Federated Floating Rate Strategic Income Fund (A) FRSAX

Share Classes Product Type Asset Class Category
Mutual Fund Fixed Income Multisector Bond
As of 03-31-2015


  • Pursues total return consistent with current income and low interest rate volatility.
  • Invests primarily in a strategic mix of floating rate fixed-income investments, which pay interest at rates that increase or decrease with changes in market rates.
  • Has broad flexibility to invest across a unique range of non-correlated floating rate sectors: U.S. non-investment grade (primarily floating-rate bank loans); U.S. investment grade (primarily adjustable rate mortgage-backed securities); and international (primarily floating-rate trade finance instruments).
  • Management team strategically positions the fund in the most attractive floating rate sectors (up to 75% in any sector) and adjusts the sector mix and duration based on relative valuations and economic and market conditions.
  • Provides an option to investors concerned with rising inflation, rising interest rates and longer-term credit risk.

Key Investment Team


Symbol   FRSAX
Fund Number(s)   687
Newspaper Listing   FdFlRStIncA
CUSIP   31420C647
Benchmark   55% Credit Suisse Leveraged Loan Index/15% One-Month Libor/30% BofA Merrill Lynch 1-Year U.S. Treasury Note Index
Performance Inception Date   02-23-2011
Fiscal Year-End   3-31

Mutual funds are subject to risks and fluctuate in value.

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.

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.

Past performance is no guarantee of future results.

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.

"Category" product classifications noted at the top are Federated's internal classifications.

For additional information, including definitions of related terms and indexes, see the Financial Glossary and Benchmark Index Glossary.

Federated Securities Corp., Distributor
Not FDIC Insured May Lose Value No Bank Guarantee
Copyright © 2015 Federated Investors, Inc.

Connect with us: LinkedIn YouTube iTunes