Federated Hermes Adviser Series
07/28/2026 | Press release | Distributed by Public on 07/28/2026 08:16
Annual Report by Investment Company (Form N-CSR)
United States Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-23259
(Investment Company Act File Number)
Federated Hermes Adviser Series
(Exact Name of Registrant as Specified in Charter)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
Peter J. Germain, Esquire
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 2026-05-31
Date of Reporting Period: 2026-05-31
| Item 1. | Reports to Stockholders |
Federated Hermes Emerging Markets Equity Fund
Institutional Shares / PIEFX
Annual Shareholder Report | May 31, 2026
A Portfolio of Federated Hermes Adviser Series
This annual shareholder report contains important information about the Federated Hermes Emerging Markets Equity Fund (the "Fund") for the period of June 1, 2025 to May 31, 2026. You can find additional information about the Fund at FederatedHermes.com/us/FundInformation. You can also request this information by contacting us at 1-800-341-7400, Option 4, or your financial advisor.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Institutional Shares | $132 | 0.98% |
Management's Discussion of Fund Performance
The following discussion compares the performance of the Fund to the MSCI Emerging Markets Index to show how the Fund's performance compares to the returns of similar investments for the reporting period. See the Average Annual Total Returns table below for the returns of the Fund and related indexes. The Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of emerging market equity securities.
Top Contributors to Performance
-
Country allocation, sector allocation and stock selection all contributed positively to Fund relative performance.
-
By country, stock selection in Korea, Taiwan, and Turkey aided performance.
-
By sector, stock selection in Technology, Consumer Staples and Materials aided performance.
-
Top individual Fund holdings that contributed to performance included: SK Hynix, Inc., a Korean memory manufacturer; Taiwan Semi Manufacturing Co., a Taiwanese semiconductor manufacturer; and Samsung Electro-Mechanics, a Korean MLCC and substrate manufacturer.
Top Detractors from Performance
-
By country, stock selection in India, Brazil and Indonesia detracted from performance.
-
By sector, stock selection in Consumer Discretionary, Financials and Industrials detracted from performance.
-
Top individual Fund holdings that detracted from performance included: Mercadolibre, Inc., a Latin American eCommerce and fintech company; QFIN Holdings, a Chinese fintech company; and PT Bank Central Asia, an Indonesian bank.
Fund Performance
Keep in mind that the Fund's past performance is not a predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Cumulative Performance: March 31, 2017 through May 31, 2026
Initial Investment of $10,000
| Average Annual Total Returns | |||
| 1 Year | 5 Years | Since Inception | |
| Institutional Shares1 | 70.29% | 7.67% | 12.77% |
| MSCI Emerging Markets Index | 54.31% | 7.54% | 9.38% |
| MSCI Emerging Markets Growth Index | 56.17% | 5.71% | 10.03% |
| Morningstar Diversified Emerging Markets Funds Category Average | 49.94% | 7.09% | 8.61% |
|
1
|
Commenced operations on November 15, 2019. The Fund is the successor to the PNC Emerging Markets Equity Fund (the "Predecessor Fund") pursuant to a reorganization involving the Fund and the Predecessor Fund. For periods prior to the reorganization, the performance information is historical information for the Predecessor Fund which commenced operations on March 31, 2017.
|
Visit FederatedHermes.com/us/FundInformation and click on the link to your fund and share class for more recent performance information.
Key Fund Statistics
| Net Assets | $75,101,718 |
| Number of Investments | 54 |
| Portfolio Turnover | 26% |
| Total Advisory Fees Paid | $67,728 |
Fund Holdings
Top Countries
(% of Net Assets)
(% of Net Assets)
Top Sectors
(% of Net Assets)
(% of Net Assets)
Availability of Additional Information
Additional information is available on the Fund's website at FederatedHermes.com/us/FundInformation, including its:
• prospectus • financial information • holdings • proxy voting information
• prospectus • financial information • holdings • proxy voting information
CUSIP 31423A598
Q454742-A (7/26)
FederatedHermes.com/us
Federated Securities Corp., Distributor
© 2026 Federated Hermes, Inc.
Federated Hermes Emerging Markets Equity Fund
Federated Hermes Emerging Markets Equity Fund
Class R6 Shares / FRIEX
Annual Shareholder Report | May 31, 2026
A Portfolio of Federated Hermes Adviser Series
This annual shareholder report contains important information about the Federated Hermes Emerging Markets Equity Fund (the "Fund") for the period of June 1, 2025 to May 31, 2026. You can find additional information about the Fund at FederatedHermes.com/us/FundInformation. You can also request this information by contacting us at 1-800-341-7400, Option 4, or your financial advisor.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Class R6 Shares | $124 | 0.92% |
Management's Discussion of Fund Performance
The following discussion compares the performance of the Fund to the MSCI Emerging Markets Index to show how the Fund's performance compares to the returns of similar investments for the reporting period. See the Average Annual Total Returns table below for the returns of the Fund and related indexes. The Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of emerging market equity securities.
Top Contributors to Performance
-
Country allocation, sector allocation and stock selection all contributed positively to Fund relative performance.
-
By country, stock selection in Korea, Taiwan, and Turkey aided performance.
-
By sector, stock selection in Technology, Consumer Staples and Materials aided performance.
-
Top individual Fund holdings that contributed to performance included: SK Hynix, Inc., a Korean memory manufacturer; Taiwan Semi Manufacturing Co., a Taiwanese semiconductor manufacturer; and Samsung Electro-Mechanics, a Korean MLCC and substrate manufacturer.
Top Detractors from Performance
-
By country, stock selection in India, Brazil and Indonesia detracted from performance.
-
By sector, stock selection in Consumer Discretionary, Financials and Industrials detracted from performance.
-
Top individual Fund holdings that detracted from performance included: Mercadolibre, Inc., a Latin American eCommerce and fintech company; QFIN Holdings, a Chinese fintech company; and PT Bank Central Asia, an Indonesian bank.
Fund Performance
Keep in mind that the Fund's past performance is not a predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Cumulative Performance: March 31, 2017 through May 31, 2026
Initial Investment of $10,000
| Average Annual Total Returns | |||
| 1 Year | 5 Years | Since Inception | |
| Class R6 Shares1,2 | 70.38% | 7.72% | 12.80% |
| MSCI Emerging Markets Index | 54.31% | 7.54% | 9.38% |
| MSCI Emerging Markets Growth Index | 56.17% | 5.71% | 10.03% |
| Morningstar Diversified Emerging Markets Funds Category Average | 49.94% | 7.09% | 8.61% |
|
1
|
The Fund's Class R6 Shares commenced operations on August 26, 2021. For the periods prior to the commencement of operations of the Fund's Class R6 Shares, the performance information shown is for the Fund's Institutional Shares.
|
|
2
|
The Fund is the successor to the PNC Emerging Markets Equity Fund (the "Predecessor Fund") pursuantto a reorganization involving the Fund and the Predecessor Fund that occurred on November 15, 2019. For periods prior to the reorganization, the performance information is historicalinformation for the Predecessor Fund's Class I Shares which commenced operations on March 31, 2017.
|
Visit FederatedHermes.com/us/FundInformation and click on the link to your fund and share class for more recent performance information.
Key Fund Statistics
| Net Assets | $75,101,718 |
| Number of Investments | 54 |
| Portfolio Turnover | 26% |
| Total Advisory Fees Paid | $67,728 |
Fund Holdings
Top Countries
(% of Net Assets)
(% of Net Assets)
Top Sectors
(% of Net Assets)
(% of Net Assets)
Availability of Additional Information
Additional information is available on the Fund's website at FederatedHermes.com/us/FundInformation, including its:
• prospectus • financial information • holdings • proxy voting information
• prospectus • financial information • holdings • proxy voting information
CUSIP 31423A580
Q454742-B (7/26)
FederatedHermes.com/us
Federated Securities Corp., Distributor
© 2026 Federated Hermes, Inc.
Federated Hermes Emerging Markets Equity Fund
Federated Hermes International
Equity Fund
Equity Fund
Class A Shares / PMIEX
Annual Shareholder Report | May 31, 2026
A Portfolio of Federated Hermes Adviser Series
This annual shareholder report contains important information about the Federated Hermes International Equity Fund (the "Fund") for the period of June 1, 2025 to May 31, 2026. You can find additional information about the Fund at FederatedHermes.com/us/FundInformation. You can also request this information by contacting us at 1-800-341-7400, Option 4, or your financial advisor.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Class A Shares | $88 | 0.78% |
Management's Discussion of Fund Performance
The following discussion compares the performance of the Fund to the MSCI ACWI ex USA Index to show how the Fund's performance compares to the returns of similar investments for the reporting period. See the Average Annual Total Returns table below for the returns of the Fund and related indexes. The Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of equity securities.
Top Contributors to Performance
-
By country, stock selection in Taiwan, Canada and Spain aided performance.
-
By sector, stock selection in Financials, Energy and Healthcare aided performance.
-
Top individual outperforming Fund holdings included: TSMC, a Taiwanese semi manufacturer; SK Hynix, Inc., a Korean memory manufacturer; and Aspeed Technology, a Taiwanese chip design company.
Top Detractors from Performance
-
Country allocation and sector allocation detracted from Fund performance.
-
By country, stock selection in China, Japan and Germany detracted from performance.
-
By sector, stock selection in Consumer Discretionary, Industrials and Communication Services detracted from performance.
-
Top individual Fund holdings that detracted from performance included: Mercadolibre, Inc., a Latin American eCommerce and fintech company; SAP, a German software company; and QFIN Holdings, a Chinese fintech company.
Fund Performance
Keep in mind that the Fund's past performance is not a predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Cumulative Performance: May 31, 2016 through May 31, 2026
Initial Investment of $10,000
| Average Annual Total Returns | |||
| 1 Year | 5 Years | 10 Years | |
| Class A Shares - with sales load1 | 18.62% | 3.95% | 8.64% |
| Class A Shares - without sales load1 | 25.52% | 5.13% | 9.26% |
| MSCI ACWI ex USA Index | 32.77% | 8.77% | 9.82% |
| Morningstar Foreign Large Blend Funds Category Average | 24.45% | 7.97% | 8.79% |
|
1
|
The Fund is the successor to the PNC International Equity Fund (the "Predecessor Fund"), pursuant to a reorganization involving the Fund and the Predecessor Fund that occurred on November 15, 2019. For periods prior to the reorganization, the performance information is historical information for the Predecessor Fund.
|
Visit FederatedHermes.com/us/FundInformation and click on the link to your fund and share class for more recent performance information.
Key Fund Statistics
| Net Assets | $185,237,643 |
| Number of Investments | 76 |
| Portfolio Turnover | 88% |
| Total Advisory Fees Paid | $850,071 |
Fund Holdings
Top Countries
(% of Net Assets) 1
(% of Net Assets) 1
Top Sectors
(% of Net Assets) 1
(% of Net Assets) 1
1 Reflects the pro rata portfolio composition of underlying affiliated investment companies (other than an affiliated money market mutual fund) in which the Fund invested greater than 10% of its net assets as of the date specified above. Accordingly, the percentages of net assets shown in the table will differ from those presented on the Portfolio of Investments.
Availability of Additional Information
Additional information is available on the Fund's website at FederatedHermes.com/us/FundInformation, including its:
• prospectus • financial information • holdings • proxy voting information
• prospectus • financial information • holdings • proxy voting information
CUSIP 31423A713
Q454745-A (7/26)
FederatedHermes.com/us
Federated Securities Corp., Distributor
© 2026 Federated Hermes, Inc.
Federated Hermes International Equity Fund
Federated Hermes International
Equity Fund
Equity Fund
Class C Shares / PIUCX
Annual Shareholder Report | May 31, 2026
A Portfolio of Federated Hermes Adviser Series
This annual shareholder report contains important information about the Federated Hermes International Equity Fund (the "Fund") for the period of June 1, 2025 to May 31, 2026. You can find additional information about the Fund at FederatedHermes.com/us/FundInformation. You can also request this information by contacting us at 1-800-341-7400, Option 4, or your financial advisor.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Class C Shares | $175 | 1.56% |
Management's Discussion of Fund Performance
The following discussion compares the performance of the Fund to the MSCI ACWI ex USA Index to show how the Fund's performance compares to the returns of similar investments for the reporting period. See the Average Annual Total Returns table below for the returns of the Fund and related indexes. The Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of equity securities.
Top Contributors to Performance
-
By country, stock selection in Taiwan, Canada and Spain aided performance.
-
By sector, stock selection in Financials, Energy and Healthcare aided performance.
-
Top individual outperforming Fund holdings included: TSMC, a Taiwanese semi manufacturer; SK Hynix, Inc., a Korean memory manufacturer; and Aspeed Technology, a Taiwanese chip design company.
Top Detractors from Performance
-
Country allocation and sector allocation detracted from Fund performance.
-
By country, stock selection in China, Japan and Germany detracted from performance.
-
By sector, stock selection in Consumer Discretionary, Industrials and Communication Services detracted from performance.
-
Top individual Fund holdings that detracted from performance included: Mercadolibre, Inc., a Latin American eCommerce and fintech company; SAP, a German software company; and QFIN Holdings, a Chinese fintech company.
Fund Performance
Keep in mind that the Fund's past performance is not a predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Cumulative Performance: May 31, 2016 through May 31, 2026
Initial Investment of $10,000
| Average Annual Total Returns | |||
| 1 Year | 5 Years | 10 Years | |
| Class C Shares - with sales load1 | 24.20% | 4.33% | 8.61% |
| Class C Shares - without sales load1 | 24.55% | 4.33% | 8.61% |
| MSCI ACWI ex USA Index | 32.77% | 8.77% | 9.82% |
| Morningstar Foreign Large Blend Funds Category Average | 24.45% | 7.97% | 8.79% |
|
1
|
The Fund is the successor to the PNC International Equity Fund (the "Predecessor Fund"), pursuant to a reorganization involving the Fund and the Predecessor Fund that occurred on November 15, 2019. For periods prior to the reorganization, the performance information is historical information for the Predecessor Fund.
|
Visit FederatedHermes.com/us/FundInformation and click on the link to your fund and share class for more recent performance information.
Key Fund Statistics
| Net Assets | $185,237,643 |
| Number of Investments | 76 |
| Portfolio Turnover | 88% |
| Total Advisory Fees Paid | $850,071 |
Fund Holdings
Top Countries
(% of Net Assets) 1
(% of Net Assets) 1
Top Sectors
(% of Net Assets) 1
(% of Net Assets) 1
1 Reflects the pro rata portfolio composition of underlying affiliated investment companies (other than an affiliated money market mutual fund) in which the Fund invested greater than 10% of its net assets as of the date specified above. Accordingly, the percentages of net assets shown in the table will differ from those presented on the Portfolio of Investments.
Availability of Additional Information
Additional information is available on the Fund's website at FederatedHermes.com/us/FundInformation, including its:
• prospectus • financial information • holdings • proxy voting information
• prospectus • financial information • holdings • proxy voting information
CUSIP 31423A697
Q454745-B (7/26)
FederatedHermes.com/us
Federated Securities Corp., Distributor
© 2026 Federated Hermes, Inc.
Federated Hermes International Equity Fund
Federated Hermes International
Equity Fund
Equity Fund
Institutional Shares / PIUIX
Annual Shareholder Report | May 31, 2026
A Portfolio of Federated Hermes Adviser Series
This annual shareholder report contains important information about the Federated Hermes International Equity Fund (the "Fund") for the period of June 1, 2025 to May 31, 2026. You can find additional information about the Fund at FederatedHermes.com/us/FundInformation. You can also request this information by contacting us at 1-800-341-7400, Option 4, or your financial advisor.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Institutional Shares | $59 | 0.52% |
Management's Discussion of Fund Performance
The following discussion compares the performance of the Fund to the MSCI ACWI ex USA Index to show how the Fund's performance compares to the returns of similar investments for the reporting period. See the Average Annual Total Returns table below for the returns of the Fund and related indexes. The Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of equity securities.
Top Contributors to Performance
-
By country, stock selection in Taiwan, Canada and Spain aided performance.
-
By sector, stock selection in Financials, Energy and Healthcare aided performance.
-
Top individual outperforming Fund holdings included: TSMC, a Taiwanese semi manufacturer; SK Hynix, Inc., a Korean memory manufacturer; and Aspeed Technology, a Taiwanese chip design company.
Top Detractors from Performance
-
Country allocation and sector allocation detracted from Fund performance.
-
By country, stock selection in China, Japan and Germany detracted from performance.
-
By sector, stock selection in Consumer Discretionary, Industrials and Communication Services detracted from performance.
-
Top individual Fund holdings that detracted from performance included: Mercadolibre, Inc., a Latin American eCommerce and fintech company; SAP, a German software company; and QFIN Holdings, a Chinese fintech company.
Fund Performance
Keep in mind that the Fund's past performance is not a predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Cumulative Performance: May 31, 2016 through May 31, 2026
Initial Investment of $10,000
| Average Annual Total Returns | |||
| 1 Year | 5 Years | 10 Years | |
| Institutional Shares1 | 25.90% | 5.41% | 9.55% |
| MSCI ACWI ex USA Index | 32.77% | 8.77% | 9.82% |
| Morningstar Foreign Large Blend Funds Category Average | 24.45% | 7.97% | 8.79% |
|
1
|
The Fund is the successor to the PNC International Equity Fund (the "Predecessor Fund"), pursuant to a reorganization involving the Fund and the Predecessor Fund that occurred on November 15, 2019. For periods prior to the reorganization, the performance information is historical information for the Predecessor Fund.
|
Visit FederatedHermes.com/us/FundInformation and click on the link to your fund and share class for more recent performance information.
Key Fund Statistics
| Net Assets | $185,237,643 |
| Number of Investments | 76 |
| Portfolio Turnover | 88% |
| Total Advisory Fees Paid | $850,071 |
Fund Holdings
Top Countries
(% of Net Assets) 1
(% of Net Assets) 1
Top Sectors
(% of Net Assets) 1
(% of Net Assets) 1
1 Reflects the pro rata portfolio composition of underlying affiliated investment companies (other than an affiliated money market mutual fund) in which the Fund invested greater than 10% of its net assets as of the date specified above. Accordingly, the percentages of net assets shown in the table will differ from those presented on the Portfolio of Investments.
Availability of Additional Information
Additional information is available on the Fund's website at FederatedHermes.com/us/FundInformation, including its:
• prospectus • financial information • holdings • proxy voting information
• prospectus • financial information • holdings • proxy voting information
CUSIP 31423A689
Q454745-C (7/26)
FederatedHermes.com/us
Federated Securities Corp., Distributor
© 2026 Federated Hermes, Inc.
Federated Hermes International Equity Fund
Federated Hermes International
Equity Fund
Equity Fund
Class R6 Shares / PEIRX
Annual Shareholder Report | May 31, 2026
A Portfolio of Federated Hermes Adviser Series
This annual shareholder report contains important information about the Federated Hermes International Equity Fund (the "Fund") for the period of June 1, 2025 to May 31, 2026. You can find additional information about the Fund at FederatedHermes.com/us/FundInformation. You can also request this information by contacting us at 1-800-341-7400, Option 4, or your financial advisor.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Class R6 Shares | $54 | 0.48% |
Management's Discussion of Fund Performance
The following discussion compares the performance of the Fund to the MSCI ACWI ex USA Index to show how the Fund's performance compares to the returns of similar investments for the reporting period. See the Average Annual Total Returns table below for the returns of the Fund and related indexes. The Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of equity securities.
Top Contributors to Performance
-
By country, stock selection in Taiwan, Canada and Spain aided performance.
-
By sector, stock selection in Financials, Energy and Healthcare aided performance.
-
Top individual outperforming Fund holdings included: TSMC, a Taiwanese semi manufacturer; SK Hynix, Inc., a Korean memory manufacturer; and Aspeed Technology, a Taiwanese chip design company.
Top Detractors from Performance
-
Country allocation and sector allocation detracted from Fund performance.
-
By country, stock selection in China, Japan and Germany detracted from performance.
-
By sector, stock selection in Consumer Discretionary, Industrials and Communication Services detracted from performance.
-
Top individual Fund holdings that detracted from performance included: Mercadolibre, Inc., a Latin American eCommerce and fintech company; SAP, a German software company; and QFIN Holdings, a Chinese fintech company.
Fund Performance
Keep in mind that the Fund's past performance is not a predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Cumulative Performance: May 31, 2016 through May 31, 2026
Initial Investment of $10,000
| Average Annual Total Returns | |||
| 1 Year | 5 Years | 10 Years | |
| Class R6 Shares1,2 | 25.94% | 5.45% | 9.59% |
| MSCI ACWI ex USA Index | 32.77% | 8.77% | 9.82% |
| Morningstar Foreign Large Blend Funds Category Average | 24.45% | 7.97% | 8.79% |
|
1
|
The Fund's Class R6 Shares commenced operations on June 11, 2018. For the period prior to the commencement of operations of the Class R6 Shares, the performance information shown is for the Institutional Shares.
|
|
2
|
The Fund is the successor to the PNC International Equity Fund (the "Predecessor Fund"), pursuant to a reorganization involving the Fund and the Predecessor Fund that occurred on November 15, 2019. For periods prior to the reorganization, the performance information is historical information for the Predecessor Fund.
|
Visit FederatedHermes.com/us/FundInformation and click on the link to your fund and share class for more recent performance information.
Key Fund Statistics
| Net Assets | $185,237,643 |
| Number of Investments | 76 |
| Portfolio Turnover | 88% |
| Total Advisory Fees Paid | $850,071 |
Fund Holdings
Top Countries
(% of Net Assets) 1
(% of Net Assets) 1
Top Sectors
(% of Net Assets) 1
(% of Net Assets) 1
1 Reflects the pro rata portfolio composition of underlying affiliated investment companies (other than an affiliated money market mutual fund) in which the Fund invested greater than 10% of its net assets as of the date specified above. Accordingly, the percentages of net assets shown in the table will differ from those presented on the Portfolio of Investments.
Availability of Additional Information
Additional information is available on the Fund's website at FederatedHermes.com/us/FundInformation, including its:
• prospectus • financial information • holdings • proxy voting information
• prospectus • financial information • holdings • proxy voting information
CUSIP 31423A671
Q454745-D (7/26)
FederatedHermes.com/us
Federated Securities Corp., Distributor
© 2026 Federated Hermes, Inc.
Federated Hermes International Equity Fund
Federated Hermes International
Growth Fund
Growth Fund
Institutional Shares / PIGDX
Annual Shareholder Report | May 31, 2026
A Portfolio of Federated Hermes Adviser Series
This annual shareholder report contains important information about the Federated Hermes International Growth Fund (the "Fund") for the period of June 1, 2025 to May 31, 2026. You can find additional information about the Fund at FederatedHermes.com/us/FundInformation. You can also request this information by contacting us at 1-800-341-7400, Option 4, or your financial advisor.
This report describes planned changes made to the Fund since the beginning of the reporting period.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Institutional Shares | $95 | 0.84% |
Management's Discussion of Fund Performance
The following discussion compares the performance of the Fund to the MSCI ACWI ex USA Growth Index to show how the Fund's performance compares to the returns of similar investments for the reporting period. See the Average Annual Total Returns table below for the returns of the Fund and related indexes, including the MSCI ACWI ex USA Index, a required broad-based index which represents the global equity market outside the U.S. in developed markets and emerging markets. The Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of equity securities.
Top Contributors to Performance
-
Country and sector allocation positively affected Fund relative performance.
-
By country, stock selection in Canada, South Africa, the Netherlands, and Taiwan aided performance.
-
By sector, stock selection in Healthcare, Energy and Materials aided performance.
-
Top individual outperformers included: TSMC, a Taiwanese semi manufacturer; Aspeed Technology, a Taiwanese chip design company; and Samsung Electro-Mechanics, a Korean MLCC and substrate manufacturer.
Top Detractors from Performance
-
By country, stock selection in China, Japan, Switzerland and Sweden detracted from performance.
-
By sector, stock selection in Consumer Discretionary, Industrials and Communication Services detracted from performance.
-
Top individual detractors included: Mercadolibre, Inc., a Latin American eCommerce and fintech company; SAP, a German software company; and QFIN Holdings, a Chinese fintech company.
Fund Performance
Keep in mind that the Fund's past performance is not a predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Cumulative Performance: May 31, 2016 through May 31, 2026
Initial Investment of $10,000
| Average Annual Total Returns | |||
| 1 Year | 5 Years | 10 Years | |
| Institutional Shares1 | 25.83% | 3.43% | 10.21% |
| MSCI ACWI ex USA Index | 32.77% | 8.77% | 9.82% |
| MSCI ACWI ex USA Growth Index | 27.50% | 5.35% | 9.20% |
| Morningstar Foreign Large Growth Funds Category Average | 14.59% | 3.34% | 8.11% |
|
1
|
Commenced operations on November 15, 2019. The Fund is the successor to the PNC International Growth Fund (the "Predecessor Fund") pursuant to a reorganization involving the Fund and the Predecessor Fund. For periods prior to the reorganization, the performance information is historical information for the Predecessor Fund which commenced operations on February 29, 2016.
|
Visit FederatedHermes.com/us/FundInformation and click on the link to your fund and share class for more recent performance information.
Key Fund Statistics
| Net Assets | $124,671,086 |
| Number of Investments | 76 |
| Portfolio Turnover | 30% |
| Total Advisory Fees Paid | $1,189,142 |
Fund Holdings
Top Countries
(% of Net Assets)
(% of Net Assets)
Top Sectors
(% of Net Assets)
(% of Net Assets)
Material Fund Changes
The following is a summary of material changes planned for the Fund since the beginning of the reporting period. For more complete and current information, you may review the Fund's disclosure documents on its webpage at FederatedHermes.com/us/FundInformation or upon request at 1-800-341-7400, Option 4, or by contacting your financial advisor. Effective July 29, 2026, the Fund's non-fundamental 80% investment policy will change to the following: Under normal circumstances, the Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in growth investments. Growth investments would be defined as securities that are either within the MSCI ACWI ex USA Growth Index or with earnings growth characteristics within the range of companies in the MSCI ACWI ex USA Growth Index.
Availability of Additional Information
Additional information is available on the Fund's website at FederatedHermes.com/us/FundInformation, including its:
• prospectus • financial information • holdings • proxy voting information
• prospectus • financial information • holdings • proxy voting information
CUSIP 31423A648
Q454746-A (7/26)
FederatedHermes.com/us
Federated Securities Corp., Distributor
© 2026 Federated Hermes, Inc.
Federated Hermes International Growth Fund
Federated Hermes International
Growth Fund
Growth Fund
Class R6 Shares / REIGX
Annual Shareholder Report | May 31, 2026
A Portfolio of Federated Hermes Adviser Series
This annual shareholder report contains important information about the Federated Hermes International Growth Fund (the "Fund") for the period of June 1, 2025 to May 31, 2026. You can find additional information about the Fund at FederatedHermes.com/us/FundInformation. You can also request this information by contacting us at 1-800-341-7400, Option 4, or your financial advisor.
This report describes planned changes made to the Fund since the beginning of the reporting period.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Class R6 Shares | $94 | 0.83% |
Management's Discussion of Fund Performance
The following discussion compares the performance of the Fund to the MSCI ACWI ex USA Growth Index to show how the Fund's performance compares to the returns of similar investments for the reporting period. See the Average Annual Total Returns table below for the returns of the Fund and related indexes, including the MSCI ACWI ex USA Index, a required broad-based index which represents the global equity market outside the U.S. in developed markets and emerging markets. The Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of equity securities.
Top Contributors to Performance
-
Country and sector allocation positively affected Fund relative performance.
-
By country, stock selection in Canada, South Africa, the Netherlands, and Taiwan aided performance.
-
By sector, stock selection in Healthcare, Energy and Materials aided performance.
-
Top individual outperformers included: TSMC, a Taiwanese semi manufacturer; Aspeed Technology, a Taiwanese chip design company; and Samsung Electro-Mechanics, a Korean MLCC and substrate manufacturer.
Top Detractors from Performance
-
By country, stock selection in China, Japan, Switzerland and Sweden detracted from performance.
-
By sector, stock selection in Consumer Discretionary, Industrials and Communication Services detracted from performance.
-
Top individual detractors included: Mercadolibre, Inc., a Latin American eCommerce and fintech company; SAP, a German software company; and QFIN Holdings, a Chinese fintech company.
Fund Performance
Keep in mind that the Fund's past performance is not a predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Cumulative Performance: May 31, 2016 through May 31, 2026
Initial Investment of $10,000
| Average Annual Total Returns | |||
| 1 Year | 5 Years | 10 Years | |
| Class R6 Shares1,2 | 25.53% | 3.48% | 10.24% |
| MSCI ACWI ex USA Index | 32.77% | 8.77% | 9.82% |
| MSCI ACWI ex USA Growth Index | 27.50% | 5.35% | 9.20% |
| Morningstar Foreign Large Growth Funds Category Average | 14.59% | 3.34% | 8.11% |
|
1
|
The Fund's Class R6 Shares commenced operations on August 26, 2021. For the periods prior to the commencement of operations of the Fund's Class R6 Shares, the performance information shown is for the Fund's Institutional Shares. The performance of the Institutional Shares has not been adjusted to reflect the expenses of the Class R6 Shares, since the Class R6 Shares have a lower expense ratio than the Institutional Shares.
|
|
2
|
The Fund is the successor to the PNC International Growth Fund (the "Predecessor Fund") pursuant to a reorganization involving the Fund and the Predecessor Fund that occurred on November 15, 2019, For periods prior to the reorganization, the performance information is historical information for the Predecessor Fund which commenced operations on February 29, 2016.
|
Visit FederatedHermes.com/us/FundInformation and click on the link to your fund and share class for more recent performance information.
Key Fund Statistics
| Net Assets | $124,671,086 |
| Number of Investments | 76 |
| Portfolio Turnover | 30% |
| Total Advisory Fees Paid | $1,189,142 |
Fund Holdings
Top Countries
(% of Net Assets)
(% of Net Assets)
Top Sectors
(% of Net Assets)
(% of Net Assets)
Material Fund Changes
The following is a summary of material changes planned for the Fund since the beginning of the reporting period. For more complete and current information, you may review the Fund's disclosure documents on its webpage at FederatedHermes.com/us/FundInformation or upon request at 1-800-341-7400, Option 4, or by contacting your financial advisor. Effective July 29, 2026, the Fund's non-fundamental 80% investment policy will change to the following: Under normal circumstances, the Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in growth investments. Growth investments would be defined as securities that are either within the MSCI ACWI ex USA Growth Index or with earnings growth characteristics within the range of companies in the MSCI ACWI ex USA Growth Index.
Availability of Additional Information
Additional information is available on the Fund's website at FederatedHermes.com/us/FundInformation, including its:
• prospectus • financial information • holdings • proxy voting information
• prospectus • financial information • holdings • proxy voting information
CUSIP 31423A630
Q454746-B (7/26)
FederatedHermes.com/us
Federated Securities Corp., Distributor
© 2026 Federated Hermes, Inc.
Federated Hermes International Growth Fund
| Item 2. | Code of Ethics |
(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics (the "Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers") that applies to the registrant's Principal Executive Officer and Principal Financial Officer; the registrant's Principal Financial Officer also serves as the Principal Accounting Officer.
(c) There was no amendment to the registrant's code of ethics described in Item 2(a) above during the period covered by the report.
(d) There was no waiver granted, either actual or implicit, from a provision to the registrant's code of ethics described in Item 2(a) above during the period covered by the report.
(e) Not Applicable
(f)(3) The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.
| Item 3. | Audit Committee Financial Expert |
The registrant's Board has determined that each of the following members of the Board's Audit Committee is an "audit committee financial expert," and is "independent," for purposes of this Item 3: John G. Carson, Thomas M. O'Neill and John S. Walsh.
| Item 4. | Principal Accountant Fees and Services |
(a) Audit Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2026 - $384,979
Fiscal year ended 2025 - $373,421
(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2026 - $0
Fiscal year ended 2025 - $0
Amount requiring approval of the registrant's Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(c) Tax Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2026 - $0
Fiscal year ended 2025 - $0
Amount requiring approval of the registrant's Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(d) All Other Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2026 - $0
Fiscal year ended 2025 - $0
Amount requiring approval of the registrant's Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(e)(1) Audit Committee Policies regarding Pre-approval of Services.
The Audit Committee is required to pre-approve audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor's independence. The Audit Committee is required to pre-concur with independence conclusions made by the independent auditor regarding non-audit services to be provided by the independent auditor to the Funds, the Funds Board of Directors, or any entity that is controlled directly or indirectly by the Funds. Unless a type of service to be provided by the independent auditor has received general pre-approval, it will require specific pre-approval (and pre-concurrence for non-audit services) by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.
Certain services have the general pre-approval of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate to management its responsibilities to pre-approve services performed by the independent auditor.
The Audit Committee has delegated pre-approval/pre-concurrence authority to its chairman (the "Chairman") for services that do not exceed a specified dollar threshold. The Chairman or Chief Audit Executive will report any such pre-approval/pre-concurrence decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with such pre-approval/pre-concurrence authority when the Chairman is unavailable.
AUDIT SERVICES
The annual audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee will approve, if necessary, any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.
In addition to the annual audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other audit services, which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain audit services; with limited exception, all other audit services must be specifically pre-approved by the Audit Committee.
AUDIT-RELATED SERVICES
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the RIC's financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of audit-related services does not impair the independence of the auditor, and has pre-approved certain audit-related services; all other audit-related services must be specifically pre-approved by the Audit Committee.
TAX SERVICES
The Audit Committee believes that the independent auditor can provide tax services to the RIC such as tax compliance, tax planning and tax advice without impairing the auditor's independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved/pre-concurred certain tax services; with limited exception, all tax services involving large and complex transactions must be specifically pre-approved/pre-concurred by the Audit Committee.
ALL OTHER SERVICES
With respect to the provision of permissible services other than audit, review or attest services the pre-approval/pre-concurrence requirement is waived if:
(1) With respect to such services rendered to the Funds, the aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues paid by the audit client to its accountant during the fiscal year in which the services are provided; and,
(2) With respect to such services rendered to the Fund's investment adviser ( the "Adviser")and any entity controlling, controlled by to under common control with the Adviser such as affiliated non-U.S. and U.S. funds not under the Audit Committee's purview and which do not fall within a category of service which has been determined by the Audit Committee not to have a direct impact on the operations or financial reporting of the RIC, the aggregate amount of all services provided constitutes no more than five percent of the total amount of revenues paid to the RIC's auditor by the RIC, its Adviser and any entity controlling, controlled by, or under common control with the Adviser during the fiscal year in which the services are provided; and
(3) Such services were not recognized by the issuer or RIC at the time of the engagement to be non-audit services; and
(4) Such services are promptly brought to the attention of the Audit Committee and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee who are members of the Board of Directors to whom authority to grant such approvals has been delegated by the Audit Committee.
The Audit Committee may grant general pre-approval/pre-concurrence to those permissible non-audit services which qualify for pre-approval and which it believes are routine and recurring services, and would not impair the independence of the auditor.
The Securities and Exchange Commission's (the "SEC") rules and relevant guidance should be consulted to determine the precise definitions of these services and applicability of exceptions to certain of the prohibitions.
PRE-APPROVAL FEE LEVELS
Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee.
PROCEDURES
Requests or applications to provide services that require specific approval/concurrence by the Audit Committee will be submitted to the Audit Committee by the Fund's Principal Accounting Officer and/or the Chief Audit Executive of Federated Hermes, Inc., only after those individuals have determined that the request or application is consistent with the SEC's rules on auditor independence.
(e)(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrant's Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
4(b)
Fiscal year ended 2026 - 0%
Fiscal year ended 2025 - 0%
Percentage of services provided to the registrant's Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant's Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(c)
Fiscal year ended 2026 - 0%
Fiscal year ended 2025 - 0%
Percentage of services provided to the registrant's Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant's Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(d)
Fiscal year ended 2026 - 0%
Fiscal year ended 2025 - 0%
Percentage of services provided to the registrant's Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant's Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
(f) NA
(g) Non-Audit Fees billed to the registrant, the registrant's Adviser, and certain entities controlling, controlled by or under common control with the Adviser:
Fiscal year ended 2026 - $901,261
Fiscal year ended 2025 - $179,786
(h) The registrant's Audit Committee has considered that the provision of non-audit services that were rendered to the registrant's Adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence.
(i) Not Applicable
(j) Not Applicable
| Item 5. | Audit Committee of Listed Registrants |
Not Applicable
| Item 6. | Schedule of Investments |
(a) The registrant's Schedule of Investments is included as part of the Financial Statements filed under Item 7 of this form.
(b) Not Applicable
| Item 7. | Financial Statements and Financial Highlights for Open-End Management Companies |
Annual Financial Statements
and Additional Information
and Additional Information
May 31, 2026
|
Share Class | Ticker
|
Institutional | PIEFX
|
R6 | FRIEX
|
|
|
Federated Hermes Emerging Markets Equity Fund
A Portfolio of Federated Hermes Adviser Series
Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee
CONTENTS
|
Portfolio of Investments
|
1
|
|
Financial Highlights
|
4
|
|
Statement of Assets and Liabilities
|
6
|
|
Statement of Operations
|
7
|
|
Statement of Changes in Net Assets
|
8
|
|
Notes to Financial Statements
|
9
|
|
Report of Independent Registered Public Accounting Firm
|
15
|
|
Evaluation and Approval of Advisory Contract
|
16
|
Portfolio of Investments
May 31, 2026
|
Shares
|
|
|
Value in
U.S. Dollars
|
|
|
|
COMMON STOCKS-95.0%
|
|
|
|
Argentina-2.5%
|
||
|
1,135
|
1
|
Mercadolibre, Inc.
|
$ 1,924,563
|
|
|
Brazil-3.2%
|
||
|
52,255
|
1
|
Itau Unibanco Holding SA, ADR
|
411,770
|
|
125,255
|
1
|
NU Holdings Ltd./Cayman Islands
|
1,644,598
|
|
19,728
|
|
Vale SA, ADR
|
320,580
|
|
|
TOTAL
|
2,376,948
|
|
|
|
Canada-0.8%
|
||
|
19,319
|
1
|
First Quantum Minerals Ltd.
|
594,711
|
|
|
Chile-0.4%
|
||
|
59,490
|
|
Embotelladora Andina S.A.
|
300,779
|
|
|
China-19.5%
|
||
|
165,419
|
|
Alibaba Group Holding Ltd.
|
2,568,887
|
|
23,900
|
1
|
Bilibili, Inc.
|
415,934
|
|
511,000
|
|
China Construction Bank Corp.
|
554,421
|
|
87,000
|
|
China Merchants Bank Co. Ltd.
|
523,366
|
|
22,060
|
|
Contemporary Amperex Technology Co. Ltd.
|
1,382,218
|
|
133,700
|
|
KE Holdings, Inc.
|
735,190
|
|
68,100
|
|
Kuaishou Technology
|
396,251
|
|
10,935
|
|
NAURA Technology Group Co. Ltd.
|
1,015,905
|
|
28,200
|
|
Ningbo Tuopu Group Co. Ltd.
|
260,053
|
|
62,000
|
|
Ping An Insurance (Group) Co. of China Ltd.
|
476,983
|
|
24,940
|
|
SBT Ultrasonic Technology Co. Ltd.
|
574,804
|
|
29,697
|
|
Shengyi Technology Co.,Ltd.
|
617,307
|
|
45,864
|
|
Tencent Holdings Ltd.
|
2,497,128
|
|
9,800
|
|
Victory Giant Technology Huizhou Co. Ltd.
|
533,825
|
|
502,022
|
|
Zijin Mining Group Co. Ltd.
|
2,109,778
|
|
|
TOTAL
|
14,662,050
|
|
|
|
Egypt-0.6%
|
||
|
181,092
|
|
Commercial International Bank Egypt
|
461,226
|
|
|
Georgia-0.5%
|
||
|
5,820
|
|
TBC Bank Group PLC
|
352,683
|
|
|
Hong Kong-0.5%
|
||
|
23,639
|
1
|
Zijin Gold International Company Ltd.
|
396,705
|
|
|
India-4.9%
|
||
|
25,237
|
|
DLF Ltd.
|
157,000
|
|
97,546
|
|
Max Healthcare Institute Ltd.
|
989,283
|
|
72,344
|
1
|
PB Fintech Ltd.
|
1,293,337
|
|
26,431
|
|
Reliance Industries Ltd.
|
366,582
|
|
94,025
|
|
Varun Beverages Ltd.
|
522,858
|
|
69,555
|
1
|
Zinka Logistics Solutions Ltd.
|
373,977
|
|
|
TOTAL
|
3,703,037
|
|
|
|
Kazakhstan-1.0%
|
||
|
10,496
|
2
|
NAC Kazatomprom JSC, GDR
|
758,286
|
|
|
Malaysia-1.1%
|
||
|
694,200
|
|
Frontken Corp. Bhd
|
857,064
|
|
|
Mexico-1.0%
|
||
|
9,839
|
1
|
Vista Oil & Gas, SAB de CV, ADR
|
730,054
|
Annual Financial Statements and Additional Information
1
|
Shares
|
|
|
Value in
U.S. Dollars
|
|
|
|
COMMON STOCKS-continued
|
|
|
|
Peru-0.7%
|
||
|
2,657
|
|
Southern Copper Corp.
|
$ 508,344
|
|
|
Poland-0.7%
|
||
|
17,965
|
|
Powszechna Kasa Oszczednosci Bank Polski SA
|
510,150
|
|
|
Singapore-0.7%
|
||
|
154,133
|
1
|
Grab Holdings Ltd.
|
545,631
|
|
|
South Africa-3.5%
|
||
|
6,437
|
|
Capitec Bank Holdings Ltd.
|
1,767,370
|
|
21,347
|
|
Gold Fields Ltd., ADR
|
850,892
|
|
|
TOTAL
|
2,618,262
|
|
|
|
South Korea-28.4%
|
||
|
3,869
|
|
APR Corp./Korea
|
1,014,650
|
|
1,130
|
|
Hanwha Aerospace Co. Ltd.
|
879,772
|
|
8,984
|
|
Korea Aerospace Industries Ltd.
|
1,003,953
|
|
289
|
1
|
Samsung Biologics Co. Ltd.
|
261,555
|
|
3,344
|
|
Samsung Electro-Mechanics Co. Ltd.
|
4,752,285
|
|
24,542
|
|
Samsung Electronics Co. Ltd.
|
5,170,794
|
|
5,279
|
|
SK Hynix, Inc.
|
8,236,310
|
|
|
TOTAL
|
21,319,319
|
|
|
|
Taiwan-22.3%
|
||
|
30,000
|
|
Ase Technology Holding Co. Ltd.
|
576,684
|
|
4,661
|
|
ASPEED Technology, Inc.
|
2,810,827
|
|
25,704
|
|
MediaTek, Inc.
|
3,493,122
|
|
131,385
|
|
Taiwan Semiconductor Manufacturing Co. Ltd
|
9,891,889
|
|
|
TOTAL
|
16,772,522
|
|
|
|
Thailand-0.7%
|
||
|
768
|
1
|
Fabrinet
|
502,395
|
|
|
Turkey-0.7%
|
||
|
60,099
|
|
Aselsan Elektronik Sanayi Ve Ticaret A.S.
|
497,961
|
|
|
United Arab Emirates-1.3%
|
||
|
588,436
|
|
ADNOC Drilling Co. PJSC
|
956,278
|
|
|
TOTAL COMMON STOCKS
(IDENTIFIED COST $29,524,925)
|
71,348,968
|
|
|
|
EXCHANGE-TRADED FUND-0.7%
|
||
|
|
China-0.7%
|
||
|
308,700
|
|
ChinaAMC Hang Seng Biotech ETF
(IDENTIFIED COST $600,605)
|
537,545
|
|
|
INVESTMENT COMPANY-4.6%
|
||
|
3,431,826
|
|
Federated Hermes Government Obligations Fund, Premier Shares, 3.54%3
(IDENTIFIED COST $3,431,826)
|
3,431,826
|
|
|
TOTAL INVESTMENT IN SECURITIES-100.3%
(IDENTIFIED COST $33,557,356)4
|
75,318,339
|
|
|
|
OTHER ASSETS AND LIABILITIES - NET-(0.3%)5
|
(216,621)
|
|
|
|
NET ASSETS-100%
|
$75,101,718
|
Annual Financial Statements and Additional Information
2
Transactions with affiliated investment companies, which are funds managed by the Adviser or an affiliate of the Adviser, during the period ended May 31, 2026, were as follows:
|
|
Federated Hermes
Government
Obligations Fund,
Premier Shares*
|
|
Value as of 5/31/2025
|
$2,045,226
|
|
Purchases at Cost
|
$21,219,386
|
|
Proceeds from Sales
|
$(19,832,786)
|
|
Change in Unrealized Appreciation/Depreciation
|
$-
|
|
Net Realized Gain/(Loss)
|
$-
|
|
Value as of 5/31/2026
|
$3,431,826
|
|
Shares Held as of 5/31/2026
|
3,431,826
|
|
Dividend Income
|
$79,738
|
|
*
|
All or a portion of the balance/activity for the fund relates to cash collateral received on security lending transactions.
|
|
1
|
Non-income-producing security.
|
|
2
|
Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or availing of an exemption from registration, under
the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At May 31, 2026, these restricted securities amounted to $758,286, which
represented 1.0% of net assets.
|
|
3
|
7-day net yield.
|
|
4
|
The cost of investments for federal tax purposes amounts to $33,594,951.
|
|
5
|
Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.
|
Note: The categories of investments are shown as a percentage of net assets at May 31, 2026.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1-quoted prices in active markets for identical securities.
Level 2-other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3-significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used, as of May 31, 2026, in valuing the Fund's assets carried at fair value:
|
Valuation Inputs
|
||||
|
|
Level 1-
Quoted
Prices
|
Level 2-
Other
Significant
Observable
Inputs
|
Level 3-
Significant
Unobservable
Inputs
|
Total
|
|
Equity Securities:
|
||||
|
Common Stocks
|
||||
|
International
|
$8,795,543
|
$62,553,425
|
$-
|
$71,348,968
|
|
Exchange-Traded Fund
|
-
|
537,545
|
-
|
537,545
|
|
Investment Company
|
3,431,826
|
-
|
-
|
3,431,826
|
|
TOTAL SECURITIES
|
$12,227,369
|
$63,090,970
|
$-
|
$75,318,339
|
|
The following acronym(s) are used throughout this portfolio:
|
|
|
|
ADR
|
-American Depositary Receipt
|
|
|
ETF
|
-Exchange-Traded Fund
|
|
|
GDR
|
-Global Depositary Receipt
|
|
|
JSC
|
-Joint Stock Company
|
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
3
Financial Highlights-Institutional Shares
(For a Share Outstanding Throughout Each Period)
|
|
Year Ended May 31,
|
||||
|
|
2026
|
2025
|
2024
|
2023
|
2022
|
|
Net Asset Value, Beginning of Period
|
$16.72
|
$14.72
|
$13.41
|
$15.25
|
$20.47
|
|
Income From Investment Operations:
|
|||||
|
Net investment income1
|
0.06
|
0.08
|
0.10
|
0.16
|
0.11
|
|
Net realized and unrealized gain (loss)
|
11.56
|
2.09
|
1.30
|
(1.87)
|
(5.33)
|
|
TOTAL FROM INVESTMENT OPERATIONS
|
11.62
|
2.17
|
1.40
|
(1.71)
|
(5.22)
|
|
Less Distributions:
|
|||||
|
Distributions from net investment income
|
(0.35)
|
(0.17)
|
(0.09)
|
(0.13)
|
-
|
|
Net Asset Value, End of Period
|
$27.99
|
$16.72
|
$14.72
|
$13.41
|
$15.25
|
|
Total Return2
|
70.29%
|
14.84%
|
10.47%
|
(11.20)%
|
(25.50)%
|
|
Ratios to Average Net Assets:
|
|||||
|
Net expenses3
|
0.98%
|
0.98%
|
0.98%
|
0.98%
|
0.98%
|
|
Net investment income
|
0.28%
|
0.48%
|
0.75%
|
1.14%
|
0.57%
|
|
Expense waiver/reimbursement4
|
0.77%
|
0.94%
|
0.81%
|
0.82%
|
0.81%
|
|
Supplemental Data:
|
|||||
|
Net assets, end of period (000 omitted)
|
$73,983
|
$41,301
|
$42,518
|
$60,844
|
$55,929
|
|
Portfolio turnover5
|
26%
|
23%
|
26%
|
22%
|
39%
|
|
1
|
Per share numbers have been calculated using the average shares method.
|
|
2
|
Based on net asset value.
|
|
3
|
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
|
|
4
|
This expense decrease is reflected in both the net expense and net investment income ratios shown above. Amount does not reflect expense waiver/
reimbursement recorded by investment companies in which the Fund may invest.
|
|
5
|
Securities that mature are considered sales for purposes of this calculation.
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
4
Financial Highlights-Class R6 Shares
(For a Share Outstanding Throughout Each Period)
|
|
Year Ended May 31,
|
Period
Ended
5/31/20221
|
|||
|
|
2026
|
2025
|
2024
|
2023
|
|
|
Net Asset Value, Beginning of Period
|
$16.73
|
$14.72
|
$13.41
|
$15.25
|
$20.80
|
|
Income From Investment Operations:
|
|||||
|
Net investment income2
|
0.07
|
0.09
|
0.11
|
0.16
|
0.11
|
|
Net realized and unrealized gain (loss)
|
11.56
|
2.10
|
1.29
|
(1.86)
|
(5.66)
|
|
TOTAL FROM INVESTMENT OPERATIONS
|
11.63
|
2.19
|
1.40
|
(1.70)
|
(5.55)
|
|
Less Distributions:
|
|||||
|
Distributions from net investment income
|
(0.35)
|
(0.18)
|
(0.09)
|
(0.14)
|
-
|
|
Net Asset Value, End of Period
|
$28.01
|
$16.73
|
$14.72
|
$13.41
|
$15.25
|
|
Total Return3
|
70.38%
|
14.97%
|
10.49%
|
(11.14)%
|
(26.68)%
|
|
Ratios to Average Net Assets:
|
|||||
|
Net expenses4
|
0.92%
|
0.92%
|
0.92%
|
0.92%
|
0.92%5
|
|
Net investment income
|
0.31%
|
0.55%
|
0.80%
|
1.20%
|
0.87%5
|
|
Expense waiver/reimbursement6
|
0.77%
|
0.92%
|
0.76%
|
0.76%
|
0.87%5
|
|
Supplemental Data:
|
|||||
|
Net assets, end of period (000 omitted)
|
$1,119
|
$629
|
$586
|
$527
|
$314
|
|
Portfolio turnover7
|
26%
|
23%
|
26%
|
22%
|
39%8
|
|
1
|
Reflects operations for the period from August 26, 2021 (commencement of operations) to May 31, 2022.
|
|
2
|
Per share numbers have been calculated using the average shares method.
|
|
3
|
Based on net asset value. Total returns for periods of less than one year are not annualized.
|
|
4
|
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
|
|
5
|
Computed on an annualized basis.
|
|
6
|
This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/
reimbursement recorded by investment companies in which the Fund may invest.
|
|
7
|
Securities that mature are considered sales for purposes of this calculation.
|
|
8
|
Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the fiscal period ended May 31, 2022.
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
5
Statement of Assets and Liabilities
May 31, 2026
|
Assets:
|
|
|
Investment in securities, at value including $3,431,826 of investment in an affiliated holding* (identified cost $33,557,356, including $3,431,826
of identified cost in an affiliated holding)
|
$75,318,339
|
|
Income receivable
|
51,153
|
|
Receivable for shares sold
|
49,497
|
|
Total Assets
|
75,418,989
|
|
Liabilities:
|
|
|
Payable for capital gains taxes
|
$198,554
|
|
Payable for portfolio accounting fees
|
35,387
|
|
Payable for auditing fees
|
31,689
|
|
Payable for shares redeemed
|
20,956
|
|
Payable for custodian fees
|
12,908
|
|
Payable for investment adviser fee (Note 5)
|
2,135
|
|
Payable for administrative fee (Note 5)
|
526
|
|
Accrued expenses (Note 5)
|
15,116
|
|
TOTAL LIABILITIES
|
317,271
|
|
Net assets for 2,682,780 shares outstanding
|
$75,101,718
|
|
Net Assets Consist of:
|
|
|
Paid-in capital
|
$48,382,442
|
|
Total distributable earnings (loss)
|
26,719,276
|
|
NET ASSETS
|
$75,101,718
|
|
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
|
|
|
Institutional Shares:
|
|
|
Net asset value per share ($73,982,858 ÷ 2,642,837 shares outstanding) no par value, unlimited shares authorized
|
$27.99
|
|
Class R6 Shares:
|
|
|
Net asset value per share ($1,118,860 ÷ 39,943 shares outstanding) no par value, unlimited shares authorized
|
$28.01
|
|
*
|
See information listed after the Fund's Portfolio of Investments.
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
6
Statement of Operations
Year Ended May 31, 2026
|
Investment Income:
|
|
|
Dividends (including $79,614 received from an affiliated holding* and net of foreign taxes withheld of $63,985)
|
$641,798
|
|
Net income on securities loaned (includes $124 earned from an affiliated holding* related to cash collateral balances) (Note 2)
|
124
|
|
TOTAL INCOME
|
641,922
|
|
Expenses:
|
|
|
Investment adviser fee (Note 5)
|
$461,059
|
|
Administrative fee (Note 5)
|
40,529
|
|
Custodian fees
|
49,205
|
|
Transfer agent fees (Note 2)
|
35,125
|
|
Directors'/Trustees' fees (Note 5)
|
1,035
|
|
Auditing fees
|
39,612
|
|
Legal fees
|
10,713
|
|
Portfolio accounting fees
|
140,044
|
|
Share registration costs
|
45,944
|
|
Printing and postage
|
40,810
|
|
Miscellaneous (Note 5)
|
29,534
|
|
TOTAL EXPENSES
|
893,610
|
|
Waiver and Reimbursements:
|
|
|
Waiver/reimbursement of investment adviser fee (Note 5)
|
(393,331)
|
|
Reimbursement of other operating expenses (Notes 2 and 5)
|
(340)
|
|
TOTAL WAIVER AND REIMBURSEMENTS
|
(393,671)
|
|
Net expenses
|
499,939
|
|
Net investment income
|
141,983
|
|
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions:
|
|
|
Net realized gain on investments and foreign currency transactions
|
2,450,096
|
|
Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency (including decrease in payable
for capital gains taxes of $45,590)
|
26,918,545
|
|
Net realized and unrealized gain (loss) on investments and foreign currency transactions
|
29,368,641
|
|
Change in net assets resulting from operations
|
$29,510,624
|
|
*
|
See information listed after the Fund's Portfolio of Investments.
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
7
Statement of Changes in Net Assets
|
Year Ended May 31
|
2026
|
2025
|
|
Increase (Decrease) in Net Assets
|
||
|
Operations:
|
||
|
Net investment income
|
$141,983
|
$198,874
|
|
Net realized gain
|
2,450,096
|
177,926
|
|
Net change in unrealized appreciation/depreciation
|
26,918,545
|
5,172,716
|
|
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
|
29,510,624
|
5,549,516
|
|
Distributions to Shareholders:
|
||
|
Institutional Shares
|
(775,666)
|
(436,648)
|
|
Class R6 Shares
|
(16,101)
|
(6,355)
|
|
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS
|
(791,767)
|
(443,003)
|
|
Share Transactions:
|
||
|
Proceeds from sale of shares
|
18,862,089
|
10,206,924
|
|
Net asset value of shares issued to shareholders in payment of distributions declared
|
495,775
|
284,015
|
|
Cost of shares redeemed
|
(14,905,209)
|
(16,771,375)
|
|
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS
|
4,452,655
|
(6,280,436)
|
|
Change in net assets
|
33,171,512
|
(1,173,923)
|
|
Net Assets:
|
||
|
Beginning of period
|
41,930,206
|
43,104,129
|
|
End of period
|
$75,101,718
|
$41,930,206
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
8
Notes to Financial Statements
May 31, 2026
1. ORGANIZATION
Federated Hermes Adviser Series (the "Trust") was established as a Delaware statutory trust on July 18, 2017 and is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of 10 portfolios. The financial statements included herein are only those of Federated Hermes Emerging Markets Equity Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers two classes of shares: Institutional Shares and Class R6 Shares. The Fund's Class A Shares and Class C Shares are effective with the Securities and Exchange Commission (SEC), but are not yet offered for sale. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide long-term capital appreciation.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
■
Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
■
Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.
■
Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and ask quotations.
■
Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by Federated Global Investment Management Corp. (the "Adviser").
■
For securities that are fair valued in accordance with procedures established by and under the general supervision of the Adviser, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer's financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.
If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Adviser's valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion of the Adviser's valuation committee ("Valuation Committee"), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.
Fair Valuation and Significant Events Procedures
Pursuant to Rule 2a-5 under the Act, the Fund's Board of Trustees (the "Trustees") has designated the Adviser as the Fund's valuation designee to perform any fair value determinations for securities and other assets held by the Fund. The Adviser is subject to the Trustees' oversight and certain reporting and other requirements intended to provide the Trustees the information needed to oversee the Adviser's fair value determinations.
The Adviser, acting through its Valuation Committee, is responsible for determining the fair value of investments for which market quotations are not readily available. The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser's affiliated companies and determines fair value and oversees the calculation of the NAV. The Valuation Committee is also authorized to use pricing services to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-partypricing services' policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Adviser. The Trustees periodically review the fair valuations made by the Valuation Committee. The Trustees have also approved the Adviser's fair valuation and significant events procedures as part of the Fund's compliance program and will review any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and ask for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-incomesecurities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Adviser.
Annual Financial Statements and Additional Information
9
The Adviser has also adopted procedures requiring an investment to be priced at its fair value whenever the Valuation Committee determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
■
With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;
■
Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;
■
Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.
The Adviser has adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Valuation Committee will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Adviser. The Trustees periodically review fair valuations made in response to significant events.
Repurchase Agreements
The Fund may invest in repurchase agreements for short-term liquidity purposes. It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. Certain repurchase agreements may be structured as loans secured by a security interest or lien on the eligible securities. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.
The insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.
The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's Adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.
Restricted Securities
The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities, like other securities, are priced in accordance with procedures established by and under the general supervision of the Adviser.
Additional information on restricted securities held at May 31, 2026, is as follows:
|
Security
|
Acquisition
Date
|
Cost
|
Value
|
|
NAC Kazatomprom JSC, GDR
|
1/14/2026
|
$783,058
|
$758,286
|
Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income and capital gains, if any, are declared and paid at least annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. The detail of the total fund expense waiver and reimbursements of $393,671 is disclosed in this Note 2and Note 5. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Annual Financial Statements and Additional Information
10
Transfer Agent Fees
For the year ended May 31, 2026, transfer agent fees for the Fund were as follows:
|
|
Transfer Agent
Fees Incurred
|
Transfer Agent
Fees Reimbursed
|
|
Institutional Shares
|
$34,977
|
$(335)
|
|
Class R6 Shares
|
148
|
(5)
|
|
TOTAL
|
$35,125
|
$(340)
|
Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund's Institutional Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees. For the year ended May 31, 2026, the Fund's Institutional Shares did not incur other service fees; however it may begin to incur this fee upon approval of the Trustees.
Federal Taxes
It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986 (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the year ended May 31, 2026, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of May 31, 2026, tax years 2023 through 2026 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the State of Delaware.
The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or gains are earned.
When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Foreign Currency Translation
The accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the rates of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at period end, resulting from changes in the exchange rate.
Securities Lending
The Fund participates in a securities lending program providing for the lending of equity securities to qualified brokers. The term of the loans within the program is one year or less. The Fund receives cash collateral for securities loaned, which generally is invested in an affiliated money market fund. Collateral is maintained at a minimum level of 100% of the market value of investments loaned, plus interest, if applicable. In accordance with the Fund's securities lending agreement, the market value of securities on loan is determined each day at the close of business and any additional collateral required to cover the value of securities on loan is delivered to the Fund on the next business day. Earnings from collateral invested in affiliated holdings as presented parenthetically on the Statement of Operations do not reflect fees and rebates and are allocated between the borrower of the security, the securities lending agent, as a fee for its services under the program and the Fund, according to agreed-upon rates. The Fund will not have the right to vote on securities while they are on loan. However, the Fund will attempt to terminate a loan in an effort to reacquire the securities in time to vote on matters that are deemed to be material by the Adviser. There can be no assurance that the Fund will have sufficient notice of such matters to be able to terminate the loan in time to vote thereon.
Securities lending transactions are subject to Master Netting Agreements which are agreements between the Fund and its counterparties that provide for the net settlement of all transactions and collateral with the Fund, through a single payment, in the event of default or termination. Amounts presented on the Portfolio of Investments and Statement of Assets and Liabilities are not net settlement amounts but gross. Additionally, the securities lending agreement executed by the Fund includes an indemnification clause. This clause stipulates that the borrower will reimburse the Fund for any losses as a result of any failure of the borrower to return equivalent securities to the Fund.
As of May 31, 2026, the Fund has no outstanding securities on loan.
Annual Financial Statements and Additional Information
11
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ materially from those estimated. The Fund applies investment company accounting and reporting guidance.
3. SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
|
|
Year Ended
5/31/2026
|
Year Ended
5/31/2025
|
||
|
Institutional Shares:
|
Shares
|
Amount
|
Shares
|
Amount
|
|
Shares sold
|
844,118
|
$18,646,351
|
621,022
|
$10,070,505
|
|
Shares issued to shareholders in payment of distributions declared
|
24,337
|
487,226
|
18,219
|
280,943
|
|
Shares redeemed
|
(695,143)
|
(14,725,737)
|
(1,059,110)
|
(16,596,807)
|
|
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS
|
173,312
|
$4,407,840
|
(419,869)
|
$(6,245,359)
|
|
|
Year Ended
5/31/2026
|
Year Ended
5/31/2025
|
||
|
Class R6 Shares:
|
Shares
|
Amount
|
Shares
|
Amount
|
|
Shares sold
|
10,291
|
$215,738
|
8,770
|
$136,419
|
|
Shares issued to shareholders in payment of distributions declared
|
427
|
8,549
|
199
|
3,072
|
|
Shares redeemed
|
(8,359)
|
(179,472)
|
(11,212)
|
(174,568)
|
|
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS
|
2,359
|
$44,815
|
(2,243)
|
$(35,077)
|
|
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS
|
175,671
|
$4,452,655
|
(422,112)
|
$(6,280,436)
|
4. FEDERAL TAX INFORMATION
The accounting treatment of certain items in accordance with income tax regulations may differ from the accounting treatment in accordance with GAAP which may result in permanent differences. In the case of the Fund, such differences primarily result from net operating loss and taxable overdistribution of dividends.
For the year ended May 31, 2026, permanent differences identified and reclassified among the components of net assets were as follows:
|
Increase (Decrease)
|
|
|
Paid-in Capital
|
Total Distributable
Earnings (Loss)
|
|
$227,078
|
$(227,078)
|
Net assets were not affected by this reclassification.
The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended May 31, 2026 and 2025, was as follows:
|
|
2026
|
2025
|
|
Ordinary income
|
$791,767
|
$443,003
|
As of May 31, 2026, the components of distributable earnings on a tax-basis were as follows:
|
Net unrealized appreciation
|
$41,723,388
|
|
Other temporary differences
|
$(198,642)
|
|
Capital loss carryforwards and deferrals
|
$(14,805,470)
|
|
TOTAL
|
$26,719,276
|
At May 31, 2026, the cost of investments for federal tax purposes was $33,594,951. The net unrealized appreciation of investments for federal tax purposes was $41,723,388. This consists of unrealized appreciation from investments for those securities having an excess of value over cost of $42,494,863 and unrealized depreciation from investments for those securities having an excess of cost over value of $771,475. The difference between book-basis and tax-basis net unrealized appreciation/depreciation is attributable to differing treatments for the deferral of losses on wash sales and investments in passive foreign investment companies.
As of May 31, 2026, the Fund had a capital loss carryforward of $14,530,552 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code of 1986, thereby reducing the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, these net capital losses retain their character as either short-term or long-term and do not expire.
Annual Financial Statements and Additional Information
12
The following schedule summarizes the Fund's capital loss carryforwards:
|
Short-Term
|
Long-Term
|
Total
|
|
$8,421,607
|
$6,108,945
|
$14,530,552
|
Capital loss carryforwards of $2,135,021 were utilized during the year ended May 31, 2026.
Under current tax rules, capital losses on securities transactions realized after October 31 may be deferred, in whole or in part, and treated as occurring on the first day of the following fiscal year. As of May 31, 2026, for federal income tax purposes, a post-October loss of $274,918 was deferred to June 1, 2026.
5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.90% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund for competitive reasons such as to maintain the Fund's expense ratio, or as and when appropriate, to maintain positive or zero net yields. For the year ended May 31, 2026, the Adviser voluntarily waived $392,901 of its fee and voluntarily reimbursed $340 of transfer agent fees.
The Adviser has agreed to reimburse the Fund for certain investment adviser fees as a result of transactions in other affiliated investment companies. For the year ended May 31, 2026, the Adviser reimbursed $430.
Administrative Fee
Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, "Investment Complex" is defined as all of the Federated Hermes Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:
|
Administrative Fee
|
Average Daily Net Assets
of the Investment Complex
|
|
0.100%
|
on assets up to $50 billion
|
|
0.075%
|
on assets over $50 billion
|
Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the year ended May 31, 2026, the annualized fee paid to FAS was 0.079% of average daily net assets of the Fund.
In addition, FAS may charge certain out-of-pocket expenses to the Fund.
Expense Limitation
The Adviser and certain of its affiliates (which may include FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Effective August 1, 2026, total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, tax reclaim recovery expenses, proxy-related expenses and extraordinary expenses, if any) paid by the Fund's Institutional Shares and Class R6 Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.99% and 0.93% (the "Fee Limit"), respectively, up to but not including the later of (the "Termination Date"): (a) August 1, 2027; or (b) the date of the Fund's next effective Prospectus. Prior to August 1, 2026, the Fee Limit for the Institutional Shares and Class R6 Shares was 0.98% and 0.92%, respectively. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the approval of the Trustees.
Directors'/Trustees' and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Independent Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
6. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended May 31, 2026, were as follows:
|
Purchases
|
$15,220,998
|
|
Sales
|
$12,925,496
|
Annual Financial Statements and Additional Information
13
7. CONCENTRATION OF RISK
The Fund invests in securities of non-U.S. issuers. A substantial portion of the Fund's portfolio may be comprised of securities that are incorporated in South Korea. Political or economic developments may have an effect on the liquidity and volatility of portfolio securities and currency holdings. A substantial portion of the Fund's portfolio may be comprised of entities in the Information Technology sector. As a result, the Fund may be more susceptible to any economic, business, political or other developments which generally affect these entities.
8. LINE OF CREDIT
The Fund participates with certain other Federated Hermes Funds, on a several basis, in an up to $500,000,000 unsecured, 364-day, committed, revolving line of credit (LOC) agreement dated June 17, 2025, which was renewed on June 16, 2026 for an amount up to $400,000,000. The LOC was made available to temporarily finance the repurchase or redemption of shares of the Fund, failed trades, payment of dividends, settlement of trades and for other short-term, temporary or emergency general business purposes. The Fund cannot borrow under the LOC if an inter-fund loan is outstanding. The Fund's ability to borrow under the LOC also is subject to the limitations of the Act and various conditions precedent that must be satisfied before the Fund can borrow. Loans under the LOC are charged interest at a fluctuating rate per annum equal to (a) the highest, on any day, of (i) the federal funds effective rate, (ii) the published secured overnight financing rate plus an assigned percentage, and (iii) 0.0%, plus (b) a margin. Any fund eligible to borrow under the LOC pays its pro rata share of a commitment fee based on the amount of the lenders' commitment that has not been utilized, quarterly in arrears and at maturity. As of May 31, 2026, the Fund had no outstanding loans. During the year ended May 31, 2026, the Fund did not utilize the LOC.
9. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other funds advised by subsidiaries of Federated Hermes, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of May 31, 2026, there were no outstanding loans. During the year ended May 31, 2026, the program was not utilized.
10. OPERATING SEGMENTS
An operating segment is defined as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity's chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. A management committee of the Adviser acts as the CODM. The Fund represents a single operating segment, as the CODM monitors the operating results of the Fund as a whole and the strategic asset allocation is determined based on the investment objective of the Fund and executed by the Fund's portfolio management team. The financial information in the form of the Fund's portfolio composition, total returns, expense ratios and changes in net assets (i.e., changes in net assets resulting from operations, subscriptions and redemptions) which is reviewed by the CODM to assess the Fund's performance in comparison to the Fund's benchmarks and to make resource allocation decisions for the Fund's single segment is consistent with the information presented in these financial statements. Segment assets are reflected on the accompanying Statement of Assets and Liabilities as "total assets" and significant segment expenses are listed on the accompanying Statement of Operations.
11. INDEMNIFICATIONS
Under the Fund's organizational documents, its Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund (other than liabilities arising out of their willful misfeasance, bad faith, gross negligence or reckless disregard of their duties to the Fund). In addition, in the normal course of business, the Fund provides certain indemnifications under arrangements with third parties. Typically, obligations to indemnify a third party arise in the context of an arrangement entered into by the Fund under which the Fund agrees to indemnify such third party for certain liabilities arising out of actions taken pursuant to the arrangement, provided the third party's actions are not deemed to have breached an agreed-upon standard of care (such as willful misfeasance, bad faith, gross negligence or reckless disregard of their duties under the contract). The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet arisen. The Fund does not anticipate any material claims or losses pursuant to these arrangements at this time, and accordingly expects the risk of loss to be remote.
12. FEDERAL TAX INFORMATION (UNAUDITED)
For the year ended May 31, 2026, 26.0% of total ordinary income distributions paid by the Fund are qualifying dividends which may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Act of 2003. For the year ended May 31, 2026, 3.3% of total ordinary income distributions qualified as business interest income for purposes of 163(j) of the Code and the regulations thereunder. Complete information is reported in conjunction with the reporting of distributions on Form 1099-DIV.
Annual Financial Statements and Additional Information
14
Report of Independent Registered Public Accounting Firm
To the SHAREHOLDERS of Federated Hermes EMERGING MARKETS EQUITY FUND and the BOARD of TRUSTEES OF THE FEDERATED HERMES ADVISER SERIES:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Federated Hermes Emerging Markets Equity Fund (the Fund), a portfolio of Federated Hermes Adviser Series, including the portfolio of investments, as of May 31, 2026, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of May 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of May 31, 2026, by correspondence with the custodian, transfer agent of the underlying fund, and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor for one or more Federated Hermes' investment companies since 2006.
Boston, Massachusetts
July 24, 2026
July 24, 2026
Annual Financial Statements and Additional Information
15
Evaluation and Approval of Advisory Contract-May 2026
Federated Hermes Emerging Markets Equity Fund (the "Fund")
At its meetings in May 2026 (the "May Meetings"), the Fund's Board of Trustees (the "Board"), including those Trustees who are not "interested persons" of the Fund, as defined in the Investment Company Act of 1940, as amended (the "Independent Trustees"), reviewed and unanimously approved the continuation of the investment advisory contract between the Fund and Federated Global Investment Management Corp. (the "Adviser") (the "Contract") for an additional one-year term. The Board's determination to approve the continuation of the Contract reflects the exercise of its business judgment after considering such information deemed necessary to evaluate the terms of the Contract and to approve the continuation of the existing arrangement. The information, factors and conclusions that formed the basis for the Board's approval are summarized below.
Information Received and Review Process
At the request of the Independent Trustees, the Fund's Chief Compliance Officer (the "CCO") furnished to the Board in advance of its May Meetings an independent written report regarding data related to the Fund's management fee (the "CCO Management Fee Report"). The Board considered the CCO Management Fee Report, along with other information, in evaluating the reasonableness of the Fund's management fee and in determining to approve the continuation of the Contract.
In addition to the CCO Management Fee Report, the Board considered information specifically prepared in connection with the approval of the continuation of the Contract that was presented at the May Meetings. In this regard, in the months preceding the May Meetings, the Board requested and reviewed written responses and supporting materials prepared by the Adviser and its affiliates (collectively, "Federated Hermes") in response to requests posed to Federated Hermes by independent legal counsel on behalf of the Independent Trustees encompassing a wide variety of topics, including those summarized below. The Board also considered such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the Contract, which included detailed information about the Fund and Federated Hermes furnished to the Board at its meetings throughout the year.
The Board's consideration of the Contract included review of materials and information covering the following matters, among others: (1) a copy of the Contract; (2) the nature, quality and extent of the advisory and other services provided to the Fund by Federated Hermes; (3) Federated Hermes' business and operations; (4) the Adviser's investment philosophy, personnel and processes; (5) the Fund's investment objective and strategies; (6) the Fund's short-term and long-term performance - in absolute terms (both on a gross basis and net of expenses) and relative to an appropriate group of peer funds and its benchmark; (7) the Fund's fees and expenses, including the advisory fee and the overall expense structure of the Fund - in absolute terms and relative to an appropriate group of peer funds, with due regard for contractual or voluntary expense limitations (if any); (8) the financial condition of Federated Hermes; (9) the Adviser's profitability with respect to managing the Fund; (10) distribution and sales activity for the Fund; and (11) the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any).
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees charged to other registered funds in evaluating the Contract. Using these judicial decisions as a guide, the Board considered several factors it deemed relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund, including: (1) the nature and quality of the services provided by the adviser to the fund and its shareholders, including the performance of the fund, its benchmark and comparable funds; (2) the adviser's cost of providing the services and the profitability to the adviser of providing advisory services to the fund; (3) the extent to which the adviser may realize "economies of scale" as the fund grows larger and, if such economies of scale exist, whether they have been appropriately shared with the fund and its shareholders or the family of funds; (4) any "fall-out" benefits that accrue to the adviser because of its relationship with the fund, including research services received from brokers that execute fund trades and any fees paid to affiliates of the adviser for services rendered to the fund; (5) comparative fees and expenses, including a comparison of management fees paid to the adviser with those paid by similar funds managed by the same adviser or other advisers as well as management fees charged to institutional and other advisory clients of the same adviser for what might be viewed as like services; and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise, including whether they are fully informed about all facts the board deems relevant to its consideration of the adviser's services and fees. The Board considered that the Securities and Exchange Commission ("SEC") disclosure requirements regarding the basis for a fund board's approval of the fund's investment advisory contract generally align with the factors listed above. The Board was guided by these factors in its evaluation of the Contract to the extent it considered them to be appropriate and relevant, as discussed further below. The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated Hermes on matters relating to the oversight of the other funds advised by Federated Hermes (each, a "Federated Hermes Fund" and, collectively, the "Federated Hermes Funds").
Annual Financial Statements and Additional Information
16
In addition, the Board considered the preferences and expectations of Fund shareholders and the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew the Contract. In particular, the Board recognized that many shareholders likely have invested in the Fund based on the strength of Federated Hermes' industry standing and reputation and with the expectation that Federated Hermes will have a continuing role in providing advisory services to the Fund. Thus, the Board observed that there are a range of investment options available to the Fund's shareholders in the marketplace, and such shareholders, having had the opportunity to consider other investment options, have effectively selected Federated Hermes by virtue of investing in the Fund.
In determining to approve the continuation of the Contract, the members of the Board reviewed and evaluated information and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment. While individual members of the Board may have weighed certain factors differently, the Board's determination to approve the continuation of the Contract was based on a comprehensive consideration of all information provided to the Board throughout the year. The Board recognized that its evaluation process is evolutionary and that the factors considered and the emphasis placed on relevant factors may change in recognition of changing circumstances in the registered fund marketplace. The Independent Trustees were assisted throughout the evaluation process by independent legal counsel. In connection with their deliberations at the May Meetings, the Independent Trustees met separately in executive session with their independent legal counsel and without management present to review the relevant materials and consider their responsibilities under applicable laws. In addition, senior management representatives of Federated Hermes also met with the Independent Trustees and their independent legal counsel to discuss the materials and presentations furnished to the Board at the May Meetings. The Board considered the approval of the Contract for the Fund as part of its consideration of agreements for funds across the family of Federated Hermes Funds, but its approvals were made on a fund-by-fund basis.
Nature, Extent and Quality of Services
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of Federated Hermes dedicated to the Fund. In this regard, the Board evaluated, among other things, the terms of the Contract and the full range of services provided to the Fund by Federated Hermes. The Board considered the Adviser's personnel, investment philosophy and process, investment research capabilities and resources, trade operations capabilities, experience and performance track record. The Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and evaluated Federated Hermes' ability and experience in attracting and retaining qualified personnel to service the Fund. The Board considered the trading operations by the Adviser, including the execution of portfolio transactions and the selection of brokers for those transactions. The Board also considered the Adviser's ability to deliver competitive investment performance for the Fund when compared to the Fund's Performance Peer Group (as defined below).
In addition, the Board considered the financial resources and overall reputation of Federated Hermes and its willingness to consider and make investments in personnel, infrastructure, technology, cybersecurity, business continuity planning and operational enhancements that are designed to benefit the Federated Hermes Funds. The Board considered Federated Hermes' oversight of the securities lending program for the Federated Hermes Funds that engage in securities lending and noted the income earned by the Federated Hermes Funds that participate in such program. In addition, the Board considered the quality of Federated Hermes' communications with the Board and responsiveness to Board inquiries and requests made from time to time with respect to the Federated Hermes Funds. The Board also considered that Federated Hermes is responsible for providing the Federated Hermes Funds' officers.
The Board received and evaluated information regarding Federated Hermes' regulatory and compliance environment. The Board considered Federated Hermes' compliance program and compliance history and reports from the CCO about Federated Hermes' compliance with applicable laws and regulations, including responses to regulatory developments and any compliance or other issues raised by regulatory agencies. The Board also noted Federated Hermes' support of the Federated Hermes Funds' compliance control structure and the compliance-related resources devoted by Federated Hermes in support of the Fund's obligations pursuant to Rule 38a-1 under the Investment Company Act of 1940, as amended, including Federated Hermes' commitment to respond to rulemaking and other regulatory initiatives of the SEC. The Board considered Federated Hermes' approach to internal audits and risk management with respect to the Federated Hermes Funds and its day-to-day oversight of the Federated Hermes Funds' compliance with their investment objectives and policies as well as with applicable laws and regulations, noting that regulatory and other developments had over time led, and continue to lead, to an increase in the scope of Federated Hermes' oversight in this regard. In addition, the Board noted Federated Hermes' commitment to maintaining high quality systems and expending substantial resources to prepare for and respond to ongoing changes due to the market, regulatory and control environments in which the Fund and its service providers operate.
Annual Financial Statements and Additional Information
17
The Board considered Federated Hermes' efforts to provide shareholders in the Federated Hermes Funds with a comprehensive array of funds with different investment objectives, policies and strategies. The Board considered the expenses that Federated Hermes had incurred, as well as the entrepreneurial and other risks assumed by Federated Hermes, in sponsoring and providing on-going services to new funds to expand these opportunities for shareholders. The Board noted the benefits to shareholders of being part of the family of Federated Hermes Funds, which include the general right to exchange investments between the same class of shares without the incurrence of additional sales charges.
Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided by the Adviser to the Fund.
Fund Investment Performance
The Board considered the investment performance of the Fund. In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks. The Board considered detailed investment reports on, and the Adviser's analysis of, the Fund's performance over different time periods that were provided to the Board throughout the year and in connection with the May Meetings. These reports included, among other items, information on the Fund's gross and net returns, the Fund's investment performance compared to one or more relevant categories or groups of peer funds and the Fund's benchmark, performance attribution information and commentary on the effect of market conditions. The Board noted that it evaluated investment performance at meetings throughout the year and received reports from Federated Hermes regarding the performance of certain Federated Hermes Funds as well as Federated Hermes' explanations for less favorable performance and any specific actions Federated Hermes had taken, or had determined to take, to seek to enhance Fund investment performance and the results of those actions.
The Board also reviewed comparative information regarding the performance of other registered funds in the category of peer funds selected by Morningstar, Inc. ("Morningstar"), an independent fund ranking organization (the "Performance Peer Group"). The Board noted the CCO's statement that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund.
The Board also considered comparative performance data from Lipper, Inc. that was included in reports provided to the Board throughout the year.
For the periods ended December 31, 2025, the Fund's performance fell below the Performance Peer Group median for the five-year period, and was above the Performance Peer Group median for the one-year and three-year periods. The Board discussed the Fund's performance with the Adviser and recognized the efforts being taken by the Adviser in the context of other factors considered relevant by the Board.
Based on these considerations, the Board concluded that it had continued confidence in the Adviser's overall capabilities to manage the Fund.
Fund Expenses
The Board considered the advisory fee and overall expense structure of the Fund and the comparative fee and expense information that had been provided in connection with the May Meetings. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund's total expense ratio (i.e., gross and net advisory fees, administrative fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated Hermes from the overall category of peer funds selected by Morningstar (the "Expense Peer Group"). The Board received a description of the methodology used to select the Expense Peer Group from the overall Morningstar category. The Board also reviewed comparative information regarding the fees and expenses of the broader group of funds in the overall Morningstar category.
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged to funds by other advisers, the use of comparisons between the Fund and its Expense Peer Group assisted the Board in its evaluation of the Fund's fees and expenses. The Board focused on comparisons with other registered funds more heavily than non-registered fund products or services because such comparisons are believed to be more relevant. The Board considered that other registered funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle, in fact, chosen and maintained by the Fund's shareholders. The Board noted that the range of such other registered funds' fees and expenses, therefore, appears to be a relevant indicator of what investors have found to be reasonable in the marketplace in which the Fund competes.
The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund's fee rates relative to its Expense Peer Group. In this regard, the Board noted that the contractual advisory fee rate was below the median of the Expense Peer Group, and the Board was satisfied that the overall expense structure of the Fund remained competitive.
Annual Financial Statements and Additional Information
18
The Board also received and considered information about the nature and extent of services offered and fees charged by Federated Hermes to other types of clients with investment strategies similar to those of the Federated Hermes Funds, including non-registered fund clients (such as institutional separate accounts) and third-party unaffiliated registered funds for which the Adviser or its affiliates serve as sub-adviser. The Board noted the CCO's statement that non-registered fund clients are inherently different products due to the following differences, among others: (i) types of targeted investors; (ii) applicable laws and regulations; (iii) legal structures; (iv) average account sizes; (v) portfolio management techniques made necessary by different cash flows and different associated costs; (vi) the time spent by portfolio managers and their teams (among other personnel across various departments, including legal, compliance and risk management) in reviewing securities pricing; (vii) SEC mandated risk management programs with respect to fund liquidity and use of derivatives; (viii) questions on regulatory reporting; (ix) a variety of different administrative responsibilities; and (x) degrees of risk associated with management. The Board also considered information regarding the differences in the nature of the services required for Federated Hermes to manage its proprietary registered fund business versus managing a discrete pool of assets as a sub-adviser to another institution's registered fund, noting the CCO's statement that Federated Hermes generally performs significant additional services and assumes substantially greater risks in managing the Fund and other Federated Hermes Funds than in its role as sub-adviser to an unaffiliated third-party registered fund. The Board noted that the CCO emphasized that differences in fees for providing advisory services to other types of clients may not be appropriate when judging the appropriateness of the Federated Hermes Funds' advisory fees because of the different services provided.
In the case of the Fund, the Board noted that Federated Hermes does not manage any other types of clients that are comparable to the Fund.
Based on these considerations, the Board concluded that the fees and total operating expenses of the Fund, in conjunction with other matters considered, are reasonable in light of the services provided.
Profitability
The Board received and considered profitability information furnished by Federated Hermes. Such profitability information included revenues reported on a fund-by-fund basis and estimates of the allocation of expenses made on a fund-by-fund basis, using allocation methodologies specified by the CCO and described to the Board. The Board considered the CCO's statement that, while the cost allocation report applies consistent allocation processes for purposes of general comparison of funds, the inherent difficulties in arbitrarily allocating costs lack precision and may cause the report to be unreliable because a single change in an allocation estimate can dramatically alter the resulting estimate of cost and/or profitability of a Federated Hermes Fund and may produce unintended consequences. In addition, the Board considered the CCO's statement that the allocation methodologies used by Federated Hermes in estimating profitability for purposes of reporting to the Board in connection with the continuation of the Contract are consistent with the methodologies previously reviewed by an independent consultant. The Board noted that the independent consultant had previously conducted a review of the allocation methodologies and reported to the Board that, although there is no single best method to allocate expenses, the methodologies used by Federated Hermes are reasonable. The Board considered the CCO's statement that the estimated profitability to the Adviser from its relationship with the Fund was not unreasonable in relation to the services provided.
The Board also reviewed information compiled by Federated Hermes comparing its profitability information to other publicly-held fund management companies, including information regarding profitability trends over time. The Board recognized that profitability comparisons among fund management companies are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund management company is affected by numerous factors. The Board considered the CCO's statement that, based on such profitability information, Federated Hermes' profit margins did not appear to be excessive and that Federated Hermes appeared financially sound, with the resources available to fulfill its contractual obligations.
Economies of Scale
The Board received and considered information about the notion of possible realization of "economies of scale" as a fund grows larger, the difficulties of isolating and quantifying economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. In this regard, the Board considered that Federated Hermes has made significant and long-term investments in areas that support all of the Federated Hermes Funds, such as: portfolio management, investment research and trading operations; shareholder services; compliance; business continuity, cybersecurity and information security programs; internal audit and risk management functions; and technology, systems capabilities and use of data. The Board noted that Federated Hermes' investments in these areas are extensive and are designed to provide enhanced or expanded services to the Federated Hermes Funds and their shareholders. The Board considered that the benefits of these investments are likely to be shared with the family of Federated Hermes Funds as a whole. In addition, the Board considered that fee waivers and expense reimbursements are another means for potential economies of scale to be shared with shareholders and can provide protection from an increase in expenses if a Federated Hermes Fund's assets decline. The Board considered that, in order for the Federated Hermes Funds to remain competitive
Annual Financial Statements and Additional Information
19
in the marketplace, Federated Hermes has frequently waived fees and/or reimbursed expenses for the Federated Hermes Funds and has disclosed to shareholders and/or reported to the Board its intention to do so (or continue to do so) in the future. The Board also considered that Federated Hermes has been active in managing expenses of the Federated Hermes Funds in recent years, which has resulted in benefits being realized by shareholders.
The Board also received and considered information on adviser-paid fees (commonly referred to as "revenue sharing" payments) that was provided to the Board throughout the year and in connection with the May Meetings. The Board considered that Federated Hermes believes that this information is relevant to consider whether Federated Hermes had an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, but should not be considered when evaluating the reasonableness of advisory fees. The Board also noted the absence of any applicable regulatory or industry guidelines on economies of scale, which is compounded by the lack of any uniform methodology or pattern with respect to structuring fund advisory fees with breakpoints that serve to reduce the fees as a fund attains a certain size.
Other Benefits
The Board considered information regarding the compensation and other ancillary (or "fall-out") benefits that Federated Hermes derived from its relationships with the Federated Hermes Funds. The Board considered that Federated Hermes may derive a benefit to its reputation as an adviser to the Fund, which may help in attracting other clients and investment personnel. The Board noted that, in addition to receiving advisory fees under the Federated Hermes Funds' investment advisory contracts, Federated Hermes' affiliates also receive fees for providing other services to the Federated Hermes Funds under separate service contracts, including for serving as the Federated Hermes Funds' administrator and distributor. In this regard, the Board considered that Federated Hermes' affiliates provide distribution and shareholder services to the Federated Hermes Funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The Board also received and considered information detailing the benefits, if any, that Federated Hermes may derive from its receipt of research services from brokers who execute portfolio trades for the Federated Hermes Funds.
Conclusions
The Board considered the CCO's presentation and statements and the information accompanying the CCO Management Fee Report. The Board recognized that its evaluation of the Federated Hermes Funds' advisory and sub-advisory arrangements is a continuing and ongoing process that is informed by the information that the Board requests and receives from management throughout the course of the year.
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Board, and the evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the continuation of the Contract. The Board based its determination to approve the Contract on the totality of the circumstances and relevant factors and with a view of past and future long-term considerations. Not all of the factors and considerations identified above were necessarily deemed to be relevant to the Fund, nor did the Board consider any one of them to be determinative.
Annual Financial Statements and Additional Information
20
Mutual funds are not bank deposits or obligations, are not guaranteed by any bank and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.
This information is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.
Federated Hermes Emerging Markets Equity Fund
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedHermes.com/us
or call 1-800-341-7400.
or call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 31423A598
CUSIP 31423A580
CUSIP 31423A580
Q454742 (7/26)
©2026 Federated Hermes, Inc.
Annual Financial Statements
and Additional Information
and Additional Information
May 31, 2026
|
Share Class | Ticker
|
A | PMIEX
|
C | PIUCX
|
Institutional | PIUIX
|
R6 | PEIRX
|
Federated Hermes International Equity Fund
A Portfolio of Federated Hermes Adviser Series
Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee
CONTENTS
|
Portfolio of Investments
|
1
|
|
Financial Highlights
|
5
|
|
Statement of Assets and Liabilities
|
9
|
|
Statement of Operations
|
10
|
|
Statement of Changes in Net Assets
|
11
|
|
Notes to Financial Statements
|
12
|
|
Report of Independent Registered Public Accounting Firm
|
19
|
|
Evaluation and Approval of Advisory Contract
|
20
|
Portfolio of Investments
May 31, 2026
|
Shares
|
|
|
Value in
U.S. Dollars
|
|
|
|
COMMON STOCKS-51.2%
|
|
|
|
Austria-0.6%
|
||
|
8,790
|
|
Erste Group Bank AG
|
$ 1,055,087
|
|
|
Belgium-0.4%
|
||
|
10,274
|
|
Anheuser-Busch InBev SA/NV
|
822,708
|
|
|
Canada-0.3%
|
||
|
8,918
|
|
Nutrien Ltd.
|
610,705
|
|
|
Denmark-0.7%
|
||
|
4,813
|
|
DSV A/S
|
1,198,836
|
|
|
Finland-0.6%
|
||
|
72,725
|
|
Nokia Oyj
|
1,071,990
|
|
|
France-8.8%
|
||
|
6,367
|
|
Air Liquide SA
|
1,322,467
|
|
34,203
|
|
AXA SA
|
1,580,154
|
|
15,130
|
|
BNP Paribas SA
|
1,631,779
|
|
18,392
|
|
Bouygues SA
|
1,081,986
|
|
23,745
|
|
Compagnie de St. Gobain SA
|
2,186,302
|
|
18,707
|
|
Compagnie Generale des Etablissements Michelin SCA, Class B
|
683,865
|
|
38,733
|
|
Engie SA
|
1,195,353
|
|
4,304
|
|
Legrand SA
|
733,154
|
|
2,206
|
|
LVMH Moet Hennessy Louis Vuitton SE
|
1,222,471
|
|
103,226
|
|
Orange SA
|
2,160,600
|
|
10,784
|
|
Societe Generale SA
|
894,946
|
|
18,039
|
|
TotalEnergies SE
|
1,585,951
|
|
|
TOTAL
|
16,279,028
|
|
|
|
Germany-4.4%
|
||
|
3,227
|
|
Allianz SE
|
1,435,612
|
|
21,242
|
|
Deutsche Bank AG
|
690,332
|
|
77,631
|
|
Deutsche Telekom AG
|
2,612,174
|
|
2,007
|
|
Hannover Rueckversicherung SE
|
543,617
|
|
5,886
|
|
Heidelberg Materials AG
|
1,310,023
|
|
5,165
|
|
Siemens AG
|
1,625,519
|
|
|
TOTAL
|
8,217,277
|
|
|
|
Greece-0.3%
|
||
|
48,415
|
1
|
Piraeus Bank SA
|
514,650
|
|
|
Hong Kong-0.3%
|
||
|
41,745
|
|
Prudential PLC
|
601,992
|
|
|
Ireland-1.4%
|
||
|
5,372
|
|
CRH PLC
|
584,420
|
|
9,033
|
|
Kerry Group PLC
|
770,871
|
|
29,739
|
|
Smurfit WestRock PLC
|
1,223,760
|
|
|
TOTAL
|
2,579,051
|
|
|
|
Italy-2.7%
|
||
|
135,889
|
|
Enel SpA
|
1,520,834
|
|
23,284
|
|
Generali
|
1,048,624
|
|
1,205,355
|
1
|
Telecom Italia SpA
|
1,025,105
|
|
16,776
|
|
UniCredit SpA
|
1,443,847
|
|
|
TOTAL
|
5,038,410
|
|
|
|
Japan-9.0%
|
||
|
54,500
|
|
Kawasaki Heavy Industries Ltd.
|
1,071,753
|
Annual Financial Statements and Additional Information
1
|
Shares
|
|
|
Value in
U.S. Dollars
|
|
|
|
COMMON STOCKS-continued
|
|
|
|
Japan-continued
|
||
|
72,600
|
|
KDDI Corp.
|
$ 1,249,909
|
|
47,700
|
|
Mitsubishi Estate Co. Ltd.
|
1,210,341
|
|
130,800
|
|
Mitsubishi UFJ Financial Group, Inc.
|
2,459,726
|
|
79,600
|
|
Mitsui Fudosan Co. Ltd.
|
762,830
|
|
46,400
|
|
Mizuho Financial Group, Inc.
|
2,092,582
|
|
51,200
|
|
MS&AD Insurance Group Holdings, Inc.
|
1,378,218
|
|
22,000
|
|
NEC Corporation
|
567,609
|
|
51,700
|
|
Renesas Electronics Corp.
|
1,457,457
|
|
12,300
|
|
Shin-Etsu Chemical Co. Ltd.
|
598,378
|
|
81,500
|
|
Sony Group Corp.
|
1,757,590
|
|
24,300
|
|
Sumitomo Mitsui Trust Group, Inc.
|
834,098
|
|
65,400
|
|
Toyota Motor Corp.
|
1,238,441
|
|
|
TOTAL
|
16,678,932
|
|
|
|
Netherlands-0.6%
|
||
|
13,837
|
|
Heineken NV
|
1,080,245
|
|
|
Russia-0.0%
|
||
|
8,422,100
|
1,2
|
Alrosa PJSC
|
0
|
|
|
South Korea-2.8%
|
||
|
7,064
|
|
Kia Corp.
|
793,805
|
|
10,021
|
|
Samsung Electronics Co. Ltd.
|
2,111,341
|
|
12,641
|
|
Shinhan Financial Group Co. Ltd.
|
784,836
|
|
958
|
|
SK Hynix, Inc.
|
1,494,674
|
|
|
TOTAL
|
5,184,656
|
|
|
|
Spain-2.8%
|
||
|
69,086
|
|
Banco Bilbao Vizcaya Argentaria SA
|
1,616,878
|
|
192,966
|
|
Banco Santander SA
|
2,418,142
|
|
70,042
|
|
Merlin Properties SOCIMI SA
|
1,231,024
|
|
|
TOTAL
|
5,266,044
|
|
|
|
Sweden-0.4%
|
||
|
34,091
|
|
Atlas Copco AB, Class A
|
649,671
|
|
|
Switzerland-2.7%
|
||
|
8,049
|
|
Nestle S.A.
|
816,659
|
|
7,999
|
|
Novartis AG
|
1,202,183
|
|
5,600
|
|
Roche Holding AG
|
2,357,344
|
|
2,832
|
|
Tecan AG
|
560,994
|
|
|
TOTAL
|
4,937,180
|
|
|
|
United Kingdom-12.4%
|
||
|
20,229
|
|
Anglo American PLC
|
1,078,403
|
|
7,179
|
|
AstraZeneca PLC
|
1,335,083
|
|
259,226
|
|
Barclays PLC
|
1,586,850
|
|
238,206
|
|
BP PLC
|
1,663,894
|
|
268,479
|
|
Breedon Group Ltd.
|
1,024,186
|
|
412,717
|
|
BT Group PLC
|
1,160,504
|
|
111,880
|
|
Glencore PLC
|
851,719
|
|
179,608
|
|
HSBC Holdings PLC
|
3,360,520
|
|
43,277
|
|
Imperial Brands PLC
|
1,575,945
|
|
221,503
|
|
Marks & Spencer Group PLC
|
1,061,580
|
|
135,249
|
|
Natwest Group PLC
|
1,080,800
|
|
232,290
|
|
Rentokil Initial PLC
|
1,400,071
|
|
79,573
|
|
Shell PLC
|
3,347,505
|
|
58,837
|
|
SSE PLC
|
1,846,924
|
Annual Financial Statements and Additional Information
2
|
Shares
|
|
|
Value in
U.S. Dollars
|
|
|
|
COMMON STOCKS-continued
|
|
|
|
United Kingdom-continued
|
||
|
18,485
|
|
Weir Group PLC/The
|
$ 608,456
|
|
|
TOTAL
|
22,982,440
|
|
|
|
TOTAL COMMON STOCKS
(IDENTIFIED COST $91,288,133)
|
94,768,902
|
|
|
|
INVESTMENT COMPANIES-48.0%
|
||
|
1,442,676
|
|
Federated Hermes Government Obligations Fund, Premier Shares, 3.54%3
|
1,442,676
|
|
18,939,074
|
|
Federated Hermes International Growth Fund, Institutional Shares
|
87,498,519
|
|
|
TOTAL INVESTMENT COMPANIES
(IDENTIFIED COST $74,736,891)
|
88,941,195
|
|
|
|
TOTAL INVESTMENT IN SECURITIES-99.2%
(IDENTIFIED COST $166,025,024)4
|
183,710,097
|
|
|
|
OTHER ASSETS AND LIABILITIES - NET-0.8%5
|
1,527,546
|
|
|
|
NET ASSETS-100%
|
$185,237,643
|
Transactions with affiliated investment companies, which are funds managed by the Adviser or an affiliate of the Adviser, during the period ended May 31, 2026, were as follows:
|
|
Federated Hermes
Government
Obligations Fund,
Premier Shares
|
Federated Hermes
International
Growth Fund,
Institutional Shares*
|
Total of
Affiliated
Transactions
|
|
Value as of 5/31/2025
|
$-
|
$459,003,467
|
$459,003,467
|
|
Purchases at Cost
|
$266,258,200
|
$92,114,839
|
$358,373,039
|
|
Proceeds from Sales
|
$(264,815,524)
|
$(414,199,999)
|
$(679,015,523)
|
|
Change in Unrealized Appreciation/Depreciation
|
$-
|
$(124,218,575)
|
$(124,218,575)
|
|
Net Realized Gain/(Loss)
|
$-
|
$74,798,787
|
$74,798,787
|
|
Value as of 5/31/2026
|
$1,442,676
|
$87,498,519
|
$88,941,195
|
|
Shares Held as of 5/31/2026
|
1,442,676
|
18,939,074
|
20,381,750
|
|
Dividend Income
|
$346,989
|
$4,308,292
|
$4,655,281
|
|
Gain Distributions Received
|
$-
|
$82,806,548
|
$82,806,548
|
|
*
|
At May 31, 2026, the Fund owns a majority of the outstanding shares of beneficial interest of Federated Hermes International Growth Fund.
|
|
1
|
Non-income-producing security.
|
|
2
|
Market quotations and price evaluations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established
by and under the general supervision of the Fund's Adviser acting through its Valuation Committee.
|
|
3
|
7-day net yield.
|
|
4
|
The cost of investments for federal tax purposes amounts to $193,473,102.
|
|
5
|
Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.
|
Note: The categories of investments are shown as a percentage of net assets at May 31, 2026.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1-quoted prices in active markets for identical securities.
Level 2-other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3-significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
Annual Financial Statements and Additional Information
3
The following is a summary of the inputs used, as of May 31, 2026, in valuing the Fund's assets carried at fair value:
|
Valuation Inputs
|
||||
|
|
Level 1-
Quoted
Prices
|
Level 2-
Other
Significant
Observable
Inputs
|
Level 3-
Significant
Unobservable
Inputs
|
Total
|
|
Equity Securities:
|
||||
|
Common Stocks
|
||||
|
International
|
$2,418,885
|
$92,350,017
|
$0
|
$94,768,902
|
|
Investment Companies
|
88,941,195
|
-
|
-
|
88,941,195
|
|
TOTAL SECURITIES
|
$91,360,080
|
$92,350,017
|
$0
|
$183,710,097
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
4
Financial Highlights-Class A Shares
(For a Share Outstanding Throughout Each Period)
|
|
Year Ended May 31,
|
||||
|
|
2026
|
2025
|
2024
|
2023
|
2022
|
|
Net Asset Value, Beginning of Period
|
$24.05
|
$25.29
|
$21.85
|
$24.31
|
$32.75
|
|
Income From Investment Operations:
|
|||||
|
Net investment income1
|
0.34
|
0.40
|
0.38
|
0.29
|
0.22
|
|
Net realized and unrealized gain (loss)
|
3.42
|
1.49
|
3.35
|
(1.41)
|
(5.04)
|
|
TOTAL FROM INVESTMENT OPERATIONS
|
3.76
|
1.89
|
3.73
|
(1.12)
|
(4.82)
|
|
Less Distributions:
|
|||||
|
Distributions from net investment income
|
(1.54)
|
(0.94)
|
(0.29)
|
(0.13)
|
(0.27)
|
|
Distributions from net realized gain
|
(16.47)
|
(2.19)
|
-
|
(1.21)
|
(3.35)
|
|
TOTAL DISTRIBUTIONS
|
(18.01)
|
(3.13)
|
(0.29)
|
(1.34)
|
(3.62)
|
|
Net Asset Value, End of Period
|
$9.80
|
$24.05
|
$25.29
|
$21.85
|
$24.31
|
|
Total Return2
|
25.52%
|
9.09%
|
17.21%
|
(4.33)%
|
(16.35)%
|
|
Ratios to Average Net Assets:
|
|||||
|
Net expenses3
|
0.78%4
|
0.77%4
|
0.78%4
|
0.77%4
|
0.78%
|
|
Net investment income
|
2.34%
|
1.65%
|
1.61%
|
1.34%
|
0.72%
|
|
Expense waiver/reimbursement5
|
0.70%
|
0.57%
|
0.55%
|
0.54%
|
0.53%
|
|
Supplemental Data:
|
|||||
|
Net assets, end of period (000 omitted)
|
$19,987
|
$19,348
|
$23,669
|
$22,383
|
$26,593
|
|
Portfolio turnover6
|
88%
|
11%
|
8%
|
15%
|
24%
|
|
1
|
Per share numbers have been calculated using the average shares method.
|
|
2
|
Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.
|
|
3
|
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
|
|
4
|
The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.78%, 0.77%, 0.78% and 0.77% for the
years ended May 31, 2026, 2025, 2024 and 2023, respectively, after taking into account these expense reductions.
|
|
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.
|
|
6
|
Securities that mature are considered sales for purposes of this calculation.
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
5
Financial Highlights-Class C Shares
(For a Share Outstanding Throughout Each Period)
|
|
Year Ended May 31,
|
||||
|
|
2026
|
2025
|
2024
|
2023
|
2022
|
|
Net Asset Value, Beginning of Period
|
$22.51
|
$23.85
|
$20.53
|
$22.96
|
$31.12
|
|
Income From Investment Operations:
|
|||||
|
Net investment income1
|
0.20
|
0.19
|
0.18
|
0.12
|
0.01
|
|
Net realized and unrealized gain (loss)
|
3.05
|
1.40
|
3.17
|
(1.34)
|
(4.78)
|
|
TOTAL FROM INVESTMENT OPERATIONS
|
3.25
|
1.59
|
3.35
|
(1.22)
|
(4.77)
|
|
Less Distributions:
|
|||||
|
Distributions from net investment income
|
(1.35)
|
(0.74)
|
(0.03)
|
-
|
(0.04)
|
|
Distributions from net realized gain
|
(16.47)
|
(2.19)
|
-
|
(1.21)
|
(3.35)
|
|
TOTAL DISTRIBUTIONS
|
(17.82)
|
(2.93)
|
(0.03)
|
(1.21)
|
(3.39)
|
|
Net Asset Value, End of Period
|
$7.94
|
$22.51
|
$23.85
|
$20.53
|
$22.96
|
|
Total Return2
|
24.55%
|
8.23%
|
16.34%
|
(5.07)%
|
(16.97)%
|
|
Ratios to Average Net Assets:
|
|||||
|
Net expenses3
|
1.56%4
|
1.56%4
|
1.53%4
|
1.52%4
|
1.53%
|
|
Net investment income
|
1.60%
|
0.82%
|
0.77%
|
0.56%
|
0.04%
|
|
Expense waiver/reimbursement5
|
0.65%
|
0.52%
|
0.55%
|
0.55%
|
0.53%
|
|
Supplemental Data:
|
|||||
|
Net assets, end of period (000 omitted)
|
$1,762
|
$2,257
|
$2,877
|
$3,451
|
$4,355
|
|
Portfolio turnover6
|
88%
|
11%
|
8%
|
15%
|
24%
|
|
1
|
Per share numbers have been calculated using the average shares method.
|
|
2
|
Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.
|
|
3
|
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
|
|
4
|
The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 1.56%, 1.56%, 1.53%, and 1.52% for the
years ended May 31, 2026, 2025, 2024 and 2023, respectively, after taking into account these expense reductions.
|
|
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.
|
|
6
|
Securities that mature are considered sales for purposes of this calculation.
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
6
Financial Highlights-Institutional Shares
(For a Share Outstanding Throughout Each Period)
|
|
Year Ended May 31,
|
||||
|
|
2026
|
2025
|
2024
|
2023
|
2022
|
|
Net Asset Value, Beginning of Period
|
$24.36
|
$25.58
|
$22.10
|
$24.59
|
$33.10
|
|
Income From Investment Operations:
|
|||||
|
Net investment income1
|
0.33
|
0.44
|
0.44
|
0.36
|
0.33
|
|
Net realized and unrealized gain (loss)
|
3.56
|
1.54
|
3.39
|
(1.44)
|
(5.12)
|
|
TOTAL FROM INVESTMENT OPERATIONS
|
3.89
|
1.98
|
3.83
|
(1.08)
|
(4.79)
|
|
Less Distributions:
|
|||||
|
Distributions from net investment income
|
(1.61)
|
(1.01)
|
(0.35)
|
(0.20)
|
(0.37)
|
|
Distributions from net realized gain
|
(16.47)
|
(2.19)
|
-
|
(1.21)
|
(3.35)
|
|
TOTAL DISTRIBUTIONS
|
(18.08)
|
(3.20)
|
(0.35)
|
(1.41)
|
(3.72)
|
|
Net Asset Value, End of Period
|
$10.17
|
$24.36
|
$25.58
|
$22.10
|
$24.59
|
|
Total Return2
|
25.90%
|
9.40%
|
17.48%
|
(4.11)%
|
(16.14)%
|
|
Ratios to Average Net Assets:
|
|||||
|
Net expenses3
|
0.52%4
|
0.52%4
|
0.53%4
|
0.53%4
|
0.53%
|
|
Net investment income
|
1.69%
|
1.82%
|
1.83%
|
1.60%
|
1.10%
|
|
Expense waiver/reimbursement5
|
0.66%
|
0.57%
|
0.55%
|
0.55%
|
0.55%
|
|
Supplemental Data:
|
|||||
|
Net assets, end of period (000 omitted)
|
$112,188
|
$560,784
|
$921,771
|
$934,400
|
$959,639
|
|
Portfolio turnover6
|
88%
|
11%
|
8%
|
15%
|
24%
|
|
1
|
Per share numbers have been calculated using the average shares method.
|
|
2
|
Based on net asset value.
|
|
3
|
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
|
|
4
|
The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.52%, 0.52%, 0.53% and 0.53% for the
years ended May 31, 2026, 2025, 2024 and 2023, respectively, after taking into account these expense reductions.
|
|
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.
|
|
6
|
Securities that mature are considered sales for purposes of this calculation.
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
7
Financial Highlights-Class R6 Shares
(For a Share Outstanding Throughout Each Period)
|
|
Year Ended May 31,
|
||||
|
|
2026
|
2025
|
2024
|
2023
|
2022
|
|
Net Asset Value, Beginning of Period
|
$24.37
|
$25.60
|
$22.11
|
$24.60
|
$33.11
|
|
Income From Investment Operations:
|
|||||
|
Net investment income1
|
0.35
|
0.45
|
0.45
|
0.35
|
0.33
|
|
Net realized and unrealized gain (loss)
|
3.54
|
1.53
|
3.40
|
(1.42)
|
(5.11)
|
|
TOTAL FROM INVESTMENT OPERATIONS
|
3.89
|
1.98
|
3.85
|
(1.07)
|
(4.78)
|
|
Less Distributions:
|
|||||
|
Distributions from net investment income
|
(1.64)
|
(1.02)
|
(0.36)
|
(0.21)
|
(0.38)
|
|
Distributions from net realized gain
|
(16.47)
|
(2.19)
|
-
|
(1.21)
|
(3.35)
|
|
TOTAL DISTRIBUTIONS
|
(18.11)
|
(3.21)
|
(0.36)
|
(1.42)
|
(3.73)
|
|
Net Asset Value, End of Period
|
$10.15
|
$24.37
|
$25.60
|
$22.11
|
$24.60
|
|
Total Return2
|
25.94%
|
9.41%
|
17.57%
|
(4.06)%
|
(16.10)%
|
|
Ratios to Average Net Assets:
|
|||||
|
Net expenses3
|
0.48%4
|
0.48%4
|
0.49%4
|
0.48%4
|
0.49%
|
|
Net investment income
|
2.17%
|
1.83%
|
1.88%
|
1.58%
|
1.09%
|
|
Expense waiver/reimbursement5
|
0.64%
|
0.51%
|
0.50%
|
0.51%
|
0.50%
|
|
Supplemental Data:
|
|||||
|
Net assets, end of period (000 omitted)
|
$51,301
|
$194,740
|
$375,537
|
$370,914
|
$507,249
|
|
Portfolio turnover6
|
88%
|
11%
|
8%
|
15%
|
24%
|
|
1
|
Per share numbers have been calculated using the average shares method.
|
|
2
|
Based on net asset value.
|
|
3
|
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
|
|
4
|
The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.48%, 0.48%, 0.49% and 0.48% for the
years ended May 31, 2026, 2025, 2024 and 2023, respectively, after taking into account these expense reductions.
|
|
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.
|
|
6
|
Securities that mature are considered sales for purposes of this calculation.
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
8
Statement of Assets and Liabilities
May 31, 2026
|
Assets:
|
|
|
Investment in securities including $88,941,195 of investment in affiliated holdings* (identified cost $166,025,024, including $74,736,891 of
identified cost in affiliated holdings)
|
$183,710,097
|
|
Cash denominated in foreign currencies
|
211,769
|
|
Income receivable
|
1,832,136
|
|
Receivable for shares sold
|
26,180
|
|
Total Assets
|
185,780,182
|
|
Liabilities:
|
|
|
Payable for investments purchased
|
$211,794
|
|
Payable for shares redeemed
|
180,324
|
|
Payable for portfolio accounting fees
|
38,925
|
|
Payable for auditing fees
|
32,105
|
|
Payable for transfer agent fees (Note 2)
|
30,617
|
|
Payable for share registration costs
|
14,183
|
|
Payable for legal fees
|
4,717
|
|
Payable for investment adviser fee (Note 5)
|
4,529
|
|
Payable for other service fees (Notes 2 and 5)
|
4,455
|
|
Payable for capital gains taxes
|
3,901
|
|
Payable for administrative fee (Note 5)
|
1,210
|
|
Payable for distribution services fee (Note 5)
|
1,156
|
|
Payable to bank
|
803
|
|
Accrued expenses (Note 5)
|
13,820
|
|
TOTAL LIABILITIES
|
542,539
|
|
Net assets for 18,350,721 shares outstanding
|
$185,237,643
|
|
Net Assets Consist of:
|
|
|
Paid-in capital
|
$143,257,560
|
|
Total distributable earnings (loss)
|
41,980,083
|
|
NET ASSETS
|
$185,237,643
|
|
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
|
|
|
Class A Shares:
|
|
|
Net asset value per share ($19,986,756 ÷ 2,039,026 shares
outstanding) no par value, unlimited shares authorized
|
$9.80
|
|
Offering price per share (100/94.50 of $9.80)
|
$10.37
|
|
Redemption proceeds per share
|
$9.80
|
|
Class C Shares:
|
|
|
Net asset value per share ($1,761,759 ÷ 221,840 shares
outstanding) no par value, unlimited shares authorized
|
$7.94
|
|
Offering price per share
|
$7.94
|
|
Redemption proceeds per share (99.00/100 of $7.94)
|
$7.86
|
|
Institutional Shares:
|
|
|
Net asset value per share ($112,188,015 ÷ 11,033,875 shares
outstanding) no par value, unlimited shares authorized
|
$10.17
|
|
Offering price per share
|
$10.17
|
|
Redemption proceeds per share
|
$10.17
|
|
Class R6 Shares:
|
|
|
Net asset value per share ($51,301,113 ÷ 5,055,980 shares
outstanding) no par value, unlimited shares authorized
|
$10.15
|
|
Offering price per share
|
$10.15
|
|
Redemption proceeds per share
|
$10.15
|
|
*
|
See information listed after the Fund's Portfolio of Investments.
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
9
Statement of Operations
Year Ended May 31, 2026
|
Investment Income:
|
|
|
Dividends (including $4,655,281 received from affiliated holdings* and net of foreign taxes withheld of $444,865)
|
$8,502,328
|
|
Expenses:
|
|
|
Investment adviser fee (Note 5)
|
$3,075,984
|
|
Administrative fee (Note 5)
|
281,077
|
|
Custodian fees
|
180,139
|
|
Transfer agent fees (Note 2)
|
315,853
|
|
Directors'/Trustees' fees (Note 5)
|
3,813
|
|
Auditing fees
|
40,132
|
|
Legal fees
|
10,935
|
|
Distribution services fee (Note 5)
|
15,801
|
|
Other service fees (Notes 2 and 5)
|
54,327
|
|
Portfolio accounting fees
|
152,291
|
|
Share registration costs
|
74,715
|
|
Printing and postage
|
72,303
|
|
Miscellaneous (Note 5)
|
31,533
|
|
TOTAL EXPENSES
|
4,308,903
|
|
Waiver, Reimbursements and Reduction:
|
|
|
Waiver/reimbursement of investment adviser fee (Note 5)
|
(2,225,913)
|
|
Reimbursement of other operating expenses (Notes 2 and 5)
|
(146,463)
|
|
Reduction of custodian fees (Note 6)
|
(9,229)
|
|
TOTAL WAIVER, REIMBURSEMENTS AND REDUCTION
|
(2,381,605)
|
|
Net expenses
|
1,927,298
|
|
Net investment income
|
6,575,030
|
|
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts and Foreign Currency Transactions:
|
|
|
Net realized gain on investments (including net realized gain of $74,798,787 on sales of investments in affiliated holdings*) and foreign
currency transactions
|
216,466,908
|
|
Net realized gain on futures contracts
|
24,055
|
|
Realized gain distribution from affiliated investment company shares*
|
82,806,548
|
|
Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency (including net change in
unrealized appreciation of $(124,218,575) of investments in affiliated holdings* and increase in payable for capital gains taxes of $8)
|
(224,820,503)
|
|
Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency transactions
|
74,477,008
|
|
Change in net assets resulting from operations
|
$81,052,038
|
|
*
|
See information listed after the Fund's Portfolio of Investments.
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
10
Statement of Changes in Net Assets
|
Year Ended May 31
|
2026
|
2025
|
|
Increase (Decrease) in Net Assets
|
||
|
Operations:
|
||
|
Net investment income
|
$6,575,030
|
$19,354,185
|
|
Net realized gain
|
299,297,511
|
133,695,067
|
|
Net change in unrealized appreciation/depreciation
|
(224,820,503)
|
(70,749,601)
|
|
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
|
81,052,038
|
82,299,651
|
|
Distributions to Shareholders:
|
||
|
Class A Shares
|
(13,580,493)
|
(2,332,435)
|
|
Class C Shares
|
(1,584,701)
|
(307,073)
|
|
Institutional Shares
|
(105,253,385)
|
(86,212,503)
|
|
Class R6 Shares
|
(34,206,963)
|
(38,944,596)
|
|
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS
|
(154,625,542)
|
(127,796,607)
|
|
Share Transactions:
|
||
|
Proceeds from sale of shares
|
49,348,198
|
145,895,570
|
|
Net asset value of shares issued to shareholders in payment of distributions declared
|
150,105,290
|
110,405,567
|
|
Cost of shares redeemed
|
(717,771,219)
|
(757,529,959)
|
|
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS
|
(518,317,731)
|
(501,228,822)
|
|
Change in net assets
|
(591,891,235)
|
(546,725,778)
|
|
Net Assets:
|
||
|
Beginning of period
|
777,128,878
|
1,323,854,656
|
|
End of period
|
$185,237,643
|
$777,128,878
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
11
Notes to Financial Statements
May 31, 2026
1. ORGANIZATION
Federated Hermes Adviser Series (the "Trust") was established as a Delaware statutory trust on July 18, 2017 and is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of 10 portfolios. The financial statements included herein are only those of Federated Hermes International Equity Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers four classes of shares: Class A Shares, Class C Shares, Institutional Shares and Class R6 Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide long-term capital appreciation.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
■
Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
■
Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.
■
Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and ask quotations.
■
Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by Federated Global Investment Management Corp. (the "Adviser").
■
For securities that are fair valued in accordance with procedures established by and under the general supervision of the Adviser, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer's financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.
If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Adviser's valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion of the Adviser's valuation committee ("Valuation Committee"), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.
Fair Valuation and Significant Events Procedures
Pursuant to Rule 2a-5 under the Act, the Fund's Board of Trustees (the "Trustees") has designated the Adviser as the Fund's valuation designee to perform any fair value determinations for securities and other assets held by the Fund. The Adviser is subject to the Trustees' oversight and certain reporting and other requirements intended to provide the Trustees the information needed to oversee the Adviser's fair value determinations.
The Adviser, acting through its Valuation Committee, is responsible for determining the fair value of investments for which market quotations are not readily available. The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser's affiliated companies and determines fair value and oversees the calculation of the NAV. The Valuation Committee is also authorized to use pricing services to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-partypricing services' policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Adviser. The Trustees periodically review the fair valuations made by the Valuation Committee. The Trustees have also approved the Adviser's fair valuation and significant events procedures as part of the Fund's compliance program and will review any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between
Annual Financial Statements and Additional Information
12
the prices bid and ask for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-incomesecurities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Adviser.
The Adviser has also adopted procedures requiring an investment to be priced at its fair value whenever the Valuation Committee determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
■
With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;
■
Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;
■
Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.
The Adviser has adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Valuation Committee will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Adviser. The Trustees periodically review fair valuations made in response to significant events.
Repurchase Agreements
The Fund may invest in repurchase agreements for short-term liquidity purposes. It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. Certain repurchase agreements may be structured as loans secured by a security interest or lien on the eligible securities. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.
The insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.
The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.
Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income and capital gains, if any, are declared and paid at least annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses. The detail of the total fund expense waiver, reimbursements and reduction of $2,381,605 is disclosed in this Note 2, Note 5and Note 6.
Transfer Agent Fees
For the year ended May 31, 2026, transfer agent fees for the Fund were as follows:
|
|
Transfer Agent
Fees Incurred
|
Transfer Agent
Fees Reimbursed
|
|
Class A Shares
|
$19,416
|
$(8,805)
|
|
Class C Shares
|
1,948
|
-
|
|
Institutional Shares
|
285,662
|
(137,658)
|
|
Class R6 Shares
|
8,827
|
-
|
|
TOTAL
|
$315,853
|
$(146,463)
|
Annual Financial Statements and Additional Information
13
Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund's Class A Shares, Class C Shares and Institutional Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees. For the year ended May 31, 2026, other service fees for the Fund were as follows:
|
|
Other Service
Fees Incurred
|
|
Class A Shares
|
$49,083
|
|
Class C Shares
|
5,244
|
|
TOTAL
|
$54,327
|
For the year ended May 31, 2026, the Fund's Institutional Shares did not incur other service fees.
Federal Taxes
It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986 (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the year ended May 31, 2026, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of May 31, 2026, tax years 2023 through 2026 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the State of Delaware.
The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or gains are earned.
When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Foreign Currency Translation
The accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the rates of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at period end, resulting from changes in the exchange rate.
Futures Contracts
The Fund purchases and sells financial futures contracts to manage duration, market and yield curve risks. Upon entering into a financial futures contract with a broker, the Fund is required to deposit with a broker, either U.S. government securities or a specified amount of cash, which is shown as due from broker in the Statement of Assets and Liabilities. Futures contracts are valued daily and unrealized gains or losses are recorded in a "variation margin" account. The Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. There is minimal counterparty risk to the Fund since futures contracts are exchange-traded and the exchange's clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees the futures contracts against default.
At May 31, 2026, the Fund had no outstanding futures contracts.
The average notional value of futures contracts held by the Fund throughout the period was $4,650. This is based on amounts held as of each day throughout the fiscal year.
The Effect of Derivative Instruments on the Statement of Operations for the Year Ended May 31, 2026
|
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
|
|
|
|
Futures
Contracts
|
|
Equity contracts
|
$24,055
|
Annual Financial Statements and Additional Information
14
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ materially from those estimated. The Fund applies investment company accounting and reporting guidance.
3. SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
|
|
Year Ended
5/31/2026
|
Year Ended
5/31/2025
|
||
|
Class A Shares:
|
Shares
|
Amount
|
Shares
|
Amount
|
|
Shares sold
|
328,792
|
$4,820,738
|
147,226
|
$3,492,849
|
|
Shares issued to shareholders in payment of distributions declared
|
1,532,810
|
13,274,135
|
107,371
|
2,282,712
|
|
Shares redeemed
|
(626,990)
|
(8,314,026)
|
(386,153)
|
(9,349,593)
|
|
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS
|
1,234,612
|
$9,780,847
|
(131,556)
|
$(3,574,032)
|
|
|
Year Ended
5/31/2026
|
Year Ended
5/31/2025
|
||
|
Class C Shares:
|
Shares
|
Amount
|
Shares
|
Amount
|
|
Shares sold
|
30,122
|
$261,630
|
2,060
|
$43,954
|
|
Shares issued to shareholders in payment of distributions declared
|
225,078
|
1,584,551
|
15,375
|
307,043
|
|
Shares redeemed
|
(133,598)
|
(1,201,579)
|
(37,855)
|
(832,353)
|
|
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS
|
121,602
|
$644,602
|
(20,420)
|
$(481,356)
|
|
|
Year Ended
5/31/2026
|
Year Ended
5/31/2025
|
||
|
Institutional Shares:
|
Shares
|
Amount
|
Shares
|
Amount
|
|
Shares sold
|
1,742,645
|
$33,991,597
|
3,512,940
|
$84,647,006
|
|
Shares issued to shareholders in payment of distributions declared
|
11,430,966
|
102,535,767
|
3,918,560
|
84,288,218
|
|
Shares redeemed
|
(25,158,987)
|
(540,918,584)
|
(20,440,453)
|
(499,461,671)
|
|
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS
|
(11,985,376)
|
$(404,391,220)
|
(13,008,953)
|
$(330,526,447)
|
|
|
Year Ended
5/31/2026
|
Year Ended
5/31/2025
|
||
|
Class R6 Shares:
|
Shares
|
Amount
|
Shares
|
Amount
|
|
Shares sold
|
497,060
|
$10,274,233
|
2,246,720
|
$57,711,761
|
|
Shares issued to shareholders in payment of distributions declared
|
3,654,842
|
32,710,837
|
1,093,798
|
23,527,594
|
|
Shares redeemed
|
(7,086,960)
|
(167,337,030)
|
(10,021,733)
|
(247,886,342)
|
|
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS
|
(2,935,058)
|
$(124,351,960)
|
(6,681,215)
|
$(166,646,987)
|
|
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS
|
(13,564,220)
|
$(518,317,731)
|
(19,842,144)
|
$(501,228,822)
|
4. FEDERAL TAX INFORMATION
The accounting treatment of certain items in accordance with income tax regulations may differ from the accounting treatment in accordance with GAAP which may result in permanent differences. In the case of the Fund, such differences primarily result from prior-yeartax return true-up adjustments and equalization.
For the year ended May 31, 2026, permanent differences identified and reclassified among the components of net assets were as follows:
|
Increase (Decrease)
|
|
|
Paid-in Capital
|
Total Distributable
Earnings (Loss)
|
|
$170,540,356
|
$(170,540,356)
|
Net assets were not affected by this reclassification.
Annual Financial Statements and Additional Information
15
The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended May 31, 2026 and 2025, was as follows:
|
|
2026
|
2025
|
|
Ordinary income
|
$13,737,658
|
$43,040,300
|
|
Long-term capital gains
|
$140,887,884
|
$84,756,307
|
|
TOTAL
|
$154,625,542
|
$127,796,607
|
As of May 31, 2026, the components of distributable earnings on a tax-basis were as follows:
|
Undistributed ordinary income
|
$9,270,737
|
|
Undistributed long-term capital gains
|
$42,370,804
|
|
Net unrealized depreciation
|
$(9,763,005)
|
|
Other temporary differences
|
$101,547
|
|
TOTAL
|
$41,980,083
|
At May 31, 2026, the cost of investments for federal tax purposes was $193,473,102. The net unrealized depreciation of investments for federal tax purposes was $9,763,005. This consists of unrealized appreciation from investments for those securities having an excess of value over cost of $8,098,123 and unrealized depreciation from investments for those securities having an excess of cost over value of $17,861,128. The difference between book-basis and tax-basis net unrealized depreciation is attributable to differing treatments for the deferral of losses on wash sales and passive foreign investment company income.
5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.85% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund for competitive reasons such as to maintain the Fund's expense ratio, or as and when appropriate, to maintain positive or zero net yields. For the year ended May 31, 2026, the Adviser voluntarily waived $698,560 of its fee and voluntarily reimbursed $146,463 of transfer agent fees.
The Adviser has agreed to reimburse the Fund's investment adviser fees with respect to the proportionate share of all expenses applicable to the amount of net assets invested in other affiliated investment companies. For the year ended May 31, 2026, the Adviser reimbursed $1,527,353.
Administrative Fee
Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, "Investment Complex" is defined as all of the Federated Hermes Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:
|
Administrative Fee
|
Average Daily Net Assets
of the Investment Complex
|
|
0.100%
|
on assets up to $50 billion
|
|
0.075%
|
on assets over $50 billion
|
Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the year ended May 31, 2026, the annualized fee paid to FAS was 0.078% of average daily net assets of the Fund.
In addition, FAS may charge certain out-of-pocket expenses to the Fund.
Distribution Services Fee
The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class A Shares and Class C Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at the following percentages of average daily net assets annually, to compensate FSC:
|
|
Percentage of Average Daily
Net Assets of Class
|
|
Class A Shares
|
0.05%
|
|
Class C Shares
|
0.75%
|
Annual Financial Statements and Additional Information
16
Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee. For the year ended May 31, 2026, distribution services fees for the Fund were as follows:
|
|
Distribution Services
Fees Incurred
|
|
Class C Shares
|
$15,801
|
When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the year ended May 31, 2026, FSC retained $547 of fees paid by the Fund. For the year ended May 31, 2026, the Fund's Class A Shares did not incur a distribution services fee; however, it may begin to incur this fee upon approval of the Trustees.
Sales Charges
Front-end sales charges and contingent deferred sales charges do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the year ended May 31, 2026, FSC retained $861 in sales charges from the sale of Class A Shares. FSC also retained $466 of CDSC relating to redemptions of Class C Shares.
Other Service Fees
For the year ended May 31, 2026, FSSC received $2,688 of other service fees disclosed in Note 2.
Expense Limitation
The Adviser and certain of its affiliates (which may include FSC, FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding tax reclaim recovery expenses, interest expense, extraordinary expenses and proxy-related expenses, if any) paid by the Fund's Class A Shares, Class C Shares, Institutional Shares and Class R6 Shares (after the voluntary waivers and/or reimbursements) will not exceed 1.19%, 1.99%, 0.94% and 0.90% (the "Fee Limit"), respectively, up to but not including the later of (the "Termination Date"): (a) August 1, 2027; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the approval of the Trustees.
Transactions with Affiliated Investment Companies
The Fund invests in Federated Hermes International Growth Fund (FIGRF), another diversified portfolio of the Trust which is also managed by the Adviser. The investment objective of FIGRF is to seek to provide long-term capital appreciation. Income distributions from FIGRF are declared and paid annually. All income distributions are recorded by the Fund as dividend income. Capital gain distributions of FIGRF, if any, are declared and paid annually, and are recorded by the Fund as capital gains received. A copy of FIGRF's financial statements is available on the EDGAR Database on the Securities and Exchange Commission's (SEC) website or upon request from the Fund.
Directors'/Trustees' and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Independent Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
6. EXPENSE REDUCTION
Through arrangements with the Fund's custodian, net credits realized as a result of uninvested cash balances were used to offset custody expenses. For the year ended May 31, 2026, the Fund's expenses were offset by $9,229 under these arrangements.
7. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended May 31, 2026, were as follows:
|
Purchases
|
$322,319,182
|
|
Sales
|
$965,678,673
|
8. CONCENTRATION OF RISK
The Fund invests in securities of non-U.S. issuers. Political or economic developments may have an effect on the liquidity and volatility of portfolio securities and currency holdings.
The Fund may invest a portion of its assets in securities of companies that are deemed by the Fund's management to be classified in similar business sectors. Economic developments may have an effect on the liquidity and volatility of the portfolio securities. A substantial portion of the Fund's portfolio may be comprised of entities in the Financials and Information Technology sectors. As a result, the Fund may be more susceptible to any economic, business, political or other developments which generally affect these entities.
Annual Financial Statements and Additional Information
17
9. LINE OF CREDIT
The Fund participates with certain other Federated Hermes Funds, on a several basis, in an up to $500,000,000 unsecured, 364-day, committed, revolving line of credit (LOC) agreement dated June 17, 2025, which was renewed on June 16, 2026 for an amount up to $400,000,000. The LOC was made available to temporarily finance the repurchase or redemption of shares of the Fund, failed trades, payment of dividends, settlement of trades and for other short-term, temporary or emergency general business purposes. The Fund cannot borrow under the LOC if an inter-fund loan is outstanding. The Fund's ability to borrow under the LOC also is subject to the limitations of the Act and various conditions precedent that must be satisfied before the Fund can borrow. Loans under the LOC are charged interest at a fluctuating rate per annum equal to (a) the highest, on any day, of (i) the federal funds effective rate, (ii) the published secured overnight financing rate plus an assigned percentage, and (iii) 0.0%, plus (b) a margin. Any fund eligible to borrow under the LOC pays its pro rata share of a commitment fee based on the amount of the lenders' commitment that has not been utilized, quarterly in arrears and at maturity. As of May 31, 2026, the Fund had no outstanding loans. During the year ended May 31, 2026, the Fund did not utilize the LOC.
10. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other funds advised by subsidiaries of Federated Hermes, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of May 31, 2026, there were no outstanding loans. During the year ended May 31, 2026, the program was not utilized.
11. OPERATING SEGMENTS
An operating segment is defined as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity's chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. A management committee of the Adviser acts as the CODM. The Fund represents a single operating segment, as the CODM monitors the operating results of the Fund as a whole and the strategic asset allocation is determined based on the investment objective of the Fund and executed by the Fund's portfolio management team. The financial information in the form of the Fund's portfolio composition, total returns, expense ratios and changes in net assets (i.e., changes in net assets resulting from operations, subscriptions and redemptions) which is reviewed by the CODM to assess the Fund's performance in comparison to the Fund's benchmarks and to make resource allocation decisions for the Fund's single segment is consistent with the information presented in these financial statements. Segment assets are reflected on the accompanying Statement of Assets and Liabilities as "total assets" and significant segment expenses are listed on the accompanying Statement of Operations.
12. INDEMNIFICATIONS
Under the Fund's organizational documents, its Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund (other than liabilities arising out of their willful misfeasance, bad faith, gross negligence or reckless disregard of their duties to the Fund). In addition, in the normal course of business, the Fund provides certain indemnifications under arrangements with third parties. Typically, obligations to indemnify a third party arise in the context of an arrangement entered into by the Fund under which the Fund agrees to indemnify such third party for certain liabilities arising out of actions taken pursuant to the arrangement, provided the third party's actions are not deemed to have breached an agreed-upon standard of care (such as willful misfeasance, bad faith, gross negligence or reckless disregard of their duties under the contract). The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet arisen. The Fund does not anticipate any material claims or losses pursuant to these arrangements at this time, and accordingly expects the risk of loss to be remote.
13. FEDERAL TAX INFORMATION (UNAUDITED)
For the fiscal year ended May 31, 2026, 62.0% of total ordinary income distributions made by the Fund are qualifying dividends which may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Act of 2003. Complete information is reported in conjunction with the reporting of your distributions on Form 1099-DIV.
If the Fund meets the requirements of Section 853 of the Code, the Fund will pass through to its shareholders credits for foreign taxes paid. For the fiscal year ended May 31, 2026, the Fund derived $6,120,036 of gross income from foreign sources and paid foreign taxes of $234,154.
For the year ended May 31, 2026, the amount of long-term capital gains designated by the Fund was $287,215,373.
Annual Financial Statements and Additional Information
18
Report of Independent Registered Public Accounting Firm
To the SHAREHOLDERS OF FEDERATED HERMES INTERNATIONAL EQUITY FUND AND the Board of Trustees of Federated Hermes Adviser Series:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Federated Hermes International Equity Fund (the Fund), a portfolio of Federated Hermes Adviser Series, including the portfolio of investments, as of May 31, 2026, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of May 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of May 31, 2026, by correspondence with the custodian, transfer agent of the underlying funds, and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor for one or more Federated Hermes' investment companies since 2006.
Boston, Massachusetts
July 24, 2026
July 24, 2026
Annual Financial Statements and Additional Information
19
Evaluation and Approval of Advisory Contract-May 2026
Federated Hermes International Equity Fund (the "Fund")
At its meetings in May 2026 (the "May Meetings"), the Fund's Board of Trustees (the "Board"), including those Trustees who are not "interested persons" of the Fund, as defined in the Investment Company Act of 1940, as amended (the "Independent Trustees"), reviewed and unanimously approved the continuation of the investment advisory contract between the Fund and Federated Global Investment Management Corp. (the "Adviser") (the "Contract") for an additional one-year term. The Board's determination to approve the continuation of the Contract reflects the exercise of its business judgment after considering such information deemed necessary to evaluate the terms of the Contract and to approve the continuation of the existing arrangement. The information, factors and conclusions that formed the basis for the Board's approval are summarized below.
Information Received and Review Process
At the request of the Independent Trustees, the Fund's Chief Compliance Officer (the "CCO") furnished to the Board in advance of its May Meetings an independent written report regarding data related to the Fund's management fee (the "CCO Management Fee Report"). The Board considered the CCO Management Fee Report, along with other information, in evaluating the reasonableness of the Fund's management fee and in determining to approve the continuation of the Contract.
In addition to the CCO Management Fee Report, the Board considered information specifically prepared in connection with the approval of the continuation of the Contract that was presented at the May Meetings. In this regard, in the months preceding the May Meetings, the Board requested and reviewed written responses and supporting materials prepared by the Adviser and its affiliates (collectively, "Federated Hermes") in response to requests posed to Federated Hermes by independent legal counsel on behalf of the Independent Trustees encompassing a wide variety of topics, including those summarized below. The Board also considered such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the Contract, which included detailed information about the Fund and Federated Hermes furnished to the Board at its meetings throughout the year.
The Board's consideration of the Contract included review of materials and information covering the following matters, among others: (1) a copy of the Contract; (2) the nature, quality and extent of the advisory and other services provided to the Fund by Federated Hermes; (3) Federated Hermes' business and operations; (4) the Adviser's investment philosophy, personnel and processes; (5) the Fund's investment objective and strategies; (6) the Fund's short-term and long-term performance - in absolute terms (both on a gross basis and net of expenses) and relative to an appropriate group of peer funds and its benchmark; (7) the Fund's fees and expenses, including the advisory fee and the overall expense structure of the Fund - in absolute terms and relative to an appropriate group of peer funds, with due regard for contractual or voluntary expense limitations (if any); (8) the financial condition of Federated Hermes; (9) the Adviser's profitability with respect to managing the Fund; (10) distribution and sales activity for the Fund; and (11) the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any).
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees charged to other registered funds in evaluating the Contract. Using these judicial decisions as a guide, the Board considered several factors it deemed relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund, including: (1) the nature and quality of the services provided by the adviser to the fund and its shareholders, including the performance of the fund, its benchmark and comparable funds; (2) the adviser's cost of providing the services and the profitability to the adviser of providing advisory services to the fund; (3) the extent to which the adviser may realize "economies of scale" as the fund grows larger and, if such economies of scale exist, whether they have been appropriately shared with the fund and its shareholders or the family of funds; (4) any "fall-out" benefits that accrue to the adviser because of its relationship with the fund, including research services received from brokers that execute fund trades and any fees paid to affiliates of the adviser for services rendered to the fund; (5) comparative fees and expenses, including a comparison of management fees paid to the adviser with those paid by similar funds managed by the same adviser or other advisers as well as management fees charged to institutional and other advisory clients of the same adviser for what might be viewed as like services; and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise, including whether they are fully informed about all facts the board deems relevant to its consideration of the adviser's services and fees. The Board considered that the Securities and Exchange Commission ("SEC") disclosure requirements regarding the basis for a fund board's approval of the fund's investment advisory contract generally align with the factors listed above. The Board was guided by these factors in its evaluation of the Contract to the extent it considered them to be appropriate and relevant, as discussed further below. The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated Hermes on matters relating to the oversight of the other funds advised by Federated Hermes (each, a "Federated Hermes Fund" and, collectively, the "Federated Hermes Funds").
Annual Financial Statements and Additional Information
20
In addition, the Board considered the preferences and expectations of Fund shareholders and the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew the Contract. In particular, the Board recognized that many shareholders likely have invested in the Fund based on the strength of Federated Hermes' industry standing and reputation and with the expectation that Federated Hermes will have a continuing role in providing advisory services to the Fund. Thus, the Board observed that there are a range of investment options available to the Fund's shareholders in the marketplace, and such shareholders, having had the opportunity to consider other investment options, have effectively selected Federated Hermes by virtue of investing in the Fund.
In determining to approve the continuation of the Contract, the members of the Board reviewed and evaluated information and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment. While individual members of the Board may have weighed certain factors differently, the Board's determination to approve the continuation of the Contract was based on a comprehensive consideration of all information provided to the Board throughout the year. The Board recognized that its evaluation process is evolutionary and that the factors considered and the emphasis placed on relevant factors may change in recognition of changing circumstances in the registered fund marketplace. The Independent Trustees were assisted throughout the evaluation process by independent legal counsel. In connection with their deliberations at the May Meetings, the Independent Trustees met separately in executive session with their independent legal counsel and without management present to review the relevant materials and consider their responsibilities under applicable laws. In addition, senior management representatives of Federated Hermes also met with the Independent Trustees and their independent legal counsel to discuss the materials and presentations furnished to the Board at the May Meetings. The Board considered the approval of the Contract for the Fund as part of its consideration of agreements for funds across the family of Federated Hermes Funds, but its approvals were made on a fund-by-fund basis.
Nature, Extent and Quality of Services
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of Federated Hermes dedicated to the Fund. In this regard, the Board evaluated, among other things, the terms of the Contract and the full range of services provided to the Fund by Federated Hermes. The Board considered the Adviser's personnel, investment philosophy and process, investment research capabilities and resources, trade operations capabilities, experience and performance track record. The Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and evaluated Federated Hermes' ability and experience in attracting and retaining qualified personnel to service the Fund. The Board considered the trading operations by the Adviser, including the execution of portfolio transactions and the selection of brokers for those transactions. The Board also considered the Adviser's ability to deliver competitive investment performance for the Fund when compared to the Fund's Performance Peer Group (as defined below).
In addition, the Board considered the financial resources and overall reputation of Federated Hermes and its willingness to consider and make investments in personnel, infrastructure, technology, cybersecurity, business continuity planning and operational enhancements that are designed to benefit the Federated Hermes Funds. The Board considered Federated Hermes' oversight of the securities lending program for the Federated Hermes Funds that engage in securities lending and noted the income earned by the Federated Hermes Funds that participate in such program. In addition, the Board considered the quality of Federated Hermes' communications with the Board and responsiveness to Board inquiries and requests made from time to time with respect to the Federated Hermes Funds. The Board also considered that Federated Hermes is responsible for providing the Federated Hermes Funds' officers.
The Board received and evaluated information regarding Federated Hermes' regulatory and compliance environment. The Board considered Federated Hermes' compliance program and compliance history and reports from the CCO about Federated Hermes' compliance with applicable laws and regulations, including responses to regulatory developments and any compliance or other issues raised by regulatory agencies. The Board also noted Federated Hermes' support of the Federated Hermes Funds' compliance control structure and the compliance-related resources devoted by Federated Hermes in support of the Fund's obligations pursuant to Rule 38a-1 under the Investment Company Act of 1940, as amended, including Federated Hermes' commitment to respond to rulemaking and other regulatory initiatives of the SEC. The Board considered Federated Hermes' approach to internal audits and risk management with respect to the Federated Hermes Funds and its day-to-day oversight of the Federated Hermes Funds' compliance with their investment objectives and policies as well as with applicable laws and regulations, noting that regulatory and other developments had over time led, and continue to lead, to an increase in the scope of Federated Hermes' oversight in this regard. In addition, the Board noted Federated Hermes' commitment to maintaining high quality systems and expending substantial resources to prepare for and respond to ongoing changes due to the market, regulatory and control environments in which the Fund and its service providers operate.
Annual Financial Statements and Additional Information
21
The Board considered Federated Hermes' efforts to provide shareholders in the Federated Hermes Funds with a comprehensive array of funds with different investment objectives, policies and strategies. The Board considered the expenses that Federated Hermes had incurred, as well as the entrepreneurial and other risks assumed by Federated Hermes, in sponsoring and providing on-going services to new funds to expand these opportunities for shareholders. The Board noted the benefits to shareholders of being part of the family of Federated Hermes Funds, which include the general right to exchange investments between the same class of shares without the incurrence of additional sales charges.
Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided by the Adviser to the Fund.
Fund Investment Performance
The Board considered the investment performance of the Fund. In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks. The Board considered detailed investment reports on, and the Adviser's analysis of, the Fund's performance over different time periods that were provided to the Board throughout the year and in connection with the May Meetings. These reports included, among other items, information on the Fund's gross and net returns, the Fund's investment performance compared to one or more relevant categories or groups of peer funds and the Fund's benchmark, performance attribution information and commentary on the effect of market conditions. The Board noted that it evaluated investment performance at meetings throughout the year and received reports from Federated Hermes regarding the performance of certain Federated Hermes Funds as well as Federated Hermes' explanations for less favorable performance and any specific actions Federated Hermes had taken, or had determined to take, to seek to enhance Fund investment performance and the results of those actions.
The Board also reviewed comparative information regarding the performance of other registered funds in the category of peer funds selected by Morningstar, Inc. ("Morningstar"), an independent fund ranking organization (the "Performance Peer Group"). The Board noted the CCO's statement that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund.
The Board also considered comparative performance data from Lipper, Inc. that was included in reports provided to the Board throughout the year.
The Board considered that the Fund's performance fell below the median of the Performance Peer Group for the one-year,three-year and five-year periods ended December 31, 2025. The Board discussed the Fund's performance with the Adviser, including the reasons for and any plans to seek to improve the Fund's performance, and recognized the efforts being taken by the Adviser in the context of other factors considered relevant by the Board.
Based on these considerations, the Board concluded that it had continued confidence in the Adviser's overall capabilities to manage the Fund.
Fund Expenses
The Board considered the advisory fee and overall expense structure of the Fund and the comparative fee and expense information that had been provided in connection with the May Meetings. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund's total expense ratio (i.e., gross and net advisory fees, administrative fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated Hermes from the overall category of peer funds selected by Morningstar (the "Expense Peer Group"). The Board received a description of the methodology used to select the Expense Peer Group from the overall Morningstar category. The Board also reviewed comparative information regarding the fees and expenses of the broader group of funds in the overall Morningstar category.
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged to funds by other advisers, the use of comparisons between the Fund and its Expense Peer Group assisted the Board in its evaluation of the Fund's fees and expenses. The Board focused on comparisons with other registered funds more heavily than non-registered fund products or services because such comparisons are believed to be more relevant. The Board considered that other registered funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle, in fact, chosen and maintained by the Fund's shareholders. The Board noted that the range of such other registered funds' fees and expenses, therefore, appears to be a relevant indicator of what investors have found to be reasonable in the marketplace in which the Fund competes.
Annual Financial Statements and Additional Information
22
The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund's fee rates relative to its Expense Peer Group. In this regard, the Board noted that the contractual advisory fee rate was above the median of the Expense Peer Group, but the Board noted the applicable waivers and reimbursements, and that the overall expense structure of the Fund remained competitive in the context of other factors considered by the Board.
The Board also received and considered information about the nature and extent of services offered and fees charged by Federated Hermes to other types of clients with investment strategies similar to those of the Federated Hermes Funds, including non-registered fund clients (such as institutional separate accounts) and third-party unaffiliated registered funds for which the Adviser or its affiliates serve as sub-adviser. The Board noted the CCO's statement that non-registered fund clients are inherently different products due to the following differences, among others: (i) types of targeted investors; (ii) applicable laws and regulations; (iii) legal structures; (iv) average account sizes; (v) portfolio management techniques made necessary by different cash flows and different associated costs; (vi) the time spent by portfolio managers and their teams (among other personnel across various departments, including legal, compliance and risk management) in reviewing securities pricing; (vii) SEC mandated risk management programs with respect to fund liquidity and use of derivatives; (viii) questions on regulatory reporting; (ix) a variety of different administrative responsibilities; and (x) degrees of risk associated with management. The Board also considered information regarding the differences in the nature of the services required for Federated Hermes to manage its proprietary registered fund business versus managing a discrete pool of assets as a sub-adviser to another institution's registered fund, noting the CCO's statement that Federated Hermes generally performs significant additional services and assumes substantially greater risks in managing the Fund and other Federated Hermes Funds than in its role as sub-adviser to an unaffiliated third-party registered fund. The Board noted that the CCO emphasized that differences in fees for providing advisory services to other types of clients may not be appropriate when judging the appropriateness of the Federated Hermes Funds' advisory fees because of the different services provided.
In the case of the Fund, the Board noted that Federated Hermes does not manage any other types of clients that are comparable to the Fund.
Based on these considerations, the Board concluded that the fees and total operating expenses of the Fund, in conjunction with other matters considered, are reasonable in light of the services provided.
Profitability
The Board received and considered profitability information furnished by Federated Hermes. Such profitability information included revenues reported on a fund-by-fund basis and estimates of the allocation of expenses made on a fund-by-fund basis, using allocation methodologies specified by the CCO and described to the Board. The Board considered the CCO's statement that, while the cost allocation report applies consistent allocation processes for purposes of general comparison of funds, the inherent difficulties in arbitrarily allocating costs lack precision and may cause the report to be unreliable because a single change in an allocation estimate can dramatically alter the resulting estimate of cost and/or profitability of a Federated Hermes Fund and may produce unintended consequences. In addition, the Board considered the CCO's statement that the allocation methodologies used by Federated Hermes in estimating profitability for purposes of reporting to the Board in connection with the continuation of the Contract are consistent with the methodologies previously reviewed by an independent consultant. The Board noted that the independent consultant had previously conducted a review of the allocation methodologies and reported to the Board that, although there is no single best method to allocate expenses, the methodologies used by Federated Hermes are reasonable. The Board considered the CCO's statement that the estimated profitability to the Adviser from its relationship with the Fund was not unreasonable in relation to the services provided.
The Board also reviewed information compiled by Federated Hermes comparing its profitability information to other publicly-held fund management companies, including information regarding profitability trends over time. The Board recognized that profitability comparisons among fund management companies are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund management company is affected by numerous factors. The Board considered the CCO's statement that, based on such profitability information, Federated Hermes' profit margins did not appear to be excessive and that Federated Hermes appeared financially sound, with the resources available to fulfill its contractual obligations.
Economies of Scale
The Board received and considered information about the notion of possible realization of "economies of scale" as a fund grows larger, the difficulties of isolating and quantifying economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. In this regard, the Board considered that Federated Hermes has made significant and long-term investments in areas that support all of the Federated Hermes Funds, such as: portfolio management, investment research and trading operations; shareholder services; compliance; business continuity, cybersecurity and information security programs; internal audit and risk management functions; and technology, systems capabilities and use of data. The Board noted that Federated Hermes' investments in these areas are extensive and are
Annual Financial Statements and Additional Information
23
designed to provide enhanced or expanded services to the Federated Hermes Funds and their shareholders. The Board considered that the benefits of these investments are likely to be shared with the family of Federated Hermes Funds as a whole. In addition, the Board considered that fee waivers and expense reimbursements are another means for potential economies of scale to be shared with shareholders and can provide protection from an increase in expenses if a Federated Hermes Fund's assets decline. The Board considered that, in order for the Federated Hermes Funds to remain competitive in the marketplace, Federated Hermes has frequently waived fees and/or reimbursed expenses for the Federated Hermes Funds and has disclosed to shareholders and/or reported to the Board its intention to do so (or continue to do so) in the future. The Board also considered that Federated Hermes has been active in managing expenses of the Federated Hermes Funds in recent years, which has resulted in benefits being realized by shareholders.
The Board also received and considered information on adviser-paid fees (commonly referred to as "revenue sharing" payments) that was provided to the Board throughout the year and in connection with the May Meetings. The Board considered that Federated Hermes believes that this information is relevant to consider whether Federated Hermes had an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, but should not be considered when evaluating the reasonableness of advisory fees. The Board also noted the absence of any applicable regulatory or industry guidelines on economies of scale, which is compounded by the lack of any uniform methodology or pattern with respect to structuring fund advisory fees with breakpoints that serve to reduce the fees as a fund attains a certain size.
Other Benefits
The Board considered information regarding the compensation and other ancillary (or "fall-out") benefits that Federated Hermes derived from its relationships with the Federated Hermes Funds. The Board considered that Federated Hermes may derive a benefit to its reputation as an adviser to the Fund, which may help in attracting other clients and investment personnel. The Board noted that, in addition to receiving advisory fees under the Federated Hermes Funds' investment advisory contracts, Federated Hermes' affiliates also receive fees for providing other services to the Federated Hermes Funds under separate service contracts, including for serving as the Federated Hermes Funds' administrator and distributor. In this regard, the Board considered that Federated Hermes' affiliates provide distribution and shareholder services to the Federated Hermes Funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The Board also received and considered information detailing the benefits, if any, that Federated Hermes may derive from its receipt of research services from brokers who execute portfolio trades for the Federated Hermes Funds.
Conclusions
The Board considered the CCO's presentation and statements and the information accompanying the CCO Management Fee Report. The Board recognized that its evaluation of the Federated Hermes Funds' advisory and sub-advisory arrangements is a continuing and ongoing process that is informed by the information that the Board requests and receives from management throughout the course of the year.
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Board, and the evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the continuation of the Contract. The Board based its determination to approve the Contract on the totality of the circumstances and relevant factors and with a view of past and future long-term considerations. Not all of the factors and considerations identified above were necessarily deemed to be relevant to the Fund, nor did the Board consider any one of them to be determinative.
Annual Financial Statements and Additional Information
24
Mutual funds are not bank deposits or obligations, are not guaranteed by any bank and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.
This information is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.
Federated Hermes International Equity Fund
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedHermes.com/us
or call 1-800-341-7400.
or call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 31423A713
CUSIP 31423A697
CUSIP 31423A689
CUSIP 31423A671
CUSIP 31423A697
CUSIP 31423A689
CUSIP 31423A671
Q454745 (7/26)
©2026 Federated Hermes, Inc.
Annual Financial Statements
and Additional Information
and Additional Information
May 31, 2026
|
Share Class | Ticker
|
Institutional | PIGDX
|
R6 | REIGX
|
|
|
Federated Hermes International Growth Fund
A Portfolio of Federated Hermes Adviser Series
Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee
CONTENTS
|
Portfolio of Investments
|
1
|
|
Financial Highlights
|
5
|
|
Statement of Assets and Liabilities
|
7
|
|
Statement of Operations
|
8
|
|
Statement of Changes in Net Assets
|
9
|
|
Notes to Financial Statements
|
10
|
|
Report of Independent Registered Public Accounting Firm
|
17
|
|
Evaluation and Approval of Advisory Contract
|
18
|
Portfolio of Investments
May 31, 2026
|
Shares
|
|
|
Value in
U.S. Dollars
|
|
|
|
COMMON STOCKS-97.6%
|
|
|
|
Argentina-2.3%
|
||
|
1,671
|
1
|
Mercadolibre, Inc.
|
$ 2,833,431
|
|
|
Australia-1.0%
|
||
|
93,304
|
|
Northern Star Resources Ltd.
|
1,280,866
|
|
|
Belgium-3.8%
|
||
|
3,463
|
1
|
Argenx SE, ADR
|
2,895,033
|
|
6,455
|
|
UCB SA
|
1,894,999
|
|
|
TOTAL
|
4,790,032
|
|
|
|
Brazil-3.6%
|
||
|
8,795
|
|
Embraer SA, ADR
|
507,912
|
|
102,990
|
|
Itau Unibanco Holding SA, ADR
|
811,561
|
|
238,285
|
1
|
NU Holdings Ltd./Cayman Islands
|
3,128,682
|
|
|
TOTAL
|
4,448,155
|
|
|
|
Canada-3.8%
|
||
|
21,384
|
|
Cameco Corp.
|
2,409,977
|
|
2,899
|
1
|
Celestica, Inc.
|
1,117,246
|
|
37,762
|
1
|
First Quantum Minerals Ltd.
|
1,162,455
|
|
|
TOTAL
|
4,689,678
|
|
|
|
Chile-1.8%
|
||
|
25,421
|
|
Antofagasta PLC
|
1,400,844
|
|
157,936
|
|
Embotelladora Andina S.A.
|
798,517
|
|
|
TOTAL
|
2,199,361
|
|
|
|
China-6.0%
|
||
|
8,142
|
|
Alibaba Group Holding Ltd., ADR
|
1,011,399
|
|
21,900
|
|
Contemporary Amperex Technology Co. Ltd.
|
1,372,193
|
|
185,200
|
|
KE Holdings, Inc.
|
1,018,378
|
|
91,000
|
1
|
Shanghai Biren Technology Co. Ltd.
|
723,066
|
|
45,444
|
|
Tencent Holdings Ltd.
|
2,474,261
|
|
220,000
|
|
Zijin Mining Group Co. Ltd.
|
924,564
|
|
|
TOTAL
|
7,523,861
|
|
|
|
Egypt-0.5%
|
||
|
239,451
|
|
Commercial International Bank Egypt
|
609,862
|
|
|
France-3.0%
|
||
|
5,794
|
|
Gaztransport Et Technigaz
|
1,338,793
|
|
984
|
|
L'Oreal SA
|
439,975
|
|
1,463
|
1
|
L'Oreal SA-PF
|
654,149
|
|
4,092
|
|
Schneider Electric SA
|
1,285,895
|
|
|
TOTAL
|
3,718,812
|
|
|
|
Georgia-0.2%
|
||
|
4,584
|
|
TBC Bank Group PLC
|
277,784
|
|
|
Germany-4.6%
|
||
|
28,983
|
|
Infineon Technologies AG
|
2,742,232
|
|
966
|
|
Rational AG
|
742,562
|
|
646
|
|
Rheinmetall AG
|
974,000
|
|
7,321
|
|
SAP SE, ADR
|
1,330,885
|
|
|
TOTAL
|
5,789,679
|
|
|
|
Hong Kong-0.7%
|
||
|
56,800
|
|
AIA Group Ltd.
|
596,867
|
Annual Financial Statements and Additional Information
1
|
Shares
|
|
|
Value in
U.S. Dollars
|
|
|
|
COMMON STOCKS-continued
|
|
|
|
Hong Kong-continued
|
||
|
19,733
|
1
|
Zijin Gold International Company Ltd.
|
$ 331,155
|
|
|
TOTAL
|
928,022
|
|
|
|
India-1.9%
|
||
|
56,658
|
|
Max Healthcare Institute Ltd.
|
574,609
|
|
66,488
|
1
|
PB Fintech Ltd.
|
1,188,646
|
|
104,687
|
1
|
Zinka Logistics Solutions Ltd.
|
562,872
|
|
|
TOTAL
|
2,326,127
|
|
|
|
Italy-0.8%
|
||
|
5,830
|
|
Prysmian SpA
|
990,762
|
|
|
Japan-13.1%
|
||
|
36,400
|
|
Ajinomoto Co., Inc.
|
1,177,660
|
|
40,800
|
|
Baudroie, Inc.
|
622,481
|
|
68,500
|
|
Hitachi Ltd.
|
2,218,754
|
|
8,641
|
|
Hoya Corp.
|
1,467,314
|
|
5,117
|
|
Keyence Corp.
|
2,570,753
|
|
33,800
|
|
Mitsubishi Heavy Industries Ltd.
|
807,799
|
|
84,625
|
2
|
Mitsubishi UFJ Financial Group, Inc., ADR
|
1,583,334
|
|
41,700
|
1
|
QPS Holdings, Inc.
|
1,065,289
|
|
203,500
|
|
Resona Holdings, Inc.
|
2,601,332
|
|
6,800
|
|
Tokyo Electron Ltd.
|
2,290,913
|
|
|
TOTAL
|
16,405,629
|
|
|
|
Netherlands-3.8%
|
||
|
2,926
|
|
ASML Holding N.V., ADR
|
4,718,936
|
|
|
Norway-1.3%
|
||
|
43,834
|
|
Kongsberg Gruppen ASA
|
1,576,961
|
|
|
Singapore-1.6%
|
||
|
23,500
|
|
DBS Group Holdings Ltd.
|
1,157,373
|
|
89,000
|
|
Singapore Technologies Engineering Ltd.
|
794,283
|
|
|
TOTAL
|
1,951,656
|
|
|
|
South Africa-2.4%
|
||
|
2,968
|
|
Capitec Bank Holdings Ltd.
|
814,907
|
|
54,482
|
|
Gold Fields Ltd.
|
2,140,432
|
|
|
TOTAL
|
2,955,339
|
|
|
|
South Korea-8.2%
|
||
|
1,457
|
|
Hanwha Aerospace Co. Ltd.
|
1,134,361
|
|
5,653
|
|
Korea Aerospace Industries Ltd.
|
631,717
|
|
2,378
|
|
Samsung Electro-Mechanics Co. Ltd.
|
3,379,466
|
|
21,217
|
|
Samsung Electronics Co. Ltd.
|
4,470,244
|
|
704
|
|
Samyang Foods Co. Ltd.
|
563,185
|
|
|
TOTAL
|
10,178,973
|
|
|
|
Spain-2.9%
|
||
|
145,558
|
|
CaixaBank SA
|
1,960,282
|
|
26,233
|
|
Industria de Diseno Textil SA
|
1,629,621
|
|
|
TOTAL
|
3,589,903
|
|
|
|
Sweden-4.3%
|
||
|
23,354
|
|
Epiroc AB
|
689,224
|
|
59,575
|
|
MilDef Group AB
|
1,199,773
|
|
3,148
|
1
|
Spotify Technology SA
|
1,566,697
|
|
40,919
|
1
|
Swedish Orphan Biovitrum AB
|
1,959,628
|
|
|
TOTAL
|
5,415,322
|
Annual Financial Statements and Additional Information
2
|
Shares
|
|
|
Value in
U.S. Dollars
|
|
|
|
COMMON STOCKS-continued
|
|
|
|
Switzerland-2.2%
|
||
|
2,994
|
|
Galderma Group AG
|
$ 636,811
|
|
4,017
|
|
Inficon Holding AG
|
838,125
|
|
6,454
|
|
Nestle S.A.
|
654,829
|
|
2,920
|
|
Sika AG
|
573,020
|
|
|
TOTAL
|
2,702,785
|
|
|
|
Taiwan-15.6%
|
||
|
66,000
|
|
Ase Technology Holding Co. Ltd.
|
1,268,704
|
|
6,788
|
|
ASPEED Technology, Inc.
|
4,093,519
|
|
14,000
|
|
MediaTek, Inc.
|
1,902,572
|
|
162,000
|
|
Taiwan Semiconductor Manufacturing Co. Ltd.
|
12,196,872
|
|
|
TOTAL
|
19,461,667
|
|
|
|
Thailand-1.0%
|
||
|
1,878
|
1
|
Fabrinet
|
1,228,512
|
|
|
Turkey-0.7%
|
||
|
112,017
|
|
Aselsan Elektronik Sanayi Ve Ticaret A.S.
|
928,136
|
|
|
United Arab Emirates-0.5%
|
||
|
415,019
|
|
ADNOC Drilling Co. PJSC
|
674,455
|
|
|
United Kingdom-6.0%
|
||
|
24,626
|
|
AstraZeneca PLC
|
4,572,309
|
|
38,396
|
|
Compass Group PLC
|
1,235,159
|
|
24,565
|
|
TechnipFMC PLC
|
1,680,737
|
|
|
TOTAL
|
7,488,205
|
|
|
|
TOTAL COMMON STOCKS
(IDENTIFIED COST $58,931,371)
|
121,682,911
|
|
|
|
INVESTMENT COMPANY-3.3%
|
||
|
4,081,615
|
|
Federated Hermes Government Obligations Fund, Premier Shares, 3.54%3
(IDENTIFIED COST $4,081,615)
|
4,081,615
|
|
|
TOTAL INVESTMENT IN SECURITIES-100.9%
(IDENTIFIED COST $63,012,986)4
|
125,764,526
|
|
|
|
OTHER ASSETS AND LIABILITIES - NET-(0.9%)5
|
(1,093,440)
|
|
|
|
NET ASSETS-100%
|
$124,671,086
|
Transactions with affiliated investment companies, which are funds managed by the Adviser or an affiliate of the Adviser, during the period ended May 31, 2026, were as follows:
|
|
Federated
Hermes Government
Obligations Fund,
Premier Shares*
|
|
Value as of 5/31/2025
|
$21,663,187
|
|
Purchases at Cost
|
$363,902,596
|
|
Proceeds from Sales
|
$(381,484,168)
|
|
Change in Unrealized Appreciation/Depreciation
|
$-
|
|
Net Realized Gain/(Loss)
|
$-
|
|
Value as of 5/31/2026
|
$4,081,615
|
|
Shares Held as of 5/31/2026
|
4,081,615
|
|
Dividend Income
|
$427,819
|
|
*
|
All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions.
|
|
1
|
Non-income-producing security.
|
|
2
|
All or a portion of this security is temporarily on loan to unaffiliated broker/dealers.
|
|
3
|
7-day net yield.
|
|
4
|
The cost of investments for federal tax purposes amounts to $63,121,597.
|
|
5
|
Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.
|
Annual Financial Statements and Additional Information
3
Note: The categories of investments are shown as a percentage of net assets at May 31, 2026.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1-quoted prices in active markets for identical securities.
Level 2-other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3-significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used, as of May 31, 2026, in valuing the Fund's assets carried at fair value:
|
Valuation Inputs
|
||||
|
|
Level 1-
Quoted
Prices
|
Level 2-
Other
Significant
Observable
Inputs
|
Level 3-
Significant
Unobservable
Inputs
|
Total
|
|
Equity Securities:
|
||||
|
Common Stocks
|
||||
|
International
|
$33,967,485
|
$87,715,426
|
$-
|
$121,682,911
|
|
Investment Company
|
4,081,615
|
-
|
-
|
4,081,615
|
|
TOTAL SECURITIES
|
$38,049,100
|
$87,715,426
|
$-
|
$125,764,526
|
|
The following acronym(s) are used throughout this portfolio:
|
|
|
|
ADR
|
-American Depositary Receipt
|
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
4
Financial Highlights-Institutional Shares
(For a Share Outstanding Throughout Each Period)
|
|
Year Ended May 31,
|
||||
|
|
2026
|
2025
|
2024
|
2023
|
2022
|
|
Net Asset Value, Beginning of Period
|
$16.07
|
$14.79
|
$13.19
|
$14.26
|
$18.70
|
|
Income From Investment Operations:
|
|||||
|
Net investment income1
|
0.05
|
0.07
|
0.07
|
0.13
|
0.08
|
|
Net realized and unrealized gain (loss)
|
1.57
|
1.49
|
1.70
|
(0.94)
|
(3.80)
|
|
TOTAL FROM INVESTMENT OPERATIONS
|
1.62
|
1.56
|
1.77
|
(0.81)
|
(3.72)
|
|
Less Distributions:
|
|||||
|
Distributions from net investment income
|
(0.65)
|
(0.24)
|
(0.17)
|
(0.15)
|
(0.05)
|
|
Distributions from net realized gain
|
(12.42)
|
(0.04)
|
-
|
(0.11)
|
(0.67)
|
|
TOTAL DISTRIBUTIONS
|
(13.07)
|
(0.28)
|
(0.17)
|
(0.26)
|
(0.72)
|
|
Net Asset Value, End of Period
|
$4.62
|
$16.07
|
$14.79
|
$13.19
|
$14.26
|
|
Total Return2
|
25.83%
|
10.78%
|
13.56%
|
(5.64)%
|
(20.70)%
|
|
Ratios to Average Net Assets:
|
|||||
|
Net expenses3
|
0.84%4
|
0.84%4
|
0.84%4
|
0.84%
|
0.84%
|
|
Net investment income
|
0.48%
|
0.47%
|
0.53%
|
1.00%
|
0.47%
|
|
Expense waiver/reimbursement5
|
0.24%
|
0.09%
|
0.08%
|
0.07%
|
0.09%
|
|
Supplemental Data:
|
|||||
|
Net assets, end of period (000 omitted)
|
$124,157
|
$524,470
|
$699,137
|
$714,886
|
$749,120
|
|
Portfolio turnover6
|
30%
|
30%
|
37%
|
46%
|
47%
|
|
1
|
Per share numbers have been calculated using the average shares method.
|
|
2
|
Based on net asset value.
|
|
3
|
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
|
|
4
|
The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.84%, 0.84% and 0.84% for the years
ended May 31, 2026, 2025 and 2024, respectively, after taking into account these expense reductions.
|
|
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.
|
|
6
|
Securities that mature are considered sales for purposes of this calculation.
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
5
Financial Highlights-Class R6 Shares
(For a Share Outstanding Throughout Each Period)
|
|
Year Ended May 31,
|
Period
Ended
5/31/20221
|
|||
|
|
2026
|
2025
|
2024
|
2023
|
|
|
Net Asset Value, Beginning of Period
|
$16.15
|
$14.80
|
$13.20
|
$14.26
|
$20.05
|
|
Income From Investment Operations:
|
|||||
|
Net investment income2
|
0.06
|
0.08
|
0.07
|
0.12
|
0.12
|
|
Net realized and unrealized gain (loss)
|
1.51
|
1.55
|
1.70
|
(0.92)
|
(5.19)
|
|
TOTAL FROM INVESTMENT OPERATIONS
|
1.57
|
1.63
|
1.77
|
(0.80)
|
(5.07)
|
|
Less Distributions:
|
|||||
|
Distributions from net investment income
|
(0.65)
|
(0.24)
|
(0.17)
|
(0.15)
|
(0.05)
|
|
Distributions from net realized gain
|
(12.42)
|
(0.04)
|
-
|
(0.11)
|
(0.67)
|
|
TOTAL DISTRIBUTIONS
|
(13.07)
|
(0.28)
|
(0.17)
|
(0.26)
|
(0.72)
|
|
Net Asset Value, End of Period
|
$4.65
|
$16.15
|
$14.80
|
$13.20
|
$14.26
|
|
Total Return3
|
25.53%
|
11.25%
|
13.55%
|
(5.57)%
|
(26.04)%
|
|
Ratios to Average Net Assets:
|
|||||
|
Net expenses4
|
0.83%5
|
0.83%5
|
0.83%5
|
0.83%
|
0.83%6
|
|
Net investment income
|
0.73%
|
0.56%
|
0.53%
|
0.95%
|
0.92%6
|
|
Expense waiver/reimbursement7
|
0.26%
|
0.09%
|
0.08%
|
0.06%
|
0.12%6
|
|
Supplemental Data:
|
|||||
|
Net assets, end of period (000 omitted)
|
$514
|
$552
|
$619
|
$619
|
$279
|
|
Portfolio turnover8
|
30%
|
30%
|
37%
|
46%
|
47%9
|
|
1
|
Reflects operations for the period from August 26, 2021 (commencement of operations) to May 31, 2022.
|
|
2
|
Per share numbers have been calculated using the average shares method.
|
|
3
|
Based on net asset value. Total returns for periods of less than one year are not annualized.
|
|
4
|
Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
|
|
5
|
The net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.83%, 0.83% and 0.83% for the years
ended May 31, 2026, 2025 and 2024, respectively, after taking into account these expense reductions.
|
|
6
|
Computed on an annualized basis.
|
|
7
|
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.
|
|
8
|
Securities that mature are considered sales for purposes of this calculation.
|
|
9
|
Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the fiscal year ended May 31, 2022.
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
6
Statement of Assets and Liabilities
May 31, 2026
|
Assets:
|
|
|
Investment in securities, at value including $1,272,966 of securities loaned and including $4,081,615 of investment in affiliated
holdings* (identified cost $63,012,986, including $4,081,615 of identified cost in affiliated holdings)
|
$125,764,526
|
|
Cash
|
11,582
|
|
Income receivable
|
946,950
|
|
Due from custodian
|
38,619
|
|
Receivable for shares sold
|
7,409
|
|
Total Assets
|
126,769,086
|
|
Liabilities:
|
|
|
Payable for collateral due to broker for securities lending (Note 2)
|
$1,302,051
|
|
Payable for investments purchased
|
619,964
|
|
Payable for capital gains taxes
|
52,357
|
|
Payable for custodian fees
|
35,726
|
|
Payable for investment adviser fee (Note 5)
|
3,805
|
|
Payable for administrative fee (Note 5)
|
889
|
|
Payable for shares redeemed
|
324
|
|
Accrued expenses (Note 5)
|
82,884
|
|
TOTAL LIABILITIES
|
2,098,000
|
|
Net assets for 26,975,046 shares outstanding
|
$124,671,086
|
|
Net Assets Consist of:
|
|
|
Paid-in capital
|
$43,872,283
|
|
Total distributable earnings (loss)
|
80,798,803
|
|
NET ASSETS
|
$124,671,086
|
|
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
|
|
|
Institutional Shares:
|
|
|
Net asset value per share ($124,156,869 ÷ 26,864,378 shares outstanding) no par value, unlimited shares authorized
|
$4.62
|
|
Class R6 Shares:
|
|
|
Net asset value per share ($514,217 ÷ 110,668 shares outstanding) no par value, unlimited shares authorized
|
$4.65
|
|
*
|
See information listed after the Fund's Portfolio of Investments.
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
7
Statement of Operations
Year Ended May 31, 2026
|
Investment Income:
|
|
|
Dividends (including $254,811 received from affiliated holdings* and net of foreign taxes withheld of $197,331)
|
$2,967,411
|
|
Net income on securities loaned (includes $173,008 earned from an affiliated holding* related to cash collateral balances) (Note 2)
|
42,870
|
|
TOTAL INCOME
|
3,010,281
|
|
Expenses:
|
|
|
Investment adviser fee (Note 5)
|
$1,709,776
|
|
Administrative fee (Note 5)
|
177,707
|
|
Custodian fees
|
197,132
|
|
Transfer agent fees (Note 2)
|
69,465
|
|
Directors'/Trustees' fees (Note 5)
|
2,549
|
|
Auditing fees
|
39,612
|
|
Legal fees
|
11,230
|
|
Portfolio accounting fees
|
141,624
|
|
Share registration costs
|
48,944
|
|
Printing and postage
|
40,548
|
|
Miscellaneous (Note 5)
|
36,666
|
|
TOTAL EXPENSES
|
2,475,253
|
|
Waiver, Reimbursement and Reduction:
|
|
|
Waiver/reimbursement of investment adviser fee (Note 5)
|
(520,634)
|
|
Reimbursement of other operating expenses (Notes 2 and 5)
|
(28,580)
|
|
Reduction of custodian fees (Note 6)
|
(620)
|
|
TOTAL WAIVER, REIMBURSEMENT AND REDUCTION
|
(549,834)
|
|
Net expenses
|
1,925,419
|
|
Net investment income
|
1,084,862
|
|
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions:
|
|
|
Net realized gain on investments (including foreign taxes withheld of $731,162) and foreign currency transactions
|
163,170,265
|
|
Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency (including decrease in
payable for capital gains taxes of $550,734)
|
(115,303,332)
|
|
Net realized and unrealized gain (loss) on investments and foreign currency transactions
|
47,866,933
|
|
Change in net assets resulting from operations
|
$48,951,795
|
|
*
|
See information listed after the Fund's Portfolio of Investments.
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
8
Statement of Changes in Net Assets
|
Year Ended May 31
|
2026
|
2025
|
|
Increase (Decrease) in Net Assets
|
||
|
Operations:
|
||
|
Net investment income
|
$1,084,862
|
$2,684,877
|
|
Net realized gain
|
163,170,265
|
97,867,171
|
|
Net change in unrealized appreciation/depreciation
|
(115,303,332)
|
(46,957,760)
|
|
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
|
48,951,795
|
53,594,288
|
|
Distributions to Shareholders:
|
||
|
Institutional Shares
|
(120,420,292)
|
(9,898,825)
|
|
Class R6 Shares
|
(337,818)
|
(7,202)
|
|
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS
|
(120,758,110)
|
(9,906,027)
|
|
Share Transactions:
|
||
|
Proceeds from sale of shares
|
24,225,403
|
40,452,177
|
|
Net asset value of shares issued to shareholders in payment of distributions declared
|
120,207,898
|
9,458,213
|
|
Cost of shares redeemed
|
(472,978,107)
|
(268,332,240)
|
|
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS
|
(328,544,806)
|
(218,421,850)
|
|
Change in net assets
|
(400,351,121)
|
(174,733,589)
|
|
Net Assets:
|
||
|
Beginning of period
|
525,022,207
|
699,755,796
|
|
End of period
|
$124,671,086
|
$525,022,207
|
See Notes which are an integral part of the Financial Statements
Annual Financial Statements and Additional Information
9
Notes to Financial Statements
May 31, 2026
1. ORGANIZATION
Federated Hermes Adviser Series (the "Trust") was established as a Delaware statutory trust on July 18, 2017 and is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of 10 portfolios. The financial statements included herein are only those of Federated Hermes International Growth Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers two classes of shares: Institutional Shares and Class R6 Shares. The Fund's Class A Shares and Class C Shares are effective with the Securities and Exchange Commission (SEC), but are not yet offered for sale. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide long-term capital appreciation.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
■
Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
■
Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.
■
Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and ask quotations.
■
Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by Federated Global Investment Management Corp. (the "Adviser").
■
For securities that are fair valued in accordance with procedures established by and under the general supervision of the Adviser, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer's financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.
If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Adviser's valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion of the Adviser's valuation committee ("Valuation Committee"), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.
Fair Valuation and Significant Events Procedures
Pursuant to Rule 2a-5 under the Act, the Fund's Board of Trustees (the "Trustees") has designated the Adviser as the Fund's valuation designee to perform any fair value determinations for securities and other assets held by the Fund. The Adviser is subject to the Trustees' oversight and certain reporting and other requirements intended to provide the Trustees the information needed to oversee the Adviser's fair value determinations.
The Adviser, acting through its Valuation Committee, is responsible for determining the fair value of investments for which market quotations are not readily available. The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser's affiliated companies and determines fair value and oversees the calculation of the NAV. The Valuation Committee is also authorized to use pricing services to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-partypricing services' policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Adviser. The Trustees periodically review the fair valuations made by the Valuation Committee. The Trustees have also approved the Adviser's fair valuation and significant events procedures as part of the Fund's compliance program and will review any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between
Annual Financial Statements and Additional Information
10
the prices bid and ask for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-incomesecurities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Adviser.
The Adviser has also adopted procedures requiring an investment to be priced at its fair value whenever the Valuation Committee determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
■
With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;
■
Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;
■
Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.
The Adviser has adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Valuation Committee will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Adviser. The Trustees periodically review fair valuations made in response to significant events.
Repurchase Agreements
The Fund may invest in repurchase agreements for short-term liquidity purposes. It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. Certain repurchase agreements may be structured as loans secured by a security interest or lien on the eligible securities. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.
The insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.
The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.
Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income and capital gains, if any, are declared and paid at least annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses. The detail of the total fund expense waiver, reimbursement and reduction of $549,834 is disclosed in this Note 2, Note 5 and Note 6.
Transfer Agent Fees
For the year ended May 31, 2026, transfer agent fees for the Fund were as follows:
|
|
Transfer Agent
Fees Incurred
|
Transfer Agent
Fees Reimbursed
|
|
Institutional Shares
|
$69,428
|
$(28,580)
|
|
Class R6 Shares
|
37
|
-
|
|
TOTAL
|
$69,465
|
$(28,580)
|
Annual Financial Statements and Additional Information
11
Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund's Institutional Shares to unaffiliated financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees. For the year ended May 31, 2026, the Fund did not incur any service fees.
Federal Taxes
It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986 (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the year ended May 31, 2026, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of May 31, 2026, tax years 2023 through 2026 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the State of Delaware.
The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or gains are earned.
When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Foreign Currency Translation
The accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the rates of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at period end, resulting from changes in the exchange rate.
Restricted Securities
The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities, like other securities, are priced in accordance with procedures established by and under the general supervision of the Adviser.
Securities Lending
The Fund participates in a securities lending program providing for the lending of equity securities to qualified brokers. The term of the loans within the program is one year or less. The Fund receives cash collateral for securities loaned, which generally is invested in an affiliated money market fund. Collateral is maintained at a minimum level of 100% of the market value of investments loaned, plus interest, if applicable. In accordance with the Fund's securities lending agreement, the market value of securities on loan is determined each day at the close of business and any additional collateral required to cover the value of securities on loan is delivered to the Fund on the next business day. Earnings from collateral invested in affiliated holdings as presented parenthetically on the Statement of Operations do not reflect fees and rebates and are allocated between the borrower of the security, the securities lending agent, as a fee for its services under the program and the Fund, according to agreed-upon rates. The Fund will not have the right to vote on securities while they are on loan. However, the Fund will attempt to terminate a loan in an effort to reacquire the securities in time to vote on matters that are deemed to be material by the Adviser. There can be no assurance that the Fund will have sufficient notice of such matters to be able to terminate the loan in time to vote thereon.
Securities lending transactions are subject to Master Netting Agreements which are agreements between the Fund and its counterparties that provide for the net settlement of all transactions and collateral with the Fund, through a single payment, in the event of default or termination. Amounts presented on the Portfolio of Investments and Statement of Assets and Liabilities are not net settlement amounts but gross. As indicated below, the cash collateral received by the Fund exceeds the market value of the securities loaned, reducing the net settlement amount to zero. Additionally, the securities lending agreement executed by the Fund includes an indemnification clause. This clause stipulates that the borrower will reimburse the Fund for any losses as a result of any failure of the borrower to return equivalent securities to the Fund.
Annual Financial Statements and Additional Information
12
As of May 31, 2026, securities subject to this type of arrangement and related collateral were as follows:
|
Fair Value of
Securities Loaned
|
Collateral
Received
|
|
$1,272,966
|
$1,302,051
|
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ materially from those estimated. The Fund applies investment company accounting and reporting guidance.
3. SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
|
|
Year Ended
5/31/2026
|
Year Ended
5/31/2025
|
||
|
Institutional Shares:
|
Shares
|
Amount
|
Shares
|
Amount
|
|
Shares sold
|
1,838,083
|
$24,119,014
|
2,562,730
|
$40,319,689
|
|
Shares issued to shareholders in payment of distributions declared
|
31,000,726
|
119,972,810
|
661,989
|
9,453,207
|
|
Shares redeemed
|
(38,619,008)
|
(472,833,004)
|
(17,851,365)
|
(268,076,520)
|
|
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS
|
(5,780,199)
|
$(328,741,180)
|
(14,626,646)
|
$(218,303,624)
|
|
|
Year Ended
5/31/2026
|
Year Ended
5/31/2025
|
||
|
Class R6 Shares:
|
Shares
|
Amount
|
Shares
|
Amount
|
|
Shares sold
|
24,499
|
$106,389
|
8,778
|
$132,488
|
|
Shares issued to shareholders in payment of distributions declared
|
60,434
|
235,088
|
350
|
5,006
|
|
Shares redeemed
|
(8,438)
|
(145,103)
|
(16,761)
|
(255,720)
|
|
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS
|
76,495
|
$196,374
|
(7,633)
|
$(118,226)
|
|
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS
|
(5,703,704)
|
$(328,544,806)
|
(14,634,279)
|
$(218,421,850)
|
4. FEDERAL TAX INFORMATION
The accounting treatment of certain items in accordance with income tax regulations may differ from the accounting treatment in accordance with GAAP which may result in permanent differences. In the case of the Fund, such differences primarily result from net operating loss, prior year tax-return true-up adjustment and equalization.
For the year ended May 31, 2026, permanent differences identified and reclassified among the components of net assets were as follows:
|
Increase (Decrease)
|
|
|
Paid-in Capital
|
Total Distributable
Earnings (Loss)
|
|
$69,085,520
|
$(69,085,520)
|
The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended May 31, 2026 and 2025, was as follows:
|
|
2026
|
2025
|
|
Ordinary income
|
$5,967,254
|
$8,546,643
|
|
Long-term capital gains
|
$114,790,856
|
$1,359,384
|
|
TOTAL
|
$120,758,110
|
$9,906,027
|
As of May 31, 2026, the components of distributable earnings on a tax-basis were as follows:
|
Undistributed long-term capital gains
|
$21,044,426
|
|
Net unrealized appreciation
|
$62,642,929
|
|
Other temporary differences
|
$(15,907)
|
|
Capital loss deferral
|
$(2,872,645)
|
|
TOTAL
|
$80,798,803
|
Annual Financial Statements and Additional Information
13
At May 31, 2026, the cost of investments for federal tax purposes was $63,121,597. The net unrealized appreciation of investments for federal tax purposes was $62,642,929. This consists of unrealized appreciation from investments for those securities having an excess of value over cost of $63,601,515 and unrealized depreciation from investments for those securities having an excess of cost over value of $958,586. The difference between book-basis and tax-basis net unrealized appreciation is attributable to the deferral of losses on wash sales.
Under current tax rules, capital losses on securities transactions realized after October 31 may be deferred, in whole or in part, and treated as occurring on the first day of the following fiscal year. As of May 31, 2026, for federal income tax purposes, a post-October loss of $2,872,645 was deferred to June 1, 2026.
5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.75% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund for competitive reasons such as to maintain the Fund's expense ratio, or as and when appropriate, to maintain positive or zero net yields. For the year ended May 31, 2026, the Adviser voluntarily waived $520,484 of its fee.
The Adviser has agreed to reimburse the Fund's investment adviser fees with respect to the proportionate share of all expenses applicable to the amount of new assets invested in other affiliated investment companies. For the year ended May 31, 2026, the Adviser reimbursed $150.
Administrative Fee
Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, "Investment Complex" is defined as all of the Federated Hermes Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:
|
Administrative Fee
|
Average Daily Net Assets
of the Investment Complex
|
|
0.100%
|
on assets up to $50 billion
|
|
0.075%
|
on assets over $50 billion
|
Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the year ended May 31, 2026, the annualized fee paid to FAS was 0.078% of average daily net assets of the Fund.
In addition, FAS may charge certain out-of-pocket expenses to the Fund.
Expense Limitation
The Adviser and certain of its affiliates (which may include, FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Effective August 1, 2026, total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, tax reclaim recovery fees, proxy-related expenses and extraordinary expenses, if any) paid by the Fund's Institutional Shares and Class R6 Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.85% and 0.84% (the "Fee Limit"), respectively, up to but not including the later of (the "Termination Date"): (a) August 1, 2027; or (b) the date of the Fund's next effective Prospectus. Prior to August 1, 2026, the Fee Limit for the Fund's Institutional Shares and Class R6 Shares was 0.84% and 0.83%, respectively. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the approval of the Trustees.
Interfund Transactions
During the year ended May 31, 2026, the Fund engaged in sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Trustees and/or common Officers. These sale transactions complied with Rule 17a-7 under the Act and amounted to $83,459. Net realized gain (loss) recognized on these transactions was $28,532.
Directors'/Trustees' and Miscellaneous Fees
Certain Officers and Directors of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Independent Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
Affiliated Shares of Beneficial Interest
As of May 31, 2026, a majority of the shares of beneficial interest outstanding are owned by an affiliate of the Adviser.
6. EXPENSE REDUCTION
Through arrangements with the Fund's custodian, net credits realized as a result of uninvested cash balances were used to offset custody expenses. For the year ended May 31, 2026, the Fund's expenses were offset by $620 under these arrangements.
Annual Financial Statements and Additional Information
14
7. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended May 31, 2026, were as follows:
|
Purchases
|
$68,896,489
|
|
Sales
|
$479,381,269
|
8. CONCENTRATION OF RISK
The Fund invests in securities of non-U.S. issuers. Political or economic developments may have an effect on the liquidity and volatility of portfolio securities and currency holdings.
The Fund may invest a portion of its assets in securities of companies that are deemed by the Fund's management to be classified in similar business sectors. Economic developments may have an effect on the liquidity and volatility of the portfolio securities. A substantial portion of the Fund's portfolio may be comprised of entities in the Information Technology sector. As a result, the Fund may be more susceptible to any economic, business, political or other developments which generally affect these entities.
9. LINE OF CREDIT
The Fund participates with certain other Federated Hermes Funds, on a several basis, in an up to $500,000,000 unsecured, 364-day, committed, revolving line of credit (LOC) agreement dated June 17, 2025, which was renewed on June 16, 2026 for an amount up to $400,000,000. The LOC was made available to temporarily finance the repurchase or redemption of shares of the Fund, failed trades, payment of dividends, settlement of trades and for other short-term, temporary or emergency general business purposes. The Fund cannot borrow under the LOC if an inter-fund loan is outstanding. The Fund's ability to borrow under the LOC also is subject to the limitations of the Act and various conditions precedent that must be satisfied before the Fund can borrow. Loans under the LOC are charged interest at a fluctuating rate per annum equal to (a) the highest, on any day, of (i) the federal funds effective rate, (ii) the published secured overnight financing rate plus an assigned percentage, and (iii) 0.0%, plus (b) a margin. Any fund eligible to borrow under the LOC pays its pro rata share of a commitment fee based on the amount of the lenders' commitment that has not been utilized, quarterly in arrears and at maturity. As of May 31, 2026, the Fund had no outstanding loans. During the year ended May 31, 2026, the Fund did not utilize the LOC.
10. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other funds advised by subsidiaries of Federated Hermes, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of May 31, 2026, there were no outstanding loans. During the year ended May 31, 2026, the program was not utilized.
11. OPERATING SEGMENTS
An operating segment is defined as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity's chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. A management committee of the Adviser acts as the CODM. The Fund represents a single operating segment, as the CODM monitors the operating results of the Fund as a whole and the strategic asset allocation is determined based on the investment objective of the Fund and executed by the Fund's portfolio management team. The financial information in the form of the Fund's portfolio composition, total returns, expense ratios and changes in net assets (i.e., changes in net assets resulting from operations, subscriptions and redemptions) which is reviewed by the CODM to assess the Fund's performance in comparison to the Fund's benchmarks and to make resource allocation decisions for the Fund's single segment is consistent with the information presented in these financial statements. Segment assets are reflected on the accompanying Statement of Assets and Liabilities as "total assets" and significant segment expenses are listed on the accompanying Statement of Operations.
12. INDEMNIFICATIONS
Under the Fund's organizational documents, its Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund (other than liabilities arising out of their willful misfeasance, bad faith, gross negligence or reckless disregard of their duties to the Fund). In addition, in the normal course of business, the Fund provides certain indemnifications under arrangements with third parties. Typically, obligations to indemnify a third party arise in the context of an arrangement entered into by the Fund under which the Fund agrees to indemnify such third party for certain liabilities arising out of actions taken pursuant to the arrangement, provided the third party's actions are not deemed to have breached an agreed-upon standard of care (such as willful misfeasance, bad faith, gross negligence or reckless disregard of their duties under the contract). The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet arisen. The Fund does not anticipate any material claims or losses pursuant to these arrangements at this time, and accordingly expects the risk of loss to be remote.
Annual Financial Statements and Additional Information
15
13. FEDERAL TAX INFORMATION (UNAUDITED)
For the year ended May 31, 2026, 50.1% of total ordinary income distributions paid by the Fund are qualifying dividends which may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Act of 2003. For the year ended May 31, 2026, 3.2% of total ordinary income distributions qualified as business interest income for purposes of 163(j) and the regulations thereunder. Complete information is reported in conjunction with the reporting of distributions on Form 1099-DIV.
For the year ended May 31, 2026, the amount of long-term capital gains designated by the Fund was $179,533,507.
Annual Financial Statements and Additional Information
16
Report of Independent Registered Public Accounting Firm
To the Shareholders of Federated Hermes International Growth Fund and the board of trustees of federated Hermes Adviser Series:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Federated Hermes International Growth Fund (the Fund), a portfolio of Federated Hermes Adviser Series, including the portfolio of investments, as of May 31, 2026, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of May 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of May 31, 2026, by correspondence with the custodian, transfer agent of the underlying fund, and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor for one or more Federated Hermes' investment companies since 2006.
Boston, Massachusetts
July 24, 2026
July 24, 2026
Annual Financial Statements and Additional Information
17
Evaluation and Approval of Advisory Contract-May 2026
Federated Hermes International Growth Fund (the "Fund")
At its meetings in May 2026 (the "May Meetings"), the Fund's Board of Trustees (the "Board"), including those Trustees who are not "interested persons" of the Fund, as defined in the Investment Company Act of 1940, as amended (the "Independent Trustees"), reviewed and unanimously approved the continuation of the investment advisory contract between the Fund and Federated Global Investment Management Corp. (the "Adviser") (the "Contract") for an additional one-year term. The Board's determination to approve the continuation of the Contract reflects the exercise of its business judgment after considering such information deemed necessary to evaluate the terms of the Contract and to approve the continuation of the existing arrangement. The information, factors and conclusions that formed the basis for the Board's approval are summarized below.
Information Received and Review Process
At the request of the Independent Trustees, the Fund's Chief Compliance Officer (the "CCO") furnished to the Board in advance of its May Meetings an independent written report regarding data related to the Fund's management fee (the "CCO Management Fee Report"). The Board considered the CCO Management Fee Report, along with other information, in evaluating the reasonableness of the Fund's management fee and in determining to approve the continuation of the Contract.
In addition to the CCO Management Fee Report, the Board considered information specifically prepared in connection with the approval of the continuation of the Contract that was presented at the May Meetings. In this regard, in the months preceding the May Meetings, the Board requested and reviewed written responses and supporting materials prepared by the Adviser and its affiliates (collectively, "Federated Hermes") in response to requests posed to Federated Hermes by independent legal counsel on behalf of the Independent Trustees encompassing a wide variety of topics, including those summarized below. The Board also considered such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the Contract, which included detailed information about the Fund and Federated Hermes furnished to the Board at its meetings throughout the year.
The Board's consideration of the Contract included review of materials and information covering the following matters, among others: (1) a copy of the Contract; (2) the nature, quality and extent of the advisory and other services provided to the Fund by Federated Hermes; (3) Federated Hermes' business and operations; (4) the Adviser's investment philosophy, personnel and processes; (5) the Fund's investment objective and strategies; (6) the Fund's short-term and long-term performance - in absolute terms (both on a gross basis and net of expenses) and relative to an appropriate group of peer funds and its benchmark; (7) the Fund's fees and expenses, including the advisory fee and the overall expense structure of the Fund - in absolute terms and relative to an appropriate group of peer funds, with due regard for contractual or voluntary expense limitations (if any); (8) the financial condition of Federated Hermes; (9) the Adviser's profitability with respect to managing the Fund; (10) distribution and sales activity for the Fund; and (11) the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any).
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees charged to other registered funds in evaluating the Contract. Using these judicial decisions as a guide, the Board considered several factors it deemed relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund, including: (1) the nature and quality of the services provided by the adviser to the fund and its shareholders, including the performance of the fund, its benchmark and comparable funds; (2) the adviser's cost of providing the services and the profitability to the adviser of providing advisory services to the fund; (3) the extent to which the adviser may realize "economies of scale" as the fund grows larger and, if such economies of scale exist, whether they have been appropriately shared with the fund and its shareholders or the family of funds; (4) any "fall-out" benefits that accrue to the adviser because of its relationship with the fund, including research services received from brokers that execute fund trades and any fees paid to affiliates of the adviser for services rendered to the fund; (5) comparative fees and expenses, including a comparison of management fees paid to the adviser with those paid by similar funds managed by the same adviser or other advisers as well as management fees charged to institutional and other advisory clients of the same adviser for what might be viewed as like services; and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise, including whether they are fully informed about all facts the board deems relevant to its consideration of the adviser's services and fees. The Board considered that the Securities and Exchange Commission ("SEC") disclosure requirements regarding the basis for a fund board's approval of the fund's investment advisory contract generally align with the factors listed above. The Board was guided by these factors in its evaluation of the Contract to the extent it considered them to be appropriate and relevant, as discussed further below. The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated Hermes on matters relating to the oversight of the other funds advised by Federated Hermes (each, a "Federated Hermes Fund" and, collectively, the "Federated Hermes Funds").
Annual Financial Statements and Additional Information
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In addition, the Board considered the preferences and expectations of Fund shareholders and the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew the Contract. In particular, the Board recognized that many shareholders likely have invested in the Fund based on the strength of Federated Hermes' industry standing and reputation and with the expectation that Federated Hermes will have a continuing role in providing advisory services to the Fund. Thus, the Board observed that there are a range of investment options available to the Fund's shareholders in the marketplace, and such shareholders, having had the opportunity to consider other investment options, have effectively selected Federated Hermes by virtue of investing in the Fund.
In determining to approve the continuation of the Contract, the members of the Board reviewed and evaluated information and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment. While individual members of the Board may have weighed certain factors differently, the Board's determination to approve the continuation of the Contract was based on a comprehensive consideration of all information provided to the Board throughout the year. The Board recognized that its evaluation process is evolutionary and that the factors considered and the emphasis placed on relevant factors may change in recognition of changing circumstances in the registered fund marketplace. The Independent Trustees were assisted throughout the evaluation process by independent legal counsel. In connection with their deliberations at the May Meetings, the Independent Trustees met separately in executive session with their independent legal counsel and without management present to review the relevant materials and consider their responsibilities under applicable laws. In addition, senior management representatives of Federated Hermes also met with the Independent Trustees and their independent legal counsel to discuss the materials and presentations furnished to the Board at the May Meetings. The Board considered the approval of the Contract for the Fund as part of its consideration of agreements for funds across the family of Federated Hermes Funds, but its approvals were made on a fund-by-fund basis.
Nature, Extent and Quality of Services
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of Federated Hermes dedicated to the Fund. In this regard, the Board evaluated, among other things, the terms of the Contract and the full range of services provided to the Fund by Federated Hermes. The Board considered the Adviser's personnel, investment philosophy and process, investment research capabilities and resources, trade operations capabilities, experience and performance track record. The Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and evaluated Federated Hermes' ability and experience in attracting and retaining qualified personnel to service the Fund. The Board considered the trading operations by the Adviser, including the execution of portfolio transactions and the selection of brokers for those transactions. The Board also considered the Adviser's ability to deliver competitive investment performance for the Fund when compared to the Fund's Performance Peer Group (as defined below).
In addition, the Board considered the financial resources and overall reputation of Federated Hermes and its willingness to consider and make investments in personnel, infrastructure, technology, cybersecurity, business continuity planning and operational enhancements that are designed to benefit the Federated Hermes Funds. The Board considered Federated Hermes' oversight of the securities lending program for the Federated Hermes Funds that engage in securities lending and noted the income earned by the Federated Hermes Funds that participate in such program. In addition, the Board considered the quality of Federated Hermes' communications with the Board and responsiveness to Board inquiries and requests made from time to time with respect to the Federated Hermes Funds. The Board also considered that Federated Hermes is responsible for providing the Federated Hermes Funds' officers.
The Board received and evaluated information regarding Federated Hermes' regulatory and compliance environment. The Board considered Federated Hermes' compliance program and compliance history and reports from the CCO about Federated Hermes' compliance with applicable laws and regulations, including responses to regulatory developments and any compliance or other issues raised by regulatory agencies. The Board also noted Federated Hermes' support of the Federated Hermes Funds' compliance control structure and the compliance-related resources devoted by Federated Hermes in support of the Fund's obligations pursuant to Rule 38a-1 under the Investment Company Act of 1940, as amended, including Federated Hermes' commitment to respond to rulemaking and other regulatory initiatives of the SEC. The Board considered Federated Hermes' approach to internal audits and risk management with respect to the Federated Hermes Funds and its day-to-day oversight of the Federated Hermes Funds' compliance with their investment objectives and policies as well as with applicable laws and regulations, noting that regulatory and other developments had over time led, and continue to lead, to an increase in the scope of Federated Hermes' oversight in this regard. In addition, the Board noted Federated Hermes' commitment to maintaining high quality systems and expending substantial resources to prepare for and respond to ongoing changes due to the market, regulatory and control environments in which the Fund and its service providers operate.
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19
The Board considered Federated Hermes' efforts to provide shareholders in the Federated Hermes Funds with a comprehensive array of funds with different investment objectives, policies and strategies. The Board considered the expenses that Federated Hermes had incurred, as well as the entrepreneurial and other risks assumed by Federated Hermes, in sponsoring and providing on-going services to new funds to expand these opportunities for shareholders. The Board noted the benefits to shareholders of being part of the family of Federated Hermes Funds, which include the general right to exchange investments between the same class of shares without the incurrence of additional sales charges.
Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided by the Adviser to the Fund.
Fund Investment Performance
The Board considered the investment performance of the Fund. In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks. The Board considered detailed investment reports on, and the Adviser's analysis of, the Fund's performance over different time periods that were provided to the Board throughout the year and in connection with the May Meetings. These reports included, among other items, information on the Fund's gross and net returns, the Fund's investment performance compared to one or more relevant categories or groups of peer funds and the Fund's benchmark, performance attribution information and commentary on the effect of market conditions. The Board noted that it evaluated investment performance at meetings throughout the year and received reports from Federated Hermes regarding the performance of certain Federated Hermes Funds as well as Federated Hermes' explanations for less favorable performance and any specific actions Federated Hermes had taken, or had determined to take, to seek to enhance Fund investment performance and the results of those actions.
The Board also reviewed comparative information regarding the performance of other registered funds in the category of peer funds selected by Morningstar, Inc. ("Morningstar"), an independent fund ranking organization (the "Performance Peer Group"). The Board noted the CCO's statement that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund.
The Board also considered comparative performance data from Lipper, Inc. that was included in reports provided to the Board throughout the year.
For the periods ended December 31, 2025, the Fund's performance fell below the Performance Peer Group median for the three-year and five-year periods, and was above the Performance Peer Group median for the one-year period. The Board discussed the Fund's performance with the Adviser and recognized the efforts being taken by the Adviser in the context of other factors considered relevant by the Board.
Based on these considerations, the Board concluded that it had continued confidence in the Adviser's overall capabilities to manage the Fund.
Fund Expenses
The Board considered the advisory fee and overall expense structure of the Fund and the comparative fee and expense information that had been provided in connection with the May Meetings. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund's total expense ratio (i.e., gross and net advisory fees, administrative fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated Hermes from the overall category of peer funds selected by Morningstar (the "Expense Peer Group"). The Board received a description of the methodology used to select the Expense Peer Group from the overall Morningstar category. The Board also reviewed comparative information regarding the fees and expenses of the broader group of funds in the overall Morningstar category.
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged to funds by other advisers, the use of comparisons between the Fund and its Expense Peer Group assisted the Board in its evaluation of the Fund's fees and expenses. The Board focused on comparisons with other registered funds more heavily than non-registered fund products or services because such comparisons are believed to be more relevant. The Board considered that other registered funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle, in fact, chosen and maintained by the Fund's shareholders. The Board noted that the range of such other registered funds' fees and expenses, therefore, appears to be a relevant indicator of what investors have found to be reasonable in the marketplace in which the Fund competes.
The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund's fee rates relative to its Expense Peer Group. In this regard, the Board noted that the contractual advisory fee rate was below the median of the Expense Peer Group, and the Board was satisfied that the overall expense structure of the Fund remained competitive.
Annual Financial Statements and Additional Information
20
The Board also received and considered information about the nature and extent of services offered and fees charged by Federated Hermes to other types of clients with investment strategies similar to those of the Federated Hermes Funds, including non-registered fund clients (such as institutional separate accounts) and third-party unaffiliated registered funds for which the Adviser or its affiliates serve as sub-adviser. The Board noted the CCO's statement that non-registered fund clients are inherently different products due to the following differences, among others: (i) types of targeted investors; (ii) applicable laws and regulations; (iii) legal structures; (iv) average account sizes; (v) portfolio management techniques made necessary by different cash flows and different associated costs; (vi) the time spent by portfolio managers and their teams (among other personnel across various departments, including legal, compliance and risk management) in reviewing securities pricing; (vii) SEC mandated risk management programs with respect to fund liquidity and use of derivatives; (viii) questions on regulatory reporting; (ix) a variety of different administrative responsibilities; and (x) degrees of risk associated with management. The Board also considered information regarding the differences in the nature of the services required for Federated Hermes to manage its proprietary registered fund business versus managing a discrete pool of assets as a sub-adviser to another institution's registered fund, noting the CCO's statement that Federated Hermes generally performs significant additional services and assumes substantially greater risks in managing the Fund and other Federated Hermes Funds than in its role as sub-adviser to an unaffiliated third-party registered fund. The Board noted that the CCO emphasized that differences in fees for providing advisory services to other types of clients may not be appropriate when judging the appropriateness of the Federated Hermes Funds' advisory fees because of the different services provided.
In the case of the Fund, the Board noted that Federated Hermes does not manage any other types of clients that are comparable to the Fund.
Based on these considerations, the Board concluded that the fees and total operating expenses of the Fund, in conjunction with other matters considered, are reasonable in light of the services provided.
Profitability
The Board received and considered profitability information furnished by Federated Hermes. Such profitability information included revenues reported on a fund-by-fund basis and estimates of the allocation of expenses made on a fund-by-fund basis, using allocation methodologies specified by the CCO and described to the Board. The Board considered the CCO's statement that, while the cost allocation report applies consistent allocation processes for purposes of general comparison of funds, the inherent difficulties in arbitrarily allocating costs lack precision and may cause the report to be unreliable because a single change in an allocation estimate can dramatically alter the resulting estimate of cost and/or profitability of a Federated Hermes Fund and may produce unintended consequences. In addition, the Board considered the CCO's statement that the allocation methodologies used by Federated Hermes in estimating profitability for purposes of reporting to the Board in connection with the continuation of the Contract are consistent with the methodologies previously reviewed by an independent consultant. The Board noted that the independent consultant had previously conducted a review of the allocation methodologies and reported to the Board that, although there is no single best method to allocate expenses, the methodologies used by Federated Hermes are reasonable. The Board considered the CCO's statement that the estimated profitability to the Adviser from its relationship with the Fund was not unreasonable in relation to the services provided.
The Board also reviewed information compiled by Federated Hermes comparing its profitability information to other publicly-held fund management companies, including information regarding profitability trends over time. The Board recognized that profitability comparisons among fund management companies are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund management company is affected by numerous factors. The Board considered the CCO's statement that, based on such profitability information, Federated Hermes' profit margins did not appear to be excessive and that Federated Hermes appeared financially sound, with the resources available to fulfill its contractual obligations.
Economies of Scale
The Board received and considered information about the notion of possible realization of "economies of scale" as a fund grows larger, the difficulties of isolating and quantifying economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. In this regard, the Board considered that Federated Hermes has made significant and long-term investments in areas that support all of the Federated Hermes Funds, such as: portfolio management, investment research and trading operations; shareholder services; compliance; business continuity, cybersecurity and information security programs; internal audit and risk management functions; and technology, systems capabilities and use of data. The Board noted that Federated Hermes' investments in these areas are extensive and are designed to provide enhanced or expanded services to the Federated Hermes Funds and their shareholders. The Board considered that the benefits of these investments are likely to be shared with the family of Federated Hermes Funds as a whole. In addition, the Board considered that fee waivers and expense reimbursements are another means for potential economies of scale to be shared with shareholders and can provide protection from an increase in expenses if a Federated Hermes Fund's assets decline. The Board considered that, in order for the Federated Hermes Funds to remain competitive
Annual Financial Statements and Additional Information
21
in the marketplace, Federated Hermes has frequently waived fees and/or reimbursed expenses for the Federated Hermes Funds and has disclosed to shareholders and/or reported to the Board its intention to do so (or continue to do so) in the future. The Board also considered that Federated Hermes has been active in managing expenses of the Federated Hermes Funds in recent years, which has resulted in benefits being realized by shareholders.
The Board also received and considered information on adviser-paid fees (commonly referred to as "revenue sharing" payments) that was provided to the Board throughout the year and in connection with the May Meetings. The Board considered that Federated Hermes believes that this information is relevant to consider whether Federated Hermes had an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, but should not be considered when evaluating the reasonableness of advisory fees. The Board also noted the absence of any applicable regulatory or industry guidelines on economies of scale, which is compounded by the lack of any uniform methodology or pattern with respect to structuring fund advisory fees with breakpoints that serve to reduce the fees as a fund attains a certain size.
Other Benefits
The Board considered information regarding the compensation and other ancillary (or "fall-out") benefits that Federated Hermes derived from its relationships with the Federated Hermes Funds. The Board considered that Federated Hermes may derive a benefit to its reputation as an adviser to the Fund, which may help in attracting other clients and investment personnel. The Board noted that, in addition to receiving advisory fees under the Federated Hermes Funds' investment advisory contracts, Federated Hermes' affiliates also receive fees for providing other services to the Federated Hermes Funds under separate service contracts, including for serving as the Federated Hermes Funds' administrator and distributor. In this regard, the Board considered that Federated Hermes' affiliates provide distribution and shareholder services to the Federated Hermes Funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The Board also received and considered information detailing the benefits, if any, that Federated Hermes may derive from its receipt of research services from brokers who execute portfolio trades for the Federated Hermes Funds.
Conclusions
The Board considered the CCO's presentation and statements and the information accompanying the CCO Management Fee Report. The Board recognized that its evaluation of the Federated Hermes Funds' advisory and sub-advisory arrangements is a continuing and ongoing process that is informed by the information that the Board requests and receives from management throughout the course of the year.
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Board, and the evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the continuation of the Contract. The Board based its determination to approve the Contract on the totality of the circumstances and relevant factors and with a view of past and future long-term considerations. Not all of the factors and considerations identified above were necessarily deemed to be relevant to the Fund, nor did the Board consider any one of them to be determinative.
Annual Financial Statements and Additional Information
22
Mutual funds are not bank deposits or obligations, are not guaranteed by any bank and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.
This information is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.
Federated Hermes International Growth Fund
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedHermes.com/us
or call 1-800-341-7400.
or call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 31423A648
CUSIP 31423A630
CUSIP 31423A630
Q454746 (7/26)
©2026 Federated Hermes, Inc.
| Item 8. | Changes in and Disagreements with Accountants for Open-End Management Investment Companies |
Federated Hermes Emerging Markets Equity Fund: Not Applicable.
Federated Hermes International Equity Fund: Not Applicable.
Federated Hermes International Growth Fund: Not Applicable.
| Item 9. | Proxy Disclosures for Open-End Management Investment Companies. |
Federated Hermes Emerging Markets Equity Fund: Not Applicable.
Federated Hermes International Equity Fund: Not Applicable.
Federated Hermes International Growth Fund: Not Applicable.
| Item 10. | Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. |
Federated Hermes Emerging Markets Equity Fund: The Fund's disclosure of remuneration items is included as part of the Financial Statements filed under Item 7 of this form.
Federated Hermes International Equity Fund: The Fund's disclosure of remuneration items is included as part of the Financial Statements filed under Item 7 of this form.
Federated Hermes International Growth Fund: The Fund's disclosure of remuneration items is included as part of the Financial Statements filed under Item 7 of this form.
| Item 11. | Statement Regarding Basis for Approval of Investment Advisory Contract. |
Federated Hermes Emerging Markets Equity Fund: The Fund's Evaluation and Approval of Advisory Contract summary by fund appear in the Financial Statements filed under Item 7 of this form.
Federated Hermes International Equity Fund: The Fund's Evaluation and Approval of Advisory Contract summary by fund appear in the Financial Statements filed under Item 7 of this form.
Federated Hermes International Growth Fund: The Fund's Evaluation and Approval of Advisory Contract summary by fund appear in the Financial Statements filed under Item 7 of this form.
| Item 12. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
| Item 13. | Portfolio Managers of Closed-End Management Investment Companies. |
Not Applicable
| Item 14. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not Applicable
| Item 15. | Submission of Matters to a Vote of Security Holders. |
No Changes to Report
| Item 16. | Controls and Procedures. |
(a) The registrant's Principal Executive Officer and Principal Financial Officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures as of a date within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
| Item 17. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not Applicable
| Item 18. | Recovery of Erroneously Awarded Compensation |
(a) Not Applicable
(b) Not Applicable
| Item 19. | Exhibits |
(a)(1) Not Applicable.
(a)(2) Not Applicable.
(a)(3) .
(a)(4) Not Applicable.
(a)(5) Not Applicable.
(b) .
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: Federated Hermes Adviser Series
By: /s/ Jeremy D. Boughton
Jeremy D. Boughton, Principal Financial Officer
Date: July 24, 2026
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ J. Christopher Donahue
J. Christopher Donahue, Principal Executive Officer
Date: July 24, 2026
By: /s/ Jeremy D. Boughton
Jeremy D. Boughton, Principal Financial Officer
Date: July 24, 2026
Federated Hermes Adviser Series published this content on July 28, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on July 28, 2026 at 14:16 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]