United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-21904
(Investment Company Act File Number)
Federated Hermes MDT Series
_______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, Pennsylvania 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
Peter J. Germain, Esquire
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 07/31/21
Date of Reporting Period: 07/31/21
Item 1. | Reports to Stockholders |
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/img194f5b111.gif)
Share Class | Ticker | A | QAACX | C | QCACX | Institutional | QIACX | R6 | QKACX |
Federated Hermes MDT All Cap Core Fund
A Portfolio of Federated Hermes MDT Series
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/donahuechrissigsmall.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/fmaccar37309.jpg)
1 Year | 5 Years | 10 Years | |
Class A Shares | 30.78% | 16.63% | 14.39% |
Class C Shares | 36.37% | 17.08% | 14.33% |
Institutional Shares | 38.83% | 18.31% | 15.37% |
Class R6 Shares4 | 38.84% | 18.29% | 14.93% |
R3000 | 38.73% | 17.36% | 15.16% |
MLBFA | 36.72% | 15.80% | 13.73% |
Sector Composition | Percentage of Total Net Assets |
Information Technology | 27.2% |
Health Care | 14.0% |
Financials | 12.3% |
Consumer Discretionary | 11.5% |
Communication Services | 10.0% |
Industrials | 8.5% |
Consumer Staples | 5.5% |
Materials | 3.4% |
Real Estate | 3.0% |
Energy | 1.4% |
Utilities | 1.3% |
Cash Equivalents2 | 1.7% |
Other Assets and Liabilities—Net3 | 0.2% |
TOTAL | 100% |
1 | Except for Cash Equivalents and Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
2 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing cash collateral for securities lending. |
3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares | Value | ||
COMMON STOCKS— 98.1% | |||
Communication Services— 10.0% | |||
13,395 | Activision Blizzard, Inc. | $1,120,090 | |
9,446 | 1 | Alphabet, Inc., Class A | 25,452,530 |
81,453 | 1 | Altice USA, Inc. | 2,503,051 |
65,486 | 1 | Cars.com, Inc. | 791,071 |
189 | 1 | Charter Communications, Inc. | 140,625 |
13,344 | Electronic Arts, Inc. | 1,921,002 | |
11,705 | 1 | Facebook, Inc. | 4,170,492 |
2,955 | 1 | Netflix, Inc. | 1,529,419 |
69,931 | News Corp., Inc., Class A | 1,722,401 | |
14,846 | 1 | Pinterest, Inc. | 874,429 |
10,893 | 1 | Take-Two Interactive Software, Inc. | 1,889,064 |
36,970 | Verizon Communications, Inc. | 2,062,187 | |
TOTAL | 44,176,361 | ||
Consumer Discretionary— 11.5% | |||
5,124 | Advance Auto Parts, Inc. | 1,086,595 | |
3,295 | 1 | Amazon.com, Inc. | 10,964,409 |
1,585 | 1 | AutoZone, Inc. | 2,573,358 |
8,667 | 1 | Burlington Stores, Inc. | 2,901,712 |
2,553 | 1 | Cooper-Standard Holding, Inc. | 66,506 |
4,789 | 1 | CROCs, Inc. | 650,394 |
3,997 | Dick’s Sporting Goods, Inc. | 416,248 | |
10,690 | Domino’s Pizza, Inc. | 5,617,488 | |
3,282 | 1 | Five Below, Inc. | 638,086 |
35,900 | 1 | Ford Motor Co. | 500,805 |
53,197 | 1 | Goodyear Tire & Rubber Co. | 835,725 |
7,769 | Home Depot, Inc. | 2,549,708 | |
1,839 | Kontoor Brands, Inc. | 101,844 | |
2,035 | L Brands, Inc. | 162,942 | |
2,114 | 1 | LGI Homes, Inc. | 361,283 |
14,470 | Lowe’s Cos., Inc. | 2,788,224 | |
169,981 | 1 | Macy’s, Inc. | 2,889,677 |
7,196 | McDonald’s Corp. | 1,746,541 | |
2,682 | Nike, Inc., Class B | 449,262 | |
7,463 | 1 | O’Reilly Automotive, Inc. | 4,506,458 |
14,148 | 1 | SeaWorld Entertainment, Inc. | 670,757 |
2,668 | Starbucks Corp. | 323,975 | |
2,306 | 1 | Tesla, Inc. | 1,584,683 |
834 | Wingstop, Inc. | 142,873 | |
17,573 | 1 | YETI Holdings, Inc. | 1,692,807 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Consumer Discretionary— continued | |||
37,039 | Yum! Brands, Inc. | $4,866,554 | |
TOTAL | 51,088,914 | ||
Consumer Staples— 5.5% | |||
36,107 | 1 | BJ’s Wholesale Club Holdings, Inc. | 1,828,459 |
72,342 | Colgate-Palmolive Co. | 5,751,189 | |
5,439 | Costco Wholesale Corp. | 2,337,247 | |
9,374 | Hershey Foods Corp. | 1,676,821 | |
7,602 | Molson Coors Beverage Company, Class B | 371,662 | |
18,951 | PepsiCo, Inc. | 2,974,359 | |
95,231 | Philip Morris International, Inc. | 9,531,671 | |
TOTAL | 24,471,408 | ||
Energy— 1.4% | |||
4,297 | 1 | Cheniere Energy, Inc. | 364,944 |
14,278 | Continental Resources, Inc. | 487,594 | |
46,821 | EOG Resources, Inc. | 3,411,378 | |
17,376 | Helmerich & Payne, Inc. | 498,170 | |
63,055 | Marathon Oil Corp. | 730,808 | |
7,087 | Marathon Petroleum Corp. | 391,344 | |
6,339 | Targa Resources, Inc. | 266,935 | |
TOTAL | 6,151,173 | ||
Financials— 12.3% | |||
765 | 1 | Alleghany Corp. | 507,271 |
40,855 | Allstate Corp. | 5,313,193 | |
57,314 | Ally Financial, Inc. | 2,943,647 | |
130,312 | Bank of New York Mellon Corp. | 6,688,915 | |
11,854 | Equitable Holdings, Inc. | 365,933 | |
5,368 | Fidelity National Financial, Inc. | 239,466 | |
35,342 | Interactive Brokers Group, Inc., Class A | 2,186,256 | |
310 | 1 | Markel Corp. | 373,913 |
12,712 | MSCI, Inc., Class A | 7,575,844 | |
13,379 | NASDAQ, Inc. | 2,498,261 | |
43,356 | Northern Trust Corp. | 4,892,725 | |
37,749 | Prudential Financial, Inc. | 3,785,470 | |
1,662 | Signature Bank | 377,224 | |
87,929 | State Street Corp. | 7,662,133 | |
24,637 | The Travelers Cos., Inc. | 3,668,942 | |
40,471 | Tradeweb Markets, Inc. | 3,510,050 | |
38,383 | Zions Bancorporation, N.A. | 2,001,673 | |
TOTAL | 54,590,916 | ||
Health Care— 14.0% | |||
32,266 | AbbVie, Inc. | 3,752,536 | |
23,240 | Amgen, Inc. | 5,613,390 | |
40,396 | 1 | AnaptysBio, Inc. | 928,300 |
6,580 | Anthem, Inc. | 2,526,786 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Health Care— continued | |||
47,299 | 1 | Avantor, Inc. | $1,777,496 |
1,025 | 1 | Biohaven Pharmaceutical Holding Co. Ltd. | 129,160 |
5,128 | Cerner Corp. | 412,240 | |
15,619 | CVS Health Corp. | 1,286,381 | |
14,814 | 1 | Davita, Inc. | 1,781,384 |
6,122 | 1 | Envista Holdings Corp. | 263,736 |
3,975 | Humana, Inc. | 1,692,794 | |
26,976 | 1 | IQVIA Holdings, Inc. | 6,681,955 |
10,787 | 1 | Jazz Pharmaceuticals PLC. | 1,828,612 |
25,357 | Johnson & Johnson | 4,366,475 | |
38,540 | McKesson Corp. | 7,855,608 | |
50,137 | Merck & Co., Inc. | 3,854,031 | |
4,943 | 1 | Moderna, Inc. | 1,747,845 |
37,635 | 1 | Myriad Genetics, Inc. | 1,190,395 |
6,423 | 1 | Progyny, Inc. | 357,697 |
5,032 | 1 | Shockwave Medical, Inc. | 915,824 |
3,995 | 1 | United Therapeutics Corp. | 726,810 |
10,911 | 1 | Veeva Systems, Inc. | 3,630,199 |
13,106 | 1 | Vertex Pharmaceuticals, Inc. | 2,641,907 |
816 | 1 | Waters Corp. | 318,085 |
28,585 | Zoetis, Inc. | 5,794,180 | |
TOTAL | 62,073,826 | ||
Industrials— 8.5% | |||
10,871 | AGCO Corp. | 1,436,168 | |
16,108 | Allegion PLC | 2,200,353 | |
18,699 | 1 | Astronics Corp. | 319,379 |
5,977 | 1 | Avis Budget Group, Inc. | 494,716 |
57,393 | Carrier Global Corp. | 3,170,963 | |
28,412 | 1 | CIRCOR International, Inc. | 876,226 |
2,880 | Flowserve Corp. | 121,219 | |
12,880 | Fortune Brands Home & Security, Inc. | 1,255,414 | |
5,908 | 1 | Generac Holdings, Inc. | 2,477,579 |
21,775 | 1 | IAA Spinco, Inc. | 1,316,952 |
117,749 | 1 | KAR Auction Services, Inc. | 1,940,504 |
5,425 | Lennox International, Inc. | 1,787,158 | |
1,213 | Manpower, Inc. | 143,838 | |
37,452 | Masco Corp. | 2,236,259 | |
134,208 | Otis Worldwide Corp. | 12,018,326 | |
37,735 | Ryder System, Inc. | 2,873,520 | |
24,178 | Spirit AeroSystems Holdings, Inc., Class A | 1,044,731 | |
11,956 | 1 | SPX Corp. | 796,987 |
3,051 | United Parcel Service, Inc. | 583,839 | |
2,779 | 1 | XPO Logistics, Inc. | 385,419 |
TOTAL | 37,479,550 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Information Technology— 27.2% | |||
2,339 | 1 | Adobe, Inc. | $1,453,993 |
16,358 | Alliance Data Systems Corp. | 1,525,383 | |
6,095 | 1 | Ambarella, Inc. | 600,297 |
107,832 | Apple, Inc. | 15,728,376 | |
16,812 | Applied Materials, Inc. | 2,352,503 | |
6,182 | 1 | Arista Networks, Inc. | 2,351,571 |
35,739 | 1 | Arrow Electronics, Inc. | 4,237,573 |
10,232 | 1 | Asana, Inc. | 727,086 |
1,652 | 1 | Atlassian Corp. PLC | 537,098 |
12,438 | Bentley Systems, Inc. | 756,355 | |
8,490 | Broadcom, Inc. | 4,121,046 | |
21,864 | 1 | Cirrus Logic, Inc. | 1,805,748 |
2,221 | 1 | CloudFlare, Inc. | 263,477 |
9,243 | 1 | Commvault Systems, Inc. | 698,678 |
13,421 | 1 | Crowdstrike Holdings, Inc. | 3,403,700 |
4,803 | 1 | Datadog, Inc. | 531,692 |
8,511 | 1 | Dropbox, Inc. | 268,011 |
108,883 | 1 | DXC Technology Co. | 4,353,142 |
19,101 | 1 | EPAM Systems, Inc. | 10,692,740 |
9,896 | 1 | FleetCor Technologies, Inc. | 2,555,345 |
28,488 | 1 | Fortinet, Inc. | 7,755,573 |
1,816 | 1 | Gartner, Inc., Class A | 480,750 |
17,451 | Hewlett Packard Enterprise Co. | 253,040 | |
50,473 | HP, Inc. | 1,457,156 | |
9,288 | 1 | HubSpot, Inc. | 5,535,834 |
46,303 | Intel Corp. | 2,487,397 | |
8,352 | 1 | MA-COM Technology Solutions Holdings, Inc. | 515,485 |
5,562 | Mastercard, Inc. | 2,146,598 | |
45,610 | Microsoft Corp. | 12,994,745 | |
6,681 | 1 | Nutanix, Inc. | 240,650 |
28,612 | NVIDIA Corp. | 5,579,054 | |
28,048 | Oracle Corp. | 2,444,103 | |
5,230 | 1 | Palo Alto Networks, Inc. | 2,087,031 |
21,076 | Paychex, Inc. | 2,398,870 | |
9,396 | 1 | Paylocity Corp. | 1,949,294 |
15,923 | 1 | PayPal Holdings, Inc. | 4,387,264 |
40,911 | 1 | Plantronics, Inc. | 1,276,014 |
37,764 | Qualcomm, Inc. | 5,657,047 | |
66,109 | Western Union Co. | 1,534,390 | |
19,682 | Xerox Holdings Corp. | 474,927 | |
TOTAL | 120,619,036 | ||
Materials— 3.4% | |||
83,199 | 1 | Alcoa Corp. | 3,340,440 |
46,545 | 1 | Allegheny Technologies, Inc. | 955,569 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Materials— continued | |||
51,721 | 1 | Berry Global Group, Inc. | $3,325,143 |
138,595 | Chemours Co./The | 4,608,284 | |
34,432 | Dow, Inc. | 2,140,293 | |
2,676 | 1 | Ingevity Corp. | 227,299 |
2,163 | RPM International, Inc. | 187,294 | |
TOTAL | 14,784,322 | ||
Real Estate— 3.0% | |||
11,565 | Coresite Realty Corp. | 1,598,399 | |
967 | Crown Castle International Corp. | 186,718 | |
10,460 | Extra Space Storage, Inc. | 1,821,504 | |
12,177 | Iron Mountain, Inc. | 532,865 | |
76,810 | Macerich Co. (The) | 1,252,003 | |
32,263 | National Storage Affiliates Trust | 1,747,687 | |
10,197 | Public Storage | 3,186,359 | |
7,255 | SBA Communications, Corp. | 2,473,882 | |
8,122 | SL Green Realty Corp. | 604,764 | |
TOTAL | 13,404,181 | ||
Utilities— 1.3% | |||
2,865 | American Electric Power Co., Inc. | 252,464 | |
2,309 | Entergy Corp. | 237,642 | |
48,448 | Exelon Corp. | 2,267,366 | |
37,132 | OGE Energy Corp. | 1,253,205 | |
29,350 | Public Service Enterprises Group, Inc. | 1,826,451 | |
TOTAL | 5,837,128 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $315,455,980) | 434,676,815 | ||
INVESTMENT COMPANY— 1.7% | |||
7,659,010 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.02%2 (IDENTIFIED COST $7,662,074) | 7,662,074 | |
TOTAL INVESTMENT IN SECURITIES—99.8% (IDENTIFIED COST $323,118,054)3 | 442,338,889 | ||
OTHER ASSETS AND LIABILITIES - NET—0.2%4 | 771,266 | ||
TOTAL NET ASSETS—100% | $443,110,155 |
Value as of 7/31/2020 | Purchases at Cost* | Proceeds from Sales* | |
Consumer Discretionary: | |||
Wingstop, Inc.** | $3,630,781 | $— | $(3,030,488) |
Health Care: | |||
AnaptysBio, Inc.** | $759,600 | $— | $(41,091) |
TOTAL OF AFFILIATED COMPANIES TRANSACTIONS | $4,390,381 | $— | $(3,071,579) |
Change in Unrealized Appreciation/ Depreciation* | Net Realized Gain/ (Loss)* | Value as of 7/31/2021 | Shares Held as of 7/31/2021 | Dividend Income* |
$(757,014) | $299,594 | $142,873 | 834 | $101,373 |
$197,277 | $12,514 | $928,300 | 40,396 | $— |
$(559,737) | $312,108 | $1,071,173 | 41,230 | $101,373 |
* | A portion of the amount shown may have been recorded when the Fund did not have ownership of at least 5% of the voting shares. |
** | At July 31, 2021, the Fund no longer has ownership of at least 5% voting shares. |
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 | $7,296,777 | $5,679,483 | $12,976,260 |
Purchases at Cost | $16,818,480 | $142,155,254 | $158,973,734 |
Proceeds from Sales | $(24,115,257) | $(140,173,771) | $(164,289,028) |
Change in Unrealized Appreciation/ Depreciation | N/A | $521 | $521 |
Net Realized Gain/(Loss) | N/A | $587 | $587 |
Value as of 7/31/2021 | $— | $7,662,074 | $7,662,074 |
Shares Held as of 7/31/2021 | — | 7,659,010 | 7,659,010 |
Dividend Income | $1,494 | $5,982 | $7,476 |
* | 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 | 7-day net yield. |
3 | The cost of investments for federal tax purposes amounts to $323,255,042. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $31.77 | $29.90 | $30.01 | $24.95 | $21.77 |
Income From Investment Operations: | |||||
Net investment income (loss) | 0.081 | 0.131 | 0.161 | 0.091 | 0.26 |
Net realized and unrealized gain (loss) | 11.90 | 2.69 | 1.81 | 5.08 | 3.11 |
Total From Investment Operations | 11.98 | 2.82 | 1.97 | 5.17 | 3.37 |
Less Distributions: | |||||
Distributions from net investment income | (0.12) | (0.11) | (0.07) | (0.11) | (0.19) |
Distributions from net realized gain | (0.88) | (0.84) | (2.01) | — | — |
Total Distributions | (1.00) | (0.95) | (2.08) | (0.11) | (0.19) |
Net Asset Value, End of Period | $42.75 | $31.77 | $29.90 | $30.01 | $24.95 |
Total Return2 | 38.40% | 9.66% | 7.80% | 20.78% | 15.56% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.04% | 1.04% | 1.08% | 1.36% | 1.38% |
Net investment income | 0.23% | 0.44% | 0.57% | 0.31% | 0.69% |
Expense waiver/reimbursement4 | 0.17% | 0.20% | 0.24% | 0.00%5 | 0.00%5 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $109,747 | $79,301 | $69,221 | $40,539 | $33,799 |
Portfolio turnover | 63% | 160% | 87% | 82% | 77% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Represents less than 0.01%. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $29.57 | $27.99 | $28.37 | $23.66 | $20.66 |
Income From Investment Operations: | |||||
Net investment income (loss) | (0.18)1 | (0.08)1 | (0.05)1 | (0.11)1 | (0.19) |
Net realized and unrealized gain (loss) | 11.04 | 2.50 | 1.68 | 4.82 | 3.23 |
Total From Investment Operations | 10.86 | 2.42 | 1.63 | 4.71 | 3.04 |
Less Distributions: | |||||
Distributions from net investment income | — | — | — | — | (0.04) |
Distributions from net realized gain | (0.88) | (0.84) | (2.01) | — | — |
Total Distributions | (0.88) | (0.84) | (2.01) | — | (0.04) |
Net Asset Value, End of Period | $39.55 | $29.57 | $27.99 | $28.37 | $23.66 |
Total Return2 | 37.37% | 8.86% | 6.96% | 19.91% | 14.72% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.79% | 1.79% | 1.85% | 2.09% | 2.13% |
Net investment income (loss) | (0.52)% | (0.31)% | (0.20)% | (0.41)% | (0.06)% |
Expense waiver/reimbursement4 | 0.16% | 0.21% | 0.24% | 0.00%5 | 0.00%5 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $38,028 | $31,030 | $32,178 | $39,625 | $36,440 |
Portfolio turnover | 63% | 160% | 87% | 82% | 77% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Represents less than 0.01%. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $32.22 | $30.29 | $30.37 | $25.24 | $22.02 |
Income From Investment Operations: | |||||
Net investment income (loss) | 0.191 | 0.221 | 0.251 | 0.161 | 0.39 |
Net realized and unrealized gain (loss) | 12.08 | 2.74 | 1.81 | 5.16 | 3.09 |
Total From Investment Operations | 12.27 | 2.96 | 2.06 | 5.32 | 3.48 |
Less Distributions: | |||||
Distributions from net investment income | (0.21) | (0.19) | (0.13) | (0.19) | (0.26) |
Distributions from net realized gain | (0.88) | (0.84) | (2.01) | — | — |
Total Distributions | (1.09) | (1.03) | (2.14) | (0.19) | (0.26) |
Net Asset Value, End of Period | $43.40 | $32.22 | $30.29 | $30.37 | $25.24 |
Total Return2 | 38.83% | 10.01% | 8.08% | 21.15% | 15.90% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.74% | 0.74% | 0.78% | 1.07% | 1.08% |
Net investment income | 0.52% | 0.73% | 0.87% | 0.57% | 1.01% |
Expense waiver/reimbursement4 | 0.21% | 0.25% | 0.29% | 0.00%5 | 0.00%5 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $283,822 | $243,490 | $215,799 | $95,290 | $52,169 |
Portfolio turnover | 63% | 160% | 87% | 82% | 77% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Represents less than 0.01%. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $31.62 | $29.75 | $29.89 | $24.85 | $21.46 |
Income From Investment Operations: | |||||
Net investment income (loss) | 0.202 | 0.212 | 0.232 | 0.182 | 0.21 |
Net realized and unrealized gain (loss) | 11.84 | 2.69 | 1.79 | 5.06 | 3.18 |
Total From Investment Operations | 12.04 | 2.90 | 2.02 | 5.24 | 3.39 |
Less Distributions: | |||||
Distributions from net investment income | (0.22) | (0.19) | (0.15) | (0.20) | — |
Distributions from net realized gain | (0.88) | (0.84) | (2.01) | — | — |
Total Distributions | (1.10) | (1.03) | (2.16) | (0.20) | — |
Net Asset Value, End of Period | $42.56 | $31.62 | $29.75 | $29.89 | $24.85 |
Total Return3 | 38.84% | 10.00% | 8.08% | 21.17% | 15.80% |
Ratios to Average Net Assets: | |||||
Net expenses4 | 0.73% | 0.73% | 0.81% | 1.02% | 1.07% |
Net investment income | 0.54% | 0.75% | 0.78% | 0.65% | 0.95% |
Expense waiver/reimbursement5 | 0.15% | 0.17% | 0.18% | 0.00%6 | 0.00%6 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $11,513 | $8,571 | $9,183 | $20,425 | $17,363 |
Portfolio turnover | 63% | 160% | 87% | 82% | 77% |
1 | Prior to September 1, 2016, the Fund’s Class R6 Shares were designated as Class R Shares. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
6 | Represents less than 0.01%. |
July 31, 2021
Assets: | |
Investment in securities, at value including $7,662,074 of investment in an affiliated holding and $1,071,173 of investment in affiliated companies* (identified cost $323,118,054) | $442,338,889 |
Income receivable | 219,354 |
Income receivable from an affiliated holding | 292 |
Receivable for investments sold | 1,828,085 |
Receivable for shares sold | 953,045 |
Total Assets | 445,339,665 |
Liabilities: | |
Payable for investments purchased | 1,072,089 |
Payable for shares redeemed | 933,393 |
Payable for investment adviser fee (Note 5) | 13,665 |
Payable for administrative fee (Note 5) | 1,903 |
Payable for auditing fees | 26,300 |
Payable for transfer agent fees | 11,936 |
Payable for distribution services fee (Note 5) | 23,885 |
Payable for other service fees (Notes 2 and 5) | 40,390 |
Accrued expenses (Note 5) | 105,949 |
Total Liabilities | 2,229,510 |
Net assets for 10,339,095 shares outstanding | $443,110,155 |
Net Assets Consist of: | |
Paid-in capital | $268,404,039 |
Total distributable earnings (loss) | 174,706,116 |
Total Net Assets | $443,110,155 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($109,747,361 ÷ 2,567,424 shares outstanding), no par value, unlimited shares authorized | $42.75 |
Offering price per share (100/94.50 of $42.75) | $45.24 |
Redemption proceeds per share | $42.75 |
Class C Shares: | |
Net asset value per share ($38,027,995 ÷ 961,430 shares outstanding), no par value, unlimited shares authorized | $39.55 |
Offering price per share | $39.55 |
Redemption proceeds per share (99.00/100 of $39.55) | $39.15 |
Institutional Shares: | |
Net asset value per share ($283,822,071 ÷ 6,539,741 shares outstanding), no par value, unlimited shares authorized | $43.40 |
Offering price per share | $43.40 |
Redemption proceeds per share | $43.40 |
Class R6 Shares: | |
Net asset value per share ($11,512,728 ÷ 270,500 shares outstanding), no par value, unlimited shares authorized | $42.56 |
Offering price per share | $42.56 |
Redemption proceeds per share | $42.56 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31, 2021
Investment Income: | |
Dividends (including $107,355 received from affiliated companies and an affiliated holding*) | $5,077,009 |
Net income on securities loaned (includes $1,494 earned from an affiliated holding related to cash collateral balances*) (Note 2) | 88,863 |
TOTAL INCOME | 5,165,872 |
Expenses: | |
Investment adviser fee (Note 5) | 2,851,801 |
Administrative fee (Note 5) | 320,424 |
Custodian fees | 39,991 |
Transfer agent fees (Note 2) | 350,321 |
Directors’/Trustees’ fees (Note 5) | 3,329 |
Auditing fees | 27,800 |
Legal fees | 11,957 |
Portfolio accounting fees | 130,677 |
Distribution services fee (Note 5) | 256,572 |
Other service fees (Notes 2 and 5) | 312,940 |
Share registration costs | 73,590 |
Printing and postage | 38,338 |
Miscellaneous (Note 5) | 36,313 |
TOTAL EXPENSES | 4,454,053 |
Waiver and Reimbursements: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (603,073) |
Reimbursement of other operating expenses (Notes 2 and 5) | (185,157) |
TOTAL WAIVER AND REIMBURSEMENTS | (788,230) |
Net expenses | 3,665,823 |
Net investment income | 1,500,049 |
Realized and Unrealized Gain (Loss) on Investments: | |
Net realized gain on investments (including net realized gain of $312,695 on sales of investments in affiliated companies and an affiliated holding*) | 65,974,347 |
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $(559,216) on investments in affiliated companies and an affiliated holding*) | 66,920,393 |
Net realized and unrealized gain (loss) on investments | 132,894,740 |
Change in net assets resulting from operations | $134,394,789 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31 | 2021 | 2020 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $1,500,049 | $1,858,375 |
Net realized gain (loss) | 65,974,347 | 3,253,617 |
Net change in unrealized appreciation/depreciation | 66,920,393 | 24,231,474 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 134,394,789 | 29,343,466 |
Distributions to Shareholders: | ||
Class A Shares | (2,423,144) | (2,420,345) |
Class C Shares | (882,794) | (981,926) |
Institutional Shares | (8,071,148) | (7,530,512) |
Class R6 Shares | (290,075) | (293,094) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (11,667,161) | (11,225,877) |
Share Transactions: | ||
Proceeds from sale of shares | 138,525,280 | 138,101,946 |
Proceeds from shares issued in connection with the tax-free transfer of assets from PNC Multi-Factor All Cap Fund | — | 4,799,602 |
Net asset value of shares issued to shareholders in payment of distributions declared | 10,673,152 | 10,177,441 |
Cost of shares redeemed | (191,208,255) | (135,185,593) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (42,009,823) | 17,893,396 |
Change in net assets | 80,717,805 | 36,010,985 |
Net Assets: | ||
Beginning of period | 362,392,350 | 326,381,365 |
End of period | $443,110,155 | $362,392,350 |
Shares of the Fund Issued | Acquired Fund’s Net Assets Received | Unrealized Depreciation1 | Net Assets of the Fund Immediately Prior to Combination | Net Assets of the Fund Immediately After Combination |
158,091 | $4,799,602 | $481,958 | $334,525,804 | $339,325,406 |
1 | Unrealized Depreciation is included in the Net Assets Received amount shown above. |
Net investment income | $1,879,088 |
Net realized and unrealized gain on investments | 27,688,497 |
Net increase in net assets resulting from operations | $29,567,585 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $89,021 | $(20,328) |
Class C Shares | 30,281 | (4,494) |
Institutional Shares | 229,533 | (160,335) |
Class R6 Shares | 1,486 | — |
TOTAL | $350,321 | $(185,157) |
Other Service Fees Incurred | |
Class A Shares | $227,416 |
Class C Shares | 85,524 |
TOTAL | $312,940 |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 516,489 | $19,262,460 | 690,025 | $19,860,088 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | — | — | 69,799 | 2,108,622 |
Shares issued to shareholders in payment of distributions declared | 65,002 | 2,282,814 | 75,909 | 2,245,758 |
Shares redeemed | (510,501) | (18,302,996) | (654,712) | (18,099,902) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 70,990 | $3,242,278 | 181,021 | $6,114,566 |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 150,210 | $5,136,189 | 229,788 | $6,229,160 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | — | — | 5,925 | 167,267 |
Shares issued to shareholders in payment of distributions declared | 25,498 | 828,435 | 32,298 | 888,524 |
Shares redeemed | (263,607) | (8,987,701) | (368,127) | (9,700,529) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (87,899) | $(3,023,077) | (100,116) | $(2,415,578) |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 3,029,771 | $110,406,642 | 3,765,883 | $109,245,509 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | — | — | 82,367 | 2,523,713 |
Shares issued to shareholders in payment of distributions declared | 206,534 | 7,372,239 | 227,539 | 6,839,149 |
Shares redeemed | (4,253,413) | (160,052,945) | (3,642,257) | (103,350,480) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (1,017,108) | $(42,274,064) | 433,532 | $15,257,891 |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 101,756 | $3,719,989 | 96,159 | $2,767,189 |
Shares issued to shareholders in payment of distributions declared | 5,416 | 189,664 | 6,915 | 204,010 |
Shares redeemed | (107,736) | (3,864,613) | (140,698) | (4,034,682) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | (564) | $45,040 | (37,624) | $(1,063,483) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (1,034,581) | $(42,009,823) | 476,813 | $17,893,396 |
2021 | 2020 | |
Ordinary income1 | $7,381,835 | $5,661,147 |
Long-term capital gains | $4,285,326 | $5,564,730 |
1 | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Undistributed ordinary income1 | $39,831,151 |
Net unrealized appreciation | $119,083,847 |
Undistributed long-term capital gains | $15,791,118 |
1 | For tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings. |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Percentage of Average Daily Net Assets of Class | |
Class A Shares | 0.05% |
Class C Shares | 0.75% |
Distribution Services Fees Incurred | |
Class C Shares | $256,572 |
Purchases | $248,446,110 |
Sales | $302,981,491 |
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September 23, 2021
Beginning Account Value 2/1/2021 | Ending Account Value 7/31/2021 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,203.20 | $5.68 |
Class C Shares | $1,000 | $1,198.50 | $9.76 |
Institutional Shares | $1,000 | $1,204.90 | $4.05 |
Class R6 Shares | $1,000 | $1,205.00 | $3.99 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,019.64 | $5.21 |
Class C Shares | $1,000 | $1,015.92 | $8.95 |
Institutional Shares | $1,000 | $1,021.12 | $3.71 |
Class R6 Shares | $1,000 | $1,021.17 | $3.66 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.04% |
Class C Shares | 1.79% |
Institutional Shares | 0.74% |
Class R6 Shares | 0.73% |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: May 2006 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2016 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company; President of some of the Funds in the Federated Hermes Fund Family and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; President and CEO of Passport Research, Ltd.; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Hermes, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. and President, Technology, Federated Services Company. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee, 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: Chairman of the Board of Directors, 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 Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Director, Member of the Audit Committee, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor 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.; and Director and Vice Chair, Our Campaign for the Church Alive!, Inc. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity and Director, The Golisano Children’s Museum of Naples, Florida. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
Madelyn A. Reilly Birth Date: February 2, 1956 Trustee Indefinite Term Began serving: November 2020 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Senior Vice President for Legal Affairs, General Counsel and Secretary of the Board of Trustees, 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 Director of Risk Management and Associate General Counsel, 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 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, 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 Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: June 2006 | Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, 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 F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: June 2012 | Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Annual Evaluation of Adequacy and Effectiveness
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Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31421R205
CUSIP 31421R304
CUSIP 31421R718
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Share Class | Ticker | A | QABGX | C | QCBGX | Institutional | QIBGX | R6 | QKBGX |
Federated Hermes MDT Balanced Fund
A Portfolio of Federated Hermes MDT Series
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1 Year | 5 Years | 10 Years | |
Class A Shares | 16.53% | 10.32% | 8.98% |
Class C Shares | 21.37% | 10.74% | 8.95% |
Institutional Shares | 23.59% | 11.85% | 9.87% |
Class R6 Shares5 | 23.70% | 11.85% | 9.56% |
S&P 500 | 36.45% | 17.35% | 15.35% |
BAB | -0.70% | 3.13% | 3.35% |
Blended Index | 20.52% | 11.76% | 10.66% |
MA50-70 | 23.53% | 9.94% | 8.59% |
Portfolio Composition | Percentage of Total Net Assets |
Domestic Equity Securities | 57.0% |
Corporate Debt Securities | 10.3% |
International Equity Securities (including International Exchange-Traded Funds) | 8.9% |
Mortgage Core Fund | 3.0% |
High Yield Bond Core Fund | 2.7% |
U.S. Treasury Securities2 | 2.5% |
Bank Loan Core Fund | 2.0% |
Project and Trade Finance Core Fund | 1.5% |
Emerging Markets Core Fund | 1.3% |
Asset-Backed Securities | 0.9% |
Commercial Mortgage-Backed Securities | 0.8% |
Mortgage-Backed Securities | 0.3% |
Government Agency | 0.1% |
Municipal Bond3 | 0.0% |
Collateralized Mortgage Obligations3 | 0.0% |
Securities Lending Collateral4 | 0.1% |
Cash Equivalents5 | 7.8% |
Derivative Contracts3,6 | 0.0% |
Other Assets and Liabilities—Net7 | 0.8% |
TOTAL | 100% |
Sector Composition | Percentage of Equity Securities |
Information Technology | 26.2% |
Health Care | 13.8% |
Consumer Discretionary | 12.5% |
Financials | 12.1% |
Industrials | 9.5% |
Communication Services | 8.8% |
Consumer Staples | 5.8% |
Real Estate | 5.7% |
Materials | 3.1% |
Utilities | 1.3% |
Energy | 1.2% |
Total | 100% |
1 | See the Fund’s Prospectus and Statement of Additional Information for a description of the types of securities in which the Fund invests. As of the date specified above, the Fund owned shares of one or more affiliated investment companies. For purposes of this table, affiliated investment companies (other than an affiliated money market mutual fund) in which the Fund invested less than 10% of its net assets, are listed individually in the table. |
2 | Includes U.S. Treasuries pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding futures contracts. |
3 | Represents less than 0.1%. |
4 | Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. |
5 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing cash collateral for securities lending. |
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 and derivative contracts, less liabilities. See Statement of Assets and Liabilities. |
8 | Sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
Shares or Principal Amount | Value | ||
COMMON STOCKS— 57.9% | |||
Communication Services— 5.1% | |||
5,703 | Activision Blizzard, Inc. | $476,885 | |
2,376 | 1 | Alphabet, Inc., Class A | 6,402,203 |
9,730 | 1 | Altice USA, Inc. | 299,003 |
21,112 | 1 | Cars.com, Inc. | 255,033 |
348 | 1 | Charter Communications, Inc. | 258,929 |
3,811 | Electronic Arts, Inc. | 548,632 | |
2,382 | 1 | Facebook, Inc. | 848,707 |
6,754 | Lumen Technologies, Inc. | 84,222 | |
19,249 | News Corp., Inc., Class A | 474,103 | |
2,935 | 1 | Pinterest, Inc. | 172,872 |
2,310 | 1 | Take-Two Interactive Software, Inc. | 400,600 |
14,027 | Verizon Communications, Inc. | 782,426 | |
TOTAL | 11,003,615 | ||
Consumer Discretionary— 7.2% | |||
1,044 | Advance Auto Parts, Inc. | 221,391 | |
1,029 | 1 | Amazon.com, Inc. | 3,424,090 |
346 | 1 | AutoZone, Inc. | 561,755 |
2,632 | 1 | Burlington Stores, Inc. | 881,194 |
1,955 | 1 | Capri Holdings Ltd. | 110,086 |
440 | 1 | Cooper-Standard Holding, Inc. | 11,462 |
630 | 1 | CROCs, Inc. | 85,560 |
1,060 | Dick’s Sporting Goods, Inc. | 110,388 | |
3,306 | Domino’s Pizza, Inc. | 1,737,270 | |
1,149 | 1 | Five Below, Inc. | 223,388 |
24,635 | 1 | Ford Motor Co. | 343,658 |
2,558 | 1 | G-III Apparel Group Ltd. | 76,382 |
15,297 | 1 | Goodyear Tire & Rubber Co. | 240,316 |
3,667 | Home Depot, Inc. | 1,203,473 | |
755 | L Brands, Inc. | 60,453 | |
371 | 1 | LGI Homes, Inc. | 63,404 |
6,086 | Lowe’s Cos., Inc. | 1,172,711 | |
43,386 | 1 | Macy’s, Inc. | 737,562 |
2,000 | McDonald’s Corp. | 485,420 | |
2,144 | 1 | O’Reilly Automotive, Inc. | 1,294,633 |
3,062 | 1 | SeaWorld Entertainment, Inc. | 145,169 |
1,009 | Starbucks Corp. | 122,523 | |
623 | 1 | Tesla, Inc. | 428,126 |
1,003 | Wingstop, Inc. | 171,824 | |
4,331 | 1 | YETI Holdings, Inc. | 417,205 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Consumer Discretionary— continued | |||
10,540 | Yum! Brands, Inc. | $1,384,851 | |
TOTAL | 15,714,294 | ||
Consumer Staples— 3.4% | |||
1,691 | 2 | Albertsons Cos., Inc. | 36,526 |
6,671 | 1 | BJ’s Wholesale Club Holdings, Inc. | 337,819 |
271 | Coca-Cola Bottling Co. | 108,170 | |
26,085 | Colgate-Palmolive Co. | 2,073,757 | |
104 | Costco Wholesale Corp. | 44,691 | |
337 | Estee Lauder Cos., Inc., Class A | 112,501 | |
6,075 | Hershey Foods Corp. | 1,086,696 | |
5,083 | PepsiCo, Inc. | 797,777 | |
23,001 | Philip Morris International, Inc. | 2,302,170 | |
1,048 | 1 | Post Holdings, Inc. | 107,252 |
2,149 | Procter & Gamble Co. | 305,652 | |
TOTAL | 7,313,011 | ||
Energy— 0.7% | |||
13,000 | Continental Resources, Inc. | 443,950 | |
9,513 | EOG Resources, Inc. | 693,117 | |
5,348 | Helmerich & Payne, Inc. | 153,327 | |
21,158 | Marathon Oil Corp. | 245,222 | |
TOTAL | 1,535,616 | ||
Financials— 7.0% | |||
285 | 1 | Alleghany Corp. | 188,984 |
10,516 | Allstate Corp. | 1,367,606 | |
17,829 | Ally Financial, Inc. | 915,698 | |
36,583 | Bank of New York Mellon Corp. | 1,877,805 | |
242 | Evercore, Inc., Class A | 31,992 | |
15,952 | Huntington Bancshares, Inc. | 224,604 | |
9,463 | Interactive Brokers Group, Inc., Class A | 585,381 | |
3,357 | MSCI, Inc., Class A | 2,000,638 | |
4,743 | NASDAQ, Inc. | 885,660 | |
44,000 | New Residential Investment Corp. | 429,440 | |
11,430 | Northern Trust Corp. | 1,289,876 | |
6,902 | Prudential Financial, Inc. | 692,133 | |
932 | Santander Consumer USA Holdings, Inc. | 38,240 | |
23,831 | State Street Corp. | 2,076,633 | |
9,961 | The Travelers Cos., Inc. | 1,483,392 | |
9,566 | Tradeweb Markets, Inc. | 829,659 | |
5,580 | Zions Bancorporation, N.A. | 290,997 | |
TOTAL | 15,208,738 | ||
Health Care— 8.0% | |||
9,183 | AbbVie, Inc. | 1,067,983 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Health Care— continued | |||
4,945 | Amgen, Inc. | $1,194,415 | |
11,086 | 1 | AnaptysBio, Inc. | 254,756 |
1,318 | Anthem, Inc. | 506,125 | |
12,393 | 1 | Avantor, Inc. | 465,729 |
849 | 1 | Biohaven Pharmaceutical Holding Co. Ltd. | 106,983 |
580 | CIGNA Corp. | 133,104 | |
15,524 | 1 | Community Health Systems, Inc. | 206,780 |
3,813 | CVS Health Corp. | 314,039 | |
3,872 | 1 | Davita, Inc. | 465,608 |
953 | Eli Lilly & Co. | 232,056 | |
1,634 | 1 | Envista Holdings Corp. | 70,393 |
900 | Humana, Inc. | 383,274 | |
338 | 1 | IDEXX Laboratories, Inc. | 229,343 |
7,106 | 1 | IQVIA Holdings, Inc. | 1,760,156 |
2,525 | 1 | Jazz Pharmaceuticals PLC. | 428,038 |
7,106 | Johnson & Johnson | 1,223,653 | |
8,952 | McKesson Corp. | 1,824,686 | |
13,595 | Merck & Co., Inc. | 1,045,048 | |
2,015 | 1 | Moderna, Inc. | 712,504 |
7,854 | 1 | Myriad Genetics, Inc. | 248,422 |
3,787 | Pfizer, Inc. | 162,121 | |
1,738 | 1 | Progyny, Inc. | 96,789 |
1,239 | 1 | SAGE Therapeutics, Inc. | 54,181 |
1,169 | 1 | Shockwave Medical, Inc. | 212,758 |
432 | 1 | United Therapeutics Corp. | 78,594 |
3,644 | 1 | Veeva Systems, Inc. | 1,212,395 |
4,079 | 1 | Vertex Pharmaceuticals, Inc. | 822,245 |
191 | 1 | Waters Corp. | 74,454 |
8,612 | Zoetis, Inc. | 1,745,652 | |
TOTAL | 17,332,284 | ||
Industrials— 5.5% | |||
212 | Acuity Brands, Inc. | 37,180 | |
2,875 | AGCO Corp. | 379,816 | |
7,271 | Allegion PLC | 993,219 | |
1,980 | 1 | Avis Budget Group, Inc. | 163,885 |
16,827 | Carrier Global Corp. | 929,692 | |
7,124 | 1 | CIRCOR International, Inc. | 219,704 |
1,665 | Flowserve Corp. | 70,080 | |
3,032 | Fortune Brands Home & Security, Inc. | 295,529 | |
1,171 | 1 | Generac Holdings, Inc. | 491,070 |
5,025 | 1 | IAA Spinco, Inc. | 303,912 |
414 | Illinois Tool Works, Inc. | 93,841 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Industrials— continued | |||
32,966 | 1 | KAR Auction Services, Inc. | $543,280 |
2,523 | Lennox International, Inc. | 831,152 | |
9,134 | Masco Corp. | 545,391 | |
36,390 | Otis Worldwide Corp. | 3,258,724 | |
10,000 | Pitney Bowes, Inc. | 80,000 | |
9,727 | Ryder System, Inc. | 740,711 | |
6,409 | Spirit AeroSystems Holdings, Inc., Class A | 276,933 | |
7,730 | 1 | SPX Corp. | 515,282 |
2,704 | TransUnion | 324,642 | |
1,458 | 1 | TriNet Group, Inc. | 120,985 |
3,535 | United Parcel Service, Inc. | 676,458 | |
233 | 1 | XPO Logistics, Inc. | 32,315 |
614 | Xylem, Inc. | 77,272 | |
TOTAL | 12,001,073 | ||
Information Technology— 15.2% | |||
1,432 | 1 | Adobe, Inc. | 890,174 |
2,935 | Alliance Data Systems Corp. | 273,689 | |
1,705 | 1 | Ambarella, Inc. | 167,925 |
25,312 | Apple, Inc. | 3,692,008 | |
3,030 | Applied Materials, Inc. | 423,988 | |
1,785 | 1 | Arista Networks, Inc. | 678,996 |
7,214 | 1 | Arrow Electronics, Inc. | 855,364 |
3,790 | 1 | Asana, Inc. | 269,317 |
144 | 1 | Atlassian Corp. PLC | 46,817 |
3,305 | Bentley Systems, Inc. | 200,977 | |
1,613 | Broadcom, Inc. | 782,950 | |
4,701 | 1 | Cirrus Logic, Inc. | 388,256 |
298 | 1 | CloudFlare, Inc. | 35,352 |
2,931 | 1 | Commvault Systems, Inc. | 221,554 |
4,123 | 1 | Crowdstrike Holdings, Inc. | 1,045,634 |
322 | 1 | Datadog, Inc. | 35,645 |
2,333 | 1 | Dell Technologies, Inc. | 225,415 |
4,697 | 1 | Dropbox, Inc. | 147,909 |
28,217 | 1 | DXC Technology Co. | 1,128,116 |
5,463 | 1 | EPAM Systems, Inc. | 3,058,187 |
2,903 | 1 | FleetCor Technologies, Inc. | 749,613 |
7,164 | 1 | Fortinet, Inc. | 1,950,327 |
705 | 1 | Gartner, Inc., Class A | 186,635 |
14,151 | Hewlett Packard Enterprise Co. | 205,190 | |
10,855 | HP, Inc. | 313,384 | |
2,245 | 1 | HubSpot, Inc. | 1,338,065 |
9,807 | Intel Corp. | 526,832 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Information Technology— continued | |||
224 | Intuit, Inc. | $118,713 | |
3,825 | 1 | MA-COM Technology Solutions Holdings, Inc. | 236,079 |
3,271 | Mastercard, Inc. | 1,262,410 | |
11,281 | Microsoft Corp. | 3,214,070 | |
6,088 | NVIDIA Corp. | 1,187,099 | |
4,369 | Oracle Corp. | 380,715 | |
1,924 | 1 | Palo Alto Networks, Inc. | 767,772 |
10,932 | �� | Paychex, Inc. | 1,244,280 |
2,166 | 1 | Paylocity Corp. | 449,358 |
4,972 | 1 | PayPal Holdings, Inc. | 1,369,935 |
9,836 | 1 | Plantronics, Inc. | 306,785 |
9,835 | Qualcomm, Inc. | 1,473,283 | |
8,203 | Vishay Intertechnology, Inc. | 181,532 | |
31,056 | Western Union Co. | 720,810 | |
9,197 | Xerox Holdings Corp. | 221,924 | |
TOTAL | 32,973,084 | ||
Materials— 1.8% | |||
19,650 | 1 | Alcoa Corp. | 788,948 |
18,593 | 1 | Allegheny Technologies, Inc. | 381,714 |
13,951 | 1 | Berry Global Group, Inc. | 896,910 |
44,373 | Chemours Co./The | 1,475,402 | |
6,018 | Dow, Inc. | 374,079 | |
TOTAL | 3,917,053 | ||
Real Estate— 3.3% | |||
3,600 | American Campus Communities, Inc. | 181,116 | |
14,400 | American Homes 4 Rent | 604,800 | |
46,900 | 2 | Braemar Hotels & Resorts, Inc. | 239,190 |
24,600 | 1 | Chatham Lodging Trust | 302,088 |
3,500 | Duke Realty Corp. | 178,080 | |
320 | Equinix, Inc. | 262,531 | |
4,400 | Equity Residential Properties Trust | 370,172 | |
12,500 | Hudson Pacific Properties, Inc. | 340,750 | |
8,000 | Invitation Homes, Inc. | 325,440 | |
24,000 | Kimco Realty Corp. | 511,920 | |
17,000 | Kite Realty Group Trust | 342,720 | |
18,000 | Pebblebrook Hotel Trust | 404,820 | |
5,700 | Regency Centers Corp. | 372,837 | |
4,900 | Rexford Industrial Realty, Inc. | 301,448 | |
3,500 | Safety Income and Growth, Inc. | 316,120 | |
3,100 | Simon Property Group, Inc. | 392,212 | |
900 | Sun Communities, Inc. | 176,499 | |
21,800 | 1 | Sunstone Hotel Investors, Inc. | 251,572 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Real Estate— continued | |||
4,750 | Terreno Realty Corp. | $324,710 | |
6,800 | UDR, Inc. | 373,932 | |
19,500 | VICI Properties, Inc. | 608,205 | |
TOTAL | 7,181,162 | ||
Utilities— 0.7% | |||
2,108 | Evergy, Inc. | 137,484 | |
12,828 | Exelon Corp. | 600,350 | |
1,476 | NextEra Energy, Inc. | 114,980 | |
19,281 | OGE Energy Corp. | 650,734 | |
1,401 | Public Service Enterprises Group, Inc. | 87,184 | |
TOTAL | 1,590,732 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $92,184,452) | 125,770,662 | ||
CORPORATE BONDS— 10.3% | |||
Basic Industry - Chemicals— 0.0% | |||
$ 10,000 | DuPont de Nemours, Inc., Sr. Unsecd. Note, 5.319%, 11/15/2038 | 13,386 | |
Basic Industry - Metals & Mining— 0.1% | |||
15,000 | Anglogold Ashanti Holdings PLC, Sr. Note, 6.500%, 4/15/2040 | 18,750 | |
62,000 | Carpenter Technology Corp., Sr. Unsecd. Note, 4.450%, 3/1/2023 | 64,784 | |
100,000 | Reliance Steel & Aluminum Co., Sr. Unsecd. Note, 4.500%, 4/15/2023 | 105,728 | |
20,000 | Southern Copper Corp., Sr. Unsecd. Note, 6.750%, 4/16/2040 | 27,870 | |
TOTAL | 217,132 | ||
Capital Goods - Aerospace & Defense— 0.6% | |||
200,000 | BAE Systems PLC, Sr. Unsecd. Note, 144A, 3.000%, 9/15/2050 | 202,013 | |
275,000 | Boeing Co., Sr. Unsecd. Note, 4.875%, 5/1/2025 | 308,591 | |
5,000 | Embraer Overseas Ltd., Sr. Unsecd. Note, 144A, 5.696%, 9/16/2023 | 5,360 | |
110,000 | Huntington Ingalls Industries, Inc., Sr. Unsecd. Note, Series WI, 3.844%, 5/1/2025 | 120,477 | |
300,000 | Leidos, Inc., Sr. Unsecd. Note, Series WI, 2.300%, 2/15/2031 | 298,374 | |
170,000 | Leidos, Inc., Sr. Unsecd. Note, Series WI, 3.625%, 5/15/2025 | 185,340 | |
10,000 | Raytheon Technologies Corp., Sr. Unsecd. Note, 3.100%, 11/15/2021 | 10,010 | |
15,000 | Spirit AeroSystems, Inc., Sr. Unsecd. Note, 4.600%, 6/15/2028 | 14,546 | |
40,000 | 3 | Textron Financial Corp., Jr. Sub. Note, 144A, 1.891% (3-month USLIBOR +1.735%), 2/15/2042 | 34,067 |
50,000 | Textron, Inc., Sr. Unsecd. Note, 4.000%, 3/15/2026 | 56,156 | |
50,000 | Textron, Inc., Sr. Unsecd. Note, 4.300%, 3/1/2024 | 54,091 | |
TOTAL | 1,289,025 | ||
Capital Goods - Building Materials— 0.1% | |||
200,000 | Allegion US Holdings Co., Inc., Sr. Unsecd. Note, 3.200%, 10/1/2024 | 213,274 | |
Capital Goods - Construction Machinery— 0.0% | |||
10,000 | CNH Industrial Capital America LLC, Sr. Unsecd. Note, 4.375%, 4/5/2022 | 10,257 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS— continued | |||
Capital Goods - Diversified Manufacturing— 0.1% | |||
$ 30,000 | General Electric Capital Corp., Sr. Unsecd. Note, Series GMTN, 3.100%, 1/9/2023 | $31,164 | |
60,000 | Lennox International, Inc., Sr. Unsecd. Note, 1.700%, 8/1/2027 | 60,573 | |
175,000 | Roper Technologies, Inc., Sr. Unsecd. Note, 2.000%, 6/30/2030 | 175,894 | |
TOTAL | 267,631 | ||
Communications - Cable & Satellite— 0.1% | |||
145,000 | Comcast Corp., Sr. Unsecd. Note, 2.800%, 1/15/2051 | 144,097 | |
15,000 | Comcast Corp., Sr. Unsecd. Note, 3.900%, 3/1/2038 | 17,521 | |
10,000 | Comcast Corp., Sr. Unsecd. Note, 4.400%, 8/15/2035 | 12,244 | |
TOTAL | 173,862 | ||
Communications - Media & Entertainment— 0.2% | |||
30,000 | Grupo Televisa S.A., Sr. Unsecd. Note, 6.125%, 1/31/2046 | 42,789 | |
400,000 | ViacomCBS, Inc., Sr. Unsecd. Note, 4.750%, 5/15/2025 | 453,616 | |
TOTAL | 496,405 | ||
Communications - Telecom Wireless— 0.2% | |||
150,000 | Crown Castle International Corp., Sr. Unsecd. Note, 3.700%, 6/15/2026 | 166,526 | |
200,000 | Vodafone Group PLC, Sr. Unsecd. Note, 4.875%, 6/19/2049 | 255,579 | |
TOTAL | 422,105 | ||
Communications - Telecom Wirelines— 0.4% | |||
300,000 | AT&T, Inc., Sr. Unsecd. Note, 3.650%, 6/1/2051 | 318,939 | |
5,000 | AT&T, Inc., Sr. Unsecd. Note, 4.500%, 5/15/2035 | 5,995 | |
12,000 | AT&T, Inc., Sr. Unsecd. Note, 144A, 3.500%, 9/15/2053 | 12,429 | |
11,000 | AT&T, Inc., Sr. Unsecd. Note, 144A, 3.650%, 9/15/2059 | 11,394 | |
150,000 | Telefonica Emisiones SAU, Sr. Unsecd. Note, 5.520%, 3/1/2049 | 198,361 | |
90,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 3.150%, 3/22/2030 | 98,154 | |
90,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 4.150%, 3/15/2024 | 97,865 | |
29,000 | Verizon Communications, Inc., Sr. Unsecd. Note, Series WI, 2.987%, 10/30/2056 | 28,259 | |
TOTAL | 771,396 | ||
Consumer Cyclical - Automotive— 0.0% | |||
10,000 | DaimlerChrysler North America Holding Corp., Company Guarantee, 8.500%, 1/18/2031 | 15,397 | |
10,000 | General Motors Financial Co., Inc., Sr. Unsecd. Note, 3.950%, 4/13/2024 | 10,764 | |
TOTAL | 26,161 | ||
Consumer Cyclical - Lodging— 0.0% | |||
20,000 | American Campus Communities Operating Partnership LP, Sr. Unsecd. Note, 4.125%, 7/1/2024 | 21,786 | |
30,000 | Hyatt Hotels Corp., Sr. Unsecd. Note, 3.375%, 7/15/2023 | 31,237 | |
TOTAL | 53,023 | ||
Consumer Cyclical - Retailers— 0.2% | |||
170,000 | AutoNation, Inc., Sr. Unsecd. Note, 4.750%, 6/1/2030 | 203,472 | |
250,000 | AutoZone, Inc., Sr. Unsecd. Note, 3.250%, 4/15/2025 | 270,031 | |
15,000 | CVS Health Corp., Sr. Unsecd. Note, 3.700%, 3/9/2023 | 15,764 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS— continued | |||
Consumer Cyclical - Retailers— continued | |||
$ 15,000 | CVS Health Corp., Sr. Unsecd. Note, 4.100%, 3/25/2025 | $16,640 | |
10,000 | WalMart, Inc., Sr. Unsecd. Note, 5.625%, 4/1/2040 | 14,589 | |
TOTAL | 520,496 | ||
Consumer Cyclical - Services— 0.2% | |||
200,000 | Alibaba Group Holding Ltd., Sr. Unsecd. Note, 2.800%, 6/6/2023 | 207,544 | |
125,000 | Amazon.com, Inc., Sr. Unsecd. Note, 3.800%, 12/5/2024 | 137,174 | |
15,000 | Expedia Group, Inc., Sr. Unsecd. Note, Series WI, 3.250%, 2/15/2030 | 15,764 | |
10,000 | University of Southern California, Sr. Unsecd. Note, 5.250%, 10/1/2111 | 16,194 | |
70,000 | Visa, Inc., Sr. Unsecd. Note, 3.150%, 12/14/2025 | 76,843 | |
15,000 | Visa, Inc., Sr. Unsecd. Note, 4.150%, 12/14/2035 | 18,779 | |
TOTAL | 472,298 | ||
Consumer Non-Cyclical - Food/Beverage— 0.7% | |||
30,000 | Anheuser-Busch Cos LLC / Anheuser-Busch InBev Worldwide, Inc., Sr. Unsecd. Note, 4.700%, 2/1/2036 | 37,362 | |
300,000 | Danone SA, Sr. Unsecd. Note, 144A, 2.947%, 11/2/2026 | 323,834 | |
140,000 | Flowers Foods, Inc., Sr. Unsecd. Note, 3.500%, 10/1/2026 | 153,730 | |
80,000 | General Mills, Inc., Sr. Unsecd. Note, 144A, 3.000%, 2/1/2051 | 82,780 | |
270,000 | Heineken NV, Sr. Unsecd. Note, 144A, 3.500%, 1/29/2028 | 300,484 | |
200,000 | Kerry Group Financial Services, Sr. Unsecd. Note, 144A, 3.200%, 4/9/2023 | 207,220 | |
15,000 | Kraft Heinz Foods Co., Sr. Unsecd. Note, 5.200%, 7/15/2045 | 19,053 | |
50,000 | Mead Johnson Nutrition Co., Sr. Unsecd. Note, 4.125%, 11/15/2025 | 56,488 | |
235,000 | PepsiCo, Inc., Sr. Unsecd. Note, 3.625%, 3/19/2050 | 282,349 | |
TOTAL | 1,463,300 | ||
Consumer Non-Cyclical - Health Care— 0.2% | |||
135,000 | Agilent Technologies, Inc., Sr. Unsecd. Note, 2.750%, 9/15/2029 | 143,345 | |
180,000 | Dentsply Sirona, Inc., Sr. Unsecd. Note, 3.250%, 6/1/2030 | 195,977 | |
TOTAL | 339,322 | ||
Consumer Non-Cyclical - Pharmaceuticals— 0.4% | |||
500,000 | AbbVie, Inc., Sr. Unsecd. Note, 4.250%, 11/21/2049 | 613,576 | |
15,000 | Amgen, Inc., Sr. Unsecd. Note, 4.400%, 5/1/2045 | 18,765 | |
10,000 | Bristol-Myers Squibb Co., Sr. Unsecd. Note, Series WI, 4.125%, 6/15/2039 | 12,357 | |
15,000 | Johnson & Johnson, Sr. Unsecd. Note, 3.550%, 3/1/2036 | 17,890 | |
165,000 | Zoetis, Inc., Sr. Unsecd. Note, 3.000%, 5/15/2050 | 175,316 | |
TOTAL | 837,904 | ||
Consumer Non-Cyclical - Supermarkets— 0.0% | |||
10,000 | Kroger Co., Sr. Unsecd. Note, 4.450%, 2/1/2047 | 12,209 | |
Energy - Independent— 0.4% | |||
250,000 | Canadian Natural Resources Ltd., 3.900%, 2/1/2025 | 273,207 | |
125,000 | Cimarex Energy Co., Sr. Unsecd. Note, 3.900%, 5/15/2027 | 139,179 | |
20,000 | EQT Corp., Sr. Unsecd. Note, 3.900%, 10/1/2027 | 21,726 | |
475,000 | Pioneer Natural Resources, Inc., Sr. Unsecd. Note, 2.150%, 1/15/2031 | 469,601 | |
TOTAL | 903,713 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS— continued | |||
Energy - Integrated— 0.7% | |||
$ 135,000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 3.119%, 5/4/2026 | $147,296 | |
20,000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 3.224%, 4/14/2024 | 21,398 | |
300,000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 3.937%, 9/21/2028 | 345,394 | |
5,000 | ConocoPhillips, Company Guarantee, 6.500%, 2/1/2039 | 7,473 | |
270,000 | Exxon Mobil Corp., Sr. Unsecd. Note, 2.992%, 3/19/2025 | 290,097 | |
75,000 | Husky Energy, Inc., 4.000%, 4/15/2024 | 80,520 | |
240,000 | Husky Energy, Inc., Sr. Unsecd. Note, 4.400%, 4/15/2029 | 272,921 | |
275,000 | Suncor Energy, Inc., Sr. Unsecd. Note, 3.750%, 3/4/2051 | 305,679 | |
TOTAL | 1,470,778 | ||
Energy - Midstream— 0.4% | |||
20,000 | Energy Transfer Operating, Sr. Unsecd. Note, 5.500%, 6/1/2027 | 23,774 | |
115,000 | Energy Transfer Partners LP, Sr. Unsecd. Note, 4.050%, 3/15/2025 | 125,002 | |
75,000 | Energy Transfer Partners LP, Sr. Unsecd. Note, 4.900%, 2/1/2024 | 81,603 | |
10,000 | Energy Transfer Partners LP, Sr. Unsecd. Note, 6.125%, 12/15/2045 | 12,877 | |
170,000 | Enterprise Products Operating LLC, Sr. Unsecd. Note, 3.950%, 2/15/2027 | 191,430 | |
20,000 | Kinder Morgan Energy Partners LP, Sr. Unsecd. Note, Series MTN, 6.950%, 1/15/2038 | 29,001 | |
40,000 | MPLX LP, Sr. Unsecd. Note, 4.125%, 3/1/2027 | 45,140 | |
5,000 | MPLX LP, Sr. Unsecd. Note, 4.500%, 4/15/2038 | 5,763 | |
225,000 | MPLX LP, Sr. Unsecd. Note, 5.500%, 2/15/2049 | 293,505 | |
20,000 | Texas Eastern Transmission LP, Sr. Unsecd. Note, 144A, 2.800%, 10/15/2022 | 20,416 | |
10,000 | Western Gas Partners LP, Sr. Unsecd. Note, 4.750%, 8/15/2028 | 10,875 | |
TOTAL | 839,386 | ||
Energy - Refining— 0.0% | |||
15,000 | HollyFrontier Corp., Sr. Unsecd. Note, 5.875%, 4/1/2026 | 17,388 | |
15,000 | Marathon Petroleum Corp., Sr. Unsecd. Note, 4.500%, 4/1/2048 | 17,292 | |
10,000 | Marathon Petroleum Corp., Sr. Unsecd. Note, 6.500%, 3/1/2041 | 14,068 | |
15,000 | Valero Energy Corp., Sr. Unsecd. Note, 4.350%, 6/1/2028 | 17,153 | |
TOTAL | 65,901 | ||
Financial Institution - Banking— 1.4% | |||
74,000 | American Express Co., 2.650%, 12/2/2022 | 76,407 | |
300,000 | Bank of America Corp., Sr. Unsecd. Note, Series GMTN, 3.500%, 4/19/2026 | 331,616 | |
200,000 | Bank of America Corp., Sub. Note, Series L, 3.950%, 4/21/2025 | 219,689 | |
15,000 | Bank of America Corp., Sub. Note, Series MTN, 4.200%, 8/26/2024 | 16,452 | |
15,000 | Bank of America Corp., Sub., Series MTN, 4.450%, 3/3/2026 | 17,000 | |
20,000 | Bank of New York Mellon, N.A., 3.400%, 5/15/2024 | 21,573 | |
40,000 | Citigroup, Inc., Sr. Unsecd. Note, 2.876%, 7/24/2023 | 40,956 | |
15,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.142%, 1/24/2023 | 15,202 | |
250,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.300%, 4/27/2025 | 272,597 | |
170,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.400%, 5/1/2026 | 187,299 | |
15,000 | Citigroup, Inc., Sub. Note, 4.450%, 9/29/2027 | 17,330 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS— continued | |||
Financial Institution - Banking— continued | |||
$ 30,000 | Comerica, Inc., 3.800%, 7/22/2026 | $33,525 | |
75,000 | Fifth Third Bancorp, Sr. Unsecd. Note, 3.650%, 1/25/2024 | 80,449 | |
40,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.200%, 2/23/2023 | 41,649 | |
275,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.625%, 1/22/2023 | 288,397 | |
150,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 6.250%, 2/1/2041 | 224,866 | |
10,000 | 4 | JPMorgan Chase & Co., Jr. Sub. Deb., Series X, 6.100%, 10/1/2024 | 10,894 |
25,000 | 4 | JPMorgan Chase & Co., Jr. Sub. Note, Series FF, 5.000%, 8/1/2024 | 26,405 |
20,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 3.559%, 4/23/2024 | 21,040 | |
15,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 3.882%, 7/24/2038 | 17,564 | |
400,000 | JPMorgan Chase & Co., Sub. Note, 3.375%, 5/1/2023 | 420,026 | |
300,000 | Morgan Stanley, 4.300%, 1/27/2045 | 375,469 | |
15,000 | Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 3.125%, 1/23/2023 | 15,606 | |
15,000 | Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 4.000%, 7/23/2025 | 16,708 | |
15,000 | Morgan Stanley, Sub. Note, Series MTN, 4.100%, 5/22/2023 | 15,969 | |
10,000 | State Street Corp., Sub. Deb., 3.031%, 11/1/2034 | 10,833 | |
45,000 | Sumitomo Mitsui Financial Group, Inc., Sr. Unsecd. Note, 3.102%, 1/17/2023 | 46,859 | |
250,000 | US Bancorp, Sr. Unsecd. Note, Series MTN, 1.375%, 7/22/2030 | 243,885 | |
10,000 | Wells Fargo & Co., Series MTN, 4.100%, 6/3/2026 | 11,273 | |
10,000 | Westpac Banking Corp., Sub., Series GMTN, 4.322%, 11/23/2031 | 11,184 | |
TOTAL | 3,128,722 | ||
Financial Institution - Broker/Asset Mgr/Exchange— 0.1% | |||
80,000 | Invesco Finance PLC, Sr. Unsecd. Note, 3.750%, 1/15/2026 | 89,041 | |
70,000 | Nuveen LLC, Sr. Unsecd. Note, 144A, 4.000%, 11/1/2028 | 81,664 | |
15,000 | XLIT Ltd., Sub., 4.450%, 3/31/2025 | 16,897 | |
TOTAL | 187,602 | ||
Financial Institution - Finance Companies— 0.2% | |||
150,000 | AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 4.875%, 1/16/2024 | 163,278 | |
250,000 | GE Capital International Funding, Inc., Sr. Unsecd. Note, 4.418%, 11/15/2035 | 307,118 | |
TOTAL | 470,396 | ||
Financial Institution - Insurance - Life— 0.6% | |||
400,000 | AIA Group Ltd., Sub., 144A, 3.200%, 9/16/2040 | 418,486 | |
25,000 | American International Group, Inc., 4.500%, 7/16/2044 | 31,334 | |
35,000 | American International Group, Inc., Sr. Unsecd. Note, 4.125%, 2/15/2024 | 38,086 | |
125,000 | American International Group, Inc., Sr. Unsecd. Note, 4.200%, 4/1/2028 | 144,883 | |
220,000 | Belrose Funding Trust, Sr. Unsecd. Note, 2.330%, 8/15/2030 | 221,252 | |
10,000 | Lincoln National Corp., Sr. Unsecd. Note, 4.200%, 3/15/2022 | 10,236 | |
15,000 | MetLife, Inc., Jr. Sub. Note, 6.400%, 12/15/2036 | 19,298 | |
10,000 | MetLife, Inc., Jr. Sub. Note, 10.750%, 8/1/2039 | 17,255 | |
250,000 | MetLife, Inc., Sr. Unsecd. Note, 3.600%, 4/10/2024 | 270,524 | |
15,000 | Penn Mutual Life Insurance Co., Sr. Note, 144A, 7.625%, 6/15/2040 | 22,959 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS— continued | |||
Financial Institution - Insurance - Life— continued | |||
$ 10,000 | Principal Financial Group, Inc., Sr. Unsecd. Note, 3.125%, 5/15/2023 | $10,474 | |
10,000 | Principal Financial Group, Inc., Sr. Unsecd. Note, 3.300%, 9/15/2022 | 10,325 | |
50,000 | Prudential Financial, Inc., Sr. Unsecd. Note, Series MTN, 6.200%, 11/15/2040 | 71,061 | |
TOTAL | 1,286,173 | ||
Financial Institution - Insurance - P&C— 0.2% | |||
10,000 | Berkshire Hathaway Finance Corp., Sr. Unsecd. Note, 4.200%, 8/15/2048 | 12,639 | |
55,000 | Nationwide Mutual Insurance Co., Sub., 144A, 4.350%, 4/30/2050 | 63,019 | |
205,000 | Nationwide Mutual Insurance Co., Sub., 144A, 4.950%, 4/22/2044 | 253,852 | |
65,000 | Nationwide Mutual Insurance Co., Sub. Note, 144A, 9.375%, 8/15/2039 | 115,221 | |
TOTAL | 444,731 | ||
Financial Institution - REIT - Apartment— 0.1% | |||
20,000 | Post Apartment Homes LP, Sr. Unsecd. Note, 3.375%, 12/1/2022 | 20,631 | |
200,000 | UDR, Inc., Sr. Unsecd. Note, Series MTN, 2.100%, 8/1/2032 | 197,011 | |
70,000 | UDR, Inc., Sr. Unsecd. Note, Series MTN, 2.950%, 9/1/2026 | 75,576 | |
TOTAL | 293,218 | ||
Financial Institution - REIT - Healthcare— 0.1% | |||
185,000 | Welltower, Inc., Sr. Unsecd. Note, 2.700%, 2/15/2027 | 198,074 | |
Financial Institution - REIT - Office— 0.0% | |||
70,000 | Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 3.950%, 1/15/2028 | 80,068 | |
Financial Institution - REIT - Other— 0.1% | |||
105,000 | WP Carey, Inc., Sr. Unsecd. Note, 3.850%, 7/15/2029 | 118,501 | |
75,000 | WP Carey, Inc., Sr. Unsecd. Note, 4.600%, 4/1/2024 | 81,866 | |
TOTAL | 200,367 | ||
Financial Institution - REIT - Retail— 0.2% | |||
300,000 | Kimco Realty Corp., Sr. Unsecd. Note, 2.700%, 10/1/2030 | 313,881 | |
50,000 | Kimco Realty Corp., Sr. Unsecd. Note, 3.400%, 11/1/2022 | 51,652 | |
TOTAL | 365,533 | ||
Financial Institution - REITs— 0.0% | |||
60,000 | Camden Property Trust, Sr. Unsecd. Note, 2.800%, 5/15/2030 | 64,765 | |
Supranational— 0.0% | |||
30,000 | Corp Andina De Fomento, Sr. Unsecd. Note, 4.375%, 6/15/2022 | 30,996 | |
Technology— 0.5% | |||
10,000 | Apple, Inc., 3.850%, 5/4/2043 | 12,054 | |
30,000 | Apple, Inc., Sr. Unsecd. Note, 2.400%, 5/3/2023 | 31,121 | |
200,000 | Apple, Inc., Sr. Unsecd. Note, 2.950%, 9/11/2049 | 211,347 | |
70,000 | Broadcom, Inc., Sr. Unsecd. Note, 144A, 3.750%, 2/15/2051 | 74,087 | |
20,000 | Corning, Inc., Unsecd. Note, 4.750%, 3/15/2042 | 25,588 | |
240,000 | Dell International LLC / EMC Corp., 6.020%, 6/15/2026 | 289,050 | |
110,000 | Fiserv, Inc., Sr. Unsecd. Note, 3.500%, 7/1/2029 | 122,976 | |
20,000 | Ingram Micro, Inc., Sr. Unsecd. Note, 5.000%, 8/10/2022 | 20,479 | |
265,000 | Intel Corp., Sr. Unsecd. Note, 3.400%, 3/25/2025 | 289,289 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS— continued | |||
Technology— continued | |||
$ 7,000 | Microsoft Corp., Sr. Unsecd. Note, 2.921%, 3/17/2052 | $7,570 | |
8,000 | Microsoft Corp., Sr. Unsecd. Note, 3.450%, 8/8/2036 | 9,485 | |
10,000 | Verisk Analytics, Inc., Sr. Unsecd. Note, 4.125%, 9/12/2022 | 10,396 | |
50,000 | Verisk Analytics, Inc., Sr. Unsecd. Note, 5.500%, 6/15/2045 | 69,123 | |
TOTAL | 1,172,565 | ||
Technology Services— 0.0% | |||
5,000 | Global Payments, Inc., Sr. Unsecd. Note, 3.200%, 8/15/2029 | 5,422 | |
Transportation - Airlines— 0.1% | |||
30,000 | Delta Air Lines, Inc., Sr. Unsecd. Note, 2.900%, 10/28/2024 | 30,431 | |
110,000 | Southwest Airlines Co., Sr. Unsecd. Note, 5.250%, 5/4/2025 | 125,673 | |
TOTAL | 156,104 | ||
Transportation - Railroads— 0.2% | |||
50,000 | Burlington Northern Santa Fe Corp., Deb., 5.750%, 5/1/2040 | 72,351 | |
30,000 | Kansas City Southern Industries, Inc., Sr. Unsecd. Note, 3.000%, 5/15/2023 | 31,069 | |
225,000 | Kansas City Southern Industries, Inc., Sr. Unsecd. Note, 3.125%, 6/1/2026 | 244,487 | |
TOTAL | 347,907 | ||
Transportation - Services— 0.2% | |||
15,000 | Enterprise Rent-A-Car USA Finance Co., Sr. Unsecd. Note, 144A, 5.625%, 3/15/2042 | 21,010 | |
20,000 | FedEx Corp., Sr. Unsecd. Note, 3.900%, 2/1/2035 | 23,480 | |
70,000 | Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 2.800%, 3/1/2022 | 70,879 | |
200,000 | Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 3.750%, 6/9/2023 | 211,848 | |
125,000 | United Parcel Service, Inc., Sr. Unsecd. Note, 3.900%, 4/1/2025 | 138,473 | |
TOTAL | 465,690 | ||
Utility - Electric— 1.0% | |||
70,000 | Consolidated Edison Co., Sr. Unsecd. Note, Series 20B, 3.950%, 4/1/2050 | 82,138 | |
70,000 | Electricite de France SA, Note, 144A, 5.600%, 1/27/2040 | 95,651 | |
300,000 | Electricite de France SA, Sr. Unsecd. Note, 144A, 4.500%, 9/21/2028 | 351,189 | |
140,000 | Emera US Finance LP, Sr. Unsecd. Note, 4.750%, 6/15/2046 | 170,310 | |
170,000 | EverSource Energy, Sr. Unsecd. Note, 3.350%, 3/15/2026 | 184,918 | |
200,000 | Exelon Corp., Sr. Unsecd. Note, 3.400%, 4/15/2026 | 219,774 | |
100,000 | Exelon Generation Co. LLC, Sr. Unsecd. Note, 4.250%, 6/15/2022 | 102,444 | |
110,000 | National Rural Utilities Cooperative Finance Corp., Sr. Sub. Note, 5.250%, 4/20/2046 | 120,122 | |
25,000 | National Rural Utilities Cooperative Finance Corp., Sr. Unsecd. Note, Series MTNC, 8.000%, 3/1/2032 | 38,389 | |
250,000 | PPL Capital Funding, Inc., Sr. Unsecd. Note, 3.100%, 5/15/2026 | 270,836 | |
175,000 | Southern Co., Sr. Unsecd. Note, 3.250%, 7/1/2026 | 191,417 | |
300,000 | WEC Energy Group, Inc., Sr. Unsecd. Note, 1.800%, 10/15/2030 | 293,975 | |
TOTAL | 2,121,163 | ||
Utility - Natural Gas— 0.3% | |||
65,000 | National Fuel Gas Co., Sr. Unsecd. Note, 3.750%, 3/1/2023 | 67,680 | |
445,000 | National Fuel Gas Co., Sr. Unsecd. Note, 5.500%, 1/15/2026 | 519,194 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS— continued | |||
Utility - Natural Gas— continued | |||
$ 15,000 | Sempra Energy, Sr. Unsecd. Note, 2.900%, 2/1/2023 | $15,517 | |
5,000 | TransCanada PipeLines Ltd., Sr. Unsecd. Note, 6.200%, 10/15/2037 | 6,954 | |
TOTAL | 609,345 | ||
TOTAL CORPORATE BONDS (IDENTIFIED COST $20,246,449) | 22,507,805 | ||
U.S. TREASURIES— 2.5% | |||
Treasury Inflation-Indexed Note— 1.3% | |||
1,742,020 | U.S. Treasury Inflation-Protected Notes, 0.125%, 1/15/2031 | 1,972,815 | |
723,590 | 5 | U.S. Treasury Inflation-Protected Notes, 0.125%, 2/15/2051 | 829,229 |
TOTAL | 2,802,044 | ||
U.S. Treasury Bond— 0.4% | |||
850,000 | United States Treasury Bonds, 2.375%, 5/15/2051 | 941,472 | |
U.S. Treasury Note— 0.8% | |||
300,000 | United States Treasury Notes, 0.125%, 6/30/2023 | 299,725 | |
150,000 | United States Treasury Notes, 1.125%, 2/15/2031 | 148,717 | |
250,000 | United States Treasury Notes, 1.250%, 6/30/2028 | 254,314 | |
1,050,000 | United States Treasury Notes, 1.625%, 5/15/2031 | 1,088,071 | |
TOTAL | 1,790,827 | ||
TOTAL U.S. TREASURIES (IDENTIFIED COST $5,369,783) | 5,534,343 | ||
ASSET-BACKED SECURITIES— 0.9% | |||
Auto Receivables— 0.2% | |||
400,000 | Toyota Auto Receivables Owner Trust 2020-B, Class A4, 1.660%, 9/15/2025 | 411,662 | |
90,000 | World Omni Auto Receivables Trust 2021-A, Class C, 0.890%, 8/16/2027 | 89,822 | |
TOTAL | 501,484 | ||
Equipment Lease— 0.3% | |||
500,000 | HPEFS Equipment Trust 2020-2A, Class C, 2.000%, 7/22/2030 | 511,517 | |
Other— 0.2% | |||
450,000 | PFS Financing Corp. 2020-G, Class A, 0.970%, 2/15/2026 | 455,476 | |
Student Loans— 0.2% | |||
399,148 | Navient Student Loan Trust 2021-A, Class A, 0.840%, 5/15/2069 | 400,526 | |
TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $1,838,874) | 1,869,003 | ||
COMMERCIAL MORTGAGE-BACKED SECURITIES— 0.8% | |||
Commercial Mortgage— 0.8% | |||
190,000 | Bank, Class A4, 3.488%, 11/15/2050 | 212,579 | |
200,000 | Commercial Mortgage Trust 2013-CR8, Class B, 3.931%, 6/10/2046 | 208,176 | |
54,729 | Federal Home Loan Mortgage Corp. REMIC, Series K055, Class A1, 2.263%, 4/25/2025 | 56,453 | |
394,477 | Federal Home Loan Mortgage Corp. REMIC, Series K106, Class A1, 1.783%, 10/25/2029 | 410,056 | |
350,000 | Federal Home Loan Mortgage Corp. REMIC, Series K737, Class A2, 2.525%, 10/25/2026 | 376,021 | |
200,000 | FREMF Mortgage Trust 2013-K25 REMIC, Class B, 3.620%, 11/25/2045 | 205,770 |
Shares or Principal Amount | Value | ||
COMMERCIAL MORTGAGE-BACKED SECURITIES— continued | |||
Commercial Mortgage— continued | |||
$ 200,000 | JPMDB Commercial Mortgage Securities Trust 2016-C4, Class A3, 3.141%, 12/15/2049 | $218,711 | |
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $1,620,100) | 1,687,766 | ||
MORTGAGE-BACKED SECURITIES— 0.3% | |||
Federal Home Loan Mortgage Corporation— 0.0% | |||
31,785 | Federal Home Loan Mortgage Corp., Pool G07801, 4.000%, 10/1/2044 | 34,743 | |
Federal National Mortgage Association— 0.3% | |||
7,740 | Federal National Mortgage Association, Pool 357761, 5.500%, 5/1/2035 | 8,961 | |
931 | Federal National Mortgage Association, Pool 728709, 5.500%, 7/1/2033 | 1,066 | |
27,570 | Federal National Mortgage Association, Pool 932864, 4.000%, 12/1/2040 | 30,277 | |
48,835 | Federal National Mortgage Association, Pool AB7859, 3.500%, 2/1/2043 | 53,396 | |
36,376 | Federal National Mortgage Association, Pool AD6938, 4.500%, 6/1/2040 | 40,510 | |
19,208 | Federal National Mortgage Association, Pool AQ0945, 3.000%, 11/1/2042 | 20,552 | |
23,010 | Federal National Mortgage Association, Pool AT2127, 3.000%, 4/1/2043 | 24,621 | |
19,010 | Federal National Mortgage Association, Pool AT7861, 3.000%, 6/1/2028 | 20,125 | |
27,421 | Federal National Mortgage Association, Pool BM4388, 4.000%, 8/1/2048 | 29,696 | |
12,979 | Federal National Mortgage Association, Pool BM5024, 3.000%, 11/1/2048 | 13,677 | |
17,977 | Federal National Mortgage Association, Pool BM5246, 3.500%, 11/1/2048 | 19,072 | |
19,553 | Federal National Mortgage Association, Pool CA0833, 3.500%, 12/1/2047 | 20,766 | |
18,579 | Federal National Mortgage Association, Pool CA4427, 3.000%, 10/1/2049 | 19,455 | |
14,368 | Federal National Mortgage Association, Pool FM0008, 3.500%, 8/1/2049 | 15,410 | |
32,010 | Federal National Mortgage Association, Pool FM1000, 3.000%, 4/1/2047 | 33,850 | |
14,797 | Federal National Mortgage Association, Pool FM1221, 3.500%, 7/1/2049 | 15,854 | |
27,265 | Federal National Mortgage Association, Pool MA0500, 5.000%, 8/1/2040 | 30,922 | |
26,737 | Federal National Mortgage Association, Pool MA0666, 4.500%, 3/1/2041 | 29,734 | |
31,034 | Federal National Mortgage Association, Pool MA1430, 3.000%, 5/1/2043 | 33,205 | |
35,793 | Federal National Mortgage Association, Pool MA2803, 2.500%, 11/1/2031 | 37,628 | |
TOTAL | 498,777 | ||
Government National Mortgage Association— 0.0% | |||
18,634 | Government National Mortgage Association, Pool MA0625, 3.500%, 12/20/2042 | 20,153 | |
12,645 | Government National Mortgage Association, Pool MA1376, 4.000%, 10/20/2043 | 13,780 | |
TOTAL | 33,933 | ||
TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $535,473) | 567,453 | ||
GOVERNMENT AGENCY— 0.1% | |||
Federal National Mortgage Association— 0.1% | |||
250,000 | Federal National Mortgage Association Notes, 0.625%, 4/22/2025 (IDENTIFIED COST $249,614) | 251,054 |
Shares or Principal Amount | Value | ||
MUNICIPAL BOND— 0.0% | |||
$ 30,000 | Texas State Transportation Commission - State Highway Fund, 5.178%, 4/1/2030 (IDENTIFIED COST $33,522) | $37,498 | |
COLLATERALIZED MORTGAGE OBLIGATIONS— 0.0% | |||
Federal Home Loan Mortgage Corporation— 0.0% | |||
217 | Federal Home Loan Mortgage Corp. REMIC, Series 1311, Class K, 7.000%, 7/15/2022 | 223 | |
244 | Federal Home Loan Mortgage Corp. REMIC, Series 1384, Class D, 7.000%, 9/15/2022 | 250 | |
2,576 | Federal Home Loan Mortgage Corp. REMIC, Series 2497, Class JH, 6.000%, 9/15/2032 | 2,931 | |
TOTAL | 3,404 | ||
Federal National Mortgage Association— 0.0% | |||
1,007 | 3 | Federal National Mortgage Association REMIC, Series 1993-113, Class SB, 9.749% (10-year Constant Maturity Treasury +48.285%), 7/25/2023 | 1,056 |
525 | Federal National Mortgage Association REMIC, Series 2003-35, Class UC, 3.750%, 5/25/2033 | 553 | |
TOTAL | 1,609 | ||
Non-Agency Mortgage— 0.0% | |||
141 | 6 | Bear Stearns Mortgage Securities, Inc. 1997-6, Class 1A, 6.280%, 3/25/2031 | 143 |
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $4,874) | 5,156 | ||
EXCHANGE-TRADED FUNDS— 8.0% | |||
33,100 | iShares Core MSCI Emerging Markets ETF | 2,092,251 | |
191,800 | iShares MSCI EAFE ETF | 15,246,182 | |
Total Exchange-Traded Funds (IDENTIFIED COST $15,559,125) | 17,338,433 | ||
INVESTMENT COMPANIES— 18.4% | |||
440,962 | Bank Loan Core Fund | 4,255,287 | |
280,120 | Emerging Markets Core Fund | 2,857,224 | |
168,995 | Federated Hermes Government Obligations Fund, Premier Shares, 0.01%7 | 168,995 | |
16,941,121 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.02%7 | 16,947,898 | |
931,592 | High Yield Bond Core Fund | 5,962,186 | |
665,680 | Mortgage Core Fund | 6,610,200 | |
361,421 | Project and Trade Finance Core Fund | 3,205,801 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $40,186,084) | 40,007,591 | ||
TOTAL INVESTMENT IN SECURITIES—99.2% (IDENTIFIED COST $177,828,350)8 | 215,576,764 | ||
OTHER ASSETS AND LIABILITIES - NET—0.8%9 | 1,756,365 | ||
TOTAL NET ASSETS—100% | $217,333,129 |
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized Appreciation (Depreciation) |
Long Future: | ||||
1United States Treasury Notes 10-Year Ultra Long Futures | 1 | $150,250 | September 2021 | $1,060 |
Short Futures: | ||||
1United States Treasury Notes 2-Year Short Futures | 2 | $441,313 | September 2021 | $(457) |
1United States Treasury Notes 5-Year Short Futures | 11 | $1,368,898 | September 2021 | $(5,293) |
1United States Treasury Notes 10-Year Short Futures | 6 | $806,719 | September 2021 | $(4,576) |
1United States Treasury Ultra Bond Short Futures | 6 | $1,197,187 | September 2021 | $(76,733) |
NET UNREALIZED DEPRECIATION ON FUTURES CONTRACTS | $(85,999) |
Affiliates | Value as of 7/31/2020 | Purchases at Cost | Proceeds from Sales |
Bank Loan Core Fund | $2,617,248 | $3,469,024 | $(1,970,000) |
Emerging Markets Core Fund | $3,240,602 | $1,615,975 | $(2,059,430) |
Federated Hermes Government Obligations Fund, Premier Shares* | $1,431,638 | $61,027,375 | $(62,290,018) |
Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | $5,427,864 | $49,008,885 | $(37,489,851) |
High Yield Bond Core Fund | $3,878,566 | $2,981,380 | $(1,086,000) |
Mortgage Core Fund | $11,545,574 | $1,708,813 | $(6,455,370) |
Project and Trade Finance Core Fund | $2,538,696 | $636,179 | $— |
TOTAL OF AFFILIATED TRANSACTIONS | $30,680,188 | $120,447,631 | $(111,350,669) |
Change in Unrealized Appreciation/ Depreciation | Net Realized Gain/ (Loss) | Value as of 7/31/2021 | Shares Held as of 7/31/2021 | Dividend Income |
$86,811 | $52,204 | $4,255,287 | 440,962 | $157,965 |
$(60,353) | $120,430 | $2,857,224 | 280,120 | $194,495 |
N/A | N/A | $168,995 | 168,995 | $405 |
$1,162 | $(162) | $16,947,898 | 16,941,121 | $3,931 |
$132,640 | $55,600 | $5,962,186 | 931,592 | $285,629 |
$(185,746) | $(3,071) | $6,610,200 | 665,680 | $220,173 |
$30,926 | $— | $3,205,801 | 361,421 | $81,979 |
$5,440 | $225,001 | $40,007,591 | 19,789,891 | $944,577 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions. |
1 | Non-income-producing security. |
2 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. |
3 | Floating/variable note with current rate and current maturity or next reset date shown. |
4 | Perpetual Bond Security. The maturity date reflects the next call date. |
5 | All or a portion of this security is pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding futures contracts. |
6 | JPMorgan Chase & Co. has fully and unconditionally guaranteed Bear Stearns’ outstanding registered debt securities. |
7 | 7-day net yield. |
8 | The cost of investments for federal tax purposes amounts to $177,785,260. |
9 | 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 July 31, 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 | $123,917,594 | $— | $— | $123,917,594 |
International | 1,853,068 | — | — | 1,853,068 |
Debt Securities: | ||||
Corporate Bonds | — | 22,507,805 | — | 22,507,805 |
U.S. Treasuries | — | 5,534,343 | — | 5,534,343 |
Asset-Backed Securities | — | 1,869,003 | — | 1,869,003 |
Commercial Mortgage-Backed Securities | — | 1,687,766 | — | 1,687,766 |
Mortgage-Backed Securities | — | 567,453 | — | 567,453 |
Government Agency | — | 251,054 | — | 251,054 |
Municipal Bond | — | 37,498 | — | 37,498 |
Collateralized Mortgage Obligations | — | 5,156 | — | 5,156 |
Exchange-Traded Funds | 17,338,433 | — | — | 17,338,433 |
Investment Companies1 | 36,801,790 | — | — | 40,007,591 |
TOTAL SECURITIES | $179,910,885 | $32,460,078 | $— | $215,576,764 |
Other Financial Instruments:2 | ||||
Assets | $1,060 | $— | $— | $1,060 |
Liabilities | (87,059) | — | — | (87,059) |
TOTAL OTHER FINANCIAL INSTRUMENTS | $(85,999) | $— | $— | $(85,999) |
1 | As permitted by U.S. generally accepted accounting principles (GAAP), an Investment Company valued at $3,205,801 is measured at fair value using the net asset value (NAV) per share practical expedient and has not been categorized in the chart above, but is included in the Total column. The amount included herein is intended to permit reconciliation of the fair value classifications to the amounts presented on the Statement of Assets and Liabilities. The price of shares redeemed of Project and Trade Finance Core Fund may be determined as of the closing NAV of the fund up to twenty-four days after receipt of a shareholder redemption request. |
2 | Other financial instruments are futures contracts. |
The following acronym(s) are used throughout this portfolio: | ||
ETF | —Exchange-Traded Fund | |
FREMF | —Freddie Mac Multifamily K-Deals | |
GMTN | —Global Medium Term Note | |
LIBOR | —London Interbank Offered Rate | |
MTN | —Medium Term Note | |
REIT | —Real Estate Investment Trust | |
REMIC | —Real Estate Mortgage Investment Conduit |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $19.59 | $18.71 | $19.59 | $17.74 | $16.52 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.16 | 0.19 | 0.25 | 0.21 | 0.26 |
Net realized and unrealized gain (loss) | 4.30 | 1.46 | 0.57 | 1.89 | 1.23 |
Total From Investment Operations | 4.46 | 1.65 | 0.82 | 2.10 | 1.49 |
Less Distributions: | |||||
Distributions from net investment income | (0.07) | (0.24) | (0.19) | (0.25) | (0.27) |
Distributions from net realized gain | (0.80) | (0.53) | (1.51) | — | — |
Total Distributions | (0.87) | (0.77) | (1.70) | (0.25) | (0.27) |
Net Asset Value, End of Period | $23.18 | $19.59 | $18.71 | $19.59 | $17.74 |
Total Return2 | 23.31% | 9.08% | 5.28% | 11.91% | 9.11% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.31% | 1.31% | 1.31% | 1.32% | 1.26% |
Net investment income | 0.77% | 1.04% | 1.35% | 1.11% | 1.51% |
Expense waiver/reimbursement4 | 0.04% | 0.07% | 0.08% | 0.06% | 0.15% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $124,559 | $95,559 | $84,243 | $61,553 | $61,405 |
Portfolio turnover | 61% | 152% | 92% | 89% | 82% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $19.35 | $18.50 | $19.31 | $17.49 | $16.30 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.002 | 0.05 | 0.11 | 0.06 | 0.13 |
Net realized and unrealized gain (loss) | 4.23 | 1.43 | 0.59 | 1.87 | 1.20 |
Total From Investment Operations | 4.23 | 1.48 | 0.70 | 1.93 | 1.33 |
Less Distributions: | |||||
Distributions from net investment income | — | (0.10) | (0.00)2 | (0.11) | (0.14) |
Distributions from net realized gain | (0.80) | (0.53) | (1.51) | — | — |
Total Distributions | (0.80) | (0.63) | (1.51) | (0.11) | (0.14) |
Net Asset Value, End of Period | $22.78 | $19.35 | $18.50 | $19.31 | $17.49 |
Total Return3 | 22.37% | 8.25% | 4.54% | 11.09% | 8.23% |
Ratios to Average Net Assets: | |||||
Net expenses4 | 2.06% | 2.06% | 2.06% | 2.07% | 2.01% |
Net investment income | 0.01% | 0.29% | 0.60% | 0.35% | 0.75% |
Expense waiver/reimbursement5 | 0.05% | 0.09% | 0.10% | 0.04% | 0.13% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $16,941 | $15,043 | $15,492 | $27,577 | $29,007 |
Portfolio turnover | 61% | 152% | 92% | 89% | 82% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
3 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $19.67 | $18.78 | $19.64 | $17.79 | $16.57 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.22 | 0.24 | 0.30 | 0.26 | 0.30 |
Net realized and unrealized gain (loss) | 4.30 | 1.46 | 0.58 | 1.89 | 1.23 |
Total From Investment Operations | 4.52 | 1.70 | 0.88 | 2.15 | 1.53 |
Less Distributions: | |||||
Distributions from net investment income | (0.11) | (0.28) | (0.23) | (0.30) | (0.31) |
Distributions from net realized gain | (0.80) | (0.53) | (1.51) | — | — |
Total Distributions | (0.91) | (0.81) | (1.74) | (0.30) | (0.31) |
Net Asset Value, End of Period | $23.28 | $19.67 | $18.78 | $19.64 | $17.79 |
Total Return2 | 23.59% | 9.33% | 5.61% | 12.15% | 9.36% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.06% | 1.06% | 1.06% | 1.07% | 1.00% |
Net investment income | 1.02% | 1.29% | 1.62% | 1.35% | 1.77% |
Expense waiver/reimbursement4 | 0.04% | 0.07% | 0.08% | 0.02% | 0.12% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $73,997 | $54,440 | $53,035 | $54,358 | $39,136 |
Portfolio turnover | 61% | 152% | 92% | 89% | 82% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 20171 | |
Net Asset Value, Beginning of Period | $19.61 | $18.74 | $19.62 | $17.76 | $16.49 |
Income From Investment Operations: | |||||
Net investment income (loss)2 | 0.22 | 0.24 | 0.27 | 0.26 | 0.28 |
Net realized and unrealized gain (loss) | 4.31 | 1.44 | 0.60 | 1.90 | 1.24 |
Total From Investment Operations | 4.53 | 1.68 | 0.87 | 2.16 | 1.52 |
Less Distributions: | |||||
Distributions from net investment income | (0.10) | (0.28) | (0.24) | (0.30) | (0.25) |
Distributions from net realized gain | (0.80) | (0.53) | (1.51) | — | — |
Total Distributions | (0.90) | (0.81) | (1.75) | (0.30) | (0.25) |
Net Asset Value, End of Period | $23.24 | $19.61 | $18.74 | $19.62 | $17.76 |
Total Return3 | 23.70% | 9.26% | 5.56% | 12.24% | 9.32% |
Ratios to Average Net Assets: | |||||
Net expenses4 | 1.05% | 1.05% | 1.05% | 1.06% | 1.05% |
Net investment income | 1.03% | 1.29% | 1.40% | 1.36% | 1.64% |
Expense waiver/reimbursement5 | 0.01% | 0.03% | 0.06% | 0.02% | 0.06% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $1,836 | $1,516 | $3,165 | $12,178 | $10,439 |
Portfolio turnover | 61% | 152% | 92% | 89% | 82% |
1 | Effective September 1, 2016, the Fund’s Class R Shares were redesignated as Class R6 Shares. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
July 31, 2021
Assets: | |
Investment in securities, at value including $148,358 of securities loaned and $40,007,591 of investment in affiliated holdings* (identified cost $177,828,350) | $215,576,764 |
Cash | 221 |
Cash denominated in foreign currencies (identified cost $3,315) | 3,494 |
Income receivable | 293,096 |
Income receivable from affiliated holdings | 77,081 |
Receivable for investments sold | 1,963,544 |
Receivable for shares sold | 261,768 |
Total Assets | 218,175,968 |
Liabilities: | |
Payable for investments purchased | 410,603 |
Payable for shares redeemed | 44,658 |
Payable for variation margin on futures contracts | 7,347 |
Payable for collateral due to broker for securities lending (Note 2) | 168,995 |
Payable for investment adviser fee (Note 5) | 8,889 |
Payable for administrative fee (Note 5) | 932 |
Payable for auditing fees | 32,600 |
Payable for custodian fees | 13,512 |
Payable for legal fees | 4,417 |
Payable for portfolio accounting fees | 31,122 |
Payable for transfer agent fees | 14,548 |
Payable for distribution services fee (Note 5) | 10,601 |
Payable for other service fees (Notes 2 and 5) | 56,828 |
Accrued expenses (Note 5) | 37,787 |
Total Liabilities | 842,839 |
Net assets for 9,374,653 shares outstanding | $217,333,129 |
Net Assets Consist of: | |
Paid-in capital | $167,223,291 |
Total distributable earnings (loss) | 50,109,838 |
Total Net Assets | $217,333,129 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($124,559,143 ÷ 5,373,783 shares outstanding), no par value, unlimited shares authorized | $23.18 |
Offering price per share (100/94.50 of $23.18) | $24.53 |
Redemption proceeds per share | $23.18 |
Class C Shares: | |
Net asset value per share ($16,940,707 ÷ 743,653 shares outstanding), no par value, unlimited shares authorized | $22.78 |
Offering price per share | $22.78 |
Redemption proceeds per share (99.00/100 of $22.78) | $22.55 |
Institutional Shares: | |
Net asset value per share ($73,996,859 ÷ 3,178,183 shares outstanding), no par value, unlimited shares authorized | $23.28 |
Offering price per share | $23.28 |
Redemption proceeds per share | $23.28 |
Class R6 Shares: | |
Net asset value per share ($1,836,420 ÷ 79,034 shares outstanding), no par value, unlimited shares authorized | $23.24 |
Offering price per share | $23.24 |
Redemption proceeds per share | $23.24 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31, 2021
Investment Income: | |
Dividends (including $944,172 received from affiliated holdings*) | $2,848,598 |
Interest | 1,066,706 |
Net income on securities loaned (includes $405 earned from an affiliated holding* related to cash collateral balances) (Note 2) | 7,434 |
TOTAL INCOME | 3,922,738 |
Expenses: | |
Investment adviser fee (Note 5) | 1,409,044 |
Administrative fee (Note 5) | 152,676 |
Custodian fees | 50,798 |
Transfer agent fees (Note 2) | 162,099 |
Directors’/Trustees’ fees (Note 5) | 2,292 |
Auditing fees | 34,100 |
Legal fees | 11,958 |
Portfolio accounting fees | 114,194 |
Distribution services fee (Note 5) | 119,429 |
Other service fees (Notes 2 and 5) | 296,415 |
Share registration costs | 75,545 |
Printing and postage | 31,778 |
Miscellaneous (Note 5) | 38,556 |
TOTAL EXPENSES | 2,498,884 |
Waiver and Reimbursements: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (11,958) |
Reimbursement of other operating expenses (Notes 2 and 5) | (59,371) |
TOTAL WAIVER AND REIMBURSEMENTS | (71,329) |
Net expenses | 2,427,555 |
Net investment income | 1,495,183 |
Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions and Futures Contracts: | |
Net realized gain on investments (including net realized gain of $225,001 on sales of investments in affiliated holdings*) | $16,328,699 |
Net realized gain on foreign currency transactions | 14,251 |
Net realized loss on futures contracts | (182,507) |
Net change in unrealized appreciation of investments (including net change in unrealized depreciation of $5,440 of investments in affiliated holdings*) | 21,988,970 |
Net change in unrealized appreciation of translation of assets and liabilities in foreign currency | 110 |
Net change in unrealized appreciation of futures contracts | (103,580) |
Net realized and unrealized gain (loss) on investments, foreign currency transactions and futures contracts | 38,045,943 |
Change in net assets resulting from operations | $39,541,126 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31 | 2021 | 2020 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $1,495,183 | $1,653,661 |
Net realized gain (loss) | 16,160,443 | 4,438,996 |
Net change in unrealized appreciation/depreciation | 21,885,500 | 7,120,161 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 39,541,126 | 13,212,818 |
Distributions to Shareholders: | ||
Class A Shares | (4,237,449) | (3,813,305) |
Class C Shares | (600,829) | (539,280) |
Institutional Shares | (2,568,687) | (2,518,867) |
Class R6 Shares | (74,229) | (108,342) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (7,481,194) | (6,979,794) |
Share Transactions: | ||
Proceeds from sale of shares | 36,726,310 | 29,726,646 |
Proceeds from shares issued in connection with the tax-free transfer of assets from PNC Balanced Allocation Fund | — | 11,298,197 |
Net asset value of shares issued to shareholders in payment of distributions declared | 7,145,158 | 6,622,021 |
Cost of shares redeemed | (25,156,864) | (43,256,472) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 18,714,604 | 4,390,392 |
Change in net assets | 50,774,536 | 10,623,416 |
Net Assets: | ||
Beginning of period | 166,558,593 | 155,935,177 |
End of period | $217,333,129 | $166,558,593 |
Shares of the Fund Issued | Acquired Fund’s Net Assets Received | Unrealized Appreciation1 | Net Assets of the Fund Immediately Prior to Combination | Net Assets of the Fund Immediately After Combination |
593,132 | $11,298,197 | $2,170,935 | $154,177,771 | $165,475,968 |
1 | Unrealized Appreciation is included in the Net Assets Received amount shown above. |
Net investment income | $1,721,772 |
Net realized and unrealized gain on investments | 11,959,769 |
Net increase in net assets resulting from operations | $13,681,541 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $98,241 | $(34,572) |
Class C Shares | 14,028 | (6,215) |
Institutional Shares | 49,167 | (18,584) |
Class R6 Shares | 663 | — |
TOTAL | $162,099 | $(59,371) |
Other Service Fees Incurred | |
Class A Shares | $256,690 |
Class C Shares | 39,725 |
TOTAL | $296,415 |
Market Value of Securities Loaned | Collateral Received |
$148,358 | $168,995 |
Fair Value of Derivative Instruments | ||
Liabilities | ||
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 | $85,999* |
* | 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 | |
Futures Contracts | |
Interest rate contracts | $(182,507) |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |
Futures Contracts | |
Interest rate contracts | $(103,580) |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 871,492 | $18,715,026 | 602,633 | $11,030,108 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | — | — | 425,056 | 8,093,068 |
Shares issued to shareholders in payment of distributions declared | 194,924 | 3,995,498 | 191,088 | 3,554,535 |
Shares redeemed | (571,167) | (12,038,249) | (842,124) | (15,137,260) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 495,249 | $10,672,275 | 376,653 | $7,540,451 |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 194,456 | $4,082,733 | 156,794 | $2,848,857 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | — | — | 24,943 | 468,430 |
Shares issued to shareholders in payment of distributions declared | 27,279 | 549,947 | 26,632 | 488,464 |
Shares redeemed | (255,679) | (5,368,466) | (268,255) | (4,750,816) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (33,944) | $(735,786) | (59,886) | $(945,065) |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 629,515 | $13,538,386 | 806,718 | $15,223,232 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | — | — | 143,133 | 2,736,699 |
Shares issued to shareholders in payment of distributions declared | 122,521 | 2,525,489 | 132,428 | 2,472,322 |
Shares redeemed | (342,167) | (7,302,718) | (1,138,214) | (21,041,358) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 409,869 | $8,761,157 | (55,935) | $(609,105) |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 18,465 | $390,165 | 33,882 | $624,449 |
Shares issued to shareholders in payment of distributions declared | 3,611 | 74,224 | 5,727 | 106,700 |
Shares redeemed | (20,326) | (447,431) | (131,269) | (2,327,038) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | 1,750 | $16,958 | (91,660) | $(1,595,889) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 872,924 | $18,714,604 | 169,172 | $4,390,392 |
2021 | 2020 | |
Ordinary income1 | $5,122,149 | $4,219,861 |
Long-term capital gains | $2,359,045 | $2,759,933 |
1 | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Undistributed ordinary income1 | $7,945,885 |
Net unrealized appreciation | $37,767,459 |
Undistributed long-term capital gains | $4,396,494 |
1 | For tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings. |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Percentage of Average Daily Net Assets of Class | |
Class A Shares | 0.05% |
Class C Shares | 0.75% |
Distribution Services Fees Incurred | |
Class C Shares | $119,429 |
Purchases | $94,160,543 |
Sales | $98,467,076 |
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/ernstyoungsig.jpg)
September 23, 2021
Beginning Account Value 2/1/2021 | Ending Account Value 7/31/2021 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,122.50 | $6.89 |
Class C Shares | $1,000 | $1,118.30 | $10.82 |
Institutional Shares | $1,000 | $1,124.10 | $5.58 |
Class R6 Shares | $1,000 | $1,124.30 | $5.53 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,018.30 | $6.56 |
Class C Shares | $1,000 | $1,014.58 | $10.29 |
Institutional Shares | $1,000 | $1,019.54 | $5.31 |
Class R6 Shares | $1,000 | $1,019.59 | $5.26 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.31% |
Class C Shares | 2.06% |
Institutional Shares | 1.06% |
Class R6 Shares | 1.05% |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: May 2006 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2016 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company; President of some of the Funds in the Federated Hermes Fund Family and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; President and CEO of Passport Research, Ltd.; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Hermes, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. and President, Technology, Federated Services Company. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee, 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: Chairman of the Board of Directors, 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 Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Director, Member of the Audit Committee, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor 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.; and Director and Vice Chair, Our Campaign for the Church Alive!, Inc. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity and Director, The Golisano Children’s Museum of Naples, Florida. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
Madelyn A. Reilly Birth Date: February 2, 1956 Trustee Indefinite Term Began serving: November 2020 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Senior Vice President for Legal Affairs, General Counsel and Secretary of the Board of Trustees, 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 Director of Risk Management and Associate General Counsel, 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 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, 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 Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: June 2006 | Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, 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. |
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: June 2012 | Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments. |
Annual Evaluation of Adequacy and Effectiveness
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Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31421R833
CUSIP 31421R825
CUSIP 31421R692
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/fscbug_small.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/img84d487371.gif)
Share Class | Ticker | A | QALGX | B | QBLGX | C | QCLGX | Institutional | QILGX |
Federated Hermes MDT Large Cap Growth Fund
A Portfolio of Federated Hermes MDT Series
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1 Year | 5 Years | 10 Years | |
Class A Shares | 27.56% | 21.57% | 15.70% |
Class B Shares | 28.47% | 21.85% | 15.66% |
Class C Shares | 33.01% | 22.04% | 15.66% |
Institutional Shares | 35.33% | 23.25% | 16.65% |
R1000G | 36.68% | 23.32% | 18.37% |
MLGFA | 35.53% | 21.40% | 16.43% |
Sector Composition | Percentage of Total Net Assets |
Information Technology | 44.5% |
Consumer Discretionary | 17.5% |
Communication Services | 11.9% |
Health Care | 10.1% |
Industrials | 5.3% |
Financials | 3.4% |
Consumer Staples | 2.8% |
Materials | 1.7% |
Real Estate | 0.7% |
Energy | 0.4% |
Cash Equivalents2 | 1.8% |
Other Assets and Liabilities—Net3 | (0.1)% |
TOTAL | 100% |
1 | Except for Cash Equivalents and Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
2 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. |
3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares | Value | ||
COMMON STOCKS— 98.3% | |||
Communication Services— 11.9% | |||
14,175 | Activision Blizzard, Inc. | $1,185,313 | |
4,637 | 1 | Alphabet, Inc., Class A | 12,494,536 |
716 | 1 | Charter Communications, Inc. | 532,740 |
4,816 | Electronic Arts, Inc. | 693,311 | |
17,980 | 1 | Facebook, Inc. | 6,406,274 |
3,381 | 1 | Netflix, Inc. | 1,749,904 |
6,361 | 1 | Pinterest, Inc. | 374,663 |
3,968 | 1 | Take-Two Interactive Software, Inc. | 688,131 |
TOTAL | 24,124,872 | ||
Consumer Discretionary— 17.5% | |||
2,774 | 1 | Amazon.com, Inc. | 9,230,735 |
650 | 1 | AutoZone, Inc. | 1,055,320 |
6,201 | 1 | Burlington Stores, Inc. | 2,076,095 |
5,979 | Domino’s Pizza, Inc. | 3,141,905 | |
7,164 | eBay, Inc. | 488,656 | |
7,988 | Home Depot, Inc. | 2,621,582 | |
8,093 | L Brands, Inc. | 648,006 | |
16,071 | Lowe’s Cos., Inc. | 3,096,721 | |
4,005 | McDonald’s Corp. | 972,054 | |
9,176 | Nike, Inc., Class B | 1,537,072 | |
3,456 | 1 | O’Reilly Automotive, Inc. | 2,086,871 |
3,286 | Starbucks Corp. | 399,019 | |
3,906 | Tempur Sealy International, Inc. | 169,013 | |
5,335 | 1 | Tesla, Inc. | 3,666,212 |
1,838 | Tractor Supply Co. | 332,549 | |
1,220 | 1 | Ulta Beauty, Inc. | 409,676 |
19,905 | 1 | YETI Holdings, Inc. | 1,917,449 |
12,068 | Yum! Brands, Inc. | 1,585,614 | |
TOTAL | 35,434,549 | ||
Consumer Staples— 2.8% | |||
4,590 | Costco Wholesale Corp. | 1,972,415 | |
12,712 | Energizer Holdings, Inc. | 544,709 | |
1,874 | Estee Lauder Cos., Inc., Class A | 625,597 | |
15,326 | Flowers Foods, Inc. | 361,081 | |
5,835 | Hershey Foods Corp. | 1,043,765 | |
7,233 | PepsiCo, Inc. | 1,135,219 | |
TOTAL | 5,682,786 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Energy— 0.4% | |||
21,146 | Continental Resources, Inc. | $722,136 | |
Financials— 3.4% | |||
7,831 | 1 | Arch Capital Group Ltd. | 305,409 |
6,575 | Blackstone Group, Inc./The | 757,900 | |
6,756 | MSCI, Inc., Class A | 4,026,306 | |
5,820 | The Travelers Cos., Inc. | 866,715 | |
11,870 | Tradeweb Markets, Inc. | 1,029,485 | |
TOTAL | 6,985,815 | ||
Health Care— 10.1% | |||
17,111 | AbbVie, Inc. | 1,990,009 | |
11,452 | Amgen, Inc. | 2,766,116 | |
1,412 | Anthem, Inc. | 542,222 | |
16,873 | 1 | Avantor, Inc. | 634,087 |
179 | 1 | IDEXX Laboratories, Inc. | 121,457 |
12,033 | 1 | IQVIA Holdings, Inc. | 2,980,574 |
2,078 | 1 | Jazz Pharmaceuticals PLC. | 352,263 |
10,514 | McKesson Corp. | 2,143,069 | |
2,895 | Merck & Co., Inc. | 222,539 | |
305 | 1 | Mettler-Toledo International, Inc. | 449,481 |
4,859 | 1 | Moderna, Inc. | 1,718,142 |
1,468 | 1 | Molina Healthcare, Inc. | 400,779 |
4,792 | 1 | Veeva Systems, Inc. | 1,594,346 |
9,098 | 1 | Vertex Pharmaceuticals, Inc. | 1,833,975 |
13,961 | Zoetis, Inc. | 2,829,895 | |
TOTAL | 20,578,954 | ||
Industrials— 5.3% | |||
8,738 | Allegion PLC | 1,193,611 | |
50,485 | Carrier Global Corp. | 2,789,296 | |
8,188 | Flowserve Corp. | 344,633 | |
974 | 1 | Generac Holdings, Inc. | 408,457 |
5,748 | Huntington Ingalls Industries, Inc. | 1,179,087 | |
19,070 | 1 | IAA Spinco, Inc. | 1,153,354 |
20,996 | 1 | KAR Auction Services, Inc. | 346,014 |
2,763 | TransUnion | 331,726 | |
6,935 | United Parcel Service, Inc. | 1,327,081 | |
3,744 | Vertiv Holdings Co. | 104,982 | |
10,845 | 1 | XPO Logistics, Inc. | 1,504,093 |
605 | Xylem, Inc. | 76,139 | |
TOTAL | 10,758,473 | ||
Information Technology— 44.5% | |||
5,503 | 1 | Adobe, Inc. | 3,420,830 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Information Technology— continued | |||
152,752 | Apple, Inc. | $22,280,407 | |
5,329 | Applied Materials, Inc. | 745,687 | |
6,514 | 1 | Arista Networks, Inc. | 2,477,860 |
755 | 1 | Autodesk, Inc. | 242,453 |
3,047 | Bentley Systems, Inc. | 185,288 | |
5,299 | Broadcom, Inc. | 2,572,135 | |
1,028 | 1 | CloudFlare, Inc. | 121,952 |
9,486 | 1 | Crowdstrike Holdings, Inc. | 2,405,744 |
1,384 | 1 | Datadog, Inc. | 153,209 |
1,987 | 1 | Dell Technologies, Inc. | 191,984 |
20,659 | 1 | Dropbox, Inc. | 650,552 |
9,356 | 1 | EPAM Systems, Inc. | 5,237,489 |
3,274 | 1 | FleetCor Technologies, Inc. | 845,412 |
13,904 | 1 | Fortinet, Inc. | 3,785,225 |
4,020 | 1 | GoDaddy, Inc. | 337,077 |
6,097 | 1 | HubSpot, Inc. | 3,633,934 |
10,143 | Mastercard, Inc. | 3,914,589 | |
55,751 | Microsoft Corp. | 15,884,017 | |
21,173 | 1 | Nutanix, Inc. | 762,651 |
29,756 | NVIDIA Corp. | 5,802,122 | |
5,340 | Oracle Corp. | 465,328 | |
3,817 | 1 | Palo Alto Networks, Inc. | 1,523,174 |
2,850 | Paychex, Inc. | 324,387 | |
4,483 | 1 | Paylocity Corp. | 930,043 |
18,607 | 1 | PayPal Holdings, Inc. | 5,126,787 |
26,327 | Qualcomm, Inc. | 3,943,785 | |
1,457 | 1 | Salesforce.com, Inc. | 352,492 |
1,190 | 1 | ServiceNow, Inc. | 699,589 |
35,773 | Western Union Co. | 830,291 | |
2,139 | 1 | Workday, Inc. | 501,382 |
TOTAL | 90,347,875 | ||
Materials— 1.7% | |||
34,203 | 1 | Berry Global Group, Inc. | 2,198,911 |
20,567 | Dow, Inc. | 1,278,445 | |
TOTAL | 3,477,356 | ||
Real Estate— 0.7% | |||
7,215 | Coresite Realty Corp. | 997,185 | |
2,155 | Crown Castle International Corp. | 416,109 | |
TOTAL | 1,413,294 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $110,599,963) | 199,526,110 |
Shares | Value | ||
INVESTMENT COMPANY— 1.8% | |||
3,685,847 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.02%2 (IDENTIFIED COST $3,686,697) | $3,687,321 | |
TOTAL INVESTMENT IN SECURITIES—100.1% (IDENTIFIED COST $114,286,660)3 | 203,213,431 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.1)%4 | (192,648) | ||
TOTAL NET ASSETS—100% | $203,020,783 |
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 | $640,284 | $3,806,381 | $4,446,665 |
Purchases at Cost | $1,639,586 | $35,573,112 | $37,212,698 |
Proceeds from Sales | $(2,279,870) | $(35,691,533) | $(37,971,403) |
Change in Unrealized Appreciation/ Depreciation | N/A | $(2,259) | $(2,259) |
Net Realized Gain/(Loss) | N/A | $1,620 | $1,620 |
Value as of 7/31/2021 | $— | $3,687,321 | $3,687,321 |
Shares Held as of 7/31/2021 | — | 3,685,847 | 3,685,847 |
Dividend Income | $129 | $2,856 | $2,985 |
* | 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 | 7-day net yield. |
3 | The cost of investments for federal tax purposes amounts to $114,504,875. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $25.03 | $20.81 | $20.66 | $17.46 | $15.18 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.07) | (0.04) | (0.05) | (0.07) | 0.01 |
Net realized and unrealized gain (loss) | 8.36 | 5.37 | 2.01 | 4.67 | 2.36 |
Total From Investment Operations | 8.29 | 5.33 | 1.96 | 4.60 | 2.37 |
Less Distributions: | |||||
Distributions from net realized gain | (2.10) | (1.11) | (1.81) | (1.40) | (0.09) |
Net Asset Value, End of Period | $31.22 | $25.03 | $20.81 | $20.66 | $17.46 |
Total Return2 | 35.00% | 26.91% | 11.28% | 27.38% | 15.66% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.99% | 1.11% | 1.48% | 1.52% | 1.52% |
Net investment income (loss) | (0.27)% | (0.19)% | (0.27)% | (0.38)% | 0.02% |
Expense waiver/reimbursement4 | 0.38% | 0.30% | 0.00%5 | 0.02% | 0.08% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $123,486 | $93,740 | $67,513 | $59,355 | $49,794 |
Portfolio turnover | 39% | 220% | 97% | 104% | 104% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Represents less than 0.01%. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $22.13 | $18.66 | $18.85 | $16.16 | $14.16 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.24) | (0.18) | (0.18) | (0.20) | (0.11) |
Net realized and unrealized gain (loss) | 7.30 | 4.76 | 1.80 | 4.29 | 2.20 |
Total From Investment Operations | 7.06 | 4.58 | 1.62 | 4.09 | 2.09 |
Less Distributions: | |||||
Distributions from net realized gain | (2.10) | (1.11) | (1.81) | (1.40) | (0.09) |
Net Asset Value, End of Period | $27.09 | $22.13 | $18.66 | $18.85 | $16.16 |
Total Return2 | 33.97% | 25.95% | 10.51% | 26.38% | 14.81% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.74% | 1.90% | 2.23% | 2.27% | 2.27% |
Net investment income (loss) | (1.01)% | (0.96)% | (1.02)% | (1.13)% | (0.71)% |
Expense waiver/reimbursement4 | 0.38% | 0.27% | 0.00%5 | 0.02% | 0.08% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $8,233 | $9,662 | $12,612 | $14,432 | $13,654 |
Portfolio turnover | 39% | 220% | 97% | 104% | 104% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Represents less than 0.01%. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $21.43 | $18.10 | $18.35 | $15.76 | $13.81 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.23) | (0.17) | (0.18) | (0.19) | (0.11) |
Net realized and unrealized gain (loss) | 7.06 | 4.61 | 1.74 | 4.18 | 2.15 |
Total From Investment Operations | 6.83 | 4.44 | 1.56 | 3.99 | 2.04 |
Less Distributions: | |||||
Distributions from net realized gain | (2.10) | (1.11) | (1.81) | (1.40) | (0.09) |
Net Asset Value, End of Period | $26.16 | $21.43 | $18.10 | $18.35 | $15.76 |
Total Return2 | 34.01% | 25.99% | 10.46% | 26.42% | 14.82% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.74% | 1.88% | 2.23% | 2.27% | 2.27% |
Net investment income (loss) | (1.02)% | (0.95)% | (1.03)% | (1.13)% | (0.72)% |
Expense waiver/reimbursement4 | 0.38% | 0.29% | 0.00%5 | 0.02% | 0.08% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $17,671 | $14,536 | $12,445 | $10,685 | $9,672 |
Portfolio turnover | 39% | 220% | 97% | 104% | 104% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Represents less than 0.01%. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $26.39 | $21.83 | $21.52 | $18.10 | $15.69 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.002 | 0.03 | (0.01) | (0.03) | 0.05 |
Net realized and unrealized gain (loss) | 8.85 | 5.64 | 2.13 | 4.85 | 2.45 |
Total From Investment Operations | 8.85 | 5.67 | 2.12 | 4.82 | 2.50 |
Less Distributions: | |||||
Distributions from net realized gain | (2.10) | (1.11) | (1.81) | (1.40) | (0.09) |
Net Asset Value, End of Period | $33.14 | $26.39 | $21.83 | $21.52 | $18.10 |
Total Return3 | 35.33% | 27.22% | 11.59% | 27.65% | 15.98% |
Ratios to Average Net Assets: | |||||
Net expenses4 | 0.74% | 0.81% | 1.22% | 1.27% | 1.27% |
Net investment income (loss) | 0.01% | 0.13% | (0.04)% | (0.14)% | 0.27% |
Expense waiver/reimbursement5 | 0.37% | 0.34% | 0.00%6 | 0.02% | 0.08% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $53,631 | $90,113 | $37,076 | $11,966 | $7,649 |
Portfolio turnover | 39% | 220% | 97% | 104% | 104% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
3 | Based on net asset value. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
6 | Represents less than 0.01%. |
July 31, 2021
Assets: | |
Investment in securities, at value including $3,687,321 of investments in an affiliated holding* (identified cost $114,286,660) | $203,213,431 |
Cash | 9,980 |
Income receivable | 59,222 |
Income receivable from an affiliated holding | 140 |
Receivable for investments sold | 334,456 |
Receivable for shares sold | 34,103 |
Total Assets | 203,651,332 |
Liabilities: | |
Payable for investments purchased | 386,291 |
Payable for shares redeemed | 50,167 |
Payable for investment adviser fee (Note 5) | 4,420 |
Payable for administrative fee (Note 5) | 874 |
Payable for transfer agent fees | 32,912 |
Payable for auditing fees | 23,600 |
Payable for share registration costs | 15,690 |
Payable for transfer agent fees | 32,912 |
Payable for distribution services fee (Note 5) | 16,365 |
Payable for other service fees (Notes 2 and 5) | 56,353 |
Accrued expenses (Note 5) | 10,965 |
Total Liabilities | 630,549 |
Net assets for 6,553,240 shares outstanding | $203,020,783 |
Net Assets Consist of: | |
Paid-in capital | $83,808,630 |
Total distributable earnings (loss) | 119,212,153 |
Total Net Assets | $203,020,783 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($123,485,719 ÷ 3,955,198 shares outstanding), no par value, unlimited shares authorized | $31.22 |
Offering price per share (100/94.50 of $31.22) | $33.04 |
Redemption proceeds per share | $31.22 |
Class B Shares: | |
Net asset value per share ($8,232,934 ÷ 303,919 shares outstanding), no par value, unlimited shares authorized | $27.09 |
Offering price per share | $27.09 |
Redemption proceeds per share (94.50/100 of $27.09) | $25.60 |
Class C Shares: | |
Net asset value per share ($17,670,751 ÷ 675,584 shares outstanding), no par value, unlimited shares authorized | $26.16 |
Offering price per share | $26.16 |
Redemption proceeds per share (99.00/100 of $26.16) | $25.90 |
Institutional Shares: | |
Net asset value per share ($53,631,379 ÷ 1,618,539 shares outstanding), no par value, unlimited shares authorized | $33.14 |
Offering price per share | $33.14 |
Redemption proceeds per share | $33.14 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31, 2021
Investment Income: | |
Dividends (including $2,856 received from an affiliated holding*) | $1,362,145 |
Net income on securities loaned (includes $129 earned from an affiliated holding* related to cash collateral balances) (Note 2) | 368 |
TOTAL INCOME | 1,362,513 |
Expenses: | |
Investment adviser fee (Note 5) | 1,388,810 |
Administrative fee (Note 5) | 145,742 |
Custodian fees | 23,133 |
Transfer agent fees | 228,589 |
Directors’/Trustees’ fees (Note 5) | 2,324 |
Auditing fees | 27,800 |
Legal fees | 11,958 |
Portfolio accounting fees | 96,308 |
Distribution services fee (Note 5) | 189,818 |
Other service fees (Notes 2 and 5) | 328,360 |
Share registration costs | 69,224 |
Printing and postage | 47,320 |
Miscellaneous (Note 5) | 34,535 |
TOTAL EXPENSES | 2,593,921 |
Waiver/reimbursement of investment adviser fee (Note 5) | (696,377) |
Net expenses | 1,897,544 |
Net investment loss | (535,031) |
Realized and Unrealized Gain (Loss) on Investments: | |
Net realized gain on investments (including net realized gain of $1,620 on sales of investments in an affiliated holding*) | 31,959,465 |
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $(2,259) of investments in an affiliated holding*) | 25,038,051 |
Net realized and unrealized gain (loss) on investments | 56,997,516 |
Change in net assets resulting from operations | $56,462,485 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31 | 2021 | 2020 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment loss | $(535,031) | $(285,104) |
Net realized gain (loss) | 31,959,465 | 12,827,359 |
Net change in unrealized appreciation/depreciation | 25,038,051 | 31,352,658 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 56,462,485 | 43,894,913 |
Distributions to Shareholders: | ||
Class A Shares | (7,852,771) | (4,102,840) |
Class B Shares | (806,820) | (700,438) |
Class C Shares | (1,466,534) | (770,197) |
Institutional Shares | (3,474,993) | (3,849,963) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (13,601,118) | (9,423,438) |
Share Transactions: | ||
Proceeds from sale of shares | 27,778,342 | 25,421,100 |
Proceeds from shares issued in connection with the tax-free transfer of assets from PNC Multi-Factor Large Cap Growth Fund | — | 101,740,899 |
Net asset value of shares issued to shareholders in payment of distributions declared | 12,716,551 | 8,888,859 |
Cost of shares redeemed | (88,385,510) | (92,117,585) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (47,890,617) | 43,933,273 |
Change in net assets | (5,029,250) | 78,404,748 |
Net Assets: | ||
Beginning of period | 208,050,033 | 129,645,285 |
End of period | $203,020,783 | $208,050,033 |
Shares of the Fund Issued | Acquired Fund’s Net Assets Received | Unrealized Appreciation1 | Net Assets of the Fund Immediately Prior to Combination | Net Assets of the Fund Immediately After Combination |
4,605,196 | $101,740,899 | $9,990,130 | $117,706,237 | $219,447,136 |
1 | Unrealized Appreciation is included in the Net Assets Received amount shown above. |
Net investment income (loss) | $(26,688) |
Net realized and unrealized gain on investments | 47,081,335 |
Net increase in net assets resulting from operations | $47,054,647 |
Other Service Fees Incurred | |
Class A Shares | $265,088 |
Class B Shares | 22,404 |
Class C Shares | 40,868 |
TOTAL | $328,360 |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 582,106 | $15,708,186 | 448,019 | $9,256,462 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | — | — | 703,729 | 14,926,094 |
Shares issued to shareholders in payment of distributions declared | 282,938 | 7,231,879 | 185,136 | 3,734,190 |
Shares redeemed | (654,609) | (17,644,211) | (836,434) | (17,393,596) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 210,435 | $5,295,854 | 500,450 | $10,523,150 |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Class B Shares: | Shares | Amount | Shares | Amount |
Shares sold | 9,308 | $212,138 | 18,918 | $376,860 |
Shares issued to shareholders in payment of distributions declared | 34,632 | 771,950 | 38,249 | 685,430 |
Shares redeemed | (176,631) | (4,193,531) | (296,608) | (5,312,408) |
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS | (132,691) | $(3,209,443) | (239,441) | $(4,250,118) |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 141,379 | $3,201,533 | 137,996 | $2,411,329 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | — | — | 18,359 | 337,996 |
Shares issued to shareholders in payment of distributions declared | 67,645 | 1,455,733 | 43,943 | 762,414 |
Shares redeemed | (211,687) | (4,821,813) | (209,547) | (3,655,507) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (2,663) | $(164,547) | (9,249) | $(143,768) |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 302,157 | $8,656,485 | 609,210 | $13,376,449 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | — | — | 3,883,108 | 86,476,809 |
Shares issued to shareholders in payment of distributions declared | 120,229 | 3,256,989 | 174,603 | 3,706,825 |
Shares redeemed | (2,218,569) | (61,725,955) | (2,950,847) | (65,756,074) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (1,796,183) | $(49,812,481) | 1,716,074 | $37,804,009 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (1,721,102) | $(47,890,617) | 1,967,834 | $43,933,273 |
Increase (Decrease) | |
Paid-In Capital | Total Distributable Earnings (Loss) |
$(9,980) | $9,980 |
2021 | 2020 | |
Ordinary income1 | $9,003,465 | $3,443,870 |
Long-term capital gains | $4,597,653 | $5,979,568 |
1 | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Undistributed ordinary income1 | $19,066,352 |
Net unrealized appreciation | $88,708,556 |
Undistributed long-term capital gains | $11,437,245 |
1 | For tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings. |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Percentage of Average Daily Net Assets of Class | |
Class A Shares | 0.05% |
Class B Shares | 0.75% |
Class C Shares | 0.75% |
Distribution Services Fees Incurred | |
Class B Shares | $67,213 |
Class C Shares | 122,605 |
TOTAL | $189,818 |
Purchases | $72,444,448 |
Sales | $134,402,614 |
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September 23, 2021
Beginning Account Value 2/1/2021 | Ending Account Value 7/31/2021 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,181.70 | $5.36 |
Class B Shares | $1,000 | $1,177.30 | $9.39 |
Class C Shares | $1,000 | $1,177.30 | $9.39 |
Institutional Shares | $1,000 | $1,182.80 | $4.01 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,019.89 | $4.96 |
Class B Shares | $1,000 | $1,016.17 | $8.70 |
Class C Shares | $1,000 | $1,016.17 | $8.70 |
Institutional Shares | $1,000 | $1,021.12 | $3.71 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 0.99% |
Class B Shares | 1.74% |
Class C Shares | 1.74% |
Institutional Shares | 0.74% |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: May 2006 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2016 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company; President of some of the Funds in the Federated Hermes Fund Family and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; President and CEO of Passport Research, Ltd.; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Hermes, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. and President, Technology, Federated Services Company. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee, 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: Chairman of the Board of Directors, 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 Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Director, Member of the Audit Committee, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor 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.; and Director and Vice Chair, Our Campaign for the Church Alive!, Inc. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity and Director, The Golisano Children’s Museum of Naples, Florida. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
Madelyn A. Reilly Birth Date: February 2, 1956 Trustee Indefinite Term Began serving: November 2020 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Senior Vice President for Legal Affairs, General Counsel and Secretary of the Board of Trustees, 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 Director of Risk Management and Associate General Counsel, 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 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, 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 Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: June 2006 | Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, 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 F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: June 2012 | Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Annual Evaluation of Adequacy and Effectiveness
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Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31421R684
CUSIP 31421R809
CUSIP 31421R882
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Share Class | Ticker | A | QASCX | C | QCSCX | Institutional | QISCX | R6 | QLSCX |
Federated Hermes MDT Small Cap Core Fund
A Portfolio of Federated Hermes MDT Series
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/donahuechrissigsmall.jpg)
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1 Year | 5 Years | 10 Years | |
Class A Shares | 45.89% | 12.73% | 12.68% |
Class C Shares | 52.16% | 13.16% | 12.66% |
Institutional Shares | 54.73% | 14.29% | 13.62% |
Class R6 Shares4 | 54.79% | 14.31% | 13.13% |
R2000 | 51.97% | 14.28% | 12.34% |
MSBFA | 52.54% | 12.42% | 11.40% |
Sector Composition | Percentage of Total Net Assets |
Health Care | 19.3% |
Financials | 15.2% |
Information Technology | 14.7% |
Industrials | 13.9% |
Consumer Discretionary | 13.7% |
Real Estate | 8.2% |
Materials | 3.4% |
Consumer Staples | 3.3% |
Communication Services | 2.7% |
Energy | 2.5% |
Utilities | 1.3% |
Securities Lending Collateral2 | 0.4% |
Cash Equivalents3 | 1.9% |
Other Assets and Liabilities—Net4 | (0.5)% |
TOTAL | 100% |
1 | Except for Securities Lending Collateral, Cash Equivalents and Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification System (GICS), except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
2 | Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. |
3 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing cash collateral for securities lending. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares | Value | ||
COMMON STOCKS— 98.2% | |||
Communication Services— 2.7% | |||
96,108 | 1 | AMC Networks, Inc. | $4,809,244 |
230,538 | 1 | Cars.com, Inc. | 2,784,899 |
9,383 | 1 | Chicken Soup For The Soul Entertainment, Inc. | 336,662 |
23,060 | Cogent Communications Holdings, Inc. | 1,789,687 | |
11,598 | 1 | iHeartMedia, Inc. | 299,808 |
489,592 | 1 | Yelp, Inc. | 18,310,741 |
TOTAL | 28,331,041 | ||
Consumer Discretionary— 13.7% | |||
191,988 | 1 | Abercrombie & Fitch Co., Class A | 7,259,066 |
114,603 | 1 | Academy Sports and Outdoors, Inc. | 4,246,041 |
323,928 | 1 | American Axle & Manufacturing Holdings, Inc. | 3,138,862 |
10,736 | 1 | American Public Education, Inc. | 318,000 |
113,412 | 1 | Bed Bath & Beyond, Inc. | 3,236,778 |
45,224 | Big Lots, Inc. | 2,605,355 | |
134,377 | 1 | Bloomin Brands, Inc. | 3,376,894 |
42,279 | 1 | Boot Barn Holdings, Inc. | 3,653,751 |
142,069 | 2 | Camping World Holdings, Inc. | 5,591,836 |
38,297 | 1 | Citi Trends, Inc. | 3,054,186 |
90,372 | 1 | Container Store Group, Inc. | 950,713 |
71,697 | 1 | CROCs, Inc. | 9,737,170 |
15,255 | Dillards, Inc., Class A | 2,795,784 | |
194,537 | 1 | Everi Holdings, Inc. | 4,414,045 |
102,313 | 1 | Funko, Inc. | 1,909,161 |
14,233 | 1 | Groupon, Inc. | 517,654 |
54,423 | 1 | Houghton Mifflin Harcourt Co. | 616,068 |
47,572 | 1 | iRobot Corp. | 4,162,550 |
30,552 | Jack in the Box, Inc. | 3,325,891 | |
81,412 | Kontoor Brands, Inc. | 4,508,597 | |
22,444 | 1 | Lakes Gaming, Inc. | 1,021,426 |
7,822 | 1 | Lands’ End, Inc. | 299,817 |
11,770 | 1 | LGI Homes, Inc. | 2,011,493 |
5,164 | 1 | Lovesac Co./The | 313,455 |
187,759 | 1 | Macy’s, Inc. | 3,191,903 |
139,972 | 1 | Modine Manufacturing Co. | 2,341,732 |
73,993 | Movado Group, Inc. | 2,224,970 | |
58,125 | 1 | Nesco Holdings, Inc. | 452,794 |
37,984 | 1 | Party City Holdco, Inc. | 324,383 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Consumer Discretionary— continued | |||
37,639 | 1 | Perdoceo Education Corp. | $446,399 |
11,131 | 1 | Red Robin Gourmet Burgers | 291,966 |
246,597 | 1 | Red Rock Resorts, Inc. | 9,715,922 |
77,062 | 1 | Revolve Group, Inc. | 5,364,286 |
57,594 | 1 | Sally Beauty Holdings, Inc. | 1,089,678 |
11,114 | 1 | Scientific Games Corp. | 685,845 |
22,853 | 1 | SeaWorld Entertainment, Inc. | 1,083,461 |
43,186 | Shutterstock, Inc. | 4,685,249 | |
46,624 | Sonic Automotive, Inc. | 2,543,339 | |
243,533 | 1 | Sonos, Inc. | 8,129,132 |
8,592 | 1 | Tilly’s, Inc. | 127,419 |
122,888 | 1 | Vista Outdoor, Inc. | 4,963,446 |
25,853 | Wingstop, Inc. | 4,428,877 | |
55,525 | 1,3 | XPEL, Inc. | 5,141,615 |
124,517 | 1 | YETI Holdings, Inc. | 11,994,723 |
TOTAL | 142,291,732 | ||
Consumer Staples— 3.3% | |||
199,380 | 1 | Bellring Brands, Inc. | 6,593,497 |
68,563 | 1 | BJ’s Wholesale Club Holdings, Inc. | 3,472,030 |
82,634 | 1 | Central Garden & Pet Co., Class A | 3,578,879 |
18,493 | Coca-Cola Bottling Co. | 7,381,481 | |
17,484 | 1 | elf Beauty, Inc. | 482,733 |
22,429 | Energizer Holdings, Inc. | 961,083 | |
51,735 | 1 | Hostess Brands, Inc. | 832,416 |
26,420 | Ingles Markets, Inc., Class A | 1,578,859 | |
53,001 | Primo Water Corp. | 876,107 | |
67,693 | SpartanNash Co. | 1,316,629 | |
48,752 | 1 | Sprouts Farmers Market, Inc. | 1,198,324 |
52,274 | 1 | United Natural Foods, Inc. | 1,731,315 |
120,282 | Vector Group Ltd. | 1,606,967 | |
416,881 | 1 | Veru, Inc. | 2,863,972 |
TOTAL | 34,474,292 | ||
Energy— 2.5% | |||
154,063 | 1 | Antero Resources Corp. | 2,095,257 |
39,505 | Bonanza Creek Energy, Inc. | 1,519,757 | |
29,745 | Brigham Minerals, Inc. | 584,192 | |
41,414 | Cactus, Inc. | 1,492,561 | |
102,141 | 1 | CONSOL Energy, Inc. | 2,145,983 |
111,305 | 1 | Gulf Island Fabrication, Inc. | 507,551 |
26,603 | 1 | Laredo Petroleum | 1,464,761 |
471,121 | 1 | Magnolia Oil & Gas Corp. | 6,595,694 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Energy— continued | |||
44,826 | Matador Resources Co. | $1,385,123 | |
19,079 | 1 | Nabors Industries Ltd. | 1,669,603 |
253,565 | 1 | Newpark Resources, Inc. | 819,015 |
28,051 | 1 | Oceaneering International, Inc. | 371,956 |
115,117 | Ovintiv, Inc. | 2,953,902 | |
28,157 | PDC Energy, Inc. | 1,113,609 | |
24,164 | 1 | Whiting Petroleum Corp. | 1,133,292 |
TOTAL | 25,852,256 | ||
Financials— 15.2% | |||
10,366 | 1st Source Corp. | 474,659 | |
217,441 | Ares Commercial Real Estate Corp. | 3,279,010 | |
221,738 | Artisan Partners Asset Management, Inc. | 10,663,380 | |
8,095 | BankUnited, Inc. | 320,400 | |
178,568 | Chimera Investment Corp. | 2,628,521 | |
45,701 | Cowen Group, Inc. | 1,827,126 | |
169,443 | 1 | Customers Bancorp, Inc. | 6,137,225 |
100,997 | Donegal Group, Inc., Class A | 1,562,424 | |
121,482 | 1 | Donnelley Financial Solutions, Inc. | 3,912,935 |
930,062 | Eastern Bankshares, Inc. | 16,973,632 | |
48,387 | Employers Holdings, Inc. | 2,009,028 | |
62,276 | Financial Institutions, Inc. | 1,833,405 | |
184,192 | First Bancorp, Inc. | 7,367,680 | |
145,788 | First Foundation, Inc. | 3,436,223 | |
142,917 | Granite Point Mortgage Trust, Inc. | 2,016,559 | |
277,245 | Great Western Bancorp, Inc. | 8,539,146 | |
136,994 | 1 | Green Dot Corp. | 6,311,314 |
46,590 | Heartland Financial USA, Inc. | 2,125,436 | |
146,181 | HomeStreet, Inc. | 5,512,486 | |
115,974 | Horace Mann Educators Corp. | 4,616,925 | |
20,085 | Houlihan Lokey, Inc. | 1,789,574 | |
38,484 | Independent Bank Corp.- Michigan | 809,319 | |
453,070 | Investors Bancorp, Inc. | 6,261,427 | |
130,465 | KKR Real Estate Finance Trust, Inc. | 2,780,209 | |
7,227 | Merchants Bancorp, Inc. | 264,797 | |
151,317 | Moelis & Co. | 8,965,532 | |
233,740 | Navient Corp. | 4,775,308 | |
3,322 | 1 | Nicolet Bankshares, Inc. | 240,480 |
42,829 | Peapack-Gladstone Financial Corp. | 1,379,522 | |
26,019 | PJT Partners, Inc. | 2,033,905 | |
17,855 | Preferred Bank Los Angeles, CA | 1,053,088 | |
277,040 | ProAssurance Corp. | 5,618,371 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Financials— continued | |||
146,879 | QCR Holdings, Inc. | $7,210,290 | |
18,225 | Sculptor Capital Management, Inc. | 423,185 | |
17,521 | Selective Insurance Group, Inc. | 1,425,333 | |
82,015 | StepStone Group, Inc. | 3,732,503 | |
41,900 | TriCo Bancshares | 1,652,117 | |
97,179 | 1 | Triumph Bancorp, Inc. | 7,449,742 |
95,899 | Veritex Holdings, Inc. | 3,217,411 | |
141,145 | Waterstone Financial, Inc. | 2,784,791 | |
134,084 | Western New England Bancorp, Inc. | 1,134,351 | |
171,039 | 2 | WisdomTree Investments, Inc. | 1,057,021 |
TOTAL | 157,605,790 | ||
Health Care— 19.3% | |||
96,400 | 1,2 | Acorda Therapeutics, Inc. | 361,500 |
66,205 | 4 | Adeptus Health, Inc. | 0 |
859,140 | 1 | Akebia Therapeutics, Inc. | 2,122,076 |
27,440 | 1 | Alector, Inc. | 659,520 |
54,675 | 1 | Alkermes, Inc. | 1,414,442 |
96,407 | 1 | Amphastar Pharmaceuticals, Inc. | 2,019,727 |
118,462 | 1 | ANI Pharmaceuticals, Inc. | 4,019,416 |
112,921 | 1 | Antigenics, Inc. | 584,931 |
96,713 | 1 | Apellis Pharmaceuticals, Inc. | 6,188,665 |
12,793 | 1,2 | Apollo Medical Holdings, Inc. | 1,130,517 |
31,412 | 1 | Arvinas, Inc. | 3,175,753 |
143,707 | 1,2 | Assembly Biosciences, Inc. | 498,663 |
43,567 | 1 | Avid Bioservices, Inc. | 1,117,494 |
57,188 | 1 | AxoGen, Inc. | 1,164,920 |
335,240 | 1 | BioCryst Pharmaceuticals, Inc. | 5,404,069 |
73,303 | 1 | Biohaven Pharmaceutical Holding Co. Ltd. | 9,236,911 |
13,694 | 1,2 | Black Diamond Therapeutics, Inc. | 130,915 |
13,965 | 1 | Blueprint Medicines Corp. | 1,227,105 |
370,078 | 1 | Brookdale Senior Living, Inc. | 2,782,987 |
239,793 | 1 | Catalyst Pharmaceutical Partners, Inc. | 1,400,391 |
31,534 | 1,2 | Co-Diagnostics, Inc. | 318,809 |
76,385 | 1 | Collegium Pharmaceutical, Inc. | 1,901,223 |
296,264 | 1 | Community Health Systems, Inc. | 3,946,236 |
11,206 | 1,2 | Cortexyme, Inc. | 633,251 |
123,014 | 1 | Cross Country Healthcare, Inc. | 2,019,890 |
64,753 | 1 | Cutera, Inc. | 3,363,918 |
398,791 | 1 | Cytomx Therapeutics, Inc. | 2,157,459 |
12,350 | 1 | Denali Therapeutics, Inc. | 630,220 |
148,535 | 1 | Dicerna Pharmaceuticals, Inc. | 5,571,548 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Health Care— continued | |||
48,942 | 1 | Eagle Pharmaceuticals, Inc. | $2,275,803 |
27,778 | 1 | Evolent Health, Inc. | 637,227 |
73,279 | 1 | Evolus, Inc. | 792,879 |
51,830 | 1 | Frequency Therapeutics, Inc. | 431,744 |
129,377 | 1 | GlycoMimetics, Inc. | 261,342 |
34,812 | 1 | Harpoon Therapeutics, Inc. | 340,809 |
30,317 | 1 | Health Catalyst, Inc. | 1,760,205 |
159,074 | 1 | Homology Medicines, Inc. | 1,011,711 |
56,036 | 1 | Hookipa Pharma, Inc. | 433,158 |
52,241 | 1 | IDEAYA Biosciences, Inc. | 1,279,904 |
46,507 | 1 | Inogen, Inc. | 3,709,863 |
302,402 | 1 | Inovalon Holdings, Inc. | 11,454,988 |
35,062 | 1 | Intellia Therapeutics, Inc. | 4,973,545 |
29,091 | 1 | iRhythm Technologies, Inc. | 1,487,132 |
148,250 | 1 | Ironwood Pharmaceuticals, Inc. | 1,967,277 |
47,293 | 1 | Krystal Biotech, Inc. | 2,763,803 |
26,428 | LeMaitre Vascular, Inc. | 1,439,269 | |
25,678 | 1 | Ligand Pharmaceuticals, Inc., Class B | 2,914,710 |
106,404 | 1 | Magenta Therapeutics, Inc. | 757,596 |
6,212 | 1 | Morphic Holding, Inc. | 357,935 |
122,230 | 1 | NextCure, Inc. | 847,054 |
76,682 | 1 | OptimizeRX Corp. | 4,238,214 |
11,367 | 1 | Oramed Pharmaceuticals, Inc. | 161,298 |
71,404 | 1 | Organogenesis Holdings, Inc. | 1,095,337 |
121,082 | 1 | Ortho Clinical Diagnostics Holdings PLC | 2,720,713 |
20,181 | 1 | Orthofix Medical, Inc. | 801,993 |
29,143 | Owens & Minor, Inc. | 1,347,864 | |
49,708 | 1 | Pacira BioSciences, Inc. | 2,930,287 |
15,215 | Patterson Cos., Inc. | 473,643 | |
108,603 | 1 | Prestige Consumer Healthcare, Inc. | 5,707,088 |
185,943 | 1 | Progyny, Inc. | 10,355,166 |
131,178 | 1 | Protagonist Therapeutics, Inc. | 6,484,128 |
40,514 | 1 | Prothena Corp. PLC | 2,029,751 |
113,734 | 1 | Puma Biotechnology, Inc. | 855,280 |
168,132 | Select Medical Holdings Corp. | 6,632,807 | |
154,374 | 1 | Selecta Biosciences, Inc. | 534,134 |
190,894 | 1,2 | Sesen Bio, Inc. | 712,035 |
77,807 | 1 | Shockwave Medical, Inc. | 14,160,874 |
114,298 | 1 | SI-BONE, Inc. | 3,467,801 |
91,581 | 1 | Surgery Partners, Inc. | 4,996,659 |
99,608 | 1 | The Joint Corp. | 7,868,036 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Health Care— continued | |||
140,894 | 1 | Translate Bio, Inc. | $3,894,310 |
266,334 | 1 | Vanda Pharmaceuticals, Inc. | 4,343,908 |
23,382 | 1 | Varex Imaging Corp. | 638,329 |
9,000 | 1 | Vericel Corp. | 476,460 |
106,988 | 1 | Vocera Communications, Inc. | 4,489,216 |
303,474 | 1 | Voyager Therapeutics, Inc. | 955,943 |
33,049 | 1 | Xencor, Inc. | 1,017,248 |
TOTAL | 200,469,032 | ||
Industrials— 13.9% | |||
64,543 | Advanced Drainage System, Inc. | 7,880,055 | |
9,737 | 1 | Allegiant Travel Co. | 1,851,198 |
26,251 | ArcBest Corp. | 1,551,697 | |
226,806 | 1 | Astronics Corp. | 3,873,846 |
129,392 | 1 | Atkore, Inc. | 9,718,633 |
76,684 | 1 | Atlas Air Worldwide Holdings, Inc. | 5,135,527 |
42,533 | 1 | Avis Budget Group, Inc. | 3,520,456 |
157,957 | 1 | Beacon Roofing Supply, Inc. | 8,447,540 |
147,371 | Boise Cascade Co. | 7,538,027 | |
204,738 | 1 | CECO Environmental Corp. | 1,441,356 |
25,868 | 1 | Cimpress PLC | 2,645,003 |
340,414 | Costamare, Inc. | 3,690,088 | |
164,541 | 1 | Echo Global Logistics, Inc. | 5,089,253 |
20,641 | EnPro Industries, Inc. | 1,922,090 | |
102,939 | 1 | Franklin Covey Co. | 3,766,538 |
341,727 | 1 | GMS, Inc. | 16,789,048 |
36,625 | Heidrick & Struggles International, Inc. | 1,564,254 | |
43,122 | 1 | Herc Holdings, Inc. | 5,348,853 |
246,238 | Hillenbrand, Inc. | 11,154,581 | |
74,619 | Hurco Co., Inc. | 2,532,569 | |
246,857 | 1 | Mistras Group, Inc. | 2,591,999 |
252,200 | 1 | MRC Global, Inc. | 2,312,674 |
82,537 | 1 | MYR Group, Inc. | 7,893,013 |
197,808 | 1 | Now, Inc. | 1,952,365 |
42,674 | Powell Industries, Inc. | 1,241,387 | |
171,526 | 1 | Resideo Technologies, Inc. | 5,060,017 |
10,425 | Tennant Co. | 824,826 | |
38,402 | Terex Corp. | 1,840,224 | |
191,908 | 1 | Titan Machinery, Inc. | 5,475,135 |
82,554 | 1 | TriNet Group, Inc. | 6,850,331 |
43,391 | 1 | Veritiv Corp. | 2,659,000 |
TOTAL | 144,161,583 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Information Technology— 14.7% | |||
61,608 | 1 | Altair Engineering, Inc. | $4,297,774 |
56,468 | 1 | Ambarella, Inc. | 5,561,533 |
110,080 | 1 | Asana, Inc. | 7,822,285 |
135,621 | 1 | Avaya Holdings Corp. | 3,284,741 |
72,995 | 1 | Axcelis Technologies, Inc. | 2,813,957 |
43,417 | 1 | Blackbaud, Inc. | 3,096,935 |
14,975 | 1 | Box, Inc. | 358,202 |
136,016 | 1 | Brightcove, Inc. | 1,560,104 |
78,384 | 1 | Cambium Networks Corp. | 3,452,815 |
277,002 | 1 | Commvault Systems, Inc. | 20,938,581 |
413,634 | 1 | Conduent, Inc. | 2,775,484 |
82,994 | 1 | Domo, Inc. | 7,330,860 |
36,141 | Evertec, Inc. | 1,579,362 | |
106,772 | 1 | Evo Payments, Inc. | 3,117,742 |
45,274 | 1 | Exlservice Holding, Inc. | 5,125,922 |
224,349 | 1 | Extreme Networks, Inc. | 2,470,083 |
219,926 | 1 | Grid Dynamics Holdings, Inc. | 4,629,442 |
14,660 | 1 | Ichor Holdings Ltd. | 756,016 |
140,773 | 1 | MA-COM Technology Solutions Holdings, Inc. | 8,688,510 |
80,195 | 1 | Mimecast Ltd. | 4,454,832 |
13,244 | 1 | Netgear, Inc. | 453,607 |
16,504 | 1 | OSI Systems, Inc. | 1,651,225 |
37,047 | 1 | Rapid7, Inc. | 4,214,096 |
31,465 | 1 | Rimini Street, Inc. | 273,431 |
18,444 | 1 | Sanmina Corp. | 708,618 |
136,248 | 1 | Secureworks Corp. | 2,733,135 |
70,348 | 1 | SMART Global Holdings, Inc. | 3,295,100 |
98,549 | 1 | Sprout Social, Inc. | 8,755,093 |
77,987 | 1 | SPS Commerce, Inc. | 8,496,684 |
166,525 | 1 | Synchronoss Technologies, Inc. | 472,931 |
318,578 | 1 | TTM Technologies, Inc. | 4,456,906 |
44,059 | 1 | Turtle Beach Corp. | 1,361,423 |
17,115 | 1 | Ultra Clean Holdings, Inc. | 924,381 |
104,123 | 1 | Workiva, Inc. | 13,512,042 |
403,819 | 1 | Zuora, Inc. | 6,982,031 |
TOTAL | 152,405,883 | ||
Materials— 3.4% | |||
284,505 | 1 | Alcoa Corp. | 11,422,876 |
28,442 | 1 | Clearwater Paper Corp. | 838,755 |
60,586 | Commercial Metals Corp. | 1,987,221 | |
67,665 | 1 | Koppers Holdings, Inc. | 2,077,992 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Materials— continued | |||
89,378 | Myers Industries, Inc. | $1,893,026 | |
154,866 | 1 | O-I Glass, Inc. | 2,290,468 |
235,025 | 1 | Ranpak Holdings Corp. | 6,021,340 |
53,805 | 1 | Ryerson Holding Corp. | 846,353 |
178,898 | SunCoke Energy, Inc. | 1,382,881 | |
120,166 | Trinseo SA | 6,532,224 | |
TOTAL | 35,293,136 | ||
Real Estate— 8.2% | |||
56,883 | CareTrust REIT, Inc. | 1,372,018 | |
303,692 | 1,2 | DigitalBridge Group, Inc. | 2,113,696 |
41,341 | Gladstone Land Corp. | 964,072 | |
489,041 | Independence Realty Trust | 9,428,710 | |
68,529 | Macerich Co. (The) | 1,117,023 | |
92,295 | 1 | Marcus & Millichap Co., Inc. | 3,672,418 |
436,329 | National Storage Affiliates Trust | 23,635,942 | |
184,509 | Newmark Group, Inc. | 2,376,476 | |
27,485 | NexPoint Residential Trust, Inc. | 1,620,241 | |
308,661 | Plymouth Industrial REIT, Inc. | 7,123,896 | |
113,412 | PotlatchDeltic Corp. | 5,890,619 | |
33,279 | 1 | Realogy Hldgs. Corp. | 589,704 |
240,253 | RMR Group, Inc./The | 9,427,528 | |
38,184 | STAG Industrial, Inc. | 1,577,763 | |
27,072 | Terreno Realty Corp. | 1,850,642 | |
1,101,665 | Uniti Group, Inc. | 12,900,497 | |
TOTAL | 85,661,245 | ||
Utilities— 1.3% | |||
7,773 | Chesapeake Utilities Corp. | 968,438 | |
139,064 | Clearway Energy, Inc. | 3,747,775 | |
52,824 | Consolidated Water Co. | 669,808 | |
157,403 | Portland General Electric Co. | 7,697,007 | |
TOTAL | 13,083,028 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $836,989,402) | 1,019,629,018 | ||
INVESTMENT COMPANIES— 2.3% | |||
4,285,672 | Federated Hermes Government Obligations Fund, Premier Shares, 0.01%5 | 4,285,672 |
Shares | Value | ||
INVESTMENT COMPANIES— continued | |||
19,578,581 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.02%5 | $19,586,412 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $23,869,213) | 23,872,084 | ||
TOTAL INVESTMENT IN SECURITIES—100.5% (IDENTIFIED COST $860,858,615)6 | 1,043,501,102 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.5)%7 | (4,914,438) | ||
TOTAL NET ASSETS—100% | $1,038,586,664 |
Affiliated | Value as of 7/31/2020 | Purchases at Cost* | Proceeds from Sales* |
Consumer Discretionary: | |||
Lovesac Co./The** | $— | $3,785,391 | $(4,017,970) |
Wingstop, Inc. | $16,774,688 | $4,299,053 | $(14,680,260) |
Financials: | |||
StepStone Group, Inc. | $— | $2,651,683 | $— |
Health Care: | |||
Acorda Therapeutics, Inc.** | $394,351 | $— | $(31,511) |
Alector, Inc. | $— | $993,686 | $— |
Amphastar Pharmaceuticals, Inc. | $1,702,621 | $229,700 | $— |
IDEAYA Biosciences, Inc. | $— | 2,877,611 | (1,379,427) |
Frequency Therapeutics, Inc. | $— | $3,337,856 | $(2,144,852) |
Translate Bio, Inc. | $— | $8,219,001 | $(2,922,073) |
Information Technology: | |||
Domo, Inc. | $2,670,618 | $7,272,873 | $(5,565,646) |
Grid Dynamics Holdings, Inc. | $— | $3,491,039 | $— |
Affiliated issuers no longer in the portfolio at period end | $6,775,889 | $2,795,466 | $(12,994,433) |
TOTAL OF AFFILIATED COMPANIES TRANSACTIONS | $28,318,167 | $39,953,359 | $(43,736,172) |
Change in Unrealized Appreciation/ Depreciation* | Net Realized Gain/ (Loss)* | Value as of 7/31/2021 | Shares Held as of 7/31/2021 | Dividend Income* |
$40,012 | $506,022 | $313,455 | 5,164 | $— |
$(8,175,999) | $6,211,395 | $4,428,877 | 25,853 | $ 145,130 |
$1,080,820 | $— | $3,732,503 | 82,015 | $10,860 |
$709,535 | $(710,875) | $361,500 | 96,400 | $— |
$(334,166) | $— | $659,520 | 27,440 | $— |
$87,406 | $— | $2,019,727 | 96,407 | $— |
$114,418 | $(332,698) | $1,279,904 | 52,241 | $— |
$17,207 | $(778,467) | $431,744 | 51,830 | $— |
$(145,523) | $(1,257,095) | $3,894,310 | 140,894 | $— |
$639,651 | $2,313,364 | $7,330,860 | 82,994 | $— |
$1,138,403 | $— | $4,629,442 | 219,926 | $— |
$(492,048) | $3,915,126 | $— | — | $— |
$(5,320,284) | $9,866,772 | $29,081,842 | 881,164 | $155,990 |
* | A portion of the amount shown may have been recorded when the Fund did not have ownership of at least 5% of the voting shares. |
** | At July 31, 2021, the Fund no longer has ownership of at least 5% of the voting shares. |
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares* | Total of Affiliated Transactions | |
Value as of 7/31/2020 | $31,624,077 | $44,520,839 | $76,144,916 |
Purchases at Cost | $170,787,043 | $326,501,832 | $497,288,875 |
Proceeds from Sales | $(198,125,448) | $(351,434,267) | $(549,559,715) |
Change in Unrealized Appreciation/ Depreciation | N/A | $693 | $693 |
Net Realized Gain/(Loss) | N/A | $(2,685) | $(2,685) |
Value as of 7/31/2021 | $4,285,672 | $19,586,412 | $23,872,084 |
Shares Held as of 7/31/2021 | 4,285,672 | 19,578,581 | 23,864,253 |
Dividend Income | $8,348 | $28,918 | $37,266 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions. |
1 | Non-income-producing security. |
2 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. |
3 | 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 July 31, 2021, this restricted security amounted to $5,141,615, which represented 0.5% of total net assets. |
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 | The cost of investments for federal tax purposes amounts to $866,106,815. |
7 | 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 July 31, 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 | $970,624,072 | $— | $0 | $970,624,072 |
International | 49,004,946 | — | — | 49,004,946 |
Investment Companies | 23,872,084 | — | — | 23,872,084 |
TOTAL SECURITIES | $1,043,501,102 | $— | $0 | $1,043,501,102 |
The following acronym(s) are used throughout this portfolio: | ||
REIT | —Real Estate Investment Trust |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $17.19 | $18.87 | $21.19 | $18.69 | $15.08 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.01) | 0.04 | 0.01 | (0.01) | (0.02) |
Net realized and unrealized gain (loss) | 9.35 | (1.68) | (1.70) | 3.38 | 3.78 |
Total From Investment Operations | 9.34 | (1.64) | (1.69) | 3.37 | 3.76 |
Less Distributions: | |||||
Distributions from net investment income | (0.05) | (0.04) | — | — | — |
Distributions from net realized gain | — | — | (0.63) | (0.87) | (0.15) |
Total Distributions | (0.05) | (0.04) | (0.63) | (0.87) | (0.15) |
Net Asset Value, End of Period | $26.48 | $17.19 | $18.87 | $21.19 | $18.69 |
Total Return2 | 54.38% | (8.71)% | (7.69)% | 18.49% | 24.97% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.13% | 1.13% | 1.13% | 1.14% | 1.14% |
Net investment income (loss) | (0.03)% | 0.24% | 0.07% | (0.06)% | (0.13)% |
Expense waiver/reimbursement4 | 0.29% | 0.31% | 0.22% | 0.37% | 0.55% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $101,026 | $78,347 | $68,546 | $74,396 | $37,031 |
Portfolio turnover | 150% | 223% | 121% | 88% | 91% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $15.03 | $16.58 | $18.84 | $16.83 | $13.70 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.15) | (0.08) | (0.12) | (0.14) | (0.14) |
Net realized and unrealized gain (loss) | 8.14 | (1.47) | (1.51) | 3.02 | 3.42 |
Total From Investment Operations | 7.99 | (1.55) | (1.63) | 2.88 | 3.28 |
Less Distributions: | |||||
Distributions from net realized gain | — | — | (0.63) | (0.87) | (0.15) |
Net Asset Value, End of Period | $23.02 | $15.03 | $16.58 | $18.84 | $16.83 |
Total Return2 | 53.16% | (9.35)% | (8.35)% | 17.60% | 23.98% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.88% | 1.88% | 1.88% | 1.89% | 1.89% |
Net investment income (loss) | (0.78)% | (0.51)% | (0.69)% | (0.81)% | (0.89)% |
Expense waiver/reimbursement4 | 0.18% | 0.23% | 0.28% | 0.38% | 0.57% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $29,567 | $22,720 | $28,411 | $30,072 | $15,223 |
Portfolio turnover | 150% | 223% | 121% | 88% | 91% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $17.87 | $19.59 | $21.94 | $19.30 | $15.54 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.05 | 0.09 | 0.06 | 0.03 | 0.02 |
Net realized and unrealized gain (loss) | 9.71 | (1.74) | (1.76) | 3.50 | 3.90 |
Total From Investment Operations | 9.76 | (1.65) | (1.70) | 3.53 | 3.92 |
Less Distributions: | |||||
Distributions from net investment income | (0.10) | (0.07) | (0.02) | (0.02) | — |
Distributions from net realized gain | — | — | (0.63) | (0.87) | (0.16) |
Total Distributions | (0.10) | (0.07) | (0.65) | (0.89) | (0.16) |
Net Asset Value, End of Period | $27.53 | $17.87 | $19.59 | $21.94 | $19.30 |
Total Return2 | 54.73% | (8.45)% | (7.45)% | 18.78% | 25.24% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.88% | 0.88% | 0.88% | 0.89% | 0.89% |
Net investment income | 0.21% | 0.49% | 0.31% | 0.13% | 0.10% |
Expense waiver/reimbursement4 | 0.15% | 0.18% | 0.22% | 0.34% | 0.53% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $843,803 | $574,041 | $842,221 | $708,805 | $179,219 |
Portfolio turnover | 150% | 223% | 121% | 88% | 91% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $17.87 | $19.59 | $21.94 | $19.30 | $15.54 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.06 | 0.09 | 0.06 | 0.02 | 0.01 |
Net realized and unrealized gain (loss) | 9.71 | (1.74) | (1.76) | 3.51 | 3.91 |
Total From Investment Operations | 9.77 | (1.65) | (1.70) | 3.53 | 3.92 |
Less Distributions: | |||||
Distributions from net investment income | (0.10) | (0.07) | (0.02) | (0.02) | — |
Distributions from net realized gain | — | — | (0.63) | (0.87) | (0.16) |
Total Distributions | (0.10) | (0.07) | (0.65) | (0.89) | (0.16) |
Net Asset Value, End of Period | $27.54 | $17.87 | $19.59 | $21.94 | $19.30 |
Total Return2 | 54.79% | (8.44)% | (7.45)% | 18.78% | 25.24% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.87% | 0.87% | 0.87% | 0.88% | 0.88% |
Net investment income | 0.24% | 0.49% | 0.32% | 0.08% | 0.04% |
Expense waiver/reimbursement4 | 0.08% | 0.08% | 0.12% | 0.26% | 0.41% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $64,191 | $47,631 | $33,753 | $13,374 | $1,017 |
Portfolio turnover | 150% | 223% | 121% | 88% | 91% |
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. |
July 31, 2021
Assets: | |
Investment in securities, at value including $4,027,250 of securities loaned and $23,872,084 of investment in affiliated holdings and $29,081,842 of investment in affiliated companies* (identified cost $860,858,615) | $1,043,501,102 |
Income receivable | 282,911 |
Income receivable from affiliated holdings | 747 |
Receivable for investments sold | 4,608,681 |
Receivable for shares sold | 659,926 |
Total Assets | 1,049,053,367 |
Liabilities: | |
Payable for investments purchased | 4,885,658 |
Payable for shares redeemed | 916,949 |
Payable for collateral due to broker for securities lending (Note 2) | 4,305,673 |
Payable for investment adviser fee (Note 5) | 42,568 |
Payable for administrative fee (Note 5) | 4,472 |
Payable for distribution services fee (Note 5) | 18,711 |
Payable for other service fees (Notes 2 and 5) | 51,613 |
Accrued expenses (Note 5) | 241,059 |
Total Liabilities | 10,466,703 |
Net assets for 38,086,250 shares outstanding | $1,038,586,664 |
Net Assets Consist of: | |
Paid-in capital | $754,483,083 |
Total distributable earnings (loss) | 284,103,581 |
Total Net Assets | $1,038,586,664 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($101,025,749 ÷ 3,815,129 shares outstanding), no par value, unlimited shares authorized | $26.48 |
Offering price per share (100/94.50 of $26.48) | $28.02 |
Redemption proceeds per share | $26.48 |
Class C Shares: | |
Net asset value per share ($29,566,891 ÷ 1,284,437 shares outstanding), no par value, unlimited shares authorized | $23.02 |
Offering price per share | $23.02 |
Redemption proceeds per share (99.00/100 of $23.02) | $22.79 |
Institutional Shares: | |
Net asset value per share ($843,803,421 ÷ 30,655,466 shares outstanding), no par value, unlimited shares authorized | $27.53 |
Offering price per share | $27.53 |
Redemption proceeds per share | $27.53 |
Class R6 Shares: | |
Net asset value per share ($64,190,603 ÷ 2,331,218 shares outstanding), no par value, unlimited shares authorized | $27.54 |
Offering price per share | $27.54 |
Redemption proceeds per share | $27.54 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31, 2021
Investment Income: | |
Dividends (including $167,002 received from affiliated companies and holdings* and net of foreign taxes withheld of $12,763) | $9,188,742 |
Net income on securities loaned (includes $26,254 earned from affiliated holdings* related to cash collateral balances) (Note 2) | 329,189 |
TOTAL INCOME | 9,517,931 |
Expenses: | |
Investment adviser fee (Note 5) | 6,956,258 |
Administrative fee (Note 5) | 682,755 |
Custodian fees | 94,184 |
Transfer agent fees (Note 2) | 983,631 |
Directors’/Trustees’ fees (Note 5) | 5,266 |
Auditing fees | 31,900 |
Legal fees | 11,957 |
Portfolio accounting fees | 154,957 |
Distribution services fee (Note 5) | 193,493 |
Other service fees (Notes 2 and 5) | 292,392 |
Share registration costs | 100,263 |
Printing and postage | 63,855 |
Miscellaneous (Note 5) | 40,759 |
TOTAL EXPENSES | 9,611,670 |
Waiver and Reimbursements: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (654,804) |
Reimbursement of other operating expenses (Notes 2 and 5) | (778,817) |
TOTAL WAIVER AND REIMBURSEMENTS | (1,433,621) |
Net expenses | 8,178,049 |
Net investment income | 1,339,882 |
Realized and Unrealized Gain (Loss) on Investments: | |
Net realized gain on investments (including net realized gain of $9,864,087 on sales of investments in affiliated companies and holdings*) | 219,512,886 |
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $(5,319,591) of investments in affiliated companies and holdings*) | 129,381,772 |
Net realized and unrealized gain (loss) on investments | 348,894,658 |
Change in net assets resulting from operations | $350,234,540 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31 | 2021 | 2020 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $1,339,882 | $3,688,491 |
Net realized gain (loss) | 219,512,886 | (93,227,069) |
Net change in unrealized appreciation/depreciation | 129,381,772 | (25,083,286) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 350,234,540 | (114,621,864) |
Distributions to Shareholders: | ||
Class A Shares | (196,391) | (241,559) |
Institutional Shares | (2,867,383) | (3,139,873) |
Class R6 Shares | (226,555) | (217,595) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (3,290,329) | (3,599,027) |
Share Transactions: | ||
Proceeds from sale of shares | 309,924,317 | 332,219,364 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Funds | — | 244,171,911 |
Net asset value of shares issued to shareholders in payment of distributions declared | 2,877,418 | 3,176,105 |
Cost of shares redeemed | (343,897,658) | (711,539,671) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (31,095,923) | (131,972,291) |
Change in net assets | 315,848,288 | (250,193,182) |
Net Assets: | ||
Beginning of period | 722,738,376 | 972,931,558 |
End of period | $1,038,586,664 | $722,738,376 |
PNC Fund | Share Class Exchanged | Fund Shares Received |
Multi-Factor Small Cap Core Fund | A | 1.172 Class A Shares |
C | 1.333 Class C Shares | |
I | 1.137 Institutional Shares | |
R6 | 1.135 Institutional Shares | |
Multi-Factor Small Cap Value Fund | A | 1.042 Class A Shares |
C | 1.039 Class C Shares | |
I | 1.102 Institutional Shares | |
Small Cap Fund | A | 0.494 Class A Shares |
C | 0.391 Class C Shares | |
I | 0.529 Institutional Shares |
Shares of the Fund Issued | Acquired Funds’ Net Assets Received | Unrealized Appreciation1 | Net Assets of the Fund Immediately Prior to Combination | Net Assets of the Fund Immediately After Combination |
12,798,626 | $244,171,911 | $71,610,835 | $881,235,561 | $1,125,407,472 |
1 | Unrealized Appreciation is included in the Net Assets Received amount shown above. |
Net investment income | $4,044,354 |
Net realized and unrealized loss on investments | (123,022,814) |
Net decrease in net assets resulting from operations | $(118,978,460) |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $225,159 | $(201,687) |
Class C Shares | 33,988 | (25,962) |
Institutional Shares | 716,754 | (551,168) |
Class R6 Shares | 7,730 | — |
TOTAL | $983,631 | $(778,817) |
Other Service Fees Incurred | |
Class A Shares | $229,756 |
Class C Shares | 62,636 |
TOTAL | $292,392 |
Market Value of Securities Loaned | Collateral Received |
$4,027,250 | $4,305,673 |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 842,707 | $20,026,192 | 1,048,052 | $17,685,551 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Funds | — | — | 3,213,962 | 59,940,394 |
Shares issued to shareholders in payment of distributions declared | 7,630 | 172,214 | 11,235 | 216,722 |
Shares redeemed | (1,591,861) | (35,663,870) | (3,349,156) | (57,418,270) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | (741,524) | $(15,465,464) | 924,093 | $20,424,397 |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 205,908 | $4,350,950 | 212,811 | $3,235,458 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Funds | — | — | 474,115 | 7,751,772 |
Shares issued to shareholders in payment of distributions declared | — | — | — | — |
Shares redeemed | (433,456) | (7,859,418) | (888,543) | (13,324,178) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (227,548) | $(3,508,468) | (201,617) | $(2,336,948) |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 10,605,368 | $264,872,807 | 16,340,991 | $281,920,986 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Funds | — | — | 8,269,174 | 160,173,907 |
Shares issued to shareholders in payment of distributions declared | 107,874 | 2,526,411 | 140,423 | 2,809,864 |
Shares redeemed | (12,187,496) | (273,756,445) | (35,614,006) | (613,866,572) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (1,474,254) | $(6,357,227) | (10,863,418) | $(168,961,815) |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 851,601 | $20,674,368 | 1,624,311 | $29,377,369 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Funds | — | — | 841,375 | 16,305,838 |
Shares issued to shareholders in payment of distributions declared | 7,631 | 178,793 | 7,469 | 149,519 |
Shares redeemed | (1,193,084) | (26,617,925) | (1,530,700) | (26,930,651) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | (333,852) | $(5,764,764) | 942,455 | $18,902,075 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (2,777,178) | $(31,095,923) | (9,198,487) | $(131,972,291) |
Increase (Decrease) | |
Paid-In Capital | Total Distributable Earnings (Loss) |
$(46) | $46 |
2021 | 2020 | |
Ordinary income1 | $3,290,329 | $3,599,027 |
1 | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Undistributed ordinary income2 | $89,481,322 |
Net unrealized appreciation | $177,394,287 |
Undistributed long-term capital gains | $17,949,612 |
Capital loss carryforwards and deferrals | $(721,640) |
2 | For tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings. |
Short-Term | Long-Term | Total |
$721,640 | $— | $721,640 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Percentage of Average Daily Net Assets of Class | |
Class A Shares | 0.05% |
Class C Shares | 0.75% |
Distribution Services Fees Incurred | |
Class C Shares | $193,493 |
Purchases | $1,269,474,102 |
Sales | $1,315,177,342 |
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/ernstyoungsig.jpg)
Beginning Account Value 2/1/2021 | Ending Account Value 7/31/2021 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,155.30 | $6.04 |
Class C Shares | $1,000 | $1,151.00 | $10.03 |
Institutional Shares | $1,000 | $1,157.20 | $4.71 |
Class R6 Shares | $1,000 | $1,157.10 | $4.65 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,019.19 | $5.66 |
Class C Shares | $1,000 | $1,015.47 | $9.39 |
Institutional Shares | $1,000 | $1,020.43 | $4.41 |
Class R6 Shares | $1,000 | $1,020.48 | $4.36 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.13% |
Class C Shares | 1.88% |
Institutional Shares | 0.88% |
Class R6 Shares | 0.87% |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: May 2006 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2016 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company; President of some of the Funds in the Federated Hermes Fund Family and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; President and CEO of Passport Research, Ltd.; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Hermes, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. and President, Technology, Federated Services Company. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee, 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: Chairman of the Board of Directors, 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 Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Director, Member of the Audit Committee, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor 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.; and Director and Vice Chair, Our Campaign for the Church Alive!, Inc. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity and Director, The Golisano Children’s Museum of Naples, Florida. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
Madelyn A. Reilly Birth Date: February 2, 1956 Trustee Indefinite Term Began serving: November 2020 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Senior Vice President for Legal Affairs, General Counsel and Secretary of the Board of Trustees, 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 Director of Risk Management and Associate General Counsel, 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 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, 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 Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: June 2006 | Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, 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. |
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: June 2012 | Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments. |
Annual Evaluation of Adequacy and Effectiveness
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/edelivery.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/fhilogok11p.jpg)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31421R791
CUSIP 31421R783
CUSIP 31421R627
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/fscbug_small.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/img6193a7571.gif)
Share Class | Ticker | A | QASGX | C | QCSGX | |
Institutional | QISGX | R6 | QLSGX |
Federated Hermes MDT Small Cap Growth Fund
A Portfolio of Federated Hermes MDT Series
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/donahuechrissigsmall.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/fmscgar37313.jpg)
1 Year | 5 Years | 10 Years | |
Class A Shares | 34.22% | 15.78% | 13.66% |
Class C Shares | 39.93% | 16.22% | 13.62% |
Institutional Shares | 42.40% | 17.39% | 14.59% |
Class R6 Shares4 | 42.38% | 17.40% | 14.50% |
R2000G | 41.00% | 16.40% | 13.56% |
MSGFA | 45.68% | 19.18% | 14.30% |
Sector Composition | Percentage of Total Net Assets |
Health Care | 27.8% |
Information Technology | 22.4% |
Consumer Discretionary | 17.4% |
Industrials | 11.9% |
Financials | 5.8% |
Real Estate | 4.0% |
Consumer Staples | 3.3% |
Communication Services | 2.7% |
Materials | 1.6% |
Energy | 1.5% |
Securities Lending Collateral2 | 0.7% |
Cash Equivalents3 | 1.9% |
Other Assets and Liabilities—Net4 | (1.0)% |
TOTAL | 100% |
1 | Except for Securities Lending Collateral, Cash Equivalents and Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS), except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
2 | Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. |
3 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing cash collateral for securities lending. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares | Value | ||
COMMON STOCKS— 98.4% | |||
Communication Services— 2.7% | |||
84,727 | 1 | AMC Networks, Inc. | $4,239,739 |
253,949 | 1 | Cars.com, Inc. | 3,067,704 |
2,042 | 1 | Chicken Soup For The Soul Entertainment, Inc. | 73,267 |
50,567 | Cogent Communications Holdings, Inc. | 3,924,505 | |
12,468 | 1 | EverQuote, Inc. | 376,284 |
332,755 | 1 | Yelp, Inc. | 12,445,037 |
TOTAL | 24,126,536 | ||
Consumer Discretionary— 17.4% | |||
107,920 | 1 | Abercrombie & Fitch Co., Class A | 4,080,455 |
135,086 | 1 | Academy Sports and Outdoors, Inc. | 5,004,936 |
9,319 | American Eagle Outfitters, Inc. | 321,226 | |
25,214 | American Outdoor Brands Corp. | 591,268 | |
62,455 | Big Lots, Inc. | 3,598,033 | |
111,453 | 1 | Bloomin Brands, Inc. | 2,800,814 |
63,513 | 1 | Boot Barn Holdings, Inc. | 5,488,793 |
5,744 | 1 | Brinker International, Inc. | 312,129 |
153,672 | Camping World Holdings, Inc. | 6,048,530 | |
107,478 | 1 | CROCs, Inc. | 14,596,587 |
194,247 | 1 | Everi Holdings, Inc. | 4,407,464 |
18,965 | 1 | Fox Factory Holding Corp. | 3,063,606 |
24,922 | 1 | Funko, Inc. | 465,044 |
25,025 | 1 | Groupon, Inc. | 910,159 |
109,217 | 1 | Houghton Mifflin Harcourt Co. | 1,236,336 |
78,097 | 1 | International Game Technology PLC | 1,464,319 |
55,336 | 1 | iRobot Corp. | 4,841,900 |
35,591 | Jack in the Box, Inc. | 3,874,436 | |
33,030 | 1,2 | Kirkland’s, Inc. | 642,764 |
9,612 | Kontoor Brands, Inc. | 532,313 | |
51,427 | 1 | Lakes Gaming, Inc. | 2,340,443 |
16,947 | 1 | LGI Homes, Inc. | 2,896,242 |
32,929 | 1 | Lovesac Co./The | 1,998,790 |
11,968 | 1 | National Vision Holdings, Inc. | 646,033 |
18,208 | 1 | Neogames SA | 878,536 |
26,552 | 1 | Onewater Marine, Inc. | 1,247,413 |
15,766 | Papa Johns International, Inc. | 1,799,216 | |
239,681 | 1 | Party City Holdco, Inc. | 2,046,876 |
139,473 | 1 | Perdoceo Education Corp. | 1,654,150 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Consumer Discretionary— continued | |||
177,104 | 1 | Red Rock Resorts, Inc. | $6,977,898 |
89,309 | 1 | Revolve Group, Inc. | 6,216,799 |
2,299 | 1 | RH | 1,526,720 |
199,438 | 1 | Sally Beauty Holdings, Inc. | 3,773,367 |
32,401 | 1 | Scientific Games Corp. | 1,999,466 |
32,424 | 1 | SeaWorld Entertainment, Inc. | 1,537,222 |
82,230 | Shutterstock, Inc. | 8,921,133 | |
12,810 | Signet Jewelers Ltd. | 824,195 | |
15,189 | 1 | Sleep Number Corp. | 1,506,901 |
332,294 | 1 | Sonos, Inc. | 11,091,974 |
8,686 | The Aaron’s Company, Inc. | 250,765 | |
48,220 | Wingstop, Inc. | 8,260,568 | |
85,142 | 1,3 | XPEL, Inc. | 7,884,149 |
161,200 | 1 | YETI Holdings, Inc. | 15,528,396 |
TOTAL | 156,088,364 | ||
Consumer Staples— 3.3% | |||
142,998 | 1 | Bellring Brands, Inc. | 4,728,944 |
106,377 | 1 | BJ’s Wholesale Club Holdings, Inc. | 5,386,931 |
104,269 | 1 | Central Garden & Pet Co., Class A | 4,515,890 |
20,765 | Coca-Cola Bottling Co. | 8,288,350 | |
63,944 | Energizer Holdings, Inc. | 2,740,000 | |
578,441 | 1 | Veru, Inc. | 3,973,890 |
TOTAL | 29,634,005 | ||
Energy— 1.5% | |||
131,658 | 1 | Antero Resources Corp. | 1,790,549 |
50,592 | Cactus, Inc. | 1,823,336 | |
10,533 | 1 | Callon Petroleum Corp. | 414,579 |
107,524 | 1 | Centennial Resource Development, Inc. | 560,200 |
31,803 | 1 | Laredo Petroleum | 1,751,073 |
435,941 | 1 | Magnolia Oil & Gas Corp. | 6,103,174 |
29,345 | Matador Resources Co. | 906,760 | |
TOTAL | 13,349,671 | ||
Financials— 5.8% | |||
168,505 | Artisan Partners Asset Management, Inc. | 8,103,405 | |
24,541 | CNB Financial Corp. | 565,916 | |
41,164 | Cowen Group, Inc. | 1,645,737 | |
48,612 | 1 | Customers Bancorp, Inc. | 1,760,727 |
120,802 | 1 | Donnelley Financial Solutions, Inc. | 3,891,032 |
533,842 | Eastern Bankshares, Inc. | 9,742,617 | |
26,294 | Great Western Bancorp, Inc. | 809,855 | |
127,893 | 1 | Green Dot Corp. | 5,892,031 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Financials— continued | |||
36,685 | Guaranty Bancshares, Inc. | $1,227,113 | |
39,779 | Houlihan Lokey, Inc. | 3,544,309 | |
172,321 | Moelis & Co. | 10,210,019 | |
19,166 | Origin Bancorp, Inc. | 779,673 | |
72,336 | StepStone Group, Inc. | 3,292,011 | |
TOTAL | 51,464,445 | ||
Health Care— 27.8% | |||
51,904 | 1,4 | Adeptus Health, Inc. | 0 |
962,850 | 1 | Akebia Therapeutics, Inc. | 2,378,239 |
37,653 | 1 | Alector, Inc. | 904,990 |
11,008 | 1 | Alkermes, Inc. | 284,777 |
33,798 | 1 | Amphastar Pharmaceuticals, Inc. | 708,068 |
23,779 | 1 | AnaptysBio, Inc. | 546,441 |
135,073 | 1 | ANI Pharmaceuticals, Inc. | 4,583,027 |
196,022 | 1 | Antigenics, Inc. | 1,015,394 |
132,923 | 1 | Apellis Pharmaceuticals, Inc. | 8,505,743 |
13,276 | 1,2 | Apollo Medical Holdings, Inc. | 1,173,200 |
33,931 | 1,2 | Aravive, Inc. | 140,814 |
53,500 | 1 | Arvinas, Inc. | 5,408,850 |
362,368 | 1 | Assembly Biosciences, Inc. | 1,257,417 |
44,624 | 1 | Atreca, Inc. | 244,986 |
10,419 | 1 | AtriCure, Inc. | 879,989 |
89,064 | 1 | Avid Bioservices, Inc. | 2,284,492 |
55,080 | 1 | AxoGen, Inc. | 1,121,980 |
19,999 | 1 | Axonics, Inc. | 1,358,932 |
293,809 | 1 | BioCryst Pharmaceuticals, Inc. | 4,736,201 |
81,948 | 1 | Biohaven Pharmaceutical Holding Co. Ltd. | 10,326,267 |
20,561 | 1 | Blueprint Medicines Corp. | 1,806,695 |
8,224 | 1,2 | Cassava Sciences, Inc. | 571,815 |
373,362 | 1 | Catalyst Pharmaceutical Partners, Inc. | 2,180,434 |
48,932 | 1,2 | Co-Diagnostics, Inc. | 494,703 |
89,399 | 1 | Collegium Pharmaceutical, Inc. | 2,225,141 |
103,759 | 1 | Community Health Systems, Inc. | 1,382,070 |
19,619 | 1,2 | Cortexyme, Inc. | 1,108,670 |
281,779 | 1 | Cross Country Healthcare, Inc. | 4,626,811 |
77,434 | 1 | Cutera, Inc. | 4,022,696 |
478,874 | 1 | Cytomx Therapeutics, Inc. | 2,590,708 |
73,675 | 1 | Denali Therapeutics, Inc. | 3,759,635 |
223,465 | 1 | Dicerna Pharmaceuticals, Inc. | 8,382,172 |
73,633 | 1 | Eagle Pharmaceuticals, Inc. | 3,423,934 |
88,954 | 1 | Endo International PLC | 450,107 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Health Care— continued | |||
81,173 | 1 | Evolent Health, Inc. | $1,862,109 |
70,764 | 1 | Evolus, Inc. | 765,666 |
212,114 | 1 | GlycoMimetics, Inc. | 428,470 |
91,049 | 1 | Harpoon Therapeutics, Inc. | 891,370 |
79,680 | 1 | Health Catalyst, Inc. | 4,626,221 |
195,405 | 1 | Homology Medicines, Inc. | 1,242,776 |
108,828 | 1 | Hookipa Pharma, Inc. | 841,240 |
38,229 | 1 | IDEAYA Biosciences, Inc. | 936,610 |
53,411 | 1 | Inogen, Inc. | 4,260,595 |
324,022 | 1 | Inovalon Holdings, Inc. | 12,273,953 |
68,465 | 1 | Intellia Therapeutics, Inc. | 9,711,760 |
24,797 | 1 | iRhythm Technologies, Inc. | 1,267,623 |
316,943 | 1 | Ironwood Pharmaceuticals, Inc. | 4,205,834 |
49,880 | 1 | Krystal Biotech, Inc. | 2,914,987 |
96,760 | 2 | LeMaitre Vascular, Inc. | 5,269,550 |
5,394 | 1 | LHC Group, Inc. | 1,160,681 |
32,139 | 1 | Ligand Pharmaceuticals, Inc., Class B | 3,648,098 |
3,298 | 1 | Madrigal Pharmaceuticals, Inc. | 287,981 |
84,062 | 1 | Magenta Therapeutics, Inc. | 598,521 |
101,846 | 1,2 | Mannkind Corp. | 417,569 |
45,557 | 1 | MeiraGTx Holdings PLC | 637,342 |
14,699 | 1 | Merit Medical Systems, Inc. | 1,030,253 |
15,493 | 1 | Morphic Holding, Inc. | 892,707 |
374,788 | 1 | NextCure, Inc. | 2,597,281 |
42,419 | 1 | NextGen Healthcare, Inc. | 688,036 |
1,782 | 1 | Omnicell, Inc. | 261,063 |
113,620 | 1 | OptimizeRX Corp. | 6,279,777 |
110,829 | 1 | Organogenesis Holdings, Inc. | 1,700,117 |
84,013 | 1 | Ortho Clinical Diagnostics Holdings PLC | 1,887,772 |
34,780 | 1 | Orthofix Medical, Inc. | 1,382,157 |
35,054 | 1 | Pacira BioSciences, Inc. | 2,066,433 |
75,623 | 1,2 | PAVmed, Inc. | 519,530 |
38,233 | 1 | Precision Biosciences, Inc. | 376,977 |
46,601 | 1 | Prestige Consumer Healthcare, Inc. | 2,448,883 |
212,564 | 1 | Progyny, Inc. | 11,837,689 |
118,841 | 1 | Protagonist Therapeutics, Inc. | 5,874,311 |
30,827 | 1 | Prothena Corp. PLC | 1,544,433 |
148,540 | 1,2 | Puma Biotechnology, Inc. | 1,117,021 |
28,570 | 1 | Radius Health, Inc. | 432,264 |
144,208 | Select Medical Holdings Corp. | 5,689,006 | |
225,611 | 1 | Selecta Biosciences, Inc. | 780,614 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Health Care— continued | |||
95,600 | 1,2 | Senseonics Holdings, Inc. | $293,492 |
167,404 | 1,2 | Sesen Bio, Inc. | 624,417 |
94,191 | 1 | Shockwave Medical, Inc. | 17,142,762 |
111,500 | 1 | SI-BONE, Inc. | 3,382,910 |
24,148 | 1 | Staar Surgical Co. | 3,089,012 |
34,944 | 1,2 | Stoke Therapeutics, Inc. | 1,000,447 |
80,841 | 1 | Surgery Partners, Inc. | 4,410,685 |
68,829 | 1 | The Joint Corp. | 5,436,803 |
150,306 | 1 | Translate Bio, Inc. | 4,154,458 |
207,043 | 1 | Vanda Pharmaceuticals, Inc. | 3,376,871 |
57,869 | 1,2 | Verastem, Inc. | 186,917 |
44,719 | 1 | Vericel Corp. | 2,367,424 |
144,865 | 1 | Vocera Communications, Inc. | 6,078,535 |
354,898 | 1 | Voyager Therapeutics, Inc. | 1,117,929 |
115,088 | 1 | Xencor, Inc. | 3,542,409 |
TOTAL | 248,745,749 | ||
Industrials— 11.9% | |||
99,651 | Advanced Drainage System, Inc. | 12,166,391 | |
7,074 | 1 | Allegiant Travel Co. | 1,344,909 |
67,000 | Apogee Enterprises, Inc. | 2,657,890 | |
103,228 | 1 | Atkore, Inc. | 7,753,455 |
83,470 | 1 | Atlas Air Worldwide Holdings, Inc. | 5,589,986 |
50,108 | 1 | Avis Budget Group, Inc. | 4,147,439 |
32,379 | 1 | Beacon Roofing Supply, Inc. | 1,731,629 |
3,145 | 1 | BlueLinx Holdings, Inc. | 135,109 |
173,929 | Boise Cascade Co. | 8,896,468 | |
41,144 | 1 | Cimpress PLC | 4,206,974 |
163,237 | 1 | Echo Global Logistics, Inc. | 5,048,920 |
36,543 | 1 | Evoqua Water Technologies Corp. | 1,206,284 |
108,824 | 1 | Franklin Covey Co. | 3,981,870 |
99,652 | 1 | GMS, Inc. | 4,895,903 |
113,267 | Heidrick & Struggles International, Inc. | 4,837,634 | |
19,715 | 1 | Herc Holdings, Inc. | 2,445,449 |
196,159 | 1 | Mistras Group, Inc. | 2,059,670 |
303,184 | 1 | MRC Global, Inc. | 2,780,197 |
58,981 | 1 | MYR Group, Inc. | 5,640,353 |
155,446 | 1 | Resideo Technologies, Inc. | 4,585,657 |
81,329 | REV Group, Inc. | 1,228,881 | |
20,501 | Rexnord Corp. | 1,154,821 | |
9,715 | 1 | Saia, Inc. | 2,195,590 |
28,082 | Tennant Co. | 2,221,848 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Industrials— continued | |||
5,839 | Terex Corp. | $279,805 | |
105,253 | 1 | TriNet Group, Inc. | 8,733,894 |
24,116 | 1 | Upwork, Inc. | 1,248,968 |
82,476 | Werner Enterprises, Inc. | 3,769,978 | |
TOTAL | 106,945,972 | ||
Information Technology— 22.4% | |||
147,863 | 1 | Altair Engineering, Inc. | 10,314,923 |
56,551 | 1 | Ambarella, Inc. | 5,569,708 |
120,650 | 1 | Asana, Inc. | 8,573,389 |
182,294 | 1 | Avaya Holdings Corp. | 4,415,161 |
142,936 | 1 | Axcelis Technologies, Inc. | 5,510,183 |
57,713 | 1 | Blackbaud, Inc. | 4,116,668 |
115,658 | 1 | Box, Inc. | 2,766,539 |
178,566 | 1 | Brightcove, Inc. | 2,048,152 |
109,589 | 1 | Cambium Networks Corp. | 4,827,395 |
150,254 | 1 | ChannelAdvisor Corp. | 3,499,416 |
84,532 | 1,2 | Coda Octopus Group, Inc. | 765,860 |
278,777 | 1 | Commvault Systems, Inc. | 21,072,753 |
139,914 | 1 | Domo, Inc. | 12,358,604 |
50,524 | Evertec, Inc. | 2,207,899 | |
21,248 | 1 | Evo Payments, Inc. | 620,442 |
33,385 | 1 | Exlservice Holding, Inc. | 3,779,850 |
357,846 | 1 | Extreme Networks, Inc. | 3,939,884 |
48,385 | 1 | FormFactor, Inc. | 1,802,825 |
215,794 | 1 | Grid Dynamics Holdings, Inc. | 4,542,464 |
43,186 | 1 | Ichor Holdings Ltd. | 2,227,102 |
161,433 | 1 | MA-COM Technology Solutions Holdings, Inc. | 9,963,645 |
89,084 | 1 | Mimecast Ltd. | 4,948,616 |
24,281 | 1 | OSI Systems, Inc. | 2,429,314 |
78,678 | 1 | Rapid7, Inc. | 8,949,622 |
29,216 | 1 | Rimini Street, Inc. | 253,887 |
172,715 | 1 | Secureworks Corp. | 3,464,663 |
41,939 | 1 | Semtech Corp. | 2,596,443 |
4,143 | 1 | Sitime Corp. | 561,957 |
84,222 | 1 | SMART Global Holdings, Inc. | 3,944,958 |
119,977 | 1 | Sprout Social, Inc. | 10,658,757 |
119,992 | 1 | SPS Commerce, Inc. | 13,073,128 |
12,896 | TTEC Holdings, Inc. | 1,347,632 | |
45,167 | 1 | Ultra Clean Holdings, Inc. | 2,439,470 |
163,745 | 1 | Workiva, Inc. | 21,249,189 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Information Technology— continued | |||
534,113 | 1 | Zuora, Inc. | $9,234,814 |
TOTAL | 200,075,312 | ||
Materials— 1.6% | |||
132,089 | 1 | Koppers Holdings, Inc. | 4,056,453 |
15,427 | Louisiana-Pacific Corp. | 855,273 | |
19,079 | Myers Industries, Inc. | 404,093 | |
86,100 | 1,4 | Rentech, Inc. | 0 |
103,128 | 1 | Ryerson Holding Corp. | 1,622,204 |
137,495 | Trinseo SA | 7,474,228 | |
TOTAL | 14,412,251 | ||
Real Estate— 4.0% | |||
20,605 | 1 | Marcus & Millichap Co., Inc. | 819,873 |
195,975 | National Storage Affiliates Trust | 10,615,966 | |
127,115 | Plymouth Industrial REIT, Inc. | 2,933,814 | |
235,040 | RMR Group, Inc./The | 9,222,970 | |
1,077,085 | Uniti Group, Inc. | 12,612,665 | |
TOTAL | 36,205,288 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $721,367,728) | 881,047,593 | ||
INVESTMENT COMPANIES— 2.6% | |||
6,436,827 | Federated Hermes Government Obligations Fund, Premier Shares, 0.01%5 | 6,436,827 | |
16,724,292 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.02%5 | 16,730,982 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $23,167,809) | 23,167,809 | ||
TOTAL INVESTMENT IN SECURITIES—101.0% (IDENTIFIED COST $744,535,537)6 | 904,215,402 | ||
OTHER ASSETS AND LIABILITIES - NET—(1.0)%7 | (9,210,372) | ||
TOTAL NET ASSETS—100% | $895,005,030 |
Value as of 7/31/2020 | Purchases at Cost* | Proceeds from Sales* | |
Consumer Discretionary: | |||
Wingstop, Inc.** | $19,605,937 | $6,652,308 | $(16,871,705) |
Lovesac Co./The | $872,806 | $3,333,696 | $(3,811,679) |
Health Care: | |||
Alector, Inc. | $411,776 | $1,369,768 | $(361,562) |
Amphastar Pharmaceuticals, Inc. | $— | $686,809 | $— |
AnaptysBio, Inc.** | $5,832,007 | $— | $(7,709,808) |
IDEAYA Biosciences, Inc. | $— | $1,853,821 | $(808,643) |
Translate Bio, Inc. | $— | $9,019,559 | $(3,986,353) |
Information Technology: | |||
Domo, Inc. | $3,144,887 | $11,036,800 | $(5,667,668) |
Grid Dynamics Holdings, Inc. | $— | $3,430,951 | $— |
Financials: | |||
StepStone Group, Inc. | $— | $2,459,000 | $— |
Affiliated issuers no longer in the portfolio at period end | $4,484,899 | $3,849,920 | $(10,964,411) |
TOTAL OF AFFILIATED COMPANIES TRANSACTIONS | $34,352,312 | $43,692,632 | $(50,181,829) |
Change in Unrealized Appreciation/ Depreciation | Net Realized Gain/ (Loss)* | Value as of 7/31/2021 | Shares Held as of 7/31/2021 | Dividend Income* |
$(8,381,418) | $7,255,446 | $8,260,568 | 48,220 | $193,524 |
$957,042 | $646,925 | $1,998,790 | 32,929 | $— |
$(431,833) | $(83,159) | $904,990 | 37,653 | $— |
$21,259 | $— | $708,068 | 33,798 | $— |
$(269,798) | $2,694,040 | $546,441 | 23,779 | $— |
$80,159 | $(188,727) | $936,610 | 38,229 | $— |
$7,629 | $(886,377) | $4,154,458 | 150,306 | $— |
$1,737,366 | $2,107,219 | $12,358,604 | 139,914 | $— |
$1,111,513 | $— | $4,542,464 | 215,794 | $— |
$833,011 | $— | $3,292,011 | 72,336 | $— |
$(444,139) | $3,073,731 | $— | — | $— |
$(4,779,209) | $14,619,098 | $37,703,004 | 792,958 | $193,524 |
* | A portion of the amount shown may have been recorded when the Fund did not have ownership of at least 5% of the voting shares. |
** | At July 31, 2021, the Fund no longer has ownership of at least 5% of the voting shares. |
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares* | Total of Affiliated Transactions | |
Value as of 7/31/2020 | $35,185,159 | $62,871,883 | $98,057,042 |
Purchases at Cost | $149,371,203 | $323,592,884 | $472,964,087 |
Proceeds from Sales | $(178,119,535) | $(369,732,026) | $(547,851,561) |
Change in Unrealized Appreciation/ Depreciation | N/A | $— | $— |
Net Realized Gain/(Loss) | N/A | $(1,759) | $(1,759) |
Value as of 7/31/2021 | $6,436,827 | $16,730,982 | $23,167,809 |
Shares Held as of 7/31/2021 | 6,436,827 | 16,724,292 | 23,161,119 |
Dividend Income | $9,573 | $37,342 | $46,915 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions. |
1 | Non-income-producing security. |
2 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. |
3 | 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 July 31, 2021, these restricted securities amounted to $7,884,149, which represented 0.9% of total net assets. |
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 | The cost of investments for federal tax purposes amounts to $750,445,756. |
7 | 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 July 31, 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 | $829,550,864 | $— | $0 | $829,550,864 |
International | 51,496,729 | — | — | 51,496,729 |
Investment Companies | 23,167,809 | — | — | 23,167,809 |
TOTAL SECURITIES | $904,215,402 | $— | $0 | $904,215,402 |
The following acronym(s) are used throughout this portfolio: | ||
REIT | —Real Estate Investment Trust |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $23.89 | $23.30 | $25.67 | $21.89 | $17.66 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.15) | (0.07) | (0.08) | (0.11) | (0.08) |
Net realized and unrealized gain (loss) | 10.16 | 0.66 | (0.84) | 5.09 | 4.63 |
Total From Investment Operations | 10.01 | 0.59 | (0.92) | 4.98 | 4.55 |
Less Distributions: | |||||
Distributions from net realized gain | (0.14) | — | (1.45) | (1.20) | (0.32) |
Net Asset Value, End of Period | $33.76 | $23.89 | $23.30 | $25.67 | $21.89 |
Total Return2 | 42.03% | 2.53% | (2.83)% | 23.50% | 26.00% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.13% | 1.13% | 1.13% | 1.14% | 1.15% |
Net investment income (loss) | (0.50)% | (0.32)% | (0.36)% | (0.48)% | (0.39)% |
Expense waiver/reimbursement4 | 0.23% | 0.30% | 0.29% | 0.44% | 0.70% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $129,226 | $92,389 | $82,170 | $82,953 | $47,681 |
Portfolio turnover | 163% | 227% | 142% | 129% | 118% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $20.69 | $20.32 | $22.77 | $19.69 | $16.03 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.33) | (0.21) | (0.23) | (0.26) | (0.21) |
Net realized and unrealized gain (loss) | 8.77 | 0.58 | (0.77) | 4.54 | 4.19 |
Total From Investment Operations | 8.44 | 0.37 | (1.00) | 4.28 | 3.98 |
Less Distributions: | |||||
Distributions from net realized gain | (0.14) | — | (1.45) | (1.20) | (0.32) |
Net Asset Value, End of Period | $28.99 | $20.69 | $20.32 | $22.77 | $19.69 |
Total Return2 | 40.93% | 1.82% | (3.58)% | 22.54% | 25.08% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.88% | 1.88% | 1.88% | 1.89% | 1.90% |
Net investment income (loss) | (1.25)% | (1.07)% | (1.12)% | (1.23)% | (1.15)% |
Expense waiver/reimbursement4 | 0.15% | 0.20% | 0.29% | 0.41% | 0.66% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $28,084 | $17,481 | $22,639 | $18,008 | $10,007 |
Portfolio turnover | 163% | 227% | 142% | 129% | 118% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $25.05 | $24.37 | $26.71 | $22.67 | $18.24 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.08) | (0.02) | (0.02) | (0.06) | (0.03) |
Net realized and unrealized gain (loss) | 10.67 | 0.70 | (0.87) | 5.30 | 4.78 |
Total From Investment Operations | 10.59 | 0.68 | (0.89) | 5.24 | 4.75 |
Less Distributions: | |||||
Distributions from net realized gain | (0.14) | — | (1.45) | (1.20) | (0.32) |
Net Asset Value, End of Period | $35.50 | $25.05 | $24.37 | $26.71 | $22.67 |
Total Return2 | 42.40% | 2.79% | (2.60)% | 23.85% | 26.27% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.88% | 0.88% | 0.88% | 0.89% | 0.90% |
Net investment income (loss) | (0.25)% | (0.07)% | (0.10)% | (0.25)% | (0.15)% |
Expense waiver/reimbursement4 | 0.16% | 0.19% | 0.25% | 0.41% | 0.63% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $428,578 | $354,204 | $455,597 | $364,248 | $112,742 |
Portfolio turnover | 163% | 227% | 142% | 129% | 118% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Year Ended July 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $25.06 | $24.36 | $26.70 | $22.67 | $18.24 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.08) | (0.02) | (0.02) | (0.06) | (0.01) |
Net realized and unrealized gain (loss) | 10.67 | 0.72 | (0.87) | 5.29 | 4.76 |
Total From Investment Operations | 10.59 | 0.70 | (0.89) | 5.23 | 4.75 |
Less Distributions: | |||||
Distributions from net realized gain | (0.14) | — | (1.45) | (1.20) | (0.32) |
Net Asset Value, End of Period | $35.51 | $25.06 | $24.36 | $26.70 | $22.67 |
Total Return2 | 42.38% | 2.87% | (2.60)% | 23.81% | 26.27% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.87% | 0.87% | 0.87% | 0.88% | 0.88% |
Net investment income (loss) | (0.24)% | (0.07)% | (0.07)% | (0.24)% | (0.04)% |
Expense waiver/reimbursement4 | 0.09% | 0.09% | 0.15% | 0.30% | 0.42% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $309,117 | $283,103 | $333,059 | $89,307 | $24,795 |
Portfolio turnover | 163% | 227% | 142% | 129% | 118% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
July 31, 2021
Assets: | |
Investment in securities, at value including $6,040,073 of securities loaned and $23,167,809 of investment in affiliated holdings and $37,703,004 of investment in affiliated companies* (identified cost $744,535,537) | $904,215,402 |
Cash | 180,244 |
Income receivable | 202,731 |
Income receivable from affiliated holdings | 570 |
Receivable for investments sold | 3,155,045 |
Receivable for shares sold | 554,320 |
Total Assets | 908,308,312 |
Liabilities: | |
Payable for investments purchased | 4,770,895 |
Payable for shares redeemed | 1,762,236 |
Payable for collateral due to broker for securities lending | 6,436,827 |
Payable for investment adviser fee (Note 5) | 35,786 |
Payable for administrative fee (Note 5) | 3,855 |
Payable for distribution services fee (Note 5) | 17,758 |
Payable for other service fees (Notes 2 and 5) | 73,767 |
Accrued expenses (Note 5) | 202,158 |
Total Liabilities | 13,303,282 |
Net assets for 25,574,905 shares outstanding | $895,005,030 |
Net Assets Consist of: | |
Paid-in capital | $544,298,463 |
Total distributable earnings (loss) | 350,706,567 |
Total Net Assets | $895,005,030 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($129,225,613 ÷ 3,827,883 shares outstanding), no par value, unlimited shares authorized | $33.76 |
Offering price per share (100/94.50 of $33.76) | $35.72 |
Redemption proceeds per share | $33.76 |
Class C Shares: | |
Net asset value per share ($28,084,479 ÷ 968,719 shares outstanding), no par value, unlimited shares authorized | $28.99 |
Offering price per share | $28.99 |
Redemption proceeds per share (99.00/100 of $28.99) | $28.70 |
Institutional Shares: | |
Net asset value per share ($428,577,768 ÷ 12,073,974 shares outstanding), no par value, unlimited shares authorized | $35.50 |
Offering price per share | $35.50 |
Redemption proceeds per share | $35.50 |
Class R6 Shares: | |
Net asset value per share ($309,117,170 ÷ 8,704,329 shares outstanding), no par value, unlimited shares authorized | $35.51 |
Offering price per share | $35.51 |
Redemption proceeds per share | $35.51 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31, 2021
Investment Income: | |
Dividends (including $204,108 received from affiliated companies and holdings* and net of foreign taxes withheld of $4,150) | $5,112,146 |
Net income on securities loaned (includes $36,331 received from affiliated holdings* related to cash collateral balances) (Note 2) | 214,499 |
TOTAL INCOME | 5,326,645 |
Expenses: | |
Investment adviser fee (Note 5) | 6,706,696 |
Administrative fee (Note 5) | 657,609 |
Custodian fees | 98,166 |
Transfer agent fees (Note 2) | 747,194 |
Directors’/Trustees’ fees (Note 5) | 5,321 |
Auditing fees | 27,800 |
Legal fees | 11,957 |
Portfolio accounting fees | 154,107 |
Distribution services fee (Note 5) | 168,597 |
Other service fees (Notes 2 and 5) | 340,903 |
Share registration costs | 74,380 |
Printing and postage | 78,933 |
Miscellaneous (Note 5) | 35,536 |
TOTAL EXPENSES | 9,107,199 |
Waiver and Reimbursements: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (731,804) |
Waiver/reimbursements of other operating expenses (Notes 2 and 5) | (469,595) |
TOTAL WAIVER AND REIMBURSEMENTS | (1,201,399) |
Net expenses | 7,905,800 |
Net investment loss | (2,579,155) |
Realized and Unrealized Gain (Loss) on Investments: | |
Net realized gain on investments (including net realized gain of $14,617,339 on sales of investments in affiliated companies and holdings*) | 237,616,876 |
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $(4,779,209) of investments in affiliated companies*) | 50,774,142 |
Net realized and unrealized gain (loss) on investments | 288,391,018 |
Change in net assets resulting from operations | $285,811,863 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31 | 2021 | 2020 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment loss | $(2,579,155) | $(996,224) |
Net realized gain (loss) | 237,616,876 | (33,014,524) |
Net change in unrealized appreciation/depreciation | 50,774,142 | 37,205,285 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 285,811,863 | 3,194,537 |
Distributions to Shareholders: | ||
Class A Shares | (548,250) | — |
Class C Shares | (104,815) | — |
Institutional Shares | (1,863,850) | — |
Class R6 Shares | (1,369,095) | — |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (3,886,010) | — |
Share Transactions: | ||
Proceeds from sale of shares | 235,454,733 | 260,125,039 |
Proceeds from shares issued in connection with the tax-free transfer of assets from PNC Multi-Factor Small Cap Growth Fund | — | 102,652,108 |
Net asset value of shares issued to shareholders in payment of distributions declared | 3,462,937 | — |
Cost of shares redeemed | (373,015,518) | (512,259,924) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (134,097,848) | (149,482,777) |
Change in net assets | 147,828,005 | (146,288,240) |
Net Assets: | ||
Beginning of period | 747,177,025 | 893,465,265 |
End of period | $895,005,030 | $747,177,025 |
Shares of the Fund Issued | Acquired Fund’s Net Assets Received | Unrealized Appreciation1 | Net Assets of the Fund Immediately Prior to Combination | Net Assets of the Fund Immediately After Combination |
4,360,352 | $102,652,108 | $20,727,223 | $897,256,665 | $999,908,773 |
1 | Unrealized Appreciation is included in the Net Assets Received amount shown above. |
Net investment income (loss) | $(964,618) |
Net realized and unrealized gain on investments | 3,068,318 |
Net increase in net assets resulting from operations | $2,103,700 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $216,321 | $(168,719) |
Class C Shares | 24,041 | (13,629) |
Institutional Shares | 428,705 | (287,247) |
Class R6 Shares | 78,127 | — |
TOTAL | $747,194 | $(469,595) |
Other Service Fees Incurred | |
Class A Shares | $287,092 |
Class C Shares | 53,811 |
TOTAL | $340,903 |
Market Value of Securities Loaned | Collateral Received |
$6,040,073 | $6,436,827 |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 998,380 | $30,777,217 | 609,482 | $13,104,153 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | — | — | 1,446,327 | 33,251,055 |
Shares issued to shareholders in payment of distributions declared | 14,857 | 426,682 | — | — |
Shares redeemed | (1,052,585) | (32,379,214) | (1,715,867) | (36,704,330) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | (39,348) | $(1,175,315) | 339,942 | $9,650,878 |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 443,130 | $12,346,176 | 126,433 | $2,399,164 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | — | — | 182,602 | 3,655,701 |
Shares issued to shareholders in payment of distributions declared | 4,048 | 100,360 | — | — |
Shares redeemed | (323,452) | (8,035,514) | (577,979) | (11,036,748) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | 123,726 | $4,411,022 | (268,944) | $(4,981,883) |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 3,584,938 | $119,334,739 | 7,454,551 | $168,193,983 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | — | — | 2,548,202 | 61,335,218 |
Shares issued to shareholders in payment of distributions declared | 56,977 | 1,717,850 | — | — |
Shares redeemed | (5,706,924) | (181,239,928) | (14,562,017) | (326,516,625) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (2,065,009) | $(60,187,339) | (4,559,264) | $(96,987,424) |
Year Ended 7/31/2021 | Year Ended 7/31/2020 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 2,252,100 | $72,996,601 | 3,418,303 | $76,427,739 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | — | — | 183,221 | 4,410,134 |
Shares issued to shareholders in payment of distributions declared | 40,386 | 1,218,045 | — | — |
Shares redeemed | (4,884,633) | (151,360,862) | (5,976,222) | (138,002,221) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | (2,592,147) | $(77,146,216) | (2,374,698) | $(57,164,348) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (4,572,778) | $(134,097,848) | (6,862,964) | $(149,482,777) |
Increase (Decrease) | |
Paid-In Capital | Total Distributable Earnings (Loss) |
$(134) | $134 |
2021 | 2020 | |
Long-term capital gains | $3,886,010 | $— |
Undistributed ordinary income1 | $132,977,030 |
Net unrealized appreciation | $153,769,646 |
Undistributed long-term capital gains | $63,959,891 |
1 | For tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings. |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Percentage of Average Daily Net Assets of Class | |
Class A Shares | 0.05% |
Class C Shares | 0.75% |
Distribution Services Fees Incurred | |
Class C Shares | $168,597 |
Purchases | $1,324,073,469 |
Sales | $1,466,926,852 |
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September 23, 2021
Beginning Account Value 2/1/2021 | Ending Account Value 7/31/2021 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,064.60 | $5.78 |
Class C Shares | $1,000 | $1,060.40 | $9.60 |
Institutional Shares | $1,000 | $1,065.70 | $4.51 |
Class R6 Shares | $1,000 | $1,065.70 | $4.46 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,019.19 | $5.66 |
Class C Shares | $1,000 | $1,015.47 | $9.39 |
Institutional Shares | $1,000 | $1,020.43 | $4.41 |
Class R6 Shares | $1,000 | $1,020.48 | $4.36 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.13% |
Class C Shares | 1.88% |
Institutional Shares | 0.88% |
Class R6 Shares | 0.87% |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2016 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company; President of some of the Funds in the Federated Hermes Fund Family and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; President and CEO of Passport Research, Ltd.; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Hermes, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. and President, Technology, Federated Services Company. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee, 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: Chairman of the Board of Directors, 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 Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Director, Member of the Audit Committee, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor 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.; and Director and Vice Chair, Our Campaign for the Church Alive!, Inc. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity and Director, The Golisano Children’s Museum of Naples, Florida. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
Madelyn A. Reilly Birth Date: February 2, 1956 Trustee Indefinite Term Began serving: November 2020 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Senior Vice President for Legal Affairs, General Counsel and Secretary of the Board of Trustees, 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 Director of Risk Management and Associate General Counsel, 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 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, 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 Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: June 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: June 2006 | Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, 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 F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: June 2012 | Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Annual Evaluation of Adequacy and Effectiveness
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/edelivery.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/fhilogok11p.jpg)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31421R767
CUSIP 31421R759
CUSIP 31421R619
![](https://capedge.com/proxy/N-CSR/0001623632-21-001144/fscbug_small.jpg)
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 – $149,400
Fiscal year ended 2020 - $146,200
(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, $2,808 and $11,145 respectively. Fiscal year ended 2021- Audit consent fee for N-14 merger document. Fiscal year ended 2020- Audit consent fee for N-14 merger document.
(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, $43,494 and $42,456 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 - $60,979
Fiscal year ended 2020 - $150,395
(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 MDT Series
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date September 23, 2021
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /S/ J. Christopher Donahue
J. Christopher Donahue, Principal Executive Officer
Date September 23, 2021
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date September 23, 2021