Federated Hermes Short-Intermediate Total Return Bond Fund
Portfolio of Investments
November 30, 2023 (unaudited)
Principal Amount or Shares | Value | ||
U.S. TREASURIES—47.0% | |||
U.S. Treasury Notes—47.0% | |||
$ 17,750,000 | United States Treasury Notes, 0.375%, 1/31/2026 | $ 16,203,879 | |
30,000,000 | United States Treasury Notes, 0.625%, 7/31/2026 | 27,100,920 | |
7,500,000 | United States Treasury Notes, 0.750%, 5/31/2026 | 6,834,356 | |
12,500,000 | United States Treasury Notes, 0.750%, 8/31/2026 | 11,300,530 | |
10,000,000 | United States Treasury Notes, 0.875%, 6/30/2026 | 9,128,963 | |
20,000,000 | United States Treasury Notes, 1.875%, 2/28/2027 | 18,467,680 | |
425,000 | United States Treasury Notes, 2.625%, 4/15/2025 | 411,753 | |
31,150,000 | United States Treasury Notes, 2.750%, 4/30/2027 | 29,512,476 | |
37,500,000 | United States Treasury Notes, 3.125%, 8/31/2027 | 35,861,310 | |
3,000,000 | United States Treasury Notes, 3.500%, 9/15/2025 | 2,933,464 | |
30,000,000 | United States Treasury Notes, 3.500%, 1/31/2028 | 29,024,718 | |
12,500,000 | United States Treasury Notes, 3.875%, 11/30/2027 | 12,273,714 | |
10,000,000 | United States Treasury Notes, 4.000%, 12/15/2025 | 9,865,481 | |
10,000,000 | United States Treasury Notes, 4.000%, 6/30/2028 | 9,865,469 | |
32,000,000 | United States Treasury Notes, 4.125%, 9/30/2027 | 31,709,130 | |
25,000,000 | United States Treasury Notes, 4.250%, 9/30/2024 | 24,793,462 | |
5,000,000 | United States Treasury Notes, 4.250%, 10/15/2025 | 4,954,286 | |
20,000,000 | United States Treasury Notes, 4.375%, 8/31/2028 | 20,056,446 | |
20,000,000 | United States Treasury Notes, 4.750%, 7/31/2025 | 19,967,012 | |
130,500,000 | United States Treasury Notes, 5.000%, 8/31/2025 | 130,899,800 | |
TOTAL U.S. TREASURIES (IDENTIFIED COST $463,351,929) | 451,164,849 | ||
CORPORATE BONDS—36.3% | |||
Basic Industry - Metals & Mining—0.2% | |||
2,493,000 | Glencore Funding LLC, Sr. Unsecd. Note, 144A, 1.625%, 9/1/2025 | 2,326,157 | |
Capital Goods - Aerospace & Defense—1.4% | |||
1,705,000 | Boeing Co., Sr. Unsecd. Note, 1.950%, 2/1/2024 | 1,694,203 | |
2,000,000 | Boeing Co., Sr. Unsecd. Note, 2.196%, 2/4/2026 | 1,870,200 | |
2,750,000 | HEICO Corp., Sr. Unsecd. Note, 5.250%, 8/1/2028 | 2,744,603 | |
905,000 | Leidos, Inc., Sr. Unsecd. Note, Series WI, 3.625%, 5/15/2025 | 877,227 | |
1,500,000 | Northrop Grumman Corp., Sr. Unsecd. Note, 2.930%, 1/15/2025 | 1,458,527 | |
5,000,000 | Teledyne Technologies, Inc., Sr. Unsecd. Note, 1.600%, 4/1/2026 | 4,579,665 | |
40,000 | 1 | Textron Financial Corp., Jr. Sub. Note, 144A, 7.376% (CME Term SOFR 3 Month +1.996%), 2/15/2042 | 31,328 |
TOTAL | 13,255,753 | ||
Capital Goods - Building Materials—0.1% | |||
1,500,000 | Allegion US Holdings Co., Inc., Sr. Unsecd. Note, 3.200%, 10/1/2024 | 1,464,014 | |
Capital Goods - Construction Machinery—1.0% | |||
2,000,000 | CNH Industrial Capital America LLC, Sr. Unsecd. Note, 1.450%, 7/15/2026 | 1,811,602 | |
2,000,000 | CNH Industrial Capital America LLC, Sr. Unsecd. Note, 1.875%, 1/15/2026 | 1,856,674 | |
560,000 | Deere & Co., Sr. Unsecd. Note, 2.750%, 4/15/2025 | 542,613 | |
5,385,000 | Weir Group PLC/The, Sr. Unsecd. Note, 144A, 2.200%, 5/13/2026 | 4,941,211 | |
TOTAL | 9,152,100 | ||
Capital Goods - Diversified Manufacturing—0.7% | |||
3,410,000 | Roper Technologies, Inc., Sr. Unsecd. Note, 1.000%, 9/15/2025 | 3,154,360 | |
3,335,000 | Vontier Corp., Sr. Unsecd. Note, Series WI, 1.800%, 4/1/2026 | 3,028,474 |
1
Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Capital Goods - Diversified Manufacturing—continued | |||
$ 790,000 | Wabtec Corp., Sr. Unsecd. Note, 3.200%, 6/15/2025 | $ 758,664 | |
TOTAL | 6,941,498 | ||
Communications - Cable & Satellite—0.1% | |||
590,000 | Comcast Corp., Sr. Unsecd. Note, 5.350%, 11/15/2027 | 601,706 | |
Communications - Media & Entertainment—0.7% | |||
5,000,000 | Netflix, Inc., Sr. Unsecd. Note, 4.375%, 11/15/2026 | 4,931,027 | |
1,000,000 | Walt Disney Co., Sr. Unsecd. Note, 1.750%, 1/13/2026 | 938,424 | |
750,000 | Walt Disney Co., Sr. Unsecd. Note, Series MTN, 1.850%, 7/30/2026 | 695,237 | |
TOTAL | 6,564,688 | ||
Communications - Telecom Wireless—1.6% | |||
1,055,000 | American Tower Corp., Sr. Unsecd. Note, 2.400%, 3/15/2025 | 1,012,013 | |
1,000,000 | American Tower Corp., Sr. Unsecd. Note, 3.375%, 5/15/2024 | 988,231 | |
1,275,000 | American Tower Corp., Sr. Unsecd. Note, 5.250%, 7/15/2028 | 1,265,585 | |
2,500,000 | Bell Canada, Sr. Unsecd. Note, Series US-3, 0.750%, 3/17/2024 | 2,464,441 | |
1,000,000 | Crown Castle, Inc., Sr. Unsecd. Note, 3.200%, 9/1/2024 | 980,585 | |
2,600,000 | Crown Castle, Inc., Sr. Unsecd. Note, 4.800%, 9/1/2028 | 2,513,287 | |
3,500,000 | T-Mobile USA, Inc., Series WI, 1.500%, 2/15/2026 | 3,223,328 | |
1,000,000 | T-Mobile USA, Inc., Series WI, 3.500%, 4/15/2025 | 972,769 | |
2,000,000 | 1 | Vodafone Group PLC, Sr. Unsecd. Note, 6.645% (CME Term SOFR 3 Month +1.251%), 1/16/2024 | 2,001,609 |
TOTAL | 15,421,848 | ||
Communications - Telecom Wirelines—0.7% | |||
5,100,000 | Rogers Communications, Inc., Sr. Unsecd. Note, 3.200%, 3/15/2027 | 4,755,347 | |
2,071,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 0.850%, 11/20/2025 | 1,904,117 | |
TOTAL | 6,659,464 | ||
Consumer Cyclical - Automotive—2.3% | |||
2,510,000 | Daimler Trucks Financial NA, Sr. Unsecd. Note, 144A, 2.000%, 12/14/2026 | 2,272,617 | |
3,000,000 | Ford Motor Credit Co. LLC, Sr. Unsecd. Note, 6.950%, 3/6/2026 | 3,028,367 | |
1,395,000 | Ford Motor Credit Co. LLC, Sr. Unsecd. Note, 6.950%, 6/10/2026 | 1,411,002 | |
550,000 | General Motors Co., Sr. Unsecd. Note, 6.125%, 10/1/2025 | 552,804 | |
5,000,000 | Hyundai Capital America, Sr. Unsecd. Note, 144A, 6.000%, 7/11/2025 | 5,014,228 | |
5,175,000 | Mercedes-Benz Finance NA LLC, Sr. Unsub., 144A, 1.450%, 3/2/2026 | 4,765,376 | |
2,000,000 | 2 | Stellantis Finance US, Inc., Sr. Unsecd. Note, 144A, 5.625%, 1/12/2028 | 2,014,370 |
2,000,000 | Volkswagen Group of America Finance LLC, Sr. Unsecd. Note, 144A, 1.250%, 11/24/2025 | 1,838,489 | |
1,000,000 | Volkswagen Group of America Finance LLC, Sr. Unsecd. Note, 144A, 3.350%, 5/13/2025 | 965,081 | |
TOTAL | 21,862,334 | ||
Consumer Non-Cyclical - Food/Beverage—1.2% | |||
2,000,000 | 1 | Anheuser-Busch InBev Worldwide, Inc., Sr. Unsecd. Note, Series 5FRN, 6.427% (CME Term SOFR 3 Month +1.001%), 1/12/2024 | 1,999,660 |
3,250,000 | Bacardi Ltd., Sr. Unsecd. Note, 144A, 5.250%, 1/15/2029 | 3,189,974 | |
4,725,000 | International Flavors & Fragrances, Inc., Sr. Unsecd. Note, 144A, 1.230%, 10/1/2025 | 4,316,477 | |
1,400,000 | JDE Peet’s B.V., Sr. Unsecd. Note, 144A, 0.800%, 9/24/2024 | 1,340,792 | |
1,000,000 | McCormick & Co., Inc., Sr. Unsecd. Note, 3.150%, 8/15/2024 | 982,900 | |
TOTAL | 11,829,803 | ||
Consumer Non-Cyclical - Health Care—0.8% | |||
500,000 | CVS Health Corp., Sr. Unsecd. Note, 2.625%, 8/15/2024 | 489,251 | |
1,040,000 | CVS Health Corp., Sr. Unsecd. Note, 5.000%, 1/30/2029 | 1,034,596 | |
3,000,000 | GE Healthcare Holding LLC, Unsecd. Note, 5.650%, 11/15/2027 | 3,039,671 | |
2,215,000 | PerkinElmer, Inc., Sr. Unsecd. Note, 0.850%, 9/15/2024 | 2,130,718 | |
1,225,000 | Stryker Corp., Sr. Unsecd. Note, 0.600%, 12/1/2023 | 1,225,000 | |
TOTAL | 7,919,236 |
2
Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Consumer Non-Cyclical - Pharmaceuticals—1.3% | |||
$ 2,000,000 | AbbVie, Inc., Sr. Unsecd. Note, 3.600%, 5/14/2025 | $ 1,952,917 | |
2,500,000 | AbbVie, Inc., Sr. Unsecd. Note, 3.800%, 3/15/2025 | 2,453,165 | |
3,250,000 | Amgen, Inc., Sr. Unsecd. Note, 5.150%, 3/2/2028 | 3,258,281 | |
1,000,000 | Bayer US Finance II LLC, Sr. Unsecd. Note, 144A, 3.875%, 12/15/2023 | 999,253 | |
246,000 | Bristol-Myers Squibb Co., Sr. Unsecd. Note, Series WI, 2.900%, 7/26/2024 | 241,981 | |
1,500,000 | Merck & Co., Inc., Sr. Unsecd. Note, 0.750%, 2/24/2026 | 1,373,341 | |
2,500,000 | Pfizer Investment Enterprises Pte Ltd., Sr. Unsecd. Note, 4.450%, 5/19/2028 | 2,455,346 | |
TOTAL | 12,734,284 | ||
Consumer Non-Cyclical - Tobacco—0.8% | |||
365,000 | Altria Group, Inc., Sr. Unsecd. Note, 3.800%, 2/14/2024 | 363,032 | |
750,000 | BAT Capital Corp., Sr. Unsecd. Note, 2.789%, 9/6/2024 | 732,822 | |
1,000,000 | BAT Capital Corp., Sr. Unsecd. Note, 3.222%, 8/15/2024 | 981,342 | |
1,400,000 | BAT International Finance PLC, Sr. Unsecd. Note, 1.668%, 3/25/2026 | 1,283,796 | |
1,250,000 | BAT International Finance PLC, Sr. Unsecd. Note, 5.931%, 2/2/2029 | 1,269,783 | |
1,000,000 | Philip Morris International, Inc., Sr. Unsecd. Note, 1.500%, 5/1/2025 | 948,897 | |
2,000,000 | Philip Morris International, Inc., Sr. Unsecd. Note, 5.125%, 11/17/2027 | 2,002,873 | |
TOTAL | 7,582,545 | ||
Energy - Independent—0.6% | |||
3,000,000 | Occidental Petroleum Corp., Sr. Unsecd. Note, 6.375%, 9/1/2028 | 3,093,013 | |
2,990,000 | Ovintiv, Inc., Sr. Unsecd. Note, 5.650%, 5/15/2028 | 2,982,517 | |
TOTAL | 6,075,530 | ||
Energy - Midstream—1.2% | |||
2,070,000 | Columbia Pipeline Holding Co. LLC, Sr. Unsecd. Note, 144A, 6.042%, 8/15/2028 | 2,094,272 | |
255,000 | Eastern Energy Gas Holdings, Sr. Unsecd. Note, Series A, 2.500%, 11/15/2024 | 247,363 | |
500,000 | Energy Transfer LP, Sr. Unsecd. Note, 2.900%, 5/15/2025 | 480,933 | |
150,000 | Energy Transfer LP, Sr. Unsecd. Note, 4.900%, 2/1/2024 | 149,644 | |
910,000 | Energy Transfer LP, Sr. Unsecd. Note, 5.550%, 2/15/2028 | 914,468 | |
1,000,000 | Enterprise Products Operating LLC, 3.900%, 2/15/2024 | 996,121 | |
500,000 | Kinder Morgan Energy Partners LP, Sr. Unsecd. Note, 4.300%, 5/1/2024 | 496,199 | |
1,165,000 | MPLX LP, Sr. Unsecd. Note, 1.750%, 3/1/2026 | 1,074,629 | |
2,000,000 | ONEOK Partners LP, Sr. Unsecd. Note, 4.900%, 3/15/2025 | 1,977,494 | |
2,000,000 | Sunoco Logistics Partners LP, Sr. Unsecd. Note, 3.900%, 7/15/2026 | 1,920,539 | |
1,250,000 | Targa Resources, Inc., Sr. Unsecd. Note, 6.150%, 3/1/2029 | 1,277,652 | |
TOTAL | 11,629,314 | ||
Energy - Oil Field Services—0.3% | |||
2,500,000 | Schlumberger Investment SA, Sr. Unsecd. Note, 4.500%, 5/15/2028 | 2,473,443 | |
Energy - Refining—0.6% | |||
2,000,000 | Marathon Petroleum Corp., Sr. Unsecd. Note, 4.700%, 5/1/2025 | 1,977,133 | |
1,845,000 | Phillips 66, Sr. Unsecd. Note, 1.300%, 2/15/2026 | 1,695,510 | |
2,270,000 | Valero Energy Corp., Sr. Unsecd. Note, 2.850%, 4/15/2025 | 2,181,252 | |
TOTAL | 5,853,895 | ||
Financial Institution - Banking—8.2% | |||
1,000,000 | American Express Co., Sr. Unsecd. Note, 3.400%, 2/22/2024 | 995,089 | |
910,000 | American Express Co., Sr. Unsecd. Note, 5.850%, 11/5/2027 | 935,260 | |
1,000,000 | Associated Banc-Corp., Sub. Note, 4.250%, 1/15/2025 | 974,162 | |
2,000,000 | Bank of America Corp., Sr. Unsecd. Note, 5.080%, 1/20/2027 | 1,978,272 | |
2,000,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 0.981%, 9/25/2025 | 1,917,184 | |
2,000,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 1.197%, 10/24/2026 | 1,833,346 | |
1,000,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 1.319%, 6/19/2026 | 931,409 | |
3,500,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 2.456%, 10/22/2025 | 3,389,526 |
3
Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - Banking—continued | |||
$ 1,500,000 | Bank of America Corp., Sub. Note, Series MTN, 4.000%, 1/22/2025 | $ 1,470,816 | |
3,000,000 | Bank of New York Mellon Corp., Sr. Unsecd. Note, Series MTN, 1.600%, 4/24/2025 | 2,850,045 | |
2,000,000 | Citigroup, Inc., Sr. Unsecd. Note, 1.462%, 6/9/2027 | 1,801,455 | |
1,855,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.352%, 4/24/2025 | 1,835,030 | |
2,000,000 | Citizens Bank, N.A., Sr. Unsecd. Note, 6.064%, 10/24/2025 | 1,929,094 | |
500,000 | Citizens Bank, N.A., Sr. Unsecd. Note, Series BKNT, 2.250%, 4/28/2025 | 471,390 | |
500,000 | Fifth Third Bancorp, Sr. Unsecd. Note, 2.375%, 1/28/2025 | 480,679 | |
655,000 | Fifth Third Bancorp, Sr. Unsecd. Note, 3.650%, 1/25/2024 | 652,450 | |
570,000 | Fifth Third Bancorp, Sr. Unsecd. Note, 6.339%, 7/27/2029 | 575,769 | |
2,000,000 | Fifth Third Bancorp, Sr. Unsecd. Note, 6.361%, 10/27/2028 | 2,013,224 | |
1,990,000 | FNB Corp. (PA), Sr. Unsecd. Note, 5.150%, 8/25/2025 | 1,932,179 | |
500,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.272%, 9/29/2025 | 489,029 | |
2,000,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.500%, 1/23/2025 | 1,950,805 | |
1,000,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.500%, 11/16/2026 | 954,372 | |
2,010,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 5.700%, 11/1/2024 | 2,009,295 | |
775,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, Series VAR, 1.093%, 12/9/2026 | 704,394 | |
1,000,000 | Huntington Bancshares, Inc., Sr. Unsecd. Note, 2.625%, 8/6/2024 | 974,629 | |
2,000,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 1.045%, 11/19/2026 | 1,828,183 | |
3,000,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 2.005%, 3/13/2026 | 2,858,528 | |
2,000,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 3.125%, 1/23/2025 | 1,949,442 | |
1,275,000 | M&T Bank Corp., Sr. Unsecd. Note, 7.413%, 10/30/2029 | 1,329,885 | |
3,000,000 | Manufacturers & Traders Trust Co., Sr. Unsecd. Note, 4.700%, 1/27/2028 | 2,819,443 | |
5,500,000 | Morgan Stanley, Sr. Unsecd. Note, 0.985%, 12/10/2026 | 4,985,681 | |
640,000 | Morgan Stanley, Sr. Unsecd. Note, 5.050%, 1/28/2027 | 634,161 | |
2,000,000 | Morgan Stanley, Sr. Unsecd. Note, Series I, 0.864%, 10/21/2025 | 1,905,323 | |
2,000,000 | Morgan Stanley, Sr. Unsecd. Note, Series MTN, 2.720%, 7/22/2025 | 1,958,620 | |
3,000,000 | PNC Financial Services Group, Inc., Sr. Unsecd. Note, 2.200%, 11/1/2024 | 2,907,723 | |
1,000,000 | PNC Financial Services Group, Inc., Sr. Unsecd. Note, 3.500%, 1/23/2024 | 996,476 | |
1,805,000 | PNC Financial Services Group, Inc., Sr. Unsecd. Note, 5.582%, 6/12/2029 | 1,792,988 | |
1,500,000 | PNC Financial Services Group, Inc., Sr. Unsecd. Note, 5.671%, 10/28/2025 | 1,490,736 | |
2,330,000 | Regions Financial Corp., Sr. Unsecd. Note, 2.250%, 5/18/2025 | 2,189,209 | |
1,250,000 | Truist Bank, Sr. Unsecd. Note, Series BKNT, 1.500%, 3/10/2025 | 1,181,706 | |
2,500,000 | Truist Financial Corp., Sr. Unsecd. Note, Series MTN, 1.200%, 8/5/2025 | 2,318,467 | |
2,500,000 | Truist Financial Corp., Sr. Unsecd. Note, Series MTN, 1.267%, 3/2/2027 | 2,249,731 | |
1,500,000 | Truist Financial Corp., Sr. Unsecd. Note, Series MTN, 6.047%, 6/8/2027 | 1,502,528 | |
2,520,000 | US Bancorp, Sr. Unsecd. Note, 1.450%, 5/12/2025 | 2,376,122 | |
2,000,000 | US Bancorp, Sr. Unsecd. Note, 5.775%, 6/12/2029 | 1,999,899 | |
1,000,000 | Wells Fargo & Co., Sr. Unsecd. Note, Series MTN, 3.000%, 2/19/2025 | 970,438 | |
TOTAL | 78,294,192 | ||
Financial Institution - Broker/Asset Mgr/Exchange—0.1% | |||
1,460,000 | Jefferies Financial Group LLC, Sr. Unsecd. Note, 5.875%, 7/21/2028 | 1,449,776 | |
Financial Institution - Finance Companies—0.9% | |||
4,435,000 | AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 1.750%, 1/30/2026 | 4,057,147 | |
1,665,000 | AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 2.450%, 10/29/2026 | 1,517,430 | |
1,455,000 | Air Lease Corp., Sr. Unsecd. Note, Series MTN, 0.700%, 2/15/2024 | 1,439,166 | |
1,290,000 | Ally Financial, Inc., Sr. Unsecd. Note, 6.992%, 6/13/2029 | 1,297,786 | |
TOTAL | 8,311,529 | ||
Financial Institution - Insurance - Health—0.6% | |||
2,900,000 | Centene Corp., Sr. Unsecd. Note, 2.450%, 7/15/2028 | 2,515,816 | |
3,000,000 | Elevance Health, Inc., Sr. Unsecd. Note, 1.500%, 3/15/2026 | 2,760,072 |
4
Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - Insurance - Health—continued | |||
$ 300,000 | Elevance Health, Inc., Sr. Unsecd. Note, 5.350%, 10/15/2025 | $ 299,871 | |
TOTAL | 5,575,759 | ||
Financial Institution - Insurance - Life—2.1% | |||
1,000,000 | AIA Group Ltd., Sr. Unsecd. Note, 144A, 3.200%, 3/11/2025 | 972,750 | |
3,000,000 | AIA Group Ltd., Sr. Unsecd. Note, 144A, 5.625%, 10/25/2027 | 3,054,719 | |
1,000,000 | CoreBridge Global Funding, Sr. Secd. Note, 144A, 0.450%, 12/8/2023 | 999,317 | |
2,500,000 | Met Life Global Funding I, Sec. Fac. Bond, 144A, 0.400%, 1/7/2024 | 2,486,268 | |
4,415,000 | Northwestern Mutual Global, Sr. Secd. Note, 144A, 0.800%, 1/14/2026 | 4,029,187 | |
2,500,000 | Pacific Life Global Funding II, Sec. Fac. Bond, 144A, 1.200%, 6/24/2025 | 2,343,207 | |
2,500,000 | PRICOA Global Funding I, Sec. Fac. Bond, 144A, 0.800%, 9/1/2025 | 2,310,502 | |
1,035,000 | Principal Life Global Funding II, Sec. Fac. Bond, 144A, 0.500%, 1/8/2024 | 1,029,677 | |
2,000,000 | Principal Life Global Funding II, Sec. Fac. Bond, 144A, 1.250%, 6/23/2025 | 1,870,759 | |
1,000,000 | Principal Life Global Funding II, Sec. Fac. Bond, 144A, 2.250%, 11/21/2024 | 966,857 | |
TOTAL | 20,063,243 | ||
Financial Institution - REIT - Other—0.0% | |||
300,000 | WP Carey, Inc., Sr. Unsecd. Note, 4.600%, 4/1/2024 | 297,922 | |
Technology—1.5% | |||
2,000,000 | Apple, Inc., Sr. Unsecd. Note, 0.550%, 8/20/2025 | 1,860,174 | |
1,000,000 | Apple, Inc., Sr. Unsecd. Note, 1.125%, 5/11/2025 | 947,102 | |
700,000 | Apple, Inc., Sr. Unsecd. Note, 3.000%, 2/9/2024 | 696,430 | |
1,000,000 | Broadcom, Inc., Sr. Unsecd. Note, 3.150%, 11/15/2025 | 959,929 | |
2,520,000 | CDW LLC / CDW Finance, Sr. Unsecd. Note, 2.670%, 12/1/2026 | 2,309,684 | |
750,000 | Dell International LLC / EMC Corp., Sr. Unsecd. Note, 4.000%, 7/15/2024 | 741,537 | |
2,000,000 | Oracle Corp., Sr. Unsecd. Note, 1.650%, 3/25/2026 | 1,843,559 | |
1,855,000 | Oracle Corp., Sr. Unsecd. Note, 2.500%, 4/1/2025 | 1,782,576 | |
535,000 | Skyworks Solutions, Inc., Sr. Unsecd. Note, 1.800%, 6/1/2026 | 491,802 | |
2,660,000 | VMware, Inc., Sr. Unsecd. Note, 1.400%, 8/15/2026 | 2,400,514 | |
TOTAL | 14,033,307 | ||
Technology Services—0.4% | |||
4,130,000 | Fortinet, Inc., Sr. Unsecd. Note, 1.000%, 3/15/2026 | 3,739,095 | |
Transportation - Airlines—0.1% | |||
770,000 | Southwest Airlines Co., Sr. Unsecd. Note, 5.250%, 5/4/2025 | 765,411 | |
Transportation - Services—1.1% | |||
1,850,000 | Enterprise Rent-A-Car USA Finance Co., Sr. Unsecd. Note, 144A, 4.600%, 5/1/2028 | 1,801,683 | |
5,555,000 | GXO Logistics, Inc., Sr. Unsecd. Note, Series WI, 1.650%, 7/15/2026 | 4,969,328 | |
1,800,000 | Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 5.550%, 5/1/2028 | 1,783,285 | |
1,735,000 | Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 1.750%, 9/1/2026 | 1,571,490 | |
TOTAL | 10,125,786 | ||
Utility - Electric—4.7% | |||
1,135,000 | American Electric Power Co., Inc., Jr. Sub. Note, 5.699%, 8/15/2025 | 1,136,093 | |
430,000 | American Electric Power Co., Inc., Sr. Unsecd. Note, 5.750%, 11/1/2027 | 437,077 | |
790,000 | American Electric Power Co., Inc., Sr. Unsecd. Note, Series N, 1.000%, 11/1/2025 | 724,620 | |
3,155,000 | Black Hills Corp., Sr. Unsecd. Note, 1.037%, 8/23/2024 | 3,046,740 | |
2,180,000 | Constellation Energy Generation LLC, Sr. Unsecd. Note, 3.250%, 6/1/2025 | 2,103,722 | |
610,000 | Dominion Energy, Inc., Jr. Sub. Note, 3.071%, 8/15/2024 | 597,604 | |
2,000,000 | Dominion Energy, Inc., Sr. Unsecd. Note, Series A, 3.300%, 3/15/2025 | 1,942,713 | |
860,000 | Duke Energy Corp., Sr. Unsecd. Note, 5.000%, 12/8/2027 | 851,591 | |
1,005,000 | Electricite de France SA, Sr. Unsecd. Note, 144A, 5.700%, 5/23/2028 | 1,016,855 | |
1,915,000 | Emera US Finance LP, Sr. Unsecd. Note, 0.833%, 6/15/2024 | 1,854,403 | |
2,665,000 | Enel Finance International NV, Sr. Unsecd. Note, 144A, 1.375%, 7/12/2026 | 2,389,113 |
5
Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Utility - Electric—continued | |||
$ 1,000,000 | Enel Finance International NV, Sr. Unsecd. Note, 144A, 2.650%, 9/10/2024 | $ 974,284 | |
1,670,000 | Enel Finance International NV, Sr. Unsecd. Note, 144A, 6.800%, 10/14/2025 | 1,700,826 | |
5,000,000 | EverSource Energy, Sr. Unsecd. Note, Series Q, 0.800%, 8/15/2025 | 4,604,822 | |
5,000,000 | Fells Point Funding Trust, Sr. Unsecd. Note, 3.046%, 1/31/2027 | 4,606,484 | |
245,000 | FirstEnergy Corp., Sr. Unsecd. Note, Series A, 1.600%, 1/15/2026 | 225,900 | |
1,445,000 | Florida Power & Light Co., Sec. Fac. Bond, 2.850%, 4/1/2025 | 1,401,311 | |
460,000 | National Rural Utilities Cooperative Finance Corp., Sr. Unsecd. Note, 2.950%, 2/7/2024 | 457,659 | |
2,500,000 | National Rural Utilities Cooperative Finance Corp., Sr. Unsecd. Note, 5.450%, 10/30/2025 | 2,509,768 | |
910,000 | NextEra Energy Capital Holdings, Inc., Sr. Unsecd. Note, 6.051%, 3/1/2025 | 913,658 | |
2,305,000 | NiSource, Inc., Sr. Unsecd. Note, 5.250%, 3/30/2028 | 2,303,688 | |
2,695,000 | Oncor Electric Delivery Co. LLC, Sr. Unsecd. Note, Series WI, 0.550%, 10/1/2025 | 2,474,626 | |
4,080,000 | Public Service Enterprises Group, Inc., Sr. Unsecd. Note, 0.800%, 8/15/2025 | 3,774,205 | |
365,000 | Public Service Enterprises Group, Inc., Sr. Unsecd. Note, 2.875%, 6/15/2024 | 359,432 | |
3,000,000 | WEC Energy Group, Inc., Sr. Unsecd. Note, 4.750%, 1/15/2028 | 2,940,884 | |
TOTAL | 45,348,078 | ||
Utility - Natural Gas—0.7% | |||
1,500,000 | Enbridge, Inc., Sr. Unsecd. Note, 2.500%, 1/15/2025 | 1,448,042 | |
1,985,000 | National Fuel Gas Co., Sr. Unsecd. Note, 5.500%, 1/15/2026 | 1,983,160 | |
3,379,000 | ONE Gas, Inc., Sr. Unsecd. Note, 1.100%, 3/11/2024 | 3,335,053 | |
TOTAL | 6,766,255 | ||
Utility - Natural Gas Distributor—0.2% | |||
1,700,000 | The East Ohio Gas Co., Sr. Unsecd. Note, 144A, 1.300%, 6/15/2025 | 1,593,189 | |
Utility - Other—0.1% | |||
1,135,000 | National Grid-SP PLC, Sr. Unsecd. Note, 5.602%, 6/12/2028 | 1,145,023 | |
TOTAL CORPORATE BONDS (IDENTIFIED COST $364,242,122) | 347,856,177 | ||
ASSET-BACKED SECURITIES—2.6% | |||
Auto Receivables—1.6% | |||
4,250,000 | Bank of America Auto Trust 2023-2, Class A3, 5.740%, 6/15/2028 | 4,275,821 | |
5,000,000 | Enterprise Fleet Financing, LLC 2023-3, Class A2, 6.400%, 3/20/2030 | 5,033,078 | |
1,550,000 | Honda Auto Receivables Owner Trust 2023-2, Class A3, 4.930%, 11/15/2027 | 1,541,923 | |
2,275,000 | Honda Auto Receivables Owner Trust 2023-4, Class A3, 5.670%, 6/21/2028 | 2,302,448 | |
316,365 | Hyundai Auto Receivables Trust 2020-C, Class A3, 0.380%, 5/15/2025 | 313,966 | |
52,494 | World Omni Auto Receivables Trust 2020-B, Class A3, 0.630%, 5/15/2025 | 52,338 | |
1,533,712 | World Omni Auto Receivables Trust 2020-C, Class A3, 0.480%, 11/17/2025 | 1,513,181 | |
TOTAL | 15,032,755 | ||
Equipment Lease—0.6% | |||
1,636,629 | MMAF Equipment Finance LLC 2020-A, Class A3, 0.970%, 4/9/2027 | 1,553,377 | |
2,317,558 | MMAF Equipment Finance LLC 2020-BA, Class A3, 0.490%, 8/14/2025 | 2,266,007 | |
2,500,000 | MMAF Equipment Finance LLC 2023-A, Class A3, 5.540%, 12/13/2029 | 2,502,067 | |
TOTAL | 6,321,451 | ||
Other—0.2% | |||
2,125,000 | PFS Financing Corp. 2020-G, Class A, 0.970%, 2/15/2026 | 2,108,617 | |
Student Loans—0.2% | |||
944,232 | Navient Student Loan Trust 2020-GA, Class A, 1.170%, 9/16/2069 | 828,385 | |
1,038,872 | Navient Student Loan Trust 2020-HA, Class A, 1.310%, 1/15/2069 | 944,366 | |
TOTAL | 1,772,751 | ||
TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $25,537,424) | 25,235,574 |
6
Principal Amount or Shares | Value | ||
COMMERCIAL MORTGAGE-BACKED SECURITIES—1.0% | |||
Commercial Mortgage—1.0% | |||
$ 1,537,527 | Benchmark Mortgage Trust 2019-B12, Class A2, 3.000%, 8/15/2052 | $ 1,491,516 | |
2,885,000 | Benchmark Mortgage Trust 2021-B26, Class A2, 1.957%, 6/15/2054 | 2,635,151 | |
1,256,935 | GS Mortgage Securities Trust 2019-GC39, Class A2, 3.457%, 5/10/2052 | 1,221,282 | |
1,750,000 | GS Mortgage Securities Trust 2019-GC40, Class A2, 2.971%, 7/10/2052 | 1,717,249 | |
2,750,000 | 1 | ORL Trust 2023-GLKS, Class A, 7.673% (CME Term SOFR 1 Month +2.350%), 10/15/2028 | 2,745,706 |
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $10,388,459) | 9,810,904 | ||
MORTGAGE-BACKED SECURITIES—0.1% | |||
Federal National Mortgage Association—0.1% | |||
587,023 | FNMA, Pool AS2976, 4.000%, 8/1/2044 | 548,504 | |
296,649 | FNMA, Pool AW0029, 3.500%, 7/1/2044 | 268,757 | |
TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $922,896) | 817,261 | ||
COLLATERALIZED MORTGAGE OBLIGATION—0.0% | |||
Federal Home Loan Mortgage Corporation—0.0% | |||
11,487 | 1 | FHLMC REMIC, Series 3397, Class FC, 6.038% (30-DAY AVERAGE SOFR +0.714%), 12/15/2037 (IDENTIFIED COST $11,509) | 11,268 |
INVESTMENT COMPANIES—12.8% | |||
318,717 | Bank Loan Core Fund | 2,776,021 | |
1,431,842 | Emerging Markets Core Fund | 11,440,420 | |
1,610,238 | Federated Hermes Government Obligations Fund, Premier Shares, 5.28%3 | 1,610,238 | |
4,380,327 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 5.45%3 | 4,381,641 | |
7,704,439 | Mortgage Core Fund | 62,560,044 | |
4,590,097 | Project and Trade Finance Core Fund | 40,346,953 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $124,054,369) | 123,115,317 | ||
TOTAL INVESTMENT IN SECURITIES—99.8% (IDENTIFIED COST $988,508,708) | 958,011,350 | ||
OTHER ASSETS AND LIABILITIES - NET—0.2%4 | 1,477,986 | ||
TOTAL NET ASSETS—100% | $959,489,336 |
At November 30, 2023, the Fund had the following outstanding futures contracts:
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized Appreciation |
Long Futures: | ||||
United States Treasury Notes 2-Year Long Futures | 300 | $61,338,282 | March 2024 | $238,388 |
United States Treasury Notes 5-Year Long Futures | 100 | $10,685,156 | March 2024 | $56,025 |
NET UNREALIZED APPRECIATION ON FUTURES CONTRACTS | $294,413 |
The average notional value of long futures contracts held by the Fund throughout the period was $71,595,118. This is based on the contracts held as of each month-end throughout the three-month fiscal period.
Net Unrealized Appreciation on Futures Contracts is included in “Other Assets and Liabilities—Net.”
7
Transactions with affiliated investment companies, which are funds managed by the Adviser or an affiliate of the Adviser, during the period ended November 30, 2023, were as follows:
Affiliates | Value as of 8/31/2023 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation/ Depreciation | Net Realized Gain/ (Loss) | Value as of 11/30/2023 | Shares Held as of 11/30/2023 | Dividend Income |
Bank Loan Core Fund | $27,349,920 | $496,072 | $(25,000,000) | $892,463 | $(962,434) | $2,776,021 | 318,717 | $496,152 |
Emerging Markets Core Fund | $964,079 | $10,089,314 | $— | $387,027 | $— | $11,440,420 | 1,431,842 | $89,345 |
Federated Hermes Government Obliga- tions Fund, Premier Shares* | $1,930,025 | $133,209,713 | $(133,529,500) | $— | $— | $1,610,238 | 1,610,238 | $62,270 |
Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | $2,645,870 | $71,434,828 | $(69,699,686) | $83 | $546 | $4,381,641 | 4,380,327 | $93,522 |
Mortgage Core Fund | $62,671,928 | $709,092 | $— | $(820,976) | $— | $62,560,044 | 7,704,439 | $709,123 |
Project and Trade Finance Core Fund | $54,425,357 | $677,569 | $(15,000,000) | $1,222,582 | $(978,555) | $40,346,953 | 4,590,097 | $677,654 |
TOTAL OF AFFILIATED TRANSAC- TIONS | $149,987,179 | $216,616,588 | $(243,229,186) | $1,681,179 | $(1,940,443) | $123,115,317 | 20,035,660 | $2,128,066 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions. |
1 | Floating/variable note with current rate and current maturity or next reset date shown. |
2 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. As of November 30, 2023, securities subject to this type of arrangement and related collateral were as follows: |
Fair Value of Securities Loaned | Collateral Received |
$1,535,957 | $1,610,238 |
3 | 7-day net yield. |
4 | Assets, other than investments in securities, less liabilities. |
Note: The categories of investments are shown as a percentage of total net assets at November 30, 2023.
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
◾ Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by Federated Investment Management Company (the “Adviser”).
◾ Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
◾ Shares of other mutual funds or non-exchange traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.
◾ Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and ask quotations.
◾ Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser.
◾ For securities that are fair valued in accordance with procedures established by and under the general supervision of the Adviser, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.
If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Adviser’s valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion of the Adviser’s valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.
Fair Valuation and Significant Events Procedures
Pursuant to Rule 2a-5 under the Investment Company Act of 1940, the Fund’s Board of Trustees (the “Trustees”) has designated the Adviser as the Fund’s valuation designee to perform any fair value determinations for securities and other assets held by the Fund. The Adviser is subject to the Trustees’ oversight and certain reporting and other requirements intended to provide the Trustees the information needed to oversee the Adviser’s fair value determinations.
8
The Adviser, acting through its Valuation Committee, is responsible for determining the fair value of investments for which market quotations are not readily available. The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser’s affiliated companies and determines fair value and oversees the calculation of the NAV. The Valuation Committee is also authorized to use pricing services to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Adviser. The Trustees periodically review the fair valuations made by the Valuation Committee. The Trustees have also approved the Adviser’s fair valuation and significant events procedures as part of the Fund’s compliance program and will review any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and ask for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Adviser.
The Adviser has also adopted procedures requiring an investment to be priced at its fair value whenever the Valuation Committee determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
◾ With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;
◾ Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;
◾ Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
The Adviser has adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Valuation Committee will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Adviser. The Trustees periodically review fair valuations made in response to significant events.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
9
The following is a summary of the inputs used, as of November 30, 2023, in valuing the Fund’s assets carried at fair value:
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
U.S. Treasuries | $— | $451,164,849 | $— | $451,164,849 |
Corporate Bonds | — | 347,856,177 | — | 347,856,177 |
Asset-Backed Securities | — | 25,235,574 | — | 25,235,574 |
Commercial Mortgage-Backed Securities | — | 9,810,904 | — | 9,810,904 |
Mortgage-Backed Securities | — | 817,261 | — | 817,261 |
Collateralized Mortgage Obligation | — | 11,268 | — | 11,268 |
Investment Companies1 | 82,768,364 | — | — | 123,115,317 |
TOTAL SECURITIES | $82,768,364 | $834,896,033 | $— | $958,011,350 |
Other Financial Instruments:2 | ||||
Assets | $294,413 | $— | $— | $294,413 |
TOTAL OTHER FINANCIAL INSTRUMENTS | $294,413 | $— | $— | $294,413 |
1 | As permitted by U.S. generally accepted accounting principles (GAAP), an Investment Company valued at $40,346,953 is measured at fair value using the net asset value (NAV) per share practical expedient and has not been categorized in the chart above but is included in the Total column. The price of shares redeemed of Project and Trade Finance Core Fund may be determined as of the closing NAV of the fund up to twenty-four days after receipt of a shareholder redemption request. |
2 | Other financial instruments are futures contracts. |
The following acronym(s) are used throughout this portfolio: | ||
BKNT | —Bank Notes | |
FHLMC | —Federal Home Loan Mortgage Corporation | |
FNMA | —Federal National Mortgage Association | |
MTN | —Medium Term Note | |
REIT | —Real Estate Investment Trust | |
REMIC | —Real Estate Mortgage Investment Conduit | |
SOFR | —Secured Overnight Financing Rate |
10