Whether they invest in cash, stocks or bonds, most U.S. investors hold portfolios that are primarily denominated in U.S. dollars. But in a global economy — and especially when the dollar is declining — this approach may limit or even damage performance. Federated Prudent DollarBear Fund offers investors a way to broaden their investment horizons through its strategic exposure to foreign bonds as well as gold and precious metals stocks. Seeking income and capital appreciation, the fund is designed to help investors benefit from a falling dollar and rising gold prices and can serve as a key portfolio diversification tool.
Its Conservatively Managed Approach Offers Investors a Number of Advantages
Pursues the highest credit quality: A significant portion of the fund's assets are invested in foreign government securities. It does not invest in corporate/agency debt, junk bonds, derivatives, or emerging market debt. Given the unprecedented U.S. financial crisis, and the political response to it, investors may want more of their assets in a portfolio of high quality foreign securities as an additional way to manage risk.
Federated Prudent DollarBear Fund Portfolio Composition as of 3/31/10
