N-Q 1 form.htm

United States

Securities and Exchange Commission

Washington, D.C. 20549

 

Form N-Q

Quarterly Schedule of Portfolio Holdings of Registered Management Investment Companies

 

 

 

 

811-4577

 

(Investment Company Act File Number)

 

 

Federated Income Securities Trust

 

___________________________________________

 

(Exact Name of Registrant as Specified in Charter)

 

 

 

Federated Investors Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

(Address of Principal Executive Offices)

 

 

(412) 288-1900

(Registrant's Telephone Number)

 

 

Peter J. Germain, Esquire

Federated Investors Tower

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15222-3779

(Name and Address of Agent for Service)

(Notices should be sent to the Agent for Service)

 

 

 

 

 

 

Date of Fiscal Year End: 03/31/2019

 

 

Date of Reporting Period: Quarter ended 06/30/2018

 

 

 

 

 

 

 

Item 1.Schedule of Investments

 

 

 

 

 

 

 

 

 

 

 

 

Federated Floating Rate Strategic Income Fund
Portfolio of Investments
June 30, 2018 (unaudited)
Principal
Amount
or Shares 		    Value
  1 ADJUSTABLE RATE MORTGAGES—0.1%  
    Federal Home Loan Mortgage Corporation ARM—0.1%  
$106,457   FHLMC ARM 781523, 3.999%, 5/01/2034 $111,909
115,785   FHLMC ARM 1H2662, 3.806%, 5/01/2036 120,368
186,389   FHLMC ARM 848194, 3.669%, 8/01/2035 194,789
122,946   FHLMC ARM 848746, 3.869%, 7/01/2034 128,581
    TOTAL 555,647
    Federal National Mortgage Association ARM—0.0%  
50,606   FNMA ARM 745059, 3.509%, 9/01/2035 51,775
69,941   FNMA ARM 881959, 3.460%, 2/01/2036 71,640
51,854   FNMA ARM 810320, 3.744%, 4/01/2034 54,823
    TOTAL 178,238
    TOTAL ADJUSTABLE RATE MORTGAGES
(IDENTIFIED COST $742,588) 		733,885
    CORPORATE BONDS—28.7%  
    Aerospace/Defense—0.4%  
3,805,000   Engility Corp., Sr. Unsecd. Note, 8.875%, 9/1/2024 3,990,494
    Automotive—2.3%  
3,000,000 1 American Honda Finance Corp., Sr. Unsecd. Note, Series MTN, 2.695%, (3-month USLIBOR +0.340%), 2/14/2020 3,007,058
2,000,000 1 Daimler Finance NA LLC, Sr. Unsecd. Note, Series 144A, 2.893%, (3-month USLIBOR +0.530%), 5/5/2020 2,008,305
3,000,000 1 Daimler Finance NA LLC, Sr. Unsecd. Note, Series 144A, 2.955%, (3-month USLIBOR +0.630%), 1/6/2020 3,014,312
3,000,000 1 Daimler Finance NA LLC, Sr. Unsecd. Note, Series 144A, 3.203%, (3-month USLIBOR +0.840%), 5/4/2023 3,010,959
3,000,000 1 Ford Motor Credit Co. LLC, Sr. Unsecd. Note, 2.793%, (3-month USLIBOR +0.430%), 11/2/2020 2,989,531
2,000,000 1 Ford Motor Credit Co. LLC, Sr. Unsecd. Note, 3.331%, (3-month USLIBOR +1.000%), 1/9/2020 2,014,630
2,145,000 1 Ford Motor Credit Co. LLC, Sr. Unsecd. Note, 3.606%, (3-month USLIBOR +1.270%), 3/28/2022 2,170,250
2,000,000 1 Nissan Motor Acceptance Corp., Sr. Unsecd. Note, Series 144A, 2.861%, (3-month USLIBOR +0.520%), 3/15/2021 2,004,067
2,400,000 1 Nissan Motor Acceptance Corp., Sr. Unsecd. Note, Series 144A, 3.026%, (3-month USLIBOR +0.690%), 9/28/2022 2,404,400
2,000,000 1 Toyota Motor Credit Corp., Sr. Unsecd. Note, Series MTN, 3.027%, (3-month USLIBOR +0.690%), 1/11/2022 2,025,729
    TOTAL 24,649,241
    Cable Satellite—1.0%  
2,000,000   Altice US Finance I Corp., Series 144A, 5.375%, 7/15/2023 1,995,000
2,000,000   CCO Holdings LLC/Cap Corp., Sr. Unsecd. Note, Series 144A, 4.00%, 3/1/2023 1,885,000
2,000,000   Cablevision Systems Corp., Sr. Unsecd. Note, 5.875%, 9/15/2022 1,990,000
5,000,000   Virgin Media, Inc., Sr. Unsecd. Note, Series 144A, 6.00%, 10/15/2024 4,775,250
    TOTAL 10,645,250
    Chemicals—0.5%  
2,000,000   Alpha 3 BV, Sr. Unsecd. Note, Series 144A, 6.25%, 2/1/2025 1,975,000
3,000,000   Platform Specialty Products Corp., Sr. Unsecd. Note, Series 144A, 6.50%, 2/1/2022 3,060,000
    TOTAL 5,035,000
    Consumer Cyclical Services—0.2%  
2,550,000   GW Honos Security Corp., Sr. Unsecd. Note, Series 144A, 8.75%, 5/15/2025 2,613,750
    Consumer Products—0.3%  
3,200,000   Prestige Brands, Inc., Sr. Unsecd. Note, Series 144A, 6.375%, 3/1/2024 3,184,000
    Environmental—0.2%  
600,000   Tervita Escrow Corp., Series 144A, 7.625%, 12/1/2021 615,000
1,025,000   Tervita Escrow Corp., Series 144A, 7.625%, 12/1/2021 1,050,625
    TOTAL 1,665,625
1
Principal
Amount
or Shares 		    Value
    CORPORATE BONDS—continued  
    Finance Companies—1.8%  
$600,000   AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, 4.625%, 10/30/2020 $611,933
3,000,000   AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, Sr. Unsecd. Note, 4.625%, 7/1/2022 3,061,166
3,000,000 1 American Express Co., 2.969%, (3-month USLIBOR +0.650%), 2/27/2023 2,995,957
2,000,000 1 American Express Co., Sr. Unsecd. Note, 2.968%, (3-month USLIBOR +0.610%), 8/1/2022 2,002,349
3,000,000 1 American Express Credit Corp., Sr. Unsecd. Note, Series MTN, 3.021%, (3-month USLIBOR +0.700%), 3/3/2022 3,020,685
1,475,000   Avolon Holdings Ltd., Sr. Unsecd. Note, Series 144A, 5.50%, 1/15/2023 1,475,000
4,000,000   Navient Corp., Sr. Unsecd. Note, 5.50%, 1/25/2023 3,945,000
2,250,000   Park Aerospace Holdings Ltd., Sr. Unsecd. Note, Series 144A, 5.25%, 8/15/2022 2,235,960
    TOTAL 19,348,050
    Financial Institutions—6.3%  
2,000,000 1 BB&T Corp., Sr. Unsecd. Note, Series MTN, 2.987%, (3-month USLIBOR +0.650%), 4/1/2022 2,013,872
3,000,000 1 Bank of America Corp., Sr. Unsecd. Note, 3.359%, (3-month USLIBOR +1.000%), 4/24/2023 3,033,210
3,000,000 1 Bank of America Corp., Sr. Unsecd. Note, Series FRN, 2.742%, (3-month USLIBOR +0.380%), 1/23/2022 2,982,638
2,000,000 1 Bank of America Corp., Sr. Unsecd. Note, Series MTN, 3.519%, (3-month USLIBOR +1.160%), 1/20/2023 2,032,725
2,000,000 1 Branch Banking & Trust Co., Sr. Unsecd. Note, 2.798%, (3-month USLIBOR +0.450%), 1/15/2020 2,008,272
2,310,000 1 Capital One NA, Sr. Unsecd. Note, Series BKNT, 3.509%, (3-month USLIBOR +1.150%), 1/30/2023 2,329,522
2,000,000 1 Citibank NA, Sr. Unsecd. Note, Series BKNT, 2.680%, (3-month USLIBOR +0.320%), 5/1/2020 2,001,943
2,000,000 1 Citigroup, Inc., Sr. Unsecd. Note, 3.730%, (3-month USLIBOR +1.430%), 9/1/2023 2,042,317
2,120,000 1 Citizens Bank NA, Sr. Unsecd. Note, 2.861%, (3-month USLIBOR +0.540%), 3/2/2020 2,124,875
1,670,000 1 Compass Bank, Birmingham, Sr. Unsecd. Note, 3.057%, (3-month USLIBOR +0.730%), 6/11/2021 1,669,986
3,000,000 1 Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.08%, (3-month USLIBOR +0.750%), 2/23/2023 2,990,671
3,000,000 1 Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.368%, (3-month USLIBOR +1.050%), 6/5/2023 3,022,185
2,920,000 1 Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.472%, (3-month USLIBOR +1.110%), 4/26/2022 2,949,812
2,000,000 1 JPMorgan Chase & Co., Sr. Unsecd. Note, 3.083%, (3-month USLIBOR +0.730%), 4/23/2024 1,991,234
2,000,000 1 JPMorgan Chase & Co., Sr. Unsecd. Note, 3.260%, (3-month USLIBOR +0.900%), 4/25/2023 2,018,414
2,000,000 1 JPMorgan Chase & Co., Sr. Unsecd. Note, 3.348%, (3-month USLIBOR +1.000%), 1/15/2023 2,024,159
2,000,000 1 Manufacturers & Traders Trust Co., Sr. Unsecd. Note, Series BKNT, 2.630%, (3-month USLIBOR +0.270%), 1/25/2021 1,999,650
2,000,000 1 Manufacturers & Traders Trust Co., Sr. Unsecd. Note, Series BKNT, 2.936%, (3-month USLIBOR +0.610%), 5/18/2022 2,018,698
3,900,000 1 Manufacturers & Traders Trust Co., Sub. Note, Series BKNT, 2.940%, (3-month USLIBOR +0.640%), 12/1/2021 3,890,647
1,000,000 1 Morgan Stanley, Sr. Unsecd. Note, 3.292%, (3-month USLIBOR +0.930%), 7/22/2022 1,008,493
2,000,000 1 Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 2.903%, (3-month USLIBOR +0.550%), 2/10/2021 2,004,388
3,000,000 1 Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 3.583%, (3-month USLIBOR +1.220%), 5/8/2024 3,032,020
2,000,000 1 Morgan Stanley, Sr. Unsecd. Note, Series MTN, 3.759%, (3-month USLIBOR +1.400%), 10/24/2023 2,046,988
3,000,000 1 Regions Bank, Alabama, Sr. Unsecd. Note, Series BKNT, 2.717%, (3-month USLIBOR +0.380%), 4/1/2021 2,997,510
2,500,000 1 U.S. Bank N.A., Cincinnati, Sr. Unsecd. Note, Series BKNT, 2.502%, (3-month USLIBOR +0.140%), 10/23/2020 2,495,107
3,000,000 1 U.S. Bank N.A., Cincinnati, Sr. Unsecd. Note, Series BKNT, 2.682%, (3-month USLIBOR +0.320%), 4/26/2021 3,003,197
2,000,000 1 Wells Fargo & Co., Sr. Unsecd. Note, 3.286%, (3-month USLIBOR +0.930%), 2/11/2022 2,021,230
2,000,000 1 Wells Fargo & Co., Sr. Unsecd. Note, 3.469%, (3-month USLIBOR +1.110%), 1/24/2023 2,031,235
2,000,000 1 Wells Fargo & Co., Sr. Unsecd. Note, 3.589%, (3-month USLIBOR +1.230%), 10/31/2023 2,041,723
    TOTAL 67,826,721
    Food & Beverage—1.1%  
1,130,000 1 Anheuser-Busch InBev Worldwide, Inc., Sr. Unsecd. Note, Series 5FRN, 3.052%, (3-month USLIBOR +0.740%), 1/12/2024 1,140,886
2,000,000   B&G Foods, Inc., Sr. Note, 4.625%, 6/1/2021 1,975,000
830,000 1 General Mills, Inc., Sr. Unsecd. Note, 3.363%, (3-month USLIBOR +1.010%), 10/17/2023 837,645
3,000,000 1 Kraft Heinz Foods Co., Sr. Unsecd. Note, 3.173%, (3-month USLIBOR +0.820%), 8/10/2022 3,011,812
3,000,000 1 PepsiCo, Inc., Sr. Unsecd. Note, 2.728%, (3-month USLIBOR +0.365%), 5/2/2022 3,019,808
1,360,000 1 Tyson Foods, Inc., Sr. Unsecd. Note, 2.781%, (3-month USLIBOR +0.450%), 8/21/2020 1,360,413
    TOTAL 11,345,564
2
Principal
Amount
or Shares 		    Value
    CORPORATE BONDS—continued  
    Gaming—0.4%  
$4,775,000   Rivers Pittsburgh LP, Series 144A, 6.125%, 8/15/2021 $4,739,187
    Health Care—3.0%  
2,000,000   Acadia Healthcare Co., Inc., Sr. Unsecd. Note, 5.125%, 7/1/2022 2,005,000
3,000,000   Air Medical Group Holdings, Inc., Sr. Unsecd. Note, Series 144A, 6.375%, 5/15/2023 2,805,000
2,000,000   Amsurg Corp., Sr. Unsecd. Note, 5.625%, 7/15/2022 2,043,750
1,000,000   Avantor, Inc., Series 144A, 6.00%, 10/1/2024 991,700
3,000,000 1 Becton Dickinson & Co., Sr. Unsecd. Note, 3.344%, (3-month USLIBOR +1.030%), 6/6/2022 3,011,497
1,000,000   Envision Healthcare Holdings, Inc., Series 144A, 5.125%, 7/1/2022 1,013,750
5,650,000   Ortho-Clinical Diagnostics, Inc., Series 144A, 6.625%, 5/15/2022 5,551,125
3,625,000   Polaris Intermediate Corp., Sr. Unsecd. Note, Series 144A, 8.50%, 12/1/2022 3,751,875
4,900,000   SteriGenics Nordion Topc, Sr. Unsecd. Note, Series 144A, 8.125%, 11/1/2021 4,924,500
2,000,000   Tenet Healthcare Corp., 8.125%, 4/1/2022 2,095,000
1,000,000   Tenet Healthcare Corp., Sr. Unsecd. Note, 5.50%, 3/1/2019 1,015,000
3,000,000   Tenet Healthcare Corp., Sr. Unsecd. Note, 6.75%, 6/15/2023 2,996,250
    TOTAL 32,204,447
    Independent Energy—2.2%  
2,000,000   Antero Resources Corp., Sr. Unsecd. Note, 5.625%, 6/1/2023 2,035,000
750,000 1 BP Capital Markets PLC, Sr. Unsecd. Note, 2.976%, (3-month USLIBOR +0.650%), 9/19/2022 758,858
2,000,000   Carrizo Oil & Gas, Inc., 6.25%, 4/15/2023 2,035,000
2,000,000 1 Chevron Corp., Sr. Unsecd. Note, 2.801%, (3-month USLIBOR +0.480%), 3/3/2022 2,021,089
3,000,000   Gulfport Energy Corp., Sr. Unsecd. Note, 6.00%, 10/15/2024 2,902,500
1,893,000   Oasis Petroleum, Inc., 6.875%, 3/15/2022 1,930,311
2,000,000   QEP Resources, Inc., Sr. Unsecd. Note, 5.25%, 5/1/2023 1,965,000
4,000,000   Range Resources Corp., Sr. Unsecd. Note, 5.00%, 8/15/2022 3,980,000
3,000,000   Southwestern Energy Co., Sr. Unsecd. Note, 4.10%, 3/15/2022 2,880,000
4,100,000   Ultra Resources, Inc., Sr. Unsecd. Note, Series 144A, 6.875%, 4/15/2022 3,126,250
    TOTAL 23,634,008
    Insurance - P&C—0.3%  
2,900,000   Kirs Midco 3 PLC, Sec. Fac. Bond, Series 144A, 8.625%, 7/15/2023 2,958,000
    Media Entertainment—0.3%  
3,000,000 1 Walt Disney Co., Sr. Unsecd. Note, Series MTN, 2.508%, (3-month USLIBOR +0.190%), 6/5/2020 3,005,235
    Metals & Mining—0.2%  
2,000,000   Freeport-McMoRan, Inc., Sr. Unsecd. Note, 3.875%, 3/15/2023 1,895,000
    Midstream—0.5%  
275,000   NGPL PipeCo LLC, Sr. Unsecd. Note, Series 144A, 4.375%, 8/15/2022 273,281
4,000,000   Suburban Propane Partners LP, 5.50%, 6/1/2024 3,900,000
1,350,000   Sunoco LP/Finance Corp., Sr. Unsecd. Note, Series 144A, 4.875%, 1/15/2023 1,299,375
    TOTAL 5,472,656
    Oil Field Services—0.4%  
3,925,000   Sesi LLC, 7.125%, 12/15/2021 3,998,594
    Packaging—0.8%  
3,800,000   Ardagh Packaging Finance PLC/Ardagh Holdings, Sec. Fac. Bond, Series 144A, 4.25%, 9/15/2022 3,738,250
2,000,000   Ardagh Packaging Finance PLC/Ardagh Holdings, Sr. Unsecd. Note, Series 144A, 6.00%, 2/15/2025 1,952,500
1,000,000   Ardagh Packaging Finance PLC/Ardagh Holdings, Sr. Unsecd. Note, Series 144A, 6.00%, 6/30/2021 1,012,500
2,000,000   Ardagh Packaging Finance PLC/Ardagh Holdings, Sr. Unsecd. Note, Series 144A, 7.25%, 5/15/2024 2,087,500
    TOTAL 8,790,750
    Pharmaceuticals—2.8%  
4,550,000 1 Bayer US Finance II LLC, Sr. Unsecd. Note, Series 144A, 3.288%, (3-month USLIBOR +1.010%), 12/15/2023 4,553,157
2,075,000   Eagle Holding Co., Sr. Unsecd. Note, Series 144A, 7.625%, 5/15/2022 2,101,352
3
Principal
Amount
or Shares 		    Value
    CORPORATE BONDS—continued  
    Pharmaceuticals—continued  
$6,000,000   Endo Finance LLC/Endo Finco, Inc., Sr. Unsecd. Note, Series 144A, 5.375%, 1/15/2023 $4,830,000
1,000,000   Endo Finance LLC/Endo Finco, Inc., Sr. Unsecd. Note, Series 144A, 5.75%, 1/15/2022 900,000
4,000,000   Jaguar Holding Co. II/Pharmaceutical Product Development LLC, Sr. Unsecd. Note, Series 144A, 6.375%, 8/1/2023 3,990,800
725,000   Mallinckrodt International Finance SA/Mallinckrodt CB LLC, Series 144A, 4.875%, 4/15/2020 715,938
7,000,000   Mallinckrodt International Finance SA/Mallinckrodt CB LLC, Sr. Unsecd. Note, Series 144A, 5.75%, 8/1/2022 6,335,000
3,000,000   Teva Pharmaceutical Finance Netherlands III BV, Sr. Unsecd. Note, 2.80%, 7/21/2023 2,593,305
2,000,000   Valeant Pharmaceuticals International, Inc., Series 144A, 5.625%, 12/1/2021 1,975,000
2,000,000   Vrx Escrow Corp, Series 144A, 5.875%, 5/15/2023 1,886,250
    TOTAL 29,880,802
    Retailers—0.9%  
1,000,000 1 Alimentation Couche-Tard, Inc., Sr. Unsecd. Note, Series 144A, 2.833%, (3-month USLIBOR +0.500%), 12/13/2019 1,000,994
2,520,000 1 CVS Health Corp., Sr. Unsecd. Note, 3.047%, (3-month USLIBOR +0.720%), 3/9/2021 2,533,681
2,680,000 1 Dollar Tree, Inc., Sr. Unsecd. Note, 3.055%, (3-month USLIBOR +0.700%), 4/17/2020 2,685,590
2,000,000   Party City Holdings, Inc., Sr. Unsecd. Note, Series 144A, 6.125%, 8/15/2023 2,020,000
8,000   Penney (J.C.) Co., Inc., 5.65%, 6/1/2020 7,890
2,000,000   Penney (J.C.) Co., Inc., Series 144A, 5.875%, 7/1/2023 1,882,500
    TOTAL 10,130,655
    Supermarkets—0.2%  
1,975,000 1 Albertsons Cos., Inc., Sec. Fac. Bond, Series 144A, 6.085%, (3-month USLIBOR +3.750%), 1/15/2024 1,984,875
    Technology—1.1%  
3,000,000 1 Apple, Inc., Sr. Unsecd. Note, 2.869%, (3-month USLIBOR +0.500%), 2/9/2022 3,038,586
1,300,000   Diamond 1 Finance Corp./Diamond 2 Finance Corp., Sr. Secd. Note, Series 144A, 4.42%, 6/15/2021 1,319,331
3,000,000 1 IBM Corp., Sr. Unsecd. Note, 2.596%, (3-month USLIBOR +0.230%), 1/27/2020 3,010,006
1,550,000   Symantec Corp., Sr. Unsecd. Note, 3.95%, 6/15/2022 1,513,000
3,000,000   Tempo Acquisition LLC, Sr. Unsecd. Note, Series 144A, 6.75%, 6/1/2025 2,887,500
    TOTAL 11,768,423
    Utility - Electric—0.6%  
525,000 1 Mississippi Power Co., Sr. Unsecd. Note, 2.987%, (3-month USLIBOR +0.650%), 3/27/2020 525,018
4,000,000   NRG Energy, Inc., Sr. Unsecd. Note, 6.25%, 7/15/2022 4,126,200
1,750,000   TerraForm Power Operating LLC, Sr. Unsecd. Note, Series 144A, 4.25%, 1/31/2023 1,693,125
    TOTAL 6,344,343
    Wireless Communications—0.6%  
2,000,000 1 AT&T, Inc., Sr. Unsecd. Note, 3.264%, (3-month USLIBOR +0.930%), 6/30/2020 2,022,930
2,000,000 1 Verizon Communications, Inc., Floating Rate Note—Sr. Note, 3.105%, (3-month USLIBOR +0.770%), 6/17/2019 2,011,361
410,000 1 Verizon Communications, Inc., Floating Rate Note—Sr. Note, 4.086%, (3-month USLIBOR +1.750%), 9/14/2018 411,430
2,500,000 1 Verizon Communications, Inc., Sr. Unsecd. Note, 3.335%, (3-month USLIBOR +1.000%), 3/16/2022 2,540,998
    TOTAL 6,986,719
    Wireline Communications—0.3%  
3,000,000 1 Vodafone Group PLC, Sr. Unsecd. Note, 3.290%, (3-month USLIBOR +0.990%), 1/16/2024 2,988,378
    TOTAL CORPORATE BONDS
(IDENTIFIED COST $308,895,957) 		307,085,767
  1 ASSET-BACKED SECURITIES—3.7%  
    Auto Receivables—0.3%  
2,300,000   BMW Floorplan Master Owner Trust 2018-1, Class A2, 2.350%, (1-month USLIBOR +0.320%), 5/15/2023 2,300,118
1,116,925   Chesapeake Funding II LLC 2016-2A, Class A2, 3.073%, (1-month USLIBOR +1.000%), 6/15/2028 1,120,285
    TOTAL 3,420,403
    Credit Card—3.1%  
5,000,000   American Express Credit Account Master 2013-1, Class A, 2.493%, (1-month USLIBOR +0.420%), 2/16/2021 5,000,698
1,500,000   American Express Credit Account Master 2013-1, Class B, 2.773%, (1-month USLIBOR +0.700%), 2/16/2021 1,500,304
4
Principal
Amount
or Shares 		    Value
  1 ASSET-BACKED SECURITIES—continued  
    Credit Card—continued  
$5,000,000   American Express Credit Account Master Trust 2014-1, Class A, 2.443%, (1-month USLIBOR +0.370%), 12/15/2021 $5,013,103
6,000,000   Bank of America Credit Card 2016-A1, Class A, 2.463%, (1-month USLIBOR +0.390%), 10/15/2021 6,013,426
3,000,000   Cards II Trust, Class A, 2.773%, (1-month USLIBOR +0.700%), 7/15/2021 3,000,686
10,000,000   Chase Issuance Trust 2013-A9, Class A, 2.493%, (1-month USLIBOR +0.420%), 11/16/2020 10,013,413
2,100,000   Master Credit Card Trust 2018-1A, Class A, 2.578%, (1-month USLIBOR +0.490%), 7/22/2024 2,097,117
    TOTAL 32,638,747
    Other—0.2%  
2,200,000   PFS Financing Corp. 2018-A, Class A, 2.319%, (1-month USLIBOR +0.400%), 2/15/2022 2,201,715
    Student Loan—0.1%  
859,791   SLM Student Loan Trust 2013-C, Class A2B, 3.473%, (1-month USLIBOR +1.400%), 10/15/2031 866,370
    TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $39,161,520) 		39,127,235
  1 COLLATERALIZED MORTGAGE OBLIGATIONS—2.7%  
    Commercial Mortgage—0.1%  
600,000   Wells Fargo Commercial Mortgage Trust 2013-LC12, Class A3FL, 3.123%, (1-month USLIBOR +1.050%), 7/15/2046 608,757
    Federal Home Loan Mortgage Corporation—0.7%  
1,535,394   REMIC 2976 KJ, 2.423%, (1-month USLIBOR +0.350%), 5/15/2035 1,539,930
260,328   REMIC 3122 FE, 2.373%, (1-month USLIBOR +0.300%), 3/15/2036 260,355
658,096   REMIC 3241 FM, 2.453%, (1-month USLIBOR +0.380%), 11/15/2036 660,430
1,312,450   REMIC 3922 CF, 2.473%, (1-month USLIBOR +0.400%), 4/15/2041 1,316,995
4,200,217   REMIC 4097 KF, 2.373%, (1-month USLIBOR +0.300%), 9/15/2031 4,207,604
    TOTAL 7,985,314
    Federal National Mortgage Association—0.9%  
548,875   REMIC 2006-111 FA, 2.471%, (1-month USLIBOR +0.380%), 11/25/2036 551,121
2,589,493   REMIC 2006-85 PF, 2.471%, (1-month USLIBOR +0.380%), 9/25/2036 2,601,781
913,894   REMIC 2006-99 AF, 2.511%, (1-month USLIBOR +0.420%), 10/25/2036 919,110
167,565   REMIC 2010-134 BF, 2.521%, (1-month USLIBOR +0.430%), 10/25/2040 168,238
331,967   REMIC 2010-135 FP, 2.491%, (1-month USLIBOR +0.400%), 12/25/2040 334,035
788,857   REMIC 2012-135 FA, 2.391%, (1-month USLIBOR +0.300%), 11/25/2039 789,083
1,072,643   REMIC 2012-79 F, 2.541%, (1-month USLIBOR +0.450%), 7/25/2042 1,078,521
3,168,684   REMIC 2014-73 FA, 2.441%, (1-month USLIBOR +0.350%), 11/25/2044 3,177,574
    TOTAL 9,619,463
    Government National Mortgage Association—0.7%  
6,919,928   REMIC 2012-41 FA, 2.484%, (1-month USLIBOR +0.400%), 3/20/2042 6,982,648
    Non-Agency Mortgage—0.3%  
483,661   Gosforth Funding PLC 2016-1A, Class A1A, 3.043%, (3-month USLIBOR +0.700%), 2/15/2058 484,752
2,900,000   Silverstone Master Issuer 2018-1A, Class 1A, 2.120%, (3-month USLIBOR +0.390%), 1/21/2070 2,895,296
    TOTAL 3,380,048
    TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(IDENTIFIED COST $28,546,730) 		28,576,230
  1 FLOATING RATE LOANS—4.7%  
    Automotive—0.2%  
2,000,000   Goodyear Tire & Rubber Co., Term Loan—2nd Lien, 4.050%, (3-month USLIBOR +2.000%), 3/7/2025 2,005,310
    Cable Satellite—0.9%  
3,500,000   Virgin Media Bristol LLC, Term Loan—1st Lien, 4.573%, (3-month USLIBOR +2.500%), 1/15/2026 3,479,227
5,970,000   Charter Communications Operating LLC, Term Loan—1st Lien, 4.100%, (3-month USLIBOR +2.000%), 4/30/2025 5,968,597
    TOTAL 9,447,824
    Chemicals—0.3%  
1,105,263   WR Grace & Co-Conn, Term Loan—1st Lien, 4.084%, (3-month USLIBOR +1.750%), 4/3/2025 1,103,649
5
Principal
Amount
or Shares 		    Value
  1 FLOATING RATE LOANS—continued  
    Chemicals—continued  
$1,894,737   WR Grace & Co-Conn, Term Loan—1st Lien, 4.084%, (3-month USLIBOR +2.000%), 4/3/2025 $1,891,971
    TOTAL 2,995,620
    Finance Companies—0.2%  
2,000,000   Avolon Holdings Ltd., Term Loan—1st Lien, 4.088%, (3-month USLIBOR +2.000%), 1/15/2025 1,978,050
    Food & Beverage—0.4%  
2,418,214   Aramark Services, Inc., Term Loan—1st Lien, 4.084%, (3-month USLIBOR +1.750%), 3/28/2024 2,420,862
1,496,250   Aramark Services, Inc., Term Loan—1st Lien, 4.084%, (3-month USLIBOR +1.750%), 3/11/2025 1,496,722
    TOTAL 3,917,584
    Gaming—0.7%  
5,897,020   Las Vegas Sands Corp., Term Loan—1st Lien, 3.844%, (3-month USLIBOR +1.750%), 3/27/2025 5,864,381
1,240,625   Seminole Tribe of Florida, Inc., Term Loan—1st Lien, 4.086%, (3-month USLIBOR +1.750%), 7/6/2024 1,245,054
476,250   Seminole Hard Rock Entertainment, Inc./Seminole Hard Rock International LLC, Term Loan—1st Lien, 5.058%, (3-month USLIBOR +2.750%), 5/14/2020 478,631
    TOTAL 7,588,066
    Health Care—0.1%  
205,061   HCA, Inc., Term Loan—1st Lien, 3.844%, (3-month USLIBOR +1.750%), 3/18/2023 205,516
498,750   HCA, Inc., Term Loan—1st Lien, 4.094%, (3-month USLIBOR +2.000%), 3/13/2025 500,902
    TOTAL 706,418
    Lodging—0.3%  
2,835,321   Hilton Worldwide Finance LLC, Term Loan—1st Lien, 3.841%, (3-month USLIBOR +1.750%), 10/25/2023 2,838,270
500,000   Wyndham Hotels & Resorts, Inc., Term Loan—1st Lien, 3.842%, (3-month USLIBOR +1.750%), 5/30/2025 499,845
    TOTAL 3,338,115
    Media Entertainment—0.1%  
748,125   Lamar Media Corp., Term Loan—1st Lien, 3.875%, (3-month USLIBOR +1.750%), 3/14/25 748,903
985,050   Nielsen Finance LLC/Nielsen Finance Co., Term Loan—1st Lien, 4.046%, (3-month USLIBOR +2.000%), 10/4/2023 985,552
    TOTAL 1,734,455
    Packaging—0.3%  
1,500,000   Crown Americas LLC, Term Loan—1st Lien, 4.090%, (3-month USLIBOR +2.000%), 1/29/2025 1,503,120
1,783,569   SIG Combibloc, Term Loan—1st Lien, 4.844%, (3-month USLIBOR +2.750%), 3/13/2022 1,786,547
    TOTAL 3,289,667
    Pharmaceuticals—0.2%  
2,500,000   Iqvia, Inc., Term Loan—1st Lien, 4.086%, (3-month USLIBOR +1.750%), 6/8/2025 2,481,250
    Restaurants—0.1%  
1,473,881   KFC Holding Co., Term Loan—1st Lien, 3.835%, (3-month USLIBOR +1.750%), 4/3/2025 1,461,449
    Retailers—0.2%  
1,741,250   Hanesbrands, Inc., Term Loan—1st Lien, 3.844%, (3-month USLIBOR +1.750%), 12/15/2024 1,742,347
    Technology—0.6%  
1,492,500   DELL International LLC, Term Loan—1st Lien, 4.100%, (3-month USLIBOR +2.000%), 9/7/2023 1,487,142
980,038   Leidos Innovations Corp., Term Loan—1st Lien, 3.875%, (3-month USLIBOR +1.750%), 8/16/2023 984,938
1,250,000   Microchip Technology, Inc., Term Loan—1st Lien, 4.100%, (3-month USLIBOR +2.000%), 5/29/2025 1,250,262
2,766,950   Sensata Technologies B.V., Term Loan—1st Lien, 4.086%, (3-month USLIBOR +1.750%), 10/14/2021 2,772,719
497,500   TTM Technologies, Term Loan—1st Lien, 4.592%, (3-month USLIBOR +2.500%), 9/28/2024 496,570
    TOTAL 6,991,631
    Utility - Electric—0.1%  
985,000   Dayton Power & Light Co., Term Loan—1st Lien, 4.100%, (3-month USLIBOR +2.000%), 8/24/2022 986,231
    TOTAL FLOATING RATE LOANS
(IDENTIFIED COST $50,629,800) 		50,664,017
6
Principal
Amount
or Shares 		    Value
    INVESTMENT COMPANIES—59.6%  
53,510,577   Federated Bank Loan Core Fund $536,711,090
6,249,123   Federated Institutional Prime Value Obligations Fund, Institutional Shares, 2.08%2 6,249,749
10,347,567   Federated Project and Trade Finance Core Fund 93,955,905
    TOTAL INVESTMENT COMPANIES
(IDENTIFIED COST $646,754,101) 		636,916,744
    TOTAL INVESTMENT IN SECURITIES—99.5%
(IDENTIFIED COST $1,074,730,696) 		1,063,103,878
    OTHER ASSETS AND LIABILITIES - NET—0.5%3 5,868,094
    TOTAL NET ASSETS—100% $1,068,971,972
At June 30, 2018, the Fund had the following outstanding futures contracts:
Description Number of
Contracts 		Notional
Value 		Expiration
Date 		Value and
Unrealized
(Depreciation)
4U.S. Treasury Note 5-Year Short Futures 160 $18,178,750 September 2018 $(87,875)
4U.S. Treasury Note 10-Year Short Futures 150 $18,028,125 September 2018 $(149,382)
UNREALIZED DEPRECIATION ON FUTURES CONTRACTS       $(237,257)
The average notional value of short futures contracts held by the Fund throughout the period was $40,813,984. This is based on the contracts held as of each month-end throughout the three-month fiscal period.
Unrealized Depreciation on Futures Contracts is included in “Other Assets and Liabilities—Net.”
Affiliated fund holdings are investment companies which are managed by Federated Investment Management Company (the “Adviser”) or an affiliate of the Adviser. Transactions with affiliated fund holdings during the period ended June 30, 2018, were as follows:
  Federated
Bank Loan
Core Fund* 		Federated
Institutional
Prime Value
Obligations Fund,
Institutional Shares 		Federated
Project
and Trade
Finance
Core Fund 		Total of
Affiliated
Transactions
Balance of Shares Held 3/31/2018 50,930,403 12,614,009 9,134,047 72,678,459
Purchases/Additions 2,580,174 65,390,191 1,213,520 69,183,885
Sales/Reductions — (71,755,077) — (71,755,077)
Balance of Shares Held 6/30/2018 53,510,577 6,249,123 10,347,567 70,107,267
Value $536,711,090 $6,249,749 $93,955,905 $636,916,744
Change in Unrealized Appreciation/Depreciation $(4,195,287) $1,581 $201,439 $(3,992,267)
Net Realized Gain/(Loss) $— $62 $— $62
Dividend Income $7,259,841 $52,256 $1,016,069 $8,328,166
* At June 30, 2018, the Fund owns a majority of the outstanding shares of beneficial interest of Federated Bank Loan Core Fund.
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund may invest in a portfolio of Federated Core Trust (“Core Trust”), which is managed by the Adviser. Core Trust is an open-end management company, registered under the Investment Company Act of 1940, as amended (the “Act”), available only to registered investment companies and other institutional investors. The investment objective of Federated Bank Loan Core Fund (BLCORE), a portfolio of Core Trust, is to provide current income. It pursues its objective by investing primarily in a portfolio of U.S. dollar-denominated floating-rate term loans, loan-related derivatives and loan index products. Federated Investors, Inc. receives no advisory or administrative fees from the funds within the Core Trust. Income distributions from BLCORE are declared daily and paid monthly, and are recorded by the Fund as dividend income. Capital gain distributions, if any, from BLCORE are declared and paid annually, and are recorded by the Fund as capital gains. The performance of the Fund is directly affected by the performance of BLCORE in which the Fund invested 50.2% of its net assets at June 30, 2018. A copy of BLCORE's financial statements is available on the EDGAR Database on the SEC's website or upon request from the Fund.
1 Floating/adjustable note with current rate and current maturity or next reset date shown. Adjustable rate mortgage security coupons are based on the weighted average note rates of the underlying mortgages less the guarantee and servicing fees. These securities do not indicate an index and spread in their description above.
2 7-day net yield.
3 Assets, other than investments in securities, less liabilities.
4 Non-income-producing security.
7
Note: The categories of investments are shown as a percentage of total net assets at June 30, 2018.
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
■ Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Fund's Board of Trustees (the “Trustees”).
■ Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs.
■ Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations.
■ Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.
■ For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer's financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.
If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Fund's valuation policies and procedures, or if information furnished by a pricing service, in the opinion of the valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share.
Fair Valuation and Significant Events Procedures
The Trustees have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Trustees have appointed a Valuation Committee comprised of officers of the Fund, the Adviser and certain of the Adviser's affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
■ With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;
■ Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;
■ Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.
The Trustees have adopted procedures whereby the Valuation Committee uses a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Trustees. The Trustees have ultimate responsibility for any fair valuations made in response to a significant event.
8
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used, as of June 30, 2018, in valuing the Fund's assets carried at fair value:
Valuation Inputs        
  Level 1—
Quoted
Prices 		Level 2—
Other
Significant
Observable
Inputs 		Level 3—
Significant
Unobservable
Inputs 		Total
Debt Securities:        
Adjustable Rate Mortgages $— $733,885 $— $733,885
Corporate Bonds — 307,085,767 — 307,085,767
Asset-Backed Securities — 39,127,235 — 39,127,235
Collateralized Mortgage Obligations — 28,576,230 — 28,576,230
Floating Rate Loans — 50,664,017 — 50,664,017
Investment Companies1 6,249,749 — — 636,916,744
TOTAL SECURITIES $6,249,749 $426,187,134 $— $1,063,103,878
Other Financial Instruments2        
Assets $— $— $— $—
Liabilities (237,257) — — (237,257)
TOTAL OTHER FINANCIAL INSTRUMENTS $(237,257) $— $— $(237,257)
1 As permitted by U.S. generally accepted accounting principles, Investment Companies valued at $630,666,995 are measured at fair value using the NAV per share practical expedient and have not been categorized in the chart above but are included in the Total column. The price of shares redeemed in Federated Bank Loan Core Fund is the next determined NAV after receipt of a shareholder redemption request. The price of shares redeemed of Federated Project and Trade Finance Core Fund may be determined as of the closing NAV of the fund up to twenty-four days after receipt of a shareholder redemption request.
2 Other financial instruments are futures contracts.
The following acronyms are used throughout this portfolio:
ARM —Adjustable Rate Mortgage
BKNT —Bank Notes
FHLMC —Federal Home Loan Mortgage Corporation
FNMA —Federal National Mortgage Association
FRN —Floating Rate Notes
GMTN —Global Medium Term Note
LIBOR —London Interbank Offered Rate
MTN —Medium Term Note
REMIC —Real Estate Mortgage Investment Conduit
9
Federated Fund for U.S. Government Securities
Portfolio of Investments
June 30, 2018 (unaudited)
Principal
Amount
or Shares 		    Value
    MORTGAGE-BACKED SECURITIES—89.2%  
    Federal Home Loan Mortgage Corporation—37.0%  
$1,451,958   3.000%, 3/1/2032 $1,445,376
2,352,710   3.000%, 12/1/2032 2,337,634
1,650,490   3.000%, 2/1/2033 1,641,976
6,009,432   3.000%, 8/1/2043 5,856,218
5,522,318   3.000%, 8/1/2046 5,352,187
1,703,767   3.000%, 11/1/2046 1,650,212
14,598,022   3.000%, 1/1/2047 14,139,162
3,556,681   3.000%, 1/1/2047 3,444,884
4,572,297   3.000%, 2/1/2047 4,428,576
4,676,777   3.500%, 4/1/2042 4,692,883
3,396,449   3.500%, 4/1/2042 3,408,146
2,650,219   3.500%, 7/1/2042 2,659,345
4,103,063   3.500%, 8/1/2042 4,117,193
2,132,536   3.500%, 9/1/2043 2,137,215
2,855,648   3.500%, 10/1/2046 2,849,420
1,922,168   3.500%, 11/1/2047 1,913,770
779,404   4.000%, 8/1/2025 799,624
6,246,367   4.000%, 12/1/2041 6,423,429
837,486   4.000%, 1/1/2042 861,225
1,495,686   4.000%, 4/1/2048 1,525,522
144,710   4.500%, 2/1/2024 148,854
359,662   4.500%, 6/1/2024 370,073
228,495   4.500%, 11/1/2039 240,209
602,931   4.500%, 4/1/2040 633,841
1,491,149   4.500%, 5/1/2040 1,567,594
855,404   4.500%, 5/1/2040 899,257
465,229   4.500%, 8/1/2040 488,934
1,212,599   4.500%, 9/1/2040 1,274,385
1,987,309   4.500%, 9/1/2040 2,088,569
1,802,443   4.500%, 9/1/2041 1,909,491
44,047   5.000%, 7/1/2020 44,659
605,963   5.000%, 1/1/2034 645,538
1,312,222   5.000%, 5/1/2034 1,398,307
147,279   5.000%, 2/1/2039 157,482
468,213   5.000%, 3/1/2039 500,647
324,921   5.000%, 7/1/2039 347,429
765,149   5.000%, 9/1/2039 818,152
1,305,014   5.000%, 10/1/2039 1,395,210
11,284   5.500%, 3/1/2021 11,588
3,496,548   5.500%, 5/1/2034 3,795,896
504,836   5.500%, 12/1/2035 548,687
557,709   5.500%, 5/1/2036 606,156
39,546   5.500%, 6/1/2036 43,054
639,827   5.500%, 6/1/2036 696,101
88,916   5.500%, 9/1/2037 96,848
1
Principal
Amount
or Shares 		    Value
    MORTGAGE-BACKED SECURITIES—continued  
    Federal Home Loan Mortgage Corporation—continued  
$36,836   6.000%, 2/1/2032 $40,809
294,296   6.500%, 10/1/2037 333,144
31,811   6.500%, 4/1/2038 36,010
45,999   6.500%, 10/1/2038 51,931
4,878   6.500%, 10/1/2038 5,540
293,880   7.000%, 12/1/2031 335,012
5,035   7.500%, 1/1/2021 5,262
89,631   7.500%, 1/1/2027 100,058
3,039   7.500%, 12/1/2029 3,485
78,806   7.500%, 5/1/2030 89,017
21,388   7.500%, 1/1/2031 24,582
112,116   7.500%, 2/1/2031 128,861
5,027   7.500%, 8/1/2031 5,796
    TOTAL 93,570,465
    Federal National Mortgage Association—46.3%  
8,668,508 1 2.500%, 5/1/2028 8,509,619
1,741,108   2.500%, 3/1/2031 1,695,592
2,378,723   3.000%, 12/1/2032 2,367,103
2,371,153   3.000%, 12/1/2032 2,358,829
2,394,703   3.000%, 1/1/2033 2,384,502
2,468,983   3.000%, 10/1/2046 2,394,462
3,277,472   3.000%, 11/1/2046 3,177,012
2,455,724   3.000%, 1/1/2047 2,380,452
2,183,336   3.000%, 1/1/2047 2,116,413
1,067,114   3.000%, 2/1/2047 1,037,407
2,866,920   3.000%, 4/1/2047 2,779,044
472,565   3.500%, 12/1/2040 475,356
6,523,782   3.500%, 8/1/2042 6,550,071
4,359,946   3.500%, 9/1/2042 4,376,153
5,864,231   3.500%, 12/1/2042 5,886,029
868,706   3.500%, 12/1/2042 872,206
5,908,731   3.500%, 4/1/2043 5,940,850
904,857   3.500%, 5/1/2043 907,655
2,766,847   3.500%, 11/1/2045 2,765,459
1,274,244   3.500%, 7/1/2046 1,274,003
1,285,152   3.500%, 9/1/2046 1,284,909
2,468,047   3.500%, 1/1/2048 2,457,940
5,370,287   4.000%, 12/1/2031 5,530,487
1,437,715   4.000%, 2/1/2041 1,479,704
3,870,446   4.000%, 12/1/2041 3,983,486
5,450,602   4.000%, 3/1/2042 5,606,386
2,965,875   4.000%, 4/1/2042 3,051,106
3,872,173   4.000%, 1/1/2044 3,976,188
3,912,073   4.000%, 6/1/2044 4,011,658
1,491,261   4.000%, 2/1/2048 1,521,417
47,556   4.500%, 12/1/2019 47,813
1,376,999   4.500%, 10/1/2040 1,447,807
3,098,051   4.500%, 3/1/2041 3,256,391
120,358   4.500%, 6/1/2041 126,434
2
Principal
Amount
or Shares 		    Value
    MORTGAGE-BACKED SECURITIES—continued  
    Federal National Mortgage Association—continued  
$1,584,288   4.500%, 1/1/2042 $1,663,280
3,406,528   4.500%, 6/1/2044 3,571,053
2,852,875   4.500%, 2/1/2048 2,973,498
353,923   5.000%, 1/1/2024 367,446
1,570,501   5.000%, 7/1/2034 1,677,111
97,844   5.000%, 11/1/2035 104,582
390,312   5.000%, 1/1/2039 418,264
990,038   5.000%, 7/1/2039 1,060,940
228,190   5.000%, 10/1/2039 244,497
1,445,966   5.000%, 11/1/2039 1,549,293
499,875   5.000%, 12/1/2039 535,596
123,317   5.000%, 1/1/2040 132,129
752,947   5.500%, 9/1/2034 820,468
188,491   5.500%, 6/1/2035 205,083
181,921   5.500%, 8/1/2035 198,119
306,835   5.500%, 9/1/2037 334,578
12,756   6.000%, 10/1/2028 13,942
7,185   6.000%, 11/1/2028 7,865
571   6.000%, 12/1/2028 622
11,861   6.000%, 12/1/2028 12,692
20,614   6.000%, 12/1/2028 22,554
15,474   6.000%, 12/1/2028 16,852
12,774   6.000%, 12/1/2028 13,885
2,859   6.000%, 1/1/2029 3,107
15,933   6.000%, 1/1/2029 17,344
3,629   6.000%, 1/1/2029 3,951
619   6.000%, 1/1/2029 675
19,249   6.000%, 1/1/2029 20,966
963   6.000%, 3/1/2029 1,053
628   6.000%, 3/1/2029 688
63,882   6.000%, 5/1/2029 69,506
52,317   6.000%, 5/1/2029 57,000
825   6.000%, 11/1/2029 899
41,466   6.000%, 11/1/2029 45,342
7,820   6.000%, 4/1/2031 8,513
643,651   6.000%, 11/1/2034 711,508
46,883   6.000%, 5/1/2036 51,883
38,492   6.000%, 6/1/2036 42,644
78,289   6.000%, 7/1/2036 86,825
227,976   6.000%, 9/1/2037 253,114
160,809   6.000%, 2/1/2038 178,004
106,967   6.000%, 4/1/2038 118,462
51,240   6.500%, 5/1/2031 56,901
31,949   6.500%, 6/1/2031 35,469
58,808   6.500%, 4/1/2032 65,185
39,340   6.500%, 11/1/2035 43,723
263,935   6.500%, 9/1/2036 297,703
731,563   6.500%, 8/1/2037 826,076
94,692   7.000%, 8/1/2028 105,753
3
Principal
Amount
or Shares 		    Value
    MORTGAGE-BACKED SECURITIES—continued  
    Federal National Mortgage Association—continued  
$48,407   7.000%, 10/1/2028 $53,992
23,803   7.000%, 6/1/2029 26,851
213   7.000%, 11/1/2031 243
7,120   7.000%, 11/1/2031 8,108
2,874   7.000%, 12/1/2031 3,281
92,095   7.000%, 12/1/2031 104,477
6,411   7.000%, 12/1/2031 7,313
1,287   7.000%, 1/1/2032 1,461
1,110   7.500%, 1/1/2030 1,268
    TOTAL 117,283,580
    Government National Mortgage Association—5.9%  
5,977,044   3.500%, 12/15/2040 6,006,795
1,573,170   3.500%, 2/20/2046 1,583,950
4,292,968   3.500%, 8/20/2047 4,310,311
305,707   5.000%, 11/20/2038 321,081
102,080   5.000%, 12/20/2038 109,542
181,798   5.000%, 5/20/2039 194,406
751,066   5.000%, 8/20/2039 802,037
336,475   5.000%, 9/20/2039 359,309
310,634   5.500%, 12/20/2038 337,362
259,437   6.000%, 9/20/2038 288,046
48,294   7.500%, 12/15/2023 52,106
11,944   7.500%, 1/15/2026 13,386
15,178   7.500%, 2/15/2026 16,804
208,808   7.500%, 2/15/2028 237,838
5,415   7.500%, 6/15/2029 6,058
3,816   7.500%, 7/15/2029 4,360
896   7.500%, 7/15/2029 1,021
1,707   7.500%, 7/15/2029 1,803
4,999   7.500%, 9/15/2029 5,735
636   7.500%, 9/15/2029 722
2,693   7.500%, 10/15/2029 3,025
11,507   7.500%, 10/15/2029 13,201
10,102   7.500%, 10/15/2029 11,562
6,118   7.500%, 10/15/2029 7,046
58,826   7.500%, 6/15/2030 67,737
32,536   7.500%, 6/15/2030 37,465
85,033   7.500%, 7/15/2030 97,914
79,432   8.250%, 10/15/2030 94,692
    TOTAL 14,985,314
    TOTAL MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $225,338,815) 		225,839,359
    ASSET-BACKED SECURITIES—3.8%  
    Auto Receivables—3.0%  
4,570,000   Santander Drive Auto Receivables Trust 2015-2, Class D, 3.020%, 4/15/2021 4,579,004
2,900,000   Santander Drive Auto Receivables Trust 2015-3, Class D, 3.490%, 5/17/2021 2,920,681
    TOTAL 7,499,685
    Other—0.8%  
680,026   Sofi Consumer Loan Program Trust 2016-1, Class A, 3.260%, 8/25/2025 679,089
866,573   Sofi Consumer Loan Program Trust 2016-2, Class A, 3.090%, 10/27/2025 865,596
4
Principal
Amount
or Shares 		    Value
    ASSET-BACKED SECURITIES—continued  
    Other—continued  
$615,430   Sofi Consumer Loan Program Trust 2016-3, Class A, 3.050%, 12/26/2025 $613,899
    TOTAL 2,158,584
    TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $9,629,480) 		9,658,269
    COLLATERALIZED MORTGAGE OBLIGATIONS—3.2%  
    Non-Agency Mortgage-Backed Securities—3.2%  
259,062   Credit Suisse Mortgage Trust 2007-4, Class 4A2, 5.500%, 6/25/2037 193,259
721,137   Credit Suisse Mortgage Trust 2014-WIN2, Class A2, 3.500%, 10/25/2044 711,615
1,743,400   Credit Suisse Mortgage Trust 2015-WIN1, Class A6, 3.500%, 12/25/2044 1,717,117
90,439 2 Lehman Structured Securities Corp. Mortgage 2002-GE1, Class A, 0.000%, 7/26/2024 65,183
272,045   Sequoia Mortgage Trust 2012-1, Class 2A1, 3.474%, 1/25/2042 268,785
1,342,417   Sequoia Mortgage Trust 2012-4, Class A3, 2.069%, 9/25/2042 1,239,582
1,073,691   Sequoia Mortgage Trust 2014-1, Class 2A5, 4.000%, 4/25/2044 1,088,434
2,748,193   Sequoia Mortgage Trust 2014-4, Class A5, 3.500%, 11/25/2044 2,712,046
    TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(IDENTIFIED COST $8,324,273) 		7,996,021
    COMMERCIAL MORTGAGE-BACKED SECURITY—1.0%  
    Agency Commercial Mortgage-Backed Securities—1.0%  
2,543,816   FHLMC REMIC K060 A1, 2.958%, 7/25/2026
(IDENTIFIED COST $2,594,632) 		2,519,498
    U.S. TREASURY—0.9%  
    U.S. Treasury Notes—0.9%  
2,500,000   United States Treasury Notes, 2.250%, 11/15/2027
(IDENTIFIED COST $2,377,559) 		2,374,056
    INVESTMENT COMPANY—1.8%  
4,490,604   Federated Government Obligations Fund, Premier Shares, 1.79%3
(IDENTIFIED COST $4,490,604) 		4,490,604
    TOTAL INVESTMENT IN SECURITIES—99.9%
(IDENTIFIED COST $252,755,363) 		252,877,807
    OTHER ASSETS AND LIABILITIES - NET—0.1%4 280,829
    TOTAL NET ASSETS—100% $253,158,636
Affiliated fund holdings are investment companies which are managed by Federated Investment the Adviser or an affiliate of the Adviser. Transactions with affiliated fund holdings during the period ended June 30, 2018, were as follows:
  Federated
Government
Obligations Fund,
Premier Shares
Balance of Shares Held 3/31/2018 3,291,650
Purchases/Additions 13,623,373
Sales/Reductions (12,424,419)
Balance of Shares Held 6/30/2018 4,490,604
Value $4,490,604
Change in Unrealized Appreciation/Depreciation NA
Net Realized Gain/(Loss) NA
Dividend Income $11,224
1 All or a portion of these securities are segregated pending settlement of dollar-roll transactions.
2 Non-income-producing security.
3 7-day net yield.
4 Assets, other than investments in securities, less liabilities.
Note: The categories of investments are shown as a percentage of total net assets at June 30, 2018.
5
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
■ Fixed-income securities are fair valued using price evaluations approved by the Fund's Board of Trustees (the “Trustees”).
■ Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs.
■ Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations.
■ Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.
■ For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer's financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.
If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Fund's valuation policies and procedures, or if information furnished by a pricing service, in the opinion of the valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share.
Fair Valuation and Significant Events Procedures
The Trustees have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Trustees have appointed a Valuation Committee comprised of officers of the Fund, Federated Investment Management Company (the “Adviser”) and certain of the Adviser's affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
■ With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;
■ Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;
■ Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.
The Trustees have adopted procedures whereby the Valuation Committee uses a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Trustees. The Trustees have ultimate responsibility for any fair valuations made in response to a significant event.
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.
6
The following is a summary of the inputs used, as of June 30, 2018, in valuing the Fund's assets carried at fair value:
Valuation Inputs        
  Level 1—
Quoted
Prices 		Level 2—
Other
Significant
Observable
Inputs 		Level 3—
Significant
Unobservable
Inputs 		Total
Debt Securities:        
Mortgage-Backed Securities $— $225,839,359 $— $225,839,359
Asset-Backed Securities — 9,658,269 — 9,658,269
Collateralized Mortgage Obligations — 7,996,021 — 7,996,021
Commercial Mortgage-Backed Security — 2,519,498 — 2,519,498
U.S. Treasury — 2,374,056 — 2,374,056
Investment Company 4,490,604 — — 4,490,604
TOTAL SECURITIES $4,490,604 $248,387,203 $— $252,877,807
The following acronyms are used throughout this portfolio:
FHLMC —Federal Home Loan Mortgage Corporation
REMIC —Real Estate Mortgage Investment Conduit
7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 2.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 within 90 days of the filing date of this report on Form N-Q.

 

(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 last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3.Exhibits

 

 

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 Income Securities Trust

 

By /S/ Lori A. Hensler

 

Lori A. Hensler

Principal Financial Officer

 

Date August 23, 2018

 

 

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/ J. Christopher Donahue

 

J. Christopher Donahue

Principal Executive Officer

 

Date August 23, 2018

 

 

By /S/ Lori A. Hensler

 

Lori A. Hensler

Principal Financial Officer

 

Date August 23, 2018