United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-23259
(Investment Company Act File Number)
Federated Hermes Adviser Series
______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
Peter J. Germain, Esquire
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 5/31/24
Date of Reporting Period: Six months ended 11/30/23
Item 1. | Reports to Stockholders |
Share Class | Ticker | Institutional | PIEFX | R6 | FRIEX |
Federated Hermes Emerging Markets Equity Fund
A Portfolio of Federated Hermes Adviser Series
Country | Percentage of Total Net Assets |
China | 26.2% |
Taiwan | 15.6% |
South Korea | 13.9% |
India | 13.8% |
Brazil | 5.5% |
Argentina | 3.6% |
Malaysia | 3.1% |
Indonesia | 3.0% |
South Africa | 2.1% |
Vietnam | 1.8% |
Saudi Arabia | 1.7% |
Poland | 1.6% |
Kazakhstan | 1.4% |
Peru | 1.1% |
Other2 | 4.1% |
Securities Lending Collateral3 | 0.8% |
Cash Equivalents4 | 2.5% |
Other Assets and Liabilities—Net5 | (1.8%) |
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 | For purposes of this table, country classifications constitute 94.4% of the Fund’s investments. Remaining countries which constitute less than 1.0% of the Fund’s total net assets have been aggregated under the designation “Other.” |
3 | 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. |
4 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing securities lending collateral. |
5 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Sector Classification | Percentage of Total Net Assets |
Information Technology | 23.4% |
Financials | 15.9% |
Industrials | 14.3% |
Consumer Discretionary | 13.3% |
Communication Services | 9.4% |
Materials | 6.3% |
Consumer Staples | 6.1% |
Energy | 5.0% |
Health Care | 3.1% |
Real Estate | 1.7% |
Securities Lending Collateral2 | 0.8% |
Cash Equivalents3 | 2.5% |
Other Assets and Liabilities—Net4 | (1.8%) |
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 other than those representing securities lending collateral. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS— 98.5% | |||
Argentina— 3.6% | |||
1,257 | 1 | Mercadolibre, Inc. | $ 2,036,918 |
Brazil— 5.5% | |||
183,585 | 1 | 3R Petroleum Oleo e Gas SA | 1,118,208 |
48,436 | Localiza Rent A Car SA | 590,831 | |
167,993 | 1 | NU Holdings Ltd./Cayman Islands | 1,367,463 |
TOTAL | 3,076,502 | ||
Chile— 0.8% | |||
8,931 | 2 | Sociedad Quimica Y Minera de Chile, ADR | 448,694 |
China— 26.2% | |||
182,824 | Aier Eye Hospital Group Co., Ltd. | 437,653 | |
197,919 | 1 | Alibaba Group Holding Ltd. | 1,845,524 |
39,360 | 1 | Bilibili, Inc. | 445,582 |
177,956 | China Merchants Bank Co. Ltd. | 622,336 | |
519,000 | CMOC Group Ltd. | 298,160 | |
24,260 | Contemporary Amperex Technology Co. Ltd. | 568,714 | |
116,992 | 1 | Full Truck Alliance Co. Ltd., ADR | 876,270 |
121,200 | KE Holdings, Inc. | 639,475 | |
121,100 | 1 | Kuaishou Technology | 896,900 |
2,190 | Kweichow Moutai Co. Ltd. | 550,772 | |
96,106 | 1 | Meituan | 1,107,908 |
158,104 | Nari Technology Development Co., Ltd. | 488,352 | |
72,350 | Shenzhen Inovance Technology Co. Ltd. | 670,179 | |
71,864 | Tencent Holdings Ltd. | 2,988,212 | |
109,559 | 1 | Wuxi Biologics (Cayman), Inc. | 612,858 |
85,100 | Wuxi Lead Intelligent Equipment Co. Ltd. | 312,387 | |
253 | 1 | WuXi XDC Cayman, Inc. | 926 |
864,022 | Zijin Mining Group Co. Ltd. | 1,371,494 | |
TOTAL | 14,733,702 | ||
Georgia— 0.4% | |||
5,962 | TBC Bank Group PLC | 209,381 | |
Hong Kong— 0.9% | |||
56,794 | AIA Group Ltd. | 487,031 | |
India— 13.8% | |||
18,789 | Data Patterns India Ltd. | 453,677 | |
42,490 | DLF Ltd. | 319,037 | |
9,298 | HDFC Bank Ltd., ADR | 558,252 | |
62,388 | KPIT Technologies Ltd. | 1,122,394 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS— continued | |||
India— continued | |||
14,011 | 1 | Makemytrip Ltd. | $ 591,684 |
90,512 | Max Healthcare Institute Ltd. | 690,414 | |
100,528 | 1 | PB Fintech Ltd. | 1,004,574 |
28,242 | Reliance Industries Ltd. | 805,551 | |
106,096 | Sona Blw Precision Forgings Ltd. | 710,064 | |
113,165 | Varun Beverages Ltd. | 1,500,109 | |
TOTAL | 7,755,756 | ||
Indonesia— 3.0% | |||
2,308,770 | PT Bank Central Asia | 1,337,605 | |
1,134,100 | PT Vale Indonesia Tbk | 329,053 | |
TOTAL | 1,666,658 | ||
Kazakhstan— 1.4% | |||
7,921 | 3 | Kaspi.Kz JSC, GDR | 808,214 |
Malaysia— 3.1% | |||
1,970,700 | CTOS Digital Bhd | 613,485 | |
832,600 | Frontken Corp. Bhd | 568,746 | |
552,800 | Press Metal Aluminium Holdings Bhd | 570,069 | |
TOTAL | 1,752,300 | ||
Nigeria— 0.7% | |||
307,587 | Airtel Africa PLC | 425,450 | |
Peru— 1.1% | |||
8,907 | Southern Copper Corp. | 640,681 | |
Poland— 1.6% | |||
7,972 | 1 | Dino Polska SA | 889,572 |
Saudi Arabia— 1.7% | |||
396,243 | Americana Restaurants International PLC | 359,080 | |
69,033 | Saudi Arabian Oil Co. (Aramco) | 610,900 | |
TOTAL | 969,980 | ||
South Africa— 2.1% | |||
7,712 | Capitec Bank Holdings Ltd. | 804,278 | |
25,606 | Gold Fields Ltd., ADR | 391,516 | |
TOTAL | 1,195,794 | ||
South Korea— 13.9% | |||
33,642 | 1 | Coupang LLC | 514,050 |
14,676 | Kakao Corp. | 575,358 | |
34,613 | KakaoBank Corp. | 704,291 | |
19,367 | Korea Aerospace Industry | 696,492 | |
1,135 | 1 | LG Energy Solution, Ltd. | 400,753 |
6,081 | Samsung Electro-Mechanics Co. | 683,414 | |
39,349 | Samsung Electronics Co. Ltd. | 2,216,127 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS— continued | |||
South Korea— continued | |||
2,872 | Samsung SDI Co. Ltd. | $ 1,053,309 | |
9,373 | SK Hynix, Inc. | 975,161 | |
TOTAL | 7,818,955 | ||
Taiwan— 15.6% | |||
30,063 | AirTac International Group | 1,045,203 | |
8,000 | Alchip Technologies, Ltd. | 790,208 | |
8,274 | ASPEED Technology, Inc. | 781,915 | |
5,000 | eMemory Technology, Inc. | 400,445 | |
37,525 | Hiwin Technologies Corp. | 273,536 | |
35,704 | MediaTek, Inc. | 1,081,244 | |
18,931 | Momo.com, Inc. | 312,933 | |
221,385 | Taiwan Semiconductor Manufacturing Co. Ltd | 4,072,658 | |
TOTAL | 8,758,142 | ||
Turkey— 0.8% | |||
30,554 | Coca-Cola Icecek Uretim AS | 428,153 | |
United Arab Emirates— 0.5% | |||
272,535 | ADNOC Drilling Company P.J.S.C. | 284,968 | |
Vietnam— 1.8% | |||
295,286 | 1 | JSC Bank of Foreign Trade of Vietnam | 1,031,740 |
TOTAL COMMON STOCKS (IDENTIFIED COST $53,872,646) | 55,418,591 | ||
INVESTMENT COMPANIES— 3.3% | |||
442,359 | Federated Hermes Government Obligations Fund, Premier Shares, 5.28%4 | 442,359 | |
1,409,830 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 5.45%4 | 1,410,253 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $1,852,460) | 1,852,612 | ||
TOTAL INVESTMENT IN SECURITIES—101.8% (IDENTIFIED COST $55,725,106)5 | 57,271,203 | ||
OTHER ASSETS AND LIABILITIES - NET—(1.8%)6 | (1,011,676) | ||
TOTAL NET ASSETS—100% | $56,259,527 |
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | Total of Affiliated Transactions | |
Value as of 5/31/2023 | $— | $3,200,612 | $3,200,612 |
Purchases at Cost | $1,427,489 | $9,874,673 | $11,302,162 |
Proceeds from Sales | $(985,130) | $(11,666,088) | $(12,651,218) |
Change in Unrealized Appreciation/ Depreciation | $— | $287 | $287 |
Net Realized Gain/(Loss) | $— | $769 | $769 |
Value as of 11/30/2023 | $442,359 | $1,410,253 | $1,852,612 |
Shares Held as of 11/30/2023 | 442,359 | 1,409,830 | 1,852,189 |
Dividend Income | $95 | $65,809 | $65,904 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions. |
1 | Non-income-producing security. |
2 | All or a portion of this security is temporarily on loan to unaffiliated broker/dealers. |
3 | 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 November 30, 2023, these restricted securities amounted to $808,214, which represented 0.0% of total net assets. |
4 | 7-day net yield. |
5 | Also represents cost of investments for federal tax purposes. |
6 | 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 | ||||
International | $9,135,493 | $46,283,098 | $— | $55,418,591 |
Investment Companies | 1,852,612 | — | — | 1,852,612 |
TOTAL SECURITIES | $10,988,105 | $46,283,098 | $— | $57,271,203 |
The following acronym(s) are used throughout this portfolio: | ||
ADR | —American Depositary Receipt | |
GDR | —Global Depositary Receipt | |
JSC | —Joint Stock Company |
(formerly, Class I Shares)
Six Months Ended (unaudited) 11/30/2023 | Year Ended May 31, | |||||
2023 | 2022 | 2021 | 20202 | 2019 | ||
Net Asset Value, Beginning of Period | $13.41 | $15.25 | $20.47 | $12.16 | $11.23 | $13.23 |
Income From Investment Operations: | ||||||
Net investment income (loss)3 | 0.06 | 0.16 | 0.11 | (0.03) | (0.00)4 | 0.05 |
Net realized and unrealized gain (loss) | 0.10 | (1.87) | (5.33) | 8.34 | 0.98 | (1.84) |
TOTAL FROM INVESTMENT OPERATIONS | 0.16 | (1.71) | (5.22) | 8.31 | 0.98 | (1.79) |
Less Distributions: | ||||||
Distributions from net investment income | — | (0.13) | — | — | (0.05) | (0.02) |
Distributions from net realized gain | — | — | — | — | — | (0.19) |
TOTAL DISTRIBUTIONS | — | (0.13) | — | — | (0.05) | (0.21) |
Payment by Affiliate | — | — | — | — | — | (0.00)4,5 |
Net Asset Value, End of Period | $13.57 | $13.41 | $15.25 | $20.47 | $12.16 | $11.23 |
Total Return6 | 1.19% | (11.20)% | (25.50)% | 68.34% | 8.74% | (13.38)%5 |
Ratios to Average Net Assets: | ||||||
Net expenses7 | 0.98%8 | 0.98% | 0.98% | 0.98% | 1.11% | 1.25% |
Net investment income (loss) | 0.84%8 | 1.14% | 0.57% | (0.19)% | (0.04)% | 0.43% |
Expense waiver/reimbursement9 | 0.73%8 | 0.82% | 0.81% | 1.07% | 2.07% | 1.06% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $55,693 | $60,844 | $55,929 | $53,660 | $13,749 | $11,557 |
Portfolio turnover10 | 15% | 22% | 39% | 13% | 39% | 34% |
1 | PNC Emerging Markets Equity Fund (the “Predecessor Fund”) was reorganized into Federated Hermes Emerging Markets Equity Fund (the “Fund”), a portfolio of the Federated Hermes Adviser Series, as of the close of business on November 15, 2019. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund’s operations. |
2 | Beginning with the year ended May 31, 2020, the Fund was audited by KPMG LLP. The previous years and period ended May 31, 2016 were audited by another independent registered public accounting firm. |
3 | Per share numbers have been calculated using the average shares method. |
4 | Represents less than $0.01. |
5 | During the period ended May 31, 2019, a payment was made by PNC Capital Advisors, LLC (the “former Adviser”) to offset a trade error in the Fund. The payment, net of the error, had no impact to the total return of the Fund. |
6 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
7 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
8 | Computed on an annualized basis. |
9 | 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. |
10 | Securities that mature are considered sales for purposes of this calculation. |
Six Months Ended (unaudited) 11/30/2023 | Year Ended May 31, 2023 | Period Ended 5/31/20221 | |
Net Asset Value, Beginning of Period | $13.41 | $15.25 | $20.80 |
Income From Investment Operations: | |||
Net investment income2 | 0.06 | 0.16 | 0.11 |
Net realized and unrealized gain (loss) | 0.10 | (1.86) | (5.66) |
TOTAL FROM INVESTMENT OPERATIONS | 0.16 | (1.70) | (5.55) |
Less Distributions: | |||
Distributions from net investment income | — | (0.14) | — |
Distributions from net realized gain | — | — | — |
TOTAL DISTRIBUTIONS | — | (0.14) | — |
Net Asset Value, End of Period | $13.57 | $13.41 | $15.25 |
Total Return3 | 1.19% | (11.14)% | (26.68)% |
Ratios to Average Net Assets: | |||
Net expenses4 | 0.92%5 | 0.92% | 0.92%5 |
Net investment income | 0.88%5 | 1.20% | 0.87%5 |
Expense waiver/reimbursement6 | 0.67%5 | 0.76% | 0.87%5 |
Supplemental Data: | |||
Net assets, end of period (000 omitted) | $567 | $527 | $314 |
Portfolio turnover7 | 15% | 22% | 39%8 |
1 | Reflects operations for the period from August 26, 2021 (commencement of operations) to May 31, 2022. |
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 | Computed on an annualized basis. |
6 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
7 | Securities that mature are considered sales for purposes of this calculation. |
8 | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the period ended May 31, 2022. |
Assets: | |
Investment in securities, at value including $429,452 of securities loaned and $1,852,612 of investment in affiliated holdings* (identified cost $55,725,106, including $1,852,460 of identified cost in affiliated holdings) | $57,271,203 |
Cash | 821 |
Income receivable | 19,303 |
Receivable for shares sold | 5,856 |
Income receivable from affiliated holdings | 865 |
Total Assets | 57,298,048 |
Liabilities: | |
Payable for collateral due to broker for securities lending (Note 2) | $442,359 |
Payable for capital gains taxes withheld | 263,193 |
Payable for shares redeemed | 101,192 |
Payable for portfolio accounting fees | 89,145 |
Payable for investments purchased | 69,067 |
Payable for custodian fees | 36,902 |
Payable for transfer agent fees (Note 2) | 6,663 |
Payable for investment adviser fee (Note 5) | 1,916 |
Payable for administrative fee (Note 5) | 344 |
Due to broker | 157 |
Accrued expenses (Note 5) | 27,583 |
TOTAL LIABILITIES | 1,038,521 |
Net assets for 4,146,387 shares outstanding | $56,259,527 |
Net Assets Consist of: | |
Paid-in capital | $67,271,710 |
Total distributable earnings (loss) | (11,012,183) |
TOTAL NET ASSETS | $56,259,527 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Institutional Shares: | |
Net asset value per share ($55,692,681 ÷ 4,104,627 shares outstanding) no par value, unlimited shares authorized | $13.57 |
Class R6 Shares: | |
Net asset value per share ($566,846 ÷ 41,760 shares outstanding) no par value, unlimited shares authorized | $13.57 |
* | See information listed after the Fund’s Portfolio of Investments. |
Investment Income: | |
Dividends (including $65,809 received from an affiliated holding* and net of foreign taxes withheld of $52,691) | $575,778 |
Net income on securities loaned (includes $95 earned from an affiliated holding* related to cash collateral balances) (Note 2) | 13 |
TOTAL INCOME | 575,791 |
Expenses: | |
Investment adviser fee (Note 5) | $283,483 |
Administrative fee (Note 5) | 25,060 |
Custodian fees | 27,943 |
Transfer agent fees (Note 2) | 42,907 |
Directors’/Trustees’ fees (Note 5) | 462 |
Auditing fees | 17,901 |
Legal fees | 5,145 |
Portfolio accounting fees | 68,035 |
Share registration costs | 22,156 |
Printing and postage | 12,955 |
Commitment fees | 7,556 |
Miscellaneous (Note 5) | 24,925 |
TOTAL EXPENSES | 538,528 |
Waiver and Reimbursements: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (209,723) |
Reimbursement of other operating expenses (Notes 2 and 5) | (18,755) |
TOTAL WAIVER AND REIMBURSEMENTS | (228,478) |
Net expenses | 310,050 |
Net investment income | 265,741 |
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: | |
Net realized loss on investments (including net realized gain of $769 on sales of investments in an affiliated holding*) and foreign currency transactions | (4,202,412) |
Net change in unrealized depreciation of investments and translation of assets and liabilities in foreign currency (including net change in unrealized depreciation of $287 of investments in an affiliated holding* and increase in payable for capital gains taxes withheld of $32,325) | 4,187,766 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | (14,646) |
Change in net assets resulting from operations | $251,095 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 11/30/2023 | Year Ended 5/31/2023 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $265,741 | $687,653 |
Net realized loss | (4,202,412) | (1,795,953) |
Net change in unrealized appreciation/depreciation | 4,187,766 | (5,395,845) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 251,095 | (6,504,145) |
Distributions to Shareholders: | ||
Institutional Shares | — | (590,721) |
Class R6 Shares | — | (3,582) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | — | (594,303) |
Share Transactions: | ||
Proceeds from sale of shares | 10,038,732 | 41,105,287 |
Net asset value of shares issued to shareholders in payment of distributions declared | — | 459,104 |
Cost of shares redeemed | (15,401,696) | (29,337,771) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (5,362,964) | 12,226,620 |
Change in net assets | (5,111,869) | 5,128,172 |
Net Assets: | ||
Beginning of period | 61,371,396 | 56,243,224 |
End of period | $56,259,527 | $61,371,396 |
Security | Acquisition Date | Acquisition Cost | Value |
Kaspi.Kz JSC, GDR | 2/17/2022-8/30/2023 | $602,067 | $808,214 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Institutional Shares | $42,859 | $(18,755) |
Class R6 Shares | 48 | — |
TOTAL | $42,907 | $(18,755) |
Fair Value of Securities Loaned | Collateral Received |
$429,452 | $442,359 |
Six Months Ended 11/30/2023 | Year Ended 5/31/2023 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 707,177 | $10,002,176 | 2,988,609 | $40,793,479 |
Shares issued to shareholders in payment of distributions declared | — | — | 34,745 | 457,246 |
Shares redeemed | (1,139,375) | (15,398,288) | (2,154,918) | (29,286,138) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (432,198) | $(5,396,112) | 868,436 | $11,964,587 |
Six Months Ended 11/30/2023 | Year Ended 5/31/2023 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 2,537 | $36,556 | 22,465 | $311,808 |
Shares issued to shareholders in payment of distributions declared | — | — | 141 | 1,858 |
Shares redeemed | (101) | (3,408) | (3,863) | (51,633) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | 2,436 | $33,148 | 18,743 | $262,033 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (429,762) | $(5,362,964) | 887,179 | $12,226,620 |
Short-Term | Long-Term | Total |
$7,142,721 | $1,003,221 | $8,145,942 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Purchases | $8,955,319 |
Sales | $12,024,024 |
Beginning Account Value 6/1/2023 | Ending Account Value 11/30/2023 | Expenses Paid During Period1 | |
Actual: | |||
Institutional Shares | $1,000.00 | $1,011.90 | $4.93 |
Class R6 Shares | $1,000.00 | $1,011.90 | $4.63 |
Hypothetical (assuming a 5% return before expenses): | |||
Institutional Shares | $1,000.00 | $1,020.10 | $4.95 |
Class R6 Shares | $1,000.00 | $1,020.40 | $4.65 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Institutional Shares | 0.98% |
Class R6 Shares | 0.92% |
Annual Evaluation of Adequacy and Effectiveness
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31423A580
Share Class | Ticker | A | PMIEX | C | PIUCX | Institutional | PIUIX | R6 | PEIRX |
Federated Hermes International Equity Fund
A Portfolio of Federated Hermes Adviser Series
Country | Percentage of Total Net Assets2 |
Japan | 14.1% |
United Kingdom | 9.9% |
France | 8.9% |
Canada | 8.4% |
South Korea | 7.5% |
Germany | 6.8% |
China | 4.5% |
Norway | 3.8% |
Ireland | 3.5% |
Other3 | 29.5% |
Cash Equivalents4 | 2.7% |
Other Assets and Liabilities—Net5 | 0.4% |
TOTAL | 100% |
Sector Classification | Percentage of Total Net Assets |
Consumer Discretionary | 17.3% |
Information Technology | 14.2% |
Financials | 14.0% |
Industrials | 12.8% |
Materials | 9.8% |
Health Care | 9.5% |
Communication Services | 7.1% |
Consumer Staples | 6.8% |
Energy | 4.0% |
Real Estate | 1.4% |
Cash Equivalents4 | 2.7% |
Other Assets and Liabilities—Net5 | 0.4% |
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 | As of the date specified above, the Fund owned shares of one or more affiliated investment companies. For purposes of this table, affiliated investment companies (other than an affiliated money market mutual fund) in which the Fund invested greater than 10% of its net assets are not treated as a single portfolio security, but rather the Fund is treated as owning a pro rata portion of each security and each other asset and liability owned by the affiliated investment company. Accordingly, the percentages of total net assets shown in the table will differ from those presented on the Portfolio of Investments. |
3 | For purposes of this table, country classifications constitute 67.4% of the Fund’s investments. Remaining countries have been aggregated under the designation “Other.” |
4 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. |
5 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
6 | Except for Cash Equivalents 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. |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS— 48.9% | |||
Belgium— 0.7% | |||
53,300 | D’Ieteren Group | $ 9,108,039 | |
Canada— 6.0% | |||
111,139 | Canadian Tire Corp. Ltd. | 11,560,684 | |
1,834,400 | Lundin Mining Corp. | 12,707,439 | |
238,886 | Magna International, Inc. | 12,879,546 | |
344,715 | Methanex Corp. | 14,713,801 | |
347,300 | Open Text Corp. | 13,895,071 | |
217,407 | Toronto Dominion Bank | 13,256,388 | |
TOTAL | 79,012,929 | ||
Chile— 0.4% | |||
325,200 | Antofagasta PLC | 5,794,877 | |
China— 1.1% | |||
7,937,000 | Weichai Power Co. Ltd., Class H | 14,591,082 | |
Colombia— 0.1% | |||
34,600 | Tecnoglass, Inc. | 1,205,810 | |
France— 6.5% | |||
145,400 | IPSOS | 7,827,459 | |
426,600 | Michelin (CDGE) | 14,316,722 | |
219,178 | Publicis Groupe | 18,597,399 | |
98,700 | Teleperformance | 13,989,971 | |
218,700 | TotalEnergies SE | 14,891,777 | |
136,657 | Vinci SA | 16,730,730 | |
TOTAL | 86,354,058 | ||
Germany— 4.7% | |||
388,800 | Daimler Truck Holding AG | 12,618,171 | |
555,781 | Deutsche Telekom AG, Class REG | 13,298,711 | |
294,200 | 1 | flatexDEGIRO | 3,421,872 |
64,200 | Hannover Rueckversicherung SE | 15,297,818 | |
41,500 | Muenchener Rueckversicherungs-Gesellschaft AG | 17,652,523 | |
TOTAL | 62,289,095 | ||
Ireland— 2.4% | |||
4,889,054 | 1 | Greencore Group PLC | 6,126,914 |
98,100 | 1 | Jazz Pharmaceuticals PLC | 11,598,363 |
374,688 | Smurfit Kappa Group PLC | 14,224,062 | |
TOTAL | 31,949,339 | ||
Italy— 0.1% | |||
2,474,314 | 1 | Trevi Finanziaria SPA | 673,251 |
Japan— 5.6% | |||
809,700 | Daicel Corp. | 7,774,441 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS— continued | |||
Japan— continued | |||
104,900 | Daito Trust Construction Co. Ltd. | $ 11,548,854 | |
339,800 | Itochu Corp. | 13,223,010 | |
439,300 | KDDI Corp. | 13,722,236 | |
811,200 | Marubeni Corp. | 12,661,936 | |
172,800 | Sony Group Corp. | 14,892,927 | |
TOTAL | 73,823,404 | ||
Netherlands— 0.9% | |||
419,000 | Koninklijke Ahold NV | 12,117,232 | |
Norway— 3.0% | |||
728,144 | DNB Bank ASA | 13,868,019 | |
835,453 | SpareBank 1 SR-Bank ASA | 9,172,910 | |
424,949 | Sparebanken Vest | 3,966,665 | |
385,000 | Yara International ASA | 13,050,980 | |
TOTAL | 40,058,574 | ||
Puerto Rico— 1.1% | |||
194,000 | Popular, Inc. | 14,315,260 | |
Russia— 0.0% | |||
8,422,100 | 1,2 | Alrosa AO | 0 |
Singapore— 0.9% | |||
598,199 | United Overseas Bank Ltd. | 12,192,002 | |
South Korea— 5.9% | |||
197,300 | Kia Corp. | 13,150,042 | |
103,600 | LG Electronics, Inc. | 8,259,265 | |
1,316,380 | LG Uplus Corp. | 10,705,536 | |
278,388 | Samsung Electronics Co. Ltd. | 15,678,748 | |
388,440 | Shinhan Financial Group Co. Ltd. | 11,121,198 | |
183,900 | SK Hynix, Inc. | 19,132,848 | |
TOTAL | 78,047,637 | ||
Sweden— 1.9% | |||
448,600 | Duni AB | 4,502,979 | |
276,826 | Loomis AB | 7,380,276 | |
670,300 | SKF Ab, Class B | 12,607,224 | |
TOTAL | 24,490,479 | ||
Switzerland— 1.2% | |||
155,366 | Novartis AG | 15,192,232 | |
32,433 | 1 | Sandoz Group AG | 926,287 |
TOTAL | 16,118,519 | ||
Thailand— 0.3% | |||
1,564,700 | Tisco Financial Group PCL | 4,326,727 | |
United Kingdom— 6.1% | |||
405,226 | BELLWAY PLC | 11,909,273 | |
948,016 | Inchcape PLC | 7,602,008 | |
39,466 | Linde PLC | 16,329,847 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS— continued | |||
United Kingdom— continued | |||
720,669 | Mondi PLC, SAF | $ 12,724,387 | |
155,600 | Mondi PLC, UK | 2,772,958 | |
175,426 | Next PLC | 17,605,795 | |
258,700 | 1 | Nomad Foods Ltd. | 4,178,005 |
4,768,933 | Taylor Wimpey PLC | 7,831,086 | |
TOTAL | 80,953,359 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $527,861,041) | 647,421,673 | ||
WARRANTS— 0.0% | |||
Italy—0.0% | |||
17,191 | 1 | Trevi Finanziaria SPA, Warrants (IDENTIFIED COST $1,427,898) | 17,047 |
INVESTMENT COMPANIES— 50.7% | |||
12,345,146 | Federated Hermes Government Obligations Fund, Premier Shares, 5.28%3 | 12,345,146 | |
8,832,215 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 5.45%3 | 8,834,865 | |
49,346,812 | Federated Hermes International Growth Fund, Institutional Shares | 651,377,914 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $589,889,818) | 672,557,925 | ||
TOTAL INVESTMENT IN SECURITIES—99.6% (IDENTIFIED COST $1,119,178,757)4 | 1,319,996,645 | ||
OTHER ASSETS AND LIABILITIES - NET—0.4%5 | 4,983,923 | ||
TOTAL NET ASSETS—100% | $1,324,980,568 |
Federated Hermes Government Obligations Fund, Premier Shares | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | Federated Hermes International Growth Fund, Institutional Shares* | Total of Affiliated Transactions | |
Value as of 5/31/2023 | $9,284,994 | $5,590,881 | $662,979,546 | $677,855,421 |
Purchases at Cost | $85,300,726 | $36,421,028 | $8,000,000 | $129,721,754 |
Proceeds from Sales | $(82,240,574) | $(33,181,099) | $(20,000,000) | $(135,421,673) |
Change in Unrealized Appreciation/ Depreciation | $— | $572 | $5,336,213 | $5,336,785 |
Net Realized Gain/(Loss) | $— | $3,483 | $(4,937,845) | $(4,934,362) |
Value as of 11/30/2023 | $12,345,146 | $8,834,865 | $651,377,914 | $672,557,925 |
Shares Held as of 11/30/2023 | 12,345,146 | 8,832,215 | 49,346,812 | 70,524,173 |
Dividend Income | $245,084 | $315,013 | $— | $560,097 |
* | At November 30, 2023, the Fund owns a majority of the outstanding shares of beneficial interest of Federated Hermes International Growth Fund. |
1 | Non-income-producing security. |
2 | Market quotations and price evaluations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established by and under the general supervision of the Fund’s Adviser acting through its Valuation Committee. |
3 | 7-day net yield. |
4 | Also represents cost of investments for federal tax purposes. |
5 | 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 | ||||
International | $142,157,583 | $505,264,090 | $0 | $647,421,673 |
Warrants | ||||
International | 17,047 | — | — | 17,047 |
Investment Companies | 672,557,925 | — | — | 672,557,925 |
TOTAL SECURITIES | $814,732,555 | $505,264,090 | $0 | $1,319,996,645 |
Six Months Ended (unaudited) 11/30/2023 | Year Ended May 31, | |||||
2023 | 2022 | 2021 | 20202 | 2019 | ||
Net Asset Value, Beginning of Period | $21.85 | $24.31 | $32.75 | $21.95 | $22.13 | $24.57 |
Income From Investment Operations: | ||||||
Net investment income3 | 0.07 | 0.29 | 0.22 | 0.12 | 0.09 | 0.24 |
Net realized and unrealized gain (loss) | 0.78 | (1.41) | (5.04) | 10.95 | (0.01) | (2.11) |
TOTAL FROM INVESTMENT OPERATIONS | 0.85 | (1.12) | (4.82) | 11.07 | 0.08 | (1.87) |
Less Distributions: | ||||||
Distributions from net investment income | — | (0.13) | (0.27) | (0.27) | (0.26) | (0.17) |
Distributions from net realized gain | — | (1.21) | (3.35) | — | — | (0.40) |
TOTAL DISTRIBUTIONS | — | (1.34) | (3.62) | (0.27) | (0.26) | (0.57) |
Payment by Affiliate | — | — | — | — | — | 0.004,5 |
Net Asset Value, End of Period | $22.70 | $21.85 | $24.31 | $32.75 | $21.95 | $22.13 |
Total Return6 | 3.89% | (4.33)% | (16.35)% | 50.59% | 0.22% | (7.43)%4 |
Ratios to Average Net Assets: | ||||||
Net expenses7 | 0.78%8,9 | 0.77%9 | 0.78% | 1.15% | 1.22% | 1.25% |
Net investment income | 0.67%8 | 1.34% | 0.72% | 0.45% | 0.42% | 1.01% |
Expense waiver/reimbursement10 | 0.55%8 | 0.54% | 0.53% | 0.15% | 0.21% | 0.06% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $21,723 | $22,383 | $26,593 | $47,387 | $39,253 | $58,932 |
Portfolio turnover11 | 3% | 15% | 24% | 44% | 36% | 28% |
1 | PNC International Equity Fund (the “Predecessor Fund”) was reorganized into the Fund, as of the close of business on November 15, 2019. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund’s operations. |
2 | Beginning with the year ended May 31, 2020, the Fund was audited by KPMG LLP. The previous year was audited by another independent registered public accounting firm. |
3 | Per share numbers have been calculated using the average shares method. |
4 | During the period ended May 31, 2019, a payment was made by PNC Capital Advisors, LLC (the “former Adviser”) to offset a trade error in the Fund. The payment, net of the error, had no impact to the total return of the Fund. |
5 | Represents less than $0.01. |
6 | 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. |
7 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
8 | Computed on an annualized basis. |
9 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 0.78% for the six months ended November 30, 2023 and 0.77% for the year ended May 31, 2023, after taking into account these expense reduction. |
10 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
11 | Securities that mature are considered sales for purposes of this calculation. |
Six Months Ended (unaudited) 11/30/2023 | Year Ended May 31, | |||||
2023 | 2022 | 2021 | 20202 | 2019 | ||
Net Asset Value, Beginning of Period | $20.53 | $22.96 | $31.12 | $20.87 | $21.12 | $23.50 |
Income From Investment Operations: | ||||||
Net investment income (loss)3 | (0.01) | 0.12 | 0.01 | (0.07) | (0.00)4 | 0.08 |
Net realized and unrealized gain (loss) | 0.73 | (1.34) | (4.78) | 10.40 | (0.09) | (2.02) |
TOTAL FROM INVESTMENT OPERATIONS | 0.72 | (1.22) | (4.77) | 10.33 | (0.09) | (1.94) |
Less Distributions: | ||||||
Distributions from net investment income | — | — | (0.04) | (0.08) | (0.16) | (0.04) |
Distributions from net realized gain | — | (1.21) | (3.35) | — | — | (0.40) |
TOTAL DISTRIBUTIONS | — | (1.21) | (3.39) | (0.08) | (0.16) | (0.44) |
Payment by Affiliate | — | — | — | — | — | 0.004,5 |
Net Asset Value, End of Period | $21.25 | $20.53 | $22.96 | $31.12 | $20.87 | $21.12 |
Total Return6 | 3.51% | (5.07)% | (16.97)% | 49.53% | (0.54)% | (8.11)%5 |
Ratios to Average Net Assets: | ||||||
Net expenses7 | 1.53%8,9 | 1.52%9 | 1.53% | 1.90% | 1.96% | 1.97% |
Net investment income (loss) | (0.07)%8 | 0.56% | 0.04% | (0.28)% | (0.02)% | 0.35% |
Expense waiver/reimbursement10 | 0.55%8 | 0.55% | 0.53% | 0.17% | 0.36% | 0.55% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $3,040 | $3,451 | $4,355 | $6,032 | $4,978 | $5,895 |
Portfolio turnover11 | 3% | 15% | 24% | 44% | 36% | 28% |
1 | The Predecessor Fund was reorganized into the Fund, as of the close of business on November 15, 2019. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund’s operations. |
2 | Beginning with the year ended May 31, 2020, the Fund was audited by KPMG LLP. The previous year was audited by another independent registered public accounting firm. |
3 | Per share numbers have been calculated using the average shares method. |
4 | Represents less than $0.01. |
5 | During the period ended May 31, 2019, a payment was made by the former Adviser to offset a trade error in the Fund. The payment, net of the error, had no impact to the total return of the Fund. |
6 | 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. |
7 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
8 | Computed on an annualized basis. |
9 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 1.53% for the six months ended November 30, 2023 and 1.52% for the year ended May 31, 2023, after taking into account these expense reduction. |
10 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
11 | Securities that mature are considered sales for purposes of this calculation. |
(formerly, Class I Shares)
Six Months Ended (unaudited) 11/30/2023 | Year Ended May 31, | |||||
2023 | 2022 | 2021 | 20202 | 2019 | ||
Net Asset Value, Beginning of Period | $22.10 | $24.59 | $33.10 | $22.17 | $22.34 | $24.79 |
Income From Investment Operations: | ||||||
Net investment income3 | 0.10 | 0.36 | 0.33 | 0.20 | 0.24 | 0.30 |
Net realized and unrealized gain (loss) | 0.79 | (1.44) | (5.12) | 11.07 | (0.10) | (2.12) |
TOTAL FROM INVESTMENT OPERATIONS | 0.89 | (1.08) | (4.79) | 11.27 | 0.14 | (1.82) |
Less Distributions: | ||||||
Distributions from net investment income | — | (0.20) | (0.37) | (0.34) | (0.31) | (0.23) |
Distributions from net realized gain | — | (1.21) | (3.35) | — | — | (0.40) |
TOTAL DISTRIBUTIONS | — | (1.41) | (3.72) | (0.34) | (0.31) | (0.63) |
Payment by Affiliate | — | — | — | — | — | 0.004,5 |
Net Asset Value, End of Period | $22.99 | $22.10 | $24.59 | $33.10 | $22.17 | $22.34 |
Total Return6 | 4.03% | (4.11)% | (16.14)% | 51.01% | 0.47% | (7.12)%4 |
Ratios to Average Net Assets: | ||||||
Net expenses7 | 0.53%8,9 | 0.53%9 | 0.53% | 0.90% | 0.96% | 0.94% |
Net investment income | 0.92%8 | 1.60% | 1.10% | 0.71% | 1.04% | 1.28% |
Expense waiver/reimbursement10 | 0.55%8 | 0.55% | 0.55% | 0.18% | 0.07% | 0.00%11 |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $941,839 | $934,400 | $959,639 | $1,034,047 | $769,635 | $939,068 |
Portfolio turnover12 | 3% | 15% | 24% | 44% | 36% | 28% |
1 | The Predecessor Fund was reorganized into the Fund, as of the close of business on November 15, 2019. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund’s operations. |
2 | Beginning with the year ended May 31, 2020, the Fund was audited by KPMG LLP. The previous year was audited by another independent registered public accounting firm. |
3 | Per share numbers have been calculated using the average shares method. |
4 | During the period ended May 31, 2019, a payment was made by the former Adviser to offset a trade error in the Fund. The payment, net of the error, had no impact to the total return of the Fund. |
5 | Represents less than $0.01. |
6 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
7 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
8 | Computed on an annualized basis. |
9 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 0.53% for the six months ended November 30, 2023 and 0.52% for the year ended May 31, 2023, after taking into account these expense reduction. |
10 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
11 | Represents less than 0.01%. |
12 | Securities that mature are considered sales for purposes of this calculation. |
Six Months Ended (unaudited) 11/30/2023 | Year Ended May 31, | Period Ended 5/31/20192 | ||||
2023 | 2022 | 2021 | 20203 | |||
Net Asset Value, Beginning of Period | $22.11 | $24.60 | $33.11 | $22.18 | $22.34 | $25.51 |
Income From Investment Operations: | ||||||
Net investment income4 | 0.11 | 0.35 | 0.33 | 0.21 | 0.24 | 0.39 |
Net realized and unrealized gain (loss) | 0.78 | (1.42) | (5.11) | 11.07 | (0.08) | (2.92) |
TOTAL FROM INVESTMENT OPERATIONS | 0.89 | (1.07) | (4.78) | 11.28 | 0.16 | (2.53) |
Less Distributions: | ||||||
Distributions from net investment income | — | (0.21) | (0.38) | (0.35) | (0.32) | (0.24) |
Distributions from net realized gain | — | (1.21) | (3.35) | — | — | (0.40) |
TOTAL DISTRIBUTIONS | — | (1.42) | (3.73) | (0.35) | (0.32) | (0.64) |
Payment by Affiliate | — | — | — | — | — | 0.005,6 |
Net Asset Value, End of Period | $23.00 | $22.11 | $24.60 | $33.11 | $22.18 | $22.34 |
Total Return7 | 4.03% | (4.06)% | (16.10)% | 51.04% | 0.56% | (9.17)%5 |
Ratios to Average Net Assets: | ||||||
Net expenses8 | 0.49%9,10 | 0.48%10 | 0.49% | 0.86% | 0.90% | 0.89%9 |
Net investment income | 0.96%9 | 1.58% | 1.09% | 0.75% | 1.07% | 1.76%9 |
Expense waiver/reimbursement11 | 0.50%9 | 0.51% | 0.50% | 0.14% | 0.10% | 0.02%9 |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $358,378 | $370,914 | $507,249 | $676,137 | $502,786 | $595,000 |
Portfolio turnover12 | 3% | 15% | 24% | 44% | 36% | 28%13 |
1 | The Predecessor Fund was reorganized into the Fund, as of the close of business on November 15, 2019. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund’s operations. |
2 | Reflects operations for the period from June 11, 2018 (commencement of operations) to May 31, 2019. |
3 | Beginning with the year ended May 31, 2020, the Fund was audited by KPMG LLP. The previous period was audited by another independent registered public accounting firm. |
4 | Per share numbers have been calculated using the average shares method. |
5 | During the period ended May 31, 2019, a payment was made by the former Adviser to offset a trade error in the Fund. The payment, net of the error, had no impact to the total return of the Fund. |
6 | Represents less than $0.01. |
7 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
8 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
9 | Computed on an annualized basis. |
10 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 0.49% for the six months ended November 30, 2023 and 0.48% for the year ended May 31, 2023, after taking into account these expense reduction. |
11 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
12 | Securities that mature are considered sales for purposes of this calculation. |
13 | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the fiscal year ended May 31, 2019. |
Assets: | |
Investment in securities, at value including $672,557,925 of investment in affiliated holdings* (identified cost $1,119,178,757, including $589,889,818 of identified cost in affiliated holdings) | $1,319,996,645 |
Cash | 2,271 |
Income receivable | 3,630,847 |
Receivable for shares sold | 2,628,860 |
Income receivable from affiliated holdings | 322 |
Due from custodian | 158 |
Total Assets | 1,326,259,103 |
Liabilities: | |
Payable for shares redeemed | $833,788 |
Payable for custodian fees | 141,560 |
Payable for portfolio accounting fees | 136,720 |
Payable for transfer agent fees (Note 2) | 66,011 |
Payable for capital gains taxes withheld | 40,305 |
Payable for investment adviser fee (Note 5) | 16,856 |
Payable for other service fees (Notes 2 and 5) | 4,701 |
Payable for administrative fee (Note 5) | 3,030 |
Payable for distribution services fee (Note 5) | 1,837 |
Payable for investments purchased | 135 |
Accrued expenses (Note 5) | 33,592 |
TOTAL LIABILITIES | 1,278,535 |
Net assets for 57,652,247 shares outstanding | $1,324,980,568 |
Net Assets Consist of: | |
Paid-in capital | $1,135,837,120 |
Total distributable earnings (loss) | 189,143,448 |
TOTAL NET ASSETS | $1,324,980,568 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($21,723,112 ÷ 957,093 shares outstanding) no par value, unlimited shares authorized | $22.70 |
Offering price per share (100/94.50 of $22.70) | $24.02 |
Redemption proceeds per share | $22.70 |
Class C Shares: | |
Net asset value per share ($3,040,273 ÷ 143,088 shares outstanding) no par value, unlimited shares authorized | $21.25 |
Offering price per share | $21.25 |
Redemption proceeds per share (99.00/100 of $21.25) | $21.04 |
Institutional Shares: | |
Net asset value per share ($941,839,096 ÷ 40,971,628 shares outstanding) no par value, unlimited shares authorized | $22.99 |
Offering price per share | $22.99 |
Redemption proceeds per share | $22.99 |
Class R6 Shares: | |
Net asset value per share ($358,378,087 ÷ 15,580,438 shares outstanding) no par value, unlimited shares authorized | $23.00 |
Offering price per share | $23.00 |
Redemption proceeds per share | $23.00 |
* | See information listed after the Fund’s Portfolio of Investments. |
Investment Income: | |
Dividends (including $560,097 received from affiliated holdings* and net of foreign taxes withheld of $1,361,949) | $9,602,995 |
Expenses: | |
Investment adviser fee (Note 5) | $5,648,206 |
Administrative fee (Note 5) | 517,822 |
Custodian fees | 100,886 |
Transfer agent fees (Note 2) | 489,382 |
Directors’/Trustees’ fees (Note 5) | 3,648 |
Auditing fees | 17,901 |
Legal fees | 5,832 |
Distribution services fee (Note 5) | 12,443 |
Other service fees (Notes 2 and 5) | 31,448 |
Portfolio accounting fees | 103,680 |
Share registration costs | 40,998 |
Printing and postage | 41,555 |
Miscellaneous (Note 5) | 36,095 |
TOTAL EXPENSES | 7,049,896 |
Waiver, Reimbursements and Reduction: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (3,339,154) |
Reimbursement of other operating expenses (Notes 2 and 5) | (228,625) |
Reduction of custodian fees (Note 6) | (317) |
TOTAL WAIVER, REIMBURSEMENTS AND REDUCTION | (3,568,096) |
Net expenses | 3,481,800 |
Net investment income | 6,121,195 |
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: | |
Net realized gain on investments (including net realized loss of $(4,934,362) on sales of investments in affiliated holdings*) and foreign currency transactions | 2,803,806 |
Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency (including net change in unrealized appreciation of $5,336,785 of investments in affiliated holdings* and increase in payable for capital gains taxes withheld of $4,917) | 41,109,752 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 43,913,558 |
Change in net assets resulting from operations | $50,034,753 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 11/30/2023 | Year Ended 5/31/2023 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $6,121,195 | $21,568,465 |
Net realized gain (loss) | 2,803,806 | (25,135,585) |
Net change in unrealized appreciation/depreciation | 41,109,752 | (57,325,775) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 50,034,753 | (60,892,895) |
Distributions to Shareholders: | ||
Class A Shares | — | (1,322,198) |
Class C Shares | — | (210,389) |
Institutional Shares | — | (55,696,415) |
Class R6 Shares | — | (25,818,914) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | — | (83,047,916) |
Share Transactions: | ||
Proceeds from sale of shares | 99,703,414 | 312,522,522 |
Net asset value of shares issued to shareholders in payment of distributions declared | — | 70,003,903 |
Cost of shares redeemed | (155,906,044) | (405,272,703) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (56,202,630) | (22,746,278) |
Change in net assets | (6,167,877) | (166,687,089) |
Net Assets: | ||
Beginning of period | 1,331,148,445 | 1,497,835,534 |
End of period | $1,324,980,568 | $1,331,148,445 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $11,161 | $(5,676) |
Class C Shares | 1,677 | (837) |
Institutional Shares | 457,864 | (222,112) |
Class R6 Shares | 18,680 | — |
TOTAL | $489,382 | $(228,625) |
Other Service Fees Incurred | |
Class A Shares | $27,307 |
Class C Shares | 4,141 |
TOTAL | $31,448 |
Six Months Ended 11/30/2023 | Year Ended 5/31/2023 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 63,458 | $1,416,409 | 229,542 | $5,081,544 |
Shares issued to shareholders in payment of distributions declared | — | — | 60,252 | 1,253,242 |
Shares redeemed | (130,741) | (2,905,641) | (359,156) | (8,015,275) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | (67,283) | $(1,489,232) | (69,362) | $(1,680,489) |
Six Months Ended 11/30/2023 | Year Ended 5/31/2023 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 3,650 | $76,291 | 5,693 | $117,175 |
Shares issued to shareholders in payment of distributions declared | — | — | 10,519 | 206,282 |
Shares redeemed | (28,620) | (580,337) | (37,869) | (768,476) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (24,970) | $(504,046) | (21,657) | $(445,019) |
Six Months Ended 11/30/2023 | Year Ended 5/31/2023 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 3,658,604 | $82,202,039 | 12,608,834 | $276,927,145 |
Shares issued to shareholders in payment of distributions declared | — | — | 2,535,210 | 53,290,111 |
Shares redeemed | (4,962,154) | (109,725,274) | (11,893,971) | (264,620,346) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (1,303,550) | $(27,523,235) | 3,250,073 | $65,596,910 |
Six Months Ended 11/30/2023 | Year Ended 5/31/2023 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 711,141 | $16,008,675 | 1,374,852 | $30,396,658 |
Shares issued to shareholders in payment of distributions declared | — | — | 725,703 | 15,254,268 |
Shares redeemed | (1,904,982) | (42,694,792) | (5,944,559) | (131,868,606) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | (1,193,841) | $(26,686,117) | (3,844,004) | $(86,217,680) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (2,589,644) | $(56,202,630) | (684,950) | $(22,746,278) |
Short-Term | Long-Term | Total |
$5,011,011 | $18,189,921 | $23,200,932 |
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 |
Percentage of Average Daily Net Assets of Class | |
Class A Shares | 0.05% |
Class C Shares | 0.75% |
Distribution Services Fees Incurred | |
Class C Shares | $12,443 |
Purchases | $44,893,291 |
Sales | $102,204,104 |
Beginning Account Value 6/1/2023 | Ending Account Value 11/30/2023 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000.00 | $1,038.90 | $3.982 |
Class C Shares | $1,000.00 | $1,035.10 | $7.783 |
Institutional Shares | $1,000.00 | $1,040.30 | $2.704 |
Class R6 Shares | $1,000.00 | $1,040.30 | $2.505 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000.00 | $1,021.10 | $3.942 |
Class C Shares | $1,000.00 | $1,017.35 | $7.723 |
Institutional Shares | $1,000.00 | $1,022.35 | $2.684 |
Class R6 Shares | $1,000.00 | $1,022.55 | $2.485 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 0.78% |
Class C Shares | 1.53% |
Institutional Shares | 0.53% |
Class R6 Shares | 0.49% |
2 | Actual and Hypothetical expenses paid during the period utilizing the Fund’s Class A Shares current Fee Limit of 1.19% (as reflected in the Notes to Financial Statements, Note 5 under Expense Limitation), multiplied by the average account value over the period, multiplied by 183/366 (to reflect expenses paid as if they had been in effect throughout the most recent one-half-year period) would be $6.07 and $6.01, respectively. |
3 | Actual and Hypothetical expenses paid during the period utilizing the Fund’s Class C Shares current Fee Limit of 1.94% (as reflected in the Notes to Financial Statements, Note 5 under Expense Limitation), multiplied by the average account value over the period, multiplied by 183/366 (to reflect expenses paid as if they had been in effect throughout the most recent one-half-year period) would be $9.87 and $9.78, respectively. |
4 | Actual and Hypothetical expenses paid during the period utilizing the Fund’s Institutional Shares current Fee Limit of 0.94% (as reflected in the Notes to Financial Statements, Note 5 under Expense Limitation), multiplied by the average account value over the period, multiplied by 183/366 (to reflect expenses paid as if they had been in effect throughout the most recent one-half-year period) would be $4.79 and $4.75, respectively. |
5 | Actual and Hypothetical expenses paid during the period utilizing the Fund’s Class R6 Shares current Fee Limit of 0.90% (as reflected in the Notes to Financial Statements, Note 5under Expense Limitation), multiplied by the average account value over the period, multiplied by 183/366 (to reflect expenses paid as if they had been in effect throughout the most recent one-half-year period) would be $4.59 and $4.55, respectively. |
Annual Evaluation of Adequacy and Effectiveness
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31423A697
CUSIP 31423A689
CUSIP 31423A671
Share Class | Ticker | Institutional | PIGDX | R6 | REIGX |
Federated Hermes International Growth Fund
A Portfolio of Federated Hermes Adviser Series
Country | Percentage of Total Net Assets |
Japan | 17.3% |
United Kingdom | 7.7% |
China | 7.0% |
Netherlands | 5.2% |
Canada | 4.8% |
France | 4.8% |
Switzerland | 4.5% |
Italy | 4.5% |
Brazil | 4.4% |
Germany | 4.3% |
India | 3.6% |
Denmark | 3.4% |
South Korea | 3.2% |
Taiwan | 3.0% |
Israel | 2.5% |
Argentina | 2.4% |
Ireland | 2.3% |
Australia | 2.1% |
South Africa | 1.7% |
Norway | 1.6% |
Spain | 1.4% |
Poland | 1.0% |
Other2 | 5.0% |
Cash Equivalents3 | 2.2% |
Other Assets and Liabilities—Net4 | 0.1% |
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 | For purposes of this table, country classifications constitute 92.7% of the Fund’s investments. Remaining countries which constitute less than 1.0% of the Fund’s total net assets have been aggregated under the designation “Other.” |
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. |
Sector Composition | Percentage of Total Net Assets |
Information Technology | 21.4% |
Health Care | 15.1% |
Consumer Discretionary | 14.7% |
Consumer Staples | 10.6% |
Financials | 10.4% |
Industrials | 9.5% |
Energy | 5.8% |
Communication Services | 4.8% |
Materials | 4.4% |
Real Estate | 1.0% |
Cash Equivalents2 | 2.2% |
Other Assets and Liabilities—Net3 | 0.1% |
TOTAL | 100% |
1 | Except for Cash Equivalents and Other Assets and Liabilities, sector classifications are based upon, and individual securities 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 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. |
3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS— 97.7% | |||
Argentina— 2.4% | |||
10,362 | 1 | Mercadolibre, Inc. | $ 16,791,207 |
Australia— 2.1% | |||
285,749 | IDP Education Ltd. | 4,285,592 | |
410,196 | Northern Star Resources Ltd. | 3,476,521 | |
147,997 | Wisetech Global Ltd. | 6,485,196 | |
TOTAL | 14,247,309 | ||
Brazil— 4.4% | |||
1,644,006 | 1 | 3R Petroleum Oleo e Gas SA | 10,013,572 |
594,381 | Localiza Rent A Car SA | 7,250,360 | |
1,646,680 | 1 | NU Holdings Ltd./Cayman Islands | 13,403,975 |
TOTAL | 30,667,907 | ||
Canada— 4.8% | |||
275,664 | Cameco Corp. | 12,658,491 | |
28,108 | 1 | Lululemon Athletica, Inc. | 12,558,654 |
113,289 | 1 | Shopify, Inc. | 8,249,705 |
TOTAL | 33,466,850 | ||
China— 7.0% | |||
664,381 | 1 | Alibaba Group Holding Ltd. | 6,195,116 |
642,814 | 1 | Full Truck Alliance Co. Ltd., ADR | 4,814,677 |
716,200 | KE Holdings, Inc. | 3,778,810 | |
403,774 | 1 | Meituan | 4,654,699 |
1,259,380 | Nari Technology Development Co., Ltd. | 3,889,975 | |
416,544 | Tencent Holdings Ltd. | 17,320,521 | |
586,957 | 1 | Wuxi Biologics (Cayman), Inc. | 3,283,355 |
1,260 | 1 | WuXi XDC Cayman, Inc. | 4,613 |
2,818,000 | Zijin Mining Group Co. Ltd. | 4,473,115 | |
TOTAL | 48,414,881 | ||
Denmark— 3.4% | |||
234,731 | Novo Nordisk A/S, ADR | 23,905,005 | |
France— 4.8% | |||
129,723 | Dassault Systemes SA | 6,085,991 | |
56,976 | Gaztransport Et Technigaz | 7,668,676 | |
27,373 | L’Oreal SA | 12,875,708 | |
8,951 | LVMH Moet Hennessy Louis Vuitton SA | 6,642,879 | |
TOTAL | 33,273,254 | ||
Georgia— 0.3% | |||
68,947 | TBC Bank Group PLC | 2,421,361 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS— continued | |||
Germany— 4.3% | |||
197,334 | Infineon Technologies AG | $ 7,639,981 | |
17,367 | MTU Aero Engines AG | 3,550,695 | |
7,932 | Rational AG | 5,080,667 | |
83,386 | SAP SE, ADR | 13,268,380 | |
TOTAL | 29,539,723 | ||
Hong Kong— 0.9% | |||
755,237 | AIA Group Ltd. | 6,476,459 | |
India— 3.6% | |||
475,237 | DLF Ltd. | 3,568,323 | |
952,408 | 1 | PB Fintech Ltd. | 9,517,388 |
885,365 | Varun Beverages Ltd. | 11,736,350 | |
TOTAL | 24,822,061 | ||
Indonesia— 0.7% | |||
8,745,400 | PT Bank Central Asia | 5,066,722 | |
Ireland— 2.3% | |||
35,857 | 1 | ICON PLC | 9,571,667 |
84,723 | Kingspan Group PLC | 6,724,900 | |
TOTAL | 16,296,567 | ||
Israel— 2.5% | |||
54,203 | 1 | Camtek Ltd. | 3,440,807 |
69,216 | 1 | CyberArk Software Ltd. | 13,792,672 |
TOTAL | 17,233,479 | ||
Italy— 4.5% | |||
747,864 | Davide Campari-Milano NV | 8,172,279 | |
22,427 | Ferrari NV | 8,077,664 | |
576,223 | Infrastrutture Wireless Italiane SpA | 7,119,691 | |
228,038 | Tenaris S.A., ADR | 7,906,078 | |
TOTAL | 31,275,712 | ||
Japan— 17.3% | |||
254,300 | Ajinomoto Co., Inc. | 9,452,267 | |
451,800 | Daiichi Sankyo Co. Ltd. | 12,241,251 | |
748,800 | Denso Corp. | 11,718,356 | |
36,100 | Disco Corp. | 7,732,206 | |
83,741 | Hoya Corp. | 9,445,137 | |
259,300 | Internet Initiative Japan, Inc. | 4,656,382 | |
30,717 | Keyence Corp. | 13,066,014 | |
40,812 | Lasertec Corp. | 9,028,368 | |
460,719 | Mitsubishi UFJ Financial Group, Inc., ADR | 3,957,576 | |
797,300 | 1 | Renesas Electronics Corp. | 14,066,307 |
2,588,300 | Resona Holdings, Inc. | 13,430,628 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS— continued | |||
Japan— continued | |||
22,172 | SMC Corp. | $ 11,169,528 | |
TOTAL | 119,964,020 | ||
Netherlands— 5.2% | |||
24,826 | 1 | Argenx SE, ADR | 11,186,844 |
26,429 | ASML Holding N.V., ADR | 18,071,093 | |
74,812 | Heineken NV | 6,839,931 | |
TOTAL | 36,097,868 | ||
Nigeria— 0.6% | |||
2,966,225 | Airtel Africa PLC | 4,102,844 | |
Norway— 1.6% | |||
194,652 | Kongsberg Gruppen ASA | 8,353,534 | |
241,676 | TGS Nopec Geophysical Co. ASA | 3,056,601 | |
TOTAL | 11,410,135 | ||
Peru— 0.5% | |||
48,019 | Southern Copper Corp. | 3,454,007 | |
Poland— 1.0% | |||
59,762 | 1 | Dino Polska SA | 6,668,665 |
Saudi Arabia— 0.5% | |||
4,084,343 | Americana Restaurants International PLC | 3,701,279 | |
South Africa— 1.7% | |||
756,625 | Gold Fields Ltd. | 11,526,024 | |
South Korea— 3.2% | |||
241,543 | 1 | Coupang LLC | 3,690,777 |
334,002 | KakaoBank Corp. | 6,796,133 | |
150,382 | Korea Aerospace Industry | 5,408,164 | |
16,729 | Samsung SDI Co. Ltd. | 6,135,379 | |
TOTAL | 22,030,453 | ||
Spain— 1.4% | |||
236,085 | Industria de Diseno Textil SA | 9,743,634 | |
Sweden— 0.8% | |||
223,175 | 1 | Xvivo Perfusion AB | 5,701,387 |
Switzerland— 4.5% | |||
143,561 | Alcon, Inc. | 10,857,518 | |
109,893 | Nestle S.A. | 12,509,196 | |
29,490 | Sika AG | 7,998,352 | |
TOTAL | 31,365,066 | ||
Taiwan— 3.0% | |||
50,000 | eMemory Technology, Inc. | 4,004,445 | |
163,000 | MediaTek, Inc. | 4,936,220 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS— continued | |||
Taiwan— continued | |||
646,000 | Taiwan Semiconductor Manufacturing Co. Ltd | $ 11,883,991 | |
TOTAL | 20,824,656 | ||
Turkey— 0.7% | |||
361,508 | Coca-Cola Icecek Uretim AS | 5,065,810 | |
United Kingdom— 7.7% | |||
145,940 | Ashtead Group PLC | 8,787,973 | |
288,276 | AstraZeneca PLC, ADR | 18,619,747 | |
860,619 | Burford Capital Ltd. | 11,953,998 | |
549,623 | Compass Group PLC | 13,907,124 | |
TOTAL | 53,268,842 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $537,989,829) | 678,823,187 | ||
INVESTMENT COMPANY— 2.2% | |||
15,514,310 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 5.45%2 (IDENTIFIED COST $15,515,931) | 15,518,964 | |
TOTAL INVESTMENT IN SECURITIES—99.9% (IDENTIFIED COST $553,505,760)3 | 694,342,151 | ||
OTHER ASSETS AND LIABILITIES - NET—0.1%4 | 889,264 | ||
TOTAL NET ASSETS—100% | $695,231,415 |
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | Total of Affiliated Transactions | |
Value as of 5/31/2023 | $3,181,038 | $23,078,359 | $26,259,397 |
Purchases at Cost | $20,116,264 | $94,041,849 | $114,158,113 |
Proceeds from Sales | $(23,297,302) | $(101,605,351) | $(124,902,653) |
Change in Unrealized Appreciation/ Depreciation | $— | $2,232 | $2,232 |
Net Realized Gain/(Loss) | $— | $1,875 | $1,875 |
Value as of 11/30/2023 | $— | $15,518,964 | $15,518,964 |
Shares Held as of 11/30/2023 | — | 15,514,310 | 15,514,310 |
Dividend Income | $33,632 | $316,441 | $350,073 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions. |
1 | Non-income-producing security. |
2 | 7-day net yield. |
3 | Also represents cost of investments for federal tax purposes. |
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 | ||||
International | $239,421,423 | $439,401,764 | $— | $678,823,187 |
Investment Company | 15,518,964 | — | — | 15,518,964 |
TOTAL SECURITIES | $254,940,387 | $439,401,764 | $— | $694,342,151 |
The following acronym(s) are used throughout this portfolio: | ||
ADR | —American Depositary Receipt |
(formerly, Class I Shares)
Six Months Ended (unaudited) 11/30/2023 | Year Ended May 31, | |||||
2023 | 2022 | 2021 | 20202 | 2019 | ||
Net Asset Value, Beginning of Period | $13.19 | $14.26 | $18.70 | $13.02 | $11.87 | $14.79 |
Income From Investment Operations: | ||||||
Net investment income3 | 0.02 | 0.13 | 0.08 | 0.09 | 0.03 | 0.08 |
Net realized and unrealized gain (loss) | (0.02) | (0.94) | (3.80) | 6.39 | 1.73 | (1.28) |
TOTAL FROM INVESTMENT OPERATIONS | — | (0.81) | (3.72) | 6.48 | 1.76 | (1.20) |
Less Distributions: | ||||||
Distributions from net investment income | — | (0.15) | (0.05) | (0.01) | (0.08) | (0.06) |
Distributions from net realized gain | — | (0.11) | (0.67) | (0.79) | (0.53) | (1.67) |
TOTAL DISTRIBUTIONS | — | (0.26) | (0.72) | (0.80) | (0.61) | (1.73) |
Payment by Affiliate4 | — | — | — | — | — | 0.01 |
Net Asset Value, End of Period | $13.19 | $13.19 | $14.26 | $18.70 | $13.02 | $11.87 |
Total Return5 | 0.00%6 | (5.64)% | (20.70)% | 50.28% | 14.78% | (6.61)%4 |
Ratios to Average Net Assets: | ||||||
Net expenses7 | 0.84%8 | 0.84% | 0.84% | 0.84% | 0.85% | 0.85% |
Net investment income | 0.37%8 | 1.00% | 0.47% | 0.51% | 0.21% | 0.58% |
Expense waiver/reimbursement9 | 0.08%8 | 0.07% | 0.09% | 0.36% | 5.10% | 2.54% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $694,593 | $714,886 | $749,120 | $835,694 | $5,094 | $5,412 |
Portfolio turnover10 | 23% | 46% | 47% | 89% | 70% | 54% |
1 | PNC International Growth Fund (the “Predecessor Fund”) was reorganized into the Fund as of the close of business on November 15, 2019. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund’s operations. |
2 | Beginning with the year ended May 31, 2020, the Fund was audited by KPMG LLP. The previous years were audited by another independent registered public accounting firm. |
3 | Per share numbers have been calculated using the average shares method. |
4 | During the period ended May 31, 2019, a payment was made by PNC Capital Advisors, LLC (the former Adviser) to offset a trade error in the Predecessor Fund. Excluding this item, the total return would have been (6.76)%. |
5 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
6 | Represents less than 0.01%. |
7 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
8 | Computed on an annualized basis. |
9 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
10 | Securities that mature are considered sales for purposes of this calculation. |
Six Months Ended (unaudited) 11/30/2023 | Year Ended 5/31/2023 | Period Ended 5/31/20221 | |
Net Asset Value, Beginning of Period | $13.20 | $14.26 | $20.05 |
Income From Investment Operations: | |||
Net investment income2 | 0.02 | 0.12 | 0.12 |
Net realized and unrealized gain (loss) | (0.02) | (0.92) | (5.19) |
TOTAL FROM INVESTMENT OPERATIONS | — | (0.80) | (5.07) |
Less Distributions: | |||
Distributions from net investment income | — | (0.15) | (0.05) |
Distributions from net realized gain | — | (0.11) | (0.67) |
TOTAL DISTRIBUTIONS | — | (0.26) | (0.72) |
Net Asset Value, End of Period | $13.20 | $13.20 | $14.26 |
Total Return3 | 0.00%4 | (5.57)% | (26.04)% |
Ratios to Average Net Assets: | |||
Net expenses5 | 0.83%6 | 0.83% | 0.83%6 |
Net investment income | 0.37%6 | 0.95% | 0.92%6 |
Expense waiver/reimbursement7 | 0.08%6 | 0.06% | 0.12%6 |
Supplemental Data: | |||
Net assets, end of period (000 omitted) | $639 | $619 | $279 |
Portfolio turnover8 | 23% | 46% | 47%9 |
1 | Reflects operations for the period from August 26, 2021 (commencement of operations) to May 31, 2022. |
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 | Represents less than 0.01%. |
5 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
6 | Computed on an annualized basis. |
7 | This expense decrease is reflected in both the net expense and 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 year ended May 31, 2022. |
Assets: | |
Investment in securities, at value including $15,518,964 of investment in an affiliated holding* (identified cost $553,505,760, including $15,515,931 of identified cost in an affiliated holding) | $694,342,151 |
Cash | 111,033 |
Cash denominated in foreign currencies (identified cost $56,220) | 56,425 |
Income receivable | 1,450,474 |
Receivable for investments sold | 1,080,628 |
Due from custodian | 54,490 |
Receivable for shares sold | 9,225 |
Income receivable from an affiliated holding | 478 |
Total Assets | 697,104,904 |
Liabilities: | |
Payable for capital gains taxes withheld | $804,848 |
Payable for investments purchased | 718,918 |
Payable for custodian fees | 158,350 |
Payable for portfolio accounting fees | 98,060 |
Payable for shares redeemed | 41,728 |
Payable for investment adviser fee (Note 5) | 12,573 |
Payable for administrative fee (Note 5) | 1,745 |
Accrued expenses (Note 5) | 37,267 |
TOTAL LIABILITIES | 1,873,489 |
Net assets for 52,689,196 shares outstanding | $695,231,415 |
Net Assets Consist of: | |
Paid-in capital | $597,573,990 |
Total distributable earnings (loss) | 97,657,425 |
TOTAL NET ASSETS | $695,231,415 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Institutional Shares: | |
Net asset value per share ($694,592,633 ÷ 52,640,815 shares outstanding) no par value, unlimited shares authorized | $13.19 |
Class R6 Shares: | |
Net asset value per share ($638,782 ÷ 48,381 shares outstanding) no par value, unlimited shares authorized | $13.20 |
* | See information listed after the Fund’s Portfolio of Investments. |
Investment Income: | |
Dividends (including $316,441 received from an affiliated holding* and net of foreign taxes withheld of $235,205) | $4,235,565 |
Net income on securities loaned (includes $33,632 earned from an affiliated holding* related to cash collateral balances) (Note 2) | 1,804 |
TOTAL INCOME | 4,237,369 |
Expenses: | |
Investment adviser fee (Note 5) | $2,632,765 |
Administrative fee (Note 5) | 273,970 |
Custodian fees | 130,967 |
Transfer agent fees (Note 2) | 41,180 |
Directors’/Trustees’ fees (Note 5) | 2,072 |
Auditing fees | 17,901 |
Legal fees | 5,660 |
Portfolio accounting fees | 74,171 |
Share registration costs | 19,816 |
Printing and postage | 10,496 |
Miscellaneous (Note 5) | 34,935 |
TOTAL EXPENSES | 3,243,933 |
Waiver/reimbursement of investment adviser fee (Note 5) | (296,976) |
Net expenses | 2,946,957 |
Net investment income | 1,290,412 |
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: | |
Net realized loss on investments (including net realized gain of $1,875 on sales of investments in an affiliated holding*) and foreign currency transactions | (17,841,691) |
Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency (including net change in unrealized appreciation of $2,232 of investments in an affiliated holding* and increase in payable for capital gains taxes withheld of $582,089) | 16,188,990 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | (1,652,701) |
Change in net assets resulting from operations | $(362,289) |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 11/30/2023 | Year Ended 5/31/2023 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $1,290,412 | $7,031,692 |
Net realized loss | (17,841,691) | (28,477,495) |
Net change in unrealized appreciation/depreciation | 16,188,990 | (18,981,413) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | (362,289) | (40,427,216) |
Distributions to Shareholders: | ||
Institutional Shares | — | (13,704,213) |
Class R6 Shares | — | (15,874) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | — | (13,720,087) |
Share Transactions: | ||
Proceeds from sale of shares | 19,104,442 | 64,721,374 |
Net asset value of shares issued to shareholders in payment of distributions declared | — | 13,471,219 |
Cost of shares redeemed | (39,015,234) | (57,939,349) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (19,910,792) | 20,253,244 |
Change in net assets | (20,273,081) | (33,894,059) |
Net Assets: | ||
Beginning of period | 715,504,496 | 749,398,555 |
End of period | $695,231,415 | $715,504,496 |
Transfer Agent Fees Incurred | |
Institutional Shares | $41,158 |
Class R6 Shares | 22 |
TOTAL | $41,180 |
Six Months Ended 11/30/2023 | Year Ended 5/31/2023 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,435,654 | $19,077,201 | 4,955,233 | $64,185,039 |
Shares issued to shareholders in payment of distributions declared | — | — | 1,058,243 | 13,460,856 |
Shares redeemed | (2,997,851) | (39,006,106) | (4,356,936) | (57,723,294) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (1,562,197) | $(19,928,905) | 1,656,540 | $19,922,601 |
Six Months Ended 11/30/2023 | Year Ended 5/31/2023 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 2,216 | $27,241 | 43,574 | $536,335 |
Shares issued to shareholders in payment of distributions declared | — | — | 815 | 10,363 |
Shares redeemed | (738) | (9,128) | (17,027) | (216,055) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | 1,478 | $18,113 | 27,362 | $330,643 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (1,560,719) | $(19,910,792) | 1,683,902 | $20,253,244 |
Short-Term | Long-Term | Total |
$28,019,746 | $— | $28,019,746 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Purchases | $154,596,984 |
Sales | $165,048,925 |
Beginning Account Value 6/1/2023 | Ending Account Value 11/30/2023 | Expenses Paid During Period1 | |
Actual: | |||
Institutional Shares | $1,000.00 | $1,000.80 | $4.20 |
Class R6 Shares | $1,000.00 | $1,000.00 | $4.15 |
Hypothetical (assuming a 5% return before expenses): | |||
Institutional Shares | $1,000.00 | $1,020.80 | $4.24 |
Class R6 Shares | $1,000.00 | $1,020.85 | $4.19 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). |
Institutional Shares | 0.84% |
Class R6 Shares | 0.83% |
Annual Evaluation of Adequacy and Effectiveness
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31423A630
Item 2. | Code of Ethics |
Not Applicable
Item 3. | Audit Committee Financial Expert |
Not Applicable
Item 4. | Principal Accountant Fees and Services |
Not Applicable
Item 5. | Audit Committee of Listed Registrants |
Not Applicable
Item 6. | Schedule of Investments |
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
Item 8. | Portfolio Managers of Closed-End Management Investment Companies |
Not Applicable
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
Not Applicable
Item 10. | Submission of Matters to a Vote of Security Holders |
No Changes to Report
Item 11. | Controls and Procedures |
(a) The registrant’s President and Treasurer have concluded that the
registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the 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 January 23, 2024
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 January 23, 2024
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date January 23, 2024