Federated MDT Small Cap Growth Fund
Portfolio of Investments
April 30, 2020 (unaudited)
Shares | Value | ||
COMMON STOCKS—98.1% | |||
Communication Services—3.3% | |||
755,526 | 1 | Cars.com, Inc. | $3,913,625 |
197,739 | 2 | Cogent Communications Holdings, Inc. | 16,576,460 |
32,386 | 1 | EverQuote, Inc. | 1,262,082 |
49,612 | 1 | Fluent, Inc. | 99,720 |
77,663 | 1 | Imax Corp. | 893,124 |
13,508 | Meredith Corp. | 200,324 | |
38,559 | 1,2 | Yelp, Inc. | 861,794 |
TOTAL | 23,807,129 | ||
Consumer Discretionary—10.7% | |||
527,261 | Aaron's, Inc. | 16,824,898 | |
60,444 | American Eagle Outfitters, Inc. | 480,530 | |
38,696 | 1,2 | Asbury Automotive Group, Inc. | 2,611,980 |
6,659 | 1 | Cavco Industries, Inc. | 1,030,014 |
7,324 | Core-Mark Holding Co., Inc. | 210,492 | |
20,248 | 2 | Dave & Buster's Entertainment, Inc. | 296,431 |
165,497 | 1 | Denny's Corp. | 1,865,151 |
168,987 | 1 | Everi Holdings, Inc. | 836,486 |
232,910 | 2 | Falcon Minerals Corp. | 569,465 |
68,060 | 1,2 | Funko, Inc. | 291,297 |
1,131,555 | 1,2 | Groupon, Inc. | 1,380,497 |
1,413 | 1 | Helen of Troy Ltd. | 232,128 |
38,552 | 1 | Installed Building Products, Inc. | 1,900,999 |
36,532 | 1,2 | iRobot Corp. | 2,226,991 |
83,037 | 1,2 | Lovesac Co./The | 990,631 |
12,344 | 1 | MCBC Holdings, Inc. | 128,995 |
11,800 | 1 | Malibu Boats, Inc. | 405,684 |
67,535 | 1 | Overstock.com, Inc. | 852,292 |
74,791 | 1 | Perdoceo Education Corp. | 972,283 |
201,370 | 1 | PlayAGS, Inc. | 884,014 |
223,362 | Rent-A-Center, Inc. | 4,446,021 | |
352,012 | 1,2 | SeaWorld Entertainment, Inc. | 5,171,056 |
209,798 | 1 | Skyline Corp. | 4,135,118 |
263,775 | Steven Madden Ltd. | 6,612,839 | |
23,267 | 1 | TopBuild Corp. | 2,168,252 |
157,419 | 2 | Wingstop, Inc. | 18,460,526 |
38,733 | Wolverine World Wide, Inc. | 793,639 | |
TOTAL | 76,778,709 | ||
Consumer Staples—3.4% | |||
28,254 | 1 | BJ's Wholesale Club Holdings, Inc. | 743,363 |
48,291 | 1,2 | Bellring Brands, Inc. | 846,541 |
1,293 | Coca-Cola Bottling Co. | 304,463 | |
127,252 | 1 | elf Beauty, Inc. | 1,663,184 |
85,150 | 1 | Freshpet, Inc. | 6,421,161 |
116,714 | Inter Parfums, Inc. | 5,215,949 | |
6,114 | 2 | MGP Ingredients, Inc. | 230,681 |
59,443 | 2 | Medifast, Inc. | 4,510,535 |
5,825 | 1,2 | The Boston Beer Co., Inc., Class A | 2,717,421 |
1
Shares | Value | ||
COMMON STOCKS—continued | |||
Consumer Staples—continued | |||
107,746 | Vector Group Ltd. | $1,152,882 | |
2,052 | WD 40 Co. | 357,622 | |
TOTAL | 24,163,802 | ||
Energy—1.6% | |||
215,455 | 1,2 | CONSOL Energy, Inc. | 1,635,303 |
160,118 | 2 | CVR Energy, Inc. | 3,818,814 |
20,622 | 2 | DMC Global, Inc. | 532,254 |
523,127 | 1,2 | Denbury Resources, Inc. | 185,972 |
615,078 | 2 | Liberty Oilfield Services, Inc. | 2,903,168 |
494,290 | 1 | Propetro Holding Corp. | 2,095,790 |
TOTAL | 11,171,301 | ||
Financials—6.5% | |||
442,596 | 1 | Blucora, Inc. | 6,227,326 |
35,026 | CNB Financial Corp. | 621,361 | |
5,623 | 1,2 | eHealth, Inc. | 599,974 |
29,799 | 2 | FB Financial Corp. | 665,710 |
28,255 | 1 | Green Dot Corp. | 861,777 |
40,460 | Guaranty Bancshares, Inc. | 1,091,206 | |
62,106 | Independent Bank Corp.- Michigan | 912,337 | |
39,588 | Kinsale Capital Group, Inc. | 4,300,048 | |
48,214 | Meta Financial Group, Inc. | 888,102 | |
569,669 | 1 | NMI Holdings, Inc. | 7,701,925 |
285,665 | National General Holdings Corp. | 5,436,205 | |
74,242 | 1 | Palomar Holdings, Inc. | 4,343,157 |
6,879 | RLI Corp. | 500,998 | |
166,597 | Selective Insurance Group, Inc. | 8,351,508 | |
35,954 | State Auto Financial Corp. | 902,086 | |
85,492 | The Bank of NT Butterfield & Son Ltd. | 1,881,679 | |
18,279 | 1,2 | World Acceptance Corp. | 1,240,230 |
TOTAL | 46,525,629 | ||
Health Care—31.9% | |||
52,770 | 1,2 | ANI Pharmaceuticals, Inc. | 2,111,328 |
23,101 | 1 | Acadia Pharmaceuticals, Inc. | 1,116,009 |
34,146 | 1,2 | Acceleron Pharma, Inc. | 3,091,237 |
96,205 | 1,2 | Acer Therapeutics, Inc. | 230,892 |
51,904 | 1,3 | Adeptus Health, Inc. | 0 |
23,567 | 1 | Akcea Therapeutics, Inc. | 402,053 |
37,034 | 1,2 | Alector, Inc. | 915,480 |
83,395 | 1,2 | Amedisys, Inc. | 15,358,023 |
17,402 | 1 | Amicus Therapeutics, Inc. | 205,518 |
1,085,533 | 1,2 | Amneal Pharmaceuticals, Inc. | 3,940,485 |
224,744 | 1 | AnaptysBio, Inc. | 3,510,501 |
13,209 | 1,2 | Applied Therapeutics, Inc. | 472,222 |
105,625 | 1,2 | Arena Pharmaceuticals, Inc. | 5,172,456 |
43,072 | 1,2 | Arrowhead Pharmaceuticals, Inc. | 1,482,969 |
122,609 | 1,2 | Arvinas, Inc. | 6,436,972 |
204,227 | 1 | Assertio Therapeutics, Inc. | 178,699 |
446,999 | 1,2 | Atara Biotherapeutics, Inc. | 3,705,622 |
117,131 | 1,2 | AxoGen, Inc. | 1,142,027 |
15,672 | 1,2 | Axsome Therapeutics, Inc. | 1,489,310 |
20,382 | 1 | Bioxcel Therapeutics, Inc. | 754,134 |
2
Shares | Value | ||
COMMON STOCKS—continued | |||
Health Care—continued | |||
236,306 | 1 | Catalyst Pharmaceutical Partners, Inc. | $1,120,090 |
31,098 | 1 | ChemoCentryx, Inc. | 1,648,505 |
127,004 | 1,2 | Collegium Pharmaceutical, Inc. | 2,626,443 |
56,593 | 1 | Corcept Therapeutics, Inc. | 716,467 |
23,842 | 1 | Crinetics Pharmaceuticals, Inc. | 397,685 |
24,109 | 1 | Cross Country Healthcare, Inc. | 151,646 |
106,542 | 1 | Cue Biopharma, Inc. | 2,725,344 |
116,586 | 1 | Cutera, Inc. | 1,568,082 |
120,576 | 1 | Cymabay Therapeutics, Inc. | 213,420 |
73,315 | 1 | Deciphera Pharmaceuticals, Inc. | 4,250,804 |
70,037 | 1,2 | Dicerna Pharmaceuticals, Inc. | 1,379,729 |
53,000 | 1 | Emergent BioSolutions, Inc. | 3,919,350 |
33,442 | 1 | Enanta Pharmaceuticals, Inc. | 1,550,706 |
15,960 | 1 | Evofem Biosciences, Inc. | 75,650 |
198,416 | 1,2 | Fate Therapeutics, Inc. | 5,432,630 |
258,031 | 1 | Fluidigm Corp. | 577,989 |
110,838 | 1 | G1 Therapeutics, Inc. | 1,455,303 |
3,279 | 1 | Global Blood Therapeutics, Inc. | 250,909 |
64,304 | 1 | Globus Medical, Inc. | 3,051,868 |
369,402 | 1 | GlycoMimetics, Inc. | 1,030,632 |
163,880 | 1 | Halozyme Therapeutics, Inc. | 3,712,701 |
153,262 | 1,2 | Immunogen, Inc. | 625,309 |
66,573 | 1 | Immunomedics, Inc. | 2,022,488 |
226,242 | 1,2 | Inovalon Holdings, Inc. | 3,959,235 |
40,004 | 1 | Intra-Cellular Therapies, Inc. | 706,871 |
4,868 | 1 | iRhythm Technologies, Inc. | 514,255 |
381,414 | 1,2 | Ironwood Pharmaceuticals, Inc. | 3,814,140 |
194,896 | 1,2 | Kadmon Holdings, Inc. | 838,053 |
60,344 | 1,2 | Kala Pharmaceuticals, Inc. | 601,026 |
5,169 | 1 | Karuna Therapeutics, Inc. | 429,441 |
69,338 | 1 | Karyopharm Therapeutics, Inc. | 1,528,903 |
12,285 | 1 | Kezar Life Sciences, Inc. | 57,739 |
205,053 | 1,2 | Kiniksa Pharmaceuticals Ltd. | 4,090,807 |
96,760 | 2 | LeMaitre Vascular, Inc. | 2,756,692 |
1,066,432 | 1,2 | Lexicon Pharmaceuticals, Inc. | 2,015,556 |
145,365 | 1 | MacroGenics, Inc. | 1,046,628 |
137,096 | 1 | Medpace Holdings, Inc. | 10,948,487 |
30,709 | 1 | Mirati Therapeutics, Inc. | 2,611,493 |
72,932 | 1 | Molecular Templates, Inc., Class THL | 1,183,686 |
162,883 | 1 | Momenta Pharmaceuticals, Inc. | 5,163,391 |
11,195 | 1,2 | Myokardia, Inc. | 703,270 |
398,547 | 1,2 | Myriad Genetics, Inc. | 6,161,537 |
131,587 | 1,2 | NeoGenomics, Inc. | 3,597,589 |
32,345 | 1 | NextCure, Inc. | 1,048,625 |
97,494 | 1,2 | NuVasive, Inc. | 5,935,435 |
40,856 | 1 | Orthofix Medical, Inc. | 1,448,345 |
11,954 | 1 | Pacira BioSciences, Inc. | 493,581 |
34,960 | 1 | Principia Biopharma, Inc. | 2,173,813 |
458,367 | 1,2 | Puma Biotechnology, Inc. | 4,606,588 |
298,427 | 1 | R1 RCM, Inc. | 3,079,767 |
220,878 | 1 | Recro Pharma, Inc. | 1,868,628 |
3
Shares | Value | ||
COMMON STOCKS—continued | |||
Health Care—continued | |||
87,731 | 1,2 | Repligen Corp. | $10,189,956 |
49,576 | 1 | Savara, Inc. | 119,478 |
77,766 | 1,2 | Scholar Rock Holding Corp. | 1,277,695 |
181,370 | 1 | Select Medical Holdings Corp. | 3,095,986 |
24,554 | 2 | Simulations Plus, Inc. | 934,280 |
41,556 | 1 | Tandem Diabetes Care, Inc. | 3,315,338 |
95,768 | 1,2 | Teladoc, Inc. | 15,762,455 |
10,776 | 1 | Tenet Healthcare Corp. | 217,460 |
248,764 | 1 | Theravance Biopharma, Inc. | 7,253,958 |
80,971 | 1 | Twist Bioscience Corp. | 2,648,561 |
27,756 | 2 | U.S. Physical Therapy, Inc. | 2,095,578 |
10,938 | 1 | Ultragenyx Pharmaceutical, Inc. | 660,983 |
172,566 | 1 | Vanda Pharmaceuticals, Inc. | 1,984,509 |
142,516 | 1 | Viewray, Inc. | 296,433 |
52,684 | 1,2 | Viking Therapeutics, Inc. | 303,460 |
144,701 | 1 | Voyager Therapeutics, Inc. | 1,564,218 |
290,429 | 1,2 | Xencor, Inc. | 8,489,240 |
193,168 | 1,2 | Zynex, Inc. | 3,411,347 |
TOTAL | 229,224,203 | ||
Industrials—15.7% | |||
49,767 | 1,2 | ASGN, Inc. | 2,311,677 |
7,916 | AZZ, Inc. | 248,483 | |
11,879 | 1,2 | Aerojet Rocketdyne Holdings, Inc. | 488,702 |
29,900 | 1 | Aerovironment, Inc. | 1,801,774 |
25,978 | Albany International Corp., Class A | 1,328,515 | |
49,760 | 2 | Allegiant Travel Co. | 3,905,165 |
32,801 | 1 | American Woodmark Corp. | 1,686,299 |
95,453 | Apogee Enterprises, Inc. | 1,951,059 | |
121,271 | 1 | Astronics Corp. | 1,089,014 |
23,819 | 1 | Atkore International Group, Inc. | 579,754 |
6,223 | Barnes Group, Inc. | 238,839 | |
7,392 | Barrett Business Services, Inc. | 361,617 | |
22,496 | 1 | Beacon Roofing Supply, Inc. | 494,912 |
233,161 | 1 | Builders Firstsource, Inc. | 4,278,504 |
108,990 | 1 | Commercial Vehicle Group, Inc. | 263,756 |
5,685 | Douglas Dynamics, Inc. | 210,118 | |
163,237 | 1 | Echo Global Logistics, Inc. | 2,861,545 |
56,487 | Enerpac Tool Group Corp. | 963,668 | |
212,466 | 2 | Exponent, Inc. | 14,942,734 |
23,670 | Federal Signal Corp. | 637,433 | |
155,615 | 1 | Foundation Building Materials, Inc. | 1,820,696 |
69,260 | 1 | Franklin Covey Co. | 1,437,145 |
341,642 | 1 | GMS, Inc. | 6,279,380 |
376,141 | Granite Construction, Inc. | 6,183,758 | |
150,046 | Heidrick & Struggles International, Inc. | 3,367,032 | |
70,185 | Helios Technologies, Inc. | 2,496,480 | |
217,245 | Insperity, Inc. | 10,364,759 | |
189,851 | 1 | JELD-WEN Holding, Inc. | 2,411,108 |
163,196 | Knoll, Inc. | 1,902,865 | |
762,912 | 1 | MRC Global, Inc. | 4,089,208 |
122,011 | 1 | Mercury Systems, Inc. | 10,878,501 |
4
Shares | Value | ||
COMMON STOCKS—continued | |||
Industrials—continued | |||
18,721 | 1 | Mistras Group, Inc. | $88,925 |
57,860 | 1 | PGT, Inc. | 598,272 |
185,961 | REV Group, Inc. | 989,313 | |
54,821 | 1 | SPX Corp. | 2,090,325 |
121,343 | Spartan Motors, Inc. | 1,709,723 | |
219,605 | 1,2 | Spirit Airlines, Inc. | 3,298,467 |
117,797 | Terex Corp. | 1,789,336 | |
197,470 | 1 | Thermon Group Holdings, Inc. | 3,017,342 |
390,447 | Triumph Group, Inc. | 2,748,747 | |
959,408 | 1 | Welbilt, Inc. | 4,729,881 |
TOTAL | 112,934,831 | ||
Information Technology—16.9% | |||
219,959 | 1 | Cardtronics, Inc. | 5,037,061 |
125,767 | 1,2 | Coda Octopus Group, Inc. | 767,179 |
151,864 | 1 | Commvault Systems, Inc. | 6,483,074 |
356,943 | 1 | Diebold Nixdorf, Inc. | 1,759,729 |
10,032 | 2 | Ebix, Inc. | 209,970 |
14,085 | 1 | Enphase Energy, Inc. | 659,600 |
87,008 | 1,2 | Everbridge, Inc. | 9,690,951 |
201,370 | Evertec, Inc. | 5,102,716 | |
7,238 | 1 | Exlservice Holding, Inc. | 446,802 |
242,448 | 1,2 | Five9, Inc. | 22,467,656 |
115,509 | 1,2 | GTT Communications, Inc. | 1,312,182 |
114,050 | 1 | Inphi Corp. | 11,010,387 |
48,079 | 1 | Intelligent Systems Corp. | 1,612,570 |
44,095 | MTS Systems Corp. | 937,900 | |
38,716 | Maximus, Inc. | 2,606,361 | |
333,224 | 1 | MaxLinear, Inc. | 5,494,864 |
336,331 | 1 | Model N, Inc. | 9,706,513 |
49,079 | 1 | OSI Systems, Inc. | 3,552,338 |
137,537 | 1 | Perficient, Inc. | 4,790,414 |
437,233 | 2 | Plantronics, Inc. | 6,173,730 |
104,773 | 1 | Qualys, Inc. | 11,047,265 |
128,976 | 1 | SPS Commerce, Inc. | 7,159,458 |
97,523 | 1 | Secureworks Corp. | 1,109,812 |
27,640 | 1,2 | Semtech Corp. | 1,250,433 |
22,714 | TTEC Holdings, Inc. | 885,392 | |
TOTAL | 121,274,357 | ||
Materials—3.1% | |||
95,981 | Boise Cascade Co. | 3,001,326 | |
43,305 | Fuller (H.B.) Co. | 1,593,191 | |
10,915 | Kaiser Aluminum Corp. | 788,390 | |
235,950 | 1 | Koppers Holdings, Inc. | 3,718,572 |
173,451 | 1 | Kraton Corp. | 2,707,570 |
19,436 | Materion Corp. | 1,005,619 | |
286,238 | Myers Industries, Inc. | 3,537,902 | |
177,861 | Orion Engineered Carbons S.A. | 1,620,314 | |
86,100 | 1,3 | Rentech, Inc. | 0 |
137,626 | 1 | Ryerson Holding Corp. | 635,832 |
54,523 | Trinseo SA | 1,114,995 | |
38,663 | 2 | Trox Holdings PLC | 263,682 |
5
Shares | Value | ||
COMMON STOCKS—continued | |||
Materials—continued | |||
32,866 | 1 | U.S. Concrete, Inc. | $630,370 |
24,131 | 1 | Verso Corp. | 335,179 |
51,178 | Worthington Industries, Inc. | 1,353,146 | |
TOTAL | 22,306,088 | ||
Real Estate—4.5% | |||
225,276 | Easterly Government Properties, Inc. | 6,062,177 | |
8,718 | EastGroup Properties, Inc. | 924,108 | |
15,565 | 2 | LTC Properties, Inc. | 554,114 |
181,573 | Newmark Group, Inc. | 704,503 | |
202,446 | QTS Realty Trust, Inc. | 12,658,948 | |
208,587 | RMR Group, Inc./The | 6,186,690 | |
93,479 | Ryman Hospitality Properties | 3,303,548 | |
185,199 | 2 | Tanger Factory Outlet Centers, Inc. | 1,392,697 |
18,779 | Urstadt Biddle Properties, Inc., Class A | 274,361 | |
47,847 | Whitestone Project | 324,403 | |
TOTAL | 32,385,549 | ||
Utilities—0.5% | |||
44,188 | 2 | California Water Service Group | 1,984,925 |
11,446 | Chesapeake Utilities Corp. | 1,005,874 | |
4,487 | Southwest Gas Holdings, Inc. | 340,115 | |
TOTAL | 3,330,914 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $649,011,029) | 703,902,512 | ||
PREFERRED STOCK—0.0% | |||
Consumer Discretionary—0.0% | |||
13,146 | Overstock.com, Inc. (IDENTIFIED COST $12,331) | 131,462 | |
INVESTMENT COMPANIES—12.6% | |||
33,825,464 | Federated Government Obligations Fund, Premier Shares, 0.22%4 | 33,825,464 | |
56,965,931 | Federated Institutional Prime Value Obligations Fund, Institutional Shares, 0.66%4 | 56,988,717 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $90,812,809) | 90,814,181 | ||
TOTAL INVESTMENT IN SECURITIES—110.7% (IDENTIFIED COST $739,836,169) | 794,848,155 | ||
OTHER ASSETS AND LIABILITIES - NET—(10.7)%5 | (77,039,064) | ||
TOTAL NET ASSETS—100% | $717,809,091 |
An affiliated company is a company in which the Fund, alone or in combination with other funds, has ownership of at least 5% of the voting shares. Transactions with affiliated companies during the period ended April 30, 2020, were as follows:
Balance of Shares Held 7/31/2019 | Purchases/ Additions* | Sales/ Reductions* | Balance of Shares Held 4/30/2020 | Value | Change in Unrealized Appreciation/ Depreciation | Net Realized Gain/(Loss)* | Dividend Income* | |
Health Care: | ||||||||
Alector, Inc. | — | 66,648 | (29,614) | 37,034 | $915,480 | $(108,442) | $(172,755) | $— |
Ultragenyx Pharmaceutical, Inc. | — | 38,228 | (27,290) | 10,938 | $660,983 | $(67,018) | $(366,707) | $— |
Affiliated Issuer no longer in the portfolio at period end | — | 101,939 | (101,939) | — | $— | $— | $1,042,769 | $— |
TOTAL OF AFFILIATED TRANSACTIONS | — | 206,815 | (158,843) | 47,972 | $1,576,463 | $(175,460) | $503,307 | $— |
* | A portion of the amount shown was recorded when the Fund no longer had ownership of at least 5% of the voting shares. |
6
Affiliated fund holdings are investment companies which are managed by the Adviser or an affiliate of the Adviser. Transactions with affiliated fund holdings during the period ended April 30, 2020, were as follows:
Federated Government Obligations Fund, Premier Shares* | Federated Institutional Prime Value Obligations Fund, Institutional Shares* | Total Affiliated Transactions | |
Balance of Shares Held 7/31/2019 | 34,589,446 | 67,411,680 | 102,001,126 |
Purchases/Additions | 209,515,858 | 425,413,005 | 634,928,863 |
Sales/Reductions | (210,279,840) | (435,858,754) | (646,138,594) |
Balance of Shares Held 4/30/2020 | 33,825,464 | 56,965,931 | 90,791,395 |
Value | $33,825,464 | $56,988,717 | $90,814,181 |
Change in Unrealized Appreciation/Depreciation | N/A | $(3,460) | $(3,460) |
Net Realized Gain/(Loss) | N/A | $2,438 | $2,438 |
Dividend Income | $428,531 | $788,939 | $1,217,470 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions. |
1 | Non-income-producing security. |
2 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. |
As of April 30, 2020, securities subject to this type of arrangement and related collateral were as follows: |
Market Value of Securities Loaned | Collateral Received |
$76,874,954 | $81,914,464 |
3 | Market quotations and price evaluations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established by and under the general supervision of the Fund's Board of Trustees (the “Trustees”). |
4 | 7-day net yield. |
5 | Assets, other than investments in securities, less liabilities. |
Note: The categories of investments are shown as a percentage of total net assets at April 30, 2020.
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
■ | Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market. |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations. |
■ | Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions. |
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 Fund’s valuation policies and procedures, or if information furnished by a pricing service, in the opinion of the 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 Procedures
The Trustees have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Trustees have appointed a Valuation Committee comprised of officers of the Fund, Federated MDTA LLC (the “Adviser”), and certain of the Adviser’s affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of
7
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 Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and 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 asked 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 Trustees.
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.
The following is a summary of the inputs used, as of April 30, 2020, in valuing the Fund's assets carried at fair value:
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | $681,514,764 | $— | $0 | $681,514,764 |
International | 22,387,748 | — | — | 22,387,748 |
Preferred Stocks | ||||
Domestic | 131,462 | $— | — | 131,462 |
Investment Companies | 90,814,181 | — | — | 90,814,181 |
TOTAL SECURITIES | $794,848,155 | $— | $0 | $794,848,155 |
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