Federated Investors has used a disciplined approach to deliver superior value to investors since its inception in 1955. The company is now one of the largest investment managers in the U.S. managing more than $355 billion worth of assets. Federated offers a wide range of products, including domestic and international equity, fixed-income and money market funds. These products are distributed through a large network of 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 Capital Income A (CAPAX) 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 11.15%.
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 0.89%.
Federated Prudent Bear A (BEARX) seeks capital growth. The fund 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 -13.18%.
The Fund Manager is Ryan Bend and he has managed this Federated mutual fund since 2008.
Federated Muni and Stock Advantage A (FMUAX) invests in tax-exempt instruments and equity securities. A minimum of half of its assets are invested in tax-exempt securities. These securities must not be subject to the federal alternative minimum tax. The fund has a three year annualized return of 10.41%.
As of March 2012, this Federated mutual fund held 204 issues, with 2.21% of its total assets invested in Reynolds American Inc.
Federated US Government Bond (FEDBX) seeks total return. The fund focuses on acquiring U.S. government securities as well as treasury securities and related derivatives. It measures the efficacy of its investment strategy by comparing both the performance and composition of its portfolio to an index which comprises of U.S. Treasury securities. The fund has a three year annualized return of 10.53%.
The Federated mutual fund has an expense ratio of 1.29% compared to a category average of 0.84%.
Federated Market Opportunity A (FMAAX) seeks absolute returns with low correlation to the domestic equity market. The fund invests heavily in domestic and foreign securities which are attractively priced relative to their underlying value. It may also invest in derivatives, ETFs and hybrid instruments. The fund has a three year annualized return of -2.69%.
Dana Meissner is the fund manager and has managed this Federated mutual fund since 2009.
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.
More From Zacks.com