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, Pennsylvania 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: 10/31/23
Date of Reporting Period: 10/31/23
Item 1. | Reports to Stockholders |
Share Class | Ticker | A | FHEQX | Institutional | FHESX | R6 | FHERX |
Federated Hermes SDG Engagement Equity Fund
A Portfolio of Federated Hermes Adviser Series
1 Year | Start of Performance4 | ||
Class A Shares5 | -2.85% | 2.10% | |
Institutional Shares | 3.08% | 3.47% | |
Class R6 Shares6 | 3.08% | 3.49% | |
Benchmark | 2.28% | 4.25% | |
MGSMSFA | -1.81% | 2.49% |
Country | Percentage of Total Net Assets |
United States | 55.1% |
Japan | 9.2% |
United Kingdom | 8.0% |
Netherlands | 3.0% |
Sweden | 2.4% |
Hong Kong | 2.4% |
Spain | 2.3% |
Italy | 2.3% |
India | 2.3% |
Ireland | 1.9% |
Peru | 1.7% |
Switzerland | 1.7% |
France | 1.7% |
Singapore | 1.7% |
Finland | 1.6% |
Australia | 1.1% |
Other Assets and Liabilities—Net2 | 1.6% |
TOTAL | 100% |
Sector Composition | Percentage of Total Net Assets |
Industrials | 23.7% |
Consumer Discretionary | 14.4% |
Materials | 13.1% |
Financials | 10.7% |
Health Care | 9.4% |
Consumer Staples | 9.1% |
Information Technology | 8.4% |
Real Estate | 5.1% |
Utilities | 2.0% |
Energy | 1.8% |
Communication Services | 0.7% |
Other Assets and Liabilities—Net2 | 1.6% |
TOTAL | 100% |
1 | Country allocations are based primarily on the country in which a company is incorporated. However, the Fund’s Adviser may allocate a company to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities or the country where a majority of the company’s revenues are derived. |
2 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
3 | Except for Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS— 98.4% | |||
Australia— 1.1% | |||
68,089 | Ansell Ltd. | $ 918,101 | |
Finland— 1.6% | |||
41,035 | Huhtamaki Oyj | 1,408,156 | |
France— 1.7% | |||
9,657 | 1 | Silicon-On-Insulator Technologies (SOITEC) | 1,442,460 |
Hong Kong— 2.4% | |||
228,240 | Techtronic Industries Co. | 2,069,968 | |
India— 2.3% | |||
179,914 | Varun Beverages Ltd. | 1,964,888 | |
Ireland— 1.9% | |||
103,366 | Glanbia PLC | 1,628,134 | |
Italy— 2.3% | |||
34,029 | MARR SpA | 404,386 | |
212,369 | Technogym SpA | 1,596,646 | |
TOTAL | 2,001,032 | ||
Japan— 9.2% | |||
30,372 | Horiba Ltd. | 1,533,002 | |
60,922 | NIFCO, Inc. | 1,430,350 | |
32,597 | Nissan Chemical Industries | 1,326,934 | |
32,914 | Open House Co. Ltd. | 1,082,935 | |
50,424 | Yaoko Co. Ltd. | 2,593,697 | |
TOTAL | 7,966,918 | ||
Netherlands— 3.0% | |||
53,128 | Aalberts NV | 1,662,805 | |
7,560 | IMCD Group NV | 911,671 | |
TOTAL | 2,574,476 | ||
Peru— 1.7% | |||
11,935 | Credicorp Ltd. | 1,491,398 | |
Singapore— 1.7% | |||
906,922 | Mapletree Industrial Trust | 1,425,728 | |
Spain— 2.3% | |||
97,239 | Merlin Properties Socimi SA | 812,486 | |
20,805 | Viscofan Industria Navarra De Envolturas Celulosicas SA | 1,204,748 | |
TOTAL | 2,017,234 | ||
Sweden— 2.4% | |||
81,836 | Trelleborg AB, Class B | 2,073,214 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS— continued | |||
Switzerland— 1.7% | |||
2,896 | Burckhardt Compression Holdings AG | $ 1,468,491 | |
United Kingdom— 8.0% | |||
96,624 | Bovis Homes Group PLC | 829,629 | |
241,125 | Breedon Group PLC | 918,066 | |
583,139 | Central Asia Metals PLC | 1,162,593 | |
32,399 | DCC PLC | 1,799,095 | |
219,813 | 1 | Draper Esprit PLC | 629,742 |
511,835 | Harworth Group PLC | 618,156 | |
425,268 | 1 | SSP Group PLC | 931,282 |
TOTAL | 6,888,563 | ||
United States— 55.1% | |||
35,669 | Alliant Energy Corp. | 1,740,291 | |
26,186 | 1 | AMN Healthcare Services, Inc. | 1,986,470 |
18,839 | AptarGroup, Inc. | 2,303,445 | |
8,602 | Assurant, Inc. | 1,280,838 | |
31,658 | Brunswick Corp. | 2,199,281 | |
13,731 | 1 | Chart Industries, Inc. | 1,595,954 |
12,614 | 1 | Clean Harbors, Inc. | 1,938,393 |
3,165 | Cooper Cos., Inc. | 986,689 | |
1,951,727 | 2 | Diversified Energy Co. PLC | 1,588,411 |
14,155 | Eagle Materials, Inc. | 2,178,596 | |
9,502 | Equifax, Inc. | 1,611,254 | |
32,943 | Fortune Brands Innovations, Inc. | 1,838,219 | |
22,228 | 1 | Kirby Corp. | 1,660,432 |
47,353 | LKQ Corp. | 2,079,744 | |
17,051 | 1 | PTC, Inc. | 2,394,301 |
14,539 | Reinsurance Group of America | 2,173,144 | |
130,984 | Retail Opportunity Investments Corp. | 1,537,752 | |
22,791 | RPM International, Inc. | 2,080,135 | |
742,443 | 1 | Samsonite International SA | 2,309,942 |
19,774 | 1 | Silicon Laboratories, Inc. | 1,822,767 |
13,383 | Simpson Manufacturing Co., Inc. | 1,782,348 | |
11,906 | STERIS PLC | 2,500,022 | |
5,338 | West Pharmaceutical Services, Inc. | 1,699,032 | |
10,349 | 1 | WEX, Inc. | 1,722,902 |
19,166 | Wiley (John) & Sons, Inc., Class A | 580,155 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS— continued | |||
United States— continued | |||
26,156 | Wintrust Financial Corp. | $ 1,953,592 | |
TOTAL | 47,544,109 | ||
TOTAL INVESTMENT IN SECURITIES—98.4% (IDENTIFIED COST $78,175,674)3 | 84,882,870 | ||
OTHER ASSETS AND LIABILITIES - NET—1.6%4 | 1,391,378 | ||
TOTAL NET ASSETS—100% | $86,274,248 |
1 | Non-income-producing security. |
2 | Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or availing of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At October 31, 2023, these restricted securities amounted to $1,588,411, which represented 1.8% of total net assets. |
3 | The cost of investments for federal tax purposes amounts to $82,611,632. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | $43,645,756 | $3,898,353 | $— | $47,544,109 |
International | 1,491,398 | 35,847,363 | — | 37,338,761 |
TOTAL SECURITIES | $45,137,154 | $39,745,716 | $— | $84,882,870 |
Year Ended October 31, | Period Ended 10/31/20201 | |||
2023 | 2022 | 2021 | ||
Net Asset Value, Beginning of Period | $11.11 | $13.98 | $10.31 | $11.24 |
Income From Investment Operations: | ||||
Net investment income2 | 0.09 | 0.09 | 0.04 | 0.07 |
Net realized and unrealized gain (loss) | 0.22 | (2.92) | 3.74 | (0.83) |
TOTAL FROM INVESTMENT OPERATIONS | 0.31 | (2.83) | 3.78 | (0.76) |
Less Distributions: | ||||
Distributions from net investment income | (0.01) | (0.04) | (0.11) | (0.12) |
Distributions from net realized gain | — | — | — | (0.05) |
TOTAL DISTRIBUTIONS | (0.01) | (0.04) | (0.11) | (0.17) |
Net Asset Value, End of Period | $11.41 | $11.11 | $13.98 | $10.31 |
Total Return3 | 2.83% | (20.31)% | 36.82% | (6.87)% |
Ratios to Average Net Assets: | ||||
Net expenses4 | 1.19%5 | 1.19% | 1.19%5 | 1.19%5,6 |
Net investment income | 0.71% | 0.69% | 0.34% | 0.70%6 |
Expense waiver/reimbursement7 | 0.38% | 0.57% | 0.62% | 1.31%6 |
Supplemental Data: | ||||
Net assets, end of period (000 omitted) | $256 | $156 | $194 | $158 |
Portfolio turnover8 | 14% | 15% | 13% | 52%9 |
1 | Reflects operations for the period from November 5, 2019 (commencement of operations) to October 31, 2020. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 1.19% and 1.18% for the years ended October 31, 2023 and 2021, respectively, and 1.17% for the period ended October 31, 2020, after taking into account these expense reductions. |
6 | Computed on an annualized basis. |
7 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
8 | Securities that mature are considered sales for purposes of this calculation. |
9 | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the fiscal period ended October 31, 2020. |
Year Ended October 31, | Period Ended 10/31/20191 | ||||
2023 | 2022 | 2021 | 2020 | ||
Net Asset Value, Beginning of Period | $11.14 | $14.05 | $10.34 | $11.05 | $10.00 |
Income From Investment Operations: | |||||
Net investment income2 | 0.12 | 0.12 | 0.07 | 0.07 | 0.12 |
Net realized and unrealized gain (loss) | 0.22 | (2.93) | 3.75 | (0.61) | 0.93 |
TOTAL FROM INVESTMENT OPERATIONS | 0.34 | (2.81) | 3.82 | (0.54) | 1.05 |
Less Distributions: | |||||
Distributions from net investment income | (0.04) | (0.10) | (0.11) | (0.12) | — |
Distributions from net realized gain | — | — | — | (0.05) | — |
TOTAL DISTRIBUTIONS | (0.04) | (0.10) | (0.11) | (0.17) | — |
Net Asset Value, End of Period | $11.44 | $11.14 | $14.05 | $10.34 | $11.05 |
Total Return3 | 3.08% | (20.11)% | 37.11% | (4.99)% | 10.50% |
Ratios to Average Net Assets: | |||||
Net expenses4 | 0.94%5 | 0.94% | 0.94%5 | 0.94%5 | 0.94%5,6 |
Net investment income | 0.98% | 0.93% | 0.55% | 0.70% | 1.13%6 |
Expense waiver/reimbursement7 | 0.33% | 0.53% | 0.60% | 1.13% | 1.16%6 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $85,874 | $59,692 | $63,268 | $39,785 | $33,602 |
Portfolio turnover8 | 14% | 15% | 13% | 52% | 13% |
1 | Reflects operations for the period from November 6, 2018 (commencement of operations) to October 31, 2019. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.94%, 0.94% and 0.92% for the years ended October 31, 2023, 2021 and 2020, respectively, and 0.94% for the period ended October 31, 2019, after taking into account these expense reductions. |
6 | Computed on an annualized basis. |
7 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
8 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended October 31, | Period Ended 10/31/20211,2 | ||
2023 | 20221 | ||
Net Asset Value, Beginning of Period | $11.15 | $14.05 | $13.83 |
Income From Investment Operations: | |||
Net investment income (loss)3 | 0.13 | (0.01) | 0.04 |
Net realized and unrealized gain (loss) | 0.21 | (2.79) | 0.18 |
TOTAL FROM INVESTMENT OPERATIONS | 0.34 | (2.80) | 0.22 |
Less Distributions: | |||
Distributions from net investment income | (0.04) | (0.10) | — |
Net Asset Value, End of Period | $11.45 | $11.15 | $14.05 |
Total Return4 | 3.08% | (20.04)% | 1.59% |
Ratios to Average Net Assets: | |||
Net expenses5 | 0.89%6 | 0.89% | 0.87%6,7 |
Net investment income (loss) | 1.03% | (0.13)% | 0.28%7 |
Expense waiver/reimbursement8 | 0.31% | 0.65% | 0.00%7,9 |
Supplemental Data: | |||
Net assets, end of period (000 omitted) | $144 | $140 | $010 |
Portfolio turnover11 | 14% | 15% | 13%12 |
1 | Certain ratios included in Ratios to Average Net Assets and per share amounts may be inflated or deflated as compared to the fee structure for each respective share class as a result of daily systematic allocations being rounded to the nearest penny for fund level income, expense and realized gain/loss amounts. Such differences are immaterial. |
2 | Reflects operations for the period from June 11, 2021 (commencement of operations) to October 31, 2021. |
3 | Per share numbers have been calculated using the average shares method. |
4 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
5 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
6 | The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.89% for the year ended October 31, 2023 and 0.86% for the period ended October 31, 2021, after taking into account these expense reductions. |
7 | Computed on an annualized basis. |
8 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
9 | Represents less than 0.01%. |
10 | Represents less than $1,000. |
11 | Securities that mature are considered sales for purposes of this calculation. |
12 | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the fiscal period ended October 31, 2021. |
Assets: | |
Investment in securities, at value (identified cost $78,175,674) | $84,882,870 |
Cash | 1,436,798 |
Income receivable | 173,158 |
Receivable for shares sold | 151,604 |
Total Assets | 86,644,430 |
Liabilities: | |
Payable for capital gains taxes withheld | 164,198 |
Payable for portfolio accounting fees | 80,616 |
Payable for shares redeemed | 50,619 |
Payable for auditing fees | 31,631 |
Payable for share registration costs | 14,054 |
Payable for custodian fees | 13,396 |
Payable for investment adviser fee (Note 5) | 2,690 |
Accrued expenses (Note 5) | 12,978 |
TOTAL LIABILITIES | 370,182 |
Net assets for 7,539,459 shares outstanding | $86,274,248 |
Net Assets Consist of: | |
Paid-in capital | $83,346,755 |
Total distributable earnings (loss) | 2,927,493 |
TOTAL NET ASSETS | $86,274,248 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($256,219 ÷ 22,458 shares outstanding) no par value, unlimited shares authorized | $11.41 |
Offering price per share (100/94.50 of $11.41) | $12.07 |
Redemption proceeds per share | $11.41 |
Institutional Shares: | |
Net asset value per share ($85,874,434 ÷ 7,504,463 shares outstanding) no par value, unlimited shares authorized | $11.44 |
Offering price per share | $11.44 |
Redemption proceeds per share | $11.44 |
Class R6 Shares: | |
Net asset value per share ($143,595 ÷ 12,538 shares outstanding) no par value, unlimited shares authorized | $11.45 |
Offering price per share | $11.45 |
Redemption proceeds per share | $11.45 |
Investment Income: | |
Dividends (net of foreign taxes withheld of $70,347) | $1,751,913 |
Expenses: | |
Investment adviser fee (Note 5) | $684,271 |
Administrative fee (Note 5) | 71,783 |
Custodian fees | 23,244 |
Transfer agent fees (Note 2) | 78,699 |
Directors’/Trustees’ fees (Note 5) | 867 |
Auditing fees | 36,463 |
Legal fees | 11,183 |
Other service fees (Notes 2 and 5) | 535 |
Portfolio accounting fees | 141,354 |
Share registration costs | 52,736 |
Printing and postage | 22,640 |
Miscellaneous (Note 5) | 37,318 |
TOTAL EXPENSES | 1,161,093 |
Waiver, Reimbursement and Reduction: | |
Waiver of investment adviser fee (Note 5) | (277,849) |
Reimbursement of other operating expenses (Notes 2 and 5) | (21,285) |
Reduction of custodian fees (Note 6) | (7,013) |
TOTAL WAIVER, REIMBURSEMENT AND REDUCTION | (306,147) |
Net expenses | 854,946 |
Net investment income | 896,967 |
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: | |
Net realized gain on investments and foreign currency transactions | 1,292,718 |
Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency (including increase in payable for capital gains taxes withheld of $89,661) | 648,214 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 1,940,932 |
Change in net assets resulting from operations | $2,837,899 |
Year Ended October 31 | 2023 | 2022 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $896,967 | $594,318 |
Net realized gain (loss) | 1,292,718 | (1,060,533) |
Net change in unrealized appreciation/depreciation | 648,214 | (13,968,108) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 2,837,899 | (14,434,323) |
Distributions to Shareholders: | ||
Class A Shares | (232) | (534) |
Institutional Shares | (311,512) | (478,208) |
Class R6 Shares | (555) | (1) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (312,299) | (478,743) |
Share Transactions: | ||
Proceeds from sale of shares | 36,626,388 | 27,402,888 |
Net asset value of shares issued to shareholders in payment of distributions declared | 305,977 | 468,272 |
Cost of shares redeemed | (13,171,406) | (16,432,739) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 23,760,959 | 11,438,421 |
Change in net assets | 26,286,559 | (3,474,645) |
Net Assets: | ||
Beginning of period | 59,987,689 | 63,462,334 |
End of period | $86,274,248 | $59,987,689 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $285 | $(149) |
Institutional Shares | 78,394 | (21,136) |
Class R6 Shares | 20 | — |
TOTAL | $78,699 | $(21,285) |
Other Service Fees Incurred | |
Class A Shares | $535 |
Security | Acquisition Date | Acquisition Cost | Value |
Diversified Energy Co. PLC | 7/24/2020–10/06/2023 | $2,394,385 | $1,588,411 |
Year Ended 10/31/2023 | Year Ended 10/31/2022 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 11,800 | $142,722 | 3,065 | $39,482 |
Shares issued to shareholders in payment of distributions declared | 20 | 232 | 40 | 533 |
Shares redeemed | (3,433) | (43,076) | (2,895) | (32,400) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 8,387 | $99,878 | 210 | $7,615 |
Year Ended 10/31/2023 | Year Ended 10/31/2022 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 3,196,591 | $36,483,666 | 2,175,962 | $27,229,070 |
Shares issued to shareholders in payment of distributions declared | 26,540 | 305,745 | 34,673 | 467,739 |
Shares redeemed | (1,075,002) | (13,128,330) | (1,356,434) | (16,400,339) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 2,148,129 | $23,661,081 | 854,201 | $11,296,470 |
Year Ended 10/31/2023 | Year Ended 10/31/2022 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | — | $— | 12,531 | $134,336 |
Shares issued to shareholders in payment of distributions declared | — | — | — | — |
Shares redeemed | — | — | — | — |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | — | $— | 12,531 | $134,336 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 2,156,516 | $23,760,959 | 866,942 | $11,438,421 |
Increase (Decrease) | |
Paid-In Capital | Total Distributable Earnings (Loss) |
$(227) | $227 |
2023 | 2022 | |
Ordinary income | $312,299 | $478,743 |
Other timing differences | $(167,063) |
Undistributed ordinary income1 | $823,318 |
Net unrealized appreciation | $2,271,238 |
TOTAL | $2,927,493 |
1 | For tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings. |
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 |
Share Class Name | Percentage of Average Daily Net Assets of Class |
Class A Shares | 0.05% |
Purchases | $36,018,230 |
Sales | $11,896,185 |
December 22, 2023
Beginning Account Value 5/1/2023 | Ending Account Value 10/31/2023 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000.00 | $920.90 | $5.76 |
Institutional Shares | $1,000.00 | $921.10 | $4.55 |
Class R6 Shares | $1,000.00 | $921.90 | $4.36 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000.00 | $1,019.21 | $6.06 |
Institutional Shares | $1,000.00 | $1,020.47 | $4.79 |
Class R6 Shares | $1,000.00 | $1,020.67 | $4.58 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.19% |
Institutional Shares | 0.94% |
Class R6 Shares | 0.90% |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd. |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Director and Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, and Federated MDTA LLC; Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and CEO of Passport Research, Ltd.; Director and President, Technology, Federated Services Company. |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Director, KLX Energy Services Holdings, Inc. (oilfield services); former Director of KLX Corp. (aerospace). Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm) and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Lead Director, Member of the Audit and Nominating and Corporate Governance Committees, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor Emerita of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (natural gas). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as Associate General Secretary of the Diocese of Pittsburgh, a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally- Green was appointed by the Supreme Court of Pennsylvania to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); Director, Catholic Charities, Pittsburgh; and Director CNX Resources Corporation (natural gas). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint Francis University. |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber); and Director, The Golisano Children’s Museum of Naples, Florida. |
Madelyn A. Reilly Birth Date: February 2, 1956 Trustee Indefinite Term Began serving: November 2020 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors, Duquesne University (Retired). Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors and Director of Risk Management and Associate General Counsel, Duquesne University. Prior to her work at Duquesne University, Ms. Reilly served as Assistant General Counsel of Compliance and Enterprise Risk as well as Senior Counsel of Environment, Health and Safety, PPG Industries. Ms. Reilly currently serves as a member of the Board of Directors of UPMC Mercy Hospital. |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CONSOL Energy Inc. (now split into two separate publicly traded companies known as CONSOL Energy Inc. and CNX Resources Corp.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and CNX Gas Company; and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: May 2017 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: November 2017 | Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, Inc. in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: May 2017 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Name Birth Date Address Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: May 2017 | Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments. |
Annual Evaluation of Adequacy and Effectiveness
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31423A309
CUSIP 31423A408
Share Class | Ticker | A | FSTRX | C | QCLVX | R | QRLVX | Institutional | FMSTX |
Service | FSTKX | R6 | FSTLX |
Federated Hermes MDT Large Cap Value Fund
A Portfolio of Federated Hermes Adviser Series
1 Year | 5 Years | 10 Years | |
Class A Shares4 | -4.21% | 6.23% | 7.48% |
Class C Shares5 | -0.33% | 6.58% | 7.22% |
Class R Shares5 | 0.88% | 6.97% | 7.61% |
Institutional Shares | 1.58% | 7.68% | 8.32% |
Service Shares | 1.35% | 7.44% | 8.09% |
Class R6 Shares6 | 1.65% | 7.75% | 8.31% |
R1000V | 0.13% | 6.60% | 7.60% |
MLVFA | 0.68% | 7.10% | 7.62% |
Sector Composition | Percentage of Total Net Assets |
Financials | 21.6% |
Health Care | 15.9% |
Industrials | 11.9% |
Consumer Staples | 9.2% |
Energy | 7.7% |
Information Technology | 7.7% |
Consumer Discretionary | 5.7% |
Communication Services | 5.1% |
Materials | 4.9% |
Utilities | 4.9% |
Real Estate | 3.4% |
Securities Lending Collateral2 | 0.8% |
Cash Equivalents3 | 1.6% |
Other Assets and Liabilities—Net4 | (0.4%) |
TOTAL | 100% |
1 | Except for Cash Equivalents, Securities Lending Collateral and Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
2 | Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. |
3 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares | Value | ||
COMMON STOCKS— 98.0% | |||
Communication Services— 5.1% | |||
1,136,466 | 1 | Altice USA, Inc. | $ 3,284,387 |
545,040 | AT&T, Inc. | 8,393,616 | |
209,203 | Comcast Corp., Class A | 8,637,992 | |
41,262 | Electronic Arts, Inc. | 5,107,823 | |
128,397 | 1 | Match Group, Inc. | 4,442,536 |
48,622 | 1 | Meta Platforms, Inc. | 14,648,350 |
33,427 | Omnicom Group, Inc. | 2,504,017 | |
324,920 | 1 | ZoomInfo Technologies, Inc. | 4,210,963 |
TOTAL | 51,229,684 | ||
Consumer Discretionary— 5.7% | |||
323,441 | Advance Auto Parts, Inc. | 16,828,635 | |
49,834 | 1 | Bright Horizons Family Solutions, Inc. | 3,690,706 |
1,100,564 | Gap (The), Inc. | 14,087,219 | |
12,359 | McDonald’s Corp. | 3,240,159 | |
260,048 | PVH Corp. | 19,334,569 | |
TOTAL | 57,181,288 | ||
Consumer Staples— 9.2% | |||
177,115 | Albertsons Cos., Inc. | 3,843,396 | |
99,512 | Archer-Daniels-Midland Co. | 7,122,074 | |
75,946 | Hershey Foods Corp. | 14,228,483 | |
51,845 | Kellanova | 2,616,617 | |
456,325 | Kroger Co. | 20,703,465 | |
76,360 | Molson Coors Beverage Company, Class B | 4,411,317 | |
119,411 | PepsiCo, Inc. | 19,497,428 | |
91,666 | Procter & Gamble Co. | 13,752,650 | |
33,418 | WalMart, Inc. | 5,460,836 | |
TOTAL | 91,636,266 | ||
Energy— 7.7% | |||
50,526 | Chevron Corp. | 7,363,154 | |
63,627 | Devon Energy Corp. | 2,963,109 | |
684,475 | Marathon Oil Corp. | 18,693,012 | |
195,569 | Marathon Petroleum Corp. | 29,579,811 | |
58,235 | Phillips 66 | 6,642,867 | |
92,356 | Valero Energy Corp. | 11,729,212 | |
TOTAL | 76,971,165 | ||
Financials— 21.6% | |||
204,644 | American International Group, Inc. | 12,546,724 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Financials— continued | |||
54,882 | Ameriprise Financial, Inc. | $ 17,264,231 | |
15,602 | Aon PLC | 4,827,259 | |
29,894 | 1 | Arch Capital Group Ltd. | 2,591,212 |
597,063 | Bank of New York Mellon Corp. | 25,375,177 | |
44,738 | 1 | Berkshire Hathaway, Inc., Class B | 15,270,421 |
44,804 | Cboe Global Markets, Inc. | 7,342,928 | |
30,141 | Chubb Ltd. | 6,468,861 | |
25,746 | CME Group, Inc. | 5,495,741 | |
286,809 | Fidelity National Information Services, Inc. | 14,085,190 | |
157,812 | Hartford Financial Services Group, Inc. | 11,591,291 | |
167,528 | Interactive Brokers Group, Inc., Class A | 13,413,967 | |
119,911 | JPMorgan Chase & Co. | 16,674,824 | |
99,137 | Northern Trust Corp. | 6,534,120 | |
231,970 | 1 | PayPal Holdings, Inc. | 12,016,046 |
161,831 | Popular, Inc. | 10,525,488 | |
112,406 | State Street Corp. | 7,264,800 | |
151,728 | The Travelers Cos., Inc. | 25,405,336 | |
TOTAL | 214,693,616 | ||
Health Care— 15.9% | |||
115,817 | Baxter International, Inc. | 3,755,945 | |
44,170 | 1 | Biogen, Inc. | 10,492,142 |
154,653 | Bristol-Myers Squibb Co. | 7,969,269 | |
193,880 | 1 | Centene Corp. | 13,373,842 |
144,889 | Dentsply Sirona, Inc. | 4,406,075 | |
844,639 | 1 | Elanco Animal Health, Inc. | 7,441,270 |
14,711 | Elevance Health, Inc. | 6,621,274 | |
10,364 | Eli Lilly & Co. | 5,740,931 | |
266,297 | Gilead Sciences, Inc. | 20,914,966 | |
24,737 | Humana, Inc. | 12,954,520 | |
160,998 | 1 | Incyte Genomics, Inc. | 8,682,622 |
150,048 | Johnson & Johnson | 22,258,120 | |
14,954 | McKesson Corp. | 6,809,453 | |
174,076 | Merck & Co., Inc. | 17,877,605 | |
272,523 | 1 | Teladoc Health, Inc. | 4,507,530 |
27,333 | Teleflex, Inc. | 5,049,772 | |
TOTAL | 158,855,336 | ||
Industrials— 11.9% | |||
105,803 | 3M Co. | 9,622,783 | |
88,342 | AGCO Corp. | 10,129,294 | |
68,943 | Caterpillar, Inc. | 15,584,565 | |
19,794 | Lennox International, Inc. | 7,334,469 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Industrials— continued | |||
75,708 | Manpower, Inc. | $ 5,297,289 | |
64,243 | Otis Worldwide Corp. | 4,960,202 | |
112,939 | Pentair PLC | 6,564,015 | |
91,528 | 1 | SPX Technologies, Inc. | 7,333,223 |
37,965 | Stanley Black & Decker, Inc. | 3,228,923 | |
66,521 | Trane Technologies plc | 12,659,612 | |
6,809 | 1 | Transdigm Group, Inc. | 5,638,465 |
145,792 | 1 | Uber Technologies, Inc. | 6,309,878 |
236,318 | 1 | United Airlines Holdings, Inc. | 8,273,493 |
8,435 | United Rentals, Inc. | 3,426,887 | |
155,267 | 1 | XPO, Inc. | 11,770,791 |
TOTAL | 118,133,889 | ||
Information Technology— 7.7% | |||
191,833 | Cisco Systems, Inc. | 10,000,254 | |
88,378 | Dell Technologies, Inc. | 5,913,372 | |
172,103 | 1 | DXC Technology Co. | 3,471,318 |
1,008,116 | Hewlett Packard Enterprise Co. | 15,504,824 | |
24,760 | Microchip Technology, Inc. | 1,765,140 | |
240,070 | 1 | Nutanix, Inc. | 8,688,133 |
84,656 | 1 | Salesforce, Inc. | 17,001,464 |
37,694 | Skyworks Solutions, Inc. | 3,269,578 | |
206,928 | Vishay Intertechnology, Inc. | 4,602,079 | |
112,464 | 1 | Zoom Video Communications, Inc. | 6,745,591 |
TOTAL | 76,961,753 | ||
Materials— 4.9% | |||
104,229 | Albemarle Corp. | 13,214,152 | |
187,599 | Berry Global Group, Inc. | 10,317,945 | |
13,343 | Linde PLC | 5,099,161 | |
421,853 | Newmont Corp. | 15,806,832 | |
18,047 | Sherwin-Williams Co. | 4,298,976 | |
TOTAL | 48,737,066 | ||
Real Estate— 3.4% | |||
453,450 | Kilroy Realty Corp. | 12,959,601 | |
66,577 | SBA Communications, Corp. | 13,889,959 | |
254,989 | 2 | SL Green Realty Corp. | 7,468,628 |
TOTAL | 34,318,188 | ||
Utilities— 4.9% | |||
64,623 | Consolidated Edison Co. | 5,673,253 | |
105,215 | Constellation Energy Corp. | 11,880,878 | |
279,834 | Exelon Corp. | 10,896,736 | |
121,931 | Pinnacle West Capital Corp. | 9,044,842 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Utilities— continued | |||
332,838 | Vistra Corp. | $ 10,890,459 | |
TOTAL | 48,386,168 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $909,599,829) | 977,104,419 | ||
INVESTMENT COMPANIES— 2.4% | |||
7,683,040 | Federated Hermes Government Obligations Fund, Premier Shares, 5.26%3 | 7,683,040 | |
16,130,832 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 5.45%3 | 16,130,832 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $23,809,524) | 23,813,872 | ||
TOTAL INVESTMENT IN SECURITIES—100.4% (IDENTIFIED COST $933,409,353)4 | 1,000,918,291 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.4%)5 | (4,477,803) | ||
TOTAL NET ASSETS—100% | $996,440,488 |
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | Total of Affiliated Transactions | |
Value as of 10/31/2022 | $1,509,900 | $21,312,846 | $22,822,746 |
Purchases at Cost | $98,597,991 | $179,026,247 | $277,624,238 |
Proceeds from Sales | $(92,424,851) | $(184,221,862) | $(276,646,713) |
Change in Unrealized Appreciation/ Depreciation | $— | $4,419 | $4,419 |
Net Realized Gain/(Loss) | $— | $9,182 | $9,182 |
Value as of 10/31/2023 | $7,683,040 | $16,130,832 | $23,813,872 |
Shares Held as of 10/31/2023 | 7,683,040 | 16,130,832 | 23,813,872 |
Dividend Income | $76,955 | $947,600 | $1,024,555 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on security lending transactions. |
1 | Non-income-producing security. |
2 | All or a portion of this security is temporarily on loan to unaffiliated broker/dealers. |
3 | 7-day net yield. |
4 | The cost of investments for federal tax purposes amounts to $936,139,884. |
5 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Year Ended October 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $28.89 | $35.46 | $25.00 | $27.31 | $27.84 |
Income From Investment Operations: | |||||
Net investment income1 | 0.36 | 0.35 | 0.34 | 0.37 | 0.40 |
Net realized and unrealized gain (loss) | 0.11 | (1.17) | 10.48 | (1.95) | 1.48 |
TOTAL FROM INVESTMENT OPERATIONS | 0.47 | (0.82) | 10.82 | (1.58) | 1.88 |
Less Distributions: | |||||
Distributions from net investment income | (0.38) | (0.30) | (0.36) | (0.37) | (0.41) |
Distributions from net realized gain | (3.48) | (5.45) | — | (0.36) | (2.00) |
TOTAL DISTRIBUTIONS | (3.86) | (5.75) | (0.36) | (0.73) | (2.41) |
Net Asset Value, End of Period | $25.50 | $28.89 | $35.46 | $25.00 | $27.31 |
Total Return2 | 1.36% | (2.73)% | 43.46% | (5.78)% | 7.41% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.98%4 | 0.98% | 0.98% | 0.98%4 | 0.98%4 |
Net investment income | 1.34% | 1.18% | 1.06% | 1.44% | 1.52% |
Expense waiver/reimbursement5 | 0.21% | 0.19% | 0.19% | 0.23% | 0.22% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $475,426 | $515,670 | $578,491 | $432,229 | $492,088 |
Portfolio turnover6 | 95% | 111% | 70% | 139% | 81% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.98%, 0.98% and 0.98% for the years ended October 31, 2023, 2020 and 2019, respectively, after taking into account these expense reductions. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
6 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended October 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $28.96 | $35.52 | $25.04 | $27.32 | $27.85 |
Income From Investment Operations: | |||||
Net investment income1 | 0.15 | 0.11 | 0.07 | 0.14 | 0.19 |
Net realized and unrealized gain (loss) | 0.11 | (1.16) | 10.51 | (1.91) | 1.47 |
TOTAL FROM INVESTMENT OPERATIONS | 0.26 | (1.05) | 10.58 | (1.77) | 1.66 |
Less Distributions: | |||||
Distributions from net investment income | (0.17) | (0.06) | (0.10) | (0.15) | (0.19) |
Distributions from net realized gain | (3.48) | (5.45) | — | (0.36) | (2.00) |
TOTAL DISTRIBUTIONS | (3.65) | (5.51) | (0.10) | (0.51) | (2.19) |
Net Asset Value, End of Period | $25.57 | $28.96 | $35.52 | $25.04 | $27.32 |
Total Return2 | 0.55% | (3.48)% | 42.34% | (6.53)% | 6.53% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.78%4 | 1.79% | 1.77% | 1.80%4 | 1.77%4 |
Net investment income | 0.55% | 0.38% | 0.27% | 0.64% | 0.74% |
Expense waiver/reimbursement5 | 0.19% | 0.17% | 0.16% | 0.19% | 0.18% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $9,330 | $10,144 | $11,057 | $8,848 | $13,760 |
Portfolio turnover6 | 95% | 111% | 70% | 139% | 81% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 1.78%, 1.80% and 1.77% for the years ended October 31, 2023, 2020 and 2019, respectively, after taking into account these expense reductions. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
6 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended October 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $28.92 | $35.47 | $25.01 | $27.31 | $27.85 |
Income From Investment Operations: | |||||
Net investment income1 | 0.24 | 0.22 | 0.20 | 0.25 | 0.29 |
Net realized and unrealized gain (loss) | 0.11 | (1.15) | 10.49 | (1.94) | 1.47 |
TOTAL FROM INVESTMENT OPERATIONS | 0.35 | (0.93) | 10.69 | (1.69) | 1.76 |
Less Distributions: | |||||
Distributions from net investment income | (0.27) | (0.17) | (0.23) | (0.25) | (0.30) |
Distributions from net realized gain | (3.48) | (5.45) | — | (0.36) | (2.00) |
TOTAL DISTRIBUTIONS | (3.75) | (5.62) | (0.23) | (0.61) | (2.30) |
Net Asset Value, End of Period | $25.52 | $28.92 | $35.47 | $25.01 | $27.31 |
Total Return2 | 0.88% | (3.12)% | 42.86% | (6.20)% | 6.93% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 1.43%4 | 1.43% | 1.40% | 1.43%4 | 1.41%4 |
Net investment income | 0.89% | 0.73% | 0.65% | 1.00% | 1.09% |
Expense waiver/reimbursement5 | 0.19% | 0.20% | 0.16% | 0.22% | 0.18% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $14,962 | $15,260 | $18,448 | $14,572 | $17,450 |
Portfolio turnover6 | 95% | 111% | 70% | 139% | 81% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 1.43%, 1.43% and 1.41% for the years ended October 31, 2023, 2020 and 2019, respectively, after taking into account these expense reductions. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
6 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended October 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $28.91 | $35.47 | $25.01 | $27.33 | $27.86 |
Income From Investment Operations: | |||||
Net investment income1 | 0.42 | 0.42 | 0.42 | 0.42 | 0.46 |
Net realized and unrealized gain (loss) | 0.11 | (1.16) | 10.47 | (1.95) | 1.47 |
TOTAL FROM INVESTMENT OPERATIONS | 0.53 | (0.74) | 10.89 | (1.53) | 1.93 |
Less Distributions: | |||||
Distributions from net investment income | (0.44) | (0.37) | (0.43) | (0.43) | (0.46) |
Distributions from net realized gain | (3.48) | (5.45) | — | (0.36) | (2.00) |
TOTAL DISTRIBUTIONS | (3.92) | (5.82) | (0.43) | (0.79) | (2.46) |
Net Asset Value, End of Period | $25.52 | $28.91 | $35.47 | $25.01 | $27.33 |
Total Return2 | 1.58% | (2.48)% | 43.76% | (5.58)% | 7.64% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.76%4 | 0.76% | 0.76% | 0.76%4 | 0.76%4 |
Net investment income | 1.57% | 1.39% | 1.27% | 1.66% | 1.75% |
Expense waiver/reimbursement5 | 0.19% | 0.18% | 0.17% | 0.20% | 0.19% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $317,853 | $370,565 | $456,561 | $363,057 | $353,550 |
Portfolio turnover6 | 95% | 111% | 70% | 139% | 81% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.76%, 0.76% and 0.76% for the years ended October 31, 2023, 2020 and 2019, respectively, after taking into account these expense reductions. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
6 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended October 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $28.94 | $35.50 | $25.03 | $27.34 | $27.87 |
Income From Investment Operations: | |||||
Net investment income1 | 0.36 | 0.35 | 0.38 | 0.41 | 0.43 |
Net realized and unrealized gain (loss) | 0.11 | (1.16) | 10.45 | (1.99) | 1.45 |
TOTAL FROM INVESTMENT OPERATIONS | 0.47 | (0.81) | 10.83 | (1.58) | 1.88 |
Less Distributions: | |||||
Distributions from net investment income | (0.38) | (0.30) | (0.36) | (0.37) | (0.41) |
Distributions from net realized gain | (3.48) | (5.45) | — | (0.36) | (2.00) |
TOTAL DISTRIBUTIONS | (3.86) | (5.75) | (0.36) | (0.73) | (2.41) |
Net Asset Value, End of Period | $25.55 | $28.94 | $35.50 | $25.03 | $27.34 |
Total Return2 | 1.35% | (2.70)% | 43.44% | (5.77)% | 7.42% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.98%4 | 0.98% | 0.98% | 0.98%4 | 0.98%4 |
Net investment income | 1.34% | 1.18% | 1.07% | 1.44% | 1.53% |
Expense waiver/reimbursement5 | 0.20% | 0.19% | 0.18% | 0.21% | 0.20% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $122,229 | $137,041 | $159,943 | $135,813 | $179,844 |
Portfolio turnover6 | 95% | 111% | 70% | 139% | 81% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.98%, 0.98% and 0.98% for the years ended October 31, 2023, 2020 and 2019, respectively, after taking into account these expense reductions. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
6 | Securities that mature are considered sales for purposes of this calculation. |
Year Ended October 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $28.94 | $35.50 | $25.03 | $27.35 | $27.88 |
Income From Investment Operations: | |||||
Net investment income1 | 0.43 | 0.44 | 0.43 | 0.43 | 0.47 |
Net realized and unrealized gain (loss) | 0.12 | (1.16) | 10.49 | (1.95) | 1.48 |
TOTAL FROM INVESTMENT OPERATIONS | 0.55 | (0.72) | 10.92 | (1.52) | 1.95 |
Less Distributions: | |||||
Distributions from net investment income | (0.46) | (0.39) | (0.45) | (0.44) | (0.48) |
Distributions from net realized gain | (3.48) | (5.45) | — | (0.36) | (2.00) |
TOTAL DISTRIBUTIONS | (3.94) | (5.84) | (0.45) | (0.80) | (2.48) |
Net Asset Value, End of Period | $25.55 | $28.94 | $35.50 | $25.03 | $27.35 |
Total Return2 | 1.65% | (2.41)% | 43.86% | (5.51)% | 7.72% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.69%4 | 0.69% | 0.69% | 0.69%4 | 0.69%4 |
Net investment income | 1.62% | 1.46% | 1.34% | 1.73% | 1.80% |
Expense waiver/reimbursement5 | 0.18% | 0.17% | 0.16% | 0.19% | 0.18% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $56,641 | $49,211 | $57,930 | $36,020 | $42,678 |
Portfolio turnover6 | 95% | 111% | 70% | 139% | 81% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.69%, 0.69% and 0.69% for the years ended October 31, 2023, 2020 and 2019, respectively, after taking into account these expense reductions. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
6 | Securities that mature are considered sales for purposes of this calculation. |
Assets: | |
Investment in securities, at value including $7,378,239 of securities loaned and $23,813,872 of investment in affiliated holdings* (identified cost $933,409,353, including $23,809,524 of identified cost in affiliated holdings) | $1,000,918,291 |
Cash | 307 |
Receivable for investments sold | 9,485,290 |
Income receivable | 924,963 |
Receivable for shares sold | 867,473 |
Income receivable from affiliated holdings | 1,178 |
Total Assets | 1,012,197,502 |
Liabilities: | |
Payable for collateral due to broker for securities lending (Note 2) | 7,683,040 |
Payable for investments purchased | 6,457,531 |
Payable for shares redeemed | 970,365 |
Payable for other service fees (Notes 2 and 5) | 245,019 |
Payable for investment adviser fee (Note 5) | 18,344 |
Payable for distribution services fee (Note 5) | 12,509 |
Payable for administrative fee (Note 5) | 1,377 |
Accrued expenses (Note 5) | 368,829 |
TOTAL LIABILITIES | 15,757,014 |
Net assets for 39,051,298 shares outstanding | $996,440,488 |
Net Assets Consist of: | |
Paid-in capital | $923,434,171 |
Total distributable earnings (loss) | 73,006,317 |
TOTAL NET ASSETS | $996,440,488 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($475,425,938 ÷ 18,641,898 shares outstanding), no par value, unlimited shares authorized | $25.50 |
Offering price per share (100/94.50 of $25.50) | $26.98 |
Redemption proceeds per share | $25.50 |
Class C Shares: | |
Net asset value per share ($9,329,678 ÷ 364,859 shares outstanding), no par value, unlimited shares authorized | $25.57 |
Offering price per share | $25.57 |
Redemption proceeds per share (99.00/100 of $25.57) | $25.31 |
Class R Shares: | |
Net asset value per share ($14,961,586 ÷ 586,211 shares outstanding), no par value, unlimited shares authorized | $25.52 |
Offering price per share | $25.52 |
Redemption proceeds per share | $25.52 |
Institutional Shares: | |
Net asset value per share ($317,853,051 ÷ 12,456,958 shares outstanding), no par value, unlimited shares authorized | $25.52 |
Offering price per share | $25.52 |
Redemption proceeds per share | $25.52 |
Service Shares: | |
Net asset value per share ($122,228,795 ÷ 4,784,330 shares outstanding), no par value, unlimited shares authorized | $25.55 |
Offering price per share | $25.55 |
Redemption proceeds per share | $25.55 |
Class R6 Shares: | |
Net asset value per share ($56,641,440 ÷ 2,217,042 shares outstanding), no par value, unlimited shares authorized | $25.55 |
Offering price per share | $25.55 |
Redemption proceeds per share | $25.55 |
* | See information listed after the Fund’s Portfolio of Investments. |
Investment Income: | |
Dividends (including $947,600 received from an affiliated holding* and net of foreign taxes withheld of $35,603) | $25,321,176 |
Net income on securities loaned (includes $76,955 earned from an affiliated holding* related to cash collateral balances) (Note 2) | 38,703 |
TOTAL INCOME | 25,359,879 |
Expenses: | |
Investment adviser fee (Note 5) | 7,665,748 |
Administrative fee (Note 5) | 851,774 |
Custodian fees | 40,925 |
Transfer agent fees (Note 2) | 1,324,216 |
Directors’/Trustees’ fees (Note 5) | 6,024 |
Auditing fees | 29,422 |
Legal fees | 12,891 |
Distribution services fee (Note 5) | 161,862 |
Other service fees (Notes 2 and 5) | 1,639,668 |
Portfolio accounting fees | 196,746 |
Share registration costs | 102,230 |
Printing and postage | 82,635 |
Miscellaneous (Note 5) | 31,820 |
TOTAL EXPENSES | 12,145,961 |
Waiver, Reimbursements and Reduction: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (2,033,694) |
Reimbursement of other operating expenses (Notes 2 and 5) | (168,641) |
Reduction of custodian fees (Note 6) | (1,186) |
TOTAL WAIVER, REIMBURSEMENTS AND REDUCTION | (2,203,521) |
Net expenses | 9,942,440 |
Net investment income | 15,417,439 |
Realized and Unrealized Gain (Loss) on Investments: | |
Net realized gain on investments (including realized gain of $9,182 on sales of investments in an affiliated holding*) | 10,744,350 |
Net change in unrealized appreciation of investments (including net change in unrealized depreciation of $4,419 of investments in an affiliated holding*) | (7,184,333) |
Net realized and unrealized gain (loss) on investments | 3,560,017 |
Change in net assets resulting from operations | $18,977,456 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended October 31 | 2023 | 2022 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $15,417,439 | $14,813,824 |
Net realized gain | 10,744,350 | 128,191,785 |
Net change in unrealized appreciation/depreciation | (7,184,333) | (172,701,838) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 18,977,456 | (29,696,229) |
Distributions to Shareholders: | ||
Class A Shares | (68,994,802) | (93,646,055) |
Class B Shares1 | (267,268) | (538,080) |
Class C Shares | (1,278,679) | (1,699,538) |
Class R Shares | (1,967,568) | (2,896,905) |
Institutional Shares | (49,849,354) | (75,084,051) |
Service Shares | (18,286,170) | (25,844,538) |
Class R6 Shares | (7,007,009) | (9,468,910) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (147,650,850) | (209,178,077) |
Share Transactions: | ||
Proceeds from sale of shares | 160,434,930 | 150,805,951 |
Net asset value of shares issued to shareholders in payment of distributions declared | 136,731,017 | 196,301,657 |
Cost of shares redeemed | (272,228,694) | (294,089,508) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 24,937,253 | 53,018,100 |
Change in net assets | (103,736,141) | (185,856,206) |
Net Assets: | ||
Beginning of period | 1,100,176,629 | 1,286,032,835 |
End of period | $996,440,488 | $1,100,176,629 |
1 | On February 3, 2023, Class B Shares were converted to Class A Shares. |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $608,041 | $(122,692) |
Class B Shares | 1,146 | (76) |
Class C Shares | 14,611 | — |
Class R Shares | 45,012 | — |
Institutional Shares | 463,742 | (22,112) |
Service Shares | 160,618 | (23,761) |
Class R6 Shares | 31,046 | — |
TOTAL | $1,324,216 | $(168,641) |
Other Service Fees Incurred | |
Class A Shares | $1,286,277 |
Class B Shares | 1,485 |
Class C Shares | 26,427 |
Service Shares | 325,479 |
TOTAL | $1,639,668 |
Fair Value of Securities Loaned | Collateral Received |
$7,378,239 | $7,683,040 |
Year Ended 10/31/2023 | Year Ended 10/31/2022 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 537,480 | $14,380,318 | 648,486 | $19,652,579 |
Shares issued to shareholders in payment of distributions declared | 2,439,741 | 64,383,819 | 2,908,059 | 87,110,119 |
Conversion of Class B Shares to Class A Shares1 | 80,583 | 2,265,996 | — | — |
Shares redeemed | (2,262,638) | (60,662,269) | (2,025,810) | (61,014,767) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 795,166 | $20,367,864 | 1,530,735 | $45,747,931 |
Year Ended 10/31/2023 | Year Ended 10/31/2022 | |||
Class B Shares: | Shares | Amount | Shares | Amount |
Shares sold | 107 | $2,850 | 6,476 | $191,277 |
Shares issued to shareholders in payment of distributions declared | 9,745 | 258,099 | 17,220 | 518,122 |
Conversion of Class B Shares to Class A Shares1 | (80,279) | (2,265,996) | — | — |
Shares redeemed | (8,383) | (233,053) | (46,228) | (1,391,194) |
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS | (78,810) | $(2,238,100) | (22,532) | $(681,795) |
Year Ended 10/31/2023 | Year Ended 10/31/2022 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 110,081 | $2,942,071 | 112,244 | $3,340,504 |
Shares issued to shareholders in payment of distributions declared | 48,269 | 1,276,632 | 56,349 | 1,693,594 |
Shares redeemed | (143,767) | (3,853,548) | (129,632) | (3,879,084) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | 14,583 | $365,155 | 38,961 | $1,155,014 |
Year Ended 10/31/2023 | Year Ended 10/31/2022 | |||
Class R Shares: | Shares | Amount | Shares | Amount |
Shares sold | 61,140 | $1,646,731 | 73,112 | $2,211,315 |
Shares issued to shareholders in payment of distributions declared | 74,510 | 1,967,568 | 96,561 | 2,896,905 |
Shares redeemed | (77,165) | (2,093,800) | (162,027) | (4,833,836) |
NET CHANGE RESULTING FROM CLASS R SHARE TRANSACTIONS | 58,485 | $1,520,499 | 7,646 | $274,384 |
Year Ended 10/31/2023 | Year Ended 10/31/2022 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 3,678,034 | $98,533,160 | 3,367,907 | $100,730,231 |
Shares issued to shareholders in payment of distributions declared | 1,798,395 | 47,483,606 | 2,457,412 | 73,663,709 |
Shares redeemed | (5,838,557) | (155,988,083) | (5,878,407) | (175,865,997) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (362,128) | $(9,971,317) | (53,088) | $(1,472,057) |
Year Ended 10/31/2023 | Year Ended 10/31/2022 | |||
Service Shares: | Shares | Amount | Shares | Amount |
Shares sold | 402,686 | $10,863,370 | 439,614 | $13,314,674 |
Shares issued to shareholders in payment of distributions declared | 592,889 | 15,674,753 | 742,631 | 22,284,393 |
Shares redeemed | (946,923) | (25,469,123) | (952,165) | (28,700,133) |
NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS | 48,652 | $1,069,000 | 230,080 | $6,898,934 |
Year Ended 10/31/2023 | Year Ended 10/31/2022 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,103,304 | $29,800,434 | 398,996 | $11,365,371 |
Shares issued to shareholders in payment of distributions declared | 215,008 | 5,686,540 | 271,098 | 8,134,815 |
Shares redeemed | (801,852) | (21,662,822) | (601,243) | (18,404,497) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | 516,460 | $13,824,152 | 68,851 | $1,095,689 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 992,408 | $24,937,253 | 1,800,653 | $53,018,100 |
1 | On February 3, 2023, Class B Shares were converted to Class A Shares. Within the Statement of Changes in Net Assets, the conversion from Class B Shares is within the Cost of shares redeemed and the conversion to Class A Shares is within Proceeds from sale of shares. |
2023 | 2022 | |
Ordinary income1 | $17,747,899 | $110,649,519 |
Long-term capital gains | $129,902,951 | $98,528,558 |
1 | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Undistributed ordinary income | $1,420,294 |
Undistributed long-term capital gains | $6,807,616 |
Net unrealized appreciation | $64,778,407 |
TOTAL | $73,006,317 |
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 |
Share Class Name | Percentage of Average Daily Net Assets of Class |
Class A Shares | 0.05% |
Class C Shares | 0.75% |
Class R Shares | 0.50% |
Distribution Services Fees Incurred | |
Class B Shares | $4,453 |
Class C Shares | 79,548 |
Class R Shares | 77,861 |
TOTAL | $161,862 |
Purchases | $1,017,049,728 |
Sales | $1,122,281,085 |
December 22, 2023
Beginning Account Value 5/1/2023 | Ending Account Value 10/31/2023 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000.00 | $977.50 | $4.88 |
Class C Shares | $1,000.00 | $973.70 | $8.86 |
Class R Shares | $1,000.00 | $975.10 | $7.12 |
Institutional Shares | $1,000.00 | $979.00 | $3.79 |
Service Shares | $1,000.00 | $977.50 | $4.88 |
Class R6 Shares | $1,000.00 | $979.00 | $3.44 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000.00 | $1,020.27 | $4.99 |
Class C Shares | $1,000.00 | $1,016.23 | $9.05 |
Class R Shares | $1,000.00 | $1,018.00 | $7.27 |
Institutional Shares | $1,000.00 | $1,021.37 | $3.87 |
Service Shares | $1,000.00 | $1,020.27 | $4.99 |
Class R6 Shares | $1,000.00 | $1,021.73 | $3.52 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 0.98% |
Class C Shares | 1.78% |
Class R Shares | 1.43% |
Institutional Shares | 0.76% |
Service Shares | 0.98% |
Class R6 Shares | 0.69% |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd. |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Director and Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, and Federated MDTA LLC; Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and CEO of Passport Research, Ltd.; Director and President, Technology, Federated Services Company. |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Director, KLX Energy Services Holdings, Inc. (oilfield services); former Director of KLX Corp. (aerospace). Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm) and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Lead Director, Member of the Audit and Nominating and Corporate Governance Committees, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor Emerita of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (natural gas). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as Associate General Secretary of the Diocese of Pittsburgh, a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally- Green was appointed by the Supreme Court of Pennsylvania to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); Director, Catholic Charities, Pittsburgh; and Director CNX Resources Corporation (natural gas). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint Francis University. |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber); and Director, The Golisano Children’s Museum of Naples, Florida. |
Madelyn A. Reilly Birth Date: February 2, 1956 Trustee Indefinite Term Began serving: November 2020 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors, Duquesne University (Retired). Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors and Director of Risk Management and Associate General Counsel, Duquesne University. Prior to her work at Duquesne University, Ms. Reilly served as Assistant General Counsel of Compliance and Enterprise Risk as well as Senior Counsel of Environment, Health and Safety, PPG Industries. Ms. Reilly currently serves as a member of the Board of Directors of UPMC Mercy Hospital. |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CONSOL Energy Inc. (now split into two separate publicly traded companies known as CONSOL Energy Inc. and CNX Resources Corp.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and CNX Gas Company; and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: May 2017 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: May 2017 | Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, Inc. in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: May 2017 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Name Birth Date Address Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: May 2017 | Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments. |
Annual Evaluation of Adequacy and Effectiveness
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 314209404
CUSIP 314209503
CUSIP 314209701
CUSIP 314209800
CUSIP 314209602
Item 2. | Code of Ethics |
(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics (the "Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers") that applies to the registrant's Principal Executive Officer and Principal Financial Officer; the registrant's Principal Financial Officer also serves as the Principal Accounting Officer.
(c) There was no amendment to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.
(d) There was no waiver granted, either actual or implicit, from a provision to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.
(e) Not Applicable
(f)(3) The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.
Item 3. Audit Committee Financial Expert
The registrant's Board has determined that each of the following members of the Board's Audit Committee is an “audit committee financial expert,” and is "independent," for purposes of this Item: G. Thomas Hough and Thomas M. O'Neill.
Item 4. | Principal Accountant Fees and Services |
(a) Audit Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2023 – $455,245
Fiscal year ended 2022 - $463,685
(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2023 - $0
Fiscal year ended 2022 - $3,000
Fiscal year ended 2022- Audit consent from prior auditor for N-1A financial highlights.
Amount requiring approval of the registrant’s Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(c) Tax Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2023 - $0
Fiscal year ended 2022 - $0
Amount requiring approval of the registrant’s Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(d) All Other Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2023 - $0
Fiscal year ended 2022 - $0
Amount requiring approval of the registrant’s Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $74,628 and $73,423 respectively. Fiscal year ended 2023- Service fees for analysis of potential Passive Foreign Investment Company holdings. Fiscal year ended 2022- Service fees for analysis of potential Passive Foreign Investment Company holdings.
(e)(1) Audit Committee Policies regarding Pre-approval of Services.
The Audit Committee is required to pre-approve audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor’s independence. Unless a type of service to be provided by the independent auditor has received general pre-approval, it will require specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.
Certain services have the general pre-approval of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate to management its responsibilities to pre-approve services performed by the independent auditor.
The Audit Committee has delegated pre-approval authority to its chairman (the “Chairman”) for services that do not exceed a specified dollar threshold. The Chairman or Chief Audit Executive will report any such pre-approval decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with such pre-approval authority when the Chairman is unavailable.
AUDIT SERVICES
The annual audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee will approve, if necessary, any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.
In addition to the annual audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other audit services, which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain audit services; with limited exception, all other audit services must be specifically pre-approved by the Audit Committee.
AUDIT-RELATED SERVICES
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the RIC’s financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of audit-related services does not impair the independence of the auditor, and has pre-approved certain audit-related services; all other audit-related services must be specifically pre-approved by the Audit Committee.
TAX SERVICES
The Audit Committee believes that the independent auditor can provide tax services to the RIC such as tax compliance, tax planning and tax advice without impairing the auditor’s independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved certain tax services; with limited exception, all tax services involving large and complex transactions must be specifically pre-approved by the Audit Committee.
ALL OTHER SERVICES
With respect to the provision of permissible services other than audit, review or attest services the pre-approval requirement is waived if:
(1) With respect to such services rendered to the Funds, the aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues paid by the audit client to its accountant during the fiscal year in which the services are provided; and,
(2) With respect to such services rendered to the Fund’s investment adviser ( the “Adviser”)and any entity controlling, controlled by to under common control with the Adviser such as affiliated non-U.S. and U.S. funds not under the Audit Committee’s purview and which do not fall within a category of service which has been determined by the Audit Committee not to have a direct impact on the operations or financial reporting of the RIC, the aggregate amount of all services provided constitutes no more than five percent of the total amount of revenues paid to the RIC’s auditor by the RIC, its Adviser and any entity controlling, controlled by, or under common control with the Adviser during the fiscal year in which the services are provided; and
(3) Such services were not recognized by the issuer or RIC at the time of the engagement to be non-audit services; and
(4) Such services are promptly brought to the attention of the Audit Committee and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee who are members of the Board of Directors to whom authority to grant such approvals has been delegated by the Audit Committee.
The Audit Committee may grant general pre-approval to those permissible non-audit services which qualify for pre-approval and which it believes are routine and recurring services, and would not impair the independence of the auditor.
The Securities and Exchange Commission’s (the “SEC”) rules and relevant guidance should be consulted to determine the precise definitions of these services and applicability of exceptions to certain of the prohibitions.
PRE-APPROVAL FEE LEVELS
Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee.
PROCEDURES
Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by the Fund’s Principal Accounting Officer and/or the Chief Audit Executive of Federated Hermes, Inc., only after those individuals have determined that the request or application is consistent with the SEC’s rules on auditor independence.
(e)(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
4(b)
Fiscal year ended 2023 – 0%
Fiscal year ended 2022 - 0%
Percentage of services provided to the registrant’s Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(c)
Fiscal year ended 2023 – 0%
Fiscal year ended 2022 – 0%
Percentage of services provided to the registrant’s Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(d)
Fiscal year ended 2023 – 0%
Fiscal year ended 2022 – 0%
Percentage of services provided to the registrant’s Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
(f) NA
(g) Non-Audit Fees billed to the registrant, the registrant’s Adviser, and certain entities controlling, controlled by or under common control with the Adviser:
Fiscal year ended 2023 - $321,648
Fiscal year ended 2022 - $252,106
(h) The registrant’s Audit Committee has considered that the provision of non-audit services that were rendered to the registrant’s Adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
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 period covered by this 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 December 22, 2023
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 December 22, 2023
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date December 22, 2023