has taken the wraps off a new high-yield bond fund for the institutional market. The Federated Institutional High Yield Bond Fund
is benchmarked to the Lehman Brothers High Yield Bond Index
and requires a minimum initial investment of $1 million.
It will also feature a two percent redemption fee will be paid to the fund for all shares redeemed or exchanged within 90 days of purchase. The redemption fee was added to create a more stable shareholder base, explained the firm. Federated added that the fund will offer a 50 basis point target expense ratio after expense waivers.
"We believe this product leverages the expertise of one of the most knowledgeable high-yield teams in the industry and demonstrates Federated's commitment to providing investment products that effectively meet the high standards of the institutional investment community," said William D. Dawson III
, CIO of Global Fixed Income.
Mark E. Durbiano
, senior portfolio manager and Nathan H. Kehm
, portfolio manager will lead the portfolio management team.
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