I've held this fund for years, and was disappointed at no dividends. I found this on Federated's website:

__________Below from Federated________

The following hypothetical example may help to illustrate the potential for the payment of dividends to result in a return of shareholder capital:

o A fund which pays a quarterly dividend projects earnings of 4% ratably throughout the year. Therefore, it would generally pay a quarterly dividend of 1% each quarter.

o In the fourth quarter of its tax year, certain non-U.S.-dollar denominated debt securities were sold or matured at a time when the U.S. dollar was rising, resulting in the realization of a currency loss equal to 2% of the fund’s earnings.

o Based on U.S. tax rules, this realized currency loss would reduce the fund’s annual distributable earnings for the year from 4% to 2%. Assuming the fund had already distributed 3% for the year (i.e. 1% per quarter for the first three quarters), it would have already paid dividends in excess of its earnings, thus creating a return of capital for its shareholders.

________End Quote________


I translate this as "we got caught with our pants down on an unexpected surge in the US dollar just when some big foreign notes matured, so no dividends for a while". I'm holding on, expecting dividends to be back. But shame on the fund manager, we pay him handsomly to avoid just such events.