United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-23259
(Investment Company Act File Number)
Federated Hermes Adviser Series
______________________________________________________________
(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: 06/30/2022
Date of Reporting Period: Six months ended 12/31/21
Item 1. | Reports to Stockholders |
Share Class | Ticker | Institutional | FHUMX | R6 | FHURX |
Federated Hermes U.S. SMID Fund
A Portfolio of Federated Hermes Adviser Series
Sector Classification | Percentage of Total Net Assets |
Information Technology | 24.5% |
Industrials | 17.1% |
Financials | 15.4% |
Health Care | 14.8% |
Consumer Discretionary | 14.6% |
Materials | 10.2% |
Communication Services | 2.1% |
Other Assets and Liabilities—Net2 | 1.3% |
TOTAL | 100% |
Shares | Value | ||
Communication Services—2.1% | |||
2,518 | 1 | CarGurus, Inc. | $84,706 |
Consumer Discretionary—14.6% | |||
931 | Brunswick Corp. | 93,780 | |
475 | Columbia Sportswear Co. | 46,284 | |
1,991 | LKQ Corp. | 119,520 | |
16 | 1 | NVR, Inc. | 94,542 |
1,238 | Pulte Group, Inc. | 70,764 | |
1,241 | Service Corp. International | 88,099 | |
1,149 | 1 | Terminix Global Holdings, Inc. | 51,969 |
1,313 | 1 | Vroom, Inc. | 14,167 |
TOTAL | 579,125 | ||
Financials—15.4% | |||
104 | 1 | Alleghany Corp. | 69,429 |
1,243 | Brown & Brown | 87,358 | |
690 | Community Bank System, Inc. | 51,391 | |
1,381 | Lazard Ltd., Class A | 60,253 | |
830 | 1 | Palomar Holdings, Inc. | 53,759 |
442 | Reinsurance Group of America | 48,395 | |
3,549 | Sterling Bancorp | 91,529 | |
45 | White Mountains Insurance Group, Inc. | 45,625 | |
1,108 | Wintrust Financial Corp. | 100,629 | |
TOTAL | 608,368 | ||
Health Care—14.8% | |||
140 | 1 | Abiomed, Inc. | 50,284 |
834 | 1 | AMN Healthcare Services, Inc. | 102,023 |
95 | 1 | Bio-Rad Laboratories, Inc., Class A | 71,779 |
246 | 1 | ICU Medical, Inc. | 58,386 |
610 | 1 | Livanova PLC | 53,332 |
568 | PerkinElmer, Inc. | 114,202 | |
308 | STERIS PLC | 74,970 | |
1,523 | 1 | Vericel Corp | 59,854 |
TOTAL | 584,830 | ||
Industrials—17.1% | |||
451 | 1 | Axon Enterprise, Inc. | 70,807 |
615 | 1 | Chart Industries, Inc. | 98,086 |
731 | 1 | Clean Harbors, Inc. | 72,932 |
Shares | Value | ||
Industrials—continued | |||
912 | Fortune Brands Home & Security, Inc. | $97,493 | |
1,685 | nVent Electric PLC | 64,030 | |
491 | Simpson Manufacturing Co., Inc. | 68,283 | |
1,182 | Smith (A.O.) Corp. | 101,475 | |
594 | Timken Co. | 41,158 | |
580 | Woodward, Inc. | 63,487 | |
TOTAL | 677,751 | ||
Information Technology—24.5% | |||
1,034 | 1 | Altair Engineering, Inc. | 79,949 |
847 | Azenta, Inc. | 87,334 | |
622 | Cognex Corp. | 48,367 | |
102 | 1 | Fair Isaac & Co., Inc. | 44,234 |
391 | 1 | Gartner, Inc., Class A | 130,719 |
154 | Henry Jack & Associates, Inc. | 25,716 | |
147 | Littelfuse, Inc. | 46,258 | |
533 | Maximus, Inc. | 42,464 | |
1,054 | National Instruments Corp. | 46,028 | |
915 | Power Integrations, Inc. | 84,994 | |
397 | 1 | PTC, Inc. | 48,097 |
507 | 1 | Silicon Laboratories, Inc. | 104,655 |
618 | Teradyne, Inc. | 101,062 | |
587 | 1 | WEX, Inc. | 82,409 |
TOTAL | 972,286 | ||
Materials—10.2% | |||
627 | Aptargroup, Inc. | 76,795 | |
1,573 | 1 | Axalta Coating Systems Ltd. | 52,098 |
760 | Eagle Materials, Inc. | 126,510 | |
168 | Martin Marietta Materials | 74,007 | |
739 | RPM International, Inc. | 74,639 | |
TOTAL | 404,049 | ||
TOTAL INVESTMENT IN SECURITIES—98.7% (IDENTIFIED COST $2,672,040)2 | 3,911,115 | ||
OTHER ASSETS AND LIABILITIES - NET—1.3%3 | 50,601 | ||
TOTAL NET ASSETS—100% | $3,961,716 |
Six Months Ended (unaudited) 12/31/2021 | Period Ended 06/30/20211 | |
Net Asset Value, Beginning of Period | $14.69 | $10.00 |
Income From Investment Operations: | ||
Net investment income (loss) | (0.01) | (0.00)2 |
Net realized and unrealized gain | 0.93 | 4.72 |
TOTAL FROM INVESTMENT OPERATIONS | 0.92 | 4.72 |
Less Distributions: | ||
Distributions from net investment income | — | (0.01) |
Distributions from net realized gain | (0.61) | (0.02) |
TOTAL DISTRIBUTIONS | (0.61) | (0.03) |
Net Asset Value, End of Period | $15.00 | $14.69 |
Total Return3 | 6.52% | 47.25% |
Ratios to Average Net Assets: | ||
Net expenses4 | 0.79%5 | 0.83%5 |
Net investment income (loss) | (0.13)%5 | (0.01)%5 |
Expense waiver/reimbursement6 | 6.18%5 | 8.25%5 |
Supplemental Data: | ||
Net assets, end of period (000 omitted) | $3,962 | $3,746 |
Portfolio turnover7 | 5% | 31% |
Six Months Ended (unaudited) 12/31/2021 | Period Ended 06/30/20211 | |
Net Asset Value, Beginning of Period | $14.69 | $14.60 |
Income From Investment Operations: | ||
Net investment income (loss) | 0.002 | (0.00)2 |
Net realized and unrealized gain | 0.92 | 0.09 |
TOTAL FROM INVESTMENT OPERATIONS | 0.92 | 0.09 |
Less Distributions: | ||
Distributions from net realized gain | (0.61) | — |
Net Asset Value, End of Period | $15.00 | $14.69 |
Total Return3 | 6.54% | 0.62% |
Ratios to Average Net Assets: | ||
Net expenses4 | 0.77%5 | 0.73%5 |
Net investment income (loss) | 0.08%5 | (0.73)%5 |
Expense waiver/reimbursement6 | 6.88%5 | 13.36%5 |
Supplemental Data: | ||
Net assets, end of period (000 omitted) | $07 | $07 |
Portfolio turnover8 | 5% | 31%9 |
December 31, 2021 (unaudited)
Assets: | ||
Investment in securities, at value (identified cost $2,672,040) | $3,911,115 | |
Cash | 41,711 | |
Receivable for investments sold | 76,288 | |
Prepaid expenses | 7,572 | |
Income receivable | 686 | |
TOTAL ASSETS | 4,037,372 | |
Liabilities: | ||
Payable for portfolio accounting fees | $42,482 | |
Payable for share registration costs | 20,454 | |
Payable for auditing fees | 10,282 | |
Payable to adviser (Note 5) | 2,264 | |
Payable for administrative fee (Note 5) | 174 | |
TOTAL LIABILITIES | 75,656 | |
Net assets for 264,123 shares outstanding | $3,961,716 | |
Net Assets Consists of: | ||
Paid-in capital | $2,686,896 | |
Total distributable earnings | 1,274,820 | |
TOTAL NET ASSETS | $3,961,716 | |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | ||
Institutional Shares: | ||
$3,961,613 ÷ 264,116 shares outstanding, no par value, unlimited shares authorized | $15.00 | |
Class R6 Shares: | ||
$103 ÷ 7* shares outstanding, no par value, unlimited shares authorized | $15.00 |
Six Months Ended December 31, 2021 (unaudited)
Investment Income: | |||
Dividends | $12,808 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $14,524 | ||
Administrative fee (Note 5) | 1,954 | ||
Custodian fees | 1,913 | ||
Transfer agent fees (Note 2) | 1,460 | ||
Directors’/Trustees’ fees | 453 | ||
Auditing fees | 13,782 | ||
Legal fees | 4,870 | ||
Portfolio accounting fees | 63,112 | ||
Share registration costs | 19,602 | ||
Printing and postage | 9,201 | ||
Miscellaneous (Note 5) | 4,016 | ||
TOTAL EXPENSES | 134,887 | ||
Waiver and Reimbursements: | |||
Waiver of investment adviser fee (Note 5) | $(14,524) | ||
Reimbursement of other operating expenses (Note 5) | (105,134) | ||
TOTAL WAIVER AND REIMBURSEMENTS | (119,658) | ||
Net expenses | 15,229 | ||
Net investment loss | (2,421) | ||
Realized and Unrealized Gain (Loss) on Investments: | |||
Net realized gain on investments | 53,388 | ||
Net change in unrealized appreciation of investments | 191,591 | ||
Net realized and unrealized gain (loss) on investments | 244,979 | ||
Change in net assets resulting from operations | $242,558 |
Six Months Ended (unaudited) 12/31/2021 | Period Ended 6/30/20211 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income (loss) | $(2,421) | $(167) |
Net realized gain | 53,388 | 147,747 |
Net change in unrealized appreciation/depreciation | 191,591 | 1,047,483 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 242,558 | 1,195,063 |
Distributions to Shareholders: | ||
Institutional Shares | (155,099) | (7,698) |
Class R6 Shares | (4) | — |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (155,103) | (155,103) |
Share Transactions: | ||
Proceeds from sale of shares | 3,104 | 2,587,694 |
Net asset value of shares issued to shareholders in payment of distributions declared | 124,701 | 6,178 |
Cost of shares redeemed | (104) | (34,667) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 127,701 | 2,559,195 |
Change in net assets | 215,156 | 3,746,560 |
Net Assets: | ||
Beginning of period | 3,746,560 | — |
End of period | $3,961,716 | $3,746,560 |
Transfer Agent Fees Incurred | |
Institutional Shares | $1,460 |
Six Months Ended 12/31/2021 | Period Ended 06/30/20211 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 206 | $3,104 | 257,079 | $2,587,594 |
Shares issued to shareholders in payment of distributions declared | 8,863 | 124,701 | 484 | 6,178 |
Shares redeemed | (7) | (104) | (2,509) | (34,677) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 9,062 | $127,701 | 255,054 | $2,559,095 |
Six Months Ended 12/31/2021 | Period Ended 06/30/20212 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | — | $— | 7 | $100 |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | — | — | 7 | $100 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 9,062 | $127,701 | 255,061 | $2,559,195 |
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 | $175,603 |
Sales | $260,814 |
Beginning Account Value 7/1/2021 | Ending Account Value 12/31/2021 | Expenses Paid During Period1 | |
Actual: | |||
Institutional Shares | $1,000 | $1,065.20 | $4.11 |
Class R6 Shares | $1,000 | $1,065.40 | $4.01 |
Hypothetical (assuming a 5% return before expenses): | |||
Institutional Shares | $1,000 | $1,021.22 | $4.02 |
Class R6 Shares | $1,000 | $1,021.32 | $3.92 |
Institutional Shares | 0.79% |
Class R6 Shares | 0.77% |
Annual Evaluation of Adequacy and Effectiveness
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31423A515
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 registrant’s most recent fiscal half-year (the registrant’s second fiscal half-year in the case of an annual 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 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 Adviser Series
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date February 22, 2022
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 February 22, 2022
By /S/ Lori A. Hensler
Lori A. Hensler,
Principal Financial Officer
Date February 22, 2022