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: 10/31/23
Date of Reporting Period: Six months ended 04/30/23
Item 1. | Reports to Stockholders |
Share Class | Ticker | A | KAUAX | C | KAUCX | R | KAUFX |
Institutional | KAUIX |
Federated Hermes Kaufmann Fund
A Portfolio of Federated Hermes Equity Funds
Sector Composition | Percentage of Total Net Assets |
Health Care | 36.4% |
Consumer Discretionary | 10.5% |
Industrials | 7.9% |
Financials | 7.2% |
Materials | 6.4% |
Real Estate | 5.6% |
Information Technology | 4.9% |
Utilities | 2.7% |
Consumer Staples | 2.6% |
Energy | 2.3% |
Communication Services | 0.4% |
U.S. Treasury Notes | 2.9% |
Securities Lending Collateral2 | 0.7% |
Cash Equivalents3 | 11.8% |
Other Assets and Liabilities—Net4 | (2.3)% |
TOTAL | 100% |
1 | Except for Securities Lending Collateral, 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 System (GICS), except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
2 | Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. |
3 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing securities lending collateral. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares or Principal Amount | Value | ||
COMMON STOCKS— 85.0% | |||
Communication Services— 0.4% | |||
407,000 | Infrastrutture Wireless Italiane SPA | $ 5,660,024 | |
100,000 | 1 | Pinterest, Inc. | 2,300,000 |
65,000 | 1 | Take-Two Interactive Software, Inc. | 8,078,850 |
175,000 | 1 | ZoomInfo Technologies, Inc. | 3,834,250 |
TOTAL | 19,873,124 | ||
Consumer Discretionary— 10.1% | |||
175,000 | 1 | Airbnb, Inc. | 20,942,250 |
450,000 | 1 | Alibaba Group Holding Ltd., ADR | 38,110,500 |
377,500 | 1 | Amazon.com, Inc. | 39,807,375 |
300,000 | 1,2 | Bowlero Corp. | 4,389,000 |
15,850 | 1 | Chipotle Mexican Grill, Inc. | 32,771,777 |
200,000 | 2 | Choice Hotels International, Inc. | 25,504,000 |
50,000 | 1 | Etsy, Inc. | 5,051,500 |
75,000 | 1 | Five Below, Inc. | 14,802,000 |
200,000 | 1 | Floor & Decor Holdings, Inc. | 19,868,000 |
775,000 | 1 | Las Vegas Sands Corp. | 49,483,750 |
72,300 | 1 | Lululemon Athletica, Inc. | 27,468,939 |
10,000 | 1 | Mercadolibre, Inc. | 12,774,900 |
326,000 | Moncler SPA | 24,169,599 | |
23,096,000 | NagaCorp Ltd. | 18,696,784 | |
100,000 | Nike, Inc., Class B | 12,672,000 | |
400,000 | 1 | Planet Fitness, Inc. | 33,256,000 |
1,337,500 | 1,2 | Sportradar Group AG | 15,474,875 |
20,000 | Vail Resorts, Inc. | 4,810,400 | |
446,684 | Wingstop, Inc. | 89,385,935 | |
TOTAL | 489,439,584 | ||
Consumer Staples— 2.6% | |||
50,800 | Costco Wholesale Corp. | 25,563,576 | |
1,000,000 | Philip Morris International, Inc. | 99,970,000 | |
TOTAL | 125,533,576 | ||
Energy— 2.3% | |||
314,000 | Cheniere Energy, Inc. | 48,042,000 | |
2,020,000 | 2 | New Fortress Energy, Inc. | 61,185,800 |
TOTAL | 109,227,800 | ||
Financials— 7.1% | |||
750,000 | 2 | Apollo Global Management, Inc. | 47,542,500 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Financials— continued | |||
58,900 | BlackRock, Inc. | $ 39,533,680 | |
6,800,000 | 1 | Blue Owl Capital, Inc. | 76,568,000 |
1 | 1,3,4 | FA Private Equity Fund IV LP | 89,360 |
2,102,000 | FinecoBank Banca Fineco SPA | 31,829,593 | |
699,000 | Hamilton Lane, Inc. | 51,502,320 | |
227,174 | London Stock Exchange Group PLC | 23,817,191 | |
60,000 | MSCI, Inc., Class A | 28,947,000 | |
120,000 | S&P Global, Inc. | 43,509,600 | |
TOTAL | 343,339,244 | ||
Health Care— 35.7% | |||
1,151,751 | 1,2 | 89Bio, Inc. | 18,404,981 |
110,000 | Abbott Laboratories | 12,151,700 | |
592,072 | 1,2 | Acrivon Therapeutics, Inc. | 7,288,406 |
2,000,000 | 1,3 | Albireo Pharma CVR, Rights | 4,300,000 |
1,135,000 | 1 | Amphastar Pharmaceuticals, Inc. | 40,598,950 |
774,637 | 1 | Amylyx Pharmaceuticals, Inc. | 21,999,691 |
222,527 | 1,2 | AnaptysBio, Inc. | 4,633,012 |
2,000,000 | 1 | Annexon, Inc. | 10,610,000 |
156,700 | 1 | Apellis Pharmaceuticals, Inc. | 13,073,481 |
1 | 3,4 | Apollo Investment Fund V | 85,188 |
2,475,000 | 1 | Arcturus Therapeutics Holdings, Inc. | 65,884,500 |
632,300 | 1 | Argenx SE | 244,057,451 |
65,000 | AstraZeneca PLC | 9,564,612 | |
4,785,000 | 1 | aTyr Pharma, Inc. | 9,330,750 |
250,000 | 1,2 | Century Therapeutics, Inc. | 782,500 |
267,745 | 1 | Century Therapeutics, Inc. | 838,042 |
354,539 | 1,2 | Cerevel Therapeutics Holdings | 10,295,813 |
525,000 | 1 | Chinook Therapeutics, Inc. | 10,505,250 |
1,942,492 | 1,3 | Contra Akouos, Inc., Rights | 1,534,569 |
2,681,070 | 1 | Corcept Therapeutics, Inc. | 60,404,507 |
195,000 | 1,2 | CRISPR Therapeutics AG | 9,543,300 |
432,500 | Danaher Corp. | 102,463,575 | |
401,500 | 1 | Denali Therapeutics, Inc. | 9,973,260 |
1,185,000 | 1 | Dexcom, Inc. | 143,787,900 |
6,572,140 | 1 | Dynavax Technologies Corp. | 68,415,977 |
239,452 | 1 | EDAP TMS SA, ADR | 2,588,476 |
150,000 | Eli Lilly & Co. | 59,379,000 | |
50,000 | 1 | Establishment Labs Holdings, Inc. | 3,484,500 |
500,000 | 1 | Fusion Pharmaceuticals, Inc. | 1,925,000 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Health Care— continued | |||
1,340,000 | 1 | Fusion Pharmaceuticals, Inc. | $ 5,159,000 |
64,400 | 1 | Genmab A/S | 26,454,416 |
379,168 | 1 | Gracell Biotechnologies, Inc., ADR | 659,752 |
313,900 | 1 | Guardant Health, Inc. | 7,081,584 |
1,475,700 | 1 | IDEAYA Biosciences, Inc. | 26,946,282 |
39,300 | 1 | IDEXX Laboratories, Inc. | 19,341,888 |
57,000 | 1 | Illumina, Inc. | 11,716,920 |
126,500 | 1 | Inspire Medical Systems, Inc. | 33,855,195 |
113,600 | 1 | Insulet Corp. | 36,129,344 |
990,741 | 1 | Intellia Therapeutics, Inc. | 37,400,473 |
77,400 | 1 | Intuitive Surgical, Inc. | 23,314,428 |
164,133 | 1,3 | Laronde, Inc. | 3,559,241 |
1 | 1,3,4 | Latin Healthcare Fund | 263,909 |
968,100 | 1 | Legend Biotech Corp., ADR | 66,518,151 |
800,000 | 1,2 | Merus N.V. | 15,344,000 |
650,000 | 1 | Minerva Neurosciences, Inc. | 1,800,500 |
416,895 | 1,2 | Moonlake Immunotherapeutics | 8,879,863 |
200,000 | 1 | Morphic Holding, Inc. | 9,452,000 |
228,500 | 1 | Natera, Inc. | 11,589,520 |
183,200 | Novo Nordisk A/S | 30,561,062 | |
668,637 | 1 | Orchard Therapeutics PLC, ADR | 3,216,144 |
8,200 | 1 | Penumbra, Inc. | 2,329,784 |
220,000 | 1 | Privia Health Group, Inc. | 6,078,600 |
150,000 | 1 | Prometheus Biosciences, Inc. | 29,092,500 |
1,356,000 | 1 | Regulus Therapeutics, Inc. | 1,803,480 |
505,000 | 1,3 | Regulus Therapeutics, Inc. | 604,485 |
180,000 | 1 | Repligen Corp. | 27,293,400 |
3,215,300 | 1 | Rezolute, Inc. | 6,703,900 |
2,219,978 | 1 | Rhythm Pharmaceuticals, Inc. | 44,776,956 |
358,200 | 1 | Sarepta Therapeutics, Inc. | 43,976,214 |
1,540,000 | 1,2 | Scynexis, Inc. | 4,851,000 |
10,515,725 | 1 | Seres Therapeutics, Inc. | 51,264,159 |
959,018 | 1,3 | Soteira, Inc. | 0 |
500,000 | 1,2 | Structure Therapeutics, Inc., ADR | 12,525,000 |
59,700 | Stryker Corp. | 17,889,105 | |
498,179 | 1 | Tela Bio, Inc. | 4,682,883 |
900,000 | 1 | Ultragenyx Pharmaceutical, Inc. | 39,303,000 |
40,200 | UnitedHealth Group, Inc. | 19,782,018 | |
48,550 | 1 | Vaxcyte, Inc. | 2,079,397 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Health Care— continued | |||
216,500 | 1 | Veeva Systems, Inc. | $ 38,770,820 |
600,000 | 1 | Verona Pharma PLC, ADR | 12,570,000 |
1,242,000 | 1,2 | Verve Therapeutics, Inc. | 19,785,060 |
667,230 | 1 | Zentalis Pharmaceuticals LLC | 14,699,077 |
TOTAL | 1,728,008,901 | ||
Industrials— 7.6% | |||
1,275,000 | 1 | CoStar Group, Inc. | 98,111,250 |
215,900 | Eaton Corp. PLC | 36,081,208 | |
352,000 | HEICO Corp. | 59,361,280 | |
510,000 | 1 | Mercury Systems, Inc. | 24,311,700 |
312,000 | Quanta Services, Inc. | 52,927,680 | |
35,500 | Rockwell Automation, Inc. | 10,061,055 | |
127,300 | Trane Technologies PLC | 23,653,613 | |
31,600 | Union Pacific Corp. | 6,184,120 | |
407,500 | Wabtec Corp. | 39,800,525 | |
170,500 | Xylem, Inc. | 17,704,720 | |
TOTAL | 368,197,151 | ||
Information Technology— 4.6% | |||
32,800 | 1 | Adobe, Inc. | 12,383,968 |
15,000 | 1 | Advanced Micro Devices, Inc. | 1,340,550 |
50,000 | 1 | Confluent, Inc. | 1,100,000 |
75,000 | 1 | Crowdstrike Holdings, Inc. | 9,003,750 |
1,059,322 | 1,3,4 | Expand Networks Ltd. | 0 |
1,695,000 | 1,2 | GDS Holdings Ltd., ADR | 26,323,350 |
300,000 | 1 | HashiCorp, Inc. | 8,043,000 |
6,300 | 1 | Keysight Technologies, Inc. | 911,232 |
25,000 | Marvell Technology, Inc. | 987,000 | |
250,000 | 1 | Okta, Inc. | 17,132,500 |
10,000 | 1 | Palo Alto Networks, Inc. | 1,824,600 |
200,000 | 1 | Q2 Holdings, Inc. | 4,924,000 |
117,000 | 1 | Rogers Corp. | 18,831,150 |
3,751 | 1,3,4 | Sensable Technologies, Inc. | 0 |
75,000 | 1 | ServiceNow, Inc. | 34,456,500 |
615,000 | 1 | Shopify, Inc. | 29,796,750 |
120,000 | 1 | Splunk, Inc. | 10,348,800 |
83,000 | 1 | Tyler Technologies, Inc. | 31,459,490 |
75,489 | 1 | Workday, Inc. | 14,051,522 |
TOTAL | 222,918,162 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Materials— 6.4% | |||
1,525,000 | 4 | Agnico Eagle Mines Ltd. | $ 86,513,250 |
107,500 | Albemarle Corp. | 19,936,950 | |
3,080,000 | Barrick Gold Corp. | 58,643,200 | |
1,735,000 | Newmont Corp. | 82,239,000 | |
193,600 | Sherwin-Williams Co. | 45,987,744 | |
150,000 | Westlake Corp. | 17,067,000 | |
TOTAL | 310,387,144 | ||
Real Estate— 5.5% | |||
1,150,000 | Americold Realty Trust, Inc. | 34,028,500 | |
325,000 | Crown Castle, Inc. | 40,004,250 | |
720,000 | 2 | Easterly Government Properties, Inc. | 10,130,400 |
200,000 | Gaming and Leisure Properties, Inc. | 10,400,000 | |
205,000 | National Storage Affiliates Trust | 7,902,750 | |
1,825,000 | Physicians Realty Trust | 26,316,500 | |
350,000 | ProLogis, Inc. | 43,837,500 | |
250,000 | Ryman Hospitality Properties | 22,415,000 | |
525,000 | STAG Industrial, Inc. | 17,781,750 | |
1,500,000 | VICI Properties, Inc. | 50,910,000 | |
TOTAL | 263,726,650 | ||
Utilities— 2.7% | |||
250,000 | American Electric Power Co., Inc. | 23,105,000 | |
385,000 | Duke Energy Corp. | 38,068,800 | |
875,000 | NextEra Energy, Inc. | 67,051,250 | |
TOTAL | 128,225,050 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $2,787,585,900) | 4,108,876,386 | ||
U.S. TREASURIES— 2.9% | |||
U.S. Treasury Notes— 2.9% | |||
$122,500,000 | United States Treasury Note, 4.125%, 11/15/2032 | 129,288,007 | |
10,000,000 | United States Treasury Note, 4.375%, 10/31/2024 | 9,994,721 | |
TOTAL U.S. TREASURIES (IDENTIFIED COST $135,625,673) | 139,282,728 | ||
CORPORATE BONDS— 0.9% | |||
Consumer Discretionary— 0.4% | |||
5,000,000 | Airbnb, Inc., Conv. Bond, 0.000%, 3/15/2026 | 4,425,785 | |
2,000,000 | Chegg, Inc., Conv. Bond, 0.125%, 3/15/2025 | 1,793,120 | |
5,000,000 | Mercadolibre, Inc., Sr. Unsecd. Note, 2.375%, 1/14/2026 | 4,542,105 | |
6,600,000 | NagaCorp Ltd., Sr. Unsecd. Note, 7.950%, 7/6/2024 | 6,187,500 | |
TOTAL | 16,948,510 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS— continued | |||
Financials— 0.0% | |||
$ 2,000,000 | PRA Group, Inc., Conv. Bond, 3.500%, 6/1/2023 | $ 1,992,820 | |
Health Care— 0.1% | |||
5,000,000 | Illumina, Inc., Conv. Bond, 0.000%, 8/15/2023 | 4,881,745 | |
2,000,000 | NuVasive, Inc., Conv. Bond, 1.000%, 6/1/2023 | 1,985,554 | |
TOTAL | 6,867,299 | ||
Industrials— 0.1% | |||
3,000,000 | Fiverr International Ltd., Conv. Bond, 0.000%, 11/1/2025 | 2,570,904 | |
Information Technology— 0.3% | |||
5,000,000 | DocuSign, Inc., Conv. Bond, 0.000%, 1/15/2024 | 4,784,070 | |
5,000,000 | Okta, Inc., Conv. Bond, 0.125%, 9/1/2025 | 4,496,610 | |
3,000,000 | RingCentral, Inc., Conv. Bond, 6.220%, 3/1/2025 | 2,673,234 | |
5,000,000 | Shopify, Inc., Conv. Bond, 0.125%, 11/1/2025 | 4,415,730 | |
TOTAL | 16,369,644 | ||
TOTAL CORPORATE BONDS (IDENTIFIED COST $44,176,447) | 44,749,177 | ||
PREFERRED STOCKS— 0.8% | |||
Financials— 0.1% | |||
100,000 | JPMorgan Chase & Co., 5.750% | 2,521,000 | |
100,000 | 2 | Wells Fargo & Co., 5.625% | 2,365,000 |
TOTAL | 4,886,000 | ||
Health Care— 0.4% | |||
1,903,967 | 3 | CeQur SA | 10,879,866 |
1,240,000 | 4 | Regulus Therapeutics, Inc. | 1,649,200 |
47,000 | 3 | Regulus Therapeutics, Inc. | 5,625,900 |
TOTAL | 18,154,966 | ||
Industrials— 0.2% | |||
400,000 | FTAI Aviation Ltd. | 9,508,000 | |
Information Technology— 0.0% | |||
679,348 | 1,3,4 | Multiplex, Inc., Pfd., Series C | 0 |
Real Estate— 0.1% | |||
100,000 | Public Storage, 4.000% | 1,870,000 | |
100,000 | Public Storage, 4.625% | 2,177,000 | |
46,398 | Rexford Industrial Realty, Inc., 5.875% | 1,118,192 | |
TOTAL | 5,165,192 | ||
Utilities— 0.0% | |||
50,000 | NextEra Energy, Inc., 6.219% | 2,454,000 | |
TOTAL PREFERRED STOCKS (IDENTIFIED COST $46,248,825) | 40,168,158 |
Shares or Principal Amount | Value | ||
1 | WARRANTS— 0.2% | ||
Health Care— 0.2% | |||
801,900 | Catabasis Pharmaceuticals, Inc., Warrants 6/22/2023 | $ 0 | |
421,550 | Catabasis Pharmaceuticals, Inc., Warrants 2/8/2024 | 37,518 | |
200,970 | Rezolute, Inc., Warrants 10/8/2027 | 119,376 | |
56,800 | Rezolute, Inc., Warrants 1/1/2099 | 118,428 | |
1,690,301 | Rezolute, Inc., Warrants 12/31/2099 | 3,524,278 | |
853,000 | Scynexis, Inc., Warrants 5/21/2024 | 419,079 | |
167,251 | Scynexis, Inc., Warrants 4/26/2029 | 414,247 | |
1,706,000 | Scynexis, Inc., Warrants 1/1/2099 | 5,373,900 | |
TOTAL WARRANTS (IDENTIFIED COST $17,450,880) | 10,006,826 | ||
INVESTMENT COMPANIES— 12.5% | |||
35,737,384 | Federated Hermes Government Obligations Fund, Premier Shares, 4.72%5 | 35,737,384 | |
569,661,503 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 4.87%5 | 569,604,537 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $605,035,042) | 605,341,921 | ||
TOTAL INVESTMENT IN SECURITIES—102.3% (IDENTIFIED COST $3,636,122,767)6 | 4,948,425,196 | ||
OTHER ASSETS AND LIABILITIES - NET—(2.3)%7 | (111,584,284) | ||
TOTAL NET ASSETS—100% | $4,836,840,912 |
Affiliated | Value as of 10/31/2022 | Purchases at Cost* | Proceeds from Sales* |
Health Care: | |||
Amphastar Pharmaceuticals, Inc. | $35,071,500 | $— | $— |
AnaptysBio, Inc.** | $32,248,588 | $— | $(21,015,502) |
Annexon, Inc. | $9,560,000 | $— | $— |
Arcturus Therapeutics Holdings, Inc. | $34,892,010 | $8,691,057 | $— |
aTyr Pharma, Inc. | $5,594,550 | $5,670,000 | $— |
Dynavax Technologies Corp. | $75,251,003 | $— | $— |
Fusion Pharmaceuticals, Inc. | $1,237,500 | $— | $— |
Fusion Pharmaceuticals, Inc. | $— | $4,556,000 | $— |
IDEAYA Biosciences, Inc. | $20,619,312 | $4,715,650 | $— |
Merus N.V. | $31,057,500 | $2,591,464 | $(14,480,549) |
Minerva Neurosciences, Inc. | $1,722,500 | $— | $— |
Regulus Therapeutics, Inc. | $1,922,000 | $— | $— |
Regulus Therapeutics, Inc. | $2,101,800 | $— | $— |
Regulus Therapeutics, Inc. | $— | $4,230,470 | $— |
Regulus Therapeutics, Inc. | $— | $454,550 | $— |
Rezolute, Inc. | $5,433,857 | $— | $— |
Rezolute, Inc., Warrants 10/8/2027 | $106,554 | $— | $— |
Rezolute, Inc., Warrants 1/1/2099 | $95,992 | $— | $— |
Rezolute, Inc., Warrants 12/31/2099 | $2,856,609 | $— | $— |
Rhythm Pharmaceuticals, Inc. | $96,828,990 | $— | $(44,270,290) |
Scynexis, Inc. | $3,557,400 | $— | $— |
Scynexis, Inc., Warrants 5/21/2024 | $136,395 | $— | $— |
Scynexis, Inc., Warrants 4/26/2029 | $241,193 | $— | $— |
Scynexis, Inc., Warrants 1/1/2099 | $3,940,860 | $— | $— |
Seres Therapeutics, Inc. | $106,231,400 | $— | $(8,034,707) |
Soteira, Inc. | $— | $— | $— |
Ultragenyx Pharmaceutical, Inc.** | $60,690,000 | $— | $(24,703,521) |
Affiliated issuers no longer in the portfolio at period end | $4,462,166 | $— | $(5,090,923) |
TOTAL OF AFFILIATED COMPANIES TRANSACTIONS | $535,859,679 | $30,909,191 | $(117,595,492) |
Change in Unrealized Appreciation/ Depreciation* | Net Realized Gain/ (Loss)* | Value as of 4/30/2023 | Shares Held as of 4/30/2023 | Dividend Income* |
$5,527,450 | $— | $40,598,950 | 1,135,000 | $— |
$(4,401,236) | $(2,198,838) | $4,633,012 | 222,527 | $— |
$1,050,000 | $— | $10,610,000 | 2,000,000 | $— |
$22,301,433 | $— | $65,884,500 | 2,475,000 | $— |
$(1,933,800) | $— | $9,330,750 | 4,785,000 | $— |
$(6,835,026) | $— | $68,415,977 | 6,572,140 | $— |
$687,500 | $— | $1,925,000 | 500,000 | $— |
$603,000 | $— | $5,159,000 | 1,340,000 | $— |
$1,611,320 | $— | $26,946,282 | 1,475,700 | $— |
$(1,391,247) | $(2,433,168) | $15,344,000 | 800,000 | $— |
$78,000 | $— | $1,800,500 | 650,000 | $— |
$(272,800) | $— | $1,649,200 | 1,240,000 | $— |
$(298,320) | $— | $1,803,480 | 1,356,000 | $— |
$1,395,430 | $— | $5,625,900 | 47,000 | $— |
$149,935 | $— | $604,485 | 505,000 | $— |
$1,270,043 | $— | $6,703,900 | 3,215,300 | $— |
$12,822 | $— | $119,376 | 200,970 | $— |
$22,436 | $— | $118,428 | 56,800 | $— |
$667,669 | $— | $3,524,278 | 1,690,301 | $— |
$(30,071,614) | $22,289,870 | $44,776,956 | 2,219,978 | $— |
$1,293,600 | $— | $4,851,000 | 1,540,000 | $— |
$282,684 | $— | $419,079 | 853,000 | $— |
$173,054 | $— | $414,247 | 167,251 | $— |
$1,433,040 | $— | $5,373,900 | 1,706,000 | $— |
$(44,089,644) | $(2,842,890) | $51,264,159 | 10,515,725 | $— |
$— | $— | $— | 959,018 | $— |
$6,740,923 | $(3,424,402) | $39,303,000 | 900,000 | $— |
$11,783,780 | $(11,155,023) | $— | — | $— |
$(32,209,568) | $235,549 | $417,199,359 | 49,127,710 | $— |
* | A portion of the amount shown may have been recorded when the Fund no longer had ownership of at least 5% of the voting shares. |
** | At April 30, 2023, the Fund no longer has ownership of at least 5% of the voting shares. |
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares* | Total of Affiliated Transactions | |
Value as of 10/31/2022 | $47,261,098 | $849,229,625 | $896,490,723 |
Purchases at Cost | $295,443,769 | $993,469,926 | $1,288,913,695 |
Proceeds from Sales | $(306,967,483) | $(1,273,557,236) | $(1,580,524,719) |
Change in Unrealized Appreciation/ Depreciation | $— | $350,118 | $350,118 |
Net Realized Gain/(Loss) | $— | $112,104 | $112,104 |
Value as of 4/30/2023 | $35,737,384 | $569,604,537 | $605,341,921 |
Shares Held as of 4/30/2023 | 35,737,384 | 569,661,503 | 605,398,887 |
Dividend Income | $795,923 | $15,661,622 | $16,457,545 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions. |
1 | Non-income-producing security. |
2 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. |
3 | Market quotations and price evaluations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established by and under the general supervision of the Fund’s Adviser acting through its Valuation Committee. |
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 April 30, 2023, these restricted securities amounted to $88,600,907, which represented 1.8% 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 April 30, 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 | $3,339,191,966 | $— | $10,436,752 | $3,349,628,718 |
International | 344,436,936 | 414,810,732 | — | 759,247,668 |
Preferred Stocks | ||||
Domestic | 23,662,392 | — | 5,625,900 | 29,288,292 |
International | — | — | 10,879,866 | 10,879,866 |
Debt Securities: | ||||
U.S. Treasuries | — | 139,282,728 | — | 139,282,728 |
Corporate Bonds | — | 44,749,177 | — | 44,749,177 |
Warrants | 3,642,706 | 6,364,120 | — | 10,006,826 |
Investment Companies | 605,341,921 | — | — | 605,341,921 |
TOTAL SECURITIES | $4,316,275,921 | $605,206,757 | $26,942,518 | $4,948,425,196 |
The following acronym(s) are used throughout this portfolio: | ||
ADR | —American Depositary Receipt | |
CVR | —Contingent Value Right |
Six Months Ended (unaudited) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $4.77 | $7.77 | $6.80 | $6.27 | $6.03 | $6.06 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | (0.00)2 | (0.06) | (0.10) | (0.09) | (0.05) | (0.06) |
Net realized and unrealized gain (loss) | 0.06 | (2.29) | 1.57 | 1.32 | 1.09 | 0.69 |
Total From Investment Operations | 0.06 | (2.35) | 1.47 | 1.23 | 1.04 | 0.63 |
Less Distributions: | ||||||
Distributions from net realized gain | — | (0.65) | (0.50) | (0.70) | (0.80) | (0.66) |
Net Asset Value, End of Period | $4.83 | $4.77 | $7.77 | $6.80 | $6.27 | $6.03 |
Total Return3 | 1.26% | (32.43)% | 22.37% | 21.52% | 19.52% | 11.64% |
Ratios to Average Net Assets: | ||||||
Net expenses4 | 1.95%5 | 1.95% | 1.92% | 1.94% | 1.95% | 1.95% |
Net investment income (loss) | (0.16)%5 | (1.09)% | (1.41)% | (1.38)% | (0.81)% | (1.02)% |
Expense waiver/ reimbursement6 | 0.02%5 | 0.03% | 0.04% | 0.03% | 0.03% | 0.03% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $1,125,475 | $1,196,453 | $2,023,577 | $1,808,715 | $1,629,524 | $1,491,496 |
Portfolio turnover7 | 32% | 25% | 34% | 38% | 42% | 33% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.001. |
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) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $3.43 | $5.81 | $5.22 | $4.99 | $4.99 | $5.14 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | (0.01) | (0.06) | (0.11) | (0.09) | (0.06) | (0.08) |
Net realized and unrealized gain (loss) | 0.04 | (1.67) | 1.20 | 1.02 | 0.86 | 0.59 |
Total From Investment Operations | 0.03 | (1.73) | 1.09 | 0.93 | 0.80 | 0.51 |
Less Distributions: | ||||||
Distributions from net realized gain | — | (0.65) | (0.50) | (0.70) | (0.80) | (0.66) |
Net Asset Value, End of Period | $3.46 | $3.43 | $5.81 | $5.22 | $4.99 | $4.99 |
Total Return2 | 0.87% | (32.74)% | 21.80% | 20.96% | 18.69% | 11.36% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 2.46%4 | 2.45% | 2.42% | 2.44% | 2.45% | 2.46% |
Net investment income (loss) | (0.65)%4 | (1.60)% | (1.92)% | (1.87)% | (1.31)% | (1.56)% |
Expense waiver/reimbursement5 | 0.02%4 | 0.03% | 0.04% | 0.03% | 0.03% | 0.03% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $56,158 | $64,766 | $139,690 | $141,074 | $135,883 | $144,284 |
Portfolio turnover6 | 32% | 25% | 34% | 38% | 42% | 33% |
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) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $4.79 | $7.79 | $6.82 | $6.28 | $6.04 | $6.07 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | (0.00)2 | (0.06) | (0.11) | (0.09) | (0.05) | (0.06) |
Net realized and unrealized gain (loss) | 0.05 | (2.29) | 1.58 | 1.33 | 1.09 | 0.69 |
Total From Investment Operations | 0.05 | (2.35) | 1.47 | 1.24 | 1.04 | 0.63 |
Less Distributions: | ||||||
Distributions from net realized gain | — | (0.65) | (0.50) | (0.70) | (0.80) | (0.66) |
Net Asset Value, End of Period | $4.84 | $4.79 | $7.79 | $6.82 | $6.28 | $6.04 |
Total Return3 | 1.04% | (32.34)% | 22.30% | 21.64% | 19.48% | 11.62% |
Ratios to Average Net Assets: | ||||||
Net expenses4 | 1.95%5 | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% |
Net investment income (loss) | (0.16)%5 | (1.10)% | (1.45)% | (1.40)% | (0.81)% | (1.03)% |
Expense waiver/ reimbursement6 | 0.27%5 | 0.27% | 0.25% | 0.25% | 0.26% | 0.27% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $3,287,581 | $3,428,775 | $5,582,064 | $4,848,579 | $4,313,852 | $3,877,851 |
Portfolio turnover7 | 32% | 25% | 34% | 38% | 42% | 33% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.001. |
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 (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) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $4.98 | $8.03 | $6.98 | $6.39 | $6.11 | $6.10 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.01 | (0.03) | (0.07) | (0.06) | (0.02) | (0.03) |
Net realized and unrealized gain (loss) | 0.06 | (2.37) | 1.62 | 1.35 | 1.10 | 0.70 |
Total From Investment Operations | 0.07 | (2.40) | 1.55 | 1.29 | 1.08 | 0.67 |
Less Distributions: | ||||||
Distributions from net realized gain | — | (0.65) | (0.50) | (0.70) | (0.80) | (0.66) |
Net Asset Value, End of Period | $5.05 | $4.98 | $8.03 | $6.98 | $6.39 | $6.11 |
Total Return2 | 1.41% | (31.97)% | 22.96% | 22.11% | 19.98% | 12.29% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.46%4 | 1.44% | 1.42% | 1.44% | 1.45% | 1.46% |
Net investment income (loss) | 0.33%4 | (0.60)% | (0.92)% | (0.89)% | (0.31)% | (0.52)% |
Expense waiver/reimbursement5 | 0.02%4 | 0.03% | 0.04% | 0.03% | 0.03% | 0.03% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $367,627 | $390,516 | $808,904 | $640,411 | $452,014 | $325,596 |
Portfolio turnover6 | 32% | 25% | 34% | 38% | 42% | 33% |
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. |
April 30, 2023 (unaudited)
Assets: | |
Investment in securities, at value including $100,424,935 of securities loaned and $1,022,541,280 of investments in affiliated holdings* (identified cost $3,636,122,767, including $1,104,880,658 of identified cost in affiliated holdings) | $4,948,425,196 |
Cash | 2,547 |
Cash denominated in foreign currencies (identified cost $51,904) | 51,624 |
Income receivable | 3,490,456 |
Income receivable from affiliated holdings | 1,980,603 |
Receivable for investments sold | 2,410,636 |
Receivable for shares sold | 428,629 |
Total Assets | 4,956,789,691 |
Liabilities: | |
Payable for investments purchased | 10,401,361 |
Payable for shares redeemed | 2,841,204 |
Payable for collateral due to broker for securities lending (Note 2) | 102,080,082 |
Payable for investment adviser fee (Note 5) | 499,490 |
Payable for administrative fee (Note 5) | 30,852 |
Payable for Directors’/Trustees’ fees (Note 5) | 4,378 |
Payable for distribution services fee (Note 5) | 920,606 |
Payable for other service fees (Notes 2 and 5) | 2,249,489 |
Accrued expenses (Note 5) | 921,317 |
Total Liabilities | 119,948,779 |
Net assets for 1,001,300,154 shares outstanding | $4,836,840,912 |
Net Assets Consist of: | |
Paid-in capital | $3,340,845,597 |
Total distributable earnings (loss) | 1,495,995,315 |
Total Net Assets | $4,836,840,912 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($1,125,475,295 ÷ 233,114,258 shares outstanding), no par value, unlimited shares authorized | $4.83 |
Offering price per share (100/94.50 of $4.83) | $5.11 |
Redemption proceeds per share | $4.83 |
Class C Shares: | |
Net asset value per share ($56,157,890 ÷ 16,221,393 shares outstanding), no par value, unlimited shares authorized | $3.46 |
Offering price per share | $3.46 |
Redemption proceeds per share (99.00/100 of $3.46) | $3.43 |
Class R Shares: | |
Net asset value per share ($3,287,581,215 ÷ 679,141,472 shares outstanding), no par value, unlimited shares authorized | $4.84 |
Offering price per share | $4.84 |
Redemption proceeds per share | $4.84 |
Institutional Shares: | |
Net asset value per share ($367,626,512 ÷ 72,823,031 shares outstanding), no par value, unlimited shares authorized | $5.05 |
Offering price per share | $5.05 |
Redemption proceeds per share | $5.05 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended April 30, 2023 (unaudited)
Investment Income: | |
Dividends (including $13,897,465 received from affiliated holdings* and net of foreign taxes withheld of $239,873) | $40,434,636 |
Interest | 2,948,426 |
Net income on securities loaned (includes $2,560,080 earned from affiliated holdings related to cash collateral balances) (Note 2) | 286,679 |
TOTAL INCOME | 43,669,741 |
Expenses: | |
Investment adviser fee (Note 5) | 31,063,660 |
Administrative fee (Note 5) | 1,906,243 |
Custodian fees | 209,609 |
Transfer agent fees (Note 2) | 2,351,035 |
Directors’/Trustees’ fees (Note 5) | 13,598 |
Auditing fees | 23,977 |
Legal fees | 7,290 |
Portfolio accounting fees | 106,100 |
Distribution services fee (Note 5) | 9,910,338 |
Other service fees (Notes 2 and 5) | 5,603,480 |
Share registration costs | 55,109 |
Printing and postage | 102,956 |
Miscellaneous (Note 5) | 29,888 |
TOTAL EXPENSES | 51,383,283 |
Waiver and Reimbursements: | |
Reimbursement of investment adviser fee (Note 5) | (365,299) |
Waiver of other operating expenses (Note 5) | (4,153,893) |
TOTAL WAIVER AND REIMBURSEMENTS | (4,519,192) |
Net expenses | 46,864,091 |
Net investment income (loss) | (3,194,350) |
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: | |
Net realized gain on investments (including net realized gain of $347,653 on sales of investments in affiliated holdings*) | $270,612,984 |
Net realized loss on foreign currency transactions | (355,474) |
Net change in unrealized appreciation of investments (including net change in unrealized depreciation of $(31,859,450) of investments in affiliated holdings*) | (214,986,895) |
Net change in unrealized appreciation/depreciation of translation of assets and liabilities in foreign currency | 29,685 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 55,300,300 |
Change in net assets resulting from operations | $52,105,950 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 4/30/2023 | Year Ended 10/31/2022 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment loss | $(3,194,350) | $(65,301,288) |
Net realized gain (loss) | 270,257,510 | (10,722,393) |
Net change in unrealized appreciation/depreciation | (214,957,210) | (2,610,836,461) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 52,105,950 | (2,686,860,142) |
Distributions to Shareholders: | ||
Class A Shares | — | (169,659,986) |
Class B Shares | — | (3,408,597) |
Class C Shares | — | (15,505,345) |
Class R Shares | — | (466,665,097) |
Institutional Shares | — | (64,883,150) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | — | (720,122,175) |
Share Transactions: | ||
Proceeds from sale of shares1 | 93,862,417 | 221,241,432 |
Net asset value of shares issued to shareholders in payment of distributions declared | — | 673,227,029 |
Cost of shares redeemed1 | (401,582,707) | (980,412,406) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (307,720,290) | (85,943,945) |
Change in net assets | (255,614,340) | (3,492,926,262) |
Net Assets: | ||
Beginning of period | 5,092,455,252 | 8,585,381,514 |
End of period | $4,836,840,912 | $5,092,455,252 |
1 | On February 3, 2023, Class B Shares were converted into Class A Shares. Within the Statement of Changes in Net Assets, the conversion from Class B Shares is within the Cost of shares redeemed and the conversion to Class A Shares is within Proceeds from sale of shares. |
Transfer Agent Fees Incurred | |
Class A Shares | $548,073 |
Class B Shares | 2,823 |
Class C Shares | 28,735 |
Class R Shares | 1,591,300 |
Institutional Shares | 180,104 |
TOTAL | $2,351,035 |
Other Service Fees Incurred | |
Class A Shares | $1,416,966 |
Class B Shares | 7,290 |
Class C Shares | 74,438 |
Class R Shares | 4,104,786 |
TOTAL | $5,603,480 |
Fair Value of Securities Loaned | Collateral Received |
$100,424,935 | $102,080,082 |
Security | Acquisition Date | Cost | Value |
Agnico Eagle Mines Ltd. | 12/28/2018 | $1,931,288 | $86,513,250 |
Apollo Investment Fund V | 5/18/2001 | $0 | $85,188 |
Expand Networks Ltd. | 9/22/2000 | $2,500,000 | $0 |
FA Private Equity Fund IV LP | 3/4/2002 | $0 | $89,360 |
Latin Healthcare Fund | 11/28/2000 | $0 | $263,909 |
Multiplex, Inc., Pfd., Series C | 2/22/2001 | $5,000,001 | $0 |
Regulus Therapeutics, Inc. | 11/24/2021 | $4,464,000 | $1,649,200 |
Sensable Technologies, Inc. | 10/15/2004 | $0 | $0 |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 6,965,526 | $22,770,198 | 11,778,642 | $66,443,588 |
Shares issued to shareholders in payment of distributions declared | — | — | 24,571,531 | 159,712,501 |
Conversion of Class B Shares to Class A Shares1 | 2,181,798 | 10,756,262 | — | — |
Shares redeemed | (26,614,026) | (115,955,509) | (46,267,489) | (246,619,737) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | (17,466,702) | $(82,429,049) | (9,917,316) | $(20,463,648) |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class B Shares: | Shares | Amount | Shares | Amount |
Shares sold | — | $10,756,262 | 35,296 | $142,413 |
Shares issued to shareholders in payment of distributions declared | — | — | 691,871 | 3,258,712 |
Conversion of Class B Shares to Class A Shares1 | (3,029,165) | (10,756,262) | — | — |
Shares redeemed | (440,530) | (12,256,741) | (2,603,391) | (10,390,549) |
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS | (3,469,695) | $(12,256,741) | (1,876,224) | $(6,989,424) |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 989,211 | $3,370,420 | 1,932,137 | $7,789,685 |
Shares issued to shareholders in payment of distributions declared | — | — | 3,146,586 | 14,788,954 |
Shares redeemed | (3,638,442) | (12,404,718) | (10,257,512) | (39,840,351) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (2,649,231) | $(9,034,298) | (5,178,789) | $(17,261,712) |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class R Shares: | Shares | Amount | Shares | Amount |
Shares sold | 3,140,683 | $14,933,758 | 9,866,978 | $54,978,935 |
Shares issued to shareholders in payment of distributions declared | — | — | 66,633,625 | 434,451,065 |
Shares redeemed | (40,220,655) | (191,288,096) | (77,124,359) | (417,451,381) |
NET CHANGE RESULTING FROM CLASS R SHARE TRANSACTIONS | (37,079,972) | $(176,354,338) | (623,756) | $71,978,619 |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 8,484,670 | $42,031,779 | 16,069,132 | $91,886,811 |
Shares issued to shareholders in payment of distributions declared | — | — | 9,039,377 | 61,015,797 |
Shares redeemed | (14,077,757) | (69,677,643) | (47,370,755) | (266,110,388) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (5,593,087) | $(27,645,864) | (22,262,246) | $(113,207,780) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (66,258,687) | $(307,720,290) | (39,858,331) | $(85,943,945) |
1 | On February 3, 2023, Class B Shares were converted into Class A Shares. Within the Statement of Changes in Net Assets, the conversion from Class B Shares is within the Cost of shares redeemed and the conversion to Class A Shares is within Proceeds from sale of shares. |
Short-Term | Long-Term | Total |
$— | $12,547,649 | $12,547,649 |
Assets Under Management | Investment Advisory Fee |
Up to $8 billion | 1.275% |
$8 billion - $9 billion | 1.255% |
$9 billion - $10 billion | 1.235% |
$10 billion - $12 billion | 1.215% |
Excess of $12 billion | 1.205% |
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 | 0.25% |
Class C Shares | 0.75% |
Class R Shares | 0.50% |
Distribution Services Fees Incurred | Distribution Services Fees Waived | |
Class A Shares | $1,419,942 | $(10,265) |
Class B Shares | 21,870 | — |
Class C Shares | 223,315 | — |
Class R Shares | 8,245,211 | (4,143,628) |
TOTAL | $9,910,338 | $(4,153,893) |
Purchases | $1,277,884,351 |
Sales | $1,248,428,144 |
Country | Percentage of Total Net Assets |
United States | 86.1% |
Netherlands | 5.4% |
Canada | 4.3% |
China | 1.3% |
Italy | 1.3% |
Denmark | 1.2% |
United Kingdom | 1.0% |
Switzerland | 0.7% |
Kampuchea, Democratic | 0.5% |
Brazil | 0.4% |
Costa Rica | 0.1% |
France | 0.0% |
Beginning Account Value 11/1/2022 | Ending Account Value 4/30/2023 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,012.60 | $9.73 |
Class C Shares | $1,000 | $1,008.70 | $12.25 |
Class R Shares | $1,000 | $1,010.40 | $9.72 |
Institutional Shares | $1,000 | $1,014.10 | $7.29 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,015.12 | $9.74 |
Class C Shares | $1,000 | $1,012.60 | $12.28 |
Class R Shares | $1,000 | $1,015.12 | $9.74 |
Institutional Shares | $1,000 | $1,017.55 | $7.30 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.95% |
Class C Shares | 2.46% |
Class R Shares | 1.95% |
Institutional Shares | 1.46% |
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 314172651
CUSIP 314172644
CUSIP 31421N873
Share Class | Ticker | A | KLCAX | C | KLCCX | R | KLCKX |
Institutional | KLCIX | R6 | KLCSX |
Federated Hermes Kaufmann Large Cap Fund
A Portfolio of Federated Hermes Equity Funds
Sector Composition | Percentage of Total Net Assets |
Health Care | 21.0% |
Information Technology | 19.3% |
Consumer Discretionary | 16.0% |
Financials | 10.8% |
Industrials | 8.2% |
Communication Services | 6.6% |
Consumer Staples | 3.5% |
Real Estate | 2.4% |
Energy | 2.4% |
Utilities | 1.7% |
Materials | 1.1% |
Cash Equivalents2 | 7.1% |
Other Assets and Liabilities—Net3 | (0.1)% |
TOTAL | 100% |
1 | Except for Cash Equivalents and Other Assets and Liabilities, sector classifications are based upon, and individual 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— 93.0% | |||
1 | Communication Services— 6.6% | ||
675,000 | Alphabet, Inc., Class A | $ 72,454,500 | |
300,000 | T-Mobile USA, Inc. | 43,170,000 | |
TOTAL | 115,624,500 | ||
Consumer Discretionary— 16.0% | |||
120,000 | 1 | Airbnb, Inc. | 14,360,400 |
714,500 | 1 | Amazon.com, Inc. | 75,344,025 |
17,600 | 1 | Chipotle Mexican Grill, Inc. | 36,390,112 |
51,900 | Home Depot, Inc. | 15,598,026 | |
164,600 | 1 | Las Vegas Sands Corp. | 10,509,710 |
106,700 | 1 | Lululemon Athletica, Inc. | 40,538,531 |
20 | 1,2 | New Cotai LLC/Capital | 0 |
358,000 | Nike, Inc., Class B | 45,365,760 | |
541,200 | TJX Cos., Inc. | 42,657,384 | |
TOTAL | 280,763,948 | ||
Consumer Staples— 3.5% | |||
105,700 | Costco Wholesale Corp. | 53,190,354 | |
30,000 | Estee Lauder Cos., Inc., Class A | 7,401,600 | |
TOTAL | 60,591,954 | ||
Energy— 2.4% | |||
857,900 | Schlumberger Ltd. | 42,337,365 | |
Financials— 10.8% | |||
55,700 | BlackRock, Inc. | 37,385,840 | |
250,000 | Charles Schwab Corp. | 13,060,000 | |
66,205 | London Stock Exchange Group PLC | 6,941,010 | |
50,000 | MSCI, Inc., Class A | 24,122,500 | |
154,400 | S&P Global, Inc. | 55,982,352 | |
225,000 | Visa, Inc., Class A | 52,364,250 | |
TOTAL | 189,855,952 | ||
Health Care— 21.0% | |||
178,700 | 1 | Argenx SE, ADR | 69,314,156 |
23,400 | AstraZeneca PLC | 3,443,261 | |
118,000 | Danaher Corp. | 27,955,380 | |
360,000 | 1 | Dexcom, Inc. | 43,682,400 |
100,000 | Eli Lilly & Co. | 39,586,000 | |
46,800 | 1 | Genmab A/S | 19,224,638 |
41,300 | 1 | IDEXX Laboratories, Inc. | 20,326,208 |
44,000 | 1 | Intuitive Surgical, Inc. | 13,253,680 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Health Care— continued | |||
31,952 | Lonza Group AG | $ 19,886,440 | |
152,100 | Novo Nordisk A/S | 25,373,021 | |
39,600 | 1 | Sarepta Therapeutics, Inc. | 4,861,692 |
34,000 | Stryker Corp. | 10,188,100 | |
14,800 | UnitedHealth Group, Inc. | 7,282,932 | |
84,000 | 1 | Veeva Systems, Inc. | 15,042,720 |
116,200 | 1 | Vertex Pharmaceuticals, Inc. | 39,592,826 |
62,000 | Zoetis, Inc. | 10,898,360 | |
TOTAL | 369,911,814 | ||
Industrials— 8.2% | |||
717,100 | 1 | CoStar Group, Inc. | 55,180,845 |
15,800 | Deere & Co. | 5,972,716 | |
132,400 | Eaton Corp. PLC | 22,126,688 | |
108,000 | Quanta Services, Inc. | 18,321,120 | |
195,500 | Trane Technologies PLC | 36,325,855 | |
35,600 | Union Pacific Corp. | 6,966,920 | |
TOTAL | 144,894,144 | ||
Information Technology— 19.3% | |||
354,300 | Apple, Inc. | 60,117,624 | |
115,000 | 1 | Crowdstrike Holdings, Inc. | 13,805,750 |
29,100 | 1 | Keysight Technologies, Inc. | 4,209,024 |
300,000 | Microsoft Corp. | 92,178,000 | |
57,000 | NVIDIA Corp. | 15,816,930 | |
113,000 | 1 | Palo Alto Networks, Inc. | 20,617,980 |
125,000 | 1 | ServiceNow, Inc. | 57,427,500 |
318,500 | 1 | Shopify, Inc. | 15,431,325 |
350,000 | 1 | Splunk, Inc. | 30,184,000 |
160,000 | 1 | Workday, Inc. | 29,782,400 |
TOTAL | 339,570,533 | ||
Materials— 1.1% | |||
37,000 | Ecolab, Inc. | 6,210,080 | |
57,300 | Sherwin-Williams Co. | 13,611,042 | |
TOTAL | 19,821,122 | ||
Real Estate— 2.4% | |||
170,700 | Crown Castle, Inc. | 21,011,463 | |
175,000 | ProLogis, Inc. | 21,918,750 | |
TOTAL | 42,930,213 | ||
Utilities— 1.7% | |||
378,600 | NextEra Energy, Inc. | 29,012,118 | |
TOTAL COMMON STOCKS (IDENTIFIED COST $845,139,272) | 1,635,313,663 |
Shares | Value | ||
INVESTMENT COMPANY— 7.1% | |||
124,195,901 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 4.87%3 (IDENTIFIED COST $124,177,587) | $124,183,481 | |
TOTAL INVESTMENT IN SECURITIES—100.1% (IDENTIFIED COST $969,316,859)4 | 1,759,497,144 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.1)%5 | (1,885,389) | ||
TOTAL NET ASSETS—100% | $1,757,611,755 |
Affiliated | Value as of 10/31/2022 | Purchases at Cost | Proceeds from Sales |
Affiliated issuers no longer in the portfolio at period end | $29,009,820 | $— | $(26,793,161) |
TOTAL OF AFFILIATED COMPANIES TRANSACTIONS | $29,009,820 | $— | $(26,793,161) |
Change in Unrealized Appreciation/ Depreciation | Net Realized Gain/ (Loss) | Value as of 4/30/2023 | Shares Held as of 4/30/2023 | Dividend Income |
$12,012,701 | $(14,229,360) | $— | — | $— |
$12,012,701 | $(14,229,360) | $— | — | $— |
Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | |
Value as of 10/31/2022 | $72,757,466 |
Purchases at Cost | $403,349,316 |
Proceeds from Sales | $(351,949,426) |
Change in Unrealized Appreciation/Depreciation | $1,557 |
Net Realized Gain/(Loss) | $24,568 |
Value as of 4/30/2023 | $124,183,481 |
Shares Held as of 4/30/2023 | 124,195,901 |
Dividend Income | $1,468,163 |
1 | Non-income-producing security. |
2 | Market quotations and price evaluations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established by and under the general supervision of the Fund’s Adviser acting through its Valuation Committee. |
3 | 7-day net yield. |
4 | Also represents cost of investments for federal tax purposes. |
5 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
The following is a summary of the inputs used, as of April 30, 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 | $1,374,909,904 | $— | $0 | $1,374,909,904 |
International | 185,535,389 | 74,868,370 | — | 260,403,759 |
Investment Company | 124,183,481 | — | — | 124,183,481 |
TOTAL SECURITIES | $1,684,628,774 | $74,868,370 | $0 | $1,759,497,144 |
The following acronym(s) are used throughout this portfolio: | ||
ADR | —American Depositary Receipt |
Six Months Ended (unaudited) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $24.12 | $39.89 | $31.46 | $27.39 | $24.76 | $23.38 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | (0.00)2 | (0.11) | (0.21) | (0.10) | (0.07) | (0.05) |
Net realized and unrealized gain (loss) | 1.20 | (10.54) | 9.88 | 5.42 | 5.17 | 1.77 |
Total From Investment Operations | 1.20 | (10.65) | 9.67 | 5.32 | 5.10 | 1.72 |
Less Distributions: | ||||||
Distributions from net realized gain | (5.29) | (5.12) | (1.24) | (1.25) | (2.47) | (0.34) |
Net Asset Value, End of Period | $20.03 | $24.12 | $39.89 | $31.46 | $27.39 | $24.76 |
Total Return3 | 6.09% | (30.10)% | 31.46% | 20.14% | 22.76% | 7.45% |
Ratios to Average Net Assets: | ||||||
Net expenses4 | 1.08%5 | 1.08% | 1.08% | 1.08% | 1.08% | 1.08% |
Net investment income (loss) | (0.05)%5 | (0.38)% | (0.57)% | (0.36)% | (0.29)% | (0.20)% |
Expense waiver/reimbursement6 | 0.12%5 | 0.10% | 0.08% | 0.09% | 0.10% | 0.11% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $518,017 | $598,065 | $953,814 | $741,584 | $616,124 | $539,812 |
Portfolio turnover7 | 9% | 15% | 28% | 24% | 19% | 35% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.001. |
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) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $20.66 | $35.18 | $28.08 | $24.76 | $22.77 | $21.69 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | (0.07) | (0.29) | (0.42) | (0.29) | (0.24) | (0.22) |
Net realized and unrealized gain (loss) | 1.00 | (9.11) | 8.76 | 4.86 | 4.70 | 1.64 |
Total From Investment Operations | 0.93 | (9.40) | 8.34 | 4.57 | 4.46 | 1.42 |
Less Distributions: | ||||||
Distributions from net realized gain | (5.29) | (5.12) | (1.24) | (1.25) | (2.47) | (0.34) |
Net Asset Value, End of Period | $16.30 | $20.66 | $35.18 | $28.08 | $24.76 | $22.77 |
Total Return2 | 5.72% | (30.66)% | 30.47% | 19.21% | 21.85% | 6.64% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.87%4 | 1.86% | 1.85% | 1.85% | 1.85% | 1.85% |
Net investment income (loss) | (0.82)%4 | (1.17)% | (1.33)% | (1.11)% | (1.05)% | (0.97)% |
Expense waiver/reimbursement5 | 0.11%4 | 0.09% | 0.08% | 0.09% | 0.09% | 0.09% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $125,001 | $167,622 | $355,877 | $372,382 | $399,208 | $387,474 |
Portfolio turnover6 | 9% | 15% | 28% | 24% | 19% | 35% |
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) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $22.20 | $37.27 | $29.58 | $25.92 | $23.64 | $22.42 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | (0.04) | (0.20) | (0.32) | (0.20) | (0.16) | (0.14) |
Net realized and unrealized gain (loss) | 1.09 | (9.75) | 9.25 | 5.11 | 4.91 | 1.70 |
Total From Investment Operations | 1.05 | (9.95) | 8.93 | 4.91 | 4.75 | 1.56 |
Less Distributions: | ||||||
Distributions from net realized gain | (5.29) | (5.12) | (1.24) | (1.25) | (2.47) | (0.34) |
Net Asset Value, End of Period | $17.96 | $22.20 | $37.27 | $29.58 | $25.92 | $23.64 |
Total Return2 | 5.90% | (30.38)% | 30.94% | 19.69% | 22.32% | 7.05% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.47%4 | 1.47% | 1.47% | 1.46% | 1.46% | 1.47% |
Net investment income (loss) | (0.45)%4 | (0.79)% | (0.95)% | (0.72)% | (0.65)% | (0.59)% |
Expense waiver/reimbursement5 | 0.17%4 | 0.16% | 0.13% | 0.14% | 0.14% | 0.14% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $42,148 | $42,626 | $82,883 | $76,374 | $74,919 | $70,350 |
Portfolio turnover6 | 9% | 15% | 28% | 24% | 19% | 35% |
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. |
Six Months Ended (unaudited) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $25.24 | $41.40 | $32.53 | $28.21 | $25.37 | $23.89 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.02 | (0.05) | (0.12) | (0.03) | (0.01) | 0.01 |
Net realized and unrealized gain (loss) | 1.28 | (10.99) | 10.23 | 5.60 | 5.32 | 1.81 |
Total From Investment Operations | 1.30 | (11.04) | 10.11 | 5.57 | 5.31 | 1.82 |
Less Distributions: | ||||||
Distributions from net realized gain | (5.29) | (5.12) | (1.24) | (1.25) | (2.47) | (0.34) |
Net Asset Value, End of Period | $21.25 | $25.24 | $41.40 | $32.53 | $28.21 | $25.37 |
Total Return2 | 6.24% | (29.93)% | 31.79% | 20.46% | 23.07% | 7.72% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 0.83%4 | 0.83% | 0.83% | 0.83% | 0.83% | 0.83% |
Net investment income (loss) | 0.22%4 | (0.15)% | (0.32)% | (0.10)% | (0.03)% | 0.05% |
Expense waiver/ reimbursement5 | 0.13%4 | 0.10% | 0.09% | 0.09% | 0.10% | 0.09% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $1,001,788 | $1,378,126 | $3,090,630 | $2,635,157 | $2,264,174 | $1,998,725 |
Portfolio turnover6 | 9% | 15% | 28% | 24% | 19% | 35% |
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. |
Six Months Ended (unaudited) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $25.41 | $41.62 | $32.68 | $28.32 | $25.44 | $23.94 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.03 | (0.03) | (0.10) | (0.02) | 0.01 | 0.03 |
Net realized and unrealized gain (loss) | 1.29 | (11.06) | 10.28 | 5.63 | 5.34 | 1.81 |
Total From Investment Operations | 1.32 | (11.09) | 10.18 | 5.61 | 5.35 | 1.84 |
Less Distributions: | ||||||
Distributions from net realized gain | (5.29) | (5.12) | (1.24) | (1.25) | (2.47) | (0.34) |
Net Asset Value, End of Period | $21.44 | $25.41 | $41.62 | $32.68 | $28.32 | $25.44 |
Total Return2 | 6.28% | (29.88)% | 31.86% | 20.52% | 23.17% | 7.79% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 0.77%4 | 0.77% | 0.77% | 0.77% | 0.77% | 0.77% |
Net investment income (loss) | 0.28%4 | (0.11)% | (0.26)% | (0.06)% | 0.04% | 0.11% |
Expense waiver/reimbursement5 | 0.10%4 | 0.09% | 0.08% | 0.09% | 0.09% | 0.09% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $70,657 | $102,255 | $274,128 | $228,285 | $129,987 | $154,136 |
Portfolio turnover6 | 9% | 15% | 28% | 24% | 19% | 35% |
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. |
April 30, 2023 (unaudited)
Assets: | |
Investment in securities, at value including $124,183,481 of investments in affiliated holdings* (identified cost $969,316,859, including $124,177,587 of identified cost in affiliated holdings) | $1,759,497,144 |
Cash denominated in foreign currencies (identified cost $3,812) | 3,975 |
Income receivable | 285,279 |
Income receivable from affiliated holdings | 444,572 |
Receivable for investments sold | 3,533,772 |
Receivable for shares sold | 394,738 |
Total Assets | 1,764,159,480 |
Liabilities: | |
Payable for investments purchased | 2,424,152 |
Payable for shares redeemed | 3,168,436 |
Payable for investment adviser fee (Note 5) | 93,540 |
Payable for administrative fee (Note 5) | 11,233 |
Payable for transfer agent fees | 361,801 |
Payable for Directors’/Trustees’ fees (Note 5) | 2,566 |
Payable for distribution services fee (Note 5) | 92,582 |
Payable for other service fees (Notes 2 and 5) | 232,798 |
Accrued expenses (Note 5) | 160,617 |
Total Liabilities | 6,547,725 |
Net assets for 86,309,403 shares outstanding | $1,757,611,755 |
Net Assets Consist of: | |
Paid-in capital | $683,588,629 |
Total distributable earnings (loss) | 1,074,023,126 |
Total Net Assets | $1,757,611,755 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($518,017,078 ÷ 25,857,289 shares outstanding), no par value, unlimited shares authorized | $20.03 |
Offering price per share (100/94.50 of $20.03) | $21.20 |
Redemption proceeds per share | $20.03 |
Class C Shares: | |
Net asset value per share ($125,001,230 ÷ 7,669,204 shares outstanding), no par value, unlimited shares authorized | $16.30 |
Offering price per share | $16.30 |
Redemption proceeds per share (99.00/100 of $16.30) | $16.14 |
Class R Shares: | |
Net asset value per share ($42,148,382 ÷ 2,346,235 shares outstanding), no par value, unlimited shares authorized | $17.96 |
Offering price per share | $17.96 |
Redemption proceeds per share | $17.96 |
Institutional Shares: | |
Net asset value per share ($1,001,788,470 ÷ 47,141,255 shares outstanding), no par value, unlimited shares authorized | $21.25 |
Offering price per share | $21.25 |
Redemption proceeds per share | $21.25 |
Class R6 Shares: | |
Net asset value per share ($70,656,595 ÷ 3,295,420 shares outstanding), no par value, unlimited shares authorized | $21.44 |
Offering price per share | $21.44 |
Redemption proceeds per share | $21.44 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended April 30, 2023 (unaudited)
Investment Income: | |
Dividends (including $1,468,163 received from affiliated holdings* and net of foreign taxes withheld of $26,853) | $9,818,362 |
Expenses: | |
Investment adviser fee (Note 5) | 7,016,367 |
Administrative fee (Note 5) | 731,965 |
Custodian fees | 42,186 |
Transfer agent fees (Note 2) | 940,999 |
Directors’/Trustees’ fees (Note 5) | 5,779 |
Auditing fees | 24,943 |
Legal fees | 6,154 |
Portfolio accounting fees | 105,301 |
Distribution services fee (Note 5) | 617,084 |
Other service fees (Notes 2 and 5) | 827,936 |
Share registration costs | 55,219 |
Printing and postage | 56,406 |
Miscellaneous (Note 5) | 23,051 |
TOTAL EXPENSES | 10,453,390 |
Waivers and Reimbursements: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (957,198) |
Waivers/reimbursements of other operating expenses (Notes 2 and 5) | (210,747) |
TOTAL WAIVERS AND REIMBURSEMENTS | (1,167,945) |
Net expenses | 9,285,445 |
Net investment income | 532,917 |
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: | |
Net realized gain on investments (including net realized loss of $(14,204,792) on sales of investments in affiliated holdings*) | 291,894,362 |
Net realized loss on foreign currency transactions | (98,230) |
Net change in unrealized appreciation of investments (including net change in unrealized depreciation of $12,014,258 of investments in affiliated holdings*) | (181,765,751) |
Net change in unrealized appreciation/depreciation of translation of assets and liabilities in foreign currency | 17,298 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 110,047,679 |
Change in net assets resulting from operations | $110,580,596 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 4/30/2023 | Year Ended 10/31/2022 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income (loss) | $532,917 | $(9,412,277) |
Net realized gain (loss) | 291,796,132 | 446,988,361 |
Net change in unrealized appreciation/depreciation | (181,748,453) | (1,730,754,030) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 110,580,596 | (1,293,177,946) |
Distributions to Shareholders: | ||
Class A Shares | (123,391,855) | (121,749,422) |
Class C Shares | (38,334,236) | (50,272,285) |
Class R Shares | (9,952,078) | (11,230,248) |
Institutional Shares | (253,861,751) | (377,610,464) |
Class R6 Shares | (18,104,427) | (33,771,223) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (443,644,347) | (594,633,642) |
Share Transactions: | ||
Proceeds from sale of shares | 151,156,074 | 416,142,661 |
Net asset value of shares issued to shareholders in payment of distributions declared | 403,488,933 | 542,130,665 |
Cost of shares redeemed | (752,664,426) | (1,539,098,342) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (198,019,419) | (580,825,016) |
Change in net assets | (531,083,170) | (2,468,636,604) |
Net Assets: | ||
Beginning of period | 2,288,694,925 | 4,757,331,529 |
End of period | $1,757,611,755 | $2,288,694,925 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $241,122 | $(44,510) |
Class C Shares | 81,141 | (4,552) |
Class R Shares | 56,551 | (2,919) |
Institutional Shares | 556,386 | (148,447) |
Class R6 Shares | 5,799 | — |
TOTAL | $940,999 | $(200,428) |
Other Service Fees Incurred | |
Class A Shares | $656,638 |
Class C Shares | 171,298 |
TOTAL | $827,936 |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,970,796 | $39,161,678 | 3,342,575 | $96,407,479 |
Shares issued to shareholders in payment of distributions declared | 5,892,565 | 112,312,298 | 3,353,287 | 109,987,824 |
Shares redeemed | (6,803,423) | (138,734,085) | (5,810,329) | (160,751,120) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 1,059,938 | $12,739,891 | 885,533 | $45,644,183 |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 325,597 | $5,228,040 | 477,833 | $12,096,961 |
Shares issued to shareholders in payment of distributions declared | 2,397,976 | 37,312,500 | 1,719,236 | 48,654,389 |
Shares redeemed | (3,167,314) | (54,207,119) | (4,201,135) | (102,244,358) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (443,741) | $(11,666,579) | (2,004,066) | $(41,493,008) |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class R Shares: | Shares | Amount | Shares | Amount |
Shares sold | 105,832 | $1,885,157 | 254,714 | $6,554,147 |
Shares issued to shareholders in payment of distributions declared | 573,056 | 9,810,727 | 366,917 | 11,117,577 |
Shares redeemed | (252,654) | (4,580,536) | (925,265) | (22,590,112) |
NET CHANGE RESULTING FROM CLASS R SHARE TRANSACTIONS | 426,234 | $7,115,348 | (303,634) | $(4,918,388) |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 4,446,349 | $94,825,478 | 8,238,017 | $249,396,256 |
Shares issued to shareholders in payment of distributions declared | 11,431,888 | 230,924,136 | 10,104,489 | 346,078,740 |
Shares redeemed | (23,342,004) | (513,165,665) | (38,391,765) | (1,116,533,204) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (7,463,767) | $(187,416,051) | (20,049,259) | $(521,058,208) |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 480,028 | $10,055,721 | 1,723,972 | $51,687,818 |
Shares issued to shareholders in payment of distributions declared | 644,223 | 13,129,272 | 762,976 | 26,292,135 |
Shares redeemed | (1,853,041) | (41,977,021) | (5,048,808) | (136,979,548) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | (728,790) | $(18,792,028) | (2,561,860) | $(58,999,595) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (7,150,126) | $(198,019,419) | (24,033,286) | $(580,825,016) |
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 | 0.25% |
Class C Shares | 0.75% |
Class R Shares | 0.50% |
Distribution Services Fees Incurred | Distribution Services Fees Waived | |
Class C Shares | $513,893 | $— |
Class R Shares | 103,191 | (10,319) |
TOTAL | $617,084 | $(10,319) |
Purchases | $157,168,616 |
Sales | $847,396,015 |
Beginning Account Value 11/1/2022 | Ending Account Value 4/30/2023 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,060.90 | $5.52 |
Class C Shares | $1,000 | $1,057.20 | $9.54 |
Class R Shares | $1,000 | $1,059.00 | $7.50 |
Institutional Shares | $1,000 | $1,062.40 | $4.24 |
Class R6 Shares | $1,000 | $1,062.80 | $3.94 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,019.44 | $5.41 |
Class C Shares | $1,000 | $1,015.52 | $9.35 |
Class R Shares | $1,000 | $1,017.50 | $7.35 |
Institutional Shares | $1,000 | $1,020.68 | $4.16 |
Class R6 Shares | $1,000 | $1,020.98 | $3.86 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.08% |
Class C Shares | 1.87% |
Class R Shares | 1.47% |
Institutional Shares | 0.83% |
Class R6 Shares | 0.77% |
Annual Evaluation of Adequacy and Effectiveness
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 314172438
CUSIP 314172420
CUSIP 314172412
CUSIP 314172131
Share Class | Ticker | A | FKASX | C | FKCSX | R | FKKSX |
Institutional | FKAIX | R6 | FKALX |
Federated Hermes Kaufmann Small Cap Fund
A Portfolio of Federated Hermes Equity Funds
Sector Composition | Percentage of Total Net Assets |
Health Care | 32.7 % |
Consumer Discretionary | 17.6% |
Information Technology | 11.5% |
Industrials | 9.0% |
Real Estate | 7.1 % |
Financials | 5.7% |
Materials | 3.3% |
Energy | 3.1% |
Consumer Staples | 1.8% |
Communication Services | 1.1% |
Securities Lending Collateral2 | 5.5% |
Cash Equivalents3 | 7.1% |
Other Assets and Liabilities—Net4 | (5.5)% |
TOTAL | 100% |
1 | Except for Securities Lending Collateral, 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 System (GICS), except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
2 | Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. |
3 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing cash collateral for securities lending. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares or Principal Amount | Value | ||
COMMON STOCKS— 91.8% | |||
Communication Services— 1.1% | |||
2,186,100 | Infrastrutture Wireless Italiane SPA | $ 30,401,420 | |
1,500,000 | 1 | Reservoir Media Management, Inc. | 9,960,000 |
980,100 | 1,2 | Tremor International Ltd., ADR | 5,606,172 |
TOTAL | 45,967,592 | ||
Consumer Discretionary— 17.3% | |||
991,300 | 2 | Academy Sports and Outdoors, Inc. | 62,967,376 |
745,000 | 1,2 | Bowlero Corp. | 10,899,350 |
100,000 | 1 | Bright Horizons Family Solutions, Inc. | 7,612,000 |
1,777,000 | 1 | Chicos Fas, Inc. | 8,956,080 |
540,000 | 2 | Choice Hotels International, Inc. | 68,860,800 |
4,000,000 | 1 | CTOS LLC | 25,120,000 |
734,720 | 1,2 | Custom Truck One Source, Inc. | 4,614,042 |
445,000 | 1,2 | Dutch Bros, Inc. | 13,861,750 |
245,000 | 1,2 | Etsy, Inc. | 24,752,350 |
1,225,000 | 1,2 | European Wax Center, Inc. | 23,079,000 |
1,580,300 | 1 | First Watch Restaurant Group, Inc. | 25,411,224 |
53,800 | 1 | Five Below, Inc. | 10,622,191 |
374,500 | 1,2 | Floor & Decor Holdings, Inc. | 37,202,830 |
548,800 | 1,2 | Lovesac Co./The | 14,427,952 |
950,000 | 1,2 | Mister Car Wash, Inc. | 8,379,000 |
271,200 | Moncler S.p.A. | 20,106,734 | |
33,804,200 | NagaCorp Ltd. | 27,365,337 | |
306,300 | 1 | National Vision Holdings, Inc. | 6,444,552 |
990,000 | 1 | Planet Fitness, Inc. | 82,308,600 |
615,122 | 1,2 | Revolve Group, Inc. | 12,702,269 |
500,000 | 1 | Six Flags Entertainment Corp. | 12,135,000 |
2,205,500 | 1,2 | Sportradar Group AG | 25,517,635 |
166,000 | Vail Resorts, Inc. | 39,926,320 | |
435,000 | Wingstop, Inc. | 87,047,850 | |
1,460,000 | 1 | Xponential Fitness, Inc. | 48,296,800 |
755,000 | 1,2 | YETI Holdings, Inc. | 29,784,750 |
TOTAL | 738,401,792 | ||
Consumer Staples— 1.8% | |||
670,700 | 1 | Chefs Warehouse, Inc. | 22,307,482 |
1,096,200 | 1 | Grocery Outlet Holding Corp. | 32,644,836 |
1,200,000 | 1 | The Duckhorn Portfolio, Inc. | 18,120,000 |
500,000 | 1 | Vital Farms, Inc. | 6,440,000 |
TOTAL | 79,512,318 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Energy— 3.1% | |||
542,400 | Cactus, Inc. | $ 21,956,352 | |
1,059,500 | Matador Resources Co. | 51,947,285 | |
1,895,000 | 2 | New Fortress Energy, Inc. | 57,399,550 |
TOTAL | 131,303,187 | ||
Financials— 5.7% | |||
625,000 | Ares Management Corp. | 54,743,750 | |
925,000 | Artisan Partners Asset Management, Inc. | 32,069,750 | |
1,889,026 | 1 | CrossFirst Bankshares, Inc. | 18,946,930 |
2,265,000 | FinecoBank Banca Fineco SPA | 34,297,825 | |
865,000 | Hamilton Lane, Inc. | 63,733,200 | |
3,181,933 | P10, Inc. | 32,869,368 | |
200,000 | 1,2 | Skyward Specialty Insurance Group, Inc. | 4,276,000 |
150,000 | StepStone Group, Inc. | 3,304,500 | |
TOTAL | 244,241,323 | ||
Health Care— 32.0% | |||
1,167,271 | 1,2 | 89Bio, Inc. | 18,652,991 |
58,000 | 1 | Akero Therapeutics, Inc. | 2,594,920 |
1,999,600 | 1 | Amphastar Pharmaceuticals, Inc. | 71,525,692 |
731,462 | 1 | Amylyx Pharmaceuticals, Inc. | 20,773,521 |
202,048 | 1,2 | AnaptysBio, Inc. | 4,206,639 |
1,000,000 | 1 | Annexon, Inc. | 5,305,000 |
133,000 | 1 | Apellis Pharmaceuticals, Inc. | 11,096,190 |
2,230,000 | 1 | Arcturus Therapeutics Holdings, Inc. | 59,362,600 |
425,914 | 1 | Argenx SE | 164,395,833 |
139,000 | 1 | Argenx SE, ADR | 53,915,320 |
5,264,000 | 1,3 | aTyr Pharma, Inc. | 10,264,800 |
293,000 | 1,2 | Century Therapeutics, Inc. | 917,090 |
338,980 | 1,3 | Century Therapeutics, Inc. | 1,061,007 |
850,000 | 1,2 | Cerevel Therapeutics Holdings | 24,684,000 |
120,000 | 1 | Charles River Laboratories International, Inc. | 22,814,400 |
692,000 | 1 | Chinook Therapeutics, Inc. | 13,846,920 |
190,200 | 1,3,4 | Clementia Pharmaceuticals, Inc., Rights | 0 |
1,950,000 | 1,2,4 | Contra Akouos, Inc., Rights | 1,540,500 |
308,000 | 1,2 | CRISPR Therapeutics AG | 15,073,520 |
364,570 | 1 | Cryoport, Inc. | 7,670,553 |
650,000 | 1 | Denali Therapeutics, Inc. | 16,146,000 |
358,220 | 1 | Dexcom, Inc. | 43,466,415 |
5,848,585 | 1,2 | Dynavax Technologies Corp. | 60,883,770 |
239,451 | 1 | EDAP TMS SA, ADR | 2,588,465 |
50,000 | 1 | Establishment Labs Holdings, Inc. | 3,484,500 |
750,000 | 1 | Evotec SE, ADR | 6,982,500 |
2,510,000 | 1,2,3 | Fusion Pharmaceuticals, Inc. | 9,663,500 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Health Care— continued | |||
1,245,600 | 1 | Fusion Pharmaceuticals, Inc. | $ 4,795,560 |
288,800 | 1 | Galapagos N.V. | 11,191,987 |
334,988 | 1,2 | Gracell Biotechnologies, Inc., ADR | 582,879 |
406,308 | 1,3 | Graphite Bio, Inc. | 1,296,123 |
285,800 | 1 | Guardant Health, Inc. | 6,447,648 |
1,870,000 | 1 | IDEAYA Biosciences, Inc. | 34,146,200 |
240,000 | 1 | Inspire Medical Systems, Inc. | 64,231,200 |
57,500 | 1 | Insulet Corp. | 18,287,300 |
1,000,000 | 1 | Intellia Therapeutics, Inc. | 37,750,000 |
750,000 | 1 | IVERIC Bio, Inc. | 24,667,500 |
188,702 | 1,3,4 | Laronde, Inc. | 4,092,022 |
1,009,200 | 1 | Legend Biotech Corp., ADR | 69,342,132 |
1,815,000 | 1,2 | Merus N.V. | 34,811,700 |
534,050 | 1,3 | Minerva Neurosciences, Inc. | 1,479,318 |
375,456 | 1,2 | Moonlake Immunotherapeutics | 7,997,213 |
535,000 | 1 | Morphic Holding, Inc. | 25,284,100 |
203,000 | 1 | Natera, Inc. | 10,296,160 |
66,090 | 1 | Orchard Therapeutics PLC, ADR | 317,893 |
250,000 | 1 | Outset Medical, Inc. | 4,497,500 |
100,000 | 1 | Penumbra, Inc. | 28,412,000 |
142,400 | 1 | Privia Health Group, Inc. | 3,934,512 |
229,325 | 1 | Prometheus Biosciences, Inc. | 44,477,584 |
5,761 | 1,2 | Protalix Biotherapeutics, Inc. | 16,016 |
1,378,500 | Regulus Therapeutics, Inc. | 1,833,405 | |
1,513,500 | 1 | Regulus Therapeutics, Inc. | 2,012,955 |
450,000 | 1,4 | Regulus Therapeutics, Inc. | 538,650 |
254,296 | 1,2 | Repligen Corp. | 38,558,902 |
3,310,800 | 1,3 | Rezolute, Inc. | 6,903,018 |
1,608,861 | 1 | Rhythm Pharmaceuticals, Inc. | 32,450,726 |
336,300 | 1 | Sarepta Therapeutics, Inc. | 41,287,551 |
3,593,000 | 1,2 | Scynexis, Inc. | 11,317,950 |
675,000 | 1,2 | Seres Therapeutics, Inc. | 3,290,625 |
500,000 | 1 | Structure Therapeutics, Inc., ADR | 12,525,000 |
199,272 | 1 | Tela Bio, Inc. | 1,873,157 |
850,000 | 1 | Ultragenyx Pharmaceutical, Inc. | 37,119,500 |
822,570 | 3,4 | United Therapeutics Corp. | 0 |
331,577 | 1 | Vaxcyte, Inc. | 14,201,443 |
148,800 | 1 | Veeva Systems, Inc. | 26,647,104 |
536,088 | 1 | Verona Pharma PLC, ADR | 11,231,044 |
1,124,000 | 1,2 | Verve Therapeutics, Inc. | 17,905,320 |
800,110 | 1 | Zentalis Pharmaceuticals, LLC | 17,626,423 |
TOTAL | 1,368,593,966 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Industrials— 8.9% | |||
205,000 | 2 | Advanced Drainage System, Inc. | $ 17,572,600 |
95,000 | Applied Industrial Technologies, Inc. | 12,887,700 | |
888,836 | 2 | Aris Water Solutions, Inc. | 6,461,838 |
221,100 | 1 | Chart Industries, Inc. | 29,428,410 |
336,000 | Comfort Systems USA, Inc. | 50,228,640 | |
452,000 | 1 | CoStar Group, Inc. | 34,781,400 |
737,900 | 1 | Evoqua Water Technologies Corp. | 36,489,155 |
210,000 | 1 | Fiverr International Ltd. | 7,669,200 |
387,500 | 1 | GMS, Inc. | 22,498,250 |
830,000 | 1 | GXO Logistics, Inc. | 44,097,900 |
420,419 | 1 | Mercury Systems, Inc. | 20,041,374 |
1,281,118 | 1 | Montrose Environmental Group, Inc. | 39,022,854 |
158,086 | 1 | MYR Group, Inc. | 20,233,427 |
290,000 | 1 | Trex Co., Inc. | 15,851,400 |
1,100,000 | 1 | Upwork, Inc. | 10,527,000 |
282,200 | 1 | XPO, Inc. | 12,467,596 |
TOTAL | 380,258,744 | ||
Information Technology— 11.5% | |||
1,438,110 | 1 | Allegro MicroSystems, Inc. | 51,441,195 |
1,025,000 | 1 | Alteryx, Inc. | 42,158,250 |
397,500 | 1 | Blackline, Inc. | 22,144,725 |
695,000 | 1 | Camtek Ltd. | 18,313,250 |
50,000 | 1 | Confluent, Inc. | 1,100,000 |
549,449 | 1 | Docebo, Inc. | 21,252,687 |
700,000 | 1 | Domo, Inc. | 11,116,000 |
350,000 | 1 | Envestnet, Inc. | 22,183,000 |
150,000 | 1 | Everbridge, Inc. | 3,942,000 |
300,000 | 1 | HashiCorp, Inc. | 8,043,000 |
379,000 | 1 | Novanta, Inc. | 57,926,360 |
425,000 | 1 | Okta, Inc. | 29,125,250 |
300,000 | 1 | Q2 Holdings, Inc. | 7,386,000 |
300,000 | 1 | Rapid7, Inc. | 14,583,000 |
225,000 | 1 | Rogers Corp. | 36,213,750 |
384,867,729 | 1,3 | Seeing Machines Ltd. | 28,315,749 |
343,000 | 1 | Shopify, Inc. | 16,618,350 |
800,000 | 1 | Smartsheet, Inc. | 32,696,000 |
1,285,000 | 1,3 | SoundThinking, Inc. | 38,228,750 |
70,000 | 1 | SPS Commerce, Inc. | 10,311,000 |
46,900 | 1 | Tyler Technologies, Inc. | 17,776,507 |
TOTAL | 490,874,823 | ||
Materials— 3.3% | |||
750,000 | 1 | Aspen Aerogels, Inc. | 4,695,000 |
Shares or Principal Amount | Value | ||
COMMON STOCKS— continued | |||
Materials— continued | |||
965,000 | 1,2 | ATI, Inc. | $ 37,268,300 |
1,750,000 | 1,2 | Livent Corp. | 38,237,500 |
263,000 | 2 | Scotts Miracle-Gro Co. | 17,571,030 |
1,350,000 | 1 | SilverCrest Metals, Inc. | 8,829,000 |
316,500 | Westlake Corp. | 36,011,370 | |
TOTAL | 142,612,200 | ||
Real Estate— 7.1% | |||
1,000,000 | Americold Realty Trust, Inc. | 29,590,000 | |
1,127,000 | 2 | Easterly Government Properties, Inc. | 15,856,890 |
770,000 | Gaming and Leisure Properties, Inc. | 40,040,000 | |
385,000 | 2 | Lamar Advertising Co. | 40,686,800 |
265,000 | National Storage Affiliates Trust | 10,215,750 | |
1,425,000 | Physicians Realty Trust | 20,548,500 | |
680,000 | Ryman Hospitality Properties, Inc. | 60,968,800 | |
1,130,000 | STAG Industrial, Inc. | 38,273,100 | |
1,375,000 | VICI Properties, Inc. | 46,667,500 | |
TOTAL | 302,847,340 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $2,881,564,535) | 3,924,613,285 | ||
CORPORATE BONDS— 0.5% | |||
Consumer Discretionary— 0.3% | |||
$ 15,000,000 | NagaCorp Ltd., Sr. Unsecd. Note, 7.950%, 7/6/2024 | 14,062,500 | |
Health Care— 0.1% | |||
3,000,000 | Cryoport, Inc., Conv. Bond, 0.750%, 12/1/2026 | 2,367,354 | |
Industrials— 0.1% | |||
3,000,000 | Fiverr International Ltd., Conv. Bond, 0.000%, 11/1/2025 | 2,570,904 | |
3,000,000 | Upwork, Inc., Conv. Bond, 0.250%, 8/15/2026 | 2,406,681 | |
TOTAL | 4,977,585 | ||
TOTAL CORPORATE BONDS (IDENTIFIED COST $21,397,867) | 21,407,439 | ||
PREFERRED STOCKS— 0.4% | |||
Health Care— 0.4% | |||
1,957,807 | 3,4 | CeQur SA | 11,187,525 |
41,900 | 4 | Regulus Therapeutics, Inc. | 5,015,430 |
TOTAL | 16,202,955 | ||
Real Estate— 0.0% | |||
25,000 | DigitalBridge Group, Inc., 7.125% | 518,500 | |
25,000 | DigitalBridge Group, Inc., 7.150% | 512,500 | |
25,000 | DigitalBridge Group, Inc., Pfd., 7.125% | 515,750 | |
TOTAL | 1,546,750 | ||
TOTAL PREFERRED STOCKS (IDENTIFIED COST $15,929,192) | 17,749,705 |
Shares or Principal Amount | Value | ||
1 | WARRANTS— 0.2% | ||
Health Care— 0.2% | |||
176,600 | Catabasis Pharmaceuticals, Inc., Warrants 6/22/2023 | $ 0 | |
129,500 | Catabasis Pharmaceuticals, Inc., Warrants 2/8/2024 | 11,526 | |
2,247,188 | ContraFect Corp., Warrants | 0 | |
200,000 | Immatics N.V., Warrants 12/31/2025 | 304,000 | |
193,334 | Rezolute, Inc., Warrants 10/8/2027 | 114,840 | |
64,800 | Rezolute, Inc., Warrants 1/1/2099 | 135,108 | |
1,685,800 | Rezolute, Inc., Warrants 12/31/2099 | 3,514,893 | |
720,500 | Scynexis, Inc., Warrants 5/21/2024 | 353,982 | |
165,355 | Scynexis, Inc., Warrants 4/26/2029 | 409,551 | |
1,441,000 | Scynexis, Inc., Warrants 1/1/2099 | 4,539,150 | |
TOTAL WARRANTS (IDENTIFIED COST $16,449,911) | 9,383,050 | ||
INVESTMENT COMPANIES— 12.6% | |||
56,970,354 | Federated Hermes Government Obligations Fund, Premier Shares, 4.72%5 | 56,970,354 | |
481,500,572 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 4.87%5 | 481,452,422 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $538,229,097) | 538,422,776 | ||
TOTAL INVESTMENT IN SECURITIES—105.5% (IDENTIFIED COST $3,473,570,602)6 | 4,511,576,255 | ||
OTHER ASSETS AND LIABILITIES - NET—(5.5)%7 | (233,708,780) | ||
TOTAL NET ASSETS—100% | $4,277,867,475 |
Affiliated | Value as of 10/31/2022 | Purchases at Cost* | Proceeds from Sales* |
Communication Services: | |||
Reservoir Media Management, Inc.** | $8,700,000 | $— | $— |
Consumer Discretionary: | |||
Xponential Fitness, Inc.** | $36,281,250 | $1,837,501 | $(13,849,047) |
Financials: | |||
P10, Inc. | $33,060,284 | $— | $— |
Health Care: | |||
Amphastar Pharmaceuticals, Inc. | $61,787,640 | $— | $— |
AnaptysBio, Inc.** | $34,211,195 | $— | $(23,070,638) |
Annexon, Inc. | $4,780,000 | $— | $— |
Arcturus Therapeutics Holdings, Inc. | $27,227,857 | $16,905,311 | $(4,932,122) |
aTyr Pharma, Inc. | $7,163,000 | $5,319,000 | $— |
ContraFect Corp., Warrants** | $19,101 | $— | $— |
Dynavax Technologies Corp. | $66,966,298 | $— | $— |
Fusion Pharmaceuticals, Inc. | $6,212,250 | $— | $— |
Fusion Pharmaceuticals, Inc. | $— | $4,235,040 | $— |
IDEAYA Biosciences, Inc. | $27,150,675 | $4,856,250 | $— |
Merus N.V. | $41,770,800 | $12,052,255 | $(13,655,326) |
Minerva Neurosciences, Inc. | $1,415,232 | $— | $— |
Regulus Therapeutics, Inc. | $2,136,675 | $— | $— |
Regulus Therapeutics, Inc. | $2,345,925 | $— | $— |
Regulus Therapeutics, Inc. | $— | $3,771,419 | $— |
Regulus Therapeutics, Inc. | $— | $405,045 | $— |
Rezolute, Inc. | $5,595,252 | $— | $— |
Rezolute, Inc., Warrants 10/8/2027 | $102,506 | $— | $— |
Rezolute, Inc., Warrants 1/1/2099 | $109,512 | $— | $— |
Rezolute, Inc., Warrants 12/31/2099 | $2,849,002 | $— | $— |
Rhythm Pharmaceuticals, Inc. | $59,083,454 | $— | $(21,350,968) |
Scynexis, Inc. | $8,299,830 | $— | $— |
Scynexis, Inc., Warrants 5/21/2024 | $115,208 | $— | $— |
Scynexis, Inc., Warrants 4/26/2029 | $238,458 | $— | $— |
Scynexis, Inc., Warrants 1/1/2099 | $3,328,710 | $— | $— |
Seres Therapeutics, Inc. | $53,160,000 | $— | $(29,423,130) |
Ultragenyx Pharmaceutical, Inc.** | $62,713,000 | $— | $(28,382,983) |
Industrials: | |||
Aris Water Solutions, Inc.** | $44,083,858 | $— | $(23,906,682) |
Information Technology: | |||
Seeing Machines Ltd. | $30,028,454 | $— | $(610,651) |
SoundThinking, Inc. | $50,163,800 | $977,302 | $(2,663,226) |
Affiliated issuers no longer in the portfolio at period end | $103,497,547 | $1,409,325 | $(121,648,908) |
TOTAL OF AFFILIATED COMPANIES TRANSACTIONS | $784,596,773 | $51,768,448 | $(283,493,681) |
Change in Unrealized Appreciation/ Depreciation* | Net Realized Gain/ (Loss)* | Value as of 4/30/2023 | Shares Held as of 4/30/2023 | Dividend Income* |
$1,260,000 | $— | $9,960,000 | 1,500,000 | $— |
$19,105,684 | $4,921,412 | $48,296,800 | 1,460,000 | $— |
$(190,916) | $— | $32,869,368 | 3,181,933 | $190,916 |
�� | ||||
$9,738,052 | $— | $71,525,692 | 1,999,600 | $— |
$(5,282,711) | $(1,651,207) | $4,206,639 | 202,048 | $— |
$525,000 | $— | $5,305,000 | 1,000,000 | $— |
$26,715,174 | $(6,553,620) | $59,362,600 | 2,230,000 | $— |
$(2,217,200) | $— | $10,264,800 | 5,264,000 | $— |
$(19,101) | $— | $— | 2,247,188 | $— |
$(6,082,528) | $— | $60,883,770 | 5,848,585 | $— |
$3,451,250 | $— | $9,663,500 | 2,510,000 | $— |
$560,520 | $— | $4,795,560 | 1,245,600 | $— |
$2,139,275 | $— | $34,146,200 | 1,870,000 | $— |
$866,832 | $(6,222,861) | $34,811,700 | 1,815,000 | $— |
$64,086 | $— | $1,479,318 | 534,050 | $— |
$(303,270) | $— | $1,833,405 | 1,378,500 | $— |
$(332,970) | $— | $2,012,955 | 1,513,500 | $— |
$1,244,011 | $— | $5,015,430 | 41,900 | $— |
$133,605 | $— | $538,650 | 450,000 | $— |
$1,307,766 | $— | $6,903,018 | 3,310,800 | $— |
$12,334 | $— | $114,840 | 193,334 | $— |
$25,596 | $— | $135,108 | 64,800 | $— |
$665,891 | $— | $3,514,893 | 1,685,800 | $— |
$(8,193,217) | $2,911,457 | $32,450,726 | 1,608,861 | $— |
$3,018,120 | $— | $11,317,950 | 3,593,000 | $— |
$238,774 | $— | $353,982 | 720,500 | $— |
$171,093 | $— | $409,551 | 165,355 | $— |
$1,210,440 | $— | $4,539,150 | 1,441,000 | $— |
$(27,749,864) | $7,303,619 | $3,290,625 | 675,000 | $— |
$23,779,711 | $(20,990,228) | $37,119,500 | 850,000 | $— |
$(11,721,944) | $(1,993,394) | $6,461,838 | 888,836 | $314,865 |
$(736,690) | $(365,364) | $28,315,749 | 384,867,729 | $— |
$(9,704,508) | $(544,618) | $38,228,750 | 1,285,000 | $— |
$54,879,557 | $(38,137,521) | $— | — | $— |
$78,577,852 | $(61,322,325) | $570,127,067 | 437,641,919 | $505,781 |
* | A portion of the amount shown may have been recorded when the Fund no longer had ownership of at least 5% of the voting shares. |
** | At April 30, 2023, the Fund no longer has ownership of at least 5% of the voting shares. |
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares* | Total of Affiliated Transactions | |
Value as of 10/31/2022 | $54,752,001 | $539,478,128 | $594,230,129 |
Purchases at Cost | $243,124,172 | $848,833,835 | $1,091,958,007 |
Proceeds from Sales | $(240,905,819) | $(907,126,154) | $(1,148,031,973) |
Change in Unrealized Appreciation/ Depreciation | $— | $210,151 | $210,151 |
Net Realized Gain/(Loss) | $— | $56,462 | $56,462 |
Value as of 4/30/2023 | $56,970,354 | $481,452,422 | $538,422,776 |
Shares Held as of 4/30/2023 | 56,970,354 | 481,500,572 | 538,470,926 |
Dividend Income | $876,787 | $10,147,816 | $11,024,603 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions. |
1 | Non-income-producing security. |
2 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. |
3 | Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or availing of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At April 30, 2023, these restricted securities amounted to $112,491,812, which represented 2.6% of total net assets. |
4 | Market quotations and price valuations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established by and under the general supervision of the Fund’s Adviser acting through its Valuation Committee. |
5 | 7-day net yield. |
6 | The cost of investments for federal tax purposes amounts to $3,472,919,899. |
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 April 30, 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 | $3,212,118,908 | $— | $6,171,172 | $3,218,290,080 |
International | 390,248,320 | 316,074,885 | — | 706,323,205 |
Preferred Stocks | ||||
International | — | — | 11,187,525 | 11,187,525 |
Domestic | 1,546,750 | — | 5,015,430 | 6,562,180 |
Debt Securities: | ||||
Corporate Bonds | — | 21,407,439 | — | 21,407,439 |
Warrants | 3,954,001 | 5,429,049 | — | 9,383,050 |
Investment Companies | 538,422,776 | — | — | 538,422,776 |
TOTAL SECURITIES | $4,146,290,755 | $342,911,373 | $22,374,127 | $4,511,576,255 |
The following acronym(s) are used throughout this portfolio: | ||
ADR | —American Depositary Receipt | |
PLC | —Public Limited Company |
Six Months Ended (unaudited) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $41.14 | $70.27 | $49.86 | $40.09 | $36.01 | $32.58 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | (0.02) | (0.23) | (0.58) | (0.29) | 0.01 | (0.13) |
Net realized and unrealized gain (loss) | 1.14 | (23.97) | 21.07 | 10.16 | 6.14 | 5.65 |
Total From Investment Operations | 1.12 | (24.20) | 20.49 | 9.87 | 6.15 | 5.52 |
Less Distributions: | ||||||
Distributions from net investment income | — | — | — | (0.02) | — | — |
Distributions from net realized gain | — | (4.93) | (0.08) | (0.08) | (2.07) | (2.09) |
Total Distributions | — | (4.93) | (0.08) | (0.10) | (2.07) | (2.09) |
Net Asset Value, End of Period | $42.26 | $41.14 | $70.27 | $49.86 | $40.09 | $36.01 |
Total Return2 | 2.72% | (36.41)% | 41.12% | 24.64% | 17.96% | 18.10% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.35%4 | 1.35% | 1.35% | 1.35% | 1.36% | 1.35% |
Net investment income (loss) | (0.08)%4 | (0.48)% | (0.89)% | (0.64)% | 0.03% | (0.37)% |
Expense waiver/reimbursement5 | 0.15%4 | 0.15% | 0.12% | 0.15% | 0.16% | 0.17% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $768,740 | $795,872 | $1,452,855 | $1,068,689 | $826,240 | $580,003 |
Portfolio turnover6 | 16% | 19% | 34% | 20% | 33% | 39% |
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) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $33.68 | $58.87 | $42.03 | $34.01 | $31.03 | $28.53 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | (0.12) | (0.44) | (0.83) | (0.49) | (0.19) | (0.31) |
Net realized and unrealized gain (loss) | 0.92 | (19.82) | 17.75 | 8.59 | 5.24 | 4.90 |
Total From Investment Operations | 0.80 | (20.26) | 16.92 | 8.10 | 5.05 | 4.59 |
Less Distributions: | ||||||
Distributions from net realized gain | — | (4.93) | (0.08) | (0.08) | (2.07) | (2.09) |
Net Asset Value, End of Period | $34.48 | $33.68 | $58.87 | $42.03 | $34.01 | $31.03 |
Total Return2 | 2.41% | (36.80)% | 40.28% | 23.84% | 17.25% | 17.36% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 2.00%4 | 1.98% | 1.97% | 1.98% | 1.97% | 1.97% |
Net investment income (loss) | (0.71)%4 | (1.11)% | (1.51)% | (1.28)% | (0.57)% | (1.00)% |
Expense waiver/reimbursement5 | 0.03%4 | 0.03% | 0.02% | 0.04% | 0.05% | 0.07% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $193,695 | $208,954 | $410,961 | $289,794 | $204,247 | $117,888 |
Portfolio turnover6 | 16% | 19% | 34% | 20% | 33% | 39% |
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) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $41.39 | $70.65 | $50.12 | $40.29 | $36.17 | $32.70 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | (0.01) | (0.22) | (0.57) | (0.28) | 0.03 | (0.12) |
Net realized and unrealized gain (loss) | 1.14 | (24.11) | 21.18 | 10.22 | 6.16 | 5.68 |
Total From Investment Operations | 1.13 | (24.33) | 20.61 | 9.94 | 6.19 | 5.56 |
Less Distributions: | ||||||
Distributions from net investment income | — | — | — | (0.03) | — | — |
Distributions from net realized gain | — | (4.93) | (0.08) | (0.08) | (2.07) | (2.09) |
Total Distributions | — | (4.93) | (0.08) | (0.11) | (2.07) | (2.09) |
Net Asset Value, End of Period | $42.52 | $41.39 | $70.65 | $50.12 | $40.29 | $36.17 |
Total Return2 | 2.73% | (36.40)% | 41.14% | 24.71% | 17.99% | 18.15% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.35%4 | 1.34% | 1.34% | 1.31% | 1.31% | 1.32% |
Net investment income (loss) | (0.06)%4 | (0.46)% | (0.87)% | (0.61)% | 0.08% | (0.33)% |
Expense waiver/reimbursement5 | 0.33%4 | 0.34% | 0.32% | 0.34% | 0.34% | 0.37% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $129,805 | $141,312 | $263,675 | $188,549 | $120,487 | $78,387 |
Portfolio turnover6 | 16% | 19% | 34% | 20% | 33% | 39% |
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. |
Six Months Ended (unaudited) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $42.49 | $72.07 | $50.90 | $40.86 | $36.50 | $32.85 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.08 | (0.01) | (0.29) | (0.10) | 0.22 | 0.04 |
Net realized and unrealized gain (loss) | 1.17 | (24.64) | 21.54 | 10.37 | 6.21 | 5.70 |
Total From Investment Operations | 1.25 | (24.65) | 21.25 | 10.27 | 6.43 | 5.74 |
Less Distributions: | ||||||
Distributions from net investment income | — | — | — | (0.15) | — | — |
Distributions from net realized gain | — | (4.93) | (0.08) | (0.08) | (2.07) | (2.09) |
Total Distributions | — | (4.93) | (0.08) | (0.23) | (2.07) | (2.09) |
Net Asset Value, End of Period | $43.74 | $42.49 | $72.07 | $50.90 | $40.86 | $36.50 |
Total Return2 | 2.97% | (36.10)% | 41.77% | 25.20% | 18.51% | 18.65% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 0.89%4 | 0.89% | 0.89% | 0.89% | 0.90% | 0.89% |
Net investment income (loss) | 0.39%4 | (0.02)% | (0.43)% | (0.21)% | 0.56% | 0.11% |
Expense waiver/reimbursement5 | 0.13%4 | 0.11% | 0.10% | 0.12% | 0.12% | 0.12% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $2,567,821 | $2,930,184 | $6,454,097 | $5,114,974 | $2,339,131 | $735,235 |
Portfolio turnover6 | 16% | 19% | 34% | 20% | 33% | 39% |
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. |
Six Months Ended (unaudited) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $42.14 | $71.52 | $50.51 | $40.51 | $36.20 | $32.60 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.08 | (0.00) | (0.29) | (0.10) | 0.25 | 0.06 |
Net realized and unrealized gain (loss) | 1.16 | (24.45) | 21.38 | 10.30 | 6.13 | 5.63 |
Total From Investment Operations | 1.24 | (24.45) | 21.09 | 10.20 | 6.38 | 5.69 |
Less Distributions: | ||||||
Distributions from net investment income | — | — | — | (0.12) | — | — |
Distributions from net realized gain | — | (4.93) | (0.08) | (0.08) | (2.07) | (2.09) |
Total Distributions | — | (4.93) | (0.08) | (0.20) | (2.07) | (2.09) |
Net Asset Value, End of Period | $43.38 | $42.14 | $71.52 | $50.51 | $40.51 | $36.20 |
Total Return2 | 2.94% | (36.10)% | 41.78% | 25.24% | 18.53% | 18.64% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 0.88%4 | 0.88% | 0.88% | 0.88% | 0.88% | 0.88% |
Net investment income (loss) | 0.39%4 | (0.01)% | (0.43)% | (0.21)% | 0.63% | 0.16% |
Expense waiver/reimbursement5 | 0.03%4 | 0.04% | 0.02% | 0.04% | 0.04% | 0.07% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $617,806 | $661,748 | $1,195,120 | $651,978 | $195,775 | $29,623 |
Portfolio turnover6 | 16% | 19% | 34% | 20% | 33% | 39% |
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. |
April 30, 2023 (unaudited)
Assets: | |
Investment in securities, at value including $231,244,101 of securities loaned and $1,108,549,843 of investments in affiliated holdings* (identified cost $3,473,570,602, including $1,097,495,121 of identified cost in affiliated holdings) | $4,511,576,255 |
Cash denominated in foreign currencies (identified cost $159,104) | 150,937 |
Income receivable | 1,071,537 |
Income receivable from affiliated holdings | 1,148,117 |
Receivable for investments sold | 24,914,213 |
Receivable for shares sold | 2,348,191 |
Total Assets | 4,541,209,250 |
Liabilities: | |
Payable for investments purchased | 20,773,733 |
Payable for shares redeemed | 5,288,338 |
Payable for collateral due to broker for securities lending (Note 2) | 235,304,712 |
Payable for investment adviser fee (Note 5) | 268,179 |
Payable for administrative fee (Note 5) | 27,268 |
Payable for Directors’/Trustees’ fees (Note 5) | 5,221 |
Payable for distribution services fee (Note 5) | 266,633 |
Payable for other service fees (Notes 2 and 5) | 350,436 |
Accrued expenses (Note 5) | 1,057,255 |
Total Liabilities | 263,341,775 |
Net assets for 99,807,727 shares outstanding | $4,277,867,475 |
Net Assets Consist of: | |
Paid-in capital | $3,243,172,155 |
Total distributable earnings (loss) | 1,034,695,320 |
Total Net Assets | $4,277,867,475 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($768,740,405 ÷ 18,190,063 shares outstanding), no par value, unlimited shares authorized | $42.26 |
Offering price per share (100/94.50 of $42.26) | $44.72 |
Redemption proceeds per share | $42.26 |
Class C Shares: | |
Net asset value per share ($193,694,986 ÷ 5,617,433 shares outstanding), no par value, unlimited shares authorized | $34.48 |
Offering price per share | $34.48 |
Redemption proceeds per share (99.00/100 of $34.48) | $34.14 |
Class R Shares: | |
Net asset value per share ($129,805,414 ÷ 3,052,787 shares outstanding), no par value, unlimited shares authorized | $42.52 |
Offering price per share | $42.52 |
Redemption proceeds per share | $42.52 |
Institutional Shares: | |
Net asset value per share ($2,567,821,015 ÷ 58,706,983 shares outstanding), no par value, unlimited shares authorized | $43.74 |
Offering price per share | $43.74 |
Redemption proceeds per share | $43.74 |
Class R6 Shares: | |
Net asset value per share ($617,805,655 ÷ 14,240,461 shares outstanding), no par value, unlimited shares authorized | $43.38 |
Offering price per share | $43.38 |
Redemption proceeds per share | $43.38 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended April 30, 2023 (unaudited)
Investment Income: | |
Dividends (including $8,510,898 received from affiliated companies and affiliated holdings*) | $26,933,374 |
Interest | 1,000,526 |
Net income on securities loaned (includes $3,019,486 earned from affiliated holdings related to cash collateral balances) (Note 2) | 563,326 |
TOTAL INCOME | 28,497,226 |
Expenses: | |
Investment adviser fee (Note 5) | 17,769,556 |
Administrative fee (Note 5) | 1,738,180 |
Custodian fees | 111,461 |
Transfer agent fees (Note 2) | 2,393,655 |
Directors’/Trustees’ fees (Note 5) | 11,705 |
Auditing fees | 25,689 |
Legal fees | 7,243 |
Portfolio accounting fees | 111,205 |
Distribution services fee (Note 5) | 2,067,062 |
Other service fees (Notes 2 and 5) | 1,220,276 |
Share registration costs | 66,146 |
Printing and postage | 172,988 |
Miscellaneous (Note 5) | 32,701 |
TOTAL EXPENSES | 25,727,867 |
Waivers and Reimbursements: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (754,998) |
Waivers/reimbursements of other operating expenses (Notes 2 and 5) | (1,922,769) |
TOTAL WAIVERS AND REIMBURSEMENTS | (2,677,767) |
Net expenses | 23,050,100 |
Net investment income | 5,447,126 |
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: | |
Net realized gain on investments (including net realized loss of $(61,265,863) on sales of investments in affiliated holdings*) | $47,986,267 |
Net realized loss on foreign currency transactions | (3,653) |
Net change in unrealized appreciation of investments (including net change in unrealized depreciation of $78,788,002 of investments in affiliated holdings*) | 66,753,042 |
Net change in unrealized appreciation/depreciation of translation of assets and liabilities in foreign currency | 43,060 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 114,778,716 |
Change in net assets resulting from operations | $120,225,842 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 4/30/2023 | Year Ended 10/31/2022 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income (loss) | $5,447,126 | $(9,505,393) |
Net realized gain (loss) | 47,982,614 | (32,854,574) |
Net change in unrealized appreciation/depreciation | 66,796,102 | (3,281,653,435) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 120,225,842 | (3,324,013,402) |
Distributions to Shareholders: | ||
Class A Shares | — | (101,147,716) |
Class B Shares1 | — | (1,197,159) |
Class C Shares | — | (34,090,746) |
Class R Shares | — | (18,092,847) |
Institutional Shares | — | (432,690,042) |
Class R6 Shares | — | (82,470,909) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | — | (669,689,419) |
Share Transactions: | ||
Proceeds from sale of shares | 370,291,321 | 1,065,820,914 |
Net asset value of shares issued to shareholders in payment of distributions declared | — | 632,723,892 |
Cost of shares redeemed | (956,233,268) | (2,752,467,125) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (585,941,947) | (1,053,922,319) |
Change in net assets | (465,716,105) | (5,047,625,140) |
Net Assets: | ||
Beginning of period | 4,743,583,580 | 9,791,208,720 |
End of period | $4,277,867,475 | $4,743,583,580 |
1 | On February 3, 2023, Class B Shares were converted into Class A Shares. |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $407,271 | $(263,801) |
Class B Shares | 2,171 | (341) |
Class C Shares | 127,238 | — |
Class R Shares | 189,637 | — |
Institutional Shares | 1,617,147 | (1,260,500) |
Class R6 Shares | 50,191 | — |
TOTAL | $2,393,655 | $(1,524,642) |
Other Service Fees Incurred | |
Class A Shares | $968,101 |
Class B Shares | 3,538 |
Class C Shares | 248,637 |
TOTAL | $1,220,276 |
Fair Value of Securities Loaned | Collateral Received |
$231,244,101 | $235,304,712 |
Security | Acquisition Date | Cost | Value |
aTyr Pharma, Inc. | 4/10/2019 | $4,000,000 | $10,264,800 |
Century Therapeutics, Inc. | 2/25/2021 | $5,520,027 | $1,061,007 |
CeQur SA | 3/26/2021 | $10,654,733 | $11,187,525 |
Clementia Pharmaceuticals, Inc., Rights | 4/18/2019 | $256,770 | $0 |
Fusion Pharmaceuticals, Inc. | 6/26/2020 | $576,100 | $9,663,500 |
Graphite Bio, Inc. | 3/11/2021 | $4,999,999 | $1,296,123 |
Laronde, Inc. | 7/28/2021 | $5,283,656 | $4,092,022 |
Minerva Neurosciences, Inc. | 12/3/2014 | $37,672 | $1,479,318 |
Rezolute, Inc. | 10/9/2020 | $9,666,690 | $6,903,018 |
Seeing Machines Ltd. | 10/22/2020 | $19,943,512 | $28,315,749 |
SoundThinking, Inc. | 7/12/2017 | $990,000 | $38,228,750 |
United Therapeutics Corp. | 8/31/2018 | $217,981 | $0 |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 679,264 | $28,227,784 | 1,530,260 | $73,184,961 |
Shares issued to shareholders in payment of distributions declared | — | — | 1,674,041 | 95,688,203 |
Conversion of Class B Shares to Class A Shares1 | 125,602 | 5,626,994 | — | — |
Shares redeemed | (1,958,712) | (81,403,650) | (4,535,857) | (214,855,756) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | (1,153,846) | $(47,548,872) | (1,331,556) | $(45,982,592) |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class B Shares: | Shares | Amount | Shares | Amount |
Shares sold | 3 | $102 | 1,017 | $39,776 |
Shares issued to shareholders in payment of distributions declared | — | — | 25,149 | 1,183,010 |
Conversion of Class B Shares to Class A Shares1 | (153,756) | (5,626,994) | — | — |
Shares redeemed | (10,024) | (334,282) | (108,817) | (4,175,494) |
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS | (163,777) | $(5,961,174) | (82,651) | $(2,952,708) |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 212,316 | $7,210,765 | 415,804 | $16,186,192 |
Shares issued to shareholders in payment of distributions declared | — | — | 703,297 | 33,090,127 |
Shares redeemed | (799,769) | (26,941,431) | (1,895,545) | (72,415,703) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (587,453) | $(19,730,666) | (776,444) | $(23,139,384) |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class R Shares: | Shares | Amount | Shares | Amount |
Shares sold | 139,629 | $5,883,469 | 335,394 | $16,171,089 |
Shares issued to shareholders in payment of distributions declared | — | — | 314,493 | 18,083,325 |
Shares redeemed | (500,701) | (20,996,873) | (968,244) | (45,767,933) |
NET CHANGE RESULTING FROM CLASS R SHARE TRANSACTIONS | (361,072) | $(15,113,404) | (318,357) | $(11,513,519) |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 6,364,827 | $274,734,565 | 16,251,449 | $775,568,956 |
Shares issued to shareholders in payment of distributions declared | — | — | 6,963,343 | 409,305,296 |
Shares redeemed | (16,627,347) | (710,519,288) | (43,798,331) | (2,126,528,197) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (10,262,520) | $(435,784,723) | (20,583,539) | $(941,653,945) |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,137,601 | $48,607,642 | 3,869,658 | $184,669,940 |
Shares issued to shareholders in payment of distributions declared | — | — | 1,293,085 | 75,373,931 |
Shares redeemed | (2,601,657) | (110,410,750) | (6,168,680) | (288,724,042) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | (1,464,056) | $(61,803,108) | (1,005,937) | $(28,680,171) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (13,992,724) | $(585,941,947) | (24,098,484) | $(1,053,922,319) |
1 | On February 3, 2023, Class B Shares were converted to Class A Shares. Within the Statement of Changes in Net Assets, the conversion from Class B Shares is within the Cost of shares redeemed and the conversion to Class A Shares is within Proceeds from sale of shares. |
Short-Term | Long-Term | Total |
$33,326,463 | $— | $33,326,463 |
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 | 0.25% |
Class C Shares | 0.75% |
Class R Shares | 0.50% |
Distribution Services Fees Incurred | Distribution Services Fees Waived | |
Class A Shares | $970,488 | $(194,098) |
Class B Shares | 10,613 | — |
Class C Shares | 745,912 | — |
Class R Shares | 340,049 | (204,029) |
TOTAL | $2,067,062 | $(398,127) |
Purchases | $666,473,694 |
Sales | $1,113,193,967 |
Beginning Account Value 11/1/2022 | Ending Account Value 4/30/2023 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,027.20 | $6.79 |
Class C Shares | $1,000 | $1,024.10 | $10.04 |
Class R Shares | $1,000 | $1,027.30 | $6.79 |
Institutional Shares | $1,000 | $1,029.70 | $4.48 |
Class R6 Shares | $1,000 | $1,029.40 | $4.43 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,018.10 | $6.76 |
Class C Shares | $1,000 | $1,014.88 | $9.99 |
Class R Shares | $1,000 | $1,018.10 | $6.76 |
Institutional Shares | $1,000 | $1,020.38 | $4.46 |
Class R6 Shares | $1,000 | $1,020.43 | $4.41 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.35% |
Class C Shares | 2.00% |
Class R Shares | 1.35% |
Institutional Shares | 0.89% |
Class R6 Shares | 0.88% |
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 314172610
CUSIP 314172537
CUSIP 314172402
CUSIP 31421N683
Share Class | Ticker | A | FGSAX | C | FGSCX | Institutional | FGSIX | R6 | FGSKX |
Federated Hermes MDT Mid Cap Growth Fund
A Portfolio of Federated Hermes Equity Funds
Sector Composition | Percentage of Total Net Assets |
Information Technology | 25.3% |
Industrials | 18.7% |
Consumer Discretionary | 17.2% |
Health Care | 15.0% |
Financials | 7.0% |
Consumer Staples | 4.5% |
Communication Services | 4.1% |
Energy | 2.9% |
Materials | 2.6% |
Real Estate | 0.8% |
Securities Lending Collateral2 | 0.9% |
Cash Equivalents3 | 2.1% |
Other Assets and Liabilities—Net4 | (1.1)% |
TOTAL | 100% |
1 | Except for Securities Lending Collateral, 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 | Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. |
3 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing securities lending collateral. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares | Value | ||
COMMON STOCKS— 98.1% | |||
Communication Services— 4.1% | |||
749,378 | 1 | Altice USA, Inc. | $ 2,622,823 |
2,090 | Cable One, Inc. | 1,585,077 | |
204,620 | 1 | Match Group, Inc. | 7,550,478 |
91,936 | 1 | Spotify Technology SA | 12,282,650 |
TOTAL | 24,041,028 | ||
Consumer Discretionary— 17.2% | |||
2,488 | 1 | AutoZone, Inc. | 6,626,315 |
44,641 | Block (H&R), Inc. | 1,513,776 | |
51,279 | 1 | Bright Horizons Family Solutions, Inc. | 3,903,358 |
4,494 | 1 | Chipotle Mexican Grill, Inc. | 9,291,884 |
2,421 | 1 | Deckers Outdoor Corp. | 1,160,482 |
38,379 | 1 | DraftKings, Inc. | 840,884 |
41,215 | eBay, Inc. | 1,913,613 | |
17,348 | 1 | Etsy, Inc. | 1,752,668 |
185,820 | 1 | Expedia Group, Inc. | 17,459,647 |
19,859 | Genuine Parts Co. | 3,342,468 | |
17,825 | Hilton Worldwide Holdings, Inc. | 2,567,157 | |
18,554 | 1 | Lululemon Athletica, Inc. | 7,049,221 |
103,066 | 2 | Nordstrom, Inc. | 1,593,400 |
7,514 | 1 | O’Reilly Automotive, Inc. | 6,892,667 |
387,027 | 1,2 | Rocket Companies, Inc. | 3,448,411 |
29,009 | Tractor Supply Co. | 6,915,746 | |
29,751 | 1 | Ulta Beauty, Inc. | 16,405,594 |
70,860 | 1 | YETI Holdings, Inc. | 2,795,427 |
39,703 | Yum! Brands, Inc. | 5,581,448 | |
TOTAL | 101,054,166 | ||
Consumer Staples— 4.5% | |||
83,874 | Albertsons Cos., Inc. | 1,752,967 | |
16,029 | 1 | BJ’s Wholesale Club Holdings, Inc. | 1,224,135 |
36,252 | Hershey Foods Corp. | 9,898,971 | |
120,482 | Lamb Weston Holdings, Inc. | 13,471,092 | |
TOTAL | 26,347,165 | ||
Energy— 2.9% | |||
35,911 | Cheniere Energy, Inc. | 5,494,383 | |
38,288 | Diamondback Energy, Inc. | 5,444,554 | |
75,491 | Halliburton Co. | 2,472,330 | |
42,219 | Ovintiv, Inc. | 1,523,261 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Energy— continued | |||
3,730 | PDC Energy, Inc. | $ 242,941 | |
24,139 | Targa Resources, Inc. | 1,823,219 | |
TOTAL | 17,000,688 | ||
Financials— 7.0% | |||
30,394 | Ameriprise Financial, Inc. | 9,273,817 | |
8,894 | 1 | Arch Capital Group Ltd. | 667,673 |
20,353 | Gallagher (Arthur J.) & Co. | 4,234,645 | |
1,384 | LPL Financial Holdings, Inc. | 289,035 | |
18,210 | Marketaxess Holdings, Inc. | 5,797,518 | |
18,098 | MSCI, Inc., Class A | 8,731,380 | |
636,953 | 1 | StoneCo Ltd. | 7,847,261 |
37,143 | Tradeweb Markets, Inc. | 2,615,239 | |
133,736 | Western Union Co. | 1,461,734 | |
TOTAL | 40,918,302 | ||
Health Care— 15.0% | |||
708,885 | 1 | Adaptive Biotechnologies Corp. | 5,061,439 |
81,834 | Agilent Technologies, Inc. | 11,082,779 | |
1,463 | 1 | Align Technology, Inc. | 475,914 |
46,283 | AmerisourceBergen Corp. | 7,722,319 | |
40,228 | 1 | Avantor, Inc. | 783,641 |
26,712 | 1 | Dexcom, Inc. | 3,241,234 |
45,918 | 1 | Exelixis, Inc. | 840,299 |
7,815 | 1 | IDEXX Laboratories, Inc. | 3,846,230 |
48,115 | 1 | Incyte Genomics, Inc. | 3,580,237 |
9,044 | 1 | IQVIA Holdings, Inc. | 1,702,352 |
114,916 | 1 | Maravai LifeSciences Holdings, Inc. | 1,584,692 |
5,171 | McKesson Corp. | 1,883,485 | |
3,558 | 1 | Mettler-Toledo International, Inc. | 5,306,757 |
33,288 | 1 | Molina Healthcare, Inc. | 9,916,162 |
39,241 | 1 | Neurocrine Biosciences, Inc. | 3,964,911 |
42,879 | 1,2 | Novavax, Inc. | 328,882 |
9,182 | ResMed, Inc. | 2,212,495 | |
27,320 | 1 | Sarepta Therapeutics, Inc. | 3,354,076 |
179,132 | 1 | Syneos Health, Inc. | 7,032,722 |
501,558 | 1 | Teladoc Health, Inc. | 13,306,334 |
1,278 | 1 | Waters Corp. | 383,860 |
2,612 | West Pharmaceutical Services, Inc. | 943,559 | |
TOTAL | 88,554,379 | ||
Industrials— 18.7% | |||
6,537 | AGCO Corp. | 810,196 | |
170,587 | Allison Transmission Holdings, Inc. | 8,322,940 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Industrials— continued | |||
13,210 | 1 | Axon Enterprise, Inc. | $ 2,783,479 |
92,387 | Booz Allen Hamilton Holding Corp. | 8,843,284 | |
1,519 | Carlisle Cos., Inc. | 327,876 | |
17,542 | Cintas Corp. | 7,995,117 | |
24,308 | 1 | Generac Holdings, Inc. | 2,484,764 |
292,405 | 1 | Lyft, Inc. | 2,997,151 |
90,039 | Paychex, Inc. | 9,891,684 | |
3,893 | Quanta Services, Inc. | 660,408 | |
82,691 | Robert Half International, Inc. | 6,036,443 | |
8,698 | Rockwell Automation, Inc. | 2,465,100 | |
61,835 | Trane Technologies PLC | 11,489,561 | |
8,475 | 1 | Transdigm Group, Inc. | 6,483,375 |
156,406 | 1 | Trex Co., Inc. | 8,549,152 |
13,070 | 1 | United Rentals, Inc. | 4,719,708 |
36,923 | Vertiv Holdings Co. | 550,891 | |
11,382 | W.W. Grainger, Inc. | 7,916,978 | |
9,597 | 1 | WESCO International, Inc. | 1,381,968 |
102,025 | 1 | Willscot Corp. | 4,631,935 |
83,809 | 1 | XPO, Inc. | 3,702,682 |
67,015 | Xylem, Inc. | 6,958,838 | |
TOTAL | 110,003,530 | ||
Information Technology— 25.3% | |||
17,011 | 1 | Allegro MicroSystems, Inc. | 608,484 |
8,971 | 1 | Ansys, Inc. | 2,816,176 |
175,056 | 1 | AppLovin Corp. | 2,975,952 |
130,490 | 1 | Arista Networks, Inc. | 20,899,278 |
71,125 | 1 | Cadence Design Systems, Inc. | 14,897,131 |
98,033 | 1 | Ceridian HCM Holding, Inc. | 6,223,135 |
51,494 | Cognex Corp. | 2,455,749 | |
128,839 | 1 | CommScope Holdings Co., Inc. | 635,176 |
12,264 | 1 | Crowdstrike Holdings, Inc. | 1,472,293 |
62,321 | Dell Technologies, Inc. | 2,710,340 | |
29,739 | 1 | Dynatrace Holdings LLC | 1,257,365 |
14,011 | 1 | EPAM Systems, Inc. | 3,957,267 |
190,977 | 1 | Fortinet, Inc. | 12,041,100 |
11,620 | 1 | Gartner, Inc., Class A | 3,514,585 |
2,840 | 1 | HubSpot, Inc. | 1,195,498 |
90,880 | 1 | Informatica, Inc. | 1,405,005 |
87,425 | Jabil, Inc. | 6,832,264 | |
13,453 | 1 | Keysight Technologies, Inc. | 1,945,842 |
57,201 | Microchip Technology, Inc. | 4,175,101 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Information Technology— continued | |||
31,614 | 1 | NCR Corp. | $ 704,676 |
85,494 | 1 | New Relic, Inc. | 6,110,256 |
132,595 | 1 | Nutanix, Inc. | 3,179,628 |
26,084 | 1 | Okta, Inc. | 1,787,537 |
5,658 | 1 | Paycom Software, Inc. | 1,642,914 |
253,612 | Pegasystems, Inc. | 11,569,779 | |
233,228 | 1 | Pure Storage, Inc. | 5,324,595 |
90,104 | 1 | RingCentral, Inc. | 2,483,266 |
33,253 | 1 | Splunk, Inc. | 2,867,739 |
29,911 | 1 | Synopsys, Inc. | 11,106,553 |
48,730 | 1 | Teradata Corp. | 1,886,338 |
38,646 | Vontier Corp. | 1,048,466 | |
121,412 | 1 | Zoom Video Communications, Inc. | 7,458,339 |
TOTAL | 149,187,827 | ||
Materials— 2.6% | |||
27,699 | Albemarle Corp. | 5,137,056 | |
35,036 | CF Industries Holdings, Inc. | 2,507,877 | |
26,888 | Chemours Co./The | 781,634 | |
122,996 | Mosaic Co./The | 5,270,379 | |
18,063 | Steel Dynamics, Inc. | 1,877,649 | |
TOTAL | 15,574,595 | ||
Real Estate— 0.8% | |||
11,234 | SBA Communications, Corp. | 2,930,838 | |
38,513 | 1 | Zillow Group, Inc. | 1,647,586 |
TOTAL | 4,578,424 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $539,450,387) | 577,260,104 | ||
INVESTMENT COMPANIES— 3.0% | |||
5,227,092 | Federated Hermes Government Obligations Fund, Premier Shares, 4.72%3 | 5,227,092 | |
12,666,354 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 4.87%3 | 12,665,088 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $17,889,571) | 17,892,180 | ||
TOTAL INVESTMENT IN SECURITIES—101.1% (IDENTIFIED COST $557,339,958)4 | 595,152,284 | ||
OTHER ASSETS AND LIABILITIES - NET—(1.1)%5 | (6,420,771) | ||
TOTAL NET ASSETS—100% | $588,731,513 |
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | Total of Affiliated Transactions | |
Value as of 10/31/2022 | $7,385,401 | $8,548,662 | $15,934,063 |
Purchases at Cost | $36,445,484 | $107,095,415 | $143,540,899 |
Proceeds from Sales | $(38,603,793) | $(102,990,028) | $(141,593,821) |
Change in Unrealized Appreciation/ Depreciation | $— | $2,251 | $2,251 |
Net Realized Gain/(Loss) | $— | $8,788 | $8,788 |
Value as of 4/30/2023 | $5,227,092 | $12,665,088 | $17,892,180 |
Shares Held as of 4/30/2023 | 5,227,092 | 12,666,354 | 17,893,446 |
Dividend Income | $142,943 | $251,380 | $394,323 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions. |
1 | Non-income-producing security. |
2 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. |
3 | 7-day net yield. |
4 | Also represents cost for federal tax purposes. |
5 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Six Months Ended (unaudited) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $36.23 | $62.37 | $44.93 | $41.20 | $41.35 | $43.07 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | (0.05) | (0.11) | (0.39) | (0.19) | (0.07) | (0.14) |
Net realized and unrealized gain (loss) | 3.28 | (13.61) | 21.36 | 7.14 | 4.77 | 3.92 |
Total From Investment Operations | 3.23 | (13.72) | 20.97 | 6.95 | 4.70 | 3.78 |
Less Distributions: | ||||||
Distributions from net realized gain | (0.82) | (12.42) | (3.53) | (3.22) | (4.85) | (5.50) |
Net Asset Value, End of Period | $38.64 | $36.23 | $62.37 | $44.93 | $41.20 | $41.35 |
Total Return2 | 9.08% | (26.23)% | 49.08% | 18.07% | 13.40% | 9.43% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.14%4 | 1.14% | 1.13% | 1.14% | 1.14% | 1.22% |
Net investment income (loss) | (0.25)%4 | (0.27)% | (0.73)% | (0.46)% | (0.18)% | (0.33)% |
Expense waiver/reimbursement5 | 0.11%4 | 0.09% | 0.08% | 0.11% | 0.11% | 0.06% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $257,668 | $243,046 | $367,018 | $266,252 | $257,818 | $238,586 |
Portfolio turnover6 | 80% | 174% | 141% | 227% | 179% | 171% |
1 | Per share number has 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) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $17.34 | $36.97 | $28.09 | $27.12 | $29.12 | $32.11 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | (0.09) | (0.22) | (0.48) | (0.31) | (0.25) | (0.33) |
Net realized and unrealized gain (loss) | 1.54 | (6.99) | 12.89 | 4.50 | 3.10 | 2.84 |
Total From Investment Operations | 1.45 | (7.21) | 12.41 | 4.19 | 2.85 | 2.51 |
Less Distributions: | ||||||
Distributions from net realized gain | (0.82) | (12.42) | (3.53) | (3.22) | (4.85) | (5.50) |
Net Asset Value, End of Period | $17.97 | $17.34 | $36.97 | $28.09 | $27.12 | $29.12 |
Total Return2 | 8.69% | (26.83)% | 47.91% | 17.17% | 12.54% | 8.58% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.93%4 | 1.93% | 1.92% | 1.93% | 1.88% | 1.97% |
Net investment income (loss) | (1.05)%4 | (1.07)% | (1.51)% | (1.23)% | (0.94)% | (1.09)% |
Expense waiver/reimbursement5 | 0.11%4 | 0.09% | 0.08% | 0.12% | 0.16% | 0.08% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $9,566 | $9,600 | $16,184 | $13,309 | $15,460 | $10,619 |
Portfolio turnover6 | 80% | 174% | 141% | 227% | 179% | 171% |
1 | Per share number has 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) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $38.47 | $65.24 | $46.74 | $42.60 | $42.48 | $44.01 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | (0.00)2 | 0.01 | (0.25) | (0.06) | 0.04 | (0.05) |
Net realized and unrealized gain (loss) | 3.49 | (14.36) | 22.28 | 7.42 | 4.93 | 4.02 |
Total From Investment Operations | 3.49 | (14.35) | 22.03 | 7.36 | 4.97 | 3.97 |
Less Distributions: | ||||||
Distributions from net realized gain | (0.82) | (12.42) | (3.53) | (3.22) | (4.85) | (5.50) |
Net Asset Value, End of Period | $41.14 | $38.47 | $65.24 | $46.74 | $42.60 | $42.48 |
Total Return3 | 9.23% | (26.00)% | 49.47% | 18.46% | 13.71% | 9.69% |
Ratios to Average Net Assets: | ||||||
Net expenses4 | 0.84%5 | 0.84% | 0.84% | 0.84% | 0.84% | 0.95% |
Net investment income (loss) | (0.02)%5 | 0.02% | (0.44)% | (0.13)% | 0.10% | (0.12)% |
Expense waiver/reimbursement6 | 0.18%5 | 0.18% | 0.15% | 0.19% | 0.21% | 0.07% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $276,856 | $169,730 | $279,045 | $188,839 | $246,222 | $177,959 |
Portfolio turnover7 | 80% | 174% | 141% | 227% | 179% | 171% |
1 | Per share number has 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 (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) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $33.23 | $58.16 | $41.99 | $38.59 | $38.95 | $40.80 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.01 | 0.02 | (0.22) | (0.05) | 0.01 | (0.03) |
Net realized and unrealized gain (loss) | 3.00 | (12.53) | 19.92 | 6.67 | 4.48 | 3.68 |
Total From Investment Operations | 3.01 | (12.51) | 19.70 | 6.62 | 4.49 | 3.65 |
Less Distributions: | ||||||
Distributions from net realized gain | (0.82) | (12.42) | (3.53) | (3.22) | (4.85) | (5.50) |
Net Asset Value, End of Period | $35.42 | $33.23 | $58.16 | $41.99 | $38.59 | $38.95 |
Total Return2 | 9.24% | (26.00)% | 49.52% | 18.46% | 13.72% | 9.67% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 0.83%4 | 0.83% | 0.83% | 0.83% | 0.83% | 0.95% |
Net investment income (loss) | 0.04%4 | 0.04% | (0.43)% | (0.14)% | 0.03% | (0.08)% |
Expense waiver/reimbursement5 | 0.11%4 | 0.09% | 0.08% | 0.11% | 0.11% | 0.02% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $44,641 | $36,273 | $49,431 | $31,388 | $31,590 | $6,576 |
Portfolio turnover6 | 80% | 174% | 141% | 227% | 179% | 171% |
1 | Per share number has 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. |
April 30, 2023 (unaudited)
Assets: | |
Investment in securities, at value including $5,140,727 of securities loaned and $17,892,180 of investments in affiliated holdings* (identified cost $557,339,958, including $17,889,571 of identified cost in affiliated holdings) | $595,152,284 |
Income receivable | 48,737 |
Income receivable from affiliated holdings | 53,673 |
Receivable for investments sold | 2,613,177 |
Receivable for shares sold | 792,068 |
Total Assets | 598,659,939 |
Liabilities: | |
Payable for investments purchased | 3,783,761 |
Payable for shares redeemed | 641,784 |
Payable for collateral due to broker for securities lending (Note 2) | 5,227,092 |
Payable for investment adviser fee (Note 5 ) | 31,368 |
Payable for administrative fee (Note 5 ) | 3,736 |
Payable for Directors’/Trustees’ fees (Note 5) | 396 |
Payable for distribution services fee (Note 5) | 5,718 |
Payable for other service fees (Notes 2 and 5 ) | 121,080 |
Accrued expenses (Note 5 ) | 113,491 |
Total Liabilities | 9,928,426 |
Net assets for 15,189,180 shares outstanding | $588,731,513 |
Net Assets Consist of: | |
Paid-in capital | $568,042,195 |
Total distributable earnings (loss) | 20,689,318 |
Total Net Assets | $588,731,513 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($257,668,266 ÷ 6,667,663 shares outstanding), no par value, unlimited shares authorized | $38.64 |
Offering price per share (100/94.50 of $38.64) | $40.89 |
Redemption proceeds per share | $38.64 |
Class C Shares: | |
Net asset value per share ($9,566,307 ÷ 532,371 shares outstanding), no par value, unlimited shares authorized | $17.97 |
Offering price per share | $17.97 |
Redemption proceeds per share (99.00/100 of $17.97) | $17.79 |
Institutional Shares: | |
Net asset value per share ($276,855,589 ÷ 6,728,865 shares outstanding), no par value, unlimited shares authorized | $41.14 |
Offering price per share | $41.14 |
Redemption proceeds per share | $41.14 |
Class R6 Shares: | |
Net asset value per share ($44,641,351 ÷ 1,260,281 shares outstanding), no par value, unlimited shares authorized | $35.42 |
Offering price per share | $35.42 |
Redemption proceeds per share | $35.42 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended April 30, 2023 (unaudited)
Investment Income: | |
Dividends (including $251,380 received from affiliated holdings*) | $2,057,161 |
Net income on securities loaned (includes $142,943 earned from affiliated holdings related to cash collateral balances*) (Note 2) | 96,328 |
TOTAL INCOME | 2,153,489 |
Expenses: | |
Investment adviser fee (Note 5 ) | 1,882,884 |
Administrative fee (Note 5 ) | 197,178 |
Custodian fees | 30,964 |
Transfer agent fees (Note 2) | 248,670 |
Directors’/Trustees’ fees (Note 5 ) | 1,712 |
Auditing fees | 13,590 |
Legal fees | 5,451 |
Portfolio accounting fees | 64,863 |
Distribution services fee (Note 5 ) | 35,311 |
Other service fees (Notes 2 and 5 ) | 325,914 |
Share registration costs | 43,879 |
Printing and postage | 19,476 |
Miscellaneous (Note 5 ) | 14,145 |
TOTAL EXPENSES | 2,884,037 |
Waiver and Reimbursements: | |
Waiver/reimbursement of investment adviser fee (Note 5 ) | (274,341) |
Reimbursement of other operating expenses (Notes 2 and 5) | (72,126) |
TOTAL WAIVER AND REIMBURSEMENTS | (346,467) |
Net expenses | 2,537,570 |
Net investment income (loss) | (384,081) |
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: | |
Net realized loss on investments (including net realized gain of $8,788 on sales of investments in affiliated holdings*) | (6,944,551) |
Net realized gain on foreign currency transactions | 13 |
Net change in unrealized depreciation of investments (including net change in unrealized appreciation of $2,251 of investments in affiliated holdings*) | 47,270,729 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 40,326,191 |
Change in net assets resulting from operations | $39,942,110 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 4/30/2023 | Year Ended 10/31/2022 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment loss | $(384,081) | $(825,254) |
Net realized gain (loss) | (6,944,538) | 3,637,488 |
Net change in unrealized appreciation/depreciation | 47,270,729 | (180,640,715) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 39,942,110 | (177,828,481) |
Distributions to Shareholders: | ||
Class A Shares | (5,479,995) | (71,880,618) |
Class C Shares | (435,225) | (5,393,678) |
Institutional Shares | (3,649,731) | (53,644,485) |
Class R6 Shares | (900,130) | (10,379,505) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (10,465,081) | (141,298,286) |
Share Transactions: | ||
Proceeds from sale of shares | 144,802,528 | 91,485,100 |
Net asset value of shares issued to shareholders in payment of distributions declared | 8,793,675 | 122,473,749 |
Cost of shares redeemed | (52,989,819) | (147,862,414) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 100,606,384 | 66,096,435 |
Change in net assets | 130,083,413 | (253,030,332) |
Net Assets: | ||
Beginning of period | 458,648,100 | 711,678,432 |
End of period | $588,731,513 | $458,648,100 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $114,524 | $— |
Class C Shares | 6,436 | — |
Institutional Shares | 120,116 | (72,126) |
Class R6 Shares | 7,594 | — |
TOTAL | $248,670 | $(72,126) |
Other Service Fees Incurred | |
Class A Shares | $314,143 |
Class C Shares | 11,771 |
TOTAL | $325,914 |
Fair Value of Securities Loaned | Collateral Received |
$5,140,727 | $5,227,092 |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 235,183 | $8,898,788 | 346,284 | $14,501,942 |
Shares issued to shareholders in payment of distributions declared | 135,724 | 4,900,984 | 1,402,103 | 64,482,748 |
Shares redeemed | (411,606) | (15,575,988) | (924,943) | (39,312,167) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | (40,699) | $(1,776,216) | 823,444 | $39,672,523 |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 62,906 | $1,117,226 | 66,292 | $1,365,010 |
Shares issued to shareholders in payment of distributions declared | 22,763 | 383,324 | 219,180 | 4,859,223 |
Shares redeemed | (106,796) | (1,871,566) | (169,793) | (3,378,550) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (21,127) | $(371,016) | 115,679 | $2,845,683 |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 2,989,176 | $123,605,741 | 1,330,208 | $60,066,031 |
Shares issued to shareholders in payment of distributions declared | 80,084 | 3,075,223 | 971,383 | 47,306,343 |
Shares redeemed | (752,726) | (30,057,688) | (2,166,536) | (93,252,686) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 2,316,534 | $96,623,276 | 135,055 | $14,119,688 |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 316,510 | $11,180,773 | 418,479 | $15,552,117 |
Shares issued to shareholders in payment of distributions declared | 13,132 | 434,144 | 138,503 | 5,825,435 |
Shares redeemed | (161,019) | (5,484,577) | (315,307) | (11,919,011) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | 168,623 | $6,130,340 | 241,675 | $9,458,541 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 2,423,331 | $100,606,384 | 1,315,853 | $66,096,435 |
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 |
Distribution Services Fees Incurred | |
Class C Shares | $35,311 |
Purchases | $488,937,848 |
Sales | $401,559,118 |
Beginning Account Value 11/1/2022 | Ending Account Value 4/30/2023 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,090.80 | $5.91 |
Class C Shares | $1,000 | $1,086.90 | $9.99 |
Institutional Shares | $1,000 | $1,092.30 | $4.36 |
Class R6 Shares | $1,000 | $1,092.40 | $4.31 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,019.14 | $5.71 |
Class C Shares | $1,000 | $1,015.22 | $9.64 |
Institutional Shares | $1,000 | $1,020.63 | $4.21 |
Class R6 Shares | $1,000 | $1,020.68 | $4.16 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.14% |
Class C Shares | 1.93% |
Institutional Shares | 0.84% |
Class R6 Shares | 0.83% |
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 314172305
CUSIP 314172198
CUSIP 314172529
Share Class | Ticker | A | SVAAX | C | SVACX | Institutional | SVAIX | R6 | SVALX |
Federated Hermes Strategic Value Dividend Fund
A Portfolio of Federated Hermes Equity Funds
Sector Composition | Percentage of Total Net Assets |
Consumer Staples | 19.7% |
Utilities | 18.3% |
Financials | 13.8% |
Health Care | 11.9% |
Energy | 11.5% |
Communication Services | 11.5% |
Materials | 4.7% |
Information Technology | 2.8% |
Industrials | 2.6% |
Consumer Discretionary | 1.5% |
Real Estate | 0.9% |
Cash Equivalents2 | 0.4% |
Other Assets and Liabilities—Net3 | 0.4% |
TOTAL | 100% |
Shares | Dividend Yield | Value in U.S. Dollars | ||
COMMON STOCKS—99.2% | ||||
Communication Services—11.5% | ||||
22,422,884 | AT&T, Inc. | 6.28% | $396,212,360 | |
7,607,985 | BCE, Inc. | 5.05 | 365,672,940 | |
11,315,272 | Verizon Communications, Inc. | 6.72 | 439,372,012 | |
TOTAL | 1,201,257,312 | |||
Consumer Discretionary—1.5% | ||||
1,272,300 | Best Buy Co., Inc. | 4.94 | 94,811,796 | |
377,875 | Darden Restaurants, Inc. | 3.19 | 57,410,549 | |
TOTAL | 152,222,345 | |||
Consumer Staples—19.7% | ||||
10,378,879 | British American Tobacco PLC | 7.89 | 383,429,902 | |
657,200 | Clorox Co. | 2.85 | 108,845,464 | |
4,687,675 | Conagra Brands, Inc. | 3.48 | 177,944,143 | |
2,009,155 | Kimberly-Clark Corp. | 3.26 | 291,106,468 | |
4,599,797 | Philip Morris International, Inc. | 5.08 | 459,841,706 | |
1,817,600 | The Coca-Cola Co. | 2.87 | 116,599,040 | |
5,062,775 | Unilever PLC | 3.38 | 281,986,481 | |
6,731,100 | Walgreens Boots Alliance, Inc. | 5.45 | 237,271,275 | |
TOTAL | 2,057,024,479 | |||
Energy—11.5% | ||||
7,921,025 | Enbridge, Inc. | 5.60 | 314,946,759 | |
4,970,219 | TC Energy Corp. | 5.62 | 206,571,231 | |
7,592,495 | TotalEnergies SE | 5.11 | 484,013,505 | |
6,523,950 | Williams Cos., Inc. | 4.86 | 197,414,727 | |
TOTAL | 1,202,946,222 | |||
Financials—13.8% | ||||
515,825 | Allianz SE | 4.26 | 129,401,238 | |
2,296,450 | Canadian Imperial Bank of Commerce | 5.09 | 96,275,130 | |
18,217,210 | Huntington Bancshares, Inc. | 5.54 | 204,032,752 | |
11,198,810 | KeyCorp | 7.28 | 126,098,601 | |
471,975 | Muenchener Rueckversicherungs-Gesellschaft AG | 3.41 | 177,221,301 | |
2,059,150 | PNC Financial Services Group, Inc. | 4.61 | 268,204,288 | |
6,054,236 | Truist Financial Corp. | 6.38 | 197,247,009 | |
4,781,991 | U.S. Bancorp | 5.60 | 163,926,651 | |
160,919 | Zurich Insurance Group AG | 5.56 | 77,833,653 | |
TOTAL | 1,440,240,623 |
Shares | Dividend Yield | Value in U.S. Dollars | ||
COMMON STOCKS—continued | ||||
Health Care—11.9% | ||||
1,202,676 | AbbVie, Inc. | 3.92% | $181,748,397 | |
1,190,975 | Amgen, Inc. | 3.55 | 285,524,347 | |
2,598,221 | Gilead Sciences, Inc. | 3.65 | 213,599,748 | |
1,348,475 | Medtronic PLC | 2.99 | 122,643,801 | |
6,554,795 | Pfizer, Inc. | 4.22 | 254,915,978 | |
1,420,535 | Sanofi | 3.56 | 156,572,065 | |
2,740,150 | Viatris, Inc. | 5.14 | 25,565,600 | |
TOTAL | 1,240,569,936 | |||
Industrials—2.6% | ||||
677,350 | Stanley Black & Decker Inc. | 3.71 | 58,482,399 | |
1,163,875 | United Parcel Service, Inc. | 3.60 | 209,276,364 | |
TOTAL | 267,758,763 | |||
Information Technology—2.8% | ||||
95,306 | Broadcom, Inc. | 2.94 | 59,709,209 | |
4,804,700 | Cisco Systems, Inc. | 3.30 | 227,022,075 | |
TOTAL | 286,731,284 | |||
Materials—4.7% | ||||
17,100,400 | Amcor PLC | 4.47 | 187,591,388 | |
3,206,050 | LyondellBasell Industries N.V. | 5.03 | 303,324,390 | |
TOTAL | 490,915,778 | |||
Real Estate—0.9% | ||||
2,226,664 | National Retail Properties, Inc. | 5.05 | 96,859,884 | |
Utilities—18.3% | ||||
2,657,475 | American Electric Power Co., Inc. | 3.59 | 245,603,839 | |
3,864,171 | Dominion Energy, Inc. | 4.67 | 220,798,731 | |
3,578,829 | Duke Energy Corp. | 4.07 | 353,874,612 | |
1,411,525 | Entergy Corp. | 3.98 | 151,851,859 | |
1,959,650 | Evergy, Inc. | 3.94 | 121,713,861 | |
13,746,940 | National Grid-SP PLC | 4.51 | 197,189,761 | |
6,322,830 | PPL Corp. | 3.34 | 181,591,678 | |
1,611,000 | Public Service Enterprises Group, Inc. | 3.61 | 101,815,200 | |
4,565,052 | Southern Co. | 3.81 | 335,759,575 | |
TOTAL | 1,910,199,116 | |||
TOTAL COMMON STOCKS (IDENTIFIED COST $9,992,116,761) | 10,346,725,742 |
Shares | Dividend Yield | Value in U.S. Dollars | ||
INVESTMENT COMPANY—0.4% | ||||
41,034,969 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 4.87%1 (IDENTIFIED COST $41,024,084) | $41,030,865 | ||
TOTAL INVESTMENT IN SECURITIES—99.6% (IDENTIFIED COST $10,033,140,845)2 | 10,387,756,607 | |||
OTHER ASSETS AND LIABILITIES - NET—0.4%3 | 46,183,284 | |||
TOTAL NET ASSETS—100% | $10,433,939,891 |
Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | |
Value as of 10/31/2022 | $49,391,035 |
Purchases at Cost | $1,070,709,098 |
Proceeds from Sales | $(1,079,110,304) |
Change in Unrealized Appreciation/Depreciation | $4,125 |
Net Realized Gain/(Loss) | $36,911 |
Value as of 4/30/2023 | $41,030,865 |
Shares Held as of 4/30/2023 | 41,034,969 |
Dividend Income | $1,483,947 |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | $6,862,052,197 | $— | $— | $6,862,052,197 |
International | 1,597,025,639 | 1,887,647,906 | — | 3,484,673,545 |
Investment Company | 41,030,865 | — | — | 41,030,865 |
TOTAL SECURITIES | $8,500,108,701 | $1,887,647,906 | $— | $10,387,756,607 |
Six Months Ended (unaudited) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $5.89 | $5.70 | $4.49 | $5.82 | $5.73 | $6.34 |
Income From Investment Operations: | ||||||
Net investment income | 0.10 | 0.23 | 0.20 | 0.21 | 0.21 | 0.21 |
Net realized and unrealized gain (loss) | 0.09 | 0.19 | 1.21 | (1.06) | 0.31 | (0.21) |
TOTAL FROM INVESTMENT OPERATIONS | 0.19 | 0.42 | 1.41 | (0.85) | 0.52 | — |
Less Distributions: | ||||||
Distributions from net investment income | (0.11) | (0.23) | (0.20) | (0.21) | (0.21) | (0.20) |
Distributions from net realized gain | (0.32) | — | — | (0.27) | (0.22) | (0.41) |
TOTAL DISTRIBUTIONS | (0.43) | (0.23) | (0.20) | (0.48) | (0.43) | (0.61) |
Net Asset Value, End of Period | $5.65 | $5.89 | $5.70 | $4.49 | $5.82 | $5.73 |
Total Return1 | 3.25% | 7.41% | 31.78% | (15.65)% | 9.68% | (0.16)% |
Ratios to Average Net Assets: | ||||||
Net expenses2 | 1.05%3,4 | 1.06% | 1.05% | 1.05%3 | 1.06% | 1.05% |
Net investment income | 3.58%4 | 3.90% | 3.64% | 4.08% | 3.75% | 3.44% |
Expense waiver/reimbursement5 | 0.12%4 | 0.12% | 0.12% | 0.13% | 0.12% | 0.12% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $1,673,545 | $1,600,974 | $1,366,960 | $1,060,496 | $1,456,023 | $1,603,675 |
Portfolio turnover6 | 23% | 42% | 23% | 38% | 33% | 9% |
Six Months Ended (unaudited) 4/30/2023 | Year Ended October 31, | ||||||
2022 | 2021 | 2020 | 2019 | 2018 | |||
Net Asset Value, Beginning of Period | $5.90 | $5.72 | $4.50 | $5.84 | $5.74 | $6.35 | |
Income From Investment Operations: | |||||||
Net investment income | 0.08 | 0.19 | 0.16 | 0.17 | 0.17 | 0.16 | |
Net realized and unrealized gain (loss) | 0.10 | 0.18 | 1.22 | (1.07) | 0.32 | (0.20) | |
TOTAL FROM INVESTMENT OPERATIONS | 0.18 | 0.37 | 1.38 | (0.90) | 0.49 | (0.04) | |
Less Distributions: | |||||||
Distributions from net investment income | (0.09) | (0.19) | (0.16) | (0.17) | (0.17) | (0.16) | |
Distributions from net realized gain | (0.32) | — | — | (0.27) | (0.22) | (0.41) | |
TOTAL DISTRIBUTIONS | (0.41) | (0.19) | (0.16) | (0.44) | (0.39) | (0.57) | |
Net Asset Value, End of Period | $5.67 | $5.90 | $5.72 | $4.50 | $5.84 | $5.74 | |
Total Return1 | 3.03% | 6.40% | 30.94% | (16.41)% | 9.02% | (0.91)% | |
Ratios to Average Net Assets: | |||||||
Net expenses2 | 1.82%3,4 | 1.81% | 1.80% | 1.80%3 | 1.81% | 1.80% | |
Net investment income | 2.83%4 | 3.16% | 2.92% | 3.34% | 3.00% | 2.69% | |
Expense waiver/reimbursement5 | 0.12%4 | 0.13% | 0.13% | 0.14% | 0.13% | 0.13% | |
Supplemental Data: | |||||||
Net assets, end of period (000 omitted) | $600,886 | $628,173 | $625,041 | $693,876 | $1,217,811 | $1,472,755 | |
Portfolio turnover6 | 23% | 42% | 23% | 38% | 33% | 9% |
Six Months Ended (unaudited) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $5.93 | $5.74 | $4.52 | $5.86 | $5.76 | $6.37 |
Income From Investment Operations: | ||||||
Net investment income | 0.11 | 0.25 | 0.21 | 0.22 | 0.23 | 0.22 |
Net realized and unrealized gain (loss) | 0.09 | 0.19 | 1.22 | (1.07) | 0.32 | (0.20) |
TOTAL FROM INVESTMENT OPERATIONS | 0.20 | 0.44 | 1.43 | (0.85) | 0.55 | 0.02 |
Less Distributions: | ||||||
Distributions from net investment income | (0.12) | (0.25) | (0.21) | (0.22) | (0.23) | (0.22) |
Distributions from net realized gain | (0.32) | — | — | (0.27) | (0.22) | (0.41) |
TOTAL DISTRIBUTIONS | (0.44) | (0.25) | (0.21) | (0.49) | (0.45) | (0.63) |
Net Asset Value, End of Period | $5.69 | $5.93 | $5.74 | $4.52 | $5.86 | $5.76 |
Total Return1 | 3.35% | 7.62% | 32.12% | (15.49)% | 10.09% | 0.09% |
Ratios to Average Net Assets: | ||||||
Net expenses2 | 0.80%3,4 | 0.81% | 0.80% | 0.80%3 | 0.81% | 0.80% |
Net investment income | 3.83%4 | 4.14% | 3.91% | 4.34% | 3.99% | 3.69% |
Expense waiver/reimbursement5 | 0.12%4 | 0.13% | 0.13% | 0.13% | 0.12% | 0.12% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $6,426,256 | $6,193,024 | $4,589,179 | $4,214,131 | $6,632,015 | $7,027,654 |
Portfolio turnover6 | 23% | 42% | 23% | 38% | 33% | 9% |
Six Months Ended (unaudited) 4/30/2023 | Year Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $5.92 | $5.74 | $4.52 | $5.86 | $5.76 | $6.37 |
Income From Investment Operations: | ||||||
Net investment income | 0.11 | 0.26 | 0.21 | 0.22 | 0.23 | 0.22 |
Net realized and unrealized gain (loss) | 0.10 | 0.17 | 1.22 | (1.07) | 0.32 | (0.20) |
TOTAL FROM INVESTMENT OPERATIONS | 0.21 | 0.43 | 1.43 | (0.85) | 0.55 | 0.02 |
Less Distributions: | ||||||
Distributions from net investment income | (0.12) | (0.25) | (0.21) | (0.22) | (0.23) | (0.22) |
Distributions from net realized gain | (0.32) | — | — | (0.27) | (0.22) | (0.41) |
TOTAL DISTRIBUTIONS | (0.44) | (0.25) | (0.21) | (0.49) | (0.45) | (0.63) |
Net Asset Value, End of Period | $5.69 | $5.92 | $5.74 | $4.52 | $5.86 | $5.76 |
Total Return1 | 3.54% | 7.46% | 32.14% | (15.48)% | 10.11% | 0.11% |
Ratios to Average Net Assets: | ||||||
Net expenses2 | 0.78%3,4 | 0.79% | 0.78% | 0.78%3 | 0.79% | 0.78% |
Net investment income | 3.86%4 | 4.14% | 3.85% | 4.35% | 4.00% | 3.69% |
Expense waiver/reimbursement5 | 0.07%4 | 0.07% | 0.07% | 0.07% | 0.07% | 0.07% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $1,733,253 | $1,697,532 | $1,019,551 | $575,195 | $500,119 | $452,251 |
Portfolio turnover6 | 23% | 42% | 23% | 38% | 33% | 9% |
April 30, 2023 (unaudited)
Assets: | ||
Investment in securities, at value including $41,030,865 of investment in an affiliated holding* (identified cost $10,033,140,845, including $41,024,084 of identified cost in an affiliated holding) | $10,387,756,607 | |
Cash denominated in foreign currencies (identified cost $2,899,920) | 2,899,920 | |
Income receivable | 44,127,276 | |
Receivable for investments sold | 10,605,422 | |
Receivable for shares sold | 9,545,089 | |
Income receivable from an affiliated holding | 208,667 | |
TOTAL ASSETS | 10,455,142,981 | |
Liabilities: | ||
Payable for shares redeemed | $18,363,570 | |
Payable for other service fees (Notes 2 and 5) | 872,861 | |
Payable for investment adviser fee (Note 5) | 596,321 | |
Payable for distribution services fee (Note 5) | 373,488 | |
Payable for administrative fee (Note 5) | 66,386 | |
Accrued expenses (Note 5) | 930,464 | |
TOTAL LIABILITIES | 21,203,090 | |
Net assets for 1,834,866,672 shares outstanding | $10,433,939,891 | |
Net Assets Consists of: | ||
Paid-in capital | $9,916,197,558 | |
Total distributable earnings (loss) | 517,742,333 | |
TOTAL NET ASSETS | $10,433,939,891 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | ||
Class A Shares: | ||
Net asset value per share ($1,673,544,548 ÷ 296,029,321 shares outstanding) no par value, unlimited shares authorized | $5.65 | |
Offering price per share (100/94.50 of $5.65) | $5.98 | |
Redemption proceeds per share | $5.65 | |
Class C Shares: | ||
Net asset value per share ($600,886,348 ÷ 105,995,564 shares outstanding) no par value, unlimited shares authorized | $5.67 | |
Offering price per share | $5.67 | |
Redemption proceeds per share (99.00/100 of $5.67) | $5.61 | |
Institutional Shares: | ||
Net asset value per share ($6,426,256,269 ÷ 1,128,442,757 shares outstanding) no par value, unlimited shares authorized | $5.69 | |
Offering price per share | $5.69 | |
Redemption proceeds per share | $5.69 | |
Class R6 Shares: | ||
Net asset value per share ($1,733,252,726 ÷ 304,399,030 shares outstanding) no par value, unlimited shares authorized | $5.69 | |
Offering price per share | $5.69 | |
Redemption proceeds per share | $5.69 |
Six Months Ended April 30, 2023 (unaudited)
Investment Income: | |||
Dividends (including $1,483,947 received from an affiliated holding* and net of foreign taxes withheld of $6,479,391) | $244,590,822 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $39,552,509 | ||
Administrative fee (Note 5) | 4,123,620 | ||
Custodian fees | 252,625 | ||
Transfer agent fees (Note 2) | 3,825,085 | ||
Directors’/Trustees’ fees (Note 5) | 29,050 | ||
Auditing fees | 14,486 | ||
Legal fees | 5,015 | ||
Distribution services fee (Note 5) | 2,356,803 | ||
Other service fees (Notes 2 and 5) | 2,871,178 | ||
Portfolio accounting fees | 109,214 | ||
Share registration costs | 176,236 | ||
Printing and postage | 152,998 | ||
Miscellaneous (Note 5) | 31,835 | ||
TOTAL EXPENSES | 53,500,654 | ||
Waiver, Reimbursements and Reduction: | |||
Waiver/reimbursement of investment adviser fee (Note 5) | $(3,627,130) | ||
Reimbursement of other operating expenses (Notes 2 and 5) | (2,331,150) | ||
Reduction of custodian fees (Note 6) | (4,017) | ||
TOTAL WAIVER, REIMBURSEMENTS AND REDUCTION | (5,962,297) | ||
Net expenses | 47,538,357 | ||
Net investment income | $197,052,465 |
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: | |||
Net realized gain on investments (including net realized gain of $36,911 on sales of investment in an affiliated holding*) and foreign currency transactions | $159,192,034 | ||
Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency (including net change in unrealized appreciation of $4,125 of investment in an affiliated holding*) | (16,295,288) | ||
Net realized and unrealized gain on investments and foreign currency transactions | 142,896,746 | ||
Change in net assets resulting from operations | $339,949,211 |
Six Months Ended (unaudited) 4/30/2023 | Year Ended 10/31/2022 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $197,052,465 | $356,631,629 |
Net realized gain | 159,192,034 | 741,278,486 |
Net change in unrealized appreciation/depreciation | (16,295,288) | (591,219,934) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 339,949,211 | 506,690,181 |
Distributions to Shareholders: | ||
Class A Shares | (121,304,763) | (58,325,217) |
Class C Shares | (44,018,202) | (19,765,070) |
Institutional Shares | (474,293,698) | (217,912,952) |
Class R6 Shares | (130,508,944) | (53,570,436) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (770,125,607) | (349,573,675) |
Share Transactions: | ||
Proceeds from sale of shares | 1,875,941,007 | 4,668,965,602 |
Net asset value of shares issued to shareholders in payment of distributions declared | 669,766,610 | 301,745,827 |
Cost of shares redeemed | (1,801,294,684) | (2,608,855,615) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 744,412,933 | 2,361,855,814 |
Change in net assets | 314,236,537 | 2,518,972,320 |
Net Assets: | ||
Beginning of period | 10,119,703,354 | 7,600,731,034 |
End of period | $10,433,939,891 | $10,119,703,354 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $662,377 | $(404,613) |
Class C Shares | 285,008 | (146,690) |
Institutional Shares | 2,781,428 | (1,779,847) |
Class R6 Shares | 96,272 | — |
TOTAL | $3,825,085 | $(2,331,150) |
Other Service Fees Incurred | |
Class A Shares | $2,085,577 |
Class C Shares | 785,601 |
TOTAL | $2,871,178 |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 32,691,187 | $190,795,477 | 68,285,523 | $411,604,034 |
Shares issued to shareholders in payment of distributions declared | 19,243,703 | 111,678,580 | 8,952,853 | 53,244,018 |
Shares redeemed | (27,919,710) | (161,766,329) | (45,000,360) | (267,042,477) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | 24,015,180 | $140,707,728 | 32,238,016 | $197,805,575 |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 10,502,548 | $61,639,900 | 23,299,942 | $141,388,870 |
Shares issued to shareholders in payment of distributions declared | 7,217,271 | 41,988,994 | 3,185,587 | 18,966,842 |
Shares redeemed | (18,177,659) | (105,745,968) | (29,396,446) | (176,426,524) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (457,840) | $(2,117,074) | (2,910,917) | $(16,070,812) |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 220,649,413 | $1,295,552,907 | 510,740,710 | $3,109,476,548 |
Shares issued to shareholders in payment of distributions declared | 73,344,295 | 428,563,664 | 32,651,918 | 195,621,215 |
Shares redeemed | (210,644,248) | (1,227,891,024) | (298,077,271) | (1,789,821,164) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 83,349,460 | $496,225,547 | 245,315,357 | $1,515,276,599 |
Six Months Ended 4/30/2023 | Year Ended 10/31/2022 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 55,721,786 | $327,952,723 | 165,678,921 | $1,006,496,150 |
Shares issued to shareholders in payment of distributions declared | 14,981,174 | 87,535,372 | 5,664,637 | 33,913,752 |
Shares redeemed | (52,810,345) | (305,891,363) | (62,538,991) | (375,565,450) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | 17,892,615 | $109,596,732 | 108,804,567 | $664,844,452 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 124,799,415 | $744,412,933 | 383,447,023 | $2,361,855,814 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Share Class Name | Percentage of Average Daily Net Assets of Class |
Class A Shares | 0.05% |
Class C Shares | 0.75% |
Distribution Services Fees Incurred | |
Class C Shares | $2,356,803 |
Purchases | $2,569,976,934 |
Sales | $2,410,957,601 |
Beginning Account Value 11/1/2022 | Ending Account Value 4/30/2023 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,032.50 | $5.29 |
Class C Shares | $1,000 | $1,030.30 | $9.16 |
Institutional Shares | $1,000 | $1,033.50 | $4.03 |
Class R6 Shares | $1,000 | $1,035.40 | $3.94 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,019.59 | $5.26 |
Class C Shares | $1,000 | $1,015.77 | $9.10 |
Institutional Shares | $1,000 | $1,020.83 | $4.01 |
Class R6 Shares | $1,000 | $1,020.93 | $3.91 |
Class A Shares | 1.05% |
Class C Shares | 1.82% |
Institutional Shares | 0.80% |
Class R6 Shares | 0.78% |
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 314172578
CUSIP 314172560
CUSIP 31421N881
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 June 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 June 22, 2023
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date June 22, 2023