Prospectus
September
30, 2022
Disclosure
contained herein relates to all classes of the Fund, as listed below, unless
otherwise noted.
|
Share
Class | Ticker |
Select | GRTXX |
Institutional | GOIXX |
Service | GOSXX |
|
|
Administrative | GOEXX |
Cash
II | GFYXX |
Cash
Series | GFSXX |
|
|
Capital | GOCXX |
Trust | GORXX |
Premier | GOFXX |
|
|
Advisor | GOVXX |
SDG | GPHXX |
|
Federated Hermes Government Obligations Fund
A Portfolio of Federated Hermes Money Market Obligations Trust
A money
market mutual fund seeking to provide current income consistent with stability
of principal by investing in a portfolio of U.S. Treasury and government
securities maturing in 397 days or less and repurchase agreements collateralized
fully by U.S. Treasury and government securities.
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.
Not
FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee
|
|
SEL |
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 |
|
|
SEL |
|
Management
Fee |
|
|
Distribution
(12b-1) Fee |
|
|
Other
Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
Fee
Waivers and/or Expense Reimbursements2 |
( |
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
1
2
|
1
Year |
$ |
|
3
Years |
$ |
|
5
Years |
$ |
|
10
Years |
$ |
1
2
The
Fund’s SEL class total return for the six-month period from January 1, 2022 to
June 30, 2022, was 0.17%.
Within
the periods shown in the bar chart, the Fund’s SEL class highest quarterly
return was 0.45% (quarter ended September 30, 2019). Its lowest quarterly return
was 0.00% (quarter ended March 31, 2021).
3
|
Share
Class |
1
Year |
5
Years |
Since
Inception |
|
SEL: |
|
|
|
|
Inception
Date: |
|
|
|
FUND
MANAGEMENT
The
Fund’s Investment Adviser is Federated Investment Management
Company.
Purchase
and Sale of Fund Shares
The
minimum initial investment amount for the Fund’s SEL class is generally
$1,000,000 and there is no minimum subsequent
investment amount. Certain types of accounts are eligible for lower minimum
investments. The minimum investment amount for Systematic Investment Programs is
$50.
You
may purchase, redeem or exchange Shares of the Fund on any day the New York
Stock Exchange (NYSE) is open. Shares may
be purchased through a financial intermediary or directly from the Fund, by wire
or by check. Please note that certain purchase restrictions may apply. Redeem or
exchange Shares through a financial intermediary or directly from the Fund by
telephone at 1-800-341-7400 or by mail.
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 Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and/or its related
companies may pay the intermediary for the sale of Fund Shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
4
|
|
IS |
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 |
|
|
IS |
|
Management
Fee |
|
|
Distribution
(12b-1) Fee |
|
|
Other
Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
Fee
Waivers and/or Expense Reimbursements2 |
( |
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
1
2
|
1
Year |
$ |
|
3
Years |
$ |
|
5
Years |
$ |
|
10
Years |
$ |
5
6
The
Fund’s IS class total return for the six-month period from January 1, 2022 to
June 30, 2022, was 0.16%.
Within
the periods shown in the bar chart, the Fund’s IS class highest quarterly return
was 0.57% (quarter ended June 30, 2019). Its lowest quarterly return was 0.00%
(quarter ended March 31, 2021).
|
Share
Class |
1
Year |
5
Years |
10
Years |
|
IS: |
|
|
|
7
FUND
MANAGEMENT
The
Fund’s Investment Adviser is Federated Investment Management
Company.
Purchase
and Sale of Fund Shares
The
minimum initial investment amount for the Fund’s IS class is generally $500,000
and there is no minimum subsequent
investment amount. Certain types of accounts are eligible for lower minimum
investments. The minimum investment amount for Systematic Investment Programs is
$50.
You
may purchase, redeem or exchange Shares of the Fund on any day the New York
Stock Exchange (NYSE) is open. Shares may
be purchased through a financial intermediary or directly from the Fund, by wire
or by check. Please note that certain purchase restrictions may apply. Redeem or
exchange Shares through a financial intermediary or directly from the Fund by
telephone at 1-800-341-7400 or by mail.
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 Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and/or its related
companies may pay the intermediary for the sale of Fund Shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
8
|
|
SS |
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 |
|
|
SS |
|
Management
Fee |
|
|
Distribution
(12b-1) Fee |
|
|
Other
Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
Fee
Waivers and/or Expense Reimbursements1 |
( |
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
1
|
1
Year |
$ |
|
3
Years |
$ |
|
5
Years |
$ |
|
10
Years |
$ |
9
10
The
Fund’s SS class total return for the six-month period from January 1, 2022 to
June 30, 2022, was 0.10%.
Within
the periods shown in the bar chart, the Fund’s SS class highest quarterly return
was 0.51% (quarter ended June 30, 2019). Its lowest quarterly return was 0.00%
(quarter ended March 31, 2021).
|
Share
Class |
1
Year |
5
Years |
10
Years |
|
SS: |
|
|
|
11
FUND
MANAGEMENT
The
Fund’s Investment Adviser is Federated Investment Management
Company.
Purchase
and Sale of Fund Shares
The
minimum initial investment amount for the Fund’s SS class is generally $500,000
and there is no minimum subsequent
investment amount. Certain types of accounts are eligible for lower minimum
investments. The minimum investment amount for Systematic Investment Programs is
$50.
You
may purchase, redeem or exchange Shares of the Fund on any day the New York
Stock Exchange (NYSE) is open. Shares may
be purchased through a financial intermediary or directly from the Fund, by wire
or by check. Please note that certain purchase restrictions may apply. Redeem or
exchange Shares through a financial intermediary or directly from the Fund by
telephone at 1-800-341-7400 or by mail.
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 Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and/or its related
companies may pay the intermediary for the sale of Fund Shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
12
|
|
ADM |
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 |
|
|
ADM |
|
Management
Fee |
|
|
Distribution
(12b-1) Fee |
|
|
Other
Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
Fee
Waivers and/or Expense Reimbursements2 |
( |
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
1
2
|
1
Year |
$ |
|
3
Years |
$ |
|
5
Years |
$ |
|
10
Years |
$ |
13
14
The
Fund’s ADM class total return for the six-month period from January 1, 2022 to
June 30, 2022, was 0.10%.
Within
the periods shown in the bar chart, the Fund’s ADM class highest quarterly
return was 0.50% (quarter ended June 30, 2019). Its lowest quarterly return was
0.00% (quarter ended March 31, 2021).
|
Share
Class |
1
Year |
Since
Inception |
|
ADM: |
|
|
|
Inception
Date: |
|
|
15
FUND
MANAGEMENT
The
Fund’s Investment Adviser is Federated Investment Management
Company.
Purchase
and Sale of Fund Shares
The
minimum initial investment amount for the Fund’s ADM class is generally $500,000
and there is no minimum subsequent
investment amount. Certain types of accounts are eligible for lower minimum
investments. The minimum investment amount for Systematic Investment Programs is
$50.
You
may purchase, redeem or exchange Shares of the Fund on any day the New York
Stock Exchange (NYSE) is open. Shares may
be purchased through a financial intermediary or directly from the Fund, by wire
or by check. Please note that certain purchase restrictions may apply. Redeem or
exchange Shares through a financial intermediary or directly from the Fund by
telephone at 1-800-341-7400 or by mail.
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 Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and/or its related
companies may pay the intermediary for the sale of Fund Shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
16
|
|
CII |
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 |
|
|
CII |
|
Management
Fee |
|
|
Distribution
(12b-1) Fee |
|
|
Other
Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
Fee
Waivers and/or Expense Reimbursements1 |
( |
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
1
|
1
Year |
$ |
|
3
Years |
$ |
|
5
Years |
$ |
|
10
Years |
$ |
17
18
The
Fund’s CII class total return for the six-month period from January 1, 2022 to
June 30, 2022, was 0.04%.
Within
the periods shown in the bar chart, the Fund’s CII class highest quarterly
return was 0.41% (quarter ended June 30, 2019). Its lowest quarterly return was
0.00% (quarter ended March 31, 2021).
|
Share
Class |
1
Year |
5
Years |
Since
Inception |
|
CII: |
|
|
|
|
Inception
Date: |
|
|
|
19
FUND
MANAGEMENT
The
Fund’s Investment Adviser is Federated Investment Management
Company.
Purchase
and Sale of Fund Shares
The
minimum initial investment amount for the Fund’s CII class is generally $25,000
and there is no minimum subsequent
investment amount. The minimum initial and subsequent investment amounts for
Individual Retirement Accounts are generally $250 and $100, respectively.
Certain types of accounts are eligible for lower minimum investments. The
minimum investment amount for Systematic Investment Programs is
$50.
You
may purchase, redeem or exchange Shares of the Fund on any day the New York
Stock Exchange (NYSE) is open. Shares may
be purchased through a financial intermediary or directly from the Fund, by wire
or by check. Please note that certain purchase restrictions may apply. Redeem or
exchange Shares through a financial intermediary or directly from the Fund by
telephone at 1-800-341-7400 or by mail.
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 Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and/or its related
companies may pay the intermediary for the sale of Fund Shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
20
|
|
CS |
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 |
|
|
CS |
|
Management
Fee |
|
|
Distribution
(12b-1) Fee |
|
|
Other
Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
Fee
Waivers and/or Expense Reimbursements1 |
( |
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
1
|
1
Year |
$ |
|
3
Years |
$ |
|
5
Years |
$ |
|
10
Years |
$ |
21
22
The
Fund’s CS class total return for the six-month period from January 1, 2022 to
June 30, 2022, was 0.03%.
Within
the periods shown in the bar chart, the Fund’s CS class highest quarterly return
was 0.37% (quarter ended June 30, 2019). Its lowest quarterly return was 0.00%
(quarter ended March 31, 2021).
|
Share
Class |
1
Year |
5
Years |
Since
Inception |
|
CS: |
|
|
|
|
Inception
Date: |
|
|
|
23
FUND
MANAGEMENT
The
Fund’s Investment Adviser is Federated Investment Management
Company.
Purchase
and Sale of Fund Shares
The
minimum initial investment amount for the Fund’s Cash Series Shares is generally
$10,000 and $250 for minimum subsequent
investments. Certain types of accounts are eligible for lower minimum
investments. The minimum investment amount for Systematic Investment Programs is
$50.
You
may purchase, redeem or exchange Shares of the Fund on any day the New York
Stock Exchange (NYSE) is open. Shares may
be purchased through a financial intermediary or directly from the Fund, by wire
or by check. Please note that certain purchase restrictions may apply. Redeem or
exchange Shares through a financial intermediary or directly from the Fund by
telephone at 1-800-341-7400 or by mail.
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 Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and/or its related
companies may pay the intermediary for the sale of Fund Shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
24
|
|
CAP |
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 |
|
|
CAP |
|
Management
Fee |
|
|
Distribution
(12b-1) Fee |
|
|
Other
Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
Fee
Waivers and/or Expense Reimbursements1 |
( |
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
1
|
1
Year |
$ |
|
3
Years |
$ |
|
5
Years |
$ |
|
10
Years |
$ |
25
26
The
Fund’s CAP class total return for the six-month period from January 1, 2022 to
June 30, 2022, was 0.13%.
Within
the periods shown in the bar chart, the Fund’s CAP class highest quarterly
return was 0.54% (quarter ended June 30, 2019). Its lowest quarterly return was
0.00% (quarter ended March 31, 2021).
|
Share
Class |
1
Year |
5
Years |
10
Years |
|
CAP: |
|
|
|
27
FUND
MANAGEMENT
The
Fund’s Investment Adviser is Federated Investment Management
Company.
Purchase
and Sale of Fund Shares
The
minimum initial investment amount for the Fund’s CAP class is generally $500,000
and there is no minimum subsequent
investment amount. Certain types of accounts are eligible for lower minimum
investments. The minimum investment amount for Systematic Investment Programs is
$50.
You
may purchase, redeem or exchange Shares of the Fund on any day the New York
Stock Exchange (NYSE) is open. Shares may
be purchased through a financial intermediary or directly from the Fund, by wire
or by check. Please note that certain purchase restrictions may apply. Redeem or
exchange Shares through a financial intermediary or directly from the Fund by
telephone at 1-800-341-7400 or by mail.
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 Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and/or its related
companies may pay the intermediary for the sale of Fund Shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
28
|
|
TR |
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 |
|
|
TR |
|
Management
Fee |
|
|
Distribution
(12b-1) Fee |
|
|
Other
Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
Fee
Waivers and/or Expense Reimbursements1 |
( |
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
1
|
1
Year |
$ |
|
3
Years |
$ |
|
5
Years |
$ |
|
10
Years |
$ |
29
30
The
Fund’s TR class total return for the six-month period from January 1, 2022 to
June 30, 2022, was 0.06%.
Within
the periods shown in the bar chart, the Fund’s TR class highest quarterly return
was 0.44% (quarter ended June 30, 2019). Its lowest quarterly return was 0.00%
(quarter ended March 31, 2021).
|
Share
Class |
1
Year |
5
Years |
10
Years |
|
TR: |
|
|
|
31
FUND
MANAGEMENT
The
Fund’s Investment Adviser is Federated Investment Management
Company.
Purchase
and Sale of Fund Shares
The
minimum initial investment amount for the Fund’s TR class is generally $500,000
and there is no minimum subsequent
investment amount. Certain types of accounts are eligible for lower minimum
investments. The minimum investment amount for Systematic Investment Programs is
$50.
You
may purchase, redeem or exchange Shares of the Fund on any day the New York
Stock Exchange (NYSE) is open. Shares may
be purchased through a financial intermediary or directly from the Fund, by wire
or by check. Please note that certain purchase restrictions may apply. Redeem or
exchange Shares through a financial intermediary or directly from the Fund by
telephone at 1-800-341-7400 or by mail.
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 Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and/or its related
companies may pay the intermediary for the sale of Fund Shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
32
|
|
PRM |
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 |
|
|
PRM |
|
Management
Fee |
|
|
Distribution
(12b-1) Fee |
|
|
Other
Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
Fee
Waivers and/or Expense Reimbursements2 |
( |
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
1
2
|
1
Year |
$ |
|
3
Years |
$ |
|
5
Years |
$ |
|
10
Years |
$ |
33
34
The
Fund’s PRM class total return for the six-month period from January 1, 2022 to
June 30, 2022, was 0.17%.
Within
the periods shown in the bar chart, the Fund’s PRM class highest quarterly
return was 0.58% (quarter ended June 30, 2019). Its lowest quarterly return was
0.00% (quarter ended March 31, 2021).
35
|
Share
Class |
1
Year |
5
Years |
Since
Inception |
|
PRM: |
|
|
|
|
Inception
Date: |
|
|
|
FUND
MANAGEMENT
The
Fund’s Investment Adviser is Federated Investment Management
Company.
Purchase
and Sale of Fund Shares
The
minimum initial investment amount for the Fund’s Premier Shares is generally $5
million and there is no minimum subsequent
investment amount. Certain types of accounts are eligible for lower minimum
investments. The minimum investment amount for Systematic Investment Programs is
$50.
You
may purchase, redeem or exchange Shares of the Fund on any day the New York
Stock Exchange (NYSE) is open. Shares may
be purchased through a financial intermediary or directly from the Fund, by wire
or by check. Please note that certain purchase restrictions may apply. Redeem or
exchange Shares through a financial intermediary or directly from the Fund by
telephone at 1-800-341-7400 or by mail.
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 Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and/or its related
companies may pay the intermediary for the sale of Fund Shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
36
|
|
AVR |
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 |
|
|
AVR |
|
Management
Fee |
|
|
Distribution
(12b-1) Fee |
|
|
Other
Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
Fee
Waivers and/or Expense Reimbursements2 |
( |
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
1
2
|
1
Year |
$ |
|
3
Years |
$ |
|
5
Years |
$ |
|
10
Years |
$ |
37
38
The
Fund’s AVR class total return for the six-month period from January 1, 2022 to
June 30, 2022, was 0.17%.
Within
the periods shown in the bar chart, the Fund’s AVR class highest quarterly
return was 0.32% (quarter ended March 31, 2020). Its lowest quarterly return was
0.00% (quarter ended March 31, 2021).
|
Share
Class |
1
Year |
Since
Inception |
|
AVR: |
|
|
|
Inception
Date: |
|
|
39
FUND
MANAGEMENT
The
Fund’s Investment Adviser is Federated Investment Management
Company.
Purchase
and Sale of Fund Shares
The
Advisor Shares offered through this Prospectus are available for purchase
exclusively to shareholders investing
through certain financial intermediaries that have entered into an agreement
with the Fund’s Distributor. Advisor Shares may not be purchased directly from
the Fund.
The
minimum initial investment amount for the Fund’s AVR Shares is generally
$1,000,000 and there is no minimum subsequent
investment amount. Certain types of accounts are eligible for lower minimum
investments. The minimum investment amount for Systematic Investment Programs is
$50.
You
may purchase, redeem or exchange Shares of the Fund, through certain financial
intermediaries, on any day the New York
Stock Exchange (NYSE) is open. Shares may be purchased through a financial
intermediary by wire or by check. Please note that certain purchase restrictions
may apply.
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 Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and/or its related
companies may pay the intermediary for the sale of Fund Shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
40
|
|
SDG |
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 |
|
|
SDG |
|
Management
Fee |
|
|
Distribution
(12b-1) Fee |
|
|
Other
Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
Fee
Waivers and/or Expense Reimbursements1 |
( |
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
1
|
1
Year |
$ |
|
3
Years |
$ |
|
5
Years |
$ |
|
10
Years |
$ |
41
42
The
Fund’s PRM class total return for the six-month period from January 1, 2022 to
June 30, 2022, was 0.17%.
Within
the periods shown in the bar chart, the Fund’s PRM class highest quarterly
return was 0.58% (quarter ended June 30, 2019). Its lowest quarterly return was
0.00% (quarter ended March 31, 2021).
43
|
Share
Class |
1
Year |
5
Year |
Since
Inception |
|
PRM: |
|
|
|
|
Inception
Date: |
|
|
|
FUND
MANAGEMENT
The
Fund’s Investment Adviser is Federated Investment Management
Company.
Purchase
and Sale of Fund Shares
The
SDG Shares offered through this Prospectus are available for purchase
exclusively to shareholders investing through
financial intermediaries that utilize electronic trading platforms that may
support a filtering menu to identify funds or share classes that such
intermediary has determined in its discretion offer or provide “SDG/ESG,
sustainable, or impact” goals or purposes. Omnibus accounts are not permitted
without prior written approval from the Fund. Fully disclosed and partially
disclosed accounts are permitted. No direct fund investments are
permitted.
The
minimum initial investment amount for the Fund’s SDG Shares is generally $5
million and there is no minimum subsequent
investment amount. Certain types of accounts are eligible for lower minimum
investments. The minimum investment amount for Systematic Investment Programs is
$50.
You
may purchase, redeem or exchange Shares of the Fund, through certain financial
intermediaries, on any day the New York
Stock Exchange (NYSE) is open. Shares may be purchased through a financial
intermediary by wire or by check. Please note that certain purchase restrictions
may apply.
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 Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and/or its related
companies may pay the intermediary for the sale of Fund Shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
44
What are
the Fund’s Investment Strategies?
The
Fund’s investment objective is to provide current income consistent with
stability of principal. While there is no assurance
that the Fund will achieve its investment objective, it endeavors to do so by
following the strategies and policies described in this Prospectus.
The
Fund invests in a portfolio of U.S. Treasury and government securities maturing
in 397 days or less and repurchase agreements
collateralized fully by U.S. Treasury and government securities. The Fund may
also hold cash. The Fund limits its investments to those that would enable it to
qualify as a permissible investment for federally chartered credit unions as set
forth in applicable federal banking regulations.
The
Adviser targets a dollar-weighted average portfolio maturity (WAM) range based
upon its interest rate outlook. The Adviser
formulates its interest rate outlook by analyzing a variety of factors, such
as:
◾ current
U.S. economic activity and the economic outlook;
◾ current
short-term interest rates;
◾ the
Federal Reserve Board’s policies regarding short-term interest rates;
and
◾ the
potential effects of foreign economic activity on U.S. short-term interest
rates.
The
Adviser generally shortens the portfolio’s WAM when it expects interest rates to
rise and extends the WAM when it expects
interest rates to fall. This strategy seeks to enhance the returns from
favorable interest rate changes and reduce the effect of unfavorable changes.
The Adviser selects securities used to shorten or extend the portfolio’s WAM by
comparing the returns currently offered by different investments to their
historical and expected returns.
The
Fund will: (1) maintain a WAM of 60 days or less; and (2) maintain a weighted
average life (WAL) of 120 days or less.
Certain of the securities in which the Fund invests may pay interest at a rate
that is periodically adjusted (“Adjustable Rate Securities”). For purposes of
calculating WAM, the maturity of an Adjustable Rate Security generally will be
the period remaining until its next interest rate adjustment. For purposes of
calculating WAL, the maturity of an Adjustable Rate Security will be its stated
final maturity, without regard to interest rate adjustments; accordingly, the
120-day WAL limitation could serve to limit the Fund’s ability to invest in
Adjustable Rate Securities.
The
Fund will operate as a “government money market fund,” as such term is defined
in or interpreted under Rule 2a-7 under the
1940 Act, as amended. “Government money market funds” are required to invest at
least 99.5% of their total assets in: (i) cash; (ii) securities issued or
guaranteed by the United States or certain U.S. government agencies or
instrumentalities; and/or (iii) repurchase agreements that are collateralized
fully. Government money market funds are exempt from requirements that permit
money market funds to impose a liquidity fee and/or temporary redemption
gates.
The
Fund has not elected to be subject to the liquidity fees and gates requirement
at this time.
Under
normal conditions, the Fund will invest its assets so that at least 80% of its
net assets (plus any borrowings for investment
purposes) are invested in government securities and/or repurchase agreements
that are collateralized by government securities. The Fund will notify
shareholders at least 60 days in advance of any change in this investment
policy.
TEMPORARY
CASH POSITIONS
The
Fund may temporarily depart from its principal investment strategies by holding
cash. It may do this in response to unusual
circumstances, such as: adverse market, economic or other conditions (for
example, during periods when there is a shortage of appropriate securities); to
maintain liquidity to meet shareholder redemptions; or to accommodate cash
inflows. Such temporary cash positions could affect the Fund’s investment
returns and/or the Fund’s ability to achieve its investment
objective.
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.
45
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:
U.S.
Treasury Securities (A Type of Fixed-Income Security)
U.S.
Treasury securities are direct obligations of the federal government of the
United States.
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 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, Freddie Mac and 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.
Callable
Securities (A Type of Fixed-Income Security)
Certain
U.S. Treasury or government securities in which the Fund invests are callable at
the option of the issuer. Callable
securities are subject to call risks.
OTHER
INVESTMENTS, TRANSACTIONS, TECHNIQUES
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 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 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.
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. These are the primary
factors that may negatively impact the Fund’s ability to maintain a stable NAV,
delay the payment of redemptions by the Fund or reduce the Fund’s daily
dividends. 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.
46
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. Money market funds try to minimize this risk by
purchasing short-term securities. Negative or very low interest rates magnify
the risks associated with changes in interest rates. In general, changing
interest rates, including rates that fall below zero, have unpredictable effects
on markets and expose debt and related markets to heightened volatility and may
detract from Fund performance to the extent a Fund is exposed to such interest
rates and/or volatility. During periods when interest rates are low or there are
negative interest rates, a Fund’s yield (and total return) also is likely to be
low or otherwise adversely affected or the Fund may be unable to maintain a
positive return, or yield, or minimize the volatility of the Fund’s NAV per
share or maintain a stable NAV.
ISSUER
CREDIT RISK
It
is possible that interest or principal on securities will not be paid when due.
Money market funds try to minimize this risk by
purchasing higher-quality securities.
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 NAV 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 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
A
party to a transaction involving the Fund may 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 strategies.
Call
Risk
Call
risk is the possibility that an issuer may redeem a U.S. Treasury or government
security before maturity (a “call”) at a price
below or above its current market price. An increase in the likelihood of a call
may reduce the security’s price.
If
a U.S. Treasury or government 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.
RISK
ASSOCIATED WITH INVESTING SHARE PURCHASE PROCEEDS
On
days during which there are net purchases of Fund Shares, the Fund must invest
the proceeds at prevailing market yields or
hold cash. If the Fund holds cash, or if the yield of the securities purchased
is less than that of the securities already in the portfolio, the Fund’s yield
will likely decrease. Conversely, net purchases on days on which short-term
yields rise will likely cause the Fund’s yield to increase. The larger the
amount that must be invested or the greater the difference between the yield of
the securities purchased and the yield of the existing investments, the greater
the impact will be on the yield of the Fund. In the event of significant changes
in short-term yields or significant net purchases, the Fund retains the
discretion to close to new investments. However, the Fund is not required to
close, and no assurance can be given that this will be done in any given
circumstance.
47
RISK
ASSOCIATED WITH USE OF AMORTIZED COST
In the
unlikely event that the Fund’s Board of Trustees (the “Board”)
were to determine, pursuant to Rule 2a-7, that the extent of the deviation
between the Fund’s amortized cost per Share and its market-based NAV per Share
may result in material dilution or other unfair results to shareholders, the
Board will cause the Fund to take such action as it deems appropriate to
eliminate or reduce, to the extent practicable, such dilution or unfair results,
including, but not limited to, considering suspending redemption of Shares and
liquidating the Fund under Rule 22e-3 under the Investment Company Act of
1940.
ADDITIONAL
FACTORS AFFECTING YIELD
There
is no guarantee that the Fund will provide a certain level of income or that any
such income will exceed the rate of
inflation. Further, the Fund’s yield will vary. A low or negative interest rate
environment may prevent the Fund from providing a positive return, or yield, or
paying Fund expenses out of current income and could impair the Fund’s ability
to maintain a stable NAV. The Fund’s yield could also be negatively affected
(both in absolute terms and as compared to other money market funds) by aspects
of its investment program (for example, its investment policies, strategies or
limitations) or its operational policies (for example, its cut-off time for
purchases and redemptions of Shares).
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 and/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 across the market. This may
increase redemptions from funds that hold impacted securities. Such a market
event could 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.
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 (“COVID-19”). This
coronavirus has resulted in closing 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 may continue for an extended period of time and 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. Any such impact
could adversely affect the Fund’s performance.
The United
States has responded to the COVID-19 pandemic and resulting economic distress
with fiscal and monetary stimulus packages. In late March 2020, the government
passed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”),
a stimulus package providing for over $2.2 trillion in resources to small
businesses, state and local governments, and individuals that have been
adversely impacted by the COVID-19 pandemic. In addition, in mid-March 2020 the
U.S. Federal Reserve (“Fed”) cut interest rates to historically low levels and
announced a new round of quantitative easing, including purchases of corporate
and municipal government bonds. The Fed also enacted various programs to support
liquidity operations and funding in the financial markets, including expanding
its reverse repurchase agreement operations, adding $1.5 trillion of liquidity
to the banking system; establishing swap lines with other major central banks to
provide dollar funding; establishing a program to support money market funds;
easing various bank capital buffers; providing funding backstops for businesses
to provide bridging loans for up to four years; and providing funding to help
credit flow in asset-backed securities markets. The Fed also plans to extend
credit to small- and medium-sized businesses.
48
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.
What Do
Shares Cost?
CALCULATION
OF NET ASSET VALUE
The
Fund attempts to stabilize the NAV of its Shares at $1.00 by valuing the
portfolio securities using the amortized cost
method. In addition, for regulatory purposes, the Fund calculates a market-based
NAV per Share on a periodic basis. The Fund cannot guarantee that its NAV will
always remain at $1.00 per Share. The Fund does not charge a front-end sales
charge.
You
can purchase, redeem or exchange Shares any day the NYSE is open (a “Regular
Business Day”). You may also be able to
purchase and redeem (but not exchange) Shares on certain days that the NYSE is
closed on an unscheduled basis due to unforeseen or emergency circumstances, if
the Fund’s Board determines to allow Fund Share transactions on such days (a
“Special Trading Day”). If the Fund declares a Special Trading Day, information
regarding shareholder trading activities for the Special Trading Day (such as
when NAV, and entitlement to that day’s dividend, will be determined) will be
available by calling the Fund at 1-800-341-7400 and will be posted on
FederatedInvestors.com.
The
information set forth in this Prospectus regarding times relevant to NAV
determination and dividend entitlement applies only to Regular Business
Days. Please
note that the times that might be specified for NAV determination and dividend
entitlement on a Special Trading Day would not necessarily be the same as set
forth in this Prospectus with respect to Regular Business Days. Although
Federated Hermes will attempt to make such information available in advance of a
particular Special Trading Day, given the nature of Special Trading Days, it may
not be able to do so until the morning of the Special Trading Day.
When
the Fund receives your transaction request in proper form (as described in this
Prospectus under the sections entitled
“How to Purchase Shares” and “How to Redeem and Exchange Shares”), it is
processed at the next determined NAV. NAV is generally determined at 5:00 p.m.
Eastern time each day the NYSE is open; except that on the day after
Thanksgiving and Christmas Eve (when Christmas Eve falls on a weekday), NAV will
be determined at 3:00 p.m. Eastern time. The times as of when NAV is determined,
and when orders must be placed, may be changed as permitted by the
SEC.
How is the
Fund Sold?
The
Fund offers the following Share classes: Institutional Shares, Service Shares,
Administrative Shares, Capital Shares,
Trust Shares, Premier Shares, Cash II Shares, Cash Series Shares, Select Shares
(formerly, Class R Shares), Advisor Shares and SDG Shares, each representing
interests in a single portfolio of securities. All Share classes have different
expenses which affect their performance. Please note that certain purchase
restrictions may apply.
The
Advisor Shares offered through this Prospectus are available for purchase
exclusively to shareholders investing
through certain financial intermediaries that have entered into an agreement
with the Fund’s Distributor with respect to the Advisor Shares.
The
SDG Shares offered through this Prospectus are available for purchase
exclusively to investors investing through
financial intermediaries that utilize certain electronic trading platforms that
may support a filtering menu to identify funds or share classes that such
intermediary has determined in its discretion offer or provide “SDG/ESG,
sustainable, or impact” goals or purposes.
Under
the Distributor’s Contract with the Fund, the Distributor, Federated Securities
Corp., offers Shares on a continuous,
best-efforts basis. The Distributor is a subsidiary of Federated Hermes, Inc.
(“Federated Hermes,” formerly, Federated Investors, Inc.).
The
Fund’s Distributor markets the Shares described in this Prospectus to entities
holding Shares in an agency or fiduciary
capacity, financial institutions, financial intermediaries and institutional
investors or to individuals, directly or through financial
intermediaries.
49
Intra-Fund
Share Conversion Program
With
the exception of AVR Shares, a shareholder in the Fund’s Shares may convert
their Shares at net asset value to any other
share class of the Fund if the shareholder meets the investment minimum and
eligibility requirements for the share class into which the conversion is
sought, as applicable. Such conversion of classes should not result in a
realization event for tax purposes. Contact your financial intermediary or call
1-800-341-7400 to convert your Shares. AVR Shares do not have any conversion
rights.
Payments
to Financial Intermediaries
The
Fund and its affiliated service providers may pay fees as described below to
financial intermediaries (such as broker-dealers,
banks, investment advisers or third-party administrators) whose customers are
shareholders of the Fund.
RULE
12b-1
FEES
ADM
Class, CS Class, CII Class and TR Class
The
Board has adopted a Rule 12b-1 Plan, which allows payment of marketing fees of
up to 0.60% for CS class, 0.35% for CII
class and 0.25% for ADM and TR classes of average net assets to the Distributor
for the sale, distribution, administration and customer servicing of the Fund’s
CS class, CII class, ADM class and TR class. When the Distributor receives Rule
12b-1 Fees, it may pay some or all of them to financial intermediaries whose
customers purchase Shares. Because these Shares pay marketing fees on an ongoing
basis, your investment cost may be higher over time than other shares with
different sales charges and marketing fees.
SERVICE
FEES
ADM Class, PRM
Class, AVR Class, IS Class, SEL Class, SS Class,
CII
Class, CS Class, CAP Class & TR Class
The
Fund may pay Service Fees of up to 0.25% of average net assets to financial
intermediaries or to Federated Shareholder
Services Company (FSSC), a subsidiary of Federated Hermes, for providing
services to shareholders and maintaining shareholder accounts. Intermediaries
that receive Service Fees may include a company affiliated with management of
Federated Hermes. If a financial intermediary receives Service Fees on an
account, it is not eligible to also receive Account Administration Fees on that
same account.
The
Fund has no present intention of paying, accruing or incurring any such Service
Fees on the PRM class and AVR class
until such time as approved by the Fund’s Board of Trustees.
The
ADM class of the Fund has no present intention of paying, accruing or incurring
more than 0.05% of any such Service
Fees until such time as approved by the Fund’s Board of Trustees.
The
IS class of the Fund has no present intention of paying, accruing or incurring
more than 0.05% of any such Service
Fees until such time as approved by the Fund’s Board of Trustees.
The
SEL class of the Fund has no present intention of paying, accruing or incurring
more than 0.02% of any such Service
Fees until such time as approved by the Fund’s Board of Trustees.
ACCOUNT
ADMINISTRATION FEES
ADM Class, PRM
Class, AVR Class, IS Class, SEL Class, SS Class,
CII
Class, CS Class, CAP Class & TR Class
The
Fund may pay Account Administration Fees of up to 0.25% of average net assets to
banks that are not registered as broker-dealers
or investment advisers for providing administrative services to the Fund and its
shareholders. If a financial intermediary receives Account Administration Fees
on an account, it is not eligible to also receive Service Fees or Recordkeeping
Fees on that same account.
The
Fund has no present intention of paying, accruing or incurring any such Account
Administration Fees on the PRM class
and AVR class until such time as approved by the Fund’s Board of
Trustees.
The
ADM class of the Fund has no present intention of paying, accruing or incurring
more than 0.05% of any such Account
Administration Fees until such time as approved by the Fund’s Board of
Trustees.
The
IS class of the Fund has no present intention of paying, accruing or incurring
more than 0.05% of any such Account Administration
Fees until such time as approved by the Fund’s Board of Trustees.
The
SEL class of the Fund has no present intention of paying, accruing or incurring
more than 0.02% of any such Account
Administration Fees until such time as approved by the Fund’s Board of
Trustees.
50
RECORDKEEPING
FEES
The
Fund may pay Recordkeeping Fees on an average-net-assets basis or on a
per-account-per-year basis to financial intermediaries
for providing recordkeeping services to the Fund and its shareholders. If a
financial intermediary receives Recordkeeping Fees on an account, it is not
eligible to also receive Account Administration Fees or Networking Fees on that
same account.
NETWORKING
FEES
The
Fund may reimburse Networking Fees on a per-account-per-year basis to financial
intermediaries for providing administrative
services to the Fund and its shareholders on certain non-omnibus accounts. If a
financial intermediary receives Networking Fees on an account, it is not
eligible to also receive Recordkeeping Fees on that same account.
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, that support the sale of Shares or provide services to Fund
shareholders. The amounts of these payments could be significant, and may create
an incentive for the financial intermediary or its employees or associated
persons to recommend or sell Shares of the Fund to you. Not all financial
intermediaries receive such payments and the amount of compensation may vary by
intermediary. In some cases, such payments may be made by or funded from the
resources of companies affiliated with the Distributor (including the Adviser).
These payments are not reflected in the fees and expenses listed in the fee
table section of the Fund’s Prospectus and described above because they are not
paid by the Fund.
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. These payments may be in addition to payments, as described above,
made by the Fund to the financial intermediary. 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. You can ask your financial intermediary for
information about any payments it receives from the Distributor or the Fund and
any services provided, as well as about fees and/or commissions it
charges.
How to
Purchase Shares
You
may purchase all Shares, with the exception of Advisor Shares and SDG Shares,
through a financial intermediary, directly
from the Fund or through an exchange from another Federated Hermes fund. The
Fund reserves the right to reject any request to purchase or exchange Shares.
New investors must submit a completed New Account Form.
The
Advisor Shares offered through this Prospectus are available for purchase
exclusively to shareholders investing
through certain financial intermediaries that have entered into an agreement
with the Fund’s Distributor with respect to the Advisor Shares. See “Through A
Financial Intermediary” for additional details.
The
SDG Shares offered through this Prospectus are available for purchase
exclusively to shareholders investing through
financial intermediaries that utilize electronic trading platforms that may
support a filtering menu to identify funds or share classes that such
intermediary has determined in its discretion offer or provide “SDG/ESG,
sustainable, or impact” goals or purposes. Omnibus accounts are not permitted
without prior written approval from the Fund. Fully disclosed and partially
disclosed accounts are permitted. No direct fund investments are
permitted.
For
important account information, see the section “Security and Privacy
Protection.”
The
minimum initial investment for Fund Shares is generally $500,000 for
Institutional Shares, Service Shares, Administrative
Shares, Capital Shares and Trust Shares. There is no minimum subsequent
investment amount.
The
minimum initial investment for Cash II Shares is generally $25,000 and there is
no minimum subsequent investment
amount. The minimum initial and subsequent investment amounts for Individual
Retirement Accounts are generally $250 and $100, respectively.
The
minimum initial investment for Cash Series Shares is generally $10,000 with a
$250 minimum subsequent investment
amount.
The
minimum initial investment for Premier Shares and SDG Shares is generally $5
million. There is no minimum subsequent
investment amount.
The
minimum initial investment for Fund Shares is generally $1 million for Advisor
Shares and Select Shares. There is no minimum
subsequent investment amount.
51
An
investor’s minimum investment is calculated by combining all accounts it
maintains with the Fund. Financial intermediaries
may impose higher or lower minimum investment requirements on their customers
than those imposed by the Fund. Keep in mind that financial intermediaries may
charge you fees for their services in connection with your Share
transactions.
THROUGH
A FINANCIAL INTERMEDIARY
Submit
your purchase order to your financial intermediary. Financial intermediaries are
responsible for promptly submitting
purchase orders and payment to the Fund by electronic means permitted by the
Fund, or according to the instructions in the sections “By Telephone” or “By
Mail” below.
If
your financial intermediary submits your order electronically, your order will
be processed and you will be entitled to
dividends pursuant to operating procedures established by the Fund. If your
financial intermediary submits your order by telephone or by mail, your order
will be processed and you will be entitled to dividends as outlined in the
section “By Telephone” or the section “By Mail” below.
If
you deal with a financial intermediary, you will have to follow the financial
intermediary’s procedures for transacting with the
Fund. For more information about how to purchase Shares through your financial
intermediary, you should contact your financial intermediary
directly.
All
Share Classes Except Advisor Shares and SDG Shares
DIRECTLY
FROM THE FUND
By
Telephone
You
may purchase Shares by calling the Fund at 1-800-341-7400.
Your
purchase will be priced at the NAV next calculated after the Fund receives your
order. Receipt of a purchase order by a
financial intermediary will be deemed received by the Fund to the extent that
such financial intermediary has been duly authorized by the Fund to accept such
orders. If you call the Fund by 5:00 p.m. Eastern time (or 3:00 p.m. Eastern
time on those days when the NAV is determined at 3:00 p.m. Eastern time) and
send your payment by wire by the close of the Federal Reserve wire transfer
system, you will be entitled to that day’s dividend.
Send
your wire to:
State
Street Bank and Trust Company
Boston, MA
Dollar Amount of Wire
ABA Number 011000028
BNF: 23026552
Attention: Federated Hermes EDGEWIRE
Wire Order Number, Dealer Number or Group Number
Nominee/Institution Name
Fund Name and Number and Account Number
Boston, MA
Dollar Amount of Wire
ABA Number 011000028
BNF: 23026552
Attention: Federated Hermes EDGEWIRE
Wire Order Number, Dealer Number or Group Number
Nominee/Institution Name
Fund Name and Number and Account Number
If
the Fund does not receive your purchase wire by the close of the Federal Reserve
wire transfer system on your designated
settlement date, your purchase will be canceled and you could be liable for any
losses or fees incurred by the Fund or DST Asset Manager Solutions, Inc., the
Fund’s transfer agent.
You
cannot purchase Shares by wire on days when wire transfers are restricted, even
if the NYSE is open on such days (for
example, Columbus Day and Veterans Day). The Fund does not consider wire
purchase requests received on such days to be in proper form, and will not
process such requests.
By
Mail
You
may purchase Shares by sending your check payable to The
Federated Hermes Funds at the
following address:
The
Federated Hermes Funds
P.O. Box 219318
Kansas City, MO 64121-9318
P.O. Box 219318
Kansas City, MO 64121-9318
If
you send your check by a private
courier or overnight delivery service that
requires a street address, send it to:
The
Federated Hermes Funds
430 W 7th Street
Suite 219318
Kansas City, MO 64105-1407
430 W 7th Street
Suite 219318
Kansas City, MO 64105-1407
52
Please
note your account number on your check. Payment
should be made in U.S. dollars and drawn on a U.S. bank. If your check does not
clear, your purchase will be canceled and you could be liable for any losses or
fees incurred by the Fund or DST Asset Manager Solutions, Inc., the Fund’s
transfer agent. The Fund reserves the right to reject any purchase
request. For example, to protect against check fraud the Fund may reject any
purchase request involving a check that is not made payable to The
Federated Hermes Funds
(including, but not limited to, requests to purchase Shares using third-party
checks) or involving temporary checks or credit card checks.
Your
order will be priced at the NAV next calculated after the Fund receives your
check and you will be entitled to dividends
beginning on the day the check is converted into federal funds (normally the
business day after the check is received).
By
Direct Deposit
You
may establish Payroll Deduction/Direct Deposit arrangements for investments into
the Fund by either calling a Client
Service Representative at 1-800-341-7400; or by completing the Payroll
Deduction/Direct Deposit Form, which is available on FederatedInvestors.com under
“Resources” and then “Literature and Forms,” then “Forms.” You will receive a
confirmation when this service is available.
All
Share Classes Except Advisor Shares
THROUGH
AN EXCHANGE
You
may purchase Shares through an exchange from any Federated Hermes fund or share
class that does not have a stated
sales charge or contingent deferred sales charge, except shares of Federated
Hermes Institutional Money Market Management, Federated Hermes Institutional
Prime Obligations Fund, Federated Hermes Institutional Tax-Free Cash Trust,
Federated Hermes Institutional Prime Value Obligations Fund, Class A Shares
without a sales charge (“no-load Class A Shares”) and Class R Shares of any Fund
provided that you meet any shareholder eligibility and minimum initial
investment requirements for the Shares to be purchased (if applicable), both
accounts have identical registrations, and you must receive a prospectus for the
fund in which you wish to exchange.
By
Online Account Services
You may
access your accounts online to purchase Shares through FederatedInvestors.com’s Shareholder Account
Access system once you have registered for access. Online transactions may be
subject to certain limitations including limitations as to the amount of the
transaction. For more information about the services available through
Shareholder Account Access, please visit FederatedInvestors.com and select “Sign In” and
“Access and Manage Investments,” or call 1-800-341-7400, Option #4 to speak with
a Client Service Representative.
BY
SYSTEMATIC INVESTMENT PROGRAM (SIP)
Once
you have opened an account, you may automatically purchase additional Shares on
a regular basis by completing the SIP
section of the New Account Form or by contacting the Fund or your financial
intermediary. The minimum investment amount for SIPs is $50.
BY
AUTOMATED CLEARING HOUSE (ACH)
Once
you have opened an account, you may purchase additional Shares through a
depository institution that is an ACH member.
This purchase option can be established by completing the appropriate sections
of the New Account Form.
RETIREMENT
INVESTMENTS
You
may purchase Shares as retirement investments (such as qualified plans and IRAs
or transfer or rollover of assets). Call your
financial intermediary or the Fund for information on retirement investments. We
suggest that you discuss retirement investments with your tax adviser. You may
be subject to an annual IRA account fee.
How to
Redeem and Exchange Shares
You
should redeem or exchange Shares:
◾ through a
financial intermediary if you purchased Shares through a financial intermediary;
or
◾ directly
from the Fund if you purchased Shares directly from the Fund.
Redemption
proceeds 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 under certain
circumstances (see “Limitations on Redemption Proceeds”).
The
Advisor Shares and SDG Shares may not be redeemed or exchanged directly with the
Fund.
For
important account information, see the section “Security and Privacy
Protection.”
53
THROUGH
A FINANCIAL INTERMEDIARY
Submit
your redemption or exchange request to your financial intermediary. Financial
intermediaries are responsible for promptly
submitting redemption or exchange requests to the Fund by electronic means
permitted by the Fund, or according to the instructions in the sections “By
Telephone” or “By Mail” below.
If
your financial intermediary submits your redemption or exchange request
electronically, your request will be processed
and your proceeds will be paid pursuant to operating procedures established by
the Fund. If your financial intermediary submits your redemption or exchange
request by telephone or by mail, your request will be processed and your
proceeds will be paid as outlined in the section “By Telephone” or the section
“By Mail” below.
If
you deal with a financial intermediary, you will have to follow the financial
intermediary’s procedures for transacting with the
Fund. For more information about how to redeem or exchange Shares through your
financial intermediary, you should contact your financial intermediary
directly.
DIRECTLY
FROM THE FUND
By
Telephone
You
may redeem or exchange Shares by calling the Fund at 1-800-341-7400. Your
redemption or exchange request will be priced
at the NAV next calculated after the request is received by the Fund. Receipt of
a redemption or exchange order by a financial intermediary will be deemed
received by the Fund to the extent that such financial intermediary has been
duly authorized by the Fund to accept such orders.
If
you call the Fund by 5:00 p.m. Eastern time (or 3:00 p.m. Eastern time on those
days when the NAV is determined at 3:00 p.m.
Eastern time), and your redemption proceeds are wired to you the same day, you
will not be entitled to that day’s dividend.
If
you call the Fund after 5:00 p.m. Eastern time (or 3:00 p.m. Eastern time on
those days when the NAV is determined at 3:00
p.m. Eastern time), you will be entitled to that day’s dividend and your
redemption proceeds will be sent to you the following business day.
By
Mail
You
may redeem or exchange Shares by mailing a written request to the
Fund.
Your
redemption or exchange request will be priced at the NAV next calculated after
the Fund receives your written request in
proper form. If your redemption proceeds are wired to you the same day your
order is priced, you will not be entitled to that day’s dividend. If a check for
your redemption proceeds is mailed to you on the next business day after your
request is priced, you will be entitled to dividends through the day on which
the Fund priced your request.
Send
requests by mail to:
The
Federated Hermes Funds
P.O. Box 219318
Kansas City, MO 64121-9318
P.O. Box 219318
Kansas City, MO 64121-9318
Send
requests by private
courier or overnight delivery service
to:
The
Federated Hermes Funds
430 W 7th Street
Suite 219318
Kansas City, MO 64105-1407
430 W 7th Street
Suite 219318
Kansas City, MO 64105-1407
All
requests must include:
◾ Fund Name
and Share Class, account number and account registration;
◾ amount to
be redeemed or exchanged;
◾ signatures
of all shareholders exactly as registered; and
◾ if
exchanging, the Fund
Name and Share Class, account number and account registration into which you are
exchanging.
Call
your financial intermediary or the Fund if you need special
instructions.
Signature
Guarantees
Signatures
must be guaranteed by a financial institution which is a participant in a
Medallion signature guarantee program
if:
◾ your
redemption will be sent to an address other than the address of
record;
◾ your
redemption will be sent to an address of record that was changed within the last
30 days;
◾ a
redemption is payable to someone other than the shareholder(s) of record;
or
◾ transferring
into another fund with a different shareholder registration.
54
A
Medallion signature guarantee is designed to protect your account from fraud.
Obtain a Medallion signature guarantee from a
bank or trust company, savings association, credit union or broker, dealer or
securities exchange member. A
notary public cannot provide a signature guarantee.
By
Online Account Services
You may
access your accounts online to redeem or exchange Shares through FederatedInvestors.com’s Shareholder Account
Access system once you have registered for access. Online transactions may be
subject to certain limitations including limitations as to the amount of the
transaction. For more information about the services available through
Shareholder Account Access, please visit FederatedInvestors.com and select “Sign In” and
“Access and Manage Investments,” or call 1-800-341-7400, Option #4 to speak with
a Client Service Representative.
PAYMENT
METHODS FOR REDEMPTIONS
Your
redemption proceeds will be mailed by check to your address of record. The
following payment options are available
if you complete the appropriate section of the New Account Form or an Account
Service Options Form. These payment options require a signature guarantee if
they were not established when the account was opened:
◾ An
electronic transfer to your account at a financial institution that is an ACH
member; or
◾ Wire
payment to your account at a domestic commercial bank that is a Federal Reserve
System member.
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
way:
◾ 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.
LIMITATIONS
ON REDEMPTION PROCEEDS
Redemption
proceeds will be wired or mailed within one business day after receiving a
request in proper form. The Fund may
delay the payment of redemption proceeds in the following
circumstances:
◾ to allow
your purchase to clear (as discussed below); or
◾ during any
period when the Federal Reserve wire or Federal Reserve banks are closed (in
which case redemption proceeds will be wired within one business day after the
reopening of the Federal Reserve wire or Federal Reserve banks).
In
addition, the Fund may suspend redemptions, or delay the payment of redemption
proceeds, in the following
circumstances:
◾ during any
period when the NYSE is closed or restricted (in which case redemption proceeds
will be wired within one business day after the reopening of the
NYSE);
◾ during any
period in which an emergency exists as a result of which: (1) disposal of the
securities owned by the Fund is not reasonably practicable; or (2) it is not
reasonably practicable for the Fund to fairly determine the net asset value of
its shares;
◾ during any
period during which the SEC has, by rule or regulation, deemed that: (1) trading
shall be restricted; or (2) an emergency exists;
◾ during any
period that the SEC may by order permit for your protection; or
◾ during any
period during which the Fund as part of a necessary liquidation of the Fund, has
properly postponed and/or suspended redemption of Shares and payment in
accordance with federal securities laws.
If
you request a redemption of Shares recently purchased by check (including a
cashier’s check or certified check), money
order, bank draft or ACH, your redemption proceeds may not be made available for
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, your
purchase order will be canceled and you will be responsible for any losses
incurred by the Fund as a result of your canceled order.
Pursuant
to rules under Section 22(e) of the 1940 Act, while it is unlikely that the
Fund’s weekly liquid assets would fall below 10%
given the Fund’s investment strategy and operation as a government money market
fund, the Board, in its discretion, may suspend redemptions in the Fund and
approve the liquidation of the Fund if the Fund’s weekly liquid assets were to
fall below 10% and the Board determines it would not be in the best interests of
the Fund to continue operating. The Board also may suspend redemptions in the
Fund and approve the liquidation of the Fund if the Board
55
determines
that the deviation between the Fund’s amortized cost price per share and its
market-based NAV may result in material dilution or other unfair results to
investors or existing shareholders. Prior to suspending redemptions, the Fund
would be required to notify the SEC of its decision to liquidate and suspend
redemptions. If the Fund ceases honoring redemptions and determines to
liquidate, the Fund expects that it would notify shareholders on the Fund’s
website or by press release. Distributions to shareholders of liquidation
proceeds may occur in one or more disbursements.
You
will not accrue interest or dividends on uncashed redemption checks from the
Fund when checks are undeliverable and
returned to the Fund.
REDEMPTIONS
FROM RETIREMENT ACCOUNTS
In
the absence of your specific instructions, 10% of the value of your redemption
from a retirement account in the Fund may be
withheld for taxes. This withholding only applies to certain types of retirement
accounts.
EXCHANGE
PRIVILEGE
You
may exchange Shares of the Fund for shares of any Federated Hermes fund or share
class that does not have a stated
sales charge or contingent deferred sales charge, except shares of Federated
Hermes Institutional Money Market Management, Federated Hermes Institutional
Prime Obligations Fund, Federated Hermes Institutional Tax-Free Cash Trust,
Federated Hermes Institutional Prime Value Obligations Fund, no-load Class A
Shares and Class R Shares of any Fund.
To
do this, you must:
◾ meet any
applicable shareholder eligibility requirements;
◾ ensure
that the account registrations are identical;
◾ meet any
applicable minimum initial investment requirements; and
◾ receive a
prospectus for the fund into which you wish to exchange.
An
exchange is treated as a redemption and a subsequent purchase, and is a taxable
transaction. The Fund reserves the right to
reject any request to purchase or exchange Shares. The Fund may modify or
terminate the exchange privilege at any time.
Systematic
Withdrawal/Exchange Program
You
may automatically redeem or exchange Shares. The minimum amount for all new or
revised systematic redemptions
or exchanges of Shares is $50 per transaction per fund. Complete the appropriate
section of the New Account Form or an Account Service Options Form or contact
your financial intermediary or the Fund. Your account value must meet the
minimum initial investment amount at the time the program is established. This
program may reduce, and eventually deplete, your account. Payments should not be
considered yield or income.
CHECKWRITING
CII,
CS and SS
You
may request checks to redeem your Fund Shares. Your account will continue to
receive the daily dividend declared on the
Shares being redeemed until the check is presented for payment.
DEBIT
CARD
CII,
CS and SS
You
may request a debit card account that allows you to redeem Shares. There is an
annual fee for this service that the Fund will
automatically deduct from your account.
Any
attempt to redeem Shares through checkwriting or debit card before the purchase
instrument has cleared will be automatically
rejected.
ADDITIONAL
CONDITIONS
Telephone
Transactions
The
Fund will record your telephone instructions. If the Fund does not follow
reasonable procedures, it may be liable for losses
due to unauthorized or fraudulent telephone instructions.
Share
Certificates
The
Fund no longer issues share certificates. If you are redeeming or exchanging
Shares represented by certificates previously
issued by the Fund, you must return the certificates with your written
redemption or exchange request. For your protection, send your certificates by
registered or certified mail, but do not endorse them.
56
Security
and Privacy Protection
ONLINE
ACCOUNT and TELEPHONE ACCESS SECURITY
Federated
Hermes will not be responsible for losses that result from unauthorized
transactions, unless Federated Hermes does not
follow procedures designed to verify your identity. When initiating a
transaction by telephone or online, shareholders should be aware that any person
with access to your account and other personal information including PINs
(Personal Identification Numbers) may be able to submit instructions by
telephone or online. Shareholders are responsible for protecting their identity
by using strong usernames and complex passwords which utilize combinations of
mixed case letters, numbers and symbols, and change passwords and PINs
frequently.
Using
FederatedInvestors.com’s Account
Access website means you are consenting to sending and receiving personal
financial information over the Internet, so you should be sure you are
comfortable with the risks. You will be required to accept the terms of an
online agreement and to establish and utilize a password in order to access
online account services. The Transfer Agent has adopted security procedures to
confirm that Internet instructions are genuine. The Transfer Agent will also
send you written confirmation of share transactions. The Transfer Agent, the
Fund and any of its affiliates will not be liable for losses or expenses that
occur from fraudulent Internet instructions reasonably believed to be
genuine.
The
Transfer Agent or the Fund will employ reasonable procedures to confirm that
telephone transaction requests are genuine,
which may include recording calls, asking the caller to provide certain personal
identification information, sending you written confirmation, or requiring other
confirmation security procedures. The Transfer Agent, the Fund and any of its
affiliates will not be liable for relying on instructions submitted by telephone
that the Fund reasonably believes to be genuine.
ANTI-MONEY
LAUNDERING COMPLIANCE
To
help the government fight the funding of terrorism and money laundering
activities, federal law requires financial institutions
to obtain, verify and record information that identifies each new customer who
opens a Fund account and to determine whether such person’s name appears on
governmental lists of known or suspected terrorists or terrorist organizations.
Pursuant to the requirements under the USA PATRIOT Act, the information obtained
will be used for compliance with the USA PATRIOT Act or other applicable laws,
regulations and rules in connection with money laundering, terrorism or other
illicit activities.
Information
required includes your name, residential or business address, date of birth (for
an individual), and other information
that identifies you, including your social security number, tax identification
number or other identifying number. The Fund cannot waive these requirements.
The Fund is required by law to reject your Account Application if the required
information is not provided. If, after reasonable effort, the Fund is unable to
verify your identity or that of any other person(s) authorized to act on your
behalf, or believes it has identified potentially suspicious, fraudulent or
criminal activity, the Fund reserves the right to close your account and redeem
your shares at the next calculated NAV without your permission. Any applicable
contingent deferred sales charge (CDSC) will be assessed upon redemption of your
shares.
The
Fund has a strict policy designed to protect the privacy of your personal
information. A copy of Federated Hermes’ privacy
policy notice was given to you at the time you opened your account. The Fund
sends a copy of the privacy notice to you annually. You may also obtain the
privacy notice by calling the Fund, or through FederatedInvestors.com.
Account
and Share Information
ACCOUNT
ACTIVITY
You
will receive periodic statements reporting all account activity, including
systematic transactions and dividends paid by the
Fund.
DIVIDENDS
AND CAPITAL GAINS
The
Fund declares any dividends daily and pays them monthly to
shareholders.
Dividends
are based on estimates of income, expenses and shareholder activity for the
Fund. Actual income, expenses and
shareholder activity may differ from estimates and differences, if any, will be
included in the calculation of subsequent dividends. You may obtain an estimate
of the Fund’s daily dividend factor by calling the Fund at 1-800-341-7400 or at
FederatedInvestors.com.
57
From
time to time, the Fund may realize capital gains or losses. If capital gains or
losses were to occur, they could result in an
increase or decrease in dividends. 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. Your dividends
and capital gains distributions will be automatically reinvested in additional
Shares without a sales charge, unless you elect cash payments. Dividends may
also be reinvested without sales charges in shares of any class of any other
Federated Hermes fund of which you are already a shareholder.
Important
information regarding the Fund’s distributions, including the percentage of the
Fund’s distributions that are attributable
to capital gains during the calendar year (if any), is available via the link to
the Fund and share class name at FederatedInvestors.com/FundInformation.
Small
Distributions and Uncashed Checks
Generally,
dividend and/or capital gain distributions payable by check in an amount of less
than $25 will be automatically
reinvested in additional shares. This policy does not apply if you have elected
to receive cash distributions that are directly deposited into your bank account
via wire or ACH.
Additionally,
if one or more dividend or capital gain distribution checks are returned as
“undeliverable,” or remain uncashed
for 180 days, all subsequent dividend and capital gain distributions will be
reinvested in additional shares. No interest will accrue on amounts represented
by uncashed distribution checks. For questions on whether reinvestment applies
to your distributions, please contact a Client Service Representative at
1-800-341-7400.
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.
ACCOUNTS
WITH LOW BALANCES
Federated
Hermes reserves the right to close accounts if redemptions or exchanges cause
the account balance to fall
below:
◾ $1 million
for the SEL and AVR classes;
◾ $10,000
for the CS class (or in the case of IRAs, $250);
◾ $25,000
for the CII class (or in the case of IRAs, $250);
◾ $500,000
for the IS, SS, ADM, CAP and TR classes;
◾ $5 million
for the PRM and SDG classes.
Before
an account is closed, you will be notified and allowed at least 30 days to
purchase additional Shares to meet the
minimum.
TAX
INFORMATION
The
Fund sends an IRS Form 1099-DIV and an annual statement of your account activity
to assist you in completing your
federal, state and local tax returns. Fund distributions of dividends and
capital gains are taxable to you 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 you as
ordinary income. Distributions of net long-term capital gains are taxable to you
as long-term capital gains regardless of how long you have owned your
Shares.
Fund
distributions are expected to be primarily dividends. Redemptions and exchanges
are taxable sales. Please consult your tax
adviser regarding your federal, state and local tax liability.
FREQUENT
TRADING POLICIES
Given
the short-term nature of the Fund’s investments and its use of the amortized
cost method for calculating the NAV of Fund
Shares, the Fund does not anticipate that in the normal case frequent or
short-term trading into and out of the Fund will have significant adverse
consequences for the Fund and its shareholders. For this reason and because the
Fund is intended to be used as a liquid short-term investment, the Fund’s Board
has not adopted policies or procedures to monitor or discourage frequent or
short-term trading of the Fund’s Shares. Regardless of their frequency or
short-term nature, purchases and redemptions of Fund Shares can have adverse
effects on the management of the Fund’s portfolio and its
performance.
58
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 a materially adverse impact on
the Federated Hermes funds or their shareholders. If you plan to exchange your
Fund Shares for 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 via the link to the Fund
and share class name at FederatedInvestors.com. Such
information is posted on the website five business days after both mid-month and
month-end then remains posted on the website 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 until
replaced by the information for the succeeding month. The summary portfolio
composition information may include effective average maturity of the Fund’s
portfolio and/or percentage breakdowns of the portfolio by credit quality tier,
effective maturity range and type of security. The Fund’s WAM and WAL, Shadow
NAV (market-based value of the Fund’s portfolio), Daily and Weekly Liquid Assets
and Daily Flows are posted every business day and remain posted on the website
for six months thereafter.
You
may also access portfolio information via the link to the Fund and share class
name at FederatedInvestors.com. The
Fund’s Annual and Semi-Annual Shareholder Reports contain complete listings of
the Fund’s portfolio holdings as of the end of the Fund’s second and fourth
fiscal quarters. These reports are also available on the SEC’s website at
sec.gov.
The
Fund files with the SEC a complete schedule of its portfolio holdings as of the
close of each month on “Form
N-MFP.” Form N-MFP is available on the SEC’s website at sec.gov. You may
access Form N-MFP via the link to the Fund and share class name at FederatedInvestors.com.
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. 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 in assets as of December 31,
2021. 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 74 registered investment companies and also
manages sub-advised funds. The Adviser’s
assets under management totaled approximately $399.6 billion in assets as of
December 31, 2021.
ADVISORY
FEES
The
Fund’s investment advisory contract provides for payment to the Adviser of an
annual investment advisory fee of 0.20% of
the Fund’s average daily net assets. The Adviser may voluntarily waive a portion
of its fee or reimburse the Fund for certain operating expenses. The Adviser and
its affiliates have also agreed to certain “Fee Limits” as described in the
footnote to the “Risk/Return Summary: Fees and Expenses” table found in the
“Fund Summary” section of the Prospectus.
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 July 31 and January 31,
respectively.
SDG
Shares
Federated
Hermes and/or its affiliates will donate 5% of the quarterly management fee
revenue and administrative fee revenue attributable to
the SDG class, net of any waivers (“net class revenue”), to a designated
organization whose mission is aligned with one or more of the United Nations
Sustainable Development Goals (UN SDGs). These 17 UN SDGs
seek to
advance a shared vision and to accelerate responses to global challenges in
order to build more equal,
59
inclusive
and sustainable economies and societies. Federated Hermes expects to make the
contribution on at least a quarterly basis and has sole discretion to designate
the organization or organizations and to increase, decrease or terminate the
contribution at any time. Federated Hermes and/or its affiliates’ donation of an
amount equal to a percentage of the quarterly net class revenue to a designated
organization may result in a tax benefit for Federated Hermes and/or its
affiliates.
Financial
Information
FINANCIAL
HIGHLIGHTS
The
Financial Highlights will help you understand the Fund’s financial performance
for its past five fiscal years, or since
inception, if the life of the Fund’s share class is shorter. 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.
The
information has
been audited
by KPMG LLP, an independent registered public accounting firm, whose report,
along with the Fund’s audited financial statements, is included in the Annual
Report.
Effective
August 1, 2019, Class R Shares were re-designated as Select Shares. The
Financial Highlights for each of the fiscal years ended July
31, 2019 and 2018 reflect the previous designation of Shares.
60
Financial
Highlights–Select
Shares1
(For a Share
Outstanding Throughout Each Period)
|
|
Year
Ended July 31, | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Net
Asset Value, Beginning of Period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Income
From Investment Operations: |
|
|
|
|
|
|
Net
investment income |
0.003 |
0.0002 |
0.012 |
0.012 |
0.003 |
|
Net
realized gain (loss) |
(0.000)2 |
0.0002 |
(0.001) |
(0.000)2 |
0.0002 |
|
Total
From Investment Operations |
0.003 |
0.0002 |
0.011 |
0.012 |
0.003 |
|
Less
Distributions: |
|
|
|
|
|
|
Distributions
from net investment income |
(0.003) |
(0.000)2 |
(0.011) |
(0.012) |
(0.003) |
|
Distributions
from net realized gain |
— |
— |
(0.000)2 |
— |
(0.000)2 |
|
Total
Distributions |
(0.003) |
(0.000)2 |
(0.011) |
(0.012) |
(0.003) |
|
Net
Asset Value, End of Period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Total
Return3 |
0.31% |
0.02% |
1.12% |
1.23% |
0.31% |
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
Net
expenses4 |
0.09% |
0.11% |
0.17% |
1.15% |
1.11% |
|
Net
investment income |
0.25% |
0.02% |
0.74% |
1.21% |
0.24% |
|
Expense
waiver/reimbursement5 |
0.22% |
0.20% |
0.14% |
0.13% |
0.17% |
|
Supplemental
Data: |
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
$5,921,339 |
$8,073,883 |
$7,328,261 |
$3,307 |
$2,365 |
|
1 |
Effective
August 1, 2019, the Class R Shares were re-designated as Select
Shares. |
|
2 |
Represents
less than $0.001. |
|
3 |
Based
on net asset value. |
|
4 |
Amount
does not reflect net expenses incurred by investment companies in which
the Fund may invest. |
|
5 |
This
expense decrease is reflected in both the net expense and the net
investment income ratios shown above. Amount does not reflect expense
waiver/
reimbursement
recorded by investment companies in which the Fund may
invest. |
Further information
about the Fund’s performance is contained in the Fund’s Annual Report, dated
July 31, 2022, which can be obtained free of charge.
61
Financial
Highlights–Institutional
Shares
(For a Share
Outstanding Throughout Each Period)
|
|
Year
Ended July 31, | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Net
Asset Value, Beginning of Period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Income
From Investment Operations: |
|
|
|
|
|
|
Net
investment income |
0.003 |
0.0001 |
0.011 |
0.021 |
0.013 |
|
Net
realized gain (loss) |
(0.000)1 |
— |
(0.000)1 |
(0.000)1 |
0.0001 |
|
Total
From Investment Operations |
0.003 |
0.0001 |
0.011 |
0.021 |
0.013 |
|
Less
Distributions: |
|
|
|
|
|
|
Distributions
from net investment income |
(0.003) |
(0.000)1 |
(0.011) |
(0.021) |
(0.013) |
|
Distributions
from net realized gain |
— |
— |
(0.000)1 |
— |
(0.000)1 |
|
Total
Distributions |
(0.003) |
(0.000)1 |
(0.011) |
(0.021) |
(0.013) |
|
Net
Asset Value, End of Period |
$1.00 |
||||