Martin Jarzebowski: Most people automatically equate ESG integration with being able to use some third-party dataset. And I always feel like that can be a limiting factor because it's a good starting point in the process, but it's not the finish line. It may not give you the full and comprehensive understanding. So Randy, just curious, how do you articulate the incorporation of all of these different engagement insights into your investment process? And give us a glimpse of how all these different puzzle pieces come together.
Randall Bauer: What we're is incorporating all of those aspects that you just mentioned, Martin, as you said the ESG rating agencies are simply one input that we utilize in assessing the desirability of an investment, both from a fundamental standpoint and from an ESG standpoint. We like to think that the ultimate decision is a synthesis of all of that. But not only do we utilize external agencies, and not only do we utilize the internal rating that is assigned by Federated Hermes, we utilize the results of the engagement as another input to the process. And in addition to evaluating the collateral on a number of fronts, and we use a 15 point checklist when we are looking at each deal, both from environmental factors, from social factors, from governance factors, but we also then look at the sponsor, and many times that's where the engagement process is most relevant. Obviously, when you talk about the sponsors, you have to understand, are they doing the right thing from the standpoint of stakeholder and not just shareholder and then, in our case, debt holder stewardship, but what is the activity of that sponsor that will allow us to have comfort in the investment going forward?
Disclosures: Views are as of Nov. 5, 2021 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector. Duration is a measure of a securitys price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations. The value of some asset-backed securities may be particularly sensitive to changes in prevailing interest rates, and although certain securities may supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations. ESG investments may be viewed as sustainable, responsible or socially conscious, among other names. ESG factors may be utilized and evaluated differently by different investment managers and may mean different things to different people. Investing based in part on ESG factors carries the risk that, under certain market conditions, the investment strategy may underperform strategies that do not utilize such factors. The application of responsible investment criteria may affect exposure to certain sectors or types of investments and may impact relative investment performance depending on whether such sectors or investments are in or out of favor in the market. An investments ESG performance or an investment managers assessment of such performance may change over time. The successful application of ESG factors is dependent on an investment managers skill in properly identifying and analyzing material ESG issues, and the suitability of ESG investments may change over time. The ESG ratings assigned are one consideration among others as part of the security selection process and do not represent an assessment of the fund itself. The qualitative analysis described does not automatically result in including or excluding specific securities but is used as an additional input to improve portfolio risk/return characteristics. Federated Advisory Services Company 21-40551 (11/21)