United States Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSRS
Certified Shareholder Report of Registered Management Investment Companies
811-3352
(Investment Company Act File Number)
Federated Hermes Government Income Trust
(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: 2025-01-31
Date of Reporting Period: Six months ended 2024-07-31
Item 1. | Reports to Stockholders |
Federated Hermes Government Income Fund
Institutional Shares FICMX
Semi-Annual Shareholder Report - July 31, 2024
A Portfolio of Federated Hermes Government Income Trust
This semi-annual shareholder report contains important information about the Federated Hermes Government Income Fund (the "Fund") for the period of February 1, 2024 to July 31, 2024. You can find additional information at www.FederatedHermes.com/us/FundInformation. You can also request this information by contacting us at 1-800-341-7400, Option 4, or your financial advisor.
What were the Fund costs for the last six months?
(based on a hypothetical $10,000 investment)
Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
---|---|---|
Institutional Shares | $32 | 0.63% |
Key Fund Statistics
Net Assets | $167,041,609 |
Number of Investments | 98 |
Portfolio Turnover | 108% |
Portfolio Turnover (excluding purchases and sales from dollar-roll transactions) | 20% |
Fund Holdings
Top Security Types (% of Net Assets)
Value | Value |
---|---|
Cash Equivalents | 3.5% |
Collateralized Mortgage Obligations | 17.8% |
U.S. Government Agency Mortgage-Backed Securities | 98.7% |
Semi-Annual Shareholder Report
Federated Hermes Government Income Fund
Additional Information about the Fund
Additional information is available on the Fund’s website at www.FederatedHermes.com/us/FundInformation, including its:
• prospectus • financial information • holdings • proxy voting information
CUSIP 314199100
8082203-A (09/24)
Federated Securities Corp., Distributor
www.federatedhermes.com/us
© 2024 Federated Hermes, Inc.
Federated Hermes Government Income Fund
Service Shares FITSX
Semi-Annual Shareholder Report - July 31, 2024
A Portfolio of Federated Hermes Government Income Trust
This semi-annual shareholder report contains important information about the Federated Hermes Government Income Fund (the "Fund") for the period of February 1, 2024 to July 31, 2024. You can find additional information at www.FederatedHermes.com/us/FundInformation. You can also request this information by contacting us at 1-800-341-7400, Option 4, or your financial advisor.
What were the Fund costs for the last six months?
(based on a hypothetical $10,000 investment)
Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
---|---|---|
Service Shares | $42 | 0.83% |
Key Fund Statistics
Net Assets | $167,041,609 |
Number of Investments | 98 |
Portfolio Turnover | 108% |
Portfolio Turnover (excluding purchases and sales from dollar-roll transactions) | 20% |
Fund Holdings
Top Security Types (% of Net Assets)
Value | Value |
---|---|
Cash Equivalents | 3.5% |
Collateralized Mortgage Obligations | 17.8% |
U.S. Government Agency Mortgage-Backed Securities | 98.7% |
Semi-Annual Shareholder Report
Federated Hermes Government Income Fund
Additional Information about the Fund
Additional information is available on the Fund’s website at www.FederatedHermes.com/us/FundInformation, including its:
• prospectus • financial information • holdings • proxy voting information
CUSIP 314199209
8082203-B (09/24)
Federated Securities Corp., Distributor
www.federatedhermes.com/us
© 2024 Federated Hermes, Inc.
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 Financial Statements filed under Item 7 of this form.
(b) Not Applicable
Item 7. | Financial Statements and Financial Highlights for Open-End Management Companies |
and Additional Information
Share Class | Ticker | Institutional | FICMX | Service | FITSX |
Federated Hermes Government Income Fund
A Portfolio of Federated Hermes Government Income Trust
Principal Amount or Shares | Value | ||
1 | MORTGAGE-BACKED SECURITIES—98.7% | ||
Federal Home Loan Mortgage Corporation—27.9% | |||
$ 3,673,910 | 1.500%, 2/1/2052 | $ 2,819,635 | |
1,214,547 | 2.000%, 4/1/2036 | 1,098,301 | |
2,338,013 | 2.000%, 10/1/2036 | 2,098,896 | |
2,858,091 | 2.000%, 6/1/2050 | 2,321,496 | |
4,829,461 | 2.000%, 5/1/2051 | 3,907,656 | |
872,054 | 2.000%, 1/1/2052 | 714,052 | |
7,419,554 | 2.000%, 1/1/2052 | 6,003,375 | |
1,149,446 | 2.000%, 2/1/2052 | 926,099 | |
4,295,722 | 2.500%, 10/1/2051 | 3,638,223 | |
2,173,423 | 2.500%, 11/1/2051 | 1,858,421 | |
2,614,449 | 2.500%, 4/1/2052 | 2,232,259 | |
413,650 | 3.000%, 5/1/2046 | 371,340 | |
1,536,298 | 3.000%, 11/1/2051 | 1,360,916 | |
113,087 | 3.500%, 12/1/2047 | 104,269 | |
382,633 | 3.500%, 6/1/2052 | 351,930 | |
132,651 | 4.000%, 12/1/2047 | 126,198 | |
57,364 | 4.000%, 6/1/2049 | 54,412 | |
439,036 | 4.000%, 4/1/2052 | 416,855 | |
6,789,905 | 4.000%, 6/1/2052 | 6,389,572 | |
150,950 | 4.500%, 9/1/2039 | 149,548 | |
1,850,919 | 4.500%, 6/1/2052 | 1,807,282 | |
845,698 | 4.500%, 5/1/2053 | 821,201 | |
2,122,531 | 5.000%, 10/1/2052 | 2,090,551 | |
2,318,998 | 5.500%, 5/1/2053 | 2,325,505 | |
2,440,516 | 6.500%, 1/1/2054 | 2,515,077 | |
3 | 7.000%, 9/1/2030 | 3 | |
TOTAL | 46,503,072 | ||
Federal National Mortgage Association—38.5% | |||
3,637,377 | 2.000%, 7/1/2050 | 2,954,474 | |
9,427,187 | 2.000%, 9/1/2050 | 7,657,270 | |
4,211,039 | 2.000%, 11/1/2050 | 3,413,853 | |
2,529,256 | 2.000%, 5/1/2051 | 2,050,446 | |
6,574,810 | 2.000%, 2/1/2052 | 5,344,524 | |
4,583,842 | 2.500%, 10/1/2050 | 3,898,001 | |
2,038,585 | 2.500%, 1/1/2052 | 1,726,562 | |
2,849,404 | 2.500%, 1/1/2052 | 2,410,606 | |
1,622,595 | 2.500%, 2/1/2052 | 1,375,509 | |
762,673 | 2.500%, 2/1/2052 | 653,089 | |
865,559 | 2.500%, 5/1/2052 | 733,889 | |
6,668,383 | 3.000%, 10/1/2046 | 5,967,558 | |
2,665,863 | 3.000%, 9/1/2047 | 2,387,356 | |
1,937,205 | 3.000%, 2/1/2048 | 1,733,612 | |
998,292 | 3.000%, 6/1/2052 | 882,456 | |
2,485,092 | 3.500%, 12/1/2041 | 2,334,030 | |
1,368,442 | 3.500%, 9/1/2042 | 1,285,214 | |
160,160 | 3.500%, 12/1/2047 | 147,772 | |
2,713,870 | 3.500%, 5/1/2049 | 2,510,735 |
Principal Amount or Shares | Value | ||
1 | MORTGAGE-BACKED SECURITIES—continued | ||
Federal National Mortgage Association—continued | |||
$ 2,464,068 | 3.500%, 9/1/2049 | $ 2,286,561 | |
2,152,243 | 3.500%, 12/1/2049 | 1,984,420 | |
1,455,709 | 3.500%, 11/1/2050 | 1,344,929 | |
2,040,545 | 4.000%, 12/1/2042 | 1,967,850 | |
127,225 | 4.000%, 9/1/2048 | 120,837 | |
1,612,312 | 4.000%, 5/1/2053 | 1,521,155 | |
32,787 | 4.500%, 10/1/2040 | 32,476 | |
109,205 | 4.500%, 4/1/2041 | 108,172 | |
888,469 | 4.500%, 2/1/2053 | 857,249 | |
1,892,268 | 4.500%, 3/1/2053 | 1,824,594 | |
2,902,972 | 5.000%, 9/1/2053 | 2,860,503 | |
TOTAL | 64,375,702 | ||
Government National Mortgage Association—12.0% | |||
11,321,669 | 2.500%, 6/20/2051 | 9,655,358 | |
2,952,951 | 3.000%, 9/20/2050 | 2,655,887 | |
410,561 | 5.000%, 8/20/2053 | 405,906 | |
1,076,989 | 5.500%, 8/20/2053 | 1,080,489 | |
1,921,795 | 5.500%, 9/20/2053 | 1,928,640 | |
4,274,676 | 6.000%, 10/20/2053 | 4,325,984 | |
2,873 | 7.000%, 1/15/2028 | 2,909 | |
495 | 7.000%, 3/15/2028 | 500 | |
3,160 | 7.000%, 10/15/2028 | 3,213 | |
879 | 7.500%, 7/15/2029 | 896 | |
506 | 7.500%, 8/15/2029 | 516 | |
11,971 | 7.500%, 1/15/2031 | 12,459 | |
12,387 | 8.500%, 6/15/2030 | 12,878 | |
TOTAL | 20,085,635 | ||
2 | Uniform Mortgage-Backed Securities, TBA—20.3% | ||
5,250,000 | 1.500%, 8/1/2039 | 4,588,407 | |
5,300,000 | 2.000%, 8/1/2039 | 4,755,510 | |
3,300,000 | 2.500%, 8/1/2039 | 3,035,229 | |
1,250,000 | 2.500%, 8/1/2054 | 1,048,535 | |
4,000,000 | 3.000%, 8/1/2054 | 3,492,344 | |
2,500,000 | 3.500%, 8/20/2054 | 2,300,459 | |
1,500,000 | 4.000%, 8/20/2054 | 1,417,150 | |
3,525,000 | 4.500%, 8/20/2054 | 3,413,838 | |
3,250,000 | 5.000%, 8/20/2054 | 3,213,241 | |
2,500,000 | 5.500%, 8/1/2054 | 2,504,297 | |
2,750,000 | 6.000%, 8/1/2054 | 2,789,638 | |
1,350,000 | 6.500%, 8/20/2054 | 1,375,770 | |
TOTAL | 33,934,418 | ||
TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $175,818,208) | 164,898,827 | ||
COLLATERALIZED MORTGAGE OBLIGATIONS—17.8% | |||
3 | Federal Home Loan Mortgage Corporation—9.2% | ||
74,452 | Federal Home Loan Mortgage Corp. REMIC, Series 3331, Class FC, 5.881% (30-DAY AVERAGE SOFR +0.544%), 6/15/2037 | 73,663 | |
4,796,902 | Federal Home Loan Mortgage Corp. REMIC, Series 5396, Class DF, 6.500% (30-DAY AVERAGE SOFR +1.250%), 4/25/2054 | 4,780,560 | |
1,918,761 | Federal Home Loan Mortgage Corp. REMIC, Series 5396, Class JF, 6.500% (30-DAY AVERAGE SOFR +1.200%), 4/25/2054 | 1,912,812 | |
4,819,387 | Federal Home Loan Mortgage Corp. REMIC, Series 5400, Class FA, 6.068% (30-DAY AVERAGE SOFR +0.000%), 4/25/2054 | 4,716,629 |
Principal Amount or Shares | Value | ||
COLLATERALIZED MORTGAGE OBLIGATIONS—continued | |||
3 | Federal Home Loan Mortgage Corporation—continued | ||
$ 3,836,258 | Federal Home Loan Mortgage Corp. REMIC, Series 5409, Class JF, 6.500% (30-DAY AVERAGE SOFR +1.450%), 5/25/2054 | $ 3,844,583 | |
TOTAL | 15,328,247 | ||
3 | Federal National Mortgage Association—5.9% | ||
541,390 | Federal National Mortgage Association REMIC, Series 2019-41, Class F, 5.961% (30-DAY AVERAGE SOFR +0.614%), 8/25/2059 | 533,165 | |
4,764,988 | Federal National Mortgage Association REMIC, Series 2024-15, Class FA, 6.500% (30-DAY AVERAGE SOFR +0.000%), 4/25/2054 | 4,727,939 | |
4,764,988 | Federal National Mortgage Association REMIC, Series 2024-15, Class FB, 6.121% (30-DAY AVERAGE SOFR +0.000%), 4/25/2054 | 4,655,948 | |
TOTAL | 9,917,052 | ||
Government National Mortgage Association—2.7% | |||
426,941 | Government National Mortgage Association REMIC, Series 2015-47, Class AE, 2.900%, 11/16/2055 | 401,739 | |
4,141,330 | 3 | Government National Mortgage Association REMIC, Series 2024-59, Class FJ, 6.500% (30-DAY AVERAGE SOFR +1.250%), 4/20/2054 | 4,147,615 |
TOTAL | 4,549,354 | ||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $29,969,428) | 29,794,653 | ||
INVESTMENT COMPANY—3.5% | |||
5,744,803 | Federated Hermes Government Obligations Fund, Premier Shares, 5.24%4 (IDENTIFIED COST $5,744,803) | 5,744,803 | |
TOTAL INVESTMENT IN SECURITIES—120.0% (IDENTIFIED COST $211,532,439)5 | 200,438,283 | ||
OTHER ASSETS AND LIABILITIES - NET—(20.0)%6 | (33,396,674) | ||
TOTAL NET ASSETS—100% | $167,041,609 |
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized Appreciation (Depreciation) |
Long Futures: | ||||
United States Treasury Notes 2-Year Long Futures | 100 | $20,536,719 | September 2024 | $166,718 |
United States Treasury Notes 5-Year Long Futures | 107 | $11,544,297 | September 2024 | $119,458 |
United States Treasury Notes 10-Year Long Futures | 15 | $1,677,187 | September 2024 | $7,669 |
Short Futures: | ||||
United States Treasury Long Bond Short Futures | 24 | $2,898,750 | September 2024 | $(89,573) |
United States Treasury Notes 10-Year Ultra Short Futures | 27 | $3,120,609 | September 2024 | $(84,266) |
United States Treasury Ultra Bond Short Futures | 26 | $3,327,188 | September 2024 | $(83,028) |
NET UNREALIZED APPRECIATION ON FUTURES CONTRACTS | $36,978 |
Federated Hermes Government Obligations Fund, Premier Shares | |
Value as of 1/31/2024 | $1,612,981 |
Purchases at Cost | $111,548,233 |
Proceeds from Sales | $(107,416,411) |
Change in Unrealized Appreciation/Depreciation | $— |
Net Realized Gain/(Loss) | $— |
Value as of 7/31/2024 | $5,744,803 |
Shares Held as of 7/31/2024 | 5,744,803 |
Dividend Income | $159,885 |
1 | Due to monthly principal payments, the average lives of the Federal Home Loan Mortgage Corporation, Federal National Mortgage Association and Government National Mortgage Association securities approximates one to ten years. |
2 | All or a portion of these To Be Announced Securities (TBAs) are subject to dollar-roll transactions. |
3 | Floating/variable note with current rate and current maturity or next reset date shown. |
4 | 7-day net yield. |
5 | The cost of investments for federal tax purposes amounts to $211,334,364. |
6 | Assets, other than investments in securities, less liabilities. A significant portion of this balance is a result of dollar-roll transactions as of July 31, 2024. See Statement of Assets and Liabilities. |
The following is a summary of the inputs used, as of July 31, 2024, 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: | ||||
Mortgage-Backed Securities | $— | $164,898,827 | $— | $164,898,827 |
Collateralized Mortgage Obligations | — | 29,794,653 | — | 29,794,653 |
Investment Company | 5,744,803 | — | — | 5,744,803 |
TOTAL SECURITIES | $5,744,803 | $194,693,480 | $— | $200,438,283 |
Other Financial Instruments:1 | ||||
Assets | $293,845 | $— | $— | $293,845 |
Liabilities | (256,867) | — | — | (256,867) |
TOTAL OTHER FINANCIAL INSTRUMENTS | $36,978 | $— | $— | $36,978 |
1 | Other financial instruments are futures contracts. |
The following acronym(s) are used throughout this portfolio: | ||
REMIC | —Real Estate Mortgage Investment Conduit | |
SOFR | —Secured Overnight Financing Rate |
Six Months Ended (unaudited) 7/31/2024 | Year Ended January 31, | |||||
2024 | 2023 | 2022 | 2021 | 2020 | ||
Net Asset Value, Beginning of Period | $8.97 | $9.20 | $10.15 | $10.56 | $10.31 | $9.97 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.16 | 0.24 | 0.18 | 0.02 | 0.09 | 0.21 |
Net realized and unrealized gain (loss) | (0.04) | (0.22) | (0.94) | (0.34) | 0.29 | 0.35 |
Total From Investment Operations | 0.12 | 0.02 | (0.76) | (0.32) | 0.38 | 0.56 |
Less Distributions: | ||||||
Distributions from net investment income | (0.15) | (0.25) | (0.19) | (0.07) | (0.13) | (0.22) |
Distributions from net realized gain | — | — | — | (0.02) | — | — |
Total Distributions | (0.15) | (0.25) | (0.19) | (0.09) | (0.13) | (0.22) |
Net Asset Value, End of Period | $8.94 | $8.97 | $9.20 | $10.15 | $10.56 | $10.31 |
Total Return2 | 1.41% | 0.24% | (7.52)% | (3.07)% | 3.73% | 5.69% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 0.63%4 | 0.63% | 0.63% | 0.63% | 0.63% | 0.63% |
Net investment income | 3.62%4 | 2.76% | 1.94% | 0.29% | 0.86% | 2.09% |
Expense waiver/reimbursement5 | 0.13%4 | 0.29% | 0.23% | 0.16% | 0.13% | 0.12% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $88,532 | $94,815 | $117,673 | $163,080 | $235,598 | $240,047 |
Portfolio turnover6 | 108% | 18% | 130% | 227% | 336% | 302% |
Portfolio turnover (excluding purchases and sales from dollar-roll transactions)6 | 20% | 7% | 79% | 21% | 85% | 49% |
1 | Per share numbers have been calculated using the average shares method. |
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. |
Six Months Ended (unaudited) 7/31/2024 | Year Ended January 31, | |||||
2024 | 2023 | 2022 | 2021 | 2020 | ||
Net Asset Value, Beginning of Period | $8.96 | $9.20 | $10.15 | $10.56 | $10.31 | $9.97 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.15 | 0.23 | 0.16 | 0.01 | 0.14 | 0.19 |
Net realized and unrealized gain (loss) | (0.02) | (0.24) | (0.94) | (0.35) | 0.22 | 0.35 |
Total From Investment Operations | 0.13 | (0.01) | (0.78) | (0.34) | 0.36 | 0.54 |
Less Distributions: | ||||||
Distributions from net investment income | (0.14) | (0.23) | (0.17) | (0.05) | (0.11) | (0.20) |
Distributions from net realized gain | — | — | — | (0.02) | — | — |
Total Distributions | (0.14) | (0.23) | (0.17) | (0.07) | (0.11) | (0.20) |
Net Asset Value, End of Period | $8.95 | $8.96 | $9.20 | $10.15 | $10.56 | $10.31 |
Total Return2 | 1.54% | (0.07)% | (7.70)% | (3.25)% | 3.52% | 5.48% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 0.83%4 | 0.83% | 0.83% | 0.83% | 0.83% | 0.83% |
Net investment income | 3.55%4 | 2.56% | 1.73% | 0.10% | 1.36% | 1.91% |
Expense waiver/reimbursement5 | 0.16%4 | 0.24% | 0.17% | 0.12% | 0.10% | 0.09% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $78,509 | $8,309 | $10,907 | $15,249 | $16,292 | $17,083 |
Portfolio turnover6 | 108% | 18% | 130% | 227% | 336% | 302% |
Portfolio turnover (excluding purchases and sales from dollar-roll transactions)6 | 20% | 7% | 79% | 21% | 85% | 49% |
1 | Per share numbers have been calculated using the average shares method. |
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. |
Assets: | |
Investment in securities, at value including $5,744,803 of investments in affiliated holdings* (identified cost $211,532,439, including $5,744,803 of identified cost in affiliated holdings) | $200,438,283 |
Cash | 3,393 |
Due from broker (Note 2) | 194,585 |
Income receivable | 489,257 |
Receivable for investments sold | 866,518 |
Receivable for shares sold | 13,442 |
Total Assets | 202,005,478 |
Liabilities: | |
Payable for investments purchased | 34,549,926 |
Payable for shares redeemed | 203,687 |
Payable for variation margin on futures contracts | 17,168 |
Income distribution payable | 114,227 |
Payable for investment adviser fee (Note 5) | 2,494 |
Payable for administrative fee (Note 5) | 351 |
Payable for other service fees (Notes 2 and 5) | 26,639 |
Accrued expenses (Note 5) | 49,377 |
Total Liabilities | 34,963,869 |
Net assets for 18,675,119 shares outstanding | $167,041,609 |
Net Assets Consist of: | |
Paid-in capital | $196,556,943 |
Total distributable earnings (loss) | (29,515,334) |
Total Net Assets | $167,041,609 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Institutional Shares: | |
Net asset value per share ($88,532,197 ÷ 9,898,446 shares outstanding), no par value, unlimited shares authorized | $8.94 |
Service Shares: | |
Net asset value per share ($78,509,412 ÷ 8,776,673 shares outstanding), no par value, unlimited shares authorized | $8.95 |
* | See information listed after the Fund’s Portfolio of Investments. |
Investment Income: | |
Interest | $3,261,966 |
Dividends received from affiliated holdings* | 159,885 |
TOTAL INCOME | 3,421,851 |
Expenses: | |
Investment adviser fee (Note 5) | 317,660 |
Administrative fee (Note 5) | 62,357 |
Custodian fees | 11,980 |
Transfer agent fees | 86,014 |
Directors’/Trustees’ fees (Note 5) | 2,878 |
Auditing fees | 16,634 |
Legal fees | 5,041 |
Portfolio accounting fees | 57,197 |
Other service fees (Notes 2 and 5) | 82,938 |
Share registration costs | 20,818 |
Printing and postage | 10,979 |
Miscellaneous (Note 5) | 13,729 |
TOTAL EXPENSES | 688,225 |
Waiver and Reimbursements: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (101,070) |
Reimbursement of other operating expenses (Notes 2 and 5) | (14,573) |
TOTAL WAIVER AND REIMBURSEMENTS | (115,643) |
Net expenses | 572,582 |
Net investment income | 2,849,269 |
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts: | |
Net realized loss on investments | (1,202,669) |
Net realized loss on futures contracts | (286,887) |
Net change in unrealized depreciation of investments | 2,288,245 |
Net change in unrealized depreciation of futures contracts | 254,313 |
Net realized and unrealized gain (loss) on investments and futures contracts | 1,053,002 |
Change in net assets resulting from operations | $3,902,271 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 7/31/2024 | Year Ended 1/31/2024 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $2,849,269 | $3,126,943 |
Net realized gain (loss) | (1,489,556) | (2,063,952) |
Net change in unrealized appreciation/depreciation | 2,542,558 | (1,583,698) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 3,902,271 | (520,707) |
Distributions to Shareholders: | ||
Institutional Shares | (1,575,451) | (2,917,684) |
Service Shares | (1,151,156) | (222,240) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (2,726,607) | (3,139,924) |
Share Transactions: | ||
Proceeds from sale of shares | 2,159,279 | 5,217,161 |
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Hermes Government Income Securities, Inc. | 78,251,314 | — |
Net asset value of shares issued to shareholders in payment of distributions declared | 2,082,023 | 2,431,254 |
Cost of shares redeemed | (19,751,028) | (29,443,058) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 62,741,588 | (21,794,643) |
Change in net assets | 63,917,252 | (25,455,274) |
Net Assets: | ||
Beginning of period | 103,124,357 | 128,579,631 |
End of period | $167,041,609 | $103,124,357 |
Shares of the Fund Issued | Acquired Fund’s Net Assets Received | Unrealized Depreciation1 | Net Assets of the Fund Immediately Prior to Acquisition | Net Assets of the Fund Immediately After Acquisition |
8,943,007 | $78,251,314 | $(1,442,685) | $99,729,204 | $177,980,518 |
1 | Unrealized Depreciation is included in the Net Assets Received amount shown above. |
Net investment income | $3,113,473 |
Net realized and unrealized gain (loss) on investments | (486,350) |
Net increase in net assets resulting from operations | $2,627,123 |
Other Service Fees Incurred | Other Service Fees Reimbursed | |
Service Shares | $82,938 | $(14,573) |
Fair Value of Derivative Instruments | ||
Liabilities | ||
Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||
Interest rate contracts | Payable for variation margin on futures contracts | $(36,978)* |
* | Includes cumulative appreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |
Futures Contracts | |
Interest rate contracts | $(286,887) |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |
Futures Contracts | |
Interest rate contracts | $254,313 |
Six Months Ended 7/31/2024 | Year Ended 1/31/2024 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 177,652 | $1,558,522 | 528,681 | $4,628,864 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | 663,763 | 5,807,925 | — | — |
Shares issued to shareholders in payment of distributions declared | 138,015 | 1,204,514 | 250,407 | 2,210,538 |
Shares redeemed | (1,656,944) | (14,510,024) | (2,987,472) | (26,316,946) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (677,514) | $(5,939,063) | (2,208,384) | $(19,477,544) |
Six Months Ended 7/31/2024 | Year Ended 1/31/2024 | |||
Service Shares: | Shares | Amount | Shares | Amount |
Shares sold | 68,702 | $600,757 | 66,480 | $588,297 |
Proceeds from shares issued in connection with the tax-free transfer of assets from the Acquired Fund | 8,279,244 | 72,443,389 | — | — |
Shares issued to shareholders in payment of distributions declared | 100,561 | 877,509 | 25,013 | 220,716 |
Shares redeemed | (598,893) | (5,241,004) | (349,625) | (3,126,112) |
NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS | 7,849,614 | $68,680,651 | (258,132) | $(2,317,099) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 7,172,100 | $62,741,588 | (2,466,516) | $(21,794,643) |
Short-Term | Long-Term | Total |
$8,979,606 | $8,356,669 | $17,336,275 |
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 |
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 314199209
Item 8. | Changes in and Disagreements with Accountants for Open-End Management Investment Companies |
Federated Hermes Government Income Fund: Not Applicable.
Item 9. | Proxy Disclosures for Open-End Management Investment Companies. |
Federated Hermes Government Income Fund: Not Applicable.
Item 10. | Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. |
Federated Hermes Government Income Fund: The Fund’s disclosure of remuneration items is included as part of the Financial Statements filed under Item 7 of this form.
Item 11. | Statement Regarding Basis for Approval of Investment Advisory Contract. |
Federated Hermes Government Income Fund: The Fund’s Evaluation and Approval of Advisory Contract summary by fund appear in the Financial Statements filed under Item 7 of this form.
Item 12. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
Item 13. | Portfolio Managers of Closed-End Management Investment Companies. |
Not Applicable
Item 14. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not Applicable
Item 15. | Submission of Matters to a Vote of Security Holders. |
No Changes to Report
Item 16. | Controls and Procedures. |
(a) The registrant’s Principal Executive Officer and Principal Financial Officer 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 as of a date within 90 days 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 17. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not Applicable
Item 18. | Recovery of Erroneously Awarded Compensation |
(a) Not Applicable
(b) Not Applicable
Item 19. | Exhibits |
(a)(1) Not Applicable.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(a)(4) 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 Government Income Trust
By: /s/ Jeremy D. Boughton
Jeremy D. Boughton, Principal Financial Officer
Date: September 23, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ J. Christopher Donahue
J. Christopher Donahue, Principal Executive Officer
Date: September 23, 2024
By: /s/ Jeremy D. Boughton
Jeremy D. Boughton, Principal Financial Officer
Date: September 23, 2024