NPORT-EX 2 poi_fhgovincfund.htm POI - FEDERATED HERMES GOVERNMENT INCOME FUND EDGAR HTML
Federated Hermes Government Income Fund
Portfolio of Investments
October 31, 2021 (unaudited)  
Principal
Amount
or Shares
 
 
Value
          
1
MORTGAGE-BACKED SECURITIES—95.6%
 
 
 
Federal Home Loan Mortgage Corporation—26.9%
 
$ 2,822,710
 
1.500%, 11/1/2050
$2,736,269  
 3,644,840
 
2.000%, 6/1/2050
3,651,130  
 3,838,229
 
2.000%, 4/1/2051
3,841,254  
 8,034,619
 
3.000%, 1/1/2046
8,601,302  
10,423,249
 
3.000%, 10/1/2050
10,978,439 
 4,874,852
 
3.500%, 4/1/2050
5,166,239  
 7,986,004
 
3.500%, 4/1/2050
8,534,482  
 4,129,739
 
4.000%, 4/1/2049
4,531,136  
   104,315
 
4.000%, 6/1/2049
111,520    
 1,870,864
 
4.000%, 4/1/2050
2,000,235  
   106,717
 
4.500%, 3/1/2024
110,561    
   212,046
 
4.500%, 11/1/2039
235,484    
   295,064
 
4.500%, 5/1/2040
327,891    
   447,307
 
4.500%, 6/1/2040
497,331    
    87,937
 
4.500%, 9/1/2040
97,353     
    50,523
 
5.000%, 8/1/2023
51,948     
     1,453
 
5.500%, 12/1/2021
1,455      
       424
 
5.500%, 1/1/2022
424        
       498
 
5.500%, 1/1/2022
499        
       998
 
5.500%, 1/1/2022
999        
   458,235
 
5.500%, 5/1/2034
521,039    
    17,715
 
5.500%, 12/1/2035
20,331     
    63,551
 
5.500%, 3/1/2036
73,342     
   186,715
 
5.500%, 1/1/2038
215,552    
    84,587
 
5.500%, 3/1/2038
97,859     
    66,811
 
5.500%, 11/1/2038
77,534     
    64,307
 
5.500%, 1/1/2039
74,404     
    64,629
 
6.000%, 3/1/2038
75,742     
    15,910
 
6.500%, 9/1/2029
17,782     
    28,025
 
7.000%, 2/1/2031
33,043     
    28,794
 
7.000%, 10/1/2031
32,557     
    21,415
 
7.000%, 1/1/2032
25,436     
    31,593
 
7.000%, 3/1/2032
36,512     
    52,783
 
7.500%, 6/1/2027
59,137     
     4,111
 
7.500%, 1/1/2031
4,781      
    65,879
 
7.500%, 2/1/2031
76,321     
 
 
TOTAL
52,917,323
 
 
Federal National Mortgage Association—51.4%
 
11,992,240
 
2.000%, 9/1/2050
12,009,186 
 5,314,159
 
2.000%, 11/1/2050
5,321,668  
 5,327,799
 
2.000%, 5/1/2051
5,331,998  
 5,927,129
 
2.500%, 10/1/2050
6,093,023  
 1,434,427
 
3.000%, 6/1/2027
1,504,816  
   915,284
 
3.000%, 7/1/2027
960,198    
 1,176,583
 
3.000%, 8/1/2045
1,243,757  
1
Principal
Amount
or Shares
 
 
Value
          
1
MORTGAGE-BACKED SECURITIES—continued
 
 
 
Federal National Mortgage Association—continued
 
$ 9,398,357
 
3.000%, 10/1/2046
$9,955,494  
 3,887,493
 
3.000%, 9/1/2047
4,132,523  
 8,791,398
 
3.000%, 3/1/2050
9,241,124  
 3,468,854
 
3.500%, 12/1/2041
3,746,390  
 1,748,660
 
3.500%, 9/1/2042
1,892,938  
   210,438
 
3.500%, 9/1/2042
227,143    
   560,966
 
3.500%, 12/1/2042
605,497    
 4,342,305
 
3.500%, 5/1/2049
4,657,970  
 3,694,456
 
3.500%, 9/1/2049
3,976,187  
 3,580,265
 
3.500%, 12/1/2049
3,833,989  
 3,998,260
 
3.500%, 12/1/2049
4,272,859  
 1,868,268
 
4.000%, 12/1/2031
2,019,644  
 1,179,162
 
4.000%, 12/1/2041
1,289,443  
 5,101,277
 
4.000%, 12/1/2041
5,595,909  
 1,072,022
 
4.000%, 6/1/2042
1,170,608  
 3,029,663
 
4.000%, 12/1/2042
3,324,373  
 1,616,264
 
4.500%, 9/1/2041
1,794,394  
   522,644
 
4.500%, 10/1/2041
578,612    
 1,056,942
 
4.500%, 11/1/2041
1,170,126  
   148,925
 
4.500%, 11/1/2041
164,872    
 1,905,488
 
4.500%, 8/1/2049
2,100,309  
    54,664
 
5.000%, 10/1/2023
56,432     
    33,823
 
5.000%, 4/1/2024
35,095     
   579,247
 
5.000%, 1/1/2040
651,943    
   232,052
 
5.500%, 12/1/2035
265,715    
       748
 
6.000%, 2/1/2022
750        
   460,046
 
6.000%, 2/1/2033
526,874    
    24,288
 
6.000%, 5/1/2036
28,322     
    92,882
 
6.000%, 7/1/2036
108,487    
   246,868
 
6.000%, 1/1/2037
288,159    
    21,734
 
6.000%, 9/1/2037
25,417     
    34,873
 
6.000%, 9/1/2037
40,822     
    65,335
 
6.000%, 6/1/2038
76,242     
    67,488
 
6.000%, 8/1/2038
78,878     
    37,328
 
6.000%, 10/1/2038
43,764     
       622
 
6.500%, 12/1/2027
685        
     2,660
 
6.500%, 6/1/2029
3,029      
     7,794
 
6.500%, 7/1/2029
8,865      
     5,672
 
6.500%, 8/1/2029
6,423      
     1,339
 
6.500%, 8/1/2029
1,516      
   120,822
 
6.500%, 5/1/2032
139,402    
    23,747
 
6.500%, 12/1/2035
28,204     
   262,480
 
6.500%, 8/1/2037
314,064    
    62,843
 
6.500%, 9/1/2037
75,597     
       870
 
7.000%, 7/1/2029
997        
     1,288
 
7.000%, 9/1/2029
1,311      
       117
 
7.000%, 10/1/2031
127        
    44,606
 
7.000%, 11/1/2031
52,923     
    42,704
 
7.000%, 12/1/2031
50,694     
    11,785
 
7.000%, 12/1/2031
13,983     
2
Principal
Amount
or Shares
 
 
Value
          
1
MORTGAGE-BACKED SECURITIES—continued
 
 
 
Federal National Mortgage Association—continued
 
$    12,491
 
7.000%, 12/1/2031
$14,677     
     5,039
 
7.000%, 1/1/2032
5,936      
    30,730
 
7.000%, 2/1/2032
36,587     
    16,028
 
7.500%, 7/1/2028
18,342     
    26,349
 
7.500%, 8/1/2031
30,984     
    47,845
 
8.000%, 12/1/2026
53,288     
 
 
TOTAL
101,299,584
 
 
Government National Mortgage Association—4.3%
 
 4,934,777
 
3.000%, 9/20/2050
5,120,269  
   130,841
 
5.500%, 4/15/2034
146,688    
   327,096
 
5.500%, 6/15/2034
367,518    
    42,898
 
6.000%, 1/15/2032
48,825     
   134,037
 
6.000%, 5/15/2036
154,802    
     4,720
 
6.500%, 5/15/2027
5,184      
     3,985
 
6.500%, 1/15/2029
4,486      
    10,703
 
6.500%, 1/15/2029
11,979     
     5,550
 
6.500%, 1/20/2029
6,168      
     3,283
 
6.500%, 2/15/2029
3,521      
     1,836
 
6.500%, 3/20/2029
2,048      
     2,732
 
6.500%, 5/20/2029
3,054      
     6,810
 
6.500%, 7/20/2029
7,619      
     3,045
 
6.500%, 8/20/2029
3,409      
     1,584
 
6.500%, 10/20/2029
1,766      
     3,205
 
6.500%, 11/20/2029
3,605      
     2,518
 
6.500%, 10/20/2030
2,845      
     3,646
 
6.500%, 4/20/2031
4,140      
     2,021
 
6.500%, 5/20/2031
2,295      
    10,626
 
6.500%, 6/20/2031
12,075     
     2,409
 
6.500%, 7/15/2031
2,756      
       708
 
6.500%, 7/15/2031
813        
     2,988
 
6.500%, 7/20/2031
3,398      
     3,195
 
6.500%, 10/20/2031
3,638      
     2,715
 
6.500%, 11/20/2031
3,093      
     8,091
 
6.500%, 1/20/2032
9,206      
   113,582
 
6.500%, 10/20/2038
133,205    
    11,596
 
7.000%, 6/15/2026
12,660     
     3,699
 
7.000%, 6/15/2026
4,028      
     3,755
 
7.000%, 12/15/2026
4,090      
     4,966
 
7.000%, 6/15/2027
5,422      
       926
 
7.000%, 10/15/2027
1,021      
     2,799
 
7.000%, 11/15/2027
3,059      
     3,170
 
7.000%, 2/15/2028
3,506      
     8,917
 
7.000%, 4/15/2028
9,904      
     2,085
 
7.000%, 6/15/2028
2,332      
    14,419
 
7.000%, 6/15/2028
16,112     
     7,490
 
7.000%, 7/15/2028
8,292      
    12,060
 
7.000%, 7/15/2028
13,394     
    40,427
 
7.000%, 8/15/2028
45,464     
     4,022
 
7.000%, 8/15/2028
4,472      
       801
 
7.000%, 9/15/2028
889        
3
Principal
Amount
or Shares
 
 
Value
          
1
MORTGAGE-BACKED SECURITIES—continued
 
 
 
Government National Mortgage Association—continued
 
$     3,252
 
7.000%, 9/15/2028
$3,630      
     3,604
 
7.000%, 10/15/2028
4,042      
    13,940
 
7.000%, 10/15/2028
15,530     
    44,902
 
7.000%, 11/15/2028
50,671     
     9,806
 
7.000%, 12/15/2028
10,957     
    12,071
 
7.000%, 12/15/2028
13,644     
    29,410
 
7.000%, 12/15/2028
32,376     
    13,239
 
7.000%, 12/15/2028
14,778     
     3,367
 
7.000%, 1/15/2029
3,796      
     2,335
 
7.000%, 1/15/2029
2,642      
     4,231
 
7.000%, 1/15/2029
4,709      
     2,037
 
7.000%, 1/15/2029
2,168      
     2,129
 
7.000%, 1/15/2029
2,394      
    10,661
 
7.000%, 1/15/2029
11,978     
     2,981
 
7.000%, 1/15/2029
3,266      
       926
 
7.000%, 1/15/2029
952        
     9,699
 
7.000%, 1/15/2029
10,963     
    11,920
 
7.000%, 1/15/2029
13,496     
    27,280
 
7.000%, 1/15/2029
30,862     
       931
 
7.000%, 2/15/2029
1,040      
     2,500
 
7.000%, 2/15/2029
2,825      
     5,845
 
7.000%, 2/15/2029
6,596      
     1,944
 
7.000%, 2/15/2029
2,189      
     8,938
 
7.000%, 2/15/2029
10,078     
       191
 
7.000%, 2/15/2029
214        
        51
 
7.000%, 2/15/2029
57         
     1,095
 
7.000%, 3/15/2029
1,223      
     6,926
 
7.000%, 3/15/2029
7,677      
     2,184
 
7.000%, 3/15/2029
2,456      
       540
 
7.000%, 3/15/2029
611        
       930
 
7.000%, 3/15/2029
1,053      
     1,473
 
7.000%, 3/15/2029
1,663      
       950
 
7.000%, 3/15/2029
1,073      
     1,437
 
7.000%, 3/15/2029
1,621      
    40,265
 
7.000%, 4/15/2029
45,476     
     2,209
 
7.000%, 4/15/2029
2,495      
     1,000
 
7.000%, 4/15/2029
1,128      
     4,360
 
7.000%, 4/15/2029
4,929      
     7,561
 
7.000%, 4/15/2029
8,398      
     4,649
 
7.000%, 4/15/2029
4,994      
       197
 
7.000%, 4/15/2029
223        
     2,500
 
7.000%, 5/15/2029
2,817      
       598
 
7.000%, 5/15/2029
674        
     1,289
 
7.000%, 5/15/2029
1,389      
     2,516
 
7.000%, 5/15/2029
2,840      
     5,327
 
7.000%, 6/15/2029
6,031      
     2,437
 
7.000%, 6/15/2029
2,768      
     3,236
 
7.000%, 6/15/2029
3,639      
       266
 
7.000%, 6/15/2029
302        
       631
 
7.000%, 6/15/2029
717        
4
Principal
Amount
or Shares
 
 
Value
          
1
MORTGAGE-BACKED SECURITIES—continued
 
 
 
Government National Mortgage Association—continued
 
$     7,849
 
7.000%, 6/15/2029
$8,872      
       698
 
7.000%, 6/15/2029
787        
     5,412
 
7.000%, 7/15/2029
6,102      
     1,549
 
7.000%, 7/15/2029
1,689      
     7,771
 
7.000%, 7/15/2029
8,812      
    45,890
 
7.000%, 7/15/2029
52,119     
     9,046
 
7.000%, 7/15/2029
10,282     
       946
 
7.000%, 7/15/2029
1,059      
     1,821
 
7.000%, 7/15/2029
2,072      
     5,028
 
7.000%, 7/15/2029
5,715      
     1,742
 
7.000%, 7/15/2029
1,947      
     6,150
 
7.000%, 7/15/2029
6,957      
       868
 
7.000%, 8/15/2029
985        
     1,743
 
7.000%, 8/15/2029
1,984      
     1,914
 
7.000%, 8/15/2029
2,159      
     1,334
 
7.000%, 8/15/2029
1,518      
     6,832
 
7.000%, 8/15/2029
7,703      
     1,826
 
7.000%, 9/15/2029
2,066      
    10,687
 
7.000%, 9/15/2029
12,029     
     5,348
 
7.000%, 9/15/2029
6,092      
     4,128
 
7.000%, 9/15/2029
4,691      
     6,325
 
7.000%, 9/15/2029
7,183      
    16,166
 
7.000%, 12/15/2029
18,258     
     3,117
 
7.000%, 12/15/2029
3,517      
     3,028
 
7.000%, 1/15/2030
3,456      
    17,665
 
7.000%, 1/15/2030
20,181     
    16,296
 
7.000%, 2/15/2030
18,100     
     3,927
 
7.000%, 2/15/2030
4,483      
     8,782
 
7.000%, 2/15/2030
10,040     
    23,528
 
7.000%, 2/15/2030
26,897     
    45,552
 
7.000%, 3/15/2030
51,735     
    18,681
 
7.000%, 3/15/2030
21,150     
     3,000
 
7.000%, 4/15/2030
3,432      
    14,918
 
7.000%, 6/15/2030
17,101     
     2,323
 
7.000%, 6/15/2030
2,655      
    22,067
 
7.000%, 8/15/2030
25,297     
     6,414
 
7.000%, 8/15/2030
7,256      
     7,014
 
7.000%, 9/15/2030
7,567      
    12,840
 
7.000%, 10/15/2030
14,678     
     3,076
 
7.000%, 10/15/2030
3,264      
     3,331
 
7.000%, 11/15/2030
3,831      
     8,340
 
7.000%, 2/15/2031
9,593      
    98,950
 
7.000%, 2/15/2031
113,590    
     3,637
 
7.000%, 3/15/2031
4,166      
    25,571
 
7.000%, 3/15/2031
29,374     
       908
 
7.000%, 7/15/2031
1,035      
       357
 
7.000%, 9/15/2031
405        
    19,686
 
7.000%, 10/15/2031
22,729     
     8,768
 
7.000%, 11/15/2031
10,123     
     7,713
 
7.000%, 1/15/2032
8,696      
5
Principal
Amount
or Shares
 
 
Value
          
1
MORTGAGE-BACKED SECURITIES—continued
 
 
 
Government National Mortgage Association—continued
 
$     7,699
 
7.000%, 4/15/2032
$8,808      
    11,490
 
7.000%, 5/15/2032
13,281     
       582
 
7.000%, 11/15/2032
642        
       535
 
7.000%, 1/15/2033
619        
   133,898
 
7.500%, 11/15/2027
149,763    
   114,167
 
7.500%, 11/15/2027
127,981    
       437
 
7.500%, 4/15/2029
494        
     3,901
 
7.500%, 7/15/2029
4,304      
       336
 
7.500%, 7/15/2029
382        
       963
 
7.500%, 8/15/2029
1,096      
       406
 
7.500%, 8/15/2029
463        
    25,185
 
7.500%, 8/15/2029
28,472     
    21,471
 
7.500%, 8/15/2029
24,549     
     8,317
 
7.500%, 8/15/2029
9,558      
    32,187
 
7.500%, 8/15/2029
37,017     
    15,997
 
7.500%, 8/20/2029
18,214     
     4,069
 
7.500%, 9/15/2029
4,640      
    28,068
 
7.500%, 9/15/2029
32,006     
     8,620
 
7.500%, 10/15/2029
9,631      
    15,951
 
7.500%, 10/15/2029
18,105     
     2,885
 
7.500%, 10/15/2029
3,321      
     4,653
 
7.500%, 12/15/2029
5,311      
     6,588
 
7.500%, 1/15/2030
7,533      
    10,059
 
7.500%, 3/20/2030
11,502     
    12,985
 
7.500%, 8/15/2030
14,833     
    11,203
 
7.500%, 10/15/2030
13,013     
    42,025
 
7.500%, 10/15/2030
45,736     
     8,750
 
7.500%, 10/15/2030
10,047     
     6,331
 
7.500%, 11/20/2030
7,273      
     6,777
 
7.500%, 1/15/2031
7,889      
     5,527
 
7.500%, 2/15/2031
6,424      
    17,069
 
7.500%, 4/20/2031
19,765     
    52,308
 
7.500%, 7/15/2031
60,109     
     1,437
 
7.500%, 9/15/2031
1,659      
    15,048
 
7.500%, 10/15/2031
17,564     
    11,054
 
7.500%, 11/15/2031
12,927     
     9,197
 
7.500%, 12/15/2031
10,095     
     7,820
 
7.500%, 3/15/2032
9,063      
     6,135
 
7.500%, 5/15/2032
7,170      
       557
 
8.000%, 11/15/2023
579        
    24,488
 
8.000%, 11/15/2027
27,121     
    17,619
 
8.000%, 8/15/2029
20,326     
    62,817
 
8.000%, 11/15/2029
72,585     
    26,683
 
8.000%, 12/15/2029
30,857     
     2,409
 
8.000%, 1/15/2030
2,779      
    12,342
 
8.000%, 1/15/2030
14,295     
       439
 
8.000%, 3/15/2030
447        
    11,055
 
8.000%, 4/15/2030
12,842     
       385
 
8.000%, 4/15/2030
447        
     5,856
 
8.000%, 4/15/2030
6,772      
6
Principal
Amount
or Shares
 
 
Value
          
1
MORTGAGE-BACKED SECURITIES—continued
 
 
 
Government National Mortgage Association—continued
 
$       650
 
8.000%, 4/15/2030
$744        
     5,080
 
8.000%, 4/15/2030
5,831      
     2,856
 
8.000%, 4/15/2030
3,305      
     1,853
 
8.000%, 5/15/2030
2,154      
     1,169
 
8.000%, 5/15/2030
1,345      
       226
 
8.000%, 5/15/2030
257        
     1,097
 
8.000%, 5/15/2030
1,270      
     2,896
 
8.000%, 5/15/2030
3,361      
     7,282
 
8.000%, 5/15/2030
8,359      
     4,209
 
8.000%, 6/15/2030
4,680      
       869
 
8.000%, 6/15/2030
1,009      
       880
 
8.000%, 6/15/2030
1,019      
     4,041
 
8.000%, 6/15/2030
4,626      
     8,002
 
8.000%, 6/15/2030
9,201      
    58,395
 
8.000%, 6/15/2030
67,528     
    28,661
 
8.000%, 6/15/2030
33,341     
     2,739
 
8.000%, 6/15/2030
2,922      
    40,523
 
8.000%, 7/15/2030
47,037     
     2,263
 
8.000%, 7/15/2030
2,619      
     3,712
 
8.000%, 7/15/2030
4,317      
    19,020
 
8.500%, 6/15/2030
21,973     
 
 
TOTAL
8,357,739
 
2
Uniform Mortgage-Backed Securities, TBA—13.0%
 
11,000,000
 
2.500%, 11/1/2051
11,298,200 
14,000,000
 
2.500%, 11/20/2051
14,392,412 
 
 
TOTAL
25,690,612
 
 
TOTAL MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $187,551,668)
188,265,258
 
 
GOVERNMENT AGENCY—1.5%
 
 
 
Federal Farm Credit System—1.5%
 
 3,000,000
 
0.700%, 1/27/2027
(IDENTIFIED COST $3,000,000)
2,898,372  
 
 
INVESTMENT COMPANY—19.0%
 
37,476,689
 
Federated Hermes Government Obligations Fund, Class Premier, 0.03%3
(IDENTIFIED COST $37,476,689)
37,476,689 
 
 
TOTAL INVESTMENT IN SECURITIES—116.1%
(IDENTIFIED COST $228,028,357)
228,640,319
 
 
OTHER ASSETS AND LIABILITIES - NET—(16.1)%4
(31,647,077)
 
 
TOTAL NET ASSETS—100%
$196,993,242
At October 31, 2021, the Fund had the following outstanding futures contracts:  
Description
Number of
Contracts
Notional
Value
Expiration
Date
Value and
Unrealized
Appreciation
(Depreciation)
Long Futures:
 
 
 
 
5United States Treasury Long Bond Long Futures
7
$1,125,906
December 2021
$20,984
5United States Treasury Ultra Bond Long Futures
2
$392,813
December 2021
$(3,333)
NET UNREALIZED APPRECIATION ON FUTURES CONTRACTS
$17,651
The average notional value of long and short futures contracts held by the Fund throughout the period was $229,541 and $14,901,014, respectively. This is based on the contracts held as of each month-end throughout the nine-month fiscal period.
7
Net Unrealized Appreciation on Futures Contracts is included in “Other Assets and Liabilities—Net.”
Affiliated fund holdings are investment companies which are managed by the Adviser or an affiliate of the Adviser. Transactions with affiliated fund holdings during the period ended October 31, 2021, were as follows:  
 
Federated
Hermes
Government
Obligations Fund,
Premier Shares
Value as of 1/31/2021
$8,455,721
Purchases at Cost
$111,801,414
Proceeds from Sales
$(82,780,446)
Change in Unrealized Appreciation/Depreciation
N/A
Net Realized Gain/(Loss)
N/A
Value as of 10/31/2021
$37,476,689
Shares Held as of 10/31/2021
37,476,689
Dividend Income
$7,203
 
1
Due to monthly principal payments, the average lives of the Federal Home Loan Mortgage Corporation, Federal National Mortgage Association and Government
National Mortgage Association securities approximates one to ten years.
2
All or a portion of these To Be Announced Securities (TBAs) are subject to dollar-roll transactions.
3
7-day net yield.
4
Assets, other than investments in securities, less liabilities. A significant portion of this balance is a result of dollar-roll transactions as of October 31, 2021.
5
Non-income-producing security.
Note: The categories of investments are shown as a percentage of total net assets at October 31, 2021.
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
■ Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Fund’s Board of Trustees (the “Trustees”).
■ 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 asked quotations.
■ Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.
■ For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.
If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Fund’s valuation policies and procedures, or if information furnished by a pricing service, in the opinion of the valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.
Fair Valuation Procedures
The Trustees have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Trustees have appointed a Valuation Committee comprised of officers of the Fund, Federated Investment Management Company (the “Adviser”), and certain of the Adviser’s affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
8
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of October 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:
 
 
 
 
Mortgage-Backed Securities
$—
$188,265,258
$—
$188,265,258
Government Agency
—
2,898,372
—
2,898,372
Investment Company
37,476,689
—
—
37,476,689
TOTAL SECURITIES
$37,476,689
$191,163,630
$—
$228,640,319
Other Financial Instruments:1
 
 
 
 
Assets
$20,984
$—
$—
$20,984
Liabilities
(3,333)
—
—
(3,333)
TOTAL OTHER FINANCIAL INSTRUMENTS
$17,651
$—
$—
$17,651
 
1
Other financial instruments are futures contracts.
9