Federated Hermes Municipal Ultrashort Fund
Portfolio of Investments
December 31, 2023 (unaudited)
Principal Amount | Value | ||
MUNICIPAL BONDS—75.9% | |||
Alabama—8.2% | |||
$ 5,000,000 | Black Belt Energy Gas District, AL, Gas Prepay Revenue Bonds Project No. 4 (Series 2019A-1), (Morgan Stanley GTD), 4.000%, Mandatory Tender 12/1/2025 | $ 5,012,011 | |
1,000,000 | Black Belt Energy Gas District, AL, Gas Revenue Bonds (Series 2022B-1), (Goldman Sachs Group, Inc. GTD), 4.000%, Mandatory Tender 10/1/2027 | 1,002,216 | |
25,500,000 | 1 | Black Belt Energy Gas District, AL, Gas Revenue Bonds Project No.7 (Series 2021C-2) FRNs, (Goldman Sachs Group, Inc. GTD), 4.220% (SIFMA 7-day +0.350%), Mandatory Tender 12/1/2026 | 24,876,183 |
25,000,000 | Mobile, AL IDB (Alabama Power Co.), PCRB (Series 2007B) Weekly, 3.920%, Mandatory Tender 6/2/2026 | 25,327,860 | |
3,650,000 | Selma, AL IDB (International Paper Co.), Gulf Opportunity Zone Revenue Refunding Bonds (Series 2019A), 2.000%, Mandatory Tender 10/1/2024 | 3,586,950 | |
5,250,000 | Selma, AL IDB (International Paper Co.), Gulf Opportunity Zone Revenue Refunding Bonds (Series 2020A), 1.375%, Mandatory Tender 6/16/2025 | 5,035,211 | |
30,000,000 | 1 | Southeast Alabama Gas Supply District, Gas Supply Revenue Bonds Project No. 2 (Series 2018B) FRNs, (Morgan Stanley GTD), 4.506% (1-month USLIBOR x 0.67 +0.850%), Mandatory Tender 6/1/2024 | 29,952,108 |
TOTAL | 94,792,539 | ||
Arizona—1.2% | |||
630,000 | 1 | Arizona Health Facilities Authority (Banner Health), (Series 2015B) FRNs, (United States Treasury PRF 11/4/2025@100), 4.120% (SIFMA 7-day +0.250%), 1/1/2046 | 630,866 |
3,870,000 | 1 | Arizona Health Facilities Authority (Banner Health), (Series 2015B) FRNs, 4.120% (SIFMA 7-day +0.250%), Mandatory Tender 11/4/2026 | 3,805,562 |
1,000,000 | Coconino County, AZ Pollution Control Corp. (Nevada Power Co.), Pollution Control Refunding Revenue Bonds (Series 2017B), 3.750%, Mandatory Tender 3/31/2026 | 1,008,591 | |
8,000,000 | Maricopa County, AZ, IDA (Banner Health), Revenue Bonds (Series 2023A-1), 5.000%, Mandatory Tender 5/15/2026 | 8,341,725 | |
TOTAL | 13,786,744 | ||
Arkansas—0.6% | |||
3,500,000 | Arkansas Development Finance Authority (APP Fair Oaks Partners, LLLP), COL Multifamily Housing Bonds (Series 2023), (United States Treasury GTD), 3.550%, Mandatory Tender 6/1/2027 | 3,511,620 | |
3,895,000 | Arkansas State, Federal Highway Grant and Tax Revenue Bonds (Series 2012), 3.000%, 4/1/2024 | 3,891,254 | |
TOTAL | 7,402,874 | ||
California—7.0% | |||
7,250,000 | 1 | Bay Area Toll Authority, CA, San Francisco Bay Area Toll Bridge Revenue Bonds (Series 2021B) FRNs, 4.150% (SIFMA 7-day +0.280%), Mandatory Tender 4/1/2024 | 7,237,744 |
9,000,000 | 1 | Bay Area Toll Authority, CA, San Francisco Bay Area Toll Bridge Revenue Bonds (Series 2021C) FRNs, 4.320% (SIFMA 7-day +0.450%), Mandatory Tender 4/1/2026 | 8,882,483 |
7,000,000 | 1 | Bay Area Toll Authority, CA, San Francisco Bay Area Toll Bridge Revenue Bonds (SIFMA Index Rate Bonds Series 2021D) FRNs, 4.170% (SIFMA 7-day +0.300%), Mandatory Tender 4/1/2027 | 6,828,616 |
7,000,000 | 1 | California Infrastructure & Economic Development Bank (California Academy of Sciences), Revenue Bonds (Series 2018D) FRNs, 4.220% (SIFMA 7-day +0.350%), Mandatory Tender 8/1/2024 | 6,953,979 |
6,750,000 | 1 | California Infrastructure & Economic Development Bank (Los Angeles County Museum of Art), Refunding Revenue Bonds (Series 2021B) FRNs, 4.570% (SIFMA 7-day +0.700%), Mandatory Tender 6/1/2026 | 6,577,270 |
27,500,000 | California PCFA (Republic Services, Inc.), (Series 2023), 4.250%, Mandatory Tender 2/15/2024 | 27,483,736 | |
1,710,000 | 2 | California Public Finance Authority (Kendal at Sonoma), Enso Village TEMPS-50 Senior Living Revenue Refunding Bonds (Series B-3), 2.125%, 11/15/2027 | 1,708,403 |
9,300,000 | San Diego, CA Housing Authority (Bernardo Family Housing, LP), SkyLINE Multifamily Housing Revenue Bonds (Series 2023B), (United States Treasury GTD), 5.000%, Mandatory Tender 11/1/2026 | 9,736,690 | |
2,000,000 | Western Placer, CA Unified School District, Community Facilities District No. 1 2020 BANs, 2.000%, 6/1/2025 | 1,946,523 | |
2,730,000 | Western Placer, CA Unified School District, Community Facilities District No.2 2020 BANs, 2.000%, 6/1/2025 | 2,649,730 | |
TOTAL | 80,005,174 | ||
Colorado—1.3% | |||
4,860,000 | 1 | Colorado School of Mines Board of Trustees (Colorado School of Mines, CO), Institutional Enterprise Revenue Refunding Bonds (Series 2022D) FRNs, 4.740% (SIFMA 7-day +0.870%), 12/1/2025 | 4,860,580 |
1
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Colorado—continued | |||
$ 6,000,000 | 1 | Colorado State Health Facilities Authority (Intermountain Healthcare Obligated Group), Revenue Bonds (Series 2022D) FRNs, 4.420% (SIFMA 7-day +0.550%), Mandatory Tender 8/17/2026 | $ 5,953,011 |
4,000,000 | 1 | E-470 Public Highway Authority, CO, Senior Revenue SOFR Index Term Rate Bonds (Series 2021B) FRNs, 3.961% (SOFR x 0.67 +0.350%), Mandatory Tender 9/1/2024 | 3,989,479 |
TOTAL | 14,803,070 | ||
Connecticut—0.6% | |||
3,000,000 | Connecticut State Health & Educational Facilities (Yale University), Revenue Bonds (Series 2017C-2), 2.800%, Mandatory Tender 2/3/2026 | 3,001,970 | |
4,000,000 | Connecticut State Health & Educational Facilities (Yale University), Revenue Bonds (Series X-2), 0.250%, Mandatory Tender 2/9/2024 | 3,986,018 | |
TOTAL | 6,987,988 | ||
Florida—1.6% | |||
3,500,000 | Broward County, FL HFA (St. Joseph Manor II, LLLP), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury COL), 3.500%, Mandatory Tender 4/1/2026 | 3,500,771 | |
775,000 | Escambia County, FL (International Paper Co.), Environmental Improvement Revenue Refunding Bonds (Series 2019B), 2.000%, Mandatory Tender 10/1/2024 | 761,613 | |
2,500,000 | Lee County, FL HFA (Aria Landings), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury GTD), 3.550%, Mandatory Tender 8/1/2025 | 2,498,331 | |
11,500,000 | 1 | Miami-Dade County, FL IDA (Waste Management, Inc.), Solid Waste Disposal Revenue Bonds (Series 2018B) FRNs, 3.755% (SIFMA 7-day +0.375%), Mandatory Tender 7/1/2024 | 11,439,918 |
TOTAL | 18,200,633 | ||
Georgia—2.4% | |||
6,700,000 | Burke County, GA Development Authority (Georgia Power Co.), Vogtle Project PCRB (Fifth Series 1994), 2.150%, Mandatory Tender 6/13/2024 | 6,620,514 | |
3,000,000 | Burke County, GA Development Authority (Georgia Power Co.), Vogtle Project PCRB (First Series 1996), 3.875%, Mandatory Tender 3/6/2026 | 3,025,078 | |
5,650,000 | Burke County, GA Development Authority (Georgia Power Co.), Vogtle Project PCRB (First Series 2012), 2.875%, Mandatory Tender 8/19/2025 | 5,549,437 | |
6,495,000 | Main Street Natural Gas, Inc., GA, Gas Supply Revenue Bonds (Series 2021A), (Royal Bank of Canada GTD), 4.000%, Mandatory Tender 9/1/2027 | 6,533,112 | |
1,000,000 | Main Street Natural Gas, Inc., GA, Gas Supply Revenue Bonds (Series 2022A), (Citigroup, Inc. GTD), 4.000%, 12/1/2025 | 1,000,903 | |
3,500,000 | Monroe County, GA Development Authority (Georgia Power Co.), Scherer Project PCRB (First Series 2013), 3.875%, Mandatory Tender 3/6/2026 | 3,529,257 | |
1,750,000 | Monroe County, GA Development Authority (Georgia Power Co.), Scherer Project PCRB (Second Series 2009), 3.875%, Mandatory Tender 3/6/2026 | 1,764,629 | |
TOTAL | 28,022,930 | ||
Illinois—2.1% | |||
2,000,000 | Chicago, IL O’Hare International Airport, General Airport Senior Lien Revenue Refunding Bonds (Series 2022C), 5.000%, 1/1/2024 | 2,000,000 | |
2,000,000 | Chicago, IL O’Hare International Airport, General Airport Senior Lien Revenue Refunding Bonds (Series 2022C), 5.000%, 1/1/2025 | 2,028,538 | |
3,500,000 | Chicago, IL O’Hare International Airport, General Airport Senior Lien Revenue Refunding Bonds (Series 2022C), 5.000%, 1/1/2026 | 3,608,273 | |
2,000,000 | Illinois Housing Development Authority (6900 Crandon LIHTC, LLC), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury GTD), 5.000%, Mandatory Tender 2/1/2026 | 2,058,419 | |
2,170,000 | Illinois Housing Development Authority (South Shore HHDC LIHTC, LLC), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury GTD), 5.000%, Mandatory Tender 2/1/2026 | 2,233,384 | |
3,000,000 | Illinois State, UT GO Bonds (Series 2023D), 5.000%, 7/1/2025 | 3,081,848 | |
3,500,000 | Illinois State, UT GO Bonds (Series 2023D), 5.000%, 7/1/2026 | 3,666,469 | |
5,000,000 | Illinois State, UT GO Bonds (Series 2023D), 5.000%, 7/1/2027 | 5,339,969 | |
TOTAL | 24,016,900 | ||
Indiana—0.5% | |||
6,475,000 | 1 | Indiana State Finance Authority (Deaconess Health System), Revenue Bonds (Series 2021B) FRNs, 4.170% (SIFMA 7-day +0.300%), Mandatory Tender 3/1/2027 | 6,273,908 |
Iowa—0.5% | |||
3,000,000 | Iowa Finance Authority (Gevo NW Iowa RNG, LLC), Solid Waste Facility Revenue Bonds Renewable Gas Project (Series 2021), (Citibank N.A., New York LOC), 1.500%, Mandatory Tender 4/1/2024 | 2,978,779 |
2
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Iowa—continued | |||
$ 3,500,000 | 1 | Iowa Finance Authority (Lifespace Communities, Inc.), Revenue Bonds (Series 2021B) FRNs, 4.323% (SOFR x 0.70 +0.550%), Mandatory Tender 5/15/2026 | $ 3,239,673 |
TOTAL | 6,218,452 | ||
Kentucky—2.4% | |||
7,795,000 | Kentucky Housing Corp. (Beecher IV, LLC), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury COL), 5.000%, Mandatory Tender 9/1/2026 | 8,032,471 | |
3,500,000 | Kentucky Housing Corp. (Cambridge Preservation LP), Multifamily Housing Revenue Bonds (Series 2021), (United States Treasury GTD), 0.300%, Mandatory Tender 2/1/2024 | 3,488,488 | |
13,000,000 | Public Energy Authority of Kentucky, Gas Supply Revenue Bonds (Series 2018B), (BP PLC GTD), 4.000%, Mandatory Tender 1/1/2025 | 13,002,877 | |
3,250,000 | Rural Water Financing Agency, KY, Public Projects Construction Notes (Series 2023A), 3.900%, 11/1/2025 | 3,250,237 | |
TOTAL | 27,774,073 | ||
Louisiana—2.4% | |||
3,000,000 | Louisiana Local Government Environmental Facilities Community Development Authority (East Baton Rouge Sewerage Commission), Subordinate Lien Multi-Modal Revenue Refunding Bonds (Series 2020B), 0.875%, Mandatory Tender 2/1/2025 | 2,906,920 | |
8,000,000 | Louisiana State Offshore Terminal Authority (Loop LLC), Deepwater Port Revenue Bonds (Series 2007B-1B), 4.200%, Mandatory Tender 10/1/2025 | 8,081,262 | |
2,500,000 | Louisiana State Offshore Terminal Authority (Loop LLC), Deepwater Port Revenue Bonds (Series 2007B-2A), 4.200%, Mandatory Tender 10/1/2026 | 2,552,889 | |
8,885,000 | St. John the Baptist Parish, LA (Marathon Oil Corp.), Revenue Refunding Bonds (Series 2017B-1), 2.125%, Mandatory Tender 7/1/2024 | 8,760,874 | |
5,500,000 | St. John the Baptist Parish, LA (Marathon Oil Corp.), Revenue Refunding Bonds (Series 2019 A-1), 4.050%, Mandatory Tender 7/1/2026 | 5,438,374 | |
TOTAL | 27,740,319 | ||
Massachusetts—0.3% | |||
3,250,000 | 1 | Massachusetts Development Finance Agency (Mass General Brigham), Revenue Bonds (Series 2019T-1) FRNs, 4.470% (SIFMA 7-day +0.600%), Mandatory Tender 1/29/2026 | 3,219,761 |
Michigan—0.4% | |||
2,000,000 | Michigan State Finance Authority (Beaumont Health Spectrum Health System), Hospital Revenue Refunding Bonds (Series 2022A), 5.000%, 4/15/2024 | 2,009,838 | |
3,125,000 | 1 | Michigan State Finance Authority (Beaumont Health Spectrum Health System), Hospital Revenue Refunding Bonds (Series 2022C) FRNs, 4.620% (SIFMA 7-day +0.750%), Mandatory Tender 4/15/2027 | 3,107,206 |
TOTAL | 5,117,044 | ||
Mississippi—0.3% | |||
2,940,000 | Jackson County, MS, UT GO Water System Bonds (Series 1994), (Chevron Corp. GTD), 3.750%, Mandatory Tender 2/1/2024 | 2,940,000 | |
Missouri—0.6% | |||
6,300,000 | Kansas City, MO Planned Industrial Expansion Authority (The Depot on Old Santa Fe, LP), The Depot on Old Santa Fe Apartments Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury GTD), 5.000%, Mandatory Tender 7/1/2027 | 6,603,219 | |
Nevada—1.1% | |||
2,000,000 | Clark County, NV (Nevada Power Co.), Pollution Control Refunding Revenue Bonds (Series 2017), 3.750%, Mandatory Tender 3/1/2026 | 2,022,539 | |
3,500,000 | Director of the State of Nevada Department of Business and Industry (Republic Services, Inc.), Solid Waste Disposal Revenue Bonds (Series 2001), 4.500%, Mandatory Tender 6/3/2024 | 3,502,677 | |
7,000,000 | Humboldt County, NV (Idaho Power Co.), PCR Refunding Bonds (Series 2003), 1.450%, 12/1/2024 | 6,847,837 | |
TOTAL | 12,373,053 | ||
New Hampshire—0.6% | |||
1,500,000 | National Finance Authority, NH (Waste Management, Inc.), Solid Waste Disposal Refunding Revenue Bonds (Series 2019A-1), 2.150%, Mandatory Tender 7/1/2024 | 1,487,913 | |
4,000,000 | National Finance Authority, NH (Waste Management, Inc.), Solid Waste Disposal Refunding Revenue Bonds (Series 2019A-3), 2.150%, Mandatory Tender 7/1/2024 | 3,962,190 | |
2,000,000 | National Finance Authority, NH (Waste Management, Inc.), Solid Waste Disposal Refunding Revenue Bonds (Series 2019A-4), 2.150%, Mandatory Tender 7/1/2024 | 1,981,095 | |
TOTAL | 7,431,198 | ||
New Jersey—3.2% | |||
9,000,000 | Belleville, NJ BANs, 5.000%, 7/10/2024 | 9,049,124 |
3
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
New Jersey—continued | |||
$ 4,238,130 | Haledon, NJ BANs, 4.500%, 9/27/2024 | $ 4,261,316 | |
6,650,000 | New Jersey EDA (New Jersey State), School Facilities Construction Refunding Bonds (Series 2023RRR), 5.000%, 3/1/2024 | 6,670,591 | |
5,000,000 | New Jersey EDA (New Jersey State), School Facilities Construction Refunding Bonds (Series 2023RRR), 5.000%, 3/1/2025 | 5,119,025 | |
3,100,000 | New Jersey EDA (New Jersey-American Water Co., Inc.), Water Facilities Refunding Revenue Bonds (Series 2020E), 0.850%, 12/1/2025 | 2,884,656 | |
2,665,000 | New Jersey Housing & Mortgage Finance Agency (Hamilton Square Urban Renewal LLC), Multifamily Conduit Revenue Bonds (Series 2023B), (United States Treasury GTD), 4.080%, Mandatory Tender 12/1/2025 | 2,690,861 | |
4,000,000 | New Jersey Housing & Mortgage Finance Agency (New Center City Apartments Urban Renewal, LLC), Multifamily Conduit Revenue Bonds (Series 2023-C), (United States Treasury COL), 5.000%, 6/1/2025 | 4,074,259 | |
2,210,000 | New Jersey State Transportation Trust Fund Authority (New Jersey State), Transportation System Bonds (Series 2021A), 5.000%, 6/15/2025 | 2,277,693 | |
TOTAL | 37,027,525 | ||
New Mexico—1.4% | |||
5,000,000 | Farmington, NM (Public Service Co., NM), Pollution Control Revenue Refunding Bonds San Juan Project (Series 2010C), 1.150%, Mandatory Tender 6/4/2024 | 4,930,352 | |
3,000,000 | New Mexico Mortgage Finance Authority (JLG NM ABQ 2023, LLLP), Mountain View I & II Apartments Project Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury GTD), 5.000%, Mandatory Tender 9/1/2025 | 3,056,470 | |
4,500,000 | New Mexico Mortgage Finance Authority (JLG NM SAF 2023, LLLP), Santa Fe Apartments and Sangre De Cristo Project Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury GTD), 5.000%, Mandatory Tender 6/1/2025 | 4,544,759 | |
4,000,000 | New Mexico State Hospital Equipment Loan Council (Presbyterian Healthcare Services), Hospital System Revenue Bonds (Series 2019B), 5.000%, Mandatory Tender 8/1/2025 | 4,108,349 | |
TOTAL | 16,639,930 | ||
New York—4.6% | |||
16,693,774 | Adirondack, NY Central School District BANs, 4.500%, 6/27/2024 | 16,759,394 | |
4,485,000 | Carthage, NY Central School District BANs, 4.500%, 6/26/2024 | 4,500,549 | |
6,270,000 | Groton Central School District, NY BANs, 4.750%, 6/20/2024 | 6,296,758 | |
4,500,000 | Lloyd, NY BANs, 4.250%, 2/9/2024 | 4,500,886 | |
1,500,000 | Mayfield, NY Central School District BANs, 4.500%, 6/20/2024 | 1,504,645 | |
6,330,000 | 1 | Metropolitan Transportation Authority, NY (MTA Transportation Revenue), Transportation Revenue Variable Rate Refunding Bonds (Series 2005D-1) FRNs, 3.941% (SOFR x 0.67 +0.330%), Mandatory Tender 4/1/2024 | 6,324,217 |
2,000,000 | Monroe County, NY IDA (Andrews Terrace Community Partners, LP), Multifamily Housing Revenue Bonds (Series 2023B-2), (United States Treasury GTD), 5.000%, Mandatory Tender 7/1/2027 | 2,081,201 | |
2,250,000 | New York City, NY, UT GO Bonds (Fiscal 2023 Series C), 5.000%, 8/1/2025 | 2,332,064 | |
1,000,000 | New York Transportation Development Corporation (JFK International Air Terminal LLC), Special Facilities Revenue Bonds (Series 2020C), 5.000%, 12/1/2024 | 1,014,991 | |
8,000,000 | Newburgh, NY BANs, 4.450%, 8/9/2024 | 8,009,258 | |
TOTAL | 53,323,963 | ||
North Carolina—2.2% | |||
2,950,000 | Asheville, NC Housing Authority (Vanderbilt TC2 Senior Housing LP), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury COL), 5.000%, Mandatory Tender 11/1/2025 | 3,025,697 | |
4,000,000 | Charlotte-Mecklenburg Hospital Authority, NC (Atrium Health (previously Carolinas HealthCare) System), Variable Rate Health Care Revenue Bonds (Series 2018E), 0.800%, Mandatory Tender 10/31/2025 | 3,821,601 | |
3,500,000 | Charlotte-Mecklenburg Hospital Authority, NC (Atrium Health (previously Carolinas HealthCare) System), Variable Rate Health Care Revenue Bonds (Series 2021B), 5.000%, Mandatory Tender 12/2/2024 | 3,552,345 | |
850,000 | Columbus County, NC Industrial Facilities & PCFA (International Paper Co.), Recovery Zone Facility Revenue Refunding Bonds (Series 2019B), 2.000%, Mandatory Tender 10/1/2024 | 835,317 | |
1,000,000 | Columbus County, NC Industrial Facilities & PCFA (International Paper Co.), Recovery Zone Facility Revenue Refunding Bonds (Series 2020A), 1.375%, Mandatory Tender 6/16/2025 | 959,088 | |
13,635,000 | 1 | University of North Carolina at Chapel Hill, General Revenue Refunding Bonds (SOFR Floating Rate Note) (Series 2019B) FRNs, 4.261% (SOFR x 0.67 +0.650%), Mandatory Tender 6/1/2025 | 13,648,578 |
TOTAL | 25,842,626 | ||
North Dakota—0.9% | |||
10,000,000 | Cass County Joint Water Resource District, ND, UT GO Temporary Refunding Improvement Bonds (Series 2021A), 0.480%, 5/1/2024 | 9,824,966 |
4
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Ohio—3.2% | |||
$ 4,350,000 | Cuyahoga, OH Metropolitan Housing Authority (Wade Park Apartments), Multifamily Housing Revenue Bonds (Series 2022), (United States Treasury COL), 4.750%, Mandatory Tender 12/1/2025 | $ 4,431,871 | |
18,425,000 | Lancaster, OH Port Authority, Gas Supply Revenue Refunding Bonds (Series 2019), (Royal Bank of Canada GTD), 5.000%, Mandatory Tender 2/1/2025 | 18,660,272 | |
2,917,000 | Ohio HFA (Riverview San Marco, LLC), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury COL), 5.000%, Mandatory Tender 8/1/2025 | 2,977,497 | |
2,665,000 | Ohio HFA (Thornwood Commons Homes, LLC), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury COL), 5.000%, Mandatory Tender 12/1/2025 | 2,735,267 | |
2,500,000 | Ohio State Hospital Revenue (Cleveland Clinic), Hospital Revenue Bonds (Series 2019C), 2.750%, Mandatory Tender 5/1/2028 | 2,488,589 | |
5,500,000 | River Valley, OH Local School District BANs, 5.000%, 6/3/2024 | 5,519,954 | |
TOTAL | 36,813,450 | ||
Oregon—0.6% | |||
3,000,000 | Multnomah County, OR Hospital Facilities Authority (Terwilliger Plaza, Inc.), Parkview Project TEMPS-50 Revenue and Refunding Bonds (Series 2021B-2), 0.950%, 6/1/2027 | 2,685,141 | |
1,000,000 | Multnomah County, OR Hospital Facilities Authority (Terwilliger Plaza, Inc.), Parkview Project TEMPS-65 Revenue and Refunding Bonds (Series 2021B-1), 1.200%, 6/1/2028 | 869,651 | |
3,300,000 | Oregon State Housing and Community Services Department (Susan Emmons Apartments LP), (United States Treasury COL), 4.350%, 6/1/2024 | 3,307,183 | |
TOTAL | 6,861,975 | ||
Pennsylvania—5.2% | |||
5,500,000 | 1 | Allegheny County, PA Higher Education Building Authority (Carnegie Mellon University), Revenue Bonds (Series 2022A) FRNs, 4.063% (SOFR x 0.70 +0.290%), Mandatory Tender 8/1/2027 | 5,436,603 |
2,490,000 | 1 | Bethlehem, PA Area School District Authority, School Revenue Bonds (Series 2021A) FRNs, 3.961% (SOFR x 0.67 +0.350%), Mandatory Tender 11/1/2025 | 2,450,253 |
3,245,000 | 1 | Bethlehem, PA Area School District Authority, School Revenue Bonds (Series 2021B) FRNs, 3.961% (SOFR x 0.67 +0.350%), Mandatory Tender 11/1/2025 | 3,193,201 |
15,000,000 | 1 | Delaware Valley, PA Regional Finance Authority, Local Government Revenue Bonds (Series 2022C) FRNs, 4.101% (SOFR x 0.67 +0.490%), Mandatory Tender 3/1/2027 | 14,518,733 |
9,410,000 | 1 | Lehigh County, PA General Purpose Authority (Muhlenberg College), College Revenue Bonds (Series 2019) FRNs, 4.450% (SIFMA 7-day +0.580%), Mandatory Tender 11/1/2024 | 9,407,027 |
4,000,000 | 1 | Northampton County, PA General Purpose Authority (St. Luke’s University Health Network), Variable Rate Hospital Revenue Bonds (Series 2018B) FRNs, 4.860% (1-month USLIBOR x 0.70 +1.040%), Mandatory Tender 8/15/2024 | 4,000,073 |
4,900,000 | Pennsylvania Economic Development Financing Authority (Waste Management, Inc.), Solid Waste Disposal Revenue Bonds (Series 2017A), 0.580%, Mandatory Tender 8/1/2024 | 4,799,764 | |
9,000,000 | 1 | Pennsylvania Economic Development Financing Authority (Waste Management, Inc.), Solid Waste Disposal Revenue Bonds (Series 2021A) FRNs, 4.270% (SIFMA 7-day +0.400%), Mandatory Tender 6/3/2024 | 8,959,941 |
6,750,000 | 1 | Southcentral PA, General Authority (Wellspan Health Obligated Group), Revenue Bonds (Series 2019A) FRNs, 4.470% (SIFMA 7-day +0.600%), Mandatory Tender 6/1/2024 | 6,739,260 |
TOTAL | 59,504,855 | ||
South Carolina—2.2% | |||
25,000,000 | 1 | Patriots Energy Group Financing Agency, Gas Supply Revenue Bonds (Series 2018B) FRNs, (United States Treasury PRF 2/1/2024@100), 4.516% (1-month USLIBOR x 0.67 +0.860%), Mandatory Tender 2/1/2024 | 25,001,972 |
Tennessee—2.5% | |||
3,000,000 | Johnson City, TN Health & Education Facilities Board (Roan Hill, LP), Tapestry at Roan Hill COL Multifamily Housing Bonds (Series 2023), (United States Treasury GTD), 3.600%, Mandatory Tender 12/1/2026 | 3,014,303 | |
3,500,000 | Knoxville, TN Community Development Corp. (Austin Homes 1B), (Series 2021), 4.250%, 10/1/2024 | 3,516,344 | |
5,000,000 | Knoxville, TN Community Development Corp. (DGA Grosvenor Square LP),COL Multifamily Housing Bonds (Series 2022), (United States Treasury GTD), 4.000%, Mandatory Tender 6/1/2026 | 5,057,211 | |
1,750,000 | Knoxville, TN Community Development Corp. (DGA Holston LP), Willow Place COL Multifamily Housing Bonds (Series 2022), (United States Treasury GTD), 3.750%, Mandatory Tender 6/1/2026 | 1,760,801 | |
700,000 | Knoxville, TN Community Development Corp. (DGA Holston LP), Willow Place COL Multifamily Housing Bonds (Series 2022), (United States Treasury GTD), 3.750%, Mandatory Tender 6/1/2026 | 704,482 | |
4,500,000 | Memphis, TN Health, Educational and Housing Facility Board (APP Greenbriar Partners, LLLP), COL Multifamily Housing Bonds (Series 2023), (United States Treasury GTD), 3.550%, Mandatory Tender 6/1/2027 | 4,506,312 | |
3,000,000 | Metropolitan Government of Nashville & Davidson County, TN Health & Educational Facilities Board (301 Ben Allen LP), Multifamily Housing Revenue Bonds (Series 2022B), (United States Treasury COL), 3.850%, Mandatory Tender 2/1/2026 | 3,024,503 |
5
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Tennessee—continued | |||
$ 7,200,000 | Tennergy Corp., TN Gas Revenue, Gas Supply Revenue Bonds (Series 2019A), (Royal Bank of Canada GTD), 5.000%, Mandatory Tender 10/1/2024 | $ 7,262,603 | |
TOTAL | 28,846,559 | ||
Texas—8.7% | |||
3,400,000 | Austin, TX Airport System, Revenue Refunding Bonds (Series 2019), 5.000%, 11/15/2024 | 3,435,763 | |
4,000,000 | Clear Creek, TX Independent School District, Variable Rate UT GO School Building Bonds (Series 2013B), (Texas Permanent School Fund Guarantee Program GTD), 0.280%, Mandatory Tender 8/15/2024 | 3,922,750 | |
3,500,000 | Denton County, TX HFA (THF Pathway on Woodrow, LP), Multifamily Housing Revenue Bonds (Series 2022), (United States Treasury COL), 5.000%, Mandatory Tender 2/1/2025 | 3,551,588 | |
1,760,000 | Eanes, TX Independent School District, Variable Rate UT School Building Bonds (Series 2019B), (Texas Permanent School Fund Guarantee Program GTD), 1.750%, Mandatory Tender 8/1/2025 | 1,725,700 | |
2,705,000 | Eanes, TX Independent School District, Variable Rate UT School Building Bonds (Series 2019B), (United States Treasury PRF 8/1/2024@100), 1.750%, Mandatory Tender 8/1/2024 | 2,684,102 | |
3,840,000 | Fort Bend, TX Independent School District, Variable Rate UT School Building and Refunding Bonds (Series 2020B), (Texas Permanent School Fund Guarantee Program GTD), 0.875%, Mandatory Tender 8/1/2025 | 3,672,160 | |
5,000,000 | 1 | Harris County, TX Cultural Education Facilities Finance Corp. (Baylor College of Medicine), Medical Facilities Mortgage Revenue Refunding Bonds (Series 2019A) FRNs, 4.447% (SOFR x 0.70 +0.730%), Mandatory Tender 7/1/2024 | 4,998,173 |
5,000,000 | 1 | Harris County, TX Cultural Education Facilities Finance Corp. (Memorial Hermann Health System), Hospital Revenue Bonds (Series 2019C-2) FRNs, 3.950% (SIFMA 7-day +0.570%), Mandatory Tender 12/4/2024 | 4,998,284 |
2,750,000 | 1 | Harris County, TX Cultural Education Facilities Finance Corp. (Memorial Hermann Health System), Hospital Revenue Bonds (Series 2022C) FRNs, 4.720% (SIFMA 7-day +0.850%), Mandatory Tender 12/1/2026 | 2,741,038 |
4,000,000 | Harris County, TX Cultural Education Facilities Finance Corp. (Texas Medical Center), Revenue Bonds (Series 2020A), 0.900%, Mandatory Tender 5/15/2025 | 3,838,456 | |
2,450,000 | Houston, TX Housing Finance Corp. (Temenos Place Apartments), (Series 2021), 4.080%, Mandatory Tender 2/1/2024 | 2,450,273 | |
850,000 | Houston, TX, Public Improvement and Refunding Bonds (Series 2023), 5.000%, 3/1/2025 | 870,060 | |
1,000,000 | Houston, TX, Public Improvement and Refunding Bonds (Series 2023), 5.000%, 3/1/2026 | 1,049,576 | |
925,000 | Houston, TX, Public Improvement and Refunding Bonds (Series 2023), 5.000%, 3/1/2028 | 1,018,868 | |
5,750,000 | Mission, TX Economic Development Corp. (Waste Management, Inc.), (Series 2023A), (Waste Management Holdings, Inc. GTD), 4.250%, Mandatory Tender 6/3/2024 | 5,745,723 | |
7,500,000 | North Texas Tollway Authority, First Tier Revenue Refunding Bonds (Series 2023A), 5.000%, 1/1/2026 | 7,842,748 | |
14,985,000 | Ponder, TX Independent School District, Variable Rate UT School Building Bonds (Series 2021), (Texas Permanent School Fund Guarantee Program GTD), 0.750%, Mandatory Tender 8/15/2024 | 14,738,155 | |
3,370,000 | 1 | San Antonio, TX Electric & Gas System, Junior Lien Revenue Refunding Bonds (Series 2022) FRNs, 4.740% (SIFMA 7-day +0.870%), Mandatory Tender 12/1/2025 | 3,364,085 |
2,500,000 | Texas Municipal Gas Acquisition & Supply Corp. III, Gas Supply Revenue Refunding Bonds (Series 2021), (Macquarie Group Ltd. GTD), 5.000%, 12/15/2026 | 2,581,122 | |
2,126,000 | Texas State Affordable Housing Corp. (Eden Court Senior Housing LP), (Series 2023), (United States Treasury GTD), 5.000%, Mandatory Tender 4/1/2026 | 2,198,140 | |
11,000,000 | Texas State Department of Housing & Community Affairs (THF Park at Kirkstall Apartments, LP), Multifamily Housing Revenue Bonds (Series 2021), 0.650%, Mandatory Tender 12/1/2024 | 10,591,835 | |
4,009,000 | The Texas Home Collaborative (1518 Apartments Ltd), Multifamily Housing Revenue Bonds (Series 2023), 5.000%, Mandatory Tender 10/1/2026 | 4,171,717 | |
8,000,000 | Trinity River, TX Public Facilities Authority (Cowan Place Apartments), (Series 2021), (United States Treasury COL), 4.400%, Mandatory Tender 4/1/2024 | 8,005,542 | |
TOTAL | 100,195,858 | ||
Virginia—3.3% | |||
1,175,000 | Harrisonburg, VA Redevelopment & Housing Authority (John Early Apartments), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury GTD), 4.000%, Mandatory Tender 12/1/2025 | 1,185,980 | |
1,650,000 | Harrisonburg, VA Redevelopment & Housing Authority (Wesley Apartments), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury GTD), 4.000%, Mandatory Tender 12/1/2026 | 1,674,324 | |
5,500,000 | Norfolk, VA Redevelopment and Housing Authority (Standard Braywood Manor Venture LP), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury COL), 5.000%, Mandatory Tender 5/1/2026 | 5,677,091 | |
3,720,000 | Northampton County and Towns, VA EDA (Myrtle Landing Renewal LLC), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury COL), 4.500%, Mandatory Tender 4/1/2025 | 3,757,109 | |
6,500,000 | Southampton County, VA IDA (PRTI-Virginia One, LLC), Environmental Improvement Revenue Bonds (Series 2023), (United States Treasury COL), 4.875%, Mandatory Tender 12/12/2024 | 6,516,088 | |
2,000,000 | Virginia Beach, VA Development Authority (Westminster-Canterbury on Chesapeake Bay), Residential Care Facility Revenue Bonds TEMPS-50 (Series 2023B-3), 5.375%, 9/1/2029 | 2,051,372 |
6
Principal Amount | Value | ||
MUNICIPAL BONDS—continued | |||
Virginia—continued | |||
$ 5,500,000 | Virginia Peninsula Port Authority (Dominion Terminal Associates), Coal Terminal Revenue Refunding Bonds (Series 2003), 3.800%, Mandatory Tender 10/1/2024 | $ 5,486,475 | |
6,500,000 | Virginia Small Business Financing Authority (Pure Salmon Virginia LLC), (Series 2022), (United States Treasury COL), 5.000%, Mandatory Tender 11/15/2024 | 6,520,648 | |
5,000,000 | Wise County, VA IDA (Virginia Electric & Power Co.), Solid Waste and Sewage Disposal Revenue Bonds (Series 2009A), 0.750%, Mandatory Tender 9/2/2025 | 4,654,416 | |
TOTAL | 37,523,503 | ||
Washington—2.2% | |||
4,000,000 | King County, WA Housing Authority, Affordable Housing Revenue Bonds Kirkland Heights Project (Series 2023A-1), 5.000%, 1/1/2028 | 4,140,439 | |
5,000,000 | 1 | King County, WA Sewer System, Junior Lien Revenue Bonds (Series 2021A) FRNs, 4.100% (SIFMA 7-day +0.230%), Mandatory Tender 1/1/2027 | 4,892,186 |
9,250,000 | 1 | Seattle, WA (Seattle, WA Municipal Light & Power), Refunding Revenue Bonds (Series 2021B) FRNs, 4.120% (SIFMA 7-day +0.250%), Mandatory Tender 11/1/2026 | 8,997,842 |
2,500,000 | Washington State Health Care Facilities Authority (CommonSpirit Health), Revenue Bonds (Series 2019B-1), 5.000%, Mandatory Tender 8/1/2024 | 2,502,670 | |
4,801,000 | Washington State Housing Finance Commission (Ardea TWG, LLLP), Ardea at Totem Lake Apartments Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury GTD), 5.000%, Mandatory Tender 2/1/2027 | 4,984,951 | |
TOTAL | 25,518,088 | ||
West Virginia—0.5% | |||
5,500,000 | West Virginia EDA Solid Waste Disposal Facilities (Appalachian Power Co.), Revenue Bonds (Series 2011A), 1.000%, Mandatory Tender 9/1/2025 | 5,150,274 | |
Wisconsin—1.1% | |||
7,500,000 | Public Finance Authority (Duke Energy Progress LLC), PCR Refunding Bonds (Series 2022A-1), 3.300%, Mandatory Tender 10/1/2026 | 7,505,309 | |
4,500,000 | Wisconsin Health & Educational Facilities Authority (Advocate Aurora Health), Revenue Bonds (Series 2018B-2), 5.000%, Mandatory Tender 6/24/2026 | 4,694,700 | |
TOTAL | 12,200,009 | ||
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $879,031,486) | 873,985,432 | ||
1 | SHORT-TERM MUNICIPALS—23.4% | ||
California—3.8% | |||
16,775,000 | Los Angeles, CA Multifamily Housing Revenue Bonds (CORE Related/ GALA Rentals, LP), SPEARs 3a7 (Series DBE-8081) Weekly VRDNs, (Deutsche Bank AG LIQ)/(Deutsche Bank AG LOC), 3.780%, 1/4/2024 | 16,775,000 | |
17,300,000 | Nuveen California AMT-Free Quality Municipal Income Fund, (Series A) MuniFund Preferred Shares Weekly VRDPs, 4.320%, 1/1/2024 | 17,300,000 | |
10,000,000 | Nuveen California Quality Municipal Income Fund, RIB Floater Trust (Series 2022-FR-RI-005) (Series 2 Preferred Shares) VRENs, (Barclays Bank plc LIQ)/(Barclays Bank plc LOC), 4.270%, 1/4/2024 | 10,000,000 | |
TOTAL | 44,075,000 | ||
Florida—0.1% | |||
1,700,000 | Miami-Dade County, FL HFA (Cordoba FL TC, LP), Mizuho 3a-7 (2021-MIZ9072) VRENs, (Mizuho Bank Ltd. GTD)/(Mizuho Bank Ltd. LIQ), 4.270%, 1/4/2024 | 1,700,000 | |
Georgia—0.1% | |||
950,000 | Burke County, GA Development Authority (Georgia Power Co.), (Series 2008) Daily VRDNs, 4.500%, 1/1/2024 | 950,000 | |
Indiana—1.0% | |||
11,600,000 | Indiana State Finance Authority Environmental (ArcelorMittal SA), (Series 2006) Weekly VRDNs, (Banco Bilbao Vizcaya Argentaria SA LOC), 4.850%, 1/3/2024 | 11,600,000 | |
Kentucky—0.9% | |||
800,000 | Meade County, KY Industrial Building Revenue Authority (Nucor Corp.), (Series 2020B-1) Daily VRDNs, 5.000%, 1/1/2024 | 800,000 | |
5,695,000 | Meade County, KY Industrial Building Revenue Authority (Nucor Corp.), (Series 2021A-1) Daily VRDNs, 5.050%, 1/1/2024 | 5,695,000 | |
4,150,000 | Meade County, KY Industrial Building Revenue Authority (Nucor Corp.), (Series 2021B-1) Daily VRDNs, 4.850%, 1/1/2024 | 4,150,000 | |
TOTAL | 10,645,000 | ||
Multi State—6.1% | |||
21,400,000 | Invesco Municipal Opportunity Trust, PUTTERs 3a-7 (VMTP 5029) Daily VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 4.850%, 1/1/2024 | 21,400,000 | |
16,000,000 | Nuveen AMT-Free Municipal Credit Income Fund, (Series B) MuniFund Preferred Shares Weekly VRDPs, 4.320%, 1/1/2024 | 16,000,000 |
7
Principal Amount | Value | ||
1 | SHORT-TERM MUNICIPALS—continued | ||
Multi State—continued | |||
$13,300,000 | Nuveen AMT-Free Municipal Credit Income Fund, (Series C) MuniFund Preferred Shares Weekly VRDPs, 4.320%, 1/1/2024 | $ 13,300,000 | |
19,275,000 | Nuveen AMT-Free Quality Municipal Income Fund, (Series D) MuniFund Preferred Shares Weekly VRDPs, 4.320%, 1/1/2024 | 19,275,000 | |
TOTAL | 69,975,000 | ||
New York—1.0% | |||
1,300,000 | New York City, NY, (Series B-3) Weekly VRENs, 4.100%, 1/1/2024 | 1,300,000 | |
10,000,000 | New York State HFA (42nd and 10th Street Associates LLC), 3a-7 High Grade Trust (Series 2022-007) VRENs, (Barclays Bank plc LIQ)/(Barclays Bank plc LOC), 4.320%, 1/4/2024 | 10,000,000 | |
TOTAL | 11,300,000 | ||
Ohio—1.1% | |||
8,500,000 | Ohio State Hospital Revenue (University Hospitals Health System, Inc.), (Series B) VRENs, 4.250%, 1/1/2024 | 8,500,000 | |
4,000,000 | Ohio State Hospital Revenue (University Hospitals Health System, Inc.), (Series C) VRENs, 4.300%, 1/1/2024 | 4,000,000 | |
500,000 | Ohio State Hospital Revenue (University Hospitals Health System, Inc.), Hospital Revenue Bonds (Series 2014B) VRENs, 4.200%, 1/4/2024 | 500,000 | |
TOTAL | 13,000,000 | ||
Oklahoma—0.8% | |||
8,950,000 | Oklahoma Development Finance Authority (INTEGRIS Obligated Group), (Series 2020B) Weekly VRENs, 4.430%, 1/1/2024 | 8,950,000 | |
Pennsylvania—0.6% | |||
6,645,000 | Central Bradford Progress Authority, PA (Guthrie Healthcare System, PA), (Series 2021D) Weekly VRENs, 4.410%, 1/4/2024 | 6,645,000 | |
Texas—6.6% | |||
39,500,000 | Port of Port Arthur Navigation District of Jefferson County, TX (Motiva Enterprises LLC), (Series 2002) Weekly VRDNs, 4.930%, 1/3/2024 | 39,500,000 | |
100,000 | Port of Port Arthur Navigation District of Jefferson County, TX (Motiva Enterprises LLC), (Series 2010B) Daily VRDNs, 4.650%, 1/1/2024 | 100,000 | |
1,650,000 | Port of Port Arthur Navigation District of Jefferson County, TX (Motiva Enterprises LLC), (Series 2010C) Daily VRDNs, 4.650%, 1/1/2024 | 1,650,000 | |
24,100,000 | Port of Port Arthur Navigation District of Jefferson County, TX (Motiva Enterprises LLC), (Series 2010D) Weekly VRDNs, 4.850%, 1/3/2024 | 24,100,000 | |
10,175,000 | Port of Port Arthur Navigation District of Jefferson County, TX (Motiva Enterprises LLC), (Series 2010E) Weekly VRDNs, 4.880%, 1/3/2024 | 10,175,000 | |
TOTAL | 75,525,000 | ||
Wisconsin—1.3% | |||
15,000,000 | Wisconsin Health & Educational Facilities Authority (Marshfield Clinic), (Series 2022A) Weekly VRENs, 5.270%, 1/4/2024 | 15,000,000 | |
TOTAL SHORT-TERM MUNICIPALS (IDENTIFIED COST $269,365,000) | 269,365,000 | ||
TOTAL INVESTMENT IN SECURITIES—99.3% (IDENTIFIED COST $1,148,396,486) | 1,143,350,432 | ||
OTHER ASSETS AND LIABILITIES - NET—0.7%3 | 7,638,615 | ||
TOTAL NET ASSETS—100% | $1,150,989,047 |
Securities that are subject to the federal alternative minimum tax (AMT) represent 17.7% of the Fund’s portfolio as calculated based upon total market value.
1 | Current rate and current maturity or next reset date shown for floating rate notes and variable rate notes/demand instruments. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
2 | Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or availing of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At December 31, 2023, these restricted securities amounted to $1,708,403, which represented 0.1% of total net assets. |
Additional information on restricted securities held at December 31, 2023, is as follows:
Security | Acquisition Date | Acquisition Cost | Value |
California Public Finance Authority (Kendal at Sonoma), Enso Village TEMPS-50 Senior Living Revenue Refunding Bonds (Series B-3), 2.125%, 11/15/2027 | 5/27/2021 | $1,710,000 | $1,708,403 |
3 | Assets, other than investments in securities, less liabilities. |
8
Note: The categories of investments are shown as a percentage of total net assets at December 31, 2023.
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
■ Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by Federated Investment Management Company (the “Adviser”).
■ Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.
■ Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and ask quotations.
■ Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser.
■ For securities that are fair valued in accordance with procedures established by and under the general supervision of the Adviser, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.
If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Adviser’s valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion of the Adviser’s valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.
Fair Valuationand Significant Events Procedures
Pursuant to Rule 2a-5 under the Investment Company Act of 1940, the Fund’s Board of Directors (the “Directors”) has designated the Adviser as the Fund’s valuation designee to perform any fair value determinations for securities and other assets held by the Fund. The Adviser is subject to the Directors’ oversight and certain reporting and other requirements intended to provide the Directors the information needed to oversee the Adviser’s fair value determinations.
The Adviser, acting through its Valuation Committee, is responsible for determining the fair value of investments for which market quotations are not readily available. The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser’s affiliated companies and determines fair value and oversees the calculation of the NAV. The Valuation Committee is also authorized to use pricing services to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Adviser. The Directors periodically review the fair valuations made by the Valuation Committee. The Directors have also approved the Adviser’s fair valuation and significant events procedures as part of the Fund’s compliance program and will review any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and ask for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Adviser.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
9
As of December 31, 2023, all investments of the Fund utilized Level 2 inputs in valuing the Fund’s assets carried at fair value.
The following acronym(s) are used throughout this portfolio: | ||
AMT | —Alternative Minimum Tax | |
BANs | —Bond Anticipation Notes | |
COL | —Collateralized | |
EDA | —Economic Development Authority | |
FRNs | —Floating Rate Notes | |
GO | —General Obligation | |
GTD | —Guaranteed | |
HFA | —Housing Finance Authority | |
IDA | —Industrial Development Authority | |
IDB | —Industrial Development Bond | |
LIBOR | —London Interbank Offered Rate | |
LIQ | —Liquidity Agreement | |
LOC | —Letter of Credit | |
LP | —Limited Partnership | |
PCFA | —Pollution Control Financing Authority | |
PCR | —Pollution Control Revenue | |
PCRB | —Pollution Control Revenue Bond(s) | |
PRF | —Pre-refunded | |
PUTTERs | —Puttable Tax-Exempt Receipts | |
SIFMA | —Securities Industry and Financial Markets Association | |
SOFR | —Secured Overnight Financing Rate | |
SPEARs | —Short Puttable Exempt Adjustable Receipts | |
TEMPS | —Tax Exempt Mandatory Paydown Securities | |
UT | —Unlimited Tax | |
VMTP | —Variable Municipal Term Preferred | |
VRDNs | —Variable Rate Demand Notes | |
VRDPs | —Variable Rate Demand Preferreds | |
VRENs | —Variable Rate Extendible Notes |
10