United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-7309
(Investment Company Act File Number)
Federated Hermes Total Return Government Bond Fund
______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
Peter J. Germain, Esquire
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 02/28/22
Date of Reporting Period: Six months ended 08/31/21
Item 1. | Reports to Stockholders |
Share Class | Ticker | Institutional | FTRGX | Service | FTGSX | R6 | FTGLX |
Federated Hermes Total Return Government Bond Fund
Dear Valued Shareholder,
Type of Investments | Percentage of Total Net Assets |
U.S. Treasury Securities | 59.4% |
U.S. Government Agency Securities | 19.6% |
U.S. Government Agency Mortgage-Backed Securities2 | 15.3% |
U.S. Government Agency Commercial Mortgage-Backed Securities | 2.9% |
Cash Equivalents3 | 3.2% |
Other Assets and Liabilities—Net4 | (0.4)% |
TOTAL | 100% |
1 | See the Fund’s Prospectus and Statement of Additional Information for a description of the principal types of securities in which the Fund invests. |
2 | For purposes of this table, Mortgage-Backed Securities may include mortgage-backed securities guaranteed by Government Sponsored Entities (GSEs) and adjustable rate mortgage-backed securities. |
3 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing securities lending collateral. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Principal Amount or Shares | Value | ||
U.S. TREASURIES— 59.4% | |||
U.S. Treasury Bonds— 14.7% | |||
$ 5,500,000 | 1.250%, 5/15/2050 | $4,653,262 | |
1,500,000 | 2.000%, 2/15/2050 | 1,521,378 | |
3,000,000 | 2.250%, 5/15/2041 | 3,205,737 | |
3,750,000 | 2.375%, 11/15/2049 | 4,116,283 | |
5,250,000 | 2.500%, 2/15/2045 | 5,837,775 | |
2,000,000 | 2.750%, 8/15/2047 | 2,341,815 | |
500,000 | 2.750%, 11/15/2047 | 585,916 | |
5,475,000 | 2.875%, 5/15/2049 | 6,602,792 | |
1,000,000 | 3.000%, 2/15/2049 | 1,232,247 | |
1,000,000 | 3.125%, 2/15/2043 | 1,223,533 | |
10,750,000 | 3.625%, 8/15/2043 | 14,165,183 | |
900,000 | 5.375%, 2/15/2031 | 1,232,359 | |
TOTAL | 46,718,280 | ||
U.S. Treasury Notes— 44.7% | |||
12,000,000 | 0.250%, 4/15/2023 | 12,017,250 | |
3,500,000 | 0.250%, 5/31/2025 | 3,456,617 | |
8,000,000 | 0.250%, 6/30/2025 | 7,894,896 | |
10,000,000 | 0.375%, 9/30/2027 | 9,654,981 | |
14,000,000 | 0.625%, 12/31/2027 | 13,676,922 | |
14,500,000 | 0.875%, 6/30/2026 | 14,577,676 | |
8,500,000 | 1.250%, 4/30/2028 | 8,612,336 | |
6,000,000 | 1.250%, 6/30/2028 | 6,070,921 | |
3,000,000 | 1.250%, 8/15/2031 | 2,982,188 | |
6,000,000 | 1.500%, 2/28/2023 | 6,121,186 | |
5,500,000 | 1.500%, 3/31/2023 | 5,617,092 | |
4,000,000 | 1.625%, 8/15/2029 | 4,140,637 | |
3,000,000 | 1.625%, 5/15/2031 | 3,090,951 | |
7,000,000 | 1.750%, 12/31/2024 | 7,292,504 | |
3,000,000 | 2.000%, 6/30/2024 | 3,136,955 | |
5,000,000 | 2.000%, 2/15/2025 | 5,253,672 | |
5,000,000 | 2.000%, 8/15/2025 | 5,271,595 | |
1,250,000 | 2.250%, 8/15/2027 | 1,345,124 | |
6,000,000 | 2.750%, 4/30/2023 | 6,257,530 | |
500,000 | 2.750%, 7/31/2023 | 524,369 | |
7,000,000 | 2.875%, 9/30/2023 | 7,383,369 |
Principal Amount or Shares | Value | ||
U.S. TREASURIES— continued | |||
U.S. Treasury Notes— continued | |||
$ 8,000,000 | 2.875%, 10/31/2023 | $8,454,380 | |
TOTAL | 142,833,151 | ||
TOTAL U.S. TREASURIES (IDENTIFIED COST $180,861,689) | 189,551,431 | ||
GOVERNMENT AGENCIES— 19.6% | |||
Federal Farm Credit System— 0.1% | |||
249,000 | 5.800%, 11/10/2021 | 251,731 | |
Federal Home Loan Bank System— 5.9% | |||
14,880,000 | 0.500%, 4/14/2025 | 14,854,469 | |
3,805,000 | 2.375%, 3/13/2026 | 4,079,130 | |
TOTAL | 18,933,599 | ||
Federal Home Loan Mortgage Corporation— 1.9% | |||
6,000,000 | 0.375%, 7/21/2025 | 5,944,172 | |
Federal National Mortgage Association— 10.9% | |||
16,000,000 | 0.625%, 4/22/2025 | 16,045,127 | |
6,000,000 | 1.625%, 1/7/2025 | 6,236,325 | |
6,500,000 | 1.875%, 9/24/2026 | 6,843,446 | |
4,000,000 | 6.625%, 11/15/2030 | 5,805,732 | |
TOTAL | 34,930,630 | ||
Tennessee Valley Authority Bonds— 0.8% | |||
1,750,000 | 4.875%, 1/15/2048 | 2,582,037 | |
TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $61,922,527) | 62,642,169 | ||
MORTGAGE-BACKED SECURITIES— 14.1% | |||
Federal Home Loan Mortgage Corporation— 5.7% | |||
3,815,901 | 1.500%, 8/1/2035 | 3,879,675 | |
3,419,477 | 2.000%, 4/1/2051 | 3,471,024 | |
1,171,500 | 2.500%, 11/1/2047 | 1,220,591 | |
1,373,393 | 2.500%, 10/1/2049 | 1,428,478 | |
1,324,852 | 2.500%, 11/1/2049 | 1,377,990 | |
952,793 | 3.000%, 12/1/2049 | 995,647 | |
1,079,977 | 3.500%, 1/1/2047 | 1,151,282 | |
1,498,067 | 4.000%, 3/1/2046 | 1,630,006 | |
312,872 | 4.000%, 11/1/2047 | 337,104 | |
829,935 | 4.000%, 4/1/2048 | 891,035 | |
1,686,568 | 4.000%, 7/1/2048 | 1,808,096 | |
TOTAL | 18,190,928 | ||
Federal National Mortgage Association— 6.8% | |||
3,423,434 | 2.000%, 4/1/2051 | 3,475,041 | |
2,019,191 | 2.500%, 11/1/2049 | 2,102,701 |
Principal Amount or Shares | Value | ||
MORTGAGE-BACKED SECURITIES— continued | |||
Federal National Mortgage Association— continued | |||
$ 5,965,529 | 2.500%, 7/1/2051 | $6,200,136 | |
3,745,894 | 3.000%, 7/1/2046 | 4,003,924 | |
1,132,504 | 3.500%, 10/1/2047 | 1,229,485 | |
2,158,010 | 3.500%, 4/1/2048 | 2,286,667 | |
397,761 | 4.000%, 2/1/2048 | 427,665 | |
871,191 | 4.000%, 2/1/2048 | 936,962 | |
748,362 | 4.000%, 2/1/2048 | 806,321 | |
36,839 | 5.000%, 1/1/2035 | 41,637 | |
1,103 | 5.500%, 2/1/2023 | 1,109 | |
27,053 | 5.500%, 6/1/2025 | 30,182 ��� | |
29,207 | 6.000%, 2/1/2026 | 32,770 | |
26,935 | 6.000%, 4/1/2026 | 30,221 | |
35,972 | 6.000%, 7/1/2034 | 42,074 | |
TOTAL | 21,646,895 | ||
Government National Mortgage Association— 0.0% | |||
9,802 | 5.000%, 3/15/2023 | 10,086 | |
30,681 | 5.500%, 2/15/2023 | 31,511 | |
19,580 | 6.000%, 1/20/2029 | 21,728 | |
17,716 | 6.000%, 3/15/2032 | 20,092 | |
15,902 | 6.500%, 10/15/2031 | 18,419 | |
232 | 7.500%, 10/15/2026 | 258 | |
9,362 | 7.500%, 10/15/2027 | 10,551 | |
TOTAL | 112,645 | ||
Uniform Mortgage-Backed Securities, TBA— 1.6% | |||
5,000,000 | 1 | 2.500%, 9/1/2051 | 5,193,751 |
TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $43,504,812) | 45,144,219 | ||
COMMERCIAL MORTGAGE-BACKED SECURITIES— 2.9% | |||
Agency Commercial Mortgage-Backed Securities— 2.9% | |||
5,000,000 | FHLMC REMIC, Series KC03, Class A2, 3.499%, 1/25/2026 | 5,311,649 | |
282,103 | FNMA REMIC, Series 2012-M13, Class A2, 2.377%, 5/25/2022 | 285,860 | |
3,479,838 | FNMA REMIC, Series 2020-M14, Class A2, 1.784%, 5/25/2030 | 3,580,777 | |
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $8,872,081) | 9,178,286 | ||
COLLATERALIZED MORTGAGE OBLIGATIONS— 1.2% | |||
Federal Home Loan Mortgage Corporation— 0.2% | |||
31,121 | 2 | REMIC, Series 2411, Class FJ, 0.445% (1-month USLIBOR +0.350%), 12/15/2029 | 31,220 |
100,405 | 2 | REMIC, Series 2458, Class FB, 1.095% (1-month USLIBOR +1.000%), 1/15/2032 | 102,645 |
Principal Amount or Shares | Value | ||
COLLATERALIZED MORTGAGE OBLIGATIONS— continued | |||
Federal Home Loan Mortgage Corporation— continued | |||
$ 17,043 | 2 | REMIC, Series 2534, Class FI, 0.995% (1-month USLIBOR +0.900%), 2/15/2032 | $17,380 |
42,064 | REMIC, Series 2601, Class DA, 4.000%, 4/15/2023 | 42,179 | |
304,238 | 2 | REMIC, Series 3322, Class FB, 0.485% (1-month USLIBOR +0.390%), 5/15/2037 | 306,694 |
TOTAL | 500,118 | ||
Federal National Mortgage Association— 0.3% | |||
110,178 | 2 | REMIC, Series 1999-51, Class F, 0.592% (1-month USLIBOR +0.500%), 9/17/2029 | 110,497 |
109,396 | 2 | REMIC, Series 2006-58, Class FP, 0.384% (1-month USLIBOR +0.300%), 7/25/2036 | 109,947 |
221,135 | 2 | REMIC, Series 2006-85, Class PF, 0.464% (1-month USLIBOR +0.380%), 9/25/2036 | 223,366 |
295,912 | 2 | REMIC, Series 2007-46, Class FA, 0.454% (1-month USLIBOR +0.370%), 5/25/2037 | 298,011 |
81,410 | 2 | REMIC, Series 370, Class F21, 0.384% (1-month USLIBOR +0.300%), 6/25/2036 | 81,808 |
TOTAL | 823,629 | ||
Government National Mortgage Association— 0.7% | |||
959,413 | REMIC, Series 2015-47, Class AE, 2.900%, 11/16/2055 | 994,886 | |
1,372,598 | REMIC, Series 2016-11, Class A, 2.500%, 8/16/2054 | 1,420,534 | |
TOTAL | 2,415,420 | ||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $3,639,352) | 3,739,167 | ||
ADJUSTABLE RATE MORTGAGE— 0.0% | |||
Federal Home Loan Mortgage Corporation ARM— 0.0% | |||
15,001 | 2 | 2.465%, 7/1/2035 (IDENTIFIED COST $14,856) | 15,611 |
INVESTMENT COMPANY— 3.2% | |||
10,247,581 | Federated Hermes Government Obligations Fund, Premier Shares, 0.02%3 (IDENTIFIED COST $10,247,581) | 10,247,581 | |
TOTAL INVESTMENT IN SECURITIES—100.4% (IDENTIFIED COST $309,062,898)4 | 320,518,464 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.4)%5 | (1,141,507) | ||
TOTAL NET ASSETS—100% | $319,376,957 |
Federated Hermes Government Obligations Fund, Premier Shares | |
Value as of 2/28/2021 | $26,435,003 |
Purchases at Cost | $106,060,996 |
Proceeds from Sales | $(122,248,418) |
Change in Unrealized Appreciation/Depreciation | N/A |
Net Realized Gain/(Loss) | N/A |
Value as of 8/31/2021 | $10,247,581 |
Shares Held as of 8/31/2021 | 10,247,581 |
Dividend Income | $2,921 |
1 | All or a portion of these To Be Announced Securities (TBAs) are subject to dollar-roll transactions. |
2 | Floating/adjustable note with current rate and current maturity or next reset date shown. Adjustable rate mortgage security coupons are based on the weighted average note rates of the underlying mortgages less the guarantee and servicing fees. These securities do not indicate an index and spread in their description above. |
3 | 7-day net yield. |
4 | The cost of investments for federal tax purposes amounts to $308,936,715. |
5 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
The following is a summary of the inputs used, as of August 31, 2021, 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: | ||||
U.S. Treasuries | $— | $189,551,431 | $— | $189,551,431 |
Government Agencies | — | 62,642,169 | — | 62,642,169 |
Mortgage-Backed Securities | — | 45,144,219 | — | 45,144,219 |
Commercial Mortgage-Backed Securities | — | 9,178,286 | — | 9,178,286 |
Collateralized Mortgage Obligations | — | 3,739,167 | — | 3,739,167 |
Adjustable Rate Mortgage | — | 15,611 | — | 15,611 |
Investment Company | 10,247,581 | — | — | 10,247,581 |
TOTAL SECURITIES | $10,247,581 | $310,270,883 | $— | $320,518,464 |
The following acronym(s) are used throughout this portfolio: | ||
ARM | —Adjustable Rate Mortgage | |
FHLMC | —Federal Home Loan Mortgage Corporation | |
FNMA | —Federal National Mortgage Association | |
LIBOR | —London Interbank Offered Rate | |
REMIC | —Real Estate Mortgage Investment Conduit |
Six Months Ended (unaudited) 8/31/2021 | Year Ended February 28 or 29, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | ||
Net Asset Value, Beginning of Period | $11.40 | $11.49 | $10.60 | $10.52 | $10.77 | $11.10 |
Income From Investment Operations: | ||||||
Net investment income (loss) | 0.08 | 0.16 | 0.28 | 0.25 | 0.21 | 0.22 |
Net realized and unrealized gain (loss) | 0.02 | (0.06) | 0.88 | 0.09 | (0.21) | (0.29) |
Total From Investment Operations | 0.10 | 0.10 | 1.16 | 0.34 | — | (0.07) |
Less Distributions: | ||||||
Distributions from net investment income | (0.09) | (0.19) | (0.27) | (0.26) | (0.21) | (0.21) |
Distributions from net realized gain | — | (0.00)1 | — | — | (0.04) | (0.05) |
Total Distributions | (0.09) | (0.19) | (0.27) | (0.26) | (0.25) | (0.26) |
Net Asset Value, End of Period | $11.41 | $11.40 | $11.49 | $10.60 | $10.52 | $10.77 |
Total Return2 | 0.84% | 0.81% | 11.09% | 3.23% | (0.01)% | (0.64)% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 0.32%4 | 0.32% | 0.32% | 0.32% | 0.32% | 0.32% |
Net investment income | 1.39%4 | 1.37% | 2.50% | 2.34% | 1.97% | 1.96% |
Expense waiver/reimbursement5 | 0.22%4 | 0.21% | 0.24% | 0.24% | 0.21% | 0.19% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $237,661 | $332,947 | $206,860 | $168,365 | $192,570 | $434,673 |
Portfolio turnover | 39% | 139% | 56% | 90% | 42% | 33% |
Portfolio turnover (excluding purchases and sales from dollar-roll transactions) | 15% | 42% | 49% | 90% | 42% | 33% |
1 | Represents less than $0.01. |
2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | Computed on an annualized basis. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Six Months Ended (unaudited) 8/31/2021 | Year Ended February 28 or 29, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | ||
Net Asset Value, Beginning of Period | $11.40 | $11.49 | $10.60 | $10.51 | $10.77 | $11.10 |
Income From Investment Operations: | ||||||
Net investment income (loss) | 0.06 | 0.15 | 0.24 | 0.21 | 0.18 | 0.18 |
Net realized and unrealized gain (loss) | 0.02 | (0.09) | 0.88 | 0.10 | (0.22) | (0.28) |
Total From Investment Operations | 0.08 | 0.06 | 1.12 | 0.31 | (0.04) | (0.10) |
Less Distributions: | ||||||
Distributions from net investment income | (0.07) | (0.15) | (0.23) | (0.22) | (0.18) | (0.18) |
Distributions from net realized gain | — | (0.00)1 | — | — | (0.04) | (0.05) |
Total Distributions | (0.07) | (0.15) | (0.23) | (0.22) | (0.22) | (0.23) |
Net Asset Value, End of Period | $11.41 | $11.40 | $11.49 | $10.60 | $10.51 | $10.77 |
Total Return2 | 0.67% | 0.46% | 10.71% | 2.98% | (0.45)% | (0.98)% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 0.66%4 | 0.66% | 0.66% | 0.66% | 0.66% | 0.66% |
Net investment income | 1.04%4 | 1.27% | 2.17% | 2.01% | 1.63% | 1.62% |
Expense waiver/reimbursement5 | 0.35%4 | 0.36% | 0.38% | 0.38% | 0.36% | 0.34% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $46,109 | $49,006 | $50,716 | $50,706 | $56,101 | $79,661 |
Portfolio turnover | 39% | 139% | 56% | 90% | 42% | 33% |
Portfolio turnover (excluding purchases and sales from dollar-roll transactions) | 15% | 42% | 49% | 90% | 42% | 33% |
1 | Represents less than $0.01. |
2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | Computed on an annualized basis. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Six Months Ended (unaudited) 8/31/2021 | Year Ended February 28 or 29, | Period Ended 2/28/20171 | ||||
2021 | 2020 | 2019 | 2018 | |||
Net Asset Value, Beginning of Period | $11.40 | $11.49 | $10.60 | $10.51 | $10.77 | $11.27 |
Income From Investment Operations: | ||||||
Net investment income (loss) | 0.08 | 0.19 | 0.28 | 0.25 | 0.21 | 0.14 |
Net realized and unrealized gain (loss) | 0.02 | (0.09) | 0.88 | 0.10 | (0.22) | (0.45) |
Total From Investment Operations | 0.10 | 0.10 | 1.16 | 0.35 | (0.01) | (0.31) |
Less Distributions: | ||||||
Distributions from net investment income | (0.09) | (0.19) | (0.27) | (0.26) | (0.21) | (0.15) |
Distributions from net realized gain | — | (0.00)2 | — | — | (0.04) | (0.04) |
Total Distributions | (0.09) | (0.19) | (0.27) | (0.26) | (0.25) | (0.19) |
Net Asset Value, End of Period | $11.41 | $11.40 | $11.49 | $10.60 | $10.51 | $10.77 |
Total Return3 | 0.85% | 0.82% | 11.10% | 3.34% | (0.10)% | (2.80)% |
Ratios to Average Net Assets: | ||||||
Net expenses4 | 0.31%5 | 0.31% | 0.31% | 0.31% | 0.31% | 0.31%5 |
Net investment income | 1.39%5 | 1.61% | 2.52% | 2.39% | 1.97% | 2.03%5 |
Expense waiver/reimbursement6 | 0.17%5 | 0.17% | 0.20% | 0.21% | 0.18% | 0.15%5 |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $35,608 | $36,028 | $30,658 | $26,828 | $22,429 | $25,377 |
Portfolio turnover | 39% | 139% | 56% | 90% | 42% | 33%7 |
Portfolio turnover (excluding purchases and sales from dollar-roll transactions) | 15% | 42% | 49% | 90% | 42% | 33%7 |
1 | Reflects operations for the period from June 29, 2016 (date of initial investment) to February 28, 2017. |
2 | Represents less than $0.01. |
3 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | Computed on an annualized basis. |
6 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
7 | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended February 28, 2017. |
August 31, 2021 (unaudited)
Assets: | |
Investment in securities, at value including $10,247,581 of investments in an affiliated holding* (identified cost $309,062,898) | $320,518,464 |
Income receivable | 976,588 |
Income receivable from an affiliated holding | 116 |
Receivable for investments sold | 3,335,683 |
Receivable for shares sold | 84,644 |
Total Assets | 324,915,495 |
Liabilities: | |
Payable for investments purchased | 5,190,478 |
Payable for shares redeemed | 214,158 |
Income distribution payable | 54,410 |
Payable for investment adviser fee (Note 5) | 964 |
Payable for administrative fee (Note 5) | 684 |
Payable for distribution services fee (Note 5) | 2,678 |
Payable for other service fees (Notes 2 and 5) | 11,243 |
Accrued expenses (Note 5) | 63,923 |
Total Liabilities | 5,538,538 |
Net assets for 27,984,081 shares outstanding | $319,376,957 |
Net Assets Consist of: | |
Paid-in capital | $309,784,783 |
Total distributable earnings (loss) | 9,592,174 |
Total Net Assets | $319,376,957 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Institutional Shares: | |
Net asset value per share ($237,660,508 ÷ 20,823,165 shares outstanding), no par value, unlimited shares authorized | $11.41 |
Service Shares: | |
Net asset value per share ($46,108,579 ÷ 4,040,602 shares outstanding), no par value, unlimited shares authorized | $11.41 |
Class R6 Shares: | |
Net asset value per share ($35,607,870 ÷ 3,120,314 shares outstanding), no par value, unlimited shares authorized | $11.41 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended August 31, 2021 (unaudited)
Investment Income: | |
Interest | $3,094,031 |
Net income on securities loaned (includes $789 received from an affiliated holding* related to cash collateral balances) (Note 2) | 3,660 |
Dividends received from an affiliated holding* | 2,132 |
TOTAL INCOME | 3,099,823 |
Expenses: | |
Investment adviser fee (Note 5) | 514,233 |
Administrative fee (Note 5) | 142,245 |
Custodian fees | 9,648 |
Transfer agent fees (Note 2) | 118,877 |
Directors’/Trustees’ fees (Note 5) | 4,675 |
Auditing fees | 15,476 |
Legal fees | 5,748 |
Portfolio accounting fees | 82,556 |
Distribution services fee (Note 5) | 59,854 |
Other service fees (Notes 2 and 5) | 56,611 |
Share registration costs | 42,180 |
Printing and postage | 16,905 |
Miscellaneous (Note 5) | 18,398 |
TOTAL EXPENSES | 1,087,406 |
Waivers and Reimbursements: | |
Waiver of investment adviser fee (Note 5) | (308,220) |
Waivers/reimbursements of other operating expenses (Notes 2 and 5) | (112,541) |
TOTAL WAIVERS AND REIMBURSEMENTS | (420,761) |
Net expenses | 666,645 |
Net investment income | 2,433,178 |
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts: | |
Net realized gain on investments | 3,356,526 |
Net realized loss on futures contracts | (231,683) |
Net change in unrealized appreciation of investments | (3,053,055) |
Net realized and unrealized gain (loss) on investments and futures contracts | 71,788 |
Change in net assets resulting from operations | $2,504,966 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 8/31/2021 | Year Ended 2/28/2021 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $2,433,178 | $6,163,090 |
Net realized gain (loss) | 3,124,843 | 1,747,232 |
Net change in unrealized appreciation/depreciation | (3,053,055) | (9,054,931) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 2,504,966 | (1,144,609) |
Distributions to Shareholders: | ||
Institutional Shares | (2,077,802) | (5,643,961) |
Service Shares | (275,994) | (676,183) |
Class R6 Shares | (274,313) | (538,255) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (2,628,109) | (6,858,399) |
Share Transactions: | ||
Proceeds from sale of shares | 45,022,801 | 433,711,109 |
Net asset value of shares issued to shareholders in payment of distributions declared | 2,142,579 | 5,488,256 |
Cost of shares redeemed | (145,646,767) | (301,448,736) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (98,481,387) | 137,750,629 |
Change in net assets | (98,604,530) | 129,747,621 |
Net Assets: | ||
Beginning of period | 417,981,487 | 288,233,866 |
End of period | $319,376,957 | $417,981,487 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Institutional Shares | $101,789 | $(68,724) |
Service Shares | 14,538 | — |
Class R6 Shares | 2,550 | — |
TOTAL | $118,877 | $(68,724) |
Other Service Fees Incurred | |
Service Shares | $56,611 |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |
Futures Contracts | |
Interest rate contracts | $(231,683) |
Six Months Ended 8/31/2021 | Year Ended 2/28/2021 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 3,103,448 | $35,203,104 | 33,022,783 | $388,810,553 |
Shares issued to shareholders in payment of distributions declared | 142,193 | 1,612,402 | 368,872 | 4,332,533 |
Shares redeemed | (11,632,251) | (131,858,795) | (22,177,816) | (259,987,944) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (8,386,610) | $(95,043,289) | 11,213,839 | $133,155,142 |
Six Months Ended 8/31/2021 | Year Ended 2/28/2021 | |||
Service Shares: | Shares | Amount | Shares | Amount |
Shares sold | 166,839 | $1,889,568 | 1,796,361 | $21,163,662 |
Shares issued to shareholders in payment of distributions declared | 22,781 | 258,340 | 54,102 | 635,705 |
Shares redeemed | (449,055) | (5,096,343) | (1,962,869) | (22,990,597) |
NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS | (259,435) | $(2,948,435) | (112,406) | $(1,191,230) |
Six Months Ended 8/31/2021 | Year Ended 2/28/2021 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 700,047 | $7,930,129 | 2,024,599 | $23,736,894 |
Shares issued to shareholders in payment of distributions declared | 23,963 | 271,837 | 44,302 | 520,018 |
Shares redeemed | (764,895) | (8,691,629) | (1,575,063) | (18,470,195) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | (40,885) | $(489,663) | 493,838 | $5,786,717 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (8,686,930) | $(98,481,387) | 11,595,271 | $137,750,629 |
Short-Term | Long-Term | Total |
$3,148,726 | $2,516,230 | $5,664,956 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Distribution Services Fees Incurred | Distribution Services Fees Waived | |
Service Shares | $59,854 | $(43,817) |
Beginning Account Value 3/1/2021 | Ending Account Value 8/31/2021 | Expenses Paid During Period1 | |
Actual: | |||
Institutional Shares | $1,000 | $1,008.40 | $1.62 |
Service Shares | $1,000 | $1,006.70 | $3.34 |
Class R6 Shares | $1,000 | $1,008.50 | $1.57 |
Hypothetical (assuming a 5% return before expenses): | |||
Institutional Shares | $1,000 | $1,023.59 | $1.63 |
Service Shares | $1,000 | $1,021.88 | $3.36 |
Class R6 Shares | $1,000 | $1,023.64 | $1.58 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Institutional Shares | 0.32% |
Service Shares | 0.66% |
Class R6 Shares | 0.31% |
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31429A204
CUSIP 31429A303
Item 2. | Code of Ethics |
Not Applicable
Item 3. | Audit Committee Financial Expert |
Not Applicable
Item 4. | Principal Accountant Fees and Services |
Not Applicable
Item 5. | Audit Committee of Listed Registrants |
Not Applicable
Item 6. | Schedule of Investments |
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
Item 8. | Portfolio Managers of Closed-End Management Investment Companies |
Not Applicable
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
Not Applicable
Item 10. | Submission of Matters to a Vote of Security Holders |
No Changes to Report
Item 11. | Controls and Procedures |
(a) The registrant’s President and Treasurer have concluded that the
registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the registrant’s most recent fiscal half-year (the registrant’s second fiscal half-year in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies |
Not Applicable
Item 13. | Exhibits |
(a)(1) Code of Ethics- Not Applicable to this Report.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Federated Hermes Total Return Government Bond Fund
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date October 25, 2021
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /S/ J. Christopher Donahue
J. Christopher Donahue
Principal Executive Officer
Date October 25, 2021
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date October 25, 2021