Federated Total Return Bond Individual Investment Option

The Fund pursues its investment objective by investing primarily in U.S. dollar denominated, investment-grade, fixed income securities. In addition, the Fund may invest in high-yield, non-U.S. dollar denominated, and emerging market fixed income securities when the Adviser considers the risk-return prospects of those sectors to be attractive. The Adviser expects that, normally, no more than 15% of the Fund's total assets will be invested in securities that are rated below investment-grade. However, the Fund may opportunistically invest up to 25% of its total assets in noninvestment-grade debt securities (otherwise known as "junk bonds" or "leveraged loans").

Risks: Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices. High yield, lower-rated securities generally entail greater market, credit/default and liquidity risks, and may be more volatile than investment grade securities. The value of some mortgage-backed securities may be particularly sensitive to changes in prevailing interest rates, and although the securities are generally supported by some form of government or private insurance, there is no assurance that private guarantors or insurers will meet their obligations.

Prices and Performance: Click here to review.

Expense Ratio: The estimated overall expense ratio for this Portfolio is:

CLASS A
Underlying Estimated Fund Expenses:1 0.36%
Program Management Fee: 0.25%
State Administrative Fee: 0.02%
Marketing and Distribution Fee: 0.25%
TOTAL: 0.88%
 
CLASS C
Underlying Estimated Fund Expenses:1 0.36%
Program Management Fee: 0.25%
State Administrative Fee: 0.02%
Marketing and Distribution Fee: 1.00%
TOTAL: 1.63%

 

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1 As of May 31, 2018.

Historical prices: Search for historical price information