United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-6447
(Investment Company Act File Number)
Federated Fixed Income Securities, Inc.
______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
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: 11/30/16
Date of Reporting Period: Six months ended 05/31/16
Item 1. Reports to Stockholders
Share Class | Ticker |
A | STIAX |
B | SINBX |
C | SINCX |
F | STFSX |
Institutional | STISX |
Security Type | Percentage of Total Net Assets2 |
Corporate Debt Securities | 65.8% |
Mortgage-Backed Securities3 | 9.2% |
Foreign Government Securities | 9.2% |
Collateralized Mortgage Obligations | 2.9% |
Commercial Mortgage-Backed Securities | 2.2% |
Asset-Backed Securities | 1.0% |
U.S. Treasury Security | 0.3% |
Derivative Contracts4,5 | 0.0% |
Other Security Types6 | 6.6% |
Cash Equivalents7 | 3.8% |
Other Assets and Liabilities—Net8 | (1.0)% |
TOTAL | 100.0% |
1 | See the Fund's Prospectus and Statement of Additional Information for a description of these security types. |
2 | As of the date specified above, the Fund owned shares of one or more affiliated investment companies. For purposes of this table, the affiliated investment company (other than an affiliated money market mutual fund) is not treated as a single portfolio security, but rather the Fund is treated as owning a pro rata portion of each security and each other asset and liability owned by the affiliated investment company. Accordingly, the percentages of total net assets shown in the table will differ from those presented on the Portfolio of Investments. |
3 | For purposes of this table, Mortgage-Backed Securities include mortgage-backed securities guaranteed by Government Sponsored Entities and adjustable rate mortgage-backed securities. |
4 | Represents less than 0.1%. |
5 | Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund's performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract's significance to the portfolio. More complete information regarding the Fund's direct investments in derivative contracts, including unrealized appreciation (depreciation), value, and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report. |
6 | Other Security Types consist of common stock, preferred stock and purchased options. |
7 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. |
8 | Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities. |
Principal Amount, Foreign Par Amount or Shares | Value | ||
CORPORATE BONDS—4.4% | |||
Basic Industry - Chemicals—0.3% | |||
$132,000 | Albemarle Corp., 4.150%, 12/01/2024 | $134,605 | |
135,000 | Albemarle Corp., Sr. Unsecd. Note, 5.450%, 12/01/2044 | 134,610 | |
1,250,000 | 1 | Reliance Industries Ltd., Bond, Series 144A, 8.250%, 01/15/2027 | 1,635,153 |
160,000 | Valspar Corp., Sr. Unsecd. Note, 3.300%, 02/01/2025 | 158,145 | |
250,000 | Valspar Corp., Sr. Unsecd. Note, 4.400%, 02/01/2045 | 233,281 | |
TOTAL | 2,295,794 | ||
Basic Industry - Metals & Mining—0.1% | |||
400,000 | Alcoa, Inc., Sr. Unsecd. Note, 5.400%, 04/15/2021 | 415,500 | |
200,000 | Southern Copper Corp., Note, 6.750%, 04/16/2040 | 194,452 | |
175,000 | Worthington Industries, Inc., Sr. Unsecd. Note, 4.550%, 04/15/2026 | 178,163 | |
120,000 | Worthington Industries, Inc., Sr. Unsecd. Note, 6.500%, 04/15/2020 | 131,555 | |
TOTAL | 919,670 | ||
Basic Industry - Paper—0.0% | |||
250,000 | 3,4,5 | Pope & Talbot, Inc., 8.375%, 12/01/2099 | 0 |
112,000 | Westvaco Corp., Sr. Deb., 7.500%, 06/15/2027 | 118,495 | |
TOTAL | 118,495 | ||
Capital Goods - Aerospace & Defense—0.1% | |||
400,000 | Lockheed Martin Corp., Sr. Unsecd. Note, 2.900%, 03/01/2025 | 405,740 | |
200,000 | Textron, Inc., Sr. Unsecd. Note, 4.300%, 03/01/2024 | 210,888 | |
TOTAL | 616,628 | ||
Capital Goods - Building Materials—0.0% | |||
100,000 | Masco Corp., Sr. Unsecd. Note, 4.375%, 04/01/2026 | 104,000 | |
Communications - Cable & Satellite—0.0% | |||
200,000 | NBC Universal Media LLC, Sr. Unsecd. Note, 2.875%, 01/15/2023 | 205,371 | |
Communications - Media & Entertainment—0.1% | |||
300,000 | 21st Century Fox America, 3.000%, 09/15/2022 | 308,185 | |
200,000 | Discovery Communications, Sr. Unsecd. Note, 4.900%, 03/11/2026 | 211,431 | |
200,000 | Grupo Televisa S.A., Sr. Unsecd. Note, 5.000%, 05/13/2045 | 185,702 | |
200,000 | Viacom, Inc., Sr. Unsecd. Note, 4.250%, 09/01/2023 | 204,648 | |
TOTAL | 909,966 | ||
Communications - Telecom Wireless—0.1% | |||
250,000 | American Tower Corp., Sr. Unsecd. Note, 5.000%, 02/15/2024 | 276,511 |
Principal Amount, Foreign Par Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Communications - Telecom Wireless—continued | |||
$350,000 | Crown Castle International Corp., Sr. Unsecd. Note, 4.450%, 02/15/2026 | $373,016 | |
TOTAL | 649,527 | ||
Communications - Telecom Wirelines—0.2% | |||
250,000 | AT&T, Inc., Sr. Unsecd. Note, 4.450%, 04/01/2024 | 267,952 | |
250,000 | AT&T, Inc., Sr. Unsecd. Note, 5.150%, 03/15/2042 | 261,022 | |
200,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 5.150%, 09/15/2023 | 230,006 | |
400,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 6.550%, 09/15/2043 | 525,047 | |
TOTAL | 1,284,027 | ||
Consumer Cyclical - Automotive—0.1% | |||
400,000 | Ford Motor Co., Sr. Unsecd. Note, 4.750%, 01/15/2043 | 409,786 | |
550,000 | General Motors Co., Sr. Unsecd. Note, 5.200%, 04/01/2045 | 536,201 | |
TOTAL | 945,987 | ||
Consumer Cyclical - Retailers—0.1% | |||
300,000 | Advance Auto Parts, Inc., 4.500%, 12/01/2023 | 313,855 | |
300,000 | CVS Caremark Corp., Sr. Unsecd. Note, 4.000%, 12/05/2023 | 325,439 | |
TOTAL | 639,294 | ||
Consumer Non-Cyclical - Food/Beverage—0.1% | |||
300,000 | 1,2 | Grupo Bimbo SAB de CV, Sr. Unsecd. Note, Series 144A, 3.875%, 06/27/2024 | 305,860 |
150,000 | 1,2 | Kraft Heinz Foods Co., Sr. Unsecd. Note, 3.000%, 06/01/2026 | 148,189 |
140,000 | 1,2 | Kraft Heinz Foods Co., Sr. Unsecd. Note, Series 144A, 4.375%, 06/01/2046 | 140,826 |
250,000 | PepsiCo, Inc., 2.750%, 04/30/2025 | 254,458 | |
300,000 | Tyson Foods, Inc., Sr. Unsecd. Note, 4.500%, 06/15/2022 | 330,019 | |
TOTAL | 1,179,352 | ||
Consumer Non-Cyclical - Health Care—0.1% | |||
400,000 | Agilent Technologies, Inc., Sr. Unsecd. Note, 3.875%, 07/15/2023 | 415,740 | |
325,000 | Zimmer Holdings, Inc., Sr. Unsecd. Note, 3.550%, 04/01/2025 | 330,146 | |
TOTAL | 745,886 | ||
Consumer Non-Cyclical - Products—0.0% | |||
250,000 | Newell Rubbermaid, Inc., Sr. Unsecd. Note, 4.200%, 04/01/2026 | 264,482 | |
Consumer Non-Cyclical - Tobacco—0.1% | |||
400,000 | Reynolds American, Inc., Sr. Unsecd. Note, 7.000%, 08/04/2041 | 478,634 | |
Energy - Independent—0.1% | |||
320,000 | Anadarko Petroleum Corp., Sr. Unsecd. Note, 5.550%, 03/15/2026 | 341,723 |
Principal Amount, Foreign Par Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Energy - Independent—continued | |||
$200,000 | Canadian Natural Resources Ltd., Sr. Unsecd. Note, 3.800%, 04/15/2024 | $184,340 | |
200,000 | EOG Resources, Inc., Sr. Unsecd. Note, 4.150%, 01/15/2026 | 213,311 | |
200,000 | Hess Corp., Sr. Unsecd. Note, 3.500%, 07/15/2024 | 191,232 | |
200,000 | Marathon Oil Corp., Sr. Unsecd. Note, 3.850%, 06/01/2025 | 175,401 | |
TOTAL | 1,106,007 | ||
Energy - Integrated—0.2% | |||
200,000 | BP Capital Markets PLC, Company Guarantee, 3.561%, 11/01/2021 | 211,239 | |
300,000 | Husky Energy, Inc., Sr. Unsecd. Note, 3.950%, 04/15/2022 | 303,306 | |
400,000 | Petrobras International Finance Co., Sr. Unsecd. Note, 3.500%, 02/06/2017 | 400,400 | |
400,000 | Petroleos Mexicanos, 6.500%, 06/02/2041 | 380,000 | |
200,000 | Petroleos Mexicanos, Company Guarantee, 5.500%, 01/21/2021 | 208,000 | |
90,000 | Shell International Finance, Sr. Unsecd. Note, 2.875%, 05/10/2026 | 89,056 | |
70,000 | Shell International Finance, Sr. Unsecd. Note, Series 30YR, 4.000%, 05/10/2046 | 68,190 | |
TOTAL | 1,660,191 | ||
Energy - Midstream—0.2% | |||
300,000 | Energy Transfer Partners LP, Sr. Unsecd. Note, 4.900%, 02/01/2024 | 286,737 | |
250,000 | Enterprise Products Operating LLC, 3.900%, 02/15/2024 | 258,777 | |
200,000 | Kinder Morgan Energy Partners LP, Sr. Unsecd. Note, 5.300%, 09/15/2020 | 209,944 | |
200,000 | Kinder Morgan Energy Partners LP, Sr. Unsecd. Note, 6.375%, 03/01/2041 | 195,882 | |
100,000 | Williams Partners LP, Sr. Unsecd. Note, 3.900%, 01/15/2025 | 86,480 | |
300,000 | Williams Partners LP, Sr. Unsecd. Note, 4.125%, 11/15/2020 | 281,515 | |
TOTAL | 1,319,335 | ||
Energy - Oil Field Services—0.1% | |||
400,000 | Nabors Industries, Inc., Company Guarantee, 5.000%, 09/15/2020 | 365,612 | |
200,000 | 1,2 | Schlumberger Holdings Corp., Sr. Unsecd. Note, Series 144A, 4.000%, 12/21/2025 | 208,681 |
400,000 | Weatherford International Ltd., 5.125%, 09/15/2020 | 326,000 | |
TOTAL | 900,293 | ||
Energy - Refining—0.1% | |||
200,000 | Marathon Petroleum Corp., Sr. Unsecd. Note, 3.625%, 09/15/2024 | 188,765 | |
400,000 | Valero Energy Corp., Sr. Unsecd. Note, 6.625%, 06/15/2037 | 417,995 | |
TOTAL | 606,760 |
Principal Amount, Foreign Par Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - Banking—0.8% | |||
$275,000 | American Express Credit Corp., Sr. Unsecd. Note, Series MTN, 2.250%, 05/05/2021 | $275,021 | |
300,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 3.300%, 01/11/2023 | 305,704 | |
500,000 | Bank of America Corp., Sub. Note, Series MTN, 4.000%, 01/22/2025 | 501,872 | |
400,000 | Capital One Bank, Sr. Unsecd. Note, Series BKNT, 2.150%, 11/21/2018 | 400,979 | |
570,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.400%, 05/01/2026 | 574,254 | |
270,000 | Citizens Financial Group, Inc., Sub. Note, 4.300%, 12/03/2025 | 278,491 | |
400,000 | Compass Bank, Birmingham, Sub. Note, Series BKNT, 3.875%, 04/10/2025 | 377,382 | |
300,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 5.750%, 01/24/2022 | 344,251 | |
300,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 6.125%, 02/15/2033 | 369,467 | |
200,000 | HSBC Holdings PLC, Sr. Unsecd. Note, 4.000%, 03/30/2022 | 210,339 | |
1,100,000 | Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 5.500%, 07/24/2020 | 1,229,617 | |
729,175 | 1,5 | Regional Diversified Funding, Series 144A, 9.250%, 03/15/2030 | 353,766 |
250,000 | Regions Financial Corp., Sr. Unsecd. Note, 3.200%, 02/08/2021 | 252,912 | |
200,000 | SunTrust Bank, Sub., 3.300%, 05/15/2026 | 199,518 | |
155,000 | SunTrust Banks, Inc., Sr. Unsecd. Note, 2.500%, 05/01/2019 | 157,321 | |
400,000 | Union Bank, N.A., Sr. Unsecd. Note, 2.625%, 09/26/2018 | 405,729 | |
TOTAL | 6,236,623 | ||
Financial Institution - Broker/Asset Mgr/Exchange—0.1% | |||
200,000 | Jefferies Group LLC, Sr. Unsecd. Note, 5.125%, 01/20/2023 | 207,441 | |
490,000 | Stifel Financial Corp., Sr. Unsecd. Note, 3.500%, 12/01/2020 | 489,067 | |
TOTAL | 696,508 | ||
Financial Institution - Finance Companies—0.1% | |||
170,000 | AerCap Ireland Capital Ltd, Sr. Unsecd. Note, 3.950%, 02/01/2022 | 169,788 | |
500,000 | Susa Partnership LP, Sr. Unsecd. Note, 8.200%, 06/01/2017 | 532,149 | |
TOTAL | 701,937 | ||
Financial Institution - Insurance - Life—0.4% | |||
400,000 | Aflac, Inc., Sr. Unsecd. Note, 3.625%, 06/15/2023 | 423,278 | |
400,000 | American International Group, Inc., Sr. Unsecd. Note, 4.125%, 02/15/2024 | 416,800 | |
300,000 | Lincoln National Corp., Sr. Unsecd. Note, 4.200%, 03/15/2022 | 318,835 | |
300,000 | 1,2 | Mass Mutual Global Funding II, Sr. Secd. Note, Series 144A, 3.600%, 04/09/2024 | 315,809 |
400,000 | MetLife, Inc., Sr. Unsecd. Note, 4.750%, 02/08/2021 | 444,392 | |
200,000 | 1,2 | Principal Life Global Funding II, Series 144A, 2.200%, 04/08/2020 | 200,339 |
Principal Amount, Foreign Par Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - Insurance - Life—continued | |||
$250,000 | Prudential Financial, Inc., Sr. Unsecd. Note, Series MTN, 4.600%, 05/15/2044 | $258,153 | |
80,000 | Prudential Financial, Inc., Sr. Unsecd. Note, Series MTN, 6.200%, 11/15/2040 | 95,563 | |
500,000 | 1 | Union Central Life Insurance Co., Note, Series 144A, 8.200%, 11/01/2026 | 614,280 |
TOTAL | 3,087,449 | ||
Financial Institution - Insurance - P&C—0.1% | |||
300,000 | CNA Financial Corp., Sr. Unsecd. Note, 5.750%, 08/15/2021 | 339,073 | |
400,000 | 1,2 | Liberty Mutual Group, Inc., Sr. Unsecd. Note, Series 144A, 4.250%, 06/15/2023 | 419,382 |
TOTAL | 758,455 | ||
Financial Institution - REIT - Healthcare—0.0% | |||
300,000 | Health Care REIT, Inc., Sr. Unsecd. Note, 4.125%, 04/01/2019 | 315,072 | |
Financial Institution - REIT - Other—0.1% | |||
635,000 | WP Carey, Inc., Sr. Unsecd. Note, 4.600%, 04/01/2024 | 642,030 | |
Technology—0.3% | |||
200,000 | Adobe Systems, Inc., Sr. Unsecd. Note, 3.250%, 02/01/2025 | 206,353 | |
100,000 | Apple, Inc., Sr. Unsecd. Note, 4.450%, 05/06/2044 | 106,339 | |
60,000 | 1,2 | Diamond 1 Finance Corp./Diamond 2 Finance Corp., Term Loan - 1st Lien, Series 144A, 4.420%, 06/15/2021 | 61,327 |
180,000 | 1,2 | Diamond 1 Finance Corp./Diamond 2 Finance Corp., Term Loan - 1st Lien, Series 144A, 6.020%, 06/15/2026 | 181,961 |
125,000 | Equifax, Inc., Sr. Unsecd. Note, 2.300%, 06/01/2021 | 124,729 | |
300,000 | Fidelity National Information Services, Inc., Sr. Unsecd. Note, 3.500%, 04/15/2023 | 303,853 | |
350,000 | Ingram Micro, Inc., Sr. Unsecd. Note, 4.950%, 12/15/2024 | 347,881 | |
565,000 | Microsoft Corp., Sr. Unsecd. Note, 4.000%, 02/12/2055 | 555,096 | |
600,000 | 1,2 | Molex Electronics Technologies LLC, Unsecd. Note, Series 144A, 3.900%, 04/15/2025 | 590,317 |
80,000 | Total System Services, Inc., Sr. Unsecd. Note, 4.800%, 04/01/2026 | 84,554 | |
TOTAL | 2,562,410 | ||
Transportation - Railroads—0.1% | |||
200,000 | Burlington Northern Santa Fe Corp., 3.050%, 09/01/2022 | 209,613 | |
430,000 | Union Pacific Corp., Sr. Unsecd. Note, 3.875%, 02/01/2055 | 419,460 | |
TOTAL | 629,073 |
Principal Amount, Foreign Par Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Utility - Electric—0.3% | |||
$400,000 | Cleveland Electric Illuminating Co., Sr. Unsecd. Note, 5.950%, 12/15/2036 | $429,597 | |
400,000 | 1,2 | Electricite de France SA, Jr. Sub. Note, Series 144A, 5.625%, 12/29/2049 | 379,000 |
300,000 | Exelon Generation Co. LLC, Sr. Unsecd. Note, 4.250%, 06/15/2022 | 315,483 | |
400,000 | NextEra Energy Capital Holdings, Inc., Sr. Unsecd. Note, 3.625%, 06/15/2023 | 413,556 | |
350,000 | Northeast Utilities, Sr. Unsecd. Note, Series H, 3.150%, 01/15/2025 | 358,624 | |
300,000 | PPL Capital Funding, Inc., Sr. Unsecd. Note, 4.200%, 06/15/2022 | 325,779 | |
250,000 | Southern Co., Sr. Unsecd. Note, 3.250%, 07/01/2026 | 252,248 | |
TOTAL | 2,474,287 | ||
TOTAL CORPORATE BONDS (IDENTIFIED COST $34,832,063) | 35,053,543 | ||
COMMERCIAL MORTGAGE-BACKED SECURITIES—0.6% | |||
Agency Commercial Mortgage-Backed Securities—0.6% | |||
1,225,000 | Federal Home Loan Mortgage Corp., 2.745%, 01/25/2026 | 1,261,195 | |
1,000,000 | Federal Home Loan Mortgage Corp., 2.995%, 12/25/2025 | 1,050,702 | |
2,000,000 | 1,2 | FREMF Mortgage Trust 2013-K25, Class B, 3.618%,11/25/2045 | 2,048,621 |
390,000 | 1,2 | FREMF Mortgage Trust 2015-K49, Class B, 3.720%, 10/25/2048 | 362,257 |
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $4,655,977) | 4,722,775 | ||
COLLATERALIZED MORTGAGE OBLIGATIONS—1.9% | |||
Commercial Mortgage—1.9% | |||
1,600,000 | Citigroup Commercial Mortgage Trust 2013-GC11, Class B, 3.732%, 04/10/2046 | 1,634,641 | |
1,000,000 | Commercial Mortgage Pass-Through Certificates 2012-LC4, Class B, 4.934%, 12/10/2044 | 1,099,074 | |
2,100,000 | Commercial Mortgage Trust 2013-LC6, Class AM, 3.282%, 01/10/2046 | 2,160,572 | |
2,000,000 | Commercial Mortgage Trust 2014-LC15, Class A2, 2.840%, 04/10/2047 | 2,053,697 | |
1,000,000 | Commercial Mortgage Trust 2015-DC1, Class AM, 3.724%, 02/10/2048 | 1,044,634 | |
2,500,000 | GS Mortgage Securities Corp. II 2012-GCJ7, Class AS, 4.085%, 05/10/2045 | 2,697,346 | |
1,500,000 | JPMBB Commercial Mortgage Securities Trust 2013-C15, Class AS, 3.532%, 10/15/2048 | 1,541,784 | |
900,000 | Morgan Stanley BAML Trust 2014-C15, Class A2, 2.979%, 04/15/2047 | 925,772 | |
1,000,000 | Morgan Stanley Capital I 2012-C4, Class AS, 3.773%, 03/15/2045 | 1,056,781 |
Principal Amount, Foreign Par Amount or Shares | Value | ||
COLLATERALIZED MORTGAGE OBLIGATIONS—continued | |||
Commercial Mortgage—continued | |||
$1,000,000 | WF-RBS Commercial Mortgage Trust 2012-C6, Class B, 4.697%, 04/15/2045 | $1,081,566 | |
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $14,942,601) | 15,295,867 | ||
COMMON STOCKS—6.6% | |||
Auto Components—0.3% | |||
78,576 | 3 | American Axle & Manufacturing Holdings, Inc. | 1,309,862 |
50,791 | Goodyear Tire & Rubber Co. | 1,420,624 | |
TOTAL | 2,730,486 | ||
Building Products—0.3% | |||
23,396 | 3 | Nortek, Inc. | 1,152,721 |
47,205 | 3 | U.S.G. Corp. | 1,362,336 |
TOTAL | 2,515,057 | ||
Communications Equipment—0.1% | |||
38,757 | 3 | CommScope Holdings Co., Inc. | 1,207,281 |
Containers & Packaging—1.1% | |||
40,589 | 3 | Berry Plastics Group, Inc. | 1,589,871 |
117,399 | Graphic Packaging Holding Co. | 1,573,147 | |
81,392 | 3 | Multi Packaging Solutions International Limited | 1,287,621 |
79,256 | 3 | Owens-Illinois, Inc. | 1,497,938 |
32,968 | Sealed Air Corp. | 1,531,034 | |
41,013 | WestRock Co. | 1,624,525 | |
TOTAL | 9,104,136 | ||
Electronic Equipment Instruments & Components—0.3% | |||
31,675 | CDW Corp. | 1,348,088 | |
21,456 | 3 | Zebra Technologies Co., Class A | 1,139,528 |
TOTAL | 2,487,616 | ||
Gas Utilities—0.2% | |||
39,966 | Suburban Propane Partners LP | 1,381,225 | |
Health Care Providers & Services—0.7% | |||
73,677 | 3 | Community Health Systems, Inc. | 990,219 |
57,939 | 3 | Envision Healthcare Holdings, Inc. | 1,437,467 |
29,520 | 3 | Team Health Holdings, Inc. | 1,416,074 |
47,615 | 3 | Tenet Healthcare Corp. | 1,377,978 |
TOTAL | 5,221,738 |
Principal Amount, Foreign Par Amount or Shares | Value | ||
COMMON STOCKS—continued | |||
Hotels Restaurants & Leisure—0.5% | |||
65,890 | Hilton Worldwide Holdings, Inc. | $1,369,194 | |
95,702 | 3 | La Quinta Holdings, Inc. | 1,136,940 |
99,856 | 3 | Penn National Gaming, Inc. | 1,564,743 |
TOTAL | 4,070,877 | ||
Household Products—0.2% | |||
12,210 | Spectrum Brands Holdings, Inc. | 1,423,320 | |
Leisure Products—0.0% | |||
123,638 | 3 | Performance Sports Group Ltd. | 398,817 |
Media—0.8% | |||
88,485 | Entercom Communication Corp. Class A | 1,123,759 | |
94,760 | 3 | Gray Television, Inc. | 1,120,063 |
20,685 | Nexstar Broadcasting Group, Inc., Class A | 1,100,856 | |
652,099 | 3 | Radio One, Inc., Class D | 1,767,188 |
127,273 | 3 | Townsquare Media, Inc., Class A | 1,123,821 |
TOTAL | 6,235,687 | ||
Oil Gas & Consumable Fuels—0.5% | |||
57,982 | Crestwood Equity Partners LP | 1,251,252 | |
88,700 | CVR Refining, LP | 901,192 | |
47,899 | Williams Partners LP | 1,528,936 | |
TOTAL | 3,681,380 | ||
Paper & Forest Products—0.2% | |||
20,839 | 3 | Clearwater Paper Corp. | 1,304,730 |
Semiconductors & Semiconductor Equipment—0.3% | |||
34,065 | 3 | Microsemi Corp. | 1,152,419 |
76,589 | 3 | Tower Semiconductor Ltd. | 1,023,229 |
TOTAL | 2,175,648 | ||
Specialty Retail—0.3% | |||
41,305 | 3 | Michaels Cos., Inc. | 1,210,650 |
90,717 | 3 | Party City Holdco, Inc. | 1,264,595 |
TOTAL | 2,475,245 | ||
Technology Hardware Storage & Peripherals—0.2% | |||
49,655 | 3 | NCR Corp. | 1,533,346 |
Textiles Apparel & Luxury Goods—0.2% | |||
14,617 | PVH Corp. | 1,371,075 |
Principal Amount, Foreign Par Amount or Shares | Value | ||
COMMON STOCKS—continued | |||
Food & Staples Retailing—0.1% | |||
45,579 | 3 | US Foods Holding Corp. | $1,139,019 |
Pharmaceuticals—0.1% | |||
7,975 | 3 | Mallinckrodt PLC | 505,296 |
Trading Companies & Distributors—0.2% | |||
41,496 | 3 | HD Supply Holdings, Inc. | 1,464,809 |
Chemicals—0.0% | |||
6,935 | 3 | Ingevity Corp. | 202,100 |
TOTAL COMMON STOCKS (IDENTIFIED COST $50,007,584) | 52,628,888 | ||
PREFERRED STOCK—0.0% | |||
Financial Institution - Broker/Asset Mgr/Exchange—0.0% | |||
40,000 | 3,4,5 | Lehman Brothers Holdings, Pfd., Series D, 5.670% (IDENTIFIED COST $3,400) | 400 |
PURCHASED PUT OPTION—0.0% | |||
7,278,768 | BNP Paribas SA GBP PUT/USD CALL (Put-Option) Strike Price: $1.4616; Expiration Date: 6/2/2016 (IDENTIFIED COST $84,610) | 69,330 | |
INVESTMENT COMPANIES—86.4%6 | |||
6,084,393 | Emerging Markets Fixed Income Core Fund | 218,598,622 | |
10,562,142 | Federated Mortgage Core Portfolio | 105,410,175 | |
3,448,124 | Federated Institutional Prime Value Obligations Fund, Institutional Shares, 0.42%7 | 3,448,124 | |
59,843,644 | High Yield Bond Portfolio | 364,447,794 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $684,610,101) | 691,904,715 | ||
TOTAL INVESTMENTS—99.9% (IDENTIFIED COST $789,136,336)8 | 799,675,518 | ||
OTHER ASSETS AND LIABILITIES - NET—0.1%9 | 430,244 | ||
TOTAL NET ASSETS—100% | $800,105,762 |
Description | Number of Contracts | Notional Value | Expiration Date | Unrealized Appreciation (Depreciation) |
3United States Treasury Note 2-Year Long Futures | 50 | $10,895,313 | September 2016 | $3,797 |
390 Day Euro Short Futures | 270 | $66,936,375 | September 2016 | $(348) |
3United States Treasury Note 5-Year Short Futures | 125 | $15,014,649 | September 2016 | $(26,660) |
3United States Treasury Note 10-Year Short Futures | 260 | $33,718,750 | September 2016 | $(10,791) |
3United States Treasury Ultra Bond Short Futures | 2 | $350,250 | September 2016 | $(2,114) |
NET UNREALIZED DEPRECIATION ON FUTURES CONTRACTS | $(36,116) |
Settlement Date | Counterparty | Foreign Currency Units to Deliver/Receive | In Exchange For | Unrealized Appreciation (Depreciation) |
Contracts Purchased: | ||||
6/6/2016 | Morgan Stanley Capital SE | 1,600,000 GBP | $2,310,552 | $6,844 |
6/6/2016 | CitiBank N.A. | 2,000,000 GBP | $2,897,248 | $(503) |
6/6/2016 | JPMorgan Chase | 2,900,000 GBP | $4,226,071 | $(25,790) |
8/3/2016 | BNP Paribas SA | 32,280,120 NOK | 5,400,000 SGD | $(59,247) |
Contracts Sold: | ||||
6/6/2016 | Morgan Stanley Capital SE | 1,600,000 GBP | $2,316,576 | $(820) |
6/6/2016 | JPMorgan Chase | 2,900,000 GBP | $4,231,317 | $31,037 |
NET UNREALIZED DEPRECIATION ON FOREIGN EXCHANGE CONTRACTS | $(48,479) |
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 May 31, 2016, these restricted securities amounted to $7,965,768, which represented 1.0% 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 Directors (the “Directors”). At May 31, 2016, these liquid restricted securities amounted to $5,362,569, which represented 0.7% of total net assets. |
3 | Non-income-producing security. |
4 | Issuer in default. |
5 | Market quotations and price evaluations are not available. Fair value determined in accordance with procedures established by and under the general supervision of the Directors. |
6 | Affiliated holdings. |
7 | 7-day net yield. |
8 | The cost of investments for federal tax purposes amounts to $789,956,623. |
9 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
U.S. Corporate Bonds | $— | $34,699,777 | $353,766 | $35,053,543 |
Commercial Mortgage-Backed Security | — | 4,722,775 | — | 4,722,775 |
Collateralized Mortgage Obligations | — | 15,295,867 | — | 15,295,867 |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | 51,100,363 | — | — | 51,100,363 |
International | 1,528,525 | — | — | 1,528,525 |
Preferred Stock | ||||
Domestic | — | — | 4001 | 400 |
Purchased Put Option | 69,330 | 69,330 | ||
Investment Companies2 | 3,448,124 | — | — | 691,904,715 |
TOTAL SECURITIES | $56,077,012 | $54,787,749 | $354,166 | $799,675,518 |
Other Financial Instruments:3 | ||||
Assets | $3,797 | $37,881 | $— | $41,678 |
Liabilities | (39,913) | (86,360) | — | (126,273) |
TOTAL OTHER FINANCIAL INSTRUMENTS | $(36,116) | $(48,479) | $— | $(84,595) |
1 | Shares were exchanged in conjunction with a corporate action for shares of another security whose fair value is determined using valuation techniques utilizing unobservable market data due to observable market data being unavailable. |
2 | As permitted by U.S. generally accepted accounting principles (GAAP), Investment Companies valued at $688,456,591 are measured at fair value using the net asset value (NAV) per share practical expedient and have not been categorized in the chart above but are included in the Total column. The amount included herein is intended to permit reconciliation of the fair value classifications to the amounts presented on the Statement of Assets and Liabilities. The price of shares redeemed in Emerging Markets Fixed Income Core Fund, Federated Mortgage Core Portfolio and High Yield Bond Portfolio is the next determined NAV after receipt of a shareholder redemption request. |
3 | Other financial instruments include futures contracts and foreign exchange contracts. |
GBP | —British Pound |
MTN | —Medium Term Note |
NOK | —Norwegian Krone |
SGD | —Singapore Dollar |
USD | —United States Dollar |
Six Months Ended (unaudited) 5/31/2016 | Year Ended November 30, | |||||
2015 | 2014 | 2013 | 2012 | 2011 | ||
Net Asset Value, Beginning of Period | $8.63 | $9.16 | $9.16 | $9.47 | $8.96 | $9.10 |
Income From Investment Operations: | ||||||
Net investment income | 0.181 | 0.351 | 0.391 | 0.411 | 0.471 | 0.531 |
Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency transactions | 0.09 | (0.56) | 0.00 | (0.35) | 0.53 | (0.12) |
TOTAL FROM INVESTMENT OPERATIONS | 0.27 | (0.21) | 0.39 | 0.06 | 1.00 | 0.41 |
Less Distributions: | ||||||
Distributions from net investment income | (0.19) | (0.32) | (0.39) | (0.37) | (0.49) | (0.55) |
Net Asset Value, End of Period | $8.71 | $8.63 | $9.16 | $9.16 | $9.47 | $8.96 |
Total Return2 | 3.22% | (2.39)% | 4.33% | 0.66% | 11.40% | 4.52% |
Ratios to Average Net Assets: | ||||||
Net expenses | 1.27%3 | 1.27% | 1.26% | 1.26% | 1.26% | 1.26% |
Net investment income | 4.24%3 | 3.91% | 4.26% | 4.42% | 5.10% | 5.77% |
Expense waiver/reimbursement4 | 0.10%3 | 0.09% | 0.07% | 0.07% | 0.06% | 0.07% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $406,218 | $437,375 | $527,657 | $635,469 | $813,104 | $668,477 |
Portfolio turnover | 9% | 17% | 22% | 13% | 7% | 34% |
1 | Per share numbers have 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. 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 the net investment income ratios shown above. |
Six Months Ended (unaudited) 5/31/2016 | Year Ended November 30, | |||||
2015 | 2014 | 2013 | 2012 | 2011 | ||
Net Asset Value, Beginning of Period | $8.62 | $9.15 | $9.14 | $9.46 | $8.95 | $9.10 |
Income From Investment Operations: | ||||||
Net investment income | 0.151 | 0.281 | 0.321 | 0.341 | 0.401 | 0.461 |
Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency transactions | 0.09 | (0.56) | 0.01 | (0.36) | 0.53 | (0.13) |
TOTAL FROM INVESTMENT OPERATIONS | 0.24 | (0.28) | 0.33 | (0.02) | 0.93 | 0.33 |
Less Distributions: | ||||||
Distributions from net investment income | (0.16) | (0.25) | (0.32) | (0.30) | (0.42) | (0.48) |
Net Asset Value, End of Period | $8.70 | $8.62 | $9.15 | $9.14 | $9.46 | $8.95 |
Total Return2 | 2.83% | (3.13)% | 3.66% | (0.20)% | 10.58% | 3.63% |
Ratios to Average Net Assets: | ||||||
Net expenses | 2.02%3 | 2.02% | 2.01% | 2.01% | 2.01% | 2.01% |
Net investment income | 3.49%3 | 3.16% | 3.51% | 3.67% | 4.36% | 5.03% |
Expense waiver/reimbursement4 | 0.10%3 | 0.09% | 0.07% | 0.07% | 0.06% | 0.07% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $62,623 | $68,623 | $88,374 | $103,142 | $126,636 | $123,676 |
Portfolio turnover | 9% | 17% | 22% | 13% | 7% | 34% |
1 | Per share numbers have 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. 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 the net investment income ratios shown above. |
Six Months Ended (unaudited) 5/31/2016 | Year Ended November 30, | |||||
2015 | 2014 | 2013 | 2012 | 2011 | ||
Net Asset Value, Beginning of Period | $8.62 | $9.15 | $9.15 | $9.46 | $8.95 | $9.10 |
Income From Investment Operations: | ||||||
Net investment income | 0.151 | 0.281 | 0.321 | 0.341 | 0.401 | 0.461 |
Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency transactions | 0.09 | (0.56) | 0.00 | (0.35) | 0.53 | (0.13) |
TOTAL FROM INVESTMENT OPERATIONS | 0.24 | (0.28) | 0.32 | (0.01) | 0.93 | 0.33 |
Less Distributions: | ||||||
Distributions from net investment income | (0.16) | (0.25) | (0.32) | (0.30) | (0.42) | (0.48) |
Net Asset Value, End of Period | $8.70 | $8.62 | $9.15 | $9.15 | $9.46 | $8.95 |
Total Return2 | 2.83% | (3.13)% | 3.55% | (0.09)% | 10.58% | 3.63% |
Ratios to Average Net Assets: | ||||||
Net expenses | 2.02%3 | 2.02% | 2.01% | 2.01% | 2.01% | 2.01% |
Net investment income | 3.49%3 | 3.16% | 3.51% | 3.67% | 4.35% | 5.02% |
Expense waiver/reimbursement4 | 0.10%3 | 0.09% | 0.07% | 0.07% | 0.06% | 0.07% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $163,134 | $177,330 | $220,448 | $262,115 | $312,701 | $244,083 |
Portfolio turnover | 9% | 17% | 22% | 13% | 7% | 34% |
1 | Per share numbers have 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. 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 the net investment income ratios shown above. |
Six Months Ended (unaudited) 5/31/2016 | Year Ended November 30, | |||||
2015 | 2014 | 2013 | 2012 | 2011 | ||
Net Asset Value, Beginning of Period | $8.58 | $9.11 | $9.11 | $9.42 | $8.92 | $9.06 |
Income From Investment Operations: | ||||||
Net investment income | 0.181 | 0.351 | 0.391 | 0.411 | 0.471 | 0.521 |
Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency transactions | 0.09 | (0.56) | 0.00 | (0.35) | 0.52 | (0.11) |
TOTAL FROM INVESTMENT OPERATIONS | 0.27 | (0.21) | 0.39 | 0.06 | 0.99 | 0.41 |
Less Distributions: | ||||||
Distributions from net investment income | (0.19) | (0.32) | (0.39) | (0.37) | (0.49) | (0.55) |
Net Asset Value, End of Period | $8.66 | $8.58 | $9.11 | $9.11 | $9.42 | $8.92 |
Total Return2 | 3.24% | (2.40)% | 4.35% | 0.66% | 11.34% | 4.54% |
Ratios to Average Net Assets: | ||||||
Net expenses | 1.27%3 | 1.27% | 1.26% | 1.26% | 1.26% | 1.26% |
Net investment income | 4.24%3 | 3.91% | 4.24% | 4.42% | 5.09% | 5.76% |
Expense waiver/reimbursement4 | 0.10%3 | 0.09% | 0.07% | 0.07% | 0.06% | 0.07% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $73,603 | $76,954 | $89,393 | $90,204 | $86,126 | $59,578 |
Portfolio turnover | 9% | 17% | 22% | 13% | 7% | 34% |
1 | Per share numbers have 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. 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 the net investment income ratios shown above. |
Six Months Ended (unaudited) 5/31/2016 | Year Ended November 30, | |||||
2015 | 2014 | 2013 | 2012 | 2011 | ||
Net Asset Value, Beginning of Period | $8.58 | $9.11 | $9.11 | $9.43 | $8.93 | $9.07 |
Income From Investment Operations: | ||||||
Net investment income | 0.191 | 0.371 | 0.411 | 0.431 | 0.491 | 0.541 |
Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency transactions | 0.09 | (0.56) | 0.00 | (0.36) | 0.52 | (0.11) |
TOTAL FROM INVESTMENT OPERATIONS | 0.28 | (0.19) | 0.41 | 0.07 | 1.01 | 0.43 |
Less Distributions: | ||||||
Distributions from net investment income | (0.20) | (0.34) | (0.41) | (0.39) | (0.51) | (0.57) |
Net Asset Value, End of Period | $8.66 | $8.58 | $9.11 | $9.11 | $9.43 | $8.93 |
Total Return2 | 3.36% | (2.16)% | 4.61% | 0.81% | 11.60% | 4.80% |
Ratios to Average Net Assets: | ||||||
Net expenses | 1.02%3 | 1.02% | 1.01% | 1.01% | 1.01% | 1.01% |
Net investment income | 4.49%3 | 4.16% | 4.51% | 4.66% | 5.33% | 5.97% |
Expense waiver/reimbursement4 | 0.10%3 | 0.09% | 0.07% | 0.07% | 0.06% | 0.07% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $94,528 | $120,807 | $151,517 | $152,799 | $260,363 | $146,274 |
Portfolio turnover | 9% | 17% | 22% | 13% | 7% | 34% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
3 | Computed on an annualized basis. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Assets: | ||
Total investment in securities, at value including $691,904,715 of investment in affiliated holdings (Note 5) (identified cost $789,136,336) | $799,675,518 | |
Restricted cash (Note 2) | 505,550 | |
Income receivable | 663,268 | |
Income receivable from affiliated holdings | 2,271,938 | |
Receivable for shares sold | 278,545 | |
Unrealized appreciation on foreign exchange contracts | 37,881 | |
Receivable for daily variation margin on futures | 2,448 | |
TOTAL ASSETS | 803,435,148 | |
Liabilities: | ||
Payable for investments purchased | $1,326,151 | |
Payable for shares redeemed | 1,448,523 | |
Unrealized depreciation on foreign exchange contracts | 86,360 | |
Payable to adviser (Note 5) | 16,419 | |
Payable for Directors'/Trustees' fees (Note 5) | 1,065 | |
Payable for distribution services fee (Note 5) | 143,813 | |
Payable for other service fees (Notes 2 and 5) | 141,121 | |
Accrued expenses (Note 5) | 165,934 | |
TOTAL LIABILITIES | 3,329,386 | |
Net assets for 91,989,146 shares outstanding | $800,105,762 | |
Net Assets Consist of: | ||
Paid-in capital | $970,493,875 | |
Net unrealized appreciation of investments, futures contracts and translation of assets and liabilities in foreign currency | 10,454,587 | |
Accumulated net realized loss on investments, futures contracts and foreign currency transactions | (179,488,758) | |
Distributions in excess of net investment income | (1,353,942) | |
TOTAL NET ASSETS | $800,105,762 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
Class A Shares: | ||
Net asset value per share ($406,217,624 ÷ 46,633,261 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized | $8.71 | |
Offering price per share (100/95.50 of $8.71) | $9.12 | |
Redemption proceeds per share | $8.71 | |
Class B Shares: | ||
Net asset value per share ($62,623,227 ÷ 7,198,045 shares outstanding), $0.001 par value, 2,000,000,000 shares authorized | $8.70 | |
Offering price per share | $8.70 | |
Redemption proceeds per share (94.50/100 of $8.70) | $8.22 | |
Class C Shares: | ||
Net asset value per share ($163,134,114 ÷ 18,747,008 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized | $8.70 | |
Offering price per share | $8.70 | |
Redemption proceeds per share (99.00/100 of $8.70) | $8.61 | |
Class F Shares: | ||
Net asset value per share ($73,603,027 ÷ 8,500,521 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized | $8.66 | |
Offering price per share (100/99.00 of $8.66) | $8.75 | |
Redemption proceeds per share (99.00/100 of $8.66) | $8.57 | |
Institutional Shares: | ||
Net asset value per share ($94,527,770 ÷ 10,910,311 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized | $8.66 | |
Offering price per share | $8.66 | |
Redemption proceeds per share | $8.66 |
Investment Income: | |||
Dividends (including $14,719,195 received from affiliated holdings (Note 5)) | $15,185,504 | ||
Investment income allocated from affiliated partnership (Note 5) | 6,000,782 | ||
Interest | 1,132,771 | ||
TOTAL INCOME | 22,319,057 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $3,444,406 | ||
Administrative fee (Note 5) | 316,885 | ||
Custodian fees | 20,776 | ||
Transfer agent fee | 480,171 | ||
Directors'/Trustees' fees (Note 5) | 5,481 | ||
Auditing fees | 15,249 | ||
Legal fees | 3,032 | ||
Portfolio accounting fees | 86,195 | ||
Distribution services fee (Note 5) | 856,640 | ||
Other service fees (Notes 2 and 5) | 884,270 | ||
Share registration costs | 36,360 | ||
Printing and postage | 40,130 | ||
Taxes | 31,489 | ||
Miscellaneous (Note 5) | 7,518 | ||
EXPENSES BEFORE ALLOCATION | 6,228,602 | ||
Expenses allocated from affiliated partnership (Note 2) | 68,848 | ||
TOTAL EXPENSES | 6,297,450 | ||
Waiver/reimbursement of investment adviser fee (Notes 2 and 5) | (415,439) | ||
Net expenses | 5,882,011 | ||
Net investment income | 16,437,046 | ||
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts and Foreign Currency Transactions: | |||
Net realized loss on investments and foreign currency transactions (including realized loss of $(973,469) on sales of investments in affiliated holdings (Note 5)) | (12,973,043) | ||
Net realized loss on futures contracts | (1,187,693) | ||
Net realized loss on investments and foreign currency transactions allocated from affiliated partnership (Note 5) | (4,198,808) | ||
Net change in unrealized depreciation of investments and translation of assets and liabilities in foreign currency | 24,788,965 | ||
Net change in unrealized depreciation of futures contracts | 49,366 | ||
Net realized and unrealized gain on investments, futures contracts and foreign currency transactions | 6,478,787 | ||
Change in net assets resulting from operations | $22,915,833 |
Six Months Ended (unaudited) 5/31/2016 | Year Ended 11/30/2015 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $16,437,046 | $37,296,167 |
Net realized loss on investments, including allocation from affiliated partnership, futures contracts and foreign currency transactions | (18,359,544) | (17,988,005) |
Net change in unrealized appreciation/depreciation of investments, futures contracts and translation of assets and liabilities in foreign currency | 24,838,331 | (43,667,193) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 22,915,833 | (24,359,031) |
Distributions to Shareholders: | ||
Distributions from net investment income | ||
Class A Shares | (9,100,459) | (17,543,802) |
Class B Shares | (1,195,179) | (2,216,167) |
Class C Shares | (3,071,240) | (5,651,747) |
Class F Shares | (1,642,043) | (3,017,352) |
Institutional Shares | (2,402,075) | (5,310,318) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (17,410,996) | (33,739,386) |
Share Transactions: | ||
Proceeds from sale of shares | 43,917,480 | 127,873,648 |
Net asset value of shares issued to shareholders in payment of distributions declared | 16,064,288 | 31,026,413 |
Cost of shares redeemed | (146,470,971) | (297,100,837) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (86,489,203) | (138,200,776) |
Change in net assets | (80,984,366) | (196,299,193) |
Net Assets: | ||
Beginning of period | 881,090,128 | 1,077,389,321 |
End of period (including (distributions in excess of) net investment income of $(1,353,942) and $(379,992), respectively) | $800,105,762 | $881,090,128 |
■ | 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 Directors. |
■ | Fixed-income securities and repurchase agreements 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. |
■ | Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market. |
■ | 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 Directors. |
■ | For securities that are fair valued in accordance with procedures established by and under the general supervision of the Directors, certain factors may be considered such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer's financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; |
■ | Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
Other Service Fees Incurred | |
Class A Shares | $507,904 |
Class B Shares | 79,828 |
Class C Shares | 205,718 |
Class F Shares | 90,820 |
TOTAL | $884,270 |
Security | Acquisition Date | Cost | Market Value |
Regional Diversified Funding, Series 144A, 9.250%, 03/15/2030 | 3/10/2000 | $712,972 | $353,766 |
Reliance Industries Ltd., Bond, Series 144A, 8.250%, 01/15/2027 | 1/10/1997 | $1,250,000 | $1,635,153 |
Union Central Life Insurance Co., Note, Series 144A, 8.200%, 11/01/2026 | 10/31/1996 | $497,390 | $614,280 |
Fair Value of Derivative Instruments | ||||
Asset | Liability | |||
Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||||
Interest rate contracts | Receivable for daily variation margin on futures contracts | $(36,116)* | $— | |
Foreign exchange contracts | Unrealized appreciation on foreign exchange contracts | $37,881 | Unrealized depreciation on foreign exchange contracts | $86,360 |
Total derivatives not accounted for as hedging instruments under ASC Topic 815 | $1,765 | $86,360 |
* | 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 Contracts | Forward Exchange Contracts | Purchased Option Contracts | Total | |
Interest rate contracts | $(1,187,693) | $— | $— | $(1,187,693) |
Foreign exchange contracts | — | 254,574 | (196,174) | 58,400 |
TOTAL | $(1,187,693) | $254,574 | $(196,174) | $(1,129,293) |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | ||||
Futures Contracts | Forward Exchange Contracts | Purchased Option Contracts | Total | |
Interest rate contracts | $49,366 | $— | $— | $49,366 |
Foreign exchange contracts | — | (140,047) | (15,280) | (155,327) |
TOTAL | $49,366 | $(140,047) | $(15,280) | $(105,961) |
Six Months Ended 5/31/2016 | Year Ended 11/30/2015 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 2,303,528 | $19,342,872 | 6,170,790 | $55,410,258 |
Shares issued to shareholders in payment of distributions declared | 1,009,605 | 8,487,349 | 1,830,104 | 16,379,604 |
Shares redeemed | (7,378,987) | (64,152,562) | (14,918,476) | (133,416,861) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | (4,065,854) | $(34,322,341) | (6,917,582) | $(61,626,999) |
Six Months Ended 5/31/2016 | Year Ended 11/30/2015 | |||
Class B Shares: | Shares | Amount | Shares | Amount |
Shares sold | 108,747 | $915,877 | 322,829 | $2,896,727 |
Shares issued to shareholders in payment of distributions declared | 132,763 | 1,114,242 | 231,080 | 2,066,506 |
Shares redeemed | (1,007,716) | (8,492,770) | (2,251,076) | (20,167,964) |
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS | (766,206) | $(6,462,651) | (1,697,167) | $(15,204,731) |
Six Months Ended 5/31/2016 | Year Ended 11/30/2015 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 645,509 | $5,421,408 | 2,097,891 | $18,767,021 |
Shares issued to shareholders in payment of distributions declared | 333,952 | 2,804,275 | 573,392 | 5,127,263 |
Shares redeemed | (2,808,862) | (23,644,375) | (6,190,085) | (55,237,945) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (1,829,401) | $(15,418,692) | (3,518,802) | $(31,343,661) |
Six Months Ended 5/31/2016 | Year Ended 11/30/2015 | |||
Class F Shares: | Shares | Amount | Shares | Amount |
Shares sold | 211,681 | $1,776,959 | 632,240 | $5,629,907 |
Shares issued to shareholders in payment of distributions declared | 191,234 | 1,597,898 | 328,448 | 2,922,499 |
Shares redeemed | (875,347) | (7,326,701) | (1,804,413) | (15,997,067) |
NET CHANGE RESULTING FROM CLASS F SHARE TRANSACTIONS | (472,432) | $(3,951,844) | (843,725) | $(7,444,661) |
Six Months Ended 5/31/2016 | Year Ended 11/30/2015 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,971,037 | $16,460,364 | 5,047,243 | $45,169,735 |
Shares issued to shareholders in payment of distributions declared | 246,414 | 2,060,524 | 508,716 | 4,530,541 |
Shares redeemed | (5,384,712) | (44,854,563) | (8,107,935) | (72,281,000) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (3,167,261) | $(26,333,675) | (2,551,976) | $(22,580,724) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (10,301,154) | $(86,489,203) | (15,529,252) | $(138,200,776) |
Expiration Year | Short-Term | Long-Term | Total |
No Expiration | $16,786,030 | $69,256,955 | $86,042,985 |
2016 | $17,683,941 | NA | $17,683,941 |
2017 | $27,421,272 | NA | $27,421,272 |
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 B Shares | 0.75% |
Class C Shares | 0.75% |
Class F Shares | 0.05% |
Distribution Services Fees Incurred | |
Class B Shares | $239,488 |
Class C Shares | 617,152 |
TOTAL | $856,640 |
Affiliates | Balance of Shares Held 11/30/2015 | Purchases/ Additions | Sales/ Reductions | Balance of Shares Held 5/31/2016 | Value | Dividend Income |
*Townsquare Media, Inc., Class A | 178,777 | 10,060 | (61,564) | 127,273 | $1,123,821 | $— |
* | At May 31, 2016, the Fund no longer has ownership of at least 5% of the voting shares. |
Emerging Market Fixed Income Core Fund | Federated Mortgage Core Portfolio | Federated Institutional Prime Value Obligations Fund, Institutional Shares | High Yield Bond Portfolio | Total of Affiliated Transactions | |
Balance of Shares Held 11/30/2015 | 5,944,844 | 13,299,560 | 2,646,004 | 69,416,651 | 91,307,059 |
Purchases/Additions | 776,020 | 657,182 | 99,264,277 | 470,639 | 101,168,118 |
Sales/Reductions | 636,471 | 3,394,600 | 98,462,157 | 10,043,646 | 112,536,874 |
Balance of Shares Held 5/31/2016 | 6,084,393 | 10,562,142 | 3,448,124 | 59,843,644 | 79,938,303 |
Value | $218,598,622 | $105,410,175 | $3,448,124 | $364,447,794 | $691,904,715 |
Dividend Income/Allocated Investment Income | $6,000,782 | $1,631,402 | $6,822 | $13,080,971 | $20,719,977 |
Allocated Net Realized (Loss) | $(4,198,808) | $— | $— | $— | $(4,198,808) |
Purchases | $71,515,965 |
Sales | $167,203,362 |
Beginning Account Value 12/1/2015 | Ending Account Value 5/31/2016 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,032.20 | $6.45 |
Class B Shares | $1,000 | $1,028.30 | $10.24 |
Class C Shares | $1,000 | $1,028.30 | $10.24 |
Class F Shares | $1,000 | $1,032.40 | $6.45 |
Institutional Shares | $1,000 | $1,033.60 | $5.19 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,018.65 | $6.41 |
Class B Shares | $1,000 | $1,014.90 | $10.18 |
Class C Shares | $1,000 | $1,014.90 | $10.18 |
Class F Shares | $1,000 | $1,018.65 | $6.41 |
Institutional Shares | $1,000 | $1,019.90 | $5.15 |
1 | Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.27% |
Class B Shares | 2.02% |
Class C Shares | 2.02% |
Class F Shares | 1.27% |
Institutional Shares | 1.02% |
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31417P601
CUSIP 31417P700
CUSIP 31417P809
CUSIP 31417P841
2016 ©Federated Investors, Inc.
Item 2. Code of Ethics
Not Applicable
Item 3. Audit Committee Financial Expert
Not Applicable
Item 4. Principal Accountant Fees and Services
Not Applicable
Item 5. Audit Committee of Listed Registrants
Not Applicable
Item 6. Schedule of Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not Applicable |
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not Applicable |
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not Applicable |
Item 10. Submission of Matters to a Vote of Security Holders
No Changes to Report
Item 11. Controls and Procedures
(a) The registrant’s President and Treasurer have concluded that the
registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. 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 Fixed Income Securities, Inc.
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date July 26, 2016
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 July 26, 2016
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date July 26, 2016