United States Securities
and Exchange Commission
Washington, D.C. 20549
Form
Certified Shareholder Report
of Registered Management Investment Companies
811-8519
(Investment Company Act File Number)
(Exact Name of Registrant as Specified in Charter)
Federated Hermes Funds
4000 Ericsson
Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant’s Telephone
Number)
Peter J. Germain, Esquire
1001 Liberty
Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent
for Service)
Date of Fiscal Year End: 2025-10-31
Date of Reporting Period: Six
months ended
| Item 1. | Reports to Stockholders |
| Item 2. | Code of Ethics |
Not Applicable
| Item 3. | Audit Committee Financial Expert |
Not Applicable
| Item 4. | Principal Accountant Fees and Services |
Not Applicable
| Item 5. | Audit Committee of Listed Registrants |
Not Applicable
| Item 6. | Schedule of Investments |
(a) The registrant’s Schedule of Investments is included as part of the Financial Statements filed under Item 7 of this form.
(b) Not Applicable
| Item 7. | Financial Statements and Financial Highlights for Open-End Management Companies |
Semi-Annual Financial Statements
and Additional Information
and Additional Information
April 30, 2025
Emerging Markets Core Fund
A Portfolio of Federated Hermes Core Trust
Not FDIC Insured ▪ May
Lose Value ▪ No Bank Guarantee
Portfolio
of Investments
April 30, 2025 (unaudited)
|
Principal
Amount
or
Shares |
|
|
Value
in
U.S.
Dollars |
|
|
|
FOREIGN
GOVERNMENTS/AGENCIES—75.6% |
|
|
|
|
Banking—1.5%
|
|
|
$ 1,250,000
|
|
Banco
De Bogota S.A., Sub., REGS, 6.250%, 5/12/2026 |
$ 1,253,384
|
|
500,000
|
|
Banco
Do Brasil S.A., Sr. Unsecd. Note, 144A, 6.000%, 3/18/2031 |
505,311
|
|
2,000,000
|
|
Banco
Nacional de Comercio Exterior, Sub., REGS, 2.720%, 8/11/2031 |
1,887,316
|
|
750,000
|
|
Corp
Financiera de Desarrollo S.A., Sr. Unsecd. Note, 144A, 5.950%, 4/30/2029 |
767,314
|
|
1,000,000
|
1
|
Industrial
and Commercial Bank of China Ltd., Jr. Sub. Note, 3.200%, 9/4/2026 |
974,225
|
|
1,000,000
|
|
Turkiye
Vakiflar Bankasi T.A.O., Sr. Unsecd. Note, 144A, 9.000%, 10/12/2028 |
1,051,520
|
|
3,600,000
|
|
Turkiye
Varlik Fonu Yonetimi AS, Sr. Unsecd. Note, 8.250%, 2/14/2029 |
3,678,865
|
|
|
|
TOTAL
|
10,117,935
|
|
|
|
Chemicals
& Plastics—0.6% |
|
|
3,800,000
|
|
OCP
S.A., Sr. Unsecd. Note, 144A, 5.125%, 6/23/2051 |
2,795,361
|
|
1,500,000
|
|
OCP
S.A., Sr. Unsecd. Note, REGS, 3.750%, 6/23/2031 |
1,325,527
|
|
|
|
TOTAL
|
4,120,888
|
|
|
|
Finance—0.5%
|
|
|
1,700,000
|
|
China
Overseas Finance Cayman VII Ltd., Sr. Unsecd. Note, 4.750%, 4/26/2028 |
1,700,254
|
|
2,000,000
|
1
|
MAF
Global Securities Ltd., Jr. Sub. Deb., 6.375%, 3/20/2026 |
2,003,313
|
|
|
|
TOTAL
|
3,703,567
|
|
|
|
Financial
Intermediaries—0.1% |
|
|
400,000
|
|
CFAMC
III Co. Ltd., Sr. Unsecd. Note, Series EMTN, 4.250%, 11/7/2027 |
390,072
|
|
|
|
Oil
& Gas—10.1% |
|
|
5,000,000
|
|
Ecopetrol
S.A., Sr. Unsecd. Note, 6.875%, 4/29/2030 |
4,870,491
|
|
2,500,000
|
|
Ecopetrol
S.A., Sr. Unsecd. Note, 8.375%, 1/19/2036 |
2,341,781
|
|
2,300,000
|
|
Ecopetrol
S.A., Sr. Unsecd. Note, 8.625%, 1/19/2029 |
2,406,614
|
|
3,400,000
|
|
Ecopetrol
S.A., Sr. Unsecd. Note, 8.875%, 1/13/2033 |
3,405,569
|
|
900,000
|
|
Edo
Sukuk Ltd., Sr. Unsecd. Note, 144A, 5.875%, 9/21/2033 |
915,295
|
|
9,100,000
|
|
Petrobras
Global Finance B.V., Sr. Unsecd. Note, 6.000%, 1/13/2035 |
8,628,665
|
|
500,000
|
|
Petroleos
del Peru S.A., Sr. Unsecd. Note, REGS, 4.750%, 6/19/2032 |
368,808
|
|
1,500,000
|
|
Petroleos
del Peru S.A., Sr. Unsecd. Note, REGS, 5.625%, 6/19/2047 |
925,290
|
|
750,000
|
|
Petroleos
Mexicanos, 6.500%, 6/2/2041 |
517,021
|
|
5,750,000
|
|
Petroleos
Mexicanos, Co. Guarantee, 6.625%, 6/15/2035 |
4,441,479
|
|
3,000,000
|
|
Petroleos
Mexicanos, Sr. Note, 6.840%, 1/23/2030 |
2,674,080
|
|
1,100,000
|
|
Petroleos
Mexicanos, Sr. Secd. Note, 10.000%, 2/7/2033 |
1,102,423
|
|
2,450,000
|
|
Petroleos
Mexicanos, Sr. Unsecd. Note, 5.950%, 1/28/2031 |
2,028,573
|
|
9,500,000
|
|
Petroleos
Mexicanos, Sr. Unsecd. Note, 6.500%, 3/13/2027 |
9,288,023
|
|
2,500,000
|
|
Petroleos
Mexicanos, Sr. Unsecd. Note, 6.700%, 2/16/2032 |
2,144,465
|
|
6,800,000
|
|
Petroleos
Mexicanos, Sr. Unsecd. Note, 6.750%, 9/21/2047 |
4,571,299
|
|
3,750,000
|
|
Petroleos
Mexicanos, Sr. Unsecd. Note, 6.950%, 1/28/2060 |
2,500,574
|
|
6,000,000
|
|
Petroleos
Mexicanos, Sr. Unsecd. Note, 7.690%, 1/23/2050 |
4,381,344
|
|
1,000,000
|
|
Petroleos
Mexicanos, Sr. Unsecd. Note, 8.750%, 6/2/2029 |
984,083
|
|
250,000
|
|
Petroleos
Mexicanos, Sr. Unsecd. Note, Series WI, 5.350%, 2/12/2028 |
231,235
|
|
5,500,000
|
|
Petroleos
Mexicanos, Sr. Unsecd. Note, Series WI, 6.350%, 2/12/2048 |
3,554,572
|
|
200,000
|
|
Petronas
Capital Ltd., Sr. Unsecd. Note, 144A, 4.550%, 4/21/2050 |
168,840
|
|
2,000,000
|
|
Qatar
Petroleum, Sr. Unsecd. Note, REGS, 3.125%, 7/12/2041 |
1,473,565
|
|
800,000
|
|
Southern
Gas Corridor CJSC, Sr. Unsecd. Note, REGS, 6.875%, 3/24/2026 |
808,620
|
|
985,000
|
|
YPF
Sociedad Anonima, Sec. Fac. Bond, 9.500%, 1/17/2031 |
1,016,771
|
|
1,550,000
|
|
YPF
Sociedad Anonima, Sr. Unsecd. Note, 144A, 8.750%, 9/11/2031 |
1,570,500
|
|
1,750,000
|
|
YPF
Sociedad Anonima, Sr. Unsecd. Note, 144A, 9.000%, 6/30/2029 |
1,797,402
|
Semi-Annual
Financial Statements and Additional Information
1
|
Principal
Amount
or
Shares |
|
|
Value
in
U.S.
Dollars |
|
|
|
FOREIGN
GOVERNMENTS/AGENCIES—continued
|
|
|
|
|
Oil
& Gas—continued |
|
|
$ 1,000,000
|
|
YPF
Sociedad Anonima, Sr. Unsecd. Note, REGS, 7.000%, 12/15/2047 |
$ 851,939
|
|
|
|
TOTAL
|
69,969,321
|
|
|
|
Real
Estate—0.2% |
|
|
1,100,000
|
|
China
Great Wall International Holdings III Ltd., Sr. Unsecd. Note, Series EMTN, 3.875%, 8/31/2027 |
1,073,786
|
|
|
|
Sovereign—59.1%
|
|
|
1,000,000
|
|
Abu
Dhabi, Government of, Sr. Unsecd. Note, REGS, 3.000%, 9/15/2051 |
655,500
|
|
1,100,000
|
|
Angola,
Government of, Sr. Unsecd. Note, 144A, 8.000%, 11/26/2029 |
876,656
|
|
2,100,000
|
|
Angola,
Government of, Sr. Unsecd. Note, 144A, 8.750%, 4/14/2032 |
1,647,240
|
|
1,800,000
|
|
Angola,
Government of, Sr. Unsecd. Note, REGS, 9.500%, 11/12/2025 |
1,759,550
|
|
9,286,496
|
|
Argentina
Bonar Bonds, Unsecd. Note, 0.750%, 7/9/2030 |
6,151,375
|
|
2,860,000
|
|
Argentina,
Government of, Series 3, 3.000%, 5/31/2026 |
2,746,029
|
|
14,419,571
|
|
Argentina,
Government of, Sr. Unsecd. Note, 0.750%, 7/9/2030 |
11,030,972
|
|
2,070,000
|
|
Argentina,
Government of, Sr. Unsecd. Note, 1.000%, 7/9/2029 |
1,664,280
|
|
8,800,000
|
|
Argentina,
Government of, Sr. Unsecd. Note, 3.500%, 7/9/2041 |
5,310,929
|
|
17,332,671
|
|
Argentina,
Government of, Sr. Unsecd. Note, 4.125%, 7/9/2035 |
11,558,878
|
|
2,296,591
|
|
Argentina,
Government of, Sr. Unsecd. Note, 4.125%, 7/9/2046 |
1,493,703
|
|
11,550,000
|
|
Argentina,
Government of, Sr. Unsecd. Note, 5.000%, 1/9/2038 |
8,041,535
|
|
1,800,000
|
|
Argentina,
Government of, Unsecd. Note, 1.000%, 7/9/2029 |
1,268,046
|
|
11,500,000
|
|
Argentina,
Government of, Unsecd. Note, 4.125%, 7/9/2035 |
7,700,400
|
|
4,500,000
|
|
Argentina,
Government of, Unsecd. Note, 5.000%, 1/9/2038 |
3,110,940
|
|
1,140,000
|
|
Argentina,
Government of, Unsecd. Note, Series 1A, 5.000%, 10/31/2027 |
1,107,271
|
|
1,500,000
|
|
Argentina,
Government of, Unsecd. Note, Series 1C, 5.000%, 10/31/2027 |
1,354,500
|
|
1,260,000
|
|
Argentina,
Government of, Unsecd. Note, Series 1D, 5.000%, 10/31/2027 |
1,140,640
|
|
1,000,000
|
|
Armenia,
Government of, Sr. Unsecd. Note, REGS, 3.950%, 9/26/2029 |
899,919
|
|
800,000
|
|
Azerbaijan,
Government of, Sr. Unsecd. Note, REGS, 3.500%, 9/1/2032 |
698,520
|
|
2,100,000
|
|
Bahrain,
Kingdom of, Sr. Unsecd. Note, 7.500%, 7/7/2037 |
2,100,000
|
|
2,600,000
|
|
Bahrain,
Kingdom of, Sr. Unsecd. Note, 144A, 5.250%, 1/25/2033 |
2,347,683
|
|
3,200,000
|
|
Bahrain,
Kingdom of, Sr. Unsecd. Note, 144A, 5.450%, 9/16/2032 |
2,952,320
|
|
1,300,000
|
|
Bahrain,
Kingdom of, Sr. Unsecd. Note, 144A, 5.625%, 5/18/2034 |
1,183,000
|
|
1,000,000
|
|
Bahrain,
Kingdom of, Sr. Unsecd. Note, 144A, 7.375%, 5/14/2030 |
1,039,657
|
|
2,500,000
|
|
Bahrain,
Kingdom of, Sr. Unsecd. Note, REGS, 5.250%, 1/25/2033 |
2,256,515
|
|
2,500,000
|
|
Bahrain,
Kingdom of, Sr. Unsecd. Note, REGS, 5.625%, 9/30/2031 |
2,351,575
|
|
3,200,000
|
|
Bahrain,
Kingdom of, Sr. Unsecd. Note, REGS, 6.750%, 9/20/2029 |
3,249,229
|
|
EUR 1,300,000
|
|
Benin,
Government of, Sr. Unsecd. Note, 144A, 4.950%, 1/22/2035 |
1,188,297
|
|
$ 600,000
|
|
Benin,
Government of, Sr. Unsecd. Note, 144A, 7.960%, 2/13/2038 |
539,766
|
|
200,000
|
|
Benin,
Government of, Sr. Unsecd. Note, 144A, 8.375%, 1/23/2041 |
182,800
|
|
500,000
|
|
Bolivia,
Government of, Sr. Unsecd. Note, 144A, 4.500%, 3/20/2028 |
325,000
|
|
1,300,000
|
|
Bolivia,
Government of, Sr. Unsecd. Note, REGS, 4.500%, 3/20/2028 |
845,000
|
|
1,000,000
|
|
Bolivia,
Government of, Sr. Unsecd. Note, REGS, 7.500%, 3/2/2030 |
649,520
|
|
3,000,000
|
|
Brazil,
Government of, Bond, 8.250%, 1/20/2034 |
3,345,747
|
|
5,000,000
|
|
Brazil,
Government of, Sr. Secd. Note, 5.625%, 2/21/2047 |
4,069,025
|
|
5,500,000
|
|
Brazil,
Government of, Sr. Unsecd. Note, 3.750%, 9/12/2031 |
4,936,433
|
|
3,000,000
|
|
Brazil,
Government of, Sr. Unsecd. Note, 4.750%, 1/14/2050 |
2,108,469
|
|
4,450,000
|
|
Brazil,
Government of, Sr. Unsecd. Note, 6.000%, 10/20/2033 |
4,383,004
|
|
1,700,000
|
|
Brazil,
Government of, Sr. Unsecd. Note, 6.125%, 3/15/2034 |
1,663,542
|
|
4,000,000
|
|
Brazil,
Government of, Sr. Unsecd. Note, 6.250%, 3/18/2031 |
4,110,986
|
|
3,175,000
|
|
Brazil,
Government of, Sr. Unsecd. Note, 6.625%, 3/15/2035 |
3,164,404
|
|
5,183,000
|
|
Brazil,
Government of, Sr. Unsecd. Note, 7.125%, 5/13/2054 |
4,909,698
|
|
4,500,000
|
|
Colombia,
Government of, 7.375%, 9/18/2037 |
4,164,321
|
|
1,500,000
|
|
Colombia,
Government of, 8.375%, 11/7/2054 |
1,371,937
|
Semi-Annual
Financial Statements and Additional Information
2
|
Principal
Amount
or
Shares |
|
|
Value
in
U.S.
Dollars |
|
|
|
FOREIGN
GOVERNMENTS/AGENCIES—continued
|
|
|
|
|
Sovereign—continued
|
|
|
$ 1,500,000
|
|
Colombia,
Government of, Sr. Unsecd. Note, 3.250%, 4/22/2032 |
$ 1,155,680
|
|
1,500,000
|
|
Colombia,
Government of, Sr. Unsecd. Note, 3.875%, 2/15/2061 |
764,613
|
|
6,000,000
|
|
Colombia,
Government of, Sr. Unsecd. Note, 4.500%, 3/15/2029 |
5,631,548
|
|
4,000,000
|
|
Colombia,
Government of, Sr. Unsecd. Note, 5.000%, 6/15/2045 |
2,599,112
|
|
700,000
|
|
Colombia,
Government of, Sr. Unsecd. Note, 7.375%, 4/25/2030 |
709,905
|
|
2,013,000
|
|
Colombia,
Government of, Sr. Unsecd. Note, 7.500%, 2/2/2034 |
1,959,582
|
|
2,850,000
|
|
Colombia,
Government of, Sr. Unsecd. Note, 7.750%, 11/7/2036 |
2,714,790
|
|
6,000,000
|
|
Colombia,
Government of, Sr. Unsecd. Note, 8.000%, 4/20/2033 |
6,092,885
|
|
1,500,000
|
|
Colombia,
Government of, Sr. Unsecd. Note, 8.000%, 11/14/2035 |
1,470,841
|
|
700,000
|
|
Colombia,
Government of, Sr. Unsecd. Note, 8.500%, 4/25/2035 |
711,003
|
|
9,000,000
|
|
Colombia,
Government of, Sr. Unsecd. Note, 8.750%, 11/14/2053 |
8,602,129
|
|
2,000,000
|
|
Costa
Rica, Government of, Sr. Unsecd. Note, REGS, 6.125%, 2/19/2031 |
2,043,645
|
|
3,000,000
|
|
Costa
Rica, Government of, Sr. Unsecd. Note, REGS, 6.550%, 4/3/2034 |
3,066,000
|
|
2,500,000
|
|
Costa
Rica, Government of, Unsecd. Note, 144A, 7.300%, 11/13/2054 |
2,543,608
|
|
1,000,000
|
|
Dominican
Republic, Government of, Sr. Unsecd. Note, 144A, 4.500%, 1/30/2030 |
929,400
|
|
2,650,000
|
|
Dominican
Republic, Government of, Sr. Unsecd. Note, 144A, 4.875%, 9/23/2032 |
2,376,388
|
|
2,800,000
|
|
Dominican
Republic, Government of, Sr. Unsecd. Note, 144A, 6.000%, 2/22/2033 |
2,700,040
|
|
500,000
|
|
Dominican
Republic, Government of, Sr. Unsecd. Note, 144A, 6.950%, 3/15/2037 |
496,400
|
|
500,000
|
|
Dominican
Republic, Government of, Sr. Unsecd. Note, 144A, 7.150%, 2/24/2055 |
489,050
|
|
1,500,000
|
|
Dominican
Republic, Government of, Sr. Unsecd. Note, 144A, 7.450%, 4/30/2044 |
1,533,825
|
|
5,500,000
|
|
Dominican
Republic, Government of, Sr. Unsecd. Note, REGS, 4.875%, 9/23/2032 |
4,932,125
|
|
5,450,000
|
|
Dominican
Republic, Government of, Sr. Unsecd. Note, REGS, 5.875%, 1/30/2060 |
4,480,172
|
|
3,000,000
|
|
Dominican
Republic, Government of, Sr. Unsecd. Note, REGS, 5.950%, 1/25/2027 |
3,010,200
|
|
3,000,000
|
|
Dominican
Republic, Government of, Sr. Unsecd. Note, REGS, 6.000%, 7/19/2028 |
3,017,100
|
|
1,400,000
|
|
Dominican
Republic, Government of, Sr. Unsecd. Note, REGS, 6.000%, 2/22/2033 |
1,350,020
|
|
1,200,000
|
|
Dominican
Republic, Government of, Sr. Unsecd. Note, REGS, 6.850%, 1/27/2045 |
1,151,640
|
|
500,000
|
|
Dominican
Republic, Government of, Sr. Unsecd. Note, REGS, 7.450%, 4/30/2044 |
511,275
|
|
800,000
|
2
|
Ecuador,
Government of, Sr. Unsecd. Note, REGS, 0.000%, 7/31/2030 |
486,431
|
|
5,215,000
|
|
Ecuador,
Government of, Sr. Unsecd. Note, REGS, 5.000%, 7/31/2040 |
2,718,997
|
|
3,899,453
|
|
Ecuador,
Government of, Sr. Unsecd. Note, REGS, 5.500%, 7/31/2035 |
2,338,552
|
|
4,715,543
|
|
Ecuador,
Government of, Sr. Unsecd. Note, REGS, 6.900%, 7/31/2030 |
3,524,161
|
|
EGP 212,800,000
|
2
|
Egypt
Treasury Bill, Series 364D, 0.000%, 7/29/2025 |
3,920,447
|
|
221,100,000
|
2
|
Egypt
Treasury Bill, Series 364D, 0.000%, 10/7/2025 |
3,896,601
|
|
$ 1,300,000
|
|
Egypt,
Government of, 144A, 8.625%, 2/4/2030 |
1,240,096
|
|
EUR 500,000
|
|
Egypt,
Government of, Sr. Unsecd. Note, 144A, 6.375%, 4/11/2031 |
489,749
|
|
$ 1,700,000
|
|
Egypt,
Government of, Sr. Unsecd. Note, 144A, 7.052%, 1/15/2032 |
1,419,500
|
|
900,000
|
|
Egypt,
Government of, Sr. Unsecd. Note, 144A, 7.300%, 9/30/2033 |
726,869
|
|
1,600,000
|
|
Egypt,
Government of, Sr. Unsecd. Note, 144A, 7.600%, 3/1/2029 |
1,504,000
|
|
400,000
|
|
Egypt,
Government of, Sr. Unsecd. Note, 144A, 7.625%, 5/29/2032 |
340,472
|
|
2,800,000
|
|
Egypt,
Government of, Sr. Unsecd. Note, 144A, 8.750%, 9/30/2051 |
2,061,606
|
|
5,200,000
|
|
Egypt,
Government of, Sr. Unsecd. Note, 144A, 8.875%, 5/29/2050 |
3,884,400
|
|
2,100,000
|
|
Egypt,
Government of, Sr. Unsecd. Note, REGS, 5.875%, 2/16/2031 |
1,706,250
|
|
EUR 500,000
|
|
Egypt,
Government of, Sr. Unsecd. Note, REGS, 6.375%, 4/11/2031 |
489,749
|
|
$ 1,600,000
|
|
Egypt,
Government of, Sr. Unsecd. Note, REGS, 6.588%, 2/21/2028 |
1,497,888
|
|
5,800,000
|
|
Egypt,
Government of, Sr. Unsecd. Note, REGS, 7.625%, 5/29/2032 |
4,936,670
|
|
1,100,000
|
|
Egypt,
Government of, Sr. Unsecd. Note, REGS, 7.903%, 2/21/2048 |
757,350
|
|
1,200,000
|
|
Egypt,
Government of, Sr. Unsecd. Note, REGS, 8.700%, 3/1/2049 |
900,000
|
|
1,000,000
|
|
El
Salvador, Government of, 144A, 8.250%, 4/10/2032 |
985,710
|
|
1,500,000
|
|
El
Salvador, Government of, Sr. Unsecd. Note, 144A, 0.250%, 4/17/2030 |
30,680
|
|
1,500,000
|
|
El
Salvador, Government of, Sr. Unsecd. Note, 144A, 9.250%, 4/17/2030 |
1,543,521
|
Semi-Annual
Financial Statements and Additional Information
3
|
Principal
Amount
or
Shares |
|
|
Value
in
U.S.
Dollars |
|
|
|
FOREIGN
GOVERNMENTS/AGENCIES—continued
|
|
|
|
|
Sovereign—continued
|
|
|
$ 650,000
|
|
El
Salvador, Government of, Sr. Unsecd. Note, 144A, 9.650%, 11/21/2054 |
$ 644,209
|
|
1,000,000
|
|
El
Salvador, Government of, Sr. Unsecd. Note, REGS, 7.124%, 1/20/2050 |
804,470
|
|
3,000,000
|
|
El
Salvador, Government of, Sr. Unsecd. Note, REGS, 8.250%, 4/10/2032 |
2,957,129
|
|
1,100,000
|
|
Gabon,
Government of, Sr. Unsecd. Note, 144A, 7.000%, 11/24/2031 |
777,040
|
|
141,600
|
2
|
Ghana,
Government of, Sr. Unsecd. Note, 144A, 0.000%, 7/3/2026 |
133,670
|
|
248,390
|
2
|
Ghana,
Government of, Sr. Unsecd. Note, 144A, 0.000%, 1/3/2030 |
188,802
|
|
3,427,800
|
|
Ghana,
Government of, Sr. Unsecd. Note, 144A, 5.000%, 7/3/2029 |
2,925,799
|
|
4,053,200
|
|
Ghana,
Government of, Sr. Unsecd. Note, 144A, 5.000%, 7/3/2035 |
2,756,176
|
|
2,500,000
|
|
Ghana,
Government of, Sr. Unsecd. Note, REGS, 5.000%, 7/3/2029 |
2,134,250
|
|
1,000,000
|
|
Guatemala,
Government of, 144A, 7.050%, 10/4/2032 |
1,048,490
|
|
4,500,000
|
|
Guatemala,
Government of, Sr. Unsecd. Note, 144A, 6.050%, 8/6/2031 |
4,473,717
|
|
3,000,000
|
|
Guatemala,
Government of, Sr. Unsecd. Note, REGS, 4.650%, 10/7/2041 |
2,312,959
|
|
1,000,000
|
|
Guatemala,
Government of, Sr. Unsecd. Note, REGS, 4.875%, 2/13/2028 |
980,000
|
|
3,000,000
|
|
Guatemala,
Government of, Sr. Unsecd. Note, REGS, 5.375%, 4/24/2032 |
2,878,747
|
|
2,000,000
|
|
Guatemala,
Government of, Sr. Unsecd. Note, REGS, 6.600%, 6/13/2036 |
1,997,532
|
|
1,250,000
|
|
Guatemala,
Government of, Sr. Unsecd. Note, REGS, 7.050%, 10/4/2032 |
1,310,613
|
|
1,000,000
|
|
Guatemala,
Government of, Unsecd. Note, REGS, 5.250%, 8/10/2029 |
983,735
|
|
1,200,000
|
|
Honduras,
Government of, Sr. Unsecd. Note, 144A, 8.625%, 11/27/2034 |
1,189,800
|
|
2,200,000
|
|
Honduras,
Government of, Sr. Unsecd. Note, REGS, 5.625%, 6/24/2030 |
2,003,100
|
|
800,000
|
|
Ivory
Coast, Government of, Sr. Unsecd. Note, 144A, 6.125%, 6/15/2033 |
689,712
|
|
1,900,000
|
|
Ivory
Coast, Government of, Sr. Unsecd. Note, 144A, 8.075%, 4/1/2036 |
1,756,257
|
|
900,000
|
|
Ivory
Coast, Government of, Sr. Unsecd. Note, 144A, 8.250%, 1/30/2037 |
826,396
|
|
1,430,835
|
|
Ivory
Coast, Government of, Sr. Unsecd. Note, REGS, 5.750%, 12/31/2032 |
1,314,651
|
|
3,500,000
|
|
Ivory
Coast, Government of, Sr. Unsecd. Note, REGS, 6.125%, 6/15/2033 |
3,017,490
|
|
1,300,000
|
|
Jordan,
Government of, Sr. Unsecd. Note, 144A, 5.850%, 7/7/2030 |
1,197,586
|
|
600,000
|
|
Kenya,
Government of, Sr. Unsecd. Note, 144A, 6.300%, 1/23/2034 |
462,873
|
|
2,000,000
|
|
Kenya,
Government of, Sr. Unsecd. Note, 144A, 9.500%, 3/5/2036 |
1,754,584
|
|
300,000
|
|
Kenya,
Government of, Sr. Unsecd. Note, 144A, 9.750%, 2/16/2031 |
285,870
|
|
200,000
|
|
Kenya,
Government of, Sr. Unsecd. Note, REGS, 7.250%, 2/28/2028 |
188,000
|
|
3,000,000
|
|
Kenya,
Government of, Sr. Unsecd. Note, REGS, 8.000%, 5/22/2032 |
2,642,160
|
|
800,000
|
|
Kenya,
Government of, Sr. Unsecd. Note, REGS, 8.250%, 2/28/2048 |
597,234
|
|
1,700,000
|
3,4
|
Lebanon,
Government of, Sr. Secd. Note, Series EMTN, 6.100%, 12/31/2099 |
289,000
|
|
1,000,000
|
3,4
|
Lebanon,
Government of, Sr. Unsecd. Note, 6.000%, 12/31/2099 |
170,990
|
|
700,000
|
|
Mongolia,
Government of, Sr. Unsecd. Note, 144A, 6.625%, 2/25/2030 |
672,902
|
|
800,000
|
|
Mongolia,
Government of, Sr. Unsecd. Note, REGS, 3.500%, 7/7/2027 |
737,276
|
|
1,650,000
|
|
Nigeria,
Government of, Sr. Unsecd. Note, 144A, 7.375%, 9/28/2033 |
1,349,453
|
|
2,000,000
|
|
Nigeria,
Government of, Sr. Unsecd. Note, 144A, 8.375%, 3/24/2029 |
1,894,040
|
|
1,100,000
|
|
Nigeria,
Government of, Sr. Unsecd. Note, 144A, 9.625%, 6/9/2031 |
1,035,430
|
|
2,250,000
|
|
Nigeria,
Government of, Sr. Unsecd. Note, REGS, 6.125%, 9/28/2028 |
2,024,438
|
|
2,200,000
|
|
Nigeria,
Government of, Sr. Unsecd. Note, REGS, 6.500%, 11/28/2027 |
2,068,748
|
|
1,000,000
|
|
Nigeria,
Government of, Sr. Unsecd. Note, REGS, 7.143%, 2/23/2030 |
877,050
|
|
1,750,000
|
|
Nigeria,
Government of, Sr. Unsecd. Note, REGS, 7.625%, 11/28/2047 |
1,254,876
|
|
1,100,000
|
|
Nigeria,
Government of, Sr. Unsecd. Note, REGS, 8.375%, 3/24/2029 |
1,041,854
|
|
2,150,000
|
|
Nigeria,
Government of, Sr. Unsecd. Note, REGS, 8.747%, 1/21/2031 |
1,985,998
|
|
800,000
|
|
Nigeria,
Government of, Unsecd. Note, REGS, 7.875%, 2/16/2032 |
693,040
|
|
1,600,000
|
|
Oman,
Government of, Sr. Unsecd. Note, REGS, 6.500%, 3/8/2047 |
1,587,450
|
|
1,900,000
|
|
Oman,
Government of, Sr. Unsecd. Note, REGS, 6.750%, 1/17/2048 |
1,920,391
|
|
1,500,000
|
|
Oman,
Government of, Sr. Unsecd. Note, REGS, 7.000%, 1/25/2051 |
1,560,126
|
|
3,800,000
|
|
Pakistan,
Government of, Sr. Secd. Note, REGS, 6.875%, 12/5/2027 |
3,337,434
|
|
2,300,000
|
|
Pakistan,
Government of, Sr. Unsecd. Note, REGS, 6.000%, 4/8/2026 |
2,168,049
|
Semi-Annual
Financial Statements and Additional Information
4
|
Principal
Amount
or
Shares |
|
|
Value
in
U.S.
Dollars |
|
|
|
FOREIGN
GOVERNMENTS/AGENCIES—continued
|
|
|
|
|
Sovereign—continued
|
|
|
$ 1,300,000
|
|
Pakistan,
Government of, Sr. Unsecd. Note, REGS, 7.375%, 4/8/2031 |
$ 1,021,280
|
|
700,000
|
|
Pakistan,
Government of, Sr. Unsecd. Note, REGS, 7.950%, 1/31/2029 |
614,775
|
|
1,400,000
|
|
Pakistan,
Government of, Sr. Unsecd. Note, REGS, 8.250%, 9/30/2025 |
1,376,200
|
|
4,000,000
|
|
Paraguay,
Government of, 144A, 5.400%, 3/30/2050 |
3,395,000
|
|
1,500,000
|
|
Paraguay,
Government of, Sr. Unsecd. Note, 144A, 2.739%, 1/29/2033 |
1,260,000
|
|
2,000,000
|
|
Paraguay,
Government of, Sr. Unsecd. Note, REGS, 3.849%, 6/28/2033 |
1,795,000
|
|
1,000,000
|
|
Qatar,
Government of, Sr. Unsecd. Note, REGS, 4.400%, 4/16/2050 |
847,560
|
|
300,000
|
|
Romania,
Government of, Sr. Unsecd. Note, 144A, 6.375%, 1/30/2034 |
284,172
|
|
EUR 800,000
|
|
Romania,
Government of, Sr. Unsecd. Note, 144A, 6.750%, 7/11/2039 |
892,611
|
|
$ 500,000
|
|
Romania,
Government of, Sr. Unsecd. Note, REGS, 3.625%, 3/27/2032 |
414,940
|
|
900,000
|
|
Rwanda,
Government of, Sr. Unsecd. Note, 144A, 5.500%, 8/9/2031 |
705,456
|
|
500,000
|
|
Saudi
Arabia, Government of, Sr. Unsecd. Note, 144A, 5.000%, 1/18/2053 |
423,905
|
|
1,500,000
|
|
Saudi
Arabia, Government of, Sr. Unsecd. Note, REGS, 3.450%, 2/2/2061 |
921,300
|
|
EUR 2,500,000
|
|
Senegal,
Government of, Sr. Unsecd. Note, 144A, 5.375%, 6/8/2037 |
1,809,477
|
|
$ 4,500,000
|
|
Senegal,
Government of, Sr. Unsecd. Note, REGS, 6.250%, 5/23/2033 |
3,133,080
|
|
800,000
|
|
Senegal,
Government of, Sr. Unsecd. Note, REGS, 6.750%, 3/13/2048 |
489,728
|
|
1,100,000
|
|
Serbia,
Government of, Sr. Unsecd. Note, 144A, 6.500%, 9/26/2033 |
1,134,529
|
|
200,000
|
|
Serbia,
Government of, Sr. Unsecd. Note, REGS, 2.125%, 12/1/2030 |
166,819
|
|
800,000
|
|
Sharjah
Govt., Sr. Unsecd. Note, REGS, 4.000%, 7/28/2050 |
508,243
|
|
500,000
|
|
South
Africa, Government of, 144A, 7.100%, 11/19/2036 |
476,582
|
|
1,800,000
|
|
South
Africa, Government of, Sr. Unsecd. Note, 4.850%, 9/30/2029 |
1,696,320
|
|
2,500,000
|
|
South
Africa, Government of, Sr. Unsecd. Note, 5.000%, 10/12/2046 |
1,665,675
|
|
1,300,000
|
|
South
Africa, Government of, Sr. Unsecd. Note, 5.650%, 9/27/2047 |
933,920
|
|
600,000
|
|
South
Africa, Government of, Sr. Unsecd. Note, 6.300%, 6/22/2048 |
466,422
|
|
4,000,000
|
|
Sri
Lanka, Government of, Sr. Unsecd. Note, 144A, 3.100%, 1/15/2030 |
3,258,939
|
|
4,000,000
|
|
Sri
Lanka, Government of, Sr. Unsecd. Note, 144A, 3.350%, 3/15/2033 |
2,770,000
|
|
2,190,000
|
|
Sri
Lanka, Government of, Sr. Unsecd. Note, 144A, 4.000%, 4/15/2028 |
2,006,697
|
|
750,000
|
|
Trinidad
and Tobago, Government of, REGS, 5.950%, 1/14/2031 |
713,587
|
|
750,000
|
|
Trinidad
and Tobago, Government of, Sr. Unsecd. Note, REGS, 6.400%, 6/26/2034 |
706,656
|
|
5,000,000
|
|
Turkey,
Government of, Sr. Unsecd. Note, 4.875%, 4/16/2043 |
3,376,260
|
|
2,400,000
|
|
Turkey,
Government of, Sr. Unsecd. Note, 5.250%, 3/13/2030 |
2,217,036
|
|
4,200,000
|
|
Turkey,
Government of, Sr. Unsecd. Note, 5.750%, 5/11/2047 |
3,034,609
|
|
7,200,000
|
|
Turkey,
Government of, Sr. Unsecd. Note, 5.875%, 6/26/2031 |
6,653,268
|
|
2,500,000
|
|
Turkey,
Government of, Sr. Unsecd. Note, 5.950%, 1/15/2031 |
2,332,130
|
|
2,000,000
|
|
Turkey,
Government of, Sr. Unsecd. Note, 6.000%, 1/14/2041 |
1,591,976
|
|
1,500,000
|
|
Turkey,
Government of, Sr. Unsecd. Note, 6.500%, 9/20/2033 |
1,389,435
|
|
2,500,000
|
|
Turkey,
Government of, Sr. Unsecd. Note, 6.500%, 1/3/2035 |
2,287,676
|
|
2,000,000
|
|
Turkey,
Government of, Sr. Unsecd. Note, 6.750%, 5/30/2040 |
1,762,296
|
|
3,500,000
|
|
Turkey,
Government of, Sr. Unsecd. Note, 6.875%, 3/17/2036 |
3,271,177
|
|
3,000,000
|
|
Turkey,
Government of, Sr. Unsecd. Note, 7.625%, 4/26/2029 |
3,060,060
|
|
2,000,000
|
|
Turkey,
Government of, Sr. Unsecd. Note, 9.125%, 7/13/2030 |
2,165,604
|
|
1,000,000
|
|
Turkey,
Government of, Sr. Unsecd. Note, 9.375%, 3/14/2029 |
1,078,048
|
|
5,500,000
|
|
Turkey,
Government of, Sr. Unsecd. Note, 9.375%, 1/19/2033 |
6,034,490
|
|
2,600,000
|
|
Turkey,
Government of, Sr. Unsecd. Note, REGS, 5.125%, 6/22/2026 |
2,573,605
|
|
2,600,000
|
|
Turkey,
Government of, Sr. Unsecd. Note, REGS, 7.250%, 2/24/2027 |
2,639,218
|
|
4,900,000
|
|
Turkey,
Government of, Unsecd. Note, 6.625%, 2/17/2045 |
4,001,977
|
|
529,527
|
2,3
|
Ukraine,
Government of, Sr. Unsecd. Note, 144A, 0.000%, 2/1/2030 |
259,182
|
|
1,978,771
|
2,3
|
Ukraine,
Government of, Sr. Unsecd. Note, 144A, 0.000%, 2/1/2034 |
761,332
|
|
4,172,198
|
2,3
|
Ukraine,
Government of, Sr. Unsecd. Note, 144A, 0.000%, 2/1/2035 |
2,098,991
|
|
1,393,498
|
2,3
|
Ukraine,
Government of, Sr. Unsecd. Note, 144A, 0.000%, 2/1/2036 |
697,348
|
Semi-Annual
Financial Statements and Additional Information
5
|
Principal
Amount
or
Shares |
|
|
Value
in
U.S.
Dollars |
|
|
|
FOREIGN
GOVERNMENTS/AGENCIES—continued
|
|
|
|
|
Sovereign—continued
|
|
|
$ 2,575,651
|
3
|
Ukraine,
Government of, Sr. Unsecd. Note, 144A, 1.750%, 2/1/2035 |
$ 1,266,808
|
|
1,028,864
|
3
|
Ukraine,
Government of, Sr. Unsecd. Note, 144A, 1.750%, 2/1/2036 |
496,102
|
|
1,505,000
|
3,4
|
Ukraine,
Government of, Unsecd. Note, 144A, 7.750%, 8/1/2041 |
1,074,251
|
|
800,000
|
|
United
Arab Emirates, Government of, Sr. Unsecd. Note, REGS, 4.375%, 3/10/2051 |
544,032
|
|
500,000
|
|
United
Arab Emirates, Government of, Sr. Unsecd. Note, Series EMTN, 4.226%, 3/14/2028 |
488,278
|
|
1,500,000
|
|
Uzbekistan,
Government of, Sr. Unsecd. Note, REGS, 5.375%, 2/20/2029 |
1,458,000
|
|
1,000,000
|
3,4
|
Venezuela,
Government of, Sr. Unsecd. Note, 7.000%, 3/31/2038 |
150,000
|
|
399,711
|
|
Zambia,
Government of, Sr. Unsecd. Note, REGS, 0.500%, 12/31/2053 |
227,715
|
|
479,681
|
|
Zambia,
Government of, Unsecd. Note, REGS, 5.750%, 6/30/2033 |
416,699
|
|
|
|
TOTAL
|
407,295,558
|
|
|
|
State/Provincial—1.2%
|
|
|
255,426
|
|
Bono
Gar Prov Del Chubut, Term Loan - 1st Lien, REGS, 7.750%, 7/26/2030 |
246,486
|
|
234,000
|
|
Brazil
Minas SPE, Sec. Fac. Bond, 144A, 5.333%, 2/15/2028 |
233,920
|
|
1,079,000
|
|
Buenos
Aires, City of, Sr. Unsecd. Note, 144A, 7.500%, 6/1/2027 |
1,072,203
|
|
2,364,670
|
|
Provincia
De Buenos Aires, Sr. Unsecd. Note, 144A, 6.625%, 9/1/2037 |
1,584,329
|
|
4,469,275
|
|
Provincia
De Buenos Aires, Sr. Unsecd. Note, REGS, 6.625%, 9/1/2037 |
2,994,414
|
|
708,401
|
|
Provincia
De Cordoba, Sr. Unsecd. Note, 144A, 6.990%, 6/1/2027 |
674,752
|
|
1,103,000
|
|
Provincia
De Cordoba, Sr. Unsecd. Note, REGS, 6.990%, 6/1/2027 |
1,050,607
|
|
117,485
|
|
Provincia
de Entre Rios Argentina, Sr. Unsecd. Note, 144A, 8.250%, 8/8/2028 |
112,786
|
|
307,692
|
|
Provincia
De Mendoza, REGS, 5.750%, 3/19/2029 |
284,615
|
|
|
|
TOTAL
|
8,254,112
|
|
|
|
Telecommunications
& Cellular—0.5% |
|
|
1,200,000
|
|
Oryx
Funding Ltd., Sr. Unsecd. Note, REGS, 5.800%, 2/3/2031 |
1,203,204
|
|
300,000
|
|
Telecommunications
co.Telekom Srbija Akcionarsko drustvo, Sr. Unsecd. Note, 144A, 7.000%, 10/28/2029 |
298,404
|
|
2,200,000
|
|
Turk
Telekomunikasyon AS, Sr. Unsecd. Note, REGS, 7.375%, 5/20/2029 |
2,207,192
|
|
|
|
TOTAL
|
3,708,800
|
|
|
|
Transportation—0.2%
|
|
|
1,200,000
|
|
DP
World Ltd., Sr. Unsecd. Note, 144A, 4.700%, 9/30/2049 |
988,744
|
|
600,000
|
|
Transnet
SOC Ltd., Sr. Unsecd. Note, 144A, 8.250%, 2/6/2028 |
605,309
|
|
|
|
TOTAL
|
1,594,053
|
|
|
|
Utilities—1.6%
|
|
|
1,200,000
|
|
Eig
Pearl Holdings S.a.r.l., Sec. Fac. Bond, 144A, 4.387%, 11/30/2046 |
930,043
|
|
2,300,000
|
|
Eskom
Holdings Soc Ltd., Sr. Unsecd. Note, 144A, 6.350%, 8/10/2028 |
2,275,597
|
|
900,000
|
|
Eskom
Holdings Soc Ltd., Sr. Unsecd. Note, REGS, 6.350%, 8/10/2028 |
890,451
|
|
4,700,000
|
|
Eskom
Holdings Soc Ltd., Sr. Unsecd. Note, REGS, 8.450%, 8/10/2028 |
4,804,598
|
|
850,000
|
|
Instituto
Costarricense de Electricidad, Sr. Unsecd. Note, REGS, 6.375%, 5/15/2043 |
751,952
|
|
100,000
|
|
Israel
Electric Corp. Ltd., Sec. Fac. Bond, Series GMTN, 4.250%, 8/14/2028 |
97,188
|
|
400,000
|
|
Israel
Electric Corp. Ltd., Unsecd. Note, Series GMTN, 3.750%, 2/22/2032 |
358,372
|
|
800,000
|
|
Lamar
Funding Ltd., Sr. Unsecd. Note, REGS, 3.958%, 5/7/2025 |
800,112
|
|
|
|
TOTAL
|
10,908,313
|
|
|
|
TOTAL
FOREIGN GOVERNMENTS/AGENCIES
(IDENTIFIED
COST $482,923,891) |
521,136,405
|
|
|
|
CORPORATE
BONDS—20.6% |
|
|
|
|
Air
Transportation—0.3% |
|
|
800,732
|
|
Azul
Secured Finance LLP, 144A, 11.930%, 8/28/2028 |
483,186
|
|
198,485
|
|
Azul
Secured Finance LLP, Sec. Fac. Bond, 144A, 10.875%, 8/28/2030 |
37,874
|
|
1,300,000
|
|
Latam
Airlines Group S.A., 144A, 7.875%, 4/15/2030 |
1,274,000
|
|
|
|
TOTAL
|
1,795,060
|
|
|
|
Airport—0.4%
|
|
|
200,000
|
|
Aeropuertos
Dominicanos Siglo XXI S.A., Sec. Fac. Bond, 144A, 7.000%, 6/30/2034 |
203,313
|
Semi-Annual
Financial Statements and Additional Information
6
|
Principal
Amount
or
Shares |
|
|
Value
in
U.S.
Dollars |
|
|
|
CORPORATE
BONDS—continued |
|
|
|
|
Airport—continued
|
|
|
$ 1,315,000
|
|
Delhi
Intl. Airport Ltd., REGS, 6.450%, 6/4/2029 |
$ 1,322,640
|
|
1,250,000
|
|
GMR
Hyderabad International Airport Ltd., REGS, 4.250%, 10/27/2027 |
1,190,677
|
|
|
|
TOTAL
|
2,716,630
|
|
|
|
Automotive—0.3%
|
|
|
300,000
|
|
Nemak
SAB de CV, Sr. Unsecd. Note, 144A, 3.625%, 6/28/2031 |
241,849
|
|
2,000,000
|
|
Nemak
SAB de CV, Sr. Unsecd. Note, REGS, 3.625%, 6/28/2031 |
1,612,325
|
|
|
|
TOTAL
|
1,854,174
|
|
|
|
Banking—2.2%
|
|
|
600,000
|
1
|
Access
Bank PLC, Jr. Sub. Note, 144A, 9.125%, 10/7/2026 |
562,271
|
|
2,000,000
|
1
|
Akbank
T.A.S., 144A, 9.368%, 3/14/2029 |
2,001,608
|
|
2,300,000
|
3,4,5
|
Alfa
Bank (Alfa Bond), Sub., REGS, 5.950%, 4/15/2030 |
115,000
|
|
2,200,000
|
|
Banco
Bradesco S.A., 144A, 6.500%, 1/22/2030 |
2,284,304
|
|
480,000
|
|
Banco
Btg Pactual/Cayman, Sr. Unsecd. Note, 144A, 5.750%, 1/22/2030 |
478,896
|
|
500,000
|
|
Banco
Btg Pactual/Cayman, Sr. Unsecd. Note, 144A, 6.250%, 4/8/2029 |
513,756
|
|
1,000,000
|
|
Banco
Continental SAECA, Sr. Unsecd. Note, 144A, 2.750%, 12/10/2025 |
984,404
|
|
500,000
|
1
|
Banco
de Credito E Inversiones S.A., Jr. Sub. Deb., 144A, 8.750%, 2/8/2029 |
518,565
|
|
200,000
|
1
|
Banco
General S.A., Jr. Sub. Note, 144A, 5.250%, 5/7/2031 |
175,560
|
|
500,000
|
|
Banco
Industrial S.A., Sub., 144A, 4.875%, 1/29/2031 |
488,250
|
|
1,000,000
|
1
|
Banco
Mercantil De Norte, Jr. Sub. Deb., REGS, 7.500%, 6/27/2029 |
978,128
|
|
1,000,000
|
|
Bancolombia
S.A., Sub., 8.625%, 12/24/2034 |
1,038,746
|
|
1,000,000
|
|
ForteBank
JSC, Sr. Unsecd. Note, 144A, 7.750%, 2/4/2030 |
978,803
|
|
200,000
|
1
|
Itau
Unibanco Holding S.A., Sr. Unsecd. Note, REGS, 7.562%, 2/27/2025 |
199,955
|
|
1,000,000
|
|
Mashreqbank
PSC, Sub., 7.875%, 2/24/2033 |
1,053,974
|
|
1,500,000
|
|
OTP
Bank Nyrt, Sub., Series EMTN, 8.750%, 5/15/2033 |
1,591,035
|
|
1,800,000
|
1,3,4,5
|
SovCo
Capital Partners B.V., Jr. Sub. Note, 144A, 7.600%, 2/17/2027 |
90,000
|
|
500,000
|
|
Yapi
ve Kredi Bankasi A.S., 144A, 7.125%, 10/10/2029 |
493,847
|
|
700,000
|
|
Yapi
ve Kredi Bankasi A.S., Sub. Note, REGS, 7.875%, 1/22/2031 |
699,785
|
|
|
|
TOTAL
|
15,246,887
|
|
|
|
Beverage
& Tobacco—0.1% |
|
|
1,000,000
|
|
Central
American Bottling Corp. / CBC Bottling Holdco SL / Beliv Holdco SL, Sr. Unsecd. Note, REGS,
5.250%,
4/27/2029 |
957,733
|
|
|
|
Building
& Development—0.1% |
|
|
700,000
|
|
JSW
Infrastructure Ltd., Sec. Fac. Bond, 144A, 4.950%, 1/21/2029 |
668,716
|
|
|
|
Building
Materials—0.4% |
|
|
500,000
|
|
Cemex
S.A.B. de C.V., Sec. Fac. Bond, REGS, 5.450%, 11/19/2029 |
495,871
|
|
2,000,000
|
1
|
Cemex
S.A.B. de C.V., Sub., REGS, 5.125%, 11/19/2025 |
1,971,274
|
|
|
|
TOTAL
|
2,467,145
|
|
|
|
Chemicals
& Plastics—2.2% |
|
|
1,000,000
|
|
Braskem
Idesa S.A.P.I., Sec. Fac. Bond, REGS, 7.450%, 11/15/2029 |
773,300
|
|
300,000
|
|
Braskem
Netherlands Finance B.V., Sr. Unsecd. Note, 144A, 8.000%, 10/15/2034 |
267,900
|
|
1,300,000
|
|
Braskem
Netherlands Finance B.V., Sr. Unsecd. Note, 144A, 8.500%, 1/12/2031 |
1,248,315
|
|
1,000,000
|
|
Braskem
Netherlands Finance B.V., Sr. Unsecd. Note, REGS, 4.500%, 1/10/2028 |
900,183
|
|
2,000,000
|
|
Braskem
Netherlands Finance B.V., Sr. Unsecd. Note, REGS, 4.500%, 1/31/2030 |
1,659,480
|
|
1,000,000
|
|
Braskem
Netherlands Finance B.V., Sr. Unsecd. Note, REGS, 7.250%, 2/13/2033 |
875,493
|
|
3,400,000
|
|
Sasol
Financing USA LLC, Sr. Unsecd. Note, 5.500%, 3/18/2031 |
2,635,498
|
|
1,900,000
|
|
Sasol
Financing USA LLC, Sr. Unsecd. Note, 6.500%, 9/27/2028 |
1,766,162
|
|
1,900,000
|
|
Sasol
Financing USA LLC, Sr. Unsecd. Note, 144A, 8.750%, 5/3/2029 |
1,802,894
|
|
1,250,000
|
|
WE
Soda Investments Holding PLC, Sec. Fac. Bond, 144A, 9.375%, 2/14/2031 |
1,268,906
|
|
2,100,000
|
|
WE
Soda Investments Holding PLC, Sec. Fac. Bond, 144A, 9.500%, 10/6/2028 |
2,151,387
|
|
|
|
TOTAL
|
15,349,518
|
Semi-Annual
Financial Statements and Additional Information
7
|
Principal
Amount
or
Shares |
|
|
Value
in
U.S.
Dollars |
|
|
|
CORPORATE
BONDS—continued |
|
|
|
|
Finance—0.3%
|
|
|
$ 3,110,000
|
3,4
|
Credito
Real Sab de CV, Sr. Unsecd. Note, REGS, 7.250%, 12/31/2099 |
$ 349,875
|
|
60,000
|
3,4
|
Credito
Real Sab de CV, Sr. Unsecd. Note, REGS, 9.500%, 2/7/2026 |
7,128
|
|
300,000
|
|
Inversiones
Atlantida S.A., Sec. Fac. Bond, 144A, 7.500%, 5/19/2026 |
288,612
|
|
1,500,000
|
1
|
NBK
Tier 1 Ltd., Jr. Sub. Note, REGS, 3.625%, 8/24/2026 |
1,446,984
|
|
500,000
|
3,4,5
|
Unifin
Financiera, S.A.B. de C.V., Sr. Unsecd. Note, 144A, 9.875%, 1/28/2029 |
15,650
|
|
|
|
TOTAL
|
2,108,249
|
|
|
|
Food
Products—0.5% |
|
|
1,500,000
|
|
Brf
S.A., Sr. Secd. Note, REGS, 4.875%, 1/24/2030 |
1,423,143
|
|
2,150,000
|
|
Minerva
Luxembourg S.A., Sr. Unsecd. Note, 144A, 8.875%, 9/13/2033 |
2,294,841
|
|
|
|
TOTAL
|
3,717,984
|
|
|
|
Food
Services—0.4% |
|
|
1,000,000
|
|
Alsea
de Mexico SAB de CV, Sr. Unsecd. Note, REGS, 7.750%, 12/14/2026 |
1,006,608
|
|
2,000,000
|
|
MARB
BondCo PLC, Sr. Unsecd. Note, REGS, 3.950%, 1/29/2031 |
1,731,084
|
|
|
|
TOTAL
|
2,737,692
|
|
|
|
Industrial
Products & Equipment—0.1% |
|
|
750,000
|
|
Embraer
Netherlands Finance B.V., Sr. Unsecd. Note, REGS, 7.000%, 7/28/2030 |
799,241
|
|
|
|
Leisure
& Entertainment—0.1% |
|
|
800,000
|
|
Melco
Resorts Finance Ltd., Sr. Unsecd. Note, REGS, 5.375%, 12/4/2029 |
725,500
|
|
|
|
Metals
& Mining—3.5% |
|
|
1,000,000
|
|
Antofagasta
PLC, 144A, 6.250%, 5/2/2034 |
1,015,746
|
|
500,000
|
|
Cia
de Minas Buenaventura S.A., Sr. Unsecd. Note, 144A, 6.800%, 2/4/2032 |
497,505
|
|
1,300,000
|
|
CSN
Islands XI Corp., Sr. Unsecd. Note, REGS, 6.750%, 1/28/2028 |
1,213,933
|
|
1,000,000
|
|
CSN
Resources S.A., Sr. Unsecd. Note, 144A, 8.875%, 12/5/2030 |
958,147
|
|
750,000
|
|
CSN
Resources S.A., Sr. Unsecd. Note, REGS, 4.625%, 6/10/2031 |
568,742
|
|
200,000
|
|
Endeavour
Mining PLC, Sr. Unsecd. Note, 144A, 5.000%, 10/14/2026 |
196,450
|
|
2,350,000
|
|
First
Quantum Minerals Ltd., Sr. Unsecd. Note, 144A, 8.000%, 3/1/2033 |
2,327,978
|
|
3,062,000
|
|
First
Quantum Minerals Ltd., Sr. Unsecd. Note, REGS, 6.875%, 10/15/2027 |
3,027,492
|
|
2,000,000
|
|
First
Quantum Minerals Ltd., Sr. Unsecd. Note, REGS, 8.625%, 6/1/2031 |
2,029,608
|
|
200,000
|
|
Ivanhoe
Mines Ltd., Sr. Unsecd. Note, 144A, 7.875%, 1/23/2030 |
195,364
|
|
1,550,000
|
|
JSW
Steel Ltd., Sr. Unsecd. Note, REGS, 5.050%, 4/5/2032 |
1,378,160
|
|
2,500,000
|
|
Navoi
Mining and Metallurgical Co., Sr. Unsecd. Note, 144A, 6.700%, 10/17/2028 |
2,552,039
|
|
2,699,082
|
|
Samarco
Mineracao S.A., Sr. Unsecd. Note, 144A, 9.500%, 6/30/2031 |
2,541,993
|
|
1,000,000
|
|
Stillwater
Mining Co., Sr. Unsecd. Note, REGS, 4.000%, 11/16/2026 |
958,529
|
|
2,000,000
|
|
Stillwater
Mining Co., Sr. Unsecd. Note, REGS, 4.500%, 11/16/2029 |
1,687,041
|
|
700,000
|
|
Vale
Overseas Ltd., 6.125%, 6/12/2033 |
722,408
|
|
500,000
|
|
Vale
Overseas Ltd., Sr. Unsecd. Note, 3.750%, 7/8/2030 |
466,684
|
|
300,000
|
|
Vedanta
Resources II PLC, Sr. Unsecd. Note, 144A, 9.475%, 7/24/2030 |
275,853
|
|
1,700,000
|
|
Vedanta
Resources II PLC, Sr. Unsecd. Note, 144A, 9.850%, 4/24/2033 |
1,543,016
|
|
|
|
TOTAL
|
24,156,688
|
|
|
|
Oil
& Gas—3.9% |
|
|
922,643
|
|
Acu
Petroleo Luxembourg S.a.r.l., Sec. Fac. Bond, 144A, 7.500%, 1/13/2032 |
926,537
|
|
2,020,869
|
|
AI
Candelaria Spain SLU, Sec. Fac. Bond, REGS, 7.500%, 12/15/2028 |
1,994,318
|
|
1,853,658
|
|
Borr
IHC Ltd. / Borr Finance LLC, Sec. Fac. Bond, REGS, 10.000%, 11/15/2028 |
1,595,425
|
|
450,000
|
|
Canacol
Energy Ltd., Sr. Unsecd. Note, REGS, 5.750%, 11/24/2028 |
209,282
|
|
500,000
|
|
Energean
Israel Finance Ltd., Sec. Fac. Bond, 5.875%, 3/30/2031 |
453,570
|
|
200,000
|
|
Energean
Israel Finance Ltd., Sec. Fac. Bond, 8.500%, 9/30/2033 |
201,015
|
|
2,099,000
|
|
Gran
Tierra Energy, Inc., 1st Priority Sr. Secd. Note, 144A, 9.500%, 10/15/2029 |
1,634,341
|
|
500,000
|
|
Greensaif
Pipelines Bidc, Sec. Fac. Bond, 144A, 5.852%, 2/23/2036 |
503,903
|
|
1,597,300
|
|
Guara
Norte S.a.r.l., Sr. Note, 144A, 5.198%, 6/15/2034 |
1,481,083
|
|
800,000
|
|
Heritage
Petrol Co. Ltd., REGS, 9.000%, 8/12/2029 |
810,944
|
Semi-Annual
Financial Statements and Additional Information
8
|
Principal
Amount
or
Shares |
|
|
Value
in
U.S.
Dollars |
|
|
|
CORPORATE
BONDS—continued |
|
|
|
|
Oil
& Gas—continued |
|
|
$ 1,350,000
|
|
Hunt
Oil Co. of Peru, Sr. Secd. Note, 7.750%, 11/5/2038 |
$ 1,393,295
|
|
900,000
|
|
Hunt
Oil Co. of Peru, Sr. Unsecd. Note, 144A, 8.550%, 9/18/2033 |
1,007,142
|
|
800,000
|
|
Kosmos
Energy Ltd., Sr. Unsecd. Note, 144A, 7.750%, 5/1/2027 |
723,613
|
|
1,000,000
|
|
Kosmos
Energy Ltd., Sr. Unsecd. Note, 144A, 8.750%, 10/1/2031 |
808,490
|
|
1,380,969
|
|
MC
Brazil Downstream Trading S.a.r.l., Sec. Fac. Bond, 144A, 7.250%, 6/30/2031 |
1,068,456
|
|
898,000
|
|
Medco
Laurel Tree Pte. Ltd., Sr. Unsecd. Note, 144A, 6.950%, 11/12/2028 |
880,305
|
|
750,000
|
|
Medco
Maple Tree Pte Ltd., Sr. Unsecd. Note, 144A, 8.960%, 4/27/2029 |
771,562
|
|
902,520
|
|
MV24
Capital B.V., Term Loan - 1st Lien, REGS, 6.748%, 6/1/2034 |
860,969
|
|
400,000
|
|
Newco
Holding Usd S.a.r.l., Term Loan - 1st Lien, REGS, 9.375%, 11/7/2029 |
395,400
|
|
1,214,000
|
|
Orazul
Energy Egenor SCA, Sr. Unsecd. Note, REGS, 5.625%, 4/28/2027 |
1,190,770
|
|
500,000
|
|
Pampa
Energia S.A., Sr. Unsecd. Note, REGS, 9.125%, 4/15/2029 |
510,612
|
|
1,750,140
|
|
Peru
LNG S.R.L., Sr. Unsecd. Note, REGS, 5.375%, 3/22/2030 |
1,584,447
|
|
1,400,000
|
|
Puma
International Financing S.A., Sr. Unsecd. Note, 144A, 7.750%, 4/25/2029 |
1,391,215
|
|
650,000
|
|
Sierracol
Energy Andina, LLC, Sr. Unsecd. Note, REGS, 6.000%, 6/15/2028 |
598,524
|
|
356,000
|
|
Vista
Oil & Gas Argentina, Sr. Unsecd. Note, 144A, 7.625%, 12/10/2035 |
340,603
|
|
700,000
|
|
Vivo
Energy Investments B.V., Sr. Unsecd. Note, 144A, 5.125%, 9/24/2027 |
682,378
|
|
2,676,186
|
|
Yinson
Boronia Production, Sec. Fac. Bond, 144A, 8.947%, 7/31/2042 |
2,749,781
|
|
|
|
TOTAL
|
26,767,980
|
|
|
|
Paper
Products—0.4% |
|
|
1,500,000
|
|
Klabin
Austria Gmbh, Sr. Unsecd. Note, REGS, 3.200%, 1/12/2031 |
1,306,281
|
|
1,500,000
|
|
Klabin
Austria Gmbh, Sr. Unsecd. Note, REGS, 7.000%, 4/3/2049 |
1,477,289
|
|
|
|
TOTAL
|
2,783,570
|
|
|
|
Pharmaceuticals—0.1%
|
|
|
200,000
|
|
Teva
Pharmaceutical Finance Co. LLC, Sr. Unsecd. Note, 6.150%, 2/1/2036 |
195,767
|
|
200,000
|
|
Teva
Pharmaceutical Finance Netherlands III B.V., Sr. Unsecd. Note, 8.125%, 9/15/2031 |
220,447
|
|
|
|
TOTAL
|
416,214
|
|
|
|
Rail
Industry—0.0% |
|
|
133,322
|
|
Panama
Canal Railway Co., Sec. Fac. Bond, 144A, 7.000%, 11/1/2026 |
137,298
|
|
|
|
Real
Estate—0.0% |
|
|
1,000,000
|
3,4
|
Country
Garden Services Holdings Co. Ltd., 3.300%, 1/12/2031 |
85,000
|
|
2,100,000
|
3,4
|
Shimao
Group Holdings Ltd., Sr. Unsecd. Note, 4.750%, 12/31/2099 |
118,125
|
|
|
|
TOTAL
|
203,125
|
|
|
|
Retailers—0.1%
|
|
|
800,000
|
3,4
|
Future
Retail Ltd., Sec. Fac. Bond, 144A, 5.600%, 12/31/2099 |
2,008
|
|
850,000
|
|
InRetail
Consumer, Sec. Fac. Bond, 144A, 3.250%, 3/22/2028 |
795,472
|
|
1,200,000
|
3,4
|
Sri
Rejeki Isman Tbk PT, Sr. Unsecd. Note, REGS, 7.250%, 12/31/2099 |
54,000
|
|
|
|
TOTAL
|
851,480
|
|
|
|
Technology
Services—0.4% |
|
|
1,500,000
|
|
Alibaba
Group Holding Ltd., Sr. Unsecd. Note, 4.200%, 12/6/2047 |
1,178,387
|
|
1,700,000
|
|
Baidu,
Inc., Sr. Unsecd. Note, 3.425%, 4/7/2030 |
1,619,374
|
|
|
|
TOTAL
|
2,797,761
|
|
|
|
Telecommunications
& Cellular—2.5% |
|
|
750,000
|
|
Bharti
Airtel Ltd., Sr. Unsecd. Note, 144A, 3.250%, 6/3/2031 |
685,354
|
|
1,500,000
|
|
Colombia
Telecomunicaciones S.A. ESP, Sr. Unsecd. Note, REGS, 4.950%, 7/17/2030 |
1,323,880
|
|
2,050,000
|
|
CT
Trust, Sec. Fac. Bond, REGS, 5.125%, 2/3/2032 |
1,867,701
|
|
1,119,449
|
|
Digicel
Intermediate Holdings Ltd., 12.000%, 5/25/2027 |
1,122,902
|
|
1,100,000
|
|
IHS
Holding Ltd., Sr. Unsecd. Note, 144A, 8.250%, 11/29/2031 |
1,061,995
|
|
1,600,000
|
|
IHS
Holding Ltd., Sr. Unsecd. Note, REGS, 5.625%, 11/29/2026 |
1,564,833
|
|
824,970
|
|
IHS
Netherlands Holdco B.V., Sr. Unsecd. Note, 144A, 8.000%, 9/18/2027 |
826,916
|
|
1,000,000
|
|
Liberty
Costa Rica Senior Secured Finance, Sec. Fac. Bond, REGS, 10.875%, 1/15/2031 |
1,062,605
|
Semi-Annual
Financial Statements and Additional Information
9
|
Principal
Amount
or
Shares |
|
|
Value
in
U.S.
Dollars |
|
|
|
CORPORATE
BONDS—continued |
|
|
|
|
Telecommunications
& Cellular—continued |
|
|
$ 1,000,000
|
|
Millicom
International Cellular S.A., Sr. Unsecd. Note, REGS, 4.500%, 4/27/2031 |
$ 891,385
|
|
1,300,000
|
|
Telecommunications
Services of Trinidad & Tobago Ltd., Sec. Fac. Bond, REGS, 8.875%, 10/18/2029 |
1,291,446
|
|
1,052,000
|
|
Telfon
Celuar Del Paraguay, Sr. Unsecd. Note, REGS, 5.875%, 4/15/2027 |
1,045,588
|
|
200,000
|
|
Total
Play Telecom, Sec. Fac. Bond, 144A, 10.500%, 12/31/2028 |
178,964
|
|
3,000,000
|
|
Turkcell
Iletisim Hizmetleri A.S., Sr. Unsecd. Note, 144A, 7.450%, 1/24/2030 |
3,016,165
|
|
1,000,000
|
|
Turkcell
Iletisim Hizmetleri A.S., Sr. Unsecd. Note, 144A, 7.650%, 1/24/2032 |
1,001,482
|
|
|
|
TOTAL
|
16,941,216
|
|
|
|
Transportation—0.2%
|
|
|
300,000
|
|
Adani
Ports and Special Economic Zone Ltd., Sr. Unsecd. Note, REGS, 3.828%, 2/2/2032 |
245,808
|
|
500,000
|
|
Mersin
Uluslararasi Liman Isletmeciligi A.s., Sr. Unsecd. Note, 144A, 8.250%, 11/15/2028 |
514,641
|
|
1,100,000
|
|
Simpar
Europe S.A., Sr. Unsecd. Note, 144A, 5.200%, 1/26/2031 |
853,875
|
|
|
|
TOTAL
|
1,614,324
|
|
|
|
Utilities—2.1%
|
|
|
500,000
|
|
AES
Andes S.A., Sr. Unsecd. Note, 144A, 8.150%, 6/10/2055 |
510,500
|
|
500,000
|
|
Azule
Energy Finance PLC, Sr. Unsecd. Note, 144A, 8.125%, 1/23/2030 |
482,100
|
|
1,000,000
|
|
Buffalo
Energy Mexico Holdings, Term Loan - 1st Lien, REGS, 7.875%, 2/15/2039 |
1,014,460
|
|
961,250
|
|
Empresa
Electrica Cochrane SpA, 144A, 5.500%, 5/14/2027 |
949,845
|
|
1,200,000
|
|
Energuate
Trust, Sr. Unsecd. Note, REGS, 5.875%, 5/3/2027 |
1,182,120
|
|
800,000
|
|
Enfragen
Energia Sur S.A., REGS, 5.375%, 12/30/2030 |
688,308
|
|
300,000
|
|
Fs
Luxembourg S.a.r.l., Sr. Unsecd. Note, 144A, 8.875%, 2/12/2031 |
301,820
|
|
1,400,000
|
|
Globeleq
Mesoamerica, Sr. Note, 144A, 6.250%, 4/26/2029 |
1,336,740
|
|
1,760,000
|
|
Greenko
Dutch B.V., REGS, 3.850%, 3/29/2026 |
1,706,738
|
|
417,500
|
|
Greenko
Power II Ltd., Sr. Unsecd. Note, 144A, 4.300%, 12/13/2028 |
383,855
|
|
507,556
|
|
Light
Energia S.A., Sr. Unsecd. Note, 4.375%, 6/18/2026 |
470,758
|
|
651,459
|
2,4,5
|
Light
S.A., Unsecd. Note, 0.000%, 8/31/2027 |
179,151
|
|
225,161
|
|
LIGHT
SERV ELETRICIDADE, Term Loan - 1st Lien, 4.210%, 12/19/2032 |
113,037
|
|
181,800
|
|
LLPL
Capital Pte. Ltd., 144A, 6.875%, 2/4/2039 |
179,157
|
|
1,450,000
|
|
Minejesa
Capital B.V., Sec. Fac. Bond, 144A, 5.625%, 8/10/2037 |
1,351,161
|
|
1,334,290
|
|
Mong
Duong Finance Holdings B.V., 144A, 5.125%, 5/7/2029 |
1,282,705
|
|
500,000
|
|
OMGRID
Funding Ltd., Sr. Unsecd. Note, REGS, 5.196%, 5/16/2027 |
497,926
|
|
1,250,000
|
|
Termocandelaria
Power S.A., Sr. Unsecd. Note, 144A, 7.750%, 9/17/2031 |
1,245,056
|
|
200,000
|
|
Zorlu
Enerji Elektrik Uretim AS, Sr. Unsecd. Note, 144A, 11.000%, 4/23/2030 |
183,594
|
|
|
|
TOTAL
|
14,059,031
|
|
|
|
TOTAL
CORPORATE BONDS
(IDENTIFIED
COST $148,731,270) |
141,873,216
|
|
|
|
COMMON
STOCKS—0.0% |
|
|
|
|
Airlines—0.0%
|
|
|
58,450
|
4
|
Azul
S.A., ADR |
44,609
|
|
|
|
Consumer
Products—0.0% |
|
|
191,350
|
4,5
|
ATENTO
LUXCO 1 S.A. |
0
|
|
|
|
Finance—0.0%
|
|
|
67,865
|
4,5
|
Unifin
Financiera, S.A.B. de C.V. |
7,898
|
|
|
|
Telecommunications
& Cellular—0.0% |
|
|
11,153
|
4,5
|
Digicel
Holdings Bermuda Ltd. |
22,306
|
|
|
|
TOTAL
COMMON STOCKS
(IDENTIFIED
COST $358,524) |
74,813
|
|
|
|
EXCHANGE-TRADED
FUND—0.1% |
|
|
8,777
|
|
iShares
MSCI Emerging Markets ETF
(IDENTIFIED
COST $330,761) |
384,081
|
Semi-Annual
Financial Statements and Additional Information
10
|
Principal
Amount
or
Shares |
|
|
Value
in
U.S.
Dollars |
|
|
|
INVESTMENT
COMPANY—2.4% |
|
|
16,905,142
|
|
Federated
Hermes Government Obligations Fund, Premier Shares, 4.25%6
(IDENTIFIED
COST $16,905,142) |
$ 16,905,142
|
|
|
|
TOTAL
INVESTMENT IN SECURITIES—98.7%
(IDENTIFIED
COST $649,249,588)7
|
680,373,657
|
|
|
|
OTHER
ASSETS AND LIABILITIES - NET—1.3%8
|
8,755,871
|
|
|
|
NET
ASSETS—100% |
$689,129,528
|
At April 30, 2025, the Fund had the following
outstanding futures contracts:
|
Description
|
Number
of
Contracts
|
Notional
Value
|
Expiration
Date
|
Value
and
Unrealized
Appreciation
|
|
Long
Futures: |
|
|
|
|
|
United
States Treasury Notes 5-Year Long Futures |
205
|
$22,385,039
|
June
2025 |
$446,386
|
|
United
States Treasury Notes 10-Year Long Futures |
63
|
$7,069,781
|
June
2025 |
$154,897
|
|
NET
UNREALIZED APPRECIATION ON FUTURES CONTRACTS |
$601,283
| |||
At April 30, 2025, the Fund had the following
outstanding foreign exchange contracts:
|
Settlement
Date
|
Counterparty
|
Foreign
Currency
Units
to
Deliver/Receive
|
In
Exchange
For
|
Net Unrealized
Appreciation/
(Depreciation)
| |
|
Contracts
Purchased: |
|
|
|
|
|
|
5/5/2025
|
Toronto
Dominion Bank |
15,000,000
|
MXN
|
$729,732
|
$35,165
|
|
5/6/2025
|
Credit
Agricole |
450,000
|
GBP
|
$577,600
|
$22,113
|
|
5/6/2025
|
Bank
Of America, N.A. |
450,000
|
GBP
|
$583,756
|
$15,957
|
|
5/7/2025
|
Bank
Of America, N.A. |
500,000
|
AUD
|
$301,320
|
$18,968
|
|
5/7/2025
|
Citibank
N.A. |
500,000
|
AUD
|
264,467
CHF |
$2,313
|
|
5/7/2025
|
State
Street Bank & Trust Co. |
517,684
|
AUD
|
250,000
GBP |
$2,394
|
|
5/7/2025
|
Credit
Agricole |
2,000,000
|
BRL
|
$332,572
|
$19,673
|
|
5/7/2025
|
Bank
Of America, N.A. |
325,000,000
|
CLP
|
$325,260
|
$17,958
|
|
5/7/2025
|
BNP
Paribas SA |
550,000
|
EUR
|
$625,811
|
$(2,668)
|
|
5/7/2025
|
Citibank
N.A. |
550,000
|
EUR
|
$625,439
|
$(2,295)
|
|
5/7/2025
|
Bank
of New York |
111,000,000
|
JPY
|
$742,940
|
$33,828
|
|
5/7/2025
|
Morgan
Stanley |
111,000,000
|
JPY
|
$755,160
|
$21,607
|
|
5/7/2025
|
BNP
Paribas SA |
96,000,000
|
JPY
|
$649,742
|
$22,057
|
|
5/7/2025
|
BNP
Paribas SA |
13,000,000
|
MXN
|
$634,976
|
$27,747
|
|
5/7/2025
|
JPMorgan
Chase Bank, N.A. |
1,200,000
|
PEN
|
$320,658
|
$6,679
|
|
6/18/2025
|
Bank
Of America, N.A. |
6,870,000,000
|
COP
|
$1,567,502
|
$48,094
|
|
Contracts
Sold: |
|
|
|
|
|
|
5/5/2025
|
Toronto
Dominion Bank |
15,000,000
|
MXN
|
$750,432
|
$(14,465)
|
|
5/6/2025
|
JPMorgan
Chase Bank, N.A. |
450,000
|
GBP
|
$578,225
|
$(21,488)
|
|
5/6/2025
|
Bank
of New York |
450,000
|
GBP
|
$581,950
|
$(17,764)
|
|
5/7/2025
|
State
Street Bank & Trust Co. |
250,000
|
AUD
|
$153,655
|
$(6,488)
|
|
5/7/2025
|
Credit
Agricole |
250,000
|
AUD
|
$155,220
|
$(4,924)
|
|
5/7/2025
|
Credit
Agricole |
2,000,000
|
BRL
|
$337,809
|
$(14,435)
|
|
5/7/2025
|
Citibank
N.A. |
264,467
|
CHF
|
500,000
AUD |
$(2,532)
|
|
5/7/2025
|
Bank
Of America, N.A. |
325,000,000
|
CLP
|
$329,164
|
$(14,055)
|
|
5/7/2025
|
State
Street Bank & Trust Co. |
250,000
|
GBP
|
517,684
AUD |
$(3,952)
|
|
5/7/2025
|
Bank
Of America, N.A. |
2,533,322
|
JPY
|
$17,544
|
$(184)
|
|
5/7/2025
|
Bank
of New York |
108,466,678
|
JPY
|
$748,960
|
$(10,079)
|
|
5/7/2025
|
Morgan
Stanley |
111,000,000
|
JPY
|
$769,892
|
$(6,875)
|
|
5/7/2025
|
BNP
Paribas SA |
96,000,000
|
JPY
|
$661,297
|
$(10,501)
|
|
5/7/2025
|
Bank
Of America, N.A. |
13,000,000
|
MXN
|
$635,244
|
$(27,480)
|
Semi-Annual
Financial Statements and Additional Information
11
|
Settlement
Date
|
Counterparty
|
Foreign
Currency
Units
to
Deliver/Receive
|
In
Exchange
For
|
Net Unrealized
Appreciation/
(Depreciation)
| |
|
5/7/2025
|
JPMorgan
Chase Bank, N.A. |
1,200,000
|
PEN
|
$320,598
|
$(6,739)
|
|
6/18/2025
|
State
Street Bank & Trust Co. |
6,870,000,000
|
COP
|
$1,654,640
|
$39,044
|
|
6/18/2025
|
Barclays
Bank PLC |
4,950,000
|
EUR
|
$5,417,123
|
$(205,634)
|
|
6/18/2025
|
State
Street Bank & Trust Co. |
796,912
|
EUR
|
$864,738
|
$(40,483)
|
|
NET
UNREALIZED DEPRECIATION ON FOREIGN EXCHANGE CONTRACTS |
$(79,444)
| ||||
At April 30, 2025, the Fund had the following
open swap contracts:
|
Credit
Default Swap | |||||||||
|
Counterparty
|
Reference
Entity
|
Buy/
Sell
|
Pay/
Receive
Fixed
Rate |
Expiration
Date
|
Implied
Credit
Spread
at
04/30/20259
|
Notional
Amount
|
Market
Value
|
Upfront
Premiums
Paid/
(Received)
|
Unrealized
Appreciation
(Depreciation)
|
|
OTC
Swap: |
|
|
|
|
|
|
|
|
|
|
Morgan
Stanley |
CDX
Index EM Series 43 |
Sell
|
1.000%
|
06/20/2030
|
3.12%
|
$9,000,000
|
$(823,567)
|
$(800,713)
|
$(22,854)
|
At April 30, 2025, the Fund had the following
outstanding written options contracts:
|
Counterparty
|
Description
|
Number
of
Contracts
|
Notional
Amount
|
Expiration
Date
|
Exercise
Price
|
Value
|
|
Call
Option: |
|
|
|
|
|
|
|
Morgan
Stanley |
EUR
CALL/USD PUT |
(1,100,000)
|
$1,100,000
|
December
2025 |
$1.19
|
$(15,704)
|
|
(Premium
Received $19,943) |
$(15,704)
| |||||
Net Unrealized Appreciation (Depreciation)
on Futures, Foreign Exchange Contracts and the value of Swap Contracts and Written Options
Contracts are included in “Other Assets and Liabilities—Net.”
Transactions with affiliated investment
companies, which are funds managed by the Adviser or an affiliate of the Adviser, during the period
ended April 30, 2025, were as follows:
|
|
Federated
Hermes
Government
Obligations
Fund,
Premier
Shares |
|
Value
as of 10/31/2024 |
$34,279,318
|
|
Purchases
at Cost |
$202,195,952
|
|
Proceeds
from Sales |
$(219,570,128)
|
|
Change
in Unrealized Appreciation/Depreciation |
$—
|
|
Net
Realized Gain/(Loss) |
$—
|
|
Value
as of 4/30/2025 |
$16,905,142
|
|
Shares
Held as of 4/30/2025 |
16,905,142
|
|
Dividend
Income |
$414,929
|
|
1
|
Perpetual
Bond Security. The maturity date reflects the next call date. |
|
2
|
Zero
coupon bond, reflects effective rate at time of purchase. |
|
3
|
Issuer
in default. |
|
4
|
Non-income-producing
security. |
|
5
|
Market
quotations and price evaluations are not available. Fair value determined using significant unobservable inputs in accordance with procedures
established
by
and under the general supervision of the Fund’s Adviser acting through its Valuation Committee (“Valuation Committee”).
|
|
6
|
7-day
net yield. |
|
7
|
The
cost of investments for federal tax purposes amounts to $633,614,190. |
|
8
|
Assets,
other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
|
9
|
Implied
credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements serve as an
indicator of the
current
status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread
of a particular
referenced
entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement.
Wider credit
spreads
represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit
event occurring as defined
under
the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced
entity or obligation. |
Note: The categories of investments are
shown as a percentage of net assets at April 30, 2025.
Semi-Annual
Financial Statements and Additional Information
12
Various inputs are used
in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed
below:
Level 1—quoted prices in active markets
for identical securities.
Level 2—other significant observable
inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk,
etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs
(including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing
securities are not an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used, as of April 30, 2025, in valuing the Fund’s assets carried at fair value:
|
Valuation
Inputs | ||||
|
|
Level
1—
Quoted
Prices
|
Level
2—
Other
Significant
Observable
Inputs
|
Level
3—
Significant
Unobservable
Inputs
|
Total
|
|
Debt
Securities: |
|
|
|
|
|
Foreign
Governments/Agencies |
$—
|
$521,136,405
|
$—
|
$521,136,405
|
|
Corporate
Bonds |
—
|
141,473,415
|
399,801
|
141,873,216
|
|
Exchange-Traded
Fund |
384,081
|
—
|
—
|
384,081
|
|
Equity
Securities: |
|
|
|
|
|
Common
Stocks |
|
|
|
|
|
International
|
44,609
|
—
|
30,204
|
74,813
|
|
Investment
Company |
16,905,142
|
—
|
—
|
16,905,142
|
|
TOTAL
SECURITIES |
$17,333,832
|
$662,609,820
|
$430,005
|
$680,373,657
|
|
Other
Financial Instruments: |
|
|
|
|
|
Assets
|
|
|
|
|
|
Futures
Contracts |
$601,283
|
$—
|
$—
|
$601,283
|
|
Foreign
Exchange Contracts |
—
|
333,597
|
—
|
333,597
|
|
Liabilities
|
|
|
|
|
|
Foreign
Exchange Contracts |
—
|
(413,041)
|
—
|
(413,041)
|
|
Swap
Contracts |
—
|
(823,567)
|
—
|
(823,567)
|
|
Written
Options Contracts |
—
|
(15,704)
|
—
|
(15,704)
|
|
TOTAL
OTHER FINANCIAL INSTRUMENTS |
$601,283
|
$(918,715)
|
$—
|
$(317,432)
|
|
The
following acronym(s) are used throughout this portfolio: |
| |
|
ADR
|
—American
Depositary Receipt | |
|
AUD
|
—Australian
Dollar | |
|
BRL
|
—Brazilian
Real | |
|
CHF
|
—Swiss
Franc | |
|
CJSC
|
—Closed
Joint Stock Company | |
|
CLP
|
—Chilean
Peso | |
|
COP
|
—Colombian
Peso | |
|
EGP
|
—Egyptian
Pound | |
|
EMTN
|
—Euro
Medium Term Note | |
|
ETF
|
—Exchange-Traded
Fund | |
|
EUR
|
—Euro
| |
|
GBP
|
—British
Pound | |
|
GMTN
|
—Global
Medium Term Note | |
|
JPY
|
—Japanese
Yen | |
|
JSC
|
—Joint
Stock Company | |
|
LLP
|
—Limited
Liability Partnership | |
|
MXN
|
—Mexican
Peso | |
|
PEN
|
—Peruvian
Nuevo Sol | |
|
USD
|
—United
States Dollar | |
See Notes which are an integral part of
the Financial Statements
Semi-Annual
Financial Statements and Additional Information
13
Financial
Highlights
(For a Share Outstanding Throughout Each
Period)
|
|
Six
Months
Ended
(unaudited)
4/30/2025
|
Year Ended October 31,
| ||||
|
|
2024
|
2023
|
2022
|
2021
|
2020
| |
|
Net Asset
Value, Beginning of Period |
$8.77
|
$7.58
|
$7.37
|
$9.93
|
$9.78
|
$9.97
|
|
Income
From Investment Operations: |
|
|
|
|
|
|
|
Net
investment income (loss)1
|
0.39
|
0.76
|
0.67
|
0.61
|
0.62
|
0.58
|
|
Net
realized and unrealized gain (loss) |
(0.21)
|
1.08
|
0.14
|
(2.60)
|
0.15
|
(0.25)
|
|
TOTAL
FROM INVESTMENT OPERATIONS |
0.18
|
1.84
|
0.81
|
(1.99)
|
0.77
|
0.33
|
|
Less Distributions:
|
|
|
|
|
|
|
|
Distributions
from net investment income |
(0.39)
|
(0.65)
|
(0.60)
|
(0.57)
|
(0.62)
|
(0.52)
|
|
Net
Asset Value, End of Period |
$8.56
|
$8.77
|
$7.58
|
$7.37
|
$9.93
|
$9.78
|
|
Total
Return2
|
2.06%
|
24.93%
|
10.93%
|
(20.63)%
|
7.82%
|
3.48%
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
Net
expenses3
|
0.06%4
|
0.05%
|
0.05%
|
0.06%
|
0.05%
|
0.05%
|
|
Net
investment income |
8.92%4
|
9.04%
|
8.51%
|
6.97%
|
6.07%
|
5.90%
|
|
Expense
waiver/reimbursement5
|
—%
|
—%
|
—%
|
—%
|
—%
|
—%
|
|
Supplemental
Data: |
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
$689,130
|
$873,961
|
$539,779
|
$716,217
|
$1,150,585
|
$861,056
|
|
Portfolio
turnover6
|
23%
|
62%
|
107%
|
64%
|
54%
|
104%
|
|
1
|
Per
share numbers have been calculated using the average shares method. |
|
2
|
Based
on net asset value. Total returns for periods of less than one year are not annualized. |
|
3
|
Amount
does not reflect net expenses incurred by investment companies in which the Fund may invest. |
|
4
|
Computed
on an annualized basis. |
|
5
|
This
expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense
waiver/
reimbursement
recorded by investment companies in which the Fund may invest. |
|
6
|
Securities
that mature are considered sales for purposes of this calculation. |
See Notes which are an integral part of
the Financial Statements
Semi-Annual
Financial Statements and Additional Information
14
Statement
of Assets and Liabilities
April 30, 2025 (unaudited)
|
Assets:
|
|
|
Investment
in securities, at value including $16,905,142 of investments in affiliated holdings* (identified
cost $649,249,588, including
$16,905,142
of identified cost in affiliated holdings) |
$680,373,657
|
|
Cash
|
2,437,844
|
|
Cash
denominated in foreign currencies (identified cost $178,619) |
185,133
|
|
Due
from broker (Note 2)
|
2,739,604
|
|
Income
receivable |
10,719,547
|
|
Income
receivable from affiliated holdings |
51,980
|
|
Receivable
for investments sold |
2,298,646
|
|
Unrealized
appreciation on foreign exchange contracts |
333,597
|
|
Receivable
for variation margin on futures contracts |
24,768
|
|
Receivable
for periodic payments from swap contracts |
10,500
|
|
Total
Assets |
699,175,276
|
|
Liabilities:
|
|
|
Payable
for investments purchased |
7,976,347
|
|
Written
options outstanding, at value (premium received $19,943) |
15,704
|
|
Unrealized
depreciation on foreign exchange contracts |
413,041
|
|
Swaps,
at value (premium received $800,713) |
823,567
|
|
Income
distribution payable |
565,206
|
|
Accrued
expenses (Note 5)
|
251,883
|
|
Total
Liabilities |
10,045,748
|
|
Net
assets for 80,473,039 shares outstanding |
$689,129,528
|
|
Net Assets
Consist of: |
|
|
Paid-in
capital |
$790,669,749
|
|
Total
distributable earnings (loss) |
(101,540,221)
|
|
Net
Assets |
$689,129,528
|
|
Net Asset
Value, Offering Price and Redemption Proceeds Per Share: |
|
|
$689,129,528
÷ 80,473,039 shares outstanding, no par value, unlimited shares authorized |
$8.56
|
|
*
|
See
information listed after the Fund’s Portfolio of Investments. |
See Notes which are an integral part of
the Financial Statements
Semi-Annual
Financial Statements and Additional Information
15
Statement
of Operations
Six Months Ended April
30, 2025 (unaudited)
|
Investment
Income: |
|
|
Interest
|
$33,728,933
|
|
Dividends
(including $414,929 received from affiliated holdings* and net of foreign taxes withheld of $49,519) |
392,752
|
|
TOTAL
INCOME |
34,121,685
|
|
Expenses:
|
|
|
Administrative
fee (Note 5)
|
3,514
|
|
Custodian
fees |
66,860
|
|
Transfer
agent fees |
26,438
|
|
Directors’/Trustees’
fees (Note 5)
|
2,752
|
|
Auditing
fees |
21,494
|
|
Legal
fees |
5,847
|
|
Portfolio
accounting fees |
80,236
|
|
Share
registration costs |
615
|
|
Printing
and postage |
10,302
|
|
Miscellaneous
(Note 5)
|
11,374
|
|
TOTAL
EXPENSES |
229,432
|
|
Net
investment income |
33,892,253
|
|
Realized
and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions, Foreign Exchange Contracts, Futures Contracts,
Written
Options and Swap Contracts: |
|
|
Net
realized gain on investments |
9,257,296
|
|
Net
realized loss on foreign currency transactions |
(675,273)
|
|
Net
realized loss on foreign exchange contracts |
(68,238)
|
|
Net
realized gain on futures contracts |
83,768
|
|
Net
realized loss on swap contracts |
(87,721)
|
|
Net
change in unrealized appreciation of investments |
(24,147,760)
|
|
Net
change in unrealized appreciation/depreciation of translation of assets and liabilities in foreign currency |
258,985
|
|
Net
change in unrealized appreciation of foreign exchange contracts |
(239,177)
|
|
Net
change in unrealized depreciation of futures contracts |
639,168
|
|
Net
change in unrealized appreciation of written options |
4,239
|
|
Net
change in unrealized appreciation of swap contracts |
(39,314)
|
|
Net
realized and unrealized gain (loss) on investments, foreign currency transactions, foreign exchange contracts, futures contracts, written
options
and swap contracts |
(15,014,027)
|
|
Change
in net assets resulting from operations |
$18,878,226
|
|
*
|
See
information listed after the Fund’s Portfolio of Investments. |
See Notes which are an integral part of
the Financial Statements
Semi-Annual
Financial Statements and Additional Information
16
Statement
of Changes in Net Assets
|
|
Six
Months
Ended
(unaudited)
4/30/2025
|
Year
Ended
10/31/2024
|
|
Increase
(Decrease) in Net Assets |
|
|
|
Operations:
|
|
|
|
Net
investment income |
$33,892,253
|
$82,473,582
|
|
Net
realized gain (loss) |
8,509,832
|
(410,619)
|
|
Net
change in unrealized appreciation/depreciation |
(23,523,859)
|
104,810,308
|
|
CHANGE
IN NET ASSETS RESULTING FROM OPERATIONS |
18,878,226
|
186,873,271
|
|
Distributions
to Shareholders |
(35,402,738)
|
(69,966,332)
|
|
Share Transactions:
|
|
|
|
Proceeds
from sale of shares |
77,921,000
|
461,053,785
|
|
Net
asset value of shares issued to shareholders in payment of distributions declared |
30,382,431
|
60,907,477
|
|
Cost
of shares redeemed |
(276,610,505)
|
(304,686,040)
|
|
CHANGE
IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS |
(168,307,074)
|
217,275,222
|
|
Change
in net assets |
(184,831,586)
|
334,182,161
|
|
Net Assets:
|
|
|
|
Beginning
of period |
873,961,114
|
539,778,953
|
|
End
of period |
$689,129,528
|
$873,961,114
|
See Notes which are an integral part of
the Financial Statements
Semi-Annual
Financial Statements and Additional Information
17
Notes to
Financial Statements
April 30, 2025 (unaudited)
1. ORGANIZATION
Federated Hermes Core Trust (the “Trust”)
is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end
management investment company. The Trust consists of four portfolios. The financial statements included herein are only those
of Emerging Markets Core Fund (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are
presented separately. The assets of each portfolio are segregated
and a shareholder’s interest is limited to the portfolio in which shares are held. Each
portfolio pays its own expenses. Currently, shares of the Fund are being offered for investment only to investment companies, insurance
company separate accounts, common or commingled trust funds or similar organizations or parties that are “accredited investors”
within the meaning of Regulation D of the Securities Act of 1933, as amended (the “1933 Act”).
The primary investment
objective of the Fund is to achieve total return on its assets. Its secondary investment objective is to achieve a high
level of income.
2. SIGNIFICANT
ACCOUNTING POLICIES
The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of its financial statements.
These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
In
calculating its net asset value (NAV), the Fund generally values investments as follows:
■
Fixed-income
securities are fair valued using price evaluations provided by a pricing service approved by Federated Investment Management
Company (the “Adviser”).
■
Derivative
contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean
of closing bid and ask quotations.
■
Over-the-counter
(OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the
Adviser.
■
Shares
of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs, or NAV per share
practical expedient, as applicable.
■
For
securities that are fair valued in accordance with procedures established by and under the general supervision of the Adviser, certain
factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer
or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature
and duration of restrictions on disposition, the movement of the
market in which the security is normally traded, public trading in similar securities
or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited
to industry changes and relevant government actions.
If any price, quotation, price evaluation
or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain
price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth
in the Adviser’s valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion
of the Adviser’s valuation committee (“Valuation Committee”),
is deemed not representative of the fair value of such security, the Fund uses the
fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund
could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines
its NAV per share, and the actual value obtained could be materially different.
Fair Valuation and Significant Events Procedures
Pursuant
to Rule 2a-5 under the Act, the Fund’s Board of Trustees (the “Trustees”) has designated the Adviser as the Fund’s
valuation designee to perform any fair value determinations for
securities and other assets held by the Fund. The Adviser is subject to the Trustees’
oversight and certain reporting and other requirements intended to provide the Trustees the information needed to oversee the
Adviser’s fair value determinations.
The Adviser, acting through
its Valuation Committee, is responsible for determining the fair value of investments for which market quotations
are not readily available. The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser’s affiliated
companies and determines fair value and oversees the calculation of the NAV. The Valuation Committee is also authorized to use
pricing services to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The
Valuation Committee employs various methods for reviewing third-party
pricing-service evaluations including periodic reviews of third-party
pricing services’ policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional
back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on
recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee
determines the fair value of the investment in accordance with procedures adopted by the Adviser. The Trustees periodically review
the fair valuations made by the Valuation Committee. The Trustees have also approved the Adviser’s fair valuation and significant
events procedures as part of the Fund’s compliance program
and will review any changes made to the procedures.
Factors considered by
pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon,
maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers
and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an
investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price
between
Semi-Annual
Financial Statements and Additional Information
18
the prices bid and
ask for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities,
mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income
securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment,
the fair value of the investment is determined in accordance with procedures adopted by the Adviser.
The Adviser has also
adopted procedures requiring an investment to be priced at its fair value whenever the Valuation Committee determines
that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment
would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both
an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying
the resulting change in value. Examples of significant events
that may occur after the close of the principal market on which a security is traded,
or after the time of a price evaluation provided by a pricing service or a dealer, include:
■
With
respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities
index futures contracts;
■
Political
or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are
traded;
■
Announcements
concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer’s
operations or regulatory changes or market developments affecting the issuer’s industry.
The Adviser has adopted procedures whereby
the Valuation Committee uses a pricing service to provide factors to update the fair value of
equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the
pricing time of the Fund. For other significant events, the Fund
may seek to obtain more current quotations or price evaluations from alternative
pricing sources. If a reliable alternative pricing source is not available, the Valuation Committee will determine the fair value of the
investment in accordance with the fair valuation procedures approved by the Adviser. The Trustees periodically review fair valuations
made in response to significant events.
Repurchase Agreements
The
Fund may invest in repurchase agreements for short-term liquidity purposes. It is the policy of the Fund to require the other party to
a repurchase agreement to transfer to the Fund’s custodian
or sub-custodian eligible securities or cash with a market value (after transaction
costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred
to accounts with the custodian or sub-custodian in which the Fund holds a “securities entitlement” and exercises “control”
as those terms are defined in the Uniform Commercial Code. The
Fund has established procedures for monitoring the market value of the transferred
securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures
also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds
the repurchase price or in exchange for other eligible securities of equivalent market value.
The insolvency of the
other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause
the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund
in excess of the repurchase price and related transaction costs must be remitted to the other party.
The Fund may enter into
repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the
custodian or sub-custodian for investment companies and other clients advised by the Fund’s Adviser and its affiliates. The Fund
will participate on a pro rata basis with the other investment
companies and clients in its share of the securities transferred under such repurchase
agreements and in its share of proceeds from any repurchase or other disposition of such securities.
Investment Income, Gains and Losses, Expenses and Distributions
Investment
transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an
identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded
on the ex-dividend date. Foreign dividends are recorded on the
ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions
of net investment income, if any, are declared daily and paid monthly. In addition, distributions of capital gains, if any, are declared
and paid at least annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Amortization/accretion
of premium and discount is included in investment income.
Federal Taxes
It
is the Fund’s policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986 (the “Code”) and
to distribute to shareholders each year substantially all of its
income. Accordingly, no provision for federal income tax is necessary. As of and during the six
months ended April 30, 2025, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties,
if any, related to tax liabilities as income tax expense in the Statement of Operations. As of April 30, 2025, tax years 2021
through 2024 remain subject to examination by the Fund’s major tax jurisdictions, which include the United States of America and
the Commonwealth of Pennsylvania.
The Fund may be subject
to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income
or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized
gains as income and/or gains are earned.
When-Issued and Delayed-Delivery Transactions
The
Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains
security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased
on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses
may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the
contract.
Semi-Annual
Financial Statements and Additional Information
19
Swap Contracts
Swap
contracts involve two parties that agree to exchange the returns (or the differential in rates of return) earned or realized on particular
predetermined investments, instruments, indices or other measures. The gross returns to be exchanged or “swapped” between
parties are generally calculated with respect to a “notional amount” for a predetermined period of time. The Fund may enter
into interest rate, total return, credit default, currency and
other swap agreements. Risks may arise upon entering into swap agreements from
the potential inability of the counterparties to meet the terms of their contract from unanticipated changes in the value of the swap
agreement. In connection with these agreements, securities or
cash may be identified as collateral or margin in accordance with the terms
of the respective swap agreements to provide assets of value and recourse in the event of default.
The Fund uses credit
default swaps to manage country, duration, security and market risks. The “buyer” in a credit default swap is obligated
to pay the “seller” a periodic stream of payments over the term of the contract provided that no event of default on an underlying
reference obligation has occurred. If an event of default occurs, the seller must pay the buyer the full notional value, or the “par
value,” of the reference obligation in exchange for the reference obligation. In connection with these agreements, securities may
be identified as collateral in accordance with the terms of the
respective swap agreements to provide assets of value and recourse in the event
of default or bankruptcy/insolvency. Recovery values are assumed by market makers considering either industry standard recovery rates
or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is typically
determined by a facilitated auction whereby a minimum number of
allowable broker bids, together with a specific valuation method, are used
to calculate the settlement value. The maximum amount of the payment that may occur, as a result of a credit event payable by the protection
seller, is equal to the notional amount of the underlying index or security. The Fund’s maximum exposure to loss of the notional
value of credit default swaps outstanding at April 30, 2025, is $9,000,000. The Fund’s maximum risk of loss from counterparty credit
risk, either as the protection buyer or as the protection seller, is the fair value of the contract. This risk is mitigated by having
a master netting arrangement between the Fund and the counterparty
and by the posting of collateral by the counterparty to the Fund to cover
the Fund’s exposure to the counterparty.
Upfront payments received
or paid by the Fund will be reflected as an asset or liability on the Statement of Assets and Liabilities. Changes
in the value of swap contracts are included in “Swaps, at value” on the Statement of Assets and Liabilities, and periodic
payments are reported as “Net realized gain (loss) on swap
contracts” in the Statement of Operations.
Certain swap contracts
are subject to Master Netting Agreements (MNA) which are agreements between the Fund and its counterparties
that provide for the net settlement of all transactions and collateral with the Fund, through a single payment, in the event of
default or termination. Amounts presented on the Portfolio of Investments and Statement of Assets and Liabilities are not net settlement
amounts but gross.
Certain swap contracts
may be centrally cleared (“centrally cleared swaps”), whereby all payments made or received by the Fund pursuant
to the contract are with a central clearing party (CCP) rather than the counterparty. The CCP guarantees the performance of the
parties to the contract. Upon entering into centrally cleared swaps, the Fund is required to deposit with the CCP, either in cash or securities,
an amount of initial margin determined by the CCP, which is subject to adjustment. For centrally cleared swaps, the daily change
in valuation is recorded as a receivable or payable for variation margin and settled in cash with the CCP daily. In the case of centrally
cleared swaps, counterparty risk is minimal due to protections provided by the CCP.
Swap contracts outstanding, at period end,
including net unrealized depreciation, are listed after the Fund’s Portfolio of Investments.
The average notional
amount of credit default swap contracts held by the Fund throughout the period was $3,000,000. This is based on
amounts held as of each month-end throughout the six-month period.
Futures Contracts
The
Fund purchases and sells financial futures contracts to seek to increase return and to manage security risk. Upon entering into a financial
futures contract with a broker, the Fund is required to deposit with a broker, either U.S. government securities or a specified amount
of cash, which is shown as due from broker in the Statement of Assets and Liabilities. Futures contracts are valued daily and unrealized
gains or losses are recorded in a “variation margin” account. The Fund receives from or pays to the broker a specified amount
of cash based upon changes in the variation margin account. When
a contract is closed, the Fund recognizes a realized gain or loss. Futures
contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the
value of the underlying securities. There is minimal counterparty risk to the Fund since futures contracts are exchange-traded and the
exchange’s clearinghouse, as counterparty to all exchange-traded
futures contracts, guarantees the futures contracts against default.
Futures contracts outstanding at period
end are listed after the Fund’s Portfolio of Investments.
The average notional
value of long and short futures contracts held by the Fund throughout the period was $13,225,262 and $2,966,154,
respectively. This is based on amounts held as of each month-end throughout the six-month period.
Foreign Exchange Contracts
The
Fund enters into foreign exchange contracts to seek to increase return and to manage currency risk. Purchased contracts are used to acquire
exposure to foreign currencies, whereas, contracts to sell are used to hedge the Fund’s securities against currency fluctuations.
Risks may arise upon entering into these transactions from the
potential inability of counterparties to meet the terms of their commitments
and from unanticipated movements in security prices or foreign exchange rates. The foreign exchange contracts are adjusted
by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized
until the settlement date.
Foreign exchange contracts
are subject to MNA. Amounts presented on the Portfolio of Investments and Statement of Assets and Liabilities
are not net settlement amounts but gross. Foreign exchange contracts outstanding at period end, including net unrealized appreciation/depreciation
or net settlement amount, are listed after the Fund’s Portfolio of Investments.
Semi-Annual
Financial Statements and Additional Information
20
The
average value at settlement date payable and receivable of foreign exchange contracts purchased and sold by the Fund throughout
the period was $182,854 and $209,404, respectively. This is based on the contracts held as of each month-end throughout the
six-month period.
Foreign Currency Translation
The
accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated
into U.S. dollars based on the rates of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales
of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded.
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 market prices of securities held. Such fluctuations are included with the net realized
and unrealized gain or loss from investments.
Reported net realized
foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between
the trade and settlement dates on securities transactions, 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 in securities at
period end, resulting from changes in the exchange rate.
Restricted Securities
The
Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered
for public sale without first being registered, or being able
to take advantage of an exemption from registration, under the 1933 Act; or (b)
are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first
being registered, the issuer of the restricted security has agreed
to register such securities for resale, at the issuer’s expense, either upon demand
by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the
secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established
by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund’s restricted securities, like other
securities, are priced in accordance with procedures established
by and under the general supervision of the Adviser.
Option Contracts
The
Fund buys or sells put and call options to seek to increase return and to manage currency risk. The seller (“writer”) of an
option receives a payment or premium, from the buyer, which the
writer keeps regardless of whether the buyer exercises the option. When the Fund
writes a put or call option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to
reflect the current value of the option written. Premiums received from writing options which expire are treated as realized gains. The
Fund, as a writer of an option, bears the market risk of an unfavorable
change in the price of the underlying reference instrument. When the
Fund purchases a put or call option, an amount equal to the premium paid is recorded as an increase to the cost of the investment and
subsequently marked to market to reflect the current value of the option purchased. Premiums received/paid for writing/purchasing options
which expire are treated as realized losses. Premiums received/paid for writing/purchasing options which are exercised or closed are
added to the proceeds or offset against amounts paid on the underlying reference instrument to determine the realized gain or loss. The
risk associated with purchasing put and call options is limited to the premium paid. Options can trade on securities or commodities exchanges.
In this case, the exchange sets all the terms of the contract except for the price. Most exchanges require investors to maintain
margin accounts through their brokers to cover their potential obligations to the exchange. This protects investors against potential
defaults by the counterparty.
Option contracts are
subject to MNA. Amounts presented on the Portfolio of Investments and Statement of Assets and Liabilities are not
net settlement amounts but gross.
Written option contracts
outstanding at period end are listed after the Fund’s Portfolio of Investments. At April 30, 2025, the Fund had
no outstanding purchased options.
The average market value
of purchased put and call options held by the Fund throughout the period was $131 and $2,517, respectively.
This is based on amounts held as of each month-end throughout the six-month period.
The average market value
of written call options held by the Fund throughout the period was $2,243. This is based on amounts held as
of each month-end throughout the six-month period.
Semi-Annual
Financial Statements and Additional Information
21
Additional Disclosure Related
to Derivative Instruments
|
Fair
Value of Derivative Instruments | ||||
|
|
Assets
|
Liabilities
| ||
|
|
Statement
of
Assets
and
Liabilities
Location
|
Fair
Value
|
Statement
of
Assets
and
Liabilities
Location
|
Fair
Value
|
|
Derivatives
not accounted for as hedging
instruments
under ASC Topic 815 |
|
|
|
|
|
Interest
rate contracts |
Receivable
for variation
margin
on futures contracts |
$601,283*
|
|
$—
|
|
Foreign
exchange contracts |
Unrealized
appreciation on
foreign
exchange contracts |
333,597
|
Unrealized
depreciation on
foreign
exchange contracts |
413,041
|
|
Foreign
exchange contracts |
|
—
|
Written
options
outstanding,
at value |
15,704
|
|
Credit
contracts |
|
—
|
Swaps,
at value |
823,567
|
|
Total
derivatives not accounted for as hedging instruments under
ASC
Topic 815 |
|
$934,880
|
|
$1,252,312
|
|
*
|
Includes
cumulative net appreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day’s
variation margin is
reported
within the Statement of Assets and Liabilities. |
The Effect of Derivative Instruments on the Statement
of Operations for the Six Months Ended April 30, 2025
|
Amount
of Realized Gain or (Loss) on Derivatives Recognized in Income | |||||
|
|
Credit
Default
Swaps
|
Futures
Contracts
|
Foreign
Exchange
Contracts
|
Purchased
Options
Contracts1
|
Total
|
|
Interest
rate contracts |
$—
|
$83,768
|
$—
|
$—
|
$83,768
|
|
Foreign
exchange contracts |
—
|
—
|
(68,238)
|
(64,455)
|
(132,693)
|
|
Credit
contracts |
(87,721)
|
—
|
—
|
—
|
(87,721)
|
|
TOTAL
|
$(87,721)
|
$83,768
|
$(68,238)
|
$(64,455)
|
$(136,646)
|
|
1
|
The
net realized loss on Purchased Options Contracts is found within the Net realized gain on investments on the Statement of Operations.
|
|
Change
in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |||||
|
|
Credit
Default
Swaps
|
Futures
Contracts
|
Foreign
Exchange
Contracts
|
Written
Options
Contracts
|
Total
|
|
Interest
rate contracts |
$—
|
$639,168
|
$—
|
$—
|
$639,168
|
|
Foreign
exchange contracts |
—
|
—
|
(239,177)
|
4,239
|
(234,938)
|
|
Credit
contracts |
(39,314)
|
—
|
—
|
—
|
(39,314)
|
|
TOTAL
|
$(39,314)
|
$639,168
|
$(239,177)
|
$4,239
|
$364,916
|
Semi-Annual
Financial Statements and Additional Information
22
As indicated above,
certain derivative investments are transacted subject to MNA. These agreements permit the Fund to offset with a counterparty
certain derivative payables and/or receivables with collateral held and create one single net payment in the event of default or
termination of the agreement by either the Fund or the counterparty. Amounts presented on the Portfolio of Investments and Statement
of Assets and Liabilities are not net settlement amounts but gross. As of April 30, 2025, the impact of netting assets and liabilities
and the collateral pledged or received based on MNA are detailed below:
|
Gross
Amounts Not Offset In the Statement of Assets and Liabilities |
|
|
|
|
|
Transaction
|
Gross
Asset
Derivatives
Presented
In
Statement
of
Assets
and
Liabilities
|
Financial
Instrument
|
Collateral
Received
|
Net Amount
|
|
Foreign
Exchange Contracts |
$333,597
|
$(173,860)
|
$—
|
$159,737
|
|
TOTAL
|
333,597
|
(173,860)
|
—
|
159,737
|
|
Transaction
|
Gross
Liability
Derivatives
Presented
In
Statement
of
Assets
and
Liabilities
|
Financial
Instrument
|
Collateral
Received
|
Net Amount
|
|
Foreign
Exchange Contracts |
$413,041
|
$(173,860)
|
$—
|
$239,181
|
|
TOTAL
|
413,041
|
(173,860)
|
—
|
239,181
|
Other
The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the
amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ materially from
those estimated. The Fund applies investment company accounting
and reporting guidance.
3. SHARES
OF BENEFICIAL INTEREST
The following table summarizes share activity:
|
|
Six
Months Ended
4/30/2025
|
Year
Ended
10/31/2024
|
|
Shares
sold |
9,183,671
|
57,315,371
|
|
Shares
issued to shareholders in payment of distributions declared |
3,483,837
|
7,243,003
|
|
Shares
redeemed |
(31,814,715)
|
(36,177,561)
|
|
NET
CHANGE RESULTING FROM INVESTMENT SHARE TRANSACTIONS |
(19,147,207)
|
28,380,813
|
4. FEDERAL
TAX INFORMATION
At April 30, 2025, the cost of investments
for federal tax purposes was $633,614,190. The net unrealized appreciation of investments for federal
tax purposes was $47,262,691. This consists of unrealized appreciation from investments for those securities having an excess of value
over cost of $67,930,279 and unrealized depreciation from investments for those securities having an excess of cost over value of $20,667,588.
The amounts presented are inclusive of derivative contracts.
As of October 31, 2024,
the Fund had a capital loss carryforward of $158,782,709 which will reduce the Fund’s taxable income arising from
future net realized gains on investments, if any, to the extent permitted by the Code, thereby reducing the amount of distributions to
shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, these
net capital losses retain their character as either short-term or long-term and do not expire.
The following schedule summarizes the Fund’s
capital loss carryforwards:
|
Short-Term
|
Long-Term
|
Total
|
|
$36,572,951
|
$122,209,758
|
$158,782,709
|
Semi-Annual
Financial Statements and Additional Information
23
5. INVESTMENT
ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
The
Adviser provides investment adviser services at no fee. The Fund pays operating expenses associated with the operation and maintenance
of the Fund (excluding fees and expenses that may be charged by the Adviser and its affiliates). Although not contractually obligated
to do so, the Adviser intends to initially voluntarily reimburse operating expenses (excluding extraordinary expenses, and proxy-related
expenses paid by the Fund, if any) such that the Fund will only bear such expenses in an amount of up to 0.15% of the Fund’s
average daily net assets. The Adviser can modify or terminate this voluntary reimbursement at any time at its sole discretion.
Certain of the Fund’s
assets are managed by Federated Hermes (UK) LLP (the “Sub-Adviser”) an affiliate of the Adviser. Under the terms
of a sub-advisory agreement between the Adviser and the Sub-Adviser, the Sub-Adviser receives an annual fee equal to 0.49% of the
portion managed by the Sub-Adviser of the daily net assets of the Fund. The fee is paid by the Adviser out of its resources and is not
an incremental Fund expense. For the six months ended April 30,
2025, the Sub-Adviser earned a fee of $744,976.
Administrative Fee
Federated
Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and
services. FAS does not charge the Fund a fee but is entitled to reimbursement for certain out-of-pocket expenses.
Directors’/Trustees’ and Miscellaneous Fees
Certain
Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate
payment, Independent Directors’/Trustees’ fees and
certain expenses related to conducting meetings of the Directors/Trustees and other
miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related
to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous
Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
6. INVESTMENT
TRANSACTIONS
Purchases and sales of investments, excluding
long-term U.S. government securities and short-term obligations, for the six months ended
April 30, 2025, were as follows:
|
Purchases
|
$167,428,005
|
|
Sales
|
$327,160,389
|
7. CONCENTRATION
OF RISK
The Fund invests in securities of non-U.S.
issuers. Political or economic developments may have an effect on the liquidity and volatility of portfolio
securities and currency holdings.
Cash
The
Fund may place its cash on deposit with financial institutions in the United States, which is insured by the Federal Deposit Insurance
Company (FDIC) up to $250,000. The Fund’s credit risk in
the event of failure of these financial institutions is represented by the difference
between the FDIC limit and the total amounts on deposit. The Fund from time to time may have amounts on deposit in excess of
the insured limits.
8. LINE
OF CREDIT
The Fund participates with certain other
Federated Hermes Funds, on a several basis, in an up to $500,000,000 unsecured, 364-day, committed,
revolving line of credit (LOC) agreement dated June 18, 2024, which was renewed on June 17, 2025. The LOC was made available
to temporarily finance the repurchase or redemption of shares of the Fund, failed trades, payment of dividends, settlement of trades
and for other short-term, temporary or emergency general business purposes. The Fund cannot borrow under the LOC if an inter-fund
loan is outstanding. The Fund’s ability to borrow under the LOC also is subject to the limitations of the Act and various conditions
precedent that must be satisfied before the Fund can borrow. Loans
under the LOC are charged interest at a fluctuating rate per annum equal
to (a) the highest, on any day, of (i) the federal funds effective rate, (ii) the published secured overnight financing rate plus an assigned
percentage, and (iii) 0.0%, plus (b) a margin. Any fund eligible to borrow under the LOC pays its pro rata share of a commitment
fee based on the amount of the lenders’ commitment that has not been utilized, quarterly in arrears and at maturity. As of April
30, 2025, the Fund had no outstanding loans. During the six months ended April 30, 2025, the Fund did not utilize the LOC.
9. INTERFUND
LENDING
Pursuant to an Exemptive Order issued by
the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries
of Federated Hermes, Inc., may participate in an interfund lending program. This program provides an alternative credit facility
allowing the Fund to borrow from other participating affiliated funds. As of April 30, 2025, there were no outstanding loans. During
the six months ended April 30, 2025, the program was not utilized.
10. OPERATING
SEGMENTS
In this reporting period, the Fund adopted
FASB Accounting Standards Update 2023-07, Segment Reporting (Topic 280) - Improvements to
Reportable Segment Disclosures. Adoption of the new standard impacted financial statement disclosures only and did not affect the Fund’s
financial position or the results of its operations. An operating segment is defined as a component of a public entity that engages in
business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the
Semi-Annual
Financial Statements and Additional Information
24
public entity’s
chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance,
and has discrete financial information available. A management committee of the Adviser acts as the CODM. The Fund represents
a single operating segment, as the CODM monitors the operating results of the Fund as a whole and the strategic asset allocation
is determined based on the investment objective of the Fund and executed by the Fund’s portfolio management team. The financial
information in the form of the Fund’s portfolio composition, total returns, expense ratios and changes in net assets (i.e., changes
in net assets resulting from operations, subscriptions and redemptions)
which is reviewed by the CODM to assess the Fund’s performance
in comparison to the Fund’s benchmarks and to make resource allocation decisions for the Fund’s single segment is consistent
with the information presented in these financial statements. Segment assets are reflected on the accompanying Statement of Assets
and Liabilities as “total assets” and significant segment expenses are listed on the accompanying Statement of Operations.
11. INDEMNIFICATIONS
Under the Fund’s organizational documents,
its Officers and Directors/Trustees are indemnified against certain liabilities arising out of the
performance of their duties to the Fund (other than liabilities arising out of their willful misfeasance, bad faith, gross negligence
or reckless disregard of their duties to the Fund). In addition,
in the normal course of business, the Fund provides certain indemnifications under
arrangements with third parties. Typically, obligations to indemnify a third party arise in the context of an arrangement entered into
by the Fund under which the Fund agrees to indemnify such third party for certain liabilities arising out of actions taken pursuant to
the arrangement, provided the third party’s actions are
not deemed to have breached an agreed-upon standard of care (such as willful misfeasance,
bad faith, gross negligence or reckless disregard of their duties under the contract). The Fund’s maximum exposure under these
arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet arisen. The Fund
does not anticipate any material claims or losses pursuant to these arrangements at this time, and accordingly expects the risk of loss
to be remote.
Semi-Annual
Financial Statements and Additional Information
25
Evaluation
and Approval of Advisory Contract–May
2024
EMERGING MARKETS CORE FUND
(THE “FUND”)
At its meetings in May 2024 (the
“May Meetings”), the Fund’s Board of Trustees (the “Board”), including those Trustees who
are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”),
reviewed and unanimously approved the continuation of the investment advisory contract between the Fund and
Federated Investment Management Company (the “Adviser”) and the investment sub-advisory contract between the Adviser
and Federated Hermes (UK) LLP (the “Sub-Adviser” and together with the Adviser, the “Advisers”) with respect to
the Fund (together, the “Contracts”) for an additional one-year term. The Board’s determination to approve the continuation
of the Contracts reflects the exercise of its business judgment after considering all of the information and factors
believed to be relevant and appropriate on whether to approve the continuation of the existing arrangements. The information,
factors and conclusions that formed the basis for the Board’s approval are summarized below.
The Board
considered that the Fund is distinctive in that it is designed for the efficient management of a particular asset class
and is made available for investment only to other funds (each, a “Federated Hermes Fund” and, collectively, the “Federated
Hermes Funds”) advised by the Advisers or their affiliates (collectively, “Federated Hermes”) and a limited number
of other accredited investors.
In addition,
the Board considered that the Advisers do not charge an investment advisory fee for its services, although Federated
Hermes may receive compensation for managing assets invested in the Fund.
Information Received
and Review Process
At the request
of the Independent Trustees, the Fund’s Chief Compliance Officer (the “CCO”) furnished to the Board in advance
of its May Meetings an independent written evaluation of the Fund’s management fee (the “CCO Fee Evaluation Report”).
The Board considered the CCO Fee Evaluation Report, along with other information, in evaluating the reasonableness
of the Fund’s management fee and in determining to approve the continuation of the Contracts.
In addition
to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board considered
information specifically prepared in connection with the approval of the continuation of the Contracts that was presented
at the May Meetings. In this regard, in the months preceding the May Meetings, the Board requested and reviewed
written responses and supporting materials prepared by the Advisers and their affiliates (collectively, “Federated Hermes”)
in response to requests posed to Federated Hermes by independent legal counsel on behalf of the Independent Trustees
encompassing a wide variety of topics, including those summarized below. The Board also considered such additional
matters as the Independent Trustees deemed reasonably necessary to evaluate the Contracts, which included detailed
information about the Fund and Federated Hermes furnished to the Board at its meetings throughout the year and in
between regularly scheduled meetings on particular matters as the need arose.
The Board’s
consideration of the Contracts included review of materials and information covering the following matters,
among others: (1) copies of the Contracts; (2) the nature, quality and extent of the advisory and other services provided
to the Fund by Federated Hermes; (3) Federated Hermes’ business and operations; (4) the Advisers’ investment philosophy,
personnel and processes; (5) the Fund’s investment objectives and strategies; (6) the Fund’s short-term and long-term
performance - in absolute terms (both on a gross basis and net of expenses) and relative an appropriate group of peer
funds and its benchmark; (7) the Fund’s fees and expenses, including the advisory fee and the overall expense structure
of the Fund - in absolute terms and relative to an appropriate group of peer funds, with due regard for contractual or
voluntary expense limitations (if any); (8) the financial condition of Federated Hermes; (9) the Adviser’s profitability with
respect to managing the Fund; (10) distribution and sales activity for the Fund; and (11) the use and allocation of brokerage
commissions derived from trading the Fund’s portfolio securities (if any).
The Board
also considered judicial decisions concerning allegedly excessive investment advisory fees charged to other registered
funds in evaluating the Contracts. Using these judicial decisions as a guide, the Board considered several factors they
deemed relevant to an adviser’s fiduciary duty with respect to its receipt of compensation from a fund, including: (1)
the nature and quality of the services provided by the adviser to the fund and its shareholders, including the performance
of the fund, its benchmark and comparable funds; (2) the adviser’s cost of providing the services and the profitability
to the adviser of providing advisory services to the fund; (3) the extent to which the adviser may realize “economies
of scale” as the fund grows larger and, if such economies of scale exist, whether they have been appropriately shared
with the fund and its shareholders or the family of funds; (4) any “fall-out” benefits that accrue to the adviser because
of its relationship with the fund, including research services received from brokers that execute fund trades and any
fees paid to affiliates of the adviser for services rendered to the fund; (5) comparative fees and expenses, including a comparison
of management fees paid to the adviser with those paid by similar funds managed by the same adviser or other advisers
as well as management fees charged to institutional and other advisory clients of the same adviser for what might be
viewed as like services; and (6) the extent of care, conscientiousness and independence with which the fund’s board members
perform their duties and their expertise, including whether they are fully informed about all facts the board
Semi-Annual
Financial Statements and Additional Information
26
deems relevant
to its consideration of the adviser’s services and fees. The Board considered that the Securities and Exchange
Commission (“SEC”) disclosure requirements regarding the basis for a fund board’s approval of the fund’s investment
advisory contract generally align with the factors listed above. The Board was guided by these factors in its evaluation
of the Contracts to the extent it considered them to be appropriate and relevant, as discussed further below. The Board
considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working
with Federated Hermes on matters relating to the oversight of the other funds advised by Federated Hermes (each, a
“Federated Hermes Fund” and, collectively, the “Federated Hermes Funds”).
In addition,
the Board considered the preferences and expectations of Fund shareholders and the potential disruptions of the
Fund’s operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate
or not renew the Contracts. In particular, the Board recognized that many shareholders likely have invested in the
Fund based on the strength of Federated Hermes’ industry standing and reputation and with the expectation that Federated
Hermes will have a continuing role in providing advisory services to the Fund. Thus, the Board observed that there
are a range of investment options available to the Fund’s shareholders in the marketplace, and such shareholders, having
had the opportunity to consider other investment options, have effectively selected Federated Hermes by virtue of investing
in the Fund.
In determining
to approve the continuation of the Contracts, the members of the Board reviewed and evaluated information
and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment.
While individual members of the Board may have weighed certain factors differently, the Board’s determination
to approve the continuation of the Contracts was based on a comprehensive consideration of all information provided
to the Board throughout the year and specifically with respect to the continuation of the Contracts. The Board recognized
that its evaluation process is evolutionary and that the factors considered and emphasis placed on relevant factors
may change in recognition of changing circumstances in the registered fund marketplace. The Independent Trustees
were assisted throughout the evaluation process by independent legal counsel. In connection with their deliberations
at the May Meetings, the Independent Trustees met separately in executive session with their independent legal
counsel and without management present to review the relevant materials and consider their responsibilities under applicable
laws. In addition, senior management representatives of Federated Hermes also met with the Independent Trustees
and their independent legal counsel to discuss the materials and presentations furnished to the Board at the May Meetings.
The Board considered the approval of the Contracts for the Fund as part of its consideration of agreements for funds
across the family of Federated Hermes Funds, but its approvals were made on a fund-by-fund basis.
Nature, Extent and
Quality of Services
The Board
considered the nature, extent and quality of the services provided to the Fund by the Advisers and the resources
of Federated Hermes dedicated to the Fund. In this regard, the Board evaluated, among other things, the terms of the
Contracts and the full range of services provided to the Fund by Federated Hermes. The Board considered the Advisers’
personnel, investment philosophy and process, investment research capabilities and resources, trade operations capabilities,
experience and performance track record. The Board reviewed the qualifications, backgrounds and responsibilities
of the portfolio management team primarily responsible for the day-to-day management of the Fund and evaluated
Federated Hermes’ ability and experience in attracting and retaining qualified personnel to service the Fund. The Board
considered the trading operations by the Advisers, including the execution of portfolio transactions and the selection of
brokers for those transactions. The Board also considered the Advisers’ ability to deliver competitive investment performance
for the Fund when compared to the Fund’s Performance Peer Group (as defined below), which was deemed by
the Board to be a useful indicator of how the Advisers are executing the Fund’s investment program.
In addition,
the Board considered the financial resources and overall reputation of Federated Hermes and its willingness to
consider and make investments in personnel, infrastructure, technology, cybersecurity, business continuity planning and operational
enhancements that are designed to benefit the Federated Hermes Funds. The Board noted the benefits of the previous
significant acquisition of Hermes Fund Managers Limited by Federated Hermes, which has deepened Federated Hermes’
investment management expertise and capabilities and expanded its access to analytical resources related environmental,
social and governance (“ESG”) to factors and issuer engagement on ESG matters where appropriate. The Board
considered Federated Hermes’ oversight of the securities lending program for the Federated Hermes Funds that engage
in securities lending and noted the income earned by the Federated Hermes Funds that participate in such program. In
addition, the Board considered the quality of Federated Hermes’ communications with the Board and responsiveness to Board
inquiries and requests made from time to time with respect to the Federated Hermes Funds. The Board also considered
that Federated Hermes is responsible for providing the Federated Hermes Funds’ officers.
The Board
received and evaluated information regarding Federated Hermes’ regulatory and compliance environment. The
Board considered Federated Hermes’ compliance program and compliance history and reports from the CCO about Federated
Hermes’ compliance with applicable laws and regulations, including responses to regulatory developments and any
compliance or other issues raised by regulatory agencies. The Board also noted Federated Hermes’ support of the
Semi-Annual
Financial Statements and Additional Information
27
Federated
Hermes Funds’ compliance control structure and the compliance-related resources devoted by Federated Hermes
in support of the Fund’s obligations pursuant to Rule 38a-1 under the Investment Company Act of 1940, including Federated
Hermes’ commitment to respond to rulemaking and other regulatory initiatives of the SEC. The Board considered
Federated Hermes’ approach to internal audits and risk management with respect to the Federated Hermes Funds
and its day-to-day oversight of the Federated Hermes Funds’ compliance with their investment objectives and policies
as well as with applicable laws and regulations, noting that regulatory and other developments had over time led, and
continue to lead, to an increase in the scope of Federated Hermes’ oversight in this regard.
In addition,
the Board noted Federated Hermes’ commitment to maintaining high quality systems and expending substantial
resources to prepare for and respond to ongoing changes due to the market, regulatory and control environments
in which the Fund and its service providers operate.
The Board
considered Federated Hermes’ efforts to provide shareholders in the Federated Hermes Funds with a comprehensive
array of funds with different investment objectives, policies and strategies. The Board considered the expenses
that Federated Hermes had incurred, as well as the entrepreneurial and other risks assumed by Federated Hermes, in
sponsoring and providing on-going services to new funds to expand these opportunities for shareholders. The Board noted
the benefits to shareholders of being part of the family of Federated Hermes Funds, which include the general right to
exchange investments between the same class of shares without the incurrence of additional sales charges.
Based on
these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services
provided by the Advisers to the Fund.
Fund Investment Performance
The Board
considered the investment performance of the Fund. In evaluating the Fund’s investment performance, the Board
considered performance results in light of the Fund’s investment objective, strategies and risks. The Board considered
detailed investment reports on, and the Advisers’ analysis of, the Fund’s performance over different time periods
that were provided to the Board throughout the year and in connection with the May Meetings.
For the
periods ended December 31, 2023, the Fund’s performance underperformed the Performance Peer Group median
for the one-year period, and outperformed the Performance Peer Group median for the three-year and five-year periods.
The Board discussed the Fund’s performance with the Advisers and recognized the efforts being taken by the Advisers
in the context of other factors considered relevant by the Board.
Based on
these considerations, the Board concluded that it had continued confidence in the Advisers’ overall capabilities
to manage the Fund.
Fund Expenses
The Board
considered that the Advisers do not charge an investment advisory fee to this Fund for its services. Because the
Advisers do not charge the Fund an investment advisory fee, the Board noted that it did not consider fee comparisons to
other registered funds or other types of clients of Federated Hermes to be relevant to its evaluation. The Board also considered
the overall expense structure of the Fund, with due regard for contractual or voluntary expense limitations.
Profitability
The Board
received and considered profitability information furnished by Federated Hermes, as requested by the CCO. The
Board considered that the Advisers do not charge an investment advisory fee to the Fund and noted, therefore, that the Advisers
do not profit from providing advisory services to the Fund under the Contract.
The Board
also reviewed information compiled by Federated Hermes comparing its profitability information to other publicly-held
fund management companies, including information regarding profitability trends over time. The Board considered
the CCO’s conclusion that, based on such profitability information, Federated Hermes’ profit margins did not appear
to be excessive. The Board also considered the CCO’s view that Federated Hermes appeared financially sound, with
the resources necessary to fulfill its obligations under its contracts with the Federated Hermes Funds.
Economies of Scale
Because
of the distinctive nature of the Fund as primarily an internal product with an advisory fee of zero, the Board noted
that it did not consider the assessment of whether economies of scale would be realized if the Fund were to grow to a
sufficient size to be particularly relevant to its evaluation.
Other Benefits
The Board
considered information regarding the compensation and other ancillary (or “fall-out”) benefits that Federated Hermes
derived from its relationships with the Federated Hermes Funds.
The Board
noted that an affiliate of the Advisers is entitled to reimbursement for certain out-of-pocket expenses incurred
in providing administrative services to the Fund.
Semi-Annual
Financial Statements and Additional Information
28
In
connection with the Board’s governance of other Federated Hermes Funds, the Board noted that, in addition to receiving
advisory fees under the Federated Hermes Funds’ investment advisory contracts, Federated Hermes’ affiliates also
receive fees for providing other services to the Federated Hermes Funds under separate contracts (e.g., for serving as the
Federated Hermes Funds’ administrator and distributor). In this regard, the Board considered that Federated Hermes’ affiliates
provide distribution and shareholder services to the Federated Hermes Funds, for which they may be compensated
through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The Board also received
and considered information detailing any indirect benefit that Federated Hermes may derive from its receipt of research
services from brokers who execute portfolio trades for the Federated Hermes Funds.
Conclusions
The Board
considered: (i) the CCO’s conclusion that his observations and the information accompanying the CCO Fee Evaluation
Report show that the management fee for the Fund is reasonable; and (ii) the CCO’s recommendation that the Board
approve the management fee. The Board noted that, under these circumstances, no changes were recommended to, and
no objection was raised to the continuation of, the Contracts by the CCO. The CCO also recognized that the Board’s evaluation
of the Federated Hermes Funds’ advisory and sub-advisory arrangements is a continuing and ongoing process that
is informed by the information that the Board requests and receives from management throughout the course of the year
and, in this regard, the CCO noted certain items, and management has committed to reviewing certain items, for future
reporting to the Board as the Board continues its ongoing oversight of the Federated Hermes Funds.
On the basis
of the information and factors summarized above, among other information and factors deemed relevant by the
Board, and the evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the continuation
of the Contracts. The Board based its determination to approve the Contracts on the totality of the circumstances
and relevant factors and with a view of past and future long-term considerations. Not all of the factors and considerations
identified above were necessarily deemed to be relevant to the Fund, nor did the Board consider any one of them
to be determinative.
Semi-Annual
Financial Statements and Additional Information
29
Mutual
funds are not bank deposits or obligations, are not guaranteed by any bank and are not insured or guaranteed by the
U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.
Investment in mutual funds involves investment risk, including the possible loss of principal.
This information is authorized
for distribution to prospective investors only when preceded or accompanied by the Fund’s Private
Offering Memorandum, which contains facts concerning its objective and policies, management fees, expenses and other
information.
In an effort to reduce costs
and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents
to each household in which more than one shareholder of the Fund(s) resides (so-called “householding”), as
permitted by applicable rules. The Fund’s “householding” program covers its/their Prospectus and Statement of Additional
Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies
or information statements. Shareholders must give their written consent to participate in the “householding” program.
The Fund is also permitted to treat a shareholder as having given consent (“implied consent”) if (i)
shareholders with the same last name, or believed to be members of the same family, reside at the same street address
or receive mail at the same post office box, (ii) the Fund gives notice of its intent to “household” at least sixty (60)
days before it begins “householding” and (iii) none of the shareholders in the household have notified the Fund(s)
or their agent of the desire to “opt out” of “householding.” Shareholders who have granted written consent, or
have been deemed to have granted implied consent, can
revoke that consent and opt out of “householding” at any time:
shareholders who purchased shares through an intermediary should contact their representative; other shareholders
may call the Fund at 1-800-341-7400, Option #4.
Emerging Markets Core Fund
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at
FederatedHermes.com/us
or call 1-800-341-7400.
or call 1-800-341-7400.
Federated Securities Corp., Placement Agent
CUSIP 31409N887
Q453026 (6/25)
©
2025 Federated Hermes, Inc.
| Item 8. | Changes in and Disagreements with Accountants for Open-End Management Investment Companies |
Emerging Markets Core Fund: Not Applicable.
| Item 9. | Proxy Disclosures for Open-End Management Investment Companies. |
Emerging Markets Core Fund: Not Applicable.
| Item 10. | Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. |
Emerging Markets Core Fund: The Fund’s disclosure of remuneration items is included as part of the Financial Statements filed under Item 7 of this form.
| Item 11. | Statement Regarding Basis for Approval of Investment Advisory Contract. |
Emerging Markets Core Fund: The Fund’s Evaluation and Approval of Advisory Contract summary by fund appear in the Financial Statements filed under Item 7 of this form.
| Item 12. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
| Item 13. | Portfolio Managers of Closed-End Management Investment Companies. |
Not Applicable
| Item 14. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not Applicable
| Item 15. | Submission of Matters to a Vote of Security Holders. |
No Changes to Report
| Item 16. | Controls and Procedures. |
(a) The registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures as of a date within 90 days of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
| Item 17. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not Applicable
| Item 18. | Recovery of Erroneously Awarded Compensation |
(a) Not Applicable
(b) Not Applicable
| Item 19. | Exhibits |
(a)(1) Not Applicable.
(a)(2) Not Applicable.
(a)(3) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(4) Not Applicable.
(a)(5) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: Federated Hermes Core Trust
By: /s/ Jeremy D. Boughton
Jeremy D. Boughton, Principal Financial Officer
Date: June 23, 2025
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/ John B. Fisher
John B. Fisher, President - Principal Executive Officer
Date: June 23, 2025
By: /s/ Jeremy D. Boughton
Jeremy D. Boughton, Principal Financial Officer
Date: June 23, 2025