Federated Hermes Short Duration High Yield ETF
Portfolio of Investments
November 30, 2023 (unaudited)
Principal Amount or Shares | Value | ||
CORPORATE BONDS—69.2% | |||
Aerospace/Defense—1.1% | |||
$ 150,000 | TransDigm, Inc., Sec. Fac. Bond, 144A, 6.250%, 3/15/2026 | $ 148,965 | |
150,000 | TransDigm, Inc., Sr. Sub., Series WI, 5.500%, 11/15/2027 | 144,364 | |
TOTAL | 293,329 | ||
Airlines—1.6% | |||
291,667 | American Airlines, Inc./AAdvantage Loyalty IP Ltd., 144A, 5.500%, 4/20/2026 | 287,134 | |
150,000 | Mileage Plus Holdings LLC, 144A, 6.500%, 6/20/2027 | 149,174 | |
TOTAL | 436,308 | ||
Automotive—4.3% | |||
100,000 | Adient Global Holdings Ltd., Sec. Fac. Bond, 144A, 7.000%, 4/15/2028 | 101,607 | |
150,000 | Clarios Global LP, Sec. Fac. Bond, 144A, 6.750%, 5/15/2028 | 151,346 | |
100,000 | Dornoch Debt Merger Sub, Inc., Sr. Unsecd. Note, 144A, 6.625%, 10/15/2029 | 85,295 | |
350,000 | Ford Motor Credit Co. LLC, Sr. Unsecd. Note, 4.063%, 11/1/2024 | 341,793 | |
200,000 | IHO Verwaltungs GmbH, Sec. Fac. Bond, 144A, 6.000%, 5/15/2027 | 190,546 | |
33,000 | KAR Auction Services, Inc., Sr. Unsecd. Note, 144A, 5.125%, 6/1/2025 | 32,136 | |
250,000 | Panther BF Aggregator 2 LP, Sr. Unsecd. Note, 144A, 8.500%, 5/15/2027 | 251,498 | |
TOTAL | 1,154,221 | ||
Banking—0.5% | |||
150,000 | Ally Financial, Inc., Sr. Sub. Note, 5.750%, 11/20/2025 | 147,211 | |
Building Materials—2.0% | |||
200,000 | Interface, Inc., Sr. Unsecd. Note, 144A, 5.500%, 12/1/2028 | 179,736 | |
100,000 | Srs Distribution, Inc., Sr. Unsecd. Note, 144A, 6.125%, 7/1/2029 | 88,323 | |
180,000 | Standard Industries, Inc., Sr. Unsecd. Note, 144A, 5.000%, 2/15/2027 | 172,353 | |
100,000 | White Cap Parent LLC, Sr. Sub. Secd. Note, 144A, 8.250%, 3/15/2026 | 97,811 | |
TOTAL | 538,223 | ||
Cable Satellite—4.7% | |||
150,000 | CCO Holdings LLC/Cap Corp., Sr. Sub. Secd. Note, 144A, 5.500%, 5/1/2026 | 146,747 | |
200,000 | CSC Holdings LLC, Sr. Unsecd. Note, 144A, 5.500%, 4/15/2027 | 176,819 | |
200,000 | DIRECTV Holdings LLC, Sec. Fac. Bond, 144A, 5.875%, 8/15/2027 | 179,968 | |
200,000 | DISH Network Corp., Sec. Fac. Bond, 144A, 11.750%, 11/15/2027 | 198,526 | |
200,000 | Sirius XM Radio, Inc., Sr. Unsecd. Note, 144A, 5.000%, 8/1/2027 | 190,018 | |
200,000 | Telenet Finance Luxembourg, Sec. Fac. Bond, 144A, 5.500%, 3/1/2028 | 182,500 | |
200,000 | Ziggo Finance BV, Sr. Unsecd. Note, 144A, 6.000%, 1/15/2027 | 190,522 | |
TOTAL | 1,265,100 | ||
Chemicals—1.9% | |||
150,000 | Axalta Coat/Dutch Holding BV, Sr. Unsecd. Note, 144A, 4.750%, 6/15/2027 | 142,202 | |
200,000 | Cheever Escrow Issuer, Sec. Fac. Bond, 144A, 7.125%, 10/1/2027 | 191,936 | |
200,000 | Illuminate Buyer LLC/Illuminate Holdings IV, Inc., Sr. Unsecd. Note, 144A, 9.000%, 7/1/2028 | 188,000 | |
TOTAL | 522,138 | ||
Construction Machinery—0.7% | |||
200,000 | United Rentals, Inc., Sr. Unsecd. Note, 5.500%, 5/15/2027 | 197,048 | |
Consumer Cyclical Services—2.4% | |||
100,000 | Allied Universal Holdco LLC, Sec. Fac. Bond, 144A, 6.625%, 7/15/2026 | 97,168 | |
100,000 | Garda World Security Corp., Sec. Fac. Bond, 144A, 4.625%, 2/15/2027 | 95,082 | |
125,000 | Garda World Security Corp., Sr. Unsecd. Note, 144A, 9.500%, 11/1/2027 | 120,567 | |
150,000 | Match Group, Inc., Sr. Unsecd. Note, 144A, 5.000%, 12/15/2027 | 143,634 |
1
Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Consumer Cyclical Services—continued | |||
$ 200,000 | The Brink’s Co., Sr. Unsecd. Note, 144A, 5.500%, 7/15/2025 | $ 197,680 | |
TOTAL | 654,131 | ||
Consumer Products—1.5% | |||
25,000 | Acushnet Co., Sr. Unsecd. Note, 144A, 7.375%, 10/15/2028 | 25,675 | |
250,000 | BCPE Empire Holdings, Inc., Sr. Unsecd. Note, 144A, 7.625%, 5/1/2027 | 238,730 | |
150,000 | Edgewell Personal Care Co., Sr. Unsecd. Note, 144A, 5.500%, 6/1/2028 | 142,875 | |
TOTAL | 407,280 | ||
Diversified Manufacturing—2.2% | |||
250,000 | Gates Global LLC, Sr. Unsecd. Note, 144A, 6.250%, 1/15/2026 | 247,285 | |
350,000 | WESCO Distribution, Inc., Sr. Unsecd. Note, 144A, 7.125%, 6/15/2025 | 350,498 | |
TOTAL | 597,783 | ||
Finance Companies—2.1% | |||
100,000 | 1 | American Express Co., Sr. Unsecd. Note, 6.277% (SOFR +0.930%), 3/4/2025 | 100,125 |
175,000 | Navient Corp., Sr. Unsecd. Note, 6.750%, 6/15/2026 | 174,335 | |
150,000 | Navient Corp., Sr. Unsecd. Note, Series MTN, 6.125%, 3/25/2024 | 149,904 | |
150,000 | United Wholesale Mortgage, LLC, Sr. Unsecd. Note, 144A, 5.500%, 11/15/2025 | 145,826 | |
TOTAL | 570,190 | ||
Food & Beverage—1.7% | |||
250,000 | Aramark Services, Inc., Sr. Unsecd. Note, 144A, 5.000%, 4/1/2025 | 248,088 | |
100,000 | Performance Food Group, Inc., Sr. Unsecd. Note, 144A, 5.500%, 10/15/2027 | 96,789 | |
100,000 | US Foods, Inc., Sr. Unsecd. Note, 144A, 6.875%, 9/15/2028 | 101,388 | |
TOTAL | 446,265 | ||
Gaming—4.6% | |||
100,000 | Affinity Gaming LLC, 144A, 6.875%, 12/15/2027 | 87,056 | |
250,000 | Boyd Gaming Corp., Sr. Unsecd. Note, 4.750%, 12/1/2027 | 236,672 | |
200,000 | Churchill Downs, Inc., Sr. Unsecd. Note, 144A, 5.500%, 4/1/2027 | 192,986 | |
200,000 | Colt Merger Sub, Inc., Sr. Secd. Note, 144A, 6.250%, 7/1/2025 | 198,849 | |
150,000 | Mohegan Tribal Gaming Authority, 144A, 8.000%, 2/1/2026 | 140,437 | |
150,000 | Penn National Gaming, Inc., Sr. Unsecd. Note, 144A, 5.625%, 1/15/2027 | 142,708 | |
250,000 | VICI Properties LP/ VICI Note Co., Inc., Sr. Unsecd. Note, 144A, 5.625%, 5/1/2024 | 248,914 | |
TOTAL | 1,247,622 | ||
Health Care—1.1% | |||
150,000 | Ardent Health Services, Sr. Unsecd. Note, 144A, 5.750%, 7/15/2029 | 124,875 | |
175,000 | Tenet Healthcare Corp., Term Loan - 2nd Lien, 144A, 6.250%, 2/1/2027 | 174,248 | |
TOTAL | 299,123 | ||
Independent Energy—4.9% | |||
100,000 | Ascent Resources Utica Holdings LLC/ ARU Finance Corp., Sr. Unsecd. Note, 144A, 7.000%, 11/1/2026 | 98,622 | |
100,000 | Ascent Resources Utica Holdings LLC/ ARU Finance Corp., Sr. Unsecd. Note, 144A, 8.250%, 12/31/2028 | 100,089 | |
150,000 | Callon Petroleum Corp., Sr. Unsecd. Note, Series WI, 6.375%, 7/1/2026 | 148,526 | |
125,000 | Chesapeake Energy Corp., Sr. Unsecd. Note, 144A, 5.500%, 2/1/2026 | 122,534 | |
150,000 | Crownrock LP/ Crownrock F, Sr. Unsecd. Note, 144A, 5.625%, 10/15/2025 | 148,500 | |
150,000 | Permian Resources Operating LLC, Sr. Unsecd. Note, 144A, 5.375%, 1/15/2026 | 145,097 | |
250,000 | Range Resources Corp., Sr. Unsecd. Note, 4.875%, 5/15/2025 | 246,041 | |
75,000 | Sitio Royalties Operating Partnership LP / Sitio Finance Corp., Sr. Unsecd. Note, 144A, 7.875%, 11/1/2028 | 75,294 | |
250,000 | SM Energy Co., Sr. Unsecd. Note, 6.750%, 9/15/2026 | 246,733 | |
TOTAL | 1,331,436 | ||
Industrial - Other—0.5% | |||
150,000 | Madison Iaq LLC, Sr. Unsecd. Note, 144A, 5.875%, 6/30/2029 | 125,849 | |
Insurance - P&C—4.9% | |||
282,890 | Ardonagh Midco 2 PLC, Sr. Unsecd. Note, 144A, 11.500% / 12.75% PIK, 1/15/2027 | 278,647 |
2
Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Insurance - P&C—continued | |||
$ 200,000 | AssuredPartners, Inc., Sr. Unsecd. Note, 144A, 7.000%, 8/15/2025 | $ 199,514 | |
300,000 | Hub International Ltd., Sr. Unsecd. Note, 144A, 7.000%, 5/1/2026 | 298,428 | |
260,000 | NFP Corp., Sr. Unsecd. Note, 144A, 6.875%, 8/15/2028 | 231,492 | |
300,000 | USIS Merger Subsidiary, Inc., Sr. Unsecd. Note, 144A, 6.875%, 5/1/2025 | 297,738 | |
TOTAL | 1,305,819 | ||
Leisure—1.6% | |||
175,000 | Carnival Corp., Sr. Unsecd. Note, 144A, 5.750%, 3/1/2027 | 166,351 | |
125,000 | NCL Corp. Ltd., Sr. Unsecd. Note, 144A, 5.875%, 3/15/2026 | 118,438 | |
151,000 | Six Flags Theme Parks, Sec. Fac. Bond, 144A, 7.000%, 7/1/2025 | 151,522 | |
TOTAL | 436,311 | ||
Lodging—1.6% | |||
200,000 | Hilton Domestic Operating Company, Inc., Sr. Unsecd. Note, 144A, 5.375%, 5/1/2025 | 198,590 | |
25,000 | RHP Hotel Property/RHP Finance Corp., Sr. Unsecd. Note, 144A, 7.250%, 7/15/2028 | 25,388 | |
200,000 | Royal Caribbean Cruises, Ltd., Sr. Unsecd. Note, 144A, 5.500%, 8/31/2026 | 194,559 | |
TOTAL | 418,537 | ||
Media Entertainment—2.4% | |||
150,000 | Gray Escrow, Inc., Sr. Unsecd. Note, 144A, 7.000%, 5/15/2027 | 136,312 | |
200,000 | iHeartCommunications, Inc., 144A, 5.250%, 8/15/2027 | 153,273 | |
125,000 | Outfront Media Capital LLC / Outfront Media Capital Corp., Sr. Unsecd. Note, 144A, 5.000%, 8/15/2027 | 117,863 | |
150,000 | Scripps Escrow, Inc., Sr. Unsecd. Note, 144A, 5.875%, 7/15/2027 | 126,375 | |
100,000 | Univision Communications, Inc., Sec. Fac. Bond, 144A, 8.000%, 8/15/2028 | 101,084 | |
TOTAL | 634,907 | ||
Midstream—5.2% | |||
125,000 | AmeriGas Partners LP, Sr. Unsecd. Note, 5.500%, 5/20/2025 | 122,421 | |
250,000 | Antero Midstream Partners LP, Sr. Unsecd. Note, 144A, 5.750%, 3/1/2027 | 244,609 | |
300,000 | EQM Midstream Partners, LP, Sr. Unsecd. Note, 144A, 6.000%, 7/1/2025 | 297,678 | |
250,000 | Hess Midstream Operations LP, Sr. Unsecd. Note, 144A, 5.625%, 2/15/2026 | 246,875 | |
250,000 | Solaris Midstream Holdings LLC, Sr. Unsecd. Note, 144A, 7.625%, 4/1/2026 | 242,771 | |
250,000 | Suburban Propane Partners LP, Sr. Unsecd. Note, 5.875%, 3/1/2027 | 246,742 | |
TOTAL | 1,401,096 | ||
Oil Field Services—2.8% | |||
100,000 | Archrock Partners LP / Archrock Partners Finance Corp., Sr. Unsecd. Note, 144A, 6.875%, 4/1/2027 | 99,085 | |
300,000 | Nabors Industries, Inc., Sr. Unsecd. Note, 144A, 7.375%, 5/15/2027 | 290,061 | |
250,000 | Precision Drilling Corp., Sr. Unsecd. Note, 144A, 7.125%, 1/15/2026 | 248,480 | |
110,000 | USA Compression Partners LP, Sr. Unsecd. Note, Series WI, 6.875%, 4/1/2026 | 109,379 | |
TOTAL | 747,005 | ||
Packaging—2.4% | |||
225,000 | Ardagh Packaging Finance PLC/Ardagh Holdings, Sr. Unsecd. Note, 144A, 5.250%, 8/15/2027 | 165,198 | |
200,000 | Bway Holding Co., 144A, 7.875%, 8/15/2026 | 198,676 | |
150,000 | Sealed Air Corp., Sr. Unsecd. Note, 144A, 5.500%, 9/15/2025 | 148,875 | |
150,000 | Trivium Packaging Finance BV, Sr. Unsecd. Note, 144A, 8.500%, 8/15/2027 | 136,320 | |
TOTAL | 649,069 | ||
Paper—0.5% | |||
150,000 | Graphic Packaging International, LLC, Sr. Unsecd. Note, 144A, 4.750%, 7/15/2027 | 142,375 | |
Pharmaceuticals—0.5% | |||
225,000 | Bausch Health Cos, Inc., Sec. Fac. Bond, 144A, 6.125%, 2/1/2027 | 125,235 | |
Retailers—1.1% | |||
150,000 | Academy Ltd., Sec. Fac. Bond, 144A, 6.000%, 11/15/2027 | 146,365 | |
150,000 | William Carter Co., Sr. Unsecd. Note, 144A, 5.625%, 3/15/2027 | 145,465 | |
TOTAL | 291,830 |
3
Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Technology—5.4% | |||
$ 200,000 | AMS AG, Sr. Unsecd. Note, 144A, 7.000%, 7/31/2025 | $ 203,390 | |
250,000 | Boxer Parent Co., Inc., 144A, 7.125%, 10/2/2025 | 249,687 | |
75,000 | Coherent Corp., Sr. Unsecd. Note, 144A, 5.000%, 12/15/2029 | 67,877 | |
200,000 | Consensus Cloud Solutions, Inc., Sr. Unsecd. Note, 144A, 6.000%, 10/15/2026 | 189,052 | |
175,000 | Entegris, Inc., Sr. Unsecd. Note, 144A, 4.375%, 4/15/2028 | 163,298 | |
175,000 | Iron Mountain, Inc., Sr. Unsecd. Note, 144A, 4.875%, 9/15/2027 | 165,660 | |
100,000 | Logan Merger Sub, Inc., Sr. Secd. Note, 144A, 5.500%, 9/1/2027 | 58,982 | |
75,000 | NCR Atleos Escrow Corp., Sec. Fac. Bond, 144A, 9.500%, 4/1/2029 | 77,452 | |
200,000 | SS&C Technologies, Inc., Sr. Unsecd. Note, 144A, 5.500%, 9/30/2027 | 193,552 | |
100,000 | Veritas US, Inc./Veritas Bermuda, Ltd., Sr. Secd. Note, 144A, 7.500%, 9/1/2025 | 77,934 | |
TOTAL | 1,446,884 | ||
Transportation Services—2.4% | |||
400,000 | Stena International S.A., Sec. Fac. Bond, 144A, 6.125%, 2/1/2025 | 395,685 | |
250,000 | Watco Cos LLC/Finance Co, Sr. Unsecd. Note, 144A, 6.500%, 6/15/2027 | 241,040 | |
TOTAL | 636,725 | ||
Utility - Electric—0.6% | |||
150,000 | NRG Energy, Inc., Sr. Unsecd. Note, 6.625%, 1/15/2027 | 148,864 | |
TOTAL CORPORATE BONDS (IDENTIFIED COST $19,061,785) | 18,617,914 | ||
1 | FLOATING RATE LOANS—22.2% | ||
Airlines—0.8% | |||
200,000 | SkyMiles IP Ltd., 2020 Skymiles Term Loan B–1st Lien, 9.166% (SOFR CME +3.750%), 10/20/2027 | 204,176 | |
Automotive—0.4% | |||
100,000 | DexKo Global, Inc., 2023 Incremental Term Loan–1st Lien, 9.640% (SOFR CME +4.250%), 10/4/2028 | 98,250 | |
Building Materials—0.4% | |||
100,000 | Tecta America Corp., 2023 Term Loan B–1st Lien, 9.713% (SOFR CME +4.250%), 4/10/2028 | 99,953 | |
Chemicals—0.9% | |||
92,019 | Axalta Coating Systems U.S. Holdings, Inc., 2023 USD Term Loan B4–1st Lien, 7.890% (SOFR CME +2.500%), 12/20/2029 | 92,163 | |
149,625 | Koppers, Inc., First Lien Term Loan B–1st Lien, 8.930%–9.930% (SOFR CME +3.500%), 4/10/2030 | 149,999 | |
TOTAL | 242,162 | ||
Consumer Cyclical Services—1.1% | |||
200,000 | Allied Universal Holdco, LLC, 2023 Term Loan B–1st Lien, 10.098% (SOFR CME +4.750%), 5/12/2028 | 197,250 | |
99,750 | Belron Finance US, LLC, 2023 Term Loan–1st Lien, 8.245% (SOFR CME +2.750%), 4/18/2029 | 99,850 | |
TOTAL | 297,100 | ||
Consumer Products—0.5% | |||
148,129 | BCPE Empire Holdings, Inc., 2023 Extended Term Loan–1st Lien, 10.098% (SOFR CME +4.750%), 12/11/2028 | 148,111 | |
Diversified Manufacturing—0.3% | |||
83,486 | Emrld Borrower LP, Term Loan B–1st Lien, 8.348% (SOFR CME +3.000%), 5/31/2030 | 83,523 | |
Gaming—1.7% | |||
49,750 | Caesars Entertainment Corp., Term Loan B–1st Lien, 8.698% (SOFR CME +3.250%), 2/6/2030 | 49,736 | |
68,652 | Century Casinos, Inc., 2022 Term Loan–1st Lien, 11.420% (SOFR CME +6.000%), 4/2/2029 | 65,777 | |
246,875 | Great Canadian Gaming Corp., 2021 Term Loan–1st Lien, 9.658% (SOFR CME +4.000%), 11/1/2026 | 247,287 | |
100,000 | Ontario Gaming GTA LP, Term Loan B–1st Lien, 9.640% (SOFR CME +4.250%), 8/1/2030 | 100,188 | |
TOTAL | 462,988 | ||
Health Care—3.8% | |||
175,000 | 2 | Athenahealth Group, Inc., 2022 Term Loan B–1st Lien, TBD, 2/15/2029 | 171,598 |
121,887 | Curium BidCo S.a r.l., 2023 USD Term Loan B–1st Lien, 9.890% (SOFR CME +4.500%), 7/31/2029 | 121,582 | |
99,750 | Fortrea Holdings, Inc., Term Loan B–1st Lien, 9.098% (SOFR CME +3.750%), 7/1/2030 | 98,722 | |
150,000 | Grifols Worldwide Operations USA, Inc., USD 2019 Term Loan B–1st Lien, 7.448%–7.538% (SOFR CME +2.000%), 11/15/2027 | 148,083 | |
200,000 | Medline Borrower LP, USD Term Loan B–1st Lien, 8.463% (SOFR CME +3.000%), 10/23/2028 | 199,974 |
4
Principal Amount or Shares | Value | ||
1 | FLOATING RATE LOANS—continued | ||
Health Care—continued | |||
$ 150,000 | MH Sub I, LLC, 2021 2nd Lien Term Loan–2nd Lien, 11.593% (SOFR CME +6.250%), 2/23/2029 | $ 134,625 | |
149,243 | Parexel International Corp., 2021 1st Lien Term Loan–1st Lien, 8.593% (SOFR CME +3.250%), 11/15/2028 | 149,041 | |
TOTAL | 1,023,625 | ||
Industrial - Other—1.0% | |||
97,370 | Filtration Group Corp., 2021 Incremental Term Loan–1st Lien, 8.963% (SOFR CME +3.500%), 10/21/2028 | 97,181 | |
97,741 | Fluid-Flow Products, Inc., Term Loan–1st Lien, 9.402% (SOFR CME +3.750%), 3/31/2028 | 97,333 | |
87,141 | SPX Flow, Inc., 2022 Term Loan–1st Lien, 9.948% (SOFR CME +4.500%), 4/5/2029 | 86,875 | |
TOTAL | 281,389 | ||
Insurance - P&C—2.4% | |||
99,749 | Asurion, LLC, 2023 Term Loan B11–1st Lien, 9.698% (SOFR CME +4.250%), 8/19/2028 | 98,004 | |
99,250 | Hub International Ltd., 2022 Term Loan B–1st Lien, 9.369% (SOFR CME +4.000%), 11/10/2029 | 99,508 | |
100,000 | Jones DesLauriers Insurance Management, Inc., 2023 Term Loan B–1st Lien, 9.624% (SOFR CME +4.250%), 3/15/2030 | 100,125 | |
243,648 | Sedgwick Claims Management Services, Inc., 2023 Term Loan B–1st Lien, 9.098% (SOFR CME +3.750%), 2/24/2028 | 243,830 | |
99,000 | USI, Inc., 2022 Incremental Term Loan–1st Lien, 9.140% (SOFR CME +3.750%), 11/22/2029 | 98,897 | |
TOTAL | 640,364 | ||
Leisure—0.4% | |||
99,750 | Carnival Corp., 2023 Term Loan B–1st Lien, 8.321% (SOFR CME +3.000%), 8/8/2027 | 99,085 | |
Lodging—0.5% | |||
148,875 | Four Seasons Hotels Ltd., 2023 Term Loan B–1st Lien, 7.948% (SOFR CME +2.500%), 11/30/2029 | 149,043 | |
Media Entertainment—0.8% | |||
120,591 | Emerald Expositions Holding, Inc., 2017 Term Loan B–1st Lien, 10.448% (SOFR CME +5.000%), 5/22/2026 | 120,716 | |
98,750 | Univision Communications, Inc., 2022 First Lien Term Loan B–1st Lien, 9.640% (SOFR CME +4.250%), 6/24/2029 | 98,565 | |
TOTAL | 219,281 | ||
Oil Field Services—0.5% | |||
124,062 | ChampionX Corp., 2022 Term Loan B2–1st Lien, 8.202% (SOFR CME +2.750%), 6/7/2029 | 124,373 | |
Packaging—1.5% | |||
207,017 | Charter NEX US, Inc., 2021 Term Loan–1st Lien, 9.213% (SOFR CME +3.750%), 12/1/2027 | 206,069 | |
198,379 | Clydesdale Acquisition Holdings, Inc., Term Loan B–1st Lien, 9.623% (SOFR CME +4.175%), 4/13/2029 | 196,705 | |
TOTAL | 402,774 | ||
Technology—5.2% | |||
148,875 | Central Parent, Inc., 2023 Term Loan B–1st Lien, 9.406% (SOFR CME +4.000%), 7/6/2029 | 148,902 | |
147,966 | Digi International, Inc., Term Loan B–1st Lien, 10.463% (SOFR CME +5.000%), 11/1/2028 | 147,966 | |
97,108 | Gainwell Acquisition Corp., Term Loan B–1st Lien, 9.490% (SOFR CME +4.000%), 10/1/2027 | 93,466 | |
98,106 | Greeneden U.S. Holdings II, LLC, 2020 USD Term Loan B4–1st Lien, 9.463% (SOFR CME +4.000%), 12/1/2027 | 98,150 | |
125,000 | Marcel LUX IV S.a.r.l., 2023 USD Term Loan B–1st Lien, 9.830% (SOFR CME +4.500%), 11/7/2030 | 125,000 | |
150,000 | 2 | McAfee, LLC, 2022 USD Term Loan B–1st Lien, TBD, 3/1/2029 | 147,831 |
97,323 | Nexus Buyer, LLC, Term Loan B–1st Lien, 9.198% (SOFR CME +3.750%), 11/9/2026 | 96,153 | |
97,158 | Open Text Corp., 2023 Term Loan B–1st Lien, 8.198% (SOFR CME +2.750%), 1/31/2030 | 97,255 | |
100,000 | Quartz Acquireco, LLC, Term Loan B–1st Lien, 8.848% (SOFR CME +3.500%), 6/28/2030 | 100,000 | |
100,000 | Renaissance Holding Corp., 2023 Refi Term Loan–1st Lien, 10.098% (SOFR CME +4.750%), 4/5/2030 | 99,761 | |
100,000 | Ultimate Software Group, Inc. (The), 2021 2nd Lien Term Loan–2nd Lien, 10.764% (SOFR CME +5.250%), 5/3/2027 | 99,938 | |
147,199 | VS Buyer, LLC, Term Loan B–1st Lien, 8.698% (SOFR CME +3.250%), 2/28/2027 | 146,831 | |
TOTAL | 1,401,253 | ||
TOTAL FLOATING RATE LOANS (IDENTIFIED COST $5,919,685) | 5,977,450 | ||
ASSET-BACKED SECURITIES—2.0% | |||
Automotive—0.7% | |||
90,369 | Enterprise Fleet Financing LLC 2022-4, Class A2, 5.760%, 10/22/2029 | 90,147 | |
100,000 | Volkswagen Auto Lease Trust 2022-A, Class A3, 3.440%, 7/21/2025 | 98,960 | |
TOTAL | 189,107 |
5
Principal Amount or Shares | Value | ||
ASSET-BACKED SECURITIES—continued | |||
Finance Companies—1.3% | |||
$ 44,038 | DLLAD LLC 2023-1A, Class A2, 5.190%, 4/20/2026 | $ 43,796 | |
150,000 | Evergreen Credit Card Trust 2022-CRT2, Class B, 6.560%, 11/16/2026 | 149,939 | |
147,727 | MMAF Equipment Finance LLC 2022-B, Class A2, 5.570%, 9/9/2025 | 147,362 | |
TOTAL | 341,097 | ||
TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $532,070) | 530,204 | ||
INVESTMENT COMPANIES—6.1% | |||
51,943 | Bank Loan Core Fund | 452,423 | |
1,197,898 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 5.45%3 | 1,198,258 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $1,649,991) | 1,650,681 | ||
TOTAL INVESTMENT IN SECURITIES—99.5% (IDENTIFIED COST $27,163,531) | 26,776,249 | ||
OTHER ASSETS AND LIABILITIES - NET—0.5%4 | 127,796 | ||
TOTAL NET ASSETS—100% | $26,904,045 |
Transactions with affiliated investment companies, which are funds managed by the Adviser or an affiliate of the Adviser, during the period ended November 30, 2023, were as follows:
Bank Loan Core Fund | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | Total of Affiliated Transactions | |
Value as of 2/28/2023 | $406,871 | $2,575,116 | $2,981,987 |
Purchases at Cost | $250,000 | $8,667,190 | $8,917,190 |
Proceeds from Sales | $(200,000) | $(10,044,232) | $(10,244,232) |
Change in Unrealized Appreciation/Depreciation | $11,707 | $153 | $11,860 |
Net Realized Gain/(Loss) | $(16,155) | $31 | $(16,124) |
Value as of 11/30/2023 | $452,423 | $1,198,258 | $1,650,681 |
Shares Held as of 11/30/2023 | 51,943 | 1,197,898 | 1,249,841 |
Dividend Income | $42,070 | $74,584 | $116,654 |
1 | Floating/variable note with current rate and current maturity or next reset date shown. |
2 | All or a portion of the security represents unsettled loan commitments at November 30, 2023 where the rate will be determined at time of settlement. |
3 | 7-day net yield. |
4 | Assets, other than investments in securities, less liabilities. |
Note: The categories of investments are shown as a percentage of total net assets at November 30, 2023.
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
◾ Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by Federated Investment Management Company (the “Adviser”).
◾ Shares of mutual funds or non-exchange-traded investment companies are value based upon their reported NAVs, or NAV per share practical expedient, as applicable.
◾ Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations.
◾ Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser.
◾ For securities that are fair valued in accordance with procedures established by and under the general supervision of the Adviser, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.
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If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Adviser’s valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion of the Adviser’s valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different. The trading prices of the Fund’s shares listed on its exchange may differ from the Fund’s NAV and will normally be affected by market forces, such as supply and demand, economic conditions, the market value of the Fund’s disclosed portfolio holdings and other factors. As a result, trading prices may be lower, higher or the same as the Fund’s NAV; and investors may pay more than NAV when buying shares and receive less than NAV when selling shares through the exchange.
Fair Valuation and Significant Events Procedures
Pursuant to Rule 2a-5 under the Investment Company Act of 1940, the Fund’s Board of Trustees (the “Trustees”) has designated the Adviser as the Fund’s valuation designee to perform any fair value determinations for securities and other assets held by the Fund. The Adviser is subject to the Trustees’ oversight and certain reporting and other requirements intended to provide the Trustees the information needed to oversee the Adviser’s fair value determinations.
The Adviser, acting through its Valuation Committee, is responsible for determining the fair value of investments for which market quotations are not readily available. The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser’s affiliated companies and determines fair value and the calculation of the NAV. The Valuation Committee is also authorized to use of pricing services to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Adviser. The Trustees periodically review the fair valuations made by the Valuation Committee. The Trustees have also approved the Adviser’s fair valuation and significant events procedures as part of the Fund’s compliance program and will review any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and ask for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Adviser.
The Adviser has also adopted procedures requiring an investment to be priced at its fair value whenever the Valuation Committee determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
◾ With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;
◾ Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;
◾ Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
The Adviser has adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Valuation Committee will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Adviser. The Trustees periodically review fair valuations made in response to significant events.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
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The following is a summary of the inputs used, as of November 30, 2023, in valuing the Fund’s assets carried at fair value:
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
Corporate Bonds | $— | $18,617,914 | $— | $18,617,914 |
Floating Rate Loans | 148,083 | 5,829,367 | — | 5,977,450 |
Asset-Backed Securities | — | 530,204 | — | 530,204 |
Investment Companies | 1,650,681 | — | — | 1,650,681 |
TOTAL SECURITIES | $1,798,764 | $24,977,485 | $— | $26,776,249 |
The following acronym(s) are used throughout this portfolio: | ||
MTN | —Medium Term Note | |
PIK | —Payment in Kind | |
SOFR | —Secured Overnight Financing Rate | |
TBD | —To Be Determined |
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