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: 07/31/23
Date of Reporting Period: 07/31/23
Item 1. | Reports to Stockholders |
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/imgf1e7c3681.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/0001623632-23-001324/donahuechrissigsmall.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/fmaccar37309.jpg)
1 Year | 5 Years | 10 Years | |
Class A Shares | 8.05% | 10.94% | 11.63% |
Class C Shares | 12.50% | 11.36% | 11.58% |
Institutional Shares | 14.69% | 12.53% | 12.59% |
Class R6 Shares4 | 14.73% | 12.54% | 12.34% |
R3000 | 12.65% | 11.45% | 12.14% |
MLBFA | 11.44% | 10.62% | 11.17% |
Sector Composition | Percentage of Total Net Assets |
Information Technology | 26.4% |
Health Care | 14.1% |
Financials | 14.0% |
Industrials | 10.2% |
Consumer Discretionary | 10.2% |
Consumer Staples | 6.9% |
Communication Services | 6.6% |
Energy | 3.5% |
Real Estate | 2.8% |
Materials | 1.7% |
Utilities | 1.3% |
Securities Lending Collateral2 | 0.7% |
Cash Equivalents3 | 2.0% |
Other Assets and Liabilities—Net4 | (0.4)% |
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 | 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— 97.7% | |||
Communication Services— 6.6% | |||
74,800 | 1 | Alphabet, Inc., Class A | $ 9,927,456 |
341,396 | 1 | Altice USA, Inc. | 1,157,332 |
145,023 | 1 | CarGurus, Inc. | 3,286,221 |
65,486 | 1 | Cars.com, Inc. | 1,493,736 |
15,554 | Comcast Corp., Class A | 703,974 | |
43,723 | 1 | Match Group, Inc. | 2,033,557 |
27,414 | 1 | Meta Platforms, Inc. | 8,734,100 |
2,453 | 1 | Netflix, Inc. | 1,076,793 |
4,646 | Omnicom Group, Inc. | 393,145 | |
86,184 | 1 | Spotify Technology SA | 12,876,752 |
TOTAL | 41,683,066 | ||
Consumer Discretionary— 10.2% | |||
43,085 | 1 | Airbnb, Inc. | 6,557,106 |
13,366 | 1 | Amazon.com, Inc. | 1,786,767 |
564 | 1 | AutoZone, Inc. | 1,399,690 |
55,165 | 1 | Bright Horizons Family Solutions, Inc. | 5,352,660 |
1,303 | 1 | Chipotle Mexican Grill, Inc. | 2,556,851 |
9,020 | 1 | DoorDash, Inc. | 818,926 |
8,683 | 1 | Duolingo, Inc. | 1,347,515 |
47,545 | eBay, Inc. | 2,116,228 | |
75,294 | 1 | Expedia Group, Inc. | 9,225,774 |
312,671 | Gap (The), Inc. | 3,220,511 | |
53,197 | 1 | Goodyear Tire & Rubber Co. | 855,408 |
9,766 | McDonald’s Corp. | 2,863,391 | |
2,844 | Murphy USA, Inc. | 873,193 | |
21,545 | Nike, Inc., Class B | 2,378,353 | |
1,607 | 1 | O’Reilly Automotive, Inc. | 1,487,745 |
85,372 | PVH Corp. | 7,652,746 | |
35,520 | 1 | Royal Caribbean Cruises, Ltd. | 3,875,587 |
17,618 | Starbucks Corp. | 1,789,460 | |
4,482 | 1 | Tesla, Inc. | 1,198,621 |
3,527 | Tractor Supply Co. | 790,013 | |
11,639 | 1 | Ulta Beauty, Inc. | 5,177,027 |
5,444 | Wingstop, Inc. | 917,749 | |
TOTAL | 64,241,321 | ||
Consumer Staples— 6.9% | |||
56,627 | Albertsons Cos., Inc. | 1,230,505 | |
28,345 | Archer-Daniels-Midland Co. | 2,408,191 | |
95,944 | 1 | Hain Celestial Group, Inc. | 1,215,611 |
39,414 | Hershey Foods Corp. | 9,116,852 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Consumer Staples— continued | |||
9,028 | Kellogg Co. | $ 603,883 | |
194,483 | Kroger Co. | 9,459,653 | |
55,859 | Lamb Weston Holdings, Inc. | 5,788,668 | |
63,716 | PepsiCo, Inc. | 11,944,201 | |
8,521 | WalMart, Inc. | 1,362,167 | |
TOTAL | 43,129,731 | ||
Energy— 3.5% | |||
9,156 | Cheniere Energy, Inc. | 1,481,990 | |
5,293 | ConocoPhillips | 623,092 | |
63,055 | Marathon Oil Corp. | 1,656,455 | |
97,200 | Marathon Petroleum Corp. | 12,929,544 | |
5,184 | ONEOK, Inc. | 347,535 | |
6,382 | Valero Energy Corp. | 822,704 | |
50,712 | 1 | Weatherford International PLC | 4,214,167 |
TOTAL | 22,075,487 | ||
Financials— 14.0% | |||
27,571 | American International Group, Inc. | 1,661,980 | |
23,133 | Ameriprise Financial, Inc. | 8,060,694 | |
113,908 | Bank of New York Mellon Corp. | 5,166,867 | |
9,573 | Cboe Global Markets, Inc. | 1,337,157 | |
5,607 | Chubb Ltd. | 1,146,127 | |
12,954 | 1,2 | Coinbase Global, Inc. | 1,277,394 |
47,662 | 1 | Green Dot Corp. | 931,792 |
11,137 | Hartford Financial Services Group, Inc. | 800,528 | |
46,999 | Interactive Brokers Group, Inc., Class A | 4,104,423 | |
10,660 | Jackson Financial, Inc. | 351,993 | |
15,590 | JPMorgan Chase & Co. | 2,462,596 | |
5,561 | MarketAxess Holdings, Inc. | 1,497,132 | |
8,306 | Marsh & McLennan Cos., Inc. | 1,565,016 | |
14,063 | Mastercard, Inc. | 5,544,760 | |
2,279 | MSCI, Inc., Class A | 1,249,074 | |
23,744 | NASDAQ, Inc. | 1,198,835 | |
38,160 | Northern Trust Corp. | 3,057,379 | |
101,766 | 1 | PayPal Holdings, Inc. | 7,715,898 |
31,747 | 1 | PROG Holdings, Inc. | 1,288,293 |
46,258 | Progressive Corp., OH | 5,827,583 | |
31,946 | Prudential Financial, Inc. | 3,082,470 | |
42,541 | State Street Corp. | 3,081,670 | |
36,599 | The Travelers Cos., Inc. | 6,317,353 | |
51,304 | Virtu Financial, Inc. | 952,202 | |
74,215 | Visa, Inc., Class A | 17,643,132 | |
66,109 | Western Union Co. | 805,208 | |
TOTAL | 88,127,556 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Health Care— 14.1% | |||
25,187 | AbbVie, Inc. | $ 3,767,472 | |
27,639 | 1,2 | AnaptysBio, Inc. | 544,765 |
5,262 | 1 | Biogen, Inc. | 1,421,740 |
27,104 | Bristol-Myers Squibb Co. | 1,685,598 | |
90,932 | 1 | Centene Corp. | 6,191,560 |
11,543 | CVS Health Corp. | 862,147 | |
31,522 | Dentsply Sirona, Inc. | 1,308,793 | |
243,370 | 1 | Elanco Animal Health, Inc. | 2,937,476 |
7,547 | Elevance Health, Inc. | 3,559,392 | |
20,260 | Eli Lilly & Co. | 9,209,183 | |
25,086 | 1 | GE HealthCare Technologies, Inc. | 1,956,708 |
100,560 | Gilead Sciences, Inc. | 7,656,638 | |
14,193 | Humana, Inc. | 6,483,788 | |
72,646 | Johnson & Johnson | 12,170,384 | |
6,451 | McKesson Corp. | 2,595,882 | |
55,699 | Merck & Co., Inc. | 5,940,298 | |
1,866 | 1 | Molina Healthcare, Inc. | 568,178 |
37,635 | 1 | Myriad Genetics, Inc. | 841,142 |
34,504 | 1 | Nevro Corp. | 862,255 |
46,897 | 1 | Omnicell, Inc. | 2,961,546 |
29,046 | Pfizer, Inc. | 1,047,399 | |
216,797 | 1 | Teladoc Health, Inc. | 6,454,047 |
6,814 | Teleflex, Inc. | 1,711,472 | |
4,670 | The Cigna Group | 1,378,117 | |
2,274 | 1 | United Therapeutics Corp. | 551,945 |
1,276 | UnitedHealth Group, Inc. | 646,128 | |
8,264 | 1 | Vertex Pharmaceuticals, Inc. | 2,911,738 |
TOTAL | 88,225,791 | ||
Industrials— 10.2% | |||
37,702 | 3M Co. | 4,203,773 | |
9,652 | AGCO Corp. | 1,284,681 | |
3,602 | Allegion PLC | 420,930 | |
36,675 | Allison Transmission Holdings, Inc. | 2,152,456 | |
31,041 | Booz Allen Hamilton Holding Corp. | 3,758,444 | |
17,307 | Caterpillar, Inc. | 4,589,297 | |
15,491 | 1 | Ceridian HCM Holding, Inc. | 1,096,918 |
4,423 | Emerson Electric Co. | 404,041 | |
5,425 | Lennox International, Inc. | 1,993,362 | |
14,625 | Manpower, Inc. | 1,153,620 | |
28,990 | 1 | Openlane, Inc. | 455,143 |
41,959 | Paychex, Inc. | 5,264,596 | |
39,303 | Pentair PLC | 2,731,559 | |
10,457 | Robert Half, Inc. | 775,387 | |
5,292 | 2 | Rockwell Automation, Inc. | 1,779,647 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Industrials— continued | |||
9,688 | Ryder System, Inc. | $ 989,629 | |
19,159 | 1 | SkyWest, Inc. | 842,804 |
9,872 | 1 | SPX Technologies, Inc. | 835,270 |
4,949 | Stanley Black & Decker, Inc. | 491,287 | |
18,318 | Trane Technologies PLC | 3,653,342 | |
8,632 | 1 | Trex Co., Inc. | 596,816 |
36,437 | 1 | Uber Technologies, Inc. | 1,802,174 |
95,610 | 1 | United Airlines Holdings, Inc. | 5,192,579 |
4,008 | 1 | United Rentals, Inc. | 1,862,437 |
13,258 | Verisk Analytics, Inc. | 3,035,287 | |
10,956 | Waste Management, Inc. | 1,794,483 | |
70,133 | XPO, Inc. | 4,856,009 | |
55,452 | Xylem, Inc. | 6,252,213 | |
TOTAL | 64,268,184 | ||
Information Technology— 26.4% | |||
5,201 | Accenture PLC | 1,645,336 | |
8,892 | 1 | Adobe, Inc. | 4,856,544 |
148,158 | Apple, Inc. | 29,105,639 | |
20,390 | 1 | Arista Networks, Inc. | 3,162,285 |
14,602 | Broadcom, Inc. | 13,122,087 | |
26,942 | 1 | Cadence Design Systems, Inc. | 6,304,697 |
21,864 | 1 | Cirrus Logic, Inc. | 1,766,611 |
132,676 | Cisco Systems, Inc. | 6,904,459 | |
9,243 | 1 | Commvault Systems, Inc. | 720,307 |
107,836 | Dell Technologies, Inc. | 5,706,681 | |
81,019 | 1 | DXC Technology Co. | 2,240,175 |
6,106 | 1 | F5, Inc. | 966,214 |
121,757 | 1 | Fortinet, Inc. | 9,462,954 |
5,022 | 1 | HubSpot, Inc. | 2,915,522 |
12,624 | Microchip Technology, Inc. | 1,185,899 | |
78,984 | Microsoft Corp. | 26,532,305 | |
2,174 | Motorola Solutions, Inc. | 623,134 | |
58,613 | 1 | Nutanix, Inc. | 1,770,113 |
17,895 | NVIDIA Corp. | 8,362,155 | |
40,118 | 1 | Palo Alto Networks, Inc. | 10,027,895 |
93,083 | Pegasystems, Inc. | 4,910,128 | |
102,219 | 1 | Pure Storage, Inc. | 3,781,081 |
6,426 | 1 | Qorvo, Inc. | 706,989 |
17,935 | 1 | Salesforce, Inc. | 4,035,554 |
28,046 | 1 | Semtech Corp. | 818,943 |
2,248 | 1 | ServiceNow, Inc. | 1,310,584 |
31,542 | Skyworks Solutions, Inc. | 3,607,459 | |
4,694 | 1 | Synaptics, Inc. | 423,915 |
2,537 | 1 | Synopsys, Inc. | 1,146,217 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Information Technology— continued | |||
5,716 | 1 | Workday, Inc. | $ 1,355,435 |
79,312 | 1 | Zoom Video Communications, Inc. | 5,817,535 |
TOTAL | 165,294,852 | ||
Materials— 1.7% | |||
1,989 | Linde PLC | 777,043 | |
9,202 | Mosaic Co./The | 375,073 | |
119,921 | Newmont Corp. | 5,147,009 | |
9,713 | Nucor Corp. | 1,671,510 | |
15,653 | Steel Dynamics, Inc. | 1,668,297 | |
28,058 | United States Steel Corp. | 715,479 | |
TOTAL | 10,354,411 | ||
Real Estate— 2.8% | |||
21,670 | Crown Castle, Inc. | 2,346,644 | |
246,836 | Kilroy Realty Corp. | 8,812,045 | |
76,810 | Macerich Co. (The) | 979,328 | |
7,229 | Public Storage | 2,036,771 | |
7,971 | SBA Communications Corp. | 1,745,250 | |
42,302 | 2 | SL Green Realty Corp. | 1,595,208 |
TOTAL | 17,515,246 | ||
Utilities— 1.3% | |||
34,694 | Consolidated Edison Co. | 3,291,073 | |
39,097 | Exelon Corp. | 1,636,600 | |
38,710 | WEC Energy Group, Inc. | 3,478,481 | |
TOTAL | 8,406,154 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $513,832,673) | 613,321,799 | ||
INVESTMENT COMPANIES— 2.7% | |||
3,971,612 | Federated Hermes Government Obligations Fund, Premier Shares, 5.16%3 | 3,971,612 | |
12,748,795 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 5.32%3 | 12,747,520 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $16,717,984) | 16,719,132 | ||
TOTAL INVESTMENT IN SECURITIES—100.4% (IDENTIFIED COST $530,550,657)4 | 630,040,931 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.4)%5 | (2,696,902) | ||
TOTAL NET ASSETS—100% | $627,344,029 |
Affiliated | Value as of 7/31/2022 | Purchases at Cost* | Proceeds from Sales* |
Health Care: | |||
AnaptysBio, Inc.** | $726,639 | $— | $(173,056) |
TOTAL OF AFFILIATED COMPANIES TRANSACTIONS | $726,639 | $— | $(173,056) |
Change in Unrealized Appreciation/ (Depreciation)* | Net Realized Gain/ (Loss)* | Value as of 7/31/2023 | Shares Held as of 7/31/2023 | Dividend Income* |
$(41,462) | $32,644 | $544,765 | 27,639 | $— |
$(41,462) | $32,644 | $544,765 | 27,639 | $— |
* | A portion of the amount shown may have been recorded when the Fund no longer had ownership of at least 5% of the voting shares. |
** | At July 31, 2023, 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 7/31/2022 | $1,540,198 | $8,858,235 | $10,398,433 |
Purchases at Cost | $67,727,134 | $166,882,994 | $234,610,128 |
Proceeds from Sales | $(65,295,720) | $(162,996,416) | $(228,292,136) |
Change in Unrealized Appreciation/ Depreciation | $— | $850 | $850 |
Net Realized Gain/(Loss) | $— | $1,857 | $1,857 |
Value as of 7/31/2023 | $3,971,612 | $12,747,520 | $16,719,132 |
Shares Held as of 7/31/2023 | 3,971,612 | 12,748,795 | 16,720,407 |
Dividend Income | $61,616 | $462,158 | $523,774 |
* | 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 | 7-day net yield. |
4 | The cost of investments for federal tax purposes amounts to $533,582,555. |
5 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $34.32 | $42.75 | $31.77 | $29.90 | $30.01 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.19 | 0.08 | 0.08 | 0.13 | 0.16 |
Net realized and unrealized gain (loss) | 4.26 | (1.60) | 11.90 | 2.69 | 1.81 |
Total From Investment Operations | 4.45 | (1.52) | 11.98 | 2.82 | 1.97 |
Less Distributions: | |||||
Distributions from net investment income | (0.12) | (0.04) | (0.12) | (0.11) | (0.07) |
Distributions from net realized gain | (3.19) | (6.87) | (0.88) | (0.84) | (2.01) |
Total Distributions | (3.31) | (6.91) | (1.00) | (0.95) | (2.08) |
Net Asset Value, End of Period | $35.46 | $34.32 | $42.75 | $31.77 | $29.90 |
Total Return2 | 14.35% | (4.95)% | 38.40% | 9.66% | 7.80% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.04% | 1.04% | 1.04% | 1.04% | 1.08% |
Net investment income | 0.57% | 0.22% | 0.23% | 0.44% | 0.57% |
Expense waiver/reimbursement4 | 0.16% | 0.16% | 0.17% | 0.20% | 0.24% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $138,388 | $105,590 | $109,747 | $79,301 | $69,221 |
Portfolio turnover5 | 130% | 133% | 63% | 160% | 87% |
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 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $31.06 | $39.55 | $29.57 | $27.99 | $28.37 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.06) | (0.19) | (0.18) | (0.08) | (0.05) |
Net realized and unrealized gain (loss) | 3.82 | (1.43) | 11.04 | 2.50 | 1.68 |
Total From Investment Operations | 3.76 | (1.62) | 10.86 | 2.42 | 1.63 |
Less Distributions: | |||||
Distributions from net realized gain | (3.19) | (6.87) | (0.88) | (0.84) | (2.01) |
Net Asset Value, End of Period | $31.63 | $31.06 | $39.55 | $29.57 | $27.99 |
Total Return2 | 13.50% | (5.67)% | 37.37% | 8.86% | 6.96% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.81% | 1.81% | 1.79% | 1.79% | 1.85% |
Net investment income (loss) | (0.20)% | (0.55)% | (0.52)% | (0.31)% | (0.20)% |
Expense waiver/reimbursement4 | 0.14% | 0.14% | 0.16% | 0.21% | 0.24% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $35,028 | $33,256 | $38,028 | $31,030 | $32,178 |
Portfolio turnover5 | 130% | 133% | 63% | 160% | 87% |
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 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $34.96 | $43.40 | $32.22 | $30.29 | $30.37 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.29 | 0.20 | 0.19 | 0.22 | 0.25 |
Net realized and unrealized gain (loss) | 4.35 | (1.63) | 12.08 | 2.74 | 1.81 |
Total From Investment Operations | 4.64 | (1.43) | 12.27 | 2.96 | 2.06 |
Less Distributions: | |||||
Distributions from net investment income | (0.21) | (0.14) | (0.21) | (0.19) | (0.13) |
Distributions from net realized gain | (3.19) | (6.87) | (0.88) | (0.84) | (2.01) |
Total Distributions | (3.40) | (7.01) | (1.09) | (1.03) | (2.14) |
Net Asset Value, End of Period | $36.20 | $34.96 | $43.40 | $32.22 | $30.29 |
Total Return2 | 14.69% | (4.67)% | 38.83% | 10.01% | 8.08% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.74% | 0.74% | 0.74% | 0.74% | 0.78% |
Net investment income | 0.86% | 0.52% | 0.52% | 0.73% | 0.87% |
Expense waiver/reimbursement4 | 0.21% | 0.20% | 0.21% | 0.25% | 0.29% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $413,248 | $291,517 | $283,822 | $243,490 | $215,799 |
Portfolio turnover5 | 130% | 133% | 63% | 160% | 87% |
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 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $34.16 | $42.56 | $31.62 | $29.75 | $29.89 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.28 | 0.20 | 0.20 | 0.21 | 0.23 |
Net realized and unrealized gain (loss) | 4.26 | (1.59) | 11.84 | 2.69 | 1.79 |
Total From Investment Operations | 4.54 | (1.39) | 12.04 | 2.90 | 2.02 |
Less Distributions: | |||||
Distributions from net investment income | (0.22) | (0.14) | (0.22) | (0.19) | (0.15) |
Distributions from net realized gain | (3.19) | (6.87) | (0.88) | (0.84) | (2.01) |
Total Distributions | (3.41) | (7.01) | (1.10) | (1.03) | (2.16) |
Net Asset Value, End of Period | $35.29 | $34.16 | $42.56 | $31.62 | $29.75 |
Total Return2 | 14.73% | (4.66)% | 38.84% | 10.00% | 8.08% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.73% | 0.73% | 0.73% | 0.73% | 0.81% |
Net investment income | 0.84% | 0.53% | 0.54% | 0.75% | 0.78% |
Expense waiver/reimbursement4 | 0.14% | 0.13% | 0.15% | 0.17% | 0.18% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $40,680 | $16,717 | $11,513 | $8,571 | $9,183 |
Portfolio turnover5 | 130% | 133% | 63% | 160% | 87% |
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 | Securities that mature are considered sales for purposes of this calculation. |
July 31, 2023
Assets: | |
Investment in securities, at value including $3,974,270 of securities loaned and $17,263,897 of investments in affiliated holdings* (identified cost $530,550,657, including $17,229,184 of identified cost in affiliated holdings) | $630,040,931 |
Income receivable | 217,870 |
Income receivable from affiliated holdings | 62,123 |
Receivable for investments sold | 4,644,712 |
Receivable for shares sold | 1,593,929 |
Total Assets | 636,559,565 |
Liabilities: | |
Payable for investments purchased | 4,648,572 |
Payable for shares redeemed | 344,200 |
Payable to bank | 20,281 |
Payable for collateral due to broker for securities lending (Note 2) | 3,971,612 |
Payable for investment adviser fee (Note 5) | 9,593 |
Payable for administrative fee (Note 5) | 1,334 |
Payable for Directors’/Trustees’ fees (Note 5) | 100 |
Payable for distribution services fee (Note 5) | 21,450 |
Payable for other service fees (Notes 2 and 5) | 53,958 |
Accrued expenses (Note 5) | 144,436 |
Total Liabilities | 9,215,536 |
Net assets for 17,577,073 shares outstanding | $627,344,029 |
Net Assets Consist of: | |
Paid-in capital | $523,931,412 |
Total distributable earnings (loss) | 103,412,617 |
Total Net Assets | $627,344,029 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($138,387,713 ÷ 3,902,689 shares outstanding), no par value, unlimited shares authorized | $35.46 |
Offering price per share (100/94.50 of $35.46) | $37.52 |
Redemption proceeds per share | $35.46 |
Class C Shares: | |
Net asset value per share ($35,028,365 ÷ 1,107,503 shares outstanding), no par value, unlimited shares authorized | $31.63 |
Offering price per share | $31.63 |
Redemption proceeds per share (99.00/100 of $31.63) | $31.31 |
Institutional Shares: | |
Net asset value per share ($413,247,559 ÷ 11,414,133 shares outstanding), no par value, unlimited shares authorized | $36.20 |
Offering price per share | $36.20 |
Redemption proceeds per share | $36.20 |
Class R6 Shares: | |
Net asset value per share ($40,680,392 ÷ 1,152,748 shares outstanding), no par value, unlimited shares authorized | $35.29 |
Offering price per share | $35.29 |
Redemption proceeds per share | $35.29 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31, 2023
Investment Income: | |
Dividends (including $462,158 received from affiliated holdings*) | $7,889,707 |
Net income on securities loaned (includes $61,616 earned from affiliated holdings related to cash collateral balances*) (Note 2) | 23,527 |
TOTAL INCOME | 7,913,234 |
Expenses: | |
Investment adviser fee (Note 5) | 3,452,056 |
Administrative fee (Note 5) | 387,583 |
Custodian fees | 48,581 |
Transfer agent fees (Note 2) | 440,391 |
Directors’/Trustees’ fees (Note 5) | 3,841 |
Auditing fees | 29,501 |
Legal fees | 11,666 |
Portfolio accounting fees | 131,615 |
Distribution services fee (Note 5) | 228,046 |
Other service fees (Notes 2 and 5) | 366,525 |
Share registration costs | 101,261 |
Printing and postage | 37,380 |
Miscellaneous (Note 5) | 31,389 |
TOTAL EXPENSES | 5,269,835 |
Waiver and Reimbursements: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (696,557) |
Reimbursement of other operating expenses (Notes 2 and 5) | (229,899) |
TOTAL WAIVER AND REIMBURSEMENTS | (926,456) |
Net expenses | 4,343,379 |
Net investment income | 3,569,855 |
Realized and Unrealized Gain (Loss) on Investments: | |
Net realized gain on investments (including net realized gain of $34,501 on sales of investments in affiliated holdings*) | 9,610,946 |
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $(40,612) on investments in affiliated holdings*) | 59,153,515 |
Net realized and unrealized gain (loss) on investments | 68,764,461 |
Change in net assets resulting from operations | $72,334,316 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31 | 2023 | 2022 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $3,569,855 | $1,684,679 |
Net realized gain (loss) | 9,610,946 | 53,222,593 |
Net change in unrealized appreciation/depreciation | 59,153,515 | (78,884,076) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 72,334,316 | (23,976,804) |
Distributions to Shareholders: | ||
Class A Shares | (10,876,001) | (18,050,522) |
Class C Shares | (2,939,123) | (6,734,957) |
Institutional Shares | (27,856,268) | (48,461,721) |
Class R6 Shares | (1,883,465) | (2,859,720) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (43,554,857) | (76,106,920) |
Share Transactions: | ||
Proceeds from sale of shares | 288,930,323 | 160,200,101 |
Net asset value of shares issued to shareholders in payment of distributions declared | 40,448,117 | 70,184,727 |
Cost of shares redeemed | (177,893,339) | (126,331,790) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 151,485,101 | 104,053,038 |
Change in net assets | 180,264,560 | 3,969,314 |
Net Assets: | ||
Beginning of period | 447,079,469 | 443,110,155 |
End of period | $627,344,029 | $447,079,469 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $111,345 | $(21,373) |
Class C Shares | 28,230 | (273) |
Institutional Shares | 296,720 | (208,253) |
Class R6 Shares | 4,096 | — |
TOTAL | $440,391 | $(229,899) |
Other Service Fees Incurred | |
Class A Shares | $290,510 |
Class C Shares | 76,015 |
TOTAL | $366,525 |
Fair Value of Securities Loaned | Collateral Received |
$3,974,270 | $3,971,612 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,343,037 | $43,579,194 | 612,974 | $23,328,431 |
Shares issued to shareholders in payment of distributions declared | 308,624 | 9,607,187 | 454,940 | 17,088,464 |
Shares redeemed | (825,942) | (26,971,340) | (558,368) | (20,790,823) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 825,719 | $26,215,041 | 509,546 | $19,626,072 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 376,353 | $11,085,689 | 267,652 | $9,556,354 |
Shares issued to shareholders in payment of distributions declared | 99,258 | 2,761,357 | 188,752 | 6,442,116 |
Shares redeemed | (438,795) | (12,893,326) | (347,147) | (11,592,509) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | 36,816 | $953,720 | 109,257 | $4,405,961 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 6,021,803 | $201,878,159 | 2,935,348 | $114,520,154 |
Shares issued to shareholders in payment of distributions declared | 836,543 | 26,592,484 | 1,163,096 | 44,573,724 |
Shares redeemed | (3,782,618) | (126,125,074) | (2,299,780) | (88,189,501) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 3,075,728 | $102,345,569 | 1,798,664 | $70,904,377 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 979,784 | $32,387,281 | 320,616 | $12,795,162 |
Shares issued to shareholders in payment of distributions declared | 47,982 | 1,487,089 | 55,550 | 2,080,423 |
Shares redeemed | (364,328) | (11,903,599) | (157,356) | (5,758,957) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | 663,438 | $21,970,771 | 218,810 | $9,116,628 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 4,601,701 | $151,485,101 | 2,636,277 | $104,053,038 |
Increase (Decrease) | |
Paid-In Capital | Total Distributable Earnings (Loss) |
$(10,766) | $10,766 |
2023 | 2022 | |
Ordinary income1 | $2,533,761 | $40,467,734 |
Long-term capital gains | $41,021,096 | $35,639,186 |
1 | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Undistributed ordinary income | $2,079,485 |
Net unrealized appreciation | $96,458,376 |
Undistributed long-term capital gains | $4,874,756 |
TOTAL | $103,412,617 |
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 | $228,046 |
Purchases | $739,833,804 |
Sales | $632,811,005 |
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/ernstyoungsig.jpg)
September 25, 2023
Beginning Account Value 2/1/2023 | Ending Account Value 7/31/2023 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,066.80 | $5.33 |
Class C Shares | $1,000 | $1,062.80 | $9.26 |
Institutional Shares | $1,000 | $1,068.20 | $3.79 |
Class R6 Shares | $1,000 | $1,068.10 | $3.74 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,019.64 | $5.21 |
Class C Shares | $1,000 | $1,015.82 | $9.05 |
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 | 1.81% |
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; Director and 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, and Federated MDTA LLC; Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and CEO of Passport Research, Ltd.; Director 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: 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.; Lead Director, Member of the Audit and Nominating and Corporate Governance Committees, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 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 (natural gas). 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 Associate General Secretary of the Diocese of Pittsburgh, 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 (natural gas). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint Francis University. |
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. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber); and Director, The Golisano Children’s Museum of Naples, Florida. |
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; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors, Duquesne University (Retired). Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors and 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. Ms. Reilly currently serves as a member of the Board of Directors of UPMC Mercy 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 |
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; 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). |
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. |
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. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
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/0001623632-23-001324/edelivery.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/fhilogok11p.jpg)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31421R205
CUSIP 31421R304
CUSIP 31421R718
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/fscbug_small.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/img935a65f81.gif)
Share Class | Ticker | A | QABGX | C | QCBGX | Institutional | QIBGX | R6 | QKBGX |
Federated Hermes MDT Balanced Fund
A Portfolio of Federated Hermes MDT Series
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/donahuechrissigsmall.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/fmbalar37326.jpg)
1 Year | 5 Years | 10 Years | |
Class A Shares | 0.43% | 5.74% | 6.77% |
Class C Shares | 4.46% | 6.14% | 6.73% |
Institutional Shares | 6.57% | 7.22% | 7.64% |
Class R6 Shares5 | 6.59% | 7.22% | 7.48% |
S&P 500 | 13.02% | 12.20% | 12.66% |
BAB | -3.37% | 0.75% | 1.50% |
Blended Index | 6.43% | 7.87% | 8.33% |
MA | 5.57% | 5.73% | 6.33% |
Portfolio Composition | Percentage of Total Net Assets |
Domestic Equity Securities | 53.1% |
Corporate Debt Securities | 11.9% |
Mortgage Backed Securities | 10.1% |
International Equity Securities (including International Exchange-Traded Funds) | 9.4% |
U.S. Treasury Securities2 | 5.5% |
Asset-Backed Securities | 2.8% |
Project and Trade Finance Core Fund | 2.2% |
Collateralized Mortgage Obligations | 1.0% |
High Yield Bond Core Fund | 1.0% |
Emerging Markets Core Fund | 0.9% |
Commercial Mortgage-Backed Securities | 0.5% |
Government Agency | 0.1% |
Municipal Bond3 | 0.0% |
Bank Loan Core Fund3 | 0.0% |
Securities Lending Collateral4 | 0.2% |
Cash Equivalents5 | 1.6% |
Derivative Contracts6 | (0.1)% |
Other Assets and Liabilities—Net7 | (0.2)% |
TOTAL | 100% |
Sector Composition | Percentage of Equity Securities |
Information Technology | 25.7% |
Health Care | 13.6% |
Financials | 13.5% |
Consumer Discretionary | 11.1% |
Industrials | 10.5% |
Consumer Staples | 6.6% |
Communication Services | 6.5% |
Real Estate | 5.7% |
Energy | 3.5% |
Materials | 2.1% |
Utilities | 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 greater than 10% of its net assets are not treated as a single portfolio security, but rather the Fund is treated as owning a pro rata portion of each security and each other asset and liability owned by the affiliated investment company. Accordingly, the percentages of total net assets shown in the table will differ from those presented on the Portfolio of Investments. Affiliated investment companies (other than an affiliated money market mutual fund) in which the Fund invested less than 10% of its net assets are listed individually in the table. |
2 | Includes U.S. Treasuries pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding long 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 securities lending collateral. |
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— 54.2% | |||
Communication Services— 3.5% | |||
6,351 | 1 | Alphabet, Inc., Class A | $ 842,905 |
83,798 | 1 | Altice USA, Inc. | �� 284,075 |
19,336 | 1 | CarGurus, Inc. | 438,154 |
21,112 | 1 | Cars.com, Inc. | 481,565 |
223 | 1 | Charter Communications, Inc. | 90,357 |
2,819 | Comcast Corp., Class A | 127,588 | |
986 | Electronic Arts, Inc. | 134,441 | |
2,733 | 1 | Match Group, Inc. | 127,112 |
4,941 | 1 | Meta Platforms, Inc. | 1,574,203 |
957 | 1 | Netflix, Inc. | 420,094 |
13,884 | 1 | Spotify Technology SA | 2,074,408 |
4,875 | 1 | Trade Desk, Inc./The | 444,892 |
TOTAL | 7,039,794 | ||
Consumer Discretionary— 6.0% | |||
6,846 | 1 | Airbnb, Inc. | 1,041,893 |
2,290 | 1 | Amazon.com, Inc. | 306,127 |
171 | 1 | AutoZone, Inc. | 424,374 |
9,742 | 1 | Bright Horizons Family Solutions, Inc. | 945,266 |
230 | 1 | Chipotle Mexican Grill, Inc. | 451,324 |
1,520 | 1 | DoorDash, Inc. | 138,001 |
5,475 | eBay, Inc. | 243,692 | |
15,111 | 1 | Expedia Group, Inc. | 1,851,551 |
22,641 | Ford Motor Co. | 299,088 | |
52,227 | Gap (The), Inc. | 537,938 | |
2,617 | Genuine Parts Co. | 407,519 | |
15,297 | 1 | Goodyear Tire & Rubber Co. | 245,976 |
644 | Murphy USA, Inc. | 197,727 | |
2,354 | Nike, Inc., Class B | 259,858 | |
344 | 1 | O’Reilly Automotive, Inc. | 318,472 |
14,295 | PVH Corp. | 1,281,404 | |
7,061 | 1 | Royal Caribbean Cruises, Ltd. | 770,426 |
6,316 | Starbucks Corp. | 641,516 | |
651 | 1 | Tesla, Inc. | 174,097 |
1,489 | 1 | Ulta Beauty, Inc. | 662,307 |
12,680 | 1 | Under Armour, Inc., Class A | 102,201 |
904 | 1 | Wayfair, Inc. | 70,394 |
878 | Wingstop, Inc. | 148,013 | |
3,356 | Yum! Brands, Inc. | 462,021 | |
TOTAL | 11,981,185 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Consumer Staples— 3.6% | |||
11,638 | Albertsons Cos., Inc. | $ 252,894 | |
3,155 | Archer-Daniels-Midland Co. | 268,049 | |
271 | Coca-Cola Bottling Co. | 171,654 | |
228 | Costco Wholesale Corp. | 127,833 | |
20,502 | 1 | Hain Celestial Group, Inc. | 259,760 |
6,634 | Hershey Foods Corp. | 1,534,511 | |
36,347 | Kroger Co. | 1,767,918 | |
4,407 | Lamb Weston Holdings, Inc. | 456,697 | |
10,886 | PepsiCo, Inc. | 2,040,690 | |
925 | Procter & Gamble Co. | 144,577 | |
743 | WalMart, Inc. | 118,776 | |
TOTAL | 7,143,359 | ||
Energy— 1.9% | |||
1,395 | Cheniere Energy, Inc. | 225,795 | |
21,158 | Marathon Oil Corp. | 555,821 | |
16,604 | Marathon Petroleum Corp. | 2,208,664 | |
1,849 | Valero Energy Corp. | 238,354 | |
7,194 | 1 | Weatherford International PLC | 597,821 |
TOTAL | 3,826,455 | ||
Financials— 7.3% | |||
3,362 | Ameriprise Financial, Inc. | 1,171,489 | |
22,746 | Bank of New York Mellon Corp. | 1,031,759 | |
1,512 | Cboe Global Markets, Inc. | 211,196 | |
776 | Chubb Ltd. | 158,622 | |
2,452 | 1,2 | Coinbase Global, Inc. | 241,792 |
9,581 | 1 | Green Dot Corp. | 187,309 |
15,952 | Huntington Bancshares, Inc. | 195,252 | |
9,784 | Interactive Brokers Group, Inc., Class A | 854,437 | |
2,882 | Jackson Financial, Inc. | 95,164 | |
2,035 | JPMorgan Chase & Co. | 321,449 | |
904 | Marketaxess Holdings, Inc. | 243,375 | |
1,091 | Marsh & McLennan Cos., Inc. | 205,566 | |
3,301 | Mastercard, Inc. | 1,301,518 | |
367 | MSCI, Inc., Class A | 201,145 | |
5,615 | NASDAQ, Inc. | 283,501 | |
8,990 | Northern Trust Corp. | 720,279 | |
11,049 | 1 | PayPal Holdings, Inc. | 837,735 |
6,767 | Progressive Corp., OH | 852,507 | |
6,244 | Prudential Financial, Inc. | 602,484 | |
3,660 | State Street Corp. | 265,130 | |
7,648 | The Travelers Cos., Inc. | 1,320,121 | |
12,645 | Virtu Financial, Inc. | 234,691 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Financials— continued | |||
11,425 | Visa, Inc., Class A | $ 2,716,065 | |
31,056 | Western Union Co. | 378,262 | |
TOTAL | 14,630,848 | ||
Health Care— 7.3% | |||
3,796 | AbbVie, Inc. | 567,806 | |
7,913 | 1 | AnaptysBio, Inc. | 155,965 |
3,666 | Baxter International, Inc. | 165,813 | |
1,145 | 1 | Biogen, Inc. | 309,368 |
4,372 | Bristol-Myers Squibb Co. | 271,895 | |
15,959 | 1 | Centene Corp. | 1,086,648 |
15,524 | 1 | Community Health Systems, Inc. | 68,150 |
4,235 | CVS Health Corp. | 316,312 | |
2,423 | Dentsply Sirona, Inc. | 100,603 | |
51,357 | 1 | Elanco Animal Health, Inc. | 619,879 |
719 | Elevance Health, Inc. | 339,102 | |
3,353 | Eli Lilly & Co. | 1,524,106 | |
4,291 | 1 | GE HealthCare Technologies, Inc. | 334,698 |
16,311 | Gilead Sciences, Inc. | 1,241,920 | |
2,999 | Humana, Inc. | 1,370,033 | |
3,044 | 1 | Incyte Genomics, Inc. | 193,964 |
11,608 | Johnson & Johnson | 1,944,688 | |
918 | McKesson Corp. | 369,403 | |
8,738 | Merck & Co., Inc. | 931,908 | |
407 | 1 | Molina Healthcare, Inc. | 123,927 |
6,587 | 1 | Myriad Genetics, Inc. | 147,220 |
6,280 | 1 | Nevro Corp. | 156,937 |
8,669 | 1 | Omnicell, Inc. | 547,447 |
1,966 | Pfizer, Inc. | 70,894 | |
28,291 | 1 | Teladoc Health, Inc. | 842,223 |
724 | Teleflex, Inc. | 181,847 | |
596 | The Cigna Group | 175,880 | |
412 | UnitedHealth Group, Inc. | 208,625 | |
807 | 1 | Vertex Pharmaceuticals, Inc. | 284,338 |
TOTAL | 14,651,599 | ||
Industrials— 5.7% | |||
6,053 | 3M Co. | 674,910 | |
1,710 | AGCO Corp. | 227,601 | |
1,571 | Allegion PLC | 183,587 | |
3,700 | Allison Transmission Holdings, Inc. | 217,153 | |
5,504 | Booz Allen Hamilton Holding Corp. | 666,424 | |
2,242 | Caterpillar, Inc. | 594,511 | |
602 | Honeywell International, Inc. | 116,866 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Industrials— continued | |||
2,095 | Lennox International, Inc. | $ 769,787 | |
343 | Lockheed Martin Corp. | 153,105 | |
1,342 | Manpower, Inc. | 105,857 | |
1,946 | Otis Worldwide Corp. | 177,008 | |
9,954 | Paychex, Inc. | 1,248,928 | |
5,915 | Pentair PLC | 411,093 | |
17,484 | Pitney Bowes, Inc. | 68,887 | |
1,351 | Robert Half, Inc. | 100,177 | |
592 | 2 | Rockwell Automation, Inc. | 199,084 |
984 | Ryder System, Inc. | 100,516 | |
6,476 | 1 | SPX Technologies, Inc. | 547,934 |
2,020 | Trane Technologies PLC | 402,869 | |
1,458 | 1 | TriNet Group, Inc. | 153,425 |
12,099 | 1 | Uber Technologies, Inc. | 598,417 |
13,664 | 1 | United Airlines Holdings, Inc. | 742,092 |
259 | 1 | United Rentals, Inc. | 120,352 |
3,832 | Verisk Analytics, Inc. | 877,298 | |
1,861 | Waste Management, Inc. | 304,813 | |
1,443 | 1 | Willscot Corp. | 69,192 |
7,809 | 1 | XPO, Inc. | 540,695 |
8,430 | Xylem, Inc. | 950,482 | |
TOTAL | 11,323,063 | ||
Information Technology— 13.9% | |||
470 | Accenture PLC | 148,685 | |
3,300 | 1 | Adobe, Inc. | 1,802,361 |
28,087 | Apple, Inc. | 5,517,691 | |
2,884 | 1 | Arista Networks, Inc. | 447,280 |
2,290 | 1 | Box, Inc. | 71,563 |
2,160 | Broadcom, Inc. | 1,941,084 | |
3,897 | 1 | Cadence Design Systems, Inc. | 911,937 |
3,677 | 1 | Cerence, Inc. | 102,257 |
4,701 | 1 | Cirrus Logic, Inc. | 379,841 |
17,337 | Cisco Systems, Inc. | 902,217 | |
2,931 | 1 | Commvault Systems, Inc. | 228,413 |
4,264 | 1 | Confluent, Inc. | 147,279 |
14,810 | Dell Technologies, Inc. | 783,745 | |
14,042 | 1 | DXC Technology Co. | 388,261 |
945 | 1 | F5, Inc. | 149,537 |
20,000 | 1 | Fortinet, Inc. | 1,554,400 |
14,151 | Hewlett Packard Enterprise Co. | 245,944 | |
866 | 1 | HubSpot, Inc. | 502,756 |
11,167 | Microsoft Corp. | 3,751,219 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Information Technology— continued | |||
3,820 | 1 | Nutanix, Inc. | $ 115,364 |
3,059 | NVIDIA Corp. | 1,429,440 | |
5,551 | 1 | Palo Alto Networks, Inc. | 1,387,528 |
18,478 | Pegasystems, Inc. | 974,714 | |
18,409 | 1 | Pure Storage, Inc. | 680,949 |
3,548 | 1 | Salesforce, Inc. | 798,335 |
3,694 | 1 | Semtech Corp. | 107,865 |
432 | 1 | ServiceNow, Inc. | 251,856 |
4,307 | Skyworks Solutions, Inc. | 492,592 | |
523 | 1 | Synopsys, Inc. | 236,291 |
7,238 | Vishay Intertechnology, Inc. | 203,750 | |
9,197 | Xerox Holdings Corp. | 146,968 | |
12,555 | 1 | Zoom Video Communications, Inc. | 920,909 |
TOTAL | 27,723,031 | ||
Materials— 1.2% | |||
2,792 | 1 | Berry Global Group, Inc. | 183,071 |
352 | Linde PLC | 137,516 | |
29,644 | Newmont Corp. | 1,272,320 | |
1,951 | Nucor Corp. | 335,748 | |
2,236 | Steel Dynamics, Inc. | 238,313 | |
5,688 | United States Steel Corp. | 145,044 | |
TOTAL | 2,312,012 | ||
Real Estate— 3.1% | |||
2,500 | Alexandria Real Estate Equities, Inc. | 314,200 | |
11,100 | American Homes 4 Rent | 416,028 | |
1,300 | Avalonbay Communities, Inc. | 245,245 | |
6,500 | Brixmor Property Group, Inc. | 147,810 | |
2,700 | Digital Realty Trust, Inc. | 336,474 | |
2,750 | EastGroup Properties, Inc. | 487,245 | |
7,700 | EPR PPTYS | 343,728 | |
700 | Equinix, Inc. | 566,944 | |
1,600 | Equity Residential Properties Trust | 105,504 | |
11,400 | Invitation Homes, Inc. | 404,700 | |
9,000 | Kite Realty Group Trust | 205,920 | |
3,400 | NNN REIT, Inc. | 145,112 | |
3,800 | ProLogis, Inc. | 474,050 | |
1,250 | Public Storage | 352,188 | |
3,500 | Rexford Industrial Realty, Inc. | 192,815 | |
3,900 | Ryman Hospitality Properties, Inc. | 371,631 | |
2,500 | UDR, Inc. | 102,200 | |
12,900 | VICI Properties, Inc. | 406,092 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Real Estate— continued | |||
6,000 | Welltower, Inc. | $ 492,900 | |
TOTAL | 6,110,786 | ||
Utilities— 0.7% | |||
3,971 | Consolidated Edison Co. | 376,689 | |
10,793 | Exelon Corp. | 451,795 | |
5,659 | WEC Energy Group, Inc. | 508,518 | |
TOTAL | 1,337,002 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $90,682,208) | 108,079,134 | ||
CORPORATE BONDS— 11.9% | |||
Basic Industry - Chemicals— 0.0% | |||
$ 10,000 | DuPont de Nemours, Inc., Sr. Unsecd. Note, 5.319%, 11/15/2038 | 9,929 | |
Basic Industry - Metals & Mining— 0.1% | |||
200,000 | Anglo American Capital PLC, Sr. Unsecd. Note, 144A, 5.500%, 5/2/2033 | 196,464 | |
15,000 | Anglogold Ashanti Holdings PLC, Sr. Note, 6.500%, 4/15/2040 | 14,872 | |
20,000 | Southern Copper Corp., Sr. Unsecd. Note, 6.750%, 4/16/2040 | 22,315 | |
TOTAL | 233,651 | ||
Capital Goods - Aerospace & Defense— 0.7% | |||
200,000 | BAE Systems PLC, Sr. Unsecd. Note, 144A, 3.000%, 9/15/2050 | 135,979 | |
275,000 | Boeing Co., Sr. Unsecd. Note, 4.875%, 5/1/2025 | 271,647 | |
110,000 | Huntington Ingalls Industries, Inc., Sr. Unsecd. Note, Series WI, 3.844%, 5/1/2025 | 106,432 | |
300,000 | Leidos, Inc., Sr. Unsecd. Note, Series WI, 2.300%, 2/15/2031 | 240,302 | |
170,000 | Leidos, Inc., Sr. Unsecd. Note, Series WI, 3.625%, 5/15/2025 | 163,526 | |
400,000 | Lockheed Martin Corp., Sr. Unsecd. Note, 4.750%, 2/15/2034 | 397,764 | |
15,000 | Spirit AeroSystems, Inc., Sr. Unsecd. Note, 4.600%, 6/15/2028 | 12,777 | |
40,000 | 3 | Textron Financial Corp., Jr. Sub. Note, 144A, 7.055% (3-month USLIBOR +1.735%), 2/15/2042 | 30,079 |
50,000 | Textron, Inc., Sr. Unsecd. Note, 4.000%, 3/15/2026 | 48,260 | |
50,000 | Textron, Inc., Sr. Unsecd. Note, 4.300%, 3/1/2024 | 49,495 | |
TOTAL | 1,456,261 | ||
Capital Goods - Building Materials— 0.1% | |||
200,000 | Allegion US Holdings Co., Inc., Sr. Unsecd. Note, 3.200%, 10/1/2024 | 193,381 | |
Capital Goods - Construction Machinery— 0.2% | |||
205,000 | Ashtead Capital, Inc., Sr. Unsecd. Note, 144A, 5.550%, 5/30/2033 | 199,570 | |
255,000 | CNH Industrial Capital America LLC, Sr. Unsecd. Note, 4.550%, 4/10/2028 | 247,656 | |
TOTAL | 447,226 | ||
Capital Goods - Diversified Manufacturing— 0.1% | |||
60,000 | Lennox International, Inc., Sr. Unsecd. Note, 1.700%, 8/1/2027 | 52,546 | |
175,000 | Roper Technologies, Inc., Sr. Unsecd. Note, 2.000%, 6/30/2030 | 143,905 | |
TOTAL | 196,451 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS— continued | |||
Communications - Cable & Satellite— 0.2% | |||
$ 300,000 | Charter Communications Operating, LLC / Charter Communications Operating Capital Corp., Sec. Fac. Bond, 2.250%, 1/15/2029 | $ 248,952 | |
145,000 | Comcast Corp., Sr. Unsecd. Note, 2.800%, 1/15/2051 | 94,801 | |
15,000 | Comcast Corp., Sr. Unsecd. Note, 3.900%, 3/1/2038 | 12,976 | |
10,000 | Comcast Corp., Sr. Unsecd. Note, 4.400%, 8/15/2035 | 9,405 | |
TOTAL | 366,134 | ||
Communications - Media & Entertainment— 0.0% | |||
30,000 | Grupo Televisa S.A., Sr. Unsecd. Note, 6.125%, 1/31/2046 | 30,003 | |
Communications - Telecom Wireless— 0.6% | |||
150,000 | Crown Castle, Inc., Sr. Unsecd. Note, 3.700%, 6/15/2026 | 142,928 | |
350,000 | Crown Castle, Inc., Sr. Unsecd. Note, 5.100%, 5/1/2033 | 341,306 | |
300,000 | T-Mobile USA, Inc., Sr. Unsecd. Note, 5.050%, 7/15/2033 | 293,708 | |
400,000 | T-Mobile USA, Inc., Sr. Unsecd. Note, 5.650%, 1/15/2053 | 402,240 | |
TOTAL | 1,180,182 | ||
Communications - Telecom Wirelines— 0.2% | |||
12,000 | AT&T, Inc., Sr. Unsecd. Note, 3.500%, 9/15/2053 | 8,145 | |
300,000 | AT&T, Inc., Sr. Unsecd. Note, 3.650%, 6/1/2051 | 212,246 | |
11,000 | AT&T, Inc., Sr. Unsecd. Note, 3.650%, 9/15/2059 | 7,367 | |
5,000 | AT&T, Inc., Sr. Unsecd. Note, 4.500%, 5/15/2035 | 4,514 | |
150,000 | Telefonica Emisiones SAU, Sr. Unsecd. Note, 5.520%, 3/1/2049 | 136,294 | |
90,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 3.150%, 3/22/2030 | 79,397 | |
TOTAL | 447,963 | ||
Consumer Cyclical - Automotive— 0.2% | |||
175,000 | General Motors Financial Co., Inc., Sr. Unsecd. Note, 3.100%, 1/12/2032 | 143,152 | |
10,000 | General Motors Financial Co., Inc., Sr. Unsecd. Note, 3.950%, 4/13/2024 | 9,861 | |
175,000 | General Motors Financial Co., Inc., Sr. Unsecd. Note, 5.850%, 4/6/2030 | 174,900 | |
10,000 | Mercedes-Benz Finance NA, LLC Co. Guarantee, 8.500%, 1/18/2031 | 12,378 | |
TOTAL | 340,291 | ||
Consumer Cyclical - Retailers— 0.4% | |||
170,000 | AutoNation, Inc., Sr. Unsecd. Note, 4.750%, 6/1/2030 | 160,110 | |
250,000 | AutoZone, Inc., Sr. Unsecd. Note, 3.250%, 4/15/2025 | 240,613 | |
135,000 | Tractor Supply Co., Sr. Unsecd. Note, 5.250%, 5/15/2033 | 133,530 | |
250,000 | WalMart, Inc., Sr. Unsecd. Note, 4.500%, 4/15/2053 | 241,327 | |
TOTAL | 775,580 | ||
Consumer Cyclical - Services— 0.1% | |||
125,000 | Amazon.com, Inc., Sr. Unsecd. Note, 3.800%, 12/5/2024 | 122,963 | |
15,000 | Expedia Group, Inc., Sr. Unsecd. Note, Series WI, 3.250%, 2/15/2030 | 13,207 | |
10,000 | University of Southern California, Sr. Unsecd. Note, 5.250%, 10/1/2111 | 9,815 | |
70,000 | Visa, Inc., Sr. Unsecd. Note, 3.150%, 12/14/2025 | 67,142 | |
15,000 | Visa, Inc., Sr. Unsecd. Note, 4.150%, 12/14/2035 | 14,267 | |
TOTAL | 227,394 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS— continued | |||
Consumer Non-Cyclical - Food/Beverage— 0.5% | |||
$ 30,000 | Anheuser-Busch Cos LLC / Anheuser-Busch InBev Worldwide, Inc., Sr. Unsecd. Note, 4.700%, 2/1/2036 | $ 29,113 | |
300,000 | Constellation Brands, Inc., Sr. Unsecd. Note, 4.900%, 5/1/2033 | 293,347 | |
300,000 | Danone SA, Sr. Unsecd. Note, 144A, 2.947%, 11/2/2026 | 282,748 | |
80,000 | General Mills, Inc., Sr. Unsecd. Note, 3.000%, 2/1/2051 | 55,982 | |
270,000 | Heineken NV, Sr. Unsecd. Note, 144A, 3.500%, 1/29/2028 | 257,258 | |
15,000 | Kraft Heinz Foods Co., Sr. Unsecd. Note, 5.200%, 7/15/2045 | 14,201 | |
50,000 | Mead Johnson Nutrition Co., Sr. Unsecd. Note, 4.125%, 11/15/2025 | 48,874 | |
TOTAL | 981,523 | ||
Consumer Non-Cyclical - Health Care— 0.3% | |||
135,000 | Agilent Technologies, Inc., Sr. Unsecd. Note, 2.750%, 9/15/2029 | 117,762 | |
15,000 | CVS Health Corp., Sr. Unsecd. Note, 4.100%, 3/25/2025 | 14,711 | |
105,000 | GE Healthcare Holding LLC, Sr. Unsecd. Note, 6.377%, 11/22/2052 | 116,352 | |
300,000 | HCA, Inc., Sr. Unsecd. Note, 5.500%, 6/1/2033 | 298,819 | |
TOTAL | 547,644 | ||
Consumer Non-Cyclical - Pharmaceuticals— 0.2% | |||
500,000 | AbbVie, Inc., Sr. Unsecd. Note, 4.250%, 11/21/2049 | 429,335 | |
15,000 | Amgen, Inc., Sr. Unsecd. Note, 4.400%, 5/1/2045 | 12,883 | |
10,000 | Bristol-Myers Squibb Co., Sr. Unsecd. Note, Series WI, 4.125%, 6/15/2039 | 8,993 | |
15,000 | Johnson & Johnson, Sr. Unsecd. Note, 3.550%, 3/1/2036 | 13,447 | |
TOTAL | 464,658 | ||
Consumer Non-Cyclical - Tobacco— 0.2% | |||
450,000 | Philip Morris International, Inc., Sr. Unsecd. Note, 5.750%, 11/17/2032 | 460,424 | |
Energy - Independent— 0.2% | |||
250,000 | Canadian Natural Resources Ltd., Sr. Unsecd. Note, 3.900%, 2/1/2025 | 242,535 | |
125,000 | Cimarex Energy Co., Sr. Unsecd. Note, 3.900%, 5/15/2027 | 106,852 | |
20,000 | EQT Corp., Sr. Unsecd. Note, 3.900%, 10/1/2027 | 18,767 | |
TOTAL | 368,154 | ||
Energy - Integrated— 0.5% | |||
135,000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 3.119%, 5/4/2026 | 128,690 | |
300,000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 3.937%, 9/21/2028 | 287,482 | |
170,000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 4.893%, 9/11/2033 | 168,072 | |
5,000 | ConocoPhillips Co., Sr. Unsecd. Note, 4.025%, 3/15/2062 | 4,037 | |
270,000 | Exxon Mobil Corp., Sr. Unsecd. Note, 2.992%, 3/19/2025 | 260,698 | |
240,000 | Husky Energy, Inc., Sr. Unsecd. Note, 4.400%, 4/15/2029 | 221,024 | |
TOTAL | 1,070,003 | ||
Energy - Midstream— 0.4% | |||
125,000 | Boardwalk Pipeline Partners LP, Sr. Unsecd. Note, 3.600%, 9/1/2032 | 106,706 | |
115,000 | Energy Transfer LP, Sr. Unsecd. Note, 4.050%, 3/15/2025 | 112,061 | |
75,000 | Energy Transfer LP, Sr. Unsecd. Note, 4.900%, 2/1/2024 | 74,455 | |
20,000 | Energy Transfer LP, Sr. Unsecd. Note, 5.500%, 6/1/2027 | 20,000 | |
10,000 | Energy Transfer LP, Sr. Unsecd. Note, 6.125%, 12/15/2045 | 9,580 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS— continued | |||
Energy - Midstream— continued | |||
$ 170,000 | Enterprise Products Operating LLC, Sr. Unsecd. Note, 3.950%, 2/15/2027 | $ 164,171 | |
20,000 | Kinder Morgan Energy Partners LP, Sr. Unsecd. Note, Series MTN, 6.950%, 1/15/2038 | 21,811 | |
40,000 | MPLX LP, Sr. Unsecd. Note, 4.125%, 3/1/2027 | 38,468 | |
5,000 | MPLX LP, Sr. Unsecd. Note, 4.500%, 4/15/2038 | 4,316 | |
190,000 | ONEOK, Inc., Sr. Unsecd. Note, 6.100%, 11/15/2032 | 194,183 | |
70,000 | Targa Resources, Inc., Sr. Unsecd. Note, 4.200%, 2/1/2033 | 62,571 | |
10,000 | Western Gas Partners LP, Sr. Unsecd. Note, 4.750%, 8/15/2028 | 9,584 | |
TOTAL | 817,906 | ||
Energy - Oil Field Services— 0.1% | |||
125,000 | Ovintiv, Inc., Sr. Unsecd. Note, 7.100%, 7/15/2053 | 133,441 | |
Energy - Refining— 0.0% | |||
15,000 | HF Sinclair Corp., Sr. Unsecd. Note, 5.875%, 4/1/2026 | 15,069 | |
15,000 | Marathon Petroleum Corp., Sr. Unsecd. Note, 4.500%, 4/1/2048 | 11,886 | |
10,000 | Marathon Petroleum Corp., Sr. Unsecd. Note, 6.500%, 3/1/2041 | 10,369 | |
15,000 | Valero Energy Corp., Sr. Unsecd. Note, 4.350%, 6/1/2028 | 14,473 | |
TOTAL | 51,797 | ||
Financial Institution - Banking— 2.3% | |||
350,000 | Bank of America Corp., Sr. Unsecd. Note, 5.288%, 4/25/2034 | 347,466 | |
300,000 | Bank of America Corp., Sr. Unsecd. Note, Series GMTN, 3.500%, 4/19/2026 | 288,146 | |
200,000 | Bank of America Corp., Sub. Note, Series L, 3.950%, 4/21/2025 | 193,791 | |
15,000 | Bank of America Corp., Sub. Note, Series MTN, 4.200%, 8/26/2024 | 14,766 | |
15,000 | Bank of America Corp., Sub., Series MTN, 4.450%, 3/3/2026 | 14,609 | |
20,000 | Bank of New York Mellon, N.A., Sr. Unsecd. Note, 3.400%, 5/15/2024 | 19,633 | |
165,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.057%, 1/25/2033 | 137,857 | |
250,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.300%, 4/27/2025 | 241,471 | |
170,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.400%, 5/1/2026 | 161,792 | |
300,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.785%, 3/17/2033 | 265,261 | |
370,000 | Citigroup, Inc., Sr. Unsecd. Note, 5.610%, 9/29/2026 | 369,373 | |
15,000 | Citigroup, Inc., Sub. Note, 4.450%, 9/29/2027 | 14,437 | |
30,000 | Comerica, Inc., 3.800%, 7/22/2026 | 27,848 | |
75,000 | Fifth Third Bancorp, Sr. Unsecd. Note, 3.650%, 1/25/2024 | 74,175 | |
250,000 | FNB Corp. (PA), Sr. Unsecd. Note, 5.150%, 8/25/2025 | 244,026 | |
150,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 6.250%, 2/1/2041 | 161,126 | |
10,000 | 4 | JPMorgan Chase & Co., Jr. Sub. Deb., Series X, 6.100%, 10/1/2024 | 9,952 |
25,000 | 4 | JPMorgan Chase & Co., Jr. Sub. Note, Series FF, 5.000%, 8/1/2024 | 24,459 |
15,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 3.882%, 7/24/2038 | 12,966 | |
400,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 5.350%, 6/1/2034 | 403,030 | |
100,000 | Morgan Stanley, Sr. Unsecd. Note, 2.943%, 1/21/2033 | 83,270 | |
180,000 | Morgan Stanley, Sr. Unsecd. Note, 5.250%, 4/21/2034 | 177,755 | |
15,000 | Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 4.000%, 7/23/2025 | 14,618 | |
240,000 | PNC Financial Services Group, Inc., Sr. Unsecd. Note, 5.582%, 6/12/2029 | 240,590 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS— continued | |||
Financial Institution - Banking— continued | |||
$ 300,000 | State Street Corp., Sr. Unsecd. Note, 5.159%, 5/18/2034 | $ 294,676 | |
10,000 | State Street Corp., Sub. Deb., 3.031%, 11/1/2034 | 8,660 | |
300,000 | Truist Financial Corp., Sr. Unsecd. Note, Series MTN, 5.867%, 6/8/2034 | 302,809 | |
300,000 | US Bancorp, Sr. Unsecd. Note, 5.836%, 6/12/2034 | 304,321 | |
250,000 | US Bancorp, Sr. Unsecd. Note, Series MTN, 1.375%, 7/22/2030 | 192,610 | |
10,000 | Wells Fargo & Co., Series MTN, 4.100%, 6/3/2026 | 9,606 | |
10,000 | Westpac Banking Corp., Sub., Series GMTN, 4.322%, 11/23/2031 | 9,335 | |
TOTAL | 4,664,434 | ||
Financial Institution - Broker/Asset Mgr/Exchange— 0.1% | |||
80,000 | Invesco Finance PLC, Sr. Unsecd. Note, 3.750%, 1/15/2026 | 77,227 | |
70,000 | Nuveen LLC, Sr. Unsecd. Note, 144A, 4.000%, 11/1/2028 | 66,060 | |
TOTAL | 143,287 | ||
Financial Institution - Finance Companies— 0.2% | |||
150,000 | AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 4.875%, 1/16/2024 | 149,122 | |
220,000 | Air Lease Corp., Sr. Unsecd. Note, 5.850%, 12/15/2027 | 221,993 | |
TOTAL | 371,115 | ||
Financial Institution - Insurance - Health— 0.2% | |||
300,000 | UnitedHealth Group, Inc., Sr. Unsecd. Note, 4.750%, 5/15/2052 | 282,818 | |
Financial Institution - Insurance - Life— 0.3% | |||
400,000 | AIA Group Ltd., Sub., 144A, 3.200%, 9/16/2040 | 297,675 | |
15,000 | MetLife, Inc., Jr. Sub. Note, 6.400%, 12/15/2036 | 15,017 | |
10,000 | MetLife, Inc., Jr. Sub. Note, 10.750%, 8/1/2039 | 12,944 | |
250,000 | MetLife, Inc., Sr. Unsecd. Note, 3.600%, 4/10/2024 | 245,955 | |
15,000 | Penn Mutual Life Insurance Co., Sr. Note, 144A, 7.625%, 6/15/2040 | 16,057 | |
50,000 | Prudential Financial, Inc., Sr. Unsecd. Note, Series MTN, 6.200%, 11/15/2040 | 53,528 | |
TOTAL | 641,176 | ||
Financial Institution - Insurance - P&C— 0.2% | |||
300,000 | American International Group, Sr. Unsecd. Note, 5.125%, 3/27/2033 | 295,167 | |
10,000 | Berkshire Hathaway Finance Corp., Sr. Unsecd. Note, 4.200%, 8/15/2048 | 9,009 | |
55,000 | Nationwide Mutual Insurance Co., Sub., 144A, 4.350%, 4/30/2050 | 41,596 | |
TOTAL | 345,772 | ||
Financial Institution - REIT - Apartment— 0.1% | |||
200,000 | UDR, Inc., Sr. Unsecd. Note, Series MTN, 2.100%, 8/1/2032 | 151,791 | |
70,000 | UDR, Inc., Sr. Unsecd. Note, Series MTN, 2.950%, 9/1/2026 | 64,358 | |
TOTAL | 216,149 | ||
Financial Institution - REIT - Healthcare— 0.1% | |||
185,000 | Welltower, Inc., Sr. Unsecd. Note, 2.700%, 2/15/2027 | 170,322 | |
Financial Institution - REIT - Office— 0.0% | |||
70,000 | Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 3.950%, 1/15/2028 | 65,673 | |
Financial Institution - REIT - Other— 0.0% | |||
75,000 | WP Carey, Inc., Sr. Unsecd. Note, 4.600%, 4/1/2024 | 74,419 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS— continued | |||
Financial Institution - REITs— 0.0% | |||
$ 60,000 | Camden Property Trust, Sr. Unsecd. Note, 2.800%, 5/15/2030 | $ 52,361 | |
Technology— 0.7% | |||
10,000 | Apple, Inc., Sr. Unsecd. Note, 3.850%, 5/4/2043 | 8,892 | |
70,000 | Broadcom, Inc., Sr. Unsecd. Note, 144A, 3.750%, 2/15/2051 | 51,171 | |
220,000 | Broadcom, Inc., Sr. Unsecd. Note, 144A, 4.150%, 4/15/2032 | 199,043 | |
20,000 | Corning, Inc., Unsecd. Note, 4.750%, 3/15/2042 | 18,194 | |
240,000 | Dell International LLC / EMC Corp., Sr. Unsecd. Note, 6.020%, 6/15/2026 | 243,405 | |
110,000 | Fiserv, Inc., Sr. Unsecd. Note, 3.500%, 7/1/2029 | 101,288 | |
265,000 | Intel Corp., Sr. Unsecd. Note, 3.400%, 3/25/2025 | 257,706 | |
7,000 | Microsoft Corp., Sr. Unsecd. Note, 2.921%, 3/17/2052 | 5,120 | |
8,000 | Microsoft Corp., Sr. Unsecd. Note, 3.450%, 8/8/2036 | 7,230 | |
500,000 | Oracle Corp., Sr. Unsecd. Note, 6.250%, 11/9/2032 | 528,958 | |
TOTAL | 1,421,007 | ||
Technology Services— 0.0% | |||
5,000 | Global Payments, Inc., Sr. Unsecd. Note, 3.200%, 8/15/2029 | 4,410 | |
Transportation - Airlines— 0.1% | |||
30,000 | Delta Air Lines, Inc., Sr. Unsecd. Note, 2.900%, 10/28/2024 | 28,847 | |
110,000 | Southwest Airlines Co., Sr. Unsecd. Note, 5.250%, 5/4/2025 | 109,404 | |
TOTAL | 138,251 | ||
Transportation - Railroads— 0.1% | |||
225,000 | Canadian Pacific Railway Co., Sr. Unsecd. Note, 3.125%, 6/1/2026 | 210,197 | |
Transportation - Services— 0.2% | |||
15,000 | Enterprise Rent-A-Car USA Finance Co., Sr. Unsecd. Note, 144A, 5.625%, 3/15/2042 | 15,024 | |
20,000 | FedEx Corp., Sr. Unsecd. Note, 3.900%, 2/1/2035 | 17,652 | |
210,000 | Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 5.550%, 5/1/2028 | 206,920 | |
125,000 | United Parcel Service, Inc., Sr. Unsecd. Note, 3.900%, 4/1/2025 | 122,419 | |
TOTAL | 362,015 | ||
Utility - Electric— 1.6% | |||
200,000 | Alabama Power Co., Sr. Unsecd. Note, 3.000%, 3/15/2052 | 135,128 | |
90,000 | Ameren Corp., Sr. Unsecd. Note, 1.950%, 3/15/2027 | 80,757 | |
70,000 | Electricite de France SA, Note, 144A, 5.600%, 1/27/2040 | 66,588 | |
300,000 | Electricite de France SA, Sr. Unsecd. Note, 144A, 4.500%, 9/21/2028 | 286,735 | |
140,000 | Emera US Finance LP, Sr. Unsecd. Note, 4.750%, 6/15/2046 | 112,680 | |
170,000 | EverSource Energy, Sr. Unsecd. Note, 3.350%, 3/15/2026 | 161,152 | |
200,000 | Exelon Corp., Sr. Unsecd. Note, 3.400%, 4/15/2026 | 190,841 | |
110,000 | National Rural Utilities Cooperative Finance Corp., Sr. Sub. Note, 5.250%, 4/20/2046 | 103,760 | |
25,000 | National Rural Utilities Cooperative Finance Corp., Sr. Unsecd. Note, Series MTNC, 8.000%, 3/1/2032 | 29,304 | |
600,000 | NextEra Energy Capital Holdings, Inc., Sr. Unsecd. Note, 5.250%, 2/28/2053 | 574,715 | |
300,000 | Oncor Electric Delivery Co. LLC, Sec. Fac. Bond, 4.950%, 9/15/2052 | 287,408 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS— continued | |||
Utility - Electric— continued | |||
$ 250,000 | PPL Capital Funding, Inc., Sr. Unsecd. Note, 3.100%, 5/15/2026 | $ 236,443 | |
175,000 | Southern Co., Sr. Unsecd. Note, 3.250%, 7/1/2026 | 165,568 | |
250,000 | Virginia Electric & Power Co., Sr. Unsecd. Note, 5.450%, 4/1/2053 | 251,851 | |
300,000 | WEC Energy Group, Inc., Sr. Unsecd. Note, 1.800%, 10/15/2030 | 238,251 | |
170,000 | WEC Energy Group, Inc., Sr. Unsecd. Note, 5.150%, 10/1/2027 | 170,043 | |
TOTAL | 3,091,224 | ||
Utility - Natural Gas— 0.3% | |||
445,000 | National Fuel Gas Co., Sr. Unsecd. Note, 5.500%, 1/15/2026 | 439,685 | |
230,000 | ONE Gas, Inc., Sr. Unsecd. Note, 4.250%, 9/1/2032 | 216,484 | |
5,000 | TransCanada PipeLines Ltd., Sr. Unsecd. Note, 6.200%, 10/15/2037 | 5,151 | |
TOTAL | 661,320 | ||
Utility - Other— 0.1% | |||
125,000 | National Grid-SP PLC, Sr. Unsecd. Note, 5.602%, 6/12/2028 | 125,588 | |
TOTAL CORPORATE BONDS (IDENTIFIED COST $25,329,780) | 23,841,534 | ||
U.S. TREASURIES— 5.5% | |||
U.S. Treasury Bond— 1.2% | |||
1,200,000 | 5 | United States Treasury Bond, 2.000%, 8/15/2051 | 791,659 |
880,000 | United States Treasury Bond, 2.250%, 2/15/2052 | 616,562 | |
125,000 | United States Treasury Bond, 3.000%, 8/15/2052 | 103,171 | |
50,000 | United States Treasury Bond, 3.250%, 5/15/2042 | 43,654 | |
225,000 | United States Treasury Bond, 3.375%, 8/15/2042 | 199,745 | |
175,000 | United States Treasury Bond, 3.625%, 2/15/2053 | 162,951 | |
400,000 | United States Treasury Bond, 3.625%, 5/15/2053 | 373,687 | |
TOTAL | 2,291,429 | ||
U.S. Treasury Note— 4.3% | |||
325,000 | United States Treasury Note, 1.250%, 12/31/2026 | 292,779 | |
250,000 | United States Treasury Note, 1.875%, 2/28/2027 | 229,320 | |
1,025,000 | United States Treasury Note, 2.375%, 3/31/2029 | 932,662 | |
275,000 | United States Treasury Note, 2.500%, 3/31/2027 | 257,727 | |
725,000 | United States Treasury Note, 2.750%, 4/30/2027 | 684,671 | |
400,000 | United States Treasury Note, 2.750%, 7/31/2027 | 376,995 | |
500,000 | United States Treasury Note, 2.750%, 5/31/2029 | 463,594 | |
850,000 | United States Treasury Note, 2.875%, 4/30/2029 | 793,948 | |
550,000 | United States Treasury Note, 3.125%, 8/31/2029 | 519,932 | |
500,000 | United States Treasury Note, 3.250%, 6/30/2029 | 476,189 | |
675,000 | United States Treasury Note, 3.625%, 5/31/2028 | 658,863 | |
600,000 | United States Treasury Note, 3.750%, 5/31/2030 | 588,000 | |
550,000 | United States Treasury Note, 4.000%, 6/30/2028 | 545,574 | |
100,000 | United States Treasury Note, 4.000%, 2/28/2030 | 99,367 | |
500,000 | United States Treasury Note, 4.125%, 1/31/2025 | 492,289 | |
600,000 | United States Treasury Note, 4.125%, 9/30/2027 | 595,736 |
Shares or Principal Amount | Value | ||
U.S. TREASURIES— continued | |||
U.S. Treasury Note— continued | |||
$ 600,000 | United States Treasury Note, 4.625%, 2/28/2025 | $ 595,477 | |
TOTAL | 8,603,123 | ||
TOTAL U.S. TREASURIES (IDENTIFIED COST $11,847,008) | 10,894,552 | ||
ASSET-BACKED SECURITIES— 2.5% | |||
Auto Receivables— 1.0% | |||
273,945 | Santander Bank Auto Credit-Linked Notes 2022-B, Class D, 6.793%, 8/16/2032 | 269,916 | |
300,000 | Santander Drive Auto Receivables Trust 2023-1, Class C, 5.090%, 5/15/2030 | 293,818 | |
250,000 | Santander Drive Auto Receivables Trust 2023-3, Class C, 5.770%, 11/15/2030 | 250,563 | |
225,000 | SFS Auto Receivables Securitization Trust 2023-1A, Class C, 5.970%, 2/20/2031 | 224,151 | |
250,000 | Tesla Auto Lease Trust 2023-A, Class B, 6.410%, 7/20/2027 | 249,431 | |
250,000 | Toyota Auto Loan Extended Note 2023-1A, Class A, 4.930%, 6/25/2036 | 248,754 | |
400,000 | Toyota Auto Receivables Owner Trust 2020-B, Class A4, 1.660%, 9/15/2025 | 393,100 | |
90,000 | World Omni Auto Receivables Trust 2021-A, Class C, 0.890%, 8/16/2027 | 82,360 | |
TOTAL | 2,012,093 | ||
Credit Card— 0.4% | |||
345,000 | First National Master Note Trust 2023-1, Class A, 5.130%, 4/15/2029 | 340,186 | |
400,000 | Master Credit Card Trust 2022-2A, Class C, 2.730%, 7/21/2028 | 351,888 | |
TOTAL | 692,074 | ||
Equipment Lease— 0.7% | |||
200,000 | Dell Equipment Finance Trust 2023-2, Class C, 6.060%, 1/22/2029 | 200,233 | |
200,000 | DLLMT LLC 2023-1A, Class A4, 5.350%, 3/20/2031 | 198,410 | |
500,000 | HPEFS Equipment Trust 2022-1A, Class C, 1.960%, 5/21/2029 | 472,422 | |
300,000 | Kubota Credit Owner Trust 2023-2A, Class A4, 5.230%, 6/15/2028 | 298,369 | |
300,000 | MMAF Equipment Finance LLC 2023-A, Class A4, 5.500%, 12/13/2038 | 303,922 | |
TOTAL | 1,473,356 | ||
Other— 0.3% | |||
450,000 | PFS Financing Corp. 2020-G, Class A, 0.970%, 2/15/2026 | 439,220 | |
225,000 | PFS Financing Corp. 2023-B, Class A, 5.270%, 5/15/2028 | 222,572 | |
TOTAL | 661,792 | ||
Student Loans— 0.1% | |||
204,580 | Navient Student Loan Trust 2021-A, Class A, 0.840%, 5/15/2069 | 177,586 | |
TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $5,162,670) | 5,016,901 | ||
COMMERCIAL MORTGAGE-BACKED SECURITIES— 0.5% | |||
Commercial Mortgage— 0.2% | |||
200,000 | BMO Mortgage Trust 2023-5C1, Class A3, 6.534%, 8/15/2056 | 206,359 | |
200,000 | BMO Mortgage Trust 2023-C4, Class A5, 5.116%, 2/15/2056 | 197,730 | |
TOTAL | 404,089 |
Shares or Principal Amount | Value | ||
COMMERCIAL MORTGAGE-BACKED SECURITIES— continued | |||
Federal Home Loan Mortgage Corporation— 0.3% | |||
$ 20,942 | Federal Home Loan Mortgage Corp. REMIC, Series K055, Class A1, 2.263%, 4/25/2025 | $ 20,411 | |
383,850 | Federal Home Loan Mortgage Corp. REMIC, Series K106, Class A1, 1.783%, 10/25/2029 | 336,521 | |
350,000 | Federal Home Loan Mortgage Corp. REMIC, Series K737, Class A2, 2.525%, 10/25/2026 | 325,328 | |
TOTAL | 682,260 | ||
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $1,179,603) | 1,086,349 | ||
COLLATERALIZED MORTGAGE OBLIGATIONS— 0.3% | |||
Commercial Mortgage— 0.2% | |||
190,000 | Bank, Class A4, 3.488%, 11/15/2050 | 174,377 | |
200,000 | JPMDB Commercial Mortgage Securities Trust 2016-C4, Class A3, 3.141%, 12/15/2049 | 182,670 | |
TOTAL | 357,047 | ||
Federal Home Loan Mortgage Corporation— 0.0% | |||
1,681 | Federal Home Loan Mortgage Corp. REMIC, Series 2497, Class JH, 6.000%, 9/15/2032 | 1,708 | |
Federal National Mortgage Association— 0.0% | |||
251 | FNMA REMIC, Series 2003-35, Class UC, 3.750%, 5/25/2033 | 244 | |
Non-Agency Mortgage— 0.1% | |||
24 | 6 | Bear Stearns Mortgage Securities, Inc. 1997-6, Class 1A, 6.725%, 3/25/2031 | 24 |
388,945 | GS Mortgage-Backed Securities Trust 2023-PJ1, Class A4, 3.500%, 2/25/2053 | 336,710 | |
TOTAL | 336,734 | ||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $753,522) | 695,733 | ||
MORTGAGE-BACKED SECURITIES— 0.2% | |||
Federal Home Loan Mortgage Corporation— 0.0% | |||
20,544 | Federal Home Loan Mortgage Corp., Pool G07801, 4.000%, 10/1/2044 | 19,635 | |
Federal National Mortgage Association— 0.2% | |||
5,231 | Federal National Mortgage Association, Pool 357761, 5.500%, 5/1/2035 | 5,299 | |
561 | Federal National Mortgage Association, Pool 728709, 5.500%, 7/1/2033 | 565 | |
21,080 | Federal National Mortgage Association, Pool 932864, 4.000%, 12/1/2040 | 20,244 | |
36,585 | Federal National Mortgage Association, Pool AB7859, 3.500%, 2/1/2043 | 33,976 | |
27,627 | Federal National Mortgage Association, Pool AD6938, 4.500%, 6/1/2040 | 27,077 | |
12,820 | Federal National Mortgage Association, Pool AQ0945, 3.000%, 11/1/2042 | 11,560 | |
15,543 | Federal National Mortgage Association, Pool AT2127, 3.000%, 4/1/2043 | 14,020 | |
9,008 | Federal National Mortgage Association, Pool AT7861, 3.000%, 6/1/2028 | 8,617 | |
14,944 | Federal National Mortgage Association, Pool BM4388, 4.000%, 8/1/2048 | 14,177 | |
8,166 | Federal National Mortgage Association, Pool BM5024, 3.000%, 11/1/2048 | 7,250 | |
10,727 | Federal National Mortgage Association, Pool BM5246, 3.500%, 11/1/2048 | 9,838 | |
12,934 | Federal National Mortgage Association, Pool CA0833, 3.500%, 12/1/2047 | 11,866 | |
9,825 | Federal National Mortgage Association, Pool CA4427, 3.000%, 10/1/2049 | 8,630 |
Shares or Principal Amount | Value | ||
MORTGAGE-BACKED SECURITIES— continued | |||
Federal National Mortgage Association— continued | |||
$ 7,451 | Federal National Mortgage Association, Pool FM0008, 3.500%, 8/1/2049 | $ 6,838 | |
21,316 | Federal National Mortgage Association, Pool FM1000, 3.000%, 4/1/2047 | 19,000 | |
9,721 | Federal National Mortgage Association, Pool FM1221, 3.500%, 7/1/2049 | 8,939 | |
15,358 | Federal National Mortgage Association, Pool MA0500, 5.000%, 8/1/2040 | 15,392 | |
18,167 | Federal National Mortgage Association, Pool MA0666, 4.500%, 3/1/2041 | 17,816 | |
21,952 | Federal National Mortgage Association, Pool MA1430, 3.000%, 5/1/2043 | 19,783 | |
21,176 | Federal National Mortgage Association, Pool MA2803, 2.500%, 11/1/2031 | 19,717 | |
TOTAL | 280,604 | ||
Government National Mortgage Association— 0.0% | |||
12,531 | Government National Mortgage Association, Pool MA0625, 3.500%, 12/20/2042 | 11,744 | |
8,009 | Government National Mortgage Association, Pool MA1376, 4.000%, 10/20/2043 | 7,718 | |
TOTAL | 19,462 | ||
TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $348,452) | 319,701 | ||
GOVERNMENT AGENCY— 0.1% | |||
Federal National Mortgage Association— 0.1% | |||
250,000 | Federal National Mortgage Association Notes, 0.625%, 4/22/2025 (IDENTIFIED COST $249,820) | 231,617 | |
MUNICIPAL BOND— 0.0% | |||
30,000 | Texas State Transportation Commission - State Highway Fund, 5.178%, 4/1/2030 (IDENTIFIED COST $32,803) | 30,272 | |
EXCHANGE-TRADED FUNDS— 8.4% | |||
40,700 | iShares Core MSCI Emerging Markets ETF | 2,125,761 | |
196,000 | iShares MSCI EAFE ETF | 14,594,160 | |
Total Exchange-Traded Funds (IDENTIFIED COST $15,117,066) | 16,719,921 | ||
INVESTMENT COMPANIES— 16.5% | |||
1,339 | Bank Loan Core Fund | 11,640 | |
221,813 | Emerging Markets Core Fund | 1,790,027 | |
404,597 | Federated Hermes Government Obligations Fund, Premier Shares, 5.16%7 | 404,597 | |
2,602,708 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 5.32%7 | 2,602,447 | |
357,246 | High Yield Bond Core Fund | 1,929,131 | |
2,599,067 | Mortgage Core Fund | 21,650,227 | |
507,527 | Project and Trade Finance Core Fund | 4,440,858 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $35,150,846) | 32,828,927 | ||
TOTAL INVESTMENT IN SECURITIES—100.1% (IDENTIFIED COST $185,853,778)8 | 199,744,641 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.1)%9 | (254,313) | ||
TOTAL NET ASSETS—100% | $199,490,328 |
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized (Depreciation) |
Long Futures: | ||||
United States Treasury Notes 2-Year Long Futures | 70 | $14,212,188 | September 2023 | $(20,497) |
United States Treasury Notes 10-Year Long Futures | 21 | $2,339,531 | September 2023 | $(13,530) |
United States Treasury Notes 5-Year Long Futures | 52 | $5,554,656 | September 2023 | $(97,154) |
United States Treasury Long Bond Long Futures | 2 | $248,875 | September 2023 | $(3,926) |
Short Futures: | ||||
United States Treasury Notes 10-Year Ultra Short Futures | 17 | $1,988,734 | September 2023 | $(13,317) |
NET UNREALIZED DEPRECIATION ON FUTURES CONTRACTS | $(148,424) |
Affiliates | Value as of 7/31/2022 | Purchases at Cost | Proceeds from Sales |
Bank Loan Core Fund | $174,026 | $12,941 | $(170,000) |
Emerging Markets Core Fund | $2,048,880 | $2,350,630 | $(2,748,850) |
Federated Hermes Government Obligations Fund, Premier Shares* | $7,041,989 | $266,731,476 | $(273,368,868) |
Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | $21,788,196 | $49,174,509 | $(68,365,308) |
High Yield Bond Core Fund | $1,960,618 | $1,516,800 | $(1,480,900) |
Mortgage Core Fund | $15,133,883 | $12,978,274 | $(5,224,000) |
Project and Trade Finance Core Fund | $3,586,221 | $794,336 | $— |
TOTAL OF AFFILIATED TRANSACTIONS | $51,733,813 | $333,558,966 | $(351,357,926) |
Change in Unrealized Appreciation/ Depreciation | Net Realized Gain/ (Loss) | Value as of 7/31/2023 | Shares Held as of 7/31/2023 | Dividend Income |
$10,270 | $(15,597) | $11,640 | 1,339 | $13,719 |
$411,327 | $(271,960) | $1,790,027 | 221,813 | $189,662 |
$— | $— | $404,597 | 404,597 | $199,740 |
$480 | $4,570 | $2,602,447 | 2,602,708 | $494,738 |
$178,089 | $(245,476) | $1,929,131 | 357,246 | $128,066 |
$(1,055,963) | $(181,967) | $21,650,227 | 2,599,067 | $722,207 |
$60,301 | $— | $4,440,858 | 507,527 | $293,499 |
$(395,496) | $(710,430) | $32,828,927 | 6,694,297 | $2,041,631 |
* | 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 $186,750,556. |
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, 2023, in valuing the Fund’s assets carried at fair value:
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | $105,601,857 | $— | $— | $105,601,857 |
International | — | 2,477,277 | — | 2,477,277 |
Debt Securities: | ||||
Corporate Bonds | — | 23,841,534 | — | 23,841,534 |
U.S. Treasuries | — | 10,894,552 | — | 10,894,552 |
Asset-Backed Securities | — | 5,016,901 | — | 5,016,901 |
Commercial Mortgage-Backed Securities | — | 1,086,349 | — | 1,086,349 |
Collateralized Mortgage Obligations | — | 695,733 | — | 695,733 |
Mortgage-Backed Securities | — | 319,701 | — | 319,701 |
Government Agency | — | 231,617 | — | 231,617 |
Municipal Bond | — | 30,272 | — | 30,272 |
Exchange-Traded Funds | 16,719,921 | — | — | 16,719,921 |
Investment Companies1 | 28,388,069 | — | — | 32,828,927 |
TOTAL SECURITIES | $150,709,847 | $44,593,936 | $— | $199,744,641 |
Other Financial Instruments:2 | ||||
Liabilities | $(148,424) | $— | $— | $(148,424) |
TOTAL OTHER FINANCIAL INSTRUMENTS | $(148,424) | $— | $— | $(148,424) |
1 | As permitted by U.S. generally accepted accounting principles (GAAP), an Investment Company valued at $4,440,858 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 | |
FNMA | —Federal National Mortgage Association | |
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, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $19.57 | $23.18 | $19.59 | $18.71 | $19.59 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.28 | 0.16 | 0.16 | 0.19 | 0.25 |
Net realized and unrealized gain (loss) | 0.85 | (1.60) | 4.30 | 1.46 | 0.57 |
Total From Investment Operations | 1.13 | (1.44) | 4.46 | 1.65 | 0.82 |
Less Distributions: | |||||
Distributions from net investment income | (0.09) | (0.13) | (0.07) | (0.24) | (0.19) |
Distributions from net realized gain | (1.10) | (2.04) | (0.80) | (0.53) | (1.51) |
Total Distributions | (1.19) | (2.17) | (0.87) | (0.77) | (1.70) |
Net Asset Value, End of Period | $19.51 | $19.57 | $23.18 | $19.59 | $18.71 |
Total Return2 | 6.28% | (7.05)% | 23.31% | 9.08% | 5.28% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.31% | 1.30% | 1.31% | 1.31% | 1.31% |
Net investment income | 1.48% | 0.73% | 0.77% | 1.04% | 1.35% |
Expense waiver/reimbursement4 | 0.04% | 0.01% | 0.04% | 0.07% | 0.08% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $115,519 | $114,889 | $124,559 | $95,559 | $84,243 |
Portfolio turnover5 | 104% | 110% | 61% | 152% | 92% |
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 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $19.16 | $22.78 | $19.35 | $18.50 | $19.31 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.14 | (0.01) | 0.002 | 0.05 | 0.11 |
Net realized and unrealized gain (loss) | 0.82 | (1.57) | 4.23 | 1.43 | 0.59 |
Total From Investment Operations | 0.96 | (1.58) | 4.23 | 1.48 | 0.70 |
Less Distributions: | |||||
Distributions from net investment income | — | — | — | (0.10) | (0.00)2 |
Distributions from net realized gain | (1.10) | (2.04) | (0.80) | (0.53) | (1.51) |
Total Distributions | (1.10) | (2.04) | (0.80) | (0.63) | (1.51) |
Net Asset Value, End of Period | $19.02 | $19.16 | $22.78 | $19.35 | $18.50 |
Total Return3 | 5.45% | (7.76)% | 22.37% | 8.25% | 4.54% |
Ratios to Average Net Assets: | |||||
Net expenses4 | 2.10% | 2.06% | 2.06% | 2.06% | 2.06% |
Net investment income (loss) | 0.69% | (0.05)% | 0.01% | 0.29% | 0.60% |
Expense waiver/reimbursement5 | 0.01% | 0.01% | 0.05% | 0.09% | 0.10% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $11,890 | $13,503 | $16,941 | $15,043 | $15,492 |
Portfolio turnover6 | 104% | 110% | 61% | 152% | 92% |
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 (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
6 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $19.67 | $23.28 | $19.67 | $18.78 | $19.64 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.33 | 0.21 | 0.22 | 0.24 | 0.30 |
Net realized and unrealized gain (loss) | 0.86 | (1.60) | 4.30 | 1.46 | 0.58 |
Total From Investment Operations | 1.19 | (1.39) | 4.52 | 1.70 | 0.88 |
Less Distributions: | |||||
Distributions from net investment income | (0.14) | (0.18) | (0.11) | (0.28) | (0.23) |
Distributions from net realized gain | (1.10) | (2.04) | (0.80) | (0.53) | (1.51) |
Total Distributions | (1.24) | (2.22) | (0.91) | (0.81) | (1.74) |
Net Asset Value, End of Period | $19.62 | $19.67 | $23.28 | $19.67 | $18.78 |
Total Return2 | 6.57% | (6.82)% | 23.59% | 9.33% | 5.61% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.06% | 1.06% | 1.06% | 1.06% | 1.06% |
Net investment income | 1.74% | 0.97% | 1.02% | 1.29% | 1.62% |
Expense waiver/reimbursement4 | 0.04% | 0.01% | 0.04% | 0.07% | 0.08% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $69,433 | $65,157 | $73,997 | $54,440 | $53,035 |
Portfolio turnover5 | 104% | 110% | 61% | 152% | 92% |
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 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $19.63 | $23.24 | $19.61 | $18.74 | $19.62 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.32 | 0.22 | 0.22 | 0.24 | 0.27 |
Net realized and unrealized gain (loss) | 0.87 | (1.61) | 4.31 | 1.44 | 0.60 |
Total From Investment Operations | 1.19 | (1.39) | 4.53 | 1.68 | 0.87 |
Less Distributions: | |||||
Distributions from net investment income | (0.16) | (0.18) | (0.10) | (0.28) | (0.24) |
Distributions from net realized gain | (1.10) | (2.04) | (0.80) | (0.53) | (1.51) |
Total Distributions | (1.26) | (2.22) | (0.90) | (0.81) | (1.75) |
Net Asset Value, End of Period | $19.56 | $19.63 | $23.24 | $19.61 | $18.74 |
Total Return2 | 6.59% | (6.81)% | 23.70% | 9.26% | 5.56% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.04% | 1.01% | 1.05% | 1.05% | 1.05% |
Net investment income | 1.76% | 1.05% | 1.03% | 1.29% | 1.40% |
Expense waiver/reimbursement4 | 0.01% | 0.01% | 0.01% | 0.03% | 0.06% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $2,648 | $2,286 | $1,836 | $1,516 | $3,165 |
Portfolio turnover5 | 104% | 110% | 61% | 152% | 92% |
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 | Securities that mature are considered sales for purposes of this calculation. |
July 31, 2023
Assets: | |
Investment in securities, at value including $406,316 of securities loaned and $32,828,927 of investments in affiliated holdings* (identified cost $185,853,778, including $35,150,846 of identified cost in affiliated holdings) | $199,744,641 |
Income receivable | 436,291 |
Income receivable from affiliated holdings | 143,413 |
Receivable for investments sold | 451,381 |
Receivable for shares sold | 208,626 |
Receivable for variation margin on futures contracts | 7,747 |
Total Assets | 200,992,099 |
Liabilities: | |
Payable for investments purchased | 817,917 |
Payable for shares redeemed | 53,813 |
Payable to bank | 25,731 |
Payable for collateral due to broker for securities lending (Note 2) | 404,597 |
Payable for investment adviser fee (Note 5) | 4,077 |
Payable for administrative fee (Note 5) | 424 |
Payable for auditing fees | 36,530 |
Payable for share registration costs | 18,633 |
Payable for transfer agent fees (Note 2) | 31,403 |
Payable for distribution services fee (Note 5) | 7,467 |
Payable for other service fees (Notes 2 and 5) | 51,108 |
Accrued expenses (Note 5) | 50,071 |
Total Liabilities | 1,501,771 |
Net assets for 10,219,881 shares outstanding | $199,490,328 |
Net Assets Consist of: | |
Paid-in capital | $185,780,260 |
Total distributable earnings (loss) | 13,710,068 |
Total Net Assets | $199,490,328 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($115,519,121 ÷ 5,920,275 shares outstanding), no par value, unlimited shares authorized | $19.51 |
Offering price per share (100/94.50 of $19.51) | $20.65 |
Redemption proceeds per share | $19.51 |
Class C Shares: | |
Net asset value per share ($11,890,143 ÷ 625,035 shares outstanding), no par value, unlimited shares authorized | $19.02 |
Offering price per share | $19.02 |
Redemption proceeds per share (99.00/100 of $19.02) | $18.83 |
Institutional Shares: | |
Net asset value per share ($69,433,045 ÷ 3,539,200 shares outstanding), no par value, unlimited shares authorized | $19.62 |
Offering price per share | $19.62 |
Redemption proceeds per share | $19.62 |
Class R6 Shares: | |
Net asset value per share ($2,648,019 ÷ 135,371 shares outstanding), no par value, unlimited shares authorized | $19.56 |
Offering price per share | $19.56 |
Redemption proceeds per share | $19.56 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31, 2023
Investment Income: | |
Dividends (including $1,841,891 received from affiliated holdings* and net of foreign taxes withheld of $100) | $3,781,982 |
Interest | 1,636,880 |
Net income on securities loaned (includes $199,740 earned from an affiliated holding related to cash collateral balances*) (Note 2) | 10,532 |
TOTAL INCOME | 5,429,394 |
Expenses: | |
Investment adviser fee (Note 5) | 1,454,734 |
Administrative fee (Note 5) | 157,526 |
Custodian fees | 53,250 |
Transfer agent fees (Note 2) | 196,953 |
Directors’/Trustees’ fees (Note 5) | 2,454 |
Auditing fees | 38,730 |
Legal fees | 12,462 |
Portfolio accounting fees | 108,072 |
Distribution services fee (Note 5) | 91,890 |
Other service fees (Notes 2 and 5) | 300,649 |
Share registration costs | 67,641 |
Printing and postage | 28,168 |
Miscellaneous (Note 5) | 31,680 |
TOTAL EXPENSES | 2,544,209 |
Waiver and Reimbursements: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (16,678) |
Reimbursement of other operating expenses (Notes 2 and 5) | (55,373) |
TOTAL WAIVER AND REIMBURSEMENTS | (72,051) |
Net expenses | 2,472,158 |
Net investment income | 2,957,236 |
Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions and Futures Contracts: | |
Net realized gain on investments (including net realized loss of $(710,430) on sales of investments in affiliated holdings*) | $663,874 |
Net realized loss on futures contracts | (489,711) |
Net change in unrealized appreciation of investments (including net change in unrealized depreciation of $(395,496) on investments in affiliated holdings*) | 9,037,679 |
Net change in unrealized appreciation/depreciation of translation of assets and liabilities in foreign currency | 99 |
Net change in unrealized depreciation of futures contracts | (142,706) |
Net realized and unrealized gain (loss) on investments, foreign currency transactions and futures contracts | 9,069,235 |
Change in net assets resulting from operations | $12,026,471 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31 | 2023 | 2022 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $2,957,236 | $1,611,997 |
Net realized gain (loss) | 174,163 | 15,639,630 |
Net change in unrealized appreciation/depreciation | 8,895,072 | (32,815,373) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 12,026,471 | (15,563,746) |
Distributions to Shareholders: | ||
Class A Shares | (6,948,203) | (11,860,120) |
Class C Shares | (731,258) | (1,532,399) |
Institutional Shares | (4,265,616) | (7,174,769) |
Class R6 Shares | (142,729) | (217,778) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (12,087,806) | (20,785,066) |
Share Transactions: | ||
Proceeds from sale of shares | 39,221,885 | 32,654,133 |
Net asset value of shares issued to shareholders in payment of distributions declared | 11,678,828 | 19,978,864 |
Cost of shares redeemed | (47,183,872) | (37,782,492) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 3,716,841 | 14,850,505 |
Change in net assets | 3,655,506 | (21,498,307) |
Net Assets: | ||
Beginning of period | 195,834,822 | 217,333,129 |
End of period | $199,490,328 | $195,834,822 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $115,527 | $(31,322) |
Class C Shares | 12,696 | (460) |
Institutional Shares | 67,669 | (23,591) |
Class R6 Shares | 1,061 | — |
TOTAL | $196,953 | $(55,373) |
Other Service Fees Incurred | |
Class A Shares | $270,091 |
Class C Shares | 30,558 |
TOTAL | $300,649 |
Fair Value of Securities Loaned | Collateral Received |
$406,316 | $404,597 |
Fair Value of Derivative Instruments | ||
Assets | ||
Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||
Interest rate contracts | Receivable for variation margin on futures contracts | $(148,424)* |
* | 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 | $(489,711) |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |
Futures Contracts | |
Interest rate contracts | $(142,706) |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 749,068 | $13,965,347 | 857,601 | $18,515,772 |
Shares issued to shareholders in payment of distributions declared | 364,911 | 6,649,533 | 521,906 | 11,255,032 |
Shares redeemed | (1,064,941) | (19,945,102) | (882,053) | (18,462,673) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 49,038 | $669,778 | 497,454 | $11,308,131 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 111,329 | $2,045,388 | 109,522 | $2,394,823 |
Shares issued to shareholders in payment of distributions declared | 39,420 | 701,784 | 69,335 | 1,460,199 |
Shares redeemed | (230,468) | (4,232,820) | (217,756) | (4,550,083) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (79,719) | $(1,485,648) | (38,899) | $(695,061) |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,170,072 | $21,950,726 | 471,410 | $10,255,976 |
Shares issued to shareholders in payment of distributions declared | 228,391 | 4,184,790 | 324,794 | 7,045,867 |
Shares redeemed | (1,171,973) | (21,958,960) | (661,677) | (13,914,894) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 226,490 | $4,176,556 | 134,527 | $3,386,949 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 67,256 | $1,260,424 | 68,781 | $1,487,562 |
Shares issued to shareholders in payment of distributions declared | 7,809 | 142,721 | 10,056 | 217,766 |
Shares redeemed | (56,135) | (1,046,990) | (41,430) | (854,842) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | 18,930 | $356,155 | 37,407 | $850,486 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 214,739 | $3,716,841 | 630,489 | $14,850,505 |
Increase (Decrease) | |
Paid-In Capital | Total Distributable Earnings (Loss) |
$(7,321) | $7,321 |
2023 | 2022 | |
Ordinary income1 | $1,051,454 | $9,557,979 |
Long-term capital gains | $11,036,352 | $11,227,087 |
1 | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Undistributed ordinary income | $1,902,687 |
Net unrealized appreciation | $12,994,085 |
Capital loss carryforwards and deferrals | $(1,186,623) |
Other temporary differences | $(81) |
TOTAL | $13,710,068 |
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 | $91,890 |
Purchases | $180,834,307 |
Sales | $162,557,314 |
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/ernstyoungsig.jpg)
September 25, 2023
Beginning Account Value 2/1/2023 | Ending Account Value 7/31/2023 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,029.00 | $6.59 |
Class C Shares | $1,000 | $1,024.80 | $10.54 |
Institutional Shares | $1,000 | $1,030.50 | $5.34 |
Class R6 Shares | $1,000 | $1,030.60 | $5.24 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,018.30 | $6.56 |
Class C Shares | $1,000 | $1,014.38 | $10.49 |
Institutional Shares | $1,000 | $1,019.54 | $5.31 |
Class R6 Shares | $1,000 | $1,019.64 | $5.21 |
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 | 2.10% |
Institutional Shares | 1.06% |
Class R6 Shares | 1.04% |
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; Director and 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, and Federated MDTA LLC; Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and CEO of Passport Research, Ltd.; Director 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: 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.; Lead Director, Member of the Audit and Nominating and Corporate Governance Committees, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 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 (natural gas). 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 Associate General Secretary of the Diocese of Pittsburgh, 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 (natural gas). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint Francis University. |
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. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber); and Director, The Golisano Children’s Museum of Naples, Florida. |
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; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors, Duquesne University (Retired). Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors and 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. Ms. Reilly currently serves as a member of the Board of Directors of UPMC Mercy 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 |
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; 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). |
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. |
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. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
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/0001623632-23-001324/edelivery.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/fhilogok11p.jpg)
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/0001623632-23-001324/fscbug_small.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/img2b9abbee1.gif)
Share Class | Ticker | A | QALGX | C | QCLGX | Institutional | QILGX |
Federated Hermes MDT Large Cap Growth Fund
A Portfolio of Federated Hermes MDT Series
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/donahuechrissigsmall.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/fmlcgar37329.jpg)
1 Year | 5 Years | 10 Years | |
Class A Shares | 12.03% | 14.24% | 13.63% |
Class C Shares | 16.70% | 14.69% | 13.60% |
Institutional Shares | 18.88% | 15.83% | 14.56% |
R1000G | 17.31% | 15.24% | 15.53% |
MLGFA | 14.47% | 11.64% | 12.78% |
Sector Composition | Percentage of Total Net Assets |
Information Technology | 42.3% |
Consumer Discretionary | 14.6% |
Health Care | 11.6% |
Communication Services | 10.0% |
Financials | 7.0% |
Industrials | 6.4% |
Consumer Staples | 4.7% |
Real Estate | 0.5% |
Materials | 0.3% |
Energy | 0.2% |
Cash Equivalents2 | 2.2% |
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. |
3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares | Value | ||
COMMON STOCKS— 97.6% | |||
1 | Communication Services— 10.0% | ||
213,494 | Alphabet, Inc., Class A | $ 28,334,924 | |
56,650 | Match Group, Inc. | 2,634,792 | |
42,357 | Meta Platforms, Inc. | 13,494,940 | |
9,350 | Netflix, Inc. | 4,104,369 | |
62,822 | Spotify Technology SA | 9,386,235 | |
23,587 | Trade Desk, Inc./The | 2,152,550 | |
TOTAL | 60,107,810 | ||
Consumer Discretionary— 14.6% | |||
51,938 | 1 | Airbnb, Inc. | 7,904,444 |
156,610 | 1 | Amazon.com, Inc. | 20,935,625 |
31,525 | 1 | Bright Horizons Family Solutions, Inc. | 3,058,871 |
2,267 | 1 | Chipotle Mexican Grill, Inc. | 4,448,489 |
42,338 | 1 | DoorDash, Inc. | 3,843,867 |
45,415 | eBay, Inc. | 2,021,422 | |
65,748 | 1 | Expedia Group, Inc. | 8,056,102 |
16,326 | Genuine Parts Co. | 2,542,285 | |
4,724 | 1 | Lululemon Athletica, Inc. | 1,788,176 |
29,290 | Nike, Inc., Class B | 3,233,323 | |
3,705 | 1 | O’Reilly Automotive, Inc. | 3,430,052 |
16,632 | 1 | Royal Caribbean Cruises, Ltd. | 1,814,717 |
27,454 | Starbucks Corp. | 2,788,503 | |
44,060 | 1 | Tesla, Inc. | 11,782,966 |
11,352 | Tractor Supply Co. | 2,542,734 | |
11,368 | 1 | Ulta Beauty, Inc. | 5,056,486 |
3,779 | Wingstop, Inc. | 637,064 | |
12,631 | Yum! Brands, Inc. | 1,738,910 | |
TOTAL | 87,624,036 | ||
Consumer Staples— 4.7% | |||
6,666 | Costco Wholesale Corp. | 3,737,426 | |
15,724 | Hershey Foods Corp. | 3,637,118 | |
59,556 | Lamb Weston Holdings, Inc. | 6,171,788 | |
65,082 | PepsiCo, Inc. | 12,200,272 | |
14,716 | Procter & Gamble Co. | 2,300,111 | |
TOTAL | 28,046,715 | ||
Energy— 0.2% | |||
5,450 | Cheniere Energy, Inc. | 882,137 | |
15,285 | Ovintiv, Inc. | 704,486 | |
TOTAL | 1,586,623 | ||
Financials— 7.0% | |||
14,773 | Ameriprise Financial, Inc. | 5,147,652 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Financials— continued | |||
4,359 | Gallagher (Arthur J.) & Co. | $ 936,313 | |
4,068 | Marketaxess Holdings, Inc. | 1,095,187 | |
5,307 | Marsh & McLennan Cos., Inc. | 999,945 | |
22,158 | Mastercard, Inc. | 8,736,456 | |
2,821 | MSCI, Inc., Class A | 1,546,134 | |
56,010 | 1 | PayPal Holdings, Inc. | 4,246,678 |
26,057 | Progressive Corp., OH | 3,282,661 | |
88,060 | 1 | StoneCo Ltd. | 1,275,989 |
62,337 | Visa, Inc., Class A | 14,819,375 | |
TOTAL | 42,086,390 | ||
Health Care— 11.6% | |||
57,955 | AbbVie, Inc. | 8,668,909 | |
72,902 | Baxter International, Inc. | 3,297,357 | |
10,044 | 1 | Edwards Lifesciences Corp. | 824,311 |
5,914 | Elevance Health, Inc. | 2,789,220 | |
31,090 | Eli Lilly & Co. | 14,131,960 | |
30,634 | 1 | GE HealthCare Technologies, Inc. | 2,389,452 |
12,457 | Humana, Inc. | 5,690,731 | |
54,281 | 1 | Incyte Genomics, Inc. | 3,458,785 |
10,097 | McKesson Corp. | 4,063,033 | |
52,025 | Merck & Co., Inc. | 5,548,466 | |
4,481 | 1 | Molina Healthcare, Inc. | 1,364,420 |
250,961 | 1 | Teladoc Health, Inc. | 7,471,109 |
5,799 | The Cigna Group | 1,711,285 | |
5,466 | UnitedHealth Group, Inc. | 2,767,818 | |
10,972 | 1 | Vertex Pharmaceuticals, Inc. | 3,865,875 |
7,981 | Zoetis, Inc. | 1,501,146 | |
TOTAL | 69,543,877 | ||
Industrials— 6.4% | |||
64,022 | Allison Transmission Holdings, Inc. | 3,757,451 | |
13,748 | Booz Allen Hamilton Holding Corp. | 1,664,608 | |
8,141 | Caterpillar, Inc. | 2,158,749 | |
21,818 | 1 | Ceridian HCM Holding, Inc. | 1,544,933 |
2,262 | Lockheed Martin Corp. | 1,009,689 | |
38,346 | Paychex, Inc. | 4,811,273 | |
2,979 | Rockwell Automation, Inc. | 1,001,808 | |
23,500 | Trane Technologies PLC | 4,686,840 | |
29,040 | 1 | Trex Co., Inc. | 2,007,826 |
71,475 | 1 | Uber Technologies, Inc. | 3,535,153 |
16,907 | Verisk Analytics, Inc. | 3,870,688 | |
14,511 | 1 | Willscot Corp. | 695,802 |
50,771 | 1 | XPO, Inc. | 3,515,384 |
36,051 | Xylem, Inc. | 4,064,750 | |
TOTAL | 38,324,954 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Information Technology— 42.3% | |||
6,814 | Accenture PLC | $ 2,155,609 | |
19,331 | 1 | Adobe, Inc. | 10,558,012 |
2,735 | 1 | Ansys, Inc. | 935,644 |
341,983 | Apple, Inc. | 67,182,560 | |
18,866 | 1 | Arista Networks, Inc. | 2,925,928 |
16,985 | Broadcom, Inc. | 15,263,570 | |
27,917 | 1 | Cadence Design Systems, Inc. | 6,532,857 |
27,159 | 1 | Confluent, Inc. | 938,072 |
64,757 | Dell Technologies, Inc. | 3,426,940 | |
117,262 | 1 | Fortinet, Inc. | 9,113,603 |
7,395 | 1 | HubSpot, Inc. | 4,293,167 |
28,885 | Jabil, Inc. | 3,196,703 | |
40,442 | Microchip Technology, Inc. | 3,799,121 | |
170,919 | Microsoft Corp. | 57,415,110 | |
7,615 | NetApp, Inc. | 594,046 | |
69,709 | 1 | Nutanix, Inc. | 2,105,212 |
56,353 | NVIDIA Corp. | 26,333,193 | |
37,633 | 1 | Palo Alto Networks, Inc. | 9,406,745 |
89,937 | Pegasystems, Inc. | 4,744,177 | |
74,971 | 1 | Pure Storage, Inc. | 2,773,177 |
17,551 | 1 | Salesforce, Inc. | 3,949,151 |
9,454 | 1 | ServiceNow, Inc. | 5,511,682 |
7,657 | 1 | Synopsys, Inc. | 3,459,433 |
11,839 | 1 | Workday, Inc. | 2,807,382 |
70,293 | 1 | Zoom Video Communications, Inc. | 5,155,992 |
TOTAL | 254,577,086 | ||
Materials— 0.3% | |||
14,951 | Steel Dynamics, Inc. | 1,593,478 | |
Real Estate— 0.5% | |||
9,594 | Crown Castle, Inc. | 1,038,934 | |
600 | Equinix, Inc. | 485,952 | |
5,280 | Public Storage | 1,487,640 | |
TOTAL | 3,012,526 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $453,920,008) | 586,503,495 | ||
INVESTMENT COMPANY— 2.2% | |||
13,299,247 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 5.32%2 (IDENTIFIED COST $13,296,768) | $13,297,917 | |
TOTAL INVESTMENT IN SECURITIES—99.8% (IDENTIFIED COST $467,216,776)3 | 599,801,412 | ||
OTHER ASSETS AND LIABILITIES - NET—0.2%4 | 1,395,570 | ||
TOTAL NET ASSETS—100% | $601,196,982 |
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | Total of Affiliated Transactions | |
Value as of 7/31/2022 | $— | $1,375,258 | $1,375,258 |
Purchases at Cost | $7,434,779 | $208,578,580 | $216,013,359 |
Proceeds from Sales | $(7,434,779) | $(196,658,151) | $(204,092,930) |
Change in Unrealized Appreciation/ Depreciation | $— | $1,149 | $1,149 |
Net Realized Gain/(Loss) | $— | $1,081 | $1,081 |
Value as of 7/31/2023 | $— | $13,297,917 | $13,297,917 |
Shares Held as of 7/31/2023 | — | 13,299,247 | 13,299,247 |
Dividend Income | $13,654 | $410,022 | $423,676 |
* | 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 $472,853,901. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $23.32 | $31.22 | $25.03 | $20.81 | $20.66 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.01 | (0.08) | (0.07) | (0.04) | (0.05) |
Net realized and unrealized gain (loss) | 3.59 | (1.89) | 8.36 | 5.37 | 2.01 |
Total From Investment Operations | 3.60 | (1.97) | 8.29 | 5.33 | 1.96 |
Less Distributions: | |||||
Distributions from net realized gain | (2.75) | (5.93) | (2.10) | (1.11) | (1.81) |
Net Asset Value, End of Period | $24.17 | $23.32 | $31.22 | $25.03 | $20.81 |
Total Return2 | 18.56% | (8.93)% | 35.00% | 26.91% | 11.28% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.99% | 0.99% | 0.99% | 1.11% | 1.48% |
Net investment income (loss) | 0.03% | (0.30)% | (0.27)% | (0.19)% | (0.27)% |
Expense waiver/reimbursement4 | 0.29% | 0.33% | 0.38% | 0.30% | 0.00%5 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $146,478 | $106,863 | $123,486 | $93,740 | $67,513 |
Portfolio turnover6 | 116% | 147% | 39% | 220% | 97% |
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%. |
6 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $18.56 | $26.16 | $21.43 | $18.10 | $18.35 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.12) | (0.23) | (0.23) | (0.17) | (0.18) |
Net realized and unrealized gain (loss) | 2.69 | (1.44) | 7.06 | 4.61 | 1.74 |
Total From Investment Operations | 2.57 | (1.67) | 6.83 | 4.44 | 1.56 |
Less Distributions: | |||||
Distributions from net realized gain | (2.75) | (5.93) | (2.10) | (1.11) | (1.81) |
Net Asset Value, End of Period | $18.38 | $18.56 | $26.16 | $21.43 | $18.10 |
Total Return2 | 17.69% | (9.60)% | 34.01% | 25.99% | 10.46% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.74% | 1.74% | 1.74% | 1.88% | 2.23% |
Net investment income (loss) | (0.73)% | (1.05)% | (1.02)% | (0.95)% | (1.03)% |
Expense waiver/reimbursement4 | 0.29% | 0.33% | 0.38% | 0.29% | 0.00%5 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $20,413 | $14,743 | $17,671 | $14,536 | $12,445 |
Portfolio turnover6 | 116% | 147% | 39% | 220% | 97% |
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%. |
6 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $25.13 | $33.14 | $26.39 | $21.83 | $21.52 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.06 | (0.01) | 0.002 | 0.03 | (0.01) |
Net realized and unrealized gain (loss) | 3.95 | (2.07) | 8.85 | 5.64 | 2.13 |
Total From Investment Operations | 4.01 | (2.08) | 8.85 | 5.67 | 2.12 |
Less Distributions: | |||||
Distributions from net realized gain | (2.75) | (5.93) | (2.10) | (1.11) | (1.81) |
Net Asset Value, End of Period | $26.39 | $25.13 | $33.14 | $26.39 | $21.83 |
Total Return3 | 18.88% | (8.72)% | 35.33% | 27.22% | 11.59% |
Ratios to Average Net Assets: | |||||
Net expenses4 | 0.74% | 0.74% | 0.74% | 0.81% | 1.22% |
Net investment income (loss) | 0.24% | (0.04)% | 0.01% | 0.13% | (0.04)% |
Expense waiver/reimbursement5 | 0.28% | 0.33% | 0.37% | 0.34% | 0.00%6 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $434,306 | $74,192 | $53,631 | $90,113 | $37,076 |
Portfolio turnover7 | 116% | 147% | 39% | 220% | 97% |
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%. |
7 | Securities that mature are considered sales for purposes of this calculation. |
July 31, 2023
Assets: | |
Investment in securities, at value including $13,297,917 of investments in affiliated holdings* (identified cost $467,216,776, including $13,296,768 of identified cost in affiliated holdings) | $599,801,412 |
Income receivable | 125,272 |
Income receivable from affiliated holdings | 74,197 |
Receivable for investments sold | 4,002,988 |
Receivable for shares sold | 2,777,102 |
Total Assets | 606,780,971 |
Liabilities: | |
Payable for investments purchased | 5,176,253 |
Payable for shares redeemed | 227,610 |
Payable to bank | 5,726 |
Payable for investment adviser fee (Note 5) | 8,608 |
Payable for administrative fee (Note 5) | 1,275 |
Payable for distribution services fee (Note 5) | 12,457 |
Payable for other service fees (Notes 2 and 5) | 60,223 |
Accrued expenses (Note 5) | 91,837 |
Total Liabilities | 5,583,989 |
Net assets for 23,629,227 shares outstanding | $601,196,982 |
Net Assets Consist of: | |
Paid-in capital | $462,596,979 |
Total distributable earnings (loss) | 138,600,003 |
Total Net Assets | $601,196,982 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($146,477,684 ÷ 6,060,243 shares outstanding), no par value, unlimited shares authorized | $24.17 |
Offering price per share (100/94.50 of $24.17) | $25.58 |
Redemption proceeds per share | $24.17 |
Class C Shares: | |
Net asset value per share ($20,413,206 ÷ 1,110,687 shares outstanding), no par value, unlimited shares authorized | $18.38 |
Offering price per share | $18.38 |
Redemption proceeds per share (99.00/100 of $18.38) | $18.20 |
Institutional Shares: | |
Net asset value per share ($434,306,092 ÷ 16,458,297 shares outstanding), no par value, unlimited shares authorized | $26.39 |
Offering price per share | $26.39 |
Redemption proceeds per share | $26.39 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31, 2023
Investment Income: | |
Dividends (including $410,022 received from affiliated holdings*) | $3,225,500 |
Net income on securities loaned (includes $13,654 earned from affiliated holdings related to cash collateral balances) (Note 2) | 452 |
TOTAL INCOME | 3,225,952 |
Expenses: | |
Investment adviser fee (Note 5) | 2,424,960 |
Administrative fee (Note 5) | 253,808 |
Custodian fees | 39,511 |
Transfer agent fees | 296,986 |
Directors’/Trustees’ fees (Note 5) | 2,675 |
Auditing fees | 29,500 |
Legal fees | 11,666 |
Portfolio accounting fees | 104,267 |
Distribution services fee (Note 5) | 122,931 |
Other service fees (Notes 2 and 5) | 318,701 |
Share registration costs | 98,472 |
Printing and postage | 32,856 |
Miscellaneous (Note 5) | 29,889 |
TOTAL EXPENSES | 3,766,222 |
Waiver/reimbursement of investment adviser fee (Note 5) | (916,121) |
Net expenses | 2,850,101 |
Net investment income (loss) | 375,851 |
Realized and Unrealized Gain (Loss) on Investments: | |
Net realized gain on investments (including net realized gain of $1,081 on sales of investments in affiliated holdings*) | 10,258,501 |
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $1,149 on investments in affiliated holdings*) | 74,612,976 |
Net realized and unrealized gain (loss) on investments | 84,871,477 |
Change in net assets resulting from operations | $85,247,328 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31 | 2023 | 2022 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income (loss) | $375,851 | $(608,684) |
Net realized gain (loss) | 10,258,501 | 28,856,119 |
Net change in unrealized appreciation/depreciation | 74,612,976 | (46,674,094) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 85,247,328 | (18,426,659) |
Distributions to Shareholders: | ||
Class A Shares | (12,198,895) | (23,366,731) |
Class B Shares1 | (446,127) | (1,547,488) |
Class C Shares | (2,054,902) | (3,760,356) |
Institutional Shares | (10,905,464) | (9,192,433) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (25,605,388) | (37,867,008) |
Share Transactions: | ||
Proceeds from sale of shares | 380,258,801 | 68,545,728 |
Proceeds from shares issued in connection with the tax-free transfer of assets from Stockyard | 22,220,471 | — |
Net asset value of shares issued to shareholders in payment of distributions declared | 24,565,868 | 35,506,205 |
Cost of shares redeemed | (85,224,260) | (51,044,887) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 341,820,880 | 53,007,046 |
Change in net assets | 401,462,820 | (3,286,621) |
Net Assets: | ||
Beginning of period | 199,734,162 | 203,020,783 |
End of period | $601,196,982 | $199,734,162 |
1 | On February 3, 2023, Class B Shares were converted into Class A Shares. |
Shares of the Fund Issued | Stockyard Net Assets Received | Unrealized Appreciation1 | Net Assets of the Fund Immediately Prior to Acquisition | Net Assets of the Fund Immediately After Acquisition |
850,382 | $22,220,471 | $15,718,983 | $552,127,405 | $574,347,876 |
1 | Unrealized Appreciation is included in the Net Assets Received amount shown above. |
Other Service Fees Incurred | |
Class A Shares | $277,724 |
Class B Shares | 4,086 |
Class C Shares | 36,891 |
TOTAL | $318,701 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,707,871 | $36,312,723 | 523,985 | $13,963,185 |
Shares issued to shareholders in payment of distributions declared | 601,155 | 11,500,103 | 799,548 | 21,619,784 |
Conversion of Class B Shares to Class A Shares1 | 140,105 | 2,947,814 | — | — |
Shares redeemed | (971,301) | (20,608,520) | (696,318) | (18,045,455) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 1,477,830 | $30,152,120 | 627,215 | $17,537,514 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Class B Shares: | Shares | Amount | Shares | Amount |
Shares sold | — | $— | 4,791 | $96,048 |
Shares issued to shareholders in payment of distributions declared | 28,540 | 439,513 | 65,284 | 1,475,427 |
Conversion of Class B Shares to Class A Shares1 | (174,227) | (2,947,814) | — | — |
Shares redeemed | (57,207) | (1,004,793) | (171,100) | (3,842,107) |
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS | (202,894) | $(3,513,094) | (101,025) | $(2,270,632) |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 395,504 | $6,618,577 | 148,016 | $3,144,716 |
Shares issued to shareholders in payment of distributions declared | 140,427 | 2,051,638 | 173,682 | 3,755,009 |
Shares redeemed | (219,750) | (3,633,682) | (202,776) | (4,403,692) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | 316,181 | $5,036,533 | 118,922 | $2,496,033 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 14,591,941 | $334,379,687 | 1,975,979 | $51,341,779 |
Proceeds from shares issued in connection with the tax-free transfer of assets from Stockyard | 850,382 | 22,220,471 | — | — |
Shares issued to shareholders in payment of distributions declared | 507,176 | 10,574,614 | 297,559 | 8,655,985 |
Shares redeemed | (2,443,461) | (57,029,451) | (939,818) | (24,753,633) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 13,506,038 | $310,145,321 | 1,333,720 | $35,244,131 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 15,097,155 | $341,820,880 | 1,978,832 | $53,007,046 |
1 | On February 3, 2023, Class B Shares were converted to Class A Shares. Within the Statement of Changes in Net Assets, the conversion from Class B Shares is within the Cost of shares redeemed and the conversion to Class A Shares is within Proceeds from sale of shares. |
2023 | 2022 | |
Ordinary income1 | $— | $19,066,352 |
Long-term capital gains | $25,605,388 | $18,800,656 |
1 | For tax purposes, short-term capital gains distributions are considered ordinary income distributions. |
Undistributed ordinary income | $87,763 |
Net unrealized appreciation | $126,947,511 |
Undistributed long-term capital gains | $11,564,729 |
TOTAL | $138,600,003 |
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 B Shares | $12,257 |
Class C Shares | 110,674 |
TOTAL | $122,931 |
Purchases | $658,818,409 |
Sales | $374,980,287 |
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/ernstyoungsig.jpg)
September 27, 2023
Beginning Account Value 2/1/2023 | Ending Account Value 7/31/2023 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,180.20 | $5.35 |
Class C Shares | $1,000 | $1,175.90 | $9.39 |
Institutional Shares | $1,000 | $1,181.80 | $4.00 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,019.89 | $4.96 |
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 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; Director and 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, and Federated MDTA LLC; Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and CEO of Passport Research, Ltd.; Director 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: 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.; Lead Director, Member of the Audit and Nominating and Corporate Governance Committees, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 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 (natural gas). 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 Associate General Secretary of the Diocese of Pittsburgh, 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 (natural gas). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint Francis University. |
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. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber); and Director, The Golisano Children’s Museum of Naples, Florida. |
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; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors, Duquesne University (Retired). Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors and 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. Ms. Reilly currently serves as a member of the Board of Directors of UPMC Mercy 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 |
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; 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). |
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. |
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. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
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/0001623632-23-001324/edelivery.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/fhilogok11p.jpg)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31421R809
CUSIP 31421R882
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/fscbug_small.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/img79e6ad371.gif)
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/0001623632-23-001324/donahuechrissigsmall.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/fmsccar37328.jpg)
1 Year | 5 Years | 10 Years | |
Class A Shares | 0.37% | 3.39% | 8.63% |
Class C Shares | 4.35% | 3.76% | 8.60% |
Institutional Shares | 6.47% | 4.83% | 9.53% |
Class R6 Shares4 | 6.47% | 4.84% | 9.46% |
R2000 | 7.91% | 5.09% | 8.17% |
MSBFA | 7.81% | 5.90% | 8.13% |
Sector Composition | Percentage of Total Net Assets |
Industrials | 17.3% |
Health Care | 16.2% |
Financials | 14.7% |
Information Technology | 12.4% |
Consumer Discretionary | 10.9% |
Energy | 8.2% |
Real Estate | 5.4% |
Consumer Staples | 4.4% |
Materials | 3.8% |
Communication Services | 2.4% |
Utilities | 2.3% |
Securities Lending Collateral2 | 2.5% |
Cash Equivalents3 | 0.8% |
Other Assets and Liabilities—Net4 | (1.3)% |
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— 98.0% | |||
Communication Services— 2.4% | |||
214,287 | 1 | AMC Networks, Inc. | $ 2,704,302 |
39,176 | 1 | Atlanta Braves Holdings, Inc. | 1,595,247 |
221,489 | 1 | CarGurus, Inc. | 5,018,941 |
313,960 | 1 | Cinemark Holdings, Inc. | 5,239,992 |
405,549 | 1 | Eventbrite, Inc. | 4,667,869 |
134,647 | Gray Television, Inc. | 1,275,107 | |
1,104,805 | 1 | iHeartMedia, Inc. | 5,225,728 |
151,617 | 2 | Lumen Technologies, Inc. | 271,394 |
419,844 | 1 | Vimeo Holdings, Inc. | 1,729,757 |
TOTAL | 27,728,337 | ||
Consumer Discretionary— 10.9% | |||
409,891 | 1 | 2U, Inc. | 1,959,279 |
243,417 | 1 | Abercrombie & Fitch Co., Class A | 9,641,747 |
65,080 | Big Lots, Inc. | 667,070 | |
108,580 | Bloomin Brands, Inc. | 2,917,545 | |
22,937 | Camping World Holdings, Inc. | 734,672 | |
94,149 | 1 | Chegg, Inc. | 953,729 |
1,003,788 | Clarus Corp. | 8,933,713 | |
180,173 | 1,2 | ContextLogic, Inc. | 1,711,644 |
48,566 | 1 | Duolingo, Inc. | 7,536,958 |
389,225 | 1 | Goodyear Tire & Rubber Co. | 6,258,738 |
297,956 | 1 | GoPro, Inc. | 1,218,640 |
241,739 | 1,2 | Groupon, Inc. | 1,909,738 |
133,870 | 1 | Inspired Entertainment, Inc. | 1,685,423 |
86,232 | International Game Technology PLC | 2,917,229 | |
143,920 | 1 | Lumber Liquidators, Inc. | 565,606 |
31,893 | 1 | MCBC Holdings, Inc. | 977,520 |
88,475 | Murphy USA, Inc. | 27,164,479 | |
9,840 | 1 | ODP Corp./The | 490,819 |
767,214 | 1 | Qurate Retail, Inc. | 782,558 |
211,645 | 1,2 | Red Robin Gourmet Burgers | 3,079,435 |
23,877 | Red Rock Resorts, Inc. | 1,158,035 | |
840,886 | 1 | Rush Street Interactive, Inc. | 3,220,593 |
85,074 | 1 | Sally Beauty Holdings, Inc. | 1,018,336 |
14,721 | 1 | Shake Shack, Inc. | 1,143,233 |
18,313 | 1 | Taylor Morrison Home Corp. | 886,715 |
101,990 | Texas Roadhouse, Inc. | 11,376,985 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Consumer Discretionary— continued | |||
197,048 | Upbound Group, Inc. | $ 6,823,772 | |
9,261 | 1 | Visteon Corp. | 1,427,027 |
169,446 | Waterstone Financial, Inc. | 2,363,772 | |
49,843 | Wingstop, Inc. | 8,402,533 | |
17,332 | Winnebago Industries, Inc. | 1,192,442 | |
443,689 | 1,2 | WW International, Inc. | 5,168,977 |
TOTAL | 126,288,962 | ||
Consumer Staples— 4.4% | |||
128,342 | 1 | Bellring Brands, Inc. | 4,613,895 |
115,274 | Cal-Maine Foods, Inc. | 5,324,506 | |
9,416 | Coca-Cola Bottling Co. | 5,964,188 | |
173,201 | 1 | elf Beauty, Inc. | 20,216,021 |
64,174 | Energizer Holdings, Inc. | 2,291,012 | |
149,546 | 1 | Hostess Brands, Inc. | 3,595,086 |
7,007 | Ingles Markets, Inc., Class A | 594,193 | |
81,876 | Primo Water Corp. | 1,160,183 | |
72,542 | SpartanNash Co. | 1,627,842 | |
125,811 | 1 | Sprouts Farmers Market, Inc. | 4,938,082 |
32,728 | Turning Point Brands, Inc. | 780,563 | |
TOTAL | 51,105,571 | ||
Energy— 8.2% | |||
102,648 | 1,2 | Amplify Energy Corp. | 753,436 |
368,548 | Ardmore Shipping Corp. | 5,189,156 | |
184,466 | California Resources Corp. | 9,841,261 | |
58,239 | 1 | Callon Petroleum Corp. | 2,187,457 |
16,120 | Championx Corp. | 573,872 | |
35,552 | Civitas Resources, Inc. | 2,661,423 | |
72,914 | CONSOL Energy, Inc. | 5,433,551 | |
52,269 | 1 | Dorian LPG Ltd. | 1,554,480 |
585,532 | Equitrans Midstream Corp. | 6,071,967 | |
33,591 | Golar LNG Ltd. | 810,215 | |
117,582 | 1 | Gulf Island Fabrication, Inc. | 398,603 |
44,479 | International Seaways, Inc. | 1,907,704 | |
12,147 | 1 | Nabors Industries Ltd. | 1,487,886 |
145,767 | 1 | Oceaneering International, Inc. | 3,272,469 |
160,820 | PBF Energy, Inc. | 7,629,301 | |
52,641 | RPC, Inc. | 437,973 | |
132,832 | Scorpio Tankers, Inc. | 6,248,417 | |
82,705 | SM Energy Co. | 3,001,364 | |
427,069 | 1 | US Silica Holdings, Inc. | 5,556,168 |
63,665 | 1 | Vital Energy, Inc. | 3,360,239 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Energy— continued | |||
324,898 | 1 | Weatherford International PLC | $ 26,999,024 |
TOTAL | 95,375,966 | ||
Financials— 14.7% | |||
11,680 | 1st Source Corp. | 547,792 | |
59,774 | Amalgamated Financial Corp. | 1,193,089 | |
8,875 | A-Mark Precious Metals, Inc. | 362,011 | |
44,804 | Artisan Partners Asset Management, Inc. | 1,858,918 | |
11,831 | 1 | AssetMark Financial Holdings, Inc. | 353,747 |
839,866 | 1 | AvidXchange Holdings, Inc. | 10,422,737 |
11,651 | BancFirst Corp. | 1,163,935 | |
305,783 | Byline Bancorp, Inc. | 6,711,937 | |
221,121 | 1 | Cantaloupe, Inc. | 1,704,843 |
323,393 | CNO Financial Group, Inc. | 8,317,668 | |
15,964 | 1 | Coastal Financial Corp. | 721,094 |
1,280,397 | Colony Credit Real Estate, Inc. | 9,423,722 | |
18,400 | Equity Bancshares, Inc. | 499,744 | |
70,182 | Financial Institutions, Inc. | 1,346,091 | |
30,902 | First Business Financial Services, Inc. | 1,050,359 | |
917,621 | First Foundation, Inc. | 6,707,810 | |
35,013 | 1 | Flywire Corp. | 1,195,344 |
742,357 | 1 | Genworth Financial, Inc., Class A | 4,350,212 |
1,126,817 | 1 | Green Dot Corp. | 22,029,272 |
75,475 | Heritage Commerce Corp. | 724,560 | |
43,522 | Heritage Financial Corp. | 816,473 | |
82,788 | Hometrust Bancshares, Inc. | 2,012,576 | |
115,519 | Independent Bank Corp.- Michigan | 2,386,623 | |
126,044 | 2 | Invesco Mortgage Capital, Inc. | 1,513,788 |
196,540 | Jackson Financial, Inc. | 6,489,751 | |
34,869 | Kinsale Capital Group, Inc. | 12,993,235 | |
119,501 | Ladder Capital Corp. | 1,313,316 | |
108,743 | 1 | LendingTree, Inc. | 2,653,329 |
139,774 | Live Oak Bancshares, Inc. | 5,293,241 | |
9,934 | 1 | Mr. Cooper Group, Inc. | 575,874 |
89,200 | 1 | NerdWallet, Inc. | 999,932 |
117,548 | OFG Bancorp. | 3,936,683 | |
167,014 | 1 | Oscar Health, Inc. | 1,255,945 |
179,628 | 1 | Paysafe Ltd. | 2,160,925 |
48,266 | Peapack-Gladstone Financial Corp. | 1,410,815 | |
27,542 | Preferred Bank Los Angeles, CA | 1,819,975 | |
318,828 | 1 | PROG Holdings, Inc. | 12,938,040 |
106,522 | QCR Holdings, Inc. | 5,457,122 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Financials— continued | |||
231,876 | 1 | Remitly Global, Inc. | $ 4,470,569 |
64,639 | RLI Corp. | 8,623,489 | |
6,724 | Selective Insurance Group, Inc. | 693,850 | |
141,670 | 1 | Siriuspoint Ltd. | 1,323,198 |
529,100 | 1 | StoneCo Ltd. | 7,666,659 |
53,720 | Tiptree, Inc. | 793,444 | |
150,981 | Western New England Bancorp, Inc. | 1,010,063 | |
TOTAL | 171,293,800 | ||
Health Care— 16.2% | |||
70,733 | 1 | Acadia Pharmaceuticals, Inc. | 2,068,233 |
199,467 | 1 | Alector, Inc. | 1,368,344 |
52,991 | 1 | Alkermes, Inc. | 1,551,576 |
108,494 | 1 | Alphatec Holdings, Inc. | 1,917,089 |
234,363 | 1,2 | Alx Oncology Holdings, Inc. | 1,431,958 |
13,636 | 1 | AMN Healthcare Services, Inc. | 1,461,097 |
147,694 | 1 | Amphastar Pharmaceuticals, Inc. | 8,963,549 |
67,201 | 1,2 | Arcellx, Inc. | 2,301,634 |
35,678 | 1 | Arcus Biosciences, Inc. | 709,992 |
415,495 | 1 | Atea Pharmaceuticals, Inc. | 1,425,148 |
125,856 | 1 | Biohaven Ltd. | 2,502,017 |
262,297 | 1 | Bridgebio Pharma, Inc. | 9,183,018 |
770,563 | 1 | Cara Therapeutics, Inc. | 2,565,975 |
26,516 | 1 | Catalyst Pharmaceutical Partners, Inc. | 366,716 |
862,915 | 1 | Codexis, Inc. | 3,106,494 |
59,821 | 1 | Collegium Pharmaceutical, Inc. | 1,361,526 |
1,047,490 | 1 | Community Health Systems, Inc. | 4,598,481 |
347,580 | 1 | Cross Country Healthcare, Inc. | 8,967,564 |
170,399 | 1 | Emergent BioSolutions, Inc. | 1,172,345 |
1,426,143 | 1 | Fate Therapeutics, Inc. | 5,889,971 |
500,507 | 1,2 | Gossamer Bio, Inc. | 675,684 |
18,495 | 1 | Haemonetics Corp. | 1,705,979 |
429,850 | 1 | Hims & Hers Health, Inc. | 3,855,755 |
32,501 | 1 | Immunovant, Inc. | 741,998 |
111,540 | 1,2 | Innovage Holding Corp. | 803,088 |
46,488 | 1 | Inogen, Inc. | 379,807 |
66,135 | 1 | Intercept Group, Inc. | 714,258 |
72,995 | 1 | Lantheus Holdings, Inc. | 6,313,338 |
16,540 | 1 | Ligand Pharmaceuticals, Inc., Class B | 1,107,022 |
67,607 | 1 | Livanova PLC | 3,951,629 |
647,010 | 1 | MacroGenics, Inc. | 3,086,238 |
1,778 | 1 | Medpace Holdings, Inc. | 450,136 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Health Care— continued | |||
362,522 | 1 | MiMedx Group, Inc. | $ 2,925,553 |
703,443 | 1,2 | Nektar Therapeutics | 376,905 |
118,645 | 1 | NeoGenomics, Inc. | 2,056,118 |
199,166 | 1 | NGM Biopharmaceuticals, Inc. | 472,023 |
160,193 | 1,2 | Novavax, Inc. | 1,486,591 |
21,122 | 1 | NuVasive, Inc. | 870,438 |
365,171 | 1 | Nuvation Bio, Inc. | 675,566 |
126,561 | 1 | Omnicell, Inc. | 7,992,327 |
217,412 | 1 | OptimizeRX Corp | 3,032,897 |
386,559 | 1 | OraSure Technologies, Inc. | 1,824,558 |
280,858 | Owens & Minor, Inc. | 5,403,708 | |
215,657 | 1 | Pacira BioSciences, Inc. | 7,839,132 |
206,090 | 1 | Pediatrix Medical Group | 2,829,616 |
76,998 | 1 | Phathom Pharmaceuticals, Inc. | 1,171,140 |
818,474 | 1 | PMV Pharmaceuticals, Inc. | 5,352,820 |
368,059 | 1 | Point Biopharma Global, Inc. | 3,290,447 |
11,817 | 1 | Prestige Consumer Healthcare, Inc. | 770,587 |
168,324 | 1,2 | Privia Health Group, Inc. | 4,699,606 |
27,873 | 1 | Protagonist Therapeutics, Inc. | 540,736 |
176,632 | 1 | RxSight, Inc. | 5,894,210 |
24,262 | 1 | SAGE Therapeutics, Inc. | 841,406 |
8,790 | 1 | Shockwave Medical, Inc. | 2,290,674 |
199,624 | 1 | SI-BONE, Inc. | 5,142,314 |
2,758,123 | 1,2 | Siga Technologies, Inc. | 15,831,626 |
48,301 | 1 | Supernus Pharmaceuticals, Inc. | 1,482,358 |
202,124 | 1 | Tactile Systems Technology, Inc. | 4,630,661 |
210,502 | 1 | The Joint Corp. | 2,841,777 |
848,046 | 1 | Vanda Pharmaceuticals, Inc. | 4,901,706 |
111,975 | 1 | Vir Biotechnology, Inc. | 1,576,608 |
274,488 | 1 | Voyager Therapeutics, Inc. | 2,558,228 |
TOTAL | 188,299,995 | ||
Industrials— 17.3% | |||
138,533 | 1 | ACV Auctions, Inc. | 2,422,942 |
7,906 | 1 | Allegiant Travel Co. | 977,972 |
12,662 | 1 | ASGN, Inc. | 966,364 |
63,355 | 1 | Atkore, Inc. | 10,052,538 |
17,596 | 1 | Beacon Roofing Supply, Inc. | 1,507,449 |
95,177 | Boise Cascade Co. | 9,849,868 | |
491,297 | 1 | BrightView Holdings, Inc. | 3,787,900 |
8,115 | 1 | CBIZ, Inc. | 429,202 |
167,066 | 1 | CECO Environmental Corp. | 2,011,475 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Industrials— continued | |||
38,895 | 1 | Cimpress PLC | $ 2,703,203 |
93,262 | 1 | Concrete Pumping Holdings, Inc. | 752,624 |
466,259 | 1 | Conduent, Inc. | 1,613,256 |
14,273 | 2 | Eagle Bulk Shipping, Inc. | 659,270 |
46,593 | Emcor Group, Inc. | 10,019,359 | |
1,760,760 | 1 | Enviri Corp. | 16,603,967 |
58,231 | 1 | Exlservice Holding, Inc. | 8,207,659 |
24,651 | 1,2 | Fluence Energy, Inc. | 720,795 |
144,988 | 1 | Forrester Research, Inc. | 4,620,768 |
108,303 | 1 | Franklin Covey Co. | 5,160,638 |
76,629 | Genco Shipping & Trading Ltd. | 1,111,121 | |
287,114 | 1 | GMS, Inc. | 21,157,431 |
962,832 | GrafTech International Ltd. | 5,083,753 | |
39,446 | Healthcare Services Group, Inc. | 497,414 | |
77,964 | Heidrick & Struggles International, Inc. | 2,126,078 | |
37,603 | 1 | Heritage-Crystal Clean, Inc. | 1,732,370 |
83,808 | Hurco Co., Inc. | 1,951,888 | |
52,535 | 1 | Huron Consulting Group, Inc. | 4,968,235 |
87,791 | Hyster-Yale Materials Handling, Inc. | 4,192,898 | |
228,478 | 1 | JELD-WEN Holding, Inc. | 4,069,193 |
92,155 | 1 | Legalzoom.com, Inc. | 1,408,128 |
250,392 | 1 | Manitowoc, Inc. | 4,537,103 |
523,165 | 1 | Mistras Group, Inc. | 4,049,297 |
86,533 | 1 | MRC Global, Inc. | 976,958 |
255,850 | 1 | Now, Inc. | 2,914,131 |
333,027 | 1 | Parsons Corp. | 16,458,194 |
31,171 | Resources Connection, Inc. | 498,113 | |
56,743 | REV Group, Inc. | 733,687 | |
343,336 | 1 | SkyWest, Inc. | 15,103,351 |
7,275 | Tennant Co. | 583,746 | |
129,182 | Terex Corp. | 7,573,941 | |
163,330 | 1 | Thermon Group Holdings, Inc. | 4,509,541 |
95,360 | 1 | TrueBlue, Inc. | 1,425,632 |
21,743 | Universal Truckload Services, Inc. | 675,990 | |
116,379 | 1 | Upwork, Inc. | 1,213,833 |
60,791 | Veritiv Corp. | 8,518,643 | |
2,381 | Watts Industries, Inc., Class A | 444,128 | |
TOTAL | 201,582,046 | ||
Information Technology— 12.4% | |||
484,225 | 1 | 8x8, Inc. | 2,295,227 |
88,664 | 1 | Alarm.com Holdings, Inc. | 4,895,139 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Information Technology— continued | |||
53,426 | 1 | Altair Engineering, Inc. | $ 4,003,744 |
15,432 | 1 | AppFolio, Inc. | 2,786,865 |
316,194 | 1 | Arlo Technologies, Inc. | 3,591,964 |
582,320 | 1 | AvePoint, Inc. | 3,610,384 |
52,642 | 1 | Box, Inc. | 1,645,063 |
427,291 | 1 | Brightcove, Inc. | 1,918,537 |
26,512 | 1 | Ceva, Inc. | 720,066 |
18,492 | 1 | Commvault Systems, Inc. | 1,441,082 |
108,033 | Comtech Telecommunications Corp. | 1,097,615 | |
64,273 | 1,2 | Digitalocean Holdings, Inc. | 3,182,799 |
101,529 | 1 | Extreme Networks, Inc. | 2,699,656 |
39,079 | 1 | Freshworks, Inc. | 729,214 |
142,458 | 1 | Intapp, Inc. | 5,849,325 |
354,983 | 1 | LivePerson, Inc. | 1,686,169 |
659,936 | 1 | LiveRamp Holdings, Inc. | 18,834,573 |
127,536 | 1 | MaxLinear, Inc. | 3,146,313 |
208,010 | 1 | Model N, Inc. | 6,930,893 |
750,808 | 1 | ON24, Inc. | 6,644,651 |
8,471 | 1 | Qualys, Inc. | 1,175,775 |
718,262 | 1,2 | Rackspace Technology, Inc. | 1,666,368 |
399,360 | 1 | Ribbon Communications, Inc. | 1,269,965 |
115,121 | 1 | Rimini Street, Inc. | 313,129 |
32,443 | 1 | Rogers Corp. | 5,470,214 |
7,744 | 1 | Sanmina Corp. | 475,946 |
124,574 | Sapiens International Corp. NV | 3,356,024 | |
479,546 | 1 | SolarWinds Corp. | 5,054,415 |
289,012 | 1 | Sprinklr, Inc. | 4,057,728 |
20,472 | 1 | SPS Commerce, Inc. | 3,692,944 |
332,025 | 1 | Squarespace, Inc. | 11,003,308 |
29,828 | 1 | Synaptics, Inc. | 2,693,767 |
409,547 | 1 | Telos Corp. | 1,027,963 |
549,349 | 1 | Unisys Corp. | 2,988,459 |
328,478 | 1 | Varonis Systems, Inc. | 9,427,319 |
20,713 | 1 | Vishay Precision Group, Inc. | 774,873 |
283,974 | 1 | Weave Communications, Inc. | 3,407,688 |
163,673 | Xerox Holdings Corp. | 2,615,495 | |
94,165 | Xperi Holding Corp. | 1,131,863 | |
549,677 | 1 | Yext, Inc. | 5,342,860 |
TOTAL | 144,655,382 | ||
Materials— 3.8% | |||
91,249 | 1 | ATI, Inc. | 4,350,752 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Materials— continued | |||
86,576 | Commercial Metals Corp. | $ 4,953,879 | |
30,627 | 1 | Constellium SE | 584,669 |
185,996 | 1 | Intrepid Potash, Inc. | 5,114,890 |
12,857 | Koppers Holdings, Inc. | 491,909 | |
56,863 | Kronos Worldwide, Inc. | 531,669 | |
113,379 | 1 | LSB Industries, Inc. | 1,266,443 |
100,654 | Myers Industries, Inc. | 1,973,825 | |
356,204 | 1 | O-I Glass, Inc. | 8,178,444 |
115,487 | 1 | Summit Materials, Inc. | 4,178,320 |
723,691 | SunCoke Energy, Inc. | 6,426,376 | |
138,814 | Warrior Met Coal, Inc. | 6,142,520 | |
TOTAL | 44,193,696 | ||
Real Estate— 5.4% | |||
33,431 | Alexander and Baldwin, Inc. | 641,875 | |
342,816 | 1 | Anywhere Real Estate, Inc. | 2,872,798 |
403,792 | Apartment Investment & Management Co., Class A | 3,363,587 | |
183,908 | Armada Hoffler Properties, Inc. | 2,284,137 | |
2,632,532 | Brandywine Realty Trust | 13,294,287 | |
317,608 | City Office REIT, Inc. | 1,737,316 | |
38,645 | Gladstone Land Corp. | 646,917 | |
496,246 | Macerich Co. (The) | 6,327,137 | |
656,797 | Newmark Group, Inc. | 4,545,035 | |
883,067 | 1,2 | Redfin Corp. | 13,228,344 |
309,452 | RMR Group, Inc./The | 7,296,878 | |
95,278 | Service Properties Trust | 808,910 | |
1,004,349 | Uniti Group, Inc. | 5,604,268 | |
TOTAL | 62,651,489 | ||
Utilities— 2.3% | |||
7,820 | Chesapeake Utilities Corp. | 924,637 | |
339,281 | Clearway Energy, Inc. | 8,370,062 | |
24,247 | New Jersey Resources Corp. | 1,083,841 | |
5,759 | ONE Gas, Inc. | 455,709 | |
109,486 | 2 | Otter Tail Corp. | 8,869,461 |
146,791 | Portland General Electric Co. | 6,997,527 | |
TOTAL | 26,701,237 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $941,185,292) | 1,139,876,481 | ||
INVESTMENT COMPANIES— 3.3% | |||
29,537,824 | Federated Hermes Government Obligations Fund, Premier Shares, 5.16%3 | 29,537,824 |
Shares | Value | ||
INVESTMENT COMPANIES— continued | |||
8,767,295 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 5.32%3 | $ 8,766,419 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $38,303,372) | 38,304,243 | ||
TOTAL INVESTMENT IN SECURITIES—101.3% (IDENTIFIED COST $979,488,664)4 | 1,178,180,724 | ||
OTHER ASSETS AND LIABILITIES - NET—(1.3)%5 | (14,848,801) | ||
TOTAL NET ASSETS—100% | $1,163,331,923 |
Affiliated | Value as of 7/31/2022 | Purchases at Cost* | Proceeds from Sales* |
Health Care: | |||
Alector, Inc.** | $9,059,233 | $1,318,365 | $(7,721,877) |
Amphastar Pharmaceuticals, Inc. | $2,935,115 | $2,655,727 | $(375,722) |
Siga Technologies, Inc. | $— | $17,599,196 | $— |
Information Technology: | |||
Brightcove, Inc.** | $8,244,421 | $— | $(5,181,698) |
Affiliated issuers no longer in the portfolio at period end | $3,522,384 | $— | $(3,579,976) |
TOTAL OF AFFILIATED COMPANIES TRANSACTIONS | $23,761,153 | $21,573,288 | $(16,859,273) |
Change in Unrealized Appreciation/ (Depreciation)* | Net Realized Gain/ (Loss)* | Value as of 7/31/2023 | Shares Held as of 7/31/2023 | Dividend Income* |
$2,833,906 | $(4,121,283) | $1,368,344 | 199,467 | $— |
$3,609,686 | $138,743 | $8,963,549 | 147,694 | $— |
$(1,767,570) | $— | $15,831,626 | 2,758,123 | $1,241,155 |
$2,529,073 | $(3,673,259) | $1,918,537 | 427,291 | $— |
$1,912,934 | $(1,855,342) | $— | — | $— |
$9,118,029 | $(9,511,141) | $28,082,056 | 3,532,575 | $1,241,155 |
* | A portion of the amount shown may have been recorded when the Fund no longer had ownership of at least 5% of the voting shares. |
** | At July 31, 2023, 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 7/31/2022 | $41,790,036 | $24,461,888 | $66,251,924 |
Purchases at Cost | $186,263,252 | $312,239,450 | $498,502,702 |
Proceeds from Sales | $(198,515,464) | $(327,951,029) | $(526,466,493) |
Change in Unrealized Appreciation/ Depreciation | $— | $(1,016) | $(1,016) |
Net Realized Gain/(Loss) | $— | $17,126 | $17,126 |
Value as of 7/31/2023 | $29,537,824 | $8,766,419 | $38,304,243 |
Shares Held as of 7/31/2023 | 29,537,824 | 8,767,295 | 38,305,119 |
Dividend Income | $803,992 | $847,762 | $1,651,754 |
* | 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 | 7-day net yield. |
4 | The cost of investments for federal tax purposes amounts to $990,070,322. |
5 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
The following acronym(s) are used throughout this portfolio: | ||
REIT | —Real Estate Investment Trust |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $20.57 | $26.48 | $17.19 | $18.87 | $21.19 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.05 | 0.04 | (0.01) | 0.04 | 0.01 |
Net realized and unrealized gain (loss) | 1.15 | (1.95) | 9.35 | (1.68) | (1.70) |
Total From Investment Operations | 1.20 | (1.91) | 9.34 | (1.64) | (1.69) |
Less Distributions: | |||||
Distributions from net investment income | — | (0.04) | (0.05) | (0.04) | — |
Distributions from net realized gain | (0.69) | (3.96) | — | — | (0.63) |
Total Distributions | (0.69) | (4.00) | (0.05) | (0.04) | (0.63) |
Net Asset Value, End of Period | $21.08 | $20.57 | $26.48 | $17.19 | $18.87 |
Total Return2 | 6.23% | (9.54)% | 54.38% | (8.71)% | (7.69)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.13% | 1.13% | 1.13% | 1.13% | 1.13% |
Net investment income (loss) | 0.26% | 0.15% | (0.03)% | 0.24% | 0.07% |
Expense waiver/reimbursement4 | 0.25% | 0.23% | 0.29% | 0.31% | 0.22% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $121,927 | $131,704 | $101,026 | $78,347 | $68,546 |
Portfolio turnover5 | 128% | 124% | 150% | 223% | 121% |
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 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $17.32 | $23.02 | $15.03 | $16.58 | $18.84 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.10) | (0.13) | (0.15) | (0.08) | (0.12) |
Net realized and unrealized gain (loss) | 0.95 | (1.61) | 8.14 | (1.47) | (1.51) |
Total From Investment Operations | 0.85 | (1.74) | 7.99 | (1.55) | (1.63) |
Less Distributions: | |||||
Distributions from net realized gain | (0.69) | (3.96) | — | — | (0.63) |
Net Asset Value, End of Period | $17.48 | $17.32 | $23.02 | $15.03 | $16.58 |
Total Return2 | 5.35% | (10.30)% | 53.16% | (9.35)% | (8.35)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.98% | 1.96% | 1.88% | 1.88% | 1.88% |
Net investment income (loss) | (0.59)% | (0.65)% | (0.78)% | (0.51)% | (0.69)% |
Expense waiver/reimbursement4 | 0.06% | 0.08% | 0.18% | 0.23% | 0.28% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $24,784 | $26,809 | $29,567 | $22,720 | $28,411 |
Portfolio turnover5 | 128% | 124% | 150% | 223% | 121% |
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 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $21.54 | $27.53 | $17.87 | $19.59 | $21.94 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.10 | 0.10 | 0.05 | 0.09 | 0.06 |
Net realized and unrealized gain (loss) | 1.20 | (2.04) | 9.71 | (1.74) | (1.76) |
Total From Investment Operations | 1.30 | (1.94) | 9.76 | (1.65) | (1.70) |
Less Distributions: | |||||
Distributions from net investment income | (0.04) | (0.09) | (0.10) | (0.07) | (0.02) |
Distributions from net realized gain | (0.69) | (3.96) | — | — | (0.63) |
Total Distributions | (0.73) | (4.05) | (0.10) | (0.07) | (0.65) |
Net Asset Value, End of Period | $22.11 | $21.54 | $27.53 | $17.87 | $19.59 |
Total Return2 | 6.47% | (9.31)% | 54.73% | (8.45)% | (7.45)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.88% | 0.88% | 0.88% | 0.88% | 0.88% |
Net investment income | 0.51% | 0.40% | 0.21% | 0.49% | 0.31% |
Expense waiver/reimbursement4 | 0.15% | 0.15% | 0.15% | 0.18% | 0.22% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $883,270 | $995,056 | $843,803 | $574,041 | $842,221 |
Portfolio turnover5 | 128% | 124% | 150% | 223% | 121% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $21.55 | $27.54 | $17.87 | $19.59 | $21.94 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.11 | 0.11 | 0.06 | 0.09 | 0.06 |
Net realized and unrealized gain (loss) | 1.20 | (2.05) | 9.71 | (1.74) | (1.76) |
Total From Investment Operations | 1.31 | (1.94) | 9.77 | (1.65) | (1.70) |
Less Distributions: | |||||
Distributions from net investment income | (0.05) | (0.09) | (0.10) | (0.07) | (0.02) |
Distributions from net realized gain | (0.69) | (3.96) | — | — | (0.63) |
Total Distributions | (0.74) | (4.05) | (0.10) | (0.07) | (0.65) |
Net Asset Value, End of Period | $22.12 | $21.55 | $27.54 | $17.87 | $19.59 |
Total Return2 | 6.47% | (9.30)% | 54.79% | (8.44)% | (7.45)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% |
Net investment income | 0.52% | 0.44% | 0.24% | 0.49% | 0.32% |
Expense waiver/reimbursement4 | 0.06% | 0.06% | 0.08% | 0.08% | 0.12% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $133,351 | $63,242 | $64,191 | $47,631 | $33,753 |
Portfolio turnover5 | 128% | 124% | 150% | 223% | 121% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Securities that mature are considered sales for purposes of this calculation. |
July 31, 2023
Assets: | |
Investment in securities, at value including $29,410,304 of securities loaned and $66,386,299 of investments in affiliated holdings* (identified cost $979,488,664, including $65,147,461 of identified cost in affiliated holdings) | $1,178,180,724 |
Income receivable | 205,775 |
Income receivable from affiliated holdings | 89,363 |
Receivable for investments sold | 16,887,662 |
Receivable for shares sold | 2,104,510 |
Total Assets | 1,197,468,034 |
Liabilities: | |
Payable for investments purchased | 3,339,796 |
Payable for shares redeemed | 858,926 |
Payable to bank | 28,881 |
Payable for collateral due to broker for securities lending (Note 2) | 29,537,824 |
Payable for investment adviser fee (Note 5) | 23,372 |
Payable for administrative fee (Note 5) | 2,452 |
Payable for Directors’/Trustees’ fees (Note 5) | 212 |
Payable for transfer agent fees (Note 2) | 130,484 |
Payable for distribution services fee (Note 5) | 15,315 |
Payable for other service fees (Notes 2 and 5) | 58,049 |
Accrued expenses (Note 5) | 140,800 |
Total Liabilities | 34,136,111 |
Net assets for 53,184,892 shares outstanding | $1,163,331,923 |
Net Assets Consist of: | |
Paid-in capital | $1,105,803,005 |
Total distributable earnings (loss) | 57,528,918 |
Total Net Assets | $1,163,331,923 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($121,927,324 ÷ 5,785,334 shares outstanding), no par value, unlimited shares authorized | $21.08 |
Offering price per share (100/94.50 of $21.08) | $22.31 |
Redemption proceeds per share | $21.08 |
Class C Shares: | |
Net asset value per share ($24,783,853 ÷ 1,418,150 shares outstanding), no par value, unlimited shares authorized | $17.48 |
Offering price per share | $17.48 |
Redemption proceeds per share (99.00/100 of $17.48) | $17.31 |
Institutional Shares: | |
Net asset value per share ($883,270,054 ÷ 39,952,538 shares outstanding), no par value, unlimited shares authorized | $22.11 |
Offering price per share | $22.11 |
Redemption proceeds per share | $22.11 |
Class R6 Shares: | |
Net asset value per share ($133,350,692 ÷ 6,028,870 shares outstanding), no par value, unlimited shares authorized | $22.12 |
Offering price per share | $22.12 |
Redemption proceeds per share | $22.12 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31, 2023
Investment Income: | |
Dividends (including $2,065,688 received from affiliated holdings* and net of foreign taxes withheld of $20,320) | $15,211,108 |
Net income on securities loaned (includes $827,221 earned from affiliated holdings related to cash collateral balances*) (Note 2) | 553,270 |
TOTAL INCOME | 15,764,378 |
Expenses: | |
Investment adviser fee (Note 5) | 9,062,455 |
Administrative fee (Note 5) | 890,429 |
Custodian fees | 90,449 |
Transfer agent fees (Note 2) | 1,287,138 |
Directors’/Trustees’ fees (Note 5) | 7,638 |
Auditing fees | 30,672 |
Legal fees | 11,666 |
Portfolio accounting fees | 164,879 |
Distribution services fee (Note 5) | 183,144 |
Other service fees (Notes 2 and 5) | 359,499 |
Share registration costs | 92,778 |
Printing and postage | 80,141 |
Miscellaneous (Note 5) | 36,420 |
TOTAL EXPENSES | 12,297,308 |
Waiver and Reimbursements: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (710,305) |
Reimbursement of other operating expenses (Notes 2 and 5) | (1,005,042) |
TOTAL WAIVER AND REIMBURSEMENTS | (1,715,347) |
Net expenses | 10,581,961 |
Net investment income | 5,182,417 |
Realized and Unrealized Gain (Loss) on Investments: | |
Net realized loss on investments (including net realized loss of $(9,494,015) on sales of investments in affiliated holdings*) | (133,042,489) |
Net change in unrealized depreciation of investments (including net change in unrealized depreciation of $9,117,013 on investments in affiliated holdings*) | 199,468,884 |
Net realized and unrealized gain (loss) on investments | 66,426,395 |
Change in net assets resulting from operations | $71,608,812 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31 | 2023 | 2022 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $5,182,417 | $4,298,428 |
Net realized gain (loss) | (133,042,489) | 102,777,672 |
Net change in unrealized appreciation/depreciation | 199,468,884 | (246,941,146) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 71,608,812 | (139,865,046) |
Distributions to Shareholders: | ||
Class A Shares | (4,206,905) | (23,745,432) |
Class C Shares | (1,019,541) | (5,171,780) |
Institutional Shares | (32,515,907) | (141,205,590) |
Class R6 Shares | (1,987,801) | (10,318,256) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (39,730,154) | (180,441,058) |
Share Transactions: | ||
Proceeds from sale of shares | 337,803,209 | 600,530,685 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Funds | — | 139,265,487 |
Net asset value of shares issued to shareholders in payment of distributions declared | 37,053,960 | 167,654,191 |
Cost of shares redeemed | (460,215,776) | (408,919,051) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (85,358,607) | 498,531,312 |
Change in net assets | (53,479,949) | 178,225,208 |
Net Assets: | ||
Beginning of period | 1,216,811,872 | 1,038,586,664 |
End of period | $1,163,331,923 | $1,216,811,872 |
Hancock Fund | Share Class Exchanged | Fund Shares Received |
Hancock Horizon Burkenroad Small Cap Fund | Investor Class | 1.214 Class A Shares |
Class D | 1.098 Class A Shares | |
Institutional Class | 1.180 Institutional Shares | |
Hancock Horizon Microcap Fund | Investor Class | 0.648 Class A Shares |
Institutional Class | 0.629 Institutional Shares |
Shares of the Fund Issued | Acquired Funds’ Net Assets Received | Unrealized Appreciation | Net Assets of the Fund Immediately Prior to Combination | Net Assets of the Fund Immediately After Combination |
4,877,868 | $139,265,487 | $63,521,835 | $1,127,473,055 | $1,266,738,542 |
Net investment income | $4,195,825 |
Net realized and unrealized gain (loss) on investments | (144,575,223) |
Net decrease in net assets resulting from operations | $(140,379,398) |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $255,097 | $(226,867) |
Class C Shares | 31,100 | (343) |
Institutional Shares | 987,519 | (777,832) |
Class R6 Shares | 13,422 | — |
TOTAL | $1,287,138 | $(1,005,042) |
Other Service Fees Incurred | |
Class A Shares | $299,430 |
Class C Shares | 60,069 |
TOTAL | $359,499 |
Fair Value of Securities Loaned | Collateral Received |
$29,410,304 | $29,537,824 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 594,200 | $11,533,484 | 822,248 | $19,987,809 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Funds | — | — | 2,344,520 | 65,576,215 |
Shares issued to shareholders in payment of distributions declared | 204,453 | 3,853,948 | 886,629 | 21,632,986 |
Shares redeemed | (1,415,578) | (27,624,558) | (1,466,267) | (35,892,277) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | (616,925) | $(12,237,126) | 2,587,130 | $71,304,733 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 167,899 | $2,732,709 | 325,861 | $6,754,347 |
Shares issued to shareholders in payment of distributions declared | 62,196 | 977,102 | 240,715 | 4,963,547 |
Shares redeemed | (359,404) | (5,832,724) | (303,554) | (6,020,324) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (129,309) | $(2,122,913) | 263,022 | $5,697,570 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 11,225,869 | $229,611,353 | 21,838,587 | $543,488,311 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Funds | — | — | 2,533,148 | 73,689,272 |
Shares issued to shareholders in payment of distributions declared | 1,542,190 | 30,477,693 | 5,169,136 | 132,113,172 |
Shares redeemed | (19,013,556) | (390,289,089) | (13,998,302) | (343,632,941) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (6,245,497) | $(130,200,043) | 15,542,569 | $405,657,814 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 4,780,569 | $93,925,663 | 1,215,271 | $30,300,218 |
Shares issued to shareholders in payment of distributions declared | 88,265 | 1,745,217 | 349,824 | 8,944,486 |
Shares redeemed | (1,774,824) | (36,469,405) | (961,453) | (23,373,509) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | 3,094,010 | $59,201,475 | 603,642 | $15,871,195 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (3,897,721) | $(85,358,607) | 18,996,363 | $498,531,312 |
2023 | 2022 | |
Ordinary income1 | $2,129,046 | $93,648,243 |
Long-term capital gains | $37,601,108 | $86,792,815 |
1 | For tax purposes, short-term capital gains distributions are considered ordinary income distributions. |
Undistributed ordinary income | $3,314,541 |
Net unrealized appreciation | $188,110,402 |
Capital loss carryforwards and deferrals | $(133,896,025) |
TOTAL | $57,528,918 |
Short-Term | Long-Term | Total |
$133,896,025 | $— | $133,896,025 |
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 | $183,144 |
Purchases | $1,425,184,216 |
Sales | $1,540,272,699 |
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/ernstyoungsig.jpg)
September 25, 2023
Beginning Account Value 2/1/2023 | Ending Account Value 7/31/2023 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,018.40 | $5.66 |
Class C Shares | $1,000 | $1,013.90 | $9.89 |
Institutional Shares | $1,000 | $1,019.40 | $4.41 |
Class R6 Shares | $1,000 | $1,019.40 | $4.36 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,019.19 | $5.66 |
Class C Shares | $1,000 | $1,014.98 | $9.89 |
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 | 1.98% |
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; Director and 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, and Federated MDTA LLC; Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and CEO of Passport Research, Ltd.; Director 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: 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.; Lead Director, Member of the Audit and Nominating and Corporate Governance Committees, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 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 (natural gas). 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 Associate General Secretary of the Diocese of Pittsburgh, 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 (natural gas). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint Francis University. |
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. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber); and Director, The Golisano Children’s Museum of Naples, Florida. |
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; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors, Duquesne University (Retired). Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors and 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. Ms. Reilly currently serves as a member of the Board of Directors of UPMC Mercy 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 |
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; 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). |
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. |
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. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
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/0001623632-23-001324/edelivery.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/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/0001623632-23-001324/fscbug_small.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/img149083f91.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/0001623632-23-001324/donahuechrissigsmall.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/fmscgar37313.jpg)
1 Year | 5 Years | 10 Years | ||
Class A Shares | 5.06% | 3.93% | 9.39% | |
Class C Shares | 9.27% | 4.29% | 9.35% | |
Institutional Shares | 11.49% | 5.37% | 10.29% | |
Class R6 Shares4 | 11.49% | 5.39% | 10.26% | |
R2000G | 11.58% | 4.82% | 8.54% | |
MSGFA | 8.00% | 7.21% | 9.40% |
Sector Composition | Percentage of Total Net Assets |
Health Care | 22.4% |
Information Technology | 20.2% |
Industrials | 19.6% |
Consumer Discretionary | 11.0% |
Financials | 6.3% |
Energy | 5.8% |
Consumer Staples | 5.4% |
Materials | 3.2% |
Real Estate | 2.5% |
Communication Services | 2.4% |
Utilities | 0.5% |
Securities Lending Collateral2 | 2.8% |
Cash Equivalents3 | 0.9% |
Other Assets and Liabilities—Net4 | (3.0)% |
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— 99.3% | |||
Communication Services— 2.4% | |||
137,016 | 1 | CarGurus, Inc. | $ 3,104,782 |
207,346 | 1 | Cinemark Holdings, Inc. | 3,460,605 |
239,267 | 1 | Eventbrite, Inc. | 2,753,963 |
184,730 | Gray Television, Inc. | 1,749,393 | |
251,459 | 1 | Vimeo Holdings, Inc. | 1,036,011 |
21,174 | 1 | Yelp, Inc. | 953,889 |
TOTAL | 13,058,643 | ||
Consumer Discretionary— 11.0% | |||
32,402 | Bloomin Brands, Inc. | 870,642 | |
37,411 | Camping World Holdings, Inc. | 1,198,274 | |
155,432 | 1 | Chegg, Inc. | 1,574,526 |
614,207 | Clarus Corp. | 5,466,442 | |
30,861 | 1,2 | Duolingo, Inc. | 4,789,319 |
56,928 | 1 | GoPro, Inc. | 232,836 |
156,817 | 1,2 | Groupon, Inc. | 1,238,854 |
117,565 | 1 | Inspired Entertainment, Inc. | 1,480,143 |
25,575 | International Game Technology PLC | 865,202 | |
4,182 | 1 | K12, Inc. | 159,794 |
74,012 | 1,2 | Kirkland’s, Inc. | 230,917 |
31,057 | 1 | MCBC Holdings, Inc. | 951,897 |
37,621 | Murphy USA, Inc. | 11,550,776 | |
96,344 | 1,2 | Red Robin Gourmet Burgers | 1,401,805 |
7,853 | Red Rock Resorts, Inc. | 380,871 | |
592,475 | 1 | Rush Street Interactive, Inc. | 2,269,179 |
2,723 | 1 | SeaWorld Entertainment, Inc. | 150,773 |
11,788 | 1 | Shake Shack, Inc. | 915,456 |
74,890 | Texas Roadhouse, Inc. | 8,353,979 | |
77,879 | Upbound Group, Inc. | 2,696,950 | |
19,392 | 1 | Visteon Corp. | 2,988,113 |
40,581 | Wingstop, Inc. | 6,841,145 | |
222,627 | 1,2 | WW International, Inc. | 2,593,605 |
TOTAL | 59,201,498 | ||
Consumer Staples— 5.4% | |||
59,121 | 1 | Bellring Brands, Inc. | 2,125,400 |
71,820 | Cal-Maine Foods, Inc. | 3,317,366 | |
7,404 | Coca-Cola Bottling Co. | 4,689,768 | |
95,831 | 1 | elf Beauty, Inc. | 11,185,394 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Consumer Staples— continued | |||
22,387 | Energizer Holdings, Inc. | $ 799,216 | |
11,887 | Natural Grocers by Vitamin Cottage, Inc. | 147,993 | |
106,572 | 1 | Sprouts Farmers Market, Inc. | 4,182,951 |
31,456 | Turning Point Brands, Inc. | 750,226 | |
170,475 | 1 | Vital Farms, Inc. | 1,994,557 |
TOTAL | 29,192,871 | ||
Energy— 5.8% | |||
25,032 | 1 | Callon Petroleum Corp. | 940,202 |
4,385 | CONSOL Energy, Inc. | 326,770 | |
17,701 | 1 | Dorian LPG Ltd. | 526,428 |
302,821 | Equitrans Midstream Corp. | 3,140,254 | |
69,054 | Liberty Energy, Inc. | 1,137,319 | |
141,787 | 1 | Oceaneering International, Inc. | 3,183,118 |
39,194 | PBF Energy, Inc. | 1,859,363 | |
21,130 | SM Energy Co. | 766,808 | |
163,558 | 1 | US Silica Holdings, Inc. | 2,127,890 |
80,922 | 1 | Vital Energy, Inc. | 4,271,063 |
155,782 | 1 | Weatherford International PLC | 12,945,484 |
TOTAL | 31,224,699 | ||
Financials— 6.3% | |||
296,022 | 1 | AvidXchange Holdings, Inc. | 3,673,633 |
7,543 | Brightsphere Investment Group, Inc. | 160,515 | |
111,290 | 1 | Cantaloupe, Inc. | 858,046 |
5,216 | 1 | Coastal Financial Corp. | 235,607 |
22,728 | 1 | Flywire Corp. | 775,934 |
441,526 | 1 | Green Dot Corp. | 8,631,833 |
12,161 | Hometrust Bancshares, Inc. | 295,634 | |
13,340 | Kinsale Capital Group, Inc. | 4,970,884 | |
44,886 | 1 | LendingTree, Inc. | 1,095,219 |
19,203 | 1 | NerdWallet, Inc. | 215,266 |
101,788 | 1 | PROG Holdings, Inc. | 4,130,557 |
164,442 | 1 | Remitly Global, Inc. | 3,170,442 |
12,464 | RLI Corp. | 1,662,822 | |
276,489 | 1 | SelectQuote, Inc. | 522,564 |
244,176 | 1 | StoneCo Ltd. | 3,538,110 |
TOTAL | 33,937,066 | ||
Health Care— 22.4% | |||
26,307 | 1 | Acadia Pharmaceuticals, Inc. | 769,217 |
316,008 | 1 | ADMA Biologics, Inc. | 1,311,433 |
908,352 | 1,2 | Akebia Therapeutics, Inc. | 1,516,948 |
21,063 | 1,2 | Aldeyra Therapeutics, Inc. | 170,926 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Health Care— continued | |||
211,290 | 1 | Alector, Inc. | $ 1,449,449 |
108,029 | 1 | Alkermes, Inc. | 3,163,089 |
45,453 | 1 | Alphatec Holdings, Inc. | 803,155 |
21,679 | 1 | AMN Healthcare Services, Inc. | 2,322,905 |
99,997 | 1 | Amphastar Pharmaceuticals, Inc. | 6,068,818 |
341,858 | 1,2 | Assembly Biosciences, Inc. | 379,462 |
175,774 | 1 | Atea Pharmaceuticals, Inc. | 602,905 |
8,882 | 1,2 | Biomea Fusion, Inc. | 197,624 |
126,649 | 1 | Bridgebio Pharma, Inc. | 4,433,981 |
93,445 | 1 | Catalyst Pharmaceutical Partners, Inc. | 1,292,344 |
749,236 | 1 | Codexis, Inc. | 2,697,250 |
38,333 | 1 | Collegium Pharmaceutical, Inc. | 872,459 |
251,666 | 1 | Community Health Systems, Inc. | 1,104,814 |
164,178 | 1 | Cross Country Healthcare, Inc. | 4,235,792 |
7,537 | Ensign Group, Inc. | 730,109 | |
41,261 | 1,2 | EyePoint Pharmaceuticals, Inc. | 515,762 |
949,269 | 1 | Fate Therapeutics, Inc. | 3,920,481 |
7,934 | 1 | Glaukos Corp. | 612,029 |
417,564 | 1,2 | Gossamer Bio, Inc. | 563,711 |
12,941 | 1 | Haemonetics Corp. | 1,193,678 |
222,566 | 1 | Hims & Hers Health, Inc. | 1,996,417 |
109,924 | 1 | Innovage Holding Corp. | 791,453 |
5,576 | 1 | Inspire Medical Systems, Inc. | 1,604,829 |
103,854 | 1 | Intercept Group, Inc. | 1,121,623 |
31,381 | 1 | Ironwood Pharmaceuticals, Inc. | 348,015 |
34,722 | 1 | Lantheus Holdings, Inc. | 3,003,106 |
32,554 | 1 | Ligand Pharmaceuticals, Inc., Class B | 2,178,839 |
55,786 | 1 | Livanova PLC | 3,260,692 |
238,413 | 1 | MacroGenics, Inc. | 1,137,230 |
112,244 | 1 | Marinus Pharmaceuticals, Inc. | 1,194,276 |
4,794 | 1 | Medpace Holdings, Inc. | 1,213,697 |
440,927 | 1 | MiMedx Group, Inc. | 3,558,281 |
5,403 | 1 | Morphic Holding, Inc. | 306,512 |
353,575 | 1 | NextCure, Inc. | 608,149 |
378,626 | 1 | NGM Biopharmaceuticals, Inc. | 897,344 |
213,303 | 1,2 | Novavax, Inc. | 1,979,452 |
24,428 | 1 | NuVasive, Inc. | 1,006,678 |
53,932 | 1 | Omnicell, Inc. | 3,405,806 |
243,309 | 1 | OptimizeRX Corp | 3,394,161 |
90,300 | 1 | Organogenesis Holdings, Inc. | 385,581 |
68,712 | 1 | Owens & Minor, Inc. | 1,322,019 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Health Care— continued | |||
33,255 | 1 | Pacific Biosciences of California Inc. | $ 439,299 |
103,011 | 1 | Pacira BioSciences, Inc. | 3,744,450 |
46,423 | 1 | PetIQ, Inc. | 777,121 |
82,628 | 1 | Phathom Pharmaceuticals, Inc. | 1,256,772 |
107,112 | 1 | Point Biopharma Global, Inc. | 957,581 |
360,562 | 1,2 | Praxis Precision Medicines Inc. | 356,992 |
93,650 | 1,2 | Privia Health Group, Inc. | 2,614,708 |
37,193 | 1 | Protagonist Therapeutics, Inc. | 721,544 |
179,118 | 1 | Puma Biotechnology, Inc. | 648,407 |
112,001 | 1 | Relmada Therapeutics, Inc. | 293,443 |
121,478 | 1 | RxSight, Inc. | 4,053,721 |
22,077 | 1 | SAGE Therapeutics, Inc. | 765,630 |
440,282 | 1 | Sangamo BioSciences, Inc. | 578,971 |
11,451 | 1 | Shockwave Medical, Inc. | 2,984,131 |
133,622 | 1 | SI-BONE, Inc. | 3,442,103 |
1,504,454 | Siga Technologies, Inc. | 8,635,566 | |
9,351 | 1 | Staar Surgical Co. | 512,154 |
216,627 | 1,2 | Tabula Rasa HealthCare, Inc. | 1,739,515 |
177,992 | 1 | Tactile Systems Technology, Inc. | 4,077,797 |
157,566 | 1 | The Joint Corp. | 2,127,141 |
9,600 | 1 | TransMedics Group, Inc. | 894,528 |
111,253 | 1 | Vanda Pharmaceuticals, Inc. | 643,042 |
3,703 | 1 | Vaxcyte, Inc. | 177,966 |
22,626 | 1 | Vir Biotechnology, Inc. | 318,574 |
296,109 | 1 | Voyager Therapeutics, Inc. | 2,759,736 |
TOTAL | 121,163,393 | ||
Industrials— 19.6% | |||
158,704 | 1 | ACV Auctions, Inc. | 2,775,733 |
5,595 | 1 | Allegiant Travel Co. | 692,102 |
40,295 | 1 | APi Group Corp. | 1,158,884 |
46,073 | Apogee Enterprises, Inc. | 2,281,996 | |
21,149 | 1 | Array Technologies, Inc. | 402,888 |
2,246 | 1 | ASGN, Inc. | 171,415 |
75,262 | 1 | Atkore, Inc. | 11,941,822 |
8,512 | 1 | Beacon Roofing Supply, Inc. | 729,223 |
30,170 | Boise Cascade Co. | 3,122,293 | |
8,880 | 1 | CBIZ, Inc. | 469,663 |
41,939 | 1 | Cimpress PLC | 2,914,761 |
10,884 | Comfort Systems USA, Inc. | 1,893,490 | |
36,933 | Emcor Group, Inc. | 7,942,072 | |
9,301 | EnerSys, Inc. | 1,007,484 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Industrials— continued | |||
327,162 | 1 | Enviri Corp. | $ 3,085,138 |
40,111 | 1 | Exlservice Holding, Inc. | 5,653,645 |
2,044 | Exponent, Inc. | 183,102 | |
67,935 | 1,2 | Fluence Energy, Inc. | 1,986,419 |
4,998 | 1,2 | Fluor Corp. | 154,838 |
121,613 | 1 | Forrester Research, Inc. | 3,875,806 |
78,222 | 1 | Franklin Covey Co. | 3,727,278 |
99,741 | 1 | GMS, Inc. | 7,349,914 |
664,701 | GrafTech International Ltd. | 3,509,621 | |
117,572 | Healthcare Services Group, Inc. | 1,482,583 | |
96,341 | Heidrick & Struggles International, Inc. | 2,627,219 | |
21,415 | 1 | HireRight Holdings Corp. | 229,355 |
32,517 | 1 | Huron Consulting Group, Inc. | 3,075,133 |
2,375 | ICF International, Inc. | 279,276 | |
1,370 | Insperity, Inc. | 161,181 | |
242,288 | 1 | JELD-WEN Holding, Inc. | 4,315,149 |
2,295 | John Bean Technologies Corp. | 283,685 | |
33,946 | KForce Com, Inc. | 2,153,534 | |
141,916 | 1 | Legalzoom.com, Inc. | 2,168,477 |
2,409 | 1 | Masonite International Corp. | 251,861 |
185,056 | 1 | Mistras Group, Inc. | 1,432,333 |
50,760 | 1 | MRC Global, Inc. | 573,080 |
12,466 | 1 | MYR Group, Inc. | 1,777,153 |
24,836 | 1,2 | NEXTracker, Inc. | 1,051,805 |
5,587 | 1 | Proto Labs, Inc. | 185,209 |
2,556 | Tennant Co. | 205,093 | |
104,141 | Terex Corp. | 6,105,787 | |
4,926 | TTEC Holdings, Inc. | 169,651 | |
11,840 | Universal Truckload Services, Inc. | 368,106 | |
204,736 | 1 | Upwork, Inc. | 2,135,397 |
24,053 | Veritiv Corp. | 3,370,547 | |
21,142 | Watts Industries, Inc., Class A | 3,943,617 | |
7,750 | 1 | Willdan Group, Inc. | 156,395 |
TOTAL | 105,531,213 | ||
Information Technology— 20.2% | |||
355,682 | 1 | 8x8, Inc. | 1,685,933 |
61,935 | A10 Networks, Inc. | 961,231 | |
35,987 | 1 | Alarm.com Holdings, Inc. | 1,986,842 |
39,374 | 1 | Altair Engineering, Inc. | 2,950,688 |
44,249 | American Software, Inc., Class A | 510,191 | |
6,235 | 1 | AppFolio, Inc. | 1,125,979 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Information Technology— continued | |||
205,853 | 1 | Arlo Technologies, Inc. | $ 2,338,490 |
191,388 | 1 | AvePoint, Inc. | 1,186,606 |
4,261 | 1 | Axcelis Technologies, Inc. | 854,245 |
1,481 | Badger Meter, Inc. | �� 243,832 | |
1,800 | Belden, Inc. | 173,952 | |
28,453 | 1 | Blackbaud, Inc. | 2,146,779 |
47,678 | 1 | Box, Inc. | 1,489,938 |
376,126 | 1 | Brightcove, Inc. | 1,688,806 |
51,617 | 1 | Ceva, Inc. | 1,401,918 |
57,105 | 1,2 | Coda Octopus Group, Inc. | 495,100 |
19,263 | 1 | Commvault Systems, Inc. | 1,501,166 |
51,559 | 1,2 | Digitalocean Holdings, Inc. | 2,553,202 |
99,541 | 1 | Everbridge, Inc. | 3,069,844 |
57,976 | 1 | Extreme Networks, Inc. | 1,541,582 |
155,790 | 1 | Freshworks, Inc. | 2,907,041 |
55,870 | 1 | Harmonic Lightwaves, Inc. | 833,580 |
33,223 | Information Services Group, Inc. | 171,098 | |
77,304 | 1 | Intapp, Inc. | 3,174,102 |
33,800 | 1 | Live Oak Acquisition Corp. II | 357,604 |
481,456 | 1 | LivePerson, Inc. | 2,286,916 |
114,982 | 1 | MaxLinear, Inc. | 2,836,606 |
80,056 | 1 | Mitek Systems, Inc. | 817,372 |
152,923 | 1 | Model N, Inc. | 5,095,394 |
370,183 | 1 | ON24, Inc. | 3,276,120 |
21,019 | 1 | Photronics, Inc. | 555,953 |
66,324 | 1 | Q2 Holdings, Inc. | 2,352,512 |
39,376 | 1 | Qualys, Inc. | 5,465,389 |
123,598 | 1 | Rimini Street, Inc. | 336,187 |
19,619 | 1 | Rogers Corp. | 3,307,960 |
150,977 | Sapiens International Corp. NV | 4,067,320 | |
39,534 | 1 | Secureworks Corp. | 303,621 |
52,101 | 1 | SMART Global Holdings, Inc. | 1,385,887 |
255,382 | 1 | Sprinklr, Inc. | 3,585,563 |
9,093 | 1 | SPS Commerce, Inc. | 1,640,286 |
179,761 | 1 | Squarespace, Inc. | 5,957,280 |
27,511 | 1 | Synaptics, Inc. | 2,484,518 |
302,575 | 1 | Telos Corp. | 759,463 |
656,187 | 1 | Unisys Corp. | 3,569,657 |
212,590 | 1 | Varonis Systems, Inc. | 6,101,333 |
163,566 | 1 | Weave Communications, Inc. | 1,962,792 |
34,653 | 1 | Workiva, Inc. | 3,648,614 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Information Technology— continued | |||
132,673 | Xperi Holding Corp. | $ 1,594,729 | |
829,577 | 1 | Yext, Inc. | 8,063,488 |
27,985 | 1 | Zuora, Inc. | 328,264 |
TOTAL | 109,132,973 | ||
Materials— 3.2% | |||
44,784 | 1 | ATI, Inc. | 2,135,301 |
32,467 | Commercial Metals Corp. | 1,857,762 | |
72,548 | 1 | Constellium SE | 1,384,941 |
22,295 | Koppers Holdings, Inc. | 853,007 | |
39,358 | Kronos Worldwide, Inc. | 367,997 | |
152,957 | 1 | LSB Industries, Inc. | 1,708,530 |
17,793 | Myers Industries, Inc. | 348,921 | |
158,275 | 1 | O-I Glass, Inc. | 3,633,994 |
13,454 | 2 | Orion S.A. | 294,912 |
86,100 | 1,3 | Rentech, Inc. | 0 |
43,137 | Ryerson Holding Corp. | 1,832,891 | |
66,818 | Warrior Met Coal, Inc. | 2,956,696 | |
TOTAL | 17,374,952 | ||
Real Estate— 2.5% | |||
63,133 | Industrial Logistics Properties Trust | 267,684 | |
328,386 | Newmark Group, Inc. | 2,272,431 | |
427,150 | 1,2 | Redfin Corp. | 6,398,707 |
183,674 | RMR Group, Inc./The | 4,331,033 | |
TOTAL | 13,269,855 | ||
Utilities— 0.5% | |||
108,355 | Clearway Energy, Inc. | 2,673,118 | |
2,987 | Otter Tail Corp. | 241,977 | |
TOTAL | 2,915,095 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $444,387,208) | 536,002,258 | ||
INVESTMENT COMPANIES— 3.7% | |||
14,815,356 | Federated Hermes Government Obligations Fund, Premier Shares, 5.16%4 | 14,815,356 | |
4,937,106 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 5.32%4 | 4,936,612 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $19,751,898) | 19,751,968 | ||
TOTAL INVESTMENT IN SECURITIES—103.0% (IDENTIFIED COST $464,139,106)5 | 555,754,226 | ||
OTHER ASSETS AND LIABILITIES - NET—(3.0)%6 | (15,968,768) | ||
TOTAL NET ASSETS—100% | $539,785,458 |
Affiliated | Value as of 7/31/2022 | Purchases at Cost* | Proceeds from Sales* |
Health Care: | |||
Alector, Inc.** | $8,176,082 | $828,972 | $(6,295,051) |
Amphastar Pharmaceuticals, Inc. | $1,033,497 | $2,746,927 | $(539,725) |
Siga Technologies, Inc. | $— | $10,282,190 | $(454,971) |
Information Technology: | |||
Brightcove, Inc.** | $5,844,048 | $— | $(3,251,310) |
Affiliated issuers no longer in the portfolio at period end | $3,247,541 | $1,333,475 | $(5,271,275) |
TOTAL OF AFFILIATED COMPANIES TRANSACTIONS | $18,301,168 | $15,191,564 | $(15,812,332) |
Change in Unrealized Appreciation/ (Depreciation)* | Net Realized Gain/ (Loss)* | Value as of 7/31/2023 | Shares Held as of 7/31/2023 | Dividend Income* |
$3,043,646 | $(4,304,200) | $1,449,449 | 211,290 | $— |
$2,540,798 | $287,321 | $6,068,818 | 99,997 | $— |
$(805,208) | $(386,445) | $8,635,566 | 1,504,454 | $3,189,432 |
$1,709,678 | $(2,613,610) | $1,688,806 | 376,126 | $— |
$1,697,165 | $(1,006,906) | $— | — | $— |
$8,186,079 | $(8,023,840) | $17,842,639 | 2,191,867 | $3,189,432 |
* | A portion of the amount shown may have been recorded when the Fund no longer had ownership of at least 5% of the voting shares. |
** | At July 31, 2023, 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 7/31/2022 | $25,008,151 | $8,511,854 | $33,520,005 |
Purchases at Cost | $147,766,687 | $144,247,066 | $292,013,753 |
Proceeds from Sales | $(157,959,482) | $(147,826,500) | $(305,785,982) |
Change in Unrealized Appreciation/ Depreciation | $— | $(779) | $(779) |
Net Realized Gain/(Loss) | $— | $4,971 | $4,971 |
Value as of 7/31/2023 | $14,815,356 | $4,936,612 | $19,751,968 |
Shares Held as of 7/31/2023 | 14,815,356 | 4,937,106 | 19,752,462 |
Dividend Income | $567,109 | $399,933 | $967,042 |
* | 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 | Market quotations and price valuations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established by and under the supervision of the Fund’s Adviser acting through its Valuation Committee (“Valuation Committee”). |
4 | 7-day net yield. |
5 | The cost of investments for federal tax purposes amounts to $470,372,968. |
6 | 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, 2023, in valuing the Fund’s assets carried at fair value:
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | $525,187,155 | $— | $0 | $525,187,155 |
International | 10,815,103 | — | — | 10,815,103 |
Investment Companies | 19,751,968 | — | — | 19,751,968 |
TOTAL SECURITIES | $555,754,226 | $— | $0 | $555,754,226 |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $20.80 | $33.76 | $23.89 | $23.30 | $25.67 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.03) | (0.04) | (0.15) | (0.07) | (0.08) |
Net realized and unrealized gain (loss) | 2.24 | (4.34) | 10.16 | 0.66 | (0.84) |
Total From Investment Operations | 2.21 | (4.38) | 10.01 | 0.59 | (0.92) |
Less Distributions: | |||||
Distributions from net realized gain | (0.63) | (8.58) | (0.14) | — | (1.45) |
Net Asset Value, End of Period | $22.38 | $20.80 | $33.76 | $23.89 | $23.30 |
Total Return2 | 11.18% | (18.45)% | 42.03% | 2.53% | (2.83)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.13% | 1.13% | 1.13% | 1.13% | 1.13% |
Net investment income (loss) | (0.16)% | (0.16)% | (0.50)% | (0.32)% | (0.36)% |
Expense waiver/reimbursement4 | 0.24% | 0.21% | 0.23% | 0.30% | 0.29% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $80,993 | $88,900 | $129,226 | $92,389 | $82,170 |
Portfolio turnover5 | 138% | 140% | 163% | 227% | 142% |
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 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $16.75 | $28.99 | $20.69 | $20.32 | $22.77 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | (0.16) | (0.21) | (0.33) | (0.21) | (0.23) |
Net realized and unrealized gain (loss) | 1.77 | (3.45) | 8.77 | 0.58 | (0.77) |
Total From Investment Operations | 1.61 | (3.66) | 8.44 | 0.37 | (1.00) |
Less Distributions: | |||||
Distributions from net realized gain | (0.63) | (8.58) | (0.14) | — | (1.45) |
Net Asset Value, End of Period | $17.73 | $16.75 | $28.99 | $20.69 | $20.32 |
Total Return2 | 10.27% | (19.14)% | 40.93% | 1.82% | (3.58)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.96% | 1.96% | 1.88% | 1.88% | 1.88% |
Net investment income (loss) | (0.99)% | (0.99)% | (1.25)% | (1.07)% | (1.12)% |
Expense waiver/reimbursement4 | 0.12% | 0.12% | 0.15% | 0.20% | 0.29% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $18,262 | $19,373 | $28,084 | $17,481 | $22,639 |
Portfolio turnover5 | 138% | 140% | 163% | 227% | 142% |
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 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $22.27 | $35.50 | $25.05 | $24.37 | $26.71 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.02 | 0.02 | (0.08) | (0.02) | (0.02) |
Net realized and unrealized gain (loss) | 2.42 | (4.67) | 10.67 | 0.70 | (0.87) |
Total From Investment Operations | 2.44 | (4.65) | 10.59 | 0.68 | (0.89) |
Less Distributions: | |||||
Distributions from net investment income | (0.01) | — | — | — | — |
Distributions from net realized gain | (0.63) | (8.58) | (0.14) | — | (1.45) |
Total Distributions | (0.64) | (8.58) | (0.14) | — | (1.45) |
Net Asset Value, End of Period | $24.07 | $22.27 | $35.50 | $25.05 | $24.37 |
Total Return2 | 11.49% | (18.29)% | 42.40% | 2.79% | (2.60)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.88% | 0.88% | 0.88% | 0.88% | 0.88% |
Net investment income (loss) | 0.09% | 0.08% | (0.25)% | (0.07)% | (0.10)% |
Expense waiver/reimbursement4 | 0.20% | 0.18% | 0.16% | 0.19% | 0.25% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $258,459 | $304,721 | $428,578 | $354,204 | $455,597 |
Portfolio turnover5 | 138% | 140% | 163% | 227% | 142% |
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 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended July 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $22.29 | $35.51 | $25.06 | $24.36 | $26.70 |
Income From Investment Operations: | |||||
Net investment income (loss)1 | 0.02 | 0.02 | (0.08) | (0.02) | (0.02) |
Net realized and unrealized gain (loss) | 2.42 | (4.66) | 10.67 | 0.72 | (0.87) |
Total From Investment Operations | 2.44 | (4.64) | 10.59 | 0.70 | (0.89) |
Less Distributions: | |||||
Distributions from net investment income | (0.01) | — | — | — | — |
Distributions from net realized gain | (0.63) | (8.58) | (0.14) | — | (1.45) |
Total Distributions | (0.64) | (8.58) | (0.14) | — | (1.45) |
Net Asset Value, End of Period | $24.09 | $22.29 | $35.51 | $25.06 | $24.36 |
Total Return2 | 11.49% | (18.24)% | 42.38% | 2.87% | (2.60)% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% |
Net investment income (loss) | 0.11% | 0.10% | (0.24)% | (0.07)% | (0.07)% |
Expense waiver/reimbursement4 | 0.12% | 0.09% | 0.09% | 0.09% | 0.15% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $182,071 | $256,060 | $309,117 | $283,103 | $333,059 |
Portfolio turnover5 | 138% | 140% | 163% | 227% | 142% |
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 | Securities that mature are considered sales for purposes of this calculation. |
July 31, 2023
Assets: | |
Investment in securities, at value including $14,768,990 of securities loaned and $37,594,607 of investments in affiliated holdings* (identified cost $464,139,106, including $37,621,166 of identified cost in affiliated holdings) | $555,754,226 |
Income receivable | 80,972 |
Income receivable from affiliated holdings | 35,489 |
Receivable for investments sold | 5,686,906 |
Receivable for shares sold | 439,763 |
Total Assets | 561,997,356 |
Liabilities: | |
Payable for investments purchased | 4,411,465 |
Payable for shares redeemed | 2,703,741 |
Payable to bank | 26,331 |
Payable for collateral due to broker for securities lending (Note 2) | 14,815,356 |
Payable for investment adviser fee (Note 5) | 10,091 |
Payable for administrative fee (Note 5) | 1,140 |
Payable for Directors’/Trustees’ fees (Note 5) | 143 |
Payable for distribution services fee (Note 5) | 11,152 |
Payable for other service fees (Notes 2 and 5) | 44,801 |
Accrued expenses (Note 5) | 187,678 |
Total Liabilities | 22,211,898 |
Net assets for 22,944,470 shares outstanding | $539,785,458 |
Net Assets Consist of: | |
Paid-in capital | $515,573,182 |
Total distributable earnings (loss) | 24,212,276 |
Total Net Assets | $539,785,458 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($80,992,788 ÷ 3,619,153 shares outstanding), no par value, unlimited shares authorized | $22.38 |
Offering price per share (100/94.50 of $22.38) | $23.68 |
Redemption proceeds per share | $22.38 |
Class C Shares: | |
Net asset value per share ($18,262,281 ÷ 1,030,014 shares outstanding), no par value, unlimited shares authorized | $17.73 |
Offering price per share | $17.73 |
Redemption proceeds per share (99.00/100 of $17.73) | $17.55 |
Institutional Shares: | |
Net asset value per share ($258,459,139 ÷ 10,737,207 shares outstanding), no par value, unlimited shares authorized | $24.07 |
Offering price per share | $24.07 |
Redemption proceeds per share | $24.07 |
Class R6 Shares: | |
Net asset value per share ($182,071,250 ÷ 7,558,096 shares outstanding), no par value, unlimited shares authorized | $24.09 |
Offering price per share | $24.09 |
Redemption proceeds per share | $24.09 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31, 2023
Investment Income: | |
Dividends (including $3,579,515 received from affiliated holdings* and net of foreign taxes withheld of $10,091) | $5,270,065 |
Net income on securities loaned (includes $576,959 earned from affiliated holdings related to cash collateral balances*) (Note 2) | 459,962 |
TOTAL INCOME | 5,730,027 |
Expenses: | |
Investment adviser fee (Note 5) | 4,682,148 |
Administrative fee (Note 5) | 461,733 |
Custodian fees | 82,132 |
Transfer agent fees (Note 2) | 588,611 |
Directors’/Trustees’ fees (Note 5) | 4,665 |
Auditing fees | 29,501 |
Legal fees | 11,666 |
Portfolio accounting fees | 138,049 |
Distribution services fee (Note 5) | 131,703 |
Other service fees (Notes 2 and 5) | 243,057 |
Share registration costs | 69,472 |
Printing and postage | 83,576 |
Miscellaneous (Note 5) | 32,998 |
TOTAL EXPENSES | 6,559,311 |
Waiver and Reimbursements: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (707,094) |
Reimbursement of other operating expenses (Notes 2 and 5) | (301,619) |
TOTAL WAIVER AND REIMBURSEMENTS | (1,008,713) |
Net expenses | 5,550,598 |
Net investment income | 179,429 |
Realized and Unrealized Gain (Loss) on Investments: | |
Net realized loss on investments (including net realized loss of $(8,018,869) on sales of investments in affiliated holdings*) | (57,004,841) |
Net change in unrealized depreciation of investments (including net change in unrealized depreciation of $8,185,300 on investments in affiliated holdings*) | 113,583,742 |
Net realized and unrealized gain (loss) on investments | 56,578,901 |
Change in net assets resulting from operations | $56,758,330 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended July 31 | 2023 | 2022 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $179,429 | $154,388 |
Net realized gain (loss) | (57,004,841) | 28,024,914 |
Net change in unrealized appreciation/depreciation | 113,583,742 | (181,648,487) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 56,758,330 | (153,469,185) |
Distributions to Shareholders: | ||
Class A Shares | (2,603,153) | (32,079,796) |
Class C Shares | (679,479) | (7,866,562) |
Institutional Shares | (7,667,185) | (99,337,616) |
Class R6 Shares | (7,065,520) | (72,484,125) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (18,015,337) | (211,768,099) |
Share Transactions: | ||
Proceeds from sale of shares | 108,452,150 | 271,272,721 |
Net asset value of shares issued to shareholders in payment of distributions declared | 16,710,898 | 192,640,426 |
Cost of shares redeemed | (293,174,418) | (324,627,058) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (168,011,370) | 139,286,089 |
Change in net assets | (129,268,377) | (225,951,195) |
Net Assets: | ||
Beginning of period | 669,053,835 | 895,005,030 |
End of period | $539,785,458 | $669,053,835 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $144,418 | $(98,708) |
Class C Shares | 22,767 | (81) |
Institutional Shares | 332,467 | (202,830) |
Class R6 Shares | 88,959 | — |
TOTAL | $588,611 | $(301,619) |
Other Service Fees Incurred | |
Class A Shares | $199,414 |
Class C Shares | 43,643 |
TOTAL | $243,057 |
Fair Value of Securities Loaned | Collateral Received |
$14,768,990 | $14,815,356 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 364,732 | $7,410,545 | 734,706 | $19,688,546 |
Shares issued to shareholders in payment of distributions declared | 118,380 | 2,245,671 | 985,701 | 26,130,926 |
Shares redeemed | (1,138,869) | (23,147,646) | (1,273,380) | (32,473,563) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | (655,757) | $(13,491,430) | 447,027 | $13,345,909 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 148,712 | $2,428,011 | 128,708 | $2,774,689 |
Shares issued to shareholders in payment of distributions declared | 44,306 | 669,467 | 359,807 | 7,725,066 |
Shares redeemed | (319,656) | (5,189,606) | (300,582) | (6,470,668) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (126,638) | $(2,092,128) | 187,933 | $4,029,087 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 2,583,227 | $56,282,758 | 5,702,540 | $156,084,766 |
Shares issued to shareholders in payment of distributions declared | 357,614 | 7,287,807 | 3,232,168 | 91,631,959 |
Shares redeemed | (5,884,345) | (128,470,285) | (7,327,971) | (197,657,381) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (2,943,504) | $(64,899,720) | 1,606,737 | $50,059,344 |
Year Ended 7/31/2023 | Year Ended 7/31/2022 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,965,413 | $42,330,836 | 3,421,932 | $92,724,720 |
Shares issued to shareholders in payment of distributions declared | 319,036 | 6,507,953 | 2,367,859 | 67,152,475 |
Shares redeemed | (6,214,536) | (136,366,881) | (3,005,937) | (88,025,446) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | (3,930,087) | $(87,528,092) | 2,783,854 | $71,851,749 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (7,655,986) | $(168,011,370) | 5,025,551 | $139,286,089 |
2023 | 2022 | |
Ordinary income1 | $270,788 | $132,977,030 |
Long-term capital gains | $17,744,549 | $78,791,069 |
1 | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Undistributed ordinary income | $187,325 |
Net unrealized appreciation | $85,381,258 |
Capital loss carryforwards | $(61,356,307) |
TOTAL | $24,212,276 |
Short-Term | Long-Term | Total |
$61,356,307 | $— | $61,356,307 |
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 | $131,703 |
Other Service Fees
Purchases | $794,645,563 |
Sales | $970,707,679 |
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/ernstyoungsig.jpg)
September 25, 2023
Beginning Account Value 2/1/2023 | Ending Account Value 7/31/2023 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,051.70 | $5.75 |
Class C Shares | $1,000 | $1,047.30 | $9.95 |
Institutional Shares | $1,000 | $1,052.90 | $4.48 |
Class R6 Shares | $1,000 | $1,052.90 | $4.43 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,019.19 | $5.66 |
Class C Shares | $1,000 | $1,015.08 | $9.79 |
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 | 1.96% |
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; Director and 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, and Federated MDTA LLC; Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and CEO of Passport Research, Ltd.; Director 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: 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.; Lead Director, Member of the Audit and Nominating and Corporate Governance Committees, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 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 (natural gas). 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 Associate General Secretary of the Diocese of Pittsburgh, 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 (natural gas). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint Francis University. |
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. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber); and Director, The Golisano Children’s Museum of Naples, Florida. |
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; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors, Duquesne University (Retired). Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors and 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. Ms. Reilly currently serves as a member of the Board of Directors of UPMC Mercy 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 |
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; 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). |
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. |
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. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
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/0001623632-23-001324/edelivery.jpg)
![](https://capedge.com/proxy/N-CSR/0001623632-23-001324/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/0001623632-23-001324/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 2023 – $155,705
Fiscal year ended 2022 - $138,900
(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2023 - $0
Fiscal year ended 2022 - $0
Amount requiring approval of the registrant’s Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(c) Tax Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2023 - $0
Fiscal year ended 2022 - $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 2023 - $0
Fiscal year ended 2022 - $0
Amount requiring approval of the registrant’s Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $67,725 and $63,165 respectively. Fiscal year ended 2023- Service fees for analysis of potential Passive Foreign Investment Company holdings. Fiscal year ended 2022- 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 2023 – 0%
Fiscal year ended 2022 - 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 2023 – 0%
Fiscal year ended 2022 – 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 2023 – 0%
Fiscal year ended 2022 – 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 2023 - $237,698
Fiscal year ended 2022 - $200,134
(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 period covered by this 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 25, 2023
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 25, 2023
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date September 25, 2023