Federated Hermes MDT Balanced Fund
Portfolio of Investments
October 31, 2023 (unaudited)
Shares or Principal Amount | Value | ||
COMMON STOCKS—55.6% | |||
Communication Services—4.5% | |||
21,207 | 1 | Alphabet, Inc., Class A | $ 2,631,365 |
83,798 | 1 | Altice USA, Inc. | 242,176 |
19,336 | 1 | CarGurus, Inc. | 333,159 |
21,112 | 1 | Cars.com, Inc. | 321,536 |
2,819 | Comcast Corp., Class A | 116,397 | |
529 | Electronic Arts, Inc. | 65,485 | |
2,733 | 1 | Match Group, Inc. | 94,562 |
6,864 | 1 | Meta Platforms, Inc. | 2,067,917 |
138 | 1 | Netflix, Inc. | 56,813 |
11,599 | 1 | Spotify Technology SA | 1,911,051 |
27,789 | 1 | ZoomInfo Technologies, Inc. | 360,145 |
TOTAL | 8,200,606 | ||
Consumer Discretionary—6.1% | |||
30,239 | Advance Auto Parts, Inc. | 1,573,335 | |
9,213 | 1 | Airbnb, Inc. | 1,089,806 |
11,132 | 1 | Amazon.com, Inc. | 1,481,558 |
171 | 1 | AutoZone, Inc. | 423,589 |
5,301 | 1 | Bright Horizons Family Solutions, Inc. | 392,592 |
2,961 | 1 | DoorDash, Inc. | 221,927 |
5,475 | eBay, Inc. | 214,784 | |
12,330 | 1 | Expedia Group, Inc. | 1,174,926 |
22,641 | Ford Motor Co. | 220,750 | |
52,227 | Gap (The), Inc. | 668,506 | |
2,813 | Genuine Parts Co. | 362,483 | |
15,297 | 1 | Goodyear Tire & Rubber Co. | 182,034 |
407 | McDonald’s Corp. | 106,703 | |
644 | Murphy USA, Inc. | 233,572 | |
480 | 1 | O’Reilly Automotive, Inc. | 446,611 |
14,295 | PVH Corp. | 1,062,833 | |
7,061 | 1 | Royal Caribbean Cruises, Ltd. | 598,279 |
1,099 | 1 | Ulta Beauty, Inc. | 419,060 |
12,680 | 1 | Under Armour, Inc., Class A | 86,858 |
878 | Wingstop, Inc. | 160,472 | |
971 | Yum! Brands, Inc. | 117,355 | |
TOTAL | 11,238,033 | ||
Consumer Staples—3.8% | |||
11,638 | Albertsons Cos., Inc. | 252,545 | |
2,255 | Archer-Daniels-Midland Co. | 161,390 | |
271 | Coca-Cola Bottling Co. | 172,467 | |
1,659 | Colgate-Palmolive Co. | 124,624 | |
228 | Costco Wholesale Corp. | 125,956 | |
20,502 | 1 | Hain Celestial Group, Inc. | 226,547 |
5,547 | Hershey Foods Corp. | 1,039,231 | |
35,676 | Kroger Co. | 1,618,620 | |
2,493 | Lamb Weston Holdings, Inc. | 223,871 |
1
Shares or Principal Amount | Value | ||
COMMON STOCKS—continued | |||
Consumer Staples—continued | |||
13,059 | PepsiCo, Inc. | $ 2,132,274 | |
4,376 | Procter & Gamble Co. | 656,531 | |
1,180 | WalMart, Inc. | 192,824 | |
TOTAL | 6,926,880 | ||
Energy—2.3% | |||
3,857 | Civitas Resources, Inc. | 290,934 | |
2,715 | Devon Energy Corp. | 126,438 | |
21,158 | Marathon Oil Corp. | 577,825 | |
16,406 | Marathon Petroleum Corp. | 2,481,407 | |
634 | Valero Energy Corp. | 80,518 | |
7,194 | 1 | Weatherford International PLC | 669,689 |
TOTAL | 4,226,811 | ||
Financials—6.5% | |||
4,561 | Ameriprise Financial, Inc. | 1,434,754 | |
5,526 | Apollo Global Management, Inc. | 427,933 | |
23,433 | Bank of New York Mellon Corp. | 995,903 | |
252 | 1 | Berkshire Hathaway, Inc., Class B | 86,015 |
1,512 | Cboe Global Markets, Inc. | 247,802 | |
776 | Chubb Ltd. | 166,545 | |
2,762 | Corebridge Financial, Inc. | 55,240 | |
16,518 | Fidelity National Information Services, Inc. | 811,199 | |
9,581 | 1 | Green Dot Corp. | 107,116 |
15,952 | Huntington Bancshares, Inc. | 153,937 | |
9,784 | Interactive Brokers Group, Inc., Class A | 783,405 | |
2,882 | Jackson Financial, Inc. | 105,798 | |
1,297 | JPMorgan Chase & Co. | 180,361 | |
1,091 | Marsh & McLennan Cos., Inc. | 206,908 | |
641 | Mastercard, Inc. | 241,240 | |
367 | MSCI, Inc., Class A | 173,059 | |
8,618 | Northern Trust Corp. | 568,012 | |
26,932 | 1 | PayPal Holdings, Inc. | 1,395,078 |
16,237 | Prudential Financial, Inc. | 1,484,711 | |
3,660 | State Street Corp. | 236,546 | |
8,587 | The Travelers Cos., Inc. | 1,437,807 | |
12,645 | Virtu Financial, Inc. | 233,806 | |
221 | Visa, Inc., Class A | 51,957 | |
31,056 | Western Union Co. | 350,622 | |
TOTAL | 11,935,754 | ||
Health Care—7.4% | |||
12,338 | AbbVie, Inc. | 1,741,879 | |
1,029 | 1 | Align Technology, Inc. | 189,943 |
7,913 | 1 | AnaptysBio, Inc. | 129,061 |
1,825 | Baxter International, Inc. | 59,185 | |
1,842 | 1 | Biogen, Inc. | 437,549 |
4,372 | Bristol-Myers Squibb Co. | 225,289 | |
12,949 | 1 | Centene Corp. | 893,222 |
15,524 | 1 | Community Health Systems, Inc. | 33,221 |
3,717 | CVS Health Corp. | 256,510 | |
2,423 | Dentsply Sirona, Inc. | 73,683 | |
51,357 | 1 | Elanco Animal Health, Inc. | 452,455 |
2
Shares or Principal Amount | Value | ||
COMMON STOCKS—continued | |||
Health Care—continued | |||
784 | Elevance Health, Inc. | $ 352,871 | |
1,870 | Eli Lilly & Co. | 1,035,849 | |
4,291 | 1 | GE HealthCare Technologies, Inc. | 285,652 |
16,697 | Gilead Sciences, Inc. | 1,311,382 | |
2,468 | Humana, Inc. | 1,292,467 | |
10,573 | 1 | Incyte Genomics, Inc. | 570,202 |
9,300 | Johnson & Johnson | 1,379,562 | |
851 | McKesson Corp. | 387,511 | |
10,431 | Merck & Co., Inc. | 1,071,264 | |
407 | 1 | Molina Healthcare, Inc. | 135,511 |
6,587 | 1 | Myriad Genetics, Inc. | 102,626 |
6,280 | 1 | Nevro Corp. | 90,620 |
7,540 | 1 | Omnicell, Inc. | 267,972 |
19,132 | 1 | Teladoc Health, Inc. | 316,443 |
724 | Teleflex, Inc. | 133,759 | |
337 | The Cigna Group | 104,200 | |
807 | 1 | Vertex Pharmaceuticals, Inc. | 292,223 |
TOTAL | 13,622,111 | ||
Industrials—5.5% | |||
4,048 | 3M Co. | 368,166 | |
1,710 | AGCO Corp. | 196,069 | |
1,571 | Allegion PLC | 154,524 | |
6,772 | Allison Transmission Holdings, Inc. | 341,444 | |
5,504 | Booz Allen Hamilton Holding Corp. | 660,095 | |
2,121 | 1 | Builders Firstsource, Inc. | 230,171 |
2,601 | Caterpillar, Inc. | 587,956 | |
1,257 | L3Harris Technologies, Inc. | 225,518 | |
2,095 | Lennox International, Inc. | 776,281 | |
343 | Lockheed Martin Corp. | 155,941 | |
1,342 | Manpower, Inc. | 93,900 | |
2,489 | Otis Worldwide Corp. | 192,176 | |
9,954 | Paychex, Inc. | 1,105,392 | |
5,915 | Pentair PLC | 343,780 | |
17,484 | Pitney Bowes, Inc. | 56,473 | |
592 | Rockwell Automation, Inc. | 155,583 | |
984 | Ryder System, Inc. | 95,979 | |
6,476 | 1 | SPX Technologies, Inc. | 518,857 |
2,168 | Trane Technologies PLC | 412,592 | |
3,184 | TransUnion | 139,714 | |
12,099 | 1 | Uber Technologies, Inc. | 523,645 |
11,178 | 1 | United Airlines Holdings, Inc. | 391,342 |
259 | 1 | United Rentals, Inc. | 105,224 |
6,890 | Verisk Analytics, Inc. | 1,566,510 | |
1,443 | 1 | Willscot Corp. | 56,869 |
7,809 | 1 | XPO, Inc. | 592,000 |
TOTAL | 10,046,201 | ||
Information Technology—13.6% | |||
252 | 1 | Adobe, Inc. | 134,079 |
21,293 | Apple, Inc. | 3,636,206 | |
2,550 | 1 | Arista Networks, Inc. | 510,943 |
3
Shares or Principal Amount | Value | ||
COMMON STOCKS—continued | |||
Information Technology—continued | |||
2,290 | 1 | Box, Inc. | $ 56,929 |
1,931 | 1 | Braze, Inc. | 82,222 |
2,160 | Broadcom, Inc. | 1,817,359 | |
3,897 | 1 | Cadence Design Systems, Inc. | 934,695 |
3,677 | 1 | Cerence, Inc. | 56,295 |
4,701 | 1 | Cirrus Logic, Inc. | 314,638 |
17,337 | Cisco Systems, Inc. | 903,778 | |
2,931 | 1 | Commvault Systems, Inc. | 191,541 |
4,264 | 1 | Confluent, Inc. | 123,272 |
5,370 | 1 | Crowdstrike Holdings, Inc. | 949,255 |
13,280 | Dell Technologies, Inc. | 888,565 | |
14,042 | 1 | DXC Technology Co. | 283,227 |
11,368 | 1 | Enphase Energy, Inc. | 904,665 |
945 | 1 | F5, Inc. | 143,253 |
14,151 | Hewlett Packard Enterprise Co. | 217,642 | |
866 | 1 | HubSpot, Inc. | 366,985 |
12,243 | Microsoft Corp. | 4,139,481 | |
1,386 | 1 | MongoDB, Inc. | 477,602 |
9,967 | 1 | Nutanix, Inc. | 360,706 |
4,222 | NVIDIA Corp. | 1,721,732 | |
742 | 1 | Palo Alto Networks, Inc. | 180,321 |
18,478 | Pegasystems, Inc. | 789,750 | |
18,409 | 1 | Pure Storage, Inc. | 622,408 |
5,436 | 1 | Salesforce, Inc. | 1,091,712 |
2,162 | 1 | ServiceNow, Inc. | 1,257,960 |
4,307 | Skyworks Solutions, Inc. | 373,589 | |
523 | 1 | Synopsys, Inc. | 245,517 |
7,238 | Vishay Intertechnology, Inc. | 160,973 | |
1,978 | 1 | Workday, Inc. | 418,762 |
9,197 | Xerox Holdings Corp. | 118,089 | |
7,974 | 1 | Zoom Video Communications, Inc. | 478,281 |
TOTAL | 24,952,432 | ||
Materials—1.6% | |||
6,207 | Albemarle Corp. | 786,924 | |
2,792 | 1 | Berry Global Group, Inc. | 153,560 |
254 | Linde PLC | 97,069 | |
29,644 | Newmont Corp. | 1,110,761 | |
1,951 | Nucor Corp. | 288,338 | |
453 | Sherwin-Williams Co. | 107,909 | |
2,236 | Steel Dynamics, Inc. | 238,156 | |
4,433 | United States Steel Corp. | 150,234 | |
TOTAL | 2,932,951 | ||
Real Estate—3.0% | |||
14,600 | American Homes 4 Rent | 478,004 | |
1,300 | Avalonbay Communities, Inc. | 215,462 | |
2,000 | Boston Properties, Inc. | 107,140 | |
6,500 | Brixmor Property Group, Inc. | 135,135 | |
2,700 | Digital Realty Trust, Inc. | 335,772 | |
2,750 | EastGroup Properties, Inc. | 448,938 | |
7,700 | EPR PPTYS | 328,790 |
4
Shares or Principal Amount | Value | ||
COMMON STOCKS—continued | |||
Real Estate—continued | |||
700 | Equinix, Inc. | $ 510,748 | |
1,600 | Equity Residential Properties Trust | 88,528 | |
11,400 | Invitation Homes, Inc. | 338,466 | |
14,000 | Kite Realty Group Trust | 298,480 | |
3,800 | ProLogis, Inc. | 382,850 | |
3,500 | Rexford Industrial Realty, Inc. | 151,340 | |
3,900 | Ryman Hospitality Properties, Inc. | 333,840 | |
2,000 | Simon Property Group, Inc. | 219,780 | |
1,000 | Sun Communities, Inc. | 111,240 | |
2,500 | UDR, Inc. | 79,525 | |
12,900 | VICI Properties, Inc. | 359,910 | |
7,300 | Welltower, Inc. | 610,353 | |
TOTAL | 5,534,301 | ||
Utilities—1.3% | |||
9,297 | Constellation Energy Corp. | 1,049,817 | |
8,546 | Exelon Corp. | 332,781 | |
32,690 | Vistra Corp. | 1,069,617 | |
TOTAL | 2,452,215 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $95,079,926) | 102,068,295 | ||
CORPORATE BONDS—10.5% | |||
Basic Industry - Chemicals—0.0% | |||
$ 10,000 | DuPont de Nemours, Inc., Sr. Unsecd. Note, 5.319%, 11/15/2038 | 8,948 | |
Basic Industry - Metals & Mining—0.1% | |||
200,000 | Anglo American Capital PLC, Sr. Unsecd. Note, 144A, 5.500%, 5/2/2033 | 181,920 | |
15,000 | Anglogold Ashanti Holdings PLC, Sr. Note, 6.500%, 4/15/2040 | 12,990 | |
TOTAL | 194,910 | ||
Capital Goods - Aerospace & Defense—0.6% | |||
200,000 | BAE Systems PLC, Sr. Unsecd. Note, 144A, 3.000%, 9/15/2050 | 115,681 | |
275,000 | Boeing Co., Sr. Unsecd. Note, 4.875%, 5/1/2025 | 270,242 | |
110,000 | Huntington Ingalls Industries, Inc., Sr. Unsecd. Note, Series WI, 3.844%, 5/1/2025 | 106,496 | |
300,000 | Leidos, Inc., Sr. Unsecd. Note, Series WI, 2.300%, 2/15/2031 | 225,749 | |
170,000 | Leidos, Inc., Sr. Unsecd. Note, Series WI, 3.625%, 5/15/2025 | 162,978 | |
15,000 | Spirit AeroSystems, Inc., Sr. Unsecd. Note, 4.600%, 6/15/2028 | 11,882 | |
40,000 | 2 | Textron Financial Corp., Jr. Sub. Note, 144A, 7.361% (CME Term SOFR 3 Month +1.996%), 2/15/2042 | 31,285 |
50,000 | Textron, Inc., Sr. Unsecd. Note, 4.000%, 3/15/2026 | 47,881 | |
50,000 | Textron, Inc., Sr. Unsecd. Note, 4.300%, 3/1/2024 | 49,716 | |
TOTAL | 1,021,910 | ||
Capital Goods - Building Materials—0.1% | |||
200,000 | Allegion US Holdings Co., Inc., Sr. Unsecd. Note, 3.200%, 10/1/2024 | 194,526 | |
Capital Goods - Construction Machinery—0.2% | |||
205,000 | Ashtead Capital, Inc., Sr. Unsecd. Note, 144A, 5.550%, 5/30/2033 | 183,844 | |
255,000 | CNH Industrial Capital America LLC, Sr. Unsecd. Note, 4.550%, 4/10/2028 | 239,755 | |
TOTAL | 423,599 | ||
Capital Goods - Diversified Manufacturing—0.1% | |||
60,000 | Lennox International, Inc., Sr. Unsecd. Note, 1.700%, 8/1/2027 | 51,464 | |
175,000 | Roper Technologies, Inc., Sr. Unsecd. Note, 2.000%, 6/30/2030 | 135,716 | |
TOTAL | 187,180 | ||
Communications - Cable & Satellite—0.2% | |||
300,000 | Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., Sec. Fac. Bond, 2.250%, 1/15/2029 | 243,012 |
5
Shares or Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Communications - Cable & Satellite—continued | |||
$ 145,000 | Comcast Corp., Sr. Unsecd. Note, 2.800%, 1/15/2051 | $ 79,307 | |
15,000 | Comcast Corp., Sr. Unsecd. Note, 3.900%, 3/1/2038 | 11,644 | |
10,000 | Comcast Corp., Sr. Unsecd. Note, 4.400%, 8/15/2035 | 8,513 | |
TOTAL | 342,476 | ||
Communications - Media & Entertainment—0.0% | |||
30,000 | Grupo Televisa S.A., Sr. Unsecd. Note, 6.125%, 1/31/2046 | 26,188 | |
Communications - Telecom Wireless—0.4% | |||
150,000 | Crown Castle, Inc., Sr. Unsecd. Note, 3.700%, 6/15/2026 | 141,052 | |
350,000 | Crown Castle, Inc., Sr. Unsecd. Note, 5.100%, 5/1/2033 | 311,113 | |
300,000 | T-Mobile USA, Inc., Sr. Unsecd. Note, 5.050%, 7/15/2033 | 271,222 | |
TOTAL | 723,387 | ||
Communications - Telecom Wirelines—0.2% | |||
12,000 | AT&T, Inc., Sr. Unsecd. Note, 3.500%, 9/15/2053 | 7,072 | |
300,000 | AT&T, Inc., Sr. Unsecd. Note, 3.650%, 6/1/2051 | 184,780 | |
11,000 | AT&T, Inc., Sr. Unsecd. Note, 3.650%, 9/15/2059 | 6,369 | |
5,000 | AT&T, Inc., Sr. Unsecd. Note, 4.500%, 5/15/2035 | 4,171 | |
150,000 | Telefonica Emisiones SAU, Sr. Unsecd. Note, 5.520%, 3/1/2049 | 118,417 | |
90,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 3.150%, 3/22/2030 | 75,530 | |
TOTAL | 396,339 | ||
Consumer Cyclical - Automotive—0.2% | |||
175,000 | General Motors Financial Co., Inc., Sr. Unsecd. Note, 3.100%, 1/12/2032 | 133,146 | |
10,000 | General Motors Financial Co., Inc., Sr. Unsecd. Note, 3.950%, 4/13/2024 | 9,890 | |
175,000 | General Motors Financial Co., Inc., Sr. Unsecd. Note, 5.850%, 4/6/2030 | 165,472 | |
10,000 | Mercedes-Benz Finance NA LLC, Co. Guarantee, 8.500%, 1/18/2031 | 11,567 | |
TOTAL | 320,075 | ||
Consumer Cyclical - Retailers—0.3% | |||
170,000 | AutoNation, Inc., Sr. Unsecd. Note, 4.750%, 6/1/2030 | 148,985 | |
250,000 | AutoZone, Inc., Sr. Unsecd. Note, 3.250%, 4/15/2025 | 240,920 | |
250,000 | WalMart, Inc., Sr. Unsecd. Note, 4.500%, 4/15/2053 | 203,154 | |
TOTAL | 593,059 | ||
Consumer Cyclical - Services—0.1% | |||
125,000 | Amazon.com, Inc., Sr. Unsecd. Note, 3.800%, 12/5/2024 | 122,853 | |
15,000 | Expedia Group, Inc., Sr. Unsecd. Note, Series WI, 3.250%, 2/15/2030 | 12,427 | |
10,000 | University of Southern California, Sr. Unsecd. Note, 5.250%, 10/1/2111 | 8,454 | |
70,000 | Visa, Inc., Sr. Unsecd. Note, 3.150%, 12/14/2025 | 66,813 | |
15,000 | Visa, Inc., Sr. Unsecd. Note, 4.150%, 12/14/2035 | 13,082 | |
TOTAL | 223,629 | ||
Consumer Non-Cyclical - Food/Beverage—0.5% | |||
30,000 | Anheuser-Busch Cos LLC / Anheuser-Busch InBev Worldwide, Inc., Sr. Unsecd. Note, 4.700%, 2/1/2036 | 26,417 | |
300,000 | Constellation Brands, Inc., Sr. Unsecd. Note, 4.900%, 5/1/2033 | 271,095 | |
300,000 | Danone SA, Sr. Unsecd. Note, 144A, 2.947%, 11/2/2026 | 278,395 | |
270,000 | Heineken NV, Sr. Unsecd. Note, 144A, 3.500%, 1/29/2028 | 248,934 | |
15,000 | Kraft Heinz Foods Co., Sr. Unsecd. Note, 5.200%, 7/15/2045 | 12,405 | |
TOTAL | 837,246 | ||
Consumer Non-Cyclical - Health Care—0.2% | |||
15,000 | CVS Health Corp., Sr. Unsecd. Note, 4.100%, 3/25/2025 | 14,686 | |
105,000 | GE Healthcare Holding LLC, Sr. Unsecd. Note, 6.377%, 11/22/2052 | 101,799 | |
300,000 | HCA, Inc., Sr. Unsecd. Note, 5.500%, 6/1/2033 | 273,829 | |
TOTAL | 390,314 |
6
Shares or Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Consumer Non-Cyclical - Pharmaceuticals—0.2% | |||
$ 500,000 | AbbVie, Inc., Sr. Unsecd. Note, 4.250%, 11/21/2049 | $ 375,531 | |
15,000 | Amgen, Inc., Sr. Unsecd. Note, 4.400%, 5/1/2045 | 11,274 | |
10,000 | Bristol-Myers Squibb Co., Sr. Unsecd. Note, Series WI, 4.125%, 6/15/2039 | 7,947 | |
15,000 | Johnson & Johnson, Sr. Unsecd. Note, 3.550%, 3/1/2036 | 12,283 | |
TOTAL | 407,035 | ||
Consumer Non-Cyclical - Tobacco—0.2% | |||
450,000 | Philip Morris International, Inc., Sr. Unsecd. Note, 5.750%, 11/17/2032 | 430,213 | |
Energy - Independent—0.1% | |||
125,000 | Cimarex Energy Co., Sr. Unsecd. Note, 3.900%, 5/15/2027 | 107,344 | |
20,000 | EQT Corp., Sr. Unsecd. Note, 3.900%, 10/1/2027 | 18,422 | |
125,000 | Ovintiv, Inc., Sr. Unsecd. Note, 7.100%, 7/15/2053 | 119,066 | |
TOTAL | 244,832 | ||
Energy - Integrated—0.5% | |||
135,000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 3.119%, 5/4/2026 | 127,473 | |
300,000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 3.937%, 9/21/2028 | 278,640 | |
170,000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 4.893%, 9/11/2033 | 155,692 | |
5,000 | ConocoPhillips Co., Sr. Unsecd. Note, 4.025%, 3/15/2062 | 3,375 | |
270,000 | Exxon Mobil Corp., Sr. Unsecd. Note, 2.992%, 3/19/2025 | 261,255 | |
TOTAL | 826,435 | ||
Energy - Midstream—0.4% | |||
125,000 | Boardwalk Pipeline Partners LP, Sr. Unsecd. Note, 3.600%, 9/1/2032 | 99,149 | |
115,000 | Energy Transfer LP, Sr. Unsecd. Note, 4.050%, 3/15/2025 | 111,822 | |
75,000 | Energy Transfer LP, Sr. Unsecd. Note, 4.900%, 2/1/2024 | 74,741 | |
20,000 | Energy Transfer LP, Sr. Unsecd. Note, 5.500%, 6/1/2027 | 19,514 | |
10,000 | Energy Transfer LP, Sr. Unsecd. Note, 6.125%, 12/15/2045 | 8,648 | |
170,000 | Enterprise Products Operating LLC, Sr. Unsecd. Note, 3.950%, 2/15/2027 | 160,968 | |
20,000 | Kinder Morgan Energy Partners LP, Sr. Unsecd. Note, Series MTN, 6.950%, 1/15/2038 | 19,850 | |
40,000 | MPLX LP, Sr. Unsecd. Note, 4.125%, 3/1/2027 | 37,578 | |
5,000 | MPLX LP, Sr. Unsecd. Note, 4.500%, 4/15/2038 | 3,899 | |
190,000 | ONEOK, Inc., Sr. Unsecd. Note, 6.100%, 11/15/2032 | 183,191 | |
70,000 | Targa Resources, Inc., Sr. Unsecd. Note, 4.200%, 2/1/2033 | 58,060 | |
TOTAL | 777,420 | ||
Energy - Refining—0.0% | |||
15,000 | HF Sinclair Corp., Sr. Unsecd. Note, 5.875%, 4/1/2026 | 14,796 | |
15,000 | Marathon Petroleum Corp., Sr. Unsecd. Note, 4.500%, 4/1/2048 | 10,700 | |
10,000 | Marathon Petroleum Corp., Sr. Unsecd. Note, 6.500%, 3/1/2041 | 9,499 | |
15,000 | Valero Energy Corp., Sr. Unsecd. Note, 4.350%, 6/1/2028 | 14,049 | |
TOTAL | 49,044 | ||
Financial Institution - Banking—2.2% | |||
350,000 | Bank of America Corp., Sr. Unsecd. Note, 5.288%, 4/25/2034 | 316,253 | |
300,000 | Bank of America Corp., Sr. Unsecd. Note, Series GMTN, 3.500%, 4/19/2026 | 283,268 | |
200,000 | Bank of America Corp., Sub. Note, Series L, 3.950%, 4/21/2025 | 193,359 | |
15,000 | Bank of America Corp., Sub. Note, Series MTN, 4.200%, 8/26/2024 | 14,760 | |
15,000 | Bank of America Corp., Sub., Series MTN, 4.450%, 3/3/2026 | 14,368 | |
20,000 | Bank of New York Mellon, N.A., Sr. Unsecd. Note, 3.400%, 5/15/2024 | 19,732 | |
165,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.057%, 1/25/2033 | 127,092 | |
250,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.300%, 4/27/2025 | 240,620 | |
170,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.400%, 5/1/2026 | 159,971 | |
300,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.785%, 3/17/2033 | 243,643 | |
370,000 | Citigroup, Inc., Sr. Unsecd. Note, 5.610%, 9/29/2026 | 365,384 |
7
Shares or Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - Banking—continued | |||
$ 15,000 | Citigroup, Inc., Sub. Note, 4.450%, 9/29/2027 | $ 13,862 | |
30,000 | Comerica, Inc., 3.800%, 7/22/2026 | 27,194 | |
75,000 | Fifth Third Bancorp, Sr. Unsecd. Note, 3.650%, 1/25/2024 | 74,468 | |
250,000 | FNB Corp. (PA), Sr. Unsecd. Note, 5.150%, 8/25/2025 | 240,134 | |
150,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 6.250%, 2/1/2041 | 145,303 | |
10,000 | 3 | JPMorgan Chase & Co., Jr. Sub. Deb., Series X, 6.100%, 10/1/2024 | 9,870 |
25,000 | 3 | JPMorgan Chase & Co., Jr. Sub. Note, Series FF, 5.000%, 8/1/2024 | 24,209 |
15,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 3.882%, 7/24/2038 | 11,484 | |
100,000 | Morgan Stanley, Sr. Unsecd. Note, 2.943%, 1/21/2033 | 76,770 | |
180,000 | Morgan Stanley, Sr. Unsecd. Note, 5.250%, 4/21/2034 | 162,249 | |
15,000 | Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 4.000%, 7/23/2025 | 14,522 | |
240,000 | PNC Financial Services Group, Inc., Sr. Unsecd. Note, 5.582%, 6/12/2029 | 229,871 | |
300,000 | State Street Corp., Sr. Unsecd. Note, 5.159%, 5/18/2034 | 271,431 | |
10,000 | State Street Corp., Sub. Deb., 3.031%, 11/1/2034 | 8,263 | |
300,000 | Truist Financial Corp., Sr. Unsecd. Note, Series MTN, 5.867%, 6/8/2034 | 273,034 | |
300,000 | US Bancorp, Sr. Unsecd. Note, 5.836%, 6/12/2034 | 276,451 | |
250,000 | US Bancorp, Sr. Unsecd. Note, Series MTN, 1.375%, 7/22/2030 | 177,713 | |
10,000 | Wells Fargo & Co., Series MTN, 4.100%, 6/3/2026 | 9,446 | |
10,000 | Westpac Banking Corp., Sub., Series GMTN, 4.322%, 11/23/2031 | 9,232 | |
TOTAL | 4,033,956 | ||
Financial Institution - Broker/Asset Mgr/Exchange—0.1% | |||
80,000 | Invesco Finance PLC, Sr. Unsecd. Note, 3.750%, 1/15/2026 | 76,481 | |
70,000 | Nuveen LLC, Sr. Unsecd. Note, 144A, 4.000%, 11/1/2028 | 64,543 | |
TOTAL | 141,024 | ||
Financial Institution - Finance Companies—0.2% | |||
150,000 | AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 4.875%, 1/16/2024 | 149,538 | |
220,000 | Air Lease Corp., Sr. Unsecd. Note, 5.850%, 12/15/2027 | 215,082 | |
TOTAL | 364,620 | ||
Financial Institution - Insurance - Health—0.1% | |||
300,000 | UnitedHealth Group, Inc., Sr. Unsecd. Note, 4.750%, 5/15/2052 | 240,388 | |
Financial Institution - Insurance - Life—0.3% | |||
400,000 | AIA Group Ltd., Sub., 144A, 3.200%, 9/16/2040 | 258,604 | |
15,000 | MetLife, Inc., Jr. Sub. Note, 6.400%, 12/15/2036 | 14,090 | |
10,000 | MetLife, Inc., Jr. Sub. Note, 10.750%, 8/1/2039 | 12,640 | |
250,000 | MetLife, Inc., Sr. Unsecd. Note, 3.600%, 4/10/2024 | 247,467 | |
15,000 | Penn Mutual Life Insurance Co., Sr. Note, 144A, 7.625%, 6/15/2040 | 14,952 | |
50,000 | Prudential Financial, Inc., Sr. Unsecd. Note, Series MTN, 6.200%, 11/15/2040 | 46,422 | |
TOTAL | 594,175 | ||
Financial Institution - Insurance - P&C—0.0% | |||
10,000 | Berkshire Hathaway Finance Corp., Sr. Unsecd. Note, 4.200%, 8/15/2048 | 7,666 | |
55,000 | Nationwide Mutual Insurance Co., Sub., 144A, 4.350%, 4/30/2050 | 37,046 | |
TOTAL | 44,712 | ||
Financial Institution - REIT - Apartment—0.1% | |||
200,000 | UDR, Inc., Sr. Unsecd. Note, Series MTN, 2.100%, 8/1/2032 | 141,552 | |
70,000 | UDR, Inc., Sr. Unsecd. Note, Series MTN, 2.950%, 9/1/2026 | 64,752 | |
TOTAL | 206,304 | ||
Financial Institution - REIT - Healthcare—0.1% | |||
185,000 | Welltower, Inc., Sr. Unsecd. Note, 2.700%, 2/15/2027 | 167,158 | |
Financial Institution - REIT - Office—0.0% | |||
70,000 | Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 3.950%, 1/15/2028 | 64,224 |
8
Shares or Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - REIT - Other—0.1% | |||
$ 75,000 | WP Carey, Inc., Sr. Unsecd. Note, 4.600%, 4/1/2024 | $ 74,428 | |
Financial Institution - REITs—0.0% | |||
60,000 | Camden Property Trust, Sr. Unsecd. Note, 2.800%, 5/15/2030 | 49,649 | |
Midstream—0.0% | |||
10,000 | Western Gas Partners LP, Sr. Unsecd. Note, 4.750%, 8/15/2028 | 9,312 | |
Technology—0.7% | |||
10,000 | Apple, Inc., Sr. Unsecd. Note, 3.850%, 5/4/2043 | 7,740 | |
70,000 | Broadcom, Inc., Sr. Unsecd. Note, 144A, 3.750%, 2/15/2051 | 44,670 | |
220,000 | Broadcom, Inc., Sr. Unsecd. Note, 144A, 4.150%, 4/15/2032 | 186,215 | |
20,000 | Corning, Inc., Unsecd. Note, 4.750%, 3/15/2042 | 16,349 | |
240,000 | Dell International LLC / EMC Corp., Sr. Unsecd. Note, 6.020%, 6/15/2026 | 240,362 | |
110,000 | Fiserv, Inc., Sr. Unsecd. Note, 3.500%, 7/1/2029 | 96,529 | |
265,000 | Intel Corp., Sr. Unsecd. Note, 3.400%, 3/25/2025 | 257,146 | |
7,000 | Microsoft Corp., Sr. Unsecd. Note, 2.921%, 3/17/2052 | 4,325 | |
8,000 | Microsoft Corp., Sr. Unsecd. Note, 3.450%, 8/8/2036 | 6,528 | |
500,000 | Oracle Corp., Sr. Unsecd. Note, 6.250%, 11/9/2032 | 495,530 | |
TOTAL | 1,355,394 | ||
Technology Services—0.0% | |||
5,000 | Global Payments, Inc., Sr. Unsecd. Note, 3.200%, 8/15/2029 | 4,198 | |
Transportation - Airlines—0.1% | |||
30,000 | Delta Air Lines, Inc., Sr. Unsecd. Note, 2.900%, 10/28/2024 | 28,830 | |
110,000 | Southwest Airlines Co., Sr. Unsecd. Note, 5.250%, 5/4/2025 | 108,508 | |
TOTAL | 137,338 | ||
Transportation - Railroads—0.1% | |||
225,000 | Canadian Pacific Railway Co., Sr. Unsecd. Note, 3.125%, 6/1/2026 | 211,109 | |
Transportation - Services—0.2% | |||
15,000 | Enterprise Rent-A-Car USA Finance Co., Sr. Unsecd. Note, 144A, 5.625%, 3/15/2042 | 13,505 | |
20,000 | FedEx Corp., Sr. Unsecd. Note, 3.900%, 2/1/2035 | 16,137 | |
210,000 | Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 5.550%, 5/1/2028 | 202,317 | |
125,000 | United Parcel Service, Inc., Sr. Unsecd. Note, 3.900%, 4/1/2025 | 122,080 | |
TOTAL | 354,039 | ||
Utility - Electric—1.2% | |||
200,000 | Alabama Power Co., Sr. Unsecd. Note, 3.000%, 3/15/2052 | 112,976 | |
90,000 | Ameren Corp., Sr. Unsecd. Note, 1.950%, 3/15/2027 | 79,695 | |
70,000 | Electricite de France SA, Note, 144A, 5.600%, 1/27/2040 | 60,662 | |
300,000 | Electricite de France SA, Sr. Unsecd. Note, 144A, 4.500%, 9/21/2028 | 278,673 | |
140,000 | Emera US Finance LP, Sr. Unsecd. Note, 4.750%, 6/15/2046 | 97,971 | |
170,000 | EverSource Energy, Sr. Unsecd. Note, 3.350%, 3/15/2026 | 160,199 | |
200,000 | Exelon Corp., Sr. Unsecd. Note, 3.400%, 4/15/2026 | 189,689 | |
110,000 | National Rural Utilities Cooperative Finance Corp., Sr. Sub. Note, 5.250%, 4/20/2046 | 104,374 | |
25,000 | National Rural Utilities Cooperative Finance Corp., Sr. Unsecd. Note, Series MTNC, 8.000%, 3/1/2032 | 27,661 | |
250,000 | PPL Capital Funding, Inc., Sr. Unsecd. Note, 3.100%, 5/15/2026 | 233,860 | |
175,000 | Southern Co., Sr. Unsecd. Note, 3.250%, 7/1/2026 | 163,630 | |
250,000 | Virginia Electric & Power Co., Sr. Unsecd. Note, 5.450%, 4/1/2053 | 213,360 | |
300,000 | WEC Energy Group, Inc., Sr. Unsecd. Note, 1.800%, 10/15/2030 | 224,592 | |
170,000 | WEC Energy Group, Inc., Sr. Unsecd. Note, 5.150%, 10/1/2027 | 165,949 | |
TOTAL | 2,113,291 | ||
Utility - Natural Gas—0.3% | |||
445,000 | National Fuel Gas Co., Sr. Unsecd. Note, 5.500%, 1/15/2026 | 436,612 |
9
Shares or Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Utility - Natural Gas—continued | |||
$ 5,000 | TransCanada PipeLines Ltd., Sr. Unsecd. Note, 6.200%, 10/15/2037 | $ 4,667 | |
TOTAL | 441,279 | ||
Utility - Other—0.1% | |||
125,000 | National Grid-SP PLC, Sr. Unsecd. Note, 5.602%, 6/12/2028 | 122,110 | |
TOTAL CORPORATE BONDS (IDENTIFIED COST $21,785,626) | 19,347,473 | ||
U.S. TREASURIES—5.0% | |||
U.S. Treasury Bond—1.9% | |||
1,200,000 | 4 | United States Treasury Bond, 2.000%, 8/15/2051 | 648,375 |
780,000 | United States Treasury Bond, 2.250%, 2/15/2052 | 448,866 | |
125,000 | United States Treasury Bond, 3.000%, 8/15/2052 | 85,770 | |
50,000 | United States Treasury Bond, 3.250%, 5/15/2042 | 38,055 | |
225,000 | United States Treasury Bond, 3.375%, 8/15/2042 | 173,988 | |
400,000 | United States Treasury Bond, 3.625%, 5/15/2053 | 311,896 | |
2,075,000 | United States Treasury Bond, 4.125%, 8/15/2053 | 1,775,420 | |
TOTAL | 3,482,370 | ||
U.S. Treasury Note—3.1% | |||
250,000 | United States Treasury Note, 1.250%, 12/31/2026 | 223,797 | |
250,000 | United States Treasury Note, 1.875%, 2/28/2027 | 227,084 | |
800,000 | United States Treasury Note, 2.375%, 3/31/2029 | 704,481 | |
275,000 | United States Treasury Note, 2.500%, 3/31/2027 | 254,717 | |
400,000 | United States Treasury Note, 2.750%, 7/31/2027 | 371,040 | |
500,000 | United States Treasury Note, 2.750%, 5/31/2029 | 447,690 | |
850,000 | United States Treasury Note, 2.875%, 4/30/2029 | 767,394 | |
550,000 | United States Treasury Note, 3.125%, 8/31/2029 | 500,214 | |
175,000 | United States Treasury Note, 3.875%, 8/15/2033 | 161,055 | |
100,000 | United States Treasury Note, 4.000%, 2/28/2030 | 94,976 | |
600,000 | United States Treasury Note, 4.000%, 7/31/2030 | 568,473 | |
600,000 | United States Treasury Note, 4.125%, 9/30/2027 | 584,076 | |
820,000 | United States Treasury Note, 4.125%, 7/31/2028 | 795,429 | |
TOTAL | 5,700,426 | ||
TOTAL U.S. TREASURIES (IDENTIFIED COST $10,732,805) | 9,182,796 | ||
ASSET-BACKED SECURITIES—2.8% | |||
Auto Receivables—1.2% | |||
300,000 | Ford Credit Auto Owner Trust/Ford Credit 2023-2, Class SUB, 5.920%, 2/15/2036 | 292,988 | |
100,000 | Navistar Financial Dealer Note Master Trust 2023-1, Class A, 6.180%, 8/25/2028 | 99,702 | |
216,346 | Santander Bank Auto Credit-Linked Notes 2022-B, Class D, 6.793%, 8/16/2032 | 213,526 | |
300,000 | Santander Drive Auto Receivables Trust 2023-1, Class C, 5.090%, 5/15/2030 | 293,719 | |
250,000 | Santander Drive Auto Receivables Trust 2023-3, Class C, 5.770%, 11/15/2030 | 246,694 | |
225,000 | SFS Auto Receivables Securitization Trust 2023-1A, Class C, 5.970%, 2/20/2031 | 219,873 | |
250,000 | Tesla Auto Lease Trust 2023-A, Class B, 6.410%, 7/20/2027 | 249,290 | |
250,000 | Toyota Auto Loan Extended Note 2023-1A, Class A, 4.930%, 6/25/2036 | 240,642 | |
308,764 | Toyota Auto Receivables Owner Trust 2020-B, Class A4, 1.660%, 9/15/2025 | 305,481 | |
90,000 | World Omni Auto Receivables Trust 2021-A, Class C, 0.890%, 8/16/2027 | 83,414 | |
TOTAL | 2,245,329 | ||
Credit Card—0.4% | |||
345,000 | First National Master Note Trust 2023-1, Class A, 5.130%, 4/15/2029 | 337,813 | |
400,000 | Master Credit Card Trust 2022-2A, Class C, 2.730%, 7/21/2028 | 349,927 | |
TOTAL | 687,740 |
10
Shares or Principal Amount | Value | ||
ASSET-BACKED SECURITIES—continued | |||
Equipment Lease—0.8% | |||
$ 200,000 | Dell Equipment Finance Trust 2023-2, Class C, 6.060%, 1/22/2029 | $ 197,687 | |
200,000 | DLLMT LLC 2023-1A, Class A4, 5.350%, 3/20/2031 | 196,216 | |
500,000 | HPEFS Equipment Trust 2022-1A, Class C, 1.960%, 5/21/2029 | 480,110 | |
300,000 | Kubota Credit Owner Trust 2023-2A, Class A4, 5.230%, 6/15/2028 | 294,799 | |
300,000 | MMAF Equipment Finance LLC 2023-A, Class A4, 5.500%, 12/13/2038 | 295,092 | |
TOTAL | 1,463,904 | ||
Other—0.3% | |||
450,000 | PFS Financing Corp. 2020-G, Class A, 0.970%, 2/15/2026 | 444,373 | |
225,000 | PFS Financing Corp. 2023-B, Class A, 5.270%, 5/15/2028 | 221,173 | |
TOTAL | 665,546 | ||
Student Loans—0.1% | |||
194,408 | Navient Student Loan Trust 2021-A, Class A, 0.840%, 5/15/2069 | 166,376 | |
TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $5,403,650) | 5,228,895 | ||
COMMERCIAL MORTGAGE-BACKED SECURITIES—0.5% | |||
Commercial Mortgage—0.2% | |||
200,000 | BMO Mortgage Trust 2023-5C1, Class A3, 6.534%, 8/15/2056 | 200,482 | |
200,000 | BMO Mortgage Trust 2023-C4, Class A5, 5.116%, 2/15/2056 | 182,347 | |
TOTAL | 382,829 | ||
Federal Home Loan Mortgage Corporation—0.3% | |||
17,345 | Federal Home Loan Mortgage Corp. REMIC, Series K055, Class A1, 2.263%, 4/25/2025 | 16,947 | |
235,694 | Federal Home Loan Mortgage Corp. REMIC, Series K106, Class A1, 1.783%, 10/25/2029 | 205,642 | |
350,000 | Federal Home Loan Mortgage Corp. REMIC, Series K737, Class A2, 2.525%, 10/25/2026 | 322,605 | |
TOTAL | 545,194 | ||
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $1,027,042) | 928,023 | ||
COLLATERALIZED MORTGAGE OBLIGATIONS—0.4% | |||
Commercial Mortgage—0.3% | |||
150,000 | Bank 2023-BNK46, Class A4, 5.745%, 8/15/2056 | 142,652 | |
190,000 | Bank, Class A4, 3.488%, 11/15/2050 | 170,166 | |
200,000 | JPMDB Commercial Mortgage Securities Trust 2016-C4, Class A3, 3.141%, 12/15/2049 | 181,062 | |
TOTAL | 493,880 | ||
Federal Home Loan Mortgage Corporation—0.0% | |||
1,538 | Federal Home Loan Mortgage Corp. REMIC, Series 2497, Class JH, 6.000%, 9/15/2032 | 1,544 | |
Federal National Mortgage Association—0.0% | |||
228 | Federal National Mortgage Association REMIC, Series 2003-35, Class UC, 3.750%, 5/25/2033 | 221 | |
Non-Agency Mortgage—0.1% | |||
16 | Bear Stearns Mortgage Securities, Inc. 1997-6, Class 1A, 7.051%, 3/25/2031 | 16 | |
385,300 | GS Mortgage-Backed Securities Trust 2023-PJ1, Class A4, 3.500%, 2/25/2053 | 307,818 | |
TOTAL | 307,834 | ||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $904,552) | 803,479 | ||
MORTGAGE-BACKED SECURITIES—0.2% | |||
Federal Home Loan Mortgage Corporation—0.0% | |||
19,867 | Federal Home Loan Mortgage Corp., Pool G07801, 4.000%, 10/1/2044 | 17,742 | |
Federal National Mortgage Association—0.2% | |||
5,090 | Federal National Mortgage Association, Pool 357761, 5.500%, 5/1/2035 | 5,028 | |
545 | Federal National Mortgage Association, Pool 728709, 5.500%, 7/1/2033 | 539 | |
20,549 | Federal National Mortgage Association, Pool 932864, 4.000%, 12/1/2040 | 18,574 | |
35,232 | Federal National Mortgage Association, Pool AB7859, 3.500%, 2/1/2043 | 30,499 | |
27,224 | Federal National Mortgage Association, Pool AD6938, 4.500%, 6/1/2040 | 25,338 |
11
Shares or Principal Amount | Value | ||
MORTGAGE-BACKED SECURITIES—continued | |||
Federal National Mortgage Association—continued | |||
$ 12,432 | Federal National Mortgage Association, Pool AQ0945, 3.000%, 11/1/2042 | $ 10,499 | |
15,369 | Federal National Mortgage Association, Pool AT2127, 3.000%, 4/1/2043 | 12,987 | |
8,080 | Federal National Mortgage Association, Pool AT7861, 3.000%, 6/1/2028 | 7,694 | |
14,605 | Federal National Mortgage Association, Pool BM4388, 4.000%, 8/1/2048 | 12,890 | |
7,976 | Federal National Mortgage Association, Pool BM5024, 3.000%, 11/1/2048 | 6,520 | |
10,525 | Federal National Mortgage Association, Pool BM5246, 3.500%, 11/1/2048 | 8,912 | |
12,668 | Federal National Mortgage Association, Pool CA0833, 3.500%, 12/1/2047 | 10,754 | |
9,587 | Federal National Mortgage Association, Pool CA4427, 3.000%, 10/1/2049 | 7,697 | |
7,018 | Federal National Mortgage Association, Pool FM0008, 3.500%, 8/1/2049 | 5,931 | |
20,824 | Federal National Mortgage Association, Pool FM1000, 3.000%, 4/1/2047 | 17,102 | |
9,499 | Federal National Mortgage Association, Pool FM1221, 3.500%, 7/1/2049 | 8,049 | |
14,973 | Federal National Mortgage Association, Pool MA0500, 5.000%, 8/1/2040 | 14,403 | |
17,880 | Federal National Mortgage Association, Pool MA0666, 4.500%, 3/1/2041 | 16,603 | |
21,320 | Federal National Mortgage Association, Pool MA1430, 3.000%, 5/1/2043 | 17,980 | |
20,181 | Federal National Mortgage Association, Pool MA2803, 2.500%, 11/1/2031 | 18,459 | |
TOTAL | 256,458 | ||
Government National Mortgage Association—0.0% | |||
12,182 | Government National Mortgage Association, Pool MA0625, 3.500%, 12/20/2042 | 10,672 | |
7,787 | Government National Mortgage Association, Pool MA1376, 4.000%, 10/20/2043 | 7,012 | |
TOTAL | 17,684 | ||
TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $338,390) | 291,884 | ||
GOVERNMENT AGENCY—0.1% | |||
Federal National Mortgage Association—0.1% | |||
250,000 | Federal National Mortgage Association Notes, 0.625%, 4/22/2025 (IDENTIFIED COST $249,846) | 233,661 | |
MUNICIPAL BOND—0.0% | |||
30,000 | Texas State Transportation Commission - State Highway Fund, 5.178%, 4/1/2030 (IDENTIFIED COST $32,709) | 29,394 | |
EXCHANGE-TRADED FUNDS—7.7% | |||
40,700 | iShares Core MSCI Emerging Markets ETF | 1,869,758 | |
182,000 | 5 | iShares MSCI EAFE ETF | 12,179,440 |
Total Exchange-Traded Funds (IDENTIFIED COST $14,149,904) | 14,049,198 | ||
INVESTMENT COMPANIES—18.5% | |||
1,374 | Bank Loan Core Fund | 11,935 | |
176,841 | Emerging Markets Core Fund | 1,340,455 | |
3,291,902 | Federated Hermes Government Obligations Fund, Premier Shares, 5.26%6 | 3,291,902 | |
3,211,181 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 5.45%6 | 3,211,181 | |
339,665 | High Yield Bond Core Fund | 1,762,861 | |
2,554,872 | Mortgage Core Fund | 19,749,158 | |
516,264 | Project and Trade Finance Core Fund | 4,527,637 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $37,849,461) | 33,895,129 | ||
TOTAL INVESTMENT IN SECURITIES—101.3% (IDENTIFIED COST $187,553,911) | 186,058,227 | ||
OTHER ASSETS AND LIABILITIES - NET—(1.3)%7 | (2,365,191) | ||
TOTAL NET ASSETS—100% | $183,693,036 |
12
At October 31, 2023, the Fund had the following outstanding futures contracts:
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized Appreciation (Depreciation) |
Long Futures: | ||||
United States Treasury Long Bond Long Futures | 2 | $218,875 | December 2023 | $(21,635) |
United States Treasury Notes 2-Year Long Futures | 26 | $5,262,969 | December 2023 | $(18,958) |
United States Treasury Notes 5-Year Long Futures | 61 | $6,373,070 | December 2023 | $(120,302) |
United States Treasury Notes 10-Year Long Futures | 13 | $1,380,234 | December 2023 | $(48,030) |
United States Treasury Notes 10-Year Ultra Long Futures | 15 | $1,632,422 | December 2023 | $(101,802) |
Short Futures: | ||||
United States Treasury Ultra Bond Short Futures | 12 | $1,350,750 | December 2023 | $190,960 |
NET UNREALIZED DEPRECIATION ON FUTURES CONTRACTS | $(119,767) |
The average notional value of long and short futures contracts held by the Fund throughout the period was $17,666,697 and $1,579,340, respectively. This is based on the contracts held as of each month-end throughout the three-month fiscal period.
Net Unrealized Depreciation on Futures Contracts is included in “Other Assets and Liabilities—Net.”
Transactions with affiliated investment companies, which are funds managed by the Adviser or an affiliate of the Adviser, during the period ended October 31, 2023, were as follows:
Affiliates | Value as of 7/31/2023 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation/ Depreciation | Net Realized Gain/ (Loss) | Value as of 10/31/2023 | Shares Held as of 10/31/2023 | Dividend Income |
Bank Loan Core Fund | $11,640 | $297 | $— | $(2) | $— | $11,935 | 1,374 | $293 |
Emerging Markets Core Fund | $1,790,027 | $31,335 | $(382,000) | $(111,638) | $12,731 | $1,340,455 | 176,841 | $31,236 |
Federated Hermes Government Obligations Fund, Premier Shares* | $404,597 | $59,141,574 | $(56,254,269) | $— | $— | $3,291,902 | 3,291,902 | $17,562 |
Federated Hermes Institutional Prime Value Obliga- tions Fund, Institutional Shares | $2,602,447 | $11,672,841 | $(11,064,305) | $(241) | $439 | $3,211,181 | 3,211,181 | $40,662 |
High Yield Bond Core Fund | $1,929,131 | $31,171 | $(123,000) | $(70,317) | $(4,124) | $1,762,861 | 339,665 | $31,532 |
Mortgage Core Fund | $21,650,227 | $1,166,180 | $(1,515,000) | $(1,460,491) | $(91,758) | $19,749,158 | 2,554,872 | $234,583 |
Project and Trade Finance Core Fund | $4,440,858 | $76,503 | $— | $10,276 | $— | $4,527,637 | 516,264 | $83,134 |
TOTAL OF AFFILIATED TRANSACTIONS | $32,828,927 | $72,119,901 | $(69,338,574) | $(1,632,413) | $(82,712) | $33,895,129 | 10,092,099 | $439,002 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions. |
1 | Non-income-producing security. |
2 | Floating/variable note with current rate and current maturity or next reset date shown. |
3 | Perpetual Bond Security. The maturity date reflects the next call date. |
4 | All or a portion of this security is pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding futures contracts. |
5 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. As of October 31, 2023, securities subject to this type of arrangement and related collateral were as follows: |
Fair Value of Securities Loaned | Collateral Received |
$3,227,752 | $3,291,902 |
6 | 7-day net yield. |
7 | Assets, other than investments in securities, less liabilities. |
Note: The categories of investments are shown as a percentage of total net assets at October 31, 2023.
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
◾ Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
◾ Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by Federated MDTA LLC (the “Adviser”).
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◾ Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.
◾ Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and ask quotations.
◾ Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser.
◾ For securities that are fair valued in accordance with procedures established by and under the general supervision of the Adviser, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.
If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Adviser’s valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion of the Adviser’s valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.
Fair Valuation and Significant Events Procedures
Pursuant to Rule 2a-5 under the Investment Company Act, the Fund’s Board of Trustees (the “Trustees”) has designated the Adviser as the Fund’s valuation designee to perform any fair value determinations for securities and other assets held by the Fund. The Adviser is subject to the Trustees’ oversight and certain reporting and other requirements intended to provide the Trustees the information needed to oversee the Adviser’s fair value determinations.
The Adviser, acting through its Valuation Committee, is responsible for determining the fair value of investments for which market quotations are not readily available. The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser’s affiliated companies and determines fair value and oversees the calculation of the NAV. The Valuation Committee is also authorized to use pricing services to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Adviser. The Trustees periodically review the fair valuations made by the Valuation Committee. The Trustees have also approved the Adviser’s fair valuation and significant events procedures as part of the Fund’s compliance program and will review any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and ask for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Adviser.
The Adviser has also adopted procedures requiring an investment to be priced at its fair value whenever the Valuation Committee determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
◾ With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;
◾ Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;
◾ Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
The Adviser has adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Valuation Committee will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Adviser. The Trustees periodically review fair valuations made in response to significant events.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
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Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used, as of October 31, 2023, in valuing the Fund’s assets carried at fair value:
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | $97,714,766 | $— | $— | $97,714,766 |
International | 4,353,529 | — | — | 4,353,529 |
Debt Securities: | ||||
Corporate Bonds | — | 19,347,473 | — | 19,347,473 |
U.S. Treasuries | — | 9,182,796 | — | 9,182,796 |
Asset-Backed Securities | — | 5,228,895 | — | 5,228,895 |
Commercial Mortgage-Backed Securities | — | 928,023 | — | 928,023 |
Collateralized Mortgage Obligations | — | 803,479 | — | 803,479 |
Mortgage-Backed Securities | — | 291,884 | — | 291,884 |
Government Agencies | — | 233,661 | — | 233,661 |
Municipal Bonds | — | 29,394 | — | 29,394 |
Exchange-Traded Funds | 14,049,198 | — | — | 14,049,198 |
Investment Companies1 | 29,367,492 | — | — | 33,895,129 |
TOTAL SECURITIES | $145,484,985 | $36,045,605 | $— | $186,058,227 |
Other Financial Instruments:2 | ||||
Assets | $190,960 | $— | $— | $190,960 |
Liabilities | (310,727) | — | — | (310,727) |
TOTAL OTHER FINANCIAL INSTRUMENTS | $(119,767) | $— | $— | $(119,767) |
1 | As permitted by U.S. generally accepted accounting principles, an Investment Company valued at $4,527,637 is measured at fair value using the NAV per share practical expedient and has not been categorized in the chart above but is included in the Total column. The price of shares redeemed of Project and Trade Finance Core Fund may be determined as of the closing NAV of the fund up to twenty-four days after receipt of a shareholder redemption request. |
2 | Other financial instruments are futures contracts. |
The following acronym(s) are used throughout this portfolio: | ||
ETF | —Exchange-Traded Fund | |
GMTN | —Global Medium Term Note | |
MTN | —Medium Term Note | |
REIT | —Real Estate Investment Trust | |
REMIC | —Real Estate Mortgage Investment Conduit | |
SOFR | —Secured Overnight Financing Rate |
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