Strategic Income Fund

ticker S T I L X Mutual Funds . Multisector Bond .

Overview

 
AT A GLANCE
Portfolio
Assets
August 31 2019
$678.8 M
YTD Return NAV
September 22 2019
11.05%
Fixed Income
Gross
Expenses
0.76%
Net
Expenses
0.64%
STRATEGY

Seeks a high level of current income by investing in three categories of fixed-income securities: domestic investment-grade, domestic noninvestment-grade and foreign.

KEY FACTS
Key Facts - Part 1
Symbol ticker S T I L X
Benchmark 1 Bloomberg Barclays U.S. Aggregate Bond Index
Benchmark 2 35% Bloomberg Barclays U.S. Mortgage Backed Securities Index/40% Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index/25% Bloomberg Barclays Emerging Markets USD Aggregate Index
Key Facts - Part 2
Fund Number(s)
414
CUSIP 3 1 4 1 7 P 8 3 3
Performance Incp. Date May 4 1994
MORNINGSTAR CATEGORY & STYLE
Category
Multisector Bond
Style
Low Limited
INVESTMENT GOALS Retirement
Growth
Income
Global Diversification
MANAGERS
Donald Ellenberger
Senior Vice President
Senior Portfolio Manager
Head of Multi-Sector Strategies Group

joined Federated
33 years of experience
Nathan Kehm, CFA
Vice President
Senior Portfolio Manager

joined Federated
30 years of experience
Todd Abraham, CFA
Senior Vice President
Senior Portfolio Manager, Head of Government/ Mortgage Backed Fixed Income Group

joined Federated
30 years of experience
Ihab Salib
Senior Vice President
Senior Portfolio Manager
Head of International Fixed Income Group

joined Federated
27 years of experience
Christopher McGinley
Vice President
Head of Trade Finance Team
Portfolio Manager
Senior Investment Analyst

joined Federated
15 years of experience
Steven Wagner
Senior Vice President
Senior Portfolio Manager
Senior Investment Analyst

joined Federated
22 years of experience
Mark Durbiano, CFA
Senior Vice President
Senior Portfolio Manager
Head of Domestic High Yield Group
Head of Bond Sector Pod/ Committee

joined Federated
37 years of experience

Performance

Characteristics

DISCLOSURES

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

Commentary

Documents

 
DISCLOSURES

1 disclosure If this product is new, it will not have completed its first financial reporting period. Please check back to view future shareholder reports. For the new share of an existing fund, you may wish to view recent shareholder reports of another share of that fund by visiting another share.

The “As of Date” for regulatory documents  is the date when the document is effective with the SEC and made available on Federated’s website.

2 disclosure Each fiscal quarter, the Fund will file with the SEC a complete schedule of its monthly portfolio holdings on “Form N-PORT.” The Fund’s holdings as of the end of the third month of every fiscal quarter, as reported on Form N-PORT, will be publicly available on the SEC’s website at www.sec.gov within 60 days of the end of the fiscal quarter upon filing.

double dagger disclosure PDF file consists of a President's Message or Market Overview (if applicable) and Annual/Semi-Annual Shareholder Report. NOTE: To be sure you have the most recent information, please access both the Annual Report and the Semi-Annual Report.

Distributions and Taxes

Standard Performance

 
DISCLOSURES

dagger disclosure The funds expense ratio is from the most recent prospectus. The expense ratio may reflect voluntary fee waivers and/or expense reimbursements determined by the funds Advisor and its affiliates. The voluntary waivers and/or reimbursements, if applicable, are in effect up to but not including the later of 02/01/2020 or the date of the funds next effective prospectus.

The fund's R6 Shares commenced operations on January 27, 2017. For the period prior to the commencement of operations of the R6 Shares, the performance information shown is for A Shares. The performance of the A Shares has not been adjusted to reflect the expenses applicable to the R6 Shares since the R6 Shares have a lower expense ratio than the expense ratio of the A Shares. The performance of the A Shares has been adjusted to reflect the absence of sales charges and adjusted to remove any voluntary waiver of fund expenses related to the A Shares that may have occurred prior to commencement of operations of the R6 Shares.

Total returns for periods of less than one year are cumulative.

Total return may have been lower in the absence of temporary expense waivers or reimbursements.

Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices.

International investing involves special risks including currency risk, increased volatility, political risks, and differences in auditing and other financial standards. Prices of emerging-market and frontier-market securities can be significantly more volatile than the prices of securities in developed countries, and currency risk and political risks are accentuated in emerging markets.

High-yield, lower-rated securities generally entail greater market, credit/default and liquidity risks and may be more volatile than investment-grade securities.

After-tax returns are calculated using a standard set of assumptions. Actual after-tax returns depend on each investor’s personal tax situation, and are likely to differ from those shown. The stated returns assume the highest historical federal income and capital gains tax rates, but do not reflect the effect of any applicable state and local taxes. Return After Taxes on Distributions assumes a continued investment in the fund and shows the effect of taxes on fund distributions. Return After Taxes on Distribution and Sale of Fund Shares assumes all shares were redeemed at the end of each measurement period, and shows the effect of any taxable gain (or offsetting loss) on redemption, as well as the effects of taxes on fund distributions. After-tax returns are not relevant to investors holding shares through tax-deferred programs, such as IRA, 401(k) plans. The after-tax average annual total returns are based on the 37% tax bracket and include the 3.8% tax on net investment income.

Mutual funds are subject to risks and fluctuate in value.

The fund’s benchmark 2 is a custom index comprised of three separate indexes which track various security types. The weightings assigned to each component index of the benchmark are fixed, but do not necessarily reflect the fund’s allocation to the type of fixed-income securities represented by the component indexes, which will vary.

Product classifications noted at the top are Federated's internal classifications.

The ratings agencies that provided the quality breakdown ratings are Standard and Poor's, Moody's and Fitch. When ratings vary, the highest rating is used. Credit ratings of A or better are considered to be high credit quality; credit ratings of BBB are good credit quality, and the lowest category of investment grade; credit ratings BB and below are lower-rated securities ("junk bonds"); and credit ratings of CCC or below have high default risk. The credit quality breakdown does not give effect to the impact of any credit derivative investments made by the fund.

The holdings percentages are based on net assets at the close of business on the date above, and may not necessarily reflect adjustments that are routinely made when presenting net assets for formal financial statement purposes. Because this is a managed portfolio, the investment mix will change.

Current and future portfolio holdings are subject to risk.

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.

Federated Securities Corp., Distributor

Not FDIC Insured
May Lose Value
No Bank Guarantee

3977676355