Federated Enhanced Treasury Income Fund Reports Semi-Annual Earnings

Jul 30, 2015, 08:45 ET from Federated Investors, Inc.

PITTSBURGH, July 30, 2015 /PRNewswire/ -- Federated Enhanced Treasury Income Fund (NYSE: FTT) today announced earnings for the six-month period ended May 31, 2015.  The fund employs a managed distribution plan to support a level distribution to shareholders that may be composed of income, capital gains and/or return of capital.  Under the plan, the fund makes monthly cash distributions approximating 2.5% of the fund's net asset value (NAV) on an annualized basis based on the fund's NAV from the previous month-end.  The fund may make distributions in excess of those required under the plan in order to meet its obligations under the Internal Revenue Code. 

For the six-month period, FTT reported net investment income of $0.3 million or $0.04 per share.  FTT made distributions of $1.8 million, or $0.21 per share based on the fund's managed distribution plan, a portion of which may represent a tax return of capital. Net realized and unrealized losses were $1.0 million or $0.12 per share. 

On May 31, 2015, total net assets of the fund were $120.0 million and the net asset value per share was $13.99.

Subsequent to the reporting period, the fund's investment adviser, Federated Investment Management Company, recommended to the fund's Board of Trustees that FTT convert from a closed-end fund to an open-end mutual fund. The conversion, if approved by both the fund's Board of Trustees and shareholders, would be expected to be completed during the fourth quarter of 2015. 

Fund composition and performance data for the fund as of June 30, 2015 is available in the Products section of FederatedInvestors.com.  Data is updated on the website approximately 15 days following each month-end and full portfolio listings are updated approximately 30 days following each calendar quarter-end.  To order hard copies or to be placed on a mailing list, call 1-800-245-0242 x5587538, email CEinfo@federatedinv.com or write to Federated Investors, 1001 Liberty Avenue, Floor 23, Pittsburgh, PA 15222.

Federated Investors, Inc. (NYSE: FII) is one of the largest investment managers in the United States, managing approximately $349.7 billion in assets as of June 30, 2015.  With 130 funds and a variety of separately managed account options, Federated provides comprehensive investment management worldwide to approximately 7,900 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.  For more information, visit FederatedInvestors.com

Certain statements made in this press release, such as those related to the recommended conversion to an open-end fund, and the opportunity for enhanced liquidity and shareholder value, are forward-looking statements.  Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors.  These include, but are not limited to: market developments; legal and regulatory developments; and other additional risks and uncertainties.  As a result, none of the investment adviser, the fund or any other person assumes responsibility for the accuracy and completeness of such statements in the future.

1 A portion of these distributions may be deemed a tax return of capital.  Actual amounts and sources of distributions cannot be determined until fiscal year end.

SUMMARY OF RESULTS OF OPERATIONS

(for a share outstanding throughout each period)

Six Months

Ended

(unaudited)

           Year Ended Nov. 30,

Period ended Nov. 30, 20101

May 31, 2015

2014

2013

2012

2011

Net Asset Value, Beginning of Period

$         14.28

$       14.93

$       15.96

$     16.54

$       18.03

$       19.10

Income from Investment Operations:

    Net investment income2

0.04

0.16

0.12

0.15

0.21

0.15

    Net realized and unrealized gain (loss on     investments, futures contracts and written     options

(0.12)

(0.29)

(0.59)

0.10

(0.68)

(0.10)

TOTAL FROM INVESTMENT OPERATIONS

(0.08)

(0.13)

(0.47)

0.25

(0.47)

0.05

Offering costs

(0.04)

Less Distributions:

     From net investment income

(0.04)3

(0.16)

(0.12)

(0.17)

(0.21)

(0.15)

     From net realized gain on investments

(0.17)3

     Return of capital2

          (0.37)4

          (0.55)4

        (0.71)4

          (0.81)4

          (0.93)4

TOTAL DISTRIBUTIONS TO SHAREHOLDERS

(0.21)

(0.53)

(0.67)

(0.88)

(1.02)

(1.08)

Repurchase of Common Shares

             0.005

0.01

0.11

0.05

Net Asset Value, End of Period

$          13.99

$       14.28

$       14.93

$     15.96

$       16.54

$       18.03

Market Price, End of Period

$          13.46

$       13.25

$       12.80

$     14.37

$       14.03

$       16.67

Total Return at Net Asset Value6

(0.57)%

(0.87)%

(2.29)%

1.91%

(2.66)%

0.10%

Total Return at Market Price7

3.20%

7.64%

(6.45)%

8.82%

(10.12)%

(11.72)%

1 Reflects operations for the period from Jan. 29, 2010 (date of initial investment) to Nov. 30, 2010.

2 Per share numbers have been calculated using the average shares method.

3 These distributions may be deemed a tax return of capital.  Actual amounts and sources of distributions cannot be determined until fiscal year end.

4 Represents a return of capital for federal income tax purposes.

5 Represents less than $0.01.

6 Total Return at Net Asset Value is the combination of changes in the Common Share net asset value, reinvested dividend income and reinvested capital gains distributions at net asset value, if any, and does not reflect the sales charge, if applicable. Total returns for periods of less than one year are not annualized. 

7 Total Return at Market Price is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of the reinvestment.

 

SOURCE Federated Investors, Inc.



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