10/24/2024 | Press release | Distributed by Public on 10/24/2024 13:17
United States Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-4539
(Investment Company Act File Number)
Federated Hermes Adjustable Rate Securities Trust
(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: 2024-08-31
Date of Reporting Period: 2024-08-31
Item 1. | Reports to Stockholders |
Annual Shareholder Report - August 31, 2024
This annual shareholder report contains important information about the Federated Hermes Adjustable Rate Fund (the "Fund") for the period of September 1, 2023 to August 31, 2024. You can find additional information at FederatedHermes.com/us/FundInformation. You can also request this information by contacting us at 1-800-341-7400, Option 4, or your financial advisor.
(based on a hypothetical $10,000 investment)
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
Institutional Shares
|
$31
|
0.30%
|
The following discussion compares the performance of the Fund to the ICE BofA 1-Year US Treasury Note Index (the "Index") to show how the Fund's performance compares to the returns of similar investments for the reporting period. See the Average Annual Total Returns table below for the returns of the Fund and related indexes, including the Bloomberg US Aggregate Bond Index, which represents the overall U.S. fixed-income market. The Fund seeks to provide current income consistent with minimal volatility of principal by investing primarily in adjustable- and floating-rate securities.
Top Contributor to Performance
■ Sector allocation was the largest positive contributor to relative performance as adjustable securities, specifically floating rate
securities with monthly resets, performed well due to high income and tighter spreads.
Top Detractor from Performance
■ Yield curve exposure of the Fund did not benefit to the same degree as the Index from a steepening of the yield curve, acting as a
drag on relative performance.
Annual Shareholder Report
Federated Hermes Adjustable Rate Fund
Keep in mind that the Fund's past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Cumulative Performance: 8/31/2014 to 8/31/2024
Institutional Shares
|
Bloomberg US Aggregate Bond Index
|
ICE BofA 1-Year US Treasury Note Index
|
|
8/31/2014
|
$10,000
|
$10,000
|
$10,000
|
8/31/2015
|
$10,016
|
$10,156
|
$10,019
|
8/31/2016
|
$9,981
|
$10,761
|
$10,075
|
8/31/2017
|
$10,044
|
$10,814
|
$10,141
|
8/31/2018
|
$10,160
|
$10,701
|
$10,246
|
8/31/2019
|
$10,427
|
$11,789
|
$10,561
|
8/31/2020
|
$10,598
|
$12,553
|
$10,819
|
8/31/2021
|
$10,631
|
$12,542
|
$10,843
|
8/31/2022
|
$10,541
|
$11,098
|
$10,677
|
8/31/2023
|
$10,699
|
$10,965
|
$10,983
|
8/31/2024
|
$11,483
|
$11,765
|
$11,592
|
Fund/Index
|
1 Year
|
5 Years
|
10 Years
|
Institutional Shares
|
7.33%
|
1.95%
|
1.39%
|
Bloomberg US Aggregate Bond IndexFootnote Reference*
|
7.30%
|
(0.04%)
|
1.64%
|
ICE BofA 1-Year US Treasury Note Index
|
5.54%
|
1.88%
|
1.49%
|
Visit FederatedHermes.com/us/FundInformationand click on the link to your fund and share class for more recent performance information.
Footnote | Description |
Footnote*
|
The Fund has designated the Bloomberg US Aggregate Bond Index as its new broad-based securities market index in accordance with the SEC's revised definition for such an index. |
Net Assets
|
$171,852,600
|
Number of Investments
|
176
|
Portfolio Turnover
|
48%
|
Portfolio Turnover (excluding purchases and sales from dollar-roll transactions)
|
25%
|
Total Advisory Fees Paid
|
$5,447
|
Annual Shareholder Report
Federated Hermes Adjustable Rate Fund
Value
|
Value
|
Non-Agency Mortgage-Backed Securities
|
0.9%
|
Asset-Backed Securities
|
2.0%
|
U.S Government Agency Adjustable Rate Mortgage Securities
|
2.7%
|
Cash Equivalents
|
3.0%
|
U.S Treasury Securities
|
4.7%
|
U.S Government Agency Commerical Mortgage-Backed Securities
|
7.0%
|
U.S Government Agency Mortgage-Backed Securities
|
10.1%
|
Collateralized Mortgage Obligations
|
70.7%
|
Additional information is available on the Fund's website at FederatedHermes.com/us/FundInformation, including its:
• prospectus • financial information • holdings • proxy voting information
CUSIP 314082306
28996-B (10/24)
Federated Securities Corp., Distributor
FederatedHermes.com/us
© 2024 Federated Hermes, Inc.
Annual Shareholder Report - August 31, 2024
This annual shareholder report contains important information about the Federated Hermes Adjustable Rate Fund (the "Fund") for the period of September 1, 2023 to August 31, 2024. You can find additional information at FederatedHermes.com/us/FundInformation. You can also request this information by contacting us at 1-800-341-7400, Option 4, or your financial advisor.
(based on a hypothetical $10,000 investment)
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
Class A Shares
|
$57
|
0.55%
|
The following discussion compares the performance of the Fund to the ICE BofA 1-Year US Treasury Note Index (the "Index") to show how the Fund's performance compares to the returns of similar investments for the reporting period. See the Average Annual Total Returns table below for the returns of the Fund and related indexes, including the Bloomberg US Aggregate Bond Index, which represents the overall U.S. fixed-income market. The Fund seeks to provide current income consistent with minimal volatility of principal by investing primarily in adjustable- and floating-rate securities.
Top Contributor to Performance
■ Sector allocation was the largest positive contributor to relative performance as adjustable securities, specifically floating rate
securities with monthly resets, performed well due to high income and tighter spreads.
Top Detractor from Performance
■ Yield curve exposure of the Fund did not benefit to the same degree as the Index from a steepening of the yield curve, acting as a
drag on relative performance.
Annual Shareholder Report
Federated Hermes Adjustable Rate Fund
Keep in mind that the Fund's past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Cumulative Performance: 8/31/2014 to 8/31/2024
Class A Shares with sales load
|
Bloomberg US Aggregate Bond Index
|
ICE BofA 1-Year US Treasury Note Index
|
|
8/31/2014
|
$9,899
|
$10,000
|
$10,000
|
8/31/2015
|
$9,915
|
$10,156
|
$10,019
|
8/31/2016
|
$9,881
|
$10,761
|
$10,075
|
8/31/2017
|
$9,943
|
$10,814
|
$10,141
|
8/31/2018
|
$10,057
|
$10,701
|
$10,246
|
8/31/2019
|
$10,320
|
$11,789
|
$10,561
|
8/31/2020
|
$10,466
|
$12,553
|
$10,819
|
8/31/2021
|
$10,476
|
$12,542
|
$10,843
|
8/31/2022
|
$10,363
|
$11,098
|
$10,677
|
8/31/2023
|
$10,492
|
$10,965
|
$10,983
|
8/31/2024
|
$11,233
|
$11,765
|
$11,592
|
Fund/Index
|
1 Year
|
5 Years
|
10 Years
|
Class A Shares with sales load
|
6.03%
|
1.50%
|
1.17%
|
Class A Shares without sales load
|
7.06%
|
1.71%
|
1.27%
|
Bloomberg US Aggregate Bond IndexFootnote Reference*
|
7.30%
|
(0.04%)
|
1.64%
|
ICE BofA 1-Year US Treasury Note Index
|
5.54%
|
1.88%
|
1.49%
|
Visit FederatedHermes.com/us/FundInformationand click on the link to your fund and share class for more recent performance information.
Footnote | Description |
Footnote*
|
The Fund has designated the Bloomberg US Aggregate Bond Index as its new broad-based securities market index in accordance with the SEC's revised definition for such an index. |
Net Assets
|
$171,852,600
|
Number of Investments
|
176
|
Portfolio Turnover
|
48%
|
Portfolio Turnover (excluding purchases and sales from dollar-roll transactions)
|
25%
|
Total Advisory Fees Paid
|
$5,447
|
Annual Shareholder Report
Federated Hermes Adjustable Rate Fund
Value
|
Value
|
Non-Agency Mortgage-Backed Securities
|
0.9%
|
Asset-Backed Securities
|
2.0%
|
U.S Government Agency Adjustable Rate Mortgage Securities
|
2.7%
|
Cash Equivalents
|
3.0%
|
U.S Treasury Securities
|
4.7%
|
U.S Government Agency Commerical Mortgage-Backed Securities
|
7.0%
|
U.S Government Agency Mortgage-Backed Securities
|
10.1%
|
Collateralized Mortgage Obligations
|
70.7%
|
Additional information is available on the Fund's website at FederatedHermes.com/us/FundInformation, including its:
• prospectus • financial information • holdings • proxy voting information
CUSIP 314082108
28996-A (10/24)
Federated Securities Corp., Distributor
FederatedHermes.com/us
© 2024 Federated Hermes, Inc.
Item 2. | Code of Ethics |
(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics (the "Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers") that applies to the registrant's Principal Executive Officer and Principal Financial Officer; the registrant's Principal Financial Officer also serves as the Principal Accounting Officer.
(c) There was no amendment to the registrant's code of ethics described in Item 2(a) above during the period covered by the report.
(d) There was no waiver granted, either actual or implicit, from a provision to the registrant's code of ethics described in Item 2(a) above during the period covered by the report.
(e) Not Applicable
(f)(3) The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.
Item 3. | Audit Committee Financial Expert |
The registrant's Board has determined that each of the following members of the Board's Audit Committee is an "audit committee financial expert," and is "independent," for purposes of this Item 3: Thomas M. O'Neill and John S. Walsh.
Item 4. | Principal Accountant Fees and Services |
(a) Audit Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2024 - $38,522
Fiscal year ended 2023 - $36,801
(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2024 - $0
Fiscal year ended 2023 - $0
Amount requiring approval of the registrant's Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(c) Tax Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2024 - $0
Fiscal year ended 2023 - $0
Amount requiring approval of the registrant's Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(d) All Other Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2024 - $0
Fiscal year ended 2023 - $0
Amount requiring approval of the registrant's Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(e)(1) Audit Committee Policies regarding Pre-approval of Services.
The Audit Committee is required to pre-approve audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor's independence. The Audit Committee is required to pre-concur with independence conclusions made by the independent auditor regarding non-audit services to be provided by the independent auditor to the Funds, the Funds Board of Directors, or any entity that is controlled directly or indirectly by the Funds. Unless a type of service to be provided by the independent auditor has received general pre-approval, it will require specific pre-approval(and pre-concurrence for non-audit services) by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.
Certain services have the general pre-approval of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate to management its responsibilities to pre-approve services performed by the independent auditor.
The Audit Committee has delegated pre-approval/pre-concurrence authority to its chairman (the "Chairman") for services that do not exceed a specified dollar threshold. The Chairman or Chief Audit Executive will report any such pre-approval/pre-concurrence decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with such pre-approval/pre-concurrence authority when the Chairman is unavailable.
AUDIT SERVICES
The annual audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee will approve, if necessary, any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.
In addition to the annual audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other audit services, which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain audit services; with limited exception, all other audit services must be specifically pre-approved by the Audit Committee.
AUDIT-RELATED SERVICES
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the RIC's financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of audit-related services does not impair the independence of the auditor, and has pre-approved certain audit-related services; all other audit-related services must be specifically pre-approved by the Audit Committee.
TAX SERVICES
The Audit Committee believes that the independent auditor can provide tax services to the RIC such as tax compliance, tax planning and tax advice without impairing the auditor's independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved/pre-concurred certain tax services; with limited exception, all tax services involving large and complex transactions must be specifically pre-approved/pre-concurred by the Audit Committee.
ALL OTHER SERVICES
With respect to the provision of permissible services other than audit, review or attest services the pre-approval/pre-concurrence requirement is waived if:
(1) With respect to such services rendered to the Funds, the aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues paid by the audit client to its accountant during the fiscal year in which the services are provided; and,
(2) With respect to such services rendered to the Fund's investment adviser ( the "Adviser")and any entity controlling, controlled by to under common control with the Adviser such as affiliated non-U.S. and U.S. funds not under the Audit Committee's purview and which do not fall within a category of service which has been determined by the Audit Committee not to have a direct impact on the operations or financial reporting of the RIC, the aggregate amount of all services provided constitutes no more than five percent of the total amount of revenues paid to the RIC's auditor by the RIC, its Adviser and any entity controlling, controlled by, or under common control with the Adviser during the fiscal year in which the services are provided; and
(3) Such services were not recognized by the issuer or RIC at the time of the engagement to be non-audit services; and
(4) Such services are promptly brought to the attention of the Audit Committee and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee who are members of the Board of Directors to whom authority to grant such approvals has been delegated by the Audit Committee.
The Audit Committee may grant general pre-approval/pre-concurrence to those permissible non-audit services which qualify for pre-approval and which it believes are routine and recurring services, and would not impair the independence of the auditor.
The Securities and Exchange Commission's (the "SEC") rules and relevant guidance should be consulted to determine the precise definitions of these services and applicability of exceptions to certain of the prohibitions.
PRE-APPROVAL FEE LEVELS
Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee.
PROCEDURES
Requests or applications to provide services that require specific approval/concurrence by the Audit Committee will be submitted to the Audit Committee by the Fund's Principal Accounting Officer and/or the Chief Audit Executive of Federated Hermes, Inc., only after those individuals have determined that the request or application is consistent with the SEC's rules on auditor independence.
(e)(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrant's Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
4(b)
Fiscal year ended 2024 - 0%
Fiscal year ended 2023 - 0%
Percentage of services provided to the registrant's Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant's Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(c)
Fiscal year ended 2024 - 0%
Fiscal year ended 2023 - 0%
Percentage of services provided to the registrant's Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant's Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(d)
Fiscal year ended 2024 - 0%
Fiscal year ended 2023 - 0%
Percentage of services provided to the registrant's Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant's Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
(f) NA
(g) Non-Audit Fees billed to the registrant, the registrant's Adviser, and certain entities controlling, controlled by or under common control with the Adviser:
Fiscal year ended 2024 - $4,292
Fiscal year ended 2023 - $51,847
(h) The registrant's Audit Committee has considered that the provision of non-audit services that were rendered to the registrant's Adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence.
Item 5. | Audit Committee of Listed Registrants |
Not Applicable
Item 6. | Schedule of Investments |
(a) The registrant's Schedule of Investments is included as part of the Financial Statements filed under Item 7 of this form.
(b) Not Applicable
Item 7. | Financial Statements and Financial Highlights for Open-End Management Companies |
Share Class| Ticker
|
A| FEUGX
|
Institutional| FEUNX
|
|
|
Portfolio of Investments
|
1
|
Financial Highlights
|
7
|
Statement of Assets and Liabilities
|
9
|
Statement of Operations
|
10
|
Statement of Changes in Net Assets
|
11
|
Notes to Financial Statements
|
12
|
Report of Independent Registered Public Accounting Firm
|
17
|
Evaluation and Approval of Advisory Contract
|
18
|
Principal
Amount
or Shares
|
|
|
Value
|
|
1
|
COLLATERALIZED MORTGAGE OBLIGATIONS-71.6%
|
|
|
Federal Home Loan Mortgage Corporation-27.9%
|
||
$ 52,829
|
|
REMIC, Series 2380, Class FL, 6.068% (30-DAY AVERAGE SOFR +0.714%), 11/15/2031
|
$ 52,810
|
69,422
|
|
REMIC, Series 2434, Class FA, 6.468% (30-DAY AVERAGE SOFR +1.114%), 3/15/2032
|
69,968
|
26,799
|
|
REMIC, Series 2448, Class FA, 6.468% (30-DAY AVERAGE SOFR +1.114%), 1/15/2032
|
27,015
|
28,354
|
|
REMIC, Series 2452, Class FC, 6.468% (30-DAY AVERAGE SOFR +1.114%), 1/15/2032
|
28,583
|
83,525
|
|
REMIC, Series 2459, Class FP, 6.468% (30-DAY AVERAGE SOFR +1.114%), 6/15/2032
|
84,184
|
21,818
|
|
REMIC, Series 2470, Class EF, 6.468% (30-DAY AVERAGE SOFR +1.114%), 3/15/2032
|
21,990
|
101,779
|
|
REMIC, Series 2475, Class F, 6.468% (30-DAY AVERAGE SOFR +1.114%), 2/15/2032
|
102,559
|
69,567
|
|
REMIC, Series 2475, Class FD, 6.018% (30-DAY AVERAGE SOFR +0.664%), 6/15/2031
|
69,469
|
62,793
|
|
REMIC, Series 2480, Class NF, 6.468% (30-DAY AVERAGE SOFR +1.114%), 1/15/2032
|
63,188
|
21,484
|
|
REMIC, Series 2498, Class AF, 6.468% (30-DAY AVERAGE SOFR +1.114%), 3/15/2032
|
21,653
|
82,657
|
|
REMIC, Series 3085, Class UF, 5.918% (30-DAY AVERAGE SOFR +0.564%), 12/15/2035
|
81,908
|
192,281
|
|
REMIC, Series 3156, Class HF, 5.953% (30-DAY AVERAGE SOFR +0.599%), 8/15/2035
|
190,701
|
326,906
|
|
REMIC, Series 3208, Class FD, 5.868% (30-DAY AVERAGE SOFR +0.514%), 8/15/2036
|
323,313
|
318,070
|
|
REMIC, Series 3208, Class FG, 5.868% (30-DAY AVERAGE SOFR +0.514%), 8/15/2036
|
314,575
|
74,181
|
|
REMIC, Series 3213, Class GF, 5.898% (30-DAY AVERAGE SOFR +0.544%), 9/15/2036
|
73,394
|
449,057
|
|
REMIC, Series 3284, Class AF, 5.778% (30-DAY AVERAGE SOFR +0.424%), 3/15/2037
|
442,241
|
675,425
|
|
REMIC, Series 3314, Class FE, 5.738% (30-DAY AVERAGE SOFR +0.384%), 5/15/2037
|
663,615
|
547,456
|
|
REMIC, Series 3346, Class FT, 5.818% (30-DAY AVERAGE SOFR +0.464%), 10/15/2033
|
542,117
|
208,243
|
|
REMIC, Series 3380, Class FP, 5.818% (30-DAY AVERAGE SOFR +0.464%), 11/15/2036
|
205,476
|
244,272
|
|
REMIC, Series 3550, Class GF, 6.218% (30-DAY AVERAGE SOFR +0.864%), 7/15/2039
|
244,483
|
306,053
|
|
REMIC, Series 3556, Class FA, 6.378% (30-DAY AVERAGE SOFR +1.024%), 7/15/2037
|
307,991
|
133,203
|
|
REMIC, Series 3593, Class CF, 6.068% (30-DAY AVERAGE SOFR +0.714%), 2/15/2036
|
132,755
|
2,462,689
|
|
REMIC, Series 4077, Class HF, 5.868% (30-DAY AVERAGE SOFR +0.514%), 7/15/2042
|
2,420,281
|
961,188
|
|
REMIC, Series 4242, Class F, 5.868% (30-DAY AVERAGE SOFR +0.514%), 8/15/2043
|
948,704
|
3,089,372
|
|
REMIC, Series 4255, Class KF, 5.918% (30-DAY AVERAGE SOFR +0.564%), 10/15/2043
|
3,037,767
|
1,527,905
|
|
REMIC, Series 4508, Class CF, 5.868% (30-DAY AVERAGE SOFR +0.514%), 9/15/2045
|
1,511,495
|
3,225,387
|
|
REMIC, Series 4614, Class FG, 5.968% (30-DAY AVERAGE SOFR +0.614%), 9/15/2046
|
3,192,241
|
2,777,332
|
|
REMIC, Series 4619, Class NF, 5.868% (30-DAY AVERAGE SOFR +0.514%), 3/15/2044
|
2,739,163
|
2,550,063
|
|
REMIC, Series 4661, Class GF, 5.918% (30-DAY AVERAGE SOFR +0.564%), 2/15/2047
|
2,518,603
|
1,466,986
|
|
REMIC, Series 4752, Class PF, 5.768% (30-DAY AVERAGE SOFR +0.414%), 11/15/2047
|
1,398,041
|
3,702,510
|
|
REMIC, Series 4803, Class FA, 5.768% (30-DAY AVERAGE SOFR +0.414%), 6/15/2048
|
3,594,441
|
557,020
|
|
REMIC, Series 4829, Class FA, 5.718% (30-DAY AVERAGE SOFR +0.364%), 7/15/2037
|
546,021
|
1,127,637
|
|
REMIC, Series 4845, Class WF, 5.768% (30-DAY AVERAGE SOFR +0.414%), 12/15/2048
|
1,108,313
|
1,769,424
|
|
REMIC, Series 4846, Class PF, 5.818% (30-DAY AVERAGE SOFR +0.464%), 12/15/2048
|
1,734,081
|
986,533
|
|
REMIC, Series 4915, Class FG, 5.913% (30-DAY AVERAGE SOFR +0.564%), 9/25/2049
|
967,811
|
804,077
|
|
REMIC, Series 4921, Class FN, 5.913% (30-DAY AVERAGE SOFR +0.564%), 10/25/2049
|
782,611
|
487,504
|
|
REMIC, Series 4959, Class JF, 5.913% (30-DAY AVERAGE SOFR +0.564%), 3/25/2050
|
477,762
|
6,481,977
|
|
REMIC, Series 4983, Class FJ, 5.913% (30-DAY AVERAGE SOFR +0.564%), 6/25/2050
|
6,281,600
|
2,182,411
|
|
REMIC, Series 4998, Class KF, 5.698% (30-DAY AVERAGE SOFR +0.350%), 8/25/2050
|
2,110,061
|
2,293,425
|
|
REMIC, Series 5342, Class FB, 5.913% (30-DAY AVERAGE SOFR +0.564%), 11/25/2049
|
2,257,138
|
4,893,816
|
|
REMIC, Series 5393, Class HF, 6.274% (30-DAY AVERAGE SOFR +0.000%), 3/25/2054
|
4,893,798
|
1,405,234
|
|
REMIC, Series 5400, Class FA, 6.068% (30-DAY AVERAGE SOFR +0.000%), 4/25/2054
|
1,389,316
|
|
TOTAL
|
47,973,236
|
|
|
Federal National Mortgage Association-34.9%
|
||
55,585
|
|
REMIC, Series 2001-32, Class FA, 6.013% (30-DAY AVERAGE SOFR +0.664%), 7/25/2031
|
55,548
|
31,515
|
|
REMIC, Series 2001-57, Class FA, 5.913% (30-DAY AVERAGE SOFR +0.564%), 6/25/2031
|
31,311
|
25,299
|
|
REMIC, Series 2001-62, Class FC, 6.113% (30-DAY AVERAGE SOFR +0.764%), 11/25/2031
|
25,336
|
Principal
Amount
or Shares
|
|
|
Value
|
|
1
|
COLLATERALIZED MORTGAGE OBLIGATIONS-continued
|
|
|
Federal National Mortgage Association-continued
|
||
$ 32,932
|
|
REMIC, Series 2001-71, Class FS, 6.063% (30-DAY AVERAGE SOFR +0.714%), 11/25/2031
|
$ 32,941
|
109,829
|
|
REMIC, Series 2002-7, Class FG, 6.363% (30-DAY AVERAGE SOFR +1.014%), 1/25/2032
|
110,302
|
53,684
|
|
REMIC, Series 2002-8, Class FA, 6.217% (30-DAY AVERAGE SOFR +0.864%), 3/18/2032
|
53,865
|
60,841
|
|
REMIC, Series 2002-52, Class FG, 5.963% (30-DAY AVERAGE SOFR +0.614%), 9/25/2032
|
60,628
|
176,670
|
|
REMIC, Series 2002-58, Class FG, 6.463% (30-DAY AVERAGE SOFR +1.114%), 8/25/2032
|
178,201
|
28,709
|
|
REMIC, Series 2002-60, Class FH, 6.463% (30-DAY AVERAGE SOFR +1.114%), 8/25/2032
|
28,958
|
57,139
|
|
REMIC, Series 2002-77, Class FA, 6.467% (30-DAY AVERAGE SOFR +1.114%), 12/18/2032
|
57,610
|
22,785
|
|
REMIC, Series 2002-77, Class FG, 6.017% (30-DAY AVERAGE SOFR +0.664%), 12/18/2032
|
22,718
|
58,572
|
|
REMIC, Series 2005-67, Class FM, 5.813% (30-DAY AVERAGE SOFR +0.464%), 8/25/2035
|
58,330
|
1,267,855
|
|
REMIC, Series 2005-95, Class FH, 5.763% (30-DAY AVERAGE SOFR +0.414%), 11/25/2035
|
1,250,995
|
85,210
|
|
REMIC, Series 2006-11, Class FB, 5.763% (30-DAY AVERAGE SOFR +0.414%), 3/25/2036
|
84,678
|
1,901,507
|
|
REMIC, Series 2006-42, Class CF, 5.913% (30-DAY AVERAGE SOFR +0.564%), 6/25/2036
|
1,886,243
|
997,070
|
|
REMIC, Series 2006-50, Class FE, 5.863% (30-DAY AVERAGE SOFR +0.514%), 6/25/2036
|
990,512
|
352,630
|
|
REMIC, Series 2006-65, Class DF, 5.813% (30-DAY AVERAGE SOFR +0.464%), 7/25/2036
|
348,941
|
138,343
|
|
REMIC, Series 2006-76, Class QF, 5.863% (30-DAY AVERAGE SOFR +0.514%), 8/25/2036
|
137,061
|
942,185
|
|
REMIC, Series 2006-81, Class FA, 5.813% (30-DAY AVERAGE SOFR +0.464%), 9/25/2036
|
930,853
|
455,044
|
|
REMIC, Series 2006-85, Class PF, 5.843% (30-DAY AVERAGE SOFR +0.494%), 9/25/2036
|
450,831
|
383,834
|
|
REMIC, Series 2006-103, Class FB, 5.863% (30-DAY AVERAGE SOFR +0.514%), 10/25/2036
|
379,651
|
791,535
|
|
REMIC, Series 2006-123, Class CF, 5.723% (30-DAY AVERAGE SOFR +0.374%), 1/25/2037
|
779,063
|
1,181,532
|
|
REMIC, Series 2006-W1, Class 2AF1, 5.683% (30-DAY AVERAGE SOFR +0.334%), 2/25/2046
|
1,170,295
|
68,786
|
|
REMIC, Series 2007-20, Class F, 5.723% (30-DAY AVERAGE SOFR +0.374%), 3/25/2037
|
67,957
|
749,259
|
|
REMIC, Series 2007-71, Class WF, 5.913% (30-DAY AVERAGE SOFR +0.564%), 7/25/2037
|
742,828
|
170,841
|
|
REMIC, Series 2007-88, Class FW, 6.013% (30-DAY AVERAGE SOFR +0.664%), 9/25/2037
|
167,634
|
43,916
|
|
REMIC, Series 2007-102, Class FA, 6.033% (30-DAY AVERAGE SOFR +0.684%), 11/25/2037
|
43,697
|
196,635
|
|
REMIC, Series 2008-69, Class FB, 6.463% (30-DAY AVERAGE SOFR +1.114%), 6/25/2037
|
198,486
|
23,300
|
|
REMIC, Series 2008-75, Class DF, 6.713% (30-DAY AVERAGE SOFR +1.364%), 9/25/2038
|
23,717
|
344,781
|
|
REMIC, Series 2009-78, Class UF, 6.233% (30-DAY AVERAGE SOFR +0.884%), 10/25/2039
|
345,465
|
500,789
|
|
REMIC, Series 2009-87, Class FX, 6.213% (30-DAY AVERAGE SOFR +0.864%), 11/25/2039
|
501,601
|
615,700
|
|
REMIC, Series 2009-87, Class HF, 6.313% (30-DAY AVERAGE SOFR +0.964%), 11/25/2039
|
617,957
|
833,056
|
|
REMIC, Series 2009-106, Class FN, 6.213% (30-DAY AVERAGE SOFR +0.864%), 1/25/2040
|
834,068
|
276,721
|
|
REMIC, Series 2010-39, Class EF, 5.983% (30-DAY AVERAGE SOFR +0.634%), 6/25/2037
|
275,117
|
1,748,785
|
|
REMIC, Series 2010-68, Class BF, 5.963% (30-DAY AVERAGE SOFR +0.614%), 7/25/2040
|
1,731,584
|
893,901
|
|
REMIC, Series 2011-4, Class PF, 6.013% (30-DAY AVERAGE SOFR +0.664%), 2/25/2041
|
889,174
|
320,814
|
|
REMIC, Series 2012-65, Class FB, 5.983% (30-DAY AVERAGE SOFR +0.634%), 6/25/2042
|
318,396
|
872,583
|
|
REMIC, Series 2012-122, Class LF, 5.863% (30-DAY AVERAGE SOFR +0.514%), 11/25/2042
|
859,162
|
1,221,749
|
|
REMIC, Series 2012-130, Class DF, 5.863% (30-DAY AVERAGE SOFR +0.514%), 12/25/2042
|
1,195,755
|
1,282,942
|
|
REMIC, Series 2014-20, Class FB, 5.863% (30-DAY AVERAGE SOFR +0.514%), 4/25/2044
|
1,269,690
|
812,584
|
|
REMIC, Series 2016-32, Class FA, 5.863% (30-DAY AVERAGE SOFR +0.514%), 10/25/2034
|
805,715
|
734,195
|
|
REMIC, Series 2016-83, Class FA, 5.963% (30-DAY AVERAGE SOFR +0.614%), 11/25/2046
|
721,966
|
1,025,444
|
|
REMIC, Series 2017-30, Class FA, 5.813% (30-DAY AVERAGE SOFR +0.464%), 5/25/2047
|
1,009,952
|
566,446
|
|
REMIC, Series 2017-96, Class FA, 5.842% (30-DAY AVERAGE SOFR +0.514%), 12/25/2057
|
556,387
|
1,517,825
|
|
REMIC, Series 2018-15, Class JF, 5.763% (30-DAY AVERAGE SOFR +0.414%), 3/25/2048
|
1,469,702
|
3,863,083
|
|
REMIC, Series 2018-57, Class FL, 5.763% (30-DAY AVERAGE SOFR +0.414%), 8/25/2048
|
3,755,948
|
2,258,787
|
|
REMIC, Series 2018-70, Class HF, 5.813% (30-DAY AVERAGE SOFR +0.464%), 10/25/2058
|
2,216,242
|
2,291,003
|
|
REMIC, Series 2019-5, Class FA, 5.863% (30-DAY AVERAGE SOFR +0.514%), 3/25/2049
|
2,252,551
|
2,323,869
|
|
REMIC, Series 2019-21, Class FB, 5.913% (30-DAY AVERAGE SOFR +0.564%), 5/25/2049
|
2,280,500
|
3,259,337
|
|
REMIC, Series 2019-25, Class PF, 5.913% (30-DAY AVERAGE SOFR +0.564%), 6/25/2049
|
3,202,374
|
1,590,593
|
|
REMIC, Series 2019-33, Class FB, 5.913% (30-DAY AVERAGE SOFR +0.564%), 7/25/2049
|
1,570,200
|
902,796
|
|
REMIC, Series 2019-35, Class EF, 5.913% (30-DAY AVERAGE SOFR +0.564%), 7/25/2049
|
884,440
|
384,447
|
|
REMIC, Series 2019-41, Class FC, 5.913% (30-DAY AVERAGE SOFR +0.564%), 8/25/2049
|
376,196
|
Principal
Amount
or Shares
|
|
|
Value
|
|
1
|
COLLATERALIZED MORTGAGE OBLIGATIONS-continued
|
|
|
Federal National Mortgage Association-continued
|
||
$1,099,625
|
|
REMIC, Series 2019-42, Class LF, 5.813% (30-DAY AVERAGE SOFR +0.464%), 8/25/2049
|
$ 1,094,027
|
1,579,640
|
|
REMIC, Series 2019-59, Class F, 5.891% (30-DAY AVERAGE SOFR +0.544%), 10/25/2049
|
1,549,988
|
4,512,203
|
|
REMIC, Series 2020-27, Class FD, 5.913% (30-DAY AVERAGE SOFR +0.564%), 5/25/2050
|
4,409,450
|
1,443,682
|
|
REMIC, Series 2020-29, Class FC, 6.250% (30-DAY AVERAGE SOFR +0.914%), 5/25/2050
|
1,448,916
|
1,690,373
|
|
REMIC, Series 2020-34, Class FA, 5.913% (30-DAY AVERAGE SOFR +0.564%), 6/25/2050
|
1,652,789
|
2,278,094
|
|
REMIC, Series 2023-42, Class FA, 5.763% (30-DAY AVERAGE SOFR +0.414%), 10/25/2048
|
2,231,632
|
1,438,836
|
|
REMIC, Series 2024-13, Class FA, 6.348% (30-DAY AVERAGE SOFR +1.000%), 10/25/2053
|
1,440,242
|
966,736
|
|
REMIC, Series 2024-25, Class FA, 6.448% (30-DAY AVERAGE SOFR +1.100%), 5/25/2054
|
963,743
|
4,836,730
|
|
REMIC, Series 2024-40, Class FC, 6.248% (30-DAY AVERAGE SOFR +0.900%), 5/25/2054
|
4,813,443
|
|
TOTAL
|
59,913,562
|
|
|
Government National Mortgage Association-7.9%
|
||
2,245,776
|
|
REMIC, Series 2010-115, Class FP, 6.000% (CME Term SOFR 1 Month +0.714%), 9/20/2040
|
2,227,291
|
271,671
|
|
REMIC, Series 2012-42, Class HF, 5.820% (CME Term SOFR 1 Month +0.484%), 3/20/2042
|
266,496
|
1,232,133
|
|
REMIC, Series 2014-2, Class BF, 5.800% (CME Term SOFR 1 Month +0.464%), 1/20/2044
|
1,214,021
|
1,832,213
|
|
REMIC, Series 2015-119, Class FN, 5.700% (CME Term SOFR 1 Month +0.364%), 8/20/2045
|
1,777,457
|
2,488,931
|
|
REMIC, Series 2022-175, Class FA, 6.253% (30-DAY AVERAGE SOFR +0.000%), 10/20/2052
|
2,466,889
|
4,359,373
|
|
REMIC, Series 2023-35, Class FH, 5.903% (30-DAY AVERAGE SOFR +0.550%), 2/20/2053
|
4,293,806
|
1,333,617
|
|
REMIC, Series 2023-117, Class F, 6.303% (30-DAY AVERAGE SOFR +0.950%), 5/20/2053
|
1,326,598
|
|
TOTAL
|
13,572,558
|
|
|
Non-Agency Mortgage-Backed Securities-0.9%
|
||
1,632,238
|
|
JP Morgan Mortgage Trust 2021-1, Class A11, 5.997% (30-DAY AVERAGE SOFR +0.650%), 6/25/2051
|
1,528,637
|
|
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(IDENTIFIED COST $123,951,380)
|
122,987,993
|
|
|
MORTGAGE-BACKED SECURITIES-10.1%
|
||
|
Federal Home Loan Mortgage Corporation-4.3%
|
||
1,447,357
|
|
5.000%, 4/1/2053
|
1,436,800
|
1,998,069
|
|
5.500%, 6/1/2054
|
2,011,275
|
3,842,931
|
|
5.500%, 8/1/2053
|
3,869,531
|
|
TOTAL
|
7,317,606
|
|
|
Federal National Mortgage Association-4.4%
|
||
470,841
|
|
4.000%, 4/1/2053
|
447,215
|
971,848
|
|
4.000%, 11/1/2052
|
921,563
|
1,453,565
|
|
5.500%, 1/1/2054
|
1,463,626
|
1,988,109
|
|
5.500%, 5/1/2053
|
2,009,201
|
1,495,243
|
|
5.500%, 4/1/2054
|
1,505,125
|
1,197,319
|
|
6.000%, 10/1/2053
|
1,219,932
|
|
TOTAL
|
7,566,662
|
|
|
Government National Mortgage Association-0.3%
|
||
474,864
|
|
5.500%, 8/20/2053
|
477,946
|
2
|
Uniform Mortgage-Backed Securities, TBA-1.1%
|
||
2,000,000
|
|
5.000%, 9/1/2054
|
1,985,390
|
|
TOTAL MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $17,149,694)
|
17,347,604
|
|
1
|
COMMERCIAL MORTGAGE-BACKED SECURITIES-7.0%
|
||
|
Agency Commercial Mortgage-Backed Securities-7.0%
|
||
593,661
|
|
FHLMC REMIC, Series KF90, Class AS, 5.731% (30-DAY AVERAGE SOFR +0.380%), 9/25/2030
|
590,410
|
1,503,438
|
|
FHLMC REMIC, Series KF94, Class AL, 5.765% (30-DAY AVERAGE SOFR +0.414%), 11/25/2030
|
1,500,361
|
1,575,000
|
|
FHLMC REMIC, Series KF148, Class AS, 6.191% (30-DAY AVERAGE SOFR +0.840%), 11/25/2032
|
1,588,013
|
1,850,611
|
|
FHLMC REMIC, Series KF149, Class AS, 5.991% (30-DAY AVERAGE SOFR +0.640%), 12/25/2032
|
1,848,957
|
1,979,897
|
|
FHLMC REMIC, Series KF154, Class AS, 6.031% (30-DAY AVERAGE SOFR +0.680%), 3/25/2033
|
1,973,310
|
2,000,000
|
|
FHLMC REMIC, Series KF155, Class AS, 6.021% (30-DAY AVERAGE SOFR +0.670%), 2/25/2030
|
1,997,781
|
Principal
Amount
or Shares
|
|
|
Value
|
1
|
COMMERCIAL MORTGAGE-BACKED SECURITIES-continued
|
||
|
Agency Commercial Mortgage-Backed Securities-continued
|
||
$2,441,930
|
|
FHLMC REMIC, Series KF157, Class AS, 6.011% (30-DAY AVERAGE SOFR +0.660%), 4/25/2033
|
$ 2,459,438
|
170,390
|
|
FNMA REMIC, Series 2020-M5, Class FA, 5.925% (30-DAY AVERAGE SOFR +0.574%), 1/25/2027
|
170,048
|
|
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $12,114,687)
|
12,128,318
|
|
|
U.S. TREASURIES-4.7%
|
||
|
U.S. Treasury Notes-4.7%
|
||
1,500,000
|
|
0.750%, 3/31/2026
|
1,424,453
|
1,750,000
|
|
1.125%, 10/31/2026
|
1,650,000
|
2,500,000
|
|
4.375%, 7/31/2026
|
2,518,505
|
2,500,000
|
|
4.625%, 6/30/2026
|
2,527,193
|
|
TOTAL U.S. TREASURIES
(IDENTIFIED COST $8,052,972)
|
8,120,151
|
|
1
|
ADJUSTABLE RATE MORTGAGES-2.7%
|
||
|
Federal Home Loan Mortgage Corporation ARM-0.4%
|
||
236,159
|
|
6.640%, 7/1/2038
|
240,914
|
463,747
|
|
7.254%, 5/1/2035
|
475,824
|
|
TOTAL
|
716,738
|
|
|
Federal National Mortgage Association ARM-2.3%
|
||
356,957
|
|
5.465%, 10/1/2034
|
366,151
|
105,237
|
|
5.565%, 10/1/2037
|
107,616
|
106,111
|
|
5.887%, 12/1/2034
|
108,779
|
209,282
|
|
6.085%, 11/1/2039
|
215,299
|
266,238
|
|
6.106%, 1/1/2040
|
273,893
|
187,152
|
|
6.114%, 9/1/2033
|
189,321
|
208,703
|
|
6.123%, 12/1/2034
|
211,354
|
81,739
|
|
6.143%, 10/1/2035
|
82,978
|
140,654
|
|
6.195%, 2/1/2042
|
144,698
|
58,938
|
|
6.226%, 5/1/2035
|
59,512
|
18,031
|
|
6.254%, 2/1/2036
|
18,436
|
236,776
|
|
6.307%, 1/1/2035
|
240,243
|
55,215
|
|
6.340%, 12/1/2033
|
55,737
|
344,852
|
|
6.392%, 5/1/2039
|
347,135
|
94,084
|
|
6.398%, 10/1/2035
|
95,274
|
160,511
|
|
6.459%, 1/1/2035
|
164,341
|
109,001
|
|
6.636%, 7/1/2035
|
110,673
|
739
|
|
6.715%, 7/1/2027
|
738
|
187,232
|
|
6.767%, 6/1/2034
|
190,239
|
251,143
|
|
6.823%, 7/1/2035
|
254,867
|
20,822
|
|
6.870%, 4/1/2034
|
21,338
|
41,709
|
|
7.093%, 11/1/2035
|
42,291
|
23,976
|
|
7.105%, 5/1/2038
|
24,524
|
26,042
|
|
7.112%, 5/1/2035
|
26,771
|
62,510
|
|
7.215%, 6/1/2033
|
63,520
|
95,516
|
|
7.244%, 8/1/2034
|
96,921
|
74,516
|
|
7.315%, 5/1/2035
|
76,509
|
137,814
|
|
7.431%, 7/1/2035
|
141,776
|
170,119
|
|
7.528%, 7/1/2035
|
175,009
|
|
TOTAL
|
3,905,943
|
|
|
Government National Mortgage Association ARM-0.0%
|
||
10,804
|
|
3.750%, 10/20/2029
|
10,732
|
6,617
|
|
4.625%, 1/20/2030
|
6,607
|
Principal
Amount
or Shares
|
|
|
Value
|
1
|
ADJUSTABLE RATE MORTGAGES-continued
|
||
|
Government National Mortgage Association ARM-continued
|
||
$ 6,670
|
|
4.875%, 5/20/2029
|
$ 6,663
|
|
TOTAL
|
24,002
|
|
|
TOTAL ADJUSTABLE RATE MORTGAGES
(IDENTIFIED COST $4,679,879)
|
4,646,683
|
|
|
ASSET-BACKED SECURITIES-2.0%
|
||
|
Auto Receivables-0.4%
|
||
638,566
|
1
|
Chesapeake Funding II LLC 2023-1A, Class A2, 6.603% (30-DAY AVERAGE SOFR +1.250%), 5/15/2035
|
642,518
|
|
Credit Card-0.6%
|
||
1,000,000
|
|
Citibank Credit Card Issuance Trust 2023-A1, Class A1, 5.240%, 12/8/2027
|
1,007,301
|
|
Student Loans-1.0%
|
||
206,278
|
|
Navient Student Loan Trust 2020-HA, Class A, 1.310%, 1/15/2069
|
192,001
|
668,590
|
|
Navient Student Loan Trust 2021-FA, Class A, 1.110%, 2/18/2070
|
585,734
|
703,332
|
|
Navient Student Loan Trust 2021-GA, Class A, 1.580%, 4/15/2070
|
623,452
|
389,064
|
1
|
SMB Private Education Loan Trust 2020-BA, Class A1B, 6.551% (CME Term SOFR 1 Month +1.214%), 7/15/2053
|
388,599
|
|
TOTAL
|
1,789,786
|
|
|
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $3,600,693)
|
3,439,605
|
|
|
INVESTMENT COMPANY-3.0%
|
||
5,119,262
|
|
Federated Hermes Government Obligations Fund, Premier Shares, 5.21%3
(IDENTIFIED COST $5,119,262)
|
5,119,262
|
|
TOTAL INVESTMENT IN SECURITIES-101.1%
(IDENTIFIED COST $174,668,567)4
|
173,789,616
|
|
|
OTHER ASSETS AND LIABILITIES - NET-(1.1)%5
|
(1,937,016)
|
|
|
TOTAL NET ASSETS-100%
|
$171,852,600
|
|
Federated Hermes
Government
Obligations Fund,
Premier Shares
|
Value as of 8/31/2023
|
$2,462,587
|
Purchases at Cost
|
$107,955,072
|
Proceeds from Sales
|
$(105,298,397)
|
Change in Unrealized Appreciation/Depreciation
|
$-
|
Net Realized Gain/(Loss)
|
$-
|
Value as of 8/31/2024
|
$5,119,262
|
Shares Held as of 8/31/2024
|
5,119,262
|
Dividend Income
|
$314,676
|
1
|
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.
|
2
|
All or a portion of these To Be Announced Securities (TBAs) are subject to dollar-roll transactions.
|
3
|
7-day net yield.
|
4
|
The cost of investments for federal tax purposes amounts to $174,668,563.
|
5
|
Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.
|
Valuation Inputs
|
||||
|
Level 1-
Quoted
Prices
|
Level 2-
Other
Significant
Observable
Inputs
|
Level 3-
Significant
Unobservable
Inputs
|
Total
|
Debt Securities:
|
||||
Collateralized Mortgage Obligations
|
$-
|
$122,987,993
|
$-
|
$122,987,993
|
Mortgage-Backed Securities
|
-
|
17,347,604
|
-
|
17,347,604
|
Commercial Mortgage-Backed Securities
|
-
|
12,128,318
|
-
|
12,128,318
|
U.S. Treasuries
|
-
|
8,120,151
|
-
|
8,120,151
|
Adjustable Rate Mortgages
|
-
|
4,646,683
|
-
|
4,646,683
|
Asset-Backed Securities
|
-
|
3,439,605
|
-
|
3,439,605
|
Investment Company
|
5,119,262
|
-
|
-
|
5,119,262
|
TOTAL SECURITIES
|
$5,119,262
|
$168,670,354
|
$-
|
$173,789,616
|
The following acronym(s) are used throughout this portfolio:
|
|
ARM
|
-Adjustable Rate Mortgage
|
FHLMC
|
-Federal Home Loan Mortgage Corporation
|
FNMA
|
-Federal National Mortgage Association
|
REMIC
|
-Real Estate Mortgage Investment Conduit
|
SOFR
|
-Secured Overnight Financing Rate
|
|
Year Ended August 31,
|
||||
|
2024
|
2023
|
2022
|
2021
|
2020
|
Net Asset Value, Beginning of Period
|
$9.22
|
$9.48
|
$9.63
|
$9.65
|
$9.67
|
Income From Investment Operations:
|
|||||
Net investment income (loss)2
|
0.49
|
0.37
|
0.05
|
0.02
|
0.15
|
Net realized and unrealized gain (loss)
|
0.14
|
(0.26)
|
(0.15)
|
(0.01)
|
(0.01)
|
Total From Investment Operations
|
0.63
|
0.11
|
(0.10)
|
0.01
|
0.14
|
Less Distributions:
|
|||||
Distributions from net investment income
|
(0.49)
|
(0.37)
|
(0.05)
|
(0.03)
|
(0.16)
|
Net Asset Value, End of Period
|
$9.36
|
$9.22
|
$9.48
|
$9.63
|
$9.65
|
Total Return3
|
7.06%
|
1.25%
|
(1.08)%
|
0.09%
|
1.42%
|
Ratios to Average Net Assets:
|
|||||
Net expenses4
|
0.55%
|
0.55%
|
0.55%
|
0.53%
|
0.52%
|
Net investment income
|
5.31%
|
3.96%
|
0.48%
|
0.26%
|
1.63%
|
Expense waiver/reimbursement5
|
0.29%
|
0.29%
|
0.26%
|
0.31%
|
0.35%
|
Supplemental Data:
|
|||||
Net assets, end of period (000 omitted)
|
$36,450
|
$29,438
|
$33,685
|
$74,655
|
$93,198
|
Portfolio turnover6
|
48%
|
44%
|
54%
|
82%
|
80%
|
Portfolio turnover (excluding purchases and sales from dollar-roll transactions)6
|
25%
|
42%
|
53%
|
51%
|
67%
|
1
|
Effective at the start of business on July 28, 2022, the Fund's Service Shares were re-designated as Class A Shares.
|
2
|
Per share numbers have been calculated using the average shares method.
|
3
|
Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.
|
4
|
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
|
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.
|
6
|
Securities that mature are considered sales for purposes of this calculation.
|
|
Year Ended August 31,
|
||||
|
2024
|
2023
|
2022
|
2021
|
2020
|
Net Asset Value, Beginning of Period
|
$9.22
|
$9.48
|
$9.63
|
$9.65
|
$9.67
|
Income From Investment Operations:
|
|||||
Net investment income (loss)1
|
0.52
|
0.38
|
0.09
|
0.05
|
0.17
|
Net realized and unrealized gain (loss)
|
0.14
|
(0.24)
|
(0.17)
|
(0.02)
|
(0.01)
|
Total From Investment Operations
|
0.66
|
0.14
|
(0.08)
|
0.03
|
0.16
|
Less Distributions:
|
|||||
Distributions from net investment income
|
(0.52)
|
(0.40)
|
(0.07)
|
(0.05)
|
(0.18)
|
Net Asset Value, End of Period
|
$9.36
|
$9.22
|
$9.48
|
$9.63
|
$9.65
|
Total Return2
|
7.33%
|
1.50%
|
(0.84)%
|
0.31%
|
1.64%
|
Ratios to Average Net Assets:
|
|||||
Net expenses3
|
0.30%
|
0.30%
|
0.30%
|
0.30%
|
0.30%
|
Net investment income
|
5.57%
|
4.10%
|
0.93%
|
0.47%
|
1.78%
|
Expense waiver/reimbursement4
|
0.28%
|
0.29%
|
0.26%
|
0.31%
|
0.34%
|
Supplemental Data:
|
|||||
Net assets, end of period (000 omitted)
|
$135,402
|
$95,018
|
$156,311
|
$65,393
|
$60,878
|
Portfolio turnover5
|
48%
|
44%
|
54%
|
82%
|
80%
|
Portfolio turnover (excluding purchases and sales from dollar-roll transactions)5
|
25%
|
42%
|
53%
|
51%
|
67%
|
1
|
Per share numbers have been calculated using the average shares method.
|
2
|
Based on net asset value.
|
3
|
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
|
4
|
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.
|
5
|
Securities that mature are considered sales for purposes of this calculation.
|
Assets:
|
|
Investment in securities, at value including $5,119,262 of investments in affiliated holdings* (identified cost $174,668,567, including
$5,119,262 of identified cost in affiliated holdings)
|
$173,789,616
|
Income receivable
|
374,467
|
Income receivable from affiliated holdings
|
17,551
|
Receivable for investments sold
|
3,219
|
Receivable for shares sold
|
245,332
|
Total Assets
|
174,430,185
|
Liabilities:
|
|
Payable for investments purchased
|
1,991,276
|
Payable for shares redeemed
|
377,566
|
Bank overdraft
|
820
|
Income distribution payable
|
159,260
|
Payable to adviser (Note 5)
|
217
|
Payable for administrative fee (Note 5)
|
726
|
Payable for Directors'/Trustees' fees (Note 5)
|
499
|
Payable for other service fees (Notes 2 and 5)
|
7,195
|
Accrued expenses (Note 5)
|
40,026
|
Total Liabilities
|
2,577,585
|
Net assets for 18,359,719 shares outstanding
|
$171,852,600
|
Net Assets Consist of:
|
|
Paid-in capital
|
$178,174,105
|
Total distributable earnings (loss)
|
(6,321,505)
|
Total Net Assets
|
$171,852,600
|
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
|
|
Class A Shares:
|
|
Net asset value per share ($36,450,464 ÷ 3,894,059 shares outstanding), no par value, unlimited shares authorized
|
$9.36
|
Offering price per share (100/99.00 of $9.36)
|
$9.45
|
Redemption proceeds per share
|
$9.36
|
Institutional Shares:
|
|
Net asset value per share ($135,402,136 ÷ 14,465,660 shares outstanding), no par value, unlimited shares authorized
|
$9.36
|
Offering price per share
|
$9.36
|
Redemption proceeds per share
|
$9.36
|
*
|
See information listed after the Fund's Portfolio of Investments.
|
Investment Income:
|
|
Interest
|
$7,959,079
|
Dividends received from affiliated holdings*
|
314,676
|
TOTAL INCOME
|
8,273,755
|
Expenses:
|
|
Investment adviser fee (Note 5)
|
352,376
|
Administrative fee (Note 5)
|
112,761
|
Custodian fees
|
21,764
|
Transfer agent fees
|
88,489
|
Directors'/Trustees' fees (Note 5)
|
6,902
|
Auditing fees
|
36,800
|
Legal fees
|
10,695
|
Portfolio accounting fees
|
110,335
|
Other service fees (Notes 2 and 5)
|
75,809
|
Share registration costs
|
43,433
|
Printing and postage
|
22,533
|
Miscellaneous (Note 5)
|
25,242
|
TOTAL EXPENSES
|
907,139
|
Waiver and Reimbursements:
|
|
Waiver/reimbursement of investment adviser fee (Note 5)
|
(346,929)
|
Reimbursement of other operating expenses (Note 5)
|
(54,644)
|
TOTAL WAIVER AND REIMBURSEMENTS
|
(401,573)
|
Net expenses
|
505,566
|
Net investment income
|
7,768,189
|
Realized and Unrealized Gain (Loss) on Investments:
|
|
Net realized loss on investments
|
(337,277)
|
Net change in unrealized depreciation of investments
|
2,473,827
|
Net realized and unrealized gain (loss) on investments
|
2,136,550
|
Change in net assets resulting from operations
|
$9,904,739
|
*
|
See information listed after the Fund's Portfolio of Investments.
|
Year Ended August 31
|
2024
|
2023
|
Increase (Decrease) in Net Assets
|
||
Operations:
|
||
Net investment income
|
$7,768,189
|
$5,704,437
|
Net realized gain (loss)
|
(337,277)
|
(1,952,072)
|
Net change in unrealized appreciation/depreciation
|
2,473,827
|
(2,567,736)
|
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
|
9,904,739
|
1,184,629
|
Distributions to Shareholders:
|
||
Class A Shares
|
(1,627,907)
|
(1,221,428)
|
Institutional Shares
|
(6,159,308)
|
(4,527,856)
|
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS
|
(7,787,215)
|
(5,749,284)
|
Share Transactions:
|
||
Proceeds from sale of shares
|
104,676,379
|
58,276,312
|
Net asset value of shares issued to shareholders in payment of distributions declared
|
5,424,234
|
3,325,644
|
Cost of shares redeemed
|
(64,821,391)
|
(122,577,116)
|
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS
|
45,279,222
|
(60,975,160)
|
Change in net assets
|
47,396,746
|
(65,539,815)
|
Net Assets:
|
||
Beginning of period
|
124,455,854
|
189,995,669
|
End of period
|
$171,852,600
|
$124,455,854
|
|
Other Service
Fees Incurred
|
Class A Shares
|
$75,809
|
|
Year Ended
8/31/2024
|
Year Ended
8/31/2023
|
||
Class A Shares:
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares sold
|
1,477,945
|
$13,723,186
|
525,725
|
$4,887,955
|
Shares issued to shareholders in payment of distributions declared
|
159,000
|
1,475,096
|
116,091
|
1,078,969
|
Shares redeemed
|
(935,460)
|
(8,664,002)
|
(1,001,902)
|
(9,326,601)
|
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS
|
701,485
|
$6,534,280
|
(360,086)
|
$(3,359,677)
|
|
Year Ended
8/31/2024
|
Year Ended
8/31/2023
|
||
Institutional Shares:
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares sold
|
9,800,227
|
$90,953,193
|
5,730,338
|
$53,388,357
|
Shares issued to shareholders in payment of distributions declared
|
425,383
|
3,949,138
|
241,628
|
2,246,675
|
Shares redeemed
|
(6,064,895)
|
(56,157,389)
|
(12,154,554)
|
(113,250,515)
|
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS
|
4,160,715
|
$38,744,942
|
(6,182,588)
|
$(57,615,483)
|
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS
|
4,862,200
|
$45,279,222
|
(6,542,674)
|
$(60,975,160)
|
|
2024
|
2023
|
Ordinary income
|
$7,787,215
|
$5,749,284
|
Undistributed ordinary income
|
$5,957
|
Net unrealized depreciation
|
$(878,947)
|
Capital loss carryforwards
|
$(5,448,515)
|
TOTAL
|
$(6,321,505)
|
Short-Term
|
Long-Term
|
Total
|
$4,854,888
|
$593,627
|
$5,448,515
|
Administrative Fee
|
Average Daily Net Assets
of the Investment Complex
|
0.100%
|
on assets up to $50 billion
|
0.075%
|
on assets over $50 billion
|
Purchases
|
$995,703
|
Sales
|
$747,857
|
Item 8. | Changes in and Disagreements with Accountants for Open-End Management Investment Companies |
Federated Hermes Adjustable Rate Fund: Not Applicable.
Item 9. | Proxy Disclosures for Open-End Management Investment Companies. |
Federated Hermes Adjustable Rate Fund: Not Applicable.
Item 10. | Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. |
Federated Hermes Adjustable Rate Fund: The Fund's disclosure of remuneration items is included as part of the Financial Statements filed under Item 7 of this form.
Item 11. | Statement Regarding Basis for Approval of Investment Advisory Contract. |
Federated Hermes Adjustable Rate Fund: The Fund's Evaluation and Approval of Advisory Contract summary by fund appear in the Financial Statements filed under Item 7 of this form.
Item 12. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
Item 13. | Portfolio Managers of Closed-End Management Investment Companies. |
Not Applicable
Item 14. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not Applicable
Item 15. | Submission of Matters to a Vote of Security Holders. |
No Changes to Report
Item 16. | Controls and Procedures. |
(a) The registrant's Principal Executive Officer and Principal Financial Officer 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 as of a date within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
Item 17. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not Applicable
Item 18. | Recovery of Erroneously Awarded Compensation |
(a) Not Applicable
(b) Not Applicable
Item 19. | Exhibits |
(a)(1) Not Applicable.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(a)(4) 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 Adjustable Rate Securities Trust
By: /s/ Jeremy D. Boughton
Jeremy D. Boughton, Principal Financial Officer
Date: October 23, 2024
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 23, 2024
By: /s/ Jeremy D. Boughton
Jeremy D. Boughton, Principal Financial Officer
Date: October 23, 2024