This brochure explains Federated Securities .’s 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 and exchange-traded funds (s), 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 Securities., our affiliates and/or our related
persons, including our employee-representatives, as appropriate.
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 ’s website atSEC
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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
(
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FederatedHermes.com): Federated Investment Counseling; Federated (including its Advisers
division); and Federated Global Investment Management . Corp
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A. How We are Organized
We organized as a Pennsylvania corporation on November 14, 1969. Our original name was Betafed . We first
registered with the as an investment adviser under the Investment Advisers Act of 1940, as amended (Advisers
Act), on August 17, 2009. We are also a registered broker/dealer and municipal securities dealer under the Securities Act
of 1934, as amended (1934 Act).
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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 ofHoldings, ., a Delaware corporation. Holdings owns 100%
of the outstanding voting securities of Federated Securities . Corp
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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.
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Federated Hermes owns a number of domestic and foreign advisory subsidiaries that are under common control with,
and affiliates of, Federated Securities Corp. 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 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 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 EOS
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1. Advisory-Related Services
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 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.)
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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 s 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
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C. Our 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. Federated
International
Securities . is an affiliate that is a registered broker/dealer and investment adviser. Federated
International Securities ., and its employee-representatives, may perform similar functions and services as those
performed by Federated Securities . and its employee-representatives, and may enter into similar written agreements
and receive similar compensation as the agreements entered into by and compensation received by Federated Securities
., as described in this brochure. 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 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.
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Our employee-representatives are not employees of the other Advisory Companies for which they serve as sales
people/promoters. However, Federated 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):
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Federated Investment Counseling;
Federated Global Investment Management .; Corp
Federated LLC (including its Advisers division); MDTMDTA
Federated Equity Management Company of Pennsylvania;
Federated Investment Management Company;
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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 Securities Corp. 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:
Make presentations regarding mutual fund and investment strategies and products to clients and potential
clients of the Relevant Other Federated Advisory Companies;
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Distribute marketing materials containing strategy descriptions, performance records and other information to
such clients and potential clients;
Discuss available Investment Company 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 Securities Corp. is a registered broker/dealer and municipal securities 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 serve as the distributor for a family of domestic Investment Companies and Private Investment
Companies sponsored by Federated Hermes. We also sell units of certain collective investment trust(s)/fund(s) for
which (i) Federated Investors Trust Company, an affiliate of Federated Securities ., serves as trustee and (ii) an
entity unaffiliated with the Federated Advisory Companies serves as trustee. 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 in connection with
Federated Securities . locating purchasers for assets held in Pooled Investment Vehicles for which such entities Corp
serve as trustees. We also engage in certain sales-related activities relating to certain local government investment pools
and 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.)