# EDGAR Filing Document

**Accession Number:** 0001340579
**File Stem:** 0001623632-23-000335
**Filing Date:** 2023-2
**Character Count:** 1416080
**Document Hash:** 5f3295b2e10fc367f20519874848b238
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001623632-23-000335.hdr.sgml**: 20230223

**ACCESSION NUMBER**: 0001623632-23-000335

**CONFORMED SUBMISSION TYPE**: 485BPOS

**PUBLIC DOCUMENT COUNT**: 33

**FILED AS OF DATE**: 20230223

**DATE AS OF CHANGE**: 20230223

**EFFECTIVENESS DATE**: 20230227

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Federated Hermes Managed Pool Series
- **CENTRAL INDEX KEY:** 0001340579
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MA
- **FISCAL YEAR END:** 1130

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-21822
- **FILM NUMBER:** 23658453

**BUSINESS ADDRESS:**
- **STREET 1:** 4000 ERICSSON DRIVE
- **CITY:** WARRENDALE
- **STATE:** PA
- **ZIP:** 15086-7561
- **BUSINESS PHONE:** 1-800-341-7400

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

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Federated Managed Pool Series
- **DATE OF NAME CHANGE:** 20051004
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Federated Hermes Managed Pool Series
- **CENTRAL INDEX KEY:** 0001340579
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MA
- **FISCAL YEAR END:** 1130

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-128884
- **FILM NUMBER:** 23658452

**BUSINESS ADDRESS:**
- **STREET 1:** 4000 ERICSSON DRIVE
- **CITY:** WARRENDALE
- **STATE:** PA
- **ZIP:** 15086-7561
- **BUSINESS PHONE:** 1-800-341-7400

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

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Federated Managed Pool Series
- **DATE OF NAME CHANGE:** 20051004

## Series and Classes Contracts Data

### Federated Hermes Corporate Bond Strategy Portfolio (Series ID: S000010899)

| Class ID   | Class Name                                         | Ticker Symbol   |
|:---|:---|:---|
| C000030208 | Federated Hermes Corporate Bond Strategy Portfolio | FCSPX           |

### Federated Hermes High Yield Strategy Portfolio (Series ID: S000010900)

| Class ID   | Class Name                                     | Ticker Symbol   |
|:---|:---|:---|
| C000030209 | Federated Hermes High Yield Strategy Portfolio | FHYSX           |

### Federated Hermes Mortgage Strategy Portfolio (Series ID: S000010902)

| Class ID   | Class Name                                   | Ticker Symbol   |
|:---|:---|:---|
| C000030211 | Federated Hermes Mortgage Strategy Portfolio | FMBPX           |

?xml version='1.0' encoding='ASCII'? EDGAR HTML

**1933 Act File No. 333-128884**

**1940 Act File No. 811-21822**

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**SECURITIES AND EXCHANGE COMMISSION**

Washington, DC 20549

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**Form N-1A**

**REGISTRATION STATEMENT**

***UNDER***

***THE SECURITIES ACT OF 1933***

☒

**Pre-Effective Amendment No.**

☐

**Post-Effective Amendment No. 80**

☒

**and/or**

**REGISTRATION STATEMENT**

***UNDER***

***THE INVESTMENT COMPANY ACT OF 1940***

☒

**Amendment No. 82**

☒

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**Federated Hermes Managed Pool Series**

**(Exact name of Registrant as Specified in Charter)**

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**Federated Hermes Funds**

4000 Ericsson Drive

Warrendale, PA 15086-7561

(Address of Principal Executive Offices)

**(412) 288-1900**

(Registrant's Telephone Number, including Area Code)

**Peter J. Germain, Esquire**

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15222-3779

(Name and Address of Agent for Service)

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It is proposed that this filing will become effective (check appropriate box):

☐

immediately upon filing pursuant to paragraph (b)

☒

On February 27, 2023 pursuant to paragraph (b)

☐

60 days after filing pursuant to paragraph (a)(1)

☐

On __________ pursuant to paragraph (a)(1)

☐

75 days after filing pursuant to paragraph (a)(2)

☐

On __________ pursuant to paragraph (a)(2) of Rule 485

**If appropriate, check the following:**

☐

This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

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**Prospectus** 

***February 28, 2023***

![](img1650aad11.gif)

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

**Ticker** FCSPX<br>

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Federated Hermes Corporate Bond Strategy Portfolio

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A Portfolio of Federated Hermes Managed Pool Series

A mutual fund seeking to provide total return, by investing primarily in a diversified portfolio of investment-grade, corporate fixed-income securities. The Fund is used to implement certain fixed-income investment strategies for eligible investors in wrap fee, separately managed and other discretionary investment accounts that are advised or sub-advised by Federated Investment Counseling (FIC), a subsidiary of Federated Hermes, Inc. ("Federated Hermes," formerly Federated Investors, Inc.) or its affiliates, or certain other discretionary managers, as well as affiliated investment companies. Shares of the Fund held for an eligible investor may be purchased only at the direction of FIC or other discretionary managers to such wrap fee, separately managed or other discretionary investment accounts.

As with all mutual funds, the Securities and Exchange Commission (SEC) has not approved or disapproved these securities or passed upon the adequacy of this Prospectus. Any representation to the contrary is a criminal offense.

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

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**CONTENTS** 

---

| | |
|:---|:---|
| [Fund Summary Information](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_1) | [1](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_1) |
| [What are the Fund's Investment Strategies?](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_5) | [5](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_5) |
| [What are the Fund's Principal Investments?](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_6) | [6](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_6) |
| [What are the Specific Risks of Investing in the Fund?](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_12) | [12](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_12) |
| [How to Invest in the Fund](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_15) | [15](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_15) |
| [What Do Shares Cost?](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_17) | [17](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_17) |
| [How Does the Fund Price Securities?](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_17) | [17](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_17) |
| [How to Purchase Shares](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_18) | [18](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_18) |
| [How to Redeem Shares](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_18) | [18](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_18) |
| [Account and Share Information](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_20) | [20](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_20) |
| [Who Manages the Fund?](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_21) | [21](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_21) |
| [Financial Information](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_22) | [22](#xx_c4d4c10e-625c-4cfe-b467-893fa0842c91_22) |
| [Appendix A: Hypothetical Investment and Expense Information](#xx_24ede0df-c928-44bc-8d37-a60fd56e888b_1) | [24](#xx_24ede0df-c928-44bc-8d37-a60fd56e888b_1) |

---

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Fund Summary Information

**Federated Hermes Corporate Bond Strategy Portfolio (the "Fund")**

**RISK/RETURN SUMMARY: INVESTMENT OBJECTIVE**

The Fund's investment objective is to provide total return.

**RISK/RETURN SUMMARY: FEES AND EXPENSES**

This table describes the fees and expenses that you may pay if you buy, hold and sell Shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.**

**Shareholder Fees (fees paid directly from your investment)** 

---

| |
|:---|
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |
| Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) |
| Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) |
| Redemption Fee (as a percentage of amount redeemed, if applicable) |
| Exchange Fee |

---

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

**Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)** 

---

| | |
|:---|:---|
| Management Fee | 0.00% |
| Distribution (12b-1) Fee |  |
| Other Expenses | 0.24% |
| Total Annual Fund Operating Expenses | 0.24% |
| Fee Waivers and/or Expense Reimbursements<sup>1</sup> | (0.24)% |
| Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 0.00% |

---

The Adviser will not charge a fee for its advisory services to the Fund. The Adviser contractually agreed to reimburse all expenses of the Fund, excluding extraordinary expenses. Acquired fund fees and expenses are not direct obligations of the Fund and are not contractual reimbursements under the investment advisory contract. Shareholders must approve any change to the contractual reimbursements. The Fund is used to implement certain fixed-income strategies that are offered to Eligible Investors, Eligible Accounts and Affiliated Funds (as such are defined in this Prospectus). Investors should carefully consider the separate fees charged in connection with investment in the Fund.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 for the time periods indicated and then redeem or hold all of your Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that operating expenses are based on the contractual limitation and remain the same. The Example does not reflect sales charges (loads) on reinvested dividends. If these sales charges (loads) were included, your costs would be higher. Although your actual costs and returns may be higher or lower, based on these assumptions your cost would be:

---

| | |
|:---|:---|
| 1 Year | $0 |
| 3 Years | $0 |
| 5 Years | $0 |
| 10 Years | $0 |

---

**Portfolio Turnover** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund Shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 7% of the average value of its portfolio.

**1**

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**RISK/RETURN SUMMARY: INVESTMENTS, RISKS and PERFORMANCE** 

**What are the Fund's Main Investment Strategies?**

The Fund invests primarily in a diversified portfolio of investment-grade, corporate fixed-income securities. While the Fund may invest in securities of any maturity, the Fund's average duration is expected to vary and may range between one and ten years depending on Federated Investment Management Company's (the "Adviser") view of interest rates. The Fund may also invest in Treasury securities, government securities and derivative instruments (such as futures, options and swaps or hybrid instruments) to implement its investment strategies. There can be no assurance that the Fund's use of derivative contracts or hybrid instruments will work as intended. Derivative investments made by the Fund are included within the Fund's 80% policy (as described below) and are calculated at market value. The Fund may invest up to 15% of its net assets in illiquid securities. Some of the corporate fixed-income securities in which the Fund invests are considered to be "foreign securities" as that term is defined in this Prospectus.

Certain of the government securities in which the Fund invests are not backed by the full faith and credit of the U.S. government, such as those issued by the Federal Home Loan Mortgage Corporation ("Freddie Mac"), the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Bank System. These entities are, however, supported through federal subsidies, loans or other benefits. The Fund may also invest in government securities that are supported by the full faith and credit of the U.S. government, such as those issued by the Government National Mortgage Association ("Ginnie Mae"). Finally, the Fund may invest in certain government securities that have no explicit financial support, but which are regarded as having implied support because the federal government sponsors their activities.

The Adviser actively manages the Fund's portfolio seeking total returns over longer time periods in excess of the Fund's benchmark, the Baa (BBB) component of the Bloomberg US Credit Index (BUSCI). The BUSCI is an unmanaged index comprised of corporate bonds or securities represented by the following sectors: industrial, utility and finance, including both U.S. and non-U.S. corporations and non-corporate bonds or securities represented by the following sectors: sovereign, supranational, foreign agencies and foreign local governments. There can be no assurance that the Adviser will be successful in achieving investment returns in excess of the BUSCI. When buying and selling portfolio securities, the Adviser utilizes a four part decision-making process.

First, the Adviser invests the Fund's portfolio seeking the higher relative returns of corporate fixed-income securities, when available, while attempting to limit the associated credit risks. Second, the Adviser selects individual securities that it believes may outperform the Fund's benchmark index. Third, the Adviser may seek to change the Fund's interest rate volatility by lengthening or shortening the Fund's portfolio duration from time to time based on its interest rate outlook. Fourth, the Adviser strategically positions the portfolio based on its expectations for changes in the yield curve.

The Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in corporate fixed-income investments. The Fund will notify shareholders at least 60 days in advance of any change in its investment policies that would enable the fund to normally invest less than 80% of its net assets (plus any borrowings for investment purposes) in corporate fixed-income investments.

**What are the Main Risks of Investing in the Fund?**

All mutual funds take investment risks. Therefore, it is possible to lose money by investing in the Fund. The primary factors that may reduce the Fund's returns include:

◾ **Interest Rate Risk.** Prices of fixed-income securities generally fall when interest rates rise. The longer the duration of a fixed-income security, the more susceptible it is to interest-rate risk. Recent and potential future changes in monetary policy made by central banks and/or their governments are likely to affect the level of interest rates.

◾ **Risk Related to the Economy.** The value of the Fund's portfolio may decline in tandem with a drop in the overall value of the markets in which the Fund invests and/or other markets. Economic, political and financial conditions, industry or economic trends and developments or public health risks, such as epidemics or pandemics, may, from time to time, and for varying periods of time, cause the Fund to experience volatility, illiquidity, shareholder redemptions, or other potentially adverse effects. Among other investments, lower-grade bonds may be particularly sensitive to changes in the economy.

◾ **Issuer Credit Risk.** It is possible that interest or principal on securities will not be paid when due. Such non-payment or default may reduce the value of the Fund's portfolio holdings, its share price and its performance.

◾ **Counterparty Credit Risk.** Credit risk includes the possibility that a party to a transaction involving the Fund will fail to meet its obligations. This could cause the Fund to lose money or to lose the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategy.

◾ **Call Risk.** Call risk is the possibility that an issuer may redeem a fixed-income security before maturity (a call) at a price below its current market price. An increase in the likelihood of a call may reduce the security's price.

**2**

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◾ **Sector Risk.** A substantial part of the Fund's portfolio may be comprised of securities issued or credit enhanced by companies in similar businesses, or with other similar characteristics. As a result, the Fund will be more susceptible to any economic, business, political or other developments which generally affect these issuers.

◾ **Liquidity Risk.** The fixed-income securities in which the Fund invests may be less readily marketable and may be subject to greater fluctuation in price than other securities. Also, market growth at rates greater than dealers' capacity to make markets, as well as regulatory changes or certain other developments, can reduce dealer inventories of securities (such as corporate bonds), which can further constrain liquidity and increase price volatility. Liquidity risk also refers to the possibility that the Fund may not be able to sell a security or close out a derivative contract when it wants to. If this happens, the Fund could incur losses. High levels of shareholder redemptions in response to market conditions also may increase liquidity risk and may negatively impact Fund performance.

◾ **Risk of Foreign Investing.** Because the Fund invests in securities issued by foreign companies and national governments, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than would otherwise be the case.

◾ **Risk of Investing in Derivative Contracts and Hybrid Instruments.** Derivative contracts and hybrid instruments involve risks different from, or possibly greater than, risks associated with investing directly in securities and other traditional investments. Specific risk issues related to the use of such contracts and instruments include valuation and tax issues, increased potential for losses and/or costs to the Fund, and a potential reduction in gains to the Fund. Each of these issues is described in greater detail in this Prospectus. Derivative contracts and hybrid instruments may also involve other risks described in this Prospectus, such as interest rate, credit, liquidity and leverage risks.

◾ **Leverage Risk.** Leverage risk is created when an investment, which includes for example, an investment in a derivative contract, exposes the Fund to a level of risk that exceeds the amount invested. Changes in the value of such an investment magnify the Fund's risk of loss and potential for gain.

◾ **Technology Risk.** The Adviser uses various technologies in managing the Fund, consistent with its investment objective and strategy described in this Prospectus. For example, proprietary and third-party data and systems are utilized to support decision making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance.

The Shares offered by this Prospectus are not deposits or obligations of any bank, are not endorsed or 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.

**Performance: Bar Chart and Table** 

**Risk/Return Bar Chart**

The bar chart and performance table below reflect historical performance data for the Fund and are intended to help you analyze the Fund's investment risks in light of its historical returns. The bar chart shows the variability of the Fund's total returns on a calendar year-by-year basis. The Average Annual Total Return Table shows returns *averaged* over the stated periods, and includes comparative performance information. *The Fund's performance will fluctuate, and past performance (before and after taxes) is not necessarily an indication of future results.* Updated performance information for the Fund is available by calling 1-800-341-7400.

![](fcppro34039_16.jpg)

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

*Within the periods shown in the bar chart, the Fund's highest quarterly return was 11.68% (quarter ended June 30, 2020). Its lowest quarterly return was (7.70)% (quarter ended June 30, 2022).* 

**3**

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**Average Annual Total Return Table**

In addition to Return Before Taxes, Return After Taxes is shown for the Fund to illustrate the effect of federal taxes on Fund returns. *Actual after-tax returns depend on each investor's personal tax situation, and are likely to differ from those shown*. After-tax returns are calculated using a standard set of assumptions. The stated returns assume the highest historical **federal** income and capital gains tax rates. These after-tax returns do **not** reflect the effect of any applicable **state** and **local** taxes. After-tax returns are not relevant to investors holding Shares through a 401(k) plan, an Individual Retirement Account or other tax-advantaged investment plan.

(For the Period Ended December 31, 2022)

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| | | | |
|:---|:---|:---|:---|
| **Fund:** | **1 Year** | **5 Years** | **10 Years** |
| Return Before Taxes | (15.44)% | 1.31% | 2.68% |
| Return After Taxes on Distributions | (16.79)% | (0.33)% | 0.87% |
| Return After Taxes on Distributions and Sale of Fund Shares | (9.07)% | 0.38% | 1.28% |
| **Bloomberg US Credit Index**<sup>1</sup> <br>(Reflects no deduction for fees, expenses or taxes)<br>| (15.26)% | 0.42% | 1.82% |
| **Baa component of the Bloomberg US Credit Index**<sup>2</sup> <br>(Reflects no deduction for fees, expenses or taxes)<br>| (15.94)% | 0.70% | 2.17% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*The Bloomberg US Credit Index is composed of all publicly issued, fixed-rate, nonconvertible, investment-grade corporate debt and a non-corporate component that includes foreign agencies, sovereigns, supranationals and local authorities. Issues are rated at least "Baa" by Moody's Investors Service or "BBB" by Standard & Poor's, if unrated by Moody's.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*The Baa component of the Bloomberg US Credit Index is comprised of corporate bonds or securities represented by the following sectors: industrial, utility and finance, including both U.S. and non-U.S. corporations and non-corporate bonds or securities represented by the following sectors: sovereign, supranational, foreign agencies and foreign local governments.*

**FUND MANAGEMENT** 

The Fund's Investment Adviser is Federated Investment Management Company.

Jerome D. Conner, CFA, Senior Portfolio Manager, has been the Fund's portfolio manager since February of 2010.

Brian S. Ruffner, Senior Portfolio Manager, has been the Fund's portfolio manager since February of 2018.

**Purchase and Sale of Fund Shares** 

There is no required minimum initial or subsequent investment amount to invest in Fund Shares.

Shares of the Fund held for an Eligible Investor (as defined below) may be purchased only at the direction of Federated Investment Counseling (FIC), a subsidiary of Federated Hermes, Inc. ("Federated Hermes") or another Discretionary Manager of the Eligible Account (see "How to Invest in the Fund"). To the extent the Fund is permitted as an investment option for an Affiliated Fund (as defined below), Shares also may be purchased and redeemed at the discretion of an Affiliated Fund's adviser. Shares of the Fund may be purchased any day the NYSE is open. An account may be established and Shares purchased by submitting an Account Application and purchase request in good order to the Fund's Transfer Agent, SS&C GIDS, Inc. Shares of the Fund may be redeemed any day the NYSE is open. Redemption requests should be made in accordance with procedures established by the Transfer Agent.

**Tax Information** 

The Fund's distributions are taxable as ordinary income or capital gains except when your investment is through a 401(k) plan, an Individual Retirement Account or other tax-advantaged investment plan.

**Payments to DISCRETIONARY MANAGERS AND OTHER FINANCIAL INTERMEDIARIES** 

Shares of the Fund held for an Eligible Investor may be purchased only at the direction of FIC or another Discretionary Manager of the Eligible Account. Discretionary Managers receive no fee from the Fund for their services. If you purchase the Fund through a Discretionary Manager, the Fund and/or its related companies do not pay the Discretionary Manager for the sale of Fund Shares and related services. Ask your salesperson or visit your Discretionary Manager's website for more information.

**4**

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What are the Fund's Investment Strategies?

The Fund's investment objective is to provide total return. While there is no assurance that the Fund will achieve its investment objective, it endeavors to do so by following the principal strategies and policies described in this Prospectus. The Fund's Statement of Additional Information (SAI) provides information about the Fund's non-principal strategies.

The Fund pursues its investment objective by investing primarily in a diversified portfolio of investment-grade, corporate fixed-income securities. Investment-grade securities are rated at the time of purchase in one of the four highest categories (BBB or higher) by a nationally recognized statistical rating organization (NRSRO), or if unrated, are of comparable quality as determined by the Adviser. The Fund may also invest in Treasury securities, government securities, and derivative instruments (such as futures, options and swaps or hybrid instruments) to implement its investment strategies. The Fund may invest up to 15% of its net assets in illiquid securities. A description of the various types of securities in which the Fund invests, and their risks, immediately follows this strategy section.

The Adviser actively manages the Fund's portfolio seeking total returns over longer time periods in excess of the Fund's benchmark, the Baa component of the Bloomberg US Credit Index (BUSCI). The BUSCI is an unmanaged index comprised of corporate bonds or securities represented by the following sectors: industrial, utility and finance, including both U.S. and non-U.S. corporations and non-corporate bonds or securities represented by the following sectors: sovereign, supranational, foreign agencies and foreign local governments. There can be no assurance that the Adviser will be successful in achieving investment returns in excess of the BUSCI.

When buying and selling portfolio securities, the Adviser utilizes a four part decision-making process:

First, the Adviser invests the Fund's portfolio seeking the higher relative returns of corporate fixed-income securities when available, while attempting to limit the associated credit risks. Corporate debt securities generally offer higher yields than U.S. government securities to compensate for credit risk. The Adviser attempts to manage the Fund's credit risk by selecting corporate fixed-income securities that make default in the payment of principal and interest less likely. The Adviser uses corporate earnings analysis to determine which business sectors and credit ratings are most advantageous for investment by the Fund.

Second, the Adviser selects individual securities that it believes may outperform the Fund's benchmark index. For example, the Adviser employs a fundamental analysis to determine the best corporate debt securities within specific credit quality constraints. In selecting securities, the Adviser assesses whether the Fund will be adequately compensated for assuming the risks (such as credit risk) of a particular security by comparing the security to other securities. The Adviser continually analyzes a variety of economic and market indicators in order to arrive at the projected yield "spread" of each security type. (The spread is the difference between the yield of a security versus the yield of a U.S. Treasury security with a comparable average life.) The security's projected spread is weighed against the security's credit risk in order to complete the analysis.

In selecting individual corporate fixed-income securities, the Adviser analyzes a company's business, competitive position and financial condition to assess whether the security's credit risk is commensurate with its potential return. Some of the corporate fixed-income securities in which the Fund invests are considered to be "foreign securities," as that term is defined in this Prospectus. For example, a corporate debt security will be treated as a "foreign security" if the issuer derived in its most current fiscal year at least 50% of its total assets, capitalization, gross revenue or profit from goods produced, services performed or sales made in another country. The foreign securities in which the Fund invests will be predominately denominated in the U.S. dollar. To the extent non-U.S., corporate fixed-income securities are purchased in their local currency, hedging strategies will be used to seek to mitigate currency risk.

Third, the Adviser may seek to change the Fund's interest rate volatility by lengthening or shortening the Fund's portfolio duration from time to time based on its interest rate outlook. "Duration" measures the sensitivity of a security's price to changes in interest rates. The greater the portfolio's average duration, the greater the change in the portfolio's value in response to a change in market interest rates. While the Fund may invest in securities of any maturity, the Fund's average duration is expected to vary and may range between one and ten years depending on the Adviser's view of interest rates. For example, if interest rates rise by one percentage point (in a parallel shift) the net asset value (NAV) of a fund with an average duration of ten years theoretically would decline about 10.0%. The above example assumes that all relevant factors that could affect the value of a fund other than interest rates, remain unchanged.

If the Adviser expects interest rates to decline, it will generally lengthen the Fund's duration. If the Adviser expects interest rates to increase, it will generally shorten the Fund's duration. The Adviser formulates its interest rate outlook and otherwise attempts to anticipate changes in economic and market conditions by analyzing a variety of factors, such as:

◾ current and expected U.S. growth;

◾ current and expected interest rates and inflation;

◾ the Federal Reserve Board's monetary policy; and

◾ changes in the supply of or demand for U.S. government securities.

**5**

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Fourth, the Adviser strategically positions the portfolio based on its expectations for changes in the yield curve. The Adviser tries to combine individual portfolio securities with different durations to take advantage of relative changes in interest rates. Relative changes in interest rates may occur whenever longer-term interest rates move more, less or in a different direction than shorter-term interest rates.

The Fund may use derivative contracts and/or hybrid instruments to implement elements of its investment strategy. For example, the Fund may use derivative contracts or hybrid instruments to increase or decrease the portfolio's exposure to the investment(s) underlying the derivative or hybrid instrument in an attempt to benefit from changes in the value of the underlying investment(s). Additionally, by way of example, the Fund may use derivative contracts in an attempt to:

◾ increase or decrease the effective duration of the Fund portfolio;

◾ obtain premiums from the sale of derivative contracts;

◾ realize gains from trading a derivative contract; or

◾ hedge against potential losses.

There can be no assurance that the Fund's use of derivative contracts or hybrid instruments will work as intended. Derivative investments made by the Fund are included within the Fund's 80% policy (as described below) and are calculated at market value.

The Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in corporate fixed-income investments. The Fund will notify shareholders at least 60 days in advance of any change in its investment policies that would enable the fund to normally invest less than 80% of its net assets (plus any borrowings for investment purposes) in corporate fixed-income investments.

**Temporary Investments** 

The Fund may temporarily depart from its principal investment strategies by investing its assets in cash and shorter-term debt securities and similar obligations. It may do this to minimize potential losses and maintain liquidity to meet shareholder redemptions during adverse market conditions. This may cause the Fund to give up greater investment returns to maintain the safety of principal, that is, the original amount invested by shareholders.

What are the Fund's Principal Investments?

The following provides general information on the Fund's principal investments. The Fund's Statement of Additional Information (SAI) provides information about the Fund's non-principal investments and may provide additional information about the Fund's principal investments.

**Fixed-Income Securities** 

Fixed-income securities pay interest, dividends or distributions at a specified rate. The rate may be a fixed percentage of the principal or may be adjusted periodically. In addition, the issuer of a fixed-income security must repay the principal amount of the security, normally within a specified time. Fixed-income securities provide more regular income than equity securities. However, the returns on fixed-income securities are limited and normally do not increase with the issuer's earnings. This limits the potential appreciation of fixed-income securities as compared to equity securities.

A security's yield measures the annual income earned on a security as a percentage of its price. A security's yield will increase or decrease depending upon whether it costs less (a "discount") or more (a "premium") than the principal amount. If the issuer may redeem the security before its scheduled maturity, the price and yield on a discount or premium security may change based upon the probability of an early redemption. Securities with higher risks generally have higher yields.

The following describes the types of fixed-income securities in which the Fund principally invests:

**Corporate Debt Securities (A Type of Fixed-Income Security)** 

Corporate debt securities are fixed-income securities issued by businesses. Notes, bonds, debentures and commercial paper are the most prevalent types of corporate debt securities. The Fund may also purchase interests in bank loans to companies. The credit risks of corporate debt securities vary widely among issuers.

In addition, the credit risk of an issuer's debt security may vary based on its priority for repayment. For example, higher ranking ("senior") debt securities have a higher priority than lower ranking ("subordinated") securities. This means that the issuer might not make payments on subordinated securities while continuing to make payments on senior securities. In addition, in the event of bankruptcy, holders of senior securities may receive amounts otherwise payable to the holders of subordinated securities. Some subordinated securities, such as trust-preferred and capital-securities notes, also permit the issuer to defer payments under certain circumstances. For example, insurance companies issue securities known as surplus notes that permit the insurance company to defer any payment that would reduce its capital below regulatory requirements.

**Treasury Securities (A Type of Fixed-Income Security)** 

Treasury securities are direct obligations of the federal government of the United States. Treasury securities are generally regarded as having minimal credit risks.

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**Government Securities (A Type of Fixed-Income Security)** 

Government securities are issued or guaranteed by a federal agency or instrumentality acting under federal authority. Some government securities, including those issued by Government National Mortgage Association ("Ginnie Mae"), are supported by the full faith and credit of the United States and are guaranteed only as to the timely payment of interest and principal.

Other government securities receive support through federal subsidies, loans or other benefits, but are not backed by the full faith and credit of the United States. For example, the U.S. Treasury is authorized to purchase specified amounts of securities issued by (or otherwise make funds available to) the Federal Home Loan Bank System, Federal Home Loan Mortgage Corporation ("Freddie Mac") and Federal National Mortgage Association ("Fannie Mae") in support of such obligations.

Some government agency securities have no explicit financial support and are supported only by the credit of the applicable agency, instrumentality or corporation. The U.S. government has provided financial support to Freddie Mac and Fannie Mae, but there is no assurance that it will support these or other agencies in the future.

The Fund treats mortgage-backed securities guaranteed by a federal agency or instrumentality as government securities. Although such a guarantee protects against credit risk, it does not eliminate it entirely or reduce other risks.

**Zero-Coupon Securities (A Type of Fixed-Income Security)** 

Zero-coupon securities do not pay interest or principal until final maturity unlike debt securities that provide periodic payments of interest (referred to as a coupon payment). Investors buy zero-coupon securities at a price below the amount payable at maturity. The difference between the purchase price and the amount paid at maturity represents interest on the zero-coupon security. Investors must wait until maturity to receive interest and principal, which increases the interest rate and credit risks of a zero-coupon security. A zero-coupon, step-up security converts to a coupon security before final maturity.

There are many forms of zero-coupon securities. Some are issued at a discount and are referred to as zero-coupon or capital appreciation bonds. Others are created from interest-bearing bonds by separating the right to receive the bond's coupon payments from the right to receive the bond's principal due at maturity, a process known as coupon stripping. Treasury STRIPs, IOs and POs are the most common forms of stripped zero-coupon securities. In addition, some securities give the issuer the option to deliver additional securities in place of cash interest payments, thereby increasing the amount payable at maturity. These are referred to as pay-in-kind, PIK securities, or toggle securities.

**Foreign Securities** 

Foreign securities are securities of issuers based outside the United States. To the extent a Fund invests in securities included in its applicable broad-based securities market index, the Fund may consider an issuer to be based outside the United States if the applicable index classifies the issuer as based outside the United States. Accordingly, the Fund may consider an issuer to be based outside the United States if the issuer satisfies at least one, but not necessarily all, of the following:

◾ it is organized under the laws of, or has its principal office located in, another country;

◾ the principal trading market for its securities is in another country;

◾ it (directly or through its consolidated subsidiaries) derived in its most current fiscal year at least 50% of its total assets, capitalization, gross revenue or profit from goods produced, services performed or sales made in another country; or

◾ it is classified by an applicable index as based outside the United States.

Foreign securities are primarily denominated in foreign currencies. However, the Fund generally invests in foreign securities denominated in U.S. dollars. Along with the risks normally associated with domestic securities of the same type, foreign securities are subject to currency risks and risks of foreign investing. Trading in certain foreign markets is also subject to liquidity risks.

**Foreign Government Securities (A Type of Foreign Fixed-Income Security)** 

Foreign government securities generally consist of fixed-income securities supported by national, state or provincial governments or similar political subdivisions. Foreign government securities also include debt obligations of supranational entities, such as international organizations designed or supported by governmental entities to promote economic reconstruction or development, international banking institutions and related government agencies. Examples of these include, but are not limited to, the International Bank for Reconstruction and Development (the "World Bank"), the Asian Development Bank, the European Investment Bank and the Inter-American Development Bank.

Foreign government securities also include fixed-income securities of quasi-governmental agencies that are either issued by entities owned by a national, state or equivalent government or are obligations of a political unit that are not backed by the national government's full faith and credit. Further, foreign government securities include mortgage-related securities issued or guaranteed by national, state or provincial governmental instrumentalities, including quasi-governmental agencies.

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**ILLIQUID INVESTMENTS** 

Illiquid investments are investments that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. These may include private placements, repurchase agreements that the Fund cannot dispose of within seven days and securities eligible for resale under Rule 144A of the Securities Act of 1933.

**Derivative Contracts** 

Derivative contracts are financial instruments that derive their value from underlying securities, commodities, currencies, indices, or other assets or instruments, including other derivative contracts (each a "Reference Instrument" and collectively, "Reference Instruments"). The most common types of derivative contracts are swaps, futures and options, and major asset classes include interest rates, equities, commodities and foreign exchange. Each party to a derivative contract may sometimes be referred to as a "counterparty." Some derivative contracts require payments relating to an actual, future trade involving the Reference Instrument. These types of derivatives are frequently referred to as "physically settled" derivatives. Other derivative contracts require payments relating to the income or returns from, or changes in the market value of, a Reference Instrument. These types of derivatives are known as "cash-settled" derivatives since they require cash payments in lieu of delivery of the Reference Instrument.

Many derivative contracts are traded on exchanges. In these circumstances, the relevant exchange sets all the terms of the contract except for the price. Parties to an exchange-traded derivative contract make payments through the exchange. Most exchanges require traders to maintain margin accounts through their brokers to cover their potential obligations to the exchange. Parties to the contract make (or collect) daily payments to the margin accounts to reflect losses (or gains) in the value of their contracts. This protects traders against a potential default by their counterparty. Trading contracts on an exchange also allows traders to hedge or mitigate certain risks or carry out more complex trading strategies by entering into offsetting contracts.

The Fund may also trade derivative contracts over-the-counter (OTC), meaning off-exchange, in transactions negotiated directly between the Fund and an eligible counterparty, which may be a financial institution. OTC contracts do not necessarily have standard terms, so they may be less liquid and more difficult to close out than exchange-traded derivative contracts. In addition, OTC contracts with more specialized terms may be more difficult to value than exchange-traded contracts, especially in times of financial stress.

The market for swaps and other OTC derivatives was largely unregulated prior to the enactment of federal legislation known as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"). Regulations enacted by the Commodity Futures Trading Commission (the "CFTC") under the Dodd-Frank Act require the Fund to clear certain types of swap contracts (including certain interest rate and credit default swaps) through a central clearinghouse known as a derivatives clearing organization (DCO).

To clear a swap through a DCO, the Fund will submit the contract to, and post margin with, a futures commission merchant (FCM) that is a clearinghouse member. The Fund may enter into the swap with a counterparty other than the FCM and arrange for the contract to be transferred to the FCM for clearing or enter into the contract with the FCM itself. If the Fund must centrally clear a transaction, the CFTC's regulations also generally require that the swap be executed on a registered exchange (either a designated contract market (DCM) or swap execution facility (SEF)). Central clearing is presently required only for certain swaps; the CFTC is expected to impose a mandatory central clearing requirement for additional derivative instruments over time.

DCOs, DCMs, SEFs and FCMs are all subject to regulatory oversight by the CFTC. In addition, certain derivative market participants that act as market makers and engage in a significant amount of "dealing" activity are also required to register as swap dealers with the CFTC. Among other things, swap dealers are subject to minimum capital requirements and business conduct standards and must also post and collect initial and variation margin on uncleared swaps with certain of their counterparties. Because of this, if the Fund enters into uncleared swaps with any swap dealers, it may be subject to initial and variation margin requirements that could impact the Fund's ability to enter into swaps in the OTC market, including making transacting in uncleared swaps significantly more expensive.

At this point in time, most of the Dodd-Frank Act has been fully implemented, though a small number of remaining rulemakings are unfinished or are subject to phase-in periods. Any future regulatory or legislative activity would not necessarily have a direct, immediate effect upon the Fund, though it is within the realm of possibility that, upon implementation of these measures or any future measures, they could potentially limit or completely restrict the ability of the Fund to use these instruments as a part of its investment strategy, increase the costs of using these instruments or make them less effective.

Depending on how the Fund uses derivative contracts and the relationships between the market value of a derivative contract and the Reference Instrument, derivative contracts may increase or decrease the Fund's exposure to the risks of the Reference Instrument and may also expose the Fund to liquidity and leverage risks. OTC contracts also expose the Fund to credit risks in the event that a counterparty defaults on the contract, although this risk may be mitigated by submitting the contract for clearing through a DCO, or certain other factors, such as collecting margin from the counterparty.

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As discussed above, a counterparty's exposure under a derivative contract may in some cases be required to be secured with initial and/or variation margin (a form of "collateral").

The Fund may invest in a derivative contract if it is permitted to own, invest in, or otherwise have economic exposure to the Reference Instrument. The Fund is not required to own a Reference Instrument in order to buy or sell a derivative contract relating to that Reference Instrument. The Fund may trade in the following specific types and/or combinations of derivative contracts:

**Futures Contracts (A Type of Derivative)** 

Futures contracts provide for the future sale by one party and purchase by another party of a specified amount of a Reference Instrument at a specified price, date and time. Entering into a contract to buy a Reference Instrument is commonly referred to as buying a contract or holding a long position in the asset. Entering into a contract to sell a Reference Instrument is commonly referred to as selling a contract or holding a short position in the Reference Instrument. Futures contracts are considered to be commodity contracts. The Adviser has claimed an exclusion from the definition of the term "commodity pool operator" under the Commodity Exchange Act with respect to the Fund, and therefore is not subject to registration or regulation as a commodity pool operator under the Act with respect to the Fund. Futures contracts traded OTC are frequently referred to as forward contracts. The Fund can buy or sell financial futures (such as interest rate futures, index futures and security futures), as well as currency futures and currency forward contracts.

**Option Contracts (A Type of Derivative)** 

Option contracts (also called "options") are rights to buy or sell a Reference Instrument for a specified price (the "exercise price") during, or at the end of, a specified period. The seller (or "writer") of the option receives a payment, or premium, from the buyer, which the writer keeps regardless of whether the buyer uses (or exercises) the option. A call option gives the holder (buyer) the right to buy the Reference Instrument from the seller (writer) of the option. A put option gives the holder the right to sell the Reference Instrument to the writer of the option. Options may be bought or sold on a wide variety of Reference Instruments. Options that are written on futures contracts will be subject to margin requirements similar to those applied to futures contracts.

**Swap Contracts (A Type of Derivative)** 

A swap contract (also known as a "swap") is a type of derivative contract in which two parties agree to pay each other (swap) the returns derived from Reference Instruments. Swaps do not always involve the delivery of the Reference Instruments by either party, and the parties might not own the Reference Instruments underlying the swap. The payments are usually made on a net basis so that, on any given day, the Fund would receive (or pay) only the amount by which its payment under the contract is less than (or exceeds) the amount of the other party's payment. Swap agreements are sophisticated instruments that can take many different forms and are known by a variety of names. Common types of swaps in which the Fund may invest include interest rate swaps, caps and floors, total return swaps, credit default swaps and volatility swaps.

**Total Return Swaps** 

A total return swap is an agreement between two parties whereby one party agrees to make payments of the total return from a Reference Instrument (or a basket of such instruments) during the specified period, in return for payments equal to a fixed or floating rate of interest or the total return from another Reference Instrument. Alternately, a total return swap can be structured so that one party will make payments to the other party if the value of a Reference Instrument increases, but receive payments from the other party if the value of that instrument decreases.

**Credit Default Swaps** 

A credit default swap (CDS) is an agreement between two parties whereby one party (the "Protection Buyer") agrees to make payments over the term of the CDS to the other party (the "Protection Seller"), provided that no designated event of default, restructuring or other credit related event (each a "Credit Event") occurs with respect to Reference Instrument that is usually a particular bond, loan or the unsecured credit of an issuer, in general (the "Reference Obligation"). Many CDS are physically settled, which means that if a Credit Event occurs, the Protection Seller must pay the Protection Buyer the full notional value, or "par value," of the Reference Obligation in exchange for delivery by the Protection Buyer of the Reference Obligation or another similar obligation issued by the issuer of the Reference Obligation (the "Deliverable Obligation"). The Counterparties agree to the characteristics of the Deliverable Obligation at the time that they enter into the CDS. Alternately, a CDS can be "cash settled," which means that, upon the occurrence of a Credit Event, the Protection Buyer will receive a payment from the Protection Seller equal to the difference between the par amount of the Reference Obligation and its market value at the time of the Credit Event. The Fund may be either the Protection Buyer or the Protection Seller in a CDS. If the Fund is a Protection Buyer and no Credit Event occurs, the Fund will lose its entire investment in the CDS (i.e., an amount equal to the payments made to the Protection Seller over the term of the CDS). However, if a Credit Event occurs, the Fund (as Protection Buyer) will deliver the Deliverable Obligation and receive a payment equal to the full notional value of the Reference Obligation, even though the Reference Obligation may have little or no value. If the Fund is the Protection Seller and no Credit Event occurs, the Fund will receive a fixed rate of income

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throughout the term of the CDS. However, if a Credit Event occurs, the Fund (as Protection Seller) will pay the Protection Buyer the full notional value of the Reference Obligation and receive the Deliverable Obligation from the Protection Buyer. A CDS may involve greater risks than if the Fund invested directly in the Reference Obligation. For example, a CDS may increase credit risk since the Fund has exposure to both the issuer of the Reference Obligation and the Counterparty to the CDS.

**Investing in Securities of Other Investment Companies** 

The Fund may invest its assets in securities of other investment companies, including the securities of affiliated money market funds, as an efficient means of implementing its investment strategies, managing its uninvested cash and/or other investment reasons consistent with the Fund's investment objective and investment strategies. These other investment companies are managed independently of the Fund and incur additional fees and/or expenses which would, therefore, be borne indirectly by the Fund in connection with any such investment. These investments also can create conflicts of interests for the Adviser to the Fund and the investment adviser to the acquired fund. For example, a conflict of interest can arise due to the possibility that the Adviser to the Fund could make a decision to redeem the Fund's investment in the acquired fund. In the case of an investment in an affiliated fund, a conflict of interest can arise if, because of the Fund's investment in the acquired fund, the acquired fund is able to garner more assets, thereby growing the acquired fund and increasing the management fees received by the investment adviser to the acquired fund, which would either be the Adviser or an affiliate of the Adviser. However, the Adviser believes that the benefits and efficiencies of making investments in other investment companies should outweigh the potential additional fees and/or expenses and resulting conflicts of interest. The Fund may invest in money market securities directly.

**OTHER INVESTMENTS, TRANSACTIONS, TECHNIQUES**

**Securities Lending** 

The Fund may lend portfolio securities to borrowers that the Adviser deems creditworthy. In return, the Fund receives cash or liquid securities from the borrower as collateral. The borrower must furnish additional collateral if the market value of the loaned securities increases. Also, the borrower must pay the Fund the equivalent of any dividends or interest received on the loaned securities.

The Fund will reinvest cash collateral in securities that qualify as an acceptable investment for the Fund. However, the Fund must pay interest to the borrower for the use of cash collateral. An acceptable investment into which the Fund may reinvest cash collateral includes, among other acceptable investments, securities of affiliated money market funds (including affiliated institutional prime money market funds with a "floating" net asset value that can impose redemption fees and liquidity gates, impose certain operational impediments to investing cash collateral, and, if net asset value decreases, result in the Fund having to cover the decrease in the value of the cash collateral).

Loans are subject to termination at the option of the Fund or the borrower. The Fund will not have the right to vote on securities while they are on loan. However, the Fund will attempt to terminate a loan in an effort to reacquire the securities in time to vote on matters that are deemed to be material by the Adviser. There can be no assurance that the Fund will have sufficient notice of such matters to be able to terminate the loan in time to vote thereon. The Fund may pay administrative and custodial fees in connection with a loan and may pay a negotiated portion of the interest earned on the cash collateral to a securities lending agent or broker. Securities lending activities are subject to interest rate risks and counterparty credit risks.

**Repurchase Agreements** 

Repurchase agreements are transactions in which the Fund buys a security from a dealer or bank and agrees to sell the security back at a mutually agreed-upon time and price. The repurchase price exceeds the sale price, reflecting the Fund's return on the transaction. This return is unrelated to the interest rate on the underlying security. The Fund will enter into repurchase agreements only with banks and other recognized financial institutions, such as securities dealers, deemed creditworthy by the Adviser.

The Fund's custodian or sub-custodian will take possession of the securities subject to repurchase agreements. The Adviser or sub-custodian will monitor the value of the underlying security each day to ensure that the value of the security always equals or exceeds the repurchase price.

Repurchase agreements are subject to credit risks.

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**Reverse Repurchase Agreements** 

Reverse repurchase agreements (which are considered a type of special transaction for asset segregation or asset coverage purposes) are repurchase agreements in which the Fund is the seller (rather than the buyer) of the securities, and agrees to repurchase them at an agreed upon time and price. A reverse repurchase agreement may be viewed as a type of borrowing by the Fund. Reverse repurchase agreements are subject to credit risks. In addition, reverse repurchase agreements create leverage risks because the Fund must repurchase the underlying security at a higher price, regardless of the market value of the security at the time of repurchase.

**Derivatives Regulation and Asset Coverage** 

The regulation of the U.S. and non-U.S. derivatives markets has undergone substantial change in recent years and such change may continue. In addition, effective August 19, 2022, Rule 18f-4 (the "Derivatives Rule") under the Investment Company Act of 1940, as amended (the "1940 Act"), replaced the asset segregation framework previously used by funds to comply with limitations on leverage imposed by the 1940 Act. The Derivatives Rule generally mandates that a fund either limit derivatives exposure to 10% or less of its net assets, or in the alternative implement: (i) limits on leverage calculated based value-at-risk (VAR); (ii) a written derivatives risk management program (DRMP) administered by a derivatives risk manager appointed by the Fund's Board, including a majority of the independent Board members, that is periodically reviewed by the Board; and (iii) new reporting and recordkeeping requirements.

**Delayed Delivery Transactions** 

Delayed delivery transactions, including when-issued transactions, are arrangements in which the Fund buys securities for a set price, with payment and delivery of the securities scheduled for a future time. During the period between purchase and settlement, no payment is made by the Fund to the issuer and no interest accrues to the Fund. The Fund records the transaction when it agrees to buy the securities and reflects their value in determining the price of its Shares. Settlement dates may be a month or more after entering into these transactions so that the market values of the securities bought may vary from the purchase prices. Therefore, delayed delivery transactions create interest rate risks for the Fund. Delayed delivery transactions also involve credit risks in the event of a counterparty default. These transactions create leverage risks.

**Hybrid Instruments** 

Hybrid instruments combine elements of two different kinds of securities or financial instruments (such as a derivative contract). Frequently, the value of a hybrid instrument is determined by reference to changes in the value of a Reference Instrument (that is a designated security, commodity, currency, index or other asset or instrument including a derivative contract). The Fund may use hybrid instruments only in connection with permissible investment activities. Hybrid instruments can take on many forms including, but not limited to, the following forms. First, a common form of a hybrid instrument combines elements of a derivative contract with those of another security (typically a fixed-income security). In this case all or a portion of the interest or principal payable on a hybrid security is determined by reference to changes in the price of a Reference Instrument. Second, hybrid instruments may include convertible securities with conversion terms related to a Reference Instrument.

Depending on the type and terms of the hybrid instrument, its risks may reflect a combination of the risks of investing in the Reference Instrument with the risks of investing in other securities, currencies and derivative contracts. Thus, an investment in a hybrid instrument may entail significant risks in addition to those associated with traditional investments or the Reference Instrument. Hybrid instruments are also potentially more volatile than traditional securities or the Reference Instrument. Moreover, depending on the structure of the particular hybrid, it may expose the Fund to leverage risks or carry liquidity risks.

**Credit Linked Note (A Type of Hybrid Instrument)** 

A credit linked note (CLN) is a type of hybrid instrument in which a special purpose entity issues a structured note (the "Note Issuer") with respect to which the Reference Instrument is a single bond, a portfolio of bonds or the unsecured credit of an issuer, in general (each a "Reference Credit"). The purchaser of the CLN (the "Note Purchaser") invests a par amount and receives a payment during the term of the CLN that equals a fixed or floating rate of interest equivalent to a high rated funded asset (such as a bank certificate of deposit) plus an additional premium that relates to taking on the credit risk of the Reference Credit. Upon maturity of the CLN, the Note Purchaser will receive a payment equal to: (i) the original par amount paid to the Note Issuer, if there is no occurrence of a designated event of default, restructuring or other credit event (each a "Credit Event") with respect to the issuer of the Reference Credit; or (ii) the market value of the Reference Credit, if a Credit Event has occurred. Depending upon the terms of the CLN, it is also possible that the Note

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Purchaser may be required to take physical delivery of the Reference Credit in the event of Credit Event. Most credit linked notes use a corporate bond (or a portfolio of corporate bonds) as the Reference Credit. However, almost any type of fixed-income security (including foreign government securities), index or derivative contract (such as a credit default swap) can be used as the Reference Credit.

**Investment Ratings for Investment-Grade Securities** 

The Adviser will determine whether a security is investment grade based upon the credit ratings given by one or more NRSROs. For example, Standard & Poor's, an NRSRO, assigns ratings to investment-grade securities (AAA, AA, A and BBB including modifiers, sub-categories and gradations) based on their assessment of the likelihood of the issuer's inability to pay interest or principal (default) when due on each security. Lower credit ratings correspond to higher credit risk. If a security has not received a rating, the Fund must rely entirely upon the Adviser's credit assessment that the security is comparable to investment grade. The presence of a ratings modifier, sub-category or gradation (for example, a (+) or (-)) is intended to show relative standing within the major rating categories and does not affect the security credit rating for purposes of the Fund's investment parameters. If a security is downgraded below the minimum quality grade discussed above, the Adviser will reevaluate the security, but will not be required to sell it.

**Additional Information Regarding the Security Selection Process** 

As part of analysis in its security selection process, among other factors, the Adviser also evaluates whether environmental, social and governance factors could have a positive or negative impact on the risk profiles of many issuers or guarantors in the universe of securities in which the Fund may invest. The Adviser may also consider information derived from active engagements conducted by its in-house stewardship team with certain issuers or guarantors on environmental, social and governance topics. This qualitative analysis does not automatically result in including or excluding specific securities but may be used by Federated Hermes as an additional input in its primary analysis.

What are the Specific Risks of Investing in the Fund?

The following provides general information on the risks associated with the Fund's principal investments. Any additional risks associated with the Fund's non-principal investments are described in the Fund's SAI. The Fund's SAI also may provide additional information about the risks associated with the Fund's principal investments.

**Interest Rate Risk** 

Prices of fixed-income securities rise and fall in response to changes in interest rates. Generally, when interest rates rise, prices of fixed-income securities fall. However, market factors, such as the demand for particular fixed-income securities, may cause the price of certain fixed-income securities to fall while the prices of other securities rise or remain unchanged.

The longer the duration of a fixed-income security, the more susceptible it is to interest rate risk. The duration of a fixed-income security may be equal to or shorter than the stated maturity of a fixed-income security. Recent and potential future changes in monetary policy made by central banks and/or their governments are likely to affect the level of interest rates. Duration measures the price sensitivity of a fixed-income security given a change in interest rates. For example, if a fixed-income security has an effective duration of three years, a 1% increase in general interest rates would be expected to cause the security's value to decline about 3% while a 1% decrease in general interest rates would be expected to cause the security's value to increase about 3%.

**RISK RELATED TO THE ECONOMY** 

The value of the Fund's portfolio may decline in tandem with a drop in the overall value of the markets in which the Fund invests and/or other markets based on negative developments in the U.S. and global economies. Economic, political and financial conditions, or industry or economic trends and developments, may, from time to time, and for varying periods of time, cause volatility, illiquidity or other potentially adverse effects in the financial markets, including the fixed-income market. The commencement, continuation or ending of government policies and economic stimulus programs, changes in monetary policy, increases or decreases in interest rates, or other factors or events that affect the financial markets, including the fixed-income markets, may contribute to the development of or increase in volatility, illiquidity, shareholder redemptions and other adverse effects which could negatively impact the Fund's performance. For example, the value of certain portfolio securities may rise or fall in response to changes in interest rates, which could result from a change in government policies, and has the potential to cause investors to move out of certain portfolio securities, including fixed-income securities, on a large scale. This may increase redemptions from funds that hold large amounts of certain securities and may result in decreased liquidity and increased volatility in the financial markets. Market factors, such as the demand for particular portfolio securities, may cause the price of certain portfolio securities to fall while the prices of other securities rise or remain unchanged. Among other investments, lower-grade bonds may be particularly sensitive to changes in the economy.

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**Epidemic and Pandemic Risk** 

An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread globally. 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, 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 instruments. Any such impact could adversely affect the Fund's performance.

**ISSUER Credit Risk** 

It is possible that interest or principal on securities will not be paid when due. Such non-payment or default may reduce the value of the Fund's portfolio holdings, its share price and its performance.

Many fixed-income securities receive credit ratings from nationally recognized statistical rating organizations (NRSROs) such as Fitch Rating Service, Moody's Investor Services, Inc. and Standard & Poor's that assign ratings to securities by assessing the likelihood of an issuer and/or guarantor default. Higher credit ratings correspond to lower perceived credit risk and lower credit ratings correspond to higher perceived credit risk. Credit ratings may be upgraded or downgraded from time to time as an NRSRO's assessment of the financial condition of a party obligated to make payments with respect to such securities and credit risk changes. The impact of any credit rating downgrade can be uncertain. Credit rating downgrades may lead to increased interest rates and volatility in financial markets, which in turn could negatively affect the value of the Fund's portfolio holdings, its share price and its investment performance. Credit ratings are not a guarantee of quality. Credit ratings may lag behind the current financial conditions of the issuer and/or guarantor and do not provide assurance against default or other loss of money. Credit ratings do not protect against a decline in the value of a security. If a security has not received a rating, the Fund must rely entirely upon the Adviser's credit assessment.

Fixed-income securities generally compensate for greater credit risk by paying interest at a higher rate. The difference between the yield of a security and the yield of a U.S. Treasury security or other appropriate benchmark with a comparable maturity (the "spread") measures the additional interest paid for risk. Spreads may increase generally in response to adverse economic or market conditions. A security's spread may also increase if the security's rating is lowered, or the security is perceived to have an increased credit risk. An increase in the spread will cause the price of the security to decline if interest rates remain unchanged.

**Counterparty Credit Risk** 

Credit risk includes the possibility that a party to a transaction involving the Fund will fail to meet its obligations. This could cause the Fund to lose money or to lose the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategy.

**Call Risk** 

Call risk is the possibility that an issuer may redeem a fixed-income security before maturity (a "call") at a price below its current market price. An increase in the likelihood of a call may reduce the security's price.

If a fixed-income security is called, the Fund may have to reinvest the proceeds in other fixed-income securities with lower interest rates, higher credit risks or other less favorable characteristics.

**Sector Risk** 

Companies with similar characteristics may be grouped together in broad categories called sectors. Sector risk is the possibility that a certain sector may underperform other sectors or the market as a whole. As the Adviser allocates more of the Fund's portfolio holdings to a particular sector, the Fund's performance will be more susceptible to any economic, business or other developments which generally affect that sector.

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**Liquidity Risk** 

Trading opportunities are more limited for fixed-income securities that have not received any credit ratings, have received ratings below investment grade or are not widely held or are issued by companies located in emerging markets. Also, if dealer capacity has not kept, or does not keep, pace with market growth, or if regulatory changes or other certain developments warrant, dealer inventories of securities (such as corporate bonds) may reach low levels and impact a dealer's ability to "make markets" (or buy or sell a security at a quoted bid and ask price). These factors may make it more difficult to sell or buy a security at a favorable price or time.

Consequently, the Fund may have to accept a lower price to sell a security or not sell a security, sell other securities to raise cash or give up an investment opportunity, any of which could have a negative effect on the Fund's performance. A significant reduction in dealer inventories or "market makers," or other factors resulting in infrequent trading of securities, can lead to decreased liquidity and may also lead to an increase in their price volatility. These affects may be exacerbated during times of economic or political stress.

Liquidity risk also refers to the possibility that the Fund may not be able to sell a security or close out a derivative contract when it wants to. If this happens, the Fund will be required to continue to hold the security or keep the position open, and the Fund could incur losses.

OTC derivative contracts generally carry greater liquidity risk than exchange-traded contracts. This risk may be increased in times of financial stress, if the trading market for OTC derivative contracts becomes restricted.

Increased Fund redemption activity, which may occur in a rising interest rate environment or for other reasons, also may increase liquidity risk due to the need of the Fund to sell portfolio securities and may negatively impact Fund performance.

**Risk of Foreign Investing** 

Foreign securities pose additional risks because foreign economic or political conditions may be less favorable than those of the United States. Securities in foreign markets may also be subject to taxation policies that reduce returns for U.S. investors.

Foreign companies and national governments may not provide information (including financial statements) as frequently or to as great an extent as companies in the United States. Foreign companies and national governments may also receive less coverage than U.S. companies by market analysts and the financial press. In addition, foreign countries may lack uniform accounting, auditing and financial reporting standards or regulatory requirements comparable to those applicable to U.S. companies. These factors may prevent the Fund and its Adviser from obtaining information concerning foreign companies and national governments that is as frequent, extensive and reliable as the information available concerning companies in the United States.

Foreign countries may have restrictions on foreign ownership of securities or may impose exchange controls, capital flow restrictions or repatriation restrictions which could adversely affect the liquidity of the Fund's investments.

Legal remedies available to investors in certain foreign countries may be more limited than those available with respect to investments in the United States or in other foreign countries.

**Risk of Investing in Derivative Contracts and Hybrid Instruments** 

The Fund's exposure to derivative contracts and hybrid instruments (either directly or through its investment in another investment company) involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. First, changes in the value of the derivative contracts and hybrid instruments in which the Fund invests may not be correlated with changes in the value of the underlying Reference Instruments or, if they are correlated, may move in the opposite direction than originally anticipated. Second, while some strategies involving derivatives may reduce the risk of loss, they may also reduce potential gains or, in some cases, result in losses by offsetting favorable price movements in portfolio holdings. Third, there is a risk that derivative contracts and hybrid instruments may be erroneously priced or improperly valued and, as a result, the Fund may need to make increased cash payments to the counterparty. Fourth, exposure to derivative contracts and hybrid instruments may have tax consequences to the Fund and its shareholders. For example, derivative contracts and hybrid instruments may cause the Fund to realize increased ordinary income or short-term capital gains (which are treated as ordinary income for Federal income tax purposes) and, as a result, may increase taxable distributions to shareholders. In addition, under certain circumstances certain derivative contracts and hybrid instruments may cause the Fund to: (a) incur an excise tax on a portion of the income related to those contracts and instruments; and/or (b) reclassify, as a return of capital, some or all of the distributions previously made to shareholders during the fiscal year as dividend income. Fifth, a common provision in OTC derivative contracts permits the counterparty to terminate any such contract between it and the Fund, if the value of the Fund's total net assets declines below a specified level over a given time period. Factors that may contribute to such a decline (which usually must be substantial) include significant shareholder redemptions and/or a marked decrease in the market value of the Fund's investments. Any such termination of the Fund's OTC derivative contracts may adversely affect the Fund (for example, by increasing losses and/or costs, and/or preventing the Fund from fully implementing its

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investment strategies). Sixth, the Fund may use a derivative contract to benefit from a decline in the value of a Reference Instrument. If the value of the Reference Instrument declines during the term of the contract, the Fund makes a profit on the difference (less any payments the Fund is required to pay under the terms of the contract). Any such strategy involves risk. There is no assurance that the Reference Instrument will decline in value during the term of the contract and make a profit for the Fund. The Reference Instrument may instead appreciate in value creating a loss for the Fund. Seventh, a default or failure by a CCP or an FCM (also sometimes called a "futures broker"), or the failure of a contract to be transferred from an Executing Dealer to the FCM for clearing, may expose the Fund to losses, increase its costs, or prevent the Fund from entering or exiting derivative positions, accessing margin, or fully implementing its investment strategies. The central clearing of a derivative and trading of a contract over a SEF could reduce the liquidity in, or increase costs of entering into or holding, any contracts. Finally, derivative contracts and hybrid instruments may also involve other risks described in this Prospectus, such as interest rate, credit, liquidity and leverage risks.

**Leverage Risk** 

Leverage risk is created when an investment, which includes, for example, an investment in a derivative contract, exposes the Fund to a level of risk that exceeds the amount invested. Changes in the value of such an investment magnify the Fund's risk of loss and potential for gain. Investments can have these same results if their returns are based on a multiple of a specified index, security or other benchmark.

**technology Risk** 

The Adviser uses various technologies in managing the Fund, consistent with its investment objective(s) and strategy described in this Prospectus. For example, proprietary and third-party data and systems are utilized to support decision-making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance.

How to Invest in the Fund

The Fund is used to implement fixed-income investment strategies for investors in wrap fee, separately managed and other discretionary investment accounts that are advised or sub-advised by Federated Investment Counseling (FIC), a subsidiary of Federated Hermes, or its affiliates, or certain other third-party discretionary managers that have a business relationship with FIC as described below, as well as affiliated investment companies. The Fund is advised by Federated Investment Management Company (the "Adviser"), another subsidiary of Federated Hermes, and an affiliate of FIC.

For purposes of this Prospectus: (1) the fixed-income investment strategies implemented through investments in the Fund are referred to as the "Fixed-Income Strategies"; (2) the investors in the wrap fee, separately managed and other discretionary investment accounts that may be permitted to invest in the Fund are referred to as "Eligible Investors"; (3) the wrap fee, separately managed and other discretionary investment accounts in which Eligible Investors may invest are referred to as "Eligible Accounts"; and (4) FIC, its affiliates and any other third-party discretionary managers that may invest Eligible Investors' assets in the Fund are referred to as "Discretionary Managers." To the extent permitted under applicable law, the Fund may also be used as an investment option for other investment companies managed by the Adviser or an affiliate. These other investment companies are referred to in this Prospectus as "Affiliated Funds."

At any time, shareholders of the Fund may include Eligible Investors and, to the extent permitted under applicable law, Affiliated Funds. Eligible Investors in the Fund do not include unaffiliated investment companies under the Investment Company Act of 1940 ("1940 Act"), as amended, or private funds exempt from registration under the 1940 Act pursuant to Sections 3(c)(1) or 3(c)(7) of the 1940 Act, unless appropriate exemptive relief is obtained under the 1940 Act and the Fund determines to accept the purchase order for such an investment. In addition, unless the Fund determines to accept a purchase order for an investment, an Eligible Investor in the Fund does not include: (i) a non-resident alien within the meaning of I.R.C. § 7701(b)(1)(B) who is a natural person; (ii) a covered expatriate (i.e., a U.S. citizen temporarily residing abroad) within the meaning of I.R.C. § 877A(g)(1)(A); (iii) a foreign institutional investor; or (iv) a fund or investor in the European Union.

At any time that an investor in the Fund ceases to be an Eligible Investor and FIC (or its affiliate) is acting in a discretionary capacity, the Fund will redeem the Fund's Shares held by such investor. At any time that an investor in the Fund (through a relationship with a third-party discretionary manager that has a business relationship with FIC (or its affiliate)) ceases to be an Eligible Investor, the third-party discretionary manager will redeem the Fund's Shares held by such investor. In all circumstances, Federated Securities Corp. reserves the right to authorize the liquidation of shares for ineligible investors.

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The Fixed-Income Strategies may include investments in individual securities, as well as shares of the Fund ("Shares"), depending upon the type of Eligible Account, the applicable investment objectives, restrictions and investment mandate of an Eligible Investor, instructions provided by an Eligible Investor or Discretionary Manager or other relevant factors. The Fund is designed to purchase securities required for the Fixed-Income Strategies that cannot be efficiently held individually in Eligible Accounts, but can be effectively held in a pooled vehicle, such as a mutual fund.

When the Fund is used to implement Fixed-Income Strategies for wrap fee and separately managed accounts, the wrap fee program sponsors or separately managed account managers typically will have contracts with Eligible Investors to provide investment management, custody and/or other services to Eligible Investors in connection with investments in Eligible Accounts. Eligible Investors typically will pay negotiated asset-based fees, which may vary, for the services. In wrap fee programs, the fees generally will be aggregated or "bundled." FIC, or an affiliate, will be engaged as an adviser or sub-adviser to manage, on a discretionary basis, assets of the Eligible Investors invested in the Eligible Accounts in accordance with one or more Fixed-Income Strategies developed by FIC or an affiliate. FIC, or an affiliate, typically will receive negotiated asset-based investment advisory fees for managing the Eligible Investors' assets and performing other administrative services. These fees received by FIC or an affiliate, may vary between wrap fee program sponsors and/or separately managed account managers, and typically will be paid out of the aggregated fees charged to Eligible Investors by the wrap fee program sponsors and/or separately managed account managers. The fees received by FIC, or an affiliate, will be paid for separate account advisory services which are separate from the Adviser's management of the Fund. Where FIC, or an affiliate, will be the Discretionary Manager for Eligible Accounts of Eligible Investors, FIC, or an affiliate, will implement the applicable Fixed-Income Strategies through, among other possible investments, purchasing and redeeming Shares of the Fund on behalf of the Eligible Investors. In such cases, the Fund will be used to implement certain investment strategies offered by FIC, including an investment strategy for Eligible Accounts. The investment adviser to the Fund does not charge a fee for its advisory services to the Fund and has contractually agreed to reimburse all operating expenses, excluding extraordinary expenses, incurred by the Fund. However, as discussed above in "Investing in Securities of Other Investment Companies," the Fund may invest its assets in securities of other investment companies, including the securities of affiliated money market funds, as an efficient means of implementing its investment strategies and/or managing its uninvested cash. For example, the Fund may decide to have any excess cash swept on a daily basis into an affiliated money market fund. These other investment companies are managed independently of the Fund and incur additional fees and/or expenses which would, therefore, be borne indirectly by the Fund in connection with any such investment.

If the Fund is used to implement Fixed-Income Strategies for other separately managed or discretionary investment accounts, FIC, or an affiliate, will not manage, on a discretionary basis, the accounts of the Eligible Investors invested in these types of Eligible Accounts. The Discretionary Managers of the Eligible Investors' accounts will be third-party discretionary managers. These Discretionary Managers typically will have contracts with Eligible Investors to provide investment management, custody and/or other services to Eligible Investors in connection with investments in these Eligible Accounts. Eligible Investors typically will pay negotiated asset-based fees, which may vary, for the services. These Discretionary Managers will be engaged as advisers or sub-advisers to manage, on a discretionary basis, assets of the Eligible Investors invested in these Eligible Accounts in accordance with one or more Fixed-Income Strategies developed by these Discretionary Managers. These Discretionary Managers will have separate contracts with FIC, or an affiliate, to provide these Discretionary Managers with one or more model portfolios for Fixed-Income Strategies developed by FIC or an affiliate, as well as recommendations for updates to the model portfolios. These Discretionary Managers will use the model portfolios, and recommended updates, at their discretion to develop the Discretionary Managers' Fixed-Income Strategies. FIC, or an affiliate, will not have discretionary authority over Eligible Investors' accounts. As compensation for providing the model portfolios and recommended updates, FIC, or an affiliate, typically will receive negotiated asset-based fees, which will be determined based on the amount of assets under management these Discretionary Managers manage in accordance with their Fixed-Income Strategies that they develop using the model portfolios, and recommended updates, provided by FIC or an affiliate. These fees received by FIC or an affiliate, may vary between Discretionary Managers, and will be paid to FIC, or an affiliate, by these Discretionary Managers. The fees received by FIC, or an affiliate, will be paid for services separate from the Adviser's management of the Fund. These Discretionary Managers will have the option to implement their Fixed-Income Strategies through, among other possible investments, purchasing and redeeming Shares of the Fund on behalf of the Eligible Investors.

Shareholders of the Fund, as Eligible Investors, are strongly encouraged to read carefully the wrap fee brochure or other disclosure documents provided to them in connection with their investments in wrap fee, separately managed or other discretionary investment accounts (i.e., the Eligible Accounts). To the extent that an Eligible Investor has imposed investment restrictions on its Eligible Accounts, the Fund may hold investments that are inconsistent with the Eligible Investor's investment restrictions. These brochures and disclosure documents will contain information about the fees charged to Eligible Investors in connection with their investments in the Eligible Accounts. These brochures and other

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disclosure documents will contain information about the fees paid or received by the wrap fee program sponsors, or Discretionary Managers or other third-parties, to or from FIC, or its affiliates, in connection with the Eligible Investors' investments in the Eligible Accounts. These brochures and disclosure documents also will contain other important information regarding the Discretionary Managers and Eligible Accounts, such as minimum Eligible Account sizes. Shareholders of the Fund, as Eligible Investors, pay no additional fees or expenses to purchase Shares of the Fund.

Shares of the Fund held by an Eligible Investor may be purchased or redeemed only at the direction of FIC or another Discretionary Manager of the Eligible Account. To the extent the Fund is permitted as an investment option for an Affiliated Fund, Shares also may be purchased and redeemed at the discretion of an Affiliated Fund's adviser. Shares can be purchased or redeemed on any day the New York Stock Exchange (NYSE) is open.

What Do Shares Cost?

**CALCULATION OF NET ASSET VALUE**

When the Fund receives a transaction request in proper form (as described in this Prospectus under the sections entitled "How to Purchase Shares" and "How to Redeem Shares"), it is processed at the next calculated net asset value of a Share (NAV). A Share's NAV is determined as of the end of regular trading on the New York Stock Exchange (NYSE) (normally 4:00 p.m. Eastern time) each day the NYSE is open. The Fund calculates the NAV by valuing its assets, subtracting its liabilities, and dividing the balance by the number of Shares outstanding. The Fund's current NAV and/or public offering price may be found at FederatedInvestors.com, via online news sources and in certain newspapers.

Eligible Investors can purchase, redeem or exchange Shares any day the NYSE is open.

When the Fund holds securities that trade principally in foreign markets on days the NYSE is closed, the value of the Fund's assets may change on days you cannot purchase or redeem Shares. This may also occur when the U.S. markets for fixed-income securities are open on a day the NYSE is closed.

How Does the Fund Price Securities?

In calculating its NAV, the Fund generally values investments as follows:

◾ Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Adviser.

◾ 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.

◾ OTC derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser.

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, or if information furnished by a pricing service, in the opinion of the 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 generally 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.

Shares of other mutual funds are valued based upon their reported NAVs. The prospectuses for these mutual funds explain the circumstances under which they will use fair value pricing and the effects of using fair value pricing.

**Fair Valuation and Significant Events Procedures** 

Pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended, the Board has designated the Adviser as the Fund's valuation designee to perform the fair valuation determination for securities and other assets held by the Fund. 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 subject to Board oversight and certain reporting and other requirements intended to provide the Board the information it needs to oversee the Adviser's fair value determinations.

The Valuation Committee is also authorized to use pricing services to provide price evaluations of the current fair value of certain investments for purposes of calculating the NAV. 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 as the valuation designee. The Board periodically reviews the fair valuations made by the Valuation Committee. The Board has 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. The Fund's SAI discusses the methods used by pricing services and the Valuation Committee in valuing investments.

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Using fair value to price investments may result in a value that is different from an investment's most recent closing price and from the prices used by other registered funds to calculate their NAVs. The application of the fair value procedures to an investment represents a good faith determination of such investment's fair value. 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 could be materially different.

The Adviser also has 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:

◾ With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;

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

◾ Announcements concerning matters such as acquisitions, recapitalizations or 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. The Board periodically reviews fair valuations made in response to significant events.

The fair valuation of securities following a significant event can serve to reduce arbitrage opportunities for short-term traders to profit at the expense of long-term investors in the Fund. For example, such arbitrage opportunities may exist when the market on which portfolio securities are traded closes before the Fund calculates its NAV, which is typically the case with Asian and European markets. However, there is no assurance that these significant event procedures will prevent dilution of the NAV by short-term traders. See "Account and Share Information–Frequent Trading Policies" for other procedures the Fund employs to deter such short-term trading.

How to Purchase Shares

Shares of the Fund held for an Eligible Investor may be purchased only at the direction of FIC or another Discretionary Manager of the Eligible Account. To the extent the Fund is permitted as an investment option for an Affiliated Fund, Shares also may be purchased at the discretion of the Affiliated Fund's adviser. Shares of the Fund may be purchased any day the NYSE is open. An account may be established and Shares purchased by submitting an Account Application and purchase request in good order to the Fund's Transfer Agent, SS&C GIDS, Inc.

Payment by federal funds must be received by the Fund's custodian by 3:00 p.m. (Eastern time) the next business day following the receipt of the purchase order. The Fund reserves the right to reject any request to purchase Shares.

How to Redeem Shares

Shares of the Fund held by an Eligible Investor may be redeemed only at the direction of FIC or another Discretionary Manager of the Eligible Investor's Eligible Account. Shares held by an Affiliated Fund may be redeemed at the discretion of an Affiliated Fund's adviser.

Shares held by or on behalf of a shareholder who ceases to be an Eligible Investor (as defined above) must be redeemed and each shareholder on whose behalf FIC or another Discretionary Manager has purchased Shares agrees to any such redemption. If FIC (or its affiliate) is acting in a discretionary capacity, the Fund will redeem the Fund's Shares held by such investor. If the Fund Shares were purchased through a relationship with a third-party Discretionary Manager that has a business relationship with FIC (or its affiliate), the third-party Discretionary Manager will redeem the Fund's Shares held by such investor. In all circumstances, Federated Securities Corp. reserves the right to authorize the liquidation of shares for ineligible investors. The Fund will attempt to provide the applicable Discretionary Manager and/or wrap program sponsor with advance notice of any such redemption on behalf of the shareholder.

Shares of the Fund may be redeemed any day the NYSE is open by submitting a redemption request in good order to the Fund's Transfer Agent, SS&C GIDS, Inc. Redemption requests received before the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time) will receive a redemption amount based on that day's NAV.

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Redemption proceeds normally are wired or mailed within one business day for each method of payment after receiving a timely request in proper form. Depending upon the method of payment, when shareholders receive redemption proceeds can differ. Payment may be delayed for up to seven days under certain circumstances (see "Limitations on Redemption Proceeds").

**PAYMENT METHODS FOR REDEMPTIONS** 

Redemption proceeds will be paid by one of the following methods established by the Discretionary Manager or affiliated Adviser:

◾ an electronic transfer to the shareholder's wrap fee, separately managed or discretionary investment account (i.e., Eligible Account) custodied at a financial institution that is an ACH member;

◾ wire payment to the shareholder's wrap fee, separately managed or discretionary investment account (i.e., Eligible Account) custodied at a domestic commercial bank that is a Federal Reserve System member; or

◾ check mailed to the qualified custodian of the shareholder's wrap fee, separately managed or discretionary investment accounts (i.e., Eligible Account).

**Methods the Fund May Use to Meet Redemption Requests** 

The Fund intends to pay Share redemptions in cash. To ensure that the Fund has cash to meet Share redemptions on any day, the Fund typically expects to hold a cash or cash equivalent reserve or sell portfolio securities.

In unusual or stressed circumstances, the Fund may generate cash in the following ways:

◾ **Inter-fund Borrowing and Lending.** The SEC has granted an exemption that permits the Fund and all other funds advised by subsidiaries of Federated Hermes ("Federated Hermes funds") to lend and borrow money for certain temporary purposes directly to and from other Federated Hermes funds. Inter-fund borrowing and lending is permitted only: (a) to meet shareholder redemption requests; (b) to meet commitments arising from "failed" trades; and (c) for other temporary purposes. All inter-fund loans must be repaid in seven days or less.

◾ **Committed 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. The LOC was made available to temporarily finance the repurchase or redemption of shares of the funds, 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.

◾ **Redemption in Kind.** Although the Fund intends to pay Share redemptions in cash, it reserves the right to pay the redemption price in whole or in part by an "in-kind" distribution of the Fund's portfolio securities. Because the Fund has elected to be governed by Rule 18f-1 under the 1940 Act, the Fund is obligated to pay Share redemptions to any one shareholder in cash only up to the lesser of $250,000 or 1% of the net assets represented by such Share class during any 90-day period. Redemptions in kind are made consistent with the procedures adopted by the Fund's Board, which generally include distributions of a pro rata share of the Fund's portfolio assets. Redemption in kind is not as liquid as a cash redemption. If redemption is made in kind, securities received may be subject to market risk and the shareholder could incur taxable gains and brokerage or other charges in converting the securities to cash.

**LIMITATIONS ON REDEMPTION PROCEEDS**

Redemption proceeds normally are wired or mailed within one business day after receiving a request in proper form. Payment may be delayed up to seven days:

◾ to allow a purchase to clear;

◾ during periods of market volatility;

◾ when a shareholder's trade activity or amount adversely impacts the Fund's ability to manage its assets; or

◾ during any period when the Federal Reserve wire or applicable Federal Reserve banks are closed, other than customary weekend and holiday closings.

If a redemption of Shares recently purchased by check (including a cashier's check or certified check), money order, bank draft or ACH is requested, redemption proceeds may not be made available up to seven calendar days to allow the Fund to collect payment on the instrument used to purchase such Shares. If the purchase instrument does not clear, any purchase order will be canceled and the party submitting such payment will be responsible for any losses incurred by the Fund as a result of the canceled order.

In addition, redemptions may be suspended, or the payment of proceeds may be delayed, during any period:

◾ when the NYSE is closed, other than customary weekend and holiday closings;

◾ when trading on the NYSE is restricted, as determined by the SEC;

◾ in which an emergency exists, as determined by the SEC, so that disposal of the Fund's investments or determination of its NAV is not reasonably practicable; or

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◾ as the SEC may by order permit for the protection of Fund shareholders.

You will not accrue interest or dividends on uncashed redemption checks from the Fund when checks are undeliverable and returned to the Fund.

**Share Certificates** 

The Fund does not issue share certificates.

Account and Share Information

**CONFIRMATIONS AND ACCOUNT STATEMENTS** 

Shareholders will receive confirmation of purchases and redemptions and periodic statements reporting all account activity, including dividends and capital gains paid.

Certain states, including the State of Texas, have laws that allow shareholders to designate a representative to receive abandoned or unclaimed property ("escheatment") notifications by completing and submitting a designation form that generally can be found on the official state website. If a shareholder resides in an applicable state, and elects to designate a representative to receive escheatment notifications, escheatment notices generally will be delivered as required by such state laws, including, as applicable, to both the shareholder and the designated representative. A completed designation form may be mailed to the Fund (if Shares are held directly with the Fund) or to the shareholder's financial intermediary (if Shares are not held directly with the Fund). Shareholders should refer to relevant state law for the shareholder's specific rights and responsibilities under his or her state's escheatment law(s), which can generally be found on a state's official website.

**DIVIDENDS AND CAPITAL GAINS**

The Fund declares any dividends daily and pays them monthly to shareholders. If you purchase Shares by wire, you begin earning dividends on the day your wire is received. If you purchase Shares by check, you begin earning dividends on the business day after the Fund receives your check. In either case, you earn dividends through the day your redemption request is received. Dividends on investments in the Fund are generally paid in cash and dividend reinvestment is generally not available.

In addition, the Fund pays any capital gains at least annually, and may make such special distributions of dividends and capital gains as may be necessary to meet applicable regulatory requirements.

Shares purchased just before the record date for a capital gain distribution will pay the full price for the shares and then receive a portion of the price back in the form of a taxable distribution. Investors should consider the tax implications of purchasing Shares shortly before the record date for a capital gain.

Under the federal securities laws, the Fund is required to provide a notice to shareholders regarding the source of distributions made by the Fund if such distributions are from sources other than ordinary investment income. In addition, important information regarding the Fund's distributions, if applicable, is available at FederatedInvestors.com/product-landing/managedaccount-pools.do. Select a product name, then click "Distributions and Taxes."

**TAX INFORMATION**

The Fund and/or your financial intermediary provides year-end tax information and an annual statement of each shareholder's account activity to assist shareholders in completing their federal, state and local tax returns. Fund distributions of dividends and capital gains are taxable to shareholders whether paid in cash or reinvested in the Fund. Dividends are taxable at different rates depending on the source of dividend income. Distributions of net short-term capital gains are taxable to shareholders as ordinary income. Distributions of net long-term capital gains are taxable to shareholders as long-term capital gains regardless of how long a shareholder has owned the Shares.

Fund distributions are expected to be both dividends and capital gains. Redemptions and exchanges are taxable sales. Please consult your tax adviser regarding your federal, state and local tax liability.

**FREQUENT TRADING POLICIES** 

Frequent or short-term trading into and out of the Fund can have adverse consequences for the Fund and its shareholders who use the Fund as a long-term investment vehicle. Such trading in significant amounts can disrupt the Fund's investment strategies (e.g., by requiring it to sell investments at inopportune times or maintain excessive short-term cash positions to support redemptions), increase brokerage and administrative costs and affect the timing and amount of taxable gains distributed by the Fund. Investors engaged in such trading may also seek to profit by anticipating changes in the Fund's NAV in advance of the time as of which NAV is calculated. Given that: (a) the Fund is used exclusively to implement certain Fixed Income Strategies for Eligible Investors in Eligible Accounts and, to the extent permitted by applicable law, as an investment option for Affiliated Funds as described in this Prospectus; (b) FIC has the ability to limit

**20**

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Eligible Investors' investments in the Fund and Fund Share purchases, and redemptions for Eligible Accounts will be at the direction of FIC or another Discretionary Manager; (c) with respect to Eligible Accounts, Fund Share purchases and redemptions will be made on a frequent basis generally only for account initialization, rebalancing and liquidation purposes, or in order to invest new monies or accommodate reductions in Eligible Account size; and (d) individual Eligible Investors will not be in a position to effect purchase or redemption orders directly, the Fund does not anticipate that, in the normal case, frequent or short-term trading into and out of the Fund will have significant unanticipated or adverse consequences for the Fund and its shareholders. For these reasons, the Fund's Board has not adopted policies or procedures to discourage frequent or short-term trading of the Fund's Shares.

Other funds in the Federated Hermes family of funds may impose monitoring policies. Under normal market conditions, such monitoring policies are designed to protect the funds being monitored and their shareholders, and the operation of such policies and shareholder investments under such monitoring are not expected to have materially adverse impact on the Federated Hermes funds or their shareholders. If you plan to purchase shares of another Federated Hermes fund, please read the prospectus of that other Federated Hermes fund for more information.

**PORTFOLIO HOLDINGS INFORMATION** 

Information concerning the Fund's portfolio holdings is available at FederatedInvestors.com/product-landing/managedaccount-pools.do. Select a product name then click on "Characteristics." A complete listing of the Fund's portfolio holdings as of the end of each calendar quarter is posted on the website 30 days (or the next business day) after the end of the quarter and remains posted for six months thereafter.

Summary portfolio composition information as of the close of each month is posted on the website 15 days (or the next business day) after month-end and remains posted until replaced by the information for the succeeding month. The summary portfolio composition information may include identification of the Fund's top 10 holdings.

You may also access portfolio information as of the end of the Fund's fiscal quarters at FederatedInvestors.com/product-landing/managedaccount-pools.do. Select a product then click on "Documents." The Fund's Annual Shareholder Report and Semi-Annual Shareholder Report contain complete listings of the Fund's portfolio holdings as of the end of the Fund's second and fourth fiscal quarters. Fiscal quarter information is made available on the website within 70 days after the end of the fiscal quarter. This information is also available in reports filed with the SEC at the SEC's website at sec.gov.

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 at FederatedInvestors.com/product-landing/managedaccount-pools.do.

In addition, from time to time (for example, during periods of unusual market conditions), additional information regarding the Fund's portfolio holdings and/or composition may be posted to FederatedInvestors.com/product-landing/managedaccount-pools.do. If and when such information is posted, its availability will be noted on, and the information will be accessible from, the home page of the website.

Who Manages the Fund?

The Board governs the Fund. The Board selects and oversees the Adviser, Federated Investment Management Company. The Adviser manages the Fund's assets, including buying and selling portfolio securities. Federated Advisory Services Company (FASC), an affiliate of the Adviser, provides certain support services to the Adviser. The fee for these services is paid by the Adviser and not by the Fund. The address of the Adviser and FASC is 1001 Liberty Avenue, Pittsburgh, PA 15222-3779.

The Adviser and other advisory subsidiaries of Federated Hermes combined, advise approximately 102 registered investment companies spanning equity, fixed-income and money market mutual funds and also manage a variety of other pooled investment vehicles, private investment companies and customized separately managed accounts (including non-U.S./offshore funds). Federated Hermes' assets under management totaled approximately $668.9 billion as of December 31, 2022. Federated Hermes was established in 1955 as Federated Investors, Inc. and is one of the largest investment managers in the United States with nearly 2,000 employees. Federated Hermes provides investment products to more than 11,000 investment professionals and institutions.

The Adviser advises approximately 73 registered investment companies and also manages sub-advised funds. The Adviser's assets under management totaled approximately $399.6 billion as of December 31, 2022.

**21**

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**PORTFOLIO MANAGEMENT INFORMATION**

**Jerome D. Conner** 

Jerome D. Conner, CFA, Senior Portfolio Manager, has been the Fund's portfolio manager since February of 2010.

Mr. Conner is responsible for day to day management of the Fund focusing on asset allocation, interest rate strategy and security selection. He has been with the Adviser or an affiliate since 2002; has worked in investment management since 1995; has managed investment portfolios since 2010. Education: B.S., U.S. Naval Academy; M.S., Boston University.

**Brian S. Ruffner** 

Brian S. Ruffner, Senior Portfolio Manager, has been the Fund's portfolio manager since February of 2018.

Mr. Ruffner is responsible for providing research and advice on sector allocation and security selection. He has been with the Adviser or an affiliate since 1994; has worked in investment management since 2001; has managed investment portfolios since 2009. Education: B.S., Indiana University of Pennsylvania; M.B.A., Duquesne University.

The Fund's SAI provides additional information about the Portfolio Managers' compensation, management of other accounts and ownership of securities in the Fund.

**ADVISORY FEES**

The Adviser will not charge an advisory fee for its services to the Fund.

The Adviser's affiliate, FIC, may benefit from the Fund being used to implement Fixed Income Strategies for Eligible Investors' Eligible Accounts.

A discussion of the Board's review of the Fund's investment advisory contract is available in the Fund's Annual and Semi-Annual Shareholder Reports for the periods ended December 31 and June 30, respectively.

Financial Information

**FINANCIAL HIGHLIGHTS** 

The Financial Highlights will help you understand the Fund's financial performance for its past five fiscal years. Some of the information is presented on a per Share basis. Total returns represent the rate an investor would have earned (or lost) on an investment in the Fund, assuming reinvestment of any dividends and capital gains.

This information has been audited by Ernst & Young LLP, an independent registered public accounting firm, whose report, along with the Fund's audited financial statements, is included in the Annual Report.

**22**

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Financial Highlights

(For a Share Outstanding Throughout Each Period)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | **$11.86** | **$12.38** | **$11.48** | **$10.26** | **$11.10** |
| **Income From Investment Operations:** |  |  |  |  |  |
| Net investment income (loss) | 0.38 | 0.38 | 0.43 | 0.45 | 0.46 |
| Net realized and unrealized gain (loss) | (2.20) | (0.44) | 0.91 | 1.22 | (0.77) |
| TOTAL FROM INVESTMENT OPERATIONS | (1.82) | (0.06) | 1.34 | 1.67 | (0.31) |
| **Less Distributions:** |  |  |  |  |  |
| Distributions from net investment income | (0.38) | (0.38) | (0.43) | (0.45) | (0.46) |
| Distributions from net realized gain | (0.03) | (0.08) | (0.01) |  | (0.07) |
| TOTAL DISTRIBUTIONS | (0.41) | (0.46) | (0.44) | (0.45) | (0.53) |
| **Net Asset Value, End of Period** | **$9.63** | **$11.86** | **$12.38** | **$11.48** | **$10.26** |
| **Total Return**<sup>1</sup> | (15.44)% | (0.41)% | 11.88% | 16.56% | (2.82)% |
| **Ratios to Average Net Assets:** |  |  |  |  |  |
| Net expenses<sup>2,3</sup> | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Net investment income | 3.69% | 3.19% | 3.64% | 4.11% | 4.30% |
| Expense waiver/reimbursement<sup>4</sup> | 0.24% | 0.23% | 0.27% | 0.30% | 0.32% |
| **Supplemental Data:** |  |  |  |  |  |
| Net assets, end of period (000 omitted) | $134660 | $182389 | $143775 | $105126 | $85243 |
| Portfolio turnover<sup>5</sup> | 7% | 11% | 13% | 18% | 16% |

---

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

---

| | |
|:---|:---|
| 1 | *Based on net asset value.* |
| 2 | *Federated Investment Management Company (the "Adviser") has contractually agreed to reimburse all operating expenses, excluding extraordinary expenses,* <br> *incurred by the Fund.*<br>|
| 3 | *Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.* |
| 4 | *This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/*<br> *reimbursement recorded by investment companies in which the Fund may invest.*<br>|
| 5 | *Securities that mature are considered sales for purposes of this calculation.* |

---

Further information about the Fund's performance is contained in the Fund's Annual Report, dated December 31, 2022, which can be obtained free of charge.

**23**

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Appendix A: Hypothetical Investment and Expense Information

The following chart provides additional hypothetical information about the effect of the Fund's expenses, including investment advisory fees and other Fund costs, on the Fund's assumed returns over a 10-year period. The chart shows the estimated expenses that would be incurred in respect of a hypothetical investment of $10,000, assuming a 5% return each year, and no redemption of Shares. The chart also assumes that the Fund's annual expense ratio stays the same throughout the 10-year period (except for the impact of changes in contractual expense limitations) and that all dividends and distributions are reinvested. The annual expense ratio used in the chart is the same as stated in the "Fees and Expenses" table of this Prospectus (and thus do not reflect any other fee waiver or expense reimbursement currently in effect). The maximum amount of any sales charge that might be imposed on the *purchase* of Shares (and deducted from the hypothetical initial investment of $10,000; the "Front-End Sales Charge") is reflected in the "Hypothetical Expenses" column. The hypothetical investment information does not reflect the effect of charges (if any) normally applicable to *redemptions* of Shares (e.g., deferred sales charges, redemption fees). Mutual fund returns, as well as fees and expenses, may fluctuate over time, and your actual investment returns and total expenses may be higher or lower than those shown below.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **FEDERATED HERMES CORPORATE BOND STRATEGY PORTFOLIO** | **FEDERATED HERMES CORPORATE BOND STRATEGY PORTFOLIO** | **FEDERATED HERMES CORPORATE BOND STRATEGY PORTFOLIO** | **FEDERATED HERMES CORPORATE BOND STRATEGY PORTFOLIO** | **FEDERATED HERMES CORPORATE BOND STRATEGY PORTFOLIO** | **FEDERATED HERMES CORPORATE BOND STRATEGY PORTFOLIO** |
| **ANNUAL EXPENSE RATIO: 0.00%** | **ANNUAL EXPENSE RATIO: 0.00%** | **ANNUAL EXPENSE RATIO: 0.00%** | **ANNUAL EXPENSE RATIO: 0.00%** | **ANNUAL EXPENSE RATIO: 0.00%** | **ANNUAL EXPENSE RATIO: 0.00%** |
| **MAXIMUM FRONT-END SALES CHARGE: NONE** | **MAXIMUM FRONT-END SALES CHARGE: NONE** | **MAXIMUM FRONT-END SALES CHARGE: NONE** | **MAXIMUM FRONT-END SALES CHARGE: NONE** | **MAXIMUM FRONT-END SALES CHARGE: NONE** | **MAXIMUM FRONT-END SALES CHARGE: NONE** |
| **Year** | **Hypothetical**<br> **Beginning** <br> **Investment**<br>| **Hypothetical** <br> **Performance** <br> **Earnings**<br>| **Investment** <br> **After**<br> **Returns**<br>| **Hypothetical** <br> **Expenses**<br>| **Hypothetical** <br> **Ending**<br> **Investment**<br>|
| 1 | $10000.00 | $500.00 | $10500.00 | $0.00 | $10500.00 |
| 2 | $10500.00 | $525.00 | $11025.00 | $0.00 | $11025.00 |
| 3 | $11025.00 | $551.25 | $11576.25 | $0.00 | $11576.25 |
| 4 | $11576.25 | $578.81 | $12155.06 | $0.00 | $12155.06 |
| 5 | $12155.06 | $607.75 | $12762.81 | $0.00 | $12762.81 |
| 6 | $12762.81 | $638.14 | $13400.95 | $0.00 | $13400.95 |
| 7 | $13400.95 | $670.05 | $14071.00 | $0.00 | $14071.00 |
| 8 | $14071.00 | $703.55 | $14774.55 | $0.00 | $14774.55 |
| 9 | $14774.55 | $738.73 | $15513.28 | $0.00 | $15513.28 |
| 10 | $15513.28 | $775.66 | $16288.94 | $0.00 | $16288.94 |
| Cumulative |  | $6288.94 |  | $0.00 |  |

---

**24**

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Notes

[PAGE INTENTIONALLY LEFT BLANK]

------

An SAI dated February 28, 2023, is incorporated by reference into this Prospectus. Additional information about the Fund and its investments is contained in the Fund's SAI and Annual and Semi-Annual Reports to shareholders as they become available. The Annual Report's Management's Discussion of Fund Performance discusses market conditions and investment strategies that significantly affected the Fund's performance during its last fiscal year. The SAI contains a description of the Fund's policies and procedures with respect to the disclosure of its portfolio securities. To obtain the SAI, Annual Report, Semi-Annual Report and other information without charge, and to make inquiries, call your financial intermediary, Discretionary Manager or the Fund at 1-800-341-7400.

The Fund's shareholder reports will be made available on FederatedInvestors.com/FundInformation, and you will be notified and provided with a link each time a report is posted to the website. You may request to receive paper reports from the Fund or from your financial intermediary, free of charge, at any time. You may also request to receive documents through e-delivery.

These documents, as well as additional information about the Fund (including portfolio holdings, performance and distributions) are also available at FederatedInvestors.com/product-landing/managedaccount-pools.do.

You can obtain information about the Fund (including the SAI) by accessing Fund information from the EDGAR Database on the SEC's website at sec.gov. You can purchase copies of this information by contacting the SEC by email at publicinfo@sec.gov.

![](fhilogok11p_2.jpg)

Federated Hermes Corporate Bond Strategy Portfolio

Federated Hermes Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

Contact us at  **<u>FederatedInvestors.com</u>**

or call 1-800-341-7400.

Federated Securities Corp., Distributor

*Investment Company Act File No. 811-4017* 

*CUSIP 31421P100*

*34039 (2/23)*© 2023 Federated Hermes, Inc.

![](imgcb97889b2.jpg)

------

**Statement of Additional Information**

***February 28, 2023***

![](img0dd5be8b1.gif)

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

**Ticker** FCSPX<br>

------

Federated Hermes Corporate Bond Strategy Portfolio

------

A Portfolio of Federated Hermes Managed Pool Series

This Statement of Additional Information (SAI) is not a Prospectus. Read this SAI in conjunction with the Prospectus for Federated Hermes Corporate Bond Strategy Portfolio (the "Fund"), dated February 28, 2023.

This SAI incorporates by reference the Fund's Annual Report. Obtain the Prospectus or the Annual Report without charge by calling 1-800-341-7400.

---

| | |
|:---|:---|
|  | **Contents** |
| 1 | [How is the Fund Organized?](#xx_3cce1031-32de-4548-a218-a123b7bc8552_1) |
| 1 | [Securities in Which the Fund Invests](#xx_3cce1031-32de-4548-a218-a123b7bc8552_1) |
| 9 | [Investment Risks](#xx_3cce1031-32de-4548-a218-a123b7bc8552_9) |
| 15 | [Investment Objective (and Policies) and Investment Limitations](#xx_3cce1031-32de-4548-a218-a123b7bc8552_15) |
| 17 | [What Do Shares Cost?](#xx_3cce1031-32de-4548-a218-a123b7bc8552_17) |
| 19 | [How to Invest in the Fund?](#xx_3cce1031-32de-4548-a218-a123b7bc8552_19) |
| 22 | [Purchases In-Kind](#xx_3cce1031-32de-4548-a218-a123b7bc8552_22) |
| 22 | [Redemption In-Kind](#xx_3cce1031-32de-4548-a218-a123b7bc8552_22) |
| 22 | [Massachusetts Partnership Law](#xx_3cce1031-32de-4548-a218-a123b7bc8552_22) |
| 23 | [Account and Share Information](#xx_3cce1031-32de-4548-a218-a123b7bc8552_23) |
| 23 | [Tax Information](#xx_3cce1031-32de-4548-a218-a123b7bc8552_23) |
| 24 | [Who Manages and Provides Services to the Fund?](#xx_3cce1031-32de-4548-a218-a123b7bc8552_24) |
| 39 | [Financial Information](#xx_3cce1031-32de-4548-a218-a123b7bc8552_39) |
| 39 | [Investment Ratings](#xx_3cce1031-32de-4548-a218-a123b7bc8552_39) |
| 44 | [Addresses](#xx_c63dd89f-0fdd-4d86-b1e0-5181ac4a839b_1) |
| 45 | [Appendix](#xx_e1cf5cd3-2824-4668-b09f-ae144e5cdd37_1) |

---

Federated Hermes Corporate Bond Strategy Portfolio

Federated Hermes Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

Contact us at **FederatedInvestors.com**

or call 1-800-341-7400.

Federated Securities Corp., Distributor

*34040 (2/23)*© 2023 Federated Hermes, Inc.

------

How is the Fund Organized?

The Fund is a diversified portfolio of Federated Hermes Managed Pool Series (the "Trust"). The Trust is an open-end, management investment company that was established under the laws of the Commonwealth of Massachusetts on October 3, 2005. The Trust may offer separate series of shares representing interests in separate portfolios of securities. The Fund's investment adviser is Federated Investment Management Company (the "Adviser"). As more fully explained in the Fund's Prospectus, the Fund is used to implement fixed-income investment strategies for investors in wrap fee, separately managed and other discretionary investment accounts that are advised or subadvised by Federated Investment Counseling (FIC), a subsidiary of Federated Hermes, Inc. ("Federated Hermes," formerly, Federated Investors, Inc.), or its affiliates, or certain other discretionary managers, as well as affiliated investment companies. Shares of the Fund held for an eligible investor may be purchased only at the direction of FIC or other discretionary managers to such wrap fee, separately managed or other discretionary investment accounts.

Effective June 26, 2020, the Trust changed its name from Federated Managed Pool Series to Federated Hermes Managed Pool Series, and the Fund changed its name from Federated Corporate Bond Strategy Portfolio to Federated Hermes Corporate Bond Strategy Portfolio.

For purposes of this SAI: (1) the fixed-income investment strategies implemented through investments in the Fund are referred to as the "Fixed Income Strategies"; (2) the investors in the wrap fee, separately managed and other discretionary investment accounts that may be permitted to invest in the Fund are referred to as "Eligible Investors"; (3) the wrap fee, separately managed and other discretionary investment accounts in which Eligible Investors may invest are referred to as "Eligible Accounts"; and (4) FIC, its affiliates and any other third-party discretionary managers that may invest Eligible Investors' assets in the Fund are referred to as "Discretionary Managers."

To the extent permitted under applicable law, the Fund may also be used as an investment option for other investment companies managed by the Adviser or an affiliate. These other investment companies are referred to in this SAI as "Affiliated Funds." As a result, at any time, shareholders of the Fund may include Eligible Investors and, to the extent permitted under applicable law, Affiliated Funds.

Securities in Which the Fund Invests

The principal securities or other investments in which the Fund invests are described in the Fund's Prospectus. The Fund also may invest in securities or other investments as non-principal investments for any purpose that is consistent with its investment objective. The following information is either additional information in respect of a principal security or other investment referenced in the Prospectus or information in respect of a non-principal security or other investment (in which case there is no related disclosure in the Prospectus).

**securities descriptions and techniques** 

**Fixed-Income Securities** 

The following further describes the types of fixed-income securities in which the Fund invests. This information is either additional information in respect of a principal security referenced in the Prospectus or information in respect of a non-principal security (in which case there is no related disclosure in the Prospectus).

**Commercial Paper (A Type of Corporate Debt Security)** 

Commercial paper is an issuer's obligation with a maturity of less than nine months. Companies typically issue commercial paper to pay for current expenditures. Most issuers constantly reissue their commercial paper and use the proceeds (or bank loans) to repay maturing paper. If the issuer cannot continue to obtain liquidity in this fashion, its commercial paper may default. The short maturity of commercial paper generally reduces both the market and credit risks as compared to other debt securities of the same issuer.

**Demand Instruments (A Type of Corporate Debt Security)** 

Demand instruments are corporate debt securities that the issuer must repay upon demand. Other demand instruments require a third party, such as a dealer or bank, to repurchase the security for its face value upon demand. The Fund treats demand instruments as short-term securities, even though their stated maturity may extend beyond one year.

**1**

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**Surplus Notes** 

Surplus notes are subordinated debt instruments issued by mutual and stock insurance companies. Mutual insurance companies generally issue surplus notes to raise capital. Stock insurance companies primarily issue surplus notes in transactions with affiliates. Surplus notes are treated by insurers as equity capital, or "surplus" for regulatory reporting purposes. Surplus notes typically are subordinated to any other debt.

**Capital Securities** 

Capital securities are subordinated securities, generally with a 30- to 50-year maturity and a 5- to 10-year call protection. Dividend payments generally can be deferred by the issuer for up to five years. These securities generally are unsecured and subordinated to all senior debt securities of the issuer, therefore, principal and interest payments on capital securities are subject to a greater risk of default than senior debt securities.

**Step-Up Perpetual Subordinated Securities** 

Step-up perpetual subordinated securities ("step-ups") generally are structured as perpetual preferred securities (with no stated maturity) with a 10-year call option. If the issue is not called, however, the coupon increases or "steps up," generally 150 to 250 basis points depending on the issue and its country of jurisdiction. The step-up interest rate acts as a punitive rate which would typically compel the issuer to call the security. Thus, these securities generally are priced as 10-year securities.

**Government Securities (A Fixed-Income Security)** 

Government securities are issued or guaranteed by a federal agency or instrumentality acting under federal authority. Some government securities, including those issued by Government National Mortgage Association ("Ginnie Mae"), are supported by the full faith and credit of the United States and are guaranteed only as to the timely payment of interest and principal.

Other government securities receive support through federal subsidies, loans or other benefits but are not backed by the full faith and credit of the United States. For example, the U.S. Treasury is authorized to purchase specified amounts of securities issued by (or otherwise make funds available to) the Federal Home Loan Bank System, Federal Home Loan Mortgage Corporation ("Freddie Mac") and Federal National Mortgage Association ("Fannie Mae") in support of such obligations.

Some government agency securities have no explicit financial support, and are supported only by the credit of the applicable agency, instrumentality or corporation. The U.S. government has provided financial support to Freddie Mac and Fannie Mae, but there is no assurance that it will support these or other agencies in the future. Investors regard government securities as having minimal credit risks, but not as low as Treasury securities.

The Fund treats mortgage-backed securities guaranteed by a federal agency or instrumentality as government securities. Although such a guarantee helps protect against credit risk, it does not eliminate it entirely or reduce other risks.

***Additional Information Related to Freddie Mac and Fannie Mae.*** The extreme and unprecedented volatility and disruption that impacted the capital and credit markets beginning in 2008 led to market concerns regarding the ability of Freddie Mac and Fannie Mae to withstand future credit losses associated with securities held in their investment portfolios, and on which they provide guarantees, without the direct support of the federal government. On September 7, 2008, Freddie Mac and Fannie Mae were placed under the conservatorship of the Federal Housing Finance Agency (FHFA). Under the plan of conservatorship, the FHFA assumed control of, and generally has the power to direct, the operations of Freddie Mac and Fannie Mae, and is empowered to exercise all powers collectively held by their respective shareholders, directors and officers, including the power to: (1) take over the assets of and operate Freddie Mac and Fannie Mae with all the powers of the shareholders, the directors and the officers of Freddie Mac and Fannie Mae and conduct all business of Freddie Mac and Fannie Mae; (2) collect all obligations and money due to Freddie Mac and Fannie Mae; (3) perform all functions of Freddie Mac and Fannie Mae which are consistent with the conservator's appointment; (4) preserve and conserve the assets and property of Freddie Mac and Fannie Mae; and (5) contract for assistance in fulfilling any function, activity, action or duty of the conservator.

In connection with the actions taken by the FHFA, the Treasury has entered into certain preferred stock purchase agreements (SPAs) with each of Freddie Mac and Fannie Mae which establish the Treasury as the holder of a new class of senior preferred stock in each of Freddie Mac and Fannie Mae. The senior preferred stock was issued in connection with financial contributions from the Treasury to Freddie Mac and Fannie Mae. Although the SPAs are subject to amendment from time to time, currently the Treasury is obligated to provide such financial contributions up to an aggregate maximum amount determined by a formula set forth in the SPAs, and until such aggregate maximum amount is reached, there is not a specific end date to the Treasury's obligations.

**2**

------

The future status and role of Freddie Mac and Fannie Mae could be impacted by (among other things) the actions taken and restrictions placed on Freddie Mac and Fannie Mae by the FHFA in its role as conservator, the restrictions placed on Freddie Mac's and Fannie Mae's operations and activities under the SPAs, market responses to developments at Freddie Mac and Fannie Mae, downgrades or upgrades in the credit ratings assigned to Freddie Mac and Fannie Mae by nationally recognized statistical rating organizations (NRSROs) or ratings services, and future legislative and regulatory action that alters the operations, ownership, structure and/or mission of these institutions, each of which may, in turn, impact the value of, and cash flows on, any securities guaranteed by Freddie Mac and Fannie Mae.

In addition, the future of Freddie Mac and Fannie Mae, and other U.S. government-sponsored enterprises that are not backed by the full faith and credit of the U.S. government (GSEs), remains in question as the U.S. government continues to consider options ranging from structural reform, nationalization, privatization, or consolidation, to outright elimination. The issues that have led to significant U.S. government support for Freddie Mac and Fannie Mae have sparked serious debate regarding the continued role of the U.S. government in providing mortgage loan liquidity.

**Asset-Backed Securities (A Fixed-Income Security)** 

Asset-backed securities are payable from pools of obligations other than mortgages. Most asset-backed securities involve consumer or commercial debts with maturities of less than 10 years. However, almost any type of fixed-income assets (including other fixed-income securities) may be used to create an asset-backed security. Asset-backed securities may take the form of commercial paper, notes or pass through certificates. Asset-backed securities have prepayment risks. Like CMOs, asset-backed securities may be structured like Floaters, Inverse Floaters, IOs and POs.

**Mortgage-Backed Securities (A Fixed-Income Security)** 

An MBS is a type of pass-through security, which is a pooled debt obligation repackaged as interests that pass principal and interest through an intermediary to investors. In the case of MBS, the ownership interests are issued by a trust and represent participation interests in pools of adjustable and fixed-rate mortgage loans. MBS are most commonly issued or guaranteed by the U.S. government (or one of its agencies or instrumentalities) ("agency MBS"), but also may be issued or guaranteed by private entities ("non-agency MBS"). Unlike conventional debt obligations, MBS provide monthly payments derived from the monthly interest and principal payments (including any prepayments) made by the individual borrowers on the pooled mortgage loans. Most MBS make these payments monthly; however, certain MBS are backed by mortgage loans which do not generate monthly payments but rather generate payments less frequently.

The mortgage loan collateral for non-agency MBS consists of residential mortgage loans that do not conform to GSEs underwriting guidelines. Non-agency MBS generally offer a higher yield than agency MBS because there are no direct or indirect government guarantees of payment.

The non-agency and agency MBS acquired by the Fund could be secured by fixed-rate mortgages, adjustable-rate mortgages or hybrid adjustable-rate mortgages. Adjustable-rate mortgages are mortgages whose interest rates are periodically reset when market rates change. A hybrid adjustable-rate mortgage ("hybrid ARM") is a type of mortgage in which the interest rate is fixed for a specified period and then resets periodically, or floats, for the remaining mortgage term. Hybrid ARMs are usually referred to by their fixed and floating periods. For example, a "5/1 ARM" refers to a mortgage with a five-year fixed interest rate period, followed by 25 annual interest rate adjustment periods.

Investments in MBS expose the Fund to interest rate, prepayment and credit risks.

**Collateralized Mortgage Obligations (A Type of Mortgage-Backed Security)** 

CMOs, including interests in real estate mortgage investment conduits (REMICs), allocate payments and prepayments from an underlying pass-through certificate among holders of different classes of mortgage-backed securities. This creates different prepayment and interest rate risks for each CMO class. The degree of increased or decreased prepayment risks depends upon the structure of the CMOs. However, the actual returns on any type of mortgage-backed security depend upon the performance of the underlying pool of mortgages, which no one can predict with certainty and will vary among pools.

**Sequential CMOs (A Type of CMO)** 

In a sequential pay CMO, one class of CMOs receives all principal payments and prepayments. The next class of CMOs receives all principal payments after the first class is paid off. This process repeats for each sequential class of CMO. As a result, each class of sequential pay CMOs reduces the prepayment risks of subsequent classes.

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**PACs, TACs and Companion Classes (Types of CMOs)** 

More sophisticated CMOs include planned amortization classes (PACs) and targeted amortization classes (TACs). PACs and TACs are issued with companion classes. PACs and TACs receive principal payments and prepayments at a specified rate. The companion classes receive principal payments and prepayments in excess of the specified rate. In addition, PACs will receive the companion classes' share of principal payments, if necessary, to cover a shortfall in the prepayment rate. This helps PACs and TACs to control prepayment risks by increasing the risks to their companion classes.

**IOs and POs (Types of CMOs)** 

CMOs may allocate interest payments to one class ("Interest Only" or IOs) and principal payments to another class ("Principal Only" or POs). POs increase in value when prepayment rates increase. In contrast, IOs decrease in value when prepayments increase, because the underlying mortgages generate less interest payments. However, IOs tend to increase in value when interest rates rise (and prepayments decrease), making IOs a useful hedge against interest rate risks.

**Floaters and Inverse Floaters (Types of CMOs)** 

Another variant allocates interest payments between two classes of CMOs. One class ("Floaters") receives a share of interest payments based upon a market index such as the London Interbank Offered Rate (LIBOR). The other class ("Inverse Floaters") receives any remaining interest payments from the underlying mortgages. Floater classes receive more interest (and Inverse Floater classes receive correspondingly less interest) as interest rates rise. This shifts prepayment and interest rate risks from the Floater to the Inverse Floater class, reducing the price volatility of the Floater class and increasing the price volatility of the Inverse Floater class.

**Z Classes and Residual Classes (Types of CMOs)** 

CMOs must allocate all payments received from the underlying mortgages to some class. To capture any unallocated payments, CMOs generally have an accrual (Z) class. Z classes do not receive any payments from the underlying mortgages until all other CMO classes have been paid off. Once this happens, holders of Z class CMOs receive all payments and prepayments. Similarly, REMICs have residual interests that receive any mortgage payments not allocated to another REMIC class.

**Non-Governmental Mortgage-Backed Securities (A Type of Mortgage-Backed Security)** 

Non-governmental, mortgage-backed securities (including non-governmental CMOs) are issued by private entities, rather than by U.S. government agencies. The non-governmental, mortgage-backed securities in which the Fund invests will be treated as mortgage related, asset-backed securities. These securities involve credit risk and liquidity risk. The degree of risks will depend significantly on the ability of borrowers to make payments on the underlying mortgages and the seniority of the security held by the Fund with respect to such payments.

**Commercial Mortgage-Backed Securities (A Type of Mortgage-Backed Security)** 

Commercial mortgage-backed securities (CMBS) represent interests in mortgage loans on commercial real estate, such as loans for hotels, shopping centers, office buildings and apartment buildings. Generally, the interest and principal payments on these loans are passed on to investors in CMBS according to a schedule of payments. The Fund may invest in individual CMBS issues or, alternately, may gain exposure to the overall CMBS market by investing in a derivative contract, the performance of which is related to changes in the value of a domestic CMBS index. The risks associated with CMBS reflect the risks of investing in the commercial real estate securing the underlying mortgage loans and are therefore different from the risks of other types of MBS. Additionally, CMBS may expose the Fund to interest rate, liquidity and credit risks.

**Municipal Securities (A Fixed-Income Security)** 

Municipal securities are issued by states, counties, cities and other political subdivisions and authorities. Although many municipal securities are exempt from federal income tax, the Fund may invest in taxable municipal securities.

**Bank Instruments (A Fixed-Income Security)** 

Bank instruments are unsecured, interest-bearing deposits with banks. Bank instruments include, but are not limited to, bank accounts, time deposits, certificates of deposit and banker's acceptances. Yankee instruments are denominated in U.S. dollars and issued by U.S. branches of foreign banks. Eurodollar instruments are denominated in U.S. dollars and issued by non-U.S. branches of U.S. or foreign banks.

**Credit Enhancement** 

Common types of credit enhancement include guarantees, letters of credit, bond insurance and surety bonds. Credit enhancement also includes arrangements where securities or other liquid assets secure payment of a fixed-income security. If a default occurs, these assets may be sold and the proceeds paid to security's holders. Either form of credit enhancement reduces credit risks by providing another source of payment for a fixed-income security.

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**Convertible Securities (A Fixed-Income Security)**

Convertible securities are fixed-income securities or preferred stocks that the Fund has the option to exchange for equity securities at a specified conversion price. The option allows the Fund to realize additional returns if the market price of the equity securities exceeds the conversion price. For example, the Fund may hold fixed-income securities that are convertible into shares of common stock at a conversion price of $10 per share. If the market value of the shares of common stock reached $12, the Fund could realize an additional $2 per share by converting its fixed-income securities.

Convertible securities have lower yields than comparable fixed-income securities. In addition, at the time a convertible security is issued, the conversion price exceeds the market value of the underlying equity securities. Thus, convertible securities may provide lower returns than non-convertible, fixed-income securities or equity securities depending upon changes in the price of the underlying equity securities. However, convertible securities permit the Fund to realize some of the potential appreciation of the underlying equity securities with less risk of losing its initial investment.

The Fund treats convertible securities as fixed-income securities for purposes of its investment policies and limitations, because of their unique characteristics.

**Foreign Exchange Contracts** 

In order to convert U.S. dollars into the currency needed to buy a foreign security, or to convert foreign currency received from the sale of a foreign security into U.S. dollars, the Fund may enter into spot currency trades. In a spot trade, the Fund agrees to exchange one currency for another at the current exchange rate. The Fund may also enter into derivative contracts in which a foreign currency is an underlying asset. The exchange rate for currency derivative contracts may be higher or lower than the spot exchange rate. Use of these derivative contracts may increase or decrease the Fund's exposure to currency risks.

**Real Estate Investment Trusts (REITs)** 

REITs are real estate investment trusts (including foreign REITs and REIT-like entities) that lease, operate and finance commercial real estate. REITs in the United States are exempt from federal corporate income tax if they limit their operations and distribute most of their income. Such tax requirements limit a U.S. REIT's ability to respond to changes in the commercial real estate market.

**Derivative Contracts** 

Derivative contracts are financial instruments that derive their value from underlying securities, commodities, currencies, indices or other assets or instruments, including other derivative contracts (each a "Reference Instrument" and collectively, "Reference Instruments"). The most common types of derivative contracts are swaps, futures and options, and the major asset classes include interest rates, equities, commodities and foreign exchange. Each party to a derivative contract may sometimes be referred to as a "counterparty." Some derivative contracts require payments relating to an actual, future trade involving the Reference Instrument. These types of derivatives are frequently referred to as "physically settled" derivatives. Other derivative contracts require payments relating to the income or returns from, or changes in the market value of, a Reference Instrument. These types of derivatives are known as "cash settled" derivatives, since they require cash payments in lieu of delivery of the Reference Instrument.

Many derivative contracts are traded on exchanges. In these circumstances, the relevant exchange sets all the terms of the contract except for the price. Parties to an exchange-traded derivative contract make payments through the exchange. Most exchanges require traders to maintain margin accounts through their brokers to cover their potential obligations to the exchange. Parties to the contract make or collect daily payments to the margin accounts to reflect losses (or gains), respectively, in the value of their contracts. This protects traders against a potential default by their counterparty. Trading contracts on an exchange also allows traders to hedge or mitigate certain risks, or carry out more complex trading strategies by entering into offsetting contracts.

For example, the Fund could close out an open contract to buy an asset at a future date by entering into an offsetting contract to sell the same asset on the same date. If the offsetting sale price is more than the original purchase price, the Fund realizes a gain; if it is less, the Fund realizes a loss. Exchanges may limit the amount of open contracts permitted at any one time. Such limits may prevent the Fund from closing out a position. If this happens, the Fund will be required to keep the contract open (even if it is losing money on the contract), and to make any payments required under the contract (even if it has to sell portfolio securities at unfavorable prices to do so). Inability to close out a contract could also harm the Fund by preventing it from disposing of or trading any assets it has been using to secure its obligations under the contract.

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The Fund may also trade derivative contracts over-the-counter (OTC), meaning off-exchange, in transactions negotiated directly between the Fund and an eligible counterparty, which may be a financial institution. OTC contracts do not necessarily have standard terms, so they may be less liquid and more difficult to close out than exchange-traded derivative contracts. In addition, OTC contracts with more specialized terms may be more difficult to value than exchange-traded contracts, especially in times of financial stress.

The market for swaps and other OTC derivatives was largely unregulated prior to the enactment of federal legislation known as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"). Regulations enacted by the Commodity Futures Trading Commission (the "CFTC") under the Dodd-Frank Act require the Fund to clear certain types of swap contracts (including certain interest rate and credit default swaps) through a central clearinghouse known as a derivatives clearing organization (DCO).

To clear a swap through a DCO, the Fund will submit the contract to, and post margin with, a futures commission merchant (FCM) that is a clearinghouse member. The Fund may enter into the swap with a counterparty other than the FCM and arrange for the contract to be transferred to the FCM for clearing or enter into the contract with the FCM itself. If the Fund must centrally clear a transaction, the CFTC's regulations also generally require that the swap be executed on a registered exchange (either a designated contract market (DCM) or swap execution facility (SEF)). Central clearing is presently required only for certain swaps; the CFTC is expected to impose a mandatory central clearing requirement for additional derivative instruments over time.

DCOs, DCMs, SEFs and FCMs are all subject to regulatory oversight by the CFTC. In addition, certain derivative market participants that act as market makers, and engage in a significant amount of "dealing" activity are as also required to register as swap dealers with the CFTC. Among other things, swap dealers are subject to minimum capital requirements and business conduct standards and must also post and collect initial and variation margin on uncleared swaps with certain of their counterparties. Because of this, if the Fund enters into uncleared swaps with any swap dealers, it may be subject to initial and variation margin requirements that could impact the Fund's ability to enter into swaps in the OTC market, including making transacting in uncleared swaps significantly more expensive.

At this point in time, most of the Dodd-Frank Act has been fully implemented, though a small number of remaining rulemakings are unfinished or are subject to phase-in periods. Any future regulatory or legislative activity would not necessarily have a direct, immediate effect upon the Fund, though it is within the realm of possibility that, upon implementation of these measures or any future measures, they could potentially limit or completely restrict the ability of the Fund to use these instruments as a part of its investment strategy, increase the costs of using these instruments or make them less effective.

Depending on how the Fund uses derivative contracts and the relationships between the market value of a derivative contract and the Reference Instrument, derivative contracts may increase or decrease the Fund's exposure to the risks of the Reference Instrument and may also expose the Fund to liquidity and leverage risk. OTC contracts also expose the Fund to credit risk in the event that a counterparty defaults on the contract, although this risk may be mitigated by submitting the contract for clearing through a DCO, or certain other factors, such as collecting margin from the counterparty.

The Fund may invest in a derivative contract if it is permitted to own, invest in or otherwise have economic exposure to the Reference Instrument. The Fund is not required to own a Reference Instrument in order to buy or sell a derivative contract relating to that Reference Instrument. The Fund may trade in the following specific types and/or combinations of derivative contracts:

**Futures Contracts (A Type of Derivative)** 

Futures contracts provide for the future sale by one party and purchase by another party of a specified amount of a Reference Instrument at a specified price, date and time. Entering into a contract to buy a Reference Instrument is commonly referred to as buying a contract or holding a long position in the asset. Entering into a contract to sell a Reference Instrument is commonly referred to as selling a contract or holding a short position in the Reference Instrument. Futures contracts are considered to be commodity contracts. The Adviser has claimed an exclusion from the definition of the term "commodity pool operator" under the Commodity Exchange Act with respect to the Fund and, therefore, is not subject to registration or regulation with respect to the Fund. Futures contracts traded OTC are frequently referred to as forward contracts. The Fund can buy or sell financial futures (such as interest rate futures, index futures and security futures), as well as currency futures and currency forward contracts.

**Interest Rate Futures** 

An interest rate futures contract is an exchange-traded contract for which the Reference Instrument is an interest-bearing, fixed-income security or an inter-bank deposit. Two examples of common interest rate futures contracts are U.S. Treasury futures contracts and Eurodollar futures contracts. The Reference Instrument for a U.S. Treasury futures contract is a U.S. Treasury security. The Reference Instrument for a Eurodollar futures contract is the London Interbank Offered Rate (commonly referred to as LIBOR); Eurodollar futures contracts enable the purchaser to obtain a fixed rate for the lending of funds over a stated period of time and the seller to obtain a fixed rate for a borrowing of funds over that same period.

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**Index Futures** 

An index futures contract is an exchange-traded contract to make or receive a payment based upon changes in the value of an index. An index is a statistical composite that measures changes in the value of designated Reference Instruments within the index.

**Security Futures** 

A security futures contract is an exchange-traded contract to purchase or sell in the future a specific quantity of a security (other than a Treasury security) or a narrow-based securities index at a certain price. Presently, the only available security futures contracts use shares of a single equity security as the Reference Instrument. However, it is possible that in the future, security futures contracts will be developed that use a single fixed-income security as the Reference Instrument.

**Currency Futures and Currency Forward Contracts (Types of Futures Contracts)** 

A currency futures contract is an exchange-traded contract to buy or sell a particular currency at a specific price at some time in the future (commonly three months or more). A currency forward contract is not an exchange-traded contract and represents an obligation to purchase or sell a specific currency at a future date, at a price set at the time of the contract and for a period agreed upon by the parties which may be either a window of time or a fixed number of days from the date of the contract. Currency futures and forward contracts are highly volatile, with a relatively small price movement potentially resulting in substantial gains or losses to the Fund. Additionally, the Fund may lose money on currency futures and forward contracts if changes in currency rates do not occur as anticipated or if the Fund's counterparty to the contract were to default.

**Option Contracts (A Type of Derivative)** 

Option contracts (also called "options") are rights to buy or sell a Reference Instrument for a specified price (the "exercise price") during, or at the end of, a specified period. The seller (or writer) of the option receives a payment, or premium, from the buyer, which the writer keeps regardless of whether the buyer uses (or exercises) the option. Options may be bought or sold on a wide variety of Reference Instruments. Options that are written on futures contracts will be subject to margin requirements similar to those applied to futures contracts.

The Fund may buy and/or sell the following types of options:

**Call Options** 

A call option gives the holder (buyer) the right to buy the Reference Instrument from the seller (writer) of the option. The Fund may use call options in the following ways:

◾ Buy call options on a Reference Instrument in anticipation of an increase in the value of the Reference Instrument; and

◾ Write call options on a Reference Instrument to generate income from premiums and in anticipation of a decrease or only limited increase in the value of the Reference Instrument. If the Fund writes a call option on a Reference Instrument that it owns and that call option is exercised, the Fund foregoes any possible profit from an increase in the market price of the Reference Instrument over the exercise price plus the premium received.

**Put Options** 

A put option gives the holder the right to sell the Reference Instrument to the writer of the option. The Fund may use put options in the following ways:

◾ Buy put options on a Reference Instrument in anticipation of a decrease in the value of the Reference Instrument; and

◾ Write put options on a Reference Instrument to generate income from premiums, and in anticipation of an increase or only limited decrease in the value of the Reference Instrument. In writing puts, there is a risk that the Fund may be required to take delivery of the Reference Instrument when its current market price is lower than the exercise price.

The Fund may also buy or write options, as needed, to close out existing option positions.

Finally, the Fund may enter into combinations of options contracts in an attempt to benefit from changes in the prices of those options contracts (without regard to changes in the value of the Reference Instrument).

**Swap Contracts (A Type of Derivative)** 

A swap contract (also known as a "swap") is a type of derivative contract in which two parties agree to pay each other (swap) the returns derived from Reference Instruments. Most swaps do not involve the delivery of the underlying assets by either party, and the parties might not own the Reference Instruments. The payments are usually made on a net basis so that, on any given day, the Fund would receive (or pay) only the amount by which its payment under the contract is less than (or exceeds) the amount of the other party's payment. Swap agreements are sophisticated instruments that can take many different forms and are known by a variety of names. Common swap agreements that the Fund may use include:

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**Interest Rate Swaps** 

Interest rate swaps are contracts in which one party agrees to make regular payments equal to a fixed or floating interest rate times a stated principal amount (commonly referred to as a "notional principal amount") in return for payments equal to a different fixed or floating rate times the same principal amount, for a specific period. For example, a $10 million London Interbank Offered Rate (commonly referred to as LIBOR) swap would require one party to pay the equivalent of the London Interbank Offered Rate of interest (which fluctuates) on $10 million principal amount in exchange for the right to receive the equivalent of a stated fixed rate of interest on $10 million principal amount.

**Caps and Floors (A Type of Swap Contract)** 

Caps and Floors are contracts in which one party agrees to make payments only if an interest rate or index goes above (Cap) or below (Floor) a certain level in return for a fee from the other party.

**Currency Swaps** 

Currency swaps are contracts which provide for interest payments in different currencies. The parties might agree to exchange the notional principal amounts of the currencies as well (commonly called a "foreign exchange swap").

**Derivatives Regulation and Asset Coverage** 

The regulation of the U.S. and non-U.S. derivatives markets has undergone substantial change in recent years and such change may continue. In addition, effective August 19, 2022, Rule 18f-4 (the "Derivatives Rule") under the Investment Company Act of 1940, as amended (the "1940 Act"), replaced the asset segregation framework previously used by funds to comply with limitations on leverage imposed by the 1940 Act. The Derivatives Rule generally mandates that a fund either limit derivatives exposure to 10% or less of its net assets, or in the alternative implement: (i) limits on leverage calculated based value-at-risk (VAR); and (ii) a written derivatives risk management program (DRMP) administered by a derivatives risk manager appointed by the Fund's Board, including a majority of the independent Board members, that is periodically reviewed by the Board.

In accordance with the requirements of Section 18 of the 1940 Act, any borrowings by the Fund will be made only to the extent the value of its assets, less its liabilities other than borrowings, is equal to at least 300% of all of its borrowings (the "300% Asset Coverage Ratio"). The Derivatives Rule permits the Fund to enter into reverse repurchase agreements and similar financing transactions, notwithstanding limitations on the issuance of senior securities under Section 18 of the 1940 Act, provided that the Fund either (i) treats these transactions as derivatives transactions under the Derivatives Rule, or (ii) ensures that the 300% Asset Coverage Ratio with respect to such transactions and any other borrowings in the aggregate. While reverse repurchase agreements or similar financing transactions aggregated with other indebtedness do not need to be included in the calculation of whether a fund satisfies the Limited Derivatives Users exception, for funds subject to the VAR testing requirement, reverse repurchase agreements and similar financing transactions must be included for purposes of such testing whether treated as derivatives transactions or not. See "Borrowing Money and Issuing Senior Securities" and "Additional Information" below.

**INTER-FUND BORROWING AND THIRD-PARTY LENDING ARRANGEMENTS** 

**Inter-Fund Borrowing** 

The Securities and Exchange Commission (SEC) has granted an exemption that permits the Fund and all other funds ("Federated Hermes funds") advised by subsidiaries of Federated Hermes, Inc. ("Federated Hermes," formerly, Federated Investors, Inc.) to lend and borrow money for certain temporary purposes directly to and from other Federated Hermes funds. Participation in this inter-fund lending program is voluntary for both borrowing and lending Federated Hermes funds, and an inter-fund loan is only made if it benefits each participating Federated Hermes fund. Federated Hermes administers the program according to procedures approved by the Fund's Board, and the Board monitors the operation of the program. Any inter-fund loan must comply with certain conditions set out in the exemption, which are designed to assure fairness and protect all participating Federated Hermes funds.

For example, inter-fund lending is permitted only: (a) to meet shareholder redemption requests; (b) to meet commitments arising from "failed" trades; and (c) for other temporary purposes. All inter-fund loans must be repaid in seven days or less. The Fund's participation in this program must be consistent with its investment policies and limitations, and must meet certain percentage tests. Inter-fund loans may be made only when the rate of interest to be charged is more attractive to the lending Federated Hermes fund than market-competitive rates on overnight repurchase agreements ("Repo Rate") *and* more attractive to the borrowing Federated Hermes fund than the rate of interest that would be charged by an unaffiliated bank for short-term borrowings ("Bank Loan Rate"), as determined by the Board. The interest rate imposed on inter-fund loans is the average of the Repo Rate and the Bank Loan Rate.

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**Third-Party 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. 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 1940 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 the date of this Statement of Additional Information, there were no outstanding loans. During the most recently ended fiscal year, the Fund did not utilize the LOC.

**LIQUIDITY RISK MANAGEMENT PROGRAM** 

The Fund has adopted and implemented a written liquidity risk management program (LRMP) and related procedures to assess and manage the liquidity risk of the Fund in accordance with Section 22(e) of the 1940 Act and Rule 22e-4 thereunder. The Board has designated the Adviser, together with Federated Hermes, Inc.'s ("Federated Hermes," formerly Federated Investors, Inc.) other affiliated registered investment advisory subsidiaries that serve as investment advisers to other Federated Hermes funds, to collectively serve as the administrator of the LRMP and the related procedures (the "Administrator"). Rule 22e-4 defines "liquidity risk" as the risk that the Fund will be unable to meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors' interests in the Fund. As a part of the LRMP, the Administrator is responsible for classifying the liquidity of the Fund's portfolio investments in accordance with Rule 22e-4. As part of the LRMP, the Administrator is also responsible for assessing, managing and periodically reviewing the Fund's liquidity risk, for making periodic reports to the Board and the SEC regarding the liquidity of the Fund's investments, and for notifying the Board and the SEC of certain liquidity events specified in Rule 22e-4. The liquidity of the Fund's portfolio investments is determined based on relevant market, trading and investment-specific considerations under the LRMP.

Investment Risks

There are many risk factors which may affect an investment in the Fund. The Fund's principal risks are described in its Prospectus. The following information is either additional information in respect of a principal risk factor referenced in the Prospectus or information in respect of a non-principal risk factor applicable to the Fund (in which case there is no related disclosure in the Prospectus).

**Prepayment Risk** 

Unlike traditional fixed-income securities, which pay a fixed rate of interest until maturity (when the entire principal amount is due) payments on mortgage-backed securities include both interest and a partial payment of principal. Partial payment of principal may be comprised of scheduled principal payments as well as unscheduled payments from the voluntary prepayment, refinancing or foreclosure of the underlying loans. These unscheduled prepayments of principal create risks that can adversely affect a Fund holding mortgage-backed securities.

For example, when interest rates decline, the values of mortgage-backed securities generally rise. However, when interest rates decline, unscheduled prepayments can be expected to accelerate, and the Fund would be required to reinvest the proceeds of the prepayments at the lower interest rates then available. Unscheduled prepayments would also limit the potential for capital appreciation on mortgage-backed securities.

Conversely, when interest rates rise, the values of mortgage-backed securities generally fall. Since rising interest rates typically result in decreased prepayments, this could lengthen the average lives of mortgage-backed securities, and cause their value to decline more than traditional fixed-income securities.

Generally, homeowners have the option to prepay their mortgages at any time without penalty. Homeowners frequently refinance high interest rate mortgages when mortgage rates fall. This results in the prepayment of mortgage-backed securities with higher interest rates. Conversely, prepayments due to refinancing decrease when mortgage rates increase. This extends the life of mortgage-backed securities with lower interest rates. Other economic factors can also lead to increases or decreases in prepayments. Increases in prepayments of high interest rate, mortgage-backed securities, or decreases in prepayments of lower interest rate, mortgage-backed securities, may reduce their yield and price. These factors, particularly the relationship between interest rates and mortgage prepayments, makes the price of mortgage-backed securities more volatile than many other types of fixed-income securities with comparable credit risks.

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Generally, mortgage-backed securities compensate for the increased risk associated with prepayments by paying a higher yield. The additional interest paid for risk is measured by the difference between the yield of a mortgage-backed security and the yield of a U.S. Treasury security or other appropriate benchmark with a comparable maturity (the "spread"). An increase in the spread will cause the price of the mortgage-backed security to decline. Spreads generally increase in response to adverse economic or market conditions. Spreads may also increase if the security is perceived to have an increased prepayment risk or is perceived to have less market demand.

The Fund may have to reinvest the proceeds of mortgage prepayments in other fixed-income securities with lower interest rates, higher prepayment risks or other less favorable characteristics.

**Risk of Foreign Investing** 

Foreign securities pose additional risks because foreign economic or political conditions may be less favorable than those of the United States. Foreign financial markets may also have fewer investor protections. Securities in foreign markets may also be subject to taxation policies that reduce returns for U.S. investors.

Foreign companies and national governments may not provide information (including financial statements) as frequently or to as great an extent as companies in the United States. Foreign companies and national governments may also receive less coverage than U.S. companies by market analysts and the financial press. In addition, foreign countries may lack uniform accounting, auditing and financial reporting standards or regulatory requirements comparable to those applicable to U.S. companies. These factors may prevent the Fund and its Adviser from obtaining information concerning foreign companies and national governments that is as frequent, extensive and reliable as the information available concerning companies in the United States. In addition, foreign countries may have restrictions on foreign ownership of securities or may impose exchange controls, capital flow restrictions or repatriation restrictions that could adversely affect the Fund's investments.

The foreign, sovereign debt securities the Fund purchases involve specific risks, including that: (i) the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or interest when it becomes due because of political constraints, cash flow problems and other national economic factors; (ii) governments may default on their sovereign debt, which may require holders of such sovereign debt to participate in debt rescheduling or additional lending to defaulting governments; and (iii) there is no bankruptcy proceedings by which defaulted sovereign debt may be collected in whole or in part.

Legal remedies available to investors in certain foreign countries may be more limited than those available with respect to investments in the United States or in other foreign countries. The laws of some foreign countries may limit the Fund's ability to invest in securities of certain issuers organized under the laws of those foreign countries.

**CURRENCY RISK** 

Exchange rates for currencies fluctuate daily. The combination of currency risk and market risks tends to make securities traded in foreign markets more volatile than securities traded exclusively in the United States. The Adviser attempts to manage currency risk by limiting the amount the Fund invests in securities denominated in a particular currency. However, diversification will not protect the Fund against a general increase in the value of the U.S. dollar relative to other currencies.

Investing in currencies or securities denominated in a foreign currency, entails risk of being exposed to a currency that may not fully reflect the strengths and weaknesses of the economy of the country or region utilizing the currency. In addition, it is possible that a currency (such as, for example, the euro) could be abandoned in the future by countries that have already adopted its use, and the effects of such an abandonment on the applicable country and the rest of the countries utilizing the currency are uncertain but could negatively affect the Fund's investments denominated in the currency. If a currency used by a country or countries is replaced by another currency, the Fund's Adviser would evaluate whether to continue to hold any investments denominated in such currency, or whether to purchase investments denominated in the currency that replaces such currency, at the time. Such investments may continue to be held, or purchased, to the extent consistent with the Fund's investment objective and permitted under applicable law.

Many countries rely heavily upon export-dependent businesses and any strength in the exchange rate between a currency and the U.S. dollar or other currencies can have either a positive or a negative effect upon corporate profits and the performance of investments in the country or region utilizing the currency. Adverse economic events within such country or region may increase the volatility of exchange rates against other currencies, subjecting the Fund's investments denominated in such country's or region's currency to additional risks.

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**European Union and eurozone Related risk** 

A number of countries in the European Union (EU), including certain countries within the EU that have adopted the euro (Eurozone), have experienced, and may continue to experience, severe economic and financial difficulties. Additional countries within the EU may also fall subject to such difficulties. These events could negatively affect the value and liquidity of the Fund's investments in euro-denominated securities and derivatives contracts, securities of issuers located in the EU or with significant exposure to EU issuers or countries. If the euro is dissolved entirely, the legal and contractual consequences for holders of euro-denominated obligations and derivative contracts would be determined by laws in effect at such time. Such investments may continue to be held, or purchased, to the extent consistent with the Fund's investment objective(s) and permitted under applicable law. These potential developments, or market perceptions concerning these and related issues, could adversely affect the value of the Shares.

Certain countries in the EU have had to accept assistance from supra-governmental agencies such as the International Monetary Fund, the European Stability Mechanism (the "ESM") or other supra-governmental agencies. The European Central Bank has also been intervening to purchase Eurozone debt in an attempt to stabilize markets and reduce borrowing costs. There can be no assurance that these agencies will continue to intervene or provide further assistance and markets may react adversely to any expected reduction in the financial support provided by these agencies. Responses to the financial problems by European governments, central banks and others including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences.

In addition, one or more countries may withdraw from the EU, and one or more countries within the Eurozone may abandon the euro. The impact of these actions, especially if they occur in a disorderly fashion, could be significant and far-reaching. On January 31, 2020, the United Kingdom (UK) left the EU, commonly referred to as "Brexit," and there commenced a transition period during which the EU and UK negotiated and agreed on the nature of their future relationship, with such agreements becoming effective on December 31, 2020. There is significant market uncertainty regarding Brexit's ramifications, and the range and potential implications of possible political, regulatory, economic and market outcomes are difficult to predict. This long-term uncertainty may affect other countries in the EU and elsewhere and may cause volatility within the EU, triggering prolonged economic downturns in certain countries within the EU. In addition, Brexit may create additional and substantial economic stresses for the UK, including a contraction of the UK economy and price volatility in UK stocks, decreased trade, capital outflows, devaluation of the British pound, wider corporate bond spreads due to uncertainty and declines in business and consumer spending as well as foreign direct investment. Brexit may also adversely affect UK-based financial firms, including certain subadvisers to the Federated Hermes Funds, that have counterparties in the EU or participate in market infrastructure (trading venues, clearing houses, settlement facilities) based in the EU. These events and the resulting market volatility may have an adverse effect on the performance of the Fund.

**ASSET-BACKED SECURITIES (ABS) Risk** 

The value of asset-backed securities (ABS) may be affected by certain factors such as interest rate risk, the availability of information concerning the pool of underlying assets and its structure, the creditworthiness of the servicing agent for the pool or the originator of the underlying assets and the ability of the servicing agent to service the underlying collateral. Under certain market conditions, ABS may be less liquid and may be difficult to value. Movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain types of ABS. Unscheduled prepayments of ABS may result in a loss of income if the proceeds are invested in lower-yielding securities. Conversely, in a rising interest rate environment, a declining prepayment rate will extend the average life of many ABS, which increases the risk of depreciation due to future increases in market interest rates. ABS can also be subject to the risk of default on the underlying assets.

**REAL ESTATE INVESTMENT TRUST RISK** 

Real estate investment trusts (REITs) are subject to risks associated with the ownership of real estate. Some REITs experience market risk due to investment in a limited number of properties, in a narrow geographic area, or in a single property type, which increases the risk that such REIT could be unfavorably affected by the poor performance of a single investment or investment type. These companies are also sensitive to factors such as changes in real estate values and property taxes, interest rates, cash flow of underlying real estate assets, supply and demand and the management skill and creditworthiness of the issuer. Borrowers could default on or sell investments that a REIT holds, which could reduce the cash flow needed to make distributions to investors. In addition, REITs may also be affected by tax and regulatory requirements impacting the REITs' ability to qualify for preferential tax treatments or exemptions. REITs require specialized management and pay management expenses. REITs also are subject to physical risks to real property, including weather, natural disasters, terrorist attacks, war, or other events that destroy real property.

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Foreign REITs and REIT-like entities can also be subject to currency risk, emerging market risk, limited public information, illiquid trading and the impact of local laws.

REITs include equity REITs and mortgage REITs. Equity REITs may be affected by changes in the value of the underlying property owned by the trusts, while mortgage REITs may be affected by the quality of any credit extended. Further, equity and mortgage REITs are dependent upon management skills and generally may not be diversified. Equity and mortgage REITs are also subject to heavy cash flow dependency, defaults by borrowers and self-liquidations. In addition, equity and mortgage REITs could possibly fail to qualify for tax-free pass-through of income under applicable tax laws or to maintain their exemptions from registration under the 1940 Act. The above factors may also adversely affect a borrower's or a lessee's ability to meet its obligations to the REIT. In the event of a default by a borrower or lessee, the REIT may experience delays in enforcing its rights as a mortgagee or lessor and may incur substantial costs associated with protecting its investments. In addition, even many of the larger REITs in the industry tend to be small- to medium-sized companies in relation to the equity markets as a whole.

Effective for taxable years beginning after December 31, 2017, the Tax Cuts and Jobs Act generally allows individuals and certain non-corporate entities, such as partnerships, a deduction for 20% of qualified REIT dividends. Related regulations allow a RIC to pass the character of its qualified REIT dividends through to its shareholders provided certain holding period requirements are met.

**Risk of Investing in Derivative Contracts and Hybrid Instruments** 

The Fund's exposure to derivative contracts and hybrid instruments (either directly or through its investment in another investment company) involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. First, changes in the value of the derivative contracts and hybrid instruments in which the Fund invests may not be correlated with changes in the value of the underlying Reference Instruments or, if they are correlated, may move in the opposite direction than originally anticipated. Second, while some strategies involving derivatives may reduce the risk of loss, they may also reduce potential gains or, in some cases, result in losses by offsetting favorable price movements in portfolio holdings. Third, there is a risk that derivative contracts and hybrid instruments may be erroneously priced or improperly valued and, as a result, the Fund may need to make increased cash payments to the counterparty. Fourth, exposure to derivative contracts and hybrid instruments may have tax consequences to the Fund and its shareholders. For example, derivative contracts and hybrid instruments may cause the Fund to realize increased ordinary income or short-term capital gains (which are treated as ordinary income for Federal income tax purposes) and, as a result, may increase taxable distributions to shareholders. In addition, under certain circumstances certain derivative contracts and hybrid instruments may cause the Fund to: (a) incur an excise tax on a portion of the income related to those contracts and instruments; and/or (b) reclassify, as a return of capital, some or all of the distributions previously made to shareholders during the fiscal year as dividend income. Fifth, a common provision in OTC derivative contracts permits the counterparty to terminate any such contract between it and the Fund, if the value of the Fund's total net assets declines below a specified level over a given time period. Factors that may contribute to such a decline (which usually must be substantial) include significant shareholder redemptions and/or a marked decrease in the market value of the Fund's investments. Any such termination of the Fund's OTC derivative contracts may adversely affect the Fund (for example, by increasing losses and/or costs, and/or preventing the Fund from fully implementing its investment strategies). Sixth, the Fund may use a derivative contract to benefit from a decline in the value of a Reference Instrument. If the value of the Reference Instrument declines during the term of the contract, the Fund makes a profit on the difference (less any payments the Fund is required to pay under the terms of the contract). Any such strategy involves risk. There is no assurance that the Reference Instrument will decline in value during the term of the contract and make a profit for the Fund. The Reference Instrument may instead appreciate in value creating a loss for the Fund. Seventh, a default or failure by a CCP or an FCM (also sometimes called a "futures broker"), or the failure of a contract to be transferred from an Executing Dealer to the FCM for clearing, may expose the Fund to losses, increase its costs, or prevent the Fund from entering or exiting derivative positions, accessing margin or fully implementing its investment strategies. The central clearing of a derivative and trading of a contract over a SEF could reduce the liquidity in, or increase costs of entering into or holding, any contracts. Finally, derivative contracts and hybrid instruments may also involve other risks described herein or in the Fund's Prospectus, such as interest rate, credit, liquidity and leverage risks.

**Risk Associated with the Investment Activities of Other Accounts** 

Investment decisions for the Fund are made independently from those of other accounts managed by the Adviser and accounts managed by affiliates of the Adviser. Therefore, it is possible that investment-related actions taken by such other accounts could adversely impact the Fund with respect to, for example, the value of Fund portfolio holdings, and/or prices paid to or received by the Fund on its portfolio transactions, and/or the Fund's ability to obtain or dispose of portfolio securities. Related considerations are discussed elsewhere in this SAI under "Brokerage Transactions and Investment Allocation."

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**LIBOR Risk** 

Certain derivatives or debt securities, or other financial instruments in which the Fund may invest, utilize the London Interbank Offered Rate (LIBOR) as the reference or benchmark rate for interest rate calculations.

LIBOR is a measure of the average interest rate at which major global banks can borrow from one another. LIBOR has historically been quoted in multiple currencies and tenors using data reported by a panel of private-sector banks. Following allegations of rate manipulation in 2012 and concerns regarding its thin liquidity, the use of LIBOR came under increasing pressure, and in July 2017, the UK Financial Conduct Authority, which regulates LIBOR, announced that it will stop encouraging banks to provide the quotations needed to sustain LIBOR. The ICE Benchmark Administration Limited, the administrator of LIBOR, ceased publishing most LIBOR tenors, including some USD LIBOR tenors, on December 31, 2021, and will cease publishing the remaining and most liquid USD LIBOR tenors no later than June 30, 2023. Regulators have encouraged the development of and transition to the use of alternative reference or benchmark rates.

While the transition away from LIBOR has become increasingly well-defined in advance of the anticipated discontinuation of LIBOR, the impact on certain debt securities, derivatives and other financial instruments remains uncertain. Further, the process for amending existing contracts or instruments to transition away from LIBOR remains unclear in the absence of global consensus.

It is expected that market participants will amend financial instruments referencing LIBOR to include fallback provisions and other measures that contemplate the discontinuation of LIBOR or other similar market disruption events. However, neither the effect of the transition process nor the viability of such measures is known. To facilitate the transition of legacy derivatives contracts referencing LIBOR, the International Swaps and Derivatives Association, Inc. launched a protocol to incorporate fallback provisions. However, there are obstacles to converting certain longer-term securities and transactions to a new benchmark or benchmarks. For example, certain proposed replacement rates to LIBOR, such as the Secured Overnight Financing Rate (SOFR), which is a broad measure of secured overnight U.S. Treasury repo rates, or the Bloomberg Short-Term Bank Yield Index (BSBY), a proprietary series of credit sensitive reference rates that incorporate bank credit spreads, are materially different from LIBOR, and changes in the applicable spread for financial instruments transitioning away from LIBOR will need to be made to accommodate the differences. In addition, regulators in foreign jurisdictions have proposed alternative replacement rates. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition to alternative rates may be exacerbated if an orderly transition to an alternative reference rate is not completed in a timely manner.

The effectiveness of multiple alternative reference rates as opposed to one primary reference rate has not been determined. The effectiveness of alternative reference rates used in new or existing financial instruments and products has also not yet been determined. As market participants transition away from LIBOR, LIBOR's usefulness may deteriorate, and these effects could be experienced until the permanent cessation of the majority of USD LIBOR rates in 2023. The transition process may lead to increased volatility and illiquidity in markets that currently rely on LIBOR to determine interest rates. LIBOR's deterioration may adversely affect the liquidity and/or market value of securities that use LIBOR as a benchmark interest rate, including securities and other financial instruments held by the Fund. Further, the utilization of an alternative reference rate, or the transition process to an alternative reference rate, may adversely affect the Fund's investment performance.

**LARGE SHAREHOLDER RISK** 

A significant percentage of the Fund's shares may be owned or controlled by a large shareholder, such as other funds or accounts, including those of which the Adviser or an affiliate of the Adviser may have investment discretion. Accordingly, the Fund can be subject to the potential for large scale inflows and outflows as a result of purchases and redemptions made by significant shareholders. These inflows and outflows could be significant and, if frequently occurring, could negatively affect the Fund's net asset value and performance and could cause the Fund to buy or sell securities at inopportune times in order to meet purchase or redemption requests. Investments in the Fund by other investment companies also can create conflicts of interests for the Adviser to the Fund and the investment adviser to the acquiring fund. For example, a conflict of interest can arise due to the possibility that the investment adviser to the acquiring fund could make a decision to redeem the acquiring fund's investment in the Fund. In the case of an investment by an affiliated fund, a conflict of interest can arise if, because of the acquiring fund's investment in the Fund, the Fund is able to garner more assets from third-party investors, thereby growing the Fund and increasing the management fees received by the Adviser, which could also be the investment adviser to the acquiring fund.

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**CYBERSECURITY AND OPERATIONAL RISK** 

Like other funds and business enterprises, Federated Hermes' business relies on the security and reliability of information and communications technology, systems and networks. Federated Hermes uses digital technology, including, for example, networked systems, email and the Internet, as well as mobile devices and "cloud"-based service offerings, to conduct business operations and engage clients, customers, employees, products, accounts, shareholders and relevant service providers, among others. Federated Hermes, as well as its funds and certain service providers, also generate, compile and process information for purposes of preparing and making filings or reports to governmental agencies, or providing reports or statements to customers, and a cybersecurity attack or incident that impacts that information, or the generation and filing processes, can prevent required regulatory filings and reports from being made, or reports or statements from being delivered, or cause the inadvertent release of confidential information (possibly resulting in the violation of applicable privacy laws). The use of the Internet and other electronic media and technology exposes the Fund, the Fund's shareholders, and the Fund's service providers, and their respective operations, to potential risks from cybersecurity attacks or incidents (collectively, "cyber-events"). The work-from-home environment necessitated by the novel coronavirus ("COVID-19") pandemic has increased the risk of cyber incidents given the increase in cyber attack surface stemming from the use of personal devices and non-office or personal technology.

Cyber-events can result from intentional (or deliberate) attacks or unintentional events by insiders (e.g., employees) or third parties, including cybercriminals, competitors, nation-states and "hacktivists," among others. Cyber-events can include, for example, phishing, credential harvesting or use of stolen access credentials, unauthorized access to systems, networks or devices (such as, for example, through "hacking" activity), structured query language attacks, infection from or spread of malware, ransomware, computer viruses or other malicious software code, corruption of data, exfiltration of data to malicious sites, the dark web or other locations or threat actors, and attacks (including, but not limited to, denial of service attacks on websites) which shut down, disable, slow, impair or otherwise disrupt operations, business processes, technology, connectivity or website or Internet access, functionality or performance. Like other funds and business enterprises, the Fund and its service providers have experienced, and will continue to experience, cyber-events on a daily basis. In addition to intentional cyber-events, unintentional cyber-events can occur, such as, for example, the inadvertent release of confidential information. Cyber-events can also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on the service providers' systems or websites rendering them unavailable to intended users or via "ransomware" that renders the systems inoperable until appropriate actions are taken. To date, cyber-events have not had a material adverse effect on the Fund's business operations or performance.

Cyber-events can affect, potentially in a material way, Federated Hermes' relationships with its customers, employees, products, accounts, shareholders and relevant service providers. Any cyber-event could adversely impact the Fund and its shareholders and cause the Fund to incur financial loss and expense, as well as face exposure to regulatory penalties, reputational damage, damage to employee perceptions of the company, and additional compliance costs associated with corrective measures and credit monitoring for impacted individuals. A cyber-event can cause the Fund, or its service providers, to lose proprietary information, suffer data corruption, lose operational capacity (such as, for example, the loss of the ability to process transactions, generate or make filings or deliver reports or statements, calculate the Fund's NAV, or allow shareholders to transact business or other disruptions to operations), and/or fail to comply with applicable privacy and other laws. Among other potentially harmful effects, cyber-events also can result in theft, unauthorized monitoring and failures in the physical infrastructure or operating systems that support the Fund and its service providers. In addition, cyber-events affecting issuers in which the Fund invests could cause the Fund's investments to lose value.

The Fund's Adviser and its relevant affiliates have established risk management systems reasonably designed to seek to reduce the risks associated with cyber-events. The Fund's Adviser employs various measures aimed at mitigating cybersecurity risk, including, among others, use of firewalls, system segmentation, system monitoring, virus scanning, periodic penetration testing, employee phishing training and an employee cybersecurity awareness campaign. Among other service provider management efforts, Federated Hermes also conducts due diligence on key service providers relating to cybersecurity. Federated Hermes has established a committee to oversee Federated Hermes' information security and data governance efforts, and updates on cyber-events and risks are reviewed with relevant committees, as well as Federated Hermes' and the Fund's Boards of Directors or Trustees (or a committee thereof), on a periodic (generally quarterly) basis (and more frequently when circumstances warrant) as part of risk management oversight responsibilities. However, there is no guarantee that the efforts of Federated Hermes, the Fund's Adviser or its affiliates, or other service providers, will succeed, either entirely or partially as there are limits on Federated Hermes' and the Fund's ability to prevent, detect or mitigate cyber-events. Among other reasons, the cybersecurity landscape is constantly evolving, the nature of malicious cyber-events is becoming increasingly sophisticated and the Fund's Adviser, and its relevant affiliates, cannot control the cyber systems and cybersecurity systems of issuers or third-party service providers.

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The Fund can be exposed to operational risk arising from a number of factors, including, but not limited to, human error, processing and communication errors, errors of the Fund's service providers, counterparties, or other third parties, failed or inadequate processes and technology or system failures. In addition, other disruptive events, including, but not limited to, natural disasters and public health crises (such as the COVID-19 pandemic), can adversely affect the Fund's ability to conduct business, in particular if the Fund's employees or the employees of its service providers are unable or unwilling to perform their responsibilities as a result of any such event. Even if the Fund's employees and the employees of its service providers are able to work remotely, those remote work arrangements could result in the Fund's business operations being less efficient than under normal circumstances, could lead to delays in its processing of transactions, and could increase the risk of cyber-events.

Investment Objective (and Policies) and Investment Limitations

The Fund's investment objective is to provide total return. The investment objective may not be changed by the Fund's Board without shareholder approval.

**Concentration** 

The Fund will not make investments that will result in the concentration of its investments in the securities of issuers primarily engaged in the same industry. For purposes of this restriction, the term concentration has the meaning set forth in the Investment Company Act of 1940 Act ("1940 Act"), any rule or order thereunder, or any SEC staff interpretation thereof. Government securities, municipal securities and bank instruments will not be deemed to constitute an industry.

**Underwriting** 

The Fund may not underwrite the securities of other issuers, except that the Fund may engage in transactions involving the acquisition, disposition or resale of its portfolio securities, under circumstances where it may be considered to be an underwriter under the Securities Act of 1933.

**Investing in Commodities** 

The Fund may not purchase or sell physical commodities, provided that the Fund may purchase securities of companies that deal in commodities. For purposes of this restriction, investments in transactions involving futures contracts and options, forward currency contracts, swap transactions and other financial contracts or derivative instruments that settle by payment of cash are not deemed to be investments in commodities.

**Investing in Real Estate** 

The Fund may not purchase or sell real estate, provided that this restriction does not prevent the Fund from investing in issuers which invest, deal or otherwise engage in transactions in real estate or interests therein, or investing in securities that are secured by real estate or interests therein. The Fund may exercise its rights under agreements relating to such securities, including the right to enforce security interests and to hold real estate acquired by reason of such enforcement until that real estate can be liquidated in an orderly manner.

**Borrowing Money and Issuing Senior Securities** 

The Fund may borrow money, directly or indirectly, and issue senior securities to the maximum extent permitted under the 1940 Act, any rule or order thereunder or any SEC staff interpretation thereof.

**Lending** 

The Fund may not make loans, provided that this restriction does not prevent the Fund from purchasing debt obligations, entering into repurchase agreements, lending its assets to broker/dealers or institutional investors and investing in loans, including assignments and participation interests.

**The above limitations cannot be changed unless authorized by the Board and by the "vote of a majority of the Fund's outstanding voting securities," as defined by the 1940 Act. The following limitations, however, may be changed by the Board without shareholder approval. Shareholders will be notified before any material change in these limitations becomes effective.** 

**Illiquid Investments** 

The Fund will not make investments in holdings for which there is no readily available market, or enter into repurchase agreements or purchase time deposits that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment, if immediately after and as a result, the value of such investments would exceed, in the aggregate, 15% of the Fund's net assets.

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**Purchases on Margin** 

The Fund will not purchase securities on margin, provided that the Fund may obtain short-term credits necessary for the clearance of purchases and sales of securities and further provided that the Fund may make margin deposits in connection with its use of financial options and futures, forward and spot currency contracts, swap transactions and other financial contracts or derivative instruments.

**Pledging Assets** 

The Fund will not mortgage, pledge or hypothecate any of its assets, provided that this shall not apply to the transfer of securities in connection with any permissible borrowing or to collateral arrangements in connection with permissible activities.

**Additional Information** 

As a matter of non-fundamental policy regarding certain of the Fund's investment restrictions, please note the following additional information.

For purposes of the above limitations, the Fund considers certificates of deposit and demand and time deposits issued by a U.S. branch of a domestic bank or savings association having capital, surplus and undivided profits in excess of $100,000,000 at the time of investment to be "cash items" and "bank instruments."

Except with respect to borrowing money, if a percentage limitation is adhered to at the time of investment, a later increase or decrease in percentage resulting from any change in value or net assets will not result in a violation of such limitation.

In applying the concentration restriction, the Fund will adhere to the requirements of the 1940 Act which limits investments in a particular industry or group of industries to no more than 25% of the value of the Fund's total assets. Further, in applying the concentration restriction: (a) utility companies will be divided according to their services, for example, gas, gas transmission, electric and telephone will each be considered a separate industry; (b) financial service companies will be classified according to the end users of their services, for example, automobile finance, bank finance and diversified finance will each be considered a separate industry; and (c) asset-backed securities will be classified according to the underlying assets securing such securities. To conform to the current view of the SEC staff that only domestic bank instruments may be excluded from industry concentration limitations, as a matter of non-fundamental policy, the Fund will not exclude foreign bank instruments from industry concentration limitation tests so long as the policy of the SEC remains in effect. In addition, investments in bank instruments, and investments in certain industrial development bonds funded by activities in a single industry will be deemed to constitute investment in an industry, except when held for temporary defensive purposes. Foreign securities will not be excluded from industry concentration limits.

In applying the borrowing limitation, in accordance with Section 18(f)(1) of the 1940 Act and current SEC rules and guidance, the Fund is permitted to borrow money, directly or indirectly, provided that immediately after any such borrowing, the Fund has asset coverage of at least 300% for all of the Fund's borrowings, and provided further that in the event that such asset coverage shall at any time fall below 300% the Fund shall, within three business days, reduce the amount of its borrowings to an extent that the asset coverage of such borrowings shall be at least 300%.

**Non-Fundamental Names Rule Policy** 

The Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in corporate fixed-income investments. The Fund will notify shareholders at least 60 days in advance of any change in its investment policies that would enable the fund to normally invest less than 80% of its net assets (plus any borrowings for investment purposes) in corporate fixed-income investments.

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What Do Shares Cost?

**Determining Market Value of Securities** 

A Share's net asset value (NAV) is determined as of the end of regular trading on the New York Stock Exchange (NYSE) (normally 4:00 p.m. Eastern time) each day the NYSE is open. The Fund calculates the NAV by valuing its assets, subtracting its liabilities and dividing the balance by the number of Shares outstanding. The NAV is calculated to the nearest whole cent per Share.

In calculating its NAV, the Fund generally values investments as follows:

◾ Equity securities listed on a U.S. securities exchange or traded through the U.S. national market system are valued at their last reported sale price or official closing price in their principal exchange or market. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and ask quotations from one or more dealers.

◾ Other equity securities traded primarily in the United States are valued based upon the mean of closing bid and ask quotations from one or more dealers.

◾ Equity securities traded primarily through securities exchanges and regulated market systems outside the United States are valued at their last reported sale price or official closing price in their principal exchange or market. These prices may be adjusted for significant events occurring after the closing of such exchanges or market systems as described below. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and ask quotations from one or more dealers.

◾ Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Adviser. The methods used by pricing services to determine such price evaluations are described below.

◾ Futures contracts listed on exchanges are valued at their reported settlement price. Option contracts listed on exchanges are valued based upon the mean of closing bid and ask quotations reported by the exchange or from one or more futures commission merchants.

◾ OTC derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation from a pricing service is not readily available, such derivative contracts may be fair valued based upon price evaluations from one or more dealers or using a recognized pricing model for the contract.

◾ Shares of other mutual funds or nonexchange-traded investment companies are valued based upon their reported NAVs. The prospectuses for these mutual funds explain the circumstances under which they will use fair value pricing and the effects of using fair value pricing.

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, or if information furnished by a pricing service, in the opinion of the Valuation Committee, is deemed not representative of the fair value of such security, the Fund will use the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV. The Fund will not use a pricing service or dealer who is an affiliated person of the Adviser to value investments.

Noninvestment assets and liabilities are valued in accordance with U.S. Generally Accepted Accounting Principles (GAAP). The NAV calculation includes expenses, dividend income, interest income, other income and realized and unrealized investment gains and losses through the date of the calculation. Changes in holdings of investments and in the number of outstanding Shares are included in the calculation not later than the first business day following such change. Any assets or liabilities denominated in foreign currencies are converted into U.S. dollars using an exchange rate obtained from a third party.

The Fund follows procedures that are common in the mutual fund industry regarding errors made in the calculation of its NAV. This means that, generally, the Fund will not correct errors of less than one cent per Share.

**Fair Valuation and Significant Events Procedures** 

Pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended, the Board has designated the Adviser as the Fund's valuation designee to perform the fair value determination for securities and other assets held by the Fund. 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 price evaluations of the current fair value of certain investments for purposes of calculating the NAV. The Valuation Committee is subject to Board oversight and certain reporting and other requirements intended to provide the Board the information it needs to oversee the Adviser's fair value determinations.

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***Pricing Service Valuations.*** The Valuation Committee, subject to Board oversight, is authorized to use pricing services that provide daily fair value evaluations of the current value of certain investments, primarily fixed-income securities and OTC derivatives contracts. Different pricing services may provide different price evaluations for the same security because of differences in their methods of evaluating market values. 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. A pricing service may find it more difficult to apply these and other factors to relatively illiquid or volatile investments, which may result in less frequent or more significant changes in the price evaluations of these investments. If a pricing service determines that it does not have sufficient information to use its standard methodology, it may evaluate an investment based on the present value of what investors can reasonably expect to receive from the issuer's operations or liquidation.

Special valuation considerations may apply with respect to the Fund's "odd-lot" positions, if any, as the Fund may receive lower prices when it sells such positions than it would receive for sales of institutional round lot positions. Typically, these securities are valued assuming orderly transactions of institutional round lot sizes, but the Fund may hold or, from time to time, transact in such securities in smaller, odd lot sizes.

The Valuation Committee oversees the Fund's pricing services, which includes, among other things, monitoring significant or unusual price fluctuations above predetermined tolerance levels from the prior day, back-testing of pricing services' prices against actual sale transactions, conducting periodic due diligence meetings and reviews and periodically reviewing the inputs, assumptions and methodologies used by these pricing services. If information furnished by a pricing service is not readily available or, in the opinion of the Valuation Committee, is deemed not representative of the fair value of such security, the security will be fair valued by the Valuation Committee in accordance with procedures established by the Adviser as discussed below in "Fair Valuation Procedures."

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 bid and ask prices for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts.

***Fair Valuation Procedures.*** The Adviser has established procedures for determining the fair value of investments for which price evaluations from pricing services or dealers and market quotations are not readily available. The procedures define an investment's "fair value" as the price that the Fund might reasonably expect to receive upon its current sale. The procedures assume that any sale would be made to a willing buyer in the ordinary course of trading. The procedures require consideration of factors that vary based on the type of investment and the information available. Factors that may be considered in determining an investment's fair value include: (1) the last reported price at which the investment was traded; (2) information provided by dealers or investment analysts regarding the investment or the issuer; (3) changes in financial conditions and business prospects disclosed in the issuer's financial statements and other reports; (4) publicly announced transactions (such as tender offers and mergers) involving the issuer; (5) comparisons to other investments or to financial indices that are correlated to the investment; (6) with respect to fixed-income investments, changes in market yields and spreads; (7) with respect to investments that have been suspended from trading, the circumstances leading to the suspension; and (8) other factors that might affect the investment's value.

The Valuation Committee is responsible for the day-to-day implementation of these procedures subject to the oversight of the Board. The Valuation Committee may also authorize the use of a financial valuation model to determine the fair value of a specific type of investment. The Board periodically reviews the fair valuations made by the Valuation Committee. The Board has also approved the Adviser's fair valuation procedures and significant events procedures as part of the Fund's compliance program and will review any changes made to the procedures.

Using fair value to price investments may result in a value that is different from an investment's most recent closing price and from the prices used by other registered funds to calculate their NAVs. The application of the fair value procedures to an investment represents a good faith determination of such investment's fair value. 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 could be materially different.

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***Significant Events.*** The Adviser has adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

◾ With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;

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

◾ Announcements concerning matters such as acquisitions, recapitalizations or 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. The pricing service uses models that correlate changes between the closing and opening price of equity securities traded primarily in non-U.S. markets to changes in prices in U.S.-traded securities and derivative contracts. The pricing service seeks to employ the model that provides the most significant correlation based on a periodic review of the results. The model uses the correlation to adjust the reported closing price of a foreign equity security based on information available up to the close of the NYSE.

The fair valuation of securities following a significant event can serve to reduce arbitrage opportunities for short-term traders to profit at the expense of long-term investors in the Fund. For example, such arbitrage opportunities may exist when the market on which portfolio securities are traded closes before the Fund calculates its NAV, which is typically the case with Asian and European markets. However, there is no assurance that these significant event procedures will prevent dilution of the NAV by short-term traders.

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 fair value of the investment is determined using the methods discussed above in *"Fair Valuation Procedures."* The Board periodically reviews fair valuations made in response to significant events.

**Trading in Foreign Securities** 

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities at the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates may also be determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Occasionally, events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Fund's Board, although the actual calculation may be done by others.

How to Invest in the Fund?

The Fund is used to implement Fixed-Income Strategies for investors in wrap fee accounts or separately managed accounts that are advised or subadvised by FIC, or its affiliates (i.e., Eligible Accounts). The Fund may also be used to implement Fixed-Income Strategies for Eligible Investors in separately managed or other discretionary investment accounts (i.e., also Eligible Accounts) that are advised or subadvised by FIC, its affiliates or, in certain cases, by other third-party discretionary investment managers that have a business relationship with FIC, as well as affiliated funds. Shares of the Fund held for an Eligible Investor may be purchased only at the direction of FIC or another Discretionary Manager of the Eligible Account. To the extent the Fund is permitted as an investment option for an Affiliated Fund, Shares also may be purchased and redeemed at the discretion of an Affiliated Fund's adviser.

At any time, shareholders of the Fund may include Eligible Investors and, to the extent permitted under applicable law, Affiliated Funds. Eligible Investors in the Fund do not include unaffiliated investment companies under the Investment Company Act of 1940 ("1940 Act"), or private funds exempt from registration under the 1940 Act pursuant to Sections 3(c)(1) or 3(c)(7) of the 1940 Act, unless appropriate exemptive relief is obtained under the 1940 Act and the Fund determines to accept the purchase

**19**

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order for such an investment. In addition, unless the Fund determines to accept a purchase order for an investment, an Eligible Investor in the Fund does not include: (i) a non-resident alien within the meaning of I.R.C. § 7701(b)(1)(B) who is a natural person; (ii) a covered expatriate (i.e., a U.S. citizen temporarily residing abroad) within the meaning of I.R.C. § 877A(g)(1)(A); (iii) a foreign institutional investor; or (iv) a fund or investor in the European Union.

At any time that an investor in the Fund ceases to be an Eligible Investor and FIC (or its affiliate) is acting in a discretionary capacity, the Fund will redeem the Fund's Shares held by such investor. At any time that an investor in the Fund (through a relationship with a third-party discretionary manager that has a business relationship with FIC (or its affiliate)) ceases to be an Eligible Investor, the third-party discretionary manager will redeem the Fund's Shares held by such investor. In all circumstances, Federated Securities Corp. reserves the right to authorize the liquidation of shares for ineligible investors.

**Additional Payments To Financial Intermediaries**

The Distributor may pay out of its own resources amounts to certain financial intermediaries, including broker-dealers, banks, registered investment advisers, independent financial planners and retirement plan administrators. In some cases, such payments may be made by, or funded from the resources of, companies affiliated with the Distributor (including the Adviser). While Financial Industry Regulatory Authority, Inc. (FINRA) regulations limit the sales charges that you may bear, there are no limits with regard to the amounts that the Distributor may pay out of its own resources. In connection with these payments, the financial intermediary may elevate the prominence or profile of the Fund and/or other Federated Hermes funds within the financial intermediary's organization by, for example, placement on a list of preferred or recommended funds, and/or granting the Distributor preferential or enhanced opportunities to promote the funds in various ways within the financial intermediary's organization. The same financial intermediaries may receive payments under more than one or all categories. These payments assist in the Distributor's efforts to support the sale of Shares. These payments are negotiated and may be based on such factors as: the number or value of Shares that the financial intermediary sells or may sell; the value of client assets invested; the level and types of services or support furnished by the financial intermediary; or the Fund's and/or other Federated Hermes funds' relationship with the financial intermediary. Not all financial intermediaries receive such payments and the amount of compensation may vary by intermediary. You should ask your financial intermediary for information about any payments it receives from the Distributor or the Federated Hermes funds and any services it provides, as well as the fees and/or commissions it charges.

The categories of additional payments are described below.

**Supplemental Payments** 

The Distributor may make supplemental payments to certain financial intermediaries that are holders or dealers of record for accounts in one or more of the Federated Hermes funds. These payments may be based on such factors as: the number or value of Shares the financial intermediary sells or may sell; the value of client assets invested; or the type and nature of services or support furnished by the financial intermediary.

**Processing Support Payments** 

The Distributor may make payments to certain financial intermediaries that sell Federated Hermes fund shares to help offset their costs associated with client account maintenance support, statement processing and transaction processing. The types of payments that the Distributor may make under this category include: payment of ticket charges on a per-transaction basis; payment of networking fees; and payment for ancillary services such as setting up funds on the financial intermediary's mutual fund trading system.

**Retirement Plan Program Servicing Payments** 

The Distributor may make payments to certain financial intermediaries who sell Federated Hermes fund shares through retirement plan programs. A financial intermediary may perform retirement plan program services itself or may arrange with a third party to perform retirement plan program services. In addition to participant recordkeeping, reporting or transaction processing, retirement plan program services may include: services rendered to a plan in connection with fund/investment selection and monitoring; employee enrollment and education; plan balance rollover or separation; or other similar services.

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**Marketing Support Payments** 

From time to time, the Distributor, at its expense, may provide additional compensation to financial intermediaries that sell or arrange for the sale of Shares. Such compensation, provided by the Distributor, may include financial assistance to financial intermediaries that enable the Distributor to participate in or present at conferences or seminars, sales or training programs for invited registered representatives and other employees, client entertainment, client and investor events and other financial intermediary-sponsored events. The Distributor may also provide additional compensation to financial intermediaries for services rendered in connection with technology and programming set-up, platform development and maintenance or similar services and for the provision of sales-related data to the Adviser and/or its affiliates.

The Distributor also may hold or sponsor, at its expense, sales events, conferences and programs for employees or associated persons of financial intermediaries and may pay the travel and lodging expenses of attendees. The Distributor also may provide, at its expense, meals and entertainment in conjunction with meetings with financial intermediaries. Other compensation may be offered to the extent not prohibited by applicable federal or state law or regulations, or the rules of any self-regulatory agency, such as FINRA. These payments may vary depending on the nature of the event or the relationship.

For the year ended December 31, 2022, the following is a list of FINRA member firms that received additional payments from the Distributor or an affiliate. Additional payments may also be made to certain other financial intermediaries that are not FINRA member firms that sell Federated Hermes fund shares or provide services to the Federated Hermes funds and shareholders. These firms are not included in this list. Any additions, modifications or deletions to the member firms identified in this list that have occurred since December 31, 2022, are not reflected. You should ask your financial intermediary for information about any additional payments it receives from the Distributor.

ADP Broker-Dealer, Inc.

American Enterprise Investment Services Inc.

American Portfolios Advisors, Inc.

Aspyre Wealth Partners

Avidian Wealth Solutions LLC

B. C. Ziegler And Company

Beam Wealth Advisors, Inc.

Benjamin F. Edwards & Company, Inc.

BMO Harris Financial Advisors, Inc.

BofA Securities, Inc.

Bolton Global Capital, Inc.

Broadridge Business Process Outsourcing, LLC

Brown Investment Advisory & Trust Company

Cadaret, Grant & Co., Inc.

Cambridge Financial Group, Inc.

CBIZ Financial Solutions, Inc.

Cetera Advisor Networks LLC

Cetera Advisors LLC

Cetera Investment Services LLC

Charles Schwab & Company, Inc.

Citigroup Global Markets Inc.

Citizens Securities, Inc.

Comerica Securities, Inc.

Commonwealth Financial Network

D A Davidson & Co.

Davenport & Company LLC

Deutsche Bank Securities Inc.

Edward D. Jones & Co., LP

Emerald Advisors, LLC

Empower Financial Services, Inc.

Envestnet PMC

FBL Marketing Services, LLC

Fidelity Investments Institutional Operations Company, Inc. (FIIOC)

Fifth Third Securities, Inc.

FIS Brokerage & Securities Services LLC

Gerber Kawasaki Wealth & Investment Management

Goldman Sachs & Co. LLC

Hancock Whitney Investment Services Inc.

HighTower Securities, LLC

Hilltop Securities, Inc.

HUB International Investment Services Inc.

The Huntington Investment Company

Huntington Securities, Inc.

IFP Securities, LLC

Insigneo Securities, LLC

Institutional Cash Distributors, LLC

Interactive Brokers LLC

J.P. Morgan Securities LLC

Janney Montgomery Scott LLC

Jefferies LLC

KeyBanc Capital Markets Inc.

Kowal Investment Group, LLC

Leafhouse Financial Advisors, LLC

Lincoln Financial Advisors Corporation

Lincoln Financial Distributors, Inc.

Lincoln Investment Planning, LLC

LPL Financial LLC

Lyrical Partners, L.P.

MML Investors

Materetsky Financial Group

Merrill Lynch, Pierce, Fenner and Smith Incorporated

Moneta Group Investment Advisors, LLC

Morgan Stanley Smith Barney LLC

National Financial Services LLC

Nationwide Investment Services Corporation

NewEdge Securities, Inc.

Northwestern Mutual Investment Services, LLC

NYLIFE Distributors LLC

Open Range Financial Group, LLC

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Oppenheimer & Company, Inc.

Paychex Securities Corp

Pensionmark Financial Group, LLC

Pershing LLC

PNC Capital Markets, LLC

PNC Investments LLC

Private Client Services, LLC

Raymond James & Associates, Inc.

Raymond James Financial Services, Inc.

RBC Capital Markets, LLC

Rise Consulting, LLC

Robert W Baird & Co. Incorporated

Rockefeller Capital Management

Royal Alliance Associates, Inc.

Sagepoint Financial, LLC

Sageview Advisory Group, LLC

Sanford C. Bernstein & Company, LLC

SBC Wealth Management

Securian Financial Services, Inc.

Securities America, Inc.

Security Distributors, LLC

Spire Securities, LLC

State Street Global Markets, LLC

Stephens Inc.

Steward Partners Investment Advisory, LLC

Stifel, Nicolaus & Company, Incorporated

Strategic Financial Partners, Ltd

TD Ameritrade, Inc.

Teachers Insurance and Annuity Association of America

The London Company of Virginia LLC

Towerpoint Wealth, LLC

Truist Investment Services, Inc.

Truist Securities, Inc.

U.S. Bancorp Investments, Inc.

UBS Financial Services Inc.

UBS Securities LLC

UMB Financial Services, Inc.

United Planners Financial Services of America, L.P.

Validus Capital LLC

Vanguard Marketing Corporation

Veridian Capital Partners

Vining-Sparks IBG, LLC

Vision Financial Markets, LLC

Voya Financial Advisors, Inc.

Wells Fargo Clearing Services LLC

Wells Fargo Securities, LLC

Woodbury Financial Services, Inc.

WR Wealth Planners LLC

XML Financial Group

Purchases In-Kind

You may contact the Distributor to request a purchase of Shares using securities you own. The Fund reserves the right to determine whether to accept your securities and the minimum market value to accept. The Fund will value your securities in the same manner as it values its assets. An in-kind purchase may be treated as a sale of your securities for federal tax purposes; please consult your tax adviser regarding potential tax liability.

Redemption In-Kind

Although the Fund generally intends to pay Share redemptions in cash, it reserves the right, on its own initiative or in response to a shareholder request, to pay the redemption price in whole or in part by a distribution of the Fund's portfolio securities.

Because the Fund has elected to be governed by Rule 18f-1 under the 1940 Act, the Fund is obligated to pay Share redemptions to any one shareholder in cash only up to the lesser of $250,000 or 1% of the net assets represented by such Share class during any 90-day period.

Any Share redemption payment greater than this amount will also be in cash unless the Fund elects to pay all or a portion of the remainder of the redemption in portfolio securities, valued in the same way as the Fund determines its NAV.

Redemption in-kind is not as liquid as a cash redemption. Shareholders receiving the portfolio securities could have difficulty selling them, may incur related transaction costs and would be subject to risks of fluctuations in the securities' values prior to sale.

Massachusetts Partnership Law

Under certain circumstances, shareholders may be held personally liable as partners under Massachusetts law for obligations of the Trust. To protect its shareholders, the Trust has filed legal documents with Massachusetts that expressly disclaim the liability of its shareholders for acts or obligations of the Trust.

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In the unlikely event a shareholder is held personally liable for the Trust's obligations, the Trust is required by the Declaration of Trust to use its property to protect or compensate the shareholder. On request, the Trust will defend any claim made and pay any judgment against a shareholder for any act or obligation of the Trust. Therefore, financial loss resulting from liability as a shareholder will occur only if the Trust itself cannot meet its obligations to indemnify shareholders and pay judgments against them.

Account and Share Information

**Voting Rights** 

Each Share of the Fund gives the shareholder one vote in Trustee elections and other matters submitted to shareholders for vote.

All Shares of the Trust have equal voting rights, except that in matters affecting only a particular Fund or class, only Shares of that Fund or class are entitled to vote.

Trustees may be removed by the Board or by shareholders at a special meeting. A special meeting of shareholders will be called by the Board upon the written request of shareholders who own at least 10% of the Trust's outstanding Shares of all series entitled to vote.

As of February 7, 2023, the following shareholders owned of record, beneficially, or both 5% or more of outstanding Shares: Zions First National Bank, Salt Lake City, UT, owned approximately 992,948 Shares (6.96%); The Fulton Company, Lancaster, PA, owned approximately 1,120,554 Shares (7.86%); Morgan Stanley Smith Barney, LLC, New York, NY, owned approximately 4,232,282 Shares (29.69%); Raymond James, St. Petersburg, FL, owned approximately 6,127,792 Shares (42.99%).

Shareholders owning 25% or more of outstanding Shares may be in control and be able to affect the outcome of certain matters presented for a vote of shareholders.

Morgan Stanley Smith Barney LLC is organized in the State of Delaware.

Raymond James Financial Services, Inc. is organized in the State of Florida.

Tax Information

**Federal Income Tax** 

The Fund intends to meet requirements of Subchapter M of the Internal Revenue Code (the "Code") applicable to regulated investment companies. If these requirements are not met, it will not receive special tax treatment and will be subject to federal corporate income tax.

The Fund will be treated as a single, separate entity for federal income tax purposes so that income earned and capital gains and losses realized by the Trust's other portfolios will be separate from those realized by the Fund.

The Fund is entitled to a loss carryforward, which may reduce the taxable income or gain that the Fund would realize, and to which the shareholder would be subject, in the future.

**Tax Basis Information** 

The Fund's Transfer Agent and/or your financial intermediary is required to provide you with the cost basis information on the sale of any of your Shares in the Fund, subject to certain exceptions.

**FOREIGN INVESTMENTS** 

If the Fund purchases foreign securities, their investment income may be subject to foreign withholding or other taxes that could reduce the return on these securities. Tax treaties between the United States and foreign countries, however, may reduce or eliminate the amount of foreign taxes to which the Fund would be subject. The effective rate of foreign tax cannot be predicted since the amount of Fund assets to be invested within various countries is uncertain. However, the Fund intends to operate so as to qualify for treaty-reduced tax rates when applicable.

Distributions from a Fund may be based on estimates of book income for the year. Book income generally consists solely of the income generated by the securities in the portfolio, whereas tax-basis income includes, in addition, gains or losses attributable to currency fluctuation. Due to differences in the book and tax treatment of fixed-income securities denominated in foreign currencies, it is difficult to project currency effects on an interim basis. Therefore, to the extent that currency fluctuations cannot be anticipated, a portion of distributions to shareholders could later be designated as a return of capital, rather than income, for income tax purposes, which may be of particular concern to simple trusts.

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If more than 50% of the value of the Fund's assets at the end of the tax year is represented by stock or securities of foreign corporations, the Fund will qualify for certain Code provisions that allow its shareholders to claim a foreign tax credit or deduction on their U.S. income tax returns. The Code may limit a shareholder's ability to claim a foreign tax credit. Shareholders who elect to deduct their portion of the Fund's foreign taxes rather than take the foreign tax credit must itemize deductions on their income tax returns.

Who Manages and Provides Services to the Fund?

**Board of Trustees** 

The Board of Trustees is responsible for managing the Trust's business affairs and for exercising all the Trust's powers except those reserved for the shareholders. The following tables give information about each Trustee and the senior officers of the Fund. Where required, the tables separately list Trustees who are "interested persons" of the Fund (i.e., "Interested" Trustees) and those who are not (i.e., "Independent" Trustees). Unless otherwise noted, the address of each person listed is 1001 Liberty Avenue, Pittsburgh, PA 15222-3779. The address of all Independent Trustees listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2022, the Trust comprised five portfolios, and the Federated Hermes Complex consisted of 33 investment companies (comprising 102 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Trustee oversees all portfolios in the Federated Hermes Complex and serves for an indefinite term.

As of February 7 , 2023, the Fund's Board and Officers as a group owned less than 1% of the Fund's outstanding Shares.

**qualifications of Independent Trustees** 

Individual Trustee qualifications are noted in the "Independent Trustees Background and Compensation" chart. In addition, the following characteristics are among those that were considered for each existing Trustee and will be considered for any Nominee Trustee.

◾ Outstanding skills in disciplines deemed by the Independent Trustees to be particularly relevant to the role of Independent Trustee and to the Federated Hermes funds, including legal, accounting, business management, the financial industry generally and the investment industry particularly.

◾ Desire and availability to serve for a substantial period of time, taking into account the Board's current mandatory retirement age of 75 years.

◾ No conflicts which would interfere with qualifying as independent.

◾ Appropriate interpersonal skills to work effectively with other Independent Trustees.

◾ Understanding and appreciation of the important role occupied by Independent Trustees in the regulatory structure governing regulated investment companies.

◾ Diversity of background.

**interested Trustees Background and Compensation** 

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| | | | |
|:---|:---|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust**<br> **Date Service Began**<br>| &nbsp;&nbsp; **Principal Occupation(s) for Past Five Years,**<br> **Other Directorships Held and Previous Position(s)**<br>| **Aggregate**<br> **Compensation**<br> **From Fund**<br> **(past fiscal year)**<br>| **Total Compensation**<br> **From Fund and**<br> **Federated Hermes Complex**<br> **(past calendar year)**<br>|
| **J. Christopher Donahue\***<br> Birth Date: April 11, 1949<br> President and Trustee<br> Indefinite Term<br> Began serving: October 2005<br>| &nbsp;&nbsp; **Principal Occupations:** Principal Executive Officer and President of certain <br> of the Funds in the Federated Hermes Complex; Director or Trustee of the <br> Funds in the Federated Hermes Complex; President, Chief Executive <br> Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, <br> Federated Investment Management Company; Trustee, Federated <br> Investment Counseling; Chairman and Director, Federated Global <br> Investment Management Corp.; Chairman and Trustee, Federated Equity <br> Management Company of Pennsylvania; Trustee, Federated Shareholder <br> Services Company; Director, Federated Services Company.<br> **Previous Positions:** President, Federated Investment Counseling; President <br> and Chief Executive Officer, Federated Investment Management Company, <br> Federated Global Investment Management Corp. and Passport <br> Research, Ltd.; Chairman, Passport Research, Ltd.<br>| $0 | $0  |

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| | | | |
|:---|:---|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust**<br> **Date Service Began**<br>| &nbsp;&nbsp; **Principal Occupation(s) for Past Five Years,**<br> **Other Directorships Held and Previous Position(s)**<br>| **Aggregate**<br> **Compensation**<br> **From Fund**<br> **(past fiscal year)**<br>| **Total Compensation**<br> **From Fund and**<br> **Federated Hermes Complex**<br> **(past calendar year)**<br>|
| **John B. Fisher\***<br> Birth Date: May 16, 1956<br> Trustee<br> Indefinite Term<br> Began serving: May 2016<br>| &nbsp;&nbsp; **Principal Occupations:** Principal Executive Officer and President of certain <br> of the Funds in the Federated Hermes Complex; Director or Trustee of <br> certain of the Funds in the Federated Hermes Complex; Director and Vice <br> President, Federated Hermes, Inc.; President, Director/Trustee and CEO, <br> Federated Advisory Services Company, Federated Equity Management <br> Company of Pennsylvania, Federated Global Investment Management <br> Corp., Federated Investment Counseling, Federated Investment <br> Management Company and Federated MDTA LLC; Director, Federated <br> 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>| $0 | $0 |

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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 Trustees Background, Qualifications and Compensation** 

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| | | | |
|:---|:---|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust**<br> **Date Service Began**<br>| &nbsp;&nbsp; **Principal Occupation(s) and Other Directorships Held for** <br> **Past Five Years, Previous Position(s) and Qualifications**<br>| **Aggregate** <br> **Compensation**<br> **From Fund**<br> **(past fiscal year)**<br>| **Total Compensation**<br> **From Trust and**<br> **Federated Hermes Complex**<br> **(past calendar year)**<br>|
| **John T. Collins**<br> Birth Date: January 24, 1947<br> Trustee<br> Indefinite Term<br> Began serving: October 2013<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee and Chair of the Board of <br> Directors or Trustees, of the Federated Hermes Complex; formerly, <br> Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired).<br> **Other Directorships Held:** Director, KLX Energy Services Holdings, Inc. <br> (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 Group, <br> Inc. (a private equity firm) and as a Director of KLX Corp. Mr. Collins serves <br> as Chairman Emeriti, Bentley University. Mr. Collins previously served as <br> Director and Audit Committee Member, Bank of America Corp.; Director, <br> FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical <br> Center (Harvard University Affiliate Hospital).<br>| $379.18 | $385000 |
| **G. Thomas Hough**<br> Birth Date: February 28, 1955<br> Trustee<br> Indefinite Term<br> Began serving: August 2015<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee, Chair of the Audit Committee <br> of the Federated Hermes Complex; 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, Inc.; <br> formerly, Director, Member of Governance and Compensation Committees, <br> Publix Super Markets, Inc.<br> **Qualifications:** Mr. Hough has served in accounting, business management <br> and directorship positions throughout his career. Mr. Hough most recently <br> held the position of Americas Vice Chair of Assurance with Ernst & <br> Young LLP (public accounting firm). Mr. Hough serves on the President's <br> Cabinet and Business School Board of Visitors for the University of <br> Alabama. Mr. Hough previously served on the Business School Board of <br> Visitors for Wake Forest University, and he previously served as an <br> Executive Committee member of the United States Golf Association.<br>| $359.48 | $365000  |

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| | | | |
|:---|:---|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust**<br> **Date Service Began**<br>| &nbsp;&nbsp; **Principal Occupation(s) and Other Directorships Held for** <br> **Past Five Years, Previous Position(s) and Qualifications**<br>| **Aggregate** <br> **Compensation**<br> **From Fund**<br> **(past fiscal year)**<br>| **Total Compensation**<br> **From Trust and**<br> **Federated Hermes Complex**<br> **(past calendar year)**<br>|
| **Maureen Lally-Green**<br> Birth Date: July 5, 1949<br> Trustee<br> Indefinite Term<br> Began serving: August 2009<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee of the Federated Hermes <br> Complex; Adjunct Professor Emerita of Law, Duquesne University School of <br> Law; formerly, Dean of the Duquesne University School of Law and <br> Professor of Law and Interim Dean of the Duquesne University School of <br> Law; formerly, Associate General Secretary and Director, Office of Church <br> 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 business <br> roles and directorship positions throughout her career. Judge Lally-Green <br> previously held the position of Dean of the School of Law of Duquesne <br> University (as well as Interim Dean). Judge Lally-Green previously served as <br> Associate General Secretary for the Diocese of Pittsburgh, a member of the <br> Superior Court of Pennsylvania and as a Professor of Law, Duquesne <br> University School of Law. Judge Lally-Green was appointed by the Supreme <br> Court of Pennsylvania to serve on the Supreme Court's Board of Continuing <br> Judicial Education and the Supreme Court's Appellate Court Procedural <br> Rules Committee. Judge Lally-Green also currently holds the positions on <br> not for profit or for profit boards of directors as follows: Director and Chair, <br> UPMC Mercy Hospital; Regent, Saint Vincent Seminary; Member, <br> Pennsylvania State Board of Education (public); Director, Catholic Charities, <br> Pittsburgh; and Director, CNX Resources Corporation (natural gas). Judge <br> Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy <br> Foundation of Western and Central Pennsylvania; Director, Ireland Institute <br> of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, <br> Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, <br> Pennsylvania Bar Institute; Director, Saint Vincent College; Director and <br> Chair, North Catholic High School, Inc.; Director and Vice Chair, Our <br> Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint <br> Francis University.<br>| $325.02 | $330000 |
| **Thomas M. O'Neill**<br> Birth Date: June 14, 1951<br> Trustee<br> Indefinite Term<br> Began serving: August 2006<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee of the Federated Hermes <br> Complex; Sole Proprietor, Navigator Management Company (investment <br> and strategic consulting).<br> **Other Directorships Held:** None.<br> **Qualifications:** Mr. O'Neill has served in several business, mutual fund and <br> financial management roles and directorship positions throughout his <br> career. Mr. O'Neill serves as Director, Medicines for Humanity. Mr. O'Neill <br> previously served as Chief Executive Officer and President, Managing <br> Director and Chief Investment Officer, Fleet Investment Advisors; President <br> and Chief Executive Officer, Aeltus Investment Management, Inc.; General <br> Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment <br> Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending <br> Officer, Fleet Bank; Director and Consultant, EZE Castle Software <br> (investment order management software); Director, Midway Pacific <br> (lumber); and Director, The Golisano Children's Museum of Naples, Florida<br>| $325.02 | $330000 |
| **Madelyn A. Reilly**<br> Birth Date: February 2, 1956<br> Trustee<br> Indefinite Term<br> Began serving: November 2020<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee of the Federated Hermes <br> Complex; formerly, Senior Vice President for Legal Affairs, General Counsel <br> and Secretary of Board of Directors, Duquesne 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 as <br> Senior Vice President for Legal Affairs, General Counsel and Secretary of <br> Board of Directors and Director of Risk Management and Associate General <br> Counsel, Duquesne University. Prior to her work at Duquesne University, <br> Ms. Reilly served as Assistant General Counsel of Compliance and <br> Enterprise Risk as well as Senior Counsel of Environment, Health and <br> Safety, PPG Industries. Ms. Reilly currently serves as a member of the Board <br> of Directors of UPMC Mercy Hospital.<br>| $295.48 | $300000  |

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| | | | |
|:---|:---|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust**<br> **Date Service Began**<br>| &nbsp;&nbsp; **Principal Occupation(s) and Other Directorships Held for** <br> **Past Five Years, Previous Position(s) and Qualifications**<br>| **Aggregate** <br> **Compensation**<br> **From Fund**<br> **(past fiscal year)**<br>| **Total Compensation**<br> **From Trust and**<br> **Federated Hermes Complex**<br> **(past calendar year)**<br>|
| **P. Jerome Richey**<br> Birth Date: February 23, 1949<br> Trustee<br> Indefinite Term<br> Began serving: October 2013<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee of the Federated Hermes <br> Complex; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, <br> University of Pittsburgh and Executive Vice President and Chief Legal <br> Officer, CONSOL Energy Inc. (split into two separate publicly traded <br> companies known as CONSOL Energy Inc. and CNX 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 and <br> Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as <br> Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and <br> Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey <br> previously served as Chief Legal Officer and Executive Vice President, <br> CONSOL Energy Inc. and CNX Gas Company; and Board Member, Ethics <br> Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm).<br>| $325.02 | $330000 |
| **John S. Walsh**<br> Birth Date: November 28, 1957<br> Trustee<br> Indefinite Term<br> Began serving: November 2005<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee of the Federated Hermes <br> Complex; President and Director, Heat Wagon, Inc. (manufacturer of <br> construction temporary heaters); President and Director, Manufacturers <br> Products, Inc. (distributor of portable construction heaters); President, <br> Portable Heater Parts, a division of Manufacturers Products, Inc.<br> **Other Directorships Held:** None.<br> **Qualifications:** Mr. Walsh has served in several business management roles <br> and directorship positions throughout his career. Mr. Walsh previously <br> served as Vice President, Walsh & Kelly, Inc. (paving contractors).<br>| $295.48 | $300000 |

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**OFFICERS\*** 

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| | |
|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust**<br> **Date Service Began**<br>| **Principal Occupation(s) and Previous Position(s)** |
| **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 Federated Hermes Complex; Senior Vice President, <br> Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, <br> Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation.<br> **Previous Positions:** Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors <br> Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, <br> Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services <br> Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., <br> Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd. and Federated MDTA, <br> LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution <br> Services, Inc.<br>|
| **Peter J. Germain**<br> Birth Date: September 3, 1959<br> CHIEF LEGAL OFFICER, <br> SECRETARY and EXECUTIVE<br> VICE PRESIDENT<br> Officer since: October 2005<br>| &nbsp;&nbsp; **Principal Occupations:** Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes <br> Complex. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee <br> and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative <br> Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities <br> Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; <br> and Secretary, Retirement Plan Service Company of 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, Managing Director of Mutual Fund Services, Federated Hermes, <br> Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc.<br>|
| **Stephen Van Meter**<br> Birth Date: June 5, 1975<br> CHIEF COMPLIANCE OFFICER <br> AND SENIOR VICE PRESIDENT<br> Officer since: July 2015<br>| &nbsp;&nbsp; **Principal Occupations:** Senior Vice President and Chief Compliance Officer of the Federated Hermes Complex; Vice President <br> and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. <br> Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66.<br> **Previous Positions:** Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to <br> joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions <br> of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement.<br>|
| **Robert J. Ostrowski**<br> Birth Date: April 26, 1963<br> Chief Investment Officer<br> Officer since: September 2006<br>| &nbsp;&nbsp; **Principal Occupations:** Robert J. Ostrowski joined Federated Hermes, Inc. in 1987 as an Investment Analyst and became a <br> Portfolio Manager in 1990. He was named Chief Investment Officer of Federated Hermes, Inc. taxable fixed-income products in <br> 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund's Adviser in <br> 2009 and served as a Senior Vice President of the Fund's Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered <br> Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University.<br>|
| **Stephen F. Auth**<br> Birth Date: 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: February 2015<br>| &nbsp;&nbsp; **Principal Occupations:** Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Complex; <br> Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated <br> Equity Management Company of Pennsylvania.<br> **Previous Positions:** Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. <br> (investment advisory subsidiary of Federated Hermes); Senior Vice President, Global Portfolio Management Services Division; <br> Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and <br> Portfolio Manager, Prudential Investments.<br>|

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\*

*Officers do not receive any compensation from the Fund.*

*In addition, the Fund has appointed an Anti-Money Laundering Compliance Officer.* 

**28**

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**DIRECTOR/TRUSTEE EMERITUS PROGRAM** 

The Board has created a position of Director/Trustee Emeritus, whereby an incumbent Director/Trustee who has attained the age of 75 and completed a minimum of five years of service as a director/trustee, may, in the sole discretion of the Committee of Independent Directors/Trustees ("Committee"), be recommended to the full Board of Directors/Trustees of the Fund to serve as Director/Trustee Emeritus.

A Director/Trustee Emeritus that has been approved as such receives an annual fee in an amount equal to a percent of the annual base compensation paid to a Director/Trustee. In the case of a Director/Trustee Emeritus who had previously served at least five years but less than 10 years as a Director/Trustee, the percent will be 10%. In the case of a Director/Trustee Emeritus who had previously served at least 10 years as a Director/Trustee, the percent will be 20%. The Director/Trustee Emeritus will be reimbursed for any expenses incurred in connection with their service, including expenses of travel and lodging incurred in attendance at Board meetings. Director/Trustee Emeritus will continue to receive relevant materials concerning the Funds, will be expected to attend at least one regularly scheduled quarterly meeting of the Board of Directors/Trustees each year and will be available to consult with the Committees or its representatives at reasonable times as requested by the Chairman; however, a Director/Trustee Emeritus does not have any voting rights at Board meetings and is not subject to election by shareholders of the Funds.

The Director/Trustee Emeritus will be permitted to serve in such capacity at the pleasure of the Committee, but the annual fee will cease to be paid at the end of the calendar year during which he or she has attained the age of 80 years, thereafter the position will be honorary.

The following table shows the fees paid to each Director/Trustee Emeritus for the Fund's most recently ended fiscal year and the portion of that fee paid by the Fund or Corporation/Trust.<sup>1</sup>

**EMERITUS Trustees and Compensation** 

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| | | |
|:---|:---|:---|
| **Director/Trustee Emeritus** | **Compensation**<br> **From Fund**<br> **(past fiscal year)**<br>| **Total**<br> **Compensation**<br> **Paid to**<br> **Director/Trustee**<br> **Emeritus**<sup>1</sup> <br>|
| **Peter E. Madden** | $25.67 | $60000.00 |
| **Charles F. Mansfield, Jr.** | $25.67 | $60000.00 |

---

*The fees paid to a Director/Trustee are allocated among the funds that were in existence at the time the Director/Trustee elected Emeritus status, based on each fund's net assets at that time.*

**BOARD LEADERSHIP STRUCTURE** 

As required under the terms of certain regulatory settlements, the Chairman of the Board is not an interested person of the Fund and neither the Chairman, nor any firm with which the Chairman is affiliated, has a prior relationship with Federated Hermes or its affiliates or (other than his position as a Trustee) with the Fund.

**Committees of the Board** 

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| | | | |
|:---|:---|:---|:---|
| **Board**<br> **Committee**<br>| &nbsp;&nbsp;&nbsp; **Committee**<br> **Members**<br>| **Committee Functions** | &nbsp;&nbsp;&nbsp; **Meetings Held**<br> **During Last**<br> **Fiscal Year**<br>|
| **Executive** | &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;J. Christopher Donahue<br> John T. Collins<br> &nbsp;&nbsp;&nbsp;&nbsp;G. Thomas Hough<br>| &nbsp;&nbsp;&nbsp; In between meetings of the full Board, the Executive Committee generally may <br> exercise all the powers of the full Board in the management and direction of the <br> business and conduct of the affairs of the Trust in such manner as the Executive <br> Committee shall deem to be in the best interests of the Trust. However, the <br> Executive Committee cannot elect or remove Board members, increase or decrease <br> the number of Trustees, elect or remove any Officer, declare dividends, issue shares <br> or recommend to shareholders any action requiring shareholder approval.<br>| One |
| **Audit** | &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;G. Thomas Hough<br> Maureen Lally-Green<br> Thomas M. O'Neill<br> &nbsp;&nbsp;&nbsp;&nbsp;P. Jerome Richey<br>| &nbsp;&nbsp;&nbsp; The purposes of the Audit Committee are to oversee the accounting and financial <br> reporting process of the Fund, the Fund's internal control over financial reporting <br> and the quality, integrity and independent audit of the Fund's financial statements. <br> The Committee also oversees or assists the Board with the oversight of compliance <br> with legal requirements relating to those matters, approves the engagement and <br> reviews the qualifications, independence and performance of the Fund's <br> independent registered public accounting firm, acts as a liaison between the <br> independent registered public accounting firm and the Board and reviews the Fund's <br> internal audit function.<br>| Seven  |

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| | | | |
|:---|:---|:---|:---|
| **Board**<br> **Committee**<br>| &nbsp;&nbsp;&nbsp; **Committee**<br> **Members**<br>| **Committee Functions** | &nbsp;&nbsp;&nbsp; **Meetings Held**<br> **During Last**<br> **Fiscal Year**<br>|
| **Nominating** | &nbsp;&nbsp;&nbsp; John T. Collins<br> &nbsp;&nbsp;&nbsp;&nbsp;G. Thomas Hough <br> Maureen Lally-Green<br> Thomas M. O'Neill<br> Madelyn A. Reilly<br> &nbsp;&nbsp;&nbsp;&nbsp;P. Jerome Richey<br> John S. Walsh<br>| &nbsp;&nbsp;&nbsp; The Nominating Committee, whose members consist of all Independent Trustees, <br> selects and nominates persons for election to the Fund's Board when vacancies <br> occur. The Committee will consider candidates recommended by shareholders, <br> Independent Trustees, officers or employees of any of the Fund's agents or service <br> providers and counsel to the Fund. Any shareholder who desires to have an <br> individual considered for nomination by the Committee must submit a <br> recommendation in writing to the Secretary of the Fund, at the Fund's address <br> appearing on the back cover of this SAI. The recommendation should include the <br> name and address of both the shareholder and the candidate and detailed <br> information concerning the candidate's qualifications and experience. In identifying <br> and evaluating candidates for consideration, the Committee shall consider such <br> factors as it deems appropriate. Those factors will ordinarily include: integrity, <br> intelligence, collegiality, judgment, diversity, skill, business and other experience, <br> qualification as an "Independent Trustee," the existence of material relationships <br> which may create the appearance of a lack of independence, financial or accounting <br> knowledge and experience and dedication and willingness to devote the time and <br> attention necessary to fulfill Board responsibilities.<br>| One |

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**BOARD'S ROLE IN RISK OVERSIGHT** 

The Board's role in overseeing the Fund's general risks includes receiving performance reports for the Fund and risk management reports from Federated Hermes' Chief Risk Officer at each regular Board meeting. The Chief Risk Officer is responsible for enterprise risk management at Federated Hermes, which includes risk management committees for investment management and for investor services. The Board also receives regular reports from the Fund's Chief Compliance Officer regarding significant compliance risks.

On behalf of the Board, the Audit Committee plays a key role overseeing the Fund's financial reporting and valuation risks. The Audit Committee meets regularly with the Fund's Principal Financial Officer and outside auditors, as well as with Federated Hermes' Chief Audit Executive to discuss financial reporting and audit issues, including risks relating to financial controls.

**Board Ownership Of Shares In The Fund And In The Federated Hermes Family Of Investment Companies As Of December 31, 2022** 

---

| | | |
|:---|:---|:---|
| **Interested Board**<br> **Member Name**<br>| &nbsp;&nbsp; **Dollar Range of**<br> **Shares Owned in**<br> **Federated Hermes Corporate** <br> **Bond Strategy Portfolio**<br>| &nbsp;&nbsp; **Aggregate**<br> **Dollar Range of**<br> **Shares Owned in**<br> **Federated Hermes Family of**<br> **Investment Companies\***<br>|
| J. Christopher Donahue |  | Over $100,000 |
| John B. Fisher |  | Over $100,000 |
| **Independent Board**<br> **Member Name**<br>|  |  |
| John T. Collins |  | Over $100,000 |
| G. Thomas Hough |  | Over $100,000 |
| Maureen Lally-Green |  | Over $100,000 |
| Thomas M. O'Neill |  | Over $100,000 |
| Madelyn A. Reilly |  | Over $100,000 |
| P. Jerome Richey |  | Over $100,000 |
| John S. Walsh |  | Over $100,000 |

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\* For the calendar year ended December 31, 2021, each Trustee listed owned in the aggregate over $100,000 in the Federated Hermes Family of Investment Companies.

In December 2017, Federated Investors, Inc., now Federated Hermes, became a signatory to the Principles for Responsible Investment (PRI). The PRI is an investor initiative in partnership with the United Nations Environment Programme Finance Initiative and the United Nations Global Compact. Commitments made as a signatory to the PRI are not legally binding, but are voluntary and aspirational. They include efforts, where consistent with our fiduciary responsibilities, to incorporate environmental, social and corporate governance (ESG) issues into investment analysis and investment decision making, to be active owners and incorporate ESG issues into our ownership policies and practices, to seek appropriate disclosure on ESG issues

**30**

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by the entities in which we invest, to promote acceptance and implementation of the PRI within the investment industry, to enhance our effectiveness in implementing the PRI, and to report on our activities and progress towards implementing the PRI. Being a signatory to the PRI does not obligate Federated Hermes to take, or not take, any particular action as it relates to investment decisions or other activities.

In July 2018, Federated Investors, Inc., now Federated Hermes, acquired a majority interest in Federated Hermes Limited (FHL) (formerly, Hermes Fund Managers Limited), a pioneer of integrated ESG investing. Federated Hermes now owns 100% of FHL. FHL's experience with ESG issues contributes to Federated Hermes' understanding of material risks and opportunities these issues may present.

EOS at Federated Hermes, which was established as Hermes Equity Ownership Services Limited (EOS) in 2004 as an affiliate of FHL and Hermes Investment Management Limited, is a 50+ member engagement and stewardship team that conducts long-term, objectives-driven dialogue with board and senior executive level representatives of approximately 1,000 unique issuers annually. It seeks to address the most material ESG risks and opportunities through constructive and continuous discussions with the goal of improving long-term results for investors. Engagers' deep understanding across sectors, themes and regional markets, along with language and cultural expertise, allows EOS to provide insights to companies on the merits of addressing ESG risks and the positive benefits of capturing opportunities. Federated Hermes investment management teams have access to the insights gained from understanding a company's approach to these long-term strategic matters as an additional input to improve portfolio risk/return characteristics.

**Portfolio Manager Information** 

The following information about the Fund's Portfolio Managers is provided as of the end of the Fund's most recently completed fiscal year unless otherwise indicated.

**Jerome Conner, Portfolio Manager** 

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| | |
|:---|:---|
| **Types of Accounts Managed**<br> **by Jerome Conner**<br>| &nbsp;&nbsp;&nbsp; **Total Number of Additional Accounts**<br> **Managed/Total Assets\***<br>|
| Registered Investment Companies | 6/$12.1 billion |
| Other Pooled Investment Vehicles | 0/$0 |
| Other Accounts | 4/$84.5 million |

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\*

*None of the Accounts has an advisory fee that is based on the performance of the account.*

*Dollar value range of shares owned in the Fund: None.* 

Jerome Conner is paid a fixed base salary and a variable annual incentive. Base salary is determined within a market competitive, position-specific salary range, based on the portfolio manager's experience and performance. The annual incentive amount is determined based primarily on Investment Product Performance (IPP) and may also include a discretionary component based on a variety of factors deemed relevant, such as financial measures and performance, and may be paid entirely in cash, or in a combination of cash and restricted stock of Federated Hermes, Inc. ("Federated Hermes"). The total combined annual incentive opportunity is intended to be competitive in the market for this portfolio manager role.

IPP is measured on a rolling one, three and five calendar year pre-tax gross total return basis versus the Fund's benchmark (i.e., Bloomberg US Credit Index–BBB). Performance periods are adjusted if a portfolio manager has been managing an account for less than five years; accounts with less than one year of performance history under a portfolio manager may be excluded.

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As noted above, Mr. Conner is also the portfolio manager for other accounts in addition to the Fund. Such other accounts may have different benchmarks and performance measures. The allocation or weighting given to the performance of the Fund or other accounts or activities for which Mr. Conner is responsible when his compensation is calculated may be equal or can vary.

In addition, Mr. Conner serves on one or more Investment Teams that establish guidelines on various performance drivers (e.g., currency, duration, sector, volatility and/or yield curve) for taxable, fixed-income accounts. A portion of the IPP score is based on Federated Hermes' senior management's assessment of team contributions.

For purposes of calculating the annual incentive amount, each account managed by the portfolio manager currently is categorized into one of three IPP groups (which may be adjusted periodically). Within each performance measurement period and IPP group, IPP currently is calculated on the basis of an assigned weighting to each account managed or activity engaged in by the portfolio manager and included in the IPP groups. At the account level, the weighting assigned to the Fund is lesser than or equal to the weighting assigned to certain other accounts or activities, and is greater than or equal to the weighting assigned to certain other accounts or activities, used to determine IPP (but can be adjusted periodically). A portion of the bonus tied to the IPP score may be adjusted based on management's assessment of overall contributions to account performance and any other factors as deemed relevant.

Any individual allocations from the discretionary pool may be determined, by executive management on a discretionary basis using various factors, such as, for example, on a product, strategy or asset class basis, and considering overall contributions and any other factors deemed relevant (and may be adjusted periodically).

In addition, Mr. Conner was awarded a grant of restricted Federated Hermes stock. Awards of restricted stock are discretionary and are made in variable amounts based on the subjective judgment of Federated Hermes' senior management.

**Brian Ruffner, Portfolio Manager** 

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| | |
|:---|:---|
| **Types of Accounts Managed**<br> **by Brian Ruffner**<br>| &nbsp;&nbsp;&nbsp; **Total Number of Additional Accounts**<br> **Managed/Total Assets\***<br>|
| Registered Investment Companies | 4/$2.6 billion |
| Other Pooled Investment Vehicles | 0/$0 |
| Other Accounts | 3/$421.5 million |

---

\*

*None of the Accounts has an advisory fee that is based on the performance of the account.*

*Dollar value range of shares owned in the Fund: None.* 

Brian Ruffner is paid a fixed base salary and a variable annual incentive. Base salary is determined within a market competitive, position-specific salary range, based on the portfolio manager's experience and performance. The annual incentive amount is determined based primarily on Investment Product Performance (IPP) and may also include a discretionary component based on a variety of factors deemed relevant, such as financial measures and performance and may be paid entirely in cash, or in a combination of cash and restricted stock of Federated Hermes, Inc. ("Federated Hermes"). The total combined annual incentive opportunity is intended to be competitive in the market for this portfolio manager role.

IPP is measured on a rolling one, three and five calendar year pre-tax gross total return basis versus the Fund's benchmark (i.e., Bloomberg US Credit Index–BBB). Performance periods are adjusted if a portfolio manager has been managing an account for less than five years; accounts with less than one year of performance history under a portfolio manager may be excluded.

As noted above, Mr. Ruffner is also the portfolio manager for other accounts in addition to the Fund. Such other accounts may have different benchmarks and performance measures. The allocation or weighting given to the performance of the Fund or other accounts for which Mr. Ruffner is responsible when his compensation is calculated may be equal or can vary.

For purposes of calculating the annual incentive amount, each account managed by the portfolio manager currently is categorized into one of three IPP groups (which may be adjusted periodically). Within each performance measurement period and IPP group, IPP currently is calculated on the basis of an assigned weighting to each account managed by the portfolio manager and included in the IPP groups. At the account level, the weighting assigned to the Fund is lesser than or equal to the weighting assigned to certain other accounts used to determine IPP (but can be adjusted periodically). A portion of the bonus tied to the IPP score may be adjusted based on management's assessment of overall contributions to account performance and any other factors as deemed relevant.

Any individual allocations from the discretionary pool may be determined, by executive management on a discretionary basis using various factors, such as, for example, on a product, strategy or asset class basis, and considering overall contributions and any other factors deemed relevant (and may be adjusted periodically).

**32**

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**Other Related Services** 

Affiliates of the Adviser may, from time to time, provide certain electronic equipment and software to institutional customers in order to facilitate the purchase of Fund Shares offered by the Distributor.

**Code Of Ethics Restrictions On Personal Trading** 

As required by Rule 17j-1 of the Investment Company Act of 1940 and Rule 204A-1 under the Investment Advisers Act (as applicable), the Fund, its Adviser and its Distributor have adopted codes of ethics. These codes govern securities trading activities of investment personnel, Fund Trustees and certain other employees. Although they do permit these people to trade in securities, including those that the Fund could buy, as well as Shares of the Fund, they also contain significant safeguards designed to protect the Fund and its shareholders from abuses in this area, such as requirements to obtain prior approval for, and to report, particular transactions.

**Voting Proxies On Fund Portfolio Securities** 

The Board has delegated to the Adviser authority to vote proxies on the securities held in the Fund's portfolio. The Board has also approved the Adviser's policies and procedures for voting the proxies, which are described below.

**Proxy Voting Policies** 

As an investment adviser with a fiduciary duty to the Fund and its shareholders, the Adviser's general policy is to cast proxy votes in favor of management proposals and shareholder proposals that the Adviser anticipates will enhance the long-term value of the securities being voted in a manner that is consistent with the investment objectives of the Fund. Generally, this will mean voting for proposals that the Adviser believes will improve the management of a company, increase the rights or preferences of the voted securities, or increase the chance that a premium offer would be made for the company or for the voted securities. This approach to voting proxy proposals will be referred to hereafter as the "General Policy."

The Adviser generally votes consistently on the same matter when securities of an issuer are held by multiple client portfolios. However, the Adviser may vote differently if a client's investment objectives differ from those of other clients or if a client explicitly instructs the Adviser to vote differently.

The following examples illustrate how the General Policy may apply to the most common management proposals and shareholder proposals. However, whether the Adviser supports or opposes a proposal will always depend on a thorough understanding of the Fund's investment objectives and the specific circumstances described in the proxy statement and other available information.

On matters related to the board of directors, generally, the Adviser will vote to elect nominees to the board in uncontested elections except in certain circumstances, such as where the director: (1) had not attended at least 75% of the board meetings during the previous year; (2) serves as the company's chief financial officer, unless the company is headquartered in the UK where this is market practice; (3) has become overboarded (more than five boards for retired executives and more than two boards for CEOs); (4) is the chair of the nominating or governance committee when the roles of chairman of the board and CEO are combined and there is no lead independent director; (5) served on the compensation committee during a period in which compensation appears excessive relative to performance and peers; or (6) served on a board that did not implement a shareholder proposal that the Adviser supported and received more than 50% shareholder support the previous year. In addition, the Adviser will generally vote in favor of: (7) a full slate of directors, where the directors are elected as a group and not individually, unless more than half of the nominees are not independent; (8) shareholder proposals to declassify the board of directors; (9) shareholder proposals to require a majority voting standard in the election of directors; (10) shareholder proposals to separate the roles of chairman of the board and CEO; (11) a proposal to require a company's audit committee to be comprised entirely of independent directors; and (12) shareholder proposals to eliminate supermajority voting requirements in company bylaws.

On other matters of corporate governance, generally, the Adviser will vote: (1) in favor of proposals to grant shareholders the right to call a special meeting if owners of at least 15% of the outstanding stock agree; (2) against proposals to allow shareholders to act by written consent; (3) on a case-by-case basis for proposals to adopt or amend shareholder rights plans (also known as "poison pills"); (4) in favor of shareholder proposals to eliminate supermajority requirements in company bylaws; and (5) in favor of shareholder proposals calling for "Proxy Access," that is, a bylaw change allowing shareholders owning at least 3% of the outstanding common stock for at least three years to nominate candidates for election to the board of directors.

Generally, the Adviser will vote every shareholder proposal of an environmental or social nature on a case-by-case basis. The quality of these shareholder proposals varies widely across markets. Similarly, company disclosures of their business practices related to environmental and social risks are not always adequate for investors to make risk assessments. Thus, the Adviser places great importance on company-specific analyses to determine how to vote. Above all, the Adviser will vote in a manner that would enhance the long-term value of the investment within the framework of the client's investment objectives.

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The Adviser's general approach to analyzing these proposals calls for considering the literal meaning of the written proposal, the financial materiality of the proposal's objective and the practices followed by industry peers. This analysis utilizes research reports from the Adviser's proxy advisors, company filings, as well as reports published by the company and other outside organizations.

On matters of capital structure, generally, the Adviser will vote proxies for U.S. issuers on a case-by-case basis for proposals to authorize the issuance of new shares if not connected to an M&A transaction and the potential dilution is more than 10%, against proposals to create multiple-class voting structures where one class has superior voting rights to the other classes, in favor of proposals to authorize reverse stock splits unless the amount of authorized shares is not also reduced proportionately. Generally, the Adviser will vote proxies for non-U.S. issuers in favor of proposals to authorize issuance of shares with and without pre-emptive rights unless the size of the authorities would threaten to unreasonably dilute existing shareholders.

Votes on executive compensation come in many forms, including advisory votes on U.S. executive compensation plans ("Say On Pay"), advisory and binding votes on the design or implementation of non-U.S. executive remuneration plans and votes to approve new equity plans or amendments to existing plans. Generally, the Adviser will support compensation arrangements that are aligned with the client's long-term investment objectives. With respect to Say On Pay proposals, the Adviser will generally vote in favor unless the compensation plan has failed to align executive compensation with corporate performance, or the design of the plan is likely to lead to misalignment in the future. The Adviser supports the principle of an annual shareholder vote on executive pay and will generally vote accordingly on proposals which set the frequency of the Say On Pay vote.

In some markets, especially Europe, shareholders are provided a vote on the remuneration policy, which sets out the structural elements of a company's executive remuneration plan on a forward-looking basis. The Adviser will generally support these proposals unless the design of the remuneration policy fails to appropriately link executive compensation with corporate performance, total compensation appears excessive relative to the company's industry peer group, with local market dynamics also taken into account; or there is insufficient disclosure to enable an informed judgment, particularly as it relates to the disclosure of the maximum amounts of compensation that may be awarded.

The Adviser will generally vote in favor of equity plan proposals unless they result in unreasonable dilution to existing shareholders, permit replacement of "underwater" options with new options on more favorable terms for the recipient, or omit the criteria for determining the granting or vesting of awards.

On matters relating to corporate transactions, the Adviser will generally vote in favor of mergers, acquisitions and sales of assets if the Adviser's analysis of the proposed business strategy and the transaction price would have a positive impact on the total return for shareholders.

If a shareholders meeting is contested, that is, shareholders are presented with a set of director candidates nominated by company management and a set of director candidates nominated by a dissident shareholder, the Adviser will study the proposed business strategies of both groups and vote in a way that maximizes expected total return for the Fund.

In addition, the Adviser will not vote any proxy if it determines that the consequences or costs of voting outweigh the potential benefit of voting. For example, if a foreign market requires shareholders voting proxies to retain the voted shares until the meeting date (thereby rendering the shares "illiquid" for some period of time), the Adviser will not vote proxies for such shares. In addition, the Adviser is not obligated to incur any expense to send a representative to a shareholder meeting or to translate proxy materials into English.

To the extent that the Adviser is permitted to loan securities, the Adviser does not have the right to vote on securities while they are on loan. However, the Adviser will take all reasonable steps to recall shares prior to the record date when the meeting raises issues that the Adviser believes materially affect shareholder value, provided that the Adviser considers that the benefits of voting on the securities are greater than the associated costs, including the opportunity cost of the lost revenue that would otherwise be generated by the loan. However, there can be no assurance that the Adviser will have sufficient notice of such matters to be able to terminate the loan in time to vote thereon.

The Adviser will take into account feedback from issuers on the voting recommendations of the Adviser's proxy advisory firm if the feedback is provided at least five days before the voting cut-off date. In certain circumstances, primarily those where the Adviser's voting policy is absolute and without exception, issuer feedback will not be part of the voting decision. For example, it is the Adviser's policy to always support a shareholder proposal to separate the roles of chairman of the board and CEO. Thus, any comments from the issuer opposing this proposal would not be considered.

If proxies are not delivered in a timely or otherwise appropriate basis, the Adviser may not be able to vote a particular proxy.

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For an Adviser that employs a quantitative investment strategy for certain funds or accounts that does not make use of qualitative research ("Non-Qualitative Accounts"), the Adviser may not have the kind of research to make decisions about how to vote proxies for them. Therefore, the Adviser will vote the proxies of these Non-Qualitative Accounts as follows: (a) in accordance with the Standard Voting Instructions (defined below); (b) if the Adviser is casting votes for the same proxy on behalf of a regular qualitative account and a Non-Qualitative Account, the Non-Qualitative Account would vote in the same manner as the regular qualitative account; (c) if neither of the first two conditions apply, as the proxy advisory firm is recommending; and (d) if none of the previous conditions apply, as recommended by the Proxy Voting Committee.

**Proxy Voting Procedures** 

The Adviser has established a Proxy Voting Committee ("Proxy Committee"), to exercise all voting discretion granted to the Adviser by the Board in accordance with the proxy voting policies. To assist it in carrying out the day-to-day operations related to proxy voting, the Proxy Committee has created the Proxy Voting Management Group (PVMG). The day-to-day operations related to proxy voting are carried out by the Proxy Voting Operations Team (PVOT) and overseen by the PVMG. Besides voting the proxies, this work includes engaging with investee companies on corporate governance matters, managing the proxy advisory firm, soliciting voting recommendations from the Adviser's investment professionals, bringing voting recommendations to the Proxy Committee for approval, filing with regulatory agencies any required proxy voting reports, providing proxy voting reports to clients and investment companies as they are requested from time to time and keeping the Proxy Committee informed of any issues related to corporate governance and proxy voting.

The Adviser has compiled a list of specific voting instructions based on the General Policy (the "Standard Voting Instructions"). The Standard Voting Instructions and any modifications to them are approved by the Proxy Committee. The Standard Voting Instructions sometimes call for an investment professional to review the ballot question and provide a voting recommendation to the Proxy Committee (a "case-by-case vote"). The foregoing notwithstanding, the Proxy Committee always has the authority to determine a final voting decision.

The Adviser has hired a proxy advisory firm to perform various proxy voting related administrative services such as ballot reconciliation, vote processing and recordkeeping functions. The Proxy Committee has supplied the proxy advisory firm with the Standard Voting Instructions. The Proxy Committee retains the right to modify the Standard Voting Instructions at any time or to vote contrary to them at any time in order to cast proxy votes in a manner that the Proxy Committee believes is in accordance with the General Policy. The proxy advisory firm may vote any proxy as directed in the Standard Voting Instructions without further direction from the Proxy Committee. However, if the Standard Voting Instructions require case-by-case handling for a proposal, the PVOT will work with the investment professionals and the proxy advisory firm to develop a voting recommendation for the Proxy Committee and to communicate the Proxy Committee's final voting decision to the proxy advisory firm. Further, if the Standard Voting Instructions require the PVOT to analyze a ballot question and make the final voting decision, the PVOT will report such votes to the Proxy Committee on a quarterly basis for review.

**Conflicts of Interest** 

The Adviser has adopted procedures to address situations where a matter on which a proxy is sought may present a potential conflict between the interests of the Fund (and its shareholders) and those of the Adviser or Distributor. This may occur where a significant business relationship exists between the Adviser (or its affiliates) and a company involved with a proxy vote.

A company that is a proponent, opponent, or the subject of a proxy vote, and which to the knowledge of the Proxy Committee has this type of significant business relationship, is referred to below as an "Interested Company."

The Adviser has implemented the following procedures in order to avoid concerns that the conflicting interests of the Adviser or its affiliates have influenced proxy votes. Any employee of the Adviser or its affiliates who is contacted by an Interested Company regarding proxies to be voted by the Adviser must refer the Interested Company to a member of the Proxy Committee, and must inform the Interested Company that the Proxy Committee has exclusive authority to determine how the proxy will be voted. Any Proxy Committee member contacted by an Interested Company must report it to the full Proxy Committee and provide a written summary of the communication. This requirement includes engagement meetings with investee companies and does not include communications with proxy solicitation firms. Under no circumstances will the Proxy Committee or any member of the Proxy Committee make a commitment to an Interested Company regarding the voting of proxies or disclose to an Interested Company how the Proxy Committee has directed such proxies to be voted. If the Standard Voting Instructions already provide specific direction on the proposal in question, the Proxy Committee shall not alter or amend such directions. If the Standard Voting Instructions require the Proxy Committee to provide further direction, the Proxy Committee shall do so in accordance with the proxy voting policies, without regard for the interests of the Adviser with respect to the Interested Company. If the Proxy Committee provides any direction as to the voting of proxies relating to a proposal affecting an Interested Company, it must disclose annually to the Fund's Board information regarding: the significant business relationship; any material communication with the Interested Company; the matter(s) voted on; and how, and why, the Adviser voted as it did. In certain

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circumstances it may be appropriate for the Adviser to vote in the same proportion as all other shareholders, so as to not affect the outcome beyond helping to establish a quorum at the shareholders' meeting. This is referred to as "proportional voting." If the Fund owns shares of another Federated Hermes mutual fund, generally the Adviser will proportionally vote the client's proxies for that fund or seek direction from the Board or the client on how the proposal should be voted. If the Fund owns shares of an unaffiliated mutual fund, the Adviser may proportionally vote the Fund's proxies for that fund depending on the size of the position. If the Fund owns shares of an unaffiliated exchange-traded fund, the Adviser will proportionally vote the Fund's proxies for that fund.

**Downstream Affiliates** 

If the Proxy Committee gives further direction, or seeks to vote contrary to the Standard Voting Instructions, for a proxy relating to a portfolio company in which the Fund owns more than 10% of the portfolio company's outstanding voting securities at the time of the vote ("Downstream Affiliate"), the Proxy Committee must first receive guidance from counsel to the Proxy Committee as to whether any relationship between the Adviser and the portfolio company, other than such ownership of the portfolio company's securities, gives rise to an actual conflict of interest. If counsel determines that an actual conflict exists, the Proxy Committee must address any such conflict with the executive committee of the board of directors or trustees of any investment company client prior to taking any action on the proxy at issue.

**Proxy Advisers' Conflicts of Interest** 

Proxy advisory firms may have significant business relationships with the subjects of their research and voting recommendations. For example, a proxy advisory firm board member also sits on the board of a public company for which the proxy advisory firm will write a research report. This and similar situations give rise to an actual or apparent conflict of interest.

In order to avoid concerns that the conflicting interests of the engaged proxy advisory firm have influenced proxy voting recommendations, the Adviser will take the following steps:

◾ A due diligence team made up of employees of the Adviser and/or its affiliates will meet with the proxy advisory firm on an annual basis and determine through a review of their policies and procedures and through inquiry that the proxy advisory firm has established a system of internal controls that provide reasonable assurance that their voting recommendations are not influenced by the business relationships they have with the subjects of their research.

◾ Whenever the standard voting guidelines call for voting a proposal in accordance with the proxy advisory firm recommendation and the proxy advisory firm has disclosed that they have a conflict of interest with respect to that issuer, the PVOT will take the following steps: (a) the PVOT will obtain a copy of the research report and recommendations published by another proxy advisory firm for that issuer; (b) the Director of Proxy Voting, or his designee, will review both the engaged proxy advisory firm research report and the research report of the other proxy advisory firm and determine what vote will be cast. The PVOT will report all proxies voted in this manner to the Proxy Committee on a quarterly basis. Alternatively, the PVOT may seek direction from the Committee on how the proposal shall be voted.

**Proxy Voting Report** 

A report on Form N-PX of how the Fund voted any 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 at FederatedInvestors.com/product-landing/managed-account-pools.do. Select a product name, then click "Documents" and click on "Proxy Voting Record Report." You may also obtain this information by calling 1-800-341-7400. Form N-PX filings are also available at the SEC's website at sec.gov.

**PORTFOLIO HOLDINGS INFORMATION** 

Information concerning the Fund's portfolio holdings is available at FederatedInvestors.com/product-landing/managed-account-pools.do. Select a product and then click on the "Characteristics" tab. You may also obtain this information by calling 1-800-341-7400. A complete listing of the Fund's portfolio holdings as of the end of each calendar quarter is posted on the website 30 days (or the next business day) after the end of the quarter and remains posted for six months thereafter.

Summary portfolio composition information as of the close of each month is posted on the website 15 days (or the next business day) after month-end and remains posted until replaced by the information for the succeeding month. The summary portfolio composition information may include identification of the Fund's top 10 holdings.

You may also access portfolio information as of the end of the Fund's fiscal quarters at FederatedInvestors.com/product-landing/managed-account-pools.do. Select a product and then click on the "Documents" tab. The Fund's Annual Shareholder Report and Semi-Annual Shareholder Report contain complete listings of the Fund's portfolio holdings as of the end of the Fund's second and fourth fiscal quarters. Fiscal quarter information is made available on the website within 70 days after the end of the fiscal quarter. This information is also available in reports filed with the SEC at the SEC's website at sec.gov.

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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.

The disclosure policy of the Fund and the Adviser prohibits the disclosure of portfolio holdings information to any investor or intermediary before the same information is made available to other investors. Employees of the Adviser or its affiliates who have access to nonpublic information concerning the Fund's portfolio holdings are prohibited from trading securities on the basis of this information. Such persons must report all personal securities trades and obtain pre-clearance for all personal securities trades other than mutual fund shares.

Firms that provide administrative, custody, financial, accounting, legal or other services to the Fund may receive nonpublic information about the Fund's portfolio holdings for purposes relating to their services. The Fund may also provide portfolio holdings information to publications that rate, rank or otherwise categorize investment companies and to commodities exchange clearing corporations in connection with qualifying the Fund's Shares for use as margin collateral. Traders or portfolio managers may provide "interest" lists to facilitate portfolio trading if the list reflects only that subset of the portfolio for which the trader or portfolio manager is seeking market interest. A list of service providers, publications and other third parties who may receive nonpublic portfolio holdings information appears in the Appendix to this SAI.

The furnishing of nonpublic portfolio holdings information to any third party (other than authorized governmental or regulatory personnel) requires the prior approval of the President of the Adviser and of the Chief Compliance Officer of the Fund. The President of the Adviser and the Chief Compliance Officer will approve the furnishing of nonpublic portfolio holdings information to a third party only if they consider the furnishing of such information to be in the best interests of the Fund and its shareholders. In that regard, and to address possible conflicts between the interests of Fund shareholders and those of the Adviser and its affiliates, the following procedures apply. No consideration may be received by the Fund, the Adviser, any affiliate of the Adviser or any of their employees in connection with the disclosure of portfolio holdings information. Before information is furnished, the third party must sign a written agreement that it will safeguard the confidentiality of the information, will use it only for the purposes for which it is furnished and will not use it in connection with the trading of any security. Persons approved to receive nonpublic portfolio holdings information will receive it as often as necessary for the purpose for which it is provided. Such information may be furnished as frequently as daily and often with no time lag between the date of the information and the date it is furnished. The Board receives and reviews annually a list of the persons who receive nonpublic portfolio holdings information and the purposes for which it is furnished.

**Brokerage Transactions And Investment Allocation** 

When selecting brokers and dealers to handle the purchase and sale of portfolio instruments, the Adviser looks for prompt execution of the order at a favorable price. Fixed-income securities are generally traded in an over-the-counter market on a net basis (i.e., without commission) through dealers acting as principal or in transactions directly with the issuer. Dealers derive an undisclosed amount of compensation by offering securities at a higher price than they bid for them. Some fixed-income securities may have only one primary market maker. The Adviser seeks to use dealers it believes to be actively and effectively trading the security being purchased or sold, but may not always obtain the lowest purchase price or highest sale price with respect to a security. The Adviser makes decisions on portfolio transactions and selects brokers and dealers subject to review by the Fund's Board.

Investment decisions for the Fund are made independently from those of other accounts managed by the Adviser and accounts managed by affiliates of the Adviser. When the Fund and one or more of those accounts invests in, or disposes of, the same security, available investments or opportunities for sales will be allocated among the Fund and the account(s) in a manner believed by the Adviser to be equitable. While the coordination and ability to participate in volume transactions may benefit the Fund, it is possible that this procedure could adversely impact the price paid or received and/or the position obtained or disposed of by the Fund. Investment decisions and trading for certain separately managed or wrap-fee accounts, and other accounts, of the Adviser and/or certain investment adviser affiliates of the Adviser are generally made and conducted independently from the Fund. It is possible that such independent trading activity could adversely impact the prices paid or received and/or positions obtained or disposed of by the Fund.

On December 31, 2022, the Fund owned securities of the following regular broker/dealers:

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| | |
|:---|:---|
| **Broker Dealer** | &nbsp;&nbsp;&nbsp; **Amount of**<br> **Securities Owned**<br>|
| Morgan Stanley | &nbsp;&nbsp;&nbsp; $756978<br>|

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**Administrator** 

Federated Administrative Services (FAS), a subsidiary of Federated Hermes, provides administrative personnel and services, including certain legal, compliance and financial administrative services ("Administrative Services"), necessary for the operation of the Fund. FAS provides Administrative Services for a fee based upon the rates set forth below paid on the average daily net assets of the Fund. 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 with FAS. FAS is also entitled to reimbursement for certain out-of-pocket expenses incurred in providing Administrative Services to the Fund.

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| | |
|:---|:---|
| **Administrative Services**<br> **Fee Rate**<br>| &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 |

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**Custodian** 

State Street Bank and Trust Company, Boston, Massachusetts, is custodian for the securities and cash of the Fund. Foreign instruments purchased by the Fund are held by foreign banks participating in a network coordinated by State Street Bank and Trust Company.

**Transfer Agent And Dividend Disbursing Agent** 

SS&C GIDS, Inc., the Fund's registered transfer agent, maintains all necessary shareholder records.

**Independent Registered Public Accounting Firm** 

The independent registered public accounting firm for the Fund, Ernst & Young LLP, conducts its audits in accordance with the standards of the Public Company Accounting Oversight Board (United States), which require it to plan and perform its audits to provide reasonable assurance about whether the Fund's financial statements and financial highlights are free of material misstatement.

**Distributor** 

The Distributor for the Fund is Federated Securities Corp. Under the Distributor's Contract with the Fund, the Distributor offers Shares on a continuous, best-efforts basis.

**Securities Lending Activities** 

The services provided to the Fund by Citibank, N.A. as securities lending agent may include the following: selecting securities previously identified by the Fund as available for loan to be loaned; locating borrowers identified in the securities lending agency agreement; negotiating loan terms; monitoring daily the value of the loaned securities and collateral; requiring additional collateral as necessary; marking to market non-cash collateral; instructing the Fund's custodian with respect to the transfer of loaned securities; indemnifying the Fund in the event of a borrower default; and arranging for return of loaned securities to the Fund at loan termination.

Following is a report of Fund income and fees and compensation paid to Citibank, N.A. related to securities lending activities during the Fund's most recently completed fiscal year.

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| | |
|:---|:---|
| **Gross income from securities lending activities** | $18777 |
| *Fees and/or compensation for securities lending activities and related services* |  |
| Fees paid to securities lending agent from a revenue split | (294) |
| Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included <br> in the revenue split<br>|  |
| Administrative fees not included in revenue split |  |
| Indemnification fee not included in revenue split |  |
| Rebate (paid to borrower) | (15838) |
| Other fees not included in revenue split (specify) |  |
| **Aggregate fees/compensation for securities lending activities** | $(16132) |
| **Net income from securities lending activities** | $2645 |

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[Financial Information](https://www.sec.gov/Archives/edgar/data/1340579/000162363223000317/form787.htm)

The Financial Statements for the Fund for the fiscal year ended December 31, 2022, are incorporated herein by reference to the Annual Report to Shareholders of Federated Hermes Corporate Bond Strategy Portfolio dated December 31, 2022.

Investment Ratings

**Standard & Poor's Rating Services (S&P) LONG-TERM Issue RATINGS** 

Issue credit ratings are based, in varying degrees, on S&P's analysis of the following considerations: the likelihood of payment-capacity and willingness of the obligor to meet its financial commitment on an obligation in accordance with the terms of the obligation; the nature of and provisions of the obligation; and the protection afforded by, and relative position of, the obligation in the event of bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors' rights.

**AAA**—An obligation rated "AAA" has the highest rating assigned by S&P. The obligor's capacity to meet its financial commitment on the obligation is extremely strong.

**AA**—An obligation rated "AA" differs from the highest rated obligations only to a small degree. The obligor's capacity to meet its financial commitment on the obligation is very strong.

**A**—An obligation rated "A" is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor's capacity to meet its financial commitment on the obligation is still strong.

**BBB**—An obligation rated "BBB" exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

Obligations rated "BB," "B," "CCC," "CC" and "C" are regarded as having significant speculative characteristics. "BB" indicates the least degree of speculation and "C" the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions.

**BB**—An obligation rated "BB" is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.

**B**—An obligation rated "B" is more vulnerable to nonpayment than obligations rated "BB," but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation.

**CCC**—An obligation rated "CCC" is currently vulnerable to nonpayment, and is dependent upon favorable business, financial and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation.

**CC**—An obligation rated "CC" is currently highly vulnerable to nonpayment.

**C**—A "C" rating is assigned to obligations that are currently highly vulnerable to nonpayment, obligations that have payment arrearages allowed by the terms of the documents, or obligations of an issuer that is the subject of a bankruptcy petition or similar action which have not experienced a payment default. Among others, the "C" rating may be assigned to subordinated debt, preferred stock or other obligations on which cash payments have been suspended in accordance with the instrument's terms or when preferred stock is the subject of a distressed exchange offer, whereby some or all of the issue is either repurchased for an amount of cash or replaced by other instruments having a total value that is less than par.

**D**—An obligation rated "D" is in payment default. The "D" rating category is used when payments on an obligation are not made on the date due, unless S&P believes that such payments will be made within five business days, irrespective of any grace period. The "D" rating also will be used upon the filing of a bankruptcy petition or the taking of similar action if payments on an obligation are jeopardized. An obligation's rating is lowered to "D" upon completion of a distressed exchange offer, whereby some or all of the issue is either repurchased for an amount of cash or replaced by other instruments having a total value that is less than par.

The ratings from "AA" to "CCC" may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

**S&P Rating Outlook** 

An S&P rating outlook assesses the potential direction of a long-term credit rating over the intermediate term (typically six months to two years). In determining a rating outlook, consideration is given to any changes in the economic and/or fundamental business conditions.

**Positive**—Positive means that a rating may be raised.

**Negative**—Negative means that a rating may be lowered.

**Stable**—Stable means that a rating is not likely to change.

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**Developing**—Developing means a rating may be raised or lowered.

**N.M.**—N.M. means not meaningful.

**S&P Short-Term Issue RATINGS** 

Short-term ratings are generally assigned to those obligations considered short-term in the relevant market. In the United States, for example, that means obligations with an original maturity of no more than 365 days–including commercial paper.

**A-1**—A short-term obligation rated "A-1" is rated in the highest category by S&P. The obligor's capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor's capacity to meet its financial commitment on these obligations is extremely strong.

**A-2**—A short-term obligation rated "A-2" is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor's capacity to meet its financial commitment on the obligation is satisfactory.

**A-3**—A short-term obligation rated "A-3" exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

**B**—A short-term obligation rated "B" is regarded as vulnerable and has significant speculative characteristics. The obligor currently has the capacity to meet its financial commitments; however, it faces major ongoing uncertainties which could lead to the obligor's inadequate capacity to meet its financial commitments.

**C**—A short-term obligation rated "C" is currently vulnerable to nonpayment and is dependent upon favorable business, financial and economic conditions for the obligor to meet its financial commitment on the obligation.

**D**—A short-term obligation rated "D" is in payment default. The "D" rating category is used when payments on an obligation are not made on the date due, unless S&P believes that such payments will be made within any stated grace period. However, any stated grace period longer than five business days will be treated as five business days. The "D" rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized.

**MOODY'S Investor Services, Inc. (MOODY's) LONG-TERM RATINGS** 

Moody's long-term ratings are assigned to issuers or obligations with an original maturity of one year or more and reflect both on the likelihood of a default on contractually promised payments and the expected financial loss suffered in the event of default.

**Aaa**—Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk.

**Aa**—Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.

**A**—Obligations rated A are judged to be upper-medium-grade and are subject to low credit risk.

**Baa**—Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics.

**Ba**—Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.

**B**—Obligations rated B are considered speculative and are subject to high credit risk.

**Caa**—Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk.

**Ca**—Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest.

**C**—Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of principal or interest.

Moody's appends numerical modifiers 1, 2 and 3 to each generic rating classification from Aaa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.

**MOODY'S Short-Term RATINGS** 

Moody's short-term ratings are assigned to obligations with an original maturity of 13 months or less and reflect the likelihood of a default on contractually promised payments.

**P-1**—Issuers (or supporting institutions) rated P-1 have a superior ability to repay short-term debt obligations.

**P-2**—Issuers (or supporting institutions) rated P-2 have a strong ability to repay short-term debt obligations.

**P-3**—Issuers (or supporting institutions) rated P-3 have an acceptable ability to repay short-term obligations.

**NP**—Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating categories.

**40**

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**FITCH, INC. (Fitch) LONG-TERM Debt RATINGs** 

Fitch long-term ratings report Fitch's opinion on an entity's relative vulnerability to default on financial obligations. The "threshold" default risk addressed by the rating is generally that of the financial obligations whose non-payment would best reflect the uncured failure of that entity. As such, Fitch long-term ratings also address relative vulnerability to bankruptcy, administrative receivership or similar concepts, although the agency recognizes that issuers may also make pre-emptive and therefore voluntary use of such mechanisms.

**AAA: Highest Credit Quality**—"AAA" ratings denote the lowest expectation of default risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.

**AA: Very High Credit Quality**—"AA" ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

**A: High Credit Quality**—"A" ratings denote expectations of low default risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings.

**BBB: Good Credit Quality**—"BBB" ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity.

**BB: Speculative**—"BB" ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial flexibility exists which supports the servicing of financial commitments.

**B: Highly Speculative**—"B" ratings indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.

**CCC: Substantial Credit Risk**—Default is a real possibility.

**CC: Very High Levels of Credit Risk**—Default of some kind appears probable.

**C: Exceptionally High Levels of Credit Risk**—Default is imminent or inevitable, or the issuer is in standstill. Conditions that are indicative of a "C" category rating for an issuer include: (a) the issuer has entered into a grace or cure period following non-payment of a material financial obligation; (b) the issuer has entered into a temporary negotiated waiver or standstill agreement following a payment default on a material financial obligation; or (c) Fitch otherwise believes a condition of "RD" or "D" to be imminent or inevitable, including through the formal announcement of a distressed debt exchange.

**RD: Restricted Default**—"RD" ratings indicate an issuer that in Fitch's opinion has experienced an uncured payment default on a bond, loan or other material financial obligation but which has not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, and which has not otherwise ceased operating. This would include: (a) the selective payment default on a specific class or currency of debt; (b) the uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a bank loan, capital markets security or other material financial obligation; (c) the extension of multiple waivers or forbearance periods upon a payment default on one or more material financial obligations, either in series or in parallel; or (d) execution of a distressed debt exchange on one or more material financial obligations.

**D: Default**—"D" ratings indicate an issuer that in Fitch's opinion has entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, or which has otherwise ceased business.

Default ratings are not assigned prospectively to entities or their obligations; within this context, non-payment on an instrument that contains a deferral feature or grace period will generally not be considered a default until after the expiration of the deferral or grace period, unless a default is otherwise driven by bankruptcy or other similar circumstance, or by a distressed debt exchange.

"Imminent" default typically refers to the occasion where a payment default has been intimated by the issuer, and is all but inevitable. This may, for example, be where an issuer has missed a scheduled payment, but (as is typical) has a grace period during which it may cure the payment default. Another alternative would be where an issuer has formally announced a distressed debt exchange, but the date of the exchange still lies several days or weeks in the immediate future.

In all cases, the assignment of a default rating reflects the agency's opinion as to the most appropriate rating category consistent with the rest of its universe of ratings, and may differ from the definition of default under the terms of an issuer's financial obligations or local commercial practice.

**41**

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**FITCH SHORT-TERM DEBT RATINGs** 

A Fitch short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated entity or security stream and relates to the capacity to meet financial obligations in accordance with the documentation governing the relevant obligation. Short-Term Ratings are assigned to obligations whose initial maturity is viewed as "short-term" based on market convention. Typically, this means up to 13 months for corporate, sovereign and structured obligations, and up to 36 months for obligations in U.S. public finance markets.

**F1: Highest Short-Term Credit Quality**—Indicates the strongest intrinsic capacity for timely payment of financial commitments; may have an added "+" to denote any exceptionally strong credit feature.

**F2: Good Short-Term Credit Quality**—Good intrinsic capacity for timely payment of financial commitments.

**F3: Fair Short-Term Credit Quality**—The intrinsic capacity for timely payment of financial commitments is adequate.

**B: Speculative Short-Term Credit Quality**—Minimal capacity for timely payment of financial commitments, plus heightened vulnerability to near-term adverse changes in financial and economic conditions.

**C: High Short-Term Default Risk**—Default is a real possibility.

**RD: Restricted Default**—Indicates an entity that has defaulted on one or more of its financial commitments, although it continues to meet other financial obligations. Applicable to entity ratings only.

**D: Default**—Indicates a broad-based default event for an entity, or the default of a short-term obligation.

**A.M. BEST Company, Inc. (a.m. best) LONG-TERM DEBT and Preferred Stock RATINGS** 

A Best's long-term debt rating is Best's independent opinion of an issuer/entity's ability to meet its ongoing financial obligations to security holders when due.

**aaa: Exceptional**—Assigned to issues where the issuer has an exceptional ability to meet the terms of the obligation.

**aa: Very Strong**—Assigned to issues where the issuer has a very strong ability to meet the terms of the obligation.

**a: Strong**—Assigned to issues where the issuer has a strong ability to meet the terms of the obligation.

**bbb: Adequate**—Assigned to issues where the issuer has an adequate ability to meet the terms of the obligation; however, the issue is more susceptible to changes in economic or other conditions.

**bb: Speculative**—Assigned to issues where the issuer has speculative credit characteristics, generally due to a modest margin or principal and interest payment protection and vulnerability to economic changes.

**b: Very Speculative**—Assigned to issues where the issuer has very speculative credit characteristics, generally due to a modest margin of principal and interest payment protection and extreme vulnerability to economic changes.

**ccc, cc, c: Extremely Speculative**—Assigned to issues where the issuer has extremely speculative credit characteristics, generally due to a minimal margin of principal and interest payment protection and/or limited ability to withstand adverse changes in economic or other conditions.

**d: In Default**—Assigned to issues in default on payment of principal, interest or other terms and conditions, or when a bankruptcy petition or similar action has been filed.

Ratings from "aa" to "ccc" may be enhanced with a "+" (plus) or "-" (minus) to indicate whether credit quality is near the top or bottom of a category.

**A.M. BEST SHORT-TERM DEBT RATINGS** 

A Best's short-term debt rating is Best's opinion of an issuer/entity's ability to meet its financial obligations having original maturities of generally less than one year, such as commercial paper.

**AMB-1+ Strongest**—Assigned to issues where the issuer has the strongest ability to repay short-term debt obligations.

**AMB-1 Outstanding**—Assigned to issues where the issuer has an outstanding ability to repay short-term debt obligations.

**AMB-2 Satisfactory**—Assigned to issues where the issuer has a satisfactory ability to repay short-term debt obligations.

**AMB-3 Adequate**—Assigned to issues where the issuer has an adequate ability to repay short-term debt obligations; however, adverse economic conditions likely will reduce the issuer's capacity to meet its financial commitments.

**AMB-4 Speculative**—Assigned to issues where the issuer has speculative credit characteristics and is vulnerable to adverse economic or other external changes, which could have a marked impact on the company's ability to meet its financial commitments.

**d: In Default**—Assigned to issues in default on payment of principal, interest or other terms and conditions, or when a bankruptcy petition or similar action has been filed.

**A.M. Best Rating Modifiers** 

Both long- and short-term credit ratings can be assigned a modifier.

**u**—Indicates the rating may change in the near term, typically within six months. Generally is event-driven, with positive, negative or developing implications.

**pd**—Indicates ratings assigned to a company that chose not to participate in A.M. Best's interactive rating process (discontinued in 2010).

**42**

------

**i**—Indicates rating assigned is indicative.

**A.M. BEST RATING OUTLOOK** 

A.M. Best Credit Ratings are assigned a Rating Outlook that indicates the potential direction of a credit rating over an intermediate term, generally defined as the next 12 to 36 months.

**Positive**—Indicates possible ratings upgrade due to favorable financial/market trends relative to the current trading level.

**Negative**—Indicates possible ratings downgrade due to unfavorable financial/market trends relative to the current trading level.

**Stable**—Indicates low likelihood of rating change due to stable financial/market trends.

**Not Rated** 

Certain nationally recognized statistical rating organizations (NRSROs) may designate certain issues as NR, meaning that the issue or obligation is not rated.

**43**

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Addresses

**Federated Hermes Corporate Bond Strategy Portfolio**

Federated Hermes Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

**Distributor** 

Federated Securities Corp.

1001 Liberty Avenue

Pittsburgh, PA 15222-3779

**Investment Adviser** 

Federated Investment Management Company

1001 Liberty Avenue

Pittsburgh, PA 15222-3779

**Custodian** 

State Street Bank and Trust Company

1 Iron Street

Boston, MA 02110

**Transfer Agent and Dividend Disbursing Agent** 

SS&C GIDS, Inc.

P.O. Box 219318

Kansas City, MO 64121-9318

**Independent Registered Public Accounting Firm**

Ernst & Young LLP

200 Clarendon Street

Boston, MA 02116-5072

**44**

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Appendix

The following is a list of persons, other than the Adviser and its affiliates, that have been approved to receive nonpublic portfolio holdings information concerning the Federated Hermes Complex; however, certain persons below might not receive such information concerning the Fund:

**CUSTODIAN(S)** 

State Street Bank and Trust Company

**INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

Ernst & Young LLP

**LEGAL COUNSEL** 

Goodwin Procter LLP

K&L Gates LLP

**Financial Printer(S)** 

Donnelley Financial Solutions

**Proxy Voting Administrator** 

Glass Lewis & Co., LLC

**SECURITY PRICING SERVICES** 

Bloomberg L.P.

IHS Markit (Markit North America)

ICE Data Pricing & Reference Data, LLC

JPMorgan PricingDirect

Refinitiv US Holdings Inc.

**RATINGS AGENCIES** 

Fitch, Inc.

Moody's Investors Service, Inc.

Standard & Poor's Financial Services LLC

**Other SERVICE PROVIDERS** 

Other types of service providers that have been approved to receive nonpublic portfolio holdings information include service providers offering, for example, trade order management systems, portfolio analytics, or performance and accounting systems, such as:

ACA Technology Surveillance, Inc.

Bank of America Merrill Lynch

Bloomberg L.P.

Charles River Development

Citibank, N.A.

Eagle Investment Systems LLC

Electra Information Systems

FactSet Research Systems Inc.

FISGlobal

Institutional Shareholder Services

Investortools, Inc.

MSCI ESG Research LLC

Sustainalytics U.S. Inc.

Wolters Kluwer N.V.

**45**

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**Prospectus** 

***February 28, 2023***

![](imga140d05c1.gif)

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

**Ticker** FHYSX<br>

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Federated Hermes High Yield Strategy Portfolio

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A Portfolio of Federated Hermes Managed Pool Series

A mutual fund seeking high current income by investing primarily in a high-yield bond mutual fund and in a portfolio of fixed-income securities. The Fund is used to implement certain fixed-income investment strategies for eligible investors in wrap fee, separately managed and other discretionary investment accounts that are advised or sub-advised by Federated Investment Counseling (FIC), a subsidiary of Federated Hermes, Inc. ("Federated Hermes," formerly, Federated Investors, Inc.), or its affiliates, or certain other discretionary managers. Shares of the Fund held for an eligible investor may be purchased only at the direction of FIC or other discretionary managers to such wrap fee, separately managed or other discretionary investment accounts.

As with all mutual funds, the Securities and Exchange Commission (SEC) has not approved or disapproved these securities or passed upon the adequacy of this Prospectus. Any representation to the contrary is a criminal offense.

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

------

**CONTENTS** 

---

| | |
|:---|:---|
| [Fund Summary Information](#xx_682a5fab-c342-490c-b01b-8575862db7b4_1) | [1](#xx_682a5fab-c342-490c-b01b-8575862db7b4_1) |
| [What are the Fund's Investment Strategies?](#xx_682a5fab-c342-490c-b01b-8575862db7b4_5) | [5](#xx_682a5fab-c342-490c-b01b-8575862db7b4_5) |
| [Information About the Underlying Fund](#xx_682a5fab-c342-490c-b01b-8575862db7b4_6) | [6](#xx_682a5fab-c342-490c-b01b-8575862db7b4_6) |
| [What are the Principal Securities in Which the Fund and the Underlying Fund May Invest?](#xx_682a5fab-c342-490c-b01b-8575862db7b4_7) | [7](#xx_682a5fab-c342-490c-b01b-8575862db7b4_7) |
| [What are the Specific Investment Risks of the Fund and the Underlying Fund?](#xx_682a5fab-c342-490c-b01b-8575862db7b4_12) | [12](#xx_682a5fab-c342-490c-b01b-8575862db7b4_12) |
| [How to Invest in the Fund](#xx_682a5fab-c342-490c-b01b-8575862db7b4_16) | [16](#xx_682a5fab-c342-490c-b01b-8575862db7b4_16) |
| [What Do Shares Cost?](#xx_682a5fab-c342-490c-b01b-8575862db7b4_18) | [18](#xx_682a5fab-c342-490c-b01b-8575862db7b4_18) |
| [Valuation of Portfolio Securities by the Fund and the Underlying Fund](#xx_682a5fab-c342-490c-b01b-8575862db7b4_18) | [18](#xx_682a5fab-c342-490c-b01b-8575862db7b4_18) |
| [How to Purchase Shares](#xx_682a5fab-c342-490c-b01b-8575862db7b4_19) | [19](#xx_682a5fab-c342-490c-b01b-8575862db7b4_19) |
| [How to Redeem Shares](#xx_682a5fab-c342-490c-b01b-8575862db7b4_20) | [20](#xx_682a5fab-c342-490c-b01b-8575862db7b4_20) |
| [Account and Share Information](#xx_682a5fab-c342-490c-b01b-8575862db7b4_21) | [21](#xx_682a5fab-c342-490c-b01b-8575862db7b4_21) |
| [Who Manages the Fund?](#xx_682a5fab-c342-490c-b01b-8575862db7b4_23) | [23](#xx_682a5fab-c342-490c-b01b-8575862db7b4_23) |
| [Financial Information](#xx_682a5fab-c342-490c-b01b-8575862db7b4_23) | [23](#xx_682a5fab-c342-490c-b01b-8575862db7b4_23) |
| [Appendix A: Hypothetical Investment and Expense Information](#xx_bab0eff4-720f-4531-883f-208cf9ffb293_1) | [25](#xx_bab0eff4-720f-4531-883f-208cf9ffb293_1) |

---

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Fund Summary Information

**Federated Hermes High Yield Strategy Portfolio (the "Fund")**

**RISK/RETURN SUMMARY: INVESTMENT OBJECTIVE**

The Fund's investment objective is to seek high current income by investing primarily in a high-yield bond mutual fund and in a portfolio of fixed-income securities.

**RISK/RETURN SUMMARY: FEES AND EXPENSES**

This table describes the fees and expenses that you may pay if you buy, hold and sell Shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and example below.**

**Shareholder Fees (fees paid directly from your investment)** 

---

| |
|:---|
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |
| Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) |
| Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) |
| Redemption Fee (as a percentage of amount redeemed, if applicable) |
| Exchange Fee |

---

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

**Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)** 

---

| | |
|:---|:---|
| Management Fee |  |
| Distribution (12b-1) Fee |  |
| Other Expenses | 0.55% |
| Acquired Fund Fees and Expenses | 0.03% |
| Total Annual Fund Operating Expenses | 0.58% |
| Fee Waivers and/or Expense Reimbursements<sup>1</sup> | (0.55)% |
| Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements  | 0.03% |

---

The Adviser will not charge a fee for its advisory services to the Fund. The Adviser has contractually agreed to reimburse all expenses of the Fund, excluding extraordinary expenses. Acquired Fund Fees and Expenses are not direct obligations of the Fund and are not contractual reimbursements under the investment advisory contract. Shareholders must approve any change to the contractual reimbursements. Investors should carefully consider the separate fees charged in connection with investment in the Fund.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 for the time periods indicated and then redeem or hold all of your Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that operating expenses remain the same. The Example does not reflect sales charges (loads) on reinvested dividends. If these sales charges (loads) were included, your costs would be higher. Although your actual costs and returns may be higher or lower, based on these assumptions your cost would be:

---

| | |
|:---|:---|
| 1 Year | $3 |
| 3 Years | $10 |
| 5 Years | $17 |
| 10 Years | $39 |

---

**Portfolio Turnover** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund Shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 24% of the average value of its portfolio.

**1**

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**RISK/RETURN SUMMARY: INVESTMENTS, RISKS and PERFORMANCE** 

**What are the Fund's Main Investment Strategies?**

The Fund pursues its investment objective by investing primarily in High Yield Bond Core Fund (the "Underlying Fund"), a portfolio of Federated Hermes Core Trust. The investment objective of the Underlying Fund is to seek high current income. The Underlying Fund in turn invests in a diversified portfolio of domestic corporate high-yield bonds (also known as "junk bonds"), but may invest a portion of its portfolio in securities of issuers based outside the United States. High yield bonds are rated below investment grade (i.e., BB or lower) by a nationally recognized statistical rating organization (NRSRO). The Fund may invest in such securities directly. The Fund may also invest in securities of any maturity. There will not be a minimal acceptable rating for a security to be purchased or held by the Fund or the Underlying Fund and each may purchase or hold unrated securities and securities whose issuers are in default.

When selecting investments for the Fund, the Fund can invest in securities directly or in other investment companies, including, for example, the Underlying Fund and other funds advised by Federated Investment Management Company (the "Adviser" or the "Underlying Fund's Adviser") or its affiliates. The Fund's investment in the Underlying Fund is generally expected to be a substantial portion of the Fund's portfolio.

The Underlying Fund's Adviser attempts to select bonds for investment by the Underlying Fund which offer high potential returns for the default risks being assumed. The Underlying Fund's Adviser's securities selection process consists of a credit-intensive, fundamental analysis of the issuing firm. The Underlying Fund's Adviser's analysis focuses on the financial condition of the issuing firm, together with the issuer's business and product strength, competitive position and management expertise. Further, the Underlying Fund's Adviser considers current economic, financial market and industry factors, which may affect the issuer.

The Underlying Fund's Adviser attempts to minimize the Underlying Fund's portfolio credit risk through diversification. The Underlying Fund's Adviser selects securities to maintain broad portfolio diversification both by company and industry. The Underlying Fund's Adviser does not target an average maturity of the Underlying Fund's portfolio.

The Underlying Fund may use derivative contracts and/or hybrid instruments to implement elements of its investment strategy.

The Adviser employs the same management, security selection and derivative strategies when the Fund invests directly in the securities in which the Underlying Fund invests.

The Fund is a non-diversified portfolio of Federated Hermes Managed Pool Series.

The Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in investments rated below investment grade (i.e., BB or lower by an NRSRO). The Fund will notify shareholders at least 60 days in advance of any change in its investment policy that would enable the Fund to invest, under normal circumstances, less than 80% of its net assets (plus any borrowings for investment purposes) in investments rated below investment grade (i.e., BB or lower by an NRSRO).

**What are the Main Risks of Investing in the Fund?**

All mutual funds take investment risks. Therefore, it is possible to lose money by investing in the Fund. Shareholders of the Fund will be exposed to the same risks as the Underlying Fund, which broadly consist of the risks of investing in domestic, corporate, high-yield bonds, as well as derivative contracts. The primary factors that may reduce the Fund's and the Underlying Fund's returns include:

◾ **Risk Associated with Noninvestment-Grade Securities.** Securities rated below investment grade may be subject to greater interest rate, credit and liquidity risks than investment-grade securities. These securities are considered speculative with respect to the issuer's ability to pay interest and repay principal.

◾ **Issuer Credit Risk.** It is possible that interest or principal on securities will not be paid when due. Noninvestment-grade securities generally have a higher default risk than investment-grade securities. Such non-payment or default may reduce the value of the Fund's portfolio holdings, its share price and its performance.

◾ **Counterparty Credit Risk.** Credit risk includes the possibility that a party to a transaction involving the Fund will fail to meet its obligations. This could cause the Fund to lose money or to lose the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategy.

◾ **Risk Related to the Economy.** The value of the Fund's portfolio may decline in tandem with a drop in the overall value of the markets in which the Fund invests and/or other markets. Economic, political and financial conditions, industry or economic trends and developments or public health risks, such as epidemics or pandemics, may, from time to time, and for varying periods of time, cause the Fund to experience volatility, illiquidity, shareholder redemptions, or other potentially adverse effects. Among other investments, lower-grade bonds and loans may be particularly sensitive to changes in the economy.

**2**

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◾ **Liquidity Risk.** The noninvestment-grade securities in which the Fund may invest may not be readily marketable and may be subject to greater fluctuations in price than other securities. Also, market growth at rates greater than dealers' capacity to make markets, as well as regulatory changes or certain other developments, can reduce dealer inventories of securities (such as corporate bonds), which can further constrain liquidity and increase price volatility. Additionally, there is a possibility that the Fund may not be able to sell a security or close out a derivative contract when it wants to. If this happens, the Fund will be required to continue to hold the security or keep the position open, and the Fund could incur losses. High levels of shareholder redemptions in response to market conditions also may increase liquidity risk and may negatively impact Fund performance.

◾ **Call Risk.** There is a possibility that an issuer of fixed-income securities in which the Fund may invest may redeem a security before maturity (a "call") at a price below its current market price. An increase in the likelihood of a call may reduce the security's price.

◾ **Interest Rate Risk.** Prices of fixed-income securities generally fall when interest rates rise. The longer the duration of a fixed-income security, the more susceptible it is to interest-rate risk. Recent and potential future changes in monetary policy made by central banks and/or their governments are likely to affect the level of interest rates.

◾ **Risk of Foreign Investing.** Because the Fund invests in securities issued by foreign companies and national governments, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than would otherwise be the case.

◾ **Risk of Investing in Derivative Contracts and Hybrid Instruments.** Derivative contracts and hybrid instruments involve risks different from, or possibly greater than, risks associated with investing directly in securities and other traditional investments. Specific risk issues related to the use of such contracts and instruments include valuation and tax issues, increased potential for losses and/or costs to the Fund, and a potential reduction in gains to the Fund. Each of these issues is described in greater detail in this Prospectus. Derivative contracts and hybrid instruments may also involve other risks described in this Prospectus, such as interest rate, credit, liquidity and leverage risks.

◾ **Leverage Risk.** Leverage risk is created when an investment, which includes, for example, an investment in a derivative contract, exposes the Fund to a level of risk that exceeds the amount invested. Changes in the value of such an investment magnify the Fund's risk of loss and potential for gain.

◾ **Custodial Services and Related Investment Costs.** Custodial services and other costs relating to investment in international securities markets generally are more expensive than in the United States. Such markets have settlement and clearance procedures that differ from those in the United States. The inability of the Fund to make intended securities purchases due to settlement problems could cause the Fund to miss attractive investment opportunities.

◾ **Non-Diversification Risk.** The Fund is non-diversified. Compared to diversified mutual funds, it may invest a higher percentage of its assets among fewer issuers of portfolio securities. In certain situations, being non-diversified may reduce the Fund's credit risk by enabling it to avoid investing in certain countries, regions or sectors that exhibit above average credit risk. However, being non-diversified may also increase the Fund's risk by magnifying the impact (positively or negatively) that any one issuer has on the Fund's Share price and performance.

◾ **Share Ownership Concentration Risk.** A majority of the Underlying Fund's shares may be held by other mutual funds advised by the Adviser and its affiliates. It also is possible that some or all of these other mutual funds will decide to purchase or redeem shares of the Underlying Fund simultaneously or within a short period of time of one another in order to execute their asset allocation strategies which could have adverse consequences for the Underlying Fund and other shareholders.

◾ **Technology Risk.** The Adviser uses various technologies in managing the Fund, consistent with its investment objective and strategy described in this Prospectus. For example, proprietary and third-party data and systems are utilized to support decision making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance.

◾ **Underlying Fund Risk.** The risk that the Fund's performance is closely related to the risks associated with the securities and other investments held by underlying funds and that the ability of a Fund to achieve its investment objective will depend upon the ability of underlying funds to achieve their respective investment objectives**.** The Fund bears Underlying Fund fees and expenses indirectly**.** 

The Shares offered by this Prospectus are not deposits or obligations of any bank, are not endorsed or 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.

**3**

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**Performance: Bar Chart and Table** 

**Risk/Return Bar Chart**

The bar chart and performance table below reflect historical performance data for the Fund and are intended to help you analyze the Fund's investment risks in light of its historical returns. The bar chart shows the Fund's total returns on a calendar year-by-year basis. The Average Annual Total Return Table shows returns averaged over the stated periods, and includes comparative performance information. *The Fund's performance will fluctuate, and past performance (before and after taxes) is not necessarily an indication of future results.* Updated performance information for the Fund is available by calling 1-800-341-7400.

![](fhysppro35539_12.jpg)

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

*Within the periods shown in the bar chart, the Fund's highest quarterly return was 9.60% (quarter ended June 30, 2020). Its lowest quarterly return was (12.42)% (quarter ended March 31, 2020).*

**Average Annual Total Return Table**

In addition to Return Before Taxes, Return After Taxes is shown for the Fund to illustrate the effect of federal taxes on Fund returns. *Actual after-tax returns depend on each investor's personal tax situation, and are likely to differ from those shown*. After-tax returns are calculated using a standard set of assumptions. The stated returns assume the highest historical **federal** income and capital gains tax rates. These after-tax returns do **not** reflect the effect of any applicable **state** and **local** taxes. After-tax returns are not relevant to investors holding Shares through a 401(k) plan, an Individual Retirement Account or other tax-advantaged investment plans.

(For the Period Ended December 31, 2022)

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| | | | |
|:---|:---|:---|:---|
| **Fund:** | **1 Year** | **5 Years** | **10 Years** |
| Return Before Taxes | (11.63)% | 2.15% | 4.27% |
| Return After Taxes on Distributions | (13.99)% | (0.37)% | 1.40% |
| Return After Taxes on Distributions and Sale of Fund Shares | (6.85)% | 0.62% | 2.02% |
| **Bloomberg US Corporate High Yield 2% Issuer Capped Index**<sup>1</sup><br> (Reflects no deduction for fees, expenses or taxes)<br>| (11.18)% | 2.30% | 4.03% |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*The Bloomberg US Corporate High Yield 2% Issuer Capped Index is an issuer-constrained version of the Bloomberg US Corporate High Yield Index that measures the market of USD-denominated, noninvestment-grade, fixed-rate, taxable corporate bonds. The index follows the same rules as the uncapped index, but limits the exposure of each issuer to 2% of the total market value and redistributes any excess market value index-wide on a pro rata basis.*

**FUND MANAGEMENT** 

The Fund's Investment Adviser is Federated Investment Management Company.

Mark E. Durbiano, CFA, Senior Portfolio Manager, has been the Fund's portfolio manager since its inception in December of 2008.

Steven J. Wagner, Senior Portfolio Manager, has been the Fund's portfolio manager since February of 2018.

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**Purchase and Sale of Fund Shares** 

There is no required minimum initial or subsequent investment amount to invest in Fund Shares.

Shares of the Fund held for an Eligible Investor (see "How to Invest in the Fund") may be purchased only at the direction of Federated Investment Counseling (FIC), a subsidiary of Federated Hermes, Inc. ("Federated Hermes") or another Discretionary Manager of the Eligible Account (see "How to Invest in the Fund"). Shares of the Fund may be purchased any day the NYSE is open. An account may be established and Shares purchased by submitting an Account Application and purchase request in good order to the Fund's Transfer Agent, SS&C GIDS, Inc. Shares of the Fund may be redeemed any day the NYSE is open. Redemption requests should be made in accordance with procedures established by the Transfer Agent.

**Tax Information** 

The Fund's distributions are taxable as ordinary income or capital gains except when your investment is through a 401(k) plan, an Individual Retirement Account or other tax-advantaged investment plan.

**Payments to DISCRETIONARY MANAGERS AND OTHER FINANCIAL INTERMEDIARIES** 

Shares of the Fund held for an Eligible Investor may be purchased only at the direction of FIC or another Discretionary Manager of the Eligible Account. Discretionary Managers receive no fee from the Fund for their services. If you purchase the Fund through a Discretionary Manager, the Fund and/or its related companies do not pay the Discretionary Manager for the sale of Fund Shares and related services. Ask your salesperson or visit your Discretionary Manager's website for more information.

What are the Fund's Investment Strategies?

The Fund's investment objective is to seek high current income by investing primarily in a high-yield bond mutual fund and in a portfolio of fixed-income securities. While there is no assurance that the Fund will achieve its investment objective, it endeavors to do so by following the principal strategies and policies described in this Prospectus. The Fund's Statement of Additional Information (SAI) provides information about the Fund's non-principal strategies.

The Fund pursues its investment objective by investing, under normal market conditions, substantially all of its assets in High Yield Bond Core Fund (the "Underlying Fund"), a portfolio of Federated Hermes Core Trust. The Underlying Fund in turn invests in a diversified portfolio of domestic corporate high-yield bonds (also known as "junk bonds"), but may invest a portion of its portfolio in securities of issuers based outside the United States. High yield bonds are rated below investment grade (i.e., BB or lower by an NRSRO). The Fund may invest in such securities directly. The Fund may also invest in securities of any maturity. There will not be a minimal acceptable rating for a security to be purchased or held by the Fund or the Underlying Fund, and each may purchase or hold unrated securities and securities whose issuers are in default.

When selecting investments for the Fund, Federated Investment Management Company (the "Adviser" or the "Underlying Fund's Adviser") can invest directly in individual securities or may invest in other investment companies, including, for example, the Underlying Fund and other funds advised by the Adviser or its affiliates (together, the "Underlying Funds"). These Underlying Funds may include funds which are not available for general investment by the public. The investment companies in which the fund invests are managed independently of the Fund and may incur additional expenses. The Fund's investment in the Underlying Fund is generally expected to be a substantial portion of the Fund's portfolio. At times the Adviser may focus investments of the Fund and/or the Underlying Fund in a particular sector or sectors of the economy.

The Fund is a non-diversified portfolio of Federated Hermes Managed Pool Series.

The Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in investments rated below investment grade (i.e., BB or lower by an NRSRO). The Fund will notify shareholders at least 60 days in advance of any change in its investment policy that would enable the Fund to invest, under normal circumstances, less than 80% of its net assets (plus any borrowings for investment purposes) in investments rated below investment grade (i.e., BB or lower by an NRSRO).

**Temporary Investments** 

The Fund may temporarily depart from its principal investment strategies by investing its assets in shorter-term debt securities and similar obligations or holding cash. It may do this in response to unusual circumstances, such as: adverse market, economic or other conditions (for example, to help avoid potential losses, or during periods when there is a shortage of appropriate securities) or to maintain liquidity to meet shareholder redemptions or to accommodate cash inflows. It is possible that such investments could affect the Fund's investment returns and/or the ability to achieve the Fund's investment objectives.

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Information About the Underlying Fund

This section of the Prospectus describes the investment objectives and principal investment strategies of the Underlying Fund. A description of the various types of securities in which the Underlying Fund invests, and the Fund may invest, and the risks, immediately follows this section. The Underlying Fund is managed independently of the Fund.

The investment objective of the Underlying Fund is to seek high current income. The Underlying Fund provides exposure to the high-yield lower-rated corporate bond market. The Underlying Fund's Adviser actively manages the Underlying Fund's portfolio seeking to realize the potentially higher returns of high-yield bonds (also known as "junk bonds"), compared to returns of investment-grade securities, by seeking to minimize default risk and other risks through careful security selection and diversification.

The Underlying Fund primarily invests in domestic high-yield bonds but may invest a portion of its portfolio in securities of issuers based outside of the United States (so called "foreign securities") in developed markets. The Underlying Fund is not managed to specific maturity or duration requirements.

The Underlying Fund's Adviser selects securities that it believes have attractive risk-return characteristics. The securities in which the Underlying Fund invests have high-yields primarily because of the market's greater uncertainty about the issuer's ability to make all required interest and principal payments, and therefore about the returns that will in fact be realized by the Underlying Fund.

The Underlying Fund's Adviser attempts to select bonds for investment by the Underlying Fund which offer high potential returns for the default risks being assumed. The Underlying Fund's Adviser's securities selection process consists of a credit-intensive, fundamental analysis of the issuing firm. The Underlying Fund's Adviser's analysis focuses on the financial condition of the issuing firm, together with the issuer's business and product strength, competitive position and management expertise. Further, the Underlying Fund's Adviser considers current economic, financial market and industry factors, which may affect the issuer.

The Underlying Fund's Adviser attempts to minimize the Underlying Fund's portfolio credit risk through diversification. The Underlying Fund's Adviser selects securities to maintain broad portfolio diversification, both by company and industry. There is no minimal acceptable rating for a security to be purchased or held by the Underlying Fund and the Underlying Fund may purchase or hold unrated securities and securities whose issuers are in default. The Underlying Fund's Adviser does not target an average maturity for the Underlying Fund's portfolio.

The Underlying Fund may use derivative contracts and/or hybrid instruments to implement elements of its investment strategy. For example, the Underlying Fund may use derivative contracts or hybrid instruments to increase or decrease the portfolio's exposure to the investment(s) underlying the derivative or hybrid instrument in an attempt to benefit from changes in the value of the underlying investments. Additionally, by way of example, the Underlying Fund may use derivative contracts in an attempt to:

◾ increase or decrease the effective duration of the Underlying Fund portfolio;

◾ obtain premiums from the sale of derivative contracts;

◾ realize gains from trading a derivative contract; or

◾ hedge against potential losses.

There can be no assurance that the Underlying Fund's use of derivative contracts or hybrid instruments will work as intended. Derivative investments made by the Underlying Fund are included within the Underlying Fund's 80% policy and are calculated at market value.

The Underlying Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in investments rated below investment grade (i.e., BB or lower by a nationally recognized statistical rating organization (NRSRO)). The Underlying Fund will notify shareholders 60 days in advance of any change in its investment policy that would enable the Underlying Fund to invest, under normal circumstances, less than 80% of its net assets (plus any borrowings for investment purposes) in investments rated below investment grade (i.e., BB or lower by an NRSRO).

The Fund's Adviser employs the same management, security selection and derivative strategies when the Fund invests directly in the securities in which the Underlying Fund invests.

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What are the Principal Securities in Which the Fund and the Underlying Fund May Invest?

The following provides general information on the Fund's and the Underlying Fund's principal investments. The Fund's Statement of Additional Information (SAI) provides information about the Fund's and the Underlying Fund's non-principal investments and may provide additional information about the Fund's and Underlying Fund's principal investments.

**Fixed-income Securities** 

Fixed-income securities pay interest, dividends or distributions at a specified rate. The rate may be a fixed percentage of the principal or may be adjusted periodically. In addition, the issuer of a fixed-income security must repay the principal amount of the security, normally within a specified time. Fixed-income securities provide more regular income than equity securities. However, the returns on fixed-income securities are limited and normally do not increase with the issuer's earnings. This limits the potential appreciation of fixed-income securities as compared to equity securities.

A security's yield measures the annual income earned on a security as a percentage of its price. A security's yield will increase or decrease depending upon whether it costs less (a "discount") or more (a "premium") than the principal amount. If the issuer may redeem the security before its scheduled maturity, the price and yield on a discount or premium security may change based upon the probability of an early redemption. Securities with higher risks generally have higher yields.

The following describes the fixed-income securities in which the Fund and the Underlying Fund principally invest:

**Corporate Debt Securities (A Type of Fixed-Income Security)** 

Corporate debt securities are fixed-income securities issued by businesses. Notes, bonds, debentures and commercial paper are the most prevalent types of corporate debt securities. The Fund and the Underlying Fund may also purchase interests in bank loans to companies. The credit risks of corporate-debt securities vary widely among issuers.

In addition, the credit risk of an issuer's debt security may vary based on its priority for repayment. For example, higher ranking ("senior") debt securities have a higher priority than lower ranking ("subordinated") securities. This means that the issuer might not make payments on subordinated securities while continuing to make payments on senior securities. In addition, in the event of bankruptcy, holders of senior securities may receive amounts otherwise payable to the holders of subordinated securities. Some subordinated securities, such as trust preferred and capital securities notes, also permit the issuer to defer payments under certain circumstances. For example, insurance companies issue securities known as surplus notes that permit the insurance company to defer any payment that would reduce its capital below regulatory requirements.

**Demand Instruments (A Type of Corporate Debt Security)** 

Demand instruments are corporate debt securities that require the issuer or a third party, such as a dealer or bank (the "Demand Provider"), to repurchase the security for its face value upon demand. Some demand instruments are "conditional," so that the occurrence of certain conditions relieves the Demand Provider of its obligation to repurchase the security. Other demand instruments are "unconditional," so that there are no conditions under which the Demand Provider's obligation to repurchase the security can terminate. The Fund and the Underlying Fund treat demand instruments as short-term securities, even though their stated maturity may extend beyond one year.

**Zero-Coupon Securities (A Type of Fixed-Income Security)** 

Zero-coupon securities do not pay interest or principal until final maturity unlike debt securities that provide periodic payments of interest (referred to as a coupon payment). Investors buy zero-coupon securities at a price below the amount payable at maturity. The difference between the purchase price and the amount paid at maturity represents interest on the zero-coupon security. Investors must wait until maturity to receive interest and principal, which increases the interest rate and credit risks of a zero-coupon security.

There are many forms of zero-coupon securities. Some are issued at a discount and are referred to as zero-coupon or capital appreciation bonds. Others are created from interest-bearing bonds by separating the right to receive the bond's coupon payments from the right to receive the bond's principal due at maturity, a process known as coupon stripping. In addition, some securities give the issuer the option to deliver additional securities in place of cash interest payments, thereby increasing the amount payable at maturity. These are referred to as pay-in-kind, PIK securities, or toggle securities.

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**Bank Instruments (A Type of Fixed-Income Security)** 

Bank instruments are unsecured, interest-bearing deposits with banks. Bank instruments include, but are not limited to, bank accounts, time deposits, certificates of deposit and banker's acceptances. Yankee instruments are denominated in U.S. dollars and issued by U.S. branches of foreign banks. Eurodollar instruments are denominated in U.S. dollars and issued by non-U.S. branches of U.S. or foreign banks.

**Convertible Securities (A Type of Fixed-Income Security)** 

Convertible securities are fixed-income securities or preferred stocks that the Fund and the Underlying Fund or, in some instances, its issuer, have the option to exchange for equity securities at a specified conversion price, or which are automatically exchanged for equity securities after a specified conversion period. The option allows the Fund and the Underlying Fund to realize additional returns if the market price of the equity securities exceeds the conversion price. For example, the Fund and the Underlying Fund may hold fixed-income securities that are convertible into shares of common stock at a conversion price of $10 per share. If the market value of the shares of common stock reached $12, the Fund and the Underlying Fund could realize an additional $2 per share by converting their fixed-income securities.

Convertible securities have lower yields than comparable fixed-income securities. In addition, at the time a convertible security is issued, the conversion price exceeds the market value of the underlying equity securities. Thus, convertible securities may provide lower returns than non-convertible, fixed-income securities or equity securities, depending upon changes in the price of the underlying equity securities. However, convertible securities permit the Fund and the Underlying Fund to realize some of the potential appreciation of the underlying equity securities with less risk of losing its initial investment.

The Fund treats convertible securities as fixed-income securities for purposes of its investment policies and limitations, because of their unique characteristics.

**Lower-Rated, Fixed-Income Securities** 

Lower-rated, fixed-income securities are securities rated below investment grade (i.e., BB or lower) by a nationally recognized statistical rating organization (NRSRO). There is no minimal acceptable rating for a security to be purchased or held by the Fund or the Underlying Fund and the Fund or the Underlying Fund may purchase or hold unrated securities and securities whose issuers are in default.

**Preferred Stocks** 

Preferred stocks have the right to receive specified dividends or distributions before the issuer makes payments on its common stock. Some preferred stocks also participate in dividends and distributions paid on common stock. Preferred stocks may also permit the issuer to redeem the stock. The Fund and the Underlying Fund will treat such redeemable preferred stock as a fixed-income security.

**Foreign Securities** 

Foreign securities are securities of issuers based outside the United States. To the extent the Fund and the Underlying Fund invest in securities included in its applicable broad-based securities market index, the Fund and the Underlying Fund may consider an issuer to be based outside the United States if the applicable index classifies the issuer as based outside the United States. Accordingly, the Fund and the Underlying Fund may consider an issuer to be based outside the United States if the issuer satisfies at least one, but not necessarily all, of the following:

◾ it is organized under the laws of, or has its principal office located in, another country;

◾ the principal trading market for its securities is in another country;

◾ it (directly or through its consolidated subsidiaries) derived in its most current fiscal year at least 50% of its total assets, capitalization, gross revenue or profit from goods produced, services performed or sales made in another country; or

◾ it is classified by an applicable index as based outside the United States.

Foreign securities are primarily denominated in foreign currencies. However, the Fund generally invests in foreign securities denominated in U.S. dollars. Along with the risks normally associated with domestic securities of the same type, foreign securities are subject to currency risks and risks of foreign investing. Trading in certain foreign markets is also subject to liquidity risks.

**Foreign Exchange Contracts** 

In order to convert U.S. dollars into the currency needed to buy a foreign security, or to convert foreign currency received from the sale of a foreign security into U.S. dollars, the Fund or the Underlying Fund may enter into spot currency trades. In a spot trade, the Fund or the Underlying Fund agree to exchange one currency for another at the current exchange rate. The Fund or the Underlying Fund may also enter into derivative contracts in which a foreign currency is an

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underlying asset. The exchange rate for currency derivative contracts may be higher or lower than the spot exchange rate. Use of these derivative contracts may increase or decrease the Fund and the Underlying Fund's exposure to currency risks. The Fund or Underlying Fund may use both spot trades and currency derivatives to increase or decrease its exposure to foreign interest rate and/or currency markets.

**Loan Instruments (A Type of Fixed-Income Security)** 

The Fund may invest in loan (and loan-related) instruments, which are interests in amounts owed by a corporate, governmental or other borrower to lenders or groups of lenders known as lending syndicates ("loans" and "loan participations"). Such instruments may include loans made in connection with trade financing transactions.

Investments in certain loans have additional risks that result from the use of agents and other interposed financial institutions. Such loans are structured and administered by a financial institution (e.g., a commercial bank) that acts as the agent of the lending syndicate. The agent bank, which may or may not also be a lender, typically administers and enforces the loan on behalf of the lenders in the lending syndicate. In addition, an institution, typically but not always the agent bank, holds the collateral, if any, on behalf of the lenders. A financial institution's employment as an agent bank might be terminated for a number of reasons, for example, in the event that it fails to observe a requisite standard of care or becomes insolvent. A successor agent bank would generally be appointed to replace the terminated agent bank, and assets held by the agent bank under the loan agreement likely would remain available to holders of such indebtedness. However, if assets held by the agent bank for the benefit of the Fund were determined to be subject to the claims of the agent bank's general creditors, the Fund might incur certain costs and delays in realizing payment on a loan or loan participation and could suffer a loss of principal and/or interest. In situations involving other interposed financial institutions (e.g., an insurance company or government agency) similar risks may arise.

Loan instruments may be secured or unsecured. If secured, then the lenders have been granted rights to specific property (such as receivables, tangible goods, real property or commodities), which is commonly referred to as collateral. The purpose of securing a loan is to allow the lenders to exercise their rights over the collateral if the loan is not repaid as required by the terms of lending agreement. Unsecured loans expose the lenders to increased credit risk.

The loan instruments in which the Fund may invest may involve borrowers, agent banks, co-lenders and collateral located both in the United States and outside of the United States in developed markets.

The Fund treats loan instruments as a type of fixed-income security. Investments in loan instruments may expose the Fund to interest rate risk, risk of investing in foreign securities, credit risk, liquidity risk, risk of noninvestment-grade securities and leverage risk. (For purposes of the descriptions in this Confidential Private Offering Memorandum of these various risks, references to "issuer" include borrowers in loan instruments.) Many loan instruments incorporate risk mitigation and insurance products into their structures, in order to manage these risks. There is no guarantee that these risk management techniques will work as intended.

**DERIVATIVE CONTRACTS** 

Derivative contracts are financial instruments that derive their value from underlying securities, commodities, currencies, indices, or other assets or instruments, including other derivative contracts (each a "Reference Instrument" and collectively, "Reference Instruments"). The most common types of derivative contracts are swaps, futures and options, and major asset classes include interest rates, equities, commodities and foreign exchange. Each party to a derivative contract may sometimes be referred to as a "counterparty." Some derivative contracts require payments relating to an actual, future trade involving the Reference Instrument. These types of derivatives are frequently referred to as "physically settled" derivatives. Other derivative contracts require payments relating to the income or returns from, or changes in the market value of, a Reference Instrument. These types of derivatives are known as "cash-settled" derivatives since they require cash payments in lieu of delivery of the Reference Instrument.

Many derivative contracts are traded on exchanges. In these circumstances, the relevant exchange sets all the terms of the contract except for the price. Parties to an exchange-traded derivative contract make payments through the exchange. Most exchanges require traders to maintain margin accounts through their brokers to cover their potential obligations to the exchange. Parties to the contract make (or collect) daily payments to the margin accounts to reflect losses (or gains) in the value of their contracts. This protects traders against a potential default by their counterparty. Trading contracts on an exchange also allows traders to hedge or mitigate certain risks or carry out more complex trading strategies by entering into offsetting contracts.

The Fund may also trade derivative contracts over-the-counter (OTC), meaning off-exchange, in transactions negotiated directly between the Fund and an eligible counterparty, which may be a financial institution. OTC contracts do not necessarily have standard terms, so they may be less liquid and more difficult to close out than exchange-traded derivative contracts. In addition, OTC contracts with more specialized terms may be more difficult to value than exchange-traded contracts, especially in times of financial stress.

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The market for swaps and other OTC derivatives was largely unregulated prior to the enactment of federal legislation known as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"). Regulations enacted by the Commodity Futures Trading Commission (the "CFTC") under the Dodd-Frank Act require the Fund to clear certain types of swap contracts (including certain interest rate and credit default swaps) through a central clearinghouse known as a derivatives clearing organization (DCO).

To clear a swap through a DCO, the Fund will submit the contract to, and post margin with, a futures commission merchant (FCM) that is a clearinghouse member. The Fund may enter into the swap with a counterparty other than the FCM and arrange for the contract to be transferred to the FCM for clearing or enter into the contract with the FCM itself. If the Fund must centrally clear a transaction, the CFTC's regulations also generally require that the swap be executed on a registered exchange (either a designated contract market (DCM) or swap execution facility (SEF)). Central clearing is presently required only for certain swaps; the CFTC is expected to impose a mandatory central clearing requirement for additional derivative instruments over time.

DCOs, DCMs, SEFs and FCMs are all subject to regulatory oversight by the CFTC. In addition, certain derivative market participants that act as market makers and engage in a significant amount of "dealing" activity are also required to register as swap dealers with the CFTC. Among other things, swap dealers are subject to minimum capital requirements and business conduct standards and must also post and collect initial and variation margin on uncleared swaps with certain of their counterparties. Because of this, if the Fund enters into uncleared swaps with any swap dealers, it may be subject to initial and variation margin requirements that could impact the Fund's ability to enter into swaps in the OTC market, including making transacting in uncleared swaps significantly more expensive.

At this point in time, most of the Dodd-Frank Act has been fully implemented, though a small number of remaining rulemakings are unfinished or are subject to phase-in periods. Any future regulatory or legislative activity would not necessarily have a direct, immediate effect upon the Fund, though it is within the realm of possibility that, upon implementation of these measures or any future measures, they could potentially limit or completely restrict the ability of the Fund to use these instruments as a part of its investment strategy, increase the costs of using these instruments or make them less effective.

Depending on how the Fund uses derivative contracts and the relationships between the market value of a derivative contract and the Reference Instrument, derivative contracts may increase or decrease the Fund's exposure to the risks of the Reference Instrument and may also expose the Fund to liquidity and leverage risks. OTC contracts also expose the Fund to credit risks in the event that a counterparty defaults on the contract, although this risk may be mitigated by submitting the contract for clearing through a DCO, or certain other factors, such as collecting margin from the counterparty.

As discussed above, a counterparty's exposure under a derivative contract may in some cases be required to be secured with initial and/or variation margin (a form of "collateral").

The Fund may invest in a derivative contract if it is permitted to own, invest in, or otherwise have economic exposure to the Reference Instrument. The Fund is not required to own a Reference Instrument in order to buy or sell a derivative contract relating to that Reference Instrument. The Fund may trade in the following specific types and/or combinations of derivative contracts:

**Futures Contracts (A Type of Derivative)** 

Futures contracts provide for the future sale by one party and purchase by another party of a specified amount of a Reference Instrument at a specified price, date and time. Entering into a contract to buy a Reference Instrument is commonly referred to as buying a contract or holding a long position in the asset. Entering into a contract to sell a Reference Instrument is commonly referred to as selling a contract or holding a short position in the Reference Instrument. Futures contracts are considered to be commodity contracts. The Adviser has claimed an exclusion from the definition of the term "commodity pool operator" under the Commodity Exchange Act with respect to the Fund and the Underlying Fund and, therefore, is not subject to registration or regulation as a commodity pool operator under the Act with respect to the Fund and Underlying Fund. Futures contracts traded OTC are frequently referred to as forward contracts. The Fund and the Underlying Fund can buy or sell financial futures (such as interest rate futures, index futures and security futures) as well as currency futures and currency forward contracts.

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**Option Contracts (A Type of Derivative)** 

Option contracts (also called "options") are rights to buy or sell a Reference Instrument for a specified price (the "exercise price") during, or at the end of, a specified period. The seller (or "writer") of the option receives a payment, or premium, from the buyer, which the writer keeps regardless of whether the buyer uses (or exercises) the option. A call option gives the holder (buyer) the right to buy the Reference Instrument from the seller (writer) of the option. A put option gives the holder the right to sell the Reference Instrument to the writer of the option. Options may be bought or sold on a wide variety of Reference Instruments. Options that are written on futures contracts will be subject to margin requirements similar to those applied to futures contracts.

**Swap Contracts (A Type of Derivative)** 

A swap contract (also known as a "swap") is a type of derivative contract in which two parties agree to pay each other (swap) the returns derived from Reference Instruments. Swaps do not always involve the delivery of the Reference Instruments by either party, and the parties might not own the Reference Instruments underlying the swap. The payments are usually made on a net basis so that, on any given day, the Fund and the Underlying Fund would receive (or pay) only the amount by which its payment under the contract is less than (or exceeds) the amount of the other party's payment. Swap agreements are sophisticated instruments that can take many different forms and are known by a variety of names.

Common types of swaps in which the Fund and the Underlying Fund may invest include interest rate swaps, caps and floors, total return swaps, credit default swaps and currency swaps.

**Investing in Securities of Other Investment Companies** 

The Fund may invest its assets in securities of other investment companies, including the securities of affiliated money market funds, as an efficient means of implementing its investment strategies, managing its uninvested cash and/or other investment reasons consistent with the Fund's investment objective and investment strategies. These other investment companies are managed independently of the Fund and incur additional fees and/or expenses which would, therefore, be borne indirectly by the Fund in connection with any such investment. These investments also can create conflicts of interests for the Adviser to the Fund and the investment adviser to the acquired fund. For example, a conflict of interest can arise due to the possibility that the Adviser to the Fund could make a decision to redeem the Fund's investment in the acquired fund. In the case of an investment in an affiliated fund, a conflict of interest can arise if, because of the Fund's investment in the acquired fund, the acquired fund is able to garner more assets, thereby growing the acquired fund and increasing the management fees received by the investment adviser to the acquired fund, which would either be the Adviser or an affiliate of the Adviser. However, the Adviser believes that the benefits and efficiencies of making investments in other investment companies should outweigh the potential additional fees and/or expenses and resulting conflicts of interest. The Fund may invest in money market securities directly. In light of the Fund's investments in other investment companies, other registered investment companies may be limited in their ability to invest in the Fund.

**OTHER INVESTMENTS, TRANSACTIONS, TECHNIQUES**

**Hybrid Instruments** 

Hybrid instruments combine elements of two different kinds of securities or financial instruments (such as a derivative contract). Frequently, the value of a hybrid instrument is determined by reference to changes in the value of a Reference Instrument (that is a designated security, commodity, currency, index or other asset or instrument including a derivative contract). The Fund and the Underlying Fund may use hybrid instruments only in connection with permissible investment activities. Hybrid instruments can take on many forms including, but not limited to, the following forms. First, a common form of a hybrid instrument combines elements of a derivative contract with those of another security (typically a fixed-income security). In this case all or a portion of the interest or principal payable on a hybrid security is determined by reference to changes in the price of a Reference Instrument. Second, hybrid instruments may include convertible securities with conversion terms related to a Reference Instrument.

Depending on the type and terms of the hybrid instrument, its risks may reflect a combination of the risks of investing in the Reference Instrument with the risks of investing in other securities, currencies, and derivative contracts. Thus, an investment in a hybrid instrument may entail significant risks in addition to those associated with traditional investments or the Reference Instrument. Hybrid instruments are also potentially more volatile than traditional securities or the Reference Instrument. Moreover, depending on the structure of the particular hybrid, it may expose the Fund or the Underlying Fund to leverage risks or carry liquidity risks.

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**Derivatives Regulation and Asset Coverage** 

The regulation of the U.S. and non-U.S. derivatives markets has undergone substantial change in recent years and such change may continue. In addition, effective August 19, 2022, Rule 18f-4 (the "Derivatives Rule") under the Investment Company Act of 1940, as amended (the "1940 Act"), replaced the asset segregation framework previously used by funds to comply with limitations on leverage imposed by the 1940 Act. The Derivatives Rule generally mandates that a fund either limit derivatives exposure to 10% or less of its net assets, or in the alternative implement: (i) limits on leverage calculated based value-at-risk (VAR); (ii) a written derivatives risk management program (DRMP) administered by a derivatives risk manager appointed by the Fund's Board, including a majority of the independent Board members, that is periodically reviewed by the Board; and (iii) new reporting and recordkeeping requirements.

As the Fund's derivative exposure, if any, is 10% or less of its net assets, excluding certain currency and interest rate hedging transactions, the Fund is classified as a limited derivatives user under the Derivatives Rule and will not be subject to the full requirements of the Derivatives Rule as noted above, including VAR testing and stress testing and certain Board reporting requirements. However, the Fund is still required to implement written compliance policies and procedures reasonably designed to manage its derivatives risks and monitor its derivatives exposure daily.

**Illiquid Investments** 

Illiquid investments are those that the Fund reasonably expects cannot be sold or disposed of in current market conditions seven calendar days or less without the sale or disposition significantly changing the market value of the investment taking into account relevant market, trading and investment-specific considerations, and considering market depth. These may include private placements, repurchase agreements that the Fund cannot dispose of within seven days and securities eligible for resale under Rule 144A of the Securities Act of 1933.

**Additional Information Regarding the Security Selection Process** 

As part of analysis in its security selection process, among other factors, the Adviser also evaluates whether environmental, social and governance factors could have a positive or negative impact on the risk profiles of many issuers or guarantors in the universe of securities in which the Fund may invest. The Adviser may also consider information derived from active engagements conducted by its in-house stewardship team with certain issuers or guarantors on environmental, social and governance topics. This qualitative analysis does not automatically result in including or excluding specific securities but may be used by Federated Hermes as an additional input in its primary analysis.

What are the Specific Investment Risks of the Fund and the Underlying Fund?

Shareholders of the Fund will be exposed to the following risks either directly to the extent that the Fund invests in securities directly or indirectly to the extent that the Fund invests in the Underlying Fund. The Fund, or the Underlying Fund, may invest in other types of securities as a non-principal investment; risks associated with investing in such other securities are described in the Fund's SAI.

**RISK ASSOCIATED WITH NONINVESTMENT-GRADE SECURITIES** 

Securities rated below investment grade, also known as junk bonds, generally entail greater economic, credit and liquidity risks than investment-grade securities. For example, their prices are more volatile, economic downturns and financial setbacks may affect their prices more negatively, and their trading market may be more limited. These securities are considered speculative with respect to the issuer's ability to pay interest and repay principal.

**issuer Credit Risk** 

It is possible that interest or principal on securities will not be paid when due. Noninvestment-grade securities generally have a higher default risk than investment-grade securities. Such non-payment or default may reduce the value of the Fund's and the Underlying Fund's portfolio holdings, its share price and its performance.

Many fixed-income securities receive credit ratings from nationally recognized statistical rating organizations (NRSROs) such as Fitch Rating Service, Moody's Investor Services, Inc. and Standard & Poor's, that assign ratings to securities by assessing the likelihood of an issuer and/or guarantor default. Higher credit ratings correspond to lower perceived credit risk and lower credit ratings correspond to higher perceived credit risk. Credit ratings may be upgraded or downgraded from time to time as an NRSRO's assessment of the financial condition of a party obligated to make payments with respect to such securities and credit risk changes. The impact of any credit rating downgrade can be uncertain. Credit rating downgrades may lead to increased interest rates and volatility in financial markets, which in turn could negatively affect the value of the Fund's and the Underlying Fund's portfolio holdings, its share price and its

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investment performance. Credit ratings are not a guarantee of quality. Credit ratings may lag behind the current financial conditions of the issuer and/or guarantor and do not provide assurance against default or other loss of money. Credit ratings do not protect against a decline in the value of a security. If a security has not received a rating, the Fund must rely entirely upon the Adviser's credit assessment.

Fixed-income securities generally compensate for greater credit risk by paying interest at a higher rate. The difference between the yield of a security and the yield of a U.S. Treasury security or other appropriate benchmark with a comparable maturity (the "spread") measures the additional interest paid for risk. Spreads may increase generally in response to adverse economic or market conditions. A security's spread may also increase if the security's rating is lowered, or the security is perceived to have an increased credit risk. An increase in the spread will cause the price of the security to decline.

**Counterparty Credit Risk** 

Credit risk includes the possibility that a party to a transaction involving the Fund or the Underlying Fund will fail to meet its obligations. This could cause the Fund or the Underlying Fund to lose money or to lose the benefit of the transaction or prevent the Fund or the Underlying Fund from selling or buying other securities to implement its investment strategy.

**RISK RELATED TO THE ECONOMY** 

The value of the Fund's portfolio may decline in tandem with a drop in the overall value of the markets in which the Fund invests and/or other markets based on negative developments in the U.S. and global economies. Economic, political and financial conditions, or industry or economic trends and developments, may, from time to time, and for varying periods of time, cause volatility, illiquidity or other potentially adverse effects in the financial markets, including the fixed-income market. The commencement, continuation or ending of government policies and economic stimulus programs, changes in monetary policy, increases or decreases in interest rates, or other factors or events that affect the financial markets, including the fixed-income markets, may contribute to the development of or increase in volatility, illiquidity, shareholder redemptions and other adverse effects which could negatively impact the Fund's performance. For example, the value of certain portfolio securities may rise or fall in response to changes in interest rates, which could result from a change in government policies, and has the potential to cause investors to move out of certain portfolio securities, including fixed-income securities, on a large scale. This may increase redemptions from funds that hold large amounts of certain securities and may result in decreased liquidity and increased volatility in the financial markets. Market factors, such as the demand for particular portfolio securities, may cause the price of certain portfolio securities to fall while the prices of other securities rise or remain unchanged. Among other investments, lower-grade bonds and loans may be particularly sensitive to changes in the economy.

**Epidemic and Pandemic Risk** 

An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread globally. 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, 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 instruments. Any such impact could adversely affect the Fund's performance.

**Liquidity Risk** 

Trading opportunities are more limited for fixed-income securities that have not received any credit ratings, have received ratings below investment grade or are not widely held.

Also, if dealer capacity has not kept, or does not keep, pace with market growth, or if regulatory changes or other certain developments warrant, dealer inventories of securities (such as corporate bonds) may reach low levels and impact a dealer's ability to "make markets" (or buy or sell a security at a quoted bid and ask price).

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These factors may make it more difficult to sell or buy a security at a favorable price or time. Consequently, the Fund or the Underlying Fund may have to accept a lower price to sell a security or not sell a security, sell other securities to raise cash or give up an investment opportunity, any of which could have a negative effect on the Fund's or the Underlying Fund's performance. A significant reduction in dealer inventories or "market makers," or other factors resulting in infrequent trading of securities, can lead to decreased liquidity and may also lead to an increase in their price volatility. These affects may be exacerbated during times of economic or political stress. Noninvestment-grade securities generally have less liquidity than investment-grade securities.

Liquidity risk also refers to the possibility that the Fund or the Underlying Fund may not be able to sell a security or close out a derivative contract when it wants to. If this happens, the Fund or the Underlying Fund will be required to continue to hold the security or keep the position open, and the Fund or the Underlying Fund could incur losses. OTC derivative contracts generally carry greater liquidity risk than exchange-traded contracts. This risk may be increased in times of financial stress, if the trading market for OTC derivative contracts becomes restricted.

Loan instruments may not be readily marketable and may be subject to restrictions on resale. In some cases, negotiations involved in disposing of loans may require weeks to complete. Thus, transactions in loan instruments may take longer than seven days to settle. This could pose a liquidity risk to the Fund. Additionally, collateral on loan instruments may consist of assets that may not be readily liquidated, and there is no assurance that the liquidation of such assets will satisfy a borrower's obligations under the instrument.

Increased Fund redemption activity, which may occur in a rising interest rate environment or for other reasons, also may increase liquidity risk due to the need of the Fund to sell portfolio securities and may negatively impact Fund performance.

**CALL RISK** 

Call risk is the possibility that an issuer may redeem a fixed-income security before maturity (a "call") at a price below its current market price. An increase in the likelihood of a call may reduce the security's price.

If a fixed-income security is called, the Fund and the Underlying Fund may have to reinvest the proceeds in other fixed-income securities with lower interest rates, higher credit risks or other less favorable characteristics.

**Interest Rate Risk** 

Prices of fixed-income securities rise and fall in response to changes in interest rates. Generally, when interest rates rise, prices of fixed-income securities fall. However, market factors, such as the demand for particular fixed-income securities, may cause the price of certain fixed-income securities to fall while the prices of other securities rise or remain unchanged.

The longer the duration of a fixed-income security, the more susceptible it is to interest rate risk. The duration of a fixed-income security may be equal to or shorter than the stated maturity of a fixed-income security. Recent and potential future changes in monetary policy made by central banks and/or their governments are likely to affect the level of interest rates. Duration measures the price sensitivity of a fixed-income security given a change in interest rates. For example, if a fixed-income security has an effective duration of three years, a 1% increase in general interest rates would be expected to cause the security's value to decline about 3% while a 1% decrease in general interest rates would be expected to cause the security's value to increase about 3%.

**RISK OF FOREIGN INVESTING** 

Foreign securities pose additional risks because foreign economic or political conditions may be less favorable than those of the United States. Foreign financial markets may also have fewer investor protections. Securities in foreign markets may also be subject to taxation policies that reduce returns for U.S. investors.

Foreign companies and national governments may not provide information (including financial statements) as frequently or to as great an extent as companies in the United States. Foreign companies and national governments may also receive less coverage than U.S. companies by market analysts and the financial press. In addition, foreign countries may lack uniform accounting, auditing and financial reporting standards or regulatory requirements comparable to those applicable to U.S. companies. These factors may prevent the Fund or the Underlying Fund and its Adviser from obtaining information concerning foreign companies and national governments that is as frequent, extensive and reliable as the information available concerning companies in the United States.

Foreign countries may have restrictions on foreign ownership of securities or may impose exchange controls, capital flow restrictions or repatriation restrictions which could adversely affect the liquidity of the Fund or the Underlying Fund's investments.

Since many loan instruments involve parties (for example, lenders, borrowers and agent banks) located in multiple jurisdictions outside of the United States, there is a risk that a security interest in any related collateral may be unenforceable and obligations under the related loan agreements may not be binding.

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The foreign sovereign debt securities the Fund and Underlying Fund purchases involve specific risks, including that: (i) the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or interest when it becomes due because of political constraints, cash flow problems and other national economic factors; (ii) governments may default on their sovereign debt, which may require holders of such sovereign debt to participate in debt rescheduling or additional lending to defaulting governments; and (iii) there is no bankruptcy proceedings by which defaulted sovereign debt may be collected in whole or in part.

Legal remedies available to investors in certain foreign countries may be more limited than those available with respect to investments in the United States or in other foreign countries. The laws of some foreign countries may limit the Fund's or the Underlying Fund's ability to invest in securities of certain issuers organized under the laws of those foreign countries.

**RISK OF INVESTING IN DERIVATIVE CONTRACTS AND HYBRID INSTRUMENTS** 

The Fund's or the Underlying Fund's exposure to derivative contracts and hybrid instruments (either directly or through its investment in another investment company) involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. First, changes in the value of the derivative contracts and hybrid instruments in which the Fund and the Underlying Fund invest may not be correlated with changes in the value of the underlying Reference Instruments or, if they are correlated, may move in the opposite direction than originally anticipated. Second, while some strategies involving derivatives may reduce the risk of loss, they may also reduce potential gains or, in some cases, result in losses by offsetting favorable price movements in portfolio holdings. Third, there is a risk that derivative contracts and hybrid instruments may be erroneously priced or improperly valued and, as a result, the Fund and the Underlying Fund may need to make increased cash payments to the counterparty. Fourth, exposure to derivative contracts and hybrid instruments may have tax consequences to the Fund and the Underlying Fund and their shareholders. For example, derivative contracts and hybrid instruments may cause the Fund and the Underlying Fund to realize increased ordinary income or short-term capital gains (which are treated as ordinary income for federal income tax purposes) and, as a result, may increase taxable distributions to shareholders. In addition, under certain circumstances certain derivative contracts and hybrid instruments may cause the Fund and the Underlying Fund to: (a) incur an excise tax on a portion of the income related to those contracts and instruments; and/or (b) reclassify, as a return of capital, some or all of the distributions previously made to shareholders during the fiscal year as dividend income. Fifth, a common provision in OTC derivative contracts permits the counterparty to terminate any such contract between it and the Fund and the Underlying Fund, if the value of the Fund's and the Underlying Fund's total net assets declines below a specified level over a given time period. Factors that may contribute to such a decline (which usually must be substantial) include significant shareholder redemptions and/or a marked decrease in the market value of the Fund's and the Underlying Fund's investments. Any such termination of the Fund's and the Underlying Fund's OTC derivative contracts may adversely affect the Fund (for example, by increasing losses and/or costs, and/or preventing the Fund and the Underlying Fund from fully implementing their investment strategies). Sixth, the Fund or the Underlying Fund may use a derivative contract to benefit from a decline in the value of a Reference Instrument. If the value of the Reference Instrument declines during the term of the contract, the Fund or the Underlying Fund makes a profit on the difference (less any payments the Underlying Fund is required to pay under the terms of the contract). Any such strategy involves risk. There is no assurance that the Reference Instrument will decline in value during the term of the contract and make a profit for Fund or the Underlying Fund. The Reference Instrument may instead appreciate in value creating a loss for the Fund or Underlying Fund. Seventh, a default or failure by a CCP or an FCM (also sometimes called a "futures broker"), or the failure of a contract to be transferred from an Executing Dealer to the FCM for clearing, may expose the Fund and the Underlying Fund to losses, increase its costs, or prevent the Fund and the Underlying Fund from entering or exiting derivative positions, accessing margin, or fully implementing its investment strategies. The central clearing of a derivative and trading of a contract over a SEF could reduce the liquidity in, or increase costs of entering into or holding, any contracts. Finally, derivative contracts and hybrid instruments may also involve other risks described in this Prospectus, such as interest rate, credit, liquidity and leverage risk.

**LEVERAGE RISK** 

Leverage risk is created when an investment, which includes, for example, an investment in a derivative contract, exposes the Fund or the Underlying Fund to a level of risk that exceeds the amount invested. Changes in the value of such an investment magnify the Fund's or the Underlying Fund's risk of loss and potential for gain.

Investments can have these same results if their returns are based on a multiple of a specified index, security or other benchmark.

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**CUSTODIAL SERVICES AND RELATED INVESTMENT COSTS** 

Custodial services and other costs relating to investment in international securities markets generally are more expensive than in the United States. Such markets have settlement and clearance procedures that differ from those in the United States. In certain markets, there have been times when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct such transactions. The inability of the Fund or Underlying Fund to make intended securities purchases due to settlement problems could cause the Fund or Underlying Fund to miss attractive investment opportunities. Inability to dispose of a portfolio security caused by settlement problems could result in losses to the Fund or Underlying Fund due to a subsequent decline in value of the portfolio security.

**RISK OF NON-DIVERSIFIED FUND** 

The Fund is non-diversified. Compared to diversified mutual funds, it may invest a higher percentage of its assets among fewer issuers of portfolio securities. In certain situations, being non-diversified may reduce the Fund's credit risk by enabling it to avoid investing in certain countries, regions or sectors that exhibit above average credit risk. However, being non-diversified may also increase the Fund's risk by magnifying the impact (positively or negatively) that only one issuer has on the Fund's share price and performance.

**SHARE OWNERSHIP CONCENTRATION RISK** 

A majority of the Underlying Fund's shares may be held by other mutual funds advised by the Adviser and its affiliates. It also is possible that some or all of these other mutual funds will decide to purchase or redeem shares of the Underlying Fund simultaneously or within a short period of time of one another in order to execute their asset allocation strategies. Accordingly, there is a risk that the share trading activities of these shareholders could disrupt the Underlying Fund's investment strategies which could have adverse consequences for the Underlying Fund and other shareholders (e.g., by requiring the Underlying Fund to sell investments at inopportune times or causing the Underlying Fund to maintain larger-than-expected cash positions pending acquisition of investments).

**technology Risk** 

The Adviser uses various technologies in managing the Fund, consistent with its investment objective(s) and strategy described in this Prospectus. For example, proprietary and third-party data and systems are utilized to support decision-making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance.

**UNDERLYING FUND RISK** 

The risk that the Fund's performance is closely related to, the risks associated with the securities and other investments held by the Underlying Funds and that the ability of a Fund to achieve its investment objective will depend upon the ability of the Underlying Funds to achieve their investment objectives. The Fund bears Underlying Fund fees and expenses indirectly.

How to Invest in the Fund

The Fund is used to implement fixed-income investment strategies for investors in wrap fee, separately managed and other discretionary investment accounts that are advised or sub-advised by Federated Investment Counseling (FIC), a subsidiary of Federated Hermes, or its affiliates, or certain other third-party discretionary managers that have a business relationship with FIC as described below. The Fund is advised by Federated Investment Management Company (the "Adviser"), another subsidiary of Federated Hermes, and an affiliate of FIC.

For purposes of this Prospectus: (1) the fixed-income investment strategies implemented through investments in the Fund are referred to as the "Fixed-Income Strategies"; (2) the investors in the wrap fee, separately managed and other discretionary investment accounts that may be permitted to invest in the Fund are referred to as "Eligible Investors"; (3) the wrap fee, separately managed and other discretionary investment accounts in which Eligible Investors may invest are referred to as "Eligible Accounts"; and (4) FIC, its affiliates and any other third-party discretionary managers that may invest Eligible Investors' assets in the Fund are referred to as "Discretionary Managers."

Eligible Investors in the Fund do not include investment companies under the Investment Company Act of 1940 ("1940 Act"), as amended, or private funds exempt from registration under the 1940 Act pursuant to Sections 3(c)(1) or 3(c)(7) of the 1940 Act, unless appropriate exemptive relief is obtained under the 1940 Act and the Fund determines to accept the purchase order for such an investment. In addition, unless the Fund determines to accept a purchase order for an investment, an Eligible Investor in the Fund does not include: (i) a non-resident alien within the meaning of I.R.C. § 7701(b)(1)(B) who is a natural person; (ii) a covered expatriate (i.e., a U.S. citizen temporarily residing abroad) within the meaning of I.R.C. § 877A(g)(1)(A); (iii) a foreign institutional investor; or (iv) a fund or investor in the European Union.

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At any time that an investor in the Fund ceases to be an Eligible Investor and FIC (or its affiliate) is acting in a discretionary capacity, the Fund will redeem the Fund's Shares held by such investor. At any time that an investor in the Fund (through a relationship with a third-party discretionary manager that has a business relationship with FIC (or its affiliate)) ceases to be an Eligible Investor, the third-party discretionary manager will redeem the Fund's Shares held by such investor. In all circumstances, Federated Securities Corp. reserves the right to authorize the liquidation of shares for ineligible investors.

The Fixed-Income Strategies may include investments in individual securities, as well as shares of the Fund ("Shares"), depending upon the type of Eligible Account, the applicable investment objectives, restrictions and investment mandate of an Eligible Investor, instructions provided by an Eligible Investor or Discretionary Manager or other relevant factors. The Fund is designed to purchase securities required for the Fixed-Income Strategies that cannot be efficiently held individually in Eligible Accounts, but can be effectively held in a pooled vehicle, such as a mutual fund.

When the Fund is used to implement Fixed-Income Strategies for wrap fee and separately managed accounts, the wrap fee program sponsors or separately managed account managers typically will have contracts with Eligible Investors to provide investment management, custody and/or other services to Eligible Investors in connection with investments in Eligible Accounts. Eligible Investors typically will pay negotiated asset-based fees, which may vary, for the services. In wrap fee programs, the fees generally will be aggregated or "bundled." FIC, or an affiliate, will be engaged as an adviser or sub-adviser to manage, on a discretionary basis, assets of the Eligible Investors invested in the Eligible Accounts in accordance with one or more Fixed-Income Strategies developed by FIC or an affiliate. FIC, or an affiliate, typically will receive negotiated asset-based investment advisory fees for managing the Eligible Investors' assets and performing other administrative services. These fees received by FIC or an affiliate, may vary between wrap fee program sponsors and/or separately managed account managers, and typically will be paid out of the aggregated fees charged to Eligible Investors by the wrap fee program sponsors and/or separately managed account managers. The fees received by FIC, or an affiliate, will be paid for separate account advisory services which are separate from the Adviser's management of the Fund. Where FIC, or an affiliate, will be the Discretionary Manager for Eligible Accounts of Eligible Investors, FIC, or an affiliate, will implement the applicable Fixed-Income Strategies through, among other possible investments, purchasing and redeeming Shares of the Fund on behalf of the Eligible Investors. In such cases, the Fund will be used to implement certain investment strategies offered by FIC, including an investment strategy for Eligible Accounts. The Adviser does not charge a fee for its advisory services to the Fund and has contractually agreed to reimburse all operating expenses, excluding extraordinary expenses, incurred by the Fund. However, as discussed above in "Investing in Securities of Other Investment Companies," the Fund may invest its assets in securities of other investment companies, including the securities of affiliated money market funds, as an efficient means of implementing its investment strategies, managing its uninvested cash and/or other investment reasons consistent with the Fund's investment objective and investment strategies. For example, the Fund may decide to have any excess cash swept on a daily basis into an affiliated money market fund. These other investment companies are managed independently of the Fund and incur additional fees and/or expenses which would, therefore, be borne indirectly by the Fund in connection with any such investment.

If the Fund is used to implement Fixed-Income Strategies for other separately managed or discretionary investment accounts, FIC, or an affiliate, will not manage, on a discretionary basis, the accounts of the Eligible Investors invested in these types of Eligible Accounts. The Discretionary Managers of the Eligible Investors' accounts will be third-party discretionary managers. These Discretionary Managers typically will have contracts with Eligible Investors to provide investment management, custody and/or other services to Eligible Investors in connection with investments in these Eligible Accounts. Eligible Investors typically will pay negotiated asset-based fees, which may vary, for the services. These Discretionary Managers will be engaged as advisers or sub-advisers to manage, on a discretionary basis, assets of the Eligible Investors invested in these Eligible Accounts in accordance with one or more Fixed-Income Strategies developed by these Discretionary Managers. These Discretionary Managers will have separate contracts with FIC, or an affiliate, to provide these Discretionary Managers with one or more model portfolios for Fixed-Income Strategies developed by FIC or an affiliate, as well as recommendations for updates to the model portfolios. These Discretionary Managers will use the model portfolios, and recommended updates, at their discretion to develop the Discretionary Managers' Fixed-Income Strategies. FIC, or an affiliate, will not have discretionary authority over Eligible Investors' accounts. As compensation for providing the model portfolios and recommended updates, FIC, or an affiliate, typically will receive negotiated asset-based fees, which will be determined based on the amount of assets under management these Discretionary Managers manage in accordance with their Fixed-Income Strategies that they develop using the model portfolios, and recommended updates, provided by FIC or an affiliate. These fees received by FIC or an affiliate, may vary between Discretionary Managers, and will be paid to FIC, or an affiliate, by these Discretionary Managers. The fees received by FIC, or an affiliate, will be paid for services separate from the Adviser's management of the Fund. These Discretionary Managers will have the option to implement their Fixed-Income Strategies through, among other possible investments, purchasing and redeeming Shares of the Fund on behalf of the Eligible Investors.

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Shareholders of the Fund, as Eligible Investors, are strongly encouraged to read carefully the wrap fee brochure or other disclosure documents provided to them in connection with their investments in wrap fee, separately managed or other discretionary investment accounts (i.e., the Eligible Accounts). To the extent that an Eligible Investor has imposed investment restrictions on its Eligible Accounts, the Fund may hold investments that are inconsistent with the Eligible Investor's investment restrictions. These brochures and disclosure documents will contain information about the fees charged to Eligible Investors in connection with their investments in the Eligible Accounts. These brochures and other disclosure documents will contain information about the fees paid or received by the wrap fee program sponsors, or Discretionary Managers or other third-parties, to or from FIC, or its affiliates, in connection with the Eligible Investors' investments in the Eligible Accounts. These brochures and disclosure documents also will contain other important information regarding the Discretionary Managers and Eligible Accounts, such as minimum Eligible Account sizes. Shareholders of the Fund, as Eligible Investors, pay no additional fees or expenses to purchase Shares of the Fund.

To the extent permitted under applicable law, the Fund may also be used as an investment option for other investment companies managed by the Adviser or an affiliate. These other investment companies are referred to in this Prospectus as "Affiliated Funds." As a result, at any time, shareholders of the Fund may include Eligible Investors and, to the extent permitted under applicable law, Affiliated Funds.

Shares of the Fund held by an Eligible Investor may be purchased or redeemed only at the direction of FIC or another Discretionary Manager of the Eligible Account. To the extent the Fund is permitted as an investment option for an Affiliated Fund, Shares also may be purchased and redeemed at the discretion of an Affiliated Fund's adviser. Shares can be purchased or redeemed on any day the New York Stock Exchange (NYSE) is open.

What Do Shares Cost?

**CALCULATION OF NET ASSET VALUE**

When the Fund receives a transaction request in proper form (as described in this Prospectus under the sections entitled "How to Purchase Shares" and "How to Redeem Shares"), it is processed at the next calculated net asset value of a Share (NAV). A Share's NAV is determined as of the end of regular trading on the New York Stock Exchange (NYSE) (normally 4:00 p.m. Eastern time) each day the NYSE is open. The Fund calculates the NAV by valuing its assets, subtracting its liabilities, and dividing the balance by the number of Shares outstanding. The Fund's current NAV and/or public offering price may be found at FederatedInvestors.com, via online news sources and in certain newspapers.

Eligible Investors can purchase, redeem or exchange Shares any day the NYSE is open.

When the Fund holds securities that trade principally in foreign markets on days the NYSE is closed, the value of the Fund's assets may change on days you cannot purchase or redeem Shares. This may also occur when the U.S. markets for fixed-income securities are open on a day the NYSE is closed.

Valuation of Portfolio Securities by the Fund and the Underlying Fund

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

Each of the Fund and the Underlying Fund generally values portfolio securities in calculating NAV as follows:

◾ Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Adviser.

◾ 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.

◾ OTC derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser.

If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund and the Underlying 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, or if information furnished by a pricing service, in the opinion of the Valuation Committee, is deemed not representative of the fair value of such security, the Fund and the Underlying Fund use the fair value of the investment determined in accordance with the procedures generally described below. There can be no assurance that the Fund and the Underlying 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.

Shares of other mutual funds are valued based upon their reported NAVs. The prospectuses for these mutual funds explain the circumstances under which they will use fair value pricing and the effects of using fair value pricing.

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**Fair Valuation and Significant Events Procedures** 

Pursuant to Rule 2a-5 under the Investment Company Act of 1940, the Board of Trustees (Board) has designated the Adviser as the Fund's and Underlying Fund's valuation designee to perform the fair valuation determination for securities and other assets held by the Fund. 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 subject to Board oversight and certain reporting and other requirements intended to provide the Board the information it needs to oversee the Adviser's fair value determinations.

The Valuation Committee is also authorized to use pricing services to provide fair price evaluations of the current fair value of certain investments for purposes of calculating the NAV. 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 as the valuation designee. The Board periodically reviews the fair valuations made by the Valuation Committee. The Board has 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. The Fund's and the Underlying Fund's Statements of Additional Information (SAI) discuss the methods used by pricing services and the Valuation Committee in valuing investments.

Using fair value to price investments may result in a value that is different from an investment's most recent closing price and from the prices used by other registered funds to calculate their NAVs. The application of the fair value procedures to an investment represents a good faith determination of such investment's fair value. 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 could be materially different.

The Adviser also has 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:

◾ With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;

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

◾ Announcements concerning matters such as acquisitions, recapitalizations, or 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 and the Underlying 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. The Board periodically reviews fair valuations made in response to significant events.

The fair valuation of securities following a significant event can serve to reduce arbitrage opportunities for short-term traders to profit at the expense of long-term investors in the Fund and the Underlying Fund. For example, such arbitrage opportunities may exist when the market on which portfolio securities are traded closes before the Fund and the Underlying Fund calculate their NAV, which is typically the case with Asian and European markets. However, there is no assurance that these significant event procedures will prevent dilution of the NAV by short-term traders. See "Account and Share Information–Frequent Trading Policies" for other procedures the Fund and the Underlying Fund employ to deter such short-term trading.

How to Purchase Shares

Shares of the Fund held for an Eligible Investor may be purchased only at the direction of FIC or another Discretionary Manager of the Eligible Account. To the extent the Fund is permitted as an investment option for an Affiliated Fund, Shares also may be purchased at the discretion of the Affiliated Fund's adviser. Shares of the Fund may be purchased any day the NYSE is open. An account may be established and Shares purchased by submitting an Account Application and purchase request in good order to the Fund's Transfer Agent, SS&C GIDS, Inc.

Payment by federal funds must be received by the Fund's custodian by 3:00 p.m. (Eastern time) the next business day following the receipt of the purchase order. The Fund reserves the right to reject any request to purchase Shares.

**19**

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How to Redeem Shares

Shares of the Fund held by an Eligible Investor may be redeemed only at the direction of FIC or another Discretionary Manager of the Eligible Investor's Eligible Account. Shares held by an Affiliated Fund may be redeemed at the discretion of an Affiliated Fund's adviser.

Shares held by or on behalf of a shareholder who ceases to be an Eligible Investor (as defined above) must be redeemed and each shareholder on whose behalf FIC or another Discretionary Manager has purchased Shares agrees to any such redemption. If FIC (or its affiliate) is acting in a discretionary capacity, the Fund will redeem the Fund's Shares held by such investor. If the Fund Shares were purchased through a relationship with a third-party Discretionary Manager that has a business relationship with FIC (or its affiliate), the third-party Discretionary Manager will redeem the Fund's Shares held by such investor. In all circumstances, Federated Securities Corp. reserves the right to authorize the liquidation of shares for ineligible investors. The Fund will attempt to provide the applicable Discretionary Manager and/or wrap program sponsor with advance notice of any such redemption on behalf of the shareholder.

Shares of the Fund may be redeemed any day the NYSE is open by submitting a redemption request in good order to the Fund's Transfer Agent, SS&C GIDS, Inc. Redemption requests received before the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time) will receive a redemption amount based on that day's NAV.

Redemption proceeds normally are wired or mailed within one business day for each method of payment after receiving a timely request in proper form. Depending upon the method of payment, when shareholders receive redemption proceeds can differ. Payment may be delayed for up to seven days under certain circumstances (see "Limitations on Redemption Proceeds").

**PAYMENT METHODS FOR REDEMPTIONS** 

Redemption proceeds will be paid by one of the following methods established by the Discretionary Manager or affiliated Adviser:

◾ an electronic transfer to the shareholder's wrap fee, separately managed or discretionary investment account (i.e., Eligible Account) custodied at a financial institution that is an ACH member;

◾ wire payment to the shareholder's wrap fee, separately managed or discretionary investment account (i.e., Eligible Account) custodied at a domestic commercial bank that is a Federal Reserve System member; or

◾ check mailed to the qualified custodian of the shareholder's wrap fee, separately managed or discretionary investment accounts (i.e., Eligible Account).

Redemption proceeds normally are wired or mailed within one business day for each method of payment after receiving a timely request in proper form. Depending upon the method of payment, when shareholders receive redemption proceeds can differ. Payment may be delayed for up to seven days under certain circumstances (see "Limitations on Redemption Proceeds").

**Methods the Fund May Use to Meet Redemption Requests** 

The Fund intends to pay Share redemptions in cash. To ensure that the Fund has cash to meet Share redemptions on any day, the Fund typically expects to hold a cash or cash equivalent reserve or sell portfolio securities.

In unusual or stressed circumstances, the Fund may generate cash in the following ways:

◾ **Inter-fund Borrowing and Lending.** The SEC has granted an exemption that permits the Fund and all other funds advised by subsidiaries of Federated Hermes ("Federated Hermes funds") to lend and borrow money for certain temporary purposes directly to and from other Federated Hermes funds. Inter-fund borrowing and lending is permitted only: (a) to meet shareholder redemption requests; (b) to meet commitments arising from "failed" trades; and (c) for other temporary purposes. All inter-fund loans must be repaid in seven days or less.

◾ **Committed 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. The LOC was made available to temporarily finance the repurchase or redemption of shares of the funds, 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.

◾ **Redemption in Kind.** Although the Fund intends to pay Share redemptions in cash, it reserves the right to pay the redemption price in whole or in part by an "in-kind" distribution of the Fund's portfolio securities. Because the Fund has elected to be governed by Rule 18f-1 under the 1940 Act, the Fund is obligated to pay Share redemptions to any one shareholder in cash only up to the lesser of $250,000 or 1% of the net assets represented by such Share class during any 90-day period. Redemptions in kind are made consistent with the procedures adopted by the Fund's Board, which generally include distributions of a pro rata share of the Fund's portfolio assets. Redemption in kind is not as liquid as a cash redemption. If redemption is made in kind, securities received may be subject to market risk and the shareholder could incur taxable gains and brokerage or other charges in converting the securities to cash.

**20**

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**LIMITATIONS ON REDEMPTION PROCEEDS**

Redemption proceeds normally are wired or mailed within one business day after receiving a request in proper form. Payment may be delayed up to seven days:

◾ to allow a purchase to clear;

◾ during periods of market volatility;

◾ when a shareholder's trade activity or amount adversely impacts the Fund's ability to manage its assets; or

◾ during any period when the Federal Reserve wire or applicable Federal Reserve banks are closed, other than customary weekend and holiday closings.

If a redemption of Shares recently purchased by check (including a cashier's check or certified check), money order, bank draft or ACH is requested, redemption proceeds may not be made available up to seven calendar days to allow the Fund to collect payment on the instrument used to purchase such Shares. If the purchase instrument does not clear, any purchase order will be canceled and the party submitting such payment will be responsible for any losses incurred by the Fund as a result of the canceled order.

In addition, redemptions may be suspended, or the payment of proceeds may be delayed, during any period:

◾ when the NYSE is closed, other than customary weekend and holiday closings;

◾ when trading on the NYSE is restricted, as determined by the SEC;

◾ in which an emergency exists, as determined by the SEC, so that disposal of the Fund's investments or determination of its NAV is not reasonably practicable; or

◾ as the SEC may by order permit for the protection of Fund shareholders.

You will not accrue interest or dividends on uncashed redemption checks from the Fund when checks are undeliverable and returned to the Fund.

**Share Certificates** 

The Fund does not issue share certificates.

Account and Share Information

**CONFIRMATIONS AND ACCOUNT STATEMENTS** 

Shareholders will receive confirmation of purchases and redemptions and periodic statements reporting all account activity, including dividends and capital gains paid.

Certain states, including the State of Texas, have laws that allow shareholders to designate a representative to receive abandoned or unclaimed property ("escheatment") notifications by completing and submitting a designation form that generally can be found on the official state website. If a shareholder resides in an applicable state, and elects to designate a representative to receive escheatment notifications, escheatment notices generally will be delivered as required by such state laws, including, as applicable, to both the shareholder and the designated representative. A completed designation form may be mailed to the Fund (if Shares are held directly with the Fund) or to the shareholder's financial intermediary (if Shares are not held directly with the Fund). Shareholders should refer to relevant state law for the shareholder's specific rights and responsibilities under his or her state's escheatment law(s), which can generally be found on a state's official website.

**DIVIDENDS AND CAPITAL GAINS**

The Fund declares any dividends daily and pays them monthly to shareholders. If you purchase Shares by wire, you begin earning dividends on the day your wire is received. If you purchase Shares by check, you begin earning dividends on the business day after the Fund receives your check. In either case, you earn dividends through the day your redemption request is received. Dividends on investments in the Fund are generally paid in cash and dividend reinvestment is generally not available.

In addition, the Fund pays any capital gains at least annually, and may make such special distributions of dividends and capital gains as may be necessary to meet applicable regulatory requirements.

Shares purchased just before the record date for a capital gain distribution will pay the full price for the shares and then receive a portion of the price back in the form of a taxable distribution. Investors should consider the tax implications of purchasing Shares shortly before the record date for a capital gain.

Under the federal securities laws, the Fund is required to provide a notice to shareholders regarding the source of distributions made by the Fund if such distributions are from sources other than ordinary investment income. In addition, important information regarding the Fund's distributions, if applicable, is available at FederatedInvestors.com/product-landing/managedaccount-pools.do. Select a product name, then click "Distributions and Taxes."

**21**

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**TAX INFORMATION**

The Fund and/or your financial intermediary provides year-end tax information and an annual statement of each shareholder's account activity to assist shareholders in completing their federal, state and local tax returns. Fund distributions of dividends and capital gains are taxable to shareholders whether paid in cash or reinvested in the Fund. Dividends are taxable at different rates depending on the source of dividend income. Distributions of net short-term capital gains are taxable to shareholders as ordinary income. Distributions of net long-term capital gains are taxable to shareholders as long-term capital gains regardless of how long a shareholder has owned the Shares.

Fund distributions are expected to be both dividends and capital gains. Redemptions and exchanges are taxable sales. Please consult your tax adviser regarding your federal, state and local tax liability.

**FREQUENT TRADING POLICIES** 

Frequent or short-term trading into and out of the Fund can have adverse consequences for the Fund and its shareholders who use the Fund as a long-term investment vehicle. Such trading in significant amounts can disrupt the Fund's investment strategies (e.g., by requiring it to sell investments at inopportune times or maintain excessive short-term cash positions to support redemptions), increase brokerage and administrative costs and affect the timing and amount of taxable gains distributed by the Fund. Investors engaged in such trading may also seek to profit by anticipating changes in the Fund's NAV in advance of the time as of which NAV is calculated. Given that: (a) the Fund is used exclusively to implement certain Fixed Income Strategies for Eligible Investors in Eligible Accounts and, to the extent permitted by applicable law, as an investment option for Affiliated Funds as described in this Prospectus; (b) FIC has the ability to limit Eligible Investors' investments in the Fund and Fund Share purchases, and redemptions for Eligible Accounts will be at the direction of FIC or another Discretionary Manager; (c) with respect to Eligible Accounts, Fund Share purchases and redemptions will be made on a frequent basis generally only for account initialization, rebalancing and liquidation purposes, or in order to invest new monies or accommodate reductions in Eligible Account size; and (d) individual Eligible Investors will not be in a position to effect purchase or redemption orders directly, the Fund does not anticipate that, in the normal case, frequent or short-term trading into and out of the Fund will have significant unanticipated or adverse consequences for the Fund and its shareholders. For these reasons, the Fund's Board has not adopted policies or procedures to discourage frequent or short-term trading of the Fund's Shares.

Other funds in the Federated Hermes family of funds may impose monitoring policies. Under normal market conditions, such monitoring policies are designed to protect the funds being monitored and their shareholders, and the operation of such policies and shareholder investments under such monitoring are not expected to have materially adverse impact on the Federated Hermes funds or their shareholders. If you plan to purchase shares of another Federated Hermes fund, please read the prospectus of that other Federated Hermes fund for more information.

The Fund may invest in affiliated investment companies whose boards have determined not to adopt frequent trading policies. The Fund therefore may be exposed to any adverse consequences of any frequent or short-term trading in such funds, to the extent of the Fund's investment therein.

**PORTFOLIO HOLDINGS INFORMATION** 

Information concerning the Fund's portfolio holdings is available at FederatedInvestors.com/product-landing/managedaccount-pools.do. Select a product name then click on "Characteristics." A complete listing of the Fund's portfolio holdings as of the end of each calendar quarter is posted on the website 30 days (or the next business day) after the end of the quarter and remains posted for six months thereafter.

Summary portfolio composition information as of the close of each month is posted on the website 15 days (or the next business day) after month-end and remains posted until replaced by the information for the succeeding month. The summary portfolio composition information may include identification of the Fund's top 10 holdings, recent purchase and sale transactions and a percentage breakdown of the portfolio by sector.

You may also access portfolio information as of the end of the Fund's fiscal quarters at FederatedInvestors.com/product-landing/managedaccount-pools.do. Select a product then click on "Documents." The Fund's Annual Shareholder Report and Semi-Annual Shareholder Report contain complete listings of the Fund's portfolio holdings as of the end of the Fund's second and fourth fiscal quarters. Fiscal quarter information is made available on the website within 70 days after the end of the fiscal quarter. This information is also available in reports filed with the SEC at the SEC's website at sec.gov.

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 at FederatedInvestors.com/product-landing/managedaccount-pools.do.

**22**

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In addition, from time to time (for example, during periods of unusual market conditions), additional information regarding the Fund's portfolio holdings and/or composition may be posted to FederatedInvestors.com/product-landing/managedaccount-pools.do. If and when such information is posted, its availability will be noted on, and the information will be accessible from, the home page of the website.

Who Manages the Fund?

The Board governs the Fund. The Board selects and oversees the Adviser, Federated Investment Management Company. The Adviser manages the Fund's assets, including buying and selling portfolio securities. Federated Advisory Services Company (FASC), an affiliate of the Adviser, provides research, quantitative analysis, equity trading and transaction settlement and certain other support services to the Adviser. The fee for these services is paid by the Adviser and not by the Fund.

The address of the Adviser and FASC is 1001 Liberty Avenue, Pittsburgh, PA 15222-3779.

The Adviser and other advisory subsidiaries of Federated Hermes combined, advise approximately 102 registered investment companies spanning equity, fixed-income and money market mutual funds and also manage a variety of other pooled investment vehicles, private investment companies and customized separately managed accounts (including non-U.S./offshore funds). Federated Hermes' assets under management totaled approximately $668.9 billion as of December 31, 2022. Federated Hermes was established in 1955 as Federated Investors, Inc. and is one of the largest investment managers in the United States with nearly 2,000 employees. Federated Hermes provides investment products to more than 11,000 investment professionals and institutions.

The Adviser advises approximately 73 registered investment companies and also manages sub-advised funds. The Adviser's assets under management totaled approximately $399.6 billion as of December 31, 2022.

**PORTFOLIO MANAGEMENT INFORMATION**

**Mark E. Durbiano** 

Mark E. Durbiano, CFA, Senior Portfolio Manager, has been the Fund's portfolio manager since its inception in December of 2008.

Mr. Durbiano is Head of the Domestic High Yield Group and Head of the Bond Sector Pod/Committee. He is responsible for day to day management of the Fund focusing on asset allocation, interest rate strategy and security selection. He has been with the Adviser or an affiliate since 1982; has worked in investment management since 1982; has managed investment portfolios since 1984. Education: B.A., Dickinson College; M.B.A., University of Pittsburgh.

**Steven J. Wagner** 

Steven J. Wagner, Senior Portfolio Manager, has been the Fund's portfolio manager since February of 2018.

Mr. Wagner is responsible for providing research and advice on sector allocation and security selection. He has been with the Adviser or an affiliate since 1997; has worked in investment management since 1997; has managed investment portfolios since 2011. Education: B.S., Boston College; M.B.A., University of Pittsburgh.

The Fund's SAI provides additional information about the Portfolio Managers' compensation, management of other accounts and ownership of securities in the Fund.

**ADVISORY FEES**

The Adviser will not charge an advisory fee for its services to the Fund.

The Adviser's affiliate, FIC, may benefit from the Fund being used to implement Fixed Income Strategies for Eligible Investors' Eligible Accounts.

A discussion of the Board's review of the Fund's investment advisory contract is available in the Fund's Annual and Semi-Annual Shareholder Reports for the periods ended December 31 and June 30, respectively.

Financial Information

**FINANCIAL HIGHLIGHTS** 

The Financial Highlights will help you understand the Fund's financial performance for its past five fiscal years. Some of the information is presented on a per Share basis. Total returns represent the rate an investor would have earned (or lost) on an investment in the Fund, assuming reinvestment of any dividends and capital gains.

This information has been audited by Ernst & Young LLP, an independent registered public accounting firm, whose report, along with the Fund's audited financial statements, is included in the Annual Report.

**23**

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Financial Highlights

(For a Share Outstanding Throughout Each Period)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | **$13.16** | **$13.18** | **$13.20** | **$12.21** | **$13.29** |
| **Income From Investment Operations:** |  |  |  |  |  |
| Net investment income (loss) | 0.76 | 0.71 | 0.75 | 0.82 | 0.81 |
| Net realized and unrealized gain (loss) | (2.27) | (0.01) | (0.01) | 0.99 | (1.08) |
| TOTAL FROM INVESTMENT OPERATIONS | (1.51) | 0.70 | 0.74 | 1.81 | (0.27) |
| **Less Distributions:** |  |  |  |  |  |
| Distributions from net investment income | (0.77) | (0.72) | (0.76) | (0.82) | (0.81) |
| **Net Asset Value, End of Period** | **$10.88** | **$13.16** | **$13.18** | **$13.20** | **$12.21** |
| **Total Return**<sup>1</sup> | (11.63)% | 5.40% | 6.04% | 15.10% | (2.19)% |
| **Ratios to Average Net Assets:** |  |  |  |  |  |
| Net expenses<sup>2</sup> <br>| 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Net investment income | 6.24% | 5.42% | 5.93% | 6.30% | 6.26% |
| Expense waiver/reimbursement<sup>3</sup> | 0.55% | 0.25% | 0.45% | 0.41% | 0.45% |
| **Supplemental Data:** |  |  |  |  |  |
| Net assets, end of period (000 omitted) | $15889 | $125419 | $95707 | $44776 | $42319 |
| Portfolio turnover<sup>4</sup> | 24% | 2% | 23% | 25% | 20% |

---

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

---

| | |
|:---|:---|
| 1 | *Based on net asset value.* |
| 2 | *The Adviser has contractually agreed to reimburse all expenses of the Fund, excluding extraordinary expenses. Amount does not reflect net expenses incurred by* <br> *investment companies in which the Fund may invest.*<br>|
| 3 | *This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/*<br> *reimbursement recorded by investment companies in which the Fund may invest.*<br>|
| 4 | *Securities that mature are considered sales for purposes of this calculation.* |

---

Further information about the Fund's performance is contained in the Fund's Annual Report, dated December 31, 2022, which can be obtained free of charge.

**24**

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Appendix A: Hypothetical Investment and Expense Information

The following chart provides additional hypothetical information about the effect of the Fund's expenses, including investment advisory fees and other Fund costs, on the Fund's assumed returns over a 10-year period. The chart shows the estimated expenses that would be incurred in respect of a hypothetical investment of $10,000, assuming a 5% return each year, and no redemption of Shares. The chart also assumes that the Fund's annual expense ratio stays the same throughout the 10-year period (except for the impact of changes in contractual expense limitations) and that all dividends and distributions are reinvested. The annual expense ratio used in the chart is the same as stated in the "Fees and Expenses" table of this Prospectus (and thus do not reflect any other fee waiver or expense reimbursement currently in effect). The maximum amount of any sales charge that might be imposed on the *purchase* of Shares (and deducted from the hypothetical initial investment of $10,000; the "Front-End Sales Charge") is reflected in the "Hypothetical Expenses" column. The hypothetical investment information does not reflect the effect of charges (if any) normally applicable to *redemptions* of Shares (e.g., deferred sales charges, redemption fees). Mutual fund returns, as well as fees and expenses, may fluctuate over time, and your actual investment returns and total expenses may be higher or lower than those shown below.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **FEDERATED HERMES HIGH YIELD STRATEGY PORTFOLIO** | **FEDERATED HERMES HIGH YIELD STRATEGY PORTFOLIO** | **FEDERATED HERMES HIGH YIELD STRATEGY PORTFOLIO** | **FEDERATED HERMES HIGH YIELD STRATEGY PORTFOLIO** | **FEDERATED HERMES HIGH YIELD STRATEGY PORTFOLIO** | **FEDERATED HERMES HIGH YIELD STRATEGY PORTFOLIO** |
| **ANNUAL EXPENSE RATIO: 0.03%** | **ANNUAL EXPENSE RATIO: 0.03%** | **ANNUAL EXPENSE RATIO: 0.03%** | **ANNUAL EXPENSE RATIO: 0.03%** | **ANNUAL EXPENSE RATIO: 0.03%** | **ANNUAL EXPENSE RATIO: 0.03%** |
| **MAXIMUM FRONT-END SALES CHARGE: NONE** | **MAXIMUM FRONT-END SALES CHARGE: NONE** | **MAXIMUM FRONT-END SALES CHARGE: NONE** | **MAXIMUM FRONT-END SALES CHARGE: NONE** | **MAXIMUM FRONT-END SALES CHARGE: NONE** | **MAXIMUM FRONT-END SALES CHARGE: NONE** |
| **Year** | **Hypothetical**<br> **Beginning** <br> **Investment**<br>| **Hypothetical** <br> **Performance** <br> **Earnings**<br>| **Investment** <br> **After**<br> **Returns**<br>| **Hypothetical** <br> **Expenses**<br>| **Hypothetical** <br> **Ending**<br> **Investment**<br>|
| 1 | $10000.00 | $500.00 | $10500.00 | $3.07 | $10497.00 |
| 2 | $10497.00 | $524.85 | $11021.85 | $3.23 | $11018.70 |
| 3 | $11018.70 | $550.94 | $11569.64 | $3.39 | $11566.33 |
| 4 | $11566.33 | $578.32 | $12144.65 | $3.56 | $12141.18 |
| 5 | $12141.18 | $607.06 | $12748.24 | $3.73 | $12744.60 |
| 6 | $12744.60 | $637.23 | $13381.83 | $3.92 | $13378.01 |
| 7 | $13378.01 | $668.90 | $14046.91 | $4.11 | $14042.90 |
| 8 | $14042.90 | $702.15 | $14745.05 | $4.32 | $14740.83 |
| 9 | $14740.83 | $737.04 | $15477.87 | $4.53 | $15473.45 |
| 10 | $15473.45 | $773.67 | $16247.12 | $4.76 | $16242.48 |
| Cumulative |  | $6280.16 |  | $38.62 |  |

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**25**

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An SAI dated February 28, 2023, is incorporated by reference into this Prospectus. Additional information about the Fund and its investments is contained in the Fund's SAI and Annual and Semi-Annual Reports to shareholders as they become available. The Annual Report's Management's Discussion of Fund Performance discusses market conditions and investment strategies that significantly affected the Fund's performance during its last fiscal year. The SAI contains a description of the Fund's policies and procedures with respect to the disclosure of its portfolio securities. To obtain the SAI, Annual Report, Semi-Annual Report and other information without charge, and to make inquiries, call your financial intermediary, Discretionary Manager or the Fund at 1-800-341-7400.

The Fund's shareholder reports will be made available on FederatedInvestors.com/FundInformation, and you will be notified and provided with a link each time a report is posted to the website. You may request to receive paper reports from the Fund or from your financial intermediary, free of charge, at any time. You may also request to receive documents through e-delivery.

These documents, as well as additional information about the Fund (including portfolio holdings, performance and distributions) are also available at FederatedInvestors.com/product-landing/managedaccount-pools.do.

You can obtain information about the Fund (including the SAI) by accessing Fund information from the EDGAR Database on the SEC's website at sec.gov. You can purchase copies of this information by contacting the SEC by email at publicinfo@sec.gov.

![](fhilogok11p_2.jpg)

Federated Hermes High Yield Strategy Portfolio

Federated Hermes Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

Contact us at  **<u>FederatedInvestors.com</u>**

or call 1-800-341-7400.

Federated Securities Corp., Distributor

*Investment Company Act File No. 811-4017* 

*CUSIP 31421P209*

*35539 (2/23)*© 2023 Federated Hermes, Inc.

![](imgb29ae67a2.jpg)

------

**Statement of Additional Information**

***February 28, 2023***

![](img2e962e5d1.gif)

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

**Ticker** FHYSX<br>

------

Federated Hermes High Yield Strategy Portfolio

------

A Portfolio of Federated Hermes Managed Pool Series

This Statement of Additional Information (SAI) is not a Prospectus. Read this SAI in conjunction with the Prospectus for Federated Hermes High Yield Strategy Portfolio (the "Fund"), dated February 28, 2023.

This SAI incorporates by reference the Fund's Annual Report. Obtain the Prospectus or the Annual Report without charge by calling 1-800-341-7400.

---

| | |
|:---|:---|
|  | **Contents** |
| 1 | [How is the Fund Organized?](#xx_d239e63e-09a3-4cec-9b09-d462260d2973_1) |
| 1 | [Securities in Which the Fund and the Underlying Fund Invests](#xx_d239e63e-09a3-4cec-9b09-d462260d2973_1) |
| 12 | [Investment Risks](#xx_d239e63e-09a3-4cec-9b09-d462260d2973_12) |
| 18 | [Investment Objective and Investment Limitations](#xx_d239e63e-09a3-4cec-9b09-d462260d2973_18) |
| 20 | [What Do Shares Cost?](#xx_d239e63e-09a3-4cec-9b09-d462260d2973_20) |
| 23 | [How to Invest in the Fund?](#xx_d239e63e-09a3-4cec-9b09-d462260d2973_23) |
| 25 | [Purchases In-Kind](#xx_d239e63e-09a3-4cec-9b09-d462260d2973_25) |
| 25 | [Redemption In-Kind](#xx_d239e63e-09a3-4cec-9b09-d462260d2973_25) |
| 26 | [Massachusetts Partnership Law](#xx_d239e63e-09a3-4cec-9b09-d462260d2973_26) |
| 26 | [Account and Share Information](#xx_d239e63e-09a3-4cec-9b09-d462260d2973_26) |
| 26 | [Tax Information](#xx_d239e63e-09a3-4cec-9b09-d462260d2973_26) |
| 27 | [Who Manages and Provides Services to the Fund?](#xx_d239e63e-09a3-4cec-9b09-d462260d2973_27) |
| 41 | [Financial Information](#xx_d239e63e-09a3-4cec-9b09-d462260d2973_41) |
| 41 | [Investment Ratings](#xx_d239e63e-09a3-4cec-9b09-d462260d2973_41) |
| 46 | [Addresses](#xx_225a84f1-fac9-4d25-a075-a7cde2597fc0_1) |
| 47 | [Appendix](#xx_b4a37b91-6508-45c4-9694-923dc9082f87_1) |

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Federated Hermes High Yield Strategy Portfolio

Federated Hermes Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

Contact us at **FederatedInvestors.com**

or call 1-800-341-7400.

Federated Securities Corp., Distributor

*35540 (2/23)*© 2023 Federated Hermes, Inc.

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How is the Fund Organized?

The Fund is a non-diversified portfolio of Federated Hermes Managed Pool Series (the "Trust"). The Trust is an open-end, management investment company that was established under the laws of the Commonwealth of Massachusetts on October 3, 2005. The Trust may offer separate series of shares representing interests in separate portfolios of securities. The Fund's investment adviser is Federated Investment Management Company (the "Adviser"). As more fully explained in the Fund's Prospectus, the Fund is used to implement fixed-income investment strategies for eligible investors in wrap fee, separately managed and other discretionary investment accounts that are advised or subadvised by Federated Investment Counseling (FIC), a subsidiary of Federated Hermes Inc. ("Federated Hermes," formerly, Federated Investors, Inc.), or its affiliates or certain other discretionary managers. Shares of the Fund held for an eligible investor may be purchased only at the direction of FIC or other discretionary managers to such wrap fee, separately managed or other discretionary investment accounts. Effective June 26, 2020, the Trust changed its name from Federated Managed Pool Series to Federated Hermes Managed Pool Series and the Fund changed its name from Federated High Yield Strategy Portfolio to Federated Hermes High Yield Strategy Portfolio.

For purposes of this SAI: (1) the fixed income investment strategies implemented through investments in the Fund are referred to as the "Fixed Income Strategies"; (2) the investors in the wrap fee, separately managed and other discretionary investment accounts that may be permitted to invest in the Fund are referred to as "Eligible Investors"; (3) the wrap fee, separately managed and other discretionary investment accounts in which Eligible Investors may invest are referred to as "Eligible Accounts"; and (4) FIC, its affiliates and any other third-party discretionary managers that may invest Eligible Investors' assets in the Fund are referred to as "Discretionary Managers."

Securities in Which the Fund and the Underlying Fund Invests

The Fund pursues its investment objective by investing primarily in High Yield Bond Core Fund (the "Underlying Fund"), a portfolio of Federated Hermes Core Trust, a fund that also seeks high current income. The investment adviser for the Underlying Fund is Federated Investment Management Company (the "Underlying Fund's Adviser"). The Underlying Fund in turn may invest in the following securities, provided that such investment is consistent with its investment objective. The Fund may also invest in these types of securities directly. Effective February 25, 2021, the Underlying Fund changed its name from High Yield Bond Portfolio to High Yield Bond Core Fund.

**Fixed-income Securities** 

Fixed-income securities pay interest, dividends or distributions at a specified rate. The rate may be a fixed percentage of the principal or may be adjusted periodically. In addition, the issuer of a fixed-income security must repay the principal amount of the security, normally within a specified time. Fixed-income securities provide more regular income than equity securities. However, the returns on fixed-income securities are limited and normally do not increase with the issuer's earnings. This limits the potential appreciation of fixed-income securities as compared to equity securities.

A security's yield measures the annual income earned on a security as a percentage of its price. A security's yield will increase or decrease depending upon whether it costs less (a discount) or more (a premium) than the principal amount. If the issuer may redeem the security before its scheduled maturity, the price and yield on a discount or premium security may change based upon the probability of an early redemption. Securities with higher risks generally have higher yields.

The following further describes the types of fixed-income securities in which the Fund and the Underlying Fund may invest. This information is either additional information in respect of a principal security referenced in the Prospectus or Private Operating Memorandum or information in respect of a non-principal security (in which case there is no related disclosure in the Prospectus or Private Operating Memorandum).

**Commercial Paper (A Type of Corporate Debt Security)** 

Commercial paper is an issuer's obligation with a maturity of less than nine months. Companies typically issue commercial paper to pay for current expenditures. Most issuers constantly reissue their commercial paper and use the proceeds (or bank loans) to repay maturing paper. If the issuer cannot continue to obtain liquidity in this fashion, its commercial paper may default. The short maturity of commercial paper generally reduces both the market and credit risks as compared to other debt securities of the same issuer.

**Treasury Securities (A Type of Fixed-Income Security)** 

Treasury securities are direct obligations of the federal government of the United States. Treasury securities are generally regarded as having minimal credit risks.

**1**

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**Government Securities (A Type of Fixed-Income Security)** 

Government securities are issued or guaranteed by a federal agency or instrumentality acting under federal authority. Some government securities, including those issued by Government National Mortgage Association ("Ginnie Mae"), are supported by the full faith and credit of the United States and are guaranteed only as to the timely payment of interest and principal.

Other government securities receive support through federal subsidies, loans or other benefits, but are not backed by the full faith and credit of the United States. For example, the U.S. Treasury is authorized to purchase specified amounts of securities issued by (or otherwise make funds available to) the Federal Home Loan Bank System, Federal Home Loan Mortgage Corporation ("Freddie Mac") and Federal National Mortgage Association ("Fannie Mae") in support of such obligations.

Some government agency securities have no explicit financial support, and are supported only by the credit of the applicable agency, instrumentality or corporation. The U.S. government has provided financial support to Freddie Mac and Fannie Mae, but there is no assurance that it will support these or other agencies in the future.

Investors regard government securities as having minimal credit risks, but not as low as Treasury securities. The Fund and the Underlying Fund treat mortgage-backed securities guaranteed by a federal agency or instrumentality as government securities. Although such a guarantee helps protect against credit risk, it does not eliminate it entirely or reduce other risks.

***Additional Information Related to Freddie Mac and Fannie Mae.*** The extreme and unprecedented volatility and disruption that impacted the capital and credit markets beginning in 2008 led to market concerns regarding the ability of Freddie Mac and Fannie Mae to withstand future credit losses associated with securities held in their investment portfolios, and on which they provide guarantees, without the direct support of the federal government. On September 7, 2008, Freddie Mac and Fannie Mae were placed under the conservatorship of the Federal Housing Finance Agency (FHFA). Under the plan of conservatorship, the FHFA assumed control of, and generally has the power to direct, the operations of Freddie Mac and Fannie Mae, and is empowered to exercise all powers collectively held by their respective shareholders, directors and officers, including the power to: (1) take over the assets of and operate Freddie Mac and Fannie Mae with all the powers of the shareholders, the directors and the officers of Freddie Mac and Fannie Mae and conduct all business of Freddie Mac and Fannie Mae; (2) collect all obligations and money due to Freddie Mac and Fannie Mae; (3) perform all functions of Freddie Mac and Fannie Mae which are consistent with the conservator's appointment; (4) preserve and conserve the assets and property of Freddie Mac and Fannie Mae; and (5) contract for assistance in fulfilling any function, activity, action or duty of the conservator.

In connection with the actions taken by the FHFA, the Treasury has entered into certain preferred stock purchase agreements (SPAs) with each of Freddie Mac and Fannie Mae which establish the Treasury as the holder of a new class of senior preferred stock in each of Freddie Mac and Fannie Mae. The senior preferred stock was issued in connection with financial contributions from the Treasury to Freddie Mac and Fannie Mae. Although the SPAs are subject to amendment from time to time, currently the Treasury is obligated to provide such financial contributions up to an aggregate maximum amount determined by a formula set forth in the SPAs, and until such aggregate maximum amount is reached, there is not a specific end date to the Treasury's obligations.

The future status and role of Freddie Mac and Fannie Mae could be impacted by (among other things) the actions taken and restrictions placed on Freddie Mac and Fannie Mae by the FHFA in its role as conservator, the restrictions placed on Freddie Mac's and Fannie Mae's operations and activities under the SPAs, market responses to developments at Freddie Mac and Fannie Mae, downgrades or upgrades in the credit ratings assigned to Freddie Mac and Fannie Mae by nationally recognized statistical rating organizations (NRSROs) or ratings services, and future legislative and regulatory action that alters the operations, ownership, structure and/or mission of these institutions, each of which may, in turn, impact the value of, and cash flows on, any securities guaranteed by Freddie Mac and Fannie Mae.

In addition, the future of Freddie Mac and Fannie Mae, and other U.S. government-sponsored enterprises that are not backed by the full faith and credit of the U.S. government (GSEs), remains in question as the U.S. government continues to consider options ranging from structural reform, nationalization, privatization, or consolidation, to outright elimination. The issues that have led to significant U.S. government support for Freddie Mac and Fannie Mae have sparked serious debate regarding the continued role of the U.S. government in providing mortgage loan liquidity.

**Asset-Backed Securities (A Type of Fixed-Income Security)** 

Asset-backed securities are payable from pools of obligations other than mortgages. Most asset-backed securities involve consumer or commercial debts with maturities of less than 10 years. However, almost any type of fixed-income assets (including other fixed-income securities) may be used to create an asset-backed security. Asset-backed securities may take the form of commercial paper, notes or pass-through certificates. Asset-backed securities have prepayment risks. Like CMOs, asset-backed securities may be structured like Floaters, Inverse Floaters, IOs and POs.

**2**

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**IOs and POs (Types of Asset-Backed Securities)** 

Asset-backed securities may be structured to allocate interest payments to one class ("Interest Only" or IOs) and principal payments to another class ("Principal Only" or POs). POs increase in value when prepayment rates increase. In contrast, IOs decrease in value when prepayments increase, because the underlying mortgages generate less interest payments. However, IOs tend to increase in value when interest rates rise (and prepayments decrease), making IOs a useful hedge against interest rate risks.

**Floaters and Inverse Floaters (Types of Asset-Backed Securities)** 

Another variant allocates interest payments between two classes of asset-backed securities. One class ("Floaters") receives a share of interest payments based upon a market index such as the London Interbank Offered Rate (LIBOR). The other class ("Inverse Floaters") receives any remaining interest payments from the underlying pools of obligations. Floater classes receive more interest (and Inverse Floater classes receive correspondingly less interest) as interest rates rise. This shifts prepayment and interest rate risks from the Floater to the Inverse Floater class, reducing the price volatility of the Floater class and increasing the price volatility of the Inverse Floater class.

**Loan Instruments (A Type of Fixed-Income Security)** 

The Fund and the Underlying Fund may invest in loans and loan-related instruments, which are generally interests in amounts owed by a corporate, governmental or other borrower to lenders or groups of lenders known as lending syndicates (loans and loan participations). Such instruments include, but are not limited to, pre-export/import finance transactions, factoring, syndicated loan transactions and forfaiting transactions.

Investments in certain loans have additional risks that result from the use of agents and other interposed financial institutions. Such loans are structured and administered by a financial institution (e.g., a commercial bank) that acts as the agent of the lending syndicate.

The agent bank, which may or may not also be a lender, typically administers and enforces the loan on behalf of the lenders in the lending syndicate. In addition, an institution, typically but not always the agent bank, holds the collateral, if any, on behalf of the lenders. A financial institution's employment as an agent bank might be terminated for a number of reasons, for example, in the event that it fails to observe a requisite standard of care or becomes insolvent. A successor agent bank would generally be appointed to replace the terminated agent bank, and assets held by the agent bank under the loan agreement likely would remain available to holders of such indebtedness. However, if assets held by the agent bank for the benefit of the Fund were determined to be subject to the claims of the agent bank's general creditors, the Fund might incur certain costs and delays in realizing payment on a loan or loan participation and could suffer a loss of principal and/or interest. In situations involving other interposed financial institutions (e.g., an insurance company or government agency) similar risks may arise.

Loan instruments may be secured or unsecured. If secured, then the lenders have been granted rights to specific property, which is commonly referred to as collateral. The purpose of securing loans is to allow the lenders to exercise rights over the collateral if a loan is not repaid as required by the terms of the loan agreement. Collateral may include security interests in receivables, goods, commodities or real property. With regard to trade finance loan transactions, the collateral itself may be the source of proceeds to repay the loan (i.e., the borrower's ability to repay the loan will be dependent on the borrower's ability to sell, and the purchaser's ability to buy, the goods or commodities that are collateral for the loan). Interests in loan instruments may also be tranched or tiered with respect to collateral rights. Unsecured loans expose the lenders to increased credit risk.

The loan instruments in which the Fund and the Underlying Fund may invest may involve borrowers, agent banks, co-lenders and collateral located both in the United States and outside of the United States (in both developed and emerging markets).

The Fund and the Underlying Fund treat loan instruments as a type of fixed-income security. Investments in loan instruments may expose the Fund to interest rate risk, risks of investing in foreign securities, credit risk, liquidity risk, risks of noninvestment-grade securities, risks of emerging markets and leverage risk. (For purposes of the descriptions in this SAI of these various risks, references to "issuer" include borrowers under loan instruments.) Many loan instruments incorporate risk mitigation, credit enhancement (e.g., standby letters of credit) and insurance products into their structures, in order to manage these risks. There is no guarantee that these risk management techniques will work as intended.

Loans and loan-related instruments are generally considered to be illiquid due to the length of time required to transfer an interest in a loan or a related instrument. Additionally, in the case of some loans, such as those related to trade finance, there is a limited secondary market. The liquidity of a particular loan will be determined by the Adviser under guidelines adopted by the Fund's board.

**3**

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**Loan Assignments (A Type of Loan Instrument)** 

The Fund and the Underlying Fund may purchase a loan assignment from the agent bank or other member of the lending syndicate. Investments in loans through an assignment may involve additional risks to the Funds. For example, if a loan is foreclosed, a Fund could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. In addition, it is conceivable that under emerging legal theories of lender liability, a Fund could be held liable as co-lender. It is unclear whether loans and other forms of direct indebtedness offer securities law protections against fraud and misrepresentation. In the absence of definitive regulatory guidance, the Funds rely on the Adviser's research in an attempt to avoid situations where fraud or misrepresentation could adversely affect the Funds.

**Loan Participations (A Type of Loan Instrument)** 

The Fund and the Underlying Fund may purchase a funded participation interest in a loan, by which the Fund or the Underlying Fund have the right to receive payments of principal, interest and fees from an intermediary (typically a bank, financial institution, or lending syndicate) that has a direct contractual relationship with a borrower. In loan participations, the Fund or the Underlying Fund does not have a direct contractual relationship with the borrower.

The Fund or the Underlying Fund may also purchase a type of a participation interest, known as risk participation interest. In this case, the Fund or Underlying Fund will receive a fee in exchange for the promise to make a payment to a lender if a borrower fails to make a payment of principal, interest or fees, as required by the loan agreement.

When purchasing loan participations, the Fund or Underlying Fund will be exposed to credit risk of the borrower and, in some cases, the intermediary offering the participation. A participation agreement also may limit the rights of the Fund or Underlying Fund to vote on changes that may be made to the underlying loan agreement, such as waiving a breach of a covenant. The participation interests in which a Fund intends to invest may not be rated by any nationally recognized rating service or, if rated, may be below investment grade and expose the Fund or Underlying Fund to the risks of noninvestment-grade securities.

**Credit Enhancement** 

Credit enhancement consists of an arrangement in which a company agrees to pay amounts due on a fixed-income security if the issuer defaults. In some cases the company providing credit enhancement makes all payments directly to the security holders and receives reimbursement from the issuer. Normally, the credit enhancer may have greater financial resources and liquidity than the issuer. For this reason, the Fund's Adviser and the Underlying Fund's Adviser may evaluate the credit risk of a fixed-income security based solely upon its credit enhancement.

Common types of credit enhancement include guarantees, letters of credit, bond insurance and surety bonds. Credit enhancement also includes arrangements where securities or other liquid assets secure payment of a fixed-income security. If a default occurs, these assets may be sold and the proceeds paid to security's holders. Either form of credit enhancement reduces credit risks by providing another source of payment for a fixed-income security.

**Collateralized Loan Obligations** 

A collateralized loan obligation (CLO) is an asset-backed security whose underlying collateral is a pool of loans. Such loans may include domestic and foreign senior secured loans, senior unsecured loans and subordinate corporate loans, some of which may be below investment grade or equivalent unrated loans. Investments in CLOs carry the same risks as investments in loans directly, such as interest rate risk, issuer credit and liquidity risks. These investments are also subject to the risks associated with a decrease of market value due to collateral defaults and disappearance of subordinate tranches, market anticipation of defaults and investor aversion to these types of securities as a class. CLOs issue classes or "tranches" that vary in risk and yield. Losses caused by defaults on underlying assets are borne first by the holders of subordinate tranches. A CLO may experience substantial losses attributable to loan defaults. A Fund's investment in a CLO may decrease in market value because of: (i) loan defaults or credit impairment; (ii) the disappearance of subordinate tranches; (iii) market anticipation of defaults; and (iv) investor aversion to CLO securities as a class. These risks may be magnified depending on the tranche of CLO securities in which a Fund invests. For example, investments in a junior tranche of CLO securities will likely be more sensitive to loan defaults or credit impairment than investments in more senior tranches.

**Equity Securities** 

Equity securities represent a share of an issuer's earnings and assets, after the issuer pays its liabilities. The Fund and the Underlying Fund cannot predict the income they will receive from equity securities because issuers generally have discretion as to the payment of any dividends or distributions. However, equity securities offer greater potential for appreciation than many other types of securities, because their value increases directly with the value of the issuer's business.

**4**

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The following further describes the types of equity securities in which the Fund or the Underlying Fund may invest. This information is either additional information in respect of a principal security referenced in the Prospectus or Private Operating Memorandum or information in respect of a non-principal security (in which case there is no related disclosure in the Prospectus or Private Operating Memorandum).

**Common Stocks** 

Common stocks are the most prevalent type of equity security. Common stocks receive the issuer's earnings after the issuer pays its creditors and any preferred stockholders. As a result, changes in an issuer's earnings directly influence the value of its common stock.

**Interests in Other Limited Liability Companies** 

Entities such as limited partnerships, limited liability companies, business trusts and companies organized outside the United States may issue securities comparable to common or preferred stock.

**Real Estate Investment Trusts (REITs)** 

REITs are real estate investment trusts that lease, operate and finance commercial real estate. REITs are exempt from federal corporate income tax if they limit their operations and distribute most of their income. Such tax requirements limit a REIT's ability to respond to changes in the commercial real estate market.

**Warrants** 

Warrants give the Fund and the Underlying Fund the option to buy the issuer's equity securities at a specified price (the "exercise price") at a specified future date (the "expiration date"). The Fund and the Underlying Fund may buy the designated securities by paying the exercise price before the expiration date. Warrants may become worthless if the price of the stock does not rise above the exercise price by the expiration date. This increases the market risks of warrants as compared to the underlying security. Rights are the same as warrants, except companies typically issue rights to existing stockholders.

**Foreign Government Securities (A Type of Foreign Fixed-Income Security)** 

Foreign government securities generally consist of fixed-income securities supported by national, state or provincial governments or similar political subdivisions. Foreign government securities also include debt obligations of supranational entities, such as international organizations designed or supported by governmental entities to promote economic reconstruction or development, international banking institutions and related government agencies. Examples of these include, but are not limited to, the International Bank for Reconstruction and Development (the World Bank), the Asian Development Bank, the European Investment Bank and the Inter-American Development Bank.

Foreign government securities also include fixed-income securities of quasi-governmental agencies that are either issued by entities owned by a national, state or equivalent government or are obligations of a political unit that are not backed by the national government's full faith and credit. Further, foreign government securities include mortgage-related securities issued or guaranteed by national, state or provincial governmental instrumentalities, including quasi-governmental agencies.

**ADRs and Domestically Traded Securities of Foreign Issuers (Types of Foreign Equity Securities)** 

American Depositary Receipts, which are traded in United States markets, represent interests in underlying securities issued by a foreign company and not traded in the United States. ADRs provide a way to buy shares of foreign based companies in the United States rather than in overseas markets. ADRs are also traded in U.S. dollars, eliminating the need for foreign exchange transactions. The Fund may also invest in securities issued directly by foreign companies and traded in U.S. dollars in U.S. markets.

**Emerging Market Securities** 

As a non-principal strategy, the Fund may also invest in emerging market countries or developing countries. Developing countries may impose restrictions on a Fund's ability to repatriate investment income or capital. Even where there is no outright restriction on repatriation of investment income or capital, the mechanics of repatriation may affect certain aspects of the operations of the Fund. For example, funds may be withdrawn from the People's Republic of China only in U.S. or Hong Kong dollars and only at an exchange rate established by the government once each week. Furthermore, some of the currencies in emerging markets have experienced devaluations relative to the U.S. dollar, and major adjustments have been made periodically in certain of such currencies. Certain developing countries face serious exchange constraints.

**5**

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Governments of some developing countries exercise substantial influence over many aspects of the private sector. In some countries, the government owns or controls many companies, including the largest in the country. As such, government actions in the future could have a significant effect on economic conditions in developing countries in these regions, which could affect private sector companies, a portfolio and the value of its securities. Furthermore, certain developing countries are among the largest debtors to commercial banks and foreign governments. Trading in debt obligations issued or guaranteed by such governments or their agencies and instrumentalities involve a high degree of risk.

**Derivative Contracts** 

Derivative contracts are financial instruments that derive their value from underlying securities, commodities, currencies, indices or other assets or instruments, including other derivative contracts (each a "Reference Instrument" and collectively, "Reference Instruments"). The most common types of derivative contracts are swaps, futures and options, and the major asset classes include interest rates, equities, commodities and foreign exchange. Each party to a derivative contract may sometimes be referred to as a "counterparty." Some derivative contracts require payments relating to an actual, future trade involving the Reference Instrument. These types of derivatives are frequently referred to as "physically settled" derivatives. Other derivative contracts require payments relating to the income or returns from, or changes in the market value of, a Reference Instrument. These types of derivatives are known as "cash settled" derivatives, since they require cash payments in lieu of delivery of the Reference Instrument.

Many derivative contracts are traded on exchanges. In these circumstances, the relevant exchange sets all the terms of the contract except for the price. Parties to an exchange-traded derivative contract make payments through the exchange. Most exchanges require traders to maintain margin accounts through their brokers to cover their potential obligations to the exchange. Parties to the contract make or collect daily payments to the margin accounts to reflect losses (or gains), respectively, in the value of their contracts. This protects traders against a potential default by their counterparty. Trading contracts on an exchange also allows traders to hedge or mitigate certain risks or carry out more complex trading strategies by entering into offsetting contracts.

For example, the Fund could close out an open contract to buy an asset at a future date by entering into an offsetting contract to sell the same asset on the same date. If the offsetting sale price is more than the original purchase price, the Fund realizes a gain; if it is less, the Fund realizes a loss. Exchanges may limit the amount of open contracts permitted at any one time. Such limits may prevent the Fund from closing out a position. If this happens, the Fund will be required to keep the contract open (even if it is losing money on the contract), and to make any payments required under the contract (even if it has to sell portfolio securities at unfavorable prices to do so). Inability to close out a contract could also harm the Fund by preventing it from disposing of or trading any assets it has been using to secure its obligations under the contract.

The Fund may also trade derivative contracts over-the-counter (OTC), meaning off-exchange, in transactions negotiated directly between the Fund and an eligible counterparty, which may be a financial institution. OTC contracts do not necessarily have standard terms, so they may be less liquid and more difficult to close out than exchange-traded derivative contracts. In addition, OTC contracts with more specialized terms may be more difficult to value than exchange traded contracts, especially in times of financial stress.

The market for swaps and other OTC derivatives was largely unregulated prior to the enactment of federal legislation known as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"). Regulations enacted by the Commodity Futures Trading Commission (the "CFTC") under the Dodd-Frank Act require the Fund to clear certain types of swap contracts (including certain interest rate and credit default swaps) through a central clearinghouse known as a derivatives clearing organization ("DCO").

To clear a swap through a DCO, the Fund will submit the contract to, and post margin with, a futures commission merchant (FCM) that is a clearinghouse member. The Fund may enter into the swap with a counterparty other than the FCM and arrange for the contract to be transferred to the FCM for clearing or enter into the contract with the FCM itself. If the Fund must centrally clear a transaction, the CFTC's regulations also generally require that the swap be executed on a registered exchange (either a designated contract market (DCM) or swap execution facility (SEF)). Central clearing is presently required only for certain swaps; the CFTC is expected to impose a mandatory central clearing requirement for additional derivative instruments over time.

DCOs, DCMs, SEFs and FCMs are all subject to regulatory oversight by the CFTC. In addition, certain derivative market participants that act as market makers, and engage in a significant amount of "dealing" activity are as also required to register as swap dealers with the CFTC. Among other things, swap dealers are subject to minimum capital requirements and business conduct standards and must also post and collect initial and variation margin on uncleared swaps with certain of their counterparties. Because of this, if the Fund enters into uncleared swaps with any swap dealers, it may be subject to initial and variation margin requirements that could impact the Fund's ability to enter into swaps in the OTC market, including making transacting in uncleared swaps significantly more expensive.

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At this point in time, most of the Dodd-Frank Act has been fully implemented, though a small number of remaining rulemakings are unfinished or are subject to phase-in periods. Any future regulatory or legislative activity would not necessarily have a direct, immediate effect upon the Fund, though it is within the realm of possibility that, upon implementation of these measures or any future measures, they could potentially limit or completely restrict the ability of the Fund to use these instruments as a part of its investment strategy, increase the costs of using these instruments or make them less effective.

Depending on how the Fund uses derivative contracts and the relationships between the market value of a derivative contract and the Reference Instrument, derivative contracts may increase or decrease the Fund's exposure to the risks of the Reference Instrument and may also expose the Fund to liquidity and leverage risk. OTC contracts also expose the Fund to credit risk in the event that a counterparty defaults on the contract, although this risk may be mitigated by submitting the contract for clearing through a DCO, or certain other factors, such as collecting margin from the counterparty.

The Fund may invest in a derivative contract if it is permitted to own, invest in or otherwise have economic exposure to the Reference Instrument. The Fund is not required to own a Reference Instrument in order to buy or sell a derivative contract relating to that Reference Instrument. The Fund may trade in the following specific types and/or combinations of derivative contracts:

**Futures Contracts (A Type of Derivative Contract)** 

Futures contracts provide for the future sale by one party and purchase by another party of a specified amount of a Reference Instrument at a specified price, date and time. Entering into a contract to buy a Reference Instrument is commonly referred to as buying a contract or holding a long position in the asset. Entering into a contract to sell a Reference Instrument is commonly referred to as selling a contract or holding a short position in the Reference Instrument. Futures contracts are considered to be commodity contracts. The Fund's and Underlying Fund's Adviser have claimed an exclusion from the definition of the term "commodity pool operator" under the Commodity Exchange Act with respect to the Fund and Underlying Fund and, therefore, is not subject to registration or regulation with respect to the Fund and Underlying Fund. Futures contracts traded OTC are frequently referred to as forward contracts. The Fund and the Underlying Fund can buy or sell financial futures (such as interest rate futures, index futures and security futures), as well as, currency futures and currency forward contracts.

**Interest Rate Futures** 

An interest rate futures contract is an exchange-traded contract for which the Reference Instrument is an interest-bearing, fixed-income security or an inter-bank deposit. Two examples of common interest rate futures contracts are U.S. Treasury futures contracts and Eurodollar futures contracts. The Reference Instrument for a U.S. Treasury futures contract is a U.S. Treasury security. The Reference Instrument for a Eurodollar futures contract is the London Interbank Offered Rate (commonly referred to as LIBOR); Eurodollar futures contracts enable the purchaser to obtain a fixed rate for the lending of funds over a stated period of time and the seller to obtain a fixed rate for a borrowing of funds over that same period.

**Index Futures** 

An index futures contract is an exchange-traded contract to make or receive a payment based upon changes in the value of an index. An index is a statistical composite that measures changes in the value of designated Reference Instruments within the index.

**Security Futures** 

A security futures contract is an exchange-traded contract to purchase or sell in the future a specific quantity of a security (other than a Treasury security) or a narrow-based securities index at a certain price. Presently, the only available security futures contracts use shares of a single equity security as the Reference Instrument. However, it is possible that in the future security futures contracts will be developed that use a single fixed-income security as the Reference Instrument.

**Currency Futures and Currency Forward Contracts (Types of Futures Contracts)** 

A currency futures contract is an exchange-traded contract to buy or sell a particular currency at a specific price at some time in the future (commonly three months or more). A currency forward contract is not an exchange-traded contract and represents an obligation to purchase or sell a specific currency at a future date, at a price set at the time of the contract and for a period agreed upon by the parties which may be either a window of time or a fixed number of days from the date of the contract. Currency futures and forward contracts are highly volatile, with a relatively small price movement potentially resulting in substantial gains or losses to the Fund and the Underlying Fund. Additionally, the Fund and the Underlying Fund may lose money on currency futures and forward contracts if changes in currency rates do not occur as anticipated or if the Fund and the Underlying Fund's counterparty to the contract were to default.

**7**

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**Option Contracts (A Type of Derivative)** 

Option contracts (also called "options") are rights to buy or sell a Reference Instrument for a specified price (the "exercise price") during, or at the end of, a specified period. The seller (or "writer") of the option receives a payment, or premium, from the buyer, which the writer keeps regardless of whether the buyer uses (or exercises) the option. Options may be bought or sold on a wide variety of Reference Instruments. Options that are written on futures contracts will be subject to margin requirements similar to those applied to futures contracts.

The Fund and the Underlying Fund may buy and/or sell the following types of options:

**Call Options** 

A call option gives the holder (buyer) the right to buy the Reference Instrument from the seller (writer) of the option. The Fund and the Underlying Fund may use call options in the following ways:

◾ Buy call options on a Reference Instrument in anticipation of an increase in the value of the Reference Instrument; and

◾ Write call options on a Reference Instrument to generate income from premiums, and in anticipation of a decrease or only limited increase in the value of the Reference Instrument. If the Fund and the Underlying Fund write a call option on a Reference Instrument that it owns and that call option is exercised, the Fund and the Underlying Fund forego any possible profit from an increase in the market price of the Reference Instrument over the exercise price plus the premium received.

**Put Options** 

A put option gives the holder the right to sell the Reference Instrument to the writer of the option. The Fund and the Underlying Fund may use put options in the following ways:

◾ Buy put options on a Reference Instrument in anticipation of a decrease in the value of the Reference Instrument; and

◾ Write put options on a Reference Instrument to generate income from premiums, and in anticipation of an increase or only limited decrease in the value of the Reference Instrument. In writing puts, there is a risk that the Fund and the Underlying Fund may be required to take delivery of the Reference Instrument when its current market price is lower than the exercise price.

The Fund and the Underlying Fund may also buy or write options, as needed, to close out existing option positions.

Finally, the Fund and the Underlying Fund may enter into combinations of options contracts in an attempt to benefit from changes in the prices of those options contracts (without regard to changes in the value of the Reference Instrument).

**Swap Contracts (A Type of Derivative)** 

A swap contract (also known as a "swap") is a type of derivative contract in which two parties agree to pay each other (swap) the returns derived from Reference Instruments. Most swaps do not involve the delivery of the underlying assets by either party, and the parties might not own the Reference Instruments. The payments are usually made on a net basis so that, on any given day, the Fund and the Underlying Fund would receive (or pay) only the amount by which their payment under the contract is less than (or exceeds) the amount of the other party's payment. Swap agreements are sophisticated instruments that can take many different forms and are known by a variety of names. Common swap agreements that the Fund and the Underlying Fund may use include:

**Interest Rate Swaps** 

Interest rate swaps are contracts in which one party agrees to make regular payments equal to a fixed or floating interest rate times a stated principal amount (commonly referred to as a "notional principal amount") in return for payments equal to a different fixed or floating rate times the same principal amount, for a specific period. For example, a $10 million London Interbank Offered Rate (commonly referred to as LIBOR) swap would require one party to pay the equivalent of the London Interbank Offered Rate of interest (which fluctuates) on $10 million principal amount in exchange for the right to receive the equivalent of a stated fixed rate of interest on $10 million principal amount.

**Caps and Floors (A Type of Swap Contract)** 

Caps and Floors are contracts in which one party agrees to make payments only if an interest rate or index goes above ("Cap") or below ("Floor") a certain level in return for a fee from the other party.

**Total Return Swaps** 

A total return swap is an agreement between two parties whereby one party agrees to make payments of the total return from a Reference Instrument (or a basket of such instruments) during the specified period, in return for payments equal to a fixed or floating rate of interest or the total return from another Reference Instrument. Alternately, a total return swap can be structured so that one party will make payments to the other party if the value of a Reference Instrument increases, but receive payments from the other party if the value of that instrument decreases.

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**Credit Default Swaps** 

A credit default swap (CDS) is an agreement between two parties whereby one party (the "Protection Buyer") agrees to make payments over the term of the CDS to the other party (the "Protection Seller"), provided that no designated event of default, restructuring or other credit related event (each a "Credit Event") occurs with respect to Reference Instrument that is usually a particular bond, loan or the unsecured credit of an issuer, in general (the "Reference Obligation"). Many CDS are physically settled, which means that if a Credit Event occurs, the Protection Seller must pay the Protection Buyer the full notional value, or "par value," of the Reference Obligation in exchange for delivery by the Protection Buyer of the Reference Obligation or another similar obligation issued by the issuer of the Reference Obligation (the "Deliverable Obligation"). The Counterparties agree to the characteristics of the Deliverable Obligation at the time that they enter into the CDS. Alternately, a CDS can be "cash-settled," which means that upon the occurrence of a Credit Event, the Protection Buyer will receive a payment from the Protection Seller equal to the difference between the par amount of the Reference Obligation and its market value at the time of the Credit Event. The Fund and the Underlying Fund may be either the Protection Buyer or the Protection Seller in a CDS. If the Fund and the Underlying Fund are Protection Buyers and no Credit Event occurs, the Fund and the Underlying Fund will lose their entire investment in the CDS (i.e., an amount equal to the payments made to the Protection Seller over the term of the CDS). However, if a Credit Event occurs, the Fund and the Underlying Fund (as Protection Buyers) will deliver the Deliverable Obligation and receive a payment equal to the full notional value of the Reference Obligation, even though the Reference Obligation may have little or no value. If the Fund and the Underlying Fund are the Protection Sellers and no Credit Event occurs, the Fund and the Underlying Fund will receive a fixed rate of income throughout the term of the CDS. However, if a Credit Event occurs, the Fund and the Underlying Fund (as Protection Sellers) will pay the Protection Buyer the full notional value of the Reference Obligation and receive the Deliverable Obligation from the Protection Buyer. A CDS may involve greater risks than if the Fund and the Underlying Fund invested directly in the Reference Obligation. For example, a CDS may increase credit risk since the Fund and the Underlying Fund have exposure to both the issuer of the Reference Obligation and the Counterparty to the CDS.

**Currency Swaps** 

Currency swaps are contracts which provide for interest payments in different currencies. The parties might agree to exchange the notional principal amounts of the currencies as well (commonly called a "foreign exchange swap").

**Other Investments, Transactions, Techniques** 

**Repurchase Agreements** 

Repurchase agreements are transactions in which the Fund and the Underlying Fund buy a security from a dealer or bank and agree to sell the security back at a mutually agreed upon time and price. The repurchase price exceeds the sale price, reflecting the Fund and the Underlying Fund's return on the transaction. This return is unrelated to the interest rate on the underlying security. The Fund and the Underlying Fund will enter into repurchase agreements only with banks and other recognized financial institutions, such as securities dealers, deemed creditworthy by the Adviser.

The Fund and the Underlying Fund's custodian or subcustodian will take possession of the securities subject to repurchase agreements. The Adviser or subcustodian will monitor the value of the underlying security each day to ensure that the value of the security always equals or exceeds the repurchase price.

Repurchase agreements are subject to credit risks.

**Reverse Repurchase Agreements** 

Reverse repurchase agreements (which are considered a type of special transaction for asset segregation or asset coverage purposes) are repurchase agreements in which the Fund and the Underlying Fund are the sellers (rather than the buyers) of the securities, and agree to repurchase them at an agreed upon time and price. A reverse repurchase agreement may be viewed as a type of borrowing by the Fund and the Underlying Fund. Reverse repurchase agreements are subject to credit risks. In addition, reverse repurchase agreements create leverage risks because the Fund and the Underlying Fund must repurchase the underlying security at a higher price, regardless of the market value of the security at the time of repurchase.

**Delayed Delivery Transactions** 

Delayed delivery transactions, including when issued transactions, are arrangements in which the Fund and the Underlying Fund buy securities for a set price, with payment and delivery of the securities scheduled for a future time. During the period between purchase and settlement, no payment is made by the Fund and the Underlying Fund to the issuer and no interest accrues to the Fund and the Underlying Fund. The Fund and the Underlying Fund record the transaction when they agree to buy the

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securities and reflect their value in determining the price of their shares. Settlement dates may be a month or more after entering into these transactions so that the market values of the securities bought may vary from the purchase prices. Therefore, delayed delivery transactions create interest rate risks for the Fund and the Underlying Fund. Delayed delivery transactions involve credit risks in the event of a counterparty default. These transactions also create leverage risks.

**Securities Lending** 

The Fund may lend portfolio securities to borrowers that the Adviser deems creditworthy. In return, the Fund receives cash or liquid securities from the borrower as collateral. The borrower must furnish additional collateral if the market value of the loaned securities increases. Also, the borrower must pay the Fund the equivalent of any dividends or interest received on the loaned securities.

The Fund will reinvest cash collateral in securities that qualify as an acceptable investment for the Fund. However, the Fund must pay interest to the borrower for the use of cash collateral. An acceptable investment into which the Fund may reinvest cash collateral includes, among other acceptable investments, securities of affiliated money market funds (including affiliated institutional prime money market funds with a "floating" net asset value that can impose redemption fees and liquidity gates, impose certain operational impediments to investing cash collateral, and, if net asset value decreases, result in the Fund having to cover the decrease in the value of the cash collateral).

Loans are subject to termination at the option of the Fund or the borrower. The Fund will not have the right to vote on securities while they are on loan. However, the Fund will attempt to terminate a loan in an effort to reacquire the securities in time to vote on matters that are deemed to be material by the Adviser. There can be no assurance that the Fund will have sufficient notice of such matters to be able to terminate the loan in time to vote thereon. The Fund may pay administrative and custodial fees in connection with a loan and may pay a negotiated portion of the interest earned on the cash collateral to a securities lending agent or broker.

Securities lending activities are subject to interest rate risks and credit risks.

**Hedging** 

Hedging transactions are intended to reduce specific risks. For example, to protect the Fund against circumstances that would normally cause the Fund's portfolio securities to decline in value, the Fund may buy or sell a derivative contract that would normally increase in value under the same circumstances. The Fund may also attempt to hedge by using combinations of different derivative contracts, or derivative contracts and securities. The Fund's ability to hedge may be limited by the costs of the derivative contracts. The Fund may attempt to lower the cost of hedging by entering into transactions that provide only limited protection, including transactions that: (1) hedge only a portion of its portfolio; (2) use derivative contracts that cover a narrow range of circumstances; or (3) involve the sale of derivative contracts with different terms. Consequently, hedging transactions will not eliminate risk, even if they work as intended. In addition, hedging strategies are not always successful, and could result in increased expenses and losses to the Fund.

**Hybrid Instruments** 

Hybrid instruments combine elements of two different kinds of securities or financial instruments (such as a derivative contract). Frequently, the value of a hybrid instrument is determined by reference to changes in the value of a Reference Instrument (that is a designated security, commodity, currency, index or other asset or instrument including a derivative contract). Hybrid instruments can take on many forms including, but not limited to, the following forms. First, a common form of a hybrid instrument combines elements of a derivative contract with those of another security (typically a fixed-income security). In this case all or a portion of the interest or principal payable on a hybrid security is determined by reference to changes in the price of a Reference Instrument. Second, a hybrid instrument may also combine elements of a fixed-income security and an equity security. Third, hybrid instruments may include convertible securities with conversion terms related to a Reference Instrument.

Depending on the type and terms of the hybrid instrument, its risks may reflect a combination of the risks of investing in the Reference Instrument with the risks of investing in other securities, currencies and derivative contracts. Thus, an investment in a hybrid instrument may entail significant risks in addition to those associated with traditional securities or the Reference Instrument. Hybrid instruments are also potentially more volatile than traditional securities or the Reference Instrument. Moreover, depending on the structure of the particular hybrid, it may expose the Fund and the Underlying Fund to leverage risks or carry liquidity risks.

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**Credit Linked Note (A Type of Hybrid Instrument)** 

A credit linked note (CLN) is a type of hybrid instrument in which a special purpose entity issues a structured note (the "Note Issuer") with respect to which the Reference Instrument is a single bond, a portfolio of bonds, or the unsecured credit of an issuer, in general (each a "Reference Credit"). The purchaser of the CLN (the "Note Purchaser") invests a par amount and receives a payment during the term of the CLN that equals a fixed or floating rate of interest equivalent to a high-rated, funded asset (such as a bank certificate of deposit), plus an additional premium that relates to taking on the credit risk of the Reference Credit. Upon maturity of the CLN, the Note Purchaser will receive a payment equal to: (i) the original par amount paid to the Note Issuer, if there is no occurrence of a designated event of default, restructuring or other credit event (each a "Credit Event"), with respect to the issuer of the Reference Credit; or (ii) the market value of the Reference Credit, if a Credit Event has occurred. Depending upon the terms of the CLN, it is also possible that the Note Purchaser may be required to take physical delivery of the Reference Credit in the event of Credit Event. Most credit linked notes use a corporate bond (or a portfolio of corporate bonds) as the Reference Credit. However, almost any type of fixed-income security (including foreign government securities), index or derivative contract (such as a credit default swap) can be used as the Reference Credit.

**Equity Linked Note (A Type of Hybrid Instrument)** 

An equity linked note (ELN) is a type of hybrid instrument that provides the noteholder with exposure to a single equity security, a basket of equity securities or an equity index (the "Reference Equity Instrument"). Typically, an ELN pays interest at agreed rates over a specified time period and, at maturity, either converts into shares of a Reference Equity Instrument or returns a payment to the noteholder based on the change in value of a Reference Equity Instrument.

**Derivatives Regulation and Asset Coverage** 

The regulation of the U.S. and non-U.S. derivatives markets has undergone substantial change in recent years and such change may continue. In addition, effective August 19, 2022, Rule 18f-4 (the "Derivatives Rule") under the Investment Company Act of 1940, as amended (the "1940 Act"), replaced the asset segregation framework previously used by funds to comply with limitations on leverage imposed by the 1940 Act. The Derivatives Rule generally mandates that a fund either limit derivatives exposure to 10% or less of its net assets, or in the alternative implement: (i) limits on leverage calculated based value-at-risk (VAR); and (ii) a written derivatives risk management program (DRMP) administered by a derivatives risk manager appointed by the Fund's Board, including a majority of the independent Board members, that is periodically reviewed by the Board.

As the Fund's derivative exposure, if any, is 10% or less of its net assets, excluding certain currency and interest rate hedging transactions, the Fund is classified as a limited derivatives user under the Derivatives Rule and will not be subject to the full requirements of the Derivatives Rule as noted above, including VAR testing and stress testing, and certain Board reporting requirements. However, the Fund is still required to implement written compliance policies and procedures reasonably designed to manage its derivatives risks and monitor its derivatives exposure daily.

In accordance with the requirements of Section 18 of the 1940 Act, any borrowings by the Fund will be made only to the extent the value of its assets, less its liabilities other than borrowings, is equal to at least 300% of all of its borrowings (the "300% Asset Coverage Ratio"). The Derivatives Rule permits the Fund to enter into reverse repurchase agreements and similar financing transactions, notwithstanding limitations on the issuance of senior securities under Section 18 of the 1940 Act, provided that the Fund either (i) treats these transactions as derivatives transactions under the Derivatives Rule, or (ii) ensures that the 300% Asset Coverage Ratio with respect to such transactions and any other borrowings in the aggregate. While reverse repurchase agreements or similar financing transactions aggregated with other indebtedness do not need to be included in the calculation of whether a fund satisfies the Limited Derivatives Users exception, for funds subject to the VAR testing requirement, reverse repurchase agreements and similar financing transactions must be included for purposes of such testing whether treated as derivatives transactions or not. See "Borrowing Money and Issuing Senior Securities" and "Additional Information" below.

**INTER-FUND BORROWING AND THIRD-PARTY LENDING ARRANGEMENTS** 

**Inter-Fund Borrowing** 

The Securities and Exchange Commission (SEC) has granted an exemption that permits the Fund and all other funds ("Federated Hermes funds") advised by subsidiaries of Federated Hermes, Inc. ("Federated Hermes," formerly, Federated Investors, Inc.) to lend and borrow money for certain temporary purposes directly to and from other Federated Hermes funds. Participation in this inter-fund lending program is voluntary for both borrowing and lending Federated Hermes funds, and an inter-fund loan is only made if it benefits each participating Federated Hermes fund. Federated Hermes administers the program according to procedures approved by the Fund's Board, and the Board monitors the operation of the program. Any inter-fund loan must comply with certain conditions set out in the exemption, which are designed to assure fairness and protect all participating Federated Hermes funds.

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For example, inter-fund lending is permitted only: (a) to meet shareholder redemption requests; (b) to meet commitments arising from "failed" trades; and (c) for other temporary purposes. All inter-fund loans must be repaid in seven days or less. The Fund's participation in this program must be consistent with its investment policies and limitations, and must meet certain percentage tests. Inter-fund loans may be made only when the rate of interest to be charged is more attractive to the lending Federated Hermes fund than market-competitive rates on overnight repurchase agreements ("Repo Rate") *and* more attractive to the borrowing Federated Hermes fund than the rate of interest that would be charged by an unaffiliated bank for short-term borrowings ("Bank Loan Rate"), as determined by the Board. The interest rate imposed on inter-fund loans is the average of the Repo Rate and the Bank Loan Rate.

**Third-Party 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. 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 1940 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 the date of this Statement of Additional Information, there were no outstanding loans. During the most recently ended fiscal year, the Fund did not utilize the LOC.

**LIQUIDITY RISK MANAGEMENT PROGRAM** 

The Fund has adopted and implemented a written liquidity risk management program (LRMP) and related procedures to assess and manage the liquidity risk of the Fund in accordance with Section 22(e) of the 1940 Act and Rule 22e-4 thereunder. The Board has designated the Adviser, together with Federated Hermes, Inc.'s ("Federated Hermes," formerly Federated Investors, Inc.) other affiliated registered investment advisory subsidiaries that serve as investment advisers to other Federated Hermes funds, to collectively serve as the administrator of the LRMP and the related procedures (the "Administrator"). Rule 22e-4 defines "liquidity risk" as the risk that the Fund will be unable to meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors' interests in the Fund. As a part of the LRMP, the Administrator is responsible for classifying the liquidity of the Fund's portfolio investments in accordance with Rule 22e-4. As part of the LRMP, the Administrator is also responsible for assessing, managing and periodically reviewing the Fund's liquidity risk, for making periodic reports to the Board and the SEC regarding the liquidity of the Fund's investments, and for notifying the Board and the SEC of certain liquidity events specified in Rule 22e-4. The liquidity of the Fund's portfolio investments is determined based on relevant market, trading and investment-specific considerations under the LRMP.

Investment Risks

There are many factors which may affect an investment in the Fund and the Underlying Fund. The Fund will be exposed to the risks of the Underlying Fund. The Fund will be directly subject to these risks to the extent that the Fund invests in securities directly. The Fund and Underlying Fund's principal risks are described in the Fund's Prospectus. Additional risk factors are outlined below.

**ASSET-BACKED SECURITIES (ABS) RISK** 

The value of asset-backed securities (ABS) may be affected by certain factors such as interest rate risk, the availability of information concerning the pool of underlying assets and its structure, the creditworthiness of the servicing agent for the pool or the originator of the underlying assets and the ability of the servicing agent to service the underlying collateral. Under certain market conditions, ABS may be less liquid and may be difficult to value. Movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain types of ABS. Unscheduled prepayments of ABS may result in a loss of income if the proceeds are invested in lower-yielding securities. Conversely, in a rising interest rate environment, a declining prepayment rate will extend the average life of many ABS, which increases the risk of depreciation due to future increases in market interest rates. ABS can also be subject to the risk of default on the underlying assets.

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**Loan Liquidity Risk** 

Loans generally are subject to legal or contractual restrictions on resale. The liquidity of loans, including the volume and frequency of secondary market trading in such loans, varies significantly over time and among individual loans. For example, if the credit quality of a loan unexpectedly declines significantly, secondary market trading in that loan can also decline for a period of time. During periods of infrequent trading, valuing a loan can be more difficult and buying and selling a loan at an acceptable price can be more difficult and delayed. Difficulty in selling a loan can result in a loss.

Loans may not be readily marketable and may be subject to restrictions on resale. In some cases, negotiations involved in disposing of loans may require weeks to complete. Additionally, collateral on loan instruments may consist of assets that may not be readily liquidated, and there is no assurance that the liquidation of such assets will satisfy a borrower's obligations under the loan.

A majority of the Fund's assets are likely to be invested in assets that are considerably less liquid than debt instruments traded on national exchanges. Market quotations for such assets may be volatile and/or subject to large spreads between bid and ask prices.

**Agent Insolvency Risk** 

In a syndicated loan, the agent bank is the bank that undertakes the bulk of the administrative duties involved in the day-to-day administration of the loan. In the event of the insolvency of an agent bank, a loan could be subject to settlement risk as well as the risk of interruptions in the administrative duties performed in the day-to-day administration of the loan (such as processing LIBOR calculations, processing draws, etc.).

**Loan Prepayment Risk** 

During periods of declining interest rates or for other purposes, borrowers may exercise their option to prepay principal earlier than scheduled which may force the Fund to reinvest in lower-yielding debt instruments.

**Credit Enhancement Risk** 

The securities in which the Fund invests may be subject to credit enhancement (for example, guarantees, letters of credit or bond insurance). Credit enhancement is designed to help assure timely payment of the security; it does not protect the Fund against losses caused by declines in a security's value due to changes in market conditions. Securities subject to credit enhancement generally would be assigned a lower credit rating if the rating were based primarily on the credit quality of the issuer without regard to the credit enhancement. If the credit quality of the credit enhancement provider (for example, a bank or bond insurer) is downgraded, the rating on a security credit enhanced by such credit enhancement provider also may be downgraded.

A single enhancement provider may provide credit enhancement to more than one of the Fund's investments. Having multiple securities credit enhanced by the same enhancement provider will increase the adverse effects on the Fund that are likely to result from a downgrading of, or a default by, such an enhancement provider. Adverse developments in the banking or bond insurance industries also may negatively affect the Fund, as the Fund may invest in securities credit enhanced by banks or by bond insurers without limit. Bond insurers that provide credit enhancement for large segments of the fixed-income markets, including the municipal bond market, may be more susceptible to being downgraded or defaulting during recessions or similar periods of economic stress.

**Risk of Investing in ADRs and Domestically Traded Securities of Foreign Issuers** 

Because the Fund may invest in American Depositary Receipts (ADRs) and other domestically traded securities of foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards, than would otherwise be the case. Foreign companies may not provide information as frequently or to as great an extent as companies in the United States. Foreign companies may also receive less coverage than U.S. companies by market analysts and the financial press. In addition, foreign companies may lack uniform accounting, auditing and financial reporting standards or regulatory requirements comparable to those applicable to U.S. companies. These factors may prevent the Fund and its Adviser from obtaining information concerning foreign companies that is as frequent, extensive and reliable as the information available concerning companies in the United States.

**Stock Market Risk** 

The value of equity securities in the Fund's and the Underlying Fund's portfolio will rise and fall. These fluctuations could be a sustained trend or a drastic movement. The Fund's and the Underlying Fund's portfolio will reflect changes in prices of individual portfolio stocks or general changes in stock valuations. Consequently, the Fund's and the Underlying Fund's Share price may decline.

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The Adviser attempts to manage market risk by limiting the amount the Fund invests in each company's equity securities. However, diversification will not protect the Fund against widespread or prolonged declines in the stock market.

Information publicly available about a company, whether from the company's financial statements or other disclosures or from third parties, or information available to some but not all market participants, can affect the price of a company's shares in the market. The price of a company's shares depends significantly on the information publicly available about the company. The restatement of a company's financial statements or corrections to other information regarding a company or its business may adversely affect the price of its shares, as would allegations of fraud or other misconduct by the company's management. The Fund and the Underlying Fund may also be disadvantaged if some market participants have access to material information not readily available to other market participants, including the Fund and the Underlying Fund.

**European Union and eurozone Related risk** 

A number of countries in the European Union (EU), including certain countries within the EU that have adopted the euro (Eurozone), have experienced, and may continue to experience, severe economic and financial difficulties. Additional countries within the EU may also fall subject to such difficulties. These events could negatively affect the value and liquidity of the Fund's investments in euro-denominated securities and derivatives contracts, securities of issuers located in the EU or with significant exposure to EU issuers or countries. If the euro is dissolved entirely, the legal and contractual consequences for holders of euro-denominated obligations and derivative contracts would be determined by laws in effect at such time. Such investments may continue to be held, or purchased, to the extent consistent with the Fund's investment objective(s) and permitted under applicable law. These potential developments, or market perceptions concerning these and related issues, could adversely affect the value of the Shares.

Certain countries in the EU have had to accept assistance from supra-governmental agencies such as the International Monetary Fund, the European Stability Mechanism (the "ESM") or other supra-governmental agencies. The European Central Bank has also been intervening to purchase Eurozone debt in an attempt to stabilize markets and reduce borrowing costs. There can be no assurance that these agencies will continue to intervene or provide further assistance and markets may react adversely to any expected reduction in the financial support provided by these agencies. Responses to the financial problems by European governments, central banks and others including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences.

In addition, one or more countries may withdraw from the EU, and one or more countries within the Eurozone may abandon the euro. The impact of these actions, especially if they occur in a disorderly fashion, could be significant and far-reaching. On January 31, 2020, the United Kingdom (UK) left the EU, commonly referred to as "Brexit," and there commenced a transition period during which the EU and UK negotiated and agreed on the nature of their future relationship, with such agreements becoming effective on December 31, 2020. There is significant market uncertainty regarding Brexit's ramifications, and the range and potential implications of possible political, regulatory, economic and market outcomes are difficult to predict. This long-term uncertainty may affect other countries in the EU and elsewhere and may cause volatility within the EU, triggering prolonged economic downturns in certain countries within the EU. In addition, Brexit may create additional and substantial economic stresses for the UK, including a contraction of the UK economy and price volatility in UK stocks, decreased trade, capital outflows, devaluation of the British pound, wider corporate bond spreads due to uncertainty and declines in business and consumer spending as well as foreign direct investment. Brexit may also adversely affect UK-based financial firms, including certain subadvisers to the Federated Hermes Funds, that have counterparties in the EU or participate in market infrastructure (trading venues, clearing houses, settlement facilities) based in the EU. These events and the resulting market volatility may have an adverse effect on the performance of the Fund.

**Risk of Investing in Derivative Contracts and Hybrid Instruments** 

The Fund's and the Underlying Fund's exposure to derivative contracts and hybrid instruments (either directly or through its investment in another investment company) involve risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. First, changes in the value of the derivative contracts and hybrid instruments in which the Fund and the Underlying Fund invest may not be correlated with changes in the value of the underlying Reference Instruments or, if they are correlated, may move in the opposite direction than originally anticipated. Second, while some strategies involving derivatives may reduce the risk of loss, they may also reduce potential gains or, in some cases, result in losses by offsetting favorable price movements in portfolio holdings. Third, there is a risk that derivative contracts and hybrid instruments may be erroneously priced or improperly valued and, as a result, the Fund and the Underlying Fund may need to make increased cash payments to the counterparty. Fourth, exposure to derivative contracts and hybrid instruments may have tax consequences to the Fund and the Underlying Fund and their shareholders. For example, derivative contracts and hybrid instruments may cause the Fund and the Underlying Fund to realize increased ordinary income or short-term capital gains (which are treated as ordinary income for federal income tax purposes) and, as a result, may increase taxable distributions to

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shareholders. In addition, under certain circumstances, certain derivative contracts and hybrid instruments may cause the Fund and the Underlying Fund to: (a) incur an excise tax on a portion of the income related to those contracts and instruments; and/or (b) reclassify, as a return of capital, some or all of the distributions previously made to shareholders during the fiscal year as dividend income. Fifth, a common provision in OTC derivative contracts permits the counterparty to terminate any such contract between it and the Fund and the Underlying Fund, if the value of the Fund's and the Underlying Fund's total net assets decline below a specified level over a given time period. Factors that may contribute to such a decline (which usually must be substantial) include significant shareholder redemptions and/or a marked decrease in the market value of the Fund and the Underlying Fund's investments. Any such termination of the Fund's and the Underlying Fund's OTC derivative contracts may adversely affect the Fund and the Underlying Fund (for example, by increasing losses and/or costs, and/or preventing the Fund and the Underlying Fund from fully implementing their investment strategies). Sixth, the Fund and Underlying Fund may use a derivative contract to benefit from a decline in the value of a Reference Instrument. If the value of the Reference Instrument declines during the term of the contract, the Fund and Underlying Fund make a profit on the difference (less any payments the Fund and Underlying Fund are required to pay under the terms of the contract). Any such strategy involves risk. There is no assurance that the Reference Instrument will decline in value during the term of the contract and make a profit for the Fund and Underlying Fund. The Reference Instrument may instead appreciate in value creating a loss for the Fund and Underlying Fund. Seventh, a default or failure by a CCP or an FCM (also sometimes called a "futures broker"), or the failure of a contract to be transferred from an Executing Dealer to the FCM for clearing, may expose the Fund and Underlying Fund to losses, increase its costs, or prevent the Fund from entering or exiting derivative positions, accessing margin or fully implementing its investment strategies. The central clearing of a derivative and trading of a contract over a SEF could reduce the liquidity in, or increase costs of entering into or holding, any contracts. Finally, derivative contracts and hybrid instruments may also involve other risks described herein or in the Fund's and the Underlying Fund's Prospectus or Private Operating Memorandum, such as stock market, interest rate, credit, liquidity and leverage risks.

**Risk of Investing in Emerging Market Countries** 

Securities issued or traded in emerging markets generally entail greater risks than securities issued or traded in developed markets. For example, their prices may be significantly more volatile than prices in developed countries. Emerging market economies may also experience more severe downturns (with corresponding currency devaluations) than developed economies.

Emerging market countries may have relatively unstable governments and may present the risk of nationalization of businesses, expropriation, confiscatory taxation or, in certain instances, reversion to closed market, centrally planned economies.

**Risk Associated with the Investment Activities of Other Accounts** 

Investment decisions for the Fund are made independently from those of other accounts managed by the Adviser and accounts managed by affiliates of the Adviser. Therefore, it is possible that investment-related actions taken by such other accounts could adversely impact the Fund with respect to, for example, the value of Fund portfolio holdings, and/or prices paid to or received by the Fund on its portfolio transactions, and/or the Fund's ability to obtain or dispose of portfolio securities. Related considerations are discussed elsewhere in this SAI under "Brokerage Transactions and Investment Allocation."

**COLLATERALIZED LOAN OBLIGATIONS RISK** 

Collateralized loan obligations (CLOs) bear many of the same risks as other forms of asset-backed securities, including interest rate risk and issuer credit risk. As they are backed solely by pools of loans, CLOs also bear similar risks to investing in loans directly. CLOs issue classes or "tranches" that vary in risk and yield. The risks of an investment in a CLO depend largely on the type of collateral securities and the class of the CLO in which the Fund invests. CLOs may experience substantial losses attributable to loan defaults. Losses caused by defaults on underlying assets are borne first by the holders of subordinate tranches. The Fund's investment in CLOs may decrease in market value if the CLO experiences loan defaults or credit impairment, the disappearance of a subordinate tranche, or due to market anticipation of defaults and investor aversion to CLO securities as a class.

**REAL ESTATE INVESTMENT TRUST RISK** 

Real estate investment trusts (REITs), including foreign REITs and REIT-like entities, are subject to risks associated with the ownership of real estate. Some REITs experience market risk due to investment in a limited number of properties, in a narrow geographic area, or in a single property type, which increases the risk that such REIT could be unfavorably affected by the poor performance of a single investment or investment type. These companies are also sensitive to factors such as changes in real estate values and property taxes, interest rates, cash flow of underlying real estate assets, supply and demand and the management skill and creditworthiness of the issuer. Borrowers could default on or sell investments that a REIT holds, which could reduce the cash flow needed to make distributions to investors. In addition, REITs may also be affected by tax and

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regulatory requirements impacting the REITs' ability to qualify for preferential tax treatments or exemptions. REITs require specialized management and pay management expenses. REITs also are subject to physical risks to real property, including weather, natural disasters, terrorist attacks, war, or other events that destroy real property. Foreign REITs and REIT-like entities can also be subject to currency risk, emerging market risk, limited public information, illiquid trading and the impact of local laws.

REITs include equity REITs and mortgage REITs. Equity REITs may be affected by changes in the value of the underlying property owned by the trusts, while mortgage REITs may be affected by the quality of any credit extended. Further, equity and mortgage REITs are dependent upon management skills and generally may not be diversified. Equity and mortgage REITs are also subject to heavy cash flow dependency, defaults by borrowers and self-liquidations. In addition, equity and mortgage REITs could possibly fail to qualify for tax-free pass-through of income under applicable tax laws or to maintain their exemptions from registration under the Investment Company Act of 1940, as amended. The above factors may also adversely affect a borrower's or a lessee's ability to meet its obligations to the REIT. In the event of a default by a borrower or lessee, the REIT may experience delays in enforcing its rights as a mortgagee or lessor and may incur substantial costs associated with protecting its investments. In addition, even many of the larger REITs in the industry tend to be small to medium-sized companies in relation to the equity markets as a whole.

Effective for taxable years beginning after December 31, 2017, the recently enacted Tax Cuts and Jobs Act generally allows individuals and certain non-corporate entities, such as partnerships, a deduction for 20% of qualified REIT dividends. Related regulations allow a regulated investment company to pass the character of its qualified REIT dividends through to its shareholders provided certain holding period requirements are met.

**LARGE SHAREHOLDER RISK** 

A significant percentage of the Fund's shares may be owned or controlled by a large shareholder, such as other funds or accounts, including those of which the Adviser or an affiliate of the Adviser may have investment discretion. Accordingly, the Fund can be subject to the potential for large scale inflows and outflows as a result of purchases and redemptions made by significant shareholders. These inflows and outflows could be significant and, if frequently occurring, could negatively affect the Fund's net asset value and performance and could cause the Fund to buy or sell securities at inopportune times in order to meet purchase or redemption requests. Investments in the Fund by other investment companies also can create conflicts of interests for the Adviser to the Fund and the investment adviser to the acquiring fund. For example, a conflict of interest can arise due to the possibility that the investment adviser to the acquiring fund could make a decision to redeem the acquiring fund's investment in the Fund. In the case of an investment by an affiliated fund, a conflict of interest can arise if, because of the acquiring fund's investment in the Fund, the Fund is able to garner more assets from third-party investors, thereby growing the Fund and increasing the management fees received by the Adviser, which could also be the investment adviser to the acquiring fund.

**Risk of Investing in loans** 

In addition to the risks generally associated with debt instruments, such as credit, market, interest rate, liquidity and derivatives risks, bank loans are also subject to the risk that the value of the collateral securing a loan may decline, be insufficient to meet the obligations of the borrower or be difficult to liquidate. The Fund's access to the collateral may be limited by bankruptcy, other insolvency laws or by the type of loan the Fund has purchased. For example, if the Fund purchases a participation instead of an assignment, it would not have direct access to collateral of the borrower. As a result, a floating rate loan may not be fully collateralized and can decline significantly in value. Additionally, collateral on loan instruments may consist of assets that may not be readily liquidated, and there is no assurance that the liquidation of such assets will satisfy a borrower's obligations under the instrument. Loans generally are subject to legal or contractual restrictions on resale.

Loans and other forms of indebtedness may be structured such that they are not securities under securities laws. As such, it is unclear whether loans and other forms of direct indebtedness offer securities law protections, such as those against fraud and misrepresentation. In the absence of definitive regulatory guidance, while there can be no assurance that fraud or misrepresentation will not occur with respect to the loans and other investments in which the Fund invests, the Fund relies on the Adviser's research in an attempt to seek to avoid situations where fraud or misrepresentation could adversely affect the Fund.

**LIBOR Risk** 

Certain derivatives or debt securities, or other financial instruments in which the Fund may invest, utilize the London Interbank Offered Rate (LIBOR) as the reference or benchmark rate for interest rate calculations.

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LIBOR is a measure of the average interest rate at which major global banks can borrow from one another. LIBOR has historically been quoted in multiple currencies and tenors using data reported by a panel of private-sector banks. Following allegations of rate manipulation in 2012 and concerns regarding its thin liquidity, the use of LIBOR came under increasing pressure, and in July 2017, the UK Financial Conduct Authority, which regulates LIBOR, announced that it will stop encouraging banks to provide the quotations needed to sustain LIBOR. The ICE Benchmark Administration Limited, the administrator of LIBOR, ceased publishing most LIBOR tenors, including some USD LIBOR tenors, on December 31, 2021, and will cease publishing the remaining and most liquid USD LIBOR tenors no later than June 30, 2023. Regulators have encouraged the development of and transition to the use of alternative reference or benchmark rates.

While the transition away from LIBOR has become increasingly well-defined in advance of the anticipated discontinuation of LIBOR, the impact on certain debt securities, derivatives and other financial instruments remains uncertain. Further, the process for amending existing contracts or instruments to transition away from LIBOR remains unclear in the absence of global consensus.

It is expected that market participants will amend financial instruments referencing LIBOR to include fallback provisions and other measures that contemplate the discontinuation of LIBOR or other similar market disruption events. However, neither the effect of the transition process nor the viability of such measures is known. To facilitate the transition of legacy derivatives contracts referencing LIBOR, the International Swaps and Derivatives Association, Inc. launched a protocol to incorporate fallback provisions. However, there are obstacles to converting certain longer-term securities and transactions to a new benchmark or benchmarks. For example, certain proposed replacement rates to LIBOR, such as the Secured Overnight Financing Rate (SOFR), which is a broad measure of secured overnight U.S. Treasury repo rates, or the Bloomberg Short-Term Bank Yield Index (BSBY), a proprietary series of credit sensitive reference rates that incorporate bank credit spreads, are materially different from LIBOR, and changes in the applicable spread for financial instruments transitioning away from LIBOR will need to be made to accommodate the differences. In addition, regulators in foreign jurisdictions have proposed alternative replacement rates. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition to alternative rates may be exacerbated if an orderly transition to an alternative reference rate is not completed in a timely manner.

The effectiveness of multiple alternative reference rates as opposed to one primary reference rate has not been determined. The effectiveness of alternative reference rates used in new or existing financial instruments and products has also not yet been determined. As market participants transition away from LIBOR, LIBOR's usefulness may deteriorate, and these effects could be experienced until the permanent cessation of the majority of USD LIBOR rates in 2023. The transition process may lead to increased volatility and illiquidity in markets that currently rely on LIBOR to determine interest rates. LIBOR's deterioration may adversely affect the liquidity and/or market value of securities that use LIBOR as a benchmark interest rate, including securities and other financial instruments held by the Fund. Further, the utilization of an alternative reference rate, or the transition process to an alternative reference rate, may adversely affect the Fund's investment performance.

**CYBERSECURITY AND OPERATIONAL RISK** 

Like other funds and business enterprises, Federated Hermes' business relies on the security and reliability of information and communications technology, systems and networks. Federated Hermes uses digital technology, including, for example, networked systems, email and the Internet, as well as mobile devices and "cloud"-based service offerings, to conduct business operations and engage clients, customers, employees, products, accounts, shareholders and relevant service providers, among others. Federated Hermes, as well as its funds and certain service providers, also generate, compile and process information for purposes of preparing and making filings or reports to governmental agencies, or providing reports or statements to customers, and a cybersecurity attack or incident that impacts that information, or the generation and filing processes, can prevent required regulatory filings and reports from being made, or reports or statements from being delivered, or cause the inadvertent release of confidential information (possibly resulting in the violation of applicable privacy laws). The use of the Internet and other electronic media and technology exposes the Fund, the Fund's shareholders, and the Fund's service providers, and their respective operations, to potential risks from cybersecurity attacks or incidents (collectively, "cyber-events"). The work-from-home environment necessitated by the novel coronavirus ("COVID-19") pandemic has increased the risk of cyber incidents given the increase in cyber attack surface stemming from the use of personal devices and non-office or personal technology.

Cyber-events can result from intentional (or deliberate) attacks or unintentional events by insiders (e.g., employees) or third parties, including cybercriminals, competitors, nation-states and "hacktivists," among others. Cyber-events can include, for example, phishing, credential harvesting or use of stolen access credentials, unauthorized access to systems, networks or devices (such as, for example, through "hacking" activity), structured query language attacks, infection from or spread of malware, ransomware, computer viruses or other malicious software code, corruption of data, exfiltration of data to malicious sites, the dark web or other locations or threat actors, and attacks (including, but not limited to, denial of service attacks on websites) which shut down, disable, slow, impair or otherwise disrupt operations, business processes, technology, connectivity or website

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or Internet access, functionality or performance. Like other funds and business enterprises, the Fund and its service providers have experienced, and will continue to experience, cyber-events on a daily basis. In addition to intentional cyber-events, unintentional cyber-events can occur, such as, for example, the inadvertent release of confidential information. Cyber-events can also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on the service providers' systems or websites rendering them unavailable to intended users or via "ransomware" that renders the systems inoperable until appropriate actions are taken. To date, cyber-events have not had a material adverse effect on the Fund's business operations or performance.

Cyber-events can affect, potentially in a material way, Federated Hermes' relationships with its customers, employees, products, accounts, shareholders and relevant service providers. Any cyber-event could adversely impact the Fund and its shareholders and cause the Fund to incur financial loss and expense, as well as face exposure to regulatory penalties, reputational damage, damage to employee perceptions of the company, and additional compliance costs associated with corrective measures and credit monitoring for impacted individuals. A cyber-event can cause the Fund, or its service providers, to lose proprietary information, suffer data corruption, lose operational capacity (such as, for example, the loss of the ability to process transactions, generate or make filings or deliver reports or statements, calculate the Fund's NAV, or allow shareholders to transact business or other disruptions to operations), and/or fail to comply with applicable privacy and other laws. Among other potentially harmful effects, cyber-events also can result in theft, unauthorized monitoring and failures in the physical infrastructure or operating systems that support the Fund and its service providers. In addition, cyber-events affecting issuers in which the Fund invests could cause the Fund's investments to lose value.

The Fund's Adviser and its relevant affiliates have established risk management systems reasonably designed to seek to reduce the risks associated with cyber-events. The Fund's Adviser employs various measures aimed at mitigating cybersecurity risk, including, among others, use of firewalls, system segmentation, system monitoring, virus scanning, periodic penetration testing, employee phishing training and an employee cybersecurity awareness campaign. Among other service provider management efforts, Federated Hermes also conducts due diligence on key service providers relating to cybersecurity. Federated Hermes has established a committee to oversee Federated Hermes' information security and data governance efforts, and updates on cyber-events and risks are reviewed with relevant committees, as well as Federated Hermes' and the Fund's Boards of Directors or Trustees (or a committee thereof), on a periodic (generally quarterly) basis (and more frequently when circumstances warrant) as part of risk management oversight responsibilities. However, there is no guarantee that the efforts of Federated Hermes, the Fund's Adviser or its affiliates, or other service providers, will succeed, either entirely or partially as there are limits on Federated Hermes' and the Fund's ability to prevent, detect or mitigate cyber-events. Among other reasons, the cybersecurity landscape is constantly evolving, the nature of malicious cyber-events is becoming increasingly sophisticated and the Fund's Adviser, and its relevant affiliates, cannot control the cyber systems and cybersecurity systems of issuers or third-party service providers.

The Fund can be exposed to operational risk arising from a number of factors, including, but not limited to, human error, processing and communication errors, errors of the Fund's service providers, counterparties, or other third parties, failed or inadequate processes and technology or system failures. In addition, other disruptive events, including, but not limited to, natural disasters and public health crises (such as the COVID-19 pandemic), can adversely affect the Fund's ability to conduct business, in particular if the Fund's employees or the employees of its service providers are unable or unwilling to perform their responsibilities as a result of any such event. Even if the Fund's employees and the employees of its service providers are able to work remotely, those remote work arrangements could result in the Fund's business operations being less efficient than under normal circumstances, could lead to delays in its processing of transactions, and could increase the risk of cyber-events.

Investment Objective and Investment Limitations

**Fundamental Investment Objective** 

The Fund's investment objective is to seek high current income by investing primarily in a high-yield bond mutual fund and in a portfolio of fixed-income securities. The investment objective may not be changed by the Fund's Board without shareholder approval.

**Investment Limitations** 

**Concentration** 

The Fund will not make investments that will result in the concentration of its investments in the securities of issuers primarily engaged in the same industry. For purposes of this restriction, the term concentration has the meaning set forth in the Investment Company Act of 1940 ("1940 Act"), any rule or order thereunder, or any SEC staff interpretation thereof. Government securities, municipal securities and bank instruments will not be deemed to constitute an industry.

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**Underwriting** 

The Fund may not underwrite the securities of other issuers, except that the Fund may engage in transactions involving the acquisition, disposition or resale of its portfolio securities, under circumstances where it may be considered to be an underwriter under the Securities Act of 1933.

**Investing in Commodities** 

The Fund may not purchase or sell physical commodities, provided that the Fund may purchase securities of companies that deal in commodities. For purposes of this restriction, investments in transactions involving futures contracts and options, forward currency contracts, swap transactions and other financial contracts or derivative instruments that settle by payment of cash are not deemed to be investments in commodities.

**Investing in Real Estate** 

The Fund may not purchase or sell real estate, provided that this restriction does not prevent the Fund from investing in issuers which invest, deal or otherwise engage in transactions in real estate or interests therein, or investing in securities that are secured by real estate or interests therein. The Fund may exercise its rights under agreements relating to such securities, including the right to enforce security interests and to hold real estate acquired by reason of such enforcement until that real estate can be liquidated in an orderly manner.

**Borrowing Money and Issuing Senior Securities** 

The Fund may borrow money, directly or indirectly, and issue senior securities to the maximum extent permitted under the 1940 Act, any rule or order thereunder or any SEC staff interpretation thereof.

**Lending** 

The Fund may not make loans, provided that this restriction does not prevent the Fund from purchasing debt obligations, entering into repurchase agreements, lending its assets to broker/dealers or institutional investors and investing in loans, including assignments and participation interests.

**The above limitations cannot be changed unless authorized by the Board and by the "vote of a majority of the Fund's outstanding voting securities," as defined by the 1940 Act. The following limitations, however, may be changed by the Board without shareholder approval. Shareholders will be notified before any material change in these limitations becomes effective.** 

**Illiquid Investments** 

The Fund will not make investments in holdings for which there is no readily available market, or enter into repurchase agreements or purchase time deposits that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment, if immediately after and as a result, the value of such investments would exceed, in the aggregate, 15% of the Fund's net assets.

**Purchases on Margin** 

The Fund will not purchase securities on margin, provided that the Fund may obtain short-term credits necessary for the clearance of purchases and sales of securities and further provided that the Fund may make margin deposits in connection with its use of financial options and futures, forward and spot currency contracts, swap transactions and other financial contracts or derivative instruments.

**Pledging Assets** 

The Fund will not mortgage, pledge or hypothecate any of its assets, provided that this shall not apply to the transfer of securities in connection with any permissible borrowing or to collateral arrangements in connection with permissible activities.

**Additional Information** 

As a matter of non-fundamental investment policy regarding certain of the Fund's investment restrictions, please note the following additional information.

For purposes of the above limitations, the Fund considers certificates of deposit and demand and time deposits issued by a U.S. branch of a domestic bank or savings association having capital, surplus and undivided profits in excess of $100,000,000 at the time of investment to be "cash items" and "bank instruments."

Except with respect to borrowing money, if a percentage limitation is adhered to at the time of investment, a later increase or decrease in percentage resulting from any change in value or net assets will not result in a violation of such limitation.

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In applying the concentration restriction, the Fund will adhere to the requirements of the 1940 Act which limits investments in a particular industry or group of industries to no more than 25% of the value of the Fund's total assets. Further, in applying the concentration restriction: (a) utility companies will be divided according to their services, for example, gas, gas transmission, electric and telephone will each be considered a separate industry; (b) financial service companies will be classified according to the end users of their services, for example, automobile finance, bank finance and diversified finance will each be considered a separate industry; and (c) asset-backed securities will be classified according to the underlying assets securing such securities. To conform to the current view of the SEC staff that only domestic bank instruments may be excluded from industry concentration limitations, as a matter of non-fundamental policy, the Fund will not exclude foreign bank instruments from industry concentration limitation tests so long as the policy of the SEC remains in effect. In addition, investments in bank instruments, and investments in certain industrial development bonds funded by activities in a single industry will be deemed to constitute investment in an industry, except when held for temporary defensive purposes. Foreign securities will not be excluded from industry concentration limits.

In applying the borrowing limitation, in accordance with Section 18(f)(1) of the 1940 Act and current SEC rules and guidance, the Fund is permitted to borrow money, directly or indirectly, provided that immediately after any such borrowing, the Fund has asset coverage of at least 300% for all of the Fund's borrowings, and provided further that in the event that such asset coverage shall at any time fall below 300% the Fund shall, within three business days, reduce the amount of its borrowings to an extent that the asset coverage of such borrowings shall be at least 300%.

**Non-Fundamental Names Rule Policy** 

The Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in investments rated below investment grade (i.e., BB or lower by a nationally recognized statistical rating organization (NRSRO)). The Fund will notify shareholders at least 60 days in advance of any change in its investment policy that would enable the Fund to invest, under normal circumstances, less than 80% of its net assets (plus any borrowings for investment purposes) in investments rated below investment grade (i.e., BB or lower by an NRSRO).

What Do Shares Cost?

**Valuation Of Portfolio Securities by the Fund and the Underlying Fund** 

A Share's NAV is determined as of the end of regular trading on the New York Stock Exchange (NYSE) (normally 4:00 p.m. Eastern time) each day the NYSE is open. The Fund and the Underlying Fund each calculate their NAV by valuing their assets, subtracting their liabilities and dividing the balance by the number of shares outstanding. The NAV is calculated to the nearest whole cent per share.

In calculating its NAV, the Fund and the Underlying Fund generally values investments as follows:

◾ Equity securities listed on a U.S. securities exchange or traded through the U.S. national market system are valued at their last reported sale price or official closing price in their principal exchange or market. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and ask quotations from one or more dealers.

◾ Other equity securities traded primarily in the United States are valued based upon the mean of closing bid and ask quotations from one or more dealers.

◾ Equity securities traded primarily through securities exchanges and regulated market systems outside the United States are valued at their last reported sale price or official closing price in their principal exchange or market. These prices may be adjusted for significant events occurring after the closing of such exchanges or market systems as described below. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and ask quotations from one or more dealers.

◾ Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Adviser. The methods used by pricing services to determine such price evaluations are described below.

◾ Futures contracts listed on exchanges are valued at their reported settlement price. Option contracts listed on exchanges are based upon the mean of closing bid and ask quotations reported by the exchange or from one or more futures commission merchants.

◾ OTC derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation from a pricing service is not readily available, such derivative contracts may be fair valued based upon price evaluations from one or more dealers or using a recognized pricing model for the contract.

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◾ Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. The prospectuses for these mutual funds explain the circumstances under which they will use fair value pricing and the effects of using fair value pricing.

If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund and the Underlying 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, or if information furnished by a pricing service, in the opinion of the Valuation Committee, is deemed not representative of the fair value of such security, the Fund and the Underlying Fund will use the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund and the Underlying Fund could purchase or sell an investment at the price used to calculate the Fund's and the Underlying Fund's NAV. The Fund and the Underlying Fund will not use a pricing service or dealer who is an affiliated person of the Adviser to value investments.

Non-investment assets and liabilities are valued in accordance with U.S. Generally Accepted Accounting Principles (GAAP). The NAV calculation includes expenses, dividend income, interest income, other income and realized and unrealized investment gains and losses through the date of the calculation. Changes in holdings of investments and in the number of outstanding shares are included in the calculation not later than the first business day following such change. Any assets or liabilities denominated in foreign currencies are converted into U.S. dollars using an exchange rate obtained from a third-party.

The Fund and the Underlying Fund follow procedures that are common in the mutual fund industry regarding errors made in the calculation of its NAV. This means that, generally, the Fund and the Underlying Fund will not correct errors of less than one cent per Share.

**Fair Valuation and Significant Events Procedures** 

Pursuant to Rule 2a-5 under the Investment Company Act of 1940, the Board has designated the Adviser as the Fund's and the Underlying Fund's valuation designee to perform the fair value determination for securities and other assets held by the Fund and the Underlying Fund. 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 price evaluations of the current fair value of certain investments for purposes of calculating the NAV. The Valuation Committee is subject to Board oversight and certain reporting and other requirements intended to provide the Board the information it needs to oversee the Adviser's fair valuation determinations.

***Pricing Service Valuations.*** The Valuation Committee, subject to Board oversight, is authorized to use pricing services that provide daily fair value evaluations of the current value of certain investments, primarily fixed-income securities and OTC derivatives contracts. Different pricing services may provide different price evaluations for the same security because of differences in their methods of evaluating market values. 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. A pricing service may find it more difficult to apply these and other factors to relatively illiquid or volatile investments, which may result in less frequent or more significant changes in the price evaluations of these investments. If a pricing service determines that it does not have sufficient information to use its standard methodology, it may evaluate an investment based on the present value of what investors can reasonably expect to receive from the issuer's operations or liquidation.

Special valuation considerations may apply with respect to the Fund's "odd-lot" positions, if any, as the Fund may receive lower prices when it sells such positions than it would receive for sales of institutional round lot positions. Typically, these securities are valued assuming orderly transactions of institutional round lot sizes, but the Fund may hold or, from time to time, transact in such securities in smaller, odd lot sizes.

The Valuation Committee oversees the Fund's and the Underlying Fund's pricing services, which includes, among other things, monitoring significant or unusual price fluctuations above predetermined tolerance levels from the prior day, back-testing of pricing services' prices against actual sale transactions, conducting periodic due diligence meetings and reviews and periodically reviewing the inputs, assumptions and methodologies used by these pricing services. If information furnished by a pricing service is not readily available or, in the opinion of the Valuation Committee, is deemed not representative of the fair value of such security, the security will be fair valued by the Valuation Committee in accordance with procedures established by the Adviser as discussed below in "*Fair Valuation Procedures*."

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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 bid and ask prices for the investment (a "mid" evaluation). The Fund and the Underlying Fund normally use bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund and the Underlying Fund normally use mid evaluations for any other types of fixed-income securities and any OTC derivative contracts.

***Fair Valuation Procedures.*** The Adviser has established procedures for determining the fair value of investments for which price evaluations from pricing services or dealers and market quotations are not readily available. The procedures define an investment's "fair value" as the price that the Fund and the Underlying Fund might reasonably expect to receive upon its current sale. The procedures assume that any sale would be made to a willing buyer in the ordinary course of trading. The procedures require consideration of factors that vary based on the type of investment and the information available. Factors that may be considered in determining an investment's fair value include: (1) the last reported price at which the investment was traded; (2) information provided by dealers or investment analysts regarding the investment or the issuer; (3) changes in financial conditions and business prospects disclosed in the issuer's financial statements and other reports; (4) publicly announced transactions (such as tender offers and mergers) involving the issuer; (5) comparisons to other investments or to financial indices that are correlated to the investment; (6) with respect to fixed-income investments, changes in market yields and spreads; (7) with respect to investments that have been suspended from trading, the circumstances leading to the suspension; and (8) other factors that might affect the investment's value.

The Valuation Committee is responsible for the day-to-day implementation of these procedures subject to the oversight of the Board. The Valuation Committee may also authorize the use of a financial valuation model to determine the fair value of a specific type of investment. The Board periodically reviews the fair valuations made by the Valuation Committee. The Board has also approved the Adviser's fair valuation procedures and significant events procedures as part of the Fund's and the Underlying Fund's compliance program and will review any changes made to the procedures.

Using fair value to price investments may result in a value that is different from an investment's most recent closing price and from the prices used by other registered funds to calculate their NAVs. The application of the fair value procedures to an investment represents a good faith determination of such investment's fair value. 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 could be materially different.

***Significant Events.*** The Adviser has adopted procedures requiring an investment to be priced at its fair value whenever the Adviser 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 dealer, include:

◾ With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;

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

◾ Announcements concerning matters such as acquisitions, recapitalizations or 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. The pricing service uses models that correlate changes between the closing and opening price of equity securities traded primarily in non-U.S. markets to changes in prices in U.S.-traded securities and derivative contracts. The pricing service seeks to employ the model that provides the most significant correlation based on a periodic review of the results. The model uses the correlation to adjust the reported closing price of a foreign equity security based on information available up to the close of the NYSE.

The fair valuation of securities following a significant event can serve to reduce arbitrage opportunities for short-term traders to profit at the expense of long-term investors in the Fund. For example, such arbitrage opportunities may exist when the market on which portfolio securities are traded closes before the Fund calculates its NAV, which is typically the case with Asian and European markets. However, there is no assurance that these significant event procedures will prevent dilution of the NAV by short-term traders.

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For other significant events, the Fund and the Underlying 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 fair value of the investment is determined using the methods discussed above in "*Fair Valuation Procedures*." The Board periodically reviews fair valuations made in response to significant events.

How to Invest in the Fund?

The Fund is used to implement Fixed-Income Strategies for investors in wrap fee accounts or separately managed accounts that are advised or subadvised by FIC, or its affiliates (i.e., Eligible Accounts). The Fund may also be used to implement Fixed-Income Strategies for Eligible Investors in separately managed or other discretionary investment accounts (i.e., also Eligible Accounts) that are advised or subadvised by FIC, its affiliates or, in certain cases, by other third-party discretionary investment managers that have a business relationship with FIC. Shares of the Fund held for an Eligible Investor may be purchased only at the direction of FIC or another Discretionary Manager of the Eligible Account.

Eligible Investors in the Fund do not include investment companies under the Investment Company Act of 1940 ("1940 Act"), or private funds exempt from registration under the 1940 Act pursuant to Sections 3(c)(1) or 3(c)(7) of the 1940 Act, unless appropriate exemptive relief is obtained under the 1940 Act and the Fund determines to accept the purchase order for such an investment. In addition, unless the Fund determines to accept a purchase order for an investment, an Eligible Investor in the Fund does not include: (i) a non-resident alien within the meaning of I.R.C. § 7701(b)(1)(B) who is a natural person; (ii) a covered expatriate (i.e., a U.S. citizen temporarily residing abroad) within the meaning of I.R.C. § 877A(g)(1)(A); (iii) a foreign institutional investor; or (iv) a fund or investor in the European Union.

At any time that an investor in the Fund ceases to be an Eligible Investor and FIC (or its affiliate) is acting in a discretionary capacity, the Fund will redeem the Fund's Shares held by such investor. At any time that an investor in the Fund (through a relationship with a third-party discretionary manager that has a business relationship with FIC (or its affiliate)) ceases to be an Eligible Investor, the third-party discretionary manager will redeem the Fund's Shares held by such investor. In all circumstances, Federated Securities Corp. reserves the right to authorize the liquidation of shares for ineligible investors.

**Additional Payments To Financial Intermediaries**

The Distributor may pay out of its own resources amounts to certain financial intermediaries, including broker-dealers, banks, registered investment advisers, independent financial planners and retirement plan administrators. In some cases, such payments may be made by, or funded from the resources of, companies affiliated with the Distributor (including the Adviser). While Financial Industry Regulatory Authority, Inc. (FINRA) regulations limit the sales charges that you may bear, there are no limits with regard to the amounts that the Distributor may pay out of its own resources. In connection with these payments, the financial intermediary may elevate the prominence or profile of the Fund and/or other Federated Hermes funds within the financial intermediary's organization by, for example, placement on a list of preferred or recommended funds, and/or granting the Distributor preferential or enhanced opportunities to promote the funds in various ways within the financial intermediary's organization. The same financial intermediaries may receive payments under more than one or all categories. These payments assist in the Distributor's efforts to support the sale of Shares. These payments are negotiated and may be based on such factors as: the number or value of Shares that the financial intermediary sells or may sell; the value of client assets invested; the level and types of services or support furnished by the financial intermediary; or the Fund's and/or other Federated Hermes funds' relationship with the financial intermediary. Not all financial intermediaries receive such payments and the amount of compensation may vary by intermediary. You should ask your financial intermediary for information about any payments it receives from the Distributor or the Federated Hermes funds and any services it provides, as well as the fees and/or commissions it charges.

The categories of additional payments are described below.

**Supplemental Payments** 

The Distributor may make supplemental payments to certain financial intermediaries that are holders or dealers of record for accounts in one or more of the Federated Hermes funds. These payments may be based on such factors as: the number or value of Shares the financial intermediary sells or may sell; the value of client assets invested; or the type and nature of services or support furnished by the financial intermediary.

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**Processing Support Payments** 

The Distributor may make payments to certain financial intermediaries that sell Federated Hermes fund shares to help offset their costs associated with client account maintenance support, statement processing and transaction processing. The types of payments that the Distributor may make under this category include: payment of ticket charges on a per-transaction basis; payment of networking fees; and payment for ancillary services such as setting up funds on the financial intermediary's mutual fund trading system.

**Retirement Plan Program Servicing Payments** 

The Distributor may make payments to certain financial intermediaries who sell Federated Hermes fund shares through retirement plan programs. A financial intermediary may perform retirement plan program services itself or may arrange with a third party to perform retirement plan program services. In addition to participant recordkeeping, reporting or transaction processing, retirement plan program services may include: services rendered to a plan in connection with fund/investment selection and monitoring; employee enrollment and education; plan balance rollover or separation; or other similar services.

**Marketing Support Payments** 

From time to time, the Distributor, at its expense, may provide additional compensation to financial intermediaries that sell or arrange for the sale of Shares. Such compensation, provided by the Distributor, may include financial assistance to financial intermediaries that enable the Distributor to participate in or present at conferences or seminars, sales or training programs for invited registered representatives and other employees, client entertainment, client and investor events and other financial intermediary-sponsored events. The Distributor may also provide additional compensation to financial intermediaries for services rendered in connection with technology and programming set-up, platform development and maintenance or similar services and for the provision of sales-related data to the Adviser and/or its affiliates.

The Distributor also may hold or sponsor, at its expense, sales events, conferences and programs for employees or associated persons of financial intermediaries and may pay the travel and lodging expenses of attendees. The Distributor also may provide, at its expense, meals and entertainment in conjunction with meetings with financial intermediaries. Other compensation may be offered to the extent not prohibited by applicable federal or state law or regulations, or the rules of any self-regulatory agency, such as FINRA. These payments may vary depending on the nature of the event or the relationship.

For the year ended December 31, 2022, the following is a list of FINRA member firms that received additional payments from the Distributor or an affiliate. Additional payments may also be made to certain other financial intermediaries that are not FINRA member firms that sell Federated Hermes fund shares or provide services to the Federated Hermes funds and shareholders. These firms are not included in this list. Any additions, modifications or deletions to the member firms identified in this list that have occurred since December 31, 2022, are not reflected. You should ask your financial intermediary for information about any additional payments it receives from the Distributor.

ADP Broker-Dealer, Inc.

American Enterprise Investment Services Inc.

American Portfolios Advisors, Inc.

Aspyre Wealth Partners

Avidian Wealth Solutions LLC

B. C. Ziegler And Company

Beam Wealth Advisors, Inc.

Benjamin F. Edwards & Company, Inc.

BMO Harris Financial Advisors, Inc.

BofA Securities, Inc.

Bolton Global Capital, Inc.

Broadridge Business Process Outsourcing, LLC

Brown Investment Advisory & Trust Company

Cadaret, Grant & Co., Inc.

Cambridge Financial Group, Inc.

CBIZ Financial Solutions, Inc.

Cetera Advisor Networks LLC

Cetera Advisors LLC

Cetera Investment Services LLC

Charles Schwab & Company, Inc.

Citigroup Global Markets Inc.

Citizens Securities, Inc.

Comerica Securities, Inc.

Commonwealth Financial Network

D A Davidson & Co.

Davenport & Company LLC

Deutsche Bank Securities Inc.

Edward D. Jones & Co., LP

Emerald Advisors, LLC

Empower Financial Services, Inc.

Envestnet PMC

FBL Marketing Services, LLC

Fidelity Investments Institutional Operations Company, Inc. (FIIOC)

Fifth Third Securities, Inc.

FIS Brokerage & Securities Services LLC

Gerber Kawasaki Wealth & Investment Management

Goldman Sachs & Co. LLC

Hancock Whitney Investment Services Inc.

HighTower Securities, LLC

Hilltop Securities, Inc.

HUB International Investment Services Inc.

The Huntington Investment Company

Huntington Securities, Inc.

IFP Securities, LLC

Insigneo Securities, LLC

Institutional Cash Distributors, LLC

Interactive Brokers LLC

J.P. Morgan Securities LLC

Janney Montgomery Scott LLC

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Jefferies LLC

KeyBanc Capital Markets Inc.

Kowal Investment Group, LLC

Leafhouse Financial Advisors, LLC

Lincoln Financial Advisors Corporation

Lincoln Financial Distributors, Inc.

Lincoln Investment Planning, LLC

LPL Financial LLC

Lyrical Partners, L.P.

MML Investors

Materetsky Financial Group

Merrill Lynch, Pierce, Fenner and Smith Incorporated

Moneta Group Investment Advisors, LLC

Morgan Stanley Smith Barney LLC

National Financial Services LLC

Nationwide Investment Services Corporation

NewEdge Securities, Inc.

Northwestern Mutual Investment Services, LLC

NYLIFE Distributors LLC

Open Range Financial Group, LLC

Oppenheimer & Company, Inc.

Paychex Securities Corp

Pensionmark Financial Group, LLC

Pershing LLC

PNC Capital Markets, LLC

PNC Investments LLC

Private Client Services, LLC

Raymond James & Associates, Inc.

Raymond James Financial Services, Inc.

RBC Capital Markets, LLC

Rise Consulting, LLC

Robert W Baird & Co. Incorporated

Rockefeller Capital Management

Royal Alliance Associates, Inc.

Sagepoint Financial, LLC

Sageview Advisory Group, LLC

Sanford C. Bernstein & Company, LLC

SBC Wealth Management

Securian Financial Services, Inc.

Securities America, Inc.

Security Distributors, LLC

Spire Securities, LLC

State Street Global Markets, LLC

Stephens Inc.

Steward Partners Investment Advisory, LLC

Stifel, Nicolaus & Company, Incorporated

Strategic Financial Partners, Ltd

TD Ameritrade, Inc.

Teachers Insurance and Annuity Association of America

The London Company of Virginia LLC

Towerpoint Wealth, LLC

Truist Investment Services, Inc.

Truist Securities, Inc.

U.S. Bancorp Investments, Inc.

UBS Financial Services Inc.

UBS Securities LLC

UMB Financial Services, Inc.

United Planners Financial Services of America, L.P.

Validus Capital LLC

Vanguard Marketing Corporation

Veridian Capital Partners

Vining-Sparks IBG, LLC

Vision Financial Markets, LLC

Voya Financial Advisors, Inc.

Wells Fargo Clearing Services LLC

Wells Fargo Securities, LLC

Woodbury Financial Services, Inc.

WR Wealth Planners LLC

XML Financial Group

Purchases In-Kind

You may contact the Distributor to request a purchase of Shares using securities you own. The Fund reserves the right to determine whether to accept your securities and the minimum market value to accept. The Fund will value your securities in the same manner as it values its assets. An in-kind purchase may be treated as a sale of your securities for federal tax purposes; please consult your tax adviser regarding potential tax liability.

Redemption In-Kind

Although the Fund generally intends to pay Share redemptions in cash, it reserves the right, on its own initiative or in response to a shareholder request, to pay the redemption price in whole or in part by a distribution of the Fund's portfolio securities.

Because the Fund has elected to be governed by Rule 18f-1 under the 1940 Act, the Fund is obligated to pay Share redemptions to any one shareholder in cash only up to the lesser of $250,000 or 1% of the net assets represented by such Share class during any 90-day period.

Any Share redemption payment greater than this amount will also be in cash unless the Fund elects to pay all or a portion of the remainder of the redemption in portfolio securities, valued in the same way as the Fund determines its NAV.

Redemption in-kind is not as liquid as a cash redemption. Shareholders receiving the portfolio securities could have difficulty selling them, may incur related transaction costs and would be subject to risks of fluctuations in the securities' values prior to sale.

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Massachusetts Partnership Law

Under certain circumstances, shareholders may be held personally liable as partners under Massachusetts law for obligations of the Trust. To protect its shareholders, the Trust has filed legal documents with Massachusetts that expressly disclaim the liability of its shareholders for acts or obligations of the Trust.

In the unlikely event a shareholder is held personally liable for the Trust's obligations, the Trust is required by the Declaration of Trust to use its property to protect or compensate the shareholder. On request, the Trust will defend any claim made and pay any judgment against a shareholder for any act or obligation of the Trust. Therefore, financial loss resulting from liability as a shareholder will occur only if the Trust itself cannot meet its obligations to indemnify shareholders and pay judgments against them.

Account and Share Information

**Voting Rights** 

Each Share of the Fund gives the shareholder one vote in Trustee elections and other matters submitted to shareholders for vote.

All Shares of the Trust have equal voting rights, except that in matters affecting only a particular Fund or class, only Shares of that Fund or class are entitled to vote.

Trustees may be removed by the Board or by shareholders at a special meeting. A special meeting of shareholders will be called by the Board upon the written request of shareholders who own at least 10% of the Trust's outstanding Shares.

As of February 7, 2023, the following shareholders owned of record, beneficially, or both, 5% or more of outstanding Shares: Raymond James Financial Services, Inc., St. Petersburg, FL, owned approximately 598,960 Shares (44.80%); Morgan Stanley Smith Barney LLC, New York, NY, owned approximately 431,541 Shares (32.27%); and The Fulton Company, Lancaster, PA, owned approximately 177,727 Shares (13.29%).

Shareholders owning 25% or more of outstanding Shares may be in control and be able to affect the outcome of certain matters presented for a vote of shareholders.

Morgan Stanley Smith Barney LLC is organized in the State of Delaware.

Raymond James Financial Services, Inc. is organized in the State of Florida.

Tax Information

**Federal Income Tax** 

The Fund intends to meet requirements of Subchapter M of the Internal Revenue Code (the "Code") applicable to regulated investment companies. If these requirements are not met, it will not receive special tax treatment and will be subject to federal corporate income tax.

The Fund will be treated as a single, separate entity for federal income tax purposes so that income earned and capital gains and losses realized by the Trust's other portfolios will be separate from those realized by the Fund.

The Fund is entitled to a loss carryforward, which may reduce the taxable income or gain that the Fund would realize, and to which the shareholder would be subject, in the future.

**Tax Basis Information** 

The Fund's Transfer Agent and/or your financial intermediary is required to provide you with the cost basis information on the sale of any of your Shares in the Fund, subject to certain exceptions.

**FOREIGN INVESTMENTS** 

If the Fund or the Underlying Fund purchase foreign securities, its investment income may be subject to foreign withholding or other taxes that could reduce the return on these securities. Tax treaties between the United States and foreign countries, however, may reduce or eliminate the amount of foreign taxes to which the Fund or the Underlying Fund would be subject. The effective rate of foreign tax cannot be predicted since the amount of Fund or Underlying Fund assets to be invested within various countries is uncertain. However, the Fund and the Underlying Fund intend to operate so as to qualify for treaty-reduced tax rates when applicable.

Distributions from the Fund or Underlying Fund may be based on estimates of book income for the year. Book income generally consists solely of the income generated by the securities in the portfolio, whereas tax-basis income includes, in addition, gains or losses attributable to currency fluctuation. Due to differences in the book and tax treatment of fixed-income securities denominated in foreign currencies, it is difficult to project currency effects on an interim basis. Therefore, to the extent that currency fluctuations cannot be anticipated, a portion of distributions to shareholders could later be designated as a return of capital, rather than income, for income tax purposes, which may be of particular concern to simple trusts.

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If more than 50% of the value of the Fund's or the Underlying Fund's assets at the end of the tax year is represented by stock or securities of foreign corporations, the Fund or the Underlying Fund will qualify for certain Code provisions that allow their shareholders to claim a foreign tax credit or deduction on their U.S. income tax returns. The Code may limit a shareholder's ability to claim a foreign tax credit. Shareholders who elect to deduct their portion of the Fund's foreign taxes rather than take the foreign tax credit must itemize deductions on their income tax returns.

Who Manages and Provides Services to the Fund?

**Board of Trustees** 

The Board of Trustees is responsible for managing the Trust's business affairs and for exercising all the Trust's powers except those reserved for the shareholders. The following tables give information about each Trustee and the senior officers of the Fund. Where required, the tables separately list Trustees who are "interested persons" of the Fund (i.e., "Interested" Trustees) and those who are not (i.e., "Independent" Trustees). Unless otherwise noted, the address of each person listed is 1001 Liberty Avenue, Pittsburgh, PA 15222-3779. The address of all Independent Trustees listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2022, the Trust comprised five portfolios, and the Federated Hermes Complex consisted of 33 investment companies (comprising 102 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Trustee oversees all portfolios in the Federated Hermes Complex and serves for an indefinite term.

As of February 7, 2023, the Fund's Board and Officers as a group owned less than 1% of the Fund's outstanding Shares.

**qualifications of Independent Trustees** 

Individual Trustee qualifications are noted in the "Independent Trustees Background and Compensation" chart. In addition, the following characteristics are among those that were considered for each existing Trustee and will be considered for any Nominee Trustee.

◾ Outstanding skills in disciplines deemed by the Independent Trustees to be particularly relevant to the role of Independent Trustee and to the Federated Hermes funds, including legal, accounting, business management, the financial industry generally and the investment industry particularly.

◾ Desire and availability to serve for a substantial period of time, taking into account the Board's current mandatory retirement age of 75 years.

◾ No conflicts which would interfere with qualifying as independent.

◾ Appropriate interpersonal skills to work effectively with other Independent Trustees.

◾ Understanding and appreciation of the important role occupied by Independent Trustees in the regulatory structure governing regulated investment companies.

◾ Diversity of background.

**Interested Trustees Background and Compensation** 

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| | | | |
|:---|:---|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust**<br> **Date Service Began**<br>| &nbsp;&nbsp; **Principal Occupation(s) for Past Five Years,** <br> **Other Directorships Held and Previous Position(s)**<br>| **Aggregate**<br> **Compensation**<br> **From Fund**<br> **(past fiscal year)**<br>| **Total Compensation**<br> **From Fund and**<br> **Federated Hermes Complex**<br> **(past calendar year)**<br>|
| **J. Christopher Donahue\***<br> Birth Date: April 11, 1949<br> President and Trustee<br> Indefinite Term<br> Began serving: October 2005<br>| &nbsp;&nbsp; **Principal Occupations:** Principal Executive Officer and President of certain <br> of the Funds in the Federated Hermes Complex; Director or Trustee of the <br> Funds in the Federated Hermes Complex; President, Chief Executive <br> Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, <br> Federated Investment Management Company; Trustee, Federated <br> Investment Counseling; Chairman and Director, Federated Global <br> Investment Management Corp.; Chairman and Trustee, Federated Equity <br> Management Company of Pennsylvania; Trustee, Federated Shareholder <br> Services Company; Director, Federated Services Company.<br> **Previous Positions:** President, Federated Investment Counseling; President <br> and Chief Executive Officer, Federated Investment Management Company, <br> Federated Global Investment Management Corp. and Passport <br> Research, Ltd.; Chairman, Passport Research, Ltd.<br>| $0 | $0  |

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| | | | |
|:---|:---|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust**<br> **Date Service Began**<br>| &nbsp;&nbsp; **Principal Occupation(s) for Past Five Years,** <br> **Other Directorships Held and Previous Position(s)**<br>| **Aggregate**<br> **Compensation**<br> **From Fund**<br> **(past fiscal year)**<br>| **Total Compensation**<br> **From Fund and**<br> **Federated Hermes Complex**<br> **(past calendar year)**<br>|
| **John B. Fisher\***<br> Birth Date: May 16, 1956<br> Trustee<br> Indefinite Term<br> Began serving: May 2016<br>| &nbsp;&nbsp; **Principal Occupations:** Principal Executive Officer and President of certain <br> of the Funds in the Federated Hermes Complex; Director or Trustee of <br> certain of the Funds in the Federated Hermes Complex; Director and Vice <br> President, Federated Hermes, Inc.; President, Director/Trustee and CEO, <br> Federated Advisory Services Company, Federated Equity Management <br> Company of Pennsylvania, Federated Global Investment Management <br> Corp., Federated Investment Counseling, Federated Investment <br> Management Company and Federated MDTA LLC; Director, Federated <br> 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>| $0 | $0 |

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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 Trustees Background, Qualifications and Compensation** 

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| | | | |
|:---|:---|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust**<br> **Date Service Began**<br>| &nbsp;&nbsp; **Principal Occupation(s) and Other Directorships Held for** <br> **Past Five Years, Previous Position(s) and Qualifications**<br>| **Aggregate**<br> **Compensation**<br> **From Fund**<br> **(past fiscal year)**<br>| **Total Compensation**<br> **From Fund and**<br> **Federated Hermes Complex**<br> **(past calendar year)**<br>|
| **John T. Collins**<br> Birth Date: January 24, 1947<br> Trustee<br> Indefinite Term<br> Began serving: October 2013<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee and Chair of the Board of <br> Directors or Trustees, of the Federated Hermes Complex; formerly, <br> Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired).<br> **Other Directorships Held:** Director, KLX Energy Services Holdings, Inc. <br> (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 Group, <br> Inc. (a private equity firm) and as a Director of KLX Corp. Mr. Collins serves <br> as Chairman Emeriti, Bentley University. Mr. Collins previously served as <br> Director and Audit Committee Member, Bank of America Corp.; Director, <br> FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical <br> Center (Harvard University Affiliate Hospital).<br>| $297.70 | $385000 |
| **G. Thomas Hough**<br> Birth Date: February 28, 1955<br> Trustee<br> Indefinite Term<br> Began serving: August 2015<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee, Chair of the Audit Committee <br> of the Federated Hermes Complex; 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, Inc.; <br> formerly, Director, Member of Governance and Compensation Committees, <br> Publix Super Markets, Inc.<br> **Qualifications:** Mr. Hough has served in accounting, business management <br> and directorship positions throughout his career. Mr. Hough most recently <br> held the position of Americas Vice Chair of Assurance with Ernst & <br> Young LLP (public accounting firm). Mr. Hough serves on the President's <br> Cabinet and Business School Board of Visitors for the University of <br> Alabama. Mr. Hough previously served on the Business School Board of <br> Visitors for Wake Forest University, and he previously served as an <br> Executive Committee member of the United States Golf Association.<br>| $282.23 | $365000  |

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| | | | |
|:---|:---|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust**<br> **Date Service Began**<br>| &nbsp;&nbsp; **Principal Occupation(s) and Other Directorships Held for** <br> **Past Five Years, Previous Position(s) and Qualifications**<br>| **Aggregate**<br> **Compensation**<br> **From Fund**<br> **(past fiscal year)**<br>| **Total Compensation**<br> **From Fund and**<br> **Federated Hermes Complex**<br> **(past calendar year)**<br>|
| **Maureen Lally-Green**<br> Birth Date: July 5, 1949<br> Trustee<br> Indefinite Term<br> Began serving: August 2009<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee of the Federated Hermes <br> Complex; Adjunct Professor Emerita of Law, Duquesne University School of <br> Law; formerly, Dean of the Duquesne University School of Law and <br> Professor of Law and Interim Dean of the Duquesne University School of <br> Law; formerly, Associate General Secretary and Director, Office of Church <br> 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 business <br> roles and directorship positions throughout her career. Judge Lally-Green <br> previously held the position of Dean of the School of Law of Duquesne <br> University (as well as Interim Dean). Judge Lally-Green previously served as <br> Associate General Secretary for the Diocese of Pittsburgh, a member of the <br> Superior Court of Pennsylvania and as a Professor of Law, Duquesne <br> University School of Law. Judge Lally-Green was appointed by the Supreme <br> Court of Pennsylvania to serve on the Supreme Court's Board of Continuing <br> Judicial Education and the Supreme Court's Appellate Court Procedural <br> Rules Committee. Judge Lally-Green also currently holds the positions on <br> not for profit or for profit boards of directors as follows: Director and Chair, <br> UPMC Mercy Hospital; Regent, Saint Vincent Seminary; Member, <br> Pennsylvania State Board of Education (public); Director, Catholic Charities, <br> Pittsburgh; and Director, CNX Resources Corporation (natural gas). Judge <br> Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy <br> Foundation of Western and Central Pennsylvania; Director, Ireland Institute <br> of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, <br> Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, <br> Pennsylvania Bar Institute; Director, Saint Vincent College; Director and <br> Chair, North Catholic High School, Inc.; Director and Vice Chair, Our <br> Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint <br> Francis University.<br>| $255.17 | $330000 |
| **Thomas M. O'Neill**<br> Birth Date: June 14, 1951<br> Trustee<br> Indefinite Term<br> Began serving: August 2006<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee of the Federated Hermes <br> Complex; Sole Proprietor, Navigator Management Company (investment <br> and strategic consulting).<br> **Other Directorships Held:** None.<br> **Qualifications:** Mr. O'Neill has served in several business, mutual fund and <br> financial management roles and directorship positions throughout his <br> career. Mr. O'Neill serves as Director, Medicines for Humanity. Mr. O'Neill <br> previously served as Chief Executive Officer and President, Managing <br> Director and Chief Investment Officer, Fleet Investment Advisors; President <br> and Chief Executive Officer, Aeltus Investment Management, Inc.; General <br> Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment <br> Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending <br> Officer, Fleet Bank; Director and Consultant, EZE Castle Software <br> (investment order management software); Director, Midway Pacific <br> (lumber); and Director, The Golisano Children's Museum of Naples, Florida<br>| $255.17 | $330000 |
| **Madelyn A. Reilly**<br> Birth Date: February 2, 1956<br> Trustee<br> Indefinite Term<br> Began serving: November 2020<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee of the Federated Hermes <br> Complex; formerly, Senior Vice President for Legal Affairs, General Counsel <br> and Secretary of Board of Directors, Duquesne 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 as <br> Senior Vice President for Legal Affairs, General Counsel and Secretary of <br> Board of Directors and Director of Risk Management and Associate General <br> Counsel, Duquesne University. Prior to her work at Duquesne University, <br> Ms. Reilly served as Assistant General Counsel of Compliance and <br> Enterprise Risk as well as Senior Counsel of Environment, Health and <br> Safety, PPG Industries. Ms. Reilly currently serves as a member of the Board <br> of Directors of UPMC Mercy Hospital.<br>| $231.97 | $300000  |

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| | | | |
|:---|:---|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust**<br> **Date Service Began**<br>| &nbsp;&nbsp; **Principal Occupation(s) and Other Directorships Held for** <br> **Past Five Years, Previous Position(s) and Qualifications**<br>| **Aggregate**<br> **Compensation**<br> **From Fund**<br> **(past fiscal year)**<br>| **Total Compensation**<br> **From Fund and**<br> **Federated Hermes Complex**<br> **(past calendar year)**<br>|
| **P. Jerome Richey**<br> Birth Date: February 23, 1949<br> Trustee<br> Indefinite Term<br> Began serving: October 2013<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee of the Federated Hermes <br> Complex; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, <br> University of Pittsburgh and Executive Vice President and Chief Legal <br> Officer, CONSOL Energy Inc. (split into two separate publicly traded <br> companies known as CONSOL Energy Inc. and CNX 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 and <br> Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as <br> Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and <br> Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey <br> previously served as Chief Legal Officer and Executive Vice President, <br> CONSOL Energy Inc. and CNX Gas Company; and Board Member, Ethics <br> Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm).<br>| $255.17 | $330000 |
| **John S. Walsh**<br> Birth Date: November 28, 1957<br> Trustee<br> Indefinite Term<br> Began serving: November 2005<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee of the Federated Hermes <br> Complex; President and Director, Heat Wagon, Inc. (manufacturer of <br> construction temporary heaters); President and Director, Manufacturers <br> Products, Inc. (distributor of portable construction heaters); President, <br> Portable Heater Parts, a division of Manufacturers Products, Inc.<br> **Other Directorships Held:** None.<br> **Qualifications:** Mr. Walsh has served in several business management roles <br> and directorship positions throughout his career. Mr. Walsh previously <br> served as Vice President, Walsh & Kelly, Inc. (paving contractors).<br>| $231.97 | $300000 |

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**OFFICERS\*** 

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

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| | |
|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust**<br> **Date Service Began**<br>| **Principal Occupation(s) and Previous Position(s)** |
| **Robert J. Ostrowski**<br> Birth Date: April 26, 1963<br> Chief Investment Officer<br> Officer since: September 2006<br>| &nbsp;&nbsp; **Principal Occupations:** Robert J. Ostrowski joined Federated Hermes, Inc. in 1987 as an Investment Analyst and became a <br> Portfolio Manager in 1990. He was named Chief Investment Officer of Federated Hermes, Inc. taxable fixed-income products in <br> 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund's Adviser in <br> 2009 and served as a Senior Vice President of the Fund's Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered <br> Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University.<br>|

---

\*

*Officers do not receive any compensation from the Fund.*

*In addition, the Fund has appointed an Anti-Money Laundering Compliance Officer.*

**DIRECTOR/TRUSTEE EMERITUS PROGRAM** 

The Board has created a position of Director/Trustee Emeritus, whereby an incumbent Director/Trustee who has attained the age of 75 and completed a minimum of five years of service as a director/trustee, may, in the sole discretion of the Committee of Independent Directors/Trustees ("Committee"), be recommended to the full Board of Directors/Trustees of the Fund to serve as Director/Trustee Emeritus.

A Director/Trustee Emeritus that has been approved as such receives an annual fee in an amount equal to a percent of the annual base compensation paid to a Director/Trustee. In the case of a Director/Trustee Emeritus who had previously served at least five years but less than 10 years as a Director/Trustee, the percent will be 10%. In the case of a Director/Trustee Emeritus who had previously served at least 10 years as a Director/Trustee, the percent will be 20%. The Director/Trustee Emeritus will be reimbursed for any expenses incurred in connection with their service, including expenses of travel and lodging incurred in attendance at Board meetings. Director/Trustee Emeritus will continue to receive relevant materials concerning the Funds, will be expected to attend at least one regularly scheduled quarterly meeting of the Board of Directors/Trustees each year and will be available to consult with the Committees or its representatives at reasonable times as requested by the Chairman; however, a Director/Trustee Emeritus does not have any voting rights at Board meetings and is not subject to election by shareholders of the Funds.

The Director/Trustee Emeritus will be permitted to serve in such capacity at the pleasure of the Committee, but the annual fee will cease to be paid at the end of the calendar year during which he or she has attained the age of 80 years, thereafter the position will be honorary.

The following table shows the fees paid to each Director/Trustee Emeritus for the Fund's most recently ended fiscal year and the portion of that fee paid by the Fund or Corporation/Trust.<sup>1</sup>

**EMERITUS Trustees and Compensation** 

---

| | | |
|:---|:---|:---|
| **Director/Trustee Emeritus** | **Compensation**<br> **From Trust**<br> **(past fiscal year)**<br>| **Total**<br> **Compensation**<br> **Paid to**<br> **Director/Trustee**<br> **Emeritus**<sup>1</sup> <br>|
| **Peter E. Madden** | $11.61 | $60000.00 |
| **Charles F. Mansfield, Jr.** | $11.61 | $60000.00 |

---

*The fees paid to a Director/Trustee are allocated among the funds that were in existence at the time the Director/Trustee elected Emeritus status, based on each fund's net assets at that time.*

**BOARD LEADERSHIP STRUCTURE** 

As required under the terms of certain regulatory settlements, the Chairman of the Board is not an interested person of the Fund and neither the Chairman, nor any firm with which the Chairman is affiliated, has a prior relationship with Federated Hermes or its affiliates or (other than his position as a Trustee) with the Fund.

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**Committees of the Board** 

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| | | | |
|:---|:---|:---|:---|
| **Board**<br> **Committee**<br>| &nbsp;&nbsp;&nbsp; **Committee**<br> **Members**<br>| **Committee Functions** | &nbsp;&nbsp;&nbsp; **Meetings Held**<br> **During Last**<br> **Fiscal Year**<br>|
| **Executive** | &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;J. Christopher Donahue<br> John T. Collins<br> &nbsp;&nbsp;&nbsp;&nbsp;G. Thomas Hough<br>| &nbsp;&nbsp;&nbsp; In between meetings of the full Board, the Executive Committee generally may <br> exercise all the powers of the full Board in the management and direction of the <br> business and conduct of the affairs of the Trust in such manner as the Executive <br> Committee shall deem to be in the best interests of the Trust. However, the <br> Executive Committee cannot elect or remove Board members, increase or decrease <br> the number of Trustees, elect or remove any Officer, declare dividends, issue shares <br> or recommend to shareholders any action requiring shareholder approval.<br>| One |
| **Audit** | &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;G. Thomas Hough<br> Maureen Lally-Green<br> Thomas M. O'Neill<br> &nbsp;&nbsp;&nbsp;&nbsp;P. Jerome Richey<br>| &nbsp;&nbsp;&nbsp; The purposes of the Audit Committee are to oversee the accounting and financial <br> reporting process of the Fund, the Fund's internal control over financial reporting <br> and the quality, integrity and independent audit of the Fund's financial statements. <br> The Committee also oversees or assists the Board with the oversight of compliance <br> with legal requirements relating to those matters, approves the engagement and <br> reviews the qualifications, independence and performance of the Fund's <br> independent registered public accounting firm, acts as a liaison between the <br> independent registered public accounting firm and the Board and reviews the Fund's <br> internal audit function.<br>| Seven |
| **Nominating** | &nbsp;&nbsp;&nbsp; John T. Collins<br> &nbsp;&nbsp;&nbsp;&nbsp;G. Thomas Hough <br> Maureen Lally-Green<br> Thomas M. O'Neill<br> Madelyn A. Reilly<br> &nbsp;&nbsp;&nbsp;&nbsp;P. Jerome Richey<br> John S. Walsh<br>| &nbsp;&nbsp;&nbsp; The Nominating Committee, whose members consist of all Independent Trustees, <br> selects and nominates persons for election to the Fund's Board when vacancies <br> occur. The Committee will consider candidates recommended by shareholders, <br> Independent Trustees, officers or employees of any of the Fund's agents or service <br> providers and counsel to the Fund. Any shareholder who desires to have an <br> individual considered for nomination by the Committee must submit a <br> recommendation in writing to the Secretary of the Fund, at the Fund's address <br> appearing on the back cover of this SAI. The recommendation should include the <br> name and address of both the shareholder and the candidate and detailed <br> information concerning the candidate's qualifications and experience. In identifying <br> and evaluating candidates for consideration, the Committee shall consider such <br> factors as it deems appropriate. Those factors will ordinarily include: integrity, <br> intelligence, collegiality, judgment, diversity, skill, business and other experience, <br> qualification as an "Independent Trustee," the existence of material relationships <br> which may create the appearance of a lack of independence, financial or accounting <br> knowledge and experience and dedication and willingness to devote the time and <br> attention necessary to fulfill Board responsibilities.<br>| One |

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**BOARD'S ROLE IN RISK OVERSIGHT** 

The Board's role in overseeing the Fund's general risks includes receiving performance reports for the Fund and risk management reports from Federated Hermes' Chief Risk Officer at each regular Board meeting. The Chief Risk Officer is responsible for enterprise risk management at Federated Hermes, which includes risk management committees for investment management and for investor services. The Board also receives regular reports from the Fund's Chief Compliance Officer regarding significant compliance risks.

On behalf of the Board, the Audit Committee plays a key role overseeing the Fund's financial reporting and valuation risks. The Audit Committee meets regularly with the Fund's Principal Financial Officer and outside auditors, as well as with Federated Hermes' Chief Audit Executive to discuss financial reporting and audit issues, including risks relating to financial controls.

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**Board Ownership Of Shares In The Fund And In The Federated Hermes Family Of Investment Companies As Of December 31, 2022** 

---

| | | |
|:---|:---|:---|
| **Interested Board**<br> **Member Name**<br>| &nbsp;&nbsp; **Dollar Range of**<br> **Shares Owned in**<br> **Federated Hermes High Yield** <br> **Strategy Portfolio**<br>| &nbsp;&nbsp; **Aggregate**<br> **Dollar Range of**<br> **Shares Owned in**<br> **Federated Hermes Family of**<br> **Investment Companies\***<br>|
| J. Christopher Donahue |  | Over $100,000 |
| John B. Fisher |  | Over $100,000 |
| **Independent Board**<br> **Member Name**<br>|  |  |
| John T. Collins |  | Over $100,000 |
| G. Thomas Hough |  | Over $100,000 |
| Maureen Lally-Green |  | Over $100,000 |
| Thomas M. O'Neill |  | Over $100,000 |
| Madelyn A. Reilly |  | Over $100,000 |
| P. Jerome Richey |  | Over $100,000 |
| John S. Walsh |  | Over $100,000 |

---

\* For the calendar year ended December 31, 2021, each Trustee listed owned in the aggregate over $100,000 in the Federated Hermes Family of Investment Companies.

**INVESTMENT ADVISER for the fund and the underlying fund** 

Federated Investment Management Company is the Adviser to both the Fund and the Underlying Fund. Federated Investment Management Company is a wholly owned subsidiary of Federated Hermes.

The Adviser conducts investment research and makes investment decisions for the Fund. The Adviser has entered into an agreement with the Fund to reimburse the Fund for certain administrative expenses (other than extraordinary expenses) such that the net expenses of the Fund will be 0.00%. Shareholders must approve any change to the contractual waiver or reimbursement.

The Underlying Fund is managed independently of the Fund. The Underlying Fund's Adviser does not charge a fee for its services to the Underlying Fund.

The Adviser shall not be liable to the Trust or any Fund shareholder for any losses that may be sustained in the purchase, holding or sale of any security or for anything done or omitted by it, except acts or omissions involving willful misfeasance, bad faith, gross negligence or reckless disregard of the duties imposed upon it by its contract with the Trust.

In December 2017, Federated Investors, Inc., now Federated Hermes, became a signatory to the Principles for Responsible Investment (PRI). The PRI is an investor initiative in partnership with the United Nations Environment Programme Finance Initiative and the United Nations Global Compact. Commitments made as a signatory to the PRI are not legally binding, but are voluntary and aspirational. They include efforts, where consistent with our fiduciary responsibilities, to incorporate environmental, social and corporate governance (ESG) issues into investment analysis and investment decision making, to be active owners and incorporate ESG issues into our ownership policies and practices, to seek appropriate disclosure on ESG issues by the entities in which we invest, to promote acceptance and implementation of the PRI within the investment industry, to enhance our effectiveness in implementing the PRI, and to report on our activities and progress towards implementing the PRI. Being a signatory to the PRI does not obligate Federated Hermes to take, or not take, any particular action as it relates to investment decisions or other activities.

In July 2018, Federated Investors, Inc., now Federated Hermes, acquired a majority interest in Federated Hermes Limited (FHL) (formerly, Hermes Fund Managers Limited), a pioneer of integrated ESG investing. Federated Hermes now owns 100% of FHL. FHL's experience with ESG issues contributes to Federated Hermes' understanding of material risks and opportunities these issues may present.

EOS at Federated Hermes, which was established as Hermes Equity Ownership Services Limited (EOS) in 2004 as an affiliate of FHL and Hermes Investment Management Limited, is a 50+ member engagement and stewardship team that conducts long-term, objectives-driven dialogue with board and senior executive level representatives of approximately 1,000 unique issuers annually. It seeks to address the most material ESG risks and opportunities through constructive and continuous discussions with the goal of improving long-term results for investors. Engagers' deep understanding across sectors, themes and regional markets, along with language and cultural expertise, allows EOS to provide insights to companies on the merits of addressing ESG risks and the positive benefits of capturing opportunities. Federated Hermes investment management teams have access to the insights gained from understanding a company's approach to these long-term strategic matters as an additional input to improve portfolio risk/return characteristics.

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**Portfolio Manager Information** 

The following information about the Fund's Portfolio Managers is provided as of the end of the Fund's most recently completed fiscal year unless otherwise indicated.

**Mark Durbiano, Portfolio Manager** 

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| | | |
|:---|:---|:---|
| **Types of Accounts Managed**<br> **by Mark Durbiano**<br>| &nbsp;&nbsp;&nbsp; **Total Number of Additional Accounts**<br> **Managed/Total Assets\***<br>| &nbsp;&nbsp;&nbsp; **Additional Accounts/Assets Managed**<br> **that are Subject to Advisory Fee**<br> **Based on Account Performance**<br>|
| Registered Investment Companies | 19/$13.4 billion | 0/$0 |
| Other Pooled Investment Vehicles | 3/$252.7 million | 0/$0 |
| Other Accounts | 5/$889.9 million | 1/$83.2 million |

---

\*

*None of the Accounts has an advisory fee that is based on the performance of the account.*

*Dollar value range of shares owned in the Fund: None.* 

Mark Durbiano is paid a fixed base salary and a variable annual incentive. Base salary is determined within a market competitive, position-specific salary range, based on the portfolio manager's experience and performance. The annual incentive amount is determined based primarily on Investment Product Performance (IPP) and may also include a discretionary component based on a variety of factors deemed relevant, such as financial measures and performance and may be paid entirely in cash, or in a combination of cash and restricted stock of Federated Hermes, Inc. ("Federated Hermes"). The total combined annual incentive opportunity is intended to be competitive in the market for this portfolio manager role.

The Fund will gain exposure to high-yield securities by investing in another fund (the "High Yield Bond Core Fund"). IPP is measured on a rolling one, three and five calendar year pre-tax gross total return basis versus the High Yield Bond Core Fund's benchmark (i.e., Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index) and the High Yield Bond Core Fund's designated peer group of comparable accounts. Mr. Durbiano manages the High Yield Bond Core Fund according to its specific investment program. Thus, although Mr. Durbiano is not responsible for making investment decisions directly on behalf of the Fund, the high-yield fixed-income portion of the Fund's portfolio may be subject to his management of the High Yield Bond Core Fund. Performance periods are adjusted if a portfolio manager has been managing an account for less than five years; accounts with less than one year of performance history under a portfolio manager may be excluded.

As noted above, Mr. Durbiano is also the portfolio manager for other accounts in addition to the High Yield Bond Core Fund. Such other accounts may have different benchmarks and performance measures. The allocation or weighting given to the performance of the High Yield Bond Core Fund or other accounts or activities for which Mr. Durbiano is responsible when his compensation is calculated may be equal or can vary.

In addition, Mr. Durbiano has oversight responsibility for other portfolios that he does not personally manage and serves on one or more Investment Teams that establish guidelines on various performance drivers (e.g., currency, duration, sector, volatility and/or yield curve) for taxable, fixed-income accounts. A portion of the IPP score is based on Federated Hermes' senior management's assessment of team contributions.

For purposes of calculating the annual incentive amount, each account managed by the portfolio manager currently is categorized into one of three IPP groups (which may be adjusted periodically). Within each performance measurement period and IPP group, IPP currently is calculated on the basis of an assigned weighting to each account managed or activity engaged in by the portfolio manager and included in the IPP groups. At the account level, the weighting assigned to the High Yield Bond Core Fund is lesser than or equal to the weighting assigned to other accounts or activities used to determine IPP (but can be adjusted periodically). A portion of the bonus tied to the IPP score may be adjusted based on management's assessment of overall contributions to account performance and any other factors as deemed relevant. Pursuant to the terms of a business agreement, Mr. Durbiano's annual incentives may include certain guaranteed amounts.

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Any individual allocations from the discretionary pool may be determined, by executive management on a discretionary basis using various factors, such as, for example, on a product, strategy or asset class basis, and considering overall contributions and any other factors deemed relevant (and may be adjusted periodically).

**Steven J. Wagner, Portfolio Manager** 

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| | |
|:---|:---|
| **Types of Accounts Managed**<br> **by Steven J. Wagner**<br>| &nbsp;&nbsp;&nbsp; **Total Number of Additional Accounts**<br> **Managed/Total Assets\***<br>|
| Registered Investment Companies | 11/$10.2 billion |
| Other Pooled Investment Vehicles | 1/$49.9 million |
| Other Accounts | 3/$93.0 million |

---

\*

*None of the Accounts has an advisory fee that is based on the performance of the account.*

*Dollar value range of shares owned in the Fund: None.* 

Steven J. Wagner is paid a fixed base salary and a variable annual incentive. Base salary is determined within a market competitive, position-specific salary range, based on the portfolio manager's experience and performance. The annual incentive amount is determined based primarily on Investment Product Performance (IPP) and may also include a discretionary component based on a variety of factors deemed relevant, such as financial measures and performance and may be paid entirely in cash, or in a combination of cash and restricted stock of Federated Hermes, Inc. ("Federated Hermes"). The total combined annual incentive opportunity is intended to be competitive in the market for this portfolio manager role.

The Fund will gain exposure to high-yield securities by investing in another fund (the "High Yield Bond Core Fund"). IPP is measured on a rolling one, three and five calendar year pre-tax gross total return basis versus the High Yield Bond Core Fund's benchmark (i.e., Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index) and the High Yield Bond Core Fund's designated peer group of comparable accounts. Mr. Wagner manages the High Yield Bond Core Fund according to its specific investment program. Thus, although Mr. Wagner is not responsible for making investment decisions directly on behalf of the Fund, the high-yield fixed-income portion of the Fund's portfolio may be subject to his management of the High Yield Bond Core Fund. Performance periods are adjusted if a portfolio manager has been managing an account for less than five years; accounts with less than one year of performance history under a portfolio manager may be excluded.

As noted above, Mr. Wagner is also the portfolio manager for other accounts in addition to the High Yield Bond Core Fund. Such other accounts may have different benchmarks and performance measures. The allocation or weighting given to the performance of the High Yield Bond Core Fund or other accounts or activities for which Mr. Wagner is responsible when his compensation is calculated may be equal or can vary.

In addition, Mr. Wagner serves on one or more Investment Teams that establish guidelines on various performance drivers (e.g., currency, duration, sector, volatility and/or yield curve) for taxable, fixed-income accounts. A portion of the IPP score is based on Federated Hermes' senior management's assessment of team contributions.

For purposes of calculating the annual incentive amount, each account managed by the portfolio manager currently is categorized into one of three IPP groups (which may be adjusted periodically). Within each performance measurement period and IPP group, IPP currently is calculated on the basis of an assigned weighting to each account managed or activity engaged in by the portfolio manager and included in the IPP groups. At the account level, the weighting assigned to the High Yield Bond Core Fund is lesser than or equal to the weighting assigned to other accounts or activities used to determine IPP (but can be adjusted periodically). Additionally, a portion of Mr. Wagner's IPP score is based on the performance of the accounts for which he provides research and analytic support. A portion of the bonus tied to the IPP score may be adjusted based on management's assessment of overall contributions to account performance and any other factors as deemed relevant.

Any individual allocations from the discretionary pool may be determined, by executive management on a discretionary basis using various factors, such as, for example, on a product, strategy or asset class basis, and considering overall contributions and any other factors deemed relevant (and may be adjusted periodically).

**Services Agreement** 

Federated Advisory Services Company, an affiliate of the Adviser, provides certain support services to the Adviser. The fee for these services is paid by the Adviser and not by the Fund.

**Other Related Services** 

Affiliates of the Adviser may, from time to time, provide certain electronic equipment and software to institutional customers in order to facilitate the purchase of Fund Shares offered by the Distributor.

**35**

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**Code Of Ethics Restrictions On Personal Trading** 

As required by Rule 17j-1 of the Investment Company Act of 1940 and Rule 204A-1 under the Investment Advisers Act (as applicable), the Fund, its Adviser and its Distributor have adopted codes of ethics. These codes govern securities trading activities of investment personnel, Fund Trustees and certain other employees. Although they do permit these people to trade in securities, including those that the Fund could buy, as well as Shares of the Fund, they also contain significant safeguards designed to protect the Fund and its shareholders from abuses in this area, such as requirements to obtain prior approval for, and to report, particular transactions.

**Voting Proxies On Fund Portfolio Securities** 

The Board has delegated to the Adviser authority to vote proxies on the securities held in the Fund's portfolio. The Board has also approved the Adviser's policies and procedures for voting the proxies, which are described below.

**Proxy Voting Policies** 

As an investment adviser with a fiduciary duty to the Fund and its shareholders, the Adviser's general policy is to cast proxy votes in favor of management proposals and shareholder proposals that the Adviser anticipates will enhance the long-term value of the securities being voted in a manner that is consistent with the investment objectives of the Fund. Generally, this will mean voting for proposals that the Adviser believes will improve the management of a company, increase the rights or preferences of the voted securities, or increase the chance that a premium offer would be made for the company or for the voted securities. This approach to voting proxy proposals will be referred to hereafter as the "General Policy."

The Adviser generally votes consistently on the same matter when securities of an issuer are held by multiple client portfolios. However, the Adviser may vote differently if a client's investment objectives differ from those of other clients or if a client explicitly instructs the Adviser to vote differently.

The following examples illustrate how the General Policy may apply to the most common management proposals and shareholder proposals. However, whether the Adviser supports or opposes a proposal will always depend on a thorough understanding of the Fund's investment objectives and the specific circumstances described in the proxy statement and other available information.

On matters related to the board of directors, generally, the Adviser will vote to elect nominees to the board in uncontested elections except in certain circumstances, such as where the director: (1) had not attended at least 75% of the board meetings during the previous year; (2) serves as the company's chief financial officer, unless the company is headquartered in the UK where this is market practice; (3) has become overboarded (more than five boards for retired executives and more than two boards for CEOs); (4) is the chair of the nominating or governance committee when the roles of chairman of the board and CEO are combined and there is no lead independent director; (5) served on the compensation committee during a period in which compensation appears excessive relative to performance and peers; or (6) served on a board that did not implement a shareholder proposal that the Adviser supported and received more than 50% shareholder support the previous year. In addition, the Adviser will generally vote in favor of: (7) a full slate of directors, where the directors are elected as a group and not individually, unless more than half of the nominees are not independent; (8) shareholder proposals to declassify the board of directors; (9) shareholder proposals to require a majority voting standard in the election of directors; (10) shareholder proposals to separate the roles of chairman of the board and CEO; (11) a proposal to require a company's audit committee to be comprised entirely of independent directors; and (12) shareholder proposals to eliminate supermajority voting requirements in company bylaws.

On other matters of corporate governance, generally, the Adviser will vote: (1) in favor of proposals to grant shareholders the right to call a special meeting if owners of at least 15% of the outstanding stock agree; (2) against proposals to allow shareholders to act by written consent; (3) on a case-by-case basis for proposals to adopt or amend shareholder rights plans (also known as "poison pills"); (4) in favor of shareholder proposals to eliminate supermajority requirements in company bylaws; and (5) in favor of shareholder proposals calling for "Proxy Access," that is, a bylaw change allowing shareholders owning at least 3% of the outstanding common stock for at least three years to nominate candidates for election to the board of directors.

Generally, the Adviser will vote every shareholder proposal of an environmental or social nature on a case-by-case basis. The quality of these shareholder proposals varies widely across markets. Similarly, company disclosures of their business practices related to environmental and social risks are not always adequate for investors to make risk assessments. Thus, the Adviser places great importance on company-specific analyses to determine how to vote. Above all, the Adviser will vote in a manner that would enhance the long-term value of the investment within the framework of the client's investment objectives.

The Adviser's general approach to analyzing these proposals calls for considering the literal meaning of the written proposal, the financial materiality of the proposal's objective and the practices followed by industry peers. This analysis utilizes research reports from the Adviser's proxy advisors, company filings, as well as reports published by the company and other outside organizations.

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On matters of capital structure, generally, the Adviser will vote proxies for U.S. issuers on a case-by-case basis for proposals to authorize the issuance of new shares if not connected to an M&A transaction and the potential dilution is more than 10%, against proposals to create multiple-class voting structures where one class has superior voting rights to the other classes, in favor of proposals to authorize reverse stock splits unless the amount of authorized shares is not also reduced proportionately. Generally, the Adviser will vote proxies for non-U.S. issuers in favor of proposals to authorize issuance of shares with and without pre-emptive rights unless the size of the authorities would threaten to unreasonably dilute existing shareholders.

Votes on executive compensation come in many forms, including advisory votes on U.S. executive compensation plans ("Say On Pay"), advisory and binding votes on the design or implementation of non-U.S. executive remuneration plans and votes to approve new equity plans or amendments to existing plans. Generally, the Adviser will support compensation arrangements that are aligned with the client's long-term investment objectives. With respect to Say On Pay proposals, the Adviser will generally vote in favor unless the compensation plan has failed to align executive compensation with corporate performance, or the design of the plan is likely to lead to misalignment in the future. The Adviser supports the principle of an annual shareholder vote on executive pay and will generally vote accordingly on proposals which set the frequency of the Say On Pay vote.

In some markets, especially Europe, shareholders are provided a vote on the remuneration policy, which sets out the structural elements of a company's executive remuneration plan on a forward-looking basis. The Adviser will generally support these proposals unless the design of the remuneration policy fails to appropriately link executive compensation with corporate performance, total compensation appears excessive relative to the company's industry peer group, with local market dynamics also taken into account; or there is insufficient disclosure to enable an informed judgment, particularly as it relates to the disclosure of the maximum amounts of compensation that may be awarded.

The Adviser will generally vote in favor of equity plan proposals unless they result in unreasonable dilution to existing shareholders, permit replacement of "underwater" options with new options on more favorable terms for the recipient, or omit the criteria for determining the granting or vesting of awards.

On matters relating to corporate transactions, the Adviser will generally vote in favor of mergers, acquisitions and sales of assets if the Adviser's analysis of the proposed business strategy and the transaction price would have a positive impact on the total return for shareholders.

If a shareholders meeting is contested, that is, shareholders are presented with a set of director candidates nominated by company management and a set of director candidates nominated by a dissident shareholder, the Adviser will study the proposed business strategies of both groups and vote in a way that maximizes expected total return for the Fund.

In addition, the Adviser will not vote any proxy if it determines that the consequences or costs of voting outweigh the potential benefit of voting. For example, if a foreign market requires shareholders voting proxies to retain the voted shares until the meeting date (thereby rendering the shares "illiquid" for some period of time), the Adviser will not vote proxies for such shares. In addition, the Adviser is not obligated to incur any expense to send a representative to a shareholder meeting or to translate proxy materials into English.

To the extent that the Adviser is permitted to loan securities, the Adviser does not have the right to vote on securities while they are on loan. However, the Adviser will take all reasonable steps to recall shares prior to the record date when the meeting raises issues that the Adviser believes materially affect shareholder value, provided that the Adviser considers that the benefits of voting on the securities are greater than the associated costs, including the opportunity cost of the lost revenue that would otherwise be generated by the loan. However, there can be no assurance that the Adviser will have sufficient notice of such matters to be able to terminate the loan in time to vote thereon.

The Adviser will take into account feedback from issuers on the voting recommendations of the Adviser's proxy advisory firm if the feedback is provided at least five days before the voting cut-off date. In certain circumstances, primarily those where the Adviser's voting policy is absolute and without exception, issuer feedback will not be part of the voting decision. For example, it is the Adviser's policy to always support a shareholder proposal to separate the roles of chairman of the board and CEO. Thus, any comments from the issuer opposing this proposal would not be considered.

If proxies are not delivered in a timely or otherwise appropriate basis, the Adviser may not be able to vote a particular proxy.

For an Adviser that employs a quantitative investment strategy for certain funds or accounts that does not make use of qualitative research ("Non-Qualitative Accounts"), the Adviser may not have the kind of research to make decisions about how to vote proxies for them. Therefore, the Adviser will vote the proxies of these Non-Qualitative Accounts as follows: (a) in accordance with the Standard Voting Instructions (defined below); (b) if the Adviser is casting votes for the same proxy on behalf of a regular qualitative account and a Non-Qualitative Account, the Non-Qualitative Account would vote in the same manner as the regular qualitative account; (c) if neither of the first two conditions apply, as the proxy advisory firm is recommending; and (d) if none of the previous conditions apply, as recommended by the Proxy Voting Committee.

**Proxy Voting Procedures** 

The Adviser has established a Proxy Voting Committee ("Proxy Committee"), to exercise all voting discretion granted to the Adviser by the Board in accordance with the proxy voting policies. To assist it in carrying out the day-to-day operations related to proxy voting, the Proxy Committee has created the Proxy Voting Management Group (PVMG). The day-to-day operations related to proxy voting are carried out by the Proxy Voting Operations Team (PVOT) and overseen by the PVMG. Besides voting the proxies, this work includes engaging with investee companies on corporate governance matters, managing the proxy

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advisory firm, soliciting voting recommendations from the Adviser's investment professionals, bringing voting recommendations to the Proxy Committee for approval, filing with regulatory agencies any required proxy voting reports, providing proxy voting reports to clients and investment companies as they are requested from time to time and keeping the Proxy Committee informed of any issues related to corporate governance and proxy voting.

The Adviser has compiled a list of specific voting instructions based on the General Policy (the "Standard Voting Instructions"). The Standard Voting Instructions and any modifications to them are approved by the Proxy Committee. The Standard Voting Instructions sometimes call for an investment professional to review the ballot question and provide a voting recommendation to the Proxy Committee (a "case-by-case vote"). The foregoing notwithstanding, the Proxy Committee always has the authority to determine a final voting decision.

The Adviser has hired a proxy advisory firm to perform various proxy voting related administrative services such as ballot reconciliation, vote processing and recordkeeping functions. The Proxy Committee has supplied the proxy advisory firm with the Standard Voting Instructions. The Proxy Committee retains the right to modify the Standard Voting Instructions at any time or to vote contrary to them at any time in order to cast proxy votes in a manner that the Proxy Committee believes is in accordance with the General Policy. The proxy advisory firm may vote any proxy as directed in the Standard Voting Instructions without further direction from the Proxy Committee. However, if the Standard Voting Instructions require case-by-case handling for a proposal, the PVOT will work with the investment professionals and the proxy advisory firm to develop a voting recommendation for the Proxy Committee and to communicate the Proxy Committee's final voting decision to the proxy advisory firm. Further, if the Standard Voting Instructions require the PVOT to analyze a ballot question and make the final voting decision, the PVOT will report such votes to the Proxy Committee on a quarterly basis for review.

**Conflicts of Interest** 

The Adviser has adopted procedures to address situations where a matter on which a proxy is sought may present a potential conflict between the interests of the Fund (and its shareholders) and those of the Adviser or Distributor. This may occur where a significant business relationship exists between the Adviser (or its affiliates) and a company involved with a proxy vote.

A company that is a proponent, opponent, or the subject of a proxy vote, and which to the knowledge of the Proxy Committee has this type of significant business relationship, is referred to below as an "Interested Company."

The Adviser has implemented the following procedures in order to avoid concerns that the conflicting interests of the Adviser or its affiliates have influenced proxy votes. Any employee of the Adviser or its affiliates who is contacted by an Interested Company regarding proxies to be voted by the Adviser must refer the Interested Company to a member of the Proxy Committee, and must inform the Interested Company that the Proxy Committee has exclusive authority to determine how the proxy will be voted. Any Proxy Committee member contacted by an Interested Company must report it to the full Proxy Committee and provide a written summary of the communication. This requirement includes engagement meetings with investee companies and does not include communications with proxy solicitation firms. Under no circumstances will the Proxy Committee or any member of the Proxy Committee make a commitment to an Interested Company regarding the voting of proxies or disclose to an Interested Company how the Proxy Committee has directed such proxies to be voted. If the Standard Voting Instructions already provide specific direction on the proposal in question, the Proxy Committee shall not alter or amend such directions. If the Standard Voting Instructions require the Proxy Committee to provide further direction, the Proxy Committee shall do so in accordance with the proxy voting policies, without regard for the interests of the Adviser with respect to the Interested Company. If the Proxy Committee provides any direction as to the voting of proxies relating to a proposal affecting an Interested Company, it must disclose annually to the Fund's Board information regarding: the significant business relationship; any material communication with the Interested Company; the matter(s) voted on; and how, and why, the Adviser voted as it did. In certain circumstances it may be appropriate for the Adviser to vote in the same proportion as all other shareholders, so as to not affect the outcome beyond helping to establish a quorum at the shareholders' meeting. This is referred to as "proportional voting." If the Fund owns shares of another Federated Hermes mutual fund, generally the Adviser will proportionally vote the client's proxies for that fund or seek direction from the Board or the client on how the proposal should be voted. If the Fund owns shares of an unaffiliated mutual fund, the Adviser may proportionally vote the Fund's proxies for that fund depending on the size of the position. If the Fund owns shares of an unaffiliated exchange-traded fund, the Adviser will proportionally vote the Fund's proxies for that fund.

**Downstream Affiliates** 

If the Proxy Committee gives further direction, or seeks to vote contrary to the Standard Voting Instructions, for a proxy relating to a portfolio company in which the Fund owns more than 10% of the portfolio company's outstanding voting securities at the time of the vote ("Downstream Affiliate"), the Proxy Committee must first receive guidance from counsel to the Proxy Committee as to whether any relationship between the Adviser and the portfolio company, other than such ownership of the portfolio company's securities, gives rise to an actual conflict of interest. If counsel determines that an actual conflict exists, the Proxy Committee must address any such conflict with the executive committee of the board of directors or trustees of any investment company client prior to taking any action on the proxy at issue.

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**Proxy Advisers' Conflicts of Interest** 

Proxy advisory firms may have significant business relationships with the subjects of their research and voting recommendations. For example, a proxy advisory firm board member also sits on the board of a public company for which the proxy advisory firm will write a research report. This and similar situations give rise to an actual or apparent conflict of interest.

In order to avoid concerns that the conflicting interests of the engaged proxy advisory firm have influenced proxy voting recommendations, the Adviser will take the following steps:

◾ A due diligence team made up of employees of the Adviser and/or its affiliates will meet with the proxy advisory firm on an annual basis and determine through a review of their policies and procedures and through inquiry that the proxy advisory firm has established a system of internal controls that provide reasonable assurance that their voting recommendations are not influenced by the business relationships they have with the subjects of their research.

◾ Whenever the standard voting guidelines call for voting a proposal in accordance with the proxy advisory firm recommendation and the proxy advisory firm has disclosed that they have a conflict of interest with respect to that issuer, the PVOT will take the following steps: (a) the PVOT will obtain a copy of the research report and recommendations published by another proxy advisory firm for that issuer; (b) the Director of Proxy Voting, or his designee, will review both the engaged proxy advisory firm research report and the research report of the other proxy advisory firm and determine what vote will be cast. The PVOT will report all proxies voted in this manner to the Proxy Committee on a quarterly basis. Alternatively, the PVOT may seek direction from the Committee on how the proposal shall be voted.

**Proxy Voting Report** 

A report on Form N-PX of how the Fund voted any 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 at FederatedInvestors.com/product-landing/managed-account-pools.do. Select a product name, then click "Documents" and click on "Proxy Voting Record Report." You may also obtain this information by calling 1-800-341-7400. Form N-PX filings are also available at the SEC's website at sec.gov.

**PORTFOLIO HOLDINGS INFORMATION** 

Information concerning the Fund's portfolio holdings is available at FederatedInvestors.com/product-landing/managed-account-pools.do. Select a product and then click on the "Characteristics" tab. You may also obtain this information by calling 1-800-341-7400. A complete listing of the Fund's portfolio holdings as of the end of each calendar quarter is posted on the website 30 days (or the next business day) after the end of the quarter and remains posted for six months thereafter.

Summary portfolio composition information as of the close of each month is posted on the website 15 days (or the next business day) after month-end and remains posted until replaced by the information for the succeeding month. The summary portfolio composition information may include identification of the Fund's top 10 holdings.

You may also access portfolio information as of the end of the Fund's fiscal quarters at FederatedInvestors.com/product-landing/managed-account-pools.do. Select a product and then click on the "Documents" tab. The Fund's Annual Shareholder Report and Semi-Annual Shareholder Report contain complete listings of the Fund's portfolio holdings as of the end of the Fund's second and fourth fiscal quarters. Fiscal quarter information is made available on the website within 70 days after the end of the fiscal quarter. This information is also available in reports filed with the SEC at the SEC's website at sec.gov.

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.

The disclosure policy of the Fund and the Adviser prohibits the disclosure of portfolio holdings information to any investor or intermediary before the same information is made available to other investors. Employees of the Adviser or its affiliates who have access to nonpublic information concerning the Fund's portfolio holdings are prohibited from trading securities on the basis of this information. Such persons must report all personal securities trades and obtain pre-clearance for all personal securities trades other than mutual fund shares.

Firms that provide administrative, custody, financial, accounting, legal or other services to the Fund may receive nonpublic information about the Fund's portfolio holdings for purposes relating to their services. The Fund may also provide portfolio holdings information to publications that rate, rank or otherwise categorize investment companies and to commodities exchange clearing corporations in connection with qualifying the Fund's Shares for use as margin collateral. Traders or portfolio managers may provide "interest" lists to facilitate portfolio trading if the list reflects only that subset of the portfolio for which the trader or portfolio manager is seeking market interest. A list of service providers, publications and other third parties who may receive nonpublic portfolio holdings information appears in the Appendix to this SAI.

The furnishing of nonpublic portfolio holdings information to any third party (other than authorized governmental or regulatory personnel) requires the prior approval of the President of the Adviser and of the Chief Compliance Officer of the Fund. The President of the Adviser and the Chief Compliance Officer will approve the furnishing of nonpublic portfolio holdings information to a third party only if they consider the furnishing of such information to be in the best interests of the Fund and its shareholders. In that regard, and to address possible conflicts between the interests of Fund shareholders and those of the Adviser and its affiliates, the following procedures apply. No consideration may be received by the Fund, the Adviser, any affiliate of the

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Adviser or any of their employees in connection with the disclosure of portfolio holdings information. Before information is furnished, the third party must sign a written agreement that it will safeguard the confidentiality of the information, will use it only for the purposes for which it is furnished and will not use it in connection with the trading of any security. Persons approved to receive nonpublic portfolio holdings information will receive it as often as necessary for the purpose for which it is provided. Such information may be furnished as frequently as daily and often with no time lag between the date of the information and the date it is furnished. The Board receives and reviews annually a list of the persons who receive nonpublic portfolio holdings information and the purposes for which it is furnished.

**Brokerage Transactions And Investment Allocation** 

When selecting brokers and dealers to handle the purchase and sale of portfolio instruments, the Adviser looks for prompt execution of the order at a favorable price. Fixed-income securities are generally traded in an over-the-counter market on a net basis (i.e., without commission) through dealers acting as principal or in transactions directly with the issuer. Dealers derive an undisclosed amount of compensation by offering securities at a higher price than they bid for them. Some fixed-income securities may have only one primary market maker. The Adviser seeks to use dealers it believes to be actively and effectively trading the security being purchased or sold, but may not always obtain the lowest purchase price or highest sale price with respect to a security. The Adviser makes decisions on portfolio transactions and selects brokers and dealers subject to review by the Fund's Board.

Investment decisions for the Fund are made independently from those of other accounts managed by the Adviser and accounts managed by affiliates of the Adviser. When the Fund and one or more of those accounts invests in, or disposes of, the same security, available investments or opportunities for sales will be allocated among the Fund and the account(s) in a manner believed by the Adviser to be equitable. While the coordination and ability to participate in volume transactions may benefit the Fund, it is possible that this procedure could adversely impact the price paid or received and/or the position obtained or disposed of by the Fund. Investment decisions and trading for certain separately managed or wrap-fee accounts, and other accounts, of the Adviser and/or certain investment adviser affiliates of the Adviser are generally made and conducted independently from the Fund. It is possible that such independent trading activity could adversely impact the prices paid or received and/or positions obtained or disposed of by the Fund.

**Brokerage and Research Services** 

Brokerage services include execution of trades and products and services that relate to the execution of trades, including communications services related to trade execution, clearing and settlement, trading software used to route orders to market centers, software that provides algorithmic trading strategies and software used to transmit orders to direct market access (DMA) systems. Research services may include: advice as to the advisability of investing in securities; security analysis and reports; economic studies; industry studies; receipt of quotations for portfolio evaluations; and similar services. Research services assist the Adviser and its affiliates in terms of their overall investment responsibilities to funds and investment accounts for which they have investment discretion. However, particular brokerage and research services received by the Adviser and its affiliates may not be used to service every fund or account, and may not benefit the particular funds and accounts that generated the brokerage commissions. In addition, brokerage and research services paid for with commissions generated by the Fund may be used in managing other funds and accounts. To the extent that receipt of these services may replace services for which the Adviser or its affiliates might otherwise have paid, it would tend to reduce their expenses. The Adviser and its affiliates exercise reasonable business judgment in selecting brokers to execute securities transactions where receipt of research services is a factor. They determine in good faith that commissions charged by such persons are reasonable in relationship to the value of the brokerage and research services provided.

**Administrator** 

Federated Administrative Services (FAS), a subsidiary of Federated Hermes, provides administrative personnel and services, including certain legal, compliance and financial administrative services ("Administrative Services"), necessary for the operation of the Fund. FAS provides Administrative Services for a fee based upon the rates set forth below paid on the average daily net assets of the Fund. 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 with FAS. FAS is also entitled to reimbursement for certain out-of-pocket expenses incurred in providing Administrative Services to the Fund.

---

| | |
|:---|:---|
| **Administrative Services**<br> **Fee Rate**<br>| &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 |

---

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**Custodian** 

State Street Bank and Trust Company, Boston, Massachusetts, is custodian for the securities and cash of the Fund. Foreign instruments purchased by the Fund are held by foreign banks participating in a network coordinated by State Street Bank and Trust Company.

**Transfer Agent And Dividend Disbursing Agent** 

SS&C GIDS, Inc., the Fund's registered transfer agent, maintains all necessary shareholder records.

**Independent Registered Public Accounting Firm** 

The independent registered public accounting firm for the Fund, Ernst & Young LLP, conducts its audits in accordance with the standards of the Public Company Accounting Oversight Board (United States), which require it to plan and perform its audits to provide reasonable assurance about whether the Fund's financial statements and financial highlights are free of material misstatement.

**Distributor** 

The Distributor for the Fund is Federated Securities Corp. Under the Distributor's Contract with the Fund, the Distributor offers Shares on a continuous, best-efforts basis.

**Securities Lending Activities** 

The services provided to the Fund by Citibank, N.A. as securities lending agent may include the following: selecting securities previously identified by the Fund as available for loan to be loaned; locating borrowers identified in the securities lending agency agreement; negotiating loan terms; monitoring daily the value of the loaned securities and collateral; requiring additional collateral as necessary; marking to market non-cash collateral; instructing the Fund's custodian with respect to the transfer of loaned securities; indemnifying the Fund in the event of a borrower default; and arranging for return of loaned securities to the Fund at loan termination.

The Fund did not participate in any securities lending activities during the Fund's most recently completed fiscal year.

---

| | |
|:---|:---|
| **Gross income from securities lending activities** | $00.00 |
| *Fees and/or compensation for securities lending activities and related services* |  |
| Fees paid to securities lending agent from a revenue split | $00.00 |
| Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in <br> the revenue split<br>|  |
| Administrative fees not included in revenue split |  |
| Indemnification fee not included in revenue split |  |
| Rebate (paid to borrower) | $00.00 |
| Other fees not included in revenue split (specify) |  |
| **Aggregate fees/compensation for securities lending activities** | $00.00 |
| **Net income from securities lending activities** | $00.00 |

---

[Financial Information](https://www.sec.gov/Archives/edgar/data/1340579/000162363223000317/form787.htm)

The Financial Statements for the Fund for the fiscal year ended December 31, 2022, are incorporated herein by reference to the Annual Report to Shareholders of Federated Hermes High Yield Strategy Portfolio dated December 31, 2022.

Investment Ratings

**Standard & Poor's Rating Services (S&P) LONG-TERM Issue RATINGS** 

Issue credit ratings are based, in varying degrees, on S&P's analysis of the following considerations: the likelihood of payment-capacity and willingness of the obligor to meet its financial commitment on an obligation in accordance with the terms of the obligation; the nature of and provisions of the obligation; and the protection afforded by, and relative position of, the obligation in the event of bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors' rights.

**AAA**—An obligation rated "AAA" has the highest rating assigned by S&P. The obligor's capacity to meet its financial commitment on the obligation is extremely strong.

**AA**—An obligation rated "AA" differs from the highest rated obligations only to a small degree. The obligor's capacity to meet its financial commitment on the obligation is very strong.

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**A**—An obligation rated "A" is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor's capacity to meet its financial commitment on the obligation is still strong.

**BBB**—An obligation rated "BBB" exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

Obligations rated "BB," "B," "CCC," "CC" and "C" are regarded as having significant speculative characteristics. "BB" indicates the least degree of speculation and "C" the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions.

**BB**—An obligation rated "BB" is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.

**B**—An obligation rated "B" is more vulnerable to nonpayment than obligations rated "BB," but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation.

**CCC**—An obligation rated "CCC" is currently vulnerable to nonpayment, and is dependent upon favorable business, financial and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation.

**CC**—An obligation rated "CC" is currently highly vulnerable to nonpayment.

**C**—A "C" rating is assigned to obligations that are currently highly vulnerable to nonpayment, obligations that have payment arrearages allowed by the terms of the documents, or obligations of an issuer that is the subject of a bankruptcy petition or similar action which have not experienced a payment default. Among others, the "C" rating may be assigned to subordinated debt, preferred stock or other obligations on which cash payments have been suspended in accordance with the instrument's terms or when preferred stock is the subject of a distressed exchange offer, whereby some or all of the issue is either repurchased for an amount of cash or replaced by other instruments having a total value that is less than par.

**D**—An obligation rated "D" is in payment default. The "D" rating category is used when payments on an obligation are not made on the date due, unless S&P believes that such payments will be made within five business days, irrespective of any grace period. The "D" rating also will be used upon the filing of a bankruptcy petition or the taking of similar action if payments on an obligation are jeopardized. An obligation's rating is lowered to "D" upon completion of a distressed exchange offer, whereby some or all of the issue is either repurchased for an amount of cash or replaced by other instruments having a total value that is less than par.

The ratings from "AA" to "CCC" may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

**S&P Rating Outlook** 

An S&P rating outlook assesses the potential direction of a long-term credit rating over the intermediate term (typically six months to two years). In determining a rating outlook, consideration is given to any changes in the economic and/or fundamental business conditions.

**Positive**—Positive means that a rating may be raised.

**Negative**—Negative means that a rating may be lowered.

**Stable**—Stable means that a rating is not likely to change.

**Developing**—Developing means a rating may be raised or lowered.

**N.M.**—N.M. means not meaningful.

**S&P Short-Term Issue RATINGS** 

Short-term ratings are generally assigned to those obligations considered short-term in the relevant market. In the United States, for example, that means obligations with an original maturity of no more than 365 days–including commercial paper.

**A-1**—A short-term obligation rated "A-1" is rated in the highest category by S&P. The obligor's capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor's capacity to meet its financial commitment on these obligations is extremely strong.

**A-2**—A short-term obligation rated "A-2" is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor's capacity to meet its financial commitment on the obligation is satisfactory.

**A-3**—A short-term obligation rated "A-3" exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

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**B**—A short-term obligation rated "B" is regarded as vulnerable and has significant speculative characteristics. The obligor currently has the capacity to meet its financial commitments; however, it faces major ongoing uncertainties which could lead to the obligor's inadequate capacity to meet its financial commitments.

**C**—A short-term obligation rated "C" is currently vulnerable to nonpayment and is dependent upon favorable business, financial and economic conditions for the obligor to meet its financial commitment on the obligation.

**D**—A short-term obligation rated "D" is in payment default. The "D" rating category is used when payments on an obligation are not made on the date due, unless S&P believes that such payments will be made within any stated grace period. However, any stated grace period longer than five business days will be treated as five business days. The "D" rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized.

**MOODY'S Investor Services, Inc. (MOODY's) LONG-TERM RATINGS** 

Moody's long-term ratings are assigned to issuers or obligations with an original maturity of one year or more and reflect both on the likelihood of a default on contractually promised payments and the expected financial loss suffered in the event of default.

**Aaa**—Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk.

**Aa**—Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.

**A**—Obligations rated A are judged to be upper-medium-grade and are subject to low credit risk.

**Baa**—Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics.

**Ba**—Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.

**B**—Obligations rated B are considered speculative and are subject to high credit risk.

**Caa**—Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk.

**Ca**—Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest.

**C**—Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of principal or interest.

Moody's appends numerical modifiers 1, 2 and 3 to each generic rating classification from Aaa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.

**MOODY'S Short-Term RATINGS** 

Moody's short-term ratings are assigned to obligations with an original maturity of 13 months or less and reflect the likelihood of a default on contractually promised payments.

**P-1**—Issuers (or supporting institutions) rated P-1 have a superior ability to repay short-term debt obligations.

**P-2**—Issuers (or supporting institutions) rated P-2 have a strong ability to repay short-term debt obligations.

**P-3**—Issuers (or supporting institutions) rated P-3 have an acceptable ability to repay short-term obligations.

**NP**—Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating categories.

**FITCH, INC. (Fitch) LONG-TERM Debt RATINGs** 

Fitch long-term ratings report Fitch's opinion on an entity's relative vulnerability to default on financial obligations. The "threshold" default risk addressed by the rating is generally that of the financial obligations whose non-payment would best reflect the uncured failure of that entity. As such, Fitch long-term ratings also address relative vulnerability to bankruptcy, administrative receivership or similar concepts, although the agency recognizes that issuers may also make pre-emptive and therefore voluntary use of such mechanisms.

**AAA: Highest Credit Quality**—"AAA" ratings denote the lowest expectation of default risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.

**AA: Very High Credit Quality**—"AA" ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

**A: High Credit Quality**—"A" ratings denote expectations of low default risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings.

**BBB: Good Credit Quality**—"BBB" ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity.

**BB: Speculative**—"BB" ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial flexibility exists which supports the servicing of financial commitments.

**43**

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**B: Highly Speculative**—"B" ratings indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.

**CCC: Substantial Credit Risk**—Default is a real possibility.

**CC: Very High Levels of Credit Risk**—Default of some kind appears probable.

**C: Exceptionally High Levels of Credit Risk**—Default is imminent or inevitable, or the issuer is in standstill. Conditions that are indicative of a "C" category rating for an issuer include: (a) the issuer has entered into a grace or cure period following non-payment of a material financial obligation; (b) the issuer has entered into a temporary negotiated waiver or standstill agreement following a payment default on a material financial obligation; or (c) Fitch otherwise believes a condition of "RD" or "D" to be imminent or inevitable, including through the formal announcement of a distressed debt exchange.

**RD: Restricted Default**—"RD" ratings indicate an issuer that in Fitch's opinion has experienced an uncured payment default on a bond, loan or other material financial obligation but which has not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, and which has not otherwise ceased operating. This would include: (a) the selective payment default on a specific class or currency of debt; (b) the uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a bank loan, capital markets security or other material financial obligation; (c) the extension of multiple waivers or forbearance periods upon a payment default on one or more material financial obligations, either in series or in parallel; or (d) execution of a distressed debt exchange on one or more material financial obligations.

**D: Default**—"D" ratings indicate an issuer that in Fitch's opinion has entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, or which has otherwise ceased business.

Default ratings are not assigned prospectively to entities or their obligations; within this context, non-payment on an instrument that contains a deferral feature or grace period will generally not be considered a default until after the expiration of the deferral or grace period, unless a default is otherwise driven by bankruptcy or other similar circumstance, or by a distressed debt exchange.

"Imminent" default typically refers to the occasion where a payment default has been intimated by the issuer, and is all but inevitable. This may, for example, be where an issuer has missed a scheduled payment, but (as is typical) has a grace period during which it may cure the payment default. Another alternative would be where an issuer has formally announced a distressed debt exchange, but the date of the exchange still lies several days or weeks in the immediate future.

In all cases, the assignment of a default rating reflects the agency's opinion as to the most appropriate rating category consistent with the rest of its universe of ratings, and may differ from the definition of default under the terms of an issuer's financial obligations or local commercial practice.

**FITCH SHORT-TERM DEBT RATINGs** 

A Fitch short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated entity or security stream and relates to the capacity to meet financial obligations in accordance with the documentation governing the relevant obligation. Short-Term Ratings are assigned to obligations whose initial maturity is viewed as "short-term" based on market convention. Typically, this means up to 13 months for corporate, sovereign and structured obligations, and up to 36 months for obligations in U.S. public finance markets.

**F1: Highest Short-Term Credit Quality**—Indicates the strongest intrinsic capacity for timely payment of financial commitments; may have an added "+" to denote any exceptionally strong credit feature.

**F2: Good Short-Term Credit Quality**—Good intrinsic capacity for timely payment of financial commitments.

**F3: Fair Short-Term Credit Quality**—The intrinsic capacity for timely payment of financial commitments is adequate.

**B: Speculative Short-Term Credit Quality**—Minimal capacity for timely payment of financial commitments, plus heightened vulnerability to near-term adverse changes in financial and economic conditions.

**C: High Short-Term Default Risk**—Default is a real possibility.

**RD: Restricted Default**—Indicates an entity that has defaulted on one or more of its financial commitments, although it continues to meet other financial obligations. Applicable to entity ratings only.

**D: Default**—Indicates a broad-based default event for an entity, or the default of a short-term obligation.

**A.M. BEST Company, Inc. (a.m. best) LONG-TERM DEBT and Preferred Stock RATINGS** 

A Best's long-term debt rating is Best's independent opinion of an issuer/entity's ability to meet its ongoing financial obligations to security holders when due.

**aaa: Exceptional**—Assigned to issues where the issuer has an exceptional ability to meet the terms of the obligation.

**aa: Very Strong**—Assigned to issues where the issuer has a very strong ability to meet the terms of the obligation.

**a: Strong**—Assigned to issues where the issuer has a strong ability to meet the terms of the obligation.

**bbb: Adequate**—Assigned to issues where the issuer has an adequate ability to meet the terms of the obligation; however, the issue is more susceptible to changes in economic or other conditions.

**44**

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**bb: Speculative**—Assigned to issues where the issuer has speculative credit characteristics, generally due to a modest margin or principal and interest payment protection and vulnerability to economic changes.

**b: Very Speculative**—Assigned to issues where the issuer has very speculative credit characteristics, generally due to a modest margin of principal and interest payment protection and extreme vulnerability to economic changes.

**ccc, cc, c: Extremely Speculative**—Assigned to issues where the issuer has extremely speculative credit characteristics, generally due to a minimal margin of principal and interest payment protection and/or limited ability to withstand adverse changes in economic or other conditions.

**d: In Default**—Assigned to issues in default on payment of principal, interest or other terms and conditions, or when a bankruptcy petition or similar action has been filed.

Ratings from "aa" to "ccc" may be enhanced with a "+" (plus) or "-" (minus) to indicate whether credit quality is near the top or bottom of a category.

**A.M. BEST SHORT-TERM DEBT RATINGS** 

A Best's short-term debt rating is Best's opinion of an issuer/entity's ability to meet its financial obligations having original maturities of generally less than one year, such as commercial paper.

**AMB-1+ Strongest**—Assigned to issues where the issuer has the strongest ability to repay short-term debt obligations.

**AMB-1 Outstanding**—Assigned to issues where the issuer has an outstanding ability to repay short-term debt obligations.

**AMB-2 Satisfactory**—Assigned to issues where the issuer has a satisfactory ability to repay short-term debt obligations.

**AMB-3 Adequate**—Assigned to issues where the issuer has an adequate ability to repay short-term debt obligations; however, adverse economic conditions likely will reduce the issuer's capacity to meet its financial commitments.

**AMB-4 Speculative**—Assigned to issues where the issuer has speculative credit characteristics and is vulnerable to adverse economic or other external changes, which could have a marked impact on the company's ability to meet its financial commitments.

**d: In Default**—Assigned to issues in default on payment of principal, interest or other terms and conditions, or when a bankruptcy petition or similar action has been filed.

**A.M. Best Rating Modifiers** 

Both long- and short-term credit ratings can be assigned a modifier.

**u**—Indicates the rating may change in the near term, typically within six months. Generally is event-driven, with positive, negative or developing implications.

**pd**—Indicates ratings assigned to a company that chose not to participate in A.M. Best's interactive rating process (discontinued in 2010).

**i**—Indicates rating assigned is indicative.

**A.M. BEST RATING OUTLOOK** 

A.M. Best Credit Ratings are assigned a Rating Outlook that indicates the potential direction of a credit rating over an intermediate term, generally defined as the next 12 to 36 months.

**Positive**—Indicates possible ratings upgrade due to favorable financial/market trends relative to the current trading level.

**Negative**—Indicates possible ratings downgrade due to unfavorable financial/market trends relative to the current trading level.

**Stable**—Indicates low likelihood of rating change due to stable financial/market trends.

**Not Rated** 

Certain nationally recognized statistical rating organizations (NRSROs) may designate certain issues as NR, meaning that the issue or obligation is not rated.

**45**

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Addresses

**Federated Hermes High Yield Strategy Portfolio**

Federated Hermes Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

**Distributor** 

Federated Securities Corp.

1001 Liberty Avenue

Pittsburgh, PA 15222-3779

**Investment Adviser** 

Federated Investment Management Company

1001 Liberty Avenue

Pittsburgh, PA 15222-3779

**Custodian** 

State Street Bank and Trust Company

1 Iron Street

Boston, MA 02110

**Transfer Agent and Dividend Disbursing Agent** 

SS&C GIDS, Inc.

P.O. Box 219318

Kansas City, MO 64121-9318

**Independent Registered Public Accounting Firm**

Ernst & Young LLP

200 Clarendon Street

Boston, MA 02116-5072

**46**

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Appendix

The following is a list of persons, other than the Adviser and its affiliates, that have been approved to receive nonpublic portfolio holdings information concerning the Federated Hermes Complex; however, certain persons below might not receive such information concerning the Fund:

**CUSTODIAN(S)** 

State Street Bank and Trust Company

**INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

Ernst & Young LLP

**LEGAL COUNSEL** 

Goodwin Procter LLP

K&L Gates LLP

**Financial Printer(S)** 

Donnelley Financial Solutions

**Proxy Voting Administrator** 

Glass Lewis & Co., LLC

**SECURITY PRICING SERVICES** 

Bloomberg L.P.

IHS Markit (Markit North America)

ICE Data Pricing & Reference Data, LLC

JPMorgan PricingDirect

Refinitiv US Holdings Inc.

**RATINGS AGENCIES** 

Fitch, Inc.

Moody's Investors Service, Inc.

Standard & Poor's Financial Services LLC

**Other SERVICE PROVIDERS** 

Other types of service providers that have been approved to receive nonpublic portfolio holdings information include service providers offering, for example, trade order management systems, portfolio analytics, or performance and accounting systems, such as:

ACA Technology Surveillance, Inc.

Bank of America Merrill Lynch

Bloomberg L.P.

Charles River Development

Citibank, N.A.

Eagle Investment Systems LLC

Electra Information Systems

FactSet Research Systems Inc.

FISGlobal

Institutional Shareholder Services

Investortools, Inc.

MSCI ESG Research LLC

Sustainalytics U.S. Inc.

Wolters Kluwer N.V.

**47**

------

**Prospectus** 

***February 28, 2023***

![](imga9e862551.gif)

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

**Ticker** FMBPX<br>

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Federated Hermes Mortgage Strategy Portfolio

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A Portfolio of Federated Hermes Managed Pool Series

A mutual fund seeking to provide total return, by investing primarily in a mortgage-backed securities mutual fund and individual mortgage-backed securities, including collateralized mortgage obligations (CMOs). The Fund is used to implement certain fixed-income investment strategies for eligible investors in wrap fee, separately managed and other discretionary investment accounts that are advised or sub-advised by Federated Investment Counseling (FIC), a subsidiary of Federated Hermes Inc., ("Federated Hermes," formerly, Federated Investors, Inc.), or its affiliates, or certain other discretionary managers. Shares of the Fund held for an eligible investor may be purchased only at the direction of FIC or other discretionary managers to such wrap fee, separately managed or other discretionary investment accounts.

As with all mutual funds, the Securities and Exchange Commission (SEC) has not approved or disapproved these securities or passed upon the adequacy of this Prospectus. Any representation to the contrary is a criminal offense.

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

------

**CONTENTS** 

---

| | |
|:---|:---|
| [Fund Summary Information](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_1) | [1](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_1) |
| [What are the Fund's Investment Strategies?](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_5) | [5](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_5) |
| [Information About the Underlying Fund](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_6) | [6](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_6) |
| [What are the Principal Securities in Which the Fund and the Underlying Fund May Invest?](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_7) | [7](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_7) |
| [What are the Specific Investment Risks of the Fund and the Underlying Fund?](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_12) | [12](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_12) |
| [How to Invest in the Fund](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_16) | [16](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_16) |
| [What Do Shares Cost?](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_17) | [17](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_17) |
| [Valuation of Portfolio Securities by the Fund and the Underlying Fund](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_18) | [18](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_18) |
| [How to Purchase Shares](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_18) | [18](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_18) |
| [How to Redeem Shares](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_18) | [18](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_18) |
| [Account and Share Information](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_20) | [20](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_20) |
| [Who Manages the Fund?](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_22) | [22](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_22) |
| [Financial Information](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_22) | [22](#xx_da51bd1e-37e5-4f5e-9394-eecb19deee72_22) |
| [Appendix A: Hypothetical Investment and Expense Information](#xx_68cb8ce6-7b37-44bc-a1ed-4b3c8e94987d_1) | [24](#xx_68cb8ce6-7b37-44bc-a1ed-4b3c8e94987d_1) |

---

------

Fund Summary Information

**Federated Hermes Mortgage Strategy Portfolio (the "Fund")**

**RISK/RETURN SUMMARY: INVESTMENT OBJECTIVE**

The Fund's investment objective is to provide total return by investing primarily in a mortgage-backed securities mutual fund and individual mortgage-backed securities, including collateralized mortgage obligations (CMOs).

**RISK/RETURN SUMMARY: FEES AND EXPENSES**

This table describes the fees and expenses that you may pay if you buy, hold and sell Shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.**

**Shareholder Fees (fees paid directly from your investment)** 

---

| |
|:---|
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |
| Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) |
| Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) |
| Redemption Fee (as a percentage of amount redeemed, if applicable) |
| Exchange Fee |

---

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

**Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)** 

---

| | |
|:---|:---|
| Management Fee |  |
| Distribution (12b-1) Fee |  |
| Other Expenses | 0.17% |
| Acquired Fund Fees and Expenses | 0.02% |
| Total Annual Fund Operating Expenses | 0.19% |
| Fee Waivers and/or Expense Reimbursements<sup>1</sup> | (0.17)% |
| Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 0.02% |

---

The Adviser will not charge a fee for its advisory services to the Fund. The Adviser has contractually agreed to reimburse all expenses of the Fund, excluding extraordinary expenses. Acquired Fund Fees and Expenses are not direct obligations of the Fund and are not contractual reimbursements under the investment advisory contract. Shareholders must approve any change to the contractual reimbursements. Investors should carefully consider the separate fees charged in connection with investment in the Fund.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 for the time periods indicated and then redeem or hold all of your Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that operating expenses remain the same. The Example does not reflect sales charges (loads) on reinvested dividends. If these sales charges (loads) were included, your costs would be higher. Although your actual costs and returns may be higher or lower, based on these assumptions your costs would be:

---

| | |
|:---|:---|
| 1 Year | $2 |
| 3 Years | $6 |
| 5 Years | $11 |
| 10 Years | $26 |

---

**1**

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**Portfolio Turnover** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund Shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 11% of the average value of its portfolio.

**RISK/RETURN SUMMARY: INVESTMENTS, RISKS and PERFORMANCE** 

**What are the Fund's Main Investment Strategies?**

The Fund pursues its investment objective by investing primarily in Mortgage Core Fund (the "Underlying Fund"), a portfolio of Federated Hermes Core Trust. The investment objective of the Underlying Fund is to provide total return. Under normal market conditions, the Underlying Fund invests primarily in mortgage-backed securities (MBS) of investment-grade quality and seeks to provide returns consistent with investments in the market for U.S. home mortgages. The Underlying Fund will invest in MBS that are issued or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises (GSEs). The Underlying Fund may invest in non-agency MBS, which are those not issued or guaranteed by GSEs. The Underlying Fund also may invest in U.S. government securities, asset-backed securities and certain derivative instruments.

When selecting investments for the Fund, the Fund can invest in securities directly or in other investment companies, including, for example, the Underlying Fund and other funds advised by Federated Investment Management Company (the "Adviser" or the "Underlying Fund Adviser") or its affiliates. At times, the Fund's investment in the Underlying Fund may be a substantial portion of the Fund's portfolio.

The Underlying Fund typically seeks to maintain an overall average dollar-weighted portfolio duration that is within one year above or below the Bloomberg US Mortgage-Backed Securities Index (the "Index"). The average dollar-weighted duration of the Index is approximately 5.81 years as of December 31, 2022. At times, the Underlying Fund Adviser's calculation of portfolio duration may result in variances outside this range. Duration is a measure of the price volatility of a fixed-income security as a result of changes in market rates of interest, based on the weighted average timing of the instrument's expected fixed interest and principal payments. The Underlying Fund Adviser seeks to create a portfolio, consisting of MBS, derivative instruments and other securities, that outperforms the Index.

Based on fundamental analysis, the Underlying Fund Adviser will consider a variety of factors when making decisions to purchase or sell particular securities or derivative instruments. The Underlying Fund may, but is not required to, use derivative instruments, which are instruments that have a value based on another instrument, exchange rate or index, and may be used as substitutes for securities in which the Underlying Fund can invest, or to hedge against a potential loss in the underlying asset. There can be no assurance that the Underlying Fund's use of derivative instruments will work as intended. Derivative investments made by the Underlying Fund are included within the Underlying Fund's 80% policy and are calculated at market value.

The Adviser employs the same management, security selection and derivative strategies when the Fund invests directly in the securities, instruments and investments in which the Underlying Fund invests.

The Fund is a non-diversified portfolio of Federated Hermes Managed Pool Series.

The Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in mortgage investments. The Fund will notify shareholders at least 60 days in advance of any change in its investment policy that would enable the Fund to invest, under normal circumstances, less than 80% of its net assets (plus any borrowings for investment purposes) in mortgage investments.

**What are the Main Risks of Investing in the Fund?**

All mutual funds take investment risks. Therefore, it is possible to lose money by investing in the Fund. Shareholders of the Fund will be exposed to the same risks as the Underlying Fund, which broadly consist of the risks of investing in mortgage-backed securities, as well as derivative contracts. The primary factors that may reduce the Fund's and the Underlying Fund's returns include:

◾ **MBS Risk.** A rise in interest rates may cause the value of MBS held by the Fund/Underlying Fund to decline. Certain MBS issued by GSEs are not backed by the full faith and credit of the U.S. government. A non-agency MBS is subject to the risk that the value of such security will decline, because the security is not issued or guaranteed as to principal or interest by the U.S. government or a GSE. The Fund's/Underlying Fund's investments in collateralized mortgage obligations (CMOs) may entail greater market, prepayment and liquidity risks than other MBS.

◾ **Interest Rate Risk.** Prices of fixed-income securities generally fall when interest rates rise. The longer the duration of a fixed-income security, the more susceptible it is to interest-rate risk. Recent and potential future changes in monetary policy made by central banks and/or their governments are likely to affect the level of interest rates.

**2**

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◾ **Risk Related to the Economy.** The value of the Fund's portfolio may decline in tandem with a drop in the overall value of the markets in which the Fund invests and/or other markets. Economic, political and financial conditions, industry or economic trends and developments or public health risks, such as epidemics or pandemics, may, from time to time, and for varying periods of time, cause the Fund to experience volatility, illiquidity, shareholder redemptions, or other potentially adverse effects. Among other investments, lower-grade bonds and loans may be particularly sensitive to changes in the economy.

◾ **Counterparty Risk.** Counterparty risk includes the possibility that a party to a transaction involving the Fund will fail to meet its obligations. This could cause the Fund to lose money or to lose the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategy.

◾ **Credit Risk.** It is possible that borrowers of non-agency MBS in which the Fund/Underlying Fund invests will fail to pay interest or principal on these securities when due, which would result in the Fund/Underlying Fund losing money.

◾ **Prepayment and Extension Risk.** When homeowners prepay their mortgages in response to lower interest rates, the Fund/Underlying Fund will be required to reinvest the proceeds at the lower interest rates available. Also, when interest rates fall, the prices of MBS may not rise to as great an extent as those of other fixed-income securities due to the potential prepayment of higher interest mortgages. When interest rates rise, homeowners are less likely to prepay their mortgages. A decreased rate of prepayments lengthens the expected maturity of a MBS, and the price of MBS may decrease more than the price of other fixed income securities when interest rates rise.

◾ **Risk of Security Downgrades.** The downgrade of the credit of a security held by the Fund/Underlying Fund may decrease its value. Fixed-income securities with lower ratings tend to have a higher probability that a borrower will default or fail to meet its payment obligations.

◾ **Liquidity Risk.** The non-agency MBS and CMOs in which the Fund/Underlying Fund invests may be less readily marketable and may be subject to greater fluctuation in price than other securities.

◾ **Leverage Risk.** Leverage risk is created when an investment exposes the Fund/Underlying Fund to a level of risk that exceeds the amount invested. Changes in the value of such an investment magnify the Fund's/Underlying Fund's risk of loss and potential for gain.

◾ **Risk Transfer Notes Risk.** Risk Transfer Notes may be issued by GSEs and non-GSEs. Non-GSEs are private issuers such as banks or other financial institutions. The risks associated with an investment in Risk Transfer Notes will be different than the risks associated with an investment in MBS. The Notes are the corporate obligations of the issuer and are often not secured by the Reference Obligation, the mortgaged properties or the borrowers' payments under the Reference Obligations. Holders of the Notes are general creditors of the issuer and will be subject to the risk that the issuer will be unable to meet its obligation to pay the principal and interest of the Notes in accordance with their terms of issuance. The Notes may be considered high risk and complex securities.

◾ **Event Linked Bonds and Other Insurance-Linked Securities Risk.** The Fund/Underlying Fund may invest in "event-linked" bonds, which sometimes are referred to as "insurance-linked securities" or ILS. Event-linked bonds are debt obligations for which the return of principal and the payment of interest are contingent on the non-occurrence of a pre-defined "trigger" event, such as an event that leads to physical or economic loss. Event-linked bonds are typically rated by at least one nationally recognized statistical rating agency, but also may be unrated. The rating for an event-linked bond primarily reflects the rating agency's calculated probability that a pre-defined trigger event will occur. This rating also assesses the event-linked bond's credit risk and the model used to calculate the probability of a trigger event.

◾ **Risk of Lease-Backed and Rental-Based MBS.** The market for lease-backed securities and rental-based MBS is new and there may be variation in how the securities are collateralized. By way of nonlimiting example, some structures may afford a bondholder with indirect, limited or even no rights to the underlying real estate. Further, different classes of a particular issue may receive different credit ratings than other classes of the same issue depending upon the level of collateral or distribution of collateral in a default scenario.

◾ **Asset-Backed Securities (ABS) Risk.** The value of asset-backed securities (ABS) may be affected by certain factors, such as interest rate risk, credit risk, prepayment risk and the availability of information concerning the pool of underlying assets and its structure. Under certain market conditions, ABS may be less liquid and may be difficult to value. Movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain types of ABS. ABS can also be subject to the risk of default on the underlying assets.

◾ **Risk of Investing in Derivative Instruments.** The Fund's/Underlying Fund's exposure to derivative contracts and hybrid instruments (either directly or through its investment in another investment company) involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. The use of derivatives can lead to losses because of adverse movements in the price or value of the asset, index, rate or instrument underlying a derivative, due to failure of a counterparty, or the failure of the counterparty to meet its obligations under the contract, or due to tax or regulatory constraints. Derivatives may create investment leverage in the

**3**

------

Fund/Underlying Fund, which magnifies the Fund's/Underlying Fund's exposure to the underlying investment. Derivative instruments may be difficult to value, may be illiquid and may be subject to wide swings in valuation caused by changes in the value of the underlying instrument. Over-the-counter derivative contracts generally carry greater liquidity risk than exchange-traded contracts. The loss on derivative transactions may substantially exceed the initial investment.

◾ **Risk of Non-Diversified Fund.** The Fund is non-diversified. Compared to diversified mutual funds, it may invest a higher percentage of its assets among fewer issuers of portfolio securities. In certain situations, being non-diversified may reduce the Fund's credit risk by enabling it to avoid investing in certain countries, regions or sectors that exhibit above average credit risk. However, being non-diversified may also increase the Fund's risk by magnifying the impact (positively or negatively) that only one issuer has on the Fund's share price and performance.

◾ **Share Ownership Concentration Risk.** A majority of the Underlying Fund's Shares may be held by other mutual funds advised by the Adviser and its affiliates. It also is possible that some or all of these other mutual funds will decide to purchase or redeem shares of the Underlying Fund simultaneously or within a short period of time of one another in order to execute their asset allocation strategies which could have adverse consequences for the Underlying Fund and other shareholders.

◾ **Underlying Fund Risk.** The risk that the Fund's performance is closely related to, the risks associated with the securities and other investments held by the Underlying Funds and that the ability of a Fund to achieve its investment objective will depend upon the ability of the Underlying Funds to achieve their investment objectives. The Fund bears Underlying Fund fees and expenses indirectly.

◾ **Technology Risk.** The Adviser uses various technologies in managing the Fund, consistent with its investment objective and strategy described in this prospectus. For example, proprietary and third-party data and systems are utilized to support decision making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance.

The Shares offered by this Prospectus are not deposits or obligations of any bank, are not endorsed or 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.

**Performance: Bar Chart and Table** 

**Risk/Return Bar Chart**

The bar chart and performance table below reflect historical performance data for the Fund and are intended to help you analyze the Fund's investment risks in light of its historical returns. The bar chart shows the variability of the Fund's Shares total returns on a calendar year-by-year basis. The Average Annual Total Return Table shows returns averaged over the stated periods, and includes comparative performance information. *The Fund's performance will fluctuate, and past performance (before and after taxes) is not necessarily an indication of future results.* Updated performance information for the Fund is available by calling 1-800-341-7400.

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*Within the periods shown in the bar chart, the Fund's highest quarterly return was 2.67% (quarter ended March 31, 2020). Its lowest quarterly return was (5.18)% (quarter ended September 30, 2022).* 

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**Average Annual Total Return Table**

In addition to Return Before Taxes, Return After Taxes is shown for the Fund to illustrate the effect of federal taxes on Fund returns. *Actual after-tax returns depend on each investor's personal tax situation, and are likely to differ from those shown*. After-tax returns are calculated using a standard set of assumptions. The stated returns assume the highest historical **federal** income and capital gains tax rates. These after-tax returns do **not** reflect the effect of any applicable **state** and **local** taxes. After-tax returns are not relevant to investors holding Shares through a 401(k) plan, an Individual Retirement Account or other tax-advantaged investment plans.

(For the Period Ended December 31, 2022)

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| | | | |
|:---|:---|:---|:---|
| **Fund:** | **1 Year** | **5 Years** | **10 Years** |
| Return Before Taxes | (11.54)% | (0.27)% | 0.89% |
| Return After Taxes on Distributions | (12.60)% | (1.43)% | (0.32)% |
| Return After Taxes on Distributions and Sale of Fund Shares | (6.81)% | (0.65)% | 0.17% |
| **Bloomberg US Mortgage-Backed Securities Index**<sup>1</sup><br> (reflects no deduction for fees, expenses or taxes)<br>| (11.81)% | (0.53)% | 0.74% |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*The Bloomberg Mortgage-Backed Securities Index covers agency mortgage-backed pass-through securities (both fixed-rate and hybrid ARM) issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC).*

**FUND MANAGEMENT** 

The Fund's Investment Adviser is Federated Investment Management Company.

Todd A. Abraham, CFA, Senior Portfolio Manager, has been the Fund's portfolio manager since its inception December of 2007.

Liam O'Connell, CFA, Portfolio Manager has been the Fund's portfolio manager since February of 2018.

**Purchase and Sale of Fund Shares** 

There is no required minimum initial or subsequent investment amount to invest in Fund Shares.

Shares of the Fund held for an Eligible Investor (see "How to Invest in the Fund") may be purchased only at the direction of Federated Investment Counseling (FIC), a subsidiary of Federated Hermes, Inc. ("Federated Hermes") or another Discretionary Manager of the Eligible Account (see "How to Invest in the Fund"). Shares of the Fund may be purchased any day the NYSE is open. An account may be established and Shares purchased by submitting an Account Application and purchase request in good order to the Fund's Transfer Agent, SS&C GIDS, Inc. Shares of the Fund may be redeemed any day the NYSE is open. Redemption requests should be made in accordance with procedures established by the Transfer Agent.

**Tax Information** 

The Fund's distributions are taxable as ordinary income or capital gains except when your investment is through a 401(k) plan, an Individual Retirement Account or other tax-advantaged investment plan.

**Payments to DISCRETIONARY MANAGERS AND OTHER FINANCIAL INTERMEDIARIES** 

Shares of the Fund held for an Eligible Investor may be purchased only at the direction of FIC or another Discretionary Manager of the Eligible Account. Discretionary Managers receive no fee from the Fund for their services. If you purchase the Fund through a Discretionary Manager, the Fund and/or its related companies do not pay the Discretionary Manager for the sale of Fund Shares and related services. Ask your salesperson or visit your Discretionary Manager's website for more information.

What are the Fund's Investment Strategies?

The Fund's investment objective is to provide total return by investing primarily in a mortgage-backed securities mutual fund and individual mortgage-backed securities, including collateralized mortgage obligations (CMOs). While there is no assurance that the Fund will achieve its investment objective, it endeavors to do so by following the principal strategies and policies described in this Prospectus. The Fund's Statement of Additional Information (SAI) provides information about the Fund's non-principal strategies.

The Fund pursues its investment objective by investing, under normal market conditions, primarily in Mortgage Core Fund (the "Underlying Fund"), a portfolio of Federated Hermes Core Trust.

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When selecting investments for the Fund, Federated Investment Management Company (the "Adviser" or the "Underlying Fund Adviser") can invest directly in individual securities or may invest in other investment companies, including, for example, the Underlying Fund and other funds advised by the Adviser or its affiliates (together, the "Underlying Funds"). These Underlying Funds may include funds which are not available for general investment by the public. The investment companies in which the Fund invests are managed independently of the Fund and may incur additional expenses. At times the Fund's investment in the Underlying Fund may be a substantial portion of the Fund's portfolio.

The Fund is a non-diversified portfolio of Federated Hermes Managed Pool Series.

The Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in mortgage investments. The Fund will notify shareholders at least 60 days in advance of any change in its investment policy that would enable the Fund to invest, under normal circumstances, less than 80% of its net assets (plus any borrowings for investment purposes) in mortgage investments.

**Temporary Investments** 

The Fund may temporarily depart from its principal investment strategies by investing its assets in shorter-term debt securities and similar obligations or holding cash. It may do this in response to unusual circumstances, such as: adverse market, economic, or other conditions (for example, to help avoid potential losses, or during periods when there is a shortage of appropriate securities); to maintain liquidity to meet shareholder redemptions; or to accommodate cash inflows. It is possible that such investments could affect the Fund's investment returns and/or the ability to achieve the Fund's investment objective.

Information About the Underlying Fund

This section of the Prospectus describes the investment objectives and principal investment strategies of the Underlying Fund. A description of the various types of securities in which the Underlying Fund invests, and the Fund may invest, and the risks, immediately follows this section. The Underlying Fund is managed independently of the Fund.

The investment objective of the Underlying Fund is to provide total return.

The Underlying Fund Adviser manages the portfolio by targeting a dollar-weighted average duration relative to that of the Bloomberg US Mortgage-Backed Securities Index (the "Index").

The Underlying Fund seeks total return, which is defined as income plus capital appreciation. Under normal market conditions, the Underlying Fund invests primarily in mortgage-backed securities (MBS) of investment-grade quality and seeks to provide returns consistent with investments in the market for U.S. home mortgages. A security is considered investment-grade quality if it is either: (i) rated within the four highest ratings categories by at least one nationally recognized statistical rating organization (an NRSRO); or (ii) if unrated, considered by the Underlying Fund Adviser to be of investment-grade quality. The Underlying Fund will invest in MBS that are issued or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises (GSEs). The Underlying Fund may invest in non-agency MBS, which are those not issued or guaranteed by GSEs. The Underlying Fund also may invest in U.S. government securities, asset-backed securities, and certain derivative instruments.

The Underlying Fund typically seeks to maintain an overall average dollar-weighted portfolio duration that is within one year above or below the Index. The average dollar-weighted duration of the Index is approximately 5.81 years as of December 31, 2022. At times, the Underlying Fund Adviser's calculation of portfolio duration may result in variances outside this range. Duration is a measure of the price volatility of a fixed-income security as a result of changes in market rates of interest, based on the weighted average timing of the instrument's expected fixed interest and principal payments. For example, if interest rates rise by 1% (in a parallel shift) the NAV of a fund with an average duration of five years theoretically would decline about 5.0%. Securities with longer durations tend to be more sensitive to interest rate changes than securities with shorter durations.

The Underlying Fund Adviser seeks to create a portfolio, consisting of MBS, derivative instruments and other securities, that outperforms the Index. In implementing the Underlying Fund's investment strategy, the Underlying Fund Adviser typically will take into consideration: (i) overall levels of interest rates; (ii) volatility of interest rates; (iii) relative interest rates of securities with longer and shorter durations (known as a "yield curve"); and (iv) relative interest rates of different types of securities (such as U.S. government securities and MBS).

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Based on fundamental analysis, the Underlying Fund Adviser will consider a variety of factors when making decisions to purchase or sell particular securities or derivative contracts, including: the securities' specific interest rate and prepayment risks; and price sensitivity to changes in market spread levels and in the level of interest rate volatility. In analyzing MBS, the Underlying Fund Adviser also may consider the average interest rates of the underlying loans, the prior and expected prepayments, any ratings issued by NRSROs, and any guarantee of the security or underlying loans by a GSE or non-agency issuer. The Underlying Fund does not limit the amount of its portfolio that may be invested in non-agency MBS.

The Underlying Fund may, but is not required to, use derivative instruments, which are instruments that have a value based on another instrument, exchange rate or index, and may be used as substitutes for securities in which the Underlying Fund can invest, or to hedge against a potential loss in the underlying asset. The Underlying Fund may use futures contracts, options, options on futures (including those relating to interest rates) and swaps as tools in the management of portfolio assets, or other elements of its investment strategy. There can be no assurance that the Underlying Fund's use of derivative instruments will work as intended. Derivative investments made by the Underlying Fund are included within the Underlying Fund's 80% policy (as described below) and are calculated at market value.

The Fund will invest at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in mortgage investments. The Fund will notify shareholders at least 60 days in advance of any change in its investment policy that would enable the Fund to invest, under normal circumstances, less than 80% of its assets (plus the amount of any borrowings for investment purposes) in mortgage investments.

The Fund's Adviser employs the same management, security selection and derivative strategies when the Fund invests directly in the securities, instruments and investments in which the Underlying Fund invests.

What are the Principal Securities in Which the Fund and the Underlying Fund May Invest?

The following provides general information on the Fund's and the Underlying Fund's principal investments. The Fund's Statement of Additional Information (SAI) provides information about the Fund's and the Underlying Fund's non-principal investments and may provide additional information about the Fund's and Underlying Fund's principal investments.

**Fixed-Income Securities** 

The Fund and Underlying Fund may invest in the fixed-income securities described below. The Fund's and Underlying Fund's fixed-income investments may include bonds, notes (including structured notes), mortgage-related securities, asset-backed securities and money market instruments. Fixed-income securities may be issued by: U.S. corporations or entities; U.S. banks; and the U.S. government, its agencies, authorities, instrumentalities or GSEs. These securities may have all types of interest rate payment and reset terms, including fixed-rate, adjustable-rate and zero-coupon.

**Mortgage-Backed Securities (MBS) (A Fixed-Income Security)** 

An MBS is a type of pass-through security, which is a pooled debt obligation repackaged as interests that pass principal and interest through an intermediary to investors. In the case of MBS, the ownership interests are issued by a trust and represent participation interests in pools of adjustable and fixed-rate mortgage loans. MBS are most commonly issued or guaranteed by the U.S. government (or one of its agencies or instrumentalities) ("agency MBS"), but also may be issued or guaranteed by private entities ("non-agency MBS"). Unlike conventional debt obligations, MBS provide monthly payments derived from the monthly interest and principal payments (including any prepayments) made by the individual borrowers on the pooled mortgage loans. Most MBS make these payments monthly; however, certain MBS are backed by mortgage loans which do not generate monthly payments but rather generate payments less frequently.

The mortgage loan collateral for non-agency MBS consists of residential mortgage loans that do not conform to GSE underwriting guidelines. Non-agency MBS generally offer a higher yield than agency MBS because there are no direct or indirect government guarantees of payment.

The non-agency and agency MBS acquired by the Fund and the Underlying Fund could be secured by fixed-rate mortgages, adjustable-rate mortgages or hybrid adjustable-rate mortgages. Adjustable-rate mortgages are mortgages whose interest rates are periodically reset when market rates change. A hybrid adjustable-rate mortgage ("hybrid ARM") is a type of mortgage in which the interest rate is fixed for a specified period and then resets periodically, or floats, for the remaining mortgage term. Hybrid ARMs are usually referred to by their fixed and floating periods. For example, a "5/1 ARM" refers to a mortgage with a five-year fixed interest rate period, followed by 25 annual interest rate adjustment periods.

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The Fund and the Underlying Fund also may invest in collateralized mortgage obligations (CMOs). The two types of CMOs are: (1) MBS that are collateralized by mortgage loans or mortgage pass-through securities; and (2) multi-class pass-through securities, which are interests in a trust composed of mortgage loans or other MBS. CMOs may be issued by U.S. governmental or government-related enterprises, or by private entities, such as banks and others. CMOs are issued in multiple classes, often referred to as "tranches," with each tranche having a specific fixed or floating coupon rate, and stated maturity or final distribution date. CMOs are subject to the uncertainty of the timing of cash flows that results from the rate of prepayments on the underlying mortgages serving as collateral and from the structure of the particular CMO transaction (that is, the priority of the individual tranches). An increase or decrease in prepayment rates (resulting from a decrease or increase in mortgage interest rates) may cause the CMOs to be retired substantially earlier or later than their stated maturities or final distribution dates, and will affect the yields and prices of CMOs.

Mortgage dollar rolls are transactions in which the Fund and the Underlying Fund sell MBS for delivery in the current month with a simultaneous contract entered to repurchase substantially similar (same type, coupon and maturity) securities on a specified future date and price (a "mortgage roll"). During the roll period, the Fund and the Underlying Fund forego principal and interest paid on the MBS. Mortgage dollar roll transactions may be used to seek to increase the Fund's and the Underlying Fund's income. The Fund and the Underlying Fund use repurchase agreements and short-term, fixed-income securities to secure their obligations in these transactions.

Investments in MBS expose the Fund and the Underlying Fund to MBS, interest rate, prepayment and credit risks.

**Asset-Backed Securities (A Type of Fixed-Income Security)** 

Asset-backed securities are securities issued by trusts and special purpose entities that are backed by pools of assets, such as automobile loans and credit-card receivables, and which pass through the payments on the underlying obligations to the security holders (less servicing fees paid to the servicer or fees for any credit enhancement). Typically, the originator of the loan or accounts receivable transfers it to a specially created trust, which repackages it as an issuance of securities with a minimum denomination and a specific term. The securities then are privately placed or publicly offered. Issuers of asset-backed securities may have limited ability to enforce the security interest in the underlying assets, and credit enhancements (if any) may be inadequate in the event of default. Asset-backed securities may take the form of commercial paper, notes or pass-through certificates. Asset-backed securities have prepayment risks, interest rate risks, credit risks, and in certain instances, liquidity risks.

**U.S. Government Securities (A Type of Fixed-Income Security)** 

U.S. government securities include U.S. Treasury obligations, which differ in their yields, maturities and times of issuance, and obligations issued or guaranteed by U.S. government agencies or instrumentalities ("agency obligations"). Agency obligations may be guaranteed by the U.S. government or they may be backed by the right of the issuer to borrow from the U.S. Treasury, the discretionary authority of the U.S. government to purchase the obligations, or the credit of the agency or instrumentality. As a result of their high credit quality and market liquidity, U.S. government securities generally provide lower current yields than obligations of other issuers. While certain U.S. government-sponsored enterprises (such as the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association) may be chartered or sponsored by acts of Congress, their securities are neither issued nor guaranteed by the U.S. Treasury or any other segment of the U.S. government.

**Risk Transfer Notes** 

The Fund and the Underlying Fund may invest in fixed- or floating-rate unsecured general obligations issued from time to time by Freddie Mac, Fannie Mae or other issuers. These obligations are referred to as "Risk Transfer Notes." Typically, such Notes are issued at par and have stated final maturities. Often, the Notes are structured so that: (i) interest is paid directly by the issuer; and (ii) principal is paid by the issuer in accordance with the principal payments and default performance of a certain pool of mortgage loans of either single-family or multi-family properties ("Reference Obligations"). The issuer selects the pool of Reference Obligations based on that issuer's eligibility criteria. The performance of the Notes will be directly affected by the performance of the Reference Obligations selected by the issuer. Such Notes are issued in tranches to which are allocated certain principal repayments and credit losses corresponding to the seniority of the particular tranche. Each tranche of Notes will have credit exposure to the Reference Obligations and the yield to maturity will be directly related to the amount and timing of certain defined credit events on the Reference Obligations, any prepayments by borrowers and any removals of a Reference Obligation from the pool.

While the structure of Risk Transfer Notes mimics the cash flows of a mezzanine securitized tranche, the Notes may not be directly linked to the Reference Obligations. Thus, the payment of principal and interest on the Notes is tied to the performance of the pool of Reference Obligations. However, the actual cash flow from the Reference Obligation may not be made available to the holders of the Notes. This is different than in the case of covered notes, where the issuer default would allow investors to have an additional lien on the underlying loans.

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**Commercial Mortgage-Backed Securities (A Type of Mortgage-Backed Security)** 

Commercial mortgage-backed securities (CMBS) represent interests in mortgage loans on commercial real estate, such as loans for hotels, shopping centers, office buildings and apartment buildings. Generally, the interest and principal payments on these loans are passed on to investors in CMBS according to a schedule of payments. The Fund and Underlying Fund may invest in individual CMBS issues or, alternately, may gain exposure to the overall CMBS market by investing in a derivative contract, the performance of which is related to changes in the value of a domestic CMBS index. The risks associated with CMBS reflect the risks of investing in the commercial real estate securing the underlying mortgage loans and are therefore different from the risks of other types of MBS. Additionally, CMBS expose the Fund and Underlying Fund to interest rate, liquidity and credit risks.

**Lease-Backed Securities and Rental-Based MBS** 

Rental-based MBS are mortgage-backed securities where the underlying properties are rental homes. In rental-based MBS, the mortgage loan or loans may be different in structure from typical owner occupied single family mortgage as the loans may be secured by more than one property and the mortgage loans may have terms and conditions that are different from a typical owner occupied single family home mortgage. The structure of the MBS themselves may also have characteristics that are different than typical MBS. Lease-backed securities are securities whereby the investor cash flows are generated from lease payments on rental properties.

**EVENT-LINKED BONDS AND OTHER INSURANCE-LINKED SECURITIES** 

The Fund and Underlying Fund may invest in "event-linked" bonds, which sometimes are referred to as "insurance-linked securities" or ILS or "catastrophe" bonds. Event-linked bonds are debt obligations for which the return of principal and the payment of interest are contingent on the non-occurrence of a pre-defined "trigger" event. For some event-linked bonds, the trigger event's magnitude may be based on losses to a company or industry, industry indexes or readings of scientific instruments rather than specified actual losses. The Fund and Underlying Fund are entitled to receive principal and interest payments so long as no trigger event occurs of the description and magnitude specified by the instrument. Event-linked bonds may be issued by government agencies, insurance companies, reinsurers, special purpose corporations or other on-shore or off-shore entities. The Fund and Underlying Fund may invest in interests in pooled entities that invest primarily in event-linked bonds.

Event-linked bonds are typically rated by at least one nationally recognized statistical rating agency, but also may be unrated. The rating for an event-linked bond primarily reflects the rating agency's calculated probability that a pre-defined trigger event will occur. This rating also assesses the event-linked bond's credit risk and the model used to calculate the probability of a trigger event.

In addition to event-linked bonds, the Fund and Underlying Fund may also invest in other insurance-linked securities, including structured reinsurance instruments such as quota share instruments (a form of proportional reinsurance whereby an investor participates in the premiums and losses of a reinsurer's portfolio of catastrophe-oriented policies, sometimes referred to as "reinsurance sidecars") and collateralized reinsurance investments, industry loss warranties, and other insurance- and reinsurance-related securities. Quota share instruments and other structured reinsurance instruments generally will be considered illiquid securities by the Fund and Underlying Fund.

**DERIVATIVE CONTRACTS** 

Derivative contracts are financial instruments that derive their value from underlying securities, commodities, currencies, indices, or other assets or instruments, including other derivative contracts (each a "Reference Instrument" and collectively, "Reference Instruments"). The most common types of derivative contracts are swaps, futures and options, and major asset classes include interest rates, equities, commodities and foreign exchange. Each party to a derivative contract may sometimes be referred to as a "counterparty." Some derivative contracts require payments relating to an actual, future trade involving the Reference Instrument. These types of derivatives are frequently referred to as "physically settled" derivatives. Other derivative contracts require payments relating to the income or returns from, or changes in the market value of, a Reference Instrument. These types of derivatives are known as "cash-settled" derivatives since they require cash payments in lieu of delivery of the Reference Instrument.

Many derivative contracts are traded on exchanges. In these circumstances, the relevant exchange sets all the terms of the contract except for the price. Parties to an exchange-traded derivative contract make payments through the exchange. Most exchanges require traders to maintain margin accounts through their brokers to cover their potential obligations to the exchange. Parties to the contract make (or collect) daily payments to the margin accounts to reflect losses (or gains) in the value of their contracts. This protects traders against a potential default by their counterparty. Trading contracts on an exchange also allows traders to hedge or mitigate certain risks or carry out more complex trading strategies by entering into offsetting contracts.

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The Fund may also trade derivative contracts over-the-counter (OTC), meaning off-exchange, in transactions negotiated directly between the Fund and an eligible counterparty, which may be a financial institution. OTC contracts do not necessarily have standard terms, so they may be less liquid and more difficult to close out than exchange-traded derivative contracts. In addition, OTC contracts with more specialized terms may be more difficult to value than exchange-traded contracts, especially in times of financial stress.

The market for swaps and other OTC derivatives was largely unregulated prior to the enactment of federal legislation known as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"). Regulations enacted by the Commodity Futures Trading Commission (the "CFTC") under the Dodd-Frank Act require the Fund to clear certain types of swap contracts (including certain interest rate and credit default swaps) through a central clearinghouse known as a derivatives clearing organization (DCO).

To clear a swap through a DCO, the Fund will submit the contract to, and post margin with, a futures commission merchant (FCM) that is a clearinghouse member. The Fund may enter into the swap with a counterparty other than the FCM and arrange for the contract to be transferred to the FCM for clearing or enter into the contract with the FCM itself. If the Fund must centrally clear a transaction, the CFTC's regulations also generally require that the swap be executed on a registered exchange (either a designated contract market (DCM) or swap execution facility (SEF)). Central clearing is presently required only for certain swaps; the CFTC is expected to impose a mandatory central clearing requirement for additional derivative instruments over time.

DCOs, DCMs, SEFs and FCMs are all subject to regulatory oversight by the CFTC. In addition, certain derivative market participants that act as market makers and engage in a significant amount of "dealing" activity are also required to register as swap dealers with the CFTC. Among other things, swap dealers are subject to minimum capital requirements and business conduct standards and must also post and collect initial and variation margin on uncleared swaps with certain of their counterparties. Because of this, if the Fund enters into uncleared swaps with any swap dealers, it may be subject to initial and variation margin requirements that could impact the Fund's ability to enter into swaps in the OTC market, including making transacting in uncleared swaps significantly more expensive.

At this point in time, most of the Dodd-Frank Act has been fully implemented, though a small number of remaining rulemakings are unfinished or are subject to phase-in periods. Any future regulatory or legislative activity would not necessarily have a direct, immediate effect upon the Fund, though it is within the realm of possibility that, upon implementation of these measures or any future measures, they could potentially limit or completely restrict the ability of the Fund to use these instruments as a part of its investment strategy, increase the costs of using these instruments or make them less effective.

Depending on how the Fund uses derivative contracts and the relationships between the market value of a derivative contract and the Reference Instrument, derivative contracts may increase or decrease the Fund's exposure to the risks of the Reference Instrument and may also expose the Fund to liquidity and leverage risks. OTC contracts also expose the Fund to credit risks in the event that a counterparty defaults on the contract, although this risk may be mitigated by submitting the contract for clearing through a DCO, or certain other factors, such as collecting margin from the counterparty.

As discussed above, a counterparty's exposure under a derivative contract may in some cases be required to be secured with initial and/or variation margin (a form of "collateral").

The Fund may invest in a derivative contract if it is permitted to own, invest in, or otherwise have economic exposure to the Reference Instrument. The Fund is not required to own a Reference Instrument in order to buy or sell a derivative contract relating to that Reference Instrument. The Fund may trade in the following specific types and/or combinations of derivative contracts:

**Investing in Securities of Other Investment Companies** 

The Fund may invest its assets in securities of other investment companies, including the securities of affiliated money market funds, as an efficient means of implementing its investment strategies, managing its uninvested cash and/or other investment reasons consistent with the Fund's investment objective and investment strategies. The Fund may also invest in MBS primarily by investing in another investment company (which is not available for general investment by the public) that owns those securities and that is advised by an affiliate of the Adviser. The Fund may also invest in such securities directly. These other investment companies are managed independently of the Fund and incur additional fees and/or expenses which would, therefore, be borne indirectly by the Fund in connection with any such investment. These investments also can create conflicts of interests for the Adviser to the Fund and the investment adviser to the acquired fund. For example, a conflict of interest can arise due to the possibility that the Adviser to the Fund could make a decision to redeem the Fund's investment in the acquired fund. In the case of an investment in an affiliated fund, a conflict of interest can arise if, because of the Fund's investment in the acquired fund, the acquired fund is able to garner more assets, thereby growing the acquired fund and increasing the management fees received by the investment adviser to the acquired

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fund, which would either be the Adviser or an affiliate of the Adviser. However, the Adviser believes that the benefits and efficiencies of making investments in other investment companies should outweigh the potential additional fees and/or expenses and resulting conflicts of interest. In light of the Fund's investments in other investment companies, other registered investment companies may be limited in their ability to invest in the Fund.

**OTHER INVESTMENTS, TRANSACTIONS, TECHNIQUES**

**Derivatives Regulation and Asset Coverage** 

The regulation of the U.S. and non-U.S. derivatives markets has undergone substantial change in recent years and such change may continue. In addition, effective August 19, 2022, Rule 18f-4 (the "Derivatives Rule") under the Investment Company Act of 1940, as amended (the "1940 Act"), replaced the asset segregation framework previously used by funds to comply with limitations on leverage imposed by the 1940 Act. The Derivatives Rule generally mandates that a fund either limit derivatives exposure to 10% or less of its net assets, or in the alternative implement: (i) limits on leverage calculated based value-at-risk (VAR); (ii) a written derivatives risk management program (DRMP) administered by a derivatives risk manager appointed by the Fund's Board, including a majority of the independent Board members, that is periodically reviewed by the Board; and (iii) new reporting and recordkeeping requirements.

As the Fund's derivative exposure, if any, is 10% or less of its net assets, excluding certain currency and interest rate hedging transactions, the Fund is classified as a limited derivatives user under the Derivatives Rule and will not be subject to the full requirements of the Derivatives Rule as noted above, including VAR testing and stress testing and certain Board reporting requirements. However, the Fund is still required to implement written compliance policies and procedures reasonably designed to manage its derivatives risks and monitor its derivatives exposure daily.

**Investment Ratings for Investment-Grade Securities** 

The Adviser will determine whether a security is investment grade based upon the credit ratings given by one or more NRSROs. For example, Standard & Poor's, an NRSRO, assigns ratings to investment-grade securities (AAA, AA, A and BBB including modifiers, sub-categories and gradations) based on their assessment of the likelihood of the issuer's inability to pay interest or principal (default) when due on each security. Lower credit ratings correspond to higher credit risk. If a security has not received a rating, the Fund must rely entirely upon the Adviser's credit assessment that the security is comparable to investment grade. The presence of a ratings modifier, sub-category or gradation (for example, a (+) or (-)) is intended to show relative standing within the major rating categories and does not affect the security credit rating for purposes of the Fund's investment parameters. If a security is downgraded below the minimum quality grade discussed above, the Adviser will reevaluate the security, but will not be required to sell it.

**Additional Information Regarding the Security Selection Process** 

As part of analysis in its security selection process, among other factors, the Adviser also evaluates whether environmental, social and governance factors could have a positive or negative impact on the risk profiles of many issuers or guarantors in the universe of securities in which the Fund may invest. The Adviser may also consider information derived from active engagements conducted by its in-house stewardship team with certain issuers or guarantors on environmental, social and governance topics. This qualitative analysis does not automatically result in including or excluding specific securities but may be used by Federated Hermes as an additional input in its primary analysis.

**Repurchase Agreements** 

Repurchase agreements are transactions in which the Fund and Underlying Fund buy a security from a dealer or bank and agrees to sell the security back at a mutually agreed-upon time and price. The repurchase price exceeds the sale price, reflecting the Fund's and Underlying Fund's return on the transaction. This return is unrelated to the interest rate on the underlying security. The Fund and Underlying Fund will enter into repurchase agreements only with banks and other recognized financial institutions, such as securities dealers, deemed creditworthy by the Fund's and Underlying Fund's Adviser.

The Fund's and Underlying Fund's custodian or subcustodian will take possession of the securities subject to repurchase agreements. The Fund's and Underlying Fund's Adviser or subcustodian will monitor the value of the underlying security each day to ensure that the value of the security always equals or exceeds the repurchase price.

Repurchase agreements are subject to credit risks. The Fund and Underlying Fund invest in overnight repurchase agreements in order to maintain sufficient cash to pay for daily net redemptions and portfolio transactions. The Fund and Underlying Fund use repurchase agreements to secure its obligations in connection with mortgage dollar roll transactions.

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What are the Specific Investment Risks of the Fund and the Underlying Fund?

The following provides general information on the risks associated with the types of securities and other investments in which the Fund and the Underlying Fund principally invest. The Fund and the Underlying Fund may invest in other types of securities or investments as non-principal investments. Any additional risks associated with investing in such other non-principal investments are described in the Fund's SAI. The Fund's SAI also may provide additional information about the risks associated with the types of securities in which the Fund and the Underlying Fund principally invest.

**MBS Risk** 

MBS have unique risks. A rise in interest rates may cause the value of MBS held by the Fund and the Underlying Fund to decline. The mortgage loans underlying MBS generally are subject to a greater rate of principal prepayments in a declining interest rate environment and to a lesser rate of principal prepayments in an increasing interest rate environment. If the underlying mortgages are paid off sooner than expected, the Fund and the Underlying Fund may have to reinvest this money in mortgage-backed or other securities that have lower yields. Hybrid ARMs also involve special risks. Like ARMs, hybrid ARMs have periodic and lifetime limitations on the increases that can be made to the interest rates that mortgagors pay. Therefore, if during a floating rate period, interest rates rise above the interest rate limits of the hybrid ARM, the Fund and the Underlying Fund will not benefit from further increases in interest rates. See "Prepayment Risk" and "Interest Rate Risk." CMOs with complex or highly variable prepayment terms generally entail greater market, prepayment and liquidity risks than other MBS. For example, their prices are more volatile and their trading market may be more limited.

MBS are subject to the risk that payments made on a security will not be made when due. Payments on MBS are primarily derived from the interest and principal payments of the underlying mortgages. Some MBS also have guarantees or other structural features that provide additional support for interest and principal payments on the MBS if payments on the underlying mortgages are not made. MBS are subject to the risk that the underlying mortgage borrowers fail to make timely payments of interest and principal and that any guarantee or other structural feature, if present, is insufficient to enable the timely payment of interest and principal on the MBS. The structure of certain CMO interests held by the Fund or the Underlying Fund may cause the Fund or the Underlying Fund to be paid in interest and/or principal on its investment only after holders of other interests in that particular CMO have received the full repayment of principal or interest on their investments. MBS are most commonly issued or guaranteed by GSEs, but also may be issued or guaranteed by private entities, which generally entail greater risk. Certain MBS issued by GSEs are not backed by or entitled to the full faith and credit of the U.S. government, but are, however, supported through federal subsidies, loans or other benefits. The Fund and the Underlying Fund also may invest in certain MBS issued by GSEs that have no explicit financial support and are supported only by the credit of the applicable GSEs (in addition to the underlying mortgages and related debt service payments). The U.S. government has provided financial support to Freddie Mac and Fannie Mae, but there is no assurance that it will support these or other GSEs in the future. Although certain MBS are guaranteed as to timely payment of interest and principal by a GSE, the market prices for such securities are not guaranteed and will fluctuate. See "Credit Risk."

**INTEREST RATE RISK** 

Prices of fixed-income securities rise and fall in response to changes in interest rates. Generally, when interest rates rise, prices of fixed-income securities fall. However, market factors, such as the demand for particular fixed-income securities, may cause the price of certain fixed-income securities to fall while the prices of other securities rise or remain unchanged.

The longer the duration of a fixed-income security, the more susceptible it is to interest rate risk. The duration of a fixed-income security may be equal to or shorter than the stated maturity of a fixed income security. Recent and potential future changes in monetary policy made by central banks and/or their governments are likely to affect the level of interest rates. Duration measures the price sensitivity of a fixed-income security given a change in interest rates. For example, if a fixed-income security has an effective duration of three years, a 1% increase in general interest rates would be expected to cause the security's value to decline about 3% while a 1% decrease in general interest rates would be expected to cause the security's value to increase about 3%.

**RISK RELATED TO THE ECONOMY** 

The value of the Fund's portfolio may decline in tandem with a drop in the overall value of the markets in which the Fund invests and/or other markets based on negative developments in the United States and global economies. Economic, political and financial conditions, or industry or economic trends and developments, may, from time to time, and for varying periods of time, cause volatility, illiquidity or other potentially adverse effects in the financial markets, including the fixed-income market. The commencement, continuation or ending of government policies and economic stimulus programs, changes in monetary policy, increases or decreases in interest rates, or other factors or events that affect the financial markets, including the fixed-income markets, may contribute to the development of or increase in volatility,

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illiquidity, shareholder redemptions and other adverse effects which could negatively impact the Fund's performance. For example, the value of certain portfolio securities may rise or fall in response to changes in interest rates, which could result from a change in government policies, and has the potential to cause investors to move out of certain portfolio securities, including fixed-income securities, on a large scale. This may increase redemptions from funds that hold large amounts of certain securities and may result in decreased liquidity and increased volatility in the financial markets. Market factors, such as the demand for particular portfolio securities, may cause the price of certain portfolio securities to fall while the prices of other securities rise or remain unchanged. Among other investments, lower-grade bonds may be particularly sensitive to changes in the economy.

**Epidemic and Pandemic Risk** 

An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread globally. 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, 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 instruments. Any such impact could adversely affect the Fund's performance.

**Counterparty Risk** 

Counterparty risk includes the possibility that a party to a transaction involving the Fund will fail to meet its obligations. This could cause the Fund to lose money or to lose the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategy.

**CREDIT RISK** 

Fixed-income securities in which the Fund and Underlying Fund invest are subject to the risk of non-payment of scheduled principal and interest. Changes in economic conditions or other circumstances may reduce the capacity of the party obligated to make principal and interest payments on such instruments when due, which may lead to defaults on such payments. Such non-payments and defaults may reduce the value of Fund and Underlying Fund shares and income distributions. Many fixed-income securities receive credit ratings from NRSROs that assign ratings to securities by assessing the likelihood of an issuer and/or guarantor default. Higher credit ratings correspond to lower perceived credit risk and lower credit ratings correspond to higher perceived credit risk. Credit ratings may be upgraded or downgraded from time to time as an NRSRO's assessment of the financial condition of a party obligated to make payments with respect to such securities and credit risk changes. The impact of any downgrade in a credit rating can be uncertain. Credit rating downgrades may lead to increased interest rates and volatility in financial markets, which in turn could negatively affect the value of the Fund's portfolio holdings, its share price and its investment performance. Credit ratings are not a guarantee of quality. Credit ratings may lag behind the current financial conditions of the issuer and/or guarantor and do not provide assurance against default or other loss of money. Credit ratings do not protect against a decline in the value of a security.

**PREPAYMENT and extension RISK** 

Unlike traditional fixed-income securities, which pay a fixed rate of interest until maturity (when the entire principal amount is due), payments on MBS include both interest and a partial payment of principal. Partial payment of principal may be comprised of scheduled principal payments, as well as unscheduled payments from the voluntary prepayment, refinancing or foreclosure of the underlying loans. These unscheduled prepayments of principal create risks that can adversely affect the Fund's and Underlying Fund's MBS holdings.

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The mortgage loans underlying MBS are generally subject to a greater rate of principal prepayments in a declining interest rate environment and to a lesser rate of principal prepayments in a rising interest rate environment. Under certain interest and prepayment rate scenarios, the Fund and Underlying Fund may fail to recover the full amount of its investment in MBS, notwithstanding any direct or indirect governmental or agency guarantee. Because faster-than-expected prepayments typically are invested in lower yielding securities, MBS are less effective than conventional bonds in "locking in" a specified yield rate. For premium bonds, prepayment risk may be elevated. In a rising interest rate environment, a declining prepayment rate will extend the average life of many MBS. This possibility is often referred to as extension risk. Extending the average life of an MBS increases the risk of depreciation due to future increases in market interest rates.

**RISK OF SECURITY DOWNGRADES** 

An investment-grade security held by the Fund and Underlying Fund may be downgraded to below investment grade after the Fund and Underlying Fund have acquired the security. In the event that the credit rating of a security held by the Fund and Underlying Fund is downgraded, the credit quality deteriorates after purchase or the security defaults, the Fund and Underlying Fund will not be obligated to dispose of that security and may continue to hold the security if, in the opinion of the Adviser, such investment is appropriate in the circumstances, although it may choose to do so in the sole discretion of the Adviser. The downgrade of the credit of a security held by the Fund and Underlying Fund may decrease its value. Fixed-income securities with lower ratings tend to have a higher probability that a borrower will default or fail to meet its payment obligations.

**LIQUIDITY RISK** 

The secondary market for some securities held by the Fund and Underlying Fund is less liquid than for more widely traded fixed-income securities. In certain situations, the Fund and Underlying Fund could find it more difficult to sell such securities at desirable times and/or prices. Liquidity risk also refers to the possibility that the Fund and Underlying Fund may not be able to sell a security or close out a derivative contract when it wants to. If this happens, the Fund and Underlying Fund will be required to continue to hold the security or keep the position open, and the Fund and Underlying Fund could incur losses.

**LEVERAGE RISK** 

Leverage risk is created when an investment, which includes, for example, an investment in a derivative contract, exposes the Fund and Underlying Fund to a level of risk that exceeds the amount invested. Changes in the value of such an investment magnify the Fund's and Underlying Fund's risk of loss and potential for gain. Investments can have these same results if their returns are based on a multiple of a specified index, security or other benchmark.

**RISK TRANSFER NOTES RISK** 

Risk Transfer Notes may be issued by GSEs and non-GSEs. Non-GSEs are private issuers such as banks or other financial institutions. The risks associated with an investment in Risk Transfer Notes will be different than the risks associated with an investment in MBS. The Notes are the corporate obligations of the issuer and are often not secured by the Reference Obligation, the mortgaged properties or the borrowers' payments under the Reference Obligations. Holders of the Notes are general creditors of the issuer and will be subject to the risk that the issuer will be unable to meet its obligation to pay the principal and interest of the Notes in accordance with their terms of issuance. The Notes may be considered high risk and complex securities.

**Event Linked Bonds and other insurance-linked securities Risk** 

The Fund may invest in "event-linked" bonds, which sometimes are referred to as "insurance-linked securities" or ILS. Event-linked bonds are debt obligations for which the return of principal and the payment of interest are contingent on the non-occurrence of a pre-defined "trigger" event, such as an event that leads to physical or economic loss. Event-linked bonds are typically rated by at least one nationally recognized statistical rating agency, but also may be unrated. The rating for an event-linked bond primarily reflects the rating agency's calculated probability that a pre-defined trigger event will occur. This rating also assesses that event-linked bond's credit risk and the model used to calculate the probability of a trigger event.

**RISK OF LEASE-BACKED SECURITIES AND RENTAL-BASED MBS** 

The market for lease-backed securities and rental-based MBS is new and there may be variation in how the securities are collateralized. By way of nonlimiting example, some structures may afford a bondholder with indirect, limited or even no rights to the underlying real estate. Further, different classes of a particular issue may receive different credit ratings than other classes of the same issue depending upon the level of collateral or distribution of collateral in a default scenario. Several factors may adversely affect the performance of an investment in these lease-backed securities and rental-based

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MBS. First, the renters of the pooled properties underlying the securities generally sign monthly or yearly leases, increasing the likelihood of the renters canceling their leases. As a result, renters have the opportunity to not renew their leases, which would result in decreased payments being made into the pooled structure. Second, renters may also have low incentive for paying their rent on time. Finally, there is risk related to the ability of large institutional investors to manage rental homes where there are potentially greater maintenance costs given the lack of construction uniformity.

**ASSET-BACKED SECURITIES (ABS) Risk** 

The value of asset-backed securities (ABS) may be affected by certain factors such as interest rate risk, the availability of information concerning the pool of underlying assets and its structure, the creditworthiness of the servicing agent for the pool or the originator of the underlying assets and the ability of the servicing agent to service the underlying collateral. Under certain market conditions, ABS may be less liquid and may be difficult to value. Movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain types of ABS

**RISK OF INVESTING IN DERIVATIVE INSTRUMENTS** 

The Fund's and Underlying Fund's exposure to derivative contracts and hybrid instruments (either directly or through its investment in another investment company) involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. The use of derivatives can lead to losses because of adverse movements in the price or value of the asset, index, rate or instrument underlying a derivative, due to failure of a counterparty, or the failure of the counterparty to meets its obligations under the contract, or due to tax or regulatory constraints. Derivatives may create investment leverage in the Fund and Underlying Fund, which magnifies the Fund's and Underlying Fund's exposure to the underlying investment. Derivative risks may be more significant when derivatives are used to enhance return or as a substitute for a position or security, rather than solely to hedge the risk of a position or security held by the Fund and Underlying Fund. Derivatives used for hedging purposes may not reduce risk if they are not sufficiently correlated to the position being hedged. A decision as to whether, when and how to use options involves the exercise of specialized skill and judgment, and even a well-conceived transaction may be unsuccessful to some degree because of market behavior or unexpected events. Derivative instruments may be difficult to value, may be illiquid and may be subject to wide swings in valuation caused by changes in the value of the underlying instrument. OTC derivative contracts generally carry greater liquidity risk than exchange-traded contracts. This risk may be increased in times of financial stress, if the trading market for OTC derivative contracts becomes restricted. The loss on derivative transactions may substantially exceed the initial investment.

**RISK OF NON-DIVERSIFIED FUND** 

The Fund is non-diversified. Compared to diversified mutual funds, it may invest a higher percentage of its assets among fewer issuers of portfolio securities. In certain situations, being non-diversified may reduce the Fund's credit risk by enabling it to avoid investing in certain countries, regions or sectors that exhibit above average credit risk. However, being non-diversified may also increase the Fund's risk by magnifying the impact (positively or negatively) that only one issuer has on the Fund's share price and performance.

**Share Ownership Concentration Risk** 

A majority of the Fund's Shares may be held by other mutual funds advised by the Adviser and its affiliates. It also is possible that some or all of these other mutual funds will decide to purchase or redeem Shares of the Fund simultaneously or within a short period of time of one another in order to execute their asset allocation strategies. Accordingly, there is a risk that the Share trading activities of these shareholders could disrupt the Fund's investment strategies which could have adverse consequences for the Fund and other shareholders (e.g., by requiring the Fund to sell investments at inopportune times or causing the Fund to maintain larger-than-expected cash positions pending acquisition of investments). Investments in the Fund by other investment companies also can create conflicts of interests for the Adviser to the Fund and the investment adviser to the acquiring fund. For example, a conflict of interest can arise due to the possibility that the investment adviser to the acquiring fund could make a decision to redeem the acquiring fund's investment in the Fund.

**UNDERLYING FUND RISK** 

The risk that the Fund's performance is closely related to the risks associated with the securities and other investments held by underlying funds and that the ability of a Fund to achieve its investment objective will depend upon the ability of underlying funds to achieve their respective investment objectives. The Fund bears Underlying Fund fees and expenses indirectly.

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**technology Risk** 

The Adviser uses various technologies in managing the Fund, consistent with its investment objective(s) and strategy described in this Prospectus. For example, proprietary and third-party data and systems are utilized to support decision-making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance.

How to Invest in the Fund

The Fund is used to implement fixed-income investment strategies for investors in wrap fee, separately managed and other discretionary investment accounts that are advised or sub-advised by Federated Investment Counseling (FIC), a subsidiary of Federated Hermes, or its affiliates, or certain other third-party discretionary managers that have a business relationship with FIC as described below. The Fund is advised by Federated Investment Management Company (the "Adviser"), another subsidiary of Federated Hermes, and an affiliate of FIC.

For purposes of this Prospectus: (1) the fixed-income investment strategies implemented through investments in the Fund are referred to as the "Fixed-Income Strategies"; (2) the investors in the wrap fee, separately managed and other discretionary investment accounts that may be permitted to invest in the Fund are referred to as "Eligible Investors"; (3) the wrap fee, separately managed and other discretionary investment accounts in which Eligible Investors may invest are referred to as "Eligible Accounts"; and (4) FIC, its affiliates and any other third-party discretionary managers that may invest Eligible Investors' assets in the Fund are referred to as "Discretionary Managers."

Eligible Investors in the Fund do not include investment companies under the Investment Company Act of 1940 ("1940 Act"), as amended, or private funds exempt from registration under the 1940 Act pursuant to Sections 3(c)(1) or 3(c)(7) of the 1940 Act, unless appropriate exemptive relief is obtained under the 1940 Act and the Fund determines to accept the purchase order for such an investment. In addition, unless the Fund determines to accept a purchase order for an investment, an Eligible Investor in the Fund does not include: (i) a non-resident alien within the meaning of I.R.C. § 7701(b)(1)(B) who is a natural person; (ii) a covered expatriate (i.e., a U.S. citizen temporarily residing abroad) within the meaning of I.R.C. § 877A(g)(1)(A); (iii) a foreign institutional investor; or (iv) a fund or investor in the European Union.

At any time that an investor in the Fund ceases to be an Eligible Investor and FIC (or its affiliate) is acting in a discretionary capacity, the Fund will redeem the Fund's Shares held by such investor. At any time that an investor in the Fund (through a relationship with a third-party discretionary manager that has a business relationship with FIC (or its affiliate)) ceases to be an Eligible Investor, the third-party discretionary manager will redeem the Fund's Shares held by such investor. In all circumstances, Federated Securities Corp. reserves the right to authorize the liquidation of shares for ineligible investors.

The Fixed-Income Strategies may include investments in individual securities, as well as shares of the Fund ("Shares"), depending upon the type of Eligible Account, the applicable investment objectives, restrictions and investment mandate of an Eligible Investor, instructions provided by an Eligible Investor or Discretionary Manager or other relevant factors. The Fund is designed to purchase securities required for the Fixed-Income Strategies that cannot be efficiently held individually in Eligible Accounts, but can be effectively held in a pooled vehicle, such as a mutual fund.

When the Fund is used to implement Fixed-Income Strategies for wrap fee and separately managed accounts, the wrap fee program sponsors or separately managed account managers typically will have contracts with Eligible Investors to provide investment management, custody and/or other services to Eligible Investors in connection with investments in Eligible Accounts. Eligible Investors typically will pay negotiated asset-based fees, which may vary, for the services. In wrap fee programs, the fees generally will be aggregated or "bundled." FIC, or an affiliate, will be engaged as an adviser or sub-adviser to manage, on a discretionary basis, assets of the Eligible Investors invested in the Eligible Accounts in accordance with one or more Fixed-Income Strategies developed by FIC or an affiliate. FIC, or an affiliate, typically will receive negotiated asset-based investment advisory fees for managing the Eligible Investors' assets and performing other administrative services. These fees received by FIC or an affiliate, may vary between wrap fee program sponsors and/or separately managed account managers, and typically will be paid out of the aggregated fees charged to Eligible Investors by the wrap fee program sponsors and/or separately managed account managers. The fees received by FIC, or an affiliate, will be paid for separate account advisory services which are separate from the Adviser's management of the Fund. Where FIC, or an affiliate, will be the Discretionary Manager for Eligible Accounts of Eligible Investors, FIC, or an affiliate, will implement the applicable Fixed-Income Strategies through, among other possible investments, purchasing and redeeming Shares of the Fund on behalf of the Eligible Investors. In such cases, the Fund will be used to implement certain investment strategies offered by FIC, including an investment strategy for Eligible Accounts. The Adviser does not charge a fee for its advisory services to the Fund and has contractually agreed to reimburse all operating expenses, excluding extraordinary expenses, incurred by the Fund. However, as discussed above in "Investing in Securities of Other Investment Companies," the Fund may invest its assets in securities of other investment companies, including the

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securities of affiliated money market funds, as an efficient means of implementing its investment strategies, managing its uninvested cash and/or other investment reasons consistent with the Fund's investment objective and investment strategies. For example, the Fund may decide to have any excess cash swept on a daily basis into an affiliated money market fund. These other investment companies are managed independently of the Fund and incur additional fees and/or expenses which would, therefore, be borne indirectly by the Fund in connection with any such investment.

If the Fund is used to implement Fixed-Income Strategies for other separately managed or discretionary investment accounts, FIC, or an affiliate, will not manage, on a discretionary basis, the accounts of the Eligible Investors invested in these types of Eligible Accounts. The Discretionary Managers of the Eligible Investors' accounts will be third-party discretionary managers. These Discretionary Managers typically will have contracts with Eligible Investors to provide investment management, custody and/or other services to Eligible Investors in connection with investments in these Eligible Accounts. Eligible Investors typically will pay negotiated asset-based fees, which may vary, for the services. These Discretionary Managers will be engaged as advisers or sub-advisers to manage, on a discretionary basis, assets of the Eligible Investors invested in these Eligible Accounts in accordance with one or more Fixed-Income Strategies developed by these Discretionary Managers. These Discretionary Managers will have separate contracts with FIC, or an affiliate, to provide these Discretionary Managers with one or more model portfolios for Fixed-Income Strategies developed by FIC or an affiliate, as well as recommendations for updates to the model portfolios. These Discretionary Managers will use the model portfolios, and recommended updates, at their discretion to develop the Discretionary Managers' Fixed-Income Strategies. FIC, or an affiliate, will not have discretionary authority over Eligible Investors' accounts. As compensation for providing the model portfolios and recommended updates, FIC, or an affiliate, typically will receive negotiated asset-based fees, which will be determined based on the amount of assets under management these Discretionary Managers manage in accordance with their Fixed-Income Strategies that they develop using the model portfolios, and recommended updates, provided by FIC or an affiliate. These fees received by FIC or an affiliate, may vary between Discretionary Managers, and will be paid to FIC, or an affiliate, by these Discretionary Managers. The fees received by FIC, or an affiliate, will be paid for services separate from the Adviser's management of the Fund. These Discretionary Managers will have the option to implement their Fixed-Income Strategies through, among other possible investments, purchasing and redeeming Shares of the Fund on behalf of the Eligible Investors.

Shareholders of the Fund, as Eligible Investors, are strongly encouraged to read carefully the wrap fee brochure or other disclosure documents provided to them in connection with their investments in wrap fee, separately managed or other discretionary investment accounts (i.e., the Eligible Accounts). To the extent that an Eligible Investor has imposed investment restrictions on its Eligible Accounts, the Fund may hold investments that are inconsistent with the Eligible Investor's investment restrictions. These brochures and disclosure documents will contain information about the fees charged to Eligible Investors in connection with their investments in the Eligible Accounts. These brochures and other disclosure documents will contain information about the fees paid or received by the wrap fee program sponsors, or Discretionary Managers or other third-parties, to or from FIC, or its affiliates, in connection with the Eligible Investors' investments in the Eligible Accounts. These brochures and disclosure documents also will contain other important information regarding the Discretionary Managers and Eligible Accounts, such as minimum Eligible Account sizes. Shareholders of the Fund, as Eligible Investors, pay no additional fees or expenses to purchase Shares of the Fund.

To the extent permitted under applicable law, the Fund may also be used as an investment option for other investment companies managed by the Adviser or an affiliate. These other investment companies are referred to in this Prospectus as "Affiliated Funds." As a result, at any time, shareholders of the Fund may include Eligible Investors and, to the extent permitted under applicable law, Affiliated Funds.

Shares of the Fund held by an Eligible Investor may be purchased or redeemed only at the direction of FIC or another Discretionary Manager of the Eligible Account. To the extent the Fund is permitted as an investment option for an Affiliated Fund, Shares also may be purchased and redeemed at the discretion of an Affiliated Fund's adviser. Shares can be purchased or redeemed on any day the New York Stock Exchange (NYSE) is open.

What Do Shares Cost?

**CALCULATION OF NET ASSET VALUE**

When the Fund receives a transaction request in proper form (as described in this Prospectus under the sections entitled "How to Purchase Shares" and "How to Redeem Shares"), it is processed at the next calculated net asset value of a Share (NAV). A Share's NAV is determined as of the end of regular trading on the New York Stock Exchange (NYSE) (normally 4:00 p.m. Eastern time) each day the NYSE is open. The Fund calculates the NAV by valuing its assets, subtracting its liabilities, and dividing the balance by the number of Shares outstanding. The Fund's current NAV and/or public offering price may be found at FederatedInvestors.com, via online news sources and in certain newspapers.

Eligible Investors can purchase, redeem or exchange Shares any day the NYSE is open.

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When the Fund holds fixed-income securities that trade on days the NYSE is closed, the value of the Fund's assets may change on days you cannot purchase or redeem Shares.

Valuation of Portfolio Securities by the Fund and the Underlying Fund

Each of the Fund and the Underlying Fund generally values portfolio securities in calculating NAV as follows:

◾ Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Adviser.

◾ 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.

◾ OTC derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser.

If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund and the Underlying 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, or if information furnished by a pricing service, in the opinion of the Valuation Committee, is deemed not representative of the fair value of such security, the Fund and the Underlying Fund use the fair value of the investment determined in accordance with the procedures generally described below. There can be no assurance that the Fund and the Underlying Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund and the Underlying Fund determine its NAV per share.

Shares of other mutual funds are valued based upon their reported NAVs. The prospectuses for these mutual funds explain the circumstances under which they will use fair value pricing and the effects of using fair value pricing.

**Fair Valuation** 

Pursuant to Rule 2a-5 under the Investment Company Act of 1940, the Board has designated the Adviser as the Fund's and Underlying Fund's valuation designee to perform the fair valuation determination for securities and other assets held by the Fund. 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 subject to Board oversight and certain reporting and other requirements intended to provide the Board the information it needs to oversee the Adviser's fair value determinations.

The Valuation Committee is also authorized to use pricing services to provide fair price evaluations of the current fair value of certain investments for purposes of calculating the NAV. 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 as the valuation designee. The Board periodically reviews the fair valuations made by the Valuation Committee. The Board has also approved the Adviser's fair valuation and significants events procedures as part of the Fund's compliance program and will review any changes made to the procedures. The Fund's and the Underlying Fund's Statements of Additional Information (SAI) discuss the methods used by pricing services and the Valuation Committee in valuing investments.

Using fair value to price investments may result in a value that is different from an investment's most recent closing price and from the prices used by other registered funds to calculate their NAVs. The application of the fair value procedures to an investment represents a good faith determination of such investment's fair value. 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 could be materially different.

How to Purchase Shares

Shares of the Fund held for an Eligible Investor may be purchased only at the direction of FIC or another Discretionary Manager of the Eligible Account. To the extent the Fund is permitted as an investment option for an Affiliated Fund, Shares also may be purchased at the discretion of the Affiliated Fund's adviser. Shares of the Fund may be purchased any day the NYSE is open. An account may be established and Shares purchased by submitting an Account Application and purchase request in good order to the Fund's Transfer Agent, SS&C GIDS, Inc.

Payment by federal funds must be received by the Fund's custodian by 3:00 p.m. (Eastern time) the next business day following the receipt of the purchase order. The Fund reserves the right to reject any request to purchase Shares.

How to Redeem Shares

Shares of the Fund held by an Eligible Investor may be redeemed only at the direction of FIC or another Discretionary Manager of the Eligible Investor's Eligible Account. Shares held by an Affiliated Fund may be redeemed at the discretion of an Affiliated Fund's adviser.

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Shares held by or on behalf of a shareholder who ceases to be an Eligible Investor (as defined above) must be redeemed and each shareholder on whose behalf FIC or another Discretionary Manager has purchased Shares agrees to any such redemption. If FIC (or its affiliate) is acting in a discretionary capacity, the Fund will redeem the Fund's Shares held by such investor. If the Fund Shares were purchased through a relationship with a third-party Discretionary Manager that has a business relationship with FIC (or its affiliate), the third-party Discretionary Manager will redeem the Fund's Shares held by such investor. In all circumstances, Federated Securities Corp. reserves the right to authorize the liquidation of shares for ineligible investors. The Fund will attempt to provide the applicable Discretionary Manager and/or wrap program sponsor with advance notice of any such redemption on behalf of the shareholder.

Shares of the Fund may be redeemed any day the NYSE is open by submitting a redemption request in good order to the Fund's Transfer Agent, SS&C GIDS, Inc. Redemption requests received before the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time) will receive a redemption amount based on that day's NAV.

Redemption proceeds normally are wired or mailed within one business day for each method of payment after receiving a timely request in proper form. Depending upon the method of payment, when shareholders receive redemption proceeds can differ. Payment may be delayed for up to seven days under certain circumstances (see "Limitations on Redemption Proceeds").

**PAYMENT METHODS FOR REDEMPTIONS** 

Redemption proceeds will be paid by one of the following methods established by the Discretionary Manager or affiliated Adviser:

◾ an electronic transfer to the shareholder's wrap fee, separately managed or discretionary investment account (i.e., Eligible Account) custodied at a financial institution that is an ACH member;

◾ wire payment to the shareholder's wrap fee, separately managed or discretionary investment account (i.e., Eligible Account) custodied at a domestic commercial bank that is a Federal Reserve System member; or

◾ check mailed to the qualified custodian of the shareholder's wrap fee, separately managed or discretionary investment accounts (i.e., Eligible Account).

**Methods the Fund May Use to Meet Redemption Requests** 

The Fund intends to pay Share redemptions in cash. To ensure that the Fund has cash to meet Share redemptions on any day, the Fund typically expects to hold a cash or cash equivalent reserve or sell portfolio securities.

In unusual or stressed circumstances, the Fund may generate cash in the following ways:

◾ **Inter-fund Borrowing and Lending.** The SEC has granted an exemption that permits the Fund and all other funds advised by subsidiaries of Federated Hermes ("Federated Hermes funds") to lend and borrow money for certain temporary purposes directly to and from other Federated Hermes funds. Inter-fund borrowing and lending is permitted only: (a) to meet shareholder redemption requests; (b) to meet commitments arising from "failed" trades; and (c) for other temporary purposes. All inter-fund loans must be repaid in seven days or less.

◾ **Committed 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. The LOC was made available to temporarily finance the repurchase or redemption of shares of the funds, 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.

◾ **Redemption in Kind.** Although the Fund intends to pay Share redemptions in cash, it reserves the right to pay the redemption price in whole or in part by an "in-kind" distribution of the Fund's portfolio securities. Because the Fund has elected to be governed by Rule 18f-1 under the 1940 Act, the Fund is obligated to pay Share redemptions to any one shareholder in cash only up to the lesser of $250,000 or 1% of the net assets represented by such Share class during any 90-day period. Redemptions in kind are made consistent with the procedures adopted by the Fund's Board, which generally include distributions of a pro rata share of the Fund's portfolio assets. Redemption in kind is not as liquid as a cash redemption. If redemption is made in kind, securities received may be subject to market risk and the shareholder could incur taxable gains and brokerage or other charges in converting the securities to cash.

**LIMITATIONS ON REDEMPTION PROCEEDS**

Redemption proceeds normally are wired or mailed within one business day after receiving a request in proper form. Payment may be delayed up to seven days:

◾ to allow a purchase to clear;

◾ during periods of market volatility;

◾ when a shareholder's trade activity or amount adversely impacts the Fund's ability to manage its assets; or

**19**

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◾ during any period when the Federal Reserve wire or applicable Federal Reserve banks are closed, other than customary weekend and holiday closings.

If a redemption of Shares recently purchased by check (including a cashier's check or certified check), money order, bank draft or ACH is requested, redemption proceeds may not be made available up to seven calendar days to allow the Fund to collect payment on the instrument used to purchase such Shares. If the purchase instrument does not clear, any purchase order will be canceled and the party submitting such payment will be responsible for any losses incurred by the Fund as a result of the canceled order.

In addition, redemptions may be suspended, or the payment of proceeds may be delayed, during any period:

◾ when the NYSE is closed, other than customary weekend and holiday closings;

◾ when trading on the NYSE is restricted, as determined by the SEC;

◾ in which an emergency exists, as determined by the SEC, so that disposal of the Fund's investments or determination of its NAV is not reasonably practicable; or

◾ as the SEC may by order permit for the protection of Fund shareholders.

You will not accrue interest or dividends on uncashed redemption checks from the Fund when checks are undeliverable and returned to the Fund.

**Share Certificates** 

The Fund does not issue share certificates.

Account and Share Information

**CONFIRMATIONS AND ACCOUNT STATEMENTS** 

Shareholders will receive confirmation of purchases and redemptions and periodic statements reporting all account activity, including dividends and capital gains paid.

Certain states, including the State of Texas, have laws that allow shareholders to designate a representative to receive abandoned or unclaimed property ("escheatment") notifications by completing and submitting a designation form that generally can be found on the official state website. If a shareholder resides in an applicable state, and elects to designate a representative to receive escheatment notifications, escheatment notices generally will be delivered as required by such state laws, including, as applicable, to both the shareholder and the designated representative. A completed designation form may be mailed to the Fund (if Shares are held directly with the Fund) or to the shareholder's financial intermediary (if Shares are not held directly with the Fund). Shareholders should refer to relevant state law for the shareholder's specific rights and responsibilities under his or her state's escheatment law(s), which can generally be found on a state's official website.

**DIVIDENDS AND CAPITAL GAINS**

The Fund declares any dividends daily and pays them monthly to shareholders. If you purchase Shares by wire, you begin earning dividends on the day your wire is received. If you purchase Shares by check, you begin earning dividends on the business day after the Fund receives your check. In either case, you earn dividends through the day your redemption request is received. Dividends on investments in the Fund are generally paid in cash and dividend reinvestment is generally not available.

In addition, the Fund pays any capital gains at least annually, and may make such special distributions of dividends and capital gains as may be necessary to meet applicable regulatory requirements.

Shares purchased just before the record date for a capital gain distribution will pay the full price for the shares and then receive a portion of the price back in the form of a taxable distribution. Investors should consider the tax implications of purchasing Shares shortly before the record date for a capital gain.

Under the federal securities laws, the Fund is required to provide a notice to shareholders regarding the source of distributions made by the Fund if such distributions are from sources other than ordinary investment income. In addition, important information regarding the Fund's distributions, if applicable, is available at FederatedInvestors.com/product-landing/managedaccount-pools.do. Select a product name, then click "Distributions and Taxes."

**20**

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**TAX INFORMATION**

The Fund and/or your financial intermediary provides year-end tax information and an annual statement of each shareholder's account activity to assist shareholders in completing their federal, state and local tax returns. Fund distributions of dividends and capital gains are taxable to shareholders whether paid in cash or reinvested in the Fund. Dividends are taxable at different rates depending on the source of dividend income. Distributions of net short-term capital gains are taxable to shareholders as ordinary income. Distributions of net long-term capital gains are taxable to shareholders as long-term capital gains regardless of how long a shareholder has owned the Shares.

Fund distributions are expected to be both dividends and capital gains. Redemptions and exchanges are taxable sales. Please consult your tax adviser regarding your federal, state and local tax liability.

**FREQUENT TRADING POLICIES** 

Frequent or short-term trading into and out of the Fund can have adverse consequences for the Fund and its shareholders who use the Fund as a long-term investment vehicle. Such trading in significant amounts can disrupt the Fund's investment strategies (e.g., by requiring it to sell investments at inopportune times or maintain excessive short-term cash positions to support redemptions), increase brokerage and administrative costs and affect the timing and amount of taxable gains distributed by the Fund. Investors engaged in such trading may also seek to profit by anticipating changes in the Fund's NAV in advance of the time as of which NAV is calculated. Given that: (a) the Fund is used exclusively to implement certain Fixed Income Strategies for Eligible Investors in Eligible Accounts and, to the extent permitted by applicable law, as an investment option for Affiliated Funds as described in this Prospectus; (b) FIC has the ability to limit Eligible Investors' investments in the Fund and Fund Share purchases, and redemptions for Eligible Accounts will be at the direction of FIC or another Discretionary Manager; (c) with respect to Eligible Accounts, Fund Share purchases and redemptions will be made on a frequent basis generally only for account initialization, rebalancing and liquidation purposes, or in order to invest new monies or accommodate reductions in Eligible Account size; and (d) individual Eligible Investors will not be in a position to effect purchase or redemption orders directly, the Fund does not anticipate that, in the normal case, frequent or short-term trading into and out of the Fund will have significant unanticipated or adverse consequences for the Fund and its shareholders. For these reasons, the Fund's Board has not adopted policies or procedures to discourage frequent or short-term trading of the Fund's Shares.

Other funds in the Federated Hermes family of funds may impose monitoring policies. Under normal market conditions, such monitoring policies are designed to protect the funds being monitored and their shareholders, and the operation of such policies and shareholder investments under such monitoring are not expected to have materially adverse impact on the Federated Hermes funds or their shareholders. If you plan to purchase shares of another Federated Hermes fund, please read the prospectus of that other Federated Hermes fund for more information.

The Fund may invest in affiliated investment companies whose boards have determined not to adopt frequent trading policies. The Fund therefore may be exposed to any adverse consequences of any frequent or short-term trading in such funds, to the extent of the Fund's investment therein.

**PORTFOLIO HOLDINGS INFORMATION** 

Information concerning the Fund's portfolio holdings is available at FederatedInvestors.com/product-landing/managedaccount-pools.do. Select a product name then click on "Characteristics." A complete listing of the Fund's portfolio holdings as of the end of each calendar quarter is posted on the website 30 days (or the next business day) after the end of the quarter and remains posted for six months thereafter.

Summary portfolio composition information as of the close of each month is posted on the website 15 days (or the next business day) after month-end and remains posted until replaced by the information for the succeeding month. The summary portfolio composition information may include identification of the Fund's top 10 holdings.

You may also access portfolio information as of the end of the Fund's fiscal quarters at FederatedInvestors.com/product-landing/managedaccount-pools.do. Select a product then click on "Documents." The Fund's Annual Shareholder Report and Semi-Annual Shareholder Report contain complete listings of the Fund's portfolio holdings as of the end of the Fund's second and fourth fiscal quarters. Fiscal quarter information is made available on the website within 70 days after the end of the fiscal quarter. This information is also available in reports filed with the SEC at the SEC's website at sec.gov.

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 at FederatedInvestors.com/product-landing/managedaccount-pools.do.

**21**

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In addition, from time to time (for example, during periods of unusual market conditions), additional information regarding the Fund's portfolio holdings and/or composition may be posted to FederatedInvestors.com/product-landing/managedaccount-pools.do. If and when such information is posted, its availability will be noted on, and the information will be accessible from, the home page of the website.

Who Manages the Fund?

The Board governs the Fund. The Board selects and oversees the Adviser, Federated Investment Management Company. The Adviser manages the Fund's assets, including buying and selling portfolio securities. Federated Advisory Services Company (FASC), an affiliate of the Adviser, provides certain support services to the Adviser. The fee for these services is paid by the Adviser and not by the Fund. The address of the Adviser and FASC is 1001 Liberty Avenue, Pittsburgh, PA 15222-3779.

The Adviser and other advisory subsidiaries of Federated Hermes combined, advise approximately 102 registered investment companies spanning equity, fixed-income and money market mutual funds and also manage a variety of other pooled investment vehicles, private investment companies and customized separately managed accounts (including non-U.S./offshore funds). Federated Hermes' assets under management totaled approximately $668.9 billion as of December 31, 2022. Federated Hermes was established in 1955 as Federated Investors, Inc. and is one of the largest investment managers in the United States with nearly 2,000 employees. Federated Hermes provides investment products to more than 11,000 investment professionals and institutions.

The Adviser advises approximately 73 registered investment companies and also manages sub-advised funds. The Adviser's assets under management totaled approximately $399.6 billion as of December 31, 2022.

**PORTFOLIO MANAGEMENT INFORMATION**

**Todd A. Abraham** 

Todd A. Abraham, CFA, Senior Portfolio Manager, has been the Fund's portfolio manager since its inception December of 2007.

Mr. Abraham is Head of the Government/Mortgage-backed Fixed Income Group. He is responsible for day to day management of the Fund focusing on asset allocation, interest rate strategy and security selection. He has been with the Adviser or an affiliate since 1993; has worked in investment management since 1993; has managed investment portfolios since 1995. Education: B.S., Indiana University of Pennsylvania; M.B.A., Loyola College.

**Liam O'Connell** 

Liam O'Connell, CFA, Portfolio Manager, has been the Fund's portfolio manager since February of 2018.

Mr. O'Connell is responsible for providing research and advice on sector allocation and security selection. He has been with the Adviser or an affiliate since 2003; has worked in investment management since 2003; has managed investment portfolios since 2005. Education: B.S., Webb Institute of Naval Architecture; M.S., Johns Hopkins University; M.B.A., Massachusetts Institute of Technology.

The Fund's SAI provides additional information about the Portfolio Manager's compensation, management of other accounts and ownership of securities in the Fund.

**ADVISORY FEES**

The Adviser will not charge an advisory fee for its services to the Fund.

The Adviser's affiliate, FIC, may benefit from the Fund being used to implement Fixed Income Strategies for Eligible Investors' Eligible Accounts.

A discussion of the Board's review of the Fund's investment advisory contract is available in the Fund's Annual and Semi-Annual Shareholder Reports for the periods ended December 31 and June 30, respectively.

Financial Information

**FINANCIAL HIGHLIGHTS** 

The Financial Highlights will help you understand the Fund's financial performance for its past five fiscal years. Some of the information is presented on a per Share basis. Total returns represent the rate an investor would have earned (or lost) on an investment in the Fund, assuming reinvestment of any dividends and capital gains.

This information has been audited by Ernst & Young LLP, an independent registered public accounting firm, whose report, along with the Fund's audited financial statements, is included in the Annual Report.

**22**

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Financial Highlights

(For a Share Outstanding Throughout Each Period)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | **$9.85** | **$10.18** | **$9.98** | **$9.70** | **$9.90** |
| **Income From Investment Operations:** |  |  |  |  |  |
| Net investment income (loss) | 0.27 | 0.22 | 0.27 | 0.32 | 0.30 |
| Net realized and unrealized gain (loss) | (1.40) | (0.32) | 0.20 | 0.28 | (0.20) |
| TOTAL FROM INVESTMENT OPERATIONS | (1.13) | (0.10) | 0.47 | 0.60 | 0.10 |
| **Less Distributions:** |  |  |  |  |  |
| Distributions from net investment income | (0.26) | (0.22) | (0.27) | (0.32) | (0.30) |
| Distributions from net realized gain |  | (0.01) |  |  |  |
| TOTAL DISTRIBUTIONS | (0.26) | (0.23) | (0.27) | (0.32) | (0.30) |
| **Net Asset Value, End of Period** | **$8.46** | **$9.85** | **$10.18** | **$9.98** | **$9.70** |
| **Total Return**<sup>1</sup> | (11.54)% | (0.94)% | 4.77% | 6.29% | 1.12% |
| **Ratios to Average Net Assets:** |  |  |  |  |  |
| Net expenses<sup>2</sup> <br>| 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Net investment income | 3.01% | 2.21% | 2.68% | 3.26% | 3.17% |
| Expense waiver/reimbursement<sup>3</sup> | 0.17% | 0.21% | 0.23% | 0.24% | 0.27% |
| **Supplemental Data:** |  |  |  |  |  |
| Net assets, end of period (000 omitted) | $295407 | $171828 | $126578 | $120793 | $99486 |
| Portfolio turnover<sup>4</sup> | 11% | 14% | 43% | 7% | 10% |

---

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

---

| | |
|:---|:---|
| 1 | *Based on net asset value.* |
| 2 | *The Adviser has contractually agreed to reimburse all expenses, excluding extraordinary expenses, incurred by the Fund. Amount does not reflect net expenses* <br> *incurred by investment companies in which the Fund may invest.*<br>|
| 3 | *This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/*<br> *reimbursement recorded by investment companies in which the Fund may invest.*<br>|
| 4 | *Securities that mature are considered sales for purposes of this calculation.* |

---

Further information about the Fund's performance is contained in the Fund's Annual Report, dated December 31, 2022, which can be obtained free of charge.

**23**

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Appendix A: Hypothetical Investment and Expense Information

The following chart provides additional hypothetical information about the effect of the Fund's expenses, including investment advisory fees and other Fund costs, on the Fund's assumed returns over a 10-year period. The chart shows the estimated expenses that would be incurred in respect of a hypothetical investment of $10,000, assuming a 5% return each year, and no redemption of Shares. The chart also assumes that the Fund's annual expense ratio stays the same throughout the 10-year period (except for the impact of changes in contractual expense limitations) and that all dividends and distributions are reinvested. The annual expense ratio used in the chart is the same as stated in the "Fees and Expenses" table of this Prospectus (and thus do not reflect any other fee waiver or expense reimbursement currently in effect). The maximum amount of any sales charge that might be imposed on the *purchase* of Shares (and deducted from the hypothetical initial investment of $10,000; the "Front-End Sales Charge") is reflected in the "Hypothetical Expenses" column. The hypothetical investment information does not reflect the effect of charges (if any) normally applicable to *redemptions* of Shares (e.g., deferred sales charges, redemption fees). Mutual fund returns, as well as fees and expenses, may fluctuate over time, and your actual investment returns and total expenses may be higher or lower than those shown below.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **FEDERATED HERMES MORTGAGE STRATEGY PORTFOLIO** | **FEDERATED HERMES MORTGAGE STRATEGY PORTFOLIO** | **FEDERATED HERMES MORTGAGE STRATEGY PORTFOLIO** | **FEDERATED HERMES MORTGAGE STRATEGY PORTFOLIO** | **FEDERATED HERMES MORTGAGE STRATEGY PORTFOLIO** | **FEDERATED HERMES MORTGAGE STRATEGY PORTFOLIO** |
| **ANNUAL EXPENSE RATIO: 0.02%** | **ANNUAL EXPENSE RATIO: 0.02%** | **ANNUAL EXPENSE RATIO: 0.02%** | **ANNUAL EXPENSE RATIO: 0.02%** | **ANNUAL EXPENSE RATIO: 0.02%** | **ANNUAL EXPENSE RATIO: 0.02%** |
| **MAXIMUM FRONT-END SALES CHARGE: NONE** | **MAXIMUM FRONT-END SALES CHARGE: NONE** | **MAXIMUM FRONT-END SALES CHARGE: NONE** | **MAXIMUM FRONT-END SALES CHARGE: NONE** | **MAXIMUM FRONT-END SALES CHARGE: NONE** | **MAXIMUM FRONT-END SALES CHARGE: NONE** |
| **Year** | **Hypothetical**<br> **Beginning** <br> **Investment**<br>| **Hypothetical** <br> **Performance** <br> **Earnings**<br>| **Investment** <br> **After**<br> **Returns**<br>| **Hypothetical** <br> **Expenses**<br>| **Hypothetical** <br> **Ending**<br> **Investment**<br>|
| 1 | $10000.00 | $500.00 | $10500.00 | $2.05 | $10498.00 |
| 2 | $10498.00 | $524.90 | $11022.90 | $2.15 | $11020.80 |
| 3 | $11020.80 | $551.04 | $11571.84 | $2.26 | $11569.64 |
| 4 | $11569.64 | $578.48 | $12148.12 | $2.37 | $12145.81 |
| 5 | $12145.81 | $607.29 | $12753.10 | $2.49 | $12750.67 |
| 6 | $12750.67 | $637.53 | $13388.20 | $2.61 | $13385.65 |
| 7 | $13385.65 | $669.28 | $14054.93 | $2.74 | $14052.26 |
| 8 | $14052.26 | $702.61 | $14754.87 | $2.88 | $14752.06 |
| 9 | $14752.06 | $737.60 | $15489.66 | $3.02 | $15486.71 |
| 10 | $15486.71 | $774.34 | $16261.05 | $3.17 | $16257.95 |
| Cumulative |  | $6283.07 |  | $25.74 |  |

---

**24**

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Notes

[PAGE INTENTIONALLY LEFT BLANK]

------

An SAI dated February 28, 2023, is incorporated by reference into this Prospectus. Additional information about the Fund and its investments is contained in the Fund's SAI and Annual and Semi-Annual Reports to shareholders as they become available. The Annual Report's Management's Discussion of Fund Performance discusses market conditions and investment strategies that significantly affected the Fund's performance during its last fiscal year. The SAI contains a description of the Fund's policies and procedures with respect to the disclosure of its portfolio securities. To obtain the SAI, Annual Report, Semi-Annual Report and other information without charge, and to make inquiries, call your financial intermediary, Discretionary Manager or the Fund at 1-800-341-7400.

The Fund's shareholder reports will be made available on FederatedInvestors.com/FundInformation, and you will be notified and provided with a link each time a report is posted to the website. You may request to receive paper reports from the Fund or from your financial intermediary, free of charge, at any time. You may also request to receive documents through e-delivery.

These documents, as well as additional information about the Fund (including portfolio holdings, performance and distributions) are also available at FederatedInvestors.com/product-landing/managedaccount-pools.do.

You can obtain information about the Fund (including the SAI) by accessing Fund information from the EDGAR Database on the SEC's website at sec.gov. You can purchase copies of this information by contacting the SEC by email at publicinfo@sec.gov.

![](fhilogok11p_2.jpg)

Federated Hermes Mortgage Strategy Portfolio

Federated Hermes Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

Contact us at  **<u>FederatedInvestors.com</u>**

or call 1-800-341-7400.

Federated Securities Corp., Distributor

*Investment Company Act File No. 811-21822* 

*CUSIP 31421P407*

*35541 (2/23)*© 2023 Federated Hermes, Inc.

![](img383f3ead2.jpg)

------

**Statement of Additional Information**

***February 28, 2023***

![](imgb15ecfad1.gif)

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

**Ticker** FMBPX<br>

------

Federated Hermes Mortgage Strategy Portfolio

------

A Portfolio of Federated Hermes Managed Pool Series

This Statement of Additional Information (SAI) is not a Prospectus. Read this SAI in conjunction with the Prospectus for Federated Hermes Mortgage Strategy Portfolio (the "Fund"), dated February 28, 2023.

This SAI incorporates by reference the Fund's Annual Report. Obtain the Prospectus or the Annual Report without charge by calling 1-800-341-7400.

---

| | |
|:---|:---|
|  | **Contents** |
| 1 | [How is the Fund Organized?](#xx_8bb2f7ca-c897-471c-a4c1-0a583a940eff_1) |
| 1 | [Securities in Which the Fund and the Underlying Fund Invests](#xx_8bb2f7ca-c897-471c-a4c1-0a583a940eff_1) |
| 9 | [Investment Risks](#xx_8bb2f7ca-c897-471c-a4c1-0a583a940eff_9) |
| 12 | [Investment Objective and Investment Limitations](#xx_8bb2f7ca-c897-471c-a4c1-0a583a940eff_12) |
| 14 | [What Do Shares Cost?](#xx_8bb2f7ca-c897-471c-a4c1-0a583a940eff_14) |
| 17 | [How to Invest in the Fund?](#xx_8bb2f7ca-c897-471c-a4c1-0a583a940eff_17) |
| 19 | [Purchases In-Kind](#xx_8bb2f7ca-c897-471c-a4c1-0a583a940eff_19) |
| 19 | [Redemption In-Kind](#xx_8bb2f7ca-c897-471c-a4c1-0a583a940eff_19) |
| 20 | [Massachusetts Partnership Law](#xx_8bb2f7ca-c897-471c-a4c1-0a583a940eff_20) |
| 20 | [Account and Share Information](#xx_8bb2f7ca-c897-471c-a4c1-0a583a940eff_20) |
| 20 | [Tax Information](#xx_8bb2f7ca-c897-471c-a4c1-0a583a940eff_20) |
| 21 | [Who Manages and Provides Services to the Fund?](#xx_8bb2f7ca-c897-471c-a4c1-0a583a940eff_21) |
| 36 | [Financial Information](#xx_8bb2f7ca-c897-471c-a4c1-0a583a940eff_36) |
| 36 | [Investment Ratings](#xx_8bb2f7ca-c897-471c-a4c1-0a583a940eff_36) |
| 41 | [Addresses](#xx_e0039abf-567f-432a-8996-37a79fef962c_1) |
| 42 | [Appendix](#xx_ada1ad9b-2098-43b4-8a1c-f3493b6b6fd6_1) |

---

Federated Hermes Mortgage Strategy Portfolio

Federated Hermes Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

Contact us at **FederatedInvestors.com**

or call 1-800-341-7400.

Federated Securities Corp., Distributor

*35542 (2/23)*© 2023 Federated Hermes, Inc.

------

How is the Fund Organized?

The Fund is a non-diversified portfolio of Federated Hermes Managed Pool Series (the "Trust"). The Trust is an open-end, management investment company that was established under the laws of the Commonwealth of Massachusetts on October 3, 2005. The Trust may offer separate series of shares representing interests in separate portfolios of securities. The Fund's investment adviser is Federated Investment Management Company (the "Adviser"). As more fully explained in the Fund's Prospectus, the Fund is used to implement fixed-income investment strategies for eligible investors in wrap fee, separately managed and other discretionary investment accounts that are advised or subadvised by Federated Investment Counseling (FIC), a subsidiary of Federated Hermes Inc., ("Federated Hermes," formerly, Federated Investors, Inc.), or its affiliates or certain other discretionary managers. Shares of the Fund held for an eligible investor may be purchased only at the direction of FIC or other discretionary managers to such wrap fee, separately managed or other discretionary investment accounts. Effective June 26, 2020, the Trust changed its name from Federated Managed Pool Series to Federated Hermes Managed Pool Series and the Fund changed its name from Federated Mortgage Strategy Portfolio to Federated Hermes Mortgage Strategy Portfolio.

For purposes of this SAI: (1) the fixed income investment strategies implemented through investments in the Fund are referred to as the "Fixed Income Strategies"; (2) the investors in the wrap fee, separately managed and other discretionary investment accounts that may be permitted to invest in the Fund are referred to as "Eligible Investors"; (3) the wrap fee, separately managed and other discretionary investment accounts in which Eligible Investors may invest are referred to as "Eligible Accounts"; and (4) FIC, its affiliates and any other third-party discretionary managers that may invest Eligible Investors' assets in the Fund are referred to as "Discretionary Managers."

Securities in Which the Fund and the Underlying Fund Invests

The principal securities or other investments in which the Fund and Mortgage Core Fund (the "Underlying Fund") invest are described in the Fund's Prospectus. The Fund and the Underlying Fund also may invest in securities or other investments as non-principal investments for any purpose that is consistent with its investment objective. The following information is either additional information, in respect of a principal security or other investment referenced in the Prospectus, or information in respect of a non-principal security or other investment (in which case there is no related disclosure in the Prospectus). Effective February 25, 2021, the Underlying Fund changed its name from Federated Mortgage Core Portfolio to Mortgage Core Fund.

**SECURITIES DESCRIPTIONS AND TECHNIQUES** 

**Mortgage-Backed Securities (MBS) (A Fixed-Income Security)** 

An MBS is a type of pass-through security, which is a pooled debt obligation repackaged as interests that pass principal and interest through an intermediary to investors. In the case of MBS, the ownership interest is in a pool of mortgage loans. MBS represent participation interests in pools of adjustable and fixed-rate mortgage loans. MBS are most commonly issued or guaranteed by the U.S. government (or one of its agencies or instrumentalities), but also may be issued or guaranteed by other private issuers ("non-agency MBS"). Unlike conventional debt obligations, MBS provide monthly payments derived from the monthly interest and principal payments (including any prepayments) made by the individual borrowers on the pooled mortgage loans.

There are two markets for MBS. A specified pool transaction is a trade in which the pool number of the security to be delivered on the settlement date is known at the time the trade is made. This is in contrast with the typical MBS transaction, called a TBA ("To Be Announced") transaction, in which the type of MBS to be delivered is specified at the time of trade but the actual pool numbers of the securities that will be delivered are not known at the time of the trade. The pool numbers of the pools to be delivered at settlement are announced shortly before settlement takes place. The terms of the TBA trade may be made more specific if desired. Generally, agency pass-through MBS are traded on a TBA basis. The Fund may enter into TBA trades in order to buy or sell MBS on a delayed delivery basis.

**Collateralized Mortgage Obligations (A Type of Mortgage-Backed Security)** 

Collateralized mortgage obligations (CMOs), including interests in real estate mortgage investment conduits (REMICs), allocate payments and prepayments from an underlying pass-through certificate among holders of different classes of mortgage-backed securities. This creates different prepayment and interest rate risks for each CMO class. The degree of increased or decreased prepayment risks depends upon the structure of the CMOs. However, the actual returns on any type of mortgage-backed security depend upon the performance of the underlying pool of mortgages, which no one can predict with certainty and will vary among pools.

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**Sequential CMOs (A Type of CMO)** 

In a sequential pay CMO, one class of CMOs receives all principal payments and prepayments. The next class of CMOs receives all principal payments after the first class is paid off. This process repeats for each sequential class of CMO. As a result, each class of sequential pay CMOs reduces the prepayment risks of subsequent classes.

**PACs, TACs and Companion Classes (Types of CMOs)** 

More sophisticated CMOs include planned amortization classes (PACs) and targeted amortization classes (TACs). PACs and TACs are issued with companion classes. PACs and TACs receive principal payments and prepayments at a specified rate. The companion classes receive principal payments and prepayments in excess of the specified rate. In addition, PACs will receive the companion classes' share of principal payments, if necessary, to cover a shortfall in the prepayment rate. This helps PACs and TACs to control prepayment risks by increasing the risks to their companion classes.

**IOs and POs (Types of CMOs)** 

CMOs may allocate interest payments to one class ("Interest Only" or IOs) and principal payments to another class ("Principal Only" or POs). POs increase in value when prepayment rates increase. In contrast, IOs decrease in value when prepayments increase, because the underlying mortgages generate less interest payments. However, IOs tend to increase in value when interest rates rise (and prepayments decrease), making IOs a useful hedge against interest rate risks.

**Floaters and Inverse Floaters (Types of CMOs)** 

Another variant allocates interest payments between two classes of CMOs. One class ("Floaters") receives a share of interest payments based upon a market index such as the London Interbank Offered Rate (LIBOR). The other class ("Inverse Floaters") receives any remaining interest payments from the underlying mortgages. Floater classes receive more interest (and Inverse Floater classes receive correspondingly less interest) as interest rates rise. This shifts prepayment and interest rate risks from the Floater to the Inverse Floater class, reducing the price volatility of the Floater class and increasing the price volatility of the Inverse Floater class.

**Z Classes and Residual Classes (Types of CMOs)** 

CMOs must allocate all payments received from the underlying mortgages to some class. To capture any unallocated payments, CMOs generally have an accrual (Z) class. Z classes do not receive any payments from the underlying mortgages until all other CMO classes have been paid off. Once this happens, holders of Z class CMOs receive all payments and prepayments.

**CMBX Indexes** 

CMBX Indexes are indexes that track the commercial mortgage-backed securities (CMBS) market. The indexes represent 25 tranches of CMBS, each with a different credit rating. These indexes enable investors to gauge the market and take long or short positions via credit default swaps, which put specific interest rate spreads on each risk class. The pricing is based on the spreads themselves rather than on a pricing mechanism.

**Treasury Securities** 

Treasury securities are direct obligations of the federal government of the United States. Treasury securities are generally regarded as having minimal credit risks.

**U.S. Government Securities (A Fixed-Income Security)** 

Government securities are issued or guaranteed by a federal agency or instrumentality acting under federal authority. Some government securities, including those issued by Government National Mortgage Association ("Ginnie Mae"), are supported by the full faith and credit of the United States and are guaranteed only as to the timely payment of interest and principal.

Other government securities receive support through federal subsidies, loans or other benefits, but are not backed by the full faith and credit of the United States. For example, the U.S. Treasury is authorized to purchase specified amounts of securities issued by (or otherwise make funds available to) the Federal Home Loan Bank System, Federal Home Loan Mortgage Corporation ("Freddie Mac"), and Federal National Mortgage Association ("Fannie Mae") in support of such obligations.

Some government agency securities have no explicit financial support and are supported only by the credit of the applicable agency, instrumentality or corporation. The U.S. government has provided financial support to Freddie Mac and Fannie Mae, but there is no assurance that it will support these or other agencies in the future.

Investors regard government securities as having minimal credit risks but not as low as Treasury securities.

The Fund treats mortgage-backed securities guaranteed by a federal agency or instrumentality as government securities. Although such a guarantee helps protect against credit risk, it does not eliminate it entirely or reduce other risks.

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***Additional Information Related to Freddie Mac and Fannie Mae.*** The extreme and unprecedented volatility and disruption that impacted the capital and credit markets beginning in 2008 led to market concerns regarding the ability of Freddie Mac and Fannie Mae to withstand future credit losses associated with securities held in their investment portfolios, and on which they provide guarantees, without the direct support of the federal government. On September 7, 2008, both Freddie Mac and Fannie Mae were placed under the conservatorship of the Federal Housing Finance Agency (FHFA). Under the plan of conservatorship, the FHFA assumed control of, and generally has the power to direct, the operations of Freddie Mac and Fannie Mae, and is empowered to exercise all powers collectively held by their respective shareholders, directors and officers, including the power to: (1) take over the assets of and operate Freddie Mac and Fannie Mae with all the powers of the shareholders, the directors and the officers of Freddie Mac and Fannie Mae and conduct all business of Freddie Mac and Fannie Mae; (2) collect all obligations and money due to Freddie Mac and Fannie Mae; (3) perform all functions of Freddie Mac and Fannie Mae which are consistent with the conservator's appointment; (4) preserve and conserve the assets and property of Freddie Mac and Fannie Mae; and (5) contract for assistance in fulfilling any function, activity, action or duty of the conservator.

In connection with the actions taken by the FHFA, the Treasury has entered into certain preferred stock purchase agreements (SPAs) with each of Freddie Mac and Fannie Mae which establish the Treasury as the holder of a new class of senior preferred stock in each of Freddie Mac and Fannie Mae. The senior preferred stock was issued in connection with financial contributions from the Treasury to Freddie Mac and Fannie Mae. Although the SPAs are subject to amendment from time to time, currently the Treasury is obligated to provide such financial contributions up to an aggregate maximum amount determined by a formula set forth in the SPAs, and until such aggregate maximum amount is reached, there is not a specific end date to the Treasury's obligations.

The future status and role of Freddie Mac and Fannie Mae could be impacted by (among other things) the actions taken and restrictions placed on Freddie Mac and Fannie Mae by the FHFA in its role as conservator, the restrictions placed on Freddie Mac's and Fannie Mae's operations and activities under the SPAs, market responses to developments in Freddie Mac and Fannie Mae, downgrades or upgrades in the credit ratings assigned to Freddie Mac and Fannie Mae by nationally recognized statistical rating organizations (NRSROs) or ratings services, and future legislative and regulatory action that alters the operations, ownership, structure and/or mission of these institutions, each of which may, in turn, impact the value of, and cash flows on, any securities guaranteed by Freddie Mac and Fannie Mae.

In addition, the future of Freddie Mac and Fannie Mae, and other U.S. government-sponsored enterprises that are not backed by the full faith and credit of the U.S. government (GSEs), remains in question as the U.S. government continues to consider options ranging from structural reform, nationalization, privatization, or consolidation, to outright elimination. The issues that have led to significant U.S. government support for Freddie Mac and Fannie Mae have sparked serious debate regarding the continued role of the U.S. government in providing mortgage loan liquidity.

**Zero-Coupon Securities (A Fixed-Income Security)** 

Zero-coupon securities do not pay interest or principal until final maturity unlike debt securities that provide periodic payments of interest (referred to as a coupon payment). Investors buy zero-coupon securities at a price below the amount payable at maturity. The difference between the purchase price and the amount paid at maturity represents interest on the zero-coupon security. Investors must wait until maturity to receive interest and principal, which increases the interest rate and credit risks of a zero-coupon security. A zero-coupon, step-up security converts to a coupon security before final maturity.

There are many forms of zero-coupon securities. Some are issued at a discount and are referred to as zero-coupon or capital appreciation bonds. Others are created from interest bearing bonds by separating the right to receive the bond's coupon payments from the right to receive the bond's principal due at maturity, a process known as coupon stripping. Treasury STRIPs, IOs and POs are the most common forms of stripped, zero-coupon securities. In addition, some securities give the issuer the option to deliver additional securities in place of cash interest payments, thereby increasing the amount payable at maturity. These are referred to as pay-in-kind, PIK securities or toggle securities.

**foreign MBS** 

Foreign MBS are backed by mortgage loans for real estate located outside of the U.S. The foreign MBS in which the Fund intends to invest will involve real estate located in developed markets, as compared to emerging markets, and will be denominated in U.S. dollars. Along with risks involved with domestic MBS, the foreign MBS are subject to the risks of foreign investing.

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**FOREIGN ABS** 

Foreign ABS are backed by pools of assets, such as automobile loans and credit-card receivables located outside of the United States. The foreign ABS in which the Fund intends to invest will involve pools of assets located in developed markets, as compared to emerging markets, and will be denominated in U.S. dollars. Along with risks involved with domestic ABS, the foreign ABS are subject to the risks of foreign investing.

**Derivative Contracts** 

Derivative contracts are financial instruments that derive their value from underlying securities, commodities, currencies, indices or other assets or instruments, including other derivative contracts (each a "Reference Instrument" and collectively, "Reference Instruments"). The most common types of derivative contracts are swaps, futures and options, and the major asset classes include interest rates, equities, commodities and foreign exchange. Each party to a derivative contract may sometimes be referred to as a "counterparty." Some derivative contracts require payments relating to an actual, future trade involving the Reference Instrument. These types of derivatives are frequently referred to as "physically settled" derivatives. Other derivative contracts require payments relating to the income or returns from, or changes in the market value of, a Reference Instrument. These types of derivatives are known as "cash settled" derivatives, since they require cash payments in lieu of delivery of the Reference Instrument.

Many derivative contracts are traded on exchanges. In these circumstances, the relevant exchange sets all the terms of the contract except for the price. Parties to an exchange-traded derivative contract make payments through the exchange. Most exchanges require traders to maintain margin accounts through their brokers to cover their potential obligations to the exchange. Parties to the contract make or collect daily payments to the margin accounts to reflect losses (or gains), respectively, in the value of their contracts. This protects traders against a potential default by their counterparty. Trading contracts on an exchange also allows traders to hedge or mitigate certain risks or carry out more complex trading strategies by entering into offsetting contracts.

For example, the Fund and the Underlying Fund could close out an open contract to buy an asset at a future date by entering into an offsetting contract to sell the same asset on the same date. If the offsetting sale price is more than the original purchase price, the Fund and the Underlying Fund realizes a gain; if it is less, the Fund and the Underlying Fund realizes a loss. Exchanges may limit the amount of open contracts permitted at any one time. Such limits may prevent the Fund and the Underlying Fund from closing out a position. If this happens, the Fund and Underlying Fund will be required to keep the contract open (even if it is losing money on the contract), and to make any payments required under the contract (even if it has to sell portfolio securities at unfavorable prices to do so). Inability to close out a contract could also harm the Fund by preventing it from disposing of or trading any assets it has been using to secure its obligations under the contract.

The Fund and the Underlying Fund may also trade derivative contracts over-the-counter (OTC), meaning off-exchange, in transactions negotiated directly between the Fund or the Underlying Fund and an eligible counterparty, which may be a financial institution. OTC contracts do not necessarily have standard terms, so they may be less liquid and more difficult to close out than exchange-traded derivative contracts. In addition, OTC contracts with more specialized terms may be more difficult to value than exchange traded contracts, especially in times of financial stress.

The market for swaps and other OTC derivatives was largely unregulated prior to the enactment of federal legislation known as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"). Regulations enacted by the Commodity Futures Trading Commission (the "CFTC") under the Dodd-Frank Act require the Fund and Underlying Fund to clear certain types of swap contracts (including certain interest rate and credit default swaps) through a central clearinghouse known as a derivatives clearing organization (DCO).

To clear a swap through a DCO, the Fund and the Underlying Fund will submit the contract to, and post margin with, a futures commission merchant (FCM) that is a clearinghouse member. The Fund and the Underlying Fund may enter into the swap with a counterparty other than the FCM and arrange for the contract to be transferred to the FCM for clearing or enter into the contract with the FCM itself. If the Fund or the Underlying Fund must centrally clear a transaction, the CFTC's regulations also generally require that the swap be executed on a registered exchange (either a designated contract market (DCM) or swap execution facility (SEF)). Central clearing is presently required only for certain swaps; the CFTC is expected to impose a mandatory central clearing requirement for additional derivative instruments over time.

DCOs, DCMs, SEFs and FCMs are all subject to regulatory oversight by the CFTC. In addition, certain derivative market participants that act as market makers, and engage in a significant amount of "dealing" activity are as also required to register as swap dealers with the CFTC. Among other things, swap dealers are subject to minimum capital requirements and business conduct standards and must also post and collect initial and variation margin on uncleared swaps with certain of their counterparties. Because of this, if the Fund enters into uncleared swaps with any swap dealers, it may be subject to initial and variation margin requirements that could impact the Fund's ability to enter into swaps in the OTC market, including making transacting in uncleared swaps significantly more expensive.

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At this point in time, most of the Dodd-Frank Act has been fully implemented, though a small number of remaining rulemakings are unfinished or are subject to phase-in periods. Any future regulatory or legislative activity would not necessarily have a direct, immediate effect upon the Fund, though it is within the realm of possibility that, upon implementation of these measures or any future measures, they could potentially limit or completely restrict the ability of the Fund to use these instruments as a part of its investment strategy, increase the costs of using these instruments or make them less effective.

Depending on how the Fund uses derivative contracts and the relationships between the market value of a derivative contract and the Reference Instrument, derivative contracts may increase or decrease the Fund's exposure to the risks of the Reference Instrument and may also expose the Fund to liquidity and leverage risk. OTC contracts also expose the Fund to credit risk in the event that a counterparty defaults on the contract, although this risk may be mitigated by submitting the contract for clearing through a DCO, or certain other factors, such as collecting margin from the counterparty.

The Fund may invest in a derivative contract if it is permitted to own, invest in or otherwise have economic exposure to the Reference Instrument. The Fund is not required to own a Reference Instrument in order to buy or sell a derivative contract relating to that Reference Instrument. The Fund may trade in the following specific types and/or combinations of derivative contracts:

**Futures Contracts (A Type of Derivative)** 

Futures contracts provide for the future sale by one party and purchase by another party of a specified amount of a Reference Instrument at a specified price, date and time. Entering into a contract to buy a Reference Instrument is commonly referred to as buying a contract or holding a long position in the asset. Entering into a contract to sell a Reference Instrument is commonly referred to as selling a contract or holding a short position in the Reference Instrument. Futures contracts are considered to be commodity contracts. The Fund's and Underlying Fund's Adviser has claimed an exclusion from the definition of the term "commodity pool operator" under the Commodity Exchange Act with respect to the Fund and Underlying Fund and, therefore, is not subject to registration or regulation with respect to the Fund or Underlying Fund. Futures contracts traded OTC are frequently referred to as forward contracts. The Fund and Underlying Fund can buy or sell financial futures (such as index futures and security futures).

**Option Contracts (A Type of Derivative)** 

Option contracts (also called "options") are rights to buy or sell a Reference Instrument for a specified price (the "exercise price") during, or at the end of, a specified period. The seller (or "writer") of the option receives a payment, or premium, from the buyer, which the writer keeps regardless of whether the buyer uses (or exercises) the option. Options may be bought or sold on a wide variety of Reference Instruments. Options that are written on futures contracts will be subject to margin requirements similar to those applied to futures contracts.

The Fund and Underlying Fund may buy and/or sell the following types of options:

**Call Options** 

A call option gives the holder ("buyer") the right to buy the Reference Instrument from the seller ("writer") of the option. The Fund and Underlying Fund may use call options in the following ways:

◾ Buy call options on a Reference Instrument in anticipation of an increase in the value of the Reference Instrument; and

◾ Write call options on a Reference Instrument to generate income from premiums, and in anticipation of a decrease or only limited increase in the value of the Reference Instrument. If the Fund and Underlying Fund write a call option on a Reference Instrument that it owns and that call option is exercised, the Fund and Underlying Fund forego any possible profit from an increase in the market price of the Reference Instrument over the exercise price plus the premium received.

**Put Options** 

A put option gives the holder the right to sell the Reference Instrument to the writer of the option. The Fund and Underlying Fund may use put options in the following ways:

◾ Buy put options on a Reference Instrument in anticipation of a decrease in the value of the Reference Instrument; and

◾ Write put options on a Reference Instrument to generate income from premiums, and in anticipation of an increase or only limited decrease in the value of the Reference Instrument. In writing puts, there is a risk that the Fund and Underlying Fund may be required to take delivery of the Reference Instrument when its current market price is lower than the exercise price.

The Fund and Underlying Fund may also buy or write options, as needed, to close out existing option positions.

Finally, the Fund and Underlying Fund may enter into combinations of options contracts in an attempt to benefit from changes in the prices of those options contracts (without regard to changes in the value of the Reference Instrument).

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**Swap Contracts (A Type of Derivative)** 

A swap contract (also known as a "swap") is a type of derivative contract in which two parties agree to pay each other (swap) the returns derived from Reference Instruments. Most swaps do not involve the delivery of the underlying assets by either party, and the parties might not own the Reference Instruments. The payments are usually made on a net basis so that, on any given day, the Fund and Underlying Fund would receive (or pay) only the amount by which its payment under the contract is less than (or exceeds) the amount of the other party's payment. Swap agreements are sophisticated instruments that can take many different forms and are known by a variety of names. Common swap agreements that the Fund and Underlying Fund may use include:

**Interest Rate Swaps** 

Interest rate swaps are contracts in which one party agrees to make regular payments equal to a fixed or floating interest rate times a stated principal amount (commonly referred to as a "notional principal amount") in return for payments equal to a different fixed or floating rate times the same principal amount, for a specific period. For example, a $10 million London Interbank Offered Rate (LIBOR) swap would require one party to pay the equivalent of the London Interbank Offered Rate of interest (which fluctuates) on $10 million principal amount in exchange for the right to receive the equivalent of a stated fixed rate of interest on $10 million principal amount.

**Total Return Swaps** 

A total return swap is an agreement between two parties whereby one party agrees to make payments of the total return from a Reference Instrument (or a basket of such instruments) during the specified period, in return for payments equal to a fixed or floating rate of interest or the total return from another Reference Instrument. Alternately, a total return swap can be structured so that one party will make payments to the other party if the value of a Reference Instrument increases, but receive payments from the other party if the value of that instrument decreases.

**Credit Default Swaps** 

A credit default swap (CDS) is an agreement between two parties whereby one party (the "Protection Buyer") agrees to make payments over the term of the CDS to the other party (the "Protection Seller"), provided that no designated event of default, restructuring or other credit related event (each a "Credit Event") occurs with respect to Reference Instrument that is usually a particular bond, loan or the unsecured credit of an issuer, in general (the "Reference Obligation"). Many CDS are physically settled, which means that if a Credit Event occurs, the Protection Seller must pay the Protection Buyer the full notional value, or "par value," of the Reference Obligation in exchange for delivery by the Protection Buyer of the Reference Obligation or another similar obligation issued by the issuer of the Reference Obligation (the "Deliverable Obligation"). The Counterparties agree to the characteristics of the Deliverable Obligation at the time that they enter into the CDS. Alternately, a CDS can be "cash settled," which means that upon the occurrence of a Credit Event, the Protection Buyer will receive a payment from the Protection Seller equal to the difference between the par amount of the Reference Obligation and its market value at the time of the Credit Event. The Fund and Underlying Fund may be either the Protection Buyer or the Protection Seller in a CDS. If the Fund and Underlying Fund are Protection Buyers and no Credit Event occurs, the Fund and Underlying Fund will lose their entire investment in the CDS (i.e., an amount equal to the payments made to the Protection Seller over the term of the CDS). However, if a Credit Event occurs, the Fund and Underlying Fund (as Protection Buyers) will deliver the Deliverable Obligation and receive a payment equal to the full notional value of the Reference Obligation, even though the Reference Obligation may have little or no value. If the Fund and Underlying Fund are the Protection Sellers and no Credit Event occurs, the Fund and Underlying Fund will receive a fixed rate of income throughout the term of the CDS. However, if a Credit Event occurs, the Fund and Underlying Fund (as Protection Sellers) will pay the Protection Buyer the full notional value of the Reference Obligation and receive the Deliverable Obligation from the Protection Buyer. A CDS may involve greater risks than if the Fund and Underlying Fund invested directly in the Reference Obligation. For example, a CDS may increase credit risk since the Fund and Underlying Fund have exposure to both the issuer of the Reference Obligation and the Counterparty to the CDS.

**Caps and Floors** 

Caps and Floors are contracts in which one party agrees to make payments only if an interest rate or index goes above (Cap) or below (Floor) a certain level in return for a fee from the other party.

**Short Sales** 

The Fund may sell a security short in an effort to take advantage of an anticipated decline in the price of the security. In a short sale, the Fund sells a security it does not own, and must borrow the security in order to deliver it at completion of the sale. The Fund then has an obligation to replace the borrowed security (e.g., to purchase the security at a future date and deliver it to the lender of the security). In order to cover its obligation to purchase such securities in the future, the Fund holds short-term liquid

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securities such as money market funds, U.S. Treasury securities or government agency securities. If the value of the security sold short declines between the time that the Fund borrows the security and the time it repurchases and returns the security to the lender, the Fund makes a profit on the difference (less any interest, fees and/or dividend payments the Fund is required to pay the lender). If it has to buy the security back at a higher price, a loss results. The Fund may incur expenses in selling securities short and such expenses are investment expenses of the Fund.

**OTHER INVESTMENTS, TRANSACTIONS, TECHNIQUES** 

**Reverse Repurchase Agreements** 

Reverse repurchase agreements (which are considered a type of special transaction for asset segregation or asset coverage purposes) are repurchase agreements in which the Fund and Underlying Fund are the sellers (rather than the buyers) of the securities, and agree to repurchase them at an agreed-upon time and price. A reverse repurchase agreement may be viewed as a type of borrowing by the Fund and Underlying Fund. Reverse repurchase agreements are subject to credit risks. In addition, reverse repurchase agreements create leverage risks because the Fund and Underlying Fund must repurchase the underlying security at a higher price, regardless of the market value of the security at the time of repurchase. The Fund and Underlying Fund may borrow an amount up to one third of the Fund's and Underlying Fund's net assets (exclusive of such borrowings) for leverage purposes.

**Hedging** 

Hedging transactions are intended to reduce specific risks. For example, to protect the Fund and Underlying Fund against circumstances that would normally cause the Fund's and Underlying Fund's portfolio securities to decline in value, the Fund and Underlying Fund may buy or sell a derivative contract that would normally increase in value under the same circumstances. The Fund and Underlying Fund may also attempt to hedge by using combinations of different derivative contracts, or derivative contracts and securities. The Fund's and Underlying Fund's ability to hedge may be limited by the costs of the derivative contracts. The Fund and Underlying Fund may attempt to lower the cost of hedging by entering into transactions that provide only limited protection, including transactions that: (1) hedge only a portion of its portfolio; (2) use derivative contracts that cover a narrow range of circumstances; or (3) involve the sale of derivative contracts with different terms. Consequently, hedging transactions will not eliminate risk even if they work as intended. In addition, hedging strategies are not always successful, and could result in increased expenses and losses to the Fund and Underlying Fund.

**Securities Lending** 

The Fund and Underlying Fund may lend portfolio securities to borrowers that the Adviser deems creditworthy. In return, the Fund and Underlying Fund receive cash or liquid securities from the borrower as collateral. The borrower must furnish additional collateral if the market value of the loaned securities increases. Also, the borrower must pay the Fund and Underlying Fund the equivalent of any dividends or interest received on the loaned securities.

The Fund and Underlying Fund will reinvest cash collateral in securities that qualify as an acceptable investment for the Fund and Underlying Fund. However, the Fund and Underlying Fund must pay interest to the borrower for the use of cash collateral. An acceptable investment into which the Fund may reinvest cash collateral includes, among other acceptable investments, securities of affiliated money market funds (including affiliated institutional prime money market funds with a "floating" net asset value that can impose redemption fees and liquidity gates, impose certain operational impediments to investing cash collateral, and, if net asset value decreases, result in the Fund having to cover the decrease in the value of the cash collateral).

Loans are subject to termination at the option of the Fund and Underlying Fund or the borrower. The Fund and Underlying Fund will not have the right to vote on securities while they are on loan. However, the Fund and Underlying Fund will attempt to terminate a loan in an effort to reacquire the securities in time to vote on matters that are deemed to be material by the Adviser. There can be no assurance that the Fund and Underlying Fund will have sufficient notice of such matters to be able to terminate the loan in time to vote thereon. The Fund and Underlying Fund may pay administrative and custodial fees in connection with a loan and may pay a negotiated portion of the interest earned on the cash collateral to a securities lending agent or broker.

Securities lending activities are subject to interest rate risks and counterparty credit risks.

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**Derivatives Regulation and Asset Coverage** 

The regulation of the U.S. and non-U.S. derivatives markets has undergone substantial change in recent years and such change may continue. In addition, effective August 19, 2022, Rule 18f-4 (the "Derivatives Rule") under the Investment Company Act of 1940, as amended (the "1940 Act"), replaced the asset segregation framework previously used by funds to comply with limitations on leverage imposed by the 1940 Act. The Derivatives Rule generally mandates that a fund either limit derivatives exposure to 10% or less of its net assets, or in the alternative implement: (i) limits on leverage calculated based value-at-risk (VAR); and (ii) a written derivatives risk management program (DRMP) administered by a derivatives risk manager appointed by the Fund's Board, including a majority of the independent Board members, that is periodically reviewed by the Board.

As the Fund's derivative exposure, if any, is 10% or less of its net assets, excluding certain currency and interest rate hedging transactions, the Fund is classified as a limited derivatives user under the Derivatives Rule and will not be subject to the full requirements of the Derivatives Rule as noted above, including VAR testing and stress testing, and certain Board reporting requirements. However, the Fund is still required to implement written compliance policies and procedures reasonably designed to manage its derivatives risks and monitor its derivatives exposure daily.

In accordance with the requirements of Section 18 of the 1940 Act, any borrowings by the Fund will be made only to the extent the value of its assets, less its liabilities other than borrowings, is equal to at least 300% of all of its borrowings (the "300% Asset Coverage Ratio"). The Derivatives Rule permits the Fund to enter into reverse repurchase agreements and similar financing transactions, notwithstanding limitations on the issuance of senior securities under Section 18 of the 1940 Act, provided that the Fund either (i) treats these transactions as derivatives transactions under the Derivatives Rule, or (ii) ensures that the 300% Asset Coverage Ratio with respect to such transactions and any other borrowings in the aggregate. While reverse repurchase agreements or similar financing transactions aggregated with other indebtedness do not need to be included in the calculation of whether a fund satisfies the Limited Derivatives Users exception, for funds subject to the VAR testing requirement, reverse repurchase agreements and similar financing transactions must be included for purposes of such testing whether treated as derivatives transactions or not. See "Borrowing Money and Issuing Senior Securities" and "Additional Information" below.

**INTER-FUND BORROWING AND THIRD-PARTY LENDING ARRANGEMENTS** 

**Inter-Fund Borrowing** 

The Securities and Exchange Commission (SEC) has granted an exemption that permits the Fund and all other funds ("Federated Hermes funds") advised by subsidiaries of Federated Hermes, Inc. ("Federated Hermes," formerly, Federated Investors, Inc.) to lend and borrow money for certain temporary purposes directly to and from other Federated Hermes funds. Participation in this inter-fund lending program is voluntary for both borrowing and lending Federated Hermes funds, and an inter-fund loan is only made if it benefits each participating Federated Hermes fund. Federated Hermes administers the program according to procedures approved by the Fund's Board, and the Board monitors the operation of the program. Any inter-fund loan must comply with certain conditions set out in the exemption, which are designed to assure fairness and protect all participating Federated Hermes funds.

For example, inter-fund lending is permitted only: (a) to meet shareholder redemption requests; (b) to meet commitments arising from "failed" trades; and (c) for other temporary purposes. All inter-fund loans must be repaid in seven days or less. The Fund's participation in this program must be consistent with its investment policies and limitations, and must meet certain percentage tests. Inter-fund loans may be made only when the rate of interest to be charged is more attractive to the lending Federated Hermes fund than market-competitive rates on overnight repurchase agreements ("Repo Rate") *and* more attractive to the borrowing Federated Hermes fund than the rate of interest that would be charged by an unaffiliated bank for short-term borrowings ("Bank Loan Rate"), as determined by the Board. The interest rate imposed on inter-fund loans is the average of the Repo Rate and the Bank Loan Rate.

**Third-Party 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. 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 1940 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

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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 the date of this Statement of Additional Information, there were no outstanding loans. During the most recently ended fiscal year, the Fund did not utilize the LOC.

**LIQUIDITY RISK MANAGEMENT PROGRAM** 

The Fund has adopted and implemented a written liquidity risk management program (LRMP) and related procedures to assess and manage the liquidity risk of the Fund in accordance with Section 22(e) of the 1940 Act and Rule 22e-4 thereunder. The Board has designated the Adviser, together with Federated Hermes, Inc.'s ("Federated Hermes," formerly Federated Investors, Inc.) other affiliated registered investment advisory subsidiaries that serve as investment advisers to other Federated Hermes funds, to collectively serve as the administrator of the LRMP and the related procedures (the "Administrator"). Rule 22e-4 defines "liquidity risk" as the risk that the Fund will be unable to meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors' interests in the Fund. As a part of the LRMP, the Administrator is responsible for classifying the liquidity of the Fund's portfolio investments in accordance with Rule 22e-4. As part of the LRMP, the Administrator is also responsible for assessing, managing and periodically reviewing the Fund's liquidity risk, for making periodic reports to the Board and the SEC regarding the liquidity of the Fund's investments, and for notifying the Board and the SEC of certain liquidity events specified in Rule 22e-4. The liquidity of the Fund's portfolio investments is determined based on relevant market, trading and investment-specific considerations under the LRMP.

Investment Risks

There are many risk factors which may affect an investment in the Fund. The Fund's and the Underlying Fund's principal risks are described in its Prospectus or Private Offering Memorandum, respectively. The following information is either additional information in respect of a principal risk factor referenced in the Prospectus or Private Offering Memorandum or information in respect of an additional risk factor applicable to the Fund and the Underlying Fund (in which case there is no related disclosure in the Prospectus or Private Offering Memorandum).

**Risk of Investing in Derivative Contracts and Hybrid Instruments** 

The Fund's and Underlying Fund's exposure to derivative contracts and hybrid instruments (either directly or through its investment in another investment company) involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. First, changes in the value of the derivative contracts and hybrid instruments in which the Fund and Underlying Fund invest may not be correlated with changes in the value of the underlying Reference Instruments or, if they are correlated, may move in the opposite direction than originally anticipated. Second, while some strategies involving derivatives may reduce the risk of loss, they may also reduce potential gains or, in some cases, result in losses by offsetting favorable price movements in portfolio holdings. Third, there is a risk that derivative contracts and hybrid instruments may be erroneously priced or improperly valued and, as a result, the Fund and Underlying Fund may need to make increased cash payments to the counterparty. Fourth, exposure to derivative contracts and hybrid instruments may have tax consequences to the Fund and Underlying Fund and its shareholders. For example, derivative contracts and hybrid instruments may cause the Fund and Underlying Fund to realize increased ordinary income or short-term capital gains (which are treated as ordinary income for Federal income tax purposes) and, as a result, may increase taxable distributions to shareholders. In addition, under certain circumstances certain derivative contracts and hybrid instruments may cause the Fund and Underlying Fund to: (a) incur an excise tax on a portion of the income related to those contracts and instruments; and/or (b) reclassify, as a return of capital, some or all of the distributions previously made to shareholders during the fiscal year as dividend income. Fifth, a common provision in OTC derivative contracts permits the counterparty to terminate any such contract between it and the Fund and Underlying Fund, if the value of the Fund's and Underlying Fund's total net assets declines below a specified level over a given time period. Factors that may contribute to such a decline (which usually must be substantial) include significant shareholder redemptions and/or a marked decrease in the market value of the Fund's and Underlying Fund's investments. Any such termination of the Fund's and Underlying Fund's OTC derivative contracts may adversely affect the Fund and Underlying Fund (for example, by increasing losses and/or costs, and/or preventing the Fund and Underlying Fund from fully implementing its investment strategies). Sixth, the Fund and Underlying Fund may use a derivative contract to benefit from a decline in the value of a Reference Instrument. If the value of the Reference Instrument declines during the term of the contract, the Fund and Underlying Fund make a profit on the difference (less any payments the Fund and Underlying Fund are required to pay under the terms of the contract). Any such strategy involves risk. There is no assurance that the Reference Instrument will decline in value during the term of the contract and make a profit for the Fund and Underlying Fund. The Reference Instrument may instead appreciate in value creating a loss for the Fund and Underlying Fund. Seventh, a default or failure by a CCP or an FCM (also

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sometimes called a "futures broker"), or the failure of a contract to be transferred from an Executing Dealer to the FCM for clearing, may expose the Fund and Underlying Fund to losses, increase its costs, or prevent the Fund and Underlying Fund from entering or exiting derivative positions, accessing margin or fully implementing its investment strategies. The central clearing of a derivative and trading of a contract over a SEF could reduce the liquidity in, or increase costs of entering into or holding, any contracts. Finally, derivative contracts and hybrid instruments may also involve other risks described herein or in the Fund's Prospectus or Underlying Fund's Private Operating Memorandum, such as interest rate, credit, liquidity and leverage risks.

**Risks Associated with the Investment Activities of Other Accounts** 

Investment decisions for the Fund and Underlying Fund are made independently from those of other accounts managed by the Adviser and accounts managed by affiliates of the Adviser. Therefore, it is possible that investment-related actions taken by such other accounts could adversely impact the Fund and Underlying Fund with respect to, for example, the value of Fund and Underlying Fund's portfolio holdings, and/or prices paid to or received by the Fund and Underlying Fund on its portfolio transactions, and/or the Fund's and Underlying Fund's ability to obtain or dispose of portfolio securities. Related considerations are discussed elsewhere in this SAI under "Brokerage Transactions and Investment Allocation."

**Risk of foreign investing** 

Foreign MBS and ABS may pose additional risks because foreign economic or political conditions may be more or less favorable than those of the United States. Securities in foreign markets may also be subject to taxation policies that reduce returns for U.S. investors.

The returns on foreign MBS and ABS may reflect government policies and local market economic conditions that may differ from those that affect MBS and ABS backed by mortgage loans for U.S. residential real estate or pools of assets located in the U.S. These differences offer an opportunity for portfolio diversification and may cause the Fund's or Underlying Fund's performance to be better or worse than the Bloomberg Mortgage-Backed Securities Index.

**RISK OF INVESTING IN CERTAIN MBS** 

MBS backed by participations in reverse mortgages may carry risks different from and in addition to risks of other MBS. A reverse mortgage is a home loan in which a lender makes a loan to a homeowner based on the equity in the home. To qualify for a reverse mortgage loan, a homeowner must be older than a certain specified age. Unlike a traditional mortgage, there are no scheduled payments of principal or interest. Repayment does not occur until, in most cases, the borrower ceases to own the home (including, as a result of the borrower's death) or to use it as a primary residence. Accordingly, the timing of payments made on these loans (and, by extension, MBS backed by such loans) is uncertain and may occur sooner or later than anticipated. The rate of principal and total amount of interest payments on any reverse mortgages is based on many factors, including relevant interest rates and borrower mortality, that may in turn affect the value of the pools of such mortgages. Due to the nature of reverse mortgages, they may react differently from traditional mortgages to economic, geographic and other factors. There is a limited amount of historical data regarding the performance of reverse MBS pools.

**RISK ASSOCIATED WITH COMPLEX CMOs** 

CMOs with complex or highly variable prepayment terms, such as companion classes, IOs, POs, Inverse Floaters and residuals, generally entail greater market, prepayment and liquidity risks than other mortgage-backed securities. For example, their prices are more volatile and their trading market may be more limited.

**SHORT SALE RISK** 

The Fund may incur a loss as a result of a short sale if the price of the security increases between the date of the sale and the date on which the Fund repurchases the security. The risk is that the security's price moves in the opposite direction than expected causing the Fund to lose money.

**LIBOR Risk** 

Certain derivatives or debt securities, or other financial instruments in which the Fund may invest, utilize the London Interbank Offered Rate (LIBOR) as the reference or benchmark rate for interest rate calculations.

LIBOR is a measure of the average interest rate at which major global banks can borrow from one another. LIBOR has historically been quoted in multiple currencies and tenors using data reported by a panel of private-sector banks. Following allegations of rate manipulation in 2012 and concerns regarding its thin liquidity, the use of LIBOR came under increasing pressure, and in July 2017, the UK Financial Conduct Authority, which regulates LIBOR, announced that it will stop

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encouraging banks to provide the quotations needed to sustain LIBOR. The ICE Benchmark Administration Limited, the administrator of LIBOR, ceased publishing most LIBOR tenors, including some USD LIBOR tenors, on December 31, 2021, and will cease publishing the remaining and most liquid USD LIBOR tenors no later than June 30, 2023. Regulators have encouraged the development of and transition to the use of alternative reference or benchmark rates.

While the transition away from LIBOR has become increasingly well-defined in advance of the anticipated discontinuation of LIBOR, the impact on certain debt securities, derivatives and other financial instruments remains uncertain. Further, the process for amending existing contracts or instruments to transition away from LIBOR remains unclear in the absence of global consensus.

It is expected that market participants will amend financial instruments referencing LIBOR to include fallback provisions and other measures that contemplate the discontinuation of LIBOR or other similar market disruption events. However, neither the effect of the transition process nor the viability of such measures is known. To facilitate the transition of legacy derivatives contracts referencing LIBOR, the International Swaps and Derivatives Association, Inc. launched a protocol to incorporate fallback provisions. However, there are obstacles to converting certain longer-term securities and transactions to a new benchmark or benchmarks. For example, certain proposed replacement rates to LIBOR, such as the Secured Overnight Financing Rate (SOFR), which is a broad measure of secured overnight U.S. Treasury repo rates, or the Bloomberg Short-Term Bank Yield Index (BSBY), a proprietary series of credit sensitive reference rates that incorporate bank credit spreads, are materially different from LIBOR, and changes in the applicable spread for financial instruments transitioning away from LIBOR will need to be made to accommodate the differences. In addition, regulators in foreign jurisdictions have proposed alternative replacement rates. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition to alternative rates may be exacerbated if an orderly transition to an alternative reference rate is not completed in a timely manner.

The effectiveness of multiple alternative reference rates as opposed to one primary reference rate has not been determined. The effectiveness of alternative reference rates used in new or existing financial instruments and products has also not yet been determined. As market participants transition away from LIBOR, LIBOR's usefulness may deteriorate, and these effects could be experienced until the permanent cessation of the majority of USD LIBOR rates in 2023. The transition process may lead to increased volatility and illiquidity in markets that currently rely on LIBOR to determine interest rates. LIBOR's deterioration may adversely affect the liquidity and/or market value of securities that use LIBOR as a benchmark interest rate, including securities and other financial instruments held by the Fund. Further, the utilization of an alternative reference rate, or the transition process to an alternative reference rate, may adversely affect the Fund's investment performance.

**CYBERSECURITY AND OPERATIONAL RISK** 

Like other funds and business enterprises, Federated Hermes' business relies on the security and reliability of information and communications technology, systems and networks. Federated Hermes uses digital technology, including, for example, networked systems, email and the Internet, as well as mobile devices and "cloud"-based service offerings, to conduct business operations and engage clients, customers, employees, products, accounts, shareholders and relevant service providers, among others. Federated Hermes, as well as its funds and certain service providers, also generate, compile and process information for purposes of preparing and making filings or reports to governmental agencies, or providing reports or statements to customers, and a cybersecurity attack or incident that impacts that information, or the generation and filing processes, can prevent required regulatory filings and reports from being made, or reports or statements from being delivered, or cause the inadvertent release of confidential information (possibly resulting in the violation of applicable privacy laws). The use of the Internet and other electronic media and technology exposes the Fund, the Fund's shareholders, and the Fund's service providers, and their respective operations, to potential risks from cybersecurity attacks or incidents (collectively, "cyber-events"). The work-from-home environment necessitated by the novel coronavirus ("COVID-19") pandemic has increased the risk of cyber incidents given the increase in cyber attack surface stemming from the use of personal devices and non-office or personal technology.

Cyber-events can result from intentional (or deliberate) attacks or unintentional events by insiders (e.g., employees) or third parties, including cybercriminals, competitors, nation-states and "hacktivists," among others. Cyber-events can include, for example, phishing, credential harvesting or use of stolen access credentials, unauthorized access to systems, networks or devices (such as, for example, through "hacking" activity), structured query language attacks, infection from or spread of malware, ransomware, computer viruses or other malicious software code, corruption of data, exfiltration of data to malicious sites, the dark web or other locations or threat actors, and attacks (including, but not limited to, denial of service attacks on websites) which shut down, disable, slow, impair or otherwise disrupt operations, business processes, technology, connectivity or website or Internet access, functionality or performance. Like other funds and business enterprises, the Fund and its service providers have experienced, and will continue to experience, cyber-events on a daily basis. In addition to intentional cyber-events, unintentional cyber-events can occur, such as, for example, the inadvertent release of confidential information. Cyber-events can

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also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on the service providers' systems or websites rendering them unavailable to intended users or via "ransomware" that renders the systems inoperable until appropriate actions are taken. To date, cyber-events have not had a material adverse effect on the Fund's business operations or performance.

Cyber-events can affect, potentially in a material way, Federated Hermes' relationships with its customers, employees, products, accounts, shareholders and relevant service providers. Any cyber-event could adversely impact the Fund and its shareholders and cause the Fund to incur financial loss and expense, as well as face exposure to regulatory penalties, reputational damage, damage to employee perceptions of the company, and additional compliance costs associated with corrective measures and credit monitoring for impacted individuals. A cyber-event can cause the Fund, or its service providers, to lose proprietary information, suffer data corruption, lose operational capacity (such as, for example, the loss of the ability to process transactions, generate or make filings or deliver reports or statements, calculate the Fund's NAV, or allow shareholders to transact business or other disruptions to operations), and/or fail to comply with applicable privacy and other laws. Among other potentially harmful effects, cyber-events also can result in theft, unauthorized monitoring and failures in the physical infrastructure or operating systems that support the Fund and its service providers. In addition, cyber-events affecting issuers in which the Fund invests could cause the Fund's investments to lose value.

The Fund's Adviser and its relevant affiliates have established risk management systems reasonably designed to seek to reduce the risks associated with cyber-events. The Fund's Adviser employs various measures aimed at mitigating cybersecurity risk, including, among others, use of firewalls, system segmentation, system monitoring, virus scanning, periodic penetration testing, employee phishing training and an employee cybersecurity awareness campaign. Among other service provider management efforts, Federated Hermes also conducts due diligence on key service providers relating to cybersecurity. Federated Hermes has established a committee to oversee Federated Hermes' information security and data governance efforts, and updates on cyber-events and risks are reviewed with relevant committees, as well as Federated Hermes' and the Fund's Boards of Directors or Trustees (or a committee thereof), on a periodic (generally quarterly) basis (and more frequently when circumstances warrant) as part of risk management oversight responsibilities. However, there is no guarantee that the efforts of Federated Hermes, the Fund's Adviser or its affiliates, or other service providers, will succeed, either entirely or partially as there are limits on Federated Hermes' and the Fund's ability to prevent, detect or mitigate cyber-events. Among other reasons, the cybersecurity landscape is constantly evolving, the nature of malicious cyber-events is becoming increasingly sophisticated and the Fund's Adviser, and its relevant affiliates, cannot control the cyber systems and cybersecurity systems of issuers or third-party service providers.

The Fund can be exposed to operational risk arising from a number of factors, including, but not limited to, human error, processing and communication errors, errors of the Fund's service providers, counterparties, or other third parties, failed or inadequate processes and technology or system failures. In addition, other disruptive events, including, but not limited to, natural disasters and public health crises (such as the COVID-19 pandemic), can adversely affect the Fund's ability to conduct business, in particular if the Fund's employees or the employees of its service providers are unable or unwilling to perform their responsibilities as a result of any such event. Even if the Fund's employees and the employees of its service providers are able to work remotely, those remote work arrangements could result in the Fund's business operations being less efficient than under normal circumstances, could lead to delays in its processing of transactions, and could increase the risk of cyber-events.

Investment Objective and Investment Limitations

**Fundamental Investment Objective** 

The Fund's investment objective is to provide total return by investing primarily in a mortgage-backed securities mutual fund and individual mortgage-backed securities, including collateralized mortgage obligations (CMOs).

The Fund's total return will consist of two components: (1) changes in the market value of its portfolio securities (both realized and unrealized appreciation); and (2) income received from its portfolio securities. The investment objective may not be changed by the Fund's Board without shareholder approval.

**Investment Limitations** 

**Concentration** 

The Fund will not make investments that will result in the concentration of its investments in the securities of issuers primarily engaged in the same industry. For purposes of this restriction, the term concentration has the meaning set forth in the Investment Company Act of 1940 ("1940 Act"), any rule or order thereunder, or any SEC staff interpretation thereof. Government securities, municipal securities and bank instruments will not be deemed to constitute an industry.

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**Underwriting** 

The Fund may not underwrite the securities of other issuers, except that the Fund may engage in transactions involving the acquisition, disposition or resale of its portfolio securities, under circumstances where it may be considered to be an underwriter under the Securities Act of 1933.

**Investing in Commodities** 

The Fund may not purchase or sell physical commodities, provided that the Fund may purchase securities of companies that deal in commodities. For purposes of this restriction, investments in transactions involving futures contracts and options, forward currency contracts, swap transactions and other financial contracts or derivative instruments that settle by payment of cash are not deemed to be investments in commodities.

**Investing in Real Estate** 

The Fund may not purchase or sell real estate, provided that this restriction does not prevent the Fund from investing in issuers which invest, deal, or otherwise engage in transactions in real estate or interests therein, or investing in securities that are secured by real estate or interests therein. The Fund may exercise its rights under agreements relating to such securities, including the right to enforce security interests and to hold real estate acquired by reason of such enforcement until that real estate can be liquidated in an orderly manner.

**Borrowing Money and Issuing Senior Securities** 

The Fund may borrow money, directly or indirectly, and issue senior securities to the maximum extent permitted under the 1940 Act, any rule or order thereunder, or any SEC staff interpretation thereof.

**Lending** 

The Fund may not make loans, provided that this restriction does not prevent the Fund from purchasing debt obligations, entering into repurchase agreements, lending its assets to broker/dealers or institutional investors and investing in loans, including assignments and participation interests.

**The above limitations cannot be changed unless authorized by the Board and by the vote of a majority of the Fund's outstanding voting securities, as defined by the 1940 Act. The following limitations, however, may be changed by the Board without shareholder approval. Shareholders will be notified before any material change in these limitations becomes effective.**

**Illiquid Investments** 

The Fund will not make investments in holdings for which there is no readily available market, or enter into repurchase agreements or purchase time deposits that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment, if immediately after and as a result, the value of such investments would exceed, in the aggregate, 15% of the Fund's net assets.

**Purchases on Margin** 

The Fund will not purchase securities on margin, provided that the Fund may obtain short-term credits necessary for the clearance of purchases and sales of securities and further provided that the Fund may make margin deposits in connection with its use of financial options and futures, forward and spot currency contracts, swap transactions and other financial contracts or derivative instruments.

**Pledging Assets** 

The Fund will not mortgage, pledge or hypothecate any of its assets, provided that this shall not apply to the transfer of securities in connection with any permissible borrowing or to collateral arrangements in connection with permissible activities.

**Additional Information** 

As a matter of non-fundamental investment policy regarding certain of the Fund's investment restrictions, please note the following additional information.

In applying the concentration restriction, the Fund will adhere to the requirements of the 1940 Act which limits investments in a particular industry or group of industries to no more than 25% of the value of the Fund's total assets. Further, in applying the concentration restriction: (a) utility companies will be divided according to their services, for example, gas, gas transmission, electric and telephone will each be considered a separate industry; (b) financial service companies will be classified according to the end users of their services, for example, automobile finance, bank finance and diversified finance will each be considered a separate industry; and (c) asset-backed securities will be classified according to the underlying assets securing such securities.

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For purposes of the above limitations, the Fund considers certificates of deposit and demand and time deposits issued by a U.S. branch of a domestic bank or savings association having capital, surplus and undivided profits in excess of $100,000,000 at the time of investment to be "cash items" and "bank instruments." Except with respect to borrowing money, if a percentage limitation is adhered to at the time of investment, a later increase or decrease in percentage resulting from any change in value or net assets will not result in a violation of such limitation.

In applying the borrowing limitation, in accordance with Section 18(f)(1) of the 1940 Act and current SEC rules and guidance, the Fund is permitted to borrow money, directly or indirectly, provided that immediately after any such borrowing, the Fund has asset coverage of at least 300% for all of the Fund's borrowings, and provided further that in the event that such asset coverage shall at any time fall below 300% the Fund shall, within three business days, reduce the amount of its borrowings to an extent that the asset coverage of such borrowings shall be at least 300%.

**Non-Fundamental Names Rule Policy** 

The Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in mortgage investments. The Fund will notify shareholders at least 60 days in advance of any change in its investment policy that would enable the Fund to invest, under normal circumstances, less than 80% of its net assets (plus any borrowings for investment purposes) in mortgage investments.

What Do Shares Cost?

**Valuation Of Portfolio Securities by the Fund and the Underlying Fund** 

A Share's NAV is determined as of the end of regular trading on the New York Stock Exchange (NYSE) (normally 4:00 p.m. Eastern time) each day the NYSE is open. The Fund and the Underlying Fund each calculate their NAV by valuing their assets, subtracting their liabilities and dividing the balance by the number of shares outstanding. The NAV is calculated to the nearest whole cent per share.

In calculating its NAV, the Fund and the Underlying Fund generally values investments as follows:

◾ Equity securities listed on a U.S. securities exchange or traded through the U.S. national market system are valued at their last reported sale price or official closing price in their principal exchange or market. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and ask quotations from one or more dealers.

◾ Other equity securities traded primarily in the United States are valued based upon the mean of closing bid and ask quotations from one or more dealers.

◾ Equity securities traded primarily through securities exchanges and regulated market systems outside the United States are valued at their last reported sale price or official closing price in their principal exchange or market. These prices may be adjusted for significant events occurring after the closing of such exchanges or market systems as described below. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and ask quotations from one or more dealers.

◾ Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Adviser. The methods used by pricing services to determine such price evaluations are described below.

◾ Futures contracts listed on exchanges are valued at their reported settlement price. Option contracts listed on exchanges are based upon the mean of closing bid and ask quotations reported by the exchange or from one or more futures commission merchants.

◾ OTC derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation from a pricing service is not readily available, such derivative contracts may be fair valued based upon price evaluations from one or more dealers or using a recognized pricing model for the contract.

◾ Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. The prospectuses for these mutual funds explain the circumstances under which they will use fair value pricing and the effects of using fair value pricing.

If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund and the Underlying 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, or if information furnished by a pricing service, in the opinion of the Valuation Committee, is deemed not representative of the fair value of such security, the

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Fund and the Underlying Fund will use the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund and the Underlying Fund could purchase or sell an investment at the price used to calculate the Fund's and the Underlying Fund's NAV. The Fund and the Underlying Fund will not use a pricing service or dealer who is an affiliated person of the Adviser to value investments.

Non-investment assets and liabilities are valued in accordance with U.S. Generally Accepted Accounting Principles (GAAP). The NAV calculation includes expenses, dividend income, interest income, other income and realized and unrealized investment gains and losses through the date of the calculation. Changes in holdings of investments and in the number of outstanding shares are included in the calculation not later than the first business day following such change. Any assets or liabilities denominated in foreign currencies are converted into U.S. dollars using an exchange rate obtained from a third-party.

The Fund and the Underlying Fund follow procedures that are common in the mutual fund industry regarding errors made in the calculation of its NAV. This means that, generally, the Fund and the Underlying Fund will not correct errors of less than one cent per Share.

**Fair Valuation and Significant Events Procedures** 

Pursuant to Rule 2a-5 under the Investment Company Act of 1940, the Board has designated the Adviser as the Fund's and the Underlying Fund's valuation designee to perform the fair value determination for securities and other assets held by the Fund and the Underlying Fund. 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 price evaluations of the current fair value of certain investments for purposes of calculating the NAV. The Valuation Committee is subject to Board oversight and certain reporting and other requirements intended to provide the Board the information it needs to oversee the Adviser's fair valuation determinations.

***Pricing Service Valuations.*** The Valuation Committee, subject to Board oversight, is authorized to use pricing services that provide daily fair value evaluations of the current value of certain investments, primarily fixed-income securities and OTC derivatives contracts. Different pricing services may provide different price evaluations for the same security because of differences in their methods of evaluating market values. 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. A pricing service may find it more difficult to apply these and other factors to relatively illiquid or volatile investments, which may result in less frequent or more significant changes in the price evaluations of these investments. If a pricing service determines that it does not have sufficient information to use its standard methodology, it may evaluate an investment based on the present value of what investors can reasonably expect to receive from the issuer's operations or liquidation.

Special valuation considerations may apply with respect to the Fund's "odd-lot" positions, if any, as the Fund may receive lower prices when it sells such positions than it would receive for sales of institutional round lot positions. Typically, these securities are valued assuming orderly transactions of institutional round lot sizes, but the Fund may hold or, from time to time, transact in such securities in smaller, odd lot sizes.

The Valuation Committee oversees the Fund's and the Underlying Fund's pricing services, which includes, among other things, monitoring significant or unusual price fluctuations above predetermined tolerance levels from the prior day, back-testing of pricing services' prices against actual sale transactions, conducting periodic due diligence meetings and reviews and periodically reviewing the inputs, assumptions and methodologies used by these pricing services. If information furnished by a pricing service is not readily available or, in the opinion of the Valuation Committee, is deemed not representative of the fair value of such security, the security will be fair valued by the Valuation Committee in accordance with procedures established by the Adviser as discussed below in "*Fair Valuation Procedures*."

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 bid and ask prices for the investment (a "mid" evaluation). The Fund and the Underlying Fund normally use bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund and the Underlying Fund normally use mid evaluations for any other types of fixed-income securities and any OTC derivative contracts.

***Fair Valuation Procedures.*** The Adviser has established procedures for determining the fair value of investments for which price evaluations from pricing services or dealers and market quotations are not readily available. The procedures define an investment's "fair value" as the price that the Fund and the Underlying Fund might reasonably expect to receive upon its current sale. The procedures assume that any sale would be made to a willing buyer in the ordinary course of trading. The procedures require consideration of factors that vary based on the type of investment and the information available. Factors that may be

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considered in determining an investment's fair value include: (1) the last reported price at which the investment was traded; (2) information provided by dealers or investment analysts regarding the investment or the issuer; (3) changes in financial conditions and business prospects disclosed in the issuer's financial statements and other reports; (4) publicly announced transactions (such as tender offers and mergers) involving the issuer; (5) comparisons to other investments or to financial indices that are correlated to the investment; (6) with respect to fixed-income investments, changes in market yields and spreads; (7) with respect to investments that have been suspended from trading, the circumstances leading to the suspension; and (8) other factors that might affect the investment's value.

The Valuation Committee is responsible for the day-to-day implementation of these procedures subject to the oversight of the Board. The Valuation Committee may also authorize the use of a financial valuation model to determine the fair value of a specific type of investment. The Board periodically reviews the fair valuations made by the Valuation Committee. The Board has also approved the Adviser's fair valuation procedures and significant events procedures as part of the Fund's and the Underlying Fund's compliance program and will review any changes made to the procedures.

Using fair value to price investments may result in a value that is different from an investment's most recent closing price and from the prices used by other registered funds to calculate their NAVs. The application of the fair value procedures to an investment represents a good faith determination of such investment's fair value. 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 could be materially different.

***Significant Events.*** The Adviser has adopted procedures requiring an investment to be priced at its fair value whenever the Adviser 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 dealer, include:

◾ With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;

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

◾ Announcements concerning matters such as acquisitions, recapitalizations or 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. The pricing service uses models that correlate changes between the closing and opening price of equity securities traded primarily in non-U.S. markets to changes in prices in U.S.-traded securities and derivative contracts. The pricing service seeks to employ the model that provides the most significant correlation based on a periodic review of the results. The model uses the correlation to adjust the reported closing price of a foreign equity security based on information available up to the close of the NYSE.

The fair valuation of securities following a significant event can serve to reduce arbitrage opportunities for short-term traders to profit at the expense of long-term investors in the Fund. For example, such arbitrage opportunities may exist when the market on which portfolio securities are traded closes before the Fund calculates its NAV, which is typically the case with Asian and European markets. However, there is no assurance that these significant event procedures will prevent dilution of the NAV by short-term traders.

For other significant events, the Fund and the Underlying 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 fair value of the investment is determined using the methods discussed above in "*Fair Valuation Procedures*." The Board periodically reviews fair valuations made in response to significant events.

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How to Invest in the Fund?

The Fund is used to implement Fixed-Income Strategies for investors in wrap fee accounts or separately managed accounts that are advised or subadvised by FIC, or its affiliates (i.e., Eligible Accounts). The Fund may also be used to implement Fixed-Income Strategies for Eligible Investors in separately managed or other discretionary investment accounts (i.e., also Eligible Accounts) that are advised or subadvised by FIC, its affiliates or, in certain cases, by other third-party discretionary investment managers that have a business relationship with FIC. Shares of the Fund held for an Eligible Investor may be purchased only at the direction of FIC or another Discretionary Manager of the Eligible Account.

Eligible Investors in the Fund do not include investment companies under the Investment Company Act of 1940 ("1940 Act"), or private funds exempt from registration under the 1940 Act pursuant to Sections 3(c)(1) or 3(c)(7) of the 1940 Act, unless appropriate exemptive relief is obtained under the 1940 Act and the Fund determines to accept the purchase order for such an investment. In addition, unless the Fund determines to accept a purchase order for an investment, an Eligible Investor in the Fund does not include: (i) a non-resident alien within the meaning of I.R.C. § 7701(b)(1)(B) who is a natural person; (ii) a covered expatriate (i.e., a U.S. citizen temporarily residing abroad) within the meaning of I.R.C. § 877A(g)(1)(A); (iii) a foreign institutional investor; or (iv) a fund or investor in the European Union.

At any time that an investor in the Fund ceases to be an Eligible Investor and FIC (or its affiliate) is acting in a discretionary capacity, the Fund will redeem the Fund's Shares held by such investor. At any time that an investor in the Fund (through a relationship with a third-party discretionary manager that has a business relationship with FIC (or its affiliate)) ceases to be an Eligible Investor, the third-party discretionary manager will redeem the Fund's Shares held by such investor. In all circumstances, Federated Securities Corp. reserves the right to authorize the liquidation of shares for ineligible investors.

**Additional Payments To Financial Intermediaries**

The Distributor may pay out of its own resources amounts to certain financial intermediaries, including broker-dealers, banks, registered investment advisers, independent financial planners and retirement plan administrators. In some cases, such payments may be made by, or funded from the resources of, companies affiliated with the Distributor (including the Adviser). While Financial Industry Regulatory Authority, Inc. (FINRA) regulations limit the sales charges that you may bear, there are no limits with regard to the amounts that the Distributor may pay out of its own resources. In connection with these payments, the financial intermediary may elevate the prominence or profile of the Fund and/or other Federated Hermes funds within the financial intermediary's organization by, for example, placement on a list of preferred or recommended funds, and/or granting the Distributor preferential or enhanced opportunities to promote the funds in various ways within the financial intermediary's organization. The same financial intermediaries may receive payments under more than one or all categories. These payments assist in the Distributor's efforts to support the sale of Shares. These payments are negotiated and may be based on such factors as: the number or value of Shares that the financial intermediary sells or may sell; the value of client assets invested; the level and types of services or support furnished by the financial intermediary; or the Fund's and/or other Federated Hermes funds' relationship with the financial intermediary. Not all financial intermediaries receive such payments and the amount of compensation may vary by intermediary. You should ask your financial intermediary for information about any payments it receives from the Distributor or the Federated Hermes funds and any services it provides, as well as the fees and/or commissions it charges.

The categories of additional payments are described below.

**Supplemental Payments** 

The Distributor may make supplemental payments to certain financial intermediaries that are holders or dealers of record for accounts in one or more of the Federated Hermes funds. These payments may be based on such factors as: the number or value of Shares the financial intermediary sells or may sell; the value of client assets invested; or the type and nature of services or support furnished by the financial intermediary.

**Processing Support Payments** 

The Distributor may make payments to certain financial intermediaries that sell Federated Hermes fund shares to help offset their costs associated with client account maintenance support, statement processing and transaction processing. The types of payments that the Distributor may make under this category include: payment of ticket charges on a per-transaction basis; payment of networking fees; and payment for ancillary services such as setting up funds on the financial intermediary's mutual fund trading system.

**17**

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**Retirement Plan Program Servicing Payments** 

The Distributor may make payments to certain financial intermediaries who sell Federated Hermes fund shares through retirement plan programs. A financial intermediary may perform retirement plan program services itself or may arrange with a third party to perform retirement plan program services. In addition to participant recordkeeping, reporting or transaction processing, retirement plan program services may include: services rendered to a plan in connection with fund/investment selection and monitoring; employee enrollment and education; plan balance rollover or separation; or other similar services.

**Marketing Support Payments** 

From time to time, the Distributor, at its expense, may provide additional compensation to financial intermediaries that sell or arrange for the sale of Shares. Such compensation, provided by the Distributor, may include financial assistance to financial intermediaries that enable the Distributor to participate in or present at conferences or seminars, sales or training programs for invited registered representatives and other employees, client entertainment, client and investor events and other financial intermediary-sponsored events. The Distributor may also provide additional compensation to financial intermediaries for services rendered in connection with technology and programming set-up, platform development and maintenance or similar services and for the provision of sales-related data to the Adviser and/or its affiliates.

The Distributor also may hold or sponsor, at its expense, sales events, conferences and programs for employees or associated persons of financial intermediaries and may pay the travel and lodging expenses of attendees. The Distributor also may provide, at its expense, meals and entertainment in conjunction with meetings with financial intermediaries. Other compensation may be offered to the extent not prohibited by applicable federal or state law or regulations, or the rules of any self-regulatory agency, such as FINRA. These payments may vary depending on the nature of the event or the relationship.

For the year ended December 31, 2022, the following is a list of FINRA member firms that received additional payments from the Distributor or an affiliate. Additional payments may also be made to certain other financial intermediaries that are not FINRA member firms that sell Federated Hermes fund shares or provide services to the Federated Hermes funds and shareholders. These firms are not included in this list. Any additions, modifications or deletions to the member firms identified in this list that have occurred since December 31, 2022, are not reflected. You should ask your financial intermediary for information about any additional payments it receives from the Distributor.

ADP Broker-Dealer, Inc.

American Enterprise Investment Services Inc.

American Portfolios Advisors, Inc.

Aspyre Wealth Partners

Avidian Wealth Solutions LLC

B. C. Ziegler And Company

Beam Wealth Advisors, Inc.

Benjamin F. Edwards & Company, Inc.

BMO Harris Financial Advisors, Inc.

BofA Securities, Inc.

Bolton Global Capital, Inc.

Broadridge Business Process Outsourcing, LLC

Brown Investment Advisory & Trust Company

Cadaret, Grant & Co., Inc.

Cambridge Financial Group, Inc.

CBIZ Financial Solutions, Inc.

Cetera Advisor Networks LLC

Cetera Advisors LLC

Cetera Investment Services LLC

Charles Schwab & Company, Inc.

Citigroup Global Markets Inc.

Citizens Securities, Inc.

Comerica Securities, Inc.

Commonwealth Financial Network

D A Davidson & Co.

Davenport & Company LLC

Deutsche Bank Securities Inc.

Edward D. Jones & Co., LP

Emerald Advisors, LLC

Empower Financial Services, Inc.

Envestnet PMC

FBL Marketing Services, LLC

Fidelity Investments Institutional Operations Company, Inc. (FIIOC)

Fifth Third Securities, Inc.

FIS Brokerage & Securities Services LLC

Gerber Kawasaki Wealth & Investment Management

Goldman Sachs & Co. LLC

Hancock Whitney Investment Services Inc.

HighTower Securities, LLC

Hilltop Securities, Inc.

HUB International Investment Services Inc.

The Huntington Investment Company

Huntington Securities, Inc.

IFP Securities, LLC

Insigneo Securities, LLC

Institutional Cash Distributors, LLC

Interactive Brokers LLC

J.P. Morgan Securities LLC

Janney Montgomery Scott LLC

Jefferies LLC

KeyBanc Capital Markets Inc.

Kowal Investment Group, LLC

Leafhouse Financial Advisors, LLC

Lincoln Financial Advisors Corporation

Lincoln Financial Distributors, Inc.

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Lincoln Investment Planning, LLC

LPL Financial LLC

Lyrical Partners, L.P.

MML Investors

Materetsky Financial Group

Merrill Lynch, Pierce, Fenner and Smith Incorporated

Moneta Group Investment Advisors, LLC

Morgan Stanley Smith Barney LLC

National Financial Services LLC

Nationwide Investment Services Corporation

NewEdge Securities, Inc.

Northwestern Mutual Investment Services, LLC

NYLIFE Distributors LLC

Open Range Financial Group, LLC

Oppenheimer & Company, Inc.

Paychex Securities Corp

Pensionmark Financial Group, LLC

Pershing LLC

PNC Capital Markets, LLC

PNC Investments LLC

Private Client Services, LLC

Raymond James & Associates, Inc.

Raymond James Financial Services, Inc.

RBC Capital Markets, LLC

Rise Consulting, LLC

Robert W Baird & Co. Incorporated

Rockefeller Capital Management

Royal Alliance Associates, Inc.

Sagepoint Financial, LLC

Sageview Advisory Group, LLC

Sanford C. Bernstein & Company, LLC

SBC Wealth Management

Securian Financial Services, Inc.

Securities America, Inc.

Security Distributors, LLC

Spire Securities, LLC

State Street Global Markets, LLC

Stephens Inc.

Steward Partners Investment Advisory, LLC

Stifel, Nicolaus & Company, Incorporated

Strategic Financial Partners, Ltd

TD Ameritrade, Inc.

Teachers Insurance and Annuity Association of America

The London Company of Virginia LLC

Towerpoint Wealth, LLC

Truist Investment Services, Inc.

Truist Securities, Inc.

U.S. Bancorp Investments, Inc.

UBS Financial Services Inc.

UBS Securities LLC

UMB Financial Services, Inc.

United Planners Financial Services of America, L.P.

Validus Capital LLC

Vanguard Marketing Corporation

Veridian Capital Partners

Vining-Sparks IBG, LLC

Vision Financial Markets, LLC

Voya Financial Advisors, Inc.

Wells Fargo Clearing Services LLC

Wells Fargo Securities, LLC

Woodbury Financial Services, Inc.

WR Wealth Planners LLC

XML Financial Group

Purchases In-Kind

You may contact the Distributor to request a purchase of Shares using securities you own. The Fund reserves the right to determine whether to accept your securities and the minimum market value to accept. The Fund will value your securities in the same manner as it values its assets. An in-kind purchase may be treated as a sale of your securities for federal tax purposes; please consult your tax adviser regarding potential tax liability.

Redemption In-Kind

Although the Fund generally intends to pay Share redemptions in cash, it reserves the right, on its own initiative or in response to a shareholder request, to pay the redemption price in whole or in part by a distribution of the Fund's portfolio securities.

Because the Fund has elected to be governed by Rule 18f-1 under the 1940 Act, the Fund is obligated to pay Share redemptions to any one shareholder in cash only up to the lesser of $250,000 or 1% of the net assets represented by such Share class during any 90-day period.

Any Share redemption payment greater than this amount will also be in cash unless the Fund elects to pay all or a portion of the remainder of the redemption in portfolio securities, valued in the same way as the Fund determines its NAV.

Redemption in-kind is not as liquid as a cash redemption. Shareholders receiving the portfolio securities could have difficulty selling them, may incur related transaction costs and would be subject to risks of fluctuations in the securities' values prior to sale.

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Massachusetts Partnership Law

Under certain circumstances, shareholders may be held personally liable as partners under Massachusetts law for obligations of the Trust. To protect its shareholders, the Trust has filed legal documents with Massachusetts that expressly disclaim the liability of its shareholders for acts or obligations of the Trust.

In the unlikely event a shareholder is held personally liable for the Trust's obligations, the Trust is required by the Declaration of Trust to use its property to protect or compensate the shareholder. On request, the Trust will defend any claim made and pay any judgment against a shareholder for any act or obligation of the Trust. Therefore, financial loss resulting from liability as a shareholder will occur only if the Trust itself cannot meet its obligations to indemnify shareholders and pay judgments against them.

Account and Share Information

**Voting Rights** 

Each Share of the Fund gives the shareholder one vote in Trustee elections and other matters submitted to shareholders for vote.

All Shares of the Trust have equal voting rights, except that in matters affecting only a particular Fund or class, only Shares of that Fund or class are entitled to vote.

Trustees may be removed by the Board or by shareholders at a special meeting. A special meeting of shareholders will be called by the Board upon the written request of shareholders who own at least 10% of the Trust's outstanding Shares of all series entitled to vote.

As of February 7, 2023, the following shareholders owned of record, beneficially, or both, 5% or more of outstanding Shares: Raymond James, St. Petersburg, FL, owned approximately 14,606,006 Shares (40.34%); Morgan Stanley Smith Barney, New York, NY, owned approximately 11,003,193 Shares (30.39%); Zions First National Bank, Salt Lake City, UT, owned approximately 4,908,439 Shares (13.55%) and The Fulton Company, Lancaster, PA, owned approximately 2,673,535 Shares (7.38%).

Shareholders owning 25% or more of outstanding Shares may be in control and be able to affect the outcome of certain matters presented for a vote of shareholders.

Raymond James Financial Services, Inc. is organized in the State of Florida.Morgan Stanley Smith Barney LLC is organized in the State of Delaware.

Tax Information

**Federal Income Tax** 

The Fund intends to meet requirements of Subchapter M of the Internal Revenue Code (the "Code") applicable to regulated investment companies. If these requirements are not met, it will not receive special tax treatment and will be subject to federal corporate income tax.

The Fund will be treated as a single, separate entity for federal income tax purposes so that income earned and capital gains and losses realized by the Trust's other portfolios will be separate from those realized by the Fund.

The Fund is entitled to a loss carryforward, which may reduce the taxable income or gain that the Fund would realize, and to which the shareholder would be subject, in the future.

**Tax Basis Information** 

The Fund's Transfer Agent and/or your financial intermediary is required to provide you with the cost basis information on the sale of any of your Shares in the Fund, subject to certain exceptions.

**FOREIGN INVESTMENTS** 

If the Fund or the Underlying Fund purchase foreign securities, its investment income may be subject to foreign withholding or other taxes that could reduce the return on these securities. Tax treaties between the United States and foreign countries, however, may reduce or eliminate the amount of foreign taxes to which the Fund or the Underlying Fund would be subject. The effective rate of foreign tax cannot be predicted since the amount of Fund or Underlying Fund assets to be invested within various countries is uncertain. However, the Fund and the Underlying Fund intend to operate so as to qualify for treaty-reduced tax rates when applicable.

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Distributions from the Fund or Underlying Fund may be based on estimates of book income for the year. Book income generally consists solely of the income generated by the securities in the portfolio, whereas tax-basis income includes, in addition, gains or losses attributable to currency fluctuation. Due to differences in the book and tax treatment of fixed-income securities denominated in foreign currencies, it is difficult to project currency effects on an interim basis. Therefore, to the extent that currency fluctuations cannot be anticipated, a portion of distributions to shareholders could later be designated as a return of capital, rather than income, for income tax purposes, which may be of particular concern to simple trusts.

If more than 50% of the value of the Fund's or the Underlying Fund's assets at the end of the tax year is represented by stock or securities of foreign corporations, the Fund or the Underlying Fund will qualify for certain Code provisions that allow their shareholders to claim a foreign tax credit or deduction on their U.S. income tax returns. The Code may limit a shareholder's ability to claim a foreign tax credit. Shareholders who elect to deduct their portion of the Fund's foreign taxes rather than take the foreign tax credit must itemize deductions on their income tax returns.

Who Manages and Provides Services to the Fund?

**Board of Trustees** 

The Board of Trustees is responsible for managing the Trust's business affairs and for exercising all the Trust's powers except those reserved for the shareholders. The following tables give information about each Trustee and the senior officers of the Fund. Where required, the tables separately list Trustees who are "interested persons" of the Fund (i.e., "Interested" Trustees) and those who are not (i.e., "Independent" Trustees). Unless otherwise noted, the address of each person listed is 1001 Liberty Avenue, Pittsburgh, PA 15222-3779. The address of all Independent Trustees listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2022, the Trust comprised five portfolios, and the Federated Hermes Complex consisted of 33 investment companies (comprising 102 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Trustee oversees all portfolios in the Federated Hermes Complex and serves for an indefinite term.

As of February 7, 2023, the Fund's Board and Officers as a group owned less than 1% of the Fund's outstanding Shares.

**qualifications of Independent Trustees** 

Individual Trustee qualifications are noted in the "Independent Trustees Background and Compensation" chart. In addition, the following characteristics are among those that were considered for each existing Trustee and will be considered for any Nominee Trustee.

◾ Outstanding skills in disciplines deemed by the Independent Trustees to be particularly relevant to the role of Independent Trustee and to the Federated Hermes funds, including legal, accounting, business management, the financial industry generally and the investment industry particularly.

◾ Desire and availability to serve for a substantial period of time, taking into account the Board's current mandatory retirement age of 75 years.

◾ No conflicts which would interfere with qualifying as independent.

◾ Appropriate interpersonal skills to work effectively with other Independent Trustees.

◾ Understanding and appreciation of the important role occupied by Independent Trustees in the regulatory structure governing regulated investment companies.

◾ Diversity of background.

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**Interested Trustees Background and Compensation** 

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| | | | |
|:---|:---|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust**<br> **Date Service Began**<br>| &nbsp;&nbsp; **Principal Occupation(s) for Past Five Years,** <br> **Other Directorships Held and Previous Position(s)**<br>| **Aggregate**<br> **Compensation**<br> **From Fund**<br> **(past fiscal year)**<br>| **Total Compensation**<br> **From Fund and**<br> **Federated Hermes Complex**<br> **(past calendar year)**<br>|
| **J. Christopher Donahue\***<br> Birth Date: April 11, 1949<br> President and Trustee<br> Indefinite Term<br> Began serving: October 2005<br>| &nbsp;&nbsp; **Principal Occupations:** Principal Executive Officer and President of certain <br> of the Funds in the Federated Hermes Complex; Director or Trustee of the <br> Funds in the Federated Hermes Complex; President, Chief Executive <br> Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, <br> Federated Investment Management Company; Trustee, Federated <br> Investment Counseling; Chairman and Director, Federated Global <br> Investment Management Corp.; Chairman and Trustee, Federated Equity <br> Management Company of Pennsylvania; Trustee, Federated Shareholder <br> Services Company; Director, Federated Services Company.<br> **Previous Positions:** President, Federated Investment Counseling; President <br> and Chief Executive Officer, Federated Investment Management Company, <br> Federated Global Investment Management Corp. and Passport <br> Research, Ltd.; Chairman, Passport Research, Ltd.<br>| $0 | $0 |
| **John B. Fisher\***<br> Birth Date: May 16, 1956<br> Trustee<br> Indefinite Term<br> Began serving: May 2016<br>| &nbsp;&nbsp; **Principal Occupations:** Principal Executive Officer and President of certain <br> of the Funds in the Federated Hermes Complex; Director or Trustee of <br> certain of the Funds in the Federated Hermes Complex; Director and Vice <br> President, Federated Hermes, Inc.; President, Director/Trustee and CEO, <br> Federated Advisory Services Company, Federated Equity Management <br> Company of Pennsylvania, Federated Global Investment Management <br> Corp., Federated Investment Counseling, Federated Investment <br> Management Company and Federated MDTA LLC; Director, Federated <br> 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>| $0 | $0 |

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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 Trustees Background, Qualifications and Compensation** 

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| | | | |
|:---|:---|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust**<br> **Date Service Began**<br>| &nbsp;&nbsp; **Principal Occupation(s) and Other Directorships Held for** <br> **Past Five Years, Previous Position(s) and Qualifications**<br>| **Aggregate**<br> **Compensation**<br> **From Fund**<br> **(past fiscal year)**<br>| **Total Compensation**<br> **From Fund and**<br> **Federated Hermes Complex**<br> **(past calendar year)**<br>|
| **John T. Collins**<br> Birth Date: January 24, 1947<br> Trustee<br> Indefinite Term<br> Began serving: October 2013<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee and Chair of the Board of <br> Directors or Trustees, of the Federated Hermes Complex; formerly, <br> Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired).<br> **Other Directorships Held:** Director, KLX Energy Services Holdings, Inc. <br> (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 Group, <br> Inc. (a private equity firm) and as a Director of KLX Corp. Mr. Collins serves <br> as Chairman Emeriti, Bentley University. Mr. Collins previously served as <br> Director and Audit Committee Member, Bank of America Corp.; Director, <br> FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical <br> Center (Harvard University Affiliate Hospital).<br>| $407.58 | $385000  |

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| | | | |
|:---|:---|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust**<br> **Date Service Began**<br>| &nbsp;&nbsp; **Principal Occupation(s) and Other Directorships Held for** <br> **Past Five Years, Previous Position(s) and Qualifications**<br>| **Aggregate**<br> **Compensation**<br> **From Fund**<br> **(past fiscal year)**<br>| **Total Compensation**<br> **From Fund and**<br> **Federated Hermes Complex**<br> **(past calendar year)**<br>|
| **G. Thomas Hough**<br> Birth Date: February 28, 1955<br> Trustee<br> Indefinite Term<br> Began serving: August 2015<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee, Chair of the Audit Committee <br> of the Federated Hermes Complex; 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, Inc.; <br> formerly, Director, Member of Governance and Compensation Committees, <br> Publix Super Markets, Inc.<br> **Qualifications:** Mr. Hough has served in accounting, business management <br> and directorship positions throughout his career. Mr. Hough most recently <br> held the position of Americas Vice Chair of Assurance with Ernst & <br> Young LLP (public accounting firm). Mr. Hough serves on the President's <br> Cabinet and Business School Board of Visitors for the University of <br> Alabama. Mr. Hough previously served on the Business School Board of <br> Visitors for Wake Forest University, and he previously served as an <br> Executive Committee member of the United States Golf Association.<br>| $386.41 | $365000 |
| **Maureen Lally-Green**<br> Birth Date: July 5, 1949<br> Trustee<br> Indefinite Term<br> Began serving: August 2009<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee of the Federated Hermes <br> Complex; Adjunct Professor Emerita of Law, Duquesne University School of <br> Law; formerly, Dean of the Duquesne University School of Law and <br> Professor of Law and Interim Dean of the Duquesne University School of <br> Law; formerly, Associate General Secretary and Director, Office of Church <br> 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 business <br> roles and directorship positions throughout her career. Judge Lally-Green <br> previously held the position of Dean of the School of Law of Duquesne <br> University (as well as Interim Dean). Judge Lally-Green previously served as <br> Associate General Secretary for the Diocese of Pittsburgh, a member of the <br> Superior Court of Pennsylvania and as a Professor of Law, Duquesne <br> University School of Law. Judge Lally-Green was appointed by the Supreme <br> Court of Pennsylvania to serve on the Supreme Court's Board of Continuing <br> Judicial Education and the Supreme Court's Appellate Court Procedural <br> Rules Committee. Judge Lally-Green also currently holds the positions on <br> not for profit or for profit boards of directors as follows: Director and Chair, <br> UPMC Mercy Hospital; Regent, Saint Vincent Seminary; Member, <br> Pennsylvania State Board of Education (public); Director, Catholic Charities, <br> Pittsburgh; and Director, CNX Resources Corporation (natural gas). Judge <br> Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy <br> Foundation of Western and Central Pennsylvania; Director, Ireland Institute <br> of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, <br> Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, <br> Pennsylvania Bar Institute; Director, Saint Vincent College; Director and <br> Chair, North Catholic High School, Inc.; Director and Vice Chair, Our <br> Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint <br> Francis University.<br>| $349.36 | $330000  |

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| | | | |
|:---|:---|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust**<br> **Date Service Began**<br>| &nbsp;&nbsp; **Principal Occupation(s) and Other Directorships Held for** <br> **Past Five Years, Previous Position(s) and Qualifications**<br>| **Aggregate**<br> **Compensation**<br> **From Fund**<br> **(past fiscal year)**<br>| **Total Compensation**<br> **From Fund and**<br> **Federated Hermes Complex**<br> **(past calendar year)**<br>|
| **Thomas M. O'Neill**<br> Birth Date: June 14, 1951<br> Trustee<br> Indefinite Term<br> Began serving: August 2006<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee of the Federated Hermes <br> Complex; Sole Proprietor, Navigator Management Company (investment <br> and strategic consulting).<br> **Other Directorships Held:** None.<br> **Qualifications:** Mr. O'Neill has served in several business, mutual fund and <br> financial management roles and directorship positions throughout his <br> career. Mr. O'Neill serves as Director, Medicines for Humanity. Mr. O'Neill <br> previously served as Chief Executive Officer and President, Managing <br> Director and Chief Investment Officer, Fleet Investment Advisors; President <br> and Chief Executive Officer, Aeltus Investment Management, Inc.; General <br> Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment <br> Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending <br> Officer, Fleet Bank; Director and Consultant, EZE Castle Software <br> (investment order management software); Director, Midway Pacific <br> (lumber); and Director, The Golisano Children's Museum of Naples, Florida<br>| $349.36 | $330000 |
| **Madelyn A. Reilly**<br> Birth Date: February 2, 1956<br> Trustee<br> Indefinite Term<br> Began serving: November 2020<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee of the Federated Hermes <br> Complex; formerly, Senior Vice President for Legal Affairs, General Counsel <br> and Secretary of Board of Directors, Duquesne 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 as <br> Senior Vice President for Legal Affairs, General Counsel and Secretary of <br> Board of Directors and Director of Risk Management and Associate General <br> Counsel, Duquesne University. Prior to her work at Duquesne University, <br> Ms. Reilly served as Assistant General Counsel of Compliance and <br> Enterprise Risk as well as Senior Counsel of Environment, Health and <br> Safety, PPG Industries. Ms. Reilly currently serves as a member of the Board <br> of Directors of UPMC Mercy Hospital.<br>| $317.60 | $300000 |
| **P. Jerome Richey**<br> Birth Date: February 23, 1949<br> Trustee<br> Indefinite Term<br> Began serving: October 2013<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee of the Federated Hermes <br> Complex; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, <br> University of Pittsburgh and Executive Vice President and Chief Legal <br> Officer, CONSOL Energy Inc. (split into two separate publicly traded <br> companies known as CONSOL Energy Inc. and CNX 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 and <br> Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as <br> Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and <br> Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey <br> previously served as Chief Legal Officer and Executive Vice President, <br> CONSOL Energy Inc. and CNX Gas Company; and Board Member, Ethics <br> Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm).<br>| $349.36 | $330000 |
| **John S. Walsh**<br> Birth Date: November 28, 1957<br> Trustee<br> Indefinite Term<br> Began serving: November 2005<br>| &nbsp;&nbsp; **Principal Occupations:** Director or Trustee of the Federated Hermes <br> Complex; President and Director, Heat Wagon, Inc. (manufacturer of <br> construction temporary heaters); President and Director, Manufacturers <br> Products, Inc. (distributor of portable construction heaters); President, <br> Portable Heater Parts, a division of Manufacturers Products, Inc.<br> **Other Directorships Held:** None.<br> **Qualifications:** Mr. Walsh has served in several business management roles <br> and directorship positions throughout his career. Mr. Walsh previously <br> served as Vice President, Walsh & Kelly, Inc. (paving contractors).<br>| $317.60 | $300000 |

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**OFFICERS\*** 

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| | |
|:---|:---|
| **Name**<br> **Birth Date**<br> **Positions Held with Trust** <br> **Date Service Began**<br>| **Principal Occupation(s) and Previous Position(s)** |
| **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 Federated Hermes Complex; Senior Vice President, <br> Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, <br> Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation.<br> **Previous Positions:** Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors <br> Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, <br> Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services <br> Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., <br> Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd. and Federated MDTA, <br> LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution <br> Services, Inc.<br>|
| **Peter J. Germain**<br> Birth Date: September 3, 1959<br> CHIEF LEGAL OFFICER, <br> SECRETARY and EXECUTIVE<br> VICE PRESIDENT<br> Officer since: October 2005<br>| &nbsp;&nbsp; **Principal Occupations:** Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes <br> Complex. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee <br> and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative <br> Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities <br> Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; <br> and Secretary, Retirement Plan Service Company of 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, Managing Director of Mutual Fund Services, Federated Hermes, <br> Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc.<br>|
| **Stephen Van Meter**<br> Birth Date: June 5, 1975<br> CHIEF COMPLIANCE OFFICER <br> AND SENIOR VICE PRESIDENT<br> Officer since: July 2015<br>| &nbsp;&nbsp; **Principal Occupations:** Senior Vice President and Chief Compliance Officer of the Federated Hermes Complex; Vice President <br> and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. <br> Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66.<br> **Previous Positions:** Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to <br> joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions <br> of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement.<br>|
| **Robert J. Ostrowski**<br> Birth Date: April 26, 1963<br> Chief Investment Officer<br> Officer since: September 2006<br>| &nbsp;&nbsp; **Principal Occupations:** Robert J. Ostrowski joined Federated Hermes, Inc. in 1987 as an Investment Analyst and became a <br> Portfolio Manager in 1990. He was named Chief Investment Officer of Federated Hermes, Inc. taxable fixed-income products in <br> 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund's Adviser in <br> 2009 and served as a Senior Vice President of the Fund's Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered <br> Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University.<br>|
| **Stephen F. Auth**<br> Birth Date: 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: February 2015<br>| &nbsp;&nbsp; **Principal Occupations:** Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Complex; <br> Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated <br> Equity Management Company of Pennsylvania.<br> **Previous Positions:** Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. <br> (investment advisory subsidiary of Federated Hermes); Senior Vice President, Global Portfolio Management Services Division; <br> Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and <br> Portfolio Manager, Prudential Investments.<br>|

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\*

*Officers do not receive any compensation from the Fund.*

*In addition, the Fund has appointed an Anti-Money Laundering Compliance Officer.*

**DIRECTOR/TRUSTEE EMERITUS PROGRAM** 

The Board has created a position of Director/Trustee Emeritus, whereby an incumbent Director/Trustee who has attained the age of 75 and completed a minimum of five years of service as a director/trustee, may, in the sole discretion of the Committee of Independent Directors/Trustees ("Committee"), be recommended to the full Board of Directors/Trustees of the Fund to serve as Director/Trustee Emeritus.

A Director/Trustee Emeritus that has been approved as such receives an annual fee in an amount equal to a percent of the annual base compensation paid to a Director/Trustee. In the case of a Director/Trustee Emeritus who had previously served at least five years but less than 10 years as a Director/Trustee, the percent will be 10%. In the case of a Director/Trustee Emeritus who had previously served at least 10 years as a Director/Trustee, the percent will be 20%. The Director/Trustee Emeritus will be reimbursed for any expenses incurred in connection with their service, including expenses of travel and lodging incurred in

**25**

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attendance at Board meetings. Director/Trustee Emeritus will continue to receive relevant materials concerning the Funds, will be expected to attend at least one regularly scheduled quarterly meeting of the Board of Directors/Trustees each year and will be available to consult with the Committees or its representatives at reasonable times as requested by the Chairman; however, a Director/Trustee Emeritus does not have any voting rights at Board meetings and is not subject to election by shareholders of the Funds.

The Director/Trustee Emeritus will be permitted to serve in such capacity at the pleasure of the Committee, but the annual fee will cease to be paid at the end of the calendar year during which he or she has attained the age of 80 years, thereafter the position will be honorary.

The following table shows the fees paid to each Director/Trustee Emeritus for the Fund's most recently ended fiscal year and the portion of that fee paid by the Fund or Corporation/Trust.<sup>1</sup>

**EMERITUS Trustees and Compensation** 

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| | | |
|:---|:---|:---|
| **Director/Trustee Emeritus** | **Compensation**<br> **From Trust**<br> **(past fiscal year)**<br>| **Total**<br> **Compensation**<br> **Paid to**<br> **Director/Trustee**<br> **Emeritus**<sup>1</sup> <br>|
| **Peter E. Madden** | $30.58 | $60000.00 |
| **Charles F. Mansfield, Jr.** | $30.58 | $60000.00 |

---

*The fees paid to a Director/Trustee are allocated among the funds that were in existence at the time the Director/Trustee elected Emeritus status, based on each fund's net assets at that time.*

**BOARD LEADERSHIP STRUCTURE** 

As required under the terms of certain regulatory settlements, the Chairman of the Board is not an interested person of the Fund and neither the Chairman, nor any firm with which the Chairman is affiliated, has a prior relationship with Federated Hermes or its affiliates or (other than his position as a Trustee) with the Fund.

**Committees of the Board** 

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| | | | |
|:---|:---|:---|:---|
| **Board**<br> **Committee**<br>| &nbsp;&nbsp;&nbsp; **Committee**<br> **Members**<br>| **Committee Functions** | &nbsp;&nbsp;&nbsp; **Meetings Held**<br> **During Last**<br> **Fiscal Year**<br>|
| **Executive** | &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;J. Christopher Donahue<br> John T. Collins<br> &nbsp;&nbsp;&nbsp;&nbsp;G. Thomas Hough<br>| &nbsp;&nbsp;&nbsp; In between meetings of the full Board, the Executive Committee generally may <br> exercise all the powers of the full Board in the management and direction of the <br> business and conduct of the affairs of the Trust in such manner as the Executive <br> Committee shall deem to be in the best interests of the Trust. However, the <br> Executive Committee cannot elect or remove Board members, increase or decrease <br> the number of Trustees, elect or remove any Officer, declare dividends, issue shares <br> or recommend to shareholders any action requiring shareholder approval.<br>| One |
| **Audit** | &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;G. Thomas Hough<br> Maureen Lally-Green<br> Thomas M. O'Neill<br> &nbsp;&nbsp;&nbsp;&nbsp;P. Jerome Richey<br>| &nbsp;&nbsp;&nbsp; The purposes of the Audit Committee are to oversee the accounting and financial <br> reporting process of the Fund, the Fund's internal control over financial reporting <br> and the quality, integrity and independent audit of the Fund's financial statements. <br> The Committee also oversees or assists the Board with the oversight of compliance <br> with legal requirements relating to those matters, approves the engagement and <br> reviews the qualifications, independence and performance of the Fund's <br> independent registered public accounting firm, acts as a liaison between the <br> independent registered public accounting firm and the Board and reviews the Fund's <br> internal audit function.<br>| Seven  |

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**26**

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| | | | |
|:---|:---|:---|:---|
| **Board**<br> **Committee**<br>| &nbsp;&nbsp;&nbsp; **Committee**<br> **Members**<br>| **Committee Functions** | &nbsp;&nbsp;&nbsp; **Meetings Held**<br> **During Last**<br> **Fiscal Year**<br>|
| **Nominating** | &nbsp;&nbsp;&nbsp; John T. Collins<br> &nbsp;&nbsp;&nbsp;&nbsp;G. Thomas Hough <br> Maureen Lally-Green<br> Thomas M. O'Neill<br> Madelyn A. Reilly<br> &nbsp;&nbsp;&nbsp;&nbsp;P. Jerome Richey<br> John S. Walsh<br>| &nbsp;&nbsp;&nbsp; The Nominating Committee, whose members consist of all Independent Trustees, <br> selects and nominates persons for election to the Fund's Board when vacancies <br> occur. The Committee will consider candidates recommended by shareholders, <br> Independent Trustees, officers or employees of any of the Fund's agents or service <br> providers and counsel to the Fund. Any shareholder who desires to have an <br> individual considered for nomination by the Committee must submit a <br> recommendation in writing to the Secretary of the Fund, at the Fund's address <br> appearing on the back cover of this SAI. The recommendation should include the <br> name and address of both the shareholder and the candidate and detailed <br> information concerning the candidate's qualifications and experience. In identifying <br> and evaluating candidates for consideration, the Committee shall consider such <br> factors as it deems appropriate. Those factors will ordinarily include: integrity, <br> intelligence, collegiality, judgment, diversity, skill, business and other experience, <br> qualification as an "Independent Trustee," the existence of material relationships <br> which may create the appearance of a lack of independence, financial or accounting <br> knowledge and experience and dedication and willingness to devote the time and <br> attention necessary to fulfill Board responsibilities.<br>| One |

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**BOARD'S ROLE IN RISK OVERSIGHT** 

The Board's role in overseeing the Fund's general risks includes receiving performance reports for the Fund and risk management reports from Federated Hermes' Chief Risk Officer at each regular Board meeting. The Chief Risk Officer is responsible for enterprise risk management at Federated Hermes, which includes risk management committees for investment management and for investor services. The Board also receives regular reports from the Fund's Chief Compliance Officer regarding significant compliance risks.

On behalf of the Board, the Audit Committee plays a key role overseeing the Fund's financial reporting and valuation risks. The Audit Committee meets regularly with the Fund's Principal Financial Officer and outside auditors, as well as with Federated Hermes' Chief Audit Executive to discuss financial reporting and audit issues, including risks relating to financial controls.

**Board Ownership Of Shares In The Fund And In The Federated Hermes Family Of Investment Companies As Of December 31, 2022** 

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| | | |
|:---|:---|:---|
| **Interested Board**<br> **Member Name**<br>| &nbsp;&nbsp; **Dollar Range of**<br> **Shares Owned in**<br> **Federated Hermes** <br> **Mortgage Strategy Portfolio**<br>| &nbsp;&nbsp; **Aggregate**<br> **Dollar Range of**<br> **Shares Owned in**<br> **Federated Hermes Family of**<br> **Investment Companies\***<br>|
| J. Christopher Donahue |  | Over $100,000 |
| John B. Fisher |  | Over $100,000 |
| **Independent Board**<br> **Member Name**<br>|  |  |
| John T. Collins |  | Over $100,000 |
| G. Thomas Hough |  | Over $100,000 |
| Maureen Lally-Green |  | Over $100,000 |
| Thomas M. O'Neill |  | Over $100,000 |
| Madelyn A. Reilly |  | Over $100,000 |
| P. Jerome Richey |  | Over $100,000 |
| John S. Walsh |  | Over $100,000 |

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\* For the calendar year ended December 31, 2021, each Trustee listed owned in the aggregate over $100,000 in the Federated Hermes Family of Investment Companies.

**27**

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**INVESTMENT ADVISER for the fund and the underlying fund** 

Federated Investment Management Company is the Adviser to both the Fund and the Underlying Fund. Federated Investment Management Company is a wholly owned subsidiary of Federated.

The Adviser conducts investment research and makes investment decisions for the Fund. The Adviser has entered into an agreement with the Fund to reimburse the Fund for certain administrative expenses (other than extraordinary expenses) such that it is anticipated that the net expenses of the Fund will be 0.00% for the fiscal year ending December 31, 2011. Shareholders must approve any change to the contractual waiver or reimbursement.

The Underlying Fund is managed independently of the Fund. The Underlying Fund's Adviser does not charge a fee for its services to the Underlying Fund.

The Adviser shall not be liable to the Trust or any Fund shareholder for any losses that may be sustained in the purchase, holding, or sale of any security or for anything done or omitted by it, except acts or omissions involving willful misfeasance, bad faith, gross negligence, or reckless disregard of the duties imposed upon it by its contract with the Trust.

In December 2017, Federated Investors, Inc., now Federated Hermes, became a signatory to the Principles for Responsible Investment (PRI). The PRI is an investor initiative in partnership with the United Nations Environment Programme Finance Initiative and the United Nations Global Compact. Commitments made as a signatory to the PRI are not legally binding, but are voluntary and aspirational. They include efforts, where consistent with our fiduciary responsibilities, to incorporate environmental, social and corporate governance (ESG) issues into investment analysis and investment decision making, to be active owners and incorporate ESG issues into our ownership policies and practices, to seek appropriate disclosure on ESG issues by the entities in which we invest, to promote acceptance and implementation of the PRI within the investment industry, to enhance our effectiveness in implementing the PRI, and to report on our activities and progress towards implementing the PRI. Being a signatory to the PRI does not obligate Federated Hermes to take, or not take, any particular action as it relates to investment decisions or other activities.

In July 2018, Federated Investors, Inc., now Federated Hermes, acquired a majority interest in Federated Hermes Limited (FHL) (formerly, Hermes Fund Managers Limited), a pioneer of integrated ESG investing. Federated Hermes now owns 100% of FHL. FHL's experience with ESG issues contributes to Federated Hermes' understanding of material risks and opportunities these issues may present.

EOS at Federated Hermes, which was established as Hermes Equity Ownership Services Limited (EOS) in 2004 as an affiliate of FHL and Hermes Investment Management Limited, is a 50+ member engagement and stewardship team that conducts long-term, objectives-driven dialogue with board and senior executive level representatives of approximately 1,000 unique issuers annually. It seeks to address the most material ESG risks and opportunities through constructive and continuous discussions with the goal of improving long-term results for investors. Engagers' deep understanding across sectors, themes and regional markets, along with language and cultural expertise, allows EOS to provide insights to companies on the merits of addressing ESG risks and the positive benefits of capturing opportunities. Federated Hermes investment management teams have access to the insights gained from understanding a company's approach to these long-term strategic matters as an additional input to improve portfolio risk/return characteristics.

**Portfolio Manager Information** 

The following information about the Fund's Portfolio Managers is provided as of the end of the Fund's most recently completed fiscal year unless otherwise indicated.

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**Todd Abraham, Portfolio Manager** 

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| | |
|:---|:---|
| **Types of Accounts Managed**<br> **by Todd Abraham**<br>| &nbsp;&nbsp;&nbsp; **Total Number of Additional Accounts**<br> **Managed/Total Assets\***<br>|
| Registered Investment Companies | 11/$4.4 billion |
| Other Pooled Investment Vehicles | 0/$0 |
| Other Accounts | 1/$49.2 million |

---

\*

*None of the Accounts has an advisory fee that is based on the performance of the account.*

*Dollar value range of shares owned in the Fund: None.* 

Todd Abraham is paid a fixed base salary and a variable annual incentive. Base salary is determined within a market competitive, position-specific salary range, based on the portfolio manager's experience and performance. The annual incentive amount is determined based primarily on Investment Product Performance (IPP) and may also include a discretionary component based on a variety of factors deemed relevant, such as financial measures and performance and may be paid entirely in cash, or in a combination of cash and restricted stock of Federated Hermes, Inc. ("Federated Hermes"). The total combined annual incentive opportunity is intended to be competitive in the market for this portfolio manager role.

The Fund will gain exposure to mortgage-backed securities by investing in another fund (the "Mortgage Core Fund"). IPP is measured on a rolling one, three and five calendar year pre-tax gross total return basis versus the Mortgage Core Fund's benchmark (i.e., Bloomberg U.S. Mortgage Backed Securities Index). Mr. Abraham manages the Mortgage Core Fund according to its specific investment program. Thus, although Mr. Abraham is not responsible for making investment decisions directly on behalf of the Fund, the mortgage-backed, fixed-income portion of the Fund's portfolio may be subject to his management of the Mortgage Core Fund. Performance periods are adjusted if a portfolio manager has been managing an account for less than five years; accounts with less than one year of performance history under a portfolio manager may be excluded.

As noted above, Mr. Abraham is also the portfolio manager for other accounts in addition to the Mortgage Core Fund. Such other accounts may have different benchmarks and performance measures. The allocation or weighting given to the performance of the Mortgage Core Fund or other accounts or activities for which Mr. Abraham is responsible when his compensation is calculated may be equal or can vary.

In addition, Mr. Abraham has oversight responsibility for other portfolios that he does not personally manage and serves on one or more Investment Teams that establish guidelines on various performance drivers (e.g., currency, duration, sector, volatility and/or yield curve) for taxable, fixed-income accounts. A portion of the IPP score is based on Federated Hermes' senior management's assessment of team contributions.

For purposes of calculating the annual incentive amount, each account managed by the portfolio manager currently is categorized into one of two IPP groups (which may be adjusted periodically). Within each performance measurement period and IPP group, IPP currently is calculated on the basis of an assigned weighting to each account managed or activity engaged in by the portfolio manager and included in the IPP groups. At the account level, the weighting assigned to the Mortgage Core Fund is greater than or equal to the weighting assigned to other accounts or activities used to determine IPP (but can be adjusted periodically). A portion of the bonus tied to the IPP score may be adjusted based on management's assessment of overall contributions to account performance and any other factors as deemed relevant.

Any individual allocations from the discretionary pool may be determined, by executive management on a discretionary basis using various factors, such as, for example, on a product, strategy or asset class basis, and considering overall contributions and any other factors deemed relevant (and may be adjusted periodically).

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**Liam O'Connell, Portfolio Manager** 

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| | |
|:---|:---|
| **Types of Accounts Managed**<br> **by Liam O'Connell**<br>| &nbsp;&nbsp;&nbsp; **Total Number of Additional Accounts**<br> **Managed/Total Assets\***<br>|
| Registered Investment Companies | 9/$4.9 billion |
| Other Pooled Investment Vehicles | 0/$0 |
| Other Accounts | 1/$49.2 million |

---

\*

*None of the Accounts has an advisory fee that is based on the performance of the account.*

*Dollar value range of shares owned in the Fund: None.* 

Liam O'Connell is paid a fixed base salary and a variable annual incentive. Base salary is determined within a market competitive, position-specific salary range, based on the portfolio manager's experience and performance. The annual incentive amount is determined based primarily on Investment Product Performance (IPP) and may also include a discretionary component based on a variety of factors deemed relevant, such as financial measures and performance and may be paid entirely in cash, or in a combination of cash and restricted stock of Federated Hermes, Inc. ("Federated Hermes"). The total combined annual incentive opportunity is intended to be competitive in the market for this portfolio manager role.

The Fund will gain exposure to mortgage-backed securities by investing in another fund (the "Mortgage Core Fund"). IPP is measured on a rolling one, three and five calendar year pre-tax gross total return basis versus the Mortgage Core Fund's benchmark (i.e., Bloomberg U.S. Mortgage Backed Securities Index). Mr. O'Connell manages the Mortgage Core Fund according to its specific investment program. Thus, although Mr. O'Connell is not responsible for making investment decisions directly on behalf of the Fund, the mortgage-backed, fixed-income portion of the Fund's portfolio may be subject to his management of the Mortgage Core Fund. Performance periods are adjusted if a portfolio manager has been managing an account for less than five years; accounts with less than one year of performance history under a portfolio manager may be excluded.

As noted above, Mr. O'Connell is also the portfolio manager for other accounts in addition to the Mortgage Core Fund. Such other accounts may have different benchmarks and performance measures. The allocation or weighting given to the performance of the Mortgage Core Fund or other accounts or activities for which Mr. O'Connell is responsible when his compensation is calculated may be equal or can vary.

In addition, Mr. O'Connell serves on one or more Investment Teams that establish guidelines on various performance drivers (e.g., currency, duration, sector, volatility and/or yield curve) for taxable, fixed-income accounts. A portion of the IPP score is based on Federated Hermes' senior management's assessment of team contributions.

For purposes of calculating the annual incentive amount, each account managed by the portfolio manager currently is categorized into one of two IPP groups (which may be adjusted periodically). Within each performance measurement period and IPP group, IPP currently is calculated on the basis of an assigned weighting to each account managed or activity engaged in by the portfolio manager and included in the IPP groups. At the account level, the weighting assigned to the Mortgage Core Fund is lesser than or equal to the weighting assigned to other accounts or activities used to determine IPP (but can be adjusted periodically). Additionally, a portion of Mr. O'Connell's IPP score is based on the performance of the accounts for which he provides research and analytic support. A portion of the bonus tied to the IPP score may be adjusted based on management's assessment of overall contributions to account performance and any other factors as deemed relevant.

Any individual allocations from the discretionary pool may be determined, by executive management on a discretionary basis using various factors, such as, for example, on a product, strategy or asset class basis, and considering overall contributions and any other factors deemed relevant (and may be adjusted periodically).

In addition, Mr. O'Connell was awarded a grant of restricted Federated Hermes stock. Awards of restricted stock are discretionary and are made in variable amounts based on the subjective judgment of Federated Hermes' senior management.

**Services Agreement** 

Federated Advisory Services Company, an affiliate of the Adviser, provides certain support services to the Adviser. The fee for these services is paid by the Adviser and not by the Fund.

**Other Related Services** 

Affiliates of the Adviser may, from time to time, provide certain electronic equipment and software to institutional customers in order to facilitate the purchase of Fund Shares offered by the Distributor.

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**Code Of Ethics Restrictions On Personal Trading** 

As required by Rule 17j-1 of the Investment Company Act of 1940 and Rule 204A-1 under the Investment Advisers Act (as applicable), the Fund, its Adviser and its Distributor have adopted codes of ethics. These codes govern securities trading activities of investment personnel, Fund Trustees and certain other employees. Although they do permit these people to trade in securities, including those that the Fund could buy, as well as Shares of the Fund, they also contain significant safeguards designed to protect the Fund and its shareholders from abuses in this area, such as requirements to obtain prior approval for, and to report, particular transactions.

**Voting Proxies On Fund Portfolio Securities** 

The Board has delegated to the Adviser authority to vote proxies on the securities held in the Fund's portfolio. The Board has also approved the Adviser's policies and procedures for voting the proxies, which are described below.

**Proxy Voting Policies** 

As an investment adviser with a fiduciary duty to the Fund and its shareholders, the Adviser's general policy is to cast proxy votes in favor of management proposals and shareholder proposals that the Adviser anticipates will enhance the long-term value of the securities being voted in a manner that is consistent with the investment objectives of the Fund. Generally, this will mean voting for proposals that the Adviser believes will improve the management of a company, increase the rights or preferences of the voted securities, or increase the chance that a premium offer would be made for the company or for the voted securities. This approach to voting proxy proposals will be referred to hereafter as the "General Policy."

The Adviser generally votes consistently on the same matter when securities of an issuer are held by multiple client portfolios. However, the Adviser may vote differently if a client's investment objectives differ from those of other clients or if a client explicitly instructs the Adviser to vote differently.

The following examples illustrate how the General Policy may apply to the most common management proposals and shareholder proposals. However, whether the Adviser supports or opposes a proposal will always depend on a thorough understanding of the Fund's investment objectives and the specific circumstances described in the proxy statement and other available information.

On matters related to the board of directors, generally, the Adviser will vote to elect nominees to the board in uncontested elections except in certain circumstances, such as where the director: (1) had not attended at least 75% of the board meetings during the previous year; (2) serves as the company's chief financial officer, unless the company is headquartered in the UK where this is market practice; (3) has become overboarded (more than five boards for retired executives and more than two boards for CEOs); (4) is the chair of the nominating or governance committee when the roles of chairman of the board and CEO are combined and there is no lead independent director; (5) served on the compensation committee during a period in which compensation appears excessive relative to performance and peers; or (6) served on a board that did not implement a shareholder proposal that the Adviser supported and received more than 50% shareholder support the previous year. In addition, the Adviser will generally vote in favor of: (7) a full slate of directors, where the directors are elected as a group and not individually, unless more than half of the nominees are not independent; (8) shareholder proposals to declassify the board of directors; (9) shareholder proposals to require a majority voting standard in the election of directors; (10) shareholder proposals to separate the roles of chairman of the board and CEO; (11) a proposal to require a company's audit committee to be comprised entirely of independent directors; and (12) shareholder proposals to eliminate supermajority voting requirements in company bylaws.

On other matters of corporate governance, generally, the Adviser will vote: (1) in favor of proposals to grant shareholders the right to call a special meeting if owners of at least 15% of the outstanding stock agree; (2) against proposals to allow shareholders to act by written consent; (3) on a case-by-case basis for proposals to adopt or amend shareholder rights plans (also known as "poison pills"); (4) in favor of shareholder proposals to eliminate supermajority requirements in company bylaws; and (5) in favor of shareholder proposals calling for "Proxy Access," that is, a bylaw change allowing shareholders owning at least 3% of the outstanding common stock for at least three years to nominate candidates for election to the board of directors.

Generally, the Adviser will vote every shareholder proposal of an environmental or social nature on a case-by-case basis. The quality of these shareholder proposals varies widely across markets. Similarly, company disclosures of their business practices related to environmental and social risks are not always adequate for investors to make risk assessments. Thus, the Adviser places great importance on company-specific analyses to determine how to vote. Above all, the Adviser will vote in a manner that would enhance the long-term value of the investment within the framework of the client's investment objectives.

The Adviser's general approach to analyzing these proposals calls for considering the literal meaning of the written proposal, the financial materiality of the proposal's objective and the practices followed by industry peers. This analysis utilizes research reports from the Adviser's proxy advisors, company filings, as well as reports published by the company and other outside organizations.

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On matters of capital structure, generally, the Adviser will vote proxies for U.S. issuers on a case-by-case basis for proposals to authorize the issuance of new shares if not connected to an M&A transaction and the potential dilution is more than 10%, against proposals to create multiple-class voting structures where one class has superior voting rights to the other classes, in favor of proposals to authorize reverse stock splits unless the amount of authorized shares is not also reduced proportionately. Generally, the Adviser will vote proxies for non-U.S. issuers in favor of proposals to authorize issuance of shares with and without pre-emptive rights unless the size of the authorities would threaten to unreasonably dilute existing shareholders.

Votes on executive compensation come in many forms, including advisory votes on U.S. executive compensation plans ("Say On Pay"), advisory and binding votes on the design or implementation of non-U.S. executive remuneration plans and votes to approve new equity plans or amendments to existing plans. Generally, the Adviser will support compensation arrangements that are aligned with the client's long-term investment objectives. With respect to Say On Pay proposals, the Adviser will generally vote in favor unless the compensation plan has failed to align executive compensation with corporate performance, or the design of the plan is likely to lead to misalignment in the future. The Adviser supports the principle of an annual shareholder vote on executive pay and will generally vote accordingly on proposals which set the frequency of the Say On Pay vote.

In some markets, especially Europe, shareholders are provided a vote on the remuneration policy, which sets out the structural elements of a company's executive remuneration plan on a forward-looking basis. The Adviser will generally support these proposals unless the design of the remuneration policy fails to appropriately link executive compensation with corporate performance, total compensation appears excessive relative to the company's industry peer group, with local market dynamics also taken into account; or there is insufficient disclosure to enable an informed judgment, particularly as it relates to the disclosure of the maximum amounts of compensation that may be awarded.

The Adviser will generally vote in favor of equity plan proposals unless they result in unreasonable dilution to existing shareholders, permit replacement of "underwater" options with new options on more favorable terms for the recipient, or omit the criteria for determining the granting or vesting of awards.

On matters relating to corporate transactions, the Adviser will generally vote in favor of mergers, acquisitions and sales of assets if the Adviser's analysis of the proposed business strategy and the transaction price would have a positive impact on the total return for shareholders.

If a shareholders meeting is contested, that is, shareholders are presented with a set of director candidates nominated by company management and a set of director candidates nominated by a dissident shareholder, the Adviser will study the proposed business strategies of both groups and vote in a way that maximizes expected total return for the Fund.

In addition, the Adviser will not vote any proxy if it determines that the consequences or costs of voting outweigh the potential benefit of voting. For example, if a foreign market requires shareholders voting proxies to retain the voted shares until the meeting date (thereby rendering the shares "illiquid" for some period of time), the Adviser will not vote proxies for such shares. In addition, the Adviser is not obligated to incur any expense to send a representative to a shareholder meeting or to translate proxy materials into English.

To the extent that the Adviser is permitted to loan securities, the Adviser does not have the right to vote on securities while they are on loan. However, the Adviser will take all reasonable steps to recall shares prior to the record date when the meeting raises issues that the Adviser believes materially affect shareholder value, provided that the Adviser considers that the benefits of voting on the securities are greater than the associated costs, including the opportunity cost of the lost revenue that would otherwise be generated by the loan. However, there can be no assurance that the Adviser will have sufficient notice of such matters to be able to terminate the loan in time to vote thereon.

The Adviser will take into account feedback from issuers on the voting recommendations of the Adviser's proxy advisory firm if the feedback is provided at least five days before the voting cut-off date. In certain circumstances, primarily those where the Adviser's voting policy is absolute and without exception, issuer feedback will not be part of the voting decision. For example, it is the Adviser's policy to always support a shareholder proposal to separate the roles of chairman of the board and CEO. Thus, any comments from the issuer opposing this proposal would not be considered.

If proxies are not delivered in a timely or otherwise appropriate basis, the Adviser may not be able to vote a particular proxy.

For an Adviser that employs a quantitative investment strategy for certain funds or accounts that does not make use of qualitative research ("Non-Qualitative Accounts"), the Adviser may not have the kind of research to make decisions about how to vote proxies for them. Therefore, the Adviser will vote the proxies of these Non-Qualitative Accounts as follows: (a) in accordance with the Standard Voting Instructions (defined below); (b) if the Adviser is casting votes for the same proxy on behalf of a regular qualitative account and a Non-Qualitative Account, the Non-Qualitative Account would vote in the same manner as the regular qualitative account; (c) if neither of the first two conditions apply, as the proxy advisory firm is recommending; and (d) if none of the previous conditions apply, as recommended by the Proxy Voting Committee.

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**Proxy Voting Procedures** 

The Adviser has established a Proxy Voting Committee ("Proxy Committee"), to exercise all voting discretion granted to the Adviser by the Board in accordance with the proxy voting policies. To assist it in carrying out the day-to-day operations related to proxy voting, the Proxy Committee has created the Proxy Voting Management Group (PVMG). The day-to-day operations related to proxy voting are carried out by the Proxy Voting Operations Team (PVOT) and overseen by the PVMG. Besides voting the proxies, this work includes engaging with investee companies on corporate governance matters, managing the proxy advisory firm, soliciting voting recommendations from the Adviser's investment professionals, bringing voting recommendations to the Proxy Committee for approval, filing with regulatory agencies any required proxy voting reports, providing proxy voting reports to clients and investment companies as they are requested from time to time and keeping the Proxy Committee informed of any issues related to corporate governance and proxy voting.

The Adviser has compiled a list of specific voting instructions based on the General Policy (the "Standard Voting Instructions"). The Standard Voting Instructions and any modifications to them are approved by the Proxy Committee. The Standard Voting Instructions sometimes call for an investment professional to review the ballot question and provide a voting recommendation to the Proxy Committee (a "case-by-case vote"). The foregoing notwithstanding, the Proxy Committee always has the authority to determine a final voting decision.

The Adviser has hired a proxy advisory firm to perform various proxy voting related administrative services such as ballot reconciliation, vote processing and recordkeeping functions. The Proxy Committee has supplied the proxy advisory firm with the Standard Voting Instructions. The Proxy Committee retains the right to modify the Standard Voting Instructions at any time or to vote contrary to them at any time in order to cast proxy votes in a manner that the Proxy Committee believes is in accordance with the General Policy. The proxy advisory firm may vote any proxy as directed in the Standard Voting Instructions without further direction from the Proxy Committee. However, if the Standard Voting Instructions require case-by-case handling for a proposal, the PVOT will work with the investment professionals and the proxy advisory firm to develop a voting recommendation for the Proxy Committee and to communicate the Proxy Committee's final voting decision to the proxy advisory firm. Further, if the Standard Voting Instructions require the PVOT to analyze a ballot question and make the final voting decision, the PVOT will report such votes to the Proxy Committee on a quarterly basis for review.

**Conflicts of Interest** 

The Adviser has adopted procedures to address situations where a matter on which a proxy is sought may present a potential conflict between the interests of the Fund (and its shareholders) and those of the Adviser or Distributor. This may occur where a significant business relationship exists between the Adviser (or its affiliates) and a company involved with a proxy vote.

A company that is a proponent, opponent, or the subject of a proxy vote, and which to the knowledge of the Proxy Committee has this type of significant business relationship, is referred to below as an "Interested Company."

The Adviser has implemented the following procedures in order to avoid concerns that the conflicting interests of the Adviser or its affiliates have influenced proxy votes. Any employee of the Adviser or its affiliates who is contacted by an Interested Company regarding proxies to be voted by the Adviser must refer the Interested Company to a member of the Proxy Committee, and must inform the Interested Company that the Proxy Committee has exclusive authority to determine how the proxy will be voted. Any Proxy Committee member contacted by an Interested Company must report it to the full Proxy Committee and provide a written summary of the communication. This requirement includes engagement meetings with investee companies and does not include communications with proxy solicitation firms. Under no circumstances will the Proxy Committee or any member of the Proxy Committee make a commitment to an Interested Company regarding the voting of proxies or disclose to an Interested Company how the Proxy Committee has directed such proxies to be voted. If the Standard Voting Instructions already provide specific direction on the proposal in question, the Proxy Committee shall not alter or amend such directions. If the Standard Voting Instructions require the Proxy Committee to provide further direction, the Proxy Committee shall do so in accordance with the proxy voting policies, without regard for the interests of the Adviser with respect to the Interested Company. If the Proxy Committee provides any direction as to the voting of proxies relating to a proposal affecting an Interested Company, it must disclose annually to the Fund's Board information regarding: the significant business relationship; any material communication with the Interested Company; the matter(s) voted on; and how, and why, the Adviser voted as it did. In certain circumstances it may be appropriate for the Adviser to vote in the same proportion as all other shareholders, so as to not affect the outcome beyond helping to establish a quorum at the shareholders' meeting. This is referred to as "proportional voting." If the Fund owns shares of another Federated Hermes mutual fund, generally the Adviser will proportionally vote the client's proxies for that fund or seek direction from the Board or the client on how the proposal should be voted. If the Fund owns shares of an unaffiliated mutual fund, the Adviser may proportionally vote the Fund's proxies for that fund depending on the size of the position. If the Fund owns shares of an unaffiliated exchange-traded fund, the Adviser will proportionally vote the Fund's proxies for that fund.

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**Downstream Affiliates** 

If the Proxy Committee gives further direction, or seeks to vote contrary to the Standard Voting Instructions, for a proxy relating to a portfolio company in which the Fund owns more than 10% of the portfolio company's outstanding voting securities at the time of the vote ("Downstream Affiliate"), the Proxy Committee must first receive guidance from counsel to the Proxy Committee as to whether any relationship between the Adviser and the portfolio company, other than such ownership of the portfolio company's securities, gives rise to an actual conflict of interest. If counsel determines that an actual conflict exists, the Proxy Committee must address any such conflict with the executive committee of the board of directors or trustees of any investment company client prior to taking any action on the proxy at issue.

**Proxy Advisers' Conflicts of Interest** 

Proxy advisory firms may have significant business relationships with the subjects of their research and voting recommendations. For example, a proxy advisory firm board member also sits on the board of a public company for which the proxy advisory firm will write a research report. This and similar situations give rise to an actual or apparent conflict of interest.

In order to avoid concerns that the conflicting interests of the engaged proxy advisory firm have influenced proxy voting recommendations, the Adviser will take the following steps:

◾ A due diligence team made up of employees of the Adviser and/or its affiliates will meet with the proxy advisory firm on an annual basis and determine through a review of their policies and procedures and through inquiry that the proxy advisory firm has established a system of internal controls that provide reasonable assurance that their voting recommendations are not influenced by the business relationships they have with the subjects of their research.

◾ Whenever the standard voting guidelines call for voting a proposal in accordance with the proxy advisory firm recommendation and the proxy advisory firm has disclosed that they have a conflict of interest with respect to that issuer, the PVOT will take the following steps: (a) the PVOT will obtain a copy of the research report and recommendations published by another proxy advisory firm for that issuer; (b) the Director of Proxy Voting, or his designee, will review both the engaged proxy advisory firm research report and the research report of the other proxy advisory firm and determine what vote will be cast. The PVOT will report all proxies voted in this manner to the Proxy Committee on a quarterly basis. Alternatively, the PVOT may seek direction from the Committee on how the proposal shall be voted.

**Proxy Voting Report** 

A report on Form N-PX of how the Fund voted any 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 at FederatedInvestors.com/product-landing/managed-account-pools.do. Select a product name, then click "Documents" and click on "Proxy Voting Record Report." You may also obtain this information by calling 1-800-341-7400. Form N-PX filings are also available at the SEC's website at sec.gov.

**PORTFOLIO HOLDINGS INFORMATION** 

Information concerning the Fund's portfolio holdings is available at FederatedInvestors.com/product-landing/managed-account-pools.do. Select a product and then click on the "Characteristics" tab. You may also obtain this information by calling 1-800-341-7400. A complete listing of the Fund's portfolio holdings as of the end of each calendar quarter is posted on the website 30 days (or the next business day) after the end of the quarter and remains posted for six months thereafter.

Summary portfolio composition information as of the close of each month is posted on the website 15 days (or the next business day) after month-end and remains posted until replaced by the information for the succeeding month. The summary portfolio composition information may include identification of the Fund's top 10 holdings.

You may also access portfolio information as of the end of the Fund's fiscal quarters at FederatedInvestors.com/product-landing/managed-account-pools.do. Select a product and then click on the "Documents" tab. The Fund's Annual Shareholder Report and Semi-Annual Shareholder Report contain complete listings of the Fund's portfolio holdings as of the end of the Fund's second and fourth fiscal quarters. Fiscal quarter information is made available on the website within 70 days after the end of the fiscal quarter. This information is also available in reports filed with the SEC at the SEC's website at sec.gov.

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.

The disclosure policy of the Fund and the Adviser prohibits the disclosure of portfolio holdings information to any investor or intermediary before the same information is made available to other investors. Employees of the Adviser or its affiliates who have access to nonpublic information concerning the Fund's portfolio holdings are prohibited from trading securities on the basis of this information. Such persons must report all personal securities trades and obtain pre-clearance for all personal securities trades other than mutual fund shares.

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Firms that provide administrative, custody, financial, accounting, legal or other services to the Fund may receive nonpublic information about the Fund's portfolio holdings for purposes relating to their services. The Fund may also provide portfolio holdings information to publications that rate, rank or otherwise categorize investment companies and to commodities exchange clearing corporations in connection with qualifying the Fund's Shares for use as margin collateral. Traders or portfolio managers may provide "interest" lists to facilitate portfolio trading if the list reflects only that subset of the portfolio for which the trader or portfolio manager is seeking market interest. A list of service providers, publications and other third parties who may receive nonpublic portfolio holdings information appears in the Appendix to this SAI.

The furnishing of nonpublic portfolio holdings information to any third party (other than authorized governmental or regulatory personnel) requires the prior approval of the President of the Adviser and of the Chief Compliance Officer of the Fund. The President of the Adviser and the Chief Compliance Officer will approve the furnishing of nonpublic portfolio holdings information to a third party only if they consider the furnishing of such information to be in the best interests of the Fund and its shareholders. In that regard, and to address possible conflicts between the interests of Fund shareholders and those of the Adviser and its affiliates, the following procedures apply. No consideration may be received by the Fund, the Adviser, any affiliate of the Adviser or any of their employees in connection with the disclosure of portfolio holdings information. Before information is furnished, the third party must sign a written agreement that it will safeguard the confidentiality of the information, will use it only for the purposes for which it is furnished and will not use it in connection with the trading of any security. Persons approved to receive nonpublic portfolio holdings information will receive it as often as necessary for the purpose for which it is provided. Such information may be furnished as frequently as daily and often with no time lag between the date of the information and the date it is furnished. The Board receives and reviews annually a list of the persons who receive nonpublic portfolio holdings information and the purposes for which it is furnished.

**Brokerage Transactions And Investment Allocation** 

When selecting brokers and dealers to handle the purchase and sale of portfolio instruments, the Adviser looks for prompt execution of the order at a favorable price. Fixed-income securities are generally traded in an over-the-counter market on a net basis (i.e., without commission) through dealers acting as principal or in transactions directly with the issuer. Dealers derive an undisclosed amount of compensation by offering securities at a higher price than they bid for them. Some fixed-income securities may have only one primary market maker. The Adviser seeks to use dealers it believes to be actively and effectively trading the security being purchased or sold, but may not always obtain the lowest purchase price or highest sale price with respect to a security. The Adviser makes decisions on portfolio transactions and selects brokers and dealers subject to review by the Fund's Board.

Investment decisions for the Fund are made independently from those of other accounts managed by the Adviser and accounts managed by affiliates of the Adviser. When the Fund and one or more of those accounts invests in, or disposes of, the same security, available investments or opportunities for sales will be allocated among the Fund and the account(s) in a manner believed by the Adviser to be equitable. While the coordination and ability to participate in volume transactions may benefit the Fund, it is possible that this procedure could adversely impact the price paid or received and/or the position obtained or disposed of by the Fund. Investment decisions, and trading, for certain separately managed or wrap-fee accounts, and other accounts, of the Adviser and/or certain investment adviser affiliates of the Adviser, are generally made, and conducted, independently from the Fund. It is possible that such independent trading activity could adversely impact the prices paid or received and/or positions obtained or disposed of by the Fund.

**Administrator** 

Federated Administrative Services (FAS), a subsidiary of Federated Hermes, provides administrative personnel and services, including certain legal, compliance and financial administrative services ("Administrative Services"), necessary for the operation of the Fund. FAS provides Administrative Services for a fee based upon the rates set forth below paid on the average daily net assets of the Fund. 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 with FAS. FAS is also entitled to reimbursement for certain out-of-pocket expenses incurred in providing Administrative Services to the Fund.

---

| | |
|:---|:---|
| **Administrative Services**<br> **Fee Rate**<br>| &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 |

---

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**Custodian** 

State Street Bank and Trust Company, Boston, Massachusetts, is custodian for the securities and cash of the Fund. Foreign instruments purchased by the Fund are held by foreign banks participating in a network coordinated by State Street Bank and Trust Company.

**Transfer Agent And Dividend Disbursing Agent** 

SS&C GIDS, Inc., the Fund's registered transfer agent, maintains all necessary shareholder records.

**Independent Registered Public Accounting Firm** 

The independent registered public accounting firm for the Fund, Ernst & Young LLP, conducts its audits in accordance with the standards of the Public Company Accounting Oversight Board (United States), which require it to plan and perform its audits to provide reasonable assurance about whether the Fund's financial statements and financial highlights are free of material misstatement.

**Securities Lending Activities** 

The services provided to the Fund by Citibank, N.A. as securities lending agent may include the following: selecting securities previously identified by the Fund as available for loan to be loaned; locating borrowers identified in the securities lending agency agreement; negotiating loan terms; monitoring daily the value of the loaned securities and collateral; requiring additional collateral as necessary; marking to market non-cash collateral; instructing the Fund's custodian with respect to the transfer of loaned securities; indemnifying the Fund in the event of a borrower default; and arranging for return of loaned securities to the Fund at loan termination.

The Fund did not participate in any securities lending activities during the Fund's most recently completed fiscal year.

---

| | |
|:---|:---|
| **Gross income from securities lending activities** | $00.00 |
| *Fees and/or compensation for securities lending activities and related services* |  |
| Fees paid to securities lending agent from a revenue split | $00.00 |
| Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in <br> the revenue split<br>|  |
| Administrative fees not included in revenue split |  |
| Indemnification fee not included in revenue split |  |
| Rebate (paid to borrower) | $00.00 |
| Other fees not included in revenue split (specify) |  |
| **Aggregate fees/compensation for securities lending activities** | $00.00 |
| **Net income from securities lending activities** | $00.00 |

---

[Financial Information](https://www.sec.gov/Archives/edgar/data/1340579/000162363223000317/form787.htm)

The Financial Statements for the Fund for the fiscal year ended December 31, 2022, are incorporated herein by reference to the Annual Report to Shareholders of Federated Hermes Mortgage Strategy Portfolio dated December 31, 2022.

Investment Ratings

**Standard & Poor's Rating Services (S&P) LONG-TERM Issue RATINGS** 

Issue credit ratings are based, in varying degrees, on S&P's analysis of the following considerations: the likelihood of payment-capacity and willingness of the obligor to meet its financial commitment on an obligation in accordance with the terms of the obligation; the nature of and provisions of the obligation; and the protection afforded by, and relative position of, the obligation in the event of bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors' rights.

**AAA**—An obligation rated "AAA" has the highest rating assigned by S&P. The obligor's capacity to meet its financial commitment on the obligation is extremely strong.

**AA**—An obligation rated "AA" differs from the highest rated obligations only to a small degree. The obligor's capacity to meet its financial commitment on the obligation is very strong.

**A**—An obligation rated "A" is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor's capacity to meet its financial commitment on the obligation is still strong.

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**BBB**—An obligation rated "BBB" exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

Obligations rated "BB," "B," "CCC," "CC" and "C" are regarded as having significant speculative characteristics. "BB" indicates the least degree of speculation and "C" the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions.

**BB**—An obligation rated "BB" is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.

**B**—An obligation rated "B" is more vulnerable to nonpayment than obligations rated "BB," but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation.

**CCC**—An obligation rated "CCC" is currently vulnerable to nonpayment, and is dependent upon favorable business, financial and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation.

**CC**—An obligation rated "CC" is currently highly vulnerable to nonpayment.

**C**—A "C" rating is assigned to obligations that are currently highly vulnerable to nonpayment, obligations that have payment arrearages allowed by the terms of the documents, or obligations of an issuer that is the subject of a bankruptcy petition or similar action which have not experienced a payment default. Among others, the "C" rating may be assigned to subordinated debt, preferred stock or other obligations on which cash payments have been suspended in accordance with the instrument's terms or when preferred stock is the subject of a distressed exchange offer, whereby some or all of the issue is either repurchased for an amount of cash or replaced by other instruments having a total value that is less than par.

**D**—An obligation rated "D" is in payment default. The "D" rating category is used when payments on an obligation are not made on the date due, unless S&P believes that such payments will be made within five business days, irrespective of any grace period. The "D" rating also will be used upon the filing of a bankruptcy petition or the taking of similar action if payments on an obligation are jeopardized. An obligation's rating is lowered to "D" upon completion of a distressed exchange offer, whereby some or all of the issue is either repurchased for an amount of cash or replaced by other instruments having a total value that is less than par.

The ratings from "AA" to "CCC" may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

**S&P Rating Outlook** 

An S&P rating outlook assesses the potential direction of a long-term credit rating over the intermediate term (typically six months to two years). In determining a rating outlook, consideration is given to any changes in the economic and/or fundamental business conditions.

**Positive**—Positive means that a rating may be raised.

**Negative**—Negative means that a rating may be lowered.

**Stable**—Stable means that a rating is not likely to change.

**Developing**—Developing means a rating may be raised or lowered.

**N.M.**—N.M. means not meaningful.

**S&P Short-Term Issue RATINGS** 

Short-term ratings are generally assigned to those obligations considered short-term in the relevant market. In the United States, for example, that means obligations with an original maturity of no more than 365 days–including commercial paper.

**A-1**—A short-term obligation rated "A-1" is rated in the highest category by S&P. The obligor's capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor's capacity to meet its financial commitment on these obligations is extremely strong.

**A-2**—A short-term obligation rated "A-2" is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor's capacity to meet its financial commitment on the obligation is satisfactory.

**A-3**—A short-term obligation rated "A-3" exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

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**B**—A short-term obligation rated "B" is regarded as vulnerable and has significant speculative characteristics. The obligor currently has the capacity to meet its financial commitments; however, it faces major ongoing uncertainties which could lead to the obligor's inadequate capacity to meet its financial commitments.

**C**—A short-term obligation rated "C" is currently vulnerable to nonpayment and is dependent upon favorable business, financial and economic conditions for the obligor to meet its financial commitment on the obligation.

**D**—A short-term obligation rated "D" is in payment default. The "D" rating category is used when payments on an obligation are not made on the date due, unless S&P believes that such payments will be made within any stated grace period. However, any stated grace period longer than five business days will be treated as five business days. The "D" rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized.

**MOODY'S Investor Services, Inc. (MOODY's) LONG-TERM RATINGS** 

Moody's long-term ratings are assigned to issuers or obligations with an original maturity of one year or more and reflect both on the likelihood of a default on contractually promised payments and the expected financial loss suffered in the event of default.

**Aaa**—Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk.

**Aa**—Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.

**A**—Obligations rated A are judged to be upper-medium-grade and are subject to low credit risk.

**Baa**—Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics.

**Ba**—Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.

**B**—Obligations rated B are considered speculative and are subject to high credit risk.

**Caa**—Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk.

**Ca**—Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest.

**C**—Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of principal or interest.

Moody's appends numerical modifiers 1, 2 and 3 to each generic rating classification from Aaa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.

**MOODY'S Short-Term RATINGS** 

Moody's short-term ratings are assigned to obligations with an original maturity of 13 months or less and reflect the likelihood of a default on contractually promised payments.

**P-1**—Issuers (or supporting institutions) rated P-1 have a superior ability to repay short-term debt obligations.

**P-2**—Issuers (or supporting institutions) rated P-2 have a strong ability to repay short-term debt obligations.

**P-3**—Issuers (or supporting institutions) rated P-3 have an acceptable ability to repay short-term obligations.

**NP**—Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating categories.

**FITCH, INC. (Fitch) LONG-TERM Debt RATINGs** 

Fitch long-term ratings report Fitch's opinion on an entity's relative vulnerability to default on financial obligations. The "threshold" default risk addressed by the rating is generally that of the financial obligations whose non-payment would best reflect the uncured failure of that entity. As such, Fitch long-term ratings also address relative vulnerability to bankruptcy, administrative receivership or similar concepts, although the agency recognizes that issuers may also make pre-emptive and therefore voluntary use of such mechanisms.

**AAA: Highest Credit Quality**—"AAA" ratings denote the lowest expectation of default risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.

**AA: Very High Credit Quality**—"AA" ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

**A: High Credit Quality**—"A" ratings denote expectations of low default risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings.

**BBB: Good Credit Quality**—"BBB" ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity.

**38**

------

**BB: Speculative**—"BB" ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial flexibility exists which supports the servicing of financial commitments.

**B: Highly Speculative**—"B" ratings indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.

**CCC: Substantial Credit Risk**—Default is a real possibility.

**CC: Very High Levels of Credit Risk**—Default of some kind appears probable.

**C: Exceptionally High Levels of Credit Risk**—Default is imminent or inevitable, or the issuer is in standstill. Conditions that are indicative of a "C" category rating for an issuer include: (a) the issuer has entered into a grace or cure period following non-payment of a material financial obligation; (b) the issuer has entered into a temporary negotiated waiver or standstill agreement following a payment default on a material financial obligation; or (c) Fitch otherwise believes a condition of "RD" or "D" to be imminent or inevitable, including through the formal announcement of a distressed debt exchange.

**RD: Restricted Default**—"RD" ratings indicate an issuer that in Fitch's opinion has experienced an uncured payment default on a bond, loan or other material financial obligation but which has not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, and which has not otherwise ceased operating. This would include: (a) the selective payment default on a specific class or currency of debt; (b) the uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a bank loan, capital markets security or other material financial obligation; (c) the extension of multiple waivers or forbearance periods upon a payment default on one or more material financial obligations, either in series or in parallel; or (d) execution of a distressed debt exchange on one or more material financial obligations.

**D: Default**—"D" ratings indicate an issuer that in Fitch's opinion has entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, or which has otherwise ceased business.

Default ratings are not assigned prospectively to entities or their obligations; within this context, non-payment on an instrument that contains a deferral feature or grace period will generally not be considered a default until after the expiration of the deferral or grace period, unless a default is otherwise driven by bankruptcy or other similar circumstance, or by a distressed debt exchange.

"Imminent" default typically refers to the occasion where a payment default has been intimated by the issuer, and is all but inevitable. This may, for example, be where an issuer has missed a scheduled payment, but (as is typical) has a grace period during which it may cure the payment default. Another alternative would be where an issuer has formally announced a distressed debt exchange, but the date of the exchange still lies several days or weeks in the immediate future.

In all cases, the assignment of a default rating reflects the agency's opinion as to the most appropriate rating category consistent with the rest of its universe of ratings, and may differ from the definition of default under the terms of an issuer's financial obligations or local commercial practice.

**FITCH SHORT-TERM DEBT RATINGs** 

A Fitch short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated entity or security stream and relates to the capacity to meet financial obligations in accordance with the documentation governing the relevant obligation. Short-Term Ratings are assigned to obligations whose initial maturity is viewed as "short-term" based on market convention. Typically, this means up to 13 months for corporate, sovereign and structured obligations, and up to 36 months for obligations in U.S. public finance markets.

**F1: Highest Short-Term Credit Quality**—Indicates the strongest intrinsic capacity for timely payment of financial commitments; may have an added "+" to denote any exceptionally strong credit feature.

**F2: Good Short-Term Credit Quality**—Good intrinsic capacity for timely payment of financial commitments.

**F3: Fair Short-Term Credit Quality**—The intrinsic capacity for timely payment of financial commitments is adequate.

**B: Speculative Short-Term Credit Quality**—Minimal capacity for timely payment of financial commitments, plus heightened vulnerability to near-term adverse changes in financial and economic conditions.

**C: High Short-Term Default Risk**—Default is a real possibility.

**RD: Restricted Default**—Indicates an entity that has defaulted on one or more of its financial commitments, although it continues to meet other financial obligations. Applicable to entity ratings only.

**D: Default**—Indicates a broad-based default event for an entity, or the default of a short-term obligation.

**39**

------

**A.M. BEST Company, Inc. (a.m. best) LONG-TERM DEBT and Preferred Stock RATINGS** 

A Best's long-term debt rating is Best's independent opinion of an issuer/entity's ability to meet its ongoing financial obligations to security holders when due.

**aaa: Exceptional**—Assigned to issues where the issuer has an exceptional ability to meet the terms of the obligation.

**aa: Very Strong**—Assigned to issues where the issuer has a very strong ability to meet the terms of the obligation.

**a: Strong**—Assigned to issues where the issuer has a strong ability to meet the terms of the obligation.

**bbb: Adequate**—Assigned to issues where the issuer has an adequate ability to meet the terms of the obligation; however, the issue is more susceptible to changes in economic or other conditions.

**bb: Speculative**—Assigned to issues where the issuer has speculative credit characteristics, generally due to a modest margin or principal and interest payment protection and vulnerability to economic changes.

**b: Very Speculative**—Assigned to issues where the issuer has very speculative credit characteristics, generally due to a modest margin of principal and interest payment protection and extreme vulnerability to economic changes.

**ccc, cc, c: Extremely Speculative**—Assigned to issues where the issuer has extremely speculative credit characteristics, generally due to a minimal margin of principal and interest payment protection and/or limited ability to withstand adverse changes in economic or other conditions.

**d: In Default**—Assigned to issues in default on payment of principal, interest or other terms and conditions, or when a bankruptcy petition or similar action has been filed.

Ratings from "aa" to "ccc" may be enhanced with a "+" (plus) or "-" (minus) to indicate whether credit quality is near the top or bottom of a category.

**A.M. BEST SHORT-TERM DEBT RATINGS** 

A Best's short-term debt rating is Best's opinion of an issuer/entity's ability to meet its financial obligations having original maturities of generally less than one year, such as commercial paper.

**AMB-1+ Strongest**—Assigned to issues where the issuer has the strongest ability to repay short-term debt obligations.

**AMB-1 Outstanding**—Assigned to issues where the issuer has an outstanding ability to repay short-term debt obligations.

**AMB-2 Satisfactory**—Assigned to issues where the issuer has a satisfactory ability to repay short-term debt obligations.

**AMB-3 Adequate**—Assigned to issues where the issuer has an adequate ability to repay short-term debt obligations; however, adverse economic conditions likely will reduce the issuer's capacity to meet its financial commitments.

**AMB-4 Speculative**—Assigned to issues where the issuer has speculative credit characteristics and is vulnerable to adverse economic or other external changes, which could have a marked impact on the company's ability to meet its financial commitments.

**d: In Default**—Assigned to issues in default on payment of principal, interest or other terms and conditions, or when a bankruptcy petition or similar action has been filed.

**A.M. Best Rating Modifiers** 

Both long- and short-term credit ratings can be assigned a modifier.

**u**—Indicates the rating may change in the near term, typically within six months. Generally is event-driven, with positive, negative or developing implications.

**pd**—Indicates ratings assigned to a company that chose not to participate in A.M. Best's interactive rating process (discontinued in 2010).

**i**—Indicates rating assigned is indicative.

**A.M. BEST RATING OUTLOOK** 

A.M. Best Credit Ratings are assigned a Rating Outlook that indicates the potential direction of a credit rating over an intermediate term, generally defined as the next 12 to 36 months.

**Positive**—Indicates possible ratings upgrade due to favorable financial/market trends relative to the current trading level.

**Negative**—Indicates possible ratings downgrade due to unfavorable financial/market trends relative to the current trading level.

**Stable**—Indicates low likelihood of rating change due to stable financial/market trends.

**Not Rated** 

Certain nationally recognized statistical rating organizations (NRSROs) may designate certain issues as NR, meaning that the issue or obligation is not rated.

**40**

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Addresses

**Federated Hermes Mortgage Strategy Portfolio**

Federated Hermes Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

**Distributor** 

Federated Securities Corp.

1001 Liberty Avenue

Pittsburgh, PA 15222-3779

**Investment Adviser** 

Federated Investment Management Company

1001 Liberty Avenue

Pittsburgh, PA 15222-3779

**Custodian** 

State Street Bank and Trust Company

1 Iron Street

Boston, MA 02110

**Transfer Agent and Dividend Disbursing Agent** 

SS&C GIDS, Inc.

P.O. Box 219318

Kansas City, MO 64121-9318

**Independent Registered Public Accounting Firm**

Ernst & Young LLP

200 Clarendon Street

Boston, MA 02116-5072

**41**

------

Appendix

The following is a list of persons, other than the Adviser and its affiliates, that have been approved to receive nonpublic portfolio holdings information concerning the Federated Hermes Complex; however, certain persons below might not receive such information concerning the Fund:

**CUSTODIAN(S)** 

State Street Bank and Trust Company

**INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

Ernst & Young LLP

**LEGAL COUNSEL** 

Goodwin Procter LLP

K&L Gates LLP

**Financial Printer(S)** 

Donnelley Financial Solutions

**Proxy Voting Administrator** 

Glass Lewis & Co., LLC

**SECURITY PRICING SERVICES** 

Bloomberg L.P.

IHS Markit (Markit North America)

ICE Data Pricing & Reference Data, LLC

JPMorgan PricingDirect

Refinitiv US Holdings Inc.

**RATINGS AGENCIES** 

Fitch, Inc.

Moody's Investors Service, Inc.

Standard & Poor's Financial Services LLC

**Other SERVICE PROVIDERS** 

Other types of service providers that have been approved to receive nonpublic portfolio holdings information include service providers offering, for example, trade order management systems, portfolio analytics, or performance and accounting systems, such as:

ACA Technology Surveillance, Inc.

Bank of America Merrill Lynch

Bloomberg L.P.

Charles River Development

Citibank, N.A.

Eagle Investment Systems LLC

Electra Information Systems

FactSet Research Systems Inc.

FISGlobal

Institutional Shareholder Services

Investortools, Inc.

MSCI ESG Research LLC

Sustainalytics U.S. Inc.

Wolters Kluwer N.V.

**42**

------

**Item 28. Exhibits**

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| | |
|:---|:---|
| &nbsp;&nbsp;**(a)** | &nbsp;&nbsp;**Declaration of Trust** |
|  | &nbsp;&nbsp;[Conformed copy of Amended and Restated Declaration of Trust of the Registrant dated October 3, 2005, including Amendment Nos. 1 through 5 as filed via EDGAR in Post-Effective Amendment No. 72 on December 29, 2020 on Form N-1A (File Nos. 333-128884 and 811-21822)](https://www.sec.gov/Archives/edgar/data/1340579/000162363220002124/exhibit-28a.htm) |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;**(b)** | &nbsp;&nbsp;**By-Laws** |
|  | &nbsp;&nbsp;[Conformed Copy of Amended and Restated By-Laws of the Registrant (effective June 26, 2020) including Amendment Nos. 1 through 3 as filed via EDGAR in Post-Effective Amendment No. 72 on December 29, 2020 on Form N-1A (File Nos. 333-128884 and 811-21822](https://www.sec.gov/Archives/edgar/data/1340579/000162363220002124/exhibit-28b.htm)) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Not Applicable** 

---

| | |
|:---|:---|
| &nbsp;&nbsp;**(d)** | &nbsp;&nbsp;**Investment Advisory Contracts** |
|  | &nbsp;&nbsp;**Federated Investment Management Company** |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;[Conformed copy of the Investment Advisory Contract of the Registrant dated December 1, 2005, including Exhibit A and Limited Power of Attorney dated June 1, 2007 as filed via EDGAR in Post-Effective Amendment No. 72 on December 29, 2020 on Form N-1A (File Nos. 333-128884 and 811-21822)](https://www.sec.gov/Archives/edgar/data/1340579/000162363220002124/exhibit-28d1.htm) |
|  | &nbsp;&nbsp;**Federated Equity Management Company of Pennsylvania** |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;[Conformed copy of the Investment Advisory Contract of the Registrant dated December 1, 2014, including Exhibit A and Limited Power of Attorney dated June 1, 2017 as filed via EDGAR in Post-Effective Amendment No. 72 on December 29, 2020 on Form N-1A (File Nos. 333-128884 and 811-21822)](https://www.sec.gov/Archives/edgar/data/1340579/000162363220002124/exhibit-28d2.htm) |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;**(e)** | &nbsp;&nbsp;**Underwriting Contracts** |
|  | &nbsp;&nbsp;[Conformed copy of the Distributor's Contract of the Registrant dated December 1, 2005, including Exhibits A through C as filed via EDGAR in Post-Effective Amendment No. 72 on December 29, 2020 on Form N-1A (File Nos. 333-128884 and 811-21822)](https://www.sec.gov/Archives/edgar/data/1340579/000162363220002124/exhibit-28e.htm) |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;**(f)** | &nbsp;&nbsp;**Bonus or Profit Sharing Contracts** |
|  | &nbsp;&nbsp;Not applicable |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;**(g)** | &nbsp;&nbsp;**Custodian Agreements** |
| &nbsp;&nbsp;1 | [Conformed copy of Amended and Restated Master Custodian Agreement dated March 1, 2017 by and between State Street Bank and Trust Company and the Registrant, including Appendix A, revised as of December 1, 2021, as filed via EDGAR in Post-Effective Amendment No. 75 on December 27, 2021 on Form N-1A (File Nos. 333-128884 and 811-21822)](https://www.sec.gov/Archives/edgar/data/1340579/000162363221001635/exhibit28-g1.htm) |
| &nbsp;&nbsp;2 | [Conformed copy of Custody Agreement dated June 7, 2005 by and between The Bank of New York Mellon and the Registrant, including Amendments 1-35, and Exhibits A and B, revised June 1, 2022, as filed via EDGAR in Post-Effective Amendment No. 78 on December 29, 2022 on Form N-1A (File Nos. 333-128884 and 811-21822)](https://www.sec.gov/Archives/edgar/data/1340579/000162363222001633/ex28g2.htm) |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**(h)** | &nbsp;&nbsp;**Other Material Contracts** |  |
| &nbsp;&nbsp;**1** | &nbsp;&nbsp;**Services Agreement** |  |
| &nbsp;&nbsp;(a) | &nbsp;&nbsp;[Conformed copy of Services Agreement between Federated Advisory Services Company and Federated Investment Management Company dated January 1, 2004, including Schedule 1 (revised September 1, 2022), as filed via EDGAR in Post-Effective Amendment No. 78 on December 29, 2022 on Form N-1A (File Nos. 333-128884 and 811-21822)](https://www.sec.gov/Archives/edgar/data/1340579/000162363222001633/ex28h1a.htm) |  |
| &nbsp;&nbsp;(b) | &nbsp;&nbsp;[Conformed copy of Services Agreement between Federated Advisory Services Company and Federated Equity Management Company of Pennsylvania dated January 1, 2004, including Schedule 1 (revised September 1, 2022), as filed via EDGAR in Post-Effective Amendment No. 78 on December 29, 2022 on Form N-1A (File Nos. 333-128884 and 811-21822)](https://www.sec.gov/Archives/edgar/data/1340579/000162363222001633/ex28h1b.htm) |  |
| &nbsp;&nbsp;**2** | &nbsp;&nbsp;**Transfer Agency Agreement** |  |
|  | &nbsp;&nbsp;[Conformed copy of the Assignment of the Transfer Agency and Service Agreement between the Federated Funds and State Street Bank and Trust Company to DST Asset Manager Solutions, Inc. dated June 1, 2022, including First Amendment dated July 2, 2022 and Schedule A (revised September 2, 2022)](ex28h2.htm) | &nbsp;&nbsp;**+** |
| &nbsp;&nbsp;**3** | &nbsp;&nbsp;**Administrative Services Agreement** |  |
|  | &nbsp;&nbsp;[Conformed copy of the Fourth Amended and Restated Agreement for Administrative Services between the Federated Funds and Federated Administrative Services dated September 1, 2022, including Exhibit A (revised December 1, 2022) and Exhibit B, as filed via EDGAR in Post-Effective Amendment No. 79 on January 26, 2023 on Form N-1A (File Nos. 333-128884 and 811-21822)](https://www.sec.gov/Archives/edgar/data/1340579/000162363223000159/exhibit28-h3.htm) |  |
| &nbsp;&nbsp;**4** | &nbsp;&nbsp;**Financial Administration and Accounting Agreement** |  |
| &nbsp;&nbsp;**(a)** | &nbsp;&nbsp;[Conformed copy of the Financial Administration and Accounting Services Agreement between the Federated Hermes Funds and State Street Bank and Trust Company dated March 1, 2011, as amended, including Exhibit A (updated as of December 1, 2021), as filed via EDGAR in Post-Effective Amendment No. 75 on December 27, 2021 on Form N-1A (File Nos. 333-128884 and 811-21822)](https://www.sec.gov/Archives/edgar/data/1340579/000162363221001635/exhibit28-h4a.htm) |  |
| &nbsp;&nbsp;**(b)** | &nbsp;&nbsp;[Conformed copy of the Financial Administration and Accounting Services Agreement between the Federated Hermes Funds and The Bank of New York Mellon dated March 1, 2011, as amended, including Schedule 1 (updated as of June 1, 2022)](ex28h4b.htm) | &nbsp;&nbsp;+ |

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| | |
|:---|:---|
| &nbsp;&nbsp;**(i)** | &nbsp;&nbsp;**Legal Opinion** |
|  | &nbsp;&nbsp;[Conformed copy of Opinion and Consent of Counsel as to legality of shares being registered, as filed in Pre-Effective Amendment No. 2 on Form N-1A June 6, 2006 (File Nos. 333-128884 and 811-21822)](https://www.sec.gov/Archives/edgar/data/1340579/000131814806000752/legalityopin.txt) |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**(j)** | &nbsp;&nbsp;**Other Opinions** |  |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;[Conformed copy of Consent of Independent Registered Public Accounting Firm, Ernst & Young (FCP, FHYSP, and FMSP)](ex28j1.htm) | &nbsp;&nbsp;+ |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Conformed copy of Consent of Independent Registered Public Accountant Firm, Ernst & Young (FIBSP) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Conformed copy of Consent of Independent Registered Public Accounting Firm, Ernst & Young (FIDSP) | &nbsp;&nbsp;N/A |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;**(k)** | &nbsp;&nbsp;**Omitted Financial Statements** |
|  | &nbsp;&nbsp;Not Applicable |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;**(l)** | &nbsp;&nbsp;**Initial Capital Agreements** |
|  | &nbsp;&nbsp;[Conformed copy of Initial Capital Understanding, as filed in Pre-Effective Amendment No. 2 on June 6, 2006 on Form N-1A (File Nos. 333-128884 and 811-21822)](https://www.sec.gov/Archives/edgar/data/1340579/000131814806000752/initialcapital.txt) |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;**(m)** | &nbsp;&nbsp;**Rule 12b-1 Plan** |
|  | &nbsp;&nbsp;Not applicable |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;**(n)** | &nbsp;&nbsp;**Rule 18f-3 Plan** |
|  | &nbsp;&nbsp;Not applicable |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;**(o)** | &nbsp;&nbsp;**Powers of Attorney** |
|  | [Conformed copy of Power of Attorney of the Registrant dated November 1, 2020 as filed via EDGAR in Post-Effective Amendment No. 72 on December 29, 2020 on Form N-1A (File Nos. 333-128884 and 811-21822)](https://www.sec.gov/Archives/edgar/data/1340579/000162363220002124/exhibit-28o.htm) |

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| | |
|:---|:---|
| &nbsp;&nbsp;**(p)** | &nbsp;&nbsp;**Codes of Ethics** |
|  | &nbsp;&nbsp;[Conformed copy of the Federated Hermes, Inc. Code of Ethics for Access Persons, effective November 10, 2021 as filed via EDGAR in Post-Effective Amendment No. 76 on January 28, 2022 on Form N-1A (File Nos. 333-128884 and 811-21822)](https://www.sec.gov/Archives/edgar/data/1340579/000162363222000124/ex28p.htm) |

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+ <u>Exhibit is being filed electronically with registration statement</u>  

**Exhibit List for Inline Interactive Data File Submission.**

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**Index No.** | **Description of Exhibit** |
| &nbsp;&nbsp;&nbsp;EX-101.INS | XBRL Instance Document - Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document. |
| &nbsp;&nbsp;&nbsp;EX-101.SCH | XBRL Taxonomy Extension Schema Document |
| &nbsp;&nbsp;&nbsp;EX-101.CAL | XBRL Taxonomy Extension Calculation Linkbase |
| &nbsp;&nbsp;&nbsp;EX-101.DEF | XBRL Taxonomy Extension Definition Linkbase |
| &nbsp;&nbsp;&nbsp;EX-101.LAB | XBRL Taxonomy Extension Labels Linkbase |
| &nbsp;&nbsp;&nbsp;EX-101.PRE | XBRL Taxonomy Extension Presentation Linkbase |

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&nbsp;&nbsp;**Item 29. Persons Controlled by or Under Common Control with the Fund:**

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| |
|:---|
| **Item 30. Indemnification** |
| &nbsp;&nbsp; Indemnification is provided to Officers and Trustees of the Registrant pursuant to the Registrant's By-Laws, as amended. This includes indemnification against: (a) any liabilities or expenses incurred in connection with the defense or disposition of any action, suit or proceeding in which an Officer or Trustee may be or may have been involved; and (b) any liabilities and expenses incurred by an Officer or Trustee as a result of having provided personally identifiable information to a regulator or counterparty by or with whom the Registrant (or its series, as applicable) is regulated or engages in business to satisfy a legal or procedural requirement of such regulator or counterparty.<br> The Investment Advisory Contract, and Sub-advisory Agreement as applicable, (collectively, "Advisory Contracts") between the Registrant and the investment adviser, and sub-adviser as applicable, (collectively, "Advisers") of its series, provide that, in the absence of willful misfeasance, bad faith, gross negligence, or reckless disregard of the obligations or duties under the Advisory Contracts on the part of the Advisers, Advisers shall not be liable to the Registrant or to any shareholder for any act or omission in the course of or connected in any way with rendering services or for any losses that may be sustained in the purchase, holding, or sale of any security.<br> The Registrant's distribution contract contains provisions limiting the liability, and providing for indemnification, of the Officers and Trustees under certain circumstances.<br> Registrant's Trustees and Officers are covered by an Investment Trust Errors and Omissions Policy.<br> Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to Trustees, Officers, and controlling persons of the Registrant by the Registrant pursuant to the By-Laws, as amended, or otherwise, the Registrant is aware that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Act and, therefore, is unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by Trustees), Officers, or controlling persons of the Registrant in connection with the successful defense of any act, suit, or proceeding) is asserted by such Trustees, Officers, or controlling persons in connection with the shares being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issues.<br> Insofar as indemnification for liabilities may be permitted pursuant to Section 17 of the Investment Company Act of 1940 for Trustees, Officers, and controlling persons of the Registrant by the Registrant pursuant to the By-Laws, as amended, or otherwise, the Registrant is aware of the position of the Securities and Exchange Commission as set forth in Investment Company Act Release No. IC-11330. Therefore, the Registrant undertakes that in addition to complying with the applicable provisions of the By-Laws, as amended, or otherwise, in the absence of a final decision on the merits by a court or other body before which the proceeding was brought, that an indemnification payment will not be made unless in the absence of such a decision, a reasonable determination based upon factual review has been made (i) by a majority vote of a quorum of non-party Trustees who are not interested persons of the Registrant or (ii) by independent legal counsel in a written opinion that the indemnitee was not liable for an act of willful misfeasance, bad faith, gross negligence, or reckless disregard of duties. The Registrant further undertakes that advancement of expenses incurred in the defense of a proceeding (upon undertaking for repayment unless it is ultimately determined that indemnification is appropriate) against an Officer, Trustee or controlling person of the Registrant will not be made absent the fulfillment of at least one of the following conditions: (i) the indemnitee provides security for his undertaking; (ii) the Registrant is insured against losses arising by reason of any lawful advances; or (iii) a majority of a quorum of disinterested non-party Trustees or independent legal counsel in a written opinion makes a factual determination that there is reason to believe the indemnitee will be entitled to indemnification. |

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| | |
|:---|:---|
| **Item 31. Business and Other Connections of Investment Adviser: Federated Investment Management Company** | **Item 31. Business and Other Connections of Investment Adviser: Federated Investment Management Company** |
| For a description of the other business of the Investment Adviser, see the section entitled "Who Manages the Fund?" in Part A. The affiliations with the Registrant of two of the Trustees and two of the Officers of the Investment Adviser are included in Part B of this Registration Statement under "Who Manages and Provides Services to the Fund?" The remaining Trustees of the Investment Adviser and, in parentheses, their principal occupations are: Thomas R. Donahue, (Chief Financial Officer, Federated Hermes, Inc.), 1001 Liberty Avenue, Pittsburgh, PA, 15222-3779, John B. Fisher, (Vice Chairman, Federated Hermes, Inc.) 1001 Liberty Avenue, Pittsburgh, PA, 15222-3779 and James J. Gallagher, II, Partner, Morris James LLP, 500 Delaware Avenue, Suite 1500, Wilmington, DE 19801-1494. The business address of each of the Officers of the Investment Adviser is 1001 Liberty Avenue, Pittsburgh, Pennsylvania 15222-3779. These individuals are also officers of a majority of the Investment Advisers to the investment companies in the Federated Hermes Fund Complex described in Part B of this Registration Statement. | For a description of the other business of the Investment Adviser, see the section entitled "Who Manages the Fund?" in Part A. The affiliations with the Registrant of two of the Trustees and two of the Officers of the Investment Adviser are included in Part B of this Registration Statement under "Who Manages and Provides Services to the Fund?" The remaining Trustees of the Investment Adviser and, in parentheses, their principal occupations are: Thomas R. Donahue, (Chief Financial Officer, Federated Hermes, Inc.), 1001 Liberty Avenue, Pittsburgh, PA, 15222-3779, John B. Fisher, (Vice Chairman, Federated Hermes, Inc.) 1001 Liberty Avenue, Pittsburgh, PA, 15222-3779 and James J. Gallagher, II, Partner, Morris James LLP, 500 Delaware Avenue, Suite 1500, Wilmington, DE 19801-1494. The business address of each of the Officers of the Investment Adviser is 1001 Liberty Avenue, Pittsburgh, Pennsylvania 15222-3779. These individuals are also officers of a majority of the Investment Advisers to the investment companies in the Federated Hermes Fund Complex described in Part B of this Registration Statement. |
| The Officers of the Investment Adviser are: | The Officers of the Investment Adviser are: |
| &nbsp;&nbsp;Chairman: | &nbsp;&nbsp;J. Christopher Donahue |
| &nbsp;&nbsp;President/ Chief Executive Officer: | &nbsp;&nbsp;John B. Fisher |
| &nbsp;&nbsp;Executive Vice Presidents: | &nbsp;&nbsp; Deborah A. Cunningham<br> Anne H. Kruczek<br> Robert J. Ostrowski<br> Timothy G. Trebilcock |
| &nbsp;&nbsp;Senior Vice Presidents: | &nbsp;&nbsp; Todd Abraham<br> Randall S. Bauer<br> Jonathan C. Conley<br> Mark E. Durbiano<br> Donald T. Ellenberger<br> Eamonn G. Folan<br> Richard J. Gallo<br> John T. Gentry<br> Michael R. Granito<br> Lori A. Hensler<br> Susan R. Hill<br> William R. Jamison<br> Jeffrey A. Kozemchak<br> Tracey L. Lusk<br> Judith J. Mackin<br> Marian R. Marinack<br> Mary Jo Ochson<br> Ihab Salib<br> Michael W. Sirianni, Jr.<br> Steven J. Wagner<br> Paige Wilhelm |
| &nbsp;&nbsp;Vice Presidents: | &nbsp;&nbsp; John Badeer<br> Christopher S. Bodamer<br> G. Andrew Bonnewell<br> Hanan Callas<br> David B. Catalane, Jr.<br> Nicholas S. Cecchini<br> James Chelmu<br> Leslie Ciferno<br> Jerome Conner<br> Lee R. Cunningham, II<br> Gregory Czamara, V<br> B. Anthony Delserone, Jr.<br> Jason DeVito<br> Bryan Dingle<br> William Ehling<br> Ann Ferentino<br> Kevin M. Fitzpatrick<br> Timothy P. Gannon<br> Kathryn P. Glass<br> James L. Grant<br> Nathan H. Kehm<br> Allen J. Knizner<br> Karen Manna<br> Daniel James Mastalski<br> Robert J. Matthews<br> Christopher McGinley<br> Keith E. Michaud<br> Karl Mocharko<br> Joseph M. Natoli<br> Gene Neavin<br> Bob Nolte<br> Liam O'Connell<br> Mary Kay Pavuk<br> John Polinski<br> Rae Ann Rice<br> Brian Ruffner<br> Thomas C. Scherr<br> John Sidawi<br> Paul Smith<br> Peter Snook<br> Kyle Stewart<br> Randal Stuckwish<br> Mary Ellen Tesla<br> James Damen Thompson<br> Nicholas S. Tripodes<br> Anthony A. Venturino<br> Mark Weiss<br> George B. Wright<br> Christopher Wu |
| &nbsp;&nbsp;Assistant Vice Presidents: | &nbsp;&nbsp; Patrick Benacci<br> Brandon Ray Hochstetler<br> Christopher F. Hopkins<br> Jeff J. Ignelzi<br> Bennett L. Lo<br> Nick Navari<br> Bradley Payne<br> Braden Rotberg<br> John W. Scullion<br> Steven J. Slanika<br> Tyler R. Stenger<br> Patrick O. Watson<br> Michael S. Wilson<br> John E. Wyda |
| &nbsp;&nbsp;Secretary: | &nbsp;&nbsp;G. Andrew Bonnewell |
| &nbsp;&nbsp;Assistant Secretaries: | &nbsp;&nbsp; Edward C. Bartley<br> George F. Magera<br>|
| &nbsp;&nbsp;Treasurer: | &nbsp;&nbsp;Thomas R. Donahue |
| &nbsp;&nbsp;Assistant Treasurers: | &nbsp;&nbsp; Jeremy D. Boughton<br> Richard A. Novak |
| &nbsp;&nbsp;Chief Compliance Officer: | &nbsp;&nbsp;Stephen Van Meter |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Item 31. Business and Other Connections of Investment Adviser: Federated Equity Management Company of Pennsylvania** | &nbsp;&nbsp;**Item 31. Business and Other Connections of Investment Adviser: Federated Equity Management Company of Pennsylvania** |
| &nbsp;&nbsp;For a description of the other business of the Investment Adviser, see the section entitled "Who Manages the Fund?" in Part A. The affiliations with the Registrant of one of the Trustees and two of the Officers of the Investment Adviser are included in Part B of this Registration Statement under "Who Manages and Provides Services to the Fund?" The remaining Trustees of the Investment Adviser and, in parentheses, their principal occupations are: Thomas R. Donahue, (Chief Financial Officer, Federated Hermes, Inc.), 1001 Liberty Avenue, Pittsburgh, PA, 15222-3779, John B. Fisher, (Vice Chairman, Federated Hermes, Inc.) 1001 Liberty Avenue, Pittsburgh, PA, 15222-3779 and James J. Gallagher, II, Partner, Morris James LLP, 500 Delaware Avenue, Suite 1500, Wilmington, DE 19801-1494. The business address of each of the Officers of the Investment Adviser is 1001 Liberty Avenue, Pittsburgh, Pennsylvania 15222-3779. These individuals are also officers of a majority of the Investment Advisers to the investment companies in the Federated Hermes Fund Complex described in Part B of this Registration Statement. | &nbsp;&nbsp;For a description of the other business of the Investment Adviser, see the section entitled "Who Manages the Fund?" in Part A. The affiliations with the Registrant of one of the Trustees and two of the Officers of the Investment Adviser are included in Part B of this Registration Statement under "Who Manages and Provides Services to the Fund?" The remaining Trustees of the Investment Adviser and, in parentheses, their principal occupations are: Thomas R. Donahue, (Chief Financial Officer, Federated Hermes, Inc.), 1001 Liberty Avenue, Pittsburgh, PA, 15222-3779, John B. Fisher, (Vice Chairman, Federated Hermes, Inc.) 1001 Liberty Avenue, Pittsburgh, PA, 15222-3779 and James J. Gallagher, II, Partner, Morris James LLP, 500 Delaware Avenue, Suite 1500, Wilmington, DE 19801-1494. The business address of each of the Officers of the Investment Adviser is 1001 Liberty Avenue, Pittsburgh, Pennsylvania 15222-3779. These individuals are also officers of a majority of the Investment Advisers to the investment companies in the Federated Hermes Fund Complex described in Part B of this Registration Statement. |
| &nbsp;&nbsp;The Officers of the Investment Adviser are: | &nbsp;&nbsp;The Officers of the Investment Adviser are: |
| &nbsp;&nbsp;Chairman | &nbsp;&nbsp;J. Christopher Donahue |
| &nbsp;&nbsp;President/ Chief Executive Officer: | &nbsp;&nbsp;John B. Fisher |
| &nbsp;&nbsp;Executive Vice President | &nbsp;&nbsp; Stephen F. Auth<br> Anne H. Kruczek<br> Timothy G. Trebilcock |
| &nbsp;&nbsp;Senior Vice Presidents: | &nbsp;&nbsp; Linda Bakhshian<br> Deborah D. Bickerstaff<br> Linda A. Duessel<br> Michael R. Granito<br> Stephen Gutch<br> Lori A. Hensler<br> Judith J. Mackin<br> Dana L. Meissner<br> Daniel Peris<br> Michael R. Tucker |
| &nbsp;&nbsp;Vice Presidents: | &nbsp;&nbsp; P. Ryan Bend<br> G. Andrew Bonnewell<br> Jared Hoff<br> Chad Hudson<br> Michael Jura<br> Damian McIntyre<br> Ian Miller<br> Edward J. Selker<br> Paul Smith<br> Eric Matthew Triplett |
| &nbsp;&nbsp;Assistant Vice Presidents: | &nbsp;&nbsp; Adam Koser<br> Keith Michaud<br> Brian Charles Smalley |
| &nbsp;&nbsp;Secretary: | &nbsp;&nbsp;G. Andrew Bonnewell |
| &nbsp;&nbsp;Assistant Secretaries: | &nbsp;&nbsp; Edward C. Bartley<br> George F. Magera |
| &nbsp;&nbsp;Treasurer: | &nbsp;&nbsp;Thomas R. Donahue |
| &nbsp;&nbsp;Assistant Treasurers: | &nbsp;&nbsp;Jeremy Boughton<br> Richard A. Novak |
| &nbsp;&nbsp;Chief Compliance Officer: | &nbsp;&nbsp;Stephen Van Meter |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Item 32. Principal Underwriters:** | &nbsp;&nbsp;**Item 32. Principal Underwriters:** |
| &nbsp;&nbsp;**(a)** | &nbsp;&nbsp;Federated Securities Corp., the Distributor for shares of the Registrant, acts as principal underwriter for the following investment companies, including the Registrant: |
|  | &nbsp;&nbsp;Federated Hermes Adjustable Rate Securities Trust |
|  | &nbsp;&nbsp;Federated Hermes Adviser Series |
|  | &nbsp;&nbsp;Federated Hermes Core Trust |
|  | &nbsp;&nbsp;Federated Hermes Core Trust III |
|  | &nbsp;&nbsp;Federated Hermes ETF Trust |
|  | &nbsp;&nbsp;Federated Hermes Equity Funds |
|  | &nbsp;&nbsp;Federated Hermes Equity Income Fund, Inc. |
|  | &nbsp;&nbsp;Federated Hermes Fixed Income Securities, Inc. |
|  | &nbsp;&nbsp;Federated Hermes Global Allocation Fund |
|  | &nbsp;&nbsp;Federated Hermes Government Income Securities, Inc. |
|  | &nbsp;&nbsp;Federated Hermes Government Income Trust |
|  | &nbsp;&nbsp;Federated Hermes High Income Bond Fund, Inc. |
|  | &nbsp;&nbsp;Federated Hermes High Yield Trust |
|  | &nbsp;&nbsp;Federated Hermes Income Securities Trust |
|  | &nbsp;&nbsp;Federated Hermes Index Trust |
|  | &nbsp;&nbsp;Federated Hermes Institutional Trust |
|  | &nbsp;&nbsp;Federated Hermes Insurance Series |
|  | &nbsp;&nbsp;Federated Hermes Intermediate Municipal Trust |
|  | &nbsp;&nbsp;Federated Hermes International Series, Inc. |
|  | &nbsp;&nbsp;Federated Hermes Investment Series Funds, Inc. |
|  | &nbsp;&nbsp;Federated Hermes Managed Pool Series |
|  | &nbsp;&nbsp;Federated Hermes MDT Series |
|  | &nbsp;&nbsp;Federated Hermes Money Market Obligations Trust |
|  | &nbsp;&nbsp;Federated Hermes Municipal Bond Fund, Inc. |
|  | &nbsp;&nbsp;Federated Hermes Municipal Securities Income Trust |
|  | &nbsp;&nbsp;Federated Hermes Premier Municipal Income Fund |
|  | &nbsp;&nbsp;Federated Hermes Project and Trade Finance Tender Fund |
|  | &nbsp;&nbsp;Federated Hermes Short-Intermediate Duration Municipal Trust |
|  | &nbsp;&nbsp;Federated Hermes Short-Intermediate Government Trust |
|  | &nbsp;&nbsp;Federated Hermes Short-Term Government Trust |
|  | &nbsp;&nbsp;Federated Hermes Total Return Government Bond Fund |
|  | &nbsp;&nbsp;Federated Hermes Total Return Series, Inc. |
|  | &nbsp;&nbsp;Federated Hermes World Investment Series, Inc. |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;(b) |  |  |
| &nbsp;&nbsp; (1)<br> Positions and Offices with Distributor | &nbsp;&nbsp; (2)<br> Name<br>| &nbsp;&nbsp; (3)<br> Positions and Offices With Registrant |
| &nbsp;&nbsp;Executive Vice President, Assistant Secretary and Director: | &nbsp;&nbsp;Thomas R. Donahue |  |
| &nbsp;&nbsp;President and Director: | &nbsp;&nbsp;Paul Uhlman |  |
| &nbsp;&nbsp;Vice President and Director: | &nbsp;&nbsp;Peter J. Germain |  |
| &nbsp;&nbsp;Director: | &nbsp;&nbsp;Frank C. Senchak |  |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp; (1)<br> Positions and Offices with Distributor | &nbsp;&nbsp; (2)<br> Name<br>| &nbsp;&nbsp; (3)<br> Positions and Offices With Registrant |
| &nbsp;&nbsp;Executive Vice Presidents: | &nbsp;&nbsp; Michael Bappert<br> Peter W. Eisenbrandt<br> Anne H. Kruczek<br> Amy M. Michaliszyn<br> Brian S. Ronayne |  |
| &nbsp;&nbsp;Senior Vice Presidents: | &nbsp;&nbsp; Irving Anderson<br> Christopher D. Berg<br> Daniel G. Berry<br> Jack Bohnet<br> Edwin J. Brooks, III<br> Bryan Burke<br> Scott J. Charlton<br> Steven R. Cohen<br> James S. Conley<br> Stephen R. Cronin<br> Charles L. Davis, Jr.<br> Jack C. Ebenreiter<br> James Getz, Jr.<br> Erik Gosule<br> Scott A. Gunderson<br> Dayna C. Haferkamp<br> Vincent L. Harper, Jr.<br> Bruce E. Hastings<br> Jeffrey S. Jones<br> Ryan W. Jones<br> Scott D. Kavanagh<br> Scott R. Kelley<br> Michael Koenig<br> Edwin C. Koontz<br> Jane E. Lambesis<br> Michael Liss<br> Judith J. Mackin<br> Brian McInis<br> Diane Marzula<br> Richard C. Mihm<br> Vincent T. Morrow<br> John C. Mosko<br> Alec H. Neilly<br> James E. Ostrowski<br> Stephen Otto<br> Richard P. Paulson<br> Richard A. Recker<br> Diane M. Robinson<br> Timothy A. Rosewicz<br> Eduardo G. Sanchez<br> Tom Schinabeck<br> Peter C. Siconolfi<br> Edward L. Smith<br> John A. Staley<br> Mark J. Strubel<br> William C. Tustin<br> G. Walter Whalen<br> Lewis C. Williams<br> Theodore E. Williams<br> Michael Wolff<br> Daniel R. Wroble<br> Erik Zettlemayer |  |
| &nbsp;&nbsp;Vice Presidents: | &nbsp;&nbsp; Frank Amato<br> Catherine M. Applegate<br> Kenneth C. Baber<br> Raisa E. Barkaloff<br> Robert W. Bauman<br> Marc Benacci<br> Joshua W. Billiel<br> Bill Boarts<br> Zachary Bono<br> Matthew A. Boyle<br> Thomas R. Brown<br> Ryan P. Cain<br> Mark Carroll<br> Dan Casey<br> Stephen J. Costlow<br> Mary Ellen Coyne<br> David G. Dankmyer<br> Christopher T. Davis<br> Michael DiMarsico<br> Charles R. Ebbs<br> Mark A. Flisek<br> Heather W. Froelich<br> David D. Gregoire<br> Raymond J. Hanley<br> George M. Hnaras<br> Scott A. Holick<br> Christopher Jackson<br> Todd Jones<br> Patrick Kelly<br> Nicholas R. Kemerer<br> Robert H. Kern<br> Shawn E. Knutson<br> Joseph R. Lantz<br> David M. Larrick<br> John S. Larson<br> Anthony W. Lennon<br> Justin Levy<br> John P. Liekar<br> Jonathan Lipinski<br> Paul J. Magan<br> Alexi A. Maravel<br> Meghan McAndrew<br> Samuel McGowan<br> Daniel McGrath<br> Mark J. Murphy<br> Ryan M. Newman<br> Catherine M. Nied<br> Ted Noethling<br> John A. O'Neill<br> Mark Patsy<br> Marcus Persichetti<br> Max E. Recker<br> Emory Redd<br> Matt Ryan<br> John Shrewsbury<br> Bradley Smith<br> John R. Stanley<br> Jonathan Sullivan<br> Gregory Tzanoukakis<br> James M. Wagner<br> David Wasik<br> Brian R. Willer<br> Littell Wilson Jr.<br> James J. Wojciak |  |
|  | &nbsp;&nbsp; Frank Amato<br> Catherine M. Applegate<br> Kenneth C. Baber<br> Raisa E. Barkaloff<br> Robert W. Bauman<br> Marc Benacci<br> Joshua W. Billiel<br> Bill Boarts<br> Zachary Bono<br> Matthew A. Boyle<br> Thomas R. Brown<br> Ryan P. Cain<br> Mark Carroll<br> Dan Casey<br> Stephen J. Costlow<br> Mary Ellen Coyne<br> David G. Dankmyer<br> Christopher T. Davis<br> Michael DiMarsico<br> Charles R. Ebbs<br> Mark A. Flisek<br> Heather W. Froelich<br> David D. Gregoire<br> Raymond J. Hanley<br> George M. Hnaras<br> Scott A. Holick<br> Christopher Jackson<br> Todd Jones<br> Patrick Kelly<br> Nicholas R. Kemerer<br> Robert H. Kern<br> Shawn E. Knutson<br> Joseph R. Lantz<br> David M. Larrick<br> John S. Larson<br> Anthony W. Lennon<br> Justin Levy<br> John P. Liekar<br> Jonathan Lipinski<br> Paul J. Magan<br> Alexi A. Maravel<br> Meghan McAndrew<br> Samuel McGowan<br> Daniel McGrath<br> Mark J. Murphy<br> Ryan M. Newman<br> Catherine M. Nied<br> Ted Noethling<br> John A. O'Neill<br> Mark Patsy<br> Marcus Persichetti<br> Max E. Recker<br> Emory Redd<br> Matt Ryan<br> John Shrewsbury<br> Bradley Smith<br> John R. Stanley<br> Jonathan Sullivan<br> Gregory Tzanoukakis<br> James M. Wagner<br> David Wasik<br> Brian R. Willer<br> Littell Wilson Jr.<br> James J. Wojciak |  |
| &nbsp;&nbsp;Assistant Vice Presidents: | &nbsp;&nbsp; Debbie Adams-Marshall<br> Edward R. Costello<br> Adina A. Davis<br> Madison Dischinger<br> Kristen C. Kiesling<br> Leah Kaitlin Leitzel<br> Stephen R. Massey<br> John K. Murray<br> Kathryn Ringer<br> Melissa R. Ryan<br> Carol Anne Sheppard<br> Scott A. Vallina<br> Laura Vickerman |  |
| &nbsp;&nbsp;Secretary: | &nbsp;&nbsp;Kary A. Moore |  |
| &nbsp;&nbsp;Assistant Secretaries: | &nbsp;&nbsp;Edward C. Bartley |  |
|  | &nbsp;&nbsp;Thomas R. Donahue |  |
|  | &nbsp;&nbsp;George F. Magera |  |
| &nbsp;&nbsp;Treasurer: | &nbsp;&nbsp;Richard A. Novak |  |
| &nbsp;&nbsp;Assistant Treasurer: | &nbsp;&nbsp;Jeremy D. Boughton |  |
| &nbsp;&nbsp;Chief Compliance Officer: | &nbsp;&nbsp;Stephen Van Meter |  |

---

&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;&nbsp;**(c)** Not
 Applicable

---

| |
|:---|
| &nbsp;&nbsp;**Item 33. Location of Accounts and Records:** |
| &nbsp;&nbsp;All accounts and records required to be maintained by Section 31(a) of the Investment Company Act of 1940 and Rules 31a-1 through 31a-3 promulgated thereunder and those records required to be maintained at one of the following locations: |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Registrant** | &nbsp;&nbsp; Federated Hermes Funds<br> 4000 Ericsson Drive<br> Warrendale, PA 15086-7561<br> (Notices should be sent to the Agent for Service at the address listed on the facing page of this filing.) |
| &nbsp;&nbsp; **Federated Administrative Services** <br> (Administrator) | &nbsp;&nbsp; 1001 Liberty Avenue<br> Pittsburgh, PA 15222-3779<br>|
| &nbsp;&nbsp; **Federated Securities Corp.**<br> (Distributor) | &nbsp;&nbsp; 1001 Liberty Avenue<br> Pittsburgh, PA 15222-3779<br>|
| &nbsp;&nbsp; **Federated Investment Management Company** <br> (Adviser to Federated Hermes Corporate Bond Strategy Portfolio, Federated Hermes High-Yield Strategy Portfolio, Federated Hermes International Bond Strategy Portfolio and Federated Hermes Mortgage Strategy Portfolio) | &nbsp;&nbsp; 1001 Liberty Avenue<br> Pittsburgh, PA 15222-3779 |
| &nbsp;&nbsp; **Federated Equity Management Company of Pennsylvania** <br> (Adviser to Federated Hermes International Dividend Strategy Portfolio) | &nbsp;&nbsp; 1001 Liberty Avenue<br> Pittsburgh, PA 15222-3779 |
| &nbsp;&nbsp; **SS&C GIDS, Inc.**<br> (Transfer Agent and Dividend Disbursing Agent) | &nbsp;&nbsp; P.O. Box 219318<br> Kansas City, MO 64121-9318 |
| &nbsp;&nbsp; **State Street Bank and Trust Company**<br> (Custodian for Federated Hermes Corporate Bond Strategy Portfolio, Federated Hermes High-Yield Strategy Portfolio, and Federated Hermes Mortgage Strategy Portfolio) | &nbsp;&nbsp; 1 Iron Street<br> Boston, MA 02110 |
| &nbsp;&nbsp;**Bank of New York Mellon**<br> (Custodian for Federated Hermes International Bond Strategy Portfolio and Federated Hermes International Dividend Strategy Portfolio) | &nbsp;&nbsp; One Wall Street<br> New York, NY 10286<br>|

---

&nbsp;&nbsp;**Item 34. Management Services:** Not applicable.

---

| |
|:---|
| &nbsp;&nbsp;**Item 35. Undertakings:** |
| &nbsp;&nbsp;Registrant hereby undertakes to comply with the provisions of Section 16(c) of the 1940 Act with respect to the removal of Trustees and the calling of special shareholder meetings by shareholders. |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp; SIGNATURES<br> Pursuant to the requirements of the Securities Act of 1933, and the Investment Company Act of 1940, the Registrant, FEDERATED HERMES MANAGED POOL SERIES, **certifies that it meets all of the requirements for effectiveness of this Amendment to its Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and** has duly caused this Amendment to its Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Pittsburgh and Commonwealth of Pennsylvania, on the 23rd day of February 2023. | &nbsp;&nbsp; SIGNATURES<br> Pursuant to the requirements of the Securities Act of 1933, and the Investment Company Act of 1940, the Registrant, FEDERATED HERMES MANAGED POOL SERIES, **certifies that it meets all of the requirements for effectiveness of this Amendment to its Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and** has duly caused this Amendment to its Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Pittsburgh and Commonwealth of Pennsylvania, on the 23rd day of February 2023. | &nbsp;&nbsp; SIGNATURES<br> Pursuant to the requirements of the Securities Act of 1933, and the Investment Company Act of 1940, the Registrant, FEDERATED HERMES MANAGED POOL SERIES, **certifies that it meets all of the requirements for effectiveness of this Amendment to its Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and** has duly caused this Amendment to its Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Pittsburgh and Commonwealth of Pennsylvania, on the 23rd day of February 2023. |
| &nbsp;&nbsp;FEDERATED HERMES MANAGED POOL SERIES | &nbsp;&nbsp;FEDERATED HERMES MANAGED POOL SERIES | &nbsp;&nbsp;FEDERATED HERMES MANAGED POOL SERIES |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BY: <u>/s/ George F. Magera</u><br> George F. Magera, Assistant Secretary | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BY: <u>/s/ George F. Magera</u><br> George F. Magera, Assistant Secretary | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BY: <u>/s/ George F. Magera</u><br> George F. Magera, Assistant Secretary |
| &nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, this Amendment to its Registration Statement has been signed below by the following person in the capacity and on the date indicated: | &nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, this Amendment to its Registration Statement has been signed below by the following person in the capacity and on the date indicated: | &nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, this Amendment to its Registration Statement has been signed below by the following person in the capacity and on the date indicated: |
| &nbsp;&nbsp;NAME | &nbsp;&nbsp;TITLE | &nbsp;&nbsp;DATE |
| &nbsp;&nbsp; BY: <u>/s/ George F. Magera</u><br> George F. Magera,<br> Assistant Secretary | &nbsp;&nbsp;Attorney In Fact For the Persons Listed Below | &nbsp;&nbsp;February 23, 2023 |
| &nbsp;&nbsp;J. Christopher Donahue\* | &nbsp;&nbsp;President and Trustee (Principal Executive Officer) |  |
| &nbsp;&nbsp;John B. Fisher\* | &nbsp;&nbsp;Trustee |  |
| &nbsp;&nbsp;Lori A. Hensler\* | &nbsp;&nbsp;Treasurer (Principal Financial Officer/Principal Accounting Officer) |  |
| &nbsp;&nbsp;John T. Collins\* | &nbsp;&nbsp;Trustee |  |
| &nbsp;&nbsp;G. Thomas Hough\* | &nbsp;&nbsp;Trustee |  |
| &nbsp;&nbsp;Maureen Lally-Green\* | &nbsp;&nbsp;Trustee |  |
| &nbsp;&nbsp;Thomas M. O'Neill\* | &nbsp;&nbsp;Trustee |  |
| &nbsp;&nbsp;Madelyn A. Reilly\* | &nbsp;&nbsp;Trustee |  |
| &nbsp;&nbsp;P. Jerome Richey\* | &nbsp;&nbsp;Trustee |  |
| &nbsp;&nbsp;John S. Walsh\* | &nbsp;&nbsp;Trustee |  |
| &nbsp;&nbsp;\*By Power of Attorney |  |  |

---

## Ex-99.H

Exhibit 28 (h) (2) under Form N-1A<br> Exhibit (10) under Item 601/Reg. S-K

**Services Agreement**

This Services Agreement (the "<u>Agreement</u>") is entered into and effective as of June 1, 2022 (the "<u>Effective Date</u>") by and between:

1. **DST Asset Manager Solutions, Inc.,** a corporation organized in the
Commonwealth of Massachusetts (referred to herein as "DST" or the "Transfer Agent"), and

2. Each of the investment vehicles listed in <u>Schedule A</u> (each, a " <u>Fund</u> "
and collectively, the " <u>Funds</u> ");

The Funds and DST each may be referred to individually as a "<u>Party</u>" or collectively as "<u>Parties</u>."

**1.**  **<u>Definitions; Interpretation</u>** 

1.1. As used in this Agreement, the following terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Action</u>" means any civil, criminal, regulatory or administrative lawsuit, allegation, demand, claim, counterclaim, action, dispute, sanction, suit, request, inquiry, investigation, arbitration or proceeding, in each case, made, asserted, commenced or threatened by any Person (including any Government Authority).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Affiliate</u>" means, with respect to any Person, any other Person that is controlled by, controls, or is under common control with such Person and "control" of a Person means: (i) ownership of, or possession of the right to vote, more than 25% of the outstanding voting equity of that Person or (ii) the right to control the appointment of the board of directors or analogous governing body, management or executive officers of that Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Authorized Person</u>" has the meaning set forth in Schedule B "Services" hereto, Section B.1.A(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Business Day</u>" means a day other than a Saturday or Sunday on which the New York Stock Exchange is open for business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Claim</u>" means any Action arising out of the subject matter of, or in any way related to, this Agreement, its formation or the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Fund Data</u>" means all information Fund, including data related to securities trades and other transaction data, investment returns, issue descriptions, and Market Data provided by the Fund and all output and derivatives thereof, necessary to enable DST to perform the Services, but excluding DST Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Confidential Information</u>" means any information about the Fund or DST, including this Agreement, and any third party information that either Party is required to keep confidential, including Customer Information, except for information that (i) is or becomes part of the public domain without breach of this Agreement by the receiving Party, (ii) was rightfully acquired from a third party, or is developed independently, by the receiving Party, or (iii) is generally known by Persons in the technology, securities, or financial services industries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Customer Information</u>" means all the customer identifying data however collected or received, including without limitation, through "cookies" or non-electronic means pertaining to or identifiable to the Fund's shareholders, prospective shareholders and plan administrators (collectively, "Fund Customers"), including without limitation, (i) name, address, email address, passwords, account numbers, personal financial information, personal preferences, demographic data, marketing data, data about securities transactions, credit data or any other identification data; or (ii) any data otherwise submitted in the process of registering for a Fund service. For the avoidance of doubt, Customer Information shall include, without limitation, all "nonpublic personal information," as defined under the GLB Act and all "personal information" as defined in the Mass Privacy Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Data Supplier</u>" means a third party supplier of Market Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>DST Associates</u>" means DST and each of its Affiliates, members, shareholders, directors, officers, partners, employees, agents, successors or assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>DST Property</u>" means all hardware, software, source code, data, report designs, spreadsheet formulas, information gathering or reporting techniques, know-how, technology and all other property commonly referred to as intellectual property used by DST in connection with its performance of the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>GLB Act</u>" means the Gramm-Leach-Bliley Act of 1999 (Public Law 106-102, 113 Stat. 1138)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>Governing Documents</u>" means the constitutional documents of an entity and, with respect to the Fund, the Fund's prospectus and statement of additional information and all minutes of meetings of the board of directors or analogous governing body.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>Government Authority</u>" means any relevant administrative, judicial, executive, legislative or other governmental or intergovernmental entity, department, agency, commission, board, bureau or court, and any other regulatory or self-regulatory organizations, in any country or jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "<u>Law</u>" means statutes, rules, regulations, interpretations and orders of any Government Authority that are applicable to the party upon which compliance with such Law is being required or to its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "<u>Losses</u>" means any and all compensatory, direct, indirect, special, incidental, consequential, punitive, exemplary, enhanced or other damages, settlement payments, attorneys' fees, costs, damages, charges, expenses, interest, applicable taxes or other losses of any kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "<u>Market Data</u>" means any third party market and reference data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "<u>Mass Privacy Act</u>" means the Massachusetts Standards for the Protection of Personal Information, 201 CMR 17.00, et seq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "<u>Person</u>" means any natural person or corporate or unincorporated entity or organization and that person's personal representatives, successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "<u>Services</u>" means the services listed in <u>Schedule A</u>, as may be amended, or under such other service Schedules, which may be added to this Agreement by the Parties from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "<u>Service Schedules</u>" has the meaning set forth in Section 2.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>Third Party Claim</u>" means a Claim (i) brought by any Person other than the indemnifying Party or (ii) brought by a Party on behalf of or that could otherwise be asserted by a third party.

1.2. Other capitalized terms used in this Agreement but not defined in this Section 1 shall have the meanings ascribed thereto.

1.3. Section and Schedule headings shall not affect the interpretation of this Agreement. This Agreement includes the schedules and appendices hereto. In the event of a conflict between this Agreement and a schedule or appendix, the former shall control, except to the extent that such schedule or appendix expressly provides otherwise as to the services under such schedule or appendix.

1.4. Words in the singular include the plural and words in the plural include the singular. The words "including," "includes," "included" and "include", when used, are deemed to be followed by the words "without limitation." Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "hereof," "herein" and "hereunder" and words of analogous import shall refer to this Agreement as a whole and not to any particular provision of this Agreement.

1.5. The Parties' duties and obligations are governed by and limited to the express terms and conditions of this Agreement, and shall not be modified, supplemented, amended or interpreted in accordance with, any industry custom or practice, or any internal policies or procedures of any Party that are not referenced in this Agreement or the applicable Schedule. The Parties have mutually negotiated the terms hereof and there shall be no presumption of law relating to the interpretation of contracts against the drafter.

**2.**  **<u>Services and Fees</u>** 

2.1. Subject to the terms of this Agreement, DST will perform, with reasonable care, skill, prudence and diligence, and in accordance with applicable Law, for the Fund and, if and to the extent specifically set forth therein, the Services set forth in <u>Schedule B</u> and such other service schedules as may be added to this Agreement by the Parties (collectively, the "<u>Service Schedules</u>"). DST shall be under no duty or obligation to perform any service except as specifically listed in the Service Schedules, or take any other action except as specifically listed in a Service Schedules to this Agreement, or this Agreement, and no other duties or obligations, including, valuation related, fiduciary or analogous duties or obligations, shall be implied. Fund requests to change the Services, will only be binding on DST when they are reflected in an amendment to the Service Schedules. For the avoidance of doubt DST agrees to amend the Service Schedules if necessitated by a change in applicable Law or a change to the Governing Documents of the Fund. For clarification, this will include costs related changes to the software, systems or processes used by DST to provide the Services necessitated by change in applicable Law; provided in such case the Fund will only be responsible for its pro-rata share of such cost.

2.2. In carrying out its duties and obligations pursuant to this Agreement, some or all Services may, with the Fund's prior written consent, be delegated by DST to one or more of its Affiliates or other Persons (and any Fund consent to such delegation, if any, shall not be unreasonably revoked or withheld in respect of any such delegations), provided that such Persons are selected in good faith and with reasonable care and are monitored by DST. If DST delegates any Services, (i) such delegation shall not relieve DST of its duties and obligations hereunder, (ii) such delegation shall be subject to a written agreement obliging the delegate to comply with the relevant delegated duties and obligations of DST, and (iii) DST will identify such agents and the Services delegated and will update the Fund when making any material changes in sufficient detail to enable the Fund to revoke its consent to a particular arrangement.

2.3. [ ]

2.4. Charges attendant to the development of reasonable changes to the TA2000 System requested by the Fund ("Client Requested Software") shall be at DST's standard rates and fees in effect at the time as set forth in the Fee Letter. If the cost to DST of operating the TA2000 System is increased by the addition of Client Requested Software, DST shall be entitled to increase its fees by an amount to be mutually agreed upon in the Fee Letter.

**3.**  **<u>Fund Responsibilities</u>** 

3.1. The management and control of the Fund are vested exclusively in the Fund's governing body (e.g., the board of directors or trustees for a Fund that is a mutual fund or the Trustee for a Fund that is a collective trust, as applicable) and such officers and agents as may be appointed by the board from time to time, subject to the terms and provisions of the Fund's Governing Documents. The Fund's governing body and the duly appointed officers and agents appointed by the governing body on behalf of the Fund will make all decisions, perform all management functions relating to the operation of the Fund and shall authorize all Transactions. Without limiting the foregoing, the Fund shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designate properly qualified individuals to oversee the Services and establish and maintain internal controls, including monitoring the ongoing activities of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Evaluate the accuracy, and accept responsibility for the results, of the Services, review and approve all reports, analyses and records resulting from the Services and inform DST of any errors that it is in a position to identify.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Provide DST with timely and accurate information required by DST in order to perform the Services and its duties and obligations hereunder.

3.2. Without limiting DST's obligations to comply with applicable Law and the Fund's Governing Documents, the Fund is responsible for ensuring that it complies with Law and its respective Governing Documents. It is the Fund's responsibility to provide all final Fund Governing Documents as of the Effective Date. The Fund will notify DST in writing of any changes to the Fund Governing Documents, with the exception of minutes of meetings of the board of directors, that may materially impact the Services prior to such changes taking effect. DST is not responsible for monitoring compliance by the Fund with (i) Law, or (ii) its respective Governing Documents.

3.3. In the event that Market Data is supplied to or through DST Associates in connection with the Services, the Market Data is proprietary to Data Suppliers and is provided on a limited internal-use license basis. Market Data may: (i) only be used by the Fund in connection with the Services and (ii) not be disseminated by the Fund or used to populate internal systems in lieu of obtaining a data license. Access to and delivery of Market Data is dependent on the Data Suppliers and may be interrupted or discontinued with or without notice. Notwithstanding anything in this Agreement to the contrary, neither DST nor any Data Supplier shall be liable to the Fund or any other Person for any Losses with respect to Market Data, reliance by DST Associates or the Fund on Market Data or the provision of Market Data in connection with this Agreement.

3.4. The Fund shall deliver, and procure that its agents, counsel, advisors, auditors, and any other Persons promptly deliver to DST all Fund Data. The Fund shall arrange with each such Person to deliver such information and materials on a timely basis, and DST will not be required to enter any agreements with that Person in order for DST to provide the Services.

3.5. Notwithstanding anything in this Agreement to the contrary, so long as they act in good faith and without negligence, willful misconduct or fraud, DST Associates shall be entitled to rely on the authenticity, completeness and accuracy of information and communications received by DST Associates from Authorized Persons, or Proper Instructions from the Fund in connection with the performance of the Services and DST's duties and obligations hereunder, without further enquiry or liability.

**4.**  **<u>Term</u>** 

4.1. The initial term of this Agreement will be from the Effective Date through February 28, 2027 ("<u>Initial Term</u>"). Thereafter, this Agreement will automatically renew for successive terms of 1 year each unless either DST or the Fund provides the other with a written notice of termination at least 180 calendar days prior to the commencement of any successive term (such periods, in the aggregate, the "<u>Term</u>").

**5.**  **<u>Termination</u>** 

5.1. DST or the Fund also may, by written notice to the other, terminate this Agreement for cause if any of the following events occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Fund breaches any material term, condition or provision of this Agreement, which breach, if capable of being cured, is not cured within 60 calendar days after DST gives the Fund written notice of such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) DST breaches any material term, condition or provision of this Agreement, which breach, if capable of being cured, is not cured within 60 calendar days after the Fund gives DST written notice of such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The other Party (i) terminates or suspends its business, (ii) becomes insolvent, admits in writing its inability to pay its debts as they mature, makes an assignment for the benefit of creditors, or becomes subject to direct control of a trustee, receiver or analogous authority, or (iii) becomes subject to any bankruptcy, insolvency or analogous proceeding or (iv) where the other Party is the Fund, material changes in the Fund's Governing Documents or the assumptions set forth in the Fee Letter are mutually agreed by both parties in writing to materially affect the Services or to be materially adverse to DST.

If any such event occurs, the termination will become effective immediately or on the date stated in the written notice of termination, which date shall not be greater than 90 calendar days after the event.

5.2. [ ]

5.3. Upon receipt of a termination notice from the Fund, subject to the receipt by DST of all undisputed, properly invoiced, and then-due fees, charges and expenses, DST shall continue to provide the Services up to the effective date of the termination notice; thereafter, DST shall have no obligation to perform any services of any type unless and to the extent set forth in an amendment to this Agreement executed by DST. In the event of the termination of this Agreement, DST shall provide reasonable exit assistance to the Fund in converting the Fund's records from DST's systems to whatever services or systems are designated by the Fund (the "Deconversion"); provided that all fees, charges and expenses have been paid, including any fees required under <u>Section 5.4</u> for the balance of the unexpired portion of the Term, if applicable. The Deconversion is subject to the recompense of DST for such assistance at its standard rates and fees in effect at the time and to a reasonable time frame for performance as agreed to by the parties. As used herein "reasonable exit assistance" shall not include requiring DST (i) to assist any new service or system provider to modify, to alter, to enhance, or to improve such provider's system, or to provide any new functionality to such provider's system, (ii) to disclose any protected information of DST, including the proprietary information of DST or its affiliates, or (iii) to develop Deconversion software, to modify any of DST's software, or to otherwise alter the format of the data as maintained on any provider's systems.

5.4. [ ]

5.5. In the event that the Fund wishes to retain DST to perform additional transition or related post-termination services, including providing additional data and reports, the Fund and DST shall agree in writing to the additional services and related fees and expenses in an amendment to this Agreement. To the extent any services are performed by DST for the Fund after the termination of this Agreement, all of the provisions of this Agreement except portions that are inapplicable to such continuing services shall survive the termination of this Agreement for so long as those services are performed. Termination of this Agreement shall not affect: (i) any liabilities or obligations of any Party arising before such termination (including payment of fees and expenses) or (ii) any damages or other remedies to which a Party may be entitled for breach of this Agreement or otherwise. Sections 2.3, 5, 6, 8, 9, 10, 11, 12, and 13 of this Agreement shall survive the termination of this Agreement.

**6.**  **<u>Standard of Care, Limitation of Liability and Indemnification</u>** 

6.1. [ ]

6.2 DST shall not be responsible for, and the Fund shall, subject to the provisions of Section 6.1 above, indemnify, defend and hold harmless DST and its directors, officers, employees, agents, subcontractors, Affiliates and subsidiaries (the "DST Indemnitees") from and against direct Losses (including legal fees and costs to enforce this provision) that may at any time be asserted against or incurred by any of them in connection with Third Party Claims solely arising out of or in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All actions of DST or DST Indemnitees required to be taken pursuant to this Agreement (including the defense of any lawsuit in a DST's name or the name of a DST Indemnitee), provided that such actions were taken in good faith and without negligence, willful misconduct or fraud;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Fund's lack of good faith, negligence or willful misconduct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The reliance upon, and any subsequent use of or action taken or omitted, by DST, or DST Indemnitees on: (i) any information, records, documents, data, stock certificates or services, which are received by DST or DST Indemnitees by hard copy, machine readable input, facsimile, data entry, email, electronic instructions, or other similar means authorized by the Fund, and which have been prepared, maintained or performed by the Fund or any other person or firm on behalf of the Fund including but not limited to any broker-dealer, TPA or previous transfer agent; (ii) any Proper Instructions (as defined below); (iii) any written instructions or opinions of the Fund's legal counsel with respect to any matter arising in connection with the services to be performed by DST under this Agreement that are provided to DST by the Fund after consultation by the Fund with such legal counsel and that expressly allow DST to rely upon such instructions or opinions; or (iv) any paper or document, reasonably believed to be genuine, authentic, or signed by the proper person or persons with the authority to provide instructions to DST hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The offer or sale of Shares in violation of federal or state securities laws or regulations requiring that such Shares be registered, or in violation of any stop order or other determination or ruling by any federal or any state agency with respect to the offer or sale of such Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The acceptance of facsimile or email transaction requests on behalf of individual shareholders of the Fund from broker-dealers, TPAs or the Fund, and the reliance by DST or DST Indemnitees on the broker-dealer, TPA or the Fund ensuring that the original source documentation is in good order and properly retained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The negotiation and processing of any checks, wires and ACH transmissions including without limitation for deposit into, or credit to, the Fund's demand deposit accounts maintained by DST; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The entering into or the carrying out of any obligations under, any NSCC agreements required for the transmission of Fund or Fund shareholder data through the NSCC clearing systems.

When used in this Agreement, the term <u>"Proper Instructions"</u> shall mean a writing signed or initialed by one or more persons as shall have been authorized from time to time by the board of directors/trustees of each Fund (the <u>"Board")</u> and with respect to which a written confirmation of such authorization shall have been filed with DST by the Fund. Each such writing shall set forth the specific transaction or type of transaction involved. Oral instructions ("Oral Instructions") will be deemed to be Proper Instructions if (a) they otherwise comply with the definition thereof and (b) DST reasonably believes them to have been given by a person authorized to give such instructions with respect to the transaction involved. The Fund shall promptly confirm all Oral Instructions or cause such Oral Instructions given by a third party who is authorized to give such Oral Instructions, to be promptly confirmed in writing. Proper Instructions may include communications effected through electro-mechanical or electronic devices. Proper Instructions, oral or written, may only be amended or changed in writing, including without limitation through electro-mechanical or electronic device.

6.3 DST shall, subject to the provisions of Section 6.1 above, indemnify, defend and hold harmless the Fund and its directors, officers, employee, agents, subcontractors, Affiliates and subsidiaries (the "<u>Fund Indemnitees</u>") from and against direct Losses (including legal fees and costs to enforce this provision) that may at any time be asserted against or incurred by any of them in connection with third party claims arising solely out of or in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) DST's failure to perform the Services in accordance with the terms of this Agreement in good faith and without negligence or willful misconduct or fraud in the performance of its obligations under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a claim that any aspect of the Services or systems provided under, and used within the scope of, this Agreement infringes any U.S. patent, copyright, trade secret or other intellectual property rights. With respect to any claims under this Section 6.3(b), DST may, in its sole discretion, either (i) procure for the Fund a right to continue to use such service or system, (ii) replace or modify the service or system so as to be non-infringing without materially affecting the functions of the service or system, or (iii) if, in DST's reasonable discretion, the actions described in (i) and (ii) are not capable of being accomplished on commercially reasonable terms, terminate this Agreement with respect to the affected service or system. Notwithstanding the foregoing, DST shall have no liability or obligation of indemnity for any claim which is based upon a modification of a service or system by anyone other than DST, use of such service or system other than in accordance with the terms of this Agreement, or use of such service or system in combination with other software or hardware not provided by DST if infringement could have been avoided by not using the service or system in combination with such other software or hardware

6.4 In order that the indemnification provisions contained in this Section 6 shall apply, upon the assertion of a claim for which one party may be required to indemnify the other party, the indemnified party shall promptly notify the indemnifying party of such assertion and shall keep the indemnifying party advised with respect to all developments concerning such claim. The indemnifying party shall have the option to participate with the indemnified party in the defense of such claim or to defend against said claim in its own name or in the name of the indemnified party. The indemnified party shall in no case confess any claim or make any compromise in any case in which the indemnifying party may be required to indemnify the indemnified party except with the indemnifying party's prior written consent.

**7.**  **<u>Representations, Warranties and Covenants</u>** 

7.1. Each Party represents and warrants to each other Party that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is a legal entity duly created, validly existing and in good standing under the Law of the jurisdiction in which it is created and is in good standing in each other jurisdiction where the failure to be in good standing would have a material adverse effect on its business or its ability to perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to Section 3.3 with respect to licenses from a Data Supplier, which may be terminated at any time, it has all necessary legal power and authority to own, lease and operate its assets and to carry on its business as presently conducted and as it will be conducted pursuant to this Agreement and will comply in all material respects with all Law to which it may be subject, and to the best of its knowledge and belief, it is not subject to any Action that would prevent it from performing its duties and obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) It has all necessary legal power and authority to enter into this Agreement, the execution of which has been duly authorized and will not violate the terms of any other agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Person signing on its behalf has the authority to contractually bind it to the terms and conditions in this Agreement and that this Agreement constitutes a legal, valid and binding obligation of it, enforceable against it in accordance with its terms.

7.2. The Fund represents and warrants to DST that (i) Proper Instructions are consistent with the Governing Documents of Fund and other corporate actions thereof and (ii) it will promptly notify DST of (1) any Action against it and (2) changes (or pending changes) in applicable Law or the Governing Documents of the Fund that are relevant to the Services.

7.3. DST represents and warrants to the Fund that (i) it is in compliance with federal securities law requirements in all material respects with respect to its business, including but not limited to applicable Law, and is in good standing as a registered transfer agent under Section 17A(c)(2) of the Securities Exchange Act of 1934, as amended.

7.4. DST maintains, and covenants that during the Term hereof, it shall maintain a Financial Institution Bond (FIB) insurance policy covering losses resulting from theft committed by employees, a cyber liability insurance policy (or shall maintain cyber liability coverage through other insurance policies set forth herein), and a Professional Liability insurance policy covering errors and omissions by DST in the performance of services for the Funds, with all aforementioned policies with such limits and with such carriers, deemed appropriate and commercially reasonable in terms of coverage and policy limits by DST's management in light of DST's duties and responsibilities hereunder. Upon the request of the Funds, DST shall provide certificates of insurance as evidence that such coverages are in place.

**8.**  **<u>Fund Data</u>** 

8.1. The Fund (i) will provide or ensure that other Persons provide all Fund Data to DST in an electronic format that is acceptable to DST (or as otherwise agreed in writing) and (ii) confirm that each has the right to so share such Fund Data. As between DST and the Fund, all Fund Data shall remain the property of the applicable Fund. Fund Data shall not be used or disclosed by DST other than in connection with providing the Services and as permitted under <u>Section 11</u>. Subject to the terms of this Agreement, DST shall be permitted to act upon instructions from an Authorized Person with respect to the disclosure or disposition of Fund Data but may refuse to act upon such instructions where it doubts, reasonably and in good faith, the authenticity or authority of such instructions.

8.2. DST shall keep records relating to the services to be performed hereunder, in the form and manner as it may deem advisable. To the extent required by Section 31 of the 1940 Act, DST agrees that all such records prepared or maintained by DST relating to the services to be performed by DST hereunder are the property of the Fund and will be preserved, maintained and made available in accordance with the Act, and will be surrendered promptly to the Fund on and in accordance with its request. For the avoidance of doubt, the preceding sentence shall apply to any Funds that are collective trusts as if they were 1940 Act registered funds. DST shall maintain and store such records for a rolling period of 7 years starting from the date that such records were created, or such longer period as required by applicable Law or its internal policies or until such earlier time as it returns such records to the Fund.

**9.**  **<u>Data Protection</u>** 

9.1. From time to time and in connection with the Services DST may obtain access to certain personal information from the Fund (including, without limitation, Customer Information). Personal information relating to the Fund and its Affiliates, directors, officers, employees, agents, current and prospective Fund shareholders, plan sponsors and plan participants may be processed by DST and its Affiliates. Each Fund consents to the transmission and processing of such information within and outside the United States in accordance with applicable Law.

9.2. DST will notify the Fund without undue delay after becoming aware of any confirmed unauthorized access to, or acquisition, use, loss, destruction, alteration or compromise of Confidential Information (including, without limitation, Customer Information) of the Fund ("Security Breach") maintained on DST's computers, hardware, networks or systems, including any third party data centers, or of any Security Breach occurring at any sub-custodian, agent or service provider of DST, and will provide reasonable assistance to the Fund in its notification of that breach to the relevant supervisory authority and those individuals impacted, as required by applicable Law. DST will not disclose or use Personal Information obtained from or on behalf of the Fund except in accordance with the lawful instructions of the Fund to carry out DST's obligations under, or as otherwise permitted pursuant to the terms of, its agreements with the Fund and to comply with applicable Law.

9.3. Notwithstanding anything to the contrary contained in Section 13.3, DST shall maintain at a location other than its normal location appropriate redundant facilities for operational back up in the event of a power failure, disaster or other interruption. DST shall continuously back up Fund records and shall store the back up in a secure manner at a location other than its normal location, so that, in the event of a power failure, disaster or other interruption at such normal location, the Fund records, will be maintained intact and will enable DST to perform under this Agreement. DST will maintain a comprehensive business continuity plan and will provide an executive summary of such plan upon reasonable request of the Fund. Without limiting the foregoing, DST will test the adequacy of its business continuity plan at least annually and upon request, the Fund may participate in such test. Upon request by the Fund, DST will provide the Fund with a letter assessing the most recent business continuity test results. In the event of a business disruption that materially impacts DST's provision of services under this Agreement, DST will promptly notify the Fund of the disruption and the steps being implemented under the business continuity plan. Upon reasonable request, DST also shall discuss with senior management of the Fund (or personnel authorized by the Fund's senior management) the business continuity/disaster recovery plan of DST and/or provide a high-level presentation summarizing such plan.

9.4. DST shall deliver to the Funds on an annual basis and subject to customary disclaimers and indemnities required by the audit firms that prepare such reports a copy of a report prepared under Statement on SSAE No. 18 Service Organization Controls 1 (SOC 1) Type II, as applicable to DST's application servers, database servers and related systems and equipment upon which Fun Confidential Information, Client Data, and/or Personal Data is maintained.

9.5. DST also agrees to implement commercially reasonable software and other appropriate measures to scan for, detect and prevent the transmission from DST's computers, hardware, networks and systems of any virus, malware, Trojan horse, worm, time bomb, drop dead device, or other malicious code.

**10. <u>DST Property</u>**

10.1 DST Property is and shall remain the property of DST or, when applicable, its Affiliates or suppliers. The Fund shall not acquire any license or right to use, sell, disclose, or otherwise exploit or benefit in any manner from, any DST Property, except as specifically set forth herein. The Fund shall not (unless required by Law) either before or after the termination of this Agreement, disclose to any Person not authorized by DST to receive the same, any information concerning the DST Property and shall use reasonable efforts to prevent any such disclosure. This Agreement shall not be construed as granting DST any ownership rights in the Customer Information.

**11.**  **<u>Confidentiality</u>** 

11.1 Each Party shall not at any time disclose to any Person any Confidential Information concerning the business, affairs, customers, clients or suppliers of the other Party or its Affiliates, except as permitted by this Section 11.

11.2 Each Party may disclose the other Party's Confidential Information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the case of the Fund, to each of its Affiliates, directors, officers, employees and agents ("<u>Fund Representative</u>") who need to know such information for the purpose of carrying out its duties under, or receiving the benefits of or enforcing, this Agreement. The Fund shall ensure compliance by Fund Representatives with Section 11.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of DST, to Fund and each DST Associate, Fund Representative, investor, bank or broker, counterparty or agent thereof, or payment infrastructure provider who needs to know such information for the purpose of carrying out DST's duties under or enforcing this Agreement. DST shall ensure compliance by DST Associates with Section 11.1 but shall not be responsible for such compliance by any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As may be required by applicable law or regulation, or pursuant to any legal or regulatory proceeding, investigation, audit, examination, subpoena, civil investigative demand or other similar process; provided that the disclosing Party (i) where reasonably practicable and to the extent legally permissible, provides the other Party with prompt written notice of the required disclosure so that the other Party may seek a protective order or take other analogous action, (ii) discloses no more of the other Party's Confidential Information than reasonably necessary and (iii) reasonably cooperates with actions of the other Party in seeking to protect its Confidential Information at that other Party's expense.

11.3 Neither Party shall use the other Party's Confidential Information for any purpose other than to perform its obligations under this Agreement. Each Party may retain a record of the other Party's Confidential Information for 7 years or as required by Law.

11.4 DST's ultimate parent company is subject to U.S. federal and state securities Law and may make disclosures that do not contain Confidential Information as it deems necessary to comply with such Law.

11.5 DST shall have no obligation to use Confidential Information of, or data obtained with respect to, any other client of DST in connection with the Services.

11.6 Upon the prior written consent of the Fund, DST shall have the right to identify Fund in connection with its marketing-related activities and in its marketing materials as a client of DST. Upon the prior written consent of DST, Fund shall have the right to identify DST and to describe the Services and the material terms of this Agreement in the offering documents of Fund. This Agreement shall not prohibit DST from using any Fund or Management data (including Client Data) in tracking and reporting on DST's clients generally or making public statements about such subjects as its business or industry; provided that neither Fund nor Management is named in such public statements without its prior written consent. If the Services include the distribution by DST of notices or statements to investors, DST may, upon advance notice to Fund, include reasonable notices describing those terms of this Agreement relating to DST and its liability and the limitations thereon; if investor notices are not sent by DST but rather by Fund or some other Person, Fund will reasonably cooperate with any request by DST to include such notices. The Fund shall not, in any communications with any Person, whether oral or written, make any representations stating or implying that DST is (i) providing valuations with respect to the securities, products or services of Fund, or verifying any valuations, (ii) verifying the existence of any assets in connection with the investments, products or services of Fund, or (iii) acting as a fiduciary, investment advisor, tax preparer or advisor, custodian or bailee with respect to Fund or any of its assets, investors or customers.

11.7 In the event the Fund obtains information from DST or the TA2000 System which is not intended for the Fund, the Fund agrees to (i) immediately, and in no case more than twenty-four (24) hours after discovery thereof, notify DST that unauthorized information has been made available to the Fund; (ii) not knowingly review, disclose, release, or in any way, use such unauthorized information; (iii) provide DST reasonable assistance in retrieving such unauthorized information and/or destroy such unauthorized information; and (iv) deliver to DST a certificate executed by an authorized officer of the Fund certifying that all such unauthorized information in the Fund's possession or control has been delivered to DST or destroyed as required by this provision.

11.8 DST and the Fund acknowledge that their obligation to protect Confidential Information is essential to the business interest of the Fund and DST, respectively, and that the disclosure of such information in breach of this Agreement may cause the Fund or DST immediate, substantial and irreparable harm, the value of which would be difficult to determine. Accordingly, the parties agree that, in addition to any other remedies that may be available in law, equity, or otherwise for the disclosure or use of Confidential Information in breach of this Agreement, the disclosing party shall be entitled to seek and obtain a temporary restraining order, injunctive relief, or other equitable relief against the continuance of such breach.

11.9 DST shall maintain reasonable safeguards for maintaining in confidence any and all Fund Confidential Information, including, without limitation, the policies and procedures described in Section 11.7(ii). DST shall not, at any time, use any such Fund Confidential Information for any purpose other than as specifically authorized by this Agreement, or in writing by the Fund.

11.10 DST has implemented and maintains, and at a minimum agrees to comply with and continue to comply with, at each service location physical and information security and data protection safeguards against the destruction, loss, theft, unauthorized access, unauthorized use, or alteration of the Fund's Confidential Information in the possession of DST that will be no less rigorous than those described in the Information Security Schedule attached hereto as Appendix 2 and from time to time enhanced in accordance with changes in regulatory requirements. DST will, at a minimum, update its policies to remain compliant with applicable regulatory requirements, including, without limitation, the GLBA and the Mass Privacy Act. DST will meet with the Fund, at its request, on an annual basis to discuss information security safeguards. If DST or its agents discover or are notified that someone has violated security relating to the Fund's Confidential Information DST will promptly (a) notify the Fund of such violation, and (b) if the applicable Confidential Information was in the possession or under the control of DST or its agents at the time of such violation, DST will promptly (i) investigate, contain and address the violation, (ii) provide the Funds with information on the steps being taken to reduce the risk of a reoccurrence of such violation, and (iii) without limiting (and subject to) this Agreement, if requested by the Fund based on the facts and circumstances of the incident, provide credit monitoring, or other similar services or remedies as required by applicable law, for a one-year period (or such shorter or longer period required by applicable law) to shareholders of the Fund or others affected by the violation.

11.11 DST shall maintain systems located in DST's facilities that host Fund data or provide services under the Agreement in an environment that is designed to be physically secure and to allow access only to authorized individuals. A secure environment includes the availability of onsite security personnel on a 24 x 7 basis or equivalent means of monitoring locations supporting the delivery of services under the Agreement.

11.12 Section 11 shall not restrict the Fund from sharing information received from DST pursuant to Section 9.2 of this Agreement regarding information security threats including, without limitation, virus, malware, Trojan horse, worm, time bomb, drop dead device, or other malicious code, with third parties for the purpose of evaluating and enhancing the Fund's information security; provided that such third parties are subject to a written agreement with the Fund to keep any such information confidential.

**12.**  **<u>Notices</u>** 

12.1 Except as otherwise provided herein, all notices required or permitted under this Agreement or required by Law shall be effective only if in writing and delivered: (i) personally, (ii) by registered mail, postage prepaid, return receipt requested, (iii) by receipted prepaid courier, (iv) by any confirmed facsimile or (v) by any electronic mail, to the relevant address or number listed below (or to such other address or number as a Party shall hereafter provide by notice to the other Parties). Notices shall be deemed effective when received by the Party to whom notice is required to be given.

**If to DST:**

DST Asset Manager Solutions, Inc.

333 W. 11<sup>th</sup> Street, 5<sup>th</sup> Floor

Kansas City, MO 64105

Attention: Legal Department

**<br> If to the Fund:**

[Name of Fund]

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15237

Attention: President

With a copy to:

Federated Investors, Inc.

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15222

Attention: General Counsel

**13.**  **<u>Miscellaneous</u>** 

13.1 <u>Amendment; Modification</u>. This Agreement may not be amended or modified except in writing signed by an authorized representative of each Party. No DST Associate has authority to bind DST in any way to any oral covenant, promise, representation or warranty concerning this Agreement, the Services or otherwise.

13.2 <u>Assignment</u>. Neither this Agreement nor any rights under this Agreement may be assigned or otherwise transferred by the Fund, in whole or in part, whether directly or by operation of Law, without the prior written consent of DST. DST may assign or otherwise transfer this Agreement: (i) to a successor in the event of a change in control of DST, (ii) to an Affiliate or (iii) in connection with an assignment or other transfer of a material part of DST's business, provided that the DST gives the Fund sixty (60) days' prior written notice of such assignment or transfer and such assignment or transfer does not impair the provision of services under this Agreement in any material respect, and the assignee or transferee agrees to be bound by all terms of this Agreement in place of DST. If DST assigns or transfers this Agreement pursuant to this Section 13.2 to an entity that is not an Affiliate of DST without the written consent of the Fund, the Fund shall have the option, exercisable for ninety (90) days after receiving written notice of such assignment or transfer (or for such longer period as may be mutually agreed by the Parties), to terminate this Agreement. Any attempted delegation, transfer or assignment prohibited by this Agreement shall be null and void. An acquisition, merger, reorganization, or change of control of a Fund resulting in the Fund as the surviving entity shall not be deemed to cause an assignment hereunder.

13.3 <u>Choice of Law; Choice of Forum</u>. This Agreement shall be interpreted in accordance with and governed by the Law of the Commonwealth of Massachusetts. The courts of the Commonwealth of Massachusetts and the United States District Court for the Commonwealth of Massachusetts shall have exclusive jurisdiction to settle any Claim. Each Party submits to the exclusive jurisdiction of such courts and waives to the fullest extent permitted by Law all rights to a trial by jury.

13.4 <u>Counterparts; Signatures</u>. This Agreement may be executed in counterparts, each of which when so executed will be deemed to be an original. Such counterparts together will constitute one agreement. Signatures may be exchanged via facsimile or electronic mail and shall be binding to the same extent as if original signatures were exchanged.

13.5 <u>Entire Agreement</u>. This Agreement (including any schedules, attachments, amendments and addenda hereto) contains the entire agreement of the Parties with respect to the subject matter hereof and supersedes all previous communications, representations, understandings and agreements, either oral or written, between the Parties with respect thereto. This Agreement sets out the entire liability of DST Associates related to the Services and the subject matter of this Agreement, and no DST Associate shall have any liability to the Fund or any other Person for, and the Fund hereby waives to the fullest extent permitted by applicable law recourse under, tort, misrepresentation or any other legal theory other than contract or equity.

13.6 <u>Force Majeure</u>. A Party will not be responsible for any Losses of property in their possession or for any failure to fulfill its duties or obligations hereunder if such Loss or failure is caused, directly or indirectly, by war, terrorist action, riot, rebellion, acts of God, strike, power failure, computer error or failure, delay or breakdown in communications or electronic transmission systems, or other analogous events reasonably beyond its control. DST shall use commercially reasonable efforts to minimize the effects on the Services of any such event. Nothing in this Section 13.6 shall relieve DST of its obligations set forth in Section 9.3.

13.7 <u>Non-Exclusivity</u>. The duties and obligations of DST hereunder shall not preclude DST from providing services of a comparable or different nature to any other Person and to receive economic or other benefits in connection therewith. The Fund understands that DST may have commercial relationships with Data Suppliers and other providers of technology, data or other services that are used by the Fund.

13.8 <u>No Partnership</u>. Nothing in this Agreement is intended to, or shall be deemed to, constitute a partnership or joint venture of any kind between or among any of the Parties.

13.9 <u>No Solicitation</u>. During the term of this Agreement and for a period of 12 months thereafter, the Fund will not directly or indirectly solicit the services of, or otherwise attempt to employ or engage any employee of DST or its Affiliates without the consent of DST; provided, however, that the foregoing shall not prevent the Fund from soliciting employees through general advertising not targeted specifically at any or all DST Associates. If the Fund employs or engages any DST Associate during the term of this Agreement or the period of 12 months thereafter in contravention of this Section 13.9, the Fund agrees to pay for any fees and expenses (including recruiters' fees) incurred by DST or its Affiliates in hiring replacement personnel as well as any other remedies available to DST.

13.9 <u>No Warranties</u>. Except as expressly listed herein, DST makes no warranties, whether express, implied, contractual or statutory with respect to the Services. DST disclaims all implied warranties of merchantability and fitness for a particular purpose with respect to the Services. All warranties, conditions and other terms implied by Law are, to the fullest extent permitted by Law, excluded from this Agreement.

13.10 <u>Severance</u>. If any provision (or part thereof) of this Agreement is or becomes invalid, illegal or unenforceable, the provision shall be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not practical, the relevant provision shall be deemed deleted. Any such modification or deletion of a provision shall not affect the validity, legality and enforceability of the rest of this Agreement. If a Party gives notice to another Party of the possibility that any provision of this Agreement is invalid, illegal or unenforceable, the Parties shall negotiate to amend such provision so that, as amended, it is valid, legal and enforceable and achieves the intended commercial result of the original provision.

13.11 <u>Testimony</u>. If DST is required by a third party subpoena or otherwise, to produce documents, testify or provide other evidence regarding the Services, this Agreement or the operations of the Fund in any Action to which the Fund is a party or otherwise related to the Fund, the Fund shall reimburse DST for all costs and expenses, including the time of its professional staff at DST's standard rates and the cost of legal representation, that DST reasonably incurs in connection therewith.

13.12 <u>Third Party Beneficiaries</u>. This Agreement is entered into for the sole and exclusive benefit of the Parties and will not be interpreted in such a manner as to give rise to or create any rights or benefits of or for any other Person.

13.13 <u>Waiver</u>. No failure or delay by a Party to exercise any right or remedy provided under this Agreement or by Law shall constitute a waiver of that or any other right or remedy, nor shall it prevent or restrict the further exercise of that or any other right or remedy. No exercise (or partial exercise) of such right or remedy shall prevent or restrict the further exercise of that or any other right or remedy.

13.14 <u>Cooperation with Respect to Examinations and Audits</u>. DST shall provide assistance to and cooperate with the Fund with respect to any federal or state government-directed examinations and with the Fund's internal or external auditors in connection with any Fund-directed audits. For purposes of such examinations and audits, at the request of the Fund, DST will use all reasonable efforts to make available, during normal business hours of DST's facilities, all records and Policies solely as they directly pertain to DST's activities under or pursuant to this Agreement. Such audits and examinations shall be conducted at the Fund's expense and in a manner that will not interfere with DST's normal and customary conduct of its business activities. To the extent practicable, the Fund shall make every effort to coordinate Fund-directed audits so as to minimize the inconvenience to DST and, except as otherwise agreed by the parties, no more frequently than once a year. In connection with any Fund-directed audit, the Fund shall not physically access DST's systems and shall not conduct any testing on such systems. With respect to Fund-directed audits, DST shall provide such assistance in accordance with reasonable procedures and at reasonable frequencies, and the Fund shall provide reasonable advance notice of not less than three (3) business days to DST of such audits, and to the extent possible, of such examinations. DST may require any persons seeking access to its facilities to provide reasonable evidence of their authority. With respect to Fund- directed audits, DST may require such persons to execute a confidentiality agreement before granting access. On an annual basis, DST will provide the Fund with copies of its SOC 1 report.

 

*[Signatures appear on next page.]*

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in their names and on their behalf by and through their duly authorized officers, as of the day and year first above written.

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; **DST ASSET MANAGER SOLUTIONS, INC.** | &nbsp;&nbsp; **DST ASSET MANAGER SOLUTIONS, INC.** | **BY EACH OF THE FEDERATED FUNDS LISTED ON SCHEDULE A (OTHER THAN COLLECTIVE TRUSTS), SEVERALLY AND NOT JOINTLY** | **BY EACH OF THE FEDERATED FUNDS LISTED ON SCHEDULE A (OTHER THAN COLLECTIVE TRUSTS), SEVERALLY AND NOT JOINTLY** |
| &nbsp;&nbsp; <br> By: | /s/Rahul Kanwar | &nbsp;&nbsp; <br> By: | /s/Peter J. Germain |
| &nbsp;&nbsp; <br> Name: | Rahul Kanwar | &nbsp;&nbsp; <br> Name: | Peter J. Germain |
| &nbsp;&nbsp; <br> Title: | President/COO | &nbsp;&nbsp; <br> Title: | Secretary |

---

---

| | |
|:---|:---|
| **BY EACH OF THE FEDERATED FUNDS THAT ARE COLLECTIVE TRUSTS, SEVERALLY AND NOT JOINTLY** | **BY EACH OF THE FEDERATED FUNDS THAT ARE COLLECTIVE TRUSTS, SEVERALLY AND NOT JOINTLY** |
| &nbsp;&nbsp; <br> By: | /s/Richard A. Novak |
| &nbsp;&nbsp; <br> Name: | Richard A. Novak |
| &nbsp;&nbsp; <br> Title: | President |

---

**Schedule A**

**Funds**

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;Date added to the contract | &nbsp;&nbsp;REGISTRANT NAME | &nbsp;&nbsp;SERIES NAME<br> (if applicable) | &nbsp;&nbsp;Transfer Agent Fund Number | &nbsp;&nbsp;Class |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Adjustable Rate Securities Trust |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES ADJUSTABLE RATE FUND | &nbsp;&nbsp;96 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES ADJUSTABLE RATE FUND | &nbsp;&nbsp;325 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;8/31/2017 | &nbsp;&nbsp;Federated Hermes Adviser Series |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EMERGING MARKETS EQUITY FUND | &nbsp;&nbsp;813 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EMERGING MARKETS EQUITY FUND | &nbsp;&nbsp;818 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CONSERV MICROSHORT | &nbsp;&nbsp;564 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CONSERV MUNI MICRO | &nbsp;&nbsp;567 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL EQUITY FUND | &nbsp;&nbsp;934 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL EQUITY FUND | &nbsp;&nbsp;935 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL SMALL CAP FUND | &nbsp;&nbsp;939 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL SMALL CAP FUND | &nbsp;&nbsp;944 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL DEVELOPED EQUITY FUND | &nbsp;&nbsp;443 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL DEVELOPED EQUITY FUND | &nbsp;&nbsp;444 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SDG ENGAGEMENT EQUITY FUND | &nbsp;&nbsp;431 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SDG ENGAGEMENT EQUITY FUND | &nbsp;&nbsp;441 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SDG ENGAGEMENT EQUITY FUND | &nbsp;&nbsp;442 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SDG ENGAGEMENT HY CREDIT FUND | &nbsp;&nbsp;669 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SDG ENGAGEMENT HY CREDIT FUND | &nbsp;&nbsp;672 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL EQUITY FUND | &nbsp;&nbsp;713 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL EQUITY FUND | &nbsp;&nbsp;714 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL EQUITY FUND | &nbsp;&nbsp;717 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL EQUITY FUND | &nbsp;&nbsp;718 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL GROWTH FUND | &nbsp;&nbsp;728 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL GROWTH FUND | &nbsp;&nbsp;778 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP VALUE FUND | &nbsp;&nbsp;426 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP VALUE FUND | &nbsp;&nbsp;428 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP VALUE FUND | &nbsp;&nbsp;429 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP VALUE FUND | &nbsp;&nbsp;419 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP VALUE FUND | &nbsp;&nbsp;420 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP VALUE FUND | &nbsp;&nbsp;422 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP VALUE FUND | &nbsp;&nbsp;425 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES U.S. SMID FUND | &nbsp;&nbsp;165 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES U.S. SMID FUND | &nbsp;&nbsp;187 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT MARKET NEUTRAL FUND | &nbsp;&nbsp;299 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT MARKET NEUTRAL FUND | &nbsp;&nbsp;315 | &nbsp;&nbsp;IS |
|  | &nbsp;&nbsp;Federated Hermes Core Trust: |  |  |  |
| &nbsp;&nbsp;3/21/2016 |  | &nbsp;&nbsp;EMERGING MARKETS CORE FUND | &nbsp;&nbsp;812 |  |
| &nbsp;&nbsp;8/16/2010 |  | &nbsp;&nbsp;BANK LOAN CORE FUND | &nbsp;&nbsp;850 |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;MORTGAGE CORE FUND | &nbsp;&nbsp;938 |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;HIGH YIELD BOND CORE FUND | &nbsp;&nbsp;871 |  |
|  | &nbsp;&nbsp;Federated Hermes Core Trust III: |  |  |  |
| &nbsp;&nbsp;3/1/2008 |  | &nbsp;&nbsp;PROJECT AND TRADE FINANCE CORE FUND | &nbsp;&nbsp;148 |  |
|  | &nbsp;&nbsp;Federated Hermes Equity Funds: |  |  |  |
| &nbsp;&nbsp;12/1/2008 |  | &nbsp;&nbsp;FEDERATED HERMES CLOVER SMALL VALUE FUND | &nbsp;&nbsp;639 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CLOVER SMALL VALUE FUND | &nbsp;&nbsp;658 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CLOVER SMALL VALUE FUND | &nbsp;&nbsp;659 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CLOVER SMALL VALUE FUND | &nbsp;&nbsp;670 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CLOVER SMALL VALUE FUND | &nbsp;&nbsp;539 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;3/1/2008 |  | &nbsp;&nbsp;FEDERATED HERMES INTL STRATEGIC VAL DIV FUND | &nbsp;&nbsp;432 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTL STRATEGIC VAL DIV FUND | &nbsp;&nbsp;433 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTL STRATEGIC VAL DIV FUND | &nbsp;&nbsp;434 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTL STRATEGIC VAL DIV FUND | &nbsp;&nbsp;466 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN FUND | &nbsp;&nbsp;66 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN FUND | &nbsp;&nbsp;67 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN FUND | &nbsp;&nbsp;70 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN FUND | &nbsp;&nbsp;74 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN FUND | &nbsp;&nbsp;123 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;9/17/2007 |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN LARGE CAP FUND | &nbsp;&nbsp;352 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN LARGE CAP FUND | &nbsp;&nbsp;353 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN LARGE CAP FUND | &nbsp;&nbsp;355 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN LARGE CAP FUND | &nbsp;&nbsp;354 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN LARGE CAP FUND | &nbsp;&nbsp;401 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN SMALL CAP FUND | &nbsp;&nbsp;163 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN SMALL CAP FUND | &nbsp;&nbsp;146 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN SMALL CAP FUND | &nbsp;&nbsp;757 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN SMALL CAP FUND | &nbsp;&nbsp;758 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN SMALL CAP FUND | &nbsp;&nbsp;759 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN SMALL CAP FUND | &nbsp;&nbsp;154 | &nbsp;&nbsp;R |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES MDT MID CAP GROWTH FUND | &nbsp;&nbsp;677 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT MID CAP GROWTH FUND | &nbsp;&nbsp;650 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT MID CAP GROWTH FUND | &nbsp;&nbsp;656 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT MID CAP GROWTH FUND | &nbsp;&nbsp;679 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;9/1/2008 |  | &nbsp;&nbsp;FEDERATED HERMES PRUDENT BEAR FUND | &nbsp;&nbsp;409 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRUDENT BEAR FUND | &nbsp;&nbsp;415 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRUDENT BEAR FUND | &nbsp;&nbsp;418 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;12/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC VALUE DIVIDEND | &nbsp;&nbsp;661 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC VALUE DIVIDEND | &nbsp;&nbsp;663 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC VALUE DIVIDEND | &nbsp;&nbsp;662 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC VALUE DIVIDEND | &nbsp;&nbsp;251 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Equity Income Fund Inc. |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EQUITY INCOME FUND | &nbsp;&nbsp;34 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EQUITY INCOME FUND | &nbsp;&nbsp;629 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EQUITY INCOME FUND | &nbsp;&nbsp;241 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EQUITY INCOME FUND | &nbsp;&nbsp;326 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EQUITY INCOME FUND | &nbsp;&nbsp;849 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EQUITY INCOME FUND | &nbsp;&nbsp;304 | &nbsp;&nbsp;F |
|  | &nbsp;&nbsp;Federated Hermes Fixed Income Securities, Inc.: |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES MUNI ULTRASHORT FUND | &nbsp;&nbsp;253 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI ULTRASHORT FUND | &nbsp;&nbsp;254 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI ULTRASHORT FUND | &nbsp;&nbsp;230 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC INCOME FUND | &nbsp;&nbsp;652 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC INCOME FUND | &nbsp;&nbsp;382 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC INCOME FUND | &nbsp;&nbsp;383 | &nbsp;&nbsp;F |
|  |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC INCOME FUND | &nbsp;&nbsp;381 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC INCOME FUND | &nbsp;&nbsp;414 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC INCOME FUND | &nbsp;&nbsp;653 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;6/1/2008 | &nbsp;&nbsp;Federated Hermes Global Allocation Fund |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL ALLOCATION FUND | &nbsp;&nbsp;373 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL ALLOCATION FUND | &nbsp;&nbsp;608 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL ALLOCATION FUND | &nbsp;&nbsp;894 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL ALLOCATION FUND | &nbsp;&nbsp;232 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL ALLOCATION FUND | &nbsp;&nbsp;11 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL ALLOCATION FUND | &nbsp;&nbsp;879 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Government Income Securities, Inc. |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOV INCOME SECURITIES | &nbsp;&nbsp;166 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOV INCOME SECURITIES | &nbsp;&nbsp;171 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOV INCOME SECURITIES | &nbsp;&nbsp;21 | &nbsp;&nbsp;F |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOV INCOME SECURITIES | &nbsp;&nbsp;615 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Government Income Trust |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT INCOME FUND | &nbsp;&nbsp;36 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT INCOME FUND | &nbsp;&nbsp;102 | &nbsp;&nbsp;ss |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes High Income Bond Fund, Inc. |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES HIGH INCOME BOND FUND | &nbsp;&nbsp;630 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES HIGH INCOME BOND FUND | &nbsp;&nbsp;492 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES HIGH INCOME BOND FUND | &nbsp;&nbsp;242 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES HIGH INCOME BOND FUND | &nbsp;&nbsp;317 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES HIGH INCOME BOND FUND | &nbsp;&nbsp;491 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes High Yield Trust: |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES OPPORTNSTC HI-YLD BND | &nbsp;&nbsp;77 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES OPPORTNSTC HI-YLD BND | &nbsp;&nbsp;113 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES OPPORTNSTC HI-YLD BND | &nbsp;&nbsp;120 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES OPPORTNSTC HI-YLD BND | &nbsp;&nbsp;430 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES OPPORTNSTC HI-YLD BND | &nbsp;&nbsp;38 | &nbsp;&nbsp;ss |
|  | &nbsp;&nbsp;Federated Hermes Income Securities Trust: |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL INCOME FUND | &nbsp;&nbsp;312 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL INCOME FUND | &nbsp;&nbsp;631 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL INCOME FUND | &nbsp;&nbsp;244 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL INCOME FUND | &nbsp;&nbsp;374 | &nbsp;&nbsp;F |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL INCOME FUND | &nbsp;&nbsp;300 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL INCOME FUND | &nbsp;&nbsp;830 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;9/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES FLTG RATE STR INCOME FUND | &nbsp;&nbsp;701 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES FLTG RATE STR INCOME FUND | &nbsp;&nbsp;693 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES FLTG RATE STR INCOME FUND | &nbsp;&nbsp;687 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES FLTG RATE STR INCOME FUND | &nbsp;&nbsp;188 | &nbsp;&nbsp;A1 |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES FUND U.S. GOV SECURITIES | &nbsp;&nbsp;601 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES FUND U.S. GOV SECURITIES | &nbsp;&nbsp;238 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES FUND U.S. GOV SECURITIES | &nbsp;&nbsp;309 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES FUND U.S. GOV SECURITIES | &nbsp;&nbsp;614 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES INTERM CORP BOND FUND | &nbsp;&nbsp;303 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERM CORP BOND FUND | &nbsp;&nbsp;348 | &nbsp;&nbsp;ss |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES MUNI & STOCK ADVT FUND | &nbsp;&nbsp;888 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI & STOCK ADVT FUND | &nbsp;&nbsp;887 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI & STOCK ADVT FUND | &nbsp;&nbsp;889 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI & STOCK ADVT FUND | &nbsp;&nbsp;901 | &nbsp;&nbsp;F |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI & STOCK ADVT FUND | &nbsp;&nbsp;876 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;12/1/2005 |  | &nbsp;&nbsp;FEDERATED HERMES INFL PROTECTED SEC FD | &nbsp;&nbsp;183 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INFL PROTECTED SEC FD | &nbsp;&nbsp;184 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INFL PROTECTED SEC FD | &nbsp;&nbsp;185 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;***FEDERATED HERMES INFL PROTECTED SEC FD*** | &nbsp;&nbsp;***327*** | &nbsp;&nbsp;***R6*** |
| &nbsp;&nbsp;7/18/2004 |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-TERM INCOME FUND | &nbsp;&nbsp;292 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-TERM INCOME FUND | &nbsp;&nbsp;65 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-TERM INCOME FUND | &nbsp;&nbsp;638 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-TERM INCOME FUND | &nbsp;&nbsp;607 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-TERM INCOME FUND | &nbsp;&nbsp;579 | &nbsp;&nbsp;A2 |
|  | &nbsp;&nbsp;Federated Hermes Index Trust: |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES MAX-CAP INDEX FUND | &nbsp;&nbsp;39 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MAX-CAP INDEX FUND | &nbsp;&nbsp;895 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MAX-CAP INDEX FUND | &nbsp;&nbsp;281 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MAX-CAP INDEX FUND | &nbsp;&nbsp;867 | &nbsp;&nbsp;C |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES MID-CAP INDEX FUND | &nbsp;&nbsp;156 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MID-CAP INDEX FUND | &nbsp;&nbsp;153 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MID-CAP INDEX FUND | &nbsp;&nbsp;151 | &nbsp;&nbsp;ss |
|  | &nbsp;&nbsp;Federated Hermes Institutional Trust |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES GOV ULTRASHORT DUR FUND | &nbsp;&nbsp;969 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOV ULTRASHORT DUR FUND | &nbsp;&nbsp;891 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOV ULTRASHORT DUR FUND | &nbsp;&nbsp;840 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOV ULTRASHORT DUR FUND | &nbsp;&nbsp;626 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES INSTL HIGH YIELD BOND FUND | &nbsp;&nbsp;900 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSTL HIGH YIELD BOND FUND | &nbsp;&nbsp;221 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;6/1/2005 |  | &nbsp;&nbsp;FEDERATED HERMES SH-INT TOTAL RETURN BOND | &nbsp;&nbsp;114 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SH-INT TOTAL RETURN BOND | &nbsp;&nbsp;63 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SH-INT TOTAL RETURN BOND | &nbsp;&nbsp;107 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SH-INT TOTAL RETURN BOND | &nbsp;&nbsp;127 | &nbsp;&nbsp;R6 |
|  | &nbsp;&nbsp;Federated Hermes Insurance Series |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES MANAGED VOLATILITY FUND II | &nbsp;&nbsp;333 | &nbsp;&nbsp;P |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MANAGED VOLATILITY FUND II | &nbsp;&nbsp;403 | &nbsp;&nbsp;S |
|  |  | &nbsp;&nbsp;FEDERATED HERMES FUND U.S. GOV SECURITIES II | &nbsp;&nbsp;334 | &nbsp;&nbsp;-- |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES HIGH INCOME BOND II | &nbsp;&nbsp;250 | &nbsp;&nbsp;S |
|  |  | &nbsp;&nbsp;FEDERATED HERMES HIGH INCOME BOND II | &nbsp;&nbsp;336 | &nbsp;&nbsp;p |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN FUND II | &nbsp;&nbsp;953 | &nbsp;&nbsp;p |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN FUND II | &nbsp;&nbsp;957 | &nbsp;&nbsp;s |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT MONEY FUND II | &nbsp;&nbsp;330 | &nbsp;&nbsp;s |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT MONEY FUND II | &nbsp;&nbsp;402 | &nbsp;&nbsp;p |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES QUALITY BOND II | &nbsp;&nbsp;921 | &nbsp;&nbsp;p |
|  |  | &nbsp;&nbsp;FEDERATED HERMES QUALITY BOND II | &nbsp;&nbsp;929 | &nbsp;&nbsp;s |
|  | &nbsp;&nbsp;Federated Hermes International Series, Inc.: |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL TOTAL RETURN BOND FD | &nbsp;&nbsp;152 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL TOTAL RETURN BOND FD | &nbsp;&nbsp;240 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL TOTAL RETURN BOND FD | &nbsp;&nbsp;316 | &nbsp;&nbsp;A |
|  | &nbsp;&nbsp;Federated Hermes Investment Series Funds, Inc.: |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CORPORATE BOND FUND | &nbsp;&nbsp;641 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CORPORATE BOND FUND | &nbsp;&nbsp;642 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CORPORATE BOND FUND | &nbsp;&nbsp;643 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CORPORATE BOND FUND | &nbsp;&nbsp;655 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CORPORATE BOND FUND | &nbsp;&nbsp;671 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CORPORATE BOND FUND | &nbsp;&nbsp;198 | &nbsp;&nbsp;F |
|  | &nbsp;&nbsp;Federated Hermes Managed Pool Series: |  |  |  |
| &nbsp;&nbsp;12/1/2005 |  | &nbsp;&nbsp;FEDERATED HERMES CORPORATE BOND STRATEGY PORTFOLIO | &nbsp;&nbsp;157 |  |
| &nbsp;&nbsp;12/1/2005 |  | &nbsp;&nbsp;FEDERATED HERMES HIGH-YIELD STRATEGY PORTFOLIO | &nbsp;&nbsp;744 |  |
| &nbsp;&nbsp;12/1/2005 |  | &nbsp;&nbsp;FEDERATED HERMES INTL BOND STRATEGY PORT | &nbsp;&nbsp;742 |  |
| &nbsp;&nbsp;12/1/2014 |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL DIV STRATEGY | &nbsp;&nbsp;569 |  |
| &nbsp;&nbsp;12/1/2005 |  | &nbsp;&nbsp;FEDERATED HERMES MORTGAGE STRATEGY PORT | &nbsp;&nbsp;743 |  |
|  | &nbsp;&nbsp;Federated Hermes MDT Series: |  |  |  |
| &nbsp;&nbsp;7/31/2006 |  | &nbsp;&nbsp;FEDERATED HERMES MDT ALL CAP CORE FUND | &nbsp;&nbsp;210 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT ALL CAP CORE FUND | &nbsp;&nbsp;224 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT ALL CAP CORE FUND | &nbsp;&nbsp;226 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT ALL CAP CORE FUND | &nbsp;&nbsp;233 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/31/2006 |  | &nbsp;&nbsp;FEDERATED HERMES MDT BALANCED FUND | &nbsp;&nbsp;285 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT BALANCED FUND | &nbsp;&nbsp;296 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT BALANCED FUND | &nbsp;&nbsp;297 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT BALANCED FUND | &nbsp;&nbsp;314 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/31/2006 |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP GROWTH FUND | &nbsp;&nbsp;265 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP GROWTH FUND | &nbsp;&nbsp;271 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP GROWTH FUND | &nbsp;&nbsp;267 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP GROWTH FUND | &nbsp;&nbsp;269 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/31/2006 |  | &nbsp;&nbsp;FEDERATED HERMES MDT SMALL CAP CORE FUND | &nbsp;&nbsp;237 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT SMALL CAP CORE FUND | &nbsp;&nbsp;245 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT SMALL CAP CORE FUND | &nbsp;&nbsp;255 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT SMALL CAP CORE FUND | &nbsp;&nbsp;223 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/31/2006 |  | &nbsp;&nbsp;FEDERATED HERMES MDT SMALL CAP GROWTH FUND | &nbsp;&nbsp;282 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT SMALL CAP GROWTH FUND | &nbsp;&nbsp;283 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT SMALL CAP GROWTH FUND | &nbsp;&nbsp;284 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT SMALL CAP GROWTH FUND | &nbsp;&nbsp;231 | &nbsp;&nbsp;R6 |
|  | &nbsp;&nbsp;Federated Hermes Municipal Bond Fund, Inc: |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL BOND FUND INC. | &nbsp;&nbsp;141 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL BOND FUND INC. | &nbsp;&nbsp;375 | &nbsp;&nbsp;F |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL BOND FUND INC. | &nbsp;&nbsp;602 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL BOND FUND INC. | &nbsp;&nbsp;243 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL BOND FUND INC. | &nbsp;&nbsp;384 | &nbsp;&nbsp;A |
|  | &nbsp;&nbsp;Federated Hermes Municipal Securities Income Trust: |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES MICHIGAN INTERM MUNICIPAL FUND | &nbsp;&nbsp;145 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MICHIGAN INTERM MUNICIPAL FUND | &nbsp;&nbsp;622 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;6/1/2006 |  | &nbsp;&nbsp;FEDERATED HERMES MUNI HIGH YIELD ADVT FUND | &nbsp;&nbsp;310 | &nbsp;&nbsp;F |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI HIGH YIELD ADVT FUND | &nbsp;&nbsp;214 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI HIGH YIELD ADVT FUND | &nbsp;&nbsp;167 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI HIGH YIELD ADVT FUND | &nbsp;&nbsp;170 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI HIGH YIELD ADVT FUND | &nbsp;&nbsp;380 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES OHIO MUNI INCOME | &nbsp;&nbsp;164 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES OHIO MUNI INCOME | &nbsp;&nbsp;313 | &nbsp;&nbsp;F |
|  |  | &nbsp;&nbsp;FEDERATED HERMES OHIO MUNI INCOME | &nbsp;&nbsp;623 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES PENNSYLVANIA MUNI INCOME | &nbsp;&nbsp;311 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PENNSYLVANIA MUNI INCOME | &nbsp;&nbsp;673 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Short- Intermediate Duration Municipal Trust |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SH-INT MUNI FUND | &nbsp;&nbsp;291 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SH-INT MUNI FUND | &nbsp;&nbsp;24 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SH-INT MUNI FUND | &nbsp;&nbsp;289 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SH-INT MUNI FUND | &nbsp;&nbsp;84 | &nbsp;&nbsp;A2 |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Total Return Government Bond Fund |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN GOVT BOND FUND | &nbsp;&nbsp;234 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN GOVT BOND FUND | &nbsp;&nbsp;648 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN GOVT BOND FUND | &nbsp;&nbsp;647 | &nbsp;&nbsp;IS |
|  | &nbsp;&nbsp;Federated Hermes Total Return Series, Inc.: |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES CORE BOND FUND | &nbsp;&nbsp;835 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CORE BOND FUND | &nbsp;&nbsp;837 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CORE BOND FUND | &nbsp;&nbsp;890 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN BOND FUND | &nbsp;&nbsp;328 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN BOND FUND | &nbsp;&nbsp;288 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN BOND FUND | &nbsp;&nbsp;893 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN BOND FUND | &nbsp;&nbsp;225 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN BOND FUND | &nbsp;&nbsp;404 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN BOND FUND | &nbsp;&nbsp;405 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN BOND FUND | &nbsp;&nbsp;406 | &nbsp;&nbsp;C |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES ULTRASHORT BOND FUND | &nbsp;&nbsp;218 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES ULTRASHORT BOND FUND | &nbsp;&nbsp;838 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES ULTRASHORT BOND FUND | &nbsp;&nbsp;108 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES ULTRASHORT BOND FUND | &nbsp;&nbsp;344 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Short-Term Government Trust |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-TERM GOV'T FUND | &nbsp;&nbsp;100 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-TERM GOV'T FUND | &nbsp;&nbsp;79 | &nbsp;&nbsp;y |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-TERM GOV'T FUND | &nbsp;&nbsp;9 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Short-Intermediate Government Trust |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-INTERMEDIATE GOV'T FUND | &nbsp;&nbsp;192 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-INTERMEDIATE GOV'T FUND | &nbsp;&nbsp;896 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-INTERMEDIATE GOV'T FUND | &nbsp;&nbsp;47 | &nbsp;&nbsp;IS |
|  | &nbsp;&nbsp;Federated Hermes World Investment Series, Inc.: |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES EMERGING MARKET DEBT FUND | &nbsp;&nbsp;831 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EMERGING MARKET DEBT FUND | &nbsp;&nbsp;609 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EMERGING MARKET DEBT FUND | &nbsp;&nbsp;611 | &nbsp;&nbsp;C |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL LEADERS FUND | &nbsp;&nbsp;103 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL LEADERS FUND | &nbsp;&nbsp;104 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL LEADERS FUND | &nbsp;&nbsp;105 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL LEADERS FUND | &nbsp;&nbsp;119 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL LEADERS FUND | &nbsp;&nbsp;106 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL LEADERS FUND | &nbsp;&nbsp;110 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES INTL SMALL-MID COMPANY FUND | &nbsp;&nbsp;695 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTL SMALL-MID COMPANY FUND | &nbsp;&nbsp;697 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTL SMALL-MID COMPANY FUND | &nbsp;&nbsp;682 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Intermediate Municipal Trust |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERMEDIATE MUNI FUND | &nbsp;&nbsp;78 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERMEDIATE MUNI FUND | &nbsp;&nbsp;739 | &nbsp;&nbsp;IS |
|  | &nbsp;&nbsp;Federated Hermes Money Market Obligations Trust: |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES CALIFORNIA MUNI CASH TRUST | &nbsp;&nbsp;80 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CALIFORNIA MUNI CASH TRUST | &nbsp;&nbsp;800 | &nbsp;&nbsp;ws |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CALIFORNIA MUNI CASH TRUST | &nbsp;&nbsp;280 | &nbsp;&nbsp;CII |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CALIFORNIA MUNI CASH TRUST | &nbsp;&nbsp;809 | &nbsp;&nbsp;CAP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CALIFORNIA MUNI CASH TRUST | &nbsp;&nbsp;810 | &nbsp;&nbsp;cs |
| &nbsp;&nbsp;12/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL RESERVES FUND | &nbsp;&nbsp;806 |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;386 | &nbsp;&nbsp;cs |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;385 | &nbsp;&nbsp;CII |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;805 | &nbsp;&nbsp;CAP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;158 | &nbsp;&nbsp;ADM |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;117 | &nbsp;&nbsp;PRM |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;5 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;703 | &nbsp;&nbsp;TR |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;395 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;7 | &nbsp;&nbsp;SEL |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;484 | &nbsp;&nbsp;AVR |
|  |  | &nbsp;&nbsp;***FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND*** | &nbsp;&nbsp;***707*** | &nbsp;&nbsp;***SDG*** |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES GOVT OBLIGATIONS TAX-MGD FD | &nbsp;&nbsp;613 | &nbsp;&nbsp;AS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVT OBLIGATIONS TAX-MGD FD | &nbsp;&nbsp;636 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVT OBLIGATIONS TAX-MGD FD | &nbsp;&nbsp;637 | &nbsp;&nbsp;ss |
| &nbsp;&nbsp;12/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT RESERVES FUND | &nbsp;&nbsp;970 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT RESERVES FUND | &nbsp;&nbsp;971 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT RESERVES FUND | &nbsp;&nbsp;972 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT RESERVES FUND | &nbsp;&nbsp;807 | &nbsp;&nbsp;p |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT RESERVES FUND | &nbsp;&nbsp;973 | &nbsp;&nbsp;F |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL MMKT MGMT | &nbsp;&nbsp;136 | &nbsp;&nbsp;CAP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL MMKT MGMT | &nbsp;&nbsp;349 | &nbsp;&nbsp;EAG |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL MMKT MGMT | &nbsp;&nbsp;58 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL MMKT MGMT | &nbsp;&nbsp;219 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSITUTIONAL PRIME OBLIGATIONS FUND | &nbsp;&nbsp;10 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSITUTIONAL PRIME OBLIGATIONS FUND | &nbsp;&nbsp;143 | &nbsp;&nbsp;CAP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSITUTIONAL PRIME OBLIGATIONS FUND | &nbsp;&nbsp;396 | &nbsp;&nbsp;ss |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL OBLIGATIONS FUND | &nbsp;&nbsp;858 | &nbsp;&nbsp;CAP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL OBLIGATIONS FUND | &nbsp;&nbsp;821 | &nbsp;&nbsp;cs |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL OBLIGATIONS FUND | &nbsp;&nbsp;820 | &nbsp;&nbsp;CII |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL OBLIGATIONS FUND | &nbsp;&nbsp;852 | &nbsp;&nbsp;ws |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL OBLIGATIONS FUND | &nbsp;&nbsp;839 | &nbsp;&nbsp;IV |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL OBLIGATIONS FUND | &nbsp;&nbsp;855 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL OBLIGATIONS FUND | &nbsp;&nbsp;833 | &nbsp;&nbsp;AS |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES NEW YORK MUNI CASH TRUST | &nbsp;&nbsp;878 | &nbsp;&nbsp;cs |
|  |  | &nbsp;&nbsp;FEDERATED HERMES NEW YORK MUNI CASH TRUST | &nbsp;&nbsp;12 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES NEW YORK MUNI CASH TRUST | &nbsp;&nbsp;825 | &nbsp;&nbsp;ws |
|  |  | &nbsp;&nbsp;FEDERATED HERMES NEW YORK MUNI CASH TRUST | &nbsp;&nbsp;111 | &nbsp;&nbsp;CII |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;857 | &nbsp;&nbsp;CAP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;911 | &nbsp;&nbsp;CII |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;851 | &nbsp;&nbsp;ws |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;854 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;909 | &nbsp;&nbsp;AS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;914 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;913 | &nbsp;&nbsp;cs |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;915 | &nbsp;&nbsp;TR |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;485 | &nbsp;&nbsp;AVR |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL PRIME VAL OBL | &nbsp;&nbsp;859 | &nbsp;&nbsp;CAP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL PRIME VAL OBL | &nbsp;&nbsp;853 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL PRIME VAL OBL | &nbsp;&nbsp;856 | &nbsp;&nbsp;ss |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES TAX-FREE OBLIGATIONS FUND | &nbsp;&nbsp;15 | &nbsp;&nbsp;ws |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TAX-FREE OBLIGATIONS FUND | &nbsp;&nbsp;397 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TAX-FREE OBLIGATIONS FUND | &nbsp;&nbsp;486 | &nbsp;&nbsp;AVR |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL TX-FREE CSH TR | &nbsp;&nbsp;42 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL TX-FREE CSH TR | &nbsp;&nbsp;73 | &nbsp;&nbsp;PRM |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES TREASURY OBLIGATIONS FUND | &nbsp;&nbsp;115 | &nbsp;&nbsp;AS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TREASURY OBLIGATIONS FUND | &nbsp;&nbsp;862 | &nbsp;&nbsp;CAP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TREASURY OBLIGATIONS FUND | &nbsp;&nbsp;68 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TREASURY OBLIGATIONS FUND | &nbsp;&nbsp;398 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TREASURY OBLIGATIONS FUND | &nbsp;&nbsp;702 | &nbsp;&nbsp;TR |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES TR FOR U.S. TRSY OBLIGATIONS | &nbsp;&nbsp;54 | &nbsp;&nbsp;cs |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TR FOR U.S. TRSY OBLIGATIONS | &nbsp;&nbsp;52 | &nbsp;&nbsp;CII |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TR FOR U.S. TRSY OBLIGATIONS | &nbsp;&nbsp;59 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES U.S. TREASURY CASH RSV | &nbsp;&nbsp;632 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES U.S. TREASURY CASH RSV | &nbsp;&nbsp;125 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;COLLECTIVE TRUSTS |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL PRESERVATION FUND | &nbsp;&nbsp;4 | &nbsp;&nbsp;ISP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL PRESERVATION FUND | &nbsp;&nbsp;25 | &nbsp;&nbsp;RP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL PRESERVATION FUND | &nbsp;&nbsp;26 | &nbsp;&nbsp;SP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL PRESERVATION FUND | &nbsp;&nbsp;27 | &nbsp;&nbsp;yp |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL PRESERVATION FUND | &nbsp;&nbsp;35 | &nbsp;&nbsp;R6P |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL PRESERVATION FUND | &nbsp;&nbsp;40 | &nbsp;&nbsp;IP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL FIXED INCOME FUND | &nbsp;&nbsp;45 |  |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;**DST Asset Manager Solutions, Inc.** | &nbsp;&nbsp;**By each of the Federated Funds Set forth on Exhibit A.** |
| &nbsp;&nbsp;By: /s/Rahul Kanwar | &nbsp;&nbsp;By: /s/Peter Germain |
| &nbsp;&nbsp;Name: Rahul Kanwar | &nbsp;&nbsp;Name: Peter Germain |
| &nbsp;&nbsp;Title: President/COO | &nbsp;&nbsp;Title: Secretary |

---

**Schedule B**

**Transfer Agency Services**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>General</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. As used in this <u>Schedule A</u>, the following additional terms have the
following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "ACH" shall mean the Automated Clearing House;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Bank" shall mean a nationally or regionally known banking institution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "Code" shall mean the Internal Revenue Code of 1986, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "DTCC" shall mean the Depository Trust Clearing Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "IRA" shall mean Individual Retirement Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) "Procedures" shall collectively mean DST's transfer agency
procedures manual, third party check procedures, checkwriting draft procedures, Compliance + and identity theft programs and signature
guarantee procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) "Program" shall mean Networking, Fund Serv or other DTCC program;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) "TA2000 System" shall mean DST's TA2000<sup>TM</sup>computerized
data processing system for shareholder accounting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Any references to Law shall be construed to mean the Law as amended to the
date of the effectiveness of the applicable provision referencing the Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Fund acknowledges that DST's ability to perform the Services is
subject to the following dependencies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Fund and other Persons that are not employees or agents of DST, whose
cooperation is reasonably required for DST to provide the Services, providing cooperation, information and, as applicable, instructions
to DST promptly, in agreed formats, by agreed media and within agreed timeframes as required to provide the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The communications systems operated by the Fund and other Persons that are
not employees or agents of DST remaining fully operational.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The accuracy and completeness of any the Fund Data or other information
provided to DST in connection with the Services by any Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any warranty, representation, covenant or undertaking expressly made by
the Fund under or in connection with this Agreement being and remaining true, correct and discharged at all relevant times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The following Services will be performed by DST and, as applicable, are
contingent on the performance by the Fund of the duties and obligations listed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. <u>SERVICES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Scope of Agency Services; DST Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. DST utilizing the TA2000 System will perform the following services:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) issuing, transferring and redeeming book entry shares or cancelling share certificates as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) maintaining shareholder accounts on the records of the Fund on the TA2000 System in accordance with the instructions and information received by DST from the Fund, the Fund's distributor, manager or managing dealer, the Fund's investment adviser, the Fund's sponsor, the Fund's custodian, or the Fund's administrator and any other person whom the Fund names on Schedule C (each an "Authorized Person"), broker-dealers or shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) when and if a Fund participates in the DTCC, and to the extent DST supports the functionality of the applicable DTCC program:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) DST will accept and effectuate the registration and maintenance of accounts through the Program and the purchase, redemption, exchange and transfer of shares in such accounts through systems or applications offered via the Program in accordance with instructions transmitted to and received by DST by transmission from DTCC on behalf of broker-dealers and banks which have been established by, or in accordance with the instructions of, an Authorized Person, on the Dealer File maintained by DST,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) issuing instructions to the Funds' banks for the settlement of transactions between the Funds and DTCC (acting on behalf of its broker-dealer and bank participants),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) providing account and transaction information from each affected Fund's records on TA2000 in accordance with the applicable Program's rules, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) maintaining shareholder accounts on TA2000 through the Programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) providing control book, also known as transaction journal and super sheet which is a daily record for the Fund of all transactions and receipts and disbursements of money and securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) preparing shareholder meeting lists as needed for use in connection with shareholder meetings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) withholding, as required by federal law, taxes on shareholder accounts, performing and paying backup withholding as required for all shareholders, and preparing, filing and providing, in electronic format, the applicable U.S. Treasury Department information returns or K-1 data file, as applicable, to Fund's vendor of choice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) disbursing income dividends and capital gains distributions to shareholders and recording reinvestment of dividends and distributions in shares of the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) preparing and providing, in electronic format, a file to Fund's print vendor of choice in order that the vendor may prepare and send:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) confirmation forms for shareholders for all purchases and liquidations of shares of the Fund and other confirmable transactions in shareholders' accounts,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) copies of shareholder statements, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) shareholder reports and prospectuses provided by the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) providing or making available on-line daily and monthly reports as provided by the TA2000 System and as requested by the Fund or its management company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) maintaining those records necessary to carry out DST's duties hereunder, including all information reasonably required by the Fund to account for all transactions on TA2000 in the Fund shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) calculating the appropriate sales charge, if applicable and supported by TA2000, with respect to each purchase of the Fund shares as instructed by an Authorized Person, determining the portion of each sales charge payable to the dealer participating in a sale in accordance with schedules and instructions delivered to DST by the Fund's managing dealer or distributor or any other Authorized Person from time to time, disbursing dealer commissions collected to such dealers, deducting from all redemption proceeds any applicable contingent deferred sales charges or other appropriate fees and determining the portion of each sales charge payable to such managing dealer and disbursing such commissions to the managing dealer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) receiving correspondence pertaining to any former, existing or new shareholder account, processing such correspondence for proper recordkeeping, and responding to shareholder correspondence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) processing, generally on the date of receipt, purchases, redemptions, exchanges, or instructions, as applicable, to settle any mail or wire order purchases, redemptions or exchanges received in proper order as set forth in the prospectus and general exchange privilege applicable, and rejecting any requests not received in proper order (as defined by an Authorized Person or the Procedures as hereinafter defined);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) pursue and enforce any claims related to or in connection with medallion signature guarantees and undertake all such reasonable efforts to seek any required collections in connection with such medallion signature guarantee claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) provide daily data files to the Fund indicating the total number of shares issued and outstanding in each state for "blue sky" purposes as determined according to Proper Instructions delivered from time to time by the Fund to DST.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) providing to the Fund escheatment reports as requested by an Authorized Person with respect to the status of accounts and outstanding checks on TA2000; DST shall perform the following services (the "Core Escheatment Services") for, and to assist, the Fund in complying with state escheatment requirements: (i) identify and process the Fund's accounts that have returned post office mail ("RPO accounts"), inactive accounts and uncashed checks; (ii) perform all required lost shareholder searches in compliance with Rule 17Ad-17; (iii) perform all required state unclaimed property due diligence mailings based on state mailing schedules; (iv) provide pre-escheatment reports during January/February for the Fall cycle and November/December for the Spring/Summer cycles; (v) capture and maintain customer "date of last contact" and type of contact; and (vi) escheat abandoned and unclaimed assets based on applicable state dormancy periods and remittance schedules. In consideration of the performance of the Core Escheatment Services by DST, the Funds shall pay DST the Core Escheatment Service fees set forth in a separate fee letter. In addition to the Core Escheatment Services, DST has enhanced its unclaimed property administration ("UPA") services to include certain additional optional outreach capabilities DST shall provide the Outreach Services to the Fund in accordance with the terms set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) as mutually agreed upon by the parties as to the service scope and fees, answer telephone inquiries during mutually agreed upon times, each day on which the New York Stock Exchange is open for trading. DST shall answer and respond to inquiries from existing shareholders, prospective shareholders of the Fund and broker-dealers on behalf of such shareholders in accordance with the telephone scripts provided by the Fund to DST, such inquiries may include requests for information on account set-up and maintenance, general questions regarding the operation of the Fund, general account information including dates of purchases, redemptions, exchanges and account balances, requests for account access instructions and literature requests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) (where applicable) supporting Fund tender offers, including but not limited to: assistance with shareholder communication plan; coordination of tender offer materials; establishment of informational website; receipt, review and reconciliation of letters of transmittal; daily tracking, reconciliation and reporting of shares tendered; and issuing tax forms.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) in order to assist the Fund with the Fund's anti-money laundering responsibilities under the Bank Secrecy Act of 1973, US PATRIOT ACT and other applicable anti-money laundering laws, DST shall provide certain risk-based shareholder activity monitoring tools and procedures that are reasonably designed to: (i) promote the detection and reporting of potential money laundering activities; and (ii) assist in the verification of persons opening accounts with the Fund. If the Fund elects to have DST implement the anti-money laundering procedures and delegate the day-to-day operation of such anti-money laundering procedures to DST, the parties will agree to upon the applicable fees and the service scope and execute the attached appendix ("Appendix 1" entitled "AML Delegation") which may be changed from time to time subject to mutual written agreement between the parties;

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) as mutually agreed upon by the parties as to the service scope and fees, provide any additional related services (i.e., pertaining to escheatments, abandoned property, garnishment orders, bankruptcy and divorce proceedings, Internal Revenue Service or state tax authority tax levies and summonses and all matters relating to the foregoing); and

 

's(xxi) upon request of the Fund and mutual agreement between the parties as to the scope and any applicable fees, DST may provide additional services to the Fund under the terms of this Schedule and the Agreement. Such services and fees shall be set forth in a writing and may be added by an amendment to, or as a statement of work under, this Schedule or the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. At the request of an Authorized Person, DST shall use reasonable efforts to provide the services set forth in Section 1.A of this Schedule A in connection with transactions (i) the processing of which transactions require DST to use methods and procedures other than those usually employed by DST to perform shareholder servicing agent services, (ii) involving the provision of information to DST after the commencement of the nightly processing cycle of the TA2000 System or (iii) which require more manual intervention by DST, either in the entry of data or in the modification or amendment of reports generated by the TA2000 System than is usually required by normal transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. DST shall use reasonable efforts to provide the same services with respect to any new, additional functions or features or any changes or improvements to existing functions or features as provided for in the Fund's instructions, prospectus or application as amended from time to time, for the Fund provided DST is advised in advance by the Fund of any changes therein and the TA2000 System and the mode of operations utilized by DST as then constituted supports such additional functions and features. If any new, additional function or feature or change or improvement to existing functions or features or new service or mode of operation measurably increases DST's cost of performing the services required hereunder at the current level of service, DST shall advise the Fund of the amount of such increase and if the Fund elects to utilize such function, feature or service, DST shall be entitled to increase its fees by the amount of the increase in costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The Fund acknowledges that DST is currently using, and will continue to use, domestic or foreign DST affiliates to assist with software development and support projects for DST and/or for the Fund. As part of such support, the Fund acknowledges that such affiliates may access the Fund Confidential Information including, but not limited to, personally identifiable shareholder information (shareholder name, address, social security number, account number, etc.).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. The Fund shall add all new funds to the TA2000 System upon at least 60 days' prior written notice to DST provided that the requirements of the new funds are generally consistent with services then being provided by DST under the Agreement. If less than 60 days' prior notice is provided by the Fund, additional 'rush' fees may be applied by DST. Rates or charges for additional funds shall be as set forth in the Fee Letter for the remainder of the contract term except as such funds use functions, features or characteristics for which DST has imposed an additional charge as part of its standard pricing schedule. In the latter event, rates and charges shall be in accordance with DST's then-standard pricing schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. The parties agree that to the extent that DST provides any services under the Agreement that relate to compliance by the Fund with the Code (or any other applicable tax law), it is the parties' mutual intent that DST will provide only printing, reproducing, and other mechanical assistance to the Fund and that DST will not make any judgments or exercise any discretion of any kind. The Fund agrees that it will provide express and comprehensive instructions to DST in connection with all of the services that are to be provided by DST under the Agreement that relate to compliance by the Fund with the Code (or any other applicable tax law), including providing responses to requests for direction that may be made from time to time by DST of the Fund in this regard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. The Fund instructs and authorizes DST to provide the services as set forth in the Agreement in connection with transactions on behalf of certain IRAs featuring the funds made available by the Fund. The Fund acknowledges and agrees that as part of such services, DST will act as service provider to the custodian for such IRAs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. If applicable, DST will make original issues of shares, or if shares are certificated, stock certificates upon written request of an officer of the Fund and upon being furnished with a certified copy of a resolution of the Board of Directors authorizing such original issue, evidence regarding the value of the shares, and necessary funds for the payment of any original issue tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Upon receipt of a Fund's written request, DST shall provide transmissions of shareholder activity to the print vendor selected by the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. In the event that certificates for shares of the Fund shall be represented to have been lost, stolen or destroyed, DST, upon being furnished with an indemnity bond in such form and amount and with such surety as shall be reasonably satisfactory to it, is authorized to countersign a new certificate or certificates for the number of shares of the Fund represented by the lost or stolen certificate. In the event that certificates of the Fund shall be represented to have been lost, stolen, missing, counterfeited or recovered, DST shall file Form X-17F-1A as required by applicable federal securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K. Shares of stock will be transferred in accordance with the instructions of the shareholders and, upon receipt of the Fund's instructions that shares of stock be redeemed and funds remitted therefor, such redemptions will be accomplished and payments dispatched provided the shareholder instructions are deemed by DST to be duly authorized. DST reserves the right to refuse to transfer, exchange, sell or redeem shares as applicable, until it is satisfied that the request is authorized, or instructed by the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L. [ ]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M. <u>Changes and Modifications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) DST shall have the right, at any time, to modify any systems, programs, procedures or facilities used in performing its obligations hereunder; provided that the Fund will be notified as promptly as possible prior to implementation of such modifications and that no such modification or deletion shall materially adversely change or affect the operations and procedures of the Fund in using the TA2000 System hereunder, the Services or the quality thereof, or the reports to be generated by such system and facilities hereunder, unless the Fund is given thirty (30) days' prior notice to allow the Fund to change its procedures and DST provides the Fund with revised operating procedures and controls.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All enhancements, improvements, changes, modifications or new features added to the TA2000 System however developed or paid for, including, without limitation, Client Requested Software (collectively, "Deliverables"), shall be, and shall remain, the confidential and exclusive property of, and proprietary to, DST. The parties recognize that during the Term of this Agreement the Fund will disclose to DST Confidential Information and DST may partly rely on such Confidential Information to design, structure or develop one or more Deliverables. Provided that, as developed, such Deliverable(s) contain no Confidential Information that identifies the Fund or any of its investors or which could reasonably be expected to be used to readily determine such identity, (i) the Fund hereby consents to DST's use of such Confidential Information to design, to structure or to determine the scope of such Deliverable(s) or to incorporate into such Deliverable(s) and that any such Deliverable(s), regardless of who paid for it, shall be, and shall remain, the sole and exclusive property of DST and (ii) the Fund hereby grants DST a perpetual, nonexclusive license to incorporate and retain in such Deliverable(s) Confidential Information of the Fund. All Confidential Information of the Fund shall be and shall remain the property of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Fund Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Fund agrees to use its reasonable efforts to deliver to DST in Kansas City, Missouri, as soon as they are available, all of its shareholder account records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Fund will provide DST written notice of any change in Authorized Personnel as set forth on Schedule C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Fund will notify DST of material changes to its Articles of Incorporation or Bylaws (e.g. in the case of recapitalization) that impact the services provided by DST under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. If at any time the Fund receives notice or becomes aware of any stop order or other proceeding in any such state affecting such registration or the sale of the Fund's shares, or of any stop order or other proceeding under the federal securities laws affecting the sale of the Fund's shares, the Fund will give prompt notice thereof to DST.

&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Compliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. DST shall perform the services under this Schedule A in conformance with DST's present procedures as set forth in its Procedures with such changes or deviations therefrom as may be from time to time required or approved by the Fund, its investment adviser or managing dealer, or its or DST's counsel and the rejection of orders or instructions not in good order in accordance with the applicable prospectus or the Procedures. Notwithstanding the foregoing, DST's obligations shall be solely as are set forth in this Schedule and any of other obligations of the Fund under applicable law that DST has not agreed to perform on the Fund's behalf under this Schedule or the Agreement shall remain the Fund's sole obligation.

&nbsp;&nbsp;&nbsp;&nbsp;B. The Fund hereby advises DST that all of the shares of the Fund are sold by broker-dealers who have executed selling group or dealer agreements with the Fund pursuant to which agreements the affected broker-dealer has assumed all obligations and responsibilities under applicable laws with respect to customer identification procedures, identity theft and the red flag regulations and that, therefore, such obligations and responsibilities are not among the obligations and responsibilities that the Fund is employing DST to provide or fulfill. Any requirement to comply with applicable law with respect to any attempt to verify the identity of shareholders of the shares of the Fund shall remain with the Fund and the Fund's broker-dealers.

&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Bank Accounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. DST, acting as agent for the Fund, is hereby authorized (1) to establish accounts in the name of, and to maintain on behalf of, the Fund, on the usual terms and conditions prevalent in the industry, including limits or caps (based on fees paid over some period of time or a flat amount, as required by the affected Bank on the maximum liability of such Banks) into which DST shall deposit the funds DST receives for payment of dividends, distributions, purchases of Fund shares, redemptions of Fund shares, commissions, corporate re-organizations (including recapitalizations or liquidations) or any other disbursements made by DST on behalf of the Fund provided for in this Schedule A, (2) to draw checks upon such accounts, to issue orders or instructions to the Bank for the payment out of such accounts as necessary or appropriate to accomplish the purposes for which such funds were provided to DST, and (3) to establish, to implement and to transact Fund business through ACH, draft processing, wire transfer and any other banking relationships, arrangements and agreements with such Bank as are necessary or appropriate to fulfill DST's obligations under the Agreement. DST, acting as agent for the Fund, is also hereby authorized to execute on behalf and in the name of the Fund, on the usual terms and conditions prevalent in the industry, including limits or caps (based on fees paid over some period of time or a flat amount, as required by the affected Bank) on the maximum liability of such Banks, agreements with banks for ACH, wire transfer, draft processing services, as well as any other services which are necessary or appropriate for DST to utilize to accomplish the purposes of this Schedule. In each of the foregoing situations the Fund shall be liable on such agreements with the Bank as if it itself had executed the agreement. Nothing in this section shall mitigate the obligations established pursuant to Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. DST is authorized and directed to stop payment of checks theretofore issued hereunder, but not presented for payment, when the payees thereof allege either that they have not received the checks or that such checks have been mislaid, lost, stolen, destroyed or through no fault of theirs, are otherwise beyond their control, and cannot be produced by them for presentation and collection, and, to issue and deliver duplicate checks in replacement thereof.

&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Records</u>.

DST will maintain customary transfer agent records in connection with its agency in accordance with the transfer agent recordkeeping requirements under applicable federal securities laws. Notwithstanding anything in the Agreement to the contrary, the records to be maintained and preserved by DST on the TA2000 System under the Agreement shall be maintained and preserved in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Annual Purges by August 31: DST and the Fund shall mutually agree upon a date for the annual purge of the appropriate history transactions from the Transaction History (A88) file for accounts (both regular and tax advantaged accounts) that were open as of January 1 of the current year, such purge to be complete no later than August 31. Purges completed after this date will subject the Fund to the Aged History Retention fees set forth in the Fee Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Purge Criteria: In order to avoid the Aged History Retention fees, history data for regular or ordinary accounts (that is, non-tax advantaged accounts) must be purged if the confirmation date of the history transaction is prior to January 1 of the current year and history data for tax advantaged accounts (retirement and educational savings accounts) must be purged if the confirmation date of the history transaction is prior to January 1 of the prior year. All purged history information shall be retained on magnetic tape for 7 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Purged History Retention Options (entail an additional fee): For the additional fees set forth on the Fee Letter, or as otherwise mutually agreed, then Fund may choose (i) to place purged history information on the Purged Transaction History (A19) table or (ii) to retain history information on the Transaction History (A88) file beyond the timeframes defined above. Retaining information on the A19 table allows for viewing of this data through online facilities and E-Commerce applications. This database does not support those histories being printed on statements and reports and is not available for on request job executions.

&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Disposition of Books, Records and Canceled Certificates</u>.

DST may send periodically to the Fund, or to where designated by the Fund, all books, documents, and all records no longer deemed needed for current purposes, upon the understanding that such books, documents, and records will be maintained by the Fund under and in accordance with the requirements of applicable federal securities laws. Such materials will not be destroyed by the Fund without the consent of DST (which consent will not be unreasonably withheld), but will be safely stored for possible future reference.

**SCHEDULE C**

**AUTHORIZED PERSONNEL**

Pursuant to the terms of the Schedule A and the Agreement between the Fund and DST, the Fund authorizes the following Fund personnel to provide instructions to DST, and receive inquiries from DST in connection with Schedule A and the Agreement:

---

| | |
|:---|:---|
| <u>Name</u> | <u>Title</u> |
| **_____________________________** | **________________________________** |
| **_____________________________** | **________________________________** |
| **_____________________________** | **________________________________** |
| **_____________________________** | **________________________________** |
| **_____________________________** | **________________________________** |
| _____________________________ | ________________________________ |
| _____________________________ | ________________________________ |
| **_____________________________** | **________________________________** |
| **_____________________________** | **________________________________** |
| **_____________________________** | **________________________________** |
| **_____________________________** | **________________________________** |

---

This Schedule may be revised by the Fund by providing DST with a substitute Schedule C. Any such substitute Schedule C shall become effective twenty-four (24) hours after DST's receipt of the document and shall be incorporated into the Agreement.

**APPENDIX 1**

**ANTI-MONEY LAUNDERING DELEGATION**

1. <u>Delegation.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 In order to assist the Fund with the Fund's AML responsibilities under
applicable AML laws, DST offers certain risk-based AML Procedures that are reasonably designed to: (i) promote the detection and reporting
of potential money laundering activities; and (ii) assist in the verification of persons opening accounts with the Fund. The Fund has
had an opportunity to review the AML Procedures with DST and desires to implement the AML Procedures as part of the Fund's overall
AML program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Accordingly, subject to the terms and conditions set forth in this Agreement,
the Fund hereby instructs and directs DST to implement the AML Procedures as set forth in Section 4 below on the Fund's behalf and
delegates to DST the day-to-day operation of the AML Procedures. The AML Procedures set forth in Section 4 may be amended, from time to
time, by mutual agreement of the Fund and DST upon the execution by such parties of a revised Appendix 1 bearing a later date than the
date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 DST agrees to perform such AML Procedures, with respect to the ownership of Shares in the Fund for which
DST maintains the applicable shareholder information, subject to and in accordance with the terms and conditions of this Agreement.

2. <u>Consent to Examination.</u> In connection with the performance by DST of the AML Procedures, DST understands
and acknowledges that the Fund remains responsible for assuring compliance with the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 ()"**USA PATRIOT Act")** and that the records DST maintains for the Fund relating to the AML Program may be subject, from time to time, to examination and/or inspection
by federal regulators in order that the regulators may evaluate such compliance. DST hereby consents to such examination and/or inspection
and agrees to cooperate with such federal examiners in connection with their review. For purposes of such examination and/or inspection,
DST will use its best efforts to make available, during normal business hours and on reasonable notice all required records and information
for review by such examiners.

3. <u>Limitation on Delegation.</u> The Fund acknowledges and agrees that in accepting the delegation hereunder,
DST is agreeing to perform only the AML Procedures, as may be amended from time to time, and is not undertaking and shall not be responsible
for any other aspect of the AML Program or for the overall compliance by the Fund with the USA PATRIOT Act or for any other matters that
have not been delegated hereunder. Additionally, the parties acknowledge and agree that DST shall only be responsible for performing the
AML Procedures with respect to the ownership of, and transactions in, Shares in the Fund for which DST maintains the applicable Fund shareholder
information.

4. <u>AML Procedures [1](#note_ftn1)</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 Consistent with the services provided by DST and with respect to the ownership
of Shares in the Fund for which DST maintains the applicable Fund shareholder information, DST shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On a daily basis, submit all new customer account registrations and registration changes against the Office of Foreign Assets Control ("OFAC") database, the Politically Exposed Persons ("PEP") database, and such other lists or databases as may be required from time to time by applicable regulatory authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Submit all account registrations through OFAC database, the PEP database, and such other lists or databases as may be required from time to time by applicable regulatory authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On a daily basis, submit special payee information from checks, outgoing wires and systematic withdrawal files through the OFAC database;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Review certain types of redemption transactions that occur within thirty-four (34) days of an account establishment, registration change, or banking information change (e.g. redemption by wire within 34 days of banking information change; rapid depletion of account balance after establishment; and redemption by check within 34 days of address change);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Review wires sent pursuant to banking instructions other than those on file with DST;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Review accounts with small balances followed by large purchases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Review accounts with frequent activity within a specified date range followed by a large redemption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Review purchase and redemption activity by check that meets or exceeds $100,000 threshold on any given day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Determine when a suspicious activity report ("SAR") should be filed as required by regulations applicable to mutual funds; prepare and file the SAR; provide the Fund with a copy of the SAR within a reasonable time after filing; and notify the Fund if any further communication is received from the U.S. Department of the Treasury or other law enforcement agencies regarding such filing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Compare account information to any FinCEN request received by the Fund and provided to DST pursuant to USA PATRIOT Act Sec. 314(a). Provide the Fund with the necessary information for it to respond to such request within required time frame;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) (i) Take reasonable steps to verify the identity of any person seeking to become a new customer of the Fund and notify the Fund in the event such person cannot be verified, (ii) Maintain records of the information used to verify the person's identity, as required, and (iii) Determine whether the person appears on any lists of known or suspected terrorists or terrorist organizations provided to the Fund by any government agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Except with respect to any entities excluded under applicable regulation: (i) take reasonable steps to verify the identity of legal entities seeking to become new customers of the Fund, including verifying the identity of the natural person(s) retaining ownership or controlling interest in such legal entity (the " Beneficial Owner(s)"), as such ownership and controlling interests are defined in 31 C.F.R. 1010.230, (ii) notify the Fund in the event that the identity of such Beneficial Owner(s) is not provided upon request to such entity or cannot be verified, (iii) maintain records of the information used to verify such Beneficial Owners, as required, and (iv) determine whether such persons appear on any lists of known or suspected terrorists or terrorist organizations provided to the Fund by any government agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Conduct due diligence and if required, enhanced due diligence in accordance with 31 C.F.R. 103.176(b) for new and existing correspondent accounts for foreign financial institutions (as defined in 31 C.F.R. 103.175). DST will perform an assessment of the money laundering risk presented by the account based on a consideration of relevant factors in accordance with applicable law and information provided by the foreign financial institution in a financial institution questionnaire. If an account is determined to have a medium or above risk-ranking, DST will monitor the account on a monthly basis for unusual activity. In the situation where due diligence cannot be completed with respect to an account, DST will contact the Fund's AML Officer for further instruction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Upon the request by the Fund, conduct due diligence to determine if the Fund is involved with any foreign jurisdiction, institution, class of transactions and a type of account designated, from time to time, by the U.S. Department of Justice in order to identify and take certain "special measures" against such entities as required under Section 311 of the USA PATRIOT Act (31 C.F.R. 103.193).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Create and retain records required under 31 CFR 103.33 in connection with the transmittals of funds in amounts equal to or in excess of $3,000, and transmit such information on the transactions to the receiving financial institutions.

4.1 In the event that DST detects activity as a result of the foregoing procedures, which necessitates the filing by DST of a SAR or other similar report or notice to OFAC, then DST shall also immediately notify the Fund, unless prohibited by applicable law.

**APPENDIX 2**

**INFORMATION SECURITY SCHEDULE** 

All capitalized terms not defined in this Information Security Schedule (this "Security Schedule") shall have the meanings ascribed to them in the Transfer Agency and Service Agreement by and between DST and each of the funds listed on Exhibit A thereto (each such fund, or series thereof, severally, and not jointly, the "Fund") dated March 1, 2022 (the "Agreement").

DST and Fund hereby agree that DST shall maintain and comply with an information security policy ("Security Policy") that satisfies the requirements set forth below; provided, that, because information security is a highly dynamic space (where laws, regulations and threats are constantly changing), DST reserves the right to make changes to its information security controls at any time and at the sole discretion of DST in a manner that it believes does not materially reduce the protection it applies to Fund Data.

From time to time, DST may subcontract services performed under the Agreement (to the extent provided for under the Agreement) or provide access to Fund Data or its network to a subcontractor or other third party; provided, that, such subcontractor or third party implements and maintains security measures DST believes are at least as stringent as those described in this Security Schedule.

For the purposes of this Schedule "prevailing industry practices and standards" refers to standards among financial institutions, including mutual funds, and third parties providing financial services to financial institutions.

**1. Objective.** 

The objective of DST's Security Policy and related information security program is to implement data security measures reasonably designed in material respects to be consistent with applicable prevailing industry practices and standards ("Objective"). In order to meet such Objective, DST uses commercially reasonable efforts to:

a. Protect the privacy, confidentiality, integrity, and availability of all confidential data and information
disclosed by or on behalf of Fund to, or otherwise comes into the possession of DST, in connection with the provision of services under
the Agreement and to the extent the same is deemed confidential information under the terms of the Agreement (collectively, "Fund
Data"). For the avoidance of doubt, and without limiting the foregoing, "Fund Data" includes all Confidential Information
of the Fund and its agents or service providers, including, without limitation all "Customer Information," as contemplated
in the Agreement;

b. Protect against accidental, unauthorized, unauthenticated or unlawful access, copying, use, processing,
disclosure, alteration, transfer, loss or destruction of the Fund Data;

c. Comply with applicable governmental laws, rules and regulations that are relevant to the handling, processing
and use of Fund Data by DST in accordance with the Agreement; and

d. Implement customary administrative, physical, technical, procedural and organizational safeguards.

e. Implement means and technology to encrypt Fund Data, mutually acceptable between the Fund and DST, while
in transit to and from DST.

**2. Risk Assessments.** 

a. **Risk Assessment** - DST shall, at least annually, perform risk assessments that are designed to identify
material threats (both internal and external) against Fund Data, the likelihood of those threats Schedule 10.2 p.2 occurring and the impact
of those threats upon DST organization to evaluate and analyze the appropriate level of information security safeguards ("Risk Assessments").

b. **Risk Mitigation** - DST shall use commercially reasonable efforts to manage, control and remediate
threats identified in the Risk Assessments that it believes are likely to result in material unauthorized access, copying, use, processing,
disclosure, alteration, transfer, loss or destruction of Fund Data, consistent with the Objective, and commensurate with the sensitivity
of the Fund Data and the complexity and scope of the activities of DST pursuant to the Agreement.

c. **Security Controls Testing** - DST shall, on approximately an annual basis, engage an independent
external party to conduct a review (including information security) of DST's systems that are related to the provision of services.
DST shall have a process to review and evaluate high risk findings resulting from this testing.

**3.** **Security Controls.** Annually, upon Fund's reasonable request, DST
shall provide Fund's Chief Information Security Officer or his or her designee with a summary of its corporate
information security policy and an opportunity to discuss DST's information security measures,
and a high level and non-confidential summary of any penetration testing related to the provision of in-scope services . DST shall review
its Security Policy annually.

**4.** **Organizational Security.** 

a. **Responsibility** - DST shall assign responsibility for information security management to qualified
personnel only.

b. **Access** - DST shall permit only those personnel performing roles supporting the provision of services
under the Agreement to access Fund Data.

c. **Confidentiality** - DST personnel who have accessed or otherwise been made known of Fund Data shall
maintain the confidentiality of such information in accordance with the terms of the Agreement.

d. **Training -** DST will provide information security training to its personnel on approximately an
annual basis.

**5.** **Asset Management.** 

a. **Data Sensitivity** - DST acknowledges that it understands the sensitivity of Fund Data.

b. **External Hosting Facilities** – DST shall implement controls, consistent with applicable prevailing
industry practices and standards, regarding the collection, use, storage and/or disclosure of Fund Data by an external hosting provider.

**6.** **Physical Security.** 

a. **Securing Physical Facilities** - DST shall maintain systems located in DST facilities that host Fund
Data or provide services under the Agreement in an environment that is designed to be physically secure and to allow access only to authorized
individuals. A secure environment includes the availability of onsite security personnel on a 24 x 7 basis or equivalent means of monitoring
locations supporting the delivery of services under the Agreement.

b. **Physical Security of Media** - DST shall implement controls, consistent with applicable prevailing
industry practices and standards, that are designed to deter the unauthorized viewing, copying, alteration or removal of any media containing
Fund Data. Removable media on which Fund Data is Schedule 10.2 p.3 stored by DST (including thumb drives, CDs, and DVDs, and PDAS) will
be encrypted based on DST encryption policies.

c. **Media Destruction** - DST shall destroy removable media and any mobile device (such as discs, USB
drives, DVDs, back-up tapes, laptops and PDAs) containing Fund Data or use commercially reasonable efforts to render Fund Data on such
physical media unintelligible if such media or mobile device is no longer intended to be used. All backup tapes that are not destroyed
must meet the level of protection described in this Security Schedule until destroyed or rendered irretrievable.

d. **Paper Destruction** - DST shall shred all paper waste containing Fund Data and dispose in a secure
and confidential manner making it unrecoverable.

**7.** **Communications and Operations Management.** 

a. **Network Penetration Testing** - DST shall, on approximately an annual basis, contract with an independent
third party to conduct a network penetration test on its network having access to or holding or containing Fund Data. DST shall have a
process to review and evaluate high risk findings resulting from this testing.

b. **Data Protection During Transmission -** DST shall encrypt, using an industry standard encryption
algorithm, personally identifiable Fund Data when such data is transmitted.

c. **Data Loss Prevention -** DST shall implement a data leakage program that is designed to identify,
detect, monitor and document Fund Data leaving DST's control without authorization in place.

d. **Malicious Code –** DST shall implement controls that are designed to detect the introduction
or intrusion of malicious code on information systems handling or holding Fund Data and implement a process for removing said malicious
code from information systems handling or holding Fund Data.

**8.** **Access Controls.** 

a. **Authorized Access** - DST shall have controls that are designed to maintain the logical separation
such that access to systems hosting Fund Data and/or being used to provide services to Fund will uniquely identify each individual requiring
access, grant access only to authorized personnel based on the principle of least privileges, and prevent unauthorized access to Fund
Data.

b. **User Access** - DST shall have a process to promptly disable access to Fund Data by any DST personnel
who no longer requires such access. DST will also promptly remove access of Fund personnel upon receipt of notification from Fund.

c. **Authentication Credential Management** - DST shall communicate authentication credentials to users
in a secure manner, with a proof of identity check of the intended users.

d. **Multi-Factor Authentication for Remote Access** - DST shall use multi factor authentication and a
secure tunnel, or another strong authentication mechanism, when remotely accessing DST's internal network.

**9.** **Use of Laptop and Mobile Devices in connection with the Agreement.** 

a. **Encryption Requirements** – DST will not locally store Fund Data on any laptops or mobile devices
(e.g., Blackberries, PDAs) managed by DST.

b. **Secure Storage** - DST shall require that all laptops and mobile devices be securely stored Schedule
10.2 p.4 whenever out of the personnel's immediate possession.

c. **Inactivity Timeout** - DST shall employ access and password controls as well as inactivity timeouts
of no longer than fifteen (15) minutes on laptops, desktops and mobile devices managed by DST and used by DST's personnel.

**10.** **Information Systems Acquisition Development and Maintenance.** a. **Fund Data** – Fund Data
shall only be used by DST for the purposes specified in the Agreement. b. **Virus Management -** DST shall maintain a malware protection
program designed to deter malware infections, detect the presence of malware within DST environment.

**11.** **Incident Event and Communications Management.** 

a. **Incident Management/Notification of Breach** - DST shall develop, implement and maintain an incident
response plan that specifies actions to be taken when DST or one of its subcontractors suspects or detects that a party has gained material
unauthorized access to Fund Data or systems or applications containing any Fund Data (the "Response Plan"). Such Response
Plan shall include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. **Escalation Procedures** - An escalation procedure that includes notification to senior managers and
appropriate reporting to regulatory and law enforcement agencies. This procedure shall provide for reporting of incidents that compromise
the confidentiality of Fund Data (including backed up data) to Fund via telephone or email (and provide a confirmatory notice in writing
as soon as practicable); provided that the foregoing notice obligation is excused for such period of time as DST is prohibited by law,
rule, regulation or other governmental authority from notifying Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. **Incident Reporting** - DST will use commercially reasonable efforts to promptly furnish to Fund information
that DST has regarding the general circumstances and extent of such unauthorized access to the Fund Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. **Investigation and Prevention** - DST shall reasonably assist Fund in investigating of any such unauthorized
access and shall use commercially reasonable efforts to: (A) cooperate with Fund in its efforts to comply with statutory notice or other
legal obligations applicable to Fund or its clients arising out of unauthorized access and to seek injunctive or other equitable relief;
(B) cooperate with Fund in litigation and investigations against third parties reasonably necessary to protect its proprietary rights;
and (C) take reasonable actions necessary to mitigate loss from any such authorized access.

**FIRST AMENDMENT TO THE TRANSFER AGENCY SERVICES AGREEMENT**

This First Amendment (the "***First Amendment***") to the Transfer Agency and Services Agreement dated June 1, 2022 (the "***Agreement***") is entered into as of July 2 2022, 2022, between each of the investment vehicles listed on Schedule A of the Agreement, as amended hereto (the "***Funds***") and DST Asset Manager Solutions, Inc. ("***DST***", and together with the Funds, each a "***Party***" and collectively, the "***Parties***").

WHEREAS, on June 1, 2022, the Parties executed the Agreement by which the Funds agreed to engage DST to provide certain transfer agency services for the Funds and DST agreed to provide such services in accordance with and subject to the terms of the Agreement; and

WHEREAS, the Parties wish to amend Schedule A to the Agreement and make certain other changes;

NOW, THEREFORE, in consideration of the representations, warranties, covenants, and agreements set forth in the Agreement, the Parties hereby agree to enter into this First Amendment as follows:

1. Schedule A to the Agreement is deleted in its entirety and replaced by the
Schedule A attached to this First Amendment.

1. * The first paragraph of Appendix 2 of
the Agreement is deleted in its entirety and replaced by the following text:

"All capitalized terms not defined in this Information Security Schedule (this "Security Schedule") shall have the meanings ascribed to them in the Transfer Agency and Service Agreement by and between DST and each of the funds listed on Schedule A thereto (each such fund, or series thereof, severally, and not jointly, the "Fund") dated June 1, 2022 (the "Agreement")."

*[First Amendment to the Transfer Agency and Service Agreement signature page follows.]*

IN WITNESS WHEREOF, the Parties hereto have duly executed this First Amendment as of the date first above written.

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; **DST ASSET MANAGER SOLUTIONS, INC.** | &nbsp;&nbsp; **DST ASSET MANAGER SOLUTIONS, INC.** | **BY EACH OF THE FEDERATED HERMES FUNDS LISTED ON SCHEDULE A (OTHER THAN COLLECTIVE TRUSTS), SEVERALLY AND NOT JOINTLY** | **BY EACH OF THE FEDERATED HERMES FUNDS LISTED ON SCHEDULE A (OTHER THAN COLLECTIVE TRUSTS), SEVERALLY AND NOT JOINTLY** |
| &nbsp;&nbsp; <br> By: | /s/ Nick Wright | &nbsp;&nbsp; <br> By: | /s/ Peter Germain |
| &nbsp;&nbsp; <br> Name: | Nick Wright | &nbsp;&nbsp; <br> Name: | Peter Germain |
| &nbsp;&nbsp; <br> Title: | Authorized Signatory | &nbsp;&nbsp; <br> Title: | Secretary |

---

---

| | |
|:---|:---|
| **BY EACH OF THE FEDERATED HERMES FUNDS THAT ARE COLLECTIVE TRUSTS, SEVERALLY AND NOT JOINTLY** | **BY EACH OF THE FEDERATED HERMES FUNDS THAT ARE COLLECTIVE TRUSTS, SEVERALLY AND NOT JOINTLY** |
| &nbsp;&nbsp; <br> By: | /s/ Richard A. Novak |
| &nbsp;&nbsp; <br> Name: | Richard A. Novak |
| &nbsp;&nbsp; <br> Title: | President |

---

*[Signature Page to the First Amendment to the Transfer Agency and Services Agreement]*

 

 

 

 

 

Schedule A<br> December 2, 2022<br> Funds

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Date added to the contract** | &nbsp;&nbsp;**REGISTRANT NAME** | &nbsp;&nbsp;**SERIES NAME<br> (if applicable)** | &nbsp;&nbsp;**Transfer Agent Fund Number** | &nbsp;&nbsp;**Class** |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Adjustable Rate Securities Trust |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES ADJUSTABLE RATE FUND | &nbsp;&nbsp;96 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES ADJUSTABLE RATE FUND | &nbsp;&nbsp;325 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;8/31/2017 | &nbsp;&nbsp;Federated Hermes Adviser Series |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EMERGING MARKETS EQUITY FUND | &nbsp;&nbsp;813 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EMERGING MARKETS EQUITY FUND | &nbsp;&nbsp;818 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CONSERV MICROSHORT | &nbsp;&nbsp;564 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CONSERV MUNI MICRO | &nbsp;&nbsp;567 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL EQUITY FUND | &nbsp;&nbsp;934 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL EQUITY FUND | &nbsp;&nbsp;935 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL DEVELOPED EQUITY FUND | &nbsp;&nbsp;443 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL DEVELOPED EQUITY FUND | &nbsp;&nbsp;444 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SDG ENGAGEMENT EQUITY FUND | &nbsp;&nbsp;431 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SDG ENGAGEMENT EQUITY FUND | &nbsp;&nbsp;441 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SDG ENGAGEMENT EQUITY FUND | &nbsp;&nbsp;442 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SDG ENGAGEMENT HY CREDIT FUND | &nbsp;&nbsp;669 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SDG ENGAGEMENT HY CREDIT FUND | &nbsp;&nbsp;672 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL EQUITY FUND | &nbsp;&nbsp;713 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL EQUITY FUND | &nbsp;&nbsp;714 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL EQUITY FUND | &nbsp;&nbsp;717 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL EQUITY FUND | &nbsp;&nbsp;718 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL GROWTH FUND | &nbsp;&nbsp;728 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL GROWTH FUND | &nbsp;&nbsp;778 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP VALUE FUND | &nbsp;&nbsp;426 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP VALUE FUND | &nbsp;&nbsp;428 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP VALUE FUND | &nbsp;&nbsp;429 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP VALUE FUND | &nbsp;&nbsp;419 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP VALUE FUND | &nbsp;&nbsp;420 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP VALUE FUND | &nbsp;&nbsp;422 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP VALUE FUND | &nbsp;&nbsp;425 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES U.S. SMID FUND | &nbsp;&nbsp;165 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES U.S. SMID FUND | &nbsp;&nbsp;187 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT MARKET NEUTRAL FUND | &nbsp;&nbsp;299 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT MARKET NEUTRAL FUND | &nbsp;&nbsp;315 | &nbsp;&nbsp;IS |
|  | &nbsp;&nbsp;Federated Hermes Core Trust: |  |  |  |
| &nbsp;&nbsp;3/21/2016 |  | &nbsp;&nbsp;EMERGING MARKETS CORE FUND | &nbsp;&nbsp;812 |  |
| &nbsp;&nbsp;8/16/2010 |  | &nbsp;&nbsp;BANK LOAN CORE FUND | &nbsp;&nbsp;850 |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;MORTGAGE CORE FUND | &nbsp;&nbsp;938 |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;HIGH YIELD BOND CORE FUND | &nbsp;&nbsp;871 |  |
|  | &nbsp;&nbsp;Federated Hermes Core Trust III: |  |  |  |
| &nbsp;&nbsp;3/1/2008 |  | &nbsp;&nbsp;PROJECT AND TRADE FINANCE CORE FUND | &nbsp;&nbsp;148 |  |
|  | &nbsp;&nbsp;Federated Hermes Equity Funds: |  |  |  |
| &nbsp;&nbsp;12/1/2008 |  | &nbsp;&nbsp;FEDERATED HERMES CLOVER SMALL VALUE FUND | &nbsp;&nbsp;639 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CLOVER SMALL VALUE FUND | &nbsp;&nbsp;658 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CLOVER SMALL VALUE FUND | &nbsp;&nbsp;659 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CLOVER SMALL VALUE FUND | &nbsp;&nbsp;670 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CLOVER SMALL VALUE FUND | &nbsp;&nbsp;539 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;3/1/2008 |  | &nbsp;&nbsp;FEDERATED HERMES INTL STRATEGIC VAL DIV FUND | &nbsp;&nbsp;432 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTL STRATEGIC VAL DIV FUND | &nbsp;&nbsp;433 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTL STRATEGIC VAL DIV FUND | &nbsp;&nbsp;434 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTL STRATEGIC VAL DIV FUND | &nbsp;&nbsp;466 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN FUND | &nbsp;&nbsp;66 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN FUND | &nbsp;&nbsp;67 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN FUND | &nbsp;&nbsp;70 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN FUND | &nbsp;&nbsp;74 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN FUND | &nbsp;&nbsp;123 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;9/17/2007 |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN LARGE CAP FUND | &nbsp;&nbsp;352 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN LARGE CAP FUND | &nbsp;&nbsp;353 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN LARGE CAP FUND | &nbsp;&nbsp;355 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN LARGE CAP FUND | &nbsp;&nbsp;354 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN LARGE CAP FUND | &nbsp;&nbsp;401 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN SMALL CAP FUND | &nbsp;&nbsp;163 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN SMALL CAP FUND | &nbsp;&nbsp;146 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN SMALL CAP FUND | &nbsp;&nbsp;757 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN SMALL CAP FUND | &nbsp;&nbsp;758 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN SMALL CAP FUND | &nbsp;&nbsp;759 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN SMALL CAP FUND | &nbsp;&nbsp;154 | &nbsp;&nbsp;R |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES MDT MID CAP GROWTH FUND | &nbsp;&nbsp;677 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT MID CAP GROWTH FUND | &nbsp;&nbsp;650 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT MID CAP GROWTH FUND | &nbsp;&nbsp;656 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT MID CAP GROWTH FUND | &nbsp;&nbsp;679 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;9/1/2008 |  | &nbsp;&nbsp;FEDERATED HERMES PRUDENT BEAR FUND | &nbsp;&nbsp;409 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRUDENT BEAR FUND | &nbsp;&nbsp;415 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRUDENT BEAR FUND | &nbsp;&nbsp;418 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;12/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC VALUE DIVIDEND | &nbsp;&nbsp;661 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC VALUE DIVIDEND | &nbsp;&nbsp;663 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC VALUE DIVIDEND | &nbsp;&nbsp;662 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC VALUE DIVIDEND | &nbsp;&nbsp;251 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Equity Income Fund Inc. |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EQUITY INCOME FUND | &nbsp;&nbsp;34 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EQUITY INCOME FUND | &nbsp;&nbsp;629 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EQUITY INCOME FUND | &nbsp;&nbsp;241 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EQUITY INCOME FUND | &nbsp;&nbsp;326 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EQUITY INCOME FUND | &nbsp;&nbsp;849 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EQUITY INCOME FUND | &nbsp;&nbsp;304 | &nbsp;&nbsp;F |
|  | &nbsp;&nbsp;Federated Hermes Fixed Income Securities, Inc.: |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES MUNI ULTRASHORT FUND | &nbsp;&nbsp;253 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI ULTRASHORT FUND | &nbsp;&nbsp;254 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI ULTRASHORT FUND | &nbsp;&nbsp;230 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC INCOME FUND | &nbsp;&nbsp;652 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC INCOME FUND | &nbsp;&nbsp;382 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC INCOME FUND | &nbsp;&nbsp;383 | &nbsp;&nbsp;F |
|  |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC INCOME FUND | &nbsp;&nbsp;381 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC INCOME FUND | &nbsp;&nbsp;414 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES STRATEGIC INCOME FUND | &nbsp;&nbsp;653 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;6/1/2008 | &nbsp;&nbsp;Federated Hermes Global Allocation Fund |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL ALLOCATION FUND | &nbsp;&nbsp;373 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL ALLOCATION FUND | &nbsp;&nbsp;608 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL ALLOCATION FUND | &nbsp;&nbsp;894 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL ALLOCATION FUND | &nbsp;&nbsp;232 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL ALLOCATION FUND | &nbsp;&nbsp;11 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL ALLOCATION FUND | &nbsp;&nbsp;879 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Government Income Securities, Inc. |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOV INCOME SECURITIES | &nbsp;&nbsp;166 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOV INCOME SECURITIES | &nbsp;&nbsp;171 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOV INCOME SECURITIES | &nbsp;&nbsp;21 | &nbsp;&nbsp;F |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOV INCOME SECURITIES | &nbsp;&nbsp;615 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Government Income Trust |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT INCOME FUND | &nbsp;&nbsp;36 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT INCOME FUND | &nbsp;&nbsp;102 | &nbsp;&nbsp;SS |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes High Income Bond Fund, Inc. |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES HIGH INCOME BOND FUND | &nbsp;&nbsp;630 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES HIGH INCOME BOND FUND | &nbsp;&nbsp;492 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES HIGH INCOME BOND FUND | &nbsp;&nbsp;242 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES HIGH INCOME BOND FUND | &nbsp;&nbsp;317 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES HIGH INCOME BOND FUND | &nbsp;&nbsp;491 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes High Yield Trust: |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES OPPORTNSTC HI-YLD BND | &nbsp;&nbsp;77 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES OPPORTNSTC HI-YLD BND | &nbsp;&nbsp;113 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES OPPORTNSTC HI-YLD BND | &nbsp;&nbsp;120 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES OPPORTNSTC HI-YLD BND | &nbsp;&nbsp;430 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES OPPORTNSTC HI-YLD BND | &nbsp;&nbsp;38 | &nbsp;&nbsp;SS |
|  | &nbsp;&nbsp;Federated Hermes Income Securities Trust: |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL INCOME FUND | &nbsp;&nbsp;312 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL INCOME FUND | &nbsp;&nbsp;631 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL INCOME FUND | &nbsp;&nbsp;244 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL INCOME FUND | &nbsp;&nbsp;374 | &nbsp;&nbsp;F |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL INCOME FUND | &nbsp;&nbsp;300 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL INCOME FUND | &nbsp;&nbsp;830 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;9/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES FLTG RATE STR INCOME FUND | &nbsp;&nbsp;701 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES FLTG RATE STR INCOME FUND | &nbsp;&nbsp;693 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES FLTG RATE STR INCOME FUND | &nbsp;&nbsp;687 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES FLTG RATE STR INCOME FUND | &nbsp;&nbsp;188 | &nbsp;&nbsp;A1 |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES FUND U.S. GOV SECURITIES | &nbsp;&nbsp;601 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES FUND U.S. GOV SECURITIES | &nbsp;&nbsp;238 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES FUND U.S. GOV SECURITIES | &nbsp;&nbsp;309 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES FUND U.S. GOV SECURITIES | &nbsp;&nbsp;614 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES INTERM CORP BOND FUND | &nbsp;&nbsp;303 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERM CORP BOND FUND | &nbsp;&nbsp;348 | &nbsp;&nbsp;SS |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES MUNI & STOCK ADVT FUND | &nbsp;&nbsp;888 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI & STOCK ADVT FUND | &nbsp;&nbsp;887 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI & STOCK ADVT FUND | &nbsp;&nbsp;889 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI & STOCK ADVT FUND | &nbsp;&nbsp;901 | &nbsp;&nbsp;F |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI & STOCK ADVT FUND | &nbsp;&nbsp;876 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;12/1/2005 |  | &nbsp;&nbsp;FEDERATED HERMES INFL PROTECTED SEC FD | &nbsp;&nbsp;183 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INFL PROTECTED SEC FD | &nbsp;&nbsp;184 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INFL PROTECTED SEC FD | &nbsp;&nbsp;185 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INFL PROTECTED SEC FD | &nbsp;&nbsp;327 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/18/2004 |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-TERM INCOME FUND | &nbsp;&nbsp;292 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-TERM INCOME FUND | &nbsp;&nbsp;65 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-TERM INCOME FUND | &nbsp;&nbsp;638 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-TERM INCOME FUND | &nbsp;&nbsp;607 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-TERM INCOME FUND | &nbsp;&nbsp;579 | &nbsp;&nbsp;A2 |
|  | &nbsp;&nbsp;Federated Hermes Index Trust: |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES MAX-CAP INDEX FUND | &nbsp;&nbsp;39 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MAX-CAP INDEX FUND | &nbsp;&nbsp;895 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MAX-CAP INDEX FUND | &nbsp;&nbsp;281 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MAX-CAP INDEX FUND | &nbsp;&nbsp;867 | &nbsp;&nbsp;C |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES MID-CAP INDEX FUND | &nbsp;&nbsp;156 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MID-CAP INDEX FUND | &nbsp;&nbsp;153 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MID-CAP INDEX FUND | &nbsp;&nbsp;151 | &nbsp;&nbsp;SS |
|  | &nbsp;&nbsp;Federated Hermes Institutional Trust |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES GOV ULTRASHORT DUR FUND | &nbsp;&nbsp;969 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOV ULTRASHORT DUR FUND | &nbsp;&nbsp;891 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOV ULTRASHORT DUR FUND | &nbsp;&nbsp;840 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOV ULTRASHORT DUR FUND | &nbsp;&nbsp;626 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES INSTL HIGH YIELD BOND FUND | &nbsp;&nbsp;900 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSTL HIGH YIELD BOND FUND | &nbsp;&nbsp;221 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;6/1/2005 |  | &nbsp;&nbsp;FEDERATED HERMES SH-INT TOTAL RETURN BOND | &nbsp;&nbsp;114 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SH-INT TOTAL RETURN BOND | &nbsp;&nbsp;63 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SH-INT TOTAL RETURN BOND | &nbsp;&nbsp;107 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SH-INT TOTAL RETURN BOND | &nbsp;&nbsp;127 | &nbsp;&nbsp;R6 |
|  | &nbsp;&nbsp;Federated Hermes Insurance Series |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES MANAGED VOLATILITY FUND II | &nbsp;&nbsp;333 | &nbsp;&nbsp;P |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MANAGED VOLATILITY FUND II | &nbsp;&nbsp;403 | &nbsp;&nbsp;S |
|  |  | &nbsp;&nbsp;FEDERATED HERMES FUND U.S. GOV SECURITIES II | &nbsp;&nbsp;334 | &nbsp;&nbsp;-- |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVT MONEY FUND II | &nbsp;&nbsp;330 | &nbsp;&nbsp;S |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES HIGH INCOME BOND II | &nbsp;&nbsp;250 | &nbsp;&nbsp;S |
|  |  | &nbsp;&nbsp;FEDERATED HERMES HIGH INCOME BOND II | &nbsp;&nbsp;336 | &nbsp;&nbsp;P |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN FUND II | &nbsp;&nbsp;953 | &nbsp;&nbsp;P |
|  |  | &nbsp;&nbsp;FEDERATED HERMES KAUFMANN FUND II | &nbsp;&nbsp;957 | &nbsp;&nbsp;S |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES QUALITY BOND II | &nbsp;&nbsp;921 | &nbsp;&nbsp;P |
|  |  | &nbsp;&nbsp;FEDERATED HERMES QUALITY BOND II | &nbsp;&nbsp;929 | &nbsp;&nbsp;S |
|  | &nbsp;&nbsp;Federated Hermes International Series, Inc.: |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL TOTAL RETURN BOND FD | &nbsp;&nbsp;152 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL TOTAL RETURN BOND FD | &nbsp;&nbsp;240 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GLOBAL TOTAL RETURN BOND FD | &nbsp;&nbsp;316 | &nbsp;&nbsp;A |
|  | &nbsp;&nbsp;Federated Hermes Investment Series Funds, Inc.: |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CORPORATE BOND FUND | &nbsp;&nbsp;641 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CORPORATE BOND FUND | &nbsp;&nbsp;642 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CORPORATE BOND FUND | &nbsp;&nbsp;643 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CORPORATE BOND FUND | &nbsp;&nbsp;655 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CORPORATE BOND FUND | &nbsp;&nbsp;671 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CORPORATE BOND FUND | &nbsp;&nbsp;198 | &nbsp;&nbsp;F |
|  | &nbsp;&nbsp;Federated Hermes Managed Pool Series: |  |  |  |
| &nbsp;&nbsp;12/1/2005 |  | &nbsp;&nbsp;FEDERATED HERMES CORPORATE BOND STRATEGY PORTFOLIO | &nbsp;&nbsp;157 |  |
| &nbsp;&nbsp;12/1/2005 |  | &nbsp;&nbsp;FEDERATED HERMES HIGH-YIELD STRATEGY PORTFOLIO | &nbsp;&nbsp;744 |  |
| &nbsp;&nbsp;12/1/2005 |  | &nbsp;&nbsp;FEDERATED HERMES INTL BOND STRATEGY PORT | &nbsp;&nbsp;742 |  |
| &nbsp;&nbsp;12/1/2014 |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL DIV STRATEGY | &nbsp;&nbsp;569 |  |
| &nbsp;&nbsp;12/1/2005 |  | &nbsp;&nbsp;FEDERATED HERMES MORTGAGE STRATEGY PORT | &nbsp;&nbsp;743 |  |
|  | &nbsp;&nbsp;Federated Hermes MDT Series: |  |  |  |
| &nbsp;&nbsp;7/31/2006 |  | &nbsp;&nbsp;FEDERATED HERMES MDT ALL CAP CORE FUND | &nbsp;&nbsp;210 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT ALL CAP CORE FUND | &nbsp;&nbsp;224 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT ALL CAP CORE FUND | &nbsp;&nbsp;226 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT ALL CAP CORE FUND | &nbsp;&nbsp;233 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/31/2006 |  | &nbsp;&nbsp;FEDERATED HERMES MDT BALANCED FUND | &nbsp;&nbsp;285 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT BALANCED FUND | &nbsp;&nbsp;296 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT BALANCED FUND | &nbsp;&nbsp;297 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT BALANCED FUND | &nbsp;&nbsp;314 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/31/2006 |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP GROWTH FUND | &nbsp;&nbsp;265 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP GROWTH FUND | &nbsp;&nbsp;271 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP GROWTH FUND | &nbsp;&nbsp;267 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT LARGE CAP GROWTH FUND | &nbsp;&nbsp;269 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/31/2006 |  | &nbsp;&nbsp;FEDERATED HERMES MDT SMALL CAP CORE FUND | &nbsp;&nbsp;237 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT SMALL CAP CORE FUND | &nbsp;&nbsp;245 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT SMALL CAP CORE FUND | &nbsp;&nbsp;255 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT SMALL CAP CORE FUND | &nbsp;&nbsp;223 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/31/2006 |  | &nbsp;&nbsp;FEDERATED HERMES MDT SMALL CAP GROWTH FUND | &nbsp;&nbsp;282 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT SMALL CAP GROWTH FUND | &nbsp;&nbsp;283 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT SMALL CAP GROWTH FUND | &nbsp;&nbsp;284 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MDT SMALL CAP GROWTH FUND | &nbsp;&nbsp;231 | &nbsp;&nbsp;R6 |
|  | &nbsp;&nbsp;Federated Hermes Municipal Bond Fund, Inc: |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL BOND FUND INC. | &nbsp;&nbsp;141 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL BOND FUND INC. | &nbsp;&nbsp;375 | &nbsp;&nbsp;F |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL BOND FUND INC. | &nbsp;&nbsp;602 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL BOND FUND INC. | &nbsp;&nbsp;243 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL BOND FUND INC. | &nbsp;&nbsp;384 | &nbsp;&nbsp;A |
|  | &nbsp;&nbsp;Federated Hermes Municipal Securities Income Trust: |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES MICHIGAN INTERM MUNICIPAL FUND | &nbsp;&nbsp;145 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MICHIGAN INTERM MUNICIPAL FUND | &nbsp;&nbsp;622 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;6/1/2006 |  | &nbsp;&nbsp;FEDERATED HERMES MUNI HIGH YIELD ADVT FUND | &nbsp;&nbsp;310 | &nbsp;&nbsp;F |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI HIGH YIELD ADVT FUND | &nbsp;&nbsp;214 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI HIGH YIELD ADVT FUND | &nbsp;&nbsp;167 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI HIGH YIELD ADVT FUND | &nbsp;&nbsp;170 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNI HIGH YIELD ADVT FUND | &nbsp;&nbsp;380 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES OHIO MUNI INCOME | &nbsp;&nbsp;164 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES OHIO MUNI INCOME | &nbsp;&nbsp;313 | &nbsp;&nbsp;F |
|  |  | &nbsp;&nbsp;FEDERATED HERMES OHIO MUNI INCOME | &nbsp;&nbsp;623 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES PENNSYLVANIA MUNI INCOME | &nbsp;&nbsp;311 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PENNSYLVANIA MUNI INCOME | &nbsp;&nbsp;673 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Short- Intermediate Duration Municipal Trust |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SH-INT MUNI FUND | &nbsp;&nbsp;291 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SH-INT MUNI FUND | &nbsp;&nbsp;24 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SH-INT MUNI FUND | &nbsp;&nbsp;289 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SH-INT MUNI FUND | &nbsp;&nbsp;84 | &nbsp;&nbsp;A2 |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Total Return Government Bond Fund |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN GOVT BOND FUND | &nbsp;&nbsp;234 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN GOVT BOND FUND | &nbsp;&nbsp;648 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN GOVT BOND FUND | &nbsp;&nbsp;647 | &nbsp;&nbsp;IS |
|  | &nbsp;&nbsp;Federated Hermes Total Return Series, Inc.: |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES CORE BOND FUND | &nbsp;&nbsp;835 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CORE BOND FUND | &nbsp;&nbsp;837 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CORE BOND FUND | &nbsp;&nbsp;890 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN BOND FUND | &nbsp;&nbsp;328 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN BOND FUND | &nbsp;&nbsp;288 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN BOND FUND | &nbsp;&nbsp;893 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN BOND FUND | &nbsp;&nbsp;225 | &nbsp;&nbsp;R6 |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN BOND FUND | &nbsp;&nbsp;404 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN BOND FUND | &nbsp;&nbsp;405 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TOTAL RETURN BOND FUND | &nbsp;&nbsp;406 | &nbsp;&nbsp;C |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES ULTRASHORT BOND FUND | &nbsp;&nbsp;218 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES ULTRASHORT BOND FUND | &nbsp;&nbsp;838 | &nbsp;&nbsp;ss |
|  |  | &nbsp;&nbsp;FEDERATED HERMES ULTRASHORT BOND FUND | &nbsp;&nbsp;108 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES ULTRASHORT BOND FUND | &nbsp;&nbsp;344 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Short-Term Government Trust |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-TERM GOV'T FUND | &nbsp;&nbsp;100 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-TERM GOV'T FUND | &nbsp;&nbsp;9 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Short-Intermediate Government Trust |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-INTERMEDIATE GOV'T FUND | &nbsp;&nbsp;192 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-INTERMEDIATE GOV'T FUND | &nbsp;&nbsp;896 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES SHORT-INTERMEDIATE GOV'T FUND | &nbsp;&nbsp;47 | &nbsp;&nbsp;IS |
|  | &nbsp;&nbsp;Federated Hermes World Investment Series, Inc.: |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES EMERGING MARKET DEBT FUND | &nbsp;&nbsp;831 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EMERGING MARKET DEBT FUND | &nbsp;&nbsp;609 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES EMERGING MARKET DEBT FUND | &nbsp;&nbsp;611 | &nbsp;&nbsp;C |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL LEADERS FUND | &nbsp;&nbsp;103 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL LEADERS FUND | &nbsp;&nbsp;104 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL LEADERS FUND | &nbsp;&nbsp;105 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL LEADERS FUND | &nbsp;&nbsp;119 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL LEADERS FUND | &nbsp;&nbsp;106 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERNATIONAL LEADERS FUND | &nbsp;&nbsp;110 | &nbsp;&nbsp;R6 |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES INTL SMALL-MID COMPANY FUND | &nbsp;&nbsp;695 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTL SMALL-MID COMPANY FUND | &nbsp;&nbsp;697 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTL SMALL-MID COMPANY FUND | &nbsp;&nbsp;682 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 | &nbsp;&nbsp;Federated Hermes Intermediate Municipal Trust |  |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERMEDIATE MUNI FUND | &nbsp;&nbsp;78 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INTERMEDIATE MUNI FUND | &nbsp;&nbsp;739 | &nbsp;&nbsp;IS |
|  | &nbsp;&nbsp;Federated Hermes Money Market Obligations Trust: |  |  |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES CALIFORNIA MUNI CASH TRUST | &nbsp;&nbsp;80 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CALIFORNIA MUNI CASH TRUST | &nbsp;&nbsp;800 | &nbsp;&nbsp;WS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CALIFORNIA MUNI CASH TRUST | &nbsp;&nbsp;280 | &nbsp;&nbsp;CII |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CALIFORNIA MUNI CASH TRUST | &nbsp;&nbsp;809 | &nbsp;&nbsp;CAP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CALIFORNIA MUNI CASH TRUST | &nbsp;&nbsp;810 | &nbsp;&nbsp;CS |
| &nbsp;&nbsp;12/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL RESERVES FUND | &nbsp;&nbsp;806 |  |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;386 | &nbsp;&nbsp;CS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;385 | &nbsp;&nbsp;CII |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;805 | &nbsp;&nbsp;CAP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;158 | &nbsp;&nbsp;ADM |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;117 | &nbsp;&nbsp;PRM |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;5 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;703 | &nbsp;&nbsp;TR |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;395 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;7 | &nbsp;&nbsp;SEL |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;484 | &nbsp;&nbsp;AVR |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT OBLIGATIONS FUND | &nbsp;&nbsp;707 | &nbsp;&nbsp;SDG |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES GOVT OBLIGATIONS TAX-MGD FD | &nbsp;&nbsp;613 | &nbsp;&nbsp;AS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVT OBLIGATIONS TAX-MGD FD | &nbsp;&nbsp;636 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVT OBLIGATIONS TAX-MGD FD | &nbsp;&nbsp;637 | &nbsp;&nbsp;ss |
| &nbsp;&nbsp;12/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT RESERVES FUND | &nbsp;&nbsp;970 | &nbsp;&nbsp;A |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT RESERVES FUND | &nbsp;&nbsp;971 | &nbsp;&nbsp;B |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT RESERVES FUND | &nbsp;&nbsp;972 | &nbsp;&nbsp;C |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT RESERVES FUND | &nbsp;&nbsp;807 | &nbsp;&nbsp;p |
|  |  | &nbsp;&nbsp;FEDERATED HERMES GOVERNMENT RESERVES FUND | &nbsp;&nbsp;973 | &nbsp;&nbsp;F |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL MMKT MGMT | &nbsp;&nbsp;136 | &nbsp;&nbsp;CAP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL MMKT MGMT | &nbsp;&nbsp;349 | &nbsp;&nbsp;EAG |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL MMKT MGMT | &nbsp;&nbsp;58 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL MMKT MGMT | &nbsp;&nbsp;219 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSITUTIONAL PRIME OBLIGATIONS FUND | &nbsp;&nbsp;10 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSITUTIONAL PRIME OBLIGATIONS FUND | &nbsp;&nbsp;143 | &nbsp;&nbsp;CAP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSITUTIONAL PRIME OBLIGATIONS FUND | &nbsp;&nbsp;396 | &nbsp;&nbsp;SS |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL OBLIGATIONS FUND | &nbsp;&nbsp;858 | &nbsp;&nbsp;CAP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL OBLIGATIONS FUND | &nbsp;&nbsp;821 | &nbsp;&nbsp;cs |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL OBLIGATIONS FUND | &nbsp;&nbsp;820 | &nbsp;&nbsp;CII |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL OBLIGATIONS FUND | &nbsp;&nbsp;852 | &nbsp;&nbsp;WS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL OBLIGATIONS FUND | &nbsp;&nbsp;839 | &nbsp;&nbsp;IV |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL OBLIGATIONS FUND | &nbsp;&nbsp;855 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES MUNICIPAL OBLIGATIONS FUND | &nbsp;&nbsp;833 | &nbsp;&nbsp;AS |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES NEW YORK MUNI CASH TRUST | &nbsp;&nbsp;878 | &nbsp;&nbsp;CS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES NEW YORK MUNI CASH TRUST | &nbsp;&nbsp;12 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES NEW YORK MUNI CASH TRUST | &nbsp;&nbsp;825 | &nbsp;&nbsp;WS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES NEW YORK MUNI CASH TRUST | &nbsp;&nbsp;111 | &nbsp;&nbsp;CII |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;857 | &nbsp;&nbsp;CAP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;911 | &nbsp;&nbsp;CII |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;851 | &nbsp;&nbsp;WS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;854 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;909 | &nbsp;&nbsp;AS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;914 | &nbsp;&nbsp;R |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;913 | &nbsp;&nbsp;CS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;915 | &nbsp;&nbsp;TR |
|  |  | &nbsp;&nbsp;FEDERATED HERMES PRIME CASH OBLIGATIONS FD | &nbsp;&nbsp;485 | &nbsp;&nbsp;AVR |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL PRIME VAL OBL | &nbsp;&nbsp;859 | &nbsp;&nbsp;CAP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL PRIME VAL OBL | &nbsp;&nbsp;853 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL PRIME VAL OBL | &nbsp;&nbsp;856 | &nbsp;&nbsp;SS |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES TAX-FREE OBLIGATIONS FUND | &nbsp;&nbsp;15 | &nbsp;&nbsp;WS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TAX-FREE OBLIGATIONS FUND | &nbsp;&nbsp;397 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TAX-FREE OBLIGATIONS FUND | &nbsp;&nbsp;486 | &nbsp;&nbsp;AVR |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL TX-FREE CSH TR | &nbsp;&nbsp;42 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL TX-FREE CSH TR | &nbsp;&nbsp;73 | &nbsp;&nbsp;PRM |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES TREASURY OBLIGATIONS FUND | &nbsp;&nbsp;115 | &nbsp;&nbsp;AS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TREASURY OBLIGATIONS FUND | &nbsp;&nbsp;862 | &nbsp;&nbsp;CAP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TREASURY OBLIGATIONS FUND | &nbsp;&nbsp;68 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TREASURY OBLIGATIONS FUND | &nbsp;&nbsp;398 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TREASURY OBLIGATIONS FUND | &nbsp;&nbsp;702 | &nbsp;&nbsp;TR |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES TR FOR U.S. TRSY OBLIGATIONS | &nbsp;&nbsp;54 | &nbsp;&nbsp;CS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TR FOR U.S. TRSY OBLIGATIONS | &nbsp;&nbsp;52 | &nbsp;&nbsp;CII |
|  |  | &nbsp;&nbsp;FEDERATED HERMES TR FOR U.S. TRSY OBLIGATIONS | &nbsp;&nbsp;59 | &nbsp;&nbsp;IS |
| &nbsp;&nbsp;7/1/2004 |  | &nbsp;&nbsp;FEDERATED HERMES U.S. TREASURY CASH RSV | &nbsp;&nbsp;632 | &nbsp;&nbsp;SS |
|  |  | &nbsp;&nbsp;FEDERATED HERMES U.S. TREASURY CASH RSV | &nbsp;&nbsp;125 | &nbsp;&nbsp;IS |
|  |  | &nbsp;&nbsp;COLLECTIVE TRUSTS |  |  |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL PRESERVATION FUND | &nbsp;&nbsp;4 | &nbsp;&nbsp;ISP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL PRESERVATION FUND | &nbsp;&nbsp;25 | &nbsp;&nbsp;RP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL PRESERVATION FUND | &nbsp;&nbsp;26 | &nbsp;&nbsp;SP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL PRESERVATION FUND | &nbsp;&nbsp;27 | &nbsp;&nbsp;Y |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL PRESERVATION FUND | &nbsp;&nbsp;35 | &nbsp;&nbsp;R6P |
|  |  | &nbsp;&nbsp;FEDERATED HERMES CAPITAL PRESERVATION FUND | &nbsp;&nbsp;40 | &nbsp;&nbsp;IP |
|  |  | &nbsp;&nbsp;FEDERATED HERMES INSTITUTIONAL FIXED INCOME FUND | &nbsp;&nbsp;45 |  |

---

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| | |
|:---|:---|
| DST Asset Manager Solutions, Inc. | By each of the Federated Hermes Funds listed on Schedule A (other than Collective Trusts), severally and not jointly. |
| By: /s/ Nick Wright | By: /s/ Peter Germain |
| Name: Nick Wright | Name: Peter Germain |
| Title: Authorized Signatory | Title: Secretary |

---

---

| |
|:---|
| By each of the Federated Hermes Funds that are Collective Trusts, severally and not jointly. |
| &nbsp;&nbsp; <br> By: /s/ Richard A. Novak |
| Name: Richard A. Novak |
| Title: President |

---

------

[1](#note_ftnref1) The accounts, transactions, items and activity reviewed in each case are subject to certain standard exclusions as set forth in written procedures of DST, which have been made available to the Fund and which may be modified from time to time.

## Ex-99.H

Exhibit 28 (h) (4) (b) under Form N-1A<br> Exhibit (10) under Item 601/REG. S-K

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AGREEMENT dated as of March 1, 2011 is made, severally and not jointly (except that the parties agree that the calculation required by paragraph 31 hereunder shall be joint and not several) by and between the registered investment companies listed on Schedule I to this Agreement, as it may be amended from time to time (each stand-alone registered investment company and each series company of a registered investment company a "Fund" and collectively the "Funds") and The Bank of New York Mellon, a New York corporation authorized to do a banking business, having its principal place of business at One Wall Street, New York, New York 10286 (hereinafter called the "Bank").

<u>WITNESSETH:</u>

In consideration of the mutual agreements herein contained, the Funds and the Bank hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Funds hereby appoint the Bank to perform the duties hereinafter set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Bank hereby accepts appointment and agrees to perform the duties hereinafter set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Subject to the provisions of paragraphs 4 and 5 below, the Bank shall compute the net asset value per share of each class of shares of each Fund listed on Schedule I hereto (all references to "Fund" shall be deemed to include all classes of the Fund) and shall value the securities held by each Fund (the "Securities") at such times and dates and in the manner specified in the then currently effective registration statement or offering memorandum (the "Offering Materials") of each Fund, except that notwithstanding any language in the Offering Materials, in no event shall the Bank be required to determine, or have any obligations with respect to, whether a market price represents any fair or true value, nor to adjust any price to reflect any events or announcements, including, without limitation, those with respect to the issuer thereof, it being agreed that all such determinations and considerations shall be solely for each Fund. However, the Bank agrees to incorporate into its calculation of a Fund's net asset value any price or factor given by a Fund or by a third party valuation service upon instruction by a Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. To the extent valuation of Securities or computation of a Fund's net asset value as specified in the Fund's then currently effective Offering Materials is at any time inconsistent with any applicable laws or regulations, the Fund shall immediately so notify the Bank in writing and thereafter shall either furnish the Bank at all appropriate times with the values of such Securities and each Fund's net asset value, or subject to the prior approval of the Bank, instruct the Bank in writing to value the Securities and compute each Fund's net asset value in a manner which the Fund then represents in writing to be consistent with all applicable laws and regulations. A Fund may also from time to time, subject to the prior approval of the Bank, instruct the Bank in writing to compute the value of the Securities or a Fund's net asset value in a manner other than as specified in paragraph 3 of this Agreement. By giving such instruction, the Fund shall be deemed to have represented that such instruction is consistent with all applicable laws and regulations and the then currently effective Offering Materials of the Fund. The Fund shall have sole responsibility for determining the method of valuation of Securities and the method of computing each Fund's net asset value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Fund shall furnish the Bank with any and all instructions, explanations, information, specifications and documentation as deemed reasonably necessary by the Bank in the performance of its duties hereunder, including, without limitation, the amounts or written formula for calculating the amounts and times of accrual of Fund's liabilities and expenses. The Bank shall not be required to include as a Fund's liabilities and expenses, nor as a reduction of net asset value, any accrual for any federal, state, or foreign income taxes unless the Fund shall have specified to the Bank the precise amount of the same to be included in liabilities and expenses or used to reduce net asset value. In calculating the prices for Securities the Bank will use the price services authorized by an authorized person for a Fund listed on Appendix B to this Agreement ("Authorized Persons List"). Such authorized person shall provide the list of authorized pricing services to the Bank in a writing signed by such authorized person substantially in the form of Appendix C to this Agreement. The Bank shall be entitled to rely on the last Appendix C signed by an authorized person actually received by the Bank. A Fund shall also furnish the Bank with bid, offer, or market values of Securities if the Bank notifies the Fund that same are not available to the Bank from a Fund's Authorized Pricing Services. At any time and from time to time, a Fund also may furnish the Bank with bid, offer, or market values of Securities and instruct the Bank to use such information in its calculations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Bank shall advise the Fund, the Fund's custodian and the Fund's transfer agent of the net asset value of each Fund upon completion of the computations required to be made by the Bank pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The Bank shall, as agent for the Fund, maintain and keep current the books, accounts and other documents, if any, and perform the additional duties, listed in Appendix A hereto and made a part hereof, as such Appendix A may be amended from time to time. Such books, accounts and other documents shall be made available upon reasonable request for inspection by officers, employees and auditors of a Fund during the Bank's normal business hours, and shall be preserved for a period of seven (7) years. The Bank and the Fund's intend to enter into a Service Level Guidelines Agreement ("SLA"), that may be amended from time to time by the parties, that will outline the Fund's expectations with respect to specific services to be provided by the Bank and the operational mechanics of providing such services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. All records maintained and preserved by the Bank pursuant to this Agreement which a Fund is required to maintain and preserve in accordance with the above-mentioned Rules shall be and remain the property of a Fund and shall be surrendered to a Fund promptly upon request in the form in which such records have been maintained and preserved. Upon reasonable request of a Fund, the Bank shall provide in hard copy or electronic format, whichever the Bank shall elect, any records included in any such delivery which are maintained by the Bank on a computer disc, or are similarly maintained, and a Fund shall reimburse the Bank for its expenses of providing the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The Bank, in performing the services required of it under the terms of this Agreement, shall be entitled to rely fully on the accuracy and validity of any and all instructions, explanations, information, specifications and documentation furnished to it by the Fund and shall have no duty or obligation to review the accuracy, validity or propriety of such instructions, explanations, information, specifications or documentation, including, without limitation, evaluations of Securities; the amounts or formula for calculating the amounts and times of accrual of a Fund's liabilities and expenses; the amounts receivable and the amounts payable on the sale or purchase of Securities; the amounts receivable or amounts payable for the sale or redemption of Fund shares effected by or on behalf of the Fund. In the event the Bank's computations hereunder rely, in whole or in part, upon information, including, without limitation, bid, offer or market values of Securities or other assets, or accruals of interest or earnings thereon, from Authorized Pricing Services, the Bank shall not be responsible for, under any duty to inquire into, or deemed to make any assurances with respect to, the accuracy or completeness of such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The Bank shall not be required to inquire into any valuation of Securities or other assets by a Fund or any third party described in preceding paragraph 9 hereof, even though the Bank in performing services similar to the services provided pursuant to this Agreement for others may receive different valuations of the same or different securities of the same issuers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. The Bank, in performing the services required of it under the terms of this Agreement, shall not be responsible for determining whether any interest accruable to a Fund is or will be actually paid, but will accrue such interest until otherwise instructed by a Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. The Bank shall not be responsible or liable for any failure or delay in the performance of its obligations under this Agreement arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including without limitation, acts of God; earthquakes; fires; floods; wars; civil or military disturbances; sabotage; epidemics; riots; interruptions; loss, malfunctions of utilities or communication services, accidents; labor disputes; acts of civil or military authority or governmental actions. Nor shall the Bank be responsible for delays or failures to supply the information or services specified in this Agreement where such delays or failures are caused by the failure of any person(s) other than the Bank to supply any instructions, explanations, information, specifications or documentation deemed reasonably necessary by the Bank in the performance of its duties under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. No provision of this Agreement shall prevent the Bank from offering services similar or identical to those covered by this Agreement to any other corporations, associations or entities of any kind. Any and all operational procedures, techniques and devices developed by the Bank in connection with the performance of its duties and obligations under this Agreement, including those developed in conjunction with a Fund, shall be and remain the property of the Bank, and the Bank shall be free to employ such procedures, techniques and devices in connection with the performance of any other contract with any other person whether or not such contract is similar or identical to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. The Bank may, with respect to questions of law, apply to and obtain the advice and opinion of counsel to the independent trustees of a Fund or counsel that is mutually agreed upon by a Fund and Bank and shall be entitled to rely on the advice or opinion of such counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. The Bank shall be entitled to rely upon any oral instructions received by the Bank and reasonably believed by the Bank to be given by or on behalf of a Fund, even if the Bank subsequently receives written instructions contradicting such oral instructions. The books and records of the Bank with respect to the content of any oral instruction shall be binding and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Notwithstanding any other provision in this Agreement, the Bank shall have no duty or obligation with respect to, including without limitation, any duty or obligation to determine, or advise or notify a Fund of: (a) the taxable nature of any distribution or amount received or deemed received by, or payable to, a Fund; (b) the taxable nature or effect on a Fund or its shareholders of any corporate actions, class actions, tax reclaims, tax refunds, or similar events; (c) the taxable nature or taxable amount of any distribution or dividend paid, payable or deemed paid, by a Fund to its shareholders; or (d) the effect under any federal, state, or foreign income tax laws of a Fund making or not making any distribution or dividend payment, or any election with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. The Bank shall be held to a standard of reasonable care in carrying out the provisions of this Agreement except as otherwise provided in this Agreement. The Bank shall not be liable for any loss, damage or expense, including counsel fees and other costs and expenses of a defense against any claim or liability, resulting from, arising out of, or in connection with its performance hereunder, including its actions or omissions, the incompleteness or inaccuracy of any specifications or other information furnished by the Fund, or for any delays caused by circumstances beyond the Bank's control, unless such loss, damage or expense arises out of the negligence or willful misconduct of the Bank. In no event shall the Bank be liable to the Funds or any third party for special, indirect, or consequential damages, or for lost profits or loss of business, arising under or in connection with this Agreement, even if previously informed of the possibility of such damages and regardless of the form of action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. Without limiting the generality of the foregoing, the Fund shall indemnify the Bank against and save the Bank harmless from any loss, damage or expense, including counsel fees and other costs and expenses of a defense against any claim or liability, arising from any one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Errors in records or instructions, explanations, information, specifications or documentation of any kind, as the case may be, supplied to the Bank by any third party described in preceding paragraph 9 hereof or by or on behalf of a Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Action or inaction taken or omitted to be taken by the Bank pursuant to written or oral instructions of the Fund or otherwise without negligence or willful misconduct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any action taken or omitted to be taken by the Bank in good faith in accordance with the advice or opinion of counsel for the independent trustees of a Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any improper use by a Fund or its agents, distributor or investment advisor of any valuations or computations supplied by the Bank pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The method of valuation of the Securities, provided that such valuation is carried out in accordance with preceding paragraph 5 of this Agreement, and the method of computing each Fund's net asset value; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any valuations of Securities or net asset value provided by the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. In consideration for all of the services to be performed by the Bank as set forth herein the Bank shall be entitled to receive reimbursement for all out-of-pocket expenses and such compensation as may be agreed upon in writing from time to time between the Bank and the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. Attached hereto as Appendix B is a list of persons duly authorized to give any written or oral instructions, or written or oral specifications, by or on behalf of the Fund. From time to time the Fund may deliver a new Appendix B to add or delete any person and the Bank shall be entitled to rely on the last Appendix B actually received by the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. The Fund represents and warrants to the Bank that it has all requisite power to execute and deliver this Agreement, to give any written or oral instructions contemplated hereby, and to perform the actions or obligations contemplated to be performed by it hereunder, and has taken all necessary action to authorize such execution, delivery, and performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. The Bank represents and warrants to each Fund that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it has all requisite powers to execute and deliver this Agreement and to perform the actions or obligations contemplated to be performed by it hereunder, and has taken all necessary action to authorize such execution, delivery and performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it is conducting its business in material compliance with all applicable laws and requirements, both state and federal, and has obtained all regulatory licenses, approvals and consents necessary to carry on its business as now conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with the Funds' obligations under Rule 38a-1 of the Investment Company Act of 1940, as amended (the "1940 Act") the Bank agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Bank agrees to reasonably cooperate with the Funds and the Funds' Chief Compliance Officer in the administration of the Funds' compliance program ("Compliance Program") as required by the Securities and Exchange Commission ("SEC");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Bank has implemented and maintains policies and procedures reasonably designed to prevent, detect and promptly correct any violations of Federal Securities Laws with respect to services the Bank provides to the Funds ("Compliance Procedures");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Bank will provide summaries of such Compliance Procedures that may affect in any material respect, the services provided hereunder by the Bank to the Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Bank periodically reviews the adequacy of such Compliance Procedures and the effectiveness of their implementation and upon the request of a Fund, will provide the then current summaries of internal Compliance Procedures between such reviews;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) in the event that an officer or employee of the Bank administering this Agreement has actual knowledge of the occurrence of a "Material Compliance Matter" (as defined in Rule 38a-1(e)(2)) which the Bank reasonably believes is related to or will affect the Fund, the Bank will, if permitted by law and the Bank's regulators, notify the Fund of such occurrence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) except where prohibited by law, regulations or rule or as may be directed or instructed by the Bank's regulators, the Bank agrees to notify the Funds following quarter-end of any inspections by, or other inquiries received from, the SEC or any other regulatory or law enforcement agency after the date of this certification, which relate to the services provided by the Bank to the Funds hereunder. For the avoidance of doubt, such notification obligation shall be satisfied if the notice is contained in any publicly available regulatory filing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Bank will maintain throughout the term of this Agreement, such contingency plans as it reasonably believes to be necessary and appropriate to recover its operations from the occurrence of a disaster and which are consistent with any statute or regulations to which it is subject that imposes business resumption and contingency planning standards. The Bank agrees to provide the Funds with a summary of its contingency plan as it relates to the systems used to provide the services hereunder and to provide the Funds with periodic updates of such summary upon the Funds' reasonable request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Bank shall perform the services listed in Appendix A hereto, as such Appendix A may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. This Agreement shall not be assignable by a Fund without the prior written consent of the Bank, or by the Bank without the prior written consent of each Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. This Agreement shall become effective on the date first written above and shall remain in full force and effect for a period of four (4) years from the effective date of the Agreement (the "Initial Term") and shall automatically continue in full force and effect after such Initial Term unless either party terminates this Agreement by written notice to the other party at least six (6) months prior to the expiration of the Initial Term. Additionally, if the Bank (or any of its affiliates) engages in (i) any act or omission which constitutes a breach of any representation, warranty, term, or obligation contained in this Agreement, which upon notice the Bank has not cured within 5 business days or (ii) any act or omission which constitutes negligence, reckless misconduct, willful malfeasance, or lack of good faith in fulfilling the terms and obligations of this Agreement, then each Fund shall have the right to immediately terminate this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. Either party may terminate this Agreement at any time after the Initial Term upon at least ninety (90) days prior written notice to the other party. Upon the date set forth in such notice, the Bank shall deliver to the Fund all records then the property of the Fund and, upon such delivery, the Bank shall be relieved of all duties and responsibilities under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. This Agreement may not be amended or modified in any manner except by written agreement executed on behalf of both parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. All laws and rules of construction of the State of New York (other than those relating to choice of laws) shall govern the rights, duties and obligations of the parties hereto. The Fund and the Bank hereby consent to the exclusive jurisdiction of a state or federal court situated in New York City, New York in connection with any dispute arising hereunder. The Fund hereby irrevocably waives, to the fullest extent permitted by applicable law, any objection which it may now or hereafter have to the laying of venue of any such proceeding brought in such a court and any claim that such proceeding brought in such a court has been brought in an inconvenient forum. The Fund and the Bank each hereby irrevocably waives any and all rights to trial by jury in any legal proceeding arising out of or relating to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. The performance and provisions of this Agreement are intended to benefit only the Bank and each Fund, and no rights shall be granted to any other person by virtue of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. The Bank hereby represents and warrants that it has implemented and shall maintain appropriate measures designed to satisfy the requirements of federal and New York law applicable to the Bank with respect to the confidentiality of the portfolio holdings and transactions of each Fund. Upon request, the Bank shall annually make available to each such Fund such summaries or audit reports, including any SAS 70 report, as the Bank generally makes available to its similar customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30. The Bank is expressly put on notice of the limitation of liability as set forth in the Declaration of Trust of those registered investment companies which are business trusts and agrees that the obligations and liabilities assumed by a registered investment company or any Fund pursuant to this Agreement, including without limitation, any obligations or liability to indemnify the Bank, shall be limited in any case to the relevant Fund and its assets and that the Bank shall not seek satisfaction of any such obligation from the shareholders of the relevant Fund, from any other Fund nor its shareholders, from the Trustees, Officers, employees or agents of the registered investment company or Fund, or any of them. In addition, in connection with the discharge and satisfaction of any claim made by the Bank involving more than one Fund, the Trustees or Officers of such Funds shall have the exclusive right to determine the appropriate allocations of liability for any claim between or among the Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31. [ ]

**Each of the registered investment companies or series thereof listed on Schedule I to this Agreement**

By:<u>_/s/ Richard A. Novak</u>

Name: Richard A. Novak

Title: Treasurer

Attest:<u>_not attested</u>

**THE BANK OF NEW YORK MELLON**

By: <u>/s Andrew Pfeifer</u>

Name: Andrew Pfeifer

Title: Vice President

Attest:<u>_not attested</u>

**APPENDIX A TO FUND ACCOUNTING AGREEMENT**

**BETWEEN**

**THE BANK OF NEW YORK MELLON**

**AND**

**THE FEDERATED FUNDS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. The Bank of New York Mellon (the "Bank"), as agent for The Federated Funds (the "Fund"), shall maintain the following records on a daily basis for each Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Report of priced portfolio securities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Statement of net asset value per share

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. The Bank shall maintain the following records on a monthly basis for each Fund:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. General Ledger

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. General Journal

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Cash Receipts Journal

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Cash Disbursements Journal

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Subscriptions Journal

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Redemptions Journal

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Accounts Receivable Reports

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Accounts Payable Reports

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Open Subscriptions/Redemption Reports

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Transaction (Securities) Journal

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Broker Net Trades Reports

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. The Bank shall prepare a Holdings Ledger on a quarterly basis, and a Buy-Sell Ledger (Broker's Ledger) on a semiannual basis for each Fund

The above reports may be printed according to any other required frequency to meet the requirements of the Internal Revenue Service, the Securities and Exchange Commission and the Fund's Auditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. For internal control purposes, the Bank uses the Account Journals provided by The Bank of New York Mellon Custody System to record daily settlements of the following for each Fund:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Securities bought

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Securities sold

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Interest received

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Dividends received

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Capital stock sold

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Capital stock redeemed

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Other income and expenses

All portfolio purchases for the Fund are recorded to reflect expected maturity value and total cost including any prepaid interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. The Bank shall monitor the triggers used to determine when the ITG fair value pricing procedures may be invoked, as further detailed in the SLA, and inform the appropriate Federated personnel that triggers had been met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI. The Bank shall complete monthly preferred shares "asset coverage" test (as that term is defined in Section 18(h) of the Investment Company Act of 1940, as amended) following the compliance procedures contained in the SLA, as such SLA may be amended from time to time by mutual agreement of the parties (the "Compliance Procedures").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII. The Bank shall complete monthly preferred shares basic maintenance amount test for Fitch Ratings, Ltd. ("Fitch") following the Compliance Procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VIII. The Bank shall complete monthly preferred shares basic maintenance amount test for Moody's Investors Service, Inc. ("Moody's") following the Compliance Procedures.

**APPENDIX B**

The Authorized Persons List, as amended from time to time, is hereby incorporated by reference.

**CERTIFICATE OF AUTHORIZED PERSONS<br>** 

<br> [ ]

**APPENDIX C**

**FAIR PRICING AUTHORIZATION MATRIX**

[ ]

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 8/1/12)**

A. <u>Money Market Funds</u>

Federated Automated Government Cash Reserves

Federated Capital Reserves Fund

Federated Government Obligations Tax-Managed Fund

Federated Government Reserves Fund

Federated Municipal Trust

Federated U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Intermediate Municipal Trust

Federated Michigan Intermediate Municipal Trust

Federated Municipal High Yield Advantage Fund

Federated Municipal Securities Fund, Inc.

Federated Municipal Ultrashort Fund

Federated New York Municipal Income Fund

Federated Ohio Municipal Income Fund

Federated Pennsylvania Municipal Income Fund

Federated Premier Intermediate Municipal Income Fund

Federated Premier Municipal Income Fund

Federated Short-Intermediate Duration Municipal Trust

C. <u>Other Funds</u>

Federated Emerging Market Debt Fund

Federated Enhanced Treasury Income Fund

Federated Global Equity Fund

Federated InterContinental Fund

Federated International Bond Fund

Federated International Bond Strategy Portfolio

Federated International Small-Mid Company Fund

Federated International Strategic Value Dividend Fund

***Federated Prudent Absolute Return Fund*** (formerly, Federated Market Opportunity Fund)

Federated MDT Stock Trust

Federated Muni and Stock Advantage Fund

Federated Prudent DollarBear Fund

Federated Unconstrained Bond Fund

**<u>SCHEDULE II</u>**

**<u>Accounting, Administration and Custody Fee Schedule</u>**

**<u>Effective March 1, 2011</u>**

[ ]

**<u>SCHEDULE III</u>**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**<u>Security Pricing Fee Rate Card</u>** | &nbsp;&nbsp;**<u>Security Pricing Fee Rate Card</u>** | &nbsp;&nbsp;**<u>Security Pricing Fee Rate Card</u>** | &nbsp;&nbsp;**<u>Security Pricing Fee Rate Card</u>** |
| &nbsp;&nbsp;*(per day per security)* | &nbsp;&nbsp;*(per day per security)* | &nbsp;&nbsp;*(per day per security)* | &nbsp;&nbsp;*(per day per security)* |
| &nbsp;&nbsp;**Vendor** | &nbsp;&nbsp;**Asset Type** | &nbsp;&nbsp;**Asset Group** | &nbsp;&nbsp;**Daily Fee** |
| &nbsp;&nbsp;**StatPro (FRI)** | &nbsp;&nbsp;Fixed | &nbsp;&nbsp;FOREIGN BOND | &nbsp;&nbsp;0.80 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** | &nbsp;&nbsp;Derivatives | &nbsp;&nbsp;CR.DEFAULT SWAPS | &nbsp;&nbsp;4.00 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** |  | &nbsp;&nbsp;INT.RATE. SWAPS | &nbsp;&nbsp;0.50 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** |  | &nbsp;&nbsp;SWAPTION | &nbsp;&nbsp;1.00 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** | &nbsp;&nbsp;Fixed | &nbsp;&nbsp;CMO | &nbsp;&nbsp;2.00 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** |  | &nbsp;&nbsp;FHLMC | &nbsp;&nbsp;0.80 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** |  | &nbsp;&nbsp;FNMA | &nbsp;&nbsp;0.80 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** |  | &nbsp;&nbsp;FOREIGN BOND | &nbsp;&nbsp;0.80 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** |  | &nbsp;&nbsp;INTEREST ONLY BOND | &nbsp;&nbsp;0.80 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** |  | &nbsp;&nbsp;MORTGAGE RELATED | &nbsp;&nbsp;0.80 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** |  | &nbsp;&nbsp;CORPORATE BOND | &nbsp;&nbsp;0.40 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** |  | &nbsp;&nbsp;INFLATION INDEX | &nbsp;&nbsp;0.40 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** |  | &nbsp;&nbsp;PRINCIPAL ONLY BOND | &nbsp;&nbsp;0.40 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** |  | &nbsp;&nbsp;GNMA1 | &nbsp;&nbsp;0.25 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** |  | &nbsp;&nbsp;GNMA2 | &nbsp;&nbsp;0.25 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** |  | &nbsp;&nbsp;GOVERNMENT BOND | &nbsp;&nbsp;0.25 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** |  | &nbsp;&nbsp;TREASURY BILL | &nbsp;&nbsp;0.25 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** |  | &nbsp;&nbsp;TREASURY BOND | &nbsp;&nbsp;0.25 |
| &nbsp;&nbsp;**JP Morgan (Bear Stearns PricingDirect)** |  | &nbsp;&nbsp;TREASURY NOTE | &nbsp;&nbsp;0.25 |
| &nbsp;&nbsp;**IDC** | &nbsp;&nbsp;Derivatives | &nbsp;&nbsp;FUTURE | &nbsp;&nbsp;0.15 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;OPTION | &nbsp;&nbsp;0.15 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;SWAPTIONS | &nbsp;&nbsp;0.10 |
| &nbsp;&nbsp;**IDC** | &nbsp;&nbsp;Equity | &nbsp;&nbsp;FOREIGN STOCK | &nbsp;&nbsp;0.50 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;EQUITY(COMMON STOCK) | &nbsp;&nbsp;0.15 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;MUTUAL FUND | &nbsp;&nbsp;0.15 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;PREFERRED STOCK | &nbsp;&nbsp;0.15 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;RIGHT | &nbsp;&nbsp;0.15 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;WARRANTS | &nbsp;&nbsp;0.15 |
| &nbsp;&nbsp;**IDC** | &nbsp;&nbsp;Fixed | &nbsp;&nbsp;FOREIGN BOND | &nbsp;&nbsp;1.11 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;MORTGAGE RELATED | &nbsp;&nbsp;0.89 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;CONVERTIBLE BOND | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;CORPORATE BOND | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;DEMAND NOTE | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;FHLMC | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;FNMA | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;GNMA1 | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;GNMA2 | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;GOVERNMENT BOND | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;INFLATION INDEX | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;INTEREST ONLY BOND | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;PRINCIPAL ONLY BOND | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;STEPPED BOND | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;TREASURY BILL | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;TREASURY BOND | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;TREASURY NOTE | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** | &nbsp;&nbsp;Money Market | &nbsp;&nbsp;CERTIFICATE OF DEPOSIT | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;COMMERCIAL PAPER | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**IDC** |  | &nbsp;&nbsp;MONEY MARKET | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**JJ Kenny** | &nbsp;&nbsp;Money Market | &nbsp;&nbsp;MONEY MARKET | &nbsp;&nbsp;0.28 |
| &nbsp;&nbsp;**JJ Kenny** | &nbsp;&nbsp;Muni | &nbsp;&nbsp;MUNICIPAL BOND | &nbsp;&nbsp;0.60 |
| &nbsp;&nbsp;**Markit Partners** | &nbsp;&nbsp;Derivatives | &nbsp;&nbsp;Cr. Df. Swap In.Tranche | &nbsp;&nbsp;4.55 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;Swaption on CDS | &nbsp;&nbsp;3.48 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;Swaption on CDX | &nbsp;&nbsp;3.48 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;CMBX Index Swap | &nbsp;&nbsp;2.27 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;CDSwap Single Name ABS | &nbsp;&nbsp;2.27 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;ABX Index Swap | &nbsp;&nbsp;2.27 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;Volatility Swap | &nbsp;&nbsp;2.17 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;Interest Rate Swaption | &nbsp;&nbsp;1.52 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;Cr.Df.Swap Single Name | &nbsp;&nbsp;1.52 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;Cr. Default Swap Index | &nbsp;&nbsp;1.52 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;Swaption on IRS | &nbsp;&nbsp;1.45 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;Option | &nbsp;&nbsp;1.27 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;Index Option | &nbsp;&nbsp;1.27 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;Equity Option | &nbsp;&nbsp;1.27 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;Debt Option | &nbsp;&nbsp;1.27 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;Total Return Swap | &nbsp;&nbsp;1.14 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;FX / Currency Option | &nbsp;&nbsp;0.99 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;Zero Coupon IR Swap | &nbsp;&nbsp;0.99 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;Currency Swap | &nbsp;&nbsp;0.61 |
| &nbsp;&nbsp;**Markit Partners** |  | &nbsp;&nbsp;Interest Rate Swap | &nbsp;&nbsp;0.61 |
| &nbsp;&nbsp;**Muller (IDC)** | &nbsp;&nbsp;Fixed | &nbsp;&nbsp;CORPORATE BOND | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**Muller (IDC)** |  | &nbsp;&nbsp;DEMAND NOTE | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**Muller (IDC)** |  | &nbsp;&nbsp;FHLMC | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**Muller (IDC)** |  | &nbsp;&nbsp;FNMA | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**Muller (IDC)** |  | &nbsp;&nbsp;FOREIGN BOND | &nbsp;&nbsp;1.11 |
| &nbsp;&nbsp;**Muller (IDC)** |  | &nbsp;&nbsp;GOVERNMENT BOND | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**Muller (IDC)** |  | &nbsp;&nbsp;MORTGAGE RELATED | &nbsp;&nbsp;0.89 |
| &nbsp;&nbsp;**Muller (IDC)** |  | &nbsp;&nbsp;TREASURY BILL | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**Muller (IDC)** |  | &nbsp;&nbsp;TREASURY BOND | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**Muller (IDC)** |  | &nbsp;&nbsp;TREASURY NOTE | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**Muller (IDC)** | &nbsp;&nbsp;Money Market | &nbsp;&nbsp;CERTIFICATE OF DEPOSIT | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**Muller (IDC)** |  | &nbsp;&nbsp;COMMERCIAL PAPER | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**Muller (IDC)** |  | &nbsp;&nbsp;MONEY MARKET | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**Muller (IDC)** |  | &nbsp;&nbsp;TIME DEPOSITS | &nbsp;&nbsp;0.56 |
| &nbsp;&nbsp;**Muller (IDC)** | &nbsp;&nbsp;Muni | &nbsp;&nbsp;MUNICIPAL BOND | &nbsp;&nbsp;0.61 |
| &nbsp;&nbsp;**Reuters** | &nbsp;&nbsp;Derivatives | &nbsp;&nbsp;FUTURE/OPTIONS | &nbsp;&nbsp;0.10 |
| &nbsp;&nbsp;**Reuters** | &nbsp;&nbsp;Derivatives | &nbsp;&nbsp;FUTURE/OPTIONS | &nbsp;&nbsp;0.10 |
| &nbsp;&nbsp;**Reuters** | &nbsp;&nbsp;Equity | &nbsp;&nbsp;EQUITY(COMMON STOCK) | &nbsp;&nbsp;0.08 |
| &nbsp;&nbsp;**Reuters** |  | &nbsp;&nbsp;FOREIGN STOCK | &nbsp;&nbsp;0.10 |
| &nbsp;&nbsp;**Reuters** |  | &nbsp;&nbsp;PREFERRED STOCK | &nbsp;&nbsp;0.08 |
| &nbsp;&nbsp;**Reuters** |  | &nbsp;&nbsp;WARRANTS | &nbsp;&nbsp;0.08 |
| &nbsp;&nbsp;**Reuters** | &nbsp;&nbsp;Fixed | &nbsp;&nbsp;CONVERTIBLE BOND | &nbsp;&nbsp;0.50 |
| &nbsp;&nbsp;**Reuters** |  | &nbsp;&nbsp;CORPORATE BOND | &nbsp;&nbsp;0.30 |
| &nbsp;&nbsp;**Reuters** |  | &nbsp;&nbsp;FHLMC | &nbsp;&nbsp;0.15 |
| &nbsp;&nbsp;**Reuters** |  | &nbsp;&nbsp;FNMA | &nbsp;&nbsp;0.15 |
| &nbsp;&nbsp;**Reuters** |  | &nbsp;&nbsp;FOREIGN BOND | &nbsp;&nbsp;0.40 |
| &nbsp;&nbsp;**Reuters** |  | &nbsp;&nbsp;GNMA1 | &nbsp;&nbsp;0.30 |
| &nbsp;&nbsp;**Reuters** |  | &nbsp;&nbsp;GNMA2 | &nbsp;&nbsp;0.30 |
| &nbsp;&nbsp;**Reuters** |  | &nbsp;&nbsp;GOVERNMENT BOND | &nbsp;&nbsp;0.15 |
| &nbsp;&nbsp;**Reuters** |  | &nbsp;&nbsp;INFLATION INDEX | &nbsp;&nbsp;0.10 |
| &nbsp;&nbsp;**Reuters** |  | &nbsp;&nbsp;MORTGAGE RELATED | &nbsp;&nbsp;0.50 |
| &nbsp;&nbsp;**Reuters** |  | &nbsp;&nbsp;TREASURY BILL | &nbsp;&nbsp;0.15 |
| &nbsp;&nbsp;**Reuters** |  | &nbsp;&nbsp;TREASURY BOND | &nbsp;&nbsp;0.15 |
| &nbsp;&nbsp;**Reuters** |  | &nbsp;&nbsp;TREASURY NOTE | &nbsp;&nbsp;0.15 |
| &nbsp;&nbsp;**Reuters** | &nbsp;&nbsp;Money Market | &nbsp;&nbsp;MONEY MARKET | &nbsp;&nbsp;0.08 |

---

**FIRST AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS FIRST AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated March 1, 2011;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS**, the Funds and Bank desire to amend the Agreement subject to the terms and conditions set forth herein; and

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Schedule I to the Agreement is hereby amended and updated to add the following Funds, effective March 25, 2011:

<u>Muni Fixed Income Funds:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Federated Municipal Ultrashort Fund, a portfolio of Federated Fixed Income Securities, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Federated Premier Municipal Income Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Federated Premier Intermediate Municipal Income Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Federated Short-Intermediate Duration Municipal Trust

<u>Other Funds:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Federated Muni and Stock Advantage Fund, a portfolio of Federated Income Securities Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Federated International Bond Fund, a portfolio of Federated International Series, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Federated International Bond Strategy Portfolio, a portfolio of Federated Managed Pool Series

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Federated Emerging Market Debt Fund, a portfolio of Federated World Investment Series, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Federated Prudent DollarBear Fund, a portfolio of Federated Income Securities Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Federated InterContinental Fund, a portfolio of Federated Equity Funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Federated International Leaders Fund, a portfolio of Federated World Investment Series, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Federated International Small-Mid Company Fund, a portfolio of Federated World Investment Series, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Federated International Strategic Value Dividend Fund, a portfolio of Federated Equity Funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Agreement shall remain in full force and effect as amended by this Amendment.

*[Remainder of Page Intentionally Left Blank]*

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of March 25, 2011.

**On behalf of each of the Funds indicated on** 

**Schedule I of the Fund Accounting Agreement,** 

**as amended from time to time**

By: <u>/s/ Richard A. Novak</u>

Name: Richard A. Novak

Title: Treasurer

**THE BANK OF NEW YORK MELLON**

By: <u>/s/ Andrew Pfeifer</u>

Title: Vice President

**COMPLIANCE SUPPORT SERVICES ADDENDUM**

**TO**

**FUND ACCOUNTING AGREEMENT**

This Compliance Support Services Addendum is effective as of May 31, 2012 by and between the investment companies listed on Exhibit 1 to this Addendum (each a "Fund" and collectively, the "Funds") and THE BANK OF NEW YORK MELLON ("BNY Mellon").

**BACKGROUND:**

A. The Funds and BNY Mellon are parties to a certain Fund Accounting Agreement dated March 1, 2011, as amended
(the "Agreement").

B. This Addendum is intended to supplement the Agreement with regard to additional services offered by BNY
Mellon and shall be applicable solely to the Funds identified at Exhibit 1 hereto.

C. Each Fund hereby instructs BNY Mellon to provide the compliance support services ("Support Services")
described in this Addendum, and BNY Mellon acknowledges such instruction and is willing to provide such Support Services pursuant to the
terms set forth herein.

D. This Background section is hereby incorporated by reference in and made a part of this Addendum.

**TERMS:**

In consideration of the premises and mutual covenants herein contained, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. BNY Mellon shall provide, or cause its affiliates to provide, the Support Services, as they are described
at Exhibit 2 hereto, subject to all applicable terms and conditions of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. As compensation for providing the Support Services, the Funds shall pay BNY Mellon a fee or fees as may
be agreed to from time to time in writing by the parties hereto.

Each Fund hereby represents and warrants to BNY Mellon that (i) the terms of this Addendum, (ii) the fees and expenses associated with this Addendum and (iii) any benefits accruing to BNY Mellon and/or any affiliate of such Fund relating to this Addendum have been fully disclosed to the Board of Trustees of the Fund and that, if required by applicable law, such Board of Trustees has approved or will approve the terms of this Addendum, any such fees and expenses, and any such fees and expenses, and any such benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Notwithstanding any provision of this Addendum, the Support Services are not, nor shall they be construed
as constituting, legal advice or the provision of legal services for or on behalf of a Fund or any other person. Neither this Addendum
nor the provision of the Support Services establishes or is intended to establish an attorney-client relationship between BNY Mellon and
a Fund or any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. While BNY Mellon, when providing certain of the Support Services, may identify out-of-compliance conditions,
BNY Mellon does not, and could not for the fees charged, make any guarantees, representations or warranties with respect to its ability
to identify any or all such conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The parties hereto acknowledge that all work produced by BNY Mellon in providing the Support Services,
and the performance of the Support Services in general, by BNY Mellon pursuant to this Addendum will be a the request and direction of
each Fund and Fund's chief compliance officer ("CCO"). BNY Mellon disclaims liability to the Fund, and the Fund is solely
responsible, for the selection, qualifications and performance of the Fund's CCO and the adequacy and effectiveness of the Fund's
compliance program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. BNY Mellon shall not be responsible for: (a) delays in the transmission to it by the Funds, the Funds'
adviser and entities unaffiliated with BNY Mellon (collectively, for this Addendum, "Third Parties") of data required for
the Support Services, (b) inaccuracies of, errors in or omissions of, such data provided to it by any Third Party, and (c) review of such
data provided to it by any Third Party. This Section 6 is a limitation of responsibility provision for the benefit of BNY Mellon, and
shall not be used to imply any responsibility or liability against BNY Mellon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Miscellaneous</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;(a) As hereby supplemented, the Agreement shall remain in full force and effect. In the event of a conflict
between the terms of this Addendum and the terms of the Agreement, the terms of this Addendum shall control with respect to the Support
Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Addendum may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. The facsimile signature of any party to the Addendum shall constitute
the valid and binding execution hereof by such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any provision or provisions of this Addendum shall be held to be invalid, unlawful or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired.

(Signature page follows.)

**IN WITNESS WHEREOF,** the parties hereto have caused this Addendum to be executed by their duly authorized officers designated below on the date and year noted below.

**On behalf of each of the Funds indicated on Exhibit 1, as may be amended from time to time**

By: <u>/s/ Richard A. Novak</u>

Name: Richard A. Novak

Title: Treasurer

**THE BANK OF NEW YORK MELLON**

By: <u>/s/ Jay F. Nusblatt</u>

Name: Jay F. Nusblatt

Title: Head of U.S. Fund Accounting and Authorized Signer

Effective Date: May 31, 2012

**<u>EXHIBIT 1</u>**

<u>Fund/Portfolio Name</u>

A. <u>Money Market Funds</u>

Federated Automated Government Cash Reserves

Federated Capital Reserves Fund

Federated Government Obligations Tax-Managed Fund

Federated Government Reserves Fund

Federated Municipal Trust

Federated U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Intermediate Municipal Trust

Federated Michigan Intermediate Municipal Trust

Federated Municipal High Yield Advantage Fund

Federated Municipal Securities Fund, Inc.

Federated New York Municipal Income Fund

Federated Ohio Municipal Income Fund

Federated Pennsylvania Municipal Income Fund

Federated Municipal Ultrashort Fund

Federated Premier Municipal Income Fund

Federated Premier Intermediate Municipal Income Fund

Federated Short-Intermediate Duration Municipal Trust

C. <u>Other Funds</u>

Federated Enhanced Treasury Income Fund

Federated Global Equity Fund

Federated Unconstrained Bond Fund

Federated Market Opportunity Fund

Federated MDT Stock Trust

Federated Muni and Stock Advantage Fund

Federated International Bond Fund

Federated International Bond Strategy Portfolio

Federated Emerging Market Debt Fund

Federated Prudent DollarBear Fund

Federated InterContinental Fund

Federated International Leaders Fund

Federated International Small-Mid Company Fund

Federated International Strategic Value Dividend Fund

**<u>EXHIBIT 2</u>**

<u>Compliance Support Services</u>

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Description** | &nbsp;&nbsp;**Frequency** |
| &nbsp;&nbsp; 1. Provision of compliance policies and procedures for each applicable BNY Mellon line of business, summary and regulatory mapping of procedures<br>2. Certification letter attesting BNY Mellon's compliance with such policies and procedures.<br>3. Host the Fund's CCO at BNY Mellon's operations location.<br>4. CCO group meetings with Fund's CCO and other CCOs on regulatory issues and industry best practices. | &nbsp;&nbsp; Annually, with interim updates on an as-needed basis.<br>Quarterly or annually at client's request.<br>Annually.<br>Annually. |

---

THE BANK OF NEW YORK MELLON

May 31, 2012

The Federated Family of Funds

**Re: <u>Compliance Support Services Fees</u>**

Dear Sir/Madam:

This letter constitutes our agreement with respect to compensation to be paid to The Bank of New York Mellon ("BNY Mellon") under the terms of the Compliance Support Services Addendum dated on or about the date hereof (the "Addendum") to the Fund Accounting Agreement dated March 1, 2011, as amended (the "Agreement") between the investment companies listed on Exhibit 1 thereto (each a "Fund" and collectively, the "Funds") and BNY Mellon for compliance support services provided to or on behalf of the Funds as set forth on Exhibit 2 to the Addendum. The fee for the compliance support services set forth on such Exhibit 2 to the Addendum shall be $5,000 per year for the fund accounting and financial reporting service line. This fee shall be allocated evenly among the Funds.

Such fees are in addition to, and in no way affect, other fees to which the parties hereto have agreed (or in the future agree) with respect to the Agreement or any amendment thereto.

All services provided pursuant to the Addendum are provided subject to reimbursement of BNY Mellon's out-of-pocket expenses. Out-of-pocket expenses are assessed at cost and include, but are not limited to, independent compliance reviews, overnight express charges, travel costs, transmission expenses, and all other miscellaneous fees incurred on behalf of the Funds in connection with such services.

If the foregoing accurately sets forth our agreement regarding the fees for the services referred to herein and you intend to be legally bound hereby, please execute a copy of this letter and return it to BNY Mellon.

---

| |
|:---|
| &nbsp;&nbsp;Very truly yours, |
| &nbsp;&nbsp;THE BANK OF NEW YORK MELLON |
| &nbsp;&nbsp;By: <u>Jay F. Nusblatt</u> |
| &nbsp;&nbsp;Name: Jay F. Nusblatt |
| &nbsp;&nbsp;Title: Head of U.S. Fund Accounting and |
| &nbsp;&nbsp;Authorized Signer |

---

<u>Agreed and accepted:</u>

**On behalf of each of the Funds indicated on Exhibit 1 to the Addendum,<br> as may be amended from time to time.**

By: <u>/s/ Richard A. Novak</u>

Name: Richard A. Novak

Title: Treasurer

*Second amendment never completed.*

**THIRD AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated June 7, 2005, amended March 25, 2011, December 31, 2012 and April 28, 2014, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to amend the names of certain Funds to Schedule I, effective April 28, 2014; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of April 28, 2014.

---

| |
|:---|
| **On behalf of each of the Funds indicated on** |
| **Schedule I of the Fund Accounting Agreement,** |
| **as amended from time to time** |
| &nbsp;&nbsp;By: <u>/s/ Lori A. Hensler</u> |
| Name: Lori A. Hensler |
| Title: Treasurer |
| &nbsp;&nbsp;**THE BANK OF NEW YORK MELLON** |
| &nbsp;&nbsp;By: <u>/s/ Armando Fernandez</u> |
| &nbsp;&nbsp;Title: Vice President/Managing Director |

---

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 4/28/14)**

A. <u>Money Market Funds</u>

Federated Automated Government Cash Reserves

Federated Capital Reserves Fund

Federated Government Obligations Tax-Managed Fund

Federated Government Reserves Fund

Federated Municipal Trust

Federated U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Intermediate Municipal Trust

Federated Michigan Intermediate Municipal Trust

Federated Municipal High Yield Advantage Fund

Federated Municipal Securities Fund, Inc.

Federated Municipal Ultrashort Fund

Federated New York Municipal Income Fund

Federated Ohio Municipal Income Fund

Federated Pennsylvania Municipal Income Fund

Federated Premier Intermediate Municipal Income Fund

Federated Premier Municipal Income Fund

Federated Short-Intermediate Duration Municipal Trust

C. <u>Other Funds</u>

Federated Enhanced Treasury Income Fund

Federated Emerging Markets Debt Fund

***Federated Emerging Markets Equity Fund*** (formerly, Federated Global Equity Fund)

Federated InterContinental Fund

Federated International Bond Fund

Federated International Bond Strategy Portfolio

Federated International Leaders Fund

Federated International Small-Mid Company Fund

Federated International Strategic Value Dividend Fund

Federated Absolute Return Fund

Federated MDT Stock Trust

Federated Muni and Stock Advantage Fund

Federated Prudent DollarBear Fund

Federated Unconstrained Bond Fund

**FOURTH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated June 7, 2005, amended March 25, 2011, December 31, 2012, April 28, 2014, and December 1, 2014, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to add certain funds to Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of December 1, 2014.

---

| |
|:---|
| **On behalf of each of the Funds indicated on** |
| **Schedule I of the Fund Accounting Agreement,** |
| **as amended from time to time** |
| &nbsp;&nbsp;By: <u>/s/ Lori A. Hensler</u> |
| Name: Lori A. Hensler |
| Title: Treasurer |
| &nbsp;&nbsp;**THE BANK OF NEW YORK MELLON** |
| &nbsp;&nbsp;By: <u>/s/ Armando Fernandez</u> |
| &nbsp;&nbsp;Title: Vice President/Managing Director |

---

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 12/1/14)**

A. <u>Money Market Funds</u>

Federated Automated Government Cash Reserves

Federated Capital Reserves Fund

Federated Government Obligations Tax-Managed Fund

Federated Government Reserves Fund

Federated Municipal Trust

Federated U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Intermediate Municipal Trust

Federated Michigan Intermediate Municipal Trust

Federated Municipal High Yield Advantage Fund

Federated Municipal Securities Fund, Inc.

Federated Municipal Ultrashort Fund

Federated New York Municipal Income Fund

Federated Ohio Municipal Income Fund

Federated Pennsylvania Municipal Income Fund

Federated Premier Intermediate Municipal Income Fund

Federated Premier Municipal Income Fund

Federated Short-Intermediate Duration Municipal Trust

C. <u>Other Funds</u>

Federated Absolute Return Fund

Federated Emerging Markets Debt Fund

Federated Emerging Markets Equity Fund

Federated Enhanced Treasury Income Fund

Federated InterContinental Fund

Federated International Bond Fund

Federated International Bond Strategy Portfolio

***Federated International Dividend Strategy Portfolio***

Federated International Leaders Fund

Federated International Small-Mid Company Fund

Federated International Strategic Value Dividend Fund

Federated MDT Stock Trust

Federated Muni and Stock Advantage Fund

Federated Prudent DollarBear Fund

Federated Unconstrained Bond Fund

**FIFTH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated June 7, 2005, as amended, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to add certain funds to Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of June 26, 2015.

---

| |
|:---|
| **On behalf of each of the Funds indicated on** |
| **Schedule I of the Fund Accounting Agreement,** |
| **as amended from time to time** |
| &nbsp;&nbsp;By: <u>/s/ Lori A. Hensler</u> |
| Name: Lori A. Hensler |
| Title: Treasurer |
| &nbsp;&nbsp;**THE BANK OF NEW YORK MELLON** |
| &nbsp;&nbsp;By: <u>/s/ Armando Fernandez</u> |
| &nbsp;&nbsp;Title: Vice President/Managing Director |

---

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 6/25/15)**

A. Money Market Funds

Federated Automated Government Cash

Federated Capital Reserves Fund

Federated Government Obligations Tax-Managed Fund

Federated Government Reserves Fund

Federated Municipal Trust

Federated U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Intermediate Municipal Trust

Federated Michigan Intermediate Municipal Trust

Federated Municipal High Yield Advantage Fund

Federated Municipal Securities Fund, Inc.

Federated Municipal Ultrashort Fund

Federated New York Municipal Income Fund

Federated Ohio Municipal Income Fund

Federated Pennsylvania Municipal Income Fund

Federated Premier Intermediate Municipal Income Fund

Federated Premier Municipal Income Fund

Federated Short-Intermediate Duration Municipal Trust

C. <u>Other Funds</u>

Federated Absolute Return Fund

Federated Emerging Markets Debt Fund

Federated Emerging Markets Equity Fund

Federated Enhanced Treasury Income Fund

Federated InterContinental Fund

Federated International Bond Fund

Federated International Bond Strategy Portfolio

Federated International Dividend Strategy Portfolio

Federated International Leaders Fund

Federated International Small-Mid Company Fund

Federated International Strategic Value Dividend Fund

Federated MDT Stock Trust

Federated Muni and Stock Advantage Fund

Federated Prudent DollarBear Fund

**SIXTH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated March 1, 2011, as amended, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to amend the names to certain Funds and add certain Funds to Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of December 1, 2016.

---

| |
|:---|
| **On behalf of each of the Funds indicated on** |
| **Schedule I of the Fund Accounting Agreement,** |
| **as amended from time to time** |
| &nbsp;&nbsp;By: _<u>/s/ Lori A. Hensler</u> |
| Name: Lori A. Hensler |
| Title: Treasurer |
| &nbsp;&nbsp;**THE BANK OF NEW YORK MELLON** |
| &nbsp;&nbsp;By: _<u>/s/ Armando Fernandez</u>_ |
| &nbsp;&nbsp;Name: Armando Fernandez |
| &nbsp;&nbsp;Title: Vice President/Managing Director |

---

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 12/01/16)**

A. Money Market Funds

Federated Automated Government Cash

Federated Capital Reserves Fund

Federated Government Obligations Tax-Managed Fund

Federated Government Reserves Fund

Federated Municipal Trust

Federated U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Intermediate Municipal Trust

Federated Michigan Intermediate Municipal Trust

Federated Municipal High Yield Advantage Fund

Federated Municipal Securities Fund, Inc.

Federated Municipal Ultrashort Fund

Federated New York Municipal Income Fund

Federated Ohio Municipal Income Fund

Federated Pennsylvania Municipal Income Fund

Federated Premier Intermediate Municipal Income Fund

Federated Premier Municipal Income Fund

Federated Short-Intermediate Duration Municipal Trust

C. <u>Other Funds</u>

Federated Absolute Return Fund

Federated Emerging Markets Debt Fund

Federated Emerging Markets Equity Fund

Federated Enhanced Treasury Income Fund

Federated InterContinental Fund

Federated Global Strategic Value Dividend Fund

Federated Global Total Return Bond Fund (formerly Federated International Bond Fund)

Federated International Bond Strategy Portfolio

Federated International Dividend Strategy Portfolio

Federated International Leaders Fund

Federated International Small-Mid Company Fund

Federated International Strategic Value Dividend Fund

Federated MDT Large Cap Value Fund (formerly Federated MDT Stock Trust)

Federated Muni and Stock Advantage Fund

Federated Prudent DollarBear Fund

**SEVENTH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated March 1, 2011, as amended, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to amend the names to certain Funds and delete certain Funds to Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of August 1, 2017.

---

| |
|:---|
| **On behalf of each of the Funds indicated on** |
| **Schedule I of the Fund Accounting Agreement,** |
| **as amended from time to time** |
| &nbsp;&nbsp;By: _<u>/s/ Lori A. Hensler</u> |
| Name: Lori A. Hensler |
| Title: Treasurer |
| &nbsp;&nbsp;**THE BANK OF NEW YORK MELLON** |
| &nbsp;&nbsp;By: <u>/a/ Armando Fernandez</u> |
| &nbsp;&nbsp;Name: Armando Fernandez |
| &nbsp;&nbsp;Title: Vice President/Managing Director |

---

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 08/1/17)**

B. Money Market Funds

Federated Capital Reserves Fund

Federated Government Obligations Tax-Managed Fund

Federated Government Reserves Fund

Federated Municipal Trust

Federated U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Intermediate Municipal Trust

Federated Michigan Intermediate Municipal Trust

Federated Municipal High Yield Advantage Fund

***Federated Municipal Bond Fund, Inc.***

Federated Municipal Ultrashort Fund

Federated New York Municipal Income Fund

Federated Ohio Municipal Income Fund

Federated Pennsylvania Municipal Income Fund

Federated Premier Intermediate Municipal Income Fund

Federated Premier Municipal Income Fund

Federated Short-Intermediate Duration Municipal Trust

C. <u>Other Funds</u>

Federated Absolute Return Fund

Federated Emerging Markets Debt Fund

Federated InterContinental Fund

Federated Global Strategic Value Dividend Fund

Federated Global Total Return Bond Fund

Federated International Bond Strategy Portfolio

Federated International Dividend Strategy Portfolio

Federated International Leaders Fund

Federated International Small-Mid Company Fund

Federated International Strategic Value Dividend Fund

Federated MDT Large Cap Value Fund

Federated MDT Large Cap Value Fund \*

Federated Muni and Stock Advantage Fund

Federated Prudent DollarBear Fund

*\*a portfolio of Federated MDT Equity Trust to be effective August 31, 2017.*

 

 

 

 

 

 

 

**EIGHTH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated March 1, 2011, as amended, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to remove certain Funds from Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of October 1, 2017.

---

| |
|:---|
| **On behalf of each of the Funds indicated on** |
| **Schedule I of the Fund Accounting Agreement,** |
| **as amended from time to time** |
| &nbsp;&nbsp;By: __<u>/s/ Lori A. Hensler</u> |
| Name: Lori A. Hensler |
| Title: Treasurer |
| &nbsp;&nbsp;**THE BANK OF NEW YORK MELLON** |
| &nbsp;&nbsp;By: <u>/s/ Armando Fernandez</u> |
| &nbsp;&nbsp;Name: Armando Fernandez |
| &nbsp;&nbsp;Title: Vice President/Managing Director |

---

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 10/1/17)**

A. <u>Money Market Funds</u> 

Federated Capital Reserves Fund

Federated Government Obligations Tax-Managed Fund

Federated Government Reserves Fund

Federated Municipal Trust

Federated U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Intermediate Municipal Trust

Federated Michigan Intermediate Municipal Trust

Federated Municipal High Yield Advantage Fund

Federated Municipal Bond Fund, Inc.

Federated Municipal Ultrashort Fund

Federated New York Municipal Income Fund

Federated Ohio Municipal Income Fund

Federated Pennsylvania Municipal Income Fund

Federated Premier Intermediate Municipal Income Fund

Federated Premier Municipal Income Fund

Federated Short-Intermediate Duration Municipal Trust

C. <u>Other Funds</u>

Federated Absolute Return Fund

Federated Emerging Markets Debt Fund

Federated Global Strategic Value Dividend Fund

Federated Global Total Return Bond Fund

Federated International Bond Strategy Portfolio

Federated International Dividend Strategy Portfolio

Federated International Leaders Fund

Federated International Small-Mid Company Fund

Federated International Strategic Value Dividend Fund

Federated MDT Large Cap Value Fund

*Federated MDT Large Cap Value Fund \**

Federated Muni and Stock Advantage Fund

*\*a portfolio of Federated MDT Equity Trust which became effective August 31, 2017.*

 

**NINTH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated March 1, 2011, as amended, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to remove certain Funds from Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of November 1, 2017.

---

| |
|:---|
| &nbsp;&nbsp;**On behalf of each of the Funds indicated on** |
| &nbsp;&nbsp;**Schedule I of the Fund Accounting Agreement,** |
| &nbsp;&nbsp;**as amended from time to time** |
| &nbsp;&nbsp;<u>By: /s/ Lori A. Hensler</u> |
| &nbsp;&nbsp;Name: Lori A. Hensler |
| &nbsp;&nbsp;Title: Treasurer |
| &nbsp;&nbsp;**THE BANK OF NEW YORK MELLON** |
| &nbsp;&nbsp;<u>By: _/s/ Armando Fernandez</u>___________________ |
| &nbsp;&nbsp;Name: Armando Fernandez |
| &nbsp;&nbsp;Title: Vice President/Managing Director |

---

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 11/1/17)**

A. <u>Money Market Funds</u> 

Federated Capital Reserves Fund

Federated Government Obligations Tax-Managed Fund

Federated Government Reserves Fund

Federated U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Intermediate Municipal Trust

Federated Michigan Intermediate Municipal Trust

Federated Municipal High Yield Advantage Fund

Federated Municipal Bond Fund, Inc.

Federated Municipal Ultrashort Fund

Federated New York Municipal Income Fund

Federated Ohio Municipal Income Fund

Federated Pennsylvania Municipal Income Fund

Federated Premier Intermediate Municipal Income Fund

Federated Premier Municipal Income Fund

Federated Short-Intermediate Duration Municipal Trust

C. <u>Other Funds</u>

Federated Absolute Return Fund

Federated Emerging Markets Debt Fund

Federated Global Strategic Value Dividend Fund

Federated Global Total Return Bond Fund

Federated International Bond Strategy Portfolio

Federated International Dividend Strategy Portfolio

Federated International Leaders Fund

Federated International Small-Mid Company Fund

Federated International Strategic Value Dividend Fund

Federated MDT Large Cap Value Fund

*Federated MDT Large Cap Value Fund \**

Federated Muni and Stock Advantage Fund

*\*a portfolio of Federated MDT Equity Trust which became effective August 31, 2017.*

 

**TENTH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated March 1, 2011, as amended, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to ***remove*** certain Funds from Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of December 1, 2017.

---

| |
|:---|
| &nbsp;&nbsp;**On behalf of each of the Funds indicated on** |
| &nbsp;&nbsp;**Schedule I of the Fund Accounting Agreement,** |
| &nbsp;&nbsp;**as amended from time to time** |
| &nbsp;&nbsp;<u>By: /s/ Lori A. Hensler</u> |
| &nbsp;&nbsp;Name: Lori A. Hensler |
| &nbsp;&nbsp;Title: Treasurer |
| &nbsp;&nbsp;**THE BANK OF NEW YORK MELLON** |
| &nbsp;&nbsp;<u>By: /s/ Armando Fernandez_</u>__________________ |
| &nbsp;&nbsp;Name: Armando Fernandez |
| &nbsp;&nbsp;Title: Vice President/Managing Director |

---

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 12/1/17)**

A. <u>Money Market Funds</u> 

Federated Capital Reserves Fund

Federated Government Obligations Tax-Managed Fund

Federated Government Reserves Fund

Federated U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Intermediate Municipal Trust

Federated Michigan Intermediate Municipal Trust

Federated Municipal High Yield Advantage Fund

Federated Municipal Bond Fund, Inc.

Federated Municipal Ultrashort Fund

Federated New York Municipal Income Fund

Federated Ohio Municipal Income Fund

Federated Pennsylvania Municipal Income Fund

Federated Premier Municipal Income Fund

Federated Short-Intermediate Duration Municipal Trust

C. <u>Other Funds</u>

Federated Absolute Return Fund

Federated Emerging Market Debt Fund

Federated Global Strategic Value Dividend Fund

Federated Global Total Return Bond Fund

Federated International Bond Strategy Portfolio

Federated International Dividend Strategy Portfolio

Federated International Leaders Fund

Federated International Small-Mid Company Fund

Federated International Strategic Value Dividend Fund

Federated MDT Large Cap Value Fund

*Federated MDT Large Cap Value Fund \**

Federated Muni and Stock Advantage Fund

*\*a portfolio of Federated MDT Equity Trust which became effective August 31, 2017.*

**ELEVENTH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated March 1, 2011, as amended, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to ***add*** certain Funds to and ***remove*** certain Funds from Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of September 1, 2018.

---

| |
|:---|
| &nbsp;&nbsp;**On behalf of each of the Funds indicated on** |
| &nbsp;&nbsp;**Schedule I of the Fund Accounting Agreement,** |
| &nbsp;&nbsp;**as amended from time to time** |
| &nbsp;&nbsp;<u>By</u>:_<u>/s/ Lori A. Hensler</u> |
| &nbsp;&nbsp;Name: Lori A. Hensler |
| &nbsp;&nbsp;Title: Treasurer |
| &nbsp;&nbsp;**THE BANK OF NEW YORK MELLON** |
| &nbsp;&nbsp;<u>By: /s/ Armando Fernandez</u> |
| &nbsp;&nbsp;Name: Armando Fernandez |
| &nbsp;&nbsp;Title: Vice President/Managing Director |

---

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 09/01/18)**

A. <u>Money Market Funds</u> 

Federated Capital Reserves Fund

Federated Government Obligations Tax-Managed Fund

Federated Government Reserves Fund

Federated U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Intermediate Municipal Trust

Federated Michigan Intermediate Municipal Trust

Federated Municipal High Yield Advantage Fund

Federated Municipal Bond Fund, Inc.

Federated Municipal Ultrashort Fund

Federated Ohio Municipal Income Fund

Federated Pennsylvania Municipal Income Fund

Federated Premier Municipal Income Fund

Federated Short-Intermediate Duration Municipal Trust

C. <u>Other Funds</u>

Federated Absolute Return Fund

Federated Emerging Market Debt Fund

Federated Global Strategic Value Dividend Fund

Federated Global Total Return Bond Fund

*Federated Hermes SDG Engagement Equity Fund*

Federated International Bond Strategy Portfolio

Federated International Dividend Strategy Portfolio

Federated International Leaders Fund

Federated International Small-Mid Company Fund

Federated International Strategic Value Dividend Fund

Federated MDT Large Cap Value Fund

Federated Muni and Stock Advantage Fund

 

**TWELFTH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated March 1, 2011, as amended, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to ***add*** certain Funds to Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of December 1, 2018.

---

| |
|:---|
| &nbsp;&nbsp;**On behalf of each of the Funds indicated on** |
| &nbsp;&nbsp;**Schedule I of the Fund Accounting Agreement,** |
| &nbsp;&nbsp;**as amended from time to time** |
| &nbsp;&nbsp;By: <u>/s/ Deborah M. Molini</u> |
| &nbsp;&nbsp;Name: Deborah M. Molini |
| &nbsp;&nbsp;Title: Assistant Treasurer |
| &nbsp;&nbsp;**THE BANK OF NEW YORK MELLON** |
| &nbsp;&nbsp;By: <u>/s/ Armando Fernandez</u> |
| &nbsp;&nbsp;Name: Armando Fernandez |
| &nbsp;&nbsp;Title: Vice President/Managing Director |

---

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 12/01/18)**

A. <u>Money Market Funds</u>

Federated Capital Reserves Fund

Federated Government Obligations Tax-Managed Fund

Federated Government Reserves Fund

Federated U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Intermediate Municipal Trust

Federated Michigan Intermediate Municipal Trust

Federated Municipal High Yield Advantage Fund

Federated Municipal Bond Fund, Inc.

Federated Municipal Ultrashort Fund

Federated Ohio Municipal Income Fund

Federated Pennsylvania Municipal Income Fund

Federated Premier Municipal Income Fund

Federated Short-Intermediate Duration Municipal Trust

C. <u>Other Funds</u>

Federated Absolute Return Fund

Federated Emerging Market Debt Fund

Federated Global Strategic Value Dividend Fund

Federated Global Total Return Bond Fund

***Federated Hermes Absolute Credit Fund***

***Federated Hermes Global Equity Fund***

***Federated Hermes Global Small Cap Fund***

Federated Hermes SDG Engagement Equity Fund

***Federated Hermes Unconstrained Credit Fund***

Federated International Bond Strategy Portfolio

Federated International Dividend Strategy Portfolio

Federated International Leaders Fund

Federated International Small-Mid Company Fund

Federated International Strategic Value Dividend Fund

Federated MDT Large Cap Value Fund

Federated Muni and Stock Advantage Fund

**THIRTEENTH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated March 1, 2011, as amended, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to ***add*** certain Funds to Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of March 1, 2019

---

| |
|:---|
| &nbsp;&nbsp;**On behalf of each of the Funds indicated on** |
| &nbsp;&nbsp;**Schedule I of the Fund Accounting Agreement,** |
| &nbsp;&nbsp;**as amended from time to time** |
| &nbsp;&nbsp;By: <u>/s/ Deborah M. Molini</u> |
| &nbsp;&nbsp;Name: Deborah M. Molini |
| &nbsp;&nbsp;Title: Assistant Treasurer |
| &nbsp;&nbsp;**THE BANK OF NEW YORK MELLON** |
| &nbsp;&nbsp;By: <u>/s/ Armando Fernandez</u> |
| &nbsp;&nbsp;Name: Armando Fernandez |
| &nbsp;&nbsp;Title: Vice President/Managing Director |

---

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 03/01/19)**

A. <u>Money Market Funds</u>

Federated Capital Reserves Fund

Federated Government Obligations Tax-Managed Fund

Federated Government Reserves Fund

Federated U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Intermediate Municipal Trust

Federated Michigan Intermediate Municipal Trust

Federated Municipal High Yield Advantage Fund

Federated Municipal Bond Fund, Inc.

Federated Municipal Ultrashort Fund

Federated Ohio Municipal Income Fund

Federated Pennsylvania Municipal Income Fund

Federated Premier Municipal Income Fund

Federated Short-Intermediate Duration Municipal Trust

C. <u>Other Funds</u>

Federated Absolute Return Fund

Federated Emerging Market Debt Fund

Federated Global Strategic Value Dividend Fund

Federated Global Total Return Bond Fund

Federated Hermes Absolute Credit Fund

Federated Hermes Global Equity Fund

Federated Hermes Global Small Cap Fund

***Federated Hermes International Equity Fund***

Federated Hermes SDG Engagement Equity Fund

Federated Hermes Unconstrained Credit Fund

Federated International Bond Strategy Portfolio

Federated International Dividend Strategy Portfolio

Federated International Leaders Fund

Federated International Small-Mid Company Fund

Federated International Strategic Value Dividend Fund

Federated MDT Large Cap Value Fund

Federated Muni and Stock Advantage Fund

**FOURTEENTH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated March 1, 2011, as amended, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to ***add*** certain Funds to Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of April 1, 2019

---

| |
|:---|
| &nbsp;&nbsp;**On behalf of each of the Funds indicated on** |
| &nbsp;&nbsp;**Schedule I of the Fund Accounting Agreement,** |
| &nbsp;&nbsp;**as amended from time to time** |
| &nbsp;&nbsp;By: <u>/s/ Deborah M. Molini</u> |
| &nbsp;&nbsp;Name: Deborah M. Molini |
| &nbsp;&nbsp;Title: Assistant Treasurer |
| &nbsp;&nbsp;**THE BANK OF NEW YORK MELLON** |
| &nbsp;&nbsp;By: <u>_/s/ Armando Fernandez</u> |
| &nbsp;&nbsp;Name: Armando Fernandez |
| &nbsp;&nbsp;Title: Vice President/Managing Director |

---

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 04/01/19)**

A. <u>Money Market Funds</u>

Federated Capital Reserves Fund

Federated Government Obligations Tax-Managed Fund

Federated Government Reserves Fund

Federated U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Intermediate Municipal Trust

Federated Michigan Intermediate Municipal Trust

Federated Municipal High Yield Advantage Fund

Federated Municipal Bond Fund, Inc.

Federated Municipal Ultrashort Fund

Federated Ohio Municipal Income Fund

Federated Pennsylvania Municipal Income Fund

Federated Premier Municipal Income Fund

Federated Short-Intermediate Duration Municipal Trust

C. <u>Other Funds</u>

Federated Absolute Return Fund

Federated Emerging Market Debt Fund

Federated Global Strategic Value Dividend Fund

Federated Global Total Return Bond Fund

Federated Hermes Absolute Credit Fund

Federated Hermes Global Equity Fund

Federated Hermes Global Small Cap Fund

Federated Hermes International Equity Fund

Federated Hermes SDG Engagement Equity Fund

Federated Hermes Unconstrained Credit Fund

Federated International Bond Strategy Portfolio

Federated International Dividend Strategy Portfolio

Federated International Leaders Fund

Federated International Small-Mid Company Fund

Federated International Strategic Value Dividend Fund

***Federated Max-Cap Index Fund***

Federated MDT Large Cap Value Fund

***Federated Mid-Cap Index Fund***

Federated Muni and Stock Advantage Fund

***Federated Strategic Value Dividend Fund***

**FIFTEENTH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated March 1, 2011, as amended, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to ***add*** certain Funds to Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of June 1, 2019

---

| |
|:---|
| &nbsp;&nbsp;**On behalf of each of the Funds indicated on** |
| &nbsp;&nbsp;**Schedule I of the Fund Accounting Agreement,** |
| &nbsp;&nbsp;**as amended from time to time** |
| &nbsp;&nbsp;By: <u>/s/ Deborah Molini Kraus</u> |
| &nbsp;&nbsp;Name: Deborah Molini Kraus |
| &nbsp;&nbsp;Title: Assistant Treasurer |
| &nbsp;&nbsp;**THE BANK OF NEW YORK MELLON** |
| &nbsp;&nbsp;By: <u>/s/ James Farrell</u> |
| &nbsp;&nbsp;Name: James Farrell |
| &nbsp;&nbsp;Title: Vice-President |

---

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 06/01/19)**

A. <u>Money Market Funds</u>

Federated Capital Reserves Fund

Federated Government Obligations Tax-Managed Fund

Federated Government Reserves Fund

Federated U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Intermediate Municipal Trust

Federated Michigan Intermediate Municipal Trust

Federated Municipal High Yield Advantage Fund

Federated Municipal Bond Fund, Inc.

Federated Municipal Ultrashort Fund

Federated Ohio Municipal Income Fund

Federated Pennsylvania Municipal Income Fund

Federated Premier Municipal Income Fund

Federated Short-Intermediate Duration Municipal Trust

C. <u>Other Funds</u>

Federated Absolute Return Fund

Federated Emerging Market Debt Fund

***Federated Emerging Markets Equity Fund***

Federated Global Strategic Value Dividend Fund

Federated Global Total Return Bond Fund

Federated Hermes Absolute Credit Fund

Federated Hermes Global Equity Fund

Federated Hermes Global Small Cap Fund

Federated Hermes International Equity Fund

Federated Hermes SDG Engagement Equity Fund

Federated Hermes Unconstrained Credit Fund

Federated International Bond Strategy Portfolio

Federated International Dividend Strategy Portfolio

***Federated International Equity Fund***

***Federated International Growth Fund***

Federated International Leaders Fund

Federated International Small-Mid Company Fund

Federated International Strategic Value Dividend Fund

Federated Max-Cap Index Fund

Federated MDT Large Cap Value Fund

Federated Mid-Cap Index Fund

Federated Muni and Stock Advantage Fund

Federated Strategic Value Dividend Fund

**SIXTEENTH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated March 1, 2011, as amended, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to ***add*** certain Funds to Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of March 1, 2020.

---

| |
|:---|
| &nbsp;&nbsp;**On behalf of each of the Funds indicated on** |
| &nbsp;&nbsp;**Schedule I of the Fund Accounting Agreement,** |
| &nbsp;&nbsp;**as amended from time to time** |
| &nbsp;&nbsp;By: <u>/s/ Deborah Molini Kraus</u> |
| &nbsp;&nbsp;Name: Deborah Molini Kraus |
| &nbsp;&nbsp;Title: Assistant Treasurer |
| &nbsp;&nbsp;**THE BANK OF NEW YORK MELLON** |
| &nbsp;&nbsp;By: <u>/s/ James Farrell</u>_ |
| &nbsp;&nbsp;Name: James Farrell |
| &nbsp;&nbsp;Title: Vice-President |

---

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 03/01/2020)**

A. <u>Money Market Funds</u>

Federated Capital Reserves Fund

Federated Government Obligations Tax-Managed Fund

Federated Government Reserves Fund

Federated U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Intermediate Municipal Trust

Federated Michigan Intermediate Municipal Trust

Federated Municipal High Yield Advantage Fund

Federated Municipal Bond Fund, Inc.

Federated Municipal Ultrashort Fund

Federated Ohio Municipal Income Fund

Federated Pennsylvania Municipal Income Fund

Federated Premier Municipal Income Fund

Federated Short-Intermediate Duration Municipal Trust

C. <u>Other Funds</u>

Federated Absolute Return Fund

Federated Emerging Market Debt Fund

Federated Emerging Markets Equity Fund

Federated Global Strategic Value Dividend Fund

Federated Global Total Return Bond Fund

Federated Hermes Absolute Credit Fund

Federated Hermes Global Equity Fund

Federated Hermes Global Small Cap Fund

Federated Hermes International Equity Fund

Federated Hermes SDG Engagement Equity Fund

Federated Hermes Unconstrained Credit Fund

***Federated Hermes US SMID Fund***

Federated International Bond Strategy Portfolio

Federated International Dividend Strategy Portfolio

Federated International Equity Fund

Federated International Growth Fund

Federated International Leaders Fund

Federated International Small-Mid Company Fund

Federated International Strategic Value Dividend Fund

Federated Max-Cap Index Fund

Federated MDT Large Cap Value Fund

Federated Mid-Cap Index Fund

Federated Muni and Stock Advantage Fund

Federated Strategic Value Dividend Fund

**SEVENTEENTH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated March 1, 2011, as amended, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to ***change the name to certain Funds*** and ***add Hermes to*** certain Funds to Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of June 29, 2020.

---

| |
|:---|
| &nbsp;&nbsp;**On behalf of each of the Funds indicated on** |
| &nbsp;&nbsp;**Schedule I of the Fund Accounting Agreement,** |
| &nbsp;&nbsp;**as amended from time to time** |
| &nbsp;&nbsp;By: <u>/s/ Lori A. Hensler</u> |
| &nbsp;&nbsp;Name: Lori A. Hensler |
| &nbsp;&nbsp;Title: Treasurer |
| &nbsp;&nbsp;**THE BANK OF NEW YORK MELLON** |
| &nbsp;&nbsp;By: <u>/s/ James Farrell</u> |
| &nbsp;&nbsp;Name: James Farrell |
| &nbsp;&nbsp;Title: Vice-President |

---

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 06/29/2020)**

A. <u>Money Market Funds</u> 

Federated ***Hermes*** Capital Reserves Fund

Federated ***Hermes*** Government Obligations Tax-Managed Fund

Federated ***Hermes*** Government Reserves Fund

Federated ***Hermes*** U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated ***Hermes*** Intermediate Municipal ***Fund***

Federated ***Hermes*** Michigan Intermediate Municipal ***Fund***

Federated ***Hermes*** Municipal High Yield Advantage Fund

Federated ***Hermes*** Municipal Bond Fund, Inc.

Federated ***Hermes*** Municipal Ultrashort Fund

Federated ***Hermes*** Ohio Municipal Income Fund

Federated ***Hermes*** Pennsylvania Municipal Income Fund

Federated ***Hermes*** Premier Municipal Income Fund

Federated ***Hermes*** Short-Intermediate Duration Municipal ***Fund***

C. <u>Other Funds</u>

Federated ***Hermes*** Emerging Market Debt Fund

Federated ***Hermes*** Emerging Markets Equity Fund

Federated ***Hermes*** Global Strategic Value Dividend Fund

Federated ***Hermes*** Global Total Return Bond Fund

Federated Hermes Absolute Return Credit Fund

Federated Hermes Global Equity Fund

Federated Hermes Global Small Cap Fund

Federated Hermes International ***Developed*** Equity Fund

Federated Hermes SDG Engagement Equity Fund

Federated Hermes SDG Engagement High Yield Credit Fund

Federated Hermes Unconstrained Credit Fund

Federated Hermes US SMID Fund

Federated ***Hermes*** International Bond Strategy Portfolio

Federated ***Hermes*** International Dividend Strategy Portfolio

Federated ***Hermes*** International Equity Fund

Federated ***Hermes*** International Growth Fund

Federated ***Hermes*** International Leaders Fund

Federated ***Hermes*** International Small-Mid Company Fund

Federated ***Hermes*** International Strategic Value Dividend Fund

Federated ***Hermes*** Max-Cap Index Fund

Federated ***Hermes*** MDT Large Cap Value Fund

Federated ***Hermes*** Mid-Cap Index Fund

Federated ***Hermes*** Muni and Stock Advantage Fund

Federated ***Hermes*** Strategic Value Dividend Fund

**EIGHTEENTH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated March 1, 2011, as amended, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to ***remove*** certain Funds from Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of December 1, 2020.

---

| |
|:---|
| &nbsp;&nbsp;**On behalf of each of the Funds indicated on** |
| &nbsp;&nbsp;**Schedule I of the Fund Accounting Agreement,** |
| &nbsp;&nbsp;**as amended from time to time** |
| &nbsp;&nbsp;By: /s/ Ronald J. Ecoff |
| &nbsp;&nbsp;Name: Ronald J. Ecoff |
| &nbsp;&nbsp;Title: Assistant Treasurer |
| &nbsp;&nbsp;**THE BANK OF NEW YORK MELLON** |
| &nbsp;&nbsp;By: /s/Kelly Carroll |
| &nbsp;&nbsp;Name: Kelly Carroll |
| &nbsp;&nbsp;Title: Vice-President |

---

**<u>SCHEDULE I</u>**

**(UPDATED AS OF 12/1/2020)**

A. <u>Money Market Funds</u> 

Federated Hermes Capital Reserves Fund

Federated Hermes Government Obligations Tax-Managed Fund

Federated Hermes Government Reserves Fund

Federated Hermes U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Hermes Intermediate Municipal Fund

Federated Hermes Michigan Intermediate Municipal Fund

Federated Hermes Municipal High Yield Advantage Fund

Federated Hermes Municipal Bond Fund, Inc.

Federated Hermes Municipal Ultrashort Fund

Federated Hermes Ohio Municipal Income Fund

Federated Hermes Pennsylvania Municipal Income Fund

Federated Hermes Premier Municipal Income Fund

Federated Hermes Short-Intermediate Duration Municipal Fund

C. <u>Other Funds</u>

Federated Hermes Emerging Market Debt Fund

Federated Hermes Emerging Markets Equity Fund

\*\*Federated Hermes Global Strategic Value Dividend Fund

Federated Hermes Global Total Return Bond Fund

Federated Hermes Absolute Return Credit Fund

Federated Hermes Global Equity Fund

Federated Hermes Global Small Cap Fund

Federated Hermes International Developed Equity Fund

Federated Hermes SDG Engagement Equity Fund

Federated Hermes SDG Engagement High Yield Credit Fund

Federated Hermes Unconstrained Credit Fund

Federated Hermes US SMID Fund

Federated Hermes International Bond Strategy Portfolio

Federated Hermes International Dividend Strategy Portfolio

Federated Hermes International Equity Fund

Federated Hermes International Growth Fund

Federated Hermes International Leaders Fund

Federated Hermes International Small-Mid Company Fund

Federated Hermes International Strategic Value Dividend Fund

Federated Hermes Max-Cap Index Fund

Federated Hermes MDT Large Cap Value Fund

Federated Hermes Mid-Cap Index Fund

Federated Hermes Muni and Stock Advantage Fund

Federated Hermes Strategic Value Dividend Fund

\*\*Will liquidate on January 22, 2021

**NINETEENTH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated March 1, 2011, as amended, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to ***remove*** certain Funds from Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of June 1, 2021.

**On behalf of each of the Funds indicated on** 

**Schedule I of the Fund Accounting Agreement,** 

**as amended from time to time**

By: <u>/s/Ronald J. Ecoff</u>

Name: Ronald J. Ecoff

Title: Assistant Treasurer

**THE BANK OF NEW YORK MELLON**

By: <u>/s/Ann M. Osti</u>

Name: Ann M. Osti

Title: Director

**<u>SCHEDULE I</u>**

**(UPDATED AS OF JUNE 1, 2021)**

B. Money Market Funds

Federated Hermes Capital Reserves Fund

Federated Hermes Government Obligations Tax-Managed Fund

Federated Hermes Government Reserves Fund

Federated Hermes U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Hermes Intermediate Municipal Fund

Federated Hermes Michigan Intermediate Municipal Fund

Federated Hermes Municipal High Yield Advantage Fund

Federated Hermes Municipal Bond Fund, Inc.

Federated Hermes Municipal Ultrashort Fund

Federated Hermes Ohio Municipal Income Fund

Federated Hermes Pennsylvania Municipal Income Fund

Federated Hermes Premier Municipal Income Fund

Federated Hermes Short-Intermediate Duration Municipal Fund

C. <u>Other Funds</u>

Federated Hermes Emerging Market Debt Fund

Federated Hermes Emerging Markets Equity Fund

Federated Hermes Global Total Return Bond Fund

Federated Hermes Absolute Return Credit Fund

Federated Hermes Global Equity Fund

Federated Hermes Global Small Cap Fund

Federated Hermes International Developed Equity Fund

Federated Hermes SDG Engagement Equity Fund

Federated Hermes SDG Engagement High Yield Credit Fund

Federated Hermes Unconstrained Credit Fund

Federated Hermes US SMID Fund

Federated Hermes International Bond Strategy Portfolio

Federated Hermes International Dividend Strategy Portfolio

Federated Hermes International Equity Fund

Federated Hermes International Growth Fund

Federated Hermes International Leaders Fund

Federated Hermes International Small-Mid Company Fund

Federated Hermes International Strategic Value Dividend Fund

Federated Hermes Max-Cap Index Fund

Federated Hermes MDT Large Cap Value Fund

Federated Hermes Mid-Cap Index Fund

Federated Hermes Muni and Stock Advantage Fund

Federated Hermes Strategic Value Dividend Fund

**TWENTIETH AMENDMENT TO**

**<u>FUND ACCOUNTING AGREEMENT</u>**

THIS AMENDMENT TO FUND ACCOUNTING AGREEMENT ("<u>Amendment</u>") is by and between each of the investment companies listed on Schedule I to the Agreement, as defined below (each, a "Fund"), and The Bank of New York Mellon ("Bank").

W I T N E S S E T H:

**WHEREAS**, the Funds and the Bank are parties to that certain Fund Accounting Agreement (the "<u>Agreement</u>") dated March 1, 2011, as amended, between the Funds listed on Schedule I of the Agreement, as amended and restated and attached hereto and the Bank;

**WHEREAS**, each Fund is registered as a management investment company under the Investment Company Act of 1940, as amended;

**WHEREAS,** the Funds and the Bank desire to ***<u>remove</u>*** certain Funds from Schedule I; and

**WHEREAS**, the Funds and Bank are parties to that certain Fund Accounting Agreement (the

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

The Funds listed in Schedule I to the Agreement is amended and restated to include the funds listed on Schedule I attached hereto.

The Agreement shall remain in full force and effect as amended by this Amendment.

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of June 1, 2022.

**On behalf of each of the Funds indicated on** 

**Schedule I of the Fund Accounting Agreement,** 

**as amended from time to time**

<u>By:/s/ Ronald J. Ecoff</u>

Name: Ronald J. Ecoff

Title: Assistant Treasurer

**THE BANK OF NEW YORK MELLON**

By: <u>/s/ Ann M. Osti</u>

Name: Ann M. Osti

Title: Director

**<u>SCHEDULE I</u>**

**(UPDATED AS OF JUNE 1, 2022)**

C. Money Market Funds

Federated Hermes Capital Reserves Fund

Federated Hermes Government Obligations Tax-Managed Fund

Federated Hermes Government Reserves Fund

Federated Hermes U.S. Treasury Cash Reserves

B. <u>Muni Fixed Income Funds</u>

Federated Hermes Intermediate Municipal Fund

Federated Hermes Michigan Intermediate Municipal Fund

Federated Hermes Municipal High Yield Advantage Fund

Federated Hermes Municipal Bond Fund, Inc.

Federated Hermes Municipal Ultrashort Fund

Federated Hermes Ohio Municipal Income Fund

Federated Hermes Pennsylvania Municipal Income Fund

Federated Hermes Premier Municipal Income Fund

Federated Hermes Short-Intermediate Duration Municipal Fund

C. <u>Other Funds</u>

Federated Hermes Emerging Market Debt Fund

Federated Hermes Emerging Markets Equity Fund

Federated Hermes Global Total Return Bond Fund

Federated Hermes Global Equity Fund

Federated Hermes Global Small Cap Fund

Federated Hermes International Developed Equity Fund

Federated Hermes SDG Engagement Equity Fund

Federated Hermes SDG Engagement High Yield Credit Fund

Federated Hermes Unconstrained Credit Fund

Federated Hermes US SMID Fund

Federated Hermes International Bond Strategy Portfolio

Federated Hermes International Dividend Strategy Portfolio

Federated Hermes International Equity Fund

Federated Hermes International Growth Fund

Federated Hermes International Leaders Fund

Federated Hermes International Small-Mid Company Fund

Federated Hermes International Strategic Value Dividend Fund

Federated Hermes Max-Cap Index Fund

Federated Hermes MDT Large Cap Value Fund

Federated Hermes Mid-Cap Index Fund

Federated Hermes Muni and Stock Advantage Fund

Federated Hermes Strategic Value Dividend Fund

*5/13/22 – Removed Federated Hermes Absolute Return Credit Fund*

*7/22/22 – Federated Hermes Global Small Cap Fund will liquidate.*

**EXECUTION**

**INVESTMENT COMPANY REPORTING**

**MODERNIZATION SERVICES AMENDMENT TO**

**FUND ACCOUNTING AGREEMENT**

This Investment Company Reporting Modernization Services Amendment (the "Amendment") is made as of March 1, 2018 by and between each of the registered investment companies listed on Schedule I to the Agreement (as defined below) as such Schedule I may be amended from time to time (each registered investment company, the "Fund") and THE BANK OF NEW YORK MELLON ("BNY Mellon").

**BACKGROUND:**

A. WHEREAS, the Fund and BNY Mellon are parties to a Fund Accounting Agreement dated as of March 1, 2011,
as amended (the "Agreement");

B. WHEREAS, this Amendment is an amendment to the Agreement and shall be applicable solely to the portfolios
of the Fund identified at Exhibit 1 hereto (the "Portfolios");

C. WHEREAS, the Fund desires that BNY Mellon provide the investment company reporting modernization services
described in this Amendment;

D. WHEREAS, capitalized terms used in this Amendment shall have the meanings set forth in the Agreement
unless otherwise defined herein, and all forms and rules referenced herein are in reference to forms and rules promulgated under the Investment
Company Act of 1940, as amended; and

E. WHEREAS, the Fund and BNY Mellon desire to amend the Agreement with respect to the foregoing;

**TERMS:**

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. BNY Mellon shall provide the following services to the Fund for the Portfolios
and the Agreement is hereby amended to include the following with the services described therein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 As selected by the Fund, BNY Mellon shall provide services following a shared
service operating model. This operating model requires the Fund or adviser to file the reports described in the services noted below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>FORM N-PORT</u>. BNY Mellon, subject to the limitations described herein
and its timely receipt of all necessary information related thereto, will collect, aggregate and normalize the data required for the submission
of Form N-PORT, related filing types, and any forms adopted to replace such forms. BNY Mellon will review and transmit to the Funds'
third party filing agent each draft N-PORT and provide reasonable cooperation to the relevant Fund and/or such Fund's third party
agent as necessary to resolve any issues with the receipt of the Form N-PORT data provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1 The timely receipt of necessary information referred to above will be determined
by mutual agreement of BNY Mellon and the Fund in advance of the preparation of the initial Form N-PORT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>FORM N-CEN</u>. BNY Mellon, subject to the limitations described herein
and its timely receipt of all necessary information related thereto, will collect, aggregate and normalize the data required for the submission
of Form N-CEN, related filing types, and any forms adopted to replace such forms. BNY Mellon will review and transmit to the Funds'
third party filing agent each draft N-CEN and provide reasonable cooperation to the relevant Fund and/or such Fund's third party
agent as necessary to resolve any issues with the receipt of the Form N-CEN data provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.1 The timely receipt of necessary information referred to above will be determined
by mutual agreement of BNY Mellon and the Fund in advance of the preparation of the initial Form N-CEN.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. BNY Mellon shall not be responsible for: (a) delays in the transmission
to it by the Fund, the Fund's adviser and entities unaffiliated with BNY Mellon (collectively, for this Amendment, "Third
Parties") of data required for the reports described herein, (b) inaccuracies of, errors in or omissions of, such data provided
to it by any Third Party, and (c) validation of such data provided to it by any Third Party. This Section 2 is a limitation of responsibility
provision for the benefit of BNY Mellon, and shall not be used to imply any responsibility or liability against BNY Mellon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Fund shall be responsible for the retention of the filed reports described
herein in accordance with any applicable rule or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Notwithstanding any provision of this Amendment, the services described
herein are not, nor shall they be construed as constituting, legal advice or the provision of legal services for or on behalf of the Fund
or any other person. Neither this Amendment nor the provision of the services establishes or is intended to establish an attorney-client
relationship between BNY Mellon and the Fund or any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. As compensation for the services described herein, the Fund will pay to
BNY Mellon such fees as may be agreed to in writing by the Fund and BNY Mellon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As hereby amended and supplemented, the Agreement shall remain in full force
and effect. In the event of a conflict between the terms of this Amendment and the terms of the Agreement, the terms of this Amendment
shall control with respect to the services described herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Amendment may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same instrument. The facsimile signature of any party
to this Amendment shall constitute the valid and binding execution hereof by such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any provision or provisions of this Amendment shall be held to be invalid,
unlawful or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired.

(Signature page follows.)

**IN WITNESS WHEREOF**, the parties hereto have caused this Amendment to be executed by their duly authorized officers designated below on the date and year first above written.

**EACH OF THE REGISTERED INVESTMENT** 

**COMPANIES LISTED ON EXHIBIT I**

By: <u>/s/ Lori A. Hensler</u>

Name: <u>Lori A. Hensler</u>

Title: <u>Treasurer</u>

**II.** **THE BANK OF NEW YORK MELLON**

By: <u>/s/Armando Fernandez</u>

Name: <u>Armando Fernandez</u>

Title: <u>Vice President</u>

Date: <u>March 2, 2018</u>

**<u>EXHIBIT 1</u>**

**N-PORT Services**

---

| | |
|:---|:---|
| **Portfolio Name** | **ID, Cusip or Ticker Symbol** |
| Federated Hermes Emerging Market Debt Fund | 31428U771 |
| Federated Hermes Emerging Market Debt Fund | 31428U763 |
| Federated Hermes Emerging Market Debt Fund | 31428U755 |
| Federated Hermes Emerging Market Debt Fund | 31428U615 |
| Federated Hermes Intermediate Municipal Fund | 458810108 |
| Federated Hermes Intermediate Municipal Fund | 458810603 |
| Federated Hermes Global Strategic Value Dividend Fund | 31421N865 |
| Federated Hermes Global Strategic Value Dividend Fund | 31421N857 |
| Federated Hermes Global Strategic Value Dividend Fund | 31421N840 |
| Federated Hermes Global Strategic Value Dividend Fund | 31421N832 |
| Federated Hermes Global Total Return Bond Fund | 31420G408 |
| Federated Hermes Global Total Return Bond Fund | 31420G507 |
| Federated Hermes Global Total Return Bond Fund | 31420G606 |
| Federated Hermes Global Total Return Bond Fund | 31420G879 |
| Federated Hermes International Bond Strategy Portfolio | 31421P308 |
| Federated Hermes International Dividend Strategy Portfolio | 31421P605 |
| Federated Hermes International Leaders Fund | 31428U847 |
| Federated Hermes International Leaders Fund | 31428U839 |
| Federated Hermes International Leaders Fund | 31428U821 |
| Federated Hermes International Leaders Fund | 31428U623 |
| Federated Hermes International Leaders Fund | 31428U599 |
| Federated Hermes International Leaders Fund | 31428U581 |
| Federated Hermes International Small-Mid Company Fund | 31428U748 |
| Federated Hermes International Small-Mid Company Fund | 31428U730 |
| Federated Hermes International Small-Mid Company Fund | 31428U722 |
| Federated Hermes International Small-Mid Company Fund | 31428U631 |
| Federated Hermes International Strategic Value Dividend Fund | 314172388 |
| Federated Hermes International Strategic Value Dividend Fund | 314172370 |
| Federated Hermes International Strategic Value Dividend Fund | 314172362 |
| Federated Hermes International Strategic Value Dividend Fund | 31421N824 |
| Federated Hermes Michigan Intermediate Municipal Fund | 313923302 |
| Federated Hermes Muni and Stock Advantage Fund | 31420C837 |
| Federated Hermes Muni and Stock Advantage Fund | 31420C829 |
| Federated Hermes Muni and Stock Advantage Fund | 31420C811 |
| Federated Hermes Muni and Stock Advantage Fund | 31420C720 |
| Federated Hermes Muni and Stock Advantage Fund | 31420C654 |
| Federated Hermes Municipal High Yield Advantage Fund | 313923864 |
| Federated Hermes Municipal High Yield Advantage Fund | 313923856 |
| Federated Hermes Municipal High Yield Advantage Fund | 313923849 |
| Federated Hermes Municipal High Yield Advantage Fund | 313923831 |
| Federated Hermes Municipal High Yield Advantage Fund | 313923815 |
| Federated Hermes Municipal Bond Fund, Inc. | 313913105 |
| Federated Hermes Municipal Bond Fund, Inc. | 313913204 |
| Federated Hermes Municipal Bond Fund, Inc. | 313913303 |
| Federated Hermes Municipal Bond Fund, Inc. | 313913402 |
| Federated Hermes Municipal Bond Fund, Inc. | 313913600 |
| Federated Hermes Municipal Ultrashort Fund | 31417P866 |
| Federated Hermes Municipal Ultrashort Fund | 31417P858 |
| Federated Hermes Ohio Municipal Income Fund | 313923823 |
| Federated Hermes Ohio Municipal Income Fund | 313923609 |
| Federated Hermes Pennsylvania Municipal Income Fund | 313923708 |
| Federated Hermes Pennsylvania Municipal Income Fund | 313923807 |
| Federated Hermes Premier Municipal Income Fund | 31423P108 |
| Federated Hermes Short-Intermediate Municipal Fund | 313907305 |
| Federated Hermes Short-Intermediate Municipal Fund | 313907107 |
| Federated Hermes Short-Intermediate Municipal Fund | 313907206 |

---

**N-CEN Services**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Portfolio Name** | &nbsp;&nbsp;**ID, Cusip or Ticker Symbol and Fund** |
| Federated Hermes Emerging Market Debt Fund | 31428U771 |
| Federated Hermes Emerging Market Debt Fund | 31428U763 |
| Federated Hermes Emerging Market Debt Fund | 31428U755 |
| Federated Hermes Emerging Market Debt Fund | 31428U615 |
| Federated Hermes Government Obligations Tax-Managed Fund | 60934N856 |
| Federated Hermes Government Obligations Tax-Managed Fund | 60934N849 |
| Federated Hermes Government Obligations Tax-Managed Fund | 608919494 |
| Federated Hermes Government Reserves Fund | 608919205 |
| Federated Hermes Government Reserves Fund | 608919544 |
| Federated Hermes Government Reserves Fund | 608919536 |
| Federated Hermes Government Reserves Fund | 608919528 |
| Federated Hermes Government Reserves Fund | 908919510 |
| Federated Hermes Intermediate Municipal Fund | 458810108 |
| Federated Hermes Intermediate Municipal Fund | 458810603 |
| Federated Hermes Global Strategic Value Dividend Fund | 31421N865 |
| Federated Hermes Global Strategic Value Dividend Fund | 31421N857 |
| Federated Hermes Global Strategic Value Dividend Fund | 31421N840 |
| Federated Hermes Global Strategic Value Dividend Fund | 31421N832 |
| Federated Hermes Global Total Return Bond Fund | 31420G408 |
| Federated Hermes Global Total Return Bond Fund | 31420G507 |
| Federated Hermes Global Total Return Bond Fund | 31420G606 |
| Federated Hermes Global Total Return Bond Fund | 31420G879 |
| Federated Hermes International Bond Strategy Portfolio | 31421P308 |
| Federated Hermes International Dividend Strategy Portfolio | 31421P605 |
| Federated Hermes International Leaders Fund | 31428U847 |
| Federated Hermes International Leaders Fund | 31428U839 |
| Federated Hermes International Leaders Fund | 31428U821 |
| Federated Hermes International Leaders Fund | 31428U623 |
| Federated Hermes International Leaders Fund | 31428U599 |
| Federated Hermes International Leaders Fund | 31428U581 |
| Federated Hermes International Small-Mid Company Fund | 31428U748 |
| Federated Hermes International Small-Mid Company Fund | 31428U730 |
| Federated Hermes International Small-Mid Company Fund | 31428U722 |
| Federated Hermes International Small-Mid Company Fund | 31428U631 |
| Federated Hermes International Strategic Value Dividend Fund | 314172388 |
| Federated Hermes International Strategic Value Dividend Fund | 314172370 |
| Federated Hermes International Strategic Value Dividend Fund | 314172362 |
| Federated Hermes International Strategic Value Dividend Fund | 31421N824 |
| Federated Hermes Michigan Intermediate Municipal Fund | 313923302 |
| Federated Hermes Muni and Stock Advantage Fund | 31420C837 |
| Federated Hermes Muni and Stock Advantage Fund | 31420C829 |
| Federated Hermes Muni and Stock Advantage Fund | 31420C811 |
| Federated Hermes Muni and Stock Advantage Fund | 31420C720 |
| Federated Hermes Muni and Stock Advantage Fund | 31420C654 |
| Federated Hermes Municipal High Yield Advantage Fund | 313923864 |
| Federated Hermes Municipal High Yield Advantage Fund | 313923856 |
| Federated Hermes Municipal High Yield Advantage Fund | 313923849 |
| Federated Hermes Municipal High Yield Advantage Fund | 313923831 |
| Federated Hermes Municipal High Yield Advantage Fund | 313923815 |
| Federated Hermes Municipal Bond Fund, Inc. | 313913105 |
| Federated Hermes Municipal Bond Fund, Inc. | 313913204 |
| Federated Hermes Municipal Bond Fund, Inc. | 313913303 |
| Federated Hermes Municipal Bond Fund, Inc. | 313913402 |
| Federated Hermes Municipal Bond Fund, Inc. | 313913600 |
| Federated Hermes Municipal Ultrashort Fund | 31417P866 |
| Federated Hermes Municipal Ultrashort Fund | 31417P858 |
| Federated Hermes Ohio Municipal Income Fund | 313923823 |
| Federated Hermes Ohio Municipal Income Fund | 313923609 |
| Federated Hermes Pennsylvania Municipal Income Fund | 313923708 |
| Federated Hermes Pennsylvania Municipal Income Fund | 313923807 |
| Federated Hermes Premier Municipal Income Fund | 31423P108 |
| Federated Hermes Short-Intermediate Municipal Trust | 313907305 |
| Federated Hermes Short-Intermediate Municipal Fund | 313907107 |
| Federated Hermes Short-Intermediate Municipal Fund | 313907206 |
| Federated Hermes U.S. Treasury Cash Reserves | 60934N682 |
| Federated Hermes U.S. Treasury Cash Reserves | 60934N674 |

---

[ ]

## Ex-99.J

Exhibit 28 (j) (1) under Form N-1A<br> Exhibit (23) under Item 601/Reg. S-K

Consent of Independent Registered Public Accounting Firm

We consent to the references to our firm under the captions "Financial Highlights" in each Prospectus and "Independent Registered Public Accounting Firm" in each Statement of Additional Information, each dated February 28, 2023, and each included in this Post-Effective Amendment No. 80 to the Registration Statement (Form N-1A, File No. 333-128884) of Federated Hermes Managed Pool Series (the "Registration Statement").

We also consent to the incorporation by reference of our reports dated February 22, 2023, with respect to the financial statements and financial highlights of Federated Hermes Corporate Bond Strategy Portfolio, Federated Hermes High Yield Strategy Portfolio and Federated Hermes Mortgage Strategy Portfolio (three of the portfolios comprising Federated Hermes Managed Pool Series) included in the Annual Report to Shareholders (Form N-CSR) for the year ended December 31, 2022, into this Registration Statement, filed with the Securities and Exchange Commission.

/s/ Ernst & Young LLP

Boston, Massachusetts

February 22, 2023