Floating Rate Strategic Income Fund

ticker F F R L X Mutual Funds . Bank Loan .

Overview

 
AT A GLANCE
Portfolio
Assets
November 30 2024
$404.8 M
YTD Return NAV
December 8 2024
7.06%
Fixed Income
Gross
Expenses
0.85%
Net
Expenses
0.73%
STRATEGY

Seeks total return consistent with current income and low interest-rate volatility by investing primarily in a strategic mix of floating-rate fixed-income investments: domestic investment grade, domestic noninvestment grade and foreign fixed-income.

KEY FACTS
Key Facts - Part 1
Symbol ticker F F R L X
Benchmark 55% Credit Suisse Leveraged Loan Index/30% ICE BofA 1-Year US Treasury Note Index/15% ICE BofA US Dollar 1-Month Deposit Offered Rate Constant Maturity Index
Key Facts - Part 2
Fund Number(s)
701
CUSIP 3 1 4 2 0 C 5 7 1
Performance Incp. Date December 3 2010
MORNINGSTAR CATEGORY / STYLE
Category
Bank Loan
INVESTMENT GOALS Retirement
Income
KEY INVESTMENT TEAM
Mark Durbiano, CFA
Senior Vice President
Senior Portfolio Manager
Head of Domestic High Yield Group
Head of Bond Sector Pod/Committee

joined Federated Hermes
42 years of experience
Anthony Venturino, CFA
Vice President
Senior Investment Analyst
Portfolio Manager

joined Federated Hermes
27 years of experience
B. Anthony Delserone Jr., CFA
Vice President
Senior Portfolio Manager

joined Federated Hermes
41 years of experience
Liam O'Connell, CFA
Vice President
Portfolio Manager
Senior Investment Analyst

joined Federated Hermes
21 years of experience
Todd Abraham, CFA
Senior Vice President
Senior Portfolio Manager
Head of Government/Mortgage Backed Fixed Income Group

joined Federated Hermes
35 years of experience
Christopher McGinley
Senior Vice President
Head of Trade Finance Team
Senior Portfolio Manager

joined Federated Hermes
20 years of experience

Performance

Characteristics

DISCLOSURES

For additional information, including definitions of related terms and indexes, see the Financial Glossary and Benchmark Index Glossary. In addition, by accessing documents containing CUSIP information, you agree to the Terms of Use for CUSIP Information contained in the Financial Glossary.

Commentary

Documents

 
DISCLOSURES

The “As of Date” for regulatory documents  is the date when the document is made available on Federated Hermes' website.

1 disclosure If this product is new, it will not have completed its first financial reporting period. Please check back to view future shareholder reports. For the new share of an existing fund, you may wish to view recent shareholder reports of another share of that fund by visiting another share.

2 disclosure Each fiscal quarter, the Fund will file with the SEC a complete schedule of its monthly portfolio holdings on “Form N-PORT.” The Fund’s holdings as of the end of the third month of every fiscal quarter, as reported on Form N-PORT, will be publicly available on the SEC’s website at www.sec.gov within 60 days of the end of the fiscal quarter upon filing.

Distributions and Taxes

Standard Performance

 
DISCLOSURES

dagger disclosure The fund's expense ratio is from the most recent prospectus. The expense ratio may reflect voluntary fee waivers and/or expense reimbursements determined by the fund's Advisor and its affiliates. The voluntary waivers and/or reimbursements, if applicable, are in effect up to but not including the later of 06/01/2025 or the date of the fund's next effective prospectus.

The fund's R6 Shares commenced operations on December 27, 2016. For the period prior to the commencement of operations of the R6 Shares, the performance information shown is for Institutional Shares. The performance of the Institutional Shares has not been adjusted to reflect the expenses applicable to the R6 since the R6 Shares have a lower expense ratio than the expense ratio of the Institutional Shares. The performance of the Institutional Shares has been adjusted to remove any voluntary waiver of the fund's expenses related to the Institutional Shares that may have occurred during the period prior to the commencement of operations of the R6 Shares.  

Total returns for periods of less than one year are cumulative.

Total return may have been lower in the absence of temporary expense waivers or reimbursements.

Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices.

High-yield, lower-rated securities generally entail greater market, credit/default and liquidity risks and may be more volatile than investment-grade securities.

International investing involves special risks including currency risk, increased volatility, political risks, and differences in auditing and other financial standards. Prices of emerging-market securities can be significantly more volatile than the prices of securities in developed countries, and currency risk and political risks are accentuated in emerging markets

The value of some mortgage-backed securities may be particularly sensitive to changes in prevailing interest rates, and although the securities are generally supported by some form of government or private insurance, there is no assurance that private guarantors or insurers will meet their obligations.

Variable and floating-rate loans and securities generally are less sensitive to interest rate changes but may decline in value if their interest rates do not rise as much or as quickly as interest rates in general. Conversely, variable and floating-rate loans and securities generally will not increase in value as much as fixed-rate debt instruments if interest rates decline.

Diversification does not assure a profit nor protect against loss.

In addition to the risks generally associated with debt instruments, such as credit, market, interest rate, liquidity and derivatives risks, bank loans are also subject to the risk that the value of the collateral securing a loan may decline, be insufficient to meet the obligations of the borrower, or be difficult to liquidate.

After-tax returns are calculated using a standard set of assumptions. Actual after-tax returns depend on each investor’s personal tax situation, and are likely to differ from those shown. The stated returns assume the highest historical federal income and capital gains tax rates, but do not reflect the effect of any applicable state and local taxes. Return After Taxes on Distributions assumes a continued investment in the fund and shows the effect of taxes on fund distributions. Return After Taxes on Distribution and Sale of Fund Shares assumes all shares were redeemed at the end of each measurement period, and shows the effect of any taxable gain (or offsetting loss) on redemption, as well as the effects of taxes on fund distributions. After-tax returns are not relevant to investors holding shares through tax-deferred programs, such as IRA, 401(k) plans. The after-tax average annual total returns are based on the 37% tax bracket and include the 3.8% tax on net investment income.

Mutual funds are subject to risks and fluctuate in value.

Product classifications noted at the top are Federated Hermes' internal classifications.

The fund may invest in Federated Hermes Portfolios that are not available to the public and provide for more effective diversification than is available through the purchase of individual securities. Where applicable, the fund holdings reflect exposure to underlying securities held by the portfolios.

The ratings agencies that provided the quality breakdown ratings are S&P Global Ratings, Moody's and Fitch. When ratings vary, the highest rating is used. Credit ratings of A or better are considered to be high credit quality; credit ratings of BBB are good credit quality, and the lowest category of investment grade; credit ratings BB and below are lower-rated securities ("junk bonds"); and credit ratings of CCC or below have high default risk. The credit quality breakdown does not give effect to the impact of any credit derivative investments made by the fund.

The holdings percentages are based on net assets at the close of business on the date above, and may not necessarily reflect adjustments that are routinely made when presenting net assets for formal financial statement purposes. Because this is a managed portfolio, the investment mix will change.

Current and future portfolio holdings are subject to risk.

Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us or view the prospectus provided on this website. Please carefully read the summary prospectus or prospectus before investing.

Federated Securities Corp., Distributor

Not FDIC Insured
May Lose Value
No Bank Guarantee

31019837