(a) As of the end of the period covered by this report, the
registrant has adopted a code of ethics (the “Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive
and Financial Officers”) that applies to the registrant’s Principal Executive Officer and Principal Financial Officer; the
registrant’s Principal Financial Officer also serves as the Principal Accounting Officer.
(c) There was no amendment to the registrant’s code
of ethics described in Item 2(a) above during the period covered by the report.
(d) There was no waiver granted, either actual or implicit,
from a provision to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.
(e) Not Applicable
(f)(3) The registrant hereby undertakes to provide any person,
without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400,
and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.
|
Item 3. |
Audit Committee Financial Expert |
The registrant’s Board has determined that each of
the following members of the Board’s Audit Committee is an “audit committee financial expert,” and is “independent,”
for purposes of this Item 3: John G. Carson, Thomas M. O’Neill and John S. Walsh.
|
Item 4. |
Principal Accountant Fees and Services |
(a) Audit Fees billed
to the registrant for the two most recent fiscal years:
Fiscal year ended 2025 - $36,920
Fiscal year ended 2024 - $35,000
(b) Audit-Related
Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2025 - $0
Fiscal year ended 2024 - $0
Amount requiring approval of the registrant’s Audit
Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(c) Tax Fees billed
to the registrant for the two most recent fiscal years:
Fiscal year ended 2025 - $0
Fiscal year ended 2024 - $0
Amount requiring approval of the registrant’s Audit
Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(d) All Other Fees
billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2025 - $0
Fiscal year ended 2024 - $0
Amount requiring approval of the registrant’s Audit
Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(e)(1) Audit Committee Policies regarding Pre-approval
of Services.
The Audit Committee is required to pre-approve
audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair
the auditor’s independence. Unless a type of service to be provided by the independent auditor has received general pre-approval,
it will require specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific
pre-approval by the Audit Committee.
Certain services have the general pre-approval
of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically
provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor
without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee
will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will
not delegate to management its responsibilities to pre-approve services performed by the independent auditor.
The Audit Committee has delegated pre-approval
authority to its chairman (the “Chairman”) for services that do not exceed a specified dollar threshold. The Chairman or Chief
Audit Executive will report any such pre-approval decisions to the Audit Committee at its next scheduled meeting. The Committee will designate
another member with such pre-approval authority when the Chairman is unavailable.
AUDIT SERVICES
The annual audit services engagement terms and fees will
be subject to the specific pre-approval of the Audit Committee. The Audit Committee will approve, if necessary, any changes in terms,
conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.
In addition to the annual audit services engagement specifically
approved by the Audit Committee, the Audit Committee may grant general pre-approval for other audit services, which are those services
that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain audit services; with limited exception,
all other audit services must be specifically pre-approved by the Audit Committee.
AUDIT-RELATED SERVICES
Audit-related services are assurance and related services
that are reasonably related to the performance of the audit or review of the RIC’s financial statements or that are traditionally
performed by the independent auditor. The Audit Committee believes that the provision of audit-related services does not impair the independence
of the auditor, and has pre-approved certain audit-related services; all other audit-related services must be specifically pre-approved
by the Audit Committee.
TAX SERVICES
The Audit Committee believes that the independent auditor
can provide tax services to the RIC such as tax compliance, tax planning and tax advice without impairing the auditor’s independence.
However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended
by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal
Revenue Code and related regulations. The Audit Committee has pre-approved certain tax services; with limited exception, all tax services
involving large and complex transactions must be specifically pre-approved by the Audit Committee.
ALL OTHER SERVICES
With respect to the provision of permissible services other
than audit, review or attest services the pre-approval requirement is waived if:
(1) With respect
to such services rendered to the Funds, the aggregate amount of all such services provided constitutes no more than five percent of the
total amount of revenues paid by the audit client to its accountant during the fiscal year in which the services are provided; and,
(2) With respect
to such services rendered to the Fund’s investment adviser ( the “Adviser”)and any entity controlling, controlled by
to under common control with the Adviser such as affiliated non-U.S. and U.S. funds not under the Audit Committee’s purview and
which do not fall within a category of service which has been determined by the Audit Committee not to have a direct impact on the operations
or financial reporting of the RIC, the aggregate amount of all services provided constitutes no more than five percent of the total amount
of revenues paid to the RIC’s auditor by the RIC, its Adviser and any entity controlling, controlled by, or under common control
with the Adviser during the fiscal year in which the services are provided; and
(3) Such services
were not recognized by the issuer or RIC at the time of the engagement to be non-audit services; and
(4) Such services
are promptly brought to the attention of the Audit Committee and approved prior to the completion of the audit by the Audit Committee
or by one or more members of the Audit Committee who are members of the Board of Directors to whom authority to grant such approvals has
been delegated by the Audit Committee.
The Audit Committee may grant general pre-approval to those
permissible non-audit services which qualify for pre-approval and which it believes are routine and recurring services, and would not
impair the independence of the auditor.
The Securities and Exchange Commission’s (the “SEC”)
rules and relevant guidance should be consulted to determine the precise definitions of these services and applicability of exceptions
to certain of the prohibitions.
PRE-APPROVAL FEE LEVELS
Pre-approval fee levels for all services to be provided by
the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require
specific pre-approval by the Audit Committee.
PROCEDURES
Requests or applications to provide services that require
specific approval by the Audit Committee will be submitted to the Audit Committee by the Fund’s Principal Accounting Officer and/or
the Chief Audit Executive of Federated Hermes, Inc., only after those individuals have determined that the request or application is consistent
with the SEC’s rules on auditor independence.
(e)(2) Percentage of services identified in items 4(b)
through 4(d) that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation
S-X:
4(b)
Fiscal year ended 2025 – 0%
Fiscal year ended 2024 - 0%
Percentage of services provided to the registrant’s
Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant
that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and
0% respectively.
4(c)
Fiscal year ended 2025 – 0%
Fiscal year ended 2024 – 0%
Percentage of services provided to the registrant’s
Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant
that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and
0% respectively.
4(d)
Fiscal year ended 2025 – 0%
Fiscal year ended 2024 – 0%
Percentage of services provided to the registrant’s
Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant
that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and
0% respectively.
(f) NA
(g) Non-Audit Fees
billed to the registrant, the registrant’s Adviser, and certain entities controlling, controlled by or under common control with
the Adviser:
Fiscal year ended 2025 - $155,414
Fiscal year ended 2024 - $179,174
(h) The registrant’s
Audit Committee has considered that the provision of non-audit services that were rendered to the registrant’s Adviser (not including
any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and
any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that
were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s
independence.
(i) Not Applicable
(j) 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 |
Annual Financial Statements
and Additional Information
Federated
Hermes Short-Intermediate Municipal Fund
A
Portfolio of Federated Hermes Short-Intermediate Duration Municipal Trust
Not FDIC Insured ▪ May
Lose Value ▪ No Bank Guarantee
Portfolio
of Investments
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
Black
Belt Energy Gas District, AL, Gas Prepay Revenue Bonds Project No. 4 (Series 2019A-1), (Morgan Stanley GTD),
4.000%,
Mandatory Tender 12/1/2025 |
|
|
|
|
Black
Belt Energy Gas District, AL, Gas Project Revenue Refunding Bonds (Series 2023D-1), (Goldman Sachs Group, Inc.
GTD),
5.500%, Mandatory Tender 2/1/2029 |
|
|
|
|
Black
Belt Energy Gas District, AL, Gas Revenue Bonds (Series 2022B-1), (Goldman Sachs Group, Inc. GTD), 4.000%,
Mandatory
Tender 10/1/2027 |
|
|
|
|
Columbia,
AL IDB PCRB (Alabama Power Co.), PCR Refunding Bonds (Series 2014-D), 3.757%, Mandatory Tender 6/1/2028 |
|
|
|
|
Jefferson
County, AL Sewer System, Sewer Revenue Warrants (Series 2024), 5.000%, 10/1/2038 |
|
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|
Mobile,
AL IDB (Alabama Power Co.), Pollution Control Revenue Bonds (Series 2007A), 3.375%, Mandatory
Tender
6/26/2029 |
|
|
|
|
Southeast
Energy Authority, AL, Commodity Supply Revenue Bonds (Series 2023B), (Royal Bank of Canada GTD), 5.000%,
Mandatory
Tender 6/1/2030 |
|
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Chandler,
AZ IDA (Intel Corp.), Industrial Development Revenue Bonds (Series 2019), 4.000%, Mandatory Tender 6/1/2029
|
|
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|
|
Coconino
County, AZ Pollution Control Corp. (Nevada Power Co.), Pollution Control Refunding Revenue Bonds
(Series
2017A), 4.125%, Mandatory Tender 3/31/2026 |
|
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|
Maricopa
County, AZ, IDA (Banner Health), Revenue Bonds (Series 2023A-1), 5.000%, Mandatory Tender 5/15/2026 |
|
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Phoenix,
AZ IDA (Memorial Towers (TC2) Senior Housing LP), Multifamily Housing Revenue Bonds (Series 2024A),
3.350%,
12/1/2027 |
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California
Infrastructure & Economic Development Bank (Los Angeles County Museum of Art), Refunding Revenue Bonds
(Series
2021A), 1.200%, Mandatory Tender 6/1/2028 |
|
|
|
|
California
Municipal Finance Authority (Waste Management, Inc.), (Series 2020B), (Waste Management Holdings, Inc. GTD),
3.850%,
Mandatory Tender 6/1/2026 |
|
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|
|
California
Municipal Finance Authority (Waste Management, Inc.), Solid Waste Disposal Revenue Bonds (Series 2017A),
(Waste
Management Holdings, Inc. GTD), 4.100%, Mandatory Tender 12/1/2025 |
|
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California
State, UT GO Various Purpose Refunding Bonds, 5.000%, 9/1/2027 |
|
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|
|
California
State, UT GO Various Purpose Refunding Bonds, 5.000%, 9/1/2028 |
|
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|
Carlsbad,
CA (Mariposa Apartments), Multifamily Housing Revenue Bonds (Series 2003A), (Federal National Mortgage
Association
COL), 4.600%, 2/1/2036 |
|
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|
Los
Angeles, CA Department of Airports, Subordinate Refunding Revenue Bonds (Series 2025F), 5.000%, 5/15/2028 |
|
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|
San
Diego, CA Housing Authority (Rancho del Norte Apartments), Multifamily Housing Revenue Bonds (Series 2003C),
(Federal
National Mortgage Association COL), 4.600%, 2/1/2036 |
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Colorado
Health Facilities Authority (Advent Health System/Sunbelt Obligated Group), Hospital Revenue Bonds
(Series
2024), 5.000%, Mandatory Tender 11/15/2029 |
|
|
|
|
Colorado
Housing and Finance Authority (Fitz Affordable Owner, LLC), Multifamily Housing Revenue Bonds (Series 2024B),
3.180%,
Mandatory Tender 9/1/2027 |
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Connecticut
State, UT GO Refunding Bonds (Series 2022D), 5.000%, 9/15/2026 |
|
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Connecticut
State, UT GO Refunding Bonds (Series 2022D), 5.000%, 9/15/2027 |
|
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Broward
County, FL HFA (St. Joseph Manor II, LLLP), Multifamily Housing Revenue Bonds (Series 2023), (United States
Treasury
COL), 3.500%, Mandatory Tender 4/1/2026 |
|
|
|
|
Florida
Development Finance Corp. (Tampa General Hospital), Healthcare Facilities Revenue Bonds (Series 2024B), 5.000%,
Mandatory
Tender 10/1/2031 |
|
Annual
Financial Statements and Additional Information
|
|
|
|
|
|
|
|
MUNICIPAL
BONDS—continued
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Lee
County, FL HFA (Amaryllis Park Place III, LLC), Multifamily Housing Revenue Bonds (Series 2025), 4.000%, Mandatory
Tender
11/1/2027 |
|
|
|
|
Lee
County, FL HFA (Crossings at Cape Coral Apartments), Multifamily Housing Revenue Bonds (Series 2023), (United States
Treasury
GTD), 3.500%, Mandatory Tender 2/1/2026 |
|
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|
Orlando,
FL Utilities Commission, Utility System Revenue Bonds (Series 2023A), 5.000%, 10/1/2038 |
|
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|
|
Orlando,
FL Utilities Commission, Utility System Revenue Bonds (Series 2023A), 5.000%, 10/1/2039 |
|
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|
Venice,
FL (Village on the Isle), Village on The Isle Project TEMPS-70 Retirement Community Revenue Improvement Bonds
(Series
2024B-2), 4.500%, 1/1/2030 |
|
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Burke
County, GA Development Authority (Georgia Power Co.), Vogtle Project PCRBs (First Series 2013), 3.375%,
Mandatory
Tender 3/12/2027 |
|
|
|
|
Main
Street Natural Gas, Inc., GA, Gas Supply Revenue Bonds (Series 2023C), (Royal Bank of Canada GTD), 5.000%,
Mandatory
Tender 9/1/2030 |
|
|
|
|
Main
Street Natural Gas, Inc., GA, Gas Supply Revenue Bonds (Series 2023D), (Citigroup, Inc. GTD), 5.000%, Mandatory
Tender
12/1/2030 |
|
|
|
|
Main
Street Natural Gas, Inc., GA, Gas Supply Revenue Bonds (Series 2023E-1), (Royal Bank of Canada GTD), 5.000%,
Mandatory
Tender 6/1/2031 |
|
|
|
|
Main
Street Natural Gas, Inc., GA, Gas Supply Revenue Bonds (Series 2024B), (Royal Bank of Canada GTD), 5.000%,
Mandatory
Tender 3/1/2032 |
|
|
|
|
Main
Street Natural Gas, Inc., GA, Gas Supply Revenue Bonds (Series 2024C), (Citigroup, Inc. GTD), 5.000%, Mandatory
Tender
12/1/2031 |
|
|
|
|
Main
Street Natural Gas, Inc., GA, Gas Supply Revenue Bonds (Series 2024D-1), (Toronto Dominion Bank GTD), 5.000%,
Mandatory
Tender 4/1/2031 |
|
|
|
|
Monroe
County, GA Development Authority (Georgia Power Co.), Scherer Plant PCRBs (First Series 1995), 2.250%, 7/1/2025
|
|
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|
|
Monroe
County, GA Development Authority (Georgia Power Co.), Scherer Project PCRBs (First Series 2012), 3.875%,
Mandatory
Tender 3/6/2026 |
|
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|
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|
Granite
City, IL (Waste Management, Inc.), Solid Waste Disposal Revenue Bonds (Series 2002), 1.250%, 5/1/2027 |
|
|
|
|
Illinois
Finance Authority (Presbyterian Homes Obligated Group, IL), Revenue Bonds (Series 2021B) FRNs, 2.620% (SIFMA
7-day
+0.700%), Mandatory Tender 5/1/2026 |
|
|
|
|
Illinois
State, UT GO Bonds (Series 2017D), 5.000%, 11/1/2026 |
|
|
|
|
Illinois
State, UT GO Bonds (Series 2017D), 5.000%, 11/1/2027 |
|
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|
Illinois
State, UT GO Bonds (Series 2023D), 5.000%, 7/1/2028 |
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Indiana
Finance Authority (Indiana University Health Obligated Group), Revenue Bonds (Series 2025D-1), 5.000%, Mandatory
Tender
10/1/2029 |
|
|
|
|
Indianapolis,
IN Local Public Improvement Bond Bank (Indianapolis, IN Airport Authority), Revenue Bonds (Series 2025B-2),
5.000%,
1/1/2029 |
|
|
|
|
Rockport,
IN (Indiana Michigan Power Co.), Pollution Control Revenue Refunding Bonds (Series 2025A), 3.700%, Mandatory
Tender
6/1/2029 |
|
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|
|
|
|
|
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|
|
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|
Iowa
Finance Authority (Lifespace Communities, Inc.), Revenue Bonds (Series 2021B) FRNs, 3.630% (SOFR x 0.70 +0.550%),
Mandatory
Tender 5/15/2026 |
|
|
|
|
|
|
|
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|
Kentucky
Public Energy Authority, Gas Supply Revenue Bonds (Series 2024A-1), (Goldman Sachs Group, Inc. GTD), 5.000%,
Mandatory
Tender 7/1/2030 |
|
|
|
|
Kentucky
Public Energy Authority, Gas Supply Revenue Refunding Bonds (Series 2025A), (Morgan Stanley GTD), 5.250%,
Mandatory
Tender 12/1/2029 |
|
|
|
|
Louisville
& Jefferson County, KY Metropolitan Government (Louisville Gas & Electric Co.), PCRBs (Series 2005A), 1.750%,
Mandatory
Tender 7/1/2026 |
|
Annual
Financial Statements and Additional Information
|
|
|
|
|
|
|
|
MUNICIPAL
BONDS—continued
|
|
|
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|
|
|
|
|
|
Trimble
County, KY (Louisville Gas & Electric Co.), PCR Refunding Bonds (Series 2016A), 1.300%, Mandatory
Tender
9/1/2027 |
|
|
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|
|
|
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|
|
Louisiana
State Housing Corporation (Atrium Ridge, LP), Multifamily Housing Revenue Bonds (Series 2024B), (United States
Treasury
GTD), 3.750%, Mandatory Tender 2/1/2027 |
|
|
|
|
Louisiana
State Offshore Terminal Authority (Loop LLC), Deepwater Port Revenue Bonds (Series 2007A), 4.150%, 9/1/2027
|
|
|
|
|
St.
John the Baptist Parish, LA (Marathon Oil Corp.), Revenue Refunding Bonds (Series 2017B-2), 2.375%, Mandatory
Tender
7/1/2026 |
|
|
|
|
|
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|
|
|
|
|
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|
|
Massachusetts
Development Finance Agency (Mass General Brigham), Revenue Bonds (Series 2019T-1) FRNs, 2.520%
(SIFMA
7-day +0.600%), Mandatory Tender 1/29/2026 |
|
|
|
|
Massachusetts
Development Finance Agency (Waste Management, Inc.), Solid Waste Disposal Revenue Bonds (Series 2002),
1.250%,
5/1/2027 |
|
|
|
|
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|
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|
|
|
|
|
|
Lansing,
MI Board of Water & Light, Utility System Revenue Bonds (Series 2021B), 2.000%, Mandatory Tender 7/1/2026
|
|
|
|
|
Michigan
State Building Authority, Revenue Refunding Bonds Facilities Program (Series 2023-II), 5.000%, 10/15/2037 |
|
|
|
|
Michigan
State Finance Authority (McLaren Health Care Corp.), Hospital Revenue Refunding Bonds (Series 2015D-2),
1.200%,
Mandatory Tender 4/13/2028 |
|
|
|
|
Michigan
Tobacco Settlement Finance Authority, Tobacco Settlement Asset-Backed Senior Current Interest Bonds
(Series
2020A Class 1), 5.000%, 6/1/2032 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missouri
State HEFA (Lutheran Senior Services), Senior Living Facilities Revenue Bonds (Series 2016B), 5.000%, 2/1/2026 |
|
|
|
|
|
|
|
|
|
Nebraska
Public Power District, General Revenue Bonds (Series 2023A), 5.000%, 7/1/2028 |
|
|
|
|
|
|
|
|
|
Washoe
County, NV (Sierra Pacific Power Co.), Gas and Water Facilities Refunding Revenue Bonds (Series 2016B), 3.625%,
Mandatory
Tender 10/1/2029 |
|
|
|
|
|
|
|
|
|
National
Finance Authority, NH (Springpoint Senior Living), Senior Living Revenue Refunding Bonds (Series 2021),
4.000%,
1/1/2026 |
|
|
|
|
National
Finance Authority, NH (Springpoint Senior Living), Senior Living Revenue Refunding Bonds (Series 2021),
4.000%,
1/1/2027 |
|
|
|
|
National
Finance Authority, NH (Springpoint Senior Living), Senior Living Revenue Refunding Bonds (Series 2021),
4.000%,
1/1/2028 |
|
|
|
|
National
Finance Authority, NH (Springpoint Senior Living), Senior Living Revenue Refunding Bonds (Series 2021),
4.000%,
1/1/2029 |
|
|
|
|
National
Finance Authority, NH (Springpoint Senior Living), Senior Living Revenue Refunding Bonds (Series 2021),
4.000%,
1/1/2030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Jersey EDA (New Jersey State), School Facilities Construction Refunding Bonds (Series 2023RRR), 5.000%, 3/1/2026
|
|
|
|
|
New
Jersey EDA (New Jersey State), School Facilities Construction Refunding Bonds (Series 2023RRR), 5.000%, 3/1/2028
|
|
|
|
|
New
Jersey EDA (New Jersey State), School Facilities Construction Refunding SIFMA Index Bonds (Series 2013 I) FRNs,
3.170%
(SIFMA 7-day +1.250%), 9/1/2025 |
|
|
|
|
New
Jersey EDA (New Jersey-American Water Co., Inc.), Water Facilities Refunding Revenue Bonds (Series 2020D), 1.100%,
Mandatory
Tender 12/1/2027 |
|
|
|
|
New
Jersey State Educational Facilities Authority (New Jersey State), Higher Education Capital Improvement Fund
(Series
2023A), 5.000%, 9/1/2035 |
|
|
|
|
New
Jersey State Educational Facilities Authority (New Jersey State), Higher Education Capital Improvement Fund
(Series
2023A), 5.000%, 9/1/2036 |
|
|
|
|
New
Jersey State Educational Facilities Authority (New Jersey State), Higher Education Capital Improvement Fund
(Series
2023A), 5.000%, 9/1/2037 |
|
Annual
Financial Statements and Additional Information
|
|
|
|
|
|
|
|
MUNICIPAL
BONDS—continued
|
|
|
|
|
|
|
|
|
|
New
Jersey State Educational Facilities Authority (New Jersey State), Higher Education Capital Improvement Fund
(Series
2023A), 5.000%, 9/1/2038 |
|
|
|
|
New
Jersey State Transportation Trust Fund Authority (New Jersey State), Transportation System Bonds (Series 2023AA),
5.000%,
6/15/2026 |
|
|
|
|
New
Jersey State Transportation Trust Fund Authority (New Jersey State), Transportation System Bonds (Series 2023AA),
5.000%,
6/15/2038 |
|
|
|
|
New
Jersey Turnpike Authority, Turnpike Revenue Bonds (Series 2017A), 5.000%, 1/1/2027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Farmington,
NM (Public Service Co., NM), PCR Refunding Bonds San Juan Project (Series 2010E), 3.875%, Mandatory
Tender
6/1/2029 |
|
|
|
|
New
Mexico State Hospital Equipment Loan Council (Presbyterian Healthcare Services), Hospital System Revenue Bonds
(Series
2019B), 5.000%, Mandatory Tender 8/1/2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metropolitan
Transportation Authority, NY (MTA Transportation Revenue), Transportation Revenue Variable Rate Refunding
Bonds
(Series 2002G-1F) FRNs, 3.378% (SOFR x 0.67 +0.430%), 11/1/2026 |
|
|
|
|
Monroe
County, NY IDA (Andrews Terrace Community Partners, LP), Multifamily Housing Revenue Bonds (Series 2023B-1),
(United
States Treasury GTD), 5.000%, Mandatory Tender 7/1/2027 |
|
|
|
|
Monroe
County, NY IDA (Andrews Terrace Community Partners, LP), Multifamily Housing Revenue Bonds (Series 2023B-2),
(United
States Treasury GTD), 5.000%, Mandatory Tender 7/1/2027 |
|
|
|
|
New
York City Housing Development Corp., Multifamily Housing Revenue Bonds (Series 2024B-2), 3.700%, Mandatory
Tender
7/3/2028 |
|
|
|
|
New
York City, NY Transitional Finance Authority, Future Tax Secured Subordinate Bonds (Series 2024A-1), 5.000%, 5/1/2037
|
|
|
|
|
New
York City, NY Transitional Finance Authority, Future Tax Secured Subordinate Bonds (Series 2024A-1), 5.000%, 5/1/2038
|
|
|
|
|
New
York City, NY, UT GO Bonds (Fiscal 2023 Series D), 5.000%, 8/1/2025 |
|
|
|
|
New
York Transportation Development Corporation (American Airlines, Inc.), Special Facilities Revenue Refunding Bonds
(Series
2021), 2.250%, 8/1/2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
Carolina HFA, Revenue Bonds (Series 2017 38-B), 4.000%, 7/1/2047 |
|
|
|
|
North
Carolina Medical Care Commission (United Methodist Retirement Homes), Retirement Community Revenue Bonds
TEMPS-50
(Series 2024B-2), 3.750%, 10/1/2028 |
|
|
|
|
North
Carolina Medical Care Commission (United Methodist Retirement Homes), Retirement Community Revenue Bonds
TEMPS-85
(Series 2024B-1), 4.250%, 10/1/2028 |
|
|
|
|
North
Carolina Medical Care Commission (United Methodist Retirement Homes), Retirement Facilities First Mortgage
Revenue
Bonds (Series 2024), 5.000%, 10/1/2039 |
|
|
|
|
North
Carolina State Turnpike Authority, Triangle Expressway System Senior Lien Turnpike Revenue Refunding Bonds
(Series
2018), 5.000%, 1/1/2027 |
|
|
|
|
North
Carolina State Turnpike Authority, Triangle Expressway System Senior Lien Turnpike Revenue Refunding Bonds
(Series
2018), 5.000%, 1/1/2028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Columbus,
OH, UT GO Various Purpose Bonds (Series 2023A), 5.000%, 8/15/2038 |
|
|
|
|
Columbus-Franklin
County, OH Finance Authority (Dering Family Homes Owner, LLC), Multifamily Housing Revenue Bonds
(Series
2023), (United States Treasury GTD), 5.000%, Mandatory Tender 2/1/2027 |
|
|
|
|
Cuyahoga,
OH Metropolitan Housing Authority (Woodhill Station East, LLC), Multifamily Housing Revenue Bonds
(Series
2024), (United States Treasury GTD), 3.450%, Mandatory Tender 2/1/2027 |
|
|
|
|
Lancaster,
OH Port Authority, Gas Supply Revenue Refunding Bonds (Series 2024A), (Royal Bank of Canada GTD), 5.000%,
Mandatory
Tender 8/1/2030 |
|
|
|
|
Ohio
Air Quality Development Authority (American Electric Power Co., Inc.), Air Quality Revenue Refunding Bonds
(Series
2014A), 2.400%, Mandatory Tender 10/1/2029 |
|
|
|
|
Ohio
HFA (Beechwood RAD, LLC), Multifamily Housing Revenue Bonds (Series 2025), (United States Treasury GTD), 3.370%,
Mandatory
Tender 3/1/2027 |
|
|
|
|
Ohio
HFA (Cedar Redevelopment Phase IV LLC), Multifamily Housing Revenue Bonds (Series 2024), (United States Treasury
GTD),
3.600%, Mandatory Tender 6/1/2027 |
|
Annual
Financial Statements and Additional Information
|
|
|
|
|
|
|
|
MUNICIPAL
BONDS—continued
|
|
|
|
|
|
|
|
|
|
Ohio
HFA (Riverview San Marco, LLC), Multifamily Housing Revenue Bonds (Series 2023), (United States Treasury COL),
5.000%,
Mandatory Tender 8/1/2025 |
|
|
|
|
Ohio
HFA (Springboro Sherman, LP), Multifamily Housing Revenue Bonds (Series 2024), (United States Treasury GTD),
3.530%,
Mandatory Tender 2/1/2027 |
|
|
|
|
Ohio
State Hospital Revenue (Cleveland Clinic), Hospital Revenue Bonds (Series 2019C), 2.750%, Mandatory
Tender
5/1/2028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oklahoma
County, OK Finance Authority (Choctaw-Nicoma Park Public Schools), Educational Facilities Lease Revenue Bonds
(Series
2023), 5.000%, 9/1/2026 |
|
|
|
|
Oklahoma
County, OK Finance Authority (Choctaw-Nicoma Park Public Schools), Educational Facilities Lease Revenue Bonds
(Series
2023), 5.000%, 9/1/2028 |
|
|
|
|
Oklahoma
County, OK Finance Authority (Choctaw-Nicoma Park Public Schools), Educational Facilities Lease Revenue Bonds
(Series
2023), 5.000%, 9/1/2030 |
|
|
|
|
Oklahoma
HFA (Crimson Flats West LP), Revenue Bonds (Series 2025), (United States Treasury GTD), 3.625%, Mandatory
Tender
5/1/2027 |
|
|
|
|
Oklahoma
HFA (Lakeshore Pointe, LLC), Collateralized Revenue Bonds (Series 2024), (United States Treasury GTD), 3.350%,
Mandatory
Tender 12/1/2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bethlehem,
PA Area School District Authority, School Revenue Bonds (Series 2021C) FRNs, 3.298% (SOFR x 0.67 +0.350%),
Mandatory
Tender 11/1/2025 |
|
|
|
|
Montgomery
County, PA IDA (Constellation Energy Generation LLC), Revenue Refunding Bonds (Series 2023A), 4.100%,
Mandatory
Tender 4/3/2028 |
|
|
|
|
Pennsylvania
State Economic Development Financing Authority (UPMC Health System), Revenue Bonds (Series 2023A-1),
5.000%,
5/15/2031 |
|
|
|
|
Pittsburgh,
PA Water & Sewer Authority, Water and Sewer System First Lien Revenue Bonds (Series 2023B), (Assured
Guaranty,
Inc. INS), 5.000%, 9/1/2038 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
Carolina State Public Service Authority (Santee Cooper), Revenue and Refunding Bonds (Series 2025B),
5.000%,
12/1/2028 |
|
|
|
|
|
|
|
|
|
Chattanooga,
TN Health, Educational & Housing Facility Board (Espero Chattanooga LP), Multifamily Housing Bonds
(Series
2023), 3.000%, Mandatory Tender 11/1/2027 |
|
|
|
|
Chattanooga,
TN Health, Educational & Housing Facility Board (One Westside Phase 1B, LP), Multifamily Housing Revenue
Bonds
(Series 2024), (United States Treasury GTD), 3.600%, Mandatory Tender 6/1/2028 |
|
|
|
|
Dickson,
TN Health and Educational Facilities Board (BTT Development IV, LP and Housing Associates, LP), Multifamily
Housing
Bonds (Series 2024), (United States Treasury GTD), 3.000%, Mandatory Tender 4/1/2027 |
|
|
|
|
Knox
County, TN Health Education & Housing Facilities Board (Pines III, LP), Multifamily Housing Bonds (Series 2024),
(United
States Treasury GTD), 3.100%, Mandatory Tender 9/1/2027 |
|
|
|
|
Metropolitan
Nashville, TN Airport Authority, Subordinate Airport Revenue Bonds (Series 2019B), 5.000%, 7/1/2028 |
|
|
|
|
Tennergy
Corp., TN Gas Revenue, Gas Supply Revenue Bonds (Series 2021A), (Morgan Stanley GTD), 4.000%, Mandatory
Tender
9/1/2028 |
|
|
|
|
Tennessee
Housing Development Agency, Revenue Refunding Bonds (Issue 2014-2C), 4.000%, 1/1/2045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boerne,
TX ISD, UT GO School Building Bonds (Series 2024), (Texas Permanent School Fund Guarantee Program GTD),
4.000%,
Mandatory Tender 2/1/2028 |
|
|
|
|
Dallas-Fort
Worth, TX International Airport, Joint Revenue Refunding Bonds (Series 2020A), 5.000%, 11/1/2026 |
|
|
|
|
Ector
County, TX ISD, UT GO School Building Bonds (Series 2024B), (Texas Permanent School Fund Guarantee Program
GTD),
4.000%, Mandatory Tender 8/15/2027 |
|
|
|
|
Fort
Bend, TX ISD, UT GO Refunding Bonds (Series 2025B), (Texas Permanent School Fund Guarantee Program GTD),
3.800%,
Mandatory Tender 8/1/2028 |
|
|
|
|
Fort
Bend, TX ISD, UT GO School Building and Refunding Bonds (Series 2024B), (Texas Permanent School Fund Guarantee
Program
GTD), 4.000%, Mandatory Tender 8/1/2027 |
|
Annual
Financial Statements and Additional Information
|
|
|
|
|
|
|
|
MUNICIPAL
BONDS—continued
|
|
|
|
|
|
|
|
|
|
Fort
Bend, TX ISD, Variable Rate UT School Building and Refunding Bonds (Series 2020B), (Texas Permanent School Fund
Guarantee
Program GTD), 0.875%, Mandatory Tender 8/1/2025 |
|
|
|
|
Grand
Parkway Transportation Corp., Subordinate Tier Toll Revenue Bonds (Series 2023 TELA Supported), 5.000%,
Mandatory
Tender 4/1/2028 |
|
|
|
|
Gulf
Coast, TX Waste Disposal Authority (Waste Management, Inc.), Solid Waste Disposal Revenue Bonds (Series 2003B),
1.500%,
5/1/2028 |
|
|
|
|
Harris
County, TX Cultural Education Facilities Finance Corp. (Baylor College of Medicine), Medical Facilities Mortgage
Revenue
Bonds (Series 2024A), 5.000%, 5/15/2029 |
|
|
|
|
Harris
County, TX Cultural Education Facilities Finance Corp. (Memorial Hermann Health System), Revenue Bonds
(Series
2024C), 5.000%, Mandatory Tender 7/1/2029 |
|
|
|
|
Housing
Options, Inc. (Dallas, TX Housing Authority) (The Culbreath, LP), Multifamily Housing Revenue Bonds (Series 2025),
(United
States Treasury GTD), 3.750%, Mandatory Tender 11/1/2028 |
|
|
|
|
Lower
Colorado River Authority, TX (LCRA Transmission Services Corp.), Transmission Contract Refunding Revenue Bonds
(Series
2019), 5.000%, 5/15/2028 |
|
|
|
|
Lower
Colorado River Authority, TX (LCRA Transmission Services Corp.), Transmission Contract Refunding Revenue Bonds
(Series
2023A), (Assured Guaranty, Inc. INS), 5.000%, 5/15/2038 |
|
|
|
|
Matagorda
County, TX Navigation District No. 1 (AEP Texas, Inc.), PCR Refunding Bonds (Central Power and Light Company
Project)
(Series 1996), 4.250%, 5/1/2030 |
|
|
|
|
Matagorda
County, TX Navigation District No. 1 (AEP Texas, Inc.), PCR Refunding Bonds (Series 2001A), 2.600%, 11/1/2029
|
|
|
|
|
Mesquite,
TX Housing Finance Corp. (Palladium Bruton Road, Ltd.), Multifamily Housing Revenue Bonds (Series 2024),
(United
States Treasury GTD), 3.350%, Mandatory Tender 8/1/2027 |
|
|
|
|
North
East, TX ISD, UT GO Refunding Bonds (Series 2024), (Texas Permanent School Fund Guarantee Program GTD),
3.750%,
Mandatory Tender 8/1/2027 |
|
|
|
|
North
Texas Municipal Water District Water System, Water System Revenue Refunding and Improvement Bonds
(Series
2025), 5.000%, 9/1/2034 |
|
|
|
|
North
Texas Tollway Authority, First Tier Revenue Refunding Bonds (Series 2023A), 5.000%, 1/1/2026 |
|
|
|
|
North
Texas Tollway Authority, First Tier Revenue Refunding Bonds (Series 2023A), 5.000%, 1/1/2027 |
|
|
|
|
Northside,
TX ISD, UT GO School Building Bonds (Series 2020), (Texas Permanent School Fund Guarantee Program GTD),
3.550%,
Mandatory Tender 6/1/2028 |
|
|
|
|
Texas
State Department of Housing & Community Affairs (Palladium Old FM 471 W, Ltd.), Multifamily Housing Revenue
Bonds
(Series 2024), 3.050%, Mandatory Tender 9/1/2027 |
|
|
|
|
Texas
State Transportation Commission (Central Texas Turnpike System), First Tier Revenue Refunding Bonds (Series 2024B),
5.000%,
Mandatory Tender 8/15/2030 |
|
|
|
|
Texas
Water Development Board, State Revolving Fund Revenue Bonds (Series 2023), 5.000%, 8/1/2038 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermountain
Power Agency, Power Supply Revenue Bonds (Series 2023A), 5.000%, 7/1/2038 |
|
|
|
|
Utah
State Housing Corporation (Silos Affordable, LLC), Multifamily Housing Revenue Bonds (Series 2024), (United States
Treasury
GTD), 3.700%, Mandatory Tender 8/1/2027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vermont
EDA (Casella Waste Systems, Inc.), Solid Waste Disposal Revenue Bonds (Series 2022a-2), 4.375%, Mandatory
Tender
6/1/2032 |
|
|
|
|
|
|
|
|
|
Amelia
County, VA IDA (Waste Management, Inc.), Tax-Exempt Adjustable Mode Solid Waste Disposal Revenue Bonds
(Series
2002), 1.450%, 4/1/2027 |
|
|
|
|
Charles
City County, VA IDA (Waste Management, Inc.), Tax-Exempt Adjustable Mode Solid Waste Disposal Revenue Bonds
(Series
2002), 1.450%, 4/1/2027 |
|
|
|
|
Chesapeake,
VA Redevelopment and Housing Authority (Standard Hunter’s Point I Venture LP), Multifamily Housing Revenue
Bonds
(Series 2023), (United States Treasury COL), 5.000%, Mandatory Tender 5/1/2026 |
|
|
|
|
Virginia
Beach, VA Development Authority (Westminster-Canterbury on Chesapeake Bay), Residential Care Facility Revenue
Bonds
TEMPS-70 (Series 2023B-2), 5.750%, 9/1/2030 |
|
|
|
|
Wise
County, VA IDA (Virginia Electric & Power Co.), Solid Waste and Sewage Disposal Revenue Bonds (Series 2010A),
3.800%,
Mandatory Tender 5/28/2027 |
|
|
|
|
|
|
Annual
Financial Statements and Additional Information
|
|
|
|
|
|
|
|
MUNICIPAL
BONDS—continued
|
|
|
|
|
|
|
|
|
|
Energy
Northwest, WA (Bonneville WA Power Administration), Columbia Generating Station Electric Revenue Refunding
Bonds
(Series 2023A), 5.000%, 7/1/2038 |
|
|
|
|
King
County, WA Housing Authority (New Kirkland Heights LLLP), Affordable Housing Revenue Bonds Kirkland Heights
Project
(Series 2023A-2), 5.000%, 1/1/2028 |
|
|
|
|
Washington
State, UT GO Motor Vehicle Fuel and Vehicle Related Fees Refunding Bonds (Series 2023B), 5.000%, 7/1/2027 |
|
|
|
|
Washington
State, UT GO Refunding Bonds (Series 2023A), 5.000%, 8/1/2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
West
Virginia EDA (Appalachian Power Co.), Solid Waste Disposal Facilities Revenue Bonds (Series 2009A), 3.700%,
Mandatory
Tender 6/1/2028 |
|
|
|
|
West
Virginia EDA (Commercial Metals Corp.), Solid Waste Disposal Facilities Revenue Bonds (Series 2025), 4.625%,
Mandatory
Tender 5/15/2032 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Public
Finance Authority (Duke Energy Progress LLC), PCR Refunding Bonds (Series 2022A-1), 3.300%, Mandatory
Tender
10/1/2026 |
|
|
|
|
Wisconsin
Health & Educational Facilities Authority (Advocate Aurora Health), Revenue Bonds (Series 2018B-2), 5.000%,
Mandatory
Tender 6/24/2026 |
|
|
|
|
Wisconsin
Health & Educational Facilities Authority (Forensic Science and Protective Medicine Collaboration, Inc.), Revenue
Bonds
(Series 2024), 5.000%, 8/1/2027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweetwater
County, WY PCRB (Idaho Power Co.), PCR Refunding Bonds (Series 2006), 1.700%, 7/15/2026 |
|
|
|
|
TOTAL
MUNICIPAL BONDS
(IDENTIFIED
COST $344,698,428) |
|
|
|
|
SHORT-TERM
MUNICIPALS—6.2% |
|
|
|
|
|
|
|
|
|
Los
Angeles, CA Community Redevelopment Agency (DWF V Hollywood & Vine, LP), Mizuho 3a-7 (Series 2022-MIZ9089)
Daily
VRDNs, (Federal Home Loan Mortgage Corp. GTD)/(Mizuho Bank Ltd. LIQ), 4.500%, 7/1/2025 |
|
|
|
|
Nuveen
California AMT-Free Quality Municipal Income Fund, (Series A) MuniFund Preferred Shares Weekly VRDPs,
2.370%,
7/1/2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meade
County, KY Industrial Building Revenue Authority (Nucor Corp.), (Series 2020B-1) Daily VRDNs, 4.650%, 7/1/2025 |
|
|
|
|
|
|
|
|
|
Invesco
Municipal Opportunity Trust, PUTTERs 3a-7 (VMTP 5029) Daily VRDNs, (JPMorgan Chase Bank, N.A. LIQ),
4.400%,
7/1/2025 |
|
|
|
|
PIMCO
Flexible Municipal Income Fund, PUTTERs 3a-7 (Series 5046) MuniFund Term Preferred Shares Daily VRDNs,
(JPMorgan
Chase Bank, N.A. LIQ), 4.400%, 7/1/2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
York City, NY Municipal Water Finance Authority, (Series 2022D) Weekly VRENs, 3.900%, 7/1/2025 |
|
|
|
|
Triborough
Bridge & Tunnel Authority, NY (Central Business District Tolling Program), MS 3a-7(Series 2025-MS0041) Weekly
VRDNs,
(Morgan Stanley GTD)/(Morgan Stanley LIQ), 2.320%, 7/3/2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ohio
State Hospital Revenue (University Hospitals Health System, Inc.), (Series 2015-A) VRENs, 2.200%, 7/1/2025
|
|
|
|
|
Ohio
State Hospital Revenue (University Hospitals Health System, Inc.), (Series B) VRENs, 2.200%, 7/1/2025 |
|
|
|
|
|
|
|
|
|
TOTAL
SHORT-TERM MUNICIPALS
(IDENTIFIED
COST $22,800,000) |
|
|
|
|
TOTAL
INVESTMENT IN SECURITIES—99.5%
(IDENTIFIED
COST $367,498,428)3
|
|
|
|
|
OTHER
ASSETS AND LIABILITIES - NET—0.5%4
|
|
|
|
|
|
|
Annual
Financial Statements and Additional Information
Securities that are
subject to the federal alternative minimum tax (AMT) represent 10.8% of the Fund’s portfolio as calculated based upon
total market value (Unaudited).
|
|
Current
rate and current maturity or next reset date shown for floating rate notes and variable rate notes/demand instruments. Certain variable
rate securities are
not
based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These
securities do
not
indicate a reference rate and spread in their description above. |
|
|
Denotes
a restricted security that either: (a) cannot be offered for public sale without first being registered, or availing of an exemption from
registration, under
the
Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At June 30, 2025, these restricted securities
amounted to $3,523,413, which
represented
1.0% of net assets. |
|
|
The
cost of investments for federal tax purposes amounts to $367,411,288. |
|
|
Assets,
other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Note: The categories of investments are
shown as a percentage of net assets at June 30, 2025.
Various inputs are used in determining the
value of the Fund’s investments. These inputs are summarized in the three broad levels listed
below:
Level 1—quoted prices in active markets
for identical securities.
Level 2—other significant observable
inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk,
etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs
(including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing
securities are not an indication of the risk associated with investing in those securities.
As of June 30, 2025, all investments of
the Fund utilized Level 2 inputs in valuing the Fund’s assets carried at fair value.
The
following acronym(s) are used throughout this portfolio: |
|
|
|
|
|
|
—Economic
Development Authority |
|
|
|
|
|
|
|
|
|
|
|
—Health
and Education Facilities Authority |
|
|
—Housing
Finance Authority |
|
|
—Industrial
Development Authority |
|
|
—Industrial
Development Bond |
|
|
|
|
|
—Independent
School District |
|
|
|
|
|
|
|
|
—Pollution
Control Revenue |
|
|
—Pollution
Control Revenue Bond(s) |
|
|
—Puttable
Tax-Exempt Receipts |
|
|
—Securities
Industry and Financial Markets Association |
|
|
—Secured
Overnight Financing Rate |
|
|
—Toll
Equity Loan Agreement |
|
|
—Tax
Exempt Mandatory Paydown Securities |
|
|
|
|
|
—Variable
Municipal Term Preferred |
|
|
—Variable
Rate Demand Notes |
|
|
—Variable
Rate Demand Preferreds |
|
|
—Variable
Rate Extendible Notes |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Financial
Highlights–Class
A Shares
(For a Share Outstanding Throughout Each
Period)
|
|
|
|
|
|
|
|
|
|
Net Asset
Value, Beginning of Period |
|
|
|
|
|
Income
From Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
TOTAL
FROM INVESTMENT OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
from net investment income |
|
|
|
|
|
Net
Asset Value, End of Period |
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
waiver/reimbursement6
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per
share numbers have been calculated using the average shares method. |
|
|
Represents
less than $0.01. |
|
|
Based
on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.
|
|
|
Amount
does not reflect net expenses incurred by investment companies in which the Fund may invest. |
|
|
The
net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.67%, 0.72% and 0.72%
for the years
ended
June 30, 2025, 2024 and 2023, respectively, after taking into account these expense reductions. |
|
|
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. |
|
|
Securities
that mature are considered sales for purposes of this calculation. |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Financial
Highlights–Institutional
Shares
(For a Share Outstanding Throughout Each
Period)
|
|
|
|
|
|
|
|
|
|
Net Asset
Value, Beginning of Period |
|
|
|
|
|
Income
From Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
TOTAL
FROM INVESTMENT OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
from net investment income |
|
|
|
|
|
Net
Asset Value, End of Period |
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
waiver/reimbursement5
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per
share numbers have been calculated using the average shares method. |
|
|
Based
on net asset value. |
|
|
Amount
does not reflect net expenses incurred by investment companies in which the Fund may invest. |
|
|
The
net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.41%, 0.47% and 0.47%
for the years
ended
June 30, 2025, 2024 and 2023, respectively, after taking into account these expense reductions. |
|
|
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. |
|
|
Securities
that mature are considered sales for purposes of this calculation. |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Financial
Highlights–Service
Shares
(For a Share Outstanding Throughout Each
Period)
|
|
|
|
|
|
|
|
|
|
Net Asset
Value, Beginning of Period |
|
|
|
|
|
Income
From Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
TOTAL
FROM INVESTMENT OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
from net investment income |
|
|
|
|
|
Net
Asset Value, End of Period |
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
waiver/reimbursement5
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per
share numbers have been calculated using the average shares method. |
|
|
Based
on net asset value. |
|
|
Amount
does not reflect net expenses incurred by investment companies in which the Fund may invest. |
|
|
The
net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.65%, 0.70% and 0.70%
for the years
ended
June 30, 2025, 2024 and 2023, respectively, after taking into account these expense reductions. |
|
|
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. |
|
|
Securities
that mature are considered sales for purposes of this calculation. |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Statement
of Assets and Liabilities
June 30, 2025
|
|
|
Investment
in securities, at value (identified
cost $367,498,428) |
|
|
|
|
|
|
|
Receivable
for shares sold |
|
|
|
|
|
|
|
Payable
for investments purchased |
|
Payable
for shares redeemed |
|
Income
distribution payable |
|
Payable
for portfolio accounting fees |
|
Payable
for other service fees (Notes 2 and 5)
|
|
Payable
for investment adviser fee (Note 5)
|
|
Payable
for administrative fee (Note 5)
|
|
Accrued
expenses (Note 5) |
|
|
|
|
Net
assets for 36,797,162 shares outstanding |
|
|
|
|
|
|
|
Total
distributable earnings (loss) |
|
|
|
|
Net Asset
Value, Offering Price and Redemption Proceeds Per Share: |
|
|
|
|
Net
asset value per share ($106,960,457 ÷ 10,701,922 shares outstanding), no par value, unlimited shares authorized
|
|
Offering
price per share (100/99.00 of $9.99) |
|
Redemption
proceeds per share |
|
|
|
|
Net
asset value per share ($254,482,107 ÷ 25,457,639 shares outstanding), no par value, unlimited shares authorized
|
|
|
|
|
Redemption
proceeds per share |
|
|
|
|
Net
asset value per share ($6,377,103 ÷ 637,601 shares outstanding), no par value, unlimited shares authorized |
|
|
|
|
Redemption
proceeds per share |
|
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Statement
of Operations
Year Ended June 30,
2025
|
|
|
|
|
|
|
|
|
Investment
adviser fee (Note 5)
|
|
Administrative
fee (Note 5)
|
|
|
|
|
|
|
|
Directors’/Trustees’
fees (Note 5)
|
|
|
|
|
|
|
|
Other
service fees (Notes 2 and 5) |
|
Portfolio
accounting fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
Waiver,
Reimbursement and Reduction: |
|
Waiver
of investment adviser fee (Note 5)
|
|
Reimbursement
of other operating expenses (Notes 2 and 5) |
|
Reduction
of custodian fees (Note 6)
|
|
TOTAL
WAIVER, REIMBURSEMENT AND REDUCTION |
|
|
|
|
|
|
|
Realized
and Unrealized Gain (Loss) on Investments: |
|
Net
realized loss on investments |
|
Net
change in unrealized depreciation of investments |
|
Net
realized and unrealized gain (loss) on investments |
|
Change
in net assets resulting from operations |
|
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Statement
of Changes in Net Assets
|
|
|
|
Increase
(Decrease) in Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
change in unrealized appreciation/depreciation |
|
|
CHANGE
IN NET ASSETS RESULTING FROM OPERATIONS |
|
|
Distributions
to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGE
IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS |
|
|
|
|
|
|
Proceeds
from sale of shares |
|
|
Net
asset value of shares issued to shareholders in payment of distributions declared |
|
|
|
|
|
|
CHANGE
IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On
October 27, 2023, Class A2 Shares were converted to Class A Shares. |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Notes to
Financial Statements
Federated Hermes Short-Intermediate Duration
Municipal 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 one diversified portfolio, Federated Hermes
Short-Intermediate Municipal Fund (the “Fund”). The Fund offers three classes of shares: Class A Shares, Institutional Shares
and Service Shares. All shares of the Fund have equal rights with
respect to voting, except on class-specific matters. The investment objective of
the Fund is to provide dividend income which is exempt from federal regular income tax. The Fund pursues this investment objective by
investing its assets so that normally distributions of annual interest income are exempt from federal regular income tax. Interest from
the Fund’s investments may be subject to (or may be a specific
preference item for purposes of) federal alternative minimum tax (AMT) for
individuals. Distributions may be subject to state and local taxes.
At the close of business
on October 27, 2023, Class A2 Shares were converted into the Fund’s existing Class A Shares pursuant to a Plan
of Conversion approved by the Fund’s Board of Trustees (the “Trustees”). The conversion occurred on a tax-free basis.
The cash value of a shareholder’s investment was not changed
as a result of the share class conversion. No action was required by shareholders to effect
the conversion.
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).
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”).
■
Shares
of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs, or NAV per share
practical expedient, as applicable.
■
Derivative
contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean
of closing bid and ask quotations.
■
Over-the-counter
(OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the
Adviser.
■
For
securities that are fair valued in accordance with procedures established by and under the general supervision of the Adviser, certain
factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer
or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature
and duration of restrictions on disposition, the movement of the
market in which the security is normally traded, public trading in similar securities
or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited
to industry changes and relevant government actions.
If any price, quotation, price evaluation
or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain
price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth
in the Adviser’s valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion
of the Adviser’s valuation committee (“Valuation Committee”),
is deemed not representative of the fair value of such security, the Fund uses the
fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund
could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines
its NAV per share, and the actual value obtained could be materially different.
Fair Valuation Procedures
Pursuant
to Rule 2a-5 under the Act, the Fund’s Trustees have 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.
Annual
Financial Statements and Additional Information
Factors
considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon,
maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers
and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an
investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price
between the prices bid and ask for the investment (a “mid”
evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities,
mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income
securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment,
the fair value of the investment is determined in accordance with procedures adopted by the Adviser.
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. 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. Investment income, realized and unrealized gains
and losses and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select
classes will bear certain expenses unique to those classes. The
detail of the total fund expense waiver, reimbursement and reduction of $886,058
is disclosed in this Note 2, Note 5 and Note 6. Dividends are declared separately for each class. No class has preferential dividend
rights; differences in per share dividend rates are generally due to differences in separate class expenses.
The
Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund’s Class A Shares, Institutional Shares and
Service Shares to financial intermediaries or to Federated Shareholder
Services Company (FSSC) for providing services to shareholders and
maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the
Fund for other service fees. For the year ended June 30, 2025, other service fees for the Fund were as follows:
|
|
Other
Service
Fees
Incurred |
Other
Service
Fees
Reimbursed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 year
ended June 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 June 30, 2025, tax years 2022 through 2025
remain subject to examination by the Fund’s major tax jurisdictions, which include the United States of America and the Commonwealth
of Massachusetts.
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.
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 Securities Act of
1933; 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.
Additional information on restricted securities
held at June 30, 2025, is as follows:
|
|
|
|
|
Vermont
EDA (Casella Waste Systems, Inc.), Solid Waste Disposal Revenue Bonds (Series 2022a-2), 4.375%,
Mandatory
Tender 6/1/2032 |
|
|
|
Annual
Financial Statements and Additional Information
|
|
|
|
|
Wisconsin
Health & Educational Facilities Authority (Forensic Science and Protective Medicine Collaboration, Inc.),
Revenue
Bonds (Series 2024), 5.000%, 8/1/2027 |
|
|
|
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 tables summarize share activity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
issued to shareholders in payment of distributions declared |
|
|
|
|
Conversion
of Class A2 Shares to Class A Shares1
|
|
|
|
|
|
|
|
|
|
|
NET
CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
issued to shareholders in payment of distributions declared |
|
|
|
|
Conversion
of Class A2 Shares to Class A Shares1
|
|
|
|
|
NET
CHANGE RESULTING FROM CLASS A2 SHARE TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
issued to shareholders in payment of distributions declared |
|
|
|
|
|
|
|
|
|
|
NET
CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
issued to shareholders in payment of distributions declared |
|
|
|
|
|
|
|
|
|
|
NET
CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS |
|
|
|
|
NET
CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS |
|
|
|
|
|
|
On
October 27, 2023, Class A2 Shares were converted to Class A Shares. Within the Statement of Changes in Net Assets, the conversion from
Class A2 Shares is
within
the Cost of shares redeemed and the conversion to Class A Shares is within Proceeds from sale of shares. |
4. FEDERAL
TAX INFORMATION
The tax character of distributions as reported
on the Statement of Changes in Net Assets for the years ended June 30, 2025 and 2024,
was as follows:
Annual
Financial Statements and Additional Information
As of June 30, 2025,
the components of distributable earnings on a tax-basis were as follows:
Undistributed
tax-exempt income |
|
Net
unrealized depreciation |
|
Capital
loss carryforwards |
|
|
|
|
At June 30, 2025, the cost of investments
for federal tax purposes was $367,411,288. The net unrealized depreciation of investments for federal
tax purposes was $1,373,920. This consists of unrealized appreciation from investments for those securities having an excess of value
over cost of $2,279,123 and unrealized depreciation from investments for those securities having an excess of cost over value of $3,653,043.
The difference between book-basis and tax-basis net unrealized depreciation is attributable to differing treatments for discount
accretion/premium amortization on debt securities.
As of June 30, 2025,
the Fund had a capital loss carryforward of $41,978,738 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:
5. INVESTMENT
ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The
advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.39% of the Fund’s average daily net assets.
Under the investment advisory contract, which is subject to annual review by the Trustees, the Adviser will reimburse the amount, limited
to the amount of the advisory fee, by which the Fund’s Institutional Shares aggregate annual operating expenses, including the investment
advisory fee, but excluding interest, taxes, brokerage commissions, expenses of registering and qualifying the Fund and its shares
under federal and state laws and regulations, expenses of withholding taxes and extraordinary expenses, exceed 0.45% of the Fund’s
Institutional Shares average daily net assets. To comply with the 0.45% limitation imposed under the investment advisory contract, the
Adviser may waive its advisory fee and/or reimburse its advisory fee or other Fund expenses, affiliates of the Adviser may waive, reimburse
or reduce amounts otherwise included in the aggregate annual operating expenses of the Fund, or there may be a combination
of waivers, reimbursements and/or reductions by the Adviser and its affiliates. The amount that the Adviser waives/reimburses
under the investment advisory contract will be reduced to the extent that affiliates of the Adviser waive, reimburse or reduce amounts
that would otherwise be included in the aggregate annual operating expenses of the Fund. In addition, subject to the terms described
in the Expense Limitation note, the Adviser may also voluntarily choose to waive any portion of its fee. For the year ended June
30, 2025, the Adviser waived $707,030 of its fee.
Federated
Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and
services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated
Hermes Funds subject to a fee under the Administrative Services
Agreement. The fee paid to FAS is based on the average daily net assets
of the Investment Complex as specified below:
|
|
Average
Daily Net Assets
of
the Investment Complex |
|
|
on
assets up to $50 billion |
|
|
on
assets over $50 billion |
Subject to the terms described in the Expense
Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the year ended
June 30, 2025, the annualized fee paid to FAS was 0.078% of average daily net assets of the Fund.
In addition, FAS may charge certain out-of-pocket
expenses to the Fund.
Distribution Services Fee
The
Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund
will compensate Federated Securities Corp. (FSC), the principal
distributor, from the daily net assets of the Fund’s Class A Shares to finance activities
intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at the following percentages
of average daily net assets annually, to compensate FSC:
|
|
Percentage
of Average Daily
Net
Assets of Class |
|
|
|
Subject to the terms described in the Expense
Limitation note, FSC may voluntarily choose to waive any portion of its fee.
Annual
Financial Statements and Additional Information
When
FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares.
For the year ended June
30, 2025, the Fund’s Class A Shares did not incur a distribution services fee; however, it may begin to incur this
fee upon approval of the Trustees.
For
the year ended June 30, 2025, FSSC received $1,170 and reimbursed $174,773 of other service fees disclosed in Note 2.
In
addition to the contractual fee waiver described under “Investment Adviser Fee” above with regards to the Fund’s Institutional
Shares, the Adviser and certain of its affiliates (which may include
FSC, FAS and FSSC) on their own initiative have agreed to waive certain amounts
of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding
interest expense, extraordinary expenses and proxy-related expenses, if any) paid by the Fund’s Class A Shares, Institutional Shares
and Service Shares (after the voluntary waivers and reimbursements) will not exceed 0.65%, 0.40% and 0.65% (the “Fee Limit”),
respectively, up to but not including the later of (the “Termination
Date”): (a) September 1, 2026; or (b) the date of the Fund’s next effective
Prospectus. Prior to September 1, 2024, the Fee Limit for the Class A Shares, Institutional Shares, Service Shares were 0.72%, 0.47%
and 0.72%, respectively. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements
prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination
Date with the approval of the Trustees.
During
the year ended June 30, 2025, the Fund engaged in purchase and sale transactions with funds that have a common investment adviser
(or affiliated investment advisers), common Trustees and/or common Officers. These purchase and sale transactions complied with
Rule 17a-7 under the Act and amounted to $28,800,000 and $54,400,000 respectively. Net realized gain (loss) recognized on these transactions
was $0.
Directors’/Trustees’ and Miscellaneous Fees
Certain
Officers and Directors 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 the Accrued and
Miscellaneous Expenses on the Statement of Assets and Liabilities and the Statement of Operations, respectively.
Through arrangements with the Fund’s
custodian, net credits realized as a result of uninvested cash balances were used to offset custody expenses.
For the year ended June 30, 2025, the Fund’s expenses were offset by $4,255 under these arrangements.
7. INVESTMENT
TRANSACTIONS
Purchases and sales of investments, excluding
long-term U.S. government securities and short-term obligations, for the year ended June
30, 2025, were as follows:
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 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 June 30, 2025, the Fund had no outstanding
loans. During the year ended June 30, 2025, the Fund did not utilize the LOC.
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 June 30, 2025, there were no outstanding loans. During
the year ended June 30, 2025, the program was not utilized.
Annual
Financial Statements and Additional Information
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
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.
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.
12. FEDERAL
TAX INFORMATION (UNAUDITED)
For the fiscal year ended June 30, 2025,
100% of distributions from net investment income is exempt from federal income tax, other than
the federal AMT.
Annual
Financial Statements and Additional Information
Report of
Independent Registered Public Accounting Firm
TO THE SHAREHOLDERS AND BOARD
OF TRUSTEES OF FEDERATED HERMES SHORT-INTERMEDIATE MUNICIPAL
FUND:
Opinion on the Financial Statements
We have audited the accompanying
statement of assets and liabilities of Federated Hermes Short-Intermediate Duration Municipal
Trust (the “Trust”) (comprising Federated Hermes Short-Intermediate Municipal Fund (the “Fund”)), including the
portfolio of investments, as of June 30, 2025, and the related statement of operations for the year then ended, the statement
of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the
five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our
opinion, the financial statements present fairly, in
all material respects, the financial position of the Fund comprising Federated
Hermes Short-Intermediate Duration Municipal Trust, at June 30, 2025, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each
of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
These financial statements are
the responsibility of the Trust’s management. Our responsibility is to express an opinion on the
Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance
with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.
We conducted our audits in accordance
with the standards of the PCAOB. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether
due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal
control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control
over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal
control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing
procedures to assess the risks of material misstatement of the financial statements, whether due
to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation
of securities owned as of June 30, 2025, by correspondence with the custodian, brokers, and others; when replies
were not received from brokers or others, we performed other auditing procedures. Our audits also included evaluating
the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation
of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor
of one or more Federated Hermes investment companies since 1979.
Boston, Massachusetts
August 25, 2025
Annual
Financial Statements and Additional Information
Evaluation
and Approval of Advisory Contract–May
2025
Federated Hermes Short-Intermediate
Municipal Fund (the “Fund”)
At its meetings in May 2025 (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, as amended (the
“Independent Trustees”), reviewed and unanimously approved the continuation of the investment advisory contract between
the Fund and Federated Investment Management Company (the “Adviser”) (the “Contract”) for an additional one-year
term. The Board’s determination to approve the continuation of the Contract reflects the exercise of its business judgment
after considering such information deemed necessary to evaluate the terms of the Contract and to approve the continuation
of the existing arrangement. The information, factors and conclusions that formed the basis for the Board’s approval
are summarized below.
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 report regarding data related to the Fund’s management fee (the
“CCO Management Fee Report”). The Board considered the CCO Management Fee Report, along with other information,
in evaluating the reasonableness of the Fund’s management fee and in determining to approve the continuation
of the Contract.
In addition
to the CCO Management Fee Report, the Board considered information specifically prepared in connection with
the approval of the continuation of the Contract 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
Adviser and its 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 Contract, which included detailed information about the Fund and Federated Hermes furnished to the
Board at its meetings throughout the year.
The Board’s
consideration of the Contract included review of materials and information covering the following matters, among
others: (1) copies of the Contract; (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 Adviser’s investment philosophy, personnel
and processes; (5) the Fund’s investment objective 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 to 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 Contract. Using these judicial decisions as a guide, the Board considered several factors it
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 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 Contract 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”).
Annual
Financial Statements and Additional Information
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 Contract. 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 Contract, 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 Contract was based on a comprehensive consideration of all information provided
to the Board throughout the year. The Board recognized that its evaluation process is evolutionary and that the factors
considered and the 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 Contract 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 Adviser and the resources
of Federated Hermes dedicated to the Fund. In this regard, the Board evaluated, among other things, the terms of the
Contract and the full range of services provided to the Fund by Federated Hermes. The Board considered the Adviser’s 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 Adviser, including the execution of portfolio transactions and the selection of
brokers for those transactions. The Board also considered the Adviser’s ability to deliver competitive investment performance
for the Fund when compared to the Fund’s Performance Peer Group (as defined below).
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 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 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, as amended,
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.
Annual
Financial Statements and Additional Information
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 Adviser 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 Adviser’s 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. These reports included,
among other items, information on the Fund’s gross and net returns, the Fund’s investment performance compared
to one or more relevant categories or groups of peer funds and the Fund’s benchmark, performance attribution information
and commentary on the effect of market conditions. The Board noted that it evaluated investment performance at
meetings throughout the year and received reports from Federated Hermes regarding the performance of certain Federated
Hermes Funds as well as Federated Hermes’ explanations for less favorable performance and any specific actions
Federated Hermes had taken, or had determined to take, to seek to enhance Fund investment performance and the results
of those actions.
The Board
also reviewed comparative information regarding the performance of other registered funds in the category of
peer funds selected by Morningstar, Inc. (“Morningstar”), an independent fund ranking organization (the “Performance
Peer Group”). The Board noted the CCO’s
statement that comparisons to fund peer groups may be helpful, though not conclusive,
in evaluating the performance of the Adviser in managing the Fund.
The Board
also considered comparative performance data from Lipper, Inc. that was included in reports provided to the Board
throughout the year. The Board noted that differences may exist between the Performance Peer Group and Lipper peers
and that the results of these performance comparisons may vary.
For the
periods ended December 31, 2024, the Fund’s performance fell below the Performance Peer Group median for the
five-year period, and was above the Performance Peer Group median for the one-year and three-year periods. The Board
discussed the Fund’s performance with the Adviser and recognized the efforts being taken by the Adviser 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 Adviser’s overall capabilities
to manage the Fund.
The Board
considered the advisory fee and overall expense structure of the Fund and the comparative fee and expense information
that had been provided in connection with the May Meetings. In this regard, the Board was presented with, and
considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each
element of the Fund’s total expense ratio (i.e., gross and net advisory fees, administrative fees, custody fees, portfolio accounting
fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated Hermes from
the overall category of peer funds selected by Morningstar (the “Expense Peer Group”). The Board received a description
of the methodology used to select the Expense Peer Group from the overall Morningstar category. The Board also
reviewed comparative information regarding the fees and expenses of the broader group of funds in the overall Morningstar
category.
While mindful
that courts have cautioned against giving too much weight to comparative information concerning fees charged
to funds by other advisers, the use of comparisons between the Fund and its Expense Peer Group assisted the Board
in its evaluation of the Fund’s fees and expenses. The Board focused on comparisons with other registered funds more
heavily than non-registered fund products or services because such comparisons are believed to be more relevant. The
Board considered that other registered funds are the products most like the Fund, in that they are readily available to Fund
shareholders as alternative investment vehicles, and they are the type of investment vehicle, in fact, chosen and maintained
by the Fund’s shareholders. The Board noted that the range of such other registered funds’ fees and expenses, therefore,
appears to be a relevant indicator of what investors have found to be reasonable in the marketplace in which the Fund
competes.
Annual
Financial Statements and Additional Information
The
Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position
of the Fund’s fee rates relative to its Expense Peer Group. In this regard, the Board noted that the contractual advisory
fee rate was above the median of the Expense Peer Group, but the Board noted the applicable waivers and reimbursements,
and that the overall expense structure of the Fund remained competitive in the context of other factors considered
by the Board. The Board considered the fact that the Adviser committed to permanently reduce fees of the Fund
by 1 basis point, such reduction to be effective September 1, 2023.
The Board
also received and considered information about the nature and extent of services offered and fees charged by Federated
Hermes to other types of clients with investment strategies similar to those of the Federated Hermes Funds, including
non-registered fund clients (such as institutional separate accounts) and third-party unaffiliated registered funds for
which the Adviser or its affiliates serve as sub-adviser. The Board noted the CCO’s statement that non-registered fund clients
are inherently different products due to the following differences, among others: (i) types of targeted investors; (ii)
applicable laws and regulations; (iii) legal structures; (iv) average account sizes; (v) portfolio management techniques made
necessary by different cash flows and different associated costs; (vi) the time spent by portfolio managers and their teams
(among other personnel across various departments, including legal, compliance and risk management) in reviewing securities
pricing; (vii) SEC mandated risk management programs with respect to fund liquidity and use of derivatives; (viii)
questions on regulatory reporting; (ix) a variety of different administrative responsibilities; and (x) degrees of risk associated
with management. The Board also considered information regarding the differences in the nature of the services required
for Federated Hermes to manage its proprietary registered fund business versus managing a discrete pool of assets as
a sub-adviser to another institution’s registered fund, noting the CCO’s statement that Federated Hermes generally performs
significant additional services and assumes substantially greater risks in managing the Fund and other Federated Hermes
Funds than in its role as sub-adviser to an unaffiliated third-party registered fund. The Board noted that the CCO emphasized
that differences in fees for providing advisory services to other types of clients may not be appropriate when judging
the appropriateness of the Federated Hermes Funds’ advisory fees because of the different services provided.
In the case
of the Fund, the Board noted that Federated Hermes does not manage any other types of clients that are comparable
to the Fund.
Based on
these considerations, the Board concluded that the fees and total operating expenses of the Fund, in conjunction
with other matters considered, are reasonable in light of the services provided.
The Board
received and considered profitability information furnished by Federated Hermes. Such profitability information
included revenues reported on a fund-by-fund basis and estimates of the allocation of expenses made on a fund-by-fund
basis, using allocation methodologies specified by the CCO and described to the Board. The Board considered
the CCO’s statement that, while the cost allocation report applies consistent allocation processes for purposes of
general comparison of funds, the inherent difficulties in arbitrarily allocating costs lacks precision and can cause the report
to be unreliable because a single change in an allocation estimate can dramatically alter the resulting estimate of cost
and/or profitability of a Federated Hermes Fund and may produce unintended consequences. In addition, the Board considered
the CCO’s statement that the allocation methodologies used by Federated Hermes in estimating profitability for purposes
of reporting to the Board in connection with the continuation of the Contract are consistent with the methodologies
previously reviewed by an independent consultant. The Board noted that the independent consultant had previously
conducted a review of the allocation methodologies and reported to the Board that, although there is no single best
method to allocate expenses, the methodologies used by Federated Hermes are reasonable. The Board considered the CCO’s
statement that the estimated profitability to the Adviser from its relationship with the Fund was not unreasonable in relation
to the services provided.
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 recognized
that profitability comparisons among fund management companies are difficult because of the variation in the type
of comparative information that is publicly available, and the profitability of any fund management company is affected
by numerous factors. The Board considered the CCO’s statement that, based on such profitability information, Federated
Hermes’ profit margins did not appear to be excessive and that Federated Hermes appeared financially sound, with
the resources available to fulfill its contractual obligations.
The Board
received and considered information about the notion of possible realization of “economies of scale” as a fund
grows larger, the difficulties of isolating and quantifying economies of scale at an individual fund level, and the extent
to which potential scale benefits are shared with shareholders. In this regard, the Board considered that Federated Hermes
has made significant and long-term investments in areas that support all of the Federated Hermes Funds, such as: portfolio
management, investment research and trading operations; shareholder services; compliance; business continuity, cybersecurity
and information security programs; internal audit and risk management functions; and technology, systems
Annual
Financial Statements and Additional Information
capabilities
and use of data. The Board noted that Federated Hermes’ investments in these areas are extensive and are designed
to provide enhanced or expanded services to the Federated Hermes Funds and their shareholders. The Board considered
that the benefits of these investments are likely to be shared with the family of Federated Hermes Funds as a whole.
In addition, the Board considered that fee waivers and expense reimbursements are another means for potential economies
of scale to be shared with shareholders and can provide protection from an increase in expenses if a Federated Hermes
Fund’s assets decline. The Board considered that, in order for the Federated Hermes Funds to remain competitive in
the marketplace, Federated Hermes has frequently waived fees and/or reimbursed expenses for the Federated Hermes Funds
and has disclosed to shareholders and/or reported to the Board its intention to do so (or continue to do so) in the future.
The Board also considered that Federated Hermes has been active in managing expenses of the Federated Hermes Funds
in recent years, which has resulted in benefits being realized by shareholders.
The Board
also received and considered information on adviser-paid fees (commonly referred to as “revenue sharing” payments)
that was provided to the Board throughout the year and in connection with the May Meetings. The Board considered
that Federated Hermes believes that this information is relevant to consider whether Federated Hermes had an incentive
to either not apply breakpoints, or to apply breakpoints at higher levels, but should not be considered when evaluating
the reasonableness of advisory fees. The Board also noted the absence of any applicable regulatory or industry guidelines
on economies of scale, which is compounded by the lack of any uniform methodology or pattern with respect to structuring
fund advisory fees with breakpoints that serve to reduce the fees as a fund attains a certain size.
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 considered that Federated Hermes may
derive a benefit to its reputation as an adviser to the Fund, which may help in attracting other clients and investment personnel.
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 service contracts, including 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 the benefits, if any,
that Federated Hermes may derive from its receipt of research services from brokers who execute portfolio trades for the
Federated Hermes Funds.
The Board
considered the CCO’s presentation and statements and the information accompanying the CCO Management Fee
Report. The Board recognized that its 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.
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 Contract. The Board based its determination to approve the Contract 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.
Annual
Financial Statements and Additional Information
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 Prospectus,
which contains facts concerning its objective and policies, management fees, expenses and other information.
Federated Hermes Short-Intermediate Municipal
Fund
Federated Hermes Funds
4000
Ericsson Drive
Warrendale, PA 15086-7561
Contact us at
FederatedHermes.com/us
or
call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 313907305
CUSIP
313907107
CUSIP 313907206
©
2025 Federated Hermes, Inc.
|
Item 8. |
Changes in and Disagreements with Accountants for Open-End Management Investment Companies |
Federated Hermes Short-Intermediate Municipal Fund: Not Applicable.
|
Item 9. |
Proxy Disclosures for Open-End Management Investment Companies. |
Federated Hermes Short-Intermediate Municipal Fund: Not Applicable.
|
Item 10. |
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. |
Federated Hermes Short-Intermediate Municipal Fund: The Fund’s
disclosure of remuneration items is included as part of the Financial Statements filed under Item 7 of this form.
|
Item 11. |
Statement Regarding Basis for Approval of Investment Advisory Contract. |
Federated Hermes Short-Intermediate Municipal Fund: The Fund’s
Evaluation and Approval of Advisory Contract summary by fund appear in the Financial Statements filed under Item 7 of this form.
|
Item 12. |
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
|
Item 13. |
Portfolio Managers of Closed-End Management Investment Companies. |
Not Applicable
|
Item 14. |
Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not Applicable
|
Item 15. |
Submission of Matters to a Vote of Security Holders. |
No Changes to Report
|
Item 16. |
Controls and Procedures. |
(a) The registrant’s Principal Executive Officer and
Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2)
under the Act, based on their evaluation of these disclosure controls and procedures as of a date within 90 days of the filing date of
this report on Form N-CSR.
(b) There were no changes in the registrant’s internal
control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the period covered by this report that have materially
affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
|
Item 17. |
Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not Applicable
|
Item 18. |
Recovery of Erroneously Awarded Compensation |
(a) Not Applicable
(b) Not Applicable
(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
Short-Intermediate
Duration
Municipal
Trust
By:
/s/
Jeremy
D.
Boughton
Jeremy
D.
Boughton,
Principal
Financial
Officer
Date:
August
25,
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:
August
25,
2025
By:
/s/
Jeremy
D.
Boughton
Jeremy
D.
Boughton,
Principal
Financial
Officer
Date:
August
25,
2025
