File No. __________
As filed with the SEC on November 17, 2023
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-14
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. __
Post-Effective Amendment No. __
(Check appropriate box or boxes)
FEDERATED HERMES GOVERNMENT INCOME TRUST
(Exact Name of Registrant as Specified in Charter)
1-800-341-7400
(Area Code and Telephone Number)
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
Peter J. Germain, Esquire
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
Copies to:
Thomas Early, Esquire
Goodwin Procter LLP
601 S. Figueroa St.
41st Floor
Los Angeles, CA 90017
Approximate Date of Proposed Public Offering: As soon as
practicable after this Registration Statement becomes effective
under the Securities Act of 1933, as amended.
Title of Securities Being Registered:
Institutional Shares and Service Shares
without par value, of
Federated Hermes Government Income Fund
It is proposed that this filing will become effective
On December 18, 2023 pursuant to Rule 488 under the Securities Act of 1933, as amended.
No filing fee is due because Registrant is relying on Section 24(f) of the Investment Company Act of 1940, as amended.
![](https://capedge.com/proxy/N-14/0001623632-23-001457/img5e4a71591.gif)
Reorganizing Fund | Surviving Fund |
Federated Hermes Government Income Securities, Inc. | Federated Hermes Government Income Fund |
Class A Shares | Service Shares |
Class C Shares | Service Shares |
Class F Shares | Service Shares |
Institutional Shares | Institutional Shares |
PRE-REORGANIZATION | |||
ReorganizingFund | Surviving Fund | ||
Federated Hermes Government Income Securities, Inc. | Pre-Reorganization Total Annual Operating Expenses Gross/Net | Federated Hermes Government Income Fund | Pre-Reorganization Total Annual Operating Expenses Gross/Net |
Class A Shares | 1.41%/1.01% | Service Shares | 1.07%/0.84% |
Class C Shares | 2.16%/1.76% | ||
Class F Shares | 1.41%/1.01% | ||
Institutional Shares | 1.16%/0.76% | Institutional Shares | 1.07%/0.64% |
POST-REORGANIZATION | |
Surviving Fund | |
Federated Hermes Government Income Fund | Post-Reorganization Total Annual Operating Expenses Gross/Net |
Service Shares | 1.00%/0.84% |
Institutional Shares | 1.00%/0.64% |
Class C Shares
Class F Shares
Institutional Shares
4000 Ericsson Drive
Warrendale, PA 15086-7561
Telephone No: 1-800-341-7400
Institutional Shares
4000 Ericsson Drive
Warrendale, PA 15086-7561
Telephone No: 1-800-341-7400
Reorganizing Fund | Surviving Fund |
Federated Hermes Government Income Securities, Inc. | Federated Hermes Government Income Fund |
Class A Shares, Class C Shares, Class F Shares | Service Shares |
Institutional Shares | Institutional Shares |
Fees and Expenses
Shareholder Fees | GISI–A | FHGIF–SS1 | FHGIF-SS Pro Forma Combined |
Fees Paid Directly From Your Investment | |||
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 4.50% | None | None |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | 0.00% | None | None |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | None | None | None |
Redemption Fee (as a percentage of amount redeemed, if applicable) | None | None | None |
Exchange Fee | None | None | None |
Annual Fund Operating Expenses | |||
Expenses That You Pay Each Year as a Percentage of the Value of Your Investment | |||
Management Fee | 0.55% | 0.40% | 0.40% |
Distribution (12b-1) Fee | 0.00%1 | 0.00%1 | 0.00%1 |
Other Expenses: | 0.86% | 0.67% | 0.60% |
Total Annual Fund Operating Expenses | 1.41% | 1.07% | 1.00% |
Fee Waivers and/or Expense Reimbursements | (0.40%)2 | (0.23%)3 | (0.16 %)3 |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 1.01% | 0.84% | 0.84% |
1 Year | 3 Years | 5 Years | 10 Years | |
GISI–Class A Shares | $587 | $876 | $1,186 | $2,065 |
FHGIF–Service Shares | $109 | $340 | $590 | $1,306 |
FHGIF–Service Shares, Pro Forma Combined | $102 | $318 | $552 | $1,225 |
Fees and Expenses
Shareholder Fees | GISI–C | FHGIF–SS1 | FHGIF-SS Pro Forma Combined |
Fees Paid Directly From Your Investment | |||
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None | None | None |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | 1.00% | None | None |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | None | None | None |
Redemption Fee (as a percentage of amount redeemed, if applicable) | None | None | None |
Exchange Fee | None | None | None |
Annual Fund Operating Expenses | |||
Expenses That You Pay Each Year as a Percentage of the Value of Your Investment | |||
Management Fee | 0.55% | 0.40% | 0.40% |
Distribution (12b-1) Fee | 0.75% | 0.00%1 | 0.00%1 |
Other Expenses: | 0.86% | 0.67% | 0.60% |
Total Annual Fund Operating Expenses | 2.16% | 1.07% | 1.00% |
Fee Waivers and/or Expense Reimbursements | (0.40%)2 | (0.23%)3 | (0.16 %)3 |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 1.76% | 0.84% | 0.84% |
1 Year | 3 Years | 5 Years | 10 Years | |
GISI–Class C Shares, assuming redemption | $319 | $676 | $638 | $1,409 |
GISI–Class C Shares, assuming no redemption | $219 | $676 | $638 | $1,409 |
FHGIF–Service Shares | $109 | $340 | $590 | $1,306 |
FHGIF–Service Shares, Pro Forma Combined | $102 | $318 | $552 | $1,225 |
Fees and Expenses
Shareholder Fees | GISI–F | FHGIF–SS1 | FHGIF-SS Pro Forma Combined |
Fees Paid Directly From Your Investment | |||
Maximum Sales Charge (Load) | 2.00% | None | None |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 1.00% | None | None |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | 1.00% | None | None |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | None | None | None |
Redemption Fee (as a percentage of amount redeemed, if applicable) | None | None | None |
Exchange Fee | None | None | None |
Annual Fund Operating Expenses | |||
Expenses That You Pay Each Year as a Percentage of the Value of Your Investment | |||
Management Fee | 0.55% | 0.40% | 0.40% |
Distribution (12b-1) Fee | None | 0.00%1 | 0.00%1 |
Other Expenses: | 0.86% | 0.67% | 0.60% |
Total Annual Fund Operating Expenses | 1.41% | 1.07% | 1.00% |
Fee Waivers and/or Expense Reimbursements | (0.40%)2 | (0.23%)3 | (0.16 %)3 |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 1.01% | 0.84% | 0.84% |
1 Year | 3 Years | 5 Years | 10 Years | |
GISI–Class F Shares, assuming redemption | $342 | $642 | $863 | $1,774 |
GISI–Class F Shares, assuming no redemption | $242 | $542 | $863 | $1,774 |
FHGIF–Service Shares | $109 | $340 | $590 | $1,306 |
FHGIF–Service Shares, Pro Forma Combined | $102 | $318 | $552 | $1,225 |
Fees and Expenses
Shareholder Fees | GISI–IS | FHGIF–IS1 | FHGIF-IS Pro Forma Combined |
Fees Paid Directly From Your Investment | |||
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None | None | None |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | None | None | None |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | None | None | None |
Redemption Fee (as a percentage of amount redeemed, if applicable) | None | None | None |
Exchange Fee | None | None | None |
Annual Fund Operating Expenses | |||
Expenses That You Pay Each Year as a Percentage of the Value of Your Investment | |||
Management Fee | 0.55% | 0.40% | 0.40% |
Distribution (12b-1) Fee | None | None | None |
Other Expenses: | 0.61% | 0.67% | 0.60% |
Total Annual Fund Operating Expenses | 1.16% | 1.07% | 1.00% |
Fee Waivers and/or Expense Reimbursements | (0.40%)1 | (0.43%)2 | (0.36 %)2 |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 0.76% | 0.64% | 0.64% |
1 Year | 3 Years | 5 Years | 10 Years | |
GISI–Institutional Shares | $118 | $368 | $638 | $1,409 |
FHGIF–Institutional Shares | $109 | $340 | $590 | $1,306 |
FHGIF–Institutional Shares, Pro Forma Combined | $102 | $318 | $552 | $1,225 |
1 Year | 5 Year | 10 Year | |
Federated Hermes Government Income Securities, Inc. | (1.43)% | (1.09)% | 0.03% |
Federated Hermes Government Income Fund | (1.85)% | (1.15)% | 0.14% |
![](https://capedge.com/proxy/N-14/0001623632-23-001457/gisiisbarchartforn14.jpg)
Share Class | 1 Year | 5 Years | 10 Years |
A: | |||
Return Before Taxes | (16.81)% | (1.92)% | (0.43)% |
C: | |||
Return Before Taxes | (14.37)% | (1.77)% | (0.58)% |
F: | |||
Return Before Taxes | (14.61)% | (1.21)% | (0.06)% |
Return After Taxes on Distributions | (15.26% | (1.97)% | (0.93)% |
Return After Taxes on Distributions and Sale of Fund Shares | (8.63)% | (1.20)% | (0.40)% |
IS: | |||
Return Before Taxes | (12.78)% | (0.91)% | 0.08% |
ICE BofA Current 5-Year US Treasury Index1 (reflects no deduction for fees, expenses or taxes) | (9.77)% | 0.20% | 0.42% |
Blended Index2 (reflects no deduction for fees, expenses or taxes) | (12.00)% | (0.34)% | 0.69% |
Lipper General U.S. Government Funds Average3 | (12.94)% | (0.63)% | 0.16% |
![](https://capedge.com/proxy/N-14/0001623632-23-001457/fhgifpro43497isn14.jpg)
Share Class | 1 Year | 5 Years | 10 Years |
IS: | |||
Return Before Taxes | (11.46)% | (0.66)% | 0.39% |
Return After Taxes on Distributions | (12.14)% | (1.36)% | (0.49)% |
Return After Taxes on Distributions and Sale of Fund Shares1 | (6.77)% | (0.77)% | (0.07)% |
SS: | |||
Return Before Taxes | (11.74)% | (0.88)% | 0.18% |
Bloomberg US Mortgage Backed Securities Index1 (reflects no deduction for fees, expenses or taxes) | (11.81)% | (0.53)% | 0.74% |
Lipper U.S. Mortgage Funds Average2 (reflects no deduction for fees, expenses or taxes) | (11.10)% | (0.56)% | 0.60% |
INVESTMENT OBJECTIVES AND STRATEGIES | |
Reorganizing Fund | Surviving Fund |
Investment Objective: The Fund’s investment objective is to provide current income. Principal Investment Strategies: The Fund seeks to provide current income by investing primarily in fixed-income securities issued or guaranteed by the U.S. government and its agencies and instrumen- talities. Under normal market conditions, the Fund invests primarily in mortgage-backed securities (MBS) of investment-grade quality, including collateralized mortgage obligations (CMOs) and commercial mortgage backed securities (CMBS), and seeks to provide returns consistent with investments in the market for U.S. home mortgages. The Fund will invest in MBS that are issued or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises (GSEs). The Fund may invest in non-agency MBS, which are those not issued or guaranteed by GSEs. The Fund also may invest in U.S. government securities and certain derivative instruments and engage in short sales of U.S. Treasury securities and futures contracts. The Fund typically seeks to maintain an overall average dollar-weighted portfolio duration that is within one year above or below the duration of the blended index comprised of the Bloomberg US Government Bond Index, an index composed of U.S. government and government agency securities with maturities of one year or more, and the Bloomberg US Mortgage Backed Securities Index, an index composed of MBS issued or guaranteed by U.S. government agencies or instrumentalities (the “Blended Index”). At times, the investment adviser’s (the “Adviser”) calculation of portfolio duration may result in variances outside this range. Duration is a measure of the price volatility of a fixed-income security as a result of changes in market rates of interest, based on the weighted average timing of the instrument’s expected fixed interest and principal payments. The Adviser seeks to create a portfolio, consisting of MBS, derivative instruments and other securities that outperforms the Blended Index. Based on fundamental analysis, the Adviser will consider a variety of factors when making decisions to purchase or sell particular securities or derivative contracts. The Fund may, but is not required to, use derivative instruments, which are instruments that have a value based on another instrument, exchange rate or index, and may be used as substitutes for securities in which the Fund can invest, or to hedge against a potential loss in the underlying asset. There can be no assurance that the Fund’s use of derivative instruments will work as intended. Derivative investments made by the Fund are included within the Fund’s 80% policy (as described below) and are calculated at market value. | Investment Objective: The Fund’s investment objective is to provide current income. Principal Investment Strategies: The Fund seeks current income. Under normal market conditions, the Fund invests primarily in mortgage-backed securities (MBS) of investment-grade quality and seeks to provide returns consistent with investments in the market for U.S. home mortgages. The Fund will invest in MBS that are issued or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises (GSEs) including collateralized mortgage obligations (CMOs). The Fund also may invest in U.S. government securities and certain derivative instruments. The Fund typically seeks to maintain an overall average dollar-weighted portfolio duration that is within one year above or below the Bloomberg US Mortgage Backed Securities Index (the “Index”). At times, the Fund’s investment adviser’s (the “Adviser”) calculation of portfolio duration may result in variances outside this range. Duration is a measure of the price volatility of a fixed-income security as a result of changes in market rates of interest, based on the weighted average timing of the instrument’s expected fixed interest and principal payments. The Adviser seeks to create a portfolio, consisting of MBS, derivative instruments and other securities that outperforms the Index. Based on fundamental analysis, the Adviser will consider a wide variety of factors when making decisions to purchase or sell particular securities or derivative contracts. The Fund may but is not required to, use derivative instruments. Derivatives are instruments that have a value based on another instrument, exchange rate or index, and may be used as substitutes for securities in which the Fund can invest, or to hedge against a potential loss in the underlying asset. There can be no assurance that the Fund’s use of derivative instruments will work as intended. Derivative investments made by the Fund are included within the Fund’s 80% policy (as described below) and are calculated at market value. There can be no assurance that the Fund’s use of derivative instruments will work as intended. Derivative investments made by the Fund are included within the Fund’s 80% policy (as described below) and are calculated at market value. |
NON-FUNDAMENTAL INVESTMENT POLICY WITH RESPECT TO 80% OF NET ASSETS | |
Reorganizing Fund | Surviving Fund |
The Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in U.S. government investments. The Fund will notify shareholders at least 60 days in advance of any change in its investment policy that would enable the Fund to invest, under normal circumstances, less than 80% of its net assets (plus any borrowings for investment purposes) in U.S. government investments. | The Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in U.S. Government securities. The Fund will notify shareholders at least 60 days in advance of any change in its investment policy that would enable the Fund to invest, under normal circumstances, less than 80% of its net assets (plus any borrowings for investment purposes) in U.S. Government securities. |
PRINCIPAL RISKS | |
Reorganizing Fund | Surviving Fund |
MBS Risk. A rise in interest rates may cause the value of MBS held by the Fund to decline. Certain MBS issued by GSEs are not backed by the full faith and credit of the U.S. government. A non-agency MBS is subject to the risk that the value of such security will decline, because the security is not issued or guaranteed as to principal or interest by the U.S. government or a GSE. The Fund’s investments in collateralized mortgage obligations (CMOs) may entail greater market, prepayment and liquidity risks than other MBS. | MBS Risk. A rise in interest rates may cause the value of MBS held by the Fund to decline. The Fund’s investments in collateralized mortgage obligations (CMOs) may entail greater market, prepayment and liquidity risks than other MBS. |
Interest Rate Risk. Prices of fixed-income securities (including tax-exempt securities) generally fall when interest rates rise. The longer the duration of a fixed-income security, the more susceptible it is to interest rate risk. Recent and potential future changes in monetary policy made by central banks and/or their governments are likely to affect the level of interest rates. | Same. |
Credit Risk. It is possible that borrowers of non-agency MBS in which the Fund invests will fail to pay interest or principal on these securities when due, which would result in the Fund losing money. | Credit Risk. It is possible that interest or principal on securities will not be paid when due. Such non-payment or default may reduce the value of the Fund’s portfolio holdings, its share price and its performance. |
Counterparty Credit Risk. A party to a transaction involving the Fund may fail to meet its obligations. This could cause the Fund to lose money or to lose the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategies. | Same. |
Liquidity Risk. The non-agency MBS and CMOs in which the Fund invests may be less readily marketable and may be subject to greater fluctuation in price than other securities. | Liquidity Risk. The CMOs in which the Fund invests may be less readily marketable and may be subject to greater fluctuation in price than other securities |
Leverage Risk. Leverage risk is created when an investment, which includes, for example, a derivative contract, exposes the Fund to a level of risk that exceeds the amount invested. Changes in the value of such an investment magnify the Fund’s risk of loss and potential for gain | Same. |
Prepayment and Extension Risk. When homeowners prepay their mortgages in response to lower interest rates, the Fund will be required to reinvest the proceeds at the lower interest rates available. Also, when interest rates fall, the price of municipal mortgage-backed securities may not rise to as great an extent as that of other fixed-income securities. When interest rates rise, homeowners are less likely to prepay their mortgages. A decreased rate of prepayments lengthens the expected maturity of a mortgage-backed security, and the price of mortgage-backed securities may decrease more than the price of other fixed income securities when interest rates rise. | Same. |
Risk of Security Downgrades. The downgrade of the credit of a security held by the Fund may decrease its value. Fixed-income securities with lower ratings tend to have a higher probability that a borrower will default or fail to meet its payment obligations. | No corresponding risk factor. |
PRINCIPAL RISKS | |
Reorganizing Fund | Surviving Fund |
Short Sale Risk. The Fund may incur a loss as a result of a short sale if the price of the security increases between the date of the sale and the date on which the Fund repurchases the security. The risk is that the securities price moves in the opposite direction than expected causing the Fund to lose money. | No corresponding risk factor. |
No corresponding risk factor. | Risk of Investing in Certain MBS. MBS backed by participations in reverse mortgages may carry risks different from and in addition to risks of other MBS. The timing of payments made on reverse mortgage loans (and, by extension, MBS backed bysuch loans) is uncertain and may occur sooner or later than anticipated. |
Risk Related to the Economy. The value of the Fund’s portfolio may decline in tandem with a drop in the overall value of the markets in which the Fund invests and/or other markets. Economic, political and financial conditions, industry or economic trends and developments or public health risks, such as epidemics or pandemics, may, from time to time, and for varying periods of time, cause the Fund to experience volatility, illiquidity, shareholder redemptions or other potentially adverse effects. Among other investments, lower-grade bonds may be particularly sensitive to changes in the economy. | Risk Related to the Economy. The value of the Fund’s portfolio may decline in tandem with a drop in the overall value of the markets in which the Fund invests and/or other markets. Economic, political and financial conditions, industry or economic trends and developments or public health risks, such as epidemics or pandemics, may, from time to time, and for varying periods of time, cause the Fund to experience volatility, illiquidity, shareholder redemptions or other potentially adverse effects. |
Risk of Investing in Derivative Instruments. The Fund’s exposure to derivative contracts (either directly or through its investment in another investment company) involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. The use of derivatives can lead to losses because of adverse movements in the price or value of the asset, index, rate or instrument underlying a derivative, due to failure of a counterparty, or the failure of the counterparty to meet its obligations under the contract, or due to tax or regulatory constraints. Derivatives may create investment leverage in the Fund, which magnifies the Fund’s exposure to the underlying investment. Derivative instruments may be difficult to value, may be illiquid and may be subject to wide swings in valuation caused by changes in the value of the underlying instrument. Over-the-counter derivative contracts generally carry greater liquidity risk than exchange-traded contracts. The loss on derivative transactions may substantially exceed the initial investment | Risk of Investing in Derivative Instruments. Derivative contracts involve risks different from, or possibly greater than, risks associated with investing directly in securities and other traditional investments. Specific risk issues related to the use of such contracts include valuation and tax issues, increased potential for losses and/or costs to the Fund, and a potential reduction in gains to the Fund. Each of these issues is described in greater detail in this prospectus. Derivative contracts may also involve other risks described in this Prospectus such as interest rate, credit, liquidity and leverage risks. |
Technology Risk. The Adviser uses various technologies in managing the Fund, consistent with its investment objective(s) and strategy described in this Prospectus. For example, proprietary and third-party data and systems are utilized to support decision making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance. | Same. |
INVESTMENT LIMITATIONS AND POLICIES | |
Reorganizing Fund | Surviving Fund |
Diversification (fundamental) With respect to securities comprising 75% of the value of its total assets, the Fund will not purchase securities of any one issuer (other than cash; cash items; securities issued or guaranteed by the government of the United States or its agencies or instrumentalities and repurchase agreements collateralized by such U.S. government securities; and securities of other investment companies) if, as a result, more than 5% of the value of the Fund’s total assets would be invested in the securities of that issuer, or the Fund would own more than 10% of the outstanding voting securities of that issuer. | Diversification of Investments (fundamental) Same. |
Issuing Senior Securities and Borrowing Money (fundamental) The Fund may borrow money, directly or indirectly, and issue senior securities to the maximum extent permitted under the Investment Company Act of 1940, as amended (the “1940 Act”). | Borrowing Money and Issuing Senior Securities (fundamental) Same. |
Pledging Assets (non-fundamental) The Fund will not mortgage, pledge or hypothecate any of its assets, provided that this shall not apply to the transfer of securities in connection with any permissible borrowing or to collateral arrangements in connection with permissible activities. | Pledging Assets (non-fundamental) Same. |
Underwriting (fundamental) The Fund may not underwrite the securities of other issuers, except that the Fund may engage in transactions involving the acquisition, disposition or resale of its portfolio securities, under circumstances where it may be considered to be an underwriter under the Securities Act of 1933. | Underwriting (fundamental) Same. |
Investing in Real Estate (fundamental) The Fund may not purchase or sell real estate, provided that this restriction does not prevent the Fund from investing in issuers which invest, deal or otherwise engage in transactions in real estate or interests therein, or investing in securities that are secured by real estate or interests therein. The Fund may exercise its rights under agreements relating to such securities, including the right to enforce security interests and to hold real estate acquired by reason of such enforcement until that real estate can be liquidated in an orderly manner. | Investing in Real Estate (fundamental) Same. |
Investing in Commodities (fundamental) The Fund may not purchase or sell physical commodities, provided that the Fund may purchase securities of companies that deal in commodities. | Investing in Commodities (fundamental) Same. |
Lending Cash or Securities (fundamental) The Fund may not make loans, provided that this restriction does not prevent the Fund from purchasing debt obligations, entering into repurchase agreements, lending its assets to broker/dealers or institutional investors and investing in loans, including assignments and participation interests. | Lending (fundamental) Same. |
INVESTMENT LIMITATIONS AND POLICIES | |
Reorganizing Fund | Surviving Fund |
Concentration (fundamental) The Fund will not make investments that will result in the concentration of its investments in the securities of issuers primarily engaged in the same industry. Government securities, municipal securities and bank instruments will not be deemed to constitute an industry. | Concentration of Investments (fundamental) Same. |
No corresponding investment limitation. | Lending Securities (non-fundamental) In order to generate additional income, the Fund may lend its portfolio securities on a short-term or long-term basis to broker/dealers, banks, or other institutional borrowers of securities. The Fund will only enter into loan arrangements with broker/dealers, banks or other institutions which the Fund’s Adviser has determined are creditworthy under guidelines established by the Trustees and will receive collateral in the form of cash or U.S. government securities equal to at least 100% of the value of the securities loaned. |
No corresponding investment limitation. | Investing in CMOs (non-fundamental) The Fund may invest only in CMOs which may be: (a) collateralized by pools of mortgages in which each mortgage is guaranteed as to payment of principal and interest by an agency or instrumentality of the U.S. government; (b) collateralized by pools of mortgages in which payment of principal and interest is guaranteed by the issuer and such guarantee is collateralized by U.S. government securities; and (c) securities in which the proceeds of the issuance are invested in mortgage securities and payment of the principal and interest are supported by the credit of an agency or instrumentality of the U.S. government. |
Buying on Margin (non-fundamental) The Fund will not purchase securities on margin, provided that the Fund may obtain short-term credits necessary for the clearance of purchases and sales of securities, and further provided that the Fund may make margin deposits in connection with its use of financial options and futures, forward and spot currency contracts, swap transactions and other financial contracts or derivative instruments. | Purchases on Margin (non-fundamental) The Fund will not purchase any securities on margin, provided that the Fund may obtain short-term credits necessary for the clearance of purchases and sales of securities. |
Investing in Illiquid Investments (non-fundamental) The Fund will not make investments in holdings for which there is no readily available market, or enter into repurchase agreements or purchase time deposits that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment, if immediately after and as a result, the value of such investments would exceed, in the aggregate, 15% of the Fund’s net assets. | Illiquid Investments (non-fundamental) Same. |
Restricted Securities (non-fundamental) The Fund may invest in restricted securities. Restricted securities are any securities in which the Fund may invest pursuant to its investment objective and policies but which are subject to restrictions on resale under federal securities law. Under criteria established by the Directors, certain restricted securities are determined to be liquid. To the extent that restricted securities are not determined to be liquid, the Fund will limit their purchase, together with other illiquid securities, to 15% of its net assets. | No corresponding investment limitation. |
INVESTMENT LIMITATIONS AND POLICIES | |
Reorganizing Fund | Surviving Fund |
Additional Information (non-fundamental) In applying the concentration restriction, the Fund will adhere to the requirements of the 1940 Act which limits investments in a particular industry or group of industries to no more than 25% of the value of the Fund’s total assets. Further, in applying the concentration restriction: (a) utility companies will be divided according to their services, for example, gas, gas transmission, electric and telephone will each be considered a separate industry; (b) financial service companies will be classified according to the end users of their services, for example, automobile finance, bank finance and diversified finance will each be considered a separate industry; and (c) asset-backed securities will be classified according to the underlying assets securing such securities. For purposes of the above limitations, the Fund considers certificates of deposit and demand and time deposits issued by a U.S. branch of a domestic bank or savings association having capital, surplus and undivided profits in excess of $100,000,000 at the time of investment to be “cash items” and “bank instruments.” Cash items may include short-term obligations such as: –obligations of the U.S. government or its agencies or instrumen- talities; and –repurchase agreements. Except with respect to borrowing money, if a percentage limitation is adhered to at the time of investment, a later increase or decrease in percentage resulting from any change in value or net assets will not result in a violation of such limitation. In applying the borrowing limitation, in accordance with Section 18(f)(1) of the 1940 Act and current SEC rules and guidance, the Fund is permitted to borrow money, directly or indirectly, provided that immediately after any such borrowing, the Fund has asset coverage of at least 300% for all of the Fund’s borrowings, and provided further that in the event that such asset coverage shall at any time fall below 300% the Fund shall, within three business days, reduce the amount of its borrowings to an extent that the asset coverage of such borrowings shall be at least 300%. For purposes of the commodities policy, investments in transactions involving futures contracts and options, forward currency contracts, swap transactions and other financial contracts that settle by payment of cash are not deemed to be investments in commodities. | Additional Information (non-fundamental) In applying the concentration restriction, the Fund will adhere to the requirements of the 1940 Act which limits investments in a particular industry or group of industries to no more than 25% of the value of the Fund’s total assets. Further, in applying the concentration restriction: (a) utility companies will be divided according to their services (for example, gas, gas transmission, electric and telephone will be considered a separate industry); (b) financial service companies will be classified according to the end users of their services (for example, automobile finance, bank finance and diversified finance will each be considered a separate industry); (c) asset-backed securities will be classified according to the underlying assets securing such securities. For purposes of the above limitations, the Fund considers certificates of deposit and demand and time deposits issued by a U.S. branch of a domestic bank or savings association having capital, surplus and undivided profits in excess of $100,000,000 at the time of investment to be “cash items” and “bank instruments.” Except with respect to borrowing money, if a percentage limitation is adhered to at the time of investment, a later increase or decrease in percentage resulting from any change in value or net assets will not result in a violation of such limitation. In applying the borrowing limitation. In applying the borrowing limitation, in accordance with Section 18(f)(1) of the 1940 Act and current SEC rules and guidance, the Fund is permitted to borrow money, directly or indirectly, provided that immediately after any such borrowing, the Fund has asset coverage of at least 300% for all of the Fund’s borrowings, and provided further that in the event that such asset coverage shall at any time fall below 300% the Fund shall, within three business days, reduce the amount of its borrowings to an extent that the asset coverage of such borrowings shall be at least 300%. |
Reorganizing Fund Portfolio Managers | Surviving Fund Portfolio Managers |
Todd A. Abraham Todd A. Abraham, CFA, Senior Portfolio Manager, has been the Fund’s portfolio manager since February of 2003. Mr. Abraham is Head of the Government/Mortgage-backed Fixed Income Group. He is responsible for the day to day management of the Fund focusing on asset allocation, interest rate strategy and security selection. He has been with the Adviser or an affiliate since 1993; has worked in investment management since 1993; has managed investment portfolios since 1995. Education: B.S., Indiana University of Pennsylvania; M.B.A., Loyola College. | Todd A. Abraham Same. |
Liam O’Connell Liam O’Connell, CFA, Portfolio Manager, has been the Fund’s portfolio manager since April of 2017. Mr. O’Connell is responsible for providing research and advice on sector allocation and security selection. He has been with the Adviser or an affiliate since 2003; has worked in investment management since 2003; has managed investment portfolios since 2005. Education: B.S., Webb Institute of Naval Architecture; M.S., Johns Hopkins University; M.B.A., Massachusetts Institute of Technology. | Liam O’Connell Same. |
A: | |
Purchase Amount | Dealer Reallowance as a Percentage of Public Offering Price |
Less than $100,000 | 4.00% |
$100,000 but less than $250,000 | 3.25% |
$250,000 but less than $500,000 | 2.25% |
$500,000 but less than $1 million | 1.80% |
$1 million or greater | 0.00% |
F: | |
Less than $1 million | 1.00% |
$1 million or greater | 0.00% |
A (for purchases over $1 million): | |
Purchase Amount | Advance Commission as a Percentage of Public Offering Price |
First $1 million - $5 million | 0.75% |
Next $5 million - $20 million | 0.50% |
Over $20 million | 0.25% |
C: | |
Advance Commission as a Percentage of Public Offering Price | |
All Purchase Amounts | 1.00% |
F: | |
Purchase Amount | Advance Commission as a Percentage of Public Offering Price |
Less than $2 million | 1.00% |
$2 million but less than $5 million | 0.50% |
$5 million or greater | 0.25% |
Fund | Total Net Assets | Shares Outstanding | Net Asset Value Per Share |
Federated Hermes Government Income Securities, Inc.–Class A Shares | $13,012,958 | 1,840,554 | $7.07 |
Federated Hermes Government Income Securities, Inc.–Class C Shares | $1,541,677 | 217,640 | $7.08 |
Federated Hermes Government Income Securities, Inc.–Class F Shares | $57,434,930 | 8,141,210 | $7.05 |
Reorganization expenses | $(13,243) | – | – |
Share Adjustment1 | – | (1,432,495) | – |
Federated Hermes Government Income Fund–Service Shares | $7,842,714 | 954,924 | $8.21 |
Federated Hermes Government Income Fund, Pro Forma Combined–Service Shares | $79,819,036 | 9,721,833 | $8.21 |
Fund | Total Net Assets | Shares Outstanding | Net Asset Value Per Share |
Federated Hermes Government Income Securities, Inc.–Institutional Shares | $5,361,960 | 760,775 | $7.05 |
Reorganization expenses | $(986) | – | – |
Share Adjustment1 | – | (107,794) | – |
Federated Hermes Government Income Fund–Institutional Shares | $94,425,244 | 11,494,934 | $8.21 |
Federated Hermes Government Income Fund, Pro Forma Combined–Institutional Shares | $99,786,218 | 12,147,915 | $8.21 |
Reorganizing Fund | Surviving Fund | |||
Date | Amount | Date | Amount | |
Capital Loss Carryforward | 2/28/2023 | $8,699,180 | 1/31/2023 | $15,068,622 |
Year-to-Date Realized Gain (Loss) | 10/31/2023 | $(4,242,609) | 10/31/2023 | $(1,867,432) |
Net Unrealized Gain (Loss) | 10/31/2023 | $(6,874,769) | 10/31/2023 | $(21,439,106) |
CATEGORY | SHAREHOLDER RIGHTS Reorganizing Fund | SHAREHOLDER RIGHTS Surviving Fund |
Preemptive Rights | None. | None. |
Preferences | None. | None. |
Appraisal Rights | None. | None. |
Conversion Rights (other than the right to convert their shares to any other share class of the same fund as provided in the prospectuses of the Reorganizing Fund and the Surviving Fund) | None. | None. |
Exchange Rights (other than the right to exchange for shares of the same class of other Federated Hermes mutual funds as provided in the prospectuses of the Reorganizing Fund and the Surviving Fund) | None. | |
Minimum Account Size | $1,500 for Class A, Class C, and Class F and $1,000,000 for the Institutional Shares. | $1,000,000 for Institutional Shares and Service Shares |
Annual Meeting | Not required. | Not required. |
Right to Call Shareholder Meetings | Special Meetings of Shareholders may be called by the Chairman, or by the Board of Directors; and shall be called by the Chairman, Secretary or any Director at the request in writing of the holders of not less than 25% of the outstanding voting shares of the capital stock of the Corporation | Special meetings of the shareholders may be called by the Secretary whenever ordered by the Trustees, the Chairman or requested in writing by the holder or holders of at least one-tenth of the outstanding shares of the Trust or of the relevant Series or Class entitled to vote. If the Secretary, when so ordered or requested, refuses or neglects for more than two days to call such special meeting, the Trustees, Chairman or the Shareholders so requesting may, in the name of the Secretary, call the meeting by giving notice thereof in the manner required when notice is given by the Secretary. |
CATEGORY | SHAREHOLDER RIGHTS Reorganizing Fund | SHAREHOLDER RIGHTS Surviving Fund |
Notice of Meeting | Notice must be given not less than ten or more than ninety days before the date of every Annual or Special Meeting of Shareholders | Notice must be given by the Secretary of the Trust at least fifteen days before the meeting |
Record Date for Meetings | The Board of Directors may fix a date not be more than 60 days and in case of a Meeting of Shareholders not less than l0 days prior to the date on which the particular action requiring such determination of Shareholders is to be taken. | A period not exceeding sixty (60) days preceding the date of any meeting of shareholders of the Trust or such Series or Class. |
Quorum for Meetings | At all meetings of the Shareholders the presence in person or by proxy of Shareholders entitled to cast a majority in number of votes shall be necessary to constitute a quorum for the transaction of business. In the absence of a quorum at any meeting a majority of those Shareholders present in person or by proxy may adjourn the meeting from time to time to be held at the same place without further notice than by announcement to be given at the meeting until a quorum, as above defined, shall be present, whereupon any business may be transacted which might have been transacted at the meeting originally called had the same been held at the time so called | Except as otherwise provided by law to constitute a quorum for the transaction of any business at any meeting of the Shareholders, there must be present, in person or by proxy, holders of one-fourth of the total number of Shares of all Series or Classes of the Trust then outstanding and entitled to vote at such meeting. When any one or more Series or Classes is entitled to vote as a single Series or Class, more than fifty percent of the shares of each such Series or Class entitled to vote shall constitute a quorum at a Shareholders’ meeting of that Series or Class. |
Vote Required for Election of Directors/ Trustees | Subject to any applicable requirement of law or of the Declaration of Trust or the By-Laws, a plurality of the votes cast shall elect a Trustee and all other matters shall be decided by a majority of the votes cast entitled to vote thereon. | Subject to any applicable requirement of law or of the Declaration of Trust or the By-Laws, a plurality of the votes cast shall elect a Trustee and all other matters shall be decided by a majority of the votes cast entitled to vote thereon |
Adjournment of Meetings | In the absence of a quorum at any meeting a majority of those Shareholders present in person or by proxy may adjourn the meeting from time to time to be held at the same place without further notice than by announcement to be given at the meeting until a quorum, as above defined, shall be present, whereupon any business may be transacted which might have been transacted at the meeting originally called had the same been held at the time so called. | If a quorum shall not be present for the purpose of any vote that may properly come before the meeting, the Shareholders present in person or by proxy and entitled to vote at such meeting on such matter holding a majority of the Shares present entitled to vote on such matter may by vote adjourn the meeting from time to time to be held at the same place and without further notice than by announcement to be given at the meeting until a quorum, as defined above, entitled to vote on such matter shall be present, whereupon any such matter may be voted upon at the meeting as though held when originally convened. |
Removal of Directors/Trustees by Shareholders | At any meeting of Shareholders duly called for the purpose, any Director may by the vote of a majority of all of the Shares entitled to vote be removed from office | A Trustee may be removed at any time by written instrument signed by at least two-thirds of the number of Trustees |
CATEGORY | SHAREHOLDER RIGHTS Reorganizing Fund | SHAREHOLDER RIGHTS Surviving Fund |
Personal Liability of Officers and Directors/ Trustees | The Trust hereby agrees to indemnify each person who at any time serves as a Trustee or officer of the Trust (each such person being an “indemnitee”) against: (a) any liabilities and expenses, including amounts paid in satisfaction of judgments, in compromise or as fines and penalties, and counsel fees incurred by such indemnitee in connection with the defense or disposition of any action, suit or other proceeding, whether civil or criminal, before any court or administrative or investigative body in which he may be or may have been involved as a party or otherwise or with which he may be or may have been threatened, by virtue of his being or having been a Trustee or officer of the Trust or his serving or having served as a trustee, director, officer, partner, or fiduciary of another trust, corporation, partnership, joint venture, or other enterprise at the request of the Trust; and (b) any liabilities and expenses, including, without limitation, the cost of credit monitoring, incurred by the indemnified representative as a result of the indemnified representative, while acting in an indemnified capacity, having provided personally identifiable information, including, without limitation, birthdates, social security numbers, driver’s license numbers or passport numbers, to a regulator or counterparty by or with whom the Trust, or its series, is regulated or engages in business to satisfy a legal or procedural requirement of such regulator or counterparty, including, without limitation, know-your-customer or anti-money laundering requirements, and the security of such personally identifiable information is compromised and used to the detriment of the indemnified representative; provided, however, that, in the case of clause (a) and clause (b), no indemnitee shall be indemnified hereunder against any liability to any person or any expense of such indemnitee arising by reason of (i) willful misfeasance, (ii) bad faith, (iii) gross negligence, or (iv) reckless disregard of the duties involved in the conduct of his position. | No Trustee, Officer, employee or agent of the Trust shall have the power to bind any other Trustee, Officer, employee or agent of the Trust personally. The Trustees, Officers, employees or agents of the Trust in incurring any debts, liabilities or obligations, or in taking or omitting any other actions for or in connection with the Trust are, and each shall be deemed to be, acting as Trustee, Officer, employee or agent of the Trust and not in his own individual capacity. Provided they have acted under the belief that their actions are in the best interest of the Trust, the Trustees and Officers shall not be responsible for or liable in any event for neglect or wrong doing by them or any Officer, agent, employee, investment adviser or principal underwriter of the Trust or of any entity providing administrative services for the Trust, but nothing herein contained shall protect any Trustee of Officer against any liability to which he would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his office. |
CATEGORY | SHAREHOLDER RIGHTS Reorganizing Fund | SHAREHOLDER RIGHTS Surviving Fund |
Personal Liability of Shareholders | The Trustees, officers, employees or agents of the Trust shall have no power to bind any Shareholder of any Series or Class personally or to call upon any Shareholder for the payment of any sum of money or assessment whatsoever, other than such as the Shareholder may at any time agree to pay by way of subscription to any Shares or otherwise. No Shareholder or former Shareholder of any Series or Class shall be liable solely by reason of his being or having been a Shareholder for any debt, claim, action, demand, suit, proceeding, judgment, decree, liability or obligation of any kind, against, or with respect to the Trust or any Series or Class arising out of any action taken or omitted for or on behalf of the Trust or such Series or Class, and the Trust or such Series or Class shall be solely liable therefor and resort shall be had solely to the property of the relevant Series or Class of the Trust for the payment or performance thereof. Each Shareholder or former Shareholder of any Series or Class (or their heirs, executors, administrators or other legal representatives or, in case of a corporate entity, its corporate or general successor) shall be entitled to indemnified and reimbursement by the Trust to the full extent of such liability and the costs of any litigation or other proceedings in which such liability shall have been determined, including, without limitation, the fees and disbursements of counsel if, contrary to the provision hereof, such Shareholder or former Shareholder of such Series or Class shall be held to personally liability. Such indemni- fication and reimbursement shall come exclusively from the assets of the relevant Series or Class. The Trust shall, upon request by a Shareholder or former Shareholder, assume the defense of any claim made against any Shareholder for any act or obligation of the Trust or any Series or Class and satisfy any judgment thereon. | The Trustees, Officers, employees or agents of the Trust shall have no power to bind any Shareholder of any Series or Class personally or to call upon any Shareholder for the payment of any sum of money or assessment whatsoever, other than such as the Shareholder may at any time agree to pay by way of subscription for any Shares or otherwise. No Shareholder or former Shareholder of any Series or Class shall be liable solely by reason of his being or having been a Shareholder for any debt, claim, action, demand, suit, proceeding, judgment, decree, liability or obligation of any kind, against or with respect to the Trust or any Series or Class arising out of any action taken or omitted for or on behalf of the Trust or such Series or Class, and the Trust or such Series or Class shall be solely liable therefor and resort shall be had solely to the property of the relevant Series or Class of the Trust for the payment or performance thereof. Each Shareholder or former Shareholder of any Series or Class (or their heirs, executors, administrators or other legal representatives or, in case of a corporate entity, its corporate or general successor) shall be entitled to indemnity and reimbursement out of the Trust property to the full extent of such liability and the costs of any litigation or other proceedings in which such liability shall have been determined, including, without limitation, the fees and disbursements of counsel if, contrary to the provisions hereof, such Shareholder or former Shareholder of such Series or Class shall be held to personal liability. Such indemnification and reimbursement shall come exclusively from the assets of the relevant Series or Class. The Trust shall, upon request by a Shareholder or former Shareholder, assume the defense of any claim made against any Shareholder for any act or obligation of the Trust or any Series or Class and satisfy any judgment thereon. |
Right of Inspection | In addition to its other powers explicitly or implicitly granted under these Amended and Restated Articles of Incorporation, by law or otherwise, the Board of Directors of the Corporation may from time to time determine whether, to what extent, at what times and places, and under what conditions and regulations the accounts and books of the Corporation, or any of them, shall be open to the inspection of the shareholders, and no shareholder shall have any right to inspect any account, book or document of the Corporation except as conferred by statute or as authorized by the Board of Directors of the Corporation. | The Trustees shall from time to time determine whether and to what extent, and at what times and places, and under what conditions and regulations the accounts and books of the Trust maintained on behalf of each Series and Class or any of them shall be open to the inspection of the Shareholders of any Series or Class; and no Shareholder shall have any right to inspect any account or book or document of the Trust except that, to the extent such account or book or document relates to the Series or Class in which he is a Shareholder or the Trust generally, such Shareholder shall have such right of inspection as conferred by laws or authorized by the Trustees or by resolution of the Shareholders of the Trust or of the relevant Series or Class, as the case may be. |
CATEGORY | SHAREHOLDER RIGHTS Reorganizing Fund | SHAREHOLDER RIGHTS Surviving Fund |
Number of Authorized Shares; Par Value | Unlimited; No Par Value. | Unlimited, No Par Value. |
Name of Fund | Share Class | Outstanding Shares |
Federated Hermes Government Income Securities, Inc. | Class A Shares | XXXXXX |
Class C Shares | XXXXXX | |
Class F Shares | XXXXXX | |
Institutional Shares | XXXXXX |
Title of Class | Name and Address | Percentage of Shares |
Federated Hermes Government Income Securities, Inc. –Class A Shares | INSERT CO NAME, CITY, STATE | XXXXXX |
INSERT NAME, CITY, STATE | XXXXXX | |
INSERT NAME, CITY, STATE | XXXXXX | |
INSERT NAME, CITY, STATE | XXXXXX | |
INSERT NAME, CITY, STATE | XXXXXX | |
INSERT NAME, CITY, STATE | XXXXXX | |
INSERT NAME, CITY, STATE | XXXXXX | |
INSERT NAME, CITY, STATE | XXXXXX | |
INSERT NAME, CITY, STATE | XXXXXX | |
Federated Government Income Securities, Inc. –Class C Shares | INSERT NAME, CITY, STATE | XXXXXX |
Title of Class | Name and Address | Percentage of Shares |
INSERT NAME, CITY, STATE | XXXXXX | |
INSERT NAME, CITY, STATE | XXXXXX | |
INSERT NAME, CITY, STATE | XXXXXX | |
INSERT NAME, CITY, STATE | XXXXXX | |
INSERT NAME, CITY, STATE | XXXXXX | |
Federated Government Income Securities, Inc. –Class F Shares | INSERT NAME, CITY, STATE | XXXXX |
Federated Government Income Securities, Inc. –Institutional Shares | INSERT NAME, CITY, STATE | XXXXXX |
Name of Fund | Share Class | Outstanding Shares |
Federated Hermes Government Income Fund | Service Shares | XXXXXX |
Institutional Shares | XXXXXX |
Title of Class | Name and Address | Percentage of Shares |
Federated Hermes Government Income Fund –Service Shares | INSERT NAME, CITY, STATE | XXXXXX |
INSERT NAME, CITY, STATE | XXXXXX | |
INSERT NAME, CITY, STATE | XXXXXX | |
INSERT NAME, CITY, STATE | XXXXXX | |
Federated Hermes Government Income Fund –Institutional Shares | INSERT NAME, CITY, STATE | XXXXXX |
INSERT NAME, CITY, STATE | XXXXXX | |
INSERT NAME, CITY, STATE | XXXXXX | |
INSERT NAME, CITY, STATE | XXXXXX | |
INSERT NAME, CITY, STATE | XXXXXX |
![](https://capedge.com/proxy/N-14/0001623632-23-001457/germainpeter.jpg)
Secretary
SURVIVING FUND AND REORGANIZING FUND
LIMITATION OF LIABILITY
Federated Hermes Government Income Fund
Six Months Ended (unaudited) 8/31/2023 | Year Ended February 28 or 29, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $7.57 | $8.60 | $9.05 | $9.12 | $8.59 | $8.57 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.10 | 0.16 | 0.12 | 0.12 | 0.19 | 0.19 |
Net realized and unrealized gain (loss) | (0.11) | (1.04) | (0.44) | (0.04) | 0.53 | 0.02 |
Total From Investment Operations | (0.01) | (0.88) | (0.32) | 0.08 | 0.72 | 0.21 |
Less Distributions: | ||||||
Distributions from net investment income | (0.09) | (0.15) | (0.13) | (0.15) | (0.19) | (0.19) |
Net Asset Value, End of Period | $7.47 | $7.57 | $8.60 | $9.05 | $9.12 | $8.59 |
Total Return2 | (0.18)% | (10.24)% | (3.55)% | 0.81% | 8.50% | 2.50% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.00%4 | 1.00% | 1.00% | 1.00% | 1.00% | 1.01% |
Net investment income | 2.60%4 | 2.05% | 1.33% | 1.29% | 2.18% | 2.21% |
Expense waiver/reimbursement5 | 0.40%4 | 0.35% | 0.32% | 0.25% | 0.25% | 0.26% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $14,292 | $17,276 | $23,411 | $27,462 | $40,936 | $28,764 |
Portfolio turnover6 | 49% | 89%7 | 241% | 197% | 71% | 70% |
Portfolio turnover (excluding purchases and sales from dollar-roll transactions)6 | 49% | 84% | 63% | 41% | 59% | 70% |
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. Total returns for periods of less than one year are not annualized. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | Computed on an annualized basis. |
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. |
7 | Portfolio turnover showed a significant decline from the prior year as a result of a reduction in the prepayment of mortgages due to increasing rates. |
Six Months Ended (unaudited) 8/31/2023 | Year Ended February 28 or 29, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $7.59 | $8.62 | $9.06 | $9.13 | $8.59 | $8.58 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.07 | 0.10 | 0.05 | 0.05 | 0.13 | 0.13 |
Net realized and unrealized gain (loss) | (0.11) | (1.04) | (0.43) | (0.05) | 0.54 | 0.01 |
Total From Investment Operations | (0.04) | (0.94) | (0.38) | — | 0.67 | 0.14 |
Less Distributions: | ||||||
Distributions from net investment income | (0.06) | (0.09) | (0.06) | (0.07) | (0.13) | (0.13) |
Net Asset Value, End of Period | $7.49 | $7.59 | $8.62 | $9.06 | $9.13 | $8.59 |
Total Return2 | (0.57)% | (10.91)% | (4.18)% | 0.04% | 7.80% | 1.60% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.75%4 | 1.75% | 1.75% | 1.76% | 1.76% | 1.76% |
Net investment income | 1.84%4 | 1.28% | 0.58% | 0.51% | 1.42% | 1.47% |
Expense waiver/reimbursement5 | 0.40%4 | 0.34% | 0.32% | 0.25% | 0.24% | 0.25% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $1,840 | $2,900 | $5,358 | $15,627 | $12,670 | $9,396 |
Portfolio turnover6 | 49% | 89%7 | 241% | 197% | 71% | 70% |
Portfolio turnover (excluding purchases and sales from dollar-roll transactions)6 | 49% | 84% | 63% | 41% | 59% | 70% |
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. Total returns for periods of less than one year are not annualized. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | Computed on an annualized basis. |
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. |
7 | Portfolio turnover showed a significant decline from the prior year as a result of a reduction in the prepayment of mortgages due to increasing rates. |
Six Months Ended (unaudited) 8/31/2023 | Year Ended February 28 or 29, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $7.56 | $8.58 | $9.03 | $9.10 | $8.57 | $8.55 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.10 | 0.16 | 0.12 | 0.12 | 0.19 | 0.19 |
Net realized and unrealized gain (loss) | (0.11) | (1.03) | (0.44) | (0.04) | 0.53 | 0.02 |
Total From Investment Operations | (0.01) | (0.87) | (0.32) | 0.08 | 0.72 | 0.21 |
Less Distributions: | ||||||
Distributions from net investment income | (0.09) | (0.15) | (0.13) | (0.15) | (0.19) | (0.19) |
Net Asset Value, End of Period | $7.46 | $7.56 | $8.58 | $9.03 | $9.10 | $8.57 |
Total Return2 | (0.17)% | (10.13)% | (3.54)% | 0.82% | 8.52% | 2.51% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 0.98%4 | 0.99% | 0.99% | 0.99% | 1.00% | 1.00% |
Net investment income | 2.62%4 | 2.07% | 1.34% | 1.30% | 2.19% | 2.21% |
Expense waiver/reimbursement5 | 0.40%4 | 0.35% | 0.32% | 0.25% | 0.25% | 0.25% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $61,961 | $66,214 | $85,090 | $102,496 | $108,006 | $109,477 |
Portfolio turnover6 | 49% | 89%7 | 241% | 197% | 71% | 70% |
Portfolio turnover (excluding purchases and sales from dollar-roll transactions)6 | 49% | 84% | 63% | 41% | 59% | 70% |
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. Total returns for periods of less than one year are not annualized. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | Computed on an annualized basis. |
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. |
7 | Portfolio turnover showed a significant decline from the prior year as a result of a reduction in the prepayment of mortgages due to increasing rates. |
Six Months Ended (unaudited) 8/31/2023 | Year Ended February 28 or 29, | Period Ended 2/28/20211 | ||
2023 | 2022 | |||
Net Asset Value, Beginning of Period | $7.55 | $8.58 | $9.03 | $9.24 |
Income From Investment Operations: | ||||
Net investment income (loss)2 | 0.11 | 0.18 | 0.14 | 0.11 |
Net realized and unrealized gain (loss) | (0.11) | (1.04) | (0.44) | (0.17) |
Total From Investment Operations | — | (0.86) | (0.30) | (0.06) |
Less Distributions: | ||||
Distributions from net investment income | (0.10) | (0.17) | (0.15) | (0.15) |
Net Asset Value, End of Period | $7.45 | $7.55 | $8.58 | $9.03 |
Total Return3 | (0.06)% | (10.04)% | (3.31)% | (0.69)% |
Ratios to Average Net Assets: | ||||
Net expenses4 | 0.75%5 | 0.75% | 0.75% | 0.75%5 |
Net investment income | 2.86%5 | 2.32% | 1.57% | 1.37%5 |
Expense waiver/reimbursement6 | 0.40%5 | 0.35% | 0.32% | 0.26%5 |
Supplemental Data: | ||||
Net assets, end of period (000 omitted) | $5,776 | $3,310 | $3,619 | $1,544 |
Portfolio turnover7 | 49% | 89%8 | 241% | 197%9 |
Portfolio turnover (excluding purchases and sales from dollar-roll transactions)7 | 49% | 84% | 63% | 41%9 |
1 | Reflects operations for the period from April 28, 2020 (commencement of operations) to February 28, 2021. |
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 the 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 showed a significant decline from the prior year as a result of a reduction in the prepayment of mortgages due to increasing rates. |
9 | Portfolio turnover is calculated at the fund level. Percentages indicated were calculated for the fiscal period ended February 28, 2021. |
Six Months Ended (unaudited) 7/31/2023 | Year Ended January 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $9.20 | $10.15 | $10.56 | $10.31 | $9.97 | $9.97 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.12 | 0.18 | 0.02 | 0.09 | 0.21 | 0.24 |
Net realized and unrealized gain (loss) | (0.31) | (0.94) | (0.34) | 0.29 | 0.35 | (0.00)2 |
Total From Investment Operations | (0.19) | (0.76) | (0.32) | 0.38 | 0.56 | 0.24 |
Less Distributions: | ||||||
Distributions from net investment income | (0.12) | (0.19) | (0.07) | (0.13) | (0.22) | (0.24) |
Distributions from net realized gain | — | — | (0.02) | — | — | — |
Total Distributions | (0.12) | (0.19) | (0.09) | (0.13) | (0.22) | (0.24) |
Net Asset Value, End of Period | $8.89 | $9.20 | $10.15 | $10.56 | $10.31 | $9.97 |
Total Return3 | (2.09)% | (7.52)% | (3.07)% | 3.73% | 5.69% | 2.51% |
Ratios to Average Net Assets: | ||||||
Net expenses4 | 0.63%5 | 0.63% | 0.63% | 0.63% | 0.63% | 0.63% |
Net investment income | 2.69%5 | 1.94% | 0.29% | 0.86% | 2.09% | 2.46% |
Expense waiver/reimbursement6 | 0.28%5 | 0.23% | 0.16% | 0.13% | 0.12% | 0.12% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $106,912 | $117,673 | $163,080 | $235,598 | $240,047 | $267,582 |
Portfolio turnover7 | 2% | 130% | 227% | 336% | 302% | 56% |
Portfolio turnover (excluding purchases and sales from dollar-roll transactions)7 | —% | 79% | 21% | 85% | 49% | 33% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
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 the 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. |
Six Months Ended (unaudited) 7/31/2023 | Year Ended January 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $9.20 | $10.15 | $10.56 | $10.31 | $9.97 | $9.97 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.11 | 0.16 | 0.01 | 0.14 | 0.19 | 0.22 |
Net realized and unrealized gain (loss) | (0.31) | (0.94) | (0.35) | 0.22 | 0.35 | (0.00)2 |
Total From Investment Operations | (0.20) | (0.78) | (0.34) | 0.36 | 0.54 | 0.22 |
Less Distributions: | ||||||
Distributions from net investment income | (0.11) | (0.17) | (0.05) | (0.11) | (0.20) | (0.22) |
Distributions from net realized gain | — | — | (0.02) | — | — | — |
Total Distributions | (0.11) | (0.17) | (0.07) | (0.11) | (0.20) | (0.22) |
Net Asset Value, End of Period | $8.89 | $9.20 | $10.15 | $10.56 | $10.31 | $9.97 |
Total Return3 | (2.19)% | (7.70)% | (3.25)% | 3.52% | 5.48% | 2.31% |
Ratios to Average Net Assets: | ||||||
Net expenses4 | 0.83%5 | 0.83% | 0.83% | 0.83% | 0.83% | 0.83% |
Net investment income | 2.50%5 | 1.73% | 0.10% | 1.36% | 1.91% | 2.26% |
Expense waiver/reimbursement6 | 0.22%5 | 0.17% | 0.12% | 0.10% | 0.09% | 0.09% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $8,680 | $10,907 | $15,249 | $16,292 | $17,083 | $23,873 |
Portfolio turnover7 | 2% | 130% | 227% | 336% | 302% | 56% |
Portfolio turnover (excluding purchases and sales from dollar-roll transactions)7 | —% | 79% | 21% | 85% | 49% | 33% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
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 the 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. |
Breakpoints, Rights of Accumulation & Letters of Intent
![](https://capedge.com/proxy/N-14/0001623632-23-001457/fhilogok11p.jpg)
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 313912404
CUSIP 313912107
CUSIP 313912602
4000 Ericsson Drive
Warrendale, Pennsylvania 15086-7561
Telephone No: 1-800-341-7400
4000 Ericsson Drive
Warrendale, Pennsylvania 15086-7561
Telephone No: 1-800-341-7400
Reorganizing Fund | Surviving Fund |
Federated Hermes Government Income Securities, Inc. | Federated Hermes Government Income Fund |
Class A Shares | Service Shares |
Class C Shares | Service Shares |
Class F Shares | Service Shares |
Institutional Shares | Institutional Shares |
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
![](https://capedge.com/proxy/N-14/0001623632-23-001457/fhilogok11p.jpg)
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
PART C. OTHER INFORMATION.
Item 15. Indemnification |
Indemnification is provided to Officers and Trustees of the Registrant pursuant to the Registrant's Declaration of Trust and By-Laws, as amended. This includes indemnification against: (a) any liabilities or expenses incurred in connection with the defense or disposition of any action, suit or proceeding in which an Officer or Trustee may be or may have been involved; and (b) any liabilities and expenses incurred by an Officer or Trustee as a result of having provided personally identifiable information to a regulator or counterparty by or with whom the Registrant (or its series, as applicable) is regulated or engages in business to satisfy a legal or procedural requirement of such regulator or counterparty. The Investment Advisory Contract, and Sub-advisory Agreement as applicable, (collectively, “Advisory Contracts”) between the Registrant and the investment adviser, and sub-adviser as applicable, (collectively, “Advisers”) of its series, provide that, in the absence of willful misfeasance, bad faith, gross negligence, or reckless disregard of the obligations or duties under the Advisory Contracts on the part of the Advisers, Advisers shall not be liable to the Registrant or to any shareholder for any act or omission in the course of or connected in any way with rendering services or for any losses that may be sustained in the purchase, holding, or sale of any security. The Registrant’s distribution contract contains provisions limiting the liability, and providing for indemnification, of the Officers and Trustees under certain circumstances. Registrant's Trustees and Officers are covered by an Investment Trust Errors and Omissions Policy. Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to Trustees, Officers, and controlling persons of the Registrant by the Registrant pursuant to the Declaration of Trust and By-Laws, as amended, or otherwise, the Registrant is aware that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Act and, therefore, is unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by Trustees), Officers, or controlling persons of the Registrant in connection with the successful defense of any act, suit, or proceeding) is asserted by such Trustees, Officers, or controlling persons in connection with the shares being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issues. Insofar as indemnification for liabilities may be permitted pursuant to Section 17 of the Investment Company Act of 1940 for Trustees, Officers, and controlling persons of the Registrant by the Registrant pursuant to the Declaration of Trust and By-Laws, as amended, or otherwise, the Registrant is aware of the position of the Securities and Exchange Commission as set forth in Investment Company Act Release No. IC-11330. Therefore, the Registrant undertakes that in addition to complying with the applicable provisions of the Declaration of Trust and By-Laws, as amended, or otherwise, in the absence of a final decision on the merits by a court or other body before which the proceeding was brought, that an indemnification payment will not be made unless in the absence of such a decision, a reasonable determination based upon factual review has been made (i) by a majority vote of a quorum of non-party Trustees who are not interested persons of the Registrant or (ii) by independent legal counsel in a written opinion that the indemnitee was not liable for an act of willful misfeasance, bad faith, gross negligence, or reckless disregard of duties. The Registrant further undertakes that advancement of expenses incurred in the defense of a proceeding (upon undertaking for repayment unless it is ultimately determined that indemnification is appropriate) against an Officer, Trustee or controlling person of the Registrant will not be made absent the fulfillment of at least one of the following conditions: (i) the indemnitee provides security for his undertaking; (ii) the Registrant is insured against losses arising by reason of any lawful advances; or (iii) a majority of a quorum of disinterested non-party Trustees or independent legal counsel in a written opinion makes a factual determination that there is reason to believe the indemnitee will be entitled to indemnification. |
Item 16. Exhibits
Exhibit Number | DESCRIPTION |
(1) | Declaration of Trust | |
Conformed copy of Amended and Restated Declaration of Trust of the Registrant dated May 19, 2000, including Amendment | + |
(2) | By-Laws | |
Conformed Copy of Amended and Restated By-Laws of the Registrant dated May 26, 1992, including Amendments | + |
(3) | Not applicable |
(4) | Form of Agreement and Plan of Reorganization are filed herein as Annex A to the Prospectus/Information Statement |
(5) | Instruments Defining Rights of Security Holders | |
Copy of Specimen Certificate for Institutional Shares of Beneficial Interest of the Registrant, as filed on paper in Post-Effective Amendment No. 2 filed March 17, 1982 [p] | ||
Copy of Specimen Certificate of Shares of Beneficial Interest for Institutional Service Shares of the Registrant, as filed via EDGAR in Post-Effective Amendment No. 27 filed March 26, 1997 on Form N-1A (File Nos. 2-75366 and 811-3352) | ||
As of September 1, 1997, Federated Securities Corp. stopped issuing share certificates. |
(6) | Investment Advisory Contracts | |
Conformed copy of the Investment Advisory Contract of the Registrant dated August 1, 1989, as amended, including Amendment and Limited Power of Attorney | + |
(7) | Underwriting Contracts | |
Conformed copy of the Distributor’s Contract of the Registrant dated June 1, 1992, including Exhibits and Amendments | + |
(8) | Not applicable |
(10) | Rule 12b-1 Plan | |
Conformed copy of the Distribution Plan between certain classes of the Registrant and Federated Securities Corp., dated February 12, 2004, including Exhibit A and Amendment | + |
(11) | Conformed Copy of Opinion and Consent of Counsel Regarding the Legality of Shares being Issued | + |
(12) | Form of Opinion regarding Tax Consequences of the Reorganization | + |
(14) | ||
Conformed copy of Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm; | + |
(15) | Not Applicable |
(16) | ||
16.1 | Conformed copy of Unanimous Consent of Trustees; | + |
16.2 | Conformed copy of Power of Attorney of the Registrant; | + |
(17) | Not Applicable |
+ | Exhibit is being filed electronically with registration statement; indicate by footnote | |
[p] | Exhibit filed on paper |
Item 17. Undertakings
(1) The undersigned Registrant agrees that prior to any public reoffering of the securities registered through the use of a prospectus which is a part of this Registration Statement by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c) of the Securities Act of 1933, the reoffering prospectus will contain the information called for by the applicable registration form for reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form.
(2) The undersigned Registrant agrees that every prospectus that is filed under paragraph (1) above will be filed as a part of an amendment to the Registration Statement and will not be used until the amendment is effective, and that, in determining any liability under the Securities Act of 1933, each post-effective amendment shall be deemed to be a new Registration Statement for the securities offered therein, and the offering of the securities at that time shall be deemed to be the initial bona fide offering of them.
(3) The undersigned Registrant agrees to file by Post-Effective Amendment the opinion of counsel regarding the tax consequences of the proposed reorganization required by Item (16)(12) of Form N-14 prior to the closing date of the reorganization.
SIGNATURES Pursuant to the requirements of the Securities Act of 1933, and the Investment Company Act of 1940, the Registrant, Federated Hermes Government Income Trust, has duly caused this Amendment to its Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Pittsburgh and Commonwealth of Pennsylvania, on the 17th day of November 2023. |
FEDERATED HERMES GOVERNMENT INCOME TRUST |
BY: /s/ George F. Magera George F. Magera, Assistant Secretary |
Pursuant to the requirements of the Securities Act of 1933, this Amendment to its Registration Statement has been signed below by the following person in the capacity and on the date indicated: |
NAME | TITLE | DATE |
BY: /s/ George F. Magera George F. Magera, | Attorney In Fact For the Persons Listed Below | November 17, 2023 |
J. Christopher Donahue* | President and Trustee (Principal Executive Officer) | |
John B. Fisher* | Trustee | |
Lori A. Hensler* | Treasurer (Principal Financial Officer/Principal Accounting Officer) | |
John T. Collins* | Trustee | |
G. Thomas Hough* | Trustee | |
Maureen E. Lally-Green* | Trustee | |
Thomas O’Neill* | Trustee | |
Madelyn A. Reilly* | Trustee | |
P. Jerome Richey* | Trustee | |
John S. Walsh* | Trustee | |
*By Power of Attorney |