Federated Hermes Inc. announced its Total Return Bond Fund IS shares posted a total return net of fees of 2.02% for the third quarter, closely matching the 2.03% return of the Bloomberg US Aggregate Bond Index $(BAB)$ for the same period. The fund's performance reflected actual cash flows, transaction costs, and other expenses not included in the BAB's return. The bond market saw strong gains during the quarter, with the Bloomberg US Aggregate Bond Index gaining 2.03% and year-to-date gains exceeding 6%. Sector highlights included excess returns of 0.83% for mortgage-backed securities $(MBS)$, 0.39% for asset-backed securities (ABS), 0.97% for investment grade corporates, and 1.60% for high yield bonds, attributed to broad spread tightening and continued market appetite for risk. The company noted it remains conservatively positioned due to rich credit valuations.
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