This brochure explains Federated International Securities business, and provides important information about
us, and in certain cases, our affiliates and related persons. For example, our employee-representatives serve as sales
people for the Federated Hermes mutual funds, as well as for other investment products sponsored by Federated
Hermes and investment advisory services offered by the Relevant Other Advisory Companies (as defined below). As
used within this section, “we” shall refer to Federated International Securities , our affiliates and/or our related
persons, including our employee-representatives, as appropriate.
Corp.’s
Additional information about us, any of our investment adviser representatives, and our affiliates that are registered
investment advisers (together with us, each, as applicable, an Advisory Company and, collectively, as applicable, the
Advisory Companies) also is available via the website at SEC’s
SEC
www.adviserinfo.sec.gov. Available Form , Part 2A,
brochures for the following Federated Advisory Companies also may be obtained free of charge from our website
(
ADV
FederatedHermes.com): Federated Investment Counseling; Federated (including its Advisers
division); and Federated Global Investment Management . Corp
MDT LLCMDTA
A. How We are Organized
We organized as a Delaware corporation on September 12, 2017. We are also a registered broker/dealer under the
Securities Act of 1934 (1934 Act).
B. Our Ownership Structure
We are an indirect, wholly-owned subsidiary of Federated Hermes, (Federated Hermes). Federated Hermes is
organized as a Pennsylvania corporation and is a publicly owned company (Ticker Symbol: ). Federated Hermes
owns 100% of the outstanding voting securities of Holdings, , a Delaware corporation. Holdings owns 100%
of the outstanding voting securities of Federated International Securities . Corp
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FHI
Inc.
Federated Hermes, a public company, has shares of both Class A Common Stock and Class B Common Stock. The
Class B Common Stock is listed on the New York Stock Exchange (). Except under certain limited circumstances,
the entire voting power of Federated Hermes is vested in the holder of the outstanding shares of the Class A Common
Stock. All of the outstanding shares of Class A Common Stock are held by a Voting Shares Irrevocable Trust, dated
May 31, 1989 (the Voting Trust), the three trustees of which are Federated Hermes’s President and Chief Executive
Officer and Chairman of its Board of Directors, Mr. J. Christopher Donahue, his brother, Thomas R. Donahue,
Federated Hermes’s Vice President, Treasurer and Chief Financial Officer and a director, and Ann C. Donahue, the wife
of Mr. J. Christopher Donahue, for the benefit of the members of the Donahue family.
NYSE
Federated Hermes owns a number of domestic and foreign advisory subsidiaries that are under common control with,
and affiliates of, Federated International Securities Federated Hermes Limited (), a wholly-owned subsidiary
of Federated Hermes based in the United Kingdom, wholly-owns registered investment adviser subsidiaries, including
Hermes Investment Management Limited (such investment adviser subsidiaries, the Advisory Companies), as well
as, among others, Hermes Equity Ownership Services (), an entity that provides stewardship services, including
engagement on environmental, social, corporate governance, strategic and financial matters, and research services.
is discussed further in Item 10. Although the Advisory Companies are under common control with, and affiliates
of, Federated International Securities and the other Advisory Companies (together with us, each, as applicable, a
Federated Advisory Company and, collectively, as applicable, the Federated Advisory Companies), the disclosure and
discussion of the policies and practices of the Federated Advisory Companies herein does not include the Advisory
Companies, except where specifically noted, as the Advisory Companies generally operate their investment
management and trading functions independently, and will have no material effect on the advisory activities of the
Federated Advisory Companies. However, Federated International Securities or other Federated Advisory
Companies will provide coordination and oversight of the investment management activities of the Advisory
Companies when the Advisory Companies act in a subadvisory capacity for clients of the Federated Advisory
Companies, and will share certain internally-generated research with the Advisory Companies and subject to
the information barriers described below. As discussed under “Conflicts of Interest Relating to Information Sharing
Among Affiliates ” in Item 6, information barriers have been implemented among the Advisory Companies and to
prevent the exchange of material non-public information among the Federated Advisory Companies, and the
Advisory Companies, and which requires that all investment-related activities, including trading activity and the
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allocation and aggregation of trades, of the Federated Advisory Companies are operated independent of, and are not
integrated with, the investment related activities of the Advisory Companies. (Please refer to “Other Financial
Industry Activities and Affiliations” in Item 10 of this brochure for further information.)
The Federated Advisory Companies collectively provide advisory services to a variety of separately managed accounts or
wrap fee accounts (Managed Accounts), institutional, or high net worth individual, separate accounts (Separate
Accounts), registered investment companies, including exchange-traded funds () and mutual funds (collectively,
Investment Companies), investment companies that are registered under the Investment Company Act (as defined
below) that offer shares that are not registered under the 1933 Act (as defined below) (Private Investment Companies),
other pooled investment vehicles (Pooled Investment Vehicles), and proprietary accounts and funds (Proprietary
Accounts). Federated Hermes also owns other companies, both in the United States and in certain other countries, such
as investment advisers, broker/dealers, management companies, commodity pool operators and trust companies. For
further information on the advisory services provided by the other Federated Advisory Companies, reference should be
made to the Form , Part 1, and Form , Part 2A brochures for the other Federated Advisory Companies to the
extent prepared and filed
with the . SEC
ADVADV
ETFs
C. Our Services
1. Advisory-Related Services
We are registered as an investment adviser because we act as a promoter for the other Advisory Companies and, in
certain cases, also provide advisory services on behalf of the other Federated Advisory Companies to the institutional,
separately managed account/wrap-fee account and other clients of the other Federated Advisory Companies. Certain of
our employees may also from time to time solicit clients on behalf of, or refer clients to, non-U.S. affiliates that are
exempt from registration under the Investment Advisers Act of 1940, as amended (the Advisers Act). We do not have
any investment advisory clients of our own. We relied on Rule 203A-2(c) under the Advisers Act to register with
the , as we are under common control with Federated Investment Counseling, a Federated Advisory Company that
is registered with the as an investment adviser under the Advisers Act. We have the same principal office and place
of business as Federated Investment Counseling.
SEC
SEC
SEC
Our employee-representatives are not employees of the other Advisory Companies for which they serve as sales
people/promoters. However, Federated International Securities and our employee-representatives are supervised
persons of certain other Federated Advisory Companies. They also are deemed to be “persons associated with” such
other Federated Advisory Companies and are registered as investment adviser representatives of these Federated
Advisory Companies. When our employee-representatives act in such capacity, they are subject to the supervision and
control of such other Federated Advisory Companies. As such, our employee-representatives are subject to the
compliance programs of such other Federated Advisory Companies when soliciting clients or potential clients for them
or providing advice on their behalf. We solicit on behalf of the following Federated Advisory Companies (the Relevant
Other Federated Advisory Companies) and Advisory Companies (the Relevant Advisory Companies)
(collectively, the Relevant Other Advisory Companies):
FHL FHL
Corp.
. Federated Investment Counseling;
. Federated Global Investment Management ; Corp.
. Federated (including its Advisers division); MDTLLCMDTA
. Federated Equity Management Company of Pennsylvania;
. Federated Investment Management Company;
. Hermes ; LLPGPE
. Hermes () ; Inc.USAGPE
. Hermes Investment Management Limited; and
. Federated Hermes () LLPUK
We do not provide investment supervisory services or model portfolio management services to any client. We also do
not participate as a portfolio manager in wrap fee (or Managed Account) programs. We do not have any assets under
management.
Our services are provided to the Relevant Other Advisory Companies pursuant to one or more written agreements.
These written agreements:
. Describe the sales activities to be engaged in by our employee-representatives on behalf of the Relevant Other
Advisory Companies;
. Describe the compensation to be received for such services;
. Require that our, and our employee-representatives’ status as our employee-representatives, be disclosed to the
client or potential client of the Relevant Other Advisory Companies at the time of the solicitation or referral;
and
. Require that the affiliation between us, and our employee-representatives, and the Relevant Other Advisory
Companies, be disclosed to the client or potential client of the Relevant Other Advisory Companies.
These written agreements, among other things, are designed to enable the Relevant Other Advisory Companies to
develop a reasonable basis for believing that communications to clients and potential clients of such Relevant Other
Advisory Companies comply with the requirements of Rule 206(4)-1, including that they contain certain disclosures
required by the Rule regarding our status as an affiliate, compensation to be received for our services, and any material
conflicts associated with our activities on behalf of the Relevant Other Advisory Companies.
In addition to solicitation services, the employee-representatives of Federated International Securities may also
provide investment advice on behalf of the Relevant Other Federated Advisory Companies to their clients. In doing so,
services are not limited to certain types of investments and advice may be tailored to the individual needs of clients
based on the client’s objectives, policies, risk tolerances, financial condition and other relevant factors. Our employee-
representatives may, among other activities:
Corp.
. Make presentations regarding mutual funds and investment strategies and products to clients and potential
clients of the Relevant Other Federated Advisory Companies;
. Distribute marketing materials containing strategy descriptions, performance records and other information to
such clients and potential clients;
. Discuss available mutual fund options and investment strategies (and whether to invest, or maintain an
investment, in them) with such clients and potential clients; and
. Discuss account performance, recent security selections, changes in strategy/investment restrictions, recent
market developments and investment objective changes with clients of the Relevant Other Federated Advisory
Companies.
Our employee-representatives are compensated, in part, for performing these services in addition to solicitation services.
(Please refer to “Our Fees for Our Advisory-Related Services” in Item 5 of this brochure for further information.) The
above communications with clients or potential clients of the Relevant Other Federated Advisory Companies will be
made through, and on behalf of, the applicable Federated Advisory Company.
2. Other Services
Federated International Securities is a registered broker/dealer under the 1934 Act. In these capacities, we
perform other non-advisory related services. For example, in our capacity as a broker/dealer, our primary business is to
market domestic mutual funds and Private Investment Companies sponsored by Federated Hermes. In addition, we may
act as a placement agent with respect to certain private funds offered by Hermes Investment Management Limited, or
another Relevant Advisory Company. We may provide services to banks, financial institutions or other advisers as
placement agent for Pooled Investment Vehicle clients of the other Advisory Companies.
We may receive compensation for the placement agent and sales-related activities discussed above. (Please refer to “Sales
Compensation” in Item 5 of this brochure for further information.)