NPORT-EX 2 poi_fhmdtsmallcapcorefd.htm POI - FEDERATED HERMES MDT SMALL CAP CORE FUND EDGAR HTML
Federated Hermes MDT Small Cap Core Fund
Portfolio of Investments
April 30, 2023 (unaudited)  
Shares
 
 
Value
          
 
COMMON STOCKS—98.0%
 
 
1
Communication Services—3.6%
 
1,273,985
 
Advantage Solutions, Inc.
$    1,630,701
70,835
 
AMC Networks, Inc.
    1,253,071
1,291,302
 
CarGurus, Inc.
   21,229,005
25,872
 
Cinemark Holdings, Inc.
      438,189
541,685
 
Eventbrite, Inc.
    3,938,050
1,104,805
 
iHeartMedia, Inc.
    3,833,673
41,568
 
Iridium Communications, Inc.
    2,638,321
51,048
 
Liberty Braves Group
    1,940,845
511,723
 
Vimeo Holdings, Inc.
    1,683,569
 
 
TOTAL
38,585,424
 
 
Consumer Discretionary—10.8%
 
201,225
1
2U, Inc.
    1,114,787
243,417
1
Abercrombie & Fitch Co., Class A
    5,730,036
496,597
2
Big Lots, Inc.
    4,464,407
108,580
 
Bloomin Brands, Inc.
    2,689,527
145,552
1
Chegg, Inc.
    2,617,025
511,384
 
Clarus Corp.
    4,975,766
373,788
1
Container Store Group, Inc.
    1,155,005
52,849
1
ContextLogic, Inc.
      381,041
48,566
1
Duolingo, Inc.
    6,612,747
389,225
1
Goodyear Tire & Rubber Co.
    4,153,031
302,720
1,2
Groupon, Inc.
    1,083,738
133,870
1
Inspired Entertainment, Inc.
    1,713,536
163,861
 
International Game Technology PLC
    4,611,049
62,622
1
Lumber Liquidators, Inc.
      206,026
31,893
1
MCBC Holdings, Inc.
      933,508
98,551
 
Murphy USA, Inc.
   27,124,192
9,840
1
ODP Corp./The
      425,186
87,603
1
Overstock.com, Inc.
    1,783,597
767,214
1
Qurate Retail, Inc.
      611,163
211,645
1,2
Red Robin Gourmet Burgers
    2,766,200
23,877
 
Red Rock Resorts, Inc.
    1,165,198
204,955
1
Revolve Group, Inc.
    4,232,321
840,886
1
Rush Street Interactive, Inc.
    2,615,155
85,074
1
Sally Beauty Holdings, Inc.
    1,210,603
191,094
1,2
Target Hospitality Corp.
    2,409,695
88,044
 
Texas Roadhouse, Inc.
    9,739,427
366,961
2
Tupperware Brands Corp.
      458,701
197,048
 
Upbound Group, Inc.
    5,253,300
2,229
1
Visteon Corp.
      312,929
169,446
 
Waterstone Financial, Inc.
    2,346,827
31,515
 
Wingstop, Inc.
    6,306,467
443,689
1,2
WW International, Inc.
    3,704,803
26,152
1
Xponential Fitness, Inc.
      865,108
 
 
TOTAL
115,772,101
 
 
Consumer Staples—5.0%
 
115,274
 
Cal-Maine Foods, Inc.
    5,475,515
1
Shares
 
 
Value
          
 
COMMON STOCKS—continued
 
 
 
Consumer Staples—continued
 
9,921
 
Coca-Cola Bottling Co.
$    5,848,033
200,237
1
elf Beauty, Inc.
   18,573,984
289,214
1
Hain Celestial Group, Inc.
    5,185,607
304,863
1
Hostess Brands, Inc.
    7,853,271
14,400
 
Ingles Markets, Inc., Class A
    1,325,376
81,876
 
Primo Water Corp.
    1,243,696
101,332
 
SpartanNash Co.
    2,484,661
125,811
1
Sprouts Farmers Market, Inc.
    4,360,609
32,728
 
Turning Point Brands, Inc.
      778,599
44,684
 
Vector Group Ltd.
      569,274
 
 
TOTAL
53,698,625
 
 
Energy—7.1%
 
102,648
1
Amplify Energy Corp.
      709,298
222,826
 
Ardmore Shipping Corp.
    3,273,314
220,469
1
Borr Drilling Ltd.
    1,532,260
34,814
 
Cactus, Inc.
    1,409,271
58,239
1
Callon Petroleum Corp.
    1,930,040
39,856
 
Championx Corp.
    1,079,301
83,426
 
CONSOL Energy, Inc.
    4,950,499
57,148
 
CVR Energy, Inc.
    1,505,278
71,669
 
Delek US Holdings, Inc.
    1,558,801
52,269
1
Dorian LPG Ltd.
    1,161,417
117,582
1
Gulf Island Fabrication, Inc.
      409,185
44,479
 
International Seaways, Inc.
    1,771,154
12,147
1
Nabors Industries Ltd.
    1,211,542
145,767
1
Oceaneering International, Inc.
    2,584,449
220,447
 
PBF Energy, Inc.
    7,684,782
52,641
 
RPC, Inc.
      389,017
132,832
 
Scorpio Tankers, Inc.
    6,940,472
93,866
 
SM Energy Co.
    2,635,757
262,450
1
Talos Energy, Inc.
    3,577,194
427,069
1
US Silica Holdings, Inc.
    5,573,250
63,665
1
Vital Energy, Inc.
    2,962,332
324,898
1
Weatherford International PLC
   20,998,158
 
 
TOTAL
75,846,771
 
 
Financials—14.4%
 
11,680
 
1st Source Corp.
      486,822
482,223
 
Amalgamated Financial Corp.
    7,850,590
21,339
 
Amerant Bancorp, Inc
      396,905
80,935
 
American Equity Investment Life Holding Co.
    3,119,235
359,971
1
AvidXchange Holdings, Inc.
    2,674,585
25,561
 
BancFirst Corp.
    2,042,068
47,556
 
BCB Bancorp, Inc.
      561,161
430,046
 
Byline Bancorp, Inc.
    8,321,390
221,121
1
Cantaloupe, Inc.
    1,218,377
200,705
 
CNO Financial Group, Inc.
    4,503,820
15,964
1
Coastal Financial Corp.
      578,695
275,681
1
Customers Bancorp, Inc.
    6,020,873
73,836
 
CVB Financial Corp.
    1,105,325
18,400
 
Equity Bancshares, Inc.
      433,320
70,182
 
Financial Institutions, Inc.
    1,226,781
15,195
 
First Bancorp, Inc.
      467,702
2
Shares
 
 
Value
          
 
COMMON STOCKS—continued
 
 
 
Financials—continued
 
30,902
 
First Business Financial Services, Inc.
$      886,578
399,895
 
First Foundation, Inc.
    2,515,340
37,300
 
Fulton Financial Corp.
      444,989
742,357
1
Genworth Financial, Inc., Class A
    4,313,094
1,071,916
1
Green Dot Corp.
   18,426,236
22,838
 
Heartland Financial USA, Inc.
      743,605
75,475
 
Heritage Commerce Corp.
      641,538
82,311
 
Heritage Financial Corp.
    1,449,497
41,822
 
HomeStreet, Inc.
      408,183
82,788
 
Hometrust Bancshares, Inc.
    1,727,786
115,519
 
Independent Bank Corp.- Michigan
    2,058,549
126,044
2
Invesco Mortgage Capital, Inc.
    1,337,327
205,617
 
Jackson Financial, Inc.
    7,404,268
29,808
 
Kinsale Capital Group, Inc.
    9,738,572
70,935
1
LendingClub Corp.
      509,313
189,073
1
LendingTree, Inc.
    4,505,610
435,068
 
Live Oak Bancshares, Inc.
   10,250,202
89,200
1,2
NerdWallet, Inc.
    1,210,444
104,810
 
OFG Bancorp.
    2,679,992
91,560
1
Open Lending
      643,667
169,273
1
Paysafe Ltd.
    2,430,760
48,266
 
Peapack-Gladstone Financial Corp.
    1,281,945
27,542
 
Preferred Bank Los Angeles, CA
    1,324,219
354,368
 
ProAssurance Corp.
    6,364,449
425,586
1
PROG Holdings, Inc.
   12,865,465
106,522
 
QCR Holdings, Inc.
    4,410,011
231,876
1
Remitly Global, Inc.
    3,895,517
26,721
 
RLI Corp.
    3,715,555
290,018
1
SelectQuote, Inc.
      307,419
53,720
 
Tiptree, Inc.
      739,724
40,121
 
TriCo Bancshares
    1,436,733
22,508
1
Triumph Financial, Inc.
    1,169,516
7,916
 
WestAmerica Bancorp.
      320,677
150,981
 
Western New England Bancorp, Inc.
    1,022,141
 
 
TOTAL
154,186,570
 
 
Health Care—16.7%
 
199,467
1
Alector, Inc.
    1,316,482
13,882
1
Alkermes, Inc.
      396,331
777,071
1
Allakos, Inc.
    3,302,552
67,520
1
Alphatec Holdings, Inc.
      974,989
467,974
1
Alx Oncology Holdings, Inc.
    2,779,766
13,636
1
AMN Healthcare Services, Inc.
    1,177,469
147,694
1
Amphastar Pharmaceuticals, Inc.
    5,283,014
10,463
1
Apellis Pharmaceuticals, Inc.
      872,928
62,498
1
Arcellx, Inc.
    2,667,415
808,040
1
Atea Pharmaceuticals, Inc.
    2,642,291
224,489
1
Bridgebio Pharma, Inc.
    3,259,580
693,683
1
Cara Therapeutics, Inc.
    2,913,469
873,370
1
Codexis, Inc.
    3,423,610
44,584
1
Collegium Pharmaceutical, Inc.
    1,037,470
1,220,959
1
Community Health Systems, Inc.
    7,740,880
332,942
1
Cross Country Healthcare, Inc.
    7,318,065
3
Shares
 
 
Value
          
 
COMMON STOCKS—continued
 
 
 
Health Care—continued
 
74,677
1
DICE Therapeutics, Inc.
$    2,427,003
243,182
1
Dyne Therapeutics, Inc.
    2,519,366
24,464
1
Eagle Pharmaceuticals, Inc.
      686,949
438,824
1
Emergent BioSolutions, Inc.
    3,874,816
828,791
1
Fate Therapeutics, Inc.
    5,030,761
13,591
1
Fulgent Genetics, Inc.
      401,886
500,507
1,2
Gossamer Bio, Inc.
      645,654
7,784
1
Haemonetics Corp.
      651,599
429,850
1
Hims & Hers Health, Inc.
    4,981,961
32,501
1
Immunovant, Inc.
      524,566
111,540
1,2
Innovage Holding Corp.
      681,509
154,659
1
Inogen, Inc.
    2,058,511
33,626
1
Intercept Group, Inc.
      582,402
83,990
1
Kodiak Sciences, Inc.
      367,876
148,710
1
Lantheus Holdings, Inc.
   12,707,269
16,540
1
Ligand Pharmaceuticals, Inc., Class B
    1,262,829
67,607
1
Livanova PLC
    3,238,375
647,010
1
MacroGenics, Inc.
    4,457,899
1,778
1
Medpace Holdings, Inc.
      355,849
362,522
1
MiMedx Group, Inc.
    1,388,459
68,313
1
NanoString Technologies, Inc.
      669,467
1,758,500
1
Nektar Therapeutics
    1,322,920
268,739
1
NeoGenomics, Inc.
    3,928,964
212,442
1
Nevro Corp.
    6,218,177
108,006
1
NGM Biopharmaceuticals, Inc.
      487,107
273,950
1
Nuvation Bio, Inc.
      441,060
126,561
1
Omnicell, Inc.
    7,691,112
201,520
1
OptimizeRX Corp.
    3,028,846
386,559
1
OraSure Technologies, Inc.
    2,628,601
1,122,607
1
Organogenesis Holdings, Inc.
    2,301,344
66,896
1
Orthofix Medical, Inc.
    1,259,652
66,850
 
Owens & Minor, Inc.
    1,038,849
191,448
1
Pacira BioSciences, Inc.
    8,674,509
157,938
1
Pediatrix Medical Group
    2,263,252
18,680
1
Phreesia, Inc.
      591,035
840,213
1
PMV Pharmaceuticals, Inc.
    3,873,382
11,817
1
Prestige Consumer Healthcare, Inc.
      727,100
51,157
1
Privia Health Group, Inc.
    1,413,468
27,873
1
Protagonist Therapeutics, Inc.
      629,930
34,589
1
Revance Therapeutics, Inc.
    1,100,968
2,526,547
1
Siga Technologies, Inc.
   14,729,769
71,763
1
Supernus Pharmaceuticals, Inc.
    2,645,184
202,124
1
Tactile Systems Technology, Inc.
    3,684,721
240,775
1
The Joint Corp.
    3,801,837
848,046
1
Vanda Pharmaceuticals, Inc.
    5,207,002
40,378
1,2
Viridian Therapeutics, Inc.
    1,131,795
274,488
1
Voyager Therapeutics, Inc.
    1,990,038
 
 
TOTAL
179,431,939
 
 
Industrials—16.1%
 
7,906
1
Allegiant Travel Co.
      821,512
25,471
1
ASGN, Inc.
    1,823,469
71,822
1
Atkore, Inc.
    9,073,273
4
Shares
 
 
Value
          
 
COMMON STOCKS—continued
 
 
 
Industrials—continued
 
17,596
1
Beacon Roofing Supply, Inc.
$    1,058,927
195,661
 
Boise Cascade Co.
   13,365,603
8,115
1
CBIZ, Inc.
      427,579
167,066
1
CECO Environmental Corp.
    1,939,636
93,262
1
Concrete Pumping Holdings, Inc.
      648,171
466,259
1
Conduent, Inc.
    1,636,569
14,273
2
Eagle Bulk Shipping, Inc.
      638,289
63,926
 
Emcor Group, Inc.
   10,931,346
56,132
1
Exlservice Holding, Inc.
   10,012,826
113,927
1
Forrester Research, Inc.
    3,524,901
115,722
1
Franklin Covey Co.
    4,249,312
45,021
 
Genco Shipping & Trading Ltd.
      693,774
287,114
1
GMS, Inc.
   16,669,839
962,832
 
GrafTech International Ltd.
    4,534,939
1,927,499
1
Harsco Corp.
   13,241,918
39,446
 
Healthcare Services Group, Inc.
      615,752
77,964
 
Heidrick & Struggles International, Inc.
    1,957,676
95,271
1
Heritage-Crystal Clean, Inc.
    3,330,674
5,935
1
Hub Group, Inc.
      447,499
83,808
 
Hurco Co., Inc.
    1,879,813
52,535
1
Huron Consulting Group, Inc.
    4,454,443
75,818
 
Hyster-Yale Materials Handling, Inc.
    3,992,576
228,478
1
JELD-WEN Holding, Inc.
    2,919,949
250,392
1
Manitowoc, Inc.
    3,828,494
523,165
1
Mistras Group, Inc.
    4,248,100
226,902
1
MRC Global, Inc.
    2,210,025
259,250
1
Now, Inc.
    2,766,198
339,828
1
Parsons Corp.
   14,782,518
51,711
 
Resources Connection, Inc.
      754,464
361,906
1
SkyWest, Inc.
   10,241,940
7,275
 
Tennant Co.
      555,956
129,182
 
Terex Corp.
    5,760,225
163,330
1
Thermon Group Holdings, Inc.
    3,393,997
95,360
1
TrueBlue, Inc.
    1,444,704
108,918
1
Tutor Perini Corp.
      577,265
21,743
 
Universal Truckload Services, Inc.
      556,621
60,791
 
Veritiv Corp.
    6,983,062
2,381
 
Watts Industries, Inc., Class A
      385,079
 
 
TOTAL
173,378,913
 
 
Information Technology—11.3%
 
558,677
1
8x8, Inc.
    1,603,403
457,328
1
Brightcove, Inc.
    1,893,338
108,033
 
Comtech Telecommunications Corp.
    1,118,142
378,823
1,2
Diebold Nixdorf, Inc.
      305,672
218,813
1
Digital Turbine, Inc.
    2,566,676
66,230
1
Extreme Networks, Inc.
    1,177,569
7,280
1
Fabrinet
      691,236
266,922
1
Faro Technologies, Inc.
    6,232,629
45,832
1
Impinj, Inc.
    4,052,007
312,091
1
Intapp, Inc.
   12,583,509
354,777
1
LivePerson, Inc.
    1,642,618
698,016
1
LiveRamp Holdings, Inc.
   16,815,205
5
Shares
 
 
Value
          
 
COMMON STOCKS—continued
 
 
 
Information Technology—continued
 
162,417
1
MaxLinear, Inc.
$    3,919,122
120,844
1
Mitek Systems, Inc.
    1,090,013
208,010
1
Model N, Inc.
    6,406,708
750,808
1
ON24, Inc.
    6,532,030
83,686
1,2
Ouster, Inc.
      296,248
20,070
1
Q2 Holdings, Inc.
      494,123
3,148
1
Qualys, Inc.
      355,535
918,381
1,2
Rackspace Technology, Inc.
    1,340,836
399,360
1
Ribbon Communications, Inc.
    1,022,362
254,016
1
Rimini Street, Inc.
      950,020
124,574
 
Sapiens International Corp. NV
    2,507,675
174,347
1
Secureworks Corp.
    1,581,327
636,078
1
Semtech Corp.
   12,397,160
479,546
1
SolarWinds Corp.
    4,133,687
289,555
1
Squarespace, Inc.
    9,005,161
3,581
1
Synaptics, Inc.
      316,794
1,080,784
1
Telos Corp.
    1,837,333
494,342
1
Unisys Corp.
    1,586,838
69,141
1
Upland Software, Inc.
      253,747
385,099
1
Varonis Systems, Inc.
    8,918,893
20,713
1
Vishay Precision Group, Inc.
      777,566
549,677
1
Yext, Inc.
    4,826,164
 
 
TOTAL
121,231,346
 
 
Materials—4.8%
 
91,249
1
ATI, Inc.
    3,524,036
86,576
 
Commercial Metals Corp.
    4,042,233
395,329
1
Intrepid Potash, Inc.
   10,191,582
12,857
 
Koppers Holdings, Inc.
      421,838
56,863
 
Kronos Worldwide, Inc.
      528,826
461,279
1
LSB Industries, Inc.
    4,119,222
100,654
 
Myers Industries, Inc.
    1,907,393
356,204
1
O-I Glass, Inc.
    8,003,904
788,569
1
Ranpak Holdings Corp.
    3,217,362
637,949
 
SunCoke Energy, Inc.
    4,963,243
135,265
 
Sylvamo Corp.
    6,197,842
138,814
 
Warrior Met Coal, Inc.
    4,798,800
 
 
TOTAL
51,916,281
 
 
Real Estate—5.5%
 
33,431
 
Alexander and Baldwin, Inc.
      642,878
506,796
1
Anywhere Real Estate, Inc.
    3,228,291
444,640
 
Apartment Investment & Management Co., Class A
    3,481,531
85,262
 
Apple Hospitality REIT, Inc.
    1,269,551
183,908
 
Armada Hoffler Properties, Inc.
    2,155,402
2,370,165
 
Brandywine Realty Trust
    9,314,749
381,083
 
City Office REIT, Inc.
    2,217,903
58,024
 
Gladstone Land Corp.
      934,767
219,465
 
Global Net Lease, Inc.
    2,471,176
74,328
 
Hersha Hospitality Trust
      468,266
496,246
 
Macerich Co. (The)
    4,957,498
197,740
 
Marcus & Millichap Co., Inc.
    6,222,878
710,116
 
Newmark Group, Inc.
    4,502,135
136,722
 
Office Properties Income Trust
      891,427
6
Shares
 
 
Value
          
 
COMMON STOCKS—continued
 
 
 
Real Estate—continued
 
883,067
1,2
Redfin Corp.
$    6,578,849
309,452
 
RMR Group, Inc./The
    7,349,485
136,272
 
Service Properties Trust
    1,195,105
197,477
 
Uniti Group, Inc.
      675,371
72,786
 
Whitestone Project
      651,435
 
 
TOTAL
59,208,697
 
 
Utilities—2.7%
 
7,820
 
Chesapeake Utilities Corp.
      965,770
339,281
 
Clearway Energy, Inc.
    9,832,363
24,247
 
New Jersey Resources Corp.
    1,252,115
5,759
 
ONE Gas, Inc.
      443,155
127,718
2
Otter Tail Corp.
    9,189,310
146,791
 
Portland General Electric Co.
    7,430,561
 
 
TOTAL
29,113,274
 
 
TOTAL COMMON STOCKS
(IDENTIFIED COST $1,040,612,997)
1,052,369,941
 
 
INVESTMENT COMPANIES—4.0%
 
22,691,114
 
Federated Hermes Government Obligations Fund, Premier Shares, 4.72%3
   22,691,114
20,321,952
 
Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 4.87%3
   20,319,920
 
 
TOTAL INVESTMENT COMPANIES
(IDENTIFIED COST $43,010,139)
43,011,034
 
 
TOTAL INVESTMENT IN SECURITIES—102.0%
(IDENTIFIED COST $1,083,623,136)
1,095,380,975
 
 
OTHER ASSETS AND LIABILITIES - NET—(2.0)%4
(21,952,569)
 
 
TOTAL NET ASSETS—100%
$1,073,428,406
An affiliated company is a company in which the Fund, alone or in combination with other Federated Hermes funds, has ownership of at least 5% of the voting shares. Transactions with the affiliated companies during the period ended April 30, 2023, were as follows:  
Affiliated
Value as of
7/31/2022
Purchases
at Cost
Proceeds
from Sales
Change in
Unrealized
Appreciation/
Depreciation
Net
Realized Gain/
(Loss)
Value as of
4/30/2023
Shares
Held as of
4/30/2023
Dividend
Income
Health Care:
 
 
 
 
 
 
 
 
Alector, Inc.**
$9,059,233
$1,318,365
$(7,721,877)
$2,782,044
$(4,121,283)
$1,316,482
199,467
$—
Amphastar Pharmaceuticals, Inc.
$2,935,115
$2,655,726
$(375,722)
$(70,848)
$138,743
$5,283,014
147,694
$—
Siga Technologies, Inc.
$—
$16,276,661
$—
$(1,546,892)
$—
$14,729,769
2,526,547
$—
Information Technology:
 
 
 
 
 
 
 
 
Brightcove, Inc.**
$8,244,421
$—
$(5,052,525)
$2,083,640
$(3,382,198)
$1,893,338
457,328
$—
Affiliated issuers no longer in the portfolio at
period end
$3,522,384
$—
$(3,579,977)
$1,912,934
$(1,855,341)
$—
—
$—
TOTAL OF AFFILIATED COMPANIES
TRANSACTIONS
$23,761,153
$20,250,752
$(16,730,101)
$5,160,878
$(9,220,079)
$23,222,603
3,331,036
$—
 
**
At April 30, 2023, the Fund no longer has ownership of at least 5% of the voting shares.
7
Transactions with affiliated investment companies, which are funds managed by the Adviser or an affiliate of the Adviser, during the period ended April 30, 2023, were as follows:  
 
Federated
Hermes
Government
Obligations Fund,
Premier Shares*
Federated
Hermes
Institutional
Prime Value
Obligations Fund,
Institutional Shares
Total of
Affiliated
Transactions
Value as of 7/31/2022
$41,790,036
$24,461,888
$66,251,924
Purchases at Cost
$127,391,592
$264,466,719
$391,858,311
Proceeds from Sales
$(146,490,514)
$(268,623,141)
$(415,113,655)
Change in Unrealized Appreciation/Depreciation
$—
$(992)
$(992)
Net Realized Gain/(Loss)
$—
$15,446
$15,446
Value as of 4/30/2023
$22,691,114
$20,319,920
$43,011,034
Shares Held as of 4/30/2023
22,691,114
20,321,952
43,013,066
Dividend Income
$573,288
$570,609
$1,143,897
 
*
All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions.
 
1
Non-income-producing security.
2
All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. As of April 30, 2023, securities subject to this type of arrangement and
related collateral were as follows:
 
Fair Value of
Securities Loaned
Collateral
Received
$21,690,361
$22,691,114
 
3
7-day net yield.
4
Assets, other than investments in securities, less liabilities.
Note: The categories of investments are shown as a percentage of total net assets at April 30, 2023.
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
◾ Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
◾ 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.
◾ Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and ask quotations.
◾ Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by Federated MDTA LLC (the “Adviser”).
◾ For securities that are fair valued in accordance with procedures established by and under the general supervision of the Adviser, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.
If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Adviser’s valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion of the Adviser’s valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.
Fair Valuation and Significant Events Procedures
Pursuant to Rule 2a-5 under the Investment Company Act, the Fund’s Board of Trustees (the “Trustees”) has designated the Adviser as the Fund’s valuation designee to perform any fair value determinations for securities and other assets held by the Fund. The Adviser is subject to the Trustees’ oversight and certain reporting and other requirements intended to provide the Trustees the information needed to oversee the Adviser’s fair value determinations.
The Adviser, acting through its Valuation Committee, is responsible for determining the fair value of investments for which market quotations are not readily available. The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser’s affiliated companies and determines fair value and oversees the calculation of the NAV. The Valuation Committee is also authorized to use pricing services to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The
8
Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Adviser. The Trustees periodically review the fair valuations made by the Valuation Committee. The Trustees have also approved the Adviser’s fair valuation and significant events procedures as part of the Fund’s compliance program and will review any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and ask for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Adviser.
The Adviser has also adopted procedures requiring an investment to be priced at its fair value whenever the Valuation Committee determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
◾ With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;
◾ Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;
◾ Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
The Adviser has adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Valuation Committee will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Adviser. The Trustees periodically review fair valuations made in response to significant events.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
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.
As of April 30, 2023, all investments of the Fund utilized Level 1 inputs in valuing the Fund’s assets carried at fair value.  
The following acronym(s) are used throughout this portfolio:
 
REIT
—Real Estate Investment Trust
9