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, Pennsylvania 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: 09/30/23
Date of Reporting Period: 09/30/23
Item 1. | Reports to Stockholders |
Share Class | Ticker | A | FMUUX | Institutional | FMUSX | R6 | FMULX |
Federated Hermes Municipal Ultrashort Fund
A Portfolio of Federated Hermes Fixed Income Securities, Inc.
1 Year | 5 Years | 10 Years | |
Class A Shares | 3.02% | 0.91% | 0.63% |
Institutional Shares | 3.07% | 1.13% | 0.97% |
R6 Shares4 | 3.20% | 1.15% | 0.98% |
B1MBI | 2.29% | 1.04% | 0.88% |
LSMDFA | 2.43% | 0.75% | 0.70% |
Blended Index | 2.49% | 0.99% | 0.74% |
Sector Composition | Percentage of Total Net Assets |
Industrial Development Bond/Pollution Control Revenue | 23.2% |
Prepaid Gas Utility | 12.1% |
Hospital | 10.3% |
Multi-Family Housing | 9.8% |
General Obligation—Local | 9.2% |
Electric & Gas | 7.2% |
Higher Education | 4.4% |
Toll Road | 3.2% |
Water & Sewer | 2.6% |
General Obligation—State | 1.4% |
Other² | 17.0% |
Other Assets and Liabilities—Net3 | (0.4%) |
TOTAL | 100% |
1 | Sector classifications, and the assignment of holdings to such sectors, are based upon the economic sector and/or revenue source of the underlying obligor, as determined by the Fund’s Adviser. For securities that have been enhanced by a third party guarantor, such as bond insurers and banks, sector classifications are based upon the economic sector and/or revenue source of the underlying obligor, as determined by the Fund’s Adviser. IDB/PCR contains total corporate exposure in multiple corporate sectors for Fund diversification. |
2 | For purposes of this table, sector classifications constitute 83.4% of the Fund’s total net assets. Remaining sectors have been aggregated under the designation “Other.” |
3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Principal Amount | Value | ||
MUNICIPAL BONDS— 72.8% | |||
Alabama— 8.1% | |||
$ 5,000,000 | Black Belt Energy Gas District, AL, Gas Prepay Revenue Bonds Project No. 4 (Series 2019A-1), (Morgan Stanley GTD), 4.000%, Mandatory Tender 12/1/2025 | $ 4,908,689 | |
1,000,000 | Black Belt Energy Gas District, AL, Gas Revenue Bonds (Series 2022B-1), (Goldman Sachs Group, Inc. GTD), 4.000%, Mandatory Tender 10/1/2027 | 962,564 | |
25,500,000 | 1 | Black Belt Energy Gas District, AL, Gas Revenue Bonds Project No.7 (Series 2021C-2) FRNs, (Goldman Sachs Group, Inc. GTD), 4.330% (SIFMA 7-day +0.350%), Mandatory Tender 12/1/2026 | 24,826,267 |
25,000,000 | Mobile, AL IDB (Alabama Power Co.), PCRB (Series 2007B) Weekly, 3.866%, Mandatory Tender 6/2/2026 | 24,663,585 | |
3,650,000 | Selma, AL IDB (International Paper Co.), Gulf Opportunity Zone Revenue Refunding Bonds (Series 2019A), 2.000%, Mandatory Tender 10/1/2024 | 3,565,665 | |
5,250,000 | Selma, AL IDB (International Paper Co.), Gulf Opportunity Zone Revenue Refunding Bonds (Series 2020A), 1.375%, Mandatory Tender 6/16/2025 | 4,992,086 | |
30,000,000 | 1 | Southeast Alabama Gas Supply District, Gas Supply Revenue Bonds Project No. 2 (Series 2018B) FRNs, (Morgan Stanley GTD), 4.498% (1-month USLIBOR x 0.67 +0.850%), Mandatory Tender 6/1/2024 | 29,991,318 |
TOTAL | 93,910,174 | ||
Arizona— 1.6% | |||
630,000 | 1 | Arizona Health Facilities Authority (Banner Health), (Series 2015B) FRNs, (United States Treasury PRF 11/4/2025@100), 4.230% (SIFMA 7-day +0.250%), 1/1/2046 | 630,000 |
3,870,000 | 1 | Arizona Health Facilities Authority (Banner Health), (Series 2015B) FRNs, 4.230% (SIFMA 7-day +0.250%), Mandatory Tender 11/4/2026 | 3,799,795 |
1,000,000 | Coconino County, AZ Pollution Control Corp. (Nevada Power Co.), Pollution Control Refunding Revenue Bonds (Series 2017B), 3.750%, Mandatory Tender 3/31/2026 | 984,356 | |
8,000,000 | Maricopa County, AZ, IDA (Banner Health), Revenue Bonds (Series 2023A-1), 5.000%, Mandatory Tender 5/15/2026 | 8,173,637 | |
5,000,000 | Phoenix, AZ IDA (Republic Services, Inc.), (Series 2013), 4.125%, Mandatory Tender 11/1/2023 | 4,997,635 | |
TOTAL | 18,585,423 | ||
Arkansas— 0.3% | |||
3,895,000 | Arkansas State, Federal Highway Grant and Tax Revenue Bonds (Series 2012), 3.000%, 4/1/2024 | 3,868,554 | |
California— 6.0% | |||
7,250,000 | 1 | Bay Area Toll Authority, CA, San Francisco Bay Area Toll Bridge Revenue Bonds (Series 2021B) FRNs, 4.260% (SIFMA 7-day +0.280%), Mandatory Tender 4/1/2024 | 7,221,774 |
Principal Amount | Value | ||
MUNICIPAL BONDS— continued | |||
California— continued | |||
$ 9,000,000 | 1 | Bay Area Toll Authority, CA, San Francisco Bay Area Toll Bridge Revenue Bonds (Series 2021C) FRNs, 4.430% (SIFMA 7-day +0.450%), Mandatory Tender 4/1/2026 | $ 8,801,354 |
7,000,000 | 1 | Bay Area Toll Authority, CA, San Francisco Bay Area Toll Bridge Revenue Bonds (SIFMA Index Rate Bonds Series 2021D) FRNs, 4.280% (SIFMA 7-day +0.300%), Mandatory Tender 4/1/2027 | 6,844,558 |
7,000,000 | 1 | California Infrastructure & Economic Development Bank (California Academy of Sciences), Revenue Bonds (Series 2018D) FRNs, 4.330% (SIFMA 7-day +0.350%), Mandatory Tender 8/1/2024 | 6,933,520 |
6,750,000 | 1 | California Infrastructure & Economic Development Bank (Los Angeles County Museum of Art), Refunding Revenue Bonds (Series 2021B) FRNs, 4.680% (SIFMA 7-day +0.700%), Mandatory Tender 6/1/2026 | 6,560,534 |
27,500,000 | California PCFA (Republic Services, Inc.), (Series 2023), 4.250%, Mandatory Tender 2/15/2024 | 27,332,184 | |
2,000,000 | 2 | California Public Finance Authority (Kendal at Sonoma), Enso Village TEMPS-50 Senior Living Revenue Refunding Bonds (Series B-3), 2.125%, 11/15/2027 | 1,916,164 |
2,000,000 | Western Placer, CA Unified School District, Community Facilities District No. 1 2020 BANs, 2.000%, 6/1/2025 | 1,905,808 | |
2,730,000 | Western Placer, CA Unified School District, Community Facilities District No.2 2020 BANs, 2.000%, 6/1/2025 | 2,593,110 | |
TOTAL | 70,109,006 | ||
Colorado— 1.3% | |||
5,000,000 | 1 | Colorado School of Mines Board of Trustees (Colorado School of Mines, CO), Institutional Enterprise Revenue Refunding Bonds (Series 2022D) FRNs, 4.850% (SIFMA 7-day +0.870%), 12/1/2025 | 5,000,524 |
6,000,000 | 1 | Colorado State Health Facilities Authority (Intermountain Healthcare Obligated Group), Revenue Bonds (Series 2022D) FRNs, 4.530% (SIFMA 7-day +0.550%), Mandatory Tender 8/17/2026 | 5,949,393 |
4,000,000 | 1 | E-470 Public Highway Authority, CO, Senior Revenue SOFR Index Term Rate Bonds (Series 2021B) FRNs, 3.908% (SOFR x 0.67 +0.350%), Mandatory Tender 9/1/2024 | 3,985,169 |
TOTAL | 14,935,086 | ||
Connecticut— 0.7% | |||
3,000,000 | Connecticut State Health & Educational Facilities (Yale University), Revenue Bonds (Series 2017C-2), 2.800%, Mandatory Tender 2/3/2026 | 2,892,277 | |
4,000,000 | Connecticut State Health & Educational Facilities (Yale University), Revenue Bonds (Series X-2), 0.250%, Mandatory Tender 2/9/2024 | 3,939,383 | |
960,000 | Connecticut State HFA, Housing Mortgage Finance Program Bonds (Series 2020D-3), 0.500%, Mandatory Tender 11/15/2023 | 956,549 | |
TOTAL | 7,788,209 | ||
Florida— 1.6% | |||
3,500,000 | Broward County, FL HFA (St. Joseph Manor II, LLLP), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury COL), 3.500%, Mandatory Tender 4/1/2026 | 3,411,949 |
Principal Amount | Value | ||
MUNICIPAL BONDS— continued | |||
Florida— continued | |||
$ 775,000 | Escambia County, FL (International Paper Co.), Environmental Improvement Revenue Refunding Bonds (Series 2019B), 2.000%, Mandatory Tender 10/1/2024 | $ 757,093 | |
2,700,000 | Florida Development Finance Corp. (Lakeland Regional Health System), Healthcare Facilities Revenue Refunding Bonds (Series 2021), 5.000%, 11/15/2023 | 2,701,228 | |
11,500,000 | 1 | Miami-Dade County, FL IDA (Waste Management, Inc.), Solid Waste Disposal Revenue Bonds (Series 2018B) FRNs, 4.355% (SIFMA 7-day +0.375%), Mandatory Tender 7/1/2024 | 11,333,646 |
TOTAL | 18,203,916 | ||
Georgia— 2.4% | |||
6,700,000 | Burke County, GA Development Authority (Georgia Power Co.), Vogtle Project PCRB (Fifth Series 1994), 2.150%, Mandatory Tender 6/13/2024 | 6,541,553 | |
3,000,000 | Burke County, GA Development Authority (Georgia Power Co.), Vogtle Project PCRB (First Series 1996), 3.875%, Mandatory Tender 3/6/2026 | 2,936,058 | |
5,650,000 | Burke County, GA Development Authority (Georgia Power Co.), Vogtle Project PCRB (First Series 2012), 2.875%, Mandatory Tender 8/19/2025 | 5,430,178 | |
6,495,000 | Main Street Natural Gas, Inc., GA, Gas Supply Revenue Bonds (Series 2021A), (Royal Bank of Canada GTD), 4.000%, Mandatory Tender 9/1/2027 | 6,323,461 | |
1,000,000 | Main Street Natural Gas, Inc., GA, Gas Supply Revenue Bonds (Series 2022A), (Citigroup, Inc. GTD), 4.000%, 12/1/2025 | 979,612 | |
3,500,000 | Monroe County, GA Development Authority (Georgia Power Co.), Scherer Project PCRB (First Series 2013), 3.875%, Mandatory Tender 3/6/2026 | 3,425,401 | |
1,750,000 | Monroe County, GA Development Authority (Georgia Power Co.), Scherer Project PCRB (Second Series 2009), 3.875%, Mandatory Tender 3/6/2026 | 1,712,700 | |
TOTAL | 27,348,963 | ||
Illinois— 1.7% | |||
2,000,000 | Chicago, IL O’Hare International Airport, General Airport Senior Lien Revenue Refunding Bonds (Series 2022C), 5.000%, 1/1/2024 | 2,001,840 | |
2,000,000 | Chicago, IL O’Hare International Airport, General Airport Senior Lien Revenue Refunding Bonds (Series 2022C), 5.000%, 1/1/2025 | 2,013,785 | |
3,500,000 | Chicago, IL O’Hare International Airport, General Airport Senior Lien Revenue Refunding Bonds (Series 2022C), 5.000%, 1/1/2026 | 3,534,089 | |
3,000,000 | Illinois State, UT GO Bonds (Series 2023D), 5.000%, 7/1/2025 | 3,040,781 | |
3,500,000 | Illinois State, UT GO Bonds (Series 2023D), 5.000%, 7/1/2026 | 3,582,498 | |
5,000,000 | Illinois State, UT GO Bonds (Series 2023D), 5.000%, 7/1/2027 | 5,160,558 | |
TOTAL | 19,333,551 | ||
Indiana— 1.6% | |||
6,475,000 | 1 | Indiana State Finance Authority (Deaconess Health System), Revenue Bonds (Series 2021B) FRNs, 4.280% (SIFMA 7-day +0.300%), Mandatory Tender 3/1/2027 | 6,259,160 |
Principal Amount | Value | ||
MUNICIPAL BONDS— continued | |||
Indiana— continued | |||
$10,000,000 | Indiana State Finance Authority (Republic Services, Inc.), (Series 2010A), 4.300%, Mandatory Tender 12/1/2023 | $ 9,993,306 | |
2,000,000 | Indiana State Finance Authority (Republic Services, Inc.), (Series 2012), 4.300%, Optional Tender 12/1/2023 | 1,998,661 | |
TOTAL | 18,251,127 | ||
Iowa— 0.5% | |||
3,000,000 | Iowa Finance Authority (Gevo NW Iowa RNG, LLC), Solid Waste Facility Revenue Bonds Renewable Gas Project (Series 2021), (Citibank N.A., New York LOC), 1.500%, Mandatory Tender 4/1/2024 | 2,939,633 | |
3,500,000 | 1 | Iowa Finance Authority (Lifespace Communities, Inc.), Revenue Bonds (Series 2021B) FRNs, 4.274% (SOFR x 0.70 +0.550%), Mandatory Tender 5/15/2026 | 3,195,159 |
TOTAL | 6,134,792 | ||
Kentucky— 2.4% | |||
7,795,000 | Kentucky Housing Corp. (Beecher IV, LLC), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury COL), 5.000%, Mandatory Tender 9/1/2026 | 7,875,896 | |
3,500,000 | Kentucky Housing Corp. (Cambridge Preservation LP), Multifamily Housing Revenue Bonds (Series 2021), (United States Treasury GTD), 0.300%, Mandatory Tender 2/1/2024 | 3,443,010 | |
13,000,000 | Public Energy Authority of Kentucky, Gas Supply Revenue Bonds (Series 2018B), (BP PLC GTD), 4.000%, Mandatory Tender 1/1/2025 | 12,878,398 | |
3,250,000 | Rural Water Financing Agency, KY, Public Projects Construction Notes (Series 2023A), 3.900%, 11/1/2025 | 3,178,959 | |
TOTAL | 27,376,263 | ||
Louisiana— 1.5% | |||
3,000,000 | Louisiana Local Government Environmental Facilities Community Development Authority (East Baton Rouge Sewerage Commission), Subordinate Lien Multi-Modal Revenue Refunding Bonds (Series 2020B), 0.875%, Mandatory Tender 2/1/2025 | 2,849,393 | |
8,885,000 | St. John the Baptist Parish, LA (Marathon Oil Corp.), Revenue Refunding Bonds (Series 2017B-1), 2.125%, Mandatory Tender 7/1/2024 | 8,721,787 | |
5,500,000 | St. John the Baptist Parish, LA (Marathon Oil Corp.), Revenue Refunding Bonds (Series 2019 A-1), 4.050%, Mandatory Tender 7/1/2026 | 5,400,310 | |
TOTAL | 16,971,490 | ||
Massachusetts— 0.3% | |||
3,250,000 | 1 | Massachusetts Development Finance Agency (Mass General Brigham), Revenue Bonds (Series 2019T-1) FRNs, 4.580% (SIFMA 7-day +0.600%), Mandatory Tender 1/29/2026 | 3,226,158 |
Michigan— 0.4% | |||
2,000,000 | Michigan State Finance Authority (Beaumont Health Spectrum Health System), Hospital Revenue Refunding Bonds (Series 2022A), 5.000%, 4/15/2024 | 2,008,669 |
Principal Amount | Value | ||
MUNICIPAL BONDS— continued | |||
Michigan— continued | |||
$ 3,125,000 | 1 | Michigan State Finance Authority (Beaumont Health Spectrum Health System), Hospital Revenue Refunding Bonds (Series 2022C) FRNs, 4.730% (SIFMA 7-day +0.750%), Mandatory Tender 4/15/2027 | $ 3,064,417 |
TOTAL | 5,073,086 | ||
Minnesota— 0.4% | |||
5,000,000 | Minnesota Rural Water Finance Authority, Public Projects Construction Notes (Series 2022), 2.625%, 12/1/2023 | 4,974,177 | |
Mississippi— 0.3% | |||
2,940,000 | Jackson County, MS, UT GO Water System Bonds (Series 1994), (Chevron Corp. GTD), 3.750%, Mandatory Tender 2/1/2024 | 2,940,000 | |
Nebraska— 0.4% | |||
4,905,000 | 1 | Douglas County, NE (Creighton University, NE), Educational Facilities Revenue Refunding Bonds (Series 2021B) FRNs, 4.510% (SIFMA 7-day +0.530%), Mandatory Tender 9/1/2026 | 4,837,303 |
Nevada— 0.7% | |||
2,000,000 | Clark County, NV (Nevada Power Co.), Pollution Control Refunding Revenue Bonds (Series 2017), 3.750%, Mandatory Tender 3/1/2026 | 1,971,702 | |
7,000,000 | Humboldt County, NV (Idaho Power Co.), PCR Refunding Bonds (Series 2003), 1.450%, 12/1/2024 | 6,702,211 | |
TOTAL | 8,673,913 | ||
New Hampshire— 1.2% | |||
6,500,000 | National Finance Authority, NH (Waste Management, Inc.), (Series 2020 A-3), (Waste Management Holdings, Inc. GTD), 4.250%, Mandatory Tender 12/1/2023 | 6,493,556 | |
1,500,000 | National Finance Authority, NH (Waste Management, Inc.), Solid Waste Disposal Refunding Revenue Bonds (Series 2019A-1), 2.150%, Mandatory Tender 7/1/2024 | 1,474,322 | |
4,000,000 | National Finance Authority, NH (Waste Management, Inc.), Solid Waste Disposal Refunding Revenue Bonds (Series 2019A-3), 2.150%, Mandatory Tender 7/1/2024 | 3,931,527 | |
2,000,000 | National Finance Authority, NH (Waste Management, Inc.), Solid Waste Disposal Refunding Revenue Bonds (Series 2019A-4), 2.150%, Mandatory Tender 7/1/2024 | 1,965,763 | |
TOTAL | 13,865,168 | ||
New Jersey— 2.9% | |||
9,000,000 | Belleville, NJ BANs, 5.000%, 7/10/2024 | 9,034,601 | |
4,238,130 | Haledon, NJ BANs, 4.500%, 9/27/2024 | 4,246,142 | |
6,650,000 | New Jersey EDA (New Jersey State), School Facilities Construction Refunding Bonds (Series 2023RRR), 5.000%, 3/1/2024 | 6,669,089 | |
5,000,000 | New Jersey EDA (New Jersey State), School Facilities Construction Refunding Bonds (Series 2023RRR), 5.000%, 3/1/2025 | 5,058,409 | |
3,100,000 | New Jersey EDA (New Jersey-American Water Co., Inc.), Water Facilities Refunding Revenue Bonds (Series 2020E), 0.850%, 12/1/2025 | 2,764,766 |
Principal Amount | Value | ||
MUNICIPAL BONDS— continued | |||
New Jersey— continued | |||
$ 4,000,000 | New Jersey Housing & Mortgage Finance Agency (New Center City Apartments Urban Renewal, LLC), Multifamily Conduit Revenue Bonds (Series 2023-C), (United States Treasury COL), 5.000%, 6/1/2025 | $ 4,021,390 | |
2,210,000 | New Jersey State Transportation Trust Fund Authority (New Jersey State), Transportation System Bonds (Series 2021A), 5.000%, 6/15/2025 | 2,241,677 | |
TOTAL | 34,036,074 | ||
New Mexico— 2.4% | |||
5,000,000 | Farmington, NM (Public Service Co., NM), Pollution Control Revenue Refunding Bonds San Juan Project (Series 2010C), 1.150%, Mandatory Tender 6/4/2024 | 4,865,790 | |
3,000,000 | New Mexico Mortgage Finance Authority (JLG NM ABQ 2023, LLLP), Mountain View I & II Apartments Project Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury GTD), 5.000%, Mandatory Tender 9/1/2025 | 3,021,912 | |
4,500,000 | New Mexico Mortgage Finance Authority (JLG NM SAF 2023, LLLP), Santa Fe Apartments and Sangre De Cristo Project Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury GTD), 5.000%, Mandatory Tender 6/1/2025 | 4,521,294 | |
3,725,000 | New Mexico Municipal Energy Acquisition Authority, Gas Supply Revenue Refunding and Acquisition Bonds (Series 2019A), (Royal Bank of Canada GTD), 4.000%, 5/1/2025 | 3,692,139 | |
8,035,000 | New Mexico Municipal Energy Acquisition Authority, Gas Supply Revenue Refunding and Acquisition Bonds (Series 2019A), (Royal Bank of Canada GTD), 5.000%, Mandatory Tender 5/1/2025 | 8,039,601 | |
4,000,000 | New Mexico State Hospital Equipment Loan Council (Presbyterian Healthcare Services), Hospital System Revenue Bonds (Series 2019B), 5.000%, Mandatory Tender 8/1/2025 | 4,052,322 | |
TOTAL | 28,193,058 | ||
New York— 5.1% | |||
16,693,774 | Adirondack, NY CSD BANs, 4.500%, 6/27/2024 | 16,725,310 | |
4,485,000 | Carthage, NY CSD BANs, 4.500%, 6/26/2024 | 4,490,516 | |
6,270,000 | Groton CSD, NY BANs, 4.750%, 6/20/2024 | 6,286,407 | |
4,500,000 | Lloyd, NY BANs, 4.250%, 2/9/2024 | 4,494,280 | |
1,500,000 | Mayfield, NY CSD BANs, 4.500%, 6/20/2024 | 1,501,244 | |
6,735,000 | 1 | Metropolitan Transportation Authority, NY (MTA Transportation Revenue), Transportation Revenue Variable Rate Refunding Bonds (Series 2005D-1) FRNs, 3.888% (SOFR x 0.67 +0.330%), Mandatory Tender 4/1/2024 | 6,714,707 |
2,250,000 | New York City, NY, UT GO Bonds (Fiscal 2023 Series C), 5.000%, 8/1/2025 | 2,299,311 | |
1,000,000 | New York Transportation Development Corporation (JFK International Air Terminal LLC), Special Facilities Revenue Bonds (Series 2020C), 5.000%, 12/1/2024 | 1,010,330 | |
8,000,000 | Newburgh, NY BANs, 4.450%, 8/9/2024 | 8,000,650 |
Principal Amount | Value | ||
MUNICIPAL BONDS— continued | |||
New York— continued | |||
$ 5,630,000 | 1 | Triborough Bridge & Tunnel Authority, NY, General Revenue Variable Rate Refunding Bonds (Series 2005B-4A) FRNs, 3.944% (SOFR x 0.67 +0.380%), Mandatory Tender 2/1/2024 | $ 5,605,822 |
2,000,000 | Williamson, NY BANs, 4.250%, 12/20/2023 | 1,999,250 | |
TOTAL | 59,127,827 | ||
North Carolina— 1.9% | |||
4,000,000 | Charlotte-Mecklenburg Hospital Authority, NC (Atrium Health (previously Carolinas HealthCare) System), Variable Rate Health Care Revenue Bonds (Series 2018E), 0.800%, Mandatory Tender 10/31/2025 | 3,648,470 | |
3,500,000 | Charlotte-Mecklenburg Hospital Authority, NC (Atrium Health (previously Carolinas HealthCare) System), Variable Rate Health Care Revenue Bonds (Series 2021B), 5.000%, Mandatory Tender 12/2/2024 | 3,529,903 | |
850,000 | Columbus County, NC Industrial Facilities & PCFA (International Paper Co.), Recovery Zone Facility Revenue Refunding Bonds (Series 2019B), 2.000%, Mandatory Tender 10/1/2024 | 830,360 | |
1,000,000 | Columbus County, NC Industrial Facilities & PCFA (International Paper Co.), Recovery Zone Facility Revenue Refunding Bonds (Series 2020A), 1.375%, Mandatory Tender 6/16/2025 | 950,874 | |
13,635,000 | 1 | University of North Carolina at Chapel Hill, General Revenue Refunding Bonds (Series 2019B) FRNs, 4.208% (SOFR x 0.67 +0.650%), Mandatory Tender 6/1/2025 | 13,564,740 |
TOTAL | 22,524,347 | ||
North Dakota— 0.8% | |||
10,000,000 | Cass County Joint Water Resource District, ND, UT GO Temporary Refunding Improvement Bonds (Series 2021A), 0.480%, 5/1/2024 | 9,672,389 | |
Ohio— 2.0% | |||
4,350,000 | Cuyahoga, OH Metropolitan Housing Authority (Wade Park Apartments), Multifamily Housing Revenue Bonds (Series 2022), (United States Treasury COL), 4.750%, Mandatory Tender 12/1/2025 | 4,345,808 | |
10,390,000 | Lancaster, OH Port Authority, Gas Supply Revenue Refunding Bonds (Series 2019), (Royal Bank of Canada GTD), 5.000%, Mandatory Tender 2/1/2025 | 10,423,918 | |
2,917,000 | Ohio HFA (Riverview San Marco, LLC), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury COL), 5.000%, Mandatory Tender 8/1/2025 | 2,933,222 | |
2,665,000 | Ohio HFA (Thornwood Commons Homes, LLC), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury COL), 5.000%, Mandatory Tender 12/1/2025 | 2,684,650 | |
2,500,000 | Ohio State Hospital Revenue (Cleveland Clinic), Hospital Revenue Bonds (Series 2019C), 2.750%, Mandatory Tender 5/1/2028 | 2,367,647 | |
TOTAL | 22,755,245 | ||
Oregon— 0.3% | |||
3,000,000 | Multnomah County, OR Hospital Facilities Authority (Terwilliger Plaza, Inc.), Parkview Project TEMPS-50 Revenue and Refunding Bonds (Series 2021B-2), 0.950%, 6/1/2027 | 2,600,776 |
Principal Amount | Value | ||
MUNICIPAL BONDS— continued | |||
Oregon— continued | |||
$ 1,000,000 | Multnomah County, OR Hospital Facilities Authority (Terwilliger Plaza, Inc.), Parkview Project TEMPS-65 Revenue and Refunding Bonds (Series 2021B-1), 1.200%, 6/1/2028 | $ 837,396 | |
TOTAL | 3,438,172 | ||
Pennsylvania— 6.5% | |||
5,500,000 | 1 | Allegheny County, PA Higher Education Building Authority (Carnegie Mellon University), Revenue Bonds (Series 2022A) FRNs, 4.007% (SOFR x 0.70 +0.290%), Mandatory Tender 8/1/2027 | 5,383,760 |
2,490,000 | 1 | Bethlehem, PA Area School District Authority, School Revenue Bonds (Series 2021A) FRNs, 3.914% (SOFR x 0.67 +0.350%), Mandatory Tender 11/1/2025 | 2,430,574 |
3,245,000 | 1 | Bethlehem, PA Area School District Authority, School Revenue Bonds (Series 2021B) FRNs, 3.914% (SOFR x 0.67 +0.350%), Mandatory Tender 11/1/2025 | 3,167,556 |
15,000,000 | 1 | Delaware Valley, PA Regional Finance Authority, Local Government Revenue Bonds (Series 2022C) FRNs, 4.048% (SOFR x 0.67 +0.490%), Mandatory Tender 3/1/2027 | 14,522,501 |
9,960,000 | 1 | Lehigh County, PA General Purpose Authority (Muhlenberg College), College Revenue Bonds (Series 2019) FRNs, 4.560% (SIFMA 7-day +0.580%), Mandatory Tender 11/1/2024 | 9,952,671 |
1,200,000 | 1 | North Penn, PA Water Authority, SIFMA Index Rate Water Revenue Refunding Bonds (Series 2019) FRNs, 4.440% (SIFMA 7-day +0.460%), 11/1/2023 | 1,199,852 |
4,000,000 | 1 | Northampton County, PA General Purpose Authority (St. Luke’s University Health Network), Variable Rate Hospital Revenue Bonds (Series 2018B) FRNs, 4.851% (1-month USLIBOR x 0.70 +1.040%), Mandatory Tender 8/15/2024 | 4,000,107 |
10,000,000 | Pennsylvania Economic Development Financing Authority (PPL Electric Utilities Corp.), PCR Refunding Bonds (Series 2008), 0.400%, 10/1/2023 | 10,000,000 | |
4,900,000 | Pennsylvania Economic Development Financing Authority (Waste Management, Inc.), Solid Waste Disposal Revenue Bonds (Series 2017A), 0.580%, Mandatory Tender 8/1/2024 | 4,701,389 | |
9,000,000 | 1 | Pennsylvania Economic Development Financing Authority (Waste Management, Inc.), Solid Waste Disposal Revenue Bonds (Series 2021A) FRNs, 4.380% (SIFMA 7-day +0.400%), Mandatory Tender 6/3/2024 | 8,980,945 |
5,000,000 | 1 | Pennsylvania State Turnpike Commission, Variable Rate Turnpike Revenue Bonds (Series 2018B) FRNs, 4.680% (SIFMA 7-day +0.700%), 12/1/2023 | 5,001,588 |
6,750,000 | 1 | Southcentral PA, General Authority (Wellspan Health Obligated Group), Revenue Bonds (Series 2019A) FRNs, 4.580% (SIFMA 7-day +0.600%), Mandatory Tender 6/1/2024 | 6,746,528 |
TOTAL | 76,087,471 | ||
South Carolina— 2.1% | |||
25,000,000 | 1 | Patriots Energy Group Financing Agency, Gas Supply Revenue Bonds (Series 2018B) FRNs, (Royal Bank of Canada GTD), 4.508% (1-month USLIBOR x 0.67 +0.860%), Mandatory Tender 2/1/2024 | 24,970,570 |
Principal Amount | Value | ||
MUNICIPAL BONDS— continued | |||
Tennessee— 1.2% | |||
$ 3,500,000 | Knoxville, TN Community Development Corp (Austin Homes 1B), (Series 2021), 4.250%, 10/1/2024 | $ 3,485,113 | |
3,000,000 | Metropolitan Government of Nashville & Davidson County, TN Health & Educational Facilities Board (301 Ben Allen LP), Multifamily Housing Revenue Bonds (Series 2022B), (United States Treasury COL), 3.850%, Mandatory Tender 2/1/2026 | 2,955,502 | |
7,200,000 | Tennergy Corp., TN Gas Revenue, Gas Supply Revenue Bonds (Series 2019A), (Royal Bank of Canada GTD), 5.000%, Mandatory Tender 10/1/2024 | 7,218,524 | |
TOTAL | 13,659,139 | ||
Texas— 7.8% | |||
3,400,000 | Austin, TX Airport System, Revenue Refunding Bonds (Series 2019), 5.000%, 11/15/2024 | 3,420,784 | |
4,000,000 | Clear Creek, TX Independent School District, Variable Rate UT GO School Building Bonds (Series 2013B), (Texas Permanent School Fund Guarantee Program GTD), 0.280%, Mandatory Tender 8/15/2024 | 3,860,893 | |
3,500,000 | Denton County, TX Housing Finance Authority (THF Pathway on Woodrow, LP), Multifamily Housing Revenue Bonds (Series 2022), (United States Treasury COL), 5.000%, Mandatory Tender 2/1/2025 | 3,523,766 | |
1,760,000 | Eanes, TX Independent School District, Variable Rate UT School Building Bonds (Series 2019B), (Texas Permanent School Fund Guarantee Program GTD), 1.750%, Mandatory Tender 8/1/2025 | 1,685,295 | |
2,705,000 | Eanes, TX Independent School District, Variable Rate UT School Building Bonds (Series 2019B), (United States Treasury PRF 8/1/2024@100), 1.750%, Mandatory Tender 8/1/2024 | 2,655,000 | |
3,840,000 | Fort Bend, TX Independent School District, Variable Rate UT School Building and Refunding Bonds (Series 2020B), (Texas Permanent School Fund Guarantee Program GTD), 0.875%, Mandatory Tender 8/1/2025 | 3,603,736 | |
5,000,000 | 1 | Harris County, TX Cultural Education Facilities Finance Corp. (Baylor College of Medicine), Medical Facilities Mortgage Revenue Refunding Bonds (Series 2019A) FRNs, 4.440% (SOFR x 0.70 +0.730%), Mandatory Tender 7/1/2024 | 4,999,640 |
5,000,000 | 1 | Harris County, TX Cultural Education Facilities Finance Corp. (Memorial Hermann Health System), Hospital Revenue Bonds (Series 2019C-2) FRNs, 4.550% (SIFMA 7-day +0.570%), Mandatory Tender 12/4/2024 | 5,001,707 |
2,750,000 | 1 | Harris County, TX Cultural Education Facilities Finance Corp. (Memorial Hermann Health System), Hospital Revenue Bonds (Series 2022C) FRNs, 4.830% (SIFMA 7-day +0.850%), Mandatory Tender 12/1/2026 | 2,747,250 |
4,000,000 | Harris County, TX Cultural Education Facilities Finance Corp. (Texas Medical Center), Revenue Bonds (Series 2020A), 0.900%, Mandatory Tender 5/15/2025 | 3,749,388 | |
2,450,000 | Houston, TX Housing Finance Corp. (Temenos Place Apartments), (Series 2021), 4.080%, Mandatory Tender 2/1/2024 | 2,443,866 | |
5,750,000 | Mission, TX Economic Development Corp. (Waste Management, Inc.), (Series 2023A), (Waste Management Holdings, Inc. GTD), 4.250%, Mandatory Tender 6/3/2024 | 5,734,326 |
Principal Amount | Value | ||
MUNICIPAL BONDS— continued | |||
Texas— continued | |||
$14,985,000 | Ponder, TX Independent School District, Variable Rate UT School Building Bonds (Series 2021), (Texas Permanent School Fund Guarantee Program GTD), 0.750%, Mandatory Tender 8/15/2024 | $ 14,523,044 | |
3,370,000 | 1 | San Antonio, TX Electric & Gas System, Junior Lien Revenue Refunding Bonds (Series 2022) FRNs, 4.850% (SIFMA 7-day +0.870%), Mandatory Tender 12/1/2025 | 3,363,340 |
2,250,000 | Texas Municipal Gas Acquisition & Supply Corp. III, Gas Supply Revenue Refunding Bonds (Series 2021), (Macquarie Group Ltd. GTD), 5.000%, 12/15/2023 | 2,249,146 | |
2,500,000 | Texas Municipal Gas Acquisition & Supply Corp. III, Gas Supply Revenue Refunding Bonds (Series 2021), (Macquarie Group Ltd. GTD), 5.000%, 12/15/2026 | 2,490,467 | |
2,126,000 | Texas State Affordable Housing Corp. (Eden Court Senior Housing LP), (Series 2023), (United States Treasury GTD), 5.000%, Mandatory Tender 4/1/2026 | 2,149,394 | |
11,000,000 | Texas State Department of Housing & Community Affairs (THF Park at Kirkstall Apartments, LP), Multifamily Housing Revenue Bonds (Series 2021), 0.650%, Mandatory Tender 12/1/2024 | 10,422,317 | |
4,009,000 | The Texas Home Collaborative (1518 Apartments Ltd), Multifamily Housing Revenue Bonds (Series 2023), 5.000%, Mandatory Tender 10/1/2026 | 4,078,344 | |
8,000,000 | Trinity River, TX Public Facilities Authority (Cowan Place Apartments), (Series 2021), (United States Treasury COL), 4.400%, Mandatory Tender 4/1/2024 | 7,990,539 | |
TOTAL | 90,692,242 | ||
Virginia— 1.7% | |||
5,500,000 | Norfolk, VA Redevelopment and Housing Authority (Standard Braywood Manor Venture LP), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury COL), 5.000%, Mandatory Tender 5/1/2026 | 5,546,170 | |
3,720,000 | Northampton County and Towns, VA Economic Development Authority (Myrtle Landing Renewal LLC), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury COL), 4.500%, Mandatory Tender 4/1/2025 | 3,699,767 | |
5,500,000 | Virginia Peninsula Port Authority (Dominion Terminal Associates), Coal Terminal Revenue Refunding Bonds (Series 2003), 3.800%, Mandatory Tender 10/1/2024 | 5,447,837 | |
5,000,000 | Wise County, VA IDA (Virginia Electric & Power Co.), Solid Waste and Sewage Disposal Revenue Bonds (Series 2009A), 0.750%, Mandatory Tender 9/2/2025 | 4,566,552 | |
TOTAL | 19,260,326 | ||
Washington— 1.8% | |||
4,000,000 | King County, WA Housing Authority, Affordable Housing Revenue Bonds Kirkland Heights Project (Series 2023A-1), 5.000%, 1/1/2028 | 4,051,635 | |
5,000,000 | 1 | King County, WA Sewer System, Junior Lien Revenue Bonds (Series 2021A) FRNs, 4.210% (SIFMA 7-day +0.230%), Mandatory Tender 1/1/2027 | 4,883,795 |
Principal Amount | Value | ||
MUNICIPAL BONDS— continued | |||
Washington— continued | |||
$ 9,250,000 | 1 | Seattle, WA Municipal Light & Power, Refunding Revenue Bonds (Series 2021B) FRNs, 4.230% (SIFMA 7-day +0.250%), Mandatory Tender 11/1/2026 | $ 9,069,853 |
2,500,000 | Washington State Health Care Facilities Authority (CommonSpirit Health), Revenue Bonds (Series 2019B-1), 5.000%, Mandatory Tender 8/1/2024 | 2,502,567 | |
TOTAL | 20,507,850 | ||
West Virginia— 0.4% | |||
5,500,000 | West Virginia EDA Solid Waste Disposal Facilities (Appalachian Power Co.), Revenue Bonds (Series 2011A), 1.000%, Mandatory Tender 9/1/2025 | 5,078,336 | |
Wisconsin— 2.5% | |||
7,500,000 | Public Finance Authority (Duke Energy Progress LLC), PCR Refunding Bonds (Series 2022A-1), 3.300%, Mandatory Tender 10/1/2026 | 7,323,504 | |
4,500,000 | Wisconsin Health & Educational Facilities Authority (Advocate Aurora Health), Revenue Bonds (Series 2018B-2), 5.000%, Mandatory Tender 6/24/2026 | 4,592,337 | |
17,535,000 | Wisconsin State Public Finance Authority (Waste Management, Inc.), (Series A-2), (Waste Management Holdings, Inc. GTD), 4.125%, Mandatory Tender 11/1/2023 | 17,526,014 | |
TOTAL | 29,441,855 | ||
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $860,665,813) | 845,851,260 | ||
1 | SHORT-TERM MUNICIPALS— 27.6% | ||
Alabama— 0.9% | |||
10,000,000 | Decatur, AL IDB (Nucor Steel Decatur LLC), (Series 2003-A) Weekly VRDNs, (Nucor Corp. GTD), 4.300%, 10/4/2023 | 10,000,000 | |
Arizona— 0.1% | |||
1,780,000 | Arizona State IDA (Casa Azure), 3a-7 (Series DBE-8113) Daily VRDNs, (Deutsche Bank AG LIQ)/(Deutsche Bank AG LOC), 4.850%, 10/2/2023 | 1,780,000 | |
California— 3.5% | |||
4,100,000 | Los Angeles, CA Community Redevelopment Agency (DWF V Hollywood & Vine, LP), Mizuho 3a-7 (Series 2022-MIZ9089) Daily VRDNs, (Federal Home Loan Mortgage Corp. GTD)/(Mizuho Bank Ltd. LIQ), 5.250%, 10/2/2023 | 4,100,000 | |
8,800,000 | Los Angeles, CA Multifamily Housing Revenue Bonds (CORE Related/ GALA Rentals, LP), SPEARs 3a7 (Series DBE-8081) Weekly VRDNs, (Deutsche Bank AG LIQ)/(Deutsche Bank AG LOC), 4.430%, 10/5/2023 | 8,800,000 | |
17,300,000 | Nuveen California AMT-Free Quality Municipal Income Fund, (Series A) MuniFund Preferred Shares Weekly VRDPs, 4.430%, 10/2/2023 | 17,300,000 | |
10,000,000 | Nuveen California Quality Municipal Income Fund, RIB Floater Trust (Series 2022-FR-RI-005) (Series 2 Preferred Shares) VRENs, (Barclays Bank plc LIQ)/(Barclays Bank plc LOC), 4.380%, 10/5/2023 | 10,000,000 | |
TOTAL | 40,200,000 |
Principal Amount | Value | ||
1 | SHORT-TERM MUNICIPALS— continued | ||
Florida— 0.2% | |||
$ 2,000,000 | Miami-Dade County, FL HFA (Cordoba FL TC, LP), Mizuho 3a-7 (2021-MIZ9072) VRENs, (Mizuho Bank Ltd. GTD)/(Mizuho Bank Ltd. LIQ), 4.200%, 10/5/2023 | $ 2,000,000 | |
Georgia— 0.1% | |||
950,000 | Burke County, GA Development Authority (Georgia Power Co.), (Series 2008) Daily VRDNs, 5.060%, 10/2/2023 | 950,000 | |
Indiana— 1.0% | |||
11,600,000 | Indiana State Finance Authority Environmental (ArcelorMittal SA), (Series 2006) Weekly VRDNs, (Banco Bilbao Vizcaya Argentaria SA LOC), 4.500%, 10/4/2023 | 11,600,000 | |
Kentucky— 2.0% | |||
11,895,000 | Meade County, KY Industrial Building Revenue Authority (Nucor Corp.), (Series 2021A-1) Daily VRDNs, 5.220%, 10/2/2023 | 11,895,000 | |
12,000,000 | Meade County, KY Industrial Building Revenue Authority (Nucor Corp.), (Series 2021B-1) Daily VRDNs, 4.950%, 10/2/2023 | 12,000,000 | |
TOTAL | 23,895,000 | ||
Louisiana— 0.2% | |||
2,995,000 | Calcasieu Parish, LA Public Trust Authority (Le Jolliet LP), SPEARs 3a-7 (Series DBE-8060) Daily VRDNs, (Deutsche Bank AG LIQ)/(Deutsche Bank AG LOC), 4.840%, 10/2/2023 | 2,995,000 | |
Multi State— 7.4% | |||
18,100,000 | Invesco Municipal Opportunity Trust, PUTTERs 3a-7 (VMTP 5029) Daily VRDNs, (JPMorgan Chase Bank, N.A. LIQ), 5.300%, 10/2/2023 | 18,100,000 | |
21,000,000 | Nuveen AMT-Free Municipal Credit Income Fund, (Series B) MuniFund Preferred Shares Weekly VRDPs, 4.430%, 10/2/2023 | 21,000,000 | |
13,300,000 | Nuveen AMT-Free Municipal Credit Income Fund, (Series C) MuniFund Preferred Shares Weekly VRDPs, 4.430%, 10/2/2023 | 13,300,000 | |
34,275,000 | Nuveen AMT-Free Quality Municipal Income Fund, (Series D) MuniFund Preferred Shares Weekly VRDPs, 4.430%, 10/2/2023 | 34,275,000 | |
TOTAL | 86,675,000 | ||
New York— 0.9% | |||
10,000,000 | New York State HFA (42nd and 10th Street Associates LLC), 3a-7 High Grade Trust (Series 2022-007) VRENs, (Barclays Bank plc LIQ)/(Barclays Bank plc LOC), 4.430%, 10/5/2023 | 10,000,000 | |
Ohio— 1.1% | |||
8,500,000 | Ohio State Hospital Revenue (University Hospitals Health System, Inc.), (Series B) VRENs, 4.400%, 10/2/2023 | 8,500,000 | |
4,000,000 | Ohio State Hospital Revenue (University Hospitals Health System, Inc.), (Series C) VRENs, 4.450%, 10/2/2023 | 4,000,000 | |
500,000 | Ohio State Hospital Revenue (University Hospitals Health System, Inc.), Hospital Revenue Bonds (Series 2014B) VRENs, 4.400%, 10/5/2023 | 500,000 | |
TOTAL | 13,000,000 | ||
Oklahoma— 0.8% | |||
8,950,000 | Oklahoma Development Finance Authority (INTEGRIS Obligated Group), (Series 2020B) Weekly VRENs, 4.540%, 10/2/2023 | 8,950,000 |
Principal Amount | Value | ||
1 | SHORT-TERM MUNICIPALS— continued | ||
Pennsylvania— 0.6% | |||
$ 6,870,000 | Central Bradford Progress Authority, PA (Guthrie Healthcare System, PA), (Series 2021D) Weekly VRENs, 4.560%, 10/5/2023 | $ 6,870,000 | |
Texas— 7.5% | |||
38,500,000 | Port of Port Arthur Navigation District of Jefferson County, TX (Motiva Enterprises LLC), (Series 2002) Weekly VRDNs, 4.480%, 10/4/2023 | 38,500,000 | |
38,400,000 | Port of Port Arthur Navigation District of Jefferson County, TX (Motiva Enterprises LLC), (Series 2010D) Weekly VRDNs, 4.400%, 10/4/2023 | 38,400,000 | |
10,175,000 | Port of Port Arthur Navigation District of Jefferson County, TX (Motiva Enterprises LLC), (Series 2010E) Weekly VRDNs, 4.430%, 10/4/2023 | 10,175,000 | |
TOTAL | 87,075,000 | ||
Wisconsin— 1.3% | |||
15,000,000 | Wisconsin Health & Educational Facilities Authority (Marshfield Clinic), (Series 2022A) Weekly VRENs, 5.360%, 10/5/2023 | 15,000,000 | |
TOTAL SHORT-TERM MUNICIPALS (IDENTIFIED COST $320,990,000) | 320,990,000 | ||
TOTAL INVESTMENT IN SECURITIES—100.4% (IDENTIFIED COST $1,181,655,813)3 | 1,166,841,260 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.4%)4 | (4,406,747) | ||
TOTAL NET ASSETS—100% | $1,162,434,513 |
1 | Current rate and current maturity or next reset date shown for floating rate notes and variable rate notes/demand instruments. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
2 | Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or availing of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At September 30, 2023, this restricted security amounted to $1,916,164, which represented 0.2% of total net assets. |
3 | The cost of investments for federal tax purposes amounts to $1,181,633,773. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
The following acronym(s) are used throughout this portfolio: | ||
BANs | —Bond Anticipation Notes | |
COL | —Collateralized | |
CSD | —Central School District | |
EDA | —Economic Development Authority | |
FRNs | —Floating Rate Notes | |
GO | —General Obligation | |
GTD | —Guaranteed | |
HFA | —Housing Finance Authority | |
IDA | —Industrial Development Authority | |
IDB | —Industrial Development Bond | |
LIBOR | —London Interbank Offered Rate | |
LIQ | —Liquidity Agreement | |
LOC | —Letter of Credit | |
LP | —Limited Partnership | |
PCFA | —Pollution Control Financing Authority | |
PCR | —Pollution Control Revenue | |
PCRB | —Pollution Control Revenue Bond(s) | |
PRF | —Pre-refunded | |
PUTTERs | —Puttable Tax-Exempt Receipts | |
SIFMA | —Securities Industry and Financial Markets Association | |
SOFR | —Secured Overnight Financing Rate | |
SPEARs | —Short Puttable Exempt Adjustable Receipts | |
TEMPS | —Tax Exempt Mandatory Paydown Securities | |
UT | —Unlimited Tax | |
VMTP | —Variable Municipal Term Preferred | |
VRDNs | —Variable Rate Demand Notes | |
VRDPs | —Variable Rate Demand Preferreds | |
VRENs | —Variable Rate Extendible Notes |
Year Ended September 30, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $9.84 | $10.04 | $10.03 | $10.01 | $9.98 |
Income From Investment Operations: | |||||
Net investment income | 0.25 | 0.05 | 0.02 | 0.09 | 0.13 |
Net realized and unrealized gain (loss) | 0.04 | (0.20) | 0.01 | 0.02 | 0.03 |
TOTAL FROM INVESTMENT OPERATIONS | 0.29 | (0.15) | 0.03 | 0.11 | 0.16 |
Less Distributions: | |||||
Distributions from net investment income | (0.25) | (0.05) | (0.02) | (0.09) | (0.13) |
Net Asset Value, End of Period | $9.88 | $9.84 | $10.04 | $10.03 | $10.01 |
Total Return1 | 3.02% | (1.49)% | 0.33% | 1.14% | 1.59% |
Ratios to Average Net Assets: | |||||
Net expenses2 | 0.51%3 | 0.51% | 0.51% | 0.57%3 | 0.81%3 |
Net investment income | 2.53% | 0.45% | 0.23% | 0.94% | 1.28% |
Expense waiver/reimbursement4 | 0.08% | 0.09% | 0.08% | 0.09% | 0.13% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $270,423 | $407,000 | $692,467 | $584,371 | $626,570 |
Portfolio turnover5 | 44% | 30% | 61% | 100% | 83% |
1 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
2 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
3 | The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.51%, 0.57% and 0.81% for the years ended September 30, 2023, 2020 and 2019, respectively, after taking into account these expense reductions. |
4 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended September 30, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $9.85 | $10.04 | $10.03 | $10.01 | $9.98 |
Income From Investment Operations: | |||||
Net investment income | 0.27 | 0.07 | 0.04 | 0.11 | 0.17 |
Net realized and unrealized gain (loss) | 0.03 | (0.19) | 0.01 | 0.02 | 0.03 |
TOTAL FROM INVESTMENT OPERATIONS | 0.30 | (0.12) | 0.05 | 0.13 | 0.20 |
Less Distributions: | |||||
Distributions from net investment income | (0.27) | (0.07) | (0.04) | (0.11) | (0.17) |
Net Asset Value, End of Period | $9.88 | $9.85 | $10.04 | $10.03 | $10.01 |
Total Return1 | 3.07% | (1.24)% | 0.48% | 1.35% | 2.04% |
Ratios to Average Net Assets: | |||||
Net expenses2 | 0.36%3 | 0.36% | 0.36% | 0.36%3 | 0.36%3 |
Net investment income | 2.67% | 0.60% | 0.39% | 1.14% | 1.72% |
Expense waiver/reimbursement4 | 0.09% | 0.09% | 0.08% | 0.08% | 0.08% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $791,126 | $1,332,830 | $2,133,831 | $2,162,027 | $2,158,811 |
Portfolio turnover5 | 44% | 30% | 61% | 100% | 83% |
1 | Based on net asset value. |
2 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
3 | The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.36%, 0.36% and 0.36% for the years ended September 30, 2023, 2020 and 2019, respectively, after taking into account these expense reductions. |
4 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
5 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended September 30, | Period Ended 9/30/20191 | ||||
2023 | 2022 | 2021 | 2020 | ||
Net Asset Value, Beginning of Period | $9.84 | $10.04 | $10.03 | $10.01 | $10.00 |
Income From Investment Operations: | |||||
Net investment income | 0.27 | 0.07 | 0.04 | 0.12 | 0.05 |
Net realized and unrealized gain | 0.04 | (0.20) | 0.01 | 0.02 | 0.01 |
TOTAL FROM INVESTMENT OPERATIONS | 0.31 | (0.13) | 0.05 | 0.14 | 0.06 |
Less Distributions: | |||||
Distributions from net investment income | (0.27) | (0.07) | (0.04) | (0.12) | (0.05) |
Net Asset Value, End of Period | $9.88 | $9.84 | $10.04 | $10.03 | $10.01 |
Total Return2 | 3.20% | (1.32)% | 0.50% | 1.37% | 0.66% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.34%4 | 0.34% | 0.34% | 0.34%4 | 0.34%4,5 |
Net investment income | 2.69% | 0.65% | 0.38% | 0.99% | 1.52%5 |
Expense waiver/reimbursement6 | 0.07% | 0.06% | 0.06% | 0.06% | 0.07%5 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $100,886 | $148,888 | $208,627 | $60,784 | $12,263 |
Portfolio turnover7 | 44% | 30% | 61% | 100% | 83%8 |
1 | Reflects operations for the period from May 29, 2019 (commencement of operations) to September 30, 2019. |
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 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 0.34% and 0.34% for the years ended September 30, 2023 and 2020, respectively, and 0.34% for the period ended September 30, 2019, after taking into account these expense reductions. |
5 | Computed on an annualized basis. |
6 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
7 | Securities that mature are considered sales for purposes of this calculation. |
8 | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the fiscal year ended September 30, 2019. |
September 30, 2023
Assets: | |
Investment in securities, at value (identified cost $1,181,655,813) | $1,166,841,260 |
Cash | 112,858 |
Income receivable | 7,035,733 |
Receivable for shares sold | 2,744,622 |
Total Assets | 1,176,734,473 |
Liabilities: | |
Payable for investments purchased | 11,500,000 |
Payable for shares redeemed | 1,581,182 |
Income distribution payable | 836,673 |
Payable for investment adviser fee (Note 5) | 39,954 |
Payable for other service fees (Notes 2 and 5) | 33,931 |
Payable for administrative fee (Note 5) | 5,804 |
Accrued expenses (Note 5) | 302,416 |
TOTAL LIABILITIES | 14,299,960 |
Net assets for 117,612,131 shares outstanding | $1,162,434,513 |
Net Assets Consist of: | |
Paid-in capital | $1,197,353,816 |
Total distributable earnings (loss) | (34,919,303) |
TOTAL NET ASSETS | $1,162,434,513 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($270,422,522 ÷ 27,362,370 shares outstanding) $0.001 par value, 500,000,000 shares authorized | $9.88 |
Offering price per share | $9.88 |
Redemption proceeds per share | $9.88 |
Institutional Shares: | |
Net asset value per share ($791,125,921 ÷ 80,040,023 shares outstanding) $0.001 par value, 500,000,000 shares authorized | $9.88 |
Offering price per share | $9.88 |
Redemption proceeds per share | $9.88 |
Class R6 Shares: | |
Net asset value per share ($100,886,070 ÷ 10,209,738 shares outstanding) $0.001 par value, 500,000,000 shares authorized | $9.88 |
Offering price per share | $9.88 |
Redemption proceeds per share | $9.88 |
Year Ended September 30, 2023
Investment Income: | |
Interest | $43,894,426 |
Expenses: | |
Investment adviser fee (Note 5) | 4,318,605 |
Administrative fee (Note 5) | 1,132,553 |
Custodian fees | 59,230 |
Transfer agent fees (Notes 2 and 5) | 557,124 |
Directors’/Trustees’ fees (Note 5) | 13,090 |
Auditing fees | 37,434 |
Legal fees | 12,768 |
Other service fees (Notes 2 and 5) | 486,729 |
Portfolio accounting fees | 215,267 |
Share registration costs | 88,159 |
Printing and postage | 32,112 |
Miscellaneous (Note 5) | 34,333 |
TOTAL EXPENSES | 6,987,404 |
Waiver, Reimbursement and Reduction: | |
Waiver of investment adviser fee (Note 5) | (1,062,330) |
Reimbursement of other operating expenses (Notes 2 and 5) | (186,366) |
Reduction of custodian fees (Note 6) | (6,398) |
TOTAL WAIVER, REIMBURSEMENT AND REDUCTION | (1,255,094) |
Net expenses | 5,732,310 |
Net investment income | 38,162,116 |
Realized and Unrealized Gain (Loss) on Investments: | |
Net realized loss on investments | (5,765,858) |
Net change in unrealized depreciation of investments | 13,113,919 |
Net realized and unrealized gain (loss) on investments | 7,348,061 |
Change in net assets resulting from operations | $45,510,177 |
Year Ended September 30 | 2023 | 2022 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $38,162,116 | $14,489,788 |
Net realized loss | (5,765,858) | (6,670,027) |
Net change in unrealized appreciation/depreciation | 13,113,919 | (42,394,164) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 45,510,177 | (34,574,403) |
Distributions to Shareholders: | ||
Class A Shares | (8,240,031) | (2,444,263) |
Institutional Shares | (26,696,009) | (10,789,094) |
Class R6 Shares | (3,268,073) | (1,221,503) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (38,204,113) | (14,454,860) |
Share Transactions: | ||
Proceeds from sale of shares | 344,741,191 | 1,400,568,261 |
Net asset value of shares issued to shareholders in payment of distributions declared | 28,428,798 | 10,804,320 |
Cost of shares redeemed | (1,106,759,300) | (2,508,550,452) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (733,589,311) | (1,097,177,871) |
Change in net assets | (726,283,247) | (1,146,207,134) |
Net Assets: | ||
Beginning of period | 1,888,717,760 | 3,034,924,894 |
End of period | $1,162,434,513 | $1,888,717,760 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $117,501 | $(28,400) |
Institutional Shares | 430,632 | (157,966) |
Class R6 Shares | 8,991 | — |
TOTAL | $557,124 | $(186,366) |
Other Service Fees Incurred | |
Class A Shares | $486,729 |
Security | Acquisition Date | Acquisition Cost | Value |
California Public Finance Authority (Kendal at Sonoma), Enso Village TEMPS-50 Senior Living Revenue Refunding Bonds (Series B-3), 2.125%, 11/15/2027 | 5/27/2021 | $2,000,000 | $1,916,164 |
At September 30, 2023, the Fund had no outstanding futures contracts.
Year Ended 9/30/2023 | Year Ended 9/30/2022 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 4,180,687 | $41,362,341 | 11,143,057 | $111,110,220 |
Shares issued to shareholders in payment of distributions declared | 749,268 | 7,411,229 | 222,253 | 2,199,666 |
Shares redeemed | (18,910,042) | (186,958,813) | (39,016,431) | (388,315,983) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | (13,980,087) | $(138,185,243) | (27,651,121) | $(275,006,097) |
Year Ended 9/30/2023 | Year Ended 9/30/2022 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 26,085,079 | $257,906,909 | 120,003,958 | $1,197,470,529 |
Shares issued to shareholders in payment of distributions declared | 2,057,653 | 20,356,721 | 855,381 | 8,479,196 |
Shares redeemed | (83,469,453) | (825,050,607) | (198,057,168) | (1,972,016,459) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (55,326,721) | $(546,786,977) | (77,197,829) | $(766,066,734) |
Year Ended 9/30/2023 | Year Ended 9/30/2022 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 4,602,084 | $45,471,941 | 9,242,288 | $91,987,512 |
Shares issued to shareholders in payment of distributions declared | 66,814 | 660,848 | 12,680 | 125,458 |
Shares redeemed | (9,585,256) | (94,749,880) | (14,918,277) | (148,218,010) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | (4,916,358) | $(48,617,091) | (5,663,309) | $(56,105,040) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (74,223,166) | $(733,589,311) | (110,512,259) | $(1,097,177,871) |
2023 | 2022 | |
Tax-exempt income | $38,204,113 | $14,454,860 |
Distributions payable | $(39,757) |
Net unrealized depreciation | $(14,792,513) |
Capital loss carryforwards | $(20,087,033) |
TOTAL | $(34,919,303) |
Short-Term | Long-Term | Total |
$9,069,519 | $11,017,514 | $20,087,033 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Purchases | $387,478,915 |
Sales | $631,981,911 |
November 22, 2023
Beginning Account Value 4/1/2023 | Ending Account Value 9/30/2023 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000.00 | $1,011.50 | $2.57 |
Institutional Shares | $1,000.00 | $1,012.20 | $1.82 |
Class R6 Shares | $1,000.00 | $1,012.30 | $1.72 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000.00 | $1,022.51 | $2.59 |
Institutional Shares | $1,000.00 | $1,023.26 | $1.83 |
Class R6 Shares | $1,000.00 | $1,023.36 | $1.72 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 0.51% |
Institutional Shares | 0.36% |
Class R6 Shares | 0.34% |
Name Birth Date Positions Held with Corporation Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Director Indefinite Term Began serving: January 2000 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd. |
Name Birth Date Positions Held with Corporation Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John B. Fisher* Birth Date: May 16, 1956 Director Indefinite Term Began serving: May 2016 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Director and Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, and Federated MDTA LLC; Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and CEO of Passport Research, Ltd.; Director and President, Technology, Federated Services Company. |
Name Birth Date Positions Held with Corporation Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Director Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Director, KLX Energy Services Holdings, Inc. (oilfield services); former Director of KLX Corp. (aerospace). Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm) and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
Name Birth Date Positions Held with Corporation Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
G. Thomas Hough Birth Date: February 28, 1955 Director Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Lead Director, Member of the Audit and Nominating and Corporate Governance Committees, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 Director Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor Emerita of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (natural gas). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as Associate General Secretary of the Diocese of Pittsburgh, a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally- Green was appointed by the Supreme Court of Pennsylvania to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); Director, Catholic Charities, Pittsburgh; and Director CNX Resources Corporation (natural gas). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint Francis University. |
Name Birth Date Positions Held with Corporation Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Thomas M. O’Neill Birth Date: June 14, 1951 Director Indefinite Term Began serving: August 2006 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber); and Director, The Golisano Children’s Museum of Naples, Florida. |
Madelyn A. Reilly Birth Date: February 2, 1956 Director Indefinite Term Began serving: November 2020 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors, Duquesne University (Retired). Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors and Director of Risk Management and Associate General Counsel, Duquesne University. Prior to her work at Duquesne University, Ms. Reilly served as Assistant General Counsel of Compliance and Enterprise Risk as well as Senior Counsel of Environment, Health and Safety, PPG Industries. Ms. Reilly currently serves as a member of the Board of Directors of UPMC Mercy Hospital. |
Name Birth Date Positions Held with Corporation Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
P. Jerome Richey Birth Date: February 23, 1949 Director Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CONSOL Energy Inc. (now split into two separate publicly traded companies known as CONSOL Energy Inc. and CNX Resources Corp.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and CNX Gas Company; and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
John S. Walsh Birth Date: November 28, 1957 Director Indefinite Term Began serving: November 1999 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Positions Held with Corporation Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: January 2005 | Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, Inc. in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Name Birth Date Positions Held with Corporation Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Deborah A. Cunningham Birth Date: September 15, 1959 Chief Investment Officer Officer since: June 2012 | Principal Occupations: Deborah A. Cunningham was named Chief Investment Officer of Federated Hermes’ money market products in 2004. She joined Federated Hermes in 1981 and has been a Senior Portfolio Manager since 1997 and an Executive Vice President of the Fund’s Adviser since 2009. Ms. Cunningham has received the Chartered Financial Analyst designation and holds an M.S.B.A. in Finance from Robert Morris College. |
Mary Jo Ochson Birth Date: September 12, 1953 CHIEF INVESTMENT OFFICER Officer since: May 2004 | Principal Occupations: Mary Jo Ochson was named Chief Investment Officer of Federated Hermes’ tax-exempt, fixed-income products in 2004 and Chief Investment Officer of Federated Hermes’ Tax-Free Money Markets in 2010. She joined Federated Hermes in 1982 and has been a Senior Portfolio Manager and a Senior Vice President of the Fund’s Adviser since 1996. Ms. Ochson has received the Chartered Financial Analyst designation and holds an M.B.A. in Finance from the University of Pittsburgh. |
Annual Evaluation of Adequacy and Effectiveness
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31417P858
CUSIP 31417P817
Item 2. | Code of Ethics |
(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics (the "Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers") that applies to the registrant's Principal Executive Officer and Principal Financial Officer; the registrant's Principal Financial Officer also serves as the Principal Accounting Officer.
(c) There was no amendment to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.
(d) There was no waiver granted, either actual or implicit, from a provision to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.
(e) Not Applicable
(f)(3) The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.
Item 3. Audit Committee Financial Expert
The registrant's Board has determined that each of the following members of the Board's Audit Committee is an “audit committee financial expert,” and is "independent," for purposes of this Item: G. Thomas Hough and Thomas M. O'Neill.
Item 4. | Principal Accountant Fees and Services |
(a) Audit Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2023 – $73,287
Fiscal year ended 2022 - $68,932
(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2023 - $0
Fiscal year ended 2022 - $0
Amount requiring approval of the registrant’s Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(c) Tax Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2023 - $0
Fiscal year ended 2022 - $0
Amount requiring approval of the registrant’s Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(d) All Other Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2023 - $0
Fiscal year ended 2022 - $0
Amount requiring approval of the registrant’s Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $65,633 and $59,592 respectively. Fiscal year ended 2023- Service fees for analysis of potential Passive Foreign Investment Company holdings. Fiscal year ended 2022- Service fees for analysis of potential Passive Foreign Investment Company holdings.
(e)(1) Audit Committee Policies regarding Pre-approval of Services.
The Audit Committee is required to pre-approve audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor’s independence. Unless a type of service to be provided by the independent auditor has received general pre-approval, it will require specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.
Certain services have the general pre-approval of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate to management its responsibilities to pre-approve services performed by the independent auditor.
The Audit Committee has delegated pre-approval authority to its chairman (the “Chairman”) for services that do not exceed a specified dollar threshold. The Chairman or Chief Audit Executive will report any such pre-approval decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with such pre-approval authority when the Chairman is unavailable.
AUDIT SERVICES
The annual audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee will approve, if necessary, any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.
In addition to the annual audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other audit services, which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain audit services; with limited exception, all other audit services must be specifically pre-approved by the Audit Committee.
AUDIT-RELATED SERVICES
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the RIC’s financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of audit-related services does not impair the independence of the auditor, and has pre-approved certain audit-related services; all other audit-related services must be specifically pre-approved by the Audit Committee.
TAX SERVICES
The Audit Committee believes that the independent auditor can provide tax services to the RIC such as tax compliance, tax planning and tax advice without impairing the auditor’s independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved certain tax services; with limited exception, all tax services involving large and complex transactions must be specifically pre-approved by the Audit Committee.
ALL OTHER SERVICES
With respect to the provision of permissible services other than audit, review or attest services the pre-approval requirement is waived if:
(1) With respect to such services rendered to the Funds, the aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues paid by the audit client to its accountant during the fiscal year in which the services are provided; and,
(2) With respect to such services rendered to the Fund’s investment adviser ( the “Adviser”)and any entity controlling, controlled by to under common control with the Adviser such as affiliated non-U.S. and U.S. funds not under the Audit Committee’s purview and which do not fall within a category of service which has been determined by the Audit Committee not to have a direct impact on the operations or financial reporting of the RIC, the aggregate amount of all services provided constitutes no more than five percent of the total amount of revenues paid to the RIC’s auditor by the RIC, its Adviser and any entity controlling, controlled by, or under common control with the Adviser during the fiscal year in which the services are provided; and
(3) Such services were not recognized by the issuer or RIC at the time of the engagement to be non-audit services; and
(4) Such services are promptly brought to the attention of the Audit Committee and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee who are members of the Board of Directors to whom authority to grant such approvals has been delegated by the Audit Committee.
The Audit Committee may grant general pre-approval to those permissible non-audit services which qualify for pre-approval and which it believes are routine and recurring services, and would not impair the independence of the auditor.
The Securities and Exchange Commission’s (the “SEC”) rules and relevant guidance should be consulted to determine the precise definitions of these services and applicability of exceptions to certain of the prohibitions.
PRE-APPROVAL FEE LEVELS
Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee.
PROCEDURES
Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by the Fund’s Principal Accounting Officer and/or the Chief Audit Executive of Federated Hermes, Inc., only after those individuals have determined that the request or application is consistent with the SEC’s rules on auditor independence.
(e)(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
4(b)
Fiscal year ended 2023 – 0%
Fiscal year ended 2022 - 0%
Percentage of services provided to the registrant’s Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(c)
Fiscal year ended 2023 – 0%
Fiscal year ended 2022 – 0%
Percentage of services provided to the registrant’s Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(d)
Fiscal year ended 2023 – 0%
Fiscal year ended 2022 – 0%
Percentage of services provided to the registrant’s Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
(f) NA
(g) Non-Audit Fees billed to the registrant, the registrant’s Adviser, and certain entities controlling, controlled by or under common control with the Adviser:
Fiscal year ended 2023 - $283,641
Fiscal year ended 2022 - $203,782
(h) The registrant’s Audit Committee has considered that the provision of non-audit services that were rendered to the registrant’s Adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
Item 5. | Audit Committee of Listed Registrants |
Not Applicable
Item 6. | Schedule of Investments |
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
Item 8. | Portfolio Managers of Closed-End Management Investment Companies |
Not Applicable
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
Not Applicable
Item 10. | Submission of Matters to a Vote of Security Holders |
No Changes to Report
Item 11. | Controls and Procedures |
(a) The registrant’s President and Treasurer have concluded that the
registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies |
Not Applicable
Item 13. | Exhibits |
(a)(1) Code of Ethics- Not Applicable to this Report.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Federated Hermes Fixed Income Securities, Inc.
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date November 22, 2023
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 November 22, 2023
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date November 22, 2023