- New active fixed-income product expands ETF
offerings
PITTSBURGH, Jan. 4, 2024
/PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global
leader in active, responsible investing, today announced the launch
of the Federated Hermes Total Return Bond ETF (NYSE: FTRB). The new
actively managed ETF benefits from Federated Hermes' 50 years of
experience managing fixed-income securities, a veteran portfolio
management team and the advantages of an ETF structure.
The Federated Hermes Total Return Bond ETF seeks to provide
total return by investing in a broad mix of bond sectors that the
portfolio management team believes will benefit from changes in
economic and market conditions, a process similar to the core plus
investment strategy of the Federated Hermes Total Return Bond Fund.
The Total Return Bond ETF combines top-down decision making with
bottom-up security selection to build a diversified, risk-managed
portfolio. The ETF invests primarily in U.S. government,
mortgage-backed and investment-grade corporate fixed income with
additional exposure to sectors such as high yield and emerging
markets debt.
"During times of market volatility, fixed-income securities can
be an important part of a diversified portfolio," said John B. Fisher, president and chief executive
officer of Federated Advisory Companies. "By offering the
rigorously vetted approach used for our recognizable fixed-income
products in an ETF structure, Federated Hermes remains well-poised
to deliver on investment client mandates in a variety of
formats."
The new ETF is managed by Senior Portfolio Managers Donald Ellenberger, Nathan Kehm and Jerome
Conner. Ellenberger has 37 years of experience, serves as
Head of Multi-Sector Strategies Group and Chairman of Yield Curve
Committee and manages several mutual funds, including Total Return
Bond Fund and Strategic Income Fund. Kehm has 35 years of
experience, manages Strategic Income Fund and oversees research on
credit-oriented alternative strategies and multi-sector products.
Conner has 27 years of experience, manages Total Return Bond Fund,
Corporate Bond Strategy Portfolio and Core Bond Fund and oversees
research in high-grade corporate and commercial mortgage-backed
securities.
Historically, Federated Hermes core plus strategy has
dynamically shifted sector, adjusted duration, managed yield curve
and overseen currency positioning based on guidance from Federated
Hermes' independent macro committees. The management team has
navigated markets during historic periods of stress as well as
during periods of recovery and growth. Federated Hermes manages
$15 billion in core plus fixed-income
assets in mutual funds, separate accounts, separately managed
accounts and collective investment trusts as part of the company's
$90 billion in fixed income assets as
of Sept. 30, 2023.
The Total Return Bond ETF launch marks Federated Hermes' fourth
ETF product, following the 2022 launch of Federated Hermes U.S.
Strategic Dividend ETF (NYSE: FDV), and the 2021 introduction of
Federated Hermes Short Duration High Yield ETF (NYSE: FHYS) and
Federated Hermes Short Duration Corporate ETF (NYSE: FCSH).
Federated Hermes, Inc. is a global leader in active, responsible
investment management, with $715.0
billion in assets under management, as of Sept. 30, 2023. We deliver investment solutions
that help investors target a broad range of outcomes and provide
equity, fixed-income, alternative/private markets, multi-asset and
liquidity management strategies to more than 10,000 institutions
and intermediaries worldwide. Our clients include corporations,
government entities, insurance companies, foundations and
endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than
2,000 employees in London,
New York, Boston and offices worldwide. For more
information, visit FederatedHermes.com/us.
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ETFs are subject to risks and fluctuate in value.
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.
International investing involves special risks including
currency risk, increased volatility, political risks, and
differences in auditing and other financial standards. Prices of
emerging-market and frontier-market securities can be significantly
more volatile than the prices of securities in developed countries,
and currency risk and political risks are accentuated in emerging
markets.
For more complete information, visit
FederatedHermes.com/us or contact your investment professional for
summary prospectuses or prospectuses. You should consider the
fund's investment objectives, risks, charges and expenses carefully
before you invest. Information about these and other important
subjects is in the fund's summary prospectus or prospectus, which
you should read carefully before investing. Prospectuses are
available by calling Federated Hermes at 1-800-341-7400 or by
visiting FederatedHermes.com/us.
Fund shares are bought and sold on an exchange at market price
(not NAV) and are not individually redeemed from the Fund. However,
shares may be redeemed at NAV directly by certain authorized
broker-dealers (Authorized Participants) in very large
creation/redemption units. Investors purchasing and selling at
market price may pay brokerage commissions will reduce returns.
Market price returns are based on the official closing price of an
ETF share or, if the official closing price isn't available, the
midpoint between the national best bid and national best offer
("NBBO") as of the time the ETF calculates the current NAV per
share. NAVs are calculated using prices as of 4 p.m. Eastern Time.
Separately managed accounts are made available through Federated
Investment Counseling.
Federated Securities Corp. Distributor
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SOURCE Federated Hermes, Inc.