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

 

 

 

 

811-58429

 

(Investment Company Act File Number)

 

 

Federated Investment Series Funds, Inc.

 

___________________________________________

 

(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)

 

 

John W. McGonigle, 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: 11/30/16

 

 

Date of Reporting Period: Quarter ended 08/31/16

 

 

 

 

 

 

 

Item 1. Schedule of Investments

 

 

 

 

 

Federated Bond Fund
Portfolio of Investments
August 31, 2016 (unaudited)
Principal
Amount
or Shares 		    Value
    CORPORATE BONDS—69.2%  
    Basic Industry - Chemicals—0.9%  
$1,320,000   Albemarle Corp., 4.15%, 12/01/2024 $$1,428,206
1,340,000   Albemarle Corp., Sr. Unsecd. Note, 5.45%, 12/01/2044 1,591,931
2,220,000 1,2 Incitec Pivot Finance LLC, Company Guarantee, Series 144A, 6.000%, 12/10/2019 2,407,257
2,365,000   RPM International, Inc., 6.500%, 02/15/2018 2,523,661
1,415,000   RPM International, Inc., Sr. Unsecd. Note, 5.25%, 6/01/2045 1,515,349
438,000   Rohm & Haas Co., 6.000%, 09/15/2017 458,239
1,200,000   Valspar Corp., Sr. Unsecd. Note, 4.40%, 2/1/2045 1,188,151
    TOTAL 11,112,794
    Basic Industry - Metals & Mining—2.7%  
2,500,000   Alcoa, Inc., 5.870%, 02/23/2022 2,718,750
1,570,000   Alcoa, Inc., Sr. Unsecd. Note, 5.400%, 04/15/2021 1,671,563
1,000,000   Anglogold Ashanti Holdings PLC, Sr. Note, 6.500%, 04/15/2040 1,035,000
820,000   Anglogold Ashanti Holdings PLC, Sr. Unsecd. Note, 5.125%, 8/1/2022 855,875
2,400,000   Carpenter Technology Corp., Sr. Unsecd. Note, 4.450%, 03/01/2023 2,380,063
2,960,000   Carpenter Technology Corp., Sr. Unsecd. Note, 5.200%, 07/15/2021 3,083,385
825,000 1,2 Codelco, Inc., Bond, Series 144A, 5.625%, 9/21/2035 942,743
3,100,000 1,2 Gerdau S.A., Company Guarantee, Series 144A, 5.750%, 01/30/2021 3,180,600
1,000,000   Goldcorp, Inc., Sr. Unsecd. Note, 3.700%, 03/15/2023 1,045,326
1,820,000 1,2 Newcrest Finance Property Ltd., Sr. Unsecd. Note, Series 144A, 4.200%, 10/01/2022 1,885,063
5,350,000   Reliance Steel & Aluminum Co., Sr. Unsecd. Note, 4.500%, 04/15/2023 5,509,098
1,080,000   Southern Copper Corp., Note, 6.750%, 04/16/2040 1,203,139
1,310,000   Southern Copper Corp., Sr. Unsecd. Note, 3.500%, 11/08/2022 1,335,121
3,124,000   Worthington Industries, Inc., Sr. Unsecd. Note, 4.550%, 04/15/2026 3,232,331
3,270,000   Worthington Industries, Inc., Sr. Unsecd. Note, 6.500%, 04/15/2020 3,591,222
    TOTAL 33,669,279
    Basic Industry - Paper—0.8%  
3,200,000   International Paper Co., Sr. Unsecd. Note, 4.40%, 08/15/2047 3,264,928
2,270,000   Plum Creek Timberlands LP, Sr. Unsecd. Note, 3.250%, 03/15/2023 2,269,303
2,850,000 3,4,5 Pope & Talbot, Inc., 8.375%, 12/1/2099 0
1,250,000   Westvaco Corp., 7.650%, 03/15/2027 1,362,996
2,250,000   Weyerhaeuser Co., Sr. Unsecd. Note, 7.375%, 03/15/2032 3,069,723
    TOTAL 9,966,950
    Capital Goods - Aerospace & Defense—1.3%  
2,940,000 1,2 BAE Systems Holdings, Inc., Sr. Unsecd. Note, Series 144A, 3.85%, 12/15/2025 3,137,480
2,005,000   Embraer Netherlands BV, Sr. Unsecd. Note, 5.05%, 06/15/2025 2,029,862
2,950,000 1,2 Embraer Overseas Ltd., Sr. Unsecd. Note, Series 144A, 5.696%, 09/16/2023 3,145,437
650,000   Embraer SA, Sr. Unsecd. Note, 5.150%, 06/15/2022 684,125
1,820,000   Lockheed Martin Corp., Sr. Unsecd. Note, 2.90%, 3/1/2025 1,889,837
1,460,000   Lockheed Martin Corp., Sr. Unsecd. Note, 3.55%, 01/15/2026 1,588,427
3,230,000 1,2 Textron Financial Corp., Jr. Sub. Note, Series 144A, 6.000%, 2/15/2067 2,269,075
760,000   Textron, Inc., Sr. Unsecd. Note, 3.875%, 3/1/2025 802,434
690,000   Textron, Inc., Sr. Unsecd. Note, 4.300%, 3/1/2024 744,483
    TOTAL 16,291,160
    Capital Goods - Building Materials—0.6%  
1,950,000   Masco Corp., Sr. Unsecd. Note, 4.375%, 04/01/2026 2,096,250
1
Principal
Amount
or Shares 		    Value
    CORPORATE BONDS—continued  
    Capital Goods - Building Materials—continued  
$3,570,000   Masco Corp., Sr. Unsecd. Note, 5.950%, 03/15/2022 $4,153,695
1,000,000   Masco Corp., Unsecd. Note, 4.45%, 4/01/2025 1,076,500
    TOTAL 7,326,445
    Capital Goods - Construction Machinery—0.2%  
2,730,000   AGCO Corp., Sr. Unsecd. Note, 5.875%, 12/01/2021 2,960,327
    Capital Goods - Diversified Manufacturing—1.3%  
859,000   General Electric Capital Corp., Sr. Unsecd. Note, Series GMTN, 3.100%, 01/09/2023 917,503
1,575,000   General Electric Capital Corp., Sr. Unsecd. Note, Series GMTN, 6.875%, 01/10/2039 2,414,237
816,000   General Electric Capital Corp., Sr. Unsecd. Note, Series MTN, 4.65%, 10/17/2021 932,190
2,100,000 1,2 Hutchison Whampoa International Ltd., Company Guarantee, Series 144A, 3.500%, 01/13/2017 2,117,854
1,000,000 1,2 Hutchison Whampoa International Ltd., Series 144A, 7.625%, 04/09/2019 1,148,001
3,970,000   Pentair Ltd., Company Guarantee, 5.000%, 5/15/2021 4,276,861
680,000   Roper Technologies, Inc., Sr. Unsecd. Note, 3.85%, 12/15/2025 722,355
2,400,000   Valmont Industries, Inc., 5.25%, 10/01/2054 2,295,391
1,487,000   Valmont Industries, Inc., Sr. Unsecd. Note, 6.625%, 04/20/2020 1,694,276
    TOTAL 16,518,668
    Capital Goods - Packaging—0.4%  
1,800,000   Packaging Corp. of America, Sr. Unsecd. Note, 3.65%, 9/15/2024 1,876,194
1,035,000   Packaging Corp. of America, Sr. Unsecd. Note, 4.500%, 11/01/2023 1,142,760
960,000   Rock-Tenn Co., Sr. Unsecd. Note, 4.450%, 03/01/2019 1,016,740
910,000   Sonoco Products Co., Sr. Unsecd. Note, 5.750%, 11/01/2040 1,105,646
    TOTAL 5,141,340
    Communications - Cable & Satellite—1.5%  
1,400,000 1,2 CCO Safari II LLC, Term Loan—1st Lien, Series 144A, 4.908%, 07/23/2025 1,546,360
1,235,000 1,2 CCO Safari II LLC, Term Loan—1st Lien, Series 144A, 6.484%, 10/23/2045 1,523,037
900,000   Comcast Corp., 7.050%, 03/15/2033 1,288,996
1,480,000   Comcast Corp., Company Guarantee, 6.500%, 01/15/2017 1,509,686
1,470,000   NBC Universal Media LLC, Sr. Unsecd. Note, 2.875%, 1/15/2023 1,541,477
1,230,000   NBC Universal, Inc., Sr. Unsecd. Note, 5.150%, 04/30/2020 1,387,628
1,250,000   NBC Universal, Inc., Sr. Unsecd. Note, 5.95%, 4/01/2041 1,712,771
1,250,000   NBC Universal, Inc., Sr. Unsecd. Note, 6.400%, 04/30/2040 1,785,885
1,310,000   Time Warner Cable, Inc., Company Guarantee, 5.500%, 09/01/2041 1,426,519
1,000,000   Time Warner Cable, Inc., Company Guarantee, 6.750%, 06/15/2039 1,236,243
360,000   Time Warner Cable, Inc., Company Guarantee, 8.750%, 02/14/2019 418,403
2,915,000   Time Warner Cable, Inc., Sr. Unsecd. Note, 4.000%, 09/01/2021 3,110,413
200,000   Time Warner Cable, Inc., Sr. Unsecd. Note, 8.375%, 03/15/2023 260,683
    TOTAL 18,748,101
    Communications - Media & Entertainment—3.8%  
2,000,000   21st Century Fox America, Inc., 6.75%, 1/9/2038 2,571,354
1,000,000   21st Century Fox America, Inc., Sr. Unsecd. Note, 3.700%, 10/15/2025 1,092,946
1,000,000   21st Century Fox America, Inc., Sr. Unsecd. Note, 5.400%, 10/01/2043 1,220,642
3,995,000 1,2 British Sky Broadcasting Group PLC, Series 144A, 3.75%, 9/16/2024 4,247,640
2,350,000   CBS Corp., 4.90%, 8/15/2044 2,559,291
1,900,000   Discovery Communications LLC, Company Guarantee, 5.050%, 06/01/2020 2,091,862
4,380,000   Grupo Televisa S.A., 6.625%, 03/18/2025 5,473,533
785,000   Grupo Televisa S.A., Sr. Unsecd. Note, 5.000%, 05/13/2045 822,350
3,000,000   Interpublic Group of Cos., Inc., Sr. Unsecd. Note, 2.250%, 11/15/2017 3,013,686
460,000   Interpublic Group of Cos., Inc., Sr. Unsecd. Note, 4.000%, 03/15/2022 483,911
2,930,000   Omnicom Group, Inc., Sr. Unsecd. Note, 3.625%, 05/01/2022 3,116,638
2
Principal
Amount
or Shares 		    Value
    CORPORATE BONDS—continued  
    Communications - Media & Entertainment—continued  
$1,730,000 1,2 Pearson Funding Five PLC, Sr. Unsecd. Note, Series 144A, 3.250%, 05/08/2023 $1,702,889
920,000   S&P Global, Inc., Sr. Note, 4.00%, 6/15/2025 1,003,809
1,500,000   S&P Global, Inc., Sr. Note, 4.40%, 2/15/2026 1,687,318
2,135,000   Time Warner, Inc., 4.850%, 7/15/2045 2,459,881
2,310,000   Time Warner, Inc., Company Guarantee, 6.250%, 03/29/2041 3,050,226
2,000,000   Viacom, Inc., 4.850%, 12/15/2034 2,025,102
1,325,000   Viacom, Inc., Sr. Unsecd. Note, 2.200%, 04/01/2019 1,329,558
675,000   Viacom, Inc., Sr. Unsecd. Note, 3.500%, 04/01/2017 683,115
2,950,000   WPP Finance 2010, 3.750%, 09/19/2024 3,156,429
2,440,000   WPP Finance 2010, Sr. Unsecd. Note, 5.125%, 09/07/2042 2,740,403
    TOTAL 46,532,583
    Communications - Telecom Wireless—0.7%  
2,900,000   American Tower Corp., 3.450%, 09/15/2021 3,044,759
950,000   American Tower Corp., Sr. Unsecd. Note, 4.500%, 01/15/2018 987,689
1,365,000   American Tower Corp., Sr. Unsecd. Note, 5.000%, 02/15/2024 1,562,473
1,500,000   Crown Castle International Corp., Sr. Unsecd. Note, 4.45%, 02/15/2026 1,657,938
490,000   Crown Castle International, Sr. Unsecd. Note, 2.250%, 09/01/2021 489,822
1,000,000   Telefonaktiebolaget LM Ericsson, Sr. Unsecd. Note, 4.125%, 05/15/2022 1,076,509
    TOTAL 8,819,190
    Communications - Telecom Wirelines—2.8%  
3,200,000   AT&T, Inc., Sr. Unsecd. Note, 2.450%, 06/30/2020 3,267,322
2,950,000   AT&T, Inc., Sr. Unsecd. Note, 3.40%, 5/15/2025 3,042,836
1,250,000   AT&T, Inc., Sr. Unsecd. Note, 4.45%, 04/01/2024 1,379,984
1,140,000   AT&T, Inc., Sr. Unsecd. Note, 4.800%, 06/15/2044 1,216,310
1,000,000   AT&T, Inc., Sr. Unsecd. Note, 5.15%, 03/15/2042 1,118,646
3,080,000   AT&T, Inc., Sr. Unsecd. Note, 6.375%, 03/01/2041 3,930,268
2,700,000   Telefonica Emisiones SAU, Company Guarantee, 5.462%, 02/16/2021 3,084,780
3,100,000   Telefonica Emisiones SAU, Sr. Unsecd. Note, 3.192%, 04/27/2018 3,180,777
6,340,000   Verizon Communications, Inc., Sr. Unsecd. Note, 4.125%, 08/15/2046 6,392,273
1,970,000   Verizon Communications, Inc., Sr. Unsecd. Note, 5.050%, 3/15/2034 2,252,772
4,880,000   Verizon Communications, Inc., Sr. Unsecd. Note, 5.150%, 09/15/2023 5,712,455
    TOTAL 34,578,423
    Consumer Cyclical - Automotive—1.5%  
1,000,000 1,2 Daimler Finance NA LLC, Sr. Unsecd. Note, Series 144A, 2.625%, 9/15/2016 1,000,472
3,000,000   Ford Motor Co., Sr. Unsecd. Note, 4.750%, 01/15/2043 3,257,490
2,850,000   Ford Motor Credit Co., Sr. Unsecd. Note, 2.375%, 01/16/2018 2,879,791
880,000   Ford Motor Credit Co., Sr. Unsecd. Note, 4.250%, 09/20/2022 952,275
960,000   General Motors Co., Sr. Unsecd. Note, 4.00%, 4/1/2025 982,539
1,125,000   General Motors Co., Sr. Unsecd. Note, 5.20%, 4/1/2045 1,202,223
1,250,000   General Motors Financial Co., Inc., Sr. Unsecd. Note, 3.200%, 07/06/2021 1,270,858
2,250,000   General Motors Financial Co., Inc., Sr. Unsecd. Note, 3.45%, 4/10/2022 2,294,415
1,580,000 1,2 Hyundai Capital America, Sr. Unsecd. Note, Series 144A, 2.60%, 3/19/2020 1,612,617
2,625,000 1,2 RCI Banque SA, Sr. Unsecd. Note, Series 144A, 3.50%, 4/3/2018 2,700,267
    TOTAL 18,152,947
    Consumer Cyclical - Leisure—0.3%  
2,800,000 1 Football Trust V, Pass Thru Cert., Series 144A, 5.35%, 10/05/2020 3,074,887
    Consumer Cyclical - Lodging—0.8%  
1,000,000   Choice Hotels International, Inc., 5.75%, 7/01/2022 1,100,000
2,900,000   Choice Hotels International, Inc., Company Guarantee, 5.700%, 08/28/2020 3,175,500
3
Principal
Amount
or Shares 		    Value
    CORPORATE BONDS—continued  
    Consumer Cyclical - Lodging—continued  
$3,930,000   Hyatt Hotels Corp., Sr. Unsecd. Note, 3.375%, 07/15/2023 $4,060,004
2,000,000   Marriott International, Inc., Sr. Unsecd. Note, 3.000%, 03/01/2019 2,059,564
    TOTAL 10,395,068
    Consumer Cyclical - Retailers—1.5%  
2,500,000   Advance Auto Parts, Inc., 4.50%, 12/1/2023 2,705,207
1,070,000   Advance Auto Parts, Inc., Company Guarantee, 4.500%, 01/15/2022 1,151,148
1,280,000   AutoNation, Inc., Sr. Unsecd. Note, 4.50%, 10/1/2025 1,359,332
1,415,000   AutoZone, Inc., Sr. Unsecd. Note, 1.300%, 01/13/2017 1,416,735
620,000   AutoZone, Inc., Sr. Unsecd. Note, 3.125%, 04/21/2026 640,275
1,215,567 1,2 CVS Health Corp., Pass Thru Cert., Series 144A, 5.298%, 1/11/2027 1,344,296
750,000   CVS Health Corp., Sr. Unsecd. Note, 2.800%, 07/20/2020 781,785
1,685,000   CVS Health Corp., Sr. Unsecd. Note, 3.875%, 7/20/2025 1,859,482
985,000   CVS Health Corp., Sr. Unsecd. Note, 5.125%, 7/20/2045 1,233,049
1,000,000   Dollar General Corp., Sr. Unsecd. Note, 3.250%, 04/15/2023 1,034,036
1,420,000   Dollar General Corp., Sr. Unsecd. Note, 4.15%, 11/01/2025 1,555,249
1,150,000   O'Reilly Automotive, Inc., Company Guarantee, 4.875%, 01/14/2021 1,266,464
890,000   O'Reilly Automotive, Inc., Sr. Unsecd. Note, 3.850%, 06/15/2023 954,986
1,340,000   Under Armour, Inc., Sr. Unsecd. Note, 3.25%, 06/15/2026 1,358,689
    TOTAL 18,660,733
    Consumer Cyclical - Services—1.7%  
2,000,000   Alibaba Group Holding Ltd., Sr. Unsecd. Note, 2.50%, 11/28/2019 2,039,780
1,460,000   Alibaba Group Holding Ltd., Sr. Unsecd. Note, 3.60%, 11/28/2024 1,535,898
7,475,000   Boston University, Series MTNA, 7.625%, 7/15/2097 9,875,208
900,000   Expedia, Inc., 4.50%, 8/15/2024 948,876
1,090,000   Expedia, Inc., Company Guarantee, 5.950%, 08/15/2020 1,222,880
1,800,000 1,2 Expedia, Inc., Series 144A, 5.000%, 02/15/2026 1,902,316
1,000,000   University of Southern California, Sr. Unsecd. Note, 5.250%, 10/01/2111 1,360,827
2,220,000   Visa, Inc., Sr. Unsecd. Note, 3.15%, 12/14/2025 2,373,475
    TOTAL 21,259,260
    Consumer Non-Cyclical - Food/Beverage—3.6%  
3,000,000   Anheuser-Busch InBev Finance, Inc., 2.65%, 2/01/2021 3,094,677
3,270,000   Anheuser-Busch InBev Finance, Inc., 3.65%, 2/1/2026 3,497,922
2,120,000   Anheuser-Busch InBev Finance, Inc., 4.900%, 02/01/2046 2,574,335
980,000 1,2 Bacardi Ltd., Sr. Unsecd. Note, Series 144A, 2.750%, 07/15/2026 977,034
1,624,000 1,2 Grupo Bimbo SAB de CV, Series 144A, 4.875%, 6/27/2044 1,698,572
1,600,000 1,2 Grupo Bimbo SAB de CV, Sr. Unsecd. Note, Series 144A, 4.500%, 01/25/2022 1,739,437
6,900,000 1,2 Kerry Group Financial Services, Sr. Unsecd. Note, Series 144A, 3.200%, 04/09/2023 6,917,767
500,000   Kraft Heinz Foods Co., Sr. Unsecd. Note, 2.800%, 07/02/2020 520,254
710,000   Kraft Heinz Foods Co., Sr. Unsecd. Note, 3.000%, 06/01/2026 721,031
2,735,000   Kraft Heinz Foods Co., Sr. Unsecd. Note, 3.950%, 07/15/2025 2,979,646
1,470,000   Kraft Heinz Foods Co., Sr. Unsecd. Note, 4.375%, 06/01/2046 1,596,676
1,465,000   Kraft Heinz Foods Co., Sr. Unsecd. Note, 5.200%, 07/15/2045 1,763,202
1,600,000   Mead Johnson Nutrition Co., Sr. Unsecd. Note, 3.000%, 11/15/2020 1,671,250
910,000   Mead Johnson Nutrition Co., Sr. Unsecd. Note, 4.125%, 11/15/2025 997,783
610,000   Molson Coors Brewing Co., Sr. Unsecd. Note, 4.200%, 07/15/2046 643,033
1,850,000   Mondelez International, Inc., Sr. Unsecd. Note, 4.000%, 02/01/2024 2,044,485
470,000   PepsiCo, Inc., 2.15%, 10/14/2020 482,095
2,250,000   PepsiCo, Inc., Sr. Unsecd. Note, 3.100%, 07/17/2022 2,393,077
1,080,000   PepsiCo, Inc., Sr. Unsecd. Note, 4.450%, 04/14/2046 1,307,946
4
Principal
Amount
or Shares 		    Value
    CORPORATE BONDS—continued  
    Consumer Non-Cyclical - Food/Beverage—continued  
$2,360,000 1,2 SABMiller Holdings, Inc., Company Guarantee, Series 144A, 2.450%, 01/15/2017 $2,370,755
1,175,000   Tyson Foods, Inc., 3.95%, 8/15/2024 1,274,151
1,000,000   Tyson Foods, Inc., 5.15%, 8/15/2044 1,218,624
1,680,000   Tyson Foods, Inc., Sr. Unsecd. Note, 4.500%, 06/15/2022 1,859,484
    TOTAL 44,343,236
    Consumer Non-Cyclical - Health Care—0.9%  
1,630,000   Agilent Technologies, Inc., Sr. Unsecd. Note, 3.200%, 10/01/2022 1,675,904
1,650,000   Agilent Technologies, Inc., Sr. Unsecd. Note, 3.875%, 07/15/2023 1,735,444
280,000 1,2 Bayer US Finance LLC, Sr. Unsecd. Note, Series 144A, 3.375%, 10/08/2024 287,421
1,050,000 1,2 Bayer US Finance LLC, Unsecd. Note, Series 144A, 2.375%, 10/08/2019 1,068,414
1,455,000   Becton Dickinson & Co., Sr. Unsecd. Note, 3.734%, 12/15/2024 1,583,776
765,000   Becton Dickinson & Co., Sr. Unsecd. Note, 4.685%, 12/15/2044 891,689
1,405,000   C.R. Bard, Inc., Sr. Unsecd. Note, 3.000%, 05/15/2026 1,438,830
575,000   Stryker Corp., Sr. Unsecd. Note, 3.500%, 03/15/2026 612,024
540,000   Zimmer Biomet Holdings, Inc., Sr. Note, 5.750%, 11/30/2039 666,527
1,350,000   Zimmer Holdings, Inc., Sr. Unsecd. Note, 3.55%, 4/01/2025 1,408,159
    TOTAL 11,368,188
    Consumer Non-Cyclical - Pharmaceuticals—1.6%  
805,000   Actavis Funding SCS, Sr. Unsecd. Note, 3.00%, 3/12/2020 832,742
750,000   Actavis Funding SCS, Sr. Unsecd. Note, 3.80%, 3/15/2025 792,878
2,760,000   Bio-Rad Laboratories, Inc., Sr. Unsecd. Note, 4.875%, 12/15/2020 3,023,586
2,390,000   Biogen Idec, Inc., Sr. Unsecd. Note, 4.05%, 9/15/2025 2,604,718
2,100,000   Celgene Corp., Sr. Unsecd. Note, 3.875%, 8/15/2025 2,272,309
2,135,000   Celgene Corp., Sr. Unsecd. Note, 5.00%, 8/15/2045 2,473,694
1,830,000   Gilead Sciences, Inc., Sr. Unsecd. Note, 3.500%, 02/01/2025 1,968,902
1,410,000   Gilead Sciences, Inc., Sr. Unsecd. Note, 3.65%, 3/01/2026 1,530,507
2,250,000   Teva Pharmaceutical Finance, Sr. Unsecd. Note, 3.15%, 10/01/2026 2,270,201
2,350,000   Teva Pharmaceutical Finance, Sr. Unsecd. Note, 4.100%, 10/01/2046 2,411,065
    TOTAL 20,180,602
    Consumer Non-Cyclical - Products—0.4%  
2,900,000   Hasbro, Inc., Sr. Unsecd. Note, 3.150%, 05/15/2021 3,000,551
2,220,000   Newell Rubbermaid, Inc., Sr. Unsecd. Note, 4.200%, 04/01/2026 2,426,216
    TOTAL 5,426,767
    Consumer Non-Cyclical - Supermarkets—0.1%  
960,000   Kroger Co., Bond, 6.900%, 04/15/2038 1,369,692
    Consumer Non-Cyclical - Tobacco—0.4%  
250,000   Altria Group, Inc., 9.250%, 08/06/2019 305,407
3,000,000   Reynolds American, Inc., Sr. Unsecd. Note, 5.85%, 8/15/2045 3,927,702
950,000   Reynolds American, Inc., Sr. Unsecd. Note, 7.000%, 8/4/2041 1,240,162
    TOTAL 5,473,271
    Energy - Independent—1.3%  
3,900,000   Anadarko Petroleum Corp., Sr. Unsecd. Note, 3.45%, 7/15/2024 3,803,015
5,890,000   Canadian Natural Resources Ltd., 5.850%, 02/01/2035 6,157,106
1,500,000   Hess Corp., Sr. Unsecd. Note, 5.600%, 02/15/2041 1,528,707
3,400,000   Marathon Oil Corp., Sr. Unsecd. Note, 3.85%, 6/01/2025 3,183,015
440,000   XTO Energy, Inc., 6.375%, 06/15/2038 630,659
775,000   XTO Energy, Inc., 6.750%, 08/01/2037 1,155,347
    TOTAL 16,457,849
5
Principal
Amount
or Shares 		    Value
    CORPORATE BONDS—continued  
    Energy - Integrated—2.4%  
$1,740,000   BP Capital Markets America, Inc., Company Guarantee, 4.200%, 06/15/2018 $1,823,341
2,000,000   BP Capital Markets PLC, 1.375%, 05/10/2018 2,004,516
1,785,000   BP Capital Markets PLC, 3.119%, 5/04/2026 1,845,103
1,480,000   BP Capital Markets PLC, Company Guarantee, 4.742%, 03/11/2021 1,674,618
1,750,000 1,2 CNPC Hong Kong Overseas Capital Ltd., Company Guarantee, Series 144A, 5.950%, 04/28/2041 2,368,765
2,100,000   Chevron Corp., Sr. Unsecd. Note, 2.100%, 05/16/2021 2,138,757
2,370,000   Husky Energy, Inc., Sr. Unsecd. Note, 3.950%, 04/15/2022 2,508,202
450,000   Husky Oil Ltd., Deb., 7.550%, 11/15/2016 452,461
4,650,000   Petro-Canada, Bond, 5.350%, 07/15/2033 5,248,148
220,000   Petro-Canada, Deb., 7.000%, 11/15/2028 291,345
1,000,000   Petroleos Mexicanos, 6.500%, 06/02/2041 1,065,100
4,180,000   Petroleos Mexicanos, Company Guarantee, 5.500%, 01/21/2021 4,504,995
2,350,000   Shell International Finance BV, Sr. Unsecd. Note, 2.875%, 05/10/2026 2,419,701
660,000   Shell International Finance BV, Sr. Unsecd. Note, Series 30 year, 4.000%, 05/10/2046 693,347
    TOTAL 29,038,399
    Energy - Midstream—1.9%  
1,652,000   Columbia Pipeline Group, Inc., Sr. Unsecd. Note, 4.500%, 06/01/2025 1,789,600
1,000,000   Columbia Pipeline Group, Inc., Sr. Unsecd. Note, 5.800%, 06/01/2045 1,206,984
3,230,000   Energy Transfer Partners LP, Sr. Unsecd. Note, 4.900%, 02/01/2024 3,357,446
2,137,000   Energy Transfer Partners LP, Sr. Unsecd. Note, 5.150%, 03/15/2045 2,058,326
2,475,000   Enterprise Products Operating LLC, Sr. Unsecd. Note, 3.75%, 2/15/2025 2,590,672
830,000 1,2 Florida Gas Transmission Co. LLC, Sr. Unsecd. Note, Series 144A, 5.450%, 07/15/2020 911,739
2,500,000   Kinder Morgan Energy Partners LP, Note, 6.550%, 09/15/2040 2,723,952
1,190,000   Kinder Morgan Energy Partners LP, Sr. Unsecd. Note, 6.375%, 03/01/2041 1,282,294
2,150,000 1,2 Texas Eastern Transmission LP, Sr. Unsecd. Note, Series 144A, 2.800%, 10/15/2022 2,147,850
2,300,000   Williams Partners LP, 4.90%, 1/15/2045 2,196,406
3,100,000   Williams Partners LP, 5.250%, 03/15/2020 3,337,872
    TOTAL 23,603,141
    Energy - Oil Field Services—0.4%  
700,000   Nabors Industries, Inc., Company Guarantee, 5.000%, 09/15/2020 693,221
2,500,000   Nabors Industries, Inc., Sr. Unsecd. Note, 4.625%, 09/15/2021 2,383,755
1,350,000   Nabors Industries, Inc., Sr. Unsecd. Note, 5.100%, 09/15/2023 1,217,638
210,000   Noble Drilling Corp., Sr. Note, 7.500%, 03/15/2019 212,220
990,000   Noble Holding International Ltd., Company Guarantee, 4.900%, 08/01/2020 873,675
    TOTAL 5,380,509
    Energy - Refining—0.7%  
875,000   Marathon Petroleum Corp., Sr. Unsecd. Note, 3.625%, 09/15/2024 887,841
720,000   Marathon Petroleum Corp., Sr. Unsecd. Note, 6.500%, 03/01/2041 811,399
1,665,000   Valero Energy Corp., 7.500%, 04/15/2032 2,096,977
3,870,000   Valero Energy Corp., 9.375%, 03/15/2019 4,579,336
    TOTAL 8,375,553
    Financial Institution - Banking—11.2%  
2,000,000   Associated Banc-Corp., Sub., 4.25%, 1/15/2025 2,093,754
3,000,000   BB&T Corp., Series MTN, 2.45%, 1/15/2020 3,076,353
2,445,000   BB&T Corp., Sr. Unsecd. Note, Series MTN, 2.250%, 02/01/2019 2,493,098
5,000,000   Bank of America Corp., Sr. Unsecd. Note, 2.00%, 1/11/2018 5,031,865
6,395,000   Bank of America Corp., Sr. Unsecd. Note, 5.875%, 01/05/2021 7,374,842
1,850,000   Bank of America Corp., Sr. Unsecd. Note, Series MTN, 4.00%, 4/1/2024 2,003,265
8,400,000   Bank of America Corp., Sr. Unsecd. Note, Series MTN, 5.625%, 07/01/2020 9,490,765
6
Principal
Amount
or Shares 		    Value
    CORPORATE BONDS—continued  
    Financial Institution - Banking—continued  
$2,100,000   Bank of America Corp., Sub. Note, Series L, 3.95%, 4/21/2025 $2,189,678
4,750,000 6 Bear Stearns Cos., Inc., Sr. Unsecd. Note, 7.250%, 02/01/2018 5,129,853
1,730,000   Capital One Bank, Sr. Unsecd. Note, Series BKNT, 2.150%, 11/21/2018 1,744,508
5,500,000   Capital One Bank, Sub. Note, 3.375%, 02/15/2023 5,659,120
1,200,000   Capital One Financial Corp., Sr. Sub., 4.20%, 10/29/2025 1,255,865
990,000   Citigroup, Inc., 4.125%, 7/25/2028 1,009,020
2,800,000   Citigroup, Inc., 4.300%, 11/20/2026 2,946,482
4,000,000   Citigroup, Inc., Sr. Note, 5.375%, 08/09/2020 4,502,496
1,910,000   Citigroup, Inc., Sr. Unsecd. Note, 3.400%, 05/01/2026 1,969,202
1,470,000   Citigroup, Inc., Sr. Unsecd. Note, 4.450%, 01/10/2017 1,486,451
1,000,000   Citigroup, Inc., Sr. Unsecd. Note, 4.500%, 01/14/2022 1,107,050
3,500,000 1,2 Citizens Financial Group, Inc., Sub. Note, Series 144A, 4.15%, 9/28/2022 3,622,692
1,450,000   City National Corp., Sr. Unsecd. Note, 5.250%, 09/15/2020 1,636,970
1,000,000   Comerica, Inc., 3.80%, 7/22/2026 1,037,124
2,625,000   Compass Bank, Birmingham, Sub. Note, Series BKNT, 3.875%, 4/10/2025 2,556,771
2,900,000   Goldman Sachs Group, Inc., Sr. Unsecd. Note, 6.125%, 02/15/2033 3,661,549
4,200,000   Goldman Sachs Group, Inc., Sr. Unsecd. Note, 6.250%, 02/01/2041 5,576,311
2,100,000   Goldman Sachs Group, Inc., Sub. Note, 6.345%, 02/15/2034 2,553,680
1,680,000   Huntington Bancshares, Inc., Sub. Note, 7.000%, 12/15/2020 1,958,472
870,000   JPMorgan Chase & Co., Sub. Deb., 8.00%, 4/29/2027 1,183,416
740,000   JPMorgan Chase & Co., Sub. Note, 3.375%, 5/1/2023 764,425
7,500,000   JPMorgan Chase & Co., Sub., 3.875%, 9/10/2024 7,930,185
3,975,000   Manufacturers & Traders Trust Co., Sub. Note, Series BKNT, 5.629%, 12/1/2021 3,913,387
3,280,000   Morgan Stanley, Sr. Unsecd. Note, 6.375%, 07/24/2042 4,517,734
2,000,000   Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 5.50%, 7/24/2020 2,257,736
4,240,000   Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 6.625%, 04/01/2018 4,569,953
1,500,000   Morgan Stanley, Sr. Unsecd. Note, Series MTN, 5.95%, 12/28/2017 1,587,644
1,500,000   Morgan Stanley, Sub. Note, 3.950%, 4/23/2027 1,561,788
4,320,000   Morgan Stanley, Sub. Note, Series MTN, 4.100%, 05/22/2023 4,587,170
8,030,000   Murray Street Investment Trust I, Sr. Unsecd. Note, 4.647%, 03/09/2017 8,190,520
2,000,000   PNC Bank National Association, Series MTN, 2.15%, 4/29/2021 2,028,304
500,000 1,2 PNC Preferred Funding LLC, Jr. Sub. Note, Series 144A, 2.302%, 03/29/2049 474,375
3,564,854 1,5 Regional Diversified Funding, Series 144A, 9.250%, 03/15/2030 1,688,386
890,000   Regions Financial Corp., Sr. Unsecd. Note, 3.200%, 02/08/2021 923,639
2,700,000   MUFG Union Bank, N.A., Sr. Unsecd. Note, 2.625%, 9/26/2018 2,752,739
1,130,000   Vesey Street Investment Trust I, Sr. Unsecd. Note, 4.404%, 09/01/2016 1,130,000
1,655,000   Wells Fargo & Co., Sub. Note, Series GMTN, 4.900%, 11/17/2045 1,898,679
3,550,000   Wilmington Trust Corp., Sub. Note, 8.500%, 04/02/2018 3,914,770
    TOTAL 139,042,086
    Financial Institution - Broker/Asset Mgr/Exchange—2.1%  
2,500,000 1,2 Cantor Fitzgerald LP, Bond, Series 144A, 7.875%, 10/15/2019 2,770,640
4,255,000 1,2 FMR LLC, Bond, Series 144A, 7.570%, 06/15/2029 5,853,144
590,000   Invesco Finance PLC, Sr. Unsecd. Note, 3.75%, 1/15/2026 634,589
1,650,000   Jefferies Group LLC, Sr. Unsecd. Note, 6.500%, 01/20/2043 1,745,763
3,725,000   Jefferies Group LLC, Sr. Unsecd. Note, 6.875%, 04/15/2021 4,277,339
1,294,000   Raymond James Financial, Inc., Sr. Unsecd. Note, 5.625%, 04/01/2024 1,493,563
2,990,000   Raymond James Financial, Inc., Sr. Unsecd. Note, 8.600%, 08/15/2019 3,520,453
805,000   Stifel Financial Corp., 4.25%, 7/18/2024 821,068
1,170,000   Stifel Financial Corp., Sr. Unsecd. Note, 3.50%, 12/1/2020 1,189,678
7
Principal
Amount
or Shares 		    Value
    CORPORATE BONDS—continued  
    Financial Institution - Broker/Asset Mgr/Exchange—continued  
$2,400,000   TD Ameritrade Holding Corp., Sr. Unsecd. Note, 3.625%, 4/1/2025 $2,592,562
975,000 1,2 TIAA Asset Management Finance Co. LLC, Sr. Unsecd. Note, Series 144A, 4.125%, 11/1/2024 1,027,899
    TOTAL 25,926,698
    Financial Institution - Finance Companies—1.9%  
783,000   Discover Bank, Sub., Series BKNT, 8.700%, 11/18/2019 909,023
2,517,000   Discover Financial Services, Sr. Unsecd. Note, 3.850%, 11/21/2022 2,605,108
2,236,000   GE Capital International Funding Co., Sr. Unsecd. Note, 3.373%, 11/15/2025 2,444,549
5,606,000   GE Capital International Funding Co., Sr. Unsecd. Note, 4.418%, 11/15/2035 6,430,076
3,072,000   HSBC Finance Corp., Sr. Sub. Note, 6.676%, 01/15/2021 3,546,332
1,500,000 1,2 Lukoil International Finance BV, Series 144A, 6.356%, 6/7/2017 1,550,250
2,000,000 1,2 Macquarie Group Ltd., Sr. Unsecd. Note, Series 144A, 6.000%, 01/14/2020 2,218,044
3,250,000   Susa Partnership LP, Sr. Unsecd. Note, 8.20%, 6/1/2017 3,424,480
    TOTAL 23,127,862
    Financial Institution - Insurance - Health—0.8%  
2,010,000   Aetna, Inc., Sr. Unsecd. Note, 3.200%, 06/15/2026 2,050,974
1,310,000   Aetna, Inc., Sr. Unsecd. Note, 4.375%, 06/15/2046 1,367,780
2,000,000   UnitedHealth Group, Inc., Sr. Unsecd. Note, 3.100%, 03/15/2026 2,111,320
1,685,000   UnitedHealth Group, Inc., Sr. Unsecd. Note, 3.75%, 7/15/2025 1,868,426
1,145,000   UnitedHealth Group, Inc., Sr. Unsecd. Note, 4.75%, 07/15/2045 1,422,224
740,000   Wellpoint, Inc., 5.850%, 01/15/2036 932,893
    TOTAL 9,753,617
    Financial Institution - Insurance - Life—2.0%  
2,750,000   AXA-UAP, Sub. Note, 8.600%, 12/15/2030 3,874,612
3,100,000   Aflac, Inc., Sr. Unsecd. Note, 3.625%, 06/15/2023 3,342,243
1,720,000   Lincoln National Corp., Sr. Note, 7.000%, 06/15/2040 2,245,531
700,000 1,2 Massachusetts Mutual Life Insurance Co., Sub. Note, Series 144A, 5.375%, 12/01/2041 839,981
2,360,000 1,2 Massachusetts Mutual Life Insurance Co., Sub. Note, Series 144A, 8.875%, 06/01/2039 3,765,970
1,000,000   MetLife, Inc., Jr. Sub. Note, 10.75%, 8/01/2039 1,612,500
700,000 1,2 New York Life Insurance Co., Sub. Note, Series 144A, 6.750%, 11/15/2039 983,088
4,000,000 1,2 Pacific LifeCorp., Bond, Series 144A, 6.600%, 09/15/2033 5,175,984
1,000,000 1,2 Penn Mutual Life Insurance Co., Sr. Note, Series 144A, 7.625%, 06/15/2040 1,331,307
1,530,000   Prudential Financial, Inc., Series MTN, 6.625%, 12/1/2037 2,007,845
    TOTAL 25,179,061
    Financial Institution - Insurance - P&C—1.5%  
1,210,000   Berkshire Hathaway, Inc., Sr. Unsecd. Note, 3.125%, 03/15/2026 1,286,517
1,000,000   CNA Financial Corp., Sr. Unsecd. Note, 5.750%, 08/15/2021 1,150,548
920,000   CNA Financial Corp., Sr. Unsecd. Note, 5.875%, 08/15/2020 1,042,404
700,000   CNA Financial Corp., Sr. Unsecd. Note, 7.350%, 11/15/2019 804,511
1,000,000   Hartford Financial Services Group, Inc., Sr. Unsecd. Note, 6.625%, 04/15/2042 1,281,881
850,000 1,2 Liberty Mutual Group, Inc., Company Guarantee, Series 144A, 5.000%, 06/01/2021 942,133
2,880,000 1,2 Liberty Mutual Group, Inc., Series 144A, 4.85%, 8/1/2044 3,082,899
1,360,000 1,2 Liberty Mutual Group, Inc., Series 144A, 4.950%, 05/01/2022 1,517,121
3,400,000 1,2 Nationwide Mutual Insurance Co., Sub. Note, Series 144A, 9.375%, 08/15/2039 5,465,888
1,000,000 1,2 USF&G Corp., Series 144A, 8.312%, 07/01/2046 1,364,047
    TOTAL 17,937,949
    Financial Institution - REIT - Apartment—0.6%  
2,000,000   Mid-America Apartment Communities LP, Sr. Unsecd. Note, 3.750%, 06/15/2024 2,105,184
2,160,000   Post Apartment Homes LP, Sr. Unsecd. Note, 3.375%, 12/01/2022 2,216,916
920,000   UDR, Inc., Company Guarantee, 4.625%, 01/10/2022 1,015,643
8
Principal
Amount
or Shares 		    Value
    CORPORATE BONDS—continued  
    Financial Institution - REIT - Apartment—continued  
$1,600,000   UDR, Inc., Sr. Unsecd. Note, Series MTN, 2.950%, 09/01/2026 $1,610,141
    TOTAL 6,947,884
    Financial Institution - REIT - Healthcare—0.4%  
1,250,000   Health Care REIT, Inc., Sr. Unsecd. Note, 4.00%, 6/1/2025 1,339,751
500,000   Health Care REIT, Inc., Sr. Unsecd. Note, 4.125%, 04/01/2019 527,080
1,000,000   Health Care REIT, Inc., Sr. Unsecd. Note, 6.125%, 04/15/2020 1,135,379
2,300,000   Healthcare Trust of America, 3.700%, 04/15/2023 2,378,425
    TOTAL 5,380,635
    Financial Institution - REIT - Office—0.3%  
1,450,000   Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 3.900%, 06/15/2023 1,513,246
1,450,000   Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 4.600%, 04/01/2022 1,571,296
    TOTAL 3,084,542
    Financial Institution - REIT - Other—0.5%  
2,285,000   Host Hotels & Resorts LP, Sr. Unsecd. Note, Series E, 4.00%, 6/15/2025 2,354,103
370,000   Liberty Property LP, 6.625%, 10/01/2017 388,452
1,000,000   ProLogis LP, Sr. Unsecd. Note, 4.250%, 08/15/2023 1,110,306
1,890,000   WP Carey, Inc., Sr. Unsecd. Note, 4.600%, 04/01/2024 1,979,949
    TOTAL 5,832,810
    Financial Institution - REIT - Retail—0.9%  
2,600,000   Equity One, Inc., Sr. Unsecd. Note, 3.75%, 11/15/2022 2,666,555
380,000   Kimco Realty Corp., Sr. Unsecd. Note, 3.40%, 11/1/2022 398,637
500,000   Realty Income Corp., Sr. Unsecd. Note, 6.750%, 08/15/2019 569,540
1,700,000   Regency Centers LP, Company Guarantee, 4.800%, 04/15/2021 1,874,400
1,860,000   Tanger Properties LP, Sr. Unsecd. Note, 3.125%, 09/01/2026 1,861,525
2,300,000   Tanger Properties LP, Sr. Unsecd. Note, 3.875%, 12/01/2023 2,440,132
1,000,000   Tanger Properties LP, Sr. Unsecd. Note, 6.125%, 06/01/2020 1,136,820
    TOTAL 10,947,609
    Municipal Services—0.5%  
1,807,749 1,2 Army Hawaii Family Housing, Series 144A, 5.524%, 6/15/2050 2,206,521
2,880,000 1,2 Camp Pendleton & Quantico Housing LLC, Series 144A, 5.572%, 10/01/2050 3,423,254
    TOTAL 5,629,775
    Sovereign—0.1%  
1,100,000   Corp Andina De Fomento, Sr. Unsecd. Note, 4.375%, 06/15/2022 1,219,636
    Technology—3.3%  
2,840,000   Adobe Systems, Inc., Sr. Unsecd. Note, 3.250%, 02/01/2025 2,998,032
1,470,000   Autodesk, Inc., Sr. Unsecd. Note, 4.375%, 6/15/2025 1,557,158
920,000   Automatic Data Processing, Inc., 3.375%, 9/15/2025 1,005,620
1,400,000   Corning, Inc., Unsecd. Note, 4.750%, 03/15/2042 1,500,562
1,250,000 1,2 Diamond 1 Finance Corp./Diamond 2 Finance Corp., Term Loan—1st Lien, Series 144A, 6.02%, 06/15/2026 1,342,417
1,565,000 1,2 Diamond 1 Finance Corp./Diamond 2 Finance Corp., Term Loan—1st Lien, Series 144A, 8.35%, 07/15/2046 1,828,322
1,620,000   Equifax, Inc., Sr. Unsecd. Note, 3.250%, 06/01/2026 1,681,435
2,000,000   Fidelity National Information Services, Inc., Sr. Unsecd. Note, 3.500%, 04/15/2023 2,107,152
1,265,000   Fidelity National Information Services, Inc., Sr. Unsecd. Note, 3.875%, 06/05/2024 1,356,123
2,500,000   Fiserv, Inc., Sr. Unsecd. Note, 3.85%, 6/01/2025 2,705,695
1,565,000   Flextronics International Ltd., Sr. Unsecd. Note, 4.75%, 6/15/2025 1,664,279
1,240,000 1,2 Hewlett Packard Enterprise Co., Sr. Unsecd. Note, Series 144A, 3.600%, 10/15/2020 1,296,789
1,030,000 1,2 Hewlett Packard Enterprise Co., Sr. Unsecd. Note, Series 144A, 4.900%, 10/15/2025 1,100,341
2,540,000   Ingram Micro, Inc., Sr. Unsecd. Note, 5.000%, 08/10/2022 2,655,153
1,625,000   Intel Corp., Sr. Unsecd. Note, 4.90%, 7/29/2045 1,979,131
9
Principal
Amount
or Shares 		    Value
    CORPORATE BONDS—continued  
    Technology—continued  
$3,325,000   Keysight Technologies, Inc., 4.55%, 10/30/2024 $3,461,648
1,000,000   Microsoft Corp., Sr. Unsecd. Note, 2.400%, 08/08/2026 1,005,065
1,290,000   Microsoft Corp., Sr. Unsecd. Note, 3.700%, 08/08/2046 1,343,821
2,100,000 1,2 Molex Electronics Technologies LLC, Unsecd. Note, Series 144A, 3.90%, 4/15/2025 2,131,273
975,000   SAIC, Inc., Company Guarantee, 5.95%, 12/01/2040 954,343
445,000   Total System Services, Inc., Sr. Unsecd. Note, 4.800%, 04/01/2026 492,385
1,380,000   Verisk Analytics, Inc., Sr. Unsecd. Note, 4.125%, 09/12/2022 1,473,643
2,490,000   Verisk Analytics, Inc., Sr. Unsecd. Note, 5.500%, 06/15/2045 2,714,857
200,000   Verisk Analytics, Inc., Unsecd. Note, 4.00%, 6/15/2025 212,571
    TOTAL 40,567,815
    Transportation - Airlines—0.2%  
1,995,000   Southwest Airlines Co., Deb., 7.375%, 03/01/2027 2,614,593
    Transportation - Railroads—0.8%  
3,095,000   Burlington Northern Santa Fe Corp., Deb., 5.750%, 05/01/2040 4,159,993
817,481   Burlington Northern Santa Fe Corp., Pass Thru Cert., Series 99-2, 7.57%, 1/2/2021 893,793
2,265,000   Canadian Pacific Railway Co., Sr. Unsecd. Note, 2.900%, 02/01/2025 2,322,425
1,325,000   Kansas City Southern Industries, Inc., Sr. Unsecd. Note, 3.000%, 05/15/2023 1,351,762
810,000   Union Pacific Corp., Sr. Unsecd. Note, 3.875%, 2/01/2055 852,189
    TOTAL 9,580,162
    Transportation - Services—1.0%  
1,580,000 1,2 Enterprise Rent-A-Car USA Finance Co., Series 144A, 6.375%, 10/15/2017 1,662,149
4,440,000 1,2 Enterprise Rent-A-Car USA Finance Co., Sr. Unsecd. Note, Series 144A, 5.625%, 03/15/2042 5,455,681
950,000 1,2 Penske Truck Leasing Co. LP & PTL Finance Corp., Series 144A, 2.500%, 06/15/2019 958,122
1,750,000   Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 2.450%, 11/15/2018 1,776,225
925,000   Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 2.500%, 03/01/2018 937,230
1,200,000   Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 3.50%, 6/1/2017 1,219,427
    TOTAL 12,008,834
    Utility - Electric—3.3%  
990,000   Ameren Corp., Sr. Unsecd. Note, 3.65%, 2/15/2026 1,062,979
300,000   Avista Corp., 1st Mtg. Bond, 5.950%, 06/01/2018 318,119
347,507   Bruce Mansfield Unit 1 2, Pass Thru Cert., 6.850%, 06/01/2034 285,390
1,530,000   Cleveland Electric Illuminating Co., Sr. Unsecd. Note, 5.950%, 12/15/2036 1,780,383
1,180,000   Commonwealth Edison Co., 1st Mtg. Bond, 6.150%, 09/15/2017 1,240,108
1,233,000   Consolidated Edison Co., 4.625%, 12/01/2054 1,462,238
400,000   Duke Energy Corp., Sr. Unsecd. Note, 1.800%, 09/01/2021 399,431
1,210,000   Duke Energy Corp., Sr. Unsecd. Note, 2.650%, 09/01/2026 1,206,740
1,330,000   Duke Energy Corp., Sr. Unsecd. Note, 3.750%, 09/01/2046 1,339,867
100,000   Duke Energy Indiana, Inc., 1st Mtg. Bond, 6.350%, 08/15/2038 142,123
5,000,000 1,2 Electricite de France SA, Jr. Sub. Note, Series 144A, 5.625%, 12/29/2049 4,982,500
840,000 1,2 Emera US Finance LP, Sr. Unsecd. Note, Series 144A, 3.550%, 06/15/2026 885,835
1,280,000 1,2 Emera US Finance LP, Sr. Unsecd. Note, Series 144A, 4.75%, 06/15/2046 1,415,098
4,100,000   Exelon Generation Co. LLC, Sr. Unsecd. Note, 4.250%, 06/15/2022 4,396,446
900,000   Exelon Generation Co. LLC, Sr. Unsecd. Note, 5.750%, 10/01/2041 984,532
1,055,000   Great Plains Energy, Inc., Note, 4.850%, 06/01/2021 1,153,152
381,325 1,2 Great River Energy, 1st Mtg. Note, Series 144A, 5.829%, 7/01/2017 392,152
3,060,000   MidAmerican Energy Holdings Co., Sr. Unsecd. Note, 5.950%, 05/15/2037 4,046,807
1,645,000   National Rural Utilities Cooperative Finance Corp., Sr. Unsecd. Note, 10.375%, 11/01/2018 1,953,159
3,100,000   NextEra Energy Capital Holdings, Inc., Sr. Unsecd. Note, 2.400%, 09/15/2019 3,153,983
1,500,000   NextEra Energy Capital Holdings, Inc., Sr. Unsecd. Note, 3.625%, 06/15/2023 1,589,765
10
Principal
Amount
or Shares 		    Value
    CORPORATE BONDS—continued  
    Utility - Electric—continued  
$850,000   PSEG Power LLC, Sr. Unsecd. Note, 4.150%, 09/15/2021 $909,293
200,000   South Carolina Electric and Gas, 1st Mtg. Bond, 6.500%, 11/01/2018 221,821
3,185,000   Southern Co., Sr. Unsecd. Note, 3.25%, 07/01/2026 3,326,615
2,460,000   UIL Holdings Corp., Sr. Unsecd. Note, 4.625%, 10/01/2020 2,634,168
74,755   Waterford 3 Funding Corp., 8.090%, 01/02/2017 74,679
    TOTAL 41,357,383
    Utility - Natural Gas—1.3%  
195,000   Atmos Energy Corp., 8.500%, 03/15/2019 227,502
3,080,000   Enbridge, Inc., Sr. Note, 5.600%, 04/01/2017 3,159,991
2,600,000   National Fuel Gas Co., Sr. Unsecd. Note, 3.750%, 03/01/2023 2,634,619
2,425,000   National Fuel Gas Co., Sr. Unsecd. Note, 4.900%, 12/01/2021 2,620,433
400,000   Sabine Pass LNG LP, Sr. Secd. Note, 7.500%, 11/30/2016 405,750
2,700,000   Sempra Energy, Sr. Unsecd. Note, 3.550%, 06/15/2024 2,863,523
1,300,000   Sempra Energy, Sr. Unsecd. Note, 6.000%, 10/15/2039 1,696,296
2,230,000 1,2 Southeast Supply Header LLC, Sr. Unsecd. Note, Series 144A, 4.250%, 06/15/2024 2,253,330
    TOTAL 15,861,444
    TOTAL CORPORATE BONDS
(IDENTIFIED COST $794,432,269) 		856,225,757
    MORTGAGE-BACKED SECURITIES—0.0%  
1,452   Federal Home Loan Mortgage Corp., Pool C00702, 6.00%, 1/1/2029 1,649
1,619   Federal Home Loan Mortgage Corp., Pool C00748, 6.00%, 4/1/2029 1,845
474   Federal Home Loan Mortgage Corp., Pool C20263, 6.00%, 1/1/2029 543
1,251   Federal Home Loan Mortgage Corp., Pool C25621, 6.50%, 5/1/2029 1,443
126   Federal National Mortgage Association, Pool 313324, 9.00%, 6/1/2017 129
2,383   Federal National Mortgage Association, Pool 323159, 7.50%, 4/1/2028 2,802
1,927   Federal National Mortgage Association, Pool 421223, 7.00%, 5/1/2028 2,246
15,813   Federal National Mortgage Association, Pool 439947, 6.50%, 11/1/2028 18,227
8,391   Federal National Mortgage Association, Pool 489867, 6.50%, 3/1/2029 9,651
2,085   Government National Mortgage Association, Pool 449491, 7.50%, 12/15/2027 2,484
942   Government National Mortgage Association, Pool 486467, 7.00%, 8/15/2028 1,116
3,347   Government National Mortgage Association, Pool 780339, 8.00%, 12/15/2023 3,835
112   Government National Mortgage Association, Pool 780340, 9.00%, 11/15/2017 112
2,116   Government National Mortgage Association, Pool 780373, 7.00%, 12/15/2023 2,382
    TOTAL MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $42,076) 		48,464
    MUNICIPAL BONDS—0.5%  
    Municipal Services—0.5%  
4,720,000   Chicago, IL, Taxable Project and Refunding Series 2012B GO Bonds, 5.432%, 1/1/2042 4,344,335
1,765,000   Tampa, FL Sports Authority, 8.02% (GTD by National Public Finance Guarantee Corporation), 10/1/2026 2,112,370
    TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $6,507,945) 		6,456,705
    COMMON STOCK—0.0%  
    Energy - Refining—0.0%  
20,487 3,5 MLR Petroleum LLC
(IDENTIFIED COST $9,520) 		614
    PREFERRED STOCKS—0.5%  
    Financial Institution - Broker/Asset Mgr/Exchange—0.0%  
130,000 3,4,5 Lehman Brothers Holdings, Pfd., Series D, 5.670% 1,300
11
Principal
Amount
or Shares 		    Value
    PREFERRED STOCKS—continued  
    Financial Institution - REIT - Other—0.5%  
80,000   ProLogis, Inc., Cumulative REIT Perpetual Pfd. Stock, Series Q, $4.27, Annual Dividend $5,600,000
    TOTAL PREFERRED STOCKS
(IDENTIFIED COST $3,985,290) 		5,601,300
    COLLATERALIZED MORTGAGE OBLIGATION—0.0%  
    Federal Home Loan Mortgage Corporation—0.0%  
$201,340   Federal Home Loan Mortgage Corp. REMIC 3051 MY, 5.500%, 10/15/2025
(IDENTIFIED COST $197,480) 		219,185
    INVESTMENT COMPANIES—28.7%7  
18,382,381   Federated Institutional Prime Value Obligations Fund, Institutional Shares, 0.31%8 18,382,381
53,228,833   High Yield Bond Portfolio 336,406,228
    TOTAL INVESTMENT COMPANIES
(IDENTIFIED COST $443,603,629) 		354,788,609
    TOTAL INVESTMENTS—98.9%
(IDENTIFIED COST $1,248,778,209)9 		1,223,340,634
    OTHER ASSETS AND LIABILITIES - NET—1.1%10 13,258,489
    TOTAL NET ASSETS—100% $1,236,599,123
At August 31, 2016, the Fund had the following outstanding futures contracts:
Description Number of
Contracts 		Notional
Value 		Expiration
Date 		Unrealized
Appreciation
3United States Treasury Notes 10-Year Short Futures 100 $13,092,188 December 2016 $33,377
The average notional value of short futures contracts held by the Fund throughout the period was $22,543,359. This is based on the contracts held as of each month-end throughout the nine-month fiscal period.
Unrealized Appreciation on Futures Contracts is included in “Other Assets and Liabilities - Net.”
1 Denotes a restricted security 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) is subject to a contractual restriction on public sales. At August 31, 2016, these restricted securities amounted to $136,383,677, which represented 11.0% of total net assets.
2 Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Directors (the “Directors”). At August 31, 2016, these liquid restricted securities amounted to $131,620,404, which represented 10.6% of total net assets.
Additional information on restricted securities, excluding securities purchased under Rule 144A that have been deemed liquid by the Directors, if applicable, held at August 31, 2016, is as follows:
Security Acquisition Date Cost Market Value
Football Trust V, Pass Thru Cert., Series 144A, 5.35%, 10/05/2020 3/24/2010 $2,800,000 $3,074,887
Regional Diversified Funding, Series 144A, 9.250%, 03/15/2030 3/10/2000 $3,485,643 $1,688,386
3 Non-income-producing security.
4 Issuer in default.
5 Market quotations and price evaluations are not available. Fair value determined in accordance with procedures established by and under the general supervision of the Directors.
6 JPMorgan Chase has fully and unconditionally guaranteed Bear Stearns' outstanding registered debt securities.
7 Affiliated holdings.
12
Transactions involving the affiliated holding during the period ended August 31, 2016, were as follows:
  Federated
Institutional
Prime Value
Obligations Fund,
Institutional Shares 		High Yield
Bond Portfolio 		Total of
Affiliated
Transactions
Balance of Shares Held 11/30/2015 10,320,813 56,722,662 67,043,475
Purchases/Additions 146,978,220 1,938,469 148,916,689
Sales/Reductions (138,916,652) (5,432,298) (144,348,950)
Balance of Shares Held 8/31/2016 18,382,381 53,228,833 71,611,214
Value $18,382,381 $336,406,228 $354,788,609
Dividend Income $21,977 $16,714,003 $16,735,980
8 7-day net yield.
9 At August 31, 2016, the cost of investments for federal tax purposes was $1,248,778,209. The net unrealized depreciation of investments for federal tax purposes excluding any unrealized appreciation resulting from futures contracts was $25,437,575. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $71,660,993 and net unrealized depreciation from investments for those securities having an excess of cost over value of $97,098,568.
10 Assets, other than investments in securities, less liabilities.
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
■ Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Directors.
■ Fixed-income securities and repurchase agreements acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium), unless the issuer's creditworthiness is impaired or other factors indicate that amortized cost is not an accurate estimate of the investment's fair value, in which case it would be valued in the same manner as a longer-term security.
■ Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs.
■ Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
■ 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 Directors.
■ For securities that are fair valued in accordance with procedures established by and under the general supervision of the Directors, 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, or 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, 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 Directors have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Directors have appointed a valuation committee (“Valuation Committee”) comprised of officers of the Fund, Federated Investment Management Company (“Adviser”) and certain of the Adviser's affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Directors 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 Directors. The Directors periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
13
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 Directors.
The Directors 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 Directors 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 Directors. The Directors have ultimate responsibility for any fair valuations made in response to a significant event.
Note: The categories of investments are shown as a percentage of total net assets at August 31, 2016.
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.
14
The following is a summary of the inputs used, as of August 31, 2016, 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
Equity Securities:        
Common Stocks        
International $— $— $614 $614
 Preferred Stocks        
 Domestic 5,600,000 — 1,300 5,601,300
Debt Securities:        
Corporate Bonds — 854,537,371 1,688,386 856,225,757
Mortgage-backed Securities — 48,464 — 48,464
Municipal Bonds — 6,456,705 — 6,456,705
Collateralized Mortgage Obligations — 219,185 — 219,185
Investment Companies1 18,382,381 — — 354,788,609
TOTAL SECURITIES $23,982,381 $861,261,725 $1,690,300 $1,223,340,634
Other Financial Instruments2        
Assets $33,377 $— $— $33,377
Liabilities — — — —
TOTAL OTHER FINANCIAL INSTRUMENTS $33,377 $— $— $33,377
1 As permitted by U.S. generally accepted accounting principles (GAAP), Investment Companies valued at $336,406,228 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 High Yield Bond Portfolio is the next determined NAV after receipt of a shareholder redemption request.
2 Other financial instruments include futures contracts.
The following acronyms are used throughout this portfolio:
GO —General Obligation
GTD —Guaranteed
MTN —Medium Term Note
REIT(s) —Real Estate Investment Trust(s)
REMIC —Real Estate Mortgage Investment Conduit
15

 

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 Investment Series Funds, Inc.

 

By /S/ Lori A. Hensler

 

Lori A. Hensler

Principal Financial Officer

 

Date October 24, 2016

 

 

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 October 24, 2016

 

 

By /S/ Lori A. Hensler

 

Lori A. Hensler

Principal Financial Officer

 

Date October 24, 2016