Investment strategies described on this site are not necessarily available through every sponsor program. Please check with your Federated Hermes representative or your home office to ascertain accessibility.
Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices.
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.
Effective Duration: A measure of a security’s price sensitivity to changes in interest rates. One of the methods of calculating the risk associated with interest rate changes on securities such as bonds.
Weighted average maturity: Is the average time to maturity of debt securities held in the fund.
Yield to Maturity (YTM): Used to determine the rate of return an investor would receive if a long-term, interest-bearing investment, such as a bond, is held to its maturity date. It takes into account purchase price, redemption value, time to maturity, coupon yield, and the time between interest payments.
Current yield: The coupon divided by price. Portfolio current yield is the market value weighted average of the security level current yields.
Weighted average coupon: This figure is calculated by weighting each bond's coupon by its relative size in the portfolio. This figure indicates whether the portfolio has more high- or low-coupon bonds.
Sharpe ratio: is calculated by dividing a fund’s annualized excess return over a risk-free rate by the fund’s annualized standard deviation. The higher the Sharpe ratio, the better the fund’s historical risk adjusted performance.
Standard deviation: The square root of the variance. A measure of dispersion of a set of data from its mean.
Beta: A measure of the volatility, or systematic risk, of a security or a portfolio, in comparison to the market as a whole.
Upside capture ratio: A statistical measure of an investment manager’s overall performance in up markets.
Downside capture ratio: A statistical measure of an investment manager’s overall performance in down markets.
The characteristics are based on a portfolio which is used as a guide for cloning (or managing) underlying accounts to a particular strategy. Taking into consideration individual investor circumstances could cause deviation from this guide (e.g. restrictions, tax requests, etc.). Portfolio characteristics are as of the date shown above and are based on individual securities in the portfolio on that date. Securities in the portfolio are subject to change.
Risk statistics are based on gross performance. Statistics shown are not indicative of future statistics and are not representative of future portfolio performance.
For a detailed discussion of Managed Account strategies or to receive additional information, please Contact Us.
Issues discussed within this communication represent the investment manager's explanation of factors that were considered when executing transactions or holding specific securities on the prior date indicated. Because this is a managed portfolio, the investment mix will change and the holdings are not indicative of future portfolio composition. Marketplace conditions fluctuate suddenly and frequently, and investment manager's opinions may change. These comments are not intended to be and do not constitute recommendations that others buy, sell or hold any of the securities discussed.
Refer to the GIPS report found on this website in the Performance Profile found in the Documents section.
For printing purposes, this commentary must be accompanied by the full GIPS report.
Past performance is no guarantee of future results.
For additional information, including definitions of related terms and indexes, see the Financial Glossary and Benchmark Index Glossary.
Federated Investment Counseling