United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-4017
(Investment Company Act File Number)
Federated Hermes Equity Funds
______________________________________________________________
(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: 09/30/23
Date of Reporting Period: Six months ended 03/31/23
Item 1. | Reports to Stockholders |
Share Class | Ticker | A | VSFAX | C | VSFCX | R | VSFRX |
Institutional | VSFIX | R6 | VSFSX |
Federated Hermes Clover Small Value Fund
A Portfolio of Federated Hermes Equity Funds
Sector Composition | Percentage of Total Net Assets |
Industrials | 19.9% |
Financials | 19.8% |
Consumer Discretionary | 11.8% |
Health Care | 9.2% |
Information Technology | 7.0% |
Real Estate | 6.4% |
Energy | 6.1% |
Materials | 5.6% |
Consumer Staples | 4.5% |
Utilities | 4.2% |
Communication Services | 2.0% |
Cash Equivalents2 | 1.4% |
Other Assets and Liabilities—Net3 | 2.1% |
TOTAL | 100% |
1 | 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. |
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 | ||
COMMON STOCKS— 96.5% | |||
1 | Communication Services— 2.0% | ||
53,424 | Criteo SA, ADR | $1,683,123 | |
73,920 | Yelp, Inc. | 2,269,344 | |
TOTAL | 3,952,467 | ||
Consumer Discretionary— 11.8% | |||
27,807 | Academy Sports and Outdoors, Inc. | 1,814,407 | |
125,008 | 1 | Bowlero Corp. | 2,118,886 |
46,350 | Boyd Gaming Corp. | 2,971,962 | |
50,370 | Foot Locker, Inc. | 1,999,185 | |
17,092 | 1 | LGI Homes, Inc. | 1,949,001 |
34,867 | 1 | Meritage Corp. | 4,071,071 |
27,371 | Monro Inc. | 1,352,949 | |
32,326 | 1 | Ollie’s Bargain Outlet Holding, Inc. | 1,872,968 |
11,881 | Thor Industries, Inc. | 946,203 | |
62,921 | Travel + Leisure Co. | 2,466,503 | |
40,920 | 1 | Urban Outfitters, Inc. | 1,134,302 |
6,074 | 1 | Visteon Corp. | 952,585 |
TOTAL | 23,650,022 | ||
Consumer Staples— 4.5% | |||
69,315 | B&G Foods, Inc., Class A | 1,076,462 | |
77,309 | 1 | Hostess Brands, Inc. | 1,923,448 |
146,951 | 1 | Mission Produce, Inc. | 1,632,626 |
26,054 | PriceSmart, Inc. | 1,862,340 | |
213,727 | Vector Group Ltd. | 2,566,861 | |
TOTAL | 9,061,737 | ||
Energy— 6.1% | |||
40,423 | Civitas Resources, Inc. | 2,762,508 | |
107,898 | Northern Oil and Gas, Inc. | 3,274,704 | |
73,334 | PBF Energy, Inc. | 3,179,762 | |
216,760 | TechnipFMC PLC | 2,958,774 | |
TOTAL | 12,175,748 | ||
Financials— 19.8% | |||
333,705 | AGNC Investment Corp. | 3,363,746 | |
87,432 | American Equity Investment Life Holding Co. | 3,190,394 | |
111,227 | 1 | Avantax, Inc. | 2,927,495 |
146,589 | Cadence Bank | 3,043,188 | |
69,511 | CNO Financial Group, Inc. | 1,542,449 | |
118,194 | First Commonwealth Financial Corp. | 1,469,151 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Financials— continued | |||
27,009 | First Interstate BancSystem, Inc., Class A | $806,489 | |
51,517 | Hancock Whitney Corp. | 1,875,219 | |
13,978 | Hanover Insurance Group, Inc. | 1,796,173 | |
42,827 | 1 | I3 Verticals, Inc. | 1,050,546 |
73,977 | OceanFirst Financial Corp. | 1,367,095 | |
276,657 | Old National Bancorp | 3,989,394 | |
13,983 | Primerica, Inc. | 2,408,432 | |
84,213 | Seacoast Banking Corp. of Florida | 1,995,848 | |
11,832 | Selective Insurance Group, Inc. | 1,127,944 | |
54,659 | South State Corp. | 3,895,000 | |
72,433 | United Bankshares, Inc. | 2,549,642 | |
20,495 | Wintrust Financial Corp. | 1,495,110 | |
TOTAL | 39,893,315 | ||
Health Care— 9.2% | |||
152,968 | 1 | AdaptHealth Corp. | 1,901,392 |
506,608 | 1 | ADMA Biologics, Inc. | 1,676,873 |
71,168 | 1 | Avanos Medical, Inc. | 2,116,536 |
44,893 | 1 | Envista Holdings Corp. | 1,835,226 |
21,018 | 1 | Halozyme Therapeutics, Inc. | 802,677 |
20,248 | 1 | Harmony Biosciences Holdings, Inc. | 661,097 |
21,147 | 1 | Pacira BioSciences, Inc. | 863,009 |
57,694 | 1 | Prestige Consumer Healthcare, Inc. | 3,613,375 |
70,498 | 1 | R1 RCM, Inc. | 1,057,470 |
37,929 | 1 | Schrodinger, Inc. | 998,671 |
49,618 | 1 | Tenet Healthcare Corp. | 2,948,302 |
TOTAL | 18,474,628 | ||
Industrials— 19.9% | |||
79,709 | 1 | APi Group Corp. | 1,791,858 |
35,637 | Arcosa, Inc. | 2,249,051 | |
41,457 | 1 | Azek Co., Inc. | 975,898 |
24,273 | BWX Technologies, Inc. | 1,530,170 | |
61,743 | Enerpac Tool Group Corp. | 1,574,447 | |
19,429 | EnPro Industries, Inc. | 2,018,479 | |
35,928 | Esab Corp. | 2,122,267 | |
61,759 | Federal Signal Corp. | 3,347,955 | |
148,435 | Genco Shipping & Trading Ltd. | 2,324,492 | |
42,462 | 1 | Gibraltar Industries, Inc. | 2,059,407 |
26,516 | H&E Equipment Services, Inc. | 1,172,803 | |
20,225 | Helios Technologies, Inc. | 1,322,715 | |
63,835 | Hillenbrand, Inc. | 3,034,078 | |
56,680 | Spirit AeroSystems Holdings, Inc., Class A | 1,957,160 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Industrials— continued | |||
31,393 | Terex Corp. | $1,518,793 | |
117,834 | 1 | TPI Composites, Inc. | 1,537,734 |
12,600 | Unifirst Corp. | 2,220,498 | |
62,637 | 1 | WNS Holdings Ltd., ADR | 5,835,889 |
45,013 | 1 | XPO Inc. | 1,435,915 |
TOTAL | 40,029,609 | ||
Information Technology— 7.0% | |||
16,821 | 1 | Diodes, Inc. | 1,560,316 |
30,476 | 1 | IPG Photonics Corp. | 3,757,996 |
279,650 | 1 | TTM Technologies, Inc. | 3,772,479 |
60,953 | 1 | Ultra Clean Holdings, Inc. | 2,021,201 |
79,406 | 1 | Verint Systems, Inc. | 2,957,079 |
TOTAL | 14,069,071 | ||
Materials— 5.6% | |||
32,899 | Ashland, Inc. | 3,379,056 | |
46,998 | Commercial Metals Corp. | 2,298,202 | |
259,575 | 1,2 | Ferroglobe Representation & Warranty Insurance Trust | 0 |
60,339 | 1 | MP Materials Corp. | 1,700,956 |
35,448 | 1 | Summit Materials, Inc. | 1,009,914 |
207,479 | Tronox Holdings PLC | 2,983,548 | |
TOTAL | 11,371,676 | ||
Real Estate— 6.4% | |||
86,345 | Corporate Office Properties Trust | 2,047,240 | |
108,073 | Easterly Government Properties, Inc. | 1,484,923 | |
55,443 | EPR PPTYS | 2,112,378 | |
162,691 | Kite Realty Group Trust | 3,403,496 | |
9,756 | Ryman Hospitality Properties, Inc. | 875,406 | |
87,528 | STAG Industrial, Inc. | 2,960,197 | |
TOTAL | 12,883,640 | ||
Utilities— 4.2% | |||
44,866 | Allete, Inc. | 2,888,024 | |
40,165 | Idacorp, Inc. | 4,351,075 | |
24,972 | Portland General Electric Co. | 1,220,881 | |
TOTAL | 8,459,980 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $181,916,831) | 194,021,893 |
Shares | Value | ||
INVESTMENT COMPANY— 1.4% | |||
2,744,546 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 4.82%3 (IDENTIFIED COST $2,743,229) | $2,743,997 | |
TOTAL INVESTMENT IN SECURITIES—97.9% (IDENTIFIED COST $184,660,060)4 | 196,765,890 | ||
OTHER ASSETS AND LIABILITIES - NET—2.1%5 | 4,204,870 | ||
TOTAL NET ASSETS—100% | $200,970,760 |
Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | |
Value as of 9/30/2022 | $6,347,851 |
Purchases at Cost | $54,378,957 |
Proceeds from Sales | $(57,981,337) |
Change in Unrealized Appreciation/Depreciation | $(622) |
Net Realized Gain/(Loss) | $(852) |
Value as of 3/31/2023 | $2,743,997 |
Shares Held as of 3/31/2023 | 2,744,546 |
Dividend Income | $140,112 |
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 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. |
The following is a summary of the inputs used, as of March 31, 2023, in valuing the Fund’s assets carried at fair value:
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | $178,236,067 | $— | $0 | $178,236,067 |
International | 15,785,826 | — | — | 15,785,826 |
Investment Company | 2,743,997 | — | — | 2,743,997 |
TOTAL SECURITIES | $196,765,890 | $— | $0 | $196,765,890 |
The following acronym(s) are used throughout this portfolio: | ||
ADR | —American Depositary Receipt |
Six Months Ended (unaudited) 3/31/2023 | Year Ended September 30, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $22.63 | $28.03 | $17.10 | $19.23 | $26.36 | $29.16 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.12 | 0.16 | 0.10 | 0.03 | 0.05 | 0.02 |
Net realized and unrealized gain (loss) | 2.22 | (3.23) | 10.86 | (2.09) | (3.03) | 1.47 |
Total From Investment Operations | 2.34 | (3.07) | 10.96 | (2.06) | (2.98) | 1.49 |
Less Distributions: | ||||||
Distributions from net investment income | (0.04) | (0.08) | (0.03) | (0.07) | (0.02) | (0.11) |
Distributions from net realized gain | (2.03) | (2.25) | — | — | (4.13) | (4.18) |
Total Distributions | (2.07) | (2.33) | (0.03) | (0.07) | (4.15) | (4.29) |
Net Asset Value, End of Period | $22.90 | $22.63 | $28.03 | $17.10 | $19.23 | $26.36 |
Total Return2 | 10.22% | (12.29)% | 64.10% | (10.77)% | (11.25)% | 5.64% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.13%4 | 1.13% | 1.23% | 1.26% | 1.26% | 1.27% |
Net investment income | 1.01%4 | 0.62% | 0.38% | 0.16% | 0.26% | 0.09% |
Expense waiver/reimbursement5 | 0.31%4 | 0.33% | 0.30% | 0.21% | 0.21% | 0.16% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $61,576 | $58,331 | $70,636 | $45,527 | $62,463 | $94,210 |
Portfolio turnover6 | 47% | 94% | 86% | 89% | 74% | 84% |
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. |
Six Months Ended (unaudited) 3/31/2023 | Year Ended September 30, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $20.53 | $25.75 | $15.81 | $17.85 | $24.95 | $27.91 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.02 | (0.04) | (0.09) | (0.10) | (0.09) | (0.17) |
Net realized and unrealized gain (loss) | 2.02 | (2.93) | 10.03 | (1.94) | (2.88) | 1.39 |
Total From Investment Operations | 2.04 | (2.97) | 9.94 | (2.04) | (2.97) | 1.22 |
Less Distributions: | ||||||
Distributions from net realized gain | (2.03) | (2.25) | — | — | (4.13) | (4.18) |
Net Asset Value, End of Period | $20.54 | $20.53 | $25.75 | $15.81 | $17.85 | $24.95 |
Total Return2 | 9.76% | (13.00)% | 62.87% | (11.43)% | (11.94)% | 4.82% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.92%4 | 1.92% | 2.00% | 2.04% | 2.01% | 2.02% |
Net investment income (loss) | 0.23%4 | (0.16)% | (0.40)% | (0.63)% | (0.50)% | (0.68)% |
Expense waiver/reimbursement5 | 0.30%4 | 0.31% | 0.28% | 0.22% | 0.18% | 0.15% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $7,188 | $6,498 | $8,074 | $5,716 | $9,446 | $16,028 |
Portfolio turnover6 | 47% | 94% | 86% | 89% | 74% | 84% |
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 (loss) 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. |
Six Months Ended (unaudited) 3/31/2023 | Year Ended September 30, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $22.10 | $27.44 | $16.74 | $18.83 | $25.93 | $28.78 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.11 | 0.14 | 0.09 | 0.03 | 0.05 | 0.02 |
Net realized and unrealized gain (loss) | 2.16 | (3.15) | 10.64 | (2.05) | (2.99) | 1.43 |
Total From Investment Operations | 2.27 | (3.01) | 10.73 | (2.02) | (2.94) | 1.45 |
Less Distributions: | ||||||
Distributions from net investment income | (0.02) | (0.08) | (0.03) | (0.07) | (0.03) | (0.12) |
Distributions from net realized gain | (2.03) | (2.25) | — | — | (4.13) | (4.18) |
Total Distributions | (2.05) | (2.33) | (0.03) | (0.07) | (4.16) | (4.30) |
Net Asset Value, End of Period | $22.32 | $22.10 | $27.44 | $16.74 | $18.83 | $25.93 |
Total Return2 | 10.14% | (12.36)% | 64.12% | (10.78)% | (11.27)% | 5.58% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.22%4 | 1.22% | 1.25% | 1.27% | 1.32% | 1.29% |
Net investment income | 0.93%4 | 0.53% | 0.38% | 0.16% | 0.24% | 0.08% |
Expense waiver/reimbursement5 | 0.45%4 | 0.46% | 0.51% | 0.46% | 0.40% | 0.36% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $12,853 | $11,898 | $14,260 | $9,646 | $13,675 | $16,013 |
Portfolio turnover6 | 47% | 94% | 86% | 89% | 74% | 84% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. 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. |
Six Months Ended (unaudited) 3/31/2023 | Year Ended September 30, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $22.69 | $28.11 | $17.13 | $19.29 | $26.48 | $29.30 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.15 | 0.23 | 0.16 | 0.07 | 0.10 | 0.09 |
Net realized and unrealized gain (loss) | 2.22 | (3.24) | 10.89 | (2.08) | (3.06) | 1.47 |
Total From Investment Operations | 2.37 | (3.01) | 11.05 | (2.01) | (2.96) | 1.56 |
Less Distributions: | ||||||
Distributions from net investment income | (0.10) | (0.16) | (0.07) | (0.15) | (0.10) | (0.20) |
Distributions from net realized gain | (2.03) | (2.25) | — | — | (4.13) | (4.18) |
Total Distributions | (2.13) | (2.41) | (0.07) | (0.15) | (4.23) | (4.38) |
Net Asset Value, End of Period | $22.93 | $22.69 | $28.11 | $17.13 | $19.29 | $26.48 |
Total Return2 | 10.34% | (12.10)% | 64.63% | (10.57)% | (11.05)% | 5.87% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 0.88%4 | 0.88% | 0.96% | 1.01% | 1.01% | 1.01% |
Net investment income | 1.27%4 | 0.89% | 0.64% | 0.36% | 0.50% | 0.32% |
Expense waiver/reimbursement5 | 0.31%4 | 0.33% | 0.31% | 0.22% | 0.16% | 0.12% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $112,857 | $88,206 | $97,317 | $63,019 | $203,935 | $333,887 |
Portfolio turnover6 | 47% | 94% | 86% | 89% | 74% | 84% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. 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. |
Six Months Ended (unaudited) 3/31/2023 | Year Ended September 30, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $22.72 | $28.13 | $17.15 | $19.21 | $26.39 | $29.19 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.17 | 0.24 | 0.18 | 0.09 | 0.08 | 0.14 |
Net realized and unrealized gain (loss) | 2.21 | (3.23) | 10.89 | (2.09) | (3.02) | 1.44 |
Total From Investment Operations | 2.38 | (2.99) | 11.07 | (2.00) | (2.94) | 1.58 |
Less Distributions: | ||||||
Distributions from net investment income | (0.11) | (0.17) | (0.09) | (0.06) | (0.11) | (0.20) |
Distributions from net realized gain | (2.03) | (2.25) | — | — | (4.13) | (4.18) |
Total Distributions | (2.14) | (2.42) | (0.09) | (0.06) | (4.24) | (4.38) |
Net Asset Value, End of Period | $22.96 | $22.72 | $28.13 | $17.15 | $19.21 | $26.39 |
Total Return2 | 10.37% | (12.00)% | 64.64% | (10.47)% | (11.00)% | 5.98% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 0.81%4 | 0.81% | 0.91% | 0.94% | 0.94% | 0.95% |
Net investment income | 1.44%4 | 0.91% | 0.70% | 0.53% | 0.37% | 0.52% |
Expense waiver/reimbursement5 | 0.29%4 | 0.30% | 0.28% | 0.21% | 0.14% | 0.11% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $6,497 | $5,200 | $6,924 | $4,644 | $8,297 | $56,657 |
Portfolio turnover6 | 47% | 94% | 86% | 89% | 74% | 84% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. 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. |
March 31, 2023 (unaudited)
Assets: | |
Investment in securities, at value including $2,743,997 of investments in affiliated holdings* (identified cost $184,660,060, including $2,743,229 of identified cost in affiliated holdings) | $196,765,890 |
Income receivable | 270,146 |
Income receivable from affiliated holdings | 28,059 |
Receivable for investments sold | 5,367,085 |
Receivable for shares sold | 117,698 |
Total Assets | 202,548,878 |
Liabilities: | |
Payable for investments purchased | 1,356,438 |
Payable for shares redeemed | 155,161 |
Payable for investment adviser fee (Note 5) | 2,994 |
Payable for administrative fee (Note 5) | 423 |
Payable for distribution services fee (Note 5) | 8,484 |
Payable for other service fees (Notes 2 and 5) | 16,734 |
Accrued expenses (Note 5) | 37,884 |
Total Liabilities | 1,578,118 |
Net assets for 8,819,137 shares outstanding | $200,970,760 |
Net Assets Consist of: | |
Paid-in capital | $187,219,611 |
Total distributable earnings (loss) | 13,751,149 |
Total Net Assets | $200,970,760 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($61,575,986 ÷ 2,689,409 shares outstanding), no par value, unlimited shares authorized | $22.90 |
Offering price per share (100/94.50 of $22.90) | $24.23 |
Redemption proceeds per share | $22.90 |
Class C Shares: | |
Net asset value per share ($7,187,659 ÷ 349,862 shares outstanding), no par value, unlimited shares authorized | $20.54 |
Offering price per share | $20.54 |
Redemption proceeds per share (99.00/100 of $20.54) | $20.33 |
Class R Shares: | |
Net asset value per share ($12,852,969 ÷ 575,936 shares outstanding), no par value, unlimited shares authorized | $22.32 |
Offering price per share | $22.32 |
Redemption proceeds per share | $22.32 |
Institutional Shares: | |
Net asset value per share ($112,856,988 ÷ 4,920,968 shares outstanding), no par value, unlimited shares authorized | $22.93 |
Offering price per share | $22.93 |
Redemption proceeds per share | $22.93 |
Class R6 Shares: | |
Net asset value per share ($6,497,158 ÷ 282,962 shares outstanding), no par value, unlimited shares authorized | $22.96 |
Offering price per share | $22.96 |
Redemption proceeds per share | $22.96 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended March 31, 2023 (unaudited)
Investment Income: | |
Dividends (including $140,112 received from affiliated holdings*) | $2,158,983 |
Net income on securities loaned (Note 2) | 4,085 |
TOTAL INCOME | 2,163,068 |
Expenses: | |
Investment adviser fee (Note 5) | 852,096 |
Administrative fee (Note 5) | 79,109 |
Custodian fees | 7,795 |
Transfer agent fees (Note 2) | 113,597 |
Directors’/Trustees’ fees (Note 5) | 935 |
Auditing fees | 17,379 |
Legal fees | 5,284 |
Portfolio accounting fees | 51,608 |
Distribution services fee (Note 5) | 60,471 |
Other service fees (Notes 2 and 5) | 88,933 |
Share registration costs | 41,165 |
Printing and postage | 13,140 |
Miscellaneous (Note 5) | 13,689 |
TOTAL EXPENSES | 1,345,201 |
Waivers and Reimbursements: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (297,879) |
Waivers/reimbursements of other operating expenses (Notes 2 and 5) | (23,596) |
TOTAL WAIVERS AND REIMBURSEMENTS | (321,475) |
Net expenses | 1,023,726 |
Net investment income | 1,139,342 |
Realized and Unrealized Gain (Loss) on Investments: | |
Net realized gain on investments (including net realized loss of $(852) on sales of investments in affiliated holdings*) | 3,037,524 |
Net change in unrealized depreciation of investments (including net change in unrealized appreciation of $(622) of investments in affiliated holdings*) | 13,150,995 |
Net realized and unrealized gain (loss) on investments | 16,188,519 |
Change in net assets resulting from operations | $17,327,861 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 3/31/2023 | Year Ended 9/30/2022 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $1,139,342 | $1,421,255 |
Net realized gain (loss) | 3,037,524 | 18,070,474 |
Net change in unrealized appreciation/depreciation | 13,150,995 | (43,423,863) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 17,327,861 | (23,932,134) |
Distributions to Shareholders: | ||
Class A Shares | (5,347,735) | (5,780,869) |
Class C Shares | (636,086) | (647,794) |
Class R Shares | (1,109,919) | (1,235,754) |
Institutional Shares | (8,639,712) | (8,200,916) |
Class R6 Shares | (529,819) | (639,094) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (16,263,271) | (16,504,427) |
Share Transactions: | ||
Proceeds from sale of shares | 49,256,822 | 47,093,908 |
Net asset value of shares issued to shareholders in payment of distributions declared | 15,774,400 | 15,974,896 |
Cost of shares redeemed | (35,257,943) | (49,710,854) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 29,773,279 | 13,357,950 |
Change in net assets | 30,837,869 | (27,078,611) |
Net Assets: | ||
Beginning of period | 170,132,891 | 197,211,502 |
End of period | $200,970,760 | $170,132,891 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $38,039 | $(5,280) |
Class C Shares | 4,869 | — |
Class R Shares | 6,430 | (384) |
Institutional Shares | 62,793 | (7,990) |
Class R6 Shares | 1,466 | — |
TOTAL | $113,597 | $(13,654) |
Other Service Fees Incurred | |
Class A Shares | $79,822 |
Class C Shares | 9,111 |
TOTAL | $88,933 |
Six Months Ended 3/31/2023 | Year Ended 9/30/2022 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 142,733 | $3,425,917 | 419,906 | $11,073,253 |
Shares issued to shareholders in payment of distributions declared | 222,549 | 5,190,486 | 210,746 | 5,699,068 |
Shares redeemed | (253,422) | (5,998,012) | (572,934) | (15,265,541) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 111,860 | $2,618,391 | 57,718 | $1,506,780 |
Six Months Ended 3/31/2023 | Year Ended 9/30/2022 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 50,398 | $1,061,830 | 72,936 | $1,707,022 |
Shares issued to shareholders in payment of distributions declared | 30,175 | 632,166 | 26,089 | 644,136 |
Shares redeemed | (47,177) | (1,004,264) | (96,152) | (2,345,852) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | 33,396 | $689,732 | 2,873 | $5,306 |
Six Months Ended 3/31/2023 | Year Ended 9/30/2022 | |||
Class R Shares: | Shares | Amount | Shares | Amount |
Shares sold | 58,828 | $1,388,609 | 114,354 | $3,033,541 |
Shares issued to shareholders in payment of distributions declared | 48,849 | 1,109,919 | 46,691 | 1,234,030 |
Shares redeemed | (70,255) | (1,650,739) | (142,239) | (3,663,821) |
NET CHANGE RESULTING FROM CLASS R SHARE TRANSACTIONS | 37,422 | $847,789 | 18,806 | $603,750 |
Six Months Ended 3/31/2023 | Year Ended 9/30/2022 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,509,928 | $35,875,232 | 1,101,667 | $29,050,524 |
Shares issued to shareholders in payment of distributions declared | 357,951 | 8,366,945 | 288,525 | 7,813,254 |
Shares redeemed | (833,788) | (20,054,334) | (965,535) | (25,232,564) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 1,034,091 | $24,187,843 | 424,657 | $11,631,214 |
Six Months Ended 3/31/2023 | Year Ended 9/30/2022 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 317,475 | $7,505,234 | 83,640 | $2,229,568 |
Shares issued to shareholders in payment of distributions declared | 20,329 | 474,884 | 21,573 | 584,408 |
Shares redeemed | (283,707) | (6,550,594) | (122,453) | (3,203,076) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | 54,097 | $1,429,524 | (17,240) | $(389,100) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 1,270,866 | $29,773,279 | 486,814 | $13,357,950 |
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% |
Class R Shares | 0.50% |
Distribution Services Fees Incurred | Distribution Services Fees Waived | |
Class C Shares | $27,332 | $— |
Class R Shares | 33,139 | (9,942) |
TOTAL | $60,471 | $(9,942) |
Purchases | $105,885,855 |
Sales | $91,326,016 |
Beginning Account Value 10/1/2022 | Ending Account Value 3/31/2023 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,102.20 | $5.92 |
Class C Shares | $1,000 | $1,097.60 | $10.04 |
Class R Shares | $1,000 | $1,101.40 | $6.39 |
Institutional Shares | $1,000 | $1,103.40 | $4.61 |
Class R6 Shares | $1,000 | $1,103.70 | $4.25 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,019.30 | $5.69 |
Class C Shares | $1,000 | $1,015.36 | $9.65 |
Class R Shares | $1,000 | $1,018.85 | $6.14 |
Institutional Shares | $1,000 | $1,020.54 | $4.43 |
Class R6 Shares | $1,000 | $1,020.89 | $4.08 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.13% |
Class C Shares | 1.92% |
Class R Shares | 1.22% |
Institutional Shares | 0.88% |
Class R6 Shares | 0.81% |
Annual Evaluation of Adequacy and Effectiveness
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 314172271
CUSIP 314172172
CUSIP 314172263
CUSIP 31421N808
Share Class | Ticker | A | BEARX | C | PBRCX | Institutional | PBRIX |
Federated Hermes Prudent Bear Fund
A Portfolio of Federated Hermes Equity Funds
Percentage of Total Net Assets | |
Securities Sold Short | (60.4)% |
Derivative Contracts—Short (notional value)1 | (46.8)% |
U.S. Treasury Securities | 47.2% |
Common Stocks | 10.8% |
Other Security Type | 0.1% |
Cash Equivalents2 | 43.5% |
Adjustment for Derivative Contracts (notional value)1 | 41.3% |
Collateral on Deposit for Securities Sold Short | 65.9% |
Other Assets and Liabilities—Net3 | (1.6)% |
TOTAL | 100% |
Sector Composition | Percentage of Total Securities Sold Short5 |
Broad Equity Index | 93.6% |
Financials | 1.2% |
Health Care | 1.0% |
Information Technology | 1.0% |
Industrials | 0.8% |
Consumer Discretionary | 0.5% |
Consumer Staples | 0.5% |
Real Estate | 0.4% |
Materials | 0.3% |
Communication Services | 0.3% |
Utilities | 0.3% |
Energy | 0.1% |
TOTAL | 100% |
1 | Derivative contracts may consist of futures, forwards, written options and swaps. More complete information regarding the Fund’s direct investments in derivative contracts, including unrealized appreciation (depreciation), value and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report. |
2 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. |
3 | Assets, other than investments in securities, securities sold short, derivative contracts and collateral on deposit for securities sold short, less liabilities. See Statement of Assets and Liabilities. |
4 | 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. |
5 | Includes any short positions on futures contracts. |
Shares, Principal Amount or Contracts | Value | ||
U.S. TREASURY— 47.2% | |||
U.S. Treasury Bills— 47.2% | |||
$255,000,000 | 1,2 | United States Treasury Bill, 4.633%, 5/18/2023 (IDENTIFIED COST $253,492,730) | $253,526,865 |
COMMON STOCKS— 10.8% | |||
Communication Services— 0.7% | |||
10,000 | 3 | Alphabet, Inc., Class A | 1,037,300 |
14,000 | 3 | Match Group, Inc. | 537,460 |
4,000 | 3 | Meta Platforms, Inc. | 847,760 |
24,000 | 3 | TripAdvisor, Inc. | 476,640 |
15,000 | Verizon Communications, Inc. | 583,350 | |
15,000 | 3 | ZoomInfo Technologies, Inc. | 370,650 |
TOTAL | 3,853,160 | ||
Consumer Discretionary— 0.6% | |||
3,000 | 3 | Airbnb, Inc. | 373,200 |
180,000 | 3 | Allbirds, Inc. | 216,000 |
5,000 | 3 | Amazon.com, Inc. | 516,450 |
70,705 | 3 | Brilliant Earth Group, Inc. | 276,457 |
300,000 | Dr. Martens PLC | 528,522 | |
10,000 | eBay, Inc. | 443,700 | |
4,000 | 3 | Expedia Group, Inc. | 388,120 |
200,000 | 3 | Moonpig Group PLC | 304,885 |
TOTAL | 3,047,334 | ||
Consumer Staples— 1.0% | |||
30,000 | Albertsons Cos., Inc. | 623,400 | |
20,000 | Altria Group, Inc. | 892,400 | |
15,000 | 3 | Bellring Brands, Inc. | 510,000 |
30,000 | 3 | Hain Celestial Group, Inc. | 514,500 |
4,000 | Kimberly-Clark Corp. | 536,880 | |
11,000 | Kroger Co. | 543,070 | |
10,000 | Philip Morris International, Inc. | 972,500 | |
4,000 | WalMart, Inc. | 589,800 | |
TOTAL | 5,182,550 | ||
Energy— 0.9% | |||
56,250 | 3 | Atlas Energy Solutions, Inc. | 957,938 |
15,000 | Coterra Energy, Inc., Class A | 368,100 | |
6,000 | Devon Energy Corp. | 303,660 | |
20,000 | HighPeak Energy, Inc. | 460,000 | |
300,000 | 3 | Ithaca Energy PLC | 554,558 |
8,000 | PDC Energy, Inc. | 513,440 |
Shares, Principal Amount or Contracts | Value | ||
COMMON STOCKS— continued | |||
Energy— continued | |||
2,000 | Pioneer Natural Resources, Inc. | $408,480 | |
32,000 | 3 | ProFrac Holding Corp. | 405,440 |
20,000 | Sitio Royalties Corp. | 452,000 | |
20,000 | 3 | TXO Energy Partners, LP | 462,200 |
TOTAL | 4,885,816 | ||
Financials— 1.2% | |||
4,500 | Aflac, Inc. | 290,340 | |
14,000 | Ally Financial, Inc. | 356,860 | |
12,000 | Bank of America Corp. | 343,200 | |
2,800 | Chubb Ltd. | 543,704 | |
12,000 | Citigroup, Inc. | 562,680 | |
33,334 | Corebridge Financial, Inc. | 534,011 | |
5,000 | Hartford Financial Services Group, Inc. | 348,450 | |
6,000 | Morgan Stanley | 526,800 | |
180,000 | 3 | Oportun Financial Corp. | 694,800 |
20,000 | Patria Investments Ltd. | 296,000 | |
3,500 | PNC Financial Services Group | 444,850 | |
19,231 | 3 | Skyward Specialty Insurance Group, Inc. | 420,582 |
14,000 | Unum Group | 553,840 | |
50,000 | Vinci Partners Investments Ltd. | 406,500 | |
TOTAL | 6,322,617 | ||
Health Care— 2.4% | |||
80,000 | 3 | AbCellera Biologics, Inc. | 603,200 |
40,000 | 3 | Alector, Inc. | 247,600 |
30,000 | 3 | Arcutis Biotherapeutics, Inc. | 330,000 |
10,000 | 3 | Beam Therapeutics, Inc. | 306,200 |
4,000 | 3 | BioNTech SE, ADR | 498,280 |
8,000 | Bristol-Myers Squibb Co. | 554,480 | |
8,000 | 3 | Centene Corp. | 505,680 |
40,000 | 3 | CureVac B.V. | 278,800 |
6,000 | CVS Health Corp. | 445,860 | |
20,000 | 3 | Decibel Therapeutics, Inc. | 60,400 |
5,000 | 3 | Dexcom, Inc. | 580,900 |
70,000 | 3 | Dialogue Health Technologies, Inc. | 185,941 |
40,000 | 3 | Dynavax Technologies Corp. | 392,400 |
1,000 | Elevance Health, Inc. | 459,810 | |
100,000 | 3 | Fusion Pharmaceuticals, Inc. | 377,000 |
100,000 | 3 | Galecto, Inc. | 199,000 |
3,000 | Gilead Sciences, Inc. | 248,910 | |
5,500 | 3 | Hologic, Inc. | 443,850 |
10,000 | 3 | Inmode Ltd. | 319,600 |
Shares, Principal Amount or Contracts | Value | ||
COMMON STOCKS— continued | |||
Health Care— continued | |||
12,000 | 3 | Mirum Pharmaceuticals, Inc. | $288,240 |
2,600 | 3 | Moderna, Inc. | 399,308 |
14,000 | 3 | Outset Medical, Inc. | 257,600 |
10,000 | 3 | Privia Health Group, Inc. | 276,100 |
10,000 | 3 | Progyny, Inc. | 321,200 |
600 | 3 | Regeneron Pharmaceuticals, Inc. | 493,002 |
78,390 | 3 | Reneo Pharmaceuticals, Inc. | 468,772 |
12,000 | Royalty Pharma PLC | 432,360 | |
18,000 | 3 | Schrodinger, Inc. | 473,940 |
30,000 | 3 | Sight Sciences, Inc. | 262,200 |
120,000 | 3 | Sonendo, Inc. | 240,000 |
64,513 | 3 | SOPHiA GENETICS SA | 320,630 |
30,482 | 3 | Structure Therapeutics, Inc., ADR | 725,167 |
88,400 | 3 | TMS Co. Ltd. | 345,206 |
900 | UnitedHealth Group, Inc. | 425,331 | |
TOTAL | 12,766,967 | ||
Industrials— 1.0% | |||
50,000 | Aris Water Solutions, Inc. | 389,500 | |
150,000 | 3 | Berkshire Grey, Inc. | 207,000 |
50,000 | 3 | Byrna Technologies, Inc. | 379,500 |
160,000 | 3 | Eurogroup Laminations S.p.A. | 841,572 |
6,000 | Science Applications International Corp. | 644,760 | |
46,200 | 3 | Skymark Airlines, Inc. | 415,807 |
15,000 | Southwest Airlines Co. | 488,100 | |
20,000 | 3 | TaskUs, Inc. | 288,800 |
40,000 | 3 | TDCX, Inc., ADR | 356,000 |
8,000 | Textron, Inc. | 565,040 | |
3,000 | United Parcel Service, Inc. | 581,970 | |
3,000 | Waste Management, Inc. | 489,510 | |
TOTAL | 5,647,559 | ||
Information Technology— 1.5% | |||
1,500 | 3 | Adobe, Inc. | 578,055 |
6,000 | 3 | Akamai Technologies, Inc. | 469,800 |
120,000 | 3 | Arteris, Inc. | 507,600 |
4,000 | 3 | Check Point Software Technologies Ltd. | 520,000 |
200,000 | 3 | Cint Group AB | 271,976 |
14,000 | Cisco Systems, Inc. | 731,850 | |
131,500 | 3 | Copperleaf Technologies, Inc. | 535,146 |
2,000 | 3 | Credo Technology Group Holding Ltd. | 18,840 |
40,000 | 3 | Expensify, Inc. | 326,000 |
6,000 | 3 | GoDaddy, Inc. | 466,320 |
Shares, Principal Amount or Contracts | Value | ||
COMMON STOCKS— continued | |||
Information Technology— continued | |||
40,000 | 3 | IONOS SE | $642,891 |
120,000 | 3 | LifeSpeak, Inc. | 58,602 |
2,000 | Microsoft Corp. | 576,600 | |
10,000 | 3,4 | Nuvei Corp. | 435,250 |
8,000 | 3 | PayPal Holdings, Inc. | 607,520 |
2,000 | 3 | Salesforce, Inc. | 399,560 |
40,000 | 3 | SimilarWeb Ltd. | 270,400 |
10,000 | 3 | SkyWater Technology, Inc. | 113,800 |
85,000 | Telefonaktiebolaget LM Ericsson, ADR | 497,250 | |
TOTAL | 8,027,460 | ||
Materials— 0.9% | |||
8,000 | CF Industries Holdings, Inc. | 579,920 | |
2,000 | Eagle Materials, Inc. | 293,500 | |
80,000 | 3 | Gatos Silver, Inc. | 522,400 |
100,000 | 3 | Lithium Royalty Corp. | 1,198,668 |
12,000 | Mosaic Co./The | 550,560 | |
5,000 | Olin Corp. | 277,500 | |
80,000 | 3 | Sprott Physical Gold Trust | 1,236,800 |
20,000 | 3 | Sprott Physical Silver Trust | 166,800 |
TOTAL | 4,826,148 | ||
Real Estate— 0.1% | |||
5,000 | Crown Castle, Inc. | 669,200 | |
Utilities— 0.5% | |||
8,000 | American Electric Power Co., Inc. | 727,920 | |
14,000 | FirstEnergy Corp. | 560,840 | |
20,000 | NRG Energy, Inc. | 685,800 | |
25,000 | PPL Corp. | 694,750 | |
TOTAL | 2,669,310 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $60,635,243) | 57,898,121 | ||
PURCHASED PUT OPTIONS— 0.1% | |||
3,000 | SPDR S&P 500 ETF Trust (PUT-Option), Notional Amount $122,817,000, Exercise Price $390. Expiration Date 4/6/2023 | 31,500 | |
2,000 | SPDR S&P 500 ETF Trust (PUT-Option), Notional Amount $81,878,000, Exercise Price $370. Expiration Date 5/19/2023 | 370,000 | |
2,000 | SPDR S&P 500 ETF Trust (PUT-Option), Notional Amount $81,878,000, Exercise Price $390. Expiration Date 4/21/2023 | 301,000 | |
TOTAL PURCHASED PUT OPTIONS (IDENTIFIED COST $1,386,311) | 702,500 |
Shares, Principal Amount or Contracts | Value | ||
INVESTMENT COMPANY— 43.5% | |||
233,487,101 | Federated Hermes Government Obligations Fund, Premier Shares, 4.69%5 (IDENTIFIED COST $233,487,101) | $233,487,101 | |
TOTAL INVESTMENT IN SECURITIES—101.6% (IDENTIFIED COST $549,001,385)6 | 545,614,587 | ||
OTHER ASSETS AND LIABILITIES - NET—(1.6)%7 | (8,700,964) | ||
TOTAL NET ASSETS—100% | $536,913,623 |
Shares | Value | ||
Broad Equity Index— (53.6)% | |||
126,000 | ARK Fintech Innovation ETF | $2,370,060 | |
12,000 | iShares FTSE/Xinhua China 25 | 354,360 | |
38,000 | iShares MSCI Canada Index Fund | 1,298,840 | |
28,000 | iShares MSCI Emerging Markets ETF | 1,104,880 | |
16,000 | iShares MSCI Japan ETF | 939,040 | |
36,000 | iShares MSCI United Kingdom | 1,161,360 | |
61,300 | iShares Russell 2000 ETF | 10,935,920 | |
651,000 | S&P Depositary Receipts Trust | 266,512,890 | |
6,000 | SPDR Dow Jones Industrial Average ETF Trust | 1,995,720 | |
20,000 | Vanguard European ETF | 1,219,000 | |
TOTAL | 287,892,070 | ||
Communication Services— (0.3)% | |||
4,500 | 3 | Liberty Broadband Corp. | 367,650 |
3,300 | Omnicom Group, Inc. | 311,322 | |
13,100 | Paramount Global, Class B | 292,261 | |
2,100 | 3 | Take-Two Interactive Software, Inc. | 250,530 |
4,100 | Walt Disney Co. | 410,533 | |
TOTAL | 1,632,296 | ||
Consumer Discretionary— (0.5)% | |||
1,000 | 3 | Burlington Stores, Inc. | 202,100 |
30,000 | 3 | Carnival Corp. | 304,500 |
2,500 | Columbia Sportswear Co. | 225,600 | |
35,000 | Hanesbrands, Inc. | 184,100 | |
7,000 | Hasbro, Inc. | 375,830 | |
700 | Lithia Motors, Inc. | 160,251 | |
24,000 | Newell Brands, Inc. | 298,560 | |
20,000 | 3 | Rivian Automotive, Inc. | 309,600 |
8,000 | 3 | Skechers USA, Inc., Class A | 380,160 |
2,000 | Target Corp. | 331,260 | |
10,000 | V.F. Corp. | 229,100 | |
TOTAL | 3,001,061 |
Shares | Value | ||
Consumer Staples— (0.5)% | |||
3,000 | 3 | Dollar Tree, Inc. | $430,650 |
3,500 | Ingredion, Inc. | 356,055 | |
8,000 | Kraft Heinz Co./The | 309,360 | |
6,400 | McCormick & Co., Inc. | 532,544 | |
11,000 | Reynolds Consumer Products, Inc. | 302,500 | |
4,000 | Spectrum Brands Holdings, Inc. | 264,880 | |
13,000 | Walgreens Boots Alliance, Inc. | 449,540 | |
TOTAL | 2,645,529 | ||
Energy— (0.1)% | |||
6,000 | DT Midstream, Inc. | 296,220 | |
8,000 | Enviva, Inc. | 231,040 | |
7,000 | New Fortress Energy, Inc. | 206,010 | |
TOTAL | 733,270 | ||
Financials— (1.3)% | |||
24,000 | AGNC Investment Corp. | 241,920 | |
4,000 | Apollo Global Management LLC | 252,640 | |
3,000 | Assurant, Inc. | 360,210 | |
5,000 | Bank of Hawaii Corp. | 260,400 | |
22,000 | Blue Owl Capital, Inc. | 243,760 | |
3,000 | Cboe Global Markets, Inc. | 402,720 | |
3,000 | Cincinnati Financial Corp. | 336,240 | |
8,000 | Citizens Financial Group, Inc. | 242,960 | |
1,500 | CME Group, Inc. | 287,280 | |
20,000 | CVB Financial Corp. | 333,600 | |
40,000 | Financial Select Sector SPDR Fund | 1,286,000 | |
25,000 | FNB Corp. (PA) | 290,000 | |
10,000 | Invesco Ltd. | 164,000 | |
9,000 | KKR & Co., Inc., Class Common | 472,680 | |
200 | 3 | Markel Corp. | 255,482 |
5,000 | Prosperity Bancshares, Inc. | 307,600 | |
3,000 | Prudential Financial, Inc. | 248,220 | |
4,000 | Tradeweb Markets, Inc. | 316,080 | |
10,000 | Truist Financial Corp. | 341,000 | |
8,000 | Webster Financial Corp. Waterbury | 315,360 | |
TOTAL | 6,958,152 | ||
Health Care— (1.1)% | |||
51,000 | ARK Innovation ETF | 2,057,340 | |
8,000 | Baxter International, Inc. | 324,480 | |
2,200 | Becton Dickinson & Co. | 544,588 | |
9,000 | 3 | Boston Scientific Corp. | 450,270 |
1,400 | 3 | Charles River Laboratories International, Inc. | 282,548 |
10,000 | 3 | Envista Holdings Corp. | 408,800 |
8,000 | 3 | Exact Sciences Corp. | 542,480 |
1,300 | 3 | Illumina, Inc. | 302,315 |
1,400 | 3 | Repligen Corp. | 235,704 |
Shares | Value | ||
Health Care— continued | |||
2,000 | SPDR S&P Biotech ETF | $152,420 | |
1,200 | Stryker Corp. | 342,564 | |
6,000 | 3 | Tenet Healthcare Corp. | 356,520 |
TOTAL | 6,000,029 | ||
Industrials— (0.9)% | |||
5,000 | 3 | AMERCO | 298,250 |
10,000 | 3 | Driven Brands Holdings, Inc. | 303,100 |
2,200 | Eaton Corp. PLC | 376,948 | |
5,000 | Graco, Inc. | 365,050 | |
3,000 | Jacobs Solutions, Inc. | 352,530 | |
10,000 | MDU Resources Group, Inc. | 304,800 | |
10,000 | Pentair PLC | 552,700 | |
2,000 | Regal Rexnord Corp. | 281,460 | |
1,500 | 3 | Siteone Landscape Supply, Inc. | 205,305 |
4,000 | Stanley Black & Decker, Inc. | 322,320 | |
14,000 | 3 | SunRun, Inc. | 282,100 |
2,000 | TransUnion | 124,280 | |
28,000 | Vertiv Holdings Co. | 400,680 | |
3,000 | 3 | WESCO International, Inc. | 463,620 |
TOTAL | 4,633,143 | ||
Information Technology— (1.1)% | |||
8,000 | Avnet, Inc. | 361,600 | |
4,000 | 3 | Ceridian HCM Holding, Inc. | 292,880 |
4,000 | 3 | CloudFlare, Inc. | 246,640 |
7,800 | 3 | Confluent, Inc. | 187,746 |
10,000 | Dell Technologies, Inc. | 402,100 | |
2,400 | 3 | First Solar, Inc. | 522,000 |
6,000 | Intel Corp. | 196,020 | |
11,000 | Juniper Networks, Inc. | 378,620 | |
4,600 | Marvell Technology, Inc. | 199,180 | |
3,800 | MKS Instruments, Inc. | 336,756 | |
6,400 | 3 | nCino, Inc. | 158,592 |
3,300 | Paychex, Inc. | 378,147 | |
1,100 | 3 | Paylocity Corp. | 218,658 |
800 | Roper Technologies, Inc. | 352,552 | |
10,000 | 3 | SentinelOne, Inc. | 163,600 |
900 | 3 | Teledyne Technologies, Inc. | 402,624 |
2,300 | Texas Instruments, Inc. | 427,823 | |
1,000 | 3 | Tyler Technologies, Inc. | 354,640 |
2,800 | 3 | Wolfspeed, Inc. | 181,860 |
TOTAL | 5,762,038 | ||
Materials— (0.3)% | |||
6,000 | Ball Corp. | 330,660 | |
4,000 | Crown Holdings, Inc. | 330,840 | |
4,000 | DuPont de Nemours, Inc. | 287,080 |
Shares | Value | ||
Materials— continued | |||
4,000 | International Flavors & Fragrances, Inc. | $367,840 | |
4,000 | RPM International, Inc. | 348,960 | |
TOTAL | 1,665,380 | ||
Real Estate— (0.4)% | |||
2,000 | Alexandria Real Estate Equities, Inc. | 251,180 | |
3,000 | Digital Realty Trust, Inc. | 294,930 | |
15,000 | Healthcare Realty Trust, Inc. | 289,950 | |
8,000 | Invitation Homes, Inc. | 249,840 | |
140,000 | 3 | Opendoor Technologies, Inc. | 246,400 |
6,500 | Rexford Industrial Realty, Inc. | 387,725 | |
5,000 | Welltower, Inc. | 358,450 | |
TOTAL | 2,078,475 | ||
Utilities— (0.3)% | |||
6,000 | Alliant Energy Corp. | 320,400 | |
2,000 | American Water Works Co., Inc. | 292,980 | |
5,000 | CMS Energy Corp. | 306,900 | |
5,000 | Dominion Energy, Inc. | 279,550 | |
3,000 | Duke Energy Corp. | 289,410 | |
TOTAL | 1,489,240 | ||
Total Securities Sold Short (PROCEEDS $282,598,238) | $324,490,683 |
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized (Depreciation) |
Short Futures: | ||||
S&P 500 E-Mini Short Futures | 1,215 | $251,368,313 | June 2023 | $(14,159,988) |
Affiliated | Value as of 9/30/2022 | Purchases at Cost | Proceeds from Sales |
Health Care: | |||
Dynavax Technologies Corp. | $— | $421,026 | $— |
Fusion Pharmaceuticals, Inc. | $150,500 | $116,655 | $— |
Affiliated issuers no longer in the portfolio at period end | $270,400 | $— | $(522,060) |
TOTAL OF AFFILIATED COMPANIES TRANSACTIONS | $420,900 | $537,681 | $(522,060) |
Change in Unrealized Appreciation/ Depreciation | Net Realized Gain/ (Loss) | Value as of 3/31/2023 | Shares Held as of 3/31/2023 | Dividend Income |
$(28,626) | $— | $392,400 | 40,000 | $— |
$109,845 | $— | $377,000 | 100,000 | $— |
$(115,327) | $366,987 | $— | — | $— |
$(34,108) | $366,987 | $769,400 | 140,000 | $— |
Federated Hermes Government Obligations Fund, Premier Shares | |
Value as of 9/30/2022 | $351,982,816 |
Purchases at Cost | $728,466,314 |
Proceeds from Sales | $(846,962,029) |
Change in Unrealized Appreciation/Depreciation | $— |
Net Realized Gain/(Loss) | $— |
Value as of 3/31/2023 | $233,487,101 |
Shares Held as of 3/31/2023 | 233,487,101 |
Dividend Income | $5,861,538 |
1 | All or a portion of this security is pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding short futures and securities sold short contracts. |
2 | Discount rate(s) at time of purchase. |
3 | Non-income-producing security. |
4 | 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 March 31, 2023, these restricted securities amounted to $435,250, which represented 0.1% of total net assets. |
5 | 7-day net yield. |
6 | Also represents cost of investments for federal tax purposes. |
7 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
The following is a summary of the inputs used, as of March 31, 2023, in valuing the Fund’s assets carried at fair value:
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
U.S. Treasury | $— | $253,526,865 | $— | $253,526,865 |
Purchased Put Options | 702,500 | — | — | 702,500 |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | 43,711,766 | — | — | 43,711,766 |
International | 11,765,401 | 2,420,954 | — | 14,186,355 |
Investment Company | 233,487,101 | — | — | 233,487,101 |
TOTAL SECURITIES | $289,666,768 | $255,947,819 | $— | $545,614,587 |
Other Financial Instruments: | ||||
Liabilities | ||||
Securities Sold Short | $(324,490,683) | $— | $— | $(324,490,683) |
Futures Contracts | (14,159,988) | — | — | (14,159,988) |
TOTAL OTHER FINANCIAL INSTRUMENTS | $(338,650,671) | $— | $— | $(338,650,671) |
The following acronym(s) are used throughout this portfolio: | ||
ADR | —American Depositary Receipt | |
ETF | —Exchange-Traded Fund | |
SPDR | —Standard & Poor’s Depositary Receipt |
Six Months Ended (unaudited) 3/31/2023 | Year Ended September 30, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $8.68 | $7.79 | $10.11 | $12.58 | $13.27 | $16.27 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.14 | (0.09) | (0.23) | (0.19) | 0.10 | (0.11) |
Net realized and unrealized gain (loss) | (1.29) | 0.98 | (2.09) | (2.21) | (0.79) | (2.89) |
Total From Investment Operations | (1.15) | 0.89 | (2.32) | (2.40) | (0.69) | (3.00) |
Less Distributions: | ||||||
Distributions from net investment income | — | — | — | (0.07) | — | — |
Net Asset Value, End of Period | $7.53 | $8.68 | $7.79 | $10.11 | $12.58 | $13.27 |
Total Return2 | (13.25)% | 11.42% | (22.95)% | (19.15)% | (5.20)% | (18.44)% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 2.72%4 | 2.65% | 3.02% | 2.85% | 2.84% | 3.54% |
Net expenses excluding dividends and other expenses related to short sales | 1.72%4 | 1.78% | 1.78% | 1.78% | 1.78% | 1.89% |
Net investment income (loss) | 3.60%4 | (1.16)% | (2.68)% | (1.65)% | 0.74% | (0.74)% |
Expense waiver/reimbursement5 | 0.04%4 | 0.04% | 0.11% | 0.11% | 0.09% | 0.10% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $70,081 | $77,378 | $40,185 | $59,987 | $53,827 | $57,253 |
Portfolio turnover6 | 75% | 201% | 148% | 247% | 313% | 284% |
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 (loss) 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. |
Six Months Ended (unaudited) 3/31/2023 | Year Ended September 30, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $7.46 | $6.74 | $8.81 | $10.98 | $11.67 | $14.42 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.10 | (0.12) | (0.25) | (0.25) | 0.002 | (0.20) |
Net realized and unrealized gain (loss) | (1.12) | 0.84 | (1.82) | (1.92) | (0.69) | (2.55) |
Total From Investment Operations | (1.02) | 0.72 | (2.07) | (2.17) | (0.69) | (2.75) |
Net Asset Value, End of Period | $6.44 | $7.46 | $6.74 | $8.81 | $10.98 | $11.67 |
Total Return3 | (13.67)% | 10.68% | (23.50)% | (19.76)% | (5.91)% | (19.07)% |
Ratios to Average Net Assets: | ||||||
Net expenses4 | 3.52%5 | 3.42% | 3.77% | 3.63% | 3.59% | 4.28% |
Net expenses excluding dividends and other expenses related to short sales | 2.47%5 | 2.53% | 2.53% | 2.53% | 2.53% | 2.63% |
Net investment income (loss) | 2.83%5 | (1.89)% | (3.44)% | (2.46)% | 0.01% | (1.49)% |
Expense waiver/reimbursement6 | 0.04%5 | 0.04% | 0.11% | 0.11% | 0.09% | 0.10% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $17,793 | $17,104 | $8,018 | $12,696 | $10,422 | $12,090 |
Portfolio turnover7 | 75% | 201% | 148% | 247% | 313% | 284% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
3 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | Computed on an annualized basis. |
6 | 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. |
7 | Securities that mature are considered sales for purposes of this calculation. |
Six Months Ended (unaudited) 3/31/2023 | Year Ended September 30, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $8.95 | $8.02 | $10.38 | $12.92 | $13.59 | $16.63 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.16 | (0.06) | (0.21) | (0.22) | 0.14 | (0.07) |
Net realized and unrealized gain (loss) | (1.34) | 0.99 | (2.15) | (2.21) | (0.81) | (2.97) |
Total From Investment Operations | (1.18) | 0.93 | (2.36) | (2.43) | (0.67) | (3.04) |
Less Distributions: | ||||||
Distributions from net investment income | — | — | — | (0.11) | — | — |
Net Asset Value, End of Period | $7.77 | $8.95 | $8.02 | $10.38 | $12.92 | $13.59 |
Total Return2 | (13.18)% | 11.60% | (22.74)% | (18.97)% | (4.93)% | (18.28)% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 2.52%4 | 2.42% | 2.69% | 2.64% | 2.56% | 3.26% |
Net expenses excluding dividends and other expenses related to short sales | 1.47%4 | 1.53% | 1.53% | 1.53% | 1.53% | 1.63% |
Net investment income (loss) | 3.84%4 | (0.76)% | (2.38)% | (1.79)% | 1.03% | (0.48)% |
Expense waiver/reimbursement5 | 0.04%4 | 0.03% | 0.11% | 0.09% | 0.09% | 0.10% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $449,039 | $406,207 | $116,071 | $196,933 | $77,603 | $86,727 |
Portfolio turnover6 | 75% | 201% | 148% | 247% | 313% | 284% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. 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 (loss) 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. |
March 31, 2023 (unaudited)
Assets: | |
Investment in securities, at value including $234,256,501 of investments in affiliated holdings* (identified cost $549,001,385, including $234,150,704 of identified cost in affiliated holdings) | $545,614,587 |
Cash denominated in foreign currencies (identified cost $124,811) | 127,344 |
Deposit at broker for short sales | 343,447,973 |
Income receivable | 68,930 |
Income receivable from affiliated holdings | 914,821 |
Interest receivable on short positions | 148,400 |
Receivable for shares sold | 1,404,894 |
Total Assets | 891,726,949 |
Liabilities: | |
Securities sold short, at value (proceeds $282,598,238) | 324,490,683 |
Dividends payable on short positions | 1,157,190 |
Payable for investments purchased | 23,387,682 |
Payable for shares redeemed | 2,068,147 |
Payable to bank | 156,199 |
Payable for variation margin on futures contracts | 3,508,317 |
Payable for investment adviser fee (Note 5) | 4,141 |
Payable for administrative fee (Note 5) | 1,167 |
Payable for distribution services fee (Note 5) | 9,698 |
Payable for other service fees (Notes 2 and 5) | 28,751 |
Accrued expenses (Note 5) | 1,351 |
Total Liabilities | 354,813,326 |
Net assets for 69,829,484 shares outstanding | $536,913,623 |
Net Assets Consist of: | |
Paid-in capital | $1,529,809,565 |
Total distributable earnings (loss) | (992,895,942) |
Total Net Assets | $536,913,623 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($70,081,010 ÷ 9,307,568 shares outstanding), no par value, unlimited shares authorized | $7.53 |
Offering price per share (100/94.50 of $7.53) | $7.97 |
Redemption proceeds per share | $7.53 |
Class C Shares: | |
Net asset value per share ($17,793,314 ÷ 2,762,318 shares outstanding), no par value, unlimited shares authorized | $6.44 |
Offering price per share | $6.44 |
Redemption proceeds per share (99.00/100 of $6.44) | $6.38 |
Institutional Shares: | |
Net asset value per share ($449,039,299 ÷ 57,759,598 shares outstanding), no par value, unlimited shares authorized | $7.77 |
Offering price per share | $7.77 |
Redemption proceeds per share | $7.77 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended March 31, 2023 (unaudited)
Investment Income: | |
Interest | $15,616,673 |
Dividends (including $5,861,538 received from affiliated holdings* and net of foreign taxes withheld of $1,680) | 662,789 |
TOTAL INCOME | 16,279,462 |
Expenses: | |
Investment adviser fee (Note 5) | 3,199,422 |
Administrative fee (Note 5) | 201,406 |
Custodian fees | 31,142 |
Transfer agent fees | 236,734 |
Directors’/Trustees’ fees (Note 5) | 1,695 |
Auditing fees | 19,625 |
Legal fees | 5,285 |
Portfolio accounting fees | 60,416 |
Distribution services fee (Note 5) | 65,773 |
Other service fees (Notes 2 and 5) | 108,175 |
Share registration costs | 76,893 |
Printing and postage | 16,633 |
Miscellaneous (Note 5) | 14,475 |
Expenses related to short positions | 2,685,187 |
TOTAL EXPENSES | 6,722,861 |
Reimbursement: | |
Reimbursement of investment adviser fee (Note 5) | (105,808) |
Net expenses | 6,617,053 |
Net investment income | 9,662,409 |
Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions, Futures Contracts and Short Sales: | |
Net realized loss on investments (including net realized gain of $366,987 on sales of investments in affiliated holdings*) | $(691,848) |
Net realized loss on foreign currency transactions | (27,920) |
Net realized gain on futures contracts | 3,889,649 |
Net realized loss on short sales | (11,773,480) |
Net change in unrealized depreciation of investments (including net change in unrealized appreciation of $(34,108) on investments in affiliated holdings*) | 2,045,886 |
Net change in unrealized appreciation of translation of assets and liabilities in foreign currency | 660 |
Net change in unrealized appreciation of futures contracts | (30,256,162) |
Net change in unrealized appreciation of securities sold short | (50,243,026) |
Net realized and unrealized gain (loss) on investments, foreign currency transactions, futures contracts and short sales | (87,056,241) |
Change in net assets resulting from operations | $(77,393,832) |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 3/31/2023 | Year Ended 9/30/2022 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income (loss) | $9,662,409 | $(2,172,329) |
Net realized gain (loss) | (8,603,599) | 6,893,151 |
Net change in unrealized appreciation/depreciation | (78,452,642) | 43,531,689 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | (77,393,832) | 48,252,511 |
Share Transactions: | ||
Proceeds from sale of shares | 579,460,210 | 829,730,753 |
Cost of shares redeemed | (465,842,171) | (541,567,476) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 113,618,039 | 288,163,277 |
Change in net assets | 36,224,207 | 336,415,788 |
Net Assets: | ||
Beginning of period | 500,689,416 | 164,273,628 |
End of period | $536,913,623 | $500,689,416 |
Other Service Fees Incurred | |
Class A Shares | $86,251 |
Class C Shares | 21,924 |
TOTAL | $108,175 |
Fair Value of Derivative Instruments | ||||
Assets | Liabilities | |||
Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||||
Equity contracts | $— | Payable for variation margin on futures contracts | $14,159,988* | |
Equity contracts | Purchased options, within Investment in securities at value | 702,500 | — | |
Total derivatives not accounted for as hedging instruments under ASC Topic 815 | $702,500 | $14,159,988 |
* | Includes cumulative depreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |||
Futures Contracts | Purchased Options Contracts1 | Total | |
Equity contracts | $3,889,649 | $(6,158,222) | $(2,268,573) |
1 | The net realized loss on Purchased Options Contracts is found within the Net realized loss on investments on the Statement of Operations. |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |||
Futures Contracts | Purchased Options Contracts2 | Total | |
Equity contracts | $(30,256,162) | $(683,811) | $(30,939,973) |
2 | The net change in unrealized depreciation of Purchased Options Contracts is found within the Net change in unrealized depreciation of investments on the Statement of Operations. |
Six Months Ended 3/31/2023 | Year Ended 9/30/2022 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 5,717,868 | $45,642,103 | 10,138,596 | $78,466,391 |
Shares issued to shareholders in payment of distributions declared | — | — | — | — |
Shares redeemed | (5,321,125) | (42,696,697) | (6,383,541) | (49,084,686) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 396,743 | $2,945,406 | 3,755,055 | $29,381,705 |
Six Months Ended 3/31/2023 | Year Ended 9/30/2022 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 713,327 | $4,918,187 | 1,394,372 | $9,380,660 |
Shares issued to shareholders in payment of distributions declared | — | — | — | — |
Shares redeemed | (244,939) | (1,673,242) | (289,560) | (1,853,249) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | 468,388 | $3,244,945 | 1,104,812 | $7,527,411 |
Six Months Ended 3/31/2023 | Year Ended 9/30/2022 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 64,224,096 | $528,899,920 | 93,185,627 | $741,883,702 |
Shares issued to shareholders in payment of distributions declared | — | — | — | — |
Shares redeemed | (51,826,883) | (421,472,232) | (62,291,148) | (490,629,541) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 12,397,213 | $107,427,688 | 30,894,479 | $251,254,161 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 13,262,344 | $113,618,039 | 35,754,346 | $288,163,277 |
Short-Term | Long-Term | Total |
$691,185,272 | $223,000,299 | $914,185,571 |
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 | $65,773 |
Purchases | $56,059,917 |
Sales | $37,910,824 |
Beginning Account Value 10/1/2022 | Ending Account Value 3/31/2023 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $867.50 | $12.66 |
Class C Shares | $1,000 | $863.30 | $16.35 |
Institutional Shares | $1,000 | $868.20 | $11.74 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,011.37 | $13.64 |
Class C Shares | $1,000 | $1,007.38 | $17.62 |
Institutional Shares | $1,000 | $1,012.37 | $12.64 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 2.72% |
Class C Shares | 3.52% |
Institutional Shares | 2.52% |
Annual Evaluation of Adequacy and Effectiveness
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31421N600
CUSIP 31421N501
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 Equity Funds
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date May 22, 2023
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /S/ J. Christopher Donahue
J. Christopher Donahue
Principal Executive Officer
Date May 22, 2023
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date May 22, 2023