Federated Hermes, Inc. launches Total Return Bond ETF

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.


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

SOURCE Federated Hermes, Inc.

Published on January 4, 2024

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