N-CSR 1 form.htm

United States

Securities and Exchange Commission

Washington, D.C. 20549

 

Form N-CSR

Certified Shareholder Report of Registered Management Investment Companies

 

 

 

 

811-7141

 

(Investment Company Act File Number)

 

Federated Hermes World Investment Series, Inc.

_______________________________________________________________

 

(Exact Name of Registrant as Specified in Charter)

 

 

 

Federated Hermes Funds

4000 Ericsson Drive

Warrendale, Pennsylvania 15086-7561

(Address of Principal Executive Offices)

 

 

(412) 288-1900

(Registrant's Telephone Number)

 

 

Peter J. Germain, Esquire

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15222-3779

(Name and Address of Agent for Service)

(Notices should be sent to the Agent for Service)

 

 

 

 

 

 

Date of Fiscal Year End: 11/30/20

 

 

Date of Reporting Period: 11/30/20

 

 

 

 

 

 

 

 

 

Item 1.Reports to Stockholders

 

 

 

Annual Shareholder Report
November 30, 2020
Share Class | Ticker
A | IHIAX
C | IHICX
Institutional | EMDIX
 

Federated Hermes Emerging Market Debt Fund
(formerly, Federated Emerging Market Debt Fund)
Fund Established 1996

A Portfolio of Federated Hermes World Investment Series, Inc.
(formerly, Federated World Investment Series, Inc.)
Dear Valued Shareholder,
I am pleased to present the Annual Shareholder Report for your fund covering the period from December 1, 2019 through November 30, 2020.
While Covid-19 continues to present challenges to our lives, families and businesses, I want you to know that Federated Hermes remains dedicated to helping you successfully navigate the markets ahead. You can count on us for the insights, investment management knowledge and client service that you have come to expect. Please refer to our website, FederatedInvestors.com, for timely updates on this and other economic and market matters.
Thank you for investing with us. I hope you find this information useful and look forward to keeping you informed.
Sincerely,
J. Christopher Donahue, President

Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee

Management’s Discussion of Fund Performance (unaudited)
The total return of Federated Hermes Emerging Market Debt Fund (the “Fund”), based on net asset value for the 12-month reporting period ended November 30, 2020, was 5.83% for the Class A Shares, 5.20% for Class C Shares and 6.21% for the Institutional Shares. The total return of the Fund’s Blended Index1 was 4.38% during the reporting period. The Blended Index is equally weighted among the following indexes: J.P. Morgan Emerging Markets Bond Index Global (JPM-EMBIG), J.P. Morgan Corporate Emerging Markets Bond Index and J.P. Morgan Government Bond Index-Emerging Markets-Unhedged.2 The total return for the JPM-EMBIG, the Fund’s broad-based securities market index, was 5.96% during the same period. The total return of the Morningstar Emerging Markets Bond Funds Average (MEMBFA),3 a peer group average for the Fund, was 5.05% during the same period. The Fund’s and the MEMBFA’s total returns for the most recently completed fiscal year reflected actual cash flows, transaction costs and other expenses, which were not reflected in the total return of any index.
The most influential components affecting the Fund’s performance relative to the Blended Index were: (1) currency exposure (an allocation to non-U.S. dollar currencies)4 (2) asset allocation (i.e., corporate, sovereign and quasi-sovereign debt);5 and (3) security selection.
The following discussion will focus on the performance of the Fund’s Institutional Shares relative to the Blended Index.
MARKET OVERVIEW
Global markets during the reporting period can largely be characterized by one term that has become common to our lexicon: COVID-19. The initial outbreak of the COVID-19 pandemic and associated worldwide containment efforts led to a deep global slowdown of consumer spending and industrial activity. Unlike previous shocks, the pandemic detrimentally impacted consumer spending segments and severely disturbed established supply chains. At the same time, oil prices plummeted due to the combination of dramatic demand reductions and an untimely price war between Saudi Arabia and Russia. In response, central banks unleashed unprecedented infusions of liquidity in parallel with massive fiscal stimulus programs by national governments. This resulted in a cushioning of asset prices, an overall enhanced risk sentiment and an incipient recovery in economic activity. As the year progressed, oil prices witnessed a significant rebound as a result of hints to a resumption in economic interests as well as the coordination of supply cuts by reluctant global producers.
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1

Another cause for market uncertainty during the reporting period was the highly anticipated and politically-charged U.S. presidential campaign, with Americans casting their votes in early November. Despite the intense partisan landscape and strong debate surrounding the implications of large-scale mail-in voting, the results of the election translated into an electoral certainty in favor of former Vice President Joe Biden. With that being said, however, the “blue wave” expected by pollsters and pundits failed to materialize. Instead, the Democratic Party witnessed its majority in the House of Representatives significantly reduced, while Republicans attempted to maintain their majority in the U.S. Senate (subject to the results of two Senate run-off races scheduled for early January 2021). With a divided Congress, the base case scenario, the market’s eyes have now turned to the prospect of a compromise in Washington to provide further economic stimulus measures.
Hopes for a vaccine breakthrough, coupled with better medical treatments for the virus, served as positive drivers behind risk markets during the second half of the year. In mid-November, the news the world had been waiting for arrived, as a number of potential vaccine trials produced high levels of efficacy. Following such announcements, governments have focused on quickly providing required approvals for the vaccines and implementing their logistical objectives. As a result, the first doses of the vaccines were distributed in December 2020.
In addition, stimulus plans instituted across global economies provided momentum to global spending and buffered commodity prices. In addition to government stimulus programs, corporate balance sheets and corporate sales activity were in focus during the year. Sales recovered as consumers adapted to the new environment of social distancing and increased the use of online sales channels. Corporations, for the most part, took significant actions to preserve liquidity and strengthen their respective balance sheet positions. It should be noted that entering the crisis, companies benefited from far stronger balance sheets and funding sources compared to previous cycles. Furthermore, multinational organizations and development funds (e.g. International Monetary Fund (IMF)) were considerably proactive throughout the current situation.
Although not immune to the effects of the pandemic, Latin American countries took decisive remedial measures to help stimulate the region’s economies during the crisis. In Argentina and Ecuador, discussions with debtholders progressed and agreements were achieved with bondholders. Despite deals being reached in both countries, the economic trajectory in Ecuador seems more favorable compared to Argentina. The agreement in Argentina followed a very argumentative back-and-forth between bondholders and the Fernandez administration. Argentina’s environment was marred by high inflation, a large fiscal deficit and declining reserves. As a result, Argentina continued to discourage the prospects of foreign direct investments. Dialogues with the IMF continued for both countries. Additionally, countries
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2

including Brazil, Chile, Colombia and Peru have benefited from the tailwinds of a recovery in commodity prices following the rendering of stimulus in China. In particular, Chile was recently aided by a robust resurgence in copper prices due to a combination of greater demand from China and well-founded concerns surrounding potential supply shortages. Furthermore, Mexico experienced a sharp contraction exacerbated by the lack of any substantial government support. Mexico, however, did benefit to some degree as a result of its corporate sector’s heavy U.S. sales-based presence.
In the Europe, Middle East and Africa regions, economic data improved as the year progressed following the easing of lockdown measures and a resolution concerning the Russia-Saudi oil price war. The focal point of the pandemic and associated containment measures shifted away from China, with the country now being the largest contributor towards a global recovery. Across regions, high-frequency data such as retail sales, investment data and industrial output all continue to see improvement. These increases were largely expected and were the result of the large stimulus packages deployed by governments, as well as the presence of pent-up demand during the lockdowns. Central banks across the region also took a pause on the aggressive monetary easing that was very much front loaded at the onset of the pandemic. Although a strong easing bias is very much the order of the day, aggressive rate cutting and an expansion of bond-buying programs have largely been shelved. Regional central banks remain wary of currency weakness and the ensuing inflation pass-through effects from a weakening currency. On the fiscal front, governments have taken stock of the extraordinary measures already undertaken. Various countries have implemented supplementary budgets that have re-prioritized expenditures, raised new revenues, and increased borrowing plans. The IMF has also played a crucial role in stabilizing the external position of many countries, especially in the frontier space. The provision of Rapid Financing Instruments to several countries such as Ukraine, Egypt, Nigeria and South Africa have been key to stabilizing their reserves and external balance sheets.
currency
The Fund’s Blended Index had a 33% exposure to non-U.S. dollar currencies. During the reporting period, Fund management actively managed the fund’s local currency exposure between 10% and 30%. Changing the exposure several times during the reporting period contributed positively to performance on an absolute basis as well as relative to the Blended Index. Overweight and underweight allocations to the Brazilian real, Mexican peso and Russian ruble contributed positively to performance. A consistent long position in the Egyptian pound and an underweight position in the Turkish lira also contributed positively to Fund performance.
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3

asset allocation
Fund management actively allocated the Fund’s assets between corporate, sovereign and quasi-sovereign debt. During the reporting period, corporate and quasi-sovereign debt outperformed sovereign debt. Fund Management had more of the Fund’s assets allocated to corporate and quasi-sovereign debt relative to the Blended Index, which contributed positively to relative Fund performance.
Security Selection
With the onset of the COVID-19 pandemic, volatility increased and many securities experienced significant price movement. Fund management was early to recognize the market dislocation and the attractive value in some hard-hit securities. Fund management capitalized on the market condition and actively transacted in several affected securities. The strategy was successful as market conditions improved and prices stabilized.
1
Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the Blended Index.
2
Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the indexes that comprise the Blended index.
3
Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the MEMBFA.
4
International investing involves special risks including currency risk, increased volatility, political risks and differences in auditing and other financial standards. Prices of emerging market securities can be significantly more volatile than the prices of securities in developed countries, and currency risk and political risks are accentuated in emerging markets.
5
Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices.
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4

FUND PERFORMANCE AND GROWTH OF A $10,000 INVESTMENT
The graph below illustrates the hypothetical investment of $10,0001 in the Federated Hermes Emerging Market Debt Fund from November 30, 2010 to November 30, 2020, compared to a blend of indexes comprised of an equal weighting of the J.P. Morgan Emerging Markets Bond Index Global (JPM-EMBIG), J.P. Morgan Corporate Emerging Market Bond Index and J.P. Morgan Government Bond Index-Emerging Markets-Unhedged (the “Blended Index”)2 and the Morningstar Emerging Markets Bond Funds Average (MEMBFA).3 The Average Annual Total Return table below shows returns for each class averaged over the stated periods.
Growth of a $10,000 Investment
Growth of $10,000 as of November 30, 2020
■ Total returns shown for the Class C Shares include the maximum contingent deferred sales charge of 1.00% as applicable.
■ Total returns shown for the Class A Shares include the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550).
The Fund offers multiple share classes whose performance may be greater than or less than its other share class(es) due to differences in sales charges and expenses.
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5

Average Annual Total Returns for the Period Ended 11/30/2020
(returns reflect all applicable sales charges and contingent deferred sales charge as specified below in footnote #1)
 
1 Year
5 Years
10 Years
Class A Shares
1.11%
3.76%
3.44%
Class C Shares
4.20%
3.97%
3.14%
Institutional Shares4
6.21%
5.01%
4.14%
JPM-EMBIG
5.96%
6.14%
5.75%
MEMBFA3
5.05%
5.72%
4.74%
Blended Index
4.38%
6.09%
5.36%
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month-end performance and after-tax returns, visit FederatedInvestors.com or call 1-800-341-7400. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured.
1
Represents a hypothetical investment of $10,000 in the Fund after deducting applicable sales charges: For Class A Shares, the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550); For Class C Shares, the maximum contingent deferred sales charge is 1.00% on any redemption less than or equal to one year from the purchase date. The Fund’s performance assumes the reinvestment of all dividends and distributions. The JPM-EMBIG has been adjusted to reflect reinvestment of dividends on securities in the index.
2
The JPM-EMBIG tracks total returns for traded external debt instruments in the emerging markets. The J.P. Morgan Corporate Emerging Market Bond Index is a global, corporate emerging markets benchmark that tracks U.S.-denominated corporate bonds issued by emerging markets entities. The J.P. Morgan Government Bond Index-Emerging Markets-Unhedged tracks local currency government bonds issued by emerging markets. The indexes are not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund’s performance. The indexes are unmanaged and, unlike the Fund, are not affected by cash flows. It is not possible to invest directly in an index.
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3
Morningstar figures represent the average of the total returns reported by all the mutual funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. The Morningstar figures in the Growth of $10,000 line graph are based on historical return information published by Morningstar and reflect the return of the funds comprising the category in the year of publication. Because the funds designated by Morningstar as falling into the category can change over time, the Morningstar figures in the line graph may not match the Morningstar figures in the Average Annual Total Returns table, which reflect the return of the funds that currently comprise the category.
4
The Fund’s Institutional Shares commenced operations on March 30, 2012. For the period prior to commencement of operations of the Institutional Shares, the performance information shown is for the Fund’s Class A Shares. The performance for Class A Shares has not been adjusted to reflect the expenses of the Institutional Shares since the Institutional Shares are estimated to have a lower expense ratio than the expense ratio of the Class A Shares. The performance of the Class A Shares has been adjusted to remove any voluntary waiver of Fund expenses related to the Class A Shares that may have occurred during the period prior to commencement of operations of the Institutional Shares.
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7

Portfolio of Investments Summary Table (unaudited)
At November 30, 2020, the Fund’s issuer country exposure composition was as follows:
Country
Exposure as a
Percentage of
Total Net Assets1
China
13.3%
Brazil
13.0%
Mexico
9.2%
Russia
8.1%
Turkey
6.8%
South Africa
5.4%
Saudi Arabia
4.2%
Egypt
3.7%
Ukraine
3.6%
United Arab Emirates
3.2%
Argentina
2.5%
Bahrain
2.1%
Nigeria
1.9%
Belarus
1.8%
Ghana
1.8%
Poland
1.4%
Angola
1.0%
Qatar
1.0%
Other2
13.9%
Cash Equivalents3
1.8%
Derivative Contracts4
0.2%
Other Assets and LiabilitiesNet5
0.1%
TOTAL
100%
1
This table depicts the Fund’s exposure to various countries through its investment in foreign fixed-income securities, along with the Fund’s holdings of cash equivalents and other assets and liabilities. With respect to foreign corporate fixed-income securities, country allocations are based primarily on the country in which the issuing company (the “Issuer”) has registered the security. However, the Fund’s Adviser may allocate the Issuer to a country based on other factors such as the location of the Issuer’s head office, the jurisdiction of the Issuer’s incorporation, the location of the principal trading market for the Issuer’s securities or the country from which a majority of the Issuer’s revenue is derived.
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2
For purposes of this table, issuer country exposure which constitutes less than 1.00% of the Fund’s total net assets have been aggregated under the designation of “Other.”
3
Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. This does not include cash held in the Fund that is denominated in foreign currencies. See the Statement of Assets and Liabilities for information regarding the Fund’s foreign cash position.
4
Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund’s performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract’s significance to the portfolio. More complete information regarding the Fund’s direct investments in derivative contracts, including unrealized appreciation (depreciation), value and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report.
5
Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities.
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9

Portfolio of Investments
November 30, 2020
Principal
Amount,
Foreign
Currency
Par Amount,
or Shares
 
 
Value in
U.S. Dollars
 
 
FOREIGN GOVERNMENTS/AGENCIES—53.1%
 
 
 
Sovereign—53.1%
 
$200,000
 
Angola, Government of, Sr. Unsecd. Note, 144A,
8.000%, 11/26/2029
$174,464
200,000
 
Angola, Government of, Sr. Unsecd. Note, REGS,
9.125%, 11/26/2049
171,340
205,503
 
Argentina, Government of, Sr. Unsecd. Note,
0.125%, 7/9/2030
80,557
521,997
 
Argentina, Government of, Sr. Unsecd. Note,
0.125%, 7/9/2035
184,004
550,000
 
Argentina, Government of, Sr. Unsecd. Note,
0.125%, 7/9/2041
201,025
50,000
 
Argentina, Government of, Sr. Unsecd. Note,
0.125%, 7/9/2046
17,900
173,180
 
Argentina, Government of, Unsecd. Note, 0.125%, 7/9/2030
64,511
22,899
 
Argentina, Government of, Unsecd. Note, 1.000%, 7/9/2029
9,217
200,000
 
Bahrain, Government of, Sr. Unsecd. Note, REGS,
7.000%, 1/26/2026
230,986
200,000
 
Bahrain, Government of, Sr. Unsecd. Note, REGS,
7.000%, 10/12/2028
228,982
200,000
 
Belarus, Government of, Sr. Unsecd. Note, 144A,
5.875%, 2/24/2026
200,707
BRL 4,300,000
 
Brazil, Government of, Series NTNF, 10.000%, 1/1/2021
840,355
9,900,000
 
Brazil, Government of, Series NTNF, 10.000%, 1/1/2025
2,141,557
$200,000
 
Cameroon, Government of, Sr. Unsecd. Note, 144A,
9.500%, 11/19/2025
217,380
CNY 3,000,000
 
China, Government of, Sr. Unsecd. Note, Series 1827,
3.250%, 11/22/2028
455,435
8,000,000
 
China, Government of, Series 1916, 3.120%, 12/5/2026
1,215,487
COP 850,000,000
 
Colombia, Government of, Sr. Unsecd. Note, Series B,
6.000%, 4/28/2028
251,571
$44,500
 
Ecuador, Government of, Sr. Secd. Note, 144A,
0.500%, 7/31/2030
28,057
29,024
1
Ecuador, Government of, Sr. Unsecd. Note, 144A,
0.000%, 7/31/2030
12,698
113,500
 
Ecuador, Government of, Sr. Unsecd. Note, 144A,
0.500%, 7/31/2040
55,558
Annual Shareholder Report
10

Principal
Amount,
Foreign
Currency
Par Amount,
or Shares
 
 
Value in
U.S. Dollars
 
 
FOREIGN GOVERNMENTS/AGENCIES—continued
 
 
 
Sovereign—continued
 
EGP 3,100,000
2
Egypt Treasury Bill, Unsecd. Note, Series 364D,
13.201%, 5/4/2021
$187,252
$200,000
 
Egypt, Government of, Sr. Unsecd. Note, 144A,
5.250%, 10/6/2025
205,938
EUR 100,000
 
Egypt, Government of, Sr. Unsecd. Note, 144A,
6.375%, 4/11/2031
122,079
$200,000
 
Egypt, Government of, Sr. Unsecd. Note, 144A,
7.052%, 1/15/2032
211,064
200,000
 
Egypt, Government of, Sr. Unsecd. Note, 144A,
8.700%, 3/1/2049
218,979
200,000
 
Egypt, Government of, Sr. Unsecd. Note, 144A,
8.875%, 5/29/2050
222,190
EGP 800,000
2
Egypt, Government of, Unsecd. Deb., Series 364D,
13.258%, 2/2/2021
49,895
$200,000
 
El Salvador, Government of, Sr. Unsecd. Note, REGS,
7.650%, 6/15/2035
175,400
200,000
 
Gabon, Government of, Sr. Secd. Note, 144A,
6.625%, 2/6/2031
196,278
200,000
 
Ghana, Government of, Sr. Unsecd. Note, REGS,
7.875%, 3/26/2027
209,700
200,000
 
Ghana, Government of, Unsecd. Note, REGS,
10.750%, 10/14/2030
258,614
IDR 400,000,000
 
Indonesia, Government of, Sr. Unsecd. Note, Series FR72,
8.250%, 5/15/2036
31,433
EUR 100,000
 
Ivory Coast, Government of, Sr. Unsecd. Note, 144A,
5.875%, 10/17/2031
128,082
$122,010
 
Ivory Coast, Government of, Sr. Unsecd. Note, REGS,
5.750%, 12/31/2032
122,195
200,000
 
Jordan, Government of, Sr. Unsecd. Note, 144A,
5.850%, 7/7/2030
213,282
200,000
 
Kenya, Government of, REGS, 6.875%, 6/24/2024
216,136
200,000
1,3
Lebanon, Government of, Sr. Unsecd. Note,
6.000%, 1/27/2023
27,800
MXN 2,800,000
 
Mex Bonos Desarr Fix Rt, Sr. Unsecd. Note, Series M,
7.750%, 11/23/2034
159,207
27,500,000
 
Mexico, Government of, Sr. Unsecd. Note, Series M,
5.750%, 3/5/2026
1,402,156
8,800,000
 
Mexico, Government of, Sr. Unsecd. Note, Series M,
7.250%, 12/9/2021
447,763
Annual Shareholder Report
11

Principal
Amount,
Foreign
Currency
Par Amount,
or Shares
 
 
Value in
U.S. Dollars
 
 
FOREIGN GOVERNMENTS/AGENCIES—continued
 
 
 
Sovereign—continued
 
$200,000
 
Nigeria, Government of, Sr. Unsecd. Note, REGS,
6.500%, 11/28/2027
$209,750
200,000
 
Pakistan, Government of, Sr. Secd. Note, REGS,
6.875%, 12/5/2027
206,000
25,000
 
Peru, Government of, 2.780%, 12/1/2060
24,688
25,000
 
Peru, Government of, Sr. Unsecd. Note, 1.862%, 12/1/2032
24,800
25,000
 
Peru, Government of, Sr. Unsecd. Note, 3.230%, 7/28/2121
24,688
PEN 700,000
 
Peru, Government of, Sr. Unsecd. Note, 6.150%, 8/12/2032
229,325
PLN 1,600,000
 
Poland, Government of, Unsecd. Note, Series 0726,
2.500%, 7/25/2026
469,885
$230,000
 
Qatar, Government of, Sr. Unsecd. Note, 144A,
4.817%, 3/14/2049
318,263
200,000
 
Romania, Government of, Sr. Unsecd. Note, 144A,
4.000%, 2/14/2051
218,500
RUB 45,000,000
 
Russia, Government of, Series 6212, 7.050%, 1/19/2028
642,053
42,800,000
 
Russia, Government of, Unsecd. Note, Series 6222,
7.100%, 10/16/2024
602,121
$200,000
 
Saudi Arabia, Government of, Sr. Unsecd. Note, 144A,
4.500%, 4/22/2060
254,500
200,000
 
Saudi Arabia, Government of, Sr. Unsecd. Note, REGS,
4.500%, 10/26/2046
245,250
200,000
 
Senegal, Government of, Sr. Unsecd. Note, 144A,
6.750%, 3/13/2048
216,452
ZAR 8,000,000
 
South Africa, Government of, Series R209, 6.250%, 3/31/2036
353,315
$200,000
 
South Africa, Government of, Sr. Unsecd. Note,
5.750%, 9/30/2049
192,525
200,000
 
Sri Lanka, Government of, Sr. Unsecd. Note, REGS,
6.750%, 4/18/2028
115,728
200,000
 
Turkey, Government of, Sr. Unsecd. Note, 5.250%, 3/13/2030
193,112
200,000
 
Turkey, Government of, Sr. Unsecd. Note, 5.600%, 11/14/2024
204,242
200,000
 
Turkey, Government of, Sr. Unsecd. Note, 6.125%, 10/24/2028
205,128
200,000
 
Ukraine, Government of, Sr. Unsecd. Note, 144A,
7.253%, 3/15/2033
212,200
200,000
 
Ukraine, Government of, Sr. Unsecd. Note, REGS,
7.750%, 9/1/2025
219,704
325,000
1
Ukraine, Government of, Unsecd. Note, Series GDP, 144A,
0.000%, 5/31/2040
321,588
UYU 3,400,000
 
Uruguay, Government of, 144A, 9.875%, 6/20/2022
82,455
Annual Shareholder Report
12

Principal
Amount,
Foreign
Currency
Par Amount,
or Shares
 
 
Value in
U.S. Dollars
 
 
FOREIGN GOVERNMENTS/AGENCIES—continued
 
 
 
Sovereign—continued
 
$200,000
 
Uzbekistan, Government of, Unsecd. Note, 144A,
4.750%, 2/20/2024
$213,213
1,500,000
1,3
Venezuela, Government of, 8.250%, 10/13/2024
135,000
 
 
TOTAL FOREIGN GOVERNMENTS/AGENCIES
(IDENTIFIED COST $20,828,541)
17,721,719
 
 
CORPORATE BONDS—43.2%
 
 
 
Banking—11.4%
 
200,000
 
Akbank TAS, 144A, 7.200%, 3/16/2027
196,822
200,000
 
Akbank TAS, Sr. Unsecd. Note, 144A, 6.800%, 2/6/2026
208,178
200,000
 
Akbank TAS, Sub. Note, REGS, 6.797%, 4/27/2028
192,750
200,000
4
Alfa Bank (Alfa Bond), Jr. Sub. Note, 8.000%, 2/3/2022
209,550
200,000
 
Alfa Bank (Alfa Bond), Sub. Deb., 144A, 5.950%, 4/15/2030
208,960
ARS 1,800,000
5
Banco Hipotecario SA, Unsecd. Note, 144A, 35.750%
(30-35 Day Argentina Dep Rates BADLAR Priv Bks ARS
+4.000%), 11/7/2022
21,390
$15,000
 
Bank of China Ltd., Sub. Note, REGS, 5.000%, 11/13/2024
16,769
200,000
 
BBVA Bancomer SA Mexico, Jr. Sub. Note, 144A,
5.350%, 11/12/2029
206,500
200,000
 
Credit Bank of Moscow Via CBOM Finance PLC, Sr. Unsecd.
Note, 144A, 4.700%, 1/29/2025
205,232
200,000
 
Development Bank of Mongolia, Sr. Unsecd. Note, 144A,
7.250%, 10/23/2023
213,240
200,000
 
Development Bank of the Republic of Belarus JSC, Sr. Unsecd.
Note, 144A, 6.750%, 5/2/2024
200,460
200,000
4
DIB Tier 1 Sukuk 2 Ltd., Jr. Sub. Note, 6.750%, 1/20/2021
201,054
200,000
 
MTN Mauritius Investment Ltd., Sr. Unsecd. Note, 144A,
5.373%, 2/13/2022
205,930
200,000
4
National Bank of Oman, Jr. Sub. Deb., 6.651%, 5/18/2021
186,500
150,000
 
Pampa Energia SA, Sr. Unsecd. Note, 144A,
7.500%, 1/24/2027
123,769
200,000
4
SovCo Capital Partners BV, Jr. Sub. Note, 144A,
7.750%, 5/6/2025
201,010
200,000
 
TBC Bank JSC, Sr. Unsecd. Note, 144A, 5.750%, 6/19/2024
205,500
200,000
 
Turkiye Sinai Kalkinma Bankasi AS, Sr. Unsecd. Note, 144A,
6.000%, 1/23/2025
198,341
200,000
 
Turkiye Vakiflar Bankasi T.A.O., Sr. Unsecd. Note, 144A,
5.250%, 2/5/2025
193,747
200,000
 
Turkiye Vakiflar Bankasi T.A.O., Sr. Unsecd. Note, 144A,
8.125%, 3/28/2024
211,704
Annual Shareholder Report
13

Principal
Amount,
Foreign
Currency
Par Amount,
or Shares
 
 
Value in
U.S. Dollars
 
 
CORPORATE BONDS—continued
 
 
 
Banking—continued
 
$200,000
 
Wanda Properties International Co., Sr. Unsecd. Note,
7.250%, 1/29/2024
$198,720
 
 
TOTAL
3,806,126
 
 
Chemicals & Plastics—3.3%
 
200,000
 
Braskem Netherlands Finance BV, Sr. Unsecd. Note, REGS,
4.500%, 1/10/2028
207,400
200,000
 
CNAC HK Finbridge Co. Ltd., Sr. Unsecd. Note,
4.125%, 7/19/2027
206,280
200,000
 
CNAC HK Finbridge Co. Ltd., Sr. Unsecd. Note,
4.875%, 3/14/2025
213,660
200,000
 
Groupe Office Cherifien des Phosphates SA, 144A,
6.875%, 4/25/2044
256,481
200,000
 
Sasol Financing USA LLC, Sr. Unsecd. Note,
5.875%, 3/27/2024
206,950
 
 
TOTAL
1,090,771
 
 
Conglomerates—0.6%
 
200,000
 
Turkiye Sise ve Cam Fabrikalari AS, Sr. Unsecd. Note, REGS,
6.950%, 3/14/2026
216,465
 
 
Finance—1.3%
 
200,000
 
MDC-GMTN BV, Sr. Unsecd. Note, 144A, 3.700%, 11/7/2049
229,548
200,000
4
CNRC Capitale Ltd., Sr. Unsecd. Note, 3.900%, 6/2/2022
200,500
 
 
TOTAL
430,048
 
 
Financial Intermediaries—0.6%
 
200,000
 
ICD Funding Ltd., Sr. Unsecd. Note, 4.625%, 5/21/2024
213,875
 
 
Food Products—1.3%
 
200,000
 
JBS Investments II GmbH, Sr. Unsecd. Note, 144A,
5.750%, 1/15/2028
213,877
200,000
 
Ulker Biskuvi Sanayi AS, Sr. Unsecd. Note, 144A,
6.950%, 10/30/2025
212,950
 
 
TOTAL
426,827
 
 
Metals & Mining—2.6%
 
200,000
 
CSN Islands XI Corp., Sr. Unsecd. Note, 144A,
6.750%, 1/28/2028
209,950
200,000
 
Metinvest BV, Sr. Unsecd. Note, 144A, 7.650%, 10/1/2027
210,187
200,000
 
Metinvest BV, Sr. Unsecd. Note, REGS, 7.750%, 4/23/2023
212,365
200,000
 
Minmetals Bounteous Finance BVI Ltd., Sr. Unsecd. Note,
4.200%, 7/27/2026
223,815
 
 
TOTAL
856,317
Annual Shareholder Report
14

Principal
Amount,
Foreign
Currency
Par Amount,
or Shares
 
 
Value in
U.S. Dollars
 
 
CORPORATE BONDS—continued
 
 
 
Oil & Gas—8.3%
 
$200,000
 
ADES International Holding PLC, Sec. Fac. Bond, REGS,
8.625%, 4/24/2024
$196,010
200,000
4
GAZPROM PJSC (GAZ FN), Sub., 144A, 4.598%,10/26/2025
208,979
200,000
 
Oil & Gas Holdings, Sr. Unsecd. Note, 144A,
7.625%, 11/7/2024
220,981
55,000
 
Petrobras Global Finance BV, Sr. Unsecd. Note,
5.093%, 1/15/2030
60,423
100,000
 
Petrobras Global Finance BV, Sr. Unsecd. Note,
5.600%, 1/3/2031
113,318
100,000
 
Petrobras Global Finance BV, Sr. Unsecd. Note,
6.750%, 6/3/2050
118,088
250,000
 
Petrobras Global Finance BV, Sr. Unsecd. Note,
6.850%, 6/5/2115
295,375
1,000,000
1,3
Petroleos de Venezuela, S.A., Unsecd. Note, REGS,
6.000%, 5/16/2024
38,500
100,000
 
Petroleos Mexicanos, Sr. Unsecd. Note, 4.875%, 1/24/2022
102,149
450,000
 
Petroleos Mexicanos, Sr. Unsecd. Note, 5.950%, 1/28/2031
419,062
100,000
 
Petroleos Mexicanos, Sr. Unsecd. Note, 6.500%, 3/13/2027
100,886
217,000
 
Petroleos Mexicanos, Sr. Unsecd. Note, Series WI,
6.350%, 2/12/2048
181,933
12,500
 
Petroleum Co. of Trinidad and Tobago Ltd., Sr. Unsecd. Note,
REGS, 6.000%, 5/8/2022
12,648
200,000
 
Saudi Arabian Oil Co. (Aramco), Sr. Unsecd. Note, 144A,
4.375%, 4/16/2049
243,394
200,000
 
SEPLAT Petroleum Development Co. PLC, Sr. Unsecd. Note,
144A, 9.250%, 4/1/2023
205,408
200,000
 
Tullow Oil PLC, Sr. Unsecd. Note, 144A, 7.000%, 3/1/2025
128,500
200,000
 
YPF Sociedad Anonima, Sr. Unsecd. Note, REGS,
7.000%, 12/15/2047
128,586
 
 
TOTAL
2,774,240
 
 
Pharmaceuticals—0.6%
 
200,000
 
Teva Pharmaceutical Finance Netherlands III BV, Sr. Unsecd.
Note, 2.800%, 7/21/2023
196,840
 
 
Real Estate—4.2%
 
200,000
 
China Evergrande Group, Sec. Fac. Bond, 6.250%, 6/28/2021
191,500
200,000
 
China Evergrande Group, Sec. Fac. Bond, 7.500%, 6/28/2023
160,997
200,000
 
China Great Wall International Holdings III Ltd., Sr. Unsecd.
Note, Series EMTN, 3.875%, 8/31/2027
219,005
Annual Shareholder Report
15

Principal
Amount,
Foreign
Currency
Par Amount,
or Shares
 
 
Value in
U.S. Dollars
 
 
CORPORATE BONDS—continued
 
 
 
Real Estate—continued
 
$200,000
 
Dar Al-Arkan Sukuk Co. Ltd., Sr. Unsecd. Note,
6.875%, 3/21/2023
$200,502
200,000
 
Esic Sukuk Ltd, Sr. Unsecd. Note, Series EMTN,
3.939%, 7/30/2024
203,320
200,000
 
Longfor Properties, Sr. Unsecd. Note, 3.875%, 7/13/2022
207,137
200,000
 
Yanlord Land Group Ltd., Sr. Unsecd. Note,
5.875%, 1/23/2022
203,500
 
 
TOTAL
1,385,961
 
 
Retailers—0.6%
 
200,000
 
Eurotorg (Bonitron DAC), Sr. Unsecd. Note, 144A,
9.000%, 10/22/2025
209,040
 
 
Technology Services—1.3%
 
200,000
 
Baidu, Inc., Sr. Unsecd. Note, 3.425%, 4/7/2030
223,210
200,000
 
Xiaomi Best Time International Ltd., Sr. Unsecd. Note, 144A,
3.375%, 4/29/2030
212,014
 
 
TOTAL
435,224
 
 
Telecommunications & Cellular—3.2%
 
200,000
 
HTA Group Ltd., Sr. Unsecd. Note, 144A, 7.000%, 12/18/2025
215,604
200,000
 
IHS Netherlands Holdco BV, Sr. Unsecd. Note, 144A,
8.000%, 9/18/2027
216,500
200,000
 
Liquid Telecommunications Financing PLC, Sec. Fac. Bond,
144A, 8.500%, 7/13/2022
204,980
200,000
 
Veon Holdings BV, Sr. Unsecd. Note, 144A, 4.000%, 4/9/2025
210,517
200,000
 
Veon Holdings BV, Sr. Unsecd. Note, REGS,
7.250%, 4/26/2023
221,975
 
 
TOTAL
1,069,576
 
 
Transportation—0.7%
 
200,000
 
DP World Ltd., Sr. Unsecd. Note, 144A, 4.700%, 9/30/2049
221,900
 
 
Utilities—3.2%
 
200,000
 
ACWA Power Management and Investments One Ltd., Sec.
Fac. Bond, REGS, 5.950%, 12/15/2039
238,700
200,000
 
Eskom Holdings Ltd., REGS, 6.750%, 8/6/2023
205,150
400,000
 
Eskom Holdings Ltd., Unsecd. Note, REGS,
7.125%, 2/11/2025
411,160
200,000
 
Yingde Gases Investment Ltd., 144A, 6.250%, 1/19/2023
206,007
 
 
TOTAL
1,061,017
 
 
TOTAL CORPORATE BONDS
(IDENTIFIED COST $14,246,107)
14,394,227
Annual Shareholder Report
16

Principal
Amount,
Foreign
Currency
Par Amount,
or Shares
 
 
Value in
U.S. Dollars
 
 
EXCHANGE-TRADED FUND—1.0%
 
2,849
 
iShares JP Morgan USD Emerging Markets Bond Fund
(IDENTIFIED COST $322,542)
$325,498
 
 
COMMON STOCKS—0.6%
 
 
 
Food Products—0.2%
 
17,584
 
JBS S.A.
75,983
 
 
Metals & Mining—0.2%
 
4,534
 
Vale SA, ADR
66,015
 
 
Oil & Gas—0.2%
 
6,656
 
Petroleo Brasileiro SA, ADR
63,698
 
 
TOTAL COMMON STOCKS
(IDENTIFIED COST $204,643)
205,696
 
 
INVESTMENT COMPANY—1.8%
 
591,109
 
Federated Hermes Institutional Prime Value Obligations Fund,
Institutional Shares, 0.08% 6
(IDENTIFIED COST $591,371)
591,346
 
 
TOTAL INVESTMENT IN SECURITIES99.7%
(IDENTIFIED COST $36,193,204)7
33,238,486
 
 
OTHER ASSETS AND LIABILITIES - NET0.3%8
102,013
 
 
TOTAL NET ASSETS100%
$33,340,499
At November 30, 2020, the Fund had the following open swap contracts:
CREDIT DEFAULT SWAPS
Counter-
party
Reference
Entity
Buy/
Sell
Pay/
Receive
Fixed
Rate
Expiration
Date
Implied
Credit
Spread at
11/30/20209
Notional
Amount
Market
Value
Upfront
Premiums
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
OTC Swaps:
Morgan
Stanley
Republic
of Brazil
Sell
1.00%
12/20/2025
1.67%
$(400,000)
$(12,707)
$(24,404)
$11,697
Barclays
Republic of
Indonesia
Sell
1.00%
12/20/2025
0.73%
$(100,000)
$1,348
$(749)
$2,097
Barclays
Sultanate
of Oman
Buy
1.00%
12/20/2025
4.11%
$200,000
$26,695
$30,489
$(3,794)
TOTAL CREDIT DEFAULT SWAPS
$15,336
$5,336
$10,000
Annual Shareholder Report
17

At November 30, 2020, the Fund had the following outstanding foreign exchange contracts:
Settlement Date
Counterparty
Foreign Currency
Units to
Receive/Deliver
In
Exchange
For
Unrealized
Appreciation
(Depreciation)
Contracts Purchased:
12/2/2020
Bank of America
$32,000
3,307,258 JPY
$321
12/2/2020
BNY Mellon
$32,000
26,934 EUR
$(128)
12/2/2020
JPMorgan
1,800,000 BRL
$325,020
$10,964
12/2/2020
JPMorgan
1,800,000 BRL
$322,297
$13,687
12/2/2020
JPMorgan
3,800,000 BRL
$684,917
$24,383
12/2/2020
JPMorgan
8,690,000 BRL
$1,626,275
$(4,219)
12/14/2020
BNY Mellon
$32,000
26,928 EUR
$(139)
12/14/2020
Credit Agricole
$32,000
3,333,270 JPY
$60
12/16/2020
Bank of America
3,360,000 CZK
$144,833
$7,893
12/16/2020
Bank of America
14,365,000 RUB
$184,831
$2,968
12/16/2020
BNP Paribas
2,950,000 PLN
$786,376
$(285)
12/16/2020
BNP Paribas
25,200,000 RUB
$324,065
$5,383
12/16/2020
Citibank
3,760,000 CZK
$161,676
$9,232
12/16/2020
Citibank
11,300,000 CZK
$503,068
$10,564
12/16/2020
Citibank
27,200,000 HUF
$87,246
$3,205
12/16/2020
Citibank
680,000 RON
$161,533
$4,730
12/16/2020
Citibank
695,000 RON
$165,403
$4,528
12/16/2020
Citibank
1,490,000 RON
$359,343
$4,969
12/16/2020
JPMorgan
30,455,000 RUB
$383,582
$14,566
12/16/2020
Morgan Stanley
100,000,000 HUF
$320,021
$12,519
12/16/2020
Morgan Stanley
7,370,000 MXN
$329,119
$34,897
12/16/2020
Morgan Stanley
1,260,000 PLN
$322,147
$13,607
12/16/2020
State Street
16,950,000 MXN
$751,434
$85,755
12/16/2020
State Street
19,000,000 MXN
$947,815
$(9,373)
12/16/2020
State Street
515,000 PLN
$132,167
$5,066
12/21/2020
BNP Paribas
75,674,500 CLP
$98,882
$492
3/2/2021
Citibank
108,000,000 COP
$29,980
$(66)
3/17/2021
Bank of America
9,370,000 CNY
$1,411,436
$443
Annual Shareholder Report
18

Settlement Date
Counterparty
Foreign Currency
Units to
Receive/Deliver
In
Exchange
For
Unrealized
Appreciation
(Depreciation)
Contracts Sold:
12/2/2020
Barclays
$32,000
27,426 EUR
$715
12/2/2020
JPMorgan
8,500,000 BRL
$1,561,917
$(24,673)
12/2/2020
JPMorgan
3,440,000 BRL
$649,337
$7,235
12/2/2020
JPMorgan
2,400,000 BRL
$455,897
$7,918
12/2/2020
JPMorgan
1,750,000 BRL
$332,685
$6,034
12/2/2020
Morgan Stanley
$32,000
3,347,642 JPY
$66
12/14/2020
Bank of America
$32,000
27,163 EUR
$419
12/14/2020
Citibank
$32,000
3,376,877 JPY
$358
12/16/2020
Bank of America
7,300,000 CZK
$323,259
$(8,556)
12/16/2020
Barclays
7,050,000 MXN
$331,877
$(16,334)
12/16/2020
Barclays
37,600,000 RUB
$496,450
$4,894
12/16/2020
BNP Paribas
5,580,000 CZK
$243,576
$(10,059)
12/16/2020
BNP Paribas
690,000 RON
$165,413
$(3,296)
12/16/2020
Citibank
930,700,000 COP
$250,384
$(8,221)
12/16/2020
Citibank
190,000 EUR
$225,100
$(1,680)
12/16/2020
Citibank
63,600,000 HUF
$207,070
$(4,425)
12/16/2020
Citibank
19,000,000 MXN
$892,431
$(46,011)
12/16/2020
Citibank
9,650,000 MXN
$455,155
$(21,475)
12/16/2020
Citibank
2,500,000 PLN
$664,945
$(1,235)
12/16/2020
Citibank
2,000,000 PLN
$522,617
$(10,327)
12/16/2020
Citibank
24,700,000 RUB
$325,221
$2,310
12/16/2020
Credit Agricole
37,000,000 RUB
$473,428
$(10,285)
12/16/2020
JPMorgan
1,490,000 RON
$360,890
$(3,423)
12/16/2020
State Street
20,750,000 MXN
$971,776
$(53,101)
12/21/2020
BNP Paribas
75,674,500 CLP
$99,818
$444
2/2/2021
JPMorgan
8,690,000 BRL
$1,623,877
$3,807
NET UNREALIZED APPRECIATION ON FOREIGN EXCHANGE CONTRACTS
$67,121
Net Unrealized Appreciation on Foreign Exchange Contracts and value for Swap Contracts is included in “Other Assets and LiabilitiesNet.
Annual Shareholder Report
19

Affiliated fund holdings are investment companies which are managed by the Adviser or an affiliate of the Adviser. Transactions with affiliated fund holdings during the period ended November 30, 2020, were as follows:
 
Federated Hermes
Institutional
Prime Value
Obligations Fund,
Institutional Shares
Value as of 11/30/2019
$485,244
Purchases at Cost
14,919,096
Proceeds from Sales
(14,813,332)
Change in Unrealized Appreciation/Depreciation
(25)
Net Realized Gain/(Loss)
363
Value as of 11/30/2020
$591,346
Shares Held as of 11/30/2020
591,109
Dividend Income
$2,300
Gain Distributions Received
$29
1
Non-income-producing security.
2
Discount rate at time of purchase.
3
Security in default.
4
Perpetual Bond Security. The maturity date reflects the next call date.
5
Floating/variable note with current rate and current maturity or next reset date shown.
6
7-day net yield.
7
The cost of investments for federal tax purposes amounts to $36,227,022.
8
Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.
9
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation.
Note: The categories of investments are shown as a percentage of total net assets at November 30, 2020.
Annual Shareholder Report
20

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 1quoted prices in active markets for identical securities.
Level 2other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3significant 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 November 30, 2020, in valuing the Fund’s assets carried at fair value:
Valuation Inputs
 
 
 
 
 
Level 1
Quoted
Prices
Level 2
Other
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Total
Debt Securities:
 
 
 
 
Foreign Governments/Agencies
$
$17,721,719
$
$17,721,719
Corporate Bonds
14,394,227
14,394,227
Equity Securities:
 
 
 
 
Common Stock
205,696
205,696
Exchange-Traded Fund
325,498
 
 
325,498
Investment Company
591,346
591,346
TOTAL SECURITIES
$1,122,540
$32,115,946
$
$33,238,486
Other Financial Instruments:
 
 
 
 
Assets
 
 
 
 
 Foreign Exchange Contracts
$
$304,432
$
$304,432
 Swap Contracts
28,043
28,043
Liabilities
 
 
 
 
 Foreign Exchange Contracts
(237,311)
(237,311)
 Swap Contracts
(12,707)
(12,707)
TOTAL OTHER
FINANCIAL INSTRUMENTS
$
$82,457
$
$82,457
Annual Shareholder Report
21

The following acronym(s) are used throughout this portfolio:
ADR
American Depositary Receipt
ARS
Argentine Peso
BADLAR
Buenos Aires Deposits of Large Amount Rate
BRL
Brazilian Real
CLP
Chilean Peso
CNY
Chinese Yuan Renminbi
COP
Colombian Peso
CZK
Czech Koruna
EGP
Egyptian Pound
EMTN
Euro Medium Term Note
EUR
Euro
GDP
Gross Domestic Product
GMTN
Global Medium Term Note
HUF
Hungarian Forint
IDR
Indonesian Rupiah
JPY
Japanese Yen
JSC
Joint Stock Company
MTN
Medium Term Note
MXN
Mexican Peso
OTC
Over-the-Counter
PEN
Peruvian Nuevo Sol
PJSC
Public Joint Stock Company
PLN
Polish Zloty
RON
Romanian New Leu
RUB
Russian Ruble
USD
United States Dollar
UYU
Uruguayan Peso
ZAR
South African Rand
 
 
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
22

Financial HighlightsClass A Shares
(For a Share Outstanding Throughout Each Period)
Year Ended November 30
2020
2019
2018
2017
2016
Net Asset Value, Beginning of Period
$8.56
$7.91
$8.72
$8.00
$8.21
Income From Investment Operations:
 
 
 
 
 
Net investment income
0.47
0.54
0.481
0.601
0.631
Net realized and unrealized gain (loss)
0.02
0.33
(1.00)
0.37
(0.51)
TOTAL FROM INVESTMENT OPERATIONS
0.49
0.87
(0.52)
0.97
0.12
Less Distributions:
 
 
 
 
 
Distributions from net investment income
(0.20)
(0.22)
(0.29)
(0.25)
(0.29)
Return of capital2
(0.04)
TOTAL DISTRIBUTIONS
(0.20)
(0.22)
(0.29)
(0.25)
(0.33)
Net Asset Value, End of Period
$8.85
$8.56
$7.91
$8.72
$8.00
Total Return3
5.83%
11.23%
(6.06)%
12.22%
1.53%
Ratios to Average Net Assets:
 
 
 
 
 
Net expenses4
1.18%5
1.18%5
1.20%5
1.20%5
1.19%
Net investment income
5.51%
6.13%
5.72%
6.98%
7.76%
Expense waiver/reimbursement6
1.16%
0.91%
0.83%
0.92%
0.96%
Supplemental Data:
 
 
 
 
 
Net assets, end of period (000 omitted)
$24,294
$26,993
$27,267
$34,085
$38,212
Portfolio turnover
69%
91%
140%
123%
134%
1
Per share numbers have been calculated using the average shares method.
2
Represents a return of capital for federal income tax purposes.
3
Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.
4
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
5
The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 1.18%, 1.18%, 1.20% and 1.20% for the years ended November 30, 2020, 2019, 2018 and 2017, respectively, after taking into account these expense reductions.
6
This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
23

Financial HighlightsClass C Shares
(For a Share Outstanding Throughout Each Period)
Year Ended November 30
2020
2019
2018
2017
2016
Net Asset Value, Beginning of Period
$8.50
$7.86
$8.67
$7.96
$8.17
Income From Investment Operations:
 
 
 
 
 
Net investment income
0.45
0.49
0.421
0.541
0.571
Net realized and unrealized gain (loss)
(0.02)
0.31
(1.00)
0.36
(0.51)
TOTAL FROM INVESTMENT OPERATIONS
0.43
0.80
(0.58)
0.90
0.06
Less Distributions:
 
 
 
 
 
Distributions from net investment income
(0.13)
(0.16)
(0.23)
(0.19)
(0.24)
Return of capital2
(0.03)
TOTAL DISTRIBUTIONS
(0.13)
(0.16)
(0.23)
(0.19)
(0.27)
Net Asset Value, End of Period
$8.80
$8.50
$7.86
$8.67
$7.96
Total Return3
5.20%
10.34%
(6.81)%
11.32%
0.77%
Ratios to Average Net Assets:
 
 
 
 
 
Net expenses4
1.93%5
1.93%5
1.95%5
1.95%5
1.94%
Net investment income
4.93%
5.56%
5.08%
6.42%
7.04%
Expense waiver/reimbursement6
1.15%
0.91%
0.81%
0.94%
0.96%
Supplemental Data:
 
 
 
 
 
Net assets, end of period (000 omitted)
$1,394
$2,207
$3,331
$6,669
$9,871
Portfolio turnover
69%
91%
140%
123%
134%
1
Per share numbers have been calculated using the average shares method.
2
Represents a return of capital for federal income tax purposes.
3
Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.
4
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
5
The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 1.93%, 1.93%, 1.95% and 1.95% years ended November 30, 2020, 2019, 2018 and 2017, respectively, after taking into account these expense reductions.
6
This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
24

Financial HighlightsInstitutional Shares
(For a Share Outstanding Throughout Each Period)
Year Ended November 30
2020
2019
2018
2017
2016
Net Asset Value, Beginning of Period
$8.57
$7.92
$8.74
$8.01
$8.23
Income From Investment Operations:
 
 
 
 
 
Net investment income
0.49
0.56
0.501
0.611
0.671
Net realized and unrealized gain (loss)
0.03
0.33
(1.01)
0.39
(0.54)
TOTAL FROM INVESTMENT OPERATIONS
0.52
0.89
(0.51)
1.00
0.13
Less Distributions:
 
 
 
 
 
Distributions from net investment income
(0.22)
(0.24)
(0.31)
(0.27)
(0.30)
Return of capital2
(0.05)
TOTAL DISTRIBUTIONS
(0.22)
(0.24)
(0.31)
(0.27)
(0.35)
Net Asset Value, End of Period
$8.87
$8.57
$7.92
$8.74
$8.01
Total Return3
6.21%
11.49%
(5.92)%
12.62%
1.66%
Ratios to Average Net Assets:
 
 
 
 
 
Net expenses4
0.93%5
0.93%5
0.95%5
0.96%5
0.94%
Net investment income
5.81%
6.40%
5.99%
7.05%
8.21%
Expense waiver/reimbursement6
1.15%
0.91%
0.82%
0.89%
0.94%
Supplemental Data:
 
 
 
 
 
Net assets, end of period (000 omitted)
$7,653
$9,256
$9,417
$15,457
$11,731
Portfolio turnover
69%
91%