Investment objective & strategy
As of Feb. 25, 2026 · prospectusObjective. The Funds investment objective is to provide total return.
Strategy. The Fund invests primarily in a diversified portfolio of investment-grade, corporate fixed-income securities. While the Fund may invest in securities of any maturity, the Funds average duration is expected to vary and may range between one and ten years depending on Federated Investment Management Companys (the Adviser) view of interest rates. The Fund may also invest in Treasury securities, government securities and derivative instruments (such as futures, options and swaps or hybrid instruments) to implement its investment strategies. There can be no assurance that the Funds use of derivative contracts or hybrid instruments will work as intended. Derivative investments made by the Fund are included within the Funds 80% policy (as described below) and are calculated at market value. The … The Fund invests primarily in a diversified portfolio of investment-grade, corporate fixed-income securities. While the Fund may invest in securities of any maturity, the Funds average duration is expected to vary and may range between one and ten years depending on Federated Investment Management Companys (the Adviser) view of interest rates. The Fund may also invest in Treasury securities, government securities and derivative instruments (such as futures, options and swaps or hybrid instruments) to implement its investment strategies. There can be no assurance that the Funds use of derivative contracts or hybrid instruments will work as intended. Derivative investments made by the Fund are included within the Funds 80% policy (as described below) and are calculated at market value. The Fund may invest up to 15% of its net assets in illiquid securities. Some of the corporate fixed-income securities in which the Fund invests are considered to be foreign securities as that term is defined in this Prospectus. Certain of the government securities in which the Fund invests are not backed by the full faith and credit of the U.S. government, such as those issued by the Federal Home Loan Mortgage Corporation (Freddie Mac), the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Bank System. These entities are, however, supported through federal subsidies, loans or other benefits. The Fund may also invest in government securities that are supported by the full faith and credit of the U.S. government, such as those issued by the Government National Mortgage Association (Ginnie Mae). Finally, the Fund may invest in certain government securities that have no explicit financial support, but which are regarded as having implied support because the federal government sponsors their activities. The Adviser actively manages the Funds portfolio seeking total returns over longer time periods in excess of the Funds benchmark, the Baa (BBB) component of the Bloomberg US Credit Index (BUSCI). The BUSCI is an unmanaged index comprised of corporate bonds or securities represented by the following sectors: industrial, utility and finance, including both U.S. and non-U.S. corporations and non-corporate bonds or securities represented by the following sectors: sovereign, supranational, foreign agencies and foreign local governments. There can be no assurance that the Adviser will be successful in achieving investment returns in excess of the BUSCI. When buying and selling portfolio securities, the Adviser utilizes a four part decision-making process. First, the Adviser invests the Funds portfolio seeking the higher relative returns of corporate fixed-income securities, when available, while attempting to limit the associated credit risks. Second, the Adviser selects individual securities that it believes may outperform the Funds benchmark index. Third, the Adviser may seek to change the Funds interest rate volatility by lengthening or shortening the Funds portfolio duration from time to time based on its interest rate outlook. Fourth, the Adviser strategically positions the portfolio based on its expectations for changes in the yield curve. The Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in corporate fixed-income investments. The Fund will notify shareholders at least 60 days in advance of any change in this investment policy.
Top holdings
As of March 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| UNITED MEXICAN | — | $4.08M | 1.94% |
| Federated Hermes Government Obligations Tax-Managed Fund, Institutional Class | GOFXX | $2.85M | 1.36% |
| T-MOBILE USA INC | — | $1.90M | 0.90% |
| SOUTHWESTN EL PR | — | $1.81M | 0.86% |
| T-MOBILE USA INC | — | $1.66M | 0.79% |
| GEN MOTORS FIN | — | $1.65M | 0.78% |
| AT&T INC | — | $1.56M | 0.74% |
| FORD MOTOR CRED | — | $1.53M | 0.73% |
| CITIGROUP INC | — | $1.52M | 0.72% |
| ORACLE CORP | — | $1.52M | 0.72% |
Portfolio moves
Dec 31, 2025 → Mar 31, 2026How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| Federated Hermes Intermediate Corporate Bond Fund · FIIFX, INISX, ICBRX | 18% | 0.46% |
| Federated Hermes Quality Bond Fund II | 15% | 0.77% |
| Federated Hermes Corporate Bond Fund · FDBAX, FDBCX, ISHIX, FDBIX, FDBLX | 15% | 0.59% |
Advisers
| Firm | Role |
|---|---|
| Federated Advisory Services Company | Adviser |
| Federated Investment Management Company | Adviser |
Footnotes
- Expense ratio as of February 25, 2026, from the fund's prospectus.
- Net assets and holdings count as of March 31, 2026, from the fund's N-PORT filing.
- Total return for calendar year 2025, before tax and after fund expenses. As reported in the fund's prospectus performance bar chart.
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