Investment objective & strategy
As of April 25, 2025 · prospectusObjective. The Funds investment objective is to seek high current income by investing primarily in a professionally managed, diversified portfolio of fixed-income securities.
Strategy. The Fund pursues its investment objective by investing primarily in a diversified portfolio of noninvestment-grade, fixed income securities of domestic and foreign corporations (also known as junk bonds) including loan instruments. The fixed-income securities in which the Fund will invest include but are not limited to corporate debt securities, loan instruments, commercial paper, zero coupon securities and foreign securities. The Fund is not managed to specific maturity or duration requirements. The foreign fixed-income securities in which the Fund invests are issued by foreign corporations in either emerging or developed markets. The Funds investment adviser (the Adviser) selects securities that it believes have attractive risk-return characteristics. The Advisers securities selection process includes an analysis of the issuers financial condition, business and … The Fund pursues its investment objective by investing primarily in a diversified portfolio of noninvestment-grade, fixed income securities of domestic and foreign corporations (also known as junk bonds) including loan instruments. The fixed-income securities in which the Fund will invest include but are not limited to corporate debt securities, loan instruments, commercial paper, zero coupon securities and foreign securities. The Fund is not managed to specific maturity or duration requirements. The foreign fixed-income securities in which the Fund invests are issued by foreign corporations in either emerging or developed markets. The Funds investment adviser (the Adviser) selects securities that it believes have attractive risk-return characteristics. The Advisers securities selection process includes an analysis of the issuers financial condition, business and product strength, competitive position and management expertise. In addition, when the Adviser considers the risk/return prospects of equity securities to be attractive, the Fund may also opportunistically invest up to 20% of its assets in equity securities or pooled vehicles such as exchange-traded funds (ETFs) or other investment companies. Pooled vehicles are utilized in order to gain broad exposure to the equity market. The Fund may invest in companies with market capitalizations of any size. The Fund may invest in derivative contracts to implement its investment strategies. For example, the Fund may use derivative contracts or hybrid instruments to increase or decrease the portfolios exposure to the investment(s) underlying the derivative contract or hybrid instrument in an attempt to benefit from changes in the value of the underlying investment(s). 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 will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in fixed-income investments rated below investment grade. The Fund will notify shareholders at least 60 days in advance of any change in its investment policy that would enable the Fund to invest, under normal circumstances, less than 80% of its net assets (plus any borrowings for investment purposes) in fixed-income investments rated below investment grade.
Top holdings
As of Feb. 28, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| FEDERATED CORE TR FEDERATED BANK LOAN CORE FUND | — | $8.07M | 1.94% |
| ARDONAGH GRP. FIN. 8.875% | ARDGRP | $4.42M | 1.06% |
| BROPAR 5.875 04/15/29 144A | BROPAR | $4.34M | 1.04% |
| Restaurant Brands International Limited Partnership | BCULC | $3.96M | 0.95% |
| MADISON IAQ LLC SR UNSECURED 144A 06/29 5.875 | MADIAQ | $3.74M | 0.90% |
| Medline Borrower, L.P. | — | $3.55M | 0.85% |
| McAfee Corp | — | $3.38M | 0.81% |
| HUB INTL LTD | HBGCN | $3.33M | 0.80% |
| ALLIED UNVL HOLDCO LLC / ALLIED UNVL FIN CORP 6% 06/01/2029 144A | UNSEAM | $3.12M | 0.75% |
| MINERVA MERGER SUB INC | ATHENA | $2.82M | 0.68% |
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. |
|---|---|---|
| High Yield Bond Portfolio | 71% | 0.46% |
| High Yield Bond Core Fund | 68% | — |
| Federated Hermes High Income Bond Fund II | 66% | 0.83% |
Advisers
| Firm | Role |
|---|---|
| Federated Advisory Services Company | Adviser |
| Federated Investment Management Company | Adviser |
Footnotes
- Expense ratio as of April 25, 2025, 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. Computed by compounding the twelve monthly total returns the fund reported in its SEC N-PORT filings for 2025 (the latest prospectus does not yet chart this year).
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