Fund Evaluator:

Federated Hermes Float Rate Strat Inc IS Overview

Federated Hermes Float Rate Strat Inc IS (FFRSX) is an actively managed Taxable Bond Bank Loan fund. Federated launched the fund in 2010.

The investment seeks to provide total return consistent with current income and low interest rate volatility. The fund pursues its investment objective by allocating its portfolio of investments among the following three categories of the fixed-income market: domestic investment-grade; domestic noninvestment-grade (also known as "junk bonds"), and foreign (in both emerging and developed markets). Under normal market conditions it will endeavor to maintain an average effective portfolio duration within a range of negative two (-2) to positive three (+3) years, in order to manage Share price volatility due to interest rate risk.

About Federated Hermes Float Rate Strat Inc IS (FFRSX)

There are 5 members of the management team with an average tenure of 4.45 years: Liam O'Connell (2023), J. Andrew Kirschler (2026), Anthony Venturino (2024), Kathryn Glass (2025), Mark Durbiano (2010). Management tenure is more important for actively managed funds than passive index funds.

The fund has 4 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100%, S&P UBS Leveraged Loan USD index with a weighting of 55%, ICE BofA 1-Y US Trsy Note TR USD index with a weighting of 30% and ICE BofA USD 1M Dep OR CM TR USD index with a weighting of 15%. Federated Hermes Float Rate Strat Inc IS has 47 securities in its portfolio. The top 10 holdings constitute 86.1% 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 Float Rate Strat Inc IS is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Federated Hermes Float Rate Strat Inc IS has 2.6% 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 81.4% (78.9% domestic bond, 2.6% foreign bond and 0.0% convertible bond). Federated Hermes Float Rate Strat Inc IS has 0.4% of the portfolio in cash.

Assets Under Management

The fund has $174 million in total assets, which is below the $344 million average for the Bank Loan 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.

FFRSX 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 Float Rate Strat Inc IS expense ratio is above average compared to funds in the Bank Loan category. Federated Hermes Float Rate Strat Inc IS has an expense ratio of 0.74%, which is 30% lower than its category average, making the fund expense ratio grade a B. 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 Float Rate Strat Inc IS has a portfolio turnover rate of 5%, indicating that holds its assets around 0.2 years. By way of comparison, the average portfolio turnover is 62% for the Bank Loan category.

Recently, in the month of July 2026, Federated Hermes Float Rate Strat Inc IS returned 0.6%, which earned it a grade of C, as the Bank Loan category had an average return of 0.6%. 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 Float Rate Strat Inc IS has a trailing yield of 5.68%, which is below the 6.73% 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 Float Rate Strat Inc IS Grades

Year to date, the fund has returned 1.7%, 0.2 percentage points worse than the category, which translates into a grade of D. The fund has returned 4.2% over the past year (grade of B), 6.3% over the past three years (grade of D) and 4.0% per year over the past five years (grade of F) and 3.7% per year over the past 10 years (grade of F).

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