United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-21822
(Investment Company Act File Number)
Federated Hermes Managed Pool Series
_______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, Pennsylvania 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
Peter J. Germain, Esquire
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 11/30/23
Date of Reporting Period: 11/30/23
Item 1. | Reports to Stockholders |
Ticker | FIBPX |
Federated Hermes International Bond Strategy Portfolio
A Portfolio of Federated Hermes Managed Pool Series
1 Year | 5 Years | 10 Years | |
Fund | 4.36% | 0.18% | 0.98% |
BEMSAE | 10.02% | 1.53% | 3.26% |
JPMGXUS | -0.54% | -3.57% | -1.96% |
Blended Index | 4.68% | -0.92% | 0.73% |
Country | Country Exposure as a Percentage of Total Net Assets2,3 | Currency Exposure as a Percentage of Total Net Assets3,4 |
Japan | 9.5 % | 21.8% |
France | 6.9% | — |
Turkey | 6.6 % | — |
Mexico | 6.4 % | -0.4% |
United Kingdom | 6.1 % | 5.4% |
Brazil | 5.2 % | 0.2% |
Germany | 4.9 % | — |
Colombia | 4.3 % | — |
Italy | 4.0 % | — |
Spain | 3.9 % | — |
Argentina | 3.5 % | — |
South Africa | 2.1 % | — |
Canada | 2.0 % | 2.0% |
Oman | 2.0 % | — |
Bahrain | 1.8 % | — |
Netherlands | 1.7 % | — |
Nigeria | 1.5 % | — |
Belgium | 1.4 % | — |
China | 1.4% | 0.3% |
United States | 1.3 % | 45.5% |
Dominican Republic | 1.2 % | — |
Israel | 1.2% | — |
Other5 | 13.7 % | 1.0 % |
Euro | — | 18.5% |
Norway | — | -1.7% |
SUB-TOTAL | 92.6 % | 92.6% |
Cash Equivalents6 | 6.3% | 6.3% |
Derivative Contracts7,8 | 0.0% | 0.0% |
Other Assets and Liabilities—Net9 | 1.1% | 1.1% |
TOTAL | 100% | 100% |
1 | The fixed-income securities of some issuers may not be denominated in the currency of the issuer’s designated country. Therefore, the two columns above “Country Exposure as a Percentage of Total Net Assets” and “Currency Exposure as a Percentage of Total Net Assets” may not be equal. |
2 | This column depicts the Fund’s exposure to various countries through its investment in foreign fixed-income securities, along with the Fund’s holdings of cash equivalents and other assets and liabilities. With respect to foreign corporate fixed-income securities, country allocations are based primarily on the country in which the issuing company has registered the security. However, the Fund’s Adviser may allocate the company to a country based on other factors such as the location of the company’s head office, the jurisdiction of the company’s incorporation, the location of the principal trading market for the company’s securities or the country from which a majority of the company’s revenue is derived. |
3 | As of the date specified above, the Fund owned shares of one or more affiliated investment companies. For purposes of this table, the affiliated investment company (other than an affiliated money market fund) is not treated as a single portfolio security, but rather the Fund is treated as owning a pro rata portion of each security and each other asset and liability owned by the affiliated investment company. Accordingly, the percentages of total net assets shown in the table will differ from those presented on the Portfolio of Investments. |
4 | This column depicts the Fund’s exposure to various currencies through its investment in foreign fixed-income securities, currency derivative contracts and foreign exchange contracts (which for purposes of this report includes any currency options sold by the Fund and currency forward contracts). |
5 | This line depicts the Fund’s exposure to various countries, each of which represents less than 1.0% of the Fund’s Total Net Assets. |
6 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. This does not include cash held in the Fund that is denominated in foreign currencies. See the Statement of Assets and Liabilities for information regarding the Fund’s foreign cash position. |
7 | Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund’s performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract’s significance to the portfolio. More complete information regarding the Fund’s direct investment in derivative contracts, including unrealized appreciation (depreciation), value and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this report. |
8 | Represents less than 0.1%. |
9 | Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities. |
Principal Amount, Shares or Contracts | Value in U.S. Dollars | ||
BONDS—41.5% | |||
AUSTRALIAN DOLLAR—0.7% | |||
Sovereign—0.7% | |||
130,000 | Australia, Government of, Sr. Unsecd. Note, Series 148, 2.750%, 11/21/2027 | $ 81,886 | |
130,000 | Australia, Government of, Sr. Unsecd. Note, Series 160, 1.000%, 12/21/2030 | 68,981 | |
TOTAL | 150,867 | ||
BRITISH POUND—5.9% | |||
Sovereign—5.9% | |||
140,000 | United Kingdom Gilt, Sr. Unsecd. Note, 0.375%, 10/22/2030 | 138,190 | |
160,000 | United Kingdom, Government of, 3.250%, 1/22/2044 | 164,846 | |
210,000 | United Kingdom, Government of, 4.250%, 12/7/2027 | 266,372 | |
150,000 | United Kingdom, Government of, Unsecd. Deb., 1.625%, 10/22/2028 | 169,420 | |
230,000 | United Kingdom, Government of, Unsecd. Note, 1.500%, 7/22/2047 | 159,500 | |
310,000 | United Kingdom, Government of, Unsecd. Note, 4.250%, 6/7/2032 | 396,154 | |
TOTAL | 1,294,482 | ||
CANADIAN DOLLAR—2.0% | |||
Sovereign—2.0% | |||
190,000 | Canada, Government of, 5.750%, 6/1/2033 | 164,236 | |
65,000 | Canada, Government of, Series WL43, 5.750%, 6/1/2029 | 53,090 | |
300,000 | Canada, Government of, Unsecd. Note, 2.250%, 6/1/2025 | 214,476 | |
TOTAL | 431,802 | ||
EURO—22.6% | |||
Sovereign—22.6% | |||
110,000 | Belgium, Government of, Series 74, 0.800%, 6/22/2025 | 115,564 | |
210,000 | Belgium, Government of, Sr. Unsecd. Note, Series 86, 1.250%, 4/22/2033 | 196,062 | |
195,000 | France, Government of, 0.500%, 5/25/2025 | 204,399 | |
240,000 | France, Government of, 2.750%, 10/25/2027 | 261,280 | |
340,000 | France, Government of, 5.750%, 10/25/2032 | 450,271 | |
220,000 | France, Government of, Bond, 4.500%, 4/25/2041 | 274,523 | |
190,000 | France, Government of, O.A.T., 5.500%, 4/25/2029 | 234,718 | |
120,000 | France, Government of, Unsecd. Note, 2.000%, 5/25/2048 | 98,966 | |
75,000 | Germany, Government of, 2.500%, 7/4/2044 | 78,772 | |
100,000 | Germany, Government of, Bond, Series 03, 4.750%, 7/4/2034 | 131,385 | |
240,000 | Germany, Government of, Unsecd. Deb., 0.500%, 2/15/2028 | 241,878 | |
220,000 | Germany, Government of, Unsecd. Note, 1.000%, 5/15/2038 | 191,994 | |
255,000 | Germany, Government of, Unsecd. Note, 1.000%, 8/15/2024 | 272,700 | |
150,000 | Germany, Government of, Unsecd. Note, 2.100%, 11/15/2029 | 160,962 | |
190,000 | Italy, Government of, Sr. Unsecd. Note, 1.650%, 3/1/2032 | 173,954 | |
210,000 | Italy, Government of, Sr. Unsecd. Note, 4.750%, 9/1/2028 | 241,076 | |
280,000 | Italy, Government of, Unsecd. Note, 1.600%, 6/1/2026 | 292,452 | |
200,000 | Italy, Government of, Unsecd. Note, 3.250%, 9/1/2046 | 176,163 | |
50,000 | Netherlands, Government of, Unsecd. Note, 0.250%, 7/15/2025 | 52,112 | |
80,000 | Netherlands, Government of, Unsecd. Note, 0.750%, 7/15/2027 | 81,504 | |
225,000 | Netherlands, Government of, Unsecd. Note, 2.500%, 1/15/2033 | 239,915 | |
220,000 | Spain, Government of, 4.200%, 1/31/2037 | 251,641 | |
170,000 | Spain, Government of, Sr. Unsecd. Note, 1.500%, 4/30/2027 | 176,023 | |
145,000 | Spain, Government of, Sr. Unsecd. Note, 1.950%, 7/30/2030 | 146,484 | |
110,000 | Spain, Government of, Sr. Unsecd. Note, 2.350%, 7/30/2033 | 109,198 |
Principal Amount, Shares or Contracts | Value in U.S. Dollars | ||
BONDS—continued | |||
EURO—continued | |||
Sovereign—continued | |||
120,000 | Spain, Government of, Unsecd. Note, 1.600%, 4/30/2025 | $ 127,539 | |
TOTAL | 4,981,535 | ||
JAPANESE YEN—9.5% | |||
Sovereign—9.5% | |||
60,000,000 | Japan, Government of, Sr. Unsecd. Note, Series 114, 2.100%, 12/20/2029 | 447,288 | |
125,000,000 | Japan, Government of, Sr. Unsecd. Note, Series 153, 1.300%, 6/20/2035 | 885,750 | |
23,000,000 | Japan, Government of, Sr. Unsecd. Note, Series 44, 1.700%, 9/20/2044 | 161,422 | |
50,000,000 | Japan, Government of, Sr. Unsecd. Note, Series 58, 0.800%, 3/20/2048 | 284,116 | |
45,000,000 | Japan, Government of, Sr. Unsecd. Note, Series 92, 2.100%, 12/20/2026 | 322,039 | |
TOTAL | 2,100,615 | ||
MEXICAN PESO—0.8% | |||
Sovereign—0.8% | |||
3,500,000 | Mexico, Government of, Sr. Unsecd. Note, Series M, 5.750%, 3/5/2026 | 184,871 | |
TOTAL BONDS (IDENTIFIED COST $10,495,196) | 9,144,172 | ||
REPURCHASE AGREEMENTS—6.3% | |||
$ 1,379,000 | Interest in $400,000,000 joint repurchase agreement, 5.31% dated 11/30/2023 under which BNP Paribas S.A. will repurchase the securities provided as collateral for $400,059,000 on 12/1/2023. The securities provided as collateral at the end of the period held with BNY Mellon, tri-party agent, were U.S. Treasury with various maturities to 5/15/2051 and the market value of those underlying securities was $408,060,272. (IDENTIFIED COST $1,379,000) | 1,379,000 | |
PURCHASED CALL OPTIONS—0.0% | |||
Foreign Currency—0.0% | |||
900,000 | EUR CALL/JPY PUT, JP Morgan, Notional Amount $1,000,000, Exercise Price $163, Expiration Date 1/5/2024 (IDENTIFIED COST $4,728) | 3,910 | |
PURCHASED PUT OPTIONS—0.0% | |||
Foreign Currency—0.0% | |||
600,000 | EUR PUT/USD CALL, JP Morgan, Notional Amount $500,000, Exercise Price $1.078, Expiration Date 2/28/2024 (IDENTIFIED COST $3,325) | 4,676 | |
TOTAL PURCHASED PUT OPTIONS (IDENTIFIED COST $3,325) | 4,676 | ||
INVESTMENT COMPANY—51.7% | |||
1,426,828 | Emerging Markets Core Fund (IDENTIFIED COST $13,213,378) | 11,400,353 | |
TOTAL INVESTMENT IN SECURITIES—99.5% (IDENTIFIED COST $25,095,627)1 | $21,932,111 | ||
OTHER ASSETS AND LIABILITIES - NET—0.5%2 | 110,748 | ||
TOTAL NET ASSETS—100% | $22,042,859 |
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized Appreciation |
Long Futures: | ||||
Euro-Bund Long Futures | 1 | $143,997 | December 2023 | $2,562 |
Counterparty | Description | Number of Contracts | Notional Amount | Expiration Date | Exercise Price | Value |
Call Option: | ||||||
JP Morgan | EUR CALL/USD PUT | (600,000) | $600,000 | 2/28/2024 | $1.124 | $(2,005) |
(PREMIUMS RECEIVED $2,897) | $(2,005) |
Settlement Date | Counterparty | Foreign Currency Units to Receive/Deliver | In Exchange For | Unrealized Appreciation/ (Depreciation) | |
Contracts Purchased: | |||||
12/27/2023 | Barclays | $375,000 | 6,637,122 MXN | $(5,441) | |
12/27/2023 | BNP Paribas | $150,000 | 1,635,275 NOK | $(1,265) | |
12/27/2023 | BNY Mellon | $300,000 | 5,472,274 MXN | $(13,672) | |
12/27/2023 | Goldman Sachs | $500,000 | 5,339,036 NOK | $6,134 | |
12/27/2023 | JPMorgan | 275,000 EUR | $302,314 | $(2,584) | |
12/27/2023 | JPMorgan | $150,000 | 1,634,454 NOK | $(1,189) | |
12/27/2023 | Morgan Stanley | 400,000 CNY | $55,271 | $976 | |
12/27/2023 | Morgan Stanley | 100,000 EUR | $107,156 | $1,837 | |
12/27/2023 | Morgan Stanley | $300,000 | 3,309,418 NOK | $(6,125) | |
12/27/2023 | State Street | 475,000 BRL | $94,598 | $1,594 | |
12/27/2023 | State Street | 850,000 BRL | $166,457 | $5,675 | |
12/27/2023 | State Street | 850,000 BRL | $167,594 | $4,538 | |
2/5/2024 | Bank of America | 73,903 AUD | $48,101 | $834 | |
2/5/2024 | BNP Paribas | 27,156 AUD | $17,523 | $458 | |
2/5/2024 | BNP Paribas | 85,284 GBP | $106,067 | $1,658 | |
2/5/2024 | BNY Mellon | 16,387 CHF | $18,384 | $472 | |
2/5/2024 | BNY Mellon | 7,027,814 JPY | $47,135 | $799 | |
2/5/2024 | Citibank | 55,115 CAD | $40,103 | $557 | |
2/5/2024 | Citibank | 105,507 EUR | $113,304 | $1,893 | |
2/5/2024 | Citibank | 31,382 GBP | $38,608 | $1,030 | |
2/5/2024 | HSBC | 26,362 AUD | $16,780 | $675 | |
2/5/2024 | HSBC | 29,674 GBP | $35,924 | $1,557 | |
2/5/2024 | JPMorgan | 285,110 EUR | $311,074 | $219 | |
2/5/2024 | JPMorgan | 20,340,450 JPY | $136,715 | $2,019 | |
2/5/2024 | Morgan Stanley | 150,986 CAD | $110,116 | $1,271 | |
2/5/2024 | Morgan Stanley | 44,355 CHF | $50,415 | $622 | |
2/5/2024 | Morgan Stanley | 101,035 EUR | $106,792 | $3,521 | |
2/5/2024 | State Street | 52,983 CAD | $38,220 | $868 | |
2/5/2024 | State Street | 15,636 CHF | $17,369 | $622 | |
2/6/2024 | Bank of America | 585,715 MXN | $33,010 | $327 | |
2/6/2024 | BNY Mellon | 548,242 MXN | $30,002 | $1,203 | |
2/6/2024 | JPMorgan | 1,587,764 MXN | $90,770 | $(398) | |
2/8/2024 | Bank of America | $21,000 | 28,647 CAD | $(135) | |
2/8/2024 | Citibank | $5,250 | 57,187 NOK | $(46) | |
2/8/2024 | JPMorgan | $5,250 | 55,802 NOK | $82 | |
2/8/2024 | State Street | 58,196 EUR | $62,651 | $897 | |
2/8/2024 | State Street | $9,667 | 14,691 AUD | $(62) | |
2/8/2024 | State Street | $10,000 | 16,489 NZD | $(156) | |
Contracts Sold: | |||||
12/27/2023 | Bank of America | $125,000 | 125,000 NOK | $(797) | |
12/27/2023 | Barclays | $100,000 | 1,078,461 NOK | $(241) | |
12/27/2023 | BNP Paribas | $200,000 | 2,225,043 NOK | $5,819 | |
12/27/2023 | Credit Agricole | 507,609 EUR | 79,152,744 JPY | $(16,921) | |
12/27/2023 | Credit Agricole | $1,370,000 | 201,000,852 JPY | $(8,028) | |
12/27/2023 | JPMorgan | 350,000 EUR | 54,994,184 JPY | $(8,836) | |
12/27/2023 | JPMorgan | 80,000 GBP | $97,503 | $(3,520) | |
12/27/2023 | JPMorgan | $270,000 | 40,133,864 JPY | $1,945 | |
12/27/2023 | JPMorgan | $300,000 | 3,332,941 NOK | $8,301 | |
12/27/2023 | Morgan Stanley | $120,000 | 2,199,592 MXN | $6,081 | |
12/27/2023 | State Street | 475,000 BRL | $93,147 | $(3,045) |
Settlement Date | Counterparty | Foreign Currency Units to Receive/Deliver | In Exchange For | Unrealized Appreciation/ (Depreciation) | |
12/27/2023 | State Street | 1,700,000 BRL | $333,008 | $(11,256) | |
12/27/2023 | State Street | 460,000 EUR | $489,036 | $(12,330) | |
12/27/2023 | State Street | $255,000 | 4,597,595 MXN | $8,535 | |
2/5/2024 | Bank of America | 127,421 AUD | $83,814 | $(558) | |
2/5/2024 | Bank of America | 259,084 CAD | $189,431 | $(1,703) | |
2/5/2024 | Bank of America | 76,378 CHF | $87,199 | $(685) | |
2/5/2024 | Bank of America | 27,368,264 JPY | $187,243 | $576 | |
2/5/2024 | Morgan Stanley | 146,340 GBP | $183,463 | $(1,381) | |
2/5/2024 | Wells Fargo | 491,652 EUR | $538,973 | $2,169 | |
2/6/2024 | BNP Paribas | 2,721,721 MXN | $156,340 | $1,425 | |
2/8/2024 | Credit Agricole | 29,098 EUR | $31,662 | $(112) | |
2/8/2024 | Credit Agricole | $62,500 | 9,234,186 JPY | $510 | |
2/8/2024 | Credit Agricole | $10,500 | 116,516 NOK | $291 | |
2/8/2024 | HSBC | 6,700 GBP | 12,718 AUD | $(41) | |
2/8/2024 | HSBC | 6,700 GBP | 13,875 NZD | $83 | |
2/8/2024 | JPMorgan | 14,549 EUR | $16,028 | $141 | |
2/8/2024 | JPMorgan | $9,667 | 14,855 AUD | $170 | |
2/8/2024 | JPMorgan | $10,500 | 14,442 CAD | $155 | |
2/8/2024 | Morgan Stanley | $10,000 | 16,767 NZD | $327 | |
2/8/2024 | State Street | $10,500 | 14,360 CAD | $94 | |
NET UNREALIZED DEPRECIATION ON FOREIGN EXCHANGE CONTRACTS | $(21,567) |
Emerging Markets Core Fund | |
Value as of 11/30/2022 | $6,499,592 |
Purchases at Cost | $12,431,494 |
Proceeds from Sales | $(7,800,000) |
Change in Unrealized Appreciation/Depreciation | $169,289 |
Net Realized Gain/(Loss) | $99,978 |
Value as of 11/30/2023 | $11,400,353 |
Shares Held as of 11/30/2023 | 1,426,828 |
Dividend Income | $729,486 |
1 | The cost of investments for federal tax purposes amounts to $25,098,050. |
2 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
Bonds | $— | $9,144,172 | $— | $9,144,172 |
Purchased Call Options | — | 3,910 | — | 3,910 |
Purchased Put Options | — | 4,676 | — | 4,676 |
Investment Company | 11,400,353 | — | — | 11,400,353 |
Repurchase Agreements | — | 1,379,000 | — | 1,379,000 |
TOTAL SECURITIES | $11,400,353 | $10,531,758 | $— | $21,932,111 |
Other Financial Instruments: | ||||
Assets | ||||
Futures Contracts | $2,562 | $— | $— | $2,562 |
Foreign Exchange Contracts | — | 78,960 | — | 78,960 |
Liabilities | ||||
Written Call Options | — | (2,005) | — | (2,005) |
Foreign Exchange Contracts | — | (100,527) | — | (100,527) |
TOTAL OTHER FINANCIAL INSTRUMENTS | $2,562 | $(23,572) | $— | $(21,010) |
The following acronym(s) are used throughout this portfolio: | ||
AUD | —Australian Dollar | |
BRL | —Brazilian Real | |
CAD | —Canadian Dollar | |
CHF | —Swiss Franc | |
CNY | —Chinese Yuan Renminbi | |
EUR | —Euro | |
GBP | —Great British Pound | |
JPY | —Japanese Yen | |
MXN | —Mexican Peso | |
NOK | —Norwegian Krone | |
NZD | —New Zealand Dollar | |
USD | —United States Dollar |
Year Ended November 30, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $11.70 | $14.83 | $15.59 | $14.75 | $14.01 |
Income From Investment Operations: | |||||
Net investment income1 | 0.57 | 0.52 | 0.62 | 0.51 | 0.53 |
Net realized and unrealized gain (loss) | (0.06) | (2.94) | (1.05) | 0.83 | 0.81 |
Total from Investment Operations | 0.51 | (2.42) | (0.43) | 1.34 | 1.34 |
Less Distributions: | |||||
Distributions from net investment income | — | (0.71) | (0.33) | (0.50) | (0.60) |
Net Asset Value, End of Period | $12.21 | $11.70 | $14.83 | $15.59 | $14.75 |
Total Return2 | 4.36% | (17.16)% | (2.90)% | 9.34% | 9.92% |
Ratios to Average Net Assets: | |||||
Net expenses3,4 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Net investment income | 4.81% | 3.95% | 4.01% | 3.49% | 3.66% |
Expense waiver/reimbursement5 | 1.54% | 0.94% | 0.49% | 0.93% | 1.24% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $22,043 | $13,251 | $62,853 | $52,037 | $23,369 |
Portfolio turnover6 | 76% | 15% | 53% | 69% | 52% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | See Note 5, Investment Adviser Fee and Other Transactions with Affiliates. |
5 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. Amount does not reflect expense waiver/ reimbursement recorded by investment companies in which the Fund may invest. |
6 | Securities that mature are considered sales for purposes of this calculation. |
Assets: | |
Investment in securities, at value including $11,400,353 of investment in an affiliated holding* (identified cost $25,095,627, including $13,213,378 of identified cost in an affiliated holding) | $21,932,111 |
Cash denominated in foreign currencies (identified cost $162,130) | 162,087 |
Cash | 966 |
Income receivable | 96,354 |
Unrealized appreciation on foreign exchange contracts | 78,960 |
Receivable for shares sold | 37,699 |
Receivable for investments sold | 3,331 |
Due from broker (Note 2) | 2,835 |
Total Assets | 22,314,343 |
Liabilities: | |
Unrealized depreciation on foreign exchange contracts | $100,527 |
Payable for portfolio accounting fees | 89,809 |
Payable for auditing fees | 33,015 |
Payable for custodian fees | 20,586 |
Payable for share registration costs | 5,912 |
Payable for shares redeemed | 5,383 |
Payable for investments purchased | 3,755 |
Payable to adviser (Note 5) | 2,020 |
Written options outstanding, at value (premium received $2,897) | 2,005 |
Payable for variation margin on futures contracts | 457 |
Accrued expenses (Note 5) | 8,015 |
TOTAL LIABILITIES | 271,484 |
Net assets for 1,805,781 shares outstanding | $22,042,859 |
Net Assets Consist of: | |
Paid-in capital | $32,019,267 |
Total distributable earnings (loss) | (9,976,408) |
TOTAL NET ASSETS | $22,042,859 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
$22,042,859 ÷ 1,805,781 shares outstanding, no par value, unlimited shares authorized | $12.21 |
* | See information listed after the Fund’s Portfolio of Investments. |
Investment Income: | |
Interest | $204,265 |
Dividends received from an affiliated holding* | 729,486 |
TOTAL INCOME | 933,751 |
Expenses: | |
Administrative fee (Note 5) | $15,954 |
Custodian fees | 32,507 |
Transfer agent fees | 4,134 |
Directors’/Trustees’ fees (Note 5) | 1,374 |
Auditing fees | 35,330 |
Legal fees | 12,154 |
Portfolio accounting fees | 139,710 |
Share registration costs | 24,111 |
Printing and postage | 19,540 |
Miscellaneous (Note 5) | 14,500 |
TOTAL EXPENSES | 299,314 |
Reimbursement of other operating expenses (Note 5) | (299,314) |
Net expenses | — |
Net investment income | 933,751 |
Realized and Unrealized Gain (Loss) on Investments, Foreign Exchange Contracts, Futures Contracts, Written Options, Swap Contracts and Foreign Currency Transactions: | |
Net realized loss on investments (including net realized gain of $99,978 on sales of investments in an affiliated holding*) and foreign currency transactions | (419,351) |
Net realized loss on foreign exchange contracts | (293,008) |
Net realized loss on futures contracts | (2,586) |
Net realized gain on written options | 5,707 |
Net realized loss on swap contracts | (2,668) |
Net change in unrealized depreciation of investments and translation of assets and liabilities in foreign currency (including net change in unrealized depreciation of $169,289 of investments in an affiliated holding*) | 565,101 |
Net change in unrealized appreciation of foreign exchange contracts | (69,459) |
Net change in unrealized appreciation of futures contracts | 2,562 |
Net change in unrealized appreciation of written options | 892 |
Net realized and unrealized gain (loss) on investments, foreign exchange contracts, futures contracts, written options, swap contracts and foreign currency transactions | (212,810) |
Change in net assets resulting from operations | $720,941 |
* | See information listed after the Fund’s Portfolio of Investments. |
Year Ended November 30 | 2023 | 2022 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $933,751 | $1,257,415 |
Net realized loss | (711,906) | (8,198,968) |
Net change in unrealized appreciation/depreciation | 499,096 | (337,925) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 720,941 | (7,279,478) |
Distribution to Common Shareholders | — | (2,996,216) |
Share Transactions: | ||
Proceeds from sale of shares | 22,662,260 | 13,023,781 |
Net asset value of shares issued to shareholders in payment of distributions declared | — | 110,582 |
Cost of shares redeemed | (14,591,542) | (52,460,725) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 8,070,718 | (39,326,362) |
Change in net assets | 8,791,659 | (49,602,056) |
Net Assets: | ||
Beginning of period | 13,251,200 | 62,853,256 |
End of period | $22,042,859 | $13,251,200 |
Fair Value of Derivative Instruments | ||||
Asset | Liability | |||
Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||||
Foreign exchange contracts | Unrealized appreciation on foreign exchange contracts | $78,960 | Unrealized depreciation on foreign exchange contracts | $100,527 |
Interest rate contracts | Receivable for variation margin on futures contracts | 2,562* | Payable for variation margin on futures contracts | — |
Fair Value of Derivative Instruments | ||||
Asset | Liability | |||
Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | |
Foreign exchange contracts | Purchased Options within Investment in securities, at value | $8,586 | Written Options Outstanding, at value | $2,005 |
Total derivatives not accounted for as hedging instruments under ASC Topic 815 | $90,108 | $102,532 |
* | Includes net cumulative appreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | ||||||
Swap Contracts | Futures Contracts | Foreign Exchange Contracts | Purchased Options Contracts1 | Written Options Contracts | Total | |
Interest rate contracts | $— | $(2,586) | $— | $— | $— | $(2,586) |
Foreign exchange contracts | — | — | (293,008) | (7,060) | 5,707 | (294,361) |
Credit contracts | (2,668) | — | — | — | — | (2,668) |
TOTAL | $(2,668) | $(2,586) | $(293,008) | $(7,060) | $5,707 | $(299,615) |
1 | The net realized loss on Purchased Options is found within the Net realized loss on investments and foreign currency transactions on the Statement of Operations. |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |||||
Futures Contracts | Foreign Exchange Contracts | Purchased Options Contracts1 | Written Options Contracts | Total | |
Interest rate contracts | $2,562 | $— | $— | $— | $2,562 |
Foreign exchange contracts | — | (69,459) | 533 | 892 | (68,034) |
TOTAL | $2,562 | $(69,459) | $533 | $892 | $(65,472) |
1 | The net change in unrealized appreciation of Purchased Options is found within the net change in unrealized depreciation of investments and translation of assets and liabilities in foreign currency on the Statement of Operations. |
Gross Amounts Not Offset in the Statement of Assets and Liabilities | ||||
Transaction | Gross Asset Derivatives Presented in Statement of Assets and Liabilities | Financial Instrument | Collateral Received | Net Amount |
Purchased options contracts | $8,586 | $— | $— | $8,586 |
Foreign exchange contracts | 78,960 | (49,724) | — | 29,236 |
TOTAL | $87,546 | $(49,724) | $— | $37,822 |
Transaction | Gross Liability Derivatives Presented in Statement of Assets and Liabilities | Financial Instrument | Collateral Pledged | Net Amount |
Written options contracts | $2,005 | $— | $— | $2,005 |
Foreign exchange contracts | 100,527 | (49,724) | — | 50,803 |
TOTAL | $102,532 | $(49,724) | $— | $52,808 |
Year Ended 11/30/2023 | Year Ended 11/30/2022 | |
Shares sold | 1,891,596 | 1,017,088 |
Shares issued to shareholders in payment of distributions declared | — | 7,787 |
Shares redeemed | (1,218,308) | (4,129,609) |
NET CHANGE RESULTING FROM FUND SHARE TRANSACTIONS | 673,288 | (3,104,734) |
2023 | 2022 | |
Ordinary income1 | $— | $2,996,216 |
1 | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Undistributed ordinary income | $761,631 |
Net unrealized depreciation | $(3,165,047) |
Capital loss carryforwards | $(7,578,836) |
Other timing differences | $5,844 |
TOTAL | $(9,976,408) |
Short-Term | Long-Term | Total |
$1,077,736 | $6,501,100 | $7,578,836 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Purchases | $21,821,415 |
Sales | $13,395,154 |
January 23, 2024
Beginning Account Value 6/1/2023 | Ending Account Value 11/30/2023 | Expenses Paid During Period1 | |
Actual | $1,000.00 | $1,033.00 | $0.00 |
Hypothetical (assuming a 5% return before expenses) | $1,000.00 | $1,025.07 | $0.00 |
1 | Expenses are equal to the Fund’s annualized net expense ratio of 0.00%, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half-year period). Federated Investment Management Company, the Adviser, has contractually agreed to reimburse all operating expenses excluding extraordinary expenses and expenses allocated from affiliated holdings, incurred by the Fund. This agreement has no fixed term. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: October 2005 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd. |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2016 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Director and Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, and Federated MDTA LLC; Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and CEO of Passport Research, Ltd.; Director and President, Technology, Federated Services Company. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee and Chair of the Board of Directors or Trustees of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Member of the Compensation Committee, Equifax, Inc.; Lead Director, Member of the Audit and Nominating and Corporate Governance Committees, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor of Law, Emerita, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (natural gas). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as Director of the Office of Church Relations and later as Associate General Secretary for the Diocese of Pittsburgh, a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green was appointed by the Supreme Court of Pennsylvania and previously served on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. Judge Lally-Green was then appointed by the Supreme Court of Pennsylvania and currently serves on the Judicial Ethics Advisory Board. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); Director, Catholic Charities, Pittsburgh; and Director, CNX Resources Corporation (natural gas). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, Saint Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint Francis University. |
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: October 2006 | Principal Occupations: Director or Trustee and Chair of the Audit Committee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber); and Director, The Golisano Children’s Museum of Naples, Florida. |
Madelyn A. Reilly Birth Date: February 2, 1956 Trustee Indefinite Term Began serving: November 2020 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors, Duquesne University (Retired). Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors and Director of Risk Management and Associate General Counsel, Duquesne University. Prior to her work at Duquesne University, Ms. Reilly served as Assistant General Counsel of Compliance and Enterprise Risk as well as Senior Counsel of Environment, Health and Safety, PPG Industries. Ms. Reilly currently serves as a member of the Board of Directors of UPMC Mercy Hospital, and as a member of the Board of Directors of Catholic Charities, Pittsburgh. |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CONSOL Energy Inc. (now split into two separate publicly traded companies known as CONSOL Energy Inc. and CNX Resources Corp.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and CNX Gas Company; and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: November 2005 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: January 2005 | Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, Inc. in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Robert J. Ostrowski Birth Date: April 26, 1963 Chief Investment Officer Officer since: September 2006 | Principal Occupations: Robert J. Ostrowski joined Federated Hermes, Inc. in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated Hermes’ taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund’s Adviser in 2009 and served as a Senior Vice President of the Fund’s Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University. |
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: February 2015 | Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments. |
Annual Evaluation of Adequacy and Effectiveness
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
Item 2. | Code of Ethics |
(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics (the "Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers") that applies to the registrant's Principal Executive Officer and Principal Financial Officer; the registrant's Principal Financial Officer also serves as the Principal Accounting Officer.
(c) There was no amendment to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.
(d) There was no waiver granted, either actual or implicit, from a provision to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.
(e) Not Applicable
(f)(3) The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.
Item 3. Audit Committee Financial Expert
The registrant's Board has determined that each of the following members of the Board's Audit Committee is an “audit committee financial expert,” and is "independent," for purposes of this Item: Thomas M. O'Neill and John S. Walsh.
Item 4. | Principal Accountant Fees and Services |
(a) Audit Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2023 – $160,527
Fiscal year ended 2022 - $148,846
(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2023 - $0
Fiscal year ended 2022 - $0
Amount requiring approval of the registrant’s Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(c) Tax Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2023 - $0
Fiscal year ended 2022 - $0
Amount requiring approval of the registrant’s Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(d) All Other Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2023 - $0
Fiscal year ended 2022 - $0
Amount requiring approval of the registrant’s Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $78,852 and $76,302 respectively. Fiscal year ended 2023- Service fees for analysis of potential Passive Foreign Investment Company holdings. Fiscal year ended 2022- Service fees for analysis of potential Passive Foreign Investment Company holdings.
(e)(1) Audit Committee Policies regarding Pre-approval of Services.
The Audit Committee is required to pre-approve audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor’s independence. Unless a type of service to be provided by the independent auditor has received general pre-approval, it will require specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.
Certain services have the general pre-approval of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate to management its responsibilities to pre-approve services performed by the independent auditor.
The Audit Committee has delegated pre-approval authority to its chairman (the “Chairman”) for services that do not exceed a specified dollar threshold. The Chairman or Chief Audit Executive will report any such pre-approval decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with such pre-approval authority when the Chairman is unavailable.
AUDIT SERVICES
The annual audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee will approve, if necessary, any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.
In addition to the annual audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other audit services, which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain audit services; with limited exception, all other audit services must be specifically pre-approved by the Audit Committee.
AUDIT-RELATED SERVICES
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the RIC’s financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of audit-related services does not impair the independence of the auditor, and has pre-approved certain audit-related services; all other audit-related services must be specifically pre-approved by the Audit Committee.
TAX SERVICES
The Audit Committee believes that the independent auditor can provide tax services to the RIC such as tax compliance, tax planning and tax advice without impairing the auditor’s independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved certain tax services; with limited exception, all tax services involving large and complex transactions must be specifically pre-approved by the Audit Committee.
ALL OTHER SERVICES
With respect to the provision of permissible services other than audit, review or attest services the pre-approval requirement is waived if:
(1) With respect to such services rendered to the Funds, the aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues paid by the audit client to its accountant during the fiscal year in which the services are provided; and,
(2) With respect to such services rendered to the Fund’s investment adviser ( the “Adviser”)and any entity controlling, controlled by to under common control with the Adviser such as affiliated non-U.S. and U.S. funds not under the Audit Committee’s purview and which do not fall within a category of service which has been determined by the Audit Committee not to have a direct impact on the operations or financial reporting of the RIC, the aggregate amount of all services provided constitutes no more than five percent of the total amount of revenues paid to the RIC’s auditor by the RIC, its Adviser and any entity controlling, controlled by, or under common control with the Adviser during the fiscal year in which the services are provided; and
(3) Such services were not recognized by the issuer or RIC at the time of the engagement to be non-audit services; and
(4) Such services are promptly brought to the attention of the Audit Committee and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee who are members of the Board of Directors to whom authority to grant such approvals has been delegated by the Audit Committee.
The Audit Committee may grant general pre-approval to those permissible non-audit services which qualify for pre-approval and which it believes are routine and recurring services, and would not impair the independence of the auditor.
The Securities and Exchange Commission’s (the “SEC”) rules and relevant guidance should be consulted to determine the precise definitions of these services and applicability of exceptions to certain of the prohibitions.
PRE-APPROVAL FEE LEVELS
Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee.
PROCEDURES
Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by the Fund’s Principal Accounting Officer and/or the Chief Audit Executive of Federated Hermes, Inc., only after those individuals have determined that the request or application is consistent with the SEC’s rules on auditor independence.
(e)(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
4(b)
Fiscal year ended 2023 – 0%
Fiscal year ended 2022 - 0%
Percentage of services provided to the registrant’s Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(c)
Fiscal year ended 2023 – 0%
Fiscal year ended 2022 – 0%
Percentage of services provided to the registrant’s Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(d)
Fiscal year ended 2023 – 0%
Fiscal year ended 2022 – 0%
Percentage of services provided to the registrant’s Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
(f) NA
(g) Non-Audit Fees billed to the registrant, the registrant’s Adviser, and certain entities controlling, controlled by or under common control with the Adviser:
Fiscal year ended 2023 - $283,012
Fiscal year ended 2022 - $219.528
(h) The registrant’s Audit Committee has considered that the provision of non-audit services that were rendered to the registrant’s Adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
Item 5. | Audit Committee of Listed Registrants |
Not Applicable
Item 6. | Schedule of Investments |
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
Item 8. | Portfolio Managers of Closed-End Management Investment Companies |
Not Applicable
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
Not Applicable
Item 10. | Submission of Matters to a Vote of Security Holders |
No Changes to Report
Item 11. | Controls and Procedures |
(a) The registrant’s President and Treasurer have concluded that the
registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies |
Not Applicable
Item 13. | Exhibits |
(a)(1) Code of Ethics- Not Applicable to this Report.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Federated Hermes Managed Pool Series
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date January 23, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /S/ J. Christopher Donahue
J. Christopher Donahue, Principal Executive Officer
Date January 23, 2024
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date January 23, 2024