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Federated Index Trust

Filed: 28 Dec 20, 12:00pm

United States

Securities and Exchange Commission

Washington, D.C. 20549

 

Form N-CSR

Certified Shareholder Report of Registered Management Investment Companies

 

 

 

 

811-6061

 

(Investment Company Act File Number)

 

Federated Hermes Index Trust

_______________________________________________________________

 

(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: 10/31/20

 

 

Date of Reporting Period: 10/31/20

 

 

 

 

 

 

 

 

 

Item 1.Reports to Stockholders

 

Annual Shareholder Report
October 31, 2020
Share Class | Ticker
Institutional | FMCRX
Service | FMDCX
R6 | FMCLX
 

Federated Hermes Mid-Cap Index Fund
(formerly, Federated Mid-Cap Index Fund)
Fund Established 1992

A Portfolio of Federated Hermes Index Trust
(formerly, Federated Index Trust)
IMPORTANT NOTICE REGARDING REPORT DELIVERY
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4. Your election to receive reports in paper will apply to all funds held with the Fund complex or your financial intermediary.

Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee

J. Christopher
Donahue
President
Federated Hermes Mid-Cap Index Fund
Letter from the President
Dear Valued Shareholder,
I am pleased to present the Annual Shareholder Report for your fund covering the period from November 1, 2019 through October 31, 2020.
As we all confront the unprecedented effects of the coronavirus and the challenges it presents to our families, communities, businesses and the financial markets, I want you to know that everyone at Federated Hermes is dedicated to helping you successfully navigate the markets ahead. You can count on us for the insights, investment management knowledge and client service that you have come to expect. Please refer to our website, FederatedInvestors.com, for timely updates on this and other economic and market matters.
Thank you for investing with us. I hope you find this information useful and look forward to keeping you informed.
Sincerely,
J. Christopher Donahue, President
   

Management’s Discussion of Fund Performance (unaudited)
The total return of Federated Hermes Mid-Cap Index Fund (the “Fund”), based on net asset value for the 12-month reporting period ended October 31, 2020, was -1.41% for Institutional Shares, -1.63% for Service Shares and -1.35% for Class R6 Shares. The total return of the Standard and Poor’s MidCap 400® Index (S&P 400)1, the Fund’s broad-based securities market index, was -1.15% for the same period. The Fund’s total return for the most recently completed fiscal year reflected actual cash flows, transaction costs and other expenses which were not reflected in the total return of the S&P 400.
The Fund normally invests its assets primarily in the common stocks included in the S&P 400. Under normal circumstances, Fund management will also use enhanced strategies (discussed further below) in an attempt to improve the performance of the portfolio relative to the S&P 400 to compensate for fund expenses and tracking error (difference in the Fund’s performance relative to the performance of the S&P 400). During the reporting period, the Fund’s investment strategy focused on the use of enhanced strategies, which was the most significant factor affecting the Fund’s performance relative to the S&P 400.
The following discussion will focus on the performance of the Fund’s Class R6 Shares relative to the S&P 400.
Market Overview
During the reporting period, the domestic equity market had positive performance as evidenced by the 8.56% return of the S&P Composite 1500® Index.2 The largest stocks in the S&P Composite 1500® Index, as represented by the S&P 100® Index,3 led the market with a 13.87% return for the reporting period. Large-cap stocks followed with the S&P 500® Index4 returning 9.71% for the same period. Mid-cap stock performance trailed its larger peers as the S&P Mid-Cap 400® Index returned -1.15%. Small-cap stocks in the S&P Composite 1500® Index as represented by the S&P SmallCap 600® Index5 had the worst performance of the market cap segments, returning -7.72% for the reporting period. Growth stocks outperformed value stocks as the S&P Composite 1500® Growth Index6 returned 22.83% versus the -7.59% return of the S&P Composite 1500® Value Index.7
Within the S&P 400, sector8 performance was mixed during the reporting period. Health Care, Consumer Staples, Information Technology, Consumer Discretionary and Industrials all had positive performance for the reporting period, while Materials, Financials, Communication Services, Utilities, Real Estate and Energy had negative performance. Health Care led the way (25.93%), followed by Consumer Staples (14.10%) and Information Technology (13.07%). The Energy sector posted the weakest results (-45.34%), followed by Real Estate (-27.83%) and Utilities (-21.28%).
Annual Shareholder Report
1

Etsy, Inc. (Consumer Discretionary), SolarEdge Technologies, Inc. (Information Technology) and Monolithic Power Systems, Inc. (Information Technology) posted the strongest contribution to performance in the S&P 400, while National Retail Properties, Inc. (Real Estate), Sabre Corp. (Information Technology) and EPR Properties (Real Estate) detracted the most from S&P 400 performance for the reporting period.
Enhanced Strategies
Portfolio management of the enhanced strategies of the Fund consisted of overweighting and underweighting stocks relative to the S&P 400 based upon Fund management’s quantitative analysis of the securities. During the reporting period, the Fund underperformed the S&P 400 by 0.20% on a net basis and outperformed the S&P 400 by 0.08% on a gross basis. This outperformance on a gross basis was primarily due to the outperformance of the quantitative strategy. The Fund invested in a stock-based strategy that also utilized S&P 400 futures9 to provide equity exposure on the Fund’s cash balances. The trading of futures contracts had a positive effect on the Fund’s performance.
1
Please see the footnotes to the line graphs below for definitions of, and further information about, the S&P 400.
2
The S&P Composite 1500® Index combines three leading indices: the S&P 500® Index, the S&P MidCap 400® Index and the S&P SmallCap 600® Index to cover approximately 90% of the U.S. market capitalization.*
3
The S&P 100® Index, a sub-set of the S&P 500® Index, measures the performance of large-cap companies in the United States. The Index comprises 100 major, blue chip companies across multiple industry groups. Individual stock options are listed for each index constituent.*
4
The S&P 500® Index is an unmanaged capitalization weighted index of 500 stocks designated to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.*
5
The S&P SmallCap 600® Index measures the small-cap segment of the U.S. equity market. The index is designed to be an investable portfolio of companies that meet specific inclusion criteria to ensure that they are liquid and financially viable.*
6
The S&P Composite 1500® Growth Index measures growth stocks using three factors: sales growth, the ratio of earnings change to price and momentum. S&P Style Indices divide the complete market capitalization of each parent index into growth and value segments. Constituents are drawn from the S&P 1500® Index.*
7
The S&P Composite 1500® Value Index measures value stocks using three factors: the ratios of book value, earnings and sales to price. S&P Style Indices divide the complete market capitalization of each parent index into growth and value segments. Constituents are drawn from the S&P 1500® Index.*
8
Sector classifications are based upon the classification of the Standard & Poor’s Global Industry Classification Standard.
9
The Fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments.
*
The index is unmanaged, and it is not possible to invest directly in an index.
Annual Shareholder Report
2

FUND PERFORMANCE AND GROWTH OF A $10,000 INVESTMENT
The graph below illustrates the hypothetical investment of $10,0001 in the Federated Hermes Mid-Cap Index Fund from October 31, 2010 to October 31, 2020, compared to the Standard & Poor’s MidCap 400® Index (S&P 400).2 The Average Annual Total Return table below shows returns for each class averaged over the stated periods.
Growth of a $10,000 Investment
Growth of $10,000 as of October 31, 2020
The Fund offers multiple share classes whose performance may be greater than or less than its other share class(es) due to differences in sales charges and expenses. See the Average Annual Return table below for the returns of additional classes not shown in the line graph above.
Average Annual Total Returns for the Period Ended 10/31/2020
 
1 Year
5 Years
10 Years
Institutional Shares3
-1.41%
7.09%
10.07%
Service Shares
-1.63%
6.82%
9.84%
Class R6 Shares3
-1.35%
7.05%
9.96%
S&P 400
-1.15%
7.39%
10.36%
Annual Shareholder Report
3

Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month-end performance and after-tax returns, visit FederatedInvestors.com or call 1-800-341-7400. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured.
1
The Fund’s performance assumes the reinvestment of all dividends and distributions. The S&P 400 has been adjusted to reflect reinvestment of dividends on securities in the index.
2
The Standard & Poor’s MidCap 400® Index is an unmanaged capitalization weighted index of common stocks representing all major industries in the mid-range of the U.S. stock market. The index is unmanaged, and it is not possible to invest directly in an index. The S&P 400 is not adjusted to reflect taxes, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund’s performance. The S&P 400 is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.
3
The Fund’s Institutional Shares commenced operations on January 4, 2012. The Fund’s Class R6 Shares commenced operations on October 18, 2016. The Fund offers one other class of shares: Service Shares. For the period prior to the commencement of operations of Institutional Shares, the performance information shown is for the Fund’s Service Shares, adjusted to remove any voluntary waiver of Fund expenses related to the Service Shares that occurred during the period prior to the commencement of Institutional Shares. For the period prior to the commencement of operations of the R6 Shares, the performance information shown is for the Fund’s Service Shares, adjusted to remove any voluntary waiver of Fund expenses related to the Service Shares that occurred during the period prior to the commencement of the R6 Shares.
Annual Shareholder Report
4

Portfolio of Investments Summary Table (unaudited)
At October 31, 2020, the Fund’s sector composition1 for its equity securities investments was as follows:
Sector Composition
Percentage of
Total Net Assets
Industrials
17.7%
Information Technology
15.8%
Consumer Discretionary
14.5%
Financials
14.3%
Health Care
11.3%
Real Estate
8.8%
Materials
5.9%
Consumer Staples
3.9%
Utilities
3.7%
Communication Services
1.6%
Energy
1.2%
Securities Lending Collateral2
0.3%
Cash Equivalents3
1.3%
Derivative Contracts4
0.0%
Other Assets and Liabilities—Net5
(0.3)%
TOTAL6
100%
1
Except for Securities Lending Collateral, Cash Equivalents, Derivative Contracts 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 Manager assigns a classification to securities not classified by the GICS and to securities for which the Manager does not have access to the classification made by the GICS.
2
Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements.
3
Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing securities lending collateral.
4
Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as, applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund’s performance may be larger than its unrealized appreciation (depreciation) may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract’s significance to the portfolio. More complete information regarding the Fund’s direct investments in derivative contracts, including unrealized appreciation (depreciation) 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.
5
Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities.
6
The Fund purchases index futures contracts to efficiently manage cash flows resulting from shareholder purchases and redemptions, dividend and capital gain payments to shareholders and corporate actions while maintaining exposure to the Standard & Poor’s MidCap 400 Index (S&P 400) and minimizing trading costs. Taking into consideration these open index futures contracts, the Fund’s effective total exposure to the S&P 400 is effectively 100.0%.
Annual Shareholder Report
5

Portfolio of Investments
October 31, 2020
Shares
 
 
Value
 
1
COMMON STOCKS—98.7%
 
 
 
Communication Services—1.6%
 
8,274
2
AMC Networks, Inc.
$175,823
1,299
 
Cable One, Inc.
2,249,686
8,244
3
Cinemark Holdings, Inc.
67,518
30,986
 
New York Times Co., Class A
1,228,905
50,648
 
Tegna, Inc.
609,295
23,786
 
Telephone and Data System, Inc.
404,362
12,461
 
TripAdvisor, Inc.
238,130
8,520
 
Wiley (John) & Sons, Inc., Class A
263,779
11,208
 
World Wrestling Entertainment, Inc.
407,523
16,893
2
Yelp, Inc.
332,285
 
 
TOTAL
5,977,306
 
 
Consumer Discretionary—14.5%
 
18,065
 
Aaron’s Holdings Company, Inc.
944,077
12,391
2
Adient PLC
262,937
10,464
2
Adtalem Global Education, Inc.
245,276
20,477
 
American Eagle Outfitters, Inc.
280,740
13,575
2
AutoNation, Inc.
770,110
40,102
 
Block (H&R), Inc.
692,161
19,023
 
Boyd Gaming Corp.
603,410
18,069
 
Brunswick Corp.
1,151,176
40,691
2
Caesars Entertainment Corp.
1,823,771
10,047
 
Carter’s, Inc.
818,328
5,969
3
Choice Hotels International, Inc.
521,392
7,984
 
Churchill Downs, Inc.
1,190,814
6,533
 
Columbia Sportswear Co.
487,296
3,734
 
Cracker Barrel Old Country Store, Inc.
425,004
34,619
 
Dana, Inc.
484,320
6,356
2
Deckers Outdoor Corp.
1,610,420
15,005
 
Dick’s Sporting Goods, Inc.
850,033
17,675
 
Dunkin’ Brands Group Inc.
1,762,374
10,947
2
Five Below, Inc.
1,459,673
24,026
 
Foot Locker, Inc.
886,079
9,632
2
Fox Factory Holding Corp.
809,859
61,179
 
Gentex Corp.
1,692,823
55,532
 
Goodyear Tire & Rubber Co.
459,805
Annual Shareholder Report
6

Shares
 
 
Value
 
1
COMMON STOCKS—continued
 
 
 
Consumer Discretionary—continued
 
1,001
 
Graham Holdings Co.
$380,720
12,701
2
Grand Canyon Education, Inc.
995,377
20,811
2
GrubHub, Inc.
1,539,182
35,245
 
Harley-Davidson, Inc.
1,158,856
6,527
2
Helen of Troy Ltd.
1,237,519
2,766
 
Jack in the Box, Inc.
221,446
20,386
 
KB HOME
657,448
36,400
 
Kohl’s Corp.
774,956
12,347
 
Lear Corp.
1,491,641
5,502
 
Lithia Motors, Inc., Class A
1,263,094
9,445
 
Marriott Vacations Worldwide Corp.
912,387
74,681
2
Mattel, Inc.
1,028,357
5,719
2
Murphy USA, Inc.
699,376
11,579
3
Nordstrom, Inc.
140,106
12,988
2
Ollie’s Bargain Outlet Holding, Inc.
1,131,125
9,456
 
Papa John’s International, Inc.
724,330
31,275
2
Penn National Gaming, Inc.
1,688,224
14,742
 
Polaris, Inc., Class A
1,339,458
3,433
2
RH
1,150,845
13,525
2
Scientific Games Corp.
431,177
43,421
 
Service Corp. International
2,010,826
9,148
 
Six Flags Entertainment Corp.
197,780
24,286
2
Skechers USA, Inc., Class A
770,109
7,353
 
Strategic Education, Inc.
610,740
30,104
2
Taylor Morrison Home Corp.
650,246
10,988
2
Tempur Sealy International, Inc.
977,932
13,853
 
Texas Roadhouse, Inc.
970,126
41,245
 
The Wendy’s Co.
901,203
12,438
 
Thor Industries, Inc.
1,052,006
21,180
 
Toll Brothers, Inc.
895,490
7,071
2
TopBuild Corp.
1,083,348
30,892
2
TRI Pointe Group, Inc.
507,556
16,735
2
Urban Outfitters, Inc.
373,860
3,637
2
Visteon Corp.
326,057
17,577
 
Williams-Sonoma, Inc.
1,603,198
6,519
 
Wingstop, Inc.
758,355
12,170
2
WW International, Inc.
257,517
19,914
 
Wyndham Destinations, Inc.
649,794
Annual Shareholder Report
7

Shares
 
 
Value
 
1
COMMON STOCKS—continued
 
 
 
Consumer Discretionary—continued
 
21,241
 
Wyndham Hotels & Resorts, Inc.
$987,919
 
 
TOTAL
54,781,564
 
 
Consumer Staples—3.9%
 
29,699
2
BJ’s Wholesale Club Holdings, Inc.
1,137,175
7,935
 
Casey’s General Stores, Inc.
1,337,603
73,921
 
Coty, Inc. - CL A
214,371
40,026
2
Darling Ingredients, Inc.
1,721,118
12,934
2
Edgewell Personal Care Co.
339,130
12,481
 
Energizer Holdings, Inc.
491,127
41,847
 
Flowers Foods, Inc.
986,752
17,470
2
Grocery Outlet Holding Corp.
769,029
17,388
2
Hain Celestial Group, Inc.
534,681
14,333
 
Ingredion, Inc.
1,016,066
3,275
 
Lancaster Colony Corp.
544,109
12,039
 
Nu Skin Enterprises, Inc., Class A
594,125
13,465
2
Post Holdings, Inc.
1,156,644
4,622
 
Sanderson Farms, Inc.
591,477
25,641
2
Sprouts Farmers Market, Inc.
488,461
1,969
2
The Boston Beer Co., Inc., Class A
2,046,145
2,636
 
Tootsie Roll Industries, Inc.
78,764
17,137
2
TreeHouse Foods, Inc.
665,601
 
 
TOTAL
14,712,378
 
 
Energy—1.2%
 
62,536
 
Antero Midstream Corp.
358,331
44,829
2
Championx Corp.
391,357
29,539
 
Cimarex Energy Co.
749,405
46,422
2
CNX Resources Corp.
450,294
69,052
 
EQT Corp.
1,045,447
88,847
 
Equitrans Midstream Corp.
645,029
14,472
 
Murphy Oil Corp.
111,724
12,559
 
World Fuel Services Corp.
264,367
95,305
2
WPX Energy Inc.
439,356
 
 
TOTAL
4,455,310
 
 
Financials—14.3%
 
10,809
 
Affiliated Managers Group
814,674
2,798
 
Alleghany Corp.
1,530,310
16,376
 
American Financial Group, Inc.
1,227,217
36,632
 
Associated Banc-Corp.
501,492
Annual Shareholder Report
8

Shares
 
 
Value
 
1
COMMON STOCKS—continued
 
 
 
Financials—continued
 
19,477
 
BancorpSouth Bank
$455,957
12,381
 
Bank of Hawaii Corp.
750,784
18,390
 
Bank OZK
455,704
21,807
2
Brighthouse Financial, Inc.
721,812
50,972
 
Brown & Brown
2,217,792
24,476
 
Cathay Bancorp, Inc.
575,920
15,404
 
CIT Group Holdings, Inc.
453,648
33,360
 
CNO Financial Group, Inc.
592,140
21,498
 
Commerce Bancshares, Inc.
1,338,251
11,771
 
Cullen Frost Bankers, Inc.
827,148
32,035
 
East West Bancorp, Inc.
1,168,637
26,141
 
Eaton Vance Corp.
1,562,970
19,873
 
Essent Group Ltd.
791,939
9,522
 
Evercore, Inc., Class A
757,380
8,273
 
FactSet Research Systems
2,535,675
21,669
3
Federated Hermes, Inc.
517,889
25,305
 
First American Financial Corp.
1,128,350
8,705
 
First Cash, Inc.
453,008
30,084
 
First Financial Bankshares, Inc.
896,804
125,867
 
First Horizon National Corp.
1,310,275
76,398
 
FNB Corp. (PA)
577,569
39,534
3
Fulton Financial Corp.
434,479
61,853
2
Genworth Financial, Inc., Class A
243,082
19,959
 
Glacier Bancorp, Inc.
714,532
9,863
 
Hancock Whitney Corp.
225,567
7,938
 
Hanover Insurance Group, Inc.
759,349
31,777
 
Home Bancshares, Inc.
527,498
16,669
 
Interactive Brokers Group, Inc., Class A
792,944
18,618
 
International Bancshares Corp.
515,346
35,115
 
Janus Henderson Group PLC
853,295
49,715
 
Jefferies Financial Group, Inc.
969,940
13,027
 
Kemper Corp.
803,245
1,152
2,3
LendingTree, Inc.
372,776
5,018
 
Mercury General Corp.
204,283
64,570
 
Navient Corp.
517,206
122,792
 
New York Community Bancorp, Inc.
1,020,402
64,841
 
Old Republic International Corp.
1,055,611
27,828
 
PacWest Bancorp
535,411
Annual Shareholder Report
9

Shares
 
 
Value
 
1
COMMON STOCKS—continued
 
 
 
Financials—continued
 
17,688
 
Pinnacle Financial Partners, Inc.
$809,934
10,280
 
Primerica, Inc.
1,133,267
19,735
 
Prosperity Bancshares, Inc.
1,087,596
15,354
 
Reinsurance Group of America
1,551,061
11,081
 
RenaissanceRe Holdings Ltd.
1,792,019
8,301
 
RLI Corp.
719,697
26,094
 
SEI Investments Co.
1,282,520
16,707
 
Selective Insurance Group, Inc.
869,766
13,852
 
Signature Bank
1,118,410
87,287
 
SLM Corp.
802,168
46,112
 
Sterling Bancorp
616,979
11,637
 
Stifel Financial Corp.
680,299
34,157
 
Synovus Financial Corp.
888,082
35,029
 
TCF Financial Corp.
953,139
6,330
2
Texas Capital Bancshares, Inc.
284,850
22,178
 
Trustmark Corp.
518,743
8,804
 
UMB Financial Corp.
535,899
32,297
 
Umpqua Holdings Corp.
405,650
30,164
3
United Bankshares, Inc.
791,202
94,202
 
Valley National Bancorp
719,703
15,075
 
Washington Federal, Inc.
320,947
21,240
 
Webster Financial Corp. Waterbury
684,140
13,579
 
Wintrust Financial Corp.
668,494
 
 
TOTAL
53,942,876
 
 
Health Care—11.3%
 
20,862
2
Acadia Healthcare Co., Inc.
743,730
7,949
2
Amedisys, Inc.
2,058,791
19,286
2
Arrowhead Pharmaceuticals, Inc.
1,105,088
10,660
2
Avanos Medical, Inc.
376,831
8,356
 
Bio-Techne Corp.
2,109,138
9,063
 
Cantel Medical Corp.
433,574
10,793
2
Charles River Laboratories International, Inc.
2,457,566
3,898
 
Chemed Corp.
1,864,491
11,741
2
Emergent BioSolutions, Inc.
1,056,338
21,378
 
Encompass Health Corp.
1,310,685
67,690
2
Exelixis, Inc.
1,386,291
15,922
2
Globus Medical, Inc.
829,855
11,627
2
Haemonetics Corp.
1,175,373
Annual Shareholder Report
10

Shares
 
 
Value
 
1
COMMON STOCKS—continued
 
 
 
Health Care—continued
 
17,557
2
HealthEquity Inc.
$904,010
14,253
 
Hill-Rom Holdings, Inc.
1,298,021
4,108
2
ICU Medical, Inc.
730,361
14,826
2
Integra Lifesciences Corp.
653,827
12,091
2
Jazz Pharmaceuticals Plc.
1,742,313
6,789
2
LHC Group, Inc.
1,470,158
3,940
2
Ligand Pharmaceuticals, Inc., Class B
324,853
6,672
2
Livanova PLC
335,869
10,990
2
Masimo Corp.
2,459,782
20,849
2
MEDNAX Inc.
265,825
5,750
2
Medpace Holdings, Inc.
637,905
12,881
2
Molina Healthcare, Inc.
2,401,920
30,406
2
Nektar Therapeutics
481,631
11,700
2
Neogen Corp.
815,958
7,820
2
NuVasive, Inc.
347,443
11,575
3
Patterson Cos., Inc.
287,928
6,695
2
Penumbra, Inc.
1,747,596
13,755
2
PRA Health Sciences, Inc.
1,340,287
10,046
2
Prestige Consumer Healthcare, Inc.
331,819
9,125
2
Quidel Corp.
2,448,146
10,521
2
Repligen Corp.
1,752,483
14,315
2
Syneos Health, Inc.
759,840
29,449
2
Tenet Healthcare Corp.
722,678
11,196
2
United Therapeutics Corp.
1,502,839
 
 
TOTAL
42,671,243
 
 
Industrials—17.7%
 
9,094
 
Acuity Brands, Inc.
810,639
35,582
2
AECOM
1,595,497
14,035
 
AGCO Corp.
1,081,116
11,550
2
ASGN, Inc.
770,154
12,508
2
Avis Budget Group, Inc.
421,144
13,700
2
Axon Enterprise, Inc.
1,354,930
7,132
 
Brinks Co. (The)
305,464
26,899
2
Builders Firstsource, Inc.
815,040
11,929
 
Carlisle Cos., Inc.
1,477,645
11,932
2
Clean Harbors, Inc.
632,038
16,877
2
Colfax Corp.
458,886
20,270
 
CoreLogic, Inc.
1,559,371
Annual Shareholder Report
11

Shares
 
 
Value
 
1
COMMON STOCKS—continued
 
 
 
Industrials—continued
 
14,260
 
Crane Co.
$723,695
9,489
 
Curtiss Wright Corp.
800,492
27,075
 
Donaldson Co., Inc.
1,286,063
10,337
2
Dycom Industries, Inc.
671,285
14,727
 
Emcor Group, Inc.
1,004,234
9,787
 
EnerSys, Inc.
700,749
43,840
 
Fluor Corp.
497,584
7,727
2
FTI Consulting, Inc.
760,800
4,923
 
GATX Corp.
336,142
14,857
2
Generac Holdings, Inc.
3,122,199
36,181
 
Graco, Inc.
2,239,604
14,757
 
Healthcare Services Group, Inc.
337,640
19,361
 
Hexcel Corp.
648,206
10,529
 
HNI Corp.
342,719
11,707
 
Hubbell, Inc.
1,703,486
30,279
2
IAA Spinco Inc.
1,713,489
5,284
 
Insperity, Inc.
404,649
19,647
 
ITT Corp.
1,188,840
45,823
2
Jet Blue Airways Corp.
548,501
30,947
 
KAR Auction Services, Inc.
450,588
12,780
 
Kennametal, Inc.
396,180
14,163
2
Kirby Corp.
545,134
26,914
 
Knight-Swift Transportation Holdings, Inc.
1,022,463
8,184
 
Landstar System, Inc.
1,020,545
7,547
 
Lennox International, Inc.
2,050,218
12,704
 
Lincoln Electric Holdings
1,293,521
15,430
 
Manpower, Inc.
1,047,234
13,202
2
Mastec, Inc.
655,347
11,867
2
Mercury Systems, Inc.
817,399
10,311
2
Middleby Corp.
1,026,357
14,057
 
Miller Herman, Inc.
428,317
7,703
 
MSA Safety, Inc.
1,016,180
9,681
 
MSC Industrial Direct Co.
674,378
12,856
 
Nordson Corp.
2,486,736
39,441
 
nVent Electric PLC
711,910
14,561
 
OshKosh Truck Corp.
980,829
26,537
 
Owens Corning, Inc.
1,737,377
10,793
 
Regal Beloit Corp.
1,064,729
Annual Shareholder Report
12

Shares
 
 
Value
 
1
COMMON STOCKS—continued
 
 
 
Industrials—continued
 
12,699
 
Ryder System, Inc.
$625,553
9,592
 
Simpson Manufacturing Co., Inc.
851,002
19,600
2
Stericycle, Inc.
1,221,080
31,736
2
SunRun, Inc.
1,650,907
6,783
 
Terex Corp.
167,472
11,494
 
Tetra Tech, Inc.
1,159,860
15,562
 
Timken Co.
929,051
23,238
 
Toro Co.
1,907,840
22,845
2
Trex Co., Inc.
1,588,641
10,687
 
Trinity Industries, Inc.
201,343
39,262
2
Univar, Inc.
651,357
4,424
 
Valmont Industries, Inc.
627,987
7,087
 
Watsco, Inc.
1,588,480
16,987
 
Werner Enterprises, Inc.
645,846
13,234
 
Woodward, Inc.
1,052,765
20,559
2
XPO Logistics, Inc.
1,850,310
 
 
TOTAL
66,457,237
 
 
Information Technology—15.8%
 
24,295
2
ACI Worldwide, Inc.
708,685
11,304
 
Alliance Data Systems Corp.
582,608
17,591
2
Arrow Electronics, Inc.
1,370,163
23,137
 
Avnet, Inc.
570,790
4,161
 
Belden, Inc.
128,492
11,597
 
Blackbaud, Inc.
572,196
5,371
2
CACI International, Inc., Class A
1,120,015
25,969
 
CDK Global, Inc.
1,119,264
28,157
2
Ceridian HCM Holding, Inc.
2,427,697
33,052
2
Ciena Corp.
1,301,918
13,231
2
Cirrus Logic, Inc.
911,219
6,160
 
CMC Materials, Inc.
875,890
37,599
 
Cognex Corp.
2,477,774
7,033
2
Coherent, Inc.
880,110
9,334
2
Commvault Systems, Inc.
369,533
21,302
2
Cree, Inc.
1,354,807
27,868
2
Enphase Energy, Inc.
2,733,572
6,815
2
Fair Isaac & Co., Inc.
2,667,732
16,352
2
First Solar, Inc.
1,423,360
23,848
2
II-VI, Inc.
1,084,369
Annual Shareholder Report
13

Shares
 
 
Value
 
1
COMMON STOCKS—continued
 
 
 
Information Technology—continued
 
6,174
 
InterDigital, Inc.
$345,620
7,306
2
j2 Global, Inc.
495,931
31,021
 
Jabil, Inc.
1,028,036
23,836
 
KBR, Inc.
531,304
5,166
 
Littelfuse, Inc.
1,022,558
14,354
2
LiveRamp Holdings, Inc.
948,656
19,195
2
Lumentum Holdings, Inc.
1,587,235
14,179
2
Manhattan Associates, Inc.
1,212,304
13,008
 
Maximus, Inc.
879,081
11,821
 
MKS Instruments, Inc.
1,281,278
9,920
 
Monolithic Power Systems
3,170,432
24,012
 
National Instruments Corp.
751,095
30,115
2
NCR Corp.
611,937
14,366
2
NetScout Systems, Inc.
294,790
7,938
2
Paylocity Corp.
1,472,658
39,463
 
Perspecta, Inc.
707,572
25,188
2
PTC, Inc.
2,112,769
7,055
2
Qualys, Inc.
619,782
42,138
 
Sabre Corp.
274,740
20,002
2
SailPoint Technologies Holding
830,283
13,306
 
Science Applications International Corp.
1,016,179
17,788
2
Semtech Corp.
976,383
9,289
2
Silicon Laboratories, Inc.
951,751
10,862
2
Solaredge Technologies, Inc.
2,799,029
7,104
2
Synaptics, Inc.
544,664
10,481
 
Synnex Corp.
1,379,719
15,779
2
Teradata Corp.
289,860
54,470
2
Trimble, Inc.
2,621,641
9,658
 
Universal Display Corp.
1,915,278
8,958
2
ViaSat, Inc.
303,676
31,586
 
Vishay Intertechnology, Inc.
512,325
11,006
2
WEX, Inc.
1,392,809
 
 
TOTAL
59,561,569
 
 
Materials—5.9%
 
13,908
 
Aptargroup, Inc.
1,586,764
12,518
 
Ashland Global Holdings, Inc.
873,381
13,535
 
Avient Corp.
420,532
13,378
 
Cabot Corp.
508,498
Annual Shareholder Report
14

Shares
 
 
Value
 
1
COMMON STOCKS—continued
 
 
 
Materials—continued
 
37,466
 
Chemours Co./The
$754,565
34,786
 
Commercial Metals Corp.
718,331
6,865
 
Compass Minerals International, Inc.
414,509
13,493
 
Domtar, Corp.
322,213
9,116
 
Eagle Materials, Inc.
777,139
6,846
 
Greif, Inc., Class A
277,879
9,760
2
Ingevity Corp.
535,629
30,575
 
Louisiana-Pacific Corp.
873,833
8,074
 
Minerals Technologies, Inc.
441,567
1,112
 
Newmarket Corp.
397,751
50,319
 
O-I Glass, Inc.
474,508
18,957
 
Olin Corp.
313,738
15,784
 
Reliance Steel & Aluminum Co.
1,720,298
14,185
 
Royal Gold, Inc.
1,685,320
28,239
 
RPM International, Inc.
2,390,996
10,176
 
Scotts Miracle-Gro Co.
1,526,909
8,762
 
Sensient Technologies Corp.
573,298
16,366
 
Silgan Holdings, Inc.
563,809
21,452
 
Sonoco Products Co.
1,048,788
44,919
 
Steel Dynamics, Inc.
1,414,050
26,693
3
United States Steel Corp.
257,854
42,595
 
Valvoline, Inc.
837,844
7,027
 
Worthington Industries, Inc.
345,799
 
 
TOTAL
22,055,802
 
 
Real Estate—8.8%
 
31,366
 
American Campus Communities, Inc.
1,174,970
68,225
 
Brixmor Property Group, Inc.
747,746
21,087
 
Camden Property Trust
1,945,065
9,078
 
Coresite Realty Corp.
1,083,550
32,446
 
Corporate Office Properties Trust
727,764
38,831
 
Cousins Properties, Inc.
989,414
28,248
 
Cyrusone, Inc.
2,007,020
35,779
 
Douglas Emmett, Inc.
844,384
10,043
 
EastGroup Properties, Inc.
1,336,522
10,739
 
EPR PPTYS
256,018
32,561
 
First Industrial Realty Trust
1,296,253
30,009
3
Geo Group, Inc.
265,880
28,745
 
Healthcare Realty Trust, Inc.
799,111
Annual Shareholder Report
15

Shares
 
 
Value
 
1
COMMON STOCKS—continued
 
 
 
Real Estate—continued
 
22,353
 
Highwoods Properties, Inc.
$665,449
35,400
 
Hudson Pacific Properties Inc.
681,804
23,457
 
JBG Smith Properties
547,721
11,773
 
Jones Lang LaSalle, Inc.
1,328,701
22,471
 
Kilroy Realty Corp.
1,057,935
19,583
 
Lamar Advertising Co.
1,213,363
10,015
 
Life Storage, Inc.
1,143,212
1,116
3
Macerich Co. (The)
7,767
106,178
 
Medical PPTYS Trust, Inc.
1,892,092
39,258
 
National Retail Properties, Inc.
1,256,649
51,216
 
Omega Healthcare Investors, Inc.
1,475,533
35,503
 
Park Hotels & Resorts, Inc.
352,545
15,614
 
Pebblebrook Hotel Trust
187,056
43,903
 
Physicians Realty Trust
740,205
19,166
 
PotlatchDeltic Corp.
796,347
5,924
 
PS Business Parks, Inc.
675,514
23,365
 
Rayonier, Inc.
593,004
26,518
 
Rexford Industrial Realty, Inc.
1,232,026
47,706
 
Sabra Health Care REIT, Inc.
627,811
40,692
 
Service Properties Trust
293,389
23,748
 
Spirit Realty Capital, Inc.
713,627
51,596
 
STORE Capital Corp.
1,326,017
8,537
 
Taubman Centers, Inc.
285,307
27,625
 
Urban Edge Properties
259,675
28,612
 
Weingarten Realty Investors
453,786
 
 
TOTAL
33,280,232
 
 
Utilities—3.7%
 
7,982
 
Allete, Inc.
411,712
13,179
 
Black Hills Corp.
746,722
48,298
 
Essential Utilities, Inc.
1,989,878
22,981
 
Hawaiian Electric Industries, Inc.
759,292
10,693
 
Idacorp, Inc.
938,097
52,063
 
MDU Resources Group, Inc.
1,237,017
24,433
 
National Fuel Gas Co.
976,343
14,553
 
New Jersey Resources Corp.
424,656
11,794
 
Northwestern Corp.
614,821
42,912
 
OGE Energy Corp.
1,320,402
11,141
 
ONE Gas, Inc.
769,175
Annual Shareholder Report
16

Shares
 
 
Value
 
1
COMMON STOCKS—continued
 
 
 
Utilities—continued
 
16,784
 
PNM Resources, Inc.
$839,200
12,934
 
Southwest Gas Holdings, Inc.
850,022
10,668
 
Spire, Inc.
597,835
47,080
 
UGI Corp.
1,522,567
 
 
TOTAL
13,997,739
 
 
TOTAL COMMON STOCKS
(IDENTIFIED COST $245,384,750)
371,893,256
 
 
INVESTMENT COMPANIES—1.6%
 
1,077,921
 
Federated Hermes Government Obligations Fund, Premier
Shares, 0.03%4
1,077,921
4,784,197
 
Federated Hermes Institutional Prime Value Obligations Fund,
Institutional Shares, 0.10%4
4,786,111
 
 
TOTAL INVESTMENT COMPANIES
(IDENTIFIED COST $5,864,344)
5,864,032
 
 
TOTAL INVESTMENT IN SECURITIES—100.3%
(IDENTIFIED COST $251,249,094)5
377,757,288
 
 
OTHER ASSETS AND LIABILITIES - NET—(0.3)%6
(1,145,302)
 
 
TOTAL NET ASSETS—100%
$376,611,986
At October 31, 2020, the Fund had the following outstanding futures contracts:
Description
Number of
Contracts
Notional
Value
Expiration
Date
Value and
Unrealized
Appreciation
Long Futures
2S&P MidCap 400 E-Mini Index
27
$5,118,120
December 2020
$17,912
Unrealized Appreciation on Futures Contracts is included in “Other Assets and Liabilities—Net.”
Annual Shareholder Report
17

Affiliated fund holdings are investment companies which are managed by the Manager or an affiliate of the Manager. Transactions with affiliated fund holdings during the period ended October 31, 2020, were as follows:
 
Federated
Hermes, Inc.
Federated Hermes
Government
Obligations Fund,
Premier Shares*
Federated Hermes
Institutional
Prime Value
Obligations Fund,
Institutional Shares*
Total of
Affiliated
Transactions
Value as of 10/31/2019
$947,883
$16,277,418
$17,111,094
$34,336,395
Purchases at Cost
$63,244,646
$174,101,822
$237,346,468
Proceeds from Sales
$(236,912)
$(78,444,143)
$(186,422,555)
$(265,103,610)
Change in
Unrealized
Appreciation/
Depreciation
$(267,992)
N/A
$(2,783)
$(270,775)
Net
Realized Gain/(Loss)
$74,910
N/A
$(1,467)
$73,443
Value as of 10/31/2020
$517,889
$1,077,921
$4,786,111
$6,381,921
Shares Held as
of 10/31/2020
21,669
1,077,921
4,784,197
5,883,787
Dividend Income
$28,453
$73,722
$125,022
$227,197
*
All or a portion of the balance/activity for the fund relates to cash collateral on security lending transactions.
1
The Fund purchases index futures contracts to efficiently manage cash flows resulting from shareholder purchases and redemptions, dividend and capital gain payments to shareholders and corporate actions while maintaining exposure to the S&P MidCap 400 Index and minimizing trading costs. The underlying face amount, at value, of open index futures contracts is $5,118,120 at October 31, 2020, which represents 1.4% of total net assets. Taking into consideration these open index futures contracts, the Fund’s effective total exposure to the S&P MidCap 400 Index is 100%.
2
Non-income-producing security.
3
All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers.
4
7-day net yield.
5
The cost of investments for federal tax purposes amounts to $256,808,103.
6
Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.
Note: The categories of investments are shown as a percentage of total net assets at October 31, 2020.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
Annual Shareholder Report
18

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
As of October 31, 2020, all investments of the Fund utilized Level 1 inputs in valuing the Fund’s assets carried at fair value.
The following acronym is used throughout this portfolio:
REIT
—Real Estate Investment Trust
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
19

Financial Highlights–Institutional Shares
(For a Share Outstanding Throughout Each Period)
Year Ended October 31
2020
2019
2018
2017
2016
Net Asset Value, Beginning of Period
$20.69
$23.69
$27.75
$25.13
$27.25
Income From Investment Operations:
 
 
 
 
 
Net investment income
0.20
0.26
0.32
0.261
0.341
Net realized and unrealized gain (loss)
(0.44)
1.37
(0.01)
5.22
1.03
TOTAL FROM INVESTMENT OPERATIONS
(0.24)
1.63
0.31
5.48
1.37
Less Distributions:
 
 
 
 
 
Distributions from net investment income
(0.22)
(0.27)
(0.31)
(0.28)
(0.32)
Distributions from net realized gain
(1.88)
(4.36)
(4.06)
(2.58)
(3.17)
TOTAL DISTRIBUTIONS
(2.10)
(4.63)
(4.37)
(2.86)
(3.49)
Net Asset Value, End of Period
$18.35
$20.69
$23.69
$27.75
$25.13
Total Return2
(1.41)%
8.63%
0.83%
23.19%
5.85%
Ratios to Average Net Assets:
 
 
 
 
 
Net expenses3
0.31%
0.31%
0.31%
0.31%
0.30%
Net investment income
1.22%
1.31%
1.28%
1.01%
1.40%
Expense waiver/reimbursement4
0.15%
0.12%
0.10%
0.12%
0.10%
Supplemental Data:
 
 
 
 
 
Net assets, end of period (000 omitted)
$87,376
$161,149
$154,139
$166,962
$161,135
Portfolio turnover
34%
31%
29%
35%
33%
1
Per share numbers have been calculated using the average shares method.
2
Based on net asset value.
3
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
4
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.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
20

Financial Highlights–Service Shares
(For a Share Outstanding Throughout Each Period)
Year Ended October 31
2020
2019
2018
2017
2016
Net Asset Value, Beginning of Period
$20.70
$23.71
$27.77
$25.15
$27.26
Income From Investment Operations:
 
 
 
 
 
Net investment income
0.17
0.21
0.26
0.20
0.281
Net realized and unrealized gain (loss)
(0.45)
1.36
(0.02)
5.21
1.04
TOTAL FROM INVESTMENT OPERATIONS
(0.28)
1.57
0.24
5.41
1.32
Less Distributions:
 
 
 
 
 
Distributions from net investment income
(0.17)
(0.22)
(0.24)
(0.21)
(0.26)
Distributions from net realized gain
(1.88)
(4.36)
(4.06)
(2.58)
(3.17)
TOTAL DISTRIBUTIONS
(2.05)
(4.58)
(4.30)
(2.79)
(3.43)
Net Asset Value, End of Period
$18.37
$20.70
$23.71
$27.77
$25.15
Total Return2
(1.63)%
8.32%
0.56%
22.86%
5.64%
Ratios to Average Net Assets:
 
 
 
 
 
Net expenses3
0.56%
0.56%
0.56%
0.56%
0.55%
Net investment income
0.95%
1.08%
1.03%
0.76%
1.16%
Expense waiver/reimbursement4
0.13%
0.11%
0.10%
0.09%
0.10%
Supplemental Data:
 
 
 
 
 
Net assets, end of period (000 omitted)
$251,645
$336,868
$434,678
$639,787
$660,471
Portfolio turnover
34%
31%
29%
35%
33%
1
Per share numbers have been calculated using the average shares method.
2
Based on net asset value.
3
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
4
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.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
21

Financial Highlights–Class R6 Shares
(For a Share Outstanding Throughout Each Period)
 
Year Ended October 31,
Period
Ended
10/31/20161
2020
2019
2018
2017
Net Asset Value, Beginning of Period
$20.71
$23.72
$27.78
$25.15
$25.29
Income From Investment Operations:
 
 
 
 
 
Net investment income
0.22
0.26
0.32
0.262
0.012
Net realized and unrealized gain (loss)
(0.45)
1.36
(0.01)
5.23
(0.15)
TOTAL FROM INVESTMENT OPERATIONS
(0.23)
1.62
0.31
5.49
(0.14)
Less Distributions:
 
 
 
 
 
Distributions from net investment income
(0.22)
(0.27)
(0.31)
(0.28)
Distributions from net realized gain
(1.88)
(4.36)
(4.06)
(2.58)
TOTAL DISTRIBUTIONS
(2.10)
(4.63)
(4.37)
(2.86)
Net Asset Value, End of Period
$18.38
$20.71
$23.72
$27.78
$25.15
Total Return3
(1.35)%
8.59%
0.83%
23.23%
(0.55)%
Ratios to Average Net Assets:
 
 
 
 
 
Net expenses4
0.30%
0.30%
0.30%
0.30%
0.26%5
Net investment income
1.21%
1.34%
1.26%
0.96%
0.52%5
Expense waiver/reimbursement6
0.11%
0.08%
0.07%
0.06%
—%
Supplemental Data:
 
 
 
 
 
Net assets, end of period (000 omitted)
$37,590
$53,991
$46,064
$29,384
$07
Portfolio turnover
34%
31%
29%
35%
33%8
1
Reflects operations for the period from October 18, 2016 (date of initial investment) to October 31, 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
Represents less than $1,000.
8
Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the fiscal year ended October 31, 2016.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
22

Statement of Assets and LiabilitiesOctober 31, 2020
Assets:
 
 
Investment in securities, at value including $1,022,847 of securities
loaned and $6,381,921 of investment in affiliated holdings*
(identified cost $251,249,094)
 
$377,757,288
Deposit from broker
 
364,500
Receivable for shares sold
 
185,099
Income receivable
 
176,607
Receivable for investments sold
 
43,369
Income receivable from affiliated holding
 
16,359
TOTAL ASSETS
 
378,543,222
Liabilities:
 
 
Payable for collateral due to broker for securities lending
$1,077,921
 
Payable for shares redeemed
554,484
 
Payable for investments purchased
55,079
 
Bank overdraft
10,485
 
Payable for portfolio accounting fees
68,314
 
Payable for other service fees (Notes 2 and 5)
58,416
 
Payable for variation margin on futures contracts
13,586
 
Payable for custodian fees
26,073
 
Payable for management fee (Note 5)
4,923
 
Accrued expenses (Note 5)
61,955
 
TOTAL LIABILITIES
 
1,931,236
Net assets for 20,503,904 shares outstanding
 
$376,611,986
Net Assets Consists of:
 
 
Paid-in capital
 
$197,550,082
Total distributable earnings
 
179,061,904
TOTAL NET ASSETS
 
$376,611,986
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
 
 
Institutional Shares:
 
 
Net asset value per share ($87,376,334 ÷ 4,761,170 shares outstanding)
no par value, unlimited shares authorized
 
$18.35
Service Shares:
 
 
Net asset value per share ($251,645,455 ÷ 13,697,458 shares
outstanding) no par value, unlimited shares authorized
 
$18.37
Class R6 Shares:
 
 
Net asset value per share ($37,590,197 ÷ 2,045,276 shares outstanding)
no par value, unlimited shares authorized
 
$18.38
*
See information listed after the Fund’s Portfolio of Investments.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
23

Statement of OperationsYear Ended October 31, 2020
Investment Income:
 
 
 
Dividends (including $139,847 received from affiliated
holdings* and net of foreign taxes withheld of $467)
 
 
$6,563,128
Net income on securities loaned (includes $87,350 earned
from affiliated holdings related to cash collateral balances*)
 
 
36,072
TOTAL INCOME
 
 
6,599,200
Expenses:
 
 
 
Management adviser fee (Note 5)
 
$1,305,597
 
Custodian fees
 
37,147
 
Transfer agent fees (Note 2)
 
235,852
 
Directors’/Trustees’ fees (Note 5)
 
5,911
 
Auditing fees
 
30,199
 
Legal fees
 
7,234
 
Other service fees (Notes 2 and 5)
 
677,462
 
Portfolio accounting fees
 
139,912
 
Share registration costs
 
60,177
 
Printing and postage
 
35,842
 
Miscellaneous (Notes 5)
 
98,125
 
TOTAL EXPENSES
 
2,633,458
 
Waiver, Reimbursements and Reduction:
 
 
 
Waiver/reimbursement of management adviser fee (Note 5)
$(465,177)
 
 
Reimbursement of other operating expenses (Notes 2 and 5)
(105,785)
 
 
Reduction of custodian fees (Note 6)
(503)
 
 
TOTAL WAIVER, REIMBURSEMENTS AND REDUCTION
 
(571,465)
 
Net expenses
 
 
2,061,993
Net investment income
 
 
$4,537,207
Annual Shareholder Report
24

Statement of Operations–continued
Realized and Unrealized Gain (Loss) on Investments,
Foreign Currency Transactions and Futures Contracts:
 
 
 
Net realized gain on investments and foreign currency
transactions (including realized gain of $73,443 on sales of
investments in affiliated holdings*) and foreign
currency transactions
 
 
$56,608,360
Net realized gain on futures contracts
 
 
3,750
Net change in unrealized appreciation of investments
(including net change in unrealized appreciation of
$(270,775) on investments in affiliated holdings*)
 
 
(72,719,828)
Net change in unrealized appreciation of futures contracts
 
 
(33,105)
Net realized and unrealized gain (loss) on investments,
foreign currency transactions and futures contracts
 
 
(16,140,823)
Change in net assets resulting from operations
 
 
$(11,603,616)
*
See information listed after the Fund’s Portfolio of Investments.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
25

Statement of Changes in Net Assets
Year Ended October 31
2020
2019
Increase (Decrease) in Net Assets
 
 
Operations:
 
 
Net investment income
$4,537,207
$6,702,429
Net realized gain
56,612,110
48,063,788
Net change in unrealized appreciation/depreciation
(72,752,933)
(10,435,402)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
(11,603,616)
44,330,815
Distributions to Shareholders:
 
 
Institutional Shares
(14,910,440)
(29,979,084)
Service Shares
(32,784,880)
(82,183,206)
Class R6 Shares
(5,026,616)
(8,858,500)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS
TO SHAREHOLDERS
(52,721,936)
(121,020,790)
Share Transactions:
 
 
Proceeds from sale of shares
65,446,293
141,403,976
Net asset value of shares issued to shareholders in payment of
distributions declared
51,192,413
117,944,341
Cost of shares redeemed
(227,708,829)
(265,532,051)
CHANGE IN NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
(111,070,123)
(6,183,734)
Change in net assets
(175,395,675)
(82,873,709)
Net Assets:
 
 
Beginning of period
552,007,661
634,881,370
End of period
$376,611,986
$552,007,661
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
26

Notes to Financial Statements
October 31, 2020
1. ORGANIZATION
Federated Hermes Index Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of two portfolios. The financial statements included herein are only those of Federated Hermes Mid-Cap Index Fund (the “Fund”), a diversified portfolio. The financial statements of the other portfolio are presented separately. The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers three classes of shares: Institutional Shares, Service Shares and Class R6 Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide investment results generally corresponding to the aggregate price and dividend performance of the publicly traded common stocks that comprise the mid-level stock capitalization sector of the U.S. equity market. This group of stocks is known as the S&P MidCap 400 Index.
Prior to June 29, 2020, the names of the Trust and Fund were Federated Index Trust and Federated Mid-Cap Index Fund, respectively.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
■ Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
■ Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Fund’s Board of Trustees (the “Trustees”).
■ Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs.
■ Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations.
■ Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.
■ For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.
Annual Shareholder Report
27

If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Fund’s valuation policies and procedures, or if information furnished by a pricing service, in the opinion of the valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.
Fair Valuation and Significant Events Procedures
The Trustees have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Trustees have appointed a Valuation Committee comprised of officers of the Fund, Federated Hermes Equity Management Company of Pennsylvania (the “Manager”) and certain of the Manager’s affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Manager based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Manager determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is
Annual Shareholder Report
28

computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
■ With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;
■ Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;
■ Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
The Trustees have adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Trustees. The Trustees have ultimate responsibility for any fair valuations made in response to a significant event.
Repurchase Agreements
The Fund may invest in repurchase agreements for short-term liquidity purposes. It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund’s custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a “securities entitlement” and exercises “control” as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.
The insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.
The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund’s Manager and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.
Annual Shareholder Report
29

Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid quarterly. Non-cash dividends included in dividend income, if any, are recorded at fair value. Amortization/accretion of premium and discount is included in investment income. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. The detail of the total fund expense waiver, reimbursements and reduction of $571,465 is disclosed in various locations in Note 2, Note 5 and Note 6.
 
Transfer Agent
Fees Incurred
Transfer Agent
Fees Reimbursed
Institutional Shares
$77,676
$(47,555)
Service Shares
151,215
(58,230)
Class R6 Shares
6,961
TOTAL
$235,852
$(105,785)
Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund’s Service Shares to unaffiliated financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees. For the year ended October 31, 2020, other service fees for the Fund were as follows:
 
Other Service
Fees Incurred
Service Shares
$677,462
Federal Taxes
It is the Fund’s policy to comply with the Subchapter M provision of the Internal Revenue Code and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the year ended October 31, 2020, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of October 31, 2020, tax years 2017 through 2020 remain subject to examination by the Fund’s major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.
Annual Shareholder Report
30

When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Futures Contracts
The Fund purchases stock index futures contracts to manage cash flows, enhance yield and to maintain exposure to the S&P MidCap 400 Index and to potentially reduce transaction costs. Upon entering into a financial futures contract with a broker, the Fund is required to deposit with a broker, either U.S. government securities or a specified amount of cash, which is shown as due from broker in the Statement of Assets and Liabilities. Futures contracts are valued daily and unrealized gains or losses are recorded in a “variation margin” account. The Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. There is minimal counterparty risk to the Fund since futures contracts are exchange traded and the exchange’s clearing house, as counterparty to all exchange traded futures contracts, guarantees the futures contracts against default.
Futures contracts outstanding at the period end are listed after the Fund’s Portfolio of Investments.
The average notional value of long futures contracts held by the Fund throughout the period was $12,522,053. This is based on amounts held as of each month-end throughout fiscal period.
Securities Lending
The Fund participates in a securities lending program providing for the lending of equity securities to qualified brokers. The term of the loans within the program is one year or less. The Fund normally receives cash collateral for securities loaned that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. Investments in money market funds may include funds with a “floating” NAV that can impose redemption fees and liquidity gates, impose certain operational impediments to investing cash collateral, and, if the investee fund’s NAV decreases, result in the Fund recognizing losses and being required to cover the decrease in the value of the cash collateral. Collateral is maintained at a minimum level of 100% of the market value of investments loaned, plus interest, if applicable. Earnings on collateral are allocated between the borrower of the security, the securities lending agent, as a fee for its services under the program and the Fund, according to agreed-upon rates. The Fund will not have the right to vote on securities while they are on loan. However, the Fund will attempt to terminate a loan in an effort to reacquire the securities in time to vote on matters that are deemed to be material by the Manager. There can be no assurance that the Fund will have sufficient notice of such matters to be able to terminate the loan in time to vote thereon.
Annual Shareholder Report
31

Securities lending transactions are subject to Master Netting Agreements which are agreements between the Fund and its counter parties that provide for the net settlement of all transactions and collateral with the Fund, through a single payment, in the event of default or termination. Amounts presented on the Portfolio of Investments and Statement of Assets and Liabilities are not net settlement amount but gross. As indicated below, the cash collateral received by the Fund exceeds the market value of the securities loaned reducing the net settlement amount to zero. The chart below identifies the amount of collateral received as well as the market value of securities on loan. Additionally, the securities lending agreement executed by the Fund includes an indemnification clause. This clause stipulates that the borrower will reimburse the Fund for any losses as a result of any failure of the borrower to return equivalent securities to the Fund.
As of October 31, 2020, securities subject to this type of arrangement and related collateral were as follows:
Market Value of
Securities Loaned
Collateral
Received
$1,022,847
$1,077,921
Additional Disclosure Related to Derivative Instruments
Fair Value of Derivative Instruments
 
 
Liability
 
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
$(17,912)*
*
Includes cumulative appreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.
The Effect of Derivative Instruments on the Statement of Operations for the Year Ended October 31, 2020
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
 
Futures
Contracts
Equity Contracts
$3,750
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
 
Futures
Contracts
Equity Contracts
$(33,105)
Annual Shareholder Report
32

Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could materially differ from those estimated. The Fund applies investment company accounting and reporting guidance.
3. SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
Year Ended October 31,
2020
2019
Institutional Shares:
Shares
Amount
Shares
Amount
Shares sold
1,210,184
$21,267,418
3,310,212
$65,960,528
Shares issued to shareholders in payment of
distributions declared
759,734
14,462,392
1,514,965
29,178,550
Shares redeemed
(4,998,532)
(91,016,876)
(3,541,891)
(70,125,078)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE TRANSACTIONS
(3,028,614)
$(55,287,066)
1,283,286
$25,014,000
Year Ended October 31,
2020
2019
Service Shares:
Shares
Amount
Shares
Amount
Shares sold
2,192,153
$37,888,157
2,687,419
$56,294,256
Shares issued to shareholders in payment of
distributions declared
1,666,166
31,823,950
4,150,255
79,945,272
Shares redeemed
(6,433,367)
(115,084,626)
(8,897,527)
(180,119,132)
NET CHANGE RESULTING FROM
SERVICE SHARE TRANSACTIONS
(2,575,048)
$(45,372,519)
(2,059,853)
$(43,879,604)
Year Ended October 31,
2020
2019
Class R6 Shares:
Shares
Amount
Shares
Amount
Shares sold
358,585
$6,290,718
977,895
$19,149,192
Shares issued to shareholders in payment of
distributions declared
257,662
4,906,071
457,225
8,820,519
Shares redeemed
(1,177,349)
(21,607,327)
(770,934)
(15,287,841)
NET CHANGE RESULTING FROM
CLASS R6 SHARE TRANSACTIONS
(561,102)
$(10,410,538)
664,186
$12,681,870
NET CHANGE RESULTING FROM
TOTAL FUND SHARE TRANSACTIONS
(6,164,764)
$(111,070,123)
(112,381)
$(6,183,734)
Annual Shareholder Report
33

4. FEDERAL TAX INFORMATION
The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended October 31, 2020 and 2019, was as follows:
 
2020
2019
Ordinary income1
$4,780,951
$12,788,563
Long Term Capital Gains
$47,940,985
$108,232,227
1
For tax purposes, short-term capital gain distributions are considered ordinary income distributions.
As of October 31, 2020, the components of distributable earnings on a tax-basis were as follows:
Undistributed ordinary income2
$228,030
Undistributed long-term capital gains
$57,884,689
Net unrealized appreciation
$120,949,185
2
For tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings.
The difference between book-basis and tax-basis net unrealized appreciation/depreciation is attributable to differing treatments for the deferral of losses on wash sales and marked-to-market on futures contracts.
At October 31, 2020, the cost of investments for federal tax purposes was $256,808,103. The net unrealized appreciation of investments for federal tax purposes was $120,949,185. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $139,332,806 and net unrealized depreciation from investments for those securities having an excess of cost over value of $18,383,621. The amounts presented are inclusive of derivative contracts.
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Management Fee
The management agreement between the Fund and the Manager provides for an annual fee equal to 0.30% of the Fund’s average daily net assets. Subject to the terms described in the Expense Limitation note, the Manager may voluntarily choose to waive any portion of its fee. For the year ended October 31, 2020, the Manager voluntarily waived $457,314 of its fee and reimbursed $105,785 of transfer agent fees.
The Manager has agreed to reimburse the Fund for certain investment adviser fees as a result of transactions in other affiliated investment companies. For the year ended October 31, 2020, the Manager reimbursed $7,863.
Annual Shareholder Report
34

Other Service Fees
For the year ended October 31, 2020, FSSC received $11,605 of the other service fees disclosed in Note 2.
Expense Limitation
The Manager and certain of its affiliates (which may include FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund’s Institutional Shares, Service Shares and Class R6 Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.31%, 0.56% and 0.30% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) January 1, 2022; or (b) the date of the Fund’s next effective Prospectus. While the Manager and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.
Interfund Transactions
During the year ended October 31, 2020, the Fund engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and amounted to $31,924 and $332,346 respectively. Net realized gain recognized on these transactions was $227,776.
Directors’/Trustees’ and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Independent Directors’/Trustees’ fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Manager which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
6. Expense Reduction
Through arrangements with the Fund’s custodian, net credits realized as a result of uninvested cash balances were used to reduce custody expenses. For the year ended October 31, 2020, the Fund’s expenses were reduced by $503 under these arrangements.
Annual Shareholder Report
35

7. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended October 31, 2020, were as follows:
Purchases
$144,023,645
Sales
$295,123,765
8. LINE OF CREDIT
The Fund participates with certain other Federated Hermes Funds, on a several basis, in an up to $500,000,000 unsecured, 364-day, committed, revolving line of credit (LOC) agreement dated June 24, 2020. The LOC was made available to temporarily finance the repurchase or redemption of shares of the Fund, failed trades, payment of dividends, settlement of trades and for other short-term, temporary or emergency general business purposes. The Fund cannot borrow under the LOC if an inter-fund loan is outstanding. The Fund’s ability to borrow under the LOC also is subject to the limitations of the Act and various conditions precedent that must be satisfied before the Fund can borrow. Loans under the LOC are charged interest at a fluctuating rate per annum equal to the highest, on any day, of (a) (i) the federal funds effective rate, (ii) the one month London Interbank Offered Rate (LIBOR), or a replacement rate as appropriate, and (iii) 0.0%, plus (b) a margin. Any fund eligible to borrow under the LOC pays its pro rata share of an upfront fee, and its pro rata share of a commitment fee based on the amount of the lenders’ commitment that has not been utilized, quarterly in arrears and at maturity. As of October 31, 2020, the Fund had no outstanding loans. During the year ended October 31, 2020, the Fund did not utilize the LOC.
9. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Hermes, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of October 31, 2020, there were no outstanding loans. During the year ended October 31, 2020, the program was not utilized.
10. OTHER MATTERS
An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread globally. As of the date of the issuance of these financial statements, this coronavirus has resulted in closing borders, enhanced health screenings, healthcare service preparation and delivery, quarantines, cancellations, and disruptions to supply chains, workflow operations and consumer activity, as well as general concern and uncertainty. The impact of this coronavirus may be short-term or may last for an extended period of time and has resulted in a substantial economic downturn. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic risks. The impact of this outbreak, and other epidemics and pandemics that may arise in the future, could continue to negatively affect the worldwide economy, as well as the economies of individual countries, individual companies, (including certain Fund service providers and issuers of the Fund’s investments) and the markets in general in significant and unforeseen ways. Any such impact could adversely affect the Fund’s performance.
Annual Shareholder Report
36

11. FEDERAL TAX INFORMATION (UNAUDITED)
For the fiscal year ended October 31, 2020, 100% of total ordinary income (including short-term capital gain) distributions made by the Fund are qualifying dividends which may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Act of 2003. Complete information is reported in conjunction with the reporting of your distributions on Form 1099-DIV.
Of the ordinary income (including short-term capital gain) distributions made by the Fund during the year ended October 31, 2020, 100% qualify for the dividend received deduction available to corporate shareholders.
For the year ended October 31, 2020, the amount of long-term capital gains designated by the Fund was $47,940,985.
Annual Shareholder Report
37

Report of Independent Registered Public Accounting Firm
TO THE BOARD OF Trustees OF Federated Hermes Index Trust AND SHAREHOLDERS OF Federated hermes Mid-Cap Index fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Federated Hermes Mid-Cap Index Fund (formerly, Federated Mid-Cap Index Fund (the “Fund”) (one of the portfolios constituting Federated Hermes Index Trust (formerly, Federated Index Trust) (the “Trust”)), including the portfolio of investments, as of October 31, 2020, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting Federated Hermes Index Trust) at October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Annual Shareholder Report
38

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Federated Hermes investment companies since 1979.
Boston, Massachusetts
December 23, 2020
Annual Shareholder Report
39

Shareholder Expense Example (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2020 to October 31, 2020.
ACTUAL EXPENSES
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Annual Shareholder Report
40

Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
 
Beginning
Account Value
5/1/2020
Ending
Account Value
10/31/2020
Expenses Paid
During Period1
Actual:
 
 
 
Institutional Shares
$ 1,000
$1,161.50
$1.68
Service Shares
$ 1,000
$1,159.80
$3.04
Class R6 Shares
$ 1,000
$1,161.30
$1.63
Hypothetical (assuming a 5% return
before expenses):
 
 
 
Institutional Shares
$ 1,000
$1,023.58
$1.58
Service Shares
$ 1,000
$1,022.32
$2.85
Class R6 Shares
$ 1,000
$1,023.63
$1.53
1
Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half-year period). The annualized net expense ratios are as follows:
Institutional Shares
0.31%
Service Shares
0.56%
Class R6 Shares
0.30%
Annual Shareholder Report
41

Board of Trustees and Trust Officers
The Board of Trustees is responsible for managing the Trust’s business affairs and for exercising all the Trust’s powers except those reserved for the shareholders. The following tables give information about each Trustee and the senior officers of the Fund. Where required, the tables separately list Trustees who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). Unless otherwise noted, the address of each person listed is 1001 Liberty Avenue, Pittsburgh, PA 15222. The address of all Independent Trustees listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2019, the Trust comprised two portfolio(s), and the Federated Hermes Fund Family consisted of 41 investment companies (comprising 135 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Trustee oversees all portfolios in the Federated Hermes Fund Family and serves for an indefinite term. The Fund’s Statement of Additional Information includes additional information about Trust Trustees and is available, without charge and upon request, by calling 1-800-341-7400.
Interested Trustees Background
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:
January 1990
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.
Annual Shareholder Report
42

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 2016
Principal Occupations: Principal Executive Officer and President of
certain of the Funds in the Federated Hermes Fund Family; Director or
Trustee of certain of the Funds in the Federated Hermes Fund Family;
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.
*
Reasons for “interested” status: J. Christopher Donahue and John B. Fisher are interested due to their beneficial ownership of shares of Federated Hermes, Inc. and due to positions they hold with Federated Hermes, Inc. and its subsidiaries.
INDEPENDENT Trustees Background
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:
October 2013
Principal Occupations: Director or Trustee of the Federated Hermes
Fund Family; formerly, Chairman and CEO, The Collins Group, Inc.
(a private equity firm) (Retired).
Other Directorships Held: Chairman of the Board of Directors,
Director, and Chairman of the Compensation Committee, 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).
Annual Shareholder Report
43

Name
Birth Date
Positions Held with Trust
Date Service Began
Principal Occupation(s) for Past Five Years,
Other Directorships Held, Previous Position(s) and Qualifications
G. Thomas Hough
Birth Date: February 28, 1955
Trustee
Indefinite Term
Began serving: August 2015
Principal Occupations: Director or Trustee, 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.; Director, Member of the Audit Committee, 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: August 2009
Principal Occupations: Director or Trustee of the Federated Hermes
Fund Family; Adjunct Professor 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; Director and Vice Chair, Our Campaign
for the Church Alive!, Inc.; 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; and Director
and Chair, North Catholic High School, Inc.
Annual Shareholder Report
44

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
Charles F. Mansfield, Jr.
Birth Date: April 10, 1945
Trustee
Indefinite Term
Began serving: January 1999
Principal Occupations: Director or Trustee of the Federated Hermes
Fund Family; Management Consultant and Author.
Other Directorships Held: None.
Qualifications: Mr. Mansfield has served as a Marine Corps officer and
in several banking, business management, educational roles and
directorship positions throughout his long career. He remains active as
a Management Consultant and Author.
Thomas M. O’Neill
Birth Date: June 14, 1951
Trustee
Indefinite Term
Began serving: August 2006
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 and
Director, The Golisano Children’s Museum of Naples, Florida.
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); 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; Senior Vice President for Legal Affairs, General Counsel
and Secretary of the Board of Trustees, Duquesne University.
Other Directorships Held: None.
Qualifications: Ms. Reilly has served in various business and legal
management roles throughout her career. Ms. Reilly previously served
as Director of Risk Management and Associate General Counsel,
Duquesne University. Prior to her work at Duquesne University,
Ms. Reilly served as Assistant General Counsel of Compliance and
Enterprise Risk as well as Senior Counsel of Environment, Health and
Safety, PPG Industries. Ms. Reilly also previously served as Chair of
the Risk Management Committee for Holy Ghost Preparatory School,
Philadelphia and Secretary and Chair of the Governance Committee,
Oakland Catholic High School Board of Trustees, Pittsburgh.
Annual Shareholder Report
45

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:
October 2013
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, CNX Resources
Corporation (formerly known as CONSOL Energy Inc.).
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, CNX Resources Corporation (formerly known
as CONSOL Energy Inc.); 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: January 1999
Principal Occupations: Director or Trustee, and Chair of the Board of
Directors or Trustees, 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).
Annual Shareholder Report
46

OFFICERS
Name
Birth Date
Address
Positions Held with Trust
Date Service Began
Principal Occupation(s) for Past Five Years
and Previous Position(s)
Lori A. Hensler
Birth Date: January 6, 1967
TREASURER
Officer since: April 2013
Principal Occupations: Principal Financial Officer and Treasurer of the
Federated Hermes Fund Family; Senior Vice President, Federated
Administrative Services; Financial and Operations Principal for
Federated Securities Corp.; and Assistant Treasurer, Federated
Investors Trust Company. Ms. Hensler has received the Certified
Public Accountant designation.
Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice
President and Assistant Treasurer, Federated Investors Management
Company; Treasurer, Federated Investors Trust Company; Assistant
Treasurer, Federated Administrative Services, Federated
Administrative Services, Inc., Federated Securities Corp., Edgewood
Services, Inc., Federated Advisory Services Company, Federated
Equity Management Company of Pennsylvania, Federated Global
Investment Management Corp., Federated Investment Counseling,
Federated Investment Management Company, Passport Research,
Ltd., and Federated MDTA, LLC; Financial and Operations Principal for
Federated Securities Corp., Edgewood Services, Inc. and Southpointe
Distribution Services, Inc.
Peter J. Germain
Birth Date:
September 3, 1959
CHIEF LEGAL OFFICER,
SECRETARY and EXECUTIVE
VICE PRESIDENT
Officer since: January 2005
Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary
and Executive Vice President of the Federated Hermes Fund Family.
He is General Counsel, Chief Legal Officer, Secretary and Executive
Vice President, Federated Hermes, Inc.; Trustee and Senior Vice
President, Federated Investors Management Company; Trustee and
President, Federated Administrative Services; Director and President,
Federated Administrative Services, Inc.; Director and Vice President,
Federated Securities Corp.; Director and Secretary, Federated Private
Asset Management, Inc.; Secretary, Federated Shareholder Services
Company; and Secretary, Retirement Plan Service Company of
America. Mr. Germain joined Federated Hermes, Inc. in 1984 and is a
member of the Pennsylvania Bar Association.
Previous Positions: Deputy General Counsel, Special Counsel,
Managing Director of Mutual Fund Services, Federated Hermes, Inc.;
Senior Vice President, Federated Services Company; and Senior
Corporate Counsel, Federated Hermes, Inc.
Stephen Van Meter
Birth Date: June 5, 1975
CHIEF COMPLIANCE
OFFICER AND SENIOR VICE
PRESIDENT
Officer since: July 2015
Principal Occupations: Senior Vice President and Chief Compliance
Officer of the Federated Hermes Fund Family; Vice President and
Chief Compliance Officer of Federated Hermes, Inc. and Chief
Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined
Federated Hermes, Inc. in October 2011. He holds FINRA licenses
under Series 3, 7, 24 and 66.
Previous Positions: Mr. Van Meter previously held the position of
Compliance Operating Officer, Federated Hermes, Inc. Prior to joining
Federated Hermes, Inc., Mr. Van Meter served at the United States
Securities and Exchange Commission in the positions of Senior
Counsel, Office of Chief Counsel, Division of Investment Management
and Senior Counsel, Division of Enforcement.
Annual Shareholder Report
47

Name
Birth Date
Address
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: November 2002
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 Shareholder Report
48

Evaluation and Approval of Advisory Contract–May 2020
Federated Mid-Cap Index Fund (the “Fund”)
(EFFECTIVE CLOSE OF BUSINESS ON JUNE 26, 2020, THE FUND’S NAME CHANGED TO FEDERATED HERMES MID-CAP INDEX FUND)
At its meetings in May 2020 (the “May Meetings”), the Fund’s Board of Trustees (the “Board”), including a majority of those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the investment advisory contract between the Fund and Federated Equity Management Company of Pennsylvania (the “Adviser”) (the “Contract”) for an additional one-year term. The Board’s determination to approve the continuation of the Contract reflects the exercise of its business judgment after considering all of the information and factors believed to be relevant and appropriate on whether to continue the existing arrangements. The information, factors and conclusions that formed the basis for the Board’s approval are summarized below.
Information Received and Review Process
At the request of the Independent Trustees, the Fund’s Chief Compliance Officer (the “CCO”) furnished to the Board in advance of its May Meetings an independent written evaluation presenting on the topics discussed below. The Board considered the CCO’s independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund’s management fee and in determining to approve the continuation of the Contract. The CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees. At the request of the Independent Trustees, the CCO Fee Evaluation Report followed the same general approach and covered the same topics as that of the report that had previously been delivered by the CCO in his capacity as “Senior Officer” prior to the elimination of the Senior Officer position in December 2017.
In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, in the months preceding the May Meetings, the Board requested and reviewed written responses and supporting materials prepared by the Adviser and its affiliates (collectively, “Federated Hermes”) in response to requests posed to Federated Hermes on behalf of the Independent Trustees encompassing a wide variety of topics. The Board also considered such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the Contract, which included detailed information about the Fund and Federated Hermes furnished to the Board at its meetings
Annual Shareholder Report
49

throughout the year and in between regularly scheduled meetings on particular matters as the need arose, as well as information specifically prepared in connection with the approval of the continuation of the Contract that was presented at the May Meetings.
The Board’s consideration of the Contract included review of materials and information covering the following matters, among others: the Adviser’s and sub-adviser’s investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund’s short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, and relative to the Fund’s particular investment program and a group of its peer funds and/or its benchmark, as appropriate) and comments on the reasons for the Fund’s performance; the Fund’s investment objectives; the Fund’s expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to a group of its peer funds), with due regard for contractual or voluntary expense limitations (if any); the use and allocation of brokerage commissions derived from trading the Fund’s portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial and other risks assumed by the Adviser in sponsoring and managing the Fund; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund’s relationship to the other funds advised by Federated Hermes (each, a “Federated Hermes Fund”), which include a comprehensive array of funds with different investment objectives, policies and strategies which are generally available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Hermes Funds and the Federated Hermes’ affiliates that service them (including communications from regulatory agencies), as well as Federated Hermes’ responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Hermes Funds and/or Federated Hermes may be responding to them. In addition, the Board received and considered information furnished by Federated Hermes on the impacts of the coronavirus (COVID-19) outbreak on Federated Hermes generally and the Fund in particular, including, among other information, the current and anticipated impacts on the management, operations and performance of the Fund. The Board noted that its evaluation process is evolutionary and that the criteria considered and the emphasis placed on relevant criteria may change in recognition of changing circumstances in the mutual fund marketplace.
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees in determining to approve the Contract. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser’s fiduciary duty with respect to its receipt of
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compensation from a fund: (1) the nature and quality of the services provided by an adviser to a fund and its shareholders (including the performance of the fund, its benchmark, and comparable funds); (2) an adviser’s cost of providing the services (including the profitability to an adviser of providing advisory services to a fund); (3) the extent to which an adviser may realize “economies of scale” as a fund grows larger and, if such economies of scale exist, whether they have been shared with a fund and its shareholders or the family of funds; (4) any “fall-out” financial benefits that accrue to an adviser because of its relationship with a fund (including research services received from brokers that execute fund trades and any fees paid to affiliates of an adviser for services rendered to a fund); (5) comparative fee and expense structures (including a comparison of fees paid to an adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the adviser for what might be viewed as like services); and (6) the extent of care, conscientiousness and independence with which the fund’s board members perform their duties and their expertise (including whether they are fully informed about all facts the board deems relevant to its consideration of an adviser’s services and fees). The Board noted that the Securities and Exchange Commission (“SEC”) disclosure requirements regarding the basis for a fund board’s approval of the fund’s investment advisory contracts generally align with the factors listed above. The Board was aware of these factors and was guided by them in its review of the Contract to the extent it considered them to be appropriate and relevant, as discussed further below.
The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated Hermes on matters relating to the Federated Hermes Funds. While individual members of the Board may have weighed certain factors differently, the Board’s determination to continue the Contract was based on a comprehensive consideration of all information provided to the Board throughout the year and specifically with respect to the continuation of the Contract. The Independent Trustees were assisted throughout the evaluation process by independent legal counsel. In connection with their deliberations at the May Meetings, the Independent Trustees met separately in executive session with their independent legal counsel and without management present to review the relevant materials and consider their responsibilities under applicable laws. In addition, senior management representatives of Federated Hermes also met with the Independent Trustees and their independent legal counsel to discuss the materials and presentations furnished to the Board at the May Meetings. The Board considered the approval of the Contract for the Fund as part of its consideration of agreements for funds across the Federated Hermes Funds family, but its approvals were made on a fund-by-fund basis.
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Nature, Extent and Quality of Services
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of the Adviser and its affiliates dedicated to the Fund. In this regard, the Board evaluated, among other things, the Adviser’s personnel, experience and track record, as well as the financial resources and overall reputation of Federated Hermes and its willingness to invest in personnel and infrastructure that benefit the Federated Hermes Funds. The Board noted the significant acquisition of Hermes Fund Managers Limited by Federated Hermes in 2018, which has deepened the organization’s investment management expertise and capabilities and expanded the investment process for all of the Federated Hermes Funds to incorporate environmental, social and governance (“ESG”) factors and issuer engagement on ESG matters.
In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and the Adviser’s ability and experience in attracting and retaining qualified personnel to service the Fund. The Board noted the compliance program of the Adviser and the compliance-related resources devoted by the Adviser and its affiliates in support of the Fund’s obligations pursuant to Rule 38a-1 under the Investment Company Act of 1940, including the Adviser’s commitment to respond to rulemaking and other regulatory initiatives of the SEC such as the liquidity risk management program rules. In addition, the Board considered the response by the Adviser to recent market conditions and considered the overall performance of the Adviser in this context. The Fund’s ability to deliver competitive performance when compared to its Performance Peer Group (as defined below) was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund’s investment program. The Adviser’s ability to execute this program was one of the Board’s considerations in reaching a conclusion that the nature, extent and quality of the Adviser’s investment management and related services warrant the continuation of the Contract.
Fund Investment Performance
In evaluating the Fund’s investment performance, the Board considered performance results in light of the Fund’s investment objective, strategies and risks, as disclosed in the Fund’s prospectus. The Board also considered the Fund’s performance in light of the overall recent market conditions. The Board considered detailed investment reports on the Fund’s performance over different time periods that were provided to the Board throughout the year and in connection with the May Meetings and evaluated the Adviser’s analysis of the Fund’s performance for these time periods. The Board also reviewed comparative information regarding the performance of other mutual funds in the category of peer funds selected by Morningstar, Inc. (the “Morningstar”), an independent fund ranking organization (the “Performance Peer Group”), noting the CCO’s view that comparisons to fund peer groups may be helpful,
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though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases there may be differences in the funds’ objectives or investment management techniques, or the costs to implement the funds, even within the same Performance Peer Group.
For the periods ended December 31, 2019, the Fund’s performance for the five-year period was above the median of the relevant Performance Peer Group, and the Fund’s performance fell below the median of the relevant Performance Peer Group for the one-year and three-year periods. The Board discussed the Fund’s performance with the Adviser and recognized the efforts being taken by the Adviser in the context of other factors considered relevant by the Board.
Following such evaluation, and full deliberations, the Board concluded that the performance of the Fund supported renewal of the Contract.
Fund Expenses
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board has found the use of such comparisons to be relevant to its deliberations. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund’s total expense ratio (i.e., gross and net advisory fees, administrative fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated Hermes from the category of peer funds selected by Morningstar (the “Expense Peer Group”). The Board received a description of the methodology used to select the Expense Peer Group from the overall Morningstar category. The Board also reviewed comparative information regarding the fees and expenses of the broader group of funds in the overall Morningstar category. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because such comparisons are believed to be more relevant. The Board considered that other mutual funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle, in fact, chosen and maintained by the Fund’s investors. The Board noted that the range of their fees and expenses, therefore, appears to be a relevant indicator of what consumers have found to be reasonable in the marketplace in which the Fund competes.
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The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund’s fee rates relative to its Expense Peer Group. In this regard, the Board noted that the contractual advisory fee rate was above the median of the relevant Expense Peer Group, but the Board noted the applicable waivers and reimbursements, and that the overall expense structure of the Fund remained competitive in the context of other factors considered by the Board.
For comparison, the Board received and considered information about the fees charged by Federated Hermes for providing advisory services to other types of clients with investment strategies similar to those of the Federated Hermes Funds, including non-mutual fund clients such as institutional separate accounts and third-party unaffiliated mutual funds for which the Adviser or its affiliates serve as sub-adviser. The Board noted the CCO’s conclusion that non-mutual fund clients are inherently different products due to the following differences, among others: (i) different types of targeted investors; (ii) different applicable laws and regulations; (iii) different legal structures; (iv) different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; (v) and the time spent by portfolio managers and their teams (among other personnel across various departments, including legal, compliance and risk management) in reviewing securities pricing, addressing different administrative responsibilities, and addressing different degrees of risk associated with management; and (vi) a variety of different costs. The Board also considered information regarding the differences in the nature of the services required for Federated Hermes to manage its proprietary mutual fund business versus managing a discrete pool of assets as a sub-adviser to another institution’s mutual fund, noting that Federated Hermes generally performs significant additional services and assumes substantially greater risks in managing the Fund and other Federated Hermes Funds than in its role as sub-adviser to an unaffiliated third-party mutual fund. The Board noted that the CCO did not consider the fees for providing advisory services to other types of clients to be determinative in judging the appropriateness of the Federated Hermes Funds’ advisory fees.
Following such evaluation, and full deliberations, the Board concluded that the fees and expenses of the Fund are reasonable and supported renewal of the Contract.
Profitability and Other Benefits
The Board also received financial information about Federated Hermes, including information regarding the compensation and ancillary (or “fall-out”) benefits Federated Hermes derived from its relationships with the Federated Hermes Funds. This information covered not only the fees under the Federated Hermes Funds’ investment advisory contracts, but also fees received by Federated Hermes’ affiliates for providing other services to the Federated Hermes Funds under separate contracts (e.g., for serving as the Federated
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Hermes Funds’ administrator and distributor). In this regard, the Board considered that certain of Federated Hermes’ affiliates provide distribution and shareholder services to the Federated Hermes Funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The Board also received and considered information detailing any indirect benefit Federated Hermes may derive from its receipt of research services from brokers who execute portfolio trades for the Federated Hermes Funds. In addition, the Board considered the fact that, in order for the Federated Hermes Funds to be competitive in the marketplace, the Adviser and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to Federated Hermes Fund shareholders and/or reported to the Board their intention to do so in the future. Moreover, the Board received and considered regular reports from Federated Hermes throughout the year as to the institution, adjustment or elimination of these voluntary waivers and/or reimbursements.
The Board received and considered information furnished by Federated Hermes, as requested by the CCO, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the CCO and described to the Board. The Board considered the CCO’s view that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable, because a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated Hermes Fund and may produce unintended consequences. The allocation information, including the CCO’s view that fund-by-fund estimations may be unreliable, was considered in the evaluation by the Board. In addition, the Board considered that, during the prior year, an independent consultant conducted a review of the allocation methodologies used by Federated Hermes in estimating profitability for purposes of reporting to the Board in connection with the continuation of the Contract. The Board noted the consultant’s view that, although there is no single best method to allocate expenses, the methodologies used by Federated Hermes are reasonable.
The Board also reviewed information compiled by Federated Hermes comparing its profitability information to other publicly held fund management companies, including information regarding profitability trends over time. The Board considered the CCO’s conclusion that, based on such profitability information, Federated Hermes’ profit margins did not appear to be excessive. The Board also considered the CCO’s view that Federated Hermes appeared financially sound, with the resources necessary to fulfill its obligations under its contracts with the Federated Hermes Funds.
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Economies of Scale
The Board received and considered information about the notion of possible realization of “economies of scale” as a fund grows larger, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. In this regard, the Board considered that the Adviser has made significant and long-term investments in areas that support all of the Federated Hermes Funds, such as personnel and processes for the portfolio management, trading operations, issuer engagement (including with respect to ESG matters), shareholder services, compliance, business continuity, internal audit and risk management functions, as well as systems technology (including technology relating to cybersecurity) and use of data. The Board noted that Federated Hermes’ investments in these areas are extensive and are designed to provide enhanced services to the Federated Hermes Funds and their shareholders. The Board considered that the benefits of these investments (as well as the benefits of any economies of scale, should they exist) are likely to be shared with the Federated Hermes Fund family as a whole. In addition, the Board considered that the Adviser and its affiliates have frequently waived fees and/or reimbursed expenses for the Federated Hermes Funds and that such waivers and reimbursements are another means for potential economies of scale to be shared with shareholders and can provide protection from an increase in expenses if a Federated Hermes Fund’s assets decline. Federated Hermes, as it does throughout the year, and specifically in connection with the Board’s review of the Contract, furnished information relative to adviser-paid fees (commonly referred to as revenue sharing). The Board considered the beliefs of Federated Hermes and the CCO that this information should be viewed to determine if there was an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, and should not be viewed to determine the appropriateness of advisory fees. The Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as a fund attains a certain size.
Conclusions
The Board considered the CCO’s conclusion that his observations and the information accompanying the CCO Fee Evaluation Report show that the management fee for the Fund was reasonable and the CCO’s recommendation that the Board approve the management fee. The Board noted that, under these circumstances, no changes were recommended to, and no objection was raised to the continuation of, the Contract by the CCO. The CCO also recognized that the Board’s evaluation of the Federated Hermes Funds’ advisory and subadvisory arrangements is a continuing and on-going process that is informed by the information that the Board requests and receives from
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management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its on-going oversight of the Federated Hermes Funds.
In its determination to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an investment advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser’s industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board’s approval of the Contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors summarized above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the Contract was appropriate.
The Board based its determination to approve the Contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily deemed to be relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were deemed to be relevant, the Board’s determination to approve the continuation of the Contract reflects its view that Federated Hermes’ performance and actions provided a satisfactory basis to support the determination to continue the existing arrangement.
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Liquidity Risk Management ProgramAnnual Evaluation of Adequacy and Effectiveness
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Federated Hermes Index Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) for Federated Hermes Mid-Cap Index Fund (the “Fund” and, collectively with the Federated Hermes funds, the “Federated Hermes Funds”). The Program seeks to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Board of Trustees of the Trust (the “Board”) has approved the designation of the Fund’s investment adviser as the administrator for the Program for the Fund. Each affiliated Federated Hermes advisory subsidiary (including the Fund’s investment adviser) that serves as investment adviser to a Federated Hermes Fund (including the Fund) has been approved as the administrator of the Program for each Federated Hermes Fund they manage (each an “Administrator”). The Administrator in turn has delegated daily responsibility for the administration of the Program to multiple Liquidity Risk Management Committees (the “Committees”). The Committees, which are comprised of representatives of Enterprise Risk Management, Compliance, Investment Management and Trading, must review and assess certain information related to the liquidity of the Federated Hermes Funds, including the Fund.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent a Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if a Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s highly liquid investments below its HLIM; and (6) periodic reporting to the Board.
At its meetings in May 2020, the Board received and reviewed a written report (the “Report”) from the Federated Hermes Funds’ Chief Compliance Officer and Chief Risk Officer, on behalf of the Administrator, concerning the operation of the Program for the period from the Program’s inception on December 1, 2018 through March 31, 2020 (the “Period”). The Report
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addressed the operation of the Program and assessed its adequacy and effectiveness, including, where applicable, the operation of any HLIM established for a Federated Hermes Fund and each Federated Hermes Fund’s access to other available funding sources such as the Federated Hermes Funds’ interfund lending facility, redemptions in-kind and committed lines of credit. There were no material changes to the Program during the Period. The Report summarized the operation of the Program and the information and factors considered by the Administrator in assessing whether the Program has been adequately and effectively implemented with respect to the Federated Hermes Funds. Such information and factors included, among other things:
■ confirmation that the Fund did not utilize alternative funding sources during the Period;
■ the periodic classifications of the Fund’s investments into one of four liquidity categories and the methodologies and inputs used to classify the investments, including the Fund’s reasonably anticipated trade size;
■ the analysis received from a third-party liquidity assessment vendor that is taken into account in the process of determining the liquidity classifications of the Fund’s investments and the results of an evaluation of the services performed by the vendor in support of this process;
■ the fact that the Fund invested primarily in highly liquid investments during the Period and, therefore, was not required to establish, and has not established, an HLIM and the procedures for monitoring the status of the Fund as investing primarily in highly liquid investments;
■ the fact that the Fund invested no more than 15% of its assets in illiquid investments during the Period and the procedures for monitoring this limit; and
■ liquidity events during the Period, including the impact on liquidity caused by extended non-U.S. market closures and the market disruptions resulting from the novel coronavirus outbreak, and the fact that there were no specific liquidity events during the Period that materially affected the Fund’s liquidity risk.
Based on this review, the Fund’s investment adviser, in its role as Administrator, collectively with the other investment advisers to the Federated Hermes Funds, concluded that the Program is operating effectively to assess and manage the Fund’s liquidity risk, and that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
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Voting Proxies on Fund Portfolio Securities
A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund’s portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at FederatedInvestors.com/FundInformation. Form N-PX filings are also available at the SEC’s website at sec.gov.
Quarterly Portfolio Schedule
Each fiscal quarter, the Fund will file with the SEC a complete schedule of its monthly portfolio holdings on “Form N-PORT.” The Fund’s holdings as of the end of the third month of every fiscal quarter, as reported on Form N-PORT, will be publicly available on the SEC’s website at sec.gov within 60 days of the end of the fiscal quarter upon filing. You may also access this information via the link to the Fund and share class name at FederatedInvestors.com.
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Mutual funds are not bank deposits or obligations, are not guaranteed by any bank and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.
This Report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund’s Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.   
Federated Hermes Mid-Cap Index Fund
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedInvestors.com
or call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 31420E882
CUSIP 31420E205
CUSIP 31420E874
29455 (12/20)
© 2020 Federated Hermes, Inc.

 

Annual Shareholder Report
October 31, 2020
Share Class | Ticker
C | MXCCX
R | FMXKX
Institutional | FISPX
Service | FMXSX

Federated Hermes Max-Cap Index Fund
(formerly, Federated Max-Cap Index Fund)
Fund Established 1990

A Portfolio of Federated Hermes Index Trust
(formerly, Federated Index Trust)
IMPORTANT NOTICE REGARDING REPORT DELIVERY
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4. Your election to receive reports in paper will apply to all funds held with the Fund complex or your financial intermediary.

Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee

J. Christopher
Donahue
President
Federated Hermes Max-Cap Index Fund
Letter from the President
Dear Valued Shareholder,
I am pleased to present the Annual Shareholder Report for your fund covering the period from November 1, 2019 through October 31, 2020.
As we all confront the unprecedented effects of the coronavirus and the challenges it presents to our families, communities, businesses and the financial markets, I want you to know that everyone at Federated Hermes is dedicated to helping you successfully navigate the markets ahead. You can count on us for the insights, investment management knowledge and client service that you have come to expect. Please refer to our website, FederatedInvestors.com, for timely updates on this and other economic and market matters.
Thank you for investing with us. I hope you find this information useful and look forward to keeping you informed.
Sincerely,
J. Christopher Donahue, President
   

Management’s Discussion of Fund Performance (unaudited)
The total return of Federated Hermes Max-Cap Index Fund (the “Fund”), based on net asset value for the 12-month reporting period ended October 31, 2020, was 8.04% for Class C Shares, 8.39% for Class R Shares, 9.16% for Institutional Shares and 8.87% for Service Shares. The total return of the Standard & Poor’s 500® Index (S&P 500),1 the Fund’s broad-based securities market index, was 9.71% for the same period. The Fund’s total return for the most recently completed fiscal year reflected actual cash flows, transaction costs and other expenses which were not reflected in the total return of the S&P 500.
The Fund normally invests its assets primarily in the common stocks included in the S&P 500. Under normal circumstances, Fund management will also use enhanced strategies (discussed further below) in an attempt to improve the performance of the portfolio relative to the S&P 500 to compensate for Fund expenses and tracking error (difference in the Fund’s performance relative to the performance of the S&P 500). During the reporting period, the Fund’s investment strategy focused on the use of enhanced strategies, which was the most significant factor affecting the Fund’s performance relative to the S&P 500.
The following discussion will focus on the performance of the Fund’s Institutional Shares relative to the S&P 500.
MARKET OVERVIEW
During the reporting period, the domestic equity market had positive performance as evidenced by the 8.56% return of the S&P Composite 1500® Index.2 The largest stocks in the S&P Composite 1500® Index, as represented by the S&P 100® Index,3 led the market with a 13.87% return for the reporting period. Large-cap stocks followed with the S&P 500 returning 9.71% for the same period. Mid-cap stock performance trailed its larger peers as the S&P Mid-Cap 400® Index4 returned -1.15%. Small-cap stocks in the S&P Composite 1500® Index as represented by the S&P SmallCap 600® Index5 had the worst performance of the market cap segments returning -7.72% for the reporting period. Growth stocks outperformed value stocks as the S&P Composite 1500® Growth Index6 returned 22.83% versus the -7.59% return of the S&P Composite 1500® Value Index.7
Within the S&P 500, sector8 performance was mixed during the reporting period. Information Technology, Consumer Discretionary, Communication Services, Materials, Health Care, Consumer Staples and Utilities all had positive performance for the reporting period while Industrials, Real Estate,
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Financials and Energy had negative performance. Information Technology led the way, advancing 34.48%, followed by Consumer Discretionary (24.69%) and Communication Services (15.81%). The Energy sector posted the weakest results (-46.44%), followed by Financials (-14.65%) and Real Estate (-10.27%).
Apple Inc. (Information Technology), Amazon.com, Inc. (Consumer Discretionary) and Microsoft Corporation (Information Technology) posted the strongest contribution to performance in the S&P 500, while Exxon Mobil Corporation (Energy), Wells Fargo & Company (Banks) and Boeing Company (Industrials) detracted the most from the performance of the S&P 500 for the reporting period.
Enhanced Strategies
Portfolio management of the enhanced strategies of the Fund consisted of overweighting and underweighting stocks relative to the S&P 500 based upon Fund management’s quantitative analysis of the securities. During the reporting period, the Fund underperformed the S&P 500 by 0.55% on a net basis and underperformed the S&P 500 by 0.15% on a gross basis. This underperformance on a gross basis was primarily due to the underperformance of the quantitative strategy. The Fund invested in a stock-based strategy that also utilized S&P 500 futures9 to provide equity exposure on the Fund’s cash balances. The trading of futures contracts had a positive effect on the Fund’s performance.
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1
Please see the footnotes to the line graphs below for definitions of, and further information about, the S&P 500.
2
The S&P Composite 1500® Index combines three leading indices, the S&P 500® Index, the S&P MidCap 400® Index and the S&P SmallCap 600® Index to cover approximately 90% of the U.S. market capitalization.*
3
The S&P 100® Index, a sub-set of the S&P 500® Index, measures the performance of large-cap companies in the United States. The Index comprises 100 major, blue chip companies across multiple industry groups. Individual stock options are listed for each index constituent.*
4
The S&P MidCap 400® Index is an unmanaged capitalization weighted index of common stocks representing all major industries in the mid-range of the U.S. stock market.*
5
The S&P SmallCap 600® Index measures the small-cap segment of the U.S. equity market. The index is designed to be an investable portfolio of companies that meet specific inclusion criteria to ensure that they are liquid and financially viable.*
6
The S&P Composite 1500® Growth Index measures growth stocks using three factors: sales growth, the ratio of earnings change to price and momentum. S&P Style Indices divide the complete market capitalization of each parent index into growth and value segments. Constituents are drawn from the S&P 1500® Index which combines the S&P 500® Index, S&P MidCap 400® Index and the S&P SmallCap 600® Index.*
7
The S&P Composite 1500® Value Index measures value stocks using three factors: the ratios of book value, earnings and sales to price. S&P Style Indices divide the complete market capitalization of each parent index into growth and value segments. Constituents are drawn from the S&P 1500® Index, which combines the S&P 500 ® Index, S&P MidCap 400 ® Index and the S&P SmallCap 600® Index.*
8
Sector classifications are based upon the classification of the Standard & Poor’s Global Industry Classification Standard.
9
The Fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments.
*
The index is unmanaged, and it is not possible to invest directly in an index.
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FUND PERFORMANCE AND GROWTH OF A $10,000 INVESTMENT
The graph below illustrates the hypothetical investment of $10,0001 in the Federated Hermes Max-Cap Index Fund from October 31, 2010 to October 31, 2020, compared to the Standard & Poor’s 500® Index (S&P 500).2 The Average Annual Total Return table below shows returns for each class averaged over the stated periods.
Growth of a $10,000 Investment
Growth of $10,000 as of October 31, 2020
■ Total returns shown for Class C Shares include the maximum contingent deferred sales charge of 1.00%, as applicable. 
The Fund offers multiple share classes whose performance may be greater than or less than its other share class(es) due to differences in sales charges and expenses. See the Average Annual Total Return table below for the returns of additional classes not shown in the line graph above.
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Average Annual Total Returns for the Period Ended 10/31/2020
(returns reflect all applicable sales charges and contingent deferred sales charges as specified below in footnote #1)
 
1 Year
5 Years
10 Years
Class C Shares
7.11%
10.23%
11.57%
Class R Shares
8.39%
10.59%
11.93%
Institutional Shares
9.16%
11.39%
12.75%
Service Shares
8.87%
11.06%
12.41%
S&P 500
9.71%
11.71%
13.01%
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month-end performance and after-tax returns, visit FederatedInvestors.com or call 1-800-341-7400. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured.
1
Represents a hypothetical investment of $10,000 in the Fund after deducting applicable sales charges: for Class C Shares, a 1.00% contingent deferred sales charge would be applied to any redemption less than one year from the purchase date. The Fund’s performance assumes the reinvestment of all dividends and distributions. The S&P 500 has been adjusted to reflect reinvestment of dividends on securities in the index.
2
The S&P 500 is an unmanaged capitalization weighted index of 500 stocks designated to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The S&P 500 is not adjusted to reflect taxes, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund’s performance. The S&P 500 is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.
Annual Shareholder Report
5

Portfolio of Investments Summary Table (unaudited)
At October 31, 2020 the Fund’s sector composition1 for its equity securities investments was as follows:
Sector
Percentage of
Total Net Assets
Information Technology
27.0%
Health Care
13.8%
Consumer Discretionary
11.4%
Communication Services
10.9%
Financials
9.7%
Industrials
8.3%
Consumer Staples
6.9%
Utilities
3.2%
Real Estate
2.6%
Materials
2.6%
Energy
2.0%
Derivative Contracts2,3
0.0%
Cash Equivalents4
1.6%
Other Assets and Liabilities—Net3,5
(0.0)%
TOTAL6
100%
1
Except for Derivative Contracts, 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 Manager assigns a classification to securities not classified by the GICS and to securities for which the Manager does not have access to the classification made by the GICS.
2
Based upon net unrealized appreciation (depreciation) or value of the derivative contracts, as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund’s performance may be larger than its unrealized appreciation (depreciation) may indicate. In many cases, the notional value or notional principal amount of a derivative contract may provide a better indication of the contract’s significance to the portfolio. More complete information regarding the Fund’s direct investments in derivative contracts, including unrealized appreciation (depreciation) 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.
3
Represents less than 0.1%.
4
Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements.
5
Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities.
6
The Fund purchases index futures contracts to efficiently manage cash flows resulting from shareholder purchases and redemptions, dividend and capital gain payments to shareholders and corporate actions while maintaining exposure to the Standard & Poor’s 500 Composite Stock Price (S&P 500) Index and minimizing trading costs. Taking into consideration these open index futures contracts, the Fund’s effective total exposure to the S&P 500 Index is 100.2%.
Annual Shareholder Report
6

Portfolio of Investments
October 31, 2020
Shares
 
 
Value
 
1
COMMON STOCKS—98.4%
 
 
 
Communication Services—10.9%
 
6,903
 
Activision Blizzard, Inc.
$522,764
2,861
2
Alphabet, Inc., Class A
4,623,691
2,795
2
Alphabet, Inc., Class C
4,530,723
67,680
 
AT&T, Inc.
1,828,714
8,870
 
CenturyLink, Inc.
76,459
1,360
2
Charter Communications, Inc.
821,195
43,300
 
Comcast Corp., Class A
1,828,992
2,041
2
Discovery, Inc., Class A
41,310
3,252
2
Discovery, Inc., Class C
59,577
2,482
2
DISH Network Corp., Class A
63,266
2,542
2
Electronic Arts, Inc.
304,608
23,047
2
Facebook, Inc.
6,063,896
944
 
Fox Corp
25,035
5,081
 
Interpublic Group of Cos., Inc.
91,915
3,856
2
Netflix, Inc.
1,834,454
2,789
 
News Corp., Inc., Class A
36,620
281
 
News Corp., Inc., Class B
3,659
2,500
 
Omnicom Group, Inc.
118,000
5,220
2
T-Mobile USA, Inc.
571,955
1,086
2
Take-Two Interactive Software, Inc.
168,243
7,951
2
Twitter, Inc.
328,853
39,216
 
Verizon Communications, Inc.
2,234,920
976
 
ViacomCBS Inc., Class B
27,884
17,137
 
Walt Disney Co.
2,077,861
 
 
TOTAL
28,284,594
 
 
Consumer Discretionary—11.4%
 
3,982
2
Amazon.com, Inc.
12,089,949
2,364
 
Aptiv PLC
228,102
197
2
AutoZone, Inc.
222,409
3,393
 
Best Buy Co., Inc.
378,489
311
2
Booking Holdings, Inc.
504,597
1,284
 
BorgWarner, Inc.
44,914
1,275
2
CarMax, Inc.
110,211
6,459
 
Carnival Corp.
88,553
241
2
Chipotle Mexican Grill, Inc.
289,557
2,746
 
D. R. Horton, Inc.
183,460
Annual Shareholder Report
7

Shares
 
 
Value
 
1
COMMON STOCKS—cont.
 
 
 
Consumer Discretionary—cont.
 
1,504
 
Darden Restaurants, Inc.
$138,248
2,210
 
Dollar General Corp.
461,249
2,424
2
Dollar Tree, Inc.
218,936
699
 
Domino’s Pizza, Inc.
264,446
6,768
 
eBay, Inc.
322,360
937
2
Etsy, Inc.
113,930
33,043
 
Ford Motor Co.
255,422
2,508
 
Gap (The), Inc.
48,781
1,133
 
Garmin Ltd.
117,855
10,988
 
General Motors Co.
379,416
1,096
 
Genuine Parts Co.
99,111
4,315
 
Hanesbrands, Inc.
69,342
2,491
 
Hilton Worldwide Holdings, Inc.
218,735
10,555
 
Home Depot, Inc.
2,815,124
6,488
 
L Brands, Inc.
207,681
3,610
 
Las Vegas Sands Corp.
173,497
668
 
Leggett and Platt, Inc.
27,876
4,242
 
Lennar Corp., Class A
297,916
1,799
2
LKQ Corp.
57,550
6,924
 
Lowe’s Cos., Inc.
1,094,684
2,742
 
Marriott International, Inc., Class A
254,677
6,857
 
McDonald’s Corp.
1,460,541
1,822
2
Mohawk Industries, Inc.
188,012
10,819
 
Newell Brands, Inc.
191,064
11,713
 
Nike, Inc., Class B
1,406,497
27
2
NVR, Inc.
106,733
668
2
O’Reilly Automotive, Inc.
291,649
376
 
Pool Corp.
131,536
1,940
 
Pulte Group, Inc.
79,074
832
 
PVH Corp.
48,497
1,948
 
Ross Stores, Inc.
165,911
2,049
 
Royal Caribbean Cruises, Ltd.
115,605
11,137
 
Starbucks Corp.
968,473
4,070
 
Tapestry, Inc.
90,476
5,575
 
Target Corp.
848,626
804
 
Tiffany & Co.
105,195
11,705
 
TJX Cos., Inc.
594,614
901
 
Tractor Supply Co.
120,022
Annual Shareholder Report
8

Shares
 
 
Value
 
1
COMMON STOCKS—cont.
 
 
 
Consumer Discretionary—cont.
 
597
2
Ulta Beauty, Inc.
$123,442
2,857
2
Under Armour, Inc., Class A
39,541
3,072
2
Under Armour, Inc., Class C
37,571
1,247
 
V.F. Corp.
83,798
436
 
Whirlpool Corp.
80,643
1,238
 
Wynn Resorts Ltd.
89,668
2,929
 
Yum! Brands, Inc.
273,364
 
 
TOTAL
29,417,629
 
 
Consumer Staples—6.9%
 
20,608
 
Altria Group, Inc.
743,537
2,479
 
Archer-Daniels-Midland Co.
114,629
25
 
Brown-Forman Corp., Class B
1,743
1,325
 
Campbell Soup Co.
61,838
2,268
 
Church and Dwight, Inc.
200,469
1,057
 
Clorox Co.
219,063
8,377
 
Colgate-Palmolive Co.
660,862
8,325
 
Conagra Brands, Inc.
292,124
1,710
 
Constellation Brands, Inc., Class A
282,543
4,061
 
Costco Wholesale Corp.
1,452,295
2,235
 
Estee Lauder Cos., Inc., Class A
490,940
5,273
 
General Mills, Inc.
311,740
1,526
 
Hershey Foods Corp.
209,764
2,104
 
Hormel Foods Corp.
102,444
1,968
 
Kellogg Co.
123,768
3,375
 
Kimberly-Clark Corp.
447,491
10,328
 
Kraft Heinz Co./The
315,934
6,490
 
Kroger Co.
209,043
1,630
 
Lamb Weston Holdings, Inc.
103,423
1,026
 
McCormick & Co., Inc.
185,203
5,481
 
Molson Coors Beverage Company, Class B
193,260
12,932
 
Mondelez International, Inc.
686,948
1,845
2
Monster Beverage Corp.
141,272
13,174
 
PepsiCo, Inc.
1,755,962
14,268
 
Philip Morris International, Inc.
1,013,313
23,524
 
Procter & Gamble Co.
3,225,140
832
 
Smucker (J.M.) Co.
93,350
5,091
 
Sysco Corp.
281,583
33,655
 
The Coca-Cola Co.
1,617,459
Annual Shareholder Report
9

Shares
 
 
Value
 
1
COMMON STOCKS—cont.
 
 
 
Consumer Staples—cont.
 
3,152
 
Tyson Foods, Inc., Class A
$180,389
6,824
 
Walgreens Boots Alliance, Inc.
232,289
12,824
 
WalMart Inc.
1,779,330
 
 
TOTAL
17,729,148
 
 
Energy—2.0%
 
14,034
 
Apache Corp.
116,482
4,749
 
Baker Hughes a GE Co. LLC
70,143
2,691
 
Cabot Oil & Gas Corp., Class A
47,873
18,544
 
Chevron Corp.
1,288,808
4,518
 
Concho Resources, Inc.
187,542
10,775
 
ConocoPhillips
308,380
3,995
 
Devon Energy Corp.
35,675
5,337
 
Diamondback Energy, Inc.
138,549
5,173
 
EOG Resources, Inc.
177,124
36,181
 
Exxon Mobil Corp.
1,180,224
7,581
 
Halliburton Co.
91,427
2,972
 
Hess Corp.
110,618
1,785
 
HollyFrontier Corp.
33,040
17,538
 
Kinder Morgan, Inc.
208,702
9,792
 
Marathon Oil Corp.
38,776
5,465
 
Marathon Petroleum Corp.
161,217
14,640
 
National Oilwell Varco, Inc.
122,976
1,933
 
Phillips 66
90,194
1,271
 
Pioneer Natural Resources, Inc.
101,121
14,157
 
Schlumberger Ltd.
211,506
3,967
 
TechnipFMC PLC
21,937
3,895
 
Valero Energy Corp.
150,386
11,263
 
Williams Cos., Inc.
216,137
 
 
TOTAL
5,108,837
 
 
Financials—9.7%
 
6,907
 
Aflac, Inc.
234,493
4,332
 
Allstate Corp.
384,465
6,362
 
American Express Co.
580,469
8,357
 
American International Group, Inc.
263,162
1,958
 
Ameriprise Financial, Inc.
314,905
2,300
 
Aon PLC
423,223
604
 
Assurant, Inc.
75,119
71,379
 
Bank of America Corp.
1,691,682
Annual Shareholder Report
10

Shares
 
 
Value
 
1
COMMON STOCKS—cont.
 
 
 
Financials—cont.
 
11,305
 
Bank of New York Mellon Corp.
$388,440
17,981
2
Berkshire Hathaway, Inc., Class B
3,630,364
1,282
 
BlackRock, Inc.
768,187
2,565
 
Capital One Financial Corp.
187,450
1,312
 
Cboe Global Markets, Inc.
106,652
13,190
 
Charles Schwab Corp.
542,241
4,453
 
Chubb Ltd.
578,489
1,739
 
Cincinnati Financial Corp.
123,017
22,376
 
Citigroup, Inc.
926,814
3,581
 
Citizens Financial Group, Inc.
97,582
2,598
 
CME Group, Inc.
391,571
1,943
 
Comerica, Inc.
88,426
683
 
Discover Financial Services
44,402
502
 
Everest Re Group Ltd.
98,934
714
 
Fifth Third Bancorp
16,579
1,372
 
First Republic Bank
173,064
3,749
 
Franklin Resources, Inc.
70,294
538
 
Gallagher (Arthur J.) & Co.
55,796
736
 
Globe Life, Inc.
59,682
3,117
 
Goldman Sachs Group, Inc.
589,238
12,198
 
Huntington Bancshares, Inc.
127,347
5,178
 
Intercontinental Exchange, Inc.
488,803
3,696
 
Invesco Ltd.
48,455
28,829
 
JPMorgan Chase & Co.
2,826,395
11,205
 
KeyCorp
145,441
5,598
 
Lincoln National Corp.
196,490
1,529
 
Loews Corp.
53,026
2,476
 
M & T Bank Corp.
256,464
337
 
Marketaxess Holdings, Inc.
181,592
3,642
 
Marsh & McLennan Cos., Inc.
376,801
6,569
 
MetLife, Inc.
248,637
1,421
 
Moody’s Corp.
373,581
12,351
 
Morgan Stanley
594,701
708
 
MSCI, Inc., Class A
247,687
868
 
NASDAQ, Inc.
105,019
2,265
 
Northern Trust Corp.
177,282
6,437
 
People’s United Financial, Inc.
68,683
4,072
 
PNC Financial Services Group
455,575
Annual Shareholder Report
11

Shares
 
 
Value
 
1
COMMON STOCKS—cont.
 
 
 
Financials—cont.
 
5,550
 
Principal Financial Group, Inc.
$217,671
5,291
 
Progressive Corp., OH
486,243
3,322
 
Prudential Financial, Inc.
212,674
1,030
 
Raymond James Financial, Inc.
78,733
9,949
 
Regions Financial Corp.
132,322
2,185
 
S&P Global, Inc.
705,165
5,394
 
State Street Corp.
317,707
431
2
SVB Financial Group
125,292
9,805
 
Synchrony Financial
245,321
1,923
 
T. Rowe Price Group, Inc.
243,567
4,050
 
The Hartford Financial Services Group, Inc.
156,006
2,605
 
The Travelers Cos., Inc.
314,449
9,311
 
Truist Financial Corp.
392,179
13,536
 
U.S. Bancorp
527,227
8,913
 
Unum Group
157,404
33,424
 
Wells Fargo & Co.
716,945
574
 
Willis Towers Watson PLC
104,743
5,673
 
Zions Bancorporation, N.A.
183,068
 
 
TOTAL
25,193,435
 
 
Health Care—13.8%
 
16,716
 
Abbott Laboratories
1,757,019
17,995
 
AbbVie, Inc.
1,531,374
350
2
Abiomed, Inc.
88,158
1,581
 
Agilent Technologies, Inc.
161,404
2,143
2
Alexion Pharmaceuticals, Inc.
246,745
630
2
Align Technology, Inc.
268,430
1,133
 
AmerisourceBergen Corp.
108,847
5,588
 
Amgen, Inc.
1,212,261
2,399
 
Anthem, Inc.
654,447
5,062
 
Baxter International, Inc.
392,659
2,831
 
Becton Dickinson & Co.
654,329
1,483
2
Biogen, Inc.
373,820
10,123
2
Boston Scientific Corp.
346,915
23,320
 
Bristol-Myers Squibb Co.
1,363,054
2,652
 
Cardinal Health, Inc.
121,435
1,229
2
Catalent, Inc.
107,869
5,074
2
Centene Corp.
299,873
2,541
 
Cerner Corp.
178,099
Annual Shareholder Report
12

Shares
 
 
Value
 
1
COMMON STOCKS—cont.
 
 
 
Health Care—cont.
 
4,213
 
CIGNA Corp.
$703,445
86
 
Cooper Cos., Inc.
27,438
14,498
 
CVS Health Corp.
813,193
5,792
 
Danaher Corp.
1,329,496
2,201
2
Davita, Inc.
189,836
2,594
 
Dentsply Sirona, Inc.
122,411
1,235
2
Dexcom, Inc.
394,681
4,270
2
Edwards Lifesciences Corp.
306,116
7,483
 
Eli Lilly & Co.
976,232
13,755
 
Gilead Sciences, Inc.
799,853
3,422
 
HCA Healthcare, Inc.
424,123
1,570
2
Henry Schein, Inc.
99,821
2,760
2
Hologic, Inc.
189,943
1,568
 
Humana, Inc.
626,071
808
2
IDEXX Laboratories, Inc.
343,255
1,363
2
Illumina, Inc.
398,950
301
2
Incyte Genomics, Inc.
26,079
1,059
2
Intuitive Surgical, Inc.
706,438
1,905
2
IQVIA Holdings, Inc.
293,351
24,854
 
Johnson & Johnson
3,407,732
803
2
Laboratory Corp. of America Holdings
160,415
1,469
 
McKesson Corp.
216,663
11,390
 
Medtronic PLC
1,145,492
24,011
 
Merck & Co., Inc.
1,805,867
198
2
Mettler-Toledo International, Inc.
197,586
4,526
2
Mylan NV
65,808
830
 
PerkinElmer, Inc.
107,527
1,065
 
Perrigo Co. PLC
46,722
52,792
 
Pfizer, Inc.
1,873,060
1,027
 
Quest Diagnostics, Inc.
125,438
1,211
2
Regeneron Pharmaceuticals, Inc.
658,251
1,311
 
ResMed, Inc.
251,633
37
 
STERIS PLC
6,556
2,447
 
Stryker Corp.
494,318
494
 
Teleflex, Inc.
157,206
3,648
 
Thermo Fisher Scientific, Inc.
1,725,942
8,823
 
UnitedHealth Group, Inc.
2,692,250
1,797
 
Universal Health Services, Inc., Class B
196,861
Annual Shareholder Report
13

Shares
 
 
Value
 
1
COMMON STOCKS—cont.
 
 
 
Health Care—cont.
 
742
2
Varian Medical Systems, Inc.
$128,218
2,346
2
Vertex Pharmaceuticals, Inc.
488,813
638
2
Waters Corp.
142,159
597
 
West Pharmaceutical Services, Inc.
162,426
1,027
 
Zimmer Biomet Holdings, Inc.
135,667
3,641
 
Zoetis, Inc.
577,281
 
 
TOTAL
35,607,361
 
 
Industrials—8.3%
 
5,550
 
3M Co.
887,778
1,777
 
Alaska Air Group, Inc.
67,331
776
 
Allegion PLC
76,436
1,898
 
Ametek, Inc.
186,384
4,195
 
Boeing Co.
605,716
1,012
 
C.H. Robinson Worldwide, Inc.
89,491
7,544
 
Carrier Global Corp.
251,894
4,228
 
Caterpillar, Inc.
664,007
769
 
Cintas Corp.
241,889
661
2
Copart, Inc.
72,948
6,957
 
CSX Corp.
549,186
1,260
 
Cummins, Inc.
277,061
3,530
 
Deere & Co.
797,462
6,746
 
Delta Air Lines, Inc.
206,697
1,424
 
Dover Corp.
157,651
3,502
 
Eaton Corp. PLC
363,473
5,383
 
Emerson Electric Co.
348,765
1,176
 
Equifax, Inc.
160,642
1,290
 
Expeditors International Washington, Inc.
113,997
8,322
 
Fastenal Co.
359,760
2,152
 
FedEx Corp.
558,379
4,843
 
Fortive Corp.
298,329
2,833
 
Fortune Brands Home & Security, Inc.
229,105
1,277
 
General Dynamics Corp.
167,708
85,420
 
General Electric Co.
633,816
5,813
 
Honeywell International, Inc.
958,854
3,249
 
Howmet Aerospace, Inc.
56,045
1,751
 
Hunt (J.B.) Transportation Services, Inc.
213,167
1,245
 
Huntington Ingalls Industries, Inc.
183,613
568
 
IDEX Corp.
96,782
Annual Shareholder Report
14

Shares
 
 
Value
 
1
COMMON STOCKS—cont.
 
 
 
Industrials—cont.
 
1,843
 
IHS Markit Ltd.
$149,043
2,567
 
Illinois Tool Works, Inc.
502,824
2,778
2
Ingersoll-Rand, Inc.
97,063
7,581
 
Johnson Controls International PLC
319,994
743
 
Kansas City Southern Industries, Inc.
130,872
1,323
 
L3Harris Technologies Inc.
213,149
2,371
 
Lockheed Martin Corp.
830,158
4,717
 
Masco Corp.
252,831
5,029
 
Nielsen Holdings PLC
67,942
2,274
 
Norfolk Southern Corp.
475,539
1,529
 
Northrop Grumman Corp.
443,135
1,586
 
Old Dominion Freight Lines, Inc.
301,927
3,571
 
Otis Worldwide Corp.
218,831
4,763
 
PACCAR, Inc.
406,665
1,083
 
Parker-Hannifin Corp.
225,654
1,305
 
Pentair PLC
64,937
3,346
 
Quanta Services, Inc.
208,891
14,734
 
Raytheon Technologies Corp.
800,351
2,241
 
Republic Services, Inc.
197,589
3,494
 
Robert Half International, Inc.
177,111
1,204
 
Rockwell Automation, Inc.
285,492
3,814
 
Rollins, Inc.
220,640
916
 
Roper Technologies, Inc.
340,147
779
 
Smith (A.O.) Corp.
40,267
335
 
Snap-On, Inc.
52,773
6,174
 
Southwest Airlines Co.
244,058
1,338
 
Stanley Black & Decker Inc.
222,376
426
2
Teledyne Technologies, Inc.
131,698
2,035
 
Trane Technologies plc
270,146
257
 
Transdigm Group, Inc.
122,694
6,238
 
Union Pacific Corp.
1,105,311
6,464
 
United Parcel Service, Inc.
1,015,559
1,397
2
United Rentals, Inc.
249,071
1,663
 
Verisk Analytics, Inc.
295,964
348
 
W.W. Grainger, Inc.
121,807
1,416
 
Wabtec Corp.
83,969
3,869
 
Waste Management, Inc.
417,504
Annual Shareholder Report
15

Shares
 
 
Value
 
1
COMMON STOCKS—cont.
 
 
 
Industrials—cont.
 
1,682
 
Xylem, Inc.
$146,569
 
 
TOTAL
21,324,917
 
 
Information Technology—27.0%
 
5,853
 
Accenture PLC
1,269,574
4,771
2
Adobe, Inc.
2,133,114
10,664
2
Advanced Micro Devices, Inc.
802,893
305
2
Akamai Technologies, Inc.
29,012
2,560
 
Amphenol Corp., Class A
288,870
2,335
 
Analog Devices, Inc.
276,768
719
2
Ansys, Inc.
218,842
151,866
 
Apple, Inc.
16,532,133
8,495
 
Applied Materials, Inc.
503,159
542
2
Arista Networks, Inc.
113,224
2,630
2
Autodesk, Inc.
619,470
3,085
 
Automatic Data Processing, Inc.
487,307
3,815
 
Broadcom, Inc.
1,333,838
1,256
 
Broadridge Financial Solutions
172,826
2,355
2
Cadence Design Systems, Inc.
257,566
196
 
CDW Corp.
24,030
40,326
 
Cisco Systems, Inc.
1,447,703
963
 
Citrix Systems, Inc.
109,079
5,189
 
Cognizant Technology Solutions Corp.
370,598
11,105
 
Corning, Inc.
355,027
9,291
 
DXC Technology Co.
171,140
784
2
F5 Networks, Inc.
104,225
5,893
 
Fidelity National Information Services, Inc.
734,209
5,461
2
Fiserv, Inc.
521,362
898
2
FleetCor Technologies Inc.
198,377
1,952
 
FLIR Systems, Inc.
67,715
1,047
2
Fortinet Inc.
115,557
1,033
2
Gartner, Inc., Class A
124,063
2,835
 
Global Payments, Inc.
447,193
1,525
 
Henry Jack & Associates, Inc.
226,081
6,063
 
HP, Inc.
108,891
7,304
 
IBM Corp.
815,565
42,454
 
Intel Corp.
1,879,863
2,478
 
Intuit, Inc.
779,777
1,107
2
IPG Photonics Corp.
205,858
Annual Shareholder Report
16

Shares
 
 
Value
 
1
COMMON STOCKS—cont.
 
 
 
Information Technology—cont.
 
2,062
 
Juniper Networks, Inc.
$40,663
1,850
2
Keysight Technologies, Inc.
194,009
1,312
 
KLA Corp.
258,700
1,280
 
Lam Research Corp.
437,862
1,413
 
Leidos Holdings, Inc.
117,279
8,259
 
Mastercard, Inc.
2,383,878
2,480
 
Maxim Integrated Products, Inc.
172,732
2,226
 
Microchip Technology, Inc.
233,908
7,857
2
Micron Technology, Inc.
395,521
70,803
 
Microsoft Corp.
14,335,483
1,632
 
Motorola, Inc.
257,954
2,685
 
NetApp, Inc.
117,845
6,045
 
NVIDIA Corp.
3,030,721
18,553
 
Oracle Corp.
1,041,009
1,364
 
Paychex, Inc.
112,189
86
2
Paycom Software, Inc.
31,312
11,739
2
PayPal Holdings, Inc.
2,184,980
870
2
Qorvo, Inc.
110,803
10,496
 
Qualcomm, Inc.
1,294,787
8,423
2
Salesforce.com, Inc.
1,956,410
2,529
 
Seagate Technology PLC
120,937
2,085
2
ServiceNow, Inc.
1,037,433
1,378
 
Skyworks Solutions, Inc.
194,698
1,294
2
Synopsys, Inc.
276,735
2,890
 
TE Connectivity Ltd.
279,983
1,221
 
Teradyne, Inc.
107,265
8,671
 
Texas Instruments, Inc.
1,253,740
299
2
Tyler Technologies, Inc.
114,930
884
2
Verisign, Inc.
168,579
15,883
 
Visa, Inc., Class A
2,886,100
1,937
2
Vontier Corp.
55,669
5,006
 
Western Union Co.
97,317
2,591
 
Xerox Holdings Corp.
45,032
2,547
 
Xilinx, Inc.
302,303
1,008
2
Zebra Technologies Corp., Class A
285,909
 
 
TOTAL
69,779,584
 
 
Materials—2.6%
 
1,984
 
Air Products & Chemicals, Inc.
548,060
Annual Shareholder Report
17

Shares
 
 
Value
 
1
COMMON STOCKS—cont.
 
 
 
Materials—cont.
 
737
 
Albemarle Corp.
$68,696
14,595
 
Amcor PLC
152,226
884
 
Avery Dennison Corp.
122,337
1,511
 
Ball Corp.
134,479
2,357
 
CF Industries Holdings, Inc.
65,077
6,206
 
Corteva, Inc.
204,674
9,504
 
Dow, Inc
432,337
9,024
 
DuPont de Nemours, Inc.
513,285
964
 
Eastman Chemical Co.
77,930
2,453
 
Ecolab, Inc.
450,346
2,370
 
FMC Corp.
243,494
5,956
 
Freeport-McMoRan, Inc.
103,277
4,292
 
International Paper Co.
187,775
4,820
 
Linde PLC
1,062,039
2,611
 
LyondellBasell Industries N.V.
178,723
9
 
Martin Marietta Materials
2,397
10,003
 
Mosaic Co./The
185,056
9,493
 
Newmont Corp.
596,540
2,395
 
Nucor Corp.
114,385
1,074
 
Packaging Corp. of America
122,962
2,010
 
PPG Industries, Inc.
260,737
1,655
 
Sealed Air Corp.
65,521
731
 
Sherwin-Williams Co.
502,913
1,047
 
Vulcan Materials Co.
151,647
1,741
 
WestRock Co.
65,375
 
 
TOTAL
6,612,288
 
 
Real Estate—2.6%
 
938
 
Alexandria Real Estate Equities, Inc.
142,126
4,677
 
American Tower Corp.
1,074,073
4,980
 
Apartment Investment & Management Co., Class A
158,862
1,373
 
Avalonbay Communities, Inc.
191,025
1,182
 
Boston Properties, Inc.
85,589
2,920
2
CBRE Group, Inc.
147,168
4,735
 
Crown Castle International Corp.
739,607
1,633
 
Digital Realty Trust, Inc.
235,642
2,770
 
Duke Realty Corp.
105,232
1,003
 
Equinix, Inc.
733,434
3,412
 
Equity Residential Properties Trust
160,296
Annual Shareholder Report
18

Shares
 
 
Value
 
1
COMMON STOCKS—cont.
 
 
 
Real Estate—cont.
 
622
 
Essex Property Trust, Inc.
$127,255
975
 
Extra Space Storage, Inc.
113,051
4,866
 
Healthpeak Properties, Inc.
131,236
6,198
 
Host Hotels & Resorts, Inc.
64,955
850
 
Mid-American Apartment Communities, Inc.
99,136
6,667
 
ProLogis Inc.
661,366
1,500
 
Public Storage
343,605
3,037
 
Realty Income Corp.
175,721
1,301
 
Regency Centers Corp.
46,303
1,462
 
SBA Communications, Corp.
424,521
3,230
 
Simon Property Group, Inc.
202,876
175
 
SL Green Realty Corp.
7,492
3,163
 
UDR, Inc.
98,812
541
 
Ventas, Inc.
21,353
4,158
 
Welltower, Inc.
223,576
10,384
 
Weyerhaeuser Co.
283,379
 
 
TOTAL
6,797,691
 
 
Utilities—3.2%
 
4,819
 
AES Corp.
93,971
1,840
 
Alliant Energy Corp.
101,715
1,980
 
Ameren Corp.
160,618
4,976
 
American Electric Power Co., Inc.
447,492
2,623
 
American Water Works Co., Inc.
394,788
2,350
 
CMS Energy Corp.
148,825
3,478
 
Consolidated Edison Co.
272,988
7,684
 
Dominion Energy, Inc.
617,333
1,610
 
DTE Energy Co.
198,706
7,094
 
Duke Energy Corp.
653,428
1,068
 
Edison International
59,851
1,759
 
Entergy Corp.
178,046
2,485
 
Evergy, Inc.
137,172
4,804
 
EverSource Energy
419,245
9,558
 
Exelon Corp.
381,269
5,956
 
FirstEnergy Corp.
177,012
20,224
 
NextEra Energy, Inc.
1,480,599
9,405
 
NiSource, Inc.
216,033
7,322
 
PPL Corp.
201,355
7,236
 
Public Service Enterprises Group, Inc.
420,773
Annual Shareholder Report
19

Shares
 
 
Value
 
1
COMMON STOCKS—cont.
 
 
 
Utilities—cont.
 
2,855
 
Sempra Energy
$357,903
10,091
 
Southern Co.
579,728
2,706
 
WEC Energy Group, Inc.
272,088
4,543
 
Xcel Energy, Inc.
318,146
 
 
TOTAL
8,289,084
 
 
TOTAL COMMON STOCKS
(IDENTIFIED COST $66,141,402)
254,144,568
 
 
INVESTMENT COMPANY—1.6%
 
4,230,175
 
Federated Hermes Institutional Prime Value Obligations Fund,
Institutional Shares, 0.10%3
(IDENTIFIED COST $4,231,097)
4,231,867
 
 
TOTAL INVESTMENT IN SECURITIES—100.0%
(IDENTIFIED COST $70,372,499)4
258,376,435
 
 
OTHER ASSETS AND LIABILITIES - NET—(0.0)%5
(24,734)
 
 
TOTAL NET ASSETS—100%
$258,351,701
At October 31, 2020, the Fund had the following outstanding futures contracts:
Description
Number of
Contracts
Notional
Value
Expiration
Date
Value and
Unrealized
(Depreciation)
Long Futures
 
 
 
 
2S&P 500 E-Mini Index
28
$4,570,650
December 2020
$(86,445)
Net Unrealized Depreciation on Futures Contracts is included in “Other Assets and Liabilities—Net.”
Annual Shareholder Report
20

Affiliated fund holdings are investment companies which are managed by the Manager or an affiliate of the Manager. Transactions with affiliated fund holdings during the period ended October 31, 2020, were as follows:
 
Federated
Hermes Government
Obligations Fund,
Premier Shares*
Federated
Hermes Institutional
Prime Value
Obligations Fund,
Institutional Shares
Total
Affiliated
Transactions
Value as of 10/31/2019
$
$5,040,916
$5,040,916
Purchases at Cost
951,264
88,192,046
89,143,310
Proceeds from Sales
(951,264)
(89,000,365)
(89,951,629)
Change in
Unrealized Appreciation/Depreciation
$N/A
$62
$62
Net Realized Gain/(Loss)
$N/A
$(792)
$(792)
Value as of 10/31/2020
$
$4,231,867
$4,231,867
Shares Held as of 10/31/2020
4,230,175
4,230,175
Dividend Income
$16
$75,438
$75,454
*
All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions.
1
The Fund purchases index futures contracts to efficiently manage cash flows resulting from shareholder purchases and redemptions, dividend and capital gain payments to shareholders and corporate actions while maintaining exposure to the S&P 500 Index and minimizing trading costs. The underlying face amount, at value, of open index futures contracts is $4,570,650 at October 31, 2020, which represents 1.8% of total net assets. Taking into consideration these open index futures contracts, the Fund’s effective total exposure to the S&P 500 Index is 100.2%.
2
Non-income-producing security.
3
7-day net yield.
4
The cost of investments for federal tax purposes amounts to $73,088,308.
5
Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.
Note: The categories of investments are shown as a percentage of total net assets at October 31, 2020.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
As of October 31, 2020, all investments of the Fund utilized Level 1 inputs in valuing the Fund’s assets carried at fair value.
Annual Shareholder Report
21

Financial Highlights–Class C Shares
(For a Share Outstanding Throughout Each Period)
Year Ended October 31
2020
2019
2018
2017
2016
Net Asset Value, Beginning of Period
$9.91
$12.74
$15.09
$14.54
$16.06
Income From Investment Operations:
 
 
 
 
 
Net investment income
0.041
0.061
0.061
0.09
0.11
Net realized and unrealized gain
0.68
1.03
0.75
2.75
0.32
TOTAL FROM INVESTMENT OPERATIONS
0.72
1.09
0.81
2.84
0.43
Less Distributions:
 
 
 
 
 
Distributions from net investment income
(0.05)
(0.06)
(0.07)
(0.09)
(0.11)
Distributions from net realized gain
(1.37)
(3.86)
(3.09)
(2.20)
(1.84)
TOTAL DISTRIBUTIONS
(1.42)
(3.92)
(3.16)
(2.29)
(1.95)
Net Asset Value, End of Period
$9.21
$9.91
$12.74
$15.09
$14.54
Total Return2
8.04%
12.59%
6.09%
22.22%
3.19%
Ratios to Average Net Assets:
 
 
 
 
 
Net expenses3
1.42%4
1.41%
1.41%
1.42%
1.42%
Net investment income
0.46%
0.61%
0.48%
0.60%
0.75%
Expense waiver/reimbursement5
0.12%
0.10%
0.06%
0.05%
0.05%
Supplemental Data:
 
 
 
 
 
Net assets, end of period (000 omitted)
$30,451
$35,742
$37,324
$41,904
$36,956
Portfolio turnover
29%
32%
30%
31%
31%
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.
3
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
4
The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio is 1.42% for the year ended October 31, 2020, after taking into account this expense reduction.
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.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
22

Financial Highlights–Class R Shares
(For a Share Outstanding Throughout Each Period)
Year Ended October 31
2020
2019
2018
2017
2016
Net Asset Value, Beginning of Period
$10.12
$12.92
$15.27
$14.68
$16.19
Income From Investment Operations:
 
 
 
 
 
Net investment income
0.071
0.091
0.101
0.12
0.15
Net realized and unrealized gain
0.70
1.06
0.74
2.80
0.34
TOTAL FROM INVESTMENT OPERATIONS
0.77
1.15
0.84
2.92
0.49
Less Distributions:
 
 
 
 
 
Distributions from net investment income
(0.08)
(0.09)
(0.10)
(0.13)
(0.16)
Distributions from net realized gain
(1.37)
(3.86)
(3.09)
(2.20)
(1.84)
TOTAL DISTRIBUTIONS
(1.45)
(3.95)
(3.19)
(2.33)
(2.00)
Net Asset Value, End of Period
$9.44
$10.12
$12.92
$15.27
$14.68
Total Return2
8.39%
13.00%
6.31%
22.65%
3.56%
Ratios to Average Net Assets:
 
 
 
 
 
Net expenses3
1.11%4
1.08%
1.11%
1.11%
1.10%
Net investment income
0.75%
0.94%
0.79%
0.92%
1.07%
Expense waiver/reimbursement5
0.12%
0.11%
0.07%
0.07%
0.08%
Supplemental Data:
 
 
 
 
 
Net assets, end of period (000 omitted)
$35,879
$38,142
$41,765
$47,867
$47,998
Portfolio turnover
29%
32%
30%
31%
31%
1
Per share numbers have been calculated using the average shares method.
2
Based on net asset value.
3
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
4
The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio is 1.11% for the year ended October 31, 2020, after taking into account this expense reduction.
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.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
23

Financial Highlights–Institutional Shares
(For a Share Outstanding Throughout Each Period)
Year Ended October 31
2020
2019
2018
2017
2016
Net Asset Value, Beginning of Period
$10.31
$13.09
$15.42
$14.80
$16.31
Income From Investment Operations:
 
 
 
 
 
Net investment income
0.141
0.161
0.211
0.25
0.28
Net realized and unrealized gain
0.70
1.08
0.75
2.80
0.31
TOTAL FROM INVESTMENT OPERATIONS
0.84
1.24
0.96
3.05
0.59
Less Distributions:
 
 
 
 
 
Distributions from net investment income
(0.14)
(0.16)
(0.20)
(0.23)
(0.26)
Distributions from net realized gain
(1.37)
(3.86)
(3.09)
(2.20)
(1.84)
TOTAL DISTRIBUTIONS
(1.51)
(4.02)
(3.29)
(2.43)
(2.10)
Net Asset Value, End of Period
$9.64
$10.31
$13.09
$15.42
$14.80
Total Return2
9.16%
13.76%
7.16%
23.55%
4.30%
Ratios to Average Net Assets:
 
 
 
 
 
Net expenses3
0.36%4
0.36%
0.36%
0.36%
0.35%
Net investment income
1.50%
1.66%
1.56%
1.67%
1.82%
Expense waiver/reimbursement5
0.16%
0.13%
0.11%
0.08%
0.09%
Supplemental Data:
 
 
 
 
 
Net assets, end of period (000 omitted)
$119,545
$133,835
$137,792
$201,836
$208,577
Portfolio turnover
29%
32%
30%
31%
31%
1
Per share numbers have been calculated using the average shares method.
2
Based on net asset value.
3
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
4
The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio is 0.36% for the year ended October 31, 2020, after taking into account this expense reduction.
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.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
24

Financial Highlights–Service Shares
(For a Share Outstanding Throughout Each Period)
Year Ended October 31
2020
2019
2018
2017
2016
Net Asset Value, Beginning of Period
$10.14
$12.94
$15.28
$14.69
$16.20
Income From Investment Operations:
 
 
 
 
 
Net investment income
0.111
0.131
0.161
0.17
0.21
Net realized and unrealized gain
0.70
1.06
0.75
2.81
0.34
TOTAL FROM INVESTMENT OPERATIONS
0.81
1.19
0.91
2.98
0.55
Less Distributions:
 
 
 
 
 
Distributions from net investment income
(0.12)
(0.13)
(0.16)
(0.19)
(0.22)
Distributions from net realized gain
(1.37)
(3.86)
(3.09)
(2.20)
(1.84)
TOTAL DISTRIBUTIONS
(1.49)
(3.99)
(3.25)
(2.39)
(2.06)
Net Asset Value, End of Period
$9.46
$10.14
$12.94
$15.28
$14.69
Total Return2
8.87%
13.41%
6.85%
23.14%
4.01%
Ratios to Average Net Assets:
 
 
 
 
 
Net expenses3
0.66%4
0.66%
0.66%
0.66%
0.65%
Net investment income
1.23%
1.36%
1.24%
1.39%
1.52%
Expense waiver/reimbursement5
0.41%
0.39%
0.35%
0.35%
0.36%
Supplemental Data:
 
 
 
 
 
Net assets, end of period (000 omitted)
$72,477
$107,852
$110,443
$144,226
$180,503
Portfolio turnover
29%
32%
30%
31%
31%
1
Per share numbers have been calculated using the average shares method.
2
Based on net asset value.
3
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
4
The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio is 0.66% for the year ended October 31, 2020, after taking into account this expense reduction.
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.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
25

Statement of Assets and LiabilitiesOctober 31, 2020
Assets:
 
 
Investment in securities, at value including $4,231,867 of investment in an
affiliated holding* (identified cost $70,372,499)
 
$258,376,435
Cash
 
988
Due from broker
 
336,000
Income receivable
 
256,222
Receivable for shares sold
 
121,543
Receivable for investments sold
 
26,653
Income receivable from an affiliated holding
 
756
TOTAL ASSETS
 
259,118,597
Liabilities:
 
 
Payable for shares redeemed
$452,599
 
Payable for variation margin on futures contracts
51,833
 
Payable for portfolio accounting fees
71,541
 
Payable for transfer agent fees
53,130
 
Payable for distribution services fees (Note 5)
39,686
 
Payable for other service fees (Notes 2 and 5)
32,460
 
Payable for custodian fees
27,194
 
Payable for management fee (Note 5)
9,008
 
Payable for administrative fee (Note 5)
1,238
 
Accrued expenses (Note 5)
28,207
 
TOTAL LIABILITIES
 
766,896
Net assets for 27,168,421 shares outstanding
 
$258,351,701
Net Assets Consists of:
 
 
Paid-in capital
 
$18,142,963
Total distributable earnings
 
240,208,738
TOTAL NET ASSETS
 
$258,351,701
Annual Shareholder Report
26

Statement of Assets and Liabilities–continued
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
 
 
Class C Shares:
 
 
Net asset value per share ($30,451,392 ÷ 3,307,396 shares outstanding)
no par value, unlimited shares authorized
 
$9.21
Offering price per share
 
$9.21
Redemption proceeds per share (99.00/100 of $9.21)
 
$9.12
Class R Shares:
 
 
Net asset value per share ($35,878,899 ÷ 3,801,959 shares outstanding)
no par value, unlimited shares authorized
 
$9.44
Offering price per share
 
$9.44
Redemption proceeds per share
 
$9.44
Institutional Shares:
 
 
Net asset value per share ($119,544,747 ÷ 12,398,717 shares outstanding)
no par value, unlimited shares authorized
 
$9.64
Offering price per share
 
$9.64
Redemption proceeds per share
 
$9.64
Service Shares:
 
 
Net asset value per share ($72,476,663 ÷ 7,660,349 shares outstanding)
no par value, unlimited shares authorized
 
$9.46
Offering price per share
 
$9.46
Redemption proceeds per share
 
$9.46
*
See information listed after the Fund’s Portfolio of Investments
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
27

Statement of OperationsYear Ended October 31, 2020
Investment Income:
 
 
 
Dividends (including $75,438 received from an affiliated
holding* and net of foreign taxes withheld of $1,074)
 
 
$5,227,817
Net income on securities loaned (includes $16 received from
an affiliated holding* related to cash collateral balances)
(Note 2)
 
 
811
TOTAL INCOME
 
 
5,228,628
Expenses:
 
 
 
Management fee (Note 5)
 
$836,105
 
Custodian fees
 
44,182
 
Transfer agent fees (Note 2)
 
288,441
 
Directors’/Trustees’ fees (Note 5)
 
4,940
 
Auditing fees
 
30,200
 
Legal fees
 
11,050
 
Distribution services fee (Note 5)
 
680,657
 
Other service fees (Notes 2 and 5)
 
290,771
 
Portfolio accounting fees
 
148,360
 
Share registration costs
 
70,940
 
Printing and postage
 
30,341
 
Miscellaneous (Note 5)
 
74,089
 
TOTAL EXPENSES
 
2,510,076
 
Waivers, Reimbursements and Reduction:
 
 
 
Waiver/reimbursement of management fee (Note 5)
$(328,336)
 
 
Waiver/reimbursement of other operating expenses (Notes 2
and 5)
(294,333)
 
 
Reduction of custodian fees (Note 6)
(225)
 
 
TOTAL WAIVERS, REIMBURSEMENTS AND REDUCTION
 
(622,894)
 
Net expenses
 
 
1,887,182
Net investment income
 
 
$3,341,446
Annual Shareholder Report
28

Statement of Operations–continued
Realized and Unrealized Gain (Loss) on Investments,
Foreign Currency Transactions and Futures Contracts:
 
 
 
Net realized gain on investments and foreign currency
transactions (including realized loss of ($792) on sales of
investments in an affiliated holding*)
 
 
$54,351,563
Net realized gain on futures contracts
 
 
856,420
Net change in unrealized appreciation of investments
(including net change in unrealized appreciation of $62 of
investments in an affiliated holding*)
 
 
(35,104,163)
Net change in unrealized appreciation of futures contracts
 
 
(149,132)
Net realized and unrealized gain (loss) on investments,
foreign currency transactions and futures contracts
 
 
19,954,688
Change in net assets resulting from operations
 
 
$23,296,134
*
See information listed after the Fund’s Portfolio of Investments.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
29

Statement of Changes in Net Assets
Year Ended October 31
2020
2019
Increase (Decrease) in Net Assets
 
 
Operations:
 
 
Net investment income
$3,341,446
$4,302,258
Net realized gain
55,207,983
40,702,928
Net change in unrealized appreciation/depreciation
(35,253,295)
(5,269,748)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
23,296,134
39,735,438
Distributions to Shareholders:
 
 
Class C Shares
(5,045,055)
(11,464,301)
Class R Shares
(5,432,608)
(12,531,865)
Institutional Shares
(19,916,477)
(42,273,684)
Service Shares
(13,487,436)
(34,219,634)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS
TO SHAREHOLDERS
(43,881,576)
(100,489,484)
Share Transactions:
 
 
Proceeds from sale of shares
39,077,307
48,431,580
Net asset value of shares issued to shareholders in payment of
distributions declared
42,492,427
96,301,169
Cost of shares redeemed
(118,203,823)
(95,731,113)
CHANGE IN NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
(36,634,089)
49,001,636
Change in net assets
(57,219,531)
(11,752,410)
Net Assets:
 
 
Beginning of period
315,571,232
327,323,642
End of period
$258,351,701
$315,571,232
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
30

Notes to Financial Statements
October 31, 2020
1. ORGANIZATION
Federated Hermes Index Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of two portfolios. The financial statements included herein are only those of Federated Hermes Max-Cap Index Fund (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers four classes of shares: Class C Shares, Class R Shares, Institutional Shares and Service Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide investment results that generally correspond to the aggregate price and performance of publicly traded common stocks comprising the Standard & Poor’s 500 Index (S&P 500).
Prior to June 29, 2020, the names of the Trust and Fund were Federated Index Trust and Federated Max-Cap Index Fund, respectively.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
■ Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
■ Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Fund’s Board of Trustees (the “Trustees”).
■ Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs.
■ Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations.
■ Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.
■ For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.
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If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Fund’s valuation policies and procedures, or if information furnished by a pricing service, in the opinion of the valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.
Fair Valuation and Significant Events Procedures
The Trustees have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Trustees have appointed a Valuation Committee comprised of officers of the Fund, Federated Equity Management Company of Pennsylvania (the “Manager”) and certain of the Manager’s affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Manager based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
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32

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Manager determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
■ With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;
■ Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;
■ Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
The Trustees have adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Trustees. The Trustees have ultimate responsibility for any fair valuations made in response to a significant event.
Repurchase Agreements
The Fund may invest in repurchase agreements for short-term liquidity purposes. It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund’s custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a “securities entitlement” and exercises “control” as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.
The insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.
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The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund’s Manager and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.
Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid quarterly. Non-cash dividends included in dividend income, if any, are recorded at fair value. Amortization/accretion of premium and discount is included in investment income. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. The detail of the total fund expense waivers, reimbursements and reduction of $622,894 is disclosed in various locations in this Note 2, Note 5 and Note 6. For the year ended October 31, 2020, transfer agent fees for the Fund were as follows:
 
Transfer Agent
Fees Incurred
Transfer Agent
Fees Reimbursed
Class C Shares
$28,543
$
Class R Shares
103,058
(380)
Institutional Shares
90,337
(47,221)
Service Shares
66,503
(37,417)
TOTAL
$288,441
$(85,018)
Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Annual Shareholder Report
34

Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund’s Class C Shares, Institutional Shares and Service Shares to unaffiliated financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees. For the year ended October 31, 2020, other service fees for the Fund were as follows:
 
Other Service
Fees Incurred
Class C Shares
$82,032
Service Shares
208,739
TOTAL
$290,771
For the year ended October 31, 2020, the Fund’s Institutional Shares did not incur other service fees.
Federal Taxes
It is the Fund’s policy to comply with the Subchapter M provision of the Internal Revenue Code and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the year ended October 31, 2020, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of October 31, 2020, tax years 2017 through 2020 remain subject to examination by the Fund’s major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.
The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or gains are earned.
When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Futures Contracts
The Fund purchases and sells financial futures contracts to manage market risk and maintain exposure to the S&P 500 Index. Upon entering into a financial futures contract with a broker, the Fund is required to deposit with a broker, either U.S. government securities or a specified amount of cash, which is shown as due from broker in the Statement of Assets and Liabilities. Futures contracts are valued daily and unrealized gains or losses are recorded in a “variation margin” account. The Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation
Annual Shareholder Report
35

margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. There is minimal counterparty risk to the Fund since futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures contracts, guarantees the futures contracts against default.
Futures contracts outstanding at period end are listed after the Fund’s Portfolio of Investments.
The average notional value of long futures contracts held by the Fund throughout the period was $7,621,903. This is based on amounts held as of each month-end throughout the fiscal period.
Foreign Currency Translation
The accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the rates of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at period end, resulting from changes in the exchange rate.
Securities Lending
The Fund participates in a securities lending program providing for the lending of equity securities to qualified brokers. The term of the loans within the program is one year or less. The Fund normally receives cash collateral for securities loaned that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. Investments in money market funds may include funds with a “floating” NAV that can impose redemption fees and liquidity gates, impose certain operational impediments to investing cash collateral, and, if the investee fund’s NAV decreases, result in the Fund recognizing losses and being required to cover the decrease in the value of the cash collateral. Collateral is maintained at a minimum level of 100% of the market value of investments loaned, plus interest, if applicable. Earnings on collateral are allocated between the borrower of the security, the securities lending agent, as a fee for its services under the program and the Fund, according to agreed-upon rates. The Fund will not have the right to vote on securities while they are on loan. However, the Fund will attempt to terminate a loan in an effort to reacquire the securities in time to vote on matters that are deemed to be material by the Manager. There can be no assurance that the Fund will have sufficient notice of such matters to be able to terminate the loan in time to vote thereon.
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36

Securities lending transactions are subject to Master Netting Agreements which are agreements between the Fund and its counterparties that provide for the net settlement of all transactions and collateral with the Fund, through a single payment, in the event of default or termination. Additionally, the securities lending agreement executed by the Fund includes an indemnification clause. This clause stipulates that the borrower will reimburse the Fund for any losses as a result of any failure of the borrower to return equivalent securities to the Fund.
As of October 31, 2020, the Fund has no outstanding securities on loan.
Additional Disclosure Related to Derivative Instruments
Fair Value of Derivative Instruments
 
 
Liability
 
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
$86,445*
*
Includes cumulative depreciation 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.
The Effect of Derivative Instruments on the Statement of Operations for the Year Ended October 31, 2020
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
 
Futures
Contracts
Equity Contracts
$856,420
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
 
Futures
Contracts
Equity Contracts
$(149,132)
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ materially from those estimated. The Fund applies investment company accounting and reporting guidance.
Annual Shareholder Report
37

3. SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
Year Ended October 31
2020
2019
Class C Shares:
Shares
Amount
Shares
Amount
Shares sold
339,481
$2,955,462
433,017
$4,036,702
Shares issued to shareholders in payment of
distributions declared
543,476
4,770,810
1,231,079
10,855,403
Shares redeemed
(1,183,684)
(10,363,587)
(986,588)
(9,168,746)
NET CHANGE RESULTING FROM
CLASS C SHARE TRANSACTIONS
(300,727)
$(2,637,315)
677,508
$5,723,359
Year Ended October 31
2020
2019
Class R Shares:
Shares
Amount
Shares
Amount
Shares sold
1,008,505
$8,846,131
921,790
$8,857,701
Shares issued to shareholders in payment of
distributions declared
595,458
5,358,343
1,314,903
11,847,715
Shares redeemed
(1,571,488)
(13,847,680)
(1,698,885)
(16,420,616)
NET CHANGE RESULTING FROM
CLASS R SHARE TRANSACTIONS
32,475
$356,794
537,808
$4,284,800
Year Ended October 31
2020
2019
Institutional Shares:
Shares
Amount
Shares
Amount
Shares sold
1,765,717
$16,766,160
2,414,223
$22,746,339
Shares issued to shareholders in payment of
distributions declared
2,079,777
19,074,736
4,329,927
39,806,967
Shares redeemed
(4,430,055)
(41,088,239)
(4,290,099)
(41,198,994)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE TRANSACTIONS
(584,561)
$(5,247,343)
2,454,051
$21,354,312
Year Ended October 31
2020
2019
Service Shares:
Shares
Amount
Shares
Amount
Shares sold
1,170,774
$10,509,554
1,318,157
$12,790,838
Shares issued to shareholders in payment of
distributions declared
1,476,137
13,288,538
3,737,227
33,791,084
Shares redeemed
(5,620,962)
(52,904,317)
(2,955,644)
(28,942,757)
NET CHANGE RESULTING FROM
SERVICE SHARE TRANSACTIONS
(2,974,051)
$(29,106,225)
2,099,740
$17,639,165
NET CHANGE RESULTING FROM
TOTAL FUND SHARE TRANSACTIONS
(3,826,864)
$(36,634,089)
5,769,107
$49,001,636
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38

4. FEDERAL TAX INFORMATION
The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended October 31, 2020 and 2019, was as follows:
 
2020
2019
Ordinary income1
$3,550,975
$7,861,699
Long-term capital gains
$40,330,601
$92,627,785
1
For tax purposes, short-term capital gain distributions are considered ordinary income distributions.
As of October 31, 2020, the components of distributable earnings on a tax basis were as follows:
Undistributed ordinary income
$312,245
Net unrealized appreciation
$185,288,127
Undistributed long-term capital gains
$54,608,366
The difference between book-basis and tax-basis net unrealized appreciation/depreciation is attributable to differing treatments for deferral of losses on wash sales, futures mark-to market and non-taxable dividends.
At October 31, 2020, the cost of investments for federal tax purposes was $73,088,308. The net unrealized appreciation of investments for federal tax purposes was $185,288,127. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $186,344,590 and net unrealized depreciation from investments for those securities having an excess of cost over value of $1,056,463. The amounts presented are inclusive of derivative contracts.
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Management Fee
The management agreement between the Fund and the Manager provides for an annual fee equal to 0.30% of the Fund’s average daily net assets. Subject to the terms described in the Expense Limitation note, the Manager may voluntarily choose to waive any portion of its fee. For the year ended October 31, 2020, the Manager voluntarily waived $322,692 of its fee.
The Manager has agreed to reimburse the Fund for certain investment adviser fees as a result of transactions in other affiliated investment companies. For the year ended October 31, 2020, the Manager reimbursed $5,644.
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39

Distribution Services Fee
The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund’s Class C Shares, Class R Shares and Service Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at the following percentages of average daily net assets annually, to compensate FSC:
Share Class Name
Percentage of Average Daily
Net Assets of Class
Class C Shares
0.75%
Class R Shares
0.50%
Service Shares
0.30%
Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee. For the year ended October 31, 2020, distribution services fees for the Fund were as follows:
 
Distribution Services
Fees Incurred
Distribution Services
Fees Waived
Class C Shares
$246,392
$
Class R Shares
181,167
Service Shares
253,098
(209,315)
TOTAL
$680,657
$(209,315)
When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the year ended October 31, 2020, FSC retained $134,831 of fees paid by the Fund.
Sales Charges
Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the year ended October 31, 2020, FSC retained $710 of CDSC relating to redemptions of Class C Shares.
Other Service Fees
For the year ended October 31, 2020, FSSC received $4,489 of the other service fees disclosed in Note 2.
Expense Limitation
The Manager and certain of its affiliates (which may include FSC and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund’s Class C Shares, Class R Shares, Institutional Shares and Service Shares (after the voluntary waivers and/or reimbursements) will not exceed 1.44%, 1.11%, 0.36% and 0.66% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) January 1, 2022; or (b) the date of the Fund’s
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next effective Prospectus. While the Manager and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.
Interfund Transactions
During the year ended October 31, 2020, the Fund engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and amounted to $332,346 and $31,924, respectively. Net realized loss recognized on these transactions was $15,483.
Directors’/Trustees’ and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Independent Directors’/Trustees’ fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Manager which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
6. EXPENSE REDUCTION
Through arrangements with the Fund’s custodian, net credits realized as a result of uninvested cash balances were used to reduce custody expenses. For the year ended October 31, 2020, the Fund’s expenses were reduced by $225 under these arrangements.
7. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended October 31, 2020, were as follows:
Purchases
$79,630,677
Sales
$155,320,382
8. LINE OF CREDIT
The Fund participates with certain other Federated Hermes Funds, on a several basis, in an up to $500,000,000 unsecured, 364-day, committed, revolving line of credit (LOC) agreement dated June 24, 2020. The LOC was made available to temporarily finance the repurchase or redemption of shares of the Fund, failed trades, payment of dividends, settlement of trades and for other short-term, temporary or emergency general business purposes. The Fund cannot borrow under the LOC if an inter-fund loan is outstanding. The Fund’s ability to borrow under the LOC also is subject to the limitations of the Act and various conditions precedent that must be satisfied before the Fund can borrow. Loans under the LOC are charged interest at a fluctuating rate per annum equal to the highest, on any day, of (a) (i) the federal funds effective rate, (ii) the one month London Interbank Offered Rate (LIBOR), or a replacement rate as appropriate, and (iii) 0.0%, plus (b) a margin. Any fund eligible to borrow under the LOC
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41

pays its pro rata share of an upfront fee, and its pro rata share of a commitment fee based on the amount of the lenders’ commitment that has not been utilized, quarterly in arrears and at maturity. As of October 31, 2020, the Fund had no outstanding loans. During the year ended October 31, 2020, the Fund did not utilize the LOC.
9. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Hermes, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of October 31, 2020, there were no outstanding loans. During the year ended October 31, 2020, the program was not utilized.
10. OTHER MATTERS
An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread globally. As of the date of the issuance of these financial statements, this coronavirus has resulted in closing borders, enhanced health screenings, healthcare service preparation and delivery, quarantines, cancellations, and disruptions to supply chains, workflow operations and consumer activity, as well as general concern and uncertainty. The impact of this coronavirus may be short-term or may last for an extended period of time and has resulted in a substantial economic downturn. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic risks. The impact of this outbreak, and other epidemics and pandemics that may arise in the future, could continue to negatively affect the worldwide economy, as well as the economies of individual countries, individual companies (including certain Fund service providers and issuers of Fund’s investments) and the markets in general in significant and unforeseen ways. Any such impact could adversely affect the Fund’s performance.
11. FEDERAL TAX INFORMATION (UNAUDITED)
For the year ended October 31, 2020, the amount of long-term capital gains designated by the Fund was $40,330,601.
For the fiscal year ended October 31, 2020, 100% of total ordinary income distributions made by the Fund are qualifying dividends which may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Act of 2003. Complete information is reported in conjunction with the reporting of your distributions on Form 1099-DIV.
Of the ordinary income distributions made by the Fund during the year ended October 31, 2020, 100% qualify for the dividend received deduction available to corporate shareholders.
Annual Shareholder Report
42

Report of Independent Registered Public Accounting Firm
TO THE BOARD OF Trustees OF Federated Hermes Index Trust AND SHAREHOLDERS OF Federated Hermes max-Cap Index fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Federated Hermes Max-Cap Index Fund (formerly, Federated Max-Cap Index Fund) (the “Fund”) (one of the portfolios constituting Federated Hermes Index Trust (formerly, Federated Index Trust) (the “Trust”)), including the portfolio of investments, as of October 31, 2020, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting Federated Hermes Index Trust) at October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Annual Shareholder Report
43

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Federated Hermes investment companies since 1979.
Boston, Massachusetts
December 23, 2020
Annual Shareholder Report
44

Shareholder Expense Example (unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2020 to October 31, 2020.
ACTUAL EXPENSES
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Annual Shareholder Report
45

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase or redemption payments. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
 
Beginning
Account Value
5/1/2020
Ending
Account Value
10/31/2020
Expenses Paid
During Period1
Actual:
 
 
 
Class C Shares
$1,000
$1,124.80
$7.58
Class R Shares
$1,000
$1,125.80
$5.98
Institutional Shares
$1,000
$1,129.50
$1.98
Service Shares
$1,000
$1,127.90
$3.53
Hypothetical (assuming a 5% return
before expenses):
 
 
 
Class C Shares
$1,000
$1,018.00
$ 7.20
Class R Shares
$1,000
$1,019.51
$ 5.69
Institutional Shares
$1,000
$1,023.28
$1.88
Service Shares
$1,000
$1,021.82
$3.35
1
Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half-year period). The annualized net expense ratios are as follows:
Class C Shares
1.42%
Class R Shares
1.12%
Institutional Shares
0.37%
Service Shares
0.66%
Annual Shareholder Report
46

Board of Trustees and Trust Officers
The Board of Trustees is responsible for managing the Trust’s business affairs and for exercising all the Trust’s powers except those reserved for the shareholders. The following tables give information about each Trustee and the senior officers of the Fund. Where required, the tables separately list Trustees who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). Unless otherwise noted, the address of each person listed is 1001 Liberty Avenue, Pittsburgh, PA 15222. The address of all Independent Trustees listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2019, the Trust comprised two portfolio(s), and the Federated Hermes Fund Family consisted of 41 investment companies (comprising 135 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Trustee oversees all portfolios in the Federated Hermes Fund Family and serves for an indefinite term. The Fund’s Statement of Additional Information includes additional information about Trust Trustees and is available, without charge and upon request, by calling 1-800-341-7400.
Interested TRUSTEES Background
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:
January 1990
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.
Annual Shareholder Report
47

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 2016
Principal Occupations: Principal Executive Officer and President of
certain of the Funds in the Federated Hermes Fund Family; Director or
Trustee of certain of the Funds in the Federated Hermes Fund Family;
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.
*
Reasons for “interested” status: J. Christopher Donahue and John B. Fisher are interested due to their beneficial ownership of shares of Federated Hermes, Inc. and due to positions they hold with Federated Hermes, Inc. and its subsidiaries.
INDEPENDENT TRUSTEES Background
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:
October 2013
Principal Occupations: Director or Trustee of the Federated Hermes
Fund Family; formerly, Chairman and CEO, The Collins Group, Inc.
(a private equity firm) (Retired).
Other Directorships Held: Chairman of the Board of Directors,
Director, and Chairman of the Compensation Committee, 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).
Annual Shareholder Report
48

Name
Birth Date
Positions Held with Trust
Date Service Began
Principal Occupation(s) for Past Five Years,
Other Directorships Held, Previous Position(s) and Qualifications
G. Thomas Hough
Birth Date: February 28, 1955
Trustee
Indefinite Term
Began serving: August 2015
Principal Occupations: Director or Trustee, 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.; Director, Member of the Audit Committee, 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: August 2009
Principal Occupations: Director or Trustee of the Federated Hermes
Fund Family; Adjunct Professor 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; Director and Vice Chair, Our Campaign
for the Church Alive!, Inc.; 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; and Director
and Chair, North Catholic High School, Inc.
Annual Shareholder Report
49

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
Charles F. Mansfield, Jr.
Birth Date: April 10, 1945
Trustee
Indefinite Term
Began serving: January 1999
Principal Occupations: Director or Trustee of the Federated Hermes
Fund Family; Management Consultant and Author.
Other Directorships Held: None.
Qualifications: Mr. Mansfield has served as a Marine Corps officer and
in several banking, business management, educational roles and
directorship positions throughout his long career. He remains active as
a Management Consultant and Author.
Thomas M. O’Neill
Birth Date: June 14, 1951
Trustee
Indefinite Term
Began serving: August 2006
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 and
Director, The Golisano Children’s Museum of Naples, Florida.
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); 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; Senior Vice President for Legal Affairs, General Counsel
and Secretary of the Board of Trustees, Duquesne University.
Other Directorships Held: None.
Qualifications: Ms. Reilly has served in various business and legal
management roles throughout her career. Ms. Reilly previously served
as Director of Risk Management and Associate General Counsel,
Duquesne University. Prior to her work at Duquesne University,
Ms. Reilly served as Assistant General Counsel of Compliance and
Enterprise Risk as well as Senior Counsel of Environment, Health and
Safety, PPG Industries. Ms. Reilly also previously served as Chair of
the Risk Management Committee for Holy Ghost Preparatory School,
Philadelphia and Secretary and Chair of the Governance Committee,
Oakland Catholic High School Board of Trustees, Pittsburgh.
Annual Shareholder Report
50

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:
October 2013
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, CNX Resources
Corporation (formerly known as CONSOL Energy Inc.).
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, CNX Resources Corporation (formerly known
as CONSOL Energy Inc.); 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: January 1999
Principal Occupations: Director or Trustee, and Chair of the Board of
Directors or Trustees, 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).
Annual Shareholder Report
51

OFFICERS
Name
Birth Date
Address
Positions Held with Trust
Date Service Began
Principal Occupation(s) for Past Five Years
and Previous Position(s)
Lori A. Hensler
Birth Date: January 6, 1967
TREASURER
Officer since: April 2013
Principal Occupations: Principal Financial Officer and Treasurer of the
Federated Hermes Fund Family; Senior Vice President, Federated
Administrative Services; Financial and Operations Principal for
Federated Securities Corp.; and Assistant Treasurer, Federated
Investors Trust Company. Ms. Hensler has received the Certified
Public Accountant designation.
Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice
President and Assistant Treasurer, Federated Investors Management
Company; Treasurer, Federated Investors Trust Company; Assistant
Treasurer, Federated Administrative Services, Federated
Administrative Services, Inc., Federated Securities Corp., Edgewood
Services, Inc., Federated Advisory Services Company, Federated
Equity Management Company of Pennsylvania, Federated Global
Investment Management Corp., Federated Investment Counseling,
Federated Investment Management Company, Passport Research,
Ltd., and Federated MDTA, LLC; Financial and Operations Principal for
Federated Securities Corp., Edgewood Services, Inc. and Southpointe
Distribution Services, Inc.
Peter J. Germain
Birth Date:
September 3, 1959
CHIEF LEGAL OFFICER,
SECRETARY and EXECUTIVE
VICE PRESIDENT
Officer since: January 2005
Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary
and Executive Vice President of the Federated Hermes Fund Family.
He is General Counsel, Chief Legal Officer, Secretary and Executive
Vice President, Federated Hermes, Inc.; Trustee and Senior Vice
President, Federated Investors Management Company; Trustee and
President, Federated Administrative Services; Director and President,
Federated Administrative Services, Inc.; Director and Vice President,
Federated Securities Corp.; Director and Secretary, Federated Private
Asset Management, Inc.; Secretary, Federated Shareholder Services
Company; and Secretary, Retirement Plan Service Company of
America. Mr. Germain joined Federated Hermes, Inc. in 1984 and is a
member of the Pennsylvania Bar Association.
Previous Positions: Deputy General Counsel, Special Counsel,
Managing Director of Mutual Fund Services, Federated Hermes, Inc.;
Senior Vice President, Federated Services Company; and Senior
Corporate Counsel, Federated Hermes, Inc.
Stephen Van Meter
Birth Date: June 5, 1975
CHIEF COMPLIANCE
OFFICER AND SENIOR VICE
PRESIDENT
Officer since: July 2015
Principal Occupations: Senior Vice President and Chief Compliance
Officer of the Federated Hermes Fund Family; Vice President and
Chief Compliance Officer of Federated Hermes, Inc. and Chief
Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined
Federated Hermes, Inc. in October 2011. He holds FINRA licenses
under Series 3, 7, 24 and 66.
Previous Positions: Mr. Van Meter previously held the position of
Compliance Operating Officer, Federated Hermes, Inc. Prior to joining
Federated Hermes, Inc., Mr. Van Meter served at the United States
Securities and Exchange Commission in the positions of Senior
Counsel, Office of Chief Counsel, Division of Investment Management
and Senior Counsel, Division of Enforcement.
Annual Shareholder Report
52

Name
Birth Date
Address
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: November 2002
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 Shareholder Report
53

Evaluation and Approval of Advisory Contract–May 2020
Federated Max-Cap Index Fund (the “Fund”)
(EFFECTIVE CLOSE OF BUSINESS ON JUNE 26, 2020, THE FUND’S NAME CHANGED TO FEDERATED HERMES MAX-CAP INDEX FUND)
At its meetings in May 2020 (the “May Meetings”), the Fund’s Board of Trustees (the “Board”), including a majority of those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the investment advisory contract between the Fund and Federated Equity Management Company of Pennsylvania (the “Adviser”) (the “Contract”) for an additional one-year term. The Board’s determination to approve the continuation of the Contract reflects the exercise of its business judgment after considering all of the information and factors believed to be relevant and appropriate on whether to continue the existing arrangements. The information, factors and conclusions that formed the basis for the Board’s approval are summarized below.
Information Received and Review Process
At the request of the Independent Trustees, the Fund’s Chief Compliance Officer (the “CCO”) furnished to the Board in advance of its May Meetings an independent written evaluation presenting on the topics discussed below. The Board considered the CCO’s independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund’s management fee and in determining to approve the continuation of the Contract. The CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees. At the request of the Independent Trustees, the CCO Fee Evaluation Report followed the same general approach and covered the same topics as that of the report that had previously been delivered by the CCO in his capacity as “Senior Officer” prior to the elimination of the Senior Officer position in December 2017.
In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, in the months preceding the May Meetings, the Board requested and reviewed written responses and supporting materials prepared by the Adviser and its affiliates (collectively, “Federated Hermes”) in response to requests posed to Federated Hermes on behalf of the Independent Trustees encompassing a wide variety of topics. The Board also considered such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the Contract, which included detailed information about the Fund and Federated Hermes furnished to the Board at its meetings
Annual Shareholder Report
54

throughout the year and in between regularly scheduled meetings on particular matters as the need arose, as well as information specifically prepared in connection with the approval of the continuation of the Contract that was presented at the May Meetings.
The Board’s consideration of the Contract included review of materials and information covering the following matters, among others: the Adviser’s and sub-adviser’s investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund’s short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, and relative to the Fund’s particular investment program and a group of its peer funds and/or its benchmark, as appropriate) and comments on the reasons for the Fund’s performance; the Fund’s investment objectives; the Fund’s expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to a group of its peer funds), with due regard for contractual or voluntary expense limitations (if any); the use and allocation of brokerage commissions derived from trading the Fund’s portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial and other risks assumed by the Adviser in sponsoring and managing the Fund; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund’s relationship to the other funds advised by Federated Hermes (each, a “Federated Hermes Fund”), which include a comprehensive array of funds with different investment objectives, policies and strategies which are generally available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Hermes Funds and the Federated Hermes’ affiliates that service them (including communications from regulatory agencies), as well as Federated Hermes’ responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Hermes Funds and/or Federated Hermes may be responding to them. In addition, the Board received and considered information furnished by Federated Hermes on the impacts of the coronavirus (COVID-19) outbreak on Federated Hermes generally and the Fund in particular, including, among other information, the current and anticipated impacts on the management, operations and performance of the Fund. The Board noted that its evaluation process is evolutionary and that the criteria considered and the emphasis placed on relevant criteria may change in recognition of changing circumstances in the mutual fund marketplace.
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees in determining to approve the Contract. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser’s fiduciary duty with respect to its receipt of
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compensation from a fund: (1) the nature and quality of the services provided by an adviser to a fund and its shareholders (including the performance of the fund, its benchmark, and comparable funds); (2) an adviser’s cost of providing the services (including the profitability to an adviser of providing advisory services to a fund); (3) the extent to which an adviser may realize “economies of scale” as a fund grows larger and, if such economies of scale exist, whether they have been shared with a fund and its shareholders or the family of funds; (4) any “fall-out” financial benefits that accrue to an adviser because of its relationship with a fund (including research services received from brokers that execute fund trades and any fees paid to affiliates of an adviser for services rendered to a fund); (5) comparative fee and expense structures (including a comparison of fees paid to an adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the adviser for what might be viewed as like services); and (6) the extent of care, conscientiousness and independence with which the fund’s board members perform their duties and their expertise (including whether they are fully informed about all facts the board deems relevant to its consideration of an adviser’s services and fees). The Board noted that the Securities and Exchange Commission (“SEC”) disclosure requirements regarding the basis for a fund board’s approval of the fund’s investment advisory contracts generally align with the factors listed above. The Board was aware of these factors and was guided by them in its review of the Contract to the extent it considered them to be appropriate and relevant, as discussed further below.
The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated Hermes on matters relating to the Federated Hermes Funds. While individual members of the Board may have weighed certain factors differently, the Board’s determination to continue the Contract was based on a comprehensive consideration of all information provided to the Board throughout the year and specifically with respect to the continuation of the Contract. The Independent Trustees were assisted throughout the evaluation process by independent legal counsel. In connection with their deliberations at the May Meetings, the Independent Trustees met separately in executive session with their independent legal counsel and without management present to review the relevant materials and consider their responsibilities under applicable laws. In addition, senior management representatives of Federated Hermes also met with the Independent Trustees and their independent legal counsel to discuss the materials and presentations furnished to the Board at the May Meetings. The Board considered the approval of the Contract for the Fund as part of its consideration of agreements for funds across the Federated Hermes Funds family, but its approvals were made on a fund-by-fund basis.
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Nature, Extent and Quality of Services
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of the Adviser and its affiliates dedicated to the Fund. In this regard, the Board evaluated, among other things, the Adviser’s personnel, experience and track record, as well as the financial resources and overall reputation of Federated Hermes and its willingness to invest in personnel and infrastructure that benefit the Federated Hermes Funds. The Board noted the significant acquisition of Hermes Fund Managers Limited by Federated Hermes in 2018, which has deepened the organization’s investment management expertise and capabilities and expanded the investment process for all of the Federated Hermes Funds to incorporate environmental, social and governance (“ESG”) factors and issuer engagement on ESG matters.
In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and the Adviser’s ability and experience in attracting and retaining qualified personnel to service the Fund. The Board noted the compliance program of the Adviser and the compliance-related resources devoted by the Adviser and its affiliates in support of the Fund’s obligations pursuant to Rule 38a-1 under the Investment Company Act of 1940, including the Adviser’s commitment to respond to rulemaking and other regulatory initiatives of the SEC such as the liquidity risk management program rules. In addition, the Board considered the response by the Adviser to recent market conditions and considered the overall performance of the Adviser in this context. The Fund’s ability to deliver competitive performance when compared to its Performance Peer Group (as defined below) was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund’s investment program. The Adviser’s ability to execute this program was one of the Board’s considerations in reaching a conclusion that the nature, extent and quality of the Adviser’s investment management and related services warrant the continuation of the Contract.
Fund Investment Performance
In evaluating the Fund’s investment performance, the Board considered performance results in light of the Fund’s investment objective, strategies and risks, as disclosed in the Fund’s prospectus. The Board also considered the Fund’s performance in light of the overall recent market conditions. The Board considered detailed investment reports on the Fund’s performance over different time periods that were provided to the Board throughout the year and in connection with the May Meetings and evaluated the Adviser’s analysis of the Fund’s performance for these time periods. The Board also reviewed comparative information regarding the performance of other mutual funds in the category of peer funds selected by Morningstar, Inc. (the “Morningstar”), an independent fund ranking organization (the “Performance Peer Group”), noting the CCO’s view that comparisons to fund peer groups may be helpful,
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though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases there may be differences in the funds’ objectives or investment management techniques, or the costs to implement the funds, even within the same Performance Peer Group.
For the one-year, three-year and five-year periods ended December 31, 2019, the Fund’s performance was above the median of the relevant Performance Peer Group.
Following such evaluation, and full deliberations, the Board concluded that the performance of the Fund supported renewal of the Contract.
Fund Expenses
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board has found the use of such comparisons to be relevant to its deliberations. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund’s total expense ratio (i.e., gross and net advisory fees, administrative fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated Hermes from the category of peer funds selected by Morningstar (the “Expense Peer Group”). The Board received a description of the methodology used to select the Expense Peer Group from the overall Morningstar category. The Board also reviewed comparative information regarding the fees and expenses of the broader group of funds in the overall Morningstar category. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because such comparisons are believed to be more relevant. The Board considered that other mutual funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle, in fact, chosen and maintained by the Fund’s investors. The Board noted that the range of their fees and expenses, therefore, appears to be a relevant indicator of what consumers have found to be reasonable in the marketplace in which the Fund competes.
The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund’s fee rates relative to its Expense Peer Group. In this regard, the Board noted that the contractual advisory fee rate was below the median of the Expense Peer Group and the Board was satisfied that the overall expense structure of the Fund remained competitive.
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For comparison, the Board received and considered information about the fees charged by Federated Hermes for providing advisory services to other types of clients with investment strategies similar to those of the Federated Hermes Funds, including non-mutual fund clients such as institutional separate accounts and third-party unaffiliated mutual funds for which the Adviser or its affiliates serve as sub-adviser. The Board noted the CCO’s conclusion that non-mutual fund clients are inherently different products due to the following differences, among others: (i) different