Federated Hermes Corporate Bond Fund
Portfolio of Investments
August 31, 2023 (unaudited)
Principal Amount or Shares | Value | ||
CORPORATE BONDS—80.7% | |||
Basic Industry - Metals & Mining—0.4% | |||
$ 2,795,000 | Glencore Funding LLC, Sr. Unsecd. Note, 144A, 2.850%, 4/27/2031 | $ 2,281,727 | |
1,080,000 | Southern Copper Corp., Sr. Unsecd. Note, 6.750%, 4/16/2040 | 1,172,740 | |
1,360,000 | Worthington Industries, Inc., Sr. Unsecd. Note, 4.300%, 8/1/2032 | 1,101,989 | |
TOTAL | 4,556,456 | ||
Capital Goods - Aerospace & Defense—2.3% | |||
2,120,000 | Boeing Co., Sr. Unsecd. Note, 2.950%, 2/1/2030 | 1,837,521 | |
1,755,000 | Boeing Co., Sr. Unsecd. Note, 3.950%, 8/1/2059 | 1,261,038 | |
3,000,000 | Boeing Co., Sr. Unsecd. Note, 5.805%, 5/1/2050 | 2,922,855 | |
1,930,000 | Huntington Ingalls Industries, Inc., Sr. Unsecd. Note, 3.483%, 12/1/2027 | 1,778,874 | |
5,900,000 | Leidos, Inc., Sr. Unsecd. Note, Series WI, 2.300%, 2/15/2031 | 4,677,774 | |
1,540,000 | Leidos, Inc., Sr. Unsecd. Note, Series WI, 3.625%, 5/15/2025 | 1,484,934 | |
3,500,000 | Lockheed Martin Corp., Sr. Unsecd. Note, 3.550%, 1/15/2026 | 3,389,075 | |
2,775,000 | Teledyne Technologies, Inc., Sr. Unsecd. Note, 1.600%, 4/1/2026 | 2,529,920 | |
3,230,000 | 1 | Textron Financial Corp., Jr. Sub. Note, 144A, 7.361% (CME Term SOFR 3 Month +1.996%), 2/15/2042 | 2,495,365 |
760,000 | Textron, Inc., Sr. Unsecd. Note, 3.875%, 3/1/2025 | 740,653 | |
1,660,000 | Textron, Inc., Sr. Unsecd. Note, 3.900%, 9/17/2029 | 1,527,642 | |
690,000 | Textron, Inc., Sr. Unsecd. Note, 4.300%, 3/1/2024 | 684,801 | |
TOTAL | 25,330,452 | ||
Capital Goods - Building Materials—1.2% | |||
5,625,000 | Allegion PLC, Sr. Unsecd. Note, 3.500%, 10/1/2029 | 5,023,812 | |
4,160,000 | Allegion US Holdings Co., Inc., Sr. Unsecd. Note, 3.550%, 10/1/2027 | 3,851,933 | |
2,980,000 | Carrier Global Corp., Sr. Unsecd. Note, 2.700%, 2/15/2031 | 2,503,561 | |
1,435,000 | Carrier Global Corp., Sr. Unsecd. Note, 2.722%, 2/15/2030 | 1,231,529 | |
TOTAL | 12,610,835 | ||
Capital Goods - Construction Machinery—1.2% | |||
2,820,000 | Ashtead Capital, Inc., Sr. Unsecd. Note, 144A, 2.450%, 8/12/2031 | 2,208,376 | |
1,670,000 | CNH Industrial Capital America LLC, Sr. Unsecd. Note, 4.200%, 1/15/2024 | 1,658,859 | |
3,100,000 | CNH Industrial NV, Sr. Unsecd. Note, Series MTN, 3.850%, 11/15/2027 | 2,927,247 | |
3,675,000 | John Deere Capital Corp., Sr. Unsecd. Note, 3.900%, 6/7/2032 | 3,429,457 | |
3,300,000 | Weir Group PLC/The, Sr. Unsecd. Note, 144A, 2.200%, 5/13/2026 | 2,982,910 | |
TOTAL | 13,206,849 | ||
Capital Goods - Diversified Manufacturing—1.5% | |||
2,210,000 | Hubbell, Inc., Sr. Unsecd. Note, 2.300%, 3/15/2031 | 1,811,462 | |
1,560,000 | Lennox International, Inc., Sr. Unsecd. Note, 1.700%, 8/1/2027 | 1,366,282 | |
3,074,000 | Lennox International, Inc., Sr. Unsecd. Note, 3.000%, 11/15/2023 | 3,054,606 | |
2,155,000 | Roper Technologies, Inc., Sr. Unsecd. Note, 2.000%, 6/30/2030 | 1,758,883 | |
1,050,000 | Roper Technologies, Inc., Sr. Unsecd. Note, 2.950%, 9/15/2029 | 929,527 | |
820,000 | Roper Technologies, Inc., Sr. Unsecd. Note, 3.800%, 12/15/2026 | 782,981 | |
680,000 | Roper Technologies, Inc., Sr. Unsecd. Note, 3.850%, 12/15/2025 | 656,746 | |
2,840,000 | Roper Technologies, Inc., Sr. Unsecd. Note, 4.200%, 9/15/2028 | 2,708,155 | |
4,045,000 | Valmont Industries, Inc., Sr. Unsecd. Note, 5.250%, 10/1/2054 | 3,472,979 | |
TOTAL | 16,541,621 | ||
Communications - Cable & Satellite—2.6% | |||
6,400,000 | CCO Safari II LLC, 4.908%, 7/23/2025 | 6,290,266 | |
1,235,000 | CCO Safari II LLC, 6.484%, 10/23/2045 | 1,136,814 |
1
Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Communications - Cable & Satellite—continued | |||
$ 335,000 | Charter Communications Operating, LLC / Charter Communications Operating Capital Corp., 5.050%, 3/30/2029 | $ 319,189 | |
3,350,000 | Charter Communications Operating, LLC /Charter Communications Operating Capital Corp., Term Loan - 1st Lien, 3.900%, 6/1/2052 | 2,145,721 | |
1,165,000 | Charter Communications, Inc., 4.200%, 3/15/2028 | 1,085,838 | |
900,000 | Comcast Corp., 7.050%, 3/15/2033 | 1,026,505 | |
5,225,000 | Comcast Corp., Sr. Unsecd. Note, 2.650%, 2/1/2030 | 4,546,647 | |
1,500,000 | Comcast Corp., Sr. Unsecd. Note, 3.150%, 2/15/2028 | 1,392,792 | |
1,455,000 | Comcast Corp., Sr. Unsecd. Note, 3.300%, 2/1/2027 | 1,376,867 | |
2,500,000 | Comcast Corp., Sr. Unsecd. Note, 4.250%, 10/15/2030 | 2,379,936 | |
1,727,000 | Comcast Corp., Sr. Unsecd. Note, Series WI, 3.999%, 11/1/2049 | 1,379,077 | |
1,910,000 | Cox Communications, Inc., Sr. Unsecd. Note, 144A, 3.350%, 9/15/2026 | 1,797,698 | |
1,250,000 | NBCUniversal, Inc., Sr. Unsecd. Note, 5.950%, 4/1/2041 | 1,302,582 | |
1,310,000 | Time Warner Cable, Inc., Company Guarantee, 5.500%, 9/1/2041 | 1,077,118 | |
1,000,000 | Time Warner Cable, Inc., Company Guarantee, 6.750%, 6/15/2039 | 968,047 | |
TOTAL | 28,225,097 | ||
Communications - Media & Entertainment—2.3% | |||
5,400,000 | Alphabet, Inc., Sr. Unsecd. Note, 2.250%, 8/15/2060 | 3,163,201 | |
3,995,000 | British Sky Broadcasting Group PLC, Sr. Unsecd. Note, 144A, 3.750%, 9/16/2024 | 3,913,704 | |
1,170,000 | Discovery Communications LLC, Sr. Unsecd. Note, 4.650%, 5/15/2050 | 874,275 | |
785,000 | Grupo Televisa S.A., Sr. Unsecd. Note, 5.000%, 5/13/2045 | 667,163 | |
2,918,000 | Grupo Televisa S.A., Sr. Unsecd. Note, 6.625%, 3/18/2025 | 2,939,690 | |
2,615,000 | Interpublic Group of Cos., Inc., Sr. Unsecd. Note, 3.375%, 3/1/2041 | 1,845,316 | |
2,630,000 | Netflix, Inc., Sr. Unsecd. Note, 4.875%, 4/15/2028 | 2,591,759 | |
2,350,000 | Paramount Global, Sr. Unsecd. Note, 4.900%, 8/15/2044 | 1,673,735 | |
985,000 | Paramount Global, Sr. Unsecd. Note, 4.950%, 5/19/2050 | 722,724 | |
3,985,000 | S&P Global, Inc., Sr. Unsecd. Note, 4.250%, 5/1/2029 | 3,840,012 | |
3,795,000 | Warnermedia Holdings, Inc., Sr. Unsecd. Note, 5.050%, 3/15/2042 | 3,123,180 | |
TOTAL | 25,354,759 | ||
Communications - Telecom Wireless—1.5% | |||
1,365,000 | American Tower Corp., Sr. Unsecd. Note, 5.000%, 2/15/2024 | 1,359,624 | |
2,500,000 | Crown Castle, Inc., Sr. Unsecd. Note, 3.200%, 9/1/2024 | 2,436,594 | |
2,815,000 | Crown Castle, Inc., Sr. Unsecd. Note, 3.250%, 1/15/2051 | 1,831,023 | |
2,795,000 | Crown Castle, Inc., Sr. Unsecd. Note, 3.800%, 2/15/2028 | 2,602,060 | |
3,000,000 | T-Mobile USA, Inc., 4.500%, 4/15/2050 | 2,480,134 | |
2,700,000 | T-Mobile USA, Inc., Series WI, 3.400%, 10/15/2052 | 1,831,542 | |
3,000,000 | T-Mobile USA, Inc., Series WI, 3.875%, 4/15/2030 | 2,739,307 | |
1,135,000 | Vodafone Group PLC, Sr. Unsecd. Note, 4.125%, 5/30/2025 | 1,109,795 | |
TOTAL | 16,390,079 | ||
Communications - Telecom Wirelines—3.7% | |||
2,425,000 | AT&T, Inc., Sr. Unsecd. Note, 2.250%, 2/1/2032 | 1,892,902 | |
5,331,000 | AT&T, Inc., Sr. Unsecd. Note, 2.550%, 12/1/2033 | 4,069,744 | |
5,000,000 | AT&T, Inc., Sr. Unsecd. Note, 3.300%, 2/1/2052 | 3,264,445 | |
3,050,000 | AT&T, Inc., Sr. Unsecd. Note, 3.500%, 6/1/2041 | 2,238,980 | |
1,335,000 | AT&T, Inc., Sr. Unsecd. Note, 3.500%, 2/1/2061 | 856,952 | |
4,033,000 | AT&T, Inc., Sr. Unsecd. Note, 3.800%, 12/1/2057 | 2,722,292 | |
650,000 | AT&T, Inc., Sr. Unsecd. Note, 3.850%, 6/1/2060 | 443,654 | |
2,500,000 | AT&T, Inc., Sr. Unsecd. Note, 4.350%, 3/1/2029 | 2,366,303 | |
1,000,000 | AT&T, Inc., Sr. Unsecd. Note, 5.150%, 3/15/2042 | 894,238 | |
3,080,000 | AT&T, Inc., Sr. Unsecd. Note, 6.375%, 3/1/2041 | 3,170,322 | |
1,400,000 | AT&T, Inc., Sr. Unsecd. Note, Series WI, 5.300%, 8/15/2058 | 1,204,594 |
2
Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Communications - Telecom Wirelines—continued | |||
$ 2,000,000 | Rogers Communications, Inc., Sr. Unsecd. Note, 4.550%, 3/15/2052 | $ 1,551,433 | |
2,175,000 | Telefonica Emisiones SAU, Sr. Unsecd. Note, 5.213%, 3/8/2047 | 1,824,083 | |
2,530,000 | Telefonica Emisiones SAU, Sr. Unsecd. Note, 5.520%, 3/1/2049 | 2,210,690 | |
3,730,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 2.550%, 3/21/2031 | 3,072,643 | |
3,000,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 3.400%, 3/22/2041 | 2,229,279 | |
6,340,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 4.125%, 8/15/2046 | 5,045,165 | |
2,000,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 4.500%, 8/10/2033 | 1,848,615 | |
TOTAL | 40,906,334 | ||
Consumer Cyclical - Automotive—0.7% | |||
2,610,000 | Daimler Trucks Financial N.A. Sr. Unsecd. Note, 144A, 2.000%, 12/14/2026 | 2,347,799 | |
960,000 | General Motors Co., Sr. Unsecd. Note, 4.000%, 4/1/2025 | 934,001 | |
1,775,000 | General Motors Co., Sr. Unsecd. Note, 5.200%, 4/1/2045 | 1,468,300 | |
1,110,000 | General Motors Financial Co., Inc., Sr. Unsecd. Note, 5.650%, 1/17/2029 | 1,091,958 | |
1,405,000 | Stellantis Finance US, Inc., Sr. Unsecd. Note, 144A, 1.711%, 1/29/2027 | 1,229,583 | |
TOTAL | 7,071,641 | ||
Consumer Cyclical - Retailers—1.3% | |||
1,835,000 | Advance Auto Parts, Inc., Sr. Unsecd. Note, 1.750%, 10/1/2027 | 1,550,016 | |
5,600,000 | Advance Auto Parts, Inc., Sr. Unsecd. Note, Series WI, 3.900%, 4/15/2030 | 4,855,359 | |
1,080,000 | AutoNation, Inc., Sr. Unsecd. Note, 4.750%, 6/1/2030 | 1,006,750 | |
2,500,000 | Home Depot, Inc., Sr. Unsecd. Note, 3.000%, 4/1/2026 | 2,390,504 | |
2,500,000 | Home Depot, Inc., Sr. Unsecd. Note, 3.250%, 4/15/2032 | 2,222,808 | |
3,200,000 | Tractor Supply Co., Sr. Unsecd. Note, 1.750%, 11/1/2030 | 2,503,789 | |
TOTAL | 14,529,226 | ||
Consumer Cyclical - Services—1.8% | |||
6,880,000 | Amazon.com, Inc., Sr. Unsecd. Note, 2.700%, 6/3/2060 | 4,255,005 | |
2,765,000 | Amazon.com, Inc., Sr. Unsecd. Note, 3.300%, 4/13/2027 | 2,633,620 | |
5,300,000 | Amazon.com, Inc., Sr. Unsecd. Note, 3.600%, 4/13/2032 | 4,878,919 | |
3,915,000 | Booking Holdings, Inc., Sr. Unsecd. Note, 4.625%, 4/13/2030 | 3,830,139 | |
3,600,000 | Cintas Corp. No. 2, Sr. Unsecd. Note, 4.000%, 5/1/2032 | 3,368,868 | |
1,425,000 | Expedia Group, Inc., Sr. Unsecd. Note, Series WI, 2.950%, 3/15/2031 | 1,192,465 | |
TOTAL | 20,159,016 | ||
Consumer Non-Cyclical - Food/Beverage—5.0% | |||
5,545,000 | Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc., Sr. Unsecd. Note, 3.650%, 2/1/2026 | 5,359,652 | |
3,870,000 | Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc., Sr. Unsecd. Note, 4.900%, 2/1/2046 | 3,603,095 | |
6,525,000 | Anheuser-Busch InBev Worldwide, Inc., Sr. Unsecd. Note, 4.600%, 4/15/2048 | 5,880,924 | |
980,000 | Bacardi Ltd., Sr. Unsecd. Note, 144A, 2.750%, 7/15/2026 | 903,844 | |
3,875,000 | Coca-Cola Femsa S.A.B. de C.V., Sr. Unsecd. Note, 2.750%, 1/22/2030 | 3,362,516 | |
2,000,000 | Constellation Brands, Inc., Sr. Unsecd. Note, 3.150%, 8/1/2029 | 1,788,513 | |
405,000 | Constellation Brands, Inc., Sr. Unsecd. Note, 3.750%, 5/1/2050 | 308,608 | |
4,185,000 | Constellation Brands, Inc., Sr. Unsecd. Note, 4.650%, 11/15/2028 | 4,070,607 | |
1,850,000 | Constellation Brands, Inc., Sr. Unsecd. Note, 5.250%, 11/15/2048 | 1,729,916 | |
1,624,000 | Grupo Bimbo S.A.B. de CV, 144A, 4.875%, 6/27/2044 | 1,438,671 | |
4,650,000 | International Flavors & Fragrances, Inc., Sr. Unsecd. Note, 144A, 1.230%, 10/1/2025 | 4,165,539 | |
730,000 | International Flavors & Fragrances, Inc., Sr. Unsecd. Note, 144A, 1.832%, 10/15/2027 | 614,390 | |
1,530,000 | Keurig Dr Pepper, Inc., Sr. Unsecd. Note, 4.417%, 5/25/2025 | 1,501,467 | |
1,030,000 | Keurig Dr Pepper, Inc., Sr. Unsecd. Note, 4.985%, 5/25/2038 | 947,785 | |
6,165,000 | Kraft Heinz Foods Co., Sr. Unsecd. Note, 4.375%, 6/1/2046 | 5,104,942 | |
610,000 | Molson Coors Brewing Co., Sr. Unsecd. Note, 4.200%, 7/15/2046 | 483,801 | |
4,075,000 | PepsiCo, Inc., Sr. Unsecd. Note, 1.950%, 10/21/2031 | 3,329,434 | |
3,025,000 | Smithfield Foods, Inc., Sr. Unsecd. Note, 144A, 2.625%, 9/13/2031 | 2,233,147 |
3
Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Consumer Non-Cyclical - Food/Beverage—continued | |||
$ 4,464,000 | Smithfield Foods, Inc., Sr. Unsecd. Note, 144A, 3.000%, 10/15/2030 | $ 3,511,753 | |
5,000,000 | Sysco Corp., Sr. Unsecd. Note, 4.450%, 3/15/2048 | 4,137,148 | |
TOTAL | 54,475,752 | ||
Consumer Non-Cyclical - Health Care—3.0% | |||
585,000 | Alcon Finance Corp., Sr. Unsecd. Note, 144A, 2.600%, 5/27/2030 | 493,768 | |
2,000,000 | Alcon Finance Corp., Sr. Unsecd. Note, 144A, 3.000%, 9/23/2029 | 1,755,304 | |
2,350,000 | Becton Dickinson & Co., Sr. Unsecd. Note, 3.700%, 6/6/2027 | 2,228,985 | |
1,455,000 | Becton Dickinson & Co., Sr. Unsecd. Note, 3.734%, 12/15/2024 | 1,420,440 | |
2,615,000 | Becton Dickinson & Co., Sr. Unsecd. Note, 4.685%, 12/15/2044 | 2,318,978 | |
448,439 | CVS Health Corp., Pass Thru Cert., 144A, 5.298%, 1/11/2027 | 439,951 | |
2,750,000 | CVS Health Corp., Sr. Unsecd. Note, 3.750%, 4/1/2030 | 2,503,221 | |
2,395,000 | CVS Health Corp., Sr. Unsecd. Note, 4.780%, 3/25/2038 | 2,146,118 | |
2,100,000 | CVS Health Corp., Sr. Unsecd. Note, 5.050%, 3/25/2048 | 1,843,151 | |
985,000 | CVS Health Corp., Sr. Unsecd. Note, 5.125%, 7/20/2045 | 878,029 | |
2,495,000 | Danaher Corp., Sr. Unsecd. Note, 2.600%, 10/1/2050 | 1,594,725 | |
6,740,000 | DH Europe Finance II S.a.r.l., Sr. Unsecd. Note, 2.600%, 11/15/2029 | 5,946,492 | |
4,365,000 | DH Europe Finance II S.a.r.l., Sr. Unsecd. Note, 3.400%, 11/15/2049 | 3,264,090 | |
2,420,000 | PerkinElmer, Inc., Sr. Unsecd. Note, 1.900%, 9/15/2028 | 2,052,729 | |
2,275,000 | PerkinElmer, Inc., Sr. Unsecd. Note, 3.300%, 9/15/2029 | 2,024,273 | |
2,750,000 | Thermo Fisher Scientific, Inc., Sr. Unsecd. Note, 2.600%, 10/1/2029 | 2,414,431 | |
TOTAL | 33,324,685 | ||
Consumer Non-Cyclical - Pharmaceuticals—4.7% | |||
2,450,000 | Abbott Laboratories, Sr. Unsecd. Note, 1.400%, 6/30/2030 | 1,998,482 | |
2,450,000 | Abbott Laboratories, Sr. Unsecd. Note, 3.750%, 11/30/2026 | 2,375,237 | |
4,200,000 | AbbVie, Inc., Sr. Unsecd. Note, 2.950%, 11/21/2026 | 3,932,989 | |
3,800,000 | AbbVie, Inc., Sr. Unsecd. Note, 3.200%, 11/21/2029 | 3,427,423 | |
750,000 | AbbVie, Inc., Sr. Unsecd. Note, 3.800%, 3/15/2025 | 730,743 | |
970,000 | AbbVie, Inc., Sr. Unsecd. Note, 4.250%, 11/21/2049 | 817,506 | |
2,940,000 | Amgen, Inc., Sr. Unsecd. Note, 5.250%, 3/2/2033 | 2,925,946 | |
2,900,000 | Amgen, Inc., Sr. Unsecd. Note, 5.650%, 3/2/2053 | 2,876,946 | |
2,875,000 | AstraZeneca PLC, Sr. Unsecd. Note, 2.125%, 8/6/2050 | 1,716,481 | |
2,330,000 | AstraZeneca PLC, Sr. Unsecd. Note, 3.125%, 6/12/2027 | 2,183,732 | |
2,500,000 | AstraZeneca PLC, Sr. Unsecd. Note, 4.000%, 1/17/2029 | 2,399,663 | |
730,000 | Bayer US Finance II LLC, Sr. Unsecd. Note, 144A, 4.250%, 12/15/2025 | 707,256 | |
500,000 | Bayer US Finance II LLC, Sr. Unsecd. Note, 144A, 4.875%, 6/25/2048 | 426,523 | |
280,000 | Bayer US Finance LLC, Sr. Unsecd. Note, 144A, 3.375%, 10/8/2024 | 272,552 | |
3,165,000 | Biogen, Inc., Sr. Unsecd. Note, 3.150%, 5/1/2050 | 2,068,588 | |
2,609,000 | Biogen, Inc., Sr. Unsecd. Note, 3.250%, 2/15/2051 | 1,738,227 | |
4,900,000 | Bristol-Myers Squibb Co., Sr. Unsecd. Note, Series WI, 3.400%, 7/26/2029 | 4,541,247 | |
5,425,000 | Merck & Co., Inc., Sr. Unsecd. Note, 1.700%, 6/10/2027 | 4,864,006 | |
5,835,000 | Pfizer Investment Enterprises Pte Ltd., Sr. Unsecd. Note, 5.300%, 5/19/2053 | 5,841,439 | |
1,365,000 | Regeneron Pharmaceuticals, Inc., Sr. Unsecd. Note, 1.750%, 9/15/2030 | 1,087,034 | |
4,538,000 | Regeneron Pharmaceuticals, Inc., Sr. Unsecd. Note, 2.800%, 9/15/2050 | 2,824,296 | |
1,915,000 | Takeda Pharmaceutical Co. Ltd., Sr. Unsecd. Note, 2.050%, 3/31/2030 | 1,576,376 | |
TOTAL | 51,332,692 | ||
Consumer Non-Cyclical - Tobacco—0.5% | |||
3,080,000 | BAT Capital Corp., Sr. Unsecd. Note, Series WI, 3.557%, 8/15/2027 | 2,858,596 | |
4,220,000 | BAT Capital Corp., Sr. Unsecd. Note, Series WI, 4.540%, 8/15/2047 | 3,071,292 | |
TOTAL | 5,929,888 |
4
Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Energy - Independent—0.6% | |||
$ 980,000 | Coterra Energy, Inc., Sr. Unsecd. Note, Series WI, 3.900%, 5/15/2027 | $ 932,347 | |
4,119,000 | Hess Corp., Sr. Unsecd. Note, 5.600%, 2/15/2041 | 3,876,794 | |
440,000 | XTO Energy, Inc., 6.375%, 6/15/2038 | 465,291 | |
775,000 | XTO Energy, Inc., Sr. Unsecd. Note, 6.750%, 8/1/2037 | 864,627 | |
TOTAL | 6,139,059 | ||
Energy - Integrated—2.2% | |||
1,695,000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 1.749%, 8/10/2030 | 1,375,213 | |
6,100,000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 2.939%, 6/4/2051 | 3,985,959 | |
3,000,000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 3.937%, 9/21/2028 | 2,866,328 | |
3,255,000 | Cenovus Energy, Inc., Sr. Unsecd. Note, 3.750%, 2/15/2052 | 2,287,574 | |
5,765,000 | Chevron U.S.A., Inc., Sr. Unsecd. Note, 1.018%, 8/12/2027 | 5,007,923 | |
1,750,000 | CNPC Hong Kong Overseas Capital Ltd., Company Guarantee, 144A, 5.950%, 4/28/2041 | 1,857,143 | |
5,100,000 | ConocoPhillips Co., Sr. Unsecd. Note, 2.400%, 3/7/2025 | 4,890,943 | |
2,000,000 | Husky Energy, Inc., Sr. Unsecd. Note, 4.400%, 4/15/2029 | 1,841,759 | |
220,000 | Petro-Canada, Deb., 7.000%, 11/15/2028 | 234,298 | |
TOTAL | 24,347,140 | ||
Energy - Midstream—3.0% | |||
3,975,000 | Boardwalk Pipeline Partners LP, Sr. Unsecd. Note, 3.400%, 2/15/2031 | 3,393,749 | |
805,000 | Boardwalk Pipeline Partners LP, Sr. Unsecd. Note, 4.800%, 5/3/2029 | 766,898 | |
1,652,000 | Columbia Pipeline Group, Inc., Sr. Unsecd. Note, 4.500%, 6/1/2025 | 1,612,929 | |
1,000,000 | Columbia Pipeline Group, Inc., Sr. Unsecd. Note, 5.800%, 6/1/2045 | 927,349 | |
1,290,000 | Eastern Gas Transmission & Storage, Inc., Sr. Unsecd. Note, 3.000%, 11/15/2029 | 1,123,562 | |
5,730,000 | Energy Transfer LP, Sr. Unsecd. Note, 4.900%, 2/1/2024 | 5,701,411 | |
2,137,000 | Energy Transfer LP, Sr. Unsecd. Note, 5.150%, 3/15/2045 | 1,804,433 | |
2,475,000 | Enterprise Products Operating LLC, Sr. Unsecd. Note, 3.750%, 2/15/2025 | 2,408,858 | |
3,190,000 | MPLX LP, Sr. Unsecd. Note, 4.000%, 3/15/2028 | 2,996,666 | |
2,350,000 | MPLX LP, Sr. Unsecd. Note, 4.500%, 4/15/2038 | 1,992,959 | |
1,525,000 | MPLX LP, Sr. Unsecd. Note, 5.200%, 3/1/2047 | 1,314,490 | |
2,265,000 | MPLX LP, Sr. Unsecd. Note, Series WI, 5.200%, 12/1/2047 | 1,946,281 | |
3,085,000 | ONEOK, Inc., Sr. Unsecd. Note, 5.200%, 7/15/2048 | 2,641,107 | |
2,335,000 | Targa Resources, Inc., Sr. Unsecd. Note, 4.200%, 2/1/2033 | 2,060,262 | |
2,300,000 | Williams Partners LP, Sr. Unsecd. Note, 4.900%, 1/15/2045 | 1,964,747 | |
TOTAL | 32,655,701 | ||
Energy - Refining—0.7% | |||
875,000 | Marathon Petroleum Corp., Sr. Unsecd. Note, 3.625%, 9/15/2024 | 856,224 | |
1,340,000 | Marathon Petroleum Corp., Sr. Unsecd. Note, 4.500%, 4/1/2048 | 1,043,579 | |
720,000 | Marathon Petroleum Corp., Sr. Unsecd. Note, 6.500%, 3/1/2041 | 734,515 | |
2,700,000 | Valero Energy Corp., Sr. Unsecd. Note, 3.650%, 12/1/2051 | 1,844,239 | |
1,555,000 | Valero Energy Corp., Sr. Unsecd. Note, 4.000%, 4/1/2029 | 1,469,208 | |
1,665,000 | Valero Energy Corp., Sr. Unsecd. Note, 7.500%, 4/15/2032 | 1,864,674 | |
TOTAL | 7,812,439 | ||
Financial Institution - Banking—17.4% | |||
3,700,000 | American Express Co., Sr. Unsecd. Note, 4.050%, 5/3/2029 | 3,517,170 | |
2,000,000 | Associated Banc-Corp., Sub. Note, 4.250%, 1/15/2025 | 1,914,995 | |
2,450,000 | Bank of America Corp., Sr. Unsecd. Note, 2.592%, 4/29/2031 | 2,039,269 | |
3,050,000 | Bank of America Corp., Sr. Unsecd. Note, 2.972%, 2/4/2033 | 2,508,802 | |
3,500,000 | Bank of America Corp., Sr. Unsecd. Note, 3.366%, 1/23/2026 | 3,377,289 | |
2,175,000 | Bank of America Corp., Sr. Unsecd. Note, 3.705%, 4/24/2028 | 2,036,852 | |
4,890,000 | Bank of America Corp., Sr. Unsecd. Note, 4.376%, 4/27/2028 | 4,696,540 | |
1,435,000 | Bank of America Corp., Sr. Unsecd. Note, 4.571%, 4/27/2033 | 1,330,782 |
5
Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - Banking—continued | |||
$ 2,500,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 2.496%, 2/13/2031 | $ 2,080,245 | |
6,000,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 2.884%, 10/22/2030 | 5,151,035 | |
3,750,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 3.458%, 3/15/2025 | 3,697,505 | |
2,230,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 3.824%, 1/20/2028 | 2,103,184 | |
1,850,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 4.000%, 4/1/2024 | 1,831,979 | |
2,100,000 | Bank of America Corp., Sub. Note, Series L, 3.950%, 4/21/2025 | 2,034,056 | |
2,250,000 | Bank of America Corp., Sub. Note, Series L, 4.183%, 11/25/2027 | 2,136,828 | |
7,370,000 | Bank of New York Mellon Corp., Sr. Unsecd. Note, Series MTN, 3.992%, 6/13/2028 | 7,036,245 | |
1,200,000 | Capital One Financial Corp., Sr. Sub. Note, 4.200%, 10/29/2025 | 1,154,017 | |
990,000 | Citigroup, Inc., 4.125%, 7/25/2028 | 923,598 | |
2,800,000 | Citigroup, Inc., 4.300%, 11/20/2026 | 2,691,345 | |
2,750,000 | Citigroup, Inc., Sr. Unsecd. Note, 2.572%, 6/3/2031 | 2,272,316 | |
2,780,000 | Citigroup, Inc., Sr. Unsecd. Note, 2.976%, 11/5/2030 | 2,392,327 | |
3,095,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.057%, 1/25/2033 | 2,554,288 | |
1,705,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.352%, 4/24/2025 | 1,673,922 | |
1,910,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.400%, 5/1/2026 | 1,807,731 | |
6,000,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.520%, 10/27/2028 | 5,540,272 | |
2,750,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.980%, 3/20/2030 | 2,534,048 | |
2,020,000 | Citigroup, Inc., Sr. Unsecd. Note, 4.910%, 5/24/2033 | 1,921,073 | |
1,000,000 | Comerica, Inc., 3.800%, 7/22/2026 | 916,781 | |
2,625,000 | Compass Bank, Birmingham, Sub. Note, Series BKNT, 3.875%, 4/10/2025 | 2,537,248 | |
1,840,000 | Fifth Third Bancorp, Sr. Unsecd. Note, 2.375%, 1/28/2025 | 1,752,152 | |
2,750,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 2.600%, 2/7/2030 | 2,322,286 | |
2,575,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.102%, 2/24/2033 | 2,142,588 | |
2,000,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.272%, 9/29/2025 | 1,940,430 | |
7,700,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.814%, 4/23/2029 | 7,128,269 | |
2,000,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.850%, 1/26/2027 | 1,898,970 | |
4,625,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 4.223%, 5/1/2029 | 4,359,716 | |
5,035,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 4.387%, 6/15/2027 | 4,888,828 | |
2,100,000 | Goldman Sachs Group, Inc., Sub. Note, 6.345%, 2/15/2034 | 2,109,747 | |
2,485,000 | Huntington National Bank, Sr. Unsecd. Note, 4.552%, 5/17/2028 | 2,354,627 | |
3,100,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 2.963%, 1/25/2033 | 2,576,781 | |
7,380,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 3.509%, 1/23/2029 | 6,807,455 | |
5,250,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 4.323%, 4/26/2028 | 5,050,994 | |
4,510,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 4.565%, 6/14/2030 | 4,312,460 | |
2,610,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 5.350%, 6/1/2034 | 2,579,994 | |
1,085,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, Series VAR, 2.947%, 2/24/2028 | 996,549 | |
2,000,000 | JPMorgan Chase & Co., Sub. Deb., 2.956%, 5/13/2031 | 1,701,148 | |
870,000 | JPMorgan Chase & Co., Sub. Deb., 8.000%, 4/29/2027 | 955,293 | |
7,500,000 | JPMorgan Chase & Co., Sub. Note, 3.875%, 9/10/2024 | 7,356,385 | |
3,490,000 | Morgan Stanley, Sr. Unsecd. Note, 2.943%, 1/21/2033 | 2,859,786 | |
4,000,000 | Morgan Stanley, Sr. Unsecd. Note, 3.625%, 1/20/2027 | 3,780,950 | |
5,000,000 | Morgan Stanley, Sr. Unsecd. Note, 4.210%, 4/20/2028 | 4,783,012 | |
2,375,000 | Morgan Stanley, Sr. Unsecd. Note, 4.457%, 4/22/2039 | 2,093,160 | |
2,500,000 | Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 2.699%, 1/22/2031 | 2,105,495 | |
7,500,000 | Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 3.772%, 1/24/2029 | 6,960,250 | |
2,650,000 | Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 3.875%, 1/27/2026 | 2,551,785 | |
2,750,000 | Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 4.431%, 1/23/2030 | 2,613,025 | |
1,500,000 | Morgan Stanley, Sub. Note, 3.950%, 4/23/2027 | 1,415,507 | |
3,675,000 | PNC Financial Services Group, Inc., Sub. Note, 4.626%, 6/6/2033 | 3,329,973 |
6
Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - Banking—continued | |||
$ 254,920 | 2 | Regional Diversified Funding, 144A, 9.250%, 3/15/2030 | $ 107,067 |
2,485,000 | State Street Corp., Sr. Unsecd. Note, 4.421%, 5/13/2033 | 2,312,990 | |
3,675,000 | Truist Financial Corp., Sr. Unsecd. Note, Series MTN, 4.123%, 6/6/2028 | 3,466,598 | |
4,000,000 | Wells Fargo & Co., Sr. Unsecd. Note, Series MTN, 2.393%, 6/2/2028 | 3,561,426 | |
2,750,000 | Wells Fargo & Co., Sr. Unsecd. Note, Series MTN, 2.572%, 2/11/2031 | 2,296,932 | |
7,050,000 | Wells Fargo & Co., Sr. Unsecd. Note, Series MTN, 3.908%, 4/25/2026 | 6,818,936 | |
TOTAL | 190,703,306 | ||
Financial Institution - Broker/Asset Mgr/Exchange—1.2% | |||
2,150,000 | CBOE Holdings, Inc., Sr. Unsecd. Note, 3.650%, 1/12/2027 | 2,058,629 | |
4,255,000 | FMR LLC, Bond, 144A, 7.570%, 6/15/2029 | 4,625,769 | |
2,250,000 | Jefferies Financial Group LLC, Sr. Unsecd. Note, 4.850%, 1/15/2027 | 2,188,722 | |
2,950,000 | Jefferies Group LLC, Sr. Unsecd. Note, 2.625%, 10/15/2031 | 2,302,662 | |
1,650,000 | Jefferies Group LLC, Sr. Unsecd. Note, 6.500%, 1/20/2043 | 1,641,075 | |
TOTAL | 12,816,857 | ||
Financial Institution - Finance Companies—0.9% | |||
2,015,000 | AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 1.750%, 1/30/2026 | 1,824,983 | |
1,650,000 | AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 3.400%, 10/29/2033 | 1,309,535 | |
3,050,000 | AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 4.625%, 10/15/2027 | 2,898,766 | |
600,000 | AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 4.875%, 1/16/2024 | 597,124 | |
3,050,000 | Air Lease Corp., Sr. Unsecd. Note, 3.625%, 12/1/2027 | 2,805,111 | |
TOTAL | 9,435,519 | ||
Financial Institution - Insurance - Health—1.2% | |||
2,500,000 | Elevance Health, Inc., Sr. Unsecd. Note, 1.500%, 3/15/2026 | 2,271,960 | |
3,595,000 | Elevance Health, Inc., Sr. Unsecd. Note, 4.550%, 5/15/2052 | 3,099,063 | |
740,000 | Elevance Health, Inc., Sr. Unsecd. Note, 5.850%, 1/15/2036 | 746,994 | |
4,250,000 | UnitedHealth Group, Inc., Sr. Unsecd. Note, 2.300%, 5/15/2031 | 3,555,441 | |
2,000,000 | UnitedHealth Group, Inc., Sr. Unsecd. Note, 3.875%, 8/15/2059 | 1,548,773 | |
2,000,000 | UnitedHealth Group, Inc., Sr. Unsecd. Note, 4.750%, 5/15/2052 | 1,824,535 | |
TOTAL | 13,046,766 | ||
Financial Institution - Insurance - Life—1.4% | |||
3,100,000 | Aflac, Inc., Sr. Unsecd. Note, 2.875%, 10/15/2026 | 2,893,737 | |
1,720,000 | Lincoln National Corp., Sr. Note, 7.000%, 6/15/2040 | 1,812,162 | |
700,000 | Massachusetts Mutual Life Insurance Co., Sub. Note, 144A, 5.375%, 12/1/2041 | 628,632 | |
710,000 | Massachusetts Mutual Life Insurance Co., Sub. Note, 144A, 8.875%, 6/1/2039 | 873,884 | |
1,000,000 | MetLife, Inc., Jr. Sub. Note, 10.750%, 8/1/2039 | 1,284,220 | |
700,000 | New York Life Insurance Co., Sub. Note, 144A, 6.750%, 11/15/2039 | 770,845 | |
4,000,000 | Pacific LifeCorp., Bond, 144A, 6.600%, 9/15/2033 | 4,273,014 | |
1,000,000 | Penn Mutual Life Insurance Co., Sr. Note, 144A, 7.625%, 6/15/2040 | 1,048,644 | |
1,530,000 | Prudential Financial, Inc., Sr. Unsecd. Note, Series MTN, 6.625%, 12/1/2037 | 1,688,632 | |
TOTAL | 15,273,770 | ||
Financial Institution - Insurance - P&C—0.9% | |||
1,210,000 | Berkshire Hathaway, Inc., Sr. Unsecd. Note, 3.125%, 3/15/2026 | 1,160,698 | |
1,000,000 | Hartford Financial Services Group, Inc., Sr. Unsecd. Note, 6.625%, 4/15/2042 | 996,423 | |
2,880,000 | Liberty Mutual Group, Inc., Sr. Unsecd. Note, 144A, 3.951%, 10/15/2050 | 2,054,067 | |
3,400,000 | Nationwide Mutual Insurance Co., Sub. Note, 144A, 9.375%, 8/15/2039 | 4,278,620 | |
1,000,000 | USF&G Corp., 8.312%, 7/1/2046 | 1,084,052 | |
TOTAL | 9,573,860 | ||
Financial Institution - REIT - Apartment—0.6% | |||
2,155,000 | Avalonbay Communities, Inc., Sr. Unsecd. Note, Series MTN, 3.350%, 5/15/2027 | 2,017,504 | |
2,000,000 | Mid-America Apartment Communities LP, Sr. Unsecd. Note, 3.750%, 6/15/2024 | 1,967,730 |
7
Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - REIT - Apartment—continued | |||
$ 1,225,000 | UDR, Inc., Sr. Unsecd. Note, 3.100%, 11/1/2034 | $ 967,053 | |
1,600,000 | UDR, Inc., Sr. Unsecd. Note, Series MTN, 2.950%, 9/1/2026 | 1,476,236 | |
TOTAL | 6,428,523 | ||
Financial Institution - REIT - Healthcare—0.4% | |||
1,250,000 | Health Care REIT, Inc., Sr. Unsecd. Note, 4.000%, 6/1/2025 | 1,212,224 | |
2,190,000 | Healthcare Trust of America, Sr. Unsecd. Note, 2.000%, 3/15/2031 | 1,688,936 | |
1,170,000 | Physicians Realty Trust, Sr. Unsecd. Note, 4.300%, 3/15/2027 | 1,118,609 | |
TOTAL | 4,019,769 | ||
Financial Institution - REIT - Office—0.5% | |||
2,730,000 | Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 1.875%, 2/1/2033 | 2,016,965 | |
1,570,000 | Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 3.950%, 1/15/2028 | 1,473,831 | |
2,380,000 | Boston Properties LP, Sr. Unsecd. Note, 3.200%, 1/15/2025 | 2,283,775 | |
TOTAL | 5,774,571 | ||
Financial Institution - REIT - Other—0.5% | |||
2,285,000 | Host Hotels & Resorts LP, Sr. Unsecd. Note, Series E, 4.000%, 6/15/2025 | 2,207,464 | |
2,275,000 | WP Carey, Inc., Sr. Unsecd. Note, 2.400%, 2/1/2031 | 1,820,981 | |
1,890,000 | WP Carey, Inc., Sr. Unsecd. Note, 4.600%, 4/1/2024 | 1,875,685 | |
TOTAL | 5,904,130 | ||
Financial Institution - REIT - Retail—0.3% | |||
1,730,000 | Kimco Realty Corp., Sr. Unsecd. Note, 3.800%, 4/1/2027 | 1,620,201 | |
1,860,000 | Tanger Properties LP, Sr. Unsecd. Note, 3.125%, 9/1/2026 | 1,689,826 | |
TOTAL | 3,310,027 | ||
Technology—6.6% | |||
5,825,000 | Apple, Inc., 1.650%, 5/11/2030 | 4,867,013 | |
5,700,000 | Apple, Inc., Sr. Unsecd. Note, 1.650%, 2/8/2031 | 4,674,191 | |
6,875,000 | Apple, Inc., Sr. Unsecd. Note, 2.800%, 2/8/2061 | 4,445,498 | |
1,897,000 | Broadcom, Inc., Sr. Unsecd. Note, 4.150%, 11/15/2030 | 1,735,451 | |
2,460,000 | Broadcom, Inc., Sr. Unsecd. Note, 144A, 3.137%, 11/15/2035 | 1,878,800 | |
103,000 | Broadcom, Inc., Sr. Unsecd. Note, 144A, 3.187%, 11/15/2036 | 77,465 | |
1,050,000 | Broadcom, Inc., Sr. Unsecd. Note, 144A, 3.750%, 2/15/2051 | 753,617 | |
1,370,000 | CDW LLC / CDW Finance, Sr. Unsecd. Note, 2.670%, 12/1/2026 | 1,243,988 | |
1,400,000 | Corning, Inc., Unsecd. Note, 4.750%, 3/15/2042 | 1,256,195 | |
1,565,000 | Dell International LLC / EMC Corp., 8.350%, 7/15/2046 | 1,921,300 | |
3,575,000 | Equifax, Inc., Sr. Unsecd. Note, 2.600%, 12/1/2024 | 3,438,445 | |
2,420,000 | Equifax, Inc., Sr. Unsecd. Note, 3.250%, 6/1/2026 | 2,270,339 | |
1,000,000 | Fiserv, Inc., Sr. Unsecd. Note, 3.200%, 7/1/2026 | 943,155 | |
2,210,000 | Fiserv, Inc., Sr. Unsecd. Note, 4.200%, 10/1/2028 | 2,110,724 | |
1,565,000 | Flextronics International Ltd., Sr. Unsecd. Note, 4.750%, 6/15/2025 | 1,534,109 | |
1,030,000 | Hewlett Packard Enterprise Co., Sr. Unsecd. Note, 4.900%, 10/15/2025 | 1,016,841 | |
3,970,000 | Keysight Technologies, Inc., Sr. Unsecd. Note, 3.000%, 10/30/2029 | 3,479,702 | |
3,325,000 | Keysight Technologies, Inc., Sr. Unsecd. Note, 4.550%, 10/30/2024 | 3,272,015 | |
3,235,000 | KLA Corp., Sr. Unsecd. Note, 4.650%, 7/15/2032 | 3,180,827 | |
1,746,000 | Lam Research Corp., Sr. Unsecd. Note, 3.750%, 3/15/2026 | 1,694,413 | |
1,730,000 | Lam Research Corp., Sr. Unsecd. Note, 4.000%, 3/15/2029 | 1,659,975 | |
2,500,000 | Micron Technology, Inc., Sr. Unsecd. Note, 4.663%, 2/15/2030 | 2,344,842 | |
7,040,000 | Microsoft Corp., Sr. Unsecd. Note, 2.675%, 6/1/2060 | 4,533,932 | |
6,000,000 | Oracle Corp., Sr. Unsecd. Note, 3.950%, 3/25/2051 | 4,389,376 | |
1,690,000 | Oracle Corp., Sr. Unsecd. Note, 6.150%, 11/9/2029 | 1,760,130 | |
2,250,000 | Oracle Corp., Sr. Unsecd. Note, 6.250%, 11/9/2032 | 2,355,804 | |
975,000 | SAIC, Inc., Company Guarantee, Series 1, 5.950%, 12/1/2040 | 878,491 |
8
Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Technology—continued | |||
$ 1,140,000 | Total System Services, Inc., Sr. Unsecd. Note, 4.450%, 6/1/2028 | $ 1,075,894 | |
445,000 | Total System Services, Inc., Sr. Unsecd. Note, 4.800%, 4/1/2026 | 435,320 | |
150,000 | Verisk Analytics, Inc., Sr. Unsecd. Note, 4.125%, 3/15/2029 | 142,955 | |
2,490,000 | Verisk Analytics, Inc., Sr. Unsecd. Note, 5.500%, 6/15/2045 | 2,306,994 | |
200,000 | Verisk Analytics, Inc., Unsecd. Note, 4.000%, 6/15/2025 | 194,607 | |
5,510,000 | VMware, Inc., Sr. Unsecd. Note, 2.200%, 8/15/2031 | 4,298,705 | |
TOTAL | 72,171,113 | ||
Technology Services—0.2% | |||
1,285,000 | Fortinet, Inc., Sr. Unsecd. Note, 1.000%, 3/15/2026 | 1,150,114 | |
650,000 | Verisign, Inc., Sr. Unsecd. Note, 2.700%, 6/15/2031 | 532,620 | |
TOTAL | 1,682,734 | ||
Transportation - Railroads—1.3% | |||
3,095,000 | Burlington Northern Santa Fe Corp., Deb., 5.750%, 5/1/2040 | 3,235,407 | |
2,265,000 | Canadian Pacific Railway Co., Sr. Unsecd. Note, 2.900%, 2/1/2025 | 2,182,238 | |
1,240,000 | Canadian Pacific Railway Co., Sr. Unsecd. Note, 3.000%, 12/2/2041 | 1,030,265 | |
2,060,000 | Canadian Pacific Railway Co., Sr. Unsecd. Note, 4.700%, 5/1/2048 | 1,811,137 | |
5,710,000 | Union Pacific Corp., Sr. Unsecd. Note, 2.800%, 2/14/2032 | 4,883,874 | |
2,325,000 | Union Pacific Corp., Sr. Unsecd. Note, 2.973%, 9/16/2062 | 1,433,497 | |
TOTAL | 14,576,418 | ||
Transportation - Services—1.8% | |||
4,440,000 | Enterprise Rent-A-Car USA Finance Co., Sr. Unsecd. Note, 144A, 5.625%, 3/15/2042 | 4,383,830 | |
1,220,000 | FedEx Corp., Sr. Unsecd. Note, 3.100%, 8/5/2029 | 1,094,158 | |
2,325,000 | FedEx Corp., Sr. Unsecd. Note, 4.050%, 2/15/2048 | 1,813,217 | |
2,340,000 | GXO Logistics, Inc., Sr. Unsecd. Note, Series WI, 1.650%, 7/15/2026 | 2,073,591 | |
2,270,000 | GXO Logistics, Inc., Sr. Unsecd. Note, Series WI, 2.650%, 7/15/2031 | 1,780,104 | |
3,275,000 | Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 2.900%, 12/1/2026 | 3,018,556 | |
2,540,000 | Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 3.875%, 12/1/2023 | 2,527,144 | |
3,675,000 | United Parcel Service, Inc., Sr. Unsecd. Note, 3.050%, 11/15/2027 | 3,444,230 | |
TOTAL | 20,134,830 | ||
Utility - Electric—4.3% | |||
990,000 | Ameren Corp., Sr. Unsecd. Note, 1.950%, 3/15/2027 | 890,652 | |
990,000 | Ameren Corp., Sr. Unsecd. Note, 3.650%, 2/15/2026 | 947,682 | |
1,105,000 | American Electric Power Co., Inc., Jr. Sub. Note, 2.031%, 3/15/2024 | 1,081,429 | |
2,500,000 | American Electric Power Co., Inc., Sr. Unsecd. Note, 3.200%, 11/13/2027 | 2,317,440 | |
1,705,000 | Black Hills Corp., Sr. Unsecd. Note, 2.500%, 6/15/2030 | 1,397,212 | |
1,530,000 | Cleveland Electric Illuminating Co., Sr. Unsecd. Note, 5.950%, 12/15/2036 | 1,514,637 | |
1,233,000 | Consolidated Edison Co., Sr. Unsecd. Note, 4.625%, 12/1/2054 | 1,049,860 | |
900,000 | Constellation Energy Generation LLC, Sr. Unsecd. Note, 5.750%, 10/1/2041 | 861,931 | |
4,915,000 | Dominion Energy, Inc., Sr. Unsecd. Note, Series C, 3.375%, 4/1/2030 | 4,338,223 | |
1,210,000 | Duke Energy Corp., Sr. Unsecd. Note, 2.650%, 9/1/2026 | 1,119,991 | |
1,330,000 | Duke Energy Corp., Sr. Unsecd. Note, 3.750%, 9/1/2046 | 974,534 | |
100,000 | Duke Energy Indiana, Inc., 1st Mtg. Bond, 6.350%, 8/15/2038 | 106,965 | |
1,950,000 | EDP Finance BV, Sr. Unsecd. Note, 144A, 3.625%, 7/15/2024 | 1,909,890 | |
840,000 | Emera US Finance LP, Sr. Unsecd. Note, 3.550%, 6/15/2026 | 795,082 | |
1,280,000 | Emera US Finance LP, Sr. Unsecd. Note, 4.750%, 6/15/2046 | 1,003,247 | |
2,950,000 | Enel Finance International NV, Sr. Unsecd. Note, 144A, 3.500%, 4/6/2028 | 2,686,976 | |
750,000 | Enel Finance International NV, Sr. Unsecd. Note, 144A, 4.875%, 6/14/2029 | 717,825 | |
5,050,000 | Exelon Corp., Sr. Unsecd. Note, 4.100%, 3/15/2052 | 3,914,900 | |
2,350,000 | Fortis, Inc. / Canada, Sr. Unsecd. Note, 3.055%, 10/4/2026 | 2,180,928 | |
6,830,000 | NextEra Energy Capital Holdings, Inc., Sr. Unsecd. Note, 3.550%, 5/1/2027 | 6,441,048 |
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Principal Amount or Shares | Value | ||
CORPORATE BONDS—continued | |||
Utility - Electric—continued | |||
$ 715,000 | NiSource Finance Corp., Sr. Unsecd. Note, 4.375%, 5/15/2047 | $ 587,339 | |
875,000 | Puget Energy, Inc., Sec. Fac. Bond, 2.379%, 6/15/2028 | 755,923 | |
3,185,000 | Southern Co., Sr. Unsecd. Note, 3.250%, 7/1/2026 | 3,014,368 | |
2,000,000 | Southwestern Electric Power Co., Sr. Unsecd. Note, Series K, 2.750%, 10/1/2026 | 1,851,011 | |
2,595,000 | Virginia Electric & Power Co., Sr. Unsecd. Note, Series B, 3.750%, 5/15/2027 | 2,478,342 | |
2,475,000 | Xcel Energy, Inc., Sr. Unsecd. Note, 4.600%, 6/1/2032 | 2,312,818 | |
TOTAL | 47,250,253 | ||
Utility - Natural Gas—0.9% | |||
1,730,000 | National Fuel Gas Co., Sr. Unsecd. Note, 2.950%, 3/1/2031 | 1,393,705 | |
2,130,000 | National Fuel Gas Co., Sr. Unsecd. Note, 5.500%, 1/15/2026 | 2,111,710 | |
4,900,000 | Sempra Energy, Sr. Unsecd. Note, 3.700%, 4/1/2029 | 4,477,670 | |
1,300,000 | Sempra Energy, Sr. Unsecd. Note, 6.000%, 10/15/2039 | 1,302,418 | |
TOTAL | 9,285,503 | ||
Utility - Natural Gas Distributor—0.1% | |||
815,000 | Southern Co. Gas Capital, Sr. Unsecd. Note, 3.950%, 10/1/2046 | 607,957 | |
TOTAL CORPORATE BONDS (IDENTIFIED COST $989,585,417) | 882,895,627 | ||
U.S. TREASURY—3.2% | |||
U.S. Treasury Notes—3.2% | |||
35,000,000 | United States Treasury Note, 4.125%, 11/15/2032 (IDENTIFIED COST $36,340,678) | 34,975,531 | |
MUNICIPAL BOND—0.1% | |||
Municipal Services—0.1% | |||
775,000 | Tampa, FL Sports Authority, (National Public Finance Guarantee Corporation GTD), 8.020%, 10/1/2026 (IDENTIFIED COST $777,352) | 782,869 | |
COLLATERALIZED MORTGAGE OBLIGATION—0.0% | |||
Federal Home Loan Mortgage Corporation—0.0% | |||
16,034 | Federal Home Loan Mortgage Corp. REMIC, Series 3051, Class MY, 5.500%, 10/15/2025 (IDENTIFIED COST $15,963) | 15,867 | |
MORTGAGE-BACKED SECURITIES—0.0% | |||
Federal Home Loan Mortgage Corporation—0.0% | |||
241 | Federal Home Loan Mortgage Corp., Pool C00702, 6.000%, 1/1/2029 | 241 | |
269 | Federal Home Loan Mortgage Corp., Pool C00748, 6.000%, 4/1/2029 | 271 | |
224 | Federal Home Loan Mortgage Corp., Pool C20263, 6.000%, 1/1/2029 | 224 | |
333 | Federal Home Loan Mortgage Corp., Pool C25621, 6.500%, 5/1/2029 | 340 | |
TOTAL | 1,076 | ||
Federal National Mortgage Association—0.0% | |||
471 | Federal National Mortgage Association, Pool 323159, 7.500%, 4/1/2028 | 481 | |
283 | Federal National Mortgage Association, Pool 421223, 7.000%, 5/1/2028 | 291 | |
2,742 | Federal National Mortgage Association, Pool 439947, 6.500%, 11/1/2028 | 2,785 | |
1,125 | Federal National Mortgage Association, Pool 489867, 6.500%, 3/1/2029 | 1,142 | |
TOTAL | 4,699 | ||
Government National Mortgage Association—0.0% | |||
102 | Government National Mortgage Association, Pool 449491, 7.500%, 12/15/2027 | 104 | |
213 | Government National Mortgage Association, Pool 486467, 7.000%, 8/15/2028 | 216 | |
3 | Government National Mortgage Association, Pool 780339, 8.000%, 12/15/2023 | 3 | |
2 | Government National Mortgage Association, Pool 780373, 7.000%, 12/15/2023 | 2 | |
TOTAL | 325 | ||
TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $5,985) | 6,100 |
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Principal Amount or Shares | Value | ||
PREFERRED STOCK—0.0% | |||
Financials—0.0% | |||
130,000 | 2,3,4 | Lehman Brothers Holdings, Inc., Pfd., 5.670% (IDENTIFIED COST $11,050) | $ 1,300 |
INVESTMENT COMPANIES—15.0% | |||
80,329,613 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 5.43%5 | 80,329,613 | |
15,576,520 | High Yield Bond Core Fund | 84,113,209 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $170,075,272) | 164,442,822 | ||
TOTAL INVESTMENT IN SECURITIES—99.0% (IDENTIFIED COST $1,196,811,717) | 1,083,120,116 | ||
OTHER ASSETS AND LIABILITIES - NET—1.0%6 | 11,050,149 | ||
TOTAL NET ASSETS—100% | $1,094,170,265 |
At August 31, 2023, the Fund had the following outstanding futures contracts:
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized Appreciation |
Long Futures: | ||||
United States Treasury Notes Long Futures | 40 | $4,867,500 | December 2023 | $57,297 |
The average notional value of long and short futures contracts held by the Fund throughout the period was $2,005,500 and $5,434,734, respectively. This is based on the contracts held as of each month-end throughout the nine-month fiscal period.
Net Unrealized Appreciation on Futures Contracts is included in “Other Assets and Liabilities—Net.”
Transactions with affiliated investment companies, which are funds managed by the Adviser or an affiliate of the Adviser, during the period ended August 31, 2023, were as follows:
Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | High Yield Bond Core Fund | Total of Affiliated Transactions | |
Value as of 11/30/2022 | $10,613,780 | $72,493,390 | $83,107,170 |
Purchases at Cost | $207,393,250 | $10,000,000 | $217,393,250 |
Proceeds from Sales | $(137,689,019) | $— | $(137,689,019) |
Change in Unrealized Appreciation/Depreciation | $11,669 | $1,619,819 | $1,631,488 |
Net Realized Gain/(Loss) | $(67) | $— | $(67) |
Value as of 8/31/2023 | $80,329,613 | $84,113,209 | $164,442,822 |
Shares Held as of 8/31/2023 | 80,329,613 | 15,576,520 | 95,906,133 |
Dividend Income | $2,468,744 | $3,917,401 | $6,386,145 |
1 | Floating/variable note with current rate and current maturity or next reset date shown. |
2 | Market quotations and price valuations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established by and under the supervision of the Fund’s Adviser acting through its Valuation Committee. |
3 | Issuer in default. |
4 | Non-income-producing security. |
5 | 7-day net yield. |
6 | Assets, other than investments in securities, less liabilities. |
Note: The categories of investments are shown as a percentage of total net assets at August 31, 2023.
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
◾ Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by Federated Investment Management Company (the “Adviser”).
◾ Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.
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◾ Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and ask quotations.
◾ Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser.
◾ For securities that are fair valued in accordance with procedures established by and under the general supervision of the Adviser, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.
If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Adviser’s valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion of the Adviser’s valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.
Fair Valuation and Significant Events Procedures
Pursuant to Rule 2a-5 under the Investment Company Act, the Directors have designated the Adviser as the Fund’s valuation designee to perform any fair value determinations for securities and other assets held by the Fund. The Adviser is subject to the Directors’ oversight and certain reporting and other requirements intended to provide the Directors the information needed to oversee the Adviser’s fair value determinations.
The Adviser, acting through its Valuation Committee, is responsible for determining the fair value of investments for which market quotations are not readily available. The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser’s affiliated companies and determines fair value and oversees the calculation of the NAV. The Valuation Committee is also authorized to use pricing services to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Adviser. The Directors periodically review the fair valuations made by the Valuation Committee. The Directors have also approved the Adviser’s fair valuation and significant events procedures as part of the Fund’s compliance program and will review any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and ask for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Adviser.
The Adviser has also adopted procedures requiring an investment to be priced at its fair value whenever the Valuation Committee determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
◾ 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.
The Adviser has adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Valuation Committee will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Adviser. The Directors periodically review fair valuations made in response to significant events.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
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Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used, as of August 31, 2023, in valuing the Fund’s assets carried at fair value:
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
Corporate Bonds | $— | $882,788,560 | $107,067 | $882,895,627 |
U.S. Treasury | — | 34,975,531 | — | 34,975,531 |
Municipal Bond | — | 782,869 | — | 782,869 |
Collateralized Mortgage Obligation | — | 15,867 | — | 15,867 |
Mortgage-Backed Securities | — | 6,100 | — | 6,100 |
Equity Security: | ||||
Preferred Stock | ||||
Domestic | — | — | 1,300 | 1,300 |
Investment Companies | 164,442,822 | — | — | 164,442,822 |
TOTAL SECURITIES | $164,442,822 | $918,568,927 | $108,367 | $1,083,120,116 |
Other Financial Instruments:1 | ||||
Assets | $57,297 | $— | $— | $57,297 |
TOTAL OTHER FINANCIAL INSTRUMENTS | $57,297 | $— | $— | $57,297 |
1 | Other financial instruments are futures contracts. |
The following acronym(s) are used throughout this portfolio: | ||
BKNT | —Bank Notes | |
GMTN | —Global Medium Term Note | |
GTD | —Guaranteed | |
MTN | —Medium Term Note | |
REIT | —Real Estate Investment Trust | |
REMIC | —Real Estate Mortgage Investment Conduit | |
SOFR | —Secured Overnight Financing Rate |
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