United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-23174
(Investment Company Act File Number)
Federated Hermes Project and Trade Finance Tender Fund
______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 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: 03/31/23
Date of Reporting Period: Six months ended 09/30/22
The amendment is being filed solely to correct a typographical error in the Registrant’s name on the principal financial officer’s certification filed pursuant to Item 13(a)(2) of Form N-CSR, and there are no other changes to the Registrant’s original Form N-CSRS filing.
Item 1. | Reports to Stockholders |
Federated Hermes Project and Trade Finance Tender Fund
Dear Valued Shareholder,
Security Type | Percentage of Total Net Assets |
Trade Finance Agreements | 79.5% |
Derivative Contracts2 | 1.3% |
Cash Equivalents3 | 19.3% |
Other Assets and Liabilities—Net4 | (0.1)% |
TOTAL | 100% |
1 | See the Fund’s Prospectus for a description of the principal types of securities in which the Fund invests. |
2 | 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. |
3 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. |
4 | Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities. |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— 79.5% | ||||
Automotive— 1.3% | |||||
$ 7,320,683 | 2 | VINFAST Trading and Production LLC, 6.266% (3-month USLIBOR +3.500%), 4/30/2023 | 2/16/2021- 7/2/2021 | $ 7,289,791 | $ 7,303,560 |
Banking— 7.9% | |||||
7,500,000 | 2 | Agrobank, 5.051% (6-month USLIBOR +3.500%), 10/14/2022 | 10/14/2021 | 7,500,000 | 7,488,355 |
9,000,000 | Banco Santander Brasil SA, 3.244%, 1/23/2023 | 4/27/2022 | 9,000,000 | 8,996,653 | |
EUR 7,800,000 | Denizbank AS, 1.739%, 11/21/2022 | 5/4/2022 | 8,182,067 | 7,602,983 | |
6,000,000 | 2 | The National Bank for Foreign Economic Activity of the Republic of Uzbekistan (“NBU”), 3.649% (6-month EURIBOR +3.400%), 6/18/2024 | 6/25/2021 | 7,167,284 | 5,768,660 |
$ 6,400,000 | Uzbek Industrial and Construction Bank ATB, 4.750%, 7/13/2023 | 7/13/2021 | 6,400,000 | 6,159,967 | |
EUR 8,500,000 | Yapi ve Kredi Bankasi A.S., 1.656%, 11/10/2022 | 5/19/2022 | 8,903,323 | 8,292,460 | |
TOTAL | 44,309,078 | ||||
Basic Industry - Forestry/ Paper— 0.0% | |||||
$ 300,000 | 2 | Bahia Cellulose, 5.993% (1-month USLIBOR +3.000%), 7/18/2023 | 11/20/2017 | 300,450 | 300,000 |
Basic Industry - Metals/Mining Excluding Steel— 5.6% | |||||
7,000,000 | 2 | China Hongqiao Group Ltd., 7.474% (1-month USLIBOR +3.800%), 3/30/2024 | 6/3/2021 | 8,000,000 | 6,910,916 |
5,500,000 | 2 | Harmony Gold Mining Co. Ltd., 4.011% (3-month USLIBOR +3.050%), 6/8/2025 | 7/31/2018- 7/6/2021 | ��5,514,597 | 5,424,544 |
10,000,000 | 2 | PJSC Acron, 4.073% (1-month USLIBOR +1.700%), 5/18/2026 | 11/26/2021 | 10,000,000 | 9,339,658 |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— continued | ||||
Basic Industry - Metals/Mining Excluding Steel— continued | |||||
$ 10,000,000 | 2 | PJSC MMC Norilsk Nickel, 3.843% (SOFR +1.400%), 2/20/2025 | 11/30/2020- 10/22/2021 | $ 9,956,125 | $ 8,485,004 |
900,000 | Tasiast Mauritanie Ltd. SA, 4.545%, 12/15/2027 | 10/15/2020 | 900,000 | 900,000 | |
458,333 | 2 | Uralkali PJSC, 4.654% (1-month USLIBOR +2.200%), 5/20/2025 | 9/9/2020 | 456,042 | 328,922 |
TOTAL | 31,389,044 | ||||
Building & Development— 0.8% | |||||
4,500,000 | 2 | IHS Zambia Ltd., 7.740% (3-month USLIBOR +5.000%), 12/15/2027 | 11/26/2021 | 4,494,250 | 4,338,072 |
Capital Goods - Aerospace & Defense— 0.0% | |||||
74,072 | 2 | Gulf Air BSC, 6.189% (1-month USLIBOR +3.250%), 1/19/2023 | 3/27/2017 | 74,183 | 74,072 |
Consumer Goods - Food - Wholesale— 1.2% | |||||
343,750 | 2 | Ghana Cocoa Board, 6.332% (6-month USLIBOR +4.400%), 11/12/2024 | 5/13/2020- 8/11/2021 | 343,750 | 296,197 |
5,750,000 | 2 | International Beverage Tashkent, 6.731% (3-month USLIBOR +4.500%), 12/29/2026 | 12/28/2021- 3/8/2022 | 5,750,000 | 5,690,843 |
500,000 | 2 | Ulker Biskuvi Sanayi AS, 3.266% (6-month USLIBOR +3.100%), 4/20/2023 | 2/18/2021 | 500,750 | 474,933 |
894,737 | 2,3,4,5 | Vicentin SAIC II, 8.512% (3-month USLIBOR +6.000%), 12/22/2021 | 1/8/2018- 2/21/2018 | 894,737 | 134,211 |
TOTAL | 6,596,184 | ||||
Energy - Exploration & Production— 8.0% | |||||
11,000,000 | 2 | CC Energy Development Ltd., 3.864% (SOFR +3.750%), 7/1/2028 | 8/31/2022 | 11,000,000 | 10,935,347 |
8,000,000 | 2 | Chrysaor E&P Finance Ltd., 5.390% (1-month USLIBOR +3.140%), 11/23/2027 | 8/2/2021 | 7,976,000 | 7,948,969 |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— continued | ||||
Energy - Exploration & Production— continued | |||||
$ 9,511,651 | 2 | FPF005 PTE Ltd. Singapore, Inc., 4.850% (3-month USLIBOR +2.600%), 8/13/2024 | 12/19/2019- 6/16/2022 | $10,581,289 | $ 9,511,651 |
384,675 | Prime Oil and Gas BV, 5.416%, 12/5/2024 | 9/17/2019 | 381,789 | 381,863 | |
384,615 | 2 | SOCAR Energy ’18, 5.066% (12-month USLIBOR +2.200%), 11/8/2023 | 11/26/2019 | 382,885 | 379,083 |
5,000,000 | 2 | SOCAR Energy, 6.938% (6-month USLIBOR +3.450%), 8/11/2026 | 8/11/2021 | 4,957,500 | 4,918,740 |
3,825,605 | 2 | Sonangol Finance Ltd., 6.773% (2-month USLIBOR +4.250%), 12/20/2023 | 9/15/2021 | 4,653,000 | 3,762,544 |
4,700,000 | 2 | Sonangol Finance Ltd., 6.916% (1-month USLIBOR +5.250%), 9/30/2026 | 6/16/2021 | 3,750,527 | 4,546,795 |
2,500,000 | State Oil Co Of The Azer, 6.207%, 2/22/2024 | 5/4/2021 | 2,484,625 | 2,468,340 | |
TOTAL | 44,853,332 | ||||
Energy - Gas Distribution— 2.2% | |||||
12,145,102 | Venture Global Calcasieu Pass LLC, 5.118%, 8/19/2026 | 1/28/2021- 7/18/2022 | 12,126,516 | 12,145,102 | |
Energy - Integrated Energy— 3.0% | |||||
9,000,000 | Puma International Financing SA, 5.870%, 1/20/2023 | 9/30/2019- 9/24/2021 | 8,895,250 | 8,856,138 | |
8,050,125 | 2 | Staatsolie Maatschappij Suriname NV, 8.302% (3-month USLIBOR +5.500%), 1/25/2028 | 6/30/2021 | 8,050,125 | 7,932,351 |
TOTAL | 16,788,489 | ||||
Energy - Oil Refining and Marketing— 12.2% | |||||
9,000,000 | 1 | Curacao Oil (Curoil) NV, 8.506%, 12/23/2022 | 9/30/2022 | 8,831,584 | 8,831,583 |
369,828 | 2 | Dangote, 10.060% (6-month USLIBOR +6.500%), 8/31/2023 | 2/6/2017 | 365,368 | 366,367 |
7,500,000 | Pakistan, Government of, 3.693%, 2/24/2023 | 11/9/2021- 2/28/2022 | 7,500,000 | 7,066,929 |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— continued | ||||
Energy - Oil Refining and Marketing— continued | |||||
EUR 4,233,393 | Societe Natio D Electr Du Sen 2021 Eur Term Loan, 3.916%, 1/16/2023 | 3/31/2022- 9/12/2022 | $ 4,464,410 | $ 3,981,567 | |
$ 3,600,000 | 2 | Trafigura Pte Ltd., 2.457% (1-month USLIBOR +2.000%), 12/9/2022 | 4/21/2022 | 3,600,000 | 3,590,074 |
2,476,400 | 2 | Trafigura Pte Ltd., 3.147% (1-month USLIBOR +2.750%), 3/14/2023 | 9/29/2021 | 2,476,400 | 2,476,400 |
8,146,937 | 2 | Trafigura Pte Ltd., 4.114% (1-month USLIBOR +2.500%), 3/31/2025 | 9/23/2022 | 8,146,937 | 8,146,937 |
4,186,046 | 2 | Trafigura Pte Ltd., 5.000% (3-month USLIBOR +2.750%), 12/30/2022 | 9/21/2021 | 4,186,046 | 4,168,023 |
9,360,000 | 2 | Trafigura Pte Ltd., 5.080% (1-month USLIBOR +2.000%), 9/30/2023 | 3/16/2022 | 9,360,000 | 9,332,575 |
8,592,639 | 2 | Tupi Nordeste SARL, 3.828% (3-month USLIBOR +1.900%), 6/15/2023 | 12/28/2021- 7/21/2022 | 8,463,639 | 8,548,385 |
12,000,000 | 2 | Yinson Bornia Production, 5.969% (3-month USLIBOR +3.250%), 8/11/2026 | 12/17/2021- 8/19/2022 | 12,000,000 | 12,000,000 |
TOTAL | 68,508,840 | ||||
Finance/Banks/Brokers— 0.1% | |||||
411,765 | 2 | Banco del Pacifico, 8.655% (3-month USLIBOR +5.750%), 5/15/2024 | 5/21/2019 | 411,765 | 411,135 |
Foreign Sovereign— 16.9% | |||||
EUR 588,400 | 2 | Bank of Industry Ltd. - Central Bank of Nigeria, 4.891% (3-month EURIBOR +4.500%), 2/14/2025 | 3/10/2022- 3/17/2022 | 648,885 | 576,528 |
$ 3,333,600 | 2 | Bank of Industry Ltd. - Central Bank of Nigeria, 9.270% (3-month USLIBOR +6.000%), 12/11/2023 | 4/21/2021 | 3,366,936 | 3,342,584 |
EUR 4,800,000 | Benin, Government of, 1.870%, 12/21/2026 | 12/21/2021 | 5,415,841 | 4,211,146 |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— continued | ||||
Foreign Sovereign— continued | |||||
EUR 5,200,000 | 2 | Benin, Government of, 4.300% (6-month EURIBOR +4.300%), 12/21/2026 | 12/23/2021 | $ 5,893,941 | $ 4,928,006 |
6,666,668 | Burkina Faso, Government of, 3.300%, 1/22/2023 | 3/7/2022- 4/19/2022 | 7,238,110 | 6,446,993 | |
9,980,861 | Cote D’Ivoire, Government of, 2.900%, 12/7/2026 | 5/17/2022 | 10,524,316 | 9,464,393 | |
10,000,000 | Cote D’Ivoire, Government of, 3.000%, 11/20/2022 | 5/19/2022 | 10,590,999 | 9,757,888 | |
5,444,600 | Cote D’Ivoire, Government of, 3.966%, 12/31/2025 | 9/24/2019- 8/25/2021 | 6,330,793 | 4,956,999 | |
$ 6,882,642 | Egypt, Government of, 2.475%, 3/13/2023 | 9/10/2021- 3/15/2022 | 6,882,642 | 6,757,741 | |
10,506,694 | Egypt, Government of, 3.680%, 10/12/2023 | 11/26/2021- 9/26/2022 | 10,506,694 | 10,376,113 | |
6,000,000 | 2 | Energy Development Oman, 5.733% - 6.554% (3-month USLIBOR +2.950%), 8/14/2028 | 11/2/2021- 11/5/2021 | 5,969,544 | 6,000,000 |
EUR 3,500,000 | 2 | Minister of Finance of Ukraine, 5.113% (3-month EURIBOR +4.100%), 9/15/2023 | 8/26/2021 | 4,114,075 | 3,012,766 |
10,000,000 | Senegal, Government of, 2.800%, 4/15/2023 | 5/10/2022 | 10,508,163 | 9,704,376 | |
2,000,000 | 2 | Senegal, Government of, 5.258% (6-month EURIBOR +4.350%), 10/7/2026 | 2/23/2022 | 2,260,901 | 1,861,858 |
$ 375,000 | 2 | Sharjah Govt., 4.344% (3-month USLIBOR +1.200%), 3/4/2024 | 9/21/2020 | 373,125 | 374,312 |
3,086,398 | 2 | Nigeria, Republic of, 8.993% (90-DAY AVERAGE SOFR +5.950%), 12/30/2023 | 9/1/2022- 9/12/2022 | 3,086,398 | 3,082,033 |
EUR 10,000,000 | Turkiye Ihracat Kredi Bankasi A.S., 1.450%, 11/17/2022 | 5/4/2022 | 10,497,254 | 9,753,127 | |
TOTAL | 94,606,863 | ||||
Gas Distributor— 1.4% | |||||
$ 7,933,272 | 2 | Fermaca Pipeline la Laguna, S. de R.L. de C.V., 4.500% (3-month USLIBOR +2.500%), 12/31/2024 | 6/30/2022 | 7,774,607 | 7,835,566 |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— continued | ||||
Lease— 3.1% | |||||
$ 9,125,004 | AerCap Holdings NV, 3.700%, 12/31/2025 | 11/23/2021 | $ 9,127,336 | $ 8,944,557 | |
9,000,000 | 2 | Far East Horizon Ltd., 4.883% (3-month USLIBOR +1.400%), 9/10/2024 | 9/15/2021 | 9,000,000 | 8,752,450 |
TOTAL | 17,697,007 | ||||
Metals & Mining— 1.8% | |||||
10,000,000 | 2 | Navoi Mining and Metallurgical Company, 5.855% (90-DAY AVERAGE SOFR +4.760%), 4/20/2027 | 5/18/2022 | 9,925,000 | 9,868,589 |
Oil Field Services— 1.2% | |||||
7,146,492 | 2 | Sonasing Xikomba Ltd. (“Xikomfa”), Bermuda, Inc., 5.221% (3-month USLIBOR +2.300%), 5/29/2026 | 5/17/2022 | 7,146,492 | 7,041,545 |
Supranational— 3.0% | |||||
9,000,000 | 2 | Africa Finance Corp., 3.150% (3-month USLIBOR +0.900%), 1/17/2025 | 3/11/2022 | 9,002,250 | 9,000,000 |
7,000,000 | African Export-Import Bank (Afreximbank), 2.947%, 9/23/2022 | 3/10/2022- 9/6/2022 | 7,000,000 | 6,927,334 | |
1,000,000 | Eastern and Southern African Trade and Development Bank, 4.986% (3-month USLIBOR +1.450%), 12/17/2022 | 12/16/2020 | 989,000 | 998,902 | |
TOTAL | 16,926,236 | ||||
Technology Hardware & Equipment— 1.6% | |||||
8,780,341 | 1 | Datatec PLC, 5.650%, 11/4/2022 | 8/12/2022- 9/2/2022 | 8,674,712 | 8,752,487 |
Telecommunications - Wireless— 2.6% | |||||
8,953,846 | IHS Towers NG Ltd., 4.576%, 9/18/2024 | 9/14/2021- 4/20/2022 | 8,920,096 | 8,767,815 | |
EUR 6,000,000 | 2 | PTI Iberica IV, Spanish, Inc., 3.745% (3-month EURIBOR +3.250%), 6/26/2028 | 9/28/2021 | 7,008,903 | 5,635,410 |
TOTAL | 14,403,225 |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— continued | ||||
Transportation - Airlines— 0.2% | |||||
$ 1,444,858 | Avolon Aerospace, 2.817% - 3.138%, 3/31/2025 | 11/27/2019 | $ 1,451,721 | $ 1,340,694 | |
Transportation - Transport Infrastructure/Services— 1.4% | |||||
411,539 | 2 | Armenia International Airports CJSC, 5.760% (6-month USLIBOR +5.500%), 6/15/2024 | 12/28/2017 | 415,654 | 408,377 |
219,895 | 2 | Asyaport, 7.456% (6-month USLIBOR +4.400%), 1/10/2024 | 1/31/2017 | 219,895 | 219,895 |
169,740 | 2 | Autopistas Urbanas SA (AUSA), 6.405% (3-month USLIBOR +3.500%), 11/15/2022 | 11/13/2017 | 167,194 | 169,176 |
EUR 7,500,000 | 2 | Fraport TAV Antalya Yatirim Yapim ve Isletme (SPV, Turkey), 6.770% (6-month EURIBOR +5.500%), 3/25/2024 | 9/1/2022 | 7,461,001 | 7,333,750 |
TOTAL | 8,131,198 | ||||
Utility - Electric-Generation— 4.0% | |||||
$ 5,400,000 | 2 | Karadeniz Powership Osman Khan Co., Ltd., 9.336% (6-month USLIBOR +5.500%), 9/15/2026 | 10/14/2021 | 5,346,000 | 5,356,480 |
5,000,000 | 2 | Karpower International B.V., 10.459% (6-month USLIBOR +8.500%), 11/16/2023 | 5/25/2022 | 5,000,000 | 4,986,568 |
7,000,000 | Karpower International B.V., 8.029% (SOFR +6.000%), 3/22/2023 | 4/27/2022 | 7,000,000 | 6,988,695 | |
3,527,264 | 2 | Karpowership, 8.026% (6-month USLIBOR +4.500%), 2/28/2025 | 7/30/2020- 7/9/2021 | 3,497,565 | 3,507,939 |
392,940 | 2 | SMN Barka Power Company S.A.O.C., 1.257% (6-month USLIBOR +1.100%), 3/28/2024 | 12/2/2020 | 429,249 | 375,779 |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— continued | ||||
Utility - Electric-Generation— continued | |||||
$ 1,000,000 | 2 | The Sharjah Electricity and Water Authority, 2.932% (1-month USLIBOR +1.950%), 12/23/2025 | 12/21/2020- 1/12/2021 | $ 998,425 | $ 998,944 |
TOTAL | 22,214,405 | ||||
TOTAL TRADE FINANCE AGREEMENTS (IDENTIFIED COST $465,835,500) | 445,834,723 | ||||
INVESTMENT COMPANY— 19.3% | |||||
108,491,527 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 2.98%6 (IDENTIFIED COST $108,439,259) | 108,458,979 | |||
TOTAL INVESTMENT IN SECURITIES—98.8% (IDENTIFIED COST $574,274,759)7 | 554,293,702 | ||||
OTHER ASSETS AND LIABILITIES - NET—1.2%8 | 6,492,670 | ||||
TOTAL NET ASSETS—100% | $560,786,372 |
Settlement Date | Counterparty | Foreign Currency Units to Deliver/Receive | In Exchange For | Net Unrealized Appreciation | |
Contracts Sold: | |||||
10/17/2022 | State Street Bank & Trust Co. | 14,700,000 | EUR | $15,415,065 | $995,514 |
10/17/2022 | State Street Bank & Trust Co. | 14,636,720 | EUR | $15,073,787 | $716,309 |
11/25/2022 | Morgan Stanley | 28,500,000 | EUR | $30,332,915 | $2,300,896 |
11/25/2022 | State Street Bank & Trust Co. | 7,804,000 | EUR | $8,438,832 | $762,977 |
12/16/2022 | State Street Bank & Trust Co. | 10,000,000 | EUR | $10,785,016 | $930,189 |
2/6/2023 | State Street Bank & Trust Co. | 14,700,000 | EUR | $14,902,515 | $353,431 |
2/6/2023 | State Street Bank & Trust Co. | 2,200,000 | EUR | $2,223,548 | $46,134 |
2/6/2023 | State Street Bank & Trust Co. | 4,500,000 | EUR | $4,524,198 | $70,397 |
3/15/2023 | Barclays Bank PLC Wholesale | 9,975,000 | EUR | $10,829,898 | $933,235 |
NET UNREALIZED APPRECIATION ON FOREIGN EXCHANGE CONTRACTS | $7,109,082 |
Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | |
Value as of 3/31/2022 | $24,856,836 |
Purchases at Cost | $289,764,144 |
Proceeds from Sales | $(206,179,078) |
Change in Unrealized Appreciation/Depreciation | $18,760 |
Net Realized Gain/(Loss) | $(1,683) |
Value as of 9/30/2022 | $108,458,979 |
Shares Held as of 9/30/2022 | 108,491,527 |
Dividend Income | $892,045 |
1 | Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or availing of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At September 30, 2022, these restricted securities amounted to $445,834,723, which represented 79.5% of total net assets. |
2 | Floating/variable note with current rate and current maturity or next reset date shown. |
3 | Issuer in default. |
4 | Market quotations and price valuations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established by and under the general supervision of the Fund’s Adviser acting through its Valuation Committee. |
5 | Non-income-producing security. |
6 | 7-day net yield. |
7 | Also represents cost for federal tax purposes. |
8 | 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 September 30, 2022, in valuing the Fund’s assets carried at fair value:
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
Trade Finance Agreements | $— | $— | $445,834,723 | $445,834,723 |
Investment Company | 108,458,979 | — | — | 108,458,979 |
TOTAL SECURITIES | $108,458,979 | $— | $445,834,723 | $554,293,702 |
Other Financial Instruments1 | ||||
Assets | $— | $7,109,082 | $— | $7,109,082 |
TOTAL OTHER FINANCIAL INSTRUMENTS | $— | $7,109,082 | $— | $7,109,082 |
1 | Other financial instruments are foreign exchange contracts. |
Investments in Trade Finance Agreements | |
Balance as of 3/31/2022 | $513,257,286 |
Accreted/amortized discount/premiums | 711,024 |
Realized gain (loss) | (2,862,731) |
Change in unrealized appreciation/depreciation | (9,017,740) |
Purchases | 240,472,747 |
(Sales) | (296,725,863) |
Balance as of 9/30/2022 | $445,834,723 |
Total change in unrealized appreciation/depreciation attributable to investments still held at 9/30/2022 | $(11,423,642) |
The following acronym(s) are used throughout this portfolio: | ||
CJSC | —Closed Joint Stock Company | |
EUR | —Euro Currency | |
EURIBOR | —Euro Interbank Offered Rate | |
LIBOR | —London Interbank Offered Rate | |
SOFR | —Secured Overnight Financing Rate |
Six Months Ended (unaudited) 9/30/2022 | Year Ended March 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $9.80 | $9.92 | $9.71 | $9.98 | $10.00 | $10.02 |
Income From Investment Operations: | ||||||
Net investment income (loss) | 0.171 | 0.191 | 0.251 | 0.391 | 0.45 | 0.281 |
Net realized and unrealized gain (loss) | 0.002 | (0.11) | 0.22 | (0.27) | (0.01) | 0.02 |
TOTAL FROM INVESTMENT OPERATIONS | 0.17 | 0.08 | 0.47 | 0.12 | 0.44 | 0.30 |
Less Distributions: | ||||||
Distributions from net investment income | (0.15) | (0.20) | (0.26) | (0.38) | (0.45) | (0.32) |
Distributions from net realized gain | — | (0.00)2 | (0.00)2 | (0.01) | (0.01) | (0.00)2 |
TOTAL DISTRIBUTIONS | (0.15) | (0.20) | (0.26) | (0.39) | (0.46) | (0.32) |
Net Asset Value, End of Period | $9.82 | $9.80 | $9.92 | $9.71 | $9.98 | $10.00 |
Total Return3 | 1.75% | 0.80% | 4.91% | 1.13% | 4.42% | 3.04% |
Ratios to Average Net Assets: | ||||||
Net expenses4 | 0.41%5 | 0.41% | 0.71% | 0.71% | 0.70% | 0.67% |
Net investment income | 3.43%5 | 1.94% | 2.57% | 3.94% | 4.44% | 2.74% |
Expense waiver/reimbursement6 | 0.22%5 | 0.22% | 0.44% | 0.32% | 0.29% | 0.34% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $560,786 | $560,685 | $39,835 | $63,873 | $51,680 | $49,484 |
Portfolio turnover7 | 26% | 36% | 47% | 73% | 57% | 39% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
3 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | Computed on an annualized basis. |
6 | 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. |
7 | Securities that mature are considered sales for purposes of this calculation. |
September 30, 2022 (unaudited)
Assets: | |
Investment in securities, at value including $108,458,979 of investments in an affiliated holding* (identified cost $574,274,759) | $554,293,702 |
Cash | 1,347,411 |
Cash denominated in foreign currencies (identified cost $98,137) | 95,344 |
Income receivable | 4,504,375 |
Income receivable from an affiliated holding | 405,143 |
Receivable for investments sold | 1,973,788 |
Unrealized appreciation on foreign exchange contracts | 7,109,082 |
Total Assets | 569,728,845 |
Liabilities: | |
Payable for investments purchased | 8,842,930 |
Due to broker | 5,126 |
Payable for investment adviser fee (Note 5) | 4,055 |
Accrued expenses (Note 5) | 90,362 |
Total Liabilities | 8,942,473 |
Net assets for 57,088,398 shares outstanding | $560,786,372 |
Net Assets Consist of: | |
Paid-in capital | $568,059,210 |
Total distributable earnings (loss) | (7,272,838) |
Total Net Assets | $560,786,372 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
$560,786,372 ÷ 57,088,398 shares outstanding, no par value, unlimited shares authorized | $9.82 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended September 30, 2022 (unaudited)
Investment Income: | |
Interest | $10,047,032 |
Dividends received from an affiliated holding* | 892,045 |
TOTAL INCOME | 10,939,077 |
Expenses: | |
Investment adviser fee (Note 5) | 1,426,363 |
Administrative fee (Note 5) | 420 |
Custodian fees | 9,972 |
Transfer agent fees | 64,240 |
Directors’/Trustees’ fees (Note 5) | 5,057 |
Auditing fees | 45,766 |
Legal fees | 7,311 |
Portfolio accounting fees | 182,358 |
Share registration costs | 20,581 |
Printing and postage | 9,168 |
Miscellaneous (Note 5) | 13,075 |
TOTAL EXPENSES | 1,784,311 |
Waiver/reimbursement of investment adviser fee (Note 5) | (623,480) |
Net expenses | 1,160,831 |
Net investment income | 9,778,246 |
Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions and Foreign Exchange Contracts: | |
Net realized loss on investments (including net realized loss of $(1,683) on sales of investments in an affiliated holding*) | (2,864,415) |
Net realized loss on foreign currency transactions | (504,424) |
Net realized gain on foreign exchange contracts | 7,039,388 |
Net change in unrealized depreciation of investments (including net change in unrealized appreciation of $18,760 on investments in an affiliated holding*) | (8,998,979) |
Net change in unrealized appreciation of translation of assets and liabilities in foreign currency | (3,578) |
Net change in unrealized appreciation of foreign exchange contracts | 5,370,107 |
Net realized and unrealized gain (loss) on investments, foreign currency transactions and foreign exchange contracts | 38,099 |
Change in net assets resulting from operations | $9,816,345 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 9/30/2022 | Year Ended 3/31/2022 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $9,778,246 | $8,839,603 |
Net realized gain (loss) | 3,670,549 | 2,434,709 |
Net change in unrealized appreciation/depreciation | (3,632,450) | (8,891,063) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 9,816,345 | 2,383,249 |
Distributions to Shareholders | (8,636,013) | (10,523,247) |
Share Transactions: | ||
Proceeds from sale of shares | 10,000,000 | 540,000,000 |
Net asset value of shares issued to shareholders in payment of distributions declared | 4,710,140 | 5,378,588 |
Cost of shares redeemed | (15,789,251) | (16,388,482) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (1,079,111) | 528,990,106 |
Change in net assets | 101,221 | 520,850,108 |
Net Assets: | ||
Beginning of period | 560,685,151 | 39,835,043 |
End of period | $560,786,372 | $560,685,151 |
Six Months Ended September 30, 2022 (unaudited)
Operating Activities: | |
Change in net assets resulting from operations | $9,816,345 |
Adjustments to Reconcile Change in Net Assets Resulting From Operations to Net Cash Used By Operating Activities: | |
Purchase of investment securities | (240,472,747) |
Proceeds from disposition of investment securities | 296,725,863 |
Purchase of short-term investments, net | (83,585,066) |
Amortization/accretion of premium/discount, net | (711,024) |
Increase in income receivable | (2,219,020) |
Decrease in receivable for investments sold | 7,026,829 |
Increase in payable for investments purchased | 6,716,803 |
Decrease in accrued expenses | (66,729) |
Net realized loss on investments | 2,864,415 |
Net change in unrealized appreciation/depreciation of investments | 8,998,979 |
Net change in unrealized appreciation of foreign exchange contracts | (5,370,107) |
Net Cash Used By Operating Activities | (275,459) |
Financing Activities: | |
Decrease in cash overdraft | (40,827) |
Proceeds from sale of shares | 20,000,000 |
Income distributions to participants | (3,925,873) |
Payments for units redeemed | (15,789,251) |
Net Cash Provided By Financing Activities | 244,049 |
Decrease in cash and cash equivalents | (31,410) |
Cash at beginning of year | 1,474,165 |
Cash at end of year | $1,442,755 |
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 | ||
Foreign exchange contracts | Unrealized appreciation on foreign exchange contracts | $7,109,082 |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |
Foreign Exchange Contracts | |
Foreign exchange contracts | $7,039,388 |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |
Foreign Exchange Contracts | |
Foreign exchange contracts | $5,370,107 |
Six Months Ended 9/30/2022 | Year Ended 3/31/2022 | |
Shares sold | 1,015,229 | 54,268,215 |
Shares issued to shareholders in payment of distributions declared | 480,426 | 544,214 |
Shares redeemed | (1,591,658) | (1,641,945) |
NET CHANGE RESULTING FROM FUND SHARE TRANSACTIONS | (96,003) | 53,170,484 |
Purchases | $85,389,448 |
Sales | $89,007,970 |
Country | Percentage of Total Net Assets |
Turkey | 6.9% |
Brazil | 6.6% |
Uzbekistan | 6.2% |
Nigeria | 4.5% |
Ivory Coast | 4.3% |
Egypt | 4.3% |
Singapore | 3.8% |
Senegal | 3.4% |
Russia | 3.2% |
Oman | 3.1% |
United Kingdom | 3.0% |
Angola | 2.8% |
China | 2.8% |
Ireland | 1.8% |
Malaysia | 1.7% |
Benin | 1.6% |
Curacao | 1.6% |
Zambia | 1.5% |
Iraq | 1.5% |
Mexico | 1.4% |
Suriname | 1.4% |
Azerbaijan | 1.4% |
Vietnam | 1.3% |
Pakistan | 1.3% |
Burkina Faso | 1.1% |
Ghana | 1.0% |
Cyprus | 1.0% |
South Africa | 1.0% |
Ukraine | 0.5% |
Congo, Republic Of | 0.4% |
United Arab Emirates | 0.2% |
Mauritius | 0.2% |
Mauritania | 0.2% |
Ecuador | 0.1% |
Armenia | 0.1% |
Argentina | 0.1% |
Country | Percentage of Total Net Assets |
Bahrain | 0.0%1 |
Philippines | 0.0%1 |
1 | Represents less than 0.1%. |
Beginning Account Value 4/1/2022 | Ending Account Value 9/30/2022 | Expenses Paid During Period1 | |
Actual | $1,000 | $1,017.50 | $2.07 |
Hypothetical (assuming a 5% return before expenses) | $1,000 | $1,023.01 | $2.08 |
1 | Expenses are equal to the Fund’s annualized net expense ratio of 0.41%, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half-year period). |
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
Item 2. | Code of Ethics |
Not Applicable
Item 3. | Audit Committee Financial Expert |
Not Applicable
Item 4. | Principal Accountant Fees and Services |
Not Applicable
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 Project and Trade Finance Tender Fund
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date November 22, 2022
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 November 22, 2022
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date November 22, 2022