# EDGAR Filing Document

**Accession Number:** 0000799704
**File Stem:** 0001623632-23-000071
**Filing Date:** 2023-1
**Character Count:** 192255
**Document Hash:** b881a4844eba2b4fb060c931d795dc1e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001623632-23-000071.hdr.sgml**: 20230124

**ACCESSION NUMBER**: 0001623632-23-000071

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 10

**CONFORMED PERIOD OF REPORT**: 20221130

**FILED AS OF DATE**: 20230124

**DATE AS OF CHANGE**: 20230124

**EFFECTIVENESS DATE**: 20230124

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Federated Hermes Equity Income Fund, Inc.
- **CENTRAL INDEX KEY:** 0000799704
- **IRS NUMBER:** 251540492
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-04743
- **FILM NUMBER:** 23547660

**BUSINESS ADDRESS:**
- **STREET 1:** 4000 ERICSSON DRIVE
- **CITY:** WARRENDALE
- **STATE:** PA
- **ZIP:** 15086-7561
- **BUSINESS PHONE:** 8003417400

**MAIL ADDRESS:**
- **STREET 1:** 4000 ERICSSON DRIVE
- **CITY:** WARRENDALE
- **STATE:** PA
- **ZIP:** 15086-7561

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FEDERATED EQUITY INCOME FUND INC
- **DATE OF NAME CHANGE:** 20200616

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FEDERATED HERMES EQUITY INCOME FUND INC
- **DATE OF NAME CHANGE:** 20200615

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FEDERATED EQUITY INCOME FUND INC
- **DATE OF NAME CHANGE:** 19960529

## Series and Classes Contracts Data

### Federated Hermes Equity Income Fund, Inc. (Series ID: S000009101)

| Class ID   | Class Name           | Ticker Symbol   |
|:---|:---|:---|
| C000024716 | Class A Shares       | LEIFX           |
| C000024717 | Class B Shares       | LEIBX           |
| C000024718 | Class C Shares       | LEICX           |
| C000024719 | Class F Shares       | LFEIX           |
| C000114966 | Institutional Shares | LEISX           |
| C000123387 | Class R Shares       | FDERX           |

**United States**

**Securities and Exchange Commission**

**Washington, D.C. 20549**

**Form N-CSR**

**Certified Shareholder Report of Registered Management Investment Companies**

<u>811-4743</u>

(Investment Company Act File Number)

**Federated Hermes Equity Income Fund, Inc.**

_______________________________________________________________

(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: <u>11/30/22</u>

Date of Reporting Period: <u>11/30/22</u>

**Item 1.** **Reports to Stockholders**

**Annual Shareholder Report**

***November 30, 2022***

![](imgc1769d3c1.gif)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| **Share Class** \| Ticker | **A** \| LEIFX | **B** \| LEIBX | **C** \| LEICX |
|  | **F** \| LFEIX | **R** \| FDERX | **Institutional** \| LEISX |

---

------

Federated Hermes Equity Income Fund, Inc.

*Fund Established 1986*

------

Dear Valued Shareholder,

We are pleased to present the Annual Shareholder Report for your fund covering the period from December 1, 2021 through November 30, 2022. This report includes Management's Discussion of Fund Performance, a complete listing of your fund's holdings, performance information and financial statements along with other important fund information.

As a global leader in active, responsible investment management, Federated Hermes is guided by our conviction that responsible investing is the best way to create wealth over the long term. The company provides capabilities across a wide range of asset classes to investors around the world.

In addition, FederatedInvestors.com offers quick and easy access to valuable resources that include timely fund updates, economic and market insights from our investment strategists and financial planning tools. You can also access many of those insights by following us on Twitter (@FederatedHermes) and LinkedIn.

Thank you for investing with us. We hope you find this information useful and look forward to keeping you informed.

Sincerely, <br> ![](donahuechrissigsmall.jpg)

J. Christopher Donahue, President

------

**Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee**

------

**CONTENTS** 

---

| | |
|:---|:---|
| [Management's Discussion of Fund Performance](#xx_a2c5d04f-8861-4847-8cef-73be21134b86_1) | &nbsp;&nbsp; [1](#xx_a2c5d04f-8861-4847-8cef-73be21134b86_1)  |
| [Portfolio of Investments Summary Tables](#xx_cb317ee2-44b2-4a7d-a01d-c5a2ed2137a5_1) | &nbsp;&nbsp; [6](#xx_cb317ee2-44b2-4a7d-a01d-c5a2ed2137a5_1)  |
| [Portfolio of Investments](#xx_cb317ee2-44b2-4a7d-a01d-c5a2ed2137a5_2) | &nbsp;&nbsp; [7](#xx_cb317ee2-44b2-4a7d-a01d-c5a2ed2137a5_2)  |
| [Financial Highlights](#xx_34fa451b-3c93-4b50-83d5-d449d718b8c1_1) | [11](#xx_34fa451b-3c93-4b50-83d5-d449d718b8c1_1)  |
| [Statement of Assets and Liabilities](#xx_fc734612-75a5-4996-9839-cebe304a701b_1) | [17](#xx_fc734612-75a5-4996-9839-cebe304a701b_1)  |
| [Statement of Operations](#xx_fc734612-75a5-4996-9839-cebe304a701b_3) | [19](#xx_fc734612-75a5-4996-9839-cebe304a701b_3)  |
| [Statement of Changes in Net Assets](#xx_fc734612-75a5-4996-9839-cebe304a701b_5) | [21](#xx_fc734612-75a5-4996-9839-cebe304a701b_5)  |
| [Notes to Financial Statements](#xx_095aef2f-8aa3-47bf-8cb7-6b8b56b2150b_1) | [22](#xx_095aef2f-8aa3-47bf-8cb7-6b8b56b2150b_1)  |
| [Report of Independent Registered Public Accounting Firm](#xx_eceaa6f2-2916-4d95-913a-cc1ebed1528b_1) | [35](#xx_eceaa6f2-2916-4d95-913a-cc1ebed1528b_1)  |
| [Shareholder Expense Example](#xx_69989723-e7ed-4c19-af1a-8f2f09dd526a_1) | [37](#xx_69989723-e7ed-4c19-af1a-8f2f09dd526a_1)  |
| [Board of Directors and Corporation Officers](#xx_315be903-d106-4119-a5ea-13542240b76f_1) | [39](#xx_315be903-d106-4119-a5ea-13542240b76f_1)  |
| [Evaluation and Approval of Advisory Contract](#xx_46048270-a036-45d1-b5d2-1e813b85a99c_1) | [46](#xx_46048270-a036-45d1-b5d2-1e813b85a99c_1)  |
| [Liquidity Risk Management Program](#xx_18f86360-a6b2-4711-b3da-a3a3a5979de8_1)[–](#xx_18f86360-a6b2-4711-b3da-a3a3a5979de8_1)<br> [Annual Evaluation of Adequacy and Effectiveness](#xx_18f86360-a6b2-4711-b3da-a3a3a5979de8_1)<br>| [56](#xx_18f86360-a6b2-4711-b3da-a3a3a5979de8_1)  |
| [Voting Proxies on Fund Portfolio Securities](#xx_b2e8b3ac-d806-4b1d-a3f2-999c9df7dd97_1) | [58](#xx_b2e8b3ac-d806-4b1d-a3f2-999c9df7dd97_1)  |
| [Quarterly Portfolio Schedule](#xx_b2e8b3ac-d806-4b1d-a3f2-999c9df7dd97_1) | [58](#xx_b2e8b3ac-d806-4b1d-a3f2-999c9df7dd97_1) |

---

------

Management's Discussion of Fund Performance (unaudited)

The total return of Federated Hermes Equity Income Fund, Inc. (the "Fund"), based on net asset value for the 12-month reporting period ended November 30, 2022, was 0.01% for Class A Shares, -0.78% for Class B Shares, -0.78% for Class C Shares, -0.28% for Class F Shares, -0.17% for Class R Shares and 0.24% for Institutional Shares. The 0.24% total return of the Institutional Shares for the reporting period consisted of -0.41% in price depreciation and 0.65% in reinvested dividends. The total return of the Russell 1000<sup>®</sup> Value Index (R1000V),<sup>1</sup> a broad-based securities market index, was 2.42% for the same period. The total return of the Morningstar Large Value Funds Average (MLVFA),<sup>2</sup> a peer group average for the Fund, was 4.30% during the same period. The Fund's and MLVFA's total returns for the most recently completed fiscal year reflected actual cash flows, transaction costs and expenses which were not reflected in the total return of the R1000V.

The Fund's investment strategy focused primarily on stocks of dividend-paying companies<sup>3</sup> with favorable valuations, strong balance sheets and improving business fundamentals in order to pursue the Fund's objective of providing above average income and capital appreciation. The Fund's portfolio managers focused on realization of the Fund's total return and income objectives by purchasing and holding primarily income-producing equity securities with favorable valuation levels. During the reporting period, the most significant factors affecting the Fund's performance relative to the R1000V were sector allocation and security selection.

The following discussion will focus on the performance of the Fund's Institutional Shares relative to the R1000V.

**MARKET OVERVIEW**

Equity markets had a strong finish in 2021 due in part due to better-than-expected earnings and a Christmas rally. This positive momentum was short-lived as a new Covid-19 strain, Omicron, slowed consumer spending, and Russia's invasion of Ukraine disrupted the markets at the beginning of 2022. During the next two quarters, concerns over inflation, slowing economic growth, continued geopolitical tensions and a quickened pace of the Federal Reserve's (the "Fed") rate hikes that may lead the economy into a recession, resulted in further market volatility and negative returns across most asset classes. For the reporting period, value stocks outperformed growth stocks, and large value stocks were the best performing equity style. The S&P 500 Index<sup>4</sup> (S&P 500) returned -9.21%, and the R1000V returned 2.42% for the reporting period. Strong performance in the Energy sector dominated relatively weaker performance in the Communication Services sector across the S&P 500 sectors during the reporting period.

Annual Shareholder Report

**1**

------

The emergence of the highest U.S. inflation in over 40 years drove the U.S. Treasury yields sharply higher over the reporting period. The Fed had incorrectly dismissed the rising inflation to transitory factors during much of 2021, keeping their policy rates near zero to support the ongoing expansion of the U.S. economy. While the U.S. economy expanded slowly and the unemployment rate declined, the rate of inflation increased rapidly. In response, the Fed tightened monetary policy by raising the upper bound of the federal funds target range from 0.25%, where it stood for the first half of the reporting period, to 4.00% by November 2022. The yield on the 10-year U.S. Treasury ended the reporting period at 3.61%, up over 200 basis points (bps). Yields on 2-year, 10-year and 30-year Treasury securities increased 375 bps, 216 bps and 195 bps, respectively, over the reporting period.

**Sector Allocation and security selection**

During the reporting period, sector allocation contributed positively to Fund performance but was more than fully offset by negative stock selection relative to the R1000V. An overweight allocation in the Energy sector and underweight positions in the Communication Services and Consumer Discretionary sectors contributed positively to overall Fund performance but was partially offset by an overweight allocation in the Information Technology sector relative to the R1000V. Stock selection in the Financials and REITs sectors had a positive impact on the Fund's performance but was more than fully offset by negative stock selection in the Communication Services, Industrials and Health Care sectors relative to the R1000V.

*Please see the footnotes to the line graph under "Fund Performance and Growth of a $10,000 Investment" below for the definition of, and more information about, the R1000V.*

*Please see the footnotes to the line graph under "Fund Performance and Growth of a $10,000 Investment" below for the definition of, and more information about, the Morningstar peer group.*

*There are no guarantees that dividend-paying stocks will continue to pay dividends. In addition, dividend-paying stocks may not experience the same capital appreciation potential as non-dividend paying stocks.*

*The S&P 500 is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.\**

\*

*The index is unmanaged, and it is not possible to invest directly in an index.*

Annual Shareholder Report

**2**

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**FUND PERFORMANCE AND GROWTH OF A $10,000 INVESTMENT**

The graph below illustrates the hypothetical investment of $10,000<sup>1</sup> in the Federated Hermes Equity Income Fund, Inc. (the "Fund") from November 30, 2012 to November 30, 2022, compared to the Russell 1000<sup>®</sup> Value Index (R1000V)<sup>2</sup> and the Morningstar Large Value Funds Average (MLVFA).<sup>3</sup> 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 November 30, 2022** <br> ![](feifar8042506.jpg)

◾ Total returns shown for Class A Shares include the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450).

◾ The returns shown for Class B Shares include the maximum contingent deferred sales charge of 5.50% 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.

Annual Shareholder Report

**3**

------

**Average Annual Total Returns for the Period Ended 11/30/2022**

*(returns reflect all applicable sales charges and contingent deferred sales charges as specified below in footnote #1)* 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Years** | **10 Years** |
| **Class A Shares** | -5.50% | 4.76% | &nbsp;&nbsp; 7.93% |
| **Class B Shares** | -5.48% | 4.82% | &nbsp;&nbsp; 7.85% |
| **Class C Shares** | -1.63% | 5.15% | &nbsp;&nbsp; 7.88% |
| **Class F Shares** | -2.13% | 5.48% | &nbsp;&nbsp; 8.16% |
| **Class R Shares**<sup>4</sup> | -0.17% | 5.77% | &nbsp;&nbsp; 8.36% |
| **Institutional Shares** | 0.24% | 6.21% | &nbsp;&nbsp; 8.81% |
| R1000V | 2.42% | 7.86% | 10.97% |
| MLVFA | 4.30% | 8.26% | 10.84% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**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.** 

Annual Shareholder Report

**4**

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*Represents a hypothetical investment of $10,000 in the Fund after deducting applicable sales charges: For Class A Shares, the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450); for Class B Shares, the maximum contingent deferred sales charge is 5.50% on any redemption less than one year from the purchase date; 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; for Class F Shares, the maximum sales charge of 1.00% ($10,000 investment minus $100 sales charge = $9,900) and a contingent deferred sales charge of 1.00% on any redemption less than four years from the purchase date. The Fund's performance assumes the reinvestment of all dividends and distributions. R1000V has been adjusted to reflect reinvestment of dividends on securities in the index.*

*The R1000V measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000*<sup>®</sup> *Index companies with lower price-to-book ratios and lower expected growth values. The R1000V is constructed to provide a comprehensive and unbiased barometer for the large-cap value segment. The R1000V is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect value characteristics. The R1000V is not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission (SEC) requires to be reflected in the Fund's performance. The index is unmanaged and unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.*

*Morningstar figures represent the average of the total returns reported by all the funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. The Morningstar figures in the Growth of a $10,000 Investment line graph are based on historical return information published by Morningstar and reflect the return of the funds comprising the category in the year of publication. Because the funds designated by Morningstar as falling into the category can change over time, the Morningstar figures in the line graph may not match the Morningstar figures in the Average Annual Total Returns table, which reflect the return of the funds that currently comprise the category.*

*The Fund's Class R Shares commenced operations on January 25, 2013. For the period prior to the commencement of operations of Class R Shares, the performance information shown is for Class A Shares, adjusted to reflect the expenses of Class R Shares for each year for which Class R Shares expenses would have exceeded the actual expenses paid by Class A Shares. Additionally, the performance information shown has been adjusted to reflect the absence of sales charges applicable to Class A Shares.*

Annual Shareholder Report

**5**

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Portfolio of Investments Summary Tables (unaudited)

At November 30, 2022, the Fund's portfolio composition<sup>1</sup> was as follows:

---

| | |
|:---|:---|
| **Security Type** | **Percentage of** <br>**Total Net Assets**<br>|
| Domestic Equity Securities | 95.6% |
| International Equity Securities | &nbsp;&nbsp; 1.7% |
| Cash Equivalents<sup>2</sup> <br>| &nbsp;&nbsp; 2.7% |
| Other Assets and Liabilities—Net<sup>3,4</sup> <br>| (0.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp; TOTAL | **100%** |

---

At November 30, 2022, the Fund's sector composition<sup>5</sup> of the Fund's equity holdings was as follows:

---

| | |
|:---|:---|
| **Sector Composition** <br>**of Equity Holdings**<br>| **Percentage of** <br>**Equity Securities**<br>|
| Health Care | 19.0% |
| Financials | 16.1% |
| Industrials | 11.6% |
| Energy | &nbsp;&nbsp; 9.5% |
| Consumer Staples | &nbsp;&nbsp; 9.3% |
| Information Technology | &nbsp;&nbsp; 8.4% |
| Consumer Discretionary | &nbsp;&nbsp; 7.0% |
| Communication Services | &nbsp;&nbsp; 5.4% |
| Materials | &nbsp;&nbsp; 5.3% |
| Utilities | &nbsp;&nbsp; 4.3% |
| Real Estate | &nbsp;&nbsp; 4.1% |
| &nbsp;&nbsp;&nbsp;&nbsp; TOTAL | **100%** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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| | |
|:---|:---|
| 1 | *See the Fund's Prospectus for a description of the principal types of securities in which the Fund* <br> *invests.*<br>|
| 2 | *Cash Equivalents include any investments in money market mutual funds and/or overnight* <br> *repurchase agreements.*<br>|
| 3 | *Assets, other than investments in securities, less liabilities. See Statement of Assets and* <br> *Liabilities.*<br>|
| 4 | *Represents less than 0.1%.* |
| 5 | *Sector classifications are based upon, and individual portfolio securities are assigned to, the* <br> *classifications of the Global Industry Classification Standard (GICS) except that the Adviser* <br> *assigns a classification to securities not classified by the GICS and to securities for which the* <br> *Adviser does not have access to the classification made by the GICS.*<br>|

---

Annual Shareholder Report

**6**

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Portfolio of Investments

November 30, 2022

---

| | | |
|:---|:---|:---|
| **Shares** |  | **Value** |
|  | COMMON STOCKS— 97.3% |  |
|  | **Communication Services— 5.3%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 139026<br><sup>1</sup> <br>| Alphabet, Inc., Class A | $14040236 |
| &nbsp;&nbsp;&nbsp;&nbsp; 398424 | Comcast Corp., Class A | 14598255 |
| &nbsp;&nbsp;&nbsp;&nbsp; 355282 | Verizon Communications, Inc. | 13848892 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; TOTAL | &nbsp;&nbsp;&nbsp; 42487383 |
|  | **Consumer Discretionary— 6.8%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 469324 | General Motors Co. | 19035781 |
| &nbsp;&nbsp;&nbsp;&nbsp; 24747 | Home Depot, Inc. | 8017781 |
| &nbsp;&nbsp;&nbsp;&nbsp; 259840 | KB HOME | 8156378 |
| &nbsp;&nbsp;&nbsp;&nbsp; 26086 | McDonald's Corp. | 7116000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 24805 | Target Corp. | 4144171 |
| &nbsp;&nbsp;&nbsp;&nbsp; 103077 | TJX Cos., Inc. | 8251314 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; TOTAL | &nbsp;&nbsp;&nbsp; 54721425 |
|  | **Consumer Staples— 9.0%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 175406 | Altria Group, Inc. | 8170411 |
| &nbsp;&nbsp;&nbsp;&nbsp; 69953 | Constellation Brands, Inc., Class A | 18002405 |
| &nbsp;&nbsp;&nbsp;&nbsp; 35466 | Estee Lauder Cos., Inc., Class A | 8362528 |
| &nbsp;&nbsp;&nbsp;&nbsp; 134701 | Kraft Heinz Co./The | 5300484 |
| &nbsp;&nbsp;&nbsp;&nbsp; 33576 | Procter & Gamble Co. | 5008196 |
| &nbsp;&nbsp;&nbsp;&nbsp; 187474 | The Coca-Cola Co. | 11925221 |
| &nbsp;&nbsp;&nbsp;&nbsp; 105199 | WalMart, Inc. | 16034432 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; TOTAL | &nbsp;&nbsp;&nbsp; 72803677 |
|  | **Energy— 9.3%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 106815 | Chevron Corp. | 19580258 |
| &nbsp;&nbsp;&nbsp;&nbsp; 148903 | ConocoPhillips | 18391009 |
| &nbsp;&nbsp;&nbsp;&nbsp; 292234 | Exxon Mobil Corp. | 32537334 |
| &nbsp;&nbsp;&nbsp;&nbsp; 18110 | Pioneer Natural Resources, Inc. | 4273779 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; TOTAL | &nbsp;&nbsp;&nbsp; 74782380 |
|  | **Financials— 15.7%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 88253 | Allstate Corp. | 11817077 |
| &nbsp;&nbsp;&nbsp;&nbsp; 503644 | Bank of America Corp. | 19062925 |
| &nbsp;&nbsp;&nbsp;&nbsp; 59748<br><sup>1</sup> <br>| Berkshire Hathaway, Inc., Class B | 19035713 |
| &nbsp;&nbsp;&nbsp;&nbsp; 362290 | Fifth Third Bancorp | 13172864 |
| &nbsp;&nbsp;&nbsp;&nbsp; 62616 | JPMorgan Chase & Co. | 8652279 |
| &nbsp;&nbsp;&nbsp;&nbsp; 20330 | LPL Financial Holdings, Inc. | 4812314 |
| &nbsp;&nbsp;&nbsp;&nbsp; 95568 | Raymond James Financial, Inc. | 11171899 |
| &nbsp;&nbsp;&nbsp;&nbsp; 229004 | The Hartford Financial Services Group, Inc. | 17489036 |

---

Annual Shareholder Report

**7**

------

---

| | | |
|:---|:---|:---|
| **Shares** |  | **Value** |
|  | COMMON STOCKS— continued |  |
|  | **Financials— continued** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 439325 | Wells Fargo & Co. | $21065634 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 126279741 |
|  | **Health Care— 18.5%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 288137<br><sup>1</sup> <br>| Avantor, Inc. | 6419692 |
| &nbsp;&nbsp;&nbsp;&nbsp; 46164 | Danaher Corp. | 12621699 |
| &nbsp;&nbsp;&nbsp;&nbsp; 59235<br><sup>1</sup> <br>| Horizon Therapeutics PLC | 5940678 |
| &nbsp;&nbsp;&nbsp;&nbsp; 155727 | Johnson & Johnson | 27719406 |
| &nbsp;&nbsp;&nbsp;&nbsp; 29695 | McKesson Corp. | 11333988 |
| &nbsp;&nbsp;&nbsp;&nbsp; 124917 | Medtronic PLC | 9873440 |
| &nbsp;&nbsp;&nbsp;&nbsp; 140219 | Merck & Co., Inc. | 15440916 |
| &nbsp;&nbsp;&nbsp;&nbsp; 348880 | Pfizer, Inc. | 17489355 |
| &nbsp;&nbsp;&nbsp;&nbsp; 228196<br><sup>1</sup> <br>| Tenet Healthcare Corp. | 10538091 |
| &nbsp;&nbsp;&nbsp;&nbsp; 32753 | UnitedHealth Group, Inc. | 17940783 |
| &nbsp;&nbsp;&nbsp;&nbsp; 110259 | Zimmer Biomet Holdings, Inc. | 13242106 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 148560154 |
|  | **Industrials— 11.2%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 72923 | Eaton Corp. PLC | 11919264 |
| &nbsp;&nbsp;&nbsp;&nbsp; 77419 | FedEx Corp. | 14107290 |
| &nbsp;&nbsp;&nbsp;&nbsp; 99510 | Honeywell International, Inc. | 21847421 |
| &nbsp;&nbsp;&nbsp;&nbsp; 53290 | Jacobs Solutions, Inc. | 6743317 |
| &nbsp;&nbsp;&nbsp;&nbsp; 224658 | Johnson Controls International PLC | 14926278 |
| &nbsp;&nbsp;&nbsp;&nbsp; 121346 | Stanley Black & Decker, Inc. | 9916395 |
| &nbsp;&nbsp;&nbsp;&nbsp; 31209<br><sup>1</sup> <br>| United Rentals, Inc. | 11017713 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; TOTAL | &nbsp;&nbsp;&nbsp; 90477678 |
|  | **Information Technology— 8.1%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 288103 | Cisco Systems, Inc. | 14324481 |
| &nbsp;&nbsp;&nbsp;&nbsp; 74689 | Global Payments, Inc. | 7751225 |
| &nbsp;&nbsp;&nbsp;&nbsp; 143354 | Microchip Technology, Inc. | 11352203 |
| &nbsp;&nbsp;&nbsp;&nbsp; 38449 | Microsoft Corp. | 9809878 |
| &nbsp;&nbsp;&nbsp;&nbsp; 24626 | MKS Instruments, Inc. | 2065136 |
| &nbsp;&nbsp;&nbsp;&nbsp; 74480 | Motorola, Solutions, Inc. | 20273456 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; TOTAL | &nbsp;&nbsp;&nbsp; 65576379 |
|  | **Materials— 5.2%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 262153 | Freeport-McMoRan, Inc. | 10433689 |
| &nbsp;&nbsp;&nbsp;&nbsp; 40019 | Linde PLC | 13465593 |
| &nbsp;&nbsp;&nbsp;&nbsp; 97057 | Vulcan Materials Co. | 17793460 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; TOTAL | &nbsp;&nbsp;&nbsp; 41692742 |
|  | **Real Estate— 4.0%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 41599 | American Tower Corp. | 9203779 |
| &nbsp;&nbsp;&nbsp;&nbsp; 176207 | National Retail Properties, Inc. | 8168956 |
| &nbsp;&nbsp;&nbsp;&nbsp; 66153 | ProLogis, Inc. | 7792162 |

---

Annual Shareholder Report

**8**

------

---

| | | |
|:---|:---|:---|
| **Shares** |  | **Value** |
|  | COMMON STOCKS— continued |  |
|  | **Real Estate— continued** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 565282 | RLJ Lodging Trust | $6851218 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; TOTAL | &nbsp;&nbsp;&nbsp; 32016115 |
|  | **Utilities— 4.2%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 509117 | CenterPoint Energy, Inc. | 15838630 |
| &nbsp;&nbsp;&nbsp;&nbsp; 83497 | Dominion Energy, Inc. | 5102502 |
| &nbsp;&nbsp;&nbsp;&nbsp; 153562 | NextEra Energy, Inc. | 13006701 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; TOTAL | &nbsp;&nbsp;&nbsp; 33947833 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; TOTAL COMMON STOCKS <br>(IDENTIFIED COST $672,226,368)<br>| 783345507 |
|  | INVESTMENT COMPANY— 2.7% |  |
| 21799623 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional <br> Shares, 3.86%<sup>2</sup> <br>(IDENTIFIED COST $21,788,554)<br>| $21790903 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; TOTAL INVESTMENT IN SECURITIES—100.0% <br>(IDENTIFIED COST $694,014,922)<sup>3</sup> <br>| 805136410 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; OTHER ASSETS AND LIABILITIES - NET—(0.0)%<sup>4</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (293454) |
|  | &nbsp;&nbsp;&nbsp;&nbsp; TOTAL NET ASSETS—100% | $804842956 |

---

Affiliated fund holdings are investment companies which are managed by the Adviser or an affiliate of the Adviser. Transactions with affiliated fund holdings during the period ended November 30, 2022, were as follows:

---

| | |
|:---|:---|
|  | **Federated** <br>**Hermes** <br>**Institutional** <br>**Prime Value** <br>**Obligations Fund,** <br>**Institutional Shares**<br>|
| Value as of 11/30/2021 | $22719167 |
| Purchases at Cost | $258208687 |
| Proceeds from Sales | $(259122619) |
| Change in Unrealized Appreciation/Depreciation | $3302 |
| Net Realized Gain/(Loss) | $(17634) |
| Value as of 11/30/2022 | $21790903 |
| Shares Held as of 11/30/2022 | &nbsp;&nbsp;&nbsp;&nbsp; 21799623 |
| Dividend Income | $280791 |
| Gain Distributions Received | $3398 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| 1 | *Non-income-producing security.* |
| 2 | *7-day net yield.* |
| 3 | *The cost of investments for federal tax purposes amounts to $698,872,953.* |
| 4 | *Assets, other than investments in securities, less liabilities. See Statement of Assets and* <br> *Liabilities.*<br>|

---

Note: The categories of investments are shown as a percentage of total net assets at November 30, 2022.

Annual Shareholder Report

**9**

------

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.

At November 30, 2022, all investments of the Fund utilized Level 1 inputs in valuing the Fund's assets carried at fair value.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

**10**

------

Financial Highlights–Class A Shares

(For a Share Outstanding Throughout Each Period)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | **$26.60** | **$22.35** | **$21.57** | **$24.48** | **$25.85** |
| **Income From Investment Operations:** |  |  |  |  |  |
| Net investment income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.27<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.25<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.28<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.44<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.43 |
| Net realized and unrealized gain (loss) | &nbsp;&nbsp;&nbsp;&nbsp; (0.11) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.24 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.78 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.28 | &nbsp;&nbsp;&nbsp;&nbsp; (0.52) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total From Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.16 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.49 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.06 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.72 | &nbsp;&nbsp;&nbsp;&nbsp; (0.09) |
| **Less Distributions:** |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp;&nbsp;&nbsp; (0.29) | &nbsp;&nbsp;&nbsp;&nbsp; (0.24) | &nbsp;&nbsp;&nbsp;&nbsp; (0.28) | &nbsp;&nbsp;&nbsp;&nbsp; (0.45) | &nbsp;&nbsp;&nbsp;&nbsp; (0.43) |
| Distributions from net realized gain | &nbsp;&nbsp;&nbsp;&nbsp; (3.71) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; (3.18) | &nbsp;&nbsp;&nbsp;&nbsp; (0.85) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp; (4.00) | &nbsp;&nbsp;&nbsp;&nbsp; (0.24) | &nbsp;&nbsp;&nbsp;&nbsp; (0.28) | &nbsp;&nbsp;&nbsp;&nbsp; (3.63) | &nbsp;&nbsp;&nbsp;&nbsp; (1.28) |
| **Net Asset Value, End of Period** | **$22.76** | **$26.60** | **$22.35** | **$21.57** | **$24.48** |
| **Total Return**<sup>2</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.01% | &nbsp;&nbsp;&nbsp;&nbsp; 20.14% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.06% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.34% | &nbsp;&nbsp;&nbsp;&nbsp; (0.47)% |
| **Ratios to Average Net Assets:** |  |  |  |  |  |
| Net expenses<sup>3</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.11% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.11% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.11% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.13% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.12% |
| Net investment income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.18% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.97% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.39% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.12% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.70% |
| Expense waiver/reimbursement<sup>4</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.01% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.03% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>|
| **Supplemental Data:** |  |  |  |  |  |
| Net assets, end of period (000 omitted) | $681158 | $744115 | $674622 | $725715 | $785283 |
| Portfolio turnover<sup>6</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 90% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 77% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 95% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 97% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 133% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| 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* <br> *deferred sales charge, if applicable.*<br>|
| 3 | *Amount does not reflect net expenses incurred by investment companies in which the Fund* <br> *may invest.*<br>|
| 4 | *This expense decrease is reflected in both the net expense and the net investment income ratios* <br> *shown above. Amount does not reflect expense waiver/reimbursement recorded by investment* <br> *companies in which the Fund may invest.*<br>|
| 5 | *Represents less than 0.01%.* |
| 6 | *Securities that mature are considered sales for purposes of this calculation.* |

---

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

**11**

------

Financial Highlights–Class B Shares

(For a Share Outstanding Throughout Each Period)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | **$26.40** | **$22.25** | **$21.48** | **$24.40** | **$25.77** |
| **Income From Investment Operations:** |  |  |  |  |  |
| Net investment income (loss) | &nbsp;&nbsp;&nbsp; 0.08<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp; 0.04<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.12<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.26<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.23 |
| Net realized and unrealized gain (loss) | &nbsp;&nbsp;&nbsp; (0.10) | &nbsp;&nbsp;&nbsp; 4.22 | &nbsp;&nbsp;&nbsp;&nbsp; 0.77 | &nbsp;&nbsp;&nbsp;&nbsp; 0.28 | &nbsp;&nbsp;&nbsp; (0.52) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total From Investment Operations | &nbsp;&nbsp;&nbsp; (0.02) | &nbsp;&nbsp;&nbsp; 4.26 | &nbsp;&nbsp;&nbsp;&nbsp; 0.89 | &nbsp;&nbsp;&nbsp;&nbsp; 0.54 | &nbsp;&nbsp;&nbsp; (0.29) |
| **Less Distributions:** |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp;&nbsp; (0.14) | &nbsp;&nbsp;&nbsp; (0.11) | &nbsp;&nbsp;&nbsp; (0.12) | &nbsp;&nbsp;&nbsp; (0.28) | &nbsp;&nbsp;&nbsp; (0.23) |
| Distributions from net realized gain | &nbsp;&nbsp;&nbsp; (3.71) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (3.18) | &nbsp;&nbsp;&nbsp; (0.85) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Distributions | &nbsp;&nbsp;&nbsp; (3.85) | &nbsp;&nbsp;&nbsp; (0.11) | &nbsp;&nbsp;&nbsp; (0.12) | &nbsp;&nbsp;&nbsp; (3.46) | &nbsp;&nbsp;&nbsp; (1.08) |
| **Net Asset Value, End of Period** | **$22.53** | **$26.40** | **$22.25** | **$21.48** | **$24.40** |
| **Total Return**<sup>2</sup> <br>| &nbsp;&nbsp;&nbsp; (0.78)% | &nbsp;&nbsp; 19.17% | &nbsp;&nbsp;&nbsp;&nbsp; 4.20% | &nbsp;&nbsp;&nbsp;&nbsp; 5.46% | &nbsp;&nbsp;&nbsp; (1.26)% |
| **Ratios to Average Net Assets:** |  |  |  |  |  |
| Net expenses<sup>3</sup> <br>| &nbsp;&nbsp;&nbsp; 1.91% | &nbsp;&nbsp;&nbsp; 1.91% | &nbsp;&nbsp;&nbsp;&nbsp; 1.95% | &nbsp;&nbsp;&nbsp;&nbsp; 1.93% | &nbsp;&nbsp;&nbsp;&nbsp; 1.91% |
| Net investment income | &nbsp;&nbsp;&nbsp; 0.33% | &nbsp;&nbsp;&nbsp; 0.16% | &nbsp;&nbsp;&nbsp;&nbsp; 0.59% | &nbsp;&nbsp;&nbsp;&nbsp; 1.28% | &nbsp;&nbsp;&nbsp;&nbsp; 0.89% |
| Expense waiver/reimbursement<sup>4</sup> <br>| &nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>| &nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.01% | &nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>|
| **Supplemental Data:** |  |  |  |  |  |
| Net assets, end of period (000 omitted) | $4309 | $8157 | $12125 | $19520 | $29846 |
| Portfolio turnover<sup>6</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 90% | &nbsp;&nbsp;&nbsp;&nbsp; 77% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 95% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 97% | &nbsp;&nbsp;&nbsp;&nbsp; 133% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| 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* <br> *deferred sales charge, if applicable.*<br>|
| 3 | *Amount does not reflect net expenses incurred by investment companies in which the Fund* <br> *may invest.*<br>|
| 4 | *This expense decrease is reflected in both the net expense and the net investment income ratios* <br> *shown above. Amount does not reflect expense waiver/reimbursement recorded by investment* <br> *companies in which the Fund may invest.*<br>|
| 5 | *Represents less than 0.01%.* |
| 6 | *Securities that mature are considered sales for purposes of this calculation.* |

---

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

**12**

------

Financial Highlights–Class C Shares

(For a Share Outstanding Throughout Each Period)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | **$26.47** | **$22.30** | **$21.52** | **$24.44** | **$25.81** |
| **Income From Investment Operations:** |  |  |  |  |  |
| Net investment income (loss) | &nbsp;&nbsp;&nbsp;&nbsp; 0.09<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.05<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.12<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.28<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.23 |
| Net realized and unrealized gain (loss) | &nbsp;&nbsp;&nbsp; (0.11) | &nbsp;&nbsp;&nbsp;&nbsp; 4.23 | &nbsp;&nbsp;&nbsp;&nbsp; 0.79 | &nbsp;&nbsp;&nbsp;&nbsp; 0.28 | &nbsp;&nbsp;&nbsp; (0.52) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total From Investment Operations | &nbsp;&nbsp;&nbsp; (0.02) | &nbsp;&nbsp;&nbsp;&nbsp; 4.28 | &nbsp;&nbsp;&nbsp;&nbsp; 0.91 | &nbsp;&nbsp;&nbsp;&nbsp; 0.56 | &nbsp;&nbsp;&nbsp; (0.29) |
| **Less Distributions:** |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp;&nbsp; (0.14) | &nbsp;&nbsp;&nbsp; (0.11) | &nbsp;&nbsp;&nbsp; (0.13) | &nbsp;&nbsp;&nbsp; (0.30) | &nbsp;&nbsp;&nbsp; (0.23) |
| Distributions from net realized gain | &nbsp;&nbsp;&nbsp; (3.71) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (3.18) | &nbsp;&nbsp;&nbsp; (0.85) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Distributions | &nbsp;&nbsp;&nbsp; (3.85) | &nbsp;&nbsp;&nbsp; (0.11) | &nbsp;&nbsp;&nbsp; (0.13) | &nbsp;&nbsp;&nbsp; (3.48) | &nbsp;&nbsp;&nbsp; (1.08) |
| **Net Asset Value, End of Period** | **$22.60** | **$26.47** | **$22.30** | **$21.52** | **$24.44** |
| **Total Return**<sup>2</sup> <br>| &nbsp;&nbsp;&nbsp; (0.78)% | &nbsp;&nbsp;&nbsp; 19.23% | &nbsp;&nbsp;&nbsp;&nbsp; 4.27% | &nbsp;&nbsp;&nbsp;&nbsp; 5.51% | &nbsp;&nbsp;&nbsp; (1.25)% |
| **Ratios to Average Net Assets:** |  |  |  |  |  |
| Net expenses<sup>3</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 1.89% | &nbsp;&nbsp;&nbsp;&nbsp; 1.87% | &nbsp;&nbsp;&nbsp;&nbsp; 1.91% | &nbsp;&nbsp;&nbsp;&nbsp; 1.87% | &nbsp;&nbsp;&nbsp;&nbsp; 1.88% |
| Net investment income | &nbsp;&nbsp;&nbsp;&nbsp; 0.39% | &nbsp;&nbsp;&nbsp;&nbsp; 0.19% | &nbsp;&nbsp;&nbsp;&nbsp; 0.61% | &nbsp;&nbsp;&nbsp;&nbsp; 1.36% | &nbsp;&nbsp;&nbsp;&nbsp; 0.91% |
| Expense waiver/reimbursement<sup>4</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.01% | &nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>|
| **Supplemental Data:** |  |  |  |  |  |
| Net assets, end of period (000 omitted) | $14915 | $18179 | $20748 | $25888 | $33925 |
| Portfolio turnover<sup>6</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 90% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 77% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 95% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 97% | &nbsp;&nbsp;&nbsp;&nbsp; 133% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| 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* <br> *deferred sales charge, if applicable.*<br>|
| 3 | *Amount does not reflect net expenses incurred by investment companies in which the Fund* <br> *may invest.*<br>|
| 4 | *This expense decrease is reflected in both the net expense and the net investment income ratios* <br> *shown above. Amount does not reflect expense waiver/reimbursement recorded by investment* <br> *companies in which the Fund may invest.*<br>|
| 5 | *Represents less than 0.01%.* |
| 6 | *Securities that mature are considered sales for purposes of this calculation.* |

---

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

**13**

------

Financial Highlights–Class F Shares

(For a Share Outstanding Throughout Each Period)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | **$26.62** | **$22.37** | **$21.58** | **$24.50** | **$25.87** |
| **Income From Investment Operations:** |  |  |  |  |  |
| Net investment income (loss) | &nbsp;&nbsp;&nbsp;&nbsp; 0.21<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.19<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.22<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.38<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.37 |
| Net realized and unrealized gain (loss) | &nbsp;&nbsp;&nbsp; (0.12) | &nbsp;&nbsp;&nbsp;&nbsp; 4.24 | &nbsp;&nbsp;&nbsp;&nbsp; 0.79 | &nbsp;&nbsp;&nbsp;&nbsp; 0.28 | &nbsp;&nbsp;&nbsp; (0.52) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total From Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp; 0.09 | &nbsp;&nbsp;&nbsp;&nbsp; 4.43 | &nbsp;&nbsp;&nbsp;&nbsp; 1.01 | &nbsp;&nbsp;&nbsp;&nbsp; 0.66 | &nbsp;&nbsp;&nbsp; (0.15) |
| **Less Distributions:** |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp;&nbsp; (0.23) | &nbsp;&nbsp;&nbsp; (0.18) | &nbsp;&nbsp;&nbsp; (0.22) | &nbsp;&nbsp;&nbsp; (0.40) | &nbsp;&nbsp;&nbsp; (0.37) |
| Distributions from net realized gain | &nbsp;&nbsp;&nbsp; (3.71) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (3.18) | &nbsp;&nbsp;&nbsp; (0.85) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Distributions | &nbsp;&nbsp;&nbsp; (3.94) | &nbsp;&nbsp;&nbsp; (0.18) | &nbsp;&nbsp;&nbsp; (0.22) | &nbsp;&nbsp;&nbsp; (3.58) | &nbsp;&nbsp;&nbsp; (1.22) |
| **Net Asset Value, End of Period** | **$22.77** | **$26.62** | **$22.37** | **$21.58** | **$24.50** |
| **Total Return**<sup>2</sup> <br>| &nbsp;&nbsp;&nbsp; (0.28)% | &nbsp;&nbsp;&nbsp; 19.86% | &nbsp;&nbsp;&nbsp;&nbsp; 4.81% | &nbsp;&nbsp;&nbsp;&nbsp; 6.02% | &nbsp;&nbsp;&nbsp; (0.71)% |
| **Ratios to Average Net Assets:** |  |  |  |  |  |
| Net expenses<sup>3</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 1.37% | &nbsp;&nbsp;&nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 1.39% | &nbsp;&nbsp;&nbsp;&nbsp; 1.38% | &nbsp;&nbsp;&nbsp;&nbsp; 1.36% |
| Net investment income | &nbsp;&nbsp;&nbsp;&nbsp; 0.92% | &nbsp;&nbsp;&nbsp;&nbsp; 0.72% | &nbsp;&nbsp;&nbsp;&nbsp; 1.11% | &nbsp;&nbsp;&nbsp;&nbsp; 1.86% | &nbsp;&nbsp;&nbsp;&nbsp; 1.45% |
| Expense waiver/reimbursement<sup>4</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>|
| **Supplemental Data:** |  |  |  |  |  |
| Net assets, end of period (000 omitted) | $36846 | $42145 | $39438 | $40892 | $47958 |
| Portfolio turnover<sup>6</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 90% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 77% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 95% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 97% | &nbsp;&nbsp;&nbsp;&nbsp; 133% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| 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* <br> *deferred sales charge, if applicable.*<br>|
| 3 | *Amount does not reflect net expenses incurred by investment companies in which the Fund* <br> *may invest.*<br>|
| 4 | *This expense decrease is reflected in both the net expense and the net investment income ratios* <br> *shown above. Amount does not reflect expense waiver/reimbursement recorded by investment* <br> *companies in which the Fund may invest.*<br>|
| 5 | *Represents less than 0.01%.* |
| 6 | *Securities that mature are considered sales for purposes of this calculation.* |

---

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

**14**

------

Financial Highlights–Class R Shares

(For a Share Outstanding Throughout Each Period)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | **$26.60** | **$22.36** | **$21.57** | **$24.48** | **$25.86** |
| **Income From Investment Operations:** |  |  |  |  |  |
| Net investment income (loss) | &nbsp;&nbsp;&nbsp;&nbsp; 0.22<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.20<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.24<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.40<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.39 |
| Net realized and unrealized gain (loss) | &nbsp;&nbsp;&nbsp; (0.10) | &nbsp;&nbsp;&nbsp;&nbsp; 4.24 | &nbsp;&nbsp;&nbsp;&nbsp; 0.79 | &nbsp;&nbsp;&nbsp;&nbsp; 0.29 | &nbsp;&nbsp;&nbsp; (0.53) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total From Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp; 0.12 | &nbsp;&nbsp;&nbsp;&nbsp; 4.44 | &nbsp;&nbsp;&nbsp;&nbsp; 1.03 | &nbsp;&nbsp;&nbsp;&nbsp; 0.69 | &nbsp;&nbsp;&nbsp; (0.14) |
| **Less Distributions:** |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp;&nbsp; (0.23) | &nbsp;&nbsp;&nbsp; (0.20) | &nbsp;&nbsp;&nbsp; (0.24) | &nbsp;&nbsp;&nbsp; (0.42) | &nbsp;&nbsp;&nbsp; (0.39) |
| Distributions from net realized gain | &nbsp;&nbsp;&nbsp; (3.71) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (3.18) | &nbsp;&nbsp;&nbsp; (0.85) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Distributions | &nbsp;&nbsp;&nbsp; (3.94) | &nbsp;&nbsp;&nbsp; (0.20) | &nbsp;&nbsp;&nbsp; (0.24) | &nbsp;&nbsp;&nbsp; (3.60) | &nbsp;&nbsp;&nbsp; (1.24) |
| **Net Asset Value, End of Period** | **$22.78** | **$26.60** | **$22.36** | **$21.57** | **$24.48** |
| **Total Return**<sup>2</sup> <br>| &nbsp;&nbsp;&nbsp; (0.17)% | &nbsp;&nbsp;&nbsp; 19.90% | &nbsp;&nbsp;&nbsp;&nbsp; 4.88% | &nbsp;&nbsp;&nbsp;&nbsp; 6.17% | &nbsp;&nbsp;&nbsp; (0.68)% |
| **Ratios to Average Net Assets:** |  |  |  |  |  |
| Net expenses<sup>3</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 1.33% | &nbsp;&nbsp;&nbsp;&nbsp; 1.28% | &nbsp;&nbsp;&nbsp;&nbsp; 1.32% | &nbsp;&nbsp;&nbsp;&nbsp; 1.28% | &nbsp;&nbsp;&nbsp;&nbsp; 1.29% |
| Net investment income | &nbsp;&nbsp;&nbsp;&nbsp; 0.97% | &nbsp;&nbsp;&nbsp;&nbsp; 0.79% | &nbsp;&nbsp;&nbsp;&nbsp; 1.19% | &nbsp;&nbsp;&nbsp;&nbsp; 1.95% | &nbsp;&nbsp;&nbsp;&nbsp; 1.52% |
| Expense waiver/reimbursement<sup>4</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.25% | &nbsp;&nbsp;&nbsp;&nbsp; 0.25% | &nbsp;&nbsp;&nbsp;&nbsp; 0.25% | &nbsp;&nbsp;&nbsp;&nbsp; 0.26% | &nbsp;&nbsp;&nbsp;&nbsp; 0.25% |
| **Supplemental Data:** |  |  |  |  |  |
| Net assets, end of period (000 omitted) | $13798 | $14857 | $13849 | $15723 | $18836 |
| Portfolio turnover<sup>5</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 90% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 77% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 95% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 97% | &nbsp;&nbsp;&nbsp;&nbsp; 133% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| 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* <br> *may invest.*<br>|
| 4 | *This expense decrease is reflected in both the net expense and the net investment income ratios* <br> *shown above. Amount does not reflect expense waiver/reimbursement recorded by investment* <br> *companies in which the Fund may invest.*<br>|
| 5 | *Securities that mature are considered sales for purposes of this calculation.* |

---

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

**15**

------

Financial Highlights–Institutional Shares

(For a Share Outstanding Throughout Each Period)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** | **Year Ended November 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | **$26.56** | **$22.33** | **$21.55** | **$24.47** | **$25.84** |
| **Income From Investment Operations:** |  |  |  |  |  |
| Net investment income (loss) | &nbsp;&nbsp;&nbsp;&nbsp; 0.32<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.31<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.33<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.48<sup>1</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.50 |
| Net realized and unrealized gain (loss) | &nbsp;&nbsp;&nbsp; (0.11) | &nbsp;&nbsp;&nbsp;&nbsp; 4.25 | &nbsp;&nbsp;&nbsp;&nbsp; 0.78 | &nbsp;&nbsp;&nbsp;&nbsp; 0.28 | &nbsp;&nbsp;&nbsp; (0.53) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total From Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp; 0.21 | &nbsp;&nbsp;&nbsp;&nbsp; 4.56 | &nbsp;&nbsp;&nbsp;&nbsp; 1.11 | &nbsp;&nbsp;&nbsp;&nbsp; 0.76 | &nbsp;&nbsp;&nbsp; (0.03) |
| **Less Distributions:** |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp;&nbsp; (0.32) | &nbsp;&nbsp;&nbsp; (0.33) | &nbsp;&nbsp;&nbsp; (0.33) | &nbsp;&nbsp;&nbsp; (0.50) | &nbsp;&nbsp;&nbsp; (0.49) |
| Distributions from net realized gain | &nbsp;&nbsp;&nbsp; (3.71) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (3.18) | &nbsp;&nbsp;&nbsp; (0.85) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Distributions | &nbsp;&nbsp;&nbsp; (4.03) | &nbsp;&nbsp;&nbsp; (0.33) | &nbsp;&nbsp;&nbsp; (0.33) | &nbsp;&nbsp;&nbsp; (3.68) | &nbsp;&nbsp;&nbsp; (1.34) |
| **Net Asset Value, End of Period** | **$22.74** | **$26.56** | **$22.33** | **$21.55** | **$24.47** |
| **Total Return**<sup>2</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.24% | &nbsp;&nbsp;&nbsp; 20.46% | &nbsp;&nbsp;&nbsp;&nbsp; 5.32% | &nbsp;&nbsp;&nbsp;&nbsp; 6.56% | &nbsp;&nbsp;&nbsp; (0.22)% |
| **Ratios to Average Net Assets:** |  |  |  |  |  |
| Net expenses<sup>3</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.88% | &nbsp;&nbsp;&nbsp;&nbsp; 0.87% | &nbsp;&nbsp;&nbsp;&nbsp; 0.87% | &nbsp;&nbsp;&nbsp;&nbsp; 0.88% | &nbsp;&nbsp;&nbsp;&nbsp; 0.88% |
| Net investment income | &nbsp;&nbsp;&nbsp;&nbsp; 1.42% | &nbsp;&nbsp;&nbsp;&nbsp; 1.21% | &nbsp;&nbsp;&nbsp;&nbsp; 1.65% | &nbsp;&nbsp;&nbsp;&nbsp; 2.31% | &nbsp;&nbsp;&nbsp;&nbsp; 1.95% |
| Expense waiver/reimbursement<sup>4</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.00%<sup>5</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.04% | &nbsp;&nbsp;&nbsp;&nbsp; 0.01% |
| **Supplemental Data:** |  |  |  |  |  |
| Net assets, end of period (000 omitted) | $53816 | $55666 | $44309 | $58626 | $92893 |
| Portfolio turnover<sup>6</sup> <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 90% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 77% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 95% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 97% | &nbsp;&nbsp;&nbsp;&nbsp; 133% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| 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* <br> *may invest.*<br>|
| 4 | *This expense decrease is reflected in both the net expense and the net investment income ratios* <br> *shown above. Amount does not reflect expense waiver/reimbursement recorded by investment* <br> *companies in which the Fund may invest.*<br>|
| 5 | *Represents less than 0.01%.* |
| 6 | *Securities that mature are considered sales for purposes of this calculation.* |

---

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

**16**

------

Statement of Assets and Liabilities <br>November 30, 2022

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| **Assets:** |  |
| Investment in securities, at value including $21,790,903 of investments in an affiliated <br> holding\* (identified cost $694,014,922)<br>| $805136410 |
| Cash | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 855 |
| Due from broker (Note 2) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2000 |
| Income receivable | &nbsp;&nbsp;&nbsp;&nbsp; 2647294 |
| Income receivable from an affiliated holding | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 118248 |
| Receivable for investments sold | &nbsp;&nbsp;&nbsp; 11610590 |
| Receivable for shares sold | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 273543 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Assets | &nbsp;&nbsp; 819788940 |
| **Liabilities:** |  |
| Payable for investments purchased | &nbsp;&nbsp;&nbsp; 14105075 |
| Payable for shares redeemed | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 357399 |
| Payable for investment adviser fee (Note 5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12899 |
| Payable for administrative fee (Note 5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1691 |
| Payable for distribution services fee (Note 5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21672 |
| Payable for other service fees (Notes 2 and 5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 150308 |
| Accrued expenses (Note 5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 296940 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | &nbsp;&nbsp;&nbsp; 14945984 |
| Net assets for 35,371,587 shares outstanding | $804842956 |
| **Net Assets Consist of:** |  |
| Paid-in capital | $653731579 |
| Total distributable earnings (loss) | &nbsp;&nbsp; 151111377 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Net Assets | $804842956 |

---

Annual Shareholder Report

**17**

------

Statement of Assets and Liabilities–continued

---

| | |
|:---|:---|
| **Net Asset Value, Offering Price and Redemption Proceeds Per Share:** |  |
| **Class A Shares:** |  |
| Net asset value per share ($681,158,357 ÷ 29,930,009 shares outstanding), $0.001 par <br> value, 400,000,000 shares authorized<br>| $22.76 |
| Offering price per share (100/94.50 of $22.76) | $24.08 |
| Redemption proceeds per share | $22.76 |
| **Class B Shares:** |  |
| Net asset value per share ($4,309,342 ÷ 191,247 shares outstanding), $0.001 par value, <br> 100,000,000 shares authorized<br>| $22.53 |
| Offering price per share | $22.53 |
| Redemption proceeds per share (94.50/100 of $22.53) | $21.29 |
| **Class C Shares:** |  |
| Net asset value per share ($14,915,181 ÷ 659,901 shares outstanding), $0.001 par <br> value, 300,000,000 shares authorized<br>| $22.60 |
| Offering price per share | $22.60 |
| Redemption proceeds per share (99.00/100 of $22.60) | $22.37 |
| **Class F Shares:** |  |
| Net asset value per share ($36,846,456 ÷ 1,617,863 shares outstanding), $0.001 par <br> value, 100,000,000 shares authorized<br>| $22.77 |
| Offering price per share (100/99.00 of $22.77) | $23.00 |
| Redemption proceeds per share (99.00/100 of $22.77) | $22.54 |
| **Class R Shares:** |  |
| Net asset value per share ($13,797,568 ÷ 605,801 shares outstanding), $0.001 par <br> value, 300,000,000 shares authorized<br>| $22.78 |
| Offering price per share | $22.78 |
| Redemption proceeds per share | $22.78 |
| **Institutional Shares:** |  |
| Net asset value per share ($53,816,052 ÷ 2,366,766 shares outstanding), $0.001 par <br> value, 400,000,000 shares authorized<br>| $22.74 |
| Offering price per share | $22.74 |
| Redemption proceeds per share | $22.74 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

\* *See information listed after the Fund's Portfolio of Investments.*

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

**18**

------

Statement of Operations <br>Year Ended November 30, 2022

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| **Investment Income:** |  |
| Dividends (including $280,791 received from an affiliated holding\* and net of foreign <br> taxes withheld of $38,121)<br>| $19054896 |
| Interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11092 |
| &nbsp;&nbsp;&nbsp;&nbsp; TOTAL INCOME | &nbsp;&nbsp; 19065988 |
| **Expenses:** |  |
| Investment adviser fee (Note 5) | &nbsp;&nbsp;&nbsp;&nbsp; 4986360 |
| Administrative fee (Note 5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 651681 |
| Custodian fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34710 |
| Transfer agent fees (Note 2) | &nbsp;&nbsp;&nbsp;&nbsp; 1183744 |
| Directors'/Trustees' fees (Note 5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11966 |
| Auditing fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29100 |
| Legal fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11423 |
| Portfolio accounting fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 173707 |
| Distribution services fee (Note 5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 335168 |
| Other service fees (Notes 2 and 5) | &nbsp;&nbsp;&nbsp;&nbsp; 1901773 |
| Share registration costs | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 99416 |
| Printing and postage | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 64836 |
| Miscellaneous (Note 5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42682 |
| &nbsp;&nbsp;&nbsp;&nbsp; TOTAL EXPENSES | &nbsp;&nbsp;&nbsp;&nbsp; 9526566 |
| **Waivers and Reimbursements:** |  |
| Reimbursement of investment adviser fee (Note 5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (16406) |
| Waivers/reimbursements of other operating expenses (Notes 2 and 5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (68751) |
| &nbsp;&nbsp;&nbsp;&nbsp; TOTAL WAIVERS AND REIMBURSEMENTS | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (85157) |
| Net expenses | &nbsp;&nbsp;&nbsp;&nbsp; 9441409 |
| Net investment income | &nbsp;&nbsp;&nbsp;&nbsp; 9624579 |

---

Annual Shareholder Report

**19**

------

Statement of Operations–continued

---

| | |
|:---|:---|
| **Realized and Unrealized Gain (Loss) on Investments and Foreign Currency** <br> **Transactions:**<br>|  |
| Net realized gain on investments (including net realized loss of $(17634) on sales of <br> investments in an affiliated holding\*)<br>| $45076921 |
| Net realized loss on foreign currency transactions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (73554) |
| Realized gain distribution from affiliated investment company shares\* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3398 |
| Net change in unrealized appreciation of investments (including net change in <br> unrealized depreciation of $3,302 on investments in an affiliated holding\*)<br>| &nbsp;&nbsp; (55217460) |
| Net change in unrealized appreciation/depreciation of translation of assets and <br> liabilities in foreign currency<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 387 |
| Net realized and unrealized gain (loss) on investments and foreign <br> currency transactions<br>| &nbsp;&nbsp; (10210308) |
| Change in net assets resulting from operations | $(585729) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

\* *See information listed after the Fund's Portfolio of Investments.*

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

**20**

------

Statement of Changes in Net Assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
| **Year Ended November 30** | **2022** | **2021** |
| **Increase (Decrease) in Net Assets** |  |  |
| **Operations:** |  |  |
| Net investment income | $9624579 | $8365842 |
| Net realized gain (loss) | &nbsp;&nbsp;&nbsp;&nbsp; 45006765 | &nbsp;&nbsp; 140811019 |
| Net change in unrealized appreciation/depreciation | &nbsp;&nbsp;&nbsp; (55217073) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9166342 |
| &nbsp;&nbsp;&nbsp;&nbsp; CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (585729) | &nbsp;&nbsp; 158343203 |
| **Distributions to Shareholders:** |  |  |
| Class A Shares | &nbsp;&nbsp; (111660083) | &nbsp;&nbsp;&nbsp;&nbsp; (6995456) |
| Class B Shares | &nbsp;&nbsp;&nbsp;&nbsp; (1135428) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (47634) |
| Class C Shares | &nbsp;&nbsp;&nbsp;&nbsp; (2604402) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (90113) |
| Class F Shares | &nbsp;&nbsp;&nbsp;&nbsp; (6221777) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (306103) |
| Class R Shares | &nbsp;&nbsp;&nbsp;&nbsp; (2202530) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (117109) |
| Institutional Shares | &nbsp;&nbsp;&nbsp;&nbsp; (8562155) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (667696) |
| &nbsp;&nbsp;&nbsp;&nbsp; CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS <br> TO SHAREHOLDERS<br>| &nbsp;&nbsp; (132386375) | &nbsp;&nbsp;&nbsp;&nbsp; (8224111) |
| **Share Transactions:** |  |  |
| Proceeds from sale of shares | &nbsp;&nbsp;&nbsp;&nbsp; 41365976 | &nbsp;&nbsp;&nbsp;&nbsp; 41361411 |
| Net asset value of shares issued to shareholders in payment of <br> distributions declared<br>| &nbsp;&nbsp; 125866721 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7766134 |
| Cost of shares redeemed | &nbsp;&nbsp; (112537465) | &nbsp;&nbsp; (121219309) |
| &nbsp;&nbsp;&nbsp;&nbsp; CHANGE IN NET ASSETS RESULTING FROM <br> SHARE TRANSACTIONS<br>| &nbsp;&nbsp;&nbsp;&nbsp; 54695232 | &nbsp;&nbsp;&nbsp; (72091764) |
| Change in net assets | &nbsp;&nbsp;&nbsp; (78276872) | &nbsp;&nbsp;&nbsp;&nbsp; 78027328 |
| **Net Assets:** |  |  |
| Beginning of period | &nbsp;&nbsp; 883119828 | &nbsp;&nbsp; 805092500 |
| End of period | $804842956 | $883119828 |

---

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

**21**

------

Notes to Financial Statements

November 30, 2022

**1. ORGANIZATION** 

Federated Hermes Equity Income Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940, as amended (the "Act"), as a diversified, open-end management investment company. The Fund offers six classes of shares: Class A Shares, Class B Shares, Class C Shares, Class F Shares, Class R Shares and Institutional 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 above average income and capital appreciation.

Class B may be purchased through an exchange from the same share class of another Federated Hermes fund but Shares are closed to new accounts, new investors and new purchases by existing shareholders (excluding reinvestment of dividends and capital gains). Class B Shares of the Fund may be exchanged for Class B Shares of any other Federated Hermes fund.

**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:

◾ <br>

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.

◾ <br>

Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by Federated Equity Management Company of Pennsylvania (the "Adviser").

◾ <br>

Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.

◾ <br>

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 ask quotations.

◾ <br>

Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser.

◾ <br>

For securities that are fair valued in accordance with procedures established by and under the general supervision of the Adviser, 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

**22**

------

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 Adviser's valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion of the Adviser's 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** 

Pursuant to Rule 2a-5 under the Act, the Fund's Board of Directors (the "Directors") have designated the Adviser as the Fund's valuation designee to perform any fair value determinations for securities and other assets held by the Fund. The Adviser is subject to the Directors' oversight and certain reporting and other requirements intended to provide the Directors the information needed to oversee the Adviser's fair value determinations.

The Adviser, acting through its Valuation Committee, is responsible for determining the fair value of investments for which market quotations are not readily available. The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser's affiliated companies and determines fair value and oversees the calculation of the NAV. The Valuation Committee is also authorized to use pricing services 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 Adviser 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 Adviser. The Directors periodically review the fair valuations made by the Valuation Committee. The Directors have also approved the Adviser's fair valuation and significant events procedures as part of the Fund's compliance program and will review 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 ask 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

Annual Shareholder Report

**23**

------

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 Adviser.

The Adviser has also adopted procedures requiring an investment to be priced at its fair value whenever the Valuation Committee 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:

◾ <br>

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;

◾ <br>

Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;

◾ <br>

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 Adviser has 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 Valuation Committee will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Adviser. The Directors periodically review fair valuations made in response to significant events.

**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 monthly. 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 and reimbursements of $85,157 is disclosed in various locations in this Note 2 and Note 5. 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

**24**

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**Transfer Agent Fees** 

For the year ended November 30, 2022, transfer agent fees for the Fund were as follows:

---

| | | |
|:---|:---|:---|
|  | **Transfer Agent** <br>**Fees Incurred**<br>| **Transfer Agent** <br>**Fees Reimbursed**<br>|
| Class A Shares | $964844 | $(33446) |
| Class B Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10213 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — |
| Class C Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25710 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — |
| Class F Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 53315 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — |
| Class R Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48467 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — |
| Institutional Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 81195 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — |
| &nbsp;&nbsp;&nbsp;&nbsp; TOTAL | $1183744 | $(33446) |

---

**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 A Shares, Class B Shares, Class C Shares and Class F 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 November 30, 2022, other service fees for the Fund were as follows:

---

| | |
|:---|:---|
|  | **Other Service** <br>**Fees Incurred**<br>|
| Class A Shares | $1748859 |
| Class B Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14723 |
| Class C Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40651 |
| Class F Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 97540 |
| &nbsp;&nbsp;&nbsp;&nbsp; TOTAL | $1901773 |

---

**Federal Taxes** 

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986 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 November 30, 2022, 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 November 30, 2022, tax years 2019 through 2022 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America, the State of Maryland and the Commonwealth of Pennsylvania.

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.

Annual Shareholder Report

**25**

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**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 currency risk, security risk, market risk, and sector/asset class risk. 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 clearinghouse, as counterparty to all exchange traded futures contracts, guarantees the futures contracts against default.

During the year ended November 30, 2022, the Fund had no outstanding futures contracts.

**Foreign Exchange Contracts** 

The Fund enters into foreign exchange contracts to manage currency risk. Purchased contracts are used to acquire exposure to foreign currencies, whereas, contracts to sell are used to hedge the Fund's securities against currency fluctuations. Risks may arise upon entering into these transactions from the potential inability of counterparties to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the settlement date.

At November 30, 2022, the Fund had no outstanding foreign exchange contracts.

**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.

Annual Shareholder Report

**26**

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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 fiscal year end, resulting from changes in the exchange rate.

**Restricted Securities** 

The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Directors. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities, like other securities, are priced in accordance with procedures established by and under the general supervision of the Adviser.

**Option Contracts** 

The Fund buys or sells put and call options to seek to increase return, and to manage security risk, market risk and sector/asset class risk. The seller ("writer") of an option receives a payment or premium, from the buyer, which the writer keeps regardless of whether the buyer exercises the option. When the Fund writes a put or call option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options which expire are treated as realized gains. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the underlying reference instrument. When the Fund purchases a put or call option, an amount equal to the premium paid is recorded as an increase to the cost of the investment and subsequently marked to market to reflect the current value of the option purchased. Premiums paid for purchasing options which expire are treated as realized losses. Premiums received/paid for writing/purchasing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying reference instrument to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. Options can trade on securities or commodities exchanges. In this case, the exchange sets all the terms of the contract except for the price. Most exchanges require investors to maintain margin accounts through their brokers to cover their potential obligations to the exchange. This protects investors against potential defaults by the counterparty.

At November 30, 2022, the Fund had no outstanding purchased or written option contracts.

Annual Shareholder Report

**27**

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**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.

**3. CAPITAL STOCK** 

The following tables summarize share activity:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended** <br>**11/30/2022** | **Year Ended** <br>**11/30/2022** | **Year Ended** <br>**11/30/2021** | **Year Ended** <br>**11/30/2021** |
| **Class A Shares:** | **Shares** | **Amount** | **Shares** | **Amount** |
| Shares sold | 1061443 | $24583546 | &nbsp;&nbsp;&nbsp; 918321 | $23763172 |
| Shares issued to shareholders in payment of <br> distributions declared<br>| 4426548 | &nbsp;&nbsp; 105794702 | &nbsp;&nbsp;&nbsp; 258741 | &nbsp;&nbsp;&nbsp;&nbsp; 6578576 |
| Shares redeemed | (3533173) | &nbsp;&nbsp; (81351502) | (3387876) | &nbsp;&nbsp; (86855971) |
| &nbsp;&nbsp;&nbsp; NET CHANGE RESULTING FROM CLASS A <br> SHARE TRANSACTIONS<br>| 1954818 | $49026746 | (2210814) | $(56514223) |
|  | **Year Ended** <br>**11/30/2022** | **Year Ended** <br>**11/30/2022** | **Year Ended** <br>**11/30/2021** | **Year Ended** <br>**11/30/2021** |
| **Class B Shares:** | **Shares** | **Amount** | **Shares** | **Amount** |
| Shares sold | &nbsp;&nbsp;&nbsp;&nbsp; 10659 | $249531 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 952 | $25874 |
| Shares issued to shareholders in payment of <br> distributions declared<br>| &nbsp;&nbsp;&nbsp;&nbsp; 40568 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 964392 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1671 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40972 |
| Shares redeemed | &nbsp;&nbsp; (168936) | &nbsp;&nbsp;&nbsp;&nbsp; (3903573) | &nbsp;&nbsp; (238624) | &nbsp;&nbsp;&nbsp; (6016043) |
| &nbsp;&nbsp;&nbsp; NET CHANGE RESULTING FROM CLASS B <br> SHARE TRANSACTIONS<br>| &nbsp;&nbsp; (117709) | $(2689650) | &nbsp;&nbsp; (236001) | $(5949197) |
|  | **Year Ended** <br>**11/30/2022** | **Year Ended** <br>**11/30/2022** | **Year Ended** <br>**11/30/2021** | **Year Ended** <br>**11/30/2021** |
| **Class C Shares:** | **Shares** | **Amount** | **Shares** | **Amount** |
| Shares sold | &nbsp;&nbsp;&nbsp; 164368 | $3820247 | &nbsp;&nbsp;&nbsp;&nbsp; 92808 | $2385537 |
| Shares issued to shareholders in payment of <br> distributions declared<br>| &nbsp;&nbsp;&nbsp; 109140 | &nbsp;&nbsp;&nbsp;&nbsp; 2601011 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3642 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 89740 |
| Shares redeemed | &nbsp;&nbsp; (300380) | &nbsp;&nbsp;&nbsp;&nbsp; (6897390) | &nbsp;&nbsp; (340126) | &nbsp;&nbsp;&nbsp; (8770314) |
| &nbsp;&nbsp;&nbsp; NET CHANGE RESULTING FROM CLASS C <br> SHARE TRANSACTIONS<br>| &nbsp;&nbsp;&nbsp;&nbsp; (26872) | $(476132) | &nbsp;&nbsp; (243676) | $(6295037) |
|  | **Year Ended** <br>**11/30/2022** | **Year Ended** <br>**11/30/2022** | **Year Ended** <br>**11/30/2021** | **Year Ended** <br>**11/30/2021** |
| **Class F Shares:** | **Shares** | **Amount** | **Shares** | **Amount** |
| Shares sold | &nbsp;&nbsp;&nbsp;&nbsp; 54646 | $1238166 | &nbsp;&nbsp;&nbsp;&nbsp; 40661 | $1050760 |
| Shares issued to shareholders in payment of <br> distributions declared<br>| &nbsp;&nbsp;&nbsp; 249426 | &nbsp;&nbsp;&nbsp;&nbsp; 5972460 | &nbsp;&nbsp;&nbsp;&nbsp; 11463 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 289227 |
| Shares redeemed | &nbsp;&nbsp; (269546) | &nbsp;&nbsp;&nbsp;&nbsp; (6128101) | &nbsp;&nbsp; (231842) | &nbsp;&nbsp;&nbsp; (5989039) |
| &nbsp;&nbsp;&nbsp; NET CHANGE RESULTING FROM CLASS F <br> SHARE TRANSACTIONS<br>| &nbsp;&nbsp;&nbsp;&nbsp; 34526 | $1082525 | &nbsp;&nbsp; (179718) | $(4649052) |

---

Annual Shareholder Report

**28**

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended** <br>**11/30/2022** | **Year Ended** <br>**11/30/2022** | **Year Ended** <br>**11/30/2021** | **Year Ended** <br>**11/30/2021** |
| **Class R Shares:** | **Shares** | **Amount** | **Shares** | **Amount** |
| Shares sold | &nbsp;&nbsp;&nbsp;&nbsp; 83101 | $1895276 | &nbsp;&nbsp;&nbsp;&nbsp; 91528 | $2349147 |
| Shares issued to shareholders in payment of <br> distributions declared<br>| &nbsp;&nbsp;&nbsp;&nbsp; 91250 | &nbsp;&nbsp;&nbsp;&nbsp; 2183547 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4594 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 115986 |
| Shares redeemed | &nbsp;&nbsp; (126973) | &nbsp;&nbsp;&nbsp;&nbsp; (2927197) | &nbsp;&nbsp; (157207) | &nbsp;&nbsp;&nbsp; (4027171) |
| &nbsp;&nbsp;&nbsp; NET CHANGE RESULTING FROM CLASS R <br> SHARE TRANSACTIONS<br>| &nbsp;&nbsp;&nbsp;&nbsp; 47378 | $1151626 | &nbsp;&nbsp;&nbsp;&nbsp; (61085) | $(1562038) |
|  | **Year Ended** <br>**11/30/2022** | **Year Ended** <br>**11/30/2022** | **Year Ended** <br>**11/30/2021** | **Year Ended** <br>**11/30/2021** |
| **Institutional Shares:** | **Shares** | **Amount** | **Shares** | **Amount** |
| Shares sold | &nbsp;&nbsp;&nbsp; 419376 | $9579210 | &nbsp;&nbsp;&nbsp; 459431 | $11786921 |
| Shares issued to shareholders in payment of <br> distributions declared<br>| &nbsp;&nbsp;&nbsp; 350296 | &nbsp;&nbsp;&nbsp;&nbsp; 8350609 | &nbsp;&nbsp;&nbsp;&nbsp; 25469 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 651633 |
| Shares redeemed | &nbsp;&nbsp; (498854) | &nbsp;&nbsp; (11329702) | &nbsp;&nbsp; (372848) | &nbsp;&nbsp;&nbsp; (9560771) |
| &nbsp;&nbsp;&nbsp; NET CHANGE RESULTING FROM <br> INSTITUTIONAL SHARE TRANSACTIONS<br>| &nbsp;&nbsp;&nbsp; 270818 | $6600117 | &nbsp;&nbsp;&nbsp; 112052 | $2877783 |
| &nbsp;&nbsp;&nbsp; NET CHANGE RESULTING FROM TOTAL FUND <br> SHARE TRANSACTIONS<br>| 2162959 | $54695232 | (2819242) | $(72091764) |

---

**4. FEDERAL TAX INFORMATION** 

The accounting treatment of certain items in accordance with income tax regulations may differ from the accounting treatment in accordance with GAAP which may result in permanent differences. In the case of the Fund, such differences primarily result from regulatory settlement proceeds.

For the year ended November 30, 2022, permanent differences identified and reclassified among the components of net assets were as follows:

---

| | |
|:---|:---|
| **Increase (Decrease)** | **Increase (Decrease)** |
| **Paid-In Capital**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Distributable** <br>**Earnings (Loss)** <br>|
| $(86) | $86 |

---

The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended November 30, 2022 and 2021, was as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Ordinary income<sup>1</sup> <br>| $53874777 | $8224111 |
| Long-term capital gains | $78511598 | $— |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

1 *For tax purposes, short-term capital gain distributions are considered ordinary* *income distributions.*

Annual Shareholder Report

**29**

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As of November 30, 2022, the components of distributable earnings on a tax-basis were as follows:

---

| | |
|:---|:---|
| Undistributed ordinary income | $477683 |
| Net unrealized appreciation | $105740155 |
| Undistributed long-term capital gains | $44893539 |
| TOTAL | $151111377 |

---

At November 30, 2022, the cost of investments for federal tax purposes was $698,872,953. The net unrealized appreciation of investments for federal tax purposes was $105,740,155. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $138,226,842 and net unrealized depreciation from investments for those securities having an excess of cost over value of $32,486,687.

The difference between book-basis and tax-basis net unrealized appreciation is attributable to differing treatments for straddle loss deferrals and deferral of losses on wash sales.

At November 30, 2022, for federal income tax purposes, the Fund had $523,302 in straddle loss deferrals.

**5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES** 

**Investment Adviser Fee** 

The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.60% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund for competitive reasons such as to maintain the Fund's expense ratio, or as and when appropriate, to maintain positive or zero net yields.

The Adviser 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 November 30, 2022, the Adviser reimbursed $16,406.

**Administrative Fee** 

Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, "Investment Complex" is defined as all of the Federated Hermes Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:

---

| | |
|:---|:---|
| **Administrative Fee** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Average Daily Net Assets** <br>**of the Investment Complex**<br>|
| 0.100% | on assets up to $50 billion |
| 0.075% | on assets over $50 billion |

---

Annual Shareholder Report

**30**

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Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the year ended November 30, 2022, the annualized fee paid to FAS was 0.078% of average daily net assets of the Fund.

In addition, FAS may charge certain out-of-pocket expenses to the Fund.

**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 A Shares, Class B Shares, Class C Shares, Class F Shares and Class R 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:

---

| | |
|:---|:---|
|  | **Percentage of Average Daily** <br>**Net Assets of Class**<br>|
| Class A Shares | 0.05% |
| Class B Shares | 0.75% |
| Class C Shares | 0.75% |
| Class F Shares | 0.25% |
| Class R Shares | 0.50% |

---

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 November 30, 2022, distribution services fees for the Fund were as follows:

---

| | | |
|:---|:---|:---|
|  | **Distribution Services** <br>**Fees Incurred**<br>| **Distribution Services** <br>**Fees Waived**<br>|
| Class B Shares | $44169 | $— |
| Class C Shares | &nbsp;&nbsp; 122368 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — |
| Class F Shares | &nbsp;&nbsp;&nbsp; 98020 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — |
| Class R Shares | &nbsp;&nbsp;&nbsp; 70611 | &nbsp;&nbsp; (35305) |
| &nbsp;&nbsp;&nbsp;&nbsp; TOTAL | $335168 | $(35305) |

---

When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the year ended November 30, 2022, FSC retained $115,569 of fees paid by the Fund.

For the year ended November 30, 2022, the Fund's Class A Shares did not incur a distribution services fee; however, it may begin to incur this fee upon approval of the Directors.

**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 November 30, 2022, FSC retained $16,460 in sales charges from the sale of Class A Shares. FSC also retained $2,062, $307 and $5,186 of CDSC relating to redemptions of Class B Shares, Class C Shares and Class F Shares, respectively.

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**31**

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**Other Service Fees** 

For the year ended November 30, 2022, FSSC received $207,094 of the other service fees disclosed in Note 2.

**Expense Limitation** 

The Adviser and certain of its affiliates (which may include FSC, FAS 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 A and R Classes (after the voluntary waivers and/or reimbursements) will not exceed 1.11% and 1.35% (the "Fee Limit"), respectively, up to but not including the later of (the "Termination Date"): (a) February 1, 2024; or (b) the date of the Fund's next effective Prospectus. While the Adviser 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 Directors.

**Interfund Transactions** 

During the year ended November 30, 2022, the Fund engaged in sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees and/or common Officers. These sale transactions complied with Rule 17a-7 under the Act and amounted to $708,434. Net realized loss recognized on these transactions was $189,689.

**Directors'/Trustees' and Miscellaneous Fees** 

Certain Officers and Directors 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 Adviser 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. INVESTMENT TRANSACTIONS** 

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended November 30, 2022, were as follows:

---

| | |
|:---|:---|
| Purchases | $726759556 |
| Sales | $797457417 |

---

**7. CONCENTRATION OF RISK** 

The Fund may invest a portion of its assets in securities of companies that are deemed by the Fund's management to be classified in similar business sectors. Economic developments may have an effect on the liquidity and volatility of the portfolio securities.

Annual Shareholder Report

**32**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**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 22, 2022. 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 (a) the highest, on any day, of (i) the federal funds effective rate, (ii) the published secured overnight financing rate plus an assigned percentage, and (iii) 0.0%, plus (b) a margin. Any fund eligible to borrow under the LOC pays 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 November 30, 2022, the Fund had no outstanding loans. During the year ended November 30, 2022, the Fund did not utilize the LOC.

**9. INTERFUND LENDING** 

Pursuant to an Exemptive Order issued by the SEC, 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 November 30, 2022, there were no outstanding loans. During the year ended November 30, 2022, the program was not utilized.

**10. INDEMNIFICATIONS** 

Under the Fund's organizational documents, its Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund (other than liabilities arising out of their willful misfeasance, bad faith, gross negligence or reckless disregard of their duties to the Fund). In addition, in the normal course of business, the Fund provides certain indemnifications under arrangements with third parties. Typically, obligations to indemnify a third party arise in the context of an arrangement entered into by the Fund under which the Fund agrees to indemnify such third party for certain liabilities arising out of actions taken pursuant to the arrangement, provided the third party's actions are not deemed to have breached an agreed-upon standard of care (such as willful misfeasance, bad faith, gross negligence or reckless disregard of their duties under the contract). The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet arisen. The Fund does not anticipate any material claims or losses pursuant to these arrangements at this time, and accordingly expects the risk of loss to be remote.

**11. 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, and may continue to result in, closed borders, enhanced health screenings, disruptions to healthcare service preparation and delivery, quarantines, cancellations, and disruptions to supply chains,

Annual Shareholder Report

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workflow operations and consumer activity, as well as general concern and uncertainty. The impact of this coronavirus has resulted in substantial economic volatility. 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. In addition, governments, their regulatory agencies, or self-regulatory organizations may take actions in response to the pandemic, including significant fiscal and monetary policy changes, that may affect the instruments in which the Fund invests or the issuers of such investments. Any such impact could adversely affect the Fund's performance.

**12. SUBSEQUENT EVENT** 

On November 10, 2022, the Directors approved a Plan of Conversion for the Class B Shares of the Fund pursuant to which the Class B Shares of the Fund will be converted into the Fund's existing Class A Shares on or about February 3, 2023, resulting in the closure and termination of the Fund's Class B Shares.

**13. FEDERAL TAX INFORMATION (UNAUDITED)** 

For the fiscal year ended November 30, 2022, 31.56% 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 (including short-term capital gain) distributions made by the Fund during the year ended November 30, 2022, 28.00% qualify for the dividend received deduction available to corporate shareholders.

For the year ended November 30, 2022, the amount of long-term capital gains designated by the Fund was $78,511,598.

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Report of Independent Registered Public Accounting Firm

**TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF FEDERATED HERMES EQUITY INCOME FUND, INC.:**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of Federated Hermes Equity Income Fund, Inc. (the "Fund"), including the portfolio of investments, as of November 30, 2022, 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 at November 30, 2022, 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 Fund'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 Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

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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 Fund is not required to have, nor were we engaged to perform, an audit of the Fund'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 Fund's internal control over financial reporting. Accordingly, we express no such opinion.

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 November 30, 2022, by correspondence with the custodian and others; when replies were not received from brokers or others, we performed other auditing procedures. 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. <br>

![](ernstyoungsig.jpg)

We have served as the auditor of one or more Federated Hermes investment companies since 1979.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Boston, Massachusetts <br>January 24, 2023

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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 June 1, 2022 to November 30, 2022.

**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.

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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.

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| | | | |
|:---|:---|:---|:---|
|  | **Beginning** <br>**Account Value** <br>**6/1/2022**<br>| **Ending** <br>**Account Value** <br>**11/30/2022**<br>| **Expenses Paid** <br>**During Period**<sup>1</sup> <br>|
| **Actual:** |  |  |  |
| Class A Shares | $1000 | $988.70 | $5.58 |
| Class B Shares | $1000 | $985.00 | $9.36 |
| Class C Shares | $1000 | $984.90 | $9.45 |
| Class F Shares | $1000 | $987.40 | $6.88 |
| Class R Shares | $1000 | $987.80 | $6.73 |
| Institutional Shares | $1000 | $990.20 | $4.49 |
| **Hypothetical (assuming a 5% return** <br> **before expenses):**<br>|  |  |  |
| Class A Shares | $1000 | $1019.45 | $5.67 |
| Class B Shares | $1000 | $1015.64 | $9.50 |
| Class C Shares | $1000 | $1015.54 | $9.60 |
| Class F Shares | $1000 | $1018.15 | $6.98 |
| Class R Shares | $1000 | $1018.30 | $6.83 |
| Institutional Shares | $1000 | $1020.56 | $4.56 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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| | |
|:---|:---|
| 1 | *Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average* <br> *account value over the period, multiplied by 183/365 (to reflect the one-half-year period). The* <br> *annualized net expense ratios are as follows:*<br>|

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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| | |
|:---|:---|
| Class A Shares | 1.12% |
| Class B Shares | 1.88% |
| Class C Shares | 1.90% |
| Class F Shares | 1.38% |
| Class R Shares | 1.35% |
| Institutional Shares | 0.90% |

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Board of Directors and Corporation Officers

The Board of Directors is responsible for managing the Corporation's business affairs and for exercising all the Corporation's powers except those reserved for the shareholders. The following tables give information about each Director and the senior officers of the Fund. Where required, the tables separately list Directors who are "interested persons" of the Fund (i.e., "Interested" Directors) and those who are not (i.e., "Independent" Directors). Unless otherwise noted, the address of each person listed is 1001 Liberty Avenue, Pittsburgh, PA 15222-3779. The address of all Independent Directors listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2022, the Corporation comprised one portfolio(s), and the Federated Hermes Fund Family consisted of 33 investment companies (comprising 102 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Director 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 Corporation Directors and is available, without charge and upon request, by calling 1-800-341-7400, Option #4.

**Interested DIRECTORS Background** 

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| | |
|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Fund**<br> **Date Service Began**<br>| **Principal Occupation(s) for Past Five Years,**<br> **Other Directorships Held and Previous Position(s)**<br>|
| **J. Christopher Donahue\***<br> Birth Date: April 11, 1949<br> President and Director<br> Indefinite Term<br> Began serving: June 1986<br>| &nbsp;&nbsp; **Principal Occupations**: Principal Executive Officer and President of <br> certain of the Funds in the Federated Hermes Fund Family; Director or <br> Trustee of the Funds in the Federated Hermes Fund Family; President, <br> Chief Executive Officer and Director, Federated Hermes, Inc.; <br> Chairman and Trustee, Federated Investment Management Company; <br> Trustee, Federated Investment Counseling; Chairman and Director, <br> Federated Global Investment Management Corp.; Chairman and <br> Trustee, Federated Equity Management Company of Pennsylvania; <br> Trustee, Federated Shareholder Services Company; Director, <br> Federated Services Company.<br> **Previous Positions**: President, Federated Investment Counseling; <br> President and Chief Executive Officer, Federated Investment <br> Management Company, Federated Global Investment Management <br> Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd.<br>|

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| | |
|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Fund**<br> **Date Service Began**<br>| **Principal Occupation(s) for Past Five Years,**<br> **Other Directorships Held and Previous Position(s)**<br>|
| **John B. Fisher\***<br> Birth Date: May 16, 1956<br> Director<br> Indefinite Term<br> Began serving: May 2016<br>| &nbsp;&nbsp; **Principal Occupations**: Principal Executive Officer and President of <br> certain of the Funds in the Federated Hermes Fund Family; Director or <br> Trustee of certain of the Funds in the Federated Hermes Fund Family; <br> Director and Vice President, Federated Hermes, Inc.; President, <br> Director/Trustee and CEO, Federated Advisory Services Company, <br> Federated Equity Management Company of Pennsylvania, Federated <br> Global Investment Management Corp., Federated Investment <br> Counseling, Federated Investment Management Company, and <br> Federated MDTA LLC; Director, Federated Investors Trust Company.<br> **Previous Positions**: President and Director of the Institutional Sales <br> Division of Federated Securities Corp.; President and CEO of Passport <br> Research, Ltd.; Director and President, Technology, Federated <br> Services Company.<br>|

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\*

*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 DIRECTORS Background** 

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| | |
|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Fund**<br> **Date Service Began**<br>| **Principal Occupation(s) for Past Five Years,**<br> **Other Directorships Held, Previous Position(s) and Qualifications**<br>|
| **John T. Collins**<br> Birth Date: January 24, 1947<br> Director<br> Indefinite Term<br> Began serving: October 2013<br>| &nbsp;&nbsp; **Principal Occupations**: Director or Trustee, and Chair of the Board <br> of Directors or Trustees, of the Federated Hermes Fund Family; <br> formerly, Chairman and CEO, The Collins Group, Inc. (a private equity <br> firm) (Retired).<br> **Other Directorships Held**: Director, KLX Energy Services Holdings, <br> Inc. (oilfield services); former Director of KLX Corp. (aerospace).<br> **Qualifications**: Mr. Collins has served in several business and financial <br> management roles and directorship positions throughout his career. <br> Mr. Collins previously served as Chairman and CEO of The Collins <br> Group, Inc. (a private equity firm) and as a Director of KLX Corp. <br> Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins <br> previously served as Director and Audit Committee Member, Bank of <br> America Corp.; Director, FleetBoston Financial Corp.; and Director, <br> Beth Israel Deaconess Medical Center (Harvard University <br> Affiliate Hospital). <br>|

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| | |
|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Fund**<br> **Date Service Began**<br>| **Principal Occupation(s) for Past Five Years,**<br> **Other Directorships Held, Previous Position(s) and Qualifications**<br>|
| **G. Thomas Hough**<br> Birth Date: February 28, 1955<br> Director<br> Indefinite Term<br> Began serving: August 2015<br>| &nbsp;&nbsp; **Principal Occupations**: Director or Trustee, Chair of the Audit <br> Committee of the Federated Hermes Fund Family; formerly, Vice <br> Chair, Ernst & Young LLP (public accounting firm) (Retired). <br> **Other Directorships Held**: Director, Chair of the Audit Committee, <br> Equifax, Inc.; Lead Director, Member of the Audit and Nominating and <br> Corporate Governance Committees, Haverty Furniture Companies, <br> Inc.; formerly, Director, Member of Governance and Compensation <br> Committees, Publix Super Markets, Inc.<br> **Qualifications**: Mr. Hough has served in accounting, business <br> management and directorship positions throughout his career. <br> Mr. Hough most recently held the position of Americas Vice Chair of <br> Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough <br> serves on the President's Cabinet and Business School Board of <br> Visitors for the University of Alabama. Mr. Hough previously served on <br> the Business School Board of Visitors for Wake Forest University, and <br> he previously served as an Executive Committee member of the <br> United States Golf Association. <br>|
| **Maureen Lally-Green**<br> Birth Date: July 5, 1949<br> Director<br> Indefinite Term<br> Began serving: August 2009<br>| &nbsp;&nbsp; **Principal Occupations**: Director or Trustee of the Federated Hermes <br> Fund Family; Adjunct Professor Emerita of Law, Duquesne University <br> School of Law; formerly, Dean of the Duquesne University School of <br> Law and Professor of Law and Interim Dean of the Duquesne <br> University School of Law; formerly, Associate General Secretary and <br> Director, Office of Church Relations, Diocese of Pittsburgh.<br> **Other Directorships Held**: Director, CNX Resources Corporation <br> (natural gas).<br> **Qualifications**: Judge Lally-Green has served in various legal and <br> business roles and directorship positions throughout her career. Judge <br> Lally-Green previously held the position of Dean of the School of Law <br> of Duquesne University (as well as Interim Dean). Judge Lally-Green <br> previously served as Associate General Secretary of the Diocese of <br> Pittsburgh, a member of the Superior Court of Pennsylvania and as a <br> Professor of Law, Duquesne University School of Law. Judge Lally-<br> Green was appointed by the Supreme Court of Pennsylvania to serve <br> on the Supreme Court's Board of Continuing Judicial Education and <br> the Supreme Court's Appellate Court Procedural Rules Committee. <br> Judge Lally-Green also currently holds the positions on not for profit <br> or for profit boards of directors as follows: Director and Chair, UPMC <br> Mercy Hospital; Regent, Saint Vincent Seminary; Member, <br> Pennsylvania State Board of Education (public); Director, Catholic <br> Charities, Pittsburgh; and Director CNX Resources Corporation <br> (natural gas). Judge Lally-Green has held the positions of: Director, <br> Auberle; Director, Epilepsy Foundation of Western and Central <br> Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint <br> Thomas More Society; Director and Chair, Catholic High Schools of <br> the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; <br> Director, St. Vincent College; Director and Chair, North Catholic High <br> School, Inc.; Director and Vice Chair, Our Campaign for the Church <br> Alive!, Inc.; and Director and Vice Chair, Saint Francis University.<br>|

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| | |
|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Fund**<br> **Date Service Began**<br>| **Principal Occupation(s) for Past Five Years,**<br> **Other Directorships Held, Previous Position(s) and Qualifications**<br>|
| **Thomas M. O'Neill**<br> Birth Date: June 14, 1951<br> Director<br> Indefinite Term<br> Began serving: August 2006<br>| &nbsp;&nbsp; **Principal Occupations**: Director or Trustee of the Federated Hermes <br> Fund Family; Sole Proprietor, Navigator Management Company <br> (investment and strategic consulting).<br> **Other Directorships Held**: None.<br> **Qualifications**: Mr. O'Neill has served in several business, mutual fund <br> and financial management roles and directorship positions throughout <br> his career. Mr. O'Neill serves as Director, Medicines for Humanity. <br> Mr. O'Neill previously served as Chief Executive Officer and President, <br> Managing Director and Chief Investment Officer, Fleet Investment <br> Advisors; President and Chief Executive Officer, Aeltus Investment <br> Management, Inc.; General Partner, Hellman, Jordan Management <br> Co., Boston, MA; Chief Investment Officer, The Putnam Companies, <br> Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director <br> and Consultant, EZE Castle Software (investment order management <br> software); Director, Midway Pacific (lumber); and Director, The <br> Golisano Children's Museum of Naples, Florida.<br>|
| **Madelyn A. Reilly**<br> Birth Date: February 2, 1956<br> Director<br> Indefinite Term<br> Began serving: <br> November 2020<br>| &nbsp;&nbsp; **Principal Occupations**: Director or Trustee of the Federated Hermes <br> Fund Family; formerly, Senior Vice President for Legal Affairs, <br> General Counsel and Secretary of Board of Directors, Duquesne <br> University (Retired).<br> **Other Directorships Held**: None.<br> **Qualifications**: Ms. Reilly has served in various business and legal <br> management roles throughout her career. Ms. Reilly previously served <br> as Senior Vice President for Legal Affairs, General Counsel and <br> Secretary of Board of Directors and Director of Risk Management and <br> Associate General Counsel, Duquesne University. Prior to her work at <br> Duquesne University, Ms. Reilly served as Assistant General Counsel <br> of Compliance and Enterprise Risk as well as Senior Counsel of <br> Environment, Health and Safety, PPG Industries. Ms. Reilly currently <br> serves as a member of the Board of Directors of UPMC <br> Mercy Hospital.<br>|

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| | |
|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Fund**<br> **Date Service Began**<br>| **Principal Occupation(s) for Past Five Years,**<br> **Other Directorships Held, Previous Position(s) and Qualifications**<br>|
| **P. Jerome Richey**<br> Birth Date: February 23, 1949<br> Director<br> Indefinite Term<br> Began serving: October 2013<br>| &nbsp;&nbsp; **Principal Occupations**: Director or Trustee of the Federated Hermes <br> Fund Family; Retired; formerly, Senior Vice Chancellor and Chief Legal <br> Officer, University of Pittsburgh and Executive Vice President and <br> Chief Legal Officer, CONSOL Energy Inc. (now split into two separate <br> publicly traded companies known as CONSOL Energy Inc. and CNX <br> Resources Corp.).<br> **Other Directorships Held**: None.<br> **Qualifications**: Mr. Richey has served in several business and legal <br> management roles and directorship positions throughout his career. <br> Mr. Richey most recently held the positions of Senior Vice Chancellor <br> and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously <br> served as Chairman of the Board, Epilepsy Foundation of Western <br> Pennsylvania and Chairman of the Board, World Affairs Council of <br> Pittsburgh. Mr. Richey previously served as Chief Legal Officer and <br> Executive Vice President, CONSOL Energy Inc. and CNX Gas <br> Company; and Board Member, Ethics Counsel and Shareholder, <br> Buchanan Ingersoll & Rooney PC (a law firm). <br>|
| **John S. Walsh**<br> Birth Date:<br> November 28, 1957<br> Director<br> Indefinite Term<br> Began serving: January 1999<br>| &nbsp;&nbsp; **Principal Occupations**: Director or Trustee of the Federated Hermes <br> Fund Family; President and Director, Heat Wagon, Inc. (manufacturer <br> of construction temporary heaters); President and Director, <br> Manufacturers Products, Inc. (distributor of portable construction <br> heaters); President, Portable Heater Parts, a division of Manufacturers <br> Products, Inc. <br> **Other Directorships Held**: None.<br> **Qualifications**: Mr. Walsh has served in several business management <br> roles and directorship positions throughout his career. Mr. Walsh <br> previously served as Vice President, Walsh & Kelly, Inc. <br> (paving contractors).<br>|

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**OFFICERS** 

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

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| | |
|:---|:---|
| **Name**<br> **Birth Date**<br> **Address**<br> **Positions Held with Fund**<br> **Date Service Began**<br>| **Principal Occupation(s) for Past Five Years**<br> **and Previous Position(s)**<br>|
| **Stephen F. Auth**<br> Birth Date: <br> September 13, 1956<br> 101 Park Avenue<br> 41<sup>st</sup> Floor<br> New York, NY 10178<br> CHIEF INVESTMENT OFFICER<br> Officer since: November 2002<br>| &nbsp;&nbsp; **Principal Occupations**: Stephen F. Auth is Chief Investment Officer of <br> various Funds in the Federated Hermes Fund Family; Executive Vice <br> President, Federated Investment Counseling, Federated Global <br> Investment Management Corp. and Federated Equity Management <br> Company of Pennsylvania.<br> **Previous Positions**: Executive Vice President, Federated Investment <br> Management Company and Passport Research, Ltd. (investment <br> advisory subsidiary of Federated); Senior Vice President, Global <br> Portfolio Management Services Division; Senior Vice President, <br> Federated Investment Management Company and Passport <br> Research, Ltd.; Senior Managing Director and Portfolio Manager, <br> Prudential Investments.<br>|

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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Evaluation and Approval of Advisory Contract–May 2022

**Federated Hermes Equity Income Fund, Inc. (the "Fund")**

At its meetings in May 2022 (the "May Meetings"), the Fund's Board of Directors (the "Board"), including those Directors who are not "interested persons" of the Fund, as defined in the Investment Company Act of 1940 (the "Independent Directors"), 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 approve the continuation of the existing arrangement. The information, factors and conclusions that formed the basis for the Board's approval are summarized below.

***<u>Information Received and Review Process</u>***

At the request of the Independent Directors, 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 Directors. At the request of the Independent Directors, 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, the Board considered information specifically prepared in connection with the approval of the continuation of the Contract that was presented at the May Meetings. In this regard, 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 by independent legal counsel on behalf of the Independent Directors encompassing a wide variety of topics, including those summarized below. The Board also considered such additional matters as the Independent Directors

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deemed reasonably necessary to evaluate the Contract, which included detailed information about the Fund and Federated Hermes furnished to the Board at its meetings throughout the year and in between regularly scheduled meetings on particular matters as the need arose.

The Board's consideration of the Contract included review of materials and information covering the following matters, among others: the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates; Federated Hermes' business and operations; the Adviser's investment philosophy, personnel and processes; the Fund's investment objectives and 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); the Fund's fees and 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 financial condition of Federated Hermes; the Adviser's profitability with respect to the Fund; distribution and sales activity for the Fund; and the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any).

The Board also considered judicial decisions concerning allegedly excessive investment advisory fees charged to other registered funds 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 compensation from a fund: (1) the nature and quality of the services provided by the adviser to the fund and its shareholders, including the performance of the fund, its benchmark and comparable funds; (2) the adviser's cost of providing the services and the profitability to the adviser of providing advisory services to the fund; (3) the extent to which the adviser may realize "economies of scale" as the fund grows larger and, if such economies of scale exist, whether they have been appropriately shared with the fund and its shareholders or the family of funds; (4) any "fall-out" benefits that accrue to the adviser because of its relationship with the fund, including research services received from brokers that execute fund trades and any fees paid to affiliates of the adviser for services rendered to the fund; (5) comparative fee and expense structures, including a comparison of management fees paid to the 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 the adviser's services and fees. The Board noted that the Securities and Exchange Commission ("SEC") disclosure requirements

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regarding the basis for a fund board's approval of the fund's investment advisory contract generally align with the factors listed above. The Board was guided by these factors 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 oversight of the other funds advised by Federated Hermes (each, a "Federated Hermes Fund" and, collectively, the ("Federated Hermes Funds").

In addition to considering the above-referenced factors, the Board was mindful of the preferences and expectations of Fund shareholders and 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 the Contract. In particular, the Board recognized that many shareholders likely have invested in the Fund on the strength of Federated Hermes' industry standing and reputation and with the expectation that Federated Hermes will have a continuing role in providing advisory services to the Fund. Thus, the Board observed that in the marketplace there are a range of investment options available to the Fund's shareholders and such shareholders, having had the opportunity to consider other investment options, have effectively selected Federated Hermes by virtue of investing in the Fund.

In determining to approve the continuation of the Contract, the members of the Board reviewed and evaluated information and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment. While individual members of the Board may have weighed certain factors differently, the Board's determination to approve the continuation of 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 Board recognized that its evaluation process is evolutionary and that the factors considered and emphasis placed on relevant factors may change in recognition of changing circumstances in the registered fund marketplace. The Independent Directors were assisted throughout the evaluation process by independent legal counsel. In connection with their deliberations at the May Meetings, the Independent Directors 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 Directors 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 family of Federated Hermes Funds, but its approvals were made on a fund-by-fund basis.

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***<u>Nature, Extent and Quality of Services</u>***

The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of Federated Hermes dedicated to the Fund. In this regard, the Board evaluated, among other things, the terms of the Contract and the range of services provided to the Fund by Federated Hermes. The Board considered the Adviser's personnel, investment philosophy and process, investment research capabilities and resources, trade operations capabilities, experience and performance track record. 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 Federated Hermes' ability and experience in attracting and retaining qualified personnel to service the Fund. The Board also considered the Adviser's ability to deliver competitive investment performance for the Fund when compared to the Fund's Performance Peer Group (as defined below), which was deemed by the Board to be a useful indicator of how the Adviser is executing the Fund's investment program.

In addition, the Board considered the financial resources and overall reputation of Federated Hermes and its willingness to consider and make investments in personnel, infrastructure, technology, cybersecurity, business continuity planning and operational enhancements that are designed to benefit the Federated Hermes Funds. The Board noted the significant acquisition of Hermes Fund Managers Limited by Federated Hermes, which has deepened the organization's investment management expertise and capabilities and expanded the investment process for all of the Federated Hermes Funds to have access to analytical resources related to environmental, social and governance ("ESG") factors and issuer engagement on ESG matters. The Board considered Federated Hermes' oversight of the securities lending program for the Federated Hermes Funds that engage in securities lending and noted the income earned by the Federated Hermes Funds that participate in such program. In addition, the Board considered the quality of Federated Hermes' communications with the Board and responsiveness to Board inquiries and requests made from time to time with respect to the Fund and other Federated Hermes Funds. In this regard, the Board took into account Federated Hermes' communications with the Board in light of the pandemic. The Board also considered that Federated Hermes is responsible for providing the Federated Hermes Funds' officers.

The Board received and evaluated information regarding Federated Hermes' regulatory and compliance environment. The Board considered Federated Hermes' compliance program and compliance history and reports from the CCO about Federated Hermes' compliance with applicable laws and regulations, including responses to regulatory developments and any compliance or other issues raised by regulatory agencies. The Board also noted Federated Hermes' support of the Federated Hermes Funds' compliance control structure and the compliance-related resources devoted by Federated

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Hermes in support of the Fund's obligations pursuant to Rule 38a-1 under the Investment Company Act of 1940, including Federated Hermes' commitment to respond to rulemaking and other regulatory initiatives of the SEC. The Board considered Federated Hermes' approach to internal audits and risk management with respect to the Federated Hermes Funds and its day-to-day oversight of the Federated Hermes Funds' compliance with their investment objectives and policies as well as with applicable laws and regulations, noting that regulatory and other developments had over time led to an increase in the scope of Federated Hermes' oversight in this regard, including in connection with the designation of the Federated Hermes Funds' investment advisers as the administrators of the Federated Hermes Funds' liquidity risk management program.

The Board also considered the implementation of Federated Hermes' business continuity plans and recognized steps taken by Federated Hermes to continue to provide the same nature, extent and quality of services to the Federated Hermes Funds during the pandemic. In addition, the Board noted Federated Hermes' commitment to maintaining high quality systems and expending substantial resources to prepare for and respond to ongoing changes due to the market, regulatory and control environments in which the Fund and its service providers operate, including changes associated with the pandemic.

The Board considered Federated Hermes' efforts to provide shareholders in the Federated Hermes Funds with a comprehensive array of funds with different investment objectives, policies and strategies. The Board considered the expenses that Federated Hermes had incurred, as well as the entrepreneurial and other risks assumed by Federated Hermes, in sponsoring and providing on-going services to new funds to expand these opportunities for shareholders. The Board noted the benefits to shareholders of being part of the family of Federated Hermes Funds, which include the general right to exchange investments between the same class of shares without the incurrence of additional sales charges.

Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided by the Adviser to the Fund.

***<u>Fund Investment Performance</u>***

The Board considered the investment performance of the Fund. In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks. The Board considered detailed investment reports on, and the Adviser's analysis of, the Fund's performance over different time periods that were provided to the Board throughout the year and in connection with the May Meetings. These reports include, among other items, information on the Fund's

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gross and net returns, the Fund's investment performance compared to one or more relevant categories or groups of peer funds and the Fund's benchmark index, performance attribution information and commentary on the effect of market conditions.

The Board also reviewed comparative information regarding the performance of other registered funds in the category of peer funds selected by Morningstar, Inc. (the "Morningstar"), an independent fund ranking organization (the "Performance Peer Group"). The Board noted the CCO's view that comparisons to fund peer groups may be helpful, 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.

The Fund's performance fell below the median of the Performance Peer Group for the one-year, three-year and five-year periods ended December 31, 2021. 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.

Based on these considerations, the Board concluded that it had continued confidence in the Adviser's overall capabilities to manage the Fund.

***<u>Fund Expenses</u>***

The Board considered the advisory fee and overall expense structure of the Fund and the comparative fee and expense information that had been provided in connection with the May Meetings. 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.

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 noted that it found the use of such comparisons to be relevant to its evaluation. The Board focused on comparisons with other similar registered funds more heavily than non-registered fund products or services because such comparisons are believed to be more relevant. The Board considered that other registered funds are the products most like the Fund, in that they are readily available to Fund

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shareholders as alternative investment vehicles, and they are the type of investment vehicle, in fact, chosen and maintained by the Fund's shareholders. The Board noted that the range of such other registered funds' fees and expenses, therefore, appears to be a relevant indicator of what investors 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.

The Board also 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-registered fund clients (such as institutional separate accounts) and third-party unaffiliated registered funds for which the Adviser or its affiliates serve as sub-adviser. The Board noted the CCO's conclusion that non-registered 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) 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 and fund liquidity; (vi) different administrative responsibilities; (vii) different degrees of risk associated with management; and (viii) 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 registered fund business versus managing a discrete pool of assets as a sub-adviser to another institution's registered fund, noting the CCO's view 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 registered 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.

Based on these considerations, the Board concluded that the fees and total operating expenses of the Fund, in conjunction with other matters considered, are reasonable in light of the services provided.

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***<u>Profitability</u>***

The Board received and considered profitability information furnished by Federated Hermes, as requested by the CCO. Such profitability information included revenues reported on a fund-by-fund basis and estimates of the allocation of expenses made 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 on a fund-by-fund basis 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. In addition, the Board considered the CCO's view that 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 are consistent with the methodologies previously reviewed by an independent consultant. The Board noted that the independent consultant had previously conducted a review of the allocation methodologies and reported 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.

***<u>Economies of Scale</u>***

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 Federated Hermes has made significant and long-term investments in areas that support all of the Federated Hermes Funds, such as: personnel, processes and tools for portfolio management, including the use of market data on which portfolio managers make investment decisions; trading operations; ESG integration and issuer engagement on ESG matters; shareholder services; compliance; business continuity; cybersecurity; internal audit and risk management functions; and technology that supports the provision of investment management services. 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 are likely to be shared

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with the family of Federated Hermes Funds as a whole. In addition, the Board considered that fee waivers and expense 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. The Board considered that, in order for the Federated Hermes Funds to remain competitive in the marketplace, Federated Hermes has frequently waived fees and/or reimbursed expenses for the Federated Hermes Funds and has disclosed to shareholders and/or reported to the Board its intention to do so (or continue to do so) in the future. The Board also considered Federated Hermes' reductions in contractual management fees for certain Federated Hermes Funds during the prior year, including in response to the CCO's recommendations in the prior year's CCO Fee Evaluation Report, which have resulted in benefits being realized by shareholders.

The Board also considered reports on adviser-paid fees (commonly referred to as "revenue sharing") that were provided to the Board throughout the year and in connection with the May Meetings. The Board considered that Federated Hermes and the CCO believe 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 evaluate the reasonableness 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 uniform methodology or pattern with respect to structuring fund advisory fees with breakpoints that serve to reduce the fees as a fund attains a certain size.

***<u>Other Benefits</u>***

The Board considered information regarding the compensation and other ancillary (or "fall-out") benefits that Federated Hermes derived from its relationships with the Federated Hermes Funds. The Board noted that, in addition to receiving advisory fees under the Federated Hermes Funds' investment advisory contracts, Federated Hermes' affiliates also receive fees for providing other services to the Federated Hermes Funds under separate contracts (e.g., for serving as the Federated 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 that Federated Hermes may derive from its receipt of research services from brokers who execute portfolio trades for the Federated Hermes Funds.

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***<u>Conclusions</u>***

The Board considered: (i) the CCO's conclusion that his observations and the information accompanying the CCO Fee Evaluation Report show that the management fee for the Fund is reasonable; and (ii) 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 sub-advisory arrangements is a continuing and ongoing process that is informed by the information that the Board requests and receives from 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 ongoing oversight of the Federated Hermes Funds.

On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Board, and the evaluation thereof, the Board, including the Independent Directors, unanimously voted to approve the continuation of the Contract. The Board based its determination to approve the Contract on the totality of the circumstances and relevant factors and with a view of 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 approve the continuation of the existing arrangement.

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Liquidity Risk Management Program– <br>Annual 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 Equity Income Fund, Inc. (the "Fund" and, collectively with the other non-money market open-end funds advised by Federated Hermes, the "Federated Hermes Funds") has adopted and implemented a liquidity risk management program (the "Program") for the Fund. 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 Directors of the "Fund" (the "Board") has approved the designation of each Federated Hermes Fund's investment adviser as the administrator (the "Administrator") for the Program with respect to that Fund. The Administrator, in turn, has delegated day-to-day responsibility for the administration of the Program to multiple Liquidity Risk Management Committees, which are comprised of representatives from certain divisions within Federated Hermes.

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 2022, 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 April 1, 2021 through March 31, 2022 (the "Period"). The Report 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, reverse repurchase agreement transactions, redemptions

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delayed beyond the normal T+1 settlement, but within seven days of the redemption request, 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 it was not necessary for the Fund to utilize, and 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;

◾ the fact that there were no liquidity events during the Period, that materially affected the Fund's liquidity risk

◾ the impact on liquidity and management of liquidity risk caused by extended non-U.S. market closures and confirmation that there were no issues for any of the affected Federated Hermes Funds in meeting shareholder redemptions at any time during these temporary non-U.S. market closures;

◾ circumstances during the Period under which the Administrator convened meetings of the Liquidity Risk Management Committees more frequently than normal to conduct enhanced liquidity risk monitoring, including prior to the Russian invasion of Ukraine.

Based on this review, the Administrator 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, Option #4. 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. <br> ![](edelivery.jpg)

![](fhilogok11p.jpg)

Federated Hermes Equity Income Fund, Inc. <br>Federated Hermes Funds <br>4000 Ericsson Drive <br>Warrendale, PA 15086-7561

Contact us at **FederatedInvestors.com** <br>or call 1-800-341-7400.

Federated Securities Corp., Distributor

*CUSIP 313915100* <br>*CUSIP 313915209* <br>*CUSIP 313915308* <br>*CUSIP 313915407* <br>*CUSIP 313915605* <br>*CUSIP 313915506*

*8042506 (1/23)*© 2023 Federated Hermes, Inc.

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**Item 2.** **Code of Ethics**

(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics (the "Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers") that applies to the registrant's Principal Executive Officer and Principal Financial Officer; the registrant's Principal Financial Officer also serves as the Principal Accounting Officer.

(c) There was no amendment to the registrant's code of ethics described in Item 2(a) above during the period covered by the report.

(d) There was no waiver granted, either actual or implicit, from a provision to the registrant's code of ethics described in Item 2(a) above during the period covered by the report.

(e) Not Applicable

(f)(3) The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.

**Item 3. Audit Committee Financial Expert**

The registrant's Board has determined that each of the following members of the Board's Audit Committee is an "audit committee financial expert," and is "independent," for purposes of this Item: G. Thomas Hough and Thomas M. O'Neill.

**Item 4.** **Principal Accountant Fees and Services**

(a) Audit Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2022 – $32,589

Fiscal year ended 2021 - $29,100

(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2022 - $0

Fiscal year ended 2021 - $0

Amount requiring approval of the registrant's Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.

(c) Tax Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2022 - $0

Fiscal year ended 2021 - $0

Amount requiring approval of the registrant's Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.

(d) All Other Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2022 - $0

Fiscal year ended 2021 - $0

Amount requiring approval of the registrant's Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $61,750 and $39,076 respectively. Fiscal year ended 2022- Service fees for analysis of potential Passive Foreign Investment Company holdings. Fiscal year ended 2021- Service fees for analysis of potential Passive Foreign Investment Company holdings.

(e)(1) Audit Committee Policies regarding Pre-approval of Services.

The Audit Committee is required to pre-approve audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor's independence. Unless a type of service to be provided by the independent auditor has received general pre-approval, it will require specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.

Certain services have the general pre-approval of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate to management its responsibilities to pre-approve services performed by the independent auditor.

The Audit Committee has delegated pre-approval authority to its chairman (the "Chairman") for services that do not exceed a specified dollar threshold. The Chairman or Chief Audit Executive will report any such pre-approval decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with such pre-approval authority when the Chairman is unavailable.

AUDIT SERVICES

The annual audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee will approve, if necessary, any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.

In addition to the annual audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other audit services, which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain audit services; with limited exception, all other audit services must be specifically pre-approved by the Audit Committee.

AUDIT-RELATED SERVICES

Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the RIC's financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of audit-related services does not impair the independence of the auditor, and has pre-approved certain audit-related services; all other audit-related services must be specifically pre-approved by the Audit Committee.

TAX SERVICES

The Audit Committee believes that the independent auditor can provide tax services to the RIC such as tax compliance, tax planning and tax advice without impairing the auditor's independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved certain tax services; with limited exception, all tax services involving large and complex transactions must be specifically pre-approved by the Audit Committee.

ALL OTHER SERVICES

With respect to the provision of permissible services other than audit, review or attest services the pre-approval requirement is waived if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) With respect to such services rendered to the Funds, the aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues paid by the audit client to its accountant during the fiscal year in which the services are provided; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) With respect to such services rendered to the Fund's investment adviser (the "Adviser")and any entity controlling, controlled by to under common control with the Adviser such as affiliated non-U.S. and U.S. funds not under the Audit Committee's purview and which do not fall within a category of service which has been determined by the Audit Committee not to have a direct impact on the operations or financial reporting of the RIC, the aggregate amount of all services provided constitutes no more than five percent of the total amount of revenues paid to the RIC's auditor by the RIC, its Adviser and any entity controlling, controlled by, or under common control with the Adviser during the fiscal year in which the services are provided; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Such services were not recognized by the issuer or RIC at the time of the engagement to be non-audit services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Such services are promptly brought to the attention of the Audit Committee and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee who are members of the Board of Directors to whom authority to grant such approvals has been delegated by the Audit Committee.

The Audit Committee may grant general pre-approval to those permissible non-audit services which qualify for pre-approval and which it believes are routine and recurring services, and would not impair the independence of the auditor.

The Securities and Exchange Commission's (the "SEC") rules and relevant guidance should be consulted to determine the precise definitions of these services and applicability of exceptions to certain of the prohibitions.

PRE-APPROVAL FEE LEVELS

Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee.

PROCEDURES

Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by the Fund's Principal Accounting Officer and/or the Chief Audit Executive of Federated Hermes, Inc., only after those individuals have determined that the request or application is consistent with the SEC's rules on auditor independence.

(e)(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrant's Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:

4(b)

Fiscal year ended 2022 – 0%

Fiscal year ended 2021 - 0%

Percentage of services provided to the registrant's Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant's Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.

4(c)

Fiscal year ended 2022 – 0%

Fiscal year ended 2021 – 0%

Percentage of services provided to the registrant's Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant's Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.

4(d)

Fiscal year ended 2022 – 0%

Fiscal year ended 2021 – 0%

Percentage of services provided to the registrant's Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant's Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.

(f) NA

(g) Non-Audit Fees billed to the registrant, the registrant's Adviser, and certain entities controlling, controlled by or under common control with the Adviser:

Fiscal year ended 2022 - $166,939

Fiscal year ended 2021 - $70,893

(h) The registrant's Audit Committee has considered that the provision of non-audit services that were rendered to the registrant's Adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence.

**Item 5.** **Audit Committee of Listed Registrants**

Not Applicable

**Item 6.** **Schedule of Investments**

(a) The registrant's Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.

(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.

**Item 7.** **Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies**

Not Applicable

**Item 8.** **Portfolio Managers of Closed-End Management Investment Companies** 

Not Applicable

**Item 9.** **Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers**

Not Applicable

**Item 10.** **Submission of Matters to a Vote of Security Holders**

No Changes to Report

**Item 11.** **Controls and Procedures**

(a) The registrant's President and Treasurer have concluded that the

registrant's disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.

(b) There were no changes in the registrant's internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

**Item 12.** **Disclosure of Securities Lending Activities for Closed-End Management Investment Companies**

Not Applicable

**Item 13.** **Exhibits**

**(a)(1) Code of Ethics- Not Applicable to this Report.**

[(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.](feif-cert302.htm)

(a)(3) Not Applicable.

[(b) Certifications pursuant to 18 U.S.C. Section 1350](feif-cert906.htm).

**SIGNATURES**

**Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.**

**Registrant <u>Federated Hermes Equity Income Fund, Inc._</u>**

**By <u>/S/ Lori A. Hensler</u>** 

**Lori A. Hensler, Principal Financial Officer**

**Date <u>January 24, 2023</u>**

**Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.**

**By <u>/S/ J. Christopher Donahue</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J. Christopher Donahue, Principal Executive Officer**

**Date <u>January 24, 2023</u>**

**By <u>/S/ Lori A. Hensler</u>**

**Lori A. Hensler, Principal Financial Officer**

**Date <u>January 24, 2023</u>**

## Ex-99.Cert

N-CSR Item 13(a)(2) - Exhibits: Certifications

I, J. Christopher Donahue, certify that:

* I have reviewed this report on Form N-CSR of Federated Hermes Equity
Income Fund, Inc. ("registrant");

* Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;

* Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the financial condition, results of operations, changes in
net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and
for, the periods presented in this report;

* The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940)
and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant
and have:

* designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including
its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report
is being prepared;

* designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

* evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a
date within 90 days prior to the filing date of this report based on such evaluation; and

* disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over financial reporting; and

* The registrant's other certifying officers and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

* all significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability
to record, process, summarize, and report financial information; and

* any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over financial reporting.

Date: January 24, 2023

/S/ J. Christopher Donahue

J. Christopher Donahue, President - Principal Executive Officer

N-CSR Item 13(a)(2) - Exhibits: Certifications

I, Lori A. Hensler, certify that:

* I have reviewed this report on Form N-CSR of Federated Hermes Equity
Income Fund, Inc. ("registrant");

* Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;

* Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the financial condition, results of operations, changes in
net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and
for, the periods presented in this report;

* The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940)
and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant
and have:

* designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including
its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report
is being prepared;

* designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

* evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a
date within 90 days prior to the filing date of this report based on such evaluation; and

* disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over financial reporting; and

* The registrant's other certifying officers and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

* all significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability
to record, process, summarize, and report financial information; and

* any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over financial reporting.

Date: January 24, 2023

/S/ Lori A. Hensler

Lori A. Hensler, Treasurer - Principal Financial Officer

## Ex-99.Cert906

N-CSR Item 13(b) - Exhibits: Certifications

 **SECTION 906 CERTIFICATION**

Pursuant to 18 U.S.C.§ 1350, the undersigned officers of **Federated Hermes Equity Income Fund, Inc.** (the "Registrant"), hereby certify, to the best of our knowledge, that the Registrant's Report on Form N-CSR for the period ended November 30, 2022 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities and Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Dated: <u>January 24, 2023</u>

/s/ J. Christopher Donahue

J. Christopher Donahue

Title: President, Principal Executive Officer

Dated: <u>January 24, 2023</u>

/s/ Lori A. Hensler

Lori A. Hensler

Title: Treasurer, Principal Financial Officer

This certification is being furnished solely pursuant to 18 U.S.C.§ 1350 and is not being filed as part of the Report or as a separate disclosure document.