Fund Description

The fund was incepted in July 1986 and is managed by Federated Investment Management Company. The fund's investment objective is to seek to provide current income. The fund invests in a diversified portfolio of investment grade fixed income securities consisting primarily of U.S. government and privately issued mortgage backed and asset backed securities, corporate debt securities, and U.S. treasury and agency securities. The fund seeks to enhance the fund's performance by allocating relatively more of its portfolio to the security type that the fund expects to offer the best balance between current income and risk. Although the value of the fund's shares will fluctuate, the fund seeks to manage the magnitude of fluctuation by limiting the fund's dollar-weighted average duration within a range of one to two years (and, in any event, to not more than three years). The fund offers dividends monthly and capital gains annually.