Investment objective & strategy
As of Jan. 27, 2026 · prospectusObjective. The Funds investment objective is to provide as high a level of current income as is consistent with the preservation of capital.
Strategy. Under normal market conditions, the Fund invests primarily in a diversified portfolio of investment-grade corporate debt securities. The Fund may also invest in other fixed-income securities and derivative contracts and/or hybrid instruments to implement its investment strategy. The Adviser seeks to enhance the Funds performance by allocating relatively more of its portfolio to the security type that the Adviser expects to offer the best balance between current income and risk. The Fund may invest up to 35% of its assets in fixed-income securities rated below investment grade. The Adviser may lengthen or shorten duration from time to time based on its interest rate outlook, but the Fund has no set duration parameters. Duration measures the price sensitivity of a fixed-income … Under normal market conditions, the Fund invests primarily in a diversified portfolio of investment-grade corporate debt securities. The Fund may also invest in other fixed-income securities and derivative contracts and/or hybrid instruments to implement its investment strategy. The Adviser seeks to enhance the Funds performance by allocating relatively more of its portfolio to the security type that the Adviser expects to offer the best balance between current income and risk. The Fund may invest up to 35% of its assets in fixed-income securities rated below investment grade. The Adviser may lengthen or shorten duration from time to time based on its interest rate outlook, but the Fund has no set duration parameters. Duration measures the price sensitivity of a fixed-income security to changes in interest rates. The Fund may invest in derivative contracts or hybrid contracts (such as, for example, futures contracts, options contracts and swap contracts) to implement its investment strategy as more fully described herein. 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 also invest in government securities that are supported by the full faith and credit of the U.S. government. When selecting investments for the Fund, the Fund can invest in securities directly or in other investment companies, including, for example, funds advised by the Adviser or its affiliates (Underlying Funds). At times, the Funds investment in Underlying Funds may be a substantial portion of the Funds portfolio. 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 Feb. 28, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| FED HIGH YLD BOND PORT | — | $143.47M | 13.10% |
| HONEYWELL INTL | — | $8.35M | 0.76% |
| GOLDMAN SACHS GP | — | $7.66M | 0.70% |
| JPMORGAN CHASE | — | $7.58M | 0.69% |
| MORGAN STANLEY | — | $7.47M | 0.68% |
| BANK OF NY MELLO | — | $7.39M | 0.67% |
| NEXTERA ENERGY | — | $6.81M | 0.62% |
| DH EUROPE | — | $6.43M | 0.59% |
| WELLS FARGO CO | — | $6.37M | 0.58% |
| CITIGROUP INC | — | $5.96M | 0.54% |
Portfolio moves
Nov 30, 2025 → Feb 28, 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. |
|---|---|---|
| SA Federated Hermes Corporate Bond Portfolio | 59% | 0.55% |
| Federated Hermes Quality Bond Fund II | 17% | 0.77% |
| Federated Hermes Intermediate Corporate Bond Fund · FIIFX, INISX, ICBRX | 16% | 0.46% |
Advisers
| Firm | Role |
|---|---|
| Federated Advisory Services Company | Adviser |
| Federated Investment Management Company | Adviser |
Footnotes
- Expense ratio as of January 27, 2026, from the fund's prospectus.
- Net assets and holdings count as of February 28, 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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