FMNBX — Federated Muni and Stock Advantage Fund

FMNBX Fund Overview

FMNBX — Federated Muni and Stock Advantage Fund is a US mutual fund managed by Federated Hermes Income Securities Trust, categorised as Income Allocation. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Federated Hermes Income Securities Trust
• Category: Income Allocation
• Assets under management: $1.45B
• 1-year return: 0.0%
• Ticker: FMNBX
• SEC CIK: 0000789281
• SEC series ID: S000009076
• Share class ID: C000024658

FMNBX Investment Objective and Strategy

Federated Muni and Stock Advantage Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Federated Hermes Income Securities Trust.

Investment objective

The Fund's primary investment objective is to provide tax-advantaged income

Principal investment strategy

"The Fund invests in a diversified portfolio that is allocated between tax-exempt securities and equity securities. In seeking to provide investors with a high level of tax advantaged income, the Fund will invest at least 50% of its total assets in tax-exempt securities; under current federal tax law, this strategy will enable interest earned on tax-exempt securities to retain its tax-exempt nature when paid to the Fund's shareholders as dividends. The Fund normally will invest most of its remaining assets in domestic and foreign equity securities that the Fund's investment adviser or subadviser (as applicable, ""Adviser"") believes will be income producing and pay high dividend yields, with those dividends intended to be eligible for any reduced federal income tax rate that may be available with respect to qualified dividends.

Shareholders should note that federal income tax laws with respect to qualified dividends may change, and any applicable reduced income tax rate may change or be eliminated for some or all individual taxpayers. The Fund intends that the income it receives from the portion of its portfolio invested in tax-exempt securities will be exempt from federal income tax when distributed to shareholders. The Fund will invest primarily in securities whose interest is not subject to (or not a specific preference item for purposes of) the federal alternative minimum income tax for individuals or corporations (AMT). While the Fund may invest in securities of any maturity, the Adviser generally seeks to manage the Fund so that at least a majority of the Fund's tax-exempt portfolio will be invested in intermediate (i.e., securities with stated maturities of more than three years but less than 10 years) and/or long-term (i.e., securities with stated maturities of 10 or more years) tax-exempt securities.

The allocation between intermediate and long-term securities generally will be driven by the Adviser's assessment of income opportunities, as well as the Adviser's expectations of likely price performance for different maturities along the yield curve. The Fund may invest in tax-exempt securities rated as low as ""B"" (including modifiers, sub-categories or gradations) by a nationally recognized statistical rating organization (NRSRO), or unrated securities of comparable quality. The presence of a ratings modifier, sub-category or gradation (for example, a (+) or (-)) is intended to show relative standing within the major rating categories and does not affect the security credit rating for purposes of the Fund's investment parameters. Tax-exempt securities rated below ""BBB"" by an NRSRO, such as Standard and Poor's, are considered noninvestment-grade securities, which are also known as junk bonds.

In addition to the other risks described in this Prospectus that are applicable to tax-exempt securities, noninvestment-grade securities are subject to the risks of investing in noninvestment-grade securities as described in the Fund's Prospectus. Regarding the equity securities portion of the Fund's portfolio, the Fund will invest primarily in income producing, high dividend paying domestic and foreign common stocks and other securities, the dividends from which are intended to be eligible for any reduced federal income tax rate that may be available with respect to qualified dividends. The Fund will focus on value in seeking to select primarily equity securities of mid- to large-capitalization companies that pay dividends, are characterized by sound management, have the ability to finance expected growth and may offer superior total return prospects.

The Adviser's focus on dividend paying securities strives to create an equity portfolio whose income levels are higher than the yield of applicable general market indices, such as the S&P 500 Index. The securities in which the Fund may principally invest include tax-exempt securities, which may include, for example, general obligation bonds, special revenue bonds, private activity bonds, tax increment financing bonds, municipal leases, zero-coupon securities, inverse floaters, municipal mortgage-backed securities and planned amortization classes (or PACs). Certain of the tax-exempt securities in which the Fund invests may be subject to credit enhancement. The equity securities in which the Fund may principally invest include, for example, common stocks, preferred stocks, foreign securities, American Depositary Receipts (ADRs) and domestically traded securities of foreign issuers.

The Fund also may invest principally in convertible securities and securities of other investment companies. The Fund also may principally invest in derivative contracts (such as, for example, futures contracts, option contracts and swap contracts) and hybrid instruments to implement elements of its investment strategies. For example, the Fund may use derivative contracts or hybrid instruments in an attempt to benefit from changes in the value of the underlying instrument(s), to gain exposure to the municipal bond sector, to increase or decrease the effective duration of the Fund's portfolio or to hedge against potential losses. The Fund has fundamental investment policies under which the Fund will attempt: (a) to invest its assets so that the income derived from municipal securities (or tax-exempt securities) that it distributes will be exempt from federal income tax (including the AMT), except when investing for ""defensive"" purposes; and (b) to invest so that dividends received for equity securities will qualify for federal income taxation at the 15% rate.

For purposes of this policy, shareholders should note that federal income tax laws with respect to qualified dividends change, and any applicable reduced income tax rate may change or be eliminated for some or all individual taxpayers. For example, taxpayers earning above specified income levels will pay federal income tax rates on qualified dividends above 15%. At least 80% of the Fund's assets will be invested in municipal bonds and equity securities at all times."

FMNBX Holdings

Top 10 holdings of Federated Muni and Stock Advantage Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.

View all FMNBX holdings

FMNBX Portfolio Allocation

Asset-class allocation of Federated Muni and Stock Advantage Fund by percentage of net assets, from the latest SEC N-PORT filing.

FMNBX Performance

Total returns for FMNBX (as of 2026-10-01), from SEC filings.

FMNBX Risk Information

Risk metrics for FMNBX, derived from monthly returns in SEC filings.

• 1-year volatility (annualised): 0.0%

FMNBX Costs and Fees

FMNBX costs about $175 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.75%
• Gross expense ratio: 1.83%
• Portfolio turnover: 31%
• Brokerage commissions: 1.76 bps of average net assets (SEC N-CEN)

FMNBX Cashflows

Over the 12 months to 2026-04, Federated Muni and Stock Advantage Fund had net outflows of $70.72M, from monthly SEC N-PORT filings.

FMNBX Debt Constituents

Largest debt holdings of Federated Muni and Stock Advantage Fund by percentage of net assets, from the latest SEC N-PORT filing.

FMNBX Prospectus and SEC Filings

Official Federated Muni and Stock Advantage Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2025-12-23
• Prospectus (485BPOS) — filed 2025-01-27
• Prospectus supplement (497) — filed 2024-11-18
• Portfolio holdings (N-PORT) — filed 2026-09-23
• Portfolio holdings (N-PORT) — filed 2026-06-23
• Portfolio holdings (N-PORT) — filed 2026-03-23
• Annual census (N-CEN) — filed 2026-01-12
• Annual census (N-CEN) — filed 2025-01-10

Related Funds

Other Income Allocation funds tracked on ABC INVEST:

• Strategic Advisers Fidelity Core Income Fund (FIWGX)
• Strategic Advisers Core Income Fund (FPCIX)
• Calamos Market Neutral Income Fund (CVSIX)
• Invesco Equity and Income Fund (ACEIX)
• The Hartford Balanced Income Fund (HBLAX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.