Federated High-Income Bond A (FHIIX) was incepted in November 1977. The investment seeks high current income.
The fund invests primarily in a diversified portfolio of high-yield, lower-rated corporate bonds (also known as junk bonds). As of March 2009, its portfolio turnover was 19%.
Mark E. Durbiano has managed the fund since January 1987. The fund has topped the total returns of its benchmark index in the last 1-, 3- and 5-year periods.
Federated Prudent Bear A (BEARX) seeks capital appreciation. The fund is designed to help investors benefit from a declining stock market.
Using a “bottom-up meets top-down” investment approach, the fund tries to achieve its goal through a combination of short sales of equity securities, market indices and futures as well as put options and long positions in stocks of gold and precious metals and mining companies.
Colgate-Palmolive Co. (CL), Ecolab Inc. (ECL) and Iron Mountain Inc. (IRM) are among the top holdings at the fund.
Federated International High Income A (IHIAX) seeks to provide investors with high current income and has a secondary objective of capital appreciation. It is non-diversified.
The fund pursues its investment objective by investing primarily in emerging market fixed-income securities. It may invest in derivative contracts and also purchase shares of exchange-traded funds (ETFs).
Unit holders have to make a minimum initial investment of $1,500 to enter the Zacks#1 Rank (“Strong Buy”) fund. The fund has an expense ratio of 1.16%.
