Founded in 1955, Federated Investors is one of the largest investment managers in the U.S. With more than $363 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 5,200 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 High-Income Bond A (FHIIX) seeks high current income. The fund purchases a wide variety of junk bonds issued by both domestic and foreign companies. It also purchases emerging market bonds and invests in derivatives. The fund has a five year annualized return of 7.28%.
Mark E. Durbiano is the fund manager and has managed this Federated mutual fund since 1986.
Federated Capital Income A (CAPAX) invests in debt as well as equity securities which have the ability to generate high levels of income. Fixed-income securities are selected on the basis of their current yields. It may also purchase and sell foreign currencies. The fund has a five year annualized return of 4.5%.
The Federated mutual fund has a minimum initial investment of $1,500 and an expense ratio of 1.30% compared to a category average of 0.90%.
Federated Strategic Income A (STIAX) seeks high current income. The fund invests in three different kinds of fixed-income securities. These include domestic securities rated investment grade, junk bonds and foreign debt. It may invest a maximum of 50% of its assets in any one of these categories. The fund has a five year annualized return of 7.41%.
The Fund Manager is Joseph M. Balestrino and he has managed this Federated mutual fund since 1996.
Federated Municipal High Yield Advantage A (FMOAX) 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 five year annualized return of 2.71%.
As of March 2012, this Federated mutual fund held 329 issues, with 1.33% of its total assets invested in Wisconsin St Gen Fd Annual App Gen 5.75%.
Federated Bond A (FDBAX) seeks high current income. The fund purchases a wide range of fixed income securities rated investment grade. Not more than 35% of its assets may be invested in junk bonds. It may also invest in derivatives or hybrid contracts as well as in securities guaranteed by the U.S. government. The fund has a five year annualized return of 7.32%.
The Federated mutual fund has a minimum initial investment of $1,500 and an expense ratio of 0.98% compared to a category average of 0.92%.
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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