Since its inception in 1955, Federated Investors has used a disciplined approach to deliver superior value to investors in the U.S. and abroad. With more than $389.3 billion in assets under management, it is now one of the largest investment managers in the U.S. Federated offers a diversified product line, including 145 domestic and international equity, fixed-income and money market funds. These products are distributed through more than 5,200 financial intermediaries and institutions.

Below we will share with you 4 top rated Federated funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all Federated funds, then click here.

Federated International Leaders A (FGFAX) invests in foreign companies and concentrates on purchasing stocks in foreign companies from developed markets. It may also purchase equity in companies from the United States. The fund has a five year annualized return of 6.72%.

The Federated fund has a minimum initial investment of $1,500 and an expense ratio of 1.82% compared to a category average of 1.40%.

Federated Bond A (FDBAX) seeks a high level of current income along with preservation of capital invested. Fixed income investment grade securities including corporate debt and U.S. government constitute the majority of its portfolio. Up to 35% of the securities purchased may be rated below investment grade. The fund returned 26.46% over the last one year period.

As of December 2009, this fund held 303 issues, with 1.04% of its total assets invested in JP Morgan Chase 5.125%.

Federated International High Income A (IHIAX) invests the majority of its assets in debt securities from emerging market issuers. It invests in securities with a wide range of maturity periods and credit ratings. The fund is non-diversified and may invest in shares of exchange traded funds as well as in derivative contracts. The fund has returned 46.26% in 2009 and has a three year annualized return of 5.56%.

Roberto Sanchez-Dahl is the fund manager and has managed this Federated fund since 2001.

Federated Strategic Income A (STIAX) seeks current income by investing in domestic investment grade securities such as corporate, mortgage backed and government securities. It also invests in foreign securities and domestic securities rated below investment grade. It may also consider investing in derivative contracts. The fund has a ten year annualized return of 7.09%

The fund has an expense ratio of 1.29% compared to a category average of 1.17%.

To view the Zacks Rank and past performance of all Federated funds, then click here.

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