United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-4539
(Investment Company Act File Number)
Federated Hermes Adjustable Rate Securities Trust
______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
Peter J. Germain, Esquire
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 08/31/24
Date of Reporting Period: Six months ended 02/29/24
Item 1. | Reports to Stockholders |
Share Class | Ticker
|
A | FEUGX
|
Institutional | FEUNX
|
|
|
Type of Investment
|
Percentage of
Total Net Assets
|
Collateralized Mortgage Obligations
|
74.0%
|
U.S. Government Agency Commercial Mortgage-Backed Securities
|
9.2%
|
U.S. Government Agency Mortgage-Backed Securities
|
8.4%
|
U.S. Government Agency Adjustable Rate Mortgage Securities
|
4.0%
|
Asset-Backed Securities
|
1.9%
|
Non-Agency Mortgage-Backed Securities
|
1.1%
|
Cash Equivalents2
|
5.9%
|
Other Assets and Liabilities—Net3
|
(4.5)%
|
TOTAL
|
100%
|
1
|
See the Fund’s Prospectus and Statement of Additional Information for a description of the
types of securities in which the Fund invests.
|
2
|
Cash Equivalents include any investments in money market mutual funds and/or overnight
repurchase agreements.
|
3
|
Assets, other than investments in securities, less liabilities. See Statement of Assets
and
Liabilities.
|
Principal
Amount
or Shares
|
|
|
Value
|
|
1
|
COLLATERALIZED MORTGAGE OBLIGATIONS— 75.1%
|
|
|
|
Federal Home Loan Mortgage Corporation— 28.9%
|
|
$ 61,026
|
|
REMIC, Series 2380, Class FL, 6.039% (30-DAY AVERAGE SOFR
+0.714%), 11/15/2031
|
$ 60,959
|
82,004
|
|
REMIC, Series 2434, Class FA, 6.439% (30-DAY AVERAGE SOFR
+1.114%), 3/15/2032
|
82,326
|
29,106
|
|
REMIC, Series 2448, Class FA, 6.439% (30-DAY AVERAGE SOFR
+1.114%), 1/15/2032
|
29,223
|
30,795
|
|
REMIC, Series 2452, Class FC, 6.439% (30-DAY AVERAGE SOFR
+1.114%), 1/15/2032
|
30,919
|
95,225
|
|
REMIC, Series 2459, Class FP, 6.439% (30-DAY AVERAGE SOFR
+1.114%), 6/15/2032
|
95,604
|
25,773
|
|
REMIC, Series 2470, Class EF, 6.439% (30-DAY AVERAGE SOFR
+1.114%), 3/15/2032
|
25,874
|
113,479
|
|
REMIC, Series 2475, Class F, 6.439% (30-DAY AVERAGE SOFR
+1.114%), 2/15/2032
|
113,919
|
77,627
|
|
REMIC, Series 2475, Class FD, 5.989% (30-DAY AVERAGE SOFR
+0.664%), 6/15/2031
|
77,419
|
69,739
|
|
REMIC, Series 2480, Class NF, 6.439% (30-DAY AVERAGE SOFR
+1.114%), 1/15/2032
|
70,005
|
25,377
|
|
REMIC, Series 2498, Class AF, 6.439% (30-DAY AVERAGE SOFR
+1.114%), 3/15/2032
|
25,477
|
86,003
|
|
REMIC, Series 3085, Class UF, 5.889% (30-DAY AVERAGE SOFR
+0.564%), 12/15/2035
|
84,753
|
210,767
|
|
REMIC, Series 3156, Class HF, 5.924% (30-DAY AVERAGE SOFR
+0.599%), 8/15/2035
|
207,888
|
350,689
|
|
REMIC, Series 3208, Class FD, 5.839% (30-DAY AVERAGE SOFR
+0.514%), 8/15/2036
|
345,108
|
341,211
|
|
REMIC, Series 3208, Class FG, 5.839% (30-DAY AVERAGE SOFR
+0.514%), 8/15/2036
|
335,781
|
78,988
|
|
REMIC, Series 3213, Class GF, 5.869% (30-DAY AVERAGE SOFR
+0.544%), 9/15/2036
|
77,711
|
489,815
|
|
REMIC, Series 3284, Class AF, 5.749% (30-DAY AVERAGE SOFR
+0.424%), 3/15/2037
|
479,605
|
731,498
|
|
REMIC, Series 3314, Class FE, 5.709% (30-DAY AVERAGE SOFR
+0.384%), 5/15/2037
|
714,413
|
609,221
|
|
REMIC, Series 3346, Class FT, 5.789% (30-DAY AVERAGE SOFR
+0.464%), 10/15/2033
|
600,604
|
227,541
|
|
REMIC, Series 3380, Class FP, 5.789% (30-DAY AVERAGE SOFR
+0.464%), 11/15/2036
|
223,356
|
261,822
|
|
REMIC, Series 3550, Class GF, 6.189% (30-DAY AVERAGE SOFR
+0.864%), 7/15/2039
|
260,691
|
Principal
Amount
or Shares
|
|
|
Value
|
|
1
|
COLLATERALIZED MORTGAGE OBLIGATIONS— continued
|
|
|
|
Federal Home Loan Mortgage Corporation— continued
|
|
$ 340,903
|
|
REMIC, Series 3556, Class FA, 6.349% (30-DAY AVERAGE SOFR
+1.024%), 7/15/2037
|
$ 341,580
|
143,617
|
|
REMIC, Series 3593, Class CF, 6.039% (30-DAY AVERAGE SOFR
+0.714%), 2/15/2036
|
142,613
|
2,668,884
|
|
REMIC, Series 4077, Class HF, 5.839% (30-DAY AVERAGE SOFR
+0.514%), 7/15/2042
|
2,602,365
|
1,021,851
|
|
REMIC, Series 4242, Class F, 5.839% (30-DAY AVERAGE SOFR
+0.514%), 8/15/2043
|
998,323
|
3,334,138
|
|
REMIC, Series 4255, Class KF, 5.889% (30-DAY AVERAGE SOFR
+0.564%), 10/15/2043
|
3,253,598
|
1,676,273
|
|
REMIC, Series 4508, Class CF, 5.839% (30-DAY AVERAGE SOFR
+0.514%), 9/15/2045
|
1,641,725
|
2,952,056
|
|
REMIC, Series 4619, Class NF, 5.839% (30-DAY AVERAGE SOFR
+0.514%), 3/15/2044
|
2,892,246
|
1,546,941
|
|
REMIC, Series 4752, Class PF, 5.739% (30-DAY AVERAGE SOFR
+0.414%), 11/15/2047
|
1,462,951
|
3,877,334
|
|
REMIC, Series 4803, Class FA, 5.739% (30-DAY AVERAGE SOFR
+0.414%), 6/15/2048
|
3,730,981
|
593,346
|
|
REMIC, Series 4829, Class FA, 5.689% (30-DAY AVERAGE SOFR
+0.364%), 7/15/2037
|
577,403
|
1,212,276
|
|
REMIC, Series 4845, Class WF, 5.739% (30-DAY AVERAGE SOFR
+0.414%), 12/15/2048
|
1,183,768
|
1,879,863
|
|
REMIC, Series 4846, Class PF, 5.789% (30-DAY AVERAGE SOFR
+0.464%), 12/15/2048
|
1,817,386
|
1,036,629
|
|
REMIC, Series 4915, Class FG, 5.886% (30-DAY AVERAGE SOFR
+0.564%), 9/25/2049
|
1,008,260
|
850,906
|
|
REMIC, Series 4921, Class FN, 5.886% (30-DAY AVERAGE SOFR
+0.564%), 10/25/2049
|
819,616
|
517,578
|
|
REMIC, Series 4959, Class JF, 5.886% (30-DAY AVERAGE SOFR
+0.564%), 3/25/2050
|
501,820
|
6,712,318
|
|
REMIC, Series 4983, Class FJ, 5.886% (30-DAY AVERAGE SOFR
+0.564%), 6/25/2050
|
6,433,321
|
2,304,548
|
|
REMIC, Series 4998, Class KF, 5.671% (30-DAY AVERAGE SOFR
+0.350%), 8/25/2050
|
2,199,106
|
5,000,000
|
|
REMIC, Series 5393, Class HF, 6.274% (30-DAY AVERAGE SOFR
+0.000%), 3/25/2054
|
4,985,224
|
|
|
TOTAL
|
40,533,921
|
|
|
Federal National Mortgage Association— 39.2%
|
|
65,412
|
|
REMIC, Series 2001-32, Class FA, 5.986% (30-DAY AVERAGE SOFR
+0.664%), 7/25/2031
|
65,306
|
35,448
|
|
REMIC, Series 2001-57, Class FA, 5.886% (30-DAY AVERAGE SOFR
+0.564%), 6/25/2031
|
35,120
|
28,456
|
|
REMIC, Series 2001-62, Class FC, 6.086% (30-DAY AVERAGE SOFR
+0.764%), 11/25/2031
|
28,457
|
Principal
Amount
or Shares
|
|
|
Value
|
|
1
|
COLLATERALIZED MORTGAGE OBLIGATIONS— continued
|
|
|
|
Federal National Mortgage Association— continued
|
|
$ 36,135
|
|
REMIC, Series 2001-71, Class FS, 6.036% (30-DAY AVERAGE SOFR
+0.714%), 11/25/2031
|
$ 36,023
|
122,377
|
|
REMIC, Series 2002-7, Class FG, 6.336% (30-DAY AVERAGE SOFR
+1.014%), 1/25/2032
|
122,579
|
59,096
|
|
REMIC, Series 2002-8, Class FA, 6.188% (30-DAY AVERAGE SOFR
+0.864%), 3/18/2032
|
59,106
|
68,528
|
|
REMIC, Series 2002-52, Class FG, 5.936% (30-DAY AVERAGE SOFR
+0.614%), 9/25/2032
|
68,135
|
195,718
|
|
REMIC, Series 2002-58, Class FG, 6.436% (30-DAY AVERAGE SOFR
+1.114%), 8/25/2032
|
196,584
|
31,804
|
|
REMIC, Series 2002-60, Class FH, 6.436% (30-DAY AVERAGE SOFR
+1.114%), 8/25/2032
|
31,945
|
63,300
|
|
REMIC, Series 2002-77, Class FA, 6.438% (30-DAY AVERAGE SOFR
+1.114%), 12/18/2032
|
63,561
|
25,249
|
|
REMIC, Series 2002-77, Class FG, 5.988% (30-DAY AVERAGE SOFR
+0.664%), 12/18/2032
|
25,113
|
68,460
|
|
REMIC, Series 2005-67, Class FM, 5.786% (30-DAY AVERAGE SOFR
+0.464%), 8/25/2035
|
67,988
|
1,361,121
|
|
REMIC, Series 2005-95, Class FH, 5.736% (30-DAY AVERAGE SOFR
+0.414%), 11/25/2035
|
1,336,041
|
98,505
|
|
REMIC, Series 2006-11, Class FB, 5.736% (30-DAY AVERAGE SOFR
+0.414%), 3/25/2036
|
97,366
|
2,066,687
|
|
REMIC, Series 2006-42, Class CF, 5.886% (30-DAY AVERAGE SOFR
+0.564%), 6/25/2036
|
2,039,117
|
1,091,204
|
|
REMIC, Series 2006-50, Class FE, 5.836% (30-DAY AVERAGE SOFR
+0.514%), 6/25/2036
|
1,079,187
|
383,611
|
|
REMIC, Series 2006-65, Class DF, 5.786% (30-DAY AVERAGE SOFR
+0.464%), 7/25/2036
|
377,633
|
149,357
|
|
REMIC, Series 2006-76, Class QF, 5.836% (30-DAY AVERAGE SOFR
+0.514%), 8/25/2036
|
147,198
|
1,012,944
|
|
Series 2006-81, Class FA, 5.786% (30-DAY AVERAGE SOFR
+0.464%), 9/25/2036
|
995,580
|
500,399
|
|
REMIC, Series 2006-85, Class PF, 5.816% (30-DAY AVERAGE SOFR
+0.494%), 9/25/2036
|
493,005
|
421,022
|
|
REMIC, Series 2006-103, Class FB, 5.836% (30-DAY AVERAGE SOFR
+0.514%), 10/25/2036
|
414,046
|
853,285
|
|
REMIC, Series 2006-123, Class CF, 5.696% (30-DAY AVERAGE SOFR
+0.374%), 1/25/2037
|
835,186
|
1,299,715
|
|
Series 2006-W1, Class 2AF1, 5.656% (30-DAY AVERAGE SOFR
+0.334%), 2/25/2046
|
1,287,200
|
72,361
|
|
REMIC, Series 2007-20, Class F, 5.696% (30-DAY AVERAGE SOFR
+0.374%), 3/25/2037
|
71,072
|
816,197
|
|
REMIC, Series 2007-71, Class WF, 5.886% (30-DAY AVERAGE SOFR
+0.564%), 7/25/2037
|
804,808
|
Principal
Amount
or Shares
|
|
|
Value
|
|
1
|
COLLATERALIZED MORTGAGE OBLIGATIONS— continued
|
|
|
|
Federal National Mortgage Association— continued
|
|
$ 177,231
|
|
REMIC, Series 2007-88, Class FW, 5.986% (30-DAY AVERAGE SOFR
+0.664%), 9/25/2037
|
$ 174,057
|
49,338
|
|
REMIC, Series 2007-102, Class FA, 6.006% (30-DAY AVERAGE SOFR
+0.684%), 11/25/2037
|
48,783
|
207,796
|
|
REMIC, Series 2008-69, Class FB, 6.436% (30-DAY AVERAGE SOFR
+1.114%), 6/25/2037
|
208,390
|
23,862
|
|
REMIC, Series 2008-75, Class DF, 6.686% (30-DAY AVERAGE SOFR
+1.364%), 9/25/2038
|
24,108
|
373,007
|
|
REMIC, Series 2009-78, Class UF, 6.206% (30-DAY AVERAGE SOFR
+0.884%), 10/25/2039
|
371,647
|
560,970
|
|
REMIC, Series 2009-87, Class FX, 6.186% (30-DAY AVERAGE SOFR
+0.864%), 11/25/2039
|
559,352
|
684,229
|
|
REMIC, Series 2009-87, Class HF, 6.286% (30-DAY AVERAGE SOFR
+0.964%), 11/25/2039
|
682,356
|
932,664
|
|
REMIC, Series 2009-106, Class FN, 6.186% (30-DAY AVERAGE SOFR
+0.864%), 1/25/2040
|
929,016
|
297,844
|
|
REMIC, Series 2010-39, Class EF, 5.956% (30-DAY AVERAGE SOFR
+0.634%), 6/25/2037
|
294,547
|
1,865,351
|
|
REMIC, Series 2010-68, Class BF, 5.936% (30-DAY AVERAGE SOFR
+0.614%), 7/25/2040
|
1,835,197
|
1,014,672
|
|
REMIC, Series 2011-4, Class PF, 5.986% (30-DAY AVERAGE SOFR
+0.664%), 2/25/2041
|
1,004,740
|
340,503
|
|
REMIC, Series 2012-65, Class FB, 5.956% (30-DAY AVERAGE SOFR
+0.634%), 6/25/2042
|
334,853
|
944,124
|
|
REMIC, Series 2012-122, Class LF, 5.836% (30-DAY AVERAGE SOFR
+0.514%), 11/25/2042
|
922,713
|
1,298,004
|
|
REMIC, Series 2012-130, Class DF, 5.836% (30-DAY AVERAGE SOFR
+0.514%), 12/25/2042
|
1,259,814
|
1,368,448
|
|
REMIC, Series 2014-20, Class FB, 5.836% (30-DAY AVERAGE SOFR
+0.514%), 4/25/2044
|
1,338,975
|
898,492
|
|
REMIC, Series 2016-32, Class FA, 5.836% (30-DAY AVERAGE SOFR
+0.514%), 10/25/2034
|
886,118
|
773,754
|
|
REMIC, Series 2016-83, Class FA, 5.936% (30-DAY AVERAGE SOFR
+0.614%), 11/25/2046
|
754,795
|
587,595
|
|
REMIC, Series 2017-96, Class FA, 5.842% (30-DAY AVERAGE SOFR
+0.514%), 12/25/2057
|
569,492
|
1,586,626
|
|
REMIC, Series 2018-15, Class JF, 5.736% (30-DAY AVERAGE SOFR
+0.414%), 3/25/2048
|
1,522,875
|
4,162,609
|
|
REMIC, Series 2018-57, Class FL, 5.736% (30-DAY AVERAGE SOFR
+0.414%), 8/25/2048
|
4,012,763
|
2,357,750
|
|
Series 2018-70, Class HF, 5.786% (30-DAY AVERAGE SOFR
+0.464%), 10/25/2058
|
2,296,226
|
2,423,177
|
|
REMIC, Series 2019-5, Class FA, 5.836% (30-DAY AVERAGE SOFR
+0.514%), 3/25/2049
|
2,370,132
|
Principal
Amount
or Shares
|
|
|
Value
|
|
1
|
COLLATERALIZED MORTGAGE OBLIGATIONS— continued
|
|
|
|
Federal National Mortgage Association— continued
|
|
$2,444,007
|
|
REMIC, Series 2019-21, Class FB, 5.886% (30-DAY AVERAGE SOFR
+0.564%), 5/25/2049
|
$ 2,377,288
|
3,497,471
|
|
REMIC, Series 2019-25, Class PF, 5.886% (30-DAY AVERAGE SOFR
+0.564%), 6/25/2049
|
3,409,265
|
1,686,455
|
|
REMIC, Series 2019-33, Class FB, 5.886% (30-DAY AVERAGE SOFR
+0.564%), 7/25/2049
|
1,646,466
|
956,633
|
|
REMIC, Series 2019-35, Class EF, 5.886% (30-DAY AVERAGE SOFR
+0.564%), 7/25/2049
|
929,258
|
408,798
|
|
REMIC, Series 2019-41, Class FC, 5.886% (30-DAY AVERAGE SOFR
+0.564%), 8/25/2049
|
396,563
|
1,253,409
|
|
REMIC, Series 2019-42, Class LF, 5.786% (30-DAY AVERAGE SOFR
+0.464%), 8/25/2049
|
1,240,505
|
1,748,827
|
|
REMIC, Series 2019-59, Class F, 5.889% (30-DAY AVERAGE SOFR
+0.544%), 10/25/2049
|
1,702,332
|
4,755,508
|
|
REMIC, Series 2020-27, Class FD, 5.886% (30-DAY AVERAGE SOFR
+0.564%), 5/25/205
|
4,606,166
|
1,589,170
|
|
REMIC, Series 2020-29, Class FC, 5.697% (30-DAY AVERAGE SOFR
+0.914%), 5/25/2050
|
1,586,356
|
1,793,320
|
|
REMIC, Series 2020-34, Class FA, 5.886% (30-DAY AVERAGE SOFR
+0.564%), 6/25/2050
|
1,738,089
|
2,389,322
|
|
REMIC, Series 2023-42, Class FA, 5.736% (30-DAY AVERAGE SOFR
+0.414%), 10/25/2048
|
2,317,962
|
|
|
TOTAL
|
55,128,555
|
|
|
Government National Mortgage Association— 5.9%
|
|
2,363,259
|
|
REMIC, Series 2010-115, Class FP, 6.000% (CME Term SOFR 1 Month
+0.714%), 9/20/2040
|
2,323,998
|
286,329
|
|
REMIC, Series 2012-42, Class HF, 5.804% (CME Term SOFR 1 Month
+0.484%), 3/20/2042
|
278,806
|
1,290,270
|
|
REMIC, Series 2014-2, Class BF, 5.784% (CME Term SOFR 1 Month
+0.464%), 1/20/2044
|
1,262,735
|
1,933,043
|
|
REMIC, Series 2015-119, Class FN, 5.684% (CME Term SOFR 1 Month
+0.364%), 8/20/2045
|
1,859,191
|
2,639,641
|
|
REMIC, Series 2022-175, Class FA, 6.224% (30-DAY AVERAGE SOFR
+0.000%), 10/20/2052
|
2,600,943
|
|
|
TOTAL
|
8,325,673
|
|
|
Non-Agency Mortgage-Backed Securities— 1.1%
|
|
1,681,539
|
|
JP Morgan Mortgage Trust 2021-1, Class A11, 5.994% (30-DAY AVERAGE
SOFR +0.650%), 6/25/2051
|
1,566,831
|
|
|
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(IDENTIFIED COST $107,409,998)
|
105,554,980
|
|
1
|
COMMERCIAL MORTGAGE-BACKED SECURITIES— 9.2%
|
|
|
|
Agency Commercial Mortgage-Backed Securities— 9.2%
|
|
661,767
|
|
FHLMC REMIC, Series KF90, Class AS, 5.711% (30-DAY AVERAGE SOFR
+0.380%), 9/25/2030
|
653,288
|
Principal
Amount
or Shares
|
|
|
Value
|
|
1
|
COMMERCIAL MORTGAGE-BACKED SECURITIES— continued
|
|
|
|
Agency Commercial Mortgage-Backed Securities— continued
|
|
$1,833,823
|
|
FHLMC REMIC, Series KF94, Class AL, 5.745% (30-DAY AVERAGE SOFR
+0.414%), 11/25/2030
|
$ 1,824,497
|
1,575,000
|
|
FHLMC REMIC, Series KF148, Class AS, 6.171% (30-DAY AVERAGE SOFR
+0.840%), 11/25/2032
|
1,578,680
|
1,999,467
|
|
FHLMC REMIC, Series KF149, Class AS, 5.971% (30-DAY AVERAGE SOFR
+0.640%), 12/25/2032
|
1,992,018
|
1,999,348
|
|
FHLMC REMIC, Series KF154, Class AS, 6.011% (30-DAY AVERAGE SOFR
+0.680%), 3/25/2033
|
1,992,510
|
2,000,000
|
|
FHLMC REMIC, Series KF155, Class AS, 6.001% (30-DAY AVERAGE SOFR
+0.670%), 2/25/2030
|
1,997,729
|
2,650,000
|
|
FHLMC REMIC, Series KF157, Class AS, 5.991% (30-DAY AVERAGE SOFR
+0.660%), 4/25/2033
|
2,631,907
|
171,429
|
|
FNMA REMIC, Series 2020-M5, Class FA, 5.908% (30-DAY AVERAGE SOFR
+0.574%), 1/25/2027
|
171,169
|
|
|
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $12,890,592)
|
12,841,798
|
|
|
MORTGAGE-BACKED SECURITIES— 8.4%
|
|
|
|
Federal Home Loan Mortgage Corporation— 3.8%
|
|
1,494,346
|
|
5.000%, 4/1/2053
|
1,449,566
|
3,967,982
|
|
5.500%, 8/1/2053
|
3,926,491
|
|
|
TOTAL
|
5,376,057
|
|
|
Federal National Mortgage Association— 1.4%
|
|
481,306
|
|
4.000%, 4/1/2053
|
443,098
|
1,500,000
|
|
5.500%, 1/1/2054
|
1,484,315
|
|
|
TOTAL
|
1,927,413
|
|
|
Government National Mortgage Association— 0.3%
|
|
493,004
|
|
5.500%, 8/20/2053
|
489,978
|
|
|
Uniform Mortgage-Backed Securities, TBA— 2.9%
|
|
2,000,000
|
|
5.500%, 3/1/2054
|
1,978,594
|
2,000,000
|
|
6.500%, 3/20/2054
|
2,027,344
|
|
|
TOTAL
|
4,005,938
|
|
|
TOTAL MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $11,858,576)
|
11,799,386
|
|
1
|
ADJUSTABLE RATE MORTGAGES— 4.0%
|
|
|
|
Federal Home Loan Mortgage Corporation ARM— 0.5%
|
|
242,022
|
|
4.640%, 7/1/2038
|
245,346
|
478,214
|
|
5.254%, 5/1/2035
|
487,105
|
|
|
TOTAL
|
732,451
|
|
|
Federal National Mortgage Association ARM— 3.5%
|
|
1,503
|
|
4.715%, 7/1/2027
|
1,498
|
23,012
|
|
4.874%, 4/1/2034
|
23,492
|
Principal
Amount
or Shares
|
|
|
Value
|
|
1
|
ADJUSTABLE RATE MORTGAGES— continued
|
|
|
|
Federal National Mortgage Association ARM— continued
|
|
$ 24,489
|
|
5.105%, 5/1/2038
|
$ 24,945
|
26,847
|
|
5.112%, 5/1/2035
|
27,519
|
195,027
|
|
5.114%, 9/1/2033
|
196,241
|
76,805
|
|
5.315%, 5/1/2035
|
78,488
|
29,661
|
|
5.333%, 2/1/2036
|
30,110
|
65,922
|
|
5.335%, 5/1/2035
|
66,376
|
99,399
|
|
5.340%, 6/1/2033
|
100,894
|
179,753
|
|
5.414%, 1/1/2035
|
182,635
|
412,536
|
|
5.465%, 10/1/2034
|
415,239
|
281,910
|
|
5.519%, 7/1/2035
|
285,207
|
109,556
|
|
5.565%, 10/1/2037
|
110,895
|
410,195
|
|
5.644%, 5/1/2039
|
410,889
|
175,305
|
|
5.732%, 7/1/2035
|
179,651
|
199,141
|
|
5.767%, 6/1/2034
|
201,443
|
109,672
|
|
5.887%, 12/1/2034
|
111,264
|
142,439
|
|
5.896%, 7/1/2035
|
145,338
|
213,238
|
|
6.085%, 11/1/2039
|
218,278
|
125,168
|
|
6.088%, 7/1/2035
|
126,512
|
528,743
|
|
6.119%, 1/1/2040
|
541,113
|
228,521
|
|
6.123%, 12/1/2034
|
230,216
|
84,170
|
|
6.143%, 10/1/2035
|
85,022
|
341,783
|
|
6.195%, 2/1/2042
|
349,085
|
244,694
|
|
6.307%, 1/1/2035
|
247,147
|
120,973
|
|
6.340%, 12/1/2033
|
121,475
|
167,981
|
|
6.398%, 10/1/2035
|
168,026
|
45,278
|
|
6.954%, 11/1/2035
|
45,715
|
164,815
|
|
7.328%, 8/1/2034
|
166,679
|
|
|
TOTAL
|
4,891,392
|
|
|
Government National Mortgage Association— 0.0%
|
|
7,143
|
|
3.625%, 1/20/2030
|
7,058
|
13,829
|
|
3.750%, 10/20/2029
|
13,508
|
7,730
|
|
3.875%, 5/20/2029
|
7,624
|
|
|
TOTAL
|
28,190
|
|
|
TOTAL ADJUSTABLE RATE MORTGAGES
(IDENTIFIED COST $5,732,202)
|
5,652,033
|
|
|
ASSET-BACKED SECURITIES— 1.9%
|
|
|
|
Auto Receivables— 0.5%
|
|
754,309
|
1
|
Chesapeake Funding II LLC 2023-1A, Class A2, 6.574% (30-DAY AVERAGE
SOFR +1.250%), 5/15/2035
|
754,569
|
Principal
Amount
or Shares
|
|
|
Value
|
|
|
ASSET-BACKED SECURITIES— continued
|
|
|
|
Student Loans— 1.4%
|
|
$ 242,560
|
|
Navient Student Loan Trust 2020-HA, Class A, 1.310%, 1/15/2069
|
$ 221,733
|
726,637
|
|
Navient Student Loan Trust 2021-FA, Class A, 1.110%, 2/18/2070
|
617,323
|
763,000
|
|
Navient Student Loan Trust 2021-GA, Class A, 1.580%, 4/15/2070
|
658,713
|
438,235
|
1
|
SMB Private Education Loan Trust 2020-BA, Class A1B, 6.532% (CME Term
SOFR 1 Month +1.214%), 7/15/2053
|
437,666
|
|
|
TOTAL
|
1,935,435
|
|
|
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $2,923,437)
|
2,690,004
|
|
|
INVESTMENT COMPANY— 5.9%
|
|
8,305,979
|
|
Federated Hermes Government Obligations Fund, Premier Shares, 5.23%2
(IDENTIFIED COST $8,305,979)
|
8,305,979
|
|
|
TOTAL INVESTMENT IN SECURITIES—104.5%
(IDENTIFIED COST $149,120,784)3
|
146,844,180
|
|
|
OTHER ASSETS AND LIABILITIES - NET—(4.5)%4
|
(6,365,103)
|
|
|
TOTAL NET ASSETS—100%
|
$140,479,077
|
|
Federated Hermes
Government
Obligations Fund,
Premier Shares
|
Value as of 8/31/2023
|
$2,462,587
|
Purchases at Cost
|
$59,829,482
|
Proceeds from Sales
|
$(53,986,090)
|
Change in Unrealized Appreciation/Depreciation
|
$—
|
Net Realized Gain/(Loss)
|
$—
|
Value as of 2/29/2024
|
$8,305,979
|
Shares Held as of 2/29/2024
|
8,305,979
|
Dividend Income
|
$160,872
|
1
|
Floating/adjustable note with current rate and current maturity or next reset date
shown.
Adjustable rate mortgage security coupons are based on the weighted average note rates
of the
underlying mortgages less the guarantee and servicing fees. These securities do not
indicate an
index and spread in their description above.
|
2
|
7-day net yield.
|
3
|
Also represents cost of investments for federal tax purposes.
|
4
|
Assets, other than investments in securities, less liabilities. See Statement of Assets
and
Liabilities.
|
Valuation Inputs
|
||||
|
Level 1—
Quoted
Prices
|
Level 2—
Other
Significant
Observable
Inputs
|
Level 3—
Significant
Unobservable
Inputs
|
Total
|
Debt Securities:
|
|
|
|
|
Collateralized Mortgage Obligations
|
$—
|
$105,554,980
|
$—
|
$105,554,980
|
Commercial Mortgage-Backed
Securities
|
—
|
12,841,798
|
—
|
12,841,798
|
Mortgage-Backed Securities
|
—
|
11,799,386
|
—
|
11,799,386
|
Adjustable Rate Mortgages
|
—
|
5,652,033
|
—
|
5,652,033
|
Asset-Backed Securities
|
—
|
2,690,004
|
—
|
2,690,004
|
Investment Company
|
8,305,979
|
—
|
—
|
8,305,979
|
TOTAL SECURITIES
|
$8,305,979
|
$138,538,201
|
$—
|
$146,844,180
|
The following acronym(s) are used throughout this portfolio:
|
|
|
ARM
|
—Adjustable Rate Mortgage
|
|
FHLMC
|
—Federal Home Loan Mortgage Corporation
|
|
FNMA
|
—Federal National Mortgage Association
|
|
REMIC
|
—Real Estate Mortgage Investment Conduit
|
|
SOFR
|
—Secured Overnight Financing Rate
|
|
Six Months
Ended
(unaudited)
2/29/2024
|
Year Ended August 31,
|
||||
|
2023
|
2022
|
2021
|
2020
|
2019
|
|
Net Asset Value, Beginning of Period
|
$9.22
|
$9.48
|
$9.63
|
$9.65
|
$9.67
|
$9.64
|
Income From Investment Operations:
|
|
|
|
|
|
|
Net investment income (loss)2
|
0.24
|
0.37
|
0.05
|
0.02
|
0.15
|
0.22
|
Net realized and unrealized gain (loss)
|
0.06
|
(0.26)
|
(0.15)
|
(0.01)
|
(0.01)
|
0.03
|
Total From Investment Operations
|
0.30
|
0.11
|
(0.10)
|
0.01
|
0.14
|
0.25
|
Less Distributions:
|
|
|
|
|
|
|
Distributions from net investment income
|
(0.24)
|
(0.37)
|
(0.05)
|
(0.03)
|
(0.16)
|
(0.22)
|
Net Asset Value, End of Period
|
$9.28
|
$9.22
|
$9.48
|
$9.63
|
$9.65
|
$9.67
|
Total Return3
|
3.34%
|
1.25%
|
(1.08)%
|
0.09%
|
1.42%
|
2.61%
|
Ratios to Average Net Assets:
|
|
|
|
|
|
|
Net expenses4
|
0.55%5
|
0.55%
|
0.55%
|
0.53%
|
0.52%
|
0.65%
|
Net investment income
|
5.30%5
|
3.96%
|
0.48%
|
0.26%
|
1.63%
|
2.24%
|
Expense waiver/reimbursement6
|
0.33%5
|
0.29%
|
0.26%
|
0.31%
|
0.35%
|
0.38%
|
Supplemental Data:
|
|
|
|
|
|
|
Net assets, end of period (000 omitted)
|
$28,431
|
$29,438
|
$33,685
|
$74,655
|
$93,198
|
$122,537
|
Portfolio turnover7
|
32%
|
44%
|
54%
|
82%
|
80%
|
35%
|
Portfolio turnover (excluding purchases and
sales from dollar-roll transactions)7
|
20%
|
42%
|
53%
|
51%
|
67%
|
35%
|
1
|
Effective at the start of business on July 28, 2022, the Fund’s Service Shares were re-designated
as Class A Shares. Prior to August 5, 2019, the former Service Shares were designated
as the
Institutional Shares.
|
2
|
Per share numbers have been calculated using the average shares method.
|
3
|
Based on net asset value, which does not reflect the sales charge, redemption fee
or contingent
deferred sales charge, if applicable. Total returns for periods of less than one year
are
not annualized.
|
4
|
Amount does not reflect net expenses incurred by investment companies in which the
Fund
may invest.
|
5
|
Computed on an annualized basis.
|
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.
|
7
|
Securities that mature are considered sales for purposes of this calculation.
|
|
Six Months
Ended
(unaudited)
2/29/2024
|
Year Ended August 31,
|
Period
Ended
8/31/20192 |
|||
|
2023
|
2022
|
2021
|
2020
|
||
Net Asset Value, Beginning of Period
|
$9.22
|
$9.48
|
$9.63
|
$9.65
|
$9.67
|
$9.67
|
Income From Investment Operations:
|
|
|
|
|
|
|
Net investment income (loss)3
|
0.26
|
0.38
|
0.09
|
0.05
|
0.17
|
0.02
|
Net realized and unrealized gain (loss)
|
0.06
|
(0.24)
|
(0.17)
|
(0.02)
|
(0.01)
|
—
|
Total From Investment
Operations
|
0.32
|
0.14
|
(0.08)
|
0.03
|
0.16
|
0.02
|
Less Distributions:
|
|
|
|
|
|
|
Distributions from net investment income
|
(0.26)
|
(0.40)
|
(0.07)
|
(0.05)
|
(0.18)
|
(0.02)
|
Net Asset Value, End of Period
|
$9.28
|
$9.22
|
$9.48
|
$9.63
|
$9.65
|
$9.67
|
Total Return4
|
3.46%
|
1.50%
|
(0.84)%
|
0.31%
|
1.64%
|
0.18%
|
Ratios to Average Net Assets:
|
|
|
|
|
|
|
Net expenses5
|
0.30%6
|
0.30%
|
0.30%
|
0.30%
|
0.30%
|
0.30%6
|
Net investment income
|
5.56%6
|
4.10%
|
0.93%
|
0.47%
|
1.78%
|
3.10%6
|
Expense waiver/reimbursement7
|
0.33%6
|
0.29%
|
0.26%
|
0.31%
|
0.34%
|
0.38%6
|
Supplemental Data:
|
|
|
|
|
|
|
Net assets, end of period (000 omitted)
|
$112,048
|
$95,018
|
$156,311
|
$65,393
|
$60,878
|
$7,773
|
Portfolio turnover8
|
32%
|
44%
|
54%
|
82%
|
80%
|
35%9
|
Portfolio turnover (excluding purchases and
sales from dollar-roll transactions)8
|
20%
|
42%
|
53%
|
51%
|
67%
|
35%9
|
1
|
The Fund’s Institutional Shares are a new class of Shares effective as of the close of business on
August 2, 2019.
|
2
|
Reflects operations for the period from August 5, 2019 (commencement of operations)
to
August 31, 2019.
|
3
|
Per share numbers have been calculated using the average shares method.
|
4
|
Based on net asset value. Total returns for periods of less than one year are not
annualized.
|
5
|
Amount does not reflect net expenses incurred by investment companies in which the
Fund
may invest.
|
6
|
Computed on an annualized basis.
|
7
|
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.
|
8
|
Securities that mature are considered sales for purposes of this calculation.
|
9
|
Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated
for the
fiscal year ended August 31, 2019.
|
Assets:
|
|
Investment in securities, at value including $8,305,979 of investments in affiliated
holdings* (identified cost $149,120,784, including $8,305,979 of identified cost in
affiliated holdings)
|
$146,844,180
|
Income receivable
|
275,164
|
Income receivable from affiliated holdings
|
29,308
|
Receivable for investments sold
|
3,548
|
Receivable for shares sold
|
581,165
|
Total Assets
|
147,733,365
|
Liabilities:
|
|
Payable for investments purchased
|
6,626,674
|
Payable for shares redeemed
|
379,522
|
Income distribution payable
|
203,487
|
Payable to adviser (Note 5)
|
1,789
|
Payable for administrative fee (Note 5)
|
297
|
Payable for Directors’/Trustees’ fees (Note 5)
|
1,888
|
Payable for other service fees (Notes 2 and 5)
|
5,210
|
Accrued expenses (Note 5)
|
35,421
|
Total Liabilities
|
7,254,288
|
Net assets for 15,136,888 shares outstanding
|
$140,479,077
|
Net Assets Consist of:
|
|
Paid-in capital
|
$148,194,103
|
Total distributable earnings (loss)
|
(7,715,026)
|
Total Net Assets
|
$140,479,077
|
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
|
|
Class A Shares:
|
|
Net asset value per share ($28,430,727 ÷ 3,063,607 shares outstanding), no par value,
unlimited shares authorized
|
$9.28
|
Offering price per share (100/99.00 of $9.28)
|
$9.37
|
Redemption proceeds per share
|
$9.28
|
Institutional Shares:
|
|
Net asset value per share ($112,048,350 ÷ 12,073,281 shares outstanding), no par
value, unlimited shares authorized
|
$9.28
|
Offering price per share
|
$9.28
|
Redemption proceeds per share
|
$9.28
|
*
|
See information listed after the Fund’s Portfolio of Investments.
|
Investment Income:
|
|
Interest
|
$3,481,640
|
Dividends received from affiliated holdings*
|
160,872
|
TOTAL INCOME
|
3,642,512
|
Expenses:
|
|
Investment adviser fee (Note 5)
|
155,451
|
Administrative fee (Note 5)
|
49,326
|
Custodian fees
|
8,844
|
Transfer agent fees
|
51,231
|
Directors’/Trustees’ fees (Note 5)
|
3,797
|
Auditing fees
|
18,300
|
Legal fees
|
5,515
|
Portfolio accounting fees
|
54,542
|
Other service fees (Notes 2 and 5)
|
34,261
|
Share registration costs
|
22,025
|
Printing and postage
|
12,638
|
Miscellaneous (Note 5)
|
15,711
|
TOTAL EXPENSES
|
431,641
|
Waiver and Reimbursements:
|
|
Waiver/reimbursement of investment adviser fee (Note 5)
|
(155,451)
|
Reimbursement of other operating expenses (Note 5)
|
(52,340)
|
TOTAL WAIVER AND REIMBURSEMENTS
|
(207,791)
|
Net expenses
|
223,850
|
Net investment income
|
3,418,662
|
Realized and Unrealized Gain (Loss) on Investments:
|
|
Net realized loss on investments
|
(342,752)
|
Net change in unrealized depreciation of investments
|
1,076,174
|
Net realized and unrealized gain (loss) on investments
|
733,422
|
Change in net assets resulting from operations
|
$4,152,084
|
*
|
See information listed after the Fund’s Portfolio of Investments.
|
|
Six Months
Ended
(unaudited)
2/29/2024
|
Year Ended
8/31/2023
|
Increase (Decrease) in Net Assets
|
|
|
Operations:
|
|
|
Net investment income
|
$3,418,662
|
$5,704,437
|
Net realized gain (loss)
|
(342,752)
|
(1,952,072)
|
Net change in unrealized appreciation/depreciation
|
1,076,174
|
(2,567,736)
|
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
|
4,152,084
|
1,184,629
|
Distributions to Shareholders:
|
|
|
Class A Shares
|
(737,363)
|
(1,221,428)
|
Institutional Shares
|
(2,690,718)
|
(4,527,856)
|
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS
TO SHAREHOLDERS
|
(3,428,081)
|
(5,749,284)
|
Share Transactions:
|
|
|
Proceeds from sale of shares
|
49,210,869
|
58,276,312
|
Net asset value of shares issued to shareholders in payment of
distributions declared
|
2,181,191
|
3,325,644
|
Cost of shares redeemed
|
(36,092,840)
|
(122,577,116)
|
CHANGE IN NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
|
15,299,220
|
(60,975,160)
|
Change in net assets
|
16,023,223
|
(65,539,815)
|
Net Assets:
|
|
|
Beginning of period
|
124,455,854
|
189,995,669
|
End of period
|
$140,479,077
|
$124,455,854
|
|
Other Service
Fees Incurred
|
Class A Shares
|
$34,261
|
|
Six Months Ended
2/29/2024
|
Year Ended
8/31/2023
|
||
Class A Shares:
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares sold
|
291,625
|
$2,697,766
|
525,725
|
$4,887,955
|
Shares issued to shareholders in payment of
distributions declared
|
71,218
|
658,180
|
116,091
|
1,078,969
|
Shares redeemed
|
(491,810)
|
(4,534,132)
|
(1,001,902)
|
(9,326,601)
|
NET CHANGE RESULTING FROM CLASS A
SHARE TRANSACTIONS
|
(128,967)
|
$(1,178,186)
|
(360,086)
|
$(3,359,677)
|
|
Six Months Ended
2/29/2024
|
Year Ended
8/31/2023
|
||
Institutional Shares:
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares sold
|
5,024,093
|
$46,513,103
|
5,730,338
|
$53,388,357
|
Shares issued to shareholders in payment of
distributions declared
|
164,711
|
1,523,011
|
241,628
|
2,246,675
|
Shares redeemed
|
(3,420,468)
|
(31,558,708)
|
(12,154,554)
|
(113,250,515)
|
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE TRANSACTIONS
|
1,768,336
|
$16,477,406
|
(6,182,588)
|
$(57,615,483)
|
NET CHANGE RESULTING FROM TOTAL
FUND SHARE TRANSACTIONS
|
1,639,369
|
$15,299,220
|
(6,542,674)
|
$(60,975,160)
|
Short-Term
|
Long-Term
|
Total
|
$4,820,273
|
$274,604
|
$5,094,877
|
Administrative Fee
|
Average Daily Net Assets
of the Investment Complex
|
0.100%
|
on assets up to $50 billion
|
0.075%
|
on assets over $50 billion
|
Purchases
|
$—
|
Sales
|
$379,646
|
|
Beginning
Account Value
9/1/2023
|
Ending
Account Value
2/29/2024
|
Expenses Paid
During Period1
|
Actual:
|
|
|
|
Class A Shares
|
$1,000
|
$1,033.40
|
$2.78
|
Institutional Shares
|
$1,000
|
$1,034.60
|
$1.52
|
Hypothetical (assuming a 5% return
before expenses):
|
|
|
|
Class A Shares
|
$1,000
|
$1,022.13
|
$2.77
|
Institutional Shares
|
$1,000
|
$1,023.37
|
$1.51
|
1
|
Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average
account value over the period, multiplied by 182/366 (to reflect the one-half-year
period). The
annualized net expense ratios are as follows:
|
Class A Shares
|
0.55%
|
Institutional Shares
|
0.30%
|
Item 2. | Code of Ethics |
Not Applicable
Item 3. | Audit Committee Financial Expert |
Not Applicable
Item 4. | Principal Accountant Fees and Services |
Not Applicable
Item 5. | Audit Committee of Listed Registrants |
Not Applicable
Item 6. | Schedule of Investments |
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
Item 8. | Portfolio Managers of Closed-End Management Investment Companies |
Not Applicable
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
Not Applicable
Item 10. | Submission of Matters to a Vote of Security Holders |
No Changes to Report
Item 11. | Controls and Procedures |
(a) The registrant’s President and Treasurer 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-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies |
Not Applicable
Item 18. | Recovery of Erroneously Awarded Compensation |
(a) | Not Applicable |
(b) | Not Applicable |
Item 13. | Exhibits |
(a)(1) Code of Ethics- Not Applicable to this Report.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Federated Hermes Adjustable Rate Securities Trust
By /S/ Jeremy D. Boughton
Jeremy D. Boughton
Principal Financial Officer
Date April 23, 2024
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 April 23, 2024
By /S/ Jeremy D. Boughton
Jeremy D. Boughton
Principal Financial Officer
Date April 23, 2024