Founded in 1955, Federated Investors is one of the largest investment managers in the U.S. With more than $363.8 billion worth of assets under management, the company has used a disciplined approach to deliver superior value to investors. Federated offers a wide range of products, including domestic and international equity, fixed-income and money market funds. These products are distributed through more than 5,700 financial intermediaries and institutions.
Below we will share with you 5 top rated Federated mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all Federated funds, investors can click here to see the complete list of funds.
Federated Municipal High Yield Advantage A (FMOAX) seeks high current income. The fund invests a large share of its assets in long term securities exempt from tax, as well as in medium or non-investment grade quality tax exempt securities. It is non-diversified and utilizes derivatives to manage risk or enhance returns. The fund has a three year annualized return of 6.10%.
The fund manager is Lee Cunningham II and he has managed this Federated mutual fund since 2009.
Federated Prudent Bear A (BEARX) invests in short term liquid securities to hedge against its obligations related to outstanding short positions. It seeks to grow capital by taking long positions on equity securities which are attractively priced relative to their underlying value. The fund has a three year annualized return of -17.49%.
The Federated mutual fund has an expense ratio of 1.74% compared to a category average of 1.94%.
Federated MDT All Cap Core A (QAACX) seeks capital growth on a long term basis. The fund focuses on investing in common stock issued by domestic firms. The fund selects securities to be invested in from companies which are part of the Russell 3000 Index. The fund has a three year annualized return of 18.23%.
As of June 2013, this Federated mutual fund held 258 issues, with 1.81% of its total assets invested in Hewlett-Packard Co.
Federated International Leaders A (FGFAX) invests in foreign companies and concentrates on purchasing foreign stocks from developed markets. It may also purchase equity in companies from developed markets, including the United States. The fund has a three year annualized return of 13.21%.
The fund manager is Richard Winkowski and he has managed this Federated mutual fund since 2009.
Federated Capital Income A (CAPAX) seeks income growth on long term basis along with current income. The fund invests in equity and fixed-income securities with the potential to generate substantially high income. Fixed income securities purchased by the fund must have high current yields. The fund may purchase non-dollar denominated fixed income securities. It may also purchase or sell foreign currencies. The fund has a three year annualized return of 10.75%.
The Federated mutual fund has a minimum initial investment of $1,500 and an expense ratio of 1.02% compared to a category average of 0.89%.
To view the Zacks Rank and past performance of all Federated mutual funds, investors can click here to see the complete list of funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.
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