United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-23259
(Investment Company Act File Number)
Federated Hermes Adviser Series
______________________________________________________________
(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: 08/31/22
Date of Reporting Period: Six months ended 02/28/22
Item 1. | Reports to Stockholders |
Share Class | Ticker | Institutional | FHCOX |
Federated Hermes Conservative Microshort Fund
A Portfolio of Federated Hermes Adviser Series
Security Type | Percentage of Total Net Assets |
Asset-Backed Securities | 39.7% |
Commercial Paper | 6.7% |
Certificates of Deposit | 1.7% |
Corporate Bond | 1.3% |
Cash Equivalents2 | 30.1% |
Other Repurchase Agreements | 20.5% |
Other Assets and Liabilities—Net3 | (0.0)% |
TOTAL | 100% |
1 | See the Fund’s Prospectus for a description of the principal types of securities in which the Fund invests. |
2 | Cash Equivalents include any investments in money market mutual funds. |
3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Principal Amount or Shares | Value | ||
ASSET-BACKED SECURITIES— 39.7% | |||
Auto Receivables— 24.8% | |||
$ 1,012,542 | Chase Auto Credit Linked Notes 2020-2, Class C, 1.139%, 2/25/2028 | $ 1,008,999 | |
367,046 | Chase Auto Credit Linked Notes 2020-2, Class D, 1.487%, 2/25/2028 | 365,847 | |
428,124 | Drive Auto Receivables Trust 2019-4, Class C, 2.510%, 11/17/2025 | 429,794 | |
1,785,084 | Drive Auto Receivables Trust 2021-2, Class A2, 0.360%, 5/15/2024 | 1,782,661 | |
1,530,000 | General Motors 2020-1, Class A, 0.680%, 8/15/2025 | 1,505,836 | |
750,000 | GM Financial Automobile Leasing Trust 2020-2, Class B, 1.560%, 7/22/2024 | 751,235 | |
2,300,000 | 1 | Navistar Financial Dealer Note Master Trust 2020-1, Class B, 1.537% (1-month USLIBOR +1.350%), 7/25/2025 | 2,305,817 |
452,004 | Santander Bank Auto Credit-Linked Notes 2021-1A, Class B, 2.695%, 12/15/2031 | 447,346 | |
132,345 | Santander Retail Auto Lease Trust 2019-A, Class D, 3.660%, 5/20/2024 | 132,536 | |
115,000 | Santander Retail Auto Lease Trust 2019-B, Class B, 2.580%, 8/21/2023 | 115,386 | |
110,000 | Santander Retail Auto Lease Trust 2019-B, Class C, 2.770%, 8/21/2023 | 110,424 | |
945,000 | Santander Retail Auto Lease Trust 2020-A, Class D, 2.520%, 11/20/2024 | 947,510 | |
850,000 | Tesla Auto Lease Trust 2020-A, Class B, 1.180%, 1/22/2024 | 848,418 | |
3,000,000 | Tesla Auto Lease Trust 2020-A, Class D, 2.330%, 2/20/2024 | 3,003,697 | |
725,000 | World Omni Auto Receivables Trust 2019-A, Class D, 2.590%, 12/15/2025 | 728,368 | |
TOTAL | 14,483,874 | ||
Credit Card— 0.5% | |||
315,000 | 1 | American Express Credit Account Master Trust 2017-5, Class B, 0.771% (1-month USLIBOR +0.580%), 2/18/2025 | 315,431 |
Equipment Lease— 5.6% | |||
3,000,000 | Dell Equipment Finance Trust 2020-2, Class D, 1.920%, 3/23/2026 | 2,999,429 | |
300,000 | Dell Equipment Finance Trust 2021-1, Class D, 1.030%, 11/23/2026 | 295,212 | |
TOTAL | 3,294,641 | ||
Other— 8.6% | |||
750,000 | PFS Financing Corp. 2019-A, Class B, 3.130%, 4/15/2024 | 753,926 | |
1,878,000 | PFS Financing Corp. 2020-B, Class A, 1.210%, 6/15/2024 | 1,884,718 | |
1,500,000 | PFS Financing Corp. 2022-B, Class B, 0.898% (30-DAY AVERAGE SOFR +0.850%), 2/17/2026 | 1,501,635 | |
896,808 | Sofi Consumer Loan Program Trust 2021-1, Class A, 0.490%, 9/25/2030 | 890,323 | |
TOTAL | 5,030,602 | ||
Student Loans— 0.2% | |||
89,952 | Navient Student Loan Trust 2018-A, Class A2, 3.190%, 2/18/2042 | 90,304 | |
TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $23,394,032) | 23,214,852 |
Principal Amount or Shares | Value | ||
2 | COMMERCIAL PAPER— 6.7% | ||
Electric Power— 1.7% | |||
$ 1,000,000 | Duke Energy Corp., 0.220%, 3/17/2022 | $ 999,863 | |
Energy - Midstream— 5.0% | |||
2,900,000 | Energy Transfer LP, 0.350%, 3/1/2022 | 2,899,964 | |
TOTAL COMMERCIAL PAPER (IDENTIFIED COST $3,899,902) | 3,899,827 | ||
CERTIFICATES OF DEPOSIT— 1.7% | |||
Banking— 1.7% | |||
1,000,000 | MUFG Bank Ltd., 0.440%, 12/7/2022 (IDENTIFIED COST $1,000,000) | 993,812 | |
CORPORATE BOND— 1.3% | |||
Financial Institution - Finance Companies— 1.3% | |||
750,000 | 1 | Air Lease Corp., Sr. Unsecd. Note, Series MTN, 0.553% (3-month USLIBOR +0.350%), 12/15/2022 (IDENTIFIED COST $750,000) | 749,723 |
OTHER REPURCHASE AGREEMENTS— 20.5% | |||
2,860,000 | BNP Paribas S.A. 0.15%, dated 2/28/2022, interest in a $500,000,000 collateralized loan agreement will repurchase securities provided as collateral for $500,002,083 on 3/1/2022, in which asset-backed securities, collateralized mortgage obligations, corporate bond, medium-term notes and Sovereign with a market value of $510,002,126 have been received as collateral and held with BNY Mellon as tri-party agent. | 2,860,000 | |
2,430,000 | ING Financial Markets LLC, 0.14%, dated 2/28/2022, interest in a $50,000,000 collateralized loan agreement will repurchase securities provided as collateral for $50,000,194 on 3/1/2022, in which corporate bonds with a market value of $51,001,056 have been received as collateral and held with BNY Mellon as tri-party agent. | 2,430,000 | |
1,000,000 | MUFG Securities Americas, Inc., 0.22%, dated 2/28/2022, interest in a $550,000,000 collateralized loan agreement will repurchase securities provided as collateral for $550,003,361 on 3/1/2022, in which American depositary receipts, common stocks, exchange traded funds, and unit investment trust with a market value of $561,003,429 have been received as collateral and held with BNY Mellon as tri-party agent. | 1,000,000 | |
2,860,000 | Societe Generale, Paris 0.22%, dated 2/28/2022, interest in a $650,000,000 collateralized loan agreement will repurchase securities provided as collateral for $650,003,972 on 3/1/2022, in which asset-backed securities, collateralized mortgage obligations, corporate bonds, medium-term notes and Sovereign with a market value of $663,004,058 have been received as collateral and held with BNY Mellon as tri-party agent. | 2,860,000 | |
2,860,000 | Standard Chartered Bank, 0.16%, dated 2/28/2022, interest in a $100,000,000 collateralized loan agreement will repurchase securities provided as collateral for $100,000,444 on 3/1/2022, in which, treasury bonds and treasury notes with a market value of $102,000,520 have been received as collateral and held with BNY Mellon as tri-party agent. | 2,860,000 | |
TOTAL OTHER REPURCHASE AGREEMENTS (IDENTIFIED COST $12,010,000) | 12,010,000 |
Principal Amount or Shares | Value | ||
INVESTMENT COMPANY— 30.1% | |||
17,612,489 | Federated Hermes Institutional Money Market Management, Institutional Shares, 0.05%3 (IDENTIFIED COST $17,608,967) | $17,605,444 | |
TOTAL INVESTMENT IN SECURITIES—100.0% (IDENTIFIED COST $58,662,901)4 | 58,473,658 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.0)%5 | (27,003) | ||
TOTAL NET ASSETS—100% | $58,446,655 |
Federated Hermes Institutional Money Market Management, Institutional Shares | |
Value as of 8/31/2021 | $33,446,198 |
Purchases at Cost | $— |
Proceeds from Sales | $(15,837,231) |
Change in Unrealized Appreciation/Depreciation | $(3,523) |
Net Realized Gain/(Loss) | N/A |
Value as of 2/28/2022 | $17,605,444 |
Shares Held as of 2/28/2022 | 17,612,489 |
Dividend Income | $1,909 |
1 | Floating/variable note with current rate and current maturity or next reset date shown. |
2 | Discount rate at time of purchase for discount issues, or the coupon for interest-bearing issues. |
3 | 7-day net yield. |
4 | Also represents cost of investments for federal tax purposes. |
5 | 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 February 28, 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: | ||||
Asset-Backed Securities | $— | $23,214,852 | $— | $23,214,852 |
Commercial Paper | — | 3,899,827 | — | 3,899,827 |
Certificates of Deposit | — | 993,812 | — | 993,812 |
Corporate Bond | — | 749,723 | — | 749,723 |
Other Repurchase Agreements | — | 12,010,000 | — | 12,010,000 |
Investment Company | 17,605,444 | — | — | 17,605,444 |
TOTAL SECURITIES | $17,605,444 | $40,868,214 | $— | $58,473,658 |
The following acronym(s) are used throughout this portfolio: | ||
LIBOR | —London Interbank Offered Rate | |
MTN | —Medium Term Note | |
SOFR | —Secured Overnight Financing Rate |
Six Months Ended (unaudited) 2/28/2022 | Period Ended 8/31/20211 | |
Net Asset Value, Beginning of Period | $10.02 | $10.00 |
Income From Investment Operations: | ||
Net investment income (loss) | 0.01 | 0.01 |
Net realized and unrealized gain (loss) | (0.05) | 0.03 |
TOTAL FROM INVESTMENT OPERATIONS | (0.04) | 0.04 |
Less Distributions: | ||
Distributions from net investment income | (0.01) | (0.02) |
Net Asset Value, End of Period | $9.97 | $10.02 |
Total Return2 | (0.36)% | 0.36% |
Ratios to Average Net Assets: | ||
Net expenses3 | 0.06%4 | 0.04%4 |
Net investment income | 0.27%4 | 0.23%4 |
Expense waiver/reimbursement5 | 0.54%4 | 1.15%4 |
Supplemental Data: | ||
Net assets, end of period (000 omitted) | $58,447 | $71,621 |
Portfolio turnover6 | 15% | 26% |
1 | Reflects operations for the period from February 3, 2021 (commencement of operations) to August 31, 2021. |
2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | Computed on an annualized basis. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
6 | Securities that mature are considered sales for purposes of this calculation. |
February 28, 2022 (unaudited)
Assets: | |
Investment in other repurchase agreements | $12,010,000 |
Investment in securities | 46,463,658 |
Investment in securities, at value including $17,605,444 of investments in an affiliated holding* (identified cost $58,662,901) | 58,473,658 |
Income receivable | 13,313 |
Income receivable from an affiliated holding | 951 |
Prepaid expenses | 12,239 |
Total Assets | 58,500,161 |
Liabilities: | |
Payable for shares redeemed | 76 |
Payable to bank | 499 |
Income distribution payable | 13,238 |
Payable to adviser (Note 5) | 1,223 |
Payable for administrative fee (Note 5) | 125 |
Payable for custodian fees | 4,994 |
Payable for Directors’/Trustees’ fees (Note 5) | 223 |
Payable for auditing fees | 16,422 |
Payable for portfolio accounting fees | 16,706 |
Total Liabilities | 53,506 |
Net assets for 5,861,801 shares outstanding | $58,446,655 |
Net Assets Consist of: | |
Paid-in capital | $58,641,752 |
Total distributable earnings (loss) | (195,097) |
Total Net Assets | $58,446,655 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
$58,446,655 ÷ 5,861,801 shares outstanding, no par value, unlimited shares authorized | $9.97 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended February 28, 2022 (unaudited)
Investment Income: | |
Interest | $93,199 |
Dividends received from an affiliated holding* | 1,909 |
TOTAL INCOME | 95,108 |
Expenses: | |
Investment adviser fee (Note 5) | 72,611 |
Administrative fee (Note 5) | 22,854 |
Custodian fees | 4,872 |
Transfer agent fees | 2,270 |
Directors’/Trustees’ fees (Note 5) | 223 |
Auditing fees | 9,423 |
Legal fees | 4,128 |
Portfolio accounting fees | 26,932 |
Share registration costs | 14,785 |
Printing and postage | 8,751 |
Miscellaneous (Note 5) | 5,996 |
TOTAL EXPENSES | 172,845 |
Waivers and Reimbursement: | |
Waiver of investment adviser fee (Note 5) | (72,611) |
Waivers/reimbursement of other operating expenses (Note 5) | (84,186) |
TOTAL WAIVERS AND REIMBURSEMENT | (156,797) |
Net expenses | 16,048 |
Net investment income | 79,060 |
Realized and Unrealized Gain (Loss) on Investments: | |
Net realized loss on investments | (1,317) |
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $(3,523) on investments in an affiliated holding*) | (247,016) |
Net realized and unrealized gain (loss) on investments | (248,333) |
Change in net assets resulting from operations | $(169,273) |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 2/28/2022 | Period Ended 8/31/20211 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $79,060 | $28,279 |
Net realized gain (loss) | (1,317) | (3,771) |
Net change in unrealized appreciation/depreciation | (247,016) | 57,773 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | (169,273) | 82,281 |
Distributions to Shareholders | (80,456) | (27,649) |
Share Transactions: | ||
Proceeds from sale of shares | 3,200,502 | 71,621,650 |
Net asset value of shares issued to shareholders in payment of distributions declared | 8,123 | 24,518 |
Cost of shares redeemed | (16,132,745) | (80,296) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (12,924,120) | 71,565,872 |
Change in net assets | (13,173,849) | 71,620,504 |
Net Assets: | ||
Beginning of period | 71,620,504 | — |
End of period | $58,446,655 | $71,620,504 |
1 | Reflects operations for the period from February 3, 2021 (date of initial investment) to August 31, 2021. |
Six Months Ended 2/28/2022 | Period Ended 8/31/20211 | |
Shares sold | 320,018 | 7,156,666 |
Shares issued to shareholders in payment of distributions declared | 813 | 2,451 |
Shares redeemed | (1,610,123) | (8,024) |
NET CHANGE RESULTING FROM FUND SHARE TRANSACTIONS | (1,289,292) | 7,151,093 |
1 | Reflects operations for the period from February 3, 2021 (commencement of operations) to August 31, 2021. |
Short-Term | Long-Term | Total |
$9,158 | $— | $9,158 |
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 |
Purchases | $6,167,426 |
Sales | $19,201,063 |
Beginning Account Value 9/1/2021 | Ending Account Value 2/28/2022 | Expenses Paid During Period1 | |
Actual | $1,000 | $996.40 | $0.302 |
Hypothetical (assuming a 5% return before expenses) | $1,000 | $1,024.50 | $0.302 |
1 | Expenses are equal to the Fund’s annualized net expense ratio of 0.06%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). |
2 | Actual and Hypothetical expenses paid during the period utilizing the Fund’s current Fee Limit of 0.25% (as reflected in the Notes to Financial Statements, Note 5 under Expense Limitation), multiplied by the average account value over the period, multiplied by 181/365 (to reflect expenses paid as if they had been in effect throughout the most recent one-half-year period) would be $1.24 and 1.26, respectively. |
Annual Evaluation of Adequacy and Effectiveness
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
Share Class | Ticker | Institutional | FHMIX | |||
Federated Hermes Conservative Municipal Microshort Fund
A Portfolio of Federated Hermes Adviser Series
Sector Composition | Percentage of Total Net Assets |
Industrial Development/Pollution Control | 24.8% |
Electric & Gas | 23.9% |
Multi-Family Housing | 16.5% |
General Obligation- Local | 6.4% |
Senior Care | 4.9% |
Public Power | 2.9% |
Transportation | 2.3% |
General Obligation- State (Approp) | 2.2% |
General Obligation- Local (Approp) | 1.7% |
Dedicated Tax | 1.5% |
Other2 | 13.6% |
Other Assets and Liabilities—Net3 | (0.7)% |
TOTAL | 100% |
1 | Sector classifications and the assignments of holdings to such sectors, are based upon the economic sector and/or revenue source of the underlying obligor, as determined by the Fund’s Adviser. For securities that have been enhanced by a third-party guarantor, such as bond insurers and banks, sector classifications are based upon the economic sector and/or revenue source of the underlying obligor, as determined by the Fund’s Adviser. |
2 | For purposes of this table, sector classifications constitute 87.1% of the Fund’s total net assets. Remaining sectors have been aggregated under the designation “Other”. |
3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Securities With an Effective Maturity of: | Percentage of Total Net Assets |
1-7 Days | 77.5% |
8-30 Days | 0.4% |
31-90 Days | 13.5% |
91-180 Days | 7.2% |
181 Days or more | 2.1% |
Other Assets and Liabilities—Net2 | (0.7)% |
Total | 100% |
1 | Variable rate demand instruments are treated as short-term securities as the repayment of their principal amount at face value can be on demand. For other investments, effective maturity is the unexpired time until final maturity. |
2 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Principal Amount | Value | ||
1 | SHORT-TERM MUNICIPALS— 100.5% | ||
Alabama— 2.5% | |||
$2,000,000 | Mobile, AL IDB (Alabama Power Co.), PCRBs (Series 2007B) Weekly VRDNs, 0.300%, 3/2/2022 | $ 2,000,000 | |
Arizona— 4.5% | |||
170,000 | Arizona Board of Regents (Northern Arizona University), Revenue Bonds (Series 2020B), (Assured Guaranty Municipal Corp. INS), 5.000%, 8/1/2022 | 173,056 | |
3,000,000 | Arizona State IDA (Vaseo Apartments LP), Mizuho 3a-7 (2021-MIZ9088) VRENs, (GTD by Mizuho Bank Ltd.)/(Mizuho Bank Ltd. LIQ), 0.450%, 3/3/2022 | 3,000,000 | |
300,000 | Arizona Transportation Board, Grant Anticipation Refunding Notes (Series 2016), 5.000%, 7/1/2022 | 304,328 | |
90,000 | Phoenix, AZ Civic Improvement Corp. - Wastewater System, Revenue Refunding Bonds (Series 2016), 5.000%, 7/1/2022 | 91,320 | |
100,000 | Pima County, AZ Sewer System, Revenue Obligations (Series 2020A), 5.000%, 7/1/2022 | 101,459 | |
TOTAL | 3,670,163 | ||
California— 6.9% | |||
100,000 | California State Public Works Board (California State), (2013 Series A), 4.000%, 3/1/2022 | 100,000 | |
260,000 | California State Public Works Board (California State), (2013 Series E), 5.000%, 6/1/2022 | 262,866 | |
25,000 | Los Angeles County, CA TRANs, 4.000%, 6/30/2022 | 25,280 | |
3,000,000 | Los Angeles, CA Community Redevelopment Agency (DWF V Hollywood & Vine, LP), Mizuho 3a-7 (Series 2022-MIZ9089) Weekly VRDNs, (GTD by FHLMC)/(Mizuho Bank Ltd. LIQ), 0.370%, 3/3/2022 | 3,000,000 | |
475,000 | Los Angeles, CA Multi-Family Housing Revenue Bonds (CORE Related/ GALA Rentals, LP), SPEAR’s 3a7 (Series DBE-8081) VRDNs, (Deutsche Bank AG LIQ)/(Deutsche Bank AG LOC), 0.600%, 3/3/2022 | 475,000 | |
30,000 | Metropolitan Water District of Southern California, Subordinate Water Revenue Refunding Bonds (2018 Series A), 5.000%, 7/1/2022 | 30,435 | |
185,000 | River Islands, CA Public Financing Authority (River Islands, CA Public Financing Authority Community Facilities District No. 2003-1), Tender Option Bond Trust Floater Certificates (2020-MIZ9026) VRENs, (GTD by Mizuho Bank Ltd.)/(Mizuho Bank Ltd. LIQ), 0.450%, 3/3/2022 | 185,000 | |
100,000 | San Diego, CA Unified School District, UT GO Refunding Bonds (2014 Series D-1), 5.500%, 7/1/2022 | 101,590 | |
200,000 | San Francisco, CA City & County Multi-Family Housing (Valencia Gardens Housing LP), (Series 2004) Weekly VRDNs, (Citibank N.A., New York LOC), 0.250%, 3/2/2022 | 200,000 | |
525,000 | Southern California Public Power Authority (Southern Transmission System), Revenue Refunding Bonds (2018 Series A), 5.000%, 7/1/2022 | 532,662 |
Principal Amount | Value | ||
1 | SHORT-TERM MUNICIPALS— continued | ||
California— continued | |||
$ 700,000 | Victorville, CA Joint Powers Financing Authority (Victorville, CA), (Series 2007A: Cogeneration Facility) Weekly VRDNs, (BNP Paribas SA LOC), 0.230%, 3/3/2022 | $ 700,000 | |
TOTAL | 5,612,833 | ||
Colorado— 0.3% | |||
243,510 | Colorado HFA (Steele San Juan, LLC), Mizuho 3a-7 (Series 2021-MIZ9068) VRENs, (GTD by Mizuho Bank Ltd.)/(Mizuho Bank Ltd. LIQ), 0.450%, 3/3/2022 | 243,510 | |
Connecticut— 0.1% | |||
100,000 | Connecticut State Special Transportation Fund, RBC Muni Products (Series G-110) TOBs, (Royal Bank of Canada LIQ)/(Royal Bank of Canada LOC), 0.380%, Optional Tender 4/1/2022 | 100,000 | |
Florida— 3.6% | |||
250,000 | Brevard County, FL Health Facilities Authority (Health First, Inc.), Health Care Facilities Revenue Bonds (Series 2014), 5.000%, 4/1/2022 | 250,896 | |
130,000 | Capital Trust Agency, FL (Milestones Community School, Inc.), Tender Option Bond Trust Receipts (2022-XF2965) Weekly VRDNs, (GTD by Mizuho Bank Ltd.)/(Mizuho Bank Ltd. LIQ), 0.370%, 3/3/2022 | 130,000 | |
400,000 | Florida State, Board of Education GO Refunding Bonds (2015 Series E), 5.000%, 6/1/2022 | 404,470 | |
450,000 | JEA, FL Electric System, (Series 2008 D) Daily VRDNs, (U.S. Bank, N.A. LIQ), 0.120%, 3/1/2022 | 450,000 | |
1,400,000 | JEA, FL Electric System, (Series Three 2008B-3) Weekly VRDNs, (Royal Bank of Canada LIQ), 0.220%, 3/2/2022 | 1,400,000 | |
235,000 | Miami-Dade County, FL HFA (Superior Manor Phase II LLC), Mizuho 3a-7 (2022-MIZ9087) VRENs, (GTD by Mizuho Bank Ltd.)/(Mizuho Bank Ltd. LIQ), 0.450%, 3/3/2022 | 235,000 | |
TOTAL | 2,870,366 | ||
Georgia— 6.3% | |||
1,700,000 | Burke County, GA Development Authority (Georgia Power Co.), (1st Series 2009) Daily VRDNs, 0.170%, 3/1/2022 | 1,700,000 | |
115,000 | Clayton County & Clayton County, GA Water Authority, Water and Sewerage Revenue Refunding Bonds (Series 2012), 5.000%, 5/1/2022 | 115,851 | |
1,300,000 | Heard County, GA Development Authority (Georgia Power Co.), (First Series 2007) Daily VRDNs, 0.140%, 3/1/2022 | 1,300,000 | |
750,000 | Monroe County, GA Development Authority (Florida Power & Light Co.), (Series 2017) Daily VRDNs, 0.130%, 3/1/2022 | 750,000 | |
500,000 | Monroe County, GA Development Authority Pollution Control (Georgia Power Co.), (First Series 1997) Daily VRDNs, 0.200%, 3/1/2022 | 500,000 | |
750,000 | Monroe County, GA Development Authority Pollution Control (Georgia Power Co.), (First Series 2008) Daily VRDNs, 0.200%, 3/1/2022 | 750,000 | |
TOTAL | 5,115,851 | ||
Idaho— 4.9% | |||
4,000,000 | American Falls, ID Reservoir District (Idaho Power Co.), (Series 2000) Weekly VRDNs, 0.320%, 3/2/2022 | 4,000,000 |
Principal Amount | Value | ||
1 | SHORT-TERM MUNICIPALS— continued | ||
Illinois— 5.8% | |||
$4,000,000 | Illinois Development Finance Authority (North Shore Senior Center), (Series 1999) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LOC), 0.240%, 3/2/2022 | $ 4,000,000 | |
500,000 | Illinois Finance Authority (Saint Xavier University), (Series 2006) Weekly VRDNs, (Huntington National Bank LOC), 0.270%, 3/3/2022 | 500,000 | |
200,000 | Illinois State, UT GO Refunding Bonds (Series 2021A), 5.000%, 3/1/2022 | 200,000 | |
TOTAL | 4,700,000 | ||
Indiana— 5.4% | |||
290,000 | Greater Clark County, IN Community Schools Corp., Ad Valorem Property Tax First Mortgage Bonds (Series 2020), (GTD by Indiana State School Aid Intercept Program), 4.000%, 1/15/2023 | 297,697 | |
4,000,000 | Indiana State Finance Authority Environmental (Mittal Steel USA, Inc.), (Series 2006) Weekly VRDNs, (Banco Bilbao Vizcaya Argentaria SA LOC), 0.320%, 3/2/2022 | 4,000,000 | |
100,000 | Plainfield, IN High School Building Corp., Ad Valorem Property Tax First Mortgage Refunding Bonds (Series 2014), (GTD by Indiana State School Aid Intercept Program), 5.000%, 7/15/2022 | 101,616 | |
TOTAL | 4,399,313 | ||
Iowa— 0.3% | |||
85,000 | Cedar Rapids, IA Community School District, Sales, Services and Use Tax Revenue Bonds (Series 2020B), 5.000%, 7/1/2022 | 86,218 | |
150,000 | Waukee, IA, UT GO Bonds (Series 2014), 2.000%, 6/1/2022 | 150,529 | |
TOTAL | 236,747 | ||
Kansas— 0.0% | |||
20,000 | Leawood, KS, UT GO Temporary Notes (Series 2021-1) BANs, 1.500%, 9/1/2022 | 20,061 | |
Kentucky— 5.8% | |||
4,000,000 | Louisville & Jefferson County, KY Metropolitan Government (Louisville Gas & Electric Co.), (Series B) Weekly VRDNs, 0.240%, 3/4/2022 | 4,000,000 | |
700,000 | Meade County, KY Industrial Building Revenue Authority (Nucor Corp.), (Series 2021B-1) Daily VRDNs, 0.180%, 3/1/2022 | 700,000 | |
TOTAL | 4,700,000 | ||
Louisiana— 0.9% | |||
250,000 | St. James Parish, LA (Nucor Steel Louisiana LLC), (Series 2010A-1) Weekly VRDNs, (GTD by Nucor Corp.), 0.280%, 3/2/2022 | 250,000 | |
500,000 | St. James Parish, LA (Nucor Steel Louisiana LLC), (Series 2010B-1) Weekly VRDNs, (GTD by Nucor Corp.), 0.260%, 3/2/2022 | 500,000 | |
TOTAL | 750,000 | ||
Maryland— 0.3% | |||
55,000 | Baltimore County, MD, UT GO Public Improvement BANs (Series 2021) BANs, 4.000%, 3/23/2022 | 55,119 | |
140,000 | Maryland State Water Quality Financing Administration, Bay Restoration Fund Revenue Bonds (Series 2014), 5.000%, 3/1/2022 | 140,000 | |
TOTAL | 195,119 |
Principal Amount | Value | ||
1 | SHORT-TERM MUNICIPALS— continued | ||
Massachusetts— 1.1% | |||
$ 100,000 | Commonwealth of Massachusetts, UT GO Refunding Bonds (2018 Series B), 4.000%, 7/1/2022 | $ 101,136 | |
490,000 | Everett, MA, GO Municipal Purpose Loan of 2018, 5.000%, 5/1/2022 | 493,628 | |
250,000 | Massachusetts IFA (New England Power Co.), (Series 1992B), CP, 0.190%, Mandatory Tender 3/14/2022 | 249,990 | |
TOTAL | 844,754 | ||
Missouri— 0.4% | |||
255,000 | Kansas City, MO Planned Industrial Expansion Authority (EPD3 Ridgeview LP), Mizuho 3a-7 (2022-MIZ9086) VRENs, (GTD by Mizuho Bank Ltd.)/(Mizuho Bank Ltd. LIQ), 0.450%, 3/3/2022 | 255,000 | |
100,000 | Metropolitan St. Louis, MO Sewer District, Wastewater System Revenue Bonds (Series 2013B), 5.000%, 5/1/2022 | 100,744 | |
TOTAL | 355,744 | ||
Montana— 0.9% | |||
715,000 | Montana State Board of Housing (HRDC IX Affordable Housing Solutions LP), Mizuho 3a-7 (2021-MIZ9061) VRENs, (GTD by Mizuho Bank Ltd.)/(Mizuho Bank Ltd. LIQ), 0.450%, 3/3/2022 | 715,000 | |
Multi-State— 2.6% | |||
600,000 | Invesco Value Municipal Income Trust, PUTTERs 3a-7 (VMTP 5027) Daily VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 0.350%, 3/1/2022 | 600,000 | |
1,500,000 | Nuveen AMT-Free Quality Municipal Income Fund, Series D MuniFund Preferred Shares Weekly VRDPs, 0.400%, 3/1/2022 | 1,500,000 | |
TOTAL | 2,100,000 | ||
Nevada— 2.2% | |||
1,500,000 | Nevada Housing Division (DWF V Summit Club Holdings LLC), Mizuho 3a-7 (2021-MIZ9091) VRENs, (GTD by Mizuho Bank Ltd.)/(Mizuho Bank Ltd. LIQ), 0.450%, 3/3/2022 | 1,500,000 | |
235,000 | Nevada Housing Division (Lake Mead West AHP LP), (Series 2021-XF1120) Weekly VRDNs, (Deutsche Bank AG LIQ)/(Deutsche Bank AG LOC), 0.450%, 3/3/2022 | 235,000 | |
TOTAL | 1,735,000 | ||
New Jersey— 2.0% | |||
150,000 | Alpha Borough, NJ BANs, 1.000%, 3/4/2022 | 150,004 | |
10,000 | Bergen County, NJ Improvement Authority, (Series 2020A) BANs, (GTD by Bergen County, NJ), 3.000%, 8/15/2022 | 10,093 | |
75,000 | Evesham Township, NJ, UT GO Bonds (Series 2014), 4.000%, 6/1/2022 | 75,627 | |
198,599 | Hillsdale Borough, NJ BANs, 1.000%, 12/2/2022 | 198,433 | |
146,967 | Moonachie, NJ BANs, 1.000%, 10/14/2022 | 146,934 | |
173,050 | Pine Beach, NJ BANs, 1.000%, 10/28/2022 | 172,961 | |
255,000 | Ramsey, NJ BANs, 1.250%, 1/6/2023 | 255,121 | |
100,000 | Rutgers, The State University of New Jersey, General Obligation Refunding Bonds (Series 2013J), 5.000%, 5/1/2022 | 100,725 | |
315,000 | Southampton Township, NJ BANs, 1.000%, 7/6/2022 | 315,029 | |
150,000 | Spotswood, NJ, (Series A) BANs, 1.000%, 6/16/2022 | 150,025 |
Principal Amount | Value | ||
1 | SHORT-TERM MUNICIPALS— continued | ||
New Jersey— continued | |||
$ 75,000 | Vernon Township, NJ, UT GO Refunding Bonds (Series 2020A), 4.000%, 1/1/2023 | $ 76,913 | |
TOTAL | 1,651,865 | ||
New York— 5.7% | |||
250,000 | Elwood, NY Union Free School District TANs, 1.250%, 6/24/2022 | 250,300 | |
250,000 | Erie County, NY IDA (Buffalo, NY City School District), School Facility Refunding Revenue Bonds (Series 2015A), 5.000%, 5/1/2022 | 251,847 | |
200,000 | Hempstead, NY Union Free School District, (Series A) RANs, 1.000%, 6/30/2022 | 200,035 | |
1,000,000 | La Grange, NY, (Series A) BANs, 1.250%, 5/12/2022 | 1,001,068 | |
765,000 | Metropolitan Transportation Authority, NY (MTA Dedicated Tax Fund), Bond Anticipation Notes (Series 2019A), 5.000%, 3/1/2022 | 765,000 | |
1,220,000 | Metropolitan Transportation Authority, NY (MTA Transportation Revenue), Bond Anticipation Notes (Series 2019B-1) BANs, 5.000%, 5/15/2022 | 1,231,062 | |
285,000 | New York City Capital Resource Corp. (Cobble Hill Health Center, Inc.), Loan Enhanced Assistance Program (Series 2008B-3) Weekly VRDNs, (Bank of America N.A. LOC), 0.250%, 3/3/2022 | 285,000 | |
100,000 | New York City, NY Transitional Finance Authority, (Series F-1), 3.000%, 5/1/2022 | 100,400 | |
30,000 | New York City, NY, UT GO Bonds (Fiscal 2016 Series C), 5.000%, 8/1/2022 | 30,539 | |
250,000 | New York State Dormitory Authority (Fordham University), Revenue Bonds (Series 2016A), 4.000%, 7/1/2022 | 252,774 | |
80,000 | New York State Dormitory Authority (NYU Langone Hospitals), Revenue Bonds (Series 2014), 5.000%, 7/1/2022 | 81,132 | |
100,000 | Niagara Frontier Transportation Authority (Buffalo Niagara International Airport), Airport Revenue Bonds (Series 2019A), 5.000%, 4/1/2022 | 100,343 | |
34,800 | Rhinebeck, NY Central School District, General Obligation Bonds (Series 2021), 3.000%, 6/15/2022 | 35,031 | |
TOTAL | 4,584,531 | ||
North Carolina— 4.7% | |||
3,000,000 | Person County, NC Industrial Facilities & Pollution Control Financing Authority (Certainteed Gypsum, Inc.), (Series 2010) Weekly VRDNs, (Credit Industriel et Commercial LOC), 0.240%, 3/3/2022 | 3,000,000 | |
720,000 | Selma, NC Housing Authority Multi-Family Revenue (GREH Lizzie Mill, NC TC LLC), Tender Option Bond Certificates (Series 2022-XF1133) Weekly VRDNs, (Deutsche Bank AG LIQ)/(Deutsche Bank AG LOC), 0.420%, 3/3/2022 | 720,000 | |
75,000 | Warren County, NC, Water District General Obligation Refunding Bonds (Series 2015), 5.000%, 6/1/2022 | 75,802 | |
TOTAL | 3,795,802 | ||
Ohio— 1.9% | |||
1,345,000 | Hamilton County, OH (Block 3 Community Urban Redevelopment Corporation), (Series 2004) Weekly VRDNs, (Citizens Bank, N.A., Providence LOC), 0.230%, 3/3/2022 | 1,345,000 |
Principal Amount | Value | ||
1 | SHORT-TERM MUNICIPALS— continued | ||
Ohio— continued | |||
$ 150,000 | Harrison, OH BANs, 2.000%, 10/25/2022 | $ 150,729 | |
TOTAL | 1,495,729 | ||
Oklahoma— 5.6% | |||
600,000 | Cleveland County, OK Educational Facilities Authority (Norman Public Schools), Education Facilities Lease Revenue Bonds (Series 2019), 5.000%, 6/1/2022 | 606,569 | |
2,350,000 | Garfield County, OK Industrial Authority Pollution Control (Oklahoma Gas and Electric Co.), (Series 1995-A) Weekly VRDNs, 0.280%, 3/2/2022 | 2,350,000 | |
1,605,000 | Muskogee, OK Industrial Trust (Oklahoma Gas and Electric Co.), (Series 1997A) Weekly VRDNs, 0.280%, 3/2/2022 | 1,605,000 | |
TOTAL | 4,561,569 | ||
Oregon— 0.2% | |||
175,000 | Portland, OR Sewer System, First Lien Revenue Refunding Bonds (2016 Series A), 5.000%, 6/15/2022 | 177,227 | |
Pennsylvania— 0.7% | |||
465,000 | East Hempfield Township, PA IDA (BGT Realty), (Series of 2005) Weekly VRDNs, (Fulton Bank, N.A. LOC), 0.570%, 3/3/2022 | 465,000 | |
50,000 | Lancaster County, PA, UT GO Bonds (Series A of 2016), (Build America Mutual Assurance INS), 5.000%, 5/1/2022 | 50,362 | |
60,000 | Northampton County, PA IDA (Binney & Smith Inc.), (Series 1997B) Weekly VRDNs, (JPMorgan Chase Bank, N.A. LOC), 0.370%, 3/2/2022 | 60,000 | |
TOTAL | 575,362 | ||
South Carolina— 1.7% | |||
1,400,000 | South Carolina Association of Governmental Organizations (SCAGO), (Series 2021B), (GTD by South Carolina School District Credit Enhancement Program), 3.000%, 3/1/2022 | 1,400,000 | |
Texas— 14.0% | |||
500,000 | Austin, TX Affordable Public Finance Authority (LDG Belmont LP), (Series 2021-XF1102) Weekly VRDNs, (Deutsche Bank AG LIQ)/(Deutsche Bank AG LOC), 0.450%, 3/3/2022 | 500,000 | |
2,000,000 | Calhoun, TX Port Authority (BP PLC), (Series 1998) Weekly VRDNs, 0.250%, 3/2/2022 | 2,000,000 | |
115,000 | Corpus Christi, TX Utility System, Junior Lien Revenue Improvement Bonds (Series 2015C), 5.000%, 7/15/2022 | 116,859 | |
50,000 | Killeen, TX, GO Refunding Bonds (Series 2013), 5.000%, 8/1/2022 | 50,851 | |
110,000 | Missouri City, TX, GO Refunding Bonds (Series 2016), 5.000%, 6/15/2022 | 111,380 | |
500,000 | North Central Texas HFDC (Gala at Waxahachie, LP), Tender Option Bond Trust Certificates (Series 2021-XF1099) Weekly VRDNs, (Deutsche Bank AG LIQ)/(Deutsche Bank AG LOC), 0.450%, 3/3/2022 | 500,000 | |
250,000 | Port of Corpus Christi Authority of Nueces County, TX (Flint Hills Resources LLC), (Series 2002A) Weekly VRDNs, 0.270%, 3/2/2022 | 250,000 | |
500,000 | Port of Port Arthur Navigation District of Jefferson County, TX (Motiva Enterprises LLC), (Series 2010A) Daily VRDNs, 0.200%, 3/1/2022 | 500,000 | |
2,950,000 | Port of Port Arthur Navigation District of Jefferson County, TX (Motiva Enterprises LLC), (Series 2010B) Daily VRDNs, 0.200%, 3/1/2022 | 2,950,000 |
Principal Amount | Value | ||
1 | SHORT-TERM MUNICIPALS— continued | ||
Texas— continued | |||
$ 900,000 | Port of Port Arthur Navigation District of Jefferson County, TX (Motiva Enterprises LLC), (Series 2010C) Daily VRDNs, 0.220%, 3/1/2022 | $ 900,000 | |
3,000,000 | Port of Port Arthur Navigation District of Jefferson County, TX (Motiva Enterprises LLC), (Series 2010D) Weekly VRDNs, 0.300%, 3/2/2022 | 3,000,000 | |
450,000 | Port of Port Arthur Navigation District of Jefferson County, TX (Motiva Enterprises LLC), (Series 2010E) Weekly VRDNs, 0.330%, 3/2/2022 | 450,000 | |
TOTAL | 11,329,090 | ||
Utah— 1.7% | |||
1,000,000 | Emery County, UT (Pacificorp), PCRB (Series 1994) Weekly VRDNs, 0.250%, 3/2/2022 | 1,000,000 | |
400,000 | Salt Lake City, UT (Salt Lake City International Airport), Airport Revenue Bonds (Series 2017A), 5.000%, 7/1/2022 | 405,244 | |
TOTAL | 1,405,244 | ||
Virginia— 0.8% | |||
405,000 | Blacksburg, VA, UT GO Capital Improvement Bonds (Series 2020B), 5.000%, 3/1/2022 | 405,000 | |
245,000 | Lynchburg, VA Economic Development Authority (Centra Health Obligated Group), (Series 2017C) Weekly VRDNs, (Truist Bank LOC), 0.270%, 3/3/2022 | 245,000 | |
TOTAL | 650,000 | ||
West Virginia— 0.5% | |||
200,000 | Mason County, WV (Appalachian Power Co.), PCRBs (Series L), 2.750%, 10/1/2022 | 201,424 | |
235,000 | West Virginia State Hospital Finance Authority (Cabell Huntington Hospital), (Series 2008A) Weekly VRDNs, (Truist Bank LOC), 0.270%, 3/3/2022 | 235,000 | |
TOTAL | 436,424 | ||
Wisconsin— 6.2% | |||
4,000,000 | Appleton, WI Redevelopment Authority (Fox Cities Performing Arts Center), (Series 2001B) Weekly VRDNs, (Associated Bank, N.A. LOC), 0.320%, 3/2/2022 | 4,000,000 | |
115,000 | Grafton, WI, UT GO Promissory Notes (Series 2019A), 2.000%, 6/1/2022 | 115,391 | |
100,000 | La Crosse, WI IDA (GGP Inc.), (Series A) Weekly VRDNs, (Wells Fargo Bank, N.A. LOC), 0.370%, 3/3/2022 | 100,000 | |
450,000 | Wisconsin Public Finance Authority (Atlantic Housing Foundation, Inc.), Mizuho 3a-7 (2022-MIZ9092) VRENs, (GTD by Mizuho Bank Ltd.)/(Mizuho Bank Ltd. LIQ), 0.450%, 3/3/2022 | 450,000 | |
340,000 | Wisconsin State Transportation, Revenue Bonds (2012 Series 1), 5.000%, 7/1/2022 | 344,997 | |
TOTAL | 5,010,388 | ||
TOTAL SHORT-TERM MUNICIPALS (IDENTIFIED COST $81,449,977) | 81,437,692 |
Principal Amount | Value | ||
MUNICIPAL BONDS— 0.2% | |||
Louisiana— 0.2% | |||
$ 150,000 | Louisiana Stadium and Exposition District, BANS (Series 2021), 4.000%, 7/3/2023 | $ 154,210 | |
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $155,469) | 154,210 | ||
TOTAL INVESTMENT IN SECURITIES—100.7% (IDENTIFIED COST $81,605,446)2 | 81,591,902 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.7)%3 | (555,471) | ||
TOTAL NET ASSETS—100% | $81,036,431 |
1 | Current rate and current maturity or next reset date shown for floating rate notes and variable rate notes/demand instruments. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
2 | Also represents cost of investments for federal tax purposes. |
3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
The following acronym(s) are used throughout this portfolio: | ||
BANs | —Bond Anticipation Notes | |
CP | —Commercial Paper | |
FHLMC | —Federal Home Loan Mortgage Corporation | |
GO | —General Obligation | |
GTD | —Guaranteed | |
HFA | —Housing Finance Authority | |
HFDC | —Health Facility Development Corporation | |
IDA | —Industrial Development Authority | |
IDB | —Industrial Development Bond | |
IFA | —Industrial Finance Authority | |
INS | —Insured | |
LIQ | —Liquidity Agreement | |
LOC | —Letter of Credit | |
PCRB | —Pollution Control Revenue Bond | |
PCRBs | —Pollution Control Revenue Bonds | |
PUTTERs | —Puttable Tax-Exempt Receipts | |
RANs | —Revenue Anticipation Notes | |
TANs | —Tax Anticipation Notes | |
TOBs | —Tender Option Bonds | |
TRANs | —Tax and Revenue Anticipation Notes | |
UT | —Unlimited Tax | |
VMTP | —Variable Municipal Term Preferred | |
VRDNs | —Variable Rate Demand Notes | |
VRDPs | —Variable Rate Demand Preferreds | |
VRENs | —Variable Rate Extendible Notes |
Six Months Ended (unaudited) 2/28/2022 | Period Ended 8/31/20211 | |
Net Asset Value, Beginning of Period | $10.00 | $10.00 |
Income From Investment Operations: | ||
Net investment income (loss) | 0.01 | 0.02 |
Net realized and unrealized gain (loss) | (0.00)2 | (0.00)2 |
TOTAL FROM INVESTMENT OPERATIONS | 0.01 | 0.02 |
Less Distributions: | ||
Distributions from net investment income | (0.01) | (0.02) |
Net Asset Value, End of Period | $10.00 | $10.00 |
Total Return3 | 0.12% | 0.16% |
Ratios to Average Net Assets: | ||
Net expenses4 | 0.05%5 | 0.05%5 |
Net investment income | 0.24%5 | 0.28%5 |
Expense waiver/reimbursement6 | 0.88%5 | 2.06%5 |
Supplemental Data: | ||
Net assets, end of period (000 omitted) | $81,036 | $10,247 |
Portfolio turnover7 | 0% | 0% |
1 | Reflects operations for the period from February 3, 2021 (commencement of operations) to August 31, 2021. |
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. |
February 28, 2022 (unaudited)
Assets: | |
Investment in securities, at value (identified cost $81,605,446) | $81,591,902 |
Cash | 77,311 |
Income receivable | 176,393 |
Total Assets | 81,845,606 |
Liabilities: | |
Payable for investments purchased | 613,781 |
Payable for shares redeemed | 165,149 |
Income distribution payable | 2,858 |
Payable to adviser (Note 5) | 1,543 |
Payable for administrative fee (Note 5) | 174 |
Payable for Directors’/Trustees’ fees (Note 5) | 198 |
Accrued expenses (Note 5) | 25,472 |
Total Liabilities | 809,175 |
Net assets for 8,105,234 shares outstanding | $81,036,431 |
Net Assets Consist of: | |
Paid-in capital | $81,052,344 |
Total distributable earnings (loss) | (15,913) |
Total Net Assets | $81,036,431 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
$81,036,431 ÷ 8,105,234 shares outstanding, no par value, unlimited shares authorized | $10.00 |
Six Months Ended February 28, 2022 (unaudited)
Investment Income: | |
Interest | $32,351 |
Expenses: | |
Investment adviser fee (Note 5) | 27,589 |
Administrative fee (Note 5) | 8,926 |
Transfer agent fees | 1,148 |
Directors’/Trustees’ fees (Note 5) | 198 |
Auditing fees | 9,423 |
Legal fees | 4,128 |
Portfolio accounting fees | 27,845 |
Share registration costs | 12,942 |
Printing and postage | 9,155 |
Miscellaneous (Note 5) | 2,081 |
TOTAL EXPENSES | 103,435 |
Waiver and Reimbursement: | |
Waiver of investment adviser fee (Note 5) | (27,589) |
Reimbursement of other operating expenses (Note 5) | (69,787) |
TOTAL WAIVER AND REIMBURSEMENT | (97,376) |
Net expenses | 6,059 |
Net investment income | 26,292 |
Realized and Unrealized Gain (Loss) on Investments: | |
Net realized loss on investments | (1,991) |
Net change in unrealized appreciation of investments | (14,159) |
Net realized and unrealized gain (loss) on investments | (16,150) |
Change in net assets resulting from operations | $10,142 |
Six Months Ended (unaudited) 2/28/2022 | Period Ended 8/31/20211 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $26,292 | $16,133 |
Net realized gain (loss) | (1,991) | (665) |
Net change in unrealized appreciation/depreciation | (14,159) | 615 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 10,142 | 16,083 |
Distributions to Shareholders | (26,058) | (16,080) |
Share Transactions: | ||
Proceeds from sale of shares | 74,418,645 | 10,231,152 |
Net asset value of shares issued to shareholders in payment of distributions declared | 21,240 | 16,054 |
Cost of shares redeemed | (3,634,747) | — |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 70,805,138 | 10,247,206 |
Change in net assets | 70,789,222 | 10,247,209 |
Net Assets: | ||
Beginning of period | 10,247,209 | — |
End of period | $81,036,431 | $10,247,209 |
1 | Reflects operations for the period from February 3, 2021 (commencement of operations) to August 31, 2021. |
Six Months Ended 2/28/2022 | Period Ended 8/31/20211 | |
Shares sold | 7,441,864 | 1,023,116 |
Shares issued to shareholders in payment of distributions declared | 2,124 | 1,605 |
Shares redeemed | (363,475) | — |
NET CHANGE RESULTING FROM FUND SHARE TRANSACTIONS | 7,080,513 | 1,024,721 |
1 | Reflects operations for the period from February 3, 2021 (commencement of operations) to August 31, 2021. |
Short-Term | Long-Term | Total |
$665 | $— | $665 |
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 |
Beginning Account Value 9/1/2021 | Ending Account Value 2/28/2022 | Expenses Paid During Period1 | |
Actual | $1,000 | $1,001.20 | $0.252 |
Hypothetical (assuming a 5% return before expenses) | $1,000 | $1,024.55 | $0.252 |
1 | Expenses are equal to the Fund’s annualized net expense ratio of 0.05%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). |
2 | Actual and Hypothetical expenses paid during the period utilizing the Fund’s current Fee Limit of 0.25% (as reflected in the Notes to Financial Statements, Note 5 under Expense Limitation), multiplied by the average account value over the period, multiplied by 181/365 (to reflect expenses paid as if they had been in effect throughout the most recent one-half-year period) would be $1.24 and 1.25, respectively. |
Annual Evaluation of Adequacy and Effectiveness
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
Federated Hermes Funds
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Share Class | Ticker | Institutional | FHHIX | R6 | FHHRX |
Federated Hermes SDG Engagement High Yield Credit Fund
A Portfolio of Federated Hermes Adviser Series
Sector Composition | Percentage of Total Net Assets |
Banking | 12.1% |
Capital Goods | 9.9% |
Telecommunications | 9.0% |
Basic Industries | 8.4% |
Utilities | 4.9% |
Health Care | 3.8% |
Media | 3.6% |
Energy | 3.5% |
Real Estate | 3.4% |
Automotive | 3.0% |
Consumer Goods | 2.0% |
Insurance | 2.0% |
Consumer Non-Cyclical | 1.6% |
Technology & Electronics | 1.5% |
Financial Services | 1.3% |
Retail | 0.8% |
Services | 0.6% |
Home Products & Furnishings | 0.2% |
U.S. Treasury | 21.8% |
Derivatives2 | 2.4% |
Other Assets and Liabilities—Net3 | 4.2% |
TOTAL | 100% |
Foreign Currency Par Amount or Principal Amount | Value in U.S. Dollars | ||
CORPORATE BONDS—71.6% | |||
Automotive—3.0% | |||
EUR 230,000 | Faurecia, Sr. Unsecd. Note, 2.375%, 6/15/2027 | $239,191 | |
$325,000 | Goodyear Tire & Rubber Co., Sr. Unsecd. Note, 4.875%, 3/15/2027 | 325,416 | |
EUR 250,000 | LKQ Italia Bondco Di Lkq, Sr. Unsecd. Note, REGS, 3.875%, 4/1/2024 | 290,968 | |
525,000 | Volvo Car AB, Sr. Unsecd. Note, Series EMTN, 2.000%, 1/24/2025 | 584,292 | |
TOTAL | 1,439,867 | ||
Banking—12.1% | |||
200,000 | 1 | ABN Amro Bank NV, Jr. Sub. Deb., 4.750%, 9/22/2027 | 223,690 |
$200,000 | Akbank TAS, Sr. Unsecd. Note, REGS, 5.125%, 3/31/2025 | 190,711 | |
250,000 | Ally Financial, Inc., Sr. Sub. Note, 5.750%, 11/20/2025 | 266,340 | |
EUR 100,000 | Alpha Bank AE, Sub., 5.500% (5YR EUR Swap Annual +5.823%), 6/11/2031 | 103,552 | |
$200,000 | 1 | Argentum Netherlands B.V., Sub., 4.625%, 8/15/2022 | 196,298 |
200,000 | Banco Btg Pactual/Cayman, Sub., REGS, 7.750% (Prime +5.257%), 2/15/2029 | 207,974 | |
200,000 | 1 | Banco Mercantil De Norte, Jr. Sub. Deb., REGS, 7.500%, 6/27/2029 | 195,780 |
EUR 100,000 | Bank of Ireland Group PLC, Sub. Note, Series EMTN, 1.375% (6-month Tbill Auction High Disc Rate +1.650%), 8/11/2031 | 105,866 | |
$400,000 | Bank of Ireland Group PLC, Sub., Series EMTN, 4.125% (Prime +2.500%), 9/19/2027 | 401,067 | |
400,000 | 1 | BNP Paribas, Jr. Sub. Note, REGS, 4.500%, 2/25/2030 | 364,370 |
EUR 200,000 | 1 | Caixa Geral de Depositos S.A. (CGD), Jr. Sub. Deb., 10.750%, 3/30/2022 | 225,589 |
200,000 | Cellnex Finance Co. SA, Series EMTN, 2.000%, 2/15/2033 | 188,451 | |
$175,000 | CIT Group, Inc., Sub., 6.125%, 3/9/2028 | 200,274 | |
EUR 400,000 | 1 | Commerzbank AG, Jr. Sub. Note, 4.250%, 10/9/2027 | 405,333 |
200,000 | 1 | Cooperatieve Rabobank UA, Jr. Sub. Note, 3.250%, 12/29/2026 | 210,347 |
$400,000 | 1 | Credit Suisse Group AG, Jr. Sub. Deb., REGS, 5.100%, 1/24/2030 | 373,000 |
EUR 100,000 | Deutsche Bank AG, Sr. Unsecd. Note, Series EMTN, 5.625% (5YR EUR Swap Annual +6.000%), 5/19/2031 | 123,226 | |
$200,000 | 1 | DNB Bank ASA, Jr. Sub. Note, Series -, 4.875%, 11/12/2024 | 199,875 |
Foreign Currency Par Amount or Principal Amount | Value in U.S. Dollars | ||
CORPORATE BONDS—continued | |||
Banking—continued | |||
$300,000 | 1 | ING Groep N.V., Jr. Sub. Note, Series NC10, 4.250%, 5/16/2031 | $262,305 |
480,000 | Intesa Sanpaolo SpA, Sub. Deb., 5.710%, 1/15/2026 | 506,296 | |
200,000 | Itau Unibanco Holding SA, Sub. Deb., REGS, 4.500% (Prime +2.822%), 11/21/2029 | 198,040 | |
400,000 | 1 | NatWest Markets plc, Jr. Sub. Note, 4.600%, 6/28/2031 | 361,600 |
200,000 | 1 | UBS Group AG, Jr. Sub. Note, REGS, 4.375%, 2/10/2031 | 181,250 |
EUR 200,000 | 1 | UniCredit SpA, Jr. Sub. Note, Series EMTN, 3.875%, 6/3/2027 | 193,785 |
TOTAL | 5,885,019 | ||
Basic Industries—8.4% | |||
$325,000 | Alcoa Nederland Holding B.V., Sr. Unsecd. Note, 144A, 4.125%, 3/31/2029 | 326,379 | |
150,000 | Ashland LLC, Sr. Unsecd. Note, 144A, 3.375%, 9/1/2031 | 138,235 | |
EUR 150,000 | Ashland Services B.V., Sr. Unsecd. Note, REGS, 2.000%, 1/30/2028 | 155,566 | |
$400,000 | Cemex SAB de CV, REGS, 3.875%, 7/11/2031 | 356,020 | |
225,000 | CF Industries Holdings, Inc., Sr. Unsecd. Note, 3.450%, 6/1/2023 | 229,250 | |
40,000 | Cleveland-Cliffs, Inc., Sr. Unsecd. Note, 7.000%, 3/15/2027 | 41,914 | |
EUR 100,000 | Graphic Packaging International, LLC, Unsecd. Note, 144A, 2.625%, 2/1/2029 | 103,670 | |
100,000 | Graphic Packaging International Corp., Sr. Unsecd. Note, REGS, 2.625%, 2/1/2029 | 103,670 | |
$200,000 | GUSAP III L.P., Sr. Unsecd. Note, REGS, 4.250%, 1/21/2030 | 199,985 | |
EUR 320,000 | Huntsman International LLC, Sr. Unsecd. Note, 4.250%, 4/1/2025 | 388,697 | |
$28,000 | KB HOME, Sr. Unsecd. Note, 4.000%, 6/15/2031 | 26,919 | |
72,000 | Novelis Corporation, Sr. Unsecd. Note, 144A, 3.875%, 8/15/2031 | 66,426 | |
257,000 | Novelis Corporation, Sr. Unsecd. Note, 144A, 4.750%, 1/30/2030 | 251,944 | |
EUR 300,000 | Olympus Water US Holding Corp., Sr. Unsecd. Note, REGS, 5.375%, 10/1/2029 | 301,056 | |
$200,000 | Orbia Advance Corp. SAB de CV, Sr. Unsecd. Note, REGS, 2.875%, 5/11/2031 | 181,055 | |
EUR 100,000 | Sappi Papier Holding GmbH, Sr. Unsecd. Note, REGS, 3.125%, 4/15/2026 | 108,356 | |
100,000 | 1 | Solvay S.A., Jr. Sub. Note, 2.500%, 12/2/2025 | 107,500 |
$200,000 | SPCM SA, Sr. Unsecd. Note, 144A, 3.375%, 3/15/2030 | 181,365 |
Foreign Currency Par Amount or Principal Amount | Value in U.S. Dollars | ||
CORPORATE BONDS—continued | |||
Basic Industries—continued | |||
$200,000 | Summit Digitel Infrastructure, 144A, 2.875%, 8/12/2031 | $180,080 | |
450,000 | Suzano Austria GmbH, Sr. Unsecd. Note, 5.000%, 1/15/2030 | 461,486 | |
186,000 | Taylor Morrison Communities, Inc./Monarch Communities, Inc., Sr. Unsecd. Note, 144A, 5.875%, 6/15/2027 | 195,356 | |
TOTAL | 4,104,929 | ||
Capital Goods—9.9% | |||
EUR 100,000 | Ardagh Metal Packaging, Sr. Unsecd. Note, REGS, 3.000%, 9/1/2029 | 100,184 | |
GBP 600,000 | Ardagh Packaging Finance PLC/Ardagh Holdings, Sr. Unsecd. Note, REGS, 4.750%, 7/15/2027 | 724,414 | |
EUR 200,000 | Ball Corp., Sr. Unsecd. Note, 1.500%, 3/15/2027 | 216,681 | |
$425,000 | Ball Corp., Sr. Unsecd. Note, 2.875%, 8/15/2030 | 389,034 | |
EUR 100,000 | Berry Global, Inc., Sec. Fac. Bond, REGS, 1.500%, 1/15/2027 | 108,380 | |
300,000 | Berry Global, Inc., Term Loan—1st Lien, REGS, 1.000%, 1/15/2025 | 327,378 | |
500,000 | Crown European Holdings SA, Sr. Unsecd. Note, REGS, 2.875%, 2/1/2026 | 565,618 | |
$250,000 | Klabin Austria Gmbh, Sr. Unsecd. Note, 144A, 3.200%, 1/12/2031 | 215,095 | |
400,000 | Klabin Austria Gmbh, Sr. Unsecd. Note, REGS, 3.200%, 1/12/2031 | 344,152 | |
EUR 100,000 | Kleopatra Holdings 2 SCA, Sr. Unsecd. Note, REGS, 6.500%, 9/1/2026 | 91,943 | |
300,000 | Rexel S.A., Sr. Unsecd. Note, 2.125%, 6/15/2028 | 320,661 | |
$375,000 | Sealed Air Corp., Sr. Unsecd. Note, 144A, 4.000%, 12/1/2027 | 371,874 | |
EUR 102,000 | Sig Combibloc Purchaser, Sr. Unsecd. Note, 144A, 2.125%, 6/18/2025 | 115,025 | |
250,000 | Sig Combibloc Purchaser, Sr. Unsecd. Note, REGS, 2.125%, 6/18/2025 | 281,923 | |
300,000 | Smurfit Kappa Treasury Unlimited Company, Sr. Unsecd. Note, 1.500%, 9/15/2027 | 338,598 | |
100,000 | Trivium Packaging Finance BV, Sec. Fac. Bond, REGS, 3.750%, 8/15/2026 | 107,091 | |
200,000 | Verallia, Sr. Unsecd. Note, 1.875%, 11/10/2031 | 203,619 | |
TOTAL | 4,821,670 | ||
Consumer Goods—2.0% | |||
200,000 | Arcelik AS, Sr. Unsecd. Note, 3.000%, 5/27/2026 | 210,796 | |
100,000 | Kraft Heinz Foods Co., 2.000%, 6/30/2023 | 114,059 | |
GBP 200,000 | Kraft Heinz Foods Co., Sr. Unsecd. Note, 4.125%, 7/1/2027 | 285,655 |
Foreign Currency Par Amount or Principal Amount | Value in U.S. Dollars | ||
CORPORATE BONDS—continued | |||
Consumer Goods—continued | |||
$83,000 | Post Holdings, Inc., Sr. Unsecd. Note, 144A, 4.500%, 9/15/2031 | $76,971 | |
318,000 | Post Holdings, Inc., Sr. Unsecd. Note, 144A, 4.625%, 4/15/2030 | 299,748 | |
TOTAL | 987,229 | ||
Consumer Non-Cyclical—1.6% | |||
460,000 | Hanesbrands, Inc., Sr. Unsecd. Note, 144A, 4.875%, 5/15/2026 | 469,000 | |
342,000 | Levi Strauss & Co., Sr. Unsecd. Note, 144A, 3.500%, 3/1/2031 | 319,252 | |
TOTAL | 788,252 | ||
Energy—3.5% | |||
$300,000 | Aker BP ASA, Sr. Unsecd. Note, REGS, 3.750%, 1/15/2030 | 304,245 | |
GBP 100,000 | 1 | BP Capital Markets PLC, Sub., 4.250%, 3/22/2027 | 128,798 |
$100,000 | DCP Midstream Operating LP, Sr. Unsecd. Note, 5.375%, 7/15/2025 | 106,030 | |
275,000 | EnLink Midstream Partners LP, Sr. Unsecd. Note, 5.450%, 6/1/2047 | 233,501 | |
32,000 | EnLink Midstream Partners LP, Sr. Unsecd. Note, 5.600%, 4/1/2044 | 27,331 | |
200,000 | Enterprise Products Operating LLC, Jr. Sub. Deb., 5.375%, 2/15/2078 | 185,911 | |
300,000 | EQT Corp., Sr. Unsecd. Note, 3.900%, 10/1/2027 | 303,690 | |
39,000 | EQT Corp., Sr. Unsecd. Note, 7.500%, 2/1/2030 | 46,586 | |
387,000 | Range Resources Corp., Sr. Unsecd. Note, 4.875%, 5/15/2025 | 393,326 | |
TOTAL | 1,729,418 | ||
Financial Services—1.3% | |||
230,000 | 1 | Barclays Bank plc, Jr. Sub. Deb., 6.278%, 12/15/2034 | 295,550 |
400,000 | China Ping An Insurance Overseas (Holdings) Ltd., Sr. Secd. Note, Series EMTN, 2.850%, 8/12/2031 | 356,706 | |
TOTAL | 652,256 | ||
Health Care—3.8% | |||
419,000 | Centene Corp., 2.500%, 3/1/2031 | 386,444 | |
EUR 200,000 | 1 | Eurofins Scientific SE, Jr. Sub. Note, 3.250%, 11/13/2025 | 218,644 |
480,000 | Grifols Escrow Issuer SA, Sr. Unsecd. Note, REGS, 3.875%, 10/15/2028 | 493,449 | |
$50,000 | HCA, Inc., Sr. Unsecd. Note, 5.375%, 2/1/2025 | 53,007 | |
EUR 100,000 | Iqvia, Inc., Sr. Unsecd. Note, 144A, 2.875%, 6/15/2028 | 106,391 | |
300,000 | Iqvia, Inc., Sr. Unsecd. Note, REGS, 2.250%, 3/15/2029 | 304,978 |
Foreign Currency Par Amount or Principal Amount | Value in U.S. Dollars | ||
CORPORATE BONDS—continued | |||
Health Care—continued | |||
$149,000 | Mozart Debt Merger Sub, Inc., Sec. Fac. Bond, 144A, 3.875%, 4/1/2029 | $141,595 | |
150,000 | Tenet Healthcare Corp., 144A, 4.875%, 1/1/2026 | 151,221 | |
TOTAL | 1,855,729 | ||
Home Products & Furnishings—0.2% | |||
EUR 100,000 | Nobel Bidco BV, Sr. Note, REGS, 3.125%, 6/15/2028 | 101,193 | |
Insurance—2.0% | |||
100,000 | 1 | Caisse Nat Reassurance, Jr. Sub. Note, 6.375%, 5/28/2024 | 121,236 |
GBP 325,000 | 1 | Phoenix Group Holdings PLC, Jr. Sub. Deb., 5.750%, 4/26/2028 | 427,209 |
EUR 200,000 | 1 | UnipolSai Assicurazioni SpA, Jr. Sub. Note, 6.375%, 4/27/2030 | 224,811 |
$200,000 | Zurich Finance Ireland, Sub. Note, Series EMTN, 3.000% (6-month Tbill Auction High Disc Rate +2.777%), 4/19/2051 | 180,402 | |
TOTAL | 953,658 | ||
Media—3.6% | |||
400,000 | Altice France Holding SA, Sr. Unsecd. Note, REGS, 4.000%, 2/15/2028 | 395,617 | |
EUR 100,000 | Lagardere S.C.A., Sr. Unsecd. Note, 1.750%, 10/7/2027 | 109,281 | |
$450,000 | Netflix, Inc., Sr. Unsecd. Note, REGS, 3.625%, 6/15/2030 | 540,146 | |
230,000 | UPC Broadband Finco BV, Sr. Note, 144A, 4.875%, 7/15/2031 | 219,997 | |
EUR 100,000 | VZ Vendor Financing B.V., Sr. Unsecd. Note, REGS, 2.875%, 1/15/2029 | 102,573 | |
391,000 | Ziggo Bond Co. BV, Sr. Unsecd. Note, REGS, 3.375%, 2/28/2030 | 390,494 | |
TOTAL | 1,758,108 | ||
Real Estate—3.4% | |||
300,000 | CANPACK SA and Eastern PA Land Investment Holding LLC, REGS, 2.375%, 11/1/2027 | 316,260 | |
$200,000 | Country Garden Holdings Co., 5.125%, 1/17/2025 | 155,000 | |
EUR 400,000 | 1 | Heimstaden Bostad AB, Jr. Sub. Note, 2.625%, 2/1/2027 | 381,642 |
$200,000 | Logan Group Co. Ltd., Sr. Unsecd. Note, 4.500%, 1/13/2028 | 56,000 | |
GBP 200,000 | MPT Operating Partnership LP / MPT Finance Corp., Sr. Unsecd. Note, 3.692%, 6/5/2028 | 268,055 | |
$32,000 | MPT Operating Partnership LP/MPT Finance Corp., Sr. Unsecd. Note, 3.500%, 3/15/2031 | 30,209 | |
EUR 400,000 | 1 | Samhallsbyggnadsbolaget i Norden AB, Jr. Sub. Note, 2.625%, 12/14/2025 | 375,582 |
Foreign Currency Par Amount or Principal Amount | Value in U.S. Dollars | ||
CORPORATE BONDS—continued | |||
Real Estate—continued | |||
$200,000 | Shimao Group Holdings Ltd., Sr. Unsecd. Note, 5.200%, 1/16/2027 | $56,000 | |
TOTAL | 1,638,748 | ||
Retail—0.8% | |||
GBP 200,000 | Marks & Spencer PLC, Sr. Unsecd. Note, 3.250%, 7/10/2027 | 268,127 | |
$100,000 | Marks & Spencer PLC, Sr. Unsecd. Note, REGS, 7.125%, 12/1/2037 | 111,232 | |
TOTAL | 379,359 | ||
Services—0.6% | |||
EUR 300,000 | Catalent Pharma Solutions, Inc., Sr. Unsecd. Note, REGS, 2.375%, 3/1/2028 | 308,985 | |
Technology & Electronics—1.5% | |||
$100,000 | Dell, Inc., Sr. Unsecd. Note, 5.400%, 9/10/2040 | 102,658 | |
50,000 | NXP BV / NXP Funding LLC / NXP USA Inc., Sr. Unsecd. Note, 144A, 2.500%, 5/11/2031 | 46,913 | |
69,000 | NXP BV / NXP Funding LLC / NXP USA Inc., Sr. Unsecd. Note, 144A, 3.400%, 5/1/2030 | 69,709 | |
578,000 | Seagate HDD Cayman, Sr. Unsecd. Note, 3.375%, 7/15/2031 | 527,425 | |
TOTAL | 746,705 | ||
Telecommunications—9.0% | |||
EUR 100,000 | Altice Financing SA, Sec. Fac. Bond, REGS, 4.250%, 8/15/2029 | 100,922 | |
100,000 | Cellnex Telecom S.A., Conv. Bond, Series CLNX, 0.750%, 11/20/2031 | 97,226 | |
100,000 | Cellnex Telecom S.A., Sr. Unsecd. Note, 1.875%, 6/26/2029 | 102,258 | |
200,000 | Iliad SA, Sr. Secd. Note, 1.875%, 2/11/2028 | 194,322 | |
100,000 | Infrastrutture Wireless Italiane SPA, Sr. Unsecd. Note, Series EMTN, 1.750%, 4/19/2031 | 103,632 | |
200,000 | Infrastrutture Wireless Italiane SPA, Sr. Unsecd. Note, Series GMTN, 1.625%, 10/21/2028 | 213,793 | |
$425,000 | Lumen Technologies, Inc., Sr. Unsecd. Note, Series P, 7.600%, 9/15/2039 | 374,797 | |
400,000 | Millicom International Cellular S. A., Sr. Unsecd. Note, REGS, 4.500%, 4/27/2031 | 374,840 | |
300,000 | 1 | Network i2i Ltd., Sub. Deb., REGS, 5.650%, 1/15/2025 | 302,280 |
100,000 | Sprint Corp., Sr. Unsecd. Note, 7.875%, 9/15/2023 | 107,624 | |
50,000 | Sprint Nextel Corp., Sr. Unsecd. Note, 6.000%, 11/15/2022 | 51,497 | |
51,000 | T-Mobile USA, Inc., 2.250%, 11/15/2031 | 46,223 |
Foreign Currency Par Amount or Principal Amount | Value in U.S. Dollars | ||
CORPORATE BONDS—continued | |||
Telecommunications—continued | |||
$21,000 | T-Mobile USA, Inc., 2.550%, 2/15/2031 | $19,696 | |
300,000 | T-Mobile USA, Inc., Sr. Unsecd. Note, 2.250%, 2/15/2026 | 289,843 | |
325,000 | Telecom Italia Capital SA, Sr. Unsecd. Note, 6.000%, 9/30/2034 | 311,142 | |
EUR 500,000 | 1 | Telefonica Europe BV, Jr. Sub. Note, 2.376%, 2/12/2029 | 483,580 |
$200,000 | Turk Telekomunikasyon AS, Sr. Unsecd. Note, REGS, 4.875%, 6/19/2024 | 193,866 | |
250,000 | Veon Holdings BV, Sr. Unsecd. Note, REGS, 4.000%, 4/9/2025 | 108,750 | |
GBP 449,000 | Vmed O2 UK Financing I PLC, Sec. Fac. Bond, REGS, 4.500%, 7/15/2031 | 544,723 | |
$400,000 | VTR Comunicaciones SpA, Sec. Fac. Bond, REGS, 4.375%, 4/15/2029 | 382,242 | |
TOTAL | 4,403,256 | ||
Utilities—4.9% | |||
57,000 | AES Corp., Sr. Unsecd. Note, 2.450%, 1/15/2031 | 52,807 | |
200,000 | AES Gener S.A., Jr. Sub. Note, REGS, 6.350%, 10/7/2079 | 200,065 | |
443,000 | Clearway Energy Operating LLC, Sr. Unsecd. Note, 144A, 3.750%, 2/15/2031 | 412,770 | |
EUR 200,000 | 1 | Enel SpA, Jr. Sub. Note, Series 9.5Y, 1.875%, 6/8/2030 | 191,214 |
300,000 | Energias de Portugal SA, Sub., Series NC5., 1.500% (5YR EUR Swap Annual +1.888%), 3/14/2082 | 300,321 | |
$200,000 | Greenko Power II Ltd., Sr. Unsecd. Note, REGS, 4.300%, 12/13/2028 | 190,590 | |
EUR 300,000 | Orsted A/S, Sub., 1.750% (5YR EUR Swap Annual +1.952%), 12/9/3019 | 319,672 | |
$300,000 | TerraForm Power Operating LLC, Sr. Unsecd. Note, 144A, 4.750%, 1/15/2030 | 294,943 | |
EUR 400,000 | 1 | Veolia Environnement SA, Jr. Sub. Note, Series ., 2.500%, 1/20/2029 | 408,696 |
TOTAL | 2,371,078 | ||
TOTAL CORPORATE BONDS (IDENTIFIED COST $37,422,157) | 34,925,459 |
Foreign Currency Par Amount or Principal Amount | Value in U.S. Dollars | ||
U.S. TREASURY—21.8% | |||
$4,992,200 | United States Treasury Note, 0.625%, 12/31/2027 | $4,672,680 | |
6,050,000 | United States Treasury Note, 0.750%, 12/31/2023 | 5,975,264 | |
TOTAL U.S. TREASURY (IDENTIFIED COST $10,885,583) | 10,647,944 | ||
TOTAL INVESTMENT IN SECURITIES—93.4% (IDENTIFIED COST $48,307,740)2 | 45,573,403 | ||
OTHER ASSETS AND LIABILITIES - NET—6.6%3 | 3,240,019 | ||
TOTAL NET ASSETS—100% | $48,813,422 |
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized Appreciation (Depreciation) |
Short Futures | ||||
4United States Treasury Notes 10-Year Note | 11 | $1,401,813 | March 2022 | $(9,195) |
4United States Treasury Ultra Long Bond | 6 | $1,115,625 | March 2022 | $(10,406) |
4Eurex Deutschland Euro-Bund | 7 | $1,311,058 | March 2022 | $57,758 |
NET UNREALIZED APPRECIATION ON FUTURES CONTRACTS | $38,157 |
Counter- party | Reference Entity | Buy/ Sell | Pay/ Receive Fixed Rate | Expiration Date | Implied Credit Spread at 2/28/ 20225 | Notional Amount | Market Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | |
OTC Swaps: | ||||||||||
BNP Paribas | Anglo American PLC | Sell | 5.00 | 12/20/2026 | 1.08% | 75,000 | 14,619 | 16,001 | (1,382) | |
BNP Paribas | ArcelorMittal | Sell | 5.00 | 12/20/2026 | 1.71% | 150,000 | 24,688 | 19,287 | 5,401 | |
BNP Paribas | Cleveland- Cliffs Inc. | Sell | 5.00 | 12/20/2026 | 2.87% | 17,000 | 1,536 | 1,857 | (321) | |
BNP Paribas | Dell Inc. | Sell | 1.00 | 12/20/2026 | 1.03% | 125,000 | (186) | 1,733 | (1,919) | |
BNP Paribas | General Motors Co. | Sell | 5.00 | 12/20/2026 | 1.01% | 157,000 | 25,640 | 29,053 | (3,413) | |
BNP Paribas | Hess Corp. | Sell | 1.00 | 12/20/2026 | 1.26% | 100,000 | (1,031) | (683) | (348) | |
BNP Paribas | Iron Mountain Inc. | Sell | 5.00 | 12/20/2026 | 2.37% | 60,000 | 7,032 | 9,173 | (2,141) | |
BNP Paribas | Tenet Healthcare Corp. | Sell | 5.00 | 12/20/2026 | 3.02% | 338,000 | 27,906 | 25,066 | 2,840 | |
BNP Paribas | Valeo SA | Sell | 1.00 | 12/20/2026 | 2.05% | 100,000 | (5,807) | (1,912) | (3,895) | |
BNP Paribas | Volvo Car AB | Sell | 5.00 | 12/20/2026 | 0.82% | 50,000 | 8,571 | 12,044 | (3,473) | |
Credit Suisse | Ally Financial Inc. | Sell | 5.00 | 12/20/2026 | 1.24% | 58,000 | 9,665 | 10,352 | (687) | |
Goldman Sachs | AES Corp. | Sell | 5.00 | 12/20/2026 | 0.84% | 100,000 | 16,306 | 19,532 | (3,226) | |
Goldman Sachs | Anglo American | Sell | 5.00 | 12/20/2026 | 1.08% | 35,000 | 6,822 | 7,767 | (945) | |
Goldman Sachs | Cleveland- Cliffs Inc. | Sell | 5.00 | 12/20/2026 | 2.87% | 66,000 | 5,964 | 8,188 | (2,224) | |
Goldman Sachs | CSC Holdings LLC | Sell | 5.00 | 12/20/2026 | 2.72% | 300,000 | 3,670 | 22,277 | (18,607) | |
Goldman Sachs | Dell Inc. | Sell | 1.00 | 12/20/2026 | 1.03% | 375,000 | (557) | 1,334 | (1,891) |
Counter- party | Reference Entity | Buy/ Sell | Pay/ Receive Fixed Rate | Expiration Date | Implied Credit Spread at 2/28/ 20225 | Notional Amount | Market Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | |
Goldman Sachs | Ford Motor Co. | Sell | 5.00 | 12/20/2024 | 1.57% | 50,000 | 4,555 | 4,744 | (189) | |
Goldman Sachs | Ford Motor Co. | Sell | 5.00 | 12/20/2026 | 2.08% | 110,000 | 13,757 | 16,652 | (2,895) | |
Goldman Sachs | General Motors Co. | Sell | 5.00 | 12/20/2026 | 1.01% | 300,000 | 48,992 | 55,921 | (6,929) | |
Goldman Sachs | Iron Mountain Inc. | Sell | 5.00 | 12/20/2026 | 2.37% | 155,000 | 18,166 | 24,741 | (6,575) | |
Goldman Sachs | KB Home | Sell | 5.00 | 12/20/2026 | 2.20% | 372,000 | 44,272 | 53,025 | (8,752) | |
Goldman Sachs | Kraft Heinz Foods Co | Sell | 1.00 | 12/20/2026 | 0.82% | 202,000 | 1,081 | 1,707 | (626) | |
Goldman Sachs | Lumen Technologies Inc. | Sell | 1.00 | 12/20/2026 | 5.32% | 25,000 | (4,089) | (2,199) | (1,890) | |
Goldman Sachs | Nokia Oyj | Sell | 5.00 | 12/20/2026 | 0.99% | 325,000 | 62,644 | 74,021 | (11,377) | |
Goldman Sachs | Occidental Petroleum Corp. | Sell | 1.00 | 12/20/2026 | 2.06% | 578,000 | (15,569) | (24,090) | 8,521 | |
Goldman Sachs | Stellantis N.V. | Sell | 5.00 | 12/20/2026 | 1.32% | 575,000 | 107,405 | 125,167 | (17,763) | |
Goldman Sachs | Toll Brothers, Inc. | Sell | 1.00 | 12/20/2026 | 1.51% | 335,000 | (7,773) | (3,200) | (4,573) | |
JP Morgan Chase | Ally Financial Inc. | Sell | 5.00 | 12/20/2026 | 0.93% | 20,000 | 3,333 | 3,727 | (394) | |
JP Morgan Chase | Anglo American PLC | Sell | 5.00 | 12/20/2026 | 1.08% | 200,000 | 38,984 | 43,527 | (4,543) | |
JP Morgan Chase | Cellnex Telecom SA | Sell | 5.00 | 12/20/2026 | 2.08% | 100,000 | 13,984 | 20,276 | (6,292) | |
JP Morgan Chase | ArcelorMittal | Sell | 5.00 | 12/20/2026 | 1.71% | 50,000 | 8,229 | 10,000 | (1,771) | |
JP Morgan Chase | Cleveland- Cliffs Inc. | Sell | 5.00 | 12/20/2026 | 2.87% | 62,000 | 5,602 | 6,685 | (1,083) | |
JP Morgan Chase | Ford Motor Co. | Sell | 5.00 | 12/20/2024 | 1.57% | 325,000 | 29,610 | 30,907 | (1,297) |
Counter- party | Reference Entity | Buy/ Sell | Pay/ Receive Fixed Rate | Expiration Date | Implied Credit Spread at 2/28/ 20225 | Notional Amount | Market Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | |
JP Morgan Chase | Hess Corp. | Sell | 1.00 | 12/20/2026 | 1.26% | 100,000 | (1,031) | (749) | (282) | |
JP Morgan Chase | General Motors Co. | Sell | 5.00 | 12/20/2026 | 1.01% | 50,000 | 8,166 | 9,392 | (1,226) | |
JP Morgan Chase | HCA, Inc. | Sell | 5.00 | 12/20/2026 | 1.32% | 360,000 | 59,146 | 64,450 | (5,304) | |
JP Morgan Chase | Lennar Corp. | Sell | 5.00 | 12/20/2026 | 0.94% | 425,000 | 69,143 | 79,549 | (10,406) | |
JP Morgan Chase | KB Home | Sell | 5.00 | 12/20/2026 | 2.20% | 120,000 | 14,281 | 19,452 | (5,171) | |
JP Morgan Chase | NRG Energy Inc. | Sell | 5.00 | 12/20/2026 | 2.36% | 500,000 | 55,477 | 68,442 | (12,964) | |
JP Morgan Chase | Schaeffler AG | Sell | 5.00 | 12/20/2026 | 1.63% | 310,000 | 47,950 | 55,972 | (8,022) | |
JP Morgan Chase | Occidental Petroleum Corp. | Sell | 1.00 | 12/20/2026 | 2.06% | 121,000 | (3,259) | (5,279) | 2,020 | |
JP Morgan Chase | Telecom Italia SpA | Sell | 1.00 | 12/20/2026 | 1.77% | 200,000 | (19,148) | (8,193) | (10,955) | |
JP Morgan Chase | Valeo SA | Sell | 1.00 | 12/20/2026 | 2.05% | 270,000 | (15,680) | (5,565) | (10,115) | |
Morgan Stanley | Markit CDX North America High Yield Index Series 37 | Sell | 5.00 | 12/20/2026 | 3.65% | 1,200,000 | 67,673 | 73,730 | (6,057) | |
Morgan Stanley | Markit iTraxx Europe Crossover Index Series 36 | Sell | 5.00 | 12/20/2026 | 3.45% | 3,890,000 | 285,703 | 416,953 | (131,251) | |
TOTAL CREDIT DEFAULT SWAPS | $1,086,442 | $1,390,834 | $(304,392) |
Settlement Date | Counterparty | Foreign Currency Units to Receive/Deliver | In Exchange For | Unrealized Appreciation (Depreciation) |
Contracts Purchased: | ||||
3/16/2022 | Barclays Bank plc | 200,000 EUR | $225,742 | $(1,327) |
3/16/2022 | Barclays Bank plc | 200,000 EUR | $226,607 | $(2,193) |
3/16/2022 | RBC Europe | 100,000 EUR | $112,434 | $(227) |
3/16/2022 | RBC Europe | 150,000 EUR | $170,107 | $(1,796) |
3/16/2022 | RBC Europe | 400,000 EUR | $457,873 | $(9,045) |
Contracts Sold: | ||||
3/16/2022 | RBC Europe | 4,800,000 EUR | $5,424,744 | $38,802 |
3/16/2022 | RBC Europe | 2,200,000 GBP | $2,919,226 | $(32,576) |
3/16/2022 | State Street | 4,800,000 EUR | $5,424,969 | $39,027 |
3/16/2022 | State Street | 4,800,000 EUR | $5,424,970 | $39,027 |
NET UNREALIZED APPRECIATION ON FOREIGN EXCHANGE CONTRACTS | $69,692 |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
Corporate Bonds | $— | $34,925,459 | $— | $34,925,459 |
U.S. Treasury | — | 10,647,944 | — | 10,647,944 |
TOTAL SECURITIES | $— | $45,573,403 | $— | $45,573,403 |
Other Financial Instruments: | ||||
Assets: | ||||
Futures | $57,758 | $— | $— | $57,758 |
Foreign Exchange Contracts | — | 116,856 | — | 116,856 |
Swap Contracts | — | 1,160,572 | — | 1,160,572 |
Liabilities: | ||||
Futures | $(19,601) | $— | $— | $(19,601) |
Foreign Exchange Contracts | — | (47,164) | — | (47,164) |
Swap Contracts | — | (74,130) | — | (74,130) |
TOTAL OTHER FINANCIAL INSTRUMENTS | $38,157 | $1,156,134 | $— | $1,194,291 |
EMTN | —Euro Medium Term Note |
EUR | —Euro |
GBP | —Great British Pound |
GMTN | —Global Medium Term Note |
Six Months Ended (unaudited) 2/28/2022 | Year Ended 8/31/2021 | Period Ended 8/31/20201 | |
Net Asset Value, Beginning of Period | $10.81 | $10.34 | $10.00 |
Income From Investment Operations: | |||
Net investment income | 0.09 | 0.26 | 0.37 |
Net realized and unrealized gain (loss) | (0.77) | 0.58 | 0.23 |
TOTAL FROM INVESTMENT OPERATIONS | (0.68) | 0.84 | 0.60 |
Less Distributions: | |||
Distributions from net investment income | (0.20) | (0.37) | (0.26) |
Distributions from net realized gain | (0.22) | — | — |
TOTAL DISTRIBUTIONS | (0.42) | (0.37) | (0.26) |
Net Asset Value, End of Period | $9.71 | $10.81 | $10.34 |
Total Return2 | (6.52)% | 8.27% | 6.19% |
Ratios to Average Net Assets: | |||
Net expenses3 | 0.61%5 | 0.62%4 | 0.62%4,5 |
Net investment income | 1.87%5 | 2.54% | 4.08%5 |
Expense waiver/reimbursement6 | 0.80%5 | 0.95% | 1.10%5 |
Supplemental Data: | |||
Net assets, end of period (000 omitted) | $48,813 | $47,738 | $32,603 |
Portfolio turnover7 | 35% | 27% | 36% |
Six Months Ended (unaudited) 2/28/20221 | Period Ended 8/31/20212 | |
Net Asset Value, Beginning of Period | $10.81 | $10.73 |
Income From Investment Operations: | ||
Net investment income | 0.08 | 0.11 |
Net realized and unrealized gain (loss) | (0.76) | 0.02 |
TOTAL FROM INVESTMENT OPERATIONS | (0.68) | 0.13 |
Less Distributions: | ||
Distributions from net investment income | (0.20) | (0.05) |
Distributions from net realized gain | (0.22) | — |
TOTAL DISTRIBUTIONS | (0.42) | (0.05) |
Net Asset Value, End of Period | $9.71 | $10.81 |
Total Return3 | (6.53)% | 1.24% |
Ratios to Average Net Assets: | ||
Net expenses4 | 0.56%5 | 0.53%5 |
Net investment income | 1.97%5 | 2.39%5 |
Expense waiver/reimbursement6 | 0.00%5,7 | 0.22%5 |
Supplemental Data: | ||
Net assets, end of period (000 omitted) | $08 | $08 |
Portfolio turnover9 | 35% | 27%10 |
February 28, 2022 (unaudited)
Assets: | ||
Investment in securities, at value (identified cost $48,307,740) | $45,573,403 | |
Cash | 960,524 | |
Cash denominated in foreign currencies (identified cost $504,551) | 500,823 | |
Deposit at broker for futures | 75,960 | |
Cash collateral on swap contracts | 45,341 | |
Swaps, at value (net premium paid of $1,439,637) | 1,160,572 | |
Income receivable | 452,846 | |
Receivable for periodic payments from swap contracts | 119,551 | |
Unrealized appreciation on foreign exchange contracts | 116,856 | |
Receivable for shares sold | 93,614 | |
Prepaid expenses | 7,645 | |
Receivable for investments sold | 6,985 | |
TOTAL ASSETS | 49,114,120 | |
Liabilities: | ||
Swaps, at value (net premium received of $48,803) | $74,130 | |
Unrealized depreciation on foreign exchange contracts | 47,164 | |
Payable for shares redeemed | 31,856 | |
Payable for investments purchased | 6,985 | |
Payable for variation margin on futures contracts | 43,595 | |
Payable for portfolio accounting fees | 61,909 | |
Payable for share registration costs | 18,426 | |
Payable for auditing fees | 14,962 | |
Payable for investment adviser fee (Note 5) | 1,058 | |
Payable for administrative fee (Note 5) | 613 | |
TOTAL LIABILITIES | 300,698 | |
Net assets for 5,027,978 shares outstanding | $48,813,422 | |
Net Assets Consists of: | ||
Paid-in capital | $51,056,075 | |
Total distributable earnings (loss) | (2,242,653) | |
TOTAL NET ASSETS | $48,813,422 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | ||
Institutional Shares: | ||
$48,813,332 ÷ 5,027,969 shares outstanding, no par value, unlimited shares authorized | $9.71 | |
Class R6 Shares: | ||
$90 ÷ 9* shares outstanding, no par value, unlimited shares authorized | $9.71 |
Six Months Ended February 28, 2022 (unaudited)
Investment Income: | |||
Interest (net of foreign tax withheld of $355) | $606,110 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $146,432 | ||
Administrative fee (Note 5) | 20,944 | ||
Custodian fees | 7,108 | ||
Transfer agent fees (Note 2) | 13,091 | ||
Auditing fees | 21,370 | ||
Legal fees | 4,612 | ||
Portfolio accounting fees | 90,528 | ||
Share registration costs | 19,362 | ||
Printing and postage | 9,766 | ||
Miscellaneous (Note 5) | 12,557 | ||
TOTAL EXPENSES | 345,770 | ||
Waiver and Reimbursement: | |||
Waiver of investment adviser fee (Note 5) | $(146,432) | ||
Reimbursement of other operating expenses (Note 5) | (49,444) | ||
TOTAL WAIVER AND REIMBURSEMENT | (195,876) | ||
Net expenses | 149,894 | ||
Net investment income | 456,216 | ||
Realized and Unrealized Gain (Loss) on Investments, Foreign Exchange Contracts, Futures Contracts, Swap Contracts and Foreign Currency Transactions: | |||
Net realized gain on investments and foreign currency transactions | 207,081 | ||
Net realized gain on foreign exchange contracts | 1,216,001 | ||
Net realized gain on futures contracts | 156,418 | ||
Net realized gain on swap contracts | 205,455 | ||
Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency | (4,931,693) | ||
Net change in unrealized appreciation of foreign exchange contracts | (329,616) | ||
Net change in unrealized appreciation of futures contracts | 36,892 | ||
Net change in unrealized appreciation of swaps | (379,777) | ||
Net realized and unrealized gain (loss) on investments, foreign exchange contracts, futures contracts, swap contracts and foreign currency transactions | (3,819,239) | ||
Change in net assets resulting from operations | $(3,363,023) |
Six Months Ended (unaudited) 2/28/2022 | Year Ended 8/31/2021 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $456,216 | $1,017,969 |
Net realized gain | 1,784,955 | 626,338 |
Net change in unrealized appreciation/depreciation | (5,604,194) | 1,418,263 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | (3,363,023) | 3,062,570 |
Distributions to Shareholders: | ||
Institutional Shares | (1,971,136) | (1,366,335) |
Class R6 Shares1 | (4) | 02 |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (1,971,140) | (1,366,335) |
Share Transactions: | ||
Proceeds from sale of shares | 7,122,754 | 13,625,205 |
Net asset value of shares issued to shareholders in payment of distributions declared | 1,855,965 | 1,279,458 |
Cost of shares redeemed | (2,569,171) | (1,465,940) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 6,409,548 | 13,438,723 |
Change in net assets | 1,075,385 | 15,134,958 |
Net Assets: | ||
Beginning of period | 47,738,037 | 32,603,079 |
End of period | $48,813,422 | $47,738,037 |
Transfer Agent Fees Incurred | |
Institutional Shares | $13,091 |
Fair Value of Derivative Instruments | ||||
Asset | Liability | |||
Statement of Assets and Liabilities Location | Fair Value | 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 | $116,856 | Unrealized depreciation on foreign exchange contracts | $47,164 |
Credit contracts | Swaps, at value | 1,160,572 | Swaps, at value | 74,130 |
Interest rate | Receivable for variation margin on futures contracts | — | Payable for variation margin on futures contracts | (38,157)* |
Total derivatives not accounted for as hedging instruments under ASC Topic 815 | $1,277,428 | $83,137 |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | ||||
Foreign Exchange Contracts | Interest Rate Contracts | Credit Contracts | Total | |
Credit Default Swap Contracts | $— | $— | $205,455 | $205,455 |
Foreign Exchange Contracts | 1,216,001 | — | — | 1,216,001 |
Futures Contracts | — | 156,418 | — | 156,418 |
TOTAL | $1,216,001 | $156,418 | $205,455 | $1,577,874 |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | ||||
Foreign Exchange Contracts | Interest Rate Contracts | Credit Contracts | Total | |
Credit Default Swap Contracts | $— | $— | $(379,777) | $(379,777) |
Foreign Exchange Contracts | (329,616) | — | — | (329,616) |
Futures Contracts | — | 36,892 | — | 36,892 |
TOTAL | $(329,616) | $36,892 | $(379,777) | ($672,501) |
Gross Amounts Not Offset in the Statement of Assets and Liabilities | ||||
Transaction | Gross Asset Derivatives Presented in Statement of Assets and Liabilities | Financial Instrument | Collateral Received | Net Amount |
Swap Contracts | $1,160,572 | $(74,130) | $— | $1,086,442 |
Foreign Exchange Contracts | 116,856 | (47,164) | — | 69,692 |
TOTAL | $1,277,428 | $(121,294) | $— | $1,156,134 |
Transaction | Gross Liability Derivatives Presented in Statement of Assets and Liabilities | Financial Instrument | Collateral Pledged | Net Amount |
Swap Contracts | $74,130 | $(74,130) | $— | $— |
Foreign Exchange Contracts | 47,164 | (47,164) | — | — |
TOTAL | $121,294 | $(121,294) | $— | $— |
Six Months Ended 2/28/2022 | Year Ended August 31, 2021 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 683,443 | $7,122,754 | 1,279,585 | $13,625,105 |
Shares issued to shareholders in payment of distributions declared | 179,077 | 1,855,965 | 120,730 | 1,279,458 |
Shares redeemed | (248,922) | (2,569,171) | (137,890) | (1,465,940) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 613,598 | $6,409,548 | 1,262,425 | $13,438,623 |
Six Months Ended 2/28/2022 | Period Ended August 31, 20211 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | — | $— | 9 | $100 |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | — | $— | 9 | $100 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 613,598 | $6,409,548 | 1,262,434 | $13,438,723 |
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 |
Purchases | $25,378,683 |
Sales | $15,621,688 |
Beginning Account Value 9/1/2021 | Ending Account Value 2/28/2022 | Expenses Paid During Period1 | |
Actual: | |||
Institutional Shares | $1,000 | $934.80 | $2.93 |
Class R6 Shares | $1,000 | $934.70 | $2.69 |
Hypothetical (assuming a 5% return before expenses): | |||
Institutional Shares | $1,000 | $1,021.77 | $3.06 |
Class R6 Shares | $1,000 | $1,022.02 | $2.81 |
Institutional Shares | 0.61% |
Class R6 Shares | 0.56% |
Annual Evaluation of Adequacy and Effectiveness
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31423A549
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 Adviser Series
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date April 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 April 22, 2022
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date April 22, 2022