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Federated Short-Term Euro Prime Fund
Class 11 Shares - accumulation
31 May 2015
Fitch AAAmmf rated
CREDIT RATING (%)
INVESTMENT OBJECTIVE AND STRATEGY
The investment objective of the Fund is to maximise current income consistent with the preservation of principal and liquidity by investing in a diversified portfolio of high quality euro
denominated short-term debt and debt related instruments. The primary objective is to
maintain the net asset value either constant at par (net of earnings) or at the value of the
investors’ initial capital plus earnings. The Fund is a European Securities and Market
Authority (“ESMA”) Short-Term Money Market Fund.
INVESTMENT MANAGER’S REPORT
Greece managed to avoid default by making its two payments to the International Monetary
Fund (IMF) in May. The first seemed to pass without issue, however the second payment
caused controversy because Greece had only €100million available. The other €650million
was drawn from their IMF reserve holdings, which in effect meant the IMF was paid with its
own money!
With the next deadline due in June, short-end Greek bonds have been posting new high
yields with the 2-year debt rising by 4.01% and 4-year rising by 2.36% as the risk of a “take it
or leave” it offer from creditors rise.
Despite rumblings in Greece, the eurozone as a whole has started to see faint signs of a
turnaround in the economy as quantitative easing (QE) continued at full pace. May CPI
estimates surprised to the upside, coming in at 0.30% year-on-year (up from 0.00%) with
core CPI (which excludes fuel and food prices) rising from 0.60% to 0.90%. GDP also saw
slight increases with 0.40% quarter-on-quarter and 1.00% year-on-year (both 0.10% above
previous quarter). The April unemployment rate fell from 11.20% to 11.10%.
With these green shoots of data and investor appetite for yield growing, the traditional safe
haven of German government debt saw a significant correction in yields through the month.
German 10-year yields rose more than 10bps, with the 5-year in particular seeing a high of
0.12% after hitting a low of -0.15% as recently as mid-April.
Conversely, Portugal and Ireland continue to benefit from the current low yield environment
(and knock-on effects from QE), with Portugal issuing 6-month bills at -0.002%, the first time
it had issued negative debt, and Ireland issuing 6-month bills at -0.03%, even lower than the
previous low of -0.01%.
Regardless of signs of growth, yields remain at severely low/negative levels-with 3-month
euribor hitting a new low of -0.01% and EONIA touching -0.14%-and look to remain there in
the near term
A-1+ 47.4
A-1, 7 days or less
20.1
A-1, 8 days or
more 32.5
PORTFOLIO COMPOSITION (%)
DEPO 46.6
CP 18.4
CD 4.8
FRN 3.2
BOND 27.0
EFFECTIVE MATURITY SCHEDULE (%)
O/N 46.6
1 Month 3.9
2 Months 19.9
3 Months 14.5
6 Months 11.0
1 Year 4.1
PERFORMANCE
Net Average Annual Total Returns (%) (See Important Legal Information)
WEIGHTED AVERAGE MATURITY
Cumulative
3 Month
Year to Date
1 Year
Since
Inception
0.00
0.00
0.00
0.00
Past performance is no guarantee of future performance and the value of investments and income (yield)
from them may fall as well as rise and investors may not get back the amount originally invested. All
returns are shown annualised on an actual/365 day count basis. Fund returns are net of fees and charges
for share class 11.
46.85 days
LIQUIDITY**
Daily
Weekly
**Calculated according to the Institutional Money
Market Funds Association (IMMFA) guidelines.
TOP PORTFOLIO ISSUERS (excluding overnight deposits)
GE Capital European Funding
Nordea Bank AB
BASF AG
Unilever N.V.
Roche Holdings, Inc
Caterpillar International Finance Limited
Procter & Gamble Co.
Sheffield Receivables Company LLC
Svenska Handelsbanken, Stockholm
Rabobank Nederland NV, Utrecht
These holdings may not be indicative of future portfolio composition. Because this is a managed portfolio,
the investment mix will change.
For Professional Investors Only
46.60%
46.60%
ederated
Federated Short-Term Euro Prime Fund
31 May 2015
Class 11 Shares - accumulation
SHARE CLASS DETAILS
FUND INFORMATION
Class
ISIN
SEDOL
Dividend
Ongoing
Charges*
11
GB00B3K45C97
B3K45C9
Accumulating
24bps
Min Initial
Investment
€250,000
*The ongoing charges figure is based on the annual management charge and the running costs of the
fund for the 12 month period ending 31 December 2014. It excludes portfolio transaction costs. The
ongoing charge figure may vary from year to year.
Domicile
UK
Structure
OEIC UCITS
Launch Date
30 November 2012
Dealing Cut Off
1.00pm London time
Liquidity
Same Day
Currency
EUR
Benchmark
FEDERATED INVESTORS (UK) LLP
Federated Investors (UK) LLP offers liquidity fund products on a wholesale, competitive basis for a variety
of corporate and institutional investors to distribute to their client base or use in the management of their
own liquidity. Originally established in 2007 under the name Prime Rate Capital Management LLP, as an
independent, UK-domiciled specialist provider of AAA-rated liquidity funds (known as Qualifying Money
Market Funds), it was acquired on 13 April 2012 by Federated Investors, Inc., one of the largest investment managers in the US. On 23 September 2013 it was renamed Federated Investors (UK) LLP.
7 Day € LIBID
Fund Volume
€57.6 million
PORTFOLIO MANAGERS
Gary Skedge
Vice President
Senior Portfolio Manager
ABOUT FEDERATED
A financial industry pioneer since 1955, Federated is a leading global investment manager known for its
stability. Federated continues to increase its market footprint through both organic growth and strategic
acquisitions to take advantage of global opportunities. As one of the largest US investment managers
with assets under management of approximately US$355 billion, Federated has been managing international investments since 1984, upon the launch of one of the first international equity funds. In 1991,
Federated International Management Limited (“FIML”) was established in Dublin to manage Irish-domiciled UCITS. Federated opened an office in Frankfurt in 1998 and subsequently created Federated Asset
Management GmbH to further concentrate on the German market and the German-speaking countries in
Europe. In 2012, Federated acquired Prime Rate Capital Management LLP, now Federated Investors (UK)
LLP, as a manager of UK-domiciled UCITS. FIML, Federated Asset Management GmbH and Federated
Investors (UK) LLP are part of a highly experienced investment franchise with more than 200 investment
professionals managing products on a truly global basis.
Ketan Shah
Portfolio Manager
IMPORTANT LEGAL INFORMATION
This document is issued by Federated Investors (UK) LLP of Nuffield House, 41-46 Piccadilly, London,
W1J 0DS, a limited liability partnership registered in England OC327292 which is authorised and regulated
by the Financial Conduct Authority with FCA reference number 469674. Past performance is no guarantee
of future performance and the value of investments and income (yield) from them may fall as well as rise
and investors may not get back the amount originally invested. Although the fund will attempt to maintain
a stable net asset value per share, there is no assurance it will be able to do so. Shares of money market
funds are not bank deposits and are not guaranteed by any government agency or other entity. For
detailed information on the specific risks of investment, please refer to the fund’s prospectus. Tax assumptions are subject to statutory change and the value of tax reliefs will depend on individual circumstances.
Portfolio holdings are as of the date indicated, are subject to change, are not indicative of future holdings,
and should not be viewed as a recommendation, investment advice or suitability of any investment. Fund
credit ratings are based on an evaluation of several factors, including credit quality, diversification, and
maturity of assets in the portfolio, as well as management strength and operational capabilities. Ratings of
funds and their portfolio holdings are subject to change and do not remove market risks. Applications to
invest must only be made on the basis of the offer document relating to the investment, which is only
available to Eligible Counterparties and Professional Clients.
The Federated Short-Term Euro Prime Fund is a sub fund of the umbrella fund, Federated Cash Management Funds which is an OEIC governed by UK law and authorised by the FCA. Any investment in the
funds is made subject to the terms of the Funds’ Prospectus and relevant Key Investor Information
Document, which are available in English free of charge from the Investment Manager, Federated
Investors (UK) LLP, Nuffield House, 41-46 Piccadilly, London, W1J 0DS.
For a copy of the Prospectus, Key Investor Information Document, information on portfolio holdings or
other matters, please contact us on +44 (0) 20 7618 2600, or email us on info@FederatedInvestors.co.uk.
Alternatively please see the information on our website at FederatedInvestors.co.uk.
FURTHER INFORMATION
Federated Investors (UK) LLP
Nuffield House, 41-46 Piccadilly
London, W1J 0DS
For Professional Investors Only
Federated Investors (UK) LLP
Federated is a registered trademark of Federated Investors, Inc.
G44548-25 (6/15)
2015 ©Federated Investors, Inc.
Phone
Fax
Email
Website
+44 (0) 20 7292 8620
+44 (0) 20 7292 8655
info@FederatedInvestors.co.uk
FederatedInvestors.co.uk