Federated Hermes MDT Small Cap Growth Fund
Portfolio of Investments
April 30, 2021 (unaudited)
Shares | Value | ||
COMMON STOCKS—98.3% | |||
Communication Services—3.2% | |||
54,937 | 1,2 | AMC Networks, Inc. | $2,762,233 |
501,298 | 1 | CarGurus, Inc. | 12,372,035 |
277,749 | 1 | Cars.com, Inc. | 3,669,064 |
99,477 | 1 | Eventbrite, Inc. | 2,344,673 |
12,468 | 1 | EverQuote, Inc. | 422,291 |
189,401 | 1 | Yelp, Inc. | 7,443,459 |
TOTAL | 29,013,755 | ||
Consumer Discretionary—15.9% | |||
135,086 | 1 | Academy Sports and Outdoors, Inc. | 4,162,000 |
83,521 | Big Lots, Inc. | 5,757,938 | |
40,271 | 1 | Bloomin Brands, Inc. | 1,272,564 |
33,004 | 1 | Brinker International, Inc. | 2,215,559 |
153,672 | Camping World Holdings, Inc. | 6,690,879 | |
107,478 | 1 | CROCs, Inc. | 10,760,697 |
12,700 | 1 | Deckers Outdoor Corp. | 4,295,140 |
149,625 | 1 | Grid Dynamics Holdings, Inc. | 2,156,096 |
48,312 | Installed Building Products, Inc. | 6,505,211 | |
9,123 | 1 | iRobot Corp. | 992,582 |
57,559 | Jack in the Box, Inc. | 6,944,493 | |
18,011 | 1 | Lakes Gaming, Inc. | 620,839 |
1,663 | 1 | LGI Homes, Inc. | 275,692 |
81,639 | 1 | Lovesac Co./The | 5,981,690 |
40,254 | Murphy USA, Inc. | 5,611,408 | |
39,103 | 1 | National Vision Holdings, Inc. | 1,971,182 |
7,488 | 1 | Onewater Marine, Inc. | 383,610 |
18,589 | Papa Johns International, Inc. | 1,797,928 | |
139,473 | 1 | Perdoceo Education Corp. | 1,626,255 |
177,104 | 1 | Red Rock Resorts, Inc. | 6,487,320 |
133,252 | Rent-A-Center, Inc. | 7,668,653 | |
5,593 | 1,2 | RH | 3,848,096 |
86,200 | 1 | SeaWorld Entertainment, Inc. | 4,720,312 |
46,099 | 1 | Shake Shack, Inc. | 5,013,266 |
82,230 | Shutterstock, Inc. | 7,168,811 | |
15,189 | 1 | Sleep Number Corp. | 1,699,497 |
260,495 | 1 | Sonos, Inc. | 10,427,615 |
32,700 | 1 | TopBuild Corp. | 7,271,826 |
9,442 | Wingstop, Inc. | 1,495,707 | |
53,143 | 1,3 | XPEL, Inc. | 3,406,466 |
161,200 | 1 | YETI Holdings, Inc. | 13,769,704 |
TOTAL | 142,999,036 | ||
Consumer Staples—2.0% | |||
169,455 | 1 | BJ’s Wholesale Club Holdings, Inc. | 7,569,555 |
104,269 | 1 | Central Garden & Pet Co., Class A | 5,137,334 |
16,783 | Coca-Cola Bottling Co. | 4,921,615 | |
36,315 | 1 | Hostess Brands, Inc. | 555,256 |
TOTAL | 18,183,760 |
1
Shares | Value | ||
COMMON STOCKS—continued | |||
Energy—0.2% | |||
177,163 | 1 | Magnolia Oil & Gas Corp. | $1,994,855 |
Financials—4.9% | |||
193,704 | Artisan Partners Asset Management, Inc. | 9,863,408 | |
24,541 | CNB Financial Corp. | 624,814 | |
41,164 | Cowen Group, Inc. | 1,625,566 | |
287,896 | Eastern Bankshares, Inc. | 6,140,822 | |
95,719 | 1 | Green Dot Corp. | 4,380,101 |
36,685 | Guaranty Bancshares, Inc. | 1,427,047 | |
67,209 | Houlihan Lokey, Inc. | 4,453,940 | |
172,321 | Moelis & Co. | 9,353,584 | |
48,765 | PJT Partners, Inc. | 3,585,690 | |
66,460 | StepStone Group, Inc. | 2,213,118 | |
TOTAL | 43,668,090 | ||
Health Care—31.8% | |||
25,924 | 1 | Addus Homecare Corp. | 2,742,759 |
51,904 | 1,4 | Adeptus Health, Inc. | 0 |
114,361 | 1 | Alphatec Holdings, Inc. | 1,828,632 |
33,798 | 1 | Amphastar Pharmaceuticals, Inc. | 588,085 |
59,020 | 1 | AnaptysBio, Inc. | 1,378,117 |
35,179 | 1,2 | Anavex Life Sciences Corp. | 424,962 |
135,073 | 1 | ANI Pharmaceuticals, Inc. | 4,495,229 |
14,442 | 1 | Apellis Pharmaceuticals, Inc. | 731,776 |
37,962 | 1 | Arcus Biosciences, Inc. | 1,281,218 |
9,486 | 1 | Arrowhead Pharmaceuticals, Inc. | 690,201 |
39,212 | 1 | Arvinas, Inc. | 2,703,275 |
95,797 | 1 | Assembly Biosciences, Inc. | 410,011 |
111,897 | 1 | Atara Biotherapeutics, Inc. | 1,573,272 |
77,466 | 1 | Avid Bioservices, Inc. | 1,658,160 |
68,663 | 1 | AxoGen, Inc. | 1,285,371 |
161,238 | 1 | Axonics, Inc. | 10,146,707 |
24,331 | 1,2 | BioCryst Pharmaceuticals, Inc. | 283,091 |
43,254 | 1 | Blueprint Medicines Corp. | 4,166,225 |
26,953 | 1 | CareDx, Inc. | 2,131,174 |
373,362 | 1 | Catalyst Pharmaceutical Partners, Inc. | 1,709,998 |
14,070 | 1 | Chinook Therapeutics, Inc. | 252,557 |
281,779 | 1 | Cross Country Healthcare, Inc. | 3,753,296 |
456,098 | 1 | Cytomx Therapeutics, Inc. | 4,269,077 |
89,550 | 1 | Denali Therapeutics, Inc. | 5,412,402 |
168,618 | 1 | Dicerna Pharmaceuticals, Inc. | 5,259,195 |
77,892 | 1 | Eagle Pharmaceuticals, Inc. | 3,180,330 |
41,131 | 1 | Editas Medicine, Inc. | 1,522,258 |
113,903 | 1 | Emergent BioSolutions, Inc. | 6,945,805 |
26,993 | 1 | Enanta Pharmaceuticals, Inc. | 1,369,625 |
88,954 | 1 | Endo International PLC | 509,706 |
81,173 | 1 | Evolent Health, Inc. | 1,758,207 |
70,764 | 1,2 | Evolus, Inc. | 644,660 |
17,688 | 1 | Fate Therapeutics, Inc. | 1,545,754 |
36,777 | 1 | Glaukos Corp. | 3,462,922 |
212,114 | 1 | GlycoMimetics, Inc. | 509,074 |
208,511 | 1 | Halozyme Therapeutics, Inc. | 10,415,124 |
56,267 | 1 | Harpoon Therapeutics, Inc. | 1,273,885 |
79,680 | 1 | Health Catalyst, Inc. | 4,613,472 |
2
Shares | Value | ||
COMMON STOCKS—continued | |||
Health Care—continued | |||
48,926 | 1 | Homology Medicines, Inc. | $331,229 |
83,889 | 1,2 | Hookipa Pharma, Inc. | 1,135,857 |
81,007 | 1 | IDEAYA Biosciences, Inc. | 1,664,694 |
256,300 | 1 | Immunogen, Inc. | 2,065,778 |
27,085 | 1 | Inari Medical, Inc. | 3,095,545 |
13,873 | 1 | Inogen, Inc. | 907,156 |
179,547 | 1 | Inovalon Holdings, Inc. | 5,424,115 |
87,643 | 1 | Inspire Medical Systems, Inc. | 20,755,615 |
117,325 | 1 | Intellia Therapeutics, Inc. | 9,007,040 |
316,943 | 1 | Ironwood Pharmaceuticals, Inc. | 3,499,051 |
16,911 | 1 | Karuna Therapeutics, Inc. | 1,877,290 |
98,095 | 1 | Krystal Biotech, Inc. | 7,792,667 |
96,760 | LeMaitre Vascular, Inc. | 5,076,997 | |
6,729 | 1 | LHC Group, Inc. | 1,401,449 |
2,866 | 1 | Ligand Pharmaceuticals, Inc., Class B | 418,121 |
84,062 | 1 | Magenta Therapeutics, Inc. | 979,322 |
225,219 | 1,2 | Mannkind Corp. | 1,029,251 |
34,505 | 1 | Medpace Holdings, Inc. | 5,854,808 |
45,557 | 1 | MeiraGTx Holdings PLC | 682,444 |
18,931 | 1 | Merit Medical Systems, Inc. | 1,204,012 |
46,059 | 1 | Natera, Inc. | 5,067,411 |
153,704 | 1 | NextCure, Inc. | 1,347,984 |
42,419 | 1 | NextGen Healthcare, Inc. | 776,692 |
81,501 | 1,2 | Omeros Corp. | 1,439,308 |
42,263 | 1 | Omnicell, Inc. | 6,128,980 |
82,203 | 1 | OptimizeRX Corp. | 4,147,963 |
269,632 | 1 | Organogenesis Holdings, Inc. | 6,028,972 |
34,780 | 1 | Orthofix Medical, Inc. | 1,542,493 |
68,967 | 1 | Pacira BioSciences, Inc. | 4,357,335 |
75,623 | 1 | PAVmed, Inc. | 345,597 |
32,654 | 1 | Pennant Group, Inc./The | 1,319,875 |
97,949 | 1 | Phreesia, Inc. | 5,068,861 |
18,291 | 1 | Precision Biosciences, Inc. | 169,923 |
46,601 | 1 | Prestige Consumer Healthcare, Inc. | 2,029,940 |
148,540 | 1,2 | Puma Biotechnology, Inc. | 1,464,604 |
88,137 | 1 | Radius Health, Inc. | 1,965,455 |
3,083 | 1 | Repligen Corp. | 652,702 |
13,174 | 1 | Rhythm Pharmaceuticals, Inc. | 284,031 |
158,801 | 1,2 | Savara, Inc. | 301,722 |
26,212 | 1 | Scholar Rock Holding Corp. | 847,958 |
144,208 | 1 | Select Medical Holdings Corp. | 5,439,526 |
225,611 | 1 | Selecta Biosciences, Inc. | 676,833 |
53,906 | 1 | Shockwave Medical, Inc. | 8,811,475 |
120,608 | 1 | SI-BONE, Inc. | 4,281,584 |
36,930 | 1 | Soliton, Inc. | 661,416 |
9,473 | 1 | Spero Therapeutics, Inc. | 130,349 |
155,950 | 1 | Stoke Therapeutics, Inc. | 5,037,185 |
64,742 | 1 | Supernus Pharmaceuticals, Inc. | 1,971,394 |
49,043 | 1 | Surgery Partners, Inc. | 2,363,873 |
161,133 | 1 | Sutro Biopharma, Inc. | 3,304,838 |
15,194 | 1 | Syneos Health, Inc. | 1,289,211 |
47,585 | 1 | TCR2 Therapeutics, Inc. | 1,080,655 |
3
Shares | Value | ||
COMMON STOCKS—continued | |||
Health Care—continued | |||
16,398 | 1 | Tenet Healthcare Corp. | $971,746 |
39,206 | 1,2 | The Joint Corp. | 2,175,149 |
23,699 | 1 | Translate Bio, Inc. | 550,291 |
154,114 | 1 | Travere Therapeutics, Inc. | 3,809,698 |
42,649 | 1 | Turning Point Therapeutics, Inc. | 3,251,133 |
207,043 | 1 | Vanda Pharmaceuticals, Inc. | 3,436,914 |
105,078 | 1 | Vericel Corp. | 6,558,969 |
128,911 | 1 | Vocera Communications, Inc. | 4,662,711 |
196,414 | 1,2 | Voyager Therapeutics, Inc. | 946,716 |
128,369 | 1 | Xencor, Inc. | 5,463,385 |
59,639 | 1 | Y-mAbs Therapeutics, Inc. | 1,793,345 |
TOTAL | 285,084,255 | ||
Industrials—13.2% | |||
95,996 | Advanced Drainage System, Inc. | 10,718,913 | |
6,821 | 1 | Aerovironment, Inc. | 752,834 |
176,984 | Apogee Enterprises, Inc. | 6,217,448 | |
103,228 | 1 | Atkore, Inc. | 8,080,688 |
107,990 | 1 | Atlas Air Worldwide Holdings, Inc. | 7,333,601 |
119,794 | Boise Cascade Co. | 7,992,656 | |
81,857 | 1 | Builders Firstsource, Inc. | 3,983,980 |
113,645 | Covanta Holding Corp. | 1,709,221 | |
11,435 | CSW Industrials, Inc. | 1,548,413 | |
163,237 | 1 | Echo Global Logistics, Inc. | 5,337,850 |
12,781 | Exponent, Inc. | 1,231,194 | |
108,824 | 1 | Franklin Covey Co. | 3,323,485 |
64,084 | 1 | Fuelcell Energy, Inc. | 622,256 |
99,652 | 1 | GMS, Inc. | 4,355,789 |
113,267 | Heidrick & Struggles International, Inc. | 4,791,194 | |
13,253 | Helios Technologies, Inc. | 957,927 | |
12,375 | 1 | Herc Holdings, Inc. | 1,306,800 |
196,159 | 1 | Mistras Group, Inc. | 2,183,250 |
303,184 | 1 | MRC Global, Inc. | 2,855,993 |
55,719 | 1 | MYR Group, Inc. | 4,340,510 |
67,583 | 1 | Plug Power, Inc. | 1,926,791 |
90,447 | Primoris Services Corp. | 2,953,999 | |
18,791 | 1 | Proto Labs, Inc. | 2,105,719 |
46,520 | 1 | REV Group, Inc. | 848,525 |
73,520 | Rexnord Corp. | 3,670,854 | |
3,869 | 1 | Saia, Inc. | 907,280 |
17,159 | 1 | Siteone Landscape Supply, Inc. | 3,077,981 |
21,596 | Tennant Co. | 1,704,140 | |
96,905 | 1 | TriNet Group, Inc. | 7,627,393 |
8,632 | UFP Industries, Inc. | 725,433 | |
199,195 | 1 | Upwork, Inc. | 9,174,922 |
88,603 | Werner Enterprises, Inc. | 4,096,117 | |
TOTAL | 118,463,156 | ||
Information Technology—20.6% | |||
18,820 | Advanced Energy Industries, Inc. | 2,076,034 | |
96,342 | 1 | Altair Engineering, Inc. | 6,262,230 |
59,186 | 1 | Ambarella, Inc. | 5,770,043 |
44,606 | Amkor Technology, Inc. | 901,933 | |
3,731 | 1,2 | Appian Corp. | 452,123 |
4
Shares | Value | ||
COMMON STOCKS—continued | |||
Information Technology—continued | |||
192,411 | 1 | Avaya Holdings Corp. | $5,535,664 |
142,936 | 1 | Axcelis Technologies, Inc. | 5,936,132 |
64,752 | 1 | Blackbaud, Inc. | 4,605,162 |
151,936 | 1 | Box, Inc. | 3,236,237 |
24,323 | 1 | Brightcove, Inc. | 353,170 |
103,610 | 1 | Cambium Networks Corp. | 6,216,600 |
150,254 | 1 | ChannelAdvisor Corp. | 3,177,872 |
88,241 | 1,2 | Coda Octopus Group, Inc. | 705,928 |
49,696 | 1 | Cohu, Inc. | 1,988,337 |
278,777 | 1 | Commvault Systems, Inc. | 19,377,789 |
10,270 | 1 | Digital Turbine, Inc. | 774,666 |
52,613 | 1 | Domo, Inc. | 3,382,490 |
106,085 | Evertec, Inc. | 4,232,792 | |
21,248 | 1 | Evo Payments, Inc. | 605,781 |
33,385 | 1 | Exlservice Holding, Inc. | 3,084,106 |
258,407 | 1 | Extreme Networks, Inc. | 2,940,672 |
123,838 | 1 | FormFactor, Inc. | 4,848,258 |
13,797 | 1 | II-VI, Inc. | 926,331 |
16,431 | 1 | Impinj, Inc. | 779,815 |
91,492 | 1 | j2 Global, Inc. | 11,070,532 |
7,150 | 1 | LiveRamp Holdings, Inc. | 350,207 |
170,989 | 1 | MA-COM Technology Solutions Holdings, Inc. | 9,679,687 |
40,438 | 1 | OSI Systems, Inc. | 3,905,098 |
61,776 | 1 | Plantronics, Inc. | 2,470,422 |
9,128 | Power Integrations, Inc. | 755,890 | |
36,182 | QAD, Inc. | 2,557,706 | |
202,357 | 1 | SailPoint Technologies Holding | 9,881,092 |
172,715 | 1 | Secureworks Corp. | 2,247,022 |
47,216 | 1 | Semtech Corp. | 3,198,412 |
39,097 | 1 | Sitime Corp. | 3,618,427 |
55,343 | 1 | SMART Global Holdings, Inc. | 2,554,079 |
126,143 | 1 | SPS Commerce, Inc. | 12,922,089 |
5,435 | 1 | Synaptics, Inc. | 760,193 |
15,918 | 1 | Tenable Holdings, Inc. | 596,845 |
57,704 | TTEC Holdings, Inc. | 5,870,228 | |
24,887 | 1 | Ultra Clean Holdings, Inc. | 1,270,979 |
161,697 | 1,2 | Veritone, Inc. | 3,900,132 |
163,745 | 1 | Workiva, Inc. | 15,392,030 |
206,829 | 1 | Zuora, Inc. | 3,350,630 |
TOTAL | 184,521,865 | ||
Materials—2.7% | |||
132,089 | 1 | Koppers Holdings, Inc. | 4,390,638 |
127,187 | Louisiana-Pacific Corp. | 8,379,079 | |
54,821 | Myers Industries, Inc. | 1,236,762 | |
86,100 | 1,4 | Rentech, Inc. | 0 |
103,128 | 1 | Ryerson Holding Corp. | 1,637,673 |
142,514 | Trinseo SA | 8,823,042 | |
TOTAL | 24,467,194 | ||
Real Estate—3.4% | |||
24,903 | 1,2 | eXp World Holdings, Inc. | 855,667 |
61,796 | National Storage Affiliates Trust | 2,808,010 | |
18,301 | Plymouth Industrial REIT, Inc. | 341,131 |
5
Shares | Value | ||
COMMON STOCKS—continued | |||
Real Estate—continued | |||
248,369 | RMR Group, Inc./The | $9,830,445 | |
47,953 | STAG Industrial, Inc. | 1,750,764 | |
46,172 | Terreno Realty Corp. | 2,979,017 | |
1,033,094 | Uniti Group, Inc. | 11,777,272 | |
TOTAL | 30,342,306 | ||
Utilities—0.4% | |||
18,605 | California Water Service Group | 1,093,044 | |
9,727 | Chesapeake Utilities Corp. | 1,152,844 | |
36,698 | Clearway Energy, Inc. | 975,433 | |
TOTAL | 3,221,321 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $686,664,412) | 881,959,593 | ||
INVESTMENT COMPANIES—3.4% | |||
10,196,893 | Federated Hermes Government Obligations Fund, Premier Shares, 0.02%5 | 10,196,893 | |
19,969,784 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.05%5 | 19,973,778 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $30,170,671) | 30,170,671 | ||
TOTAL INVESTMENT IN SECURITIES—101.7% (IDENTIFIED COST $716,835,083) | 912,130,264 | ||
OTHER ASSETS AND LIABILITIES - NET—(1.7)%6 | (15,063,025) | ||
TOTAL NET ASSETS—100% | $897,067,239 |
6
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 the affiliated companies during the period ended April 30, 2021, were as follows:
Value as of 7/31/2020 | Purchases at Cost* | Proceeds from Sales* | Change in Unrealized Appreciation/ Depreciation | Net Realized Gain/ (Loss)* | Value as of 4/30/2021 | Shares Held as of 4/30/2021 | Dividend Income* | |
Consumer Discretionary: | ||||||||
Grid Dynamics Holdings, Inc | $— | $2,365,969 | $— | $(209,873) | $— | $2,156,096 | 149,625 | $— |
Lovesac Co./The | $872,806 | $2,808,868 | $— | $2,300,016 | $— | $5,981,690 | 81,639 | $— |
Wingstop, Inc.** | $19,605,937 | $526,838 | $(16,871,706) | $(9,020,808) | $7,255,446 | $1,495,707 | 9,442 | $191,968 |
Financials: | ||||||||
StepStone Group, Inc. | $— | $2,182,710 | $— | $30,408 | $— | $2,213,118 | 66,460 | $1,178 |
Health Care: | ||||||||
Amphastar Pharmaceuticals, Inc. | $— | $686,809 | $— | $(98,724) | $— | $588,085 | 33,798 | $— |
AnaptysBio, Inc.** | $5,832,007 | $— | $(6,801,732) | $62,697 | $2,285,145 | $1,378,117 | 59,020 | $— |
Rhythm Pharmaceuticals, Inc. | $— | $269,280 | $— | $14,751 | $— | $284,031 | 13,174 | $— |
Translate Bio, Inc. | $— | $5,121,820 | $(3,720,273) | $19,975 | $(871,231) | $550,291 | 23,699 | $— |
Affiliated Issuers no longer in the portfolio at period end | $5,869,250 | $4,423,779 | $(12,632,427) | $(418,586) | $2,757,984 | $— | — | $— |
TOTAL OF AFFILIATED COMPANIES TRANSACTIONS | $32,180,000 | $18,386,073 | $(40,026,138) | $(7,320,144) | $11,427,344 | $14,647,135 | 436,857 | $193,146 |
* | A portion of the amount shown was recorded when the Fund no longer had ownership of at least 5% of the voting shares. |
** | At April 30, 2021, the Fund no longer has ownership of at least 5% of the voting shares. |
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, 2021, were as follows:
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares* | Total of Affiliated Transactions | |
Value as of 7/31/2020 | $35,185,159 | $62,871,883 | $98,057,042 |
Purchases at Cost | $110,934,818 | $230,478,550 | $341,413,368 |
Proceeds from Sales | $(135,923,084) | $(273,371,986) | $(409,295,070) |
Change in Unrealized Appreciation/Depreciation | N/A | $— | $— |
Net Realized Gain/(Loss) | N/A | $(4,669) | $(4,669) |
Value as of 4/30/2021 | $10,196,893 | $19,973,778 | $30,170,671 |
Shares Held as of 4/30/2021 | 10,196,893 | 19,969,784 | 30,166,677 |
Dividend Income | $8,230 | $35,105 | $43,335 |
* | 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, 2021, securities subject to this type of arrangement and related collateral were as follows: |
Market Value of Securities Loaned | Collateral Received |
$13,125,360 | $13,085,893 |
3 | Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or availing of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At April 30, 2021, these restricted securities amounted to $3,406,466, which represented 0.4% of total net assets. |
Security | Acquisition Date | Cost | Value |
XPEL, Inc. | 10/12/2020 | $2,211,157 | $3,406,466 |
4 | 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”). |
5 | 7-day net yield. |
6 | 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, 2021.
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 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, 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 | |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | $857,403,679 | $— | $0 | $857,403,679 |
International | 24,555,914 | — | — | 24,555,914 |
Investment Companies | 30,170,671 | — | — | 30,170,671 |
TOTAL SECURITIES | $912,130,264 | $— | $0 | $912,130,264 |
The following acronym(s) are used throughout this portfolio: | ||
REIT | —Real Estate Investment Trust |