N-CSR 1 lp1-310.htm ANNUAL REPORTS

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-05202
   
  BNY Mellon Investment Funds IV, Inc.  
  (Exact name of Registrant as specified in charter)  
     
 

 

c/o BNY Mellon Investment Adviser, Inc.

240 Greenwich Street

New York, New York 10286

 
  (Address of principal executive offices)        (Zip code)  
     
 

Deirdre Cunnane, Esq.

240 Greenwich Street

New York, New York 10286

 
  (Name and address of agent for service)  
 
Registrant's telephone number, including area code:   (212) 922-6400
   

Date of fiscal year end:

 

10/31  
Date of reporting period:

10/31/22

 

 

 

 
             

 

The following N-CSR relates only to the Registrant's series listed below and does not relate to any series of the Registrant with a different fiscal year end and, therefore, different N-CSR reporting requirements. A separate N-CSR will be filed for any series with a different fiscal year end, as appropriate.

 

BNY Mellon Bond Market Index Fund

BNY Mellon Institutional S&P 500 Stock Index Fund

BNY Mellon Tax Managed Growth Fund

 

 
 

FORM N-CSR

Item 1. Reports to Stockholders.

 

 

 

BNY Mellon Bond Market Index Fund

 

ANNUAL REPORT

October 31, 2022

 

 

 

Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.im.bnymellon.com and sign up for eCommunications. It’s simple and only takes a few minutes.

 

The views expressed in this report reflect those of the portfolio manager(s) only through the end of the period covered and do not necessarily represent the views of BNY Mellon Investment Adviser, Inc. or any other person in the BNY Mellon Investment Adviser, Inc. organization. Any such views are subject to change at any time based upon market or other conditions and BNY Mellon Investment Adviser, Inc. disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a fund in the BNY Mellon Family of Funds are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any fund in the BNY Mellon Family of Funds.

 

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

 

Contents

THE FUND

  

Discussion of Fund Performance

2

Fund Performance

4

Understanding Your Fund’s Expenses

6

Comparing Your Fund’s Expenses
With Those of Other Funds

6

Statement of Investments

7

Statement of Assets and Liabilities

53

Statement of Operations

54

Statement of Changes in Net Assets

55

Financial Highlights

56

Notes to Financial Statements

58

Report of Independent Registered
Public Accounting Firm

68

Important Tax Information

69

Board Members Information

70

Officers of the Fund

73

FOR MORE INFORMATION

 

Back Cover

 

DISCUSSION OF FUND PERFORMANCE (Unaudited)

For the period from November 1, 2021, through October 31, 2022, as provided by Nancy G. Rogers, CFA and Gregg Lee, CFA, Portfolio Managers

Market and Fund Performance Overview

For the 12-month period ended October 31, 2022, the BNY Mellon Bond Market Index Fund’s (the “fund”) Class I shares produced a total return of −15.94%, and its Investor shares produced a total return of −16.15%.1 In comparison, the Bloomberg U.S. Aggregate Bond Index (the “Index”) achieved a total return of −15.68% for the same period.2

Returns were negative across the board in the fixed-income market, but spread sectors, including corporate and securitized bonds fared the worst. The difference in returns between the fund and the Index was primarily the result of operating expenses that are not reflected in the Index’s results.

The Fund’s Investment Approach

The fund seeks to match the total return of the Index. To pursue its goal, the fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in bonds that are included in the Index (or other instruments with similar economic characteristics). To maintain liquidity, the fund may invest up to 20% of its assets in various short-term, fixed-income securities and money market instruments.

The fund’s investments are selected by a “sampling” process, which is a statistical process used to select bonds so that the fund has investment characteristics that closely approximate those of the Index. By using this sampling process, the fund typically will not invest in all of the securities in the Index.

Inflation Hampers the Market

Fixed-income markets posted a negative performance during the reporting period, driven primarily by worries about rising inflation. The Federal Reserve (the “Fed”) responded with a hawkish stance and a series of hikes in the federal funds rate.

Inflation initially heated up in response to pent-up demand resulting from the COVID-19 pandemic. Pricing pressures were exacerbated by extended lockdowns in China, which caused bottlenecks in supply chains. Finally, the invasion of Ukraine by Russia reduced the supply of oil and other commodities, further adding to inflation pressures.

In March 2022, the Fed began to hike interest rates, hiking the federal funds rate by 25 basis points (bps). This was followed by an increase of 50 bps in May, and hikes of 75 bps in June, July and September, bringing the federal funds target to 3.00% - 3.25%. While some investors began to anticipate that the Fed would pivot and slow the pace of rate increases, the Fed gave little indication that it was ready to make this move.

Treasury yields rose across the yield curve during the reporting period, but especially at the short end, where the Fed’s actions have the most effect. The yield on the two-year Treasury rose approximately 400 bps, while the yield on the 10-year Treasury increased by approximately 250 bps.

Corporate and Securitized Bonds Perform Worst

The Index lost 15.68%, the weakest performance in decades, with declines occurring across the board. The loss was driven largely by bonds in spread sectors, especially corporate bonds, which declined approximately 19%, and by securitized bonds, which fell about 15%.

On the other hand, Treasuries outperformed the Index, declining about 14%, as did government agency bonds, which fell 10%. In the securitized sector, asset-backed securities, which tend to be of shorter duration, slid only 6%.

2

 

Replicating the Composition of the Index

As an index fund, we attempt to match closely the returns of the Index by approximating its composition and credit quality. Although we do not actively manage the fund’s investments in response to the macroeconomic environment, we continue to monitor factors which affect the fund’s investments.

November 15, 2022

¹ Total return includes reinvestment of dividends and any capital gains paid. The fund’s return reflects the absorption of certain fund expenses by BNY Mellon Investment Adviser, Inc. pursuant to an agreement. Had these expenses not been absorbed, returns would have been lower. Past performance is no guarantee of future results. Share price, yield and investment return fluctuate such that upon redemption, fund shares may be worth more or less than their original cost.

² Source: Lipper Inc. — The Bloomberg U.S. Aggregate Bond Index is a broad-based, flagship benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market. The Index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and nonagency). Investors cannot invest directly in any index.

Bonds are subject generally to interest-rate, credit, liquidity and market risks, to varying degrees, all of which are more fully described in the fund’s prospectus. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes, and rate increases can cause price declines.

Indexing does not attempt to manage market volatility, use defensive strategies, or reduce the effects of any long-term periods of poor index performance. The correlation between fund and index performance may be affected by the fund’s expenses and use of sampling techniques, changes in securities markets, changes in the composition of the index, and the timing of purchases and redemptions of fund shares.

Recent market risks include pandemic risks related to COVID-19. The effects of COVID-19 have contributed to increased volatility in global markets and will likely affect certain countries, companies, industries and market sectors more dramatically than others. To the extent the fund may overweight its investments in certain countries, companies, industries or market sectors, such positions will increase the fund’s exposure to risk of loss from adverse developments affecting those countries, companies, industries or sectors.

3

 

FUND PERFORMANCE (Unaudited)


Comparison of change in value of a $10,000 investment in Investor shares and Class I shares of BNY Mellon Bond Market Index Fund with a hypothetical investment of $10,000 in the Bloomberg U.S. Aggregate Bond Index (the “Index”).

 Source: Lipper Inc.

Past performance is not predictive of future performance.

The above graph compares a hypothetical investment of $10,000 made in each of the Investor shares and Class I shares of BNY Mellon Bond Market Index Fund on 10/31/12 to a hypothetical investment of $10,000 made in the Index on that date. All dividends and capital gain distributions are reinvested.

The fund’s performance shown in the line graph above takes into account all applicable fees and expenses for Investor shares and Class I shares. The Index is a broad-based flagship benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market. The Index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and nonagency). Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

4

 

    

Average Annual Total Returns as of 10/31/2022

 

1 Year

5 Years

10 Years

Class I shares

-15.94%

-.70%

.53%

Investor shares

-16.15%

-.93%

.29%

Bloomberg U.S. Aggregate Bond Index

-15.68%

-.54%

.74%

The performance data quoted represents past performance, which is no guarantee of future results. Share price and investment return fluctuate and an investor’s shares may be worth more or less than original cost upon redemption. Current performance may be lower or higher than the performance quoted. Go to www.im.bnymellon.com for the fund’s most recent month-end returns.

The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

5

 

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in BNY Mellon Bond Market Index Fund from May 1, 2022 to October 31, 2022. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

     

Expenses and Value of a $1,000 Investment

 

Assume actual returns for the six months ended October 31, 2022

 

 

 

 

 

 

 

 

Class I

Investor Shares

 

Expenses paid per $1,000

$.73

$1.95

 

Ending value (after expenses)

$931.00

$929.80

 

COMPARING YOUR FUND’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (“SEC”) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

     

Expenses and Value of a $1,000 Investment

 

Assuming a hypothetical 5% annualized return for the six months ended October 31, 2022

 

 

 

 

 

 

 

 

Class I

Investor Shares

 

Expenses paid per $1,000

$.77

$2.04

 

Ending value (after expenses)

$1,024.45

$1,023.19

 

Expenses are equal to the fund’s annualized expense ratio of .15% for Class I and .40% for Investor Shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

6

 

STATEMENT OF INVESTMENTS

October 31, 2022

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2%

     

Aerospace & Defense - .3%

     

L3Harris Technologies Inc., Sr. Unscd. Notes

 

5.05

 

4/27/2045

 

200,000

 

170,861

 

Lockheed Martin Corp., Sr. Unscd. Notes

 

3.55

 

1/15/2026

 

117,000

 

112,594

 

Lockheed Martin Corp., Sr. Unscd. Notes

 

4.07

 

12/15/2042

 

250,000

 

206,030

 

Northrop Grumman Corp., Sr. Unscd. Notes

 

4.03

 

10/15/2047

 

160,000

 

126,163

 

Raytheon Technologies Corp., Sr. Unscd. Notes

 

3.13

 

5/4/2027

 

110,000

 

100,491

 

Raytheon Technologies Corp., Sr. Unscd. Notes

 

4.13

 

11/16/2028

 

210,000

 

195,658

 

Raytheon Technologies Corp., Sr. Unscd. Notes

 

4.63

 

11/16/2048

 

105,000

 

88,490

 

Raytheon Technologies Corp., Sr. Unscd. Notes

 

7.20

 

8/15/2027

 

150,000

 

162,763

 

The Boeing Company, Sr. Unscd. Notes

 

2.95

 

2/1/2030

 

125,000

 

100,267

 

The Boeing Company, Sr. Unscd. Notes

 

3.50

 

3/1/2039

 

200,000

 

131,637

 

The Boeing Company, Sr. Unscd. Notes

 

3.75

 

2/1/2050

 

125,000

 

80,215

 

The Boeing Company, Sr. Unscd. Notes

 

3.83

 

3/1/2059

 

100,000

 

58,968

 

The Boeing Company, Sr. Unscd. Notes

 

5.15

 

5/1/2030

 

250,000

 

231,236

 
 

1,765,373

 

Agriculture - .4%

     

Altria Group Inc., Gtd. Notes

 

2.35

 

5/6/2025

 

500,000

 

461,622

 

Altria Group Inc., Gtd. Notes

 

3.40

 

2/4/2041

 

80,000

 

49,061

 

Altria Group Inc., Gtd. Notes

 

4.80

 

2/14/2029

 

300,000

 

276,474

 

Archer-Daniels-Midland Co., Sr. Unscd. Notes

 

2.50

 

8/11/2026

 

350,000

 

320,311

 

BAT Capital Corp., Gtd. Notes

 

3.56

 

8/15/2027

 

310,000

 

270,129

 

BAT Capital Corp., Gtd. Notes

 

4.39

 

8/15/2037

 

180,000

 

130,673

 

BAT Capital Corp., Gtd. Notes

 

5.65

 

3/16/2052

 

200,000

 

151,630

 

BAT International Finance PLC, Gtd. Notes

 

1.67

 

3/25/2026

 

200,000

 

171,916

 

Philip Morris International Inc., Sr. Unscd. Notes

 

4.50

 

3/20/2042

 

300,000

 

219,738

 

Reynolds American Inc., Gtd. Notes

 

5.70

 

8/15/2035

 

240,000

 

203,093

 
 

2,254,647

 

7

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Airlines - .2%

     

American Airlines Pass Through Trust, Ser. 2016-1, Cl. AA

 

3.58

 

1/15/2028

 

389,337

 

343,069

 

JetBlue Pass Through Trust, Ser. 2019-1, Cl. AA

 

2.75

 

5/15/2032

 

267,079

 

212,838

 

Southwest Airlines Co., Sr. Unscd. Notes

 

5.13

 

6/15/2027

 

125,000

 

122,063

 

Southwest Airlines Co., Sr. Unscd. Notes

 

5.25

 

5/4/2025

 

200,000

 

199,023

 

United Airlines Pass Through Trust, Ser. 2013-1, Cl. A

 

4.30

 

8/15/2025

 

603,108

 

560,190

 
 

1,437,183

 

Asset-Backed Certificates - .0%

     

Verizon Master Trust, Ser. 2021-2, CI. A

 

0.99

 

4/20/2028

 

200,000

 

184,441

 

Asset-Backed Certificates/Auto Receivables - .2%

     

GM Financial Automobile Leasing Trust, Ser. 2022-2, CI. A3

 

3.42

 

6/20/2025

 

100,000

 

97,380

 

Honda Auto Receivables Owner Trust, Ser. 2021-1, CI. A4

 

0.42

 

1/21/2028

 

400,000

 

371,409

 

Hyundai Auto Receivables Trust, Ser. 2020-A, Cl. A4

 

1.72

 

6/15/2026

 

100,000

 

95,614

 

Santander Drive Auto Receivables Trust, Ser. 2021-1, Cl. D

 

1.13

 

11/16/2026

 

300,000

 

284,289

 

Toyota Auto Receivables Owner Trust, Ser. 2021-A, Cl. A4

 

0.39

 

6/15/2026

 

300,000

 

276,140

 

Toyota Auto Receivables Owner Trust, Ser. 2022-C, CI. A3

 

3.76

 

4/15/2027

 

250,000

 

242,008

 

World Omni Automobile Lease Securitization Trust, Ser. 2022-A, CI. A3

 

3.21

 

2/18/2025

 

100,000

 

97,636

 
 

1,464,476

 

Asset-Backed Certificates/Credit Cards - .1%

     

BA Credit Card Trust, Ser. 2022-A1, Cl. A1

 

3.53

 

11/15/2027

 

200,000

 

192,949

 

Barclays Dryrock Issuance Trust, Ser. 2022-1, CI. A

 

3.07

 

2/15/2028

 

200,000

 

190,775

 

Capital One Multi-Asset Execution Trust, Ser. 2021-A2, CI. A2

 

1.39

 

7/15/2030

 

300,000

 

245,451

 

Synchrony Card Funding LLC, Ser. 2022-A1, Cl. A

 

3.37

 

4/15/2028

 

250,000

 

240,912

 
 

870,087

 

Automobiles & Components - .4%

     

American Honda Finance Corp., Sr. Unscd. Notes

 

1.00

 

9/10/2025

 

200,000

a 

178,387

 

BorgWarner Inc., Sr. Unscd. Notes

 

3.38

 

3/15/2025

 

250,000

a 

238,877

 

Cummins Inc., Sr. Unscd. Notes

 

1.50

 

9/1/2030

 

100,000

 

76,250

 

8

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Automobiles & Components - .4% (continued)

     

Cummins Inc., Sr. Unscd. Notes

 

2.60

 

9/1/2050

 

100,000

 

59,400

 

General Motors Co., Sr. Unscd. Notes

 

4.20

 

10/1/2027

 

180,000

a 

164,436

 

General Motors Co., Sr. Unscd. Notes

 

5.20

 

4/1/2045

 

340,000

 

262,981

 

General Motors Financial Co., Sr. Unscd. Notes

 

1.25

 

1/8/2026

 

200,000

 

170,750

 

General Motors Financial Co., Sr. Unscd. Notes

 

2.35

 

1/8/2031

 

200,000

 

146,628

 

General Motors Financial Co., Sr. Unscd. Notes

 

2.40

 

4/10/2028

 

300,000

 

243,208

 

General Motors Financial Co., Sr. Unscd. Notes

 

2.70

 

6/10/2031

 

30,000

 

22,356

 

General Motors Financial Co., Sr. Unscd. Notes

 

2.75

 

6/20/2025

 

200,000

 

184,141

 

Magna International Inc., Sr. Unscd. Notes

 

2.45

 

6/15/2030

 

200,000

 

160,534

 

Mercedes-Benz Finance North America LLC, Gtd. Notes

 

8.50

 

1/18/2031

 

200,000

 

233,418

 

Toyota Motor Corp., Sr. Unscd. Bonds

 

3.67

 

7/20/2028

 

200,000

 

185,286

 

Toyota Motor Credit Corp., Sr. Unscd. Notes

 

1.65

 

1/10/2031

 

300,000

 

228,444

 
 

2,555,096

 

Banks - 5.6%

     

Banco Bilbao Vizcaya Argentaria SA, Sr. Unscd. Bonds

 

5.86

 

9/14/2026

 

200,000

 

193,333

 

Banco Bilbao Vizcaya Argentaria SA, Sr. Unscd. Notes

 

6.14

 

9/14/2028

 

200,000

 

190,376

 

Banco Santander SA, Sr. Unscd. Notes

 

3.80

 

2/23/2028

 

400,000

 

340,612

 

Bank of America Corp., Sr. Unscd. Notes

 

1.20

 

10/24/2026

 

250,000

 

217,122

 

Bank of America Corp., Sr. Unscd. Notes

 

1.90

 

7/23/2031

 

200,000

 

148,554

 

Bank of America Corp., Sr. Unscd. Notes

 

1.92

 

10/24/2031

 

250,000

 

183,697

 

Bank of America Corp., Sr. Unscd. Notes

 

2.30

 

7/21/2032

 

260,000

 

192,835

 

Bank of America Corp., Sr. Unscd. Notes

 

2.46

 

10/22/2025

 

200,000

 

186,713

 

Bank of America Corp., Sr. Unscd. Notes

 

2.50

 

2/13/2031

 

470,000

 

369,744

 

Bank of America Corp., Sr. Unscd. Notes

 

2.57

 

10/20/2032

 

125,000

 

94,453

 

Bank of America Corp., Sr. Unscd. Notes

 

2.59

 

4/29/2031

 

250,000

 

197,648

 

9

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Banks - 5.6% (continued)

     

Bank of America Corp., Sr. Unscd. Notes

 

2.68

 

6/19/2041

 

145,000

 

91,978

 

Bank of America Corp., Sr. Unscd. Notes

 

2.83

 

10/24/2051

 

250,000

 

146,038

 

Bank of America Corp., Sr. Unscd. Notes

 

2.97

 

7/21/2052

 

85,000

 

50,626

 

Bank of America Corp., Sr. Unscd. Notes

 

2.97

 

2/4/2033

 

120,000

 

93,153

 

Bank of America Corp., Sr. Unscd. Notes

 

3.19

 

7/23/2030

 

130,000

 

108,885

 

Bank of America Corp., Sr. Unscd. Notes

 

3.97

 

3/5/2029

 

150,000

 

135,032

 

Bank of America Corp., Sr. Unscd. Notes

 

4.27

 

7/23/2029

 

180,000

 

163,533

 

Bank of America Corp., Sr. Unscd. Notes

 

5.00

 

1/21/2044

 

500,000

 

427,971

 

Bank of America Corp., Sr. Unscd. Notes, Ser. N

 

3.48

 

3/13/2052

 

50,000

 

33,187

 

Bank of America Corp., Sub. Notes

 

3.85

 

3/8/2037

 

200,000

 

160,481

 

Bank of America Corp., Sub. Notes

 

4.00

 

1/22/2025

 

250,000

 

241,068

 

Bank of America Corp., Sub. Notes, Ser. L

 

4.18

 

11/25/2027

 

250,000

 

229,206

 

Bank of Montreal, Sr. Unscd. Notes

 

0.95

 

1/22/2027

 

600,000

 

515,749

 

BankUnited Inc., Sub. Notes

 

5.13

 

6/11/2030

 

200,000

 

180,194

 

Barclays PLC, Sr. Unscd. Notes

 

4.34

 

1/10/2028

 

200,000

 

175,419

 

Barclays PLC, Sr. Unscd. Notes

 

4.38

 

1/12/2026

 

200,000

 

185,763

 

Barclays PLC, Sr. Unscd. Notes

 

5.30

 

8/9/2026

 

200,000

 

190,512

 

BPCE SA, Gtd. Notes

 

4.00

 

4/15/2024

 

200,000

 

194,684

 

Citigroup Inc., Sr. Unscd. Notes

 

3.06

 

1/25/2033

 

95,000

 

74,125

 

Citigroup Inc., Sr. Unscd. Notes

 

3.11

 

4/8/2026

 

750,000

 

700,480

 

Citigroup Inc., Sr. Unscd. Notes

 

3.67

 

7/24/2028

 

500,000

 

448,871

 

Citigroup Inc., Sr. Unscd. Notes

 

3.79

 

3/17/2033

 

200,000

 

165,920

 

Citigroup Inc., Sr. Unscd. Notes

 

3.88

 

1/24/2039

 

60,000

 

46,208

 

Citigroup Inc., Sr. Unscd. Notes

 

4.08

 

4/23/2029

 

100,000

 

90,152

 

Citigroup Inc., Sr. Unscd. Notes

 

4.28

 

4/24/2048

 

200,000

 

153,275

 

Citigroup Inc., Sr. Unscd. Notes

 

4.65

 

7/23/2048

 

150,000

 

120,716

 

Citigroup Inc., Sr. Unscd. Notes

 

4.91

 

5/24/2033

 

70,000

 

63,687

 

Citigroup Inc., Sr. Unscd. Notes

 

6.63

 

1/15/2028

 

100,000

 

103,824

 

Citigroup Inc., Sub. Notes

 

5.50

 

9/13/2025

 

500,000

 

495,952

 

Citigroup Inc., Sub. Notes

 

6.68

 

9/13/2043

 

250,000

 

248,989

 

Comerica Bank, Sub. Notes

 

5.33

 

8/25/2033

 

200,000

 

182,912

 

Cooperatieve Rabobank, Sr. Unscd. Notes

 

0.38

 

1/12/2024

 

300,000

 

283,432

 

Credit Suisse AG/New York, Sr. Unscd. Notes

 

2.95

 

4/9/2025

 

250,000

 

223,887

 

10

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Banks - 5.6% (continued)

     

Credit Suisse Group AG, Sr. Unscd. Notes

 

3.75

 

3/26/2025

 

500,000

 

448,278

 

Deutsche Bank AG/New York, Sr. Unscd. Notes

 

2.13

 

11/24/2026

 

200,000

 

168,282

 

Deutsche Bank AG/New York, Sr. Unscd. Notes

 

3.96

 

11/26/2025

 

400,000

 

369,413

 

Deutsche Bank AG/New York, Sr. Unscd. Notes

 

6.12

 

7/14/2026

 

150,000

 

143,055

 

Discover Bank, Sr. Unscd. Notes

 

4.25

 

3/13/2026

 

400,000

 

373,257

 

Fifth Third Bancorp, Sr. Unscd. Notes

 

2.55

 

5/5/2027

 

200,000

 

174,813

 

HSBC Holdings PLC, Sr. Unscd. Notes

 

1.59

 

5/24/2027

 

200,000

 

164,471

 

HSBC Holdings PLC, Sr. Unscd. Notes

 

2.63

 

11/7/2025

 

400,000

 

365,741

 

HSBC Holdings PLC, Sr. Unscd. Notes

 

3.90

 

5/25/2026

 

295,000

 

269,595

 

HSBC Holdings PLC, Sr. Unscd. Notes

 

3.97

 

5/22/2030

 

300,000

 

247,565

 

HSBC Holdings PLC, Sr. Unscd. Notes

 

4.95

 

3/31/2030

 

400,000

 

358,543

 

HSBC Holdings PLC, Sr. Unscd. Notes

 

5.40

 

8/11/2033

 

300,000

 

260,521

 

ING Groep NV, Sr. Unscd. Notes

 

3.55

 

4/9/2024

 

300,000

 

291,368

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

0.56

 

2/16/2025

 

400,000

 

373,021

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

1.05

 

11/19/2026

 

150,000

 

129,313

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

1.56

 

12/10/2025

 

300,000

 

273,728

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

1.58

 

4/22/2027

 

300,000

 

258,196

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

1.76

 

11/19/2031

 

75,000

 

54,656

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

2.08

 

4/22/2026

 

250,000

 

227,713

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

2.30

 

10/15/2025

 

230,000

 

214,624

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

2.52

 

4/22/2031

 

390,000

 

307,971

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

2.53

 

11/19/2041

 

80,000

 

49,488

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

2.58

 

4/22/2032

 

300,000

 

231,006

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

2.74

 

10/15/2030

 

220,000

 

177,708

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

2.96

 

1/25/2033

 

110,000

 

86,039

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

3.30

 

4/1/2026

 

500,000

 

466,943

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

3.51

 

1/23/2029

 

135,000

 

119,279

 

11

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Banks - 5.6% (continued)

     

JPMorgan Chase & Co., Sr. Unscd. Notes

 

3.90

 

1/23/2049

 

105,000

 

76,672

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

4.01

 

4/23/2029

 

200,000

 

180,451

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

4.20

 

7/23/2029

 

150,000

 

135,868

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

4.26

 

2/22/2048

 

400,000

 

310,785

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

4.49

 

3/24/2031

 

300,000

 

271,359

 

JPMorgan Chase & Co., Sr. Unscd. Notes

 

4.85

 

7/25/2028

 

200,000

 

190,278

 

KeyBank NA, Sub. Notes

 

6.95

 

2/1/2028

 

100,000

 

102,419

 

KfW, Gov't Gtd. Notes

 

0.63

 

1/22/2026

 

250,000

 

221,068

 

KfW, Gov't Gtd. Notes

 

2.00

 

5/2/2025

 

1,100,000

 

1,034,283

 

KfW, Govt. Gtd. Bonds

 

0.38

 

7/18/2025

 

245,000

 

219,096

 

Landwirtschaftliche Rentenbank, Gov't Gtd. Notes

 

2.38

 

6/10/2025

 

250,000

 

236,531

 

Landwirtschaftliche Rentenbank, Gov't Gtd. Notes

 

3.13

 

11/14/2023

 

200,000

a 

196,960

 

Lloyds Banking Group PLC, Sr. Unscd. Notes

 

4.55

 

8/16/2028

 

500,000

 

446,595

 

Lloyds Banking Group PLC, Sr. Unscd. Notes

 

4.98

 

8/11/2033

 

300,000

 

257,099

 

Lloyds Banking Group PLC, Sub. Notes

 

4.58

 

12/10/2025

 

420,000

 

385,251

 

M&T Bank Corp., Sr. Unscd. Notes

 

4.55

 

8/16/2028

 

200,000

 

188,724

 

Mitsubishi UFJ Financial Group Inc., Sr. Unscd. Notes

 

1.41

 

7/17/2025

 

200,000

 

178,645

 

Mitsubishi UFJ Financial Group Inc., Sr. Unscd. Notes

 

2.05

 

7/17/2030

 

200,000

 

149,374

 

Mitsubishi UFJ Financial Group Inc., Sr. Unscd. Notes

 

4.29

 

7/26/2038

 

200,000

 

161,653

 

Mitsubishi UFJ Financial Group Inc., Sr. Unscd. Notes

 

5.35

 

9/13/2028

 

300,000

 

289,448

 

Mizuho Financial Group Inc., Sr. Unscd. Notes

 

2.20

 

7/10/2031

 

200,000

 

147,328

 

Morgan Stanley, Sr. Unscd. Notes

 

1.51

 

7/20/2027

 

140,000

 

118,795

 

Morgan Stanley, Sr. Unscd. Notes

 

1.59

 

5/4/2027

 

300,000

 

256,907

 

Morgan Stanley, Sr. Unscd. Notes

 

1.79

 

2/13/2032

 

75,000

 

54,167

 

Morgan Stanley, Sr. Unscd. Notes

 

2.24

 

7/21/2032

 

155,000

 

114,442

 

Morgan Stanley, Sr. Unscd. Notes

 

2.51

 

10/20/2032

 

95,000

 

71,619

 

Morgan Stanley, Sr. Unscd. Notes

 

2.70

 

1/22/2031

 

175,000

 

140,317

 

Morgan Stanley, Sr. Unscd. Notes

 

2.94

 

1/21/2033

 

85,000

 

66,315

 

Morgan Stanley, Sr. Unscd. Notes

 

3.22

 

4/22/2042

 

300,000

 

204,484

 

12

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Banks - 5.6% (continued)

     

Morgan Stanley, Sr. Unscd. Notes

 

3.77

 

1/24/2029

 

180,000

 

160,805

 

Morgan Stanley, Sr. Unscd. Notes

 

4.00

 

7/23/2025

 

200,000

 

192,337

 

Morgan Stanley, Sr. Unscd. Notes

 

4.38

 

1/22/2047

 

250,000

 

194,783

 

Morgan Stanley, Sr. Unscd. Notes

 

6.34

 

10/18/2033

 

100,000

 

101,528

 

Morgan Stanley, Sr. Unscd. Notes

 

7.25

 

4/1/2032

 

300,000

 

322,661

 

Morgan Stanley, Sub. Notes

 

3.95

 

4/23/2027

 

250,000

 

230,860

 

National Australia Bank Ltd./New York, Sr. Unscd. Notes

 

2.50

 

7/12/2026

 

250,000

 

227,399

 

Natwest Group PLC, Sr. Unscd. Notes

 

4.80

 

4/5/2026

 

500,000

 

471,590

 

Northern Trust Corp., Sub. Notes

 

3.95

 

10/30/2025

 

346,000

 

336,166

 

Royal Bank of Canada, Sr. Unscd. Notes

 

0.43

 

1/19/2024

 

300,000

 

283,038

 

Royal Bank of Canada, Sr. Unscd. Notes

 

1.15

 

6/10/2025

 

200,000

 

179,732

 

Santander UK Group Holdings PLC, Sr. Unscd. Notes

 

1.09

 

3/15/2025

 

300,000

 

275,240

 

State Street Corp., Sr. Unscd. Notes

 

3.15

 

3/30/2031

 

300,000

 

253,702

 

State Street Corp., Sub. Notes

 

3.03

 

11/1/2034

 

225,000

 

182,982

 

Sumitomo Mitsui Financial Group Inc., Sr. Unscd. Notes

 

0.51

 

1/12/2024

 

300,000

 

282,762

 

Sumitomo Mitsui Financial Group Inc., Sr. Unscd. Notes

 

0.95

 

1/12/2026

 

300,000

 

258,025

 

Sumitomo Mitsui Financial Group Inc., Sr. Unscd. Notes

 

3.45

 

1/11/2027

 

160,000

 

146,018

 

Sumitomo Mitsui Financial Group Inc., Sr. Unscd. Notes

 

3.78

 

3/9/2026

 

500,000

 

471,582

 

SVB Financial Group, Sr. Unscd. Notes

 

3.13

 

6/5/2030

 

200,000

 

156,140

 

The Bank of Nova Scotia, Sr. Unscd. Notes

 

1.30

 

9/15/2026

 

300,000

 

255,721

 

The Bank of Nova Scotia, Sr. Unscd. Notes

 

1.30

 

6/11/2025

 

200,000

a 

179,641

 

The Bank of Nova Scotia, Sr. Unscd. Notes

 

3.40

 

2/11/2024

 

200,000

 

195,729

 

The Bank of Nova Scotia, Sub. Notes

 

4.50

 

12/16/2025

 

250,000

 

240,133

 

The Goldman Sachs Group Inc., Sr. Unscd. Bonds

 

4.22

 

5/1/2029

 

200,000

 

181,114

 

The Goldman Sachs Group Inc., Sr. Unscd. Notes

 

1.43

 

3/9/2027

 

150,000

 

128,437

 

The Goldman Sachs Group Inc., Sr. Unscd. Notes

 

1.54

 

9/10/2027

 

140,000

 

117,578

 

The Goldman Sachs Group Inc., Sr. Unscd. Notes

 

1.95

 

10/21/2027

 

130,000

 

110,538

 

The Goldman Sachs Group Inc., Sr. Unscd. Notes

 

2.38

 

7/21/2032

 

170,000

 

126,711

 

13

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Banks - 5.6% (continued)

     

The Goldman Sachs Group Inc., Sr. Unscd. Notes

 

2.62

 

4/22/2032

 

300,000

 

229,218

 

The Goldman Sachs Group Inc., Sr. Unscd. Notes

 

2.64

 

2/24/2028

 

100,000

 

86,504

 

The Goldman Sachs Group Inc., Sr. Unscd. Notes

 

2.65

 

10/21/2032

 

120,000

 

90,995

 

The Goldman Sachs Group Inc., Sr. Unscd. Notes

 

2.91

 

7/21/2042

 

65,000

 

40,990

 

The Goldman Sachs Group Inc., Sr. Unscd. Notes

 

3.10

 

2/24/2033

 

130,000

 

101,948

 

The Goldman Sachs Group Inc., Sr. Unscd. Notes

 

3.21

 

4/22/2042

 

300,000

 

200,189

 

The Goldman Sachs Group Inc., Sr. Unscd. Notes

 

3.44

 

2/24/2043

 

65,000

 

44,365

 

The Goldman Sachs Group Inc., Sr. Unscd. Notes

 

3.63

 

2/20/2024

 

500,000

 

488,994

 

The Goldman Sachs Group Inc., Sr. Unscd. Notes

 

3.81

 

4/23/2029

 

150,000

 

133,216

 

The Goldman Sachs Group Inc., Sr. Unscd. Notes

 

3.85

 

1/26/2027

 

730,000

 

677,204

 

The Goldman Sachs Group Inc., Sub. Notes

 

4.25

 

10/21/2025

 

130,000

 

124,492

 

The Goldman Sachs Group Inc., Sub. Notes

 

6.75

 

10/1/2037

 

250,000

 

247,650

 

The PNC Financial Services Group Inc., Sr. Unscd. Notes

 

2.20

 

11/1/2024

 

250,000

 

235,833

 

The PNC Financial Services Group Inc., Sr. Unscd. Notes

 

3.45

 

4/23/2029

 

200,000

 

175,597

 

The Toronto-Dominion Bank, Sr. Unscd. Notes

 

0.75

 

1/6/2026

 

300,000

 

259,025

 

The Toronto-Dominion Bank, Sr. Unscd. Notes

 

1.15

 

6/12/2025

 

200,000

 

179,263

 

Truist Financial Corp., Sr. Unscd. Notes

 

1.20

 

8/5/2025

 

200,000

 

178,276

 

Truist Financial Corp., Sr. Unscd. Notes

 

1.95

 

6/5/2030

 

200,000

 

153,940

 

U.S. Bancorp, Sr. Unscd. Notes

 

1.38

 

7/22/2030

 

200,000

 

147,712

 

Wells Fargo & Co., Sr. Unscd. Notes

 

2.16

 

2/11/2026

 

145,000

 

133,257

 

Wells Fargo & Co., Sr. Unscd. Notes

 

2.19

 

4/30/2026

 

400,000

 

364,216

 

Wells Fargo & Co., Sr. Unscd. Notes

 

2.57

 

2/11/2031

 

545,000

 

434,733

 

Wells Fargo & Co., Sr. Unscd. Notes

 

3.55

 

9/29/2025

 

200,000

 

189,529

 

Wells Fargo & Co., Sr. Unscd. Notes

 

4.15

 

1/24/2029

 

135,000

 

122,966

 

Wells Fargo & Co., Sr. Unscd. Notes

 

4.54

 

8/15/2026

 

150,000

 

144,387

 

Wells Fargo & Co., Sub. Notes

 

4.10

 

6/3/2026

 

500,000

 

473,280

 

Wells Fargo & Co., Sub. Notes

 

4.30

 

7/22/2027

 

500,000

 

468,036

 

Wells Fargo & Co., Sub. Notes

 

4.65

 

11/4/2044

 

500,000

 

389,067

 

14

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Banks - 5.6% (continued)

     

Westpac Banking Corp., Sr. Unscd. Notes

 

2.85

 

5/13/2026

 

200,000

 

185,162

 

Westpac Banking Corp., Sub. Notes

 

2.67

 

11/15/2035

 

200,000

 

141,881

 

Westpac Banking Corp., Sub. Notes

 

2.96

 

11/16/2040

 

200,000

 

121,161

 

Westpac Banking Corp., Sub. Notes

 

5.41

 

8/10/2033

 

200,000

 

174,198

 
 

35,452,752

 

Beverage Products - .4%

     

Anheuser-Busch InBev Worldwide Inc., Gtd. Notes

 

3.50

 

6/1/2030

 

100,000

 

89,483

 

Anheuser-Busch InBev Worldwide Inc., Gtd. Notes

 

3.65

 

2/1/2026

 

315,000

 

301,923

 

Anheuser-Busch InBev Worldwide Inc., Gtd. Notes

 

4.60

 

4/15/2048

 

250,000

 

206,556

 

Anheuser-Busch InBev Worldwide Inc., Gtd. Notes

 

4.70

 

2/1/2036

 

290,000

 

262,508

 

Anheuser-Busch InBev Worldwide Inc., Gtd. Notes

 

5.45

 

1/23/2039

 

120,000

 

112,934

 

Anheuser-Busch InBev Worldwide Inc., Gtd. Notes

 

5.80

 

1/23/2059

 

300,000

 

286,114

 

Constellation Brands Inc., Sr. Unscd. Notes

 

2.88

 

5/1/2030

 

200,000

 

165,571

 

Keurig Dr Pepper Inc., Gtd. Notes

 

4.50

 

4/15/2052

 

100,000

 

78,828

 

Molson Coors Beverage Co., Gtd. Notes

 

4.20

 

7/15/2046

 

150,000

 

110,925

 

PepsiCo Inc., Sr. Unscd. Notes

 

2.63

 

7/29/2029

 

200,000

 

173,278

 

PepsiCo Inc., Sr. Unscd. Notes

 

2.75

 

10/21/2051

 

40,000

a 

26,211

 

PepsiCo Inc., Sr. Unscd. Notes

 

2.88

 

10/15/2049

 

150,000

 

101,900

 

PepsiCo Inc., Sr. Unscd. Notes

 

3.50

 

7/17/2025

 

250,000

 

241,327

 

The Coca-Cola Company, Sr. Unscd. Notes

 

2.88

 

5/5/2041

 

150,000

 

107,889

 

The Coca-Cola Company, Sr. Unscd. Notes

 

3.00

 

3/5/2051

 

200,000

 

136,568

 
 

2,402,015

 

Building Materials - .1%

     

Carrier Global Corp., Sr. Unscd. Notes

 

2.49

 

2/15/2027

 

34,000

 

29,955

 

Carrier Global Corp., Sr. Unscd. Notes

 

3.58

 

4/5/2050

 

245,000

 

164,737

 

Johnson Controls International PLC, Sr. Unscd. Notes

 

4.90

 

12/1/2032

 

200,000

 

187,816

 

Johnson Controls International PLC, Sr. Unscd. Notes

 

5.13

 

9/14/2045

 

10,000

 

8,434

 

Owens Corning, Sr. Unscd. Notes

 

7.00

 

12/1/2036

 

69,000

 

69,870

 
 

460,812

 

15

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Chemicals - .3%

     

DuPont de Nemours Inc., Sr. Unscd. Notes

 

4.21

 

11/15/2023

 

100,000

 

98,927

 

DuPont de Nemours Inc., Sr. Unscd. Notes

 

4.49

 

11/15/2025

 

100,000

 

98,029

 

DuPont de Nemours Inc., Sr. Unscd. Notes

 

4.73

 

11/15/2028

 

100,000

 

95,716

 

DuPont de Nemours Inc., Sr. Unscd. Notes

 

5.42

 

11/15/2048

 

125,000

 

109,889

 

Ecolab Inc., Sr. Unscd. Notes

 

1.30

 

1/30/2031

 

300,000

 

224,046

 

Ecolab Inc., Sr. Unscd. Notes

 

2.13

 

8/15/2050

 

175,000

 

93,788

 

Ecolab Inc., Sr. Unscd. Notes

 

2.75

 

8/18/2055

 

50,000

 

28,887

 

NewMarket Corp., Sr. Unscd. Notes

 

2.70

 

3/18/2031

 

200,000

 

152,009

 

Nutrien Ltd., Sr. Unscd. Notes

 

5.25

 

1/15/2045

 

191,000

 

164,541

 

The Mosaic Company, Sr. Unscd. Notes

 

4.25

 

11/15/2023

 

300,000

 

296,558

 

The Sherwin-Williams Company, Sr. Unscd. Notes

 

4.05

 

8/8/2024

 

300,000

 

294,454

 

The Sherwin-Williams Company, Sr. Unscd. Notes

 

4.25

 

8/8/2025

 

300,000

 

292,043

 

The Sherwin-Williams Company, Sr. Unscd. Notes

 

4.50

 

6/1/2047

 

100,000

 

79,306

 

Westlake Corp., Sr. Unscd. Notes

 

3.38

 

8/15/2061

 

200,000

 

110,287

 
 

2,138,480

 

Commercial & Professional Services - .3%

     

Duke University, Unscd. Bonds, Ser. 2020

 

2.76

 

10/1/2050

 

100,000

 

63,433

 

Equifax Inc., Sr. Unscd. Notes

 

5.10

 

12/15/2027

 

200,000

 

192,955

 

Global Payments Inc., Sr. Unscd. Notes

 

4.80

 

4/1/2026

 

500,000

 

480,515

 

Moody's Corp., Sr. Unscd. Notes

 

2.00

 

8/19/2031

 

200,000

 

151,374

 

Moody's Corp., Sr. Unscd. Notes

 

2.55

 

8/18/2060

 

250,000

 

128,489

 

PayPal Holdings Inc., Sr. Unscd. Notes

 

1.65

 

6/1/2025

 

400,000

 

367,230

 

PayPal Holdings Inc., Sr. Unscd. Notes

 

2.85

 

10/1/2029

 

95,000

 

80,863

 

President & Fellows of Harvard College, Unscd. Bonds

 

3.15

 

7/15/2046

 

250,000

 

181,185

 

The Leland Stanford Junior University, Unscd. Bonds

 

3.65

 

5/1/2048

 

105,000

 

81,607

 

The Washington University, Sr. Unscd. Bonds, Ser. 2022

 

3.52

 

4/15/2054

 

100,000

 

72,018

 

University of Southern California, Sr. Unscd. Notes

 

5.25

 

10/1/2111

 

40,000

 

35,277

 

William Marsh Rice University, Unscd. Bonds

 

3.57

 

5/15/2045

 

250,000

 

196,695

 
 

2,031,641

 

16

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Commercial Mortgage Pass-Through Certificates - 1.0%

     

Bank, Ser. 2019-BN21, Cl. A5

 

2.85

 

10/17/2052

 

400,000

 

335,208

 

BBCMS Mortgage Trust, Ser. 2020-C7, Cl. AS

 

2.44

 

4/15/2053

 

200,000

 

153,630

 

Benchmark Mortgage Trust, Ser. 2019-B10, Cl. A4

 

3.72

 

3/15/2062

 

300,000

 

267,924

 

Benchmark Mortgage Trust, Ser. 2020-IG1, Cl. A3

 

2.69

 

9/15/2043

 

400,000

 

325,451

 

Benchmark Mortgage Trust, Ser. 2020-IG1, Cl. AS

 

2.91

 

9/15/2043

 

500,000

 

396,055

 

CFCRE Commercial Mortgage Trust, Ser. 2017-C8, Cl. A4

 

3.57

 

6/15/2050

 

250,000

 

226,571

 

Commercial Mortgage Trust, Ser. 2014-CR16, Cl. A4

 

4.05

 

4/10/2047

 

200,000

 

194,132

 

Commercial Mortgage Trust, Ser. 2016-CR28, Cl. A4

 

3.76

 

2/10/2049

 

535,000

 

502,168

 

GS Mortgage Securities Trust, Ser. 2014-GC18, Cl. A3

 

3.80

 

1/10/2047

 

295,585

 

289,867

 

GS Mortgage Securities Trust, Ser. 2019-GC42, Cl. A4

 

3.00

 

9/1/2052

 

250,000

 

212,426

 

GS Mortgage Securities Trust, Ser. 2020-GC45, Cl. AS

 

3.17

 

2/13/2053

 

200,000

 

161,819

 

JPMBB Commercial Mortgage Securities Trust, Ser. 2014-C24, Cl. A5

 

3.64

 

11/15/2047

 

225,000

 

214,901

 

JPMBB Commercial Mortgage Securities Trust, Ser. 2015-C33, Cl. A4

 

3.77

 

12/15/2048

 

300,000

 

281,719

 

Morgan Stanley Bank of America Merrill Lynch Trust, Ser. 2015-C20, Cl. A4

 

3.25

 

2/15/2048

 

725,000

 

685,102

 

SG Commercial Mortgage Securities Trust, Ser. 2016-C5, Cl. A4

 

3.06

 

10/10/2048

 

600,000

 

542,875

 

UBS Commercial Mortgage Trust, Ser. 2018-C12, Cl. A5

 

4.30

 

8/15/2051

 

500,000

 

463,576

 

Wells Fargo Commercial Mortgage Trust, Ser. 2018-C44, Cl. A5

 

4.21

 

5/15/2051

 

900,000

 

833,236

 

Wells Fargo Commercial Mortgage Trust, Ser. 2019-C50, Cl. ASB

 

3.64

 

5/15/2052

 

200,000

 

185,145

 
 

6,271,805

 

Consumer Discretionary - .1%

     

Lennar Corp., Gtd. Notes

 

4.88

 

12/15/2023

 

100,000

 

99,073

 

WarnerMedia Holdings Inc., Gtd. Notes

 

4.28

 

3/15/2032

 

100,000

b 

80,882

 

WarnerMedia Holdings Inc., Gtd. Notes

 

5.39

 

3/15/2062

 

200,000

b 

139,873

 
 

319,828

 

17

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Consumer Durables & Apparel - .1%

     

NIKE Inc., Sr. Unscd. Notes

 

3.38

 

3/27/2050

 

300,000

a 

219,278

 

Ralph Lauren Corp., Sr. Unscd. Notes

 

2.95

 

6/15/2030

 

200,000

 

167,776

 
 

387,054

 

Consumer Staples - .2%

     

Church & Dwight Co., Sr. Unscd. Notes

 

3.95

 

8/1/2047

 

150,000

 

111,131

 

GSK Consumer Healthcare Capital US LLC, Gtd. Notes

 

3.63

 

3/24/2032

 

250,000

b 

210,869

 

Kimberly-Clark Corp., Sr. Unscd. Notes

 

3.10

 

3/26/2030

 

300,000

 

263,024

 

The Estee Lauder Companies, Sr. Unscd. Notes

 

2.60

 

4/15/2030

 

300,000

 

252,177

 

The Procter & Gamble Company, Sr. Unscd. Notes

 

1.00

 

4/23/2026

 

100,000

 

88,552

 

The Procter & Gamble Company, Sr. Unscd. Notes

 

1.95

 

4/23/2031

 

200,000

 

161,213

 

Unilever Capital Corp., Gtd. Notes

 

1.38

 

9/14/2030

 

500,000

 

378,192

 
 

1,465,158

 

Diversified Financials - .9%

     

AerCap Global Aviation Trust, Gtd. Notes

 

1.65

 

10/29/2024

 

300,000

 

272,429

 

AerCap Global Aviation Trust, Gtd. Notes

 

3.30

 

1/30/2032

 

299,000

 

224,766

 

Affiliated Managers Group Inc., Sr. Unscd. Notes

 

3.50

 

8/1/2025

 

250,000

 

237,945

 

Air Lease Corp., Sr. Unscd. Notes

 

0.70

 

2/15/2024

 

300,000

 

280,254

 

Air Lease Corp., Sr. Unscd. Notes

 

3.38

 

7/1/2025

 

300,000

 

277,867

 

Ally Financial Inc., Sr. Unscd. Notes

 

3.88

 

5/21/2024

 

200,000

 

193,215

 

Ally Financial Inc., Sr. Unscd. Notes

 

5.80

 

5/1/2025

 

250,000

a 

250,158

 

American Express Co., Sr. Unscd. Notes

 

3.30

 

5/3/2027

 

300,000

 

271,951

 

American Express Co., Sub. Notes

 

3.63

 

12/5/2024

 

250,000

 

241,397

 

BlackRock Inc., Sr. Unscd. Notes

 

3.50

 

3/18/2024

 

250,000

 

245,325

 

Blackstone Secured Lending Fund, Sr. Unscd. Notes

 

3.63

 

1/15/2026

 

300,000

 

270,466

 

Capital One Financial Corp., Sr. Unscd. Notes

 

3.27

 

3/1/2030

 

200,000

 

164,322

 

Capital One Financial Corp., Sub. Notes

 

3.75

 

7/28/2026

 

450,000

 

411,744

 

CI Financial Corp., Sr. Unscd. Notes

 

4.10

 

6/15/2051

 

300,000

 

169,121

 

CME Group Inc., Sr. Unscd. Notes

 

3.00

 

3/15/2025

 

250,000

 

238,980

 

FS KKR Capital Corp., Sr. Unscd. Notes

 

3.40

 

1/15/2026

 

200,000

 

176,216

 

Intercontinental Exchange Inc., Sr. Unscd. Notes

 

2.10

 

6/15/2030

 

200,000

 

158,823

 

18

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Diversified Financials - .9% (continued)

     

Intercontinental Exchange Inc., Sr. Unscd. Notes

 

2.65

 

9/15/2040

 

75,000

 

49,413

 

Intercontinental Exchange Inc., Sr. Unscd. Notes

 

3.00

 

6/15/2050

 

200,000

 

126,250

 

Intercontinental Exchange Inc., Sr. Unscd. Notes

 

4.60

 

3/15/2033

 

50,000

 

46,083

 

Intercontinental Exchange Inc., Sr. Unscd. Notes

 

5.20

 

6/15/2062

 

65,000

 

58,020

 

Invesco Finance PLC, Gtd. Notes

 

4.00

 

1/30/2024

 

250,000

 

245,860

 

Jefferies Financial Group LLC, Sr. Unscd. Debs.

 

6.45

 

6/8/2027

 

35,000

 

35,253

 

Legg Mason Inc., Gtd. Notes

 

5.63

 

1/15/2044

 

100,000

 

90,694

 

Mastercard Inc., Sr. Unscd. Notes

 

3.85

 

3/26/2050

 

250,000

 

196,575

 

Owl Rock Capital Corp., Sr. Unscd. Notes

 

3.40

 

7/15/2026

 

200,000

 

170,578

 

Prospect Capital Corp., Sr. Unscd. Notes

 

3.36

 

11/15/2026

 

300,000

 

243,171

 

Synchrony Financial, Sr. Unscd. Notes

 

4.25

 

8/15/2024

 

250,000

 

241,473

 

Visa Inc., Sr. Unscd. Notes

 

1.10

 

2/15/2031

 

300,000

 

224,360

 

Visa Inc., Sr. Unscd. Notes

 

2.00

 

8/15/2050

 

140,000

 

77,925

 

Visa Inc., Sr. Unscd. Notes

 

3.65

 

9/15/2047

 

55,000

 

41,940

 
 

5,932,574

 

Educational Services - .0%

     

California Institute of Technology, Unscd. Bonds

 

4.32

 

8/1/2045

 

110,000

 

91,879

 

Electronic Components - .1%

     

Honeywell International Inc., Sr. Unscd. Notes

 

1.10

 

3/1/2027

 

200,000

 

171,662

 

Jabil Inc., Sr. Unscd. Notes

 

3.00

 

1/15/2031

 

200,000

 

155,721

 
 

327,383

 

Energy - 1.6%

     

Baker Hughes Co-Obligor Inc., Sr. Unscd. Notes

 

4.49

 

5/1/2030

 

200,000

 

183,838

 

BP Capital Markets America Inc., Gtd. Notes

 

3.63

 

4/6/2030

 

300,000

 

268,127

 

BP Capital Markets America Inc., Gtd. Notes

 

3.80

 

9/21/2025

 

300,000

a 

291,351

 

BP Capital Markets America Inc., Gtd. Notes

 

3.94

 

9/21/2028

 

300,000

 

278,780

 

BP Capital Markets America Inc., Gtd. Notes

 

4.23

 

11/6/2028

 

100,000

 

94,227

 

Canadian Natural Resources Ltd., Sr. Unscd. Notes

 

6.25

 

3/15/2038

 

200,000

 

192,695

 

Cenovus Energy Inc., Sr. Unscd. Notes

 

6.75

 

11/15/2039

 

115,000

 

113,348

 

19

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Energy - 1.6% (continued)

     

Chevron Corp., Sr. Unscd. Notes

 

3.08

 

5/11/2050

 

300,000

 

205,364

 

ConocoPhillips Co., Gtd. Notes

 

3.76

 

3/15/2042

 

200,000

 

155,924

 

ConocoPhillips Co., Gtd. Notes

 

5.95

 

3/15/2046

 

250,000

 

254,890

 

ConocoPhillips Co., Sr. Unscd. Notes

 

6.95

 

4/15/2029

 

125,000

 

135,824

 

Devon Energy Corp., Sr. Unscd. Notes

 

5.85

 

12/15/2025

 

71,000

 

71,500

 

Enbridge Inc., Gtd. Notes

 

4.25

 

12/1/2026

 

250,000

 

236,829

 

Energy Transfer LP, Gtd. Notes

 

5.00

 

5/15/2044

 

250,000

 

189,985

 

Energy Transfer LP, Sr. Unscd. Notes

 

2.90

 

5/15/2025

 

300,000

 

278,657

 

Energy Transfer LP, Sr. Unscd. Notes

 

3.75

 

5/15/2030

 

200,000

 

170,225

 

Energy Transfer LP, Sr. Unscd. Notes

 

4.95

 

1/15/2043

 

200,000

 

151,507

 

Energy Transfer LP, Sr. Unscd. Notes

 

6.25

 

4/15/2049

 

95,000

 

83,070

 

Enterprise Products Operating LLC, Gtd. Notes

 

3.13

 

7/31/2029

 

300,000

 

258,126

 

Enterprise Products Operating LLC, Gtd. Notes

 

3.70

 

2/15/2026

 

200,000

 

189,758

 

Enterprise Products Operating LLC, Gtd. Notes

 

3.95

 

1/31/2060

 

95,000

 

63,302

 

Enterprise Products Operating LLC, Gtd. Notes

 

4.25

 

2/15/2048

 

75,000

 

55,833

 

Enterprise Products Operating LLC, Gtd. Notes

 

4.90

 

5/15/2046

 

200,000

 

163,935

 

EOG Resources Inc., Sr. Unscd. Notes

 

3.90

 

4/1/2035

 

200,000

 

170,779

 

Equinor ASA, Gtd. Notes

 

2.65

 

1/15/2024

 

500,000

 

486,487

 

Equinor ASA, Gtd. Notes

 

3.63

 

4/6/2040

 

200,000

 

155,902

 

Exxon Mobil Corp., Sr. Unscd. Notes

 

2.99

 

3/19/2025

 

300,000

 

287,192

 

Exxon Mobil Corp., Sr. Unscd. Notes

 

3.10

 

8/16/2049

 

230,000

 

156,806

 

Exxon Mobil Corp., Sr. Unscd. Notes

 

4.11

 

3/1/2046

 

250,000

 

200,758

 

Halliburton Co., Sr. Unscd. Bonds

 

7.45

 

9/15/2039

 

300,000

 

320,766

 

Halliburton Co., Sr. Unscd. Notes

 

3.80

 

11/15/2025

 

167,000

 

160,610

 

Hess Corp., Sr. Unscd. Notes

 

5.60

 

2/15/2041

 

250,000

 

225,811

 

Kinder Morgan Inc., Gtd. Notes

 

3.60

 

2/15/2051

 

200,000

 

129,843

 

Marathon Oil Corp., Sr. Unscd. Notes

 

6.60

 

10/1/2037

 

150,000

 

147,356

 

Marathon Petroleum Corp., Sr. Unscd. Notes

 

4.75

 

9/15/2044

 

150,000

 

118,547

 

MPLX LP, Sr. Unscd. Notes

 

4.90

 

4/15/2058

 

115,000

 

83,617

 

MPLX LP, Sr. Unscd. Notes

 

5.50

 

2/15/2049

 

150,000

 

125,497

 

ONEOK Partners LP, Gtd. Notes

 

6.85

 

10/15/2037

 

60,000

 

57,251

 

Phillips 66, Gtd. Notes

 

1.30

 

2/15/2026

 

200,000

 

174,771

 

Plains All American Pipeline LP, Sr. Unscd. Notes

 

4.90

 

2/15/2045

 

250,000

 

181,948

 

Sabine Pass Liquefaction LLC, Sr. Scd. Notes

 

5.00

 

3/15/2027

 

300,000

 

289,398

 

20

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Energy - 1.6% (continued)

     

Shell International Finance BV, Gtd. Notes

 

2.38

 

11/7/2029

 

200,000

 

168,790

 

Shell International Finance BV, Gtd. Notes

 

2.75

 

4/6/2030

 

250,000

 

214,041

 

Shell International Finance BV, Gtd. Notes

 

3.25

 

4/6/2050

 

250,000

 

172,221

 

Shell International Finance BV, Gtd. Notes

 

4.13

 

5/11/2035

 

260,000

 

229,885

 

Spectra Energy Partners LP, Gtd. Notes

 

5.95

 

9/25/2043

 

200,000

 

185,651

 

Suncor Energy Inc., Sr. Unscd. Notes

 

4.00

 

11/15/2047

 

50,000

 

36,544

 

Suncor Energy Inc., Sr. Unscd. Notes

 

6.50

 

6/15/2038

 

300,000

 

295,425

 

Tennessee Gas Pipeline Co., Gtd. Debs.

 

7.63

 

4/1/2037

 

70,000

 

72,716

 

The Williams Companies Inc., Sr. Unscd. Notes

 

4.00

 

9/15/2025

 

100,000

 

95,977

 

The Williams Companies Inc., Sr. Unscd. Notes

 

6.30

 

4/15/2040

 

200,000

 

193,113

 

TotalEnergies Capital International SA, Gtd. Notes

 

2.83

 

1/10/2030

 

170,000

 

146,052

 

TotalEnergies Capital International SA, Gtd. Notes

 

3.46

 

7/12/2049

 

50,000

 

35,193

 

Transcanada Pipelines Ltd., Sr. Unscd. Notes

 

4.88

 

5/15/2048

 

60,000

 

49,559

 

Transcanada Pipelines Ltd., Sr. Unscd. Notes

 

6.20

 

10/15/2037

 

75,000

 

73,062

 

Transcanada Pipelines Ltd., Sr. Unscd. Notes

 

7.63

 

1/15/2039

 

300,000

 

328,379

 

Valero Energy Corp., Sr. Unscd. Notes

 

6.63

 

6/15/2037

 

165,000

 

165,576

 

Valero Energy Corp., Sr. Unscd. Notes

 

7.50

 

4/15/2032

 

170,000

 

184,418

 
 

10,207,036

 

Environmental Control - .0%

     

Waste Management Inc., Gtd. Notes

 

4.15

 

7/15/2049

 

250,000

 

201,509

 

Financials - .0%

     

Brookfield Asset Management Inc., Sr. Unscd. Notes

 

4.00

 

1/15/2025

 

250,000

 

242,498

 

Food Products - .5%

     

Campbell Soup Co., Sr. Unscd. Notes

 

3.30

 

3/19/2025

 

200,000

 

190,323

 

Campbell Soup Co., Sr. Unscd. Notes

 

4.15

 

3/15/2028

 

80,000

 

75,108

 

Conagra Brands Inc., Sr. Unscd. Notes

 

4.85

 

11/1/2028

 

100,000

 

94,698

 

Conagra Brands Inc., Sr. Unscd. Notes

 

5.40

 

11/1/2048

 

60,000

a 

51,488

 

General Mills Inc., Sr. Unscd. Notes

 

2.88

 

4/15/2030

 

150,000

 

126,869

 

21

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Food Products - .5% (continued)

     

General Mills Inc., Sr. Unscd. Notes

 

3.00

 

2/1/2051

 

150,000

 

94,205

 

Hormel Foods Corp., Sr. Unscd. Notes

 

1.80

 

6/11/2030

 

200,000

 

158,826

 

Kellogg Co., Sr. Unscd. Notes

 

2.65

 

12/1/2023

 

300,000

 

294,136

 

Kraft Heinz Foods Co., Gtd. Notes

 

4.38

 

6/1/2046

 

200,000

 

156,485

 

Kraft Heinz Foods Co., Gtd. Notes

 

6.50

 

2/9/2040

 

200,000

 

202,266

 

McCormick & Co., Sr. Unscd. Notes

 

0.90

 

2/15/2026

 

200,000

 

172,647

 

McCormick & Co., Sr. Unscd. Notes

 

2.50

 

4/15/2030

 

300,000

 

241,867

 

Mondelez International Inc., Sr. Unscd. Notes

 

2.75

 

4/13/2030

 

138,000

 

114,929

 

Sysco Corp., Gtd. Notes

 

5.38

 

9/21/2035

 

200,000

 

189,268

 

The Kroger Company, Sr. Unscd. Notes

 

3.70

 

8/1/2027

 

300,000

a 

277,755

 

The Kroger Company, Sr. Unscd. Notes

 

7.50

 

4/1/2031

 

200,000

 

220,557

 

Tyson Foods Inc., Sr. Unscd. Bonds

 

5.15

 

8/15/2044

 

250,000

 

220,029

 
 

2,881,456

 

Foreign Governmental - 1.2%

     

Canada, Sr. Unscd. Bonds

 

1.63

 

1/22/2025

 

200,000

 

187,741

 

Chile, Sr. Unscd. Notes

 

3.13

 

3/27/2025

 

500,000

 

480,430

 

Finland, Sr. Unscd. Bonds

 

6.95

 

2/15/2026

 

25,000

 

26,570

 

Hungary, Sr. Unscd. Notes

 

7.63

 

3/29/2041

 

300,000

 

301,390

 

Indonesia, Sr. Unscd. Notes

 

3.50

 

1/11/2028

 

300,000

 

275,525

 

Indonesia, Sr. Unscd. Notes

 

3.85

 

10/15/2030

 

300,000

a 

269,474

 

Indonesia, Sr. Unscd. Notes

 

4.35

 

1/11/2048

 

300,000

 

234,355

 

Israel, Sr. Unscd. Bonds

 

3.88

 

7/3/2050

 

250,000

a 

190,157

 

Israel, Sr. Unscd. Notes

 

3.38

 

1/15/2050

 

300,000

 

208,170

 

Mexico, Sr. Unscd. Notes

 

2.66

 

5/24/2031

 

300,000

 

232,992

 

Mexico, Sr. Unscd. Notes

 

4.28

 

8/14/2041

 

300,000

 

217,827

 

Mexico, Sr. Unscd. Notes

 

4.60

 

1/23/2046

 

300,000

 

219,035

 

Mexico, Sr. Unscd. Notes

 

5.00

 

4/27/2051

 

250,000

 

191,069

 

Mexico, Sr. Unscd. Notes

 

5.55

 

1/21/2045

 

350,000

a 

296,768

 

Panama, Sr. Unscd. Bonds

 

3.88

 

3/17/2028

 

250,000

 

227,159

 

Panama, Sr. Unscd. Bonds

 

4.50

 

4/16/2050

 

200,000

 

136,176

 

Panama, Sr. Unscd. Bonds

 

6.70

 

1/26/2036

 

200,000

 

195,173

 

Peru, Sr. Unscd. Bonds

 

6.55

 

3/14/2037

 

370,000

 

371,343

 

Peru, Sr. Unscd. Bonds

 

7.35

 

7/21/2025

 

500,000

 

521,539

 

Philippines, Sr. Unscd. Bonds

 

3.70

 

2/2/2042

 

400,000

 

299,688

 

Philippines, Sr. Unscd. Bonds

 

10.63

 

3/16/2025

 

400,000

 

447,387

 

Philippines, Sr. Unscd. Notes

 

5.17

 

10/13/2027

 

200,000

 

199,470

 

Philippines, Sr. Unscd. Notes

 

5.61

 

4/13/2033

 

200,000

 

200,532

 

Province of Alberta Canada, Sr. Unscd. Notes

 

3.30

 

3/15/2028

 

80,000

 

74,865

 

22

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Foreign Governmental - 1.2% (continued)

     

Province of British Columbia Canada, Sr. Unscd. Bonds, Ser. USD2

 

6.50

 

1/15/2026

 

525,000

 

548,333

 

Province of Quebec Canada, Sr. Unscd. Debs., Ser. PD

 

7.50

 

9/15/2029

 

300,000

 

350,255

 

Uruguay, Sr. Unscd. Bonds

 

4.98

 

4/20/2055

 

105,000

 

91,373

 

Uruguay, Sr. Unscd. Bonds

 

7.63

 

3/21/2036

 

300,000

 

355,681

 
 

7,350,477

 

Health Care - 2.5%

     

Abbott Laboratories, Sr. Unscd. Notes

 

1.40

 

6/30/2030

 

200,000

 

154,600

 

Abbott Laboratories, Sr. Unscd. Notes

 

4.90

 

11/30/2046

 

200,000

 

187,030

 

AbbVie Inc., Sr. Unscd. Notes

 

3.60

 

5/14/2025

 

170,000

 

163,223

 

AbbVie Inc., Sr. Unscd. Notes

 

3.80

 

3/15/2025

 

300,000

 

289,548

 

AbbVie Inc., Sr. Unscd. Notes

 

4.25

 

11/14/2028

 

110,000

 

103,634

 

AbbVie Inc., Sr. Unscd. Notes

 

4.25

 

11/21/2049

 

490,000

 

380,778

 

AbbVie Inc., Sr. Unscd. Notes

 

4.75

 

3/15/2045

 

200,000

 

167,854

 

Aetna Inc., Sr. Unscd. Notes

 

4.75

 

3/15/2044

 

250,000

 

203,466

 

Aetna Inc., Sr. Unscd. Notes

 

6.63

 

6/15/2036

 

150,000

 

151,350

 

AmerisourceBergen Corp., Sr. Unscd. Notes

 

2.80

 

5/15/2030

 

100,000

 

81,936

 

Amgen Inc., Sr. Unscd. Notes

 

2.45

 

2/21/2030

 

70,000

 

57,751

 

Amgen Inc., Sr. Unscd. Notes

 

2.60

 

8/19/2026

 

500,000

 

457,071

 

Amgen Inc., Sr. Unscd. Notes

 

2.80

 

8/15/2041

 

200,000

 

134,106

 

Amgen Inc., Sr. Unscd. Notes

 

3.00

 

1/15/2052

 

200,000

 

123,507

 

Amgen Inc., Sr. Unscd. Notes

 

3.38

 

2/21/2050

 

60,000

 

40,064

 

Amgen Inc., Sr. Unscd. Notes

 

4.66

 

6/15/2051

 

100,000

 

82,756

 

AstraZeneca PLC, Sr. Unscd. Notes

 

1.38

 

8/6/2030

 

370,000

 

283,234

 

AstraZeneca PLC, Sr. Unscd. Notes

 

4.38

 

8/17/2048

 

45,000

 

38,129

 

AstraZeneca PLC, Sr. Unscd. Notes

 

4.38

 

11/16/2045

 

205,000

 

173,816

 

Banner Health, Unscd. Bonds

 

2.34

 

1/1/2030

 

300,000

 

245,736

 

Baxalta Inc., Gtd. Notes

 

5.25

 

6/23/2045

 

200,000

 

179,126

 

Becton Dickinson & Co., Sr. Unscd. Notes

 

3.73

 

12/15/2024

 

386,000

 

374,456

 

Biogen Inc., Sr. Unscd. Notes

 

4.05

 

9/15/2025

 

500,000

 

481,308

 

Boston Scientific Corp., Sr. Unscd. Notes

 

1.90

 

6/1/2025

 

300,000

 

277,013

 

Bristol-Myers Squibb Co., Sr. Unscd. Notes

 

0.75

 

11/13/2025

 

200,000

 

176,788

 

Bristol-Myers Squibb Co., Sr. Unscd. Notes

 

2.35

 

11/13/2040

 

200,000

 

130,299

 

Bristol-Myers Squibb Co., Sr. Unscd. Notes

 

2.95

 

3/15/2032

 

55,000

 

46,582

 

23

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Health Care - 2.5% (continued)

     

Bristol-Myers Squibb Co., Sr. Unscd. Notes

 

3.40

 

7/26/2029

 

78,000

 

70,918

 

Bristol-Myers Squibb Co., Sr. Unscd. Notes

 

3.55

 

3/15/2042

 

40,000

 

30,590

 

Bristol-Myers Squibb Co., Sr. Unscd. Notes

 

3.90

 

2/20/2028

 

90,000

 

85,387

 

Bristol-Myers Squibb Co., Sr. Unscd. Notes

 

4.35

 

11/15/2047

 

90,000

 

74,839

 

Bristol-Myers Squibb Co., Sr. Unscd. Notes

 

4.55

 

2/20/2048

 

70,000

 

59,926

 

Cardinal Health Inc., Sr. Unscd. Notes

 

4.60

 

3/15/2043

 

300,000

 

232,150

 

Centene Corp., Sr. Unscd. Notes

 

2.45

 

7/15/2028

 

230,000

 

189,522

 

Centene Corp., Sr. Unscd. Notes

 

2.63

 

8/1/2031

 

190,000

 

145,662

 

Cigna Corp., Gtd. Notes

 

3.88

 

10/15/2047

 

75,000

 

53,978

 

Cigna Corp., Gtd. Notes

 

4.13

 

11/15/2025

 

130,000

 

125,759

 

Cigna Corp., Gtd. Notes

 

4.38

 

10/15/2028

 

230,000

 

216,705

 

Cigna Corp., Sr. Unscd. Notes

 

2.38

 

3/15/2031

 

80,000

 

63,497

 

CVS Health Corp., Sr. Unscd. Notes

 

1.75

 

8/21/2030

 

85,000

 

64,774

 

CVS Health Corp., Sr. Unscd. Notes

 

3.25

 

8/15/2029

 

100,000

 

86,824

 

CVS Health Corp., Sr. Unscd. Notes

 

4.30

 

3/25/2028

 

300,000

 

281,765

 

CVS Health Corp., Sr. Unscd. Notes

 

4.78

 

3/25/2038

 

500,000

 

434,966

 

CVS Health Corp., Sr. Unscd. Notes

 

5.05

 

3/25/2048

 

200,000

 

170,259

 

Danaher Corp., Sr. Unscd. Notes

 

4.38

 

9/15/2045

 

250,000

 

206,567

 

Dignity Health, Scd. Bonds

 

5.27

 

11/1/2064

 

154,000

 

123,727

 

Elevance Health Inc., Sr. Unscd. Notes

 

2.25

 

5/15/2030

 

200,000

 

160,772

 

Elevance Health Inc., Sr. Unscd. Notes

 

3.60

 

3/15/2051

 

60,000

 

42,305

 

Eli Lilly & Co., Sr. Unscd. Notes

 

3.10

 

5/15/2027

 

250,000

 

233,391

 

Gilead Sciences Inc., Sr. Unscd. Notes

 

1.20

 

10/1/2027

 

80,000

 

65,870

 

Gilead Sciences Inc., Sr. Unscd. Notes

 

4.15

 

3/1/2047

 

220,000

 

172,108

 

GlaxoSmithKline Capital Inc., Gtd. Bonds

 

6.38

 

5/15/2038

 

300,000

 

322,003

 

HCA Inc., Gtd. Notes

 

4.13

 

6/15/2029

 

110,000

 

97,183

 

HCA Inc., Gtd. Notes

 

5.13

 

6/15/2039

 

50,000

 

41,503

 

HCA Inc., Gtd. Notes

 

5.25

 

6/15/2049

 

100,000

 

81,208

 

Johnson & Johnson, Sr. Unscd. Notes

 

2.10

 

9/1/2040

 

400,000

 

263,313

 

Johnson & Johnson, Sr. Unscd. Notes

 

2.45

 

3/1/2026

 

380,000

 

355,212

 

Johnson & Johnson, Sr. Unscd. Notes

 

3.50

 

1/15/2048

 

50,000

 

38,509

 

Kaiser Foundation Hospitals, Gtd. Notes

 

3.15

 

5/1/2027

 

500,000

 

459,483

 

Kaiser Foundation Hospitals, Unscd. Bonds, Ser. 2021

 

3.00

 

6/1/2051

 

70,000

 

43,350

 

24

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Health Care - 2.5% (continued)

     

Memorial Sloan-Kettering Cancer Center, Sr. Unscd. Notes, Ser. 2015

 

4.20

 

7/1/2055

 

200,000

 

154,170

 

Merck & Co. Inc., Sr. Unscd. Notes

 

1.45

 

6/24/2030

 

200,000

 

155,391

 

Merck & Co. Inc., Sr. Unscd. Notes

 

2.35

 

6/24/2040

 

50,000

 

33,201

 

Merck & Co. Inc., Sr. Unscd. Notes

 

2.45

 

6/24/2050

 

60,000

 

36,162

 

Merck & Co. Inc., Sr. Unscd. Notes

 

2.75

 

2/10/2025

 

250,000

 

238,971

 

Merck & Co. Inc., Sr. Unscd. Notes

 

2.90

 

12/10/2061

 

110,000

 

67,046

 

Merck & Co. Inc., Sr. Unscd. Notes

 

3.90

 

3/7/2039

 

55,000

 

45,853

 

Mount Sinai Hospitals Group Inc., Scd. Bonds, Ser. 2019

 

3.74

 

7/1/2049

 

300,000

 

206,721

 

Mylan Inc., Gtd. Notes

 

5.40

 

11/29/2043

 

300,000

 

214,341

 

Northwell Healthcare Inc., Scd. Notes

 

3.98

 

11/1/2046

 

250,000

 

178,330

 

Novartis Capital Corp., Gtd. Notes

 

2.20

 

8/14/2030

 

390,000

 

322,977

 

Novartis Capital Corp., Gtd. Notes

 

2.75

 

8/14/2050

 

60,000

 

39,433

 

Pfizer Inc., Sr. Unscd. Notes

 

0.80

 

5/28/2025

 

300,000

 

272,168

 

Pfizer Inc., Sr. Unscd. Notes

 

2.55

 

5/28/2040

 

300,000

 

208,000

 

Pfizer Inc., Sr. Unscd. Notes

 

3.45

 

3/15/2029

 

100,000

 

91,590

 

Providence St. Joseph Health Obligated Group, Unscd. Notes, Ser. I

 

3.74

 

10/1/2047

 

250,000

 

182,787

 

Quest Diagnostics Inc., Sr. Unscd. Notes

 

3.50

 

3/30/2025

 

250,000

 

239,864

 

Stryker Corp., Sr. Unscd. Notes

 

3.50

 

3/15/2026

 

250,000

 

236,777

 

Stryker Corp., Sr. Unscd. Notes

 

4.38

 

5/15/2044

 

100,000

 

79,970

 

Takeda Pharmaceutical Co., Sr. Unscd. Notes

 

5.00

 

11/26/2028

 

200,000

 

193,186

 

Thermo Fisher Scientific Inc., Sr. Unscd. Notes

 

2.80

 

10/15/2041

 

200,000

 

138,409

 

Trinity Health Corp., Scd. Bonds

 

4.13

 

12/1/2045

 

200,000

 

157,526

 

UnitedHealth Group Inc., Sr. Unscd. Notes

 

2.30

 

5/15/2031

 

75,000

 

60,179

 

UnitedHealth Group Inc., Sr. Unscd. Notes

 

3.05

 

5/15/2041

 

75,000

 

53,270

 

UnitedHealth Group Inc., Sr. Unscd. Notes

 

3.25

 

5/15/2051

 

100,000

 

68,031

 

UnitedHealth Group Inc., Sr. Unscd. Notes

 

3.75

 

10/15/2047

 

70,000

 

52,502

 

UnitedHealth Group Inc., Sr. Unscd. Notes

 

3.88

 

12/15/2028

 

100,000

 

93,070

 

UnitedHealth Group Inc., Sr. Unscd. Notes

 

4.20

 

5/15/2032

 

45,000

 

41,470

 

UnitedHealth Group Inc., Sr. Unscd. Notes

 

4.25

 

6/15/2048

 

80,000

 

65,299

 

25

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Health Care - 2.5% (continued)

     

UnitedHealth Group Inc., Sr. Unscd. Notes

 

4.45

 

12/15/2048

 

60,000

 

49,961

 

UnitedHealth Group Inc., Sr. Unscd. Notes

 

4.75

 

7/15/2045

 

280,000

 

245,345

 

UnitedHealth Group Inc., Sr. Unscd. Notes

 

4.95

 

5/15/2062

 

75,000

 

65,996

 

UnitedHealth Group Inc., Sr. Unscd. Notes

 

5.25

 

2/15/2028

 

150,000

 

150,534

 

UnitedHealth Group Inc., Sr. Unscd. Notes

 

5.30

 

2/15/2030

 

150,000

 

150,072

 

UnitedHealth Group Inc., Sr. Unscd. Notes

 

5.35

 

2/15/2033

 

100,000

 

100,399

 

UnitedHealth Group Inc., Sr. Unscd. Notes

 

5.88

 

2/15/2053

 

100,000

 

102,199

 

UnitedHealth Group Inc., Sr. Unscd. Notes

 

6.05

 

2/15/2063

 

100,000

 

102,959

 

UnitedHealth Group Inc., Sr. Unscd. Notes

 

6.88

 

2/15/2038

 

210,000

 

229,673

 

Viatris Inc., Gtd. Notes

 

2.70

 

6/22/2030

 

150,000

 

112,343

 

Zoetis Inc., Sr. Unscd. Notes

 

3.00

 

5/15/2050

 

300,000

 

189,655

 
 

15,705,016

 

Industrial - .7%

     

3M Co., Sr. Unscd. Notes

 

2.25

 

9/19/2026

 

500,000

a 

451,324

 

3M Co., Sr. Unscd. Notes

 

2.38

 

8/26/2029

 

390,000

 

321,416

 

3M Co., Sr. Unscd. Notes

 

3.38

 

3/1/2029

 

300,000

a 

269,423

 

Caterpillar Financial Services Corp., Sr. Unscd. Notes

 

0.80

 

11/13/2025

 

200,000

 

177,235

 

Caterpillar Inc., Sr. Unscd. Bonds

 

6.05

 

8/15/2036

 

237,000

 

248,767

 

Caterpillar Inc., Sr. Unscd. Notes

 

3.25

 

4/9/2050

 

150,000

 

105,564

 

Eaton Corp., Gtd. Notes

 

4.15

 

11/2/2042

 

200,000

 

161,631

 

GE Capital International Funding Co., Gtd. Notes

 

4.42

 

11/15/2035

 

800,000

 

706,892

 

Illinois Tool Works Inc., Sr. Unscd. Notes

 

3.90

 

9/1/2042

 

170,000

 

136,054

 

John Deere Capital Corp., Sr. Unscd. Notes

 

0.70

 

1/15/2026

 

200,000

 

174,817

 

John Deere Capital Corp., Sr. Unscd. Notes

 

1.45

 

1/15/2031

 

300,000

 

226,973

 

John Deere Capital Corp., Sr. Unscd. Notes

 

4.15

 

9/15/2027

 

200,000

 

192,374

 

Otis Worldwide Corp., Sr. Unscd. Notes

 

2.06

 

4/5/2025

 

300,000

 

277,710

 

Parker-Hannifin Corp., Sr. Unscd. Notes

 

3.25

 

6/14/2029

 

300,000

 

260,442

 

Parker-Hannifin Corp., Sr. Unscd. Notes

 

4.00

 

6/14/2049

 

40,000

 

29,601

 

26

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Industrial - .7% (continued)

     

Stanley Black & Decker Inc., Sr. Unscd. Notes

 

2.30

 

3/15/2030

 

300,000

 

240,839

 

Textron Inc., Sr. Unscd. Notes

 

4.00

 

3/15/2026

 

500,000

 

477,469

 

Xylem Inc., Sr. Unscd. Notes

 

4.38

 

11/1/2046

 

250,000

 

196,907

 
 

4,655,438

 

Information Technology - .7%

     

Adobe Inc., Sr. Unscd. Notes

 

3.25

 

2/1/2025

 

250,000

 

241,882

 

Autodesk Inc., Sr. Unscd. Notes

 

4.38

 

6/15/2025

 

250,000

 

245,154

 

Broadridge Financial Solutions Inc., Sr. Unscd. Notes

 

2.90

 

12/1/2029

 

150,000

 

123,352

 

Electronic Arts Inc., Sr. Unscd. Notes

 

1.85

 

2/15/2031

 

200,000

 

154,429

 

Fiserv Inc., Sr. Unscd. Notes

 

3.50

 

7/1/2029

 

190,000

 

165,000

 

Fiserv Inc., Sr. Unscd. Notes

 

4.40

 

7/1/2049

 

100,000

 

75,412

 

Microsoft Corp., Sr. Unscd. Notes

 

2.53

 

6/1/2050

 

361,000

 

227,052

 

Microsoft Corp., Sr. Unscd. Notes

 

3.04

 

3/17/2062

 

360,000

 

235,271

 

Oracle Corp., Sr. Unscd. Notes

 

2.88

 

3/25/2031

 

205,000

 

161,756

 

Oracle Corp., Sr. Unscd. Notes

 

2.95

 

4/1/2030

 

350,000

 

285,388

 

Oracle Corp., Sr. Unscd. Notes

 

3.25

 

11/15/2027

 

250,000

 

222,064

 

Oracle Corp., Sr. Unscd. Notes

 

3.85

 

7/15/2036

 

500,000

 

374,933

 

Oracle Corp., Sr. Unscd. Notes

 

3.90

 

5/15/2035

 

300,000

 

232,592

 

Oracle Corp., Sr. Unscd. Notes

 

4.00

 

11/15/2047

 

160,000

 

106,308

 

Oracle Corp., Sr. Unscd. Notes

 

4.10

 

3/25/2061

 

210,000

 

130,830

 

Roper Technologies Inc., Sr. Unscd. Notes

 

1.00

 

9/15/2025

 

300,000

 

265,591

 

Roper Technologies Inc., Sr. Unscd. Notes

 

1.40

 

9/15/2027

 

300,000

 

246,719

 

Roper Technologies Inc., Sr. Unscd. Notes

 

3.80

 

12/15/2026

 

500,000

 

468,264

 

Take-Two Interactive Software Inc., Sr. Unscd. Notes

 

3.55

 

4/14/2025

 

100,000

 

95,410

 
 

4,057,407

 

Insurance - .7%

     

American International Group Inc., Sr. Unscd. Notes

 

3.88

 

1/15/2035

 

250,000

 

205,881

 

American International Group Inc., Sr. Unscd. Notes

 

4.75

 

4/1/2048

 

200,000

 

165,564

 

Aon Corp., Gtd. Notes

 

2.80

 

5/15/2030

 

100,000

 

82,042

 

Aon Corp., Gtd. Notes

 

3.75

 

5/2/2029

 

250,000

 

222,818

 

Aon Corp., Gtd. Notes

 

5.00

 

9/12/2032

 

200,000

 

188,779

 

Aon Global Ltd., Gtd. Notes

 

4.60

 

6/14/2044

 

200,000

 

161,032

 

Arthur J. Gallagher & Co., Sr. Unscd. Notes

 

3.50

 

5/20/2051

 

40,000

 

25,844

 

Athene Holding Ltd., Sr. Unscd. Notes

 

3.95

 

5/25/2051

 

150,000

 

96,000

 

27

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Insurance - .7% (continued)

     

Berkshire Hathaway Finance Corp., Gtd. Notes

 

2.85

 

10/15/2050

 

250,000

 

154,274

 

Berkshire Hathaway Finance Corp., Gtd. Notes

 

4.20

 

8/15/2048

 

135,000

 

108,943

 

Berkshire Hathaway Inc., Sr. Unscd. Notes

 

3.13

 

3/15/2026

 

200,000

 

189,678

 

Corebridge Financial Inc., Sr. Unscd. Notes

 

3.65

 

4/5/2027

 

100,000

b 

90,637

 

Corebridge Financial Inc., Sr. Unscd. Notes

 

3.90

 

4/5/2032

 

100,000

b 

83,714

 

Corebridge Financial Inc., Sr. Unscd. Notes

 

4.40

 

4/5/2052

 

100,000

b 

73,240

 

First American Financial Corp., Sr. Unscd. Notes

 

4.60

 

11/15/2024

 

500,000

 

485,776

 

Marsh & McLennan Inc., Sr. Unscd. Notes

 

4.38

 

3/15/2029

 

70,000

 

66,167

 

Marsh & McLennan Inc., Sr. Unscd. Notes

 

4.90

 

3/15/2049

 

65,000

 

55,600

 

Metlife Inc., Sr. Unscd. Notes

 

4.05

 

3/1/2045

 

200,000

 

153,856

 

Metlife Inc., Sr. Unscd. Notes

 

6.38

 

6/15/2034

 

150,000

 

156,243

 

Principal Financial Group Inc., Gtd. Notes

 

2.13

 

6/15/2030

 

300,000

 

232,207

 

Prudential Financial Inc., Jr. Sub. Notes

 

5.20

 

3/15/2044

 

300,000

 

278,919

 

Prudential Financial Inc., Sr. Unscd. Notes

 

3.70

 

3/13/2051

 

75,000

 

53,286

 

Prudential Financial Inc., Sr. Unscd. Notes

 

4.60

 

5/15/2044

 

200,000

 

165,489

 

Reinsurance Group of America Inc., Sr. Unscd. Notes

 

3.15

 

6/15/2030

 

300,000

 

246,147

 

The Allstate Corp., Sr. Unscd. Notes

 

0.75

 

12/15/2025

 

200,000

 

173,658

 

The Chubb Corp., Gtd. Notes

 

6.00

 

5/11/2037

 

200,000

 

204,988

 

The Progressive Corp., Sr. Unscd. Notes

 

4.13

 

4/15/2047

 

70,000

 

54,656

 

The Progressive Corp., Sr. Unscd. Notes

 

6.63

 

3/1/2029

 

100,000

 

106,022

 

The Travelers Companies, Sr. Unscd. Notes

 

4.05

 

3/7/2048

 

150,000

 

114,851

 
 

4,396,311

 

Internet Software & Services - .4%

     

Alphabet Inc., Sr. Unscd. Notes

 

0.45

 

8/15/2025

 

250,000

 

223,452

 

Alphabet Inc., Sr. Unscd. Notes

 

1.10

 

8/15/2030

 

215,000

 

165,294

 

Alphabet Inc., Sr. Unscd. Notes

 

1.90

 

8/15/2040

 

65,000

 

41,181

 

Alphabet Inc., Sr. Unscd. Notes

 

2.00

 

8/15/2026

 

300,000

 

273,146

 

Amazon.com Inc., Sr. Unscd. Notes

 

0.80

 

6/3/2025

 

200,000

 

180,782

 

Amazon.com Inc., Sr. Unscd. Notes

 

1.50

 

6/3/2030

 

200,000

 

156,292

 

28

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Internet Software & Services - .4% (continued)

     

Amazon.com Inc., Sr. Unscd. Notes

 

1.65

 

5/12/2028

 

300,000

 

253,650

 

Amazon.com Inc., Sr. Unscd. Notes

 

2.50

 

6/3/2050

 

200,000

 

119,086

 

Amazon.com Inc., Sr. Unscd. Notes

 

2.73

 

4/13/2024

 

100,000

 

97,400

 

Amazon.com Inc., Sr. Unscd. Notes

 

2.88

 

5/12/2041

 

250,000

 

177,790

 

Amazon.com Inc., Sr. Unscd. Notes

 

3.25

 

5/12/2061

 

220,000

 

142,201

 

Amazon.com Inc., Sr. Unscd. Notes

 

3.30

 

4/13/2027

 

100,000

 

93,933

 

Amazon.com Inc., Sr. Unscd. Notes

 

3.60

 

4/13/2032

 

100,000

a 

89,640

 

Amazon.com Inc., Sr. Unscd. Notes

 

4.10

 

4/13/2062

 

100,000

 

76,981

 

eBay Inc., Sr. Unscd. Notes

 

1.40

 

5/10/2026

 

300,000

 

261,274

 

eBay Inc., Sr. Unscd. Notes

 

3.65

 

5/10/2051

 

13,000

 

8,583

 

Meta Platforms Inc., Sr. Unscd. Notes

 

3.85

 

8/15/2032

 

200,000

b 

170,392

 

Meta Platforms Inc., Sr. Unscd. Notes

 

4.65

 

8/15/2062

 

110,000

b 

81,324

 
 

2,612,401

 

Materials - .0%

     

Berry Global Inc., Sr. Scd. Notes

 

1.57

 

1/15/2026

 

150,000

 

130,116

 

Media - .7%

     

Charter Communications Operating LLC, Sr. Scd. Notes

 

4.91

 

7/23/2025

 

510,000

 

495,437

 

Charter Communications Operating LLC, Sr. Scd. Notes

 

5.25

 

4/1/2053

 

200,000

 

150,776

 

Charter Communications Operating LLC, Sr. Scd. Notes

 

5.50

 

4/1/2063

 

200,000

 

151,525

 

Charter Communications Operating LLC, Sr. Scd. Notes

 

6.48

 

10/23/2045

 

250,000

 

221,873

 

Comcast Corp., Gtd. Bonds

 

4.00

 

8/15/2047

 

60,000

 

45,001

 

Comcast Corp., Gtd. Notes

 

1.50

 

2/15/2031

 

350,000

 

261,932

 

Comcast Corp., Gtd. Notes

 

2.45

 

8/15/2052

 

750,000

 

410,751

 

Comcast Corp., Gtd. Notes

 

3.38

 

8/15/2025

 

730,000

 

698,312

 

Comcast Corp., Gtd. Notes

 

3.90

 

3/1/2038

 

75,000

 

60,783

 

Comcast Corp., Gtd. Notes

 

4.00

 

3/1/2048

 

60,000

 

45,245

 

Comcast Corp., Gtd. Notes

 

4.60

 

10/15/2038

 

200,000

 

173,817

 

Comcast Corp., Gtd. Notes

 

6.45

 

3/15/2037

 

300,000

 

311,846

 

Discovery Communications LLC, Gtd. Notes

 

3.95

 

3/20/2028

 

350,000

 

304,098

 

Fox Corp., Sr. Unscd. Notes

 

4.03

 

1/25/2024

 

83,000

 

81,612

 

Paramount Global, Sr. Unscd. Debs.

 

7.88

 

7/30/2030

 

150,000

 

156,087

 

Paramount Global, Sr. Unscd. Notes

 

4.90

 

8/15/2044

 

240,000

 

168,534

 

The Walt Disney Company, Gtd. Notes

 

2.00

 

9/1/2029

 

225,000

 

184,085

 

The Walt Disney Company, Gtd. Notes

 

3.80

 

5/13/2060

 

350,000

 

250,087

 

Time Warner Cable LLC, Sr. Scd. Debs.

 

6.55

 

5/1/2037

 

350,000

 

312,746

 
 

4,484,547

 

29

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Metals & Mining - .3%

     

Barrick PD Australia Finance Ltd., Gtd. Notes

 

5.95

 

10/15/2039

 

200,000

 

192,128

 

Freeport-McMoRan Inc., Gtd. Notes

 

5.45

 

3/15/2043

 

65,000

 

53,494

 

Newmont Corp., Gtd. Notes

 

6.25

 

10/1/2039

 

126,000

 

123,941

 

Nucor Corp., Sr. Unscd. Notes

 

2.98

 

12/15/2055

 

200,000

 

113,327

 

Rio Tinto Alcan Inc., Sr. Unscd. Debs.

 

7.25

 

3/15/2031

 

350,000

 

388,559

 

Southern Copper Corp., Sr. Unscd. Notes

 

5.25

 

11/8/2042

 

300,000

 

260,497

 

Steel Dynamics Inc., Sr. Unscd. Notes

 

3.25

 

10/15/2050

 

60,000

 

35,652

 

Teck Resources Ltd., Sr. Unscd. Notes

 

3.90

 

7/15/2030

 

300,000

a 

255,550

 

Vale Overseas Ltd., Gtd. Notes

 

3.75

 

7/8/2030

 

200,000

 

164,814

 

Vale Overseas Ltd., Gtd. Notes

 

6.88

 

11/21/2036

 

250,000

 

243,375

 
 

1,831,337

 

Municipal Securities - .7%

     

American Municipal Power Inc., Revenue Bonds (Combined Hydroelectric Projects) (Build America Bond) Ser. B

 

8.08

 

2/15/2050

 

100,000

 

123,848

 

Bay Area Toll Authority, Revenue Bonds (Build America Bond) Ser. F2

 

6.26

 

4/1/2049

 

300,000

 

326,236

 

California, GO

 

3.50

 

4/1/2028

 

100,000

 

92,409

 

California, GO (Build America Bond)

 

7.50

 

4/1/2034

 

200,000

 

233,169

 

California, GO (Build America Bonds)

 

7.55

 

4/1/2039

 

300,000

 

359,884

 

Connecticut, GO, Ser. A

 

5.85

 

3/15/2032

 

200,000

 

207,349

 

District of Columbia, Revenue Bonds (Build America Bond) Ser. E

 

5.59

 

12/1/2034

 

200,000

 

203,283

 

Georgia Municipal Electric Authority, Revenue Bonds, Refunding (Build America Bond)

 

6.64

 

4/1/2057

 

337,000

 

340,130

 

Illinois, GO

 

5.10

 

6/1/2033

 

230,000

 

215,178

 

Los Angeles Unified School District, GO (Build America Bond)

 

5.75

 

7/1/2034

 

350,000

 

355,728

 

Massachusetts School Building Authority, Revenue Bonds (Build America Bond)

 

5.72

 

8/15/2039

 

100,000

 

102,960

 

Metropolitan Transportation Authority, Revenue Bonds (Build America Bond)

 

7.34

 

11/15/2039

 

300,000

 

352,215

 

New Jersey Turnpike Authority, Revenue Bonds (Build America Bond) Ser. F

 

7.41

 

1/1/2040

 

200,000

 

235,410

 

30

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Municipal Securities - .7% (continued)

     

New York City Municipal Water Finance Authority, Revenue Bonds (Build America Bond)

 

5.95

 

6/15/2042

 

345,000

 

360,052

 

Oklahoma Development Finance Authority, Revenue Bonds

 

4.71

 

5/1/2052

 

200,000

 

175,119

 

Pennsylvania Turnpike Commission, Revenue Bonds (Build America Bond) Ser. B

 

5.51

 

12/1/2045

 

200,000

 

196,193

 

Port Authority of New York & New Jersey, Revenue Bonds, Ser. 192

 

4.81

 

10/15/2065

 

300,000

 

261,513

 

The Ohio State University, Revenue Bonds, Ser. A

 

3.80

 

12/1/2046

 

250,000

 

193,621

 
 

4,334,297

 

Real Estate - .9%

     

Alexandria Real Estate Equities Inc., Gtd. Notes

 

2.00

 

5/18/2032

 

250,000

 

180,341

 

Alexandria Real Estate Equities Inc., Gtd. Notes

 

3.00

 

5/18/2051

 

200,000

 

114,645

 

American Tower Corp., Sr. Unscd. Notes

 

1.50

 

1/31/2028

 

200,000

 

158,637

 

American Tower Corp., Sr. Unscd. Notes

 

1.60

 

4/15/2026

 

300,000

 

259,259

 

American Tower Corp., Sr. Unscd. Notes

 

2.70

 

4/15/2031

 

300,000

 

234,227

 

American Tower Corp., Sr. Unscd. Notes

 

3.80

 

8/15/2029

 

90,000

 

78,578

 

Boston Properties LP, Sr. Unscd. Notes

 

4.50

 

12/1/2028

 

100,000

 

90,056

 

Corporate Office Properties LP, Gtd. Notes

 

2.00

 

1/15/2029

 

200,000

 

149,427

 

Crown Castle Inc., Sr. Unscd. Notes

 

2.25

 

1/15/2031

 

200,000

 

152,634

 

Crown Castle Inc., Sr. Unscd. Notes

 

3.70

 

6/15/2026

 

430,000

 

399,495

 

Equinix Inc., Sr. Unscd. Notes

 

1.45

 

5/15/2026

 

200,000

 

172,050

 

Equinix Inc., Sr. Unscd. Notes

 

3.40

 

2/15/2052

 

200,000

 

126,330

 

Essex Portfolio LP, Gtd. Notes

 

2.65

 

3/15/2032

 

150,000

 

114,065

 

Essex Portfolio LP, Gtd. Notes

 

4.00

 

3/1/2029

 

200,000

 

177,965

 

Kimco Realty Corp., Sr. Unscd. Notes

 

2.70

 

10/1/2030

 

200,000

 

157,644

 

Mid-America Apartments LP, Sr. Unscd. Notes

 

1.10

 

9/15/2026

 

400,000

 

338,498

 

National Retail Properties Inc., Sr. Unscd. Notes

 

3.90

 

6/15/2024

 

500,000

 

487,328

 

Office Properties Income Trust, Sr. Unscd. Notes

 

2.65

 

6/15/2026

 

200,000

 

145,958

 

Prologis LP, Sr. Unscd. Notes

 

2.25

 

4/15/2030

 

370,000

 

298,239

 

Prologis LP, Sr. Unscd. Notes

 

3.00

 

4/15/2050

 

35,000

 

22,062

 

31

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Real Estate - .9% (continued)

     

Realty Income Corp., Sr. Unscd. Notes

 

3.88

 

7/15/2024

 

250,000

 

244,275

 

Realty Income Corp., Sr. Unscd. Notes

 

3.95

 

8/15/2027

 

250,000

 

232,173

 

Rexford Industrial Realty LP, Gtd. Notes

 

2.15

 

9/1/2031

 

200,000

 

146,995

 

Simon Property Group LP, Sr. Unscd. Notes

 

2.65

 

7/15/2030

 

200,000

a 

158,345

 

Simon Property Group LP, Sr. Unscd. Notes

 

3.25

 

9/13/2049

 

65,000

 

39,361

 

Simon Property Group LP, Sr. Unscd. Notes

 

3.80

 

7/15/2050

 

200,000

 

135,081

 

Tanger Properties LP, Sr. Unscd. Notes

 

2.75

 

9/1/2031

 

400,000

 

273,848

 

UDR Inc., Gtd. Notes

 

2.10

 

8/1/2032

 

200,000

 

141,305

 

Ventas Realty LP, Gtd. Notes

 

4.00

 

3/1/2028

 

150,000

 

135,688

 

Ventas Realty LP, Gtd. Notes

 

4.88

 

4/15/2049

 

200,000

 

159,958

 

Welltower Inc., Sr. Unscd. Notes

 

4.13

 

3/15/2029

 

200,000

 

177,950

 
 

5,702,417

 

Retailing - .8%

     

Advance Auto Parts Inc., Gtd. Notes

 

1.75

 

10/1/2027

 

300,000

 

245,209

 

Autozone Inc., Sr. Unscd. Notes

 

3.13

 

4/21/2026

 

500,000

 

465,777

 

Costco Wholesale Corp., Sr. Unscd. Notes

 

1.60

 

4/20/2030

 

200,000

 

159,805

 

Costco Wholesale Corp., Sr. Unscd. Notes

 

3.00

 

5/18/2027

 

100,000

 

93,224

 

Dollar Tree Inc., Sr. Unscd. Notes

 

4.20

 

5/15/2028

 

95,000

 

88,455

 

Lowe's Cos., Sr. Unscd. Notes

 

1.70

 

9/15/2028

 

200,000

 

163,709

 

Lowe's Cos., Sr. Unscd. Notes

 

2.80

 

9/15/2041

 

200,000

 

127,593

 

Lowe's Cos., Sr. Unscd. Notes

 

3.00

 

10/15/2050

 

200,000

 

120,045

 

Lowe's Cos., Sr. Unscd. Notes

 

3.13

 

9/15/2024

 

250,000

 

241,814

 

Lowe's Cos., Sr. Unscd. Notes

 

3.65

 

4/5/2029

 

80,000

 

71,985

 

Lowe's Cos., Sr. Unscd. Notes

 

5.00

 

4/15/2033

 

100,000

 

94,435

 

Lowe's Cos., Sr. Unscd. Notes

 

5.80

 

9/15/2062

 

150,000

 

134,421

 

McDonald's Corp., Sr. Unscd. Notes

 

3.63

 

9/1/2049

 

50,000

 

35,354

 

McDonald's Corp., Sr. Unscd. Notes

 

4.88

 

12/9/2045

 

465,000

 

403,209

 

O'Reilly Automotive Inc., Sr. Unscd. Notes

 

1.75

 

3/15/2031

 

300,000

 

223,371

 

Starbucks Corp., Sr. Unscd. Notes

 

2.55

 

11/15/2030

 

400,000

 

326,971

 

Starbucks Corp., Sr. Unscd. Notes

 

4.45

 

8/15/2049

 

250,000

 

200,041

 

Target Corp., Sr. Unscd. Notes

 

2.50

 

4/15/2026

 

400,000

 

370,008

 

The Home Depot Inc., Sr. Unscd. Notes

 

1.50

 

9/15/2028

 

300,000

 

247,755

 

The Home Depot Inc., Sr. Unscd. Notes

 

3.35

 

4/15/2050

 

250,000

 

174,010

 

32

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Retailing - .8% (continued)

     

The Home Depot Inc., Sr. Unscd. Notes

 

3.35

 

9/15/2025

 

300,000

 

287,822

 

The Home Depot Inc., Sr. Unscd. Notes

 

5.88

 

12/16/2036

 

300,000

 

308,954

 

Walmart Inc., Sr. Unscd. Notes

 

3.95

 

6/28/2038

 

90,000

 

78,839

 

Walmart Inc., Sr. Unscd. Notes

 

4.05

 

6/29/2048

 

180,000

 

150,741

 

Walmart Inc., Sr. Unscd. Notes

 

4.15

 

9/9/2032

 

100,000

 

94,722

 

Walmart Inc., Sr. Unscd. Notes

 

4.50

 

9/9/2052

 

150,000

 

133,479

 
 

5,041,748

 

Semiconductors & Semiconductor Equipment - .5%

     

Analog Devices Inc., Sr. Unscd. Notes

 

4.25

 

10/1/2032

 

200,000

 

182,831

 

Applied Materials Inc., Sr. Unscd. Notes

 

3.90

 

10/1/2025

 

500,000

 

487,473

 

Broadcom Cayman Finance Ltd., Gtd. Notes

 

3.50

 

1/15/2028

 

110,000

 

96,800

 

Broadcom Inc., Gtd. Notes

 

2.45

 

2/15/2031

 

230,000

b 

172,851

 

Broadcom Inc., Gtd. Notes

 

2.60

 

2/15/2033

 

200,000

b 

142,423

 

Broadcom Inc., Gtd. Notes

 

3.50

 

2/15/2041

 

200,000

b 

132,137

 

Broadcom Inc., Gtd. Notes

 

4.11

 

9/15/2028

 

260,000

 

233,532

 

Broadcom Inc., Gtd. Notes

 

4.75

 

4/15/2029

 

210,000

 

195,332

 

Intel Corp., Sr. Unscd. Notes

 

3.15

 

5/11/2027

 

110,000

a 

101,675

 

Intel Corp., Sr. Unscd. Notes

 

3.25

 

11/15/2049

 

150,000

 

94,247

 

Intel Corp., Sr. Unscd. Notes

 

3.73

 

12/8/2047

 

120,000

 

83,460

 

Intel Corp., Sr. Unscd. Notes

 

3.90

 

3/25/2030

 

300,000

 

272,179

 

Intel Corp., Sr. Unscd. Notes

 

4.10

 

5/11/2047

 

80,000

 

59,552

 

Intel Corp., Sr. Unscd. Notes

 

4.75

 

3/25/2050

 

300,000

 

243,784

 

Intel Corp., Sr. Unscd. Notes

 

5.05

 

8/5/2062

 

65,000

 

53,001

 

NVIDIA Corp., Sr. Unscd. Notes

 

1.55

 

6/15/2028

 

300,000

 

247,989

 

Qualcomm Inc., Sr. Unscd. Notes

 

4.30

 

5/20/2047

 

120,000

 

98,212

 

Qualcomm Inc., Sr. Unscd. Notes

 

4.50

 

5/20/2052

 

25,000

 

20,784

 

Qualcomm Inc., Sr. Unscd. Notes

 

4.65

 

5/20/2035

 

140,000

 

129,223

 

Texas Instruments Inc., Sr. Unscd. Notes

 

1.13

 

9/15/2026

 

200,000

 

174,295

 

Texas Instruments Inc., Sr. Unscd. Notes

 

4.15

 

5/15/2048

 

80,000

 

65,867

 
 

3,287,647

 

Supranational Bank - 1.7%

     

Asian Development Bank, Sr. Unscd. Bonds

 

0.63

 

4/29/2025

 

220,000

 

199,857

 

Asian Development Bank, Sr. Unscd. Notes

 

1.00

 

4/14/2026

 

200,000

 

177,721

 

Asian Development Bank, Sr. Unscd. Notes

 

1.50

 

3/4/2031

 

200,000

 

161,399

 

33

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Supranational Bank - 1.7% (continued)

     

Asian Development Bank, Sr. Unscd. Notes

 

1.88

 

1/24/2030

 

100,000

 

84,854

 

Asian Development Bank, Sr. Unscd. Notes

 

2.00

 

1/22/2025

 

500,000

 

473,130

 

Asian Development Bank, Sr. Unscd. Notes

 

2.75

 

1/19/2028

 

90,000

 

83,144

 

Asian Development Bank, Sr. Unscd. Notes

 

3.88

 

9/28/2032

 

100,000

 

96,640

 

European Investment Bank, Sr. Unscd. Bonds

 

0.38

 

12/15/2025

 

200,000

 

176,158

 

European Investment Bank, Sr. Unscd. Bonds

 

1.63

 

10/9/2029

 

300,000

a 

253,324

 

European Investment Bank, Sr. Unscd. Bonds

 

1.63

 

3/14/2025

 

200,000

 

187,135

 

European Investment Bank, Sr. Unscd. Bonds

 

2.25

 

6/24/2024

 

160,000

a 

154,191

 

European Investment Bank, Sr. Unscd. Notes

 

0.38

 

3/26/2026

 

250,000

 

218,159

 

European Investment Bank, Sr. Unscd. Notes

 

1.88

 

2/10/2025

 

500,000

 

471,616

 

European Investment Bank, Sr. Unscd. Notes

 

2.38

 

5/24/2027

 

500,000

a 

459,753

 

Export Development Canada, Gov't Gtd. Bonds

 

2.63

 

2/21/2024

 

300,000

 

292,489

 

Export-Import Bank of Korea, Sr. Unscd. Bonds

 

4.00

 

1/14/2024

 

500,000

 

494,365

 

FMS Wertmanagement, Gov't Gtd. Notes

 

2.75

 

1/30/2024

 

200,000

 

195,456

 

Inter-American Development Bank, Sr. Unscd. Bonds

 

2.13

 

1/15/2025

 

1,000,000

 

949,311

 

Inter-American Development Bank, Sr. Unscd. Notes

 

0.25

 

11/15/2023

 

400,000

 

383,350

 

Inter-American Development Bank, Sr. Unscd. Notes

 

1.13

 

1/13/2031

 

200,000

 

156,649

 

Inter-American Development Bank, Sr. Unscd. Notes

 

1.75

 

3/14/2025

 

150,000

 

140,650

 

Inter-American Development Bank, Sr. Unscd. Notes

 

2.00

 

7/23/2026

 

80,000

 

73,193

 

Inter-American Development Bank, Sr. Unscd. Notes

 

3.13

 

9/18/2028

 

300,000

 

279,913

 

Inter-American Development Bank, Sr. Unscd. Notes

 

3.50

 

9/14/2029

 

100,000

 

94,966

 

International Bank for Reconstruction & Development, Sr. Unscd. Bonds

 

0.63

 

4/22/2025

 

390,000

 

354,475

 

34

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Supranational Bank - 1.7% (continued)

     

International Bank for Reconstruction & Development, Sr. Unscd. Bonds

 

1.25

 

2/10/2031

 

175,000

 

138,676

 

International Bank for Reconstruction & Development, Sr. Unscd. Bonds

 

2.50

 

7/29/2025

 

1,000,000

 

947,648

 

International Bank for Reconstruction & Development, Sr. Unscd. Notes

 

0.38

 

7/28/2025

 

300,000

 

267,994

 

International Bank for Reconstruction & Development, Sr. Unscd. Notes

 

0.88

 

5/14/2030

 

200,000

 

156,104

 

International Bank for Reconstruction & Development, Sr. Unscd. Notes

 

1.38

 

4/20/2028

 

300,000

 

256,378

 

International Bank for Reconstruction & Development, Sr. Unscd. Notes

 

1.63

 

1/15/2025

 

300,000

 

281,658

 

International Bank for Reconstruction & Development, Sr. Unscd. Notes

 

3.63

 

9/21/2029

 

100,000

 

96,053

 

International Finance Corp., Sr. Unscd. Notes

 

0.38

 

7/16/2025

 

200,000

 

179,066

 

International Finance Corp., Sr. Unscd. Notes

 

3.63

 

9/15/2025

 

100,000

 

97,500

 

Japan Bank for International Cooperation, Gov't Gtd. Bonds

 

1.88

 

7/21/2026

 

500,000

 

449,985

 

Japan Bank for International Cooperation, Gov't Gtd. Notes

 

2.00

 

10/17/2029

 

300,000

 

250,924

 

Japan Bank for International Cooperation, Gov't Gtd. Notes

 

2.75

 

1/21/2026

 

250,000

 

234,396

 

Nordic Investment Bank, Sr. Unscd. Notes

 

3.38

 

9/8/2027

 

200,000

 

191,962

 

The Asian Infrastructure Investment Bank, Sr. Unscd. Bonds

 

0.50

 

1/27/2026

 

250,000

 

218,162

 

The Asian Infrastructure Investment Bank, Sr. Unscd. Bonds

 

3.75

 

9/14/2027

 

100,000

 

96,488

 

The Asian Infrastructure Investment Bank, Sr. Unscd. Notes

 

0.50

 

5/28/2025

 

200,000

 

179,693

 

The Korea Development Bank, Sr. Unscd. Bonds

 

0.80

 

7/19/2026

 

300,000

 

258,626

 
 

10,913,211

 

Technology Hardware & Equipment - .8%

     

Amdocs Ltd., Sr. Unscd. Notes

 

2.54

 

6/15/2030

 

200,000

 

157,005

 

Apple Inc., Sr. Unscd. Notes

 

0.70

 

2/8/2026

 

230,000

 

201,559

 

Apple Inc., Sr. Unscd. Notes

 

1.13

 

5/11/2025

 

125,000

 

114,370

 

Apple Inc., Sr. Unscd. Notes

 

1.65

 

5/11/2030

 

100,000

 

80,085

 

35

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Technology Hardware & Equipment - .8% (continued)

     

Apple Inc., Sr. Unscd. Notes

 

1.65

 

2/8/2031

 

175,000

 

137,197

 

Apple Inc., Sr. Unscd. Notes

 

1.80

 

9/11/2024

 

135,000

 

128,225

 

Apple Inc., Sr. Unscd. Notes

 

2.20

 

9/11/2029

 

120,000

 

101,445

 

Apple Inc., Sr. Unscd. Notes

 

2.38

 

2/8/2041

 

80,000

 

53,649

 

Apple Inc., Sr. Unscd. Notes

 

2.65

 

5/11/2050

 

120,000

 

75,283

 

Apple Inc., Sr. Unscd. Notes

 

2.80

 

2/8/2061

 

215,000

 

127,853

 

Apple Inc., Sr. Unscd. Notes

 

2.95

 

9/11/2049

 

75,000

 

50,631

 

Apple Inc., Sr. Unscd. Notes

 

3.20

 

5/11/2027

 

200,000

 

187,448

 

Apple Inc., Sr. Unscd. Notes

 

3.35

 

8/8/2032

 

45,000

 

39,716

 

Apple Inc., Sr. Unscd. Notes

 

3.35

 

2/9/2027

 

500,000

 

474,650

 

Apple Inc., Sr. Unscd. Notes

 

3.45

 

5/6/2024

 

500,000

 

491,019

 

Apple Inc., Sr. Unscd. Notes

 

3.75

 

11/13/2047

 

90,000

 

70,919

 

Apple Inc., Sr. Unscd. Notes

 

4.10

 

8/8/2062

 

75,000

 

58,405

 

Apple Inc., Sr. Unscd. Notes

 

4.25

 

2/9/2047

 

300,000

 

258,400

 

Dell International LLC, Gtd. Notes

 

3.45

 

12/15/2051

 

45,000

b 

25,538

 

Dell International LLC, Sr. Unscd. Notes

 

6.02

 

6/15/2026

 

200,000

 

199,795

 

Dell International LLC, Sr. Unscd. Notes

 

8.35

 

7/15/2046

 

65,000

 

69,143

 

DXC Technology Co., Sr. Unscd. Notes

 

2.38

 

9/15/2028

 

300,000

 

247,115

 

Hewlett Packard Enterprise Co., Sr. Unscd. Notes

 

1.75

 

4/1/2026

 

200,000

 

177,160

 

Hewlett Packard Enterprise Co., Sr. Unscd. Notes

 

4.90

 

10/15/2025

 

250,000

 

245,883

 

HP Inc., Sr. Unscd. Notes

 

3.40

 

6/17/2030

 

200,000

 

162,840

 

International Business Machines Corp., Sr. Unscd. Notes

 

1.70

 

5/15/2027

 

100,000

 

85,955

 

International Business Machines Corp., Sr. Unscd. Notes

 

3.30

 

5/15/2026

 

250,000

 

234,150

 

International Business Machines Corp., Sr. Unscd. Notes

 

3.50

 

5/15/2029

 

220,000

 

197,116

 

International Business Machines Corp., Sr. Unscd. Notes

 

4.15

 

5/15/2039

 

105,000

 

85,626

 

International Business Machines Corp., Sr. Unscd. Notes

 

4.25

 

5/15/2049

 

160,000

 

124,462

 

Leidos Inc., Gtd. Notes

 

2.30

 

2/15/2031

 

200,000

 

147,697

 

NetApp Inc., Sr. Unscd. Notes

 

2.70

 

6/22/2030

 

200,000

 

160,725

 
 

4,971,064

 

Telecommunication Services - 1.1%

     

America Movil Sab De Cv, Gtd. Notes

 

6.38

 

3/1/2035

 

100,000

 

100,454

 

America Movil Sab De Cv, Sr. Unscd. Notes

 

4.38

 

4/22/2049

 

200,000

a 

156,515

 

AT&T Inc., Sr. Unscd. Notes

 

3.50

 

9/15/2053

 

615,000

 

395,397

 

AT&T Inc., Sr. Unscd. Notes

 

3.80

 

12/1/2057

 

300,000

 

198,333

 

36

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Telecommunication Services - 1.1% (continued)

     

AT&T Inc., Sr. Unscd. Notes

 

4.35

 

3/1/2029

 

360,000

 

334,912

 

AT&T Inc., Sr. Unscd. Notes

 

4.50

 

3/9/2048

 

341,000

 

264,142

 

AT&T Inc., Sr. Unscd. Notes

 

4.50

 

5/15/2035

 

500,000

 

431,586

 

AT&T Inc., Sr. Unscd. Notes

 

4.85

 

3/1/2039

 

110,000

 

94,575

 

British Telecommunications PLC, Sr. Unscd. Notes

 

9.63

 

12/15/2030

 

175,000

 

199,875

 

Cisco Systems Inc., Sr. Unscd. Notes

 

2.95

 

2/28/2026

 

250,000

 

236,361

 

Cisco Systems Inc., Sr. Unscd. Notes

 

5.50

 

1/15/2040

 

250,000

 

244,756

 

Corning Inc., Sr. Unscd. Notes

 

3.90

 

11/15/2049

 

300,000

 

205,458

 

Deutsche Telekom International Finance BV, Gtd. Bonds

 

8.75

 

6/15/2030

 

300,000

 

343,670

 

Orange SA, Sr. Unscd. Notes

 

9.00

 

3/1/2031

 

150,000

 

179,364

 

Rogers Communications Inc., Gtd. Bonds

 

7.50

 

8/15/2038

 

125,000

 

136,091

 

Telefonica Emisiones SA, Gtd. Notes

 

5.21

 

3/8/2047

 

150,000

 

113,056

 

Telefonica Emisiones SA, Gtd. Notes

 

7.05

 

6/20/2036

 

100,000

 

97,241

 

T-Mobile USA Inc., Gtd. Notes

 

5.65

 

1/15/2053

 

200,000

 

184,948

 

T-Mobile USA Inc., Gtd. Notes

 

5.80

 

9/15/2062

 

100,000

 

92,056

 

T-Mobile USA Inc., Sr. Unscd. Notes

 

2.05

 

2/15/2028

 

300,000

 

249,216

 

T-Mobile USA Inc., Sr. Unscd. Notes

 

3.50

 

4/15/2025

 

310,000

 

295,912

 

T-Mobile USA Inc., Sr. Unscd. Notes

 

3.60

 

11/15/2060

 

200,000

 

129,018

 

T-Mobile USA Inc., Sr. Unscd. Notes

 

4.50

 

4/15/2050

 

250,000

 

198,528

 

Verizon Communications Inc., Sr. Unscd. Notes

 

0.85

 

11/20/2025

 

200,000

 

175,812

 

Verizon Communications Inc., Sr. Unscd. Notes

 

1.75

 

1/20/2031

 

200,000

 

148,515

 

Verizon Communications Inc., Sr. Unscd. Notes

 

2.36

 

3/15/2032

 

125,000

 

94,771

 

Verizon Communications Inc., Sr. Unscd. Notes

 

2.88

 

11/20/2050

 

200,000

 

118,321

 

Verizon Communications Inc., Sr. Unscd. Notes

 

3.00

 

11/20/2060

 

500,000

 

279,858

 

Verizon Communications Inc., Sr. Unscd. Notes

 

3.70

 

3/22/2061

 

365,000

 

239,338

 

Verizon Communications Inc., Sr. Unscd. Notes

 

4.02

 

12/3/2029

 

627,000

 

565,667

 

Verizon Communications Inc., Sr. Unscd. Notes

 

4.33

 

9/21/2028

 

250,000

 

234,612

 

Vodafone Group PLC, Sr. Unscd. Notes

 

5.00

 

5/30/2038

 

60,000

 

51,057

 

Vodafone Group PLC, Sr. Unscd. Notes

 

5.13

 

6/19/2059

 

110,000

a 

85,342

 

Vodafone Group PLC, Sr. Unscd. Notes

 

5.25

 

5/30/2048

 

180,000

 

147,566

 

37

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Telecommunication Services - 1.1% (continued)

     

Vodafone Group PLC, Sr. Unscd. Notes

 

7.88

 

2/15/2030

 

125,000

 

135,833

 
 

7,158,156

 

Transportation - .3%

     

Burlington Northern Santa Fe LLC, Sr. Unscd. Debs.

 

4.55

 

9/1/2044

 

300,000

 

254,607

 

Burlington Northern Santa Fe LLC, Sr. Unscd. Debs.

 

6.15

 

5/1/2037

 

300,000

 

313,888

 

Burlington Northern Santa Fe LLC, Sr. Unscd. Debs.

 

7.00

 

12/15/2025

 

100,000

 

105,753

 

Canadian Pacific Railway Co., Gtd. Notes

 

6.13

 

9/15/2115

 

100,000

 

90,813

 

CSX Corp., Sr. Unscd. Notes

 

3.80

 

3/1/2028

 

200,000

 

186,879

 

CSX Corp., Sr. Unscd. Notes

 

4.30

 

3/1/2048

 

50,000

 

40,023

 

CSX Corp., Sr. Unscd. Notes

 

4.75

 

11/15/2048

 

100,000

 

85,110

 

FedEx Corp., Gtd. Notes

 

4.75

 

11/15/2045

 

200,000

 

158,496

 

Kansas Southern, Gtd. Notes

 

4.95

 

8/15/2045

 

150,000

 

127,502

 

Norfolk Southern Corp., Sr. Unscd. Notes

 

2.90

 

8/25/2051

 

300,000

 

181,284

 

Union Pacific Corp., Sr. Unscd. Notes

 

3.80

 

4/6/2071

 

55,000

 

37,279

 

Union Pacific Corp., Sr. Unscd. Notes

 

3.84

 

3/20/2060

 

243,000

 

174,035

 

Union Pacific Corp., Sr. Unscd. Notes

 

3.85

 

2/14/2072

 

50,000

a 

34,111

 

Union Pacific Corp., Sr. Unscd. Notes

 

3.95

 

9/10/2028

 

105,000

 

98,877

 

United Parcel Service Inc., Sr. Unscd. Notes

 

3.75

 

11/15/2047

 

80,000

 

61,915

 

United Parcel Service Inc., Sr. Unscd. Notes

 

5.30

 

4/1/2050

 

200,000

 

196,127

 
 

2,146,699

 

U.S. Government Agencies Collateralized Municipal-Backed Securities - .9%

     

Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates, Ser. K043, Cl. A2

 

3.06

 

12/25/2024

 

348,000

c 

334,837

 

Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates, Ser. K047, Cl. A2

 

3.33

 

5/25/2025

 

45,000

c 

43,362

 

Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates, Ser. K056, Cl. A2

 

2.53

 

5/25/2026

 

500,000

c 

463,112

 

Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates, Ser. K103, Cl. A2

 

2.65

 

11/25/2029

 

400,000

c 

347,732

 

38

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

U.S. Government Agencies Collateralized Municipal-Backed Securities - .9% (continued)

     

Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates, Ser. K104, Cl. A2

 

2.25

 

1/25/2030

 

400,000

c 

337,536

 

Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates, Ser. K106, Cl. A1

 

1.78

 

10/25/2029

 

291,411

c 

250,722

 

Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates, Ser. K112, Cl. A2

 

1.31

 

5/25/2030

 

200,000

c 

154,926

 

Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates, Ser. K126, Cl. A2

 

2.07

 

1/25/2031

 

400,000

c 

323,952

 

Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates, Ser. K-1514, Cl. A2

 

2.86

 

10/25/2034

 

400,000

c 

323,266

 

Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates, Ser. K-1516, Cl. A2

 

1.72

 

5/25/2035

 

400,000

c 

278,134

 

Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates, Ser. K-1521, CI. A2

 

2.18

 

8/25/2036

 

300,000

c 

215,226

 

Federal National Mortgage Association, Ser. 2017-M12, Cl. A2

 

3.06

 

6/25/2027

 

675,170

c 

628,040

 

Federal National Mortgage Association, Ser. 2018-M1, Cl. A2

 

2.99

 

12/25/2027

 

301,888

c 

277,591

 

Federal National Mortgage Association, Ser. 2018-M10, Cl. A2

 

3.36

 

7/25/2028

 

750,000

c 

700,124

 

Federal National Mortgage Association, Ser. 2019-M12, Cl. A2

 

2.89

 

6/25/2029

 

500,000

c 

445,583

 

Federal National Mortgage Association, Ser. 2020-M1, Cl. A2

 

2.44

 

10/25/2029

 

400,000

c 

343,387

 

Federal National Mortgage Association, Ser. 2020-M14, Cl. A2

 

1.78

 

5/25/2030

 

300,000

c 

245,150

 
 

5,712,680

 

U.S. Government Agencies Mortgage-Backed - 27.6%

     

Federal Home Loan Mortgage Corp.:

   

1.50%, 2/1/2036-3/1/2052

  

4,386,759

c 

3,439,347

 

2.00%, 8/1/2028-4/1/2052

  

14,910,075

c 

12,030,435

 

2.50%, 3/1/2028-5/1/2052

  

11,799,351

c 

9,944,741

 

39

 

STATEMENT OF INVESTMENTS (continued)

         
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

U.S. Government Agencies Mortgage-Backed - 27.6% (continued)

     

3.00%, 10/1/2026-3/1/2052

  

7,216,205

c 

6,370,161

 

3.50%, 11/1/2025-5/1/2052

  

4,351,618

c 

3,940,877

 

4.00%, 4/1/2024-7/1/2052

  

3,183,572

c 

2,971,584

 

4.25%, 8/1/2034, 1 Year U.S. Treasury Curve Rate T-Note Constant +2.25%

  

250

c,d 

248

 

4.50%, 5/1/2023-9/1/2052

  

1,909,793

c 

1,834,605

 

5.00%, 5/1/2023-2/1/2048

  

553,242

c 

553,260

 

5.50%, 2/1/2023-1/1/2039

  

221,542

c 

223,205

 

6.00%, 6/1/2028-7/1/2039

  

268,502

c 

275,094

 

6.50%, 4/1/2026-9/1/2037

  

61,443

c 

63,811

 

7.00%, 12/1/2024-9/1/2031

  

6,772

c 

6,948

 

7.50%, 6/1/2024-7/1/2030

  

1,417

c 

1,437

 

8.00%, 5/1/2026-10/1/2031

  

1,946

c 

2,010

 

8.50%, 6/1/2030

  

174

c 

182

 

Federal National Mortgage Association:

   

2.00%

  

250,000

c,e 

222,427

 

1.50%, 9/1/2035-9/1/2051

  

5,580,793

c 

4,418,543

 

1.50%

  

1,900,000

c,e 

1,611,405

 

2.00%, 7/1/2028-6/1/2052

  

21,422,614

c 

17,353,849

 

2.00%

  

17,575,000

c,e 

14,110,468

 

2.50%

  

7,400,000

c,e 

6,058,807

 

2.50%, 7/1/2027-5/1/2052

  

17,979,985

c 

15,079,004

 

3.00%

  

825,000

c,e 

717,073

 

3.00%, 10/1/2026-3/1/2052

  

14,234,210

c 

12,481,601

 

3.50%, 8/1/2025-6/1/2052

  

8,902,110

c 

8,059,513

 

3.50%

  

1,300,000

c,e 

1,147,398

 

4.00%, 7/1/2024-9/1/2052

  

5,418,840

c 

5,062,097

 

4.00%

  

2,050,000

c,e 

1,863,694

 

4.50%

  

2,400,000

c,e 

2,251,418

 

4.50%, 4/1/2023-4/1/2049

  

1,702,212

c 

1,642,066

 

5.00%

  

1,575,000

c,e 

1,518,588

 

5.00%, 5/1/2023-6/1/2049

  

794,255

c 

792,044

 

5.50%, 1/1/2032-12/1/2038

  

432,793

c 

437,169

 

6.00%, 5/1/2024-11/1/2038

  

545,955

c 

558,982

 

6.50%, 2/1/2028-10/1/2037

  

136,174

c 

141,160

 

7.00%, 8/1/2023-7/1/2032

  

15,520

c 

15,869

 

7.50%, 4/1/2026-6/1/2031

  

8,123

c 

8,243

 

8.00%, 5/1/2027-8/1/2030

  

1,370

c 

1,399

 

8.50%, 7/1/2030

  

122

c 

128

 

Government National Mortgage Association I:

   

2.50%, 2/15/2028-9/15/2046

  

105,317

 

91,718

 

40

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

U.S. Government Agencies Mortgage-Backed - 27.6% (continued)

     

3.00%, 9/15/2042-8/15/2045

  

519,574

 

461,910

 

3.50%, 2/15/2026-8/15/2045

  

371,907

 

342,245

 

4.00%, 2/15/2041-9/15/2045

  

418,149

 

395,157

 

4.50%, 3/15/2039-2/15/2041

  

401,514

 

391,290

 

5.00%, 7/15/2033-4/15/2040

  

572,308

 

572,715

 

5.50%, 2/15/2033-11/15/2038

  

212,156

 

219,026

 

6.00%, 1/15/2029-10/15/2036

  

74,443

 

77,450

 

6.50%, 2/15/2024-11/15/2033

  

24,911

 

25,690

 

7.00%, 10/15/2027-8/15/2032

  

23,676

 

24,224

 

7.50%, 12/15/2023-11/15/2030

  

10,416

 

10,419

 

8.00%, 8/15/2024-3/15/2032

  

3,849

 

4,041

 

8.25%, 6/15/2027

  

377

 

377

 

8.50%, 10/15/2026

  

1,649

 

1,650

 

Government National Mortgage Association II:

   

2.00%

  

4,300,000

e 

3,533,359

 

2.00%, 9/20/2050-5/20/2052

  

6,203,717

 

5,125,906

 

2.50%

  

2,600,000

e 

2,203,913

 

2.50%, 3/20/2027-7/20/2052

  

8,280,493

 

7,062,081

 

3.00%

  

125,000

e 

108,857

 

3.00%, 1/20/2028-5/20/2052

  

7,438,841

 

6,599,021

 

3.50%

  

125,000

e 

111,888

 

3.50%, 9/20/2028-9/20/2052

  

5,633,311

 

5,137,806

 

4.00%, 9/20/2043-9/20/2052

  

2,271,304

 

2,130,044

 

4.00%

  

925,000

e 

852,497

 

4.50%, 7/20/2041-6/20/2049

  

1,493,453

 

1,464,489

 

4.50%

  

325,000

e 

307,887

 

5.00%, 9/20/2040-2/20/2049

  

150,342

 

150,634

 

5.00%

  

150,000

e 

145,805

 

5.50%, 10/20/2031-6/20/2041

  

36,897

 

37,980

 

6.50%, 2/20/2028

  

172

 

175

 

8.50%, 7/20/2025

  

53

 

53

 
 

174,801,197

 

U.S. Government Agencies Obligations - 1.2%

     

Federal Farm Credit Bank Funding Corp., Unscd. Bonds

 

1.65

 

7/23/2035

 

200,000

 

131,431

 

Federal Farm Credit Bank Funding Corp., Unscd. Bonds

 

3.38

 

8/26/2024

 

400,000

 

391,006

 

Federal Home Loan Bank, Unscd. Bonds

 

2.75

 

6/28/2024

 

900,000

 

871,487

 

Federal Home Loan Bank, Unscd. Bonds

 

3.25

 

3/8/2024

 

750,000

 

735,230

 

Federal Home Loan Bank, Unscd. Bonds

 

3.38

 

12/8/2023

 

500,000

 

492,377

 

41

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

U.S. Government Agencies Obligations - 1.2% (continued)

     

Federal Home Loan Bank, Unscd. Bonds

 

5.50

 

7/15/2036

 

480,000

 

508,374

 

Federal Home Loan Mortgage Corp., Unscd. Notes

 

0.80

 

10/27/2026

 

125,000

c 

107,676

 

Federal Home Loan Mortgage Corp., Unscd. Notes

 

1.50

 

2/12/2025

 

500,000

a,c 

467,809

 

Federal National Mortgage Association, Unscd. Notes

 

0.38

 

8/25/2025

 

1,000,000

c 

891,770

 

Federal National Mortgage Association, Unscd. Notes

 

0.88

 

12/18/2026

 

325,000

c 

280,114

 

Federal National Mortgage Association, Unscd. Notes

 

1.63

 

10/15/2024

 

500,000

c 

472,510

 

Federal National Mortgage Association, Unscd. Notes

 

1.88

 

9/24/2026

 

1,000,000

c 

910,458

 

Federal National Mortgage Association, Unscd. Notes

 

6.25

 

5/15/2029

 

540,000

c 

596,791

 

Tennessee Valley Authority, Sr. Unscd. Bonds

 

5.25

 

9/15/2039

 

700,000

 

701,028

 

Tennessee Valley Authority, Sr. Unscd. Bonds

 

6.15

 

1/15/2038

 

165,000

 

183,428

 
 

7,741,489

 

U.S. Treasury Securities - 40.8%

     

U.S. Treasury Bonds

 

1.13

 

5/15/2040

 

2,640,000

 

1,577,400

 

U.S. Treasury Bonds

 

1.25

 

5/15/2050

 

1,706,000

 

879,690

 

U.S. Treasury Bonds

 

1.38

 

8/15/2050

 

1,595,000

 

850,895

 

U.S. Treasury Bonds

 

1.63

 

11/15/2050

 

2,915,000

 

1,668,154

 

U.S. Treasury Bonds

 

1.75

 

8/15/2041

 

900,000

a 

587,812

 

U.S. Treasury Bonds

 

1.88

 

2/15/2041

 

580,000

 

392,350

 

U.S. Treasury Bonds

 

1.88

 

2/15/2051

 

660,000

 

404,340

 

U.S. Treasury Bonds

 

1.88

 

11/15/2051

 

2,845,000

 

1,734,172

 

U.S. Treasury Bonds

 

2.00

 

2/15/2050

 

1,145,000

 

729,088

 

U.S. Treasury Bonds

 

2.00

 

8/15/2051

 

2,190,000

 

1,380,470

 

U.S. Treasury Bonds

 

2.00

 

11/15/2041

 

1,595,000

 

1,088,089

 

U.S. Treasury Bonds

 

2.25

 

8/15/2049

 

1,525,000

 

1,037,506

 

U.S. Treasury Bonds

 

2.25

 

2/15/2052

 

775,000

 

519,977

 

U.S. Treasury Bonds

 

2.25

 

8/15/2046

 

875,000

 

592,710

 

U.S. Treasury Bonds

 

2.38

 

5/15/2051

 

3,275,000

 

2,269,153

 

U.S. Treasury Bonds

 

2.38

 

11/15/2049

 

640,000

a 

447,725

 

U.S. Treasury Bonds

 

2.50

 

2/15/2045

 

460,000

 

331,308

 

U.S. Treasury Bonds

 

2.50

 

5/15/2046

 

1,230,000

 

878,537

 

U.S. Treasury Bonds

 

2.75

 

11/15/2047

 

1,445,000

 

1,085,246

 

U.S. Treasury Bonds

 

2.75

 

8/15/2047

 

1,375,000

 

1,032,056

 

U.S. Treasury Bonds

 

2.75

 

11/15/2042

 

1,297,000

 

1,000,210

 

U.S. Treasury Bonds

 

2.88

 

11/15/2046

 

76,000

 

58,513

 

42

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

U.S. Treasury Securities - 40.8% (continued)

     

U.S. Treasury Bonds

 

2.88

 

5/15/2052

 

590,000

 

458,080

 

U.S. Treasury Bonds

 

2.88

 

5/15/2049

 

1,461,000

 

1,138,581

 

U.S. Treasury Bonds

 

2.88

 

5/15/2043

 

1,857,000

 

1,457,020

 

U.S. Treasury Bonds

 

3.00

 

8/15/2052

 

560,000

 

448,612

 

U.S. Treasury Bonds

 

3.00

 

2/15/2047

 

1,490,000

 

1,172,764

 

U.S. Treasury Bonds

 

3.00

 

2/15/2049

 

1,295,000

 

1,034,002

 

U.S. Treasury Bonds

 

3.00

 

8/15/2048

 

875,000

a 

695,232

 

U.S. Treasury Bonds

 

3.00

 

2/15/2048

 

840,000

 

663,633

 

U.S. Treasury Bonds

 

3.00

 

5/15/2042

 

55,000

 

44,608

 

U.S. Treasury Bonds

 

3.00

 

11/15/2044

 

1,592,000

 

1,260,261

 

U.S. Treasury Bonds

 

3.13

 

2/15/2043

 

130,000

 

106,661

 

U.S. Treasury Bonds

 

3.13

 

5/15/2048

 

1,365,000

 

1,108,076

 

U.S. Treasury Bonds

 

3.13

 

8/15/2044

 

1,956,000

 

1,585,124

 

U.S. Treasury Bonds

 

3.13

 

11/15/2041

 

145,000

 

120,407

 

U.S. Treasury Bonds

 

3.13

 

2/15/2042

 

195,000

 

162,018

 

U.S. Treasury Bonds

 

3.25

 

5/15/2042

 

460,000

 

389,059

 

U.S. Treasury Bonds

 

3.38

 

8/15/2042

 

585,000

a 

504,837

 

U.S. Treasury Bonds

 

3.38

 

11/15/2048

 

1,515,000

 

1,294,999

 

U.S. Treasury Bonds

 

3.38

 

5/15/2044

 

550,000

 

465,480

 

U.S. Treasury Bonds

 

3.50

 

2/15/2039

 

750,000

 

681,577

 

U.S. Treasury Bonds

 

3.63

 

2/15/2044

 

1,968,000

 

1,738,567

 

U.S. Treasury Bonds

 

3.63

 

8/15/2043

 

1,860,000

a 

1,651,041

 

U.S. Treasury Bonds

 

3.75

 

8/15/2041

 

1,115,000

 

1,022,947

 

U.S. Treasury Bonds

 

3.75

 

11/15/2043

 

1,485,000

 

1,341,837

 

U.S. Treasury Bonds

 

3.88

 

8/15/2040

 

50,000

 

47,020

 

U.S. Treasury Bonds

 

4.25

 

11/15/2040

 

465,000

 

459,296

 

U.S. Treasury Bonds

 

4.25

 

5/15/2039

 

890,000

 

886,802

 

U.S. Treasury Bonds

 

4.38

 

5/15/2041

 

70,000

 

70,163

 

U.S. Treasury Bonds

 

4.38

 

2/15/2038

 

543,000

 

552,227

 

U.S. Treasury Bonds

 

4.38

 

11/15/2039

 

365,000

 

368,251

 

U.S. Treasury Bonds

 

4.50

 

5/15/2038

 

210,000

 

216,419

 

U.S. Treasury Bonds

 

4.75

 

2/15/2041

 

1,185,000

 

1,247,467

 

U.S. Treasury Bonds

 

5.25

 

2/15/2029

 

175,000

 

184,071

 

U.S. Treasury Bonds

 

5.25

 

11/15/2028

 

335,000

 

351,423

 

U.S. Treasury Bonds

 

6.13

 

11/15/2027

 

1,385,000

 

1,497,856

 

U.S. Treasury Bonds

 

6.75

 

8/15/2026

 

215,000

 

232,729

 

U.S. Treasury Bonds

 

7.50

 

11/15/2024

 

170,000

 

179,851

 

U.S. Treasury Notes

 

0.13

 

2/15/2024

 

3,000,000

 

2,832,305

 

U.S. Treasury Notes

 

0.13

 

1/15/2024

 

210,000

 

198,934

 

U.S. Treasury Notes

 

0.25

 

3/15/2024

 

2,915,000

 

2,746,306

 

U.S. Treasury Notes

 

0.25

 

7/31/2025

 

390,000

 

348,319

 

U.S. Treasury Notes

 

0.25

 

10/31/2025

 

750,000

 

662,930

 

U.S. Treasury Notes

 

0.25

 

9/30/2025

 

965,000

 

856,814

 

43

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

U.S. Treasury Securities - 40.8% (continued)

     

U.S. Treasury Notes

 

0.25

 

8/31/2025

 

1,500,000

 

1,334,473

 

U.S. Treasury Notes

 

0.38

 

4/30/2025

 

1,143,000

 

1,035,129

 

U.S. Treasury Notes

 

0.38

 

12/31/2025

 

1,450,000

 

1,279,285

 

U.S. Treasury Notes

 

0.38

 

1/31/2026

 

1,440,000

 

1,265,231

 

U.S. Treasury Notes

 

0.38

 

7/31/2027

 

1,750,000

 

1,461,182

 

U.S. Treasury Notes

 

0.38

 

9/30/2027

 

1,800,000

 

1,492,594

 

U.S. Treasury Notes

 

0.38

 

7/15/2024

 

600,000

a 

558,867

 

U.S. Treasury Notes

 

0.50

 

2/28/2026

 

680,000

 

598,187

 

U.S. Treasury Notes

 

0.50

 

6/30/2027

 

645,000

 

542,934

 

U.S. Treasury Notes

 

0.63

 

7/31/2026

 

1,595,000

 

1,389,955

 

U.S. Treasury Notes

 

0.63

 

11/30/2027

 

2,500,000

 

2,088,477

 

U.S. Treasury Notes

 

0.63

 

8/15/2030

 

3,126,000

 

2,415,079

 

U.S. Treasury Notes

 

0.63

 

5/15/2030

 

2,460,000

 

1,912,266

 

U.S. Treasury Notes

 

0.63

 

12/31/2027

 

350,000

 

291,580

 

U.S. Treasury Notes

 

0.63

 

3/31/2027

 

480,000

 

409,819

 

U.S. Treasury Notes

 

0.63

 

10/15/2024

 

2,000,000

 

1,856,445

 

U.S. Treasury Notes

 

0.75

 

3/31/2026

 

1,430,000

 

1,265,662

 

U.S. Treasury Notes

 

0.75

 

12/31/2023

 

2,870,000

 

2,744,101

 

U.S. Treasury Notes

 

0.75

 

1/31/2028

 

305,000

a 

255,116

 

U.S. Treasury Notes

 

0.75

 

8/31/2026

 

2,205,000

 

1,925,757

 

U.S. Treasury Notes

 

0.75

 

11/15/2024

 

2,350,000

 

2,178,982

 

U.S. Treasury Notes

 

0.88

 

11/15/2030

 

4,025,000

 

3,166,386

 

U.S. Treasury Notes

 

0.88

 

9/30/2026

 

2,950,000

 

2,583,555

 

U.S. Treasury Notes

 

0.88

 

6/30/2026

 

1,505,000

 

1,327,633

 

U.S. Treasury Notes

 

1.00

 

12/15/2024

 

1,800,000

 

1,674,984

 

U.S. Treasury Notes

 

1.00

 

7/31/2028

 

2,745,000

 

2,292,826

 

U.S. Treasury Notes

 

1.13

 

2/15/2031

 

4,165,000

a 

3,331,349

 

U.S. Treasury Notes

 

1.13

 

2/29/2028

 

2,825,000

 

2,405,002

 

U.S. Treasury Notes

 

1.13

 

10/31/2026

 

3,000,000

 

2,647,266

 

U.S. Treasury Notes

 

1.13

 

8/31/2028

 

1,750,000

 

1,468,701

 

U.S. Treasury Notes

 

1.25

 

8/31/2024

 

1,975,000

a 

1,860,820

 

U.S. Treasury Notes

 

1.25

 

11/30/2026

 

2,105,000

 

1,863,912

 

U.S. Treasury Notes

 

1.25

 

12/31/2026

 

2,180,000

 

1,926,405

 

U.S. Treasury Notes

 

1.25

 

4/30/2028

 

2,250,000

 

1,919,795

 

U.S. Treasury Notes

 

1.25

 

3/31/2028

 

2,455,000

 

2,099,217

 

U.S. Treasury Notes

 

1.25

 

8/15/2031

 

4,450,000

 

3,537,576

 

U.S. Treasury Notes

 

1.25

 

5/31/2028

 

2,325,000

 

1,980,609

 

U.S. Treasury Notes

 

1.38

 

11/15/2031

 

2,090,000

 

1,667,918

 

U.S. Treasury Notes

 

1.38

 

10/31/2028

 

2,550,000

 

2,164,711

 

U.S. Treasury Notes

 

1.50

 

2/15/2030

 

905,000

 

758,397

 

U.S. Treasury Notes

 

1.50

 

1/31/2027

 

425,000

 

378,831

 

U.S. Treasury Notes

 

1.50

 

11/30/2024

 

900,000

 

846,668

 

U.S. Treasury Notes

 

1.50

 

10/31/2024

 

1,300,000

 

1,226,012

 

44

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

U.S. Treasury Securities - 40.8% (continued)

     

U.S. Treasury Notes

 

1.50

 

11/30/2028

 

3,295,000

 

2,814,007

 

U.S. Treasury Notes

 

1.50

 

2/29/2024

 

1,610,000

a 

1,545,789

 

U.S. Treasury Notes

 

1.50

 

9/30/2024

 

1,750,000

a 

1,653,955

 

U.S. Treasury Notes

 

1.63

 

8/15/2029

 

1,855,000

 

1,581,460

 

U.S. Treasury Notes

 

1.63

 

5/15/2026

 

2,030,000

 

1,847,617

 

U.S. Treasury Notes

 

1.63

 

5/15/2031

 

4,225,000

 

3,492,227

 

U.S. Treasury Notes

 

1.63

 

11/30/2026

 

915,000

 

823,357

 

U.S. Treasury Notes

 

1.63

 

9/30/2026

 

239,000

a 

216,006

 

U.S. Treasury Notes

 

1.75

 

3/15/2025

 

860,000

 

808,030

 

U.S. Treasury Notes

 

1.75

 

6/30/2024

 

1,465,000

 

1,398,331

 

U.S. Treasury Notes

 

1.75

 

7/31/2024

 

2,340,000

a 

2,228,759

 

U.S. Treasury Notes

 

1.88

 

7/31/2026

 

1,535,000

 

1,403,686

 

U.S. Treasury Notes

 

1.88

 

8/31/2024

 

750,000

 

714,580

 

U.S. Treasury Notes

 

1.88

 

2/28/2027

 

2,640,000

 

2,388,891

 

U.S. Treasury Notes

 

1.88

 

6/30/2026

 

1,996,000

 

1,829,303

 

U.S. Treasury Notes

 

1.88

 

2/15/2032

 

3,390,000

 

2,819,527

 

U.S. Treasury Notes

 

2.00

 

8/15/2025

 

1,988,000

 

1,860,877

 

U.S. Treasury Notes

 

2.00

 

4/30/2024

 

1,585,000

 

1,524,510

 

U.S. Treasury Notes

 

2.00

 

11/15/2026

 

2,015,000

a 

1,840,734

 

U.S. Treasury Notes

 

2.00

 

6/30/2024

 

1,330,000

 

1,274,774

 

U.S. Treasury Notes

 

2.00

 

5/31/2024

 

1,650,000

 

1,584,193

 

U.S. Treasury Notes

 

2.00

 

2/15/2025

 

3,000,000

 

2,839,102

 

U.S. Treasury Notes

 

2.13

 

9/30/2024

 

765,000

 

731,770

 

U.S. Treasury Notes

 

2.13

 

5/31/2026

 

1,350,000

 

1,249,541

 

U.S. Treasury Notes

 

2.13

 

11/30/2024

 

2,020,000

 

1,924,208

 

U.S. Treasury Notes

 

2.13

 

11/30/2023

 

1,850,000

a 

1,801,604

 

U.S. Treasury Notes

 

2.13

 

5/15/2025

 

2,435,000

 

2,298,412

 

U.S. Treasury Notes

 

2.13

 

7/31/2024

 

1,345,000

 

1,289,361

 

U.S. Treasury Notes

 

2.13

 

3/31/2024

 

2,144,000

 

2,071,431

 

U.S. Treasury Notes

 

2.13

 

2/29/2024

 

2,280,000

 

2,206,791

 

U.S. Treasury Notes

 

2.25

 

4/30/2024

 

2,309,000

a 

2,229,448

 

U.S. Treasury Notes

 

2.25

 

3/31/2026

 

2,300,000

a 

2,144,750

 

U.S. Treasury Notes

 

2.25

 

11/15/2027

 

2,530,000

 

2,299,632

 

U.S. Treasury Notes

 

2.25

 

11/15/2024

 

2,325,000

 

2,224,008

 

U.S. Treasury Notes

 

2.25

 

2/15/2027

 

1,725,000

 

1,585,787

 

U.S. Treasury Notes

 

2.25

 

8/15/2027

 

2,345,000

a 

2,140,728

 

U.S. Treasury Notes

 

2.25

 

3/31/2024

 

2,120,000

 

2,050,686

 

U.S. Treasury Notes

 

2.25

 

11/15/2025

 

2,630,000

 

2,467,371

 

U.S. Treasury Notes

 

2.25

 

12/31/2023

 

1,430,000

 

1,391,904

 

U.S. Treasury Notes

 

2.25

 

1/31/2024

 

345,000

 

335,068

 

U.S. Treasury Notes

 

2.38

 

5/15/2027

 

2,090,000

 

1,925,004

 

U.S. Treasury Notes

 

2.38

 

8/15/2024

 

1,520,000

 

1,462,050

 

U.S. Treasury Notes

 

2.38

 

4/30/2026

 

196,200

 

183,531

 

45

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

U.S. Treasury Securities - 40.8% (continued)

     

U.S. Treasury Notes

 

2.38

 

5/15/2029

 

835,000

 

747,651

 

U.S. Treasury Notes

 

2.50

 

1/31/2025

 

1,745,000

 

1,671,042

 

U.S. Treasury Notes

 

2.50

 

4/30/2024

 

1,250,000

 

1,211,621

 

U.S. Treasury Notes

 

2.50

 

3/31/2027

 

1,500,000

 

1,392,012

 

U.S. Treasury Notes

 

2.50

 

5/15/2024

 

2,900,000

a 

2,808,016

 

U.S. Treasury Notes

 

2.50

 

1/31/2024

 

1,290,000

 

1,256,843

 

U.S. Treasury Notes

 

2.50

 

5/31/2024

 

1,265,000

 

1,224,209

 

U.S. Treasury Notes

 

2.63

 

12/31/2023

 

1,420,000

a 

1,388,827

 

U.S. Treasury Notes

 

2.63

 

2/15/2029

 

2,000,000

 

1,822,031

 

U.S. Treasury Notes

 

2.63

 

4/15/2025

 

1,095,000

 

1,048,676

 

U.S. Treasury Notes

 

2.63

 

5/31/2027

 

1,290,000

 

1,202,623

 

U.S. Treasury Notes

 

2.63

 

7/31/2029

 

560,000

 

508,517

 

U.S. Treasury Notes

 

2.75

 

5/15/2025

 

2,000,000

 

1,918,281

 

U.S. Treasury Notes

 

2.75

 

4/30/2027

 

965,000

 

904,461

 

U.S. Treasury Notes

 

2.75

 

8/15/2032

 

1,540,000

a 

1,378,300

 

U.S. Treasury Notes

 

2.75

 

7/31/2027

 

905,000

 

846,140

 

U.S. Treasury Notes

 

2.75

 

11/15/2023

 

200,000

a 

196,166

 

U.S. Treasury Notes

 

2.75

 

2/15/2024

 

1,175,000

 

1,147,140

 

U.S. Treasury Notes

 

2.88

 

6/15/2025

 

1,670,000

 

1,605,548

 

U.S. Treasury Notes

 

2.88

 

5/31/2025

 

810,000

 

778,549

 

U.S. Treasury Notes

 

2.88

 

5/15/2028

 

2,111,000

a 

1,965,456

 

U.S. Treasury Notes

 

2.88

 

7/31/2025

 

1,631,000

a 

1,565,250

 

U.S. Treasury Notes

 

2.88

 

4/30/2029

 

2,600,000

 

2,401,648

 

U.S. Treasury Notes

 

2.88

 

5/15/2032

 

2,510,000

 

2,274,687

 

U.S. Treasury Notes

 

3.00

 

7/31/2024

 

1,740,000

a 

1,693,815

 

U.S. Treasury Notes

 

3.00

 

7/15/2025

 

480,000

a 

462,366

 

U.S. Treasury Notes

 

3.00

 

6/30/2024

 

1,220,000

a 

1,188,356

 

U.S. Treasury Notes

 

3.13

 

11/15/2028

 

2,200,000

a 

2,068,172

 

U.S. Treasury Notes

 

3.13

 

8/31/2027

 

2,100,000

 

1,999,102

 

U.S. Treasury Notes

 

3.13

 

8/15/2025

 

1,950,000

a 

1,882,969

 

U.S. Treasury Notes

 

3.25

 

6/30/2029

 

2,200,000

 

2,077,797

 

U.S. Treasury Notes

 

3.25

 

8/31/2024

 

1,170,000

a 

1,143,446

 

U.S. Treasury Notes

 

3.25

 

6/30/2027

 

2,050,000

 

1,961,914

 

U.S. Treasury Notes

 

3.50

 

9/15/2025

 

1,090,000

a 

1,062,665

 

U.S. Treasury Notes

 

3.88

 

9/30/2029

 

860,000

 

844,816

 

U.S. Treasury Notes

 

4.00

 

10/31/2029

 

1,395,000

 

1,382,031

 

U.S. Treasury Notes

 

4.13

 

10/31/2027

 

1,605,000

 

1,596,724

 

U.S. Treasury Notes

 

4.13

 

9/30/2027

 

1,170,000

a 

1,163,739

 

U.S. Treasury Notes

 

4.25

 

9/30/2024

 

1,145,000

a 

1,139,275

 

U.S. Treasury Notes

 

4.25

 

10/15/2025

 

1,525,000

 

1,517,018

 

U.S. Treasury Notes

 

4.38

 

10/31/2024

 

1,580,000

 

1,576,791

 
 

258,987,191

 

46

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Utilities - 1.9%

     

AEP Texas Inc., Sr. Unscd. Notes, Ser. H

 

3.45

 

1/15/2050

 

200,000

 

131,679

 

Alabama Power Co., Sr. Unscd. Notes

 

3.13

 

7/15/2051

 

150,000

 

96,833

 

Alabama Power Co., Sr. Unscd. Notes, Ser. B

 

3.70

 

12/1/2047

 

100,000

 

71,746

 

Ameren Illinois Co., First Mortgage Bonds

 

1.55

 

11/15/2030

 

200,000

 

151,742

 

Ameren Illinois Co., First Mortgage Bonds

 

4.50

 

3/15/2049

 

250,000

 

206,575

 

American Water Capital Corp., Sr. Unscd. Notes

 

3.75

 

9/1/2047

 

110,000

 

79,875

 

American Water Capital Corp., Sr. Unscd. Notes

 

3.85

 

3/1/2024

 

250,000

 

245,606

 

Arizona Public Service Co., Sr. Unscd. Notes

 

4.25

 

3/1/2049

 

250,000

 

181,786

 

Atmos Energy Corp., Sr. Unscd. Notes

 

1.50

 

1/15/2031

 

300,000

 

223,979

 

Berkshire Hathaway Energy Co., Sr. Unscd. Notes

 

3.80

 

7/15/2048

 

200,000

 

144,119

 

Berkshire Hathaway Energy Co., Sr. Unscd. Notes

 

5.15

 

11/15/2043

 

250,000

 

221,645

 

Commonwealth Edison Co., First Mortgage Bonds

 

4.00

 

3/1/2049

 

250,000

 

188,006

 

Consolidated Edison Company of New York Inc., Sr. Unscd. Debs., Ser. 06-B

 

6.20

 

6/15/2036

 

200,000

 

202,193

 

Consolidated Edison Inc., Sr. Unscd. Notes, Ser. A

 

0.65

 

12/1/2023

 

200,000

 

190,914

 

Constellation Energy Generation LLC, Sr. Unscd. Notes

 

6.25

 

10/1/2039

 

200,000

 

192,451

 

Consumers Energy Co., First Mortgage Bonds

 

2.65

 

8/15/2052

 

100,000

 

59,096

 

Dominion Energy Inc., Sr. Unscd. Notes, Ser. A

 

1.45

 

4/15/2026

 

200,000

 

174,779

 

Dominion Energy Inc., Sr. Unscd. Notes, Ser. C

 

3.38

 

4/1/2030

 

200,000

 

171,839

 

Dominion Energy Inc., Sr. Unscd. Notes, Ser. E

 

6.30

 

3/15/2033

 

100,000

 

101,545

 

DTE Electric Co., First Mortgage Bonds

 

2.95

 

3/1/2050

 

250,000

 

159,674

 

DTE Electric Co., First Mortgage Bonds, Ser. C

 

2.63

 

3/1/2031

 

250,000

 

204,981

 

Duke Energy Carolinas LLC, First Mortgage Bonds

 

2.45

 

2/1/2030

 

200,000

 

165,337

 

Duke Energy Carolinas LLC, First Mortgage Bonds

 

3.20

 

8/15/2049

 

200,000

 

132,159

 

Duke Energy Corp., Sr. Unscd. Notes

 

3.75

 

4/15/2024

 

250,000

 

245,370

 

47

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Utilities - 1.9% (continued)

     

Duke Energy Corp., Sr. Unscd. Notes

 

4.50

 

8/15/2032

 

200,000

 

180,493

 

Duke Energy Florida LLC, First Mortgage Bonds

 

6.40

 

6/15/2038

 

150,000

 

155,734

 

Emera US Finance LP, Gtd. Notes

 

4.75

 

6/15/2046

 

100,000

 

74,341

 

Entergy Louisiana LLC, First Mortgage Bonds

 

1.60

 

12/15/2030

 

200,000

 

149,069

 

Evergy Kansas Central Inc., First Mortgage Bonds

 

3.45

 

4/15/2050

 

150,000

 

101,487

 

Florida Power & Light Co., First Mortgage Bonds

 

3.70

 

12/1/2047

 

50,000

 

37,167

 

Florida Power & Light Co., First Mortgage Bonds

 

3.99

 

3/1/2049

 

200,000

 

155,808

 

Florida Power & Light Co., First Mortgage Bonds

 

4.05

 

10/1/2044

 

200,000

 

158,241

 

Georgia Power Co., Sr. Unscd. Notes

 

3.25

 

3/30/2027

 

250,000

 

226,016

 

Hydro-Quebec, Gov't Gtd. Debs., Ser. HK

 

9.38

 

4/15/2030

 

20,000

 

25,422

 

Idaho Power Co., First Mortgage Bonds, Ser. K

 

4.20

 

3/1/2048

 

217,000

 

168,432

 

Indiana Michigan Power Co., Sr. Unscd. Notes

 

6.05

 

3/15/2037

 

300,000

 

296,074

 

Interstate Power & Light Co., Sr. Unscd. Debs.

 

3.70

 

9/15/2046

 

150,000

 

104,293

 

Interstate Power & Light Co., Sr. Unscd. Notes

 

4.10

 

9/26/2028

 

150,000

 

140,667

 

National Rural Utilities Cooperative Finance Corp., Scd. Notes

 

4.15

 

12/15/2032

 

200,000

 

179,726

 

NextEra Energy Capital Holdings Inc., Gtd. Debs.

 

5.65

 

5/1/2079

 

300,000

 

253,728

 

NextEra Energy Capital Holdings Inc., Gtd. Notes

 

4.26

 

9/1/2024

 

200,000

 

196,194

 

NiSource Inc., Sr. Unscd. Notes

 

0.95

 

8/15/2025

 

500,000

 

443,050

 

NiSource Inc., Sr. Unscd. Notes

 

1.70

 

2/15/2031

 

500,000

 

366,760

 

Oncor Electric Delivery Co., Sr. Scd. Notes

 

4.95

 

9/15/2052

 

200,000

b 

179,656

 

Oncor Electric Delivery Co., Sr. Scd. Notes

 

5.75

 

3/15/2029

 

170,000

 

172,827

 

Pacific Gas & Electric Co., First Mortgage Bonds

 

3.15

 

1/1/2026

 

310,000

 

279,486

 

Pacific Gas & Electric Co., First Mortgage Bonds

 

4.50

 

7/1/2040

 

215,000

 

160,709

 

Pacific Gas & Electric Co., First Mortgage Bonds

 

4.95

 

7/1/2050

 

245,000

 

183,131

 

PacifiCorp, First Mortgage Bonds

 

4.15

 

2/15/2050

 

300,000

 

229,334

 

PECO Energy Co., First Mortgage Bonds

 

2.85

 

9/15/2051

 

200,000

 

123,044

 

48

 

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Utilities - 1.9% (continued)

     

PG&E Wildfire Recovery Funding LLC, Sr. Scd. Bonds, Ser. A2

 

4.72

 

6/1/2037

 

100,000

 

92,516

 

PG&E Wildfire Recovery Funding LLC, Sr. Scd. Bonds, Ser. A4

 

5.21

 

12/1/2047

 

100,000

 

93,214

 

PPL Electric Utilities Corp., First Mortgage Bonds

 

3.00

 

10/1/2049

 

100,000

 

63,841

 

PPL Electric Utilities Corp., First Mortgage Bonds

 

4.75

 

7/15/2043

 

200,000

 

171,678

 

Progress Energy Inc., Sr. Unscd. Notes

 

7.75

 

3/1/2031

 

280,000

 

307,618

 

Public Service Enterprise Group Inc., Sr. Unscd. Notes

 

0.80

 

8/15/2025

 

150,000

 

131,701

 

Public Service Enterprise Group Inc., Sr. Unscd. Notes

 

1.60

 

8/15/2030

 

200,000

 

148,521

 

Puget Sound Energy Inc., Sr. Scd. Notes

 

3.25

 

9/15/2049

 

150,000

 

96,970

 

San Diego Gas & Electric Co., First Mortgage Bonds, Ser. UUU

 

3.32

 

4/15/2050

 

100,000

 

66,903

 

San Diego Gas & Electric Co., Sr. Scd. Bonds, Ser. VVV

 

1.70

 

10/1/2030

 

100,000

 

76,705

 

Sempra Energy, Sr. Unscd. Notes

 

4.00

 

2/1/2048

 

50,000

 

35,759

 

Southern California Edison Co., First Mortgage Bonds

 

3.65

 

2/1/2050

 

300,000

 

201,158

 

Southern California Edison Co., First Mortgage Notes, Ser. 08-A

 

5.95

 

2/1/2038

 

70,000

 

66,383

 

Southern California Edison Co., Sr. Unscd. Notes

 

6.65

 

4/1/2029

 

200,000

 

200,706

 

Southern Co. Gas Capital Corp., Gtd. Notes, Ser. 21A

 

3.15

 

9/30/2051

 

200,000

 

121,241

 

Southernwestern Public Service Co., First Mortgage Bonds

 

3.40

 

8/15/2046

 

350,000

 

239,856

 

Southwestern Electric Power Co., Sr. Unscd. Notes, Ser. M

 

4.10

 

9/15/2028

 

150,000

 

137,349

 

Tampa Electric Co., Sr. Unscd. Notes

 

3.88

 

7/12/2024

 

100,000

 

97,467

 

Tampa Electric Co., Sr. Unscd. Notes

 

4.35

 

5/15/2044

 

250,000

 

196,649

 

Tucson Electric Power Co., Sr. Unscd. Notes

 

4.00

 

6/15/2050

 

250,000

 

182,048

 

Washington Gas Light Co., Sr. Unscd. Notes, Ser. K

 

3.80

 

9/15/2046

 

150,000

 

109,248

 

WEC Energy Group Inc., Sr. Unscd. Notes

 

5.15

 

10/1/2027

 

200,000

 

196,993

 

Wisconsin Electric Power Co., Sr. Unscd. Notes

 

4.75

 

9/30/2032

 

200,000

 

190,420

 

49

 

STATEMENT OF INVESTMENTS (continued)

          
 

Description

Coupon
Rate (%)

 

Maturity

Date

 

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes - 99.2% (continued)

     

Utilities - 1.9% (continued)

     

Xcel Energy Inc., Sr. Unscd. Notes

 

6.50

 

7/1/2036

 

200,000

 

206,373

 
 

12,116,135

 

Total Bonds and Notes
(cost $711,795,910)

 

629,482,164

 
 

1-Day
Yield (%)

   

Shares

 

  

Investment Companies - 6.2%

     

Registered Investment Companies - 6.2%

     

Dreyfus Institutional Preferred Government Plus Money Market Fund, Institutional Shares
(cost $39,615,011)

 

3.23

   

39,615,011

f 

39,615,011

 
      

 

  

Investment of Cash Collateral for Securities Loaned - .9%

     

Registered Investment Companies - .9%

     

Dreyfus Institutional Preferred Government Plus Money Market Fund, SL Shares
(cost $5,463,708)

 

3.23

   

5,463,708

f 

5,463,708

 

Total Investments (cost $756,874,629)

 

106.3%

674,560,883

 

Liabilities, Less Cash and Receivables

 

(6.3%)

(39,993,749)

 

Net Assets

 

100.0%

634,567,134

 

a Security, or portion thereof, on loan. At October 31, 2022, the value of the fund’s securities on loan was $48,550,037 and the value of the collateral was $52,144,513, consisting of cash collateral of $5,463,708 and U.S. Government & Agency securities valued at $46,680,805. In addition, the value of collateral may include pending sales that are also on loan.

b Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2022, these securities were valued at $1,583,536 or .25% of net assets.

c The Federal Housing Finance Agency (“FHFA”) placed the Federal Home Loan Mortgage Corporation and Federal National Mortgage Association into conservatorship with FHFA as the conservator. As such, the FHFA oversees the continuing affairs of these companies.

d Variable rate security—interest rate resets periodically and rate shown is the interest rate in effect at period end. Security description also includes the reference rate and spread if published and available.

e Purchased on a forward commitment basis.

f Investment in affiliated issuer. The investment objective of this investment company is publicly available and can be found within the investment company’s prospectus.

50

 

  

Portfolio Summary (Unaudited)

Value (%)

Government

45.4

Mortgage Securities

29.6

Financial

8.3

Investment Companies

7.1

Consumer, Non-cyclical

4.2

Communications

2.3

Utilities

1.9

Technology

1.9

Energy

1.6

Consumer, Cyclical

1.5

Industrial

1.5

Basic Materials

.6

Asset Backed Securities

.4

Banks

.0

 

106.3

 Based on net assets.

See notes to financial statements.

          
 

TBA Sale Commitments

       

Description

    

Principal

Amount ($)

 

Value ($)

 

Bonds and Notes .0%

     

U.S. Government Agencies Mortgage-Backed .0%

     

Federal National Mortgage Association

   

2.50%

  

(25,000)

a 

(22,532)

 

Total Sale Commitments (proceeds $22,508)

  

(22,532)

 

a The Federal Housing Finance Agency (“FHFA”) placed the Federal Home Loan Mortgage Corporation and Federal National Mortgage Association into conservatorship with FHFA as the conservator. As such, the FHFA oversees the continuing affairs of these companies.

See notes to financial statements.

51

 

STATEMENT OF INVESTMENTS (continued)

       

Affiliated Issuers

   

Description

Value ($) 10/31/2021

Purchases ($)

Sales ($)

Value ($) 10/31/2022

Dividends/
Distributions ($)

 

Registered Investment Companies - 6.2%

  

Dreyfus Institutional Preferred Government Plus Money Market Fund, Institutional Shares - 6.2%

125,107,114

343,958,589

(429,450,692)

39,615,011

583,842

 

Investment of Cash Collateral for Securities Loaned - .9%

  

Dreyfus Institutional Preferred Government Plus Money Market Fund, SL Shares - .9%

23,856,730

374,680,864

(393,073,886)

5,463,708

76,266

†† 

Total - 7.1%

148,963,844

718,639,453

(822,524,578)

45,078,719

660,108

 

 Includes reinvested dividends/distributions.

†† Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

See notes to financial statements.

52

 

STATEMENT OF ASSETS AND LIABILITIES

October 31, 2022

       

 

 

 

 

 

 

 

 

 

 

Cost

 

Value

 

Assets ($):

 

 

 

 

Investments in securities—See Statement of Investments
(including securities on loan, valued at $48,550,037)—Note 1(c):

 

 

 

Unaffiliated issuers

711,795,910

 

629,482,164

 

Affiliated issuers

 

45,078,719

 

45,078,719

 

Cash

 

 

 

 

1,322,230

 

Receivable for investment securities sold

 

20,605,660

 

Dividends, interest and securities lending income receivable

 

4,056,397

 

Receivable for shares of Common Stock subscribed

 

1,888,984

 

Tax reclaim receivable—Note 1(b)

 

1,837

 

 

 

 

 

 

702,435,991

 

Liabilities ($):

 

 

 

 

Due to BNY Mellon Investment Adviser, Inc. and affiliates—Note 3(b)

 

120,569

 

Payable for investment securities purchased

 

61,750,380

 

Liability for securities on loan—Note 1(c)

 

5,463,708

 

Payable for shares of Common Stock redeemed

 

509,912

 

TBA sale commitments, at value (proceeds $22,508)—Note 4

 

22,532

 

Directors’ fees and expenses payable

 

1,756

 

 

 

 

 

 

67,868,857

 

Net Assets ($)

 

 

634,567,134

 

Composition of Net Assets ($):

 

 

 

 

Paid-in capital

 

 

 

 

739,854,404

 

Total distributable earnings (loss)

 

 

 

 

(105,287,270)

 

Net Assets ($)

 

 

634,567,134

 

    

Net Asset Value Per Share

Class I

Investor Shares

 

Net Assets ($)

422,861,578

211,705,556

 

Shares Outstanding

48,527,714

24,302,868

 

Net Asset Value Per Share ($)

8.71

8.71

 

 

 

 

 

See notes to financial statements.

 

 

 

53

 

STATEMENT OF OPERATIONS

Year Ended October 31, 2022

       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Income ($):

 

 

 

 

Income:

 

 

 

 

Interest (net of $2,310 foreign taxes withheld at source)

 

 

16,781,476

 

Dividends from affiliated issuers

 

 

583,842

 

Income from securities lending—Note 1(c)

 

 

76,266

 

Total Income

 

 

17,441,584

 

Expenses:

 

 

 

 

Management fee—Note 3(a)

 

 

1,133,709

 

Distribution fees—Note 3(b)

 

 

579,294

 

Directors’ fees—Note 3(a,c)

 

 

84,210

 

Loan commitment fees—Note 2

 

 

15,725

 

Total Expenses

 

 

1,812,938

 

Less—Directors’ fees reimbursed by
BNY Mellon Investment Adviser, Inc.—Note 3(a)

 

 

(84,210)

 

Net Expenses

 

 

1,728,728

 

Net Investment Income

 

 

15,712,856

 

Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):

 

 

Net realized gain (loss) on investments

(20,538,558)

 

Net change in unrealized appreciation (depreciation) on investments

(121,776,432)

 

Net Realized and Unrealized Gain (Loss) on Investments

 

 

(142,314,990)

 

Net (Decrease) in Net Assets Resulting from Operations

 

(126,602,134)

 

 

 

 

 

 

 

 

See notes to financial statements.

     

54

 

STATEMENT OF CHANGES IN NET ASSETS

          

 

 

 

 

Year Ended October 31,

 

 

 

 

2022

 

2021

 

Operations ($):

 

 

 

 

 

 

 

 

Net investment income

 

 

15,712,856

 

 

 

19,316,478

 

Net realized gain (loss) on investments

 

(20,538,558)

 

 

 

10,945,217

 

Net change in unrealized appreciation
(depreciation) on investments

 

(121,776,432)

 

 

 

(35,958,788)

 

Net Increase (Decrease) in Net Assets
Resulting from Operations

(126,602,134)

 

 

 

(5,697,093)

 

Distributions ($):

 

Distributions to shareholders:

 

 

 

 

 

 

 

 

Class I

 

 

(18,017,721)

 

 

 

(20,321,207)

 

Investor Shares

 

 

(7,010,349)

 

 

 

(6,787,951)

 

Total Distributions

 

 

(25,028,070)

 

 

 

(27,109,158)

 

Capital Stock Transactions ($):

 

Net proceeds from shares sold:

 

 

 

 

 

 

 

 

Class I

 

 

174,463,217

 

 

 

287,546,983

 

Investor Shares

 

 

70,680,691

 

 

 

102,042,029

 

Distributions reinvested:

 

 

 

 

 

 

 

 

Class I

 

 

15,834,214

 

 

 

18,390,880

 

Investor Shares

 

 

6,732,966

 

 

 

6,575,074

 

Cost of shares redeemed:

 

 

 

 

 

 

 

 

Class I

 

 

(397,717,134)

 

 

 

(444,885,787)

 

Investor Shares

 

 

(96,114,531)

 

 

 

(156,899,327)

 

Increase (Decrease) in Net Assets
from Capital Stock Transactions

(226,120,577)

 

 

 

(187,230,148)

 

Total Increase (Decrease) in Net Assets

(377,750,781)

 

 

 

(220,036,399)

 

Net Assets ($):

 

Beginning of Period

 

 

1,012,317,915

 

 

 

1,232,354,314

 

End of Period

 

 

634,567,134

 

 

 

1,012,317,915

 

Capital Share Transactions (Shares):

 

Class I

 

 

 

 

 

 

 

 

Shares sold

 

 

17,902,867

 

 

 

26,507,313

 

Shares issued for distributions reinvested

 

 

1,586,879

 

 

 

1,692,964

 

Shares redeemed

 

 

(39,611,422)

 

 

 

(41,061,447)

 

Net Increase (Decrease) in Shares Outstanding

(20,121,676)

 

 

 

(12,861,170)

 

Investor Shares

 

 

 

 

 

 

 

 

Shares sold

 

 

7,319,581

 

 

 

9,393,971

 

Shares issued for distributions reinvested

 

 

679,824

 

 

 

605,205

 

Shares redeemed

 

 

(9,657,071)

 

 

 

(14,497,725)

 

Net Increase (Decrease) in Shares Outstanding

(1,657,666)

 

 

 

(4,498,549)

 

 

 

 

 

 

 

 

 

 

 

See notes to financial statements.

        

55

 

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share. Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. These figures have been derived from the fund’s financial statements.

50

60

        
   

Class I Shares

 

Year Ended October 31,

 

2022

2021

2020

2019

2018

Per Share Data ($):

      

Net asset value, beginning of period

 

10.70

11.01

10.64

9.83

10.34

Investment Operations:

      

Net investment incomea

 

.21

.19

.24

.28

.26

Net realized and unrealized
gain (loss) on investments

 

(1.88)

(.25)

.40

.82

(.49)

Total from Investment Operations

 

(1.67)

(.06)

.64

1.10

(.23)

Distributions:

      

Dividends from net
investment income

 

(.22)

(.21)

(.27)

(.29)

(.27)

Dividends from net realized
gain on investments

 

(.10)

(.04)

-

(.00)b

(.01)

Total Distributions

 

(.32)

(.25)

(.27)

(.29)

(.28)

Net asset value, end of period

 

8.71

10.70

11.01

10.64

9.83

Total Return (%)

 

(15.94)

(.51)

6.02

11.40

(2.27)

Ratios/Supplemental Data (%):

      

Ratio of total expenses
to average net assets

 

.16

.16

.16

.16

.16c

Ratio of net expenses
to average net assets

 

.15

.15

.15

.15

.15

Ratio of net investment income
to average net assets

 

2.15

1.71

2.23

2.74

2.58

Portfolio Turnover Rated

 

248.23

183.21

133.65

125.67

156.30

Net Assets, end of period ($ x 1,000)

 

422,862

734,596

897,174

815,817

801,263

a Based on average shares outstanding.

b Amount represents less than $.01 per share.

c The ratio has been corrected due to immaterial correction within the October 31, 2018 shareholder report which reflected total expense ratio of .21.

d The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended October 31, 2022, 2021, 2020, 2019, and 2018 were 143.06%, 145.54%, 113.32%, 90.56%, and 77.41%, respectively.

See notes to financial statements.

56

 

        
   

Investor Shares

 

Year Ended October 31,

 

2022

2021

2020

2019

2018

Per Share Data ($):

      

Net asset value, beginning of period

 

10.70

11.00

10.64

9.83

10.33

Investment Operations:

      

Net investment incomea

 

.19

.16

.22

.26

.23

Net realized and unrealized
gain (loss) on investments

 

(1.88)

(.24)

.38

.82

(.47)

Total from Investment Operations

 

(1.69)

(.08)

.60

1.08

(.24)

Distributions:

      

Dividends from net
investment income

 

(.20)

(.18)

(.24)

(.27)

(.25)

Dividends from net realized
gain on investments

 

(.10)

(.04)

-

(.00)b

(.01)

Total Distributions

 

(.30)

(.22)

(.24)

(.27)

(.26)

Net asset value, end of period

 

8.71

10.70

11.00

10.64

9.83

Total Return (%)

 

(16.15)

(.67)

5.67

11.12

(2.42)

Ratios/Supplemental Data (%):

      

Ratio of total expenses
to average net assets

 

.41

.41

.41

.41

.41c

Ratio of net expenses
to average net assets

 

.40

.40

.40

.40

.40

Ratio of net investment income
to average net assets

 

1.91

1.46

2.01

2.51

2.33

Portfolio Turnover Rated

 

248.23

183.21

133.65

125.67

156.30

Net Assets, end of period ($ x 1,000)

 

211,706

277,722

335,180

342,772

397,658

a Based on average shares outstanding.

b Amount represents less than $.01 per share.

c The ratio has been corrected due to immaterial correction within the October 31, 2018 shareholder report which reflected total expense ratio of .46.

d The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended October 31, 2022, 2021, 2020, 2019 and 2018 were 143.06%, 145.54%, 113.32%, 90.56% and 77.41%, respectively.

See notes to financial statements.

57

 

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

BNY Mellon Bond Market Index Fund (the “fund”) is a separate diversified series of BNY Mellon Investment Funds IV, Inc. (the “Company”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering four series, including the fund. The fund’s investment objective is to seek to match the total return of the Bloomberg U.S. Aggregate Bond Index. BNY Mellon Investment Adviser, Inc. (the “Adviser”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser.

BNY Mellon Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Adviser, is the distributor of the fund’s shares, which are sold to the public without a sales charge. The fund is authorized to issue 500 million shares of $.001 par value Common Stock in each of the following classes of shares: Class I and Investor. Class I shares are sold primarily to bank trust departments and other financial service providers (including BNY Mellon and its affiliates), acting on behalf of customers having a qualified trust or an investment account or relationship at such institution, and bear no Distribution Plan fees. Investor shares are sold primarily to retail investors through financial intermediaries and bear Distribution Plan fees. Differences between the two classes include the services offered to and the expenses borne by each class, as well as their minimum purchase and account balance requirements. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

The Company accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund is an investment company and applies the accounting and reporting guidance of the FASB ASC Topic 946 Financial Services-Investment Companies. The fund’s financial statements are prepared in accordance with GAAP, which may

58

 

require the use of management estimates and assumptions. Actual results could differ from those estimates.

The Company enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown. The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted quoted prices in active markets for identical investments.

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

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 necessarily an indication of the risk associated with investing in those securities.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:

The Company’s Board of Directors (the “Board”) has designated the Adviser as the fund’s valuation designee, effective September 8, 2022, to make all fair value determinations with respect to the fund’s portfolio

59

 

NOTES TO FINANCIAL STATEMENTS (continued)

investments, subject to the Board’s oversight and pursuant to Rule 2a-5 under the Act.

Registered investment companies that are not traded on an exchange are valued at their net asset value and are generally categorized within Level 1 of the fair value hierarchy.

Investments in debt securities, excluding short-term investments (other than U.S. Treasury Bills), are valued each business day by one or more independent pricing services (each, a “Service”) approved by the Board. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of a Service are valued at the mean between the quoted bid prices (as obtained by a Service from dealers in such securities) and asked prices (as calculated by a Service based upon its evaluation of the market for such securities). Securities are valued as determined by a Service, based on methods which include consideration of the following: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. The Services are engaged under the general supervision of the Board. These securities are generally categorized within Level 2 of the fair value hierarchy.

When market quotations or official closing prices are not readily available, or are determined not to accurately reflect fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.

For securities where observable inputs are limited, assumptions about market activity and risk are used and such securities are generally categorized within Level 3 of the fair value hierarchy.

The following is a summary of the inputs used as of October 31, 2022 in valuing the fund’s investments:

60

 

       
 

Level 1-Unadjusted Quoted Prices

Level 2- Other Significant Observable Inputs

 

Level 3-Significant Unobservable Inputs

Total

 

Assets ($)

  

Investments in Securities:

  

Asset-Backed Securities

-

2,519,004

 

-

2,519,004

 

Commercial Mortgage-Backed

-

6,271,805

 

-

6,271,805

 

Corporate Bonds

-

161,764,024

 

-

161,764,024

 

Foreign Governmental

-

7,350,477

 

-

7,350,477

 

Investment Companies

45,078,719

-

 

-

45,078,719

 

Municipal Securities

-

4,334,297

 

-

4,334,297

 

U.S. Government Agencies Collateralized Municipal-Backed Securities

-

5,712,680

 

-

5,712,680

 

U.S. Government Agencies Mortgage-Backed

-

174,801,197

 

-

174,801,197

 

U.S. Government Agencies Obligations

-

7,741,489

 

-

7,741,489

 

U.S. Treasury Securities

-

258,987,191

 

-

258,987,191

 

Liabilities ($)

  

Investments in Securities:

  

U.S. Government Agencies Mortgage-Backed

-

(22,532)

 

-

(22,532)

 

 See Statement of Investments for additional detailed categorizations, if any.

(b) Foreign taxes: The fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, realized and unrealized capital gains on investments or certain foreign currency transactions. Foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the fund invests. These foreign taxes, if any, are paid by the fund and are reflected in the Statement of Operations, if applicable. Foreign taxes payable or deferred or those subject to reclaims as of October 31, 2022, if any, are disclosed in the fund’s Statement of Assets and Liabilities.

61

 

NOTES TO FINANCIAL STATEMENTS (continued)

(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

Pursuant to a securities lending agreement with BNY Mellon, the fund may lend securities to qualified institutions. It is the fund’s policy that, at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by the Adviser, or U.S. Government and Agency securities. The fund is entitled to receive all dividends, interest and distributions on securities loaned, in addition to income earned as a result of the lending transaction. Should a borrower fail to return the securities in a timely manner, BNY Mellon is required to replace the securities for the benefit of the fund or credit the fund with the market value of the unreturned securities and is subrogated to the fund’s rights against the borrower and the collateral. Additionally, the contractual maturity of security lending transactions are on an overnight and continuous basis. During the period ended October 31, 2022, BNY Mellon earned $10,386 from the lending of the fund’s portfolio securities, pursuant to the securities lending agreement.

(d) Affiliated issuers: Investments in other investment companies advised by the Adviser are considered “affiliated” under the Act.

(e) Market Risk: The value of the securities in which the fund invests may be affected by political, regulatory, economic and social developments, and developments that impact specific economic sectors, industries or segments of the market. The value of a security may also decline due to general market conditions that are not specifically related to a particular company or industry, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates, changes to inflation, adverse changes to credit markets or adverse investor sentiment generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the fund. Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different

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country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies world-wide. Recent examples include pandemic risks related to COVID-19 and aggressive measures taken world-wide in response by governments, including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines of large populations, and by businesses, including changes to operations and reducing staff.

Debt Risk: The fund invests primarily in debt securities. Failure of an issuer of the debt securities to make timely interest or principal payments, or a decline or the perception of a decline in the credit quality of a debt security, can cause the debt security’s price to fall, potentially lowering the fund’s share price. In addition, the value of debt securities may decline due to general market conditions that are not specifically related to a particular issuer, such as real or perceived adverse economic conditions, changes in outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment. Such values may also decline because of factors that affect a particular industry.

(f) Dividends and distributions to shareholders: It is the policy of the fund to declare dividends daily from net investment income. Such dividends are paid monthly. Dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”). To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

(g) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.

As of and during the period ended October 31, 2022, the fund did not have any liabilities for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended October 31, 2022, the fund did not incur any interest or penalties.

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NOTES TO FINANCIAL STATEMENTS (continued)

Each tax year in the four-year period ended October 31, 2022 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At October 31, 2022, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $271,282, accumulated capital losses $20,683,158 and unrealized depreciation $84,875,394.

The fund is permitted to carry forward capital losses for an unlimited period. Furthermore, capital loss carryovers retain their character as either short-term or long-term capital losses.

The accumulated capital loss carryover is available for federal income tax purposes to be applied against future net realized capital gains, if any, realized subsequent to October 31, 2022. The fund has $19,309,922 of short-term capital losses and $1,373,236 of long-term capital losses which can be carried forward for an unlimited period.

The tax character of distributions paid to shareholders during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows: ordinary income $16,878,725 and $22,086,760, and long-term capital gains $8,149,345 and $5,022,398, respectively.

(h) New accounting pronouncements: In March 2020, the FASB issued Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), and in January 2021, the FASB issued Accounting Standards Update 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates as of the end of 2021. The temporary relief provided by ASU 2020-04 and ASU 2021-01 is effective for certain reference rate-related contract modifications that occur during the period from March 12, 2020 through December 31, 2022 (“FASB Effective Date”). Management had evaluated the impact of ASU 2020-04 and ASU 2021-01 on the fund’s investments, derivatives, debt and other contracts that will undergo reference rate-related modifications as a result of the Reference Rate Reform. Management will be adopting ASU 2020-04 and ASU 2021-01 on FASB Effective Date or if amended ASU 2020-04 new extended FASB Effective Date, if any. Management will continue to work with other financial institutions and counterparties to modify contracts as required by applicable regulation and within the regulatory deadlines. As of October

64

 

31, 2022, management believes these accounting standards have no impact on the fund and does not have any concerns of adopting the regulations by FASB Effective Date.

NOTE 2—Bank Lines of Credit:

The fund participates with other long-term open-end funds managed by the Adviser in a $823.5 million unsecured credit facility led by Citibank, N.A. (the “Citibank Credit Facility”) and a $300 million unsecured credit facility provided by BNY Mellon (the “BNYM Credit Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions (each, a “Facility”). The Citibank Credit Facility is available in two tranches: (i) Tranche A is in an amount equal to $688.5 million and is available to all long-term open-ended funds, including the fund, and (ii) Tranche B is an amount equal to $135 million and is available only to BNY Mellon Floating Rate Income Fund, a series of BNY Mellon Investment Funds IV, Inc. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for Tranche A of the Citibank Credit Facility and the BNYM Credit Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing. During the period ended October 31, 2022, the fund did not borrow under the Facilities.

NOTE 3—Management Fee and Other Transactions with Affiliates:

(a) Pursuant to a management agreement with the Adviser, the Adviser provides or arranges for one or more third parties and/or affiliates to provide investment advisory, administrative, custody, fund accounting and transfer agency services to the fund. The Adviser also directs the investments of the fund in accordance with its investment objective, policies and limitations. For these services, the fund is contractually obligated to pay the Adviser a fee, calculated daily and paid monthly, at the annual rate of .15% of the value of the fund’s average daily net assets. Out of its fee the Adviser pays all of the expenses of the fund except brokerage fees, taxes, interest expenses, commitment fees on borrowings, Distribution Plan fees, fees and expenses of non-interested Board Members (including counsel fees) and extraordinary expenses. In addition, the Adviser is required to reduce its fee in an amount equal to the fund’s allocable portion of fees and expenses of the non-interested Board Members (including counsel fees). During the period ended October 31, 2022, fees reimbursed by the Adviser amounted to $84,210.

(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act, Investor shares may pay annually up to .25% of the value of its

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NOTES TO FINANCIAL STATEMENTS (continued)

average daily net assets to compensate the Distributor for shareholder servicing activities primarily intended to result in the sale of Investor shares. During the period ended October 31, 2022, Investor shares were charged $579,294 pursuant to the Distribution Plan.

Under its terms, the Distribution Plan shall remain in effect from year to year, provided such continuance is approved annually by a vote of a majority of those Directors who are not “interested persons” of the Company and who have no direct or indirect financial interest in the operation of or in any agreement related to the Distribution Plan.

The fund has an arrangement with The Bank of New York Mellon (the “Custodian”), a subsidiary of BNY Mellon and an affiliate of the Adviser, whereby the fund will receive interest income or be charged overdraft fees when cash balances are maintained. For financial reporting purposes, the fund includes this interest income and overdraft fees, if any, as interest income in the Statement of Operations.

The components of “Due to BNY Mellon Investment Adviser, Inc. and affiliates” in the Statement of Assets and Liabilities consist of: management fee of $80,643 and Distribution Plan fees of $44,426, which are offset against an expense reimbursement currently in effect in the amount of $4,500.

(c) Each Board member also serves as a Board member of other funds in the BNY Mellon Family of Funds complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales (including paydowns) of investment securities, excluding short-term securities, during the period ended October 31, 2022, amounted to $1,901,423,767 and $2,141,596,970, respectively, of which $805,626,719 in purchases and $806,913,692 in sales were from mortgage dollar transactions.

Mortgage Dollar Rolls: A mortgage dollar roll transaction involves a sale by the fund of mortgage related securities that it holds with an agreement by the fund to repurchase similar securities at an agreed upon price and date. The securities purchased will bear the same interest rate as those sold, but generally will be collateralized by pools of mortgages with different prepayment histories than those securities sold. The fund accounts for mortgage dollar rolls as purchases and sales transactions. The fund executes mortgage dollar rolls entirely in the To-Be-Announced (“TBA”) market.

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TBA Securities: During the period ended October 31, 2022, the fund transacted in TBA securities that involved buying or selling mortgage-backed securities on a forward commitment basis. A TBA transaction typically does not designate the actual security to be delivered and only includes an approximate principal amount; however, delivered securities must meet specified terms defined by industry guidelines, including issuer, rate and current principal amount outstanding on underlying mortgage pools. TBA securities subject to a forward commitment to sell at period end are included at the end of the fund’s Statement of Investments. The proceeds and value of these commitments are reflected in the fund’s Statement of Assets and Liabilities as Receivable for TBA sale commitments (included in receivable securities sold) and TBA sale commitments, at value, respectively.

At October 31, 2022, the cost of investments for federal income tax purposes was $759,436,508; accordingly, accumulated net unrealized depreciation on investments was $84,875,649 consisting of $600,240 gross unrealized appreciation and $85,475,889 gross unrealized depreciation.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of the Fund and Board of Directors of
BNY Mellon Investment Funds IV, Inc.:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of BNY Mellon Bond Market Index Fund (the Fund), a series of BNY Mellon Investment Funds IV, Inc., including the statement of investments, as of October 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements), and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of October 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of October 31, 2022, by correspondence with the custodian and brokers or by other appropriate auditing procedures when replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more BNY Mellon Investment Adviser, Inc. investment companies since 1994.

New York, New York
December 23, 2022

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IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the fund reports the maximum amount allowable but not less than 90.70% as interest-related dividends in accordance with Sections 871(k)(1) and 881(e) of the Internal Revenue Code. Also, the fund reports the maximum amount allowable but not less than $.0915 per share as a capital gain dividend in accordance with Section 852(b)(3)(C) of the Internal Revenue Code. The fund also reports the maximum amount allowable but not less than $.0039 per share as a short-term capital gain dividend paid on December 15, 2021 in accordance with Sections 871(k)(2) and 881(c) of the Internal Revenue Code.

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BOARD MEMBERS INFORMATION (Unaudited)

Independent Board Members

Joseph S. DiMartino (79)

Chairman of the Board (1999)

Principal Occupation During Past 5 Years:

· Director or Trustee of funds in the BNY Mellon Family of Funds and certain other entities (as described in the fund’s Statement of Additional Information) (1995-Present)

Other Public Company Board Memberships During Past 5 Years:

· CBIZ, Inc., a public company providing professional business services, products and solutions, Director (1997-Present)

No. of Portfolios for which Board Member Serves: 94

———————

Francine J. Bovich (71)

Board Member (2012)

Principal Occupation During Past 5 Years:

· The Bradley Trusts, private trust funds, Trustee (2011-Present)

Other Public Company Board Memberships During Past 5 Years:

· Annaly Capital Management, Inc., a real estate investment trust, Director (2014-Present)

No. of Portfolios for which Board Member Serves: 54

———————

Andrew J. Donohue (72)

Board Member (2019)

Principal Occupation During Past 5 Years:

· Attorney, Solo Law Practice (2019-Present)

· Shearman & Sterling LLP. a law firm, Of Counsel (2017-2019)

· Chief of Staff to the Chair of the SEC (2015-2017)

Other Public Company Board Memberships During Past 5 Years:

· Oppenheimer Funds (58 funds), Director (2017-2019)

No. of Portfolios for which Board Member Serves: 44

———————

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Kenneth A. Himmel (76)

Board Member (1993)

Principal Occupation During Past 5 Years:

· Gulf Related, an international real estate development company, Managing Partner (2010-Present)

· Related Urban Development, a real estate development company, President and Chief Executive Officer (1996-Present)

· American Food Management, a restaurant company, Chief Executive Officer (1983-Present)

· Himmel & Company, a real estate development company, President and Chief Executive Officer (1980-Present)

No. of Portfolios for which Board Member Serves: 22

———————

Roslyn M. Watson (73)

Board Member (1993)

Principal Occupation During Past 5 Years:

· Watson Ventures, Inc., a real estate investment company, Principal (1993-Present)

Other Public Company Board Memberships During Past 5 Years:

· American Express Bank, FSB, Director (1993-2018)

No. of Portfolios for which Board Member Serves: 44

———————

Benaree Pratt Wiley (76)

Board Member (1998)

Principal Occupation During Past 5 Years:

· The Wiley Group, a firm specializing in strategy and business development, Principal (2005-Present)

Other Public Company Board Memberships During Past 5 Years:

· CBIZ, Inc., a public company providing professional business services, products and solutions, Director (2008-Present)

· Blue Cross-Blue Shield of Massachusetts, Director (2004-2020)

No. of Portfolios for which Board Member Serves: 61

———————

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BOARD MEMBERS INFORMATION (Unaudited) (continued)

Interested Board Member

Bradley Skapyak (63)

Board Member (2021)

Principal Occupation During Past 5 Years:

· Chief Operating Officer and Director of The Dreyfus Corporation (2009-2019)

· Chief Executive Officer and Director of the Distributor (2016-2019)

· Chairman and Director of The Dreyfus Transfer Agent, Inc. (2011-2019)

· Senior Vice President of The Bank of New York Mellon (2007-2019)

No. of Portfolios for which Board Member Serves: 22

Mr. Skapyak is deemed to be an Interested Board Member of the fund as a result of his ownership of unvested restricted stock units of BNY Mellon.

———————

The address of the Board Members and Officers is c/o BNY Mellon Investment Adviser, Inc., 240 Greenwich Street, New York, New York 10286. Additional information about each Board Member is available in the fund’s Statement of Additional Information which can be obtained from the Adviser free of charge by calling this toll free number: 1-800-373-9387.

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OFFICERS OF THE FUND (Unaudited)

DAVID DIPETRILLO, President since January 2021.

Vice President and Director of the Adviser since February 2021; Head of North America Product, BNY Mellon Investment Management since January 2018; and Director of Product Strategy, BNY Mellon Investment Management from January 2016 to December 2017. He is an officer of 55 investment companies (comprised of 109 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 44 years old and has been an employee of BNY Mellon since 2005.

JAMES WINDELS, Treasurer since November 2001.

Vice President of the Adviser since September 2020; and Director–BNY Mellon Fund Administration. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 64 years old and has been an employee of the Adviser since April 1985.

PETER M. SULLIVAN, Chief Legal Officer since July 2021 and Vice President and Assistant Secretary since March 2019.

Chief Legal Officer of the Adviser and Associate General Counsel of BNY Mellon since July 2021; Senior Managing Counsel of BNY Mellon from December 2020 to July 2021; and Managing Counsel of BNY Mellon from March 2009 to December 2020. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 54 years old and has been an employee of BNY Mellon since April 2004.

JAMES BITETTO, Vice President since August 2005 and Secretary since February 2018.

Senior Managing Counsel of BNY Mellon since December 2019; Managing Counsel of BNY Mellon from April 2014 to December 2019; and Secretary of the Adviser. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 56 years old and has been an employee of the Adviser since December 1996.

DEIRDRE CUNNANE, Vice President and Assistant Secretary since March 2019.

Managing Counsel of BNY Mellon since December 2021, Counsel of BNY Mellon from August 2018 to December 2021; and Senior Regulatory Specialist at BNY Mellon Investment Management Services from February 2016 to August 2018. She is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 32 years old and has been an employee of the Adviser since August 2018.

SARAH S. KELLEHER, Vice President and Assistant Secretary since April 2014.

Vice President of BNY Mellon ETF Investment Adviser; LLC since February 2020; Senior Managing Counsel of BNY Mellon since September 2021; Managing Counsel of BNY Mellon from December 2017 to September 2021; and Senior Counsel of BNY Mellon from March 2013 to December 2017. She is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 47 years old and has been an employee of the Adviser since March 2013.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.

Senior Managing Counsel of BNY Mellon. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 57 years old and has been an employee of the Adviser since October 1990.

AMANDA QUINN, Vice President and Assistant Secretary since March 2020.

Counsel of BNY Mellon since June 2019; Regulatory Administration Manager at BNY Mellon Investment Management Services from September 2018 to May 2019; and Senior Regulatory Specialist at BNY Mellon Investment Management Services from April 2015 to August 2018. She is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 37 years old and has been an employee of the Adviser since June 2019.

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OFFICERS OF THE FUND (Unaudited) (continued)

NATALYA ZELENSKY, Vice President and Assistant Secretary since March 2017.

Chief Compliance Officer since August 2021 and Vice President since February 2020 of BNY Mellon ETF Investment Adviser, LLC; Chief Compliance Officer since August 2021 and Vice President and Assistant Secretary since February 2020 of BNY Mellon ETF Trust; Managing Counsel of BNY Mellon from December 2019 to August 2021; Counsel of BNY Mellon from May 2016 to December 2019; and Assistant Secretary of the Adviser from April 2018 to August 2021. She is an officer of 55 investment companies (comprised of 129 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 37 years old and has been an employee of BNY Mellon since May 2016.

DANIEL GOLDSTEIN, Vice President since March 2022.

Vice President and Head of Product Development of North America Product, BNY Mellon Investment Management since January 2018; Co-Head of Product Management, Development & Oversight of North America Product, BNY Mellon Investment Management from January 2010 to January 2018; and Senior Vice President, Development & Oversight of North America Product, BNY Mellon Investment Management since 2010. He is an officer of 55 investment companies (comprised of 109 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 53 years old and has been an employee of the Distributor since 1991.

JOSEPH MARTELLA, Vice President since March 2022.

Vice President and Head of Product Management of North America Product, BNY Mellon Investment Management since January 2018; Director of Product Research and Analytics of North America Product, BNY Mellon Investment Management from January 2010 to January 2018; and Senior Vice President of North America Product, BNY Mellon Investment Management since 2010. He is an officer of 55 investment companies (comprised of 109 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 46 years old and has been an employee of the Distributor since 1999.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager–BNY Mellon Fund Administration. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 54 years old and has been an employee of the Adviser since April 1991.

ROBERT SALVIOLO, Assistant Treasurer since July 2007.

Senior Accounting Manager–BNY Mellon Fund Administration. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 55 years old and has been an employee of the Adviser since June 1989.

ROBERT SVAGNA, Assistant Treasurer since December 2002.

Senior Accounting Manager–BNY Mellon Fund Administration. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 55 years old and has been an employee of the Adviser since November 1990.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the BNY Mellon Family of Funds and BNY Mellon Funds Trust since 2004; and Chief Compliance Officer of the Adviser from 2004 until June 2021. He is an officer of 55 investment companies (comprised of 115 portfolios) managed by the Adviser. He is 65 years old.

CARIDAD M. CAROSELLA, Anti-Money Laundering Compliance Officer since January 2016.

Anti-Money Laundering Compliance Officer of the BNY Mellon Family of Funds and BNY Mellon Funds Trust. She is an officer of 48 investment companies (comprised of 122 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 54 years old and has been an employee of the Distributor since 1997.

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For More Information

BNY Mellon Bond Market Index Fund

240 Greenwich Street

New York, NY 10286

Adviser

BNY Mellon Investment Adviser, Inc.

240 Greenwich Street

New York, NY 10286

Custodian

The Bank of New York Mellon

240 Greenwich Street

New York, NY 10286

Transfer Agent &
Dividend Disbursing Agent

BNY Mellon Transfer, Inc.

240 Greenwich Street

New York, NY 10286

Distributor

BNY Mellon Securities Corporation

240 Greenwich Street

New York, NY 10286

  

Ticker Symbols:

Class I: DBIRX           Investor: DBMIX

Telephone Call your financial representative or 1-800-373-9387

Mail The BNY Mellon Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144

E-mail Send your request to info@bnymellon.com

Internet Information can be viewed online or downloaded at www.im.bnymellon.com

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-PORT. The fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov.

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the fund voted these proxies for the most recent 12-month period ended June 30 is available at www.im.bnymellon.com and on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-373-9387.

  

© 2022 BNY Mellon Securities Corporation
0310AR1022

 

BNY Mellon Institutional S&P 500 Stock Index Fund

 

ANNUAL REPORT

October 31, 2022

 

 

 

Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.im.bnymellon.com and sign up for eCommunications. It’s simple and only takes a few minutes.

 

The views expressed in this report reflect those of the portfolio manager(s) only through the end of the period covered and do not necessarily represent the views of BNY Mellon Investment Adviser, Inc. or any other person in the BNY Mellon Investment Adviser, Inc. organization. Any such views are subject to change at any time based upon market or other conditions and BNY Mellon Investment Adviser, Inc. disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a fund in the BNY Mellon Family of Funds are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any fund in the BNY Mellon Family of Funds.

 

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

 

Contents

THE FUND

  

Discussion of Fund Performance

2

Fund Performance

4

Understanding Your Fund’s Expenses

6

Comparing Your Fund’s Expenses
With Those of Other Funds

6

Statement of Investments

7

Statement of Assets and Liabilities

22

Statement of Operations

23

Statement of Changes in Net Assets

24

Financial Highlights

25

Notes to Financial Statements

26

Report of Independent Registered
Public Accounting Firm

35

Important Tax Information

36

Board Members Information

37

Officers of the Fund

40

FOR MORE INFORMATION

 

Back Cover

 

DISCUSSION OF FUND PERFORMANCE (Unaudited)

For the period from November 1, 2021, through October 31, 2022, as provided by David France, CFA, Todd Frysinger, CFA, Vlasta Sheremeta, CFA, Michael Stoll and Marlene Walker Smith, Portfolio Managers.

Market and Fund Performance Overview

For the 12-month period ended October 31, 2022, the BNY Mellon Institutional S&P 500 Stock Index Fund’s (the “fund”) Class I shares produced a total return of −14.78%.1 In comparison, the S&P 500® Index (the “Index”), the fund’s benchmark, returned −14.60% for the same period.2

Equities declined during the reporting period under pressure from increasing inflation, tightening central bank policies and uncertainties related to Russia’s invasion of Ukraine. The difference in returns between the fund and the Index resulted primarily from transaction costs and operating expenses that are not reflected in Index results.

The Fund’s Investment Approach

The fund seeks to match the total return of the Index. To pursue its goal, the fund normally invests at least 95% of its total assets in common stocks included in the Index. To replicate Index performance, the fund’s portfolio managers use a passive management approach and generally purchase all the securities comprising the Index (though, at times, the fund may invest in a representative sample of the Index). Because the fund has expenses, performance will tend to be slightly lower than that of the Index. The fund attempts to have a correlation between its performance and that of the Index of at least .95, before expenses. A correlation of 1.00 would mean that the fund and the Index were perfectly correlated.

The Index is an unmanaged index of 500 common stocks, chosen to reflect the industries of the U.S. economy, and is often considered a proxy for the stock market in general.

Increasing Inflation and Slowing Economic Growth Pressure Equities

U.S. equities started the reporting period on a mixed note. Concerns regarding the new COVID-19 Omicron variant came to the fore in November 2021. Markets recovered in December on continued economic growth and strong corporate earnings reports, despite increasingly hawkish rhetoric from the U.S. Federal Reserve (the “Fed”) regarding the tapering of the Fed’s asset-purchase program in the face of rising inflation. The start of 2022 saw increasingly aggressive comments from the Fed regarding monetary tightening, along with rising tensions between Russia and Ukraine, two major suppliers of energy, agricultural products and other natural resources. As a result, equity markets weakened in January, then plunged in early February as Russia invaded its neighbor, while commodity prices rose, led by soaring energy prices.

Rapidly rising inflation marked the second half of the period. The Fed attempted to dampen the trend by raising rates five times between March and September, from a range of .00 – .25% at the beginning of the period to 3.00% – 3.25% as of October 31, 2022—its most aggressive series of rate increases in decades, with further increases projected by the end of the year. Rising rates heightened concerns that economic growth could be undermined by anti-inflationary moves. The resulting risk-off sentiment broadly undermined equity markets,

2

 

with defensive, value-oriented stocks strongly outperforming more cyclical, growth-oriented shares.

Communication Services Lead the Equity Market Lower

Communications services led the market lower as the sector was viewed as both cyclical and interest-rate sensitive, with companies subject to supply-chain disruptions and discretionary spending constraints. Consumer discretionary shares suffered as well due to rising input prices and seemingly intractable supply-chain bottlenecks. Real estate underperformed as rising interest rates increased mortgage expenses and dampened property sales.

On the positive side, shares in oil & gas exploration & production companies soared as commodity prices climbed. Consumer staples shares advanced mildly as a value-oriented sector that typically tends to perform relatively well during times of increasing economic stress and uncertainty. Utility stocks also generated slight gains due to their value-oriented investment proposition and the ability of power generators to insulate profits from rising input expenses by hedging energy costs.

The fund’s use of derivatives during the period was limited to futures contracts employed solely to offset the impact of cash positions, which the fund holds pursuant to its operations. These derivatives helped the fund more closely match the performance of the Index.

Replicating the Performance of the Index

In seeking to match the performance of the Index, we do not actively manage investments in response to macroeconomic trends. We note, however, that rising inflation, tightening Fed policy and geopolitical uncertainties related to the war in Ukraine are likely to continue posing challenges for equity investors for the foreseeable future. With inflation in the United States currently running well above the Fed’s 2% target rate, the question remains open as to how soon the Fed can bring inflation under control and to what extent its actions will slow economic growth. As always, we continue to monitor factors that affect the fund’s investments.

November 15, 2022

¹  Total return includes reinvestment of dividends and any capital gains paid. The fund’s return reflects the absorption of certain fund expenses by BNY Mellon Investment Adviser, Inc. pursuant to an agreement. Had these expenses not been absorbed, returns would have been lower. Past performance is no guarantee of future results. Share price and investment return fluctuate such that upon redemption, fund shares may be worth more or less than their original cost.

²  Source: Lipper Inc. — The S&P 500® Index is widely regarded as the best single gauge of large-cap U.S. equities. The Index includes 500 leading companies and captures approximately 80% coverage of available market capitalization. Investors cannot invest directly in any index.

“Standard & Poor’s®,” “S&P®,” “Standard & Poor’s® 500,” and “S&P 500®” are registered trademarks of Standard & Poor’s Financial Services LLC and have been licensed for use on behalf of the fund. The fund is not sponsored, managed, advised, sold or promoted by Standard & Poor’s and its affiliates, and Standard & Poor’s and its affiliates make no representation regarding the advisability of investing in the fund.

Equities are subject generally to market, market sector, market liquidity, issuer and investment style risks, among other factors, to varying degrees, all of which are more fully described in the fund’s prospectus.

Recent market risks include pandemic risks related to COVID-19. The effects of COVID-19 have contributed to increased volatility in global markets and will likely affect certain countries, companies, industries and market sectors more dramatically than others. To the extent the fund may overweight its investments in certain countries, companies, industries or market sectors, such positions will increase the fund's exposure to risk of loss from adverse developments affecting those countries, companies, industries or sectors.

The fund may, but is not required, to use derivative instruments. A small investment in derivatives could have a potentially large impact on the fund’s performance. The use of derivatives involves risks different from, or possibly greater than, the risks associated with investing directly in the underlying assets.

3

 

FUND PERFORMANCE (Unaudited)

Comparison of change in value of a $10,000 investment in BNY Mellon Institutional S&P 500 Stock Index Fund Class I shares with a hypothetical investment of $10,000 in the S&P 500® Index (the “Index”).

 Source: Lipper Inc.

Past performance is not predictive of future performance.

The above graph compares a hypothetical $10,000 investment made in the Class I shares of BNY Mellon Institutional S&P 500 Stock Index Fund on 10/31/12 to a hypothetical investment of $10,000 made in the Index on that date. All dividends and capital gain distributions are reinvested.

The fund’s performance shown in the line graph above takes into account all applicable fees and expenses. The Index is widely regarded as the best single gauge of large-cap U.S. equities. The Index includes 500 leading companies and captures approximately 80% coverage of available market capitalization. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

4

 

    

Average Annual Total Returns as of 10/31/2022

 

 

1 Year

5 Years

10 Years

BNY Mellon Institutional
S&P 500 Stock Index Fund

-14.78%

10.23%

12.58%

S&P 500® Index

-14.60%

10.44%

12.78%

The performance data quoted represents past performance, which is no guarantee of future results. Share price and investment return fluctuate and an investor’s shares may be worth more or less than original cost upon redemption. Current performance may be lower or higher than the performance quoted. Go to www.im.bnymellon.com for the fund’s most recent month-end returns.

The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

5

 

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in BNY Mellon Institutional S&P 500 Stock Index Fund from May 1, 2022 to October 31, 2022. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

    

Expenses and Value of a $1,000 Investment

 

Assume actual returns for the six months ended October 31, 2022

 

 

 

 

 

 

 

 

 

Expenses paid per $1,000

$1.13

 

Ending value (after expenses)

$944.00

 

COMPARING YOUR FUND’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (“SEC”) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

    

Expenses and Value of a $1,000 Investment

 

Assuming a hypothetical 5% annualized return for the six months ended October 31, 2022

 

 

 

 

 

 

 

 

 

Expenses paid per $1,000

$1.17

 

Ending value (after expenses)

$1,024.05

 

Expenses are equal to the fund’s annualized expense ratio of .23%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

6

 

STATEMENT OF INVESTMENTS

October 31, 2022

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 99.2%

     

Automobiles & Components - 2.3%

     

Aptiv PLC

   

18,607

a 

1,694,539

 

BorgWarner Inc.

   

16,945

 

635,946

 

Ford Motor Co.

   

276,315

 

3,694,332

 

General Motors Co.

   

102,280

 

4,014,490

 

Tesla Inc.

   

186,974

a 

42,544,064

 
    

52,583,371

 

Banks - 3.8%

     

Bank of America Corp.

   

492,456

 

17,748,114

 

Citigroup Inc.

   

135,872

 

6,231,090

 

Citizens Financial Group Inc.

   

33,810

 

1,382,829

 

Comerica Inc.

   

9,287

 

654,734

 

Fifth Third Bancorp

   

46,948

 

1,675,574

 

First Republic Bank

   

12,542

 

1,506,294

 

Huntington Bancshares Inc.

   

98,691

 

1,498,129

 

JPMorgan Chase & Co.

   

205,513

 

25,869,976

 

KeyCorp

   

66,349

 

1,185,657

 

M&T Bank Corp.

   

12,267

 

2,065,395

 

Regions Financial Corp.

   

63,791

 

1,400,212

 

Signature Bank

   

4,565

 

723,689

 

SVB Financial Group

   

4,051

a 

935,619

 

The PNC Financial Services Group Inc.

   

28,784

 

4,658,115

 

Truist Financial Corp.

   

92,568

 

4,146,121

 

U.S. Bancorp

   

95,870

 

4,069,681

 

Wells Fargo & Co.

   

265,220

 

12,197,468

 

Zions Bancorp NA

   

10,873

 

564,744

 
    

88,513,441

 

Capital Goods - 5.7%

     

3M Co.

   

38,877

 

4,890,338

 

A.O. Smith Corp.

   

9,090

 

497,950

 

Allegion PLC

   

5,889

 

616,991

 

AMETEK Inc.

   

16,466

 

2,134,982

 

Carrier Global Corp.

   

60,228

 

2,394,665

 

Caterpillar Inc.

   

37,321

 

8,078,504

 

Cummins Inc.

   

9,736

 

2,380,549

 

Deere & Co.

   

19,511

 

7,722,844

 

Dover Corp.

   

9,857

 

1,288,211

 

Eaton Corp.

   

27,863

 

4,181,400

 

Emerson Electric Co.

   

41,008

 

3,551,293

 

Fastenal Co.

   

40,337

 

1,949,487

 

Fortive Corp.

   

24,808

 

1,585,231

 

Fortune Brands Home & Security Inc.

   

9,786

 

590,292

 

7

 

STATEMENT OF INVESTMENTS (continued)

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 99.2% (continued)

     

Capital Goods - 5.7% (continued)

     

Generac Holdings Inc.

   

4,629

a 

536,547

 

General Dynamics Corp.

   

15,873

 

3,965,075

 

General Electric Co.

   

76,571

 

5,957,990

 

Honeywell International Inc.

   

47,187

 

9,627,092

 

Howmet Aerospace Inc.

   

26,458

 

940,582

 

Huntington Ingalls Industries Inc.

   

2,779

 

714,398

 

IDEX Corp.

   

5,310

 

1,180,466

 

Illinois Tool Works Inc.

   

19,614

 

4,188,177

 

Ingersoll Rand Inc.

   

27,535

 

1,390,517

 

Johnson Controls International PLC

   

48,152

 

2,785,112

 

L3Harris Technologies Inc.

   

13,694

 

3,375,160

 

Lockheed Martin Corp.

   

16,572

 

8,065,261

 

Masco Corp.

   

15,875

 

734,536

 

Nordson Corp.

   

3,939

 

886,275

 

Northrop Grumman Corp.

   

10,178

 

5,587,824

 

Otis Worldwide Corp.

   

29,195

 

2,062,335

 

PACCAR Inc.

   

24,385

 

2,361,200

 

Parker-Hannifin Corp.

   

8,935

 

2,596,690

 

Pentair PLC

   

11,135

 

478,248

 

Quanta Services Inc.

   

9,986

 

1,418,411

 

Raytheon Technologies Corp.

   

104,064

 

9,867,348

 

Rockwell Automation Inc.

   

8,059

 

2,057,463

 

Snap-on Inc.

   

3,630

 

806,042

 

Stanley Black & Decker Inc.

   

10,502

 

824,302

 

Textron Inc.

   

14,536

 

994,844

 

The Boeing Company

   

39,284

a 

5,598,363

 

Trane Technologies PLC

   

16,605

 

2,650,656

 

TransDigm Group Inc.

   

3,672

 

2,114,191

 

United Rentals Inc.

   

4,912

a 

1,550,768

 

W.W. Grainger Inc.

   

3,116

 

1,820,835

 

Westinghouse Air Brake Technologies Corp.

   

12,569

 

1,172,436

 

Xylem Inc.

   

12,017

 

1,230,901

 
    

131,402,782

 

Commercial & Professional Services - .8%

     

Cintas Corp.

   

6,067

 

2,593,946

 

Copart Inc.

   

14,723

a 

1,693,439

 

CoStar Group Inc.

   

27,520

a 

2,276,454

 

Equifax Inc.

   

8,419

 

1,427,357

 

Jacobs Solutions Inc.

   

9,388

 

1,081,685

 

Leidos Holdings Inc.

   

9,949

 

1,010,719

 

Republic Services Inc.

   

14,854

 

1,969,937

 

Robert Half International Inc.

   

7,332

 

560,605

 

8

 

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 99.2% (continued)

     

Commercial & Professional Services - .8% (continued)

     

Rollins Inc.

   

15,551

 

654,386

 

Verisk Analytics Inc.

   

11,133

 

2,035,446

 

Waste Management Inc.

   

26,564

 

4,206,941

 
    

19,510,915

 

Consumer Durables & Apparel - .8%

     

D.R. Horton Inc.

   

22,734

 

1,747,790

 

Garmin Ltd.

   

10,214

 

899,241

 

Hasbro Inc.

   

8,683

 

566,566

 

Lennar Corp., Cl. A

   

17,409

 

1,404,906

 

Mohawk Industries Inc.

   

3,932

a 

372,557

 

Newell Brands Inc.

   

26,413

 

364,764

 

NIKE Inc., Cl. B

   

88,779

 

8,228,038

 

NVR Inc.

   

215

a 

911,116

 

PulteGroup Inc.

   

15,907

 

636,121

 

Ralph Lauren Corp.

   

3,319

 

307,638

 

Tapestry Inc.

   

17,452

 

552,879

 

VF Corp.

   

23,511

 

664,186

 

Whirlpool Corp.

   

4,179

 

577,705

 
    

17,233,507

 

Consumer Services - 2.0%

     

Booking Holdings Inc.

   

2,788

a 

5,212,110

 

Caesars Entertainment Inc.

   

15,042

a 

657,787

 

Carnival Corp.

   

66,261

a,b 

600,325

 

Chipotle Mexican Grill Inc.

   

1,980

a 

2,966,693

 

Darden Restaurants Inc.

   

8,629

 

1,235,155

 

Domino's Pizza Inc.

   

2,407

 

799,702

 

Expedia Group Inc.

   

10,931

a 

1,021,721

 

Hilton Worldwide Holdings Inc.

   

19,627

 

2,654,748

 

Las Vegas Sands Corp.

   

22,850

a 

868,529

 

Marriott International Inc., Cl. A

   

18,969

 

3,037,127

 

McDonald's Corp.

   

51,748

 

14,109,610

 

MGM Resorts International

   

22,107

 

786,346

 

Norwegian Cruise Line Holdings Ltd.

   

30,338

a,b 

512,409

 

Royal Caribbean Cruises Ltd.

   

16,376

a,b 

874,151

 

Starbucks Corp.

   

80,243

 

6,948,241

 

Wynn Resorts Ltd.

   

7,958

a,b 

508,516

 

Yum! Brands Inc.

   

20,236

 

2,392,907

 
    

45,186,077

 

Diversified Financials - 5.2%

     

American Express Co.

   

42,135

 

6,254,941

 

Ameriprise Financial Inc.

   

7,599

 

2,349,003

 

Berkshire Hathaway Inc., Cl. B

   

126,593

a 

37,356,328

 

BlackRock Inc.

   

10,556

 

6,818,226

 

9

 

STATEMENT OF INVESTMENTS (continued)

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 99.2% (continued)

     

Diversified Financials - 5.2% (continued)

     

Capital One Financial Corp.

   

26,799

 

2,841,230

 

Cboe Global Markets Inc.

   

7,313

 

910,469

 

CME Group Inc.

   

25,068

 

4,344,284

 

Discover Financial Services

   

19,244

 

2,010,228

 

FactSet Research Systems Inc.

   

2,723

 

1,158,609

 

Franklin Resources Inc.

   

20,409

b 

478,591

 

Intercontinental Exchange Inc.

   

39,639

 

3,788,299

 

Invesco Ltd.

   

30,009

 

459,738

 

MarketAxess Holdings Inc.

   

2,562

 

625,230

 

Moody's Corp.

   

11,065

 

2,930,787

 

Morgan Stanley

   

94,159

 

7,737,045

 

MSCI Inc.

   

5,759

 

2,700,165

 

Nasdaq Inc.

   

23,727

 

1,476,768

 

Northern Trust Corp.

   

15,027

 

1,267,527

 

Raymond James Financial Inc.

   

14,046

 

1,659,394

 

S&P Global Inc.

   

24,004

 

7,711,285

 

State Street Corp.

   

26,445

 

1,956,930

 

Synchrony Financial

   

34,689

 

1,233,541

 

T. Rowe Price Group Inc.

   

15,547

 

1,650,470

 

The Bank of New York Mellon Corp.

   

52,768

 

2,222,060

 

The Charles Schwab Corp.

   

107,211

 

8,541,500

 

The Goldman Sachs Group Inc.

   

24,032

 

8,279,264

 
    

118,761,912

 

Energy - 5.3%

     

APA Corp.

   

24,535

 

1,115,361

 

Baker Hughes Co.

   

69,937

 

1,934,457

 

Chevron Corp.

   

126,503

 

22,884,393

 

ConocoPhillips

   

89,255

 

11,254,163

 

Coterra Energy Inc.

   

55,612

 

1,731,202

 

Devon Energy Corp.

   

45,686

 

3,533,812

 

Diamondback Energy Inc.

   

12,295

 

1,931,667

 

EOG Resources Inc.

   

41,587

 

5,677,457

 

EQT Corp.

   

23,267

 

973,491

 

Exxon Mobil Corp.

   

292,533

 

32,415,582

 

Halliburton Co.

   

64,582

 

2,352,076

 

Hess Corp.

   

18,998

 

2,680,238

 

Kinder Morgan Inc.

   

139,190

 

2,522,123

 

Marathon Oil Corp.

   

49,291

 

1,500,911

 

Marathon Petroleum Corp.

   

34,758

 

3,949,204

 

Occidental Petroleum Corp.

   

52,264

 

3,794,366

 

ONEOK Inc.

   

31,148

 

1,847,699

 

Phillips 66

   

34,159

 

3,562,442

 

Pioneer Natural Resources Co.

   

16,697

 

4,281,278

 

10

 

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 99.2% (continued)

     

Energy - 5.3% (continued)

     

Schlumberger Ltd.

   

98,903

 

5,145,923

 

Targa Resources Corp.

   

14,210

 

971,538

 

The Williams Companies

   

84,155

 

2,754,393

 

Valero Energy Corp.

   

27,624

 

3,468,193

 
    

122,281,969

 

Food & Staples Retailing - 1.6%

     

Costco Wholesale Corp.

   

31,014

 

15,553,521

 

Sysco Corp.

   

36,175

 

3,131,308

 

The Kroger Company

   

45,909

 

2,171,037

 

Walgreens Boots Alliance Inc.

   

49,241

 

1,797,296

 

Walmart Inc.

   

100,131

 

14,251,645

 
    

36,904,807

 

Food, Beverage & Tobacco - 3.7%

     

Altria Group Inc.

   

126,298

 

5,843,808

 

Archer-Daniels-Midland Co.

   

39,091

 

3,791,045

 

Brown-Forman Corp., Cl. B

   

13,004

 

884,272

 

Campbell Soup Co.

   

13,613

 

720,264

 

Conagra Brands Inc.

   

34,753

 

1,275,435

 

Constellation Brands Inc., Cl. A

   

11,245

 

2,778,415

 

General Mills Inc.

   

41,510

 

3,386,386

 

Hormel Foods Corp.

   

19,990

 

928,536

 

Kellogg Co.

   

17,304

 

1,329,293

 

Keurig Dr. Pepper Inc.

   

60,543

 

2,351,490

 

Lamb Weston Holdings Inc.

   

10,660

 

919,105

 

McCormick & Co.

   

17,015

 

1,338,060

 

Molson Coors Beverage Co., Cl. B

   

12,486

 

629,669

 

Mondelez International Inc., Cl. A

   

96,749

 

5,948,129

 

Monster Beverage Corp.

   

27,073

a 

2,537,282

 

PepsiCo Inc.

   

96,749

 

17,567,683

 

Philip Morris International Inc.

   

108,465

 

9,962,510

 

The Coca-Cola Company

   

272,999

 

16,338,990

 

The Hershey Company

   

10,279

 

2,454,317

 

The J.M. Smucker Company

   

7,781

 

1,172,285

 

The Kraft Heinz Company

   

56,186

 

2,161,475

 

Tyson Foods Inc., Cl. A

   

20,696

 

1,414,572

 
    

85,733,021

 

Health Care Equipment & Services - 6.4%

     

Abbott Laboratories

   

122,518

 

12,121,931

 

ABIOMED Inc.

   

3,125

a 

787,750

 

Align Technology Inc.

   

5,267

a 

1,023,378

 

AmerisourceBergen Corp.

   

10,941

 

1,720,144

 

Baxter International Inc.

   

34,861

 

1,894,695

 

Becton Dickinson & Co.

   

19,858

 

4,685,892

 

11

 

STATEMENT OF INVESTMENTS (continued)

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 99.2% (continued)

     

Health Care Equipment & Services - 6.4% (continued)

     

Boston Scientific Corp.

   

101,503

a 

4,375,794

 

Cardinal Health Inc.

   

18,226

 

1,383,353

 

Centene Corp.

   

40,077

a 

3,411,755

 

Cigna Corp.

   

21,409

 

6,916,392

 

CVS Health Corp.

   

91,756

 

8,689,293

 

DaVita Inc.

   

4,489

a 

327,742

 

Dentsply Sirona Inc.

   

14,977

 

461,591

 

DexCom Inc.

   

27,162

a 

3,280,626

 

Edwards Lifesciences Corp.

   

43,187

a 

3,128,034

 

Elevance Health Inc.

   

16,869

 

9,223,463

 

HCA Healthcare Inc.

   

15,078

 

3,279,013

 

Henry Schein Inc.

   

9,365

a 

641,128

 

Hologic Inc.

   

17,443

a 

1,182,635

 

Humana Inc.

   

8,782

 

4,901,059

 

IDEXX Laboratories Inc.

   

5,957

a 

2,142,614

 

Intuitive Surgical Inc.

   

25,034

a 

6,170,130

 

Laboratory Corp. of America Holdings

   

6,388

 

1,417,242

 

McKesson Corp.

   

10,028

 

3,904,602

 

Medtronic PLC

   

93,871

 

8,198,693

 

Molina Healthcare Inc.

   

4,249

a 

1,524,796

 

Quest Diagnostics Inc.

   

8,334

 

1,197,179

 

ResMed Inc.

   

10,427

 

2,332,416

 

Steris PLC

   

6,864

 

1,184,589

 

Stryker Corp.

   

23,897

 

5,478,148

 

Teleflex Inc.

   

3,263

 

700,109

 

The Cooper Companies

   

3,561

 

973,542

 

UnitedHealth Group Inc.

   

65,646

 

36,443,377

 

Universal Health Services Inc., Cl. B

   

4,415

 

511,566

 

Zimmer Biomet Holdings Inc.

   

14,289

 

1,619,658

 
    

147,234,329

 

Household & Personal Products - 1.6%

     

Church & Dwight Co.

   

17,302

 

1,282,597

 

Colgate-Palmolive Co.

   

58,269

 

4,302,583

 

Kimberly-Clark Corp.

   

23,881

 

2,972,229

 

The Clorox Company

   

8,320

 

1,215,053

 

The Estee Lauder Companies, Cl. A

   

16,436

 

3,295,254

 

The Procter & Gamble Company

   

167,885

 

22,609,073

 
    

35,676,789

 

Insurance - 2.4%

     

Aflac Inc.

   

40,781

 

2,655,251

 

American International Group Inc.

   

53,609

 

3,055,713

 

Aon PLC, Cl. A

   

14,735

 

4,147,755

 

Arch Capital Group Ltd.

   

25,890

a 

1,488,675

 

12

 

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 99.2% (continued)

     

Insurance - 2.4% (continued)

     

Arthur J. Gallagher & Co.

   

14,584

 

2,728,375

 

Assurant Inc.

   

3,925

 

533,251

 

Brown & Brown Inc.

   

16,810

 

988,260

 

Chubb Ltd.

   

29,599

 

6,360,529

 

Cincinnati Financial Corp.

   

10,850

 

1,121,022

 

Everest Re Group Ltd.

   

2,707

 

873,441

 

Globe Life Inc.

   

6,140

 

709,293

 

Lincoln National Corp.

   

11,404

 

614,333

 

Loews Corp.

   

14,380

 

819,948

 

Marsh & McLennan Cos.

   

35,034

 

5,657,641

 

MetLife Inc.

   

46,918

 

3,434,867

 

Principal Financial Group Inc.

   

16,460

 

1,450,620

 

Prudential Financial Inc.

   

26,448

 

2,782,065

 

The Allstate Corp.

   

19,313

 

2,438,266

 

The Hartford Financial Services Group Inc.

   

22,633

 

1,638,856

 

The Progressive Corp.

   

40,746

 

5,231,786

 

The Travelers Companies

   

16,480

 

3,039,901

 

W.R. Berkley Corp.

   

14,591

 

1,085,279

 

Willis Towers Watson PLC

   

7,631

 

1,665,161

 
    

54,520,288

 

Materials - 2.5%

     

Air Products & Chemicals Inc.

   

15,346

 

3,842,638

 

Albemarle Corp.

   

8,161

 

2,284,019

 

Amcor PLC

   

108,868

 

1,260,691

 

Avery Dennison Corp.

   

5,930

 

1,005,431

 

Ball Corp.

   

21,947

 

1,083,962

 

Celanese Corp.

   

7,192

 

691,295

 

CF Industries Holdings Inc.

   

14,103

 

1,498,585

 

Corteva Inc.

   

50,519

 

3,300,911

 

Dow Inc.

   

49,748

 

2,325,222

 

DuPont de Nemours Inc.

   

35,686

 

2,041,239

 

Eastman Chemical Co.

   

8,647

 

664,176

 

Ecolab Inc.

   

17,646

 

2,771,657

 

FMC Corp.

   

9,219

 

1,096,139

 

Freeport-McMoRan Inc.

   

102,160

 

3,237,450

 

International Flavors & Fragrances Inc.

   

17,954

 

1,752,490

 

International Paper Co.

   

25,505

 

857,223

 

Linde PLC

   

34,924

 

10,384,651

 

LyondellBasell Industries NV, Cl. A

   

18,588

 

1,421,053

 

Martin Marietta Materials Inc.

   

4,298

 

1,444,042

 

Newmont Corp.

   

54,775

 

2,318,078

 

Nucor Corp.

   

18,288

 

2,402,677

 

13

 

STATEMENT OF INVESTMENTS (continued)

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 99.2% (continued)

     

Materials - 2.5% (continued)

     

Packaging Corp. of America

   

6,709

 

806,489

 

PPG Industries Inc.

   

16,280

 

1,858,850

 

Sealed Air Corp.

   

9,925

 

472,629

 

The Mosaic Company

   

24,120

 

1,296,450

 

The Sherwin-Williams Company

   

16,519

 

3,717,271

 

Vulcan Materials Co.

   

9,112

 

1,491,634

 

WestRock Co.

   

17,032

 

580,110

 
    

57,907,062

 

Media & Entertainment - 6.1%

     

Activision Blizzard Inc.

   

50,130

 

3,649,464

 

Alphabet Inc., Cl. A

   

420,195

a 

39,712,629

 

Alphabet Inc., Cl. C

   

377,008

a 

35,687,577

 

Charter Communications Inc., Cl. A

   

7,835

a 

2,880,303

 

Comcast Corp., Cl. A

   

310,498

 

9,855,207

 

DISH Network Corp., Cl. A

   

14,828

a 

221,085

 

Electronic Arts Inc.

   

18,706

 

2,356,208

 

Fox Corp., Cl. A

   

22,625

 

653,184

 

Fox Corp., Cl. B

   

11,113

 

302,274

 

Live Nation Entertainment Inc.

   

9,228

a 

734,641

 

Match Group Inc.

   

20,434

a 

882,749

 

Meta Platforms Inc., Cl. A

   

160,483

a 

14,950,596

 

Netflix Inc.

   

31,365

a 

9,154,816

 

News Corporation, Cl. A

   

27,545

 

464,684

 

News Corporation, Cl. B

   

10,171

b 

174,229

 

Omnicom Group Inc.

   

13,650

 

993,038

 

Paramount Global, Cl. B

   

35,689

b 

653,822

 

Take-Two Interactive Software Inc.

   

10,773

a 

1,276,385

 

The Interpublic Group of Companies

   

26,621

 

793,040

 

The Walt Disney Company

   

127,453

a 

13,578,843

 

Warner Bros Discovery Inc.

   

151,654

a 

1,971,502

 
    

140,946,276

 

Pharmaceuticals Biotechnology & Life Sciences - 8.8%

     

AbbVie Inc.

   

124,306

 

18,198,398

 

Agilent Technologies Inc.

   

21,294

 

2,946,025

 

Amgen Inc.

   

37,380

 

10,105,683

 

Biogen Inc.

   

10,175

a 

2,884,002

 

Bio-Rad Laboratories Inc., Cl. A

   

1,563

a 

549,723

 

Bio-Techne Corp.

   

2,765

 

819,159

 

Bristol-Myers Squibb Co.

   

150,361

 

11,648,467

 

Catalent Inc.

   

12,319

a 

809,728

 

Charles River Laboratories International Inc.

   

3,645

a 

773,651

 

Danaher Corp.

   

46,038

 

11,586,383

 

14

 

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 99.2% (continued)

     

Pharmaceuticals Biotechnology & Life Sciences - 8.8% (continued)

     

Eli Lilly & Co.

   

55,410

 

20,063,407

 

Gilead Sciences Inc.

   

87,556

 

6,869,644

 

Illumina Inc.

   

10,974

a 

2,511,071

 

Incyte Corp.

   

13,350

a 

992,439

 

IQVIA Holdings Inc.

   

13,100

a 

2,746,677

 

Johnson & Johnson

   

184,695

 

32,131,389

 

Merck & Co. Inc.

   

177,990

 

18,012,588

 

Mettler-Toledo International Inc.

   

1,586

a 

2,006,179

 

Moderna Inc.

   

24,024

a 

3,611,528

 

Organon & Co.

   

17,889

 

468,334

 

PerkinElmer Inc.

   

8,970

 

1,198,213

 

Pfizer Inc.

   

392,608

 

18,275,902

 

Regeneron Pharmaceuticals Inc.

   

7,514

a 

5,626,107

 

Thermo Fisher Scientific Inc.

   

27,391

 

14,078,152

 

Vertex Pharmaceuticals Inc.

   

17,837

a 

5,565,144

 

Viatris Inc.

   

86,925

 

880,550

 

Waters Corp.

   

4,188

a 

1,252,924

 

West Pharmaceutical Services Inc.

   

5,176

 

1,190,998

 

Zoetis Inc.

   

32,889

 

4,959,003

 
    

202,761,468

 

Real Estate - 2.6%

     

Alexandria Real Estate Equities Inc.

   

10,146

c 

1,474,214

 

American Tower Corp.

   

32,516

c 

6,736,990

 

AvalonBay Communities Inc.

   

9,748

c 

1,707,070

 

Boston Properties Inc.

   

9,836

c 

715,077

 

Camden Property Trust

   

7,647

c 

883,611

 

CBRE Group Inc., Cl. A

   

22,962

a 

1,628,924

 

Crown Castle International Corp.

   

30,748

c 

4,097,478

 

Digital Realty Trust Inc.

   

19,980

c 

2,002,995

 

Equinix Inc.

   

6,320

c 

3,579,901

 

Equity Residential

   

23,947

c 

1,509,140

 

Essex Property Trust Inc.

   

4,765

c 

1,058,974

 

Extra Space Storage Inc.

   

9,235

c 

1,638,658

 

Federal Realty Investment Trust

   

4,558

c 

451,151

 

Healthpeak Properties Inc.

   

38,816

c 

921,104

 

Host Hotels & Resorts Inc.

   

49,004

c 

925,196

 

Invitation Homes Inc.

   

40,727

c 

1,290,639

 

Iron Mountain Inc.

   

20,152

c 

1,009,011

 

Kimco Realty Corp.

   

44,211

c 

945,231

 

Mid-America Apartment Communities Inc.

   

7,875

c 

1,239,919

 

Prologis Inc.

   

64,380

c 

7,130,085

 

15

 

STATEMENT OF INVESTMENTS (continued)

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 99.2% (continued)

     

Real Estate - 2.6% (continued)

     

Public Storage

   

11,231

c 

3,478,802

 

Realty Income Corp.

   

44,403

c 

2,764,975

 

Regency Centers Corp.

   

10,491

c 

634,810

 

SBA Communications Corp.

   

7,616

c 

2,055,558

 

Simon Property Group Inc.

   

22,912

c 

2,496,950

 

UDR Inc.

   

21,263

c 

845,417

 

Ventas Inc.

   

28,964

c 

1,133,361

 

VICI Properties Inc.

   

67,692

c 

2,167,498

 

Vornado Realty Trust

   

9,626

b,c 

227,077

 

Welltower Inc.

   

31,989

c 

1,952,609

 

Weyerhaeuser Co.

   

52,761

c 

1,631,898

 
    

60,334,323

 

Retailing - 5.8%

     

Advance Auto Parts Inc.

   

4,469

 

848,752

 

Amazon.com Inc.

   

622,041

a 

63,721,880

 

AutoZone Inc.

   

1,393

a 

3,528,302

 

Bath & Body Works Inc.

   

15,929

 

531,710

 

Best Buy Co.

   

14,348

 

981,547

 

CarMax Inc.

   

10,835

a,b 

682,713

 

Dollar General Corp.

   

15,874

 

4,048,664

 

Dollar Tree Inc.

   

14,760

a 

2,339,460

 

eBay Inc.

   

38,216

 

1,522,525

 

Etsy Inc.

   

8,979

a 

843,218

 

Genuine Parts Co.

   

9,739

 

1,732,179

 

LKQ Corp.

   

17,737

 

986,887

 

Lowe's Cos.

   

44,616

 

8,697,889

 

O'Reilly Automotive Inc.

   

4,435

a 

3,712,849

 

Pool Corp.

   

2,916

 

887,135

 

Ross Stores Inc.

   

24,525

 

2,346,797

 

Target Corp.

   

32,622

 

5,358,163

 

The Home Depot Inc.

   

72,307

 

21,412,272

 

The TJX Companies

   

81,802

 

5,897,924

 

Tractor Supply Co.

   

7,890

 

1,733,985

 

Ulta Beauty Inc.

   

3,731

a 

1,564,669

 
    

133,379,520

 

Semiconductors & Semiconductor Equipment - 4.7%

     

Advanced Micro Devices Inc.

   

113,391

a 

6,810,263

 

Analog Devices Inc.

   

36,521

 

5,208,625

 

Applied Materials Inc.

   

61,684

 

5,446,080

 

Broadcom Inc.

   

28,385

 

13,344,356

 

Enphase Energy Inc.

   

9,318

a 

2,860,626

 

Intel Corp.

   

286,118

 

8,134,335

 

KLA Corp.

   

9,993

 

3,162,285

 

16

 

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 99.2% (continued)

     

Semiconductors & Semiconductor Equipment - 4.7% (continued)

     

Lam Research Corp.

   

9,620

 

3,893,984

 

Microchip Technology Inc.

   

38,247

 

2,361,370

 

Micron Technology Inc.

   

77,681

 

4,202,542

 

Monolithic Power Systems Inc.

   

3,134

 

1,063,836

 

NVIDIA Corp.

   

175,763

 

23,722,732

 

NXP Semiconductors NV

   

18,021

 

2,632,508

 

ON Semiconductor Corp.

   

30,953

a 

1,901,443

 

Qorvo Inc.

   

7,801

a 

671,510

 

Qualcomm Inc.

   

78,370

 

9,221,014

 

Skyworks Solutions Inc.

   

11,155

 

959,442

 

SolarEdge Technologies Inc.

   

4,019

a 

924,491

 

Teradyne Inc.

   

10,860

 

883,461

 

Texas Instruments Inc.

   

64,095

 

10,295,580

 
    

107,700,483

 

Software & Services - 12.6%

     

Accenture PLC, Cl. A

   

44,321

 

12,582,732

 

Adobe Inc.

   

32,873

a 

10,470,050

 

Akamai Technologies Inc.

   

10,793

a 

953,346

 

Ansys Inc.

   

6,044

a 

1,336,691

 

Autodesk Inc.

   

15,235

a 

3,264,860

 

Automatic Data Processing Inc.

   

29,225

 

7,063,682

 

Broadridge Financial Solutions Inc.

   

7,899

 

1,185,324

 

Cadence Design Systems Inc.

   

19,403

a 

2,937,420

 

Ceridian HCM Holding Inc.

   

9,691

a 

641,447

 

Cognizant Technology Solutions Corp., Cl. A

   

36,894

 

2,296,651

 

DXC Technology Co.

   

17,803

a 

511,836

 

EPAM Systems Inc.

   

4,105

a 

1,436,750

 

Fidelity National Information Services Inc.

   

42,361

 

3,515,539

 

Fiserv Inc.

   

44,951

a 

4,618,266

 

FLEETCOR Technologies Inc.

   

5,455

a 

1,015,285

 

Fortinet Inc.

   

45,741

a 

2,614,556

 

Gartner Inc.

   

5,568

a 

1,681,091

 

Global Payments Inc.

   

19,466

 

2,224,185

 

International Business Machines Corp.

   

62,935

 

8,703,281

 

Intuit Inc.

   

19,790

 

8,460,225

 

Jack Henry & Associates Inc.

   

5,173

 

1,029,737

 

Mastercard Inc., Cl. A

   

59,877

 

19,650,434

 

Microsoft Corp.

   

523,327

 

121,479,897

 

NortonLifeLock Inc.

   

41,176

 

927,695

 

Oracle Corp.

   

106,991

 

8,352,787

 

Paychex Inc.

   

22,328

 

2,641,626

 

17

 

STATEMENT OF INVESTMENTS (continued)

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 99.2% (continued)

     

Software & Services - 12.6% (continued)

     

Paycom Software Inc.

   

3,436

a 

1,188,856

 

PayPal Holdings Inc.

   

80,967

a 

6,767,222

 

PTC Inc.

   

6,882

a 

810,906

 

Roper Technologies Inc.

   

7,471

 

3,097,028

 

Salesforce Inc.

   

69,518

a 

11,302,932

 

ServiceNow Inc.

   

14,026

a 

5,901,299

 

Synopsys Inc.

   

10,847

a 

3,173,290

 

Tyler Technologies Inc.

   

3,006

a 

971,930

 

Verisign Inc.

   

6,586

a 

1,320,230

 

Visa Inc., Cl. A

   

114,807

b 

23,783,418

 
    

289,912,504

 

Technology Hardware & Equipment - 8.8%

     

Amphenol Corp., Cl. A

   

42,243

 

3,203,287

 

Apple Inc.

   

1,060,328

 

162,590,696

 

Arista Networks Inc.

   

17,246

a 

2,084,352

 

CDW Corp.

   

9,675

 

1,671,937

 

Cisco Systems Inc.

   

290,678

 

13,205,502

 

Corning Inc.

   

52,039

 

1,674,095

 

F5 Inc.

   

4,055

a 

579,500

 

Hewlett Packard Enterprise Co.

   

94,499

 

1,348,501

 

HP Inc.

   

63,817

 

1,762,626

 

Juniper Networks Inc.

   

22,206

 

679,504

 

Keysight Technologies Inc.

   

12,922

a 

2,250,366

 

Motorola Solutions Inc.

   

11,870

 

2,964,058

 

NetApp Inc.

   

16,109

 

1,115,870

 

Seagate Technology Holdings PLC

   

13,283

 

659,634

 

TE Connectivity Ltd.

   

22,875

 

2,796,011

 

Teledyne Technologies Inc.

   

3,169

a 

1,261,199

 

Trimble Inc.

   

16,812

a 

1,011,410

 

Western Digital Corp.

   

22,611

a 

777,140

 

Zebra Technologies Corp., Cl. A

   

3,599

a 

1,019,309

 
    

202,654,997

 

Telecommunication Services - 1.2%

     

AT&T Inc.

   

500,933

 

9,132,009

 

Lumen Technologies Inc.

   

64,254

b 

472,909

 

T-Mobile US Inc.

   

42,438

a 

6,431,903

 

Verizon Communications Inc.

   

293,859

 

10,981,511

 
    

27,018,332

 

Transportation - 1.6%

     

Alaska Air Group Inc.

   

7,706

a 

342,609

 

American Airlines Group Inc.

   

48,295

a 

684,823

 

C.H. Robinson Worldwide Inc.

   

8,662

 

846,451

 

CSX Corp.

   

151,152

 

4,392,477

 

18

 

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 99.2% (continued)

     

Transportation - 1.6% (continued)

     

Delta Air Lines Inc.

   

43,983

a 

1,492,343

 

Expeditors International of Washington Inc.

   

11,494

 

1,124,688

 

FedEx Corp.

   

16,522

 

2,648,146

 

J.B. Hunt Transport Services Inc.

   

5,971

 

1,021,459

 

Norfolk Southern Corp.

   

16,459

 

3,753,804

 

Old Dominion Freight Line Inc.

   

6,371

 

1,749,477

 

Southwest Airlines Co.

   

41,781

a 

1,518,739

 

Union Pacific Corp.

   

43,944

 

8,663,120

 

United Airlines Holdings Inc.

   

22,538

a 

970,937

 

United Parcel Service Inc., Cl. B

   

51,391

 

8,621,868

 
    

37,830,941

 

Utilities - 2.9%

     

Alliant Energy Corp.

   

17,773

 

927,217

 

Ameren Corp.

   

17,929

 

1,461,572

 

American Electric Power Co.

   

35,464

 

3,117,995

 

American Water Works Co.

   

12,859

 

1,868,927

 

Atmos Energy Corp.

   

9,553

 

1,017,872

 

CenterPoint Energy Inc.

   

45,197

 

1,293,086

 

CMS Energy Corp.

   

21,111

 

1,204,383

 

Consolidated Edison Inc.

   

25,156

 

2,212,722

 

Constellation Energy Corp.

   

23,024

 

2,176,689

 

Dominion Energy Inc.

   

59,279

 

4,147,752

 

DTE Energy Co.

   

13,297

 

1,490,727

 

Duke Energy Corp.

   

53,781

 

5,011,314

 

Edison International

   

25,940

 

1,557,438

 

Entergy Corp.

   

14,723

 

1,577,422

 

Evergy Inc.

   

16,344

 

999,109

 

Eversource Energy

   

24,246

 

1,849,485

 

Exelon Corp.

   

69,232

 

2,671,663

 

FirstEnergy Corp.

   

38,965

 

1,469,370

 

NextEra Energy Inc.

   

137,461

 

10,653,227

 

NiSource Inc.

   

27,992

 

719,114

 

NRG Energy Inc.

   

16,137

 

716,483

 

PG&E Corp.

   

104,261

a,b 

1,556,617

 

Pinnacle West Capital Corp.

   

7,891

 

530,354

 

PPL Corp.

   

52,795

 

1,398,540

 

Public Service Enterprise Group Inc.

   

35,449

 

1,987,625

 

Sempra Energy

   

21,678

 

3,272,077

 

The AES Corp.

   

46,884

 

1,226,485

 

The Southern Company

   

75,304

 

4,930,906

 

WEC Energy Group Inc.

   

22,397

 

2,045,518

 

19

 

STATEMENT OF INVESTMENTS (continued)

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 99.2% (continued)

     

Utilities - 2.9% (continued)

     

Xcel Energy Inc.

   

37,515

 

2,442,602

 
    

67,534,291

 

Total Common Stocks (cost $657,457,173)

   

2,283,523,405

 
  

1-Day
Yield (%)

     

Investment Companies - .6%

     

Registered Investment Companies - .6%

     

Dreyfus Institutional Preferred Government Plus Money Market Fund, Institutional Shares
(cost $14,479,303)

 

3.23

 

14,479,303

d 

 14,479,303

 
        

Investment of Cash Collateral for Securities Loaned - .1%

     

Registered Investment Companies - .1%

     

Dreyfus Institutional Preferred Government Plus Money Market Fund, SL Shares
(cost $1,547,539)

 

3.23

 

1,547,539

d 

 1,547,539

 

Total Investments (cost $673,484,015)

 

99.9%

 

2,299,550,247

 

Cash and Receivables (Net)

 

.1%

 

1,659,945

 

Net Assets

 

100.0%

 

2,301,210,192

 

a Non-income producing security.

b Security, or portion thereof, on loan. At October 31, 2022, the value of the fund’s securities on loan was $30,172,589 and the value of the collateral was $31,057,237, consisting of cash collateral of $1,547,539 and U.S. Government & Agency securities valued at $29,509,698. In addition, the value of collateral may include pending sales that are also on loan.

c Investment in real estate investment trust within the United States.

d Investment in affiliated issuer. The investment objective of this investment company is publicly available and can be found within the investment company’s prospectus.

  

Portfolio Summary (Unaudited)

Value (%)

Information Technology

26.1

Health Care

15.2

Financials

11.4

Consumer Discretionary

10.8

Industrials

8.2

Communication Services

7.3

Consumer Staples

6.9

Energy

5.3

Utilities

2.9

Real Estate

2.6

Materials

2.5

Investment Companies

.7

 

99.9

 Based on net assets.

See notes to financial statements.

20

 

       

Affiliated Issuers

   

Description

Value ($) 10/31/2021

Purchases ($)

Sales ($)

Value ($) 10/31/2022

Dividends/
Distributions ($)

 

Registered Investment Companies - .6%

  

Dreyfus Institutional Preferred Government Plus Money Market Fund, Institutional Shares - .6%

23,987,934

411,907,756

(421,416,387)

14,479,303

178,396

 

Investment of Cash Collateral for Securities Loaned - .1%

  

Dreyfus Institutional Preferred Government Plus Money Market Fund, SL Shares - .1%

-

31,569,968

(30,022,429)

1,547,539

40,591

†† 

Total - .7%

23,987,934

443,477,724

(451,438,816)

16,026,842

218,987

 

 Includes reinvested dividends/distributions.

†† Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

See notes to financial statements.

       

Futures

   

Description

Number of
Contracts

Expiration

Notional
Value ($)

Market
Value ($)

Unrealized Appreciation ($)

 

Futures Long

  

Standard & Poor's 500 E-mini

93

12/16/2022

17,520,659

18,055,950

535,291

 

Gross Unrealized Appreciation

 

535,291

 

See notes to financial statements.

21

 

STATEMENT OF ASSETS AND LIABILITIES

October 31, 2022

       

 

 

 

 

 

 

 

 

 

 

Cost

 

Value

 

Assets ($):

 

 

 

 

Investments in securities—See Statement of Investments
(including securities on loan, valued at $30,172,589)—Note 1(c):

 

 

 

Unaffiliated issuers

657,457,173

 

2,283,523,405

 

Affiliated issuers

 

16,026,842

 

16,026,842

 

Cash

 

 

 

 

2,105,361

 

Dividends and securities lending income receivable

 

1,749,763

 

Receivable for shares of Common Stock subscribed

 

1,545,881

 

Cash collateral held by broker—Note 4

 

960,000

 

 

 

 

 

 

2,305,911,252

 

Liabilities ($):

 

 

 

 

Due to BNY Mellon Investment Adviser, Inc.—Note 3(b)

 

298,227

 

Liability for securities on loan—Note 1(c)

 

1,547,539

 

Payable for investment securities purchased

 

1,488,597

 

Payable for shares of Common Stock redeemed

 

1,210,896

 

Payable for futures variation margin—Note 4

 

129,273

 

Directors’ fees and expenses payable

 

26,528

 

 

 

 

 

 

4,701,060

 

Net Assets ($)

 

 

2,301,210,192

 

Composition of Net Assets ($):

 

 

 

 

Paid-in capital

 

 

 

 

369,413,082

 

Total distributable earnings (loss)

 

 

 

 

1,931,797,110

 

Net Assets ($)

 

 

2,301,210,192

 

     

Shares Outstanding

 

 

(150 million shares of $.001 par value Common Stock authorized)

36,791,731

 

Net Asset Value Per Share ($)

 

62.55

 

 

 

 

 

 

See notes to financial statements.

 

 

  

 

22

 

STATEMENT OF OPERATIONS

Year Ended October 31, 2022

       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Income ($):

 

 

 

 

Income:

 

 

 

 

Cash dividends (net of $9,325 foreign taxes withheld at source):

 

Unaffiliated issuers

 

 

42,458,312

 

Affiliated issuers

 

 

178,396

 

Income from securities lending—Note 1(c)

 

 

40,591

 

Interest

 

 

3,359

 

Total Income

 

 

42,680,658

 

Expenses:

 

 

 

 

Management fee—Note 3(a)

 

 

5,465,690

 

Legal fees—Note 5

 

 

523,207

 

Directors’ fees—Note 3(a,c)

 

 

293,200

 

Loan commitment fees—Note 2

 

 

56,891

 

Interest expense—Note 2

 

 

24,531

 

Total Expenses

 

 

6,363,519

 

Less—Directors’ fees reimbursed by
BNY Mellon Investment Adviser, Inc.—Note 3(a)

 

 

(293,200)

 

Net Expenses

 

 

6,070,319

 

Net Investment Income

 

 

36,610,339

 

Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):

 

 

Net realized gain (loss) on investments

352,961,849

 

Net realized gain (loss) on futures

447,397

 

Net Realized Gain (Loss)

 

 

353,409,246

 

Net change in unrealized appreciation (depreciation) on investments

(826,360,876)

 

Net change in unrealized appreciation (depreciation) on futures

(478,028)

 

Net Change in Unrealized Appreciation (Depreciation)

 

 

(826,838,904)

 

Net Realized and Unrealized Gain (Loss) on Investments

 

 

(473,429,658)

 

Net (Decrease) in Net Assets Resulting from Operations

 

(436,819,319)

 

 

 

 

 

 

 

 

See notes to financial statements.

     

23

 

STATEMENT OF CHANGES IN NET ASSETS

          

 

 

 

 

Year Ended October 31,

 

 

 

 

2022

 

2021

 

Operations ($):

 

 

 

 

 

 

 

 

Net investment income

 

 

36,610,339

 

 

 

39,558,871

 

Net realized gain (loss) on investments

 

353,409,246

 

 

 

390,389,208

 

Net change in unrealized appreciation
(depreciation) on investments

 

(826,838,904)

 

 

 

652,392,911

 

Net Increase (Decrease) in Net Assets
Resulting from Operations

(436,819,319)

 

 

 

1,082,340,990

 

Distributions ($):

 

Distributions to shareholders

 

 

(382,611,312)

 

 

 

(135,846,648)

 

Capital Stock Transactions ($):

 

Net proceeds from shares sold

 

 

259,378,050

 

 

 

225,957,699

 

Distributions reinvested

 

 

279,388,472

 

 

 

93,178,557

 

Cost of shares redeemed

 

 

(692,248,939)

 

 

 

(757,604,416)

 

Increase (Decrease) in Net Assets
from Capital Stock Transactions

(153,482,417)

 

 

 

(438,468,160)

 

Total Increase (Decrease) in Net Assets

(972,913,048)

 

 

 

508,026,182

 

Net Assets ($):

 

Beginning of Period

 

 

3,274,123,240

 

 

 

2,766,097,058

 

End of Period

 

 

2,301,210,192

 

 

 

3,274,123,240

 

Capital Share Transactions (Shares):

 

Shares sold

 

 

3,826,978

 

 

 

3,059,939

 

Shares issued for distributions reinvested

 

 

3,711,252

 

 

 

1,381,720

 

Shares redeemed

 

 

(10,126,013)

 

 

 

(10,423,850)

 

Net Increase (Decrease) in Shares Outstanding

(2,587,783)

 

 

 

(5,982,191)

 

 

 

 

 

 

 

 

 

 

 

See notes to financial statements.

        

24

 

FINANCIAL HIGHLIGHTS

The following table describes the performance for the fiscal periods indicated. Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. These figures have been derived from the fund’s financial statements.

         
       
  

Year Ended October 31,

  

2022

2021

2020

2019

2018

Per Share Data ($):

      

Net asset value,
beginning of period

 

83.14

60.98

58.54

54.53

52.24

Investment Operations:

      

Net investment incomea

 

.93

.94

1.00

1.02

.94

Net realized and unrealized
gain (loss) on investments

 

(11.62)

24.32

4.45

6.06

2.74

Total from
Investment Operations

 

(10.69)

25.26

5.45

7.08

3.68

Distributions:

      

Dividends from
net investment income

 

(.98)

(.97)

(1.03)

(.97)

(.92)

Dividends from net realized
gain on investments

 

(8.92)

(2.13)

(1.98)

(2.10)

(.47)

Total Distributions

 

(9.90)

(3.10)

(3.01)

(3.07)

(1.39)

Net asset value, end of period

 

62.55

83.14

60.98

58.54

54.53

Total Return (%)

 

(14.78)

42.64

9.51

14.16

7.11

Ratios/Supplemental Data (%):

     

Ratio of total expenses to
average net assets

 

.23

.21

.21

.21

.21

Ratio of net expenses to
average net assets

 

.22

.20

.20

.20

.20

Ratio of net investment income

     

to average net assets

 

1.34

1.27

1.70

1.86

1.70

Portfolio Turnover Rate

 

1.84

3.27

2.56

4.53

3.20

Net Assets,
end of period ($ x 1,000)

 

2,301,210

3,274,123

2,766,097

2,726,019

2,545,990

a Based on average shares outstanding.

See notes to financial statements.

25

 

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

BNY Mellon Institutional S&P 500 Stock Index Fund (the “fund”) is a separate diversified series of BNY Mellon Investment Funds IV, Inc. (the “Company”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering four series, including the fund. The fund’s investment objective is to seek to match the total return of the S&P 500® Index. BNY Mellon Investment Adviser, Inc. (the “Adviser”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. BNY Mellon Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Adviser, is the distributor of the fund’s shares.

Class I shares are sold primarily to bank trust departments and other financial service providers (including BNY Mellon and its affiliates), acting on behalf of customers having a qualified trust or an investment account or relationship at such institution, and bear no Distribution or Shareholder Service Plan fees. Class I shares are offered without a front-end sales charge or a contingent deferred sales charge.

The Company accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund is an investment company and applies the accounting and reporting guidance of the FASB ASC Topic 946 Financial Services-Investment Companies. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The Company enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown. The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability

26

 

in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted quoted prices in active markets for identical investments.

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

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 necessarily an indication of the risk associated with investing in those securities.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:

The Company’s Board of Directors (the “Board”) has designated the Adviser as the fund’s valuation designee, effective September 8, 2022, to make all fair value determinations with respect to the fund’s portfolio investments, subject to the Board’s oversight and pursuant to Rule 2a-5 under the Act.

Investments in equity securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. For open short positions, asked prices are used for valuation purposes. Bid price is used when no asked price is available. Registered investment

27

 

NOTES TO FINANCIAL STATEMENTS (continued)

companies that are not traded on an exchange are valued at their net asset value. All of the preceding securities are generally categorized within Level 1 of the fair value hierarchy.

Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices. These securities are generally categorized within Level 2 of the fair value hierarchy.

Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant American Depository Receipts and futures. Utilizing these techniques may result in transfers between Level 1 and Level 2 of the fair value hierarchy.

When market quotations or official closing prices are not readily available, or are determined not to accurately reflect fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.

For securities where observable inputs are limited, assumptions about market activity and risk are used and such securities are generally categorized within Level 3 of the fair value hierarchy.

Futures, which are traded on an exchange, are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day and are generally categorized within Level 1 of the fair value hierarchy.

The following is a summary of the inputs used as of October 31, 2022 in valuing the fund’s investments:

28

 

       
 

Level 1-Unadjusted Quoted Prices

Level 2- Other Significant Observable Inputs

 

Level 3-Significant Unobservable Inputs

Total

 

Assets ($)

  

Investments in Securities:

  

Equity Securities - Common Stocks

2,283,523,405

-

 

-

2,283,523,405

 

Investment Companies

16,026,842

-

 

-

16,026,842

 

Other Financial Instruments:

  

Futures††

535,291

-

 

-

535,291

 

 See Statement of Investments for additional detailed categorizations, if any.

†† Amount shown represents unrealized appreciation (depreciation) at period end, but only variation margin on exchange-traded and centrally cleared derivatives, if any, are reported in the Statement of Assets and Liabilities.

(b) Foreign taxes: The fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, realized and unrealized capital gains on investments or certain foreign currency transactions. Foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the fund invests. These foreign taxes, if any, are paid by the fund and are reflected in the Statement of Operations, if applicable. Foreign taxes payable or deferred or those subject to reclaims as of October 31, 2022, if any, are disclosed in the fund’s Statement of Assets and Liabilities.

(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

Pursuant to a securities lending agreement with BNY Mellon, the fund may lend securities to qualified institutions. It is the fund’s policy that, at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by the Adviser, or U.S. Government and Agency securities. The fund is entitled to receive all dividends, interest and distributions on securities loaned, in addition to income earned as a result of the lending transaction. Should a borrower fail to return the securities in a timely manner, BNY Mellon is required to replace the securities for the benefit of

29

 

NOTES TO FINANCIAL STATEMENTS (continued)

the fund or credit the fund with the market value of the unreturned securities and is subrogated to the fund’s rights against the borrower and the collateral. Additionally, the contractual maturity of security lending transactions are on an overnight and continuous basis. During the period ended October 31, 2022, BNY Mellon earned $5,534 from the lending of the fund’s portfolio securities, pursuant to the securities lending agreement.

(d) Affiliated issuers: Investments in other investment companies advised by the Adviser are considered “affiliated” under the Act.

(e) Market Risk: The value of the securities in which the fund invests may be affected by political, regulatory, economic and social developments, and developments that impact specific economic sectors, industries or segments of the market. The value of a security may also decline due to general market conditions that are not specifically related to a particular company or industry, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates, changes to inflation, adverse changes to credit markets or adverse investor sentiment generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the fund. Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies world-wide. Recent examples include pandemic risks related to COVID-19 and aggressive measures taken world-wide in response by governments, including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines of large populations, and by businesses, including changes to operations and reducing staff.

(f) Dividends and distributions to shareholders: Dividends and distributions are recorded on the ex-dividend date. Dividends from net investment income are normally declared and paid quarterly. Dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”). To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

30

 

(g) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.

As of and during the period ended October 31, 2022, the fund did not have any liabilities for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended October 31, 2022, the fund did not incur any interest or penalties.

Each tax year in the four-year period ended October 31, 2022 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At October 31, 2022, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $9,768,465, undistributed capital gains $303,993,830 and unrealized appreciation $1,618,034,815.

The tax character of distributions paid to shareholders during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows: ordinary income $43,708,894 and $53,143,275, and long-term capital gains $338,902,418 and $82,703,373, respectively.

During the period ended October 31, 2022, as a result of permanent book to tax differences, primarily due to the tax treatment for treating a portion of the proceeds from redemptions as a distribution for tax purposes, the fund decreased total distributable earnings (loss) by $46,347,605 and increased paid-in capital by the same amount. Net assets and net asset value per share were not affected by this reclassification.

NOTE 2—Bank Lines of Credit:

The fund participates with other long-term open-end funds managed by the Adviser in a $823.5 million unsecured credit facility led by Citibank, N.A. (the “Citibank Credit Facility”) and a $300 million unsecured credit facility provided by BNY Mellon (the “BNYM Credit Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions (each, a “Facility”). The Citibank Credit Facility is available in two tranches: (i) Tranche A is in an amount equal to $688.5 million and is available to all long-term open-ended funds, including the fund, and (ii) Tranche B is an amount equal to $135 million and is available only to BNY Mellon Floating Rate Income Fund, a series of BNY Mellon

31

 

NOTES TO FINANCIAL STATEMENTS (continued)

Investment Funds IV, Inc. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for Tranche A of the Citibank Credit Facility and the BNYM Credit Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing.

The average amount of borrowings outstanding under the Facilities during the period ended October 31, 2022 was approximately $938,082 with a related weighted average annualized interest rate of 2.62%.

NOTE 3—Management Fee and Other Transactions with Affiliates:

(a) Pursuant to a management agreement with the Adviser, the Adviser provides or arranges for one or more third parties and/or affiliates to provide investment advisory, administrative, custody, fund accounting and transfer agency services to the fund. The Adviser also directs the investments of the fund in accordance with its investment objective, policies and limitations. For these services, the fund is contractually obligated to pay the Adviser a fee, calculated daily and paid monthly, at an annual rate of .20% of the value of the fund’s average daily net assets. Out of its fee, the Adviser pays all of the expenses of the fund except brokerage fees, taxes, interest expense, commitment fees on borrowings, fees and expenses of non-interested Board Members (including counsel fees) and extraordinary expenses. In addition, the Adviser is required to reduce its fee in an amount equal to the fund’s allocable portion of fees and expenses of the non-interested Board Members (including counsel fees). During the period ended October 31, 2022, fees reimbursed by the Adviser amounted to $293,200.

(b) The fund has an arrangement with The Bank of New York Mellon (the “Custodian”), a subsidiary of BNY Mellon and an affiliate of the Adviser, whereby the fund will receive interest income or be charged overdraft fees when cash balances are maintained. For financial reporting purposes, the fund includes this interest income and overdraft fees, if any, as interest income in the Statement of Operations.

The components of “Due to BNY Mellon Investment Adviser, Inc.” in the Statement of Assets and Liabilities consist of: management fee of $378,227, which are offset against an expense reimbursement currently in effect in the amount of $80,000.

(c) Each Board member also serves as a Board member of other funds in the BNY Mellon Family of Funds complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

32

 

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities and futures, during the period ended October 31, 2022, amounted to $49,910,732 and $540,879,879, respectively.

Derivatives: A derivative is a financial instrument whose performance is derived from the performance of another asset. The SEC recently adopted Rule 18f-4 under the Act, which, effective August 18, 2022, regulates the use of derivatives transactions for certain funds registered under the Act. The fund is deemed a “limited” derivatives user under the rule and is required to limit its derivatives exposure so that the total notional value of derivatives does not exceed 10% of fund’s net assets, and is subject to certain reporting requirements. Each type of derivative instrument that was held by the fund during the period ended October 31, 2022 is discussed below.

Futures: In the normal course of pursuing its investment objective, the fund is exposed to market risk, including equity price risk, as a result of changes in value of underlying financial instruments. The fund invests in futures in order to manage its exposure to or protect against changes in the market. A futures contract represents a commitment for the future purchase or a sale of an asset at a specified date. Upon entering into such contracts, these investments require initial margin deposits with a counterparty, which consist of cash or cash equivalents. The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses which are recorded in the Statement of Operations. When the contracts are closed, the fund recognizes a realized gain or loss which is reflected in the Statement of Operations. There is minimal counterparty credit risk to the fund with futures since they are exchange traded, and the exchange guarantees the futures against default. Futures open at October 31, 2022 are set forth in the Statement of Investments.

The following summarizes the average market value of derivatives outstanding during the period ended October 31, 2022:

   

 

 

Average Market Value ($)

Equity futures

 

21,232,433

At October 31, 2022, the cost of investments for federal income tax purposes was $681,515,432; accordingly, accumulated net unrealized appreciation on investments was $1,618,034,815, consisting of

33

 

NOTES TO FINANCIAL STATEMENTS (continued)

$1,662,608,780 gross unrealized appreciation and $44,573,965 gross unrealized depreciation.

NOTE 5—Shareholder Demand Review:

On July 30, 2021, the fund Board received a demand letter sent on behalf of a shareholder, alleging that the fund paid excessive management fees to the Adviser, and demanding that the Board investigate the compensation paid by the fund to the Adviser and take certain other actions.  In response to the demand letter, the Board established a Demand Review Committee (the “Committee”) of independent members of the Board to investigate the shareholder’s claims with the assistance of independent counsel. At the fund’s fourth quarter 2022 Board meeting, the Committee informed the Board that it had concluded its investigation, presented the findings of its investigation, and recommended that the Board reject taking any of the actions outlined in the demand letter. The Board accepted the Committee’s recommendation and voted to reject taking the actions outlined in the demand letter. As of the end of the reporting period, the fund paid $523,207 in extraordinary expense disclosed as Legal fees within the Statement of Operations.

34

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of the Fund and Board of Directors of
BNY Mellon Investment Funds IV, Inc. :

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of BNY Mellon Institutional S&P 500 Stock Index Fund (the Fund), a series of BNY Mellon Investment Funds IV, Inc., including the statement of investments, as of October 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements), and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of October 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of October 31, 2022, by correspondence with the custodian and brokers or by other appropriate auditing procedures when replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more BNY Mellon Investment Adviser, Inc. investment companies since 1994.

New York, New York
December 23, 2022

35

 

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the fund reports the maximum amount allowable, but not less than $42,853,823 as ordinary income dividends paid during the year ended October 31, 2022 as qualified dividend income in accordance with Section 854(b)(1)(B) of the Internal Revenue Code. Also, the fund reports the maximum amount allowable but not less than 96.74% of ordinary income dividends paid during the year ended October 31, 2022 as eligible for the corporate dividends received deduction provided under Section 243 of the Internal Revenue Code in accordance with Section 854(b)(1)(A) of the Internal Revenue Code. Shareholders will receive notification in early 2023 of the percentage applicable to the preparation of their 2022 income tax returns. Also the fund reports the maximum amount allowable but not less than $8.7739 per share as a capital gain dividend in accordance with Section 852(b)(3)(C) of the Internal Revenue Code. Also, the fund reports the maximum amount allowable but not less than $.1501 as a short-term capital gain dividend paid on December 22, 2021 in accordance with Sections 871(k)(2) and 881(e) of the Internal Revenue Code.

36

 

BOARD MEMBERS INFORMATION (Unaudited)

Independent Board Members

Joseph S. DiMartino (79)

Chairman of the Board (1999)

Principal Occupation During Past 5 Years:

· Director or Trustee of funds in the BNY Mellon Family of Funds and certain other entities (as described in the fund’s Statement of Additional Information) (1995-Present)

Other Public Company Board Memberships During Past 5 Years:

· CBIZ, Inc., a public company providing professional business services, products and solutions, Director (1997-Present)

No. of Portfolios for which Board Member Serves: 94

———————

Francine J. Bovich (71)

Board Member (2012)

Principal Occupation During Past 5 Years:

· The Bradley Trusts, private trust funds, Trustee (2011-Present)

Other Public Company Board Memberships During Past 5 Years:

· Annaly Capital Management, Inc., a real estate investment trust, Director (2014-Present)

No. of Portfolios for which Board Member Serves: 54

———————

Andrew J. Donohue (72)

Board Member (2019)

Principal Occupation During Past 5 Years:

· Attorney, Solo Law Practice (2019-Present)

· Shearman & Sterling LLP. a law firm, Of Counsel (2017-2019)

· Chief of Staff to the Chair of the SEC (2015-2017)

Other Public Company Board Memberships During Past 5 Years:

· Oppenheimer Funds (58 funds), Director (2017-2019)

No. of Portfolios for which Board Member Serves: 44

———————

37

 

BOARD MEMBERS INFORMATION (Unaudited) (continued)

Kenneth A. Himmel (76)

Board Member (1993)

Principal Occupation During Past 5 Years:

· Gulf Related, an international real estate development company, Managing Partner (2010-Present)

· Related Urban Development, a real estate development company, President and Chief Executive Officer (1996-Present)

· American Food Management, a restaurant company, Chief Executive Officer (1983-Present)

· Himmel & Company, a real estate development company, President and Chief Executive Officer (1980-Present)

No. of Portfolios for which Board Member Serves: 22

———————

Roslyn M. Watson (73)

Board Member (1993)

Principal Occupation During Past 5 Years:

· Watson Ventures, Inc., a real estate investment company, Principal (1993-Present)

Other Public Company Board Memberships During Past 5 Years:

· American Express Bank, FSB, Director (1993-2018)

No. of Portfolios for which Board Member Serves: 44

———————

Benaree Pratt Wiley (76)

Board Member (1998)

Principal Occupation During Past 5 Years:

· The Wiley Group, a firm specializing in strategy and business development, Principal (2005-Present)

Other Public Company Board Memberships During Past 5 Years:

· CBIZ, Inc., a public company providing professional business services, products and solutions, Director (2008-Present)

· Blue Cross-Blue Shield of Massachusetts, Director (2004-2020)

No. of Portfolios for which Board Member Serves: 61

———————

38

 

Interested Board Member

Bradley Skapyak (63)

Board Member (2021)

Principal Occupation During Past 5 Years:

· Chief Operating Officer and Director of The Dreyfus Corporation (2009-2019)

· Chief Executive Officer and Director of the Distributor (2016-2019)

· Chairman and Director of The Dreyfus Transfer Agent, Inc. (2011-2019)

· Senior Vice President of The Bank of New York Mellon (2007-2019)

No. of Portfolios for which Board Member Serves: 22

Mr. Skapyak is deemed to be an Interested Board Member of the fund as a result of his ownership of unvested restricted stock units of BNY Mellon.

———————

The address of the Board Members and Officers is c/o BNY Mellon Investment Adviser, Inc., 240 Greenwich Street, New York, New York 10286. Additional information about each Board Member is available in the fund’s Statement of Additional Information which can be obtained from the Adviser free of charge by calling this toll free number: 1-800-373-9387.

39

 

OFFICERS OF THE FUND (Unaudited)

DAVID DIPETRILLO, President since January 2021.

Vice President and Director of the Adviser since February 2021; Head of North America Product, BNY Mellon Investment Management since January 2018; and Director of Product Strategy, BNY Mellon Investment Management from January 2016 to December 2017. He is an officer of 55 investment companies (comprised of 109 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 44 years old and has been an employee of BNY Mellon since 2005.

JAMES WINDELS, Treasurer since November 2001.

Vice President of the Adviser since September 2020; and Director–BNY Mellon Fund Administration. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 64 years old and has been an employee of the Adviser since April 1985.

PETER M. SULLIVAN, Chief Legal Officer since July 2021 and Vice President and Assistant Secretary since March 2019.

Chief Legal Officer of the Adviser and Associate General Counsel of BNY Mellon since July 2021; Senior Managing Counsel of BNY Mellon from December 2020 to July 2021; and Managing Counsel of BNY Mellon from March 2009 to December 2020. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 54 years old and has been an employee of BNY Mellon since April 2004.

JAMES BITETTO, Vice President since August 2005 and Secretary since February 2018.

Senior Managing Counsel of BNY Mellon since December 2019; Managing Counsel of BNY Mellon from April 2014 to December 2019; and Secretary of the Adviser. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 56 years old and has been an employee of the Adviser since December 1996.

DEIRDRE CUNNANE, Vice President and Assistant Secretary since March 2019.

Managing Counsel of BNY Mellon since December 2021, Counsel of BNY Mellon from August 2018 to December 2021; and Senior Regulatory Specialist at BNY Mellon Investment Management Services from February 2016 to August 2018. She is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 32 years old and has been an employee of the Adviser since August 2018.

SARAH S. KELLEHER, Vice President and Assistant Secretary since April 2014.

Vice President of BNY Mellon ETF Investment Adviser; LLC since February 2020; Senior Managing Counsel of BNY Mellon since September 2021; Managing Counsel of BNY Mellon from December 2017 to September 2021; and Senior Counsel of BNY Mellon from March 2013 to December 2017. She is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 47 years old and has been an employee of the Adviser since March 2013.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.

Senior Managing Counsel of BNY Mellon. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 57 years old and has been an employee of the Adviser since October 1990.

AMANDA QUINN, Vice President and Assistant Secretary since March 2020.

Counsel of BNY Mellon since June 2019; Regulatory Administration Manager at BNY Mellon Investment Management Services from September 2018 to May 2019; and Senior Regulatory Specialist at BNY Mellon Investment Management Services from April 2015 to August 2018. She is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 37 years old and has been an employee of the Adviser since June 2019.

40

 

NATALYA ZELENSKY, Vice President and Assistant Secretary since March 2017.

Chief Compliance Officer since August 2021 and Vice President since February 2020 of BNY Mellon ETF Investment Adviser, LLC; Chief Compliance Officer since August 2021 and Vice President and Assistant Secretary since February 2020 of BNY Mellon ETF Trust; Managing Counsel of BNY Mellon from December 2019 to August 2021; Counsel of BNY Mellon from May 2016 to December 2019; and Assistant Secretary of the Adviser from April 2018 to August 2021. She is an officer of 55 investment companies (comprised of 129 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 37 years old and has been an employee of BNY Mellon since May 2016.

DANIEL GOLDSTEIN, Vice President since March 2022.

Vice President and Head of Product Development of North America Product, BNY Mellon Investment Management since January 2018; Co-Head of Product Management, Development & Oversight of North America Product, BNY Mellon Investment Management from January 2010 to January 2018; and Senior Vice President, Development & Oversight of North America Product, BNY Mellon Investment Management since 2010. He is an officer of 55 investment companies (comprised of 109 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 53 years old and has been an employee of the Distributor since 1991.

JOSEPH MARTELLA, Vice President since March 2022.

Vice President and Head of Product Management of North America Product, BNY Mellon Investment Management since January 2018; Director of Product Research and Analytics of North America Product, BNY Mellon Investment Management from January 2010 to January 2018; and Senior Vice President of North America Product, BNY Mellon Investment Management since 2010. He is an officer of 55 investment companies (comprised of 109 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 46 years old and has been an employee of the Distributor since 1999.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager–BNY Mellon Fund Administration. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 54 years old and has been an employee of the Adviser since April 1991.

ROBERT SALVIOLO, Assistant Treasurer since July 2007.

Senior Accounting Manager–BNY Mellon Fund Administration. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 55 years old and has been an employee of the Adviser since June 1989.

ROBERT SVAGNA, Assistant Treasurer since December 2002.

Senior Accounting Manager–BNY Mellon Fund Administration. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 55 years old and has been an employee of the Adviser since November 1990.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the BNY Mellon Family of Funds and BNY Mellon Funds Trust since 2004; and Chief Compliance Officer of the Adviser from 2004 until June 2021. He is an officer of 55 investment companies (comprised of 115 portfolios) managed by the Adviser. He is 65 years old.

CARIDAD M. CAROSELLA, Anti-Money Laundering Compliance Officer since January 2016.

Anti-Money Laundering Compliance Officer of the BNY Mellon Family of Funds and BNY Mellon Funds Trust. She is an officer of 48 investment companies (comprised of 122 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 54 years old and has been an employee of the Distributor since 1997.

41

 

For More Information

BNY Mellon Institutional S&P 500 Stock Index Fund

240 Greenwich Street

New York, NY 10286

Adviser

BNY Mellon Investment Adviser, Inc.

240 Greenwich Street

New York, NY 10286

Custodian

The Bank of New York Mellon

240 Greenwich Street

New York, NY 10286

Transfer Agent &
Dividend Disbursing Agent

BNY Mellon Transfer, Inc.

240 Greenwich Street

New York, NY 10286

Distributor

BNY Mellon Securities Corporation

240 Greenwich Street

New York, NY 10286

  

Ticker Symbol:

DSPIX

Telephone Call your financial representative or 1-800-373-9387

Mail The BNY Mellon Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144

E-mail Send your request to info@bnymellon.com

Internet Information can be viewed online or downloaded at www.im.bnymellon.com

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-PORT. The fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov.

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the fund voted these proxies for the most recent 12-month period ended June 30 is available at www.im.bnymellon.com and on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-373-9387.

  

© 2022 BNY Mellon Securities Corporation
0713AR1022

 

BNY Mellon Tax Managed Growth Fund

 

ANNUAL REPORT

October 31, 2022

 

 

 

Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.im.bnymellon.com and sign up for eCommunications. It’s simple and only takes a few minutes.

 

The views expressed in this report reflect those of the portfolio manager(s) only through the end of the period covered and do not necessarily represent the views of BNY Mellon Investment Adviser, Inc. or any other person in the BNY Mellon Investment Adviser, Inc. organization. Any such views are subject to change at any time based upon market or other conditions and BNY Mellon Investment Adviser, Inc. disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a fund in the BNY Mellon Family of Funds are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any fund in the BNY Mellon Family of Funds.

 

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

 

Contents

THE FUND

  

Discussion of Fund Performance

2

Fund Performance

5

Understanding Your Fund’s Expenses

7

Comparing Your Fund’s Expenses
With Those of Other Funds

7

Statement of Investments

8

Statement of Assets and Liabilities

12

Statement of Operations

13

Statement of Changes in Net Assets

14

Financial Highlights

16

Notes to Financial Statements

19

Report of Independent Registered
Public Accounting Firm

29

Important Tax Information

30

Proxy Results

31

Information About the Approval of
the Fund’s New Sub-Investment
Advisory Agreement

32

Board Members Information

38

Officers of the Fund

41

FOR MORE INFORMATION

 

Back Cover

 

DISCUSSION OF FUND PERFORMANCE (Unaudited)

For the period from November 1, 2021, through October 31, 2022, as provided by portfolio managers Alan R. Christensen, Catherine P. Crain, W. Gentry Lee, Jr., Christopher B. Sarofim, and Charles E. Sheedy of Fayez Sarofim & Co., sub-adviser.

Market and Fund Performance Overview

For the 12-month period ended October 31, 2022, BNY Mellon Tax Managed Growth Fund’s (the “fund”) Class A shares produced a total return of −18.09%, Class C shares returned −18.70% and Class I shares returned −17.90%.1 In comparison, the S&P 500® Index (the “Index”), the fund’s benchmark, returned −14.60% for the same period.2

U.S. equities declined during the reporting period in response to inflation, tightening monetary policy and concerns about a potentially slowing economy. The fund lagged its benchmark due primarily to unfavorable security selection.

The Fund’s Investment Approach

The fund seeks long-term capital appreciation consistent with minimizing realized capital gains. To pursue its goal, the fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in common stocks and employs a tax-managed strategy, which is an approach to managing a fund that seeks to minimize capital gains-tax liabilities.

In choosing stocks, the fund’s portfolio managers first identify economic sectors that they believe will expand over the next three to five years or longer. Using fundamental analysis, the fund’s portfolio managers then seek companies within these sectors that have dominant positions in their industries, and that have demonstrated sustained patterns of profitability, strong balance sheets, an expanding global presence and the potential to achieve predictable, above-average earnings growth. The fund’s portfolio managers also are alert to companies that they consider undervalued in terms of current earnings, assets or growth prospects.

The fund may invest in U.S. dollar-denominated American depositary receipts (ADRs). The fund attempts to enhance after-tax returns by minimizing its annual taxable distributions to shareholders. To do so, the fund employs a “buy-and hold” investment strategy, which generally has resulted in an annual portfolio turnover rate of below 15%.

Markets Hindered by Inflation, Tightening Monetary Policy and Growth Concerns

The reporting period was defined by a significant shift from positive to negative investor sentiment, which led to steep declines in the equity market. The Index reached new all-time highs in early January of 2022 before concerns over high inflation, monetary policy normalization, and the Russia-Ukraine conflict turned investor sentiment negative.

Inflation continued the upward trend that began in 2021 and ultimately reached a multidecade high of 9.1% in June of 2022, as measured by the annual headline Consumer Price Index, worrying consumers and investors alike. In response to this persistently high inflation, the Federal Reserve (“Fed”) shifted its policy from helping the economy recover after the COVID-19 shutdowns to taming high inflation by raising interest rates and reducing its balance sheet. Citing a strong economy and noting a sense of urgency, the Fed

2

 

began to implement rate hikes in March 2022. Higher rates are intended to help tame inflation as consumers and businesses cut back on consumption and investments due to higher borrowing costs. But an overly aggressive approach could go too far and tip the economy into a recession. The ultimate result of the Fed’s monetary tightening policy continues to be debated, with a recession as the worst-case scenario and a “soft landing” as the best-case scenario.

The adverse impact of the Russia-Ukraine conflict on the global supply chain also continued to weigh on investor sentiment. The U.S. and major economies in Europe and Asia imposed sanctions against Russia for its invasion, exacerbating the already high price of commodities such as wheat and crude oil.

As markets digested the winding down of pandemic-era accommodative monetary policies, the growth outlook has been dampened by the intertwining issues of supply-chain disruptions, COVID-19 lockdowns and inflation. As 2022 has progressed, inflation data and the Fed’s monetary tightening policies dominated the market narrative. While some investors were optimistic that a downtick in inflation would compel the Fed to pivot away from its monetary tightening path, Chairman Powell rejected any notion of a pivot and shifted expectations toward a prolonged period of restrictive monetary policy and slower growth. Slower growth prospects, supply-chain concerns, and higher interest rates for longer negatively impacted stock valuations.

Within the S&P 500, the energy sector was a standout and gained over 60% during the period, driven by high energy prices. Several other sectors were challenged, with the communication services, consumer discretionary and real estate sectors performing the worst.

Stock Selection Hampered Performance

The fund underperformed the S&P 500 Index during the period as a negative stock selection effect outweighed a positive allocation effect. In the communication services sector, a negative allocation and stock selection effect detracted from fund results. In the health care sector, the combination of the fund’s holdings trailing their sector peers and an underweight allocation resulted in an overall negative contribution for the period. Stock selection was also a detractor in the financial sector. The top detractors from relative performance included Meta Platforms Inc., Microsoft Corp., Amazon.com Inc., Alphabet Inc. and Estee Lauder Companies.

On a more positive note, the fund was a beneficiary of positive stock selection and allocation effects stemming from its overweight allocation to the energy sector, which was the best-performing sector in the Index. In the consumer discretionary sector, the fund also benefited from positive allocation and selection effects as its holdings outpaced the Index. The fund’s strategic holdings in the information technology sector also contributed positively to performance. The top contributors to relative performance included Chevron Corp., Hess Corp., UnitedHealth Group Inc., Exxon Mobil Corp. and The Progressive Corp.

A Focus on Quality

We expect markets to be turbulent as we endure a longer period of monetary policy tightening, which can result in strains on the economy. As the fund has done in its long history, it remains focused on companies with solid pricing power, high margins and secure

3

 

DISCUSSION OF FUND PERFORMANCE (Unaudited) (continued)

balance sheets. We believe the earnings and cash flow streams of these companies should remain resilient. In the current environment, capital allocation and operational excellence remain paramount, as missteps are being punished quickly.

Although we do not see reasons to be overly aggressive while the Fed is hiking rates, we are beginning to see more attractive valuations in companies that we believe may have unique competitive positioning and advantages. It is easy to be pessimistic, but we are reminded that we have been through many difficult periods through seven decades of market history. In addition, it is important to remember that lower valuations and share prices tend to, typically, improve the opportunity for future returns. We remain dedicated to identifying the best businesses and management teams at attractive prices.

November 15, 2022

Effective June 1, 2022, Fayez Sarofim no longer serves as a portfolio manager of the fund.

1  Total return includes reinvestment of dividends and any capital gains paid and does not take into consideration the maximum initial sales charge in the case of Class A shares or the applicable contingent deferred sales charge imposed on redemptions in the case of Class C shares. Had these charges been reflected, returns would have been lower. Past performance is no guarantee of future results. Share price and investment return fluctuate such that upon redemption, fund shares may be worth more or less than their original cost.

2  Source: Lipper Inc. — The S&P 500® Index is widely regarded as the best single gauge of large-cap U.S. equities. The Index includes 500 leading companies and captures approximately 80% coverage of available market capitalization. Investors cannot invest directly in any index.

Investing in foreign denominated and/or domiciled securities involves special risks, including changes in currency exchange rates, political, economic, and social instability, limited company information, differing auditing and legal standards, and less market liquidity. These risks generally are greater with emerging market countries.

Equities are subject generally to market, market sector, market liquidity, issuer and investment style risks, among other factors, to varying degrees, all of which are more fully described in the fund’s prospectus.

References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be and should not be interpreted as recommendations.

Recent market risks include pandemic risks related to COVID-19. The effects of COVID-19 have contributed to increased volatility in global markets and will likely affect certain countries, companies, industries and market sectors more dramatically than others. To the extent the fund may overweight its investments in certain countries, companies, industries or market sectors, such positions will increase the fund’s exposure to risk of loss from adverse developments affecting those countries, companies, industries or sectors.

4

 

FUND PERFORMANCE (Unaudited)


Comparison of change in value of a $10,000 investment in Class A shares, Class C shares and Class I shares of BNY Mellon Tax Managed Growth Fund with a hypothetical investment of $10,000 in the S&P 500
® Index (the “Index”).

 Source: Lipper Inc.

Past performance is not predictive of future performance.

The above graph compares a hypothetical investment of $10,000 made in each of the Class A shares, Class C shares and Class I shares of BNY Mellon Tax Managed Growth Fund on 10/31/12 to a hypothetical investment of $10,000 made in the Index on that date. All dividends and capital gain distributions are reinvested.

The fund’s performance shown in the line graph above takes into account the maximum initial sales charge on Class A shares and all other applicable fees and expenses on all classes. The Index is widely regarded as the best single gauge of large-cap U.S. equities. The Index includes 500 leading companies and captures approximately 80% coverage of available market capitalization. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

5

 

FUND PERFORMANCE (Unaudited) (continued)

    

Average Annual Total Returns as of 10/31/2022

 

1 Year

5 Years

10 Years

Class A shares

   

with maximum sales charge (5.75%)

-22.80%

9.05%

9.37%

without sales charge

-18.09%

10.35%

10.02%

Class C shares

   

with applicable redemption charge

-19.48%

9.53%

9.20%

without redemption

-18.70%

9.53%

9.20%

Class I shares

-17.90%

10.64%

10.30%

S&P 500® Index

-14.60%

10.44%

12.78%

 The maximum contingent deferred sales charge for Class C shares is 1% for shares redeemed within one year of the date of purchase.

The performance data quoted represents past performance, which is no guarantee of future results. Share price and investment return fluctuate and an investor’s shares may be worth more or less than original cost upon redemption. Current performance may be lower or higher than the performance quoted. Go to www.im.bnymellon.com for the fund’s most recent month-end returns.

The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. In addition to the performance of Class A shares shown with and without a maximum sales charge, the fund’s performance shown in the table takes into account all other applicable fees and expenses on all classes.

6

 

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in BNY Mellon Tax Managed Growth Fund from May 1, 2022 to October 31, 2022. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

      

Expenses and Value of a $1,000 Investment

 

Assume actual returns for the six months ended October 31, 2022

 

 

 

 

 

 

 

 

 

Class A

Class C

Class I

 

Expenses paid per $1,000

$5.87

$9.51

$4.65

 

Ending value (after expenses)

$939.40

$935.70

$940.40

 

COMPARING YOUR FUND’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (“SEC”) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

      

Expenses and Value of a $1,000 Investment

 

Assuming a hypothetical 5% annualized return for the six months ended October 31, 2022

 

 

 

 

 

 

 

 

 

Class A

Class C

Class I

 

Expenses paid per $1,000

$6.11

$9.91

$4.84

 

Ending value (after expenses)

$1,019.16

$1,015.38

$1,020.42

 

Expenses are equal to the fund’s annualized expense ratio of 1.20% for Class A, 1.95% for Class C and .95% for Class I, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

7

 

STATEMENT OF INVESTMENTS

October 31, 2022

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 99.3%

     

Banks - 2.3%

     

JPMorgan Chase & Co.

   

22,100

 

 2,781,948

 

Capital Goods - 1.4%

     

Otis Worldwide Corp.

   

6,315

 

446,092

 

Raytheon Technologies Corp.

   

14,080

 

1,335,066

 
    

1,781,158

 

Commercial & Professional Services - .5%

     

Verisk Analytics Inc.

   

3,435

 

 628,021

 

Consumer Durables & Apparel - 1.1%

     

NIKE Inc., Cl. B

   

14,460

 

 1,340,153

 

Consumer Services - 4.4%

     

Marriott International Inc., Cl. A

   

13,100

 

2,097,441

 

McDonald's Corp.

   

12,190

 

3,323,725

 
    

5,421,166

 

Diversified Financials - 5.8%

     

BlackRock Inc.

   

5,365

 

3,465,307

 

Intercontinental Exchange Inc.

   

21,415

 

2,046,632

 

S&P Global Inc.

   

5,065

 

1,627,131

 
    

7,139,070

 

Energy - 10.9%

     

Chevron Corp.

   

35,590

 

6,438,231

 

Exxon Mobil Corp.

   

22,475

 

2,490,455

 

Hess Corp.

   

32,225

 

4,546,303

 
    

13,474,989

 

Food, Beverage & Tobacco - 9.2%

     

Altria Group Inc.

   

23,105

 

1,069,068

 

Nestle SA, ADR

   

22,085

 

2,400,860

 

PepsiCo Inc.

   

13,885

 

2,521,238

 

Philip Morris International Inc.

   

27,935

 

2,565,830

 

The Coca-Cola Company

   

46,405

 

2,777,339

 
    

11,334,335

 

Health Care Equipment & Services - 7.6%

     

Abbott Laboratories

   

28,560

 

2,825,727

 

Intuitive Surgical Inc.

   

5,480

a 

1,350,656

 

UnitedHealth Group Inc.

   

9,385

 

5,210,083

 
    

9,386,466

 

Household & Personal Products - 3.1%

     

The Estee Lauder Companies, Cl. A

   

19,000

 

 3,809,310

 

Insurance - 1.3%

     

The Progressive Corp.

   

12,675

 

 1,627,470

 

Materials - 3.2%

     

Air Products & Chemicals Inc.

   

11,660

 

2,919,664

 

8

 

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 99.3% (continued)

     

Materials - 3.2% (continued)

     

The Sherwin-Williams Company

   

4,850

 

1,091,396

 
    

4,011,060

 

Media & Entertainment - 5.6%

     

Alphabet Inc., Cl. C

   

37,460

a 

3,545,964

 

Comcast Corp., Cl. A

   

50,810

 

1,612,709

 

Meta Platforms Inc., Cl. A

   

14,110

a 

1,314,488

 

The Walt Disney Company

   

3,897

a 

415,186

 
    

6,888,347

 

Pharmaceuticals Biotechnology & Life Sciences - 4.6%

     

Johnson & Johnson

   

7,450

 

1,296,076

 

Novo Nordisk A/S, ADR

   

34,655

 

3,771,850

 

Zoetis Inc.

   

4,450

 

670,971

 
    

5,738,897

 

Retailing - 3.5%

     

Amazon.com Inc.

   

42,625

a 

 4,366,505

 

Semiconductors & Semiconductor Equipment - 7.1%

     

ASML Holding NV

   

7,240

 

3,420,321

 

Texas Instruments Inc.

   

33,765

 

5,423,672

 
    

8,843,993

 

Software & Services - 16.8%

     

Adobe Inc.

   

3,650

a 

1,162,525

 

Automatic Data Processing Inc.

   

4,795

 

1,158,952

 

Gartner Inc.

   

2,150

a 

649,128

 

Intuit Inc.

   

4,505

 

1,925,887

 

Mastercard Inc., Cl. A

   

4,025

 

1,320,924

 

Microsoft Corp.

   

42,300

 

9,819,099

 

Visa Inc., Cl. A

   

23,150

b 

4,795,754

 
    

20,832,269

 

Technology Hardware & Equipment - 7.1%

     

Apple Inc.

   

57,290

 

 8,784,849

 

Transportation - 3.8%

     

Canadian Pacific Railway Ltd.

   

41,080

 

3,060,049

 

Union Pacific Corp.

   

8,245

 

1,625,419

 
    

4,685,468

 

Total Common Stocks (cost $49,582,489)

   

122,875,474

 

9

 

STATEMENT OF INVESTMENTS (continued)

        
 

Description

 

1-Day
Yield (%)

 

Shares

 

Value ($)

 

Investment Companies - .8%

     

Registered Investment Companies - .8%

     

Dreyfus Institutional Preferred Government Plus Money Market Fund, Institutional Shares
(cost $962,357)

 

3.23

 

962,357

c 

 962,357

 

Total Investments (cost $50,544,846)

 

100.1%

 

123,837,831

 

Liabilities, Less Cash and Receivables

 

(.1%)

 

(74,792)

 

Net Assets

 

100.0%

 

123,763,039

 

ADR—American Depository Receipt

a Non-income producing security.

b Security, or portion thereof, on loan. At October 31, 2022, the value of the fund’s securities on loan was $4,747,693 and the value of the collateral was $4,893,919, consisting of U.S. Government & Agency securities. In addition, the value of collateral may include pending sales that are also on loan.

c Investment in affiliated issuer. The investment objective of this investment company is publicly available and can be found within the investment company’s prospectus.

  

Portfolio Summary (Unaudited)

Value (%)

Information Technology

31.1

Consumer Staples

12.2

Health Care

12.2

Energy

10.9

Financials

9.3

Consumer Discretionary

9.0

Industrials

5.7

Communication Services

5.6

Materials

3.3

Investment Companies

.8

 

100.1

 Based on net assets.

See notes to financial statements.

       

Affiliated Issuers

   

Description

Value ($) 10/31/2021

Purchases ($)

Sales ($)

Value ($) 10/31/2022

Dividends/
Distributions ($)

 

Registered Investment Companies - .8%

  

Dreyfus Institutional Preferred Government Plus Money Market Fund, Institutional Shares - .8%

1,160,287

13,377,099

(13,575,029)

962,357

8,918

 

10

 

       

Description

Value ($) 10/31/2021

Purchases ($)

Sales ($)

Value ($) 10/31/2022

Dividends/
Distributions ($)

 

Investment of Cash Collateral for Securities Loaned - .0%

  

Dreyfus Institutional Preferred Government Plus Money Market Fund, SL Shares - .0%

3,259,382

14,352,060

(17,611,442)

-

8,629

†† 

Total - .8%

4,419,669

27,729,159

(31,186,471)

962,357

17,547

 

 Includes reinvested dividends/distributions.

†† Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

See notes to financial statements.

11

 

STATEMENT OF ASSETS AND LIABILITIES

October 31, 2022

       

 

 

 

 

 

 

 

 

 

 

Cost

 

Value

 

Assets ($):

 

 

 

 

Investments in securities—See Statement of Investments
(including securities on loan, valued at $4,747,693)—Note 1(c):

 

 

 

Unaffiliated issuers

49,582,489

 

122,875,474

 

Affiliated issuers

 

962,357

 

962,357

 

Cash

 

 

 

 

4,313

 

Dividends and securities lending income receivable

 

80,038

 

Tax reclaim receivable—Note 1(b)

 

39,639

 

Receivable for shares of Common Stock subscribed

 

1,505

 

 

 

 

 

 

123,963,326

 

Liabilities ($):

 

 

 

 

Due to BNY Mellon Investment Adviser, Inc. and affiliates—Note 3(c)

 

117,352

 

Payable for shares of Common Stock redeemed

 

81,101

 

Directors’ fees and expenses payable

 

1,834

 

 

 

 

 

 

200,287

 

Net Assets ($)

 

 

123,763,039

 

Composition of Net Assets ($):

 

 

 

 

Paid-in capital

 

 

 

 

41,277,478

 

Total distributable earnings (loss)

 

 

 

 

82,485,561

 

Net Assets ($)

 

 

123,763,039

 

     

Net Asset Value Per Share

Class A

Class C

Class I

 

Net Assets ($)

98,195,626

4,055,757

21,511,656

 

Shares Outstanding

2,802,857

127,281

610,591

 

Net Asset Value Per Share ($)

35.03

31.86

35.23

 

 

 

 

 

 

See notes to financial statements.

 

 

 

 

12

 

STATEMENT OF OPERATIONS

Year Ended October 31, 2022

       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Income ($):

 

 

 

 

Income:

 

 

 

 

Cash dividends (net of $30,238 foreign taxes withheld at source):

 

Unaffiliated issuers

 

 

1,964,318

 

Affiliated issuers

 

 

8,918

 

Income from securities lending—Note 1(c)

 

 

8,629

 

Total Income

 

 

1,981,865

 

Expenses:

 

 

 

 

Management fee—Note 3(a)

 

 

1,336,344

 

Distribution/Service Plan fees—Note 3(b)

 

 

329,839

 

Directors’ fees—Note 3(a,c)

 

 

14,603

 

Loan commitment fees—Note 2

 

 

2,897

 

Total Expenses

 

 

1,683,683

 

Less—Directors’ fees reimbursed by
BNY Mellon Investment Adviser, Inc.—Note 3(a)

 

 

(14,603)

 

Net Expenses

 

 

1,669,080

 

Net Investment Income

 

 

312,785

 

Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):

 

 

Net realized gain (loss) on investments and foreign currency transactions

8,968,500

 

Net change in unrealized appreciation (depreciation) on investments
and foreign currency transactions

(37,902,583)

 

Net Realized and Unrealized Gain (Loss) on Investments

 

 

(28,934,083)

 

Net (Decrease) in Net Assets Resulting from Operations

 

(28,621,298)

 

 

 

 

 

 

 

 

See notes to financial statements.

     

13

 

STATEMENT OF CHANGES IN NET ASSETS

          

 

 

 

 

Year Ended October 31,

 

 

 

 

2022

 

2021

 

Operations ($):

 

 

 

 

 

 

 

 

Net investment income

 

 

312,785

 

 

 

165,054

 

Net realized gain (loss) on investments

 

8,968,500

 

 

 

6,218,285

 

Net change in unrealized appreciation
(depreciation) on investments

 

(37,902,583)

 

 

 

40,214,923

 

Net Increase (Decrease) in Net Assets
Resulting from Operations

(28,621,298)

 

 

 

46,598,262

 

Distributions ($):

 

Distributions to shareholders:

 

 

 

 

 

 

 

 

Class A

 

 

(4,992,632)

 

 

 

(6,235,634)

 

Class C

 

 

(251,713)

 

 

 

(797,636)

 

Class I

 

 

(1,022,214)

 

 

 

(1,172,400)

 

Total Distributions

 

 

(6,266,559)

 

 

 

(8,205,670)

 

Capital Stock Transactions ($):

 

Net proceeds from shares sold:

 

 

 

 

 

 

 

 

Class A

 

 

5,502,533

 

 

 

11,674,318

 

Class C

 

 

538,206

 

 

 

770,673

 

Class I

 

 

5,261,223

 

 

 

5,183,820

 

Distributions reinvested:

 

 

 

 

 

 

 

 

Class A

 

 

4,283,126

 

 

 

5,277,331

 

Class C

 

 

251,278

 

 

 

797,096

 

Class I

 

 

958,458

 

 

 

1,104,596

 

Cost of shares redeemed:

 

 

 

 

 

 

 

 

Class A

 

 

(12,274,272)

 

 

 

(9,594,249)

 

Class C

 

 

(1,402,465)

 

 

 

(8,611,137)

 

Class I

 

 

(4,633,249)

 

 

 

(2,355,255)

 

Increase (Decrease) in Net Assets
from Capital Stock Transactions

(1,515,162)

 

 

 

4,247,193

 

Total Increase (Decrease) in Net Assets

(36,403,019)

 

 

 

42,639,785

 

Net Assets ($):

 

Beginning of Period

 

 

160,166,058

 

 

 

117,526,273

 

End of Period

 

 

123,763,039

 

 

 

160,166,058

 

14

 

          

 

 

 

 

Year Ended October 31,

 

 

 

 

2022

 

2021

 

Capital Share Transactions (Shares):

 

Class Aa,b

 

 

 

 

 

 

 

 

Shares sold

 

 

133,759

 

 

 

310,318

 

Shares issued for distributions reinvested

 

 

98,546

 

 

 

149,137

 

Shares redeemed

 

 

(317,981)

 

 

 

(248,539)

 

Net Increase (Decrease) in Shares Outstanding

(85,676)

 

 

 

210,916

 

Class Cb

 

 

 

 

 

 

 

 

Shares sold

 

 

13,948

 

 

 

20,930

 

Shares issued for distributions reinvested

 

 

6,304

 

 

 

24,436

 

Shares redeemed

 

 

(38,809)

 

 

 

(251,332)

 

Net Increase (Decrease) in Shares Outstanding

(18,557)

 

 

 

(205,966)

 

Class Ia

 

 

 

 

 

 

 

 

Shares sold

 

 

134,174

 

 

 

132,614

 

Shares issued for distributions reinvested

 

 

22,018

 

 

 

31,039

 

Shares redeemed

 

 

(120,994)

 

 

 

(60,634)

 

Net Increase (Decrease) in Shares Outstanding

35,198

 

 

 

103,019

 

 

 

 

 

 

 

 

 

 

 

a

During the period ended October 31, 2022, 13,971 Class A shares representing $510,580 were exchanged for 13,891 Class I shares.

 

b

During the period ended October 31, 2022, 2,862 Class C shares representing $113,080 were automatically converted to 2,625 Class A shares and during the period ended October 31, 2021, 7,212 Class C shares representing $253,319 were automatically converted to 6,649 Class A shares.

 

See notes to financial statements.

        

15

 

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share. Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. These figures have been derived from the fund’s financial statements.

        
    
   

Class A Shares

 

Year Ended October 31,

 

2022

2021

2020

2019

2018

Per Share Data ($):

      

Net asset value, beginning of period

 

44.49

33.79

30.45

29.35

29.44

Investment Operations:

      

Net investment incomea

 

.08

.05

.18

.26

.24

Net realized and unrealized
gain (loss) on investments

 

(7.80)

12.99

4.72

3.85

1.25

Total from Investment Operations

 

(7.72)

13.04

4.90

4.11

1.49

Distributions:

      

Dividends from
net investment income

 

(.02)

(.06)

(.22)

(.30)

(.23)

Dividends from net realized
gain on investments

 

(1.72)

(2.28)

(1.34)

(2.71)

(1.35)

Total Distributions

 

(1.74)

(2.34)

(1.56)

(3.01)

(1.58)

Net asset value, end of period

 

35.03

44.49

33.79

30.45

29.35

Total Return (%)b

 

(18.09)

40.40

16.73

15.88

5.19

Ratios/Supplemental Data (%):

      

Ratio of total expenses
to average net assets

 

1.21

1.21

1.21

1.21

1.26

Ratio of net expenses
to average net assets

 

1.20

1.20

1.20

1.20

1.25

Ratio of net investment income
to average net assets

 

.21

.12

.56

.92

.82

Portfolio Turnover Rate

 

7.55

4.27

9.68

2.69

5.63

Net Assets, end of period ($ x 1,000)

 

98,196

128,512

90,470

82,846

77,180

a Based on average shares outstanding.

b Exclusive of sales charge.

See notes to financial statements.

16

 

        
    
   

Class C Shares

 

Year Ended October 31,

 

2022

2021

2020

2019

2018

Per Share Data ($):

      

Net asset value, beginning of period

 

40.89

31.39

28.42

27.59

27.77

Investment Operations:

      

Net investment income (loss)a

 

(.20)

(.19)

(.05)

.05

.02

Net realized and unrealized
gain (loss) on investments

 

(7.11)

11.97

4.39

3.58

1.18

Total from Investment Operations

 

(7.31)

11.78

4.34

3.63

1.20

Distributions:

      

Dividends from
net investment income

 

-

-

(.03)

(.09)

(.03)

Dividends from net realized
gain on investments

 

(1.72)

(2.28)

(1.34)

(2.71)

(1.35)

Total Distributions

 

(1.72)

(2.28)

(1.37)

(2.80)

(1.38)

Net asset value, end of period

 

31.86

40.89

31.39

28.42

27.59

Total Return (%)b

 

(18.70)

39.37

15.83

15.01

4.41

Ratios/Supplemental Data (%):

      

Ratio of total expenses
to average net assets

 

1.96

1.96

1.96

1.96

2.01

Ratio of net expenses
to average net assets

 

1.95

1.95

1.95

1.95

2.00

Ratio of net investment income
(loss) to average net assets

 

(.56)

(.55)

(.17)

.18

.06

Portfolio Turnover Rate

 

7.55

4.27

9.68

2.69

5.63

Net Assets, end of period ($ x 1,000)

 

4,056

5,963

11,043

12,001

13,123

a Based on average shares outstanding.

b Exclusive of sales charge.

See notes to financial statements.

17

 

FINANCIAL HIGHLIGHTS (continued)

           
       
   

Class I Shares

 

Year Ended October 31,

 

2022

2021

2020

2019

2018

Per Share Data ($):

      

Net asset value, beginning of period

 

44.65

33.90

30.55

29.43

29.50

Investment Operations:

      

Net investment incomea

 

.18

.14

.26

.33

.33

Net realized and unrealized
gain (loss) on investments

 

(7.84)

13.04

4.73

3.87

1.26

Total from Investment Operations

 

(7.66)

13.18

4.99

4.20

1.59

Distributions:

      

Dividends from
net investment income

 

(.04)

(.15)

(.30)

(.37)

(.31)

Dividends from net realized
gain on investments

 

(1.72)

(2.28)

(1.34)

(2.71)

(1.35)

Total Distributions

 

(1.76)

(2.43)

(1.64)

(3.08)

(1.66)

Net asset value, end of period

 

35.23

44.65

33.90

30.55

29.43

Total Return (%)

 

(17.90)

40.76

17.00

16.21

5.51

Ratios/Supplemental Data (%):

      

Ratio of total expenses
to average net assets

 

.96

.96

.96

.96

1.01

Ratio of net expenses
to average net assets

 

.95

.95

.95

.95

1.00

Ratio of net investment income
to average net assets

 

.46

.36

.81

1.18

1.11

Portfolio Turnover Rate

 

7.55

4.27

9.68

2.69

5.63

Net Assets, end of period ($ x 1,000)

 

21,512

25,691

16,013

13,931

15,026

a Based on average shares outstanding.

See notes to financial statements.

18

 

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

BNY Mellon Tax Managed Growth Fund (the “fund”) is a separate diversified series of BNY Mellon Investment Funds IV, Inc. (the “Company”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering four series, including the fund. The fund’s investment objective is to seek long-term capital appreciation consistent with minimizing realized capital gains. BNY Mellon Investment Adviser, Inc. (the “Adviser”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. Fayez Sarofim & Co. (the “Sub-Adviser” or “Sarofim & Co.”) serves as the sub-adviser to the fund. Due to a change in the ownership and organizational structure of Sarofim & Co. that occurred on May 28, 2022 (the “Effective Date”), the then-existing sub-advisory agreement between the Adviser and Sarofim & Co., on behalf of the fund (the “Prior Sub-Advisory Agreement”) terminated in accordance with its terms and the Act.

To enable Sarofim & Co. to continue to provide sub-advisory services to the fund after the Effective Date, the Company’s Board of Directors (the “Board”) approved an interim sub-advisory agreement between the Adviser and Sarofim & Co., on behalf of the fund (the “Interim Sub-Advisory Agreement”), which did not require shareholder approval, and a new sub-advisory agreement between the Adviser and Sarofim & Co., on behalf of the fund (the “New Sub-Advisory Agreement”), which required approval by a majority of the fund’s outstanding voting securities before it could go into effect. As required under the Act, the Interim Sub-Advisory Agreement expired upon the earlier of 150 days after the Effective Date or upon shareholder approval and effectiveness of the New Sub-Advisory Agreement. Therefore, the Board called a Special Meeting of Shareholders to seek shareholder approval of the New Sub-Advisory Agreement in order to ensure that Sarofim & Co. could provide uninterrupted service as sub-adviser to the fund. At a Special Meeting of Shareholders held on October 4, 2022, votes were presented and counted but the fund did not receive enough votes to reach the required threshold to approve the New Sub-Advisory Agreement. While the percentage of shares voted was significantly in favor of the proposal, the shareholder meeting was further adjourned to October 24, 2022 to provide additional time for shareholders of the fund to vote. At a Special Meeting of Shareholders on October 24, 2022, shareholder approval was obtained for the New Sub-Advisory Agreement. See “Proxy Results (Unaudited)”.

19

 

NOTES TO FINANCIAL STATEMENTS (continued)

The sub-advisory fee payable under the Interim Sub-Advisory Agreement and the New Sub-Advisory Agreement is the same as the sub-advisory fee under the Prior Sub-Advisory Agreement. The Adviser continues to serve as the fund’s investment adviser.

BNY Mellon Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Adviser, is the distributor of the fund’s shares. The fund is authorized to issue 600 million shares of $.001 par value Common Stock. The fund currently has authorized three classes of shares: Class A (300 million shares authorized), Class C (100 million shares authorized) and Class I (200 million shares authorized). Class A and Class C shares are sold primarily to retail investors through financial intermediaries and bear Distribution fees and/or Service Plan fees. Class A shares generally are subject to a sales charge imposed at the time of purchase. Class A shares bought without an initial sales charge as part of an investment of $1 million or more may be charged a contingent deferred sales charge (“CDSC”) of 1.00% if redeemed within one year. Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase. Class C shares automatically convert to Class A shares eight years after the date of purchase, without the imposition of a sales charge. Class I shares are sold primarily to bank trust departments and other financial service providers (including BNY Mellon and its affiliates), acting on behalf of customers having a qualified trust or an investment account or relationship at such institution, and bear no Distribution or Service Plan fees. Class I shares are offered without a front-end sales charge or CDSC. Other differences between the classes include the services offered to and the expenses borne by each class, and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

The Company accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund is an investment company and applies the accounting and reporting guidance of the FASB ASC Topic 946 Financial Services-Investment Companies. The fund’s

20

 

financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The Company enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown. The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted quoted prices in active markets for identical investments.

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

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 necessarily an indication of the risk associated with investing in those securities.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:

The Board has designated the Adviser as the fund’s valuation designee, effective September 8, 2022, to make all fair value determinations with

21

 

NOTES TO FINANCIAL STATEMENTS (continued)

respect to the fund’s portfolio investments, subject to the Board’s oversight and pursuant to Rule 2a-5 under the Act.

Investments in equity securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. For open short positions, asked prices are used for valuation purposes. Bid price is used when no asked price is available. Registered investment companies that are not traded on an exchange are valued at their net asset value. All of the preceding securities are generally categorized within Level 1 of the fair value hierarchy.

Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices. These securities are generally categorized within Level 2 of the fair value hierarchy.

Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADRs and futures. Utilizing these techniques may result in transfers between Level 1 and Level 2 of the fair value hierarchy.

When market quotations or official closing prices are not readily available, or are determined not to accurately reflect fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.

For securities where observable inputs are limited, assumptions about market activity and risk are used and such securities are generally categorized within Level 3 of the fair value hierarchy.

Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange.

22

 

The following is a summary of the inputs used as of October 31, 2022 in valuing the fund’s investments:

       
 

Level 1-Unadjusted Quoted Prices

Level 2- Other Significant Observable Inputs

 

Level 3-Significant Unobservable Inputs

Total

 

Assets ($)

  

Investments in Securities:

  

Equity Securities - Common Stocks

122,875,474

-

 

-

122,875,474

 

Investment Companies

962,357

-

 

-

962,357

 

 See Statement of Investments for additional detailed categorizations, if any.

(b) Foreign currency transactions: The fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized on securities transactions between trade and settlement date, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments resulting from changes in exchange rates. Foreign currency gains and losses on foreign currency transactions are also included with net realized and unrealized gain or loss on investments.

Foreign taxes: The fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, realized and unrealized capital gains on investments or certain foreign currency transactions. Foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the fund invests. These foreign taxes, if any, are paid by the fund and are reflected in the Statement of Operations, if applicable. Foreign taxes payable or deferred or those subject to reclaims as of October 31, 2022, if any, are disclosed in the fund’s Statement of Assets and Liabilities.

(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and

23

 

NOTES TO FINANCIAL STATEMENTS (continued)

amortization of premium on investments, is recognized on the accrual basis.

Pursuant to a securities lending agreement with BNY Mellon, the fund may lend securities to qualified institutions. It is the fund’s policy that, at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by the Adviser, or U.S. Government and Agency securities. The fund is entitled to receive all dividends, interest and distributions on securities loaned, in addition to income earned as a result of the lending transaction. Should a borrower fail to return the securities in a timely manner, BNY Mellon is required to replace the securities for the benefit of the fund or credit the fund with the market value of the unreturned securities and is subrogated to the fund’s rights against the borrower and the collateral. Additionally, the contractual maturity of security lending transactions are on an overnight and continuous basis. During the period ended October 31, 2022, BNY Mellon earned $1,177 from the lending of the fund’s portfolio securities, pursuant to the securities lending agreement.

(d) Affiliated issuers: Investments in other investment companies advised by the Adviser are considered “affiliated” under the Act.

(e) Market Risk: The value of the securities in which the fund invests may be affected by political, regulatory, economic and social developments, and developments that impact specific economic sectors, industries or segments of the market. The value of a security may also decline due to general market conditions that are not specifically related to a particular company or industry, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates, changes to inflation, adverse changes to credit markets or adverse investor sentiment generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the fund. Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies world-wide. Recent examples include pandemic risks related to COVID-19 and aggressive measures taken world-wide in response by governments,

24

 

including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines of large populations, and by businesses, including changes to operations and reducing staff.

(f) Dividends and distributions to shareholders: Dividends and distributions are recorded on the ex-dividend date. Dividends from net investment income are normally declared and paid quarterly. Dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”). To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

(g) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.

As of and during the period ended October 31, 2022, the fund did not have any liabilities for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended October 31, 2022, the fund did not incur any interest or penalties.

Each tax year in the four-year period ended October 31, 2022 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At October 31, 2022, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $227,196, undistributed capital gains $8,966,377 and unrealized appreciation $73,291,988.

The tax character of distributions paid to shareholders during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows: ordinary income $85,003 and $255,421, and long-term capital gains $6,181,556 and $7,950,249, respectively.

NOTE 2—Bank Lines of Credit:

The fund participates with other long-term open-end funds managed by the Adviser in a $823.5 million unsecured credit facility led by Citibank,

25

 

NOTES TO FINANCIAL STATEMENTS (continued)

N.A. (the “Citibank Credit Facility”) and a $300 million unsecured credit facility provided by BNY Mellon (the “BNYM Credit Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions (each, a “Facility”). The Citibank Credit Facility is available in two tranches: (i) Tranche A is in an amount equal to $688.5 million and is available to all long-term open-ended funds, including the fund, and (ii) Tranche B is an amount equal to $135 million and is available only to BNY Mellon Floating Rate Income Fund, a series of BNY Mellon Investment Funds IV, Inc. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for Tranche A of the Citibank Credit Facility and the BNYM Credit Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing. During the period ended October 31, 2022, the fund did not borrow under the Facilities.

NOTE 3—Management Fee, Sub-Advisory Fee and Other Transactions with Affiliates:

(a) Pursuant to a management agreement with the Adviser, the Adviser provides or arranges for one or more third parties and/or affiliates to provide management, administrative, custody, fund accounting and transfer agency services to the fund. The Adviser also directs the investments of the fund in accordance with its investment objective, policies and limitations. For these services, the fund is contractually obligated to pay the Adviser a fee, calculated daily and paid monthly, at the annual rate of .95% of the value of the fund’s average daily net assets. Out of its fee, the Adviser pays all of the expenses of the fund except brokerage fees, taxes, interest expenses, commitment fees on borrowings, Distribution Plan fees and Service Plan fees, fees and expenses of the non-interested Board Members (including counsel fees) and extraordinary expenses. In addition, the Adviser is required to reduce its fee in an amount equal to the fund’s allocable portion of fees and expenses of the non-interested Board Members (including counsel fees). During the period ended October 31, 2022, fees reimbursed by the Adviser amount to $14,603.

Pursuant to a sub-investment advisory agreement between the Adviser and the Sub-Adviser, the Adviser pays the Sub-Adviser a monthly fee at an annual rate of .2175% of the value of the fund’s average daily net assets.

During the period ended October 31, 2022, the Distributor retained $3,077 from commissions earned on sales of the fund’s Class A shares and $132 from CDSC fees on redemptions of the fund’s Class C shares.

26

 

(b) Under the Distribution Plans adopted pursuant to Rule 12b-1 (the “Distribution Plans”) under the Act, Class A shares pay annually up to .25% of the value of its average daily net assets to compensate the Distributor and its affiliates for shareholder servicing activities and expenses primarily intended to result in the sale of Class A shares. The Distributor may compensate Service Agents in respect of distribution-related services with regard to the fund and/or shareholder services to the Service Agents’ clients that hold Class A shares. Class C shares pay the Distributor for distributing its shares at an aggregate annual rate of .75% of the value of the average daily net assets of Class C shares. The Distributor may pay one or more Service Agents for distribution-related services, and determines the amounts, if any, to be paid to Service Agents and the basis on which such payments are made. Class C shares are also subject to a service plan adopted pursuant to Rule 12b-1 (the “Service Plan”), under which Class C shares pay the Distributor for providing certain services to the holders of their shares, a fee at an annual rate of .25% of the value of the average daily net assets of Class C shares. Services include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund, and providing services related to the maintenance of shareholder accounts. The Distributor may make payments to certain Service Agents in respect of these services. During the period ended October 31, 2022, Class A and Class C shares were charged $280,655 and $36,888, respectively, pursuant to their Distribution Plans. During the period ended October 31, 2022, Class C shares were charged $12,296 pursuant to the Service Plan.

Under its terms, the Distribution Plans and Service Plan shall remain in effect from year to year, provided such continuance is approved annually by a vote of a majority of those Directors who are not “interested persons” of the Company and who have no direct or indirect financial interest in the operation of or in any agreement related to the Distribution Plans or Service Plan.

The fund has an arrangement with The Bank of New York Mellon (the “Custodian”), a subsidiary of BNY Mellon and an affiliate of the Adviser, whereby the fund will receive interest income or be charged overdraft fees when cash balances are maintained. For financial reporting purposes, the fund includes this interest income and overdraft fees, if any, as interest income in the Statement of Operations.

The components of “Due to BNY Mellon Investment Adviser, Inc. and affiliates” in the Statement of Assets and Liabilities consist of: management fee of $96,780, Distribution Plans fees of $22,702 and Service Plan fees of

27

 

NOTES TO FINANCIAL STATEMENTS (continued)

$837, which are offset against an expense reimbursement currently in effect in the amount of $2,967.

(c) Each Board member also serves as a Board member of other funds in the BNY Mellon Family of Funds complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended October 31, 2022, amounted to $10,559,630 and $17,670,294, respectively.

At October 31, 2022, the cost of investments for federal income tax purposes was $50,545,763; accordingly, accumulated net unrealized appreciation on investments was $73,292,068, consisting of $73,693,398 gross unrealized appreciation and $401,330 gross unrealized depreciation.

28

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of the Fund and Board of Directors of
BNY Mellon Investment Funds IV, Inc.:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of BNY Mellon Tax Managed Growth Fund (the Fund), a series of BNY Mellon Investment Funds IV, Inc., including the statement of investments, as of October 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements), and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of October 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of October 31, 2022, by correspondence with the custodian. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more BNY Mellon Investment Adviser, Inc. investment companies since 1994.

New York, New York
December 23, 2022

29

 

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the fund reports the maximum amount allowable, but not less than $85,003 as ordinary income dividends paid during the year ended October 31, 2022 as qualified dividend income in accordance with Section 854(b)(1)(B) of the Internal Revenue Code. Also, the fund reports the maximum amount allowable but not less than 100% of ordinary income dividends paid during the year ended October 31, 2022 as eligible for the corporate dividends received deduction provided under Section 243 of the Internal Revenue Code in accordance with Section 854(b)(1)(A) of the Internal Revenue Code. Shareholders will receive notification in early 2023 of the percentage applicable to the preparation of their 2022 income tax returns. Also, the fund reports the maximum amount allowable but not less than $1.7165 per share as a capital gain dividend paid on December 7, 2021 in accordance with Section 852(b)(3)(C) of the Internal Revenue Code.

30

 

PROXY RESULTS (Unaudited)

A special meeting of the fund’s shareholders was held on October 24, 2022. The proposal considered at the meeting and the results were as follows:

     
  

Shares

  

For

Against

Abstain

To approve a new sub-investment advisory agreement between BNY Mellon Investment Adviser, Inc., on behalf of the fund, and Fayez Sarofim & Co.

 

1,439,642

39,602

409,801

31

 

INFORMATION ABOUT THE APPROVAL OF THE FUND'S NEW SUB-INVESTMENT ADVISORY AGREEMENT (Unaudited)

At a meeting of the fund’s Board of Directors (the “Board”) held on June 6, 2022 (the “June Meeting”), the Board discussed the passing of Fayez Sarofim, the founder and controlling shareholder of Fayez Sarofim & Co. (the “Sub-Adviser”), the fund’s sub-adviser. Mr. Sarofim’s passing caused a “change in control” of the Sub-Adviser which triggered an assignment and automatic termination of the then-existing sub-investment advisory agreement (the “Prior Sub-Advisory Agreement”) between the fund’s investment adviser, BNY Mellon Investment Adviser, Inc. (the “Adviser”), on behalf of the fund, and the Sub-Adviser, pursuant to its terms and the applicable provisions of the Investment Company Act of 1940, as amended (the “1940 Act”). To enable the Sub-Adviser to continue to provide day-to-day management of the fund’s investments after the automatic termination of the Prior Sub-Advisory Agreement, the Board Members, a majority of whom are not “interested persons” (as defined in the 1940 Act) of the fund (the “Independent Board Members”), discussed and approved an interim sub-investment advisory agreement (the “Interim Sub-Advisory Agreement”) between the Adviser, on behalf of the fund, and the Sub-Adviser, which did not require shareholder approval before it went into effect on May 28, 2022 (the “Effective Date”). As required under the 1940 Act, the Interim Sub-Advisory Agreement expires upon the earlier of 150 days after the Effective Date or upon shareholder approval and effectiveness of a new sub-investment advisory agreement between the fund and the Sub-Adviser.

At a meeting of the fund’s Board of Directors held on July 21, 2022 (the “July Meeting”), the Board considered and approved a new sub-investment advisory agreement (the “New Sub-Advisory Agreement”) between the Adviser, on behalf of the fund, and the Sub-Adviser, subject to shareholder approval, pursuant to which the Sub-Adviser would continue to provide day-to-day management of the fund’s portfolio, and agreed to recommend that shareholders of the fund approve the New Sub-Advisory Agreement at a shareholder meeting to be held on October 4, 2022. The New Sub-Advisory Agreement was approved by fund shareholders as of October 24, 2022.

The Prior Sub-Advisory Agreement was most recently reapproved by the Board for a one-year continuance at a meeting held March 2-3, 2022 (the “15(c) Meeting”). At the 15(c) Meeting, the Independent Board Members requested and received information from the Adviser and Sub-Adviser they deemed reasonably necessary for their review of the Prior Sub-Advisory Agreement and the performance and services provided by the Sub-Adviser. The information received by the Board included information related to the fees paid by the fund to the Adviser and by the Adviser to the Sub-Adviser and the profitability of the Adviser and its affiliates with respect to the fund, among other items, in accordance with Section 15(c) of the 1940 Act. At the June Meeting and July Meeting, management of the Adviser confirmed that it believed that there were no material changes to the information presented at the 15(c) Meeting relevant to the Board’s consideration of the Interim Sub-Advisory Agreement and New Sub-Advisory Agreement, respectively, other than the information about the change in control at the Sub-Adviser following the death of Mr. Sarofim as the firm’s controlling shareholder. In addition, the Sub-Adviser represented that its new ownership structure was not

32

 

expected to have a material impact on the nature, extent or quality of the investment advisory services that the Sub-Adviser provided to the fund, and that the persons responsible for portfolio management of the fund (other than Mr. Fayez Sarofim) were anticipated to remain the same. It was also noted that the terms of the Interim Sub-Advisory Agreement were substantially similar in material respects to the fund’s Prior Sub-Advisory Agreement, except for the term and termination provisions.

In connection with the June Meeting and July Meeting and in accordance with Section 15(c) of the 1940 Act, the Board requested, and the Adviser and Sub-Adviser provided, materials relating to the change in control of the Sub-Adviser in connection with the Board’s consideration of whether to approve the Interim Sub-Advisory Agreement and New Sub-Advisory Agreement, respectively. This included a description of the Sub-Adviser’s new ownership structure and its anticipated effects on the Sub-Adviser and its business activities and personnel. The Board noted that the services provided under the Interim Sub-Advisory Agreement and New Sub-Advisory Agreement, respectively, would be substantially identical to those provided under the Prior Sub-Advisory Agreement. In addition, the sub-advisory fee under the Interim Sub-Advisory Agreement and New Sub-Advisory Agreement, respectively, would remain the same as the sub-advisory fee under the Prior Sub-Advisory Agreement. Management of the Adviser and Sub-Adviser represented that under the Interim Sub-Advisory Agreement and New Sub-Advisory Agreement, respectively, there would be no diminution in services provided by the Sub-Adviser to the fund or changes in the fees payable by the fund to the Adviser or by the Adviser to the Sub-Adviser. The Board also considered the substance of discussions with representatives of the Adviser and Sub-Adviser at the 15(c) Meeting. Additionally, the Board reviewed materials supplied by counsel that were prepared for use by the Board in fulfilling its duties under state law and the 1940 Act.

In voting to approve the Interim Sub-Advisory Agreement and the New Sub-Advisory Agreement, the Board considered whether the approval of the agreements would be in the best interests of the fund and its shareholders, an evaluation based on several factors including those discussed below. At the June Meeting and July Meeting, the Independent Board Members were represented by legal counsel that is independent of the Adviser and Sub-Adviser in connection with their consideration of approval of the Interim Sub-Advisory Agreement and New Sub-Advisory Agreement, respectively. Based on their discussions and considerations, including those described below, the Board, including the Independent Board Members, approved the Interim Sub-Advisory Agreement at the June Meeting and the New Sub-Advisory Agreement at the July Meeting. It is currently anticipated that the New Sub-Advisory Agreement will be reviewed by the Board as part of its annual review of advisory arrangements for the fund in the first quarter of 2023.

Nature, Extent and Quality of Services to be Provided under the Interim and New Sub-Advisory Agreements. At the 15(c) Meeting, the Board received and considered information regarding the nature, extent and quality of services provided to the fund by the Sub-Adviser under the Prior Sub-Advisory Agreement. The Board noted information received at regular meetings throughout the year related to the services rendered by the

33

 

INFORMATION ABOUT THE APPROVAL OF THE FUND'S NEW SUB-INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued)

Sub-Adviser to the fund, including the scope and quality of the investment management and other capabilities of the Sub-Adviser. Based on such considerations, the Board concluded that the nature, extent and quality of the services provided by the Sub-Adviser were adequate and appropriate.

At the June Meeting and July Meeting, the Board received and considered information regarding the fact that the nature, extent and quality of services to be provided to the fund by the Sub-Adviser under the Interim Sub-Advisory Agreement or the New Sub-Advisory Agreement, respectively, would not change as a result of the Sub-Adviser’s new ownership structure. The Board Members discussed with management the portfolio management strategies of the fund’s portfolio managers and noted that there were currently no long-term or short-term plans to make changes to the management or investment policies, strategies or objective of the fund as a result of the Sub-Adviser’s new ownership structure. The Board Members considered the specific responsibilities in all aspects of the day-to-day management of the fund by the Sub-Adviser, and the fact that the persons responsible for portfolio management (with the exception of Mr. Fayez Sarofim) were anticipated to remain the same. The Board also considered that the division of responsibilities between the Adviser and the Sub-Adviser would remain the same as it was under the Prior Sub-Advisory Agreement. The Board Members also considered the financial resources available to the Sub-Adviser. At the July Meeting, the fund’s Chief Compliance Officer discussed the compliance infrastructure of the Sub-Adviser. The Board also discussed the acceptability of the terms of the Interim Sub-Advisory Agreement and the New Sub-Advisory Agreement, respectively.

The Board concluded that the fund will continue to benefit from the quality and experience of the Sub-Adviser’s investment professionals that will continue to provide services to the fund. Based on its consideration and review of the foregoing information, the Board concluded that it was satisfied with the nature, extent and quality of the sub-investment advisory services expected to be provided by the Sub-Adviser.

Fund Investment Performance. The Board Members considered the investment performance of the Sub-Adviser in managing the fund’s portfolio as a factor in evaluating the Interim Sub-Advisory Agreement and the New Sub-Advisory Agreement. At the 15(c) Meeting, the Board received and reviewed reports prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, which included information comparing the fund’s performance with the performance of a group of funds selected by Broadridge as comparable to the fund (the “Performance Group”) and with a broader group of funds, all for various periods. It was noted that, while the Board has found the Broadridge data generally useful, the Board Members recognized the limitations of such data, including that the data may vary depending on the end date selected and that the results of the performance comparisons may vary depending on the selection of the peer group and its composition over time. The Adviser also provided a comparison of the fund’s calendar year total returns to the returns of the fund’s benchmark index. The Board concluded that it was generally satisfied with the fund’s overall performance.

34

 

At the July Meeting, the Board reviewed updated reports prepared by Broadridge which included information comparing the fund’s performance with its Performance Group and Performance Universe, all for various periods ended May 31, 2022. The Board discussed with representatives of the Adviser and the Sub-Adviser the results of the comparisons and considered the fund’s performance in light of overall financial market conditions. Where the fund’s total return performance was below the median during one or more specified periods, the Board noted the explanations from the Adviser and the Sub-Adviser concerning the fund’s relative performance versus the Performance Group or Performance Universe for such periods. Based on its review, the Board concluded that it continued to be generally satisfied with the fund’s historical performance under the Sub-Adviser’s management.

At the July Meeting, the Board Members discussed with representatives of the Adviser and the Sub-Adviser that the investment strategies employed by the Sub-Adviser in the management of the fund’s assets are expected to remain the same under the New Sub-Advisory Agreement. The Board also considered the fact that the persons responsible for portfolio management of the fund at the Sub-Adviser would remain (with the exception of Mr. Fayez Sarofim) the same. Based on its consideration and review of the foregoing, the Board concluded that these factors supported a decision to approve the Interim Sub-Advisory Agreement and the New Sub-Advisory Agreement.

Sub-Advisory Fee and Expense Ratio. At the 15(c) Meeting, the Board reviewed and considered the contractual management fee payable by the fund to the Adviser pursuant to the Management Agreement and the contractual sub-investment advisory fee payable by the Adviser to the Sub-Adviser pursuant to the Prior Sub-Advisory Agreement, and the sub-investment advisory services provided by the Sub-Adviser. The Board considered the fee paid to the Sub-Adviser in relation to the fee paid to the Adviser by the fund and the respective services provided by the Sub-Adviser and the Adviser. The Board also reviewed reports prepared by Broadridge which included information comparing the fund’s actual and contractual management fees and total expenses with those of the same group of funds in the Performance Group (the “Expense Group”) and with a broader group of funds (the “Expense Universe”), the information for which was derived in part from fund financial statements available to Broadridge as of the date of its analysis. The Board also reviewed the range of actual and contractual advisory fees and total expenses of the Expense Group and Expense Universe funds and discussed the results of the comparisons. The Board concluded that the fees paid to the Sub-Adviser were appropriate under the circumstances and in light of the factors and the totality of the services provided.

At the June Meeting and July Meeting, the Board considered the proposed fee payable under the Interim Sub-Advisory Agreement and the New Sub-Advisory Agreement, respectively, noting that the proposed fee would be the same as that payable under the Prior Sub-Advisory Agreement for the fund and that the proposed fee would continue to be paid by the Adviser and, thus, would not impact the fees paid by the fund. At the July Meeting, the Board reviewed updated reports prepared by Broadridge which included information comparing the fund’s actual and contractual management fees and

35

 

INFORMATION ABOUT THE APPROVAL OF THE FUND'S NEW SUB-INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued)

total expenses with those of its Expense Group and Expense Universe, the information for which was derived in part from fund financial statements available to Broadridge as of the date of its analysis. The Board also reviewed the range of actual and contractual advisory fees and total expenses of the Expense Group and Expense Universe funds and discussed the results of the comparisons.

The Board determined that the advisory fees and other expenses were reasonable in light of the nature, extent and quality of the services to be provided to the funds under the Interim Sub-Advisory Agreement and the New Sub-Advisory Agreement, respectively. The Board concluded that the fees payable to the Sub-Adviser under the Interim Sub-Advisory Agreement and the New Sub-Advisory Agreement continued to be appropriate under the circumstances and in light of the factors and the totality of the services expected to be provided.

Profitability. At the 15(c) Meeting, the Board received and considered a profitability analysis of the Adviser and its affiliates in providing services to the fund, noting at the time that an analysis of profitability was more appropriate in the context of the Board’s consideration of the Management Agreement. The Adviser representatives reviewed the expenses allocated and profit received by the Adviser and its affiliates and the resulting profitability percentage for managing the fund and the aggregate profitability percentage to the Adviser and its affiliates for managing the funds in the BNY Mellon fund complex, and the method used to determine the expenses and profit. The Board concluded that the profitability results were not excessive, given the services rendered and service levels provided by the Adviser and its affiliates.

At the June Meeting and July Meeting, the Board noted that the fee payable to the Sub-Adviser under the Prior Sub-Advisory Agreement was the same as that payable under the Interim Sub-Advisory Agreement and the New Sub-Advisory Agreement, respectively, and thus, no material impact to profitability with respect to the fund is expected as a result of the Sub-Adviser’s new ownership structure. Therefore, the Board determined that profitability of the Adviser and its affiliates should not be excessive in light of the nature, extent and quality of the services to be provided to the fund under the Interim Sub-Advisory Agreement or the New Sub-Advisory Agreement. At the July Meeting, the Board received and considered a profitability analysis of the Sub-Adviser in providing services to the fund and concluded that the profitability results were not excessive, given the services and service levels expected to be provided by the Sub-Adviser under New Sub-Advisory Agreement.

Economies of Scale. At the 15(c) Meeting, the Board discussed any economies of scale or other efficiencies that may result from increases in the fund’s assets. The Board noted that there are various ways to share potential economies of scale with fund shareholders and that it appeared that the benefits of any economies of scale would be appropriately shared with shareholders.

At the June Meeting and July Meeting, the Board noted that no material impact to the analysis of economies of scale is expected as a result of the Sub-Adviser’s new ownership structure and that, to the extent in the future it were determined that material

36

 

economies of scale had not been shared with the fund, the Board would seek to have those economies of scale shared with the fund.

Other Benefits to the Sub-Adviser. At the 15(c) Meeting, the Board considered potential benefits to the Adviser and the Sub-Adviser from acting as investment adviser and sub-investment adviser, respectively, and took into consideration the soft dollar arrangements in effect for trading the fund’s investments. The Board noted that the Sub-Adviser is required to select brokers who met the funds’ requirements for seeking best execution, and that the Adviser monitors and evaluates the Sub-Adviser’s trade execution with respect to fund brokerage transactions on a quarterly basis and provides reports to the Board on these matters. In light of the costs of providing investment management and other services to the fund and the Sub-Adviser’s commitment to the fund, any other ancillary benefits that the Sub-Adviser received were considered reasonable. At the June Meeting and July Meeting, the Board determined that any such ancillary benefits continued to be reasonable.

After full consideration of the factors discussed above, with no single factor identified as being of paramount importance, the Board, including a majority of the Independent Board Members, approved the Interim Sub-Advisory Agreement and the New Sub-Advisory Agreement for the fund.

37

 

BOARD MEMBERS INFORMATION (Unaudited)

Independent Board Members

Joseph S. DiMartino (79)

Chairman of the Board (1999)

Principal Occupation During Past 5 Years:

· Director or Trustee of funds in the BNY Mellon Family of Funds and certain other entities (as described in the fund’s Statement of Additional Information) (1995-Present)

Other Public Company Board Memberships During Past 5 Years:

· CBIZ, Inc., a public company providing professional business services, products and solutions, Director (1997-Present)

No. of Portfolios for which Board Member Serves: 94

———————

Francine J. Bovich (71)

Board Member (2012)

Principal Occupation During Past 5 Years:

· The Bradley Trusts, private trust funds, Trustee (2011-Present)

Other Public Company Board Memberships During Past 5 Years:

· Annaly Capital Management, Inc., a real estate investment trust, Director (2014-Present)

No. of Portfolios for which Board Member Serves: 54

———————

Andrew J. Donohue (72)

Board Member (2019)

Principal Occupation During Past 5 Years:

· Attorney, Solo Law Practice (2019-Present)

· Shearman & Sterling LLP. a law firm, Of Counsel (2017-2019)

· Chief of Staff to the Chair of the SEC (2015-2017)

Other Public Company Board Memberships During Past 5 Years:

· Oppenheimer Funds (58 funds), Director (2017-2019)

No. of Portfolios for which Board Member Serves: 44

———————

38

 

Kenneth A. Himmel (76)

Board Member (1993)

Principal Occupation During Past 5 Years:

· Gulf Related, an international real estate development company, Managing Partner (2010-Present)

· Related Urban Development, a real estate development company, President and Chief Executive Officer (1996-Present)

· American Food Management, a restaurant company, Chief Executive Officer (1983-Present)

· Himmel & Company, a real estate development company, President and Chief Executive Officer (1980-Present)

No. of Portfolios for which Board Member Serves: 22

———————

Roslyn M. Watson (73)

Board Member (1993)

Principal Occupation During Past 5 Years:

· Watson Ventures, Inc., a real estate investment company, Principal (1993-Present)

Other Public Company Board Memberships During Past 5 Years:

· American Express Bank, FSB, Director (1993-2018)

No. of Portfolios for which Board Member Serves: 44

———————

Benaree Pratt Wiley (76)

Board Member (1998)

Principal Occupation During Past 5 Years:

· The Wiley Group, a firm specializing in strategy and business development, Principal (2005-Present)

Other Public Company Board Memberships During Past 5 Years:

· CBIZ, Inc., a public company providing professional business services, products and solutions, Director (2008-Present)

· Blue Cross-Blue Shield of Massachusetts, Director (2004-2020)

No. of Portfolios for which Board Member Serves: 61

———————

39

 

BOARD MEMBERS INFORMATION (Unaudited) (continued)

Interested Board Member

Bradley Skapyak (63)

Board Member (2021)

Principal Occupation During Past 5 Years:

· Chief Operating Officer and Director of The Dreyfus Corporation (2009-2019)

· Chief Executive Officer and Director of the Distributor (2016-2019)

· Chairman and Director of The Dreyfus Transfer Agent, Inc. (2011-2019)

· Senior Vice President of The Bank of New York Mellon (2007-2019)

No. of Portfolios for which Board Member Serves: 22

Mr. Skapyak is deemed to be an Interested Board Member of the fund as a result of his ownership of unvested restricted stock units of BNY Mellon.

———————

The address of the Board Members and Officers is c/o BNY Mellon Investment Adviser, Inc., 240 Greenwich Street, New York, New York 10286. Additional information about each Board Member is available in the fund’s Statement of Additional Information which can be obtained from the Adviser free of charge by calling this toll free number: 1-800-373-9387.

40

 

OFFICERS OF THE FUND (Unaudited)

DAVID DIPETRILLO, President since January 2021.

Vice President and Director of the Adviser since February 2021; Head of North America Product, BNY Mellon Investment Management since January 2018; and Director of Product Strategy, BNY Mellon Investment Management from January 2016 to December 2017. He is an officer of 55 investment companies (comprised of 109 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 44 years old and has been an employee of BNY Mellon since 2005.

JAMES WINDELS, Treasurer since November 2001.

Vice President of the Adviser since September 2020; and Director–BNY Mellon Fund Administration. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 64 years old and has been an employee of the Adviser since April 1985.

PETER M. SULLIVAN, Chief Legal Officer since July 2021 and Vice President and Assistant Secretary since March 2019.

Chief Legal Officer of the Adviser and Associate General Counsel of BNY Mellon since July 2021; Senior Managing Counsel of BNY Mellon from December 2020 to July 2021; and Managing Counsel of BNY Mellon from March 2009 to December 2020. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 54 years old and has been an employee of BNY Mellon since April 2004.

JAMES BITETTO, Vice President since August 2005 and Secretary since February 2018.

Senior Managing Counsel of BNY Mellon since December 2019; Managing Counsel of BNY Mellon from April 2014 to December 2019; and Secretary of the Adviser. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 56 years old and has been an employee of the Adviser since December 1996.

DEIRDRE CUNNANE, Vice President and Assistant Secretary since March 2019.

Managing Counsel of BNY Mellon since December 2021, Counsel of BNY Mellon from August 2018 to December 2021; and Senior Regulatory Specialist at BNY Mellon Investment Management Services from February 2016 to August 2018. She is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 32 years old and has been an employee of the Adviser since August 2018.

SARAH S. KELLEHER, Vice President and Assistant Secretary since April 2014.

Vice President of BNY Mellon ETF Investment Adviser; LLC since February 2020; Senior Managing Counsel of BNY Mellon since September 2021; Managing Counsel of BNY Mellon from December 2017 to September 2021; and Senior Counsel of BNY Mellon from March 2013 to December 2017. She is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 47 years old and has been an employee of the Adviser since March 2013.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.

Senior Managing Counsel of BNY Mellon. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 57 years old and has been an employee of the Adviser since October 1990.

AMANDA QUINN, Vice President and Assistant Secretary since March 2020.

Counsel of BNY Mellon since June 2019; Regulatory Administration Manager at BNY Mellon Investment Management Services from September 2018 to May 2019; and Senior Regulatory Specialist at BNY Mellon Investment Management Services from April 2015 to August 2018. She is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 37 years old and has been an employee of the Adviser since June 2019.

41

 

OFFICERS OF THE FUND (Unaudited) (continued)

NATALYA ZELENSKY, Vice President and Assistant Secretary since March 2017.

Chief Compliance Officer since August 2021 and Vice President since February 2020 of BNY Mellon ETF Investment Adviser, LLC; Chief Compliance Officer since August 2021 and Vice President and Assistant Secretary since February 2020 of BNY Mellon ETF Trust; Managing Counsel of BNY Mellon from December 2019 to August 2021; Counsel of BNY Mellon from May 2016 to December 2019; and Assistant Secretary of the Adviser from April 2018 to August 2021. She is an officer of 55 investment companies (comprised of 129 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 37 years old and has been an employee of BNY Mellon since May 2016.

DANIEL GOLDSTEIN, Vice President since March 2022.

Vice President and Head of Product Development of North America Product, BNY Mellon Investment Management since January 2018; Co-Head of Product Management, Development & Oversight of North America Product, BNY Mellon Investment Management from January 2010 to January 2018; and Senior Vice President, Development & Oversight of North America Product, BNY Mellon Investment Management since 2010. He is an officer of 55 investment companies (comprised of 109 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 53 years old and has been an employee of the Distributor since 1991.

JOSEPH MARTELLA, Vice President since March 2022.

Vice President and Head of Product Management of North America Product, BNY Mellon Investment Management since January 2018; Director of Product Research and Analytics of North America Product, BNY Mellon Investment Management from January 2010 to January 2018; and Senior Vice President of North America Product, BNY Mellon Investment Management since 2010. He is an officer of 55 investment companies (comprised of 109 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 46 years old and has been an employee of the Distributor since 1999.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager–BNY Mellon Fund Administration. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 54 years old and has been an employee of the Adviser since April 1991.

ROBERT SALVIOLO, Assistant Treasurer since July 2007.

Senior Accounting Manager–BNY Mellon Fund Administration. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 55 years old and has been an employee of the Adviser since June 1989.

ROBERT SVAGNA, Assistant Treasurer since December 2002.

Senior Accounting Manager–BNY Mellon Fund Administration. He is an officer of 56 investment companies (comprised of 130 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 55 years old and has been an employee of the Adviser since November 1990.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the BNY Mellon Family of Funds and BNY Mellon Funds Trust since 2004; and Chief Compliance Officer of the Adviser from 2004 until June 2021. He is an officer of 55 investment companies (comprised of 115 portfolios) managed by the Adviser. He is 65 years old.

CARIDAD M. CAROSELLA, Anti-Money Laundering Compliance Officer since January 2016.

Anti-Money Laundering Compliance Officer of the BNY Mellon Family of Funds and BNY Mellon Funds Trust. She is an officer of 48 investment companies (comprised of 122 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 54 years old and has been an employee of the Distributor since 1997.

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For More Information

BNY Mellon Tax Managed Growth Fund

240 Greenwich Street

New York, NY 10286

Adviser

BNY Mellon Investment Adviser, Inc.

240 Greenwich Street

New York, NY 10286

Sub-Adviser

Fayez Sarofim & Co.

Two Houston Center

Suite 2907

909 Fannin Street

Houston, TX 77010

Custodian

The Bank of New York Mellon

240 Greenwich Street

New York, NY 10286

Transfer Agent &
Dividend Disbursing Agent

BNY Mellon Transfer, Inc.

240 Greenwich Street

New York, NY 10286

Distributor

BNY Mellon Securities Corporation

240 Greenwich Street

New York, NY 10286

  

Ticker Symbols:

Class A: DTMGX        Class C: DPTAX       Class I: DPTRX

Telephone Call your financial representative or 1-800-373-9387

Mail The BNY Mellon Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144

E-mail Send your request to info@bnymellon.com

Internet Information can be viewed online or downloaded at www.im.bnymellon.com

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-PORT. The fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov.

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the fund voted these proxies for the most recent 12-month period ended June 30 is available at www.im.bnymellon.com and on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-373-9387.

  

© 2022 BNY Mellon Securities Corporation
0149AR1022

 

 
 

 

 

Item 2. Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.

Item 3. Audit Committee Financial Expert.

The Registrant's Board has determined that Joseph S. DiMartino, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC"). Joseph S. DiMartino is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.

Item 4. Principal Accountant Fees and Services.

 

(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $108,380 in 2021 and $110,560 in 2022.

 

(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $15,630 in 2021 and $16,100 in 2022. These services consisted of one or more of the following: (i) agreed upon procedures related to compliance with Internal Revenue Code section 817(h), (ii) security counts required by Rule 17f-2 under the Investment Company Act of 1940, as amended, (iii) advisory services as to the accounting or disclosure treatment of Registrant transactions or events and (iv) advisory services to the accounting or disclosure treatment of the actual or potential impact to the Registrant of final or proposed rules, standards or interpretations by the Securities and Exchange Commission, the Financial Accounting Standards Boards or other regulatory or standard-setting bodies.

 

The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment 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 investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $0 in 2021 and $0 2022.

 

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice, and tax planning ("Tax Services") were $0 in 2021 and $0 2022. These services consisted of: (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held, and (iii) determination of Passive Foreign Investment. The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates, which required pre-approval by the Audit Committee were $0 in 2021 and $0 2022.

 

 
 

(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $0 in 2021 and $0 2022.

 

The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee, were $0 in 2021 and $0 2022.

 

(e)(1) Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. The pre-approved services in the Policy can include pre-approved audit services, pre-approved audit-related services, pre-approved tax services and pre-approved all other services. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence. Pre-approvals pursuant to the Policy are considered annually.

(e)(2) Note. None of the services described in paragraphs (b) through (d) of this Item 4 were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

 

(f) None of the hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.

Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $3,851,043 in 2021 and $3,945,912 in 2022.

 

Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor's independence.

 

(i)Not applicable.

 

(j) Not applicable.

 

 

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a) Not applicable.

Item 7.Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

 
 
Item 9.Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

Not applicable.

Item 10.Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures applicable to Item 10.

Item 11.Controls and Procedures.

(a)       The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b)       There were no changes to the Registrant's internal control over financial reporting that occurred 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 12.Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13.Exhibits.

(a)(1) Code of ethics referred to in Item 2.

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(a)(3) Not applicable.

(b)       Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.

 
 

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.

BNY Mellon Investment Funds IV, Inc.

By: /s/ David J. DiPetrillo

         David J. DiPetrillo

         President (Principal Executive Officer)

 

Date: December 21, 2022

 

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/ David J. DiPetrillo

         David J. DiPetrillo

         President (Principal Executive Officer)

 

Date: December 21, 2022

 

By: /s/ James Windels

         James Windels

        Treasurer (Principal Financial Officer)

 

Date: December 21, 2022

 

 

 
 

 

EXHIBIT INDEX

(a)(1) Code of ethics referred to in Item 2.

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)

(b)       Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)