Federated Hermes Quality Bond Fund II
Portfolio of Investments
March 31, 2022 (unaudited)
Principal Amount | Value | ||
CORPORATE BONDS—97.3% | |||
Basic Industry - Chemicals—0.3% | |||
$ 500,000 | RPM International, Inc., Sr. Unsecd. Note, 4.550%, 3/1/2029 | $ 523,975 | |
Basic Industry - Metals & Mining—1.5% | |||
350,000 | Anglo American Capital PLC, Sr. Unsecd. Note, 144A, 2.250%, 3/17/2028 | 320,296 | |
400,000 | Anglo American Capital PLC, Sr. Unsecd. Note, 144A, 2.875%, 3/17/2031 | 369,254 | |
230,000 | Carpenter Technology Corp., Sr. Unsecd. Note, 4.450%, 3/1/2023 | 234,399 | |
350,000 | Glencore Funding LLC, Sr. Unsecd. Note, 144A, 1.625%, 4/27/2026 | 323,702 | |
150,000 | Glencore Funding LLC, Sr. Unsecd. Note, 144A, 2.850%, 4/27/2031 | 137,225 | |
1,000,000 | Reliance Steel & Aluminum Co., Sr. Unsecd. Note, 4.500%, 4/15/2023 | 1,020,329 | |
TOTAL | 2,405,205 | ||
Capital Goods - Aerospace & Defense—3.5% | |||
600,000 | Airbus Group SE, Sr. Unsecd. Note, 144A, 3.150%, 4/10/2027 | 596,775 | |
280,000 | BAE Systems Holdings, Inc., Sr. Unsecd. Note, 144A, 3.850%, 12/15/2025 | 281,293 | |
200,000 | BAE Systems PLC, Sr. Unsecd. Note, 144A, 3.400%, 4/15/2030 | ��� 197,349 | |
450,000 | Boeing Co., Sr. Unsecd. Note, 1.875%, 6/15/2023 | 444,705 | |
600,000 | Boeing Co., Sr. Unsecd. Note, 2.700%, 2/1/2027 | 576,423 | |
584,000 | Boeing Co., Sr. Unsecd. Note, 2.950%, 2/1/2030 | 541,876 | |
275,000 | General Dynamics Corp., Sr. Unsecd. Note, 3.250%, 4/1/2025 | 278,148 | |
410,000 | Huntington Ingalls Industries, Inc., Sr. Unsecd. Note, 3.483%, 12/1/2027 | 404,473 | |
145,000 | Huntington Ingalls Industries, Inc., Sr. Unsecd. Note, Series WI, 3.844%, 5/1/2025 | 146,730 | |
600,000 | Leidos, Inc., Sr. Unsecd. Note, Series WI, 2.300%, 2/15/2031 | 521,262 | |
335,000 | Leidos, Inc., Sr. Unsecd. Note, Series WI, 3.625%, 5/15/2025 | 335,317 | |
800,000 | Raytheon Technologies Corp., Sr. Unsecd. Note, 4.125%, 11/16/2028 | 837,400 | |
460,000 | 1 | Textron Financial Corp., Jr. Sub. Note, 144A, 2.241% (3-month USLIBOR +1.735%), 2/15/2042 | 359,950 |
295,000 | Textron, Inc., Sr. Unsecd. Note, 4.300%, 3/1/2024 | 301,941 | |
TOTAL | 5,823,642 | ||
Capital Goods - Building Materials—1.2% | |||
165,000 | Allegion PLC, Sr. Unsecd. Note, 3.500%, 10/1/2029 | 159,930 | |
800,000 | Allegion US Holdings Co., Inc., Sr. Unsecd. Note, 3.200%, 10/1/2024 | 790,978 | |
540,000 | Carrier Global Corp., Sr. Unsecd. Note, 2.722%, 2/15/2030 | 508,128 | |
300,000 | Masco Corp., Sr. Unsecd. Note, 2.000%, 10/1/2030 | 260,168 | |
300,000 | Masco Corp., Sr. Unsecd. Note, 3.500%, 11/15/2027 | 300,165 | |
TOTAL | 2,019,369 | ||
Capital Goods - Construction Machinery—1.8% | |||
500,000 | Ashtead Capital, Inc., Sr. Unsecd. Note, 144A, 1.500%, 8/12/2026 | 454,491 | |
600,000 | CNH Industrial Capital America LLC, Sr. Unsecd. Note, 1.450%, 7/15/2026 | 551,788 | |
250,000 | CNH Industrial Capital America LLC, Sr. Unsecd. Note, 1.875%, 1/15/2026 | 236,998 | |
195,000 | CNH Industrial Capital America LLC, Sr. Unsecd. Note, 1.950%, 7/2/2023 | 193,074 | |
500,000 | CNH Industrial Capital America LLC, Sr. Unsecd. Note, 4.375%, 4/5/2022 | 500,038 | |
595,000 | CNH Industrial NV, Sr. Unsecd. Note, Series MTN, 3.850%, 11/15/2027 | 598,251 | |
510,000 | Weir Group PLC/The, Sr. Unsecd. Note, 144A, 2.200%, 5/13/2026 | 477,019 | |
TOTAL | 3,011,659 | ||
Capital Goods - Diversified Manufacturing—4.2% | |||
750,000 | CK Hutchison Holdings Ltd., Sr. Unsecd. Note, 144A, 2.750%, 3/29/2023 | 752,616 | |
950,000 | GE Capital Funding LLC, Sr. Unsecd. Note, 4.400%, 5/15/2030 | 969,753 | |
205,000 | Honeywell International, Inc., Sr. Unsecd. Note, 1.350%, 6/1/2025 | 197,687 | |
400,000 | Honeywell International, Inc., Sr. Unsecd. Note, 1.950%, 6/1/2030 | 369,828 |
1
Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Capital Goods - Diversified Manufacturing—continued | |||
$ 555,000 | Hubbell, Inc., Sr. Unsecd. Note, 2.300%, 3/15/2031 | $ 505,488 | |
585,000 | Lennox International, Inc., Sr. Unsecd. Note, 1.700%, 8/1/2027 | 538,108 | |
1,000,000 | Lennox International, Inc., Sr. Unsecd. Note, 3.000%, 11/15/2023 | 1,001,647 | |
430,000 | Roper Technologies, Inc., Sr. Unsecd. Note, 2.000%, 6/30/2030 | 382,275 | |
250,000 | Roper Technologies, Inc., Sr. Unsecd. Note, 3.650%, 9/15/2023 | 253,591 | |
875,000 | Roper Technologies, Inc., Sr. Unsecd. Note, 3.800%, 12/15/2026 | 897,008 | |
500,000 | Vontier Corp., Sr. Unsecd. Note, Series WI, 2.400%, 4/1/2028 | 440,710 | |
500,000 | Vontier Corp., Sr. Unsecd. Note, 2.950%, 4/1/2031 | 445,143 | |
235,000 | Wabtec Corp., Sr. Unsecd. Note, 3.200%, 6/15/2025 | 229,676 | |
TOTAL | 6,983,530 | ||
Capital Goods - Packaging—0.3% | |||
500,000 | WestRock Co., Sr. Unsecd. Note, Series WI, 3.750%, 3/15/2025 | 505,630 | |
Communications - Cable & Satellite—2.4% | |||
1,000,000 | CCO Safari II LLC, 4.908%, 7/23/2025 | 1,037,978 | |
550,000 | Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., Sec. Fac. Bond, 2.800%, 4/1/2031 | 496,538 | |
900,000 | Comcast Corp., Sr. Unsecd. Note, 2.350%, 1/15/2027 | 876,181 | |
300,000 | Comcast Corp., Sr. Unsecd. Note, 3.300%, 2/1/2027 | 304,670 | |
750,000 | Comcast Corp., Sr. Unsecd. Note, 3.950%, 10/15/2025 | 775,190 | |
400,000 | Time Warner Cable, Inc., Sr. Unsecd. Note, 8.375%, 3/15/2023 | 421,344 | |
TOTAL | 3,911,901 | ||
Communications - Media & Entertainment—1.0% | |||
300,000 | British Sky Broadcasting Group PLC, 144A, 3.750%, 9/16/2024 | 305,174 | |
132,000 | Discovery Communications LLC, Sr. Unsecd. Note, 2.950%, 3/20/2023 | 132,354 | |
500,000 | 2 | Netflix, Inc., Sr. Unsecd. Note, 4.375%, 11/15/2026 | 520,735 |
310,000 | Paramount Global, Sr. Unsecd. Note, 4.200%, 5/19/2032 | 311,030 | |
305,000 | S&P Global, Inc., Sr. Unsecd. Note, 144A, 2.900%, 3/1/2032 | 296,089 | |
TOTAL | 1,565,382 | ||
Communications - Telecom Wireless—1.8% | |||
500,000 | American Tower Corp., Sr. Unsecd. Note, 1.450%, 9/15/2026 | 456,950 | |
600,000 | American Tower Corp., Sr. Unsecd. Note, 3.500%, 1/31/2023 | 605,835 | |
300,000 | Crown Castle International Corp., 3.150%, 7/15/2023 | 302,156 | |
180,000 | Crown Castle International Corp., Sr. Unsecd. Note, 2.250%, 1/15/2031 | 158,921 | |
200,000 | Crown Castle International Corp., Sr. Unsecd. Note, 4.450%, 2/15/2026 | 206,201 | |
450,000 | T-Mobile USA, Inc., Term Loan - 1st Lien, 3.750%, 4/15/2027 | 453,384 | |
450,000 | T-Mobile USA, Inc., Sec. Fac. Bond, 3.875%, 4/15/2030 | 452,368 | |
395,000 | Vodafone Group PLC, Sr. Unsecd. Note, 4.125%, 5/30/2025 | 407,128 | |
TOTAL | 3,042,943 | ||
Communications - Telecom Wirelines—1.9% | |||
300,000 | AT&T, Inc., Sr. Unsecd. Note, 2.300%, 6/1/2027 | 286,343 | |
877,000 | AT&T, Inc., Sr. Unsecd. Note, 2.550%, 12/1/2033 | 780,916 | |
450,000 | AT&T, Inc., Sr. Unsecd. Note, 3.400%, 5/15/2025 | 451,176 | |
250,000 | Telefonica SA, Company Guarantee, 7.045%, 6/20/2036 | 313,722 | |
300,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 0.850%, 11/20/2025 | 277,930 | |
800,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 1.750%, 1/20/2031 | 698,607 | |
110,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 2.550%, 3/21/2031 | 102,349 | |
175,000 | Verizon Communications, Inc., Sr. Unsecd. Note, 3.150%, 3/22/2030 | 172,332 | |
TOTAL | 3,083,375 | ||
Consumer Cyclical - Automotive—4.4% | |||
1,000,000 | Daimler Finance NA LLC, Sr. Unsecd. Note, 144A, 3.250%, 8/1/2024 | 1,002,340 | |
605,000 | Daimler Trucks Financial NA, Sr. Unsecd. Note, 144A, 2.000%, 12/14/2026 | 564,248 | |
250,000 | Ford Motor Co., Sr. Unsecd. Note, 4.346%, 12/8/2026 | 251,794 |
2
Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Consumer Cyclical - Automotive—continued | |||
$ 420,000 | General Motors Co., Sr. Unsecd. Note, 4.000%, 4/1/2025 | $ 424,322 | |
250,000 | General Motors Co., Sr. Unsecd. Note, 6.125%, 10/1/2025 | 268,615 | |
500,000 | General Motors Financial Co., Inc., 1.250%, 1/8/2026 | 458,159 | |
500,000 | 2 | General Motors Financial Co., Inc., Sr. Unsecd. Note, 2.400%, 4/10/2028 | 453,498 |
300,000 | General Motors Financial Co., Inc., Sr. Unsecd. Note, 4.000%, 10/6/2026 | 301,361 | |
350,000 | Hyundai Capital America, Sr. Unsecd. Note, 144A, 1.000%, 9/17/2024 | 329,488 | |
580,000 | Hyundai Capital America, Sr. Unsecd. Note, 144A, 1.300%, 1/8/2026 | 532,024 | |
680,000 | Nissan Motor Acceptance Company LLC., Sr. Unsecd. Note, 144A, 1.125%, 9/16/2024 | 636,542 | |
200,000 | Stellantis Finance US, Inc., 144A, 1.711%, 1/29/2027 | 182,616 | |
500,000 | Stellantis N.V., Sr. Unsecd. Note, 5.250%, 4/15/2023 | 510,978 | |
650,000 | Volkswagen Group of America Finance LLC, Sr. Unsecd. Note, 144A, 0.875%, 11/22/2023 | 628,084 | |
500,000 | Volkswagen Group of America Finance LLC, Sr. Unsecd. Note, 144A, 1.250%, 11/24/2025 | 461,456 | |
300,000 | Volkswagen Group of America Finance LLC, Sr. Unsecd. Note, 144A, 4.250%, 11/13/2023 | 305,724 | |
TOTAL | 7,311,249 | ||
Consumer Cyclical - Leisure—0.5% | |||
355,000 | Magallanes, Inc., Sr. Unsecd. Note, 144A, 3.755%, 3/15/2027 | 354,946 | |
500,000 | Magallanes, Inc., Sr. Unsecd. Note, 144A, 4.054%, 3/15/2029 | 503,058 | |
TOTAL | 858,004 | ||
Consumer Cyclical - Retailers—3.8% | |||
1,000,000 | Advance Auto Parts, Inc., Sr. Unsecd. Note, Series WI, 3.900%, 4/15/2030 | 998,153 | |
470,000 | Alimentation Couche-Tard, Inc., Sr. Unsecd. Note, 144A, 2.950%, 1/25/2030 | 449,032 | |
665,000 | AutoNation, Inc., Sr. Unsecd. Note, 4.750%, 6/1/2030 | 694,447 | |
275,000 | Costco Wholesale Corp., Sr. Unsecd. Note, 1.375%, 6/20/2027 | 255,937 | |
1,290,000 | CVS Health Corp., Sr. Unsecd. Note, 4.300%, 3/25/2028 | 1,351,672 | |
200,000 | Dollar General Corp., Sr. Unsecd. Note, 4.150%, 11/1/2025 | 206,927 | |
500,000 | Dollar Tree, Inc., Sr. Unsecd. Note, 4.000%, 5/15/2025 | 512,026 | |
500,000 | Home Depot, Inc., Sr. Unsecd. Note, 2.125%, 9/15/2026 | 486,209 | |
410,000 | Home Depot, Inc., Sr. Unsecd. Note, 2.875%, 4/15/2027 | 408,757 | |
320,000 | O’Reilly Automotive, Inc., Sr. Unsecd. Note, 1.750%, 3/15/2031 | 273,753 | |
120,000 | O’Reilly Automotive, Inc., Sr. Unsecd. Note, 4.200%, 4/1/2030 | 124,257 | |
580,000 | Tractor Supply Co., Sr. Unsecd. Note, 1.750%, 11/1/2030 | 499,040 | |
TOTAL | 6,260,210 | ||
Consumer Cyclical - Services—1.8% | |||
200,000 | 2 | Alibaba Group Holding Ltd., Sr. Unsecd. Note, 2.125%, 2/9/2031 | 174,169 |
500,000 | Alibaba Group Holding Ltd., Sr. Unsecd. Note, 3.400%, 12/6/2027 | 491,198 | |
170,000 | Amazon.com, Inc., Sr. Unsecd. Note, 3.150%, 8/22/2027 | 172,402 | |
400,000 | Booking Holdings, Inc., Sr. Unsecd. Note, 4.625%, 4/13/2030 | 434,436 | |
750,000 | Cintas Corp. No. 2, Sr. Unsecd. Note, 3.700%, 4/1/2027 | 768,795 | |
500,000 | Expedia Group, Inc., Sr. Unsecd. Note, Series WI, 2.950%, 3/15/2031 | 463,750 | |
530,000 | Visa, Inc., Sr. Unsecd. Note, 3.150%, 12/14/2025 | 536,480 | |
TOTAL | 3,041,230 | ||
Consumer Non-Cyclical - Food/Beverage—5.1% | |||
750,000 | Anheuser-Busch InBev Worldwide, Inc., Sr. Unsecd. Note, 4.750%, 1/23/2029 | 813,863 | |
1,015,000 | Coca-Cola Femsa S.A.B. de C.V., Sr. Unsecd. Note, 2.750%, 1/22/2030 | 973,192 | |
750,000 | Constellation Brands, Inc., Sr. Unsecd. Note, 4.650%, 11/15/2028 | 792,113 | |
200,000 | Flowers Foods, Inc., Sr. Unsecd. Note, 2.400%, 3/15/2031 | 179,719 | |
380,000 | Flowers Foods, Inc., Sr. Unsecd. Note, 3.500%, 10/1/2026 | 383,869 | |
500,000 | Grupo Bimbo S.A.B. de CV, Sr. Unsecd. Note, 144A, 3.875%, 6/27/2024 | 510,789 | |
915,000 | International Flavors & Fragrances, Inc., Sr. Unsecd. Note, 144A, 1.230%, 10/1/2025 | 848,089 | |
176,000 | Keurig Dr Pepper, Inc., Sr. Unsecd. Note, 4.057%, 5/25/2023 | 179,158 | |
450,000 | Keurig Dr Pepper, Inc., Sr. Unsecd. Note, 4.417%, 5/25/2025 | 465,517 |
3
Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Consumer Non-Cyclical - Food/Beverage—continued | |||
$ 417,000 | Kraft Heinz Foods Co., Sr. Unsecd. Note, 3.000%, 6/1/2026 | $ 411,877 | |
900,000 | Kraft Heinz Foods Co., Sr. Unsecd. Note, Series WI, 3.875%, 5/15/2027 | 915,408 | |
300,000 | Smithfield Foods, Inc., 144A, 2.625%, 9/13/2031 | 263,952 | |
510,000 | Smithfield Foods, Inc., Sr. Unsecd. Note, 144A, 3.000%, 10/15/2030 | 463,589 | |
60,000 | Smithfield Foods, Inc., Sr. Unsecd. Note, 144A, 4.250%, 2/1/2027 | 60,751 | |
450,000 | Sysco Corp., Sr. Unsecd. Note, 3.250%, 7/15/2027 | 448,347 | |
700,000 | Sysco Corp., Sr. Unsecd. Note, 3.300%, 7/15/2026 | 704,089 | |
TOTAL | 8,414,322 | ||
Consumer Non-Cyclical - Health Care—1.6% | |||
440,000 | Agilent Technologies, Inc., Sr. Unsecd. Note, 3.875%, 7/15/2023 | 446,793 | |
250,000 | Becton Dickinson & Co., Sr. Unsecd. Note, 3.700%, 6/6/2027 | 254,025 | |
203,000 | Becton Dickinson & Co., Sr. Unsecd. Note, 3.734%, 12/15/2024 | 206,466 | |
235,000 | DH Europe Finance II S.a.r.l., Sr. Unsecd. Note, 2.600%, 11/15/2029 | 224,277 | |
470,000 | DH Europe Finance II S.a.r.l., Sr. Unsecd. Note, Series 5YR, 2.200%, 11/15/2024 | 460,803 | |
85,000 | HCA, Inc., Sec. Fac. Bond, 144A, 3.125%, 3/15/2027 | 83,187 | |
255,000 | PerkinElmer, Inc., Sr. Unsecd. Note, 1.900%, 9/15/2028 | 231,001 | |
330,000 | PerkinElmer, Inc., Sr. Unsecd. Note, 2.550%, 3/15/2031 | 303,254 | |
450,000 | PerkinElmer, Inc., Sr. Unsecd. Note, 3.300%, 9/15/2029 | 439,411 | |
TOTAL | 2,649,217 | ||
Consumer Non-Cyclical - Pharmaceuticals—3.5% | |||
210,000 | Abbott Laboratories, Sr. Unsecd. Note, 3.400%, 11/30/2023 | 213,553 | |
453,000 | Abbott Laboratories, Sr. Unsecd. Note, 3.750%, 11/30/2026 | 470,605 | |
455,000 | AbbVie, Inc., Sr. Unsecd. Note, 3.200%, 11/21/2029 | 450,077 | |
300,000 | AbbVie, Inc., Sr. Unsecd. Note, 3.600%, 5/14/2025 | 304,224 | |
67,000 | AbbVie, Inc., Sr. Unsecd. Note, 4.750%, 3/15/2045 | 73,226 | |
235,000 | AstraZeneca PLC, Sr. Unsecd. Note, 0.700%, 4/8/2026 | 215,066 | |
600,000 | AstraZeneca PLC, Sr. Unsecd. Note, 3.125%, 6/12/2027 | 604,539 | |
1,000,000 | Bayer US Finance II LLC, Sr. Unsecd. Note, 144A, 3.875%, 12/15/2023 | 1,010,869 | |
200,000 | Bayer US Finance II LLC, Sr. Unsecd. Note, 144A, 4.250%, 12/15/2025 | 203,593 | |
235,000 | Biogen, Inc., Sr. Unsecd. Note, 2.250%, 5/1/2030 | 211,779 | |
600,000 | Biogen, Inc., Sr. Unsecd. Note, 4.050%, 9/15/2025 | 616,090 | |
152,000 | 2 | Bristol-Myers Squibb Co., Sr. Unsecd. Note, Series WI, 5.000%, 8/15/2045 | 179,737 |
220,000 | Gilead Sciences, Inc., Sr. Unsecd. Note, 3.650%, 3/1/2026 | 223,950 | |
670,000 | Regeneron Pharmaceuticals, Inc., Sr. Unsecd. Note, 1.750%, 9/15/2030 | 582,291 | |
240,000 | Royalty Pharma PLC, Sr. Unsecd. Note, Series WI, 1.200%, 9/2/2025 | 221,032 | |
300,000 | Teva Pharmaceutical Finance Netherlands III BV, Sr. Unsecd. Note, 3.150%, 10/1/2026 | 272,160 | |
TOTAL | 5,852,791 | ||
Consumer Non-Cyclical - Supermarkets—0.5% | |||
610,000 | Kroger Co., Bond, 6.900%, 4/15/2038 | 805,593 | |
Consumer Non-Cyclical - Tobacco—1.0% | |||
350,000 | Altria Group, Inc., Sr. Unsecd. Note, 4.400%, 2/14/2026 | 362,390 | |
250,000 | BAT Capital Corp., Sr. Unsecd. Note, 2.259%, 3/25/2028 | 224,762 | |
290,000 | BAT International Finance PLC, Sr. Unsecd. Note, 144A, 3.950%, 6/15/2025 | 288,613 | |
300,000 | Reynolds American, Inc., Sr. Unsecd. Note, 4.450%, 6/12/2025 | 306,633 | |
360,000 | Reynolds American, Inc., Sr. Unsecd. Note, 7.000%, 8/4/2041 | 414,608 | |
TOTAL | 1,597,006 | ||
Energy - Independent—2.8% | |||
250,000 | Canadian Natural Resources Ltd., Sr. Unsecd. Note, 2.050%, 7/15/2025 | 240,007 | |
420,000 | Canadian Natural Resources Ltd., Sr. Unsecd. Note, 2.950%, 1/15/2023 | 422,207 | |
250,000 | Cimarex Energy Co., Sr. Unsecd. Note, 4.375%, 6/1/2024 | 248,859 | |
215,000 | Cimarex Energy Co., Sr. Unsecd. Note, 4.375%, 3/15/2029 | 200,309 |
4
Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Energy - Independent—continued | |||
$ 500,000 | Coterra Energy, Inc., Sr. Unsecd. Note, 144A, 3.900%, 5/15/2027 | $ 504,532 | |
700,000 | 2 | Hess Corp., Sr. Unsecd. Note, 4.300%, 4/1/2027 | 719,428 |
300,000 | Marathon Oil Corp., Sr. Unsecd. Note, 4.400%, 7/15/2027 | 309,796 | |
100,000 | Occidental Petroleum Corp., Sr. Unsecd. Note, 2.900%, 8/15/2024 | 99,411 | |
1,000,000 | Occidental Petroleum Corp., Sr. Unsecd. Note, 3.450%, 7/15/2024 | 1,008,990 | |
325,000 | Pioneer Natural Resources, Inc., Sr. Unsecd. Note, 1.125%, 1/15/2026 | 301,806 | |
550,000 | Pioneer Natural Resources, Inc., Sr. Unsecd. Note, 2.150%, 1/15/2031 | 496,365 | |
TOTAL | 4,551,710 | ||
Energy - Integrated—2.2% | |||
500,000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 3.796%, 9/21/2025 | 515,576 | |
500,000 | BP Capital Markets PLC, Sr. Unsecd. Note, 3.994%, 9/26/2023 | 509,237 | |
300,000 | 2 | Cenovus Energy, Inc., Sr. Unsecd. Note, 2.650%, 1/15/2032 | 272,227 |
500,000 | Cenovus Energy, Inc., Sr. Unsecd. Note, 4.250%, 4/15/2027 | 516,781 | |
500,000 | Chevron Corp., Sr. Unsecd. Note, 1.141%, 5/11/2023 | 493,950 | |
530,000 | CNPC Hong Kong Overseas Capital Ltd., Company Guarantee, 144A, 5.950%, 4/28/2041 | 630,783 | |
240,000 | Husky Energy, Inc., Sr. Unsecd. Note, 4.400%, 4/15/2029 | 249,386 | |
175,000 | Petroleos Mexicanos, Sr. Unsecd. Note, 4.875%, 1/18/2024 | 177,236 | |
325,000 | Shell International Finance B.V., Sr. Unsecd. Note, 2.875%, 5/10/2026 | 326,002 | |
TOTAL | 3,691,178 | ||
Energy - Midstream—2.7% | |||
265,000 | Boardwalk Pipeline Partners LP, Sr. Unsecd. Note, 3.400%, 2/15/2031 | 251,151 | |
500,000 | Boardwalk Pipeline Partners LP, Sr. Unsecd. Note, 4.800%, 5/3/2029 | 517,710 | |
205,000 | Eastern Energy Gas Holdings, Sr. Unsecd. Note, Series A, 2.500%, 11/15/2024 | 203,045 | |
300,000 | Energy Transfer Operating, Sr. Unsecd. Note, 3.750%, 5/15/2030 | 295,556 | |
565,000 | Energy Transfer Partners LP, Sr. Unsecd. Note, 4.900%, 2/1/2024 | 580,421 | |
470,000 | Energy Transfer Partners LP, Sr. Unsecd. Note, Series 5Y, 4.200%, 9/15/2023 | 476,439 | |
290,000 | MPLX LP, Sr. Unsecd. Note, 1.750%, 3/1/2026 | 272,123 | |
350,000 | MPLX LP, Sr. Unsecd. Note, 3.375%, 3/15/2023 | 352,787 | |
395,000 | MPLX LP, Sr. Unsecd. Note, 4.125%, 3/1/2027 | 404,564 | |
345,000 | ONEOK, Inc., Sr. Unsecd. Note, 4.000%, 7/13/2027 | 348,594 | |
140,000 | Targa Resources, Inc., Sr. Unsecd. Note, 4.200%, 2/1/2033 | 141,473 | |
600,000 | TC Pipelines, LP, Sr. Unsecd. Note, 3.900%, 5/25/2027 | 613,076 | |
TOTAL | 4,456,939 | ||
Energy - Oil Field Services—0.2% | |||
300,000 | Schlumberger Holdings Corp., Sr. Unsecd. Note, 144A, 4.000%, 12/21/2025 | 305,141 | |
Energy - Refining—0.9% | |||
600,000 | Marathon Petroleum Corp., Sr. Unsecd. Note, 4.700%, 5/1/2025 | 624,183 | |
185,000 | Phillips 66, Sr. Unsecd. Note, 1.300%, 2/15/2026 | 173,138 | |
215,000 | Valero Energy Corp., 7.500%, 4/15/2032 | 272,032 | |
335,000 | 2 | Valero Energy Corp., Sr. Unsecd. Note, 6.625%, 6/15/2037 | 415,576 |
TOTAL | 1,484,929 | ||
Financial Institution - Banking—20.1% | |||
1,085,000 | Associated Banc-Corp., Sub. Note, 4.250%, 1/15/2025 | 1,107,222 | |
500,000 | Bank of America Corp., Sr. Unsecd. Note, 1.734%, 7/22/2027 | 464,794 | |
1,000,000 | Bank of America Corp., Sr. Unsecd. Note, 2.592%, 4/29/2031 | 924,280 | |
1,250,000 | Bank of America Corp., Sr. Unsecd. Note, 3.705%, 4/24/2028 | 1,259,596 | |
200,000 | Bank of America Corp., Sr. Unsecd. Note, Series GMTN, 2.816%, 7/21/2023 | 200,194 | |
750,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 2.456%, 10/22/2025 | 737,392 | |
500,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 3.248%, 10/21/2027 | 498,295 | |
500,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 4.271%, 7/23/2029 | 516,367 | |
250,000 | 2 | Bank of New York Mellon Corp., Sr. Unsecd. Note, 2.050%, 1/26/2027 | 241,141 |
5
Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - Banking—continued | |||
$ 550,000 | Bank of New York Mellon Corp., Sr. Unsecd. Note, Series MTN, 3.250%, 9/11/2024 | $ 556,423 | |
350,000 | Capital One Financial Corp., Sr. Unsecd. Note, 3.200%, 1/30/2023 | 353,105 | |
500,000 | Citigroup, Inc., 4.125%, 7/25/2028 | 508,565 | |
800,000 | Citigroup, Inc., Sr. Unsecd. Note, 2.572%, 6/3/2031 | 734,328 | |
250,000 | Citigroup, Inc., Sr. Unsecd. Note, 2.876%, 7/24/2023 | 250,382 | |
980,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.400%, 5/1/2026 | 988,544 | |
500,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.700%, 1/12/2026 | 506,597 | |
500,000 | 2 | Citigroup, Inc., Sr. Unsecd. Note, 4.075%, 4/23/2029 | 510,121 |
90,000 | Citizens Financial Group, Inc., Sr. Unsecd. Note, 2.500%, 2/6/2030 | 83,103 | |
660,000 | Citizens Financial Group, Inc., Sub. Note, 144A, 4.150%, 9/28/2022 | 667,484 | |
300,000 | Comerica, Inc., 3.800%, 7/22/2026 | 305,456 | |
500,000 | Compass Bank, Birmingham, Sub. Note, Series BKNT, 3.875%, 4/10/2025 | 510,029 | |
140,000 | Fifth Third Bancorp, Sr. Unsecd. Note, 2.375%, 1/28/2025 | 136,952 | |
500,000 | Fifth Third Bancorp, Sr. Unsecd. Note, 3.650%, 1/25/2024 | 506,363 | |
250,000 | Fifth Third Bank, Sr. Unsecd. Note, Series BKNT, 2.250%, 2/1/2027 | 240,851 | |
685,000 | FNB Corp. (PA), Sr. Unsecd. Note, 2.200%, 2/24/2023 | 681,235 | |
750,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 1.992%, 1/27/2032 | 650,762 | |
250,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 2.640%, 2/24/2028 | 239,300 | |
1,250,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.500%, 11/16/2026 | 1,256,314 | |
500,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 4.223%, 5/1/2029 | 512,437 | |
500,000 | Goldman Sachs Group, Inc., Sub. Note, 4.250%, 10/21/2025 | 512,720 | |
1,000,000 | HSBC USA, Inc., Sr. Unsecd. Note, 3.500%, 6/23/2024 | 1,010,247 | |
240,000 | Huntington Bancshares, Inc., Sr. Unsecd. Note, 2.550%, 2/4/2030 | 225,561 | |
1,000,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 1.045%, 11/19/2026 | 924,430 | |
500,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 2.545%, 11/8/2032 | 457,560 | |
500,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 2.580%, 4/22/2032 | 458,769 | |
500,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 3.782%, 2/1/2028 | 506,970 | |
500,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 4.452%, 12/5/2029 | 521,814 | |
500,000 | JPMorgan Chase & Co., Sub. Note, 3.375%, 5/1/2023 | 505,718 | |
500,000 | JPMorgan Chase & Co., Sub. Note, 3.875%, 9/10/2024 | 511,049 | |
750,000 | Morgan Stanley, Sr. Unsecd. Note, 0.790%, 5/30/2025 | 713,075 | |
1,000,000 | Morgan Stanley, Sr. Unsecd. Note, 0.985%, 12/10/2026 | 918,310 | |
1,000,000 | Morgan Stanley, Sr. Unsecd. Note, 3.625%, 1/20/2027 | 1,009,644 | |
500,000 | Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 2.239%, 7/21/2032 | 443,727 | |
165,000 | Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 2.699%, 1/22/2031 | 155,025 | |
1,000,000 | Morgan Stanley, Sub. Note, Series MTN, 4.100%, 5/22/2023 | 1,018,555 | |
330,000 | Regions Financial Corp., Sr. Unsecd. Note, 2.250%, 5/18/2025 | 321,508 | |
700,000 | State Street Corp., Sr. Unsecd. Note, 3.300%, 12/16/2024 | 707,425 | |
475,000 | Truist Bank, Sr. Unsecd. Note, Series BKNT, 2.150%, 12/6/2024 | 467,728 | |
500,000 | Truist Bank, Sr. Unsecd. Note, Series BKNT, 3.000%, 2/2/2023 | 503,535 | |
200,000 | Truist Bank, Sub. Note, Series BKNT, 3.300%, 5/15/2026 | 201,715 | |
300,000 | 2 | Truist Financial Corp., Sr. Unsecd. Note, Series MTN, 3.750%, 12/6/2023 | 305,759 |
250,000 | US Bancorp, Sr. Unsecd. Note, Series MTN, 2.215%, 1/27/2028 | 239,082 | |
750,000 | Wells Fargo & Co., Sr. Unsecd. Note, 2.188%, 4/30/2026 | 723,986 | |
2,120,000 | Wells Fargo & Co., Sr. Unsecd. Note, 3.000%, 10/23/2026 | 2,092,764 | |
250,000 | Wells Fargo & Co., Sr. Unsecd. Note, Series MTN, 2.406%, 10/30/2025 | 244,891 | |
1,000,000 | Wells Fargo & Co., Sr. Unsecd. Note, Series MTN, 2.572%, 2/11/2031 | 930,266 | |
500,000 | Wells Fargo & Co., Sr. Unsecd. Note, Series MTN, 3.584%, 5/22/2028 | 499,823 | |
TOTAL | 33,279,288 | ||
Financial Institution - Broker/Asset Mgr/Exchange—1.6% | |||
500,000 | Charles Schwab Corp., Sr. Unsecd. Note, 3.625%, 4/1/2025 | 508,044 |
6
Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - Broker/Asset Mgr/Exchange—continued | |||
$ 370,000 | Eaton Vance Corp., Sr. Unsecd. Note, 3.625%, 6/15/2023 | $ 374,422 | |
220,000 | Invesco Finance PLC, Sr. Unsecd. Note, 3.750%, 1/15/2026 | 224,515 | |
200,000 | Jefferies Group LLC, Sr. Unsecd. Note, 6.500%, 1/20/2043 | 240,371 | |
245,000 | Nuveen LLC, Sr. Unsecd. Note, 144A, 4.000%, 11/1/2028 | 255,272 | |
595,000 | Raymond James Financial, Inc., Sr. Unsecd. Note, 4.650%, 4/1/2030 | 630,500 | |
390,000 | Stifel Financial Corp., 4.250%, 7/18/2024 | 398,169 | |
TOTAL | 2,631,293 | ||
Financial Institution - Finance Companies—1.7% | |||
190,000 | AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 1.750%, 1/30/2026 | 174,557 | |
205,000 | AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 3.000%, 10/29/2028 | 189,446 | |
500,000 | AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 3.500%, 1/15/2025 | 491,696 | |
550,000 | AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 4.625%, 10/15/2027 | 561,754 | |
700,000 | Air Lease Corp., Sr. Unsecd. Note, 1.875%, 8/15/2026 | 645,845 | |
550,000 | Air Lease Corp., Sr. Unsecd. Note, 3.625%, 12/1/2027 | 536,165 | |
250,000 | Discover Financial Services, Sr. Unsecd. Note, 4.100%, 2/9/2027 | 255,312 | |
TOTAL | 2,854,775 | ||
Financial Institution - Insurance - Health—1.1% | |||
645,000 | Centene Corp., Sr. Unsecd. Note, 2.450%, 7/15/2028 | 590,191 | |
163,000 | CIGNA Corp., Sr. Unsecd. Note, 3.750%, 7/15/2023 | 165,426 | |
650,000 | CIGNA Corp., Sr. Unsecd. Note, 4.375%, 10/15/2028 | 684,749 | |
405,000 | UnitedHealth Group, Inc., Sr. Unsecd. Note, 3.750%, 7/15/2025 | 416,867 | |
TOTAL | 1,857,233 | ||
Financial Institution - Insurance - Life—1.0% | |||
350,000 | AIA Group Ltd., Sr. Unsecd. Note, 144A, 3.600%, 4/9/2029 | 352,926 | |
800,000 | American International Group, Inc., Sr. Unsecd. Note, 4.125%, 2/15/2024 | 818,534 | |
172,000 | Massachusetts Mutual Life Insurance Co., Sub. Note, 144A, 8.875%, 6/1/2039 | 259,707 | |
290,000 | Met Life Global Funding I, Sec. Fac. Bond, 144A, 0.550%, 6/7/2024 | 274,612 | |
TOTAL | 1,705,779 | ||
Financial Institution - Insurance - P&C—0.8% | |||
250,000 | Chubb INA Holdings, Inc., Sr. Unsecd. Note, 2.700%, 3/13/2023 | 251,584 | |
300,000 | 2 | Chubb INA Holdings, Inc., Sr. Unsecd. Note, 3.350%, 5/15/2024 | 304,482 |
250,000 | CNA Financial Corp., Sr. Unsecd. Note, 3.450%, 8/15/2027 | 250,624 | |
95,000 | CNA Financial Corp., Sr. Unsecd. Note, 3.900%, 5/1/2029 | 97,089 | |
300,000 | Nationwide Mutual Insurance Co., Sub. Note, 144A, 9.375%, 8/15/2039 | 458,359 | |
TOTAL | 1,362,138 | ||
Financial Institution - REIT - Apartment—1.1% | |||
395,000 | Avalonbay Communities, Inc., Sr. Unsecd. Note, Series MTN, 3.350%, 5/15/2027 | 395,157 | |
115,000 | Camden Property Trust, Sr. Unsecd. Note, 2.800%, 5/15/2030 | 110,669 | |
500,000 | Mid-America Apartment Communities LP, Sr. Unsecd. Note, 3.750%, 6/15/2024 | 507,143 | |
320,000 | Mid-America Apartment Communities LP, Sr. Unsub. Note, 1.700%, 2/15/2031 | 277,875 | |
500,000 | UDR, Inc., Sr. Unsecd. Note, Series MTN, 2.950%, 9/1/2026 | 490,017 | |
TOTAL | 1,780,861 | ||
Financial Institution - REIT - Healthcare—1.2% | |||
445,000 | Healthcare Trust of America, Sr. Unsecd. Note, 2.000%, 3/15/2031 | 385,711 | |
710,000 | Physicians Realty Trust, Sr. Unsecd. Note, 4.300%, 3/15/2027 | 727,814 | |
375,000 | Welltower, Inc., Sr. Unsecd. Note, 2.750%, 1/15/2031 | 349,916 | |
500,000 | Welltower, Inc., Sr. Unsecd. Note, 3.100%, 1/15/2030 | 482,063 | |
TOTAL | 1,945,504 | ||
Financial Institution - REIT - Office—0.6% | |||
250,000 | Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 4.900%, 12/15/2030 | 276,737 | |
480,000 | Boston Properties LP, Sr. Unsecd. Note, 3.200%, 1/15/2025 | 480,181 |
7
Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Financial Institution - REIT - Office—continued | |||
$ 80,000 | Boston Properties LP, Sr. Unsecd. Note, 3.250%, 1/30/2031 | $ 77,497 | |
120,000 | Piedmont Operating Partnership, LP, Sr. Unsecd. Note, 2.750%, 4/1/2032 | 107,137 | |
TOTAL | 941,552 | ||
Financial Institution - REIT - Other—0.6% | |||
320,000 | ProLogis LP, Sr. Unsecd. Note, 4.375%, 2/1/2029 | 341,206 | |
275,000 | WP Carey, Inc., Sr. Unsecd. Note, 2.400%, 2/1/2031 | 248,244 | |
450,000 | WP Carey, Inc., Sr. Unsecd. Note, 4.600%, 4/1/2024 | 461,838 | |
TOTAL | 1,051,288 | ||
Financial Institution - REIT - Retail—0.5% | |||
250,000 | Kimco Realty Corp., Sr. Unsecd. Note, 1.900%, 3/1/2028 | 227,140 | |
410,000 | Kimco Realty Corp., Sr. Unsecd. Note, 2.700%, 3/1/2024 | 407,022 | |
250,000 | Kimco Realty Corp., Sr. Unsecd. Note, 2.700%, 10/1/2030 | 234,586 | |
TOTAL | 868,748 | ||
Sovereign—0.4% | |||
510,000 | Inter-American Development Bank, Series MTN, 6.750%, 7/15/2027 | 603,967 | |
Technology—6.5% | |||
315,000 | Apple, Inc., Sr. Unsecd. Note, 1.125%, 5/11/2025 | 301,004 | |
650,000 | Apple, Inc., Sr. Unsecd. Note, 2.400%, 5/3/2023 | 653,862 | |
125,000 | Apple, Inc., Sr. Unsecd. Note, 4.450%, 5/6/2044 | 142,159 | |
340,000 | Automatic Data Processing, Inc., 3.375%, 9/15/2025 | 347,611 | |
280,000 | Broadcom Corp., Sr. Unsecd. Note, Series WI, 3.875%, 1/15/2027 | 282,310 | |
666,000 | Broadcom, Inc., Sr. Unsecd. Note, 4.110%, 9/15/2028 | 675,346 | |
135,000 | Broadcom, Inc., Sr. Unsecd. Note, 144A, 3.419%, 4/15/2033 | 126,246 | |
250,000 | Broadcom, Inc., Sr. Unsecd. Note, 144A, 4.000%, 4/15/2029 | 249,877 | |
250,000 | CDW LLC / CDW Finance, Sr. Unsecd. Note, 2.670%, 12/1/2026 | 236,100 | |
750,000 | Dell International LLC / EMC Corp., 5.300%, 10/1/2029 | 818,225 | |
150,000 | Dell International LLC / EMC Corp., 5.850%, 7/15/2025 | 160,233 | |
350,000 | Dell International LLC / EMC Corp., 6.200%, 7/15/2030 | 399,627 | |
480,000 | Equifax, Inc., Sr. Unsecd. Note, 2.600%, 12/1/2024 | 474,539 | |
80,000 | Equifax, Inc., Sr. Unsecd. Note, Series 5Y, 3.950%, 6/15/2023 | 80,846 | |
250,000 | Fiserv, Inc., Sr. Unsecd. Note, 2.650%, 6/1/2030 | 231,100 | |
230,000 | Fiserv, Inc., Sr. Unsecd. Note, 2.750%, 7/1/2024 | 229,471 | |
500,000 | Fiserv, Inc., Sr. Unsecd. Note, 4.200%, 10/1/2028 | 516,481 | |
175,000 | Intel Corp., Sr. Unsecd. Note, 3.400%, 3/25/2025 | 177,782 | |
500,000 | Intel Corp., Sr. Unsecd. Note, 3.700%, 7/29/2025 | 512,452 | |
460,000 | Keysight Technologies, Inc., 4.550%, 10/30/2024 | 473,106 | |
100,000 | Keysight Technologies, Inc., Sr. Unsecd. Note, 3.000%, 10/30/2029 | 95,452 | |
310,000 | Lam Research Corp., Sr. Unsecd. Note, 4.000%, 3/15/2029 | 325,289 | |
750,000 | Microsoft Corp., Sr. Unsecd. Note, 2.400%, 8/8/2026 | 744,503 | |
190,000 | Molex Electronics Technologies LLC, Unsecd. Note, 144A, 3.900%, 4/15/2025 | 193,343 | |
500,000 | Oracle Corp., Sr. Unsecd. Note, 1.650%, 3/25/2026 | 466,904 | |
750,000 | Oracle Corp., Sr. Unsecd. Note, 3.400%, 7/8/2024 | 755,865 | |
260,000 | Total System Services, Inc., Sr. Unsecd. Note, 4.450%, 6/1/2028 | 268,231 | |
600,000 | Verisk Analytics, Inc., Sr. Unsecd. Note, 4.125%, 3/15/2029 | 619,479 | |
265,000 | VMware, Inc., Sr. Unsecd. Note, 1.400%, 8/15/2026 | 243,675 | |
TOTAL | 10,801,118 | ||
Technology Services—0.8% | |||
255,000 | Fortinet, Inc., Sr. Unsecd. Note, 1.000%, 3/15/2026 | 232,371 | |
320,000 | Global Payments, Inc., Sr. Unsecd. Note, 1.200%, 3/1/2026 | 295,235 | |
600,000 | Global Payments, Inc., Sr. Unsecd. Note, 2.150%, 1/15/2027 | 564,115 | |
90,000 | Global Payments, Inc., Sr. Unsecd. Note, 2.900%, 5/15/2030 | 83,193 |
8
Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Technology Services—continued | |||
$ 145,000 | Verisign, Inc., Sr. Unsecd. Note, 2.700%, 6/15/2031 | $ 131,460 | |
TOTAL | 1,306,374 | ||
Transportation - Airlines—0.3% | |||
275,000 | Southwest Airlines Co., Sr. Unsecd. Note, 4.750%, 5/4/2023 | 280,893 | |
215,000 | Southwest Airlines Co., Sr. Unsecd. Note, 5.250%, 5/4/2025 | 225,963 | |
TOTAL | 506,856 | ||
Transportation - Railroads—1.2% | |||
250,000 | Canadian Pacific Railway Co., Sr. Unsecd. Note, 1.750%, 12/2/2026 | 235,887 | |
500,000 | Canadian Pacific Railway Co., Sr. Unsecd. Note, 2.450%, 12/2/2031 | 465,021 | |
850,000 | Kansas City Southern Industries, Inc., Sr. Unsecd. Note, 3.000%, 5/15/2023 | 852,701 | |
500,000 | 2 | Union Pacific Corp., Sr. Unsecd. Note, 2.150%, 2/5/2027 | 481,386 |
TOTAL | 2,034,995 | ||
Transportation - Services—2.1% | |||
735,000 | GXO Logistics, Inc., Sr. Unsecd. Note, 144A, 1.650%, 7/15/2026 | 664,607 | |
315,000 | GXO Logistics, Inc., Sr. Unsecd. Note, 144A, 2.650%, 7/15/2031 | 273,646 | |
215,000 | Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 1.200%, 11/15/2025 | 197,587 | |
250,000 | Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 1.700%, 6/15/2026 | 232,325 | |
300,000 | Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 3.450%, 7/1/2024 | 300,846 | |
250,000 | Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 4.450%, 1/29/2026 | 257,486 | |
350,000 | Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 1.750%, 9/1/2026 | 326,284 | |
600,000 | Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 3.875%, 12/1/2023 | 609,059 | |
590,000 | United Parcel Service, Inc., Sr. Unsecd. Note, 3.900%, 4/1/2025 | 608,073 | |
TOTAL | 3,469,913 | ||
Utility - Electric—3.7% | |||
310,000 | AEP Texas, Inc., Sr. Unsecd. Note, 3.850%, 10/1/2025 | 313,588 | |
185,000 | Ameren Corp., Sr. Unsecd. Note, 1.950%, 3/15/2027 | 173,550 | |
125,000 | American Electric Power Co., Inc., Sr. Unsecd. Note, 2.300%, 3/1/2030 | 114,016 | |
380,000 | American Electric Power Co., Inc., Sr. Unsecd. Note, Series F, 2.950%, 12/15/2022 | 381,582 | |
500,000 | Berkshire Hathaway Energy Co., 3.500%, 2/1/2025 | 507,463 | |
130,000 | Berkshire Hathaway Energy Co., Sr. Unsecd. Note, Series WI, 4.050%, 4/15/2025 | 134,107 | |
560,000 | Dominion Energy, Inc., Jr. Sub. Note, 3.071%, 8/15/2024 | 559,292 | |
400,000 | EDP Finance BV, Sr. Unsecd. Note, 144A, 1.710%, 1/24/2028 | 353,464 | |
500,000 | EDP Finance BV, Sr. Unsecd. Note, 144A, 3.625%, 7/15/2024 | 500,911 | |
190,000 | Emera US Finance LP, Sr. Unsecd. Note, 0.833%, 6/15/2024 | 179,993 | |
330,000 | Enel Finance International NV, Sr. Unsecd. Note, 144A, 1.375%, 7/12/2026 | 303,384 | |
385,000 | Exelon Corp., Sr. Unsecd. Note, 4.050%, 4/15/2030 | 397,950 | |
250,000 | Exelon Generation Co. LLC, Sr. Unsecd. Note, 3.250%, 6/1/2025 | 249,227 | |
240,000 | Fortis, Inc. / Canada, Sr. Unsecd. Note, 3.055%, 10/4/2026 | 237,570 | |
140,000 | National Rural Utilities Cooperative Finance Corp., Sr. Unsecd. Note, 2.950%, 2/7/2024 | 140,635 | |
300,000 | NextEra Energy Capital Holdings, Inc., Sr. Unsecd. Note, 3.550%, 5/1/2027 | 303,986 | |
500,000 | NiSource Finance Corp., Sr. Unsecd. Note, 3.490%, 5/15/2027 | 499,257 | |
245,000 | Puget Energy, Inc., Sec. Fac. Bond, 2.379%, 6/15/2028 | 224,478 | |
250,000 | Southern Co., Sr. Unsecd. Note, 3.250%, 7/1/2026 | 250,382 | |
155,000 | WEC Energy Group, Inc., Sr. Unsecd. Note, 2.200%, 12/15/2028 | 142,342 | |
108,000 | Wisconsin Energy Corp., Sr. Unsecd. Note, 3.550%, 6/15/2025 | 108,333 | |
TOTAL | 6,075,510 | ||
Utility - Natural Gas—0.8% | |||
280,000 | National Fuel Gas Co., Sr. Unsecd. Note, 2.950%, 3/1/2031 | 255,212 | |
600,000 | National Fuel Gas Co., Sr. Unsecd. Note, 3.750%, 3/1/2023 | 604,089 | |
395,000 | National Fuel Gas Co., Sr. Unsecd. Note, 5.500%, 1/15/2026 | 418,726 | |
TOTAL | 1,278,027 |
9
Principal Amount | Value | ||
CORPORATE BONDS—continued | |||
Utility - Natural Gas Distributor—0.3% | |||
$ 450,000 | Southern Co. Gas Capital, Sr. Unsecd. Note, 2.450%, 10/1/2023 | $ 448,466 | |
TOTAL CORPORATE BONDS (IDENTIFIED COST $164,189,662) | 160,959,815 | ||
MORTGAGE-BACKED SECURITIES—0.0% | |||
Federal Home Loan Mortgage Corporation—0.0% | |||
308 | Federal Home Loan Mortgage Corp., Pool C01051, 8.000%, 9/1/2030 | 343 | |
Government National Mortgage Association—0.0% | |||
341 | Government National Mortgage Association, Pool 1512, 7.500%, 12/20/2023 | 353 | |
1,198 | Government National Mortgage Association, Pool 2630, 6.500%, 8/20/2028 | 1,278 | |
1,738 | Government National Mortgage Association, Pool 2631, 7.000%, 8/20/2028 | 1,863 | |
2,334 | Government National Mortgage Association, Pool 2658, 6.500%, 10/20/2028 | 2,494 | |
3,732 | Government National Mortgage Association, Pool 2701, 6.500%, 1/20/2029 | 3,984 | |
2,682 | Government National Mortgage Association, Pool 2796, 7.000%, 8/20/2029 | 2,900 | |
486 | Government National Mortgage Association, Pool 3039, 6.500%, 2/20/2031 | 525 | |
1,997 | Government National Mortgage Association, Pool 3040, 7.000%, 2/20/2031 | 2,176 | |
7,059 | Government National Mortgage Association, Pool 3188, 6.500%, 1/20/2032 | 7,667 | |
4,756 | Government National Mortgage Association, Pool 3239, 6.500%, 5/20/2032 | 5,184 | |
10,896 | Government National Mortgage Association, Pool 3261, 6.500%, 7/20/2032 | 11,895 | |
809 | Government National Mortgage Association, Pool 516688, 8.000%, 8/15/2029 | 894 | |
TOTAL | 41,213 | ||
TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $38,359) | 41,556 | ||
REPURCHASE AGREEMENTS—3.0% | |||
3,463,000 | Interest in $1,592,000,000 joint repurchase agreement 0.30%, dated 3/31/2022 under which Bank of America, N.A. will repurchase securities provided as collateral for $1,592,013,267 on 4/1/2022. The securities provided as collateral at the end of the period held with BNY Mellon as tri-party agent, were U.S. Government Agency securities with various maturities to 4/20/2050 and the market value of those underlying securities was $1,623,853,532. | 3,463,000 | |
1,590,890 | Interest in $1,592,000,000 joint repurchase agreement 0.30%, dated 3/31/2022 under which Bank of America, N.A. will repurchase securities provided as collateral for $1,592,013,267 on 4/1/2022. The securities provided as collateral at the end of the period held with BNY Mellon as tri-party agent, were U.S. Government Agency securities with various maturities to 4/20/2050 and the market value of those underlying securities was $1,623,853,532. (purchased with proceeds from securities lending collateral) | 1,590,890 | |
TOTAL REPURCHASE AGREEMENTS (IDENTIFIED COST $5,053,890) | 5,053,890 | ||
TOTAL INVESTMENT IN SECURITIES—100.3% (IDENTIFIED COST $169,281,911) | 166,055,261 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.3)%3 | (565,731) | ||
TOTAL NET ASSETS—100% | $165,489,530 |
At March 31, 2022, the Fund had the following outstanding futures contracts:
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized Appreciation (Depreciation) |
Long Futures: | ||||
4United States Treasury Notes 10-Year Long Futures | 10 | $1,228,750 | June 2022 | $(32,835) |
4United States Treasury Notes 10-Year Ultra Long Futures | 5 | $677,344 | June 2022 | $(22,512) |
Short Futures: | ||||
4United States Treasury Long Bond Short Futures | 24 | $3,601,500 | June 2022 | $109,257 |
4United States Treasury Ultra Bond Short Futures | 1 | $177,125 | June 2022 | $7,092 |
NET UNREALIZED APPRECIATION ON FUTURES CONTRACTS | $61,002 |
The average notional value of long and short futures contracts held by the Fund throughout the period was $2,739,199 and $5,636,445, respectively. This is based on the contracts held as of each month-end throughout the three-month fiscal period.
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Net Unrealized Appreciation on Futures Contracts is included in “Other Assets and Liabilities—Net.”
1 | Floating/variable note with current rate and current maturity or next reset date shown. |
2 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. As of March 31, 2022, securities subject to this type of arrangement and related collateral were as follows: |
Market Value of Securities Loaned | Collateral Received |
$1,543,617 | $1,590,890 |
3 | Assets, other than investments in securities, less liabilities. |
4 | Non-income-producing security. |
Note: The categories of investments are shown as a percentage of total net assets at March 31, 2022.
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 the Fund’s Board of Trustees (the “Trustees”).
◾ Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations.
◾ Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.
◾ 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.
◾ For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, 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 Fund’s valuation policies and procedures, or if information furnished by a pricing service, in the opinion of the 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
The Trustees have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Trustees have appointed a Valuation Committee comprised of officers of the Fund, Federated Investment Management Company (the “Adviser”) and certain of the Adviser’s affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee 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 Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and 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 asked 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 Trustees.
The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser 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;
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◾ 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 Trustees have 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 Fund will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Trustees. The Trustees have ultimate responsibility for any fair valuations made in response to a significant event.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used, as of March 31, 2022, 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 | $— | $160,959,815 | $— | $160,959,815 |
Mortgage-Backed Securities | — | 41,556 | — | 41,556 |
Repurchase Agreements | — | 5,053,890 | — | 5,053,890 |
TOTAL SECURITIES | $— | $166,055,261 | $— | $166,055,261 |
Other Financial Instruments:1 | ||||
Assets | $116,349 | $— | $— | $116,349 |
Liabilities | (55,347) | — | — | (55,347) |
TOTAL OTHER FINANCIAL INSTRUMENTS | $61,002 | $— | $— | $61,002 |
1 | Other financial instruments are futures contracts. |
The following acronym(s) are used throughout this portfolio: | ||
BKNT | —Bank Notes | |
GMTN | —Global Medium Term Note | |
LIBOR | —London Interbank Offered Rate | |
MTN | —Medium Term Note | |
REIT | —Real Estate Investment Trust |
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