Download Short-Term Income Fund - Investor Fact Sheet

3/31/17
Federated Short-Term Income Fund
Nasdaq Symbol — Y: FSTYX | R6: FSILX | IS: FSTIX | SS: FSISX | A: FTIAX
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■
■
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Sector Weightings (%)
Pursues current income.
Invests in asset-backed, mortgage-backed
and corporate bonds as well as U.S.
Treasury securities.
Maintains a portfolio dollar-weighted average
effective duration of one to three years.
Seeks to provide a relatively conservative
approach to earning a higher level of
income than is generally available through
money market funds.
Corporate - Industrial/Other 28.6
MBS Commercial 5.0
Corporate - Financial 17.4
Student Loan ABS 4.7
Credit Card ABS 12.8
Treasurys/Agencies 1.7
Auto ABS 11.5
Home Equity ABS 0.3
MBS - Fixed Rate and ARMs 7.7
Cash/Cash Equivalents 4.8
MULTI-SECTOR
Product Highlights
Other ABS 5.5
Quality Breakdown (%) **
Morningstar Category
Short-Term Bond
Benchmark 1
Government 7.9
BBB 18.4
Bloomberg Barclays 1-3 Year
U.S. Government/Credit Index
AAA 30.2
Non-Investment Grade 6.6
AA 14.7
Cash/Cash Equivalents 4.8
Benchmark 2
A 17.4
0-3 Year Composite Index***
Key Investment Team
Average Annual Total Returns (%)
Randall Bauer, CFA
Fund Statistics
Portfolio Assets
$991.1 m
Number of Securities
316
Dividends
Paid Monthly
30-Day Yield
0.83%
Weighted Average
1.9 Years
Effective Maturity
Weighted Average
1.2 Years
Effective Duration
Weighted Average Bond Price
$100.09
Top Holdings (%)
American Express Issuance Trust II
2013-1, Class C, Floating Rate Note due
2/15/19
JPMBB Commercial Mortgage
Securities Trust 2013-C15, Class A2FL,
Floating Rate Note due 11/15/45
SLM Student Loan Trust 2013-C, Class
A2B, Floating Rate Note due 10/15/31
Bank of America Merrill Lynch Large
Loan, Inc., 2013-DSNY, Class B, Floating
Rate Note due 9/15/26
Goldman Sachs Group, Inc., Floating
Rate Note due 11/15/18
U.S. Treasury Note, 1.625% due 6/30/20
BB&T Corp., Floating Rate Note due
2/01/19
Drive Auto Receivables Trust 2016-BA,
Class C, 3.19% due 7/15/22
General Motors Financial Floorplan
Owner Revolving Trust 2016-1, Class C,
Floating Rate Note due 5/17/21
Trillium Credit Card Trust II 2016-1A,
Class A, Floating Rate Note due 5/26/21
ederated
Performance
NAV
Inception
Y
8/26/04
R6
7/1/86
IS
7/1/86
SS
1/24/92
A
8/26/04
Benchmark 1
Benchmark 2
Maximum Offering Price
A
8/26/04
Performance shown is before tax.
Expense Ratio*
Cumulative
Since
Before
After
3 Month 1 Year 3 Year 5 Year 10 Year 15 Year Inception Waivers Waivers
0.53
1.55
1.18
1.35
2.68
2.89
0.58
0.36
0.64
1.54
1.00
1.16
2.44
2.61
4.42
0.55
0.35
0.62
1.54
1.03
1.19
2.51
2.69
4.60
0.84
0.53
0.56
1.31
0.82
0.99
2.31
2.49
3.69
0.98
0.72
0.35
0.92
0.43
0.60
1.92
2.13
1.33
1.11
0.41
0.71
0.96
0.93
2.34
2.74
0.49
1.23
1.18
1.36
1.90
2.56
-0.71
-0.14
0.08
0.39
1.82
-
2.05
Calendar Year Total Returns (%)
1.2
1.1
1.1
1.0
1.0
1.0
0.9
1.33
1.11
A Shares/NAV
YTD
2016
2015
2014
2013
2012
2011
2010
2009
2008
NAV
0.35
1.01
-0.20
0.36
-0.36
2.73
1.66
3.32
10.10
-1.82
Benchmark 1
0.41
1.28
0.65
0.77
0.64
1.26
1.59
2.80
3.83
4.97
Benchmark 2
0.49
1.52
0.76
1.18
1.06
2.67
1.90
4.51
8.96
-5.31
Performance quoted represents past performance, which is no guarantee of future results. Investment
return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or
less than their original cost. Current performance may be lower or higher than what is stated. To view
performance current to the most recent month-end, and for after-tax returns, contact us or visit
FederatedInvestors.com. Maximum Offering Price figures reflect the maximum sales charge of 1% for
A Shares. See the prospectus for other fees and expenses that apply to a continued investment in the fund.
* The fund’s expense ratio is from the most recent prospectus. The expense ratio may reflect voluntary fee
waivers and/or expense reimbursements determined by the fund’s Advisor and its affiliates. For A, IS, SS
and Y Shares, the voluntary waivers and/or reimbursements, if applicable, are in effect up to but not
including the later of 7/1/17 or the date of the fund’s next effective prospectus. With regard to R6 Shares,
the voluntary waivers and/or reimbursements, if applicable, are in effect up to but not including the later of
2/1/18 or the date of the fund’s next effective prospectus.
0.9
0.9
0.9
Not FDIC Insured
|
May Lose Value
|
No Bank Guarantee
Federated Short-Term Income Fund
Growth Over Time
If you had invested $10,000 in A Shares on 8/31/04 (month end of the fund’s performance inception) and
reinvested all distributions, here’s how your account would have grown by 3/31/17.
$13,043
Investors should carefully consider the fund’s
investment objectives, risks, charges and expenses
before investing. To obtain a summary prospectus
or prospectus containing this and other information, contact us or visit FederatedInvestors.com.
Please carefully read the summary prospectus or
the prospectus before investing.
Past performance is no guarantee of future results.
$0
8/04
12/07
MULTI-SECTOR
The fund’s R6 Shares commenced operations on
January 18, 2017. For the period prior to the
commencement of operations of the R6 Shares,
the performance information shown is for
Institutional Shares, which has been adjusted to
reflect the expenses of R6 Shares for each year
for which the fund’s R6 expenses would have
exceeded the actual expenses paid by the fund’s
Institutional Shares.
*** The four component indexes are the BofA Merrill
Lynch 1-3 Year U.S. Corporate Index (30% weighting
in the Composite Index), the BofA Merrill Lynch 0-3
Year Fixed Rate Asset Backed Securities Index (30%),
the BofA Merrill Lynch 1-3 U.S. Year Treasury &
Agency Index (20%) and the BofA Merrill Lynch 0-3
Year U.S. Mortgage Backed Securities Index (20%).
A Word About Risk
Mutual funds 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.
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.
The fund is not a “money market” mutual fund. Some
money market mutual funds attempt to maintain a
stable net asset value through compliance with
relevant Securities and Exchange Commission (SEC)
rules. The fund is not governed by those rules, and its
shares will fluctuate in value.
Definitions
The holdings percentages are based on net assets at the
close of business on 3/31/17 and may not necessarily
reflect adjustments that are routinely made when
presenting net assets for formal financial statement
purposes. Because this is a managed portfolio, the
investment mix will change.
Total return represents the change in value of an investment after reinvesting all income and capital gains. Total
return would have been lower in the absence of
temporary expense waivers or reimbursements.
30-day yield (also known as “SEC yield”) for A Shares
is a compounded and annualized figure calculated
according to a formula set by the SEC. The formula
requires use of a specific methodology for calculating
dividends and interest earned, and expenses accrued,
during the period, and reflects the maximum offering
price per fund share. The standardized computation is
designed to facilitate yield comparisons among different
funds. In the absence of temporary expense waivers or
reimbursements, the 30-day yield would have been
0.55% for A Shares. Yields for other classes will vary.
Growth Over Time performance is for the fund’s
A Shares. Figures do not reflect the 1% maximum
sales charge. The fund offers additional share classes
whose performance will vary due to differences in
charges and expenses.
12/11
12/15
3/17
Weighted Average Effective Maturity is the average time to
maturity of debt securities held in the fund.
Weighted Average Effective Duration (sometimes called
“Option-Adjusted Duration”) is a measure of a security’s
price sensitivity to changes in interest rates calculated
using a model that recognizes that the probability of a
bond being called or remaining outstanding until maturity
may vary if market interest rates change, and that makes
adjustments based on a bond’s embedded options (e.g.,
call rights, or in the case of a mortgage-backed security,
the probability that homeowners will prepay their mortgages), if any, based on the probability that the options will
be exercised. A fund’s weighted average effective duration
will equal the market value weighted average of each
bond’s effective duration in the fund’s portfolio. As with any
model, several assumptions are made so the weighted
average effective duration of a fund in the Federated family
of funds may not be comparable to other funds outside of
the Federated family of funds. Securities with longer
durations are more sensitive to changes in interest rates
than securities of shorter durations.
Weighted Average Bond Price - Morningstar
generates this figure from the portfolio by weighting
the price of each bond by its relative size in the portfolio. This number reveals if the manager favors bonds
selling at prices above or below face value (discount
or premium securities, respectively). A higher number
indicates a bias toward premiums. This statistic is
expressed as a percentage of par (face) value.
Bloomberg Barclays 1-3 Year U.S. Government/Credit
Index includes all medium and larger issues of U.S.
government, investment-grade corporate, and investment-grade international dollar-denominated bonds
that have maturities of between 1 and 3 years and are
publicly issued.
BofA Merrill Lynch 1-3 Year U.S. Corporate Index is a
subset of the BofA Merrill Lynch U.S. Corporate Index
(which tracks the performance of U.S. dollar-denominated investment-grade fixed rate asset-backed
securities publicly issued in the U.S. domestic market)
and includes all securities with a remaining term to
final maturity less than three years.
BofA Merrill Lynch 0-3 Year U.S. Fixed Rate Asset
Backed Securities Index is a subset of the BofA Merrill
Lynch U.S. Fixed Rate Asset Backed Securities Index
(which tracks the performance of U.S. dollar-denominated investment-grade fixed rate asset-backed
securities publicly issued in the U.S. domestic market)
and includes all securities with an average life less
than three years.
BofA Merrill Lynch 1-3 Year U.S. Treasury & Agency
Index is a subset of the BofA Merrill Lynch U.S.
Treasury & Agency Index (which tracks the performance of U.S. dollar-denominated U.S. Treasury and
non-subordinated U.S. agency debt issued in the U.S.
domestic market) and includes all securities with a
remaining term to final maturity less than three years.
BofA Merrill Lynch 0-3 Year U.S. Mortgage Backed
Securities Index is a subset of the BofA Merrill Lynch
U.S. Mortgage Backed Securities Index (which tracks
the performance of U.S. dollar-denominated fixed rate
and hybrid residential mortgage pass-through securities publicly issued by U.S. agencies in the U.S.
domestic market) and includes all securities with an
average life less than three years.
Indexes are unmanaged and cannot be invested
in directly.
Ratings and Rating Agencies
Morningstar Category identifies funds based on their
actual investment styles as measured by their underlying portfolio holdings over the past three years. If the
fund is less than three years old, the category is based
on the life of the fund. ©2017 Morningstar, Inc. All
Rights Reserved. The information contained herein:
(1) is proprietary to Morningstar; (2) may not be
copied or distributed; and (3) is not warranted to be
accurate, complete or timely. Neither Morningstar nor
its content providers are responsible for any damages
or losses arising from any use of this information. Past
performance is no guarantee of future results.
** The ratings agencies that provided the ratings are
Standard and Poor’s, Moody’s and Fitch. When ratings
vary, the highest rating is used. Credit ratings of A or
better are considered to be high credit quality; credit
ratings of BBB are good credit quality and the lowest
category of investment grade; credit ratings BB and
below are lower-rated securities (“junk bonds”); and
credit ratings of CCC or below have high default risk.
The credit quality breakdown does not give effect to
the impact of any credit derivative investments made
by the fund.
Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, PA 15222-3779, 1-800-341-7400, FederatedInvestors.com
Federated Securities Corp., Distributor
Federated is a registered trademark of Federated Investors, Inc.
G02086-60 (4/17)
2017 ©Federated Investors, Inc.