| Security | CUSIP | Shares | Traded Market Value | % of Holding ↓ |
| FNARM VRN 10/01/37 | 31410KLA0 | 6,681,416 | $6,753,877.67 | 8.07% |
| FNARM 889863 VRN 08/01/35 | 31410KTU8 | 5,373,470 | $5,490,576.11 | 6.56% |
| FNMA VRN 08/01/34 | 31405WN35 | 4,819,015 | $4,910,468.19 | 5.86% |
| FEDERATED US GOVT FUND | 990060GG4 | 4,224,452 | $4,224,452.35 | 5.04% |
| FNARM 922762 VRN 06/01/36 | 31412ECH7 | 4,156,212 | $4,160,023.36 | 4.97% |
| FNARM 809526 VRN 02/01/35 | 31406GLF4 | 3,767,260 | $3,770,947.79 | 4.50% |
| INST US GOV SEC MMKT | 76628T249 | 3,077,529 | $3,077,529.37 | 3.67% |
| FNMA VRN 01/01/35 | 31402QXR7 | 2,824,166 | $2,831,907.22 | 3.38% |
| FNMA VRN 10/01/33 | 31403QMT4 | 2,522,067 | $2,553,886.15 | 3.05% |
| FN 828710 VRN 07/01/35 | 31407EVB6 | 2,443,223 | $2,473,548.52 | 2.95% |
| FNARM VRN 11/01/37 | 31410GTK9 | 2,323,968 | $2,338,101.00 | 2.79% |
| FNARM VRN 10/01/33 | 31402KUT9 | 1,915,354 | $1,964,468.97 | 2.34% |
| FNARM VRN 02/01/36 | 31410GLD3 | 1,846,933 | $1,855,792.84 | 2.21% |
| FHLMC VRN 03/01/35 | 3128JPE97 | 1,743,964 | $1,752,802.62 | 2.09% |
| FNARM 01/01/36 | 31410DAK6 | 1,679,154 | $1,695,528.71 | 2.02% |
| FNMA 3.25 02/15/09 | 31359MTZ6 | 1,685,000 | $1,688,041.43 | 2.01% |
| FNMA VRN 03/01/35 | 31406UUX4 | 1,622,316 | $1,629,253.64 | 1.94% |
| FANNIE MAE VRN 08/01/34 | 31403DHQ5 | 1,610,441 | $1,617,910.41 | 1.93% |
| FNMA VRN 07/01/35 | 31410GK69 | 1,538,640 | $1,585,378.59 | 1.89% |
| FNMA VRN 04/01/33 | 31400KQT6 | 1,514,979 | $1,544,140.44 | 1.84% |
| FNARM VRN 08/01/35 | 31402RN39 | 1,438,016 | $1,459,171.04 | 1.74% |
| FNMA VRN 12/01/40 | 31410KLB8 | 1,438,742 | $1,437,331.20 | 1.71% |
| FHLMC VRN 10/01/36 | 3128QPPM8 | 1,377,473 | $1,398,537.96 | 1.67% |
| FNMA VRN 11/01/33 | 31385XRZ2 | 1,249,309 | $1,264,509.63 | 1.51% |
| FHLMC VRN 05/01/34 | 31349SVQ3 | 1,214,318 | $1,228,263.48 | 1.46% |
| FNMA 5.601 07/01/36 | 31410DHM5 | 1,199,548 | $1,213,205.52 | 1.45% |
| FNARM VRN 04/01/35 | 31406TBV2 | 1,214,594 | $1,211,389.96 | 1.44% |
| FNMA VRN 07/01/34 | 31405MA23 | 1,152,951 | $1,157,182.43 | 1.38% |
| FNMA VRN 08/01/34 | 31401K6B6 | 1,065,672 | $1,067,082.08 | 1.27% |
| FNARM VRN 07/01/33 | 31401K4L6 | 1,016,553 | $1,016,224.18 | 1.21% |
| FNARM 826045 VRN 06/01/35 | 31407BWE5 | 962,484 | $964,666.68 | 1.15% |
| FNMA 6.01 05/01/09 | 31374TUH0 | 909,228 | $906,700.72 | 1.08% |
| FNARM 822302 VRN 05/01/35 | 31406WRX4 | 845,445 | $849,839.90 | 1.01% |
| FNMA 4.923 01/01/36 | 31408AMN7 | 848,261 | $846,061.77 | 1.01% |
| FHARM 1B2558 VRN 10/01/34 | 3128JMWU7 | 838,347 | $844,760.13 | 1.00% |
| FHARM 1B7142 VRN 09/01/36 | 3128QPKE1 | 775,112 | $793,368.91 | 0.94% |
| FNARM 800334 VRN 12/01/34 | 31405VEF0 | 750,943 | $750,736.51 | 0.89% |
| FHLMC VRN 08/01/34 | 3128Q3S85 | 737,864 | $735,386.50 | 0.87% |
| FNARM 725751 VRN 07/01/34 | 31402DH45 | 707,250 | $715,249.91 | 0.85% |
| GNR 06-39 3.772 06/16/25 | 38373MVU1 | 707,304 | $699,000.32 | 0.83% |
| FNMA 5.159% 11/01/10 | 31402CYT3 | 692,810 | $697,195.69 | 0.83% |
| FNMA VRN 12/01/33 | 31402HBG5 | 615,788 | $620,521.33 | 0.74% |
| FHARM 847308 VRN 07/01/34 | 3128JRDM5 | 574,207 | $570,209.07 | 0.68% |
| FHR 2617 UM 4.00 05/15/15 | 31393RC40 | 569,771 | $569,010.28 | 0.68% |
| FHARM 1G1676 VRN 04/01/37 | 3128QJ2H8 | 533,463 | $537,499.62 | 0.64% |
| FNMA 4.492 08/01/35 | 31407NGH0 | 521,611 | $522,619.68 | 0.62% |
| FNARM 735316 VRN 07/01/34 | 31402Q3Z2 | 507,180 | $506,484.37 | 0.60% |
| FNARM VRN 06/01/35 | 31404NEM4 | 440,842 | $443,666.93 | 0.53% |
| FNARM 772346 VRN 03/01/34 | 31404MBP2 | 437,366 | $434,935.73 | 0.51% |
| FHARM VRN 02/01/35 | 3128JMGD3 | 411,699 | $414,299.53 | 0.49% |
| FNARM 781575 VRN 12/01/34 | 31404XJU9 | 402,143 | $401,807.84 | 0.48% |
| FHARM 1B1002 VRN 08/01/33 | 3128JLAC3 | 381,501 | $389,753.81 | 0.46% |
| FNARM VRN 12/01/34 | 31406DEM4 | 384,659 | $386,334.46 | 0.46% |
| FHARM 847522 VRN 05/01/34 | 3128JRLB0 | 352,205 | $359,303.07 | 0.42% |
| FNARM 773243 VRN 02/01/35 | 31404NBL9 | 357,468 | $357,424.04 | 0.42% |
| FHARM 847259 VRN 03/01/34 | 3128JRB47 | 352,216 | $353,735.93 | 0.42% |
| FNARM VRN 01/01/33 | 31385XAB3 | 344,887 | $348,572.39 | 0.41% |
| FNARM 685558 VRN 01/01/33 | 31400ETP5 | 329,402 | $331,129.37 | 0.39% |
| FHARM VRN 02/01/35 | 3128NCCN2 | 277,049 | $279,202.80 | 0.33% |
| FANNIE MAE 6.35 05/01/09 | 31377MZ95 | 262,091 | $261,878.48 | 0.31% |
| FREDDIE MAC 5.50 05/15/09 | 31392KLD6 | 258,072 | $261,572.22 | 0.31% |
| FNARM 555468 VRN 05/01/33 | 31385XCD7 | 257,429 | $258,918.15 | 0.30% |
| FNARM 888260 VRN 07/01/35 | 31410FZZ1 | 229,033 | $231,777.39 | 0.27% |
| FNARM 555844 VRN 10/01/33 | 31385XP50 | 168,176 | $171,253.60 | 0.20% |
| FNARM 635082 VRN 05/01/32 | 31389TRB0 | 157,161 | $154,632.20 | 0.18% |
| FNARM VRN 08/01/33 | 31402G7A5 | 134,944 | $137,671.40 | 0.16% |
| FNARM VRN 06/01/32 | 31385JQ92 | 129,333 | $131,955.74 | 0.15% |
| FHR 2890 AB 3.75 12/15/11 | 31395JR65 | 128,880 | $128,203.89 | 0.15% |
| FNARM 555817 VRN 09/01/33 | 31385XPA9 | 116,822 | $119,861.67 | 0.14% |
| FHARM 847276 VRN 04/01/34 | 3128JRCM6 | 73,021 | $72,512.93 | 0.08% |
| FHR 2539 QB 5.00 09/15/15 | 31393FWB8 | 69,808 | $70,314.57 | 0.08% |
| GNR 2002-26 VRN 02/16/24 | 38373MBR0 | 28,423 | $28,776.06 | 0.03% |
| US 2YR NOTE FUTURE DEC08 | TUZ8 | -25 | -$5,370,705.00 | -6.41% |
| Total Long Positions | | | $89,030,338.45 | |
| Total Short Positions | | | -$5,370,705.00 | |
| Total Fund Assets | | | $83,659,633.45 | 100.00% |
