Federated High-Income Bond Fund (FHIIX) Class A

One of the popular asset classes is high yield bond mutual fund. Federated High-Income Bond is part of this high yield bond fund. This fund provides high income for investors.

Federated High-Income Bond A (FHIIX)

The Federated High Income Bond fund seeks to provide high current income. This bond mutual fund invests mainly in a diversified portfolio of high-yield corporate bonds or junk bonds, including debt securities issued by U.S. or foreign businesses. It may also invest in emerging market bonds, and derivative contracts.

Fund Details
Federated High-Income Bond Fund (FHIIX) Class A
Federated High Income Bond Fund
  • Fund Inception Date: 11/30/1977
  • Ticker Symbol: FHIIX
  • CUSIP: 314195108
  • Beta (3yr): 0.10
  • Rank in category (YTD): 46%
  • Category: High Yield Bond
  • Yield: 7.49%
  • Capital Gains: 0%
  • Expense Ratio: 1.23%  
  • Net Assets: $ 1.09 billion
  • Number of Years Up: 28 years
  • Number of Years Down: 6 years
  • Average Duration: 3.14 years
  • Average Maturity: 4.09 years
  • Annual Turnover Rate: 41%
Updated on 3/2/2012

This top bond mutual fund was first introduced to public in November 1997. The current fund manager is Mark E. Durbiano. He started managing this fund in 1987. He is the Vice President of Federated Institutional Trust. The annual expense ratio of this fund is slightly higher (1.23%) than the average in the High Yield Bond category (1.15%). The total net assets of this fund are $1.09 billion. This fund has 7.49% dividend yield. The most recent dividend was distributed in February 10, 2012 ($0.04).

This taxable bond fund has a 3-stars rating from Morningstar. Since its inception, this fixed income mutual fund has 28 years of positive return and 6 years of negative return. Among them, the best 1-year total return was achieved in 2009 with 51.14%. Based on the load adjusted return, the fund has returned 0.99% over the past 1-year, 6.22% over the past 5-year and 7.81% over the past 10-year.  The 3-year beta risk is 0.10.

The minimum initial investment is $1,500 for brokerage account. The minimum subsequent purchase is only $100. The initial investment for IRA account is quite low, only $250. There is no 12b1 fee, but the front-end sales load fee is 4.50%. There are 110 brokerages that provide the sale of this fund. The other classes of this fund are Class B (FHBBX) and Class C (FHICX).

The top 10 holdings as of January 2012 are CIT Group Inc (2.0%), Ford Motor Co (2.0%), Ally Financial Inc (1.9%), HCA Holdings Inc (1.9%), Reynolds Group (1.8%), Sprint Nextel Corp (1.7%), Intelsat Jackson Holdings SA (1.5%), American International Group Inc (1.4%), Biomet Inc (1.0%) and Digicel Ltd (1.0%). These ten companies represent 16.2% of the total portfolio. The top index classification is Technology (12.8%), Healthcare (9.7%) and Media – Non-Cable (8.0%).

Main Risks of Investing in this fund are: Credit Risks, Liquidity Risk, Risks Associated with Noninvestment-Grade Securities, Risks Related to the Economy, Interest Rate Risks, Risk of Foreign Investing, Currency Risks, Leverage Risks, etc.

Disclosure: No Position

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