United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-6447
(Investment Company Act File Number)
Federated Hermes Fixed Income Securities, Inc.
_______________________________________________________________
(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: 11/30/21
Date of Reporting Period: 11/30/21
Item 1. | Reports to Stockholders |
Share Class | Ticker | A | STIAX | B | SINBX | C | SINCX |
F | STFSX | Institutional | STISX | R6 | STILX |
Federated Hermes Strategic Income Fund
A Portfolio of Federated Hermes Fixed Income Securities, Inc.
1 Year | 5 Years | 10 Years | |
Class A Shares | -0.96% | 3.86% | 3.96% |
Class B Shares | -2.56% | 3.66% | 3.81% |
Class C Shares | 1.96% | 4.04% | 3.83% |
Class F Shares | 1.78% | 4.60% | 4.33% |
Institutional Shares | 4.09% | 5.16% | 4.72% |
Class R6 Shares5 | 4.08% | 5.14% | 4.60% |
BAB | -1.15% | 3.65% | 3.04% |
Blended Index | 1.36% | 4.32% | 5.06% |
MMBFA | 3.02% | 4.31% | 4.47% |
Portfolio Composition | Percentage of Total Net Assets2 |
Corporate Debt Securities | 55.5% |
Mortgage-Backed Securities3 | 10.9% |
Foreign Government Securities | 8.5% |
Cash Equivalents4 | 7.8% |
Bank Loan Core Fund | 5.1% |
U.S. Treasury Securities | 5.1% |
Other Security Types5 | 4.4% |
Collateralized Mortgage Obligations | 0.8% |
Asset-Backed Securities | 0.5% |
Derivative Contracts6 | (0.7)% |
Other Assets and Liabilities—Net7 | 2.1% |
TOTAL | 100% |
1 | See the Fund’s Prospectus and Statement of Additional Information for a description of these investments. |
2 | 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 greater than 10% of its net assets are not treated as a single portfolio security, but rather the Fund is treated as owning a pro rata portion of each security and each other asset and liability owned by the affiliated investment company. Accordingly, the percentages of total net assets shown in the table will differ from those presented on the Portfolio of Investments. 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. |
3 | For purposes of this table, Mortgage-Backed Securities include mortgage-backed securities guaranteed by Government Sponsored Entities and adjustable rate mortgage-backed securities. |
4 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing securities lending collateral. |
5 | Other Security Types consist of common stock, preferred stock, purchased options and exchange-traded funds. |
6 | 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. |
7 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Principal Amount, Shares or Contracts | Value | ||
U.S. TREASURIES— 5.1% | |||
Treasury Securities— 5.1% | |||
$11,000,000 | United States Treasury Bond, 2.375%, 5/15/2051 | $12,463,190 | |
10,000,000 | United States Treasury Note, 0.125%, 4/30/2023 | 9,961,955 | |
20,000,000 | United States Treasury Note, 0.750%, 11/15/2024 | 19,954,688 | |
18,000,000 | United States Treasury Note, 1.625%, 5/15/2031 | 18,351,879 | |
TOTAL U.S. TREASURIES (IDENTIFIED COST $60,715,281) | 60,731,712 | ||
CORPORATE BONDS— 4.8% | |||
Basic Industry - Chemicals— 0.0% | |||
135,000 | Albemarle Corp., Sr. Unsecd. Note, 5.450%, 12/1/2044 | 179,093 | |
Basic Industry - Metals & Mining— 0.1% | |||
200,000 | Anglo American Capital PLC, Sr. Unsecd. Note, 144A, 3.625%, 9/11/2024 | 211,112 | |
75,000 | Glencore Funding LLC, Sr. Unsecd. Note, 144A, 1.625%, 4/27/2026 | 73,709 | |
55,000 | Glencore Funding LLC, Sr. Unsecd. Note, 144A, 3.375%, 9/23/2051 | 53,330 | |
200,000 | Southern Copper Corp., Sr. Unsecd. Note, 6.750%, 4/16/2040 | 275,921 | |
TOTAL | 614,072 | ||
Capital Goods - Aerospace & Defense— 0.1% | |||
80,000 | BAE Systems Holdings, Inc., Sr. Unsecd. Note, 144A, 3.850%, 12/15/2025 | 86,351 | |
100,000 | Boeing Co., Sr. Unsecd. Note, 2.196%, 2/4/2026 | 99,848 | |
215,000 | Boeing Co., Sr. Unsecd. Note, 3.625%, 2/1/2031 | 228,574 | |
30,000 | Boeing Co., Sr. Unsecd. Note, 3.950%, 8/1/2059 | 31,374 | |
160,000 | Huntington Ingalls Industries, Inc., Sr. Unsecd. Note, 3.483%, 12/1/2027 | 170,666 | |
65,000 | Leidos, Inc., Sr. Unsecd. Note, Series WI, 2.300%, 2/15/2031 | 63,076 | |
35,000 | Leidos, Inc., Sr. Unsecd. Note, Series WI, 3.625%, 5/15/2025 | 37,384 | |
100,000 | Leidos, Inc., Sr. Unsecd. Note, Series WI, 4.375%, 5/15/2030 | 112,456 | |
200,000 | Lockheed Martin Corp., Sr. Unsecd. Note, 2.900%, 3/1/2025 | 210,095 | |
85,000 | Northrop Grumman Corp., Sr. Unsecd. Note, 3.250%, 1/15/2028 | 90,781 | |
200,000 | Textron, Inc., Sr. Unsecd. Note, 4.300%, 3/1/2024 | 211,733 | |
TOTAL | 1,342,338 | ||
Capital Goods - Building Materials— 0.0% | |||
20,000 | Allegion PLC, Sr. Unsecd. Note, 3.500%, 10/1/2029 | 21,486 | |
80,000 | Allegion US Holdings Co., Inc., Sr. Unsecd. Note, 3.200%, 10/1/2024 | 83,833 | |
140,000 | Allegion US Holdings Co., Inc., Sr. Unsecd. Note, 3.550%, 10/1/2027 | 149,648 | |
35,000 | Carrier Global Corp., Sr. Unsecd. Note, 2.722%, 2/15/2030 | 35,750 | |
TOTAL | 290,717 |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS— continued | |||
Capital Goods - Construction Machinery— 0.3% | |||
$ 3,590,000 | Ashtead Capital, Inc., Sr. Unsecd. Note, 144A, 2.450%, 8/12/2031 | $3,537,167 | |
195,000 | CNH Industrial NV, Sr. Unsecd. Note, Series MTN, 3.850%, 11/15/2027 | 212,742 | |
100,000 | John Deere Capital Corp., Sr. Unsecd. Note, Series MTN, 3.450%, 3/7/2029 | 110,553 | |
TOTAL | 3,860,462 | ||
Capital Goods - Diversified Manufacturing— 0.1% | |||
85,000 | General Electric Co., Sr. Unsecd. Note, 3.625%, 5/1/2030 | 95,883 | |
90,000 | Lennox International, Inc., Sr. Unsecd. Note, 1.350%, 8/1/2025 | 89,369 | |
100,000 | Roper Technologies, Inc., Sr. Unsecd. Note, 1.750%, 2/15/2031 | 93,394 | |
80,000 | Valmont Industries, Inc., 5.250%, 10/1/2054 | 105,147 | |
90,000 | Valmont Industries, Inc., Sr. Unsecd. Note, 5.000%, 10/1/2044 | 113,677 | |
90,000 | Wabtec Corp., Sr. Unsecd. Note, 3.200%, 6/15/2025 | 94,436 | |
65,000 | Xylem, Inc., Sr. Unsecd. Note, 2.250%, 1/30/2031 | 65,391 | |
TOTAL | 657,297 | ||
Communications - Cable & Satellite— 0.1% | |||
65,000 | Charter Communications Operating LLC, 5.375%, 5/1/2047 | 78,115 | |
60,000 | Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., Sec. Fac. Bond, 3.700%, 4/1/2051 | 58,298 | |
50,000 | Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., Sec. Fac. Bond, 3.850%, 4/1/2061 | 47,895 | |
50,000 | Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., Term Loan - 1st Lien, 3.900%, 6/1/2052 | 50,636 | |
325,000 | Comcast Corp., Sr. Unsecd. Note, 1.500%, 2/15/2031 | 305,812 | |
200,000 | Comcast Corp., Sr. Unsecd. Note, 3.150%, 2/15/2028 | 214,908 | |
100,000 | Comcast Corp., Sr. Unsecd. Note, 3.400%, 4/1/2030 | 109,170 | |
30,000 | Comcast Corp., Sr. Unsecd. Note, 3.450%, 2/1/2050 | 32,414 | |
200,000 | Comcast Corp., Sr. Unsecd. Note, 3.950%, 10/15/2025 | 218,219 | |
TOTAL | 1,115,467 | ||
Communications - Media & Entertainment— 0.1% | |||
35,000 | Alphabet, Inc., Sr. Unsecd. Note, 1.900%, 8/15/2040 | 32,123 | |
150,000 | Interpublic Group of Cos., Inc., Sr. Unsecd. Note, 3.375%, 3/1/2041 | 158,929 | |
25,000 | ViacomCBS, Inc., Sr. Unsecd. Note, 4.000%, 1/15/2026 | 27,126 | |
100,000 | ViacomCBS, Inc., Sr. Unsecd. Note, 4.950%, 1/15/2031 | 118,816 | |
40,000 | ViacomCBS, Inc., Sr. Unsecd. Note, 4.950%, 5/19/2050 | 50,597 | |
300,000 | Walt Disney Co., Sr. Unsecd. Note, 2.650%, 1/13/2031 | 311,751 | |
TOTAL | 699,342 | ||
Communications - Telecom Wireless— 0.0% | |||
235,000 | American Tower Corp., Sr. Unsecd. Note, 5.000%, 2/15/2024 | 253,927 | |
140,000 | Crown Castle International Corp., Sr. Unsecd. Note, 5.200%, 2/15/2049 | 183,508 |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS— continued | |||
Communications - Telecom Wireless— continued | |||
$ 60,000 | T-Mobile USA, Inc., 3.300%, 2/15/2051 | $58,473 | |
25,000 | T-Mobile USA, Inc., Sec. Fac. Bond, 4.500%, 4/15/2050 | 29,285 | |
TOTAL | 525,193 | ||
Communications - Telecom Wirelines— 0.1% | |||
100,000 | AT&T, Inc., Sr. Unsecd. Note, 0.900%, 3/25/2024 | 99,385 | |
100,000 | AT&T, Inc., Sr. Unsecd. Note, 1.700%, 3/25/2026 | 99,908 | |
175,000 | AT&T, Inc., Sr. Unsecd. Note, 2.550%, 12/1/2033 | 169,308 | |
100,000 | AT&T, Inc., Sr. Unsecd. Note, 2.750%, 6/1/2031 | 101,672 | |
125,000 | AT&T, Inc., Sr. Unsecd. Note, 3.650%, 6/1/2051 | 130,087 | |
40,000 | AT&T, Inc., Sr. Unsecd. Note, 3.850%, 6/1/2060 | 41,920 | |
85,000 | AT&T, Inc., Sr. Unsecd. Note, Series WI, 5.300%, 8/15/2058 | 110,690 | |
150,000 | Telefonica Emisiones SAU, Sr. Unsecd. Note, 5.213%, 3/8/2047 | 188,038 | |
50,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 3.000%, 3/22/2027 | 52,826 | |
65,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 3.550%, 3/22/2051 | 71,403 | |
TOTAL | 1,065,237 | ||
Consumer Cyclical - Automotive— 0.3% | |||
100,000 | General Motors Co., Sr. Unsecd. Note, 5.200%, 4/1/2045 | 123,685 | |
50,000 | General Motors Co., Sr. Unsecd. Note, 5.400%, 4/1/2048 | 64,212 | |
25,000 | General Motors Financial Co., Inc., Sr. Unsecd. Note, 4.150%, 6/19/2023 | 26,120 | |
50,000 | Hyundai Capital America, Sr. Unsecd. Note, 144A, 0.800%, 1/8/2024 | 49,615 | |
60,000 | Hyundai Capital America, Sr. Unsecd. Note, 144A, 2.375%, 2/10/2023 | 61,011 | |
25,000 | Hyundai Capital America, Sr. Unsecd. Note, 144A, 2.375%, 10/15/2027 | 24,990 | |
3,000,000 | Hyundai Capital America, Sr. Unsecd. Note, 144A, 3.000%, 2/10/2027 | 3,126,814 | |
175,000 | Nissan Motor Acceptance Company LLC., Sr. Unsecd. Note, 144A, 1.850%, 9/16/2026 | 170,010 | |
200,000 | Stellantis Finance US, Inc., 144A, 1.711%, 1/29/2027 | 196,336 | |
200,000 | Stellantis N.V., Sr. Unsecd. Note, 5.250%, 4/15/2023 | 211,818 | |
TOTAL | 4,054,611 | ||
Consumer Cyclical - Retailers— 0.1% | |||
160,000 | Advance Auto Parts, Inc., Sr. Unsecd. Note, Series WI, 3.900%, 4/15/2030 | 175,822 | |
50,000 | Alimentation Couche-Tard, Inc., Sr. Unsecd. Note, 144A, 3.550%, 7/26/2027 | 53,813 | |
100,000 | Alimentation Couche-Tard, Inc., Sr. Unsecd. Note, 144A, 3.800%, 1/25/2050 | 109,372 | |
25,000 | AutoNation, Inc., Sr. Unsecd. Note, 2.400%, 8/1/2031 | 24,267 | |
45,000 | AutoNation, Inc., Sr. Unsecd. Note, 4.500%, 10/1/2025 | 49,180 |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS— continued | |||
Consumer Cyclical - Retailers— continued | |||
$ 20,000 | AutoNation, Inc., Sr. Unsecd. Note, 4.750%, 6/1/2030 | $23,170 | |
75,000 | CVS Health Corp., Sr. Unsecd. Note, 2.625%, 8/15/2024 | 77,587 | |
250,000 | CVS Health Corp., Sr. Unsecd. Note, 5.050%, 3/25/2048 | 330,800 | |
100,000 | Dollar Tree, Inc., Sr. Unsecd. Note, 3.700%, 5/15/2023 | 103,901 | |
60,000 | Home Depot, Inc., Sr. Unsecd. Note, 2.700%, 4/15/2030 | 62,975 | |
120,000 | Home Depot, Inc., Sr. Unsecd. Note, 2.950%, 6/15/2029 | 128,037 | |
50,000 | O’Reilly Automotive, Inc., Sr. Unsecd. Note, 3.600%, 9/1/2027 | 54,638 | |
TOTAL | 1,193,562 | ||
Consumer Cyclical - Services— 0.1% | |||
50,000 | Amazon.com, Inc., Sr. Unsecd. Note, 2.100%, 5/12/2031 | 50,271 | |
250,000 | Amazon.com, Inc., Sr. Unsecd. Note, 3.150%, 8/22/2027 | 269,351 | |
200,000 | Cintas Corp. No. 2, Sr. Unsecd. Note, 3.700%, 4/1/2027 | 218,543 | |
60,000 | Expedia Group, Inc., Sr. Unsecd. Note, 144A, 6.250%, 5/1/2025 | 68,150 | |
120,000 | Visa, Inc., Sr. Unsecd. Note, 2.750%, 9/15/2027 | 127,360 | |
TOTAL | 733,675 | ||
Consumer Non-Cyclical - Food/Beverage— 0.2% | |||
60,000 | Anheuser-Busch Cos LLC / Anheuser-Busch InBev Worldwide, Inc., Sr. Unsecd. Note, 4.700%, 2/1/2036 | 72,208 | |
250,000 | Anheuser-Busch Cos LLC / Anheuser-Busch InBev Worldwide, Inc., Sr. Unsecd. Note, 4.900%, 2/1/2046 | 317,794 | |
50,000 | Anheuser-Busch InBev Finance, Inc., 3.650%, 2/1/2026 | 53,868 | |
50,000 | Anheuser-Busch InBev Worldwide, Inc., Sr. Unsecd. Note, 4.600%, 4/15/2048 | 61,360 | |
150,000 | Coca-Cola Femsa S.A.B. de C.V., Sr. Unsecd. Note, 1.850%, 9/1/2032 | 142,289 | |
150,000 | Coca-Cola Femsa S.A.B. de C.V., Sr. Unsecd. Note, 2.750%, 1/22/2030 | 154,277 | |
50,000 | Constellation Brands, Inc., Sr. Unsecd. Note, 4.400%, 11/15/2025 | 55,117 | |
100,000 | Constellation Brands, Inc., Sr. Unsecd. Note, 5.250%, 11/15/2048 | 133,805 | |
35,000 | Flowers Foods, Inc., Sr. Unsecd. Note, 2.400%, 3/15/2031 | 34,720 | |
50,000 | Flowers Foods, Inc., Sr. Unsecd. Note, 3.500%, 10/1/2026 | 54,005 | |
90,000 | International Flavors & Fragrances, Inc., Sr. Unsecd. Note, 144A, 1.832%, 10/15/2027 | 88,768 | |
100,000 | Keurig Dr Pepper, Inc., Sr. Unsecd. Note, 5.085%, 5/25/2048 | 132,106 | |
50,000 | Kraft Heinz Foods Co., Sr. Unsecd. Note, 3.000%, 6/1/2026 | 52,117 | |
100,000 | Kraft Heinz Foods Co., Sr. Unsecd. Note, 4.375%, 6/1/2046 | 115,885 | |
35,000 | McCormick & Co., Inc., Sr. Unsecd. Note, 2.500%, 4/15/2030 | 35,579 | |
100,000 | Smithfield Foods, Inc., Sr. Unsecd. Note, 144A, 3.000%, 10/15/2030 | 100,572 | |
70,000 | Smithfield Foods, Inc., Sr. Unsecd. Note, 144A, 4.250%, 2/1/2027 | 75,495 | |
155,000 | Sysco Corp., Sr. Unsecd. Note, 3.300%, 7/15/2026 | 164,606 |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS— continued | |||
Consumer Non-Cyclical - Food/Beverage— continued | |||
$ 75,000 | Sysco Corp., Sr. Unsecd. Note, 4.450%, 3/15/2048 | $89,477 | |
TOTAL | 1,934,048 | ||
Consumer Non-Cyclical - Health Care— 0.1% | |||
55,000 | Agilent Technologies, Inc., Sr. Unsecd. Note, 2.100%, 6/4/2030 | 54,017 | |
80,000 | Dentsply Sirona, Inc., Sr. Unsecd. Note, 3.250%, 6/1/2030 | 85,242 | |
45,000 | DH Europe Finance II S.a.r.l., Sr. Unsecd. Note, 2.600%, 11/15/2029 | 46,946 | |
150,000 | HCA, Inc., Sec. Fac. Bond, 3.500%, 7/15/2051 | 153,533 | |
85,000 | PerkinElmer, Inc., Sr. Unsecd. Note, 1.900%, 9/15/2028 | 83,020 | |
170,000 | PerkinElmer, Inc., Sr. Unsecd. Note, 3.300%, 9/15/2029 | 180,439 | |
100,000 | Thermo Fisher Scientific, Inc., Sr. Unsecd. Note, 1.215%, 10/18/2024 | 100,025 | |
35,000 | Thermo Fisher Scientific, Inc., Sr. Unsecd. Note, 4.133%, 3/25/2025 | 37,913 | |
TOTAL | 741,135 | ||
Consumer Non-Cyclical - Pharmaceuticals— 0.1% | |||
150,000 | AbbVie, Inc., Sr. Unsecd. Note, 2.950%, 11/21/2026 | 157,962 | |
90,000 | AbbVie, Inc., Sr. Unsecd. Note, 3.200%, 11/21/2029 | 95,624 | |
90,000 | AbbVie, Inc., Sr. Unsecd. Note, 4.250%, 11/21/2049 | 108,437 | |
200,000 | AstraZeneca PLC, Sr. Unsecd. Note, 4.000%, 1/17/2029 | 226,286 | |
200,000 | Bayer US Finance II LLC, Sr. Unsecd. Note, 144A, 4.250%, 12/15/2025 | 217,853 | |
90,000 | Biogen, Inc., Sr. Unsecd. Note, 2.250%, 5/1/2030 | 88,142 | |
75,000 | Bristol-Myers Squibb Co., Sr. Unsecd. Note, Series WI, 3.400%, 7/26/2029 | 82,242 | |
55,000 | Bristol-Myers Squibb Co., Sr. Unsecd. Note, Series WI, 4.250%, 10/26/2049 | 68,721 | |
50,000 | Royalty Pharma PLC, Sr. Unsecd. Note, Series WI, 0.750%, 9/2/2023 | 49,742 | |
50,000 | Royalty Pharma PLC, Sr. Unsecd. Note, Series WI, 1.200%, 9/2/2025 | 49,082 | |
TOTAL | 1,144,091 | ||
Consumer Non-Cyclical - Products— 0.0% | |||
150,000 | Procter & Gamble Co., Sr. Unsecd. Note, 3.000%, 3/25/2030 | 163,406 | |
Consumer Non-Cyclical - Supermarkets— 0.0% | |||
75,000 | Kroger Co., Sr. Unsecd. Note, 4.450%, 2/1/2047 | 91,571 | |
Consumer Non-Cyclical - Tobacco— 0.0% | |||
80,000 | Altria Group, Inc., Sr. Unsecd. Note, 2.450%, 2/4/2032 | 75,377 | |
80,000 | Altria Group, Inc., Sr. Unsecd. Note, 2.625%, 9/16/2026 | 82,805 | |
100,000 | Altria Group, Inc., Sr. Unsecd. Note, 3.700%, 2/4/2051 | 94,609 | |
50,000 | Bat Capital Corp., Sr. Unsecd. Note, 3.984%, 9/25/2050 | 48,939 | |
100,000 | Reynolds American, Inc., Sr. Unsecd. Note, 7.000%, 8/4/2041 | 134,625 | |
TOTAL | 436,355 | ||
Energy - Independent— 0.0% | |||
175,000 | Coterra Energy, Inc., Sr. Unsecd. Note, 144A, 4.375%, 3/15/2029 | 194,972 |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS— continued | |||
Energy - Independent— continued | |||
$ 170,000 | Hess Corp., Sr. Unsecd. Note, 5.600%, 2/15/2041 | $209,878 | |
25,000 | Marathon Oil Corp., Sr. Unsecd. Note, 4.400%, 7/15/2027 | 27,372 | |
50,000 | Marathon Oil Corp., Sr. Unsecd. Note, 5.200%, 6/1/2045 | 59,179 | |
TOTAL | 491,401 | ||
Energy - Integrated— 0.1% | |||
175,000 | Cenovus Energy, Inc., Sr. Unsecd. Note, 4.250%, 4/15/2027 | 190,844 | |
300,000 | Exxon Mobil Corp., Sr. Unsecd. Note, 3.482%, 3/19/2030 | 329,650 | |
75,000 | Shell International Finance B.V., Sr. Unsecd. Note, 2.750%, 4/6/2030 | 78,462 | |
70,000 | Shell International Finance B.V., Sr. Unsecd. Note, 4.000%, 5/10/2046 | 82,308 | |
TOTAL | 681,264 | ||
Energy - Midstream— 0.1% | |||
145,000 | Boardwalk Pipeline Partners LP, Sr. Unsecd. Note, 4.800%, 5/3/2029 | 164,340 | |
250,000 | Energy Transfer Partners LP, Sr. Unsecd. Note, 4.900%, 2/1/2024 | 265,677 | |
100,000 | Enterprise Products Operating LLC, Sr. Unsecd. Note, 3.700%, 1/31/2051 | 105,756 | |
75,000 | Kinder Morgan Energy Partners LP, Sr. Unsecd. Note, 4.150%, 2/1/2024 | 79,268 | |
200,000 | Kinder Morgan Energy Partners LP, Sr. Unsecd. Note, 6.375%, 3/1/2041 | 268,705 | |
100,000 | ONEOK, Inc., Sr. Unsecd. Note, 4.550%, 7/15/2028 | 111,840 | |
50,000 | ONEOK, Inc., Sr. Unsecd. Note, 5.200%, 7/15/2048 | 60,363 | |
115,000 | TC Pipelines, LP, Sr. Unsecd. Note, 3.900%, 5/25/2027 | 126,301 | |
TOTAL | 1,182,250 | ||
Energy - Refining— 0.2% | |||
2,500,000 | Valero Energy Corp., Sr. Unsecd. Note, 3.650%, 12/1/2051 | 2,461,383 | |
160,000 | Valero Energy Corp., Sr. Unsecd. Note, 4.000%, 4/1/2029 | 174,020 | |
TOTAL | 2,635,403 | ||
Financial Institution - Banking— 0.5% | |||
150,000 | Associated Banc-Corp., Sub. Note, 4.250%, 1/15/2025 | 160,194 | |
90,000 | Bank of America Corp., Sr. Unsecd. Note, 2.299%, 7/21/2032 | 88,375 | |
100,000 | Bank of America Corp., Sr. Unsecd. Note, 2.572%, 10/20/2032 | 100,500 | |
200,000 | Bank of America Corp., Sr. Unsecd. Note, 2.592%, 4/29/2031 | 201,774 | |
350,000 | Bank of America Corp., Sr. Unsecd. Note, 2.687%, 4/22/2032 | 354,626 | |
100,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 2.884%, 10/22/2030 | 103,442 | |
250,000 | Bank of America Corp., Sub. Note, Series MTN, 4.000%, 1/22/2025 | 267,566 | |
100,000 | Bank of New York Mellon Corp., Sr. Unsecd. Note, Series MTN, 2.661%, 5/16/2023 | 100,897 | |
95,000 | Capital One Financial Corp., Sr. Unsecd. Note, 3.900%, 1/29/2024 | 100,302 | |
275,000 | Citigroup, Inc., Sr. Unsecd. Note, 2.561%, 5/1/2032 | 276,373 |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS— continued | |||
Financial Institution - Banking— continued | |||
$ 165,000 | Citigroup, Inc., Sr. Unsecd. Note, 2.976%, 11/5/2030 | $171,666 | |
270,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.400%, 5/1/2026 | 290,617 | |
270,000 | Citizens Financial Group, Inc., Sub. Note, 2.638%, 9/30/2032 | 270,656 | |
200,000 | Compass Bank, Birmingham, Sub. Note, Series BKNT, 3.875%, 4/10/2025 | 215,695 | |
100,000 | Fifth Third Bancorp, Sr. Unsecd. Note, 3.950%, 3/14/2028 | 111,183 | |
55,000 | FNB Corp. (PA), Sr. Unsecd. Note, 2.200%, 2/24/2023 | 55,662 | |
200,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 2.615%, 4/22/2032 | 200,528 | |
350,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.814%, 4/23/2029 | 381,566 | |
200,000 | HSBC Holdings PLC, Sr. Unsecd. Note, 3.262%, 3/13/2023 | 201,419 | |
55,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 0.824%, 6/1/2025 | 54,360 | |
170,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 1.953%, 2/4/2032 | 163,089 | |
525,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 2.580%, 4/22/2032 | 529,739 | |
90,000 | Morgan Stanley, Sr. Unsecd. Note, 1.593%, 5/4/2027 | 89,033 | |
250,000 | Morgan Stanley, Sr. Unsecd. Note, 3.625%, 1/20/2027 | 270,786 | |
200,000 | Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 2.239%, 7/21/2032 | 196,145 | |
100,000 | Morgan Stanley, Sr. Unsecd. Note, Series MTN, 1.928%, 4/28/2032 | 95,611 | |
95,875 | 1 | Regional Diversified Funding, 144A, 9.250%, 3/15/2030 | 40,268 |
200,000 | Truist Bank, Sub. Note, Series BKNT, 3.300%, 5/15/2026 | 213,567 | |
100,000 | US Bancorp, Sr. Unsecd. Note, Series MTN, 1.375%, 7/22/2030 | 94,480 | |
475,000 | Wells Fargo & Co., Sr. Unsecd. Note, 3.000%, 10/23/2026 | 500,196 | |
275,000 | Wells Fargo & Co., Sr. Unsecd. Note, Series MTN, 2.879%, 10/30/2030 | 285,496 | |
TOTAL | 6,185,811 | ||
Financial Institution - Broker/Asset Mgr/Exchange— 0.0% | |||
70,000 | Jefferies Group LLC, Sr. Unsecd. Note, 2.750%, 10/15/2032 | 69,846 | |
Financial Institution - Finance Companies— 0.1% | |||
250,000 | AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 3.400%, 10/29/2033 | 251,909 | |
230,000 | GE Capital International Funding, Inc., Sr. Unsecd. Note, 4.418%, 11/15/2035 | 278,252 | |
TOTAL | 530,161 | ||
Financial Institution - Insurance - Life— 0.1% | |||
200,000 | American International Group, Inc., Sr. Unsecd. Note, 4.125%, 2/15/2024 | 213,142 | |
75,000 | American International Group, Inc., Unsecd. Note, 3.875%, 1/15/2035 | 83,903 | |
150,000 | Massachusetts Mutual Life Insurance Co., Sub. Note, 144A, 4.900%, 4/1/2077 | 200,994 | |
180,000 | Pacific Life Insurance Co., Sub. Note, 144A, 4.300%, 10/24/2067 | 213,950 |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS— continued | |||
Financial Institution - Insurance - Life— continued | |||
$ 50,000 | Principal Financial Group, Inc., Sr. Unsecd. Note, 2.125%, 6/15/2030 | $49,794 | |
TOTAL | 761,783 | ||
Financial Institution - Insurance - P&C— 0.0% | |||
45,000 | Liberty Mutual Group, Inc., Sr. Unsecd. Note, 144A, 4.250%, 6/15/2023 | 47,232 | |
Financial Institution - REIT - Apartment— 0.0% | |||
195,000 | Avalonbay Communities, Inc., Sr. Unsecd. Note, Series MTN, 3.350%, 5/15/2027 | 211,148 | |
50,000 | Camden Property Trust, Sr. Unsecd. Note, 2.800%, 5/15/2030 | 52,599 | |
165,000 | UDR, Inc., Sr. Unsecd. Note, 3.100%, 11/1/2034 | 172,928 | |
TOTAL | 436,675 | ||
Financial Institution - REIT - Healthcare— 0.5% | |||
160,000 | Physicians Realty Trust, Sr. Unsecd. Note, 4.300%, 3/15/2027 | 178,685 | |
115,000 | Welltower, Inc., Sr. Unsecd. Note, 2.750%, 1/15/2031 | 118,476 | |
5,000,000 | Welltower, Inc., Sr. Unsecd. Note, 2.750%, 1/15/2032 | 5,050,557 | |
TOTAL | 5,347,718 | ||
Financial Institution - REIT - Office— 0.0% | |||
90,000 | Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 3.950%, 1/15/2027 | 98,300 | |
110,000 | Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 3.950%, 1/15/2028 | 122,547 | |
210,000 | Boston Properties LP, Sr. Unsecd. Note, 4.500%, 12/1/2028 | 239,084 | |
40,000 | Piedmont Operating Partnership, LP, Sr. Unsecd. Note, 2.750%, 4/1/2032 | 39,563 | |
TOTAL | 499,494 | ||
Financial Institution - REIT - Other— 0.0% | |||
40,000 | WP Carey, Inc., Sr. Unsecd. Note, 4.250%, 10/1/2026 | 44,148 | |
135,000 | WP Carey, Inc., Sr. Unsecd. Note, 4.600%, 4/1/2024 | 144,138 | |
TOTAL | 188,286 | ||
Financial Institution - REIT - Retail— 0.0% | |||
120,000 | Regency Centers LP, Sr. Unsecd. Note, 4.125%, 3/15/2028 | 133,858 | |
Health Insurance— 0.4% | |||
5,225,000 | Centene Corp., Sr. Unsecd. Note, 2.625%, 8/1/2031 | 5,046,749 | |
Technology— 0.2% | |||
50,000 | Apple, Inc., Sr. Unsecd. Note, 3.000%, 11/13/2027 | 53,447 | |
100,000 | Apple, Inc., Sr. Unsecd. Note, 4.450%, 5/6/2044 | 129,671 | |
72,000 | Broadcom, Inc., Sr. Unsecd. Note, 4.150%, 11/15/2030 | 78,787 | |
3,000 | Broadcom, Inc., Sr. Unsecd. Note, 144A, 3.187%, 11/15/2036 | 2,957 | |
90,000 | Broadcom, Inc., Sr. Unsecd. Note, 144A, 3.419%, 4/15/2033 | 92,821 | |
55,000 | Broadcom, Inc., Sr. Unsecd. Note, 144A, 3.750%, 2/15/2051 | 57,317 |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS— continued | |||
Technology— continued | |||
$ 130,000 | CDW LLC / CDW Finance, Sr. Unsecd. Note, 2.670%, 12/1/2026 | $131,058 | |
50,000 | Dell International LLC / EMC Corp., 6.020%, 6/15/2026 | 58,242 | |
85,000 | Equifax, Inc., Sr. Unsecd. Note, 2.600%, 12/1/2024 | 88,185 | |
200,000 | Experian Finance PLC., Sr. Unsecd. Note, 144A, 4.250%, 2/1/2029 | 224,422 | |
110,000 | Fiserv, Inc., Sr. Unsecd. Note, 3.500%, 7/1/2029 | 117,345 | |
65,000 | Keysight Technologies, Inc., Sr. Unsecd. Note, 3.000%, 10/30/2029 | 68,732 | |
125,000 | Lam Research Corp., Sr. Unsecd. Note, 4.000%, 3/15/2029 | 140,681 | |
105,000 | Micron Technology, Inc., Sr. Unsecd. Note, 3.366%, 11/1/2041 | 105,932 | |
30,000 | Micron Technology, Inc., Sr. Unsecd. Note, 4.185%, 2/15/2027 | 32,884 | |
150,000 | Microsoft Corp., Sr. Unsecd. Note, 3.300%, 2/6/2027 | 162,748 | |
200,000 | Oracle Corp., Sr. Unsecd. Note, 3.250%, 11/15/2027 | 211,644 | |
150,000 | Oracle Corp., Sr. Unsecd. Note, 3.650%, 3/25/2041 | 156,395 | |
25,000 | Skyworks Solutions, Inc., Sr. Unsecd. Note, 1.800%, 6/1/2026 | 24,995 | |
80,000 | Total System Services, Inc., Sr. Unsecd. Note, 4.800%, 4/1/2026 | 88,813 | |
45,000 | VMware, Inc., Sr. Unsecd. Note, 1.400%, 8/15/2026 | 43,997 | |
45,000 | VMware, Inc., Sr. Unsecd. Note, 2.200%, 8/15/2031 | 43,857 | |
65,000 | Vontier Corp., Sr. Unsecd. Note, 144A, 1.800%, 4/1/2026 | 63,863 | |
25,000 | Vontier Corp., Sr. Unsecd. Note, 144A, 2.950%, 4/1/2031 | 24,735 | |
TOTAL | 2,203,528 | ||
Technology Services— 0.3% | |||
3,175,000 | Global Payments, Inc., Sr. Unsecd. Note, 2.150%, 1/15/2027 | 3,176,364 | |
45,000 | Verisign, Inc., Sr. Unsecd. Note, 2.700%, 6/15/2031 | 45,484 | |
TOTAL | 3,221,848 | ||
Transportation - Airlines— 0.0% | |||
70,000 | Southwest Airlines Co., Sr. Unsecd. Note, 4.750%, 5/4/2023 | 73,502 | |
70,000 | Southwest Airlines Co., Sr. Unsecd. Note, 5.250%, 5/4/2025 | 77,824 | |
TOTAL | 151,326 | ||
Transportation - Railroads— 0.0% | |||
90,000 | Canadian Pacific Railway Co., Sr. Unsecd. Note, 1.750%, 12/2/2026 | 90,104 | |
65,000 | Union Pacific Corp., Sr. Unsecd. Note, 2.400%, 2/5/2030 | 66,644 | |
TOTAL | 156,748 | ||
Transportation - Services— 0.3% | |||
80,000 | Enterprise Rent-A-Car USA Finance Co., Sr. Unsecd. Note, 144A, 3.300%, 12/1/2026 | 85,469 | |
130,000 | FedEx Corp., Sr. Unsecd. Note, 4.050%, 2/15/2048 | 148,111 | |
140,000 | GXO Logistics, Inc., Sr. Unsecd. Note, 144A, 2.650%, 7/15/2031 | 138,470 | |
75,000 | Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 3.400%, 11/15/2026 | 79,786 | |
200,000 | Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 3.950%, 3/10/2025 | 214,349 |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS— continued | |||
Transportation - Services— continued | |||
$ 2,310,000 | Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 1.750%, 9/1/2026 | $2,292,063 | |
TOTAL | 2,958,248 | ||
Utility - Electric— 0.2% | |||
65,000 | Ameren Corp., Sr. Unsecd. Note, 1.950%, 3/15/2027 | 64,993 | |
50,000 | Black Hills Corp., Sr. Unsecd. Note, 2.500%, 6/15/2030 | 49,851 | |
25,000 | Black Hills Corp., Sr. Unsecd. Note, 3.875%, 10/15/2049 | 28,006 | |
175,000 | CenterPoint Energy, Inc., Sr. Unsecd. Note, 2.650%, 6/1/2031 | 176,877 | |
110,000 | Dominion Energy, Inc., Sr. Unsecd. Note, Series A, 1.450%, 4/15/2026 | 108,793 | |
200,000 | Duke Energy Corp., Sr. Unsecd. Note, 2.450%, 6/1/2030 | 198,656 | |
80,000 | Duke Energy Corp., Sr. Unsecd. Note, 3.950%, 8/15/2047 | 89,255 | |
40,000 | FirstEnergy Transmission LLC, Sr. Unsecd. Note, 144A, 4.550%, 4/1/2049 | 46,862 | |
140,000 | Kansas City Power and Light Co., Sr. Unsecd. Note, 4.200%, 3/15/2048 | 172,060 | |
30,000 | National Rural Utilities Cooperative Finance Corp., Sr. Unsecd. Note, 1.000%, 6/15/2026 | 29,326 | |
110,000 | National Rural Utilities Cooperative Finance Corp., Sr. Unsecd. Note, 2.950%, 2/7/2024 | 114,121 | |
155,000 | NextEra Energy Capital Holdings, Inc., Sr. Unsecd. Note, 3.150%, 4/1/2024 | 161,963 | |
45,000 | NiSource Finance Corp., Sr. Unsecd. Note, 3.490%, 5/15/2027 | 48,306 | |
65,000 | NiSource Finance Corp., Sr. Unsecd. Note, 4.375%, 5/15/2047 | 78,392 | |
55,000 | Puget Energy, Inc., Sec. Fac. Bond, 2.379%, 6/15/2028 | 54,524 | |
185,000 | Southern Co., Jr. Sub. Note, Series B, 4.000%, 1/15/2051 | 188,469 | |
185,000 | Virginia Electric & Power Co., Sr. Unsecd. Note, Series A, 3.500%, 3/15/2027 | 199,490 | |
TOTAL | 1,809,944 | ||
Utility - Natural Gas— 0.0% | |||
65,000 | Eastern Energy Gas Holdings, Sr. Unsecd. Note, Series C, 144A, 3.900%, 11/15/2049 | 73,090 | |
30,000 | National Fuel Gas Co., Sr. Unsecd. Note, 2.950%, 3/1/2031 | 30,402 | |
100,000 | National Fuel Gas Co., Sr. Unsecd. Note, 5.500%, 1/15/2026 | 113,384 | |
180,000 | Southern Natural Gas, Sr. Unsecd. Note, 144A, 4.800%, 3/15/2047 | 221,147 | |
TOTAL | 438,023 | ||
TOTAL CORPORATE BONDS (IDENTIFIED COST $54,463,607) | 56,019,268 | ||
COMMON STOCKS— 3.5% | |||
Auto Components— 0.2% | |||
79,103 | 2 | American Axle & Manufacturing Holdings, Inc. | 700,853 |
40,306 | 2 | Goodyear Tire & Rubber Co. | 810,554 |
Principal Amount, Shares or Contracts | Value | ||
COMMON STOCKS— continued | |||
Auto Components— continued | |||
4,460 | Lear Corp. | $748,343 | |
TOTAL | 2,259,750 | ||
Chemicals— 0.1% | |||
45,685 | 2 | Koppers Holdings, Inc. | 1,379,687 |
Commercial Services & Supplies— 0.2% | |||
21,640 | Brinks Co. (The) | 1,323,502 | |
91,920 | 2 | KAR Auction Services, Inc. | 1,377,881 |
TOTAL | 2,701,383 | ||
Communications Equipment— 0.1% | |||
19,245 | 2 | Lumentum Holdings, Inc. | 1,669,889 |
Containers & Packaging— 0.4% | |||
84,698 | Graphic Packaging Holding Co. | 1,671,939 | |
101,376 | 2 | O-I Glass, Inc. | 1,122,232 |
30,438 | WestRock Co. | 1,320,705 | |
TOTAL | 4,114,876 | ||
Electric Utilities— 0.1% | |||
31,810 | NRG Energy, Inc. | 1,145,796 | |
Food & Staples Retailing— 0.1% | |||
39,600 | 2 | US Foods Holding Corp. | 1,244,232 |
Gas Utilities— 0.1% | |||
79,921 | Suburban Propane Partners LP | 1,154,059 | |
Hotels Restaurants & Leisure— 0.2% | |||
13,695 | 2 | Boyd Gaming Corp. | 802,664 |
30,905 | 2 | Red Rock Resorts, Inc. | 1,469,224 |
TOTAL | 2,271,888 | ||
Independent Power Producers & Energy Traders— 0.1% | |||
56,195 | Vistra Corp. | 1,117,156 | |
IT Services— 0.1% | |||
17,180 | Science Applications International Corp. | 1,441,230 | |
Media— 0.8% | |||
65,950 | 2 | Altice USA, Inc. | 1,044,648 |
169,225 | 2 | Audacy, Inc. | 417,986 |
253,511 | 2 | Cumulus Media, Inc. | 3,085,229 |
81,045 | 2 | iHeartMedia, Inc. | 1,589,292 |
216,320 | 2 | Stagwell, Inc. | 1,669,990 |
124,995 | 2 | Townsquare Media, Inc. | 1,581,187 |
156,407 | 2 | Urban One, Inc. | 525,528 |
TOTAL | 9,913,860 |
Principal Amount, Shares or Contracts | Value | ||
COMMON STOCKS— continued | |||
Metals & Mining— 0.2% | |||
12,735 | Compass Minerals International, Inc. | $619,558 | |
64,525 | Teck Resources Ltd. | 1,709,267 | |
TOTAL | 2,328,825 | ||
Oil Gas & Consumable Fuels— 0.4% | |||
31,869 | Devon Energy Corp. | 1,340,410 | |
25,450 | Enviva Partners LP/Enviva Partners Finance Corp. | 1,782,263 | |
6,261 | Pioneer Natural Resources, Inc. | 1,116,462 | |
TOTAL | 4,239,135 | ||
Pharmaceuticals— 0.1% | |||
61,370 | 2 | Bausch Health Cos, Inc. | 1,463,061 |
Technology Hardware Storage & Peripherals— 0.2% | |||
11,290 | 2 | Dell Technologies, Inc. | 637,546 |
151,660 | 2 | Diebold Nixdorf, Inc. | 1,229,963 |
TOTAL | 1,867,509 | ||
Trading Companies & Distributors— 0.1% | |||
25,835 | 2 | GMS, Inc. | 1,443,401 |
TOTAL COMMON STOCKS (IDENTIFIED COST $45,408,775) | 41,755,737 | ||
COLLATERALIZED MORTGAGE OBLIGATIONS— 0.6% | |||
Commercial Mortgage— 0.5% | |||
$ 810,000 | Bank 2018-BN12, Class A4, 4.255%, 5/15/2061 | 916,323 | |
500,000 | 3 | Bank 2018-BN15, Class A4, 4.407% (12-month USLIBOR +0.000%), 11/15/2061 | 572,958 |
675,000 | Benchmark Mortgage Trust 2019-B11, Class A5, 3.542%, 5/15/2052 | 742,125 | |
520,000 | Benchmark Mortgage Trust 2021-B26, Class A2, 1.957%, 6/15/2054 | 526,841 | |
1,000,000 | Commercial Mortgage Trust 2015-DC1, Class AM, 3.724%, 2/10/2048 | 1,048,827 �� | |
1,000,000 | Fontainebleau Miami Beach Trust, Class B, 3.447%, 12/10/2036 | 1,025,472 | |
1,000,000 | Morgan Stanley Capital I 2012-C4, Class AS, 3.773%, 3/15/2045 | 1,002,987 | |
TOTAL | 5,835,533 | ||
Federal Home Loan Mortgage Corporation REMIC— 0.1% | |||
800,000 | FHLMC REMIC, Series K070, Class A2, 3.303%, 11/25/2027 | 879,652 | |
692,512 | FHLMC REMIC, Series K105, Class A1, 1.536%, 3/25/2053 | 689,309 | |
TOTAL | 1,568,961 | ||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $7,145,766) | 7,404,494 | ||
ASSET-BACKED SECURITIES— 0.4% | |||
Student Loans— 0.4% | |||
2,000,000 | Navient Student Loan Trust 2021-GA, Class A, 1.580%, 4/15/2070 | 2,006,145 |
Principal Amount, Shares or Contracts | Value | ||
ASSET-BACKED SECURITIES— continued | |||
Student Loans— continued | |||
$ 2,500,000 | SMB Private Education Loan Trust 2021-E, Class A1A, 1.680%, 2/15/2051 | $2,496,909 | |
TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $4,496,879) | 4,503,054 | ||
COMMERCIAL MORTGAGE-BACKED SECURITY— 0.1% | |||
Agency Commercial Mortgage-Backed Securities— 0.1% | |||
1,000,000 | FREMF Mortgage Trust 2013-K25 REMIC, Class B, 3.745%, 11/25/2045 (IDENTIFIED COST $1,004,153) | 1,022,997 | |
PREFERRED STOCK— 0.0% | |||
Financials— 0.0% | |||
40,000 | 1,2,4 | Lehman Brothers Holdings, Inc., Pfd., 5.670% (IDENTIFIED COST $3,400) | 400 |
PURCHASED CALL OPTIONS— 0.4% | |||
15,000,000 | 2 | BARCLAYS AUD CALL/USD PUT (CALL-Option), Notional Amount $15,000,000.000, Exercise Price $0.72, Expiration Date 1/18/2022 | 118,350 |
20,000,000 | 2 | BARCLAYS AUD CALL/USD PUT (CALL-Option), Notional Amount $20,000,000.000, Exercise Price $0.75, Expiration Date 1/18/2022 | 13,980 |
13,550,000 | 2 | BARCLAYS GBP CALL/USD PUT (CALL-Option), Notional Amount $13,550,000.00, Exercise Price $1.355, Expiration Date 1/21/2022 | 55,677 |
11,625,000 | 2 | BNP EUR CALL/USD PUT (CALL-Option), Notional Amount $11,625,000.000, Exercise Price $1.1625, Expiration Date 12/31/2021 | 17,287 |
17,100,000 | 2 | BNP EUR CALL/USD PUT (CALL-Option), Notional Amount $17,100,000.000, Exercise Price $1.14, Expiration Date 2/16/2022 | 186,766 |
7,500 | 2 | CBOE SPX Volatility Index (CALL-Option), Notional Amount $20,003,475, Exercise Price $40, Expiration Date 2/16/2022 | 2,043,750 |
5,000 | 2,5 | iShares iBoxx High Yield Corporate Bond ETF (CALL-Option), Notional Amount $42,820,000, Exercise Price $87, Expiration Date12/17/2021 | 15,000 |
400 | 2 | Russell 2000 Index (CALL-Option), Notional Amount $5200, Exercise Price $2,300, Expiration Date1/21/2022 | 2,004,000 |
TOTAL PURCHASED CALL OPTIONS (IDENTIFIED COST $3,950,603) | 4,454,810 | ||
PURCHASED PUT OPTIONS— 0.3% | |||
20,000,000 | Barclays USD PUT/RUB CALL (PUT-Option), Notional Amount $20,000,000.00, Exercise Price $69, Expiration Date 1/26/2022 | 34,380 | |
15,000,000 | 2 | Morgan Stanley USD PUT/CAD CALL (PUT-Option), Notional Amount $15,000,000.000, Exercise Price $1.245, Expiration Date 12/14/2021 | 2,655 |
500 | 2 | Russell 2000 Index (PUT-Option), Notional Amount $109,865,000 Exercise Price $2,200.00, Expiration Date 12/17/2021 | 3,032,500 |
Principal Amount, Shares or Contracts | Value | ||
PURCHASED PUT OPTIONS— continued | |||
1,500 | United States Treasury Note 10 Year Futures, Notional Amount $870,000, Exercise Price, $129, Expiration Date12/24/2021 | $210,937 | |
TOTAL PURCHASED PUT OPTIONS (IDENTIFIED COST $2,635,591) | 3,280,472 | ||
INVESTMENT COMPANIES— 82.9% | |||
6,334,587 | Bank Loan Core Fund | 60,812,038 | |
27,616,783 | Emerging Markets Core Fund | 265,673,450 | |
17,374,500 | Federated Hermes Government Obligations Fund, Premier Shares, 0.03%6 | 17,374,500 | |
23,427,969 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.04%6 | 23,430,312 | |
74,722,387 | High Yield Bond Core Fund | 466,267,692 | |
15,071,338 | Mortgage Core Fund | 147,548,396 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $1,003,530,948) | 981,106,388 | ||
TOTAL INVESTMENT IN SECURITIES—98.1% (IDENTIFIED COST $1,183,355,003)7 | 1,160,279,332 | ||
OTHER ASSETS AND LIABILITIES - NET—1.9%8 | 22,710,161 | ||
TOTAL NET ASSETS—100% | $1,182,989,493 |
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized Appreciation (Depreciation) |
Long Futures: | ||||
2United States Treasury Notes 10-Year Long Futures | 15 | $2,203,359 | March 2022 | $32,066 |
2United States Treasury Ultra Bond Long Futures | 5 | $1,002,813 | March 2022 | $26,036 |
Short Futures: | ||||
2United States Treasury Notes 10-Year Short Futures | 95 | $12,427,188 | March 2022 | $(124,159) |
NET UNREALIZED DEPRECIATION ON FUTURES CONTRACTS | $(66,057) |
Counterparty | Description | Number of Contracts | Notional Amount | Expiration Date | Exercise Price | Value |
Call Options: | ||||||
Morgan Stanley | AUD CALL/USD PUT | (35,000,000) | $35,000,000 | January 2022 | $0.74 | $(53,900) |
Morgan Stanley | USD CALL/CAD PUT | (15,000,000) | $15,000,000 | December 2021 | $1.28 | $(104,655) |
Morgan Stanley | USD CALL/CLP PUT | (10,000,000) | $81,850 | December 2021 | $810.00 | $(234,600) |
Morgan Stanley | USD CALL/NOK PUT | (15,000,000) | $486,630 | February 2022 | $8.75 | $(636,480) |
Morgan Stanley | USD CALL/ZAR PUT | (15,000,000) | $287,895 | January 2022 | $15.75 | $(439,095) |
JP Morgan | Chicago Board Options Exchange SPX Volatility Index (3,750.000 Contracts) | (3,750) | $9,632,662 | December 2021 | $28.00 | $(1,181,250) |
JP Morgan | United States Treasury Ultra Bond (300 Contracts) | (300) | $174,000 | December 2021 | $162.00 | $(520,313) |
Credit Lyonnais Securities | USD CALL/MXN PUT | (15,000,000) | $246,015 | December 2021 | $21.00 | $(498,015) |
Capital Securities Corp. | EUR CALL/USD PUT | (25,987,500) | $25,987,500 | December 2021 | $1.16 | $(64,709) |
Barclays | USD CALL/RUB PUT | (20,000,000) | $519,080 | January 2022 | $73.00 | $(749,680) |
Bank of America N.A. | iShares iBoxx High Yield Corporate Bond ETF (15,000.000 Contracts) | (15,000) | $128,460,000 | January 2022 | $87.00 | $(206,262) |
Put Options: | ||||||
Bank of America N.A. | iShares iBoxx High Yield Corporate Bond ETF (15,000 Contracts) | (15,000) | $870,000 | January 2022 | $84.00 | $(1,247,599) |
Barclays | AUD PUT/USD CALL | (20,000,000) | $127,180 | January 2022 | $0.71 | $(239,460) |
Barclays | GBP PUT/USD CALL | (40,125,000) | $209,172 | January 2022 | $1.34 | $(545,620) |
Capital Securities Corp. | EUR PUT/USD CALL | (11,400,000) | $11,400,000 | December 2021 | $1.11 | $(24,966) |
Credit Lyonnais Securities | USD PUT/MXN CALL | (15,000,000) | $15,000,000 | December 2021 | $19.75 | $(2,550) |
JP Morgan | Russell 2000 Index (500 Contracts) | (500) | $109,865,000 | December 2021 | $2,300.00 | $(5,775,000) |
Morgan Stanley | USD PUT/CLP CALL | (10,000,000) | $10,000,000 | December 2021 | $760.00 | $(10) |
Morgan Stanley | USD PUT/NOK CALL | (15,000,000) | $15,000,000 | February 2022 | $8.25 | $(13,995) |
Morgan Stanley | USD PUT/ZAR CALL | (15,000,000) | $15,000,000 | January 2022 | $14.50 | $(7,365) |
(Premium Received $5,525,991) | $(12,545,524) |
Affiliates | Value as of 11/30/2020 | Purchases at Cost | Proceeds from Sales |
Bank Loan Core Fund | $10,468,457 | $70,656,866 | $(20,000,000) |
Emerging Markets Core Fund | $176,445,209 | $142,456,800 | $(36,000,000) |
Federated Hermes Government Obligations Fund, Premier Shares* | $— | $110,990,490 | $(93,615,990) |
Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | $10,983,731 | $637,036,692 | $(624,590,815) |
High Yield Bond Core Fund | $269,156,193 | $213,575,000 | $(12,000,000) |
Mortgage Core Fund | $76,085,404 | $119,400,000 | $(44,725,250) |
TOTAL OF AFFILIATED TRANSACTIONS | $543,138,994 | $1,294,115,848 | $(830,932,055) |
Change in Unrealized Appreciation/ Depreciation | Net Realized Gain/ (Loss) | Value as of 11/30/2021 | Shares Held as of 11/30/2021 | Dividend Income |
$(693,361) | $380,076 | $60,812,038 | 6,334,587 | $1,876,886 |
$(19,533,978) | $2,305,419 | $265,673,450 | 27,616,783 | $13,498,737 |
$— | $— | $17,374,500 | 17,374,500 | $168 |
$(3,766) | $4,470 | $23,430,312 | 23,427,969 | $8,614 |
$(4,764,717) | $301,216 | $466,267,692 | 74,722,387 | $19,373,534 |
$(3,203,672) | $(8,086) | $147,548,396 | 15,071,338 | $2,642,815 |
$(28,199,494) | $2,983,095 | $981,106,388 | 164,547,564 | $37,400,754 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions. |
1 | 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 Directors (the “Directors”). |
2 | Non-income-producing security. |
3 | Floating/variable note with current rate and current maturity or next reset date shown. |
4 | Issuer in default. |
5 | All or a portion of this security is temporarily on loan to unaffiliated broker/dealers. |
6 | 7-day net yield. |
7 | The cost of investments for federal tax purposes amounts to $1,189,069,715. |
8 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
The following is a summary of the inputs used, as of November 30, 2021, in valuing the Fund’s assets carried at fair value:
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
U.S. Treasuries | $— | $60,731,712 | $— | $60,731,712 |
Corporate Bonds | — | 55,979,000 | 40,268 | 56,019,268 |
Collateralized Mortgage Obligations | — | 7,404,494 | — | 7,404,494 |
Asset-Backed Securities | — | 4,503,054 | — | 4,503,054 |
Commercial Mortgage-Backed Security | — | 1,022,997 | — | 1,022,997 |
Purchased Call Options | 4,062,750 | 392,060 | — | 4,454,810 |
Purchased Put Options | 3,243,437 | 37,035 | — | 3,280,472 |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | 38,583,409 | — | — | 38,583,409 |
International | 3,172,328 | — | — | 3,172,328 |
Preferred Stock | ||||
Domestic | — | — | 400 | 400 |
Investment Companies | 981,106,388 | — | — | 981,106,388 |
TOTAL SECURITIES | $1,030,168,312 | $130,070,352 | $40,668 | $1,160,279,332 |
Other Financial Instruments: | ||||
Assets | ||||
Futures Contracts | $58,102 | $— | $— | $58,102 |
Liabilities | ||||
Futures Contracts | (124,159) | — | — | (124,159) |
Written Options Contracts | (8,930,424) | (3,615,100) | — | (12,545,524) |
TOTAL OTHER FINANCIAL INSTRUMENTS | $(8,996,481) | $(3,615,100) | $— | $(12,611,581) |
The following acronym(s) are used throughout this portfolio: | ||
AUD | —Australian Dollar | |
BKNT | —Bank Notes | |
CAD | —Canadian Dollar | |
CLP | —Chilean Peso | |
ETF | —Exchange-Traded Fund | |
FREMF | —Freddie Mac Multifamily K-Deals | |
GMTN | —Global Medium Term Note | |
LIBOR | —London Interbank Offered Rate | |
MTN | —Medium Term Note | |
MXN | —Mexican Peso | |
NOK | —Norwegian Krone | |
REIT | —Real Estate Investment Trust | |
REMIC | —Real Estate Mortgage Investment Conduit | |
RUB | —Russian Ruble | |
USD | —United States Dollar | |
ZAR | —South African Rand |
Year Ended November 30, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $9.29 | $9.09 | $8.60 | $9.08 | $8.86 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.34 | 0.32 | 0.36 | 0.37 | 0.36 |
Net realized and unrealized gain (loss) | 0.01 | 0.17 | 0.47 | (0.51) | 0.24 |
Total From Investment Operations | 0.35 | 0.49 | 0.83 | (0.14) | 0.60 |
Less Distributions: | |||||
Distributions from net investment income | (0.34) | (0.29) | (0.34) | (0.34) | (0.38) |
Net Asset Value, End of Period | $9.30 | $9.29 | $9.09 | $8.60 | $9.08 |
Total Return2 | 3.74% | 5.56% | 9.87% | (1.56)% | 6.85% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.93% | 0.93% | 0.94% | 0.93% | 0.96% |
Net investment income | 3.61% | 3.55% | 3.99% | 4.18% | 3.99% |
Expense waiver/reimbursement4 | 0.10% | 0.13% | 0.12% | 0.13% | 0.12% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $297,673 | $292,259 | $307,049 | $307,761 | $342,586 |
Portfolio turnover5 | 50% | 70% | 58% | 48% | 18% |
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 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended November 30, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $9.27 | $9.08 | $8.58 | $9.07 | $8.85 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.28 | 0.25 | 0.29 | 0.30 | 0.29 |
Net realized and unrealized gain (loss) | (0.01) | 0.16 | 0.48 | (0.52) | 0.24 |
Total From Investment Operations | 0.27 | 0.41 | 0.77 | (0.22) | 0.53 |
Less Distributions: | |||||
Distributions from net investment income | (0.26) | (0.22) | (0.27) | (0.27) | (0.31) |
Net Asset Value, End of Period | $9.28 | $9.27 | $9.08 | $8.58 | $9.07 |
Total Return2 | 2.94% | 4.62% | 9.18% | (2.43)% | 6.06% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.71% | 1.72% | 1.70% | 1.70% | 1.73% |
Net investment income | 2.91% | 2.77% | 3.27% | 3.41% | 3.23% |
Expense waiver/reimbursement4 | 0.11% | 0.12% | 0.12% | 0.13% | 0.12% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $3,890 | $8,324 | $19,567 | $28,507 | $46,640 |
Portfolio turnover5 | 50% | 70% | 58% | 48% | 18% |
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 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended November 30, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $9.28 | $9.09 | $8.59 | $9.07 | $8.85 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.27 | 0.25 | 0.29 | 0.30 | 0.29 |
Net realized and unrealized gain (loss) | 0.02 | 0.16 | 0.48 | (0.50) | 0.24 |
Total From Investment Operations | 0.29 | 0.41 | 0.77 | (0.20) | 0.53 |
Less Distributions: | |||||
Distributions from net investment income | (0.27) | (0.22) | (0.27) | (0.28) | (0.31) |
Net Asset Value, End of Period | $9.30 | $9.28 | $9.09 | $8.59 | $9.07 |
Total Return2 | 3.07% | 4.65% | 9.19% | (2.30)% | 6.04% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.68% | 1.69% | 1.68% | 1.68% | 1.70% |
Net investment income | 2.90% | 2.80% | 3.28% | 3.43% | 3.25% |
Expense waiver/reimbursement4 | 0.10% | 0.12% | 0.12% | 0.14% | 0.12% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $35,536 | $45,955 | $58,296 | $76,758 | $132,528 |
Portfolio turnover5 | 50% | 70% | 58% | 48% | 18% |
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 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended November 30, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $9.22 | $9.03 | $8.54 | $9.02 | $8.81 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.34 | 0.31 | 0.35 | 0.37 | 0.36 |
Net realized and unrealized gain (loss) | 0.01 | 0.17 | 0.48 | (0.51) | 0.23 |
Total From Investment Operations | 0.35 | 0.48 | 0.83 | (0.14) | 0.59 |
Less Distributions: | |||||
Distributions from net investment income | (0.34) | (0.29) | (0.34) | (0.34) | (0.38) |
Net Asset Value, End of Period | $9.23 | $9.22 | $9.03 | $8.54 | $9.02 |
Total Return2 | 3.77% | 5.49% | 9.95% | (1.57)% | 6.79% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.93% | 0.93% | 0.94% | 0.93% | 0.96% |
Net investment income | 3.62% | 3.56% | 3.99% | 4.18% | 3.99% |
Expense waiver/reimbursement4 | 0.10% | 0.12% | 0.12% | 0.13% | 0.11% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $51,221 | $51,426 | $53,136 | $51,431 | $60,561 |
Portfolio turnover5 | 50% | 70% | 58% | 48% | 18% |
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 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended November 30, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $9.23 | $9.04 | $8.55 | $9.03 | $8.81 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.36 | 0.34 | 0.38 | 0.40 | 0.38 |
Net realized and unrealized gain (loss) | 0.02 | 0.17 | 0.48 | (0.51) | 0.25 |
Total From Investment Operations | 0.38 | 0.51 | 0.86 | (0.11) | 0.63 |
Less Distributions: | |||||
Distributions from net investment income | (0.37) | (0.32) | (0.37) | (0.37) | (0.41) |
Net Asset Value, End of Period | $9.24 | $9.23 | $9.04 | $8.55 | $9.03 |
Total Return2 | 4.09% | 5.83% | 10.28% | (1.25)% | 7.23% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.61% | 0.61% | 0.62% | 0.62% | 0.64% |
Net investment income | 3.82% | 3.87% | 4.23% | 4.49% | 4.24% |
Expense waiver/reimbursement4 | 0.15% | 0.20% | 0.19% | 0.18% | 0.17% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $783,512 | $246,898 | $275,189 | $134,398 | $136,141 |
Portfolio turnover5 | 50% | 70% | 58% | 48% | 18% |
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 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended November 30, | Period Ended 11/30/20171 | ||||
2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $9.29 | $9.10 | $8.60 | $9.09 | $8.96 |
Income From Investment Operations: | |||||
Net investment income (loss)2 | 0.37 | 0.35 | 0.38 | 0.40 | 0.31 |
Net realized and unrealized gain (loss) | 0.01 | 0.16 | 0.49 | (0.52) | 0.11 |
Total From Investment Operations | 0.38 | 0.51 | 0.87 | (0.12) | 0.42 |
Less Distributions: | |||||
Distributions from net investment income | (0.37) | (0.32) | (0.37) | (0.37) | (0.29) |
Net Asset Value, End of Period | $9.30 | $9.29 | $9.10 | $8.60 | $9.09 |
Total Return3 | 4.08% | 5.80% | 10.35% | (1.36)% | 4.73% |
Ratios to Average Net Assets: | |||||
Net expenses4 | 0.60% | 0.60% | 0.61% | 0.61% | 0.61%5 |
Net investment income | 3.88% | 3.88% | 4.30% | 4.49% | 4.03%5 |
Expense waiver/reimbursement6 | 0.10% | 0.12% | 0.12% | 0.12% | 0.12%5 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $11,157 | $5,468 | $4,390 | $3,790 | $5,251 |
Portfolio turnover7 | 50% | 70% | 58% | 48% | 18%8 |
1 | Reflects operations for the period from January 27, 2017 (date of initial investment) to November 30, 2017. |
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 ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
7 | Securities that mature are considered sales for purposes of this calculation. |
8 | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended November 30, 2017. |
November 30, 2021
Assets: | |
Investment in securities, at value including $16,956,720 of securities loaned $981,106,388 of investment in affiliated holdings* (identified cost $1,183,355,003) | $1,160,279,332 |
Cash | 288,033 |
Cash denominated in foreign currencies (identified cost $14,810) | 13,695 |
Due from broker (Note 2) | 6,855,727 |
Income receivable | 546,241 |
Income receivable from affiliated holdings | 3,940,039 |
Receivable for investments sold | 64,707,822 |
Receivable for shares sold | 1,747,771 |
Total Assets | 1,238,378,660 |
Liabilities: | |
Payable for investments purchased | 23,880,923 |
Payable for shares redeemed | 870,443 |
Written options outstanding (premium received $5,525,991), at value | 12,545,524 |
Payable for variation margin on futures contracts | 395,466 |
Payable for collateral due to broker for securities lending (Note 2) | 17,374,500 |
Income distribution payable | 80,652 |
Payable for investment adviser fee (Note 5) | 14,631 |
Payable for administrative fee (Note 5) | 2,536 |
Payable for distribution services fee (Note 5) | 24,754 |
Payable for other service fees (Notes 2 and 5) | 74,348 |
Accrued expenses (Note 5) | 125,390 |
Total Liabilities | 55,389,167 |
Net assets for 127,787,360 shares outstanding | $1,182,989,493 |
Net Assets Consist of: | |
Paid-in capital | $1,279,482,825 |
Total distributable earnings (loss) | (96,493,332) |
Total Net Assets | $1,182,989,493 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($297,673,020 ÷ 32,002,836 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized | $9.30 |
Offering price per share (100/95.50 of $9.30) | $9.74 |
Redemption proceeds per share | $9.30 |
Class B Shares: | |
Net asset value per share ($3,889,929 ÷ 418,954 shares outstanding), $0.001 par value, 2,000,000,000 shares authorized | $9.28 |
Offering price per share | $9.28 |
Redemption proceeds per share (94.50/100 of $9.28) | $8.77 |
Class C Shares: | |
Net asset value per share ($35,536,384 ÷ 3,822,961 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized | $9.30 |
Offering price per share | $9.30 |
Redemption proceeds per share (99.00/100 of $9.30) | $9.21 |
Class F Shares: | |
Net asset value per share ($51,221,081 ÷ 5,548,434 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized | $9.23 |
Offering price per share (100/99.00 of $9.23) | $9.32 |
Redemption proceeds per share (99.00/100 of $9.23) | $9.14 |
Institutional Shares: | |
Net asset value per share ($783,511,821 ÷ 84,795,106 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized | $9.24 |
Offering price per share | $9.24 |
Redemption proceeds per share | $9.24 |
Class R6 Shares: | |
Net asset value per share ($11,157,258 ÷ 1,199,069 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized | $9.30 |
Offering price per share | $9.30 |
Redemption proceeds per share | $9.30 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended November 30, 2021
Investment Income: | |
Dividends (including $37,400,558 received from affiliated holdings* and net of foreign taxes withheld of $1,088) | $38,374,469 |
Interest | 2,064,763 |
Net income on securities loaned (includes $196 received from affiliated holdings related to cash collateral balances) (Note 2) | 5,979 |
TOTAL INCOME | 40,445,211 |
Expenses: | |
Investment adviser fee (Note 5) | 4,960,074 |
Administrative fee (Note 5) | 707,837 |
Custodian fees | 49,159 |
Transfer agent fees (Note 2) | 794,150 |
Directors’/Trustees’ fees (Note 5) | 7,481 |
Auditing fees | 33,200 |
Legal fees | 10,137 |
Portfolio accounting fees | 209,771 |
Distribution services fee (Note 5) | 338,043 |
Other service fees (Notes 2 and 5) | 997,150 |
Share registration costs | 140,857 |
Printing and postage | 43,264 |
Taxes | 150 |
Miscellaneous (Note 5) | 36,024 |
TOTAL EXPENSES | 8,327,297 |
Waiver and Reimbursements: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (877,028) |
Waiver/reimbursements of other operating expenses (Notes 2 and 5) | (292,130) |
TOTAL WAIVER AND REIMBURSEMENTS | (1,169,158) |
Net expenses | 7,158,139 |
Net investment income | $33,287,072 |
Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions, Foreign Exchange Contracts, Futures Contracts, Written Options and Swap Contracts: | |
Net realized gain on investments (including net realized gain of $2,983,095 on sales of investments in affiliated holdings*) | $15,562,950 |
Net realized loss on foreign currency transactions | (4,590,433) |
Net realized loss on foreign exchange contracts | (695,436) |
Net realized gain on futures contracts | 533,716 |
Net realized gain on written options | 16,509,978 |
Net realized gain on swap contracts | 13,438 |
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $(28,199,494) on investments in affiliated holdings*) | (32,486,303) |
Net change in unrealized appreciation of translation of assets and liabilities in foreign currency | (1,186) |
Net change in unrealized appreciation of foreign exchange contracts | (123,003) |
Net change in unrealized depreciation of futures contracts | (61,815) |
Net change in unrealized appreciation of written options | (7,356,836) |
Net realized and unrealized gain (loss) on investments, foreign currency transactions, foreign exchange contracts, futures contracts, written options and swap contracts | (12,694,930) |
Change in net assets resulting from operations | $20,592,142 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended November 30 | 2021 | 2020 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $33,287,072 | $24,359,835 |
Net realized gain (loss) | 27,334,213 | (8,173,579) |
Net change in unrealized appreciation/depreciation | (40,029,143) | 10,457,275 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 20,592,142 | 26,643,531 |
Distributions to Shareholders: | ||
Class A Shares | (10,713,324) | (9,315,548) |
Class B Shares | (167,190) | (321,325) |
Class C Shares | (1,130,730) | (1,258,620) |
Class F Shares | (1,872,000) | (1,656,587) |
Institutional Shares | (18,156,976) | (9,647,933) |
Class R6 Shares | (303,149) | (168,039) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (32,343,369) | (22,368,052) |
Share Transactions: | ||
Proceeds from sale of shares | 668,970,292 | 150,084,678 |
Net asset value of shares issued to shareholders in payment of distributions declared | 31,392,160 | 21,505,497 |
Cost of shares redeemed | (155,951,371) | (243,163,912) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 544,411,081 | (71,573,737) |
Change in net assets | 532,659,854 | (67,298,258) |
Net Assets: | ||
Beginning of period | 650,329,639 | 717,627,897 |
End of period | $1,182,989,493 | $650,329,639 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $290,978 | $(2,341) |
Class B Shares | 7,210 | (433) |
Class C Shares | 37,295 | (24) |
Class F Shares | 46,002 | — |
Institutional Shares | 411,431 | (289,332) |
Class R6 Shares | 1,234 | — |
TOTAL | $794,150 | $(292,130) |
Other Service Fees Incurred | |
Class A Shares | $754,405 |
Class B Shares | 14,147 |
Class C Shares | 98,534 |
Class F Shares | 130,064 |
TOTAL | $997,150 |
Market Value of Securities Loaned | Collateral Received |
$16,956,720 | $17,374,500 |
Fair Value of Derivative Instruments | ||||
Assets | Liabilities | |||
Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||||
Interest rate contracts | $— | Payable for variation margin on futures contracts | $66,057* | |
Interest rate contracts | Purchased options, within Investment in securities, at value | 210,937 | — | |
Interest rate contracts | — | Written options outstanding, at value | 520,312 | |
Equity contracts | — | Written options outstanding, at value | 8,410,112 | |
Equity contracts | Purchased options, within Investment in securities at value | 7,095,250 | — | |
Foreign exchange contracts | — | Written options outstanding, at value | 3,615,100 | |
Foreign exchange contracts | Purchased options, within Investment in securities at value | 429,095 | — | |
Total derivatives not accounted for as hedging instruments under ASC Topic 815 | $7,735,282 | $12,611,581 |
* | Includes cumulative net depreciation 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 | ||||||
Credit Default Swaps | Futures Contracts | Foreign Exchange Contracts | Purchased Options Contracts1 | Written Options Contracts | Total | |
Interest rate contracts | $— | $617,961 | $— | $2,350,372 | $(2,535,525) | $432,808 |
Equity contracts | — | (84,245) | — | (782,131) | 9,257,574 | 8,391,198 |
Foreign exchange contracts | — | — | (695,436) | 299,595 | 9,787,929 | 9,392,088 |
Credit contracts | 13,438 | — | — | — | — | 13,438 |
TOTAL | $13,438 | $533,716 | $(695,436) | $1,867,836 | $16,509,978 | $18,229,532 |
1 | The net realized gain on Purchased Options Contracts is found within the Net realized gain on investments on the Statement of Operations. |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |||||
Futures Contracts | Foreign Exchange Contracts | Purchased Options Contracts2 | Written Options Contracts | Total | |
Interest rate contracts | $(61,815) | $— | $(766,388) | $(151,557) | $(979,760) |
Equity contracts | — | — | 1,879,009 | (5,788,114) | (3,909,105) |
Foreign exchange contracts | — | (123,003) | (345,199) | (1,417,165) | (1,885,367) |
TOTAL | $(61,815) | $(123,003) | $767,422 | $(7,356,836) | $(6,774,232) |
2 | The net change in unrealized depreciation of Purchased Options Contracts is found within the Net change in unrealized depreciation of investments on the Statement of Operations. |
Year Ended 11/30/2021 | Year Ended 11/30/2020 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 4,760,268 | $45,229,587 | 3,682,330 | $32,892,582 |
Shares issued to shareholders in payment of distributions declared | 1,052,751 | 9,971,445 | 973,658 | 8,643,882 |
Shares redeemed | (5,269,244) | (50,055,842) | (6,961,763) | (60,715,174) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 543,775 | $5,145,190 | (2,305,775) | $(19,178,710) |
Year Ended 11/30/2021 | Year Ended 11/30/2020 | |||
Class B Shares: | Shares | Amount | Shares | Amount |
Shares sold | 16,160 | $153,326 | 31,031 | $279,386 |
Shares issued to shareholders in payment of distributions declared | 15,710 | 148,336 | 33,542 | 297,389 |
Shares redeemed | (510,638) | (4,832,968) | (1,322,686) | (11,459,208) |
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS | (478,768) | $(4,531,306) | (1,258,113) | $(10,882,433) |
Year Ended 11/30/2021 | Year Ended 11/30/2020 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,176,394 | $11,177,994 | 810,356 | $7,240,043 |
Shares issued to shareholders in payment of distributions declared | 118,982 | 1,125,188 | 138,065 | 1,225,932 |
Shares redeemed | (2,422,934) | (22,985,832) | (2,413,569) | (21,419,361) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (1,127,558) | $(10,682,650) | (1,465,148) | $(12,953,386) |
Year Ended 11/30/2021 | Year Ended 11/30/2020 | |||
Class F Shares: | Shares | Amount | Shares | Amount |
Shares sold | 323,512 | $3,056,385 | 350,255 | $3,092,566 |
Shares issued to shareholders in payment of distributions declared | 194,770 | 1,830,949 | 183,231 | 1,615,285 |
Shares redeemed | (545,810) | (5,135,405) | (841,803) | (7,318,114) |
NET CHANGE RESULTING FROM CLASS F SHARE TRANSACTIONS | (27,528) | $(248,071) | (308,317) | $(2,610,263) |
Year Ended 11/30/2021 | Year Ended 11/30/2020 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 63,755,929 | $602,705,700 | 11,706,142 | $104,646,682 |
Shares issued to shareholders in payment of distributions declared | 1,912,323 | 18,018,626 | 1,085,000 | 9,555,838 |
Shares redeemed | (7,619,770) | (71,801,280) | (16,490,597) | (141,136,968) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 58,048,482 | $548,923,046 | (3,699,455) | $(26,934,448) |
Year Ended 11/30/2021 | Year Ended 11/30/2020 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 699,078 | $6,647,300 | 215,006 | $1,933,419 |
Shares issued to shareholders in payment of distributions declared | 31,392 | 297,616 | 18,827 | 167,171 |
Shares redeemed | (119,793) | (1,140,044) | (128,034) | (1,115,087) |
NET CHANGE RESULTING FROM R6 SHARE TRANSACTIONS | 610,677 | $5,804,872 | 105,799 | $985,503 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 57,569,080 | $544,411,081 | (8,931,009) | $(71,573,737) |
Increase (Decrease) | |
Paid-In Capital | Total Distributable Earnings (Loss) |
$(1,477) | $1,477 |
2021 | 2020 | |
Ordinary income | $32,343,369 | $22,368,052 |
Distributions payable | $(76,302) |
Unrealized depreciation | $(32,860,434) |
Capital loss carryforwards and deferrals | $(63,556,596) |
Short-Term | Long-Term | Total |
$— | $63,556,596 | $63,556,596 |
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 B Shares | 0.75% |
Class C Shares | 0.75% |
Class F Shares | 0.05% |
Distribution Services Fees Incurred | |
Class B Shares | $42,440 |
Class C Shares | 295,603 |
TOTAL | $338,043 |
Purchases | $720,817,019 |
Sales | $262,058,392 |
January 29, 2022
Beginning Account Value 6/1/2021 | Ending Account Value 11/30/2021 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $987.80 | $4.63 |
Class B Shares | $1,000 | $984.00 | $8.36 |
Class C Shares | $1,000 | $984.10 | $8.31 |
Class F Shares | $1,000 | $987.70 | $4.58 |
Institutional Shares | $1,000 | $990.30 | $3.09 |
Class R6 Shares | $1,000 | $989.40 | $3.04 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,020.41 | $4.71 |
Class B Shares | $1,000 | $1,016.65 | $8.49 |
Class C Shares | $1,000 | $1,016.70 | $8.44 |
Class F Shares | $1,000 | $1,020.46 | $4.66 |
Institutional Shares | $1,000 | $1,021.96 | $3.14 |
Class R6 Shares | $1,000 | $1,022.01 | $3.09 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 0.93% |
Class B Shares | 1.68% |
Class C Shares | 1.67% |
Class F Shares | 0.92% |
Institutional Shares | 0.62% |
Class R6 Shares | 0.61% |
Name Birth Date Positions Held with Corporation 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 Director Indefinite Term Began serving: January 2000 | 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 Corporation 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 Director 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. |
Name Birth Date Positions Held with Corporation 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 Director Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Director, 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 Corporation 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 Director 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.; Lead Director, Member of the Audit and Nominating and Corporate Governance Committees, 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 Director Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor Emerita 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; 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; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director, Saint Francis University. |
Name Birth Date Positions Held with Corporation Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Thomas M. O’Neill Birth Date: June 14, 1951 Director 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. 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); Director, The Golisano Children’s Museum of Naples, Florida; and Director, Midway Pacific (lumber). |
Madelyn A. Reilly Birth Date: February 2, 1956 Director Indefinite Term Began serving: November 2020 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary to the Board of Directors, Duquesne University. Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary to the Board of Directors and Assistant General Counsel and Director of Risk Management, Duquesne University. Prior to her work at Duquesne University, Ms. Reilly served as Assistant General Counsel of Compliance and Enterprise Risk as well as Senior Counsel of Environment, Health and Safety, PPG Industries. |
P. Jerome Richey Birth Date: February 23, 1949 Director 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, CONSOL Energy Inc. (now split into two separate publicly traded companies known as CONSOL Energy Inc. and CNX Resources Corp.). 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, CONSOL Energy Inc. and CNX Gas Company; and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
Name Birth Date Positions Held with Corporation 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 Director Indefinite Term Began serving: November 1999 | Principal Occupations: Director or Trustee 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 Positions Held with Corporation 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 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 Positions Held with Corporation 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: January 2005 | 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, Inc. 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. |
Robert J. Ostrowski Birth Date: April 26, 1963 Chief Investment Officer Officer since: May 2004 | Principal Occupations: Robert J. Ostrowski joined Federated Hermes, Inc. in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated Hermes’ taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund’s Adviser in 2009 and served as a Senior Vice President of the Fund’s Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University. |
Annual Evaluation of Adequacy and Effectiveness
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31417P601
CUSIP 31417P700
CUSIP 31417P809
CUSIP 31417P841
CUSIP 31417P833
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: 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 2021 – $67,230
Fiscal year ended 2020 - $65,530
(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2021 - $0
Fiscal year ended 2020 - $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.
(c) Tax Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2021 - $0
Fiscal year ended 2020 - $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 2021 - $0
Fiscal year ended 2020 - $0
Amount requiring approval of the registrant’s Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $42,488 and $41,103 respectively. Fiscal year ended 2021- Service fees for analysis of potential Passive Foreign Investment Company holdings. Fiscal year ended 2020- Service fees 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 (the “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 ( the “Adviser”)and any entity controlling, controlled by to under common control with the 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 Adviser and any entity controlling, controlled by, or under common control with the 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 Securities and Exchange Commission’s (the “SEC”) 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 registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
4(b)
Fiscal year ended 2021 – 0%
Fiscal year ended 2020 - 0%
Percentage of services provided to the registrant’s Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant’s 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 2021 – 0%
Fiscal year ended 2020 – 0%
Percentage of services provided to the registrant’s Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant’s 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 2021 – 0%
Fiscal year ended 2020 – 0%
Percentage of services provided to the registrant’s Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant’s 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 Adviser, and certain entities controlling, controlled by or under common control with the Adviser: |
Fiscal year ended 2021 - $86,486
Fiscal year ended 2020 - $102,522
(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 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. |
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 Fixed Income Securities, Inc.
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date January 29, 2022
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 January 29, 2022
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date January 29, 2022