Sustainable High Yield Bond Fund, Inc.

ticker F H B R X Mutual Funds . High Yield .

Overview

 
AT A GLANCE
Portfolio
Assets
March 31 2024
$444.5 M
YTD Return NAV
April 23 2024
-0.02%
Fixed Income
Gross
Expenses
0.70%
Net
Expenses
0.64%
STRATEGY

Seeks high current income by investing primarily in sustainable, lower-rated corporate fixed-income securities, including debt securities issued by U.S. or foreign businesses.

KEY FACTS
Key Facts - Part 1
Symbol ticker F H B R X
Benchmark Bloomberg US Corporate High Yield 2% Issuer Capped Index
Key Facts - Part 2
Fund Number(s)
492
CUSIP 3 1 4 1 9 5 5 0 4
Performance Incp. Date November 30 1977
MORNINGSTAR CATEGORY / STYLE
Category
High Yield Bond
Style
Low Limited
INVESTMENT GOALS Retirement
Growth
Income
KEY INVESTMENT TEAM
Kathryn Glass, CFA
Vice President
Portfolio Manager
Senior Investment Analyst

joined Federated Hermes
27 years of experience
Thomas Scherr, CFA
Vice President
Portfolio Manager
Senior Investment Analyst

joined Federated Hermes
18 years of experience
Mitch Reznick, CFA
Head of Sustainable Fixed Income

joined Federated Hermes
27 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 Hermes
42 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 Hermes' 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 fund's expense ratio is from the most recent prospectus. The expense ratio may reflect voluntary fee waivers and/or expense reimbursements determined by the fund's Advisor and its affiliates. The voluntary waivers and/or reimbursements, if applicable, are in effect up to but not including the later of 06/01/2024 or the date of the fund's next effective prospectus.

Effective at the start of business on May 26, 2023, the Federated Hermes High Income Bond Fund, Inc. was renamed the Federated Hermes Sustainable High Yield Bond Fund, Inc. 

The fund's Institutional Shares and R6 Shares commenced operations on January 27, 2017. For the period prior to the commencement of operations of the Institutional Shares and 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 Institutional Shares and R6 Shares since the Institutional Shares and 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.

On May 26, 2023, the fund changed its investment strategy to emphasize sustainable investments. There is no guarantee that making sustainable investments will be additive to the fund's performance, or that the fund will be able to achieve similar results with its new investment strategy.

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

Prior to May 26, 2023, the fund was named Federated Hermes High Income Bond Fund, Inc. with an investment strategy to invest in lower-rated fixed-income investments. Effective May 26, 2023, the fund's investment strategy was repositioned to enhance the fund's ability to invest in sustainable lower-rated fixed-income investments, including debt issued by foreign businesses (including emerging market debt securities).

Prices of emerging markets 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.

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

International investing involves special risks including currency risk, increased volatility, political risks, and differences in auditing and other financial standards.

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.

The fund's use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments. 

 

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.

The adviser or the sub-adviser will consider “sustainable” investments as those that are selected in accordance with its sustainable investment methodology, which is based on a materiality assessment of a company’s carbon intensity and incorporates a proprietary scoring methodology focusing on the overall sustainability credentials of issuers.

Like any aspect of investment analysis, there is no guarantee that an investment strategy that considers sustainability factors will result in performance better than or equal to products that do not consider such factors. Investing and making buy and sell decisions that emphasize sustainability factors carries the risk that, under certain market conditions, the fund or strategy may underperform those that do not incorporate such factors explicitly into the decision-making process. The application of sustainability criteria may affect exposure to certain sectors or securities and may impact relative investment performance depending on whether such sectors or securities are generally in or out of favor in the market.

Mutual funds are subject to risks and fluctuate in value.

Federated Investment Management Company is the adviser of the fund and Hermes Investment Management Limited is the sub adviser.

Index classifications are based upon, and individual portfolio securities are assigned to, the classification and sub-classification categories of the Bloomberg US Corporate High Yield 2% Issuer Capped Index (BCHY2%ICI). Individual portfolio securities that are not included in the BCHY2%ICI are assigned to an index classification category at the discretion of the fund’s advisor.

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

The ratings agencies that provided the quality breakdown ratings are Standard and Poor's, Moody's and Fitch. When ratings vary, the lowest 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.

Holdings are high yield debt securities.

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

113937726