Fund Evaluator:

Federated Hermes Emerging Market Debt IS Overview

Federated Hermes Emerging Market Debt IS (EMDIX) is an actively managed Taxable Bond Emerging Markets Bond fund. Federated launched the fund in 2012.

The investment seeks a high level of current income and capital appreciation is a secondary objective. The fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in emerging market fixed-income investments. It invests primarily in a portfolio of emerging market fixed-income investments. The fund's investments may be denominated in foreign currencies or U.S. dollars, and may be of any duration. It may invest in non-investment grade debt investments, which may offer higher yields than investment-grade debt investments.

About Federated Hermes Emerging Market Debt IS (EMDIX)

There are 3 members of the management team with an average tenure of 9.58 years: Mohammed Elmi (2019), Jason DeVito (2018), Ihab Salib (2013). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Bloomberg Global Aggregate TR USD index with a weighting of 100% and JPM EMBI Global Diversified TR USD index with a weighting of 100%. Federated Hermes Emerging Market Debt IS has 156 securities in its portfolio. The top 10 holdings constitute 21.5% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Federated Hermes Emerging Market Debt IS is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Federated Hermes Emerging Market Debt IS has 88.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 93.2% (4.3% domestic bond, 88.9% foreign bond and 0.1% convertible bond). Federated Hermes Emerging Market Debt IS has 6.8% of the portfolio in cash.

Assets Under Management

The fund has $29 million in total assets, which is below the $325 million average for the Emerging Markets Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

EMDIX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Federated Hermes Emerging Market Debt IS expense ratio is high compared to funds in the Emerging Markets Bond category. Federated Hermes Emerging Market Debt IS has an expense ratio of 0.94%, which is 7% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Federated Hermes Emerging Market Debt IS has a portfolio turnover rate of 59%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 83% for the Emerging Markets Bond category.

Recently, in the month of July 2026, Federated Hermes Emerging Market Debt IS returned -1.0%, which earned it a grade of C, as the Emerging Markets Bond category had an average return of -0.9%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Federated Hermes Emerging Market Debt IS has a trailing yield of 3.55%, which is below the 5.99% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Federated Hermes Emerging Market Debt IS Grades

Year to date, the fund has returned 3.0%, 0.5 percentage points better than the category, which translates into a grade of A. The fund has returned 11.4% over the past year (grade of A), 10.6% over the past three years (grade of A) and 3.7% per year over the past five years (grade of A) and 4.3% per year over the past 10 years (grade of A).

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