United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-4018
(Investment Company Act File Number)
Federated High Yield Trust
______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
Peter J. Germain, Esquire
Federated Investors Tower
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:09/30/19
Date of Reporting Period:Six months ended 03/31/19
Item 1. | Reports to Stockholders |
Share Class | Ticker | A | FEKAX | Institutional | FEKIX |
Donahue
Sector Composition | Percentage of Total Net Assets |
Materials | 23.3% |
Consumer Discretionary | 16.8% |
Information Technology | 16.6% |
Communication Services | 12.0% |
Energy | 11.0% |
Health Care | 6.7% |
Real Estate | 3.3% |
Utilities | 3.2% |
Industrials | 3.0% |
Consumer Staples | 2.4% |
Cash Equivalents2 | 2.8% |
Other Assets and Liabilities—Net3 | (1.1)% |
TOTAL | 100.0% |
1 | Except for Cash Equivalents and Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
2 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. |
3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares | Value | ||
COMMON STOCKS—98.3% | |||
COMMUNICATION SERVICES—12.0% | |||
Media—12.0% | |||
2,925 | 1 | Altice USA, Inc. | $62,829 |
4,725 | Emerald Expositions Events, Inc. | 60,008 | |
8,205 | Entercom Communication Corp. | 43,076 | |
965 | Sinclair Broadcast Group, Inc. | 37,133 | |
26,340 | 1 | Urban One, Inc. | 52,680 |
TOTAL COMMUNICATION SERVICES | 255,726 | ||
CONSUMER DISCRETIONARY—16.8% | |||
Auto Components—7.4% | |||
3,690 | 1 | American Axle & Manufacturing Holdings, Inc. | 52,804 |
3,440 | Goodyear Tire & Rubber Co. | 62,436 | |
315 | Lear Corp. | 42,748 | |
TOTAL | 157,988 | ||
Hotels Restaurants & Leisure—5.6% | |||
2,055 | Aramark | 60,725 | |
3,340 | 1 | Stars Group, Inc./The | 58,484 |
TOTAL | 119,209 | ||
Specialty Retail—1.9% | |||
5,190 | 1 | Party City Holdco, Inc. | 41,209 |
Textiles Apparel & Luxury Goods—1.9% | |||
2,230 | Hanesbrands, Inc. | 39,872 | |
TOTAL CONSUMER DISCRETIONARY | 358,278 | ||
CONSUMER STAPLES—2.4% | |||
Food Products—2.4% | |||
2,135 | B&G Foods, Inc., Class A | 52,137 | |
ENERGY—11.0% | |||
Oil Gas & Consumable Fuels—11.0% | |||
2,145 | Enviva Partners LP/Enviva Partners Finance Corp. | 69,176 | |
3,045 | 1 | Jagged Peak Energy, Inc. | 31,881 |
1,840 | 1 | Parsley Energy, Inc. | 35,512 |
2,080 | Sunoco LP | 64,813 | |
2,515 | 1 | WPX Energy, Inc. | 32,972 |
TOTAL ENERGY | 234,354 |
Shares | Value | ||
COMMON STOCKS—continued | |||
HEALTH CARE—6.7% | |||
Health Care Providers & Services—2.3% | |||
1,805 | 1 | MEDNAX, Inc. | $49,042 |
Health Care Technology—1.3% | |||
2,235 | 1 | Inovalon Holdings, Inc. | 27,781 |
Pharmaceuticals—3.1% | |||
640 | 1 | Mallinckrodt PLC | 13,913 |
1,735 | 1 | Prestige Consumer Healthcare, Inc. | 51,894 |
TOTAL | 65,807 | ||
TOTAL HEALTH CARE | 142,630 | ||
INDUSTRIALS—3.0% | |||
Machinery—3.0% | |||
2,040 | Altra Holdings, Inc. | 63,342 | |
INFORMATION TECHNOLOGY—16.6% | |||
Communications Equipment—2.9% | |||
1,100 | 1 | Lumentum Holdings, Inc. | 62,194 |
Electronic Equipment Instruments & Components—8.0% | |||
1,050 | 1 | Anixter International, Inc. | 58,915 |
643 | CDW Corp. | 61,966 | |
4,235 | 1 | TTM Technologies, Inc. | 49,677 |
TOTAL | 170,558 | ||
Technology Hardware Storage & Peripherals—5.7% | |||
1,015 | 1 | Dell Technologies, Inc. | 59,571 |
2,263 | 1 | NCR Corp. | 61,757 |
TOTAL | 121,328 | ||
TOTAL INFORMATION TECHNOLOGY | 354,080 | ||
MATERIALS—23.3% | |||
Chemicals—5.0% | |||
2,280 | 1 | Axalta Coating Systems Ltd. | 57,479 |
1,920 | 1 | Koppers Holdings, Inc. | 49,881 |
TOTAL | 107,360 | ||
Containers & Packaging—15.5% | |||
5,320 | Ardagh Group SA | 69,160 | |
1,250 | 1 | Crown Holdings, Inc. | 68,213 |
5,562 | Graphic Packaging Holding Co. | 70,248 | |
3,327 | Owens-Illinois, Inc. | 63,146 | |
1,559 | WestRock Co. | 59,788 | |
TOTAL | 330,555 |
Shares | Value | ||
COMMON STOCKS—continued | |||
MATERIALS—continued | |||
Metals & Mining—2.8% | |||
2,595 | Teck Resources Ltd. | $60,152 | |
TOTAL MATERIALS | 498,067 | ||
REAL ESTATE—3.3% | |||
Equity Real Estate Investment Trusts (REITs)—3.3% | |||
1,805 | Gaming and Leisure Properties, Inc. | 69,619 | |
UTILITIES—3.2% | |||
Gas Utilities—3.2% | |||
3,102 | Suburban Propane Partners LP | 69,516 | |
TOTAL COMMON STOCKS (IDENTIFIED COST $2,117,927) | 2,097,749 | ||
INVESTMENT COMPANY—2.8% | |||
60,939 | Federated Institutional Prime Value Obligations Fund, Institutional Shares, 2.55%2 (IDENTIFIED COST $60,953) | 60,951 | |
TOTAL INVESTMENT IN SECURITIES—101.1% (IDENTIFIED COST $2,178,880)3 | 2,158,700 | ||
OTHER ASSETS AND LIABILITIES - NET—(1.1)%4 | (24,202) | ||
TOTAL NET ASSETS—100% | $2,134,498 |
Federated Institutional Prime Value Obligations Fund, Institutional Shares | |
Balance of Shares Held 9/30/2018 | 16,915 |
Purchases/Additions | 281,135 |
Sales/Reductions | (237,111) |
Balance of Shares Held 3/31/2019 | 60,939 |
Value | $60,951 |
Change in Unrealized Appreciation/Depreciation | $(2) |
Net Realized Gain/(Loss) | $(1) |
Dividend Income | $289 |
1 | Non-income-producing security. |
2 | 7-day net yield. |
3 | Also represents cost for federal tax purposes. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Six Months Ended (unaudited) 3/31/2019 | Year Ended September 30, | Period Ended 9/30/20161 | ||
2018 | 2017 | |||
Net Asset Value, Beginning of Period | $13.76 | $13.61 | $12.40 | $10.00 |
Income From Investment Operations: | ||||
Net investment income (loss)2 | 0.07 | 0.08 | (0.01) | (0.03) |
Net realized and unrealized gain (loss) | (1.69) | 0.42 | 1.88 | 2.43 |
TOTAL FROM INVESTMENT OPERATIONS | (1.62) | 0.50 | 1.87 | 2.40 |
Less Distributions: | ||||
Distributions from net investment income | (0.11) | — | — | — |
Distributions from net realized gain | (2.81) | (0.35) | (0.66) | — |
TOTAL DISTRIBUTIONS | (2.92) | (0.35) | (0.66) | — |
Net Asset Value, End of Period | $9.22 | $13.76 | $13.61 | $12.40 |
Total Return3 | (8.16)% | 3.63% | 15.60% | 24.00% |
Ratios to Average Net Assets: | ||||
Net expenses | 1.22%4 | 1.22% | 1.23% | 1.23%4 |
Net investment income (loss) | 1.26%4 | 0.55% | (0.04)% | (0.46)%4 |
Expense waiver/reimbursement5 | 8.17%4 | 5.52% | 5.72% | 7.47%4 |
Supplemental Data: | ||||
Net assets, end of period (000 omitted) | $432 | $604 | $639 | $360 |
Portfolio turnover | 30% | 69% | 82% | 151% |
1 | Reflects operations for the period from February 26, 2016 (date of initial investment) to September 30, 2016. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized. |
4 | Computed on an annualized basis. |
5 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. |
Six Months Ended (unaudited) 3/31/2019 | Year Ended September 30, | Period Ended 9/30/20161 | ||
2018 | 2017 | |||
Net Asset Value, Beginning of Period | $13.84 | $13.65 | $12.40 | $10.00 |
Income From Investment Operations: | ||||
Net investment income (loss)2 | 0.08 | 0.13 | 0.02 | 0.02 |
Net realized and unrealized gain (loss) | (1.71) | 0.41 | 1.89 | 2.38 |
TOTAL FROM INVESTMENT OPERATIONS | (1.63) | 0.54 | 1.91 | 2.40 |
Less Distributions: | ||||
Distributions from net investment income | (0.15) | — | — | — |
Distributions from net realized gain | (2.81) | (0.35) | (0.66) | — |
TOTAL DISTRIBUTIONS | (2.96) | (0.35) | (0.66) | — |
Net Asset Value, End of Period | $9.25 | $13.84 | $13.65 | $12.40 |
Total Return3 | (8.10)% | 3.92% | 15.94% | 24.00% |
Ratios to Average Net Assets: | ||||
Net expenses | 0.97%4 | 0.97% | 0.98% | 0.98%4 |
Net investment income | 1.53%4 | 0.70% | 0.15% | 0.23%4 |
Expense waiver/reimbursement5 | 8.22%4 | 5.40% | 5.79% | 10.64%4 |
Supplemental Data: | ||||
Net assets, end of period (000 omitted) | $1,702 | $2,055 | $2,619 | $1,606 |
Portfolio turnover | 30% | 69% | 82% | 151% |
1 | Reflects operations for the period from February 26, 2016 (date of initial investment) to September 30, 2016. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
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. |
Assets: | ||
Investment in securities, at value including $60,951 of investment in an affiliated holding (identified cost $2,178,880) | $2,158,700 | |
Income receivable | 1,686 | |
Income receivable from an affiliated holding | 247 | |
Receivable for investments sold | 17,353 | |
Receivable for shares sold | 375 | |
Prepaid expenses | 6,082 | |
TOTAL ASSETS | 2,184,443 | |
Liabilities: | ||
Payable for investments purchased | $32,348 | |
Bank overdraft | 26 | |
Payable to adviser (Note 5) | 1,063 | |
Payable for administrative fees (Note 5) | 14 | |
Payable for Directors'/Trustees' fees (Note 5) | 259 | |
Payable for auditing fees | 16,072 | |
Payable for other service fees (Notes 2 and 5) | 163 | |
TOTAL LIABILITIES | 49,945 | |
Net assets for 230,927 shares outstanding | $2,134,498 | |
Net Assets Consist of: | ||
Paid-in capital | $2,258,743 | |
Total distributable earnings (loss) | (124,245) | |
TOTAL NET ASSETS | $2,134,498 | |
Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
Class A Shares: | ||
Net asset value per share ($432,245 ÷ 46,889 shares outstanding), no par value, unlimited shares authorized | $9.22 | |
Offering price per share (100/94.50 of $9.22) | $9.76 | |
Redemption proceeds per share | $9.22 | |
Institutional Shares: | ||
Net asset value per share ($1,702,253 ÷ 184,038 shares outstanding), no par value, unlimited shares authorized | $9.25 | |
Offering price per share | $9.25 | |
Redemption proceeds per share | $9.25 |
Investment Income: | |||
Dividends (including $289 received from an affiliated holding* and net of foreign taxes withheld of $292) | $27,663 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $9,404 | ||
Administrative fee (Note 5) | 947 | ||
Custodian fees | 2,076 | ||
Transfer agent fee | 2,444 | ||
Directors'/Trustees' fees (Note 5) | 1,756 | ||
Auditing fees | 17,363 | ||
Legal fees | 6,091 | ||
Portfolio accounting fees | 31,576 | ||
Other service fees (Notes 2 and 5) | 589 | ||
Share registration costs | 18,322 | ||
Printing and postage | 8,130 | ||
Taxes | 80 | ||
Miscellaneous (Note 5) | 3,410 | ||
TOTAL EXPENSES | 102,188 | ||
Waiver and Reimbursements: | |||
Waiver/reimbursement of investment adviser fee (Note 5) | $(9,404) | ||
Reimbursement of other operating expenses (Note 5) | (81,410) | ||
TOTAL WAIVER AND REIMBURSEMENTS | (90,814) | ||
Net expenses | 11,374 | ||
Net investment income | 16,289 | ||
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: | |||
Net realized loss on investments (including realized loss of $(1) on sales of investments in an affiliated holding*) | (51,318) | ||
Net realized loss on foreign currency transactions | (6) | ||
Net change in unrealized appreciation of investments (including net change in unrealized depreciation of $(2) on investments in an affiliated holding*) | (201,372) | ||
Net realized and unrealized loss on investments and foreign currency transactions | (252,696) | ||
Change in net assets resulting from operations | $(236,407) |
* | See information listed after the Fund's Portfolio of Investments |
Six Months Ended (unaudited) 3/31/2019 | Year Ended 9/30/2018 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $16,289 | $21,626 |
Net realized gain (loss) | (51,324) | 458,232 |
Net change in unrealized appreciation/depreciation | (201,372) | (354,757) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | (236,407) | 125,101 |
Distributions to Shareholders: | ||
Class A Shares | (108,898) | (16,145) |
Institutional Shares | (402,900) | (75,666) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (511,798) | (91,811) |
Share Transactions: | ||
Proceeds from sale of shares | 114,753 | 1,104,410 |
Net asset value of shares issued to shareholders in payment of distributions declared | 477,038 | 88,036 |
Cost of shares redeemed | (367,240) | (1,825,765) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 224,551 | (633,319) |
Change in net assets | (523,654) | (600,029) |
Net Assets: | ||
Beginning of period | 2,658,152 | 3,258,181 |
End of period | $2,134,498 | $2,658,152 |
■ | Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market. |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Fund's Board of Trustees (the “Trustees”). |
■ | 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 Trustees. |
■ | For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, 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. |
■ | 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. |
Six Months Ended 3/31/2019 | Year Ended 9/30/2018 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 5,612 | $60,253 | 2,273 | $31,741 |
Shares issued to shareholders in payment of distributions declared | 13,834 | 108,876 | 1,151 | 16,142 |
Shares redeemed | (16,403) | (170,679) | (6,553) | (90,420) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 3,043 | $(1,550) | (3,129) | $(42,537) |
Six Months Ended 3/31/2019 | Year Ended 9/30/2018 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 6,167 | $54,500 | 76,397 | $1,072,669 |
Shares issued to shareholders in payment of distributions declared | 46,662 | 368,162 | 5,114 | 71,894 |
Shares redeemed | (17,276) | (196,561) | (124,915) | (1,735,345) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 35,553 | $226,101 | (43,404) | $(590,782) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 38,596 | $224,551 | (46,533) | $(633,319) |
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 | $682,132 |
Sales | $1,004,235 |
Beginning Account Value 10/1/2018 | Ending Account Value 3/31/2019 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $918.40 | $5.84 |
Institutional Shares | $1,000 | $919.00 | $4.64 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,018.80 | $6.14 |
Institutional Shares | $1,000 | $1,020.10 | $4.89 |
1 | Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.22% |
Institutional Shares | 0.97% |
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 314197609
2019 ©Federated Investors, 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 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 second fiscal quarter of 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.
RegistrantFederated High Yield Trust
By/S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
DateMay 22, 2019
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
DateMay 22, 2019
By/S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
DateMay 22, 2019