United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-23259
(Investment Company Act File Number)
Federated Hermes Adviser Series
_______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, 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: 05/31/22
Date of Reporting Period: 05/31/22
Item 1. | Reports to Stockholders |
Share Class | Ticker | Institutional | PIEFX | R6 | FRIEX |
Federated Hermes Emerging Markets Equity Fund
A Portfolio of Federated Hermes Adviser Series
1 Year | 5 Year | Start of Performance5 | |
Institutional Shares | -25.50% | 7.20% | 9.11% |
Class R6 Shares6 | -26.68% | 7.20% | 9.11% |
MSCI EM | -19.83% | 3.80% | 4.70% |
MSCI EM Growth | -25.37% | 4.80% | 6.10% |
MFDEMFA | -19.25% | 3.39% | 3.85% |
Country | Percentage of Total Net Assets |
China | 31.8% |
Taiwan | 14.8% |
South Korea | 13.7% |
India | 6.2% |
Brazil | 5.5% |
Indonesia | 3.3% |
Vietnam | 2.7% |
Malaysia | 2.4% |
Saudi Arabia | 2.2% |
South Africa | 2.2% |
Argentina | 1.9% |
Chile | 1.8% |
Poland | 1.4% |
Thailand | 1.3% |
Peru | 1.2% |
Hong Kong | 1.0% |
Other2 | 2.8% |
Cash Equivalents3 | 8.4% |
Other Assets and Liabilities—Net4 | (4.6)% |
TOTAL | 100% |
Sector Classification | Percentage of Total Net Assets |
Information Technology | 22.9% |
Industrials | 13.4% |
Materials | 12.2% |
Financials | 11.8% |
Communication Services | 9.3% |
Consumer Discretionary | 9.2% |
Energy | 7.7% |
Consumer Staples | 5.6% |
Real Estate | 2.1% |
Health Care | 2.0% |
Cash Equivalents2 | 8.4% |
Other Assets and Liabilities—Net3 | (4.6)% |
TOTAL | 100% |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—96.2% | |||
Argentina—1.9% | |||
783 | 1 | Mercadolibre, Inc. | $615,344 |
2,366 | 1 | Globant SA | 448,381 |
TOTAL | 1,063,725 | ||
Brazil—5.5% | |||
128,630 | 1 | 3R Petroleum Oleo e Gas | 1,319,442 |
132,717 | Banco Bradesco SA, ADR | 564,047 | |
135,567 | Petroleo Brasileiro SA | 948,745 | |
27,327 | Sao Martinho SA | 289,741 | |
TOTAL | 3,121,975 | ||
Chile—1.8% | |||
9,643 | Sociedad Quimica Y Minera de Chile, ADR | 1,023,797 | |
China—31.8% | |||
171,919 | 1 | Alibaba Group Holding Ltd. | 2,072,312 |
16,380 | 1 | Bilibili, Inc. | 366,799 |
150,456 | China Merchants Bank Co. Ltd. | 949,499 | |
555,000 | China Molybdenum Co. Ltd. | 271,908 | |
9,000 | Contemporary Amperex Technology Co. Ltd. | 550,328 | |
93,543 | Ganfeng Lithium Co. Ltd. | 1,189,632 | |
112,300 | GoerTek, Inc. | 686,018 | |
10,367 | JD.com, Inc. | 293,037 | |
2,090 | Kweichow Moutai Co. Ltd. | 563,189 | |
1,728,000 | 1,2 | KWG Group Holdings Ltd. | 533,524 |
299,500 | 1 | Medlive Technology Co. Ltd. | 340,775 |
65,900 | 1 | Meituan | 1,553,007 |
107,600 | Nari Technology Development Co. Ltd. | 552,848 | |
71,150 | Shenzhen Inovance Technology Co. Ltd. | 653,544 | |
66,364 | Tencent Holdings Ltd. | 3,058,640 | |
83,500 | Wuxi Lead Intelligent Equipment Co. Ltd. | 607,439 | |
107,559 | 1 | Wuxi Biologics (Cayman) Inc. | 783,585 |
250,101 | Xinyi Solar Holdings Ltd. | 442,675 | |
33,900 | Yunnan Energy New Material Co. Ltd. | 1,106,741 | |
960,022 | Zijin Mining Group Co. Ltd. | 1,292,903 | |
TOTAL | 17,868,403 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—continued | |||
Hong Kong—1.0% | |||
55,994 | AIA Group Ltd. | $572,744 | |
India—6.2% | |||
9,099 | HDFC Bank Ltd., ADR | 523,830 | |
11,075 | Infosys Ltd. | 214,850 | |
19,719 | Relaxo Footwears Ltd. | 249,938 | |
44,010 | Reliance Industries Ltd. | 1,492,842 | |
73,395 | Varun Beverages Ltd. | 992,795 | |
TOTAL | 3,474,255 | ||
Indonesia—3.3% | |||
2,261,770 | PT Bank Central Asia | 1,201,533 | |
1,111,100 | PT Vale Indonesia Tbk | 626,378 | |
TOTAL | 1,827,911 | ||
Kazakhstan—0.3% | |||
3,408 | 2 | Kaspi.Kz JSC, GDR | 180,110 |
Kenya—0.1% | |||
175,000 | Safaricom Ltd. | 38,993 | |
Malaysia—2.4% | |||
780,600 | CTOS Digital Bhd | 255,144 | |
815,800 | Frontken Corp. Bhd | 507,568 | |
448,600 | Press Metal Aluminium Holdings Bhd | 566,775 | |
TOTAL | 1,329,487 | ||
Mexico—0.9% | |||
141,643 | Wal-Mart de Mexico SAB de C.V. | 523,807 | |
Nigeria—0.9% | |||
244,033 | Airtel Africa PLC | 476,036 | |
Peru—1.2% | |||
10,662 | Southern Copper Corp. | 658,698 | |
Poland—1.4% | |||
11,058 | 1 | Dino Polska SA | 775,206 |
Saudi Arabia—2.2% | |||
50,266 | 1 | Saudi Arabian Oil Co. (Aramco) | 561,487 |
36,221 | Saudi National Bank | 698,963 | |
TOTAL | 1,260,450 | ||
Singapore—0.6% | |||
3,794 | 1 | Sea Ltd., ADR | 313,612 |
South Africa—2.2% | |||
7,557 | Capitec Bank Holdings Ltd. | 1,088,493 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—continued | |||
South Africa—continued | |||
17,339 | Gold Fields Ltd., ADR | $161,946 | |
TOTAL | 1,250,439 | ||
South Korea—13.7% | |||
2,957 | Ecopro BM Co. Ltd. | 1,201,425 | |
14,378 | Kakao Corp. | 984,389 | |
16,210 | Korea Aerospace Industry | 686,283 | |
6,179 | Samsung Electro-Mechanics Co. | 768,875 | |
40,390 | Samsung Electronics Co. Ltd. | 2,199,515 | |
2,362 | Samsung SDI Co. Ltd. | 1,091,471 | |
9,184 | SK Hynix, Inc. | 798,350 | |
TOTAL | 7,730,308 | ||
Taiwan—14.8% | |||
31,063 | AirTac International Group | 1,011,764 | |
7,522 | ASPEED Technology, Inc. | 596,809 | |
38,525 | Hiwin Technologies Corp. | 297,784 | |
37,704 | MediaTek, Inc. | 1,168,105 | |
12,858 | Momo.com, Inc. | 368,695 | |
4,210 | Silergy Corp. | 434,891 | |
234,385 | Taiwan Semiconductor Manufacturing Co. Ltd | 4,494,368 | |
TOTAL | 8,372,416 | ||
Thailand—1.3% | |||
356,200 | 1 | Airports of Thailand Public Co. Ltd. | 727,111 |
Vietnam—2.7% | |||
245,056 | JSC Bank of Foreign Trade of Vietnam | 833,446 | |
222,390 | Vinhomes Joint Stock Company | 667,046 | |
TOTAL | 1,500,492 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $51,622,091) | 54,089,975 | ||
RIGHTS—0.0% | |||
South Korea—0.0% | |||
166 | Ecopro BM Co. Ltd., Rights (IDENTIFIED COST $0) | 20,730 |
Shares | Value in U.S. Dollars | ||
INVESTMENT COMPANY—8.4% | |||
4,736,240 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.83%3 (IDENTIFIED COST $4,734,038) | $4,734,820 | |
TOTAL INVESTMENT IN SECURITIES—104.6% (IDENTIFIED COST $56,356,129)4 | 58,845,525 | ||
OTHER ASSETS AND LIABILITIES - NET—(4.6)%5 | (2,602,301) | ||
TOTAL NET ASSETS—100% | $56,243,224 |
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | Total of Affiliated Transactions | |
Value as of 5/31/2021 | $219,710 | $2,629,122 | $2,848,832 |
Purchases at Cost | $1,951,759 | $41,327,684 | $43,279,443 |
Proceeds from Sales | $(2,171,469) | $(39,219,962) | $(41,391,431) |
Change in Unrealized Appreciation/Depreciation | NA | $317 | $317 |
Net Realized Gain/(Loss) | NA | $(2,341) | $(2,341) |
Value as of 5/31/2022 | $— | $4,734,820 | $4,734,820 |
Shares Held as of 5/31/2022 | — | 4,736,240 | 4,736,240 |
Dividend Income | $17 | $5,513 | $5,530 |
Gain Distributions Received | $— | $482 | $482 |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Equity Securities: | ||||
Common Stocks | ||||
International | $7,391,390 | $46,698,585 | $— | $54,089,975 |
Rights | — | 20,730 | — | 20,730 |
Investment Company | 4,734,820 | — | — | 4,734,820 |
TOTAL SECURITIES | $12,126,210 | $46,719,315 | $— | $58,845,525 |
ADR | —American Depositary Receipt |
GDR | —Global Depositary Receipt |
JSC | —Joint Stock Company |
(formerly, Class I Shares)
Year Ended May 31, | |||||
2022 | 2021 | 20202 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $20.47 | $12.16 | $11.23 | $13.23 | $11.09 |
Income From Investment Operations: | |||||
Net investment income (loss)3 | 0.11 | (0.03) | (0.00)4 | 0.05 | 0.03 |
Net realized and unrealized gain (loss) | (5.33) | 8.34 | 0.98 | (1.84) | 2.17 |
TOTAL FROM INVESTMENT OPERATIONS | (5.22) | 8.31 | 0.98 | (1.79) | 2.20 |
Less Distributions: | |||||
Distributions from net investment income | — | — | (0.05) | (0.02) | (0.03) |
Distributions from net realized gain | — | — | — | (0.19) | (0.03) |
TOTAL DISTRIBUTIONS | — | — | (0.05) | (0.21) | (0.06) |
Payment by Affiliate3 | — | — | — | (0.00)4,5 | — |
Net Asset Value, End of Period | $15.25 | $20.47 | $12.16 | $11.23 | $13.23 |
Total Return6 | (25.50)% | 68.34% | 8.74% | (13.38)%5 | 19.84% |
Ratios to Average Net Assets: | |||||
Net expenses7 | 0.98% | 0.98% | 1.11% | 1.25% | 1.25% |
Net investment income (loss) | 0.57% | (0.19)% | (0.04)% | 0.43% | 0.26% |
Expense waiver/reimbursement8 | 0.81% | 1.07% | 2.07% | 1.06% | 0.83% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $55,929 | $53,660 | $13,749 | $11,557 | $13,392 |
Portfolio turnover9 | 39% | 13% | 39% | 34% | 36% |
Period Ended 05/31/20221 | |
Net Asset Value, Beginning of Period | $20.80 |
Income From Investment Operations: | |
Net investment income (loss)2 | 0.11 |
Net realized and unrealized gain (loss) | (5.66) |
TOTAL FROM INVESTMENT OPERATIONS | (5.55) |
Less Distributions: | |
Distributions from net investment income | — |
Distributions from net realized gain | — |
TOTAL DISTRIBUTIONS | — |
Net Asset Value, End of Period | $15.25 |
Total Return3 | (26.68)% |
Ratios to Average Net Assets: | |
Net expenses4 | 0.92%5 |
Net investment income | 0.87%5 |
Expense waiver/reimbursement6 | 0.87%5 |
Supplemental Data: | |
Net assets, end of period (000 omitted) | $314 |
Portfolio turnover7 | 39%8 |
May 31, 2022
Assets: | ||
Investment in securities, at value including $4,734,820 of investment in an affiliated holding* (identified cost $56,356,129) | $58,845,525 | |
Cash denominated in foreign currencies (identified cost $44,930) | 44,930 | |
Receivable for shares sold | 210,289 | |
Income receivable | 182,354 | |
Receivable for investments sold | 122,413 | |
TOTAL ASSETS | 59,405,511 | |
Liabilities: | ||
Payable for investments purchased | $2,316,517 | |
Payable for shares redeemed | 642,786 | |
Payable for capital gains taxes withheld | 44,124 | |
Payable for investment adviser fee (Note 5) | 2,898 | |
Payable for administrative fee (Note 5) | 294 | |
Accrued expenses (Note 5) | 155,668 | |
TOTAL LIABILITIES | 3,162,287 | |
Net assets for 3,688,970 shares outstanding | $56,243,224 | |
Net Assets Consists of: | ||
Paid-in capital | $60,408,054 | |
Total distributable earnings (loss) | (4,164,830) | |
TOTAL NET ASSETS | $56,243,224 | |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | ||
Institutional Shares: | ||
Net asset value per share ($55,929,406 ÷ 3,668,389 shares outstanding) no par value, unlimited shares authorized | $15.25 | |
Class R6 Shares: | ||
Net asset value per share ($313,818 ÷ 20,581 shares outstanding) no par value, unlimited shares authorized | $15.25 |
Year Ended May 31, 2022
Investment Income: | |||
Dividends (including $5,513 received from an affiliated holding* and net of foreign taxes withheld of $58,010) | $881,189 | ||
Net income on securities loaned (includes $17 earned from an affiliated holding* related to cash collateral balances) | 5,468 | ||
TOTAL INCOME | 886,657 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $513,510 | ||
Administrative fee (Note 5) | 45,442 | ||
Custodian fees | 108,653 | ||
Transfer agent fees (Note 2) | 57,587 | ||
Directors’/Trustees’ fees (Note 5) | 977 | ||
Auditing fees | 32,999 | ||
Legal fees | 9,157 | ||
Portfolio accounting fees | 136,923 | ||
Share registration costs | 61,797 | ||
Printing and postage | 23,970 | ||
Miscellaneous (Note 5) | 34,895 | ||
TOTAL EXPENSES | 1,025,910 | ||
Waiver and Reimbursements: | |||
Waiver/reimbursement of investment adviser fee (Note 5) | $(433,809) | ||
Reimbursements of other operating expenses (Notes 2 and 5) | (30,252) | ||
TOTAL WAIVER AND REIMBURSEMENTS | (464,061) | ||
Net expenses | 561,849 | ||
Net investment income | $324,808 |
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: | |||
Net realized loss on investments (including net realized loss of $(2,341) on sales of investments in an affiliated holding*) and foreign currency transactions | $(6,221,622) | ||
Realized gain distribution received from affiliated investment company shares* | 482 | ||
Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency (including net change in unrealized appreciation of $317 of investments in an affiliated holding*) | (11,050,702) | ||
Net realized and unrealized gain (loss) on investments and foreign currency transactions | (17,271,842) | ||
Change in net assets resulting from operations | $(16,947,034) |
Year Ended May 31 | 2022 | 2021 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income (loss) | $324,808 | $(54,081) |
Net realized gain (loss) | (6,221,140) | 50,570 |
Net change in unrealized appreciation/depreciation | (11,050,702) | 10,488,988 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | (16,947,034) | 10,485,477 |
Share Transactions: | ||
Proceeds from sale of shares | 54,947,849 | 33,799,621 |
Cost of shares redeemed | (35,417,502) | (4,373,715) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 19,530,347 | 29,425,906 |
Change in net assets | 2,583,313 | 39,911,383 |
Net Assets: | ||
Beginning of period | 53,659,911 | 13,748,528 |
End of period | $56,243,224 | $53,659,911 |
Security | Acquisition Date | Acquisition Cost | Value |
Kaspi.Kz JSC, GDR | 2/17/2022 | $304,233 | $180,110 |
KWG Group Holdings Ltd. | 2/11/2022-3/3/2022 | $849,037 | $533,524 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Institutional Shares | $57,554 | $(22,613) |
Class R6 Shares | 33 | — |
TOTAL | $57,587 | $(22,613) |
Year Ended May 31 | 2022 | 2021 | ||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 3,020,657 | $54,547,124 | 1,756,288 | $33,799,621 |
Shares issued to shareholders in payment of distributions declared | — | — | — | — |
Shares redeemed | (1,974,162) | (35,417,502) | (265,298) | (4,373,715) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 1,046,495 | $19,129,622 | 1,490,990 | $29,425,906 |
Year Ended May 31 | 20221 | 2021 | ||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 20,581 | $400,725 | — | $— |
Shares issued to shareholders in payment of distributions declared | — | — | — | — |
Shares redeemed | — | — | — | — |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | 20,581 | $400,725 | — | $— |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 1,067,076 | $19,530,347 | 1,490,990 | $29,425,906 |
Undistributed ordinary income | $248,811 |
Net unrealized appreciation | $1,953,415 |
Capital loss carryforwards | $(6,367,056) |
Short-Term | Long-Term | Total |
$4,931,076 | $1,435,980 | $6,367,056 |
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 | $41,809,407 |
Sales | $21,302,500 |
July 25, 2022
Beginning Account Value 12/1/2021 | Ending Account Value 05/31/2022 | Expenses Paid During Period1 | |
Actual | |||
Institutional Shares | $1,000.00 | $785.70 | $4.41 |
Class R6 Shares | $1,000.00 | $785.70 | $4.10 |
Hypothetical (assuming a 5% return before expenses) | |||
Institutional Shares | $1,000.00 | $1,020.00 | $4.99 |
Class R6 Shares | $1,000.00 | $1,020.34 | $4.63 |
Institutional Shares | 0.99% |
Class R6 Shares | 0.92% |
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: May 2017 | 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. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2017 | 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; 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; President of some of the Funds in the Federated Hermes Fund Family and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; President and CEO of Passport Research, Ltd.; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Hermes, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. 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 |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Director, KLX Energy Services Holdings, Inc. (oilfield services); former Director of KLX Corp. (aerospace). Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm) and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
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: May 2017 | Principal Occupations: Director or Trustee, Chair of the Audit Committee 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, 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. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor Emerita of Law, 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 (formerly known as CONSOL Energy Inc.). 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 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 to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. 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 (formerly known as CONSOL Energy Inc.). 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, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director, Saint Francis University. |
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 |
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee 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, The Golisano Children’s Museum of Naples, Florida; and Director, Midway Pacific (lumber). |
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, Executive Vice President for Legal Affairs, General Counsel and Secretary to the 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 to the Board of Directors and Assistant General Counsel and Director of Risk Management, 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. |
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 |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant; 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: May 2017 | 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 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: May 2017 | 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: November 2017 | 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: May 2017 | 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. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: May 2017 | 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.
CUSIP 31423A580
Share Class | Ticker | A | PMIEX | C | PIUCX | Institutional | PIUIX | R6 | PEIRX |
Federated Hermes International Equity Fund
A Portfolio of Federated Hermes Adviser Series
1 Year | 5 Years | 10 Years | |
Class A Shares | -20.96% | 4.69% | 8.37% |
Class C Shares | -17.71% | 5.10% | 8.38% |
Institutional Shares | -16.14% | 6.15% | 9.29% |
Class R6 Shares5 | -16.10% | 6.20% | 9.31% |
MSCI ACWI ex USA | -12.41% | 4.42% | 6.39% |
MFLBFA | -11.92% | 3.98% | 6.70% |
Country | Percentage of Total Net Assets2 |
United Kingdom | 12.9% |
Japan | 11.4% |
South Korea | 7.0% |
Canada | 6.8% |
Germany | 6.1% |
France | 5.6% |
Switzerland | 4.2% |
Sweden | 3.7% |
China | 3.5% |
Norway | 3.4% |
Other3 | 27.2% |
Cash Equivalents4 | 8.2% |
Other Assets and Liabilities—Net5 | (0.0)% |
TOTAL | 100% |
Sector Classification | Percentage of Total Net Assets2 |
Consumer Discretionary | 15.1% |
Information Technology | 12.7% |
Materials | 12.5% |
Financials | 12.0% |
Industrials | 10.2% |
Health Care | 10.0% |
Communication Services | 6.0% |
Consumer Staples | 5.4% |
Energy | 4.1% |
Semiconductors & Semiconductor Equipment | 1.4% |
Real Estate | 0.8% |
Utilities | 0.8% |
Technology Hardware Storage & Peripherals | 0.8% |
Cash Equivalents3 | 8.2% |
Other Assets and Liabilities—Net4 | (0.0)% |
TOTAL | 100% |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—45.3% | |||
Belgium—1.3% | |||
54,800 | D’Ieteren Group | $8,581,141 | |
109,412 | Solvay SA | 10,709,985 | |
TOTAL | 19,291,126 | ||
Canada—5.3% | |||
2,174,000 | Lundin Mining Corp. | 19,353,473 | |
209,219 | Magna International, Inc. | 13,576,863 | |
426,115 | Methanex Corp. | 21,058,978 | |
309,300 | Open Text Corp. | 12,676,691 | |
174,292 | Toronto Dominion Bank | 13,319,417 | |
TOTAL | 79,985,422 | ||
Chile—0.8% | |||
614,200 | Antofagasta PLC | 11,471,265 | |
China—0.3% | |||
2,512,000 | Weichai Power Co. Ltd., Class H | 3,869,065 | |
Colombia—1.1% | |||
729,100 | Bancolombia SA | 8,764,672 | |
177,100 | Bancolombia SA, ADR | 7,953,561 | |
TOTAL | 16,718,233 | ||
France—3.1% | |||
145,400 | Ipsos | 7,070,371 | |
97,600 | Michelin, Class B | 12,733,228 | |
275,178 | Publicis Groupe | 15,063,465 | |
126,557 | Vinci SA | 12,210,727 | |
TOTAL | 47,077,791 | ||
Germany—4.8% | |||
149,600 | BASF SE | 8,236,870 | |
720,593 | Deutsche Telekom AG, Class REG | 14,793,651 | |
431,700 | 1 | flatexDEGIRO AG | 6,477,169 |
204,300 | Fresenius SE & Co KGaA | 6,992,233 | |
96,500 | Hannover Rueckversicherung SE | 14,744,076 | |
128,800 | HeidelbergCement AG | 7,479,721 | |
52,500 | Muenchener Rueckversicherungs-Gesellschaft AG | 12,839,760 | |
TOTAL | 71,563,480 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—continued | |||
Greece—0.3% | |||
242,400 | Jumbo SA | $4,030,047 | |
Ireland—1.4% | |||
4,889,054 | 1 | Greencore Group PLC | 6,715,907 |
98,100 | 1 | Jazz Pharmaceuticals PLC | 14,683,608 |
TOTAL | 21,399,515 | ||
Italy—0.1% | |||
1,358,089 | 1 | Trevi Finanziaria SpA | 1,020,822 |
Japan—5.7% | |||
307,300 | Asahi Group Holdings Ltd. | 10,330,128 | |
387,700 | Brother Industries Ltd. | 7,131,244 | |
1,064,700 | Daicel Corp. | 6,851,001 | |
31,500 | Daito Trust Construction Co. Ltd. | 2,779,780 | |
521,400 | Honda Motor Co. Ltd. | 12,954,355 | |
389,300 | KDDI Corp. | 13,552,407 | |
1,827,800 | Marubeni Corp. | 19,159,288 | |
136,900 | Sony Group Corp. | 12,879,978 | |
TOTAL | 85,638,181 | ||
Norway—2.5% | |||
573,244 | 1 | DNB Bank ASA | 11,621,377 |
424,949 | SpareBanken Vest | 4,504,386 | |
529,153 | SpareBank 1 SR-Bank ASA | 6,741,883 | |
274,500 | Yara International ASA | 14,207,526 | |
TOTAL | 37,075,172 | ||
Puerto Rico—1.0% | |||
189,900 | Popular, Inc. | 15,516,729 | |
Russia—0.0% | |||
8,422,100 | 2 | Alrosa AO | 0 |
Singapore—0.8% | |||
572,399 | United Overseas Bank Ltd. | 12,295,548 | |
South Korea—5.5% | |||
60,059 | Hyundai Mobis | 10,581,058 | |
236,500 | Kia Corp. | 16,347,185 | |
1,181,000 | LG Uplus Corp. | 13,202,154 | |
240,030 | Samsung Electronics Co. Ltd. | 13,071,298 | |
423,640 | Shinhan Financial Group Co. Ltd. | 14,722,242 | |
161,000 | SK Hynix, Inc. | 13,995,470 | |
TOTAL | 81,919,407 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—continued | |||
Sweden—2.0% | |||
448,600 | 1 | Duni AB | $4,064,645 |
325,826 | Loomis AB | 8,250,782 | |
960,700 | SKF Ab, Class B | 16,996,346 | |
TOTAL | 29,311,773 | ||
Switzerland—0.9% | |||
157,666 | Novartis AG | 14,313,479 | |
Taiwan—0.8% | |||
2,134,000 | Catcher Technology Co. Ltd. | 12,031,132 | |
Thailand—0.3% | |||
1,564,700 | Tisco Financial Group PLC | 4,195,625 | |
United Kingdom—7.3% | |||
1,075,900 | Amcor PLC | 14,094,290 | |
2,258,187 | 1 | Babcock International Group PLC | 9,612,516 |
371,951 | BELLWAY PLC | 10,960,641 | |
175,710 | Bunzl PLC | 6,130,679 | |
7,477,680 | 1 | Cineworld Group PLC | 2,430,540 |
709,068 | Inchcape PLC | 6,511,025 | |
40,566 | Linde PLC | 13,170,969 | |
688,254 | Mondi PLC, SAF | 13,338,431 | |
146,538 | Mondi PLC, UK | 2,851,576 | |
155,526 | Next PLC | 12,740,026 | |
374,400 | 1 | Nomad Foods Ltd. | 7,813,728 |
6,131,965 | Taylor Wimpey PLC | 10,065,160 | |
TOTAL | 109,719,581 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $578,800,748) | 678,443,393 | ||
WARRANTS—0.0% | |||
Italy—0.0% | |||
17,191 | 1 | Trevi Finanziaria SpA, Warrants (IDENTIFIED COST $1,427,897 ) | 69,291 |
INVESTMENT COMPANIES—54.3% | |||
65,389,264 | Federated Hermes Government Obligations Fund, Premier Shares, 0.70%3 | 65,389,264 | |
19,070,995 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.83%3 | 19,065,274 |
Shares | Value in U.S. Dollars | ||
INVESTMENT COMPANIES—continued | |||
51,145,503 | Federated Hermes International Growth Fund, Institutional Shares | $729,334,879 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $694,923,368) | 813,789,417 | ||
TOTAL INVESTMENT IN SECURITIES—99.6% (IDENTIFIED COST $1,275,152,013)4 | 1,492,302,101 | ||
OTHER ASSETS AND LIABILITIES - NET—0.4%5 | 5,533,433 | ||
TOTAL NET ASSETS—100% | $1,497,835,534 |
Federated Hermes Government Obligations Fund, Premier Shares | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | Federated Hermes International Growth Fund* | Total of Affiliated Transactions | |
Value as of 5/31/2021 | $642,311 | $107,288 | $834,070,761 | $834,820,360 |
Purchases at Cost | $405,344,789 | $271,162,034 | $173,386,457 | $849,893,280 |
Proceeds from Sales | $(340,597,836) | $(252,197,265) | $ (79,000,000) | $(671,795,101) |
Change in Unrealized Appreciation/ Depreciation | N/A | $1,522 | $(214,865,066) | $(214,863,544) |
Net Realized Gain/(Loss) | N/A | $(8,305) | $15,742,727 | $15,734,422 |
Value as of 5/31/2022 | $65,389,264 | $19,065,274 | $729,334,879 | $813,789,417 |
Shares Held as of 5/31/2022 | 65,389,264 | 19,070,995 | 51,145,503 | 135,605,762 |
Dividend Income | $41,196 | $27,259 | $2,212,898 | $2,281,353 |
Gains Distributions Received | $— | $2,823 | $— | $2,823 |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Equity Securities: | ||||
Common Stocks | ||||
International | $153,218,307 | $525,225,086 | $0 | $678,443,393 |
Warrants | ||||
International | 69,291 | — | — | 69,291 |
Investment Companies | 813,789,417 | — | — | 813,789,417 |
TOTAL SECURITIES | $967,077,015 | $525,225,086 | $0 | $1,492,302,101 |
ADR | —American Depositary Receipt |
Year Ended May 31, | |||||
2022 | 2021 | 20202 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $32.75 | $21.95 | $22.13 | $24.57 | $21.70 |
Income From Investment Operations: | |||||
Net investment income3 | 0.22 | 0.12 | 0.09 | 0.24 | 0.25 |
Net realized and unrealized gain (loss) | (5.04) | 10.95 | (0.01) | (2.11) | 2.74 |
TOTAL FROM INVESTMENT OPERATIONS | (4.82) | 11.07 | 0.08 | (1.87) | 2.99 |
Less Distributions: | |||||
Distributions from net investment income | (0.27) | (0.27) | (0.26) | (0.17) | (0.12) |
Distributions from net realized gain | (3.35) | — | — | (0.40) | — |
TOTAL DISTRIBUTIONS | (3.62) | (0.27) | (0.26) | (0.57) | (0.12) |
Payment by Affiliate | — | — | — | 0.004,5 | 0.004,6 |
Net Asset Value, End of Period | $24.31 | $32.75 | $21.95 | $22.13 | $24.57 |
Total Return7 | (16.35)% | 50.59% | 0.22% | (7.43)%5 | 13.86%6 |
Ratios to Average Net Assets: | |||||
Net expenses8 | 0.78% | 1.15% | 1.22% | 1.25% | 1.20%9 |
Net investment income | 0.72% | 0.45% | 0.42% | 1.01% | 1.04%9 |
Expense waiver/reimbursement10 | 0.53% | 0.15% | 0.21% | 0.06% | 0.13% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $26,593 | $47,387 | $39,253 | $58,932 | $68,019 |
Portfolio turnover11 | 24% | 44% | 36% | 28% | 33% |
Year Ended May 31, | |||||
2022 | 2021 | 20202 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $31.12 | $20.87 | $21.12 | $23.50 | $20.81 |
Income From Investment Operations: | |||||
Net investment income (loss)3 | 0.01 | (0.07) | (0.00)4 | 0.08 | 0.10 |
Net realized and unrealized gain (loss) | (4.78) | 10.40 | (0.09) | (2.02) | 2.59 |
TOTAL FROM INVESTMENT OPERATIONS | (4.77) | 10.33 | (0.09) | (1.94) | 2.69 |
Less Distributions: | |||||
Distributions from net investment income | (0.04) | (0.08) | (0.16) | (0.04) | (0.00)4 |
Distributions from net realized gain | (3.35) | — | — | (0.40) | — |
TOTAL DISTRIBUTIONS | (3.39) | (0.08) | (0.16) | (0.44) | (0.00)4 |
Payment by Affiliate | — | — | — | 0.004,5 | 0.004,6 |
Net Asset Value, End of Period | $22.96 | $31.12 | $20.87 | $21.12 | $23.50 |
Total Return7 | (16.97)% | 49.53% | (0.54)% | (8.11)%5 | 13.00%6 |
Ratios to Average Net Assets: | |||||
Net expenses8 | 1.53% | 1.90% | 1.96% | 1.97% | 1.96% |
Net investment income (loss) | 0.04% | (0.28)% | (0.02)% | 0.35% | 0.46% |
Expense waiver/reimbursement9 | 0.53% | 0.17% | 0.36% | 0.55% | 0.07% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $4,355 | $6,032 | $4,978 | $5,895 | $4,909 |
Portfolio turnover10 | 24% | 44% | 36% | 28% | 33% |
(formerly, Class I Shares)
Year Ended May 31, | ||||||
2022 | 2021 | 20202 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $33.10 | $22.17 | $22.34 | $24.79 | $21.90 | |
Income From Investment Operations: | ||||||
Net investment income (loss)3 | 0.33 | 0.20 | 0.24 | 0.30 | 0.32 | |
Net realized and unrealized gain (loss) | (5.12) | 11.07 | (0.10) | (2.12) | 2.76 | |
TOTAL FROM INVESTMENT OPERATIONS | (4.79) | 11.27 | 0.14 | (1.82) | 3.08 | |
Less Distributions: | ||||||
Distributions from net investment income | (0.37) | (0.34) | (0.31) | (0.23) | (0.19) | |
Distributions from net realized gain | (3.35) | — | — | (0.40) | — | |
TOTAL DISTRIBUTIONS | (3.72) | (0.34) | (0.31) | (0.63) | (0.19) | |
Payment by Affiliate | — | — | — | 0.004,5 | 0.004,6 | |
Net Asset Value, End of Period | $24.59 | $33.10 | $22.17 | $22.34 | $24.79 | |
Total Return7 | (16.14)% | 51.01% | 0.47% | (7.12)%5 | 14.07%6 | |
Ratios to Average Net Assets: | ||||||
Net expenses8 | 0.53% | 0.90% | 0.96% | 0.94% | 0.97% | |
Net investment income | 1.10% | 0.71% | 1.04% | 1.28% | 1.35% | |
Expense waiver/reimbursement9 | 0.55% | 0.18% | 0.07% | 0.00%10 | 0.07% | |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $959,639 | $1,034,047 | $769,635 | $939,068 | $1,334,669 | |
Portfolio turnover11 | 24% | 44% | 36% | 28% | 33% |
Year Ended May 31, | Period Ended 5/31/20193 | |||
2022 | 2021 | 20202 | ||
Net Asset Value, Beginning of Period | $33.11 | $22.18 | $22.34 | $25.51 |
Income From Investment Operations: | ||||
Net investment income (loss)4 | 0.33 | 0.21 | 0.24 | 0.39 |
Net realized and unrealized gain (loss) | (5.11) | 11.07 | (0.08) | (2.92) |
TOTAL FROM INVESTMENT OPERATIONS | (4.78) | 11.28 | 0.16 | (2.53) |
Less Distributions: | ||||
Distributions from net investment income | (0.38) | (0.35) | (0.32) | (0.24) |
Distributions from net realized gain | (3.35) | — | — | (0.40) |
TOTAL DISTRIBUTIONS | (3.73) | (0.35) | (0.32) | (0.64) |
Payment by Affiliate | — | — | — | 0.005,6 |
Net Asset Value, End of Period | $24.60 | $33.11 | $22.18 | $22.34 |
Total Return7 | (16.10)% | 51.04% | 0.56% | (9.17)%6 |
Ratios to Average Net Assets: | ||||
Net expenses8 | 0.49% | 0.86% | 0.90% | 0.89%9 |
Net investment income | 1.09% | 0.75% | 1.07% | 1.76%9 |
Expense waiver/reimbursement10 | 0.50% | 0.14% | 0.10% | 0.02%9 |
Supplemental Data: | ||||
Net assets, end of period (000 omitted) | $507,249 | $676,137 | $502,786 | $595,000 |
Portfolio turnover11 | 24% | 44% | 36% | 28%12 |
May 31, 2022
Assets: | ||
Investment in securities, at value including $813,789,417 of investment in affiliated holdings* (identified cost $1,275,152,013) | $1,492,302,101 | |
Income receivable | 4,876,533 | |
Receivable for shares sold | 1,818,145 | |
Due from broker | 58,617 | |
TOTAL ASSETS | 1,499,055,396 | |
Liabilities: | ||
Payable for shares redeemed | $497,866 | |
Bank overdraft | 280,449 | |
Payable for investments purchased | 12,563 | |
Payable for custodian fees | 168,711 | |
Payable for portfolio accounting fees | 106,125 | |
Payable for transfer agent fee | 79,186 | |
Payable for investment adviser fee (Note 5) | 18,180 | |
Payable for other service fees (Notes 2 and 5) | 7,764 | |
Payable for administrative fee (Note 5) | 3,456 | |
Payable for distribution services fee (Note 5) | 2,695 | |
Accrued expenses (Note 5) | 42,867 | |
TOTAL LIABILITIES | 1,219,862 | |
Net assets for 60,926,841 shares outstanding | $1,497,835,534 | |
Net Assets Consists of: | ||
Paid-in capital | $1,214,786,028 | |
Total distributable earnings (loss) | 283,049,506 | |
TOTAL NET ASSETS | $1,497,835,534 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | ||
Class A Shares: | ||
Net asset value per share ($26,592,770 ÷ 1,093,738 shares outstanding) no par value, unlimited shares authorized | $24.31 | |
Offering price per share (100/94.50 of $24.31) | $25.72 | |
Redemption proceeds per share | $24.31 | |
Class C Shares: | ||
Net asset value per share ($4,355,298 ÷ 189,715 shares outstanding) no par value, unlimited shares authorized | $22.96 | |
Offering price per share | $22.96 | |
Redemption proceeds per share (99.00/100 of $22.96) | $22.73 | |
Institutional Shares: | ||
Net asset value per share ($959,638,548 ÷ 39,025,105 shares outstanding) no par value, unlimited shares authorized | $24.59 | |
Offering price per share | $24.59 | |
Redemption proceeds per share | $24.59 | |
Class R6 Shares: | ||
Net asset value per share ($507,248,918 ÷ 20,618,283 shares outstanding) no par value, unlimited shares authorized | $24.60 | |
Offering price per share | $24.60 | |
Redemption proceeds per share | $24.60 |
Year Ended May 31, 2022
Investment Income: | ||||
Dividends (including $2,281,353 received from affiliated holdings* and net of foreign taxes withheld of $3,695,444) | $27,048,768 | |||
Expenses: | ||||
Investment adviser fee (Note 5) | $14,300,056 | |||
Administrative fee (Note 5) | 1,316,755 | |||
Custodian fees | 376,303 | |||
Transfer agent fees (Note 2) | 1,020,441 | |||
Directors’/Trustees’ fees (Note 5) | 9,861 | |||
Auditing fees | 32,999 | |||
Legal fees | 18,388 | |||
Distribution services fee (Note 5) | 40,265 | |||
Other service fees (Notes 2 and 5) | 109,697 | |||
Portfolio accounting fees | 207,628 | |||
Share registration costs | 114,209 | |||
Printing and postage | 63,690 | |||
Miscellaneous (Note 5) | 56,075 | |||
TOTAL EXPENSES | 17,666,367 | |||
Waiver and Reimbursements: | ||||
Waiver/reimbursement of investment adviser fee (Note 5) | $(8,458,246) | |||
Reimbursement of other operating expenses (Notes 2 and 5) | (445,513) | |||
TOTAL WAIVER AND REIMBURSEMENTS | (8,903,759) | |||
Net expenses | 8,762,608 | |||
Net investment income | $18,286,160 |
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: | ||||
Net realized gain on investments (including net realized gain of $15,734,422 on sales of investments in affiliated holdings*) and foreign currency transactions | $82,048,343 | |||
Realized gain distribution from affiliated investment company shares* | 2,823 | |||
Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency (including net change in unrealized appreciation of $(214,863,544) of investments in affiliated holdings*) | (379,410,106) | |||
Net realized and unrealized gain (loss) on investments and foreign currency transactions | (297,358,940) | |||
Change in net assets resulting from operations | $(279,072,780) |
Year Ended May 31 | 2022 | 2021 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $18,286,160 | $11,180,540 |
Net realized gain | 82,051,166 | 196,337,895 |
Net change in unrealized appreciation/depreciation | (379,410,106) | 423,764,341 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | (279,072,780) | 631,282,776 |
Distributions to Shareholders: | ||
Class A Shares | (4,467,391) | (431,117) |
Class C Shares | (615,379) | (15,858) |
Institutional Shares | (113,237,765) | (10,555,509) |
Class R6 Shares | (72,339,031) | (7,446,518) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (190,659,566) | (18,449,002) |
Share Transactions: | ||
Proceeds from sale of shares | 456,730,803 | 205,427,139 |
Net asset value of shares issued to shareholders in payment of distributions declared | 150,937,299 | 13,568,737 |
Cost of shares redeemed | (403,703,254) | (384,878,170) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 203,964,848 | (165,882,294) |
Change in net assets | (265,767,498) | 446,951,480 |
Net Assets: | ||
Beginning of period | 1,763,603,032 | 1,316,651,552 |
End of period | $1,497,835,534 | $1,763,603,032 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $34,498 | $(11,184) |
Class C Shares | 4,488 | (1,553) |
Institutional Shares | 927,877 | (432,776) |
Class R6 Shares | 53,578 | — |
TOTAL | $1,020,441 | $(445,513) |
Other Service Fees Incurred | |
Class A Shares | $96,597 |
Class C Shares | 13,100 |
TOTAL | $109,697 |
Year Ended May 31 | 2022 | 2021 | ||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 228,662 | $6,727,692 | 226,806 | $6,140,114 |
Shares issued to shareholders in payment of distributions declared | 144,485 | 4,130,821 | 13,062 | 385,718 |
Shares redeemed | (726,370) | (21,357,485) | (581,309) | (15,729,197) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | (353,223) | $(10,498,972) | (341,441) | $(9,203,365) |
Year Ended May 31 | 2022 | 2021 | ||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 16,614 | $470,754 | 12,135 | $343,497 |
Shares issued to shareholders in payment of distributions declared | 22,299 | 603,854 | 552 | 15,526 |
Shares redeemed | (43,060) | (1,191,957) | (57,280) | (1,455,497) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (4,147) | $(117,349) | (44,593) | $(1,096,474) |
Year Ended May 31 | 2022 | 2021 | ||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 13,606,134 | $389,109,819 | 5,255,830 | $154,845,638 |
Shares issued to shareholders in payment of distributions declared | 3,719,123 | 107,445,465 | 332,987 | 9,926,333 |
Shares redeemed | (9,543,096) | (285,441,811) | (9,055,863) | (257,699,566) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 7,782,161 | $211,113,473 | (3,467,046) | $(92,927,595) |
Year Ended May 31 | 2022 | 2021 | ||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 2,049,213 | $60,422,538 | 1,572,326 | $44,097,890 |
Shares issued to shareholders in payment of distributions declared | 1,341,078 | 38,757,159 | 108,691 | 3,241,160 |
Shares redeemed | (3,192,008) | (95,712,001) | (3,927,983) | (109,993,910) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | 198,283 | $3,467,696 | (2,246,966) | $(62,654,860) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 7,623,074 | $203,964,848 | (6,100,046) | $(165,882,294) |
2022 | 2021 | |
Ordinary income1 | $53,995,735 | $18,449,002 |
Long-term capital gains | $136,663,831 | $— |
Net unrealized appreciation | $211,710,317 |
Undistributed long-term capital gains | $71,339,189 |
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 | $40,265 |
Purchases | $398,089,263 |
Sales | $425,777,855 |
July 25, 2022
Beginning Account Value 12/1/2021 | Ending Account Value 5/31/2022 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $875.50 | $3.652 |
Class C Shares | $1,000 | $872.30 | $7.143 |
Institutional Shares | $1,000 | $876.70 | $2.484 |
Class R6 Shares | $1,000 | $876.90 | $2.295 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,021.04 | $3.932 |
Class C Shares | $1,000 | $1,017.30 | $7.703 |
Institutional Shares | $1,000 | $1,022.29 | $2.674 |
Class R6 Shares | $1,000 | $1,022.49 | $2.475 |
Class A Shares | 0.78% |
Class C Shares | 1.53% |
Institutional Shares | 0.53% |
Class R6 Shares | 0.49% |
1 Year | 5 Year | Start of Performance4 | |
Institutional Shares | -20.70% | 8.73% | 11.12% |
Class R6 Shares5 | -26.04% | 8.73% | 11.12% |
MSCI Index | -18.91% | 5.22% | 8.18% |
MFLGFA | -19.91% | 5.46% | 7.77% |
Country | Percentage of Total Net Assets |
United Kingdom | 11.8% |
Japan | 11.6% |
China | 6.7% |
Switzerland | 6.6% |
France | 5.1% |
Netherlands | 4.2% |
Taiwan | 3.7% |
Sweden | 3.5% |
Brazil | 3.1% |
South Korea | 3.1% |
Canada | 2.9% |
Germany | 2.8% |
Italy | 2.8% |
India | 2.5% |
Singapore | 2.5% |
Ireland | 2.2% |
Israel | 2.2% |
Norway | 2.1% |
Hong Kong | 1.7% |
Denmark | 1.4% |
Argentina | 1.3% |
Thailand | 1.2% |
Peru | 1.2% |
Vietnam | 1.1% |
Australia | 1.1% |
Poland | 1.1% |
Belgium | 1.0% |
South Africa | 1.0% |
Other2 | 4.2% |
Securities Lending Collateral3 | 1.1% |
Cash Equivalents4 | 4.1% |
Other Assets and Liabilities—Net5 | (0.9)% |
TOTAL | 100% |
Sector Classification | Percentage of Total Net Assets |
Information Technology | 20.9% |
Health Care | 15.6% |
Consumer Discretionary | 12.4% |
Industrials | 10.4% |
Energy | 8.5% |
Consumer Staples | 7.8% |
Financials | 7.3% |
Materials | 6.1% |
Communication Services | 3.8% |
Utilities | 1.6% |
Real Estate | 1.3% |
Securities Lending Collateral2 | 1.1% |
Cash Equivalents3 | 4.1% |
Other Assets and Liabilities—Net4 | (0.9)% |
TOTAL | 100% |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—94.7% | |||
Argentina—1.3% | |||
29,442 | 1 | Globant S.A. | $5,579,553 |
5,154 | 1 | MercadoLibre, Inc. | 4,050,425 |
TOTAL | 9,629,978 | ||
Australia—1.1% | |||
279,725 | Wisetech Global Ltd. | 8,392,560 | |
Austria—0.8% | |||
60,218 | Verbund AG | 5,990,086 | |
Belgium—1.0% | |||
24,904 | 1 | Argenx SE, ADR | 7,702,807 |
Brazil—3.1% | |||
1,331,411 | 1 | 3R Petroleum Oleo e Gas S.A. | 13,657,150 |
1,403,245 | Petroleo Brasileiro S.A. | 9,820,397 | |
TOTAL | 23,477,547 | ||
Canada—2.9% | |||
249,763 | 1 | Aritzia, Inc. | 7,290,390 |
208,321 | Boralex, Inc., Class A | 6,359,073 | |
28,385 | 1 | Lululemon Athletica, Inc. | 8,308,006 |
TOTAL | 21,957,469 | ||
Chile—0.9% | |||
64,696 | 1 | Sociedad Quimica Y Minera de Chile, ADR | 6,868,774 |
China—6.7% | |||
667,281 | 1 | Alibaba Group Holding Ltd. | 8,043,407 |
561,000 | Ganfeng Lithium Co. Ltd. | 7,134,508 | |
916,862 | GoerTek, Inc. | 5,600,921 | |
15,278 | 1 | JD.com, Inc. | 431,852 |
4,720,000 | 1,2 | KWG Group Holdings Ltd. | 1,457,311 |
360,744 | Tencent Holdings Ltd. | 16,626,271 | |
737,957 | 1 | Wuxi Biologics (Cayman) Inc. | 5,376,140 |
3,880,000 | Zijin Mining Group Co. Ltd. | 5,225,364 | |
TOTAL | 49,895,774 | ||
Denmark—1.4% | |||
267,960 | 1 | Alk-Abello A/S | 5,343,899 |
121,559 | GN Store Nord A/S | 4,788,807 | |
TOTAL | 10,132,706 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—continued | |||
Finland—0.9% | |||
138,744 | Neste Oyj | $6,376,837 | |
France—5.1% | |||
195,140 | Dassault Systemes S.A. | 8,220,408 | |
15,511 | LVMH Moet Hennessy Louis Vuitton S.A. | 9,975,044 | |
114,021 | Sanofi, ADR | 6,071,618 | |
15,488 | Sartorius Stedim Biotech | 5,350,667 | |
25,655 | Teleperformance | 8,515,923 | |
TOTAL | 38,133,660 | ||
Germany—1.8% | |||
139,488 | 1 | Friedrich Vorwerk Group SE | 4,466,301 |
7,348 | Rational AG | 4,773,101 | |
41,817 | SAP SE, ADR | 4,175,009 | |
TOTAL | 13,414,411 | ||
Hong Kong—1.7% | |||
774,237 | AIA Group Ltd. | 7,919,412 | |
352,000 | Techtronic Industries Co. | 4,565,725 | |
TOTAL | 12,485,137 | ||
India—2.5% | |||
82,070 | HDFC Bank Ltd., ADR | 4,724,770 | |
409,942 | Reliance Industries Ltd. | 13,905,440 | |
TOTAL | 18,630,210 | ||
Ireland—2.2% | |||
39,637 | 1 | ICON PLC | 8,870,364 |
96,251 | Kingspan Group PLC | 7,924,685 | |
TOTAL | 16,795,049 | ||
Israel—2.2% | |||
45,321 | 1 | CyberArk Software Ltd. | 6,295,087 |
37,131 | 1 | Solaredge Technologies, Inc. | 10,128,965 |
TOTAL | 16,424,052 | ||
Italy—2.8% | |||
891,773 | Davide Campari-Milano NV | 9,527,086 | |
494,223 | 1 | Infrastrutture Wireless Italiane SPA | 5,502,239 |
173,975 | Tenaris S.A., ADR | 5,800,327 | |
TOTAL | 20,829,652 | ||
Japan—11.6% | |||
126,500 | Denso Corp. | 7,702,210 | |
78,341 | Hoya Corp. | 8,362,453 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—continued | |||
Japan—continued | |||
28,217 | Keyence Corp. | $11,253,756 | |
44,812 | Lasertec Corp. | 6,534,307 | |
171,350 | Murata Manufacturing Co. Ltd. | 11,040,557 | |
116,112 | Nidec Corp. | 7,791,228 | |
589,708 | Olympus Corp. | 12,288,578 | |
992,500 | 1 | Renesas Electronics Corp. | 11,651,636 |
19,672 | SMC Corp. | 10,125,320 | |
TOTAL | 86,750,045 | ||
Kenya—0.0% | |||
1,465,200 | Safaricom Ltd. | 326,474 | |
Netherlands—4.2% | |||
99,378 | 1 | Alfen Beheer B.V. | 10,730,194 |
24,327 | ASML Holding N.V., ADR | 14,019,407 | |
67,958 | Heineken NV | 6,851,735 | |
TOTAL | 31,601,336 | ||
Nigeria—0.8% | |||
3,152,328 | Airtel Africa PLC | 6,149,259 | |
Norway—2.1% | |||
227,467 | 3 | Aker BP ASA | 9,752,041 |
287,060 | Tomra Systems ASA | 5,849,311 | |
TOTAL | 15,601,352 | ||
Peru—1.2% | |||
139,886 | Southern Copper Corp. | 8,642,157 | |
Poland—1.1% | |||
119,488 | 1 | Dino Polska S.A. | 8,376,543 |
Saudi Arabia—0.8% | |||
302,026 | Saudi National Bank | 5,828,245 | |
Singapore—2.5% | |||
842,188 | DBS Group Holdings Ltd. | 18,975,886 | |
South Africa—1.0% | |||
775,026 | Gold Fields Ltd. | 7,292,142 | |
South Korea—3.1% | |||
246,969 | KakaoBank Corp. | 8,083,787 | |
32,304 | Samsung SDI Co. Ltd. | 14,927,551 | |
TOTAL | 23,011,338 | ||
Sweden—3.5% | |||
115,768 | 2 | MIPS AB | 7,739,872 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—continued | |||
Sweden—continued | |||
817,315 | Swedish Match AB | $8,453,173 | |
205,415 | Vitrolife AB | 6,086,840 | |
169,134 | 1 | Xvivo Perfusion AB | 4,252,402 |
TOTAL | 26,532,287 | ||
Switzerland—6.6% | |||
181,789 | Alcon, Inc. | 13,585,092 | |
4,507 | Barry Callebaut AG | 9,903,093 | |
126,110 | Nestle S.A. | 15,431,253 | |
37,911 | Sika AG | 10,501,071 | |
TOTAL | 49,420,509 | ||
Taiwan—3.7% | |||
173,000 | MediaTek, Inc. | 5,359,702 | |
234,191 | Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 22,318,402 | |
TOTAL | 27,678,104 | ||
Thailand—1.2% | |||
4,336,800 | 1 | Airports of Thailand Public Co. Ltd. | 8,852,712 |
United Kingdom—11.8% | |||
172,217 | Ashtead Group PLC | 9,024,612 | |
423,197 | AstraZeneca PLC, ADR | 28,134,136 | |
1,037,879 | Burford Capital Ltd. | 9,164,472 | |
549,209 | Compass Group PLC | 12,318,327 | |
1,145,948 | 1 | Darktrace PLC | 5,301,589 |
56,720 | 1 | Endava PLC, ADR | 5,722,481 |
501,421 | 1 | Entain PLC | 9,251,229 |
155,733 | 1 | InterContinental Hotels Group PLC | 9,704,127 |
TOTAL | 88,620,973 | ||
Vietnam—1.1% | |||
2,826,133 | Vinhomes Joint Stock Company | 8,476,830 | |
TOTAL COMMON STOCKS (IDENTIFIED COST $563,076,797) | 709,272,901 | ||
PREFERRED STOCK—1.0% | |||
Germany—1.0% | |||
95,329 | Porsche Automobil Holding SE, Pfd. (IDENTIFIED COST $10,892,573) | 7,796,191 | |
INVESTMENT COMPANIES—5.2% | |||
7,886,930 | Federated Hermes Government Obligations Fund, Premier Shares, 0.70%4 | 7,886,930 |
Shares | Value in U.S. Dollars | ||
INVESTMENT COMPANIES—continued | |||
30,913,668 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.83%4 | $30,904,393 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $38,789,097) | 38,791,323 | ||
TOTAL INVESTMENT IN SECURITIES—100.9% (IDENTIFIED COST $612,758,467)5 | 755,860,415 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.9)%6 | (6,461,860) | ||
TOTAL NET ASSETS—100% | $749,398,555 |
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | Total of Affiliated Transactions | |
Value as of 5/31/2021 | $15,738,628 | $3,549,269 | $19,287,897 |
Purchases at Cost | $50,948,599 | $334,589,851 | $385,538,450 |
Proceeds from Sales | $(58,800,297) | $(307,217,470) | $(366,017,767) |
Change in Unrealized Appreciation/Depreciation | N/A | $2,219 | $2,219 |
Net Realized Gain/(Loss) | N/A | (19,476) | (19,476) |
Value as of 5/31/2022 | $7,886,930 | $30,904,393 | $38,791,323 |
Shares Held as of 5/31/2022 | $7,886,930 | 30,913,668 | 38,800,598 |
Dividend Income | $2,807 | $38,732 | $41,539 |
Gain Distributions Received | $— | $471 | $471 |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Equity Securities: | ||||
Common Stocks | ||||
International | $217,288,862 | $491,984,039 | $— | $709,272,901 |
Preferred Stock | ||||
International | — | 7,796,191 | — | 7,796,191 |
Investment Companies | 38,791,323 | — | — | 38,791,323 |
TOTAL SECURITIES | $256,080,185 | $499,780,230 | $— | $755,860,415 |
ADR | —American Depositary Receipt |
Year Ended May 31, | |||||
2022 | 2021 | 20202 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $18.70 | $13.02 | $11.87 | $14.79 | $12.59 |
Income From Investment Operations: | |||||
Net investment income3 | 0.08 | 0.09 | 0.03 | 0.08 | 0.06 |
Net realized and unrealized gain (loss) | (3.80) | 6.39 | 1.73 | (1.28) | 2.32 |
TOTAL FROM INVESTMENT OPERATIONS | (3.72) | 6.48 | 1.76 | (1.20) | 2.38 |
Less Distributions: | |||||
Distributions from net investment income | (0.05) | (0.01) | (0.08) | (0.06) | (0.07) |
Distributions from net realized gains | (0.67) | (0.79) | (0.53) | (1.67) | (0.11) |
TOTAL DISTRIBUTIONS | (0.72) | (0.80) | (0.61) | (1.73) | (0.18) |
Payment by Affiliate4 | — | — | — | 0.01 | — |
Net Asset Value, End of Period | $14.26 | $18.70 | $13.02 | $11.87 | $14.79 |
Total Return5 | (20.70)% | 50.28% | 14.78% | (6.61)%4 | 18.97% |
Ratios to Average Net Assets: | |||||
Net expenses6 | 0.84% | 0.84% | 0.85% | 0.85% | 0.85% |
Net investment income | 0.47% | 0.51% | 0.21% | 0.58% | 0.44% |
Expense waiver/reimbursement7 | 0.09% | 0.36% | 5.10% | 2.54% | 1.73% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $749,120 | $835,694 | $5,094 | $5,412 | $6,199 |
Portfolio turnover8 | 47% | 89% | 70% | 54% | 64% |
Period Ended 5/31/20221 | |
Net Asset Value, Beginning of Period | $20.05 |
Income From Investment Operations: | |
Net investment income2 | 0.12 |
Net realized and unrealized gain (loss) | (5.19) |
TOTAL FROM INVESTMENT OPERATIONS | (5.07) |
Less Distributions: | |
Distributions from net investment income | (0.05) |
Distributions from net realized gains | (0.67) |
TOTAL DISTRIBUTIONS | (0.72) |
Net Asset Value, End of Period | $14.26 |
Total Return3 | (26.04)% |
Ratios to Average Net Assets: | |
Net expenses4 | 0.83%5 |
Net investment income | 0.92%5 |
Expense waiver/reimbursement6 | 0.12%5 |
Supplemental Data: | |
Net assets, end of period (000 omitted) | $279 |
Portfolio turnover7 | 47%8 |
May 31, 2022
Assets: | ||
Investment in securities, at value including $7,641,393 of securities loaned and $38,791,323 of investment in affiliated holdings* (identified cost $612,758,467) | $755,860,415 | |
Cash denominated in foreign currencies (identified cost $541,199) | 541,674 | |
Cash | 91,050 | |
Receivable for investments sold | 9,336,812 | |
Income receivable | 3,435,159 | |
Receivable for shares sold | 69,783 | |
TOTAL ASSETS | 769,334,893 | |
Liabilities: | ||
Payable for investments purchased | $11,364,981 | |
Payable for collateral due to broker for securities lending | 7,886,930 | |
Payable for capital gains taxes withheld | 217,509 | |
Payable for shares redeemed | 3,042 | |
Payable for investment adviser fee (Note 5) | 12,794 | |
Payable for administrative fee (Note 5) | 1,842 | |
Accrued expenses (Note 5) | 449,240 | |
TOTAL LIABILITIES | 19,936,338 | |
Net assets for 52,566,013 shares outstanding | $749,398,555 | |
Net Assets Consists of: | ||
Paid-in capital | $597,231,538 | |
Total distributable earnings (loss) | 152,167,017 | |
TOTAL NET ASSETS | $749,398,555 | |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | ||
Institutional Shares: | ||
Net asset value per share ($749,119,868 ÷ 52,546,472 shares outstanding) no par value, unlimited shares authorized | $14.26 | |
Class R6 Shares: | ||
Net asset value per share ($278,687 ÷ 19,541 shares outstanding) no par value, unlimited shares authorized | $14.26 |
Year Ended May 31, 2022
Investment Income: | |||
Dividends (including $38,732 received from an affiliated holding* and net of foreign taxes withheld of $763,663) | $10,879,613 | ||
Net income on securities loaned (includes $2,807 earned from an affiliated holding* related to cash collateral balances) (Note 2) | 31,160 | ||
TOTAL INCOME | 10,910,773 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $6,257,876 | ||
Administrative fee (Note 5) | 653,592 | ||
Custodian fees | 475,819 | ||
Transfer agent fees (Note 2) | 60,606 | ||
Directors’/Trustees’ fees (Note 5) | 4,174 | ||
Auditing fees | 32,999 | ||
Legal fees | 9,516 | ||
Portfolio accounting fees | 158,850 | ||
Share registration costs | 45,677 | ||
Printing and postage | 21,628 | ||
Miscellaneous (Note 5) | 47,280 | ||
TOTAL EXPENSES | 7,768,017 | ||
Waiver/reimbursement of investment adviser fee (Note 5) | (775,704) | ||
Net expenses | 6,992,313 | ||
Net investment income | 3,918,460 | ||
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: | |||
Net realized gain on investments (including net realized loss of $(19,476) on sales of investments in an affiliated holding*) and foreign currency transactions | 33,513,810 | ||
Realized gain distribution from affiliated investment company shares* | 471 | ||
Net change in unrealized appreciation of investments, certain receivables and translation of assets and liabilities in foreign currency (including net change in unrealized appreciation of $2,219 of investments in an affiliated holding*) | (208,845,586) | ||
Net realized and unrealized gain (loss) on investments and foreign currency transactions | (175,331,305) | ||
Change in net assets resulting from operations | $(171,412,845) |
Year Ended May 31 | 2022 | 2021 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $3,918,460 | $462,773 |
Net realized gain | 33,514,281 | 4,782,273 |
Net change in unrealized appreciation/depreciation | (208,845,586) | 350,056,166 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | (171,412,845) | 355,301,212 |
Distributions to Shareholders: | ||
Institutional Shares | (31,306,879) | (344,222) |
Class R6 Shares | (9,902) | — |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (31,316,781) | (344,222) |
Share Transactions: | ||
Proceeds from sale of shares | 170,794,304 | 533,259,568 |
Net asset value of shares issued to shareholders in payment of distributions declared | 31,309,146 | 344,222 |
Cost of shares redeemed | (85,669,402) | (57,960,288) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 116,434,048 | 475,643,502 |
Change in net assets | (86,295,578) | 830,600,492 |
Net Assets: | ||
Beginning of period | 835,694,133 | 5,093,641 |
End of period | $749,398,555 | $835,694,133 |
Security | Acquisition Date | Acquisition Cost | Value |
KWG Group Holdings Ltd. | 2/16/2022 | $2,139,751 | $1,457,311 |
MIPS AB | 10/2/2019 | $2,047,532 | $7,739,872 |
Transfer Agent Fees Incurred | |
Institutional Shares | $60,595 |
Class R6 Shares | 11 |
TOTAL | $60,606 |
Market Value of Securities Loaned | Collateral Received |
$7,641,393 | $7,886,930 |
Year Ended May 31 | 2022 | 2021 | ||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 10,647,072 | $170,441,751 | 47,422,997 | $533,259,568 |
Shares issued to shareholders in payment of distributions declared | 1,722,697 | 31,301,413 | 19,909 | 344,222 |
Shares redeemed | (4,513,741) | (85,669,402) | (3,143,660) | (57,960,288) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 7,856,028 | $116,073,762 | 44,299,246 | $475,643,502 |
Period Ended May 31 | 20221 | 2021 | ||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 19,116 | $352,553 | — | $— |
Shares issued to shareholders in payment of distributions declared | 425 | 7,733 | — | — |
Shares redeemed | — | — | — | — |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | 19,541 | $360,286 | — | — |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 7,875,569 | $116,434,048 | 44,299,246 | $475,643,502 |
2022 | 2021 | |
Ordinary income | $3,150,889 | $3,136 |
Long-term capital gain | $28,165,892 | $341,086 |
Undistributed ordinary income | $6,260,349 |
Undistributed long-term capital gains | $5,668,336 |
Net unrealized appreciation | $140,238,332 |
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 | $439,725,378 |
Sales | $378,167,040 |
July 25, 2022
Beginning Account Value 12/1/2021 | Ending Account Value 5/31/2022 | Expenses Paid During Period1 | |
Actual: | |||
Institutional Shares | $1,000.00 | $787.10 | $3.74 |
Class R6 Shares | $1,000.00 | $786.70 | $3.74 |
Hypothetical (assuming a 5% return before expenses): | |||
Institutional Shares | $1,000.00 | $1,020.74 | $4.23 |
Class R6 Shares | $1,000.00 | $1,020.74 | $4.23 |
Institutional Shares | 0.84% |
Class R6 Shares | 0.84% |
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: May 2017 | 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. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2017 | 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; 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; President of some of the Funds in the Federated Hermes Fund Family and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; President and CEO of Passport Research, Ltd.; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Hermes, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. 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 |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Director, KLX Energy Services Holdings, Inc. (oilfield services); former Director of KLX Corp. (aerospace). Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm) and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
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: May 2017 | Principal Occupations: Director or Trustee, Chair of the Audit Committee 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, 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. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor Emerita of Law, 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 (formerly known as CONSOL Energy Inc.). 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 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 to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. 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 (formerly known as CONSOL Energy Inc.). 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, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director, Saint Francis University. |
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 |
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee 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, The Golisano Children’s Museum of Naples, Florida; and Director, Midway Pacific (lumber). |
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, Executive Vice President for Legal Affairs, General Counsel and Secretary to the 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 to the Board of Directors and Assistant General Counsel and Director of Risk Management, 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. |
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 |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant; 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: May 2017 | 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 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: May 2017 | 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: November 2017 | 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: May 2017 | 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. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: May 2017 | 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.
CUSIP 31423A697
CUSIP 31423A689
CUSIP 31423A671
Share Class | Ticker | Institutional | PIGDX | R6 | REIGX |
Federated Hermes International Growth Fund
A Portfolio of Federated Hermes Adviser Series
1 Year | 5 Year | Start of Performance4 | |
Institutional Shares | -20.70% | 8.73% | 11.12% |
Class R6 Shares5 | -26.04% | 8.73% | 11.12% |
MSCI Index | -18.91% | 5.22% | 8.18% |
MFLGFA | -19.91% | 5.46% | 7.77% |
Country | Percentage of Total Net Assets |
United Kingdom | 11.8% |
Japan | 11.6% |
China | 6.7% |
Switzerland | 6.6% |
France | 5.1% |
Netherlands | 4.2% |
Taiwan | 3.7% |
Sweden | 3.5% |
Brazil | 3.1% |
South Korea | 3.1% |
Canada | 2.9% |
Germany | 2.8% |
Italy | 2.8% |
India | 2.5% |
Singapore | 2.5% |
Ireland | 2.2% |
Israel | 2.2% |
Norway | 2.1% |
Hong Kong | 1.7% |
Denmark | 1.4% |
Argentina | 1.3% |
Thailand | 1.2% |
Peru | 1.2% |
Vietnam | 1.1% |
Australia | 1.1% |
Poland | 1.1% |
Belgium | 1.0% |
South Africa | 1.0% |
Other2 | 4.2% |
Securities Lending Collateral3 | 1.1% |
Cash Equivalents4 | 4.1% |
Other Assets and Liabilities—Net5 | (0.9)% |
TOTAL | 100% |
Sector Classification | Percentage of Total Net Assets |
Information Technology | 20.9% |
Health Care | 15.6% |
Consumer Discretionary | 12.4% |
Industrials | 10.4% |
Energy | 8.5% |
Consumer Staples | 7.8% |
Financials | 7.3% |
Materials | 6.1% |
Communication Services | 3.8% |
Utilities | 1.6% |
Real Estate | 1.3% |
Securities Lending Collateral2 | 1.1% |
Cash Equivalents3 | 4.1% |
Other Assets and Liabilities—Net4 | (0.9)% |
TOTAL | 100% |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—94.7% | |||
Argentina—1.3% | |||
29,442 | 1 | Globant S.A. | $5,579,553 |
5,154 | 1 | MercadoLibre, Inc. | 4,050,425 |
TOTAL | 9,629,978 | ||
Australia—1.1% | |||
279,725 | Wisetech Global Ltd. | 8,392,560 | |
Austria—0.8% | |||
60,218 | Verbund AG | 5,990,086 | |
Belgium—1.0% | |||
24,904 | 1 | Argenx SE, ADR | 7,702,807 |
Brazil—3.1% | |||
1,331,411 | 1 | 3R Petroleum Oleo e Gas S.A. | 13,657,150 |
1,403,245 | Petroleo Brasileiro S.A. | 9,820,397 | |
TOTAL | 23,477,547 | ||
Canada—2.9% | |||
249,763 | 1 | Aritzia, Inc. | 7,290,390 |
208,321 | Boralex, Inc., Class A | 6,359,073 | |
28,385 | 1 | Lululemon Athletica, Inc. | 8,308,006 |
TOTAL | 21,957,469 | ||
Chile—0.9% | |||
64,696 | 1 | Sociedad Quimica Y Minera de Chile, ADR | 6,868,774 |
China—6.7% | |||
667,281 | 1 | Alibaba Group Holding Ltd. | 8,043,407 |
561,000 | Ganfeng Lithium Co. Ltd. | 7,134,508 | |
916,862 | GoerTek, Inc. | 5,600,921 | |
15,278 | 1 | JD.com, Inc. | 431,852 |
4,720,000 | 1,2 | KWG Group Holdings Ltd. | 1,457,311 |
360,744 | Tencent Holdings Ltd. | 16,626,271 | |
737,957 | 1 | Wuxi Biologics (Cayman) Inc. | 5,376,140 |
3,880,000 | Zijin Mining Group Co. Ltd. | 5,225,364 | |
TOTAL | 49,895,774 | ||
Denmark—1.4% | |||
267,960 | 1 | Alk-Abello A/S | 5,343,899 |
121,559 | GN Store Nord A/S | 4,788,807 | |
TOTAL | 10,132,706 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—continued | |||
Finland—0.9% | |||
138,744 | Neste Oyj | $6,376,837 | |
France—5.1% | |||
195,140 | Dassault Systemes S.A. | 8,220,408 | |
15,511 | LVMH Moet Hennessy Louis Vuitton S.A. | 9,975,044 | |
114,021 | Sanofi, ADR | 6,071,618 | |
15,488 | Sartorius Stedim Biotech | 5,350,667 | |
25,655 | Teleperformance | 8,515,923 | |
TOTAL | 38,133,660 | ||
Germany—1.8% | |||
139,488 | 1 | Friedrich Vorwerk Group SE | 4,466,301 |
7,348 | Rational AG | 4,773,101 | |
41,817 | SAP SE, ADR | 4,175,009 | |
TOTAL | 13,414,411 | ||
Hong Kong—1.7% | |||
774,237 | AIA Group Ltd. | 7,919,412 | |
352,000 | Techtronic Industries Co. | 4,565,725 | |
TOTAL | 12,485,137 | ||
India—2.5% | |||
82,070 | HDFC Bank Ltd., ADR | 4,724,770 | |
409,942 | Reliance Industries Ltd. | 13,905,440 | |
TOTAL | 18,630,210 | ||
Ireland—2.2% | |||
39,637 | 1 | ICON PLC | 8,870,364 |
96,251 | Kingspan Group PLC | 7,924,685 | |
TOTAL | 16,795,049 | ||
Israel—2.2% | |||
45,321 | 1 | CyberArk Software Ltd. | 6,295,087 |
37,131 | 1 | Solaredge Technologies, Inc. | 10,128,965 |
TOTAL | 16,424,052 | ||
Italy—2.8% | |||
891,773 | Davide Campari-Milano NV | 9,527,086 | |
494,223 | 1 | Infrastrutture Wireless Italiane SPA | 5,502,239 |
173,975 | Tenaris S.A., ADR | 5,800,327 | |
TOTAL | 20,829,652 | ||
Japan—11.6% | |||
126,500 | Denso Corp. | 7,702,210 | |
78,341 | Hoya Corp. | 8,362,453 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—continued | |||
Japan—continued | |||
28,217 | Keyence Corp. | $11,253,756 | |
44,812 | Lasertec Corp. | 6,534,307 | |
171,350 | Murata Manufacturing Co. Ltd. | 11,040,557 | |
116,112 | Nidec Corp. | 7,791,228 | |
589,708 | Olympus Corp. | 12,288,578 | |
992,500 | 1 | Renesas Electronics Corp. | 11,651,636 |
19,672 | SMC Corp. | 10,125,320 | |
TOTAL | 86,750,045 | ||
Kenya—0.0% | |||
1,465,200 | Safaricom Ltd. | 326,474 | |
Netherlands—4.2% | |||
99,378 | 1 | Alfen Beheer B.V. | 10,730,194 |
24,327 | ASML Holding N.V., ADR | 14,019,407 | |
67,958 | Heineken NV | 6,851,735 | |
TOTAL | 31,601,336 | ||
Nigeria—0.8% | |||
3,152,328 | Airtel Africa PLC | 6,149,259 | |
Norway—2.1% | |||
227,467 | 3 | Aker BP ASA | 9,752,041 |
287,060 | Tomra Systems ASA | 5,849,311 | |
TOTAL | 15,601,352 | ||
Peru—1.2% | |||
139,886 | Southern Copper Corp. | 8,642,157 | |
Poland—1.1% | |||
119,488 | 1 | Dino Polska S.A. | 8,376,543 |
Saudi Arabia—0.8% | |||
302,026 | Saudi National Bank | 5,828,245 | |
Singapore—2.5% | |||
842,188 | DBS Group Holdings Ltd. | 18,975,886 | |
South Africa—1.0% | |||
775,026 | Gold Fields Ltd. | 7,292,142 | |
South Korea—3.1% | |||
246,969 | KakaoBank Corp. | 8,083,787 | |
32,304 | Samsung SDI Co. Ltd. | 14,927,551 | |
TOTAL | 23,011,338 | ||
Sweden—3.5% | |||
115,768 | 2 | MIPS AB | 7,739,872 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—continued | |||
Sweden—continued | |||
817,315 | Swedish Match AB | $8,453,173 | |
205,415 | Vitrolife AB | 6,086,840 | |
169,134 | 1 | Xvivo Perfusion AB | 4,252,402 |
TOTAL | 26,532,287 | ||
Switzerland—6.6% | |||
181,789 | Alcon, Inc. | 13,585,092 | |
4,507 | Barry Callebaut AG | 9,903,093 | |
126,110 | Nestle S.A. | 15,431,253 | |
37,911 | Sika AG | 10,501,071 | |
TOTAL | 49,420,509 | ||
Taiwan—3.7% | |||
173,000 | MediaTek, Inc. | 5,359,702 | |
234,191 | Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 22,318,402 | |
TOTAL | 27,678,104 | ||
Thailand—1.2% | |||
4,336,800 | 1 | Airports of Thailand Public Co. Ltd. | 8,852,712 |
United Kingdom—11.8% | |||
172,217 | Ashtead Group PLC | 9,024,612 | |
423,197 | AstraZeneca PLC, ADR | 28,134,136 | |
1,037,879 | Burford Capital Ltd. | 9,164,472 | |
549,209 | Compass Group PLC | 12,318,327 | |
1,145,948 | 1 | Darktrace PLC | 5,301,589 |
56,720 | 1 | Endava PLC, ADR | 5,722,481 |
501,421 | 1 | Entain PLC | 9,251,229 |
155,733 | 1 | InterContinental Hotels Group PLC | 9,704,127 |
TOTAL | 88,620,973 | ||
Vietnam—1.1% | |||
2,826,133 | Vinhomes Joint Stock Company | 8,476,830 | |
TOTAL COMMON STOCKS (IDENTIFIED COST $563,076,797) | 709,272,901 | ||
PREFERRED STOCK—1.0% | |||
Germany—1.0% | |||
95,329 | Porsche Automobil Holding SE, Pfd. (IDENTIFIED COST $10,892,573) | 7,796,191 | |
INVESTMENT COMPANIES—5.2% | |||
7,886,930 | Federated Hermes Government Obligations Fund, Premier Shares, 0.70%4 | 7,886,930 |
Shares | Value in U.S. Dollars | ||
INVESTMENT COMPANIES—continued | |||
30,913,668 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.83%4 | $30,904,393 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $38,789,097) | 38,791,323 | ||
TOTAL INVESTMENT IN SECURITIES—100.9% (IDENTIFIED COST $612,758,467)5 | 755,860,415 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.9)%6 | (6,461,860) | ||
TOTAL NET ASSETS—100% | $749,398,555 |
Federated Hermes Government Obligations Fund, Premier Shares* | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | Total of Affiliated Transactions | |
Value as of 5/31/2021 | $15,738,628 | $3,549,269 | $19,287,897 |
Purchases at Cost | $50,948,599 | $334,589,851 | $385,538,450 |
Proceeds from Sales | $(58,800,297) | $(307,217,470) | $(366,017,767) |
Change in Unrealized Appreciation/Depreciation | N/A | $2,219 | $2,219 |
Net Realized Gain/(Loss) | N/A | (19,476) | (19,476) |
Value as of 5/31/2022 | $7,886,930 | $30,904,393 | $38,791,323 |
Shares Held as of 5/31/2022 | $7,886,930 | 30,913,668 | 38,800,598 |
Dividend Income | $2,807 | $38,732 | $41,539 |
Gain Distributions Received | $— | $471 | $471 |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Equity Securities: | ||||
Common Stocks | ||||
International | $217,288,862 | $491,984,039 | $— | $709,272,901 |
Preferred Stock | ||||
International | — | 7,796,191 | — | 7,796,191 |
Investment Companies | 38,791,323 | — | — | 38,791,323 |
TOTAL SECURITIES | $256,080,185 | $499,780,230 | $— | $755,860,415 |
ADR | —American Depositary Receipt |
Year Ended May 31, | |||||
2022 | 2021 | 20202 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $18.70 | $13.02 | $11.87 | $14.79 | $12.59 |
Income From Investment Operations: | |||||
Net investment income3 | 0.08 | 0.09 | 0.03 | 0.08 | 0.06 |
Net realized and unrealized gain (loss) | (3.80) | 6.39 | 1.73 | (1.28) | 2.32 |
TOTAL FROM INVESTMENT OPERATIONS | (3.72) | 6.48 | 1.76 | (1.20) | 2.38 |
Less Distributions: | |||||
Distributions from net investment income | (0.05) | (0.01) | (0.08) | (0.06) | (0.07) |
Distributions from net realized gains | (0.67) | (0.79) | (0.53) | (1.67) | (0.11) |
TOTAL DISTRIBUTIONS | (0.72) | (0.80) | (0.61) | (1.73) | (0.18) |
Payment by Affiliate4 | — | — | — | 0.01 | — |
Net Asset Value, End of Period | $14.26 | $18.70 | $13.02 | $11.87 | $14.79 |
Total Return5 | (20.70)% | 50.28% | 14.78% | (6.61)%4 | 18.97% |
Ratios to Average Net Assets: | |||||
Net expenses6 | 0.84% | 0.84% | 0.85% | 0.85% | 0.85% |
Net investment income | 0.47% | 0.51% | 0.21% | 0.58% | 0.44% |
Expense waiver/reimbursement7 | 0.09% | 0.36% | 5.10% | 2.54% | 1.73% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $749,120 | $835,694 | $5,094 | $5,412 | $6,199 |
Portfolio turnover8 | 47% | 89% | 70% | 54% | 64% |
Period Ended 5/31/20221 | |
Net Asset Value, Beginning of Period | $20.05 |
Income From Investment Operations: | |
Net investment income2 | 0.12 |
Net realized and unrealized gain (loss) | (5.19) |
TOTAL FROM INVESTMENT OPERATIONS | (5.07) |
Less Distributions: | |
Distributions from net investment income | (0.05) |
Distributions from net realized gains | (0.67) |
TOTAL DISTRIBUTIONS | (0.72) |
Net Asset Value, End of Period | $14.26 |
Total Return3 | (26.04)% |
Ratios to Average Net Assets: | |
Net expenses4 | 0.83%5 |
Net investment income | 0.92%5 |
Expense waiver/reimbursement6 | 0.12%5 |
Supplemental Data: | |
Net assets, end of period (000 omitted) | $279 |
Portfolio turnover7 | 47%8 |
May 31, 2022
Assets: | ||
Investment in securities, at value including $7,641,393 of securities loaned and $38,791,323 of investment in affiliated holdings* (identified cost $612,758,467) | $755,860,415 | |
Cash denominated in foreign currencies (identified cost $541,199) | 541,674 | |
Cash | 91,050 | |
Receivable for investments sold | 9,336,812 | |
Income receivable | 3,435,159 | |
Receivable for shares sold | 69,783 | |
TOTAL ASSETS | 769,334,893 | |
Liabilities: | ||
Payable for investments purchased | $11,364,981 | |
Payable for collateral due to broker for securities lending | 7,886,930 | |
Payable for capital gains taxes withheld | 217,509 | |
Payable for shares redeemed | 3,042 | |
Payable for investment adviser fee (Note 5) | 12,794 | |
Payable for administrative fee (Note 5) | 1,842 | |
Accrued expenses (Note 5) | 449,240 | |
TOTAL LIABILITIES | 19,936,338 | |
Net assets for 52,566,013 shares outstanding | $749,398,555 | |
Net Assets Consists of: | ||
Paid-in capital | $597,231,538 | |
Total distributable earnings (loss) | 152,167,017 | |
TOTAL NET ASSETS | $749,398,555 | |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | ||
Institutional Shares: | ||
Net asset value per share ($749,119,868 ÷ 52,546,472 shares outstanding) no par value, unlimited shares authorized | $14.26 | |
Class R6 Shares: | ||
Net asset value per share ($278,687 ÷ 19,541 shares outstanding) no par value, unlimited shares authorized | $14.26 |
Year Ended May 31, 2022
Investment Income: | |||
Dividends (including $38,732 received from an affiliated holding* and net of foreign taxes withheld of $763,663) | $10,879,613 | ||
Net income on securities loaned (includes $2,807 earned from an affiliated holding* related to cash collateral balances) (Note 2) | 31,160 | ||
TOTAL INCOME | 10,910,773 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $6,257,876 | ||
Administrative fee (Note 5) | 653,592 | ||
Custodian fees | 475,819 | ||
Transfer agent fees (Note 2) | 60,606 | ||
Directors’/Trustees’ fees (Note 5) | 4,174 | ||
Auditing fees | 32,999 | ||
Legal fees | 9,516 | ||
Portfolio accounting fees | 158,850 | ||
Share registration costs | 45,677 | ||
Printing and postage | 21,628 | ||
Miscellaneous (Note 5) | 47,280 | ||
TOTAL EXPENSES | 7,768,017 | ||
Waiver/reimbursement of investment adviser fee (Note 5) | (775,704) | ||
Net expenses | 6,992,313 | ||
Net investment income | 3,918,460 | ||
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: | |||
Net realized gain on investments (including net realized loss of $(19,476) on sales of investments in an affiliated holding*) and foreign currency transactions | 33,513,810 | ||
Realized gain distribution from affiliated investment company shares* | 471 | ||
Net change in unrealized appreciation of investments, certain receivables and translation of assets and liabilities in foreign currency (including net change in unrealized appreciation of $2,219 of investments in an affiliated holding*) | (208,845,586) | ||
Net realized and unrealized gain (loss) on investments and foreign currency transactions | (175,331,305) | ||
Change in net assets resulting from operations | $(171,412,845) |
Year Ended May 31 | 2022 | 2021 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $3,918,460 | $462,773 |
Net realized gain | 33,514,281 | 4,782,273 |
Net change in unrealized appreciation/depreciation | (208,845,586) | 350,056,166 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | (171,412,845) | 355,301,212 |
Distributions to Shareholders: | ||
Institutional Shares | (31,306,879) | (344,222) |
Class R6 Shares | (9,902) | — |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (31,316,781) | (344,222) |
Share Transactions: | ||
Proceeds from sale of shares | 170,794,304 | 533,259,568 |
Net asset value of shares issued to shareholders in payment of distributions declared | 31,309,146 | 344,222 |
Cost of shares redeemed | (85,669,402) | (57,960,288) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 116,434,048 | 475,643,502 |
Change in net assets | (86,295,578) | 830,600,492 |
Net Assets: | ||
Beginning of period | 835,694,133 | 5,093,641 |
End of period | $749,398,555 | $835,694,133 |
Security | Acquisition Date | Acquisition Cost | Value |
KWG Group Holdings Ltd. | 2/16/2022 | $2,139,751 | $1,457,311 |
MIPS AB | 10/2/2019 | $2,047,532 | $7,739,872 |
Transfer Agent Fees Incurred | |
Institutional Shares | $60,595 |
Class R6 Shares | 11 |
TOTAL | $60,606 |
Market Value of Securities Loaned | Collateral Received |
$7,641,393 | $7,886,930 |
Year Ended May 31 | 2022 | 2021 | ||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 10,647,072 | $170,441,751 | 47,422,997 | $533,259,568 |
Shares issued to shareholders in payment of distributions declared | 1,722,697 | 31,301,413 | 19,909 | 344,222 |
Shares redeemed | (4,513,741) | (85,669,402) | (3,143,660) | (57,960,288) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 7,856,028 | $116,073,762 | 44,299,246 | $475,643,502 |
Period Ended May 31 | 20221 | 2021 | ||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 19,116 | $352,553 | — | $— |
Shares issued to shareholders in payment of distributions declared | 425 | 7,733 | — | — |
Shares redeemed | — | — | — | — |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | 19,541 | $360,286 | — | — |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 7,875,569 | $116,434,048 | 44,299,246 | $475,643,502 |
2022 | 2021 | |
Ordinary income | $3,150,889 | $3,136 |
Long-term capital gain | $28,165,892 | $341,086 |
Undistributed ordinary income | $6,260,349 |
Undistributed long-term capital gains | $5,668,336 |
Net unrealized appreciation | $140,238,332 |
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 | $439,725,378 |
Sales | $378,167,040 |
July 25, 2022
Beginning Account Value 12/1/2021 | Ending Account Value 5/31/2022 | Expenses Paid During Period1 | |
Actual: | |||
Institutional Shares | $1,000.00 | $787.10 | $3.74 |
Class R6 Shares | $1,000.00 | $786.70 | $3.74 |
Hypothetical (assuming a 5% return before expenses): | |||
Institutional Shares | $1,000.00 | $1,020.74 | $4.23 |
Class R6 Shares | $1,000.00 | $1,020.74 | $4.23 |
Institutional Shares | 0.84% |
Class R6 Shares | 0.84% |
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: May 2017 | 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. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2017 | 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; 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; President of some of the Funds in the Federated Hermes Fund Family and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; President and CEO of Passport Research, Ltd.; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Hermes, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. 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 |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Director, KLX Energy Services Holdings, Inc. (oilfield services); former Director of KLX Corp. (aerospace). Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm) and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
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: May 2017 | Principal Occupations: Director or Trustee, Chair of the Audit Committee 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, 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. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor Emerita of Law, 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 (formerly known as CONSOL Energy Inc.). 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 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 to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. 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 (formerly known as CONSOL Energy Inc.). 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, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director, Saint Francis University. |
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 |
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee 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, The Golisano Children’s Museum of Naples, Florida; and Director, Midway Pacific (lumber). |
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, Executive Vice President for Legal Affairs, General Counsel and Secretary to the 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 to the Board of Directors and Assistant General Counsel and Director of Risk Management, 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. |
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 |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: May 2017 | Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant; 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: May 2017 | 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 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: May 2017 | 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: November 2017 | 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: May 2017 | 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. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: May 2017 | 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.
CUSIP 31423A630
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: G. Thomas Hough and Thomas M. O'Neill.
Item 4. | Principal Accountant Fees and Services |
(a) Audit Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2022 – $375,600
Fiscal year ended 2021 - $274,090
(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2022 - $21,070
Fiscal year ended 2021 - $5,000
Fiscal year ended 2022- Audit consents for N-1A filings.
Fiscal year ended 2021- Audit consent for N-1A financial highlights.
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 2022 - $11,438
Fiscal year ended 2021 - $0
Fiscal year ended 2022- International tax advice with respect to exchange of American Depositary Receipt.
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 2022 - $0
Fiscal year ended 2021 - $0
Amount requiring approval of the registrant’s Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $73,423 and $52,391 respectively. Fiscal year ended 2022- Service fees for analysis of potential Passive Foreign Investment Company holdings. Fiscal year ended 2021- 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 2022 – 0%
Fiscal year ended 2021 - 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 2022 – 0%
Fiscal year ended 2021 – 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 2022 – 0%
Fiscal year ended 2021 – 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 2021 - $206,558
Fiscal year ended 2020 - $93,155
(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 Adviser Series
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date July 25, 2022
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 July 25, 2022
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date July 25, 2022