United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-6165
(Investment Company Act File Number)
Federated Municipal Securities Income Trust
_______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Investors Funds
4000 Ericsson Drive
Warrendale, Pennsylvania 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
John W. McGonigle, 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: 08/31/15
Date of Reporting Period: 08/31/15
Item 1. Reports to Stockholders
Share Class | Ticker |
A | FMOAX |
B | FMOBX |
C | FMNCX |
F | FHTFX |
Institutional | FMYIX |
1 | Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for information regarding the effect of the reorganization of Federated Municipal High Yield Advantage Fund, Inc., a predecessor fund, into the Fund as of the close of business on November 10, 2006. |
2 | Income may be subject to state taxes, local taxes and the federal alternative minimum tax for individuals or corporations. |
3 | The Blended Index is being used for comparison purposes because, although it is not the Fund's broad-based securities market index, the Fund Adviser believes it more closely reflects the market sectors in which the Fund invests. Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the Main Index and the Blended Index. |
4 | Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the MHYMFA. |
5 | Credit ratings pertain only to the securities in the portfolio and do not protect Fund shares against market risk. |
6 | Duration is a measure of a security's price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities with shorter durations. For purposes of this Management Discussion of Fund Performance, duration is determined using a third-party analytical system. |
7 | Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices. |
8 | Investment-grade securities and noninvestment-grade securities may either be: (a) rated by a nationally recognized statistical ratings organization or rating agency; or (b) unrated securities that the Fund's investment adviser (“Adviser”) believes are of comparable quality. The rating agencies that provided the ratings for rated securities include Standard and Poor's, Moody's Investor Services, Inc. and Fitch Rating Service. When ratings vary, the highest rating is used. Credit ratings of “AA” or better are considered to be high credit quality; credit ratings of “A” are considered high or medium/good quality; and credit ratings of “BBB” are considered to be medium/good credit quality, and the lowest category of investment-grade securities; credit ratings of “BB” and below are lower-rated, noninvestment-grade securities or junk bonds; and credit ratings of “CCC” or below are noninvestment-grade securities that have high default risk. Any credit quality breakdown does not give effect to the impact of any credit derivative investments made by the Fund. Credit ratings are an indication of the risk that a security will default. They do not protect a security from credit risk. Lower-rated bonds typically offer higher yields to help compensate investors for the increased risk associated with them. Among these risks are lower creditworthiness, greater price volatility, more risk to principal and income than with higher-rated securities and increased possibilities of default. |
Federated Municipal High Yield Advantage Fund - | Class A Shares | Class F Shares | Institutional Shares | Main Index | Blended Index | MHYMFA |
F | F | F | I | I | I | |
8/31/2005 | 9,550 | 9,900 | 10,000 | 10,000 | 10,000 | 10,000 |
8/31/2006 | 10,008 | 10,377 | 10,480 | 10,348 | 10,590 | 10,516 |
8/31/2007 | 10,057 | 10,425 | 10,515 | 10,589 | 10,710 | 10,512 |
8/31/2008 | 9,669 | 10,023 | 10,094 | 10,945 | 10,460 | 10,154 |
8/31/2009 | 9,198 | 9,535 | 9,589 | 11,457 | 10,146 | 9,529 |
8/31/2010 | 10,800 | 11,196 | 11,242 | 12,625 | 11,953 | 11,146 |
8/31/2011 | 10,939 | 11,341 | 11,386 | 12,956 | 12,245 | 11,256 |
8/31/2012 | 12,534 | 12,994 | 13,047 | 14,170 | 14,033 | 12,934 |
8/31/2013 | 11,886 | 12,322 | 12,373 | 13,640 | 13,439 | 12,212 |
8/31/2014 | 13,615 | 14,114 | 14,193 | 15,080 | 15,353 | 13,888 |
8/31/2015 | 14,245 | 14,768 | 14,889 | 15,439 | 15,668 | 14,381 |
■ | Total returns shown include the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550), for Class A Shares and for Class F Shares the maximum sales charge of 1.00% ($10,000 investment minus $100 sales charge =$9,900) and the maximum contingent deferred sales charge of 1.00% as applicable. |
1 Year | 5 Years | 10 Years | |
Class A Shares | -0.11% | 4.74% | 3.60% |
Class B Shares | -1.65% | 4.55% | 3.46% |
Class C Shares | 2.73% | 4.88% | 3.29% |
Class F Shares | 2.59% | 5.47% | 3.98% |
Institutional Shares6 | 4.90% | 5.78% | 4.06% |
Main Index | 2.38% | 4.11% | 4.44% |
Blended Index | 2.06% | 5.56% | 4.59% |
MHYMFA | 3.59% | 5.06% | 3.59% |
1 | Represents a hypothetical investment of $10,000 in the Fund after deducting applicable sales charges: For Class A Shares, the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550); for Class B Shares, the maximum contingent deferred sales charge is 5.50% on any redemption less than one year from the purchase date; for Class C Shares, a 1.00% contingent deferred sales charge would be applied on any redemption less than one year from the purchase date; for Class F Shares, the maximum sales charge of 1.00% ($10,000 investment minus $100 sales charge = $9,900) and a contingent deferred sales charge of 1.00% would be applied on any redemption less than three years from the purchase date. The Fund's performance assumes the reinvestment of all dividends and distributions. The Main Index, Blended Index and MHYMFA have been adjusted to reflect reinvestment of dividends on securities in the indexes and the average. |
2 | Federated Municipal High Yield Advantage Fund, Inc. (“Predecessor Fund”) was reorganized into Federated Municipal High Yield Advantage Fund (“Fund”), a series of Federated Municipal Securities Income Trust, as of the close of business on November 10, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The information presented for periods prior to the close of business on November 10, 2006, refers to the performance of the Predecessor Fund, which after the reorganization is the Fund's performance as a result of the reorganization. |
3 | The Main Index is a broad, comprehensive, market value-weighted index composed of approximately 55,000 bond issues that are exempt from U.S. federal income taxes or subject to AMT. Eligibility criteria for inclusion in the Main Index include, but are not limited to: the bond issuer must be a state (including the Commonwealth of Puerto Rico and U.S. territories) or a local government or a state or local government entity where interest on the bond is exempt from U.S. federal income taxes or subject to the AMT; the bond must be held by a mutual fund for which Standard & Poor's Securities Evaluations, Inc. provides prices; it must be denominated in U.S. dollars and have a minimum par amount of $2 million; and the bond must have a minimum term to maturity and/or call date greater than or equal to one calendar month. The Main Index is rebalanced monthly. The Main Index is not adjusted to reflect sales charges, expenses and other fees that the Securities and Exchange Commission (SEC) requires to be reflected in the Fund's performance. The Main Index is unmanaged, and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. |
4 | The Blended Index is a custom blended index that represents, by market weighting, 25% of the A-rated and higher component of the Main Index, 25% of the BBB-rated component of the Main Index and 50% of the below investment grade (bonds with ratings of less than BBB-/Baa3) component of the Main Index, all with remaining maturities of three years or more. The Blended Index is not adjusted to reflect sales charges, expenses and other fees that the SEC requires to be reflected in the Fund's performance. The Blended Index is unmanaged, and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. |
5 | Morningstar figures represent the average of the total returns reported by all the mutual funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. |
6 | The Fund's Institutional Shares commenced operations on June 11, 2013. For the period prior to the commencement of operations of Institutional Shares, the performance information shown is for the Fund's Class F Shares, adjusted to reflect the expenses of the Fund's IS Class for each year for which the Fund's IS Class expenses would have exceeded the actual expenses paid by the Fund's Class F Shares. |
Sector Composition | Percentage of Total Net Assets |
Senior Care | 11.4% |
Industrial Development Bond/Pollution Control Revenue Bond | 10.7% |
Hospital | 10.1% |
Education | 9.1% |
Dedicated Tax | 7.7% |
Incremental Tax | 6.2% |
Tobacco | 5.9% |
General Obligation—State | 4.3% |
Electric & Gas | 4.3% |
Toll road | 4.3% |
Other2 | 24.3% |
Other Assets and Liabilities—Net3 | 1.7% |
TOTAL | 100.0% |
1 | Sector classifications, and the assignment 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, including bond insurers and banks, such as a guarantor, 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 74.0% 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. |
Principal Amount | Value | ||
MUNICIPAL BONDS—98.1% | |||
Alabama—1.7% | |||
$2,000,000 | Alabama State Port Authority, Docks Facilities Revenue Bonds (Series 2010), 6.00% (Original Issue Yield: 6.25%), 10/1/2040 | $2,315,580 | |
1,500,000 | Huntsville, AL Special Care Facilities Financing Authority, Retirement Facilities Revenue Bonds (Series 2007), 5.50% (Redstone Village)/(Original Issue Yield: 5.60%), 1/1/2043 | 1,502,745 | |
500,000 | Huntsville, AL Special Care Facilities Financing Authority, Retirement Facilities Revenue Bonds (Series 2011A), 7.50% (Redstone Village)/(Original Issue Yield: 7.625%), 1/1/2047 | 554,155 | |
2,000,000 | Jefferson County, AL Sewer System, Senior Lien Sewer Revenue Current Interest Warrants (Series 2013-A), 5.50% (AGM INS)/(Original Issue Yield: 5.65%), 10/1/2053 | 2,203,700 | |
2,000,000 | Jefferson County, AL Sewer System, Senior Lien Sewer Revenue Current Interest Warrants (Series 2013A), 5.25% (AGM INS), 10/1/2048 | 2,171,100 | |
835,000 | Selma, AL IDB, Gulf Opportunity Zone Bonds (Series 2010A), 5.80% (International Paper Co.), 5/1/2034 | 949,904 | |
TOTAL | 9,697,184 | ||
Alaska—0.5% | |||
1,000,000 | 1,2 | Alaska Industrial Development and Export Authority, Community Provider Revenue Bonds (Series 2007C), 6.00% (Boys & Girls Home & Family Services, Inc.), 12/1/2036 | 329,700 |
2,000,000 | 3,4 | Koyukuk, AK, Revenue Bonds (Series 2011), 7.75% (Tanana Chiefs Conference Health Care)/(Original Issue Yield: 8.125%), 10/1/2041 | 2,294,640 |
TOTAL | 2,624,340 | ||
Arizona—2.7% | |||
4,000,000 | Maricopa County, AZ Pollution Control Corp., PCR Refunding Bonds (Series 2003A), 6.25% (Public Service Co., NM), 1/1/2038 | 4,450,720 | |
1,500,000 | Maricopa County, AZ Pollution Control Corp., PCR Refunding Bonds (Series 2009A), 7.25% (El Paso Electric Co.), 2/1/2040 | 1,725,600 | |
1,500,000 | 3,4 | Phoenix, AZ IDA, Education Facility Revenue Bonds (Series 2014A), 5.00% (Great Heart Academies), 7/1/2044 | 1,503,090 |
1,385,000 | Pima County, AZ IDA, PCRBs (Series 2009A), 4.95% (Tucson Electric Power Co.), 10/1/2020 | 1,573,485 | |
4,955,000 | Salt Verde Financial Corp., AZ, Senior Gas Revenue Bonds (Series 2007), 5.00% (Citigroup, Inc. GTD), 12/1/2037 | 5,366,414 | |
430,000 | 3,4 | Verrado Community Facilities District No. 1, AZ, District GO Refunding Bonds (Series 2013A), 6.00%, 7/15/2027 | 477,751 |
TOTAL | 15,097,060 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
California—8.1% | |||
$2,000,000 | California PCFA, Solid Waste Disposal Revenue Refunding Bonds (Series 2015A-3), 4.30% (Waste Management, Inc.), 7/1/2040 | $1,999,900 | |
750,000 | 3,4 | California School Finance Authority, School Facility Revenue Bonds (Series 2014A), 5.125% (KIPP LA), 7/1/2044 | 790,523 |
565,000 | 3,4 | California School Finance Authority, School Facility Revenue Bonds (Series 2015A), 5.00% (KIPP LA), 7/1/2045 | 591,792 |
2,750,000 | California State, Various Purpose UT GO Bonds, 5.00%, 8/1/2035 | 3,124,440 | |
2,500,000 | California State, Various Purpose UT GO Bonds, 5.25%, 10/1/2029 | 2,892,525 | |
2,500,000 | California State, Various Purpose UT GO Bonds, 6.00% (Original Issue Yield: 6.10%), 4/1/2038 | 2,911,975 | |
1,085,000 | 3,4 | California Statewide CDA MFH, Revenue Bonds (Series 1999X), 6.65% (Magnolia City Lights Project), 7/1/2039 | 1,085,987 |
2,000,000 | Chula Vista, CA, COPs, 5.50% (Original Issue Yield: 5.88%), 3/1/2033 | 2,278,420 | |
500,000 | Corona-Norco USD Community Facilities District No. 98-1, CA, 2013 Special Tax Refunding Bonds, 5.00%, 9/1/2032 | 549,740 | |
3,000,000 | Foothill/Eastern Transportation Corridor Agency, CA, Toll Road Revenue Refunding Bonds (Series 2013A), 6.00% (Original Issue Yield: 6.40%), 1/15/2053 | 3,478,680 | |
500,000 | Golden State Tobacco Securitization Corp., CA, Enhanced Tobacco Settlement Asset-Backed Bonds (Series 2013A), 5.00% (California State), 6/1/2029 | 568,300 | |
2,000,000 | Golden State Tobacco Securitization Corp., CA, Enhanced Tobacco Settlement Asset-Backed Bonds (Series 2015A), 5.00% (California State), 6/1/2045 | 2,195,620 | |
530,000 | Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Bonds (Series 2007A-1), 5.75%, 6/1/2047 | 452,509 | |
6,000,000 | Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Revenue Bonds (Series 2007A-1), 5.125% (Original Issue Yield: 5.27%), 6/1/2047 | 4,672,800 | |
1,000,000 | Irvine, CA Community Facilities District No. 2013-3, Special Tax Bonds (Series 2014), 5.00% (Improvement Area No. 1 (Great Park)), 9/1/2049 | 1,067,940 | |
95,000 | Irvine, CA Reassessment District No. 13-1, LO Improvement Bonds, 5.00%, 9/2/2028 | 106,229 | |
365,000 | Irvine, CA Reassessment District No. 13-1, LO Improvement Bonds, 5.00%, 9/2/2029 | 405,880 | |
180,000 | Irvine, CA Reassessment District No. 13-1, LO Improvement Bonds, 5.00%, 9/2/2030 | 199,762 | |
1,000,000 | Los Angeles, CA Harbor Department, Revenue Refunding Bonds (Series 2014A), 5.00%, 8/1/2044 | 1,099,540 | |
2,500,000 | M-S-R Energy Authority, CA, Gas Revenue Bonds (Series 2009A), 7.00% (Citigroup, Inc. GTD), 11/1/2034 | 3,411,050 | |
500,000 | Poway, CA USDT, Special Tax Bonds (Series 2012), 5.00% (Community Facilities District No. 6 (4S Ranch)), 9/1/2033 | 544,590 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
California—continued | |||
$2,000,000 | Riverside County, CA Redevelopment Agency, Tax Allocation Bonds (Series 2010D), 6.00% (Desert Communities Redevelopment Project Area)/(Original Issue Yield: 6.02%), 10/1/2037 | $2,304,540 | |
1,500,000 | Riverside County, CA Redevelopment Agency, Tax Allocation Bonds (Series 2010E), 6.50% (Interstate 215 Corridor Redevelopment Project Area)/(Original Issue Yield: 6.53%), 10/1/2040 | 1,755,210 | |
349,000 | 1 | San Bernardino County, CA Housing Authority, Subordinated Revenue Bonds, 7.25% (Glen Aire Park & Pacific Palms), 4/15/2042 | 168,707 |
1,250,000 | San Buenaventura, CA, Revenue Bonds (Series 2011), 8.00% (Community Memorial Health System), 12/1/2031 | 1,567,200 | |
1,000,000 | San Francisco, CA City & County Redevelopment Finance Agency, Tax Allocation Bonds (Series 2011C), 6.75% (Mission Bay North Redevelopment)/(Original Issue Yield: 6.86%), 8/1/2041 | 1,202,640 | |
2,000,000 | San Jose, CA Airport, Airport Revenue Bonds (Series 2011A-1), 6.25%, 3/1/2034 | 2,345,580 | |
1,250,000 | Santa Margarita, CA Water District Community Facilities District No. 2013-1, Special Tax Bonds (Series 2013), 5.625% (Original Issue Yield: 5.70%), 9/1/2043 | 1,380,987 | |
TOTAL | 45,153,066 | ||
Colorado—5.4% | |||
2,000,000 | Castle Oaks, CO Metropolitan District No. 3, LT GO Bonds (Series 2015), 6.25%, 12/1/2044 | 1,975,940 | |
2,000,000 | Central Platte Valley, CO Metropolitan District, GO Refunding Bonds (Series 2013A), 5.625% (Original Issue Yield: 5.79%), 12/1/2038 | 2,262,340 | |
1,250,000 | Central Platte Valley, CO Metropolitan District, GO Refunding Bonds (Series 2013A), 6.00%, 12/1/2038 | 1,451,750 | |
1,000,000 | Central Platte Valley, CO Metropolitan District, GO Refunding Bonds (Series 2014), 5.00%, 12/1/2043 | 1,025,750 | |
1,625,000 | Colorado Educational & Cultural Facilities Authority, Charter School Refunding & Improvement Revenue Bonds (Series 2014), 5.50% (Skyview Academy), 7/1/2049 | 1,699,604 | |
1,000,000 | 3,4 | Colorado Educational & Cultural Facilities Authority, Charter School Refunding & Improvement Revenue Bonds (Series 2015), 5.00% (University Lab School)/(Original Issue Yield: 5.02%), 12/15/2045 | 980,050 |
715,000 | Colorado Educational & Cultural Facilities Authority, Charter School Revenue Bonds (Series 2007A), 5.70% (Windsor Charter Academy)/(Original Issue Yield: 5.70%), 5/1/2037 | 726,168 | |
785,000 | Colorado Educational & Cultural Facilities Authority, Charter School Revenue Bonds (Series 2007A), 5.75% (Northeast Academy Charter School), 5/15/2037 | 623,274 | |
1,000,000 | Colorado Educational & Cultural Facilities Authority, Charter School Revenue Bonds (Series 2007A), 6.00% (Monument Academy Charter School)/(United States Treasury PRF 10/1/2017@100), 10/1/2037 | 1,107,650 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Colorado—continued | |||
$800,000 | Colorado Health Facilities Authority, Health & Residential Care Facilities Revenue Bonds (Series 2007), 5.30% (Volunteers of America Care Facilities), 7/1/2037 | $771,376 | |
1,100,000 | Colorado Health Facilities Authority, Revenue Bonds (Series 2010A), 6.25% (Total Long Term Care National Obligated Group), 11/15/2040 | 1,207,613 | |
2,000,000 | 2 | Colorado Springs Urban Renewal Authority, Tax Increment Revenue Bonds (Series 2007), 7.00% (University Village Colorado), 12/1/2029 | 1,759,120 |
1,540,000 | Denver (City & County), CO, Airport System Revenue Bonds (Series 2011A), 5.25% (Denver, CO City & County Department of Aviation)/(Original Issue Yield: 5.35%), 11/15/2022 | 1,790,897 | |
450,000 | Eagle County, CO Air Terminal Corp., Airport Terminal Project Revenue Improvement Bonds (Series 2006B), 5.25%, 5/1/2020 | 456,696 | |
750,000 | Eagle County, CO Air Terminal Corp., Revenue Refunding Bonds (Series 2011A), 6.00%, 5/1/2027 | 816,023 | |
1,500,000 | Foothills Metropolitan District, CO, Special Revenue Bonds (Series 2014), 6.00%, 12/1/2038 | 1,581,480 | |
2,000,000 | Promenade at Castle Rock Metropolitan District No. 1, LT GO Bonds (Series 2015A), 5.75% (Original Issue Yield: 5.88%), 12/1/2039 | 1,960,100 | |
2,000,000 | Public Authority for Colorado Energy, Natural Gas Purchase Revenue Bonds (Series 2008), 6.25% (Bank of America Corp. GTD)/(Original Issue Yield: 6.63%), 11/15/2028 | 2,500,220 | |
2,000,000 | STC Metropolitan District No. 2, CO, LT GO Senior Bonds (Series 2015A), 6.00% (Original Issue Yield: 6.25%), 12/1/2038 | 1,894,420 | |
1,030,000 | Tallyn's Reach Metropolitan District No. 3, CO, LT GO Refunding & Improvement Bonds (Series 2013), 5.125%, 11/1/2038 | 1,065,988 | |
2,000,000 | Three Springs Metropolitan District No. 3, CO, Property Tax Supported Revenue Bonds (Series 2010), 7.75%, 12/1/2039 | 2,133,140 | |
TOTAL | 29,789,599 | ||
Connecticut—0.2% | |||
1,000,000 | Connecticut Development Authority, Airport Facility Revenue Bonds, 7.95% (Bombardier, Inc.), 4/1/2026 | 1,009,550 | |
Delaware—0.4% | |||
1,905,000 | Delaware EDA, Gas Facilities Refunding Bonds, 5.40% (Delmarva Power and Light Co.), 2/1/2031 | 2,109,387 | |
District of Columbia—0.6% | |||
2,000,000 | District of Columbia, Revenue Bonds (Series 2012A), 5.00% (Friendship Public Charter School, Inc.), 6/1/2042 | 2,068,640 | |
1,030,000 | District of Columbia, Revenue Bonds (Series 2013A), 6.00% (KIPP DC), 7/1/2043 | 1,175,477 | |
TOTAL | 3,244,117 | ||
Florida—6.9% | |||
3,000,000 | Alachua County, FL, IDRBs (Series 2007A), 5.875% (North Florida Retirement Village, Inc.), 11/15/2042 | 3,059,250 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Florida—continued | |||
$1,035,000 | Arborwood, FL Community Development District, Capital Improvement Revenue Bonds (Series 2005A-2), 5.35%, 5/1/2036 | $1,035,093 | |
165,000 | 1,2 | Arborwood, FL Community Development District, Special Assessment Revenue Bonds (Series 2014A-1), 0.00% (Step Coupon 5/1/2016)/(Original Issue Yield: 6.90%), 5/1/2036 | 177,088 |
104,232 | 1 | Capital Trust Agency, FL, Housing Revenue Notes, 5.95% (Atlantic Housing Foundation Properties), 1/15/2039 | 2,609 |
3,000,000 | 3,4 | Collier County, FL IDA, Continuing Care Community Revenue Bonds (Series 2013A), 8.25% (Arlington of Naples)/(Original Issue Yield: 8.375%), 5/15/2049 | 3,548,310 |
1,000,000 | Florida State Mid-Bay Authority, First Senior Lien Revenue Bonds (Series 2015A), 5.00%, 10/1/2040 | 1,072,830 | |
1,000,000 | Lakewood Ranch Stewardship District, FL, Special Assessment Revenue Bonds (Series 2015), 4.875% (Lakewood Centre North)/(Original Issue Yield: 4.96%), 5/1/2045 | 978,890 | |
2,000,000 | Lee County, FL IDA, Healthcare Facilities Revenue Refunding Bonds (Series 2012), 6.50% (Cypress Cove at Healthpark), 10/1/2047 | 2,223,580 | |
2,000,000 | Martin County, FL Health Facilities Authority, Hospital Revenue Bonds (Series 2012), 5.50% (Martin Memorial Medical Center)/(Original Issue Yield: 5.53%), 11/15/2042 | 2,187,420 | |
2,000,000 | Martin County, FL IDA, Industrial Development Revenue Refunding Bonds (Series 2013), 4.20% (Indiantown Cogeneration, L.P.), 12/15/2025 | 2,026,760 | |
2,000,000 | 3,4 | Miami, FL, SO Non-Ad Valorem Revenue Refunding Bonds (Series 2012), 5.00%, 3/1/2030 | 2,214,460 |
1,000,000 | Miami-Dade County, FL Aviation, Aviation Revenue Refunding Bonds (Series 2014A), 5.00%, 10/1/2036 | 1,087,410 | |
4,000,000 | Miami-Dade County, FL Transit System, Sales Surtax Revenue Bonds (Series 2012), 5.00%, 7/1/2042 | 4,436,040 | |
745,000 | Midtown Miami, FL Community Development District, Special Assessment & Revenue Refunding Bonds (Series 2014A), 5.00% (Original Issue Yield: 5.25%), 5/1/2037 | 779,702 | |
1,000,000 | Palm Beach County, FL Health Facilities Authority, Revenue Bonds (Series 2014A), 7.50% (Sinai Residences of Boca Raton)/(Original Issue Yield: 7.625%), 6/1/2049 | 1,155,330 | |
1,910,000 | 3,4 | Palm Beach County, FL, Tax-Exempt Revenue Bonds (Series 2005A), 6.75% (G-Star School of the Arts for Motion Pictures and Broadcasting Charter School), 5/15/2035 | 1,767,170 |
1,405,000 | Pinellas County, FL Educational Facilities Authority, Revenue Bonds (Series 2011A), 7.125% (Pinellas Preparatory Academy), 9/15/2041 | 1,533,347 | |
145,000 | 1,2 | Reunion East Community Development District, FL, Special Assessment Bonds (Series 2002A-1), 7.375%, 5/1/2033 | 1 |
165,000 | Reunion East Community Development District, FL, Special Assessment Refunding Bonds (2015-1), 6.60%, 5/1/2033 | 162,182 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Florida—continued | |||
$1,000,000 | South Lake County, FL Hospital District, Revenue Bonds (Series 2009A), 6.25% (South Lake Hospital, Inc.)/(Original Issue Yield: 6.30%), 4/1/2039 | $1,137,310 | |
10,000 | 1,2 | Tolomato Community Development District, FL, Special Assessment Revenue Bonds (Series 1), 6.55%, 5/1/2027 | 10,156 |
1,345,000 | Tolomato Community Development District, FL, Special Assessment Revenue Bonds (Series 2006), 5.40%, 5/1/2037 | 1,345,861 | |
290,000 | Tolomato Community Development District, FL, Special Assessment Revenue Bonds (Series 2015-1), 0.00% (Step Coupon 11/1/2021@6.61%)/(Original Issue Yield: 6.93%), 5/1/2040 | 178,747 | |
175,000 | Tolomato Community Development District, FL, Special Assessment Revenue Bonds (Series 2015-2), 0.00% (Step Coupon 11/1/2024@6.61%)/(Original Issue Yield: 6.752%), 5/1/2040 | 91,227 | |
190,000 | 1,2 | Tolomato Community Development District, FL, Special Assessment Revenue Bonds (Series 2015-3), 6.61%, 5/1/2040 | 2 |
155,000 | 1,2 | Tolomato Community Development District, FL, Special Assessment Revenue Bonds (Series 3), 6.55%, 5/1/2027 | 2 |
55,000 | Tolomato Community Development District, FL, Special Assessment Revenue Bonds (Series A-2), 0.00% (Step Coupon 5/1/2017)/(Original Issue Yield: 6.61%), 5/1/2039 | 40,345 | |
135,000 | Tolomato Community Development District, FL, Special Assessment Revenue Bonds (Series A-3), 0.00% (Step Coupon 5/1/2019)/(Original Issue Yield: 6.61%), 5/1/2040 | 80,710 | |
70,000 | Tolomato Community Development District, FL, Special Assessment Revenue Bonds (Series A-4), 0.00% (Step Coupon 5/1/2022)/(Original Issue Yield: 6.61%), 5/1/2040 | 30,986 | |
200,000 | Tolomato Community Development District, FL, Special Assessment Revenue Refunding Bonds (Series A-1), 6.55% (Original Issue Yield: 6.60%), 5/1/2027 | 200,528 | |
865,000 | Verandah East, FL Community Development District, Capital Improvement Revenue Bonds (Series 2006A), 5.40%, 5/1/2037 | 866,185 | |
1,000,000 | Verandah West, FL Community Development District, Capital Improvement Revenue Refunding Bonds (Series 2013), 5.00% (Original Issue Yield: 5.125%), 5/1/2033 | 1,021,390 | |
1,630,000 | Volusia County, FL Education Facility Authority, Educational Facilities Revenue Refunding Bonds (Series 2005), 5.00% (Embry-Riddle Aeronautical University, Inc.)/(Radian Asset Assurance, Inc. INS), 10/15/2025 | 1,639,601 | |
2,000,000 | Willow Walk, FL Community Development District, Special Assessment Bonds (Series 2015), 5.625%, 5/1/2045 | 2,017,340 | |
425,000 | Winter Garden Village at Fowler Groves Community Development District, FL, Special Assessment Bonds (Series 2006), 5.65%, 5/1/2037 | 428,561 | |
TOTAL | 38,536,423 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Georgia—1.4% | |||
$4,000,000 | Atlanta, GA Water & Wastewater, Revenue Bonds (Series 2009A), 6.25% (United States Treasury PRF 11/1/2019@100)/(Original Issue Yield: 6.38%), 11/1/2039 | $4,830,520 | |
1,000,000 | Atlanta, GA Water & Wastewater, Revenue Refunding Bonds (Series 2015), 5.00%, 11/1/2040 | 1,127,320 | |
770,000 | Atlanta, GA, Tax Allocation Bonds (Series 2005B), 5.60% (Eastside Tax Allocation District)/(Original Issue Yield: 5.65%), 1/1/2030 | 772,757 | |
1,000,000 | Medical Center Hospital Authority, GA, Revenue Refunding Bonds (Series 2007), 5.25% (Spring Harbor at Green Island), 7/1/2037 | 1,008,350 | |
TOTAL | 7,738,947 | ||
Guam—0.8% | |||
500,000 | Guam Government LO (Section 30), Bonds (Series 2009A), 5.75% (Original Issue Yield: 6.00%), 12/1/2034 | 553,405 | |
1,000,000 | Guam Government, GO Bonds (Series 2009A), 7.00% (United States Treasury PRF 11/15/2019@100)/(Original Issue Yield: 7.18%), 11/15/2039 | 1,223,320 | |
1,000,000 | Guam Government, UT GO Bonds (Series 2007A), 5.25% (United States Treasury PRF 11/15/2017@100)/(Original Issue Yield: 5.45%), 11/15/2037 | 1,079,510 | |
1,000,000 | Guam International Airport Authority, General Revenue Bonds (Series 2013C), 6.125% (AGM INS)/(Original Issue Yield: 6.23%), 10/1/2043 | 1,160,480 | |
500,000 | Guam Power Authority, Revenue Bonds (Series 2012A), 5.00%, 10/1/2034 | 535,015 | |
TOTAL | 4,551,730 | ||
Hawaii—1.0% | |||
3,660,000 | Hawaii State Department of Budget & Finance, Special Purpose Revenue Bonds (Series 2009), 6.50% (Hawaiian Electric Co., Inc.), 7/1/2039 | 4,163,799 | |
1,000,000 | Hawaii State Department of Budget & Finance, Special Purpose Senior Living Revenue Bonds (Series A), 9.00% (15 Craigside)/(Original Issue Yield: 9.15%), 11/15/2044 | 1,252,790 | |
TOTAL | 5,416,589 | ||
Idaho—0.5% | |||
2,500,000 | Idaho Health Facilities Authority, Revenue Bonds (Series 2013A), 8.125% (Terraces of Boise)/(Original Issue Yield: 8.25%), 10/1/2049 | 2,667,450 | |
Illinois—7.1% | |||
500,000 | Chicago, IL Motor Fuel Tax, Motor Fuel Tax Revenue Refunding Bonds (Series 2013), 5.00% (AGM INS), 1/1/2033 | 524,265 | |
$1,750,000 | Chicago, IL O'Hare International Airport, General Airport Third Lien Revenue Bonds (Series 2011A), 5.75% (Original Issue Yield: 5.94%), 1/1/2039 | 2,011,520 | |
2,500,000 | Chicago, IL O'Hare International Airport, General Airport Third Lien Revenue Bonds (Series 2011C), 6.50%, 1/1/2041 | 2,993,550 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Illinois—continued | |||
$1,000,000 | Chicago, IL Sales Tax, Revenue Refunding Bonds (Series 2002), 5.00%, 1/1/2032 | $1,011,090 | |
1,250,000 | Chicago, IL Water Revenue, Second Lien Water Revenue Bonds (Series 2014), 5.00%, 11/1/2044 | 1,276,650 | |
1,500,000 | Chicago, IL, Project & Refunding UT GO Bonds (Series 2005D), 5.50% (Original Issue Yield: 5.81%), 1/1/2040 | 1,367,085 | |
415,000 | DuPage County, IL, Special Tax Bonds (Series 2006), 5.625% (Naperville Campus LLC), 3/1/2036 | 416,390 | |
1,500,000 | Illinois Finance Authority, Charter School Refunding & Improvement Revenue Bonds (Series 2011A), 7.125% (Uno Charter School Network, Inc.), 10/1/2041 | 1,683,705 | |
1,250,000 | Illinois Finance Authority, Education Revenue Bonds (Series 2015), 5.00% (Noble Network of Charter Schools), 9/1/2032 | 1,307,800 | |
1,100,000 | Illinois Finance Authority, Educational Facility Revenue, Senior Revenue Bonds (Series 2014A), 6.125% (Rogers Park Montessori School Project), 2/1/2045 | 1,124,948 | |
1,000,000 | Illinois Finance Authority, MFH Revenue Bonds (Series 2007), 6.10% (Dekalb Supportive Living Facility), 12/1/2041 | 1,006,860 | |
1,000,000 | Illinois Finance Authority, Revenue Bonds (Series 2005A), 5.625% (Friendship Village of Schaumburg)/(Original Issue Yield: 5.70%), 2/15/2037 | 992,890 | |
1,250,000 | Illinois Finance Authority, Revenue Bonds (Series 2005A), 6.00% (Landing at Plymouth Place)/(Original Issue Yield: 6.04%), 5/15/2037 | 1,249,950 | |
1,500,000 | Illinois Finance Authority, Revenue Bonds (Series 2005A), 6.25% (Smith Village), 11/15/2035 | 1,506,555 | |
1,000,000 | Illinois Finance Authority, Revenue Bonds (Series 2010), 7.25% (Friendship Village of Schaumburg)/(Original Issue Yield: 7.375%), 2/15/2045 | 1,067,880 | |
1,251,520 | 1,2 | Illinois Finance Authority, Revenue Bonds (Series 2010A), 6.125% (Clare at Water Tower), 5/15/2041 | 13 |
485,785 | 1,2,5 | Illinois Finance Authority, Revenue Bonds (Series 2010B) (Clare at Water Tower)/(Original Issue Yield: 5.00%), 5/15/2050 | 5 |
1,000,000 | Illinois Finance Authority, Revenue Bonds (Series 2015A), 5.00% (Rush University Medical Center Obligated Group), 11/15/2038 | 1,092,340 | |
1,000,000 | Illinois Finance Authority, Solid Waste Disposal Revenue Bonds, 5.05% (Waste Management, Inc.), 8/1/2029 | 1,013,660 | |
2,250,000 | Illinois State, UT GO Bonds (Series 2006), 5.00%, 1/1/2027 | 2,269,192 | |
2,000,000 | Illinois State, UT GO Bonds (Series 2013A), 5.00%, 4/1/2035 | 2,004,920 | |
1,000,000 | Illinois State, UT GO Bonds (Series February 2014), 5.00% (Original Issue Yield: 5.04%), 2/1/2039 | 994,490 | |
2,025,000 | Illinois State, UT GO Bonds (Series June 2013), 5.50% (Original Issue Yield: 5.65%), 7/1/2038 | 2,149,072 | |
2,000,000 | Illinois State, UT GO Bonds (Series May 2014), 5.00%, 5/1/2039 | 1,988,880 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Illinois—continued | |||
$1,410,000 | Illinois State, UT GO Refunding Bonds (Series May 2012), 5.00%, 8/1/2025 | $1,476,481 | |
1,000,000 | Quad Cities, IL Regional EDA, MFH Revenue Bonds (Series 2006), 6.00% (Heritage Woods of Moline SLF), 12/1/2041 | 1,003,100 | |
1,600,000 | Railsplitter Tobacco Settlement Authority, IL, Tobacco Settlement Revenue Bonds (Series 2010), 6.00% (Original Issue Yield: 6.10%), 6/1/2028 | 1,880,240 | |
2,000,000 | Southwestern, IL Development Authority, Health Facility Revenue Bonds (Series 2013), 7.625% (Memorial Group, Inc.)/(Original Issue Yield: 7.95%), 11/1/2048 | 2,473,960 | |
1,500,000 | Will-Kankakee, IL Regional Development Authority, MFH Revenue Bonds (Series 2007), 7.00% (Senior Estates Supportive Living), 12/1/2042 | 1,564,950 | |
TOTAL | 39,452,441 | ||
Indiana—2.3% | |||
1,250,000 | Carmel, IN, Revenue Bonds (Series 2012A), 7.125% (Barrington of Carmel)/(Original Issue Yield: 7.20%), 11/15/2042 | 1,386,450 | |
1,000,000 | Carmel, IN, Revenue Bonds (Series 2012A), 7.125% (Barrington of Carmel)/(Original Issue Yield: 7.30%), 11/15/2047 | 1,106,890 | |
1,305,000 | Indiana State Finance Authority, Environmental Revenue Refunding Bonds (Series 2010), 6.00% (United States Steel Corp.), 12/1/2026 | 1,379,946 | |
4,000,000 | Indiana State Finance Authority, Tax-Exempt Private Activity Bonds (Series 2013), 5.25% (Ohio River Bridges East End Crossing), 1/1/2051 | 4,174,200 | |
1,000,000 | Jasper County, IN, PCR Refunding Bonds (Series 2003), 5.70% (Northern Indiana Public Service Company)/(AMBAC Financial Group, Inc. INS), 7/1/2017 | 1,067,370 | |
2,000,000 | Rockport, IN, Revenue Refunding Bonds (Series 2012-A), 7.00% (AK Steel Corp.), 6/1/2028 | 1,769,520 | |
1,127,377 | 1,2 | St. Joseph County, IN Hospital Authority, Health Facilities Revenue Bonds (Series 2005), 5.375% (Madison Center Obligated Group), 2/15/2034 | 55,151 |
2,000,000 | Vigo County, IN Hospital Authority, Hospital Revenue Bond (Series 2007), 5.80% (Union Hospital)/(Original Issue Yield: 5.82%), 9/1/2047 | 2,074,380 | |
TOTAL | 13,013,907 | ||
Iowa—1.5% | |||
3,000,000 | Iowa Finance Authority, Midwestern Disaster Area Revenue Bonds (Series 2013), 5.25% (Iowa Fertilizer Co.)/(Original Issue Yield: 5.30%), 12/1/2025 | 3,257,610 | |
1,000,000 | Iowa Finance Authority, Midwestern Disaster Area Revenue Bonds (Series 2013), 5.50% (Iowa Fertilizer Co.), 12/1/2022 | 1,057,160 | |
994,700 | Iowa Finance Authority, Senior Living Facility Revenue Refunding Bonds (Series 2014A), 2.70% (Deerfield Retirement Community, Inc.), 11/15/2046 | 494,436 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Iowa—continued | |||
$186,592 | Iowa Finance Authority, Senior Living Facility Revenue Refunding Bonds (Series 2014B), 2.00% (Deerfield Retirement Community, Inc.), 5/15/2056 | $168 | |
3,750,000 | Tobacco Settlement Authority, IA, Tobacco Settlement Asset-Backed Bonds (Series 2005C), 5.50% (Original Issue Yield: 5.78%), 6/1/2042 | 3,283,312 | |
TOTAL | 8,092,686 | ||
Kansas—1.3% | |||
2,000,000 | Kansas State Development Finance Authority, Revenue Bonds, 5.75% (Adventist Health System/Sunbelt Obligated Group)/(Original Issue Yield: 5.95%), 11/15/2038 | 2,283,640 | |
1,000,000 | Manhattan, KS IDRBs, Industrial Revenue Bonds (Series 2007), 5.50% (Farrar Corp. Project)/(Original Issue Yield: 5.55%), 8/1/2021 | 964,990 | |
2,015,000 | Norwich, KS, Industrial Revenue Bonds (Series 2006), 5.90% (Farrar Corp. Project), 8/1/2021 | 2,014,375 | |
2,000,000 | Olathe, KS, Senior Living Facility Revenue Bonds (Series 2006A), 6.00% (Catholic Care Campus, Inc.), 11/15/2038 | 2,015,480 | |
20,000 | Sedgwick & Shawnee Counties, KS, SFM Revenue Bonds (Series 1997A-1), 6.95% (GNMA Home Mortgage Program COL), 6/1/2029 | 21,055 | |
TOTAL | 7,299,540 | ||
Kentucky—0.3% | |||
1,250,000 | Kentucky EDFA, Revenue Bonds (Series 2011A), 7.375% (Miralea)/(Original Issue Yield: 7.40%), 5/15/2046 | 1,411,788 | |
Louisiana—2.2% | |||
1,500,000 | Jefferson Parish, LA Hospital Service District No. 1, Hospital Revenue Refunding Bonds (Series 2011A), 6.00% (West Jefferson Medical Center)/(Original Issue Yield: 6.05%), 1/1/2039 | 1,746,705 | |
981,000 | 1,2 | Lakeshore Villages Master Community Development District, LA, Special Assessment Bonds (Series 2007), 5.25% (Original Issue Yield: 5.378%), 7/1/2017 | 343,517 |
1,000,000 | Louisiana Public Facilities Authority, 6.50% (Ochsner Clinic Foundation)/(Original Issue Yield: 6.65%), 5/15/2037 | 1,160,040 | |
3,000,000 | Louisiana Public Facilities Authority, Revenue Bonds (Series 2010A), 5.00% (Entergy Gulf States Louisiana LLC), 9/1/2028 | 3,011,310 | |
2,000,000 | Louisiana State Citizens Property Insurance Corp., Assessment Revenue Bonds (Series 2006C), 6.125% (Assured Guaranty Corp. INS)/(Original Issue Yield: 6.33%), 6/1/2025 | 2,260,940 | |
2,000,000 | New Orleans, LA Aviation Board, General Airport Revenue Bonds (Series 2015B), 5.00%, 1/1/2045 | 2,144,740 | |
1,500,000 | Tobacco Settlement Financing Corp., LA, Tobacco Settlement Asset-Backed Refunding Bonds (Series 2013A), 5.25%, 5/15/2035 | 1,661,025 | |
TOTAL | 12,328,277 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Maine—0.3% | |||
$1,335,000 | Maine Health & Higher Educational Facilities Authority, Revenue Bonds (Series 2011), 7.50% (MaineGeneral Medical Center), 7/1/2032 | $1,598,889 | |
Maryland—1.2% | |||
2,000,000 | Frederick County, MD, Tax Increment & Special Tax B LO Bonds (Series 2013B), 7.125% (Jefferson Technology Park)/(Original Issue Yield: 7.30%), 7/1/2043 | 2,242,080 | |
1,060,000 | Maryland State EDC, Port Facilities Revenue Refunding Bonds (Series 2010), 5.75% (CONSOL Energy, Inc.), 9/1/2025 | 1,078,529 | |
2,385,000 | Maryland State EDC, Revenue Bonds (Series B), 5.75% (Ports America Chesapeake, Inc.)/(Original Issue Yield: 5.875%), 6/1/2035 | 2,546,750 | |
1,000,000 | Westminster, MD, Revenue Bonds (Series 2014A), 6.25% (Lutheran Village at Miller's Grant, Inc.)/(Original Issue Yield: 6.30%), 7/1/2044 | 1,068,420 | |
TOTAL | 6,935,779 | ||
Massachusetts—0.6% | |||
2,000,000 | Massachusetts Development Finance Agency, Revenue Bonds (Series 2011I), 7.25% (Tufts Medical Center), 1/1/2032 | 2,400,640 | |
1,000,000 | Massachusetts HEFA, Revenue Bonds (Series 2003E), 6.75% (Jordan Hospital)/(Original Issue Yield: 7.00%), 10/1/2033 | 1,005,630 | |
TOTAL | 3,406,270 | ||
Michigan—4.1% | |||
1,000,000 | Dearborn, MI EDC, Revenue Refunding Bonds, 7.125% (Henry Ford Village)/(Original Issue Yield: 7.25%), 11/15/2043 | 1,011,510 | |
1,000,000 | Detroit, MI City School District, School Building & Site Improvement Refunding Bonds (Series 2012A), 5.00% (Q-SBLF GTD), 5/1/2028 | 1,094,900 | |
1,000,000 | Detroit, MI City School District, School Building & Site Improvement Refunding Bonds (Series 2012A), 5.00% (Q-SBLF GTD), 5/1/2031 | 1,081,660 | |
1,500,000 | Detroit, MI Sewage Disposal System, Revenue Refunding Senior Lien Bonds (Series 2012A), 5.25% (Original Issue Yield: 5.30%), 7/1/2039 | 1,606,425 | |
4,000,000 | Detroit, MI Water Supply System, Second Lien Revenue Refunding Bonds (Series 2006C), 5.00% (AGM INS), 7/1/2033 | 4,069,520 | |
2,500,000 | Kent Hospital Finance Authority, MI, Revenue Bonds (Series 2005A), 6.25% (Metropolitan Hospital), 7/1/2040 | 2,505,250 | |
2,000,000 | Michigan State Finance Authority Revenue, Local Government Loan Program Revenue Bonds (Series 2014B), 5.00% (Public Lighting Authority), 7/1/2044 | 2,112,420 | |
1,900,000 | Michigan State Finance Authority Revenue, Senior Lien Revenue Bonds (Series 2014 C-5), 5.00% (Detroit, MI Sewage Disposal System)/(National Public Finance Guarantee Corp. INS), 7/1/2020 | 2,131,059 | |
1,000,000 | Michigan State Finance Authority Revenue, Senior Lien Revenue Bonds (Series 2014 C-7), 5.00% (Detroit, MI Sewage Disposal System)/(National Public Finance Guarantee Corp. INS), 7/1/2032 | 1,093,600 | |
1,000,000 | Michigan State Finance Authority Revenue, Senior Lien Revenue Bonds (Series 2014 D-6), 5.00% (Detroit, MI Water Supply System)/(National Public Finance Guarantee Corp. INS), 7/1/2036 | 1,072,210 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Michigan—continued | |||
$5,000,000 | Michigan Tobacco Settlement Finance Authority, Tobacco Settlement Asset-Backed Bonds (Series 2007A), 6.00% (Original Issue Yield: 6.25%), 6/1/2048 | $4,167,350 | |
1,500,000 | Plymouth, MI Educational Center Charter School, Public School Academy Revenue Refunding Bonds, Series 2005, 5.625%, 11/1/2035 | 1,006,860 | |
TOTAL | 22,952,764 | ||
Minnesota—2.5% | |||
2,000,000 | Baytown Township, MN, Lease Revenue Bonds (Series 2008A), 7.00% (St. Croix Preparatory Academy)/(Original Issue Yield: 7.05%), 8/1/2038 | 2,074,060 | |
2,000,000 | Duluth, MN EDA, Health Care Facilities Revenue Bonds (Series 2012), 6.00% (St. Luke's Hospital of Duluth Obligated Group), 6/15/2039 | 2,206,860 | |
1,500,000 | Forest Lake, MN, Charter School Lease Revenue Bonds (Series 2014A), 5.75% (Lakes International Language Academy), 8/1/2044 | 1,632,375 | |
2,000,000 | St. Paul and Ramsey County, MN Housing and Redevelopment Authority, Charter School Lease Revenue Bonds (Series 2015A), 5.375% (Twin Cities Academy), 7/1/2050 | 2,001,360 | |
930,000 | St. Paul, MN Housing & Redevelopment Authority, Tax Increment Revenue Refunding Bonds (Series 2012), 5.00% (Upper Landing Project), 3/1/2029 | 971,943 | |
500,000 | St. Paul, MN Housing & Redevelopment Authority, Tax Increment Revenue Refunding Bonds (Series 2012), 5.00% (Upper Landing Project), 9/1/2026 | 526,910 | |
1,660,000 | Winona, MN Port Authority, Lease Revenue Bonds (Series 2007A), 6.00% (Bluffview Montessori School Project), 11/1/2027 | 1,661,793 | |
2,920,000 | Winona, MN Port Authority, Lease Revenue Bonds (Series 2007A), 6.15% (Bluffview Montessori School Project), 11/1/2037 | 2,923,037 | |
TOTAL | 13,998,338 | ||
Mississippi—0.2% | |||
945,000 | Warren County, MS Gulf Opportunity Zone, Gulf Opportunity Zone Bonds (Series 2011A), 5.375% (International Paper Co.), 12/1/2035 | 1,054,592 | |
Missouri—1.0% | |||
1,000,000 | Kirkwood, MO IDA, Retirement Community Revenue Bonds (Series 2010A), 8.25% (Aberdeen Heights Project)/(Original Issue Yield: 8.40%), 5/15/2039 | 1,136,000 | |
3,000,000 | Kirkwood, MO IDA, Retirement Community Revenue Bonds (Series 2010A), 8.25% (Aberdeen Heights Project)/(Original Issue Yield: 8.50%), 5/15/2045 | 3,394,050 | |
1,000,000 | St. Joseph, MO IDA, Healthcare Revenue Bonds, 7.00% (Living Community St. Joseph Project), 8/15/2032 | 1,001,420 | |
TOTAL | 5,531,470 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Nebraska—0.5% | |||
$2,500,000 | Central Plains Energy Project, NE, Gas Project Revenue Bonds (Project No. 3) (Series 2012), 5.25% (Goldman Sachs Group, Inc. GTD), 9/1/2037 | $2,732,225 | |
Nevada—1.1% | |||
970,000 | Clark County, NV Improvement District, Special Assessment Revenue Refunding Bonds (Series 2006B), 5.30% (Southern Highlands SID No.121-B)/(Original Issue Yield: 5.33%), 12/1/2029 | 965,596 | |
4,000,000 | Clark County, NV School District, LT GO Building Bonds (Series 2008A), 5.00%, 6/15/2025 | 4,392,560 | |
820,000 | North Las Vegas, NV SID No. 60, Subordinate LT Obligation Refunding Bonds (Series 2006B), 5.10% (Aliante SID No. 60), 12/1/2022 | 820,082 | |
TOTAL | 6,178,238 | ||
New Jersey—2.1% | |||
1,000,000 | 3,4 | Essex County, NJ Improvement Authority, Solid Waste Disposal Revenue Bonds (Series 2015), 5.25% (Covanta Energy Corp.), 7/1/2045 | 1,001,830 |
1,000,000 | New Jersey EDA, Energy Facility Revenue Bonds (Series 2012A), 5.125% (UMM Energy Partners LLC)/(Original Issue Yield: 5.19%), 6/15/2043 | 1,048,060 | |
940,000 | New Jersey EDA, Kapkowski Road Landfill Revenue Bonds, 6.50% (New Jersey Metromall Urban Renewal, Inc.)/(Original Issue Yield: 6.55%), 4/1/2018 | 1,015,228 | |
1,755,000 | New Jersey EDA, School Facilities Construction Bonds (Series 2015WW), 5.25% (New Jersey State), 6/15/2040 | 1,785,783 | |
2,500,000 | New Jersey EDA, Special Facility Revenue Bonds (Series 1999), 5.25% (United Airlines, Inc.), 9/15/2029 | 2,714,850 | |
1,125,000 | New Jersey EDA, Special Facility Revenue Bonds (Series 2000B), 5.625% (United Airlines, Inc.), 11/15/2030 | 1,258,706 | |
1,500,000 | New Jersey EDA, Special Facility Revenue Bonds (Series 2003), 5.50% (United Airlines, Inc.), 6/1/2033 | 1,647,750 | |
1,200,000 | New Jersey State Transportation Trust Fund Authority, Transportation System Bonds (Series 2011A), 6.00% (New Jersey State), 6/15/2035 | 1,323,492 | |
TOTAL | 11,795,699 | ||
New Mexico—0.9% | |||
2,060,000 | Dona Ana County, NM, MFH Revenue Bonds (Series 2001A), 7.00% (Montana Meadows Apartments), 12/1/2030 | 2,062,019 | |
1,000,000 | New Mexico State Hospital Equipment Loan Council, Hospital Improvement and Refunding Revenue Bonds (Series 2012A), 5.50% (Gerald Champion Regional Medical Center)/(Original Issue Yield: 5.70%), 7/1/2042 | 1,009,780 | |
2,000,000 | 3,4 | Winrock Town Center, NM Tax Increment Development District 1, Senior Lien Gross Receipts Tax Increment Bonds (Series 2015), 6.00% (Original Issue Yield: 6.12%), 5/1/2040 | 2,089,660 |
TOTAL | 5,161,459 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
New York—5.7% | |||
$1,495,000 | Brooklyn Arena Local Development Corp., NY, Pilot Revenue Bonds (Series 2009), 6.375% (Original Issue Yield: 6.476%), 7/15/2043 | $1,730,448 | |
1,285,000 | Hudson Yards Infrastructure Corp. NY, Hudson Yards Senior Revenue Bonds (Series 2012A), 5.75%, 2/15/2047 | 1,464,193 | |
2,000,000 | Metropolitan Transportation Authority, NY, Revenue Bonds (Series 2014D-1), 5.00% (MTA Transportation Revenue), 11/15/2039 | 2,229,260 | |
1,500,000 | Nassau County, NY IDA, Continuing Care Retirement Community Fixed Rate Revenue Bonds (Series 2014A), 6.70% (Amsterdam at Harborside), 1/1/2049 | 1,472,370 | |
541,316 | Nassau County, NY IDA, Continuing Care Retirement Community Fixed Rate Revenue Bonds (Series 2014C), 2.00% (Amsterdam at Harborside), 1/1/2049 | 30,095 | |
1,500,000 | New York City, NY IDA, Special Facility Revenue Bonds (Series 2002), 7.625% (British Airways)/(Original Issue Yield: 7.976%), 12/1/2032 | 1,519,500 | |
5,500,000 | New York City, NY IDA, Special Facility Revenue Bonds (Series 2005), 8.00% (American Airlines, Inc.)/(Original Issue Yield: 8.095%), 8/1/2028 | 5,861,735 | |
2,500,000 | New York City, NY TFA, Building Aid Revenue Bonds (Fiscal 2015 Series S-1), 5.00%, 7/15/2043 | 2,814,350 | |
2,000,000 | 3,4 | New York Liberty Development Corp., Revenue Bonds (Series 2014 Class 1), 5.00% (3 World Trade Center), 11/15/2044 | 2,002,780 |
1,000,000 | 3,4 | New York Liberty Development Corp., Revenue Bonds (Series 2014 Class 2), 5.375% (3 World Trade Center), 11/15/2040 | 1,051,040 |
1,120,000 | Newburgh, NY, UT GO Bonds (Series 2012A), 5.25% (Original Issue Yield: 5.40%), 6/15/2029 | 1,184,702 | |
1,185,000 | Newburgh, NY, UT GO Bonds (Series 2012A), 5.50%, 6/15/2030 | 1,261,421 | |
1,000,000 | Niagara Area Development Corp., NY, Solid Waste Disposal Facility Revenue Refunding Bonds (Series 2012A), 5.25% (Covanta Energy Corp.), 11/1/2042 | 1,007,040 | |
1,000,000 | Onondaga, NY Civic Development Corp., Tax Exempt Revenue Bonds (Series 2014A), 5.125% (St. Joseph's Hospital Health Center)/(Original Issue Yield: 5.375%), 7/1/2031 | 1,047,350 | |
2,500,000 | Port Authority of New York and New Jersey, Special Project Bonds (Series 8), 6.00% (JFK International Air Terminal LLC)/(Original Issue Yield: 6.15%), 12/1/2042 | 2,905,850 | |
4,700,000 | TSASC, Inc. NY, Tobacco Settlement Asset-Backed Bonds (Series 2006-1), 5.125% (Original Issue Yield: 5.35%), 6/1/2042 | 4,072,832 | |
TOTAL | 31,654,966 | ||
North Carolina—1.1% | |||
2,250,000 | North Carolina Department of Transportation, Tax-Exempt Private Activity Revenue Bonds (Series 2015), 5.00% (I-77 HOT Lanes), 6/30/2054 | 2,332,125 | |
2,335,000 | North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds (Series 2009B), 5.00% (United States Treasury PRF 1/1/2019@100),1/1/2026 | 2,635,491 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
North Carolina—continued | |||
$1,000,000 | North Carolina Medical Care Commission, Retirement Facilities First Mortgage Revenue Bonds (Series 2011A), 7.75% (Whitestone Project)/(Original Issue Yield: 8.00%), 3/1/2041 | $1,144,240 | |
TOTAL | 6,111,856 | ||
Ohio—3.7% | |||
2,000,000 | Akron, Bath & Copley, OH Joint Township Hospital District, Hospital Facilities Revenue Bonds (Series 2012), 5.00% (Akron General Health System), 1/1/2031 | 2,118,840 | |
1,000,000 | American Municipal Power-Ohio, Inc., Revenue Refunding Bonds (Series 2015A), 5.00% (American Municipal Power, Prairie State Energy Campus Project), 2/15/2039 | 1,107,410 | |
2,000,000 | Buckeye Tobacco Settlement Financing Authority, OH, Tobacco Settlement Asset-Backed Bonds (Series 2007A-2), 5.875% (Original Issue Yield: 5.95%), 6/1/2030 | 1,671,180 | |
3,655,000 | Buckeye Tobacco Settlement Financing Authority, OH, Tobacco Settlement Asset-Backed Bonds (Series A-2), 6.50%, 6/1/2047 | 3,175,354 | |
1,500,000 | Hamilton County, OH, Healthcare Revenue Bonds (Series 2011A), 6.625% (Life Enriching Communities)/(Original Issue Yield: 6.75%), 1/1/2046 | 1,700,805 | |
2,000,000 | Muskingum County, OH, Hospital Facilities Revenue Bonds (Series 2013), 5.00% (Genesis Healthcare Corp.)/(Original Issue Yield: 5.08%), 2/15/2044 | 2,072,960 | |
2,910,000 | Ohio State Air Quality Development Authority, Revenue Bonds (Series 2009A), 5.70% (FirstEnergy Solutions Corp.), 8/1/2020 | 3,168,786 | |
2,355,000 | Ohio State Higher Educational Facility Commission, Hospital Facilities Revenue Bonds (Series 2010), 5.75% (Summa Health System)/(Original Issue Yield: 5.92%), 11/15/2040 | 2,566,903 | |
1,000,000 | Ohio State Treasurer Private Activity, Revenue Bonds (Series 2015), 5.00% (Portsmouth Gateway Group LLC), 6/30/2053 | 1,046,600 | |
1,500,000 | 3,4 | Port Authority for Columbiana County, OH, Solid Waste Facility Revenue Bonds (Series 2004A), 7.25% (Apex Environmental LLC)/(Original Issue Yield: 7.30%), 8/1/2034 | 750,000 |
205,498 | 3,4 | Port Authority for Columbiana County, OH, Solid Waste Facility Revenue Bonds (Series 2012D), 10.82% (Apex Environmental LLC), 8/1/2034 | 102,749 |
750,000 | Southeastern Ohio Port Authority, OH, Hospital Facilities Revenue Refunding & Improvement Bonds (Series 2012), 6.00% (Memorial Health System, OH)/(Original Issue Yield: 6.02%), 12/1/2042 | 806,393 | |
TOTAL | 20,287,980 | ||
Oklahoma—1.6% | |||
1,000,000 | Oklahoma County, OK Finance Authority, Retirement Facility Revenue Bonds (Series 2005), 6.00% (Concordia Life Care Community)/(Original Issue Yield: 6.15%), 11/15/2038 | 1,001,610 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Oklahoma—continued | |||
$1,000,000 | Oklahoma County, OK Finance Authority, Retirement Facility Revenue Bonds (Series 2005), 6.125% (Concordia Life Care Community), 11/15/2025 | $1,003,090 | |
2,000,000 | Tulsa, OK Industrial Authority, Senior Living Community Revenue Bonds (Series 2010A), 7.25% (Montereau, Inc.)/(Original Issue Yield: 7.50%), 11/1/2045 | 2,188,540 | |
3,000,000 | Tulsa, OK Municipal Airport Trust, Revenue Refunding Bonds (Series 2000B), 5.50% (American Airlines, Inc.), 6/1/2035 | 3,199,080 | |
1,500,000 | Tulsa, OK Municipal Airport Trust, Revenue Refunding Bonds (Series 2015), 5.00% TOBs (American Airlines, Inc.), Mandatory Tender 6/1/2025 | 1,622,925 | |
TOTAL | 9,015,245 | ||
Oregon—0.2% | |||
1,000,000 | 3,4 | Cow Creek Band of Umpqua Tribe of Indians, Tax-Exempt Tax Revenue Bonds (Series 2006C), 5.625%, 10/1/2026 | 1,014,340 |
Pennsylvania—5.4% | |||
865,000 | Allegheny County, PA IDA, Environmental Improvement Revenue Refunding Bonds (Series 2005), 5.50% (United States Steel Corp.), 11/1/2016 | 892,922 | |
2,000,000 | Allegheny County, PA IDA, Environmental Improvement Revenue Refunding Bonds (Series 2009), 6.875% (United States Steel Corp.), 5/1/2030 | 2,216,500 | |
1,715,000 | Allegheny County, PA Port Authority, Special Revenue Transportation Refunding Bonds (Series 2011), 5.75%, 3/1/2029 | 2,006,979 | |
3,715,000 | Allentown, PA Neighborhood Improvement Zone Development Authority, Tax Revenue Bonds (Series 2012A), 5.00%, 5/1/2042 | 3,855,390 | |
500,000 | Butler County, PA Hospital Authority, Hospital Revenue Bonds (Series 2015A), 5.00% (Butler Health System), 7/1/2035 | 543,260 | |
1,500,000 | Chester County, PA IDA, Revenue Bonds (Series 2007A), 6.375% (Avon Grove Charter School)/(Original Issue Yield: 6.45%), 12/15/2037 | 1,574,985 | |
2,000,000 | Chester County, PA IDA, Revenue Bonds (Series 2012A), 5.375% (Collegium Charter School)/(Original Issue Yield: 5.50%), 10/15/2042 | 2,052,180 | |
1,000,000 | Clairton Municipal Authority, PA, Sewer Revenue Bonds (Series 2012B), 5.00% (Original Issue Yield: 5.05%), 12/1/2042 | 1,059,110 | |
3,000,000 | Harrisburg, PA Authority, Water Revenue Refunding Bonds (Series 2008), 5.25% (Original Issue Yield: 5.35%), 7/15/2031 | 3,042,870 | |
2,000,000 | Pennsylvania EDFA, Exempt Facilities Revenue Refunding Bonds (Series 2014), 5.50% (National Gypsum Co.), 11/1/2044 | 2,051,220 | |
1,250,000 | Pennsylvania EDFA, Tax-Exempt Private Activity Revenue Bonds (Series 2015), 5.00% (Pennsylvania Rapid Bridge Replacement), 12/31/2038 | 1,323,962 | |
1,000,000 | Philadelphia, PA Authority for Industrial Development, Revenue Bonds (Series 2010), 6.375% (Global Leadership Academy Charter School), 11/15/2040 | 1,065,310 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Pennsylvania—continued | |||
$1,205,000 | Philadelphia, PA Authority for Industrial Development, Revenue Bonds (Series 2012), 6.625% (New Foundations Charter School), 12/15/2041 | $1,321,150 | |
900,000 | Philadelphia, PA Authority for Industrial Development, Senior Living Revenue Bonds (Series 2005A), 5.625% (PresbyHomes Germantown/Morrisville), 7/1/2035 | 911,088 | |
1,665,000 | Philadelphia, PA Hospitals & Higher Education Facilities Authority, Hospital Revenue Bonds (Series 2012A), 5.625% (Temple University Health System Obligated Group)/(Original Issue Yield: 5.875%), 7/1/2042 | 1,744,104 | |
2,000,000 | Philadelphia, PA, GO Bonds (Series 2011), 6.50%, 8/1/2041 | 2,381,080 | |
1,500,000 | Reading Area Water Authority, PA, Water Revenue Bonds (Series 2011), 5.25% (Original Issue Yield: 5.27%), 12/1/2036 | 1,667,475 | |
555,000 | Washington County, PA Redevelopment Authority, Redevelopment Bonds (Series 2006A), 5.45% (Victory Centre Project-Tanger Outlet Development), 7/1/2035 | 562,271 | |
TOTAL | 30,271,856 | ||
Puerto Rico—1.4% | |||
1,470,000 | Commonwealth of Puerto Rico, Public Improvement Refunding UT GO Bonds (Series 2012A), 5.00%, 7/1/2020 | 978,329 | |
3,000,000 | Commonwealth of Puerto Rico, Public Improvement UT GO Bonds (Series 2003A), 5.00% (Original Issue Yield: 5.02%), 7/1/2033 | 1,897,560 | |
4,000,000 | Puerto Rico Electric Power Authority, Power Revenue Bonds (Series 2010XX), 5.25% (Original Issue Yield: 5.40%), 7/1/2040 | 2,329,560 | |
2,500,000 | Puerto Rico Electric Power Authority, Power Revenue Bonds (Series 2013A), 7.00% (Original Issue Yield: 7.12%), 7/1/2043 | 1,455,700 | |
2,500,000 | Puerto Rico Public Building Authority, Government Facilities Revenue Refunding Bonds (Series 2012U), 5.25% (Commonwealth of Puerto Rico GTD)/(Original Issue Yield: 5.375%), 7/1/2042 | 1,381,225 | |
TOTAL | 8,042,374 | ||
Rhode Island—1.3% | |||
4,000,000 | Rhode Island State Health and Educational Building Corp., Hospital Financing Revenue Bonds (Series 2009A), 7.00% (Lifespan Obligated Group)/(Assured Guaranty Corp. INS), 5/15/2039 | 4,674,800 | |
2,730,000 | Tobacco Settlement Financing Corp., RI, Tobacco Settlement Asset-Backed Bonds (Series 2015B), 5.00%, 6/1/2050 | 2,759,184 | |
TOTAL | 7,433,984 | ||
South Carolina—0.9% | |||
1,265,000 | Lancaster County, SC, Assessment Revenue Bonds (Series 2006), 5.45% (Sun City Carolina Lakes Improvement District), 12/1/2037 | 1,267,568 | |
700,000 | Myrtle Beach, SC, Tax Increment Bonds (Series 2006A), 5.25% (Myrtle Beach Air Force Base Redevelopment Project Area)/(Original Issue Yield: 5.27%), 10/1/2026 | 700,070 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
South Carolina—continued | |||
$750,000 | Myrtle Beach, SC, Tax Increment Bonds (Series 2006A), 5.30% (Myrtle Beach Air Force Base Redevelopment Project Area)/(Original Issue Yield: 5.325%), 10/1/2035 | $750,045 | |
2,000,000 | South Carolina Jobs-EDA, Refunding & Improvement Revenue Bonds (Series 2009), 5.75% (Palmetto Health Alliance)/(Original Issue Yield: 5.90%), 8/1/2039 | 2,159,500 | |
TOTAL | 4,877,183 | ||
South Dakota—0.2% | |||
800,000 | Educational Enhancement Funding Corp., SD, Tobacco Settlement Revenue Bonds (Series 2013B), 5.00%, 6/1/2025 | 911,808 | |
Tennessee—1.1% | |||
1,000,000 | Johnson City, TN Health & Education Facilities Board, Hospital Refunding Bonds (Series 2010A), 5.625% (Mountain States Health Alliance)/(Original Issue Yield: 5.90%), 7/1/2030 | 1,119,630 | |
1,500,000 | Johnson City, TN Health & Education Facilities Board, Hospital Revenue Bonds (Series 2010), 6.50% (Mountain States Health Alliance), 7/1/2038 | 1,723,575 | |
2,725,000 | Tennessee Energy Acquisition Corp., Gas Revenue Bonds (Series 2006A), 5.25% (Goldman Sachs Group, Inc. GTD), 9/1/2023 | 3,137,292 | |
TOTAL | 5,980,497 | ||
Texas—10.3% | |||
500,000 | Austin, TX Airport System, Airport System Revenue Bonds (Series 2014), 5.00%, 11/15/2044 | 542,170 | |
1,000,000 | Austin, TX Convention Center Enterprises, Inc., Convention Center Hotel Second Tier Revenue Refunding Bonds (Series 2006B), 5.75%, 1/1/2024 | 1,030,200 | |
1,000,000 | Austin, TX Convention Center Enterprises, Inc., Convention Center Hotel Second Tier Revenue Refunding Bonds (Series 2006B), 5.75%, 1/1/2034 | 1,031,850 | |
755,000 | Bexar County, HFDC, Revenue Bonds (Series 2010), 6.20% (Army Retirement Residence Foundation), 7/1/2045 | 848,809 | |
2,000,000 | Cass County, TX IDC, Environmental Improvement Revenue Bonds (Series 2009A), 9.50% (International Paper Co.), 3/1/2033 | 2,453,500 | |
1,000,000 | Central Texas Regional Mobility Authority, Senior Lien Revenue Bonds (Series 2011), 6.00% (Original Issue Yield: 6.13%), 1/1/2041 | 1,141,240 | |
1,000,000 | Central Texas Regional Mobility Authority, Senior Lien Revenue Bonds (Series 2011), 6.25% (Original Issue Yield: 6.30%), 1/1/2046 | 1,149,990 | |
2,000,000 | Clifton Higher Education Finance Corp., TX, 6.00% (Idea Public Schools), 8/15/2043 | 2,364,360 | |
750,000 | Clifton Higher Education Finance Corp., TX, Education Revenue Bonds (Series 2011), 5.75% (Idea Public Schools)/(Original Issue Yield: 6.00%), 8/15/2041 | 835,732 | |
500,000 | Clifton Higher Education Finance Corp., TX, Education Revenue Bonds (Series 2012), 5.00% (Idea Public Schools), 8/15/2042 | 526,395 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Texas—continued | |||
$1,000,000 | Clifton Higher Education Finance Corp., TX, Revenue Bonds (Series 2014), 5.00% (Idea Public Schools)/(PSFG GTD), 8/15/2039 | $1,120,160 | |
2,000,000 | Clifton Higher Education Finance Corp., TX, Revenue Bonds (Series 2015A), 5.00% (Uplift Education), 12/1/2050 | 2,033,820 | |
4,000,000 | Dallas-Fort Worth, TX International Airport, Joint Revenue Improvement Bonds (Series 2014B), 5.00%, 11/1/2034 | 4,337,640 | |
1,500,000 | Decatur, TX Hospital Authority, Hospital Revenue Bonds (Series 2014A), 5.25% (Wise Regional Health System)/(Original Issue Yield: 5.30%), 9/1/2044 | 1,566,915 | |
515,000 | Decatur, TX Hospital Authority, Revenue Bonds, 6.375% (Wise Regional Health System), 9/1/2042 | 594,985 | |
2,775,000 | Grand Parkway Transportation Corp., TX, Subordinate Tier Toll Revenue Bonds (Series 2013B TELA Supported), 5.25%, 10/1/2051 | 3,094,180 | |
1,000,000 | HFDC of Central Texas, Inc., Retirement Facility Revenue Bonds (Series 2006A), 5.75% (Legacy at Willow Bend), 11/1/2036 | 1,008,260 | |
1,500,000 | Houston, TX Airport System, Special Facilities Revenue & Refunding Bonds (Series 2011), 6.625% (United Airlines, Inc.)/(Original Issue Yield: 6.875%), 7/15/2038 | 1,730,445 | |
2,000,000 | Houston, TX Airport System, Special Facilities Revenue Bonds (Series 2015B-1), 5.00% (United Airlines, Inc.), 7/15/2035 | 2,070,840 | |
500,000 | Houston, TX Airport System, Special Facilities Revenue Refunding Bonds (Series 2014), 4.75% (United Airlines, Inc.)/(Original Issue Yield: 4.90%), 7/1/2024 | 536,265 | |
1,000,000 | Houston, TX Airport System, Special Facilities Revenue Refunding Bonds (Series 2014), 5.00% (United Airlines, Inc.)/(Original Issue Yield: 5.15%), 7/1/2029 | 1,054,470 | |
1,000,000 | Houston, TX Airport System, Subordinate Lien Revenue Refunding Bonds (Series 2012A), 5.00%, 7/1/2032 | 1,089,150 | |
535,000 | Houston, TX Higher Education Finance Corp., Education Revenue Bonds (Series 2011A), 6.875% (Cosmos Foundation, Inc.)/(United States Treasury PRF 5/15/2021@100), 5/15/2041 | 686,603 | |
2,000,000 | Kerrville, TX HFDC, Hospital Revenue Bonds, 5.375% (Sid Peterson Memorial Hospital), 8/15/2035 | 2,015,300 | |
2,000,000 | Lavernia, TX Higher Education Finance Corp., Education Revenue Bonds (Series 2015A), 5.50% (Meridian World School), 8/15/2045 | 1,997,020 | |
2,000,000 | Lufkin, TX HFDC, Revenue Refunding and Improvement Bonds (Series 2009), 6.25% (Memorial Health System of East Texas)/(United States Treasury PRF 2/15/2019@100)/(Original Issue Yield: 6.50%), 2/15/2037 | 2,349,040 | |
1,000,000 | Matagorda County, TX Navigation District No. 1, PCR Refunding Bonds (Series 2001A), 6.30% (AEP Texas Central Co.), 11/1/2029 | 1,134,100 | |
1,500,000 | North Texas Tollway Authority, Special Projects System Revenue Bonds (Series 2011), 6.00% (North Texas Toll Authority Special Projects System), 9/1/2041 | 1,805,655 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Texas—continued | |||
$2,000,000 | North Texas Tollway Authority, System Second Tier Revenue Refunding Bonds (Series 2014B), 5.00%, 1/1/2031 | $2,204,480 | |
2,000,000 | Red River, TX HFDC, Retirement Facility Revenue Bonds (Series 2014A), 8.00% (MRC The Crossings), 11/15/2049 | 2,360,320 | |
1,000,000 | San Juan Higher Education Finance Authority, TX, Education Revenue Bonds (Series 2010A), 6.70% (Idea Public Schools), 8/15/2040 | 1,163,180 | |
1,500,000 | Tarrant County, TX Cultural Education Facilities Finance Corp., Retirement Facility Revenue Bonds (Series 2015A Fixed Rate Bonds), 5.50% (Buckingham Senior Living Community), 11/15/2045 | 1,503,345 | |
2,000,000 | Texas State Public Finance Authority Charter School Finance Corp., Education Revenue Bonds (Series 2010A), 6.20% (Cosmos Foundation, Inc.)/(United States Treasury PRF 2/15/2020@100), 2/15/2040 | 2,416,880 | |
2,680,000 | Texas State Transportation Commission, Second Tier Revenue Refunding Bonds (Series 2015-C), 5.00% (Central Texas Turnpike System), 8/15/2042 | 2,877,918 | |
2,500,000 | Travis County, TX HFDC, First Mortgage Revenue Refunding Bonds (Series 2012A), 7.125% (Longhorn Village)/(Original Issue Yield: 7.40%), 1/1/2046 | 2,689,500 | |
TOTAL | 57,364,717 | ||
Utah—0.7% | |||
800,000 | 3,4 | Spanish Fork City, UT, Charter School Revenue Bonds (Series 2006), 5.55% (American Leadership Academy), 11/15/2026 | 807,072 |
1,750,000 | 3,4 | Spanish Fork City, UT, Charter School Revenue Bonds (Series 2006), 5.70% (American Leadership Academy), 11/15/2036 | 1,758,312 |
1,315,000 | 3,4 | Utah State Charter School Finance Authority, Charter School Revenue Bonds (Series 2007A), 6.00% (Channing Hall), 7/15/2037 | 1,325,047 |
TOTAL | 3,890,431 | ||
Virginia—1.6% | |||
1,500,000 | Chesterfield County, VA EDA, PCR Refunding Bonds (Series 2009A), 5.00% (Virginia Electric & Power Co.), 5/1/2023 | 1,689,840 | |
1,380,000 | Mosaic District CDA, VA, Revenue Bonds (Series 2011A), 6.875% (Original Issue Yield: 6.93%), 3/1/2036 | 1,568,674 | |
1,500,000 | Peninsula Town Center CDA, VA, SO Bonds (Series 2007), 6.35%, 9/1/2028 | 1,587,255 | |
1,000,000 | Peninsula Town Center CDA, VA, SO Bonds (Series 2007), 6.45%, 9/1/2037 | 1,056,110 | |
4,250,000 | Tobacco Settlement Financing Corp., VA, Tobacco Settlement Asset-Backed Bonds (Series 2007B-1), 5.00% (Original Issue Yield: 5.12%), 6/1/2047 | 2,988,897 | |
TOTAL | 8,890,776 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Washington—1.7% | |||
$1,000,000 | Port of Seattle, WA IDC, Special Facilities Revenue Refunding Bonds (Series 2012), 5.00% (Delta Air Lines, Inc.)/(Original Issue Yield: 5.31%), 4/1/2030 | $1,040,910 | |
1,135,000 | Tacoma, WA Consolidated Local Improvement District No. 65, Bonds, 5.75%, 4/1/2043 | 1,140,562 | |
925,000 | Tobacco Settlement Authority, WA, Tobacco Settlement Revenue Refunding Bonds (Series 2013), 5.25%, 6/1/2031 | 1,011,737 | |
1,500,000 | 3,4 | Washington State Health Care Facilities Authority, Revenue Bonds (Series 2007A), 6.25% (Virginia Mason Medical Center)/(Original Issue Yield: 6.375%), 8/15/2042 | 1,620,435 |
2,500,000 | 3,4 | Washington State Housing Finance Commission, Nonprofit Housing Revenue & Revenue Refunding Bonds (Series 2014A), 7.50% (Rockwood Retirement Communities), 1/1/2049 | 2,767,425 |
1,000,000 | 3,4 | Washington State Housing Finance Commission, Nonprofit Housing Revenue Bonds (Series 2015A), 7.00% (Heron's Key Senior Living), 7/1/2045 | 1,026,290 |
1,000,000 | 3,4 | Washington State Housing Finance Commission, Nonprofit Housing Revenue Bonds (Series 2015A), 7.00% (Heron's Key Senior Living)/(Original Issue Yield: 7.05%), 7/1/2050 | 1,011,900 |
TOTAL | 9,619,259 | ||
West Virginia—0.5% | |||
640,000 | Ohio County, WV County Commission, Special District Excise Tax Revenue Refunding & Improvement Bonds (Series 2006A), 5.625% (Fort Henry Economic Opportunity Development District), 3/1/2036 | 646,586 | |
1,000,000 | Ohio County, WV County Commission, Tax Increment Revenue Bonds (Series 2005A), 5.625% (Fort Henry Centre Tax Increment Financing District No. 1), 6/1/2034 | 1,002,260 | |
1,000,000 | Ohio County, WV County Commission, Tax Increment Revenue Bonds (Series 2007A), 5.85% (Fort Henry Centre Tax Increment Financing District No. 1), 6/1/2034 | 1,023,750 | |
TOTAL | 2,672,596 | ||
Wisconsin—1.3% | |||
5,335,000 | Wisconsin State General Fund Appropriation, Revenue Bonds (Series 2009A), 5.75% (Wisconsin State)/(Original Issue Yield: 5.95%), 5/1/2033 | 6,123,780 | |
800,000 | Wisconsin State HEFA, Revenue Refunding Bonds (Series 2015), 5.00% (ProHealth Care, Inc.), 8/15/2039 | 869,752 | |
TOTAL | 6,993,532 | ||
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $523,752,232) | 545,613,204 | ||
CORPORATE BONDS—0.0% | |||
Multi State—0.0% | |||
4,000,000 | 1,3 | Non-Profit Preferred Funding Trust I, Partnership, 9/15/2037 (IDENTIFIED COST $3,989,000) | 249,240 |
Principal Amount | Value | ||
SHORT-TERM MUNICIPALS—0.2%6 | |||
New York—0.2% | |||
$1,000,000 | New York City, NY, 2015 Series F (Subseries F-5) Daily VRDNs (Barclays Bank PLC LIQ), 0.01%, 9/1/2015 | $1,000,000 | |
Ohio—0.0% | |||
200,000 | Ohio State Higher Educational Facility Commission, (Series 2008 B-4) Daily VRDNs (Cleveland Clinic), (Barclays Bank PLC LIQ), 0.01%, 9/1/2015 | 200,000 | |
TOTAL SHORT-TERM MUNICIPALS (AT AMORTIZED COST) | 1,200,000 | ||
TOTAL INVESTMENTS—98.3% (IDENTIFIED COST $528,982,547)7 | 547,062,444 | ||
OTHER ASSETS AND LIABILITIES - NET—1.7%8 | 9,295,450 | ||
TOTAL NET ASSETS—100% | $556,357,894 |
1 | Non-income-producing security. |
2 | Security in default. |
3 | Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At August 31, 2015, these restricted securities amounted to $33,831,893, which represented 6.1% of total net assets. |
4 | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Trustees (the “Trustees”). At August 31, 2015, these liquid restricted securities amounted to $33,582,653, which represented 6.0% of total net assets. |
5 | Zero coupon bond. |
6 | Current rate and next reset date shown for Variable Rate Demand Notes. |
7 | The cost of investments for federal tax purposes amounts to $529,881,005. |
8 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
AGM | —Assured Guaranty Municipal Corp. |
AMBAC | —American Municipal Bond Assurance Corporation |
CDA | —Community Development Authority |
COL | —Collateralized |
COPs | —Certificates of Participation |
EDA | —Economic Development Authority |
EDC | —Economic Development Corporation |
EDFA | —Economic Development Finance Authority |
GNMA | —Government National Mortgage Association |
GO | —General Obligation |
GTD | —Guaranteed |
HEFA | —Health and Education Facilities Authority |
HFDC | —Health Facility Development Corporation |
IDA | —Industrial Development Authority |
IDB | —Industrial Development Bond |
IDC | —Industrial Development Corporation |
IDRBs | —Industrial Development Revenue Bonds |
INS | —Insured |
LIQ | —Liquidity Agreement |
LO | —Limited Obligation |
LT | —Limited Tax |
MFH | —Multi-Family Housing |
PCFA | —Pollution Control Finance Authority |
PCR | —Pollution Control Revenue |
PCRBs | —Pollution Control Revenue Bonds |
PRF | —Pre-refunded |
PSFG | —Public School Fund Guarantee |
Q-SBLF | —Qualified School Bond Loan Fund |
SFM | —Single Family Mortgage |
SID | —Special Improvement District |
SO | —Special Obligation |
TELA | —Toll Equity Loan Agreement |
TFA | —Transitional Finance Authority |
TOBs | —Tender Option Bonds |
USDT | —Unified School District |
UT | —Unlimited Tax |
VRDNs | —Variable Rate Demand Notes |
Year Ended August 31 | 2015 | 2014 | 2013 | 2012 | 2011 |
Net Asset Value, Beginning of Period | $8.85 | $8.11 | $8.95 | $8.21 | $8.59 |
Income From Investment Operations: | |||||
Net investment income | 0.39 | 0.41 | 0.40 | 0.42 | 0.45 |
Net realized and unrealized gain (loss) on investments and futures contracts | 0.01 | 0.74 | (0.84) | 0.74 | (0.36) |
TOTAL FROM INVESTMENT OPERATIONS | 0.40 | 1.15 | (0.44) | 1.16 | 0.09 |
Less Distributions: | |||||
Distributions from net investment income | (0.39) | (0.41) | (0.40) | (0.42) | (0.47) |
Net Asset Value, End of Period | $8.86 | $8.85 | $8.11 | $8.95 | $8.21 |
Total Return1 | 4.63% | 14.54% | (5.17)% | 14.58% | 1.29% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.89% | 0.89% | 0.89% | 0.89% | 0.85% |
Net investment income | 4.42% | 4.84% | 4.53% | 4.88% | 5.57% |
Expense waiver/reimbursement2 | 0.15% | 0.17% | 0.15% | 0.15% | 0.22% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $230,664 | $224,298 | $215,101 | $239,911 | $190,003 |
Portfolio turnover | 12% | 19% | 17% | 14% | 28% |
1 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
2 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
Year Ended August 31 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Net Asset Value, Beginning of Period | $8.84 | $8.11 | $8.95 | $8.21 | $8.59 | |
Income From Investment Operations: | ||||||
Net investment income | 0.35 | 0.36 | 0.36 | 0.36 | 0.41 | |
Net realized and unrealized gain (loss) on investments and futures contracts | (0.01) | 0.71 | (0.86) | 0.74 | (0.38) | |
TOTAL FROM INVESTMENT OPERATIONS | 0.34 | 1.07 | (0.50) | 1.10 | 0.03 | |
Less Distributions: | ||||||
Distributions from net investment income | (0.33) | (0.34) | (0.34) | (0.36) | (0.41) | |
Net Asset Value, End of Period | $8.85 | $8.84 | $8.11 | $8.95 | $8.21 | |
Total Return1 | 3.85% | 13.56% | (5.88)% | 13.72% | 0.55% | |
Ratios to Average Net Assets: | ||||||
Net expenses | 1.64% | 1.64% | 1.64% | 1.64% | 1.60% | |
Net investment income | 3.66% | 4.09% | 3.76% | 4.15% | 4.82% | |
Expense waiver/reimbursement2 | 0.15% | 0.17% | 0.15% | 0.15% | 0.22% | |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $11,528 | $13,424 | $15,620 | $22,783 | $24,122 | |
Portfolio turnover | 12% | 19% | 17% | 14% | 28% |
1 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
2 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
Year Ended August 31 | 2015 | 2014 | 2013 | 2012 | 2011 | |
Net Asset Value, Beginning of Period | $8.85 | $8.11 | $8.95 | $8.21 | $8.59 | |
Income From Investment Operations: | ||||||
Net investment income | 0.33 | 0.35 | 0.34 | 0.36 | 0.39 | |
Net realized and unrealized gain (loss) on investments and futures contracts | (0.00)1 | 0.74 | (0.84) | 0.74 | (0.36) | |
TOTAL FROM INVESTMENT OPERATIONS | 0.33 | 1.09 | (0.50) | 1.10 | 0.03 | |
Less Distributions: | ||||||
Distributions from net investment income | (0.33) | (0.35) | (0.34) | (0.36) | (0.41) | |
Net Asset Value, End of Period | $8.85 | $8.85 | $8.11 | $8.95 | $8.21 | |
Total Return2 | 3.73% | 13.69% | (5.88)% | 13.72% | 0.54% | |
Ratios to Average Net Assets: | ||||||
Net expenses | 1.64% | 1.64% | 1.64% | 1.64% | 1.60% | |
Net investment income | 3.67% | 4.09% | 3.78% | 4.13% | 4.82% | |
Expense waiver/reimbursement3 | 0.15% | 0.17% | 0.15% | 0.15% | 0.22% | |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $61,093 | $56,208 | $53,002 | $61,295 | $46,925 | |
Portfolio turnover | 12% | 19% | 17% | 14% | 28% |
1 | Represents less than $0.01. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
Year Ended August 31 | 2015 | 2014 | 2013 | 2012 | 2011 |
Net Asset Value, Beginning of Period | $8.85 | $8.11 | $8.95 | $8.21 | $8.59 |
Income From Investment Operations: | |||||
Net investment income | 0.39 | 0.41 | 0.40 | 0.42 | 0.45 |
Net realized and unrealized gain (loss) on investments and futures contracts | 0.01 | 0.74 | (0.84) | 0.74 | (0.36) |
TOTAL FROM INVESTMENT OPERATIONS | 0.40 | 1.15 | (0.44) | 1.16 | 0.09 |
Less Distributions: | |||||
Distributions from net investment income | (0.39) | (0.41) | (0.40) | (0.42) | (0.47) |
Net Asset Value, End of Period | $8.86 | $8.85 | $8.11 | $8.95 | $8.21 |
Total Return1 | 4.63% | 14.54% | (5.17)% | 14.58% | 1.29% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.89% | 0.89% | 0.89% | 0.89% | 0.85% |
Net investment income | 4.41% | 4.84% | 4.53% | 4.89% | 5.57% |
Expense waiver/reimbursement2 | 0.15% | 0.17% | 0.15% | 0.15% | 0.22% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $189,216 | $187,704 | $178,932 | $203,396 | $177,290 |
Portfolio turnover | 12% | 19% | 17% | 14% | 28% |
1 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
2 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
Year Ended August 31, | Period Ended 8/31/20131 | ||
2015 | 2014 | ||
Net Asset Value, Beginning of Period | $8.84 | $8.11 | $8.88 |
Income From Investment Operations: | |||
Net investment income | 0.42 | 0.42 | 0.09 |
Net realized and unrealized gain (loss) on investments and futures contracts | 0.01 | 0.74 | (0.78) |
TOTAL FROM INVESTMENT OPERATIONS | 0.43 | 1.16 | (0.69) |
Less Distributions: | |||
Distributions from net investment income | (0.42) | (0.43) | (0.08) |
Net Asset Value, End of Period | $8.85 | $8.84 | $8.11 |
Total Return2 | 4.90% | 14.71% | (7.83)% |
Ratios to Average Net Assets: | |||
Net expenses | 0.64% | 0.64% | 0.64%3 |
Net investment income | 4.67% | 5.01% | 6.05%3 |
Expense waiver/reimbursement4 | 0.15% | 0.16% | 0.21%3 |
Supplemental Data: | |||
Net assets, end of period (000 omitted) | $63,857 | $48,577 | $2,426 |
Portfolio turnover | 12% | 19% | 17%5 |
1 | Reflects operations for the period from June 11, 2013 (date of initial investment) to August 31, 2013. |
2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
3 | Computed on an annualized basis. |
4 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
5 | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended August 31, 2013. |
Assets: | ||
Total investment in securities, at value (identified cost $528,982,547) | $547,062,444 | |
Income receivable | 7,684,121 | |
Receivable for investments sold | 2,712,413 | |
Receivable for shares sold | 506,746 | |
TOTAL ASSETS | 557,965,724 | |
Liabilities: | ||
Payable for investments purchased | $591,685 | |
Payable for shares redeemed | 358,066 | |
Bank overdraft | 341,789 | |
Payable for other service fees (Notes 2 and 5) | 102,003 | |
Payable to adviser (Note 5) | 57,109 | |
Payable for distribution services fee (Note 5) | 45,963 | |
Payable for transfer agent fee | 39,098 | |
Payable for administrative fee (Note 5) | 7,156 | |
Accrued expenses (Note 5) | 64,961 | |
TOTAL LIABILITIES | 1,607,830 | |
Net assets for 62,814,341 shares outstanding | $556,357,894 | |
Net Assets Consists of: | ||
Paid-in capital | $612,777,972 | |
Net unrealized appreciation of investments | 18,079,897 | |
Accumulated net realized loss on investments and futures contracts | (74,964,925) | |
Undistributed net investment income | 464,950 | |
TOTAL NET ASSETS | $556,357,894 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | ||
Class A Shares: | ||
Net asset value per share ($230,663,671 ÷ 26,036,590 shares outstanding), no par value, unlimited shares authorized | $8.86 | |
Offering price per share (100/95.50 of $8.86) | $9.28 | |
Redemption proceeds per share | $8.86 | |
Class B Shares: | ||
Net asset value per share ($11,527,700 ÷ 1,302,253 shares outstanding), no par value, unlimited shares authorized | $8.85 | |
Offering price per share | $8.85 | |
Redemption proceeds per share (94.50/100 of $8.85) | $8.36 | |
Class C Shares: | ||
Net asset value per share ($61,092,860 ÷ 6,900,504 shares outstanding), no par value, unlimited shares authorized | $8.85 | |
Offering price per share | $8.85 | |
Redemption proceeds per share (99.00/100 of $8.85) | $8.76 | |
Class F Shares: | ||
Net asset value per share ($189,216,326 ÷ 21,359,419 shares outstanding), no par value, unlimited shares authorized | $8.86 | |
Offering price per share (100/99.00 of $8.86) | $8.95 | |
Redemption proceeds per share (99.00/100 of $8.86) | $8.77 | |
Institutional Shares: | ||
Net asset value per share ($63,857,337 ÷ 7,215,575 shares outstanding), no par value, unlimited shares authorized | $8.85 | |
Offering price per share | $8.85 | |
Redemption proceeds per share | $8.85 |
Investment Income: | ||
Interest | $29,229,039 | |
Expenses: | ||
Investment adviser fee (Note 5) | $3,302,283 | |
Administrative fee (Note 5) | 430,718 | |
Custodian fees | 25,156 | |
Transfer agent fees | 305,745 | |
Directors'/Trustees' fees (Note 5) | 4,248 | |
Auditing fees | 26,650 | |
Legal fees | 9,283 | |
Distribution services fee (Note 5) | 538,384 | |
Other service fees (Notes 2 and 5) | 1,231,747 | |
Portfolio accounting fees | 129,492 | |
Share registration costs | 76,430 | |
Printing and postage | 33,761 | |
Miscellaneous (Note 5) | 12,150 | |
TOTAL EXPENSES | 6,126,047 | |
Waiver of investment adviser fee (Note 5) | (806,511) | |
Net expenses | 5,319,536 | |
Net investment income | 23,909,503 | |
Realized and Unrealized Gain (Loss) on Investments: | ||
Net realized loss on investments | (2,029,677) | |
Net change in unrealized appreciation of investments | 2,167,734 | |
Net realized and unrealized gain on investments | 138,057 | |
Change in net assets resulting from operations | $24,047,560 |
Year Ended August 31 | 2015 | 2014 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $23,909,503 | $22,555,604 |
Net realized loss on investments and futures contracts | (2,029,677) | (4,945,035) |
Net change in unrealized appreciation/depreciation of investments and futures contracts | 2,167,734 | 46,128,331 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 24,047,560 | 63,738,900 |
Distributions to Shareholders: | ||
Distributions from net investment income | ||
Class A Shares | (10,129,493) | (10,586,062) |
Class B Shares | (460,151) | (568,676) |
Class C Shares | (2,164,489) | (2,119,921) |
Class F Shares | (8,439,946) | (8,681,990) |
Institutional Shares | (2,666,699) | (456,285) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (23,860,778) | (22,412,934) |
Share Transactions: | ||
Proceeds from sale of shares | 124,495,318 | 139,670,680 |
Net asset value of shares issued to shareholders in payment of distributions declared | 21,099,459 | 19,624,185 |
Cost of shares redeemed | (119,635,036) | (135,491,803) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 25,959,741 | 23,803,062 |
Change in net assets | 26,146,523 | 65,129,028 |
Net Assets: | ||
Beginning of period | 530,211,371 | 465,082,343 |
End of period (including undistributed net investment income of $464,950 and $524,683, respectively) | $556,357,894 | $530,211,371 |
■ | Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium) unless the issuer's creditworthiness is impaired or other factors indicate that amortized cost is not an accurate estimate of the investment's fair value, in which case it would be valued in the same manner as a longer-term security. |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | 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. |
Other Service Fees Incurred | |
Class A Shares | $574,016 |
Class B Shares | 31,318 |
Class C Shares | 148,163 |
Class F Shares | 478,250 |
TOTAL | $1,231,747 |
Security | Acquisition Date | Cost | Market Value |
Non-Profit Preferred Funding Trust I, Partnership, 9/15/2037 | 10/26/2006-2/16/2007 | $3,989,000 | $249,240 |
Year Ended August 31 | 2015 | 2014 | ||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 5,465,390 | $48,881,128 | 7,812,836 | $66,017,760 |
Shares issued to shareholders in payment of distributions declared | 1,025,803 | 9,126,405 | 1,111,463 | 9,346,914 |
Shares redeemed | (5,793,518) | (51,607,563) | (10,095,392) | (85,121,348) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 697,675 | $6,399,970 | (1,171,093) | $(9,756,674) |
Year Ended August 31 | 2015 | 2014 | ||
Class B Shares: | Shares | Amount | Shares | Amount |
Shares sold | 98,407 | $878,652 | 156,420 | $1,333,126 |
Shares issued to shareholders in payment of distributions declared | 46,495 | 413,612 | 61,484 | 515,795 |
Shares redeemed | (360,317) | (3,215,403) | (626,713) | (5,247,689) |
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS | (215,415) | $(1,923,139) | (408,809) | $(3,398,768) |
Year Ended August 31 | 2015 | 2014 | ||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,367,829 | $12,189,881 | 1,177,559 | $9,804,747 |
Shares issued to shareholders in payment of distributions declared | 211,990 | 1,886,115 | 224,734 | 1,888,324 |
Shares redeemed | (1,033,549) | (9,202,470) | (1,584,392) | (12,967,370) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | 546,270 | $4,873,526 | (182,099) | $(1,274,299) |
Year Ended August 31 | 2015 | 2014 | ||
Class F Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,719,200 | $15,343,244 | 1,833,090 | $15,356,390 |
Shares issued to shareholders in payment of distributions declared | 830,650 | 7,390,024 | 890,367 | 7,483,043 |
Shares redeemed | (2,397,300) | (21,337,996) | (3,570,676) | (29,720,893) |
NET CHANGE RESULTING FROM CLASS F SHARE TRANSACTIONS | 152,550 | $1,395,272 | (847,219) | $(6,881,460) |
Year Ended August 31 | 2015 | 2014 | ||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 5,302,659 | $47,202,413 | 5,435,795 | $47,158,657 |
Shares issued to shareholders in payment of distributions declared | 256,933 | 2,283,303 | 45,574 | 390,109 |
Shares redeemed | (3,836,276) | (34,271,604) | (288,293) | (2,434,503) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 1,723,316 | $15,214,112 | 5,193,076 | $45,114,263 |
NET CHANGE RESULTING FROM TOTAL FUND SHARES TRANSACTIONS | 2,904,396 | $25,959,741 | 2,583,856 | $23,803,062 |
Increase (Decrease) | |
Undistributed Net Investment Income (Loss) | Accumulated Net Realized Gain (Loss) |
$(108,458) | $108,458 |
2015 | 2014 | |
Tax-exempt income | $23,815,805 | $22,375,104 |
Ordinary income | $44,973 | $37,830 |
Undistributed tax-exempt income | $748,241 |
Undistributed ordinary income | $374 |
Net unrealized appreciation | $16,896,693 |
Capital loss carryforward | $(74,065,386) |
Expiration Year | Short-Term | Long-Term | Total |
No expiration | $5,565,473 | $25,872,146 | $31,437,619 |
2017 | $20,198,309 | NA | $20,198,309 |
2018 | $19,483,511 | NA | $19,483,511 |
2019 | $2,945,947 | NA | $2,945,947 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.150% | on the first $5 billion |
0.125% | on the next $5 billion |
0.100% | on the next $10 billion |
0.075% | on assets in excess of $20 billion |
Share Class Name | Percentage of Average Daily Net Assets of Class |
Class A Shares | 0.05% |
Class B Shares | 0.75% |
Class C Shares | 0.75% |
Class F Shares | 0.05% |
Distribution Services Fee Incurred | |
Class B Shares | $93,954 |
Class C Shares | 444,430 |
TOTAL | $538,384 |
Purchases | $105,782,376 |
Sales | $63,629,392 |
October 26, 2015
Beginning Account Value 3/1/2015 | Ending Account Value 8/31/2015 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,006.50 | $4.50 |
Class B Shares | $1,000 | $1,002.80 | $8.28 |
Class C Shares | $1,000 | $1,002.70 | $8.28 |
Class F Shares | $1,000 | $1,006.50 | $4.50 |
Institutional Shares | $1,000 | $1,007.80 | $3.24 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,020.72 | $4.53 |
Class B Shares | $1,000 | $1,016.94 | $8.34 |
Class C Shares | $1,000 | $1,016.94 | $8.34 |
Class F Shares | $1,000 | $1,020.72 | $4.53 |
Institutional Shares | $1,000 | $1,021.98 | $3.26 |
1 | Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 0.89% |
Class B Shares | 1.64% |
Class C Shares | 1.64% |
Class F Shares | 0.89% |
Institutional Shares | 0.64% |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John F. Donahue* Birth Date: July 28, 1924 Trustee Indefinite Term Began serving: August 1990 | Principal Occupations: Director or Trustee of the Federated Fund Family; Chairman and Director, Federated Investors, Inc.; Chairman of the Federated Fund Family's Executive Committee. Previous Positions: Chairman of the Federated Fund Family; Trustee, Federated Investment Management Company; Chairman and Director, Federated Investment Counseling. |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: August 1990 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Family; Director or Trustee of the Funds in the Federated Fund Family; President, Chief Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd. |
* | Family relationships and reasons for “interested” status: John F. Donahue is the father of J. Christopher Donahue; both are “interested” due to their beneficial ownership of shares of Federated Investors, Inc. and the positions they hold with Federated and its subsidiaries. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; Chairman and CEO, The Collins Group, Inc. (a private equity firm). Other Directorships Held: Director, Chair of the Compensation Committee, Audit Committee member, KLX Corp. Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director, FleetBoston Financial Corp.; Director and Audit Committee Member, Bank of America Corp. and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee of the Federated Fund Family; Retired. Other Directorships Held: Director, Chair of the Audit Committee, Governance Committee, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP. Mr. Hough is an Executive Committee member of the United States Golf Association, he serves on the President's Cabinet and Business School Board of Visitors for the University of Alabama and is on the Business School Board of Visitors for Wake Forest University. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Fund Family; Adjunct Professor of Law, Duquesne University School of Law. Other Directorships Held: Director, CONSOL Energy Inc. Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously served as: Associate General Secretary, Diocese of Pittsburgh; Professor of Law, Duquesne University School of Law and was a member of the Superior Court of Pennsylvania. Judge Lally-Green also holds the positions of: Member, Pennsylvania State Board of Education; Director, Saint Vincent College; Director and Chair, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Our Campaign for the Church Alive!, Inc.; Director, Pennsylvania Bar Institute; and Director, Cardinal Wuerl North Catholic High School, Inc. Judge Lally-Green has held the positions of: Director, Auberle; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; and Director, Catholic High Schools of the Diocese of Pittsburgh, Inc. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Peter E. Madden Birth Date: March 16, 1942 Trustee Indefinite Term Began serving: August 1991 | Principal Occupation: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Fund Family; Retired. Other Directorships Held: None. Qualifications: Mr. Madden has served in several business management, mutual fund services and directorship positions throughout his career. Mr. Madden previously served as President, Chief Operating Officer and Director, State Street Bank and Trust Company (custodian bank) and State Street Corporation (financial services). He was Director, VISA USA and VISA International and Chairman and Director, Massachusetts Bankers Association. Mr. Madden served as Director, Depository Trust Corporation and Director, The Boston Stock Exchange. Mr. Madden also served as a Representative to the Commonwealth of Massachusetts General Court. |
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Trustee Indefinite Term Began serving: January 1999 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Mansfield has served in several banking, business management and educational roles and directorship positions throughout his career. Mr. Mansfield previously served as Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly, Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University; Executive Vice President DVC Group, Inc. (marketing, communications and technology). |
Thomas M. O'Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: October 2006 | Principal Occupations: Director or Trustee, Vice Chair of the Audit Committee of the Federated Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O'Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O'Neill serves as Director, Medicines for Humanity and Director, The Golisano Children's Museum of Naples, Florida. Mr. O'Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey serves as Board Member, Epilepsy Foundation of Western Pennsylvania and Board member, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: June 1999 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
John W. McGonigle Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Officer since: August 1990 | Principal Occupations: Executive Vice President and Secretary of the Federated Fund Family; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc. Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp. and Edgewood Services, Inc.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Investors, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Richard B. Fisher Birth Date: May 17, 1923 Vice Chairman Officer since: August 2002 | Principal Occupations: Vice Chairman or Vice President of some of the Funds in the Federated Fund Family; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp. Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Family; Executive Vice President, Federated Investors, Inc.; Director and Chief Executive Officer, Federated Securities Corp. |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER Officer since: January 2005 | Principal Occupations: Mr. Germain is Chief Legal Officer of the Federated Fund Family. He is General Counsel and Vice President, Federated Investors, Inc.; President, Federated Administrative Services and Federated Administrative Services, Inc.; Vice President, Federated Securities Corp.; Secretary, Federated Private Asset Management, Inc.; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Fund Family; Vice President and Chief Compliance Officer of Federated Investors, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Investors, Inc. Prior to joining Federated, Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Robert J. Ostrowski Birth Date: April 26, 1963 Chief Investment Officer Officer since: May 2004 | Principal Occupations: Robert J. Ostrowski joined Federated in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated's taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund's Adviser in 2009 and served as a Senior Vice President of the Fund's Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University. |
Lee R. Cunningham II Birth Date: August 26, 1964 Vice President Officer since: June 2012 Portfolio Manager since: April 2009 | Principal Occupations: Lee R. Cunningham II has been the Fund's Portfolio Manager since April 2009. He is Vice President of the Trust with respect to the Fund. He joined Federated in 1995 as an Investment Analyst and has been a Portfolio Manager since 1998. He was named an Assistant Vice President of the Fund's Adviser in January 1998 and became a Vice President of the Fund's Adviser in July 2000. From 1986 through 1994, Mr. Cunningham was a Project Engineer with Pennsylvania Power and Light Company. He received his M.B.A. with concentrations in Finance and Operations from the University of Pittsburgh. |
R. J. Gallo Birth Date: June 10, 1969 Vice President Officer since: June 2012 Portfolio Manager since: April 2010 | Principal Occupations: R.J. Gallo, Senior Portfolio Manager and Head of the Municipal Bond Investment Group has been the Fund's Portfolio Manager since April 2010. He is Vice President of the Trust with respect to the Fund. Mr. Gallo joined Federated in 2000 as an Investment Analyst. He became a Senior Vice President of the Fund's Adviser in 2011. From 2005 to 2010 Mr. Gallo served as Vice President and from January 2002 through 2004 and as an Assistant Vice President of the Fund's Adviser. He has been a Portfolio Manager since December 2002. From 1996 to 2000, Mr. Gallo was a Financial Analyst and Trader at the Federal Reserve Bank of New York. Mr. Gallo has received the Chartered Financial Analyst designation and a Master's in Public Affairs with a concentration in Economics and Public Policy from Princeton University. |
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 313923856
CUSIP 313923849
CUSIP 313923831
CUSIP 313923815
2015 ©Federated Investors, Inc.
Share Class | Ticker |
A | MMIFX |
1 | Income may be subject to the federal alternative minimum tax for individuals or corporations (AMT). |
2 | Please see the footnotes to the line graph under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the Intermediate Index. |
3 | Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” for the definition of, and more information about, the MMSSIFA. |
4 | Duration is a measure of a security's price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities with shorter durations. For purposes of this Management Discussion of Fund Performance, duration is determined using a third-party analytical system. |
5 | Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices. |
6 | Credit ratings pertain only to the securities in the portfolio and do not protect the Fund shares against market risk. |
7 | Investment-grade securities and noninvestment-grade securities may either be: (a) rated by a nationally recognized statistical ratings organization or rating agency; or (b) unrated securities that the Fund's investment adviser (“Adviser”) believes are of comparable quality. The rating agencies that provided the ratings for rated securities include Standard & Poor's, Moody's Investor Services, Inc. and Fitch Rating Service. When ratings vary, the highest rating is used. Credit ratings of “AA” or better are considered to be high credit quality; credit ratings of “A” are considered high or medium/good quality; and credit ratings of “BBB” are considered to be medium/good credit quality, and the lowest category of investment-grade securities; credit ratings of “BB” and below are lower-rated, noninvestment-grade securities or junk bonds; and credit ratings of “CCC” or below are noninvestment-grade securities that have high default risk. Any credit quality breakdown does not give effect to the impact of any credit derivative investments made by the Fund. Credit ratings are an indication of the risk that a security will default. They do not protect a security from credit risk. Lower rated bonds typically offer higher yields to help compensate investors for the increased risk associated with them. Among these risks are lower creditworthiness, greater price volatility, more risk to principal and income than with higher rated securities and increased possibilities of default. |
Federated Michigan Intermediate Municipal Trust - | Class A Shares | NA | Intermediate Index | MMSSIFA |
F | NA | I | I | |
8/31/2005 | 9,700 | 10,000 | 10,000 | |
8/31/2006 | 9,926 | 10,287 | 10,224 | |
8/31/2007 | 10,170 | 10,607 | 10,370 | |
8/31/2008 | 10,596 | 11,199 | 10,674 | |
8/31/2009 | 10,987 | 11,932 | 11,154 | |
8/31/2010 | 11,893 | 13,110 | 12,060 | |
8/31/2011 | 12,219 | 13,568 | 12,290 | |
8/31/2012 | 13,088 | 14,532 | 13,115 | |
8/31/2013 | 12,709 | 14,204 | 12,563 | |
8/31/2014 | 13,675 | 15,423 | 13,534 | |
8/31/2015 | 13,933 | 15,722 | 13,761 |
■ | Total returns shown include the maximum sales charge of 3.00% ($10,000 investment minus $300 sales charge = $9,700). |
1 Year | 5 Years | 10 Years | |
Class A Shares | -1.15% | 2.58% | 3.37% |
Intermediate Index | 1.94% | 3.70% | 4.63% |
MMSSIFA | 1.74% | 2.80% | 3.44% |
1 | Represents a hypothetical investment of $10,000 in the Fund after deducting the maximum sales charge of 3.00% ($10,000 investment minus $300 sales charge = $9,700). The Fund's performance assumes the reinvestment of all dividends and distributions. The Intermediate Index and the MMSSIFA have been adjusted to reflect reinvestment of dividends on securities in the index and average. |
2 | The Intermediate Index consists of bonds in the S&P Municipal Bond Index (“Main Index”) with a minimum maturity of 3 years and a maximum maturity of up to, but not including, 15 years as measured from the Rebalancing Date of the Main Index. The Main Index is a broad, comprehensive, market value-weighted index composed of approximately 55,000 bond issues that are exempt from U.S. federal income taxes or subject to the alternative minimum tax (AMT). Eligibility criteria for inclusion in the Main Index include, but are not limited to: the bond issuer must be a state (including the Commonwealth of Puerto Rico and U.S. territories) or a local government or a state or local government entity where interest on the bond is exempt from U.S. federal income taxes or subject to the AMT; the bond must be held by a mutual fund for which Standard & Poor's Securities Evaluations, Inc. provides prices; it must be denominated in U.S. dollars and have a minimum par amount of $2 million; and the bond must have a minimum term to maturity and/or call date greater than or equal to one calendar month. The Main Index is rebalanced monthly. The Intermediate Index is not adjusted to reflect sales charges, expenses and other fees that the Securities and Exchange Commission (SEC) requires to be reflected in the Fund's performance. The Intermediate Index is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. |
3 | Morningstar figures represent the average of the total returns reported by all the mutual funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. |
Sector Composition | Percentage of Total Net Assets |
General Obligation—Local | 28.4% |
Hospital | 13.7% |
Education | 11.6% |
Water & Sewer | 10.8% |
Dedicated Tax | 7.6% |
Refunded | 6.0% |
Airport | 4.7% |
General Obligation - State Appropriation | 4.1% |
Public Power | 3.8% |
Special Tax | 2.7% |
Other2 | 5.7% |
Other Assets and Liabilities—Net3 | 0.9% |
TOTAL | 100.0% |
1 | Sector classifications, and the assignment 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, including 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 93.4% 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. |
Principal Amount | Value | ||
MUNICIPAL BONDS—98.5% | |||
Michigan—98.5% | |||
$1,000,000 | Anchor Bay, MI School District, Refunding UT GO Bonds (Series 2012), 5.00% (Q-SBLF GTD), 5/1/2020 | $1,148,080 | |
850,000 | Ann Arbor, MI Public School District, School Building & Site UT GO Bonds (Series 2015), 5.00%, 5/1/2025 | 1,020,162 | |
955,000 | Ann Arbor, MI, Court and Police Facilities LT GO Capital Improvement Bonds, 4.75%, 5/1/2025 | 1,041,275 | |
1,000,000 | Avondale, MI School District, Refunding UT GO Bonds (Series 2009), 4.50% (Q-SBLF GTD)/(Assured Guaranty Municipal Corp. INS), 5/1/2018 | 1,087,180 | |
1,000,000 | Battle Creek, MI School District, School Building & Site UT GO Bonds, 5.00% (Assured Guaranty Municipal Corp. INS), 5/1/2022 | 1,066,100 | |
500,000 | Bay City, MI School District, Refunding UT GO Bonds (Series 2014), 5.00% (Q-SBLF GTD), 11/1/2023 | 592,000 | |
1,000,000 | Berkley, MI School District, School Building & Site UT GO Bonds (Series 2015), 5.00% (Q-SBLF GTD), 5/1/2030 | 1,141,460 | |
410,000 | Birmingham, MI Public Schools, School Building & Site UT GO Bonds (Series 2015), 5.00%, 5/1/2027 | 494,530 | |
1,690,000 | Bishop, MI International Airport Authority, Refunding LT GO (Series 2010A), 4.50% (Assured Guaranty Municipal Corp. INS), 12/1/2023 | 1,867,906 | |
1,000,000 | Brandon School District, MI, UT GO School Building and Site Bonds, 5.00% (Assured Guaranty Municipal Corp. INS), 5/1/2019 | 1,031,250 | |
710,000 | Caledonia, MI Community Schools, School Building & Site UT GO Bonds (Series 2014), 5.00% (Q-SBLF GTD), 5/1/2023 | 850,289 | |
1,000,000 | Central Michigan University Board of Trustees, General Revenue Refunding Bonds (Series 2009), 5.00%, 10/1/2023 | 1,110,040 | |
1,000,000 | Chippewa Valley, MI Schools, Refunding UT GO Bonds (Series 2013), 5.00% (Q-SBLF GTD), 5/1/2024 | 1,166,580 | |
1,250,000 | Coopersville, MI Public Schools, School Building & Site UT GO Bonds, 5.00% (United States Treasury PRF 5/1/2016 @100)(Assured Guaranty Municipal Corp. INS), 5/1/2022 | 1,289,637 | |
2,000,000 | Dearborn, MI School District, UT GO School Building & Site Bonds (Series 2014A), 5.00% (Q-SBLF GTD), 5/1/2025 | 2,359,680 | |
1,000,000 | Detroit/Wayne County, MI Stadium Authority, Building Authority Stadium LT GO Refunding Bonds (Series 2012), 5.00% (Wayne County, MI)/(Assured Guaranty Municipal Corp. INS), 10/1/2021 | 1,104,430 | |
1,000,000 | Eastern Michigan University Board of Regents, General Revenue Bonds (Series 2009C), 5.00% (Assured Guaranty Municipal Corp. INS), 2/15/2023 | 1,077,100 | |
1,000,000 | Ferris State University, MI, General Revenue Bonds (Series 2009), 5.00% (Assured Guaranty Municipal Corp. INS), 10/1/2020 | 1,109,750 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Michigan—continued | |||
$1,000,000 | Genesee, MI Water Supply System, Revenue Refunding Bonds (Series 2014), 5.00% (Build America Mutual Assurance INS), 11/1/2025 | $1,171,840 | |
1,000,000 | Grand Rapids, MI Sanitary Sewer System, Revenue Refunding Bonds (Series 2013), 5.00%, 1/1/2024 | 1,193,870 | |
500,000 | Grand Rapids, MI Sanitary Sewer System, Sanitary Sewer System Revenue Improvement and Refunding Bonds (Series 2014), 5.00%, 1/1/2022 | 595,025 | |
705,000 | Grand Valley State University Board of Trustees, MI, General Revenue Bonds (Series 2015A), 5.00%, 12/1/2026 | 826,429 | |
1,500,000 | Holland, MI Electric Utility System, Revenue Bonds (Series 2014A), 4.00%, 7/1/2022 | 1,664,385 | |
2,000,000 | Holland, MI School District, UT GO Bonds, 5.00% (Holland, MI School District INS), (Assured Guaranty Municipal Corp. INS), 5/1/2025 | 2,402,380 | |
1,030,000 | Holly Area School District, MI, UT GO Refunding Bonds (Series 2014), 5.00% (Q-SBLF GTD), 5/1/2024 | 1,221,570 | |
2,000,000 | Jackson County, MI Hospital Finance Authority, Hospital Revenue Refunding Bonds (Series 2006C), 5.00% (Allegiance Health)/(Assured Guaranty Municipal Corp. INS), 6/1/2026 | 2,227,300 | |
2,130,000 | Kalamazoo, MI Hospital Finance Authority, Hospital Revenue Bonds (Series 2006), 5.00% (Bronson Methodist Hospital)/(Assured Guaranty Municipal Corp. INS), 5/15/2019 | 2,395,078 | |
1,000,000 | Kalamazoo, MI Regional Educational Services Agency, UT GO School Building and Site Bonds, 5.00%, 5/1/2019 | 1,098,810 | |
510,000 | Kalamazoo, MI Water Revenue, Revenue Refunding Bonds, 5.00% (AMBAC INS), 9/1/2015 | 510,000 | |
1,785,000 | Kent County, MI Airport Revenue, LT GO Airport Revenue Bonds (Series 2007), 5.00% (Gerald R. Ford International Airport) (United States Treasury PRF 1/1/2017@100), 1/1/2021 | 1,892,332 | |
1,750,000 | Kent County, MI, LT GO Bonds (Series 2009), 5.00%, 1/1/2025 | 1,942,342 | |
1,500,000 | Kent Hospital Finance Authority, MI, Revenue Refunding Bonds (Series 2011A), 5.00% (Spectrum Health), 11/15/2022 | 1,750,635 | |
1,010,000 | Lake Superior State University, MI, General Revenue Refunding Bonds (Series 2012), 4.00% (Assured Guaranty Municipal Corp. INS), 11/15/2020 | 1,093,638 | |
1,900,000 | Lansing, MI Board of Water & Light, Utility System Revenue Bonds (Series 2011A), 5.00%, 7/1/2024 | 2,184,107 | |
1,200,000 | Marysville, MI Public School District, School Building & Site UT GO Bonds (Series 2007), 5.00% (Assured Guaranty Municipal Corp. INS), 5/1/2022 | 1,279,320 | |
1,500,000 | Michigan Finance Authority, Revenue Bonds (Series 2012B), 5.00% (Michigan Finance Authority Unemployment Obligation Assessment), 1/1/2021 | 1,699,275 | |
1,000,000 | Michigan Finance Authority, State Revolving Fund Revenue Bonds (Series 2012), 5.00% (Clean Water Revolving Fund), 10/1/2025 | 1,183,610 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Michigan—continued | |||
$1,525,000 | Michigan Municipal Bond Authority, Revenue Bonds, 5.00% (Clean Water Revolving Fund), 10/1/2017 | $1,662,524 | |
1,000,000 | Michigan Public Power Agency, Combustion Turbine No. 1 Project Revenue Refunding Bonds (Series 2011A), 5.00% (Assured Guaranty Municipal Corp. INS), 1/1/2022 | 1,127,260 | |
500,000 | Michigan State Building Authority, Facilities Program Revenue & Refunding Bonds (Series 2013 1-A), 5.00%, 10/15/2022 | 592,390 | |
1,000,000 | Michigan State Building Authority, Facilities Program Revenue Bonds (2009 Series II), 5.00% (Assured Guaranty Municipal Corp. INS), 10/15/2022 | 1,131,110 | |
1,000,000 | Michigan State Building Authority, Revenue Refunding Bonds (Series 2009I), 5.25% (Assured Guaranty Municipal Corp. INS), 10/15/2024 | 1,137,900 | |
1,000,000 | Michigan State Building Authority, Revenue Refunding Bonds (Series 2015I), 5.00%, 4/15/2027 | 1,179,740 | |
2,000,000 | Michigan State Comprehensive Transportation Fund, Refunding Bonds (Series 2009), 5.25%, 5/15/2019 | 2,264,160 | |
1,000,000 | Michigan State Comprehensive Transportation Fund, Refunding Revenue Bonds (Series 2015), 5.00%, 11/15/2026 | 1,199,750 | |
2,485,000 | Michigan State Department of Transportation, Grant Anticipation Bonds, 5.25% (Assured Guaranty Municipal Corp. INS), 9/15/2021 | 2,705,941 | |
1,200,000 | Michigan State Finance Authority Revenue, Hospital Revenue & Refunding Bonds (Series 2015), 5.00% (Sparrow Obligated Group, MI), 11/15/2022 | 1,387,560 | |
1,000,000 | Michigan State Finance Authority Revenue, Hospital Revenue & Refunding Bonds (Series 2015MI), 5.50% (Trinity Healthcare Credit Group), 12/1/2026 | 1,232,780 | |
250,000 | Michigan State Finance Authority Revenue, Hospital Revenue Refunding Bonds (Series 2014), 5.00% (MidMichigan Obligated Group), 6/1/2026 | 286,908 | |
1,000,000 | Michigan State Finance Authority Revenue, Hospital Revenue Refunding Bonds (Series 2015A), 5.00% (Beaumont Health Credit Group), 8/1/2025 | 1,151,990 | |
1,500,000 | Michigan State Finance Authority Revenue, Local Government Loan Program Revenue Bonds (Series 2014B), 5.00% (Public Lighting Authority), 7/1/2022 | 1,707,435 | |
1,000,000 | Michigan State Finance Authority Revenue, Local Government Loan Program Revenue Bonds (Series 2014H-1), 5.00% (Detroit, MI Regional Convention Facility Authority), 10/1/2020 | 1,123,630 | |
1,000,000 | Michigan State Finance Authority Revenue, Senior Lien Revenue Bonds (Series 2014 C-5), 5.00% (Detroit, MI Sewage Disposal System)/(National Public Finance Guarantee Corporation INS), 7/1/2019 | 1,111,320 | |
2,000,000 | Michigan State Finance Authority Revenue, Senior Lien Revenue Bonds (Series 2014 D-2), 5.00% (Detroit, MI Water Supply System)/(Assured Guaranty Municipal Corp. INS), 7/1/2025 | 2,300,800 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Michigan—continued | |||
$2,500,000 | Michigan State Finance Authority Revenue, Senior Lien Revenue Bonds (Series D-2), 5.00% (Detroit, MI Water Supply System)/(Assured Guaranty Municipal Corp. INS), 7/1/2024 | $2,894,850 | |
1,970,000 | Michigan State Financial Authority, Revenue Bonds (Series 2006A), 5.00% (Trinity Healthcare Credit Group)/(United States Treasury PRF 12/1/2016@100),12/1/2026 | 2,080,596 | |
1,000,000 | Michigan State Hospital Finance Authority, Hospital Revenue & Refunding Bonds (Series 2006A), 5.00% (Henry Ford Health System, MI), 11/15/2021 | 1,041,690 | |
1,275,000 | Michigan State Hospital Finance Authority, Hospital Revenue & Refunding Bonds (Series 2007A), 5.00% (Oakwood Obligated Group) (United States Treasury PRF 7/15/2017@100), 7/15/2018 | 1,378,798 | |
1,000,000 | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, 5.00% (McLaren Health Care Corp.), 5/15/2023 | 1,165,370 | |
2,000,000 | Michigan State Hospital Finance Authority, Revenue Bonds (Series 2010B), 5.00% (Ascension Health Alliance Senior Credit Group), 11/15/2024 | 2,234,640 | |
500,000 | Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Series A), 5.00% (Henry Ford Health System, MI), 11/15/2025 | 518,135 | |
1,000,000 | Michigan State Strategic Fund, LO Revenue Refunding Bonds, 7.00% (Detroit Edison Co.)/(AMBAC INS), 5/1/2021 | 1,260,300 | |
2,600,000 | Michigan State Trunk Line, Revenue Refunding Bonds (Series 2009), 5.00%, 11/1/2020 | 2,964,260 | |
500,000 | Michigan State Trunk Line, State Trunk Line Fund Bonds (Series 2011), 5.00%, 11/15/2022 | 590,155 | |
500,000 | Michigan State Trunk Line, State Trunk Line Fund Bonds (Series 2011), 5.00%, 11/15/2023 | 581,375 | |
1,000,000 | Michigan State Trunk Line, State Trunk Line Refunding Bonds (Series 2014), 5.00%, 11/15/2018 | 1,125,950 | |
1,000,000 | Michigan State University Board of Trustees, General Revenue Bonds (Series 2015A), 5.00% (Michigan State University), 8/15/2028 | 1,194,070 | |
1,000,000 | Michigan Strategic Fund, LO Revenue Bonds (Series 2011), 5.25% (Michigan State), 10/15/2022 | 1,174,610 | |
1,000,000 | Michigan Strategic Fund, LO Revenue Bonds (Series 2015), 5.00% (Michigan State), 3/1/2023 | 1,166,570 | |
1,000,000 | Michigan Strategic Fund, LO Refunding Revenue Bonds (Series 2008ET-2), 5.50% TOBs (Detroit Edison Co.), Mandatory Tender 8/1/2016 | 1,038,440 | |
1,000,000 | Michigan Technological University Board of Control, General Revenue & Revenue Refunding Bonds (Series 2008), 5.25% (United States Treasury COL), 10/1/2018 | 1,130,830 | |
500,000 | Northview Michigan Public School District, Refunding UT GO Bonds, 5.00% (Assured Guaranty Municipal Corp. INS), 5/1/2019 | 545,890 | |
1,000,000 | Oakland County, MI EDC, Revenue Refunding Bonds, 4.00% (Cranbrook Educational Community), 11/1/2021 | 1,032,550 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Michigan—continued | |||
$1,855,000 | Orchard View, MI Schools, UT GO Bonds, 4.00% (Q-SBLF GTD)/ (Assured Guaranty Municipal Corp. INS), 5/1/2022 | $1,994,719 | |
1,425,000 | Rockford, MI Public Schools, School Building & Site UT GO Bonds (Series 2014), 5.00% (Q-SBLF GTD), 5/1/2025 | 1,676,740 | |
1,130,000 | Romulus, MI Tax Increment Finance Authority, Recreation Center LT GO Bonds, 5.00% (Assured Guaranty Municipal Corp. INS), 11/1/2022 | 1,183,076 | |
1,000,000 | Roseville, MI Community Schools, UT GO Refunding Bonds (Series 2014), 5.00% (Q-SBLF GTD), 5/1/2024 | 1,185,990 | |
2,000,000 | Royal Oak, MI Hospital Finance Authority, Hospital Revenue Refunding Bonds (Series 2014D), 5.00% (William Beaumont Hospital, MI), 9/1/2023 | 2,327,400 | |
1,670,000 | Saginaw County, MI Water Supply System, Revenue Bonds (Series 2011A), 4.75% (Assured Guaranty Municipal Corp. INS), 7/1/2025 | 1,831,623 | |
500,000 | South Redford, MI School District, UT GO Refunding Bonds, 5.00% (Q-SBLF GTD), 5/1/2020 | 574,040 | |
1,085,000 | Southfield, MI Library Building Authority, Refunding LT GO Bonds, 5.00%, 5/1/2026 | 1,262,929 | |
1,000,000 | Thornapple Kellogg, MI School District, Refunding UT GO Bonds (Series 2014), 5.00% (Q-SBLF GTD), 5/1/2025 | 1,176,660 | |
1,000,000 | University of Michigan (The Regents of), General Revenue Bonds (Series 2010C), 4.00%, 4/1/2022 | 1,096,370 | |
2,000,000 | 1 | University of Michigan (The Regents of), General Revenue Bonds (Series 2012E), 0.45%, 04/01/2033 | 1,989,440 |
250,000 | University of Michigan (The Regents of), General Revenue Bonds (Series 2014A), 5.00%, 4/1/2024 | 306,448 | |
500,000 | Utica, MI Community Schools, School Building and Site Refunding UT GO Bonds (Series 2015), 5.00% (Q-SBLF GTD), 5/1/2029 | 574,300 | |
500,000 | Utica, MI Community Schools, School Building and Site Refunding UT GO Bonds, 5.00% (National Public Finance Guarantee Corporation INS), 5/1/2017 | 535,475 | |
2,000,000 | Wayne County, MI Airport Authority, Airport Revenue Refunding Bonds (Series 2010C), 5.00%, 12/1/2021 | 2,268,520 | |
2,000,000 | Wayne County, MI Airport Authority, Airport Revenue Refunding Bonds (Series 2011A-B), 5.00%, 12/1/2021 | 2,299,820 | |
1,400,000 | Wayne County, MI Airport Authority, Junior Lien Revenue Bonds, 5.00% (National Re Holdings Corp. INS), 12/1/2023 | 1,493,184 | |
1,000,000 | Wayne State University, MI, General Revenue Refunding Bonds (Series 2008), 5.00% (Assured Guaranty Municipal Corp. INS), 11/15/2019 | 1,114,430 | |
1,355,000 | West Bloomfield, MI School District, Refunding UT GO Bonds (Series 2015), 5.00%, 5/1/2020 | 1,548,684 | |
1,000,000 | Western Michigan University, General Revenue & Refunding Bonds (Series 2015A), 5.00%, 11/15/2026 | 1,175,580 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Michigan—continued | |||
$1,000,000 | Western Michigan University, General Revenue Refunding Bonds (Series 2009), 5.25% (Assured Guaranty Municipal Corp. INS), 11/15/2019 | $1,123,590 | |
500,000 | Western Townships MI, Utilities Authority, Sewage Disposal System Refunding LT GO Bonds (Series 2012), 5.00%, 1/1/2023 | 587,655 | |
1,000,000 | Ypsilanti, MI School District, UT GO Bonds, 5.00% (National Public Finance Guarantee Corporation INS), 5/1/2023 | 1,066,100 | |
TOTAL | 127,704,445 | ||
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $121,946,470) | 127,704,445 | ||
SHORT-TERM MUNICIPALS—0.6%2 | |||
Michigan—0.6% | |||
800,000 | Michigan Higher Education Facilities Authority, (Series 2006) Weekly VRDNs (Albion College)/(JPMorgan Chase Bank, N.A. LOC), 0.020%, 9/3/2015 (AT AMORTIZED COST) | 800,000 | |
TOTAL MUNICIPAL INVESTMENTS—99.1% (IDENTIFIED COST $122,746,470)3 | 128,504,445 | ||
OTHER ASSETS AND LIABILITIES - NET—0.9%4 | 1,157,583 | ||
TOTAL NET ASSETS—100% | $129,662,028 |
1 | Floating rate note with current rate and maturity date shown. |
2 | Current rate and next reset date shown for Variable Rate Demand Notes. |
3 | The cost of investments for federal tax purposes amounts to $122,749,213. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
AMBAC | —American Municipal Bond Assurance Corporation |
COL | —Collateralized |
EDC | —Economic Development Corporation |
GO | —General Obligation |
GTD | —Guaranteed |
INS | —Insured |
LO | —Limited Obligation |
LOC | —Letter of Credit |
LT | —Limited Tax |
PRF | —Pre-refunded |
Q-SBLF | —Qualified School Bond Loan Fund |
TOBs | —Tender Option Bonds |
UT | —Unlimited Tax |
VRDNs | —Variable Rate Demand Notes |
Year Ended August 31 | 2015 | 2014 | 2013 | 2012 | 2011 |
Net Asset Value, Beginning of Period | $11.39 | $10.90 | $11.59 | $11.17 | $11.27 |
Income From Investment Operations: | |||||
Net investment income | 0.29 | 0.33 | 0.34 | 0.36 | 0.39 |
Net realized and unrealized gain (loss) on investments | (0.08) | 0.49 | (0.67) | 0.42 | (0.10) |
TOTAL FROM INVESTMENT OPERATIONS | 0.21 | 0.82 | (0.33) | 0.78 | 0.29 |
Less Distributions: | |||||
Distributions from net investment income | (0.29) | (0.33) | (0.33) | (0.36) | (0.39) |
Distributions from net realized gain on investments | — | — | (0.03) | — | — |
TOTAL DISTRIBUTIONS | (0.29) | (0.33) | (0.36) | (0.36) | (0.39) |
Net Asset Value, End of Period | $11.31 | $11.39 | $10.90 | $11.59 | $11.17 |
Total Return1 | 1.88% | 7.60% | (2.89)% | 7.11% | 2.74% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.75% | 0.73% | 0.63% | 0.62% | 0.54% |
Net investment income | 2.57% | 2.94% | 2.95% | 3.16% | 3.60% |
Expense waiver/reimbursement2 | 0.16% | 0.20% | 0.26% | 0.35% | 0.38% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $129,662 | $123,083 | $121,759 | $131,357 | $124,626 |
Portfolio turnover | 25% | 19% | 8% | 13% | 16% |
1 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
2 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
Assets: | ||
Total investment in securities, at value (identified cost $122,746,470) | $128,504,445 | |
Income receivable | 1,608,322 | |
Receivable for shares sold | 827 | |
TOTAL ASSETS | 130,113,594 | |
Liabilities: | ||
Payable for shares redeemed | $205,051 | |
Income distribution payable | 95,025 | |
Bank overdraft | 70,713 | |
Payable for other service fees (Notes 2 and 5) | 27,305 | |
Payable to adviser (Note 5) | 7,146 | |
Payable for administrative fee (Note 5) | 2,233 | |
Payable for portfolio accounting fees | 23,750 | |
Accrued expenses (Note 5) | 20,343 | |
TOTAL LIABILITIES | 451,566 | |
Net assets for 11,459,443 shares outstanding | $129,662,028 | |
Net Assets Consists of: | ||
Paid-in capital | $123,536,742 | |
Net unrealized appreciation of investments | 5,757,975 | |
Accumulated net realized gain on investments | 365,024 | |
Undistributed net investment income | 2,287 | |
TOTAL NET ASSETS | $129,662,028 | |
$129,662,028 ÷ 11,459,443 shares outstanding, no par value, unlimited shares authorized | $11.31 | |
Offering price per share (100/97.00 of $11.31) | $11.66 | |
Redemption proceeds per share | $11.31 |
Investment Income: | ||
Interest | $4,212,977 | |
Expenses: | ||
Investment adviser fee (Note 5) | $506,250 | |
Administrative fee (Note 5) | 99,046 | |
Custodian fees | 9,521 | |
Transfer agent fees | 52,505 | |
Directors'/Trustees' fees (Note 5) | 2,249 | |
Auditing fees | 26,650 | |
Legal fees | 9,266 | |
Other service fees (Notes 2 and 5) | 312,369 | |
Portfolio accounting fees | 90,239 | |
Share registration costs | 25,977 | |
Printing and postage | 15,459 | |
Miscellaneous (Note 5) | 6,378 | |
TOTAL EXPENSES | 1,155,909 | |
Waiver of investment adviser fee (Note 5) | (200,489) | |
Net expenses | 955,420 | |
Net investment income | 3,257,557 | |
Realized and Unrealized Gain (Loss) on Investments: | ||
Net realized gain on investments | 612,993 | |
Net change in unrealized appreciation of investments | (1,444,031) | |
Net realized and unrealized loss on investments | (831,038) | |
Change in net assets resulting from operations | $2,426,519 |
Year Ended August 31 | 2015 | 2014 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $3,257,557 | $3,424,627 |
Net realized gain (loss) on investments | 612,993 | (196,442) |
Net change in unrealized appreciation/depreciation of investments | (1,444,031) | 5,296,325 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 2,426,519 | 8,524,510 |
Distributions to Shareholders: | ||
Distributions from net investment income | (3,257,233) | (3,415,561) |
Share Transactions: | ||
Proceeds from sale of shares | 23,713,292 | 25,994,779 |
Net asset value of shares issued to shareholders in payment of distributions declared | 2,109,467 | 2,116,109 |
Cost of shares redeemed | (18,413,406) | (31,895,430) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 7,409,353 | (3,784,542) |
Change in net assets | 6,578,639 | 1,324,407 |
Net Assets: | ||
Beginning of period | 123,083,389 | 121,758,982 |
End of period (including undistributed net investment income of $2,287 and $3,575, respectively) | $129,662,028 | $123,083,389 |
■ | Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the “Trustees”). |
■ | Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium), unless the issuer's creditworthiness is impaired or other factors indicate that amortized cost is not an accurate estimate of the investment's fair value, in which case it would be valued in the same manner as a longer-term security. |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | 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. |
Year Ended August 31 | 2015 | 2014 |
Shares sold | 2,085,445 | 2,321,428 |
Shares issued to shareholders in payment of distributions declared | 185,412 | 189,307 |
Shares redeemed | (1,621,047) | (2,872,096) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 649,810 | (361,361) |
Increase (Decrease) | |
Undistributed Net Investment Income (Loss) | Accumulated Net Realized Gain (Loss) |
$(1,612) | $1,612 |
2015 | 2014 | |
Tax-exempt income | $3,257,233 | $3,415,561 |
Undistributed tax-exempt income | $2,287 |
Undistributed long-term capital gains | $367,767 |
Net unrealized appreciation | $5,755,232 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.150% | on the first $5 billion |
0.125% | on the next $5 billion |
0.100% | on the next $10 billion |
0.075% | on assets in excess of $20 billion |
Purchases | $31,177,219 |
Sales | $30,290,464 |
October 26, 2015
Beginning Account Value 3/1/2015 | Ending Account Value 8/31/2015 | Expenses Paid During Period1 | |
Actual | $1,000 | $1,001.30 | $3.78 |
Hypothetical (assuming a 5% return before expenses) | $1,000 | $1,021.42 | $3.82 |
1 | Expenses are equal to the Fund's annualized net expense ratio of 0.75%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half-year period). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John F. Donahue* Birth Date: July 28, 1924 Trustee Indefinite Term Began serving: August 1990 | Principal Occupations: Director or Trustee of the Federated Fund Family; Chairman and Director, Federated Investors, Inc.; Chairman of the Federated Fund Family's Executive Committee. Previous Positions: Chairman of the Federated Fund Family; Trustee, Federated Investment Management Company; Chairman and Director, Federated Investment Counseling. |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: August 1990 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Family; Director or Trustee of the Funds in the Federated Fund Family; President, Chief Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd. |
* | Family relationships and reasons for “interested” status: John F. Donahue is the father of J. Christopher Donahue; both are “interested” due to their beneficial ownership of shares of Federated Investors, Inc. and the positions they hold with Federated and its subsidiaries. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; Chairman and CEO, The Collins Group, Inc. (a private equity firm). Other Directorships Held: Director, Chair of the Compensation Committee, Audit Committee member, KLX Corp. Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director, FleetBoston Financial Corp.; Director and Audit Committee Member, Bank of America Corp. and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee of the Federated Fund Family; Retired. Other Directorships Held: Director, Chair of the Audit Committee, Governance Committee, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP. Mr. Hough is an Executive Committee member of the United States Golf Association, he serves on the President's Cabinet and Business School Board of Visitors for the University of Alabama and is on the Business School Board of Visitors for Wake Forest University. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Fund Family; Adjunct Professor of Law, Duquesne University School of Law. Other Directorships Held: Director, CONSOL Energy Inc. Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously served as: Associate General Secretary, Diocese of Pittsburgh; Professor of Law, Duquesne University School of Law and was a member of the Superior Court of Pennsylvania. Judge Lally-Green also holds the positions of: Member, Pennsylvania State Board of Education; Director, Saint Vincent College; Director and Chair, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Our Campaign for the Church Alive!, Inc.; Director, Pennsylvania Bar Institute; and Director, Cardinal Wuerl North Catholic High School, Inc. Judge Lally-Green has held the positions of: Director, Auberle; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; and Director, Catholic High Schools of the Diocese of Pittsburgh, Inc. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Peter E. Madden Birth Date: March 16, 1942 Trustee Indefinite Term Began serving: August 1991 | Principal Occupation: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Fund Family; Retired. Other Directorships Held: None. Qualifications: Mr. Madden has served in several business management, mutual fund services and directorship positions throughout his career. Mr. Madden previously served as President, Chief Operating Officer and Director, State Street Bank and Trust Company (custodian bank) and State Street Corporation (financial services). He was Director, VISA USA and VISA International and Chairman and Director, Massachusetts Bankers Association. Mr. Madden served as Director, Depository Trust Corporation and Director, The Boston Stock Exchange. Mr. Madden also served as a Representative to the Commonwealth of Massachusetts General Court. |
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Trustee Indefinite Term Began serving: January 1999 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Mansfield has served in several banking, business management and educational roles and directorship positions throughout his career. Mr. Mansfield previously served as Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly, Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University; Executive Vice President DVC Group, Inc. (marketing, communications and technology). |
Thomas M. O'Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: October 2006 | Principal Occupations: Director or Trustee, Vice Chair of the Audit Committee of the Federated Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O'Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O'Neill serves as Director, Medicines for Humanity and Director, The Golisano Children's Museum of Naples, Florida. Mr. O'Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey serves as Board Member, Epilepsy Foundation of Western Pennsylvania and Board member, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: July 1999 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
John W. McGonigle Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Officer since: August 1990 | Principal Occupations: Executive Vice President and Secretary of the Federated Fund Family; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc. Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp. and Edgewood Services, Inc.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Investors, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Richard B. Fisher Birth Date: May 17, 1923 VICE CHAIRMAN Officer since: August 2002 | Principal Occupations: Vice Chairman or Vice President of some of the Funds in the Federated Fund Family; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp. Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Family; Executive Vice President, Federated Investors, Inc.; Director and Chief Executive Officer, Federated Securities Corp. |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER Officer since: January 2005 | Principal Occupations: Mr. Germain is Chief Legal Officer of the Federated Fund Family. He is General Counsel and Vice President, Federated Investors, Inc.; President, Federated Administrative Services and Federated Administrative Services, Inc.; Vice President, Federated Securities Corp.; Secretary, Federated Private Asset Management, Inc.; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Fund Family; Vice President and Chief Compliance Officer of Federated Investors, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Investors, Inc. Prior to joining Federated, Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Robert J. Ostrowski Birth Date: April 26, 1963 CHIEF INVESTMENT OFFICER Officer since: February 2010 | Principal Occupations: Robert J. Ostrowski joined Federated in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated's taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund's Adviser in 2009 and served as a Senior Vice President of the Fund's Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University. |
Lee R. Cunningham II Birth Date: August 26, 1964 Vice President Officer since: June 2012 Portfolio Manager since: May 1998 | Principal Occupations: Lee R. Cunningham II has been the Fund's Portfolio Manager since May 1998. He is Vice President of the Trust with respect to the Fund. He joined Federated in 1995 as an Investment Analyst and has been a Portfolio Manager since 1998. He was named an Assistant Vice President of the Fund's Adviser in January 1998 and became a Vice President of the Fund's Adviser in July 2000. From 1986 through 1994, Mr. Cunningham was a Project Engineer with Pennsylvania Power and Light Company. He received his M.B.A. with concentrations in Finance and Operations from the University of Pittsburgh. |
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Warrendale, PA 15086-7561
or call 1-800-341-7400.
2015 ©Federated Investors, Inc.
Share Class | Ticker |
A | NYIFX |
B | NYIBX |
1 | Income may be subject to the federal alternative minimum tax for individuals and corporations (AMT). |
2 | Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the NY Index. |
3 | Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the MMNYLFA. |
4 | Duration is a measure of a security's price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities with shorter durations. For purposes of this Management's Discussion of Fund Performance, duration is determined using a third-party analytical system. |
5 | Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices. |
6 | Credit ratings pertain only to the securities in the portfolio and do not protect Fund shares against market risk. |
7 | The Fund's use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments. |
8 | Investment-grade securities and noninvestment-grade securities may either be: (a) rated by a nationally recognized statistical ratings organization or rating agency; or (b) unrated securities that the Fund's investment adviser (“Adviser”) believes are of comparable quality. The rating agencies that provided the ratings for rated securities include Standard and Poor's, Moody's Investor Services, Inc. and Fitch Rating Service. When ratings vary, the highest rating is used. Credit ratings of “AA” or better are considered to be high credit quality; credit ratings of “A” are considered high or medium/good quality; and credit ratings of “BBB” are considered to be medium/good credit quality, and the lowest category of investment-grade securities; credit ratings of “BB” and below are lower-rated, noninvestment-grade securities or junk bonds; and credit ratings of “CCC” or below are noninvestment-grade securities that have high default risk. Any credit quality breakdown does not give effect to the impact of any credit derivative investments made by the Fund. Credit ratings are an indication of the risk that a security will default. They do not protect a security from credit risk. Lower-rated bonds typically offer higher yields to help compensate investors for the increased risk associated with them. Among these risks are lower creditworthiness, greater price volatility, more risk to principal and income than with higher-rated securities and increased possibilities of default. |
Federated New York Municipal Income Fund - | Class A Shares | NA | NY Index | NYIG Index | MMNYLFA |
F | NA | I | I | I | |
8/31/2005 | 9,550 | 10,000 | 10,000 | 10,000 | |
8/31/2006 | 9,865 | 10,354 | 10,325 | 10,275 | |
8/31/2007 | 9,921 | 10,612 | 10,559 | 10,389 | |
8/31/2008 | 9,974 | 11,061 | 11,040 | 10,637 | |
8/31/2009 | 10,142 | 11,650 | 11,718 | 10,972 | |
8/31/2010 | 11,197 | 12,772 | 12,901 | 12,159 | |
8/31/2011 | 11,421 | 13,102 | 13,252 | 12,290 | |
8/31/2012 | 12,435 | 14,177 | 14,474 | 13,567 | |
8/31/2013 | 11,876 | 13,698 | 13,873 | 12,724 | |
8/31/2014 | 12,998 | 15,078 | 15,444 | 14,136 | |
8/31/2015 | 13,249 | 15,496 | 15,892 | 14,493 |
■ | Total returns shown include the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550) |
1 Year | 5 Years | 10 Years | |
Class A Shares | -2.62% | 2.47% | 2.86% |
Class B Shares | -4.26% | 2.29% | 2.70% |
NY Index | 2.78% | 3.94% | 4.48% |
NYIG Index | 2.89% | 4.26% | 4.74% |
MMNYLFA | 2.63% | 3.57% | 3.77% |
1 | Represents a hypothetical investment of $10,000 in the Fund after deducting applicable sales charges: For Class A Shares, the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550); For Class B Shares, the maximum contingent deferred sales charge is 5.50% on any redemption of shares held up to one year from the purchase date. The Fund's performance assumes the reinvestment of all dividends and distributions. The NY Index, NYIG Index MMNYFCA have been adjusted to reflect reinvestment of dividends on securities in the indexes and average. |
2 | The NY Index consists of bonds in the S&P Municipal Bond New York Index (“Main Index”) that have been issued by the state of New York or local governments or state or local government entities within New York. The Main Index is a broad, comprehensive, market value-weighted index comprised of approximately 55,000 bond issues that are exempt from U.S. federal income taxes or subject to the alternative minimum tax (AMT). Eligibility criteria for inclusion in the Main Index include, but are not limited to: the bond issuer must be a state (including the Commonwealth of Puerto Rico and U.S. territories) or a local government or a state or agency where interest on the bond is exempt from U.S. federal income taxes or subject to the AMT; the bond must be held by a mutual fund for which Standard & Poor's Securities Evaluations, Inc. provides prices; it must be denominated in U.S. dollars and have a minimum par amount of $2 million; and the bond must have a minimum term to maturity and/or call date greater than or equal to one calendar month. The Main Index is rebalanced monthly. The NY Index is not adjusted to reflect sales charges, expenses and other fees that the Securities and Exchange Commission (SEC) requires to be reflected in the Fund's performance. The NY Index is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. |
3 | The NYIG Index represents the portion of the NY Index composed solely of bonds that are rated BBB-/Baa3 or higher with remaining maturities of more than three years that are not subject to AMT. The NYIG Index is not adjusted to reflect sales charges, expenses and other fees that the SEC requires to be reflected in the Fund's performance. The NYIG Index is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. |
4 | Morningstar figures represent the average of the total returns reported by all the mutual funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. |
Sector Composition | Percentage of Total Net Assets |
Education | 18.7% |
Dedicated Tax | 14.8% |
Hospital | 9.8% |
General Obligation—Local | 6.5% |
Industrial Development Bond/Pollution Control | 6.1% |
Toll Road | 5.5% |
Other Transportation | 5.5% |
Pre-Refunded | 4.1% |
General Obligation—State | 3.9% |
Resource Recovery | 3.6% |
Other2 | 20.4% |
Other Assets and Liabilities—Net3 | 1.1% |
TOTAL | 100.0% |
1 | Sector classifications, and the assignment 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, including 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. Pre-refunded securities are those whose debt service is paid from escrowed assets, usually U.S. government securities. |
2 | For purposes of this table, sector classifications constitute 78.5% 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. |
Principal Amount | Value | ||
MUNICIPAL BONDS—97.8% | |||
Guam—1.1% | |||
$300,000 | Guam Power Authority, Revenue Bonds (Series 2014A), 5.00%, 10/1/2031 | $328,392 | |
New York—96.5% | |||
1,000,000 | Babylon, NY IDA, Resource Recovery Bonds (Series 2009A), 5.00% (Covanta Babylon, Inc.), 1/1/2019 | 1,116,820 | |
250,000 | Battery Park, NY City Authority, Senior Revenue Bonds (Series 2013A), 5.00%, 11/1/2025 | 302,782 | |
480,000 | Brooklyn Arena Local Development Corporation, NY, Pilot Revenue Bonds (Series 2009), 6.375% (Original Issue Yield: 6.476%), 7/15/2043 | 555,595 | |
200,000 | Build NYC Resource Corporation, Revenue Refunding Bonds (Series 2014), 5.00% (New York Methodist Hospital), 7/1/2028 | 225,288 | |
250,000 | Cattaraugus County, NY Capital Resource Corp., Revenue Bonds, 5.00% (St. Bonaventure University), 5/1/2044 | 261,798 | |
200,000 | Chautauqua, NY Tobacco Asset Securitization Corp., Tobacco Settlement Asset-Backed Bonds (Series 2014), 5.00%, 6/1/2034 | 207,506 | |
300,000 | Dutchess County, NY Local Development Corporation, Revenue Bonds (Series 2014A), 5.00% (Health Quest Systems, Inc. Obligated Group), 7/1/2034 | 327,960 | |
300,000 | Dutchess County, NY Local Development Corporation, Revenue Bonds (Series 2015A), 5.00% (Marist College), 7/1/2040 | 334,509 | |
200,000 | Hempstead, NY Local Development Corporation, Revenue Refunding Bonds (Series 2014), 5.00% (Adelphi University), 10/1/2034 | 225,154 | |
215,000 | Hudson Yards Infrastructure Corp. NY, Hudson Yards Senior Revenue Bonds (Series 2012A), 5.75%, 2/15/2047 | 244,982 | |
500,000 | Livingston County, NY IDA, Civic Facility Revenue Bonds (Series 2005), 6.00% (Nicholas H. Noyes Memorial Hospital Civic Facility), 7/1/2030 | 503,400 | |
500,000 | Long Island Power Authority, NY, Electric System General Revenue Bonds (Series 2014A), 5.00%, 9/1/2044 | 549,375 | |
300,000 | Madison County, NY Capital Resource Corporation, Tax-Exempt Revenue Bonds (Series 2015B), 5.00% (Colgate University), 7/1/2040 | 340,896 | |
300,000 | 1 | Metropolitan Transportation Authority, NY, (MTA Dedicated Tax Fund), Dedicated Tax Fund Refunding Bonds (Series 2008B-3a) (Floating Rate Tender Notes), 0.39%, 11/1/2018 | 295,563 |
500,000 | Metropolitan Transportation Authority, NY, Dedicated Tax Fund Bonds (Series 2009B), 5.00% (MTA Dedicated Tax Fund)/(Original Issue Yield: 5.10%), 11/15/2034 | 565,005 | |
500,000 | Metropolitan Transportation Authority, NY, Revenue Bonds (Series 2006A), 5.00% (MTA Transportation Revenue), 11/15/2035 | 522,135 | |
500,000 | Metropolitan Transportation Authority, NY, Revenue Bonds (Series 2012E), 5.00% (MTA Transportation Revenue), 11/15/2025 | 591,160 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
New York—continued | |||
$475,000 | Monroe County, NY IDC, Revenue Bonds (Series 2011A), 5.00% (University of Rochester, NY), 7/1/2041 | $517,246 | |
500,000 | Nassau County, NY IDA, Industrial Development Revenue Bonds (Series 2003A), 5.25% (Keyspan-Glenwood Energy Center LLC)/(KeySpan Corp. GTD), 6/1/2027 | 501,990 | |
100,000 | Nassau County, NY Local Economic Assistance Corporation, Revenue Bonds (Series 2014), 5.00% (Catholic Health Services of Long Island Obligated Group), 7/1/2034 | 109,320 | |
300,000 | New Rochelle, NY Corporation for Local Development, Revenue Bonds (Series 2015), 5.00% (Iona College), 7/1/2040 | 323,670 | |
500,000 | New York City Liberty Development Corp., Revenue Bonds (Series 2005), 5.25% (Goldman Sachs Group, Inc.), 10/1/2035 | 584,940 | |
500,000 | New York City Trust For Cultural Resources, Revenue Refunding Bonds (Series 2008A), 5.00% (Museum of Modern Art), 4/1/2028 | 554,715 | |
500,000 | New York City Trust For Cultural Resources, Revenue Refunding Bonds (Series 2008A), 5.00% (Museum of Modern Art), 4/1/2031 | 550,505 | |
500,000 | New York City, NY IDA, Special Facilities Revenue Bonds, 5.25% (British Airways), 12/1/2032 | 501,500 | |
300,000 | New York City, NY IDA, Special Facilities Revenue Bonds, 5.50% (Terminal One Group Association), 1/1/2024 | 304,803 | |
500,000 | New York City, NY Municipal Water Finance Authority, Water and Sewer System Revenue Bonds (Series 2008AA), 5.00%, (United States Treasury PRF 6/15/2018@100), 6/15/2022 | 558,060 | |
455,000 | New York City, NY TFA, Future Tax Secured Subordinate Bonds (Series 2011C), 5.50%, 11/1/2035 | 535,999 | |
200,000 | 1 | New York City, NY, UT GO Bonds (Fiscal 1995 Series F Subseries F-4), 0.72%, 02/15/2020 | 199,726 |
55,000 | New York City, NY, UT GO Bonds (Series 2008 E-1), 6.25% (Original Issue Yield: 6.40%), 10/15/2028 | 63,795 | |
445,000 | New York City, NY, UT GO Bonds (Series 2008E-1), 6.25% (United States Treasury PRF 10/15/2018@100)/(Original Issue Yield: 6.40%), 10/15/2028 | 518,910 | |
400,000 | New York City, NY, UT GO Bonds (Series 2012B), 5.00%, 8/1/2027 | 465,520 | |
180,000 | New York Convention Center Development Corp., Revenue Refunding Bonds (Hotel Unit Fee Secured) (Series 2015), 5.00%, 11/15/2040 | 201,191 | |
500,000 | New York Liberty Development Corporation, Liberty Revenue Bonds (Series 2011), 5.75% (4 World Trade Center), 11/15/2051 | 576,690 | |
400,000 | New York Liberty Development Corporation, Revenue Refunding Bonds (Series 2012 Class 3), 5.00% (7 World Trade Center LLC), 3/15/2044 | 431,880 | |
500,000 | New York State Dormitory Authority, General Purpose Revenue Bonds (Series 2011C), 5.00% (New York State Personal Income Tax Revenue Bond Fund), 3/15/2026 | 580,550 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
New York—continued | |||
$500,000 | New York State Dormitory Authority, Revenue Bonds (Series 1998), 5.50% (Memorial Sloan-Kettering Cancer Center)/(National Public Finance Guarantee Corporation INS), 7/1/2023 | $609,480 | |
520,000 | New York State Dormitory Authority, Revenue Bonds (Series 2008C), 5.00% (New York State Personal Income Tax Revenue Bond Fund), 3/15/2026 | 570,310 | |
500,000 | New York State Dormitory Authority, Revenue Bonds (Series 2009C), 5.00% (School District Financing Program)/(Assured Guaranty Corp. INS), 10/1/2023 | 558,550 | |
500,000 | New York State Dormitory Authority, Revenue Bonds (Series 2010A), 5.00% (Cornell University), 7/1/2035 | 568,895 | |
350,000 | New York State Dormitory Authority, Revenue Bonds (Series 2012), 5.00% (Miriam Osborn Memorial Home Association), 7/1/2042 | 366,359 | |
400,000 | New York State Dormitory Authority, Revenue Bonds (Series 2012), 5.00% (Rochester, NY Institute of Technology), 7/1/2038 | 441,536 | |
100,000 | New York State Dormitory Authority, Revenue Bonds (Series 2012A), 5.00% (Catholic Health System Obligated Group), 7/1/2032 | 108,472 | |
500,000 | New York State Dormitory Authority, Revenue Bonds (Series 2012A), 5.00% (St. John's University), 7/1/2026 | 576,535 | |
250,000 | New York State Dormitory Authority, Revenue Bonds (Series 2012B), 5.00% (St. John's University), 7/1/2030 | 281,497 | |
200,000 | New York State Dormitory Authority, Revenue Bonds (Series 2013A), 5.00% (New York University), 7/1/2037 | 224,760 | |
400,000 | New York State Dormitory Authority, Revenue Bonds (Series 2014), 5.00% (Fordham University), 7/1/2030 | 451,392 | |
300,000 | New York State Dormitory Authority, Revenue Bonds (Series 2014), 5.00% (NYU Hospitals Center), 7/1/2034 | 333,204 | |
200,000 | 2,3 | New York State Dormitory Authority, Revenue Bonds (Series 2015), 5.00% (Orange Regional Medical Center), 12/1/2040 | 207,808 |
300,000 | New York State Dormitory Authority, Revenue Bonds (Series 2015A), 5.00% (Barnard College), 7/1/2035 | 340,629 | |
300,000 | New York State Dormitory Authority, Revenue Bonds (Series 2015A), 5.00% (North Shore-Long Island Jewish Obligated Group), 5/1/2036 | 332,466 | |
300,000 | New York State Dormitory Authority, Revenue Bonds (Series 2015A), 5.00% (The New School), 7/1/2040 | 334,509 | |
300,000 | New York State Environmental Facilities Corp., Clean Water & Drinking Water Revolving Funds Revenue Bonds (Series 2008A), 5.00%, 6/15/2029 | 331,704 | |
500,000 | New York State Local Government Assistance Corp., Senior Lien Revenue Refunding Bonds (Series 2008 A-5/6), 5.00%, 4/1/2020 | 567,245 | |
500,000 | New York State Local Government Assistance Corp., Subordinate Lien Revenue Refunding Bonds (Series 2010A), 5.00%, 4/1/2023 | 576,870 | |
220,000 | New York State Thruway Authority, General Revenue Bonds (Series 2012I), 5.00% (New York State Thruway Authority - General Revenue), 1/1/2028 | 250,092 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
New York—continued | |||
$500,000 | New York State Thruway Authority, General Revenue Bonds (Series 2014J), 5.00% (New York State Thruway Authority - General Revenue), 1/1/2027 | $583,660 | |
250,000 | New York State Urban Development Corp., Revenue Refunding Bonds (Series 1995), 5.70% (New York State)/(Original Issue Yield: 5.94%), 4/1/2020 | 277,088 | |
500,000 | New York State, UT GO Bonds (Series 2009A), 5.00% (Original Issue Yield: 5.24%), 2/15/2039 | 557,060 | |
500,000 | New York State, UT GO Bonds (Series 2011A), 5.00%, 2/15/2020 | 580,575 | |
335,000 | Niagara Area Development Corporation, NY, Solid Waste Disposal Facility Revenue Refunding Bonds (Series 2012B), 4.00% (Covanta Energy Corp.), 11/1/2024 | 337,616 | |
500,000 | Niagara Area Development Corporation, NY, Tax Exempt Revenue Bonds (Series 2012A), 5.00% (Niagara University), 5/1/2030 | 537,150 | |
500,000 | Niagara Frontier Transportation Authority, Airport Revenue Refunding Bonds (Series 2014A), 5.00% (Buffalo Niagara International Airport), 4/1/2029 | 544,725 | |
200,000 | Niagara Tobacco Asset Securitization Corporation, Tobacco Settlement Asset-Backed Bonds (Series 2014), 5.25%, 5/15/2040 | 220,688 | |
250,000 | Onondaga, NY Civic Development Corporation, Tax Exempt Revenue Bonds (Series 2014A), 5.125% (St. Joseph's Hospital Health Center)/(Original Issue Yield: 5.375%), 7/1/2031 | 261,838 | |
200,000 | Oyster Bay, NY, Public Improvement Refunding Bonds (Series 2014A), 5.00%, 1/15/2019 | 223,654 | |
450,000 | Syracuse, NY IDA, School Facility Revenue Bonds (Series 2008A), 5.00% (Syracuse CSD, NY)/(AGM INS), 5/1/2028 | 491,481 | |
300,000 | Tompkins County, NY Development Corporation, Continuing Care Retirement Community Revenue Bonds (Series 2014A), 5.00% (Kendal at Ithaca, Inc.), 7/1/2044 | 316,863 | |
500,000 | Triborough Bridge & Tunnel Authority, NY, General Revenue Bonds (Series 2008A), 5.00% (Original Issue Yield: 5.10%), 11/15/2037 | 543,050 | |
170,000 | Triborough Bridge & Tunnel Authority, NY, General Revenue Bonds (Series 2009A-2), 5.00% (United States Treasury PRF 11/15/2018@100), 11/15/2023 | 191,830 | |
290,000 | Triborough Bridge & Tunnel Authority, NY, General Revenue Bonds (Series 2009A-2), 5.00%, 11/15/2023 | 325,719 | |
400,000 | TSASC, Inc. NY, Tobacco Settlement Asset-Backed Bonds (Series 2006-1), 5.125% (Original Issue Yield: 5.35%), 6/1/2042 | 346,624 | |
TOTAL | 29,622,872 | ||
Puerto Rico—0.2% | |||
135,000 | Puerto Rico Public Building Authority, Revenue Bonds (Series 2002D), 5.25% (Commonwealth of Puerto Rico GTD)/(Original Issue Yield: 5.40%), 7/1/2027 | 78,449 | |
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $28,473,863) | 30,029,713 |
Principal Amount | Value | ||
SHORT-TERM MUNICIPAL—1.1%4 | |||
New York—1.1% | |||
$350,000 | New York City, NY TFA, (Fiscal 1998 Series C) Daily VRDNs (Morgan Stanley Bank, N.A. LOC), 0.10%, 9/1/2015 (AT AMORTIZED COST) | $350,000 | |
TOTAL MUNICIPAL INVESTMENTS—98.9% (IDENTIFIED COST $28,823,863)5 | 30,379,713 | ||
OTHER ASSETS AND LIABILITIES - NET—1.1%6 | 326,525 | ||
TOTAL NET ASSETS—100% | $30,706,238 |
1 | Floating rate note with current maturity or tender date shown. |
2 | Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At August 31, 2015, these restricted securities amounted to $207,808, which represented 0.7% of total net assets. |
3 | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Trustees (the “Trustees”). At August 31, 2015, these liquid restricted securities amounted to $207,808, which represented 0.7% of total net assets. |
4 | Current rate and next reset date shown for Variable Rate Demand Notes. |
5 | The cost of investments for federal tax purposes amounts to $29,071,421. |
6 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
AGM | —Assured Guaranty Municipal Corp. |
CSD | —Central School District |
GO | —General Obligation |
GTD | —Guaranteed |
IDA | —Industrial Development Authority |
IDC | —Industrial Development Corporation |
INS | —Insured |
LOC | —Letter of Credit |
PRF | —Pre-refunded |
TFA | —Transitional Finance Authority |
UT | —Unlimited Tax |
VRDNs | —Variable Rate Demand Notes |
Year Ended August 31 | 2015 | 2014 | 2013 | 2012 | 2011 |
Net Asset Value, Beginning of Period | $10.45 | $9.86 | $10.65 | $10.13 | $10.32 |
Income From Investment Operations: | |||||
Net investment income | 0.32 | 0.33 | 0.34 | 0.36 | 0.38 |
Net realized and unrealized gain (loss) on investments and futures contracts | (0.12) | 0.59 | (0.80) | 0.52 | (0.19) |
TOTAL FROM INVESTMENT OPERATIONS | 0.20 | 0.92 | (0.46) | 0.88 | 0.19 |
Less Distributions: | |||||
Distributions from net investment income | (0.32) | (0.33) | (0.33) | (0.36) | (0.38) |
Net Asset Value, End of Period | $10.33 | $10.45 | $9.86 | $10.65 | $10.13 |
Total Return1 | 1.94% | 9.46% | (4.50)% | 8.88% | 2.00% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.76% | 0.76% | 0.76% | 0.62% | 0.76% |
Net investment income | 3.10% | 3.26% | 3.15% | 3.49% | 3.88% |
Expense waiver/reimbursement2 | 0.65% | 0.70% | 0.53% | 1.18% | 1.12% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $28,576 | $28,022 | $27,534 | $33,073 | $29,108 |
Portfolio turnover | 17% | 27% | 7% | 19% | 11% |
1 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
2 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
Year Ended August 31 | 2015 | 2014 | 2013 | 2012 | 2011 |
Net Asset Value, Beginning of Period | $10.45 | $9.86 | $10.65 | $10.13 | $10.32 |
Income From Investment Operations: | |||||
Net Investment Income | 0.25 | 0.25 | 0.25 | 0.28 | 0.31 |
Net realized and unrealized gain (loss) on investments and futures contracts | (0.13) | 0.59 | (0.79) | 0.53 | (0.19) |
TOTAL FROM INVESTMENT OPERATIONS | 0.12 | 0.84 | (0.54) | 0.81 | 0.12 |
Less Distributions: | |||||
Distributions from net investment income | (0.24) | (0.25) | (0.25) | (0.29) | (0.31) |
Net Asset Value, End of Period | $10.33 | $10.45 | $9.86 | $10.65 | $10.13 |
Total Return1 | 1.18% | 8.65% | (5.21)% | 8.07% | 1.23% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.52% | 1.52% | 1.52% | 1.38% | 1.52% |
Net investment income | 2.34% | 2.50% | 2.37% | 2.72% | 3.10% |
Expense waiver/reimbursement2 | 0.65% | 0.69% | 0.52% | 1.17% | 1.10% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $2,130 | $2,562 | $2,661 | $3,022 | $3,471 |
Portfolio turnover | 17% | 27% | 7% | 19% | 11% |
1 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
2 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
Assets: | ||
Total investment in securities, at value (identified cost $28,823,863) | $30,379,713 | |
Cash | 63,808 | |
Income receivable | 357,597 | |
Receivable for shares sold | 2,356 | |
TOTAL ASSETS | 30,803,474 | |
Liabilities: | ||
Payable for shares redeemed | $27,222 | |
Payable for portfolio accounting fees | 23,750 | |
Income distribution payable | 14,436 | |
Payable for share registration costs | 10,226 | |
Payable for other service fees (Notes 2 and 5) | 6,650 | |
Payable for auditing fees | 4,200 | |
Payable for transfer agent fee | 4,015 | |
Payable for distribution services fee (Note 5) | 1,404 | |
Payable to adviser (Note 5) | 1,317 | |
Payable for administrative fee (Note 5) | 528 | |
Accrued expenses (Note 5) | 3,488 | |
TOTAL LIABILITIES | 97,236 | |
Net assets for 2,971,360 shares outstanding | $30,706,238 | |
Net Assets Consists of: | ||
Paid-in capital | $32,194,976 | |
Net unrealized appreciation of investments | 1,555,850 | |
Accumulated net realized loss on investments and futures contracts | (3,049,168) | |
Undistributed net investment income | 4,580 | |
TOTAL NET ASSETS | $30,706,238 | |
Net Assets Value, Offering Price and Redemption Proceeds Per Share | ||
Class A Shares: | ||
Net asset value per share ($28,576,142 ÷ 2,765,203 shares outstanding), no par value, unlimited shares authorized | $10.33 | |
Offering price per share (100/95.50 of $10.33) | $10.82 | |
Redemption proceeds per share | $10.33 | |
Class B Shares: | ||
Net asset value per share ($2,130,096 ÷ 206,157 shares outstanding), no par value, unlimited shares authorized | $10.33 | |
Offering price per share | $10.33 | |
Redemption proceeds per share (94.50/100 of $10.33) | $9.76 |
Investment Income: | |||
Interest | $1,191,794 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $123,319 | ||
Administrative fee (Note 5) | 24,127 | ||
Custodian fees | 5,363 | ||
Transfer agent fees | 24,619 | ||
Directors'/Trustees' fees (Note 5) | 1,743 | ||
Auditing fees | 30,851 | ||
Legal fees | 9,265 | ||
Distribution services fee (Note 5) | 17,656 | ||
Other service fees (Notes 2 and 5) | 76,964 | ||
Portfolio accounting fees | 90,238 | ||
Share registration costs | 30,524 | ||
Printing and postage | 14,167 | ||
Miscellaneous (Note 5) | 6,224 | ||
TOTAL EXPENSES | 455,060 | ||
Waiver and Reimbursements: | |||
Waiver of investment adviser fee (Note 5) | $(123,319) | ||
Reimbursements of other operating expenses (Notes 2 and 5) | (78,034) | ||
TOTAL WAIVER AND REIMBURSEMENTS | (201,353) | ||
Net expenses | 253,707 | ||
Net investment income | 938,087 | ||
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts: | |||
Net realized gain on investments | 185,036 | ||
Net realized loss on futures contracts | (87,380) | ||
Net change in unrealized appreciation of investments | (442,033) | ||
Net realized and unrealized loss on investments and futures contracts | (344,377) | ||
Change in net assets resulting from operations | $593,710 |
Year Ended August 31 | 2015 | 2014 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $938,087 | $932,422 |
Net realized gain (loss) on investments and futures contracts | 97,656 | (90,156) |
Net change in unrealized appreciation/depreciation of investments and futures contracts | (442,033) | 1,769,490 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 593,710 | 2,611,756 |
Distributions to Shareholders: | ||
Distributions from net investment income | ||
Class A Shares | (878,026) | (861,279) |
Class B Shares | (54,862) | (66,411) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (932,888) | (927,690) |
Share Transactions: | ||
Proceeds from sale of shares | 3,327,988 | 7,059,525 |
Net asset value of shares issued to shareholders in payment of distributions declared | 754,171 | 733,887 |
Cost of shares redeemed | (3,620,437) | (9,089,054) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 461,722 | (1,295,642) |
Change in net assets | 122,544 | 388,424 |
Net Assets: | ||
Beginning of period | 30,583,694 | 30,195,270 |
End of period (including undistributed net investment income of $4,580 and $3,637, respectively) | $30,706,238 | $30,583,694 |
■ | Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium), unless the issuer's creditworthiness is impaired or other factors indicate that amortized cost is not an accurate estimate of the investment's fair value, in which case it would be valued in the same manner as a longer-term security. |
■ | 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. |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | 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. |
Other Service Fees Incurred | Other Service Fees Reimbursed | |
Class A Shares | $71,078 | $(2,738) |
Class B Shares | 5,886 | — |
TOTAL | $76,964 | $(2,738) |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |
Futures | |
Interest rate contracts | $(87,380) |
Year Ended August 31 | 2015 | 2014 | ||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 283,489 | $2,957,954 | 628,818 | $6,401,405 |
Shares issued to shareholders in payment of distributions declared | 68,408 | 712,851 | 66,866 | 683,202 |
Shares redeemed | (269,148) | (2,803,515) | (806,005) | (8,127,678) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 82,749 | $867,290 | (110,321) | $(1,043,071) |
Year Ended August 31 | 2015 | 2014 | ||
Class B Shares: | Shares | Amount | Shares | Amount |
Shares sold | 35,306 | $370,034 | 64,975 | $658,120 |
Shares issued to shareholders in payment of distributions declared | 3,964 | 41,320 | 4,966 | 50,685 |
Shares redeemed | (78,342) | (816,922) | (94,657) | (961,376) |
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS | (39,072) | $(405,568) | (24,716) | $(252,571) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 43,677 | $461,722 | (135,037) | $(1,295,642) |
Increase (Decrease) | |
Undistributed Net Investment Income (Loss) | Accumulated Net Realized Gain (Loss) |
$(4,256) | $4,256 |
2015 | 2014 | |
Tax-exempt income | $920,173 | $927,690 |
Ordinary income | $12,715 | $— |
Undistributed tax-exempt income | $4,580 |
Net unrealized appreciation | $1,308,292 |
Capital loss carryforwards | $(2,801,610) |
Expiration Year | Short-Term | Long-Term | Total |
No Expiration | $58,967 | — | $58,967 |
2016 | $239,378 | NA | $239,378 |
2017 | $958,822 | NA | $958,822 |
2018 | $1,218,820 | NA | $1,218,820 |
2019 | $325,623 | NA | $325,623 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.150% | on the first $5 billion |
0.125% | on the next $5 billion |
0.100% | on the next $10 billion |
0.075% | on assets in excess of $20 billion |
Share Class Name | Percentage of Average Daily Net Assets of Class |
Class A Shares | 0.05% |
Class B Shares | 0.75% |
Distribution Services Fee Incurred | |
Class B Shares | $17,656 |
Purchases | $5,888,929 |
Sales | $4,983,837 |
October 26, 2015
Beginning Account Value 3/1/2015 | Ending Account Value 8/31/2015 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,001.30 | $3.83 |
Class B Shares | $1,000 | $997.60 | $7.65 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,021.37 | $3.87 |
Class B Shares | $1,000 | $1,017.54 | $7.73 |
1 | Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 0.76% |
Class B Shares | 1.52% |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John F. Donahue* Birth Date: July 28, 1924 Trustee Indefinite Term Began serving: August 1990 | Principal Occupations: Director or Trustee of the Federated Fund Family; Chairman and Director, Federated Investors, Inc.; Chairman of the Federated Fund Family's Executive Committee. Previous Positions: Chairman of the Federated Fund Family; Trustee, Federated Investment Management Company; Chairman and Director, Federated Investment Counseling. |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: August 1990 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Family; Director or Trustee of the Funds in the Federated Fund Family; President, Chief Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd. |
* | Family relationships and reasons for “interested” status: John F. Donahue is the father of J. Christopher Donahue; both are “interested” due to their beneficial ownership of shares of Federated Investors, Inc. and the positions they hold with Federated and its subsidiaries. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; Chairman and CEO, The Collins Group, Inc. (a private equity firm). Other Directorships Held: Director, Chair of the Compensation Committee, Audit Committee member, KLX Corp. Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director, FleetBoston Financial Corp.; Director and Audit Committee Member, Bank of America Corp. and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee of the Federated Fund Family; Retired. Other Directorships Held: Director, Chair of the Audit Committee, Governance Committee, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP. Mr. Hough is an Executive Committee member of the United States Golf Association, he serves on the President's Cabinet and Business School Board of Visitors for the University of Alabama and is on the Business School Board of Visitors for Wake Forest University. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Fund Family; Adjunct Professor of Law, Duquesne University School of Law. Other Directorships Held: Director, CONSOL Energy Inc. Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously served as: Associate General Secretary, Diocese of Pittsburgh; Professor of Law, Duquesne University School of Law and was a member of the Superior Court of Pennsylvania. Judge Lally-Green also holds the positions of: Member, Pennsylvania State Board of Education; Director, Saint Vincent College; Director and Chair, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Our Campaign for the Church Alive!, Inc.; Director, Pennsylvania Bar Institute; and Director, Cardinal Wuerl North Catholic High School, Inc. Judge Lally-Green has held the positions of: Director, Auberle; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; and Director, Catholic High Schools of the Diocese of Pittsburgh, Inc. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Peter E. Madden Birth Date: March 16, 1942 Trustee Indefinite Term Began serving: August 1991 | Principal Occupation: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Fund Family; Retired. Other Directorships Held: None. Qualifications: Mr. Madden has served in several business management, mutual fund services and directorship positions throughout his career. Mr. Madden previously served as President, Chief Operating Officer and Director, State Street Bank and Trust Company (custodian bank) and State Street Corporation (financial services). He was Director, VISA USA and VISA International and Chairman and Director, Massachusetts Bankers Association. Mr. Madden served as Director, Depository Trust Corporation and Director, The Boston Stock Exchange. Mr. Madden also served as a Representative to the Commonwealth of Massachusetts General Court. |
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Trustee Indefinite Term Began serving: January 1999 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Mansfield has served in several banking, business management and educational roles and directorship positions throughout his career. Mr. Mansfield previously served as Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly, Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University; Executive Vice President DVC Group, Inc. (marketing, communications and technology). |
Thomas M. O'Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: October 2006 | Principal Occupations: Director or Trustee, Vice Chair of the Audit Committee of the Federated Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O'Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O'Neill serves as Director, Medicines for Humanity and Director, The Golisano Children's Museum of Naples, Florida. Mr. O'Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey serves as Board Member, Epilepsy Foundation of Western Pennsylvania and Board member, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: June 1999 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
John W. McGonigle Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Officer since: August 1990 | Principal Occupations: Executive Vice President and Secretary of the Federated Fund Family; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc. Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp. and Edgewood Services, Inc.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Investors, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Richard B. Fisher Birth Date: May 17, 1923 VICE CHAIRMAN Officer since: August 2002 | Principal Occupations: Vice Chairman or Vice President of some of the Funds in the Federated Fund Family; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp. Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Family; Executive Vice President, Federated Investors, Inc.; Director and Chief Executive Officer, Federated Securities Corp. |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER Officer since: January 2005 | Principal Occupations: Mr. Germain is Chief Legal Officer of the Federated Fund Family. He is General Counsel and Vice President, Federated Investors, Inc.; President, Federated Administrative Services and Federated Administrative Services, Inc.; Vice President, Federated Securities Corp.; Secretary, Federated Private Asset Management, Inc.; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Fund Family; Vice President and Chief Compliance Officer of Federated Investors, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Investors, Inc. Prior to joining Federated, Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Robert J. Ostrowski Birth Date: April 26, 1963 CHIEF INVESTMENT OFFICER Officer since: February 2010 | Principal Occupations: Robert J. Ostrowski joined Federated in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated's taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund's Adviser in 2009 and served as a Senior Vice President of the Fund's Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University. |
J. Scott Albrecht Birth Date: June 1, 1960 VICE PRESIDENT Officer since: November 1999 Portfolio Manager since: March 1995 | Principal Occupations: J. Scott Albrecht has been the Fund's portfolio manager since March 1995. He is Vice President of the Trust with respect to the Fund. Mr. Albrecht joined Federated in 1989. He became a Senior Vice President of the Fund's Adviser in January 2005 and served as a Vice President of the Fund's Adviser from 1994 through 2004. He has been a Senior Portfolio Manager since 1997 and was a Portfolio Manager from 1994 to 1996. Mr. Albrecht has received the Chartered Financial Analyst designation and holds an M.S. in Public Management from Carnegie Mellon University. |
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 313923880
2015 ©Federated Investors, Inc.
Share Class | Ticker |
A | OMIAX |
F | OMIFX |
1 | Income may be subject to the alternative minimum tax for individuals and corporations (AMT). |
2 | Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the OH Index. |
3 | Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the MMOFA. |
4 | Duration is a measure of a security's price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities with shorter durations. For purposes of this Management's Discussion of Fund Performance, duration is determined using a third-party analytical system. |
5 | Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices. |
6 | Credit ratings pertain only to the securities in the portfolio and do not protect Fund shares against market risk. |
7 | The Fund's use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments. |
8 | Investment-grade securities and noninvestment-grade securities may either be: (a) rated by a nationally recognized statistical ratings organization or rating agency; or (b) unrated securities that the Fund's investment adviser (“Adviser”) believes are of comparable quality. The rating agencies that provided the ratings for rated securities include Standard and Poor's, Moody's Investor Services, Inc. and Fitch Rating Service. When ratings vary, the highest rating is used. Credit ratings of “AA” or better are considered to be high credit quality; credit ratings of “A” are considered high or medium/good quality; and credit ratings of “BBB” are considered to be medium/good credit quality, and the lowest category of investment-grade securities; credit ratings of “BB” and below are lower-rated, noninvestment-grade securities or junk bonds; and credit ratings of “CCC” or below are noninvestment-grade securities that have high default risk. Any credit quality breakdown does not give effect to the impact of any credit derivative investments made by the Fund. Credit ratings are an indication of the risk that a security will default. They do not protect a security from credit risk. Lower-rated bonds typically offer higher yields to help compensate investors for the increased risk associated with them. Among these risks are lower creditworthiness, greater price volatility, more risk to principal and income than with higher-rated securities and increased possibilities of default. |
Federated Ohio Municipal Income Fund - | Class A Shares | Class F Shares | NA | OH Index | OHIG3 Index | MMOFA |
F | F | NA | I | I | I | |
8/31/2005 | 9,550 | 9,900 | 10,000 | 10,000 | 10,000 | |
8/31/2006 | 9,772 | 10,160 | 10,329 | 10,327 | 10,209 | |
8/31/2007 | 9,865 | 10,284 | 10,605 | 10,575 | 10,369 | |
8/31/2008 | 10,039 | 10,497 | 10,768 | 10,746 | 10,664 | |
8/31/2009 | 10,226 | 10,686 | 11,234 | 11,364 | 11,082 | |
8/31/2010 | 11,079 | 11,561 | 12,242 | 12,437 | 12,022 | |
8/31/2011 | 11,305 | 11,779 | 12,548 | 12,794 | 12,163 | |
8/31/2012 | 12,290 | 12,787 | 13,861 | 14,064 | 13,195 | |
8/31/2013 | 11,832 | 12,293 | 13,298 | 13,469 | 12,540 | |
8/31/2014 | 12,897 | 13,379 | 14,955 | 15,243 | 13,729 | |
8/31/2015 | 13,155 | 13,624 | 15,481 | 15,745 | 14,016 |
■ | Total returns shown for Class A Shares include the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550). |
■ | Total returns shown for Class F Shares include the maximum sales charge of 1.00% ($10,000 investment minus $100 sales charge = $9,900), and maximum contingent deferred sales charge of 1.00% as applicable. |
1 Year | 5 Years | 10 Years | |
Class A Shares | -2.58% | 2.56% | 2.78%* |
Class F Shares | -0.12% | 3.14% | 3.14% |
OH Index | 3.52% | 4.81% | 4.47% |
OHIG3 Index | 3.29% | 4.83% | 4.64% |
MMOFA | 2.13% | 3.23% | 3.61% |
* | The Fund's Class A Shares commenced operations on November 18, 2008. For the period prior to the commencement of operations of the Class A Shares, the performance information shown is for the Fund's Class F Shares adjusted to reflect the sales charges and expenses of the Class A Shares. |
1 | Represents a hypothetical investment of $10,000 in the Fund after deducting applicable sales charges: for Class A Shares, the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550); for Class F Shares, the maximum sales charge of 1.00% ($10,000 investment minus $100 sales charge = $9,900); and the maximum contingent deferred sales charge is 1.00% on any redemption less than four years from the purchase date. The Fund's performance assumes the reinvestment of all dividends and distributions. The OH Index, OHIG3 Index and MMOFA have been adjusted to reflect reinvestment of dividends on securities in the index and average. |
2 | The OH Index consists of bonds in the S&P Municipal Bond Index (Main Index) that have been issued by the state of Ohio or local governments or state or local government entities within Ohio. The Main Index is a broad, comprehensive, market value-weighted index composed of approximately 55,000 bond issues that are exempt from U.S. federal income taxes or subject to the alternative minimum tax (AMT). Eligibility criteria for inclusion in the Main Index include, but are not limited to: the bond issuer must be a state (including the Commonwealth of Puerto Rico and U.S. territories) or local government or a state or local government entity where interest on the bond is exempt from U.S. federal income taxes or subject to the AMT; the bond must be held by a mutual fund for which Standard & Poor's Securities Evaluations, Inc. provides prices; it must be denominated in U.S. dollars and have a minimum par amount of $2 million; and the bond must have a minimum term to maturity and/or call date greater than or equal to one calendar month. The Main Index is rebalanced monthly. The Ohio Index is not adjusted to reflect sales charges, expenses and other fees that the Securities and Exchange Commission (SEC) requires to be reflected in the Fund's performance. The OH Index is unmanaged and, unlike the Fund, is not affected by cashflows. It is not possible to invest directly in an index. |
3 | The OHIG3 Index represents the portion of the OH Index composed solely of bonds that are rated BBB-/Baa3 or higher with remaining maturities of more than three years. The OHIG3 Index is not adjusted to reflect sales charges, expenses and other fees that the SEC requires to be reflected in the Fund's performance. The OHIG3 Index is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. |
4 | Morningstar figures represent the average of the total returns reported by all the mutual funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. |
Sector Composition | Percentage of Total Net Assets |
Education | 15.9% |
Hospital | 14.2% |
General Obligation—Local | 13.8% |
Pre-refunded | 12.0% |
Dedicated Tax | 10.2% |
Water & Sewer | 6.3% |
Public Power | 5.6% |
General Obligation—State | 3.9% |
Airport | 3.6% |
Toll Road | 3.3% |
Other2 | 10.2% |
Other Assets and Liabilities—Net3 | 1.0% |
TOTAL | 100.0% |
1 | Sector classifications, and the assignment 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. Pre-refunded securities are those whose debt service is paid from escrowed assets, usually U.S. government securities. |
2 | For purposes of this table, sector classifications constitute 88.8% 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. |
Principal Amount | Value | ||
MUNICIPAL BONDS—98.3% | |||
Guam—1.0% | |||
$1,000,000 | Guam Government Business Privilege Tax, Business Privilege Tax Bonds (Series 2012B), 5.00%, 1/1/2037 | $1,085,090 | |
560,000 | Guam Government Limited Obligation (Section 30), Bonds (Series 2009A), 5.625% (Original Issue Yield: 5.875%), 12/1/2029 | 618,218 | |
TOTAL | 1,703,308 | ||
Ohio—97.1% | |||
2,000,000 | Akron, Bath & Copley, OH Joint Township Hospital District, Hospital Facilities Revenue Bonds (Series 2012), 5.00% (Akron General Health System), 1/1/2031 | 2,118,840 | |
2,000,000 | Akron, Bath & Copley, OH Joint Township Hospital District, Hospital Improvement & Refunding Revenue Bonds (Series 2012), 5.00% (Children's Hospital Medical Center, Akron), 11/15/2032 | 2,197,880 | |
1,000,000 | Akron, OH, Income Tax Revenue Refunding Bonds (Series 2012A), 5.00% (Akron, OH Community Learning Centers), 12/1/2031 | 1,131,130 | |
2,000,000 | Akron, OH, Income Tax Revenue Refunding Bonds (Series 2012A), 5.00% (Akron, OH Community Learning Centers), 12/1/2033 | 2,249,180 | |
500,000 | Akron, OH, Revenue Refunding Bonds (Series A), 5.00% (Akron, OH Community Learning Centers), 12/1/2023 | 585,955 | |
2,000,000 | Allen County, OH, Hospital Facilities Revenue Bonds (Series 2010B), 5.25% (Mercy Health), 9/1/2027 | 2,280,220 | |
1,000,000 | Allen County, OH, Hospital Facilities Revenue Refunding Bonds, 5.00% (Mercy Health), 11/1/2043 | 1,091,290 | |
1,000,000 | American Municipal Power-Ohio, Inc., Refunding Revenue Bonds (Series 2015A), 5.00% (American Municipal Power, Prairie State Energy Campus Project), 2/15/2042 | 1,101,260 | |
165,000 | American Municipal Power-Ohio, Inc., Revenue Bonds (Series 2008A), 5.00% (American Municipal Power, Prairie State Energy Campus Project), 2/15/2016 | 168,523 | |
115,000 | American Municipal Power-Ohio, Inc., Revenue Bonds (Series 2008A), 5.25% (American Municipal Power, Prairie State Energy Campus Project), 2/15/2028 | 125,305 | |
1,885,000 | American Municipal Power-Ohio, Inc., Revenue Bonds (Series 2008A), 5.25% (American Municipal Power, Prairie State Energy Campus Project)/(United States Treasury PRF 2/15/2018@100), 2/15/2028 | 2,089,051 | |
2,250,000 | American Municipal Power-Ohio, Inc., Revenue Bonds (Series 2015A), 5.00% (American Municipal Power, Prairie State Energy Campus Project), 2/15/2029 | 2,565,810 | |
465,000 | Beavercreek, OH Local School District, UT GO Bonds, 6.60% (National Public Finance Guarantee Corporation INS), 12/1/2015 | 471,487 | |
2,000,000 | Buckeye Tobacco Settlement Financing Authority, OH, Tobacco Settlement Asset-Backed Bonds (Series A-2), 6.50%, 6/1/2047 | 1,737,540 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Ohio—continued | |||
$1,000,000 | Centerville, OH, Health Care Fixed Rate Revenue Bonds (Series 2007A), 6.00% (Bethany Lutheran Village), 11/1/2038 | $1,041,260 | |
1,000,000 | Cincinnati City School District, OH, UT GO Bonds, 5.00% (National Public Finance Guarantee Corporation INS), 12/1/2017 | 1,094,860 | |
2,000,000 | Cincinnati, OH Water System, Revenue Bonds (Series 2015A), 5.00%, 12/1/2040 | 2,301,060 | |
2,000,000 | Cincinnati, OH, UT Various Purpose GO Improvement & Refunding Bonds (Series 2014A), 5.00%, 12/1/2032 | 2,255,720 | |
2,105,000 | Cleveland Heights & University Heights, OH City School District, School Improvement UT GO Bonds (Series 2014), 5.00%, 12/1/2051 | 2,251,108 | |
1,500,000 | Cleveland State University, OH, General Receipts Bonds (Series 2012), 5.00%, 6/1/2037 | 1,649,100 | |
1,980,000 | Cleveland, OH Airport System, Revenue Bonds (Series 2006A), 5.25% (Assured Guaranty Corp. INS), 1/1/2018 | 2,157,705 | |
365,000 | Cleveland, OH Airport System, Revenue Bonds (Series 2009C), 5.00% (Assured Guaranty Corp. INS), 1/1/2023 | 400,624 | |
2,200,000 | Cleveland, OH Airport System, Revenue Bonds, 5.00% (AGM INS), 1/1/2022 | 2,313,828 | |
1,000,000 | Cleveland, OH Municipal School District, School Improvement UT GO Bonds (Series 2015A), 5.00% (Ohio School District Credit Enhancement GTD), 12/1/2033 | 1,122,640 | |
1,550,000 | Cleveland, OH Public Power System, Revenue Bonds (Series 2008B-1), 5.00%, 11/15/2038 | 1,675,751 | |
2,685,000 | Cleveland, OH Public Power System, Revenue Refunding Bonds (Series 2010), 5.00%, 11/15/2017 | 2,918,353 | |
500,000 | Cleveland, OH Water, Revenue Bonds (Series 2007P), 5.00%, 1/1/2022 | 547,590 | |
1,000,000 | Cleveland, OH Water, Senior Lien Revenue Bonds (Series 2012X), 5.00%, 1/1/2042 | 1,119,810 | |
245,000 | Cleveland, OH Water, Water Revenue Bonds (Series 2007P), 5.00%, 1/1/2026 | 267,721 | |
2,000,000 | Cleveland, OH, LT GO Bonds, 5.50% (AGM INS), 10/1/2019 | 2,315,660 | |
3,000,000 | Cleveland-Cuyahoga County, OH Port Authority, Revenue Bonds (Series 2014), 5.00% (Euclid Avenue Development Corporation), 8/1/2039 | 3,298,620 | |
1,000,000 | Columbus, OH City School District, School Facilities Construction & Improvement UT GO Bonds (Series 2009), 5.00% (United States Treasury PRF 6/1/2019@100), 12/1/2027 | 1,140,230 | |
1,000,000 | Columbus, OH Sewer System, Revenue Refunding Bonds (Series 2014), 5.00%, 6/1/2031 | 1,169,260 | |
505,000 | Columbus, OH, LT GO Refunding Bonds, 5.00%, 7/1/2023 | 602,909 | |
500,000 | Columbus, OH, UT GO Refunding Bonds (Series 1), 5.00%, 7/1/2028 | 585,695 | |
1,500,000 | Columbus, OH, Various Purpose LT GO Bonds (Series 2013B), 5.00%, 8/15/2028 | 1,759,875 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Ohio—continued | |||
$1,340,000 | Cuyahoga County, OH Sales Tax, Various Purpose Sales Tax Revenue Bonds (Series 2014), 5.00%, 12/1/2034 | $1,549,161 | |
200,000 | Cuyahoga County, OH, LT GO Bonds (Series 2009A), 5.00% (United States Treasury PRF 12/1/2019@100), 12/1/2021 | 231,694 | |
1,000,000 | Cuyahoga County, OH, LT GO Convention Hotel Project, 5.00%, 12/1/2036 | 1,106,600 | |
220,000 | Cuyahoga, OH CCD, General Receipts Revenue Bonds (Series 2012D), 5.00%, 8/1/2026 | 254,417 | |
2,000,000 | Dayton CSD, OH, School Facilities Construction & Improvement UT GO Bonds (Series 2013A), 5.00% (Ohio School District Credit Enhancement GTD), 11/1/2021 | 2,343,200 | |
1,335,000 | Dayton, OH Airport, Airport Revenue Refunding Bonds (Series 2014A), 5.00% (James M. Cox Dayton International Airport )/(AGM INS), 12/1/2026 | 1,494,893 | |
265,000 | Dayton-Montgomery County, OH Port Authority, Revenue Bonds (Series A), 5.00% (Dayton Regional Bond Fund), 11/15/2017 | 265,366 | |
2,000,000 | Fairfield County, OH, LT GO Bonds (Series 2015), 4.00%, 12/1/2040 | 2,016,860 | |
3,000,000 | Franklin County, OH Convention Facilities Authority, Revenue Bonds, 5.00% (AMBAC INS)/(United States Treasury PRF 12/1/2015@100), 12/1/2026 | 3,035,280 | |
2,000,000 | Franklin County, OH Convention Facilities Authority, Tax & Lease Revenue Anticipation & Refunding Bonds (Series 2014), 5.00%, 12/1/2035 | 2,258,820 | |
2,400,000 | Franklin County, OH Health Care Facilities, Improvement Revenue Bonds (Series 2010A), 5.625% (Ohio Presbyterian Retirement Services)/(Original Issue Yield: 5.75%), 7/1/2026 | 2,579,568 | |
1,000,000 | Franklin County, OH Health Care Facilities, Refunding & Improvement Bonds (Series 2014), 5.00% (Friendship Village of Dublin, OH, Inc.), 11/15/2044 | 1,067,580 | |
1,000,000 | Franklin County, OH Hospital Facility Authority, Hospital Facilities Revenue Bonds (Series 2015), 5.00% (OhioHealth Corp,), 5/15/2040 | 1,110,310 | |
1,535,000 | Franklin County, OH Hospital Facility Authority, Hospital Improvement Revenue Bonds (Series 2009), 5.00% (Nationwide Children's Hospital)/(Original Issue Yield: 5.11%), 11/1/2034 | 1,694,226 | |
2,165,000 | Franklin County, OH, Various Purpose LT GO Bonds, 5.00% (United States Treasury PRF 12/1/2017@100), 12/1/2031 | 2,371,909 | |
2,000,000 | Hamilton County, OH Convention Facilities Authority, Convention Facilities Authority Revenue & Refunding Bonds (Series 2014), 5.00%, 12/1/2032 | 2,237,580 | |
2,850,000 | Hamilton County, OH, Sales Tax Revenue Refunding Bonds (Series 2011A), 5.00%, 12/1/2032 | 3,140,073 | |
280,000 | Hamilton, OH, LT GO Various Purpose Bonds, 5.00% (Assured Guaranty Corp. INS), 11/1/2021 | 313,944 | |
300,000 | Hamilton, OH, LT GO Various Purpose Refunding Bonds, 5.00%, 11/1/2021 | 335,349 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Ohio—continued | |||
$1,555,000 | Jobs Ohio Beverage System, OH, Statewide Senior Lien Liquor Profits Tax-Exempt Revenue Bonds (Series 2013A), 5.00%, 1/1/2038 | $1,730,155 | |
2,000,000 | Kent State University, OH, General Receipts Bonds (Series 2009B), 5.00% (Assured Guaranty Corp. INS), 5/1/2028 | 2,218,460 | |
615,000 | Kent State University, OH, General Receipts Revenue Bonds (Series 2009B), 5.00% (Assured Guaranty Corp. INS), 5/1/2023 | 689,286 | |
1,860,000 | Kettering, OH City School District, UT GO Bonds, 4.75% (AGM INS), 12/1/2020 | 1,990,739 | |
400,000 | Kettering, OH City School District, UT GO School Improvement Refunding Bonds, 4.75% (AGM INS), 12/1/2022 | 427,376 | |
1,500,000 | Lorain County, OH Port Authority, Recovery Zone Facility Revenue Bonds (Series 2010), 6.75% (United States Steel Corp.), 12/1/2040 | 1,626,300 | |
1,000,000 | Lorain County, OH, Hospital Revenue Bonds (Series 2006H), 5.00% (Mercy Health)/(Assured Guaranty Corp. INS), 2/1/2024 | 1,086,170 | |
2,000,000 | Lucas County, OH, Hospital Revenue Bonds (Series 2011A), 6.50% (ProMedica Healthcare Obligated Group), 11/15/2037 | 2,466,180 | |
1,090,000 | Marysville, OH Wastewater Treatment System, Revenue Bonds, 4.75% (Assured Guaranty Corp. INS)/(Original Issue Yield: 4.80%), 12/1/2046 | 1,133,251 | |
1,000,000 | Miami County, OH, Hospital Facilities Revenue & Refunding Bonds (Series 2006), 5.25% (Upper Valley Medical Center, OH), 5/15/2021 | 1,028,280 | |
2,000,000 | Miami University, OH, General Receipts Revenue & Refunding Bonds (Series 2011), 5.00%, 9/1/2031 | 2,301,360 | |
500,000 | Miami University, OH, General Receipts Revenue & Refunding Bonds (Series 2011), 5.00%, 9/1/2036 | 568,280 | |
500,000 | Miami University, OH, Revenue Refunding Bonds, 5.00%, 9/1/2026 | 572,140 | |
1,600,000 | Miamisburg, OH City School District, School Facilities Construction & Improvement UT GO Bonds, 5.00%, 12/1/2024 | 1,787,760 | |
500,000 | Middletown, OH, LT GO Refunding and Improvement Bonds, 5.00% (AGM INS), 12/1/2021 | 552,810 | |
1,000,000 | Montgomery County, OH, Revenue Bonds (Series 2008D), 6.125% (Catholic Health Initiatives)/(Original Issue Yield: 6.30%), 10/1/2028 | 1,130,960 | |
1,000,000 | Muskingum County, OH, Hospital Facilities Revenue Bonds (Series 2013), 5.00% (Genesis Healthcare Corp.)/(Original Issue Yield: 5.08%), 2/15/2044 | 1,036,480 | |
2,000,000 | Northeast OH Regional Sewer District, Wastewater Improvement Revenue Bonds (Series 2013), 5.00%, 11/15/2038 | 2,254,220 | |
1,000,000 | Northeast OH Regional Sewer District, Wastewater Improvement Revenue Refunding Bonds (Series 2014), 5.00%, 11/15/2049 | 1,115,890 | |
1,415,000 | Oak Hills, OH Local School District, UT GO Bonds, 5.00% (United States Treasury PRF 12/1/2015@100)/(AGM INS), 12/1/2025 | 1,432,093 | |
195,000 | Ohio HFA SFM, Revenue Bond (Series 1), 3.25%, 5/1/2020 | 193,805 | |
2,000,000 | Ohio State Air Quality Development Authority, Air Quality Revenue Refunding Bonds (Series 2009B), 5.80% (Columbus Southern Power Company), 12/1/2038 | 2,202,980 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Ohio—continued | |||
$1,150,000 | Ohio State Air Quality Development Authority, Environmental Improvement Revenue Bonds (Series 2010), 5.00% (Buckeye Power, Inc.), 12/1/2021 | $1,286,816 | |
1,455,000 | Ohio State Air Quality Development Authority, Revenue Bonds (Series 2009A), 5.70% (FirstEnergy Solutions Corp.), 8/1/2020 | 1,584,393 | |
400,000 | Ohio State Building Authority, Administration Building Fund Revenue Bonds (Series 2009A), 5.00%, 10/1/2023 | 447,880 | |
2,000,000 | Ohio State Higher Educational Facility Commission, Higher Educational Facility Revenue Bonds (Series 2015), 5.00% (Kenyon College, OH), 7/1/2041 | 2,207,380 | |
1,875,000 | Ohio State Higher Educational Facility Commission, Hospital Revenue Bonds (Series 2007A), 5.25% (University Hospitals Health System, Inc.), 1/15/2046 | 1,933,275 | |
1,000,000 | Ohio State Higher Educational Facility Commission, Revenue Bonds (Series 2011A), 5.375% (University of Dayton)/(Original Issue Yield: 5.48%), 12/1/2030 | 1,143,360 | |
1,830,000 | Ohio State Higher Educational Facility Commission, Revenue Bonds (Series 2013), 5.00% (University of Dayton), 12/1/2031 | 2,051,613 | |
300,000 | Ohio State Higher Educational Facility Commission, Revenue Bonds, 4.75% (Mount Union College), 10/1/2016 | 312,636 | |
245,000 | Ohio State Higher Educational Facility Commission, Revenue Bonds, 5.00% (Kenyon College, OH), 7/1/2041 | 251,907 | |
1,755,000 | Ohio State Higher Educational Facility Commission, Revenue Bonds, 5.00% (Kenyon College, OH)/(United States Treasury PRF 7/1/2016@100), 7/1/2041 | 1,823,901 | |
1,000,000 | Ohio State Higher Educational Facility Commission, Revenue Refunding Bonds (Series 2008C), 5.00% (Case Western Reserve University, OH), 12/1/2029 | 1,073,950 | |
2,000,000 | Ohio State Treasurer Private Activity, Revenue Bonds (Series 2015), 5.00% (Portsmouth Gateway Group LLC), 12/31/2039 | 2,141,020 | |
240,000 | Ohio State Turnpike & Infrastructure Commission, Revenue Refunding Bonds (Series 2009A), 5.00%, 2/15/2021 | 265,082 | |
1,000,000 | Ohio State Turnpike & Infrastructure Commission, Revenue Refunding Bonds (Series 2010A), 5.00%, 2/15/2031 | 1,124,840 | |
1,000,000 | Ohio State Turnpike & Infrastructure Commission, Turnpike Junior Lien Revenue Bonds (Series 2013A-1), 5.00% (Original Issue Yield: 5.05%), 2/15/2048 | 1,084,290 | |
1,000,000 | Ohio State Turnpike & Infrastructure Commission, Turnpike Revenue Refunding Bonds (Series 1998A), 5.50% (National Re Holdings Corp. INS), 2/15/2024 | 1,246,360 | |
190,000 | Ohio State University, General Receipts Bonds (Series 2008A), 5.00% (United States Treasury PRF 12/1/2018@100), 12/1/2027 | 214,423 | |
1,810,000 | Ohio State University, General Receipts Bonds (Series 2008A), 5.00%, 12/1/2027 | 2,022,403 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Ohio—continued | |||
$340,000 | Ohio State University, Revenue Bonds (Series 2008A), 4.25%, 12/1/2024 | $361,002 | |
255,000 | Ohio State University, Revenue Bonds (Series 2008A), 5.00%, 12/1/2026 | 285,271 | |
1,000,000 | Ohio State University, Special Purpose General Receipts Bonds (Series 2013A), 5.00%, 6/1/2038 | 1,116,820 | |
1,000,000 | Ohio State Water Development Authority, Drinking Water Assistance Fund Refunding Revenue Bonds (Series 2008), 5.00% (United States Treasury PRF 6/1/2018@100), 12/1/2021 | 1,112,260 | |
1,000,000 | Ohio State Water Development Authority, Revenue Refunding Bonds (Series 2008), 5.00% (United States Treasury PRF 6/1/2018@100), 6/1/2028 | 1,112,260 | |
1,500,000 | Ohio State, Common Schools UT GO Bonds (Series 2011B), 5.00%, 9/15/2024 | 1,746,105 | |
1,500,000 | Ohio State, Hospital Revenue Bonds, 5.00% (Cleveland Clinic), 1/1/2031 | 1,691,175 | |
1,200,000 | Ohio State, Hospital Revenue Refunding Bonds (Series 2008A), 5.25% (Cleveland Clinic)/(Original Issue Yield: 5.37%), 1/1/2033 | 1,299,324 | |
2,000,000 | Ohio State, Infrastructure Improvement UT GO Bonds (Series 2007A), 4.75%, 9/1/2027 | 2,108,360 | |
205,000 | Ohio State, Infrastructure Improvement UT GO Bonds (Series 2008A), 5.375% (Original Issue Yield: 5.42%), 9/1/2023 | 227,275 | |
1,695,000 | Ohio State, Infrastructure Improvement UT GO Bonds (Series 2008A), 5.375% (Original Issue Yield: 5.50%), 9/1/2028 | 1,873,416 | |
890,000 | Ohio State, Infrastructure Improvement UT GO Bonds (Series 2008A), 5.375% (United States Treasury PRF 3/1/2018@100)/(Original Issue Yield: 5.50%), 9/1/2028 | 990,214 | |
1,000,000 | Ohio State, Major New State Infrastructure Project Revenue Bonds (Series 2008-1), 5.75% (United States Treasury PRF 6/15/2018@100), 6/15/2019 | 1,133,850 | |
2,310,000 | Ohio State, UT GO Bonds, 4.25%, 5/1/2016 | 2,372,670 | |
525,000 | Ohio State, UT GO Conservation Project Bonds (Series 2011A), 5.25%, 9/1/2022 | 613,326 | |
2,000,000 | Ohio University, General Receipts Bonds (Series 2013), 5.00%, 12/1/2043 | 2,205,340 | |
500,000 | 1,2 | Port Authority for Columbiana County, OH, Solid Waste Facility Revenue Bonds (Series 2004A), 7.25% (Apex Environmental LLC)/(Original Issue Yield: 7.30%), 8/1/2034 | 250,000 |
68,499 | 1,2 | Port Authority for Columbiana County, OH, Solid Waste Facility Revenue Bonds (Series 2012D), 10.82% (Apex Environmental LLC), 8/1/2034 | 34,250 |
1,190,000 | Rickenbacker, OH Port Authority, Capital Funding Revenue Bonds (Series 2002A), 5.375% (OASBO Expanded Asset Pooled Financing Program)/(Original Issue Yield: 5.60%), 1/1/2032 | 1,247,477 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Ohio—continued | |||
$470,000 | River Valley, OH Local School District, UT GO School Facilities Bonds, 5.25% (School District Credit Program GTD), 11/1/2023 | $571,826 | |
700,000 | South Euclid, OH, LT GO Real Estate Acquisition and Urban Development Bonds, 5.00%, 6/1/2032 | 784,938 | |
1,250,000 | Southeastern Ohio Port Authority, OH, Hospital Facilities Revenue Refunding & Improvement Bonds (Series 2012), 6.00% (Memorial Health System, OH)/(Original Issue Yield: 6.02%), 12/1/2042 | 1,343,988 | |
500,000 | Switzerland, OH Local School District, UT GO School Improvement Refunding Bonds, 5.00% (School District Credit Program GTD), 12/1/2027 | 572,915 | |
1,000,000 | Toledo, OH Water System, Revenue Improvement and Refunding Bonds (Series 2013), 5.00%, 11/15/2032 | 1,128,570 | |
1,500,000 | Toledo-Lucas County, OH Port Authority, Revenue Bonds, 6.45% (CSX Corp.), 12/15/2021 | 1,860,945 | |
1,265,000 | Toledo-Lucas County, OH Port Authority, Special Assessment Revenue Bonds, 5.25% (Crocker Park Public Improvement Project)/(Original Issue Yield: 5.37%), 12/1/2023 | 1,270,667 | |
2,000,000 | University of Akron, OH, General Receipts Bonds (Series 2008B), 5.25% (United States Treasury PRF 1/1/2018@100), 1/1/2027 | 2,207,280 | |
1,020,000 | University of Akron, OH, General Receipts Bonds (Series 2015A), 5.00%, 1/1/2030 | 1,153,018 | |
1,000,000 | University of Cincinnati, OH, General Receipts Bonds (Series 2014C), 5.00%, 6/1/2041 | 1,121,810 | |
1,000,000 | 3 | University of Cincinnati, OH, General Receipts Floating Rate Notes (Series 2015A), 0.582%, 06/01/2018 | 1,001,300 |
TOTAL | 169,867,836 | ||
Puerto Rico—0.2% | |||
1,000,000 | Puerto Rico Government Development Bank (GDB), Senior Notes (Series 2006B), 5.00%, 12/1/2017 | 357,480 | |
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $165,456,059) | 171,928,624 | ||
SHORT-TERM MUNICIPALS—0.7%4 | |||
Ohio—0.7% | |||
1,300,000 | Montgomery County, OH, (Series 2008B) Daily VRDNs (Miami Valley Hospital)/(Barclays Bank PLC LIQ), 0.019%, 9/1/2015 (AT AMORTIZED COST) | 1,300,000 | |
TOTAL INVESTMENTS—99.0% (IDENTIFIED COST $166,756,059)5 | 173,228,624 | ||
OTHER ASSETS AND LIABILITIES - NET—1.0%6 | 1,689,670 | ||
TOTAL NET ASSETS—100% | $174,918,294 |
Description | Number of Contracts | Notional Value | Expiration Date | Unrealized Depreciation |
7U.S. Treasury Notes, 5-Year Long Futures | 75 | $8,957,813 | December 2015 | $(13,594) |
Liabilities—Net.”
1 | Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At August 31, 2015, these restricted securities amounted to $284,250, which represented 0.2% of total net assets. |
2 | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Trustees (the “Trustees”). At August 31, 2015, these liquid restricted securities amounted to $284,250, which represented 0.2% of total net assets. |
3 | Floating rate note with current maturity date shown. |
4 | Current rate and next reset date shown for Variable Rate Demand Notes. |
5 | The cost of investments for federal tax purposes amounts to $166,667,551. |
6 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
7 | Non-income-producing security. |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
Municipal Bonds | $— | $171,928,624 | $— | $171,928,624 |
Short-Term Municipals | — | 1,300,000 | — | 1,300,000 |
TOTAL SECURITIES | $— | $173,228,624 | $— | $173,228,624 |
OTHER FINANCIAL INSTRUMENTS* | $(13,594) | $— | $— | $(13,594) |
* | Other financial instruments include futures contracts. |
AGM | —Assured Guaranty Municipal Corp. |
AMBAC | —American Municipal Bond Assurance Corporation |
CCD | —Community College District |
COL | —Collateralized |
CSD | —Central School District |
GO | —General Obligation |
GTD | —Guaranteed |
HFA | —Housing Finance Authority |
INS | —Insured |
LIQ | —Liquidity Agreement |
LT | —Limited Tax |
PRF | —Pre-refunded |
SFM | —Single Family Mortgage |
UT | —Unlimited Tax |
VRDNs | —Variable Rate Demand Notes |
Year Ended August 31 | 2015 | 2014 | 2013 | 2012 | 2011 |
Net Asset Value, Beginning of Period | $11.28 | $10.70 | $11.47 | $10.93 | $11.14 |
Income From Investment Operations: | |||||
Net investment income | 0.36 | 0.36 | 0.38 | 0.38 | 0.42 |
Net realized and unrealized gain (loss) on investments | (0.14) | 0.59 | (0.79) | 0.56 | (0.21) |
TOTAL FROM INVESTMENT OPERATIONS | (0.22) | 0.95 | (0.41) | 0.94 | 0.21 |
Less Distributions: | |||||
Distributions from net investment income | (0.34) | (0.37) | (0.36) | (0.40) | (0.42) |
Net Asset Value, End of Period | $11.16 | $11.28 | $10.70 | $11.47 | $10.93 |
Total Return1 | 2.00% | 9.00% | (3.73)% | 8.72% | 2.04% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% |
Net investment income | 3.16% | 3.32% | 3.28% | 3.40% | 3.87% |
Expense waiver/reimbursement2 | 0.14% | 0.16% | 0.14% | 0.18% | 0.18% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $67,469 | $69,461 | $45,131 | $53,165 | $50,990 |
Portfolio turnover | 25% | 8% | 15% | 17% | 9% |
1 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
2 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
Year Ended August 31 | 2015 | 2014 | 2013 | 2012 | 2011 |
Net Asset Value, Beginning of Period | $11.28 | $10.70 | $11.47 | $10.93 | $11.14 |
Income from Investment Operations: | |||||
Net investment income | 0.34 | 0.35 | 0.36 | 0.36 | 0.40 |
Net realized and unrealized gain (loss) on investments | (0.13) | 0.58 | (0.79) | 0.56 | (0.21) |
TOTAL FROM INVESTMENT OPERATIONS | 0.21 | 0.93 | (0.43) | 0.92 | 0.19 |
Less Distributions: | |||||
Distributions from net investment income | (0.33) | (0.35) | (0.34) | (0.38) | (0.40) |
Net Asset Value, End of Period | $11.16 | $11.28 | $10.70 | $11.47 | $10.93 |
Total Return1 | 1.84% | 8.84% | (3.87)% | 8.56% | 1.89% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.90% | 0.90% | 0.90% | 0.90% | 0.90% |
Net investment income | 3.01% | 3.19% | 3.13% | 3.25% | 3.70% |
Expense waiver/reimbursement2 | 0.39% | 0.41% | 0.39% | 0.43% | 0.43% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $107,450 | $109,583 | $118,639 | $128,005 | $117,884 |
Portfolio turnover | 25% | 8% | 15% | 17% | 9% |
1 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
2 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
Assets: | ||
Total investment in securities, at value (identified cost $166,756,059) | $173,228,624 | |
Restricted cash (Note 2) | 67,500 | |
Income receivable | 1,967,729 | |
Receivable for shares sold | 87,080 | |
TOTAL ASSETS | 175,350,933 | |
Liabilities: | ||
Bank overdraft | $183,804 | |
Payable for shares redeemed | 120,451 | |
Payable for other service fees (Notes 2 and 5) | 36,632 | |
Payable for portfolio accounting fees | 23,750 | |
Payable for share registration costs | 14,531 | |
Payable for distribution services fee (Note 5) | 13,817 | |
Payable to adviser (Note 5) | 10,030 | |
Payable for daily variation margin | 9,375 | |
Payable for administrative fee | 3,007 | |
Accrued expenses (Note 5) | 17,242 | |
TOTAL LIABILITIES | 432,639 | |
Net assets for 15,675,723 shares outstanding | $174,918,294 | |
Net Assets Consists of: | ||
Paid-in capital | $169,104,636 | |
Net unrealized appreciation of investments and futures contracts | 6,458,971 | |
Accumulated net realized loss on investments and futures contracts | (801,498) | |
Undistributed net investment income | 156,185 | |
TOTAL NET ASSETS | $174,918,294 | |
Net Assets Value, Offering Price and Redemption Proceeds Per Share: | ||
Class A Shares: | ||
Net asset value per share ($67,468,558 ÷ 6,047,102 shares outstanding), no par value, unlimited shares authorized | $11.16 | |
Offering price per share (100/95.50 of $11.16) | $11.69 | |
Redemption proceeds per share | $11.16 | |
Class F Shares: | ||
Net asset value per share ($107,449,736 ÷ 9,628,621 shares outstanding), no par value, unlimited shares authorized | $11.16 | |
Offering price per share (100/99.00 of $11.16) | $11.27 | |
Redemption proceeds per share (99.00/100 of $11.16) | $11.05 |
Investment Income: | |||
Interest | $7,043,654 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $718,982 | ||
Administrative fee (Note 5) | 140,665 | ||
Custodian fees | 12,641 | ||
Transfer agent fees | 95,939 | ||
Directors'/Trustees' fees (Note 5) | 2,475 | ||
Auditing fees | 26,650 | ||
Legal fees | 9,266 | ||
Distribution services fee (Note 5) | 438,816 | ||
Other service fees (Notes 2 and 5) | 448,259 | ||
Portfolio accounting fees | 90,239 | ||
Share registration costs | 32,701 | ||
Printing and postage | 20,659 | ||
Miscellaneous (Note 5) | 7,812 | ||
TOTAL EXPENSES | 2,045,104 | ||
Waivers and Reimbursement: | |||
Waiver of investment adviser fee (Note 5) | $(250,494) | ||
Waiver/reimbursement of other operating expenses (Notes 2 and 5) | (273,255) | ||
TOTAL WAIVERS AND REIMBURSEMENT | (523,749) | ||
Net expenses | 1,521,355 | ||
Net investment income | 5,522,299 | ||
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts: | |||
Net realized gain on investments | 1,526,871 | ||
Net realized gain on futures contracts | 54,111 | ||
Net change in unrealized appreciation of investments | (3,701,362) | ||
Net change in unrealized depreciation of futures contracts | (13,594) | ||
Net realized and unrealized loss on investments and futures contracts | (2,133,974) | ||
Change in net assets resulting from operations | $3,388,325 |
Year Ended August 31 | 2015 | 2014 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $5,522,299 | $5,273,110 |
Net realized gain (loss) on investments and futures contracts | 1,580,982 | (311,632) |
Net change in unrealized appreciation/depreciation of investments and futures contracts | (3,714,956) | 8,695,510 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 3,388,325 | 13,656,988 |
Distributions to Shareholders: | ||
Distributions from net investment income | ||
Class A Shares | (2,131,834) | (1,662,020) |
Class F Shares | (3,173,611) | (3,603,881) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (5,305,445) | (5,265,901) |
Share Transactions: | ||
Proceeds from sale of shares | 17,320,037 | 15,463,380 |
Proceeds from shares issued in connection with the tax-free transfer of assets from Huntington Ohio Tax Free Fund | — | 24,405,186 |
Net asset value of shares issued to shareholders in payment of distributions declared | 4,134,460 | 3,965,276 |
Cost of shares redeemed | (23,663,206) | (36,951,129) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (2,208,709) | 6,882,713 |
Change in net assets | (4,125,829) | 15,273,800 |
Net Assets: | ||
Beginning of period | 179,044,123 | 163,770,323 |
End of period (including undistributed net investment income of $156,185 and $10,298, respectively) | $174,918,294 | $179,044,123 |
Class A Shares of the Fund Issued | Acquired Fund Net Assets Received | Unrealized Appreciation† | Net Assets of the Fund Immediately Prior to Combination | Net Assets of the Fund Immediately After Combination |
2,170,409 | $24,405,186 | $765,871 | $155,661,433 | $180,066,619 |
† | Unrealized Appreciation is included in the Acquired Fund Net Assets Received amount shown above. |
Net investment income* | $5,863,794 |
Net realized and unrealized gain on investments | $10,076,271 |
Net increase in net assets resulting from operations | $15,940,065 |
* | Net investment income reflects $150,937 of pro forma eliminated expenses. |
■ | Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium), unless the issuer's creditworthiness is impaired or other factors indicate that amortized cost is not an accurate estimate of the investment's fair value, in which case it would be valued in the same manner as a longer-term security. |
■ | 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. |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | 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. |
Other Service Fees Incurred | Other Service Fees Reimbursed | |
Class A Shares | $175,104 | $(100) |
Class F Shares | 273,155 | — |
TOTAL | $448,259 | $(100) |
Fair Value of Derivative Instruments | ||
Liability | ||
Statements of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||
Interest rate contracts | Payable for daily variation margin | $13,594* |
* | Includes cumulative depreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day's variation margin is reported within the Statements of Assets and Liabilities. |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |
Futures | |
Interest rate contracts | $54,111 |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |
Futures | |
Interest rate contracts | $(13,594) |
Year Ended August 31 | 2015 | 2014 | ||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 832,221 | $9,397,573 | 931,514 | $10,338,577 |
Proceeds from shares issued in connection with the tax-free transfer of assets from Huntington Ohio Tax Free Fund | — | — | 2,170,409 | 24,405,186 |
Shares issued to shareholders in payment of distributions declared | 105,761 | 1,190,751 | 57,323 | 636,316 |
Shares redeemed | (1,050,346) | (11,838,094) | (1,218,774) | (13,405,504) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | (112,364) | $(1,249,770) | 1,940,472 | $21,974,575 |
Year Ended August 31 | 2015 | 2014 | ||
Class F Shares: | Shares | Amount | Shares | Amount |
Shares sold | 702,591 | $7,922,464 | 462,494 | $5,124,803 |
Shares issued to shareholders in payment of distributions declared | 261,465 | 2,943,709 | 301,689 | 3,328,960 |
Shares redeemed | (1,050,737) | (11,825,112) | (2,138,315) | (23,545,625) |
NET CHANGE RESULTING FROM CLASS F SHARE TRANSACTIONS | (86,681) | $(958,939) | (1,374,132) | $(15,091,862) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (199,045) | $(2,208,709) | 566,340 | $6,882,713 |
Increase (Decrease) | |
Undistributed Net Investment Income (Loss) | Accumulated Net Realized Gain (Loss) |
$(70,967) | $70,967 |
2015 | 2014 | |
Ordinary income | 1,761 | $— |
Tax-exempt income | 5,303,684 | $5,265,901 |
Undistributed tax-exempt income | $153,479 |
Undistributed ordinary income | $2,825 |
Net unrealized appreciation | $6,560,954 |
Capital loss carryforwards and deferral | $(903,600) |
Expiration Year | Short-Term | Long-Term | Total |
2017 | $242,494 | NA | $242,494 |
2018 | $560,004 | NA | $560,004 |
2019 | $22,465 | NA | $22,465 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.150% | on the first $5 billion |
0.125% | on the next $5 billion |
0.100% | on the next $10 billion |
0.075% | on assets in excess of $20 billion |
Share Class Name | Percentage of Average Daily Net Assets of Class |
Class A Shares | 0.05% |
Class F Shares | 0.40% |
Distribution Services Fees Incurred | Distribution Services Fees Waived | |
Class F Shares | $438,816 | $(273,155) |
Purchases | $43,872,771 |
Sales | $45,915,260 |
October 26, 2015
Beginning Account Value 3/1/2015 | Ending Account Value 8/31/2015 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,001.00 | $3.78 |
Class F Shares | $1,000 | $1,000.30 | $4.54 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,021.42 | $3.82 |
Class F Shares | $1,000 | $1,020.67 | $4.58 |
1 | Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 0.75% |
Class F Shares | 0.90% |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John F. Donahue* Birth Date: July 28, 1924 Trustee Indefinite Term Began serving: August 1990 | Principal Occupations: Director or Trustee of the Federated Fund Family; Chairman and Director, Federated Investors, Inc.; Chairman of the Federated Fund Family's Executive Committee. Previous Positions: Chairman of the Federated Fund Family; Trustee, Federated Investment Management Company; Chairman and Director, Federated Investment Counseling. |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: August 1990 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Family; Director or Trustee of the Funds in the Federated Fund Family; President, Chief Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd. |
* | Family relationships and reasons for “interested” status: John F. Donahue is the father of J. Christopher Donahue; both are “interested” due to their beneficial ownership of shares of Federated Investors, Inc. and the positions they hold with Federated and its subsidiaries. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; Chairman and CEO, The Collins Group, Inc. (a private equity firm). Other Directorships Held: Director, Chair of the Compensation Committee, Audit Committee member, KLX Corp. Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director, FleetBoston Financial Corp.; Director and Audit Committee Member, Bank of America Corp. and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee of the Federated Fund Family; Retired. Other Directorships Held: Director, Chair of the Audit Committee, Governance Committee, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP. Mr. Hough is an Executive Committee member of the United States Golf Association, he serves on the President's Cabinet and Business School Board of Visitors for the University of Alabama and is on the Business School Board of Visitors for Wake Forest University. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Fund Family; Adjunct Professor of Law, Duquesne University School of Law. Other Directorships Held: Director, CONSOL Energy Inc. Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously served as: Associate General Secretary, Diocese of Pittsburgh; Professor of Law, Duquesne University School of Law and was a member of the Superior Court of Pennsylvania. Judge Lally-Green also holds the positions of: Member, Pennsylvania State Board of Education; Director, Saint Vincent College; Director and Chair, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Our Campaign for the Church Alive!, Inc.; Director, Pennsylvania Bar Institute; and Director, Cardinal Wuerl North Catholic High School, Inc. Judge Lally-Green has held the positions of: Director, Auberle; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; and Director, Catholic High Schools of the Diocese of Pittsburgh, Inc. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Peter E. Madden Birth Date: March 16, 1942 Trustee Indefinite Term Began serving: August 1991 | Principal Occupation: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Fund Family; Retired. Other Directorships Held: None. Qualifications: Mr. Madden has served in several business management, mutual fund services and directorship positions throughout his career. Mr. Madden previously served as President, Chief Operating Officer and Director, State Street Bank and Trust Company (custodian bank) and State Street Corporation (financial services). He was Director, VISA USA and VISA International and Chairman and Director, Massachusetts Bankers Association. Mr. Madden served as Director, Depository Trust Corporation and Director, The Boston Stock Exchange. Mr. Madden also served as a Representative to the Commonwealth of Massachusetts General Court. |
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Trustee Indefinite Term Began serving: January 1999 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Mansfield has served in several banking, business management and educational roles and directorship positions throughout his career. Mr. Mansfield previously served as Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly, Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University; Executive Vice President DVC Group, Inc. (marketing, communications and technology). |
Thomas M. O'Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: October 2006 | Principal Occupations: Director or Trustee, Vice Chair of the Audit Committee of the Federated Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O'Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O'Neill serves as Director, Medicines for Humanity and Director, The Golisano Children's Museum of Naples, Florida. Mr. O'Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey serves as Board Member, Epilepsy Foundation of Western Pennsylvania and Board member, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: June 1999 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
John W. McGonigle Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Officer since: August 1990 | Principal Occupations: Executive Vice President and Secretary of the Federated Fund Family; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc. Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp. and Edgewood Services, Inc.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Investors, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Richard B. Fisher Birth Date: May 17, 1923 VICE CHAIRMAN Officer since: August 2002 | Principal Occupations: Vice Chairman or Vice President of some of the Funds in the Federated Fund Family; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp. Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Family; Executive Vice President, Federated Investors, Inc.; Director and Chief Executive Officer, Federated Securities Corp. |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER Officer since: January 2005 | Principal Occupations: Mr. Germain is Chief Legal Officer of the Federated Fund Family. He is General Counsel and Vice President, Federated Investors, Inc.; President, Federated Administrative Services and Federated Administrative Services, Inc.; Vice President, Federated Securities Corp.; Secretary, Federated Private Asset Management, Inc.; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Fund Family; Vice President and Chief Compliance Officer of Federated Investors, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Investors, Inc. Prior to joining Federated, Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Robert J. Ostrowski Birth Date: April 26, 1963 CHIEF INVESTMENT OFFICER Officer since: February 2010 | Principal Occupations: Robert J. Ostrowski joined Federated in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated's taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund's Adviser in 2009 and served as a Senior Vice President of the Fund's Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University. |
J. Scott Albrecht Birth Date: June 1, 1960 VICE PRESIDENT Officer since: November 1999 Portfolio Manager since: March 1995 | Principal Occupations: J. Scott Albrecht has been the Fund's portfolio manager since March 1995. He is Vice President of the Trust with respect to the Fund. Mr. Albrecht joined Federated in 1989. He became a Senior Vice President of the Fund's Adviser in January 2005 and served as a Vice President of the Fund's Adviser from 1994 through 2004. He has been a Senior Portfolio Manager since 1997 and was a Portfolio Manager from 1994 to 1996. Mr. Albrecht has received the Chartered Financial Analyst designation and holds an M.S. in Public Management from Carnegie Mellon University. |
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 313923609
2015 ©Federated Investors, Inc.
Share Class | Ticker |
A | PAMFX |
B | FPABX |
1 | Income may be subject to the alternative minimum tax for individuals and corporations (AMT). |
2 | Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the PA Index. |
3 | Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the MMPFA. |
4 | Duration is a measure of a security's price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities with shorter durations. For purposes of this Management's Discussion of Fund Performance, duration is determined using a third-party analytical system. |
5 | Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices. |
6 | Credit ratings pertain only to the securities in the portfolio and do not protect Fund shares against market risk. |
7 | The Fund's use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments. |
8 | Investment-grade securities and noninvestment-grade securities may either: be (a) rated by a nationally recognized statistical ratings organization or rating agency; or (b) unrated securities that the Fund's investment adviser (“Adviser”) believes are of comparable quality. The rating agencies that provided the ratings for rated securities include Standard and Poor's, Moody's Investor Services, Inc. and Fitch Rating Service. When ratings vary, the highest rating is used. Credit ratings of “AA” or better are considered to be high credit quality; credit ratings of “A” are considered high or medium/good quality; and credit ratings of “BBB” are considered to be medium/good credit quality, and the lowest category of investment grade securities; credit ratings of “BB” and below are lower-rated, noninvestment-grade securities or junk bonds; and credit ratings of “CCC” or below are noninvestment-grade securities that have high default risk. Any credit quality breakdown does not give effect to the impact of any credit derivative investments made by the Fund. Credit ratings are an indication of the risk that a security will default. They do not protect a security from credit risk. Lower-rated bonds typically offer higher yields to help compensate investors for the increased risk associated with them. Among these risks are lower creditworthiness, greater price volatility, more risk to principal and income than with higher-rated securities and increased possibilities of default. |
Federated Pennsylvania Municipal Income Fund - | Class A Shares | NA | PA Index | PAIG Index | MMPFA |
F | NA | I | I | I | |
8/31/2005 | 9,550 | 10,000 | 10,000 | 10,000 | |
8/31/2006 | 9,839 | 10,336 | 10,324 | 10,269 | |
8/31/2007 | 9,908 | 10,602 | 10,581 | 10,408 | |
8/31/2008 | 9,864 | 10,985 | 11,009 | 10,612 | |
8/31/2009 | 10,008 | 11,552 | 11,708 | 10,996 | |
8/31/2010 | 10,969 | 12,690 | 12,960 | 12,078 | |
8/31/2011 | 11,180 | 13,047 | 13,348 | 12,271 | |
8/31/2012 | 12,163 | 14,212 | 14,712 | 13,432 | |
8/31/2013 | 11,627 | 13,735 | 14,116 | 12,706 | |
8/31/2014 | 12,753 | 15,251 | 15,800 | 13,988 | |
8/31/2015 | 13,090 | 15,709 | 16,315 | 14,393 |
■ | Total returns shown include the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550). |
1 Year | 5 Years | 10 Years | |
Class A Shares | -2.00% | 2.66% | 2.73% |
Class B Shares | -3.60% | 2.46% | 2.58% |
PA Index | 3.00% | 4.36% | 4.62% |
PAIG Index | 3.26% | 4.71% | 5.02% |
MMPFA | 2.91% | 3.70% | 3.74% |
1 | Represents a hypothetical investment of $10,000 in the Fund after deducting applicable sales charges: For Class A Shares, the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550); For Class B Shares, the maximum contingent deferred sales charge is 5.50% on any redemption of shares held up to one year from the purchase date. The Fund's performance assumes the reinvestment of all dividends and distributions. The PA Index, PAIG Index and MMPFA have been adjusted to reflect reinvestment of dividends on securities in the index and average. |
2 | The PA Index consists of bonds in the S&P Municipal Bond Index (“Main Index”) that have been issued by the Commonwealth of Pennsylvania or local governments or state or local government entities within Pennsylvania. The Main Index is a broad, comprehensive, market value-weighted index composed of approximately 55,000 bond issues that are exempt from U.S. federal income taxes or subject to the alternative minimum tax (AMT). Eligibility criteria for inclusion in the Main Index include, but are not limited to: the bond issuer must be a state (including the Commonwealth of Puerto Rico and U.S. territories) or local government or state or local government entity where interest on the bond is exempt from U.S. federal income taxes or subject to the AMT; the bond must be held by a mutual fund for which Standard & Poor's Securities Evaluations, Inc. provides prices; it must be denominated in U.S. dollars and have a minimum par amount of $2 million; and the bond must have a minimum term to maturity and/or call date greater than or equal to one calendar month. The Main Index is rebalanced monthly. The PA Index is not adjusted to reflect sales charges, expenses and other fees that the Securities and Exchange Commission (SEC) requires to be reflected in the Fund's performance. The PA Index is unmanaged, and unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. |
3 | The PAIG Index represents the portion of the PA Index composed solely of bonds that are rated at least BBB with remaining maturities of more than three years that are not subject to AMT. The PAIG Index is not adjusted to reflect sales charges, expenses and other fees that the SEC requires to be reflected in the Fund's performance. The PAIG Index is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. |
4 | Morningstar figures represent the average of the total returns reported by all the mutual funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. |
Sector Composition | Percentage of Total Net Assets |
Hospital | 17.8% |
Education | 15.8% |
Water & Sewer | 11.6% |
General Obligation—Local | 9.6% |
Pre-Refunded | 7.2% |
IDB/PCR | 6.8% |
Dedicated Tax | 6.5% |
Toll Road | 5.6% |
Airport | 2.7% |
General Obligations—State | 2.5% |
Other2 | 11.7% |
Other Assets and Liabilities—Net3 | 2.2% |
TOTAL | 100.0% |
1 | Sector classifications, and the assignment 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, including 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. Pre-refunded securities are those whose debt service is paid from escrowed assets, usually U.S. government securities. |
2 | For purposes of this table, sector classifications constitute 86.1% 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. |
Principal Amount | Value | ||
MUNICIPAL BONDS—97.2% | |||
Pennsylvania—97.2% | |||
$2,000,000 | Allegheny County Sanitation Authority, Sewer Revenue Bonds (Series 2015), 5.00%, 12/1/2045 | $2,207,440 | |
1,450,000 | Allegheny County, PA Airport Authority, Airport Revenue Bonds (Series 2012A-1), 5.00% (Pittsburgh International Airport), 1/1/2023 | 1,644,706 | |
1,550,000 | Allegheny County, PA Airport Authority, Airport Revenue Bonds (Series 2012A-1), 5.00% (Pittsburgh International Airport), 1/1/2024 | 1,747,547 | |
3,555,000 | Allegheny County, PA HDA, Hospital Revenue Bonds (Series 2008A), 5.00% (UPMC Health System), 6/15/2018 | 3,939,758 | |
1,385,000 | Allegheny County, PA IDA, Environmental Improvement Revenue Refunding Bonds (Series 2005), 5.50% (United States Steel Corp.), 11/1/2016 | 1,429,708 | |
3,000,000 | Allegheny County, PA IDA, Environmental Improvement Revenue Refunding Bonds (Series 2009), 6.75% (United States Steel Corp.), 11/1/2024 | 3,254,580 | |
580,000 | Allegheny County, PA IDA, Lease Revenue Bonds (Series 2006), 5.125% (Residential Resources Inc. Project), 9/1/2031 | 582,210 | |
2,000,000 | Allegheny County, PA Port Authority, Special Revenue Transportation Refunding Bonds (Series 2011), 5.00% (Original Issue Yield: 5.20%), 3/1/2026 | 2,245,460 | |
1,715,000 | Allegheny County, PA Port Authority, Special Revenue Transportation Refunding Bonds (Series 2011), 5.75%, 3/1/2029 | 2,006,979 | |
2,500,000 | Allegheny County, PA, GO Refunding Bonds (Series C-73), 5.00%, 12/1/2019 | 2,870,750 | |
2,250,000 | Allentown, PA Neighborhood Improvement Zone Development Authority, Tax Revenue Bonds (Series 2012A), 5.00%, 5/1/2035 | 2,360,272 | |
3,000,000 | Berks County, PA Municipal Authority, Revenue Bonds (Series 2012A), 5.00% (Reading Hospital & Medical Center), 11/1/2044 | 3,235,770 | |
2,000,000 | Bethlehem, PA Authority, GTD Water Revenue Bonds (Series 2014), 5.00% (Bethlehem, PA)/(Build America Mutual Assurance INS), 11/15/2030 | 2,240,860 | |
1,360,000 | Bethlehem, PA Authority, GTD Water Revenue Bonds (Series 2014), 5.00% (Bethlehem, PA)/(Build America Mutual Assurance INS), 11/15/2031 | 1,517,284 | |
1,055,000 | Catasauqua, PA Area School District, UT GO Bonds, 5.00% (AGM INS), 2/15/2031 | 1,073,083 | |
1,000,000 | Chartiers Valley, PA School District, UT GO Bonds (Series 2015B), 5.00% (State Aid Withholding GTD), 10/15/2040 | 1,108,670 | |
2,530,000 | Cheltenham Twp, PA School District, LT GO Bonds (Series 2014), 5.00% (State Aid Withholding GTD), 2/15/2040 | 2,789,325 | |
2,000,000 | Chester County, PA HEFA, Revenue Bonds (Series 2006), 5.00% (Devereux Foundation), 11/1/2031 | 2,038,740 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Pennsylvania—continued | |||
$1,900,000 | Chester, PA Water Authority, Water Revenue Bonds (Series 2014), 5.00%, 12/1/2039 | $2,145,879 | |
2,000,000 | Clairton Municipal Authority, PA, Sewer Revenue Bonds (Series 2012B), 5.00%, 12/1/2037 | 2,133,740 | |
1,500,000 | Clarion County, PA IDA, Water Facility Revenue Refunding Bonds (Series 2009), 5.50% (Pennsylvania American Water Co.), 12/1/2039 | 1,629,780 | |
2,000,000 | Commonwealth Financing Authority of PA, Revenue Bonds (Series 2013B), 5.00% (Commonwealth of Pennsylvania), 6/1/2036 | 2,173,860 | |
2,000,000 | Commonwealth of Pennsylvania, UT GO Bonds (First Series 2011), 5.00%, 11/15/2030 | 2,300,180 | |
2,355,000 | Commonwealth of Pennsylvania, UT GO Bonds (First Series 2012), 5.00%, 6/1/2022 | 2,749,839 | |
2,000,000 | Cumberland County, PA Municipal Authority, Revenue Bonds (Series 2007A), 5.00% (Diakon Lutheran Social Ministries)/(United States Treasury PRF 1/1/2017@100, 1/1/2036 | 2,113,360 | |
905,000 | Cumberland County, PA Municipal Authority, Revenue Bonds (Series 2015), 5.00% (Diakon Lutheran Social Ministries), 1/1/2038 | 958,223 | |
1,000,000 | Cumberland County, PA Municipal Authority, Revenue Refunding Bonds (Series 2012), 5.25% (Asbury Pennsylvania Obligated Group), 1/1/2041 | 1,034,460 | |
2,500,000 | Dauphin County, PA General Authority, Health System Revenue Bonds (Series 2012A), 5.00% (Pinnacle Health System), 6/1/2042 | 2,681,600 | |
410,000 | Delaware County, PA Authority, Revenue Bonds (Series 2012), 5.00% (Villanova University), 8/1/2020 | 477,498 | |
1,000,000 | 1,2 | Delaware County, PA IDA, Solid Waste Disposal Revenue Bonds (Series 2015), 5.00% (Covanta Energy Corp.), 7/1/2043 | 1,001,850 |
1,250,000 | Delaware County, PA Regional Water Quality Control Authority, Sewer Revenue Bonds (Series 2015), 5.00%, 5/1/2040 | 1,386,350 | |
2,350,000 | Delaware River Port Authority, Revenue Bonds (Series 2010D), 5.00%, 1/1/2028 | 2,623,563 | |
1,105,000 | Erie County, NY Water Authority, Revenue Refunding Bonds (Series 2014), 5.00% (AGM INS), 12/1/2034 | 1,245,191 | |
1,500,000 | Erie County, PA Hospital Authority, Revenue Bonds (Series 2006), 5.00% (UPMC Health System)/(CIFG Assurance NA INS), 11/1/2035 | 1,524,795 | |
1,000,000 | Erie, PA Higher Education Building Authority, Revenue Bonds (Series 2007 GG3), 5.00% (Gannon University)/(Radian Asset Assurance, Inc. INS), 5/1/2032 | 1,019,960 | |
2,250,000 | Geisinger Authority, PA Health System, Health System Revenue Bonds (Series 2009A), 5.25% (Geisinger Health System), 6/1/2039 | 2,476,867 | |
2,260,000 | Geisinger Authority, PA Health System, Revenue Bonds (Series 2014A), 5.00% (Geisinger Health System), 6/1/2041 | 2,509,888 | |
2,000,000 | Harrisburg, PA Authority, Water Revenue Refunding Bonds (Series 2008), 5.25% (Original Issue Yield: 5.35%), 7/15/2031 | 2,028,580 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Pennsylvania—continued | |||
$1,260,000 | Haverford Twp, PA School District, UT GO Bonds (Series 2015A), 5.00% (State Aid Withholding GTD), 3/15/2029 | $1,425,249 | |
785,000 | Lancaster County, PA Hospital Authority, Health Center Revenue Bonds (Series 2015), 5.00% (Masonic Villages), 11/1/2035 | 867,935 | |
1,215,000 | Lancaster County, PA Hospital Authority, Health System Revenue Bonds (Series 2012B), 5.00% (Lancaster General Hospital), 7/1/2042 | 1,316,951 | |
1,000,000 | Lancaster County, PA Solid Waste Management Authority, GTD Authority Bonds (Series 2013B), 5.00% (Dauphin County, PA GTD), 12/15/2033 | 1,125,450 | |
1,000,000 | Lancaster, PA Higher Education Authority, College Revenue Bonds, 5.00% (Franklin & Marshall College), 4/15/2019 | 1,029,310 | |
2,250,000 | Lycoming County PA Authority, College Revenue Bonds (Series 2008), 5.50% (Pennsylvania College of Technology)/(Assured Guaranty Corp. INS), 10/1/2032 | 2,448,922 | |
2,200,000 | Lycoming County PA Authority, Revenue Bonds (Series A), 5.75% (Susquehanna Health System)/(Original Issue Yield: 5.90%), 7/1/2039 | 2,371,908 | |
2,000,000 | Montgomery County, PA Higher Education & Health Authority Hospital, Revenue Bonds (Series 2006FF1), 5.00% (Dickinson College)/(CIFG Assurance NA INS), 5/1/2031 | 2,050,740 | |
1,100,000 | Montgomery County, PA IDA, Retirement Communities Revenue Refunding Bonds (Series 2012), 5.00% (ACTS Retirement Life Communities, Inc.), 11/15/2028 | 1,174,162 | |
400,000 | Montgomery County, PA IDA, Retirement Communities Revenue Refunding Bonds (Series 2012), 5.00% (ACTS Retirement Life Communities, Inc.), 11/15/2029 | 425,964 | |
1,000,000 | New Wilmington, PA Municipal Authority, Revenue Bonds (Series 2007GG4), 5.125% (Westminster College)/(Radian Asset Assurance, Inc. INS), 5/1/2033 | 1,021,310 | |
2,000,000 | Pennsylvania Economic Development Financing Authority, Tax-Exempt Private Activity Revenue Bonds (Series 2015), 5.00% (Pennsylvania Rapid Bridge Replacement), 6/30/2042 | 2,091,860 | |
1,000,000 | Pennsylvania EDFA, Exempt Facilities Revenue Bonds (Series 2012A), 5.00% (Amtrak), 11/1/2041 | 1,064,290 | |
1,000,000 | Pennsylvania EDFA, Exempt Facilities Revenue Refunding Bonds (Series 2014), 5.50% (National Gypsum Co.), 11/1/2044 | 1,025,610 | |
2,000,000 | Pennsylvania EDFA, Junior GTD Parking Revenue Bonds (Series 2013B-1), 6.00% (Dauphin County, PA GTD), 7/1/2053 | 2,350,420 | |
700,000 | Pennsylvania EDFA, Revenue Bonds (Series 1998A), 5.25% (Northwestern Human Services, Inc.)/(Original Issue Yield: 5.668%), 6/1/2028 | 700,371 | |
1,500,000 | Pennsylvania EDFA, Revenue Bonds (Series 2014A), 5.00% (UPMC Health System), 2/1/2045 | 1,649,310 | |
1,000,000 | Pennsylvania EDFA, Solid Waste Disposal Revenue Bonds, Project A, 5.10% (Waste Management, Inc.), 10/1/2027 | 1,013,700 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Pennsylvania—continued | |||
$2,000,000 | Pennsylvania EDFA, Water Facilities Revenue Bonds (Series 2009), 6.20% (Pennsylvania American Water Co.), 4/1/2039 | $2,288,680 | |
2,000,000 | Pennsylvania EDFA, Water Facilities Revenue Bonds (Series 2009B), 5.00% (Aqua Pennsylvania, Inc.), 11/15/2040 | 2,235,880 | |
1,500,000 | Pennsylvania Intergovernmental Coop Authority, Special Tax Revenue Refunding Bonds (Series 2009), 5.00%, 6/15/2022 | 1,678,275 | |
1,000,000 | Pennsylvania Intergovernmental Coop Authority, Special Tax Revenue Refunding Bonds (Series 2010), 5.00%, 6/15/2018 | 1,111,990 | |
1,020,000 | Pennsylvania State Higher Education Facilities Authority, 5.125% (Gwynedd-Mercy College)/(Radian Asset Assurance, Inc. INS), 5/1/2032 | 1,049,651 | |
1,000,000 | Pennsylvania State Higher Education Facilities Authority, College Revenue Bonds (Series 2007), 5.00% (Bryn Mawr College)/(AMBAC Financial Group, Inc. INS), 12/1/2037 | 1,054,370 | |
1,000,000 | Pennsylvania State Higher Education Facilities Authority, Fixed Rate Revenue Bonds (Series 2015A), 5.25% (Thomas Jefferson University), 9/1/2050 | 1,097,160 | |
2,000,000 | Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (First Series of 2012), 5.00% (Temple University), 4/1/2035 | 2,217,140 | |
1,000,000 | Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2006-FF2), 5.00% (Elizabethtown College)/(Radian Asset Assurance, Inc. INS), 12/15/2027 | 1,028,410 | |
1,130,000 | Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2006A), 5.00% (University of Scranton)/(Syncora Guarantee, Inc. INS), 11/1/2035, (United States Treasury PRF 5/1/2016@100) | 1,165,211 | |
1,500,000 | Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2009), 5.00% (Carnegie Mellon University), 8/1/2021 | 1,676,805 | |
1,000,000 | Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2009A), 5.25% (University of Pennsylvania Health System), 8/15/2022 | 1,142,610 | |
2,000,000 | Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 200B), 5.50% (University of Pennsylvania Health System)/(Original Issue Yield: 5.65%), 8/15/2018 | 2,258,520 | |
1,100,000 | Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2010), 5.00% (Thomas Jefferson University), 3/1/2040 | 1,170,972 | |
1,500,000 | Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2012A), 5.00% (University of Pennsylvania Health System), 8/15/2042 | 1,641,690 | |
1,630,000 | Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2015), 5.00% (University of the Sciences in Philadelphia), 11/1/2036 | 1,811,028 | |
1,250,000 | Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series EE-1), 5.00% (York College of Pennsylvania)/(Syncora Guarantee, Inc. INS), 11/1/2033 | 1,258,488 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Pennsylvania—continued | |||
$1,000,000 | Pennsylvania State Higher Education Facilities Authority, Revenue Refunding Bonds (Series 2015A), 5.00% (University of Pennsylvania), 10/1/2036 | $1,162,490 | |
2,000,000 | Pennsylvania State Higher Education Facilities Authority, Student Housing Revenue Bonds, 5.125% (Foundation for Indiana University of Pennsylvania)/(Syncora Guarantee, Inc. INS), 7/1/2039 | 2,017,160 | |
5,740,000 | Pennsylvania State Turnpike Commission, Turnpike Revenue Bonds (Series 2006A), 5.00% (United States Treasury PRF 6/1/2016@100), 12/1/2026 | 5,944,229 | |
1,000,000 | Pennsylvania State Turnpike Commission, Turnpike Revenue Bonds (Series 2011E), 5.00%, 12/1/2030 | 1,127,740 | |
2,000,000 | Pennsylvania State Turnpike Commission, Turnpike Subordinate Revenue Bonds (Series 2009B), 5.125% (Original Issue Yield: 5.30%), 12/1/2040 | 2,190,520 | |
2,000,000 | 3 | Pennsylvania State Turnpike Commission, Variable Rate Subordinate Lien Revenue Bonds (SIFMA Index Bonds) (Series 2015A-2), 0.82% 12/1/2045 | 1,997,140 |
1,430,000 | 3 | Pennsylvania State Turnpike Commission, Variable Rate Turnpike Revenue Bonds (Series 2013B), 1.29%, 12/1/2020 | 1,451,321 |
2,440,000 | Pennsylvania State Turnpike Commission-Motor License Fund Enhanced, Motor License Fund-Enhanced Turnpike Subordinate Special Revenue Bonds (Series 2011A), 5.50% (Original Issue Yield: 5.55%), 12/1/2041 | 2,768,888 | |
2,000,000 | Pennsylvania State Turnpike Commission-Motor License Fund Enhanced, Motor License Fund-Enhanced Turnpike Subordinate Special Revenue Bonds (Series 2011A), 6.00%, 12/1/2036 | 2,346,140 | |
1,600,000 | Philadelphia Authority for Industrial Development, Senior Living Revenue Bonds (Series 2005A), 5.625% (PresbyHomes Germantown/Morrisville), 7/1/2035 | 1,619,712 | |
2,000,000 | Philadelphia, PA Airport System, Airport Revenue Refunding Bonds (Series 2010D), 5.25%, 6/15/2028 | 2,201,380 | |
1,210,000 | Philadelphia, PA Authority for Industrial Development, Revenue Bonds (Series 2012), 6.625% (New Foundations Charter School), 12/15/2041 | 1,326,632 | |
2,350,000 | Philadelphia, PA Gas Works, Revenue Bonds (Seventh Series 1998 General Ordinance), 5.00% (AMBAC Financial Group, Inc. INS), 10/1/2037 | 2,500,188 | |
2,000,000 | Philadelphia, PA Hospitals & Higher Education Facilities Authority, Hospital Revenue Bonds (Series 2011D), 5.00% (Children's Hospital of Philadelphia), 7/1/2028 | 2,266,280 | |
1,670,000 | Philadelphia, PA Hospitals & Higher Education Facilities Authority, Hospital Revenue Bonds (Series 2012A), 5.625% (Temple University Health System Obligated Group)/(Original Issue Yield: 5.875%), 7/1/2042 | 1,749,342 | |
1,040,000 | Philadelphia, PA Hospitals & Higher Education Facilities Authority, Hospital Revenue Bonds (Series 2014A), 5.00% (Children's Hospital of Philadelphia), 7/1/2042 | 1,160,952 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Pennsylvania—continued | |||
$1,250,000 | Philadelphia, PA Redevelopment Authority, Revenue Bonds (Series 2003A), 5.50% (Beech Student Housing Complex), 7/1/2019 | $1,251,963 | |
1,000,000 | Philadelphia, PA Redevelopment Authority, Revenue Bonds (Series 2003A), 5.625% (Beech Student Housing Complex), 7/1/2023 | 1,001,280 | |
5,000 | Philadelphia, PA School District, LT GO Bonds (Series 2008E), 6.00% (United States Treasury PRF 9/1/2018@100), 9/1/2038 | 5,744 | |
5,000 | Philadelphia, PA School District, LT GO Bonds (Series 2008E), 6.00% (United States Treasury PRF 9/1/2018@100)/(Original Issue Yield: 6.30%), 9/1/2038 | 5,744 | |
40,000 | Philadelphia, PA School District, LT GO Bonds (Series 2008E), 6.00% (United States Treasury PRF 9/1/2018@100)/(Original Issue Yield: 6.30%), 9/1/2038 | 45,951 | |
3,000,000 | Philadelphia, PA Water & Wastewater System, Revenue Refunding Bonds (Series 2012), 5.00%, 11/1/2028 | 3,425,400 | |
750,000 | Philadelphia, PA Water & Wastewater System, Water and Wastewater Revenue Bonds (Series 2009A), 5.25% (Original Issue Yield: 5.33%), 1/1/2036 | 824,123 | |
1,035,000 | Pittsburgh, PA Urban Redevelopment Authority, Tax Allocation, 4.50% (Center Triangle), 5/1/2019 | 1,091,542 | |
2,000,000 | Pittsburgh, PA Water & Sewer Authority, Water and Sewer System Revenue Bonds (Series 2008 D-1), 5.00% (AGM INS), 9/1/2025 | 2,204,260 | |
3,000,000 | Pittsburgh, PA, UT GO Bonds (Series 2012B), 5.00%, 9/1/2026 | 3,436,710 | |
1,075,000 | Reading Area Water Authority, PA, Water Revenue Bonds (Series 2011), 5.00% (Original Issue Yield: 5.08%), 12/1/2031 | 1,185,059 | |
1,500,000 | Reading Area Water Authority, PA, Water Revenue Bonds (Series 2011), 5.25% (Original Issue Yield: 5.27%), 12/1/2036 | 1,667,475 | |
1,000,000 | South Fork Municipal Authority, PA, Hospital Revenue Bonds (Series 2010), 5.50% (Conemaugh Valley Memorial Hospital)/(United States Treasury PRF 7/1/2020@100)/(Original Issue Yield: 5.72%), 7/1/2029 | 1,189,410 | |
1,295,000 | Southcentral PA, General Authority, Hospital Revenue Bonds, 5.00% (Hanover Hospital, Inc.)/(Radian Asset Assurance, Inc. INS), 12/1/2029 | 1,302,641 | |
1,140,000 | Southcentral PA, General Authority, Revenue Bonds (Series 2014A), 5.00% (Wellspan Health Obligated Group), 6/1/2026 | 1,322,833 | |
1,000,000 | Southeastern, PA Transportation Authority, Capital Grant Receipts Bonds (Series 2011), 5.00%, 6/1/2025 | 1,128,660 | |
1,000,000 | Southeastern, PA Transportation Authority, Capital Grant Receipts Bonds (Series 2011), 5.00%, 6/1/2028 | 1,108,160 | |
1,000,000 | Southeastern, PA Transportation Authority, Revenue Refunding Bonds (Series 2010), 5.00%, 3/1/2018 | 1,099,500 | |
2,000,000 | St. Mary Hospital Authority, PA, Health System Revenue Bonds (Series 2012A), 5.00% (CHE Trinity Healthcare Credit Group), 11/15/2026 | 2,245,160 |
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Pennsylvania—continued | |||
$2,000,000 | State Public School Building Authority, PA, School Revenue Bonds, 5.00% (Haverford Twp, PA School District)/(United States Treasury PRF 3/15/2016@100), 3/15/2029 | $2,051,640 | |
1,000,000 | Union County, PA Higher Educational Facilities Financing Authority, University Revenue Bonds (Series 2012A), 5.00% (Bucknell University), 4/1/2042 | 1,130,820 | |
1,000,000 | Union County, PA Higher Educational Facilities Financing Authority, University Revenue Bonds (Series 2015B), 5.00% (Bucknell University), 4/1/2032 | 1,160,960 | |
3,000,000 | West View, PA Municipal Authority Water Revenue, Revenue Bonds (Series 2014), 5.00%, 11/15/2039 | 3,366,450 | |
1,685,000 | Wilkes-Barre, PA Finance Authority, Revenue Bonds (Series 2015A), 5.00% (University of Scranton), 11/1/2033 | 1,878,202 | |
825,000 | Wilkes-Barre, PA Finance Authority, Revenue Bonds (Series 2015A), 5.00% (University of Scranton), 11/1/2034 | 915,148 | |
2,895,000 | York County, PA, UT GO Bonds (Series 2013), 5.00%, 6/1/2037 | 3,239,476 | |
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $191,609,373) | 198,663,372 | ||
SHORT-TERM MUNICIPAL—0.6%4 | |||
Pennsylvania—0.6% | |||
1,300,000 | Philadelphia, PA Hospitals & Higher Education Facilities Authority, (Series 2002-A) Daily VRDNs (Children's Hospital of Philadelphia)/(Wells Fargo Bank, N.A. LIQ), 0.01%, 9/1/2015 (AT AMORTIZED COST) | 1,300,000 | |
TOTAL INVESTMENTS—97.8% (IDENTIFIED COST $192,909,373)5 | 199,963,372 | ||
OTHER ASSETS AND LIABILITIES - NET—2.2%6 | 4,522,614 | ||
TOTAL NET ASSETS—100% | $204,485,986 |
Description | Number of Contracts | Notional Value | Expiration Date | Unrealized Depreciation |
7United States Treasury Notes, 5 Year Long Futures | 120 | $14,332,500 | December 2015 | $(21,751) |
1 | Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At August 31, 2015, these restricted securities amounted to $1,001,850, which represented 0.5% of total net assets. |
2 | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Trustees (the “Trustees”). At August 31, 2015, these liquid restricted securities amounted to $1,001,850, which represented 0.5% of total net assets. |
3 | Floating rate notes with current rate and maturity or tender date shown. |
4 | Current rate and next reset date shown for Variable Rate Demand Notes. |
5 | The cost of investments for federal tax purposes amounts to $192,899,698. |
6 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
7 | Non-income-producing security. |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
Municipal Bonds | $— | $198,663,372 | $— | $198,663,372 |
Short-Term Municipal | — | 1,300,000 | — | 1,300,000 |
TOTAL SECURITIES | $— | $199,963,372 | $— | $199,963,372 |
OTHER FINANCIAL INSTRUMENTS* | $(21,751) | $— | $— | $(21,751) |
* | Other financial instruments include futures contracts. |
AGM | —Assured Guaranty Municipal Corp. |
AMBAC | —American Municipal Bond Assurance Corporation |
EDFA | —Economic Development Finance Authority |
GO | —General Obligation |
GTD | —Guaranteed |
HDA | —Hospital Development Authority |
HEFA | —Health and Education Facilities Authority |
IDA | —Industrial Development Authority |
INS | —Insured |
LIQ | —Liquidity Agreement |
LT | —Limited Tax |
PRF | —Pre-refunded |
SIFMA | —Securities Industry and Financial Markets Association |
UT | —Unlimited Tax |
VRDNs | —Variable Rate Demand Notes |
Year Ended August 31 | 2015 | 2014 | 2013 | 2012 | 2011 |
Net Asset Value, Beginning of Period | $10.94 | $10.34 | $11.20 | $10.68 | $10.92 |
Income From Investment Operations: | |||||
Net investment income | 0.36 | 0.38 | 0.39 | 0.40 | 0.44 |
Net realized and unrealized gain (loss) on investments, futures contracts and swap contracts | (0.07) | 0.61 | (0.87) | 0.52 | (0.25) |
TOTAL FROM INVESTMENT OPERATIONS | 0.29 | 0.99 | (0.48) | 0.92 | 0.19 |
Less Distributions: | |||||
Distributions from net investment income | (0.35) | (0.39) | (0.38) | (0.40) | (0.43) |
Net Asset Value, End of Period | $10.88 | $10.94 | $10.34 | $11.20 | $10.68 |
Total Return1 | 2.65% | 9.68% | (4.41)% | 8.80% | 1.92% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% |
Net investment income | 3.25% | 3.60% | 3.50% | 3.63% | 4.04% |
Expense waiver/reimbursement2 | 0.12% | 0.13% | 0.10% | 0.10% | 0.11% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $202,057 | $219,307 | $231,890 | $275,974 | $238,538 |
Portfolio turnover | 29% | 5% | 7% | 15% | 8% |
1 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
2 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
Year Ended August 31 | 2015 | 2014 | 2013 | 2012 | 2011 |
Net Asset Value, Beginning of Period | $10.95 | $10.34 | $11.20 | $10.68 | $10.92 |
Income From Investment Operations: | |||||
Net investment income | 0.29 | 0.30 | 0.31 | 0.32 | 0.331 |
Net realized and unrealized gain (loss) on investments, futures contracts and swap contracts | (0.09) | 0.61 | (0.87) | 0.52 | (0.22) |
TOTAL FROM INVESTMENT OPERATIONS | 0.20 | 0.91 | (0.56) | 0.84 | 0.11 |
Less Distributions: | |||||
Distributions from net investment income | (0.26) | (0.30) | (0.30) | (0.32) | (0.35) |
Net Asset Value, End of Period | $10.89 | $10.95 | $10.34 | $11.20 | $10.68 |
Total Return2 | 1.87% | 8.93% | (5.15)% | 7.96% | 1.13% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.52% | 1.52% | 1.52% | 1.52% | 1.52% |
Net investment income | 2.48% | 2.84% | 2.73% | 2.87% | 3.26% |
Expense waiver/reimbursement3 | 0.10% | 0.11% | 0.08% | 0.08% | 0.09% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $2,429 | $2,815 | $3,824 | $5,137 | $7,401 |
Portfolio turnover | 29% | 5% | 7% | 15% | 8% |
1 | Per share number has been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
Assets: | ||
Total investment in securities, at value (identified cost $192,909,373) | $199,963,372 | |
Restricted cash (Note 2) | 108,000 | |
Receivable for investments sold | 4,515,000 | |
Income receivable | 2,576,179 | |
Receivable for shares sold | 90,527 | |
TOTAL ASSETS | 207,253,078 | |
Liabilities: | ||
Payable for investments purchased | $2,200,180 | |
Payable for shares redeemed | 256,521 | |
Bank overdraft | 166,790 | |
Payable for other service fees (Notes 2 and 5) | 45,599 | |
Payable for daily variation margin | 14,999 | |
Payable for investment adviser fee (Note 5) | 13,363 | |
Payable for administrative fee (Note 5) | 3,520 | |
Payable for distribution services fee (Note 5) | 1,556 | |
Accrued expenses (Note 5) | 64,564 | |
TOTAL LIABILITIES | 2,767,092 | |
Net assets for 18,792,237 shares outstanding | $204,485,986 | |
Net Assets Consists of: | ||
Paid-in capital | $214,616,105 | |
Net unrealized appreciation of investments and futures contracts | 7,032,248 | |
Accumulated net realized loss on investments and futures contracts | (17,350,089) | |
Undistributed net investment income | 187,722 | |
TOTAL NET ASSETS | $204,485,986 | |
Class A Shares: | ||
Net asset value per share ($202,057,331 ÷ 18,569,162 shares outstanding) no par value, unlimited shares authorized | $10.88 | |
Offering price per share (100/95.50 of $10.88) | $11.39 | |
Redemption proceeds per share | $10.88 | |
Class B Shares: | ||
Net asset value per share ($2,428,655 ÷ 223,075 shares outstanding) no par value, unlimited shares authorized | $10.89 | |
Offering price per share | $10.89 | |
Redemption proceeds per share (94.50/100 of $10.89) | $10.29 |
Investment Income: | |||
Interest | $8,606,855 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $859,807 | ||
Administrative fee (Note 5) | 168,218 | ||
Custodian fees | 12,525 | ||
Transfer agent fees | 106,314 | ||
Directors'/Trustees' fees (Note 5) | 2,846 | ||
Auditing fees | 26,648 | ||
Legal fees | 9,265 | ||
Distribution services fee (Note 5) | 19,736 | ||
Other service fees (Notes 2 and 5) | 536,045 | ||
Portfolio accounting fees | 90,238 | ||
Share registration costs | 31,639 | ||
Printing and postage | 22,587 | ||
Miscellaneous (Note 5) | 8,049 | ||
TOTAL EXPENSES | 1,893,917 | ||
Waiver and Reimbursement: | |||
Waiver of investment adviser fee (Note 5) | $(209,855) | ||
Reimbursement of other operating expenses (Notes 2 and 5) | (41,129) | ||
TOTAL WAIVER AND REIMBURSEMENT | (250,984) | ||
Net expenses | 1,642,933 | ||
Net investment income | 6,963,922 | ||
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts: | |||
Net realized gain on investments | 3,304,119 | ||
Net realized loss on futures contracts | (129,003) | ||
Net change in unrealized appreciation of investments | (4,531,151) | ||
Net change in unrealized depreciation of futures contracts | (21,751) | ||
Net realized and unrealized loss on investments and futures contracts | (1,377,786) | ||
Change in net assets resulting from operations | $5,586,136 |
Year Ended August 31 | 2015 | 2014 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $6,963,922 | $8,096,863 |
Net realized gain (loss) on investments and futures contracts | 3,175,116 | (2,335,039) |
Net change in unrealized appreciation/depreciation of investments and futures contracts | (4,552,902) | 15,333,368 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 5,586,136 | 21,095,192 |
Distributions to Shareholders: | ||
Distributions from net investment income | ||
Class A Shares | (6,719,516) | (8,006,426) |
Class B Shares | (63,054) | (89,155) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (6,782,570) | (8,095,581) |
Share Transactions: | ||
Proceeds from sale of shares | 13,477,630 | 18,490,234 |
Net asset value of shares issued to shareholders in payment of distributions declared | 4,791,702 | 5,547,806 |
Cost of shares redeemed | (34,708,941) | (50,630,071) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (16,439,609) | (26,592,031) |
Change in net assets | (17,636,043) | (13,592,420) |
Net Assets: | ||
Beginning of period | 222,122,029 | 235,714,449 |
End of period (including undistributed net investment income of $187,722 and $15,504, respectively) | $204,485,986 | $222,122,029 |
■ | Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium) unless the issuer's creditworthiness is impaired or other factors indicate that amortized cost is not an accurate estimate of the investment's fair value, in which case it would be valued in the same manner as a longer-term security. |
■ | 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. |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | 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. |
Other Service Fees Incurred | Other Service Fees Reimbursed | |
Class A Shares | $529,466 | $(41,129) |
Class B Shares | 6,579 | — |
TOTAL | $536,045 | $(41,129) |
Fair Value of Derivative Instruments | ||
Liability | ||
Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||
Interest rate contracts | Payable for daily variation margin | $21,751* |
* | Includes cumulative depreciation 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 | |
Interest rate contracts | $(129,003) |
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | |
Futures | |
Interest rate contracts | $(21,751) |
Year Ended August 31 | 2015 | 2014 | ||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,212,836 | $13,309,209 | 1,721,422 | $18,311,012 |
Shares issued to shareholders in payment of distributions declared | 431,501 | 4,730,100 | 511,013 | 5,461,420 |
Shares redeemed | (3,113,219) | (34,105,831) | (4,631,540) | (49,168,945) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | (1,468,882) | $(16,066,522) | (2,399,105) | $(25,396,513) |
Year Ended August 31 | 2015 | 2014 | ||
Class B Shares: | Shares | Amount | Shares | Amount |
Shares sold | 15,332 | $168,420 | 16,729 | $179,222 |
Shares issued to shareholders in payment of distributions declared | 5,616 | 61,603 | 8,086 | 86,386 |
Shares redeemed | (54,985) | (603,110) | (137,553) | (1,461,126) |
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS | (34,037) | $(373,087) | (112,738) | $(1,195,518) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (1,502,919) | $(16,439,609) | (2,511,843) | $(26,592,031) |
Increase (Decrease) | |
Undistributed Net Investment Income (Loss) | Accumulated Net Realized Gain (Loss) |
(9,134) | 9,134 |
2015 | 2014 | |
Tax-exempt income | 6,782,570 | $8,095,581 |
Undistributed tax-exempt income | 187,722 |
Net unrealized appreciation | 7,063,674 |
Capital loss carryforwards | (17,381,515) |
Expiration Year | Short-Term | Long-Term | Total |
2017 | $7,526,537 | NA | $7,526,537 |
2018 | $9,851,417 | NA | $9,851,417 |
2019 | $3,561 | NA | $3,561 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.150% | on the first $5 billion |
0.125% | on the next $5 billion |
0.100% | on the next $10 billion |
0.075% | on assets in excess of $20 billion |
Share Class Name | Percentage of Average Daily Net Assets of Class |
Class A Shares | 0.05% |
Class B Shares | 0.75% |
Distribution Services Fee Incurred | |
Class B Shares | $19,736 |
Purchases | $ 59,529,799 |
Sales | $ 79,798,382 |
October 26, 2015
Beginning Account Value 3/1/2015 | Ending Account Value 8/31/2015 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,002.80 | $3.79 |
Class B Shares | $1,000 | $998.90 | $7.66 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,021.42 | $3.82 |
Class B Shares | $1,000 | $1,017.54 | $7.73 |
1 | Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 0.75% |
Class B Shares | 1.52% |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John F. Donahue* Birth Date: July 28, 1924 Trustee Indefinite Term Began serving: August 1990 | Principal Occupations: Director or Trustee of the Federated Fund Family; Chairman and Director, Federated Investors, Inc.; Chairman of the Federated Fund Family's Executive Committee. Previous Positions: Chairman of the Federated Fund Family; Trustee, Federated Investment Management Company; Chairman and Director, Federated Investment Counseling. |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: August 1990 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Family; Director or Trustee of the Funds in the Federated Fund Family; President, Chief Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd. |
* | Family relationships and reasons for “interested” status: John F. Donahue is the father of J. Christopher Donahue; both are “interested” due to their beneficial ownership of shares of Federated Investors, Inc. and the positions they hold with Federated and its subsidiaries. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; Chairman and CEO, The Collins Group, Inc. (a private equity firm). Other Directorships Held: Director, Chair of the Compensation Committee, Audit Committee member, KLX Corp. Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director, FleetBoston Financial Corp.; Director and Audit Committee Member, Bank of America Corp. and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee of the Federated Fund Family; Retired. Other Directorships Held: Director, Chair of the Audit Committee, Governance Committee, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP. Mr. Hough is an Executive Committee member of the United States Golf Association, he serves on the President's Cabinet and Business School Board of Visitors for the University of Alabama and is on the Business School Board of Visitors for Wake Forest University. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Fund Family; Adjunct Professor of Law, Duquesne University School of Law. Other Directorships Held: Director, CONSOL Energy Inc. Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously served as: Associate General Secretary, Diocese of Pittsburgh; Professor of Law, Duquesne University School of Law and was a member of the Superior Court of Pennsylvania. Judge Lally-Green also holds the positions of: Member, Pennsylvania State Board of Education; Director, Saint Vincent College; Director and Chair, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Our Campaign for the Church Alive!, Inc.; Director, Pennsylvania Bar Institute; and Director, Cardinal Wuerl North Catholic High School, Inc. Judge Lally-Green has held the positions of: Director, Auberle; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; and Director, Catholic High Schools of the Diocese of Pittsburgh, Inc. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Peter E. Madden Birth Date: March 16, 1942 Trustee Indefinite Term Began serving: August 1991 | Principal Occupation: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Fund Family; Retired. Other Directorships Held: None. Qualifications: Mr. Madden has served in several business management, mutual fund services and directorship positions throughout his career. Mr. Madden previously served as President, Chief Operating Officer and Director, State Street Bank and Trust Company (custodian bank) and State Street Corporation (financial services). He was Director, VISA USA and VISA International and Chairman and Director, Massachusetts Bankers Association. Mr. Madden served as Director, Depository Trust Corporation and Director, The Boston Stock Exchange. Mr. Madden also served as a Representative to the Commonwealth of Massachusetts General Court. |
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Trustee Indefinite Term Began serving: January 1999 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Mansfield has served in several banking, business management and educational roles and directorship positions throughout his career. Mr. Mansfield previously served as Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly, Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University; Executive Vice President DVC Group, Inc. (marketing, communications and technology). |
Thomas M. O'Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: October 2006 | Principal Occupations: Director or Trustee, Vice Chair of the Audit Committee of the Federated Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O'Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O'Neill serves as Director, Medicines for Humanity and Director, The Golisano Children's Museum of Naples, Florida. Mr. O'Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey serves as Board Member, Epilepsy Foundation of Western Pennsylvania and Board member, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: June 1999 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
John W. McGonigle Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Officer since: August 1990 | Principal Occupations: Executive Vice President and Secretary of the Federated Fund Family; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc. Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp. and Edgewood Services, Inc.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Investors, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Richard B. Fisher Birth Date: May 17, 1923 VICE CHAIRMAN Officer since: August 2002 | Principal Occupations: Vice Chairman or Vice President of some of the Funds in the Federated Fund Family; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp. Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Family; Executive Vice President, Federated Investors, Inc.; Director and Chief Executive Officer, Federated Securities Corp. |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER Officer since: January 2005 | Principal Occupations: Mr. Germain is Chief Legal Officer of the Federated Fund Family. He is General Counsel and Vice President, Federated Investors, Inc.; President, Federated Administrative Services and Federated Administrative Services, Inc.; Vice President, Federated Securities Corp.; Secretary, Federated Private Asset Management, Inc.; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Fund Family; Vice President and Chief Compliance Officer of Federated Investors, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Investors, Inc. Prior to joining Federated, Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Robert J. Ostrowski Birth Date: April 26, 1963 Chief Investment Officer Officer since: May 2004 | Principal Occupations: Robert J. Ostrowski joined Federated in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated's taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund's Adviser in 2009 and served as a Senior Vice President of the Fund's Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University. |
J. Scott Albrecht Birth Date: June 1, 1960 VICE PRESIDENT Officer since: November 1999 Portfolio Manager since: March 1995 | Principal Occupations: J. Scott Albrecht has been the Fund's portfolio manager since March 1995. He is Vice President of the Trust with respect to the Fund. Mr. Albrecht joined Federated in 1989. He became a Senior Vice President of the Fund's Adviser in January 2005 and served as a Vice President of the Fund's Adviser from 1994 through 2004. He has been a Senior Portfolio Manager since 1997 and was a Portfolio Manager from 1994 to 1996. Mr. Albrecht has received the Chartered Financial Analyst designation and holds an M.S. in Public Management from Carnegie Mellon University. |
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 313923807
2015 ©Federated Investors, Inc.
Item 2. Code of Ethics
(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics (the "Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers") that applies to the registrant's Principal Executive Officer and Principal Financial Officer; the registrant's Principal Financial Officer also serves as the Principal Accounting Officer.
(c) There was no amendment to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.
(d) There was no waiver granted, either actual or implicit, from a provision to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.
(e) Not Applicable
(f)(3) The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.
Item 3. Audit Committee Financial Expert
The registrant's Board has determined that each of the following members of the Board's Audit Committee is an “audit committee financial expert,” and is "independent," for purposes of this Item: John T. Collins, Thomas M. O'Neill and John S. Walsh.
Item 4. Principal Accountant Fees and Services
(a) Audit Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2015 - $141,420
Fiscal year ended 2014 - $137,450
(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2015 - $0
Fiscal year ended 2014 - $0
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $3,006 respectively. Fiscal year ended 2014- Audit consents issued for N-14 merger documents.
(c) Tax Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2015 - $0
Fiscal year ended 2014 - $0
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(d) All Other Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2015 - $0
Fiscal year ended 2014 - $0
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(e)(1) Audit Committee Policies regarding Pre-approval of Services.
The Audit Committee is required to pre-approve audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor’s independence. Unless a type of service to be provided by the independent auditor has received general pre-approval, it will require specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.
Certain services have the general pre-approval of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate its responsibilities to pre-approve services performed by the independent auditor to management.
The Audit Committee has delegated pre-approval authority to its Chairman. The Chairman will report any pre-approval decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with such pre-approval authority when the Chairman is unavailable.
AUDIT SERVICES
The annual Audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee must approve any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.
In addition to the annual Audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other Audit Services, which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain Audit services, all other Audit services must be specifically pre-approved by the Audit Committee.
AUDIT-RELATED SERVICES
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of Audit-related services does not impair the independence of the auditor, and has pre-approved certain Audit-related services, all other Audit-related services must be specifically pre-approved by the Audit Committee.
TAX SERVICES
The Audit Committee believes that the independent auditor can provide Tax services to the Company such as tax compliance, tax planning and tax advice without impairing the auditor’s independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved certain Tax services, all Tax services involving large and complex transactions must be specifically pre-approved by the Audit Committee.
ALL OTHER SERVICES
With respect to the provision of services other than audit, review or attest services the pre-approval requirement is waived if:
(1) | The aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues paid by the registrant, the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant to its accountant during the fiscal year in which the services are provided; |
(2) | Such services were not recognized by the registrant, the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant at the time of the engagement to be non-audit services; and |
(3) | Such services are promptly brought to the attention of the Audit Committee of the issuer and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee who are members of the board of directors to whom authority to grant such approvals has been delegated by the Audit Committee. |
The Audit Committee may grant general pre-approval to those permissible non-audit services classified as All Other services that it believes are routine and recurring services, and would not impair the independence of the auditor.
The SEC’s rules and relevant guidance should be consulted to determine the precise definitions of prohibited non-audit services and the applicability of exceptions to certain of the prohibitions.
PRE-APPROVAL FEE LEVELS
Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee.
PROCEDURES
Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by both the independent auditor and the Principal Accounting Officer and/or Internal Auditor, and must include a joint statement as to whether, in their view, the request or application is consistent with the SEC’s rules on auditor independence.
(e)(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
4(b)
Fiscal year ended 2015 – 0%
Fiscal year ended 2014 - 0%
Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(c)
Fiscal year ended 2015 – 0%
Fiscal year ended 2014 – 0%
Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(d)
Fiscal year ended 2015 – 0%
Fiscal year ended 2014 – 0%
Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
(f) | NA |
(g) | Non-Audit Fees billed to the registrant, the registrant’s investment adviser, and certain entities controlling, controlled by or under common control with the investment adviser: |
Fiscal year ended 2015 - $0
Fiscal year ended 2014 - $16,700
(h) The registrant’s Audit Committee has considered that the provision of non-audit services that were rendered to the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
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. 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 Municipal Securities Income Trust
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date October 26, 2015
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 October 26, 2015
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date October 26, 2015