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Federated Total Return Bond Fund (TLRAX)

Core bond market exposure

Seeks to provide total return by investing primarily in U.S. dollar denominated, investment-grade, fixed-income securities.

Market-cycle flexibility

Fund managers perform thorough economic analysis of the business cycle, valuation indicators and global attractiveness to position the portfolio for various rate environments.

Risk and reward balance

Continuous assessment of risk versus return at each decision point seeks to add consistent value while managing performance volatility.

How does it perform in various rate environments?

The fund is managed to capture opportunities and manage risk through various rate environments. In response to economic forecasts, our experienced sector managers use an arsenal of interest-rate and sector-related decision tools to quickly and decisively position the fund's holdings across the fixed-income marketplace.

Performance quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance at maximum offering price includes the maximum 4.5% sales charge. Mutual fund performance changes over time and current performance may be lower or higher than what is stated.

Click on More Details and Learn More About the Fund above to view standard returns as of 6/30/19, performance current to the most recent month-end, and after-tax returns.

1 A short-term rate objective of the Federal Reserve Board. As of 3/31/19 the target rate range is 2.25%-2.50%.

Investment Approach

Fluctuating market conditions affect different bond market sectors differently. The fund's risk management process combines top-down evaluation of macroeconomic events with intensive bottom-up monitoring of individual securities and sectors to make security and sector selections in sync with a changing investment climate.

Views are as of February 8 2019 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector.

Video Transcript
Describe Federated Total Return Bond Fund.
Federated Total Return Bond Fund is an "old school" bond fund. There's no leverage, no stocks, no commodities, no crazy derivatives. Its one-stop shopping: we provide investors with access to every major sector of the taxable bond market and every maturity from 1 to 30 years.
Why should an investor consider Federated Total Return Bond Fund?
All of Federated's fixed income portfolio managers average 25 years of experience, 20 with Federated. That’s important because lots of other portfolio managers contribute to TRBF, either indirectly through their participation in the alpha pod process, or directly because they manage one of the core funds we use. Federated's process is focused on limiting risk. It's all about risk management. We rarely if ever hold more than 15% of the fund in below-investment grade securities, and we always have an allocation to Treasuries to reduce risk and hedge against a black swan event. we really are different from many of the other funds out there. We don’t have one overriding theme that dictates all our positions. Our alpha pods operate as independently as possible from one another, because we believe that independent, diversified sources of alpha are the best way to pursue not just good returns but good risk-adjusted returns. We take that diversification philosophy all the way down to the security selection level. That's a big reason why we use core funds for high beta sectors like emerging markets, bank loans, and high yield. And that includes trade finance, something unique to Federated. Not only do trade finance loans pay an attractive spread over LIBOR with low interest rate risk, they have little correlation with other asset classes, can help if your goal is good risk-adjusted returns.