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 Hermes Fixed Income Securities, Inc.
______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
Peter J. Germain, Esquire
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 11/30/20
Date of Reporting Period: Six months ended 05/31/20
Item 1. | Reports to Stockholders |
![](https://capedge.com/proxy/N-CSRS/0001623632-20-001361/img71414e011.gif)
Share Class | Ticker | A | STIAX | B | SINBX | C | SINCX |
F | STFSX | Institutional | STISX | R6 | STILX |
![](https://capedge.com/proxy/N-CSRS/0001623632-20-001361/donahuechrisphoto.jpg)
Donahue
![](https://capedge.com/proxy/N-CSRS/0001623632-20-001361/donahuechrissigsmall.jpg)
Security Type | Percentage of Total Net Assets2 |
Corporate Debt Securities | 54.8% |
Mortgage-Backed Securities3 | 11.2% |
Foreign Government Securities | 7.6% |
U.S. Treasury Securities | 6.4% |
Collateralized Mortgage Obligations | 4.4% |
Asset-Backed Securities | 1.8% |
Derivative Contracts4 | (2.7)% |
Other Security Types5 | 12.6% |
Cash Equivalents6 | 4.4% |
Other Assets and Liabilities—Net7 | (0.5)% |
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 | 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. |
5 | Other Security Types consist of common stock, preferred stock, purchased options and exchange-traded funds. |
6 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. |
7 | Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities. |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS—6.3% | |||
Basic Industry - Chemicals—0.0% | |||
$135,000 | Albemarle Corp., Sr. Unsecd. Note, 5.450%, 12/1/2044 | $139,813 | |
Basic Industry - Metals & Mining—0.0% | |||
200,000 | Southern Copper Corp., Sr. Unsecd. Note, 6.750%, 4/16/2040 | 257,524 | |
Capital Goods - Aerospace & Defense—0.2% | |||
105,000 | Boeing Co., Sr. Unsecd. Note, 2.950%, 2/1/2030 | 100,176 | |
30,000 | Boeing Co., Sr. Unsecd. Note, 3.950%, 8/1/2059 | 27,598 | |
160,000 | Huntington Ingalls Industries, Inc., Sr. Unsecd. Note, 3.483%, 12/1/2027 | 169,026 | |
35,000 | Leidos, Inc., Unsecd. Note, 144A, 3.625%, 5/15/2025 | 37,728 | |
100,000 | Leidos, Inc., Unsecd. Note, 144A, 4.375%, 5/15/2030 | 110,618 | |
200,000 | Lockheed Martin Corp., Sr. Unsecd. Note, 2.900%, 3/1/2025 | 218,869 | |
185,000 | Northrop Grumman Corp., Sr. Unsecd. Note, 3.250%, 1/15/2028 | 205,300 | |
200,000 | Textron, Inc., Sr. Unsecd. Note, 4.300%, 3/1/2024 | 212,319 | |
TOTAL | 1,081,634 | ||
Capital Goods - Building Materials—0.0% | |||
20,000 | Allegion PLC, Sr. Unsecd. Note, 3.500%, 10/1/2029 | 20,226 | |
50,000 | Allegion US Holdings Co., Inc., Sr. Unsecd. Note, 3.200%, 10/1/2024 | 50,633 | |
90,000 | Allegion US Holdings Co., Inc., Sr. Unsecd. Note, 3.550%, 10/1/2027 | 90,228 | |
TOTAL | 161,087 | ||
Capital Goods - Construction Machinery—0.0% | |||
120,000 | CNH Industrial NV, Sr. Unsecd. Note, Series MTN, 3.850%, 11/15/2027 | 119,284 | |
Capital Goods - Diversified Manufacturing—0.0% | |||
85,000 | General Electric Co., Sr. Unsecd. Note, 3.625%, 5/1/2030 | 84,236 | |
35,000 | Otis Worldwide Corp., Sr. Unsecd. Note, 144A, 2.565%, 2/15/2030 | 35,432 | |
TOTAL | 119,668 | ||
Communications - Cable & Satellite—0.2% | |||
190,000 | Charter Communications Operating LLC, 5.375%, 5/1/2047 | 225,582 | |
200,000 | Comcast Corp., Sr. Unsecd. Note, 3.150%, 2/15/2028 | 219,421 | |
200,000 | Comcast Corp., Sr. Unsecd. Note, 3.300%, 2/1/2027 | 223,183 | |
100,000 | Comcast Corp., Sr. Unsecd. Note, 3.400%, 4/1/2030 | 113,212 |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS—continued | |||
Communications - Cable & Satellite—continued | |||
$30,000 | Comcast Corp., Sr. Unsecd. Note, 3.450%, 2/1/2050 | $33,398 | |
200,000 | Comcast Corp., Sr. Unsecd. Note, 3.950%, 10/15/2025 | 229,391 | |
TOTAL | 1,044,187 | ||
Communications - Media & Entertainment—0.1% | |||
100,000 | Discovery Communications LLC, Sr. Unsecd. Note, 4.650%, 5/15/2050 | 106,742 | |
65,000 | Fox Corp., Sr. Unsecd. Note, Series WI, 4.709%, 1/25/2029 | 76,089 | |
100,000 | Fox Corp., Sr. Unsecd. Note, Series WI, 5.576%, 1/25/2049 | 132,757 | |
100,000 | Omnicom Group, Inc., Sr. Unsecd. Note, 4.200%, 6/1/2030 | 107,963 | |
100,000 | ViacomCBS, Inc., Sr. Unsecd. Note, 4.950%, 1/15/2031 | 110,880 | |
300,000 | Walt Disney Co., Sr. Unsecd. Note, 3.000%, 9/15/2022 | 316,116 | |
TOTAL | 850,547 | ||
Communications - Telecom Wireless—0.1% | |||
250,000 | American Tower Corp., Sr. Unsecd. Note, 5.000%, 2/15/2024 | 284,936 | |
100,000 | Crown Castle International Corp., Sr. Unsecd. Note, 5.200%, 2/15/2049 | 131,062 | |
50,000 | T-Mobile USA, Inc., Sec. Fac. Bond, 144A, 3.875%, 4/15/2030 | 54,454 | |
25,000 | T-Mobile USA, Inc., Sec. Fac. Bond, 144A, 4.500%, 4/15/2050 | 28,233 | |
TOTAL | 498,685 | ||
Communications - Telecom Wirelines—0.1% | |||
150,000 | AT&T, Inc., Sr. Unsecd. Note, 4.250%, 3/1/2027 | 168,760 | |
200,000 | AT&T, Inc., Sr. Unsecd. Note, Series WI, 5.300%, 8/15/2058 | 250,334 | |
140,000 | Bell Canada, Sr. Unsecd. Note, 4.464%, 4/1/2048 | 179,450 | |
227,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 4.672%, 3/15/2055 | 313,120 | |
TOTAL | 911,664 | ||
Consumer Cyclical - Automotive—0.5% | |||
100,000 | General Motors Co., Sr. Unsecd. Note, 5.200%, 4/1/2045 | 95,650 | |
60,000 | Hyundai Capital America, Sr. Unsecd. Note, 144A, 2.375%, 2/10/2023 | 59,309 | |
3,000,000 | Hyundai Capital America, Sr. Unsecd. Note, 144A, 3.000%, 2/10/2027 | 2,802,209 | |
120,000 | Toyota Motor Credit Corp., Sr. Unsecd. Note, Series GMTN, 2.700%, 1/11/2023 | 124,994 | |
TOTAL | 3,082,162 | ||
Consumer Cyclical - Retailers—0.5% | |||
100,000 | Advance Auto Parts, Inc., Sr. Unsecd. Note, 144A, 3.900%, 4/15/2030 | 102,339 |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS—continued | |||
Consumer Cyclical - Retailers—continued | |||
$2,830,000 | Alimentation Couche-Tard, Inc., 144A, 2.950%, 1/25/2030 | $2,852,938 | |
100,000 | Alimentation Couche-Tard, Inc., Sr. Unsecd. Note, 144A, 3.800%, 1/25/2050 | 95,476 | |
45,000 | AutoNation, Inc., Sr. Unsecd. Note, 4.750%, 6/1/2030 | 46,942 | |
175,000 | CVS Health Corp., Sr. Unsecd. Note, 5.050%, 3/25/2048 | 225,408 | |
100,000 | Dollar Tree, Inc., Sr. Unsecd. Note, 3.700%, 5/15/2023 | 106,751 | |
120,000 | Home Depot, Inc., Sr. Unsecd. Note, 2.950%, 6/15/2029 | 133,466 | |
TOTAL | 3,563,320 | ||
Consumer Cyclical - Services—0.1% | |||
250,000 | Amazon.com, Inc., Sr. Unsecd. Note, 3.150%, 8/22/2027 | 284,445 | |
65,000 | Booking Holdings, Inc., Sr. Unsecd. Note, 4.625%, 4/13/2030 | 74,570 | |
200,000 | Cintas Corp. No. 2, Sr. Unsecd. Note, 3.700%, 4/1/2027 | 224,320 | |
100,000 | IHS Markit Ltd., Sr. Unsecd. Note, 4.750%, 8/1/2028 | 114,921 | |
80,000 | Visa, Inc., Sr. Unsecd. Note, 2.750%, 9/15/2027 | 88,901 | |
TOTAL | 787,157 | ||
Consumer Non-Cyclical - Food/Beverage—0.5% | |||
200,000 | Anheuser-Busch Cos LLC/Anheuser-Busch InBev Worldwide, Inc., Sr. Unsecd. Note, 4.900%, 2/1/2046 | 232,624 | |
2,210,000 | Coca-Cola Femsa S.A.B. de C.V., Sr. Unsecd. Note, 2.750%, 1/22/2030 | 2,251,073 | |
100,000 | Constellation Brands, Inc., Sr. Unsecd. Note, 5.250%, 11/15/2048 | 125,656 | |
100,000 | Keurig Dr Pepper, Inc., Sr. Unsecd. Note, 5.085%, 5/25/2048 | 130,765 | |
35,000 | McCormick & Co., Inc., Sr. Unsecd. Note, 2.500%, 4/15/2030 | 36,401 | |
125,000 | PepsiCo, Inc., 2.750%, 4/30/2025 | 136,063 | |
75,000 | PepsiCo, Inc., Sr. Unsecd. Note, 3.625%, 3/19/2050 | 90,122 | |
300,000 | Tyson Foods, Inc., Sr. Unsecd. Note, 4.500%, 6/15/2022 | 318,689 | |
TOTAL | 3,321,393 | ||
Consumer Non-Cyclical - Health Care—0.0% | |||
45,000 | DH Europe Finance II S.a r.l., Sr. Unsecd. Note, 2.600%, 11/15/2029 | 47,363 | |
40,000 | Dentsply Sirona, Inc., Sr. Unsecd. Note, 3.250%, 6/1/2030 | 41,031 | |
100,000 | PerkinElmer, Inc., Sr. Unsecd. Note, 3.300%, 9/15/2029 | 103,805 | |
35,000 | Thermo Fisher Scientific, Inc., Sr. Unsecd. Note, 4.133%, 3/25/2025 | 39,812 | |
TOTAL | 232,011 | ||
Consumer Non-Cyclical - Pharmaceuticals—0.2% | |||
90,000 | AbbVie, Inc., Sr. Unsecd. Note, 144A, 3.200%, 11/21/2029 | 96,818 |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS—continued | |||
Consumer Non-Cyclical - Pharmaceuticals—continued | |||
$95,000 | AbbVie, Inc., Sr. Unsecd. Note, 144A, 4.250%, 11/21/2049 | $109,794 | |
150,000 | Amgen, Inc., Sr. Unsecd. Note, 2.450%, 2/21/2030 | 157,226 | |
200,000 | AstraZeneca PLC, Sr. Unsecd. Note, 4.000%, 1/17/2029 | 236,569 | |
200,000 | Bayer US Finance II LLC, Sr. Unsecd. Note, 144A, 4.250%, 12/15/2025 | 224,233 | |
75,000 | Bristol-Myers Squibb Co., Sr. Unsecd. Note, 144A, 3.400%, 7/26/2029 | 85,896 | |
55,000 | Bristol-Myers Squibb Co., Sr. Unsecd. Note, 144A, 4.250%, 10/26/2049 | 72,514 | |
90,000 | Eli Lilly & Co., Sr. Unsecd. Note, 3.375%, 3/15/2029 | 103,684 | |
TOTAL | 1,086,734 | ||
Consumer Non-Cyclical - Products—0.0% | |||
100,000 | Procter & Gamble Co., Sr. Unsecd. Note, 3.000%, 3/25/2030 | 114,736 | |
Consumer Non-Cyclical - Supermarkets—0.0% | |||
150,000 | Kroger Co., Sr. Unsecd. Note, 4.450%, 2/1/2047 | 181,047 | |
Consumer Non-Cyclical - Tobacco—0.0% | |||
100,000 | Reynolds American, Inc., Sr. Unsecd. Note, 7.000%, 8/4/2041 | 119,985 | |
Energy - Independent—0.3% | |||
150,000 | Apache Corp., Sr. Unsecd. Note, 4.250%, 1/15/2030 | 132,379 | |
175,000 | Cimarex Energy Co., Sr. Unsecd. Note, 4.375%, 3/15/2029 | 173,280 | |
200,000 | EOG Resources, Inc., Sr. Unsecd. Note, 4.150%, 1/15/2026 | 227,763 | |
2,010,000 | Occidental Petroleum Corp., Sr. Unsecd. Note, 2.900%, 8/15/2024 | 1,608,000 | |
TOTAL | 2,141,422 | ||
Energy - Integrated—0.1% | |||
225,000 | Exxon Mobil Corp., Sr. Unsecd. Note, 3.482%, 3/19/2030 | 255,625 | |
70,000 | Shell International Finance B.V., Sr. Unsecd. Note, 4.000%, 5/10/2046 | 81,541 | |
TOTAL | 337,166 | ||
Energy - Midstream—0.2% | |||
145,000 | Boardwalk Pipeline Partners LP, Sr. Unsecd. Note, 4.800%, 5/3/2029 | 141,762 | |
300,000 | Energy Transfer Partners LP, Sr. Unsecd. Note, 4.900%, 2/1/2024 | 319,959 | |
100,000 | Enterprise Products Operating LLC, Sr. Unsecd. Note, 3.700%, 1/31/2051 | 101,513 | |
200,000 | Kinder Morgan Energy Partners LP, Sr. Unsecd. Note, 6.375%, 3/1/2041 | 250,245 | |
100,000 | ONEOK, Inc., Sr. Unsecd. Note, 4.550%, 7/15/2028 | 100,320 |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS—continued | |||
Energy - Midstream—continued | |||
$115,000 | TC Pipelines, LP, Sr. Unsecd. Note, 3.900%, 5/25/2027 | $117,885 | |
TOTAL | 1,031,684 | ||
Energy - Refining—0.0% | |||
105,000 | Valero Energy Corp., Sr. Unsecd. Note, 4.000%, 4/1/2029 | 115,908 | |
Financial Institution - Banking—1.0% | |||
150,000 | Associated Banc-Corp., Sub. Note, 4.250%, 1/15/2025 | 155,290 | |
200,000 | Bank of America Corp., Sr. Unsecd. Note, 2.592%, 4/29/2031 | 206,017 | |
100,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 2.884%, 10/22/2030 | 105,217 | |
250,000 | Bank of America Corp., Sub. Note, Series MTN, 4.000%, 1/22/2025 | 273,205 | |
200,000 | Bank of New York Mellon Corp., Sr. Unsecd. Note, Series MTN, 2.661%, 5/16/2023 | 207,267 | |
65,000 | Capital One Financial Corp., Sr. Unsecd. Note, 3.900%, 1/29/2024 | 69,101 | |
165,000 | Citigroup, Inc., Sr. Unsecd. Note, 2.976%, 11/5/2030 | 171,752 | |
270,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.400%, 5/1/2026 | 292,903 | |
270,000 | Citizens Financial Group, Inc., Sub. Note, 4.300%, 12/3/2025 | 295,214 | |
200,000 | Compass Bank, Birmingham, Sub. Note, Series BKNT, 3.875%, 4/10/2025 | 204,812 | |
55,000 | FNB Corp. (PA), Sr. Unsecd. Note, 2.200%, 2/24/2023 | 55,014 | |
100,000 | Fifth Third Bancorp, Sr. Unsecd. Note, 3.950%, 3/14/2028 | 111,554 | |
500,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.814%, 4/23/2029 | 553,513 | |
200,000 | HSBC Holdings PLC, Sr. Unsecd. Note, 3.262%, 3/13/2023 | 206,746 | |
200,000 | Manufacturers & Traders Trust Co., Sr. Unsecd. Note, Series BKNT, 2.500%, 5/18/2022 | 207,189 | |
250,000 | Morgan Stanley, Sr. Unsecd. Note, 3.625%, 1/20/2027 | 277,635 | |
1,935,000 | PNC Bank National Association, Series BKNT, 2.700%, 10/22/2029 | 2,034,287 | |
145,876 | 1 | Regional Diversified Funding, 144A, 9.250%, 3/15/2030 | 93,360 |
200,000 | Truist Bank, Sub. Note, Series BKNT, 3.300%, 5/15/2026 | 214,513 | |
350,000 | Wells Fargo & Co., Sr. Unsecd. Note, 3.000%, 10/23/2026 | 375,194 | |
150,000 | Wells Fargo & Co., Sr. Unsecd. Note, Series MTN, 2.879%, 10/30/2030 | 155,464 | |
TOTAL | 6,265,247 | ||
Financial Institution - Insurance - Life—0.1% | |||
200,000 | AIA Group Ltd., Sr. Unsecd. Note, 144A, 3.600%, 4/9/2029 | 220,131 | |
200,000 | American International Group, Inc., Sr. Unsecd. Note, 4.125%, 2/15/2024 | 219,584 |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - Insurance - Life—continued | |||
$150,000 | Massachusetts Mutual Life Insurance Co., Sub. Note, 144A, 4.900%, 4/1/2077 | $180,315 | |
180,000 | Pacific Life Insurance Co., Sub. Note, 144A, 4.300%, 10/24/2067 | 177,639 | |
TOTAL | 797,669 | ||
Financial Institution - Insurance - P&C—0.0% | |||
45,000 | Liberty Mutual Group, Inc., Sr. Unsecd. Note, 144A, 4.250%, 6/15/2023 | 48,185 | |
Financial Institution - REIT - Apartment—0.1% | |||
195,000 | Avalonbay Communities, Inc., Sr. Unsecd. Note, Series MTN, 3.350%, 5/15/2027 | 210,400 | |
30,000 | Camden Property Trust, Sr. Unsecd. Note, 2.800%, 5/15/2030 | 31,300 | |
125,000 | UDR, Inc., Sr. Unsecd. Note, 3.100%, 11/1/2034 | 126,763 | |
TOTAL | 368,463 | ||
Financial Institution - REIT - Healthcare—0.4% | |||
100,000 | Physicians Realty Trust, Sr. Unsecd. Note, 4.300%, 3/15/2027 | 98,947 | |
2,485,000 | Welltower, Inc., Sr. Unsecd. Note, 2.700%, 2/15/2027 | 2,391,165 | |
TOTAL | 2,490,112 | ||
Financial Institution - REIT - Office—0.1% | |||
90,000 | Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 3.950%, 1/15/2027 | 99,284 | |
50,000 | Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 3.950%, 1/15/2028 | 54,908 | |
175,000 | Boston Properties LP, Sr. Unsecd. Note, 4.500%, 12/1/2028 | 201,591 | |
TOTAL | 355,783 | ||
Financial Institution - REIT - Other—0.0% | |||
135,000 | WP Carey, Inc., Sr. Unsecd. Note, 4.600%, 4/1/2024 | 143,032 | |
Financial Institution - REIT - Retail—0.0% | |||
80,000 | Regency Centers LP, Sr. Unsecd. Note, 4.125%, 3/15/2028 | 83,867 | |
Technology—0.2% | |||
100,000 | Apple, Inc., Sr. Unsecd. Note, 4.450%, 5/6/2044 | 131,656 | |
75,000 | Broadcom, Inc., Sr. Unsecd. Note, 144A, 4.150%, 11/15/2030 | 78,251 | |
50,000 | Broadcom, Inc., Sr. Unsecd. Note, 144A, 4.700%, 4/15/2025 | 54,902 | |
85,000 | Equifax, Inc., Sr. Unsecd. Note, 2.600%, 12/1/2024 | 88,331 | |
200,000 | Experian Finance PLC., Sr. Unsecd. Note, 144A, 4.250%, 2/1/2029 | 223,518 | |
35,000 | Fidelity National Information Services, Inc., Sr. Unsecd. Note, 3.750%, 5/21/2029 | 40,512 | |
75,000 | Fiserv, Inc., Sr. Unsecd. Note, 3.500%, 7/1/2029 | 82,928 |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS—continued | |||
Technology—continued | |||
$350,000 | Ingram Micro, Inc., Sr. Unsecd. Note, 5.450%, 12/15/2024 | $338,863 | |
40,000 | Keysight Technologies, Inc., Sr. Unsecd. Note, 3.000%, 10/30/2029 | 42,279 | |
125,000 | Lam Research Corp., Sr. Unsecd. Note, 4.000%, 3/15/2029 | 145,884 | |
25,000 | Micron Technology, Inc., Sr. Unsecd. Note, 2.497%, 4/24/2023 | 25,633 | |
80,000 | Total System Services, Inc., Sr. Unsecd. Note, 4.800%, 4/1/2026 | 92,374 | |
TOTAL | 1,345,131 | ||
Transportation - Airlines—0.0% | |||
45,000 | Southwest Airlines Co., Sr. Unsecd. Note, 5.250%, 5/4/2025 | 45,631 | |
Transportation - Railroads—0.0% | |||
65,000 | Union Pacific Corp., Sr. Unsecd. Note, 2.400%, 2/5/2030 | 68,170 | |
Transportation - Services—0.5% | |||
100,000 | FedEx Corp., Sr. Unsecd. Note, 4.050%, 2/15/2048 | 97,597 | |
2,500,000 | Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 2.700%, 11/1/2024 | 2,535,171 | |
200,000 | Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 3.950%, 3/10/2025 | 213,222 | |
140,000 | Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 2.800%, 3/1/2022 | 142,782 | |
TOTAL | 2,988,772 | ||
Utilities—0.2% | |||
1,550,000 | Dominion Energy, Inc., Jr. Sub. Note, 2.715%, 8/15/2021 | 1,576,716 | |
Utility - Electric—0.3% | |||
200,000 | Enel Finance International NV, Sr. Unsecd. Note, 144A, 4.875%, 6/14/2029 | 236,672 | |
300,000 | Exelon Generation Co. LLC, Sr. Unsecd. Note, 4.250%, 6/15/2022 | 316,241 | |
40,000 | FirstEnergy Transmission LLC, Sr. Unsecd. Note, 144A, 4.550%, 4/1/2049 | 47,813 | |
140,000 | Kansas City Power And Light Co., Sr. Unsecd. Note, 4.200%, 3/15/2048 | 171,984 | |
110,000 | National Rural Utilities Cooperative Finance Corp., Sr. Unsecd. Note, 2.950%, 2/7/2024 | 118,878 | |
105,000 | NextEra Energy Capital Holdings, Inc., Sr. Unsecd. Note, 3.150%, 4/1/2024 | 112,796 | |
65,000 | NiSource Finance Corp., Sr. Unsecd. Note, 4.375%, 5/15/2047 | 77,541 | |
300,000 | PPL Capital Funding, Inc., Sr. Unsecd. Note, 4.200%, 6/15/2022 | 317,979 | |
250,000 | Southern Co., Sr. Unsecd. Note, 3.250%, 7/1/2026 | 275,762 |
Principal Amount, Shares or Contracts | Value | ||
CORPORATE BONDS—continued | |||
Utility - Electric—continued | |||
$140,000 | Virginia Electric & Power Co., Sr. Unsecd. Note, Series A, 3.500%, 3/15/2027 | $157,976 | |
TOTAL | 1,833,642 | ||
Utility - Natural Gas—0.3% | |||
1,410,000 | Dominion Energy Gas Holdings LLC, Sr. Unsecd. Note, Series B, 3.000%, 11/15/2029 | 1,450,175 | |
65,000 | Dominion Energy Gas Holdings LLC, Sr. Unsecd. Note, Series C, 3.900%, 11/15/2049 | 66,605 | |
100,000 | National Fuel Gas Co., Sr. Unsecd. Note, 5.500%, 1/15/2026 | 102,129 | |
120,000 | Southern Natural Gas, Sr. Unsecd. Note, 144A, 4.800%, 3/15/2047 | 130,723 | |
TOTAL | 1,749,632 | ||
TOTAL CORPORATE BONDS (IDENTIFIED COST $39,981,866) | 41,458,870 | ||
ASSET-BACKED SECURITIES—1.4% | |||
Auto Receivables—1.0% | |||
1,875,000 | Drive Auto Receivables Trust 2020-1, Class C, 2.360%, 3/16/2026 | 1,854,308 | |
1,100,000 | Hyundai Auto Receivables Trust 2019-B, Class C, 2.400%, 6/15/2026 | 1,120,113 | |
3,295,000 | Santander Retail Auto Lease Trust 2020-A, Class D, 3.150%, 11/20/2024 | 3,236,882 | |
TOTAL | 6,211,303 | ||
Credit Card—0.2% | |||
750,000 | Master Credit Card Trust 2020-1A, Class B, 2.340%, 9/21/2024 | 745,761 | |
675,000 | Trillium Credit Card Trust II 2020-1A, Class B, 2.331%, 12/26/2024 | 654,987 | |
TOTAL | 1,400,748 | ||
Student Loans—0.2% | |||
1,400,000 | Social Professional Loan Program LLC 2020-A, Class A2FX, 2.540%, 5/15/2046 | 1,436,509 | |
TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $9,092,723) | 9,048,560 | ||
COMMERCIAL MORTGAGE-BACKED SECURITY—0.2% | |||
Agency Commercial Mortgage-Backed Securities—0.2% | |||
1,000,000 | FREMF Mortgage Trust 2013-K25 REMIC, Class B, 3.619%, 11/25/2045 (IDENTIFIED COST $941,161) | 1,034,506 |
Principal Amount, Shares or Contracts | Value | ||
COLLATERALIZED MORTGAGE OBLIGATIONS—2.9% | |||
Commercial Mortgage—2.7% | |||
$810,000 | Bank 2018-BN12, Class A4, 4.255%, 5/15/2061 | $937,898 | |
500,000 | 2 | Bank 2018-BN15, Class A4, 4.407% (12-month USLIBOR +0.000%), 11/15/2061 | 588,527 |
1,500,000 | Benchmark Mortgage Trust 2018-B4, Class A5, 4.121%, 7/15/2051 | 1,726,947 | |
675,000 | Benchmark Mortgage Trust 2019-B11, Class A5, 3.542%, 5/15/2052 | 755,556 | |
1,076,545 | Benchmark Mortgage Trust 2019-B12, Class A1, 2.256%, 8/15/2052 | 1,096,657 | |
1,600,000 | Citigroup Commercial Mortgage Trust 2013-GC11, Class B, 3.732%, 4/10/2046 | 1,613,855 | |
2,100,000 | Commercial Mortgage Trust 2013-LC6, Class AM, 3.282%, 1/10/2046 | 2,133,315 | |
1,000,000 | Commercial Mortgage Trust 2015-DC1, Class AM, 3.724%, 2/10/2048 | 1,031,756 | |
625,000 | Deutsche Bank Commercial Mortgage Trust 2016-C3, Class A5, 2.890%, 8/10/2049 | 659,491 | |
5,000,000 | Fontainebleau Miami Beach Trust, Class B, 3.447%, 12/10/2036 | 4,721,820 | |
1,500,000 | JPMBB Commercial Mortgage Securities Trust 2015-C28, Class AS, 3.532%, 10/15/2048 | 1,550,246 | |
1,000,000 | Morgan Stanley Capital I 2012-C4, Class AS, 3.773%, 3/15/2045 | 965,144 | |
TOTAL | 17,781,212 | ||
Federal Home Loan Mortgage Corporation—0.2% | |||
800,000 | FHLMC REMIC, Series K070, Class A2, 3.303%, 11/25/2027 | 913,508 | |
699,312 | FHLMC REMIC, Series K105, Class A1, 1.536%, 9/25/2029 | 721,436 | |
TOTAL | 1,634,944 | ||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $19,357,962) | 19,416,156 | ||
COMMON STOCKS—2.4% | |||
Auto Components—0.2% | |||
65,343 | 3 | American Axle & Manufacturing Holdings, Inc. | 464,589 |
54,406 | Goodyear Tire & Rubber Co. | 414,030 | |
5,385 | Lear Corp. | 571,079 | |
TOTAL | 1,449,698 | ||
Chemicals—0.1% | |||
27,765 | 3 | Koppers Holdings, Inc. | 460,066 |
Communications Equipment—0.1% | |||
7,355 | 3 | Lumentum Holdings, Inc. | 539,269 |
Principal Amount, Shares or Contracts | Value | ||
COMMON STOCKS—continued | |||
Containers & Packaging—0.3% | |||
5,570 | 3 | Crown Holdings, Inc. | $364,445 |
41,018 | Graphic Packaging Holding Co. | 593,530 | |
57,481 | O-I Glass, Inc. | 440,304 | |
19,943 | WestRock Co. | 559,601 | |
TOTAL | 1,957,880 | ||
Electric Utilities—0.1% | |||
17,685 | NRG Energy, Inc. | 637,544 | |
Electronic Equipment Instruments & Components—0.1% | |||
52,275 | 3 | TTM Technologies, Inc. | 604,822 |
Equity Real Estate Investment Trusts (REITs)—0.1% | |||
20,215 | Gaming and Leisure Properties, Inc. | 698,226 | |
Gas Utilities—0.1% | |||
36,176 | Suburban Propane Partners LP | 527,808 | |
Hotels Restaurants & Leisure—0.3% | |||
19,540 | Boyd Gaming Corp. | 417,765 | |
28,040 | MGM Resorts International | 481,727 | |
29,870 | Red Rock Resorts, Inc. | 412,206 | |
20,695 | Six Flags Entertainment Corp. | 475,571 | |
TOTAL | 1,787,269 | ||
Independent Power and Renewable Electricity Producers—0.1% | |||
24,025 | Vistra Energy Corp. | 491,071 | |
Machinery—0.1% | |||
14,460 | Altra Holdings, Inc. | 448,260 | |
Media—0.2% | |||
23,760 | 3 | Altice USA, Inc. | 611,107 |
118,715 | Emerald Holding, Inc. | 263,547 | |
209,300 | Entercom Communication Corp. | 349,531 | |
36,505 | 3 | iHeartMedia, Inc. | 317,594 |
TOTAL | 1,541,779 | ||
Metals & Mining—0.2% | |||
11,005 | Compass Minerals International, Inc. | 530,221 | |
58,205 | Teck Resources Ltd. | 552,365 | |
TOTAL | 1,082,586 | ||
Oil Gas & Consumable Fuels—0.3% | |||
18,150 | Enviva Partners LP/Enviva Partners Finance Corp. | 634,887 |
Principal Amount, Shares or Contracts | Value | ||
COMMON STOCKS—continued | |||
Oil Gas & Consumable Fuels—continued | |||
45,034 | Parsley Energy, Inc. | $411,611 | |
25,185 | Sunoco LP | 649,773 | |
72,470 | 3 | WPX Energy, Inc. | 410,905 |
TOTAL | 2,107,176 | ||
Pharmaceuticals—0.0% | |||
6,202 | 3 | Mallinckrodt PLC | 17,490 |
Technology Hardware Storage & Peripherals—0.1% | |||
13,690 | 3 | Dell Technologies, Inc. | 679,572 |
14,485 | 3 | NCR Corp. | 261,454 |
TOTAL | 941,026 | ||
Textiles Apparel & Luxury Goods—0.0% | |||
25,755 | Hanesbrands, Inc. | 253,944 | |
TOTAL COMMON STOCKS (IDENTIFIED COST $21,413,459) | 15,545,914 | ||
PREFERRED STOCK—0.0% | |||
Financial Institution - Broker/Asset Mgr/Exchange—0.0% | |||
40,000 | 1,3,4 | Lehman Brothers Holdings, Inc., Pfd., 5.670% (IDENTIFIED COST $3,400) | 400 |
U.S. TREASURIES—6.4% | |||
U.S. Treasury Notes—6.4% | |||
$15,137,250 | U.S. Treasury Inflation-Protected Notes, 0.250%, 7/15/2029 | 16,248,147 | |
20,000,000 | United States Treasury Note, 1.625%, 6/30/2021 | 20,306,872 | |
5,000,000 | United States Treasury Note, 1.750%, 12/31/2024 | 5,332,126 | |
TOTAL U.S. TREASURIES (IDENTIFIED COST $40,235,482) | 41,887,145 | ||
PURCHASED CALL OPTIONS—0.4% | |||
33,000,000 | 3 | HSBC GBP CALL/USD PUT, Notional Amount $33,000,000, Exercise Price, $1.32, Expiration Date 6/4/2020 | 33 |
3,000 | 3 | iShares iBoxx High Yield Corporate Bond ETF, Notional Amount $24,726,000, Exercise Price, $82.00, Expiration Date 6/19/2020 | 270,000 |
300 | 3 | Russell 2000 Index, Notional Amount $41,821,200, Exercise Price, $1,350, Expiration Date 6/19/2020 | 2,481,000 |
300 | 3 | United States Treasury Bond Futures, Notional Amount $54,000,000, Exercise Price, $183.00, Expiration Date 6/26/2020 | 168,750 |
TOTAL PURCHASED CALL OPTIONS (IDENTIFIED COST $1,672,809) | 2,919,783 |
Principal Amount, Shares or Contracts | Value | ||
PURCHASED PUT OPTIONS—0.1% | |||
21,400,000 | 3 | BNP EUR PUT/USD CALL, Notional Amount $21,400,000, Exercise Price, $1.07, Expiration Date 7/6/2020 | $10,058 |
30,000,000 | 3 | Bank of America Merril Lynch USD PUT/CAD CALL, Notional Amount $30,000,000, Exercise Price, $1.35, Expiration Date 7/31/2020 | 106,350 |
25,000,000 | 3 | Barclays USD PUT/ZAR CALL, Notional Amount $25,000,000, Exercise Price, $1.50, Expiration Date 6/10/2020 | 25 |
5,000 | 3 | iShares iBoxx High Yield Corporate Bond ETF, Notional Amount $41,210,000, Exercise Price, $75.00, Expiration Date 6/19/2020 | 57,500 |
17,500,000 | 3 | JPM USD PUT/ZAR CALL, Notional Amount $17,500,000, Exercise Price, $17.50, Expiration Date 8/24/2020 | 435,785 |
20,000,000 | 3 | Morgan Stanley USD PUT/MXN CALL, Notional Amount $20,000,000, Exercise Price, $19.50, Expiration Date 6/5/2020 | 20 |
300 | 3 | United States Treasury Bond Futures, Notional Amount $54,000,000, Exercise Price, $176.00, Expiration Date 6/26/2020 | 276,562 |
TOTAL PURCHASED PUT OPTIONS (IDENTIFIED COST $2,724,432) | 886,300 | ||
EXCHANGE-TRADED FUNDS—9.5% | |||
500,000 | iShares iBoxx High Yield Corporate Bond ETF | 41,210,000 | |
200,000 | iShares JP Morgan USD Emerging Markets Bond Fund | 21,280,000 | |
TOTAL EXCHANGE-TRADED FUNDS (IDENTIFIED COST $62,629,246) | 62,490,000 | ||
INVESTMENT COMPANIES—71.9% | |||
15,836,862 | Emerging Markets Core Fund | 150,450,185 | |
3,891,287 | Federated Institutional Prime Value Obligations Fund, Institutional Shares, 0.40%5 | 3,894,401 | |
7,876,572 | Federated Mortgage Core Portfolio | 79,868,438 | |
1,702,343 | Federated Project and Trade Finance Core Fund | 14,861,456 | |
37,687,472 | High Yield Bond Portfolio | 223,109,836 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $491,633,257) | 472,184,316 | ||
TOTAL INVESTMENT IN SECURITIES—101.5% (IDENTIFIED COST $689,685,797)6 | 666,871,950 | ||
OTHER ASSETS AND LIABILITIES - NET—(1.5)%7 | (10,005,490) | ||
TOTAL NET ASSETS—100% | $656,866,460 |
Settlement Date | Counterparty | Foreign Currency Units to Deliver/Receive | In Exchange For | Unrealized Appreciation (Depreciation) |
Contracts Purchased: | ||||
6/1/2020 | Bank of America N.A. | 13,747,500 CAD | $10,000,000 | $(15,252) |
6/8/2020 | BNP Paribas SA | 10,000,000 EUR | $10,831,800 | $269,991 |
6/15/2020 | JPMorgan Chase | 10,627,432 NZD | $6,400,000 | $196,712 |
6/22/2020 | Credit Agricole CIB | 12,000,000 GBP | $14,693,400 | $127,850 |
6/22/2020 | Barclays Bank PLC Wholesale | 12,500,000 GBP | $14,822,200 | $616,602 |
7/14/2020 | Barclays Bank PLC Wholesale | 25,047,461 NZD | $15,000,000 | $545,057 |
Contracts Sold: | ||||
6/1/2020 | Bank of America N.A. | 13,750,000 CAD | $10,000,000 | $13,436 |
6/8/2020 | State Street Bank & Trust Co. | 10,000,000 EUR | $10,857,110 | $(244,680) |
6/15/2020 | State Street Bank & Trust Co. | 10,485,732 NZD | $6,400,000 | $(108,756) |
6/22/2020 | Credit Agricole CIB | 12,000,000 GBP | $14,820,480 | $(770) |
6/22/2020 | Morgan Stanley | 12,500,000 GBP | $15,285,000 | $(153,802) |
7/14/2020 | JPMorgan Chase | 8,136,119 NZD | $5,000,000 | $(49,471) |
7/14/2020 | JPMorgan Chase | 16,841,714 NZD | $10,000,000 | $(452,373) |
NET UNREALIZED APPRECIATION ON FOREIGN EXCHANGE CONTRACTS | $744,544 |
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized Appreciation (Depreciation) | |
Long Futures: | |||||
3United States Treasury Note 2-Year Long Futures | 30 | $6,625,313 | September 2020 | $2,745 | |
Short Futures: | |||||
3United States Treasury Note 10-Year Short Futures | 45 | $6,257,813 | September 2020 | $(18,165) | |
3United States Treasury Note 10-Year Ultra Short Futures | 16 | $2,517,250 | September 2020 | $(13,786) | |
3United States Treasury Ultra Bond Short Futures | 3 | $654,094 | September 2020 | $(7,695) | |
NET UNREALIZED DEPRECIATION ON FUTURES CONTRACTS | $(36,901) |
Credit Default Swap | |||||||||
Counter- party | Reference Entity | Buy/ Sell | Pay/ Receive Fixed Rate | Expiration Date | Implied Credit Spread at 5/31/20208 | Notional Amount | Market Value | Upfront Premiums Paid (Received) | Unrealized Depreciation |
Credit Suisse High Yield | CDX Index HY Series 33 | Buy | 5.00% | 12/20/2024 | 1.42% | $28,500,000 | $(520,279) | $1,047,532 | $(1,567,811) |
Counterparty | Description | Notional Amount | Expiration Date | Exercise Price | Value |
Call Options: | |||||
Barclays Bank PLC | USD CALL/CAD PUT | $20,000,000 | June 2020 | $1.39 | $(108,400) |
Credit Agricole | USD CALL/MXN PUT | $10,000,000 | June 2020 | $20.00 | $(983,040) |
JP Morgan | iShares iBoxx High Yield Corporate Bond ETF (5,000 Contracts) | $41,210,000 | June 2020 | $81.00 | $(797,500) |
JP Morgan | AUD CALL/USD PUT | $10,000,000 | June 2020 | $0.67 | $(66,420) |
JP Morgan | AUD CALL/USD PUT | $10,000,000 | August 2020 | $0.69 | $(94,130) |
JP Morgan | EUR CALL/USD PUT | $10,950,000 | July 2020 | $1.10 | $(189,818) |
JP Morgan | NZD CALL/USD PUT | $10,000,000 | June 2020 | $0.62 | $(51,950) |
JP Morgan | NZD CALL/USD PUT | $10,000,000 | August 2020 | $0.65 | $(50,270) |
JP Morgan | USD CALL/ZAR PUT | $12,500,000 | June 2020 | $18.20 | $(61,300) |
JP Morgan | Russell 2000 Index (5,00 Contracts) | $69,702,000 | June 2020 | $1,225.00 | $(9,232,500) |
Put Options: | |||||
JP Morgan | AUD PUT/USD CALL | $10,000,000 | June 2020 | $0.65 | $(2,650) |
JP Morgan | NZD PUT/USD CALL | $10,000,000 | June 2020 | $0.60 | $(1,340) |
Credit Agricole | USD PUT/MXN CALL | $15,000,000 | June 2020 | $22.78 | $(498,810) |
Bank of America Merril Lynch | USD PUT/ZAR CALL | $12,500,000 | June 2020 | $18.00 | $(376,225) |
JP Morgan | United States Treasury Bond Futures (200 Contracts) | $36,000,000 | June 2020 | $174.00 | $(96,875) |
(PREMIUMS RECEIVED $5,053,546) | $(12,611,228) |
Affiliates | Balance of Shares Held 11/30/2019 | Purchases/ Additions | Sales/ Reductions |
Emerging Markets Core Fund | 15,913,218 | 428,694 | (505,050) |
Federated Bank Loan Core Fund | 2,322,252 | — | (2,322,252) |
Federated Government Obligations Fund, Premier Shares* | 6,135,000 | 70,919,625 | (77,054,625) |
Federated Institutional Prime Value Obligations Fund, Institutional Shares | 11,381,428 | 258,756,990 | (266,247,130) |
Federated Mortgage Core Portfolio | 12,436,070 | 555,760 | (5,115,258) |
Federated Project and Trade Finance Core Fund | — | 1,702,343 | — |
High Yield Bond Portfolio | 36,693,781 | 993,691 | — |
TOTAL OF AFFILIATED TRANSACTIONS | 84,881,749 | 333,357,103 | (351,244,315) |
Balance of Shares Held 5/31/2020 | Value | Change in Unrealized Appreciation/ Depreciation | Net Realized Gain/ (Loss) | Dividend/ Interest Income |
15,836,862 | $150,450,185 | $(7,056,546) | $218,381 | $4,110,963 |
— | $— | $(69,445) | $208,803 | $39,171 |
— | $— | N/A | N/A | $33,639 |
3,891,288 | $3,894,401 | $— | $(17,593) | $94,787 |
7,876,572 | $79,868,438 | $1,839,816 | $360,254 | $1,546,895 |
1,702,343 | $14,861,456 | $(353,321) | $— | $214,777 |
37,687,472 | $223,109,836 | $(12,159,360) | $— | $7,264,665 |
66,994,537 | $472,184,316 | $(17,798,856) | $769,845 | $13,304,897 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions. |
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund invests in a portfolio of Federated Core Trust (“Core Trust”), which is managed by Federated Investment Management Company (the “Adviser”). Core Trust is an open-end management company, registered under the Investment Company Act of 1940, as amended (the “Act”), available only to registered investment companies and other institutional investors. The investment objective of High Yield Bond Portfolio (HYCORE), a portfolio of Core Trust, is to seek high current income. Income distributions from HYCORE are declared daily and paid monthly, and are recorded by the Fund as dividend income. Capital gain distributions, if any, from HYCORE are declared and paid annually, and are recorded by the Fund as capital gains. The investment objective of Emerging Markets Core Fund (EMCOR), a portfolio of Core Trust, is to achieve a total return on its assets. EMCOR’s secondary objective is to achieve a high level of income. Distributions of net investment income from EMCOR are declared daily and paid monthly. Capital gain distributions, if any, from EMCOR are declared and paid annually, and are recorded by the Fund as capital gains. Federated Hermes, Inc. (“Federated”) receives no advisory or administrative fees from HYCORE and EMCOR. Copies of the HYCORE and EMCOR financial statements are available on the EDGAR Database on the SEC’s website or upon request from the Fund. | |
1 | Market quotations and price evaluations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established by and under the general supervision of the Fund’s Board of Directors (the “Directors”). |
2 | Floating/variable note with current rate and current maturity or next reset date shown. |
3 | Non-income-producing security. |
4 | Issuer in default. |
5 | 7-day net yield. |
6 | The cost of investments for federal tax purposes amounts to $689,748,789. |
7 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
8 | Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into |
the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as "Defaulted" indicates a credit event has occurred for the referenced entity or obligation. |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
Corporate Bonds | $— | $41,365,510 | $93,360 | $41,458,870 |
Asset-Backed Securities | — | 9,048,560 | — | 9,048,560 |
Commercial Mortgage-Backed Securities | — | 1,034,506 | — | 1,034,506 |
Collateralized Mortgage Obligations | — | 19,416,156 | — | 19,416,156 |
U.S. Treasuries | — | 41,887,145 | — | 41,887,145 |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | 14,993,549 | — | — | 14,993,549 |
International | 552,365 | — | — | 552,365 |
Preferred Stocks | ||||
Domestic | — | — | 4001 | 400 |
Purchased Call Options | 2,919,750 | 33 | — | 2,919,783 |
Purchased Put Options | 334,062 | 552,238 | — | 886,300 |
Exchange-Traded Funds | 62,490,000 | — | — | 62,490,000 |
Investment Companies2 | 457,322,860 | — | — | 472,184,316 |
TOTAL SECURITIES | $538,612,586 | $113,304,148 | $93,760 | $666,871,950 |
Other Financial Instruments | ||||
Assets | ||||
Foreign Exchange Contracts | $— | $1,769,648 | $— | $1,769,648 |
Futures Contracts | 2,745 | — | — | 2,745 |
Swap Contracts | — | — | — | — |
Written Option Contracts | — | — | — | — |
Liabilities | ||||
Foreign Exchange Contracts | — | (1,025,104) | — | (1,025,104) |
Futures Contracts | (39,646) | — | — | (39,646) |
Swap Contracts | — | (520,279) | — | (520,279) |
Written Option Contracts | (10,126,875) | (2,484,353) | — | (12,611,228) |
TOTAL OTHER FINANCIAL INSTRUMENTS | $(10,163,776) | $(2,260,088) | $— | $(12,423,864) |
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), an Investment Company valued at $14,861,456 is measured at fair value using the net asset value (NAV) per share practical expedient and has not been categorized in the chart above but is included in the Total column. The price of shares redeemed of Federated Project and Trade Finance Core Fund may be determined as of the closing NAV of the fund up to twenty-four days after receipt of a shareholder redemption request. |
AUD | —Australian Dollar |
BKNT | —Bank Notes |
CAD | —Canadian Dollar |
ETF | —Exchange-Traded Fund |
EUR | —Euro Currency |
FHLMC | —Federal Home Loan Mortgage Corporation |
FREMF | —Freddie Mac Multifamily K-Deals |
GBP | —British Pound |
GMTN | —Global Medium Term Note |
LIBOR | —London Interbank Offered Rate |
LLC | —Limited Liability Corporation |
LP | —Limited Partnership |
MTN | —Medium Term Note |
MXN | —Mexican Peso |
NZD | —New Zealand Dollar |
REIT | —Real Estate Investment Trust |
REMIC | —Real Estate Mortgage Investment Conduit |
USD | —United States Dollar |
ZAR | —South African Rand |
Six Months Ended (unaudited) 5/31/2020 | Year Ended November 30, | |||||
2019 | 2018 | 2017 | 2016 | 2015 | ||
Net Asset Value, Beginning of Period | $9.09 | $8.60 | $9.08 | $8.86 | $8.63 | $9.16 |
Income From Investment Operations: | ||||||
Net investment income1 | 0.16 | 0.36 | 0.37 | 0.36 | 0.36 | 0.35 |
Net realized and unrealized gain (loss) | (0.37) | 0.47 | (0.51) | 0.24 | 0.21 | (0.56) |
TOTAL FROM INVESTMENT OPERATIONS | (0.21) | 0.83 | (0.14) | 0.60 | 0.57 | (0.21) |
Less Distributions: | ||||||
Distributions from net investment income | (0.15) | (0.34) | (0.34) | (0.38) | (0.34) | (0.32) |
Net Asset Value, End of Period | $8.73 | $9.09 | $8.60 | $9.08 | $8.86 | $8.63 |
Total Return2 | (2.27)% | 9.87% | (1.56)% | 6.85% | 6.81% | (2.39)% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 0.94%4 | 0.94% | 0.93% | 0.96% | 1.26% | 1.27% |
Net investment income | 3.55%4 | 3.99% | 4.18% | 3.99% | 4.16% | 3.91% |
Expense waiver/reimbursement5 | 0.13%4 | 0.12% | 0.13% | 0.12% | 0.09% | 0.09% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $276,686 | $307,049 | $307,761 | $342,586 | $392,737 | $437,375 |
Portfolio turnover | 36% | 58% | 48% | 18% | 14% | 17% |
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 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | Computed on an annualized basis. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Six Months Ended (unaudited) 5/31/2020 | Year Ended November 30, | |||||
2019 | 2018 | 2017 | 2016 | 2015 | ||
Net Asset Value, Beginning of Period | $9.08 | $8.58 | $9.07 | $8.85 | $8.62 | $9.15 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.12 | 0.29 | 0.30 | 0.29 | 0.30 | 0.28 |
Net realized and unrealized gain (loss) | (0.37) | 0.48 | (0.52) | 0.24 | 0.21 | (0.56) |
TOTAL FROM INVESTMENT OPERATIONS | (0.25) | 0.77 | (0.22) | 0.53 | 0.51 | (0.28) |
Less Distributions: | ||||||
Distributions from net investment income | (0.12) | (0.27) | (0.27) | (0.31) | (0.28) | (0.25) |
Net Asset Value, End of Period | $8.71 | $9.08 | $8.58 | $9.07 | $8.85 | $8.62 |
Total Return2 | (2.77)% | 9.18% | (2.43)% | 6.06% | 6.02% | (3.13)% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.72%4 | 1.70% | 1.70% | 1.73% | 2.01% | 2.02% |
Net investment income | 2.75%4 | 3.27% | 3.41% | 3.23% | 3.41% | 3.16% |
Expense waiver/reimbursement5 | 0.13%4 | 0.12% | 0.13% | 0.12% | 0.09% | 0.09% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $11,978 | $19,567 | $28,507 | $46,640 | $57,432 | $68,623 |
Portfolio turnover | 36% | 58% | 48% | 18% | 14% | 17% |
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 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | Computed on an annualized basis. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Six Months Ended (unaudited) 5/31/2020 | Year Ended November 30, | |||||
2019 | 2018 | 2017 | 2016 | 2015 | ||
Net Asset Value, Beginning of Period | $9.09 | $8.59 | $9.07 | $8.85 | $8.62 | $9.15 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.12 | 0.29 | 0.30 | 0.29 | 0.30 | 0.28 |
Net realized and unrealized gain (loss) | (0.37) | 0.48 | (0.50) | 0.24 | 0.21 | (0.56) |
TOTAL FROM INVESTMENT OPERATIONS | (0.25) | 0.77 | (0.20) | 0.53 | 0.51 | (0.28) |
Less Distributions: | ||||||
Distributions from net investment income | (0.12) | (0.27) | (0.28) | (0.31) | (0.28) | (0.25) |
Net Asset Value, End of Period | $8.72 | $9.09 | $8.59 | $9.07 | $8.85 | $8.62 |
Total Return2 | (2.76)% | 9.19% | (2.30)% | 6.04% | 6.02% | (3.13)% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.70%4 | 1.68% | 1.68% | 1.70% | 2.01% | 2.02% |
Net investment income | 2.79%4 | 3.28% | 3.43% | 3.25% | 3.41% | 3.16% |
Expense waiver/reimbursement5 | 0.12%4 | 0.12% | 0.14% | 0.12% | 0.09% | 0.09% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $51,827 | $58,296 | $76,758 | $132,528 | $155,650 | $177,330 |
Portfolio turnover | 36% | 58% | 48% | 18% | 14% | 17% |
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 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | Computed on an annualized basis. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Six Months Ended (unaudited) 5/31/2020 | Year Ended November 30, | |||||
2019 | 2018 | 2017 | 2016 | 2015 | ||
Net Asset Value, Beginning of Period | $9.03 | $8.54 | $9.02 | $8.81 | $8.58 | $9.11 |
Income From Investment Operations: | ||||||
Net investment income1 | 0.16 | 0.35 | 0.37 | 0.36 | 0.36 | 0.35 |
Net realized and unrealized gain (loss) | (0.37) | 0.48 | (0.51) | 0.23 | 0.21 | (0.56) |
TOTAL FROM INVESTMENT OPERATIONS | (0.21) | 0.83 | (0.14) | 0.59 | 0.57 | (0.21) |
Less Distributions: | ||||||
Distributions from net investment income | (0.15) | (0.34) | (0.34) | (0.38) | (0.34) | (0.32) |
Net Asset Value, End of Period | $8.67 | $9.03 | $8.54 | $9.02 | $8.81 | $8.58 |
Total Return2 | (2.28)% | 9.95% | (1.57)% | 6.79% | 6.86% | (2.40)% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 0.93%4 | 0.94% | 0.93% | 0.96% | 1.26% | 1.27% |
Net investment income | 3.56%4 | 3.99% | 4.18% | 3.99% | 4.16% | 3.91% |
Expense waiver/reimbursement5 | 0.12%4 | 0.12% | 0.13% | 0.11% | 0.09% | 0.09% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $49,578 | $53,136 | $51,431 | $60,561 | $69,364 | $76,954 |
Portfolio turnover | 36% | 58% | 48% | 18% | 14% | 17% |
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 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | Computed on an annualized basis. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Six Months Ended (unaudited) 5/31/2020 | Year Ended November 30, | |||||
2019 | 2018 | 2017 | 2016 | 2015 | ||
Net Asset Value, Beginning of Period | $9.04 | $8.55 | $9.03 | $8.81 | $8.58 | $9.11 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.17 | 0.38 | 0.40 | 0.38 | 0.38 | 0.37 |
Net realized and unrealized gain (loss) | (0.37) | 0.48 | (0.51) | 0.25 | 0.21 | (0.56) |
TOTAL FROM INVESTMENT OPERATIONS | (0.20) | 0.86 | (0.11) | 0.63 | 0.59 | (0.19) |
Less Distributions: | ||||||
Distributions from net investment income | (0.17) | (0.37) | (0.37) | (0.41) | (0.36) | (0.34) |
Net Asset Value, End of Period | $8.67 | $9.04 | $8.55 | $9.03 | $8.81 | $8.58 |
Total Return2 | (2.24)% | 10.28% | (1.25)% | 7.23% | 7.12% | (2.16)% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 0.62%4 | 0.62% | 0.62% | 0.64% | 1.01% | 1.02% |
Net investment income | 3.87%4 | 4.23% | 4.49% | 4.24% | 4.41% | 4.16% |
Expense waiver/reimbursement5 | 0.18%4 | 0.19% | 0.18% | 0.17% | 0.09% | 0.09% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $262,449 | $275,189 | $134,398 | $136,141 | $93,764 | $120,807 |
Portfolio turnover | 36% | 58% | 48% | 18% | 14% | 17% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | Computed on an annualized basis. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Six Months Ended (unaudited) 5/31/2020 | Year Ended November 30, | Period Ended 11/30/20171 | ||
2019 | 2018 | |||
Net Asset Value, Beginning of Period | $9.10 | $8.60 | $9.09 | $8.96 |
Income From Investment Operations: | ||||
Net investment income (loss)2 | 0.17 | 0.38 | 0.40 | 0.31 |
Net realized and unrealized gain (loss) | (0.37) | 0.49 | (0.52) | 0.11 |
TOTAL FROM INVESTMENT OPERATIONS | (0.20) | 0.87 | (0.12) | 0.42 |
Less Distributions: | ||||
Distributions from net investment income | (0.17) | (0.37) | (0.37) | (0.29) |
Net Asset Value, End of Period | $8.73 | $9.10 | $8.60 | $9.09 |
Total Return3 | (2.21)% | 10.35% | (1.36)% | 4.73% |
Ratios to Average Net Assets: | ||||
Net expenses4 | 0.61%5 | 0.61% | 0.61% | 0.61%5 |
Net investment income | 3.89%5 | 4.30% | 4.49% | 4.03%5 |
Expense waiver/reimbursement6 | 0.12%5 | 0.12% | 0.12% | 0.12%5 |
Supplemental Data: | ||||
Net assets, end of period (000 omitted) | $4,348 | $4,390 | $3,790 | $5,251 |
Portfolio turnover | 36% | 58% | 48% | 18%7 |
1 | Reflects operations for the period from January 27, 2017 (date of initial investment) to November 30, 2017. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | Computed on an annualized basis. |
6 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
7 | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the fiscal year ended November 30, 2017. |
Assets: | ||
Investment in securities, at value including $472,184,316 of investment in affiliated holdings* (identified cost $689,685,797) | $666,871,950 | |
Cash | 258,634 | |
Due from broker (Note 2) | 370,986 | |
Due from broker for swap contracts | 1,720,000 | |
Deposit at broker for short sales | 280,000 | |
Income receivable | 666,069 | |
Income receivable from affiliated holdings | 2,126,103 | |
Receivable for investments sold | 257,342 | |
Receivable for shares sold | 428,387 | |
Unrealized appreciation on foreign exchange contracts | 1,769,648 | |
Receivable for periodic payments from swap contracts | 286,917 | |
TOTAL ASSETS | 675,036,036 | |
Liabilities: | ||
Payable for investments purchased | $1,179,637 | |
Payable for shares redeemed | 2,527,770 | |
Written options outstanding (premiums $5,053,546), at value | 12,611,228 | |
Unrealized depreciation on foreign exchange contracts | 1,025,104 | |
Bank overdraft denominated in foreign currencies (identified cost $34,602) | 34,695 | |
Payable for variation margin on futures contracts | 36,254 | |
Payable for Directors’/Trustees’ fees (Note 5) | 559 | |
Swaps, at value (premium received $1,047,532) | 520,279 | |
Payable for investment adviser fee (Note 5) | 22,959 | |
Payable for administrative fees (Note 5) | 4,198 | |
Payable for distribution services fee (Note 5) | 40,240 | |
Payable for other service fees (Notes 2 and 5) | 74,822 | |
Accrued expenses (Note 5) | 91,831 | |
TOTAL LIABILITIES | 18,169,576 | |
Net assets for 75,485,613 shares outstanding | $656,866,460 | |
Net Assets Consist of: | ||
Paid-in capital | $782,103,289 | |
Total distributable earnings (loss) | (125,236,829) | |
TOTAL NET ASSETS | $656,866,460 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
Class A Shares: | ||
Net asset value per share ($276,686,363 ÷ 31,696,250 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized | $8.73 | |
Offering price per share (100/95.50 of $8.73) | $9.14 | |
Redemption proceeds per share | $8.73 | |
Class B Shares: | ||
Net asset value per share ($11,977,986 ÷ 1,374,791 shares outstanding), $0.001 par value, 2,000,000,000 shares authorized | $8.71 | |
Offering price per share | $8.71 | |
Redemption proceeds per share (94.50/100 of $8.71) | $8.23 | |
Class C Shares: | ||
Net asset value per share ($51,826,891 ÷ 5,941,950 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized | $8.72 | |
Offering price per share | $8.72 | |
Redemption proceeds per share (99.00/100 of $8.72) | $8.63 | |
Class F Shares: | ||
Net asset value per share ($49,577,878 ÷ 5,720,341 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized | $8.67 | |
Offering price per share (100/99.00 of $8.67) | $8.76 | |
Redemption proceeds per share (99.00/100 of $8.67) | $8.58 | |
Institutional Shares: | ||
Net asset value per share ($262,449,207 ÷ 30,254,334 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized | $8.67 | |
Offering price per share | $8.67 | |
Redemption proceeds per share | $8.67 | |
Class R6 Shares: | ||
Net asset value per share ($4,348,135 ÷ 497,947 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized | $8.73 | |
Offering price per share | $8.73 | |
Redemption proceeds per share | $8.73 |
* | See information listed after the Fund’s Portfolio of Investments. |
Investment Income: | |||
Dividends (including $13,271,258 received from affiliated holdings* and net of foreign taxes withheld of $598) | $13,870,697 | ||
Interest | 1,882,391 | ||
Net income on securities loaned (includes $33,639 received from affiliated holding related to cash collateral balances*) | 3,649 | ||
TOTAL INCOME | 15,756,737 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $1,931,445 | ||
Administrative fee (Note 5) | 276,842 | ||
Custodian fees | 28,203 | ||
Transfer agent fee (Note 2) | 366,577 | ||
Directors’/Trustees’ fees (Note 5) | 3,659 | ||
Auditing fees | 16,750 | ||
Legal fees | 5,087 | ||
Portfolio accounting fees | 101,238 | ||
Distribution services fee (Note 5) | 263,749 | ||
Other service fees (Notes 2 and 5) | 513,994 | ||
Share registration costs | 53,936 | ||
Printing and postage | 30,554 | ||
Miscellaneous (Note 5) | 18,612 | ||
TOTAL EXPENSES | 3,610,646 | ||
Waiver and Reimbursements: | |||
Waiver/reimbursement of investment adviser fee (Note 5) | $(407,869) | ||
Reimbursement of other operating expenses (Notes 2 and 5) | (114,235) | ||
TOTAL WAIVER AND REIMBURSEMENTS | (522,104) | ||
Net expenses | 3,088,542 | ||
Net investment income | 12,668,195 |
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Written Options, Swap Contracts, Foreign Exchange Contracts and Foreign Currency Transactions: | |||
Net realized gain on investments (including net realized gain of $769,845 on sales of investments in affiliated holdings*) | 41,318,904 | ||
Net realized loss on foreign currency transactions | (633,218) | ||
Net realized loss on foreign exchange contracts | (10,545,888) | ||
Net realized loss on futures contracts | (5,813,510) | ||
Net realized loss on written options | (29,230,659) | ||
Net realized loss on swap contracts | (889,856) | ||
Net change in unrealized depreciation of investments (including net change in unrealized depreciation of $(17,798,856) on investments in affiliated holdings*) | (21,092,812) | ||
Net change in unrealized depreciation of foreign exchange contracts | 601,512 | ||
Net change in unrealized depreciation of futures contracts | (35,723) | ||
Net change in unrealized appreciation of written options | (8,546,448) | ||
Net change in unrealized appreciation of swap contracts | (1,567,811) | ||
Net realized and unrealized loss on investments, futures contracts, written options, foreign exchange contracts, swap contracts and foreign currency transactions | (36,435,509) | ||
Change in net assets resulting from operations | $(23,767,314) |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 5/31/2020 | Year Ended 11/30/2019 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $12,668,195 | $25,689,121 |
Net realized gain (loss) | (5,794,227) | 6,611,984 |
Net change in unrealized appreciation/depreciation | (30,641,282) | 27,466,024 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | (23,767,314) | 59,767,129 |
Distributions to Shareholders: | ||
Class A Shares | (5,038,807) | (11,731,219) |
Class B Shares | (218,711) | (778,660) |
Class C Shares | (740,821) | (2,150,521) |
Class F Shares | (892,740) | (2,016,220) |
Institutional Shares | (5,475,810) | (7,741,222) |
Class R6 Shares | (83,408) | (163,824) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (12,450,297) | (24,581,666) |
Share Transactions: | ||
Proceeds from sale of shares | 105,594,271 | 246,837,928 |
Net asset value of shares issued to shareholders in payment of distributions declared | 11,964,094 | 23,431,272 |
Cost of shares redeemed | (142,102,191) | (190,471,402) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (24,543,826) | 79,797,798 |
Change in net assets | (60,761,437) | 114,983,261 |
Net Assets: | ||
Beginning of period | 717,627,897 | 602,644,636 |
End of period | $656,866,460 | $717,627,897 |
■ | Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Directors. |
■ | 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. |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $159,243 | $(15,174) |
Class B Shares | 11,781 | (1,260) |
Class C Shares | 31,062 | (314) |
Class F Shares | 25,498 | (681) |
Institutional Shares | 138,566 | (96,806) |
Class R6 Shares | 427 | — |
TOTAL | $366,577 | $(114,235) |
Other Service Fees Incurred | |
Class A Shares | $362,444 |
Class B Shares | 19,664 |
Class C Shares | 68,253 |
Class F Shares | 63,633 |
TOTAL | $513,994 |
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 | $— | Payable for daily variation margin on futures contracts | $36,901* | |
Foreign exchange contracts | Unrealized appreciation on foreign exchange contracts | $1,769,648 | Unrealized depreciation on foreign exchange contracts | $1,025,104 |
Equity contracts | Purchased options, in securities at value | $2,808,500 | $— | |
Foreign exchange contracts | Purchased options, in securities at value | $552,271 | ||
Interest rate contracts | Purchased options, in securities at value | $445,312 | ||
Equity contracts | $— | Written option Contracts outstanding at value | $10,030,000 | |
Foreign exchange contracts | $— | Written option Contracts outstanding at value | $2,484,353 | |
Interest rate contracts | $— | Written option Contracts outstanding at value | $96,875 | |
Credit contracts | $— | Swaps, at value | $520,279 | |
Total derivatives not accounted for as hedging instruments under ASC Topic 815 | $5,575,731 | $14,193,512 |
* | 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 | ||||||
Credit Default Swaps | Futures Contracts | Foreign Exchange Contracts | Purchased Options1 | Written Options | Total | |
Interest rate contracts | $— | $(6,237,934) | $— | $132,104 | $(3,498,390) | $(9,604,220) |
Equity contracts | — | 424,424 | — | 37,087,352 | (31,168,576) | 6,343,200 |
Foreign exchange contracts | — | — | (10,545,888) | (19,338) | 5,436,307 | (5,128,919) |
Credit contracts | (889,856) | — | — | — | — | (889,856) |
TOTAL | $(889,856) | $(5,813,510) | $(10,545,888) | $37,200,118 | $(29,230,659) | $(9,279,795) |
1 | The net realized gain (loss) on Purchased Options is found within the Net realized gain on investments on the Statement of Operations. |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | ||||||
Credit Default Swaps | Futures Contracts | Foreign Exchange Contracts | Purchased Options2 | Written Options | Total | |
Interest rate contracts | $— | $(35,723) | $— | $50,452 | $(307,790) | $(293,061) |
Equity contracts | — | — | — | 465,334 | (6,374,531) | (5,909,197) |
Foreign exchange contracts | — | — | 601,512 | (458,941) | (1,864,127) | (1,721,556) |
Credit contracts | (1,567,811) | — | — | — | — | (1,567,811) |
TOTAL | $(1,567,811) | $(35,723) | $601,512 | $56,845 | $(8,546,448) | $(9,491,625) |
2 | The net change in unrealized appreciation of Purchased Options is found within the Net Change in unrealized depreciation of investments on the Statement of Operations. |
Six Months Ended 5/31/2020 | Year Ended 11/30/2019 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,767,802 | $15,622,572 | 4,403,727 | $39,325,465 |
Shares issued to shareholders in payment of distributions declared | 536,632 | 4,685,787 | 1,238,599 | 10,880,918 |
Shares redeemed | (4,373,020) | (37,382,868) | (7,671,003) | (67,767,746) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | (2,068,586) | $(17,074,509) | (2,028,677) | $(17,561,363) |
Six Months Ended 5/31/2020 | Year Ended 11/30/2019 | |||
Class B Shares: | Shares | Amount | Shares | Amount |
Shares sold | 4,433 | $38,414 | 40,771 | $358,050 |
Shares issued to shareholders in payment of distributions declared | 23,188 | 203,715 | 84,516 | 736,753 |
Shares redeemed | (808,665) | (6,837,192) | (1,291,246) | (11,466,856) |
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS | (781,044) | $(6,595,063) | (1,165,959) | $(10,372,053) |
Six Months Ended 5/31/2020 | Year Ended 11/30/2019 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 530,019 | $4,706,799 | 1,003,680 | $8,917,861 |
Shares issued to shareholders in payment of distributions declared | 81,383 | 712,312 | 235,546 | 2,056,471 |
Shares redeemed | (1,085,119) | (9,455,537) | (3,758,432) | (33,365,417) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (473,717) | $(4,036,426) | (2,519,206) | $(22,391,085) |
Six Months Ended 5/31/2020 | Year Ended 11/30/2019 | |||
Class F Shares: | Shares | Amount | Shares | Amount |
Shares sold | 262,486 | $2,308,064 | 450,074 | $4,001,786 |
Shares issued to shareholders in payment of distributions declared | 100,331 | 869,697 | 225,005 | 1,962,974 |
Shares redeemed | (526,755) | (4,493,418) | (813,027) | (7,164,629) |
NET CHANGE RESULTING FROM CLASS F SHARE TRANSACTIONS | (163,938) | $(1,315,657) | (137,948) | $(1,199,869) |
Six Months Ended 5/31/2020 | Year Ended 11/30/2019 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 9,187,021 | $82,142,147 | 21,727,615 | $193,064,192 |
Shares issued to shareholders in payment of distributions declared | 623,820 | 5,409,177 | 867,990 | 7,630,337 |
Shares redeemed | (10,002,586) | (83,248,402) | (7,873,478) | (69,754,110) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (191,745) | $4,302,922 | 14,722,127 | $130,940,419 |
Six Months Ended 5/31/2020 | Year Ended 11/30/2019 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 86,353 | $776,275 | 130,772 | $1,170,574 |
Shares issued to shareholders in payment of distributions declared | 9,578 | 83,406 | 18,606 | 163,819 |
Shares redeemed | (80,577) | (684,774) | (107,487) | (952,644) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | 15,354 | $174,907 | 41,891 | $381,749 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (3,663,676) | $(24,543,826) | 8,912,228 | $79,797,798 |
Short-Term | Long-Term | Total |
$— | $81,082,257 | $81,082,257 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
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 | $58,991 |
Class C Shares | 204,758 |
TOTAL | $263,749 |
Purchases | $156,033,636 |
Sales | $168,564,081 |
Beginning Account Value 12/1/2019 | Ending Account Value 5/31/2020 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $977.30 | $4.65 |
Class B Shares | $1,000 | $972.30 | $8.48 |
Class C Shares | $1,000 | $972.40 | $8.38 |
Class F Shares | $1,000 | $977.20 | $4.60 |
Institutional Shares | $1,000 | $977.60 | $3.07 |
Class R6 Shares | $1,000 | $977.90 | $3.02 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,020.30 | $4.75 |
Class B Shares | $1,000 | $1,016.40 | $8.67 |
Class C Shares | $1,000 | $1,016.50 | $8.57 |
Class F Shares | $1,000 | $1,020.40 | $4.70 |
Institutional Shares | $1,000 | $1,021.90 | $3.13 |
Class R6 Shares | $1,000 | $1,022.00 | $3.08 |
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 | 0.94% |
Class B Shares | 1.72% |
Class C Shares | 1.70% |
Class F Shares | 0.93% |
Institutional Shares | 0.62% |
Class R6 Shares | 0.61% |
■ | the liquidity risk framework used to assess, manage, and periodically review each Fund’s liquidity risk and the results of this assessment, including a review of the Funds’ access to other available funding sources such as the Funds’ interfund lending facility, redemptions in-kind and committed lines of credit and confirmation that the Fund did not have to access any of these alternative funding sources during the Period; |
■ | the periodic classifications of the Fund’s investments into one of four liquidity categories and the methodologies and inputs used to classify the investments, including the Fund’s reasonably anticipated trade size; |
■ | the analysis received from a third-party liquidity assessment vendor that is taken into account in the process of determining the liquidity classifications of the Fund’s investments and the results of an evaluation of the services performed by the vendor in support of this process; |
■ | the fact that the Fund invested primarily in highly liquid investments during the Period and, therefore, was not required to establish, and has not established, an HLIM and the procedures for monitoring the status of the Fund as investing primarily in highly liquid investments; |
■ | the fact that the Fund invested no more than 15% of its assets in illiquid investments during the Period and the procedures for monitoring this limit; and |
■ | liquidity events during the Period, including the impact on liquidity caused by extended non-U.S. market closures and the market disruptions resulting from the novel coronavirus outbreak, and the fact that there were no specific liquidity events during the Period that materially affected the Fund’s liquidity risk. |
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Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31417P601
CUSIP 31417P700
CUSIP 31417P809
CUSIP 31417P841
CUSIP 31417P833
![](https://capedge.com/proxy/N-CSRS/0001623632-20-001361/fscbug_small.jpg)
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 registrant’s most recent fiscal half-year (the registrant’s second fiscal half-year in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies |
Not Applicable
Item 13. | Exhibits |
(a)(1) Code of Ethics- Not Applicable to this Report.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Federated Hermes Fixed Income Securities, Inc.
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date July 27, 2020
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 27, 2020
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date July 27, 2020