Investment objective & strategy
As of Dec. 29, 2025 · prospectusObjective. The Funds investment objective is to seek high current income.
Strategy. The Fund pursues its investment objective by investing primarily in a diversified portfolio of high yield corporate bonds (also known as junk bonds), which include debt securities issued by U.S. or foreign businesses (including emerging market debt securities). 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. The Adviser does not limit the Funds investments to securities of a particular maturity range. The Fund may invest in derivative contracts (for example, futures contracts, option contracts and swap contracts) to implement its investment strategies as more fully described in the Funds Prospectus. There … The Fund pursues its investment objective by investing primarily in a diversified portfolio of high yield corporate bonds (also known as junk bonds), which include debt securities issued by U.S. or foreign businesses (including emerging market debt securities). 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. The Adviser does not limit the Funds investments to securities of a particular maturity range. The Fund may invest in derivative contracts (for example, futures contracts, option contracts and swap contracts) to implement its investment strategies as more fully described in the Funds Prospectus. 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 investments rated below investment grade. The Fund will notify shareholders at least 60 days in advance of any change in this investment policy. For purposes of this limitation, investments rated below investment grade are defined as high yield debt instruments (also known as junk bonds).
Top holdings
As of April 30, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| Federated Hermes Government Obligations Tax-Managed Fund, Institutional Class | GOFXX | $109.15M | 2.26% |
| ARDONAGH GRP. FIN. 8.875% | ARDGRP | $59.12M | 1.23% |
| HUB INTL. LTD 7.375% | HBGCN | $51.04M | 1.06% |
| Medline Borrower, L.P. | — | $43.81M | 0.91% |
| McAfee Corp | — | $43.04M | 0.89% |
| MADISON IAQ LLC SR UNSECURED 144A 06/29 5.875 | MADIAQ | $40.75M | 0.85% |
| USI INC/NY SR UNSECURED 144A 01/32 7.5 | COMINV | $40.42M | 0.84% |
| TEP 6.75 03/15/34 144A | TEP | $38.00M | 0.79% |
| ULTI 6.875 02/01/31 144A | ULTI | $37.50M | 0.78% |
| TIHLLC 7 1/8 06/01/31 | TIHLLC | $36.57M | 0.76% |
Portfolio moves
Jan 31, 2026 → Apr 30, 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 | 80% | 0.46% |
| High Yield Bond Core Fund | 73% | — |
| Federated Hermes Sustainable High Yield Bond Fund, Inc. · FHIIX, FHICX, FHBRX, FHISX | 67% | 0.64% |
Advisers
| Firm | Role |
|---|---|
| Federated Advisory Services Company | Adviser |
| Federated Investment Management Company | Adviser |
Footnotes
- Expense ratio as of December 29, 2025, from the fund's prospectus.
- Net assets and holdings count as of April 30, 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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