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, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
Peter J. Germain, Esquire
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 11/30/23
Date of Reporting Period: Six months ended 05/31/23
Item 1. | Reports to Stockholders |
Share Class | Ticker | Institutional | FHGIX | R6 | FGERX |
Federated Hermes Global Equity Fund
A Portfolio of Federated Hermes Adviser Series
Country | Percentage of Total Net Assets |
United States | 62.5% |
Japan | 5.1% |
Switzerland | 3.6% |
United Kingdom | 3.4% |
Netherlands | 2.9% |
China | 2.7% |
Denmark | 2.6% |
South Korea | 2.4% |
Italy | 2.0% |
Taiwan | 1.9% |
Norway | 1.8% |
Hong Kong | 1.5% |
Sweden | 1.5% |
Canada | 1.1% |
Indonesia | 0.8% |
Australia | 0.7% |
Finland | 0.7% |
Spain | 0.6% |
France | 0.5% |
India | 0.4% |
Brazil | 0.3% |
Other Assets and Liabilities—Net2 | 1.0% |
TOTAL | 100% |
Sector Classification | Percentage of Total Net Assets |
Information Technology | 24.0% |
Financials | 14.6% |
Health Care | 13.9% |
Consumer Discretionary | 10.3% |
Industrials | 9.8% |
Consumer Staples | 8.6% |
Communication Services | 7.1% |
Materials | 3.8% |
Real Estate | 2.8% |
Energy | 2.6% |
Utilities | 1.5% |
Other Assets and Liabilities—Net2 | 1.0% |
TOTAL | 100% |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—99.0% | |||
Australia—0.7% | |||
10,112 | Goodman Group | $129,233 | |
Brazil—0.3% | |||
80,300 | 1 | Magazine Luiza SA | 60,146 |
Canada—1.1% | |||
4,568 | Rogers Communications, Inc., Class B | 201,396 | |
China—2.7% | |||
15,933 | 1 | Alibaba Group Holding Ltd. | 158,493 |
25,400 | China Mengniu Dairy Co., Ltd. | 98,403 | |
46,000 | PICC Property and Casualty Co., Ltd., Class H | 54,830 | |
18,500 | Ping An Insurance (Group) Co. of China Ltd. | 117,564 | |
87,881 | Shenzhen International Holdings Ltd. | 69,606 | |
TOTAL | 498,896 | ||
Denmark—2.6% | |||
2,985 | Novo Nordisk A/S | 479,646 | |
Finland—0.7% | |||
9,894 | Stora Enso Oyj, Class R | 125,527 | |
France—0.5% | |||
860 | Vinci SA | 98,068 | |
Hong Kong—1.5% | |||
22,957 | AIA Group Ltd. | 222,598 | |
1,400 | Hong Kong Exchanges & Clearing Ltd. | 51,427 | |
TOTAL | 274,025 | ||
India—0.4% | |||
1,450 | Dr. Reddy’s Laboratories Ltd. | 79,128 | |
Indonesia—0.8% | |||
569,500 | PT Telekomunikasi Indonesia Tbk | 153,722 | |
Italy—2.0% | |||
4,101 | Prysmian SpA | 152,627 | |
11,429 | UniCredit SpA | 219,946 | |
TOTAL | 372,573 | ||
Japan—5.1% | |||
1,300 | FUJIFILM Holdings Corp. | 79,353 | |
3,000 | Kurita Water Industries Ltd. | 121,766 | |
2,611 | Nippon Telegraph & Telephone Corp. | 74,026 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—continued | |||
Japan—continued | |||
1,900 | Nitto Denko Corp. | $135,065 | |
1,500 | Omron Corp. | 90,410 | |
23,800 | Panasonic Holdings Corp. | 246,986 | |
2,000 | Sony Group Corp. | 187,006 | |
TOTAL | 934,612 | ||
Netherlands—2.9% | |||
646 | ASML Holding N.V. | 462,992 | |
2,597 | Signify N.V. | 66,365 | |
TOTAL | 529,357 | ||
Norway—1.8% | |||
8,241 | Aker BP ASA | 178,782 | |
25,054 | Norsk Hydro ASA | 151,540 | |
TOTAL | 330,322 | ||
South Korea—2.4% | |||
72 | LG Household & Health Care Ltd. | 28,569 | |
5,491 | Samsung Electronics Co., Ltd. | 294,197 | |
629 | Samsung Fire & Marine Insurance | 106,821 | |
TOTAL | 429,587 | ||
Spain—0.6% | |||
9,374 | Iberdrola SA | 114,317 | |
Sweden—1.5% | |||
7,258 | Husqvarna AB, Class B | 53,712 | |
15,805 | Svenska Cellulosa AB SCA, Class B | 210,958 | |
TOTAL | 264,670 | ||
Switzerland—3.6% | |||
306 | Lonza Group AG | 191,915 | |
2,124 | Nestle S.A. | 252,068 | |
679 | Roche Holding AG | 215,150 | |
TOTAL | 659,133 | ||
Taiwan—1.9% | |||
17,616 | Giant Manufacturing Co. Ltd. | 118,036 | |
2,280 | Taiwan Semiconductor Manufacturing Co. Ltd, ADR | 224,785 | |
TOTAL | 342,821 | ||
United Kingdom—3.4% | |||
1,610 | AstraZeneca PLC | 233,865 | |
17,847 | M&G PLC | 44,209 | |
10,214 | Prudential PLC | 134,795 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—continued | |||
United Kingdom—continued | |||
21,000 | Tate & Lyle PLC | $205,786 | |
TOTAL | 618,655 | ||
United States—62.5% | |||
2,790 | Abbott Laboratories | 284,580 | |
1,011 | Accenture PLC | 309,285 | |
1,987 | 1 | Advanced Micro Devices, Inc. | 234,883 |
2,748 | 1 | Alphabet, Inc., Class A | 337,647 |
3,382 | 1 | Amazon.com, Inc. | 407,802 |
1,078 | American Tower Corp. | 198,826 | |
508 | American Water Works Co., Inc. | 73,381 | |
423 | Amgen, Inc. | 93,335 | |
563 | Analog Devices, Inc. | 100,039 | |
5,983 | Apple, Inc. | 1,060,487 | |
1,053 | Automatic Data Processing, Inc. | 220,066 | |
8,372 | Bank of America Corp. | 232,658 | |
1,143 | Best Buy Co., Inc. | 83,062 | |
3,311 | Bristol-Myers Squibb Co. | 213,361 | |
2,363 | Capital One Financial Corp. | 246,248 | |
780 | Chubb Ltd. | 144,924 | |
3,434 | Citigroup, Inc. | 152,195 | |
1,067 | 1 | Copart, Inc. | 93,459 |
670 | Costco Wholesale Corp. | 342,745 | |
951 | 1 | Crowdstrike Holdings, Inc. | 152,284 |
1,698 | CVS Health Corp. | 115,515 | |
3,192 | 1 | Delta Air Lines, Inc. | 115,965 |
1,269 | 1 | Dollar Tree, Inc. | 171,163 |
792 | FedEx Corp. | 172,640 | |
2,969 | Fortune Brands Innovations, Inc. | 179,476 | |
2,097 | General Mills, Inc. | 176,484 | |
2,339 | Hess Corp. | 296,281 | |
1,481 | IBM Corp. | 190,442 | |
1,517 | Ingersoll-Rand, Inc. | 85,953 | |
578 | Kimberly-Clark Corp. | 77,614 | |
337 | Lam Research Corp. | 207,828 | |
898 | M&T Bank Corp. | 107,006 | |
1,877 | 1 | Masterbrand, Inc. | 19,483 |
2,641 | Microsoft Corp. | 867,278 | |
2,379 | Mosaic Co./The | 76,033 |
Shares | Value in U.S. Dollars | ||
COMMON STOCKS—continued | |||
United States—continued | |||
190 | MSCI, Inc., Class A | $89,401 | |
222 | 1 | O’Reilly Automotive, Inc. | 200,535 |
6,053 | Pfizer, Inc. | 230,135 | |
1,517 | Procter & Gamble Co. | 216,172 | |
2,610 | Prudential Financial, Inc. | 205,381 | |
913 | Robert Half International, Inc. | 59,363 | |
1,425 | 1 | Royal Caribbean Cruises, Ltd. | 115,382 |
483 | 1 | Solaredge Technologies, Inc. | 137,573 |
1,827 | The Travelers Cos., Inc. | 309,201 | |
316 | Thermo Fisher Scientific, Inc. | 160,673 | |
4,051 | TJX Cos., Inc. | 311,076 | |
1,740 | Trane Technologies PLC | 284,020 | |
3,065 | UGI Corp. | 85,728 | |
6,631 | Verizon Communications, Inc. | 236,263 | |
1,039 | Visa, Inc., Class A | 229,650 | |
3,492 | 1 | Walt Disney Co. | 307,156 |
6,660 | Weyerhaeuser Co. | 190,876 | |
1,608 | Zoetis, Inc. | 262,120 | |
TOTAL | 11,471,133 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $17,515,426) | 18,166,967 | ||
TOTAL INVESTMENT IN SECURITIES—99.0% (IDENTIFIED COST $17,515,426)2 | 18,166,967 | ||
OTHER ASSETS AND LIABILITIES - NET—1.0%3 | 181,517 | ||
TOTAL NET ASSETS—100% | $18,348,484 |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | $11,471,133 | $— | $— | $11,471,133 |
International | 486,327 | 6,209,507 | — | 6,695,834 |
TOTAL SECURITIES | $11,957,460 | $6,209,507 | $— | $18,166,967 |
ADR | —American Depositary Receipt |
Six Months Ended (unaudited) 5/31/2023 | Year Ended November 30, | Period Ended 11/30/20191 | |||
2022 | 2021 | 2020 | |||
Net Asset Value, Beginning of Period | $12.25 | $14.62 | $12.34 | $10.46 | $10.00 |
Income from Investment Operations | |||||
Net investment income | 0.08 | 0.152 | 0.082 | 0.08 | 0.04 |
Net realized and unrealized gain (loss) | 0.04 | (2.42) | 2.29 | 1.86 | 0.42 |
TOTAL FROM INVESTMENT OPERATIONS | 0.12 | (2.27) | 2.37 | 1.94 | 0.46 |
Less Distributions: | |||||
Distributions from net investment income | (0.14) | (0.06) | (0.09) | (0.06) | — |
Distributions from net realized gain | — | (0.04) | — | — | — |
TOTAL DISTRIBUTIONS | (0.14) | (0.10) | (0.09) | (0.06) | — |
Net Asset Value, End of Period | $12.23 | $12.25 | $14.62 | $12.34 | $10.46 |
Total Return3 | 1.06% | (15.63)% | 19.27% | 18.60% | 4.60% |
Ratios to Average Net Assets: | |||||
Net expenses4 | 0.72%5,6 | 0.73% | 0.74%6 | 0.74%6 | 0.74%5 |
Net investment income | 1.34%5 | 1.17% | 0.59% | 0.86% | 0.86%5 |
Expense waiver/reimbursement7 | 1.58%5 | 1.62% | 2.64% | 5.03% | 5.96%5 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $18,319 | $18,474 | $20,453 | $8,368 | $5,167 |
Portfolio turnover8 | 5% | 20% | 16% | 17% | 15% |
Six Months Ended (unaudited) 5/31/2023 | Year Ended 11/30/2022 | Period Ended 11/30/20211 | |
Net Asset Value, Beginning of Period | $12.25 | $14.63 | $14.31 |
Income From Investment Operations: | |||
Net investment income | 0.08 | 0.152 | 0.022 |
Net realized and unrealized gain (loss) | 0.05 | (2.43) | 0.30 |
TOTAL FROM INVESTMENT OPERATIONS | 0.13 | (2.28) | 0.32 |
Less Distributions: | |||
Distributions from net investment income | (0.14) | (0.06) | — |
Distributions from net realized gain | — | (0.04) | — |
TOTAL DISTRIBUTIONS | (0.14) | (0.10) | — |
Net Asset Value, End of Period | $12.24 | $12.25 | $14.63 |
Total Return3 | 1.18% | (15.68)% | 2.24% |
Ratios to Average Net Assets: | |||
Net expenses4 | 0.68%5,6 | 0.69% | 0.68%5,6 |
Net investment income | 1.39%5 | 1.21% | 0.12%5 |
Expense waiver/reimbursement7 | 1.56%5 | 1.62% | 1.80%5 |
Supplemental Data: | |||
Net assets, end of period (000 omitted) | $30 | $30 | $35 |
Portfolio turnover8 | 5% | 20% | 16%9 |
May 31, 2023 (unaudited)
Assets: | ||
Investment in securities, at value (identified cost $17,515,426) | $18,166,967 | |
Cash | 222,851 | |
Income receivable | 45,568 | |
Prepaid expenses | 12,516 | |
TOTAL ASSETS | 18,447,902 | |
Liabilities: | ||
Payable for capital gains taxes withheld | $164 | |
Payable for portfolio accounting fees | 67,613 | |
Payable for auditing fees | 18,225 | |
Payable for custodian fees | 11,452 | |
Payable to adviser (Note 5) | 1,964 | |
TOTAL LIABILITIES | 99,418 | |
Net assets for 1,499,819 shares outstanding | $18,348,484 | |
Net Assets Consists of: | ||
Paid-in capital | $18,622,200 | |
Total distributable earnings (loss) | (273,716) | |
TOTAL NET ASSETS | $18,348,484 | |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | ||
Institutional Shares: | ||
Net asset value per share ($18,318,916 ÷ 1,497,403 shares outstanding) no par value, unlimited shares authorized | $12.23 | |
Class R6 Shares: | ||
Net asset value per share ($29,568 ÷ 2,416 shares outstanding) no par value, unlimited shares authorized | $12.24 |
Six Months Ended May 31, 2023 (unaudited)
Investment Income: | |||
Dividends (net of foreign tax withheld of $16,138) | $187,933 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $58,902 | ||
Administrative fee (Note 5) | 7,612 | ||
Custodian fees | 8,418 | ||
Transfer agent fees (Note 2) | 6,174 | ||
Directors’/Trustees’ fees (Note 5) | 338 | ||
Auditing fees | 18,225 | ||
Legal fees | 4,503 | ||
Portfolio accounting fees | 67,938 | ||
Share registration costs | 18,610 | ||
Printing and postage | 9,575 | ||
Miscellaneous (Note 5) | 9,080 | ||
TOTAL EXPENSES | 209,375 | ||
Waiver, Reimbursement and Reduction: | |||
Waiver of investment adviser fee (Note 5) | $(58,902) | ||
Reimbursement of other operating expenses (Note 5) | (84,185) | ||
Reduction of custodian fees (Note 6) | (916) | ||
TOTAL WAIVER, REIMBURSEMENT AND REDUCTION | (144,003) | ||
Net expenses | 65,372 | ||
Net investment income | �� | 122,561 | |
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: | |||
Net realized loss on investments and foreign currency transactions | (179,894) | ||
Net change in unrealized depreciation of investments and translation of assets and liabilities in foreign currency (including increase in payable for capital gains taxes withheld of $75) | 262,874 | ||
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 82,980 | ||
Change in net assets resulting from operations | $205,541 |
Six Months Ended (unaudited) 5/31/2023 | Year Ended 11/30/2022 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $122,561 | $217,606 |
Net realized loss | (179,894) | (810,203) |
Net change in unrealized appreciation/depreciation | 262,874 | (2,641,988) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 205,541 | (3,234,585) |
Distributions to Shareholders: | ||
Institutional Shares | (209,818) | (147,679) |
Class R6 Shares | (350) | (256) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (210,168) | (147,935) |
Share Transactions: | ||
Proceeds from sale of shares | 370,497 | 3,042,632 |
Net asset value of shares issued to shareholders in payment of distributions declared | 172,370 | 130,326 |
Cost of shares redeemed | (693,144) | (1,775,566) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (150,277) | 1,397,392 |
Change in net assets | (154,904) | (1,985,128) |
Net Assets: | ||
Beginning of period | 18,503,388 | 20,488,516 |
End of period | $18,348,484 | $18,503,388 |
Transfer Agent Fees Incurred | |
Institutional Shares | $6,169 |
Class R6 Shares | 5 |
TOTAL | $6,174 |
Six Months Ended 5/31/2023 | Year Ended 11/30/2022 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 31,269 | $370,497 | 240,386 | $3,042,632 |
Shares issued to shareholders in payment of distributions declared | 15,054 | 172,370 | 8,602 | 130,326 |
Shares redeemed | (57,274) | (693,144) | (139,230) | (1,775,566) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (10,951) | $(150,277) | 109,758 | $1,397,392 |
Six Months Ended 5/31/2023 | Year Ended 11/30/2022 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | — | $— | — | $— |
Shares issued to shareholders in payment of distributions declared | — | — | — | — |
Shares redeemed | — | — | — | — |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | — | $— | — | $— |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (10,951) | $(150,277) | 109,758 | $1,397,392 |
Short-Term | Long-Term | Total |
$773,334 | $37,950 | $811,824 |
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 | $863,701 |
Sales | $923,663 |
Beginning Account Value 12/1/2022 | Ending Account Value 5/31/2023 | Expenses Paid During Period1 | |
Actual: | |||
Institutional Shares | $1,000.00 | $1,010.60 | $3.66 |
Class R6 Shares | $1,000.00 | $1,011.80 | $3.46 |
Hypothetical (assuming a 5% return before expenses): | |||
Institutional Shares | $1,000.00 | $1,021.29 | $3.68 |
Class R6 Shares | $1,000.00 | $1,021.49 | $3.48 |
Institutional Shares | 0.73% |
Class R6 Shares | 0.69% |
Annual Evaluation of Adequacy and Effectiveness
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31423A804
Item 2. | Code of Ethics |
Not Applicable
Item 3. | Audit Committee Financial Expert |
Not Applicable
Item 4. | Principal Accountant Fees and Services |
Not Applicable
Item 5. | Audit Committee of Listed Registrants |
Not Applicable
Item 6. | Schedule of Investments |
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
Item 8. | Portfolio Managers of Closed-End Management Investment Companies |
Not Applicable
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
Not Applicable
Item 10. | Submission of Matters to a Vote of Security Holders |
No Changes to Report
Item 11. | Controls and Procedures |
(a) The registrant’s President and Treasurer have concluded that the
registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies |
Not Applicable
Item 13. | Exhibits |
(a)(1) Code of Ethics- Not Applicable to this Report.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Federated Hermes Adviser Series
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date July 21, 2023
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /S/ J. Christopher Donahue
J. Christopher Donahue
Principal Executive Officer
Date July 21, 2023
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date July 21, 2023