United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-4017
(Investment Company Act File Number)
Federated Hermes Equity Funds
______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
Peter J. Germain, Esquire
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 09/30/21
Date of Reporting Period: Six months ended 03/31/21
Item 1. | Reports to Stockholders |
Share Class | Ticker | A | VSFAX | C | VSFCX | R | VSFRX |
Institutional | VSFIX | R6 | VSFSX |
Federated Hermes Clover Small Value Fund
A Portfolio of Federated Hermes Equity Funds
Sector Composition | Percentage of Total Net Assets |
Financials | 26.4% |
Industrials | 17.2% |
Consumer Discretionary | 10.7% |
Information Technology | 8.7% |
Materials | 7.0% |
Real Estate | 6.5% |
Energy | 5.3% |
Utilities | 4.0% |
Consumer Staples | 3.2% |
Health Care | 2.7% |
Communication Services | 2.6% |
Exchange-Traded Fund | 1.9% |
Cash Equivalents2 | 3.7% |
Other Assets and Liabilities—Net3 | 0.1% |
TOTAL | 100% |
1 | Except for Cash Equivalents and Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
2 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. |
3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares | Value | ||
COMMON STOCKS— 94.3% | |||
Communication Services— 2.6% | |||
25,105 | Nexstar Media Group, Inc., Class A | $3,525,495 | |
180,372 | 1 | Orbcomm, Inc. | 1,376,239 |
TOTAL | 4,901,734 | ||
Consumer Discretionary— 10.7% | |||
42,187 | American Eagle Outfitters, Inc. | 1,233,548 | |
13,767 | 1 | Asbury Automotive Group, Inc. | 2,705,215 |
63,300 | 1 | Bloomin Brands, Inc. | 1,712,265 |
58,445 | 1 | Boyd Gaming Corp. | 3,445,917 |
24,141 | Kontoor Brands, Inc. | 1,171,563 | |
8,764 | 1 | LGI Homes, Inc. | 1,308,553 |
35,770 | Monro Muffler Brake, Inc. | 2,353,666 | |
44,193 | Steven Madden Ltd. | 1,646,631 | |
39,354 | Travel + Leisure Co. | 2,406,891 | |
38,856 | 1 | Urban Outfitters, Inc. | 1,445,055 |
9,115 | 1 | Visteon Corp. | 1,111,574 |
TOTAL | 20,540,878 | ||
Consumer Staples— 3.2% | |||
21,385 | 1 | Darling Ingredients, Inc. | 1,573,508 |
106,266 | 1 | Hostess Brands, Inc. | 1,523,854 |
72,252 | 1 | Mission Produce, Inc. | 1,373,511 |
97,369 | Primo Water Corp. | 1,583,220 | |
TOTAL | 6,054,093 | ||
Energy— 5.3% | |||
57,478 | 1 | Bonanza Creek Energy, Inc. | 2,053,689 |
101,430 | 1 | Championx Corp. | 2,204,074 |
71,077 | 1 | CNX Resources Corp. | 1,044,832 |
82,045 | 1 | PDC Energy, Inc. | 2,822,348 |
13,921 | 1 | Renewable Energy Group, Inc. | 919,343 |
35,235 | World Fuel Services Corp. | 1,240,272 | |
TOTAL | 10,284,558 | ||
Financials— 26.4% | |||
58,405 | American Equity Investment Life Holding Co. | 1,841,510 | |
30,643 | Ameris Bancorp | 1,609,064 | |
55,761 | Argo Group International Holdings Ltd. | 2,805,894 | |
84,855 | BancorpSouth Bank | 2,756,090 | |
78,835 | CNO Financial Group, Inc. | 1,914,902 | |
36,210 | Cowen Group, Inc. | 1,272,781 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Financials— continued | |||
101,989 | First BanCorp | $1,148,396 | |
158,820 | First Commonwealth Financial Corp. | 2,282,243 | |
53,541 | First Interstate BancSystem, Inc., Class A | 2,465,028 | |
50,060 | Flagstar Bancorp, Inc. | 2,257,706 | |
45,320 | Hancock Whitney Corp. | 1,903,893 | |
14,325 | Hanover Insurance Group, Inc. | 1,854,514 | |
26,585 | Horace Mann Educators Corp. | 1,148,738 | |
136,745 | Investors Bancorp, Inc. | 2,008,784 | |
68,295 | KKR Real Estate Finance Trust, Inc. | 1,255,945 | |
112,536 | OceanFirst Financial Corp. | 2,694,112 | |
100,680 | Old National Bancorp | 1,947,151 | |
49,390 | Pennymac Mortgage Investment Trust | 968,044 | |
11,980 | Primerica, Inc. | 1,770,884 | |
70,449 | Radian Group, Inc. | 1,637,939 | |
54,092 | Stifel Financial Corp. | 3,465,134 | |
70,165 | Synovus Financial Corp. | 3,210,049 | |
80,835 | United Community Banks, Inc. | 2,758,090 | |
163,011 | Valley National Bancorp | 2,239,771 | |
32,364 | WSFS Financial Corp. | 1,611,404 | |
TOTAL | 50,828,066 | ||
Health Care— 2.7% | |||
112,693 | 1 | Aurinia Pharmaceuticals, Inc. | 1,463,318 |
43,280 | 1 | Envista Holdings Corp. | 1,765,824 |
3,015 | 1 | Novavax, Inc. | 546,650 |
18,825 | 1 | Syneos Health, Inc. | 1,427,876 |
TOTAL | 5,203,668 | ||
Industrials— 17.2% | |||
17,908 | ABM Industries, Inc. | 913,487 | |
39,567 | Barnes Group, Inc. | 1,960,149 | |
20,417 | 1 | Casella Waste Systems, Inc. | 1,297,909 |
267,566 | Costamare, Inc. | 2,573,985 | |
45,760 | Healthcare Services Group, Inc. | 1,282,653 | |
21,254 | 1 | Herc Holdings, Inc. | 2,153,668 |
64,628 | Hillenbrand, Inc. | 3,083,402 | |
13,941 | 1 | NV5 Holdings, Inc. | 1,346,282 |
61,149 | Rexnord Corp. | 2,879,506 | |
29,480 | Ryder System, Inc. | 2,230,162 | |
41,218 | 1 | SkyWest, Inc. | 2,245,557 |
48,717 | Spirit AeroSystems Holdings, Inc., Class A | 2,370,082 | |
33,097 | 1 | SPX Corp. | 1,928,562 |
46,336 | Terex Corp. | 2,134,699 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Industrials— continued | |||
170,731 | 1 | Titan International, Inc. | $1,584,384 |
5,706 | Unifirst Corp. | 1,276,489 | |
21,303 | 1 | WESCO International, Inc. | 1,843,349 |
TOTAL | 33,104,325 | ||
Information Technology— 8.7% | |||
84,225 | Benchmark Electronics, Inc. | 2,604,237 | |
50,649 | Comtech Telecommunications Corp. | 1,258,121 | |
16,814 | 1 | ePlus, Inc. | 1,675,347 |
436,906 | 1 | Moneygram International, Inc. | 2,870,472 |
39,644 | 1 | Perficient, Inc. | 2,327,896 |
29,760 | 1 | SMART Global Holdings, Inc. | 1,369,555 |
24,035 | 1 | SunPower Corp. | 803,971 |
99,827 | 1 | TTM Technologies, Inc. | 1,447,492 |
41,423 | 1 | Ultra Clean Holdings, Inc. | 2,404,191 |
TOTAL | 16,761,282 | ||
Materials— 7.0% | |||
86,362 | 1 | Alcoa Corp. | 2,805,901 |
23,125 | Ashland Global Holdings, Inc. | 2,052,806 | |
101,823 | Cleveland-Cliffs, Inc. | 2,047,660 | |
259,575 | 1,2 | Ferroglobe Representation & Warranty Insurance Trust | 0 |
84,913 | Huntsman Corp. | 2,448,042 | |
20,373 | Louisiana-Pacific Corp. | 1,129,887 | |
95,027 | Trox Holdings PLC | 1,738,994 | |
45,958 | United States Steel Corp. | 1,202,721 | |
TOTAL | 13,426,011 | ||
Real Estate— 6.5% | |||
187,454 | Lexington Realty Trust | 2,082,614 | |
417,300 | New Senior Investment Group, Inc. | 2,599,779 | |
209,793 | 1 | Retail Opportunity Investments Corp. | 3,329,415 |
26,632 | 1 | Ryman Hospitality Properties | 2,064,246 |
193,882 | 1 | Sunstone Hotel Investors, Inc. | 2,415,770 |
TOTAL | 12,491,824 | ||
Utilities— 4.0% | |||
47,059 | Clearway Energy, Inc. | 1,324,240 | |
42,990 | Otter Tail Corp. | 1,984,848 | |
60,369 | Portland General Electric Co. | 2,865,717 | |
21,230 | Spire, Inc. | 1,568,685 | |
TOTAL | 7,743,490 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $129,598,963) | 181,339,929 |
Shares | Value | ||
EXCHANGE-TRADED FUND— 1.9% | |||
23,162 | iShares Russell 2000 Value ETF (IDENTIFIED COST $3,223,352) | $3,693,644 | |
INVESTMENT COMPANY— 3.7% | |||
7,134,800 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.05%3 (IDENTIFIED COST $7,136,376) | 7,136,227 | |
TOTAL INVESTMENT IN SECURITIES—99.9% (IDENTIFIED COST $139,958,691)4 | 192,169,800 | ||
OTHER ASSETS AND LIABILITIES - NET—0.1%5 | 252,423 | ||
TOTAL NET ASSETS—100% | $192,422,223 |
Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | |
Value as of 9/30/2020 | $6,466,298 |
Purchases at Cost | $29,345,577 |
Proceeds from Sales | $(28,674,500) |
Change in Unrealized Appreciation/Depreciation | $(149) |
Net Realized Gain/(Loss) | $(999) |
Value as of 3/31/2021 | $7,136,227 |
Shares Held as of 3/31/2021 | 7,134,800 |
Dividend Income | $1,604 |
1 | Non-income-producing security. |
2 | Market quotations and price evaluations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established by and under the general supervision of the Fund’s Board of Trustees (the “Trustees”). |
3 | 7-day net yield. |
4 | Also represents cost for federal tax purposes. |
5 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | $169,804,963 | $— | $0 | $169,804,963 |
International | 11,534,966 | — | — | 11,534,966 |
Exchange-Traded Fund | 3,693,644 | — | — | 3,693,644 |
Investment Company | 7,136,227 | — | — | 7,136,227 |
TOTAL SECURITIES | $192,169,800 | $— | $0 | $192,169,800 |
The following acronym(s) are used throughout this portfolio: | ||
ETF | —Exchange-Traded Fund |
Six Months Ended (unaudited) 3/31/2021 | Year Ended September 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Net Asset Value, Beginning of Period | $17.10 | $19.23 | $26.36 | $29.16 | $24.82 | $23.20 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.04 | 0.03 | 0.05 | 0.02 | 0.17 | 0.16 |
Net realized and unrealized gain (loss) | 9.92 | (2.09) | (3.03) | 1.47 | 4.80 | 1.96 |
Total From Investment Operations | 9.96 | (2.06) | (2.98) | 1.49 | 4.97 | 2.12 |
Less Distributions: | ||||||
Distributions from net investment income | (0.03) | (0.07) | (0.02) | (0.11) | (0.14) | (0.06) |
Distributions from net realized gain | — | — | (4.13) | (4.18) | (0.49) | (0.44) |
Total Distributions | (0.03) | (0.07) | (4.15) | (4.29) | (0.63) | (0.50) |
Net Asset Value, End of Period | $27.03 | $17.10 | $19.23 | $26.36 | $29.16 | $24.82 |
Total Return2 | 58.25% | (10.77)% | (11.25)% | 5.64% | 20.24% | 9.27% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.26%4 | 1.26% | 1.26% | 1.27% | 1.27% | 1.26% |
Net investment income | 0.39%4 | 0.16% | 0.26% | 0.09% | 0.64% | 0.70% |
Expense waiver/reimbursement5 | 0.27%4 | 0.21% | 0.21% | 0.16% | 0.17% | 0.15% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $67,801 | $45,527 | $62,463 | $94,210 | $102,606 | $126,015 |
Portfolio turnover | 53% | 89% | 74% | 84% | 66% | 89% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | Computed on an annualized basis. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Six Months Ended (unaudited) 3/31/2021 | Year Ended September 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Net Asset Value, Beginning of Period | $15.81 | $17.85 | $24.95 | $27.91 | $23.83 | $22.40 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | (0.04) | (0.10) | (0.09) | (0.17) | (0.03) | (0.01) |
Net realized and unrealized gain (loss) | 9.15 | (1.94) | (2.88) | 1.39 | 4.60 | 1.88 |
Total From Investment Operations | 9.11 | (2.04) | (2.97) | 1.22 | 4.57 | 1.87 |
Less Distributions: | ||||||
Distributions from net investment income | — | — | — | — | — | (0.00)2 |
Distributions from net realized gain | — | — | (4.13) | (4.18) | (0.49) | (0.44) |
Total Distributions | — | — | (4.13) | (4.18) | (0.49) | (0.44) |
Net Asset Value, End of Period | $24.92 | $15.81 | $17.85 | $24.95 | $27.91 | $23.83 |
Total Return3 | 57.62% | (11.43)% | (11.94)% | 4.82% | 19.34% | 8.47% |
Ratios to Average Net Assets: | ||||||
Net expenses4 | 2.04%5 | 2.04% | 2.01% | 2.02% | 2.02% | 2.01% |
Net investment income (loss) | (0.39)%5 | (0.63)% | (0.50)% | (0.68)% | (0.12)% | (0.05)% |
Expense waiver/reimbursement6 | 0.26%5 | 0.22% | 0.18% | 0.15% | 0.16% | 0.18% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $8,348 | $5,716 | $9,446 | $16,028 | $22,462 | $21,253 |
Portfolio turnover | 53% | 89% | 74% | 84% | 66% | 89% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
3 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | Computed on an annualized basis. |
6 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Six Months Ended (unaudited) 3/31/2021 | Year Ended September 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Net Asset Value, Beginning of Period | $16.74 | $18.83 | $25.93 | $28.78 | $24.51 | $22.91 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.05 | 0.03 | 0.05 | 0.02 | 0.16 | 0.15 |
Net realized and unrealized gain (loss) | 9.70 | (2.05) | (2.99) | 1.43 | 4.74 | 1.93 |
Total From Investment Operations | 9.75 | (2.02) | (2.94) | 1.45 | 4.90 | 2.08 |
Less Distributions: | ||||||
Distributions from net investment income | (0.03) | (0.07) | (0.03) | (0.12) | (0.14) | (0.04) |
Distributions from net realized gain | — | — | (4.13) | (4.18) | (0.49) | (0.44) |
Total Distributions | (0.03) | (0.07) | (4.16) | (4.30) | (0.63) | (0.48) |
Net Asset Value, End of Period | $26.46 | $16.74 | $18.83 | $25.93 | $28.78 | $24.51 |
Total Return2 | 58.26% | (10.78)% | (11.27)% | 5.58% | 20.22% | 9.23% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.26%4 | 1.27% | 1.32% | 1.29% | 1.28% | 1.32% |
Net investment income | 0.41%4 | 0.16% | 0.24% | 0.08% | 0.61% | 0.67% |
Expense waiver/reimbursement5 | 0.51%4 | 0.46% | 0.40% | 0.36% | 0.36% | 0.33% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $13,712 | $9,646 | $13,675 | $16,013 | $15,302 | $13,010 |
Portfolio turnover | 53% | 89% | 74% | 84% | 66% | 89% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | Computed on an annualized basis. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Six Months Ended (unaudited) 3/31/2021 | Year Ended September 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Net Asset Value, Beginning of Period | $17.13 | $19.29 | $26.48 | $29.30 | $24.93 | $23.31 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.07 | 0.07 | 0.10 | 0.09 | 0.24 | 0.22 |
Net realized and unrealized gain (loss) | 9.94 | (2.08) | (3.06) | 1.47 | 4.83 | 1.96 |
Total From Investment Operations | 10.01 | (2.01) | (2.96) | 1.56 | 5.07 | 2.18 |
Less Distributions: | ||||||
Distributions from net investment income | (0.07) | (0.15) | (0.10) | (0.20) | (0.21) | (0.12) |
Distributions from net realized gain | — | — | (4.13) | (4.18) | (0.49) | (0.44) |
Total Distributions | (0.07) | (0.15) | (4.23) | (4.38) | (0.70) | (0.56) |
Net Asset Value, End of Period | $27.07 | $17.13 | $19.29 | $26.48 | $29.30 | $24.93 |
Total Return2 | 58.54% | (10.57)% | (11.05)% | 5.87% | 20.56% | 9.54% |
Ratios to Average Net Assets: | ||||||
Net expenses3 | 1.01%4 | 1.01% | 1.01% | 1.01% | 1.02% | 1.01% |
Net investment income | 0.64%4 | 0.36% | 0.50% | 0.32% | 0.87% | 0.95% |
Expense waiver/reimbursement5 | 0.30%4 | 0.22% | 0.16% | 0.12% | 0.13% | 0.12% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $95,490 | $63,019 | $203,935 | $333,887 | $467,881 | $468,727 |
Portfolio turnover | 53% | 89% | 74% | 84% | 66% | 89% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | Computed on an annualized basis. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Six Months Ended (unaudited) 3/31/2021 | Year Ended September 30, | Period Ended 9/30/20161 | ||||
2020 | 2019 | 2018 | 2017 | |||
Net Asset Value, Beginning of Period | $17.15 | $19.21 | $26.39 | $29.19 | $24.84 | $21.94 |
Income From Investment Operations: | ||||||
Net investment income (loss)2 | 0.08 | 0.09 | 0.08 | 0.14 | 0.25 | 0.13 |
Net realized and unrealized gain (loss) | 9.95 | (2.09) | (3.02) | 1.44 | 4.80 | 2.77 |
Total From Investment Operations | 10.03 | (2.00) | (2.94) | 1.58 | 5.05 | 2.90 |
Less Distributions: | ||||||
Distributions from net investment income | (0.09) | (0.06) | (0.11) | (0.20) | (0.21) | — |
Distributions from net realized gain | — | — | (4.13) | (4.18) | (0.49) | — |
Total Distributions | (0.09) | (0.06) | (4.24) | (4.38) | (0.70) | — |
Net Asset Value, End of Period | $27.09 | $17.15 | $19.21 | $26.39 | $29.19 | $24.84 |
Total Return3 | 58.56% | (10.47)% | (11.00)% | 5.98% | 20.58% | 13.22% |
Ratios to Average Net Assets: | ||||||
Net expenses4 | 0.94%5 | 0.94% | 0.94% | 0.95% | 0.95% | 0.94%5 |
Net investment income | 0.71%5 | 0.53% | 0.37% | 0.52% | 0.94% | 1.07%5 |
Expense waiver/reimbursement6 | 0.26%5 | 0.21% | 0.14% | 0.11% | 0.11% | 0.11%5 |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $7,070 | $4,644 | $8,297 | $56,657 | $11,006 | $7,207 |
Portfolio turnover | 53% | 89% | 74% | 84% | 66% | 89%7 |
1 | Reflects operations for the period from March 29, 2016 (date of initial investment) to September 30, 2016. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | Computed on an annualized basis. |
6 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
7 | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended September 30, 2016. |
Assets: | |
Investment in securities, at value including $7,136,227 of investments in an affiliated holding* (identified cost $139,958,691) | $192,169,800 |
Income receivable from an affiliated holding | 203,240 |
Receivable for investments sold | 1,024,382 |
Receivable for shares sold | 442,834 |
Total Assets | 193,840,256 |
Liabilities: | |
Payable for investments purchased | 1,277,791 |
Payable for shares redeemed | 54,480 |
Payable for investment adviser fee (Note 5) | 3,509 |
Payable for administrative fee (Note 5) | 411 |
Payable for distribution services fee (Note 5) | 8,237 |
Payable for other service fees (Notes 2 and 5) | 16,958 |
Accrued expenses (Note 5) | 56,647 |
Total Liabilities | 1,418,033 |
Net assets for 7,150,754 shares outstanding | $192,422,223 |
Net Assets Consist of: | |
Paid-in capital | $146,383,987 |
Total distributable earnings (loss) | 46,038,236 |
Total Net Assets | $192,422,223 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($67,801,332 ÷ 2,508,434 shares outstanding), no par value, unlimited shares authorized | $27.03 |
Offering price per share (100/94.50 of $27.03) | $28.60 |
Redemption proceeds per share | $27.03 |
Class C Shares: | |
Net asset value per share ($8,348,284 ÷ 334,977 shares outstanding), no par value, unlimited shares authorized | $24.92 |
Offering price per share | $24.92 |
Redemption proceeds per share (99.00/100 of $24.92) | $24.67 |
Class R Shares: | |
Net asset value per share ($13,711,951 ÷ 518,179 shares outstanding), no par value, unlimited shares authorized | $26.46 |
Offering price per share | $26.46 |
Redemption proceeds per share | $26.46 |
Institutional Shares: | |
Net asset value per share ($95,490,432 ÷ 3,528,128 shares outstanding), no par value, unlimited shares authorized | $27.07 |
Offering price per share | $27.07 |
Redemption proceeds per share | $27.07 |
Class R6 Shares: | |
Net asset value per share ($7,070,224 ÷ 261,036 shares outstanding), no par value, unlimited shares authorized | $27.09 |
Offering price per share | $27.09 |
Redemption proceeds per share | $27.09 |
* | See information listed after the Fund’s Portfolio of Investments. |
Investment Income: | |
Dividends (including $1,604 received from an affiliated holding* and net of foreign taxes withheld of $5,430) | $1,335,851 |
Expenses: | |
Investment adviser fee (Note 5) | 726,808 |
Administrative fee (Note 5) | 63,408 |
Custodian fees | 7,065 |
Transfer agent fees (Note 2) | 100,749 |
Directors’/Trustees’ fees (Note 5) | 778 |
Auditing fees | 14,712 |
Legal fees | 11,994 |
Portfolio accounting fees | 47,932 |
Distribution services fee (Note 5) | 57,712 |
Other service fees (Notes 2 and 5) | 81,847 |
Share registration costs | 44,498 |
Printing and postage | 15,930 |
Miscellaneous (Note 5) | 14,977 |
TOTAL EXPENSES | 1,188,410 |
Waivers and Reimbursements: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (213,140) |
Waiver/reimbursement of other operating expenses (Notes 2 and 5) | (33,982) |
TOTAL WAIVERS AND REIMBURSEMENTS | (247,122) |
Net expenses | 941,288 |
Net investment income | 394,563 |
Realized and Unrealized Gain (Loss) on Investments: | |
Net realized gain on investments (including net realized loss of $(999) on sales of investments in an affiliated holding*) | 24,224,746 |
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $(149) on investments in an affiliated holding*) | 46,737,800 |
Net realized and unrealized gain (loss) on investments | 70,962,546 |
Change in net assets resulting from operations | $71,357,109 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 3/31/2021 | Year Ended 9/30/2020 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income (loss) | $394,563 | $625,150 |
Net realized gain (loss) | 24,224,746 | 3,605,272 |
Net change in unrealized appreciation/depreciation | 46,737,800 | (23,258,403) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 71,357,109 | (19,027,981) |
Distributions to Shareholders: | ||
Class A Shares | (64,125) | (217,697) |
Class R Shares | (15,319) | (49,102) |
Institutional Shares | (251,271) | (1,272,052) |
Class R6 Shares | (22,473) | (13,343) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (353,188) | (1,552,194) |
Share Transactions: | ||
Proceeds from sale of shares | 22,352,755 | 41,292,956 |
Net asset value of shares issued to shareholders in payment of distributions declared | 336,020 | 1,479,807 |
Cost of shares redeemed | (29,822,246) | (191,456,696) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (7,133,471) | (148,683,933) |
Change in net assets | 63,870,450 | (169,264,108) |
Net Assets: | ||
Beginning of period | 128,551,773 | 297,815,881 |
End of period | $192,422,223 | $128,551,773 |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class A Shares | $32,887 | $(2,926) |
Class C Shares | 4,648 | — |
Class R Shares | 5,922 | — |
Institutional Shares | 56,250 | (15,734) |
Class R6 Shares | 1,042 | — |
TOTAL | $100,749 | $(18,660) |
Other Service Fees Incurred | |
Class A Shares | $72,829 |
Class C Shares | 9,018 |
TOTAL | $81,847 |
Six Months Ended 3/31/2021 | Year Ended 9/30/2020 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 184,080 | $4,120,701 | 401,853 | $6,792,152 |
Shares issued to shareholders in payment of distributions declared | 2,820 | 63,395 | 10,372 | 214,593 |
Shares redeemed | (341,350) | (7,649,489) | (997,857) | (17,551,781) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | (154,450) | $(3,465,393) | (585,632) | $(10,545,036) |
Six Months Ended 3/31/2021 | Year Ended 9/30/2020 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 30,944 | $677,343 | 99,430 | $1,566,290 |
Shares issued to shareholders in payment of distributions declared | — | — | — | — |
Shares redeemed | (57,555) | (1,226,208) | (266,902) | (4,282,376) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (26,611) | $(548,865) | (167,472) | $(2,716,086) |
Six Months Ended 3/31/2021 | Year Ended 9/30/2020 | |||
Class R Shares: | Shares | Amount | Shares | Amount |
Shares sold | 73,644 | $1,660,385 | 108,599 | $1,765,742 |
Shares issued to shareholders in payment of distributions declared | 695 | 15,300 | 2,420 | 49,028 |
Shares redeemed | (132,413) | (3,068,912) | (261,067) | (4,597,359) |
NET CHANGE RESULTING FROM CLASS R SHARE TRANSACTIONS | (58,074) | $(1,393,227) | (150,048) | $(2,782,589) |
Six Months Ended 3/31/2021 | Year Ended 9/30/2020 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 595,764 | $15,175,052 | 1,732,256 | $28,971,602 |
Shares issued to shareholders in payment of distributions declared | 10,508 | 236,426 | 58,155 | 1,203,816 |
Shares redeemed | (755,975) | (16,906,614) | (8,682,700) | (159,668,332) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (149,703) | $(1,495,136) | (6,892,289) | $(129,492,914) |
Six Months Ended 3/31/2021 | Year Ended 9/30/2020 | |||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 30,584 | $719,274 | 130,351 | $2,197,170 |
Shares issued to shareholders in payment of distributions declared | 928 | 20,899 | 597 | 12,370 |
Shares redeemed | (41,257) | (971,023) | (292,030) | (5,356,848) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | (9,745) | $(230,850) | (161,082) | $(3,147,308) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (398,583) | $(7,133,471) | (7,956,523) | $(148,683,933) |
Short-Term | Long-Term | Total |
$18,044,548 | $8,317,713 | $26,362,261 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Percentage of Average Daily Net Assets of Class | |
Class A Shares | 0.05% |
Class C Shares | 0.75% |
Class R Shares | 0.50% |
Distribution Services Fees Incurred | Distribution Services Fees Waived | |
Class C Shares | $27,069 | $— |
Class R Shares | 30,643 | (15,322) |
TOTAL | $57,712 | $(15,322) |
Purchases | $81,651,598 |
Sales | $93,775,016 |
Beginning Account Value 10/1/2020 | Ending Account Value 3/31/2021 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $1,582.50 | $8.11 |
Class C Shares | $1,000 | $1,576.20 | $13.10 |
Class R Shares | $1,000 | $1,582.60 | $8.11 |
Institutional Shares | $1,000 | $1,585.40 | $6.51 |
Class R6 Shares | $1,000 | $1,585.60 | $6.06 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,018.65 | $6.34 |
Class C Shares | $1,000 | $1,014.76 | $10.25 |
Class R Shares | $1,000 | $1,018.65 | $6.34 |
Institutional Shares | $1,000 | $1,019.90 | $5.09 |
Class R6 Shares | $1,000 | $1,020.24 | $4.73 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 1.26% |
Class C Shares | 2.04% |
Class R Shares | 1.26% |
Institutional Shares | 1.01% |
Class R6 Shares | 0.94% |
Annual Evaluation of Adequacy and Effectiveness
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 314172271
CUSIP 314172172
CUSIP 314172263
CUSIP 31421N808
Share Class | Ticker | A | BEARX | C | PBRCX | Institutional | PBRIX |
Federated Hermes Prudent Bear Fund
A Portfolio of Federated Hermes Equity Funds
Percentage of Total Net Assets | |
Securities Sold Short | (77.2)% |
Derivative Contracts—Short (notional value)1 | (42.2)% |
U.S. Treasury Security | 48.1% |
Common Stocks | 28.3% |
Exchange-Traded Fund | 1.0% |
Preferred Stock | 0.9% |
Other Security Type2 | 0.6% |
Cash Equivalents3 | 24.4% |
Adjustment for Derivative Contracts (notional value)1 | 42.7% |
Collateral on Deposit for Securities Sold Short | 76.7% |
Other Assets and Liabilities—Net4 | (3.3)% |
TOTAL | 100% |
Sector Composition | Percentage of Total Securities Sold Short6 |
Broad Equity Index | 87.9% |
Health Care | 1.6% |
Communication Services | 1.6% |
Consumer Staples | 1.5% |
Industrials | 1.5% |
Financials | 1.3% |
Real Estate | 1.2% |
Utilities | 0.9% |
Information Technology | 0.8% |
Consumer Discretionary | 0.8% |
Materials | 0.5% |
Energy | 0.4% |
TOTAL | 100% |
1 | Derivative contracts may consist of futures, forwards, written options and swaps. More complete information regarding the Fund’s direct investments in derivative contracts, including unrealized appreciation (depreciation), value and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report. |
2 | Other Security Type consists of purchased put options. |
3 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. |
4 | Assets, other than investments in securities, securities sold short, derivative contracts and collateral on deposit for securities sold short, less liabilities. See Statement of Assets and Liabilities. |
5 | Sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
6 | Includes any short positions on futures contracts. |
Shares, Principal Amount or Contracts | Value | ||
U.S. TREASURY— 48.1% | |||
U.S. Treasury Bills— 48.1% | |||
$73,000,000 | 1,2 | United States Treasury Bill, 0.085%, 7/1/2021 (IDENTIFIED COST $72,984,315) | $72,995,401 |
COMMON STOCKS— 28.3% | |||
Communication Services— 4.2% | |||
800 | 3 | Alphabet, Inc., Class A | 1,650,016 |
150,000 | 3 | BBTV Holdings Inc. | 1,193,602 |
1,000 | Electronic Arts, Inc. | 135,370 | |
6,000 | 3 | Facebook, Inc. | 1,767,180 |
3,350 | 3 | Motorsport Gaming U.S. LLC | 77,921 |
26,000 | Verizon Communications, Inc. | 1,511,900 | |
TOTAL | 6,335,989 | ||
Consumer Discretionary— 3.3% | |||
450,000 | 3 | Deliveroo Holdings PLC | 1,783,252 |
10,000 | eBay, Inc. | 612,400 | |
85,000 | 3 | JOANN Inc. | 862,750 |
3,000 | McDonald’s Corp. | 672,420 | |
60,000 | 3 | Moonpig Group PLC | 351,212 |
2,000 | Starbucks Corp. | 218,540 | |
1,200 | 3 | Ulta Beauty, Inc. | 371,004 |
18,000 | 3 | Vasta Platform Ltd. | 177,300 |
TOTAL | 5,048,878 | ||
Consumer Staples— 2.4% | |||
10,000 | 3 | Bellring Brands, Inc. | 236,100 |
6,000 | 3 | Jde Peet’s B.V. | 220,229 |
6,000 | Kroger Co. | 215,940 | |
24,000 | 3 | Mission Produce, Inc. | 456,240 |
16,000 | Philip Morris International, Inc. | 1,419,840 | |
3,000 | Procter & Gamble Co. | 406,290 | |
40,000 | 3 | RLX Technology, Inc., ADR | 414,400 |
20,000 | 3 | The Duckhorn Portfolio, Inc. | 335,600 |
TOTAL | 3,704,639 | ||
Energy— 0.3% | |||
4,000 | Chevron Corp. | 419,160 | |
Financials— 4.9% | |||
6,000 | Ally Financial, Inc. | 271,260 |
Shares, Principal Amount or Contracts | Value | ||
COMMON STOCKS— continued | |||
Financials— continued | |||
8,000 | Citigroup, Inc. | $582,000 | |
132,000 | 3 | GoHealth, Inc. | 1,543,080 |
2,000 | Goldman Sachs Group, Inc. | 654,000 | |
30,276 | 3 | Guild Holdings Co. | 429,919 |
6,000 | MetLife, Inc. | 364,740 | |
96,000 | 3 | Oportun Financial Corp. | 1,988,160 |
27,084 | 3 | Patria Investments Ltd. | 471,803 |
18,000 | 3 | SelectQuote, Inc. | 531,180 |
6,000 | Synchrony Financial | 243,960 | |
16,000 | 3 | Velocity Financial, LLC | 141,920 |
15,000 | 3 | Vinci Partners Investments Ltd. | 197,250 |
TOTAL | 7,419,272 | ||
Health Care— 4.8% | |||
15,000 | 3 | Akouos, Inc. | 208,050 |
3,000 | AmerisourceBergen Corp. | 354,210 | |
1,400 | Amgen, Inc. | 348,334 | |
6,000 | 3 | Apria, Inc. | 167,580 |
1,000 | 3 | Biogen, Inc. | 279,750 |
16,169 | 3 | Checkmate Pharmaceuticals, Inc. | 196,292 |
20,000 | 3 | Connect Biopharma Holdings Ltd., ADR | 370,000 |
10,000 | 3 | Decibel Therapeutics, Inc. | 113,600 |
100,000 | 3 | Dialogue Health Technologies, Inc. | 1,219,862 |
5,000 | 3 | Exelixis, Inc. | 112,950 |
12,000 | 3 | Freeline Therapeutics Holdings PLC, ADR | 147,600 |
20,000 | 3 | Frequency Therapeutics, Inc. | 190,000 |
15,000 | 3 | Fusion Pharmaceuticals, Inc. | 160,800 |
12,000 | 3 | Galecto, Inc. | 72,900 |
2,600 | Gilead Sciences, Inc. | 168,038 | |
5,026 | 3 | Gracell Biotechnologies, Inc., ADR | 77,400 |
2,000 | 3 | Jazz Pharmaceuticals PLC. | 328,740 |
65,000 | 3 | Lucira Health, Inc. | 786,500 |
3,000 | Merck & Co., Inc. | 231,270 | |
3,000 | 3 | Neurocrine Biosciences, Inc. | 291,750 |
9,998 | 3 | Olink Holding AB, ADR | 359,928 |
30,000 | 3 | Ortho Clinical Diagnostics Holdings PLC | 578,850 |
18,194 | 3 | PolyPid Ltd. | 166,657 |
500 | 3 | Regeneron Pharmaceuticals, Inc. | 236,570 |
Shares, Principal Amount or Contracts | Value | ||
COMMON STOCKS— continued | |||
Health Care— continued | |||
15,000 | 3 | Talis Biomedical Corp. | $192,750 |
TOTAL | 7,360,381 | ||
Industrials— 2.7% | |||
2,000 | Eaton Corp. PLC | 276,560 | |
35,000 | 3 | InPost S.A. | 573,222 |
1,000 | Lockheed Martin Corp. | 369,500 | |
1,000 | Northrop Grumman Corp. | 323,640 | |
40,000 | 3 | Parsons Corp. | 1,617,600 |
5,000 | 3 | Shoals Technologies Group, Inc. | 173,900 |
6,000 | 3 | Southwest Airlines Co. | 366,360 |
10,000 | 3 | Sun Country Airlines Holdings | 342,800 |
TOTAL | 4,043,582 | ||
Information Technology— 4.3% | |||
500 | Broadcom, Inc. | 231,830 | |
20,000 | 3 | Cint Group AB | 188,700 |
30,000 | Cisco Systems, Inc. | 1,551,300 | |
2,000 | 3 | Digitalocean Holdings, Inc. | 84,260 |
68,522 | 3 | IBEX LTD | 1,507,484 |
11,000 | IBM Corp. | 1,465,860 | |
1,200 | 3 | Keysight Technologies, Inc. | 172,080 |
6,000 | Oracle Corp. | 421,020 | |
1,500 | Qualcomm, Inc. | 198,885 | |
40,000 | 3 | Semrush Holdings, Inc. | 476,400 |
10,000 | 3 | TELUS International (Cda) Inc. | 279,800 |
TOTAL | 6,577,619 | ||
Materials— 1.2% | |||
50,000 | 3 | Diversey Holdings, Ltd. | 735,500 |
80,000 | 3 | Sprott Physical Gold Trust | 1,072,800 |
TOTAL | 1,808,300 | ||
Real Estate— 0.2% | |||
2,000 | Crown Castle International Corp. | 344,260 | |
TOTAL COMMON STOCKS (IDENTIFIED COST $42,239,097) | 43,062,080 | ||
PREFERRED STOCK— 0.9% | |||
Health Care— 0.9% | |||
89,447 | 4 | Recursion Pharmaceuticals, Inc. (IDENTIFIED COST $899,998) | 1,370,756 |
Shares, Principal Amount or Contracts | Value | ||
3 | PURCHASED PUT OPTIONS— 0.6% | ||
3,600 | SPDR S&P 500 ETF Trust, Notional Amount $142,678,800, Exercise Price $240.00, Expiration Date 6/18/2021 | $127,800 | |
1,000 | SPDR S&P 500 ETF Trust, Notional Amount $39,633,000, Exercise Price $385.00, Expiration Date 4/16/2021 | 203,500 | |
1,600 | SPDR S&P 500 ETF Trust, Notional Amount $63,412,800, Exercise Price $240.00, Expiration Date 9/17/2021 | 212,000 | |
1,800 | SPDR S&P 500 ETF Trust, Notional Amount $71,339,400, Exercise Price $160.00, Expiration Date 6/18/2021 | 11,700 | |
2,400 | SPDR S&P 500 ETF Trust, Notional Amount $95,119,200, Exercise Price $180.00, Expiration Date 6/18/2021 | 25,200 | |
2,400 | SPDR S&P 500 ETF Trust, Notional Amount $95,119,200, Exercise Price $200.00, Expiration Date 12/17/2021 | 276,000 | |
2,400 | SPDR S&P 500 ETF Trust, Notional Amount $95,119,200, Exercise Price $200.00, Expiration Date 6/18/2021 | 39,600 | |
TOTAL PURCHASED PUT OPTIONS (IDENTIFIED COST $6,304,580) | 895,800 | ||
EXCHANGE-TRADED FUND— 1.0% | |||
44,000 | Financial Select Sector SPDR Fund (IDENTIFIED COST $1,514,731) | 1,498,200 | |
INVESTMENT COMPANY— 24.4% | |||
37,072,191 | Federated Hermes Government Obligations Fund, Premier Shares, 0.02%5 (IDENTIFIED COST $37,072,191) | 37,072,191 | |
TOTAL INVESTMENT IN SECURITIES—103.3% (IDENTIFIED COST $161,014,912)6 | 156,894,428 | ||
OTHER ASSETS AND LIABILITIES - NET—(3.3)%7 | (5,007,229) | ||
TOTAL NET ASSETS—100% | $151,887,199 |
Shares | Value | ||
Broad Equity Index— (62.7)% | |||
3,200 | 3 | ARK Fintech Innovation ETF | $163,520 |
2,100 | ARK Industrial Innovation ETF | 176,274 | |
1,050 | ARK Web x.0 ETF | 154,812 | |
13,500 | Invesco QQQ Trust Series 1 | 4,308,255 | |
38,000 | iShares FTSE/Xinhua China 25 | 1,773,080 | |
15,000 | iShares MSCI Brazil Capped ETF | 501,750 | |
50,000 | iShares MSCI Canada Index Fund | 1,702,500 | |
20,000 | iShares MSCI EAFE ETF | 1,517,400 | |
58,000 | iShares MSCI Emerging Markets ETF | 3,093,720 | |
37,000 | iShares Russell 2000 ETF | 8,174,780 |
Shares | Value | ||
Broad Equity Index— continued | |||
186,000 | S&P Depositary Receipts Trust | $73,717,380 | |
TOTAL | 95,283,471 | ||
Communication Services— (1.9)% | |||
25,000 | Communication Services Select Sector SPDR | 1,833,000 | |
8,500 | 3 | DISH Network Corp., Class A | 307,700 |
300 | 3 | Netflix, Inc. | 156,498 |
3,500 | New York Times Co., Class A | 177,170 | |
2,000 | 3 | T-Mobile USA, Inc. | 250,580 |
1,000 | Walt Disney Co. | 184,520 | |
TOTAL | 2,909,468 | ||
Consumer Discretionary— (0.9)% | |||
7,200 | Consumer Discretionary Select Sector SPDR Fund | 1,210,104 | |
3,300 | 3 | Terminix Global Holdings, Inc. | 157,311 |
TOTAL | 1,367,415 | ||
Consumer Staples— (1.8)% | |||
3,000 | Bunge Ltd. | 237,810 | |
19,000 | Consumer Staples Select Sector SPDR Fund | 1,297,890 | |
2,500 | Hormel Foods Corp. | 119,450 | |
2,800 | McCormick & Co., Inc. | 249,648 | |
2,300 | PepsiCo, Inc. | 325,335 | |
10,500 | The Coca-Cola Co. | 553,455 | |
TOTAL | 2,783,588 | ||
Energy— (0.4)% | |||
4,000 | Exxon Mobil Corp. | 223,320 | |
3,000 | Marathon Petroleum Corp. | 160,470 | |
5,000 | ONEOK, Inc. | 253,300 | |
TOTAL | 637,090 | ||
Financials— (1.6)% | |||
3,500 | Axis Capital Holdings Ltd. | 173,495 | |
800 | CME Group, Inc. | 163,384 | |
2,000 | Cullen Frost Bankers, Inc. | 217,520 | |
9,000 | Loews Corp. | 461,520 | |
460 | 3 | Markel Corp. | 524,225 |
1,400 | Reinsurance Group of America | 176,470 | |
6,000 | Truist Financial Corp. | 349,920 | |
10,000 | Umpqua Holdings Corp. | 175,500 | |
5,000 | Wells Fargo & Co. | 195,350 | |
TOTAL | 2,437,384 | ||
Health Care— (1.9)% | |||
700 | Becton Dickinson & Co. | 170,205 | |
7,000 | 3 | Boston Scientific Corp. | 270,550 |
4,000 | 3 | Centene Corp. | 255,640 |
Shares | Value | ||
Health Care— continued | |||
700 | Cooper Cos., Inc. | $268,863 | |
9,000 | 3 | Elanco Animal Health, Inc. | 265,050 |
2,300 | Encompass Health Corp. | 188,370 | |
1,400 | Medtronic PLC | 165,382 | |
4,000 | Perrigo Co. PLC | 161,880 | |
8,000 | SPDR S&P Biotech ETF | 1,085,200 | |
300 | Teleflex, Inc. | 124,638 | |
TOTAL | 2,955,778 | ||
Industrials— (1.8)% | |||
3,000 | 3M Co. | 578,040 | |
21,700 | Industrial Select Sector SPDR Fund | 2,136,365 | |
TOTAL | 2,714,405 | ||
Information Technology— (0.9)% | |||
500 | 3 | Ansys, Inc. | 169,780 |
1,600 | 3 | Cree, Inc. | 173,008 |
2,200 | 3 | Dell Technologies, Inc. | 193,930 |
1,400 | Fidelity National Information Services, Inc. | 196,854 | |
12,000 | Hewlett Packard Enterprise Co. | 188,880 | |
2,000 | Paychex, Inc. | 196,040 | |
600 | 3 | Tyler Technologies, Inc. | 254,718 |
TOTAL | 1,373,210 | ||
Materials— (0.7)% | |||
12,500 | Materials Select Sector SPDR Fund | 985,000 | |
Real Estate— (1.5)% | |||
9,400 | Equity Commonwealth | 261,320 | |
3,500 | Federal Realty Investment Trust | 355,075 | |
33,000 | Real Estate Select Sector SPDR Fund | 1,303,170 | |
7,200 | VEREIT, Inc. | 278,064 | |
TOTAL | 2,197,629 | ||
Utilities— (1.1)% | |||
1,400 | Atmos Energy Corp. | 138,390 | |
4,800 | Edison International | 281,280 | |
17,000 | Utilities Select Sector SPDR Fund | 1,088,680 | |
1,700 | Xcel Energy, Inc. | 113,067 | |
TOTAL | 1,621,417 | ||
Total Securities Sold Short (PROCEEDS $79,278,720) | $117,265,855 |
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized Appreciation (Depreciation) |
Short Futures: | ||||
3S&P 500 E-Mini Short Futures | 211 | $41,856,070 | June 2021 | $(356,596) |
3E-Mini Russel 2000 Short Futures | 200 | $22,225,000 | June 2021 | $1,096,430 |
NET UNREALIZED APPRECIATION ON FUTURES CONTRACTS | $739,834 |
Value as of 9/30/2020 | Purchases at Cost | Proceeds from Sales | |
Health Care: | |||
Akouos, Inc. | $137,220 | $164,555 | $— |
Frequency Therapeutics, Inc. | $461,040 | $292,037 | $(789,433) |
TOTAL OF AFFILIATED COMPANIES TRANSACTIONS | $598,260 | $456,592 | $(789,433) |
Change in Unrealized Appreciation/ Depreciation | Net Realized Gain/ (Loss) | Value as of 3/31/2021 | Shares Held as of 3/31/2021 | Dividend Income |
$(93,725) | $— | $208,050 | 15,000 | $— |
$61,279 | $165,077 | $190,000 | 20,000 | $— |
$(32,446) | $165,077 | $398,050 | 35,000 | $— |
Federated Hermes Government Obligations Fund, Premier Shares | |
Value as of 9/30/2020 | $159,462,830 |
Purchases at Cost | $135,872,855 |
Proceeds from Sales | $(258,263,494) |
Change in Unrealized Appreciation/Depreciation | N/A |
Net Realized Gain/(Loss) | N/A |
Value as of 3/31/2021 | $37,072,191 |
Shares Held as of 3/31/2021 | 37,072,191 |
Dividend Income | $8,897 |
1 | All or a portion of this security is pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding short futures and securities sold short contracts. |
2 | Discount rate at time of purchase. |
3 | Non-income-producing security. |
4 | Market quotations and price evaluations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established by and under the general supervision of the Fund’s Board of Trustees (the “Trustees”). |
5 | 7-day net yield. |
6 | Also represents cost for federal tax purposes. |
7 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
U.S. Treasury | $— | $72,995,401 | $— | $72,995,401 |
Purchased Put Options | 895,800 | — | — | 895,800 |
Equity Securities: | ||||
Common Stocks | ||||
Domestic | 30,209,129 | — | — | 30,209,129 |
International | 12,059,500 | 793,451 | — | 12,852,951 |
Preferred Stock | ||||
Domestic | — | — | 1,370,756 | 1,370,756 |
Exchange-Traded Fund | 1,498,200 | — | — | 1,498,200 |
Investment Company | 37,072,191 | — | — | 37,072,191 |
TOTAL SECURITIES | $81,734,820 | $73,788,852 | $1,370,756 | $156,894,428 |
Other Financial Instruments: | ||||
Assets | ||||
Futures Contracts | $1,096,430 | $— | $— | $1,096,430 |
Liabilities | ||||
Securities Sold Short | (117,265,855) | — | — | (117,265,855) |
Futures Contracts | (356,596) | — | — | (356,596) |
TOTAL OTHER FINANCIAL INSTRUMENTS | $(116,526,021) | $— | $— | $(116,526,021) |
The following acronym(s) are used throughout this portfolio: | ||
ADR | —American Depositary Receipt | |
ETF | —Exchange-Traded Fund | |
SPDR | —Standard & Poor’s Depositary Receipt |
Six Months Ended (unaudited) 3/31/2021 | Year Ended September 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Net Asset Value, Beginning of Period | $10.11 | $12.58 | $13.27 | $16.27 | $19.50 | $22.70 |
Income From Investment Operations: | ||||||
Net investment income (loss)2 | (0.13) | (0.19) | 0.10 | (0.11) | (0.25) | (0.26) |
Net realized and unrealized gain (loss) | (1.61) | (2.21) | (0.79) | (2.89) | (2.98) | (2.94) |
Total From Investment Operations | (1.74) | (2.40) | (0.69) | (3.00) | (3.23) | (3.20) |
Less Distributions: | ||||||
Distributions from net investment income | — | (0.07) | — | — | — | — |
Net Asset Value, End of Period | $8.37 | $10.11 | $12.58 | $13.27 | $16.27 | $19.50 |
Total Return3 | (17.21)% | (19.15)% | (5.20)% | (18.44)% | (16.56)% | (14.10)% |
Ratios to Average Net Assets: | ||||||
Net expenses4 | 3.13%5 | 2.85% | 2.84% | 3.54% | 3.34% | 3.23%6 |
Net expenses excluding dividends and other expenses related to short sales | 1.78%5 | 1.78% | 1.78% | 1.89% | 1.78% | 1.76%6 |
Net investment income (loss) | (2.85)%5 | (1.65)% | 0.74% | (0.74)% | (1.40)% | (1.22)% |
Expense waiver/reimbursement7 | 0.13%5 | 0.11% | 0.09% | 0.10% | 0.07% | 0.04% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $40,768 | $59,987 | $53,827 | $57,253 | $82,782 | $151,943 |
Portfolio turnover | 69% | 247% | 313% | 284% | 315% | 430% |
1 | On February 5, 2016, the Fund effected a 1 for 10 reverse share split. As a result of the reverse share split: (1) the number of outstanding Shares of the Fund decreased by a factor of 10; and (2) since the Fund’s total number of shares outstanding decreased, the net asset value per Fund Share (NAV/Share) increased. The reverse share split did not affect the value of the Fund’s net assets or each shareholders proportional ownership interest in those assets. Per share data has been restated where applicable. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | Computed on an annualized basis. |
6 | The net expense ratios are calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratio is 3.23%, after taking into account these expense reductions for the year ended September 30, 2016. The net expense ratio excluding dividends and other expenses related to short sales is also calculated without reduction for these fees paid indirectly for expense offset arrangements. |
7 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Six Months Ended (unaudited) 3/31/2021 | Year Ended September 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Net Asset Value, Beginning of Period | $8.81 | $10.98 | $11.67 | $14.42 | $17.41 | $20.40 |
Income From Investment Operations: | ||||||
Net investment income (loss)2 | (0.14) | (0.25) | 0.003 | (0.20) | (0.34) | (0.37) |
Net realized and unrealized gain (loss) | (1.41) | (1.92) | (0.69) | (2.55) | (2.65) | (2.62) |
Total From Investment Operations | (1.55) | (2.17) | (0.69) | (2.75) | (2.99) | (2.99) |
Net Asset Value, End of Period | $7.26 | $8.81 | $10.98 | $11.67 | $14.42 | $17.41 |
Total Return4 | (17.59)% | (19.76)% | (5.91)% | (19.07)% | (17.17)% | (14.66)% |
Ratios to Average Net Assets: | ||||||
Net expenses5 | 3.90%6 | 3.63% | 3.59% | 4.28% | 4.09% | 3.98%7 |
Net expenses excluding dividends and other expenses related to short sales | 2.53%6 | 2.53% | 2.53% | 2.63% | 2.53% | 2.51%7 |
Net investment income (loss) | (3.62)%6 | (2.46)% | 0.01% | (1.49)% | (2.16)% | (1.98)% |
Expense waiver/reimbursement8 | 0.13%6 | 0.11% | 0.09% | 0.10% | 0.07% | 0.04% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $9,173 | $12,696 | $10,422 | $12,090 | $18,278 | $29,624 |
Portfolio turnover | 69% | 247% | 313% | 284% | 315% | 430% |
1 | On February 5, 2016, the Fund effected a 1 for 10 reverse share split. As a result of the reverse share split: (1) the number of outstanding Shares of the Fund decreased by a factor of 10; and (2) since the Fund’s total number of shares outstanding decreased, the net asset value per Fund Share (NAV/Share) increased. The reverse share split did not affect the value of the Fund’s net assets or each shareholders proportional ownership interest in those assets. Per share data has been restated where applicable. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Represents less than $0.01. |
4 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized. |
5 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
6 | Computed on an annualized basis. |
7 | The net expense ratios are calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratio is 3.98%, after taking into account these expense reductions for the year ended September 30, 2016. The net expense ratio excluding dividends and other expenses related to short sales is also calculated without reduction for these fees paid indirectly for expense offset arrangements. |
8 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Six Months Ended (unaudited) 3/31/2021 | Year Ended September 30, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Net Asset Value, Beginning of Period | $10.38 | $12.92 | $13.59 | $16.63 | $19.88 | $23.00 |
Income From Investment Operations: | ||||||
Net investment income (loss)2 | (0.12) | (0.22) | 0.14 | (0.07) | (0.20) | (0.20) |
Net realized and unrealized gain (loss) | (1.66) | (2.21) | (0.81) | (2.97) | (3.05) | (2.92) |
Total From Investment Operations | (1.78) | (2.43) | (0.67) | (3.04) | (3.25) | (3.12) |
Less Distributions: | ||||||
Distributions from net investment income | — | (0.11) | — | — | — | — |
Net Asset Value, End of Period | $8.60 | $10.38 | $12.92 | $13.59 | $16.63 | $19.88 |
Total Return3 | (17.15)% | (18.97)% | (4.93)% | (18.28)% | (16.35)% | (13.57)% |
Ratios to Average Net Assets: | ||||||
Net expenses4 | 2.75%5 | 2.64% | 2.56% | 3.26% | 3.04% | 2.93%6 |
Net expenses excluding dividends and other expenses related to short sales | 1.53%5 | 1.53% | 1.53% | 1.63% | 1.53% | 1.51%6 |
Net investment income (loss) | (2.49)%5 | (1.79)% | 1.03% | (0.48)% | (1.09)% | (0.92)% |
Expense waiver/reimbursement7 | 0.13%5 | 0.09% | 0.09% | 0.10% | 0.06% | 0.04% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $101,945 | $196,933 | $77,603 | $86,727 | $107,720 | $172,765 |
Portfolio turnover | 69% | 247% | 313% | 284% | 315% | 430% |
1 | On February 5, 2016, the Fund effected a 1 for 10 reverse share split. As a result of the reverse share split: (1) the number of outstanding Shares of the Fund decreased by a factor of 10; and (2) since the Fund’s total number of shares outstanding decreased, the net asset value per Fund Share (NAV/Share) increased. The reverse share split did not affect the value of the Fund’s net assets or each shareholders proportional ownership interest in those assets. Per share data has been restated where applicable. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | Computed on an annualized basis. |
6 | The net expense ratios are calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratio is 2.93%, after taking into account these expense reductions for the year ended September 30, 2016. The net expense ratio excluding dividends and other expenses related to short sales is also calculated without reduction for these fees paid indirectly for expense offset arrangements. |
7 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
Assets: | |
Investment in securities, at value including $37,072,191 of investment in an affiliated holding and $398,050 of investment in affiliated companies* (identified cost $161,014,912) | $156,894,428 |
Cash denominated in foreign currencies (identified cost $102) | 102 |
Deposit at broker for short sales | 117,632,166 |
Income receivable | 24,619 |
Income receivable from an affiliated holding | 1,062 |
Interest receivable on short positions | 12,574 |
Receivable for investments sold | 1,011,367 |
Receivable for shares sold | 237,860 |
Total Assets | 275,814,178 |
Liabilities: | |
Securities sold short, at value (proceeds $79,278,720) | 117,265,855 |
Dividends payable on short positions | 263,556 |
Payable for investments purchased | 5,528,256 |
Payable for shares redeemed | 204,399 |
Payable for variation margin on futures contracts | 508,835 |
Payable for investment adviser fee (Note 5) | 4,427 |
Payable for administrative fee (Note 5) | 328 |
Payable for distribution services fee (Note 5) | 5,981 |
Payable for other service fees (Notes 2 and 5) | 17,102 |
Accrued expenses (Note 5) | 128,240 |
Total Liabilities | 123,926,979 |
Net assets for 17,989,405 shares outstanding | $151,887,199 |
Net Assets Consist of: | |
Paid-in capital | $1,115,001,039 |
Total distributable earnings (loss) | (963,113,840) |
Total Net Assets | $151,887,199 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
Class A Shares: | |
Net asset value per share ($40,768,450 ÷ 4,873,447 shares outstanding), no par value, unlimited shares authorized | $8.37 |
Offering price per share (100/94.50 of $8.37) | $8.86 |
Redemption proceeds per share | $8.37 |
Class C Shares: | |
Net asset value per share ($9,173,311 ÷ 1,262,726 shares outstanding), no par value, unlimited shares authorized | $7.26 |
Offering price per share | $7.26 |
Redemption proceeds per share (99.00/100 of $7.26) | $7.19 |
Institutional Shares: | |
Net asset value per share ($101,945,438 ÷ 11,853,232 shares outstanding), no par value, unlimited shares authorized | $8.60 |
Offering price per share | $8.60 |
Redemption proceeds per share | $8.60 |
* | See information listed after the Fund’s Portfolio of Investments. |
Investment Income: | |
Dividends (including $8,897 received from an affiliated holding* and net of foreign taxes withheld of $235) | $219,509 |
Interest | 48,803 |
TOTAL INCOME | 268,312 |
Expenses: | |
Investment adviser fee (Note 5) | 1,242,986 |
Administrative fee (Note 5) | 78,284 |
Custodian fees | 19,661 |
Transfer agent fees | 149,336 |
Directors’/Trustees’ fees (Note 5) | 1,044 |
Auditing fees | 16,615 |
Legal fees | 5,208 |
Portfolio accounting fees | 44,682 |
Distribution services fee (Note 5) | 40,302 |
Other service fees (Notes 2 and 5) | 73,294 |
Share registration costs | 61,112 |
Printing and postage | 21,577 |
Miscellaneous (Note 5) | 15,288 |
Expenses related to short positions | 1,249,532 |
TOTAL EXPENSES | 3,018,921 |
Waiver/reimbursement of investment adviser fee (Note 5) | (129,220) |
Net expenses | 2,889,701 |
Net investment income (loss) | (2,621,389) |
Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions, Futures Contracts and Short Sales: | |
Net realized gain on investments (including net realized gain of $165,077 on sales of investments in affiliated companies*) | $11,952,224 |
Net realized gain on foreign currency transactions | 42,436 |
Net realized loss on futures contracts | (22,590,796) |
Net realized loss on short sales | (34,002,436) |
Net change in unrealized depreciation of investments (including net change in unrealized depreciation of $(32,446) on investments in affiliated companies*) | 777,328 |
Net change in unrealized appreciation/depreciation of translation of assets and liabilities in foreign currency | (873) |
Net change in unrealized depreciation of futures contracts | 2,082,231 |
Net change in unrealized depreciation of securities sold short | 4,069,636 |
Net realized and unrealized gain (loss) on investments, foreign currency transactions, futures contracts and short sales | (37,670,250) |
Change in net assets resulting from operations | $(40,291,639) |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 3/31/2021 | Year Ended 9/30/2020 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income (loss) | $(2,621,389) | $(4,222,981) |
Net realized gain (loss) | (44,598,572) | (52,556,773) |
Net change in unrealized appreciation/depreciation | 6,928,322 | (42,345,617) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | (40,291,639) | (99,125,371) |
Distributions to Shareholders: | ||
Class A Shares | — | (298,160) |
Institutional Shares | — | (631,166) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | — | (929,326) |
Share Transactions: | ||
Proceeds from sale of shares | 145,733,094 | 750,374,039 |
Net asset value of shares issued to shareholders in payment of distributions declared | — | 870,654 |
Cost of shares redeemed | (223,170,224) | (523,426,433) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (77,437,130) | 227,818,260 |
Change in net assets | (117,728,769) | 127,763,563 |
Net Assets: | ||
Beginning of period | 269,615,968 | 141,852,405 |
End of period | $151,887,199 | $269,615,968 |
Other Service Fees Incurred | |
Class A Shares | $59,881 |
Class C Shares | 13,413 |
TOTAL | $73,294 |
Fair Value of Derivative Instruments | ||||
Assets | Liabilities | |||
Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||||
Equity contracts | $— | Payable for variation margin on futures contracts | $(739,834)* | |
Equity contracts | Purchased options, within Investment in securities at value | 895,800 | — | |
Total derivatives not accounted for as hedging instruments under ASC Topic 815 | $895,800 | $(739,834) |
* | Includes cumulative net appreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |||
Futures Contracts | Purchased Options Contracts1 | Total | |
Equity contracts | $(22,590,796) | $(1,932,842) | $(24,523,638) |
1 | The net realized loss on Purchased Options Contracts is found within the Net realized gain on investments on the Statement of Operations. |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |||
Futures Contracts | Purchased Options Contracts2 | Total | |
Equity contracts | $2,082,231 | $(2,011,068) | $71,163 |
2 | The net change in unrealized depreciation of Purchased Options Contracts is found within the Net change in unrealized depreciation of investments on the Statement of Operations. |
Six Months Ended 3/31/2021 | Year Ended 9/30/2020 | |||
Class A Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,838,867 | $17,002,072 | 6,984,958 | $88,152,318 |
Shares issued to shareholders in payment of distributions declared | — | — | 24,235 | 288,639 |
Shares redeemed | (2,901,281) | (26,709,930) | (5,351,337) | (63,485,389) |
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS | (1,062,414) | $(9,707,858) | 1,657,856 | $24,955,568 |
Six Months Ended 3/31/2021 | Year Ended 9/30/2020 | |||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 219,571 | $1,787,584 | 1,108,513 | $12,305,574 |
Shares issued to shareholders in payment of distributions declared | — | — | — | — |
Shares redeemed | (398,126) | (3,164,663) | (616,145) | (6,342,497) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | (178,555) | $(1,377,079) | 492,368 | $5,963,077 |
Six Months Ended 3/31/2021 | Year Ended 9/30/2020 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 13,280,230 | $126,943,438 | 49,596,234 | $649,916,147 |
Shares issued to shareholders in payment of distributions declared | — | — | 47,667 | 582,015 |
Shares redeemed | (20,405,727) | (193,295,631) | (36,671,028) | (453,598,547) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (7,125,497) | $(66,352,193) | 12,972,873 | $196,899,615 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (8,366,466) | $(77,437,130) | 15,123,097 | $227,818,260 |
Short-Term | Long-Term | Total |
$655,446,520 | $209,658,046 | $865,104,566 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.100% | on assets up to $50 billion |
0.075% | on assets over $50 billion |
Percentage of Average Daily Net Assets of Class | |
Class A Shares | 0.05% |
Class C Shares | 0.75% |
Distribution Services Fees Incurred | |
Class C Shares | $40,302 |
Purchases | $212,260,223 |
Sales | $130,888,694 |
Beginning Account Value 10/1/2020 | Ending Account Value 3/31/2021 | Expenses Paid During Period1 | |
Actual: | |||
Class A Shares | $1,000 | $827.90 | $14.26 |
Class C Shares | $1,000 | $824.10 | $17.74 |
Institutional Shares | $1,000 | $828.50 | $12.54 |
Hypothetical (assuming a 5% return before expenses): | |||
Class A Shares | $1,000 | $1,009.32 | $15.68 |
Class C Shares | $1,000 | $1,005.48 | $19.50 |
Institutional Shares | $1,000 | $1,011.22 | $13.79 |
1 | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class A Shares | 3.13% |
Class C Shares | 3.90% |
Institutional Shares | 2.75% |
Annual Evaluation of Adequacy and Effectiveness
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31421N600
CUSIP 31421N501
Item 2. | Code of Ethics |
Not Applicable
Item 3. | Audit Committee Financial Expert |
Not Applicable
Item 4. | Principal Accountant Fees and Services |
Not Applicable
Item 5. | Audit Committee of Listed Registrants |
Not Applicable
Item 6. | Schedule of Investments |
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
Item 8. | Portfolio Managers of Closed-End Management Investment Companies |
Not Applicable
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
Not Applicable
Item 10. | Submission of Matters to a Vote of Security Holders |
No Changes to Report
Item 11. | Controls and Procedures |
(a) The registrant’s President and Treasurer have concluded that the
registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the registrant’s most recent fiscal half-year (the registrant’s second fiscal half-year in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies |
Not Applicable
Item 13. | Exhibits |
(a)(1) Code of Ethics- Not Applicable to this Report.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Federated Hermes Equity Funds
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date May 24, 2021
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /S/ J. Christopher Donahue
J. Christopher Donahue
Principal Executive Officer
Date May 24, 2021
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date May 24, 2021