United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-21904
(Investment Company Act File Number)
Federated Hermes MDT Series
_______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, Pennsylvania 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
Peter J. Germain, Esquire
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 07/31/20
Date of Reporting Period: 07/31/20
Item 1. | Reports to Stockholders |
Share Class | Ticker | A | QAACX | C | QCACX | Institutional | QIACX | R6 | QKACX |
Donahue
1 | Please see the footnotes to the line graphs below for definitions of, and further information about, the Russell 3000® Index. |
2 | Morningstar has assigned the Fund to the Morningstar Large Cap Value Funds Average peer group, however, the MLBFA is being used for comparison purposes. The Fund invests in both value and growth stocks and therefore the Fund’s Adviser believes that the MLBFA is more reflective of the Fund’s investment style. Please see the footnotes to the line graphs below for definitions of, and further information about, the MLBFA. |
3 | Small-cap stocks may be less liquid and subject to greater price volatility than large-cap stocks. |
4 | The Russell Top 200® Index measures the performance of the largest cap segment of the U.S. equity universe. The Russell Top 200® Index is a subset of the Russell 3000® Index. It includes approximately 200 of the largest securities based on a combination of their market cap and current index membership and represents approximately 68% of the U.S. market. The Russell Top 200® Index is constructed to provide a comprehensive and unbiased barometer for this very large cap segment and is completely reconstituted annually to ensure new and growing equities are reflected.* |
5 | The Russell Midcap® Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap® Index is a subset of the Russell 1000® Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. The Russell Midcap® Index represents approximately 31% of the total market capitalization of the Russell 1000® companies. The Russell Midcap® Index is constructed to provide a comprehensive and unbiased barometer for the mid-cap segment. The Russell Midcap Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true mid-cap opportunity set.* |
6 | The Russell 2000® Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000® Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000® Index is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set.* |
7 | The Russell 3000® Growth Index measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 3000® Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 3000® Growth Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad growth market. The Russell 3000® Growth Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect growth characteristics.* |
8 | The Russell 3000® Value Index measures the performance of the broad value segment of U.S. equity value universe. It includes those Russell 3000® Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 3000® Value Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad value market. The Russell 3000® Value Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect value characteristics.* |
9 | The Russell Top 200® Growth Index measures the performance of the especially large cap segment of the U.S. equity universe represented by stocks in the largest 200 by market cap. It includes Russell Top 200® Index companies with higher growth earning potential as defined by Russell’s leading style methodology.* |
10 | The Russell Top 200® Value Index measures the performance of the especially large cap segment of the U.S. equity universe represented by stocks in the largest 200 by market cap. It includes Russell Top 200® Index companies with value characteristics as defined by Russell’s leading style methodology.* |
* | The index is unmanaged, and it is not possible to invest directly in an index. |
Federated Hermes MDT All Cap Core Fund - | Institutional Shares | Class C Shares | R3000 | MLBFA |
F | F | I | I | |
7/31/2010 | 10,000 | 10,000 | 10,000 | 10,000 |
7/31/2011 | 11,914 | 11,801 | 12,094 | 11,839 |
7/31/2012 | 12,180 | 11,938 | 12,980 | 12,356 |
7/31/2013 | 16,621 | 16,115 | 16,467 | 15,514 |
7/31/2014 | 19,868 | 19,056 | 19,163 | 17,899 |
7/31/2015 | 21,547 | 20,448 | 21,325 | 19,442 |
7/31/2016 | 21,473 | 20,156 | 22,273 | 19,769 |
7/31/2017 | 24,886 | 23,122 | 25,867 | 22,729 |
7/31/2018 | 30,149 | 27,725 | 30,107 | 26,057 |
7/31/2019 | 32,586 | 29,654 | 32,230 | 27,602 |
7/31/2020 | 35,847 | 32,280 | 35,752 | 29,651 |
■ | Total returns shown for the Class C Shares include the maximum contingent deferred sales charge of 1.00% as applicable. |
1 Year | 5 Years | 10 Years | |
Class A Shares | 3.63% | 9.15% | 12.67% |
Class C Shares | 7.86% | 9.56% | 12.43% |
Institutional Shares | 10.01% | 10.72% | 13.62% |
Class R6 Shares4 | 10.00% | 10.54% | 13.11% |
R3000 | 10.93% | 10.89% | 13.59% |
MLBFA | 7.60% | 9.09% | 12.04% |
1 | Represents a hypothetical investment of $10,000 in the Fund after deducting applicable sales charges: for Class A Shares, the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450); for Class C Shares a 1.00% contingent deferred sales charge would be applied on any redemption less than one year from the purchase date. The Fund’s performance assumes the reinvestment of all dividends and distributions. The R3000 and MLBFA have been adjusted to reflect reinvestment of dividends of securities. |
2 | The R3000 measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. The R3000 is constructed to provide a comprehensive, unbiased, and stable barometer of the broad market and is completely reconstituted annually to ensure new and growing equities are reflected. The index is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. The R3000 is not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund’s performance. |
3 | Morningstar figures represent the average of the total returns reported by all the funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. The Morningstar figures in the Growth of $10,000 line graph are based on historical return information published by Morningstar and reflect the return of the funds comprising the category in the year of publication. Because the funds designated by Morningstar as falling into the category can change over time, the Morningstar figures in the line graph may not match the Morningstar figures in the Average Annual Total Returns table, which reflect the return of the funds that currently comprise the category. |
4 | Prior to September 1, 2016, Class R6 Shares were known as Class R Shares and included 12b-1 fees and certain other expenses. As of September 1, 2016, Class R6 does not include such 12b-1 fees and certain other expenses, and the performance shown above for Class R6 prior to September 1, 2016, reflects the higher Class R expenses. |
Sector Composition | Percentage of Total Net Assets |
Information Technology | 27.2% |
Health Care | 14.7% |
Consumer Discretionary | 11.9% |
Financials | 11.1% |
Communication Services | 8.9% |
Industrials | 8.1% |
Consumer Staples | 7.3% |
Real Estate | 3.1% |
Materials | 2.2% |
Energy | 2.0% |
Utilities | 1.9% |
Securities Lending Collateral2 | 2.0% |
Cash Equivalents3 | 1.6% |
Other Assets and Liabilities—Net4 | (2.0)% |
TOTAL | 100.0% |
1 | Except for Cash Equivalents and Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
2 | Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. |
3 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing cash collateral for securities lending. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares | Value | ||
COMMON STOCKS—98.4% | |||
Communication Services—8.9% | |||
6,736 | Activision Blizzard, Inc. | $556,596 | |
9,446 | 1 | Alphabet, Inc., Class A | 14,055,176 |
1,681 | Cable One, Inc. | 3,063,723 | |
65,486 | 1 | Cars.com, Inc. | 531,746 |
1,575 | 1 | Charter Communications, Inc. | 913,500 |
45,632 | Cogent Communications Holdings, Inc. | 4,111,900 | |
4,832 | 1 | Facebook, Inc. | 1,225,733 |
43,653 | 1 | MSG Networks, Inc. | 416,013 |
8,771 | Meredith Corp. | 125,952 | |
7,046 | 1 | Netflix, Inc. | 3,444,648 |
88,452 | 1 | TripAdvisor, Inc. | 1,789,384 |
31,860 | Verizon Communications, Inc. | 1,831,313 | |
TOTAL | 32,065,684 | ||
Consumer Discretionary—11.9% | |||
3,295 | 1 | Amazon.com, Inc. | 10,427,621 |
1,207 | 1 | AutoZone, Inc. | 1,457,356 |
23,311 | 1 | Cooper-Standard Holding, Inc. | 249,661 |
3,294 | Dollar General Corp. | 627,178 | |
18,524 | Domino’s Pizza, Inc. | 7,161,564 | |
49,006 | eBay, Inc. | 2,709,052 | |
8,335 | 1 | Etsy, Inc. | 986,697 |
35,900 | Ford Motor Co. | 237,299 | |
11,350 | Garmin Ltd. | 1,118,996 | |
53,197 | Goodyear Tire & Rubber Co. | 479,305 | |
11,512 | Home Depot, Inc. | 3,056,321 | |
2,328 | 1 | iRobot Corp. | 169,222 |
21,003 | Lowe’s Cos., Inc. | 3,127,557 | |
1,349 | 1 | Lululemon Athletica Inc. | 439,221 |
279,331 | 2 | Macy’s, Inc. | 1,692,746 |
2,166 | McDonald’s Corp. | 420,810 | |
11,173 | 1 | Mohawk Industries, Inc. | 892,164 |
839 | 1 | O’Reilly Automotive, Inc. | 400,522 |
13,302 | PVH Corp. | 647,275 | |
4,868 | 1 | Ulta Beauty, Inc. | 939,475 |
6,428 | 1,2 | Wayfair, Inc. | 1,710,426 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Consumer Discretionary—continued | |||
23,237 | Wingstop, Inc. | $3,630,781 | |
7,652 | Yum! Brands, Inc. | 696,715 | |
TOTAL | 43,277,964 | ||
Consumer Staples—7.3% | |||
39,144 | 1 | BJ’s Wholesale Club Holdings, Inc. | 1,567,717 |
10,550 | Church and Dwight, Inc. | 1,016,282 | |
18,027 | Clorox Co. | 4,263,566 | |
90,965 | Colgate-Palmolive Co. | 7,022,498 | |
8,897 | Costco Wholesale Corp. | 2,896,240 | |
4,201 | Hershey Foods Corp. | 610,867 | |
41,919 | Kimberly-Clark Corp. | 6,373,365 | |
12,071 | Molson Coors Beverage Company, Class B | 452,904 | |
8,885 | PepsiCo, Inc. | 1,223,109 | |
7,872 | Philip Morris International, Inc. | 604,648 | |
2,887 | Procter & Gamble Co. | 378,544 | |
7,963 | 1 | Sprouts Farmers Market, Inc. | 210,064 |
TOTAL | 26,619,804 | ||
Energy—2.0% | |||
18,060 | Arch Resources, Inc. | 560,221 | |
13,529 | CVR Energy, Inc. | 259,757 | |
17,923 | Cimarex Energy Co. | 438,396 | |
29,353 | Concho Resources, Inc. | 1,542,207 | |
34,012 | 2 | Continental Resources, Inc. | 588,067 |
75,701 | Devon Energy Corp. | 794,103 | |
6,580 | EOG Resources, Inc. | 308,273 | |
22,259 | Helmerich & Payne, Inc. | 396,878 | |
63,055 | Marathon Oil Corp. | 346,172 | |
54,577 | PBF Energy, Inc. | 473,728 | |
77,330 | Peabody Energy Corp. | 241,270 | |
16,289 | Phillips 66 | 1,010,244 | |
4,307 | Valero Energy Corp. | 242,183 | |
TOTAL | 7,201,499 | ||
Financials—11.1% | |||
26,190 | Aflac, Inc. | 931,578 | |
1,846 | Alleghany Corp. | 964,203 | |
51,160 | Allstate Corp. | 4,828,993 | |
3,358 | Ameriprise Financial, Inc. | 515,890 | |
3,925 | Bank of New York Mellon Corp. | 140,711 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Financials—continued | |||
2,734 | BlackRock, Inc. | $1,572,077 | |
5,374 | Chubb Ltd. | 683,788 | |
50,325 | Cincinnati Financial Corp. | 3,921,827 | |
10,919 | Globe Life, Inc. | 869,152 | |
18,837 | Huntington Bancshares, Inc. | 174,619 | |
39,755 | Intercontinental Exchange, Inc. | 3,847,489 | |
12,533 | MSCI, Inc., Class A | 4,712,157 | |
3,517 | Marketaxess Holdings, Inc. | 1,817,234 | |
35,165 | MetLife, Inc. | 1,330,995 | |
12,553 | NASDAQ, Inc. | 1,648,335 | |
17,833 | Northern Trust Corp. | 1,397,216 | |
36,514 | Prudential Financial, Inc. | 2,313,892 | |
5,557 | State Street Corp. | 354,481 | |
60,065 | The Travelers Cos., Inc. | 6,872,637 | |
41,094 | Zions Bancorporation, N.A. | 1,334,322 | |
TOTAL | 40,231,596 | ||
Health Care—14.7% | |||
5,393 | Abbott Laboratories | 542,751 | |
15,510 | 1 | Alexion Pharmaceuticals, Inc. | 1,589,620 |
13,220 | 1 | Allogene Therapeutics, Inc. | 484,777 |
21,475 | Amgen, Inc. | 5,254,288 | |
42,294 | 1 | AnaptysBio, Inc. | 759,600 |
3,511 | Anthem, Inc. | 961,312 | |
10,896 | 1 | Arvinas, Inc. | 343,224 |
13,746 | 1 | Biogen, Inc. | 3,775,889 |
5,794 | 1 | Biohaven Pharmaceutical Holding Co. Ltd. | 371,048 |
4,875 | CIGNA Corp. | 841,864 | |
15,619 | CVS Health Corp. | 983,060 | |
12,175 | 1 | Constellation Pharmaceuticals, Inc. | 327,386 |
761 | Cooper Cos., Inc. | 215,310 | |
11,942 | 1 | Davita, Inc. | 1,043,611 |
12,300 | Dentsply Sirona, Inc. | 548,580 | |
24,860 | Eli Lilly & Co. | 3,736,209 | |
6,572 | Gilead Sciences, Inc. | 456,951 | |
27,024 | 1 | Hologic, Inc. | 1,885,735 |
6,863 | Humana, Inc. | 2,693,384 | |
5,623 | 1 | IDEXX Laboratories, Inc. | 2,236,548 |
10,787 | 1 | Jazz Pharmaceuticals PLC. | 1,167,693 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Health Care—continued | |||
21,860 | Johnson & Johnson | $3,186,314 | |
5,111 | 1 | Kiniksa Pharmaceuticals Ltd. | 99,767 |
17,448 | 1,2 | Livongo Health, Inc. | 2,220,258 |
40,449 | Merck & Co., Inc. | 3,245,628 | |
1,140 | 1 | Molina Healthcare, Inc. | 210,558 |
37,635 | 1 | Myriad Genetics, Inc. | 454,254 |
10,820 | 1 | NextCure, Inc. | 96,514 |
16,307 | 1 | SAGE Therapeutics, Inc. | 743,110 |
6,497 | 1 | United Therapeutics Corp. | 724,221 |
528 | UnitedHealth Group, Inc. | 159,868 | |
15,141 | 1 | Vertex Pharmaceuticals, Inc. | 4,118,352 |
17,111 | 1 | Waters Corp. | 3,647,210 |
26,259 | Zoetis, Inc. | 3,982,965 | |
TOTAL | 53,107,859 | ||
Industrials—8.1% | |||
12,481 | AGCO Corp. | 819,128 | |
18,699 | 1 | Astronics Corp. | 162,681 |
2,914 | Brinks Co. (The) | 129,236 | |
28,412 | 1 | CIRCOR International, Inc. | 744,963 |
8,310 | Curtiss Wright Corp. | 740,587 | |
14,768 | Flowserve Corp. | 411,584 | |
63,132 | Fluor Corp. | 643,315 | |
16,850 | Hexcel Corp. | 628,505 | |
6,124 | Hubbell, Inc. | 826,556 | |
9,617 | Huntington Ingalls Industries, Inc. | 1,670,569 | |
418,872 | KAR Auction Services, Inc. | 6,337,533 | |
7,589 | Lockheed Martin Corp. | 2,876,003 | |
6,024 | Masco Corp. | 344,332 | |
16,823 | Republic Services, Inc. | 1,467,807 | |
11,956 | SPX Corp. | 502,152 | |
179,048 | Spirit AeroSystems Holdings, Inc., Class A | 3,503,969 | |
4,755 | Textron, Inc. | 166,140 | |
3,166 | TransUnion | 283,579 | |
29,251 | Verisk Analytics, Inc. | 5,519,956 | |
1,937 | W.W. Grainger, Inc. | 661,544 | |
12,821 | Xylem, Inc. | 935,677 | |
TOTAL | 29,375,816 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Information Technology—27.2% | |||
11,820 | 1 | Adobe, Inc. | $5,251,862 |
12,822 | Alliance Data Systems Corp. | 568,784 | |
8,643 | Analog Devices, Inc. | 992,649 | |
23,374 | Apple, Inc. | 9,934,885 | |
29,417 | Applied Materials, Inc. | 1,892,396 | |
964 | 1 | Arista Networks, Inc. | 250,418 |
8,473 | 1 | Autodesk, Inc. | 2,003,271 |
5,427 | Automatic Data Processing, Inc. | 721,303 | |
26,936 | Booz Allen Hamilton Holding Corp. | 2,202,287 | |
8,092 | Broadcom, Inc. | 2,563,141 | |
76,462 | 1 | Cadence Design Systems, Inc. | 8,353,474 |
24,778 | 1 | Cirrus Logic, Inc. | 1,698,036 |
1,177 | Citrix Systems, Inc. | 168,029 | |
5,464 | Cognizant Technology Solutions Corp. | 373,300 | |
12,774 | 1 | Crowdstrike Holdings, Inc. | 1,446,017 |
404,865 | DXC Technology Co. | 7,251,132 | |
37,545 | 1 | DocuSign, Inc. | 8,140,882 |
35,888 | 1 | Dynatrace Holdings LLC | 1,501,195 |
3,537 | 1 | FleetCor Technologies Inc. | 914,562 |
6,311 | 1 | Fortinet Inc. | 872,811 |
2,558 | Henry Jack & Associates, Inc. | 456,091 | |
35,311 | 1 | Inphi Corp. | 4,613,735 |
46,303 | Intel Corp. | 2,210,042 | |
3,181 | Intuit, Inc. | 974,563 | |
17,400 | 1 | Keysight Technologies, Inc. | 1,738,086 |
4,878 | Leidos Holdings, Inc. | 464,191 | |
5,562 | Mastercard, Inc. | 1,716,044 | |
45,610 | Microsoft Corp. | 9,350,506 | |
7,153 | NVIDIA Corp. | 3,037,092 | |
1,460 | 1 | Okta, Inc. | 322,631 |
10,749 | Oracle Corp. | 596,032 | |
26,993 | Paychex, Inc. | 1,941,337 | |
18,981 | 1 | PayPal Holdings, Inc. | 3,721,605 |
49,135 | Plantronics, Inc. | 982,209 | |
47,231 | Qualcomm, Inc. | 4,988,066 | |
104,452 | Sabre Corp. | 789,657 | |
2,826 | 1 | Semtech Corp. | 157,493 |
9,888 | 1 | Synopsys, Inc. | 1,969,887 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Information Technology—continued | |||
30,450 | Xerox Holdings Corp. | $506,993 | |
1,428 | Xilinx, Inc. | 153,296 | |
468 | 1 | Zoom Video Communications, Inc. | 118,830 |
4,484 | 1 | Zscaler, Inc. | 582,247 |
TOTAL | 98,491,067 | ||
Materials—2.2% | |||
83,199 | 1 | Alcoa Corp. | 1,081,587 |
52,754 | 1 | Allegheny Technologies, Inc. | 458,432 |
5,404 | 1 | Berry Global Group, Inc. | 270,146 |
149,740 | Chemours Co./The | 2,774,682 | |
44,257 | Domtar, Corp. | 928,954 | |
2,213 | Eastman Chemical Co. | 165,156 | |
5,939 | 1 | Ingevity Corp. | 347,313 |
2,939 | Linde PLC | 720,378 | |
1,214 | Martin Marietta Materials | 251,517 | |
8,212 | PPG Industries, Inc. | 884,022 | |
TOTAL | 7,882,187 | ||
Real Estate—3.1% | |||
6,129 | American Tower Corp. | 1,602,060 | |
8,174 | Coresite Realty Corp. | 1,054,855 | |
2,094 | Crown Castle International Corp. | 349,070 | |
1,975 | Equity Residential Properties Trust | 105,919 | |
170,221 | 2 | Macerich Co. (The) | 1,298,786 |
17,806 | SBA Communications, Corp. | 5,547,281 | |
27,290 | SL Green Realty Corp. | 1,268,985 | |
TOTAL | 11,226,956 | ||
Utilities—1.9% | |||
13,357 | Consolidated Edison Co. | 1,026,218 | |
47,068 | Exelon Corp. | 1,817,296 | |
11,434 | NiSource, Inc. | 279,561 | |
44,479 | OGE Energy Corp. | 1,463,359 | |
2,553 | Pinnacle West Capital Corp. | 212,103 | |
21,917 | Public Service Enterprises Group, Inc. | 1,226,037 | |
53,804 | Vistra Corp. | 1,003,983 | |
TOTAL | 7,028,557 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $304,208,026) | 356,508,989 |
Shares | Value | ||
INVESTMENT COMPANIES—3.6% | |||
7,296,777 | Federated Hermes Government Obligations Fund, Premier Shares, 0.10%3 | $7,296,777 | |
5,676,078 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.21%3 | 5,679,483 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $12,976,781) | 12,976,260 | ||
TOTAL INVESTMENT IN SECURITIES—102.0% (IDENTIFIED COST $317,184,807)4 | 369,485,249 | ||
OTHER ASSETS AND LIABILITIES - NET—(2.0)%5 | (7,092,899) | ||
TOTAL NET ASSETS—100% | $362,392,350 |
Balance of Shares Held 7/31/2019 | Purchases/ Additions* | Sales/ Reductions* | |
Consumer Discretionary: | |||
Wingstop, Inc. | — | 23,237 | — |
Health Care: | |||
AnaptysBio, Inc. | — | 42,294 | — |
Affiliated Issuers no longer in the portfolio at period end | — | 2,706 | (2,706) |
TOTAL OF AFFILIATED TRANSACTIONS | — | 68,237 | (2,706) |
Balance of Shares Held 7/31/2020 | Value | Change in Unrealized Appreciation/ Depreciation | Net Realized Gain/(Loss)* | Dividend Income* |
23,237 | $3,630,781 | $786,286 | $— | $2,285 |
42,294 | $759,600 | $(35,545) | $— | $— |
— | $— | $— | $12,433 | $— |
65,531 | $4,390,381 | $750,741 | $12,433 | $2,285 |
* | A portion of the amount shown was recorded when the Fund no longer had ownership of at least 5% of the voting shares. |
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | Total of Affiliated Transactions | |
Balance of Shares Held 7/31/2019 | 491,528 | 7,701,438 | 8,192,966 |
Purchases/Additions | 65,245,765 | 115,156,178 | 180,401,943 |
Sales/Reductions | (58,440,516) | (117,181,538) | (175,622,054) |
Balance of Shares Held 7/31/2020 | 7,296,777 | 5,676,078 | 12,972,855 |
Value | $7,296,777 | $5,679,483 | $12,976,260 |
Change in Unrealized Appreciation/Depreciation | N/A | $(521) | $(521) |
Net Realized Gain/(Loss) | N/A | $2,184 | $2,184 |
Dividend Income | $23,627 | $63,183 | $86,810 |
* | 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 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. |
3 | 7-day net yield. |
4 | The cost of investments for federal tax purposes amounts to $317,751,065. |
5 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $29.90 | $30.01 | $24.95 | $21.77 | $22.10 |
Income From Investment Operations: | |||||
Net investment income | 0.131 | 0.161 | 0.091 | 0.26 | 0.191 |
Net realized and unrealized gain (loss) | 2.69 | 1.81 | 5.08 | 3.11 | (0.33) |
TOTAL FROM INVESTMENT OPERATIONS | 2.82 | 1.97 | 5.17 | 3.37 | (0.14) |
Less Distributions: | |||||
Distributions from net investment income | (0.11) | (0.07) | (0.11) | (0.19) | (0.19) |
Distributions from net realized gain | (0.84) | (2.01) | — | — | — |
TOTAL DISTRIBUTIONS | (0.95) | (2.08) | (0.11) | (0.19) | (0.19) |
Net Asset Value, End of Period | $31.77 | $29.90 | $30.01 | $24.95 | $21.77 |
Total Return2 | 9.66% | 7.80% | 20.78% | 15.56% | (0.61)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.04% | 1.08% | 1.36% | 1.38% | 1.35% |
Net investment income | 0.44% | 0.57% | 0.31% | 0.69% | 0.94% |
Expense waiver/reimbursement4 | 0.20% | 0.24% | 0.00%5 | 0.00%5 | 0.03% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $79,301 | $69,221 | $40,539 | $33,799 | $33,753 |
Portfolio turnover | 160% | 87% | 82% | 77% | 62% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Represents less than 0.01%. |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $27.99 | $28.37 | $23.66 | $20.66 | $21.00 |
Income From Investment Operations: | |||||
Net investment income (loss) | (0.08)1 | (0.05)1 | (0.11)1 | (0.19) | 0.031 |
Net realized and unrealized gain (loss) | 2.50 | 1.68 | 4.82 | 3.23 | (0.33) |
TOTAL FROM INVESTMENT OPERATIONS | 2.42 | 1.63 | 4.71 | 3.04 | (0.30) |
Less Distributions: | |||||
Distributions from net investment income | — | — | — | (0.04) | (0.04) |
Distributions from net realized gain | (0.84) | (2.01) | — | — | — |
TOTAL DISTRIBUTIONS | (0.84) | (2.01) | — | (0.04) | (0.04) |
Net Asset Value, End of Period | $29.57 | $27.99 | $28.37 | $23.66 | $20.66 |
Total Return2 | 8.86% | 6.96% | 19.91% | 14.72% | (1.43)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.79% | 1.85% | 2.09% | 2.13% | 2.14% |
Net investment income (loss) | (0.31)% | (0.20)% | (0.41)% | (0.06)% | 0.15% |
Expense waiver/reimbursement4 | 0.21% | 0.24% | 0.00%5 | 0.00%5 | 0.00%5 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $31,030 | $32,178 | $39,625 | $36,440 | $36,846 |
Portfolio turnover | 160% | 87% | 82% | 77% | 62% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Represents less than 0.01%. |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $30.29 | $30.37 | $25.24 | $22.02 | $22.37 |
Income From Investment Operations: | |||||
Net investment income | 0.221 | 0.251 | 0.161 | 0.39 | 0.251 |
Net realized and unrealized gain (loss) | 2.74 | 1.81 | 5.16 | 3.09 | (0.34) |
TOTAL FROM INVESTMENT OPERATIONS | 2.96 | 2.06 | 5.32 | 3.48 | (0.09) |
Less Distributions: | |||||
Distributions from net investment income | (0.19) | (0.13) | (0.19) | (0.26) | (0.26) |
Distributions from net realized gain | (0.84) | (2.01) | — | — | — |
TOTAL DISTRIBUTIONS | (1.03) | (2.14) | (0.19) | (0.26) | (0.26) |
Net Asset Value, End of Period | $32.22 | $30.29 | $30.37 | $25.24 | $22.02 |
Total Return2 | 10.01% | 8.08% | 21.15% | 15.90% | (0.34)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.74% | 0.78% | 1.07% | 1.08% | 1.07% |
Net investment income | 0.73% | 0.87% | 0.57% | 1.01% | 1.22% |
Expense waiver/reimbursement4 | 0.25% | 0.29% | 0.00%5 | 0.00%5 | 0.00%5 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $243,490 | $215,799 | $95,290 | $52,169 | $65,435 |
Portfolio turnover | 160% | 87% | 82% | 77% | 62% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Represents less than 0.01%. |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $29.75 | $29.89 | $24.85 | $21.46 | $21.80 |
Income From Investment Operations: | |||||
Net investment income | 0.212 | 0.232 | 0.182 | 0.21 | 0.102 |
Net realized and unrealized gain (loss) | 2.69 | 1.79 | 5.06 | 3.18 | (0.33) |
TOTAL FROM INVESTMENT OPERATIONS | 2.90 | 2.02 | 5.24 | 3.39 | (0.23) |
Less Distributions: | |||||
Distributions from net investment income | (0.19) | (0.15) | (0.20) | — | (0.11) |
Distributions from net realized gain | (0.84) | (2.01) | — | — | — |
TOTAL DISTRIBUTIONS | (1.03) | (2.16) | (0.20) | — | (0.11) |
Net Asset Value, End of Period | $31.62 | $29.75 | $29.89 | $24.85 | $21.46 |
Total Return3 | 10.00% | 8.08% | 21.17% | 15.80% | (1.05)% |
Ratios to Average Net Assets: | |||||
Net expenses4 | 0.73% | 0.81% | 1.02% | 1.07% | 1.80% |
Net investment income | 0.75% | 0.78% | 0.65% | 0.95% | 0.49% |
Expense waiver/reimbursement5 | 0.17% | 0.18% | 0.00%6 | 0.00%6 | 0.00%6 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $8,571 | $9,183 | $20,425 | $17,363 | $5,717 |
Portfolio turnover | 160% | 87% | 82% | 77% | 62% |
1 | Prior to September 1, 2016, the Fund’s Class R6 Shares were designated as Class R Shares. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
6 | Represents less than 0.01%. |
Assets: | ||
Investment in securities, at value including $7,071,666 of securities loaned and $12,976,260 of investment in affiliated holdings* (identified cost $317,184,807) | $369,485,249 | |
Income receivable | 148,595 | |
Income receivable from affiliated holdings* | 1,223 | |
Receivable for investments sold | 745,012 | |
Receivable for shares sold | 501,589 | |
TOTAL ASSETS | 370,881,668 | |
Liabilities: | ||
Payable for investments purchased | $426,963 | |
Payable for shares redeemed | 544,952 | |
Payable for collateral due to broker for securities lending | 7,296,777 | |
Payable for investment adviser fee (Note 5) | 5,258 | |
Payable for administrative fees (Note 5) | 768 | |
Payable for distribution services fee (Note 5) | 19,634 | |
Payable for other service fees (Notes 2 and 5) | 26,394 | |
Accrued expenses (Note 5) | 168,572 | |
TOTAL LIABILITIES | 8,489,318 | |
Net assets for 11,373,676 shares outstanding | $362,392,350 | |
Net Assets Consist of: | ||
Paid-in capital | $310,413,862 | |
Total distributable earnings (loss) | 51,978,488 | |
TOTAL NET ASSETS | $362,392,350 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
Class A Shares: | ||
Net asset value per share ($79,300,807 ÷ 2,496,434 shares outstanding), no par value, unlimited shares authorized | $31.77 | |
Offering price per share (100/94.50 of $31.77) | $33.62 | |
Redemption proceeds per share | $31.77 | |
Class C Shares: | ||
Net asset value per share ($31,030,373 ÷ 1,049,329 shares outstanding), no par value, unlimited shares authorized | $29.57 | |
Offering price per share | $29.57 | |
Redemption proceeds per share (99.00/100 of $29.57) | $29.27 | |
Institutional Shares: | ||
Net asset value per share ($243,489,953 ÷ 7,556,849 shares outstanding), no par value, unlimited shares authorized | $32.22 | |
Offering price per share | $32.22 | |
Redemption proceeds per share | $32.22 | |
Class R6 Shares: | ||
Net asset value per share ($8,571,217 ÷ 271,064 shares outstanding), no par value, unlimited shares authorized | $31.62 | |
Offering price per share | $31.62 | |
Redemption proceeds per share | $31.62 |
* | See information listed after the Fund’s Portfolio of Investments. |
Investment Income: | |||
Dividends (including $63,183 received from an affiliated holding* and net of foreign taxes withheld of $3,131) | $4,762,832 | ||
Net income on securities loaned (includes $23,627 earned from an affiliated holding* related to cash collateral balances*) (Note 2) | 76,235 | ||
TOTAL INCOME | 4,839,067 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $2,288,899 | ||
Administrative fee (Note 5) | 258,696 | ||
Custodian fees | 45,060 | ||
Transfer agent fee (Note 2) | 347,224 | ||
Directors’/Trustees’ fees (Note 5) | 3,142 | ||
Auditing fees | 27,701 | ||
Legal fees | 7,722 | ||
Portfolio accounting fees | 116,894 | ||
Distribution services fee (Note 5) | 232,902 | ||
Other service fees (Notes 2 and 5) | 261,052 | ||
Share registration costs | 87,026 | ||
Printing and postage | 38,832 | ||
Miscellaneous (Note 5) | 30,546 | ||
TOTAL EXPENSES | 3,745,696 | ||
Waiver and Reimbursements: | |||
Waiver/reimbursement of investment adviser fee (Note 5) | $(564,352) | ||
Reimbursement of other operating expenses (Notes 2 and 5) | (200,652) | ||
TOTAL REIMBURSEMENTS | (765,004) | ||
Net expenses | 2,980,692 | ||
Net investment income | 1,858,375 | ||
Realized and Unrealized Gain (Loss) on Investments: | |||
Net realized gain on investments (including net realized gain of $2,184 on sales of investments in an affiliated holding*) | 3,253,617 | ||
Net change in unrealized appreciation of investments (including net change in unrealized depreciation of $(521) on investments in an affiliated holding*) | 24,231,474 | ||
Net realized and unrealized gain on investments | 27,485,091 | ||
Change in net assets resulting from operations | $29,343,466 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31 | 2020 | 2019 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $1,858,375 | $1,799,509 |
Net realized gain | 3,253,617 | 12,196,355 |
Net change in unrealized appreciation/depreciation | 24,231,474 | 7,975,426 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 29,343,466 | 21,971,290 |
Distributions to Shareholders: | ||
Class A Shares | (2,420,345) | (3,882,027) |
Class C Shares | (981,926) | (1,891,738) |
Institutional Shares | (7,530,512) | (12,178,410) |
Class R6 Shares | (293,094) | (604,361) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (11,225,877) | (18,556,536) |
Share Transactions: | ||
Proceeds from sale of shares | 138,101,946 | 256,926,172 |
Proceeds from shares issued in connection with the tax-free transfer of assets from PNC Multi-Factor All Cap Fund | 4,799,602 | — |
Net asset value of shares issued to shareholders in payment of distributions declared | 10,177,441 | 17,409,881 |
Cost of shares redeemed | (135,185,593) | (147,248,399) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 17,893,396 | 127,087,654 |
Change in net assets | 36,010,985 | 130,502,408 |
Net Assets: | ||
Beginning of period | 326,381,365 | 195,878,957 |
End of period | $362,392,350 | $326,381,365 |
Shares of the Fund Issued | Acquired Fund’s Net Assets Received | Unrealized Depreciation1 | Net Assets of the Fund Immediately Prior to Combination | Net Assets of the Fund Immediately After Combination |
158,091 | $4,799,602 | $481,958 | $334,525,804 | $339,325,406 |
1 | Unrealized Depreciation is included in the Net Assets Received amount shown above. |
Net investment income | $1,879,088 |
Net realized and unrealized gain on investments | $27,688,497 |
Net increase in net assets resulting from operations | $29,567,585 |
■ | 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. |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Fund’s Board of Trustees (the “Trustees”). |
■ | 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 asked quotations. |
■ | Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, 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. |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $78,456 | $(20,385) |
Class C Shares | 35,582 | (11,017) |
Institutional Shares | 231,607 | (169,250) |
Class R6 Shares | 1,579 | — |
TOTAL | $347,224 | $(200,652) |
Other Service Fees Incurred | |
Class A Shares | $183,418 |
Class C Shares | 77,634 |
TOTAL | $261,052 |
Market Value of Securities Loaned | Collateral Received |
$7,071,666 | $7,296,777 |
Year Ended July 31 | 2020 | 2019 | ||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 690,025 | $19,860,088 | 1,197,944 | $35,149,177 |
Proceeds from shares issued in connection with the tax-free transfer of assets from PNC Multi-Factor All Cap Fund | 69,799 | 2,108,622 | — | — |
Shares issued to shareholders in payment of distributions declared | 75,909 | 2,245,758 | 143,909 | 3,662,745 |
Shares redeemed | (654,712) | (18,099,902) | (377,081) | (10,640,181) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 181,021 | $6,114,566 | 964,772 | $28,171,741 |
Year Ended July 31 | 2020 | 2019 | ||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 229,788 | $6,229,160 | 486,557 | $12,740,476 |
Proceeds from shares issued in connection with the tax-free transfer of assets from PNC Multi-Factor All Cap Fund | 5,925 | 167,267 | — | — |
Shares issued to shareholders in payment of distributions declared | 32,298 | 888,524 | 73,190 | 1,749,965 |
Shares redeemed | (368,127) | (9,700,529) | (806,777) | (22,501,025) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (100,116) | $(2,415,578) | (247,030) | $(8,010,584) |
Year Ended July 31 | 2020 | 2019 | ||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 3,765,883 | $109,245,509 | 6,734,928 | $195,716,816 |
Proceeds from shares issued in connection with the tax-free transfer of assets from PNC Multi-Factor All Cap Fund | 82,367 | 2,523,713 | — | — |
Shares issued to shareholders in payment of distributions declared | 227,539 | 6,839,149 | 442,206 | 11,395,972 |
Shares redeemed | (3,642,257) | (103,350,480) | (3,191,121) | (90,332,398) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 433,532 | $15,257,891 | 3,986,013 | $116,780,390 |
Year Ended July 31 | 2020 | 2019 | ||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 96,159 | $2,767,189 | 448,233 | $13,319,703 |
Shares issued to shareholders in payment of distributions declared | 6,915 | 204,010 | 23,752 | 601,199 |
Shares redeemed | (140,698) | (4,034,682) | (846,550) | (23,774,795) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | (37,624) | $(1,063,483) | (374,565) | $(9,853,893) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 476,813 | $17,893,396 | 4,329,190 | $127,087,654 |
Increase (Decrease) | |
Paid-In Capital | Total Distributable Earnings (Loss) |
$(4,866,441) | $4,866,441 |
2020 | 2019 | |
Ordinary income1 | $5,661,147 | $6,315,404 |
Long-term capital gains | $5,564,730 | $12,241,132 |
1 | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Undistributed ordinary income | $1,133,711 |
Net unrealized appreciation | $51,734,184 |
Capital loss deferrals | $(889,407) |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Percentage of Average Daily Net Assets of Class | |
Class A Shares | 0.05% |
Class C Shares | 0.75% |
Distribution Services Fees Incurred | |
Class C Shares | $232,902 |
Purchases | $523,699,303 |
Sales | $514,229,396 |
September 22, 2020
Beginning Account Value 2/1/2020 | Ending Account Value 7/31/2020 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,052.00 | $5.31 |
Class C Shares | $1,000 | $1,047.80 | $9.11 |
Institutional Shares | $1,000 | $1,053.60 | $3.78 |
Class R6 Shares | $1,000 | $1,053.60 | $3.73 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,019.70 | $5.22 |
Class C Shares | $1,000 | $1,016.00 | $8.97 |
Institutional Shares | $1,000 | $1,021.20 | $3.72 |
Class R6 Shares | $1,000 | $1,021.20 | $3.67 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.04% |
Class C Shares | 1.79% |
Institutional Shares | 0.74% |
Class R6 Shares | 0.73% |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: May 2006 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2016 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company; President of some of the Funds in the Federated Hermes Fund Family and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; President and CEO of Passport Research, Ltd.; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Hermes, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. and President, Technology, Federated Services Company. |
* | Reasons for “interested” status: J. Christopher Donahue and John B. Fisher are interested due to their beneficial ownership of shares of Federated Hermes, Inc. and due to positions they hold with Federated Hermes, Inc. and its subsidiaries. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Chairman of the Board of Directors, Director, and Chairman of the Compensation Committee, KLX Energy Services Holdings, Inc. (oilfield services); former Director of KLX Corp. (aerospace). Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm) and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Director, Member of the Audit Committee, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green was appointed by the Supreme Court of Pennsylvania to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); Director, Catholic Charities, Pittsburgh; and Director CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; and Director and Chair, North Catholic High School, Inc. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant and Author. Other Directorships Held: None. Qualifications: Mr. Mansfield has served as a Marine Corps officer and in several banking, business management, educational roles and directorship positions throughout his long career. He remains active as a Management Consultant and Author. |
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity and Director, The Golisano Children’s Museum of Naples, Florida. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CNX Resources Corporation (formerly known as CONSOL Energy Inc.); and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp. and Edgewood Services, Inc.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: June 2006 | Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc. |
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: June 2012 | Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
■ | the liquidity risk framework used to assess, manage, and periodically review each Fund’s liquidity risk and the results of this assessment, including a review of the Funds’ access to other available funding sources such as the Funds’ interfund lending facility, redemptions in-kind and committed lines of credit and confirmation that the Fund did not have to access any of these alternative funding sources during the Period; |
■ | the periodic classifications of the Fund’s investments into one of four liquidity categories and the methodologies and inputs used to classify the investments, including the Fund’s reasonably anticipated trade size; |
■ | the analysis received from a third-party liquidity assessment vendor that is taken into account in the process of determining the liquidity classifications of the Fund’s investments and the results of an evaluation of the services performed by the vendor in support of this process; |
■ | the fact that the Fund invested primarily in highly liquid investments during the Period and, therefore, was not required to establish, and has not established, an HLIM and the procedures for monitoring the status of the Fund as investing primarily in highly liquid investments; |
■ | the fact that the Fund invested no more than 15% of its assets in illiquid investments during the Period and the procedures for monitoring this limit; and |
■ | liquidity events during the Period, including the impact on liquidity caused by extended non-U.S. market closures and the market disruptions resulting from the novel coronavirus outbreak, and the fact that there were no specific liquidity events during the Period that materially affected the Fund’s liquidity risk. |
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31421R205
CUSIP 31421R304
CUSIP 31421R718
Share Class | Ticker | A | QABGX | C | QCBGX | Institutional | QIBGX | R6 | QKBGX |
Donahue
1 | The Fund’s Blended Index, which reflects 60% of the S&P 500 and 40% of the BAB, is being used for comparison purposes because, although it is not the Fund’s broad-based securities market index, the Fund’s Adviser believes it is more reflective of the Fund’s balanced investment style. |
2 | Please see the footnotes to the line graphs below for definitions of, and further information about, the S&P 500 Index, one of the Fund’s broad-based securities market indices. The S&P 500’s return for the 12-month reporting period was 11.96%. |
3 | Please see the footnotes to the line graphs below for definitions of, and further information about, the BAB, one of the Fund’s broad-based securities market indices. The BAB’s return for the 12-month reporting period was 10.12%. |
4 | Please see the footnotes to the line graphs below for definitions of, and further information about, the MA50-70. |
5 | The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. The Russell 3000® Index is constructed to provide a comprehensive, unbiased, and stable barometer of the broad market and is completely reconstituted annually to ensure new and growing equities are reflected.* |
6 | Small-cap stocks may be less liquid and subject to greater price volatility than large-cap stocks. |
7 | The Russell Top 200® Index measures the performance of the largest cap segment of the U.S. equity universe. The Russell Top 200® Index is a subset of the Russell 3000® Index. It includes approximately 200 of the largest securities based on a combination of their market cap and current index membership and represents approximately 68% of the U.S. market. The Russell Top 200® Index is constructed to provide a comprehensive and unbiased barometer for this very large cap segment and is completely reconstituted annually to ensure new and growing equities are reflected.* |
8 | The Russell Midcap® Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap® Index is a subset of the Russell 1000® Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. The Russell Midcap® Index represents approximately 31% of the total market capitalization of the Russell 1000® companies. The Russell Midcap® Index is constructed to provide a comprehensive and unbiased barometer for the mid-cap segment. The Russell Midcap Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true mid-cap opportunity set.* |
9 | The Russell 2000® Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000® Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000® Index is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set.* |
10 | The Russell 3000® Growth Index measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 3000® Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 3000® Growth Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad growth market. The Russell 3000® Growth Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect growth characteristics.* |
11 | The Russell 3000® Value Index measures the performance of the broad value segment of U.S. equity value universe. It includes those Russell 3000® Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 3000® Value Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad value market. The Russell 3000® Value Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect value characteristics.* |
12 | International investing involves special risks including currency risk, increased volatility of foreign securities, political risks and differences in auditing and other financial standards. |
13 | The MSCI US EAFE Index measures international equity performance. It comprises 22 MSCI country indices, representing the developed markets outside of North America.* |
14 | Prices of emerging markets securities can be significantly more volatile than the prices of securities in developed countries, and currency risks and political risks are accentuated in emerging markets. |
15 | The MSCI Emerging Markets Index is an unmanaged index consisting of 21 emerging market countries.* |
16 | Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices. |
17 | The MSCI REIT Index is a free float-adjusted market capitalization weighted index that is comprised of equity Real Estate Investment Trusts (REITs). The index is based on the MSCI USA Investable Market Index (IMI), its parent index, which captures the large, mid and small cap segments of the USA market.* |
* | The index is unmanaged, and it is not possible to invest directly in an index. |
Federated Hermes MDT Balanced Fund - | Institutional Shares | Class C Shares | S&P 500 | BAB | Blended Index | MA50-70 |
F | F | I | I | I | I | |
7/31/2010 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 |
7/31/2011 | 11,399 | 11,285 | 11,965 | 10,444 | 11,361 | 11,347 |
7/31/2012 | 11,612 | 11,390 | 13,058 | 11,201 | 12,361 | 11,711 |
7/31/2013 | 13,892 | 13,486 | 16,322 | 10,988 | 14,041 | 13,375 |
7/31/2014 | 15,739 | 15,124 | 19,087 | 11,424 | 15,683 | 14,752 |
7/31/2015 | 16,703 | 15,899 | 21,226 | 11,747 | 16,922 | 15,340 |
7/31/2016 | 16,692 | 15,724 | 22,417 | 12,444 | 17,937 | 15,612 |
7/31/2017 | 18,255 | 17,019 | 26,014 | 12,380 | 19,585 | 17,086 |
7/31/2018 | 20,473 | 18,906 | 30,238 | 12,281 | 21,393 | 18,260 |
7/31/2019 | 21,622 | 19,765 | 32,653 | 13,273 | 23,207 | 19,037 |
7/31/2020 | 23,640 | 21,395 | 36,558 | 14,616 | 25,954 | 20,075 |
■ | Total returns shown for Class C Shares include the maximum contingent deferred sales charge of 1.00% as applicable. |
1 Year | 5 Years | 10 Years | |
Class A Shares | 3.07% | 5.71% | 8.10% |
Class C Shares | 7.25% | 6.12% | 7.90% |
Institutional Shares | 9.33% | 7.19% | 8.98% |
Class R6 Shares5 | 9.26% | 7.07% | 8.58% |
S&P 500 | 11.96% | 11.49% | 13.84% |
BAB | 10.12% | 4.47% | 3.87% |
Blended Index | 11.84% | 8.93% | 10.01% |
MA50-70 | 5.43% | 5.81% | 7.76% |
1 | Represents a hypothetical investment of $10,000 in the Fund after deducting applicable sales charges: for Class A Shares, the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450); for Class C Shares, a 1.00% contingent deferred sales charge would be applied on any redemption less than one year from the purchase date. The Fund’s performance assumes the reinvestment of all dividends and distributions. The S&P 500, BAB and MA50-70 have been adjusted to reflect reinvestment of dividends on securities in the indexes. |
2 | The S&P 500 Index, a broad-based securities market index of the Fund, is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The S&P 500 is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. The S& P 500 is not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission (SEC) requires to be reflected in the Fund’s performance. |
3 | The BAB Index, a broad-based securities market index of the Fund, is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market. The BAB is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. The BAB is not adjusted to reflect sales charges, expenses or other fees that the SEC requires to be reflected in the Fund’s performance. |
4 | Morningstar figures represent the average of the total returns reported by all the funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. The Morningstar figures in the Growth of $10,000 line graph are based on historical return information published by Morningstar and reflect the return of the funds comprising the category in the year of publication. Because the funds designated by Morningstar as falling into the category can change over time, the Morningstar figures in the line graph may not match the Morningstar figures in the Average Annual Total Returns table, which reflect the return of the funds that currently comprise the category. |
5 | Prior to September 1, 2016, Class R6 Shares were known as Class R Shares and included 12b-1 fees and certain other expenses. As of September 1, 2016, Class R6 does not include such 12b-1 fees and certain other expenses, and the performance shown above for Class R6 prior to September 1, 2016, reflects the higher Class R expenses. |
Security Type | Percentage of Total Net Assets |
Domestic Equity Securities | 54.6% |
Corporate Debt Securities | 15.2% |
International Equity Securities (including International Exchange-Traded Funds) | 8.0% |
Federated Mortgage Core Portfolio | 6.9% |
High Yield Bond Portfolio | 2.3% |
Emerging Markets Core Fund | 1.9% |
Commercial Mortgage-Backed Securities | 1.8% |
Federated Bank Loan Core Fund | 1.6% |
Project and Trade Finance Core Fund | 1.5% |
U.S. Treasury Securities2 | 1.0% |
Municipal Bonds | 0.6% |
Mortgage-Backed Securities | 0.5% |
Asset-Backed Securities | 0.5% |
Government Agency | 0.2% |
Collateralized Mortgage Obligations | 0.0%3 |
Securities Lending Collateral4 | 0.9% |
Derivative Contracts5 | 0.0%3 |
Cash Equivalents6 | 3.3% |
Other Assets and Liabilities—Net7 | (0.8)% |
TOTAL | 100.0% |
1 | See the Fund’s Prospectus and Statement of Additional Information for a description of the types of securities in which the Fund invests. As of the date specified above, the Fund owned shares of one or more affiliated investment companies. For purposes of this table, affiliated investment companies (other than an affiliated money market mutual fund) in which the Fund invested less than 10% of its net assets, are listed individually in the table. |
2 | Includes U.S. Treasuries pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding futures contracts. |
3 | Represents less than 0.1%. |
4 | Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. |
5 | Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund’s performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract’s significance to the portfolio. More complete information regarding the Fund’s direct investments in derivative contracts, including unrealized appreciation (depreciation), value and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report. |
6 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing cash collateral for securities lending. |
7 | Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities. |
Sector Composition | Percentage of Equity Securities |
Information Technology | 26.2% |
Health Care | 14.6% |
Consumer Discretionary | 12.0% |
Financials | 10.9% |
Communication Services | 9.3% |
Industrials | 8.2% |
Consumer Staples | 7.3% |
Real Estate | 5.1% |
Materials | 2.6% |
Utilities | 2.0% |
Energy | 1.8% |
TOTAL | 100.0% |
8 | Sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
Shares or Principal Amount | Value | ||
COMMON STOCKS—55.1% | |||
Communication Services—5.2% | |||
4,243 | Activision Blizzard, Inc. | $350,599 | |
2,376 | 1 | Alphabet, Inc., Class A | 3,535,369 |
429 | Cable One, Inc. | 781,878 | |
21,112 | 1 | Cars.com, Inc. | 171,429 |
6,754 | CenturyLink, Inc. | 65,176 | |
14,105 | Cogent Communications Holdings, Inc. | 1,271,002 | |
1,550 | 1 | Facebook, Inc. | 393,189 |
28,128 | 1 | MSG Networks, Inc. | 268,060 |
5,694 | Meredith Corp. | 81,766 | |
942 | 1 | Netflix, Inc. | 460,525 |
18,917 | 1 | TripAdvisor, Inc. | 382,691 |
14,027 | Verizon Communications, Inc. | 806,272 | |
TOTAL | 8,567,956 | ||
Consumer Discretionary—6.6% | |||
1,029 | 1 | Amazon.com, Inc. | 3,256,456 |
3,994 | 1 | American Axle & Manufacturing Holdings, Inc. | 28,198 |
214 | 1 | AutoZone, Inc. | 258,388 |
5,653 | 1 | Cooper-Standard Holding, Inc. | 60,544 |
860 | Dollar General Corp. | 163,744 | |
4,465 | Domino’s Pizza, Inc. | 1,726,214 | |
11,226 | eBay, Inc. | 620,573 | |
1,947 | 1 | Etsy, Inc. | 230,486 |
24,635 | Ford Motor Co. | 162,837 | |
2,558 | 1 | G-III Apparel Group Ltd. | 25,298 |
1,931 | Garmin Ltd. | 190,377 | |
15,297 | Goodyear Tire & Rubber Co. | 137,826 | |
3,583 | Home Depot, Inc. | 951,251 | |
6,086 | Lowe’s Cos., Inc. | 906,266 | |
122 | 1 | Lululemon Athletica, Inc. | 39,722 |
74,144 | 2 | Macy’s, Inc. | 449,313 |
1,007 | McDonald’s Corp. | 195,640 | |
2,445 | 1 | Mohawk Industries, Inc. | 195,233 |
431 | 1 | O’Reilly Automotive, Inc. | 205,751 |
160 | 1 | Ulta Beauty, Inc. | 30,878 |
Shares or Principal Amount | Value | ||
COMMON STOCKS—continued | |||
Consumer Discretionary—continued | |||
933 | 1,2 | Wayfair, Inc. | $248,262 |
5,695 | Wingstop, Inc. | 889,844 | |
581 | Yum! Brands, Inc. | 52,900 | |
TOTAL | 11,026,001 | ||
Consumer Staples—4.0% | |||
6,096 | 1 | BJ’s Wholesale Club Holdings, Inc. | 244,145 |
6,046 | Church and Dwight, Inc. | 582,411 | |
3,924 | Clorox Co. | 928,065 | |
26,545 | Colgate-Palmolive Co. | 2,049,274 | |
1,430 | Hershey Foods Corp. | 207,936 | |
10,598 | Kimberly-Clark Corp. | 1,611,320 | |
5,398 | PepsiCo, Inc. | 743,089 | |
1,773 | Procter & Gamble Co. | 232,476 | |
TOTAL | 6,598,716 | ||
Energy—1.0% | |||
3,965 | Arch Resources, Inc. | 122,994 | |
3,619 | Cimarex Energy Co. | 88,521 | |
5,090 | Concho Resources, Inc. | 267,429 | |
18,106 | 1,2 | Continental Resources, Inc. | 313,053 |
6,263 | Devon Energy Corp. | 65,699 | |
2,004 | EOG Resources, Inc. | 93,887 | |
6,773 | Helmerich & Payne, Inc. | 120,763 | |
21,158 | Marathon Oil Corp. | 116,157 | |
15,207 | PBF Energy, Inc. | 131,997 | |
18,653 | Peabody Energy Corp. | 58,197 | |
3,652 | Phillips 66 | 226,497 | |
1,097 | Valero Energy Corp. | 61,684 | |
TOTAL | 1,666,878 | ||
Financials—6.0% | |||
5,354 | Aflac, Inc. | 190,442 | |
649 | Alleghany Corp. | 338,986 | |
10,929 | Allstate Corp. | 1,031,588 | |
339 | Ameriprise Financial, Inc. | 52,081 | |
992 | 1 | Arch Capital Group Ltd. | 30,504 |
2,285 | Bank of New York Mellon Corp. | 81,917 | |
109 | BlackRock, Inc. | 62,676 | |
10,600 | Blackstone Mortgage Trust, Inc. | 255,142 |
Shares or Principal Amount | Value | ||
COMMON STOCKS—continued | |||
Financials—continued | |||
13,355 | Cincinnati Financial Corp. | $1,040,755 | |
295 | Everest Re Group Ltd. | 64,543 | |
1,122 | Globe Life, Inc. | 89,311 | |
17,749 | Huntington Bancshares, Inc. | 164,533 | |
9,270 | Intercontinental Exchange, Inc. | 897,151 | |
3,042 | MSCI, Inc., Class A | 1,143,731 | |
1,320 | Marketaxess Holdings, Inc. | 682,044 | |
1,975 | MetLife, Inc. | 74,754 | |
4,729 | NASDAQ, Inc. | 620,965 | |
2,617 | Northern Trust Corp. | 205,042 | |
5,529 | Prudential Financial, Inc. | 350,373 | |
1,761 | Reinsurance Group of America | 150,125 | |
917 | Selective Insurance Group, Inc. | 49,830 | |
1,311 | State Street Corp. | 83,629 | |
18,817 | The Travelers Cos., Inc. | 2,153,041 | |
6,265 | Zions Bancorporation, N.A. | 203,424 | |
TOTAL | 10,016,587 | ||
Health Care—8.0% | |||
803 | Abbott Laboratories | 80,814 | |
575 | AbbVie, Inc. | 54,573 | |
1,997 | 1 | Alexion Pharmaceuticals, Inc. | 204,673 |
2,138 | 1 | Allogene Therapeutics, Inc. | 78,400 |
3,941 | Amgen, Inc. | 964,244 | |
11,533 | 1 | AnaptysBio, Inc. | 207,133 |
906 | Anthem, Inc. | 248,063 | |
1,623 | 1 | Arcus Biosciences, Inc. | 31,941 |
3,231 | 1 | Biogen, Inc. | 887,523 |
1,819 | 1 | Biohaven Pharmaceutical Holding Co. Ltd. | 116,489 |
1,247 | CIGNA Corp. | 215,344 | |
3,813 | CVS Health Corp. | 239,990 | |
361 | Cerner Corp. | 25,071 | |
15,524 | 1,2 | Community Health Systems, Inc. | 77,310 |
2,172 | 1 | Constellation Pharmaceuticals, Inc. | 58,405 |
198 | Cooper Cos., Inc. | 56,020 | |
3,489 | 1 | Davita, Inc. | 304,904 |
2,758 | Dentsply Sirona, Inc. | 123,007 | |
5,319 | Eli Lilly & Co. | 799,392 |
Shares or Principal Amount | Value | ||
COMMON STOCKS—continued | |||
Health Care—continued | |||
474 | 1 | Emergent BioSolutions, Inc. | $52,728 |
2,364 | Gilead Sciences, Inc. | 164,369 | |
477 | 1 | Henry Schein, Inc. | 32,784 |
11,295 | 1 | Hologic, Inc. | 788,165 |
1,276 | Humana, Inc. | 500,766 | |
1,377 | 1 | IDEXX Laboratories, Inc. | 547,702 |
2,525 | 1 | Jazz Pharmaceuticals PLC | 273,331 |
7,106 | Johnson & Johnson | 1,035,771 | |
4,351 | 1,2 | Livongo Health, Inc. | 553,665 |
372 | Medtronic PLC | 35,891 | |
13,595 | Merck & Co., Inc. | 1,090,863 | |
413 | 1 | Molina Healthcare, Inc. | 76,281 |
7,854 | 1 | Myriad Genetics, Inc. | 94,798 |
2,796 | Pfizer, Inc. | 107,590 | |
6,969 | 1 | SAGE Therapeutics, Inc. | 317,577 |
229 | 1 | United Therapeutics Corp. | 25,527 |
481 | UnitedHealth Group, Inc. | 145,637 | |
275 | Universal Health Services, Inc., Class B | 30,222 | |
3,623 | 1 | Vertex Pharmaceuticals, Inc. | 985,456 |
3,469 | 1 | Waters Corp. | 739,417 |
6,704 | Zoetis, Inc. | 1,016,863 | |
TOTAL | 13,388,699 | ||
Industrials—4.5% | |||
2,875 | AGCO Corp. | 188,686 | |
1,328 | 1 | Atlas Air Worldwide Holdings, Inc. | 69,162 |
978 | Brinks Co. (The) | 43,374 | |
7,124 | 1 | CIRCOR International, Inc. | 186,791 |
869 | Curtiss Wright Corp. | 77,445 | |
1,162 | Deluxe Corp. | 32,803 | |
2,437 | Flowserve Corp. | 67,919 | |
19,553 | Fluor Corp. | 199,245 | |
3,828 | Hexcel Corp. | 142,784 | |
1,756 | Hubbell, Inc. | 237,007 | |
1,536 | Huntington Ingalls Industries, Inc. | 266,819 | |
118,888 | KAR Auction Services, Inc. | 1,798,776 | |
1,586 | Lockheed Martin Corp. | 601,047 | |
4,178 | Masco Corp. | 238,815 |
Shares or Principal Amount | Value | ||
COMMON STOCKS—continued | |||
Industrials—continued | |||
10,000 | Pitney Bowes, Inc. | $33,400 | |
3,596 | Republic Services, Inc. | 313,751 | |
7,730 | 1 | SPX Corp. | 324,660 |
43,219 | Spirit AeroSystems Holdings, Inc., Class A | 845,796 | |
1,133 | TransUnion | 101,483 | |
6,644 | Verisk Analytics, Inc. | 1,253,789 | |
447 | W.W. Grainger, Inc. | 152,664 | |
4,590 | Xylem, Inc. | 334,978 | |
TOTAL | 7,511,194 | ||
Information Technology—14.4% | |||
3,302 | 1 | Adobe, Inc. | 1,467,145 |
1,827 | Alliance Data Systems Corp. | 81,046 | |
757 | Analog Devices, Inc. | 86,941 | |
6,124 | Apple, Inc. | 2,602,945 | |
6,309 | Applied Materials, Inc. | 405,858 | |
1,534 | 1 | Autodesk, Inc. | 362,684 |
6,808 | Booz Allen Hamilton Holding Corp. | 556,622 | |
1,401 | Broadcom, Inc. | 443,767 | |
18,281 | 1 | Cadence Design Systems, Inc. | 1,997,199 |
4,701 | 1 | Cirrus Logic, Inc. | 322,160 |
570 | Citrix Systems, Inc. | 81,373 | |
2,144 | Cognizant Technology Solutions Corp. | 146,478 | |
134 | 1 | Coupa Software, Inc. | 41,064 |
3,449 | 1 | Crowdstrike Holdings, Inc. | 390,427 |
110,250 | DXC Technology Co. | 1,974,577 | |
9,157 | 1 | DocuSign, Inc. | 1,985,512 |
12,780 | 1 | Dynatrace Holdings LLC | 534,587 |
247 | 1 | FleetCor Technologies, Inc. | 63,867 |
2,216 | 1 | Fortinet, Inc. | 306,473 |
395 | Henry Jack & Associates, Inc. | 70,428 | |
9,407 | 1 | Inphi Corp. | 1,229,119 |
9,807 | Intel Corp. | 468,088 | |
302 | Intuit, Inc. | 92,524 | |
2,469 | 1 | Keysight Technologies, Inc. | 246,628 |
3,271 | Mastercard, Inc. | 1,009,202 | |
11,281 | Microsoft Corp. | 2,312,718 | |
151 | Monolithic Power Systems | 40,017 |
Shares or Principal Amount | Value | ||
COMMON STOCKS—continued | |||
Information Technology—continued | |||
1,522 | NVIDIA Corp. | $646,226 | |
688 | 1 | Okta, Inc. | 152,034 |
1,795 | Oracle Corp. | 99,533 | |
11,674 | Paychex, Inc. | 839,594 | |
2,944 | 1 | PayPal Holdings, Inc. | 577,230 |
12,572 | Plantronics, Inc. | 251,314 | |
9,835 | Qualcomm, Inc. | 1,038,674 | |
41,560 | Sabre Corp. | 314,194 | |
943 | 1 | Semtech Corp. | 52,553 |
131 | 1 | ServiceNow, Inc. | 57,535 |
1,262 | 1 | Synopsys, Inc. | 251,416 |
8,203 | Vishay Intertechnology, Inc. | 128,705 | |
4,987 | Western Union Co. | 121,084 | |
9,197 | Xerox Holdings Corp. | 153,130 | |
390 | 1 | Zscaler, Inc. | 50,642 |
TOTAL | 24,053,313 | ||
Materials—1.5% | |||
20,604 | 1 | Alcoa Corp. | 267,852 |
20,255 | 1 | Allegheny Technologies, Inc. | 176,016 |
2,659 | 1 | Berry Global Group, Inc. | 132,923 |
47,282 | Chemours Co./The | 876,135 | |
1,158 | 1 | Crown Holdings, Inc. | 82,890 |
11,320 | Domtar, Corp. | 237,607 | |
209 | Linde PLC | 51,228 | |
316 | Martin Marietta Materials | 65,469 | |
2,929 | PPG Industries, Inc. | 315,307 | |
983 | Scotts Miracle-Gro Co. | 155,874 | |
155 | Sherwin-Williams Co. | 100,428 | |
TOTAL | 2,461,729 | ||
Real Estate—2.8% | |||
1,500 | Alexandria Real Estate Equities, Inc. | 266,325 | |
12,900 | American Homes 4 Rent | 374,100 | |
1,550 | American Tower Corp. | 405,155 | |
9,200 | Americold Realty Trust | 371,220 | |
4,000 | Community Healthcare Trust, Inc. | 182,920 | |
20,000 | DiamondRock Hospitality Co. | 92,400 | |
405 | Equinix, Inc. | 318,119 |
Shares or Principal Amount | Value | ||
COMMON STOCKS—continued | |||
Real Estate—continued | |||
4,350 | Equity Lifestyle Properties, Inc. | $297,192 | |
11,000 | Host Hotels & Resorts, Inc. | 118,580 | |
11,800 | Invitation Homes, Inc. | 351,876 | |
2,900 | ProLogis, Inc. | 305,718 | |
2,685 | 1 | Redfin Corp. | 111,642 |
6,700 | Rexford Industrial Realty, Inc. | 314,431 | |
2,300 | Sun Communities, Inc. | 344,839 | |
12,500 | Sunstone Hotel Investors, Inc. | 93,500 | |
4,750 | Terreno Realty Corp. | 288,610 | |
7,200 | VICI Properties, Inc. | 156,312 | |
10,500 | Weyerhaeuser Co. | 292,005 | |
TOTAL | 4,684,944 | ||
Utilities—1.1% | |||
2,781 | Consolidated Edison Co. | 213,664 | |
2,108 | Evergy, Inc. | 136,662 | |
15,792 | Exelon Corp. | 609,729 | |
277 | NextEra Energy, Inc. | 77,754 | |
19,281 | OGE Energy Corp. | 634,345 | |
1,915 | Public Service Enterprises Group, Inc. | 107,125 | |
TOTAL | 1,779,279 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $77,903,684) | 91,755,296 | ||
ASSET-BACKED SECURITIES—0.5% | |||
Auto Receivables—0.2% | |||
$400,000 | Toyota Auto Receivables Owner Trust 2020-B, Class A4, 1.660%, 9/15/2025 | 409,004 | |
Equipment Lease—0.3% | |||
500,000 | HPEFS Equipment Trust 2020-2A, Class C, 2.000%, 7/22/2030 | 501,845 | |
TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $899,854) | 910,849 | ||
COLLATERALIZED MORTGAGE OBLIGATIONS—0.0% | |||
243 | 3 | Bear Stearns Mortgage Securities, Inc. 1997-6, Class 1A, 6.294%, 3/25/2031 | 233 |
528 | Federal Home Loan Mortgage Corp. REMIC, Series 1311, Class K, 7.000%, 7/15/2022 | 554 | |
612 | Federal Home Loan Mortgage Corp. REMIC, Series 1384, Class D, 7.000%, 9/15/2022 | 643 | |
3,144 | Federal Home Loan Mortgage Corp. REMIC, Series 2497, Class JH, 6.000%, 9/15/2032 | 3,587 |
Shares or Principal Amount | Value | ||
COLLATERALIZED MORTGAGE OBLIGATIONS—continued | |||
$2,035 | 4 | Federal National Mortgage Association REMIC, Series 1993-113, Class SB, 9.749% (10-year Constant Maturity Treasury +48.285%), Maximum Rate 9.749%, 7/25/2023 | $2,178 |
715 | Federal National Mortgage Association REMIC, Series 2003-35, Class UC, 3.750%, 5/25/2033 | 756 | |
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $7,539) | 7,951 | ||
COMMERCIAL MORTGAGE-BACKED SECURITIES—1.8% | |||
Commercial Mortgage—1.8% | |||
190,000 | Bank, Class A4, 3.488%, 11/15/2050 | 215,808 | |
200,000 | Citigroup Commercial Mortgage Trust 2013-GC11, Class B, 3.732%, 4/10/2046 | 206,087 | |
70,000 | Commercial Mortgage Pass-Through Certificates 2012-CR1, Class AM, 3.912%, 5/15/2045 | 72,347 | |
125,000 | Commercial Mortgage Pass-Through Certificates 2012-CR1, Class B, 4.612%, 5/15/2045 | 112,254 | |
200,000 | Commercial Mortgage Trust 2013-CR8, Class B, 3.951%, 6/10/2046 | 205,770 | |
200,000 | Commercial Mortgage Trust 2014-LC17, Class B, 4.490%, 10/10/2047 | 214,368 | |
300,000 | Commercial Mortgage Trust 2015-DC1, Class AM, 3.724%, 2/10/2048 | 320,478 | |
200,000 | FREMF Mortgage Trust 2013-K25 REMIC, Class B, 3.619%, 11/25/2045 | 209,329 | |
63,614 | Federal Home Loan Mortgage Corp. REMIC, Series K055, Class A1, 2.263%, 4/25/2025 | 65,937 | |
398,700 | Federal Home Loan Mortgage Corp. REMIC, Series K106, Class A1, 1.783%, 5/25/2029 | 422,008 | |
6,075 | Federal Home Loan Mortgage Corp. REMIC, Series K504, Class A2, 2.566%, 9/25/2020 | 6,078 | |
350,000 | Federal Home Loan Mortgage Corp. REMIC, Series K737, Class A2, 2.530%, 10/25/2026 | 384,548 | |
100,000 | GS Mortgage Securities Corp. II 2012-GCJ7, Class AS, 4.085%, 5/10/2045 | 103,054 | |
200,000 | JPMDB Commercial Mortgage Securities Trust 2016-C4, Class A3, 3.141%, 12/15/2049 | 220,244 | |
50,000 | JPMDB Commercial Mortgage Securities Trust 2017-C5, Class A5, 3.693%, 3/15/2050 | 56,886 | |
100,000 | Morgan Stanley Capital I 2012-C4, Class AS, 3.773%, 3/15/2045 | 101,721 | |
25,000 | WF-RBS Commercial Mortgage Trust 2012-C6, Class B, 4.697%, 4/15/2045 | 25,691 | |
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $2,840,631) | 2,942,608 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS—15.2% | |||
Basic Industry - Chemicals—0.0% | |||
$10,000 | DuPont de Nemours, Inc., Sr. Unsecd. Note, 3.766%, 11/15/2020 | $10,095 | |
10,000 | DuPont de Nemours, Inc., Sr. Unsecd. Note, 5.319%, 11/15/2038 | 13,335 | |
TOTAL | 23,430 | ||
Basic Industry - Metals & Mining—0.2% | |||
15,000 | Anglogold Ashanti Holdings PLC, Sr. Note, 6.500%, 4/15/2040 | 17,850 | |
62,000 | Carpenter Technology Corp., Sr. Unsecd. Note, 4.450%, 3/1/2023 | 63,715 | |
40,000 | Carpenter Technology Corp., Sr. Unsecd. Note, 5.200%, 7/15/2021 | 41,296 | |
100,000 | Reliance Steel & Aluminum Co., Sr. Unsecd. Note, 4.500%, 4/15/2023 | 107,834 | |
20,000 | Southern Copper Corp., Sr. Unsecd. Note, 6.750%, 4/16/2040 | 29,480 | |
TOTAL | 260,175 | ||
Basic Industry - Paper—0.0% | |||
10,000 | Weyerhaeuser Co., Sr. Unsecd. Note, 3.250%, 3/15/2023 | 10,567 | |
Capital Goods - Aerospace & Defense—0.5% | |||
275,000 | Boeing Co., Sr. Unsecd. Note, 4.875%, 5/1/2025 | 297,324 | |
11,000 | Embraer Overseas Ltd., Sr. Unsecd. Note, 144A, 5.696%, 9/16/2023 | 11,041 | |
110,000 | Huntington Ingalls Industries, Inc., Sr. Unsecd. Note, 144A, 3.844%, 5/1/2025 | 122,324 | |
170,000 | Leidos, Inc., Unsecd. Note, 144A, 3.625%, 5/15/2025 | 188,379 | |
10,000 | Raytheon Technologies Corp., Sr. Unsecd. Note, 144A, 3.100%, 11/15/2021 | 10,251 | |
15,000 | Spirit AeroSystems, Inc., Sr. Unsecd. Note, 4.600%, 6/15/2028 | 11,747 | |
40,000 | 4 | Textron Financial Corp., Jr. Sub. Note, 144A, 2.127% (3-month USLIBOR +1.735%), 2/15/2042 | 26,468 |
50,000 | Textron, Inc., Sr. Unsecd. Note, 4.000%, 3/15/2026 | 54,494 | |
50,000 | Textron, Inc., Sr. Unsecd. Note, 4.300%, 3/1/2024 | 53,882 | |
TOTAL | 775,910 | ||
Capital Goods - Building Materials—0.2% | |||
200,000 | Allegion US Holdings Co., Inc., Sr. Unsecd. Note, 3.200%, 10/1/2024 | 212,914 | |
80,000 | Masco Corp., Sr. Unsecd. Note, 4.375%, 4/1/2026 | 93,784 | |
TOTAL | 306,698 | ||
Capital Goods - Construction Machinery—0.0% | |||
10,000 | CNH Industrial Capital America LLC, Sr. Unsecd. Note, 4.375%, 4/5/2022 | 10,512 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Capital Goods - Diversified Manufacturing—0.2% | |||
$30,000 | General Electric Capital Corp., Sr. Unsecd. Note, Series GMTN, 3.100%, 1/9/2023 | $31,648 | |
60,000 | Lennox International, Inc., Sr. Unsecd. Note, 1.700%, 8/1/2027 | 60,784 | |
175,000 | Roper Technologies, Inc., Sr. Unsecd. Note, 2.000%, 6/30/2030 | 182,804 | |
15,000 | Thomas & Betts Corp., Sr. Unsecd. Note, 5.625%, 11/15/2021 | 15,949 | |
TOTAL | 291,185 | ||
Communications - Cable & Satellite—0.1% | |||
145,000 | Comcast Corp., Sr. Unsecd. Note, 2.800%, 1/15/2051 | 158,191 | |
15,000 | Comcast Corp., Sr. Unsecd. Note, 3.900%, 3/1/2038 | 18,795 | |
10,000 | Comcast Corp., Sr. Unsecd. Note, 4.400%, 8/15/2035 | 13,004 | |
TOTAL | 189,990 | ||
Communications - Media & Entertainment—0.3% | |||
30,000 | Grupo Televisa S.A., Sr. Unsecd. Note, 6.125%, 1/31/2046 | 39,693 | |
20,000 | Omnicom Group, Inc., Sr. Unsecd. Note, 3.625%, 5/1/2022 | 21,099 | |
400,000 | ViacomCBS, Inc., Sr. Unsecd. Note, 4.750%, 5/15/2025 | 460,956 | |
TOTAL | 521,748 | ||
Communications - Telecom Wireless—0.7% | |||
400,000 | Crown Castle International Corp., Sr. Unsecd. Note, 3.250%, 1/15/2051 | 449,918 | |
150,000 | Crown Castle International Corp., Sr. Unsecd. Note, 3.700%, 6/15/2026 | 171,530 | |
200,000 | Vodafone Group PLC, Sr. Unsecd. Note, 4.250%, 9/17/2050 | 247,822 | |
200,000 | Vodafone Group PLC, Sr. Unsecd. Note, 4.875%, 6/19/2049 | 264,811 | |
TOTAL | 1,134,081 | ||
Communications - Telecom Wirelines—0.5% | |||
300,000 | AT&T, Inc., Sr. Unsecd. Note, 3.650%, 6/1/2051 | 328,790 | |
5,000 | AT&T, Inc., Sr. Unsecd. Note, 4.500%, 5/15/2035 | 6,024 | |
10,000 | AT&T, Inc., Sr. Unsecd. Note, 5.250%, 3/1/2037 | 12,927 | |
10,000 | AT&T, Inc., Sr. Unsecd. Note, 5.700%, 3/1/2057 | 14,510 | |
150,000 | Telefonica Emisiones SAU, Sr. Unsecd. Note, 5.520%, 3/1/2049 | 204,584 | |
90,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 3.150%, 3/22/2030 | 103,519 | |
90,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 4.150%, 3/15/2024 | 100,940 | |
25,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 5.250%, 3/16/2037 | 35,299 | |
TOTAL | 806,593 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Consumer Cyclical - Automotive—0.2% | |||
$10,000 | DaimlerChrysler North America Holding Corp., Company Guarantee, 8.500%, 1/18/2031 | $15,466 | |
200,000 | Ford Motor Credit Co. LLC, Sr. Unsecd. Note, 3.336%, 3/18/2021 | 200,750 | |
160,000 | General Motors Financial Co., Inc., Sr. Unsecd. Note, 3.200%, 7/6/2021 | 162,645 | |
10,000 | General Motors Financial Co., Inc., Sr. Unsecd. Note, 3.950%, 4/13/2024 | 10,670 | |
TOTAL | 389,531 | ||
Consumer Cyclical - Leisure—0.0% | |||
66,707 | Football Trust V, Pass Thru Cert., 5.350%, 10/5/2020 | 67,045 | |
Consumer Cyclical - Lodging—0.0% | |||
20,000 | American Campus Communities Operating Partnership LP, Sr. Unsecd. Note, 4.125%, 7/1/2024 | 21,283 | |
30,000 | Hyatt Hotels Corp., Sr. Unsecd. Note, 3.375%, 7/15/2023 | 30,258 | |
TOTAL | 51,541 | ||
Consumer Cyclical - Retailers—0.4% | |||
50,000 | Advance Auto Parts, Inc., 4.500%, 12/1/2023 | 55,218 | |
170,000 | AutoNation, Inc., Sr. Unsecd. Note, 4.750%, 6/1/2030 | 197,326 | |
250,000 | AutoZone, Inc., Sr. Unsecd. Note, 3.250%, 4/15/2025 | 276,121 | |
15,000 | CVS Health Corp., Sr. Unsecd. Note, 3.700%, 3/9/2023 | 16,149 | |
15,000 | CVS Health Corp., Sr. Unsecd. Note, 4.100%, 3/25/2025 | 17,058 | |
10,000 | O’Reilly Automotive, Inc., Company Guarantee, 4.875%, 1/14/2021 | 10,083 | |
10,000 | WalMart Inc., Sr. Unsecd. Note, 5.625%, 4/1/2040 | 15,582 | |
TOTAL | 587,537 | ||
Consumer Cyclical - Services—0.3% | |||
200,000 | Alibaba Group Holding Ltd., Sr. Unsecd. Note, 2.800%, 6/6/2023 | 212,908 | |
125,000 | Amazon.com, Inc., Sr. Unsecd. Note, 3.800%, 12/5/2024 | 141,958 | |
25,000 | Cintas Corp. No. 2, Sr. Unsecd. Note, 4.300%, 6/1/2021 | 25,776 | |
15,000 | Expedia Group, Inc., Sr. Unsecd. Note, Series WI, 3.250%, 2/15/2030 | 14,204 | |
65,000 | Expedia, Inc., Company Guarantee, 5.950%, 8/15/2020 | 65,052 | |
10,000 | University of Southern California, Sr. Unsecd. Note, 5.250%, 10/1/2111 | 16,645 | |
70,000 | Visa, Inc., Sr. Unsecd. Note, 3.150%, 12/14/2025 | 79,001 | |
15,000 | Visa, Inc., Sr. Unsecd. Note, 4.150%, 12/14/2035 | 20,046 | |
TOTAL | 575,590 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Consumer Non-Cyclical - Food/Beverage—1.0% | |||
$30,000 | Anheuser-Busch Cos LLC/Anheuser-Busch InBev Worldwide, Inc., Sr. Unsecd. Note, 4.700%, 2/1/2036 | $36,904 | |
85,000 | Campbell Soup Co., Sr. Unsecd. Note, 2.375%, 4/24/2030 | 90,212 | |
300,000 | Danone SA, Sr. Unsecd. Note, 144A, 2.947%, 11/2/2026 | 335,223 | |
140,000 | Flowers Foods, Inc., Sr. Unsecd. Note, 3.500%, 10/1/2026 | 151,393 | |
80,000 | General Mills, Inc., Sr. Unsecd. Note, 4.700%, 4/17/2048 | 115,788 | |
270,000 | Heineken NV, Sr. Unsecd. Note, 144A, 3.500%, 1/29/2028 | 310,735 | |
200,000 | Kerry Group Financial Services, Sr. Unsecd. Note, 144A, 3.200%, 4/9/2023 | 210,537 | |
15,000 | Kraft Heinz Foods Co., Sr. Unsecd. Note, 5.200%, 7/15/2045 | 17,131 | |
50,000 | Mead Johnson Nutrition Co., Sr. Unsecd. Note, 4.125%, 11/15/2025 | 58,544 | |
295,000 | PepsiCo, Inc., Sr. Unsecd. Note, 3.625%, 3/19/2050 | 385,571 | |
TOTAL | 1,712,038 | ||
Consumer Non-Cyclical - Health Care—0.2% | |||
135,000 | Agilent Technologies, Inc., Sr. Unsecd. Note, 2.750%, 9/15/2029 | 147,979 | |
15,000 | Agilent Technologies, Inc., Sr. Unsecd. Note, 3.200%, 10/1/2022 | 15,743 | |
180,000 | Dentsply Sirona, Inc., Sr. Unsecd. Note, 3.250%, 6/1/2030 | 197,314 | |
10,000 | Laboratory Corp. of America Holdings, Sr. Unsecd. Note, 3.750%, 8/23/2022 | 10,567 | |
TOTAL | 371,603 | ||
Consumer Non-Cyclical - Pharmaceuticals—0.5% | |||
500,000 | AbbVie, Inc., Sr. Unsecd. Note, 144A, 4.250%, 11/21/2049 | 642,039 | |
15,000 | Amgen, Inc., Sr. Unsecd. Note, 4.400%, 5/1/2045 | 20,095 | |
10,000 | Bristol-Myers Squibb Co., Sr. Unsecd. Note, Series WI, 4.125%, 6/15/2039 | 13,391 | |
15,000 | Johnson & Johnson, Sr. Unsecd. Note, 3.550%, 3/1/2036 | 18,747 | |
165,000 | Zoetis, Inc., Sr. Unsecd. Note, 3.000%, 5/15/2050 | 187,528 | |
TOTAL | 881,800 | ||
Consumer Non-Cyclical - Supermarkets—0.0% | |||
10,000 | Kroger Co., Sr. Unsecd. Note, 4.450%, 2/1/2047 | 13,096 | |
Energy - Independent—0.3% | |||
250,000 | Canadian Natural Resources Ltd., 3.900%, 2/1/2025 | 273,194 | |
125,000 | Cimarex Energy Co., Sr. Unsecd. Note, 3.900%, 5/15/2027 | 127,565 | |
20,000 | EQT Corp., Sr. Unsecd. Note, 3.900%, 10/1/2027 | 18,892 | |
TOTAL | 419,651 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Energy - Integrated—0.7% | |||
$135,000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 3.119%, 5/4/2026 | $150,665 | |
20,000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 3.224%, 4/14/2024 | 21,661 | |
300,000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 3.937%, 9/21/2028 | 353,744 | |
5,000 | ConocoPhillips, Company Guarantee, 6.500%, 2/1/2039 | 7,844 | |
270,000 | Exxon Mobil Corp., Sr. Unsecd. Note, 2.992%, 3/19/2025 | 297,349 | |
75,000 | Husky Energy, Inc., 4.000%, 4/15/2024 | 78,790 | |
240,000 | Husky Energy, Inc., Sr. Unsecd. Note, 4.400%, 4/15/2029 | 252,628 | |
TOTAL | 1,162,681 | ||
Energy - Midstream—0.5% | |||
20,000 | Energy Transfer Operating, Sr. Unsecd. Note, 5.500%, 6/1/2027 | 22,069 | |
115,000 | Energy Transfer Partners LP, Sr. Unsecd. Note, 4.050%, 3/15/2025 | 121,233 | |
75,000 | Energy Transfer Partners LP, Sr. Unsecd. Note, 4.900%, 2/1/2024 | 80,339 | |
10,000 | Energy Transfer Partners LP, Sr. Unsecd. Note, 6.125%, 12/15/2045 | 10,438 | |
170,000 | Enterprise Products Operating LLC, Sr. Unsecd. Note, 3.950%, 2/15/2027 | 193,947 | |
20,000 | Kinder Morgan Energy Partners LP, Sr. Unsecd. Note, Series MTN, 6.950%, 1/15/2038 | 27,899 | |
40,000 | MPLX LP, Sr. Unsecd. Note, 4.125%, 3/1/2027 | 43,736 | |
5,000 | MPLX LP, Sr. Unsecd. Note, 4.500%, 4/15/2038 | 5,332 | |
225,000 | MPLX LP, Sr. Unsecd. Note, 5.500%, 2/15/2049 | 269,922 | |
20,000 | Texas Eastern Transmission LP, Sr. Unsecd. Note, 144A, 2.800%, 10/15/2022 | 20,464 | |
10,000 | Western Gas Partners LP, Sr. Unsecd. Note, 4.750%, 8/15/2028 | 10,123 | |
30,000 | Williams Partners LP, Sr. Unsecd. Note, 4.125%, 11/15/2020 | 30,028 | |
TOTAL | 835,530 | ||
Energy - Oil Field Services—0.0% | |||
15,000 | Nabors Industries, Inc., Company Guarantee, 5.000%, 9/15/2020 | 14,942 | |
Energy - Refining—0.1% | |||
15,000 | HollyFrontier Corp., Sr. Unsecd. Note, 5.875%, 4/1/2026 | 16,480 | |
15,000 | Marathon Petroleum Corp., Sr. Unsecd. Note, 4.500%, 4/1/2048 | 16,819 | |
10,000 | Marathon Petroleum Corp., Sr. Unsecd. Note, 6.500%, 3/1/2041 | 13,099 | |
25,000 | Tesoro Corp., Sr. Unsecd. Note, 5.375%, 10/1/2022 | 24,854 | |
15,000 | Valero Energy Corp., Sr. Unsecd. Note, 4.350%, 6/1/2028 | 17,416 | |
TOTAL | 88,668 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - Banking—2.7% | |||
$74,000 | American Express Co., 2.650%, 12/2/2022 | $77,688 | |
250,000 | American Express Credit Corp., Sr. Unsecd. Note, Series MTN, 2.250%, 5/5/2021 | 253,332 | |
300,000 | Bank of America Corp., Sr. Unsecd. Note, Series GMTN, 3.500%, 4/19/2026 | 340,464 | |
250,000 | 4 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 0.946% (3-month USLIBOR +0.650%), 10/1/2021 | 250,280 |
10,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 3.499%, 5/17/2022 | 10,235 | |
100,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 5.000%, 5/13/2021 | 103,629 | |
200,000 | Bank of America Corp., Sub. Note, Series L, 3.950%, 4/21/2025 | 224,120 | |
15,000 | Bank of America Corp., Sub. Note, Series MTN, 4.200%, 8/26/2024 | 16,825 | |
15,000 | Bank of America Corp., Sub., Series MTN, 4.450%, 3/3/2026 | 17,344 | |
20,000 | Bank of New York Mellon, N.A., 3.400%, 5/15/2024 | 22,130 | |
200,000 | Citigroup, Inc., Sr. Unsecd. Note, 2.700%, 3/30/2021 | 203,153 | |
40,000 | Citigroup, Inc., Sr. Unsecd. Note, 2.876%, 7/24/2023 | 41,744 | |
15,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.142%, 1/24/2023 | 15,532 | |
250,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.300%, 4/27/2025 | 278,459 | |
170,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.400%, 5/1/2026 | 190,542 | |
15,000 | Citigroup, Inc., Sub. Note, 4.450%, 9/29/2027 | 17,483 | |
25,000 | City National Corp., Sr. Unsecd. Note, 5.250%, 9/15/2020 | 25,143 | |
30,000 | Comerica, Inc., 3.800%, 7/22/2026 | 32,772 | |
75,000 | Fifth Third Bancorp, Sr. Unsecd. Note, 3.650%, 1/25/2024 | 82,354 | |
40,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.200%, 2/23/2023 | 42,555 | |
275,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.625%, 1/22/2023 | 295,440 | |
150,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 6.250%, 2/1/2041 | 236,274 | |
10,000 | 5 | JPMorgan Chase & Co., Jr. Sub. Deb., Series X, 6.100%, 10/1/2024 | 10,547 |
25,000 | 5 | JPMorgan Chase & Co., Jr. Sub. Note, Series FF, 5.000%, 8/1/2024 | 25,179 |
20,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 3.559%, 4/23/2024 | 21,557 | |
15,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 3.882%, 7/24/2038 | 18,711 | |
400,000 | JPMorgan Chase & Co., Sub. Note, 3.375%, 5/1/2023 | 428,707 | |
300,000 | Morgan Stanley, 4.300%, 1/27/2045 | 406,895 | |
120,000 | Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 2.500%, 4/21/2021 | 121,975 | |
15,000 | Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 3.125%, 1/23/2023 | 15,954 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - Banking—continued | |||
$15,000 | Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 4.000%, 7/23/2025 | $17,264 | |
15,000 | Morgan Stanley, Sub. Note, Series MTN, 4.100%, 5/22/2023 | 16,313 | |
65,000 | Royal Bank of Canada, Sec. Fac. Bond, 2.100%, 10/14/2020 | 65,232 | |
10,000 | Royal Bank of Scotland Group PLC, Sub., 6.000%, 12/19/2023 | 11,274 | |
10,000 | State Street Corp., Sub. Deb., 3.031%, 11/1/2034 | 11,075 | |
45,000 | Sumitomo Mitsui Financial Group, Inc., Sr. Unsecd. Note, 3.102%, 1/17/2023 | 47,857 | |
130,000 | Truist Financial Corp., Sr. Unsecd. Note, 2.900%, 3/3/2021 | 131,717 | |
250,000 | US Bancorp, Sr. Unsecd. Note, Series MTN, 1.375%, 7/22/2030 | 253,344 | |
10,000 | Wells Fargo & Co., Series MTN, 4.100%, 6/3/2026 | 11,346 | |
15,000 | Wells Fargo & Co., Sr. Unsecd. Note, 3.069%, 1/24/2023 | 15,531 | |
10,000 | Westpac Banking Corp., Sub., Series GMTN, 4.322%, 11/23/2031 | 11,376 | |
TOTAL | 4,419,352 | ||
Financial Institution - Broker/Asset Mgr/Exchange—0.3% | |||
80,000 | Invesco Finance PLC, Sr. Unsecd. Note, 3.750%, 1/15/2026 | 89,438 | |
70,000 | Nuveen LLC, Sr. Unsecd. Note, 144A, 4.000%, 11/1/2028 | 84,135 | |
305,000 | Raymond James Financial, Inc., Sr. Unsecd. Note, 4.650%, 4/1/2030 | 377,706 | |
13,000 | Raymond James Financial, Inc., Sr. Unsecd. Note, 5.625%, 4/1/2024 | 14,933 | |
15,000 | XLIT Ltd., Sub., 4.450%, 3/31/2025 | 16,942 | |
TOTAL | 583,154 | ||
Financial Institution - Finance Companies—0.4% | |||
170,000 | AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, Sr. Unsecd. Note, 3.950%, 2/1/2022 | 171,337 | |
150,000 | AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, Sr. Unsecd. Note, 4.875%, 1/16/2024 | 152,552 | |
250,000 | GE Capital International Funding, Inc., Sr. Unsecd. Note, 4.418%, 11/15/2035 | 258,685 | |
25,000 | Santander UK Group Holdings PLC, Sr. Unsecd. Note, 3.125%, 1/8/2021 | 25,294 | |
TOTAL | 607,868 | ||
Financial Institution - Insurance - Life—0.7% | |||
200,000 | Aflac, Inc., Sr. Unsecd. Note, 3.625%, 6/15/2023 | 218,756 | |
25,000 | American International Group, Inc., 4.500%, 7/16/2044 | 30,932 | |
35,000 | American International Group, Inc., Sr. Unsecd. Note, 4.125%, 2/15/2024 | 39,124 | |
125,000 | American International Group, Inc., Sr. Unsecd. Note, 4.200%, 4/1/2028 | 147,555 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - Insurance - Life—continued | |||
$10,000 | Lincoln National Corp., Sr. Unsecd. Note, 4.200%, 3/15/2022 | $10,606 | |
275,000 | Mass Mutual Global Funding II, 144A, 2.000%, 4/15/2021 | 278,415 | |
10,000 | MetLife, Inc., Jr. Sub. Note, 10.750%, 8/1/2039 | 16,446 | |
15,000 | MetLife, Inc., Jr. Sub. Note, 6.400%, 12/15/2036 | 18,631 | |
250,000 | MetLife, Inc., Sr. Unsecd. Note, 3.600%, 4/10/2024 | 278,232 | |
15,000 | Penn Mutual Life Insurance Co., Sr. Note, 144A, 7.625%, 6/15/2040 | 22,198 | |
10,000 | Principal Financial Group, Inc., Sr. Unsecd. Note, 3.125%, 5/15/2023 | 10,673 | |
10,000 | Principal Financial Group, Inc., Sr. Unsecd. Note, 3.300%, 9/15/2022 | 10,554 | |
50,000 | Prudential Financial, Inc., Sr. Unsecd. Note, Series MTN, 6.200%, 11/15/2040 | 75,478 | |
TOTAL | 1,157,600 | ||
Financial Institution - Insurance - P&C—0.3% | |||
10,000 | Berkshire Hathaway Finance Corp., Sr. Unsecd. Note, 4.200%, 8/15/2048 | 13,634 | |
65,000 | Nationwide Mutual Insurance Co., Sub. Note, 144A, 9.375%, 8/15/2039 | 109,744 | |
260,000 | Nationwide Mutual Insurance Co., Sub., 144A, 4.350%, 4/30/2050 | 295,452 | |
TOTAL | 418,830 | ||
Financial Institution - REIT - Apartment—0.2% | |||
60,000 | Camden Property Trust, Sr. Unsecd. Note, 2.800%, 5/15/2030 | 66,827 | |
20,000 | Post Apartment Homes LP, Sr. Unsecd. Note, 3.375%, 12/1/2022 | 20,933 | |
200,000 | UDR, Inc., Sr. Unsecd. Note, Series MTN, 2.100%, 8/1/2032 | 204,728 | |
70,000 | UDR, Inc., Sr. Unsecd. Note, Series MTN, 2.950%, 9/1/2026 | 75,552 | |
TOTAL | 368,040 | ||
Financial Institution - REIT - Healthcare—0.1% | |||
50,000 | Healthcare Trust of America, 3.700%, 4/15/2023 | 52,629 | |
185,000 | Welltower, Inc., Sr. Unsecd. Note, 2.700%, 2/15/2027 | 196,840 | |
TOTAL | 249,469 | ||
Financial Institution - REIT - Office—0.1% | |||
50,000 | Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 3.900%, 6/15/2023 | 54,538 | |
70,000 | Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 3.950%, 1/15/2028 | 81,689 | |
TOTAL | 136,227 | ||
Financial Institution - REIT - Other—0.1% | |||
105,000 | WP Carey, Inc., Sr. Unsecd. Note, 3.850%, 7/15/2029 | 113,713 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - REIT - Other—continued | |||
$75,000 | WP Carey, Inc., Sr. Unsecd. Note, 4.600%, 4/1/2024 | $81,757 | |
TOTAL | 195,470 | ||
Financial Institution - REIT - Retail—0.2% | |||
300,000 | Kimco Realty Corp., Sr. Unsecd. Note, 2.700%, 10/1/2030 | 310,350 | |
50,000 | Kimco Realty Corp., Sr. Unsecd. Note, 3.400%, 11/1/2022 | 52,616 | |
TOTAL | 362,966 | ||
Supranational—0.0% | |||
30,000 | Corp Andina De Fomento, Sr. Unsecd. Note, 4.375%, 6/15/2022 | 31,684 | |
Technology—0.8% | |||
10,000 | Apple, Inc., 3.850%, 5/4/2043 | 13,002 | |
30,000 | Apple, Inc., Sr. Unsecd. Note, 2.400%, 5/3/2023 | 31,730 | |
200,000 | Apple, Inc., Sr. Unsecd. Note, 2.950%, 9/11/2049 | 230,771 | |
20,000 | Corning, Inc., Unsecd. Note, 4.750%, 3/15/2042 | 25,386 | |
240,000 | Diamond 1 Finance Corp./Diamond 2 Finance Corp., Sr. Secd. Note, 144A, 6.020%, 6/15/2026 | 281,568 | |
125,000 | Equifax, Inc., Sr. Unsecd. Note, 2.300%, 6/1/2021 | 126,591 | |
53,000 | Fidelity National Information Services, Inc., Sr. Unsecd. Note, 3.500%, 4/15/2023 | 56,856 | |
110,000 | Fiserv, Inc., Sr. Unsecd. Note, 3.500%, 7/1/2029 | 127,524 | |
70,000 | Hewlett Packard Enterprise Co., Sr. Unsecd. Note, 3.600%, 10/15/2020 | 70,223 | |
20,000 | Ingram Micro, Inc., Sr. Unsecd. Note, 5.000%, 8/10/2022 | 20,321 | |
265,000 | Intel Corp., Sr. Unsecd. Note, 3.400%, 3/25/2025 | 298,228 | |
15,000 | Microsoft Corp., Sr. Unsecd. Note, 3.450%, 8/8/2036 | 18,803 | |
10,000 | Verisk Analytics, Inc., Sr. Unsecd. Note, 4.125%, 9/12/2022 | 10,718 | |
50,000 | Verisk Analytics, Inc., Sr. Unsecd. Note, 5.500%, 6/15/2045 | 74,184 | |
TOTAL | 1,385,905 | ||
Technology Services—0.0% | |||
5,000 | Global Payments, Inc., Sr. Unsecd. Note, 3.200%, 8/15/2029 | 5,594 | |
Transportation - Airlines—0.1% | |||
30,000 | Delta Air Lines, Inc., Sr. Unsecd. Note, 2.900%, 10/28/2024 | 26,054 | |
110,000 | Southwest Airlines Co., Sr. Unsecd. Note, 5.250%, 5/4/2025 | 117,931 | |
TOTAL | 143,985 | ||
Transportation - Railroads—0.2% | |||
50,000 | Burlington Northern Santa Fe Corp., Deb., 5.750%, 5/1/2040 | 75,484 | |
30,000 | Kansas City Southern Industries, Inc., Sr. Unsecd. Note, 3.000%, 5/15/2023 | 31,501 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Transportation - Railroads—continued | |||
$225,000 | Kansas City Southern Industries, Inc., Sr. Unsecd. Note, 3.125%, 6/1/2026 | $244,772 | |
TOTAL | 351,757 | ||
Transportation - Services—0.3% | |||
15,000 | Enterprise Rent-A-Car USA Finance Co., Sr. Unsecd. Note, 144A, 5.625%, 3/15/2042 | 18,594 | |
20,000 | FedEx Corp., Sr. Unsecd. Note, 3.900%, 2/1/2035 | 22,812 | |
25,000 | Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 3.650%, 7/29/2021 | 25,674 | |
70,000 | Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 2.800%, 3/1/2022 | 72,304 | |
200,000 | Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 3.750%, 6/9/2023 | 215,351 | |
30,000 | United Parcel Service, Inc., Sr. Unsecd. Note, 3.125%, 1/15/2021 | 30,362 | |
125,000 | United Parcel Service, Inc., Sr. Unsecd. Note, 3.900%, 4/1/2025 | 142,869 | |
TOTAL | 527,966 | ||
Utility - Electric—1.4% | |||
70,000 | Consolidated Edison Co., Sr. Unsecd. Note, Series 20B, 3.950%, 4/1/2050 | 90,181 | |
70,000 | Electricite de France SA, Note, 144A, 5.600%, 1/27/2040 | 95,213 | |
300,000 | Electricite de France SA, Sr. Unsecd. Note, 144A, 4.500%, 9/21/2028 | 360,539 | |
140,000 | Emera US Finance LP, Sr. Unsecd. Note, 4.750%, 6/15/2046 | 182,376 | |
280,000 | Enel Finance International NV, Sr. Unsecd. Note, 144A, 4.625%, 9/14/2025 | 324,004 | |
170,000 | EverSource Energy, Sr. Unsecd. Note, 3.350%, 3/15/2026 | 189,521 | |
200,000 | Exelon Corp., Sr. Unsecd. Note, 3.400%, 4/15/2026 | 226,631 | |
100,000 | Exelon Generation Co. LLC, Sr. Unsecd. Note, 4.250%, 6/15/2022 | 106,075 | |
10,000 | Great Plains Energy, Inc., Note, 4.850%, 6/1/2021 | 10,259 | |
110,000 | National Rural Utilities Cooperative Finance Corp., Sr. Sub. Note, 5.250%, 4/20/2046 | 118,918 | |
25,000 | National Rural Utilities Cooperative Finance Corp., Sr. Unsecd. Note, Series MTNC, 8.000%, 3/1/2032 | 40,036 | |
250,000 | PPL Capital Funding, Inc., Sr. Unsecd. Note, 3.100%, 5/15/2026 | 278,427 | |
175,000 | Southern Co., Sr. Unsecd. Note, 3.250%, 7/1/2026 | 198,867 | |
40,000 | UIL Holdings Corp., Sr. Unsecd. Note, 4.625%, 10/1/2020 | 40,152 | |
TOTAL | 2,261,199 | ||
Utility - Natural Gas—0.4% | |||
50,000 | Enbridge Energy Partners LP, Sr. Unsecd. Note, 4.200%, 9/15/2021 | 51,555 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Utility - Natural Gas—continued | |||
$65,000 | National Fuel Gas Co., Sr. Unsecd. Note, 3.750%, 3/1/2023 | $67,058 | |
445,000 | National Fuel Gas Co., Sr. Unsecd. Note, 5.500%, 1/15/2026 | 481,658 | |
15,000 | Sempra Energy, Sr. Unsecd. Note, 2.900%, 2/1/2023 | 15,856 | |
5,000 | TransCanada PipeLines Ltd., Sr. Unsecd. Note, 6.200%, 10/15/2037 | 7,062 | |
TOTAL | 623,189 | ||
TOTAL CORPORATE BONDS (IDENTIFIED COST $22,511,566) | 25,332,397 | ||
MORTGAGE-BACKED SECURITIES—0.5% | |||
50,196 | Federal Home Loan Mortgage Corp., Pool G07801, 4.000%, 10/1/2044 | 54,959 | |
9,695 | Federal National Mortgage Association, Pool 357761, 5.500%, 5/1/2035 | 11,293 | |
1,379 | Federal National Mortgage Association, Pool 728709, 5.500%, 7/1/2033 | 1,596 | |
40,278 | Federal National Mortgage Association, Pool 932864, 4.000%, 12/1/2040 | 44,165 | |
64,575 | Federal National Mortgage Association, Pool AB7859, 3.500%, 2/1/2043 | 70,596 | |
46,873 | Federal National Mortgage Association, Pool AD6938, 4.500%, 6/1/2040 | 52,398 | |
31,077 | Federal National Mortgage Association, Pool AQ0945, 3.000%, 11/1/2042 | 33,423 | |
37,281 | Federal National Mortgage Association, Pool AT2127, 3.000%, 4/1/2043 | 40,096 | |
26,167 | Federal National Mortgage Association, Pool AT7861, 3.000%, 6/1/2028 | 27,696 | |
58,172 | Federal National Mortgage Association, Pool BM4388, 4.000%, 8/1/2048 | 62,587 | |
26,095 | Federal National Mortgage Association, Pool BM5024, 3.000%, 11/1/2048 | 27,608 | |
43,728 | Federal National Mortgage Association, Pool BM5246, 3.500%, 11/1/2048 | 46,179 | |
35,465 | Federal National Mortgage Association, Pool CA0833, 3.500%, 12/1/2047 | 37,487 | |
36,102 | Federal National Mortgage Association, Pool CA4427, 3.000%, 10/1/2049 | 38,207 | |
29,801 | Federal National Mortgage Association, Pool FM0008, 3.500%, 8/1/2049 | 31,667 | |
56,377 | Federal National Mortgage Association, Pool FM1000, 3.000%, 4/1/2047 | 59,718 |
Shares or Principal Amount | Value | ||
MORTGAGE-BACKED SECURITIES—continued | |||
$29,673 | Federal National Mortgage Association, Pool FM1221, 3.500%, 7/1/2049 | $31,762 | |
35,481 | Federal National Mortgage Association, Pool MA0500, 5.000%, 8/1/2040 | 40,553 | |
40,928 | Federal National Mortgage Association, Pool MA0666, 4.500%, 3/1/2041 | 45,535 | |
44,967 | Federal National Mortgage Association, Pool MA1430, 3.000%, 5/1/2043 | 48,362 | |
51,944 | Federal National Mortgage Association, Pool MA2803, 2.500%, 11/1/2031 | 54,634 | |
26,719 | Government National Mortgage Association, Pool MA0625, 3.500%, 12/20/2042 | 29,049 | |
19,768 | Government National Mortgage Association, Pool MA1376, 4.000%, 10/20/2043 | 21,639 | |
TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $860,957) | 911,209 | ||
U.S. TREASURIES—1.0% | |||
169,921 | 6 | U.S. Treasury Inflation-Protected Notes, 0.125%, 1/15/2022 | 172,853 |
448,443 | U.S. Treasury Inflation-Protected Notes, 0.125%, 1/15/2030 | 497,329 | |
299,181 | U.S. Treasury Inflation-Protected Notes, 0.250%, 2/15/2050 | 365,048 | |
137,515 | U.S. Treasury Inflation-Protected Notes, 1.375%, 2/15/2044 | 199,638 | |
100,000 | United States Treasury Bond, 1.250%, 5/15/2050 | 101,237 | |
50,000 | United States Treasury Bond, 4.500%, 2/15/2036 | 77,923 | |
155,000 | United States Treasury Note, 0.625%, 5/15/2030 | 156,257 | |
25,000 | United States Treasury Note, 2.125%, 9/30/2021 | 25,575 | |
TOTAL U.S. TREASURIES (IDENTIFIED COST $1,465,407) | 1,595,860 | ||
MUNICIPAL BONDS—0.6% | |||
200,000 | Klein, TX Independent School District, Unlimited Tax Schoolhouse and Refunding Bonds (Series 2020), (GTD by Texas Permanent School Fund Guarantee Program), 5.000%, 8/1/2028 | 267,466 | |
125,000 | Metropolitan Government Nashville & Davidson County, TN, GO Improvement Bonds (Series 2018), 4.000%, 7/1/2028 | 155,101 | |
200,000 | New York State Dormitory Authority State Personal Income Tax Revenue (New York State Personal Income Tax Revenue Bond Fund), State Personal Income Tax Revenue Bonds (Series 2019D), 4.000%, 2/15/2037 | 239,860 | |
30,000 | Texas State Transportation Commission—State Highway Fund, 5.178%, 4/1/2030 | 38,834 | |
250,000 | Washington State, Various Purpose GO Bonds (Series 2020C), 5.000%, 2/1/2044 | 328,800 | |
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $1,006,938) | 1,030,061 |
Shares or Principal Amount | Value | ||
EXCHANGE-TRADED FUND—7.5% | |||
$201,000 | iShares MSCI EAFE ETF (IDENTIFIED COST $13,521,274) | $12,472,050 | |
GOVERNMENT AGENCY—0.2% | |||
250,000 | Federal National Mortgage Association Notes, 0.625%, 4/22/2025 (IDENTIFIED COST $249,512) | 252,458 | |
INVESTMENT COMPANIES—18.4% | |||
281,727 | Federated Bank Loan Core Fund | 2,617,248 | |
324,710 | Emerging Markets Core Fund | 3,240,602 | |
1,431,638 | Federated Hermes Government Obligations Fund, Premier Shares, 0.10%7 | 1,431,638 | |
5,424,609 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.21%7 | 5,427,864 | |
630,661 | High Yield Bond Portfolio | 3,878,566 | |
1,139,741 | Federated Mortgage Core Fund | 11,545,574 | |
289,145 | Project and Trade Finance Core Fund | 2,538,696 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $30,864,121) | 30,680,188 | ||
TOTAL INVESTMENT IN SECURITIES—100.8% (IDENTIFIED COST $152,131,483)8 | 167,890,927 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.8)%9 | (1,332,334) | ||
TOTAL NET ASSETS—100% | $166,558,593 |
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized Appreciation (Depreciation) |
Long Futures | ||||
1United States Treasury Note 2-Year Long Futures | 60 | $13,259,062 | September 2020 | $12,000 |
1United States Treasury Note 10-Year Ultra Long Futures | 5 | $796,250 | September 2020 | $13,957 |
Short Futures | ||||
1United States Treasury Note 5-Year Short Futures | 15 | $1,891,875 | September 2020 | $(7,215) |
1United States Treasury Note 10-Year Short Futures | 2 | $280,156 | September 2020 | $(1,161) |
NET UNREALIZED APPRECIATION ON FUTURES CONTRACTS | $17,581 |
Affiliates | Balance of Shares Held 7/31/2019 | Purchases/ Additions | Sales/ Reductions |
Federated Bank Loan Core Fund | 135,857 | 270,061 | (124,191) |
Emerging Markets Core Fund | 278,303 | 352,148 | (305,741) |
Federated Hermes Government Obligations Fund, Premier Shares* | 145,972 | 121,643,726 | (120,358,060) |
Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | 5,815,511 | 56,702,873 | (57,093,775) |
High Yield Bond Portfolio | 691,626 | 663,759 | (724,724) |
Federated Mortgage Core Fund | 1,314,242 | 1,498,600 | (1,673,101) |
Project and Trade Finance Core Fund | 362,119 | 88,131 | (161,105) |
TOTAL OF AFFILIATED TRANSACTIONS | 8,743,630 | 181,219,298 | (180,440,697) |
Balance of Shares Held 7/31/2020 | Value | Change in Unrealized Appreciation/ Depreciation | Net Realized Gain/(Loss) | Dividend Income |
281,727 | $2,617,248 | $10,490 | $(29,846) | $81,223 |
324,710 | $3,240,602 | $126,234 | $8,304 | $132,095 |
1,431,638 | $1,431,638 | N/A | N/A | $18,121 |
5,424,609 | $5,427,864 | $(649) | $7,220 | $43,855 |
630,661 | $3,878,566 | $90,421 | $(7,839) | $222,360 |
1,139,741 | $11,545,574 | $71,818 | $258,658 | $375,915 |
289,145 | $2,538,696 | $(12,425) | $(88,527) | $126,295 |
9,522,231 | $30,680,188 | $285,889 | $147,970 | $999,864 |
* | 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 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. |
3 | JPMorgan Chase & Co. has fully and unconditionally guaranteed Bear Stearns’ outstanding registered debt securities. |
4 | Floating/variable note with current rate and current maturity or next reset date shown. |
5 | Perpetual Bond Security. The maturity date reflects the next call date. |
6 | 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. |
7 | 7-day net yield. |
8 | The cost of investments for federal tax purposes amounts to $152,194,326. |
9 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | $90,992,933 | $— | $— | $90,992,933 |
International | 762,363 | — | — | 762,363 |
Debt Securities: | ||||
Asset-Backed Securities | — | 910,849 | — | 910,849 |
Collateralized Mortgage Obligations | — | 7,951 | — | 7,951 |
Commercial Mortgage-Backed Securities | — | 2,942,608 | — | 2,942,608 |
Corporate Bonds | — | 25,332,397 | — | 25,332,397 |
Mortgage-Backed Securities | — | 911,209 | — | 911,209 |
U.S. Treasuries | — | 1,595,860 | — | 1,595,860 |
Municipal Bonds | — | 1,030,061 | — | 1,030,061 |
Government Agency | — | 252,458 | — | 252,458 |
Exchange-Traded Fund | 12,472,050 | — | — | 12,472,050 |
Investment Companies1 | 28,141,492 | — | — | 30,680,188 |
TOTAL SECURITIES | $132,368,838 | $32,983,393 | $— | $167,890,927 |
Other Financial Instruments2 | ||||
Assets | $25,957 | $— | $— | $25,957 |
Liabilities | (8,376) | — | — | (8,376) |
TOTAL OTHER FINANCIAL INSTRUMENTS | $17,581 | $— | $— | $17,581 |
1 | As permitted by U.S. generally accepted accounting principles (GAAP), an Investment Company valued at $2,538,696 is measured at fair value using the net asset value (NAV) per share practical expedient and has not been categorized in the chart above, but is included in the Total column. The amount included herein is intended to permit reconciliation of the fair value classifications to the amounts presented on the Statement of Assets and Liabilities.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. |
ETF | —Exchange - Traded Fund |
FREMF | —Freddie Mac Multifamily K-Deals |
GMTN | —Global Medium Term Note |
GO | —General Obligation |
GTD | —Guaranteed |
LIBOR | —London Interbank Offered Rate |
MTN | —Medium Term Note |
REIT | —Real Estate Investment Trust |
REMIC | —Real Estate Mortgage Investment Conduit |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $18.71 | $19.59 | $17.74 | $16.52 | $16.83 |
Income From Investment Operations: | |||||
Net investment income1 | 0.19 | 0.25 | 0.21 | 0.26 | 0.24 |
Net realized and unrealized gain (loss) | 1.46 | 0.57 | 1.89 | 1.23 | (0.31) |
TOTAL FROM INVESTMENT OPERATIONS | 1.65 | 0.82 | 2.10 | 1.49 | (0.07) |
Less Distributions: | |||||
Distributions from net investment income | (0.24) | (0.19) | (0.25) | (0.27) | (0.24) |
Distributions from net realized gain | (0.53) | (1.51) | — | — | — |
TOTAL DISTRIBUTIONS | (0.77) | (1.70) | (0.25) | (0.27) | (0.24) |
Net Asset Value, End of Period | $19.59 | $18.71 | $19.59 | $17.74 | $16.52 |
Total Return2 | 9.08% | 5.28% | 11.91% | 9.11% | (0.37)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.31% | 1.31% | 1.32% | 1.26% | 1.30% |
Net investment income | 1.04% | 1.35% | 1.11% | 1.51% | 1.51% |
Expense waiver/reimbursement4 | 0.07% | 0.08% | 0.06% | 0.15% | 0.10% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $95,559 | $84,243 | $61,553 | $61,405 | $61,245 |
Portfolio turnover | 152% | 92% | 89% | 82% | 98% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $18.50 | $19.31 | $17.49 | $16.30 | $16.59 |
Income From Investment Operations: | |||||
Net investment income1 | 0.05 | 0.11 | 0.06 | 0.13 | 0.12 |
Net realized and unrealized gain (loss) | 1.43 | 0.59 | 1.87 | 1.20 | (0.31) |
TOTAL FROM INVESTMENT OPERATIONS | 1.48 | 0.70 | 1.93 | 1.33 | (0.19) |
Less Distributions: | |||||
Distributions from net investment income | (0.10) | (0.00)2 | (0.11) | (0.14) | (0.10) |
Distributions from net realized gain | (0.53) | (1.51) | — | — | — |
TOTAL DISTRIBUTIONS | (0.63) | (1.51) | (0.11) | (0.14) | (0.10) |
Net Asset Value, End of Period | $19.35 | $18.50 | $19.31 | $17.49 | $16.30 |
Total Return3 | 8.25% | 4.54% | 11.09% | 8.23% | (1.10)% |
Ratios to Average Net Assets: | |||||
Net expenses4 | 2.06% | 2.06% | 2.07% | 2.01% | 2.05% |
Net investment income | 0.29% | 0.60% | 0.35% | 0.75% | 0.76% |
Expense waiver/reimbursement5 | 0.09% | 0.10% | 0.04% | 0.13% | 0.08% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $15,043 | $15,492 | $27,577 | $29,007 | $29,152 |
Portfolio turnover | 152% | 92% | 89% | 82% | 98% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
3 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $18.78 | $19.64 | $17.79 | $16.57 | $16.87 |
Income From Investment Operations: | |||||
Net investment income1 | 0.24 | 0.30 | 0.26 | 0.30 | 0.28 |
Net realized and unrealized gain (loss) | 1.46 | 0.58 | 1.89 | 1.23 | (0.30) |
TOTAL FROM INVESTMENT OPERATIONS | 1.70 | 0.88 | 2.15 | 1.53 | (0.02) |
Less Distributions: | |||||
Distributions from net investment income | (0.28) | (0.23) | (0.30) | (0.31) | (0.28) |
Distributions from net realized gain | (0.53) | (1.51) | — | — | — |
TOTAL DISTRIBUTIONS | (0.81) | (1.74) | (0.30) | (0.31) | (0.28) |
Net Asset Value, End of Period | $19.67 | $18.78 | $19.64 | $17.79 | $16.57 |
Total Return2 | 9.33% | 5.61% | 12.15% | 9.36% | (0.07)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.06% | 1.06% | 1.07% | 1.00% | 1.05% |
Net investment income | 1.29% | 1.62% | 1.35% | 1.77% | 1.76% |
Expense waiver/reimbursement4 | 0.07% | 0.08% | 0.02% | 0.12% | 0.05% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $54,440 | $53,035 | $54,358 | $39,136 | $47,757 |
Portfolio turnover | 152% | 92% | 89% | 82% | 98% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31 | 2020 | 2019 | 2018 | 20171 | 2016 |
Net Asset Value, Beginning of Period | $18.74 | $19.62 | $17.76 | $16.49 | $16.80 |
Income From Investment Operations: | |||||
Net investment income2 | 0.24 | 0.27 | 0.26 | 0.28 | 0.20 |
Net realized and unrealized gain (loss) | 1.44 | 0.60 | 1.90 | 1.24 | (0.31) |
TOTAL FROM INVESTMENT OPERATIONS | 1.68 | 0.87 | 2.16 | 1.52 | (0.11) |
Less Distributions: | |||||
Distributions from net investment income | (0.28) | (0.24) | (0.30) | (0.25) | (0.20) |
Distributions from net realized gain | (0.53) | (1.51) | — | — | — |
TOTAL DISTRIBUTIONS | (0.81) | (1.75) | (0.30) | (0.25) | (0.20) |
Net Asset Value, End of Period | $19.61 | $18.74 | $19.62 | $17.76 | $16.49 |
Total Return3 | 9.26% | 5.56% | 12.24% | 9.32% | (0.59)% |
Ratios to Average Net Assets: | |||||
Net expenses4 | 1.05% | 1.05% | 1.06% | 1.05% | 1.56% |
Net investment income | 1.29% | 1.40% | 1.36% | 1.64% | 1.27% |
Expense waiver/reimbursement5 | 0.03% | 0.06% | 0.02% | 0.06% | 0.04% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $1,516 | $3,165 | $12,178 | $10,439 | $577 |
Portfolio turnover | 152% | 92% | 89% | 82% | 98% |
1 | Effective September 1, 2016, the Fund’s Class R Shares were redesignated as Class R6 Shares. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Assets: | ||
Investment in securities, at value including $1,393,833 of securities loaned and $30,680,188 of investment in affiliated holdings* (identified cost $152,131,483) | $167,890,927 | |
Cash denominated in foreign currencies (identified cost $3,315) | 3,402 | |
Income receivable | 296,519 | |
Income receivable from affiliated holdings | 75,691 | |
Receivable for investments sold | 133,269 | |
Receivable for shares sold | 111,257 | |
Receivable for variation margin on futures contracts | 2,331 | |
TOTAL ASSETS | 168,513,396 | |
Liabilities: | ||
Payable for investments purchased | $174,405 | |
Payable for shares redeemed | 133,105 | |
Payable for collateral due to broker for securities lending | 1,431,638 | |
Payable for investment adviser fee (Note 5) | 3,105 | |
Payable for administrative fee (Note 5) | 354 | |
Payable for auditing fees | 34,300 | |
Payable for distribution services fee (Note 5) | 9,376 | |
Payable for other service fees (Notes 2 and 5) | 44,799 | |
Payable for share registration costs | 42,199 | |
Accrued expenses (Note 5) | 81,522 | |
TOTAL LIABILITIES | 1,954,803 | |
Net assets for 8,501,729 shares outstanding | $166,558,593 | |
Net Assets Consist of: | ||
Paid-in capital | $148,508,687 | |
Total distributable earnings (loss) | 18,049,906 | |
TOTAL NET ASSETS | $166,558,593 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
Class A Shares: | ||
Net asset value per share ($95,559,269 ÷ 4,878,534 shares outstanding), no par value, unlimited shares authorized | $19.59 | |
Offering price per share (100/94.50 of $19.59) | $20.73 | |
Redemption proceeds per share | $19.59 | |
Class C Shares: | ||
Net asset value per share ($15,043,186 ÷ 777,597 shares outstanding), no par value, unlimited shares authorized | $19.35 | |
Offering price per share | $19.35 | |
Redemption proceeds per share (99.00/100 of $19.35) | $19.16 | |
Institutional Shares: | ||
Net asset value per share ($54,440,255 ÷ 2,768,314 shares outstanding), no par value, unlimited shares authorized | $19.67 | |
Offering price per share | $19.67 | |
Redemption proceeds per share | $19.67 | |
Class R6 Shares: | ||
Net asset value per share ($1,515,883 ÷ 77,284 shares outstanding), no par value, unlimited shares authorized | $19.61 | |
Offering price per share | $19.61 | |
Redemption proceeds per share | $19.61 |
* | See information listed after the Fund’s Portfolio of Investments. |
Investment Income: | |||
Dividends (including $981,121 received from affiliated holdings* and net of foreign taxes withheld of $846) | $2,684,949 | ||
Interest | 986,659 | ||
Net income on securities loaned (includes $18,743 earned from affiliated holdings* related to cash collateral balances) (Note 2) | 26,143 | ||
TOTAL INCOME | 3,697,751 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $1,179,440 | ||
Administrative fee (Note 5) | 128,880 | ||
Custodian fees | 57,314 | ||
Transfer agent fees (Note 2) | 163,312 | ||
Directors’/Trustees’ fees (Note 5) | 2,258 | ||
Auditing fees | 34,300 | ||
Legal fees | 7,722 | ||
Portfolio accounting fees | 104,595 | ||
Distribution services fee (Note 5) | 111,375 | ||
Other service fees (Notes 2 and 5) | 247,671 | ||
Share registration costs | 61,531 | ||
Printing and postage | 29,726 | ||
Miscellaneous (Note 5) | 31,931 | ||
TOTAL EXPENSES | 2,160,055 | ||
Waiver and Reimbursements: | |||
Waiver/reimbursement of investment adviser fee (Note 5) | $(49,944) | ||
Reimbursement of other operating expenses (Notes 2 and 5) | (66,021) | ||
TOTAL WAIVER AND REIMBURSEMENTS | (115,965) | ||
Net expenses | 2,044,090 | ||
Net investment income | $1,653,661 |
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts and Foreign Currency Transactions: | |||
Net realized gain on investments (including net realized gain of $147,970 on sales of investments in affiliated holdings*) and foreign currency transactions | $3,973,443 | ||
Net realized gain on futures contracts | 465,553 | ||
Net change in unrealized appreciation of investments (including net change in unrealized depreciation of $285,889 of investments in affiliated holdings*) | 7,132,217 | ||
Net change in unrealized appreciation/depreciation of translation of assets and liabilities in foreign currency | 135 | ||
Net change in unrealized appreciation of futures contracts | (12,191) | ||
Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency transactions | 11,559,157 | ||
Change in net assets resulting from operations | $13,212,818 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31 | 2020 | 2019 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $1,653,661 | $2,133,076 |
Net realized gain | 4,438,996 | 7,525,854 |
Net change in unrealized appreciation/depreciation | 7,120,161 | (1,859,525) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 13,212,818 | 7,799,405 |
Distributions to Shareholders: | ||
Class A Shares | (3,813,305) | (6,723,192) |
Class C Shares | (539,280) | (1,044,348) |
Institutional Shares | (2,518,867) | (5,847,283) |
Class R6 Shares | (108,342) | (242,234) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (6,979,794) | (13,857,057) |
Share Transactions: | ||
Proceeds from sale of shares | 29,726,646 | 63,670,084 |
Proceeds from shares issued in connection with the tax-free transfer of assets from PNC Balanced Allocation Fund | 11,298,197 | — |
Net asset value of shares issued to shareholders in payment of distributions declared | 6,622,021 | 12,933,369 |
Cost of shares redeemed | (43,256,472) | (70,276,399) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 4,390,392 | 6,327,054 |
Change in net assets | 10,623,416 | 269,402 |
Net Assets: | ||
Beginning of period | 155,935,177 | 155,665,775 |
End of period | $166,558,593 | $155,935,177 |
Shares of the Fund Issued | Acquired Fund’s Net Assets Received | Unrealized Appreciation1 | Net Assets of the Fund Immediately Prior to Combination | Net Assets of the Fund Immediately After Combination |
593,132 | $11,298,197 | $2,170,935 | $154,177,771 | $165,475,968 |
1 | Unrealized Appreciation is included in the Net Assets Received amount shown above. |
Net investment income | $1,721,772 |
Net realized and unrealized gain on investments | 11,959,769 |
Net increase in net assets resulting from operations | $13,681,541 |
■ | 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 the Fund’s Board of Trustees (the “Trustees”). |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | 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 asked quotations. |
■ | Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, 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. |
■ | 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. |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $96,349 | $(36,757) |
Class C Shares | 16,470 | (8,270) |
Institutional Shares | 49,446 | (20,994) |
Class R6 Shares | 1,047 | — |
TOTAL | $163,312 | $(66,021) |
Other Service Fees Incurred | |
Class A Shares | $210,546 |
Class C Shares | 37,125 |
TOTAL | $247,671 |
Market Value of Securities Loaned | Collateral Received |
$1,393,833 | $1,431,638 |
Fair Value of Derivative Instruments | ||
Assets | ||
Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||
Interest rate contracts | Receivable for variation margin on futures contracts | $ 17,581* |
* | Includes cumulative net appreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |
Futures Contracts | |
Interest rate contracts | $465,553 |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |
Futures Contracts | |
Interest rate contracts | $(12,191) |
Year Ended July 31 | 2020 | 2019 | ||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 602,633 | $11,030,108 | 1,017,180 | $18,426,997 |
Conversion of Class C Shares to Class A Shares | — | — | 577,227 | 11,313,650 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | 425,056 | 8,093,068 | — | — |
Shares issued to shareholders in payment of distributions declared | 191,088 | 3,554,535 | 356,509 | 5,992,523 |
Shares redeemed | (842,124) | (15,137,260) | (591,801) | (10,713,481) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 376,653 | $7,540,451 | 1,359,115 | $25,019,689 |
Year Ended July 31 | 2020 | 2019 | ||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 156,794 | $2,848,857 | 295,829 | $5,229,357 |
Conversion of Class C Shares to Class A Shares | — | — | (585,290) | (11,313,650) |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | 24,943 | 468,430 | — | — |
Shares issued to shareholders in payment of distributions declared | 26,632 | 488,464 | 54,548 | 903,860 |
Shares redeemed | (268,255) | (4,750,816) | (355,430) | (6,666,352) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (59,886) | $(945,065) | (590,343) | $(11,846,785) |
Year Ended July 31 | 2020 | 2019 | ||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 806,718 | $15,223,232 | 1,337,055 | $24,174,708 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | 143,133 | 2,736,699 | — | — |
Shares issued to shareholders in payment of distributions declared | 132,428 | 2,472,322 | 344,529 | 5,809,112 |
Shares redeemed | (1,138,214) | (21,041,358) | (1,624,656) | (28,538,979) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (55,935) | $(609,105) | 56,928 | $1,444,841 |
Year Ended July 31 | 2020 | 2019 | ||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 33,882 | $624,449 | 235,953 | $4,525,372 |
Shares issued to shareholders in payment of distributions declared | 5,727 | 106,700 | 13,548 | 227,874 |
Shares redeemed | (131,269) | (2,327,038) | (701,361) | (13,043,937) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | (91,660) | $(1,595,889) | (451,860) | $(8,290,691) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 169,172 | $4,390,392 | 373,840 | $6,327,054 |
Increase (Decrease) | |
Paid-In Capital | Total Distributable Earnings (Loss) |
$32,889 | $(32,889) |
2020 | 2019 | |
Ordinary income1 | $4,219,861 | $7,714,224 |
Long-term capital gains | $2,759,933 | $6,142,833 |
1 | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Undistributed ordinary income2 | $13,453 |
Net unrealized appreciation | $15,677,408 |
Undistributed long-term capital gains | $2,359,045 |
Capital loss deferrals | $(19,328) |
2 | For tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings. |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Percentage of Average Daily Net Assets of Class | |
Class A Shares | 0.05% |
Class C Shares | 0.75% |
Distribution Services Fees Incurred | |
Class C Shares | $111,375 |
Purchases | $202,460,944 |
Sales | $198,573,237 |
September 22, 2020
Beginning Account Value 2/1/2020 | Ending Account Value 7/31/2020 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,048.20 | $6.67 |
Class C Shares | $1,000 | $1,044.30 | $10.47 |
Institutional Shares | $1,000 | $1,049.60 | $5.40 |
Class R6 Shares | $1,000 | $1,049.20 | $5.40 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,018.40 | $6.57 |
Class C Shares | $1,000 | $1,014.60 | $10.32 |
Institutional Shares | $1,000 | $1,019.60 | $5.32 |
Class R6 Shares | $1,000 | $1,019.60 | $5.32 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.31% |
Class C Shares | 2.06% |
Institutional Shares | 1.06% |
Class R6 Shares | 1.06% |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: May 2006 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2016 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company; President of some of the Funds in the Federated Hermes Fund Family and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; President and CEO of Passport Research, Ltd.; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Hermes, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. and President, Technology, Federated Services Company. |
* | Reasons for “interested” status: J. Christopher Donahue and John B. Fisher are interested due to their beneficial ownership of shares of Federated Hermes, Inc. and due to positions they hold with Federated Hermes, Inc. and its subsidiaries. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Chairman of the Board of Directors, Director, and Chairman of the Compensation Committee, KLX Energy Services Holdings, Inc. (oilfield services); former Director of KLX Corp. (aerospace). Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm) and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Director, Member of the Audit Committee, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green was appointed by the Supreme Court of Pennsylvania to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); Director, Catholic Charities, Pittsburgh; and Director CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; and Director and Chair, North Catholic High School, Inc. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant and Author. Other Directorships Held: None. Qualifications: Mr. Mansfield has served as a Marine Corps officer and in several banking, business management, educational roles and directorship positions throughout his long career. He remains active as a Management Consultant and Author. |
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity and Director, The Golisano Children’s Museum of Naples, Florida. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CNX Resources Corporation (formerly known as CONSOL Energy Inc.); and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp. and Edgewood Services, Inc.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: June 2006 | Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: June 2012 | Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments. |
■ | the liquidity risk framework used to assess, manage, and periodically review each Fund’s liquidity risk and the results of this assessment, including a review of the Funds’ access to other available funding sources such as the Funds’ interfund lending facility, redemptions in-kind and committed lines of credit and confirmation that the Fund did not have to access any of these alternative funding sources during the Period; |
■ | the periodic classifications of the Fund’s investments into one of four liquidity categories and the methodologies and inputs used to classify the investments, including the Fund’s reasonably anticipated trade size; |
■ | the analysis received from a third-party liquidity assessment vendor that is taken into account in the process of determining the liquidity classifications of the Fund’s investments and the results of an evaluation of the services performed by the vendor in support of this process; |
■ | the fact that the Fund invested primarily in highly liquid investments during the Period and, therefore, was not required to establish, and has not established, an HLIM and the procedures for monitoring the status of the Fund as investing primarily in highly liquid investments; |
■ | the fact that the Fund invested no more than 15% of its assets in illiquid investments during the Period and the procedures for monitoring this limit; and |
■ | liquidity events during the Period, including the impact on liquidity caused by extended non-U.S. market closures and the market disruptions resulting from the novel coronavirus outbreak, and the fact that there were no specific liquidity events during the Period that materially affected the Fund’s liquidity risk. |
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31421R833
CUSIP 31421R825
CUSIP 31421R692
Share Class | Ticker | A | QALGX | B | QBLGX | C | QCLGX | Institutional | QILGX |
Donahue
1 | Please see the footnotes to the line graphs below for definitions of, and further information about, the R1000G. |
2 | Please see the footnotes to the line graphs below for definitions of, and further information about, the MLGFA. |
3 | The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. The Russell 3000® Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad market, and is completely reconstituted annually to ensure new and growing equities are reflected.* |
4 | Small-cap stocks may be less liquid and subject to greater price volatility than large-cap stocks. |
5 | The Russell Top 200® Index measures the performance of the largest cap segment of the U.S. equity universe. The Russell Top 200® Index is a subset of the Russell 3000® Index. It includes approximately 200 of the largest securities based on a combination of their market cap and current index membership and represents approximately 68% of the U.S. market. The Russell Top 200® Index is constructed to provide a comprehensive and unbiased barometer for this very large cap segment and is completely reconstituted annually to ensure new and growing equities are reflected.* |
6 | The Russell Midcap® Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap® Index is a subset of the Russell 1000® Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. The Russell Midcap® Index represents approximately 31% of the total market capitalization of the Russell 1000® companies. The Russell Midcap® Index is constructed to provide a comprehensive and unbiased barometer for the mid-cap segment. The Russell Midcap Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true mid-cap opportunity set.* |
7 | The Russell 2000® Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000® Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000® Index is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set.* |
8 | The Russell 3000® Growth Index measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 3000® Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 3000® Growth Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad growth market. The Russell 3000® Growth Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect growth characteristics.* |
9 | The Russell 3000® Value Index measures the performance of the broad value segment of U.S. equity value universe. It includes those Russell 3000® Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 3000® Value Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad value market. The Russell 3000® Value Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect value characteristics.* |
10 | The Russell Top 200® Growth Index measures the performance of the especially large cap segment of the U.S. equity universe represented by stocks in the largest 200 by market cap. It includes Russell Top 200® Index companies with higher growth earning potential as defined by Russell’s leading style methodology.* |
11 | The Russell Top 200® Value Index measures the performance of the especially large cap segment of the U.S. equity universe represented by stocks in the largest 200 by market cap. It includes Russell Top 200® Index companies with value characteristics as defined by Russell’s leading style methodology.* |
* | The index is unmanaged, and it is not possible to invest directly in an index. |
Federated Hermes MDT Large Cap Growth Fund - | Institutional Shares | Class C Shares | NA | R1000G | MLGFA |
F | F | NA | I | I | |
7/31/2010 | 10,000 | 10,000 | 10,000 | 10,000 | |
7/31/2011 | 12,462 | 12,340 | 12,476 | 12,289 | |
7/31/2012 | 12,602 | 12,352 | 13,506 | 12,600 | |
7/31/2013 | 16,196 | 15,714 | 16,429 | 15,532 | |
7/31/2014 | 19,312 | 18,559 | 19,499 | 18,264 | |
7/31/2015 | 21,155 | 20,123 | 22,635 | 20,870 | |
7/31/2016 | 20,437 | 19,239 | 23,619 | 20,785 | |
7/31/2017 | 23,704 | 22,091 | 27,883 | 24,409 | |
7/31/2018 | 30,257 | 27,928 | 34,252 | 29,356 | |
7/31/2019 | 33,763 | 30,850 | 37,959 | 32,038 | |
7/31/2020 | 42,953 | 38,867 | 49,285 | 39,386 |
■ | Total returns shown for Class C Shares include the maximum contingent deferred sales charge of 1.00% as applicable. |
1 Year | 5 Years | 10 Years | |
Class A Shares | 19.94% | 13.64% | 14.75% |
Class B Shares | 20.45% | 13.82% | 14.71% |
Class C Shares | 24.99% | 14.07% | 14.54% |
Institutional Shares | 27.22% | 15.22% | 15.69% |
R1000G | 29.84% | 16.84% | 17.29% |
MLGFA | 23.56% | 13.67% | 15.15% |
1 | Represents a hypothetical investment of $10,000 in the Fund after deducting applicable sales charges: for Class A Shares, the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charges = $9,450); for Class B Shares, the maximum contingent deferred sales charge is 5.50% on any redemption less than one year from the purchase date; for Class C Shares, a 1.00% contingent deferred sales charge would be applied to any redemption less than one year from the purchase date. The Fund’s performance assumes the reinvestment of all dividends and distributions. The R1000G and MLGFA have been adjusted to reflect reinvestment of dividends on securities. |
2 | The R1000G measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000® Index companies with higher price-to-book ratios and higher forecasted growth values. The R1000G is constructed to provide a comprehensive and unbiased barometer for the large-cap growth segment. The R1000G is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect growth characteristics. The R1000G is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. The R1000G is not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund’s performance. |
3 | Morningstar figures represent the average of the total returns reported by all the funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. The Morningstar figures in the Growth of $10,000 line graph are based on historical return information published by Morningstar and reflect the return of the funds comprising the category in the year of publication. Because the funds designated by Morningstar as falling into the category can change over time, the Morningstar figures in the line graph may not match the Morningstar figures in the Average Annual Total Returns table, which reflect the return of the funds that currently comprise the category. |
Sector Composition | Percentage of Total Net Assets |
Information Technology | 44.1% |
Consumer Discretionary | 14.8% |
Health Care | 14.7% |
Communication Services | 10.2% |
Industrials | 5.3% |
Consumer Staples | 3.9% |
Financials | 2.9% |
Real Estate | 2.0% |
Materials | 0.4% |
Securities Lending Collateral2 | 0.3% |
Cash Equivalents3 | 1.8% |
Other Assets and Liabilities—Net4 | (0.4)% |
TOTAL | 100.0% |
1 | Except for Securities Lending Collateral, Cash Equivalents and Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
2 | Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. |
3 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing cash collateral for securities lending. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares | Value | ||
COMMON STOCKS—98.3% | |||
Communication Services—10.2% | |||
14,254 | Activision Blizzard, Inc. | $1,177,808 | |
6,072 | 1 | Alphabet, Inc., Class A | 9,034,832 |
689 | Cable One, Inc. | 1,255,744 | |
983 | 1 | Charter Communications, Inc. | 570,140 |
21,665 | 1 | Facebook, Inc. | 5,495,761 |
70,783 | 1,2 | MSG Networks, Inc. | 674,562 |
4,769 | 1 | Netflix, Inc. | 2,331,469 |
32,666 | 1 | TripAdvisor, Inc. | 660,833 |
TOTAL | 21,201,149 | ||
Consumer Discretionary—14.8% | |||
3,942 | 1 | Amazon.com, Inc. | 12,475,169 |
1,032 | 1 | AutoZone, Inc. | 1,246,057 |
3,337 | Dollar General Corp. | 635,365 | |
10,615 | Domino’s Pizza, Inc. | 4,103,865 | |
28,316 | eBay, Inc. | 1,565,309 | |
8,685 | 1 | Etsy, Inc. | 1,028,130 |
8,228 | Home Depot, Inc. | 2,184,452 | |
17,389 | Lowe’s Cos., Inc. | 2,589,396 | |
5,015 | McDonald’s Corp. | 974,314 | |
1,076 | 1 | O’Reilly Automotive, Inc. | 513,661 |
1,134 | 1 | Tesla, Inc. | 1,622,482 |
2,558 | 1 | Ulta Beauty, Inc. | 493,668 |
49,522 | 1 | Under Armour, Inc., Class A | 520,971 |
3,041 | 1,2 | Wayfair, Inc. | 809,180 |
TOTAL | 30,762,019 | ||
Consumer Staples—3.9% | |||
14,734 | Church and Dwight, Inc. | 1,419,326 | |
8,415 | Clorox Co. | 1,990,232 | |
5,747 | Costco Wholesale Corp. | 1,870,821 | |
14,471 | Energizer Holdings, Inc. | 725,431 | |
19,190 | Flowers Foods, Inc. | 436,572 | |
2,361 | Hershey Foods Corp. | 343,313 | |
9,056 | PepsiCo, Inc. | 1,246,649 | |
TOTAL | 8,032,344 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Financials—2.9% | |||
9,805 | 1 | Arch Capital Group Ltd. | $301,504 |
8,782 | MSCI, Inc., Class A | 3,301,856 | |
2,067 | Marketaxess Holdings, Inc. | 1,068,019 | |
12,291 | The Travelers Cos., Inc. | 1,406,336 | |
TOTAL | 6,077,715 | ||
Health Care—14.7% | |||
7,298 | Abbott Laboratories | 734,471 | |
5,543 | AbbVie, Inc. | 526,086 | |
9,985 | 1 | Alexion Pharmaceuticals, Inc. | 1,023,363 |
14,339 | Amgen, Inc. | 3,508,323 | |
3,100 | Anthem, Inc. | 848,780 | |
3,728 | 1 | Biogen, Inc. | 1,024,044 |
18,259 | Eli Lilly & Co. | 2,744,145 | |
31,638 | 1 | Hologic, Inc. | 2,207,700 |
1,863 | Humana, Inc. | 731,134 | |
2,435 | 1 | IDEXX Laboratories, Inc. | 968,521 |
2,602 | 1 | Jazz Pharmaceuticals PLC | 281,666 |
6,359 | 1 | Livongo Health, Inc. | 809,183 |
1,716 | 1 | Masimo Corp. | 377,726 |
31,217 | Merck & Co., Inc. | 2,504,852 | |
712 | 1 | Mettler-Toledo International, Inc. | 665,720 |
1,838 | 1 | Molina Healthcare, Inc. | 339,479 |
17,701 | 1 | SAGE Therapeutics, Inc. | 806,635 |
2,161 | UnitedHealth Group, Inc. | 654,308 | |
7,777 | 1 | Veeva Systems, Inc. | 2,057,561 |
12,638 | 1 | Vertex Pharmaceuticals, Inc. | 3,437,536 |
10,128 | 1 | Waters Corp. | 2,158,783 |
14,149 | Zoetis, Inc. | 2,146,120 | |
TOTAL | 30,556,136 | ||
Industrials—5.3% | |||
3,037 | Acuity Brands, Inc. | 300,967 | |
12,143 | Flowserve Corp. | 338,425 | |
3,191 | Hubbell, Inc. | 430,689 | |
8,171 | Huntington Ingalls Industries, Inc. | 1,419,385 | |
285,725 | KAR Auction Services, Inc. | 4,323,019 | |
3,526 | Lockheed Martin Corp. | 1,336,248 | |
85,670 | Spirit AeroSystems Holdings, Inc., Class A | 1,676,562 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Industrials—continued | |||
6,117 | Verisk Analytics, Inc. | $1,154,339 | |
TOTAL | 10,979,634 | ||
Information Technology—44.1% | |||
12,188 | 1 | Adobe, Inc. | 5,415,372 |
47,815 | Apple, Inc. | 20,323,288 | |
6,673 | Applied Materials, Inc. | 429,274 | |
3,966 | 1 | Arista Networks, Inc. | 1,030,248 |
4,310 | 1 | Autodesk, Inc. | 1,019,013 |
10,436 | Booz Allen Hamilton Holding Corp. | 853,247 | |
6,173 | Broadcom, Inc. | 1,955,298 | |
51,813 | 1 | Cadence Design Systems, Inc. | 5,660,570 |
4,108 | Cognizant Technology Solutions Corp. | 280,659 | |
3,694 | 1 | Coupa Software, Inc. | 1,132,026 |
8,399 | 1 | Crowdstrike Holdings, Inc. | 950,767 |
21,792 | 1 | DocuSign, Inc. | 4,725,159 |
22,915 | 1 | Dynatrace Holdings LLC | 958,535 |
1,706 | 1 | FleetCor Technologies, Inc. | 441,121 |
8,307 | 1 | Fortinet, Inc. | 1,148,858 |
5,902 | 1 | GoDaddy, Inc. | 414,793 |
11,960 | 1 | Inphi Corp. | 1,562,694 |
5,879 | Intuit, Inc. | 1,801,149 | |
9,118 | 1 | Keysight Technologies, Inc. | 910,797 |
12,700 | Mastercard, Inc. | 3,918,331 | |
74,611 | Microsoft Corp. | 15,296,001 | |
9,314 | NVIDIA Corp. | 3,954,631 | |
10,237 | 1 | Okta, Inc. | 2,262,172 |
4,932 | Oracle Corp. | 273,479 | |
21,092 | Paychex, Inc. | 1,516,937 | |
21,087 | 1 | PayPal Holdings, Inc. | 4,134,528 |
34,910 | Qualcomm, Inc. | 3,686,845 | |
3,141 | 1 | ServiceNow, Inc. | 1,379,527 |
4,205 | 1 | Square, Inc. | 546,019 |
5,601 | 1 | Synopsys, Inc. | 1,115,831 |
2,133 | Universal Display Corp. | 372,102 | |
6,607 | 1 | Verisign, Inc. | 1,398,570 |
3,257 | 1 | Zoom Video Communications, Inc. | 826,985 |
TOTAL | 91,694,826 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Materials—0.4% | |||
1,474 | Sherwin-Williams Co. | $955,034 | |
Real Estate—2.0% | |||
3,683 | American Tower Corp. | 962,699 | |
6,400 | Coresite Realty Corp. | 825,920 | |
7,956 | SBA Communications Corp. | 2,478,612 | |
TOTAL | 4,267,231 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $140,640,251) | 204,526,088 | ||
INVESTMENT COMPANIES—2.1% | |||
640,284 | Federated Hermes Government Obligations Fund, Premier Shares, 0.10%3 | 640,284 | |
3,804,098 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.21%3 | 3,806,381 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $4,443,782) | 4,446,665 | ||
TOTAL INVESTMENT IN SECURITIES—100.4% (IDENTIFIED COST $145,084,033)4 | 208,972,753 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.4)%5 | (922,720) | ||
TOTAL NET ASSETS—100% | $208,050,033 |
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | Total Affiliated Transactions | |
Balance of Shares Held 7/31/2019 | 145,725 | 2,521,943 | 2,667,668 |
Purchases/Additions | 18,877,699 | 35,692,448 | 54,570,147 |
Sales/Reductions | (18,383,140) | (34,410,293) | (52,793,433) |
Balance of Shares Held 7/31/2020 | 640,284 | 3,804,098 | 4,444,382 |
Value | $640,284 | $3,806,381 | $4,446,665 |
Change in Unrealized Appreciation/Depreciation | N/A | $2,295 | $2,295 |
Net Realized Gain/(Loss) | N/A | $(1,377) | $(1,377) |
Dividend Income | $6,157 | $30,302 | $36,459 |
* | 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 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. |
3 | 7-day net yield. |
4 | The cost of investments for federal tax purposes amounts to $146,041,969. |
5 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $20.81 | $20.66 | $17.46 | $15.18 | $17.64 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.04) | (0.05) | (0.07) | 0.01 | 0.04 |
Net realized and unrealized gain (loss) | 5.37 | 2.01 | 4.67 | 2.36 | (0.70) |
TOTAL FROM INVESTMENT OPERATIONS | 5.33 | 1.96 | 4.60 | 2.37 | (0.66) |
Less Distributions: | |||||
Distributions from net realized gain | (1.11) | (1.81) | (1.40) | (0.09) | (1.80) |
Net Asset Value, End of Period | $25.03 | $20.81 | $20.66 | $17.46 | $15.18 |
Total Return2 | 26.91% | 11.28% | 27.38% | 15.66% | (3.62)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.11% | 1.48% | 1.52% | 1.52% | 1.50% |
Net investment income (loss) | (0.19)% | (0.27)% | (0.38)% | 0.02% | 0.28% |
Expense waiver/reimbursement4 | 0.30% | 0.00%5 | 0.02% | 0.08% | 0.07% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $93,740 | $67,513 | $59,355 | $49,794 | $45,661 |
Portfolio turnover | 220% | 97% | 104% | 104% | 69% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Represents less than 0.01%. |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $18.66 | $18.85 | $16.16 | $14.16 | $16.71 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.18) | (0.18) | (0.20) | (0.11) | (0.07) |
Net realized and unrealized gain (loss) | 4.76 | 1.80 | 4.29 | 2.20 | (0.68) |
TOTAL FROM INVESTMENT OPERATIONS | 4.58 | 1.62 | 4.09 | 2.09 | (0.75) |
Less Distributions: | |||||
Distributions from net realized gain | (1.11) | (1.81) | (1.40) | (0.09) | (1.80) |
Net Asset Value, End of Period | $22.13 | $18.66 | $18.85 | $16.16 | $14.16 |
Total Return2 | 25.95% | 10.51% | 26.38% | 14.81% | (4.41)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.90% | 2.23% | 2.27% | 2.27% | 2.25% |
Net investment income (loss) | (0.96)% | (1.02)% | (1.13)% | (0.71)% | (0.49)% |
Expense waiver/reimbursement4 | 0.27% | 0.00%5 | 0.02% | 0.08% | 0.08% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $9,662 | $12,612 | $14,432 | $13,654 | $14,925 |
Portfolio turnover | 220% | 97% | 104% | 104% | 69% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Represents less than 0.01%. |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $18.10 | $18.35 | $15.76 | $13.81 | $16.34 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.17) | (0.18) | (0.19) | (0.11) | (0.06) |
Net realized and unrealized gain (loss) | 4.61 | 1.74 | 4.18 | 2.15 | (0.67) |
TOTAL FROM INVESTMENT OPERATIONS | 4.44 | 1.56 | 3.99 | 2.04 | (0.73) |
Less Distributions: | |||||
Distributions from net realized gain | (1.11) | (1.81) | (1.40) | (0.09) | (1.80) |
Net Asset Value, End of Period | $21.43 | $18.10 | $18.35 | $15.76 | $13.81 |
Total Return2 | 25.99% | 10.46% | 26.42% | 14.82% | (4.39)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.88% | 2.23% | 2.27% | 2.27% | 2.25% |
Net investment income (loss) | (0.95)% | (1.03)% | (1.13)% | (0.72)% | (0.46)% |
Expense waiver/reimbursement4 | 0.29% | 0.00%5 | 0.02% | 0.08% | 0.07% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $14,536 | $12,445 | $10,685 | $9,672 | $10,052 |
Portfolio turnover | 220% | 97% | 104% | 104% | 69% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Represents less than 0.01%. |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $21.83 | $21.52 | $18.10 | $15.69 | $18.13 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.03 | (0.01) | (0.03) | 0.05 | 0.08 |
Net realized and unrealized gain (loss) | 5.64 | 2.13 | 4.85 | 2.45 | (0.72) |
TOTAL FROM INVESTMENT OPERATIONS | 5.67 | 2.12 | 4.82 | 2.50 | (0.64) |
Less Distributions: | |||||
Distributions from net realized gain | (1.11) | (1.81) | (1.40) | (0.09) | (1.80) |
Net Asset Value, End of Period | $26.39 | $21.83 | $21.52 | $18.10 | $15.69 |
Total Return2 | 27.22% | 11.59% | 27.65% | 15.98% | (3.40)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.81% | 1.22% | 1.27% | 1.27% | 1.25% |
Net investment income (loss) | 0.13% | (0.04)% | (0.14)% | 0.27% | 0.52% |
Expense waiver/reimbursement4 | 0.34% | 0.00%5 | 0.02% | 0.08% | 0.07% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $90,113 | $37,076 | $11,966 | $7,649 | $7,469 |
Portfolio turnover | 220% | 97% | 104% | 104% | 69% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Represents less than 0.01%. |
Assets: | ||
Investment in securities, at value including $574,921 of securities loaned and $4,446,665 of investment in affiliated holdings* (identified cost $145,084,033) | $208,972,753 | |
Income receivable | 55,855 | |
Income receivable from affiliated holdings | 751 | |
Receivable for investments sold | 896,697 | |
Receivable for shares sold | 102,220 | |
TOTAL ASSETS | 210,028,276 | |
Liabilities: | ||
Payable for investments purchased | $1,018,007 | |
Payable for shares redeemed | 117,701 | |
Payable for collateral due to broker for securities lending | 640,284 | |
Payable for investment adviser fee (Note 5) | 2,236 | |
Payable for administrative fee (Note 5) | 436 | |
Payable for transfer agent fees | 36,135 | |
Payable for distribution services fee (Note 5) | 14,733 | |
Payable for other service fees (Notes 2 and 5) | 42,722 | |
Payable for share registration costs | 40,729 | |
Accrued expenses (Note 5) | 65,260 | |
TOTAL LIABILITIES | 1,978,243 | |
Net assets for 8,274,342 shares outstanding | $208,050,033 | |
Net Assets Consist of: | ||
Paid-in capital | $131,709,227 | |
Total distributable earnings (loss) | 76,340,806 | |
TOTAL NET ASSETS | $208,050,033 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
Class A Shares: | ||
Net asset value per share ($93,739,771 ÷ 3,744,763 shares outstanding), no par value, unlimited shares authorized | $25.03 | |
Offering price per share (100/94.50 of $25.03) | $26.49 | |
Redemption proceeds per share | $25.03 | |
Class B Shares: | ||
Net asset value per share ($9,661,827 ÷ 436,610 shares outstanding), no par value, unlimited shares authorized | $22.13 | |
Offering price per share | $22.13 | |
Redemption proceeds per share (94.50/100 of $22.13) | $20.91 | |
Class C Shares: | ||
Net asset value per share ($14,535,585 ÷ 678,247 shares outstanding), no par value, unlimited shares authorized | $21.43 | |
Offering price per share | $21.43 | |
Redemption proceeds per share (99.00/100 of $21.43) | $21.22 | |
Institutional Shares: | ||
Net asset value per share ($90,112,850 ÷ 3,414,722 shares outstanding), no par value, unlimited shares authorized | $26.39 | |
Offering price per share | $26.39 | |
Redemption proceeds per share | $26.39 |
* | See information listed after the Fund’s Portfolio of Investments. |
Investment Income: | |||
Dividends (including $30,302 received from an affiliated holding*) | $1,530,467 | ||
Net income on securities loaned (includes $6,157 received from an affiliated holding* related to cash collateral balances) | 3,211 | ||
TOTAL INCOME | 1,533,678 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $1,236,290 | ||
Administrative fee (Note 5) | 130,558 | ||
Custodian fees | 42,790 | ||
Transfer agent fees | 249,398 | ||
Directors’/Trustees’ fees (Note 5) | 2,186 | ||
Auditing fees | 27,700 | ||
Legal fees | 7,721 | ||
Portfolio accounting fees | 86,805 | ||
Distribution services fee (Note 5) | 174,292 | ||
Other service fees (Notes 2 and 5) | 248,288 | ||
Share registration costs | 68,672 | ||
Printing and postage | 32,957 | ||
Miscellaneous (Note 5) | 28,126 | ||
TOTAL EXPENSES | 2,335,783 | ||
Waiver/reimbursement of investment adviser fee (Note 5) | (517,001) | ||
Net expenses | 1,818,782 | ||
Net investment income (loss) | (285,104) | ||
Realized and Unrealized Gain (Loss) on Investments: | |||
Net realized gain on investments (including net realized loss of $(1,377) on sales of investments in an affiliated holding*) | 12,827,359 | ||
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $2,295 on investments in an affiliated holding*) | 31,352,658 | ||
Net realized and unrealized gain (loss) on investments | 44,180,017 | ||
Change in net assets resulting from operations | $43,894,913 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31 | 2020 | 2019 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income (loss) | $(285,104) | $(426,359) |
Net realized gain | 12,827,359 | 9,852,764 |
Net change in unrealized appreciation/depreciation | 31,352,658 | 3,316,789 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 43,894,913 | 12,743,194 |
Distributions to Shareholders: | ||
Class A Shares | (4,102,840) | (5,477,815) |
Class B Shares | (700,438) | (1,293,241) |
Class C Shares | (770,197) | (969,378) |
Institutional Shares | (3,849,963) | (1,895,731) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (9,423,438) | (9,636,165) |
Share Transactions: | ||
Proceeds from sale of shares | 25,421,100 | 50,787,953 |
Proceeds from shares issued in connection with the tax-free transfer of assets from PNC Multi-Factor Large Cap Growth Fund | 101,740,899 | — |
Net asset value of shares issued to shareholders in payment of distributions declared | 8,888,859 | 9,069,033 |
Cost of shares redeemed | (92,117,585) | (29,755,658) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 43,933,273 | 30,101,328 |
Change in net assets | 78,404,748 | 33,208,357 |
Net Assets: | ||
Beginning of period | 129,645,285 | 96,436,928 |
End of period | $208,050,033 | $129,645,285 |
Shares of the Fund Issued | Acquired Fund’s Net Assets Received | Unrealized Appreciation1 | Net Assets of the Fund Immediately Prior to Combination | Net Assets of the Fund Immediately After Combination |
4,605,196 | $101,740,899 | $9,990,130 | $117,706,237 | $219,447,136 |
1 | Unrealized Appreciation is included in the Net Assets Received amount shown above. |
Net investment income (loss) | $(26,688) |
Net realized and unrealized gain on investments | 47,081,335 |
Net increase in net assets resulting from operations | $47,054,647 |
■ | 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. |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Fund’s Board of Trustees (the “Trustees”). |
■ | 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 asked quotations. |
■ | Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, 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. |
Other Service Fees Incurred | |
Class A Shares | $190,191 |
Class B Shares | 26,901 |
Class C Shares | 31,196 |
TOTAL | $248,288 |
Market Value of Securities Loaned | Collateral Received |
$574,921 | $640,284 |
Year Ended July 31 | 2020 | 2019 | ||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 448,019 | $9,256,462 | 656,472 | $13,105,404 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | 703,729 | 14,926,094 | — | — |
Shares issued to shareholders in payment of distributions declared | 185,136 | 3,734,190 | 287,970 | 4,964,605 |
Shares redeemed | (836,434) | (17,393,596) | (573,201) | (11,287,981) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 500,450 | $10,523,150 | 371,241 | $6,782,028 |
Year Ended July 31 | 2020 | 2019 | ||
Class B Shares: | Shares | Amount | Shares | Amount |
Shares sold | 18,918 | $376,860 | 15,474 | $275,427 |
Shares issued to shareholders in payment of distributions declared | 38,249 | 685,430 | 81,777 | 1,269,989 |
Shares redeemed | (296,608) | (5,312,408) | (186,625) | (3,266,416) |
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS | (239,441) | $(4,250,118) | (89,374) | $(1,721,000) |
Year Ended July 31 | 2020 | 2019 | ||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 137,996 | $2,411,329 | 287,106 | $4,940,359 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | 18,359 | 337,996 | — | — |
Shares issued to shareholders in payment of distributions declared | 43,943 | 762,414 | 64,160 | 966,884 |
Shares redeemed | (209,547) | (3,655,507) | (245,939) | (4,453,354) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (9,249) | $(143,768) | 105,327 | $1,453,889 |
Year Ended July 31 | 2020 | 2019 | ||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 609,210 | $13,376,449 | 1,564,212 | $32,466,763 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | 3,883,108 | 86,476,809 | — | — |
Shares issued to shareholders in payment of distributions declared | 174,603 | 3,706,825 | 103,408 | 1,867,555 |
Shares redeemed | (2,950,847) | (65,756,074) | (524,974) | (10,747,907) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 1,716,074 | $37,804,009 | 1,142,646 | $23,586,411 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 1,967,834 | $43,933,273 | 1,529,840 | $30,101,328 |
Increase (Decrease) | |
Paid-In Capital | Total Distributable Earnings (Loss) |
$22,572 | $(22,572) |
2020 | 2019 | |
Ordinary income1 | $3,443,870 | $5,514,491 |
Long-term capital gains | $5,979,568 | $4,121,674 |
1 | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Undistributed ordinary income2 | $9,003,465 |
Net unrealized appreciation | $62,930,784 |
Undistributed long-term capital gains | $4,406,557 |
2 | For tax purposes, short term capital gains are considered ordinary income in determining distributable earnings. |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Percentage of Average Daily Net Assets of Class | |
Class A Shares | 0.05% |
Class B Shares | 0.75% |
Class C Shares | 0.75% |
Distribution Services Fees Incurred | |
Class B Shares | $80,703 |
Class C Shares | 93,589 |
TOTAL | $174,292 |
Purchases | $378,780,781 |
Sales | $355,478,074 |
September 22, 2020
Beginning Account Value 2/1/2020 | Ending Account Value 7/31/2020 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,174.60 | $5.35 |
Class B Shares | $1,000 | $1,170.30 | $9.39 |
Class C Shares | $1,000 | $1,170.40 | $9.39 |
Institutional Shares | $1,000 | $1,176.00 | $4.00 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,020.00 | $4.97 |
Class B Shares | $1,000 | $1,016.20 | $8.72 |
Class C Shares | $1,000 | $1,016.20 | $8.72 |
Institutional Shares | $1,000 | $1,021.20 | $3.72 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 0.99% |
Class B Shares | 1.74% |
Class C Shares | 1.75% |
Institutional Shares | 0.74% |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: May 2006 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2016 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company; President of some of the Funds in the Federated Hermes Fund Family and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; President and CEO of Passport Research, Ltd.; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Hermes, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. and President, Technology, Federated Services Company. |
* | Reasons for “interested” status: J. Christopher Donahue and John B. Fisher are interested due to their beneficial ownership of shares of Federated Hermes, Inc. and due to positions they hold with Federated Hermes, Inc. and its subsidiaries. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Chairman of the Board of Directors, Director, and Chairman of the Compensation Committee, KLX Energy Services Holdings, Inc. (oilfield services); former Director of KLX Corp. (aerospace). Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm) and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Director, Member of the Audit Committee, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green was appointed by the Supreme Court of Pennsylvania to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); Director, Catholic Charities, Pittsburgh; and Director CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; and Director and Chair, North Catholic High School, Inc. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant and Author. Other Directorships Held: None. Qualifications: Mr. Mansfield has served as a Marine Corps officer and in several banking, business management, educational roles and directorship positions throughout his long career. He remains active as a Management Consultant and Author. |
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity and Director, The Golisano Children’s Museum of Naples, Florida. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CNX Resources Corporation (formerly known as CONSOL Energy Inc.); and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp. and Edgewood Services, Inc.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: June 2006 | Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc. |
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: June 2012 | Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
■ | the liquidity risk framework used to assess, manage, and periodically review each Fund’s liquidity risk and the results of this assessment, including a review of the Funds’ access to other available funding sources such as the Funds’ interfund lending facility, redemptions in-kind and committed lines of credit and confirmation that the Fund did not have to access any of these alternative funding sources during the Period; |
■ | the periodic classifications of the Fund’s investments into one of four liquidity categories and the methodologies and inputs used to classify the investments, including the Fund’s reasonably anticipated trade size; |
■ | the analysis received from a third-party liquidity assessment vendor that is taken into account in the process of determining the liquidity classifications of the Fund’s investments and the results of an evaluation of the services performed by the vendor in support of this process; |
■ | the fact that the Fund invested primarily in highly liquid investments during the Period and, therefore, was not required to establish, and has not established, an HLIM and the procedures for monitoring the status of the Fund as investing primarily in highly liquid investments; |
■ | the fact that the Fund invested no more than 15% of its assets in illiquid investments during the Period and the procedures for monitoring this limit; and |
■ | liquidity events during the Period, including the impact on liquidity caused by extended non-U.S. market closures and the market disruptions resulting from the novel coronavirus outbreak, and the fact that there were no specific liquidity events during the Period that materially affected the Fund’s liquidity risk. |
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31421R684
CUSIP 31421R809
CUSIP 31421R882
Share Class | Ticker | A | QASCX | C | QCSCX | Institutional | QISCX | R6 | QLSCX |
Donahue
1 | Please see the footnotes to the line graphs below for definitions of, and further information about, the R2000. |
2 | Please see the footnotes to the line graphs below for definitions of, and further information about, the MSBFA. |
3 | The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. The Russell 3000® Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad market, and is completely reconstituted annually to ensure new and growing equities are reflected.* |
4 | Small-cap stocks may be less liquid and subject to greater price volatility than large-cap stocks. |
5 | The Russell Top 200® Index measures the performance of the largest cap segment of the U.S. equity universe. The Russell Top 200® Index is a subset of the Russell 3000® Index. It includes approximately 200 of the largest securities based on a combination of their market cap and current index membership and represents approximately 68% of the U.S. market. The Russell Top 200® Index is constructed to provide a comprehensive and unbiased barometer for this very large cap segment and is completely reconstituted annually to ensure new and growing equities are reflected.* |
6 | The Russell Midcap® Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap® Index is a subset of the Russell 1000® Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. The Russell Midcap® Index represents approximately 31% of the total market capitalization of the Russell 1000® companies. The Russell Midcap® Index is constructed to provide a comprehensive and unbiased barometer for the mid-cap segment. The Russell Midcap Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true mid-cap opportunity set.* |
7 | The Russell 2000® Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000® Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000® Index is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set.* |
8 | The Russell 3000® Growth Index measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 3000® Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 3000® Growth Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad growth market. The Russell 3000® Growth Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect growth characteristics.* |
9 | The Russell 3000® Value Index measures the performance of the broad value segment of U.S. equity value universe. It includes those Russell 3000® Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 3000® Value Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad value market. The Russell 3000® Value Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect value characteristics.* |
10 | The Russell Top 200® Growth Index measures the performance of the especially large cap segment of the U.S. equity universe represented by stocks in the largest 200 by market cap. It includes Russell Top 200® Index companies with higher growth earning potential as defined by Russell’s leading style methodology.* |
11 | The Russell Top 200® Value Index measures the performance of the especially large cap segment of the U.S. equity universe represented by stocks in the largest 200 by market cap. It includes Russell Top 200® Index companies with value characteristics as defined by Russell’s leading style methodology.* |
* | The index is unmanaged, and it is not possible to invest directly in an index. |
Federated Hermes MDT Small Cap Core Fund - | Institutional Shares | Class C Shares | R2000 | MSBFA |
F | F | I | I | |
7/31/2010 | 10,000 | 10,000 | 10,000 | 10,000 |
7/31/2011 | 13,106 | 12,981 | 12,392 | 12,394 |
7/31/2012 | 12,674 | 12,418 | 12,416 | 12,234 |
7/31/2013 | 18,270 | 17,734 | 16,732 | 16,347 |
7/31/2014 | 20,157 | 19,368 | 18,164 | 17,962 |
7/31/2015 | 22,269 | 21,190 | 20,349 | 19,348 |
7/31/2016 | 24,104 | 22,699 | 20,349 | 19,461 |
7/31/2017 | 30,188 | 28,142 | 24,104 | 22,579 |
7/31/2018 | 35,857 | 33,095 | 28,620 | 26,125 |
7/31/2019 | 33,186 | 30,332 | 27,355 | 24,821 |
7/31/2020 | 30,382 | 27,496 | 26,100 | 22,624 |
■ | Total returns shown for Class C Shares include the maximum contingent deferred sales charge of 1.00%, as applicable. |
1 Year | 5 Years | 10 Years | |
Class A Shares | -13.74% | 4.94% | 10.84% |
Class C Shares | -10.26% | 5.35% | 10.64% |
Institutional Shares | -8.45% | 6.41% | 11.75% |
Class R6 Shares4 | -8.44% | 6.34% | 10.92% |
R2000 | -4.59% | 5.10% | 10.07% |
MSBFA | -8.80% | 3.57% | 9.05% |
1 | Represents a hypothetical investment of $10,000 in the Fund after deducting applicable sales charges: for Class A Shares, the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450); for Class C Shares, a 1.00% contingent deferred sales charge would be applied on any redemption less than one year from the purchase date. The Fund’s performance assumes the reinvestment of all dividends and distributions. The R2000 and MSBFA have been adjusted to reflect reinvestment of dividends on securities. |
2 | The R2000 measures the performance of the small-cap segment of the U.S. equity universe. The R2000 is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The R2000 is constructed to provide a comprehensive and unbiased small-cap barometer, and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set. The R2000 is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. The R2000 is not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund’s performance. |
3 | Morningstar figures represent the average of the total returns reported by all the funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. The Morningstar figures in the Growth of $10,000 line graph are based on historical return information published by Morningstar and reflect the return of the funds comprising the category in the year of publication. Because the funds designated by Morningstar as falling into the category can change over time, the Morningstar figures in the line graph may not match the Morningstar figures in the Average Annual Total Returns table, which reflect the return of the funds that currently comprise the category. |
4 | The Fund’s R6 Class commenced operations on June 29, 2016. It is anticipated that this class will have the lowest net expenses of all outstanding share classes. For the period prior to the commencement of operations of the R6 class, the R6 class performance information shown is for the Institutional Share class, adjusted to reflect the expenses of the Fund’s R6 class for each period for which the Fund’s R6 class gross expenses would have exceeded the actual expense paid by the Fund’s Institutional Share class. |
Sector Composition | Percentage of Total Net Assets |
Health Care | 19.2% |
Financials | 16.5% |
Information Technology | 14.0% |
Industrials | 13.5% |
Consumer Discretionary | 13.5% |
Real Estate | 7.1% |
Communication Services | 3.7% |
Consumer Staples | 3.5% |
Materials | 3.1% |
Utilities | 2.9% |
Energy | 2.3% |
Securities Lending Collateral2 | 9.1% |
Cash Equivalents3 | 1.4% |
Other Assets and Liabilities—Net4 | (9.8)% |
TOTAL | 100.0% |
1 | Except for Securities Lending Collateral, Cash Equivalents and Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
2 | Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. |
3 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing cash collateral for securities lending. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares | Value | ||
COMMON STOCKS—99.3% | |||
Communication Services—3.7% | |||
101,875 | 1 | AMC Networks, Inc. | $2,353,313 |
24,255 | 1,2 | Bandwidth, Inc. | 3,511,639 |
856,577 | 1 | Cars.com, Inc. | 6,955,405 |
72,313 | Cogent Communications Holdings, Inc. | 6,516,124 | |
210,392 | 1 | Consolidated Communications Holdings, Inc. | 1,535,862 |
814,190 | 2 | Emerald Holding, Inc. | 2,214,597 |
37,005 | 1 | EverQuote, Inc. | 2,014,922 |
78,854 | 1 | Yelp, Inc. | 1,969,773 |
TOTAL | 27,071,635 | ||
Consumer Discretionary—13.5% | |||
29,428 | 1,2 | 1-800-FLOWERS.COM, Inc. | 831,341 |
132,883 | Aaron’s, Inc. | 6,933,835 | |
354,304 | 1 | American Axle & Manufacturing Holdings, Inc. | 2,501,386 |
26,092 | 1,2 | Asbury Automotive Group, Inc. | 2,613,114 |
56,728 | BBX Capital Corporation | 789,654 | |
79,219 | Big Lots, Inc. | 3,116,475 | |
188,218 | 2 | Camping World Holdings, Inc. | 6,892,543 |
59,327 | 1,2 | Chegg, Inc. | 4,803,707 |
312,195 | 1,2 | Cooper-Standard Holding, Inc. | 3,343,608 |
104,589 | 2 | Dillards, Inc., Class A | 2,463,071 |
130,331 | 1,2 | Fossil, Inc. | 431,396 |
9,276 | 1,2 | Francesca’s Holdings Corp. | 51,482 |
240,584 | 1,2 | Funko, Inc. | 1,332,835 |
191,197 | 1 | G-III Apparel Group Ltd. | 1,890,938 |
101,876 | 1,2 | Groupon, Inc. | 1,563,797 |
411,614 | 1 | Houghton Mifflin Harcourt Co. | 1,218,377 |
38,387 | 1 | Installed Building Products, Inc. | 3,036,796 |
9,835 | Jack in the Box, Inc. | 807,552 | |
214,266 | 1 | Laureate Education, Inc. | 2,716,893 |
394,460 | 2 | Macy’s, Inc. | 2,390,428 |
24,181 | 1,2 | Meritage Corp. | 2,398,272 |
462,310 | 1 | Modine Manufacturing Co. | 2,514,966 |
79,393 | Movado Group, Inc. | 765,349 | |
7,149 | 1 | Murphy USA, Inc. | 946,599 |
62,693 | ODP Corp./The | 1,383,635 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Consumer Discretionary—continued | |||
28,848 | Papa John’s International, Inc. | $2,731,040 | |
19,131 | 1 | Perdoceo Education Corp. | 275,486 |
180,615 | Rent-A-Center, Inc. | 5,223,386 | |
17,041 | 1 | Skyline Corp. | 481,067 |
187,565 | Steven Madden Ltd. | 3,972,627 | |
299,051 | 2 | Tupperware Brands Corp. | 4,614,357 |
47,121 | 1 | WW International, Inc. | 1,214,779 |
107,358 | 2 | Wingstop, Inc. | 16,774,687 |
91,973 | 1 | YETI Holdings, Inc. | 4,496,560 |
TOTAL | 97,522,038 | ||
Consumer Staples—3.5% | |||
121,712 | 2 | B&G Foods, Inc., Class A | 3,518,694 |
172,142 | 1 | BJ’s Wholesale Club Holdings, Inc. | 6,894,287 |
110,355 | 1,2 | Celsius Holdings, Inc. | 1,618,908 |
57,731 | 1 | Central Garden & Pet Co., Class A | 2,000,379 |
140,348 | 1 | elf Beauty, Inc. | 2,506,615 |
26,598 | 1 | Freshpet, Inc. | 2,554,738 |
31,917 | Ingles Markets, Inc., Class A | 1,284,659 | |
101,184 | 2 | Inter Parfums, Inc. | 4,137,414 |
29,343 | SpartanNash Co. | 616,937 | |
27,430 | 1,2 | United Natural Foods, Inc. | 544,485 |
TOTAL | 25,677,116 | ||
Energy—2.3% | |||
55,232 | 2 | Arch Resources, Inc. | 1,713,297 |
279,889 | 1,2 | CONSOL Energy, Inc. | 1,645,747 |
105,185 | CVR Energy, Inc. | 2,019,552 | |
50,456 | 2 | DMC Global, Inc. | 1,482,397 |
111,305 | 1 | Gulf Island Fabrication, Inc. | 329,463 |
332,604 | 1,2 | Gulfport Energy Corp. | 335,930 |
362,889 | 1 | Newpark Resources, Inc. | 685,860 |
218,333 | 1 | Oceaneering International, Inc. | 1,227,031 |
493,449 | 1 | Oil States International, Inc. | 2,210,651 |
1,079,141 | Peabody Energy Corp. | 3,366,920 | |
201,818 | SFL Corporation Ltd. | 1,677,108 | |
43,980 | 1,2 | Tidewater, Inc. | 273,556 |
TOTAL | 16,967,512 | ||
Financials—16.5% | |||
35,148 | 1st Source Corp. | 1,164,102 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Financials—continued | |||
25,434 | American Equity Investment Life Holding Co. | $647,295 | |
36,399 | Argo Group International Holdings Ltd. | 1,219,731 | |
32,280 | Artisan Partners Asset Management, Inc. | 1,169,504 | |
44,567 | BancFirst Corp. | 1,941,339 | |
202,302 | Berkshire Hills Bancorp, Inc. | 2,014,928 | |
446,227 | 1 | Blucora, Inc. | 5,261,016 |
100,194 | Brightsphere Investment Group, Inc. | 1,346,607 | |
39,053 | Brookline Bancorp, Inc. | 374,714 | |
53,781 | CNO Financial Group, Inc. | 812,093 | |
95,190 | Donegal Group, Inc., Class A | 1,330,756 | |
45,420 | Eagle Bancorp, Inc. | 1,366,234 | |
41,227 | Employers Holdings, Inc. | 1,340,702 | |
272,495 | 1 | Ezcorp, Inc., Class A | 1,558,671 |
54,486 | Financial Institutions, Inc. | 804,758 | |
465,338 | 2 | First BanCorp | 2,531,439 |
272,091 | First Bancorp, Inc. | 5,621,400 | |
39,672 | First Cash, Inc. | 2,286,694 | |
145,788 | First Foundation, Inc. | 2,240,762 | |
49,068 | 1 | Goosehead Insurance, Inc. | 5,070,196 |
31,706 | 1 | Green Dot Corp. | 1,607,177 |
46,590 | Heartland Financial USA, Inc. | 1,455,472 | |
25,053 | HomeStreet, Inc. | 662,401 | |
110,084 | 2 | Horace Mann Educators Corp. | 4,136,957 |
38,484 | Independent Bank Corp.- Michigan | 537,429 | |
707,766 | Investors Bancorp, Inc. | 5,747,060 | |
47,334 | 2 | Kinsale Capital Group, Inc. | 9,225,397 |
215,531 | Meridian Bancorp, Inc. | 2,458,131 | |
364,356 | 1 | NMI Holdings, Inc. | 5,654,805 |
10,297 | 1 | Nicolet Bankshares, Inc. | 576,838 |
240,971 | Northwest Bancshares, Inc. | 2,373,564 | |
99,532 | Pacific Premier Bancorp, Inc. | 2,091,167 | |
29,016 | 1,2 | Palomar Holdings, Inc. | 2,650,321 |
152,400 | Peapack-Gladstone Financial Corp. | 2,481,072 | |
71,155 | 2 | Pennymac Financial Services, Inc. | 3,433,940 |
63,543 | Premier Financial Corp. | 1,123,440 | |
305,538 | ProAssurance Corp. | 4,491,409 | |
146,879 | QCR Holdings, Inc. | 4,388,745 | |
52,850 | Radian Group, Inc. | 788,522 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Financials—continued | |||
257,500 | 2 | Selective Insurance Group, Inc. | $13,992,550 |
69,635 | State Auto Financial Corp. | 1,080,039 | |
41,900 | TriCo Bancshares | 1,173,200 | |
21,310 | UMB Financial Corp. | 1,061,238 | |
135,296 | Waterstone Financial, Inc. | 2,067,323 | |
134,084 | Western New England Bancorp, Inc. | 675,783 | |
171,039 | 2 | WisdomTree Investments, Inc. | 615,740 |
32,102 | 1,2 | World Acceptance Corp. | 2,385,179 |
TOTAL | 119,037,840 | ||
Health Care—19.2% | |||
121,929 | 1 | ANI Pharmaceuticals, Inc. | 3,610,318 |
14,082 | 1 | Acceleron Pharma, Inc. | 1,396,512 |
627,148 | 1,2 | Acorda Therapeutics, Inc. | 394,351 |
66,205 | 1,3 | Adeptus Health, Inc., Class A | 0 |
40,232 | 1 | Adverum Biotechnologies, Inc. | 674,691 |
187,426 | 1 | Akebia Therapeutics, Inc. | 2,093,548 |
36,566 | 1 | Allogene Therapeutics, Inc. | 1,340,875 |
85,046 | 1 | Amphastar Pharmaceuticals, Inc. | 1,702,621 |
253,622 | 1 | AnaptysBio, Inc. | 4,555,051 |
175,013 | 1 | AngioDynamics, Inc. | 1,445,607 |
75,854 | 1,2 | Anika Therapeutics, Inc. | 2,761,086 |
74,730 | 1 | Arcus Biosciences, Inc. | 1,470,686 |
545,846 | 1 | Assertio Holdings, Inc. | 491,589 |
54,073 | 1 | AxoGen, Inc. | 614,810 |
29,908 | 1 | Axonics Modulation Technologies, Inc. | 1,266,903 |
49,268 | 1 | Biohaven Pharmaceutical Holding Co. Ltd. | 3,155,123 |
41,161 | 1 | Bioxcel Therapeutics, Inc. | 1,867,063 |
54,647 | 2 | CONMED Corp. | 4,510,563 |
239,793 | 1,2 | Catalyst Pharmaceutical Partners, Inc. | 1,031,110 |
30,591 | 1 | ChemoCentryx, Inc. | 1,612,452 |
253,239 | 1,2 | Community Health Systems, Inc. | 1,261,130 |
166,048 | 1 | Cue Biopharma, Inc. | 3,139,968 |
111,381 | 1 | Cutera, Inc. | 1,584,952 |
16,986 | 1,2 | Cytokinetics, Inc. | 367,237 |
80,582 | 1,2 | Denali Therapeutics, Inc. | 1,887,230 |
44,343 | 1 | Dicerna Pharmaceuticals, Inc. | 953,375 |
12,455 | 1 | Enanta Pharmaceuticals, Inc. | 571,062 |
93,520 | 1 | Fate Therapeutics, Inc. | 2,924,370 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Health Care—continued | |||
77,719 | 1 | G1 Therapeutics, Inc. | $1,140,138 |
129,377 | 1 | GlycoMimetics, Inc. | 509,745 |
39,030 | 1 | Gossamer Bio, Inc. | 465,238 |
24,445 | 1 | Haemonetics Corp. | 2,142,849 |
191,406 | 1 | Halozyme Therapeutics, Inc. | 5,204,329 |
91,390 | 1 | Inogen, Inc. | 2,805,673 |
106,916 | 1 | Inovalon Holdings, Inc. | 2,515,733 |
16,494 | 1 | Inspire Medical Systems, Inc. | 1,638,844 |
38,927 | 1,2 | Intellia Therapeutics, Inc. | 693,290 |
38,036 | 1 | Intra-Cellular Therapies, Inc. | 754,064 |
169,375 | 1,2 | Ironwood Pharmaceuticals, Inc. | 1,553,169 |
133,667 | 1 | Kala Pharmaceuticals, Inc. | 1,169,586 |
135,414 | 1,2 | Kiniksa Pharmaceuticals Ltd. | 2,643,281 |
90,347 | 1,2 | Lannett Co., Inc. | 537,565 |
19,502 | LeMaitre Vascular, Inc. | 571,994 | |
628,152 | 1,2 | Lexicon Pharmaceuticals, Inc. | 1,218,615 |
23,938 | 1,2 | Livongo Health, Inc. | 3,046,111 |
49,232 | Luminex Corp. | 1,792,045 | |
59,597 | 1,2 | MEDNAX, Inc. | 1,190,748 |
226,349 | 1,2 | Mallinckrodt PLC | 504,758 |
61,087 | 1 | Medpace Holdings, Inc. | 7,290,733 |
126,978 | 1 | Mersana Therapeutics, Inc. | 2,524,323 |
42,858 | 1 | Molecular Templates, Inc., Class THL | 470,152 |
81,849 | 1 | Momenta Pharmaceuticals, Inc. | 2,413,727 |
608,966 | 1 | Myriad Genetics, Inc. | 7,350,220 |
31,800 | 1 | Novavax, Inc. | 4,550,580 |
17,468 | 1 | Omnicell, Inc. | 1,227,826 |
49,927 | 1,2 | Pacira BioSciences, Inc. | 2,626,659 |
22,379 | 1 | Prestige Consumer Healthcare, Inc. | 832,275 |
91,828 | 1 | Prevail Therapeutics, Inc. | 1,374,665 |
151,214 | 1,2 | Puma Biotechnology, Inc. | 1,559,016 |
90,701 | 1 | Recro Pharma, Inc. | 370,967 |
27,670 | 1 | Retrophin, Inc. | 550,080 |
15,572 | 1 | Rocket Pharmaceuticals, Inc. | 366,409 |
80,581 | 1 | Scholar Rock Holding Corp. | 909,760 |
21,753 | 1,2 | Schrodinger, Inc. | 1,574,482 |
241,027 | 1 | Select Medical Holdings Corp. | 4,589,154 |
31,817 | 1 | Shockwave Medical, Inc. | 1,569,214 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Health Care—continued | |||
24,178 | 1 | Supernus Pharmaceuticals, Inc. | $538,323 |
24,373 | 1 | Syneos Health, Inc. | 1,520,631 |
172,572 | 1,2 | Tg Therapeutics, Inc. | 3,378,960 |
18,387 | 1 | Turning Point Therapeutics, Inc. | 1,089,062 |
17,669 | 1 | Twist Bioscience Corp. | 990,171 |
28,414 | 1 | Ultragenyx Pharmaceutical, Inc. | 2,220,838 |
66,896 | 1 | Vanda Pharmaceuticals, Inc. | 674,312 |
122,006 | 1,2 | Voyager Therapeutics, Inc. | 1,350,606 |
38,589 | 1 | Xencor, Inc. | 1,161,143 |
35,611 | 1 | Y-mAbs Therapeutics, Inc. | 1,251,014 |
38,567 | 1 | Zogenix, Inc. | 917,509 |
28,995 | 1,2 | Zynex, Inc. | 554,384 |
TOTAL | 138,579,253 | ||
Industrials—13.5% | |||
225,173 | AAR Corp. | 3,877,479 | |
124,356 | Advanced Drainage System, Inc. | 6,093,444 | |
60,054 | 1 | Aerojet Rocketdyne Holdings, Inc. | 2,477,227 |
68,682 | Albany International Corp., Class A | 3,302,231 | |
277,324 | Apogee Enterprises, Inc. | 5,987,425 | |
20,219 | ArcBest Corp. | 614,455 | |
14,528 | Arcosa, Inc. | 613,372 | |
331,577 | 1 | Astronics Corp. | 2,884,720 |
118,737 | 1,2 | Atlas Air Worldwide Holdings, Inc. | 6,183,823 |
47,163 | Barnes Group, Inc. | 1,738,900 | |
72,033 | 1 | Builders Firstsource, Inc. | 1,706,462 |
255,877 | 1 | CECO Environmental Corp. | 1,714,376 |
284,514 | Costamare, Inc. | 1,294,539 | |
164,541 | 1 | Echo Global Logistics, Inc. | 4,124,220 |
53,709 | Exponent, Inc. | 4,514,779 | |
293,561 | 2 | Fluor Corp. | 2,991,387 |
341,049 | 1 | Foundation Building Materials, Inc. | 4,682,603 |
94,660 | 1 | Franklin Covey Co. | 1,712,399 |
138,567 | 1 | GMS, Inc. | 3,246,625 |
346,355 | 2 | Granite Construction, Inc. | 5,874,181 |
69,230 | 1 | Great Lakes Dredge & Dock Corp. | 578,763 |
41,957 | Heidrick & Struggles International, Inc. | 848,790 | |
33,816 | Helios Technologies, Inc. | 1,279,259 | |
83,785 | Hurco Co., Inc. | 2,324,196 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Industrials—continued | |||
271,687 | 1 | MRC Global, Inc. | $1,616,538 |
114,392 | 1,2 | Mastec, Inc. | 4,550,514 |
246,857 | 1 | Mistras Group, Inc. | 871,405 |
299,723 | 1 | Now, Inc. | 2,361,817 |
18,210 | Rexnord Corp. | 527,544 | |
28,753 | 1 | Siteone Landscape Supply, Inc. | 3,681,247 |
150,360 | 1 | Standard Plus Corp. | 2,389,220 |
103,808 | Steelcase, Inc., Class A | 1,113,860 | |
251,670 | 1 | Team, Inc. | 994,096 |
6,832 | Tennant Co. | 455,148 | |
46,015 | The Shyft Group, Inc. | 868,763 | |
175,241 | 1 | Titan Machinery, Inc. | 1,903,993 |
19,617 | 1,2 | Trex Co., Inc. | 2,733,237 |
172,194 | Triumph Group, Inc. | 1,167,475 | |
5,661 | Unifirst Corp. | 1,055,663 | |
39,465 | 1 | Veritiv Corp. | 604,209 |
TOTAL | 97,560,384 | ||
Information Technology—14.0% | |||
79,092 | 1 | Amkor Technology, Inc. | 1,075,256 |
78,182 | 1,2 | Avaya Holdings Corp. | 989,784 |
28,963 | Benchmark Electronics, Inc. | 589,687 | |
95,173 | Blackbaud, Inc. | 5,952,119 | |
137,718 | 1 | Box, Inc. | 2,472,038 |
60,258 | 1 | Calix, Inc. | 1,235,892 |
20,273 | 1 | Commvault Systems, Inc. | 893,634 |
108,606 | Comtech Telecommunications Corp. | 1,783,311 | |
2,639,412 | 1 | Conduent, Inc. | 5,041,277 |
23,983 | 1 | Cornerstone OnDemand, Inc. | 851,636 |
82,990 | 1 | Domo, Inc. | 2,670,618 |
11,140 | 1 | Envestnet, Inc. | 904,568 |
36,917 | Evertec, Inc. | 1,146,273 | |
21,121 | 1 | Five9, Inc. | 2,551,839 |
82,152 | 1 | FormFactor, Inc. | 2,369,264 |
146,238 | 1,2 | GTT Communications, Inc. | 921,299 |
127,518 | 1 | Inphi Corp. | 16,661,502 |
21,508 | 1,2 | Intelligent Systems Corp. | 652,123 |
16,305 | 1 | j2 Global, Inc. | 924,820 |
199,330 | 1,2 | MA-COM Technology Solutions Holdings, Inc. | 8,423,686 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Information Technology—continued | |||
97,675 | MTS Systems Corp. | $1,811,871 | |
89,685 | ManTech International Corp., Class A | 6,240,282 | |
15,067 | 1 | MaxLinear, Inc. | 381,948 |
119,896 | 1,2 | Model N, Inc. | 4,611,200 |
77,924 | 1 | NeoPhotonics Corp. | 709,888 |
13,244 | 1 | Netgear, Inc. | 407,253 |
20,124 | 1 | OSI Systems, Inc. | 1,427,999 |
33,331 | Perspecta, Inc. | 713,283 | |
264,383 | 2 | Plantronics, Inc. | 5,285,016 |
10,053 | 1 | Qualys, Inc. | 1,241,344 |
60,593 | 1 | SPS Commerce, Inc. | 4,554,776 |
111,632 | 1 | SVMK, Inc. | 2,676,935 |
71,518 | 1 | SailPoint Technologies Holding | 2,252,817 |
13,821 | Science Applications International Corp. | 1,105,404 | |
133,238 | 1,2 | Secureworks Corp. | 1,593,527 |
21,216 | 1 | Sitime Corp. | 1,127,630 |
51,536 | 1 | Sprout Social, Inc. | 1,488,875 |
211,152 | 1,2 | Synchronoss Technologies, Inc. | 696,802 |
32,780 | TTEC Holdings, Inc. | 1,555,739 | |
63,766 | 1 | Tenable Holdings, Inc. | 2,163,580 |
6,655 | 1,2 | Varonis Systems, Inc. | 721,069 |
TOTAL | 100,877,864 | ||
Materials—3.1% | |||
264,258 | 1,2 | Allegheny Technologies, Inc. | 2,296,402 |
83,456 | Boise Cascade Co. | 3,888,215 | |
26,780 | Carpenter Technology Corp. | 598,801 | |
93,255 | Commercial Metals Corp. | 1,928,513 | |
26,194 | Domtar, Corp. | 549,812 | |
63,400 | Fuller (H.B.) Co. | 2,874,556 | |
27,762 | Haynes International, Inc. | 509,710 | |
18,186 | 1 | Ingevity Corp. | 1,063,517 |
61,688 | 1 | Koppers Holdings, Inc. | 1,552,687 |
155,575 | Myers Industries, Inc. | 2,342,959 | |
76,006 | O-I Glass, Inc. | 793,503 | |
178,898 | SunCoke Energy, Inc. | 570,685 | |
74,498 | Trinseo SA | 1,616,607 | |
122,955 | Verso Corp. | 1,501,281 | |
TOTAL | 22,087,248 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Real Estate—7.1% | |||
58,810 | Alexander and Baldwin, Inc. | $695,134 | |
161,131 | 2 | CIM Commercial Trust Corp. | 1,643,536 |
38,011 | CareTrust REIT, Inc. | 684,958 | |
347,864 | Chatham Lodging Trust | 1,812,371 | |
254,036 | CoreCivic, Inc. | 2,263,461 | |
61,954 | 2 | CorEnergy Infrastructure Trust, Inc. | 542,717 |
351,268 | Easterly Government Properties, Inc. | 8,588,503 | |
489,041 | Independence Realty Trust | 5,623,972 | |
50,305 | LTC Properties, Inc. | 1,868,831 | |
142,352 | 2 | QTS Realty Trust, Inc. | 10,242,226 |
195,928 | RMR Group, Inc./The | 5,634,889 | |
120,106 | 1,2 | Redfin Corp. | 4,994,008 |
296,791 | Sabra Health Care REIT, Inc. | 4,374,699 | |
218,754 | Sunstone Hotel Investors, Inc. | 1,636,280 | |
69,093 | Whitestone Project | 456,014 | |
TOTAL | 51,061,599 | ||
Utilities—2.9% | |||
44,423 | Allete, Inc. | 2,634,284 | |
6,223 | 2 | Chesapeake Utilities Corp. | 525,781 |
171,167 | Clearway Energy, Inc. | 3,921,436 | |
311,036 | Portland General Electric Co. | 13,726,019 | |
TOTAL | 20,807,520 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $663,991,472) | 717,250,009 | ||
INVESTMENT COMPANIES—10.5% | |||
31,624,077 | Federated Hermes Government Obligations Fund, Premier Shares, 0.10%4 | 31,624,077 | |
44,494,142 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.21%4 | 44,520,839 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $76,142,738) | 76,144,916 | ||
TOTAL INVESTMENT IN SECURITIES—109.8% (IDENTIFIED COST $740,134,210)5 | 793,394,925 | ||
OTHER ASSETS AND LIABILITIES - NET—(9.8)%6 | (70,656,549) | ||
TOTAL NET ASSETS—100% | $722,738,376 |
Affiliated | Balance of Shares Held 7/31/2019 | Purchases/ Additions* | Sales/ Reductions* |
Amphastar Pharmaceuticals, Inc. | — | 85,046 | — |
AnaptysBio, Inc. | — | 253,622 | — |
Ultragenyx Pharmaceutical, Inc. | — | 31,765 | (3,351) |
Wingstop, Inc. | 33,334 | 189,374 | (115,350) |
Affiliated Issuers no longer in the portfolio at period end | — | 69,933 | (69,933) |
TOTAL OF AFFILIATED TRANSACTIONS | 33,334 | 629,740 | (188,634) |
Balance of Shares Held 7/31/2020 | Value | Change in Unrealized Appreciation/ Depreciation* | Net Realized Gain/(Loss)* | Dividend Income* |
85,046 | $1,702,621 | $(48,459) | $— | $— |
253,622 | $4,555,051 | $379,491 | $— | $— |
28,414 | $2,220,838 | $112,557 | $9,532 | $276 |
107,358 | $16,774,687 | $7,256,504 | $1,063,076 | $44,909 |
— | $— | $— | $711,238 | $— |
474,440 | $25,253,197 | $7,700,093 | $1,783,846 | $45,185 |
* | A portion of the amount shown was recorded prior to the Fund having ownership of at least 5% of the voting shares. |
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares* | Total of Affiliated Transactions | |
Balance of Shares Held 7/31/2019 | 37,415,748 | 84,083,002 | 121,498,750 |
Purchases/Additions | 298,134,754 | 603,036,372 | 901,171,126 |
Sales/Reductions | (303,926,425) | (642,625,232) | (946,551,657) |
Balance of Shares Held 7/31/2020 | 31,624,077 | 44,494,142 | 76,118,219 |
Value | $31,624,077 | $44,520,839 | $76,144,916 |
Change in Unrealized Appreciation/Depreciation | N/A | $(72) | $(72) |
Net Realized Gain/(Loss) | N/A | $8,150 | $8,150 |
Dividend Income | 475,313 | 970,853 | 1,446,166 |
* | 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 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. |
3 | Market quotations and price evaluations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established by and under the general supervision of the Fund’s Board of Trustees (the "Trustees"). |
4 | 7-day net yield. |
5 | The cost of investments for federal tax purposes amounts to $770,602,726. |
6 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | $705,138,863 | $— | $0 | $705,138,863 |
International | 12,111,146 | — | — | 12,111,146 |
Investment Companies | 76,144,916 | — | — | 76,144,916 |
TOTAL SECURITIES | $793,394,925 | $— | $0 | $793,394,925 |
REIT | —Real Estate Investment Trust |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $18.87 | $21.19 | $18.69 | $15.08 | $15.66 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.04 | 0.01 | (0.01) | (0.02) | 0.03 |
Net realized and unrealized gain (loss) | (1.68) | (1.70) | 3.38 | 3.78 | 1.02 |
TOTAL FROM INVESTMENT OPERATIONS | (1.64) | (1.69) | 3.37 | 3.76 | 1.05 |
Less Distributions: | |||||
Distributions from net investment income | (0.04) | — | — | — | — |
Distributions from net realized gain | — | (0.63) | (0.87) | (0.15) | (1.63) |
TOTAL DISTRIBUTIONS | (0.04) | (0.63) | (0.87) | (0.15) | (1.63) |
Net Asset Value, End of Period | $17.19 | $18.87 | $21.19 | $18.69 | $15.08 |
Total Return2 | (8.71)% | (7.69)% | 18.49% | 24.97% | 7.90% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.13% | 1.13% | 1.14% | 1.14% | 1.13% |
Net investment income (loss) | 0.24% | 0.07% | (0.06)% | (0.13)% | 0.19% |
Expense waiver/reimbursement4 | 0.31% | 0.22% | 0.37% | 0.55% | 1.10% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $78,347 | $68,546 | $74,396 | $37,031 | $13,035 |
Portfolio turnover | 223% | 121% | 88% | 91% | 189% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $16.58 | $18.84 | $16.83 | $13.70 | $14.48 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.08) | (0.12) | (0.14) | (0.14) | (0.07) |
Net realized and unrealized gain (loss) | (1.47) | (1.51) | 3.02 | 3.42 | 0.92 |
TOTAL FROM INVESTMENT OPERATIONS | (1.55) | (1.63) | 2.88 | 3.28 | 0.85 |
Less Distributions: | |||||
Distributions from net investment income | — | — | — | — | — |
Distributions from net realized gain | — | (0.63) | (0.87) | (0.15) | (1.63) |
TOTAL DISTRIBUTIONS | — | (0.63) | (0.87) | (0.15) | (1.63) |
Net Asset Value, End of Period | $15.03 | $16.58 | $18.84 | $16.83 | $13.70 |
Total Return2 | (9.35)% | (8.35)% | 17.60% | 23.98% | 7.12% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.88% | 1.88% | 1.89% | 1.89% | 1.88% |
Net investment income (loss) | (0.51)% | (0.69)% | (0.81)% | (0.89)% | (0.56)% |
Expense waiver/reimbursement4 | 0.23% | 0.28% | 0.38% | 0.57% | 1.11% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $22,720 | $28,411 | $30,072 | $15,223 | $3,422 |
Portfolio turnover | 223% | 121% | 88% | 91% | 189% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $19.59 | $21.94 | $19.30 | $15.54 | $16.04 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.09 | 0.06 | 0.03 | 0.02 | 0.06 |
Net realized and unrealized gain (loss) | (1.74) | (1.76) | 3.50 | 3.90 | 1.07 |
TOTAL FROM INVESTMENT OPERATIONS | (1.65) | (1.70) | 3.53 | 3.92 | 1.13 |
Less Distributions: | |||||
Distributions from net investment income | (0.07) | (0.02) | (0.02) | — | — |
Distributions from net realized gain | — | (0.63) | (0.87) | (0.16) | (1.63) |
TOTAL DISTRIBUTIONS | (0.07) | (0.65) | (0.89) | (0.16) | (1.63) |
Net Asset Value, End of Period | $17.87 | $19.59 | $21.94 | $19.30 | $15.54 |
Total Return2 | (8.45)% | (7.45)% | 18.78% | 25.24% | 8.24% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.88% | 0.88% | 0.89% | 0.89% | 0.88% |
Net investment income | 0.49% | 0.31% | 0.13% | 0.10% | 0.43% |
Expense waiver/reimbursement4 | 0.18% | 0.22% | 0.34% | 0.53% | 1.11% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $574,041 | $842,221 | $708,805 | $179,219 | $24,529 |
Portfolio turnover | 223% | 121% | 88% | 91% | 189% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31, | Period Ended 7/31/20161 | ||||
2020 | 2019 | 2018 | 2017 | ||
Net Asset Value, Beginning of Period | $19.59 | $21.94 | $19.30 | $15.54 | $13.88 |
Income From Investment Operations: | |||||
Net investment income (loss)2 | 0.09 | 0.06 | 0.02 | 0.01 | (0.01) |
Net realized and unrealized gain (loss) | (1.74) | (1.76) | 3.51 | 3.91 | 1.67 |
TOTAL FROM INVESTMENT OPERATIONS | (1.65) | (1.70) | 3.53 | 3.92 | 1.66 |
Less Distributions: | |||||
Distributions from net investment income | (0.07) | (0.02) | (0.02) | — | — |
Distributions from net realized gain | — | (0.63) | (0.87) | (0.16) | — |
TOTAL DISTRIBUTIONS | (0.07) | (0.65) | (0.89) | (0.16) | — |
Net Asset Value, End of Period | $17.87 | $19.59 | $21.94 | $19.30 | $15.54 |
Total Return3 | (8.44)% | (7.45)% | 18.78% | 25.24% | 11.96% |
Ratios to Average Net Assets: | |||||
Net expenses4 | 0.87% | 0.87% | 0.88% | 0.88% | 0.87%5 |
Net investment income (loss) | 0.49% | 0.32% | 0.08% | 0.04% | (0.04)%5 |
Expense waiver/reimbursement6 | 0.08% | 0.12% | 0.26% | 0.41% | 0.97%5 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $47,631 | $33,753 | $13,374 | $1,017 | $07 |
Portfolio turnover | 223% | 121% | 88% | 91% | 189%8 |
1 | Reflects operations for the period from June 29, 2016 (date of initial investment) to July 31, 2016. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | Computed on an annualized basis. |
6 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
7 | Represents less than $1,000. |
8 | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended July 31, 2016. |
Assets: | ||
Investment in securities, at value including $63,130,775 of securities loaned and $76,144,916 of investment in affiliated holdings* (identified cost $740,134,210) | $793,394,925 | |
Income receivable | 185,876 | |
Income receivable from affiliated holdings | 2,186 | |
Receivable for investments sold | 16,725,268 | |
Receivable for shares sold | 684,579 | |
TOTAL ASSETS | 810,992,834 | |
Liabilities: | ||
Payable for investments purchased | $16,199,182 | |
Payable for shares redeemed | 5,738,151 | |
Payable for collateral due to broker for securities lending | 65,944,077 | |
Payable for investment adviser fee (Note 5) | 14,008 | |
Payable for administrative fee (Note 5) | 1,559 | |
Payable for distribution services fee (Note 5) | 14,219 | |
Payable for other service fees (Notes 2 and 5) | 40,198 | |
Accrued expenses (Note 5) | 303,064 | |
TOTAL LIABILITIES | 88,254,458 | |
Net assets for 40,863,428 shares outstanding | $722,738,376 | |
Net Assets Consist of: | ||
Paid-in capital | $785,579,052 | |
Total distributable earnings (loss) | (62,840,676) | |
TOTAL NET ASSETS | $722,738,376 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
Class A Shares: | ||
Net asset value per share ($78,346,521 ÷ 4,556,653 shares outstanding), no par value, unlimited shares authorized | $17.19 | |
Offering price per share (100/94.50 of $17.19) | $18.19 | |
Redemption proceeds per share | $17.19 | |
Class C Shares: | ||
Net asset value per share ($22,719,657 ÷ 1,511,985 shares outstanding), no par value, unlimited shares authorized | $15.03 | |
Offering price per share | $15.03 | |
Redemption proceeds per share (99.00/100 of $15.03) | $14.88 | |
Institutional Shares: | ||
Net asset value per share ($574,040,945 ÷ 32,129,720 shares outstanding), no par value, unlimited shares authorized | $17.87 | |
Offering price per share | $17.87 | |
Redemption proceeds per share | $17.87 | |
Class R6 Shares: | ||
Net asset value per share ($47,631,253 ÷ 2,665,070 shares outstanding), no par value, unlimited shares authorized | $17.87 | |
Offering price per share | $17.87 | |
Redemption proceeds per share | $17.87 |
* | See information listed after the Fund’s Portfolio of Investments. |
Investment Income: | |||
Dividends (including $190,663 received from affiliated companies and holdings* and net of foreign taxes withheld of $38,118) | $10,119,862 | ||
Net income on securities loaned (includes $1,300,688 earned from affiliated company and holdings* related to cash collateral balances) (Note 2) | 1,535,522 | ||
TOTAL INCOME | 11,655,384 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $6,800,894 | ||
Administrative fee (Note 5) | 670,710 | ||
Custodian fees | 100,857 | ||
Transfer agent fees (Note 2) | 1,123,472 | ||
Directors’/Trustees’ fees (Note 5) | 6,441 | ||
Auditing fees | 28,800 | ||
Legal fees | 7,722 | ||
Portfolio accounting fees | 153,698 | ||
Distribution services fee (Note 5) | 194,337 | ||
Other service fees (Notes 2 and 5) | 262,571 | ||
Share registration costs | 92,592 | ||
Printing and postage | 71,709 | ||
Miscellaneous (Note 5) | 37,891 | ||
TOTAL EXPENSES | 9,551,694 | ||
Waiver and Reimbursements: | |||
Waiver/reimbursement of investment adviser fee (Note 5) | $(663,439) | ||
Reimbursement of other operating expenses (Notes 2 and 5) | (921,362) | ||
TOTAL WAIVER AND REIMBURSEMENTS | (1,584,801) | ||
Net expenses | 7,966,893 | ||
Net investment income | 3,688,491 |
Realized and Unrealized Gain (Loss) on Investments: | |||
Net realized loss on investments (including net realized gain of $1,791,996 on sales of investments in affiliated companies and holding*) | $(93,227,069) | ||
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $7,700,021 on investments in affiliated companies and holding*) | (25,083,286) | ||
Net realized and unrealized gain (loss) on investments | (118,310,355) | ||
Change in net assets resulting from operations | $(114,621,864) |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31 | 2020 | 2019 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $3,688,491 | $2,379,523 |
Net realized loss | (93,227,069) | (6,860,147) |
Net change in unrealized appreciation/depreciation | (25,083,286) | (64,875,679) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | (114,621,864) | (69,356,303) |
Distributions to Shareholders: | ||
Class A Shares | (241,559) | (2,316,631) |
Class C Shares | — | (1,156,337) |
Institutional Shares | (3,139,873) | (24,309,562) |
Class R6 Shares | (217,595) | (927,672) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (3,599,027) | (28,710,202) |
Share Transactions: | ||
Proceeds from sale of shares | 332,219,364 | 662,037,597 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Funds | 244,171,911 | — |
Net asset value of shares issued to shareholders in payment of distributions declared | 3,176,105 | 26,997,492 |
Cost of shares redeemed | (711,539,671) | (444,684,151) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (131,972,291) | 244,350,938 |
Change in net assets | (250,193,182) | 146,284,433 |
Net Assets: | ||
Beginning of period | 972,931,558 | 826,647,125 |
End of period | $722,738,376 | $972,931,558 |
PNC Fund | Share Class Exchanged | Fund Shares Received |
Multi-Factor Small Cap Core Fund | A | 1.172 Class A Shares |
C | 1.333 Class C Shares | |
I | 1.137 Institutional Shares | |
R6 | 1.135 Class R6 Shares | |
Multi-Factor Small Cap Value Fund | A | 1.042 Class A Shares |
C | 1.039 Class C Shares | |
I | 1.102 Institutional Shares | |
Small Cap Fund | A | 0.494 Class A Shares |
C | 0.391 Class C Shares | |
I | 0.529 Institutional Shares |
Shares of the Fund Issued | Acquired Funds’ Net Assets Received | Unrealized Appreciation1 | Net Assets of the Fund Immediately Prior to Combination | Net Assets of the Fund Immediately After Combination |
12,798,626 | $244,171,911 | $71,610,835 | $881,235,561 | $1,125,407,472 |
1 | Unrealized Appreciation is included in the Net Assets Received amount shown above. |
Net investment income | $4,044,354 |
Net realized and unrealized gain (loss) on investments | (123,022,814) |
Net decrease in net assets resulting from operations | $(118,978,460) |
■ | 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. |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | 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 asked quotations. |
■ | Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, 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. |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $207,072 | $(185,559) |
Class C Shares | 47,763 | (40,016) |
Institutional Shares | 861,494 | (695,787) |
Class R6 Shares | 7,143 | — |
TOTAL | $1,123,472 | $(921,362) |
Other Service Fees Incurred | |
Class A Shares | $198,954 |
Class C Shares | 63,617 |
TOTAL | $262,571 |
Market Value of Securities Loaned | Collateral Received |
$63,130,775 | $65,944,077 |
Year Ended July 31 | 2020 | 2019 | ||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,048,052 | $17,685,551 | 1,917,717 | $36,807,080 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Funds | 3,213,962 | 59,940,394 | — | — |
Shares issued to shareholders in payment of distributions declared | 11,235 | 216,722 | 130,070 | 2,238,511 |
Shares redeemed | (3,349,156) | (57,418,270) | (1,926,776) | (36,450,543) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 924,093 | $20,424,397 | 121,011 | $2,595,048 |
Year Ended July 31 | 2020 | 2019 | ||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 212,811 | $3,235,458 | 816,518 | $14,448,516 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Funds | 474,115 | 7,751,772 | — | — |
Shares issued to shareholders in payment of distributions declared | — | — | 69,154 | 1,050,441 |
Shares redeemed | (888,543) | (13,324,178) | (768,042) | (12,785,661) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (201,617) | $(2,336,948) | 117,630 | $2,713,296 |
Year Ended July 31 | 2020 | 2019 | ||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 16,340,991 | $281,920,986 | 29,605,182 | $578,572,031 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Funds | 8,269,174 | 160,173,907 | — | — |
Shares issued to shareholders in payment of distributions declared | 140,423 | 2,809,864 | 1,278,403 | 22,792,305 |
Shares redeemed | (35,614,006) | (613,866,572) | (20,198,281) | (386,462,699) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (10,863,418) | $(168,961,815) | 10,685,304 | $214,901,637 |
Year Ended July 31 | 2020 | 2019 | ||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,624,311 | $29,377,369 | 1,525,579 | $32,209,970 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Funds | 841,375 | 16,305,838 | — | — |
Shares issued to shareholders in payment of distributions declared | 7,469 | 149,519 | 51,362 | 916,235 |
Shares redeemed | (1,530,700) | (26,930,651) | (463,823) | (8,985,248) |
NET CHANGE RESULTING FROM CLASS R6 SHARES TRANSACTIONS | 942,455 | $18,902,075 | 1,113,118 | $24,140,957 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (9,198,487) | $(131,972,291) | 12,037,063 | $244,350,938 |
Increase (Decrease) | |
Paid-In Capital | Total Distributable Earnings (Loss) |
$2,226,630 | $(2,226,630) |
2020 | 2019 | |
Ordinary income1 | $3,599,027 | $21,486,437 |
Long-term capital gains | $— | $7,223,765 |
1 | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Undistributed ordinary income | $1,497,602 |
Unrealized appreciation | $22,792,199 |
Capital loss carryforwards | $(87,130,477) |
Short-Term | Long-Term | Total |
$71,706,011 | $15,424,466 | $87,130,477 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Percentage of Average Daily Net Assets of Class | |
Class A Shares | 0.05% |
Class C Shares | 0.75% |
Distribution Services Fees Incurred | |
Class C Shares | $194,337 |
Purchases | $1,873,885,080 |
Sales | $2,065,946,544 |
Beginning Account Value 2/1/2020 | Ending Account Value 7/31/2020 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $920.20 | $5.39 |
Class C Shares | $1,000 | $917.60 | $8.96 |
Institutional Shares | $1,000 | $922.10 | $4.21 |
Class R6 Shares | $1,000 | $925.20 | $4.16 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,019.20 | $5.67 |
Class C Shares | $1,000 | $1,015.50 | $9.42 |
Institutional Shares | $1,000 | $1,020.50 | $4.42 |
Class R6 Shares | $1,000 | $1,020.50 | $4.37 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.13% |
Class C Shares | 1.88% |
Institutional Shares | 0.88% |
Class R6 Shares | 0.87% |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: May 2006 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2016 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company; President of some of the Funds in the Federated Hermes Fund Family and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; President and CEO of Passport Research, Ltd.; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Hermes, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. and President, Technology, Federated Services Company. |
* | Reasons for “interested” status: J. Christopher Donahue and John B. Fisher are interested due to their beneficial ownership of shares of Federated Hermes, Inc. and due to positions they hold with Federated Hermes, Inc. and its subsidiaries. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Chairman of the Board of Directors, Director, and Chairman of the Compensation Committee, KLX Energy Services Holdings, Inc. (oilfield services); former Director of KLX Corp. (aerospace). Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm) and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Director, Member of the Audit Committee, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green was appointed by the Supreme Court of Pennsylvania to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); Director, Catholic Charities, Pittsburgh; and Director CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; and Director and Chair, North Catholic High School, Inc. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant and Author. Other Directorships Held: None. Qualifications: Mr. Mansfield has served as a Marine Corps officer and in several banking, business management, educational roles and directorship positions throughout his long career. He remains active as a Management Consultant and Author. |
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity and Director, The Golisano Children’s Museum of Naples, Florida. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CNX Resources Corporation (formerly known as CONSOL Energy Inc.); and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp. and Edgewood Services, Inc.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: June 2006 | Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: June 2012 | Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments. |
■ | the liquidity risk framework used to assess, manage, and periodically review each Fund’s liquidity risk and the results of this assessment, including a review of the Funds’ access to other available funding sources such as the Funds’ interfund lending facility, redemptions in-kind and committed lines of credit and confirmation that the Fund did not have to access any of these alternative funding sources during the Period; |
■ | the periodic classifications of the Fund’s investments into one of four liquidity categories and the methodologies and inputs used to classify the investments, including the Fund’s reasonably anticipated trade size; |
■ | the analysis received from a third-party liquidity assessment vendor that is taken into account in the process of determining the liquidity classifications of the Fund’s investments and the results of an evaluation of the services performed by the vendor in support of this process; |
■ | the fact that the Fund invested primarily in highly liquid investments during the Period and, therefore, was not required to establish, and has not established, an HLIM and the procedures for monitoring the status of the Fund as investing primarily in highly liquid investments; |
■ | the fact that the Fund invested no more than 15% of its assets in illiquid investments during the Period and the procedures for monitoring this limit; and |
■ | liquidity events during the Period, including the impact on liquidity caused by extended non-U.S. market closures and the market disruptions resulting from the novel coronavirus outbreak, and the fact that there were no specific liquidity events during the Period that materially affected the Fund’s liquidity risk. |
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31421R791
CUSIP 31421R783
CUSIP 31421R627
Share Class | Ticker | A | QASGX | C | QCSGX | |
Institutional | QISGX | R6 | QLSGX |
Donahue
1 | Please see the footnotes to the line graphs below for definitions of, and further information about, the R2000G. |
2 | Please see the footnotes to the line graphs below for definitions of, and further information about, the MSGFA. |
3 | The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. The Russell 3000® Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad market, and is completely reconstituted annually to ensure new and growing equities are reflected.* |
4 | Small-cap stocks may be less liquid and subject to greater price volatility than large-cap stocks. |
5 | The Russell Top 200® Index measures the performance of the largest cap segment of the U.S. equity universe. The Russell Top 200® Index is a subset of the Russell 3000® Index. It includes approximately 200 of the largest securities based on a combination of their market cap and current index membership and represents approximately 68% of the U.S. market. The Russell Top 200® Index is constructed to provide a comprehensive and unbiased barometer for this very large cap segment and is completely reconstituted annually to ensure new and growing equities are reflected.* |
6 | The Russell Midcap® Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap® Index is a subset of the Russell 1000® Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. The Russell Midcap® Index represents approximately 31% of the total market capitalization of the Russell 1000® companies. The Russell Midcap® Index is constructed to provide a comprehensive and unbiased barometer for the mid-cap segment. The Russell Midcap Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true mid-cap opportunity set.* |
7 | The Russell 2000® Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000® Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index |
membership. The Russell 2000® Index is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set.* | |
8 | The Russell 3000® Growth Index measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 3000® Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 3000® Growth Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad growth market. The Russell 3000® Growth Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect growth characteristics.* |
9 | The Russell 3000® Value Index measures the performance of the broad value segment of U.S. equity value universe. It includes those Russell 3000® Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 3000® Value Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad value market. The Russell 3000® Value Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect value characteristics.* |
10 | The Russell Top 200® Growth Index measures the performance of the especially large cap segment of the U.S. equity universe represented by stocks in the largest 200 by market cap. It includes Russell Top 200® Index companies with higher growth earning potential as defined by Russell’s leading style methodology.* |
11 | The Russell Top 200® Value Index measures the performance of the especially large cap segment of the U.S. equity universe represented by stocks in the largest 200 by market cap. It includes Russell Top 200® Index companies with value characteristics as defined by Russell’s leading style methodology.* |
* | The index is unmanaged, and it is not possible to invest directly in an index. |
Federated Hermes MDT Small Cap Growth Fund - | Institutional Shares | Class C Shares | NA | R2000G | MSGFA |
F | F | NA | I | I | |
7/31/2010 | 10,000 | 10,000 | 10,000 | 10,000 | |
7/31/2011 | 13,910 | 13,760 | 12,932 | 12,942 | |
7/31/2012 | 13,718 | 13,440 | 12,866 | 12,651 | |
7/31/2013 | 18,576 | 18,019 | 17,419 | 16,660 | |
7/31/2014 | 20,102 | 19,300 | 18,975 | 18,030 | |
7/31/2015 | 23,740 | 22,574 | 22,783 | 20,996 | |
7/31/2016 | 24,347 | 22,914 | 21,575 | 19,893 | |
7/31/2017 | 30,744 | 28,660 | 25,407 | 23,406 | |
7/31/2018 | 38,075 | 35,120 | 31,228 | 28,758 | |
7/31/2019 | 37,070 | 33,862 | 30,849 | 29,702 | |
7/31/2020 | 38,120 | 34,479 | 32,699 | 32,262 |
■ | Total returns shown for Class C Shares include the maximum contingent deferred sales charge of 1.00% as applicable. |
1 Year | 5 Years | 10 Years | |
Class A Shares | -3.12% | 8.43% | 13.39% |
Class C Shares | 0.82% | 8.84% | 13.18% |
Institutional Shares | 2.79% | 9.93% | 14.32% |
Class R6 Shares4 | 2.87% | 9.91% | 14.18% |
R2000G | 6.00% | 7.49% | 12.58% |
MSGFA | 8.82% | 9.42% | 12.92% |
1 | Represents a hypothetical investment of $10,000 in the Fund after deducting applicable sales charges: for Class A Shares, the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charges = $9,450); for Class C Shares, a 1.00% contingent deferred sales charge would be applied to any redemption less than one year from the purchase date. The Fund’s performance assumes the reinvestment of all dividends and distributions. The R2000G and MSGFA have been adjusted to reflect reinvestment of dividends on securities. |
2 | The R2000G measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000® Index companies with higher price-to-value ratios and higher forecasted growth values. The R2000G is constructed to provide a comprehensive and unbiased barometer for the small-cap growth segment. The R2000G is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set and that the represented companies continue to reflect growth characteristics. The R2000G is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. The R2000G is not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund’s performance. |
3 | Morningstar figures represent the average of the total returns reported by all the funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. The Morningstar figures in the Growth of $10,000 line graph are based on historical return information published by Morningstar and reflect the return of the funds comprising the category in the year of publication. Because the funds designated by Morningstar as falling into the category can change over time, the Morningstar figures in the line graph may not match the Morningstar figures in the Average Annual Total Returns table, which reflect the return of the funds that currently comprise the category. |
4 | The Fund’s Class R6 Shares commenced operations on June 29, 2016. It is anticipated that this class will have the lowest net expenses of all outstanding share classes. For the period prior to the commencement of operations of Class R6 Shares, the performance information shown is for the Fund’s Institutional Shares adjusted to reflect expenses of the Class R6 Shares for each year for which the gross expenses of Class R6 Shares would have exceeded the actual expenses paid by Institutional Shares. |
Sector Composition | Percentage of Total Net Assets |
Health Care | 31.1% |
Information Technology | 21.4% |
Consumer Discretionary | 12.6% |
Industrials | 12.0% |
Financials | 5.5% |
Consumer Staples | 4.3% |
Real Estate | 4.1% |
Communication Services | 3.9% |
Materials | 2.3% |
Utilities | 0.7% |
Energy | 0.6% |
Securities Lending Collateral2 | 11.6% |
Cash Equivalents3 | 1.5% |
Other Assets and Liabilities—Net4 | (11.6)% |
TOTAL | 100.0% |
1 | Except for Cash Equivalents and Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
2 | Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. |
3 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing cash collateral for securities lending. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares | Value | ||
COMMON STOCKS—98.5% | |||
Communication Services—3.9% | |||
43,585 | 1,2 | Bandwidth, Inc. | $6,310,236 |
21,666 | 2 | CarGurus, Inc. | 625,931 |
721,246 | 2 | Cars.com, Inc. | 5,856,518 |
108,709 | 1 | Cogent Communications Holdings, Inc. | 9,795,768 |
63,316 | 2 | EverQuote, Inc. | 3,447,556 |
114,447 | 2 | Yelp, Inc. | 2,858,886 |
TOTAL | 28,894,895 | ||
Consumer Discretionary—12.6% | |||
181,949 | Aaron’s, Inc. | 9,494,099 | |
34,040 | 2 | Asbury Automotive Group, Inc. | 3,409,106 |
26,488 | Big Lots, Inc. | 1,042,038 | |
145,920 | 1 | Camping World Holdings, Inc. | 5,343,590 |
4,954 | 2 | Cavco Industries, Inc. | 992,435 |
84,788 | 1,2 | Chegg, Inc. | 6,865,284 |
7,362 | 2 | Deckers Outdoor Corp. | 1,540,498 |
107,064 | 1 | Falcon Minerals Corp | 268,731 |
372,934 | 1,2 | Funko, Inc. | 2,066,054 |
66,806 | 1,2 | Groupon, Inc. | 1,025,472 |
2,896 | 2 | Helen of Troy Ltd. | 545,172 |
47,906 | 2 | Installed Building Products, Inc. | 3,789,844 |
12,082 | Jack in the Box, Inc. | 992,053 | |
27,464 | 1,2 | Lovesac Co./The | 872,806 |
41,624 | 2 | Murphy USA, Inc. | 5,511,434 |
8,103 | 2 | Overstock.com, Inc. | 612,506 |
56,763 | Papa Johns International, Inc. | 5,373,753 | |
68,030 | 2 | Perdoceo Education Corp. | 979,632 |
323,223 | 2 | PlayAGS, Inc. | 1,092,494 |
114,814 | Rent-A-Center, Inc. | 3,320,421 | |
81,016 | 2 | Skyline Corp. | 2,287,082 |
67,307 | 2 | Sportsman’s Warehouse Holdings, Inc. | 1,082,969 |
419,554 | Steven Madden Ltd. | 8,886,154 | |
3,951 | 2 | TopBuild Corp. | 521,216 |
48,897 | 2 | WW International, Inc. | 1,260,565 |
125,478 | 1 | Wingstop, Inc. | 19,605,937 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Consumer Discretionary—continued | |||
114,919 | 2 | YETI Holdings, Inc. | $5,618,390 |
TOTAL | 94,399,735 | ||
Consumer Staples—4.3% | |||
138,838 | 1 | B&G Foods, Inc., Class A | 4,013,807 |
275,349 | 2 | BJ’s Wholesale Club Holdings, Inc. | 11,027,727 |
183,344 | 1,2 | Celsius Holdings, Inc. | 2,689,656 |
127,252 | 2 | elf Beauty, Inc. | 2,272,721 |
82,819 | 2 | Freshpet, Inc. | 7,954,765 |
108,586 | Inter Parfums, Inc. | 4,440,082 | |
TOTAL | 32,398,758 | ||
Energy—0.6% | |||
183,481 | 1,2 | CONSOL Energy, Inc. | 1,078,868 |
22,459 | 1 | DMC Global, Inc. | 659,846 |
464,014 | 2 | Propetro Holding Corp. | 2,491,755 |
TOTAL | 4,230,469 | ||
Financials—5.5% | |||
30,404 | Artisan Partners Asset Management, Inc. | 1,101,537 | |
560,096 | 2 | Blucora, Inc. | 6,603,532 |
24,541 | CNB Financial Corp. | 400,755 | |
46,529 | First Cash, Inc. | 2,681,932 | |
47,843 | 2 | Goosehead Insurance, Inc. | 4,943,617 |
33,350 | 1 | Guaranty Bancshares, Inc. | 903,785 |
24,939 | 1 | Kinsale Capital Group, Inc. | 4,860,611 |
206,303 | 2 | NMI Holdings, Inc. | 3,201,823 |
41,197 | 1,2 | Palomar Holdings, Inc. | 3,762,934 |
184,957 | 1 | Selective Insurance Group, Inc. | 10,050,563 |
51,679 | State Auto Financial Corp. | 801,541 | |
22,565 | 1,2 | World Acceptance Corp. | 1,676,579 |
TOTAL | 40,989,209 | ||
Health Care—31.1% | |||
166,015 | 1,2 | ANI Pharmaceuticals, Inc. | 4,915,704 |
10,906 | 2 | Acceleron Pharma, Inc. | 1,081,548 |
142,399 | 1,2 | Acer Therapeutics, Inc. | 531,148 |
51,904 | 2,3 | Adeptus Health, Inc. | 0 |
63,544 | 2 | Adverum Biotechnologies, Inc. | 1,065,633 |
100,332 | 2 | Akebia Therapeutics, Inc. | 1,120,708 |
26,278 | 2 | Alector, Inc. | 411,776 |
56,070 | 2 | Allogene Therapeutics, Inc. | 2,056,087 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Health Care—continued | |||
135,728 | 2 | Amicus Therapeutics, Inc. | $1,961,270 |
76,991 | 2 | Amneal Pharmaceuticals, Inc | 333,371 |
324,722 | 2 | AnaptysBio, Inc. | 5,832,007 |
28,179 | 1,2 | Applied Therapeutics, Inc. | 727,018 |
18,621 | 1,2 | Arcturus Therapeutics Holdings, Inc. | 972,575 |
47,381 | 2 | Arcus Biosciences, Inc. | 932,458 |
149,494 | 2 | AxoGen, Inc. | 1,699,747 |
65,009 | 1,2 | Axonics Modulation Technologies, Inc. | 2,753,781 |
9,973 | 1,2 | Axsome Therapeutics, Inc. | 711,374 |
93,698 | 2 | Biohaven Pharmaceutical Holding Co. Ltd. | 6,000,420 |
36,437 | 1,2 | BioSig Technologies, Inc. | 328,662 |
43,267 | 2 | Bioxcel Therapeutics, Inc. | 1,962,591 |
34,593 | CONMED Corp. | 2,855,306 | |
373,362 | 2 | Catalyst Pharmaceutical Partners Inc. | 1,605,457 |
46,003 | 2 | ChemoCentryx, Inc. | 2,424,818 |
18,587 | 1,2 | Co-Diagnostics, Inc. | 446,088 |
26,895 | 1,2 | Collegium Pharmaceutical, Inc. | 424,403 |
24,101 | 1,2 | Corcept Therapeutics, Inc. | 360,310 |
281,779 | 2 | Cross Country Healthcare, Inc. | 1,827,337 |
147,652 | 2 | Cue Biopharma, Inc. | 2,792,099 |
100,851 | 2 | Cutera, Inc. | 1,435,110 |
160,463 | 1,2 | Denali Therapeutics, Inc. | 3,758,044 |
56,416 | 2 | Dicerna Pharmaceuticals, Inc. | 1,212,944 |
29,629 | 2 | Emergent BioSolutions, Inc. | 3,295,930 |
60,214 | 1,2 | Enanta Pharmaceuticals, Inc. | 2,760,812 |
21,723 | Ensign Group, Inc. | 999,041 | |
98,254 | 1,2 | Fate Therapeutics, Inc. | 3,072,403 |
185,359 | 2 | G1 Therapeutics, Inc. | 2,719,217 |
48,284 | 2 | Globus Medical, Inc. | 2,326,323 |
369,402 | 2 | GlycoMimetics, Inc. | 1,455,444 |
42,660 | 2 | Gossamer Bio, Inc. | 508,507 |
26,605 | 2 | Haemonetics Corp. | 2,332,194 |
210,816 | 2 | Halozyme Therapeutics, Inc. | 5,732,087 |
90,277 | 2 | Immunomedics, Inc. | 3,812,398 |
89,047 | 1,2 | Inogen, Inc. | 2,733,743 |
126,648 | 1,2 | Inovalon Holdings, Inc. | 2,980,027 |
42,565 | 1,2 | Inovio Pharmaceuticals, Inc. | 827,464 |
39,378 | 2 | Inspire Medical Systems, Inc. | 3,912,598 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Health Care—continued | |||
75,467 | 1,2 | Intellia Therapeutics, Inc. | $1,344,067 |
18,888 | 2 | Intra-Cellular Therapies, Inc. | 374,455 |
18,990 | 2 | Invitae Corp. | 554,508 |
381,414 | 1,2 | Ironwood Pharmaceuticals, Inc. | 3,497,566 |
194,896 | 2 | Kadmon Holdings, Inc. | 713,319 |
139,761 | 2 | Kala Pharmaceuticals, Inc. | 1,222,909 |
238,147 | 1,2 | Kiniksa Pharmaceuticals Ltd. | 4,648,629 |
19,279 | 2 | Kura Oncology, Inc. | 316,947 |
96,760 | 1 | LeMaitre Vascular, Inc. | 2,837,971 |
1,066,432 | 1,2 | Lexicon Pharmaceuticals, Inc. | 2,068,878 |
29,193 | 1,2 | Livongo Health, Inc. | 3,714,809 |
76,080 | 1,2 | Medpace Holdings, Inc. | 9,080,148 |
145,572 | 2 | Mersana Therapeutics, Inc. | 2,893,971 |
14,804 | 2 | Mirati Therapeutics, Inc. | 1,795,873 |
31,086 | 2 | Molecular Templates, Inc., Class THL | 341,013 |
132,996 | 1,2 | Momenta Pharmaceuticals, Inc. | 3,922,052 |
8,402 | 2 | Morphic Holding, Inc. | 189,129 |
17,025 | 2 | Myokardia, Inc. | 1,534,463 |
568,099 | 2 | Myriad Genetics, Inc. | 6,856,955 |
19,463 | 2 | Natera, Inc. | 934,613 |
42,419 | 2 | NextGen Healthcare, Inc. | 620,166 |
25,013 | 2 | Novavax, Inc. | 3,579,360 |
39,223 | 2 | NuVasive, Inc. | 2,241,202 |
23,641 | 1,2 | Odonate Therapeutics, Inc. | 859,823 |
87,031 | 2 | Omnicell, Inc. | 6,117,409 |
34,780 | 2 | Orthofix Medical, Inc. | 1,068,094 |
36,796 | 1,2 | PTC Therapeutics, Inc. | 1,704,759 |
94,290 | 1,2 | Pacira BioSciences, Inc. | 4,960,597 |
85,268 | 2 | Prevail Therapeutics, Inc. | 1,276,462 |
9,254 | 2 | Principia Biopharma, Inc. | 773,634 |
274,222 | 1,2 | Puma Biotechnology, Inc. | 2,827,229 |
61,673 | 2 | R1 RCM, Inc. | 843,070 |
158,800 | 2 | Recro Pharma, Inc. | 649,492 |
6,876 | 2 | Repligen Corp. | 1,037,657 |
31,755 | 2 | Rocket Pharmaceuticals, Inc. | 747,195 |
350,415 | 2 | Savara, Inc. | 697,326 |
69,730 | 2 | Scholar Rock Holding Corp. | 787,252 |
37,487 | 1,2 | Schrodinger, Inc. | 2,713,309 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Health Care—continued | |||
292,728 | 2 | Select Medical Holdings Corp. | $5,573,541 |
39,763 | 2 | Shockwave Medical, Inc. | 1,961,111 |
24,554 | 1 | Simulations Plus, Inc. | 1,728,602 |
71,471 | 2 | Supernus Pharmaceuticals, Inc. | 1,591,302 |
27,831 | 2 | Syneos Health, Inc. | 1,736,376 |
8,999 | 2 | Tandem Diabetes Care, Inc. | 940,036 |
22,648 | 2 | Teladoc, Inc. | 5,381,844 |
178,843 | 1,2 | Tg Therapeutics, Inc. | 3,501,746 |
28,782 | 2 | Turning Point Therapeutics, Inc. | 1,704,758 |
72,069 | 2 | Twist Bioscience Corp. | 4,038,747 |
35,121 | 1 | U.S. Physical Therapy, Inc. | 2,917,150 |
57,381 | 1,2 | Ultragenyx Pharmaceutical, Inc. | 4,484,899 |
259,652 | 2 | VBI Vaccines, Inc. | 1,056,784 |
207,043 | 2 | Vanda Pharmaceuticals, Inc. | 2,086,993 |
32,848 | 2 | Vapotherm, Inc. | 1,715,980 |
39,172 | 1,2 | Vaxart, Inc. | 367,825 |
46,860 | 1,2 | Viela Bio, Inc. | 1,715,545 |
314,317 | 1,2 | Viewray, Inc. | 870,658 |
121,528 | 2 | Voyager Therapeutics, Inc. | 1,345,315 |
186,449 | 2 | Xencor, Inc. | 5,610,250 |
59,139 | 2 | Y-mAbs Therapeutics, Inc. | 2,077,553 |
79,097 | 2 | Zogenix, Inc. | 1,881,718 |
78,833 | 1,2 | Zynex, Inc. | 1,507,287 |
TOTAL | 232,150,313 | ||
Industrials—12.0% | |||
14,765 | AZZ, Inc. | 466,279 | |
114,844 | Advanced Drainage System, Inc. | 5,627,356 | |
127,434 | 1,2 | Aerojet Rocketdyne Holdings, Inc. | 5,256,652 |
20,649 | 2 | Aerovironment, Inc. | 1,580,681 |
51,903 | Albany International Corp., Class A | 2,495,496 | |
303,385 | Apogee Enterprises, Inc. | 6,550,082 | |
294,749 | 2 | Astronics Corp. | 2,564,316 |
57,785 | 1,2 | Atlas Air Worldwide Holdings, Inc. | 3,009,443 |
72,588 | Barnes Group, Inc. | 2,676,320 | |
155,671 | 2 | Builders Firstsource, Inc. | 3,687,846 |
163,237 | 2 | Echo Global Logistics, Inc. | 4,091,535 |
56,487 | Enerpac Tool Group Corp. | 1,067,604 | |
71,233 | 1 | Exponent, Inc. | 5,987,846 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Industrials—continued | |||
23,670 | Federal Signal Corp. | $731,640 | |
155,615 | 2 | Foundation Building Materials, Inc. | 2,136,594 |
104,346 | 2 | Franklin Covey Co. | 1,887,619 |
162,711 | 2 | GMS, Inc. | 3,812,319 |
371,360 | 1 | Granite Construction, Inc. | 6,298,266 |
132,267 | Heidrick & Struggles International, Inc. | 2,675,761 | |
79,406 | Helios Technologies, Inc. | 3,003,929 | |
510,043 | 2 | MRC Global, Inc. | 3,034,756 |
45,143 | 1,2 | Mastec, Inc. | 1,795,789 |
253,186 | 2 | Mistras Group, Inc. | 893,747 |
76,770 | 2 | PGT, Inc. | 1,310,464 |
63,758 | 1,2 | Plug Power, Inc. | 491,574 |
127,691 | REV Group, Inc. | 829,991 | |
18,846 | Rexnord Corp. | 545,969 | |
23,830 | 2 | SPX Corp. | 1,000,860 |
54,653 | 2 | Siteone Landscape Supply, Inc. | 6,997,224 |
11,065 | Tennant Co. | 737,150 | |
197,470 | 2 | Thermon Group Holdings, Inc. | 2,675,718 |
16,461 | 2 | Trex Co., Inc. | 2,293,511 |
125,781 | Triumph Group, Inc. | 852,795 | |
164,326 | 2 | Welbilt, Inc. | 999,102 |
TOTAL | 90,066,234 | ||
Information Technology—21.4% | |||
44,606 | 2 | Amkor Technology, Inc. | 606,419 |
19,431 | Badger Meter, Inc. | 1,216,381 | |
172,141 | Blackbaud, Inc. | 10,765,698 | |
198,446 | 2 | Box, Inc. | 3,562,106 |
53,548 | 2 | Calix, Inc. | 1,098,269 |
150,254 | 2 | ChannelAdvisor Corp. | 3,060,674 |
166,412 | 1,2 | Coda Octopus Group, Inc. | 960,197 |
122,276 | 2 | Commvault Systems, Inc. | 5,389,926 |
56,680 | 1,2 | Cornerstone OnDemand, Inc. | 2,012,707 |
97,728 | 1,2 | Domo, Inc. | 3,144,887 |
36,747 | 2 | Envestnet, Inc. | 2,983,856 |
209,900 | Evertec, Inc. | 6,517,395 | |
58,808 | 1,2 | Five9, Inc. | 7,105,183 |
115,414 | 2 | FormFactor, Inc. | 3,328,540 |
112,371 | 1,2 | GTT Communications, Inc. | 707,937 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Information Technology—continued | |||
129,785 | 2 | Inphi Corp. | $16,957,708 |
86,557 | 1,2 | Intelligent Systems Corp. | 2,624,408 |
59,159 | 1,2 | j2 Global, Inc. | 3,355,498 |
167,791 | 2 | MA-COM Technology Solutions Holdings, Inc. | 7,090,848 |
92,323 | MTS Systems Corp. | 1,712,592 | |
29,759 | 1 | Maximus, Inc. | 2,208,415 |
57,353 | 2 | MaxLinear, Inc. | 1,453,899 |
211,819 | 1,2 | Model N, Inc. | 8,146,559 |
58,559 | 1,2 | OSI Systems, Inc. | 4,155,347 |
66,487 | 2 | Perficient, Inc. | 2,606,955 |
82,175 | Perspecta, Inc. | 1,758,545 | |
14,159 | 2 | Ping Identity Holding Corp. | 486,503 |
237,511 | 1 | Plantronics, Inc. | 4,747,845 |
94,830 | 2 | Qualys, Inc. | 11,709,608 |
125,320 | 2 | SPS Commerce, Inc. | 9,420,304 |
169,594 | 2 | SVMK Inc. | 4,066,864 |
178,888 | 2 | SailPoint Technologies Holding | 5,634,972 |
168,906 | 1,2 | Secureworks Corp. | 2,020,116 |
55,393 | 2 | Semtech Corp. | 3,087,052 |
38,866 | 2 | Sitime Corp. | 2,065,728 |
23,531 | 2 | Sprout Social, Inc. | 679,811 |
23,098 | 2 | Synaptics, Inc. | 1,848,302 |
80,276 | TTEC Holdings, Inc. | 3,809,899 | |
112,057 | 2 | Tenable Holdings, Inc. | 3,802,094 |
17,627 | 1,2 | Varonis Systems, Inc. | 1,909,885 |
TOTAL | 159,819,932 | ||
Materials—2.3% | |||
110,275 | Boise Cascade Co. | 5,137,712 | |
19,142 | Compass Minerals International, Inc. | 975,093 | |
61,372 | Fuller (H.B.) Co. | 2,782,607 | |
132,089 | 2 | Koppers Holdings, Inc. | 3,324,680 |
241,569 | Myers Industries, Inc. | 3,638,029 | |
86,100 | 2,3 | Rentech, Inc. | 0 |
103,128 | 2 | Ryerson Holding Corp. | 580,611 |
34,854 | Verso Corp. | 425,567 | |
TOTAL | 16,864,299 | ||
Real Estate—4.1% | |||
134,988 | Easterly Government Properties, Inc. | 3,300,457 |
Shares | Value | ||
COMMON STOCKS—continued | |||
Real Estate—continued | |||
75,276 | 1 | LTC Properties, Inc. | $2,796,503 |
166,306 | 1 | QTS Realty Trust, Inc. | 11,965,717 |
248,369 | RMR Group, Inc./The | 7,143,092 | |
124,281 | 1,2 | Redfin Corp. | 5,167,604 |
TOTAL | 30,373,373 | ||
Utilities—0.7% | |||
12,552 | American States Water Co. | 964,998 | |
38,099 | 1 | California Water Service Group | 1,785,700 |
16,759 | Chesapeake Utilities Corp. | 1,415,968 | |
5,944 | Middlesex Water Co. | 380,772 | |
13,540 | ONE Gas, Inc. | 1,024,978 | |
TOTAL | 5,572,416 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $626,853,910) | 735,759,633 | ||
INVESTMENT COMPANIES—13.1% | |||
35,185,159 | Federated Hermes Government Obligations Fund, Premier Shares, 0.10%4 | 35,185,159 | |
62,834,182 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.21%4 | 62,871,883 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $98,057,042) | 98,057,042 | ||
TOTAL INVESTMENT IN SECURITIES-111.6% (IDENTIFIED COST $724,910,952)5 | 833,816,675 | ||
OTHER ASSETS AND LIABILITIES—NET—(11.6)%6 | (86,639,650) | ||
TOTAL NET ASSETS—100% | $747,177,025 |
Balance of Shares Held 7/31/2019 | Purchases/ Additions* | Sales/ Reductions* | |
Consumer Discretionary: | |||
Wingstop, Inc. | 54,313 | 223,310 | (152,145) |
Health Care: | |||
Alector, Inc. | — | 147,830 | (121,552) |
AnaptysBio, Inc. | — | 342,809 | (18,087) |
Arcturus Therapeutics Holdings, Inc. | — | 18,621 | — |
Ultragenyx Pharmaceutical, Inc. | — | 84,671 | (27,290) |
Affiliated issuers no longer in the portfolio at period end | — | 101,939 | (101,939) |
TOTAL OF AFFILIATED TRANSACTIONS | 54,313 | 919,180 | (421,013) |
Balance of Shares Held 7/31/2020 | Value | Change in Unrealized Appreciation/ Depreciation | Net Realized Gain/(Loss)* | Dividend Income* |
125,478 | $19,605,937 | $8,586,180 | $646,004 | $67,409 |
26,278 | $411,776 | $(32,945) | $(626,622) | $— |
324,722 | $5,832,007 | $494,533 | $18,481 | $— |
18,621 | $972,575 | $7,392 | $— | $— |
57,381 | $4,484,899 | $444,139 | $(366,707) | $— |
— | $— | $— | $1,042,769 | $— |
552,480 | $31,307,194 | $9,499,299 | $713,925 | $67,409 |
* | A portion of the amount shown was recorded when the Fund did not have ownership of at least 5% of the voting shares. |
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares* | Total Affiliated Transactions | |
Balance of Shares Held 7/31/2019 | 34,589,446 | 67,411,680 | 102,001,126 |
Purchases/Additions | 275,581,070 | 587,766,486 | 863,347,556 |
Sales/Reductions | (274,985,357) | (592,343,984) | (867,329,341) |
Balance of Shares Held 7/31/2020 | 35,185,159 | 62,834,182 | 98,019,341 |
Value | $35,185,159 | $62,871,883 | $98,057,042 |
Change in Unrealized Appreciation/Depreciation | N/A | $(4,832) | $(4,832) |
Net Realized Gain/(Loss) | N/A | $ 5,305 | $ 5,305 |
Dividend Income | $444,239 | $857,097 | $1,301,336 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions. |
1 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. |
2 | Non-income-producing security. |
3 | Market quotations and price evaluations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established by and under the general supervision of the Fund’s Board of Trustees (the "Trustees"). |
4 | 7-day net yield. |
5 | The cost of investments for federal tax purposes amounts to $739,870,583. |
6 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | $723,508,628 | $— | $0 | $723,508,628 |
International | 12,251,005 | — | — | 12,251,005 |
Investment Companies | 98,057,042 | — | — | 98,057,042 |
TOTAL SECURITIES | $833,816,675 | $— | $0 | $833,816,675 |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $23.30 | $25.67 | $21.89 | $17.66 | $20.49 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.07) | (0.08) | (0.11) | (0.08) | (0.06) |
Net realized and unrealized gain (loss) | 0.66 | (0.84) | 5.09 | 4.63 | 0.32 |
TOTAL FROM INVESTMENT OPERATIONS | 0.59 | (0.92) | 4.98 | 4.55 | 0.26 |
Less Distributions: | |||||
Distributions from net realized gain | — | (1.45) | (1.20) | (0.32) | (3.09) |
Net Asset Value, End of Period | $23.89 | $23.30 | $25.67 | $21.89 | $17.66 |
Total Return2 | 2.53% | (2.83)% | 23.50% | 26.00% | 2.30% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.13% | 1.13% | 1.14% | 1.15% | 1.13% |
Net investment income (loss) | (0.32)% | (0.36)% | (0.48)% | (0.39)% | (0.34)% |
Expense waiver/reimbursement4 | 0.30% | 0.29% | 0.44% | 0.70% | 1.00% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $92,389 | $82,170 | $82,953 | $47,681 | $29,707 |
Portfolio turnover | 227% | 142% | 129% | 118% | 198% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $20.32 | $22.77 | $19.69 | $16.03 | $19.03 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.21) | (0.23) | (0.26) | (0.21) | (0.17) |
Net realized and unrealized gain (loss) | 0.58 | (0.77) | 4.54 | 4.19 | 0.26 |
TOTAL FROM INVESTMENT OPERATIONS | 0.37 | (1.00) | 4.28 | 3.98 | 0.09 |
Less Distributions: | |||||
Distributions from net realized gain | — | (1.45) | (1.20) | (0.32) | (3.09) |
Net Asset Value, End of Period | $20.69 | $20.32 | $22.77 | $19.69 | $16.03 |
Total Return2 | 1.82% | (3.58)% | 22.54% | 25.08% | 1.51% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.88% | 1.88% | 1.89% | 1.90% | 1.88% |
Net investment income (loss) | (1.07)% | (1.12)% | (1.23)% | (1.15)% | (1.09)% |
Expense waiver/reimbursement4 | 0.20% | 0.29% | 0.41% | 0.66% | 1.00% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $17,481 | $22,639 | $18,008 | $10,007 | $3,941 |
Portfolio turnover | 227% | 142% | 129% | 118% | 198% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net Asset Value, Beginning of Period | $24.37 | $26.71 | $22.67 | $18.24 | $21.01 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.02) | (0.02) | (0.06) | (0.03) | (0.02) |
Net realized and unrealized gain (loss) | 0.70 | (0.87) | 5.30 | 4.78 | 0.34 |
TOTAL FROM INVESTMENT OPERATIONS | 0.68 | (0.89) | 5.24 | 4.75 | 0.32 |
Less Distributions: | |||||
Distributions from net realized gain | — | (1.45) | (1.20) | (0.32) | (3.09) |
Net Asset Value, End of Period | $25.05 | $24.37 | $26.71 | $22.67 | $18.24 |
Total Return2 | 2.79% | (2.60)% | 23.85% | 26.27% | 2.56% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.88% | 0.88% | 0.89% | 0.90% | 0.88% |
Net investment income (loss) | (0.07)% | (0.10)% | (0.25)% | (0.15)% | (0.09)% |
Expense waiver/reimbursement4 | 0.19% | 0.25% | 0.41% | 0.63% | 0.99% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $354,204 | $455,597 | $364,248 | $112,742 | $43,337 |
Portfolio turnover | 227% | 142% | 129% | 118% | 198% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31, | Period Ended 7/31/20161 | ||||
2020 | 2019 | 2018 | 2017 | ||
Net Asset Value, Beginning of Period | $24.36 | $26.70 | $22.67 | $18.24 | $16.25 |
Income From Investment Operations: | |||||
Net investment income (loss)2 | (0.02) | (0.02) | (0.06) | (0.01) | (0.07) |
Net realized and unrealized gain (loss) | 0.72 | (0.87) | 5.29 | 4.76 | 2.06 |
TOTAL FROM INVESTMENT OPERATIONS | 0.70 | (0.89) | 5.23 | 4.75 | 1.99 |
Less Distributions: | |||||
Distributions from net realized gain | — | (1.45) | (1.20) | (0.32) | — |
Net Asset Value, End of Period | $25.06 | $24.36 | $26.70 | $22.67 | $18.24 |
Total Return3 | 2.87% | (2.60)% | 23.81% | 26.27% | 12.25% |
Ratios to Average Net Assets: | |||||
Net expenses4 | 0.87% | 0.87% | 0.88% | 0.88% | 0.87%5 |
Net investment income (loss) | (0.07)% | (0.07)% | (0.24)% | (0.04)% | (0.41)%5 |
Expense waiver/reimbursement6 | 0.09% | 0.15% | 0.30% | 0.42% | 0.66%5 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $283,103 | $333,059 | $89,307 | $24,795 | $07 |
Portfolio turnover | 227% | 142% | 129% | 118% | 198%8 |
1 | Reflects operations for the period from June 29, 2016 (date of initial investment) to July 31, 2016. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | Computed on an annualized basis. |
6 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
7 | Represents less than $1,000. |
8 | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended July 31, 2016. |
Assets: | ||
Investment in securities, at value including $84,180,685 of securities loaned, $98,057,042 of investment in affiliated holdings* and $31,307,194 of investments in affiliated companies* (identified cost $724,910,952) | $833,816,675 | |
Income receivable | 126,034 | |
Income receivable from affiliated holdings | 1,985 | |
Receivable for investments sold | 17,446,462 | |
Receivable for shares sold | 585,192 | |
TOTAL ASSETS | 851,976,348 | |
Liabilities: | ||
Payable for investments purchased | $15,925,200 | |
Payable for shares redeemed | 1,348,071 | |
Payable for collateral due to broker for securities lending | 87,174,159 | |
Payable for investment adviser fee (Note 5) | 14,431 | |
Payable for administrative fees (Note 5) | 1,600 | |
Payable for distribution services fee (Note 5) | 10,769 | |
Payable for other service fees (Notes 2 and 5) | 46,452 | |
Accrued expenses (Note 5) | 278,641 | |
TOTAL LIABILITIES | 104,799,323 | |
Net assets for 30,147,683 shares outstanding | $747,177,025 | |
Net Assets Consist of: | ||
Paid-in capital | $678,396,445 | |
Total distributable earnings (loss) | 68,780,580 | |
TOTAL NET ASSETS | $747,177,025 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
Class A Shares: | ||
Net asset value per share ($92,389,437 ÷ 3,867,231 shares outstanding), no par value, unlimited shares authorized | $23.89 | |
Offering price per share (100/94.50 of $23.89) | $25.28 | |
Redemption proceeds per share | $23.89 | |
Class C Shares: | ||
Net asset value per share ($17,481,241 ÷ 844,993 shares outstanding), no par value, unlimited shares authorized | $20.69 | |
Offering price per share | $20.69 | |
Redemption proceeds per share (99.00/100 of $20.69) | $20.48 | |
Institutional Shares: | ||
Net asset value per share ($354,203,508 ÷ 14,138,983 shares outstanding), no par value, unlimited shares authorized | $25.05 | |
Offering price per share | $25.05 | |
Redemption proceeds per share | $25.05 | |
Class R6 Shares: | ||
Net asset value per share ($283,102,839 ÷ 11,296,476 shares outstanding), no par value, unlimited shares authorized | $25.06 | |
Offering price per share | $25.06 | |
Redemption proceeds per share | $25.06 |
* | See information listed after the Fund’s Portfolio of Investments. |
Investment Income: | |||
Dividends (including $231,268 received from affiliated companies and holdings* and net of foreign taxes withheld of $4,713) | $5,831,010 | ||
Net income on securities loaned (includes $1,137,477 earned from affiliated holdings related to cash collateral balances*) (Note 2) | 964,374 | ||
TOTAL INCOME | 6,795,384 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $6,701,584 | ||
Administrative fee (Note 5) | 659,912 | ||
Custodian fees | 74,310 | ||
Transfer agent fee (Note 2) | 906,648 | ||
Directors’/Trustees’ fees (Note 5) | 6,142 | ||
Auditing fees | 27,700 | ||
Legal fees | 7,722 | ||
Portfolio accounting fees | 153,269 | ||
Distribution services fee (Note 5) | 141,294 | ||
Other service fees (Notes 2 and 5) | 265,125 | ||
Share registration costs | 95,888 | ||
Printing and postage | 77,935 | ||
Miscellaneous (Note 5) | 39,870 | ||
TOTAL EXPENSES | 9,157,399 |
Waiver and Reimbursements: | |||
Waiver/reimbursement of investment adviser fee (Note 5) | $(732,169) | ||
Reimbursement of other operating expenses (Notes 2 and 5) | (633,622) | ||
TOTAL WAIVER AND REIMBURSEMENTS | (1,365,791) | ||
Net expenses | 7,791,608 | ||
Net investment income (loss) | (996,224) | ||
Realized and Unrealized Gain (Loss) on Investments: | |||
Net realized loss on investments (including net realized gain of $719,230 on sales of investments in affiliated companies and holdings*) | (33,014,524) | ||
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $9,494,467 on investments in affiliated companies and holdings*) | 37,205,285 | ||
Net realized and unrealized gain (loss) on investments | 4,190,761 | ||
Change in net assets resulting from operations | $3,194,537 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31 | 2020 | 2019 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income (loss) | $(996,224) | $(1,133,718) |
Net realized gain (loss) | (33,014,524) | 2,812,140 |
Net change in unrealized appreciation/depreciation | 37,205,285 | (10,118,739) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 3,194,537 | (8,440,317) |
Distributions to Shareholders: | ||
Class A Shares | — | (4,694,682) |
Class C Shares | — | (1,802,870) |
Institutional Shares | — | (21,193,835) |
Class R6 Shares | — | (10,244,004) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | — | (37,935,391) |
Share Transactions: | ||
Proceeds from sale of shares | 260,125,039 | 662,802,599 |
Proceeds from shares issued in connection with the tax-free transfer of assets from PNC Multi-Factor Small Cap Growth Fund | 102,652,108 | — |
Net asset value of shares issued to shareholders in payment of distributions declared | — | 32,928,721 |
Cost of shares redeemed | (512,259,924) | (310,406,395) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (149,482,777) | 385,324,925 |
Change in net assets | (146,288,240) | 338,949,217 |
Net Assets: | ||
Beginning of period | 893,465,265 | 554,516,048 |
End of period | $747,177,025 | $893,465,265 |
Shares of the Fund Issued | Acquired Fund’s Net Assets Received | Unrealized Appreciation1 | Net Assets of the Fund Immediately Prior to Combination | Net Assets of the Fund Immediately After Combination |
4,360,352 | $102,652,108 | $20,727,223 | $897,256,665 | $999,908,773 |
1 | Unrealized Appreciation is included in the Net Assets Received amount shown above. |
Net investment loss | $(964,618) |
Net realized and unrealized gain on investments | 3,068,318 |
Net increase in net assets resulting from operations | $2,103,700 |
■ | 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. |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | 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 asked quotations. |
■ | Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, 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. |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $216,979 | $(183,381) |
Class C Shares | 29,576 | (21,457) |
Institutional Shares | 581,179 | (428,784) |
Class R6 Shares | 78,914 | – |
TOTAL | $906,648 | $(633,622) |
Other Service Fees Incurred | |
Class A Shares | $219,410 |
Class C Shares | 45,715 |
TOTAL | $265,125 |
Market Value of Securities Loaned | Collateral Received |
$84,180,685 | $87,174,159 |
Year Ended July 31 | 2020 | 2019 | ||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 609,482 | $13,104,153 | 1,528,971 | $35,808,747 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | 1,446,327 | 33,251,055 | – | – |
Shares issued to shareholders in payment of distributions declared | – | – | 206,833 | 4,264,901 |
Shares redeemed | (1,715,867) | (36,704,330) | (1,439,941) | (34,081,411) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 339,942 | $9,650,878 | 295,863 | $5,992,237 |
Year Ended July 31 | 2020 | 2019 | ||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 126,433 | $2,399,164 | 861,349 | $19,805,308 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | 182,602 | 3,655,701 | – | – |
Shares issued to shareholders in payment of distributions declared | – | – | 84,088 | 1,519,470 |
Shares redeemed | (577,979) | (11,036,748) | (622,248) | (12,775,267) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (268,944) | $(4,981,883) | 323,189 | $8,549,511 |
Year Ended July 31 | 2020 | 2019 | ||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 7,454,551 | $168,193,983 | 13,009,742 | $313,124,900 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | 2,548,202 | 61,335,218 | – | – |
Shares issued to shareholders in payment of distributions declared | – | – | 906,635 | 19,519,847 |
Shares redeemed | (14,562,017) | (326,516,625) | (8,855,829) | (217,649,803) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (4,559,264) | $(96,987,424) | 5,060,548 | $114,994,944 |
Year Ended July 31 | 2020 | 2019 | ||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 3,418,303 | $76,427,739 | 11,880,605 | $294,063,644 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | 183,221 | 4,410,134 | – | – |
Shares issued to shareholders in payment of distributions declared | – | – | 354,134 | 7,624,503 |
Shares redeemed | (5,976,222) | (138,002,221) | (1,908,361) | (45,899,914) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | (2,374,698) | $(57,164,348) | 10,326,378 | $255,788,233 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (6,862,964) | $(149,482,777) | 16,005,978 | $385,324,925 |
Increase (Decrease) | |
Paid-In Capital | Total Distributable Earnings (Loss) |
$(634,073) | $634,073 |
2020 | 2019 | |
Ordinary income1 | $- | $19,115,501 |
Long-term capital gains | $- | $18,819,890 |
1 | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Net unrealized appreciation | $93,946,092 |
Capital loss carryforwards and deferrals | $(25,165,512) |
Short-Term | Long-Term | Total |
$23,207,571 | $1,037,917 | $24,245,488 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Percentage of Average Daily Net Assets of Class | |
Class A Shares | 0.05% |
Class C Shares | 0.75% |
Distribution Services Fees Incurred | |
Class C Shares | $141,294 |
Purchases | $1,868,750,417 |
Sales | $2,033,306,095 |
Beginning Account Value 2/1/2020 | Ending Account Value 7/31/2020 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,017.90 | $5.67 |
Class C Shares | $1,000 | $1,014.20 | $9.42 |
Institutional Shares | $1,000 | $1,019.10 | $4.42 |
Class R6 Shares | $1,000 | $1,019.10 | $4.37 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,019.20 | $5.67 |
Class C Shares | $1,000 | $1,015.50 | $9.42 |
Institutional Shares | $1,000 | $1,020.50 | $4.42 |
Class R6 Shares | $1,000 | $1,020.50 | $4.37 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.13% |
Class C Shares | 1.88% |
Institutional Shares | 0.88% |
Class R6 Shares | 0.87% |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2016 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company; President of some of the Funds in the Federated Hermes Fund Family and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; President and CEO of Passport Research, Ltd.; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Hermes, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. and President, Technology, Federated Services Company. |
* | Reasons for “interested” status: J. Christopher Donahue and John B. Fisher are interested due to their beneficial ownership of shares of Federated Hermes, Inc. and due to positions they hold with Federated Hermes, Inc. and its subsidiaries. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Chairman of the Board of Directors, Director, and Chairman of the Compensation Committee, KLX Energy Services Holdings, Inc. (oilfield services); former Director of KLX Corp. (aerospace). Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm) and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Director, Member of the Audit Committee, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green was appointed by the Supreme Court of Pennsylvania to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); Director, Catholic Charities, Pittsburgh; and Director CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; and Director and Chair, North Catholic High School, Inc. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant and Author. Other Directorships Held: None. Qualifications: Mr. Mansfield has served as a Marine Corps officer and in several banking, business management, educational roles and directorship positions throughout his long career. He remains active as a Management Consultant and Author. |
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity and Director, The Golisano Children’s Museum of Naples, Florida. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CNX Resources Corporation (formerly known as CONSOL Energy Inc.); and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp. and Edgewood Services, Inc.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: June 2006 | Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc. |
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: June 2012 | Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
■ | the liquidity risk framework used to assess, manage, and periodically review each Fund’s liquidity risk and the results of this assessment, including a review of the Funds’ access to other available funding sources such as the Funds’ interfund lending facility, redemptions in-kind and committed lines of credit and confirmation that the Fund did not have to access any of these alternative funding sources during the Period; |
■ | the periodic classifications of the Fund’s investments into one of four liquidity categories and the methodologies and inputs used to classify the investments, including the Fund’s reasonably anticipated trade size; |
■ | the analysis received from a third-party liquidity assessment vendor that is taken into account in the process of determining the liquidity classifications of the Fund’s investments and the results of an evaluation of the services performed by the vendor in support of this process; |
■ | the fact that the Fund invested primarily in highly liquid investments during the Period and, therefore, was not required to establish, and has not established, an HLIM and the procedures for monitoring the status of the Fund as investing primarily in highly liquid investments; |
■ | the fact that the Fund invested no more than 15% of its assets in illiquid investments during the Period and the procedures for monitoring this limit; and |
■ | liquidity events during the Period, including the impact on liquidity caused by extended non-U.S. market closures and the market disruptions resulting from the novel coronavirus outbreak, and the fact that there were no specific liquidity events during the Period that materially affected the Fund’s liquidity risk. |
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31421R767
CUSIP 31421R759
CUSIP 31421R619
Item 2. | Code of Ethics |
(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics (the "Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers") that applies to the registrant's Principal Executive Officer and Principal Financial Officer; the registrant's Principal Financial Officer also serves as the Principal Accounting Officer.
(c) There was no amendment to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.
(d) There was no waiver granted, either actual or implicit, from a provision to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.
(e) Not Applicable
(f)(3) The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.
Item 3. Audit Committee Financial Expert
The registrant's Board has determined that each of the following members of the Board's Audit Committee is an “audit committee financial expert,” and is "independent," for purposes of this Item: John T. Collins, G. Thomas Hough and Thomas M. O'Neill.
Item 4. | Principal Accountant Fees and Services |
(a) Audit Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2020 – $146,200
Fiscal year ended 2019 - $142,400
(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2020 - $0
Fiscal year ended 2019 - $0
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $11,145 and $0 respectively. Fiscal year ended 2020- Audit consent fees for N-14 merger document.
(c) Tax Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2020 - $0
Fiscal year ended 2019 - $0
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(d) All Other Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2020 - $0
Fiscal year ended 2019 - $0
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $42,456 and $27,403 respectively. Fiscal year ended 2020- Service fee for analysis of potential Passive Foreign Investment Company holdings. Fiscal year ended 2019- Service fee for analysis of potential Passive Foreign Investment Company holdings.
(e)(1) Audit Committee Policies regarding Pre-approval of Services.
The Audit Committee is required to pre-approve audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor’s independence. Unless a type of service to be provided by the independent auditor has received general pre-approval, it will require specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.
Certain services have the general pre-approval of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate to management its responsibilities to pre-approve services performed by the independent auditor.
The Audit Committee has delegated pre-approval authority to its Chairman for services that do not exceed a specified dollar threshold. The Chairman or Chief Audit Executive will report any such pre-approval decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with such pre-approval authority when the Chairman is unavailable.
AUDIT SERVICES
The annual Audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee will approve, if necessary, any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.
In addition to the annual Audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other Audit services, which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain Audit services; with limited exception, all other audit services must be specifically pre-approved by the Audit Committee.
AUDIT-RELATED SERVICES
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the RIC’s financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of Audit-related services does not impair the independence of the auditor, and has pre-approved certain audit-related services; all other audit-related services must be specifically pre-approved by the Audit Committee.
TAX SERVICES
The Audit Committee believes that the independent auditor can provide Tax services to the RIC such as tax compliance, tax planning and tax advice without impairing the auditor’s independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved certain Tax services; with limited exception, all tax services involving large and complex transactions must be specifically pre-approved by the Audit Committee.
ALL OTHER SERVICES
With respect to the provision of permissible services other than audit, review or attest services the pre-approval requirement is waived if:
(1) | With respect to such services rendered to the Funds, the aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues paid by the audit client to its accountant during the fiscal year in which the services are provided; and, |
(2) | With respect to such services rendered to the Fund’s investment adviser and any entity controlling, controlled by to under common control with the investment adviser such as affiliated non-U.S. and U.S. funds not under the Audit Committee’s purview and which do not fall within a category of service which has been determined by the Audit Committee not to have a direct impact on the operations or financial reporting of the RIC, the aggregate amount of all services provided constitutes no more than five percent of the total amount of revenues paid to the RIC’s auditor by the RIC, its investment adviser and any entity controlling, controlled by, or under common control with the investment adviser during the fiscal year in which the services are provided; and |
(3) | Such services were not recognized by the issuer or RIC at the time of the engagement to be non-audit services; and |
(4) | Such services are promptly brought to the attention of the Audit Committee and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee who are members of the Board of Directors to whom authority to grant such approvals has been delegated by the Audit Committee. |
The Audit Committee may grant general pre-approval to those permissible non-audit services which qualify for pre-approval and which it believes are routine and recurring services, and would not impair the independence of the auditor.
The SEC’s rules and relevant guidance should be consulted to determine the precise definitions of these services and applicability of exceptions to certain of the prohibitions.
PRE-APPROVAL FEE LEVELS
Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee.
PROCEDURES
Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by the Fund’s Principal Accounting Officer and/or the Chief Audit Executive of Federated Hermes, Inc., only after those individuals have determined that the request or application is consistent with the SEC’s rules on auditor independence.
(e)(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
4(b)
Fiscal year ended 2020 – 0%
Fiscal year ended 2019 - 0%
Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(c)
Fiscal year ended 2020 – 0%
Fiscal year ended 2019 – 0%
Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(d)
Fiscal year ended 2020 – 0%
Fiscal year ended 2019 – 0%
Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
(f) | NA |
(g) | Non-Audit Fees billed to the registrant, the registrant’s investment adviser, and certain entities controlling, controlled by or under common control with the investment adviser: |
Fiscal year ended 2020 - $150,395
Fiscal year ended 2019 - $624,400
(h) | The registrant’s Audit Committee has considered that the provision of non-audit services that were rendered to the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. |
The registrant’s management and Audit Committee continue to believe that the registrant’s registered public accounting firm, Ernst & Young LLP (“EY”), has the ability to exercise objective and impartial judgment on all issues encompassed within their audit services. EY is required to make a determination that it satisfies certain independence requirements under the federal securities laws. Like other registrants, there is a risk that activities or relationships of EY, or its partners or employees, can prevent a determination from being made that it satisfies such independence requirements with respect to the registrant, which could render it ineligible to serve as the registrant’s independent public accountant.
In its required communications to the Audit Committee of the registrant’s Board, EY informed the Audit Committee that EY and/or covered person professionals within EY maintain lending relationships with certain owners of greater than 10% of the shares of certain investment companies within the “investment company complex” as defined under Rule 2-01(f)(14) of Regulation S-X, which are affiliates of the registrant. EY has advised the Audit Committee that these lending relationships implicate Rule 2-01(c)(1)(ii)(A) of Regulation S-X (referred to as the “Loan Rule”). The Loan Rule prohibits an independent public accountant, or covered person professionals at such firm, from having a financial relationship (such as a loan) with a lender that is a record or beneficial owner of more than 10% of an audit client’s equity securities. For purposes of the Loan Rule, audit clients include the registrant, as well as all registered investment companies advised by advisory subsidiaries of Federated Hermes, Inc., the Adviser (for which EY serves as independent public accountant), and their respective affiliates (collectively, the “Federated Hermes Fund Complex”).
EY informed the Audit Committee that EY believes that these lending relationships described above do not and will not impair EY’s ability to exercise objective and impartial judgment in connection with financial statement audits of their respective funds of the registrant and a reasonable investor with knowledge of all relevant facts and circumstances would conclude that EY has been and is capable of objective and impartial judgment on all issues encompassed within EY’s audits.
On June 20, 2016, the Division of Investment Management of the Securities and Exchange Commission (“SEC”) issued a no-action letter to another mutual fund complex (see Fidelity Management & Research Company et al., No-Action Letter) related to similar Loan Rule matters as those described above (the “Letter”). In the Letter, the SEC Staff confirmed that it would not recommend enforcement action against an investment company that relied on the audit services performed by an independent public accountant where the Loan Rule was implicated in certain specified circumstances provided that: (1) the auditor has complied with PCAOB Rule 3526(b)(1) and 3526(b)(2); (2) the Loan Rule is implicated because of lending relationships; and (3) notwithstanding such lending relationships that implicate the Loan Rule, the auditor has concluded that it is objective and impartial with respect to the issues encompassed within its engagement as auditor of the funds. The circumstances described in the Letter are substantially similar to the circumstances that implicated the Loan Rule with respect to EY and the registrant. On September 22, 2017, the SEC extended the expiration of the Letter until the effectiveness of any amendments to the Loan Rule designed to address the concerns in the Letter. On June 18, 2019, the SEC adopted amendments (effective October 3, 2019) to the Loan Rule, which, refocus the analysis that must be conducted to determine whether an auditor is independent when the auditor has a lending relationship with certain shareholders of an audit client at any time during an audit or professional engagement period.
If it were to be determined that, with respect to the Loan Rule, the relief available under the Letter was improperly relied upon, or that the independence requirements under the federal securities laws were not complied with regarding the registrant, for certain periods, and/or given the implication of the Investment Rule for certain periods, any of the registrant’s filings with the SEC which contain financial statements of the registrant for such periods may be determined not to be consistent with or comply with applicable federal securities laws, the registrant’s ability to offer shares under its current registration statement may be impacted, and certain financial reporting and/or other covenants with, and representations and warranties to, the registrant’s lender under its committed line of credit may be impacted. Such events could have a material adverse effect on the registrant and the Federated Hermes Fund Complex.
Item 5. | Audit Committee of Listed Registrants |
Not Applicable
Item 6. | Schedule of Investments |
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
Item 8. | Portfolio Managers of Closed-End Management Investment Companies |
Not Applicable
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
Not Applicable
Item 10. | Submission of Matters to a Vote of Security Holders |
No Changes to Report
Item 11. | Controls and Procedures |
(a) The registrant’s President and Treasurer have concluded that the
registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the registrant’s most recent fiscal half-year (the registrant’s second fiscal half-year in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies |
Not Applicable
Item 13. | Exhibits |
(a)(1) Code of Ethics- Not Applicable to this Report.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Federated Hermes MDT Series
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date September 22, 2020
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /S/ J. Christopher Donahue
J. Christopher Donahue, Principal Executive Officer
Date September 22, 2020
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date September 22, 2020