Federated Hermes Total Return Bond Fund Class C Shares (TLRCX)

Overview

The described company operates as a fund focusing on investments in various types of fixed-income securities. It aims to meet its investment objective by primarily investing in U.S. dollar denominated, investment-grade fixed-income securities. The fund's strategy includes diversification through investments in high-yield, non-U.S. dollar denominated, and emerging market fixed-income securities. There are specific limitations set on the amount of unhedged non-U.S. dollar denominated fixed-income securities and foreign currencies, ensuring a controlled exposure to foreign investment risks. The fund carefully balances its portfolio between risk and return to protect and grow investors' capital.

Products and Services

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

  This product focuses on investments in high-quality fixed-income securities denominated in U.S. dollars. It forms the primary component of the fund's investment strategy, aiming to provide stable returns through bonds and other debt instruments rated as investment-grade by major rating agencies.

• High-Yield Fixed-Income Securities

  The fund also invests in high-yield fixed-income securities, which typically offer higher returns in exchange for a higher risk profile. These investments are selected based on rigorous analysis to identify opportunities that align with the fund's risk-return objectives.

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

  As part of its diversification strategy, the fund invests in fixed-income securities that are not denominated in U.S. dollars. These investments are subject to foreign exchange risk, and their proportion in the fund's portfolio is carefully managed, not normally exceeding 10% of the total assets and capped at a maximum of 20%.

• Emerging Market Fixed-Income Securities

  Emerging market investments offer the potential for higher returns and are an important component of the fund's strategy to diversify its investment portfolio. These investments are selected with considerable care, considering the higher potential volatility and risk associated with emerging markets.