Federated Hermes Total Return Bond Fund Institutional Shares (FTRBX)

Overview

The fund is focused on achieving its investment objective through a strategic approach to asset allocation, primarily concentrating on investment-grade, fixed-income securities that are denominated in U.S. dollars. Its core investment strategy encompasses a mix of assets aimed at securing stable returns, factoring in the need for both security and profitability. To diversify its portfolio and potentially enhance returns, the fund also selectively invests in high-yield, non-U.S. dollar denominated, and emerging market fixed-income securities. This allows the fund to take advantage of global market trends without significantly increasing risk exposure.

Products and Services

• Investment-Grade, U.S. Dollar Denominated Fixed-Income Securities

  This product represents the fund's primary focus, investing in high-quality bonds and other fixed-income instruments that are denominated in U.S. dollars. By concentrating on investment-grade securities, the fund aims to provide investors with a steady income stream while maintaining a low to moderate risk profile.

• High-Yield Fixed-Income Securities

  To potentially increase returns, the fund allocates a portion of its assets to high-yield fixed-income securities. These investments typically offer higher interest rates compared to investment-grade bonds, compensating for their higher risk profile. This allows the fund to enhance its income possibilities while still keeping a keen eye on risk management.

• Non-U.S. Dollar Denominated Fixed-Income Securities

  By including non-U.S. dollar denominated fixed-income securities in its portfolio, the fund seeks to capitalize on the potential of international markets. This diversification strategy not only provides exposure to global economic growth but also helps in managing risk through geographical diversification. However, the fund maintains a cautious approach by limiting exposure to these securities, ensuring that any unhedged non-U.S. dollar positions do not exceed 10% of the total assets, with a maximum cap at 20%.

• Emerging Market Fixed-Income Securities

  Emerging market investments offer a pathway to tap into the growth potential of developing economies. The fund dedicates a portion of its portfolio to emerging market fixed-income securities, acknowledging their higher risk and potential for significant returns. This strategic allocation is designed to leverage the dynamic economic environments of emerging markets, contributing to the fund's overall performance.