@sma3 Green Century has a particular focus on environmental issues so they will have exposure to some other problematic companies in industries like pharma. There is no perfect solution here. That said, even when they own problematic companies, they often engage with them, including by filing their own shareholder resolutions to change the companies' policies, and supporting other activist campaigns: https://greencentury.com/impact/
Regarding the percentage of their profits that goes to non-profit environmental groups, my understanding is it is 100%, perhaps the most interesting fact of all: https://greencentury.com/about-us/

Support of Environmental and Public Health Nonprofits: One hundred percent (100%) of the profits earned managing the Green Century Funds belong to our non-profit owners who run critical environmental and public health campaigns.
The organizations which founded and own Green Century Capital Management Inc are: California Public Interest Research Group (CALPIRG), Citizen Lobby of New Jersey (NJPIRG), Colorado Public Interest Research Group (COPIRG), ConnPIRG Citizen Lobby, Fund for the Public Interest, Massachusetts Public Interest Research Group (MASSPIRG), MOPIRG Citizen Organization, PIRGIM Public Interest Lobby, and Washington State Public Interest Research Group (WASHPIRG).
We are one of the first fossil fuel free, diversified and environmentally responsible mutual funds.

Regarding investing in a different lower-cost fund and donating the difference to a charity, I doubt a different fund would do this: https://greencentury.com/wp-content/uploads/2022/10/NEW-SA-2-pager-season-higlights-9.30.22.pdf Engagement campaigns cost money. I agree the fees are high here, but I find some of their campaigns impressive, particularly the Apple one:

Apple* announced in November 2021 that it would provide individual consumersaccess to replacement parts, tools and repair manuals needed to perform common repairs to its products, marking a notable reversal for the company. Apple had vigorously lobbied against legislation that would require them to allow others to fix their products. The announcement came after discussions with Apple and on the same day that Green Century had to decide whether to press forward on a right-to-repair shareholder proposal. Apple launched the program in April.
McDonald’s* has been a target of Green Century’s shareholder advocacy in recent
years because of the fast-food giant’s reliance on unsustainable factory farming
practices. In 2022, Green Century’s President Leslie Samuelrich was nominated
to McDonald’s board of directors, and the U.S. Humane Society has credited the
McDonald’s board fight with helping pressure CVS* and Walgreens* to accelerate
their transitions to cage-free eggs and pushing General Mills* and Denny’s* to
move towards elimination of gestation crates in their pork supply chains.
Nearly 70% of Costco shareholders in January voted in favor of a Green Century
proposal requesting that the company set greenhouse gas emission targets.
Green Century’s proposal prompted Costco to announce an expedited timeline for
disclosing supply chain emissions, to commit to developing a Scope 3 action plan
and reduction targets, and to announce its first reduction targets for its operational
and purchased energy (Scope 1 and 2) emissions.

@MikeM,

2- It's not a given high quality bonds will move opposite equities as we saw last year. I might argue stocks and bonds may stay correlated through this year too. That again makes locked in rates of 5%'ish a nice safe balance to falling equities.

Just as the bulk of rate hike is behind us, there may be few more 25 bps hikes coming in March and May. Today both stocks and bonds are falling simultaneously and their asset correlation approach 1.0 similar to that of last year. Thus, bonds offer little protection to stocks in today’s environment.
Today, JUNK fell 2X that of BND and they truly track more of stocks than bonds. Likewise, I bought 6 and 12 mo T bills today as older ones matured. Who say cash is trash?

@LewisBraham
Thanks for tip on Green Century. Quick look shows they have about matched SP500 while avoiding fossil fuel etc. As 2% is ABBV and MRK 1.5% they are not too focused on inflated drug costs as a social issue.
Their fees are rather high. Do you know how much of their "profit" they have sent to the Public Interest Research Groups? Another idea would be to find a similar cheaper fund and donate the fee difference to pubic interest groups or environmental organizations.

The US does not have capitalism. What we live under is a "corporate socialistic welfare" where huge corporations get federal and state benefits of all kinds ( tax breaks, regulatory pass throughs, sweetheart laws etc) as long as they pay off the politicians with campaign contributions, do nothing lobbying jobs and secret stock deals. Federal bailouts are available if company policies prove incorrect and the company is failing.
As a prime example I give you ABBV who has played the patent system to control Humira for decades, making billions.
The only goals of most CEOs is to increase their salaries and perks and stay in the job as long as they can. The average CEO compensation has increased 1322% since 1978 and they make 350 times the average worker.
True capitalism would have forced Merrill Lynch, Citi etc to go bankrupt in 2008, and sent their CEOs to jail for fraud, and many companies would have shut their doors forever in the pandemic.
@baseballfan
A Democratic socialist system would have the State control these excesses, partly though ownership of essential industries and partly though effective regulation. We have none of that.
Can't wait to see how "free enterprise" handles the PFAS contamination of drinking water throughout the US. Anybody think 3M will go bankrupt and it's CEOs all go to jail?

Thanks @MikeM. Your take is much appreciated. Generally I’ve tried to add a bit when (10-year) rates approach 4% and sell a bit at under 3.5%. Explains the choice of an etf over a good mutual fund. That said - you may well be right … we dinosaurs are very slow in changing direction. :)
PS - I’m old enough to remember when money market funds yielded 15-20%.

Hi @hank. I guess I have an opposite view of this:

Still, I’d rather be in intermediate duration AAA fixed income than cash because (1) I don’t believe these high rates can persist and (2) high quality bonds should provide better protection in the event of a stock crash.

1- These high rates may not persist, but why not grab them while you can? I just picked up a 9 mo and a 12 mo treasury at ~5.1% today. So in that case that rate is locked in for at least those time frames. You'll make a little less moving out in duration but still can get 4.7 or 4.8 for a couple years anyway.
2- It's not a given high quality bonds will move opposite equities as we saw last year. I might argue stocks and bonds may stay correlated through this year too. That again makes locked in rates of 5%'ish a nice safe balance to falling equities.
Different view. No right or wrong.

To @msf's good list, I may add that within retirement accounts (401k, 403b, TSP, etc), Stable-Value (SV) Funds.
There are also Money Market ACCOUNTS by banks that are FDIC insured.

I maintain very little in cash. Some of my conservative allocation funds and diversified fixed income funds hold a certain amount - so I’ll let the managers work on that corner of investing.
Since I started using GNMA (etf) 3-6 months ago as a cash substitute it’s barely broken even. Not what I would have expected. But with the 10-year Treasury holding near 4%, that’s what happens. Still, I’d rather be in intermediate duration AAA fixed income than cash because (1) I don’t believe these high rates can persist and (2) high quality bonds should provide better protection in the event of a stock crash.
Not intended as advice. Indeed, am feeling more and more like a moss covered dinosaur in this era of cash-clamor.

At least on Schwab, Treasuries pay more than a CD up to 18 mos and they are easily liquidated without a penalty and are state tax exempt.
Two and three years CDs are 0.25 and 0.4 % ahead, but who knows what interest rates will be then.
I had a CD got bust in 1984 or 5. While I got my money back it took many months.

https://www.sec.gov/Archives/edgar/data/1707560/000162363223000304/fhidefisr6prsaisup455909edg.htm
497 1 fhidefisr6prsaisup455909edg.htm
Federated Hermes International Developed Equity Fund
A Portfolio of Federated Hermes Adviser Series
INSTITUTIONAL SHARES (TICKER HIEIX)
CLASS R6 SHARES (TICKER HIERX)
SUPPLEMENT TO SUMMARY PROSPECTUS, PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION DATED JANUARY 31, 2023
On February 16, 2023, the Board of Trustees (the “Board”) of Federated Hermes Adviser Series approved a Plan of Liquidation for Federated Hermes International Developed Equity Fund (the “Fund”) pursuant to which the Fund will be liquidated on or about April 21, 2023 (the “Liquidation” or the “Liquidation Date”).
In approving the Liquidation, the Board determined that the liquidation of the Fund is in the best interests of the Fund and its shareholders. Accordingly, the Fund’s investment adviser will begin positioning the Fund for liquidation, which may cause the Fund to deviate from its stated investment objectives and strategies, including, but not limited to, the Fund’s policy to invest at least 80% of net assets (plus any borrowings for investment purposes) in equity securities of developed markets. It is anticipated that the Fund’s portfolio will be converted into cash on or prior to the Liquidation Date.
Effective on or about March 31, 2023, the Fund will be closed to new investors and closed to additional investments by existing shareholders. Any shares outstanding at the close of business on the Liquidation Date will be automatically redeemed. Such redemptions shall follow the procedures set forth in the Fund’s Plan of Liquidation.
Dividends and capital gains, if any, will be distributed to shareholders prior to the Liquidation.
At any time prior to the Liquidation Date, the shareholders of the Fund may redeem their shares of the Fund pursuant to the procedures set forth in the Fund’s Prospectus. Shareholders of the Fund’s Institutional Shares and Class R6 Shares may exchange shares of the Fund for shares of any Federated Hermes fund or share class that does not have a stated sales charge or contingent deferred sales charge, except shares of Federated Hermes Institutional Money Market Management, Federated Hermes Institutional Tax-Free Cash Trust, Federated Hermes Institutional Prime Obligations Fund, Federated Hermes Institutional Prime Value Obligations Fund, and no-load Class A Shares and Class R Shares of any Fund if the shareholder meets the eligibility criteria and investment minimum for the Federated Hermes fund for which the shareholder is exchanging.
The Liquidation of the Fund will be a recognition event for tax purposes. In addition, any income or capital gains distributed to shareholders prior to the Liquidation Date or as part of the liquidation proceeds may also be subject to taxation. All investors should consult with their tax advisor regarding the tax consequences of this Liquidation.
February 21, 2023
 
Federated Hermes International Developed Equity Fund
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedInvestors.com
or call 1-800-341-7400.
Federated Securities Corp., Distributor
Q455909 (2/23)
© 2023 Federated Hermes, Inc.

update:
https://www.sec.gov/Archives/edgar/data/1355064/000158064223000951/day-hagen_497.htm

Everyone's taxonomy is different. For me, cash equivalents are vehicles that I can cash out on relatively short notice (high liquidity) with virtually no credit risk and zero interest rate risk.
FDIC insured checking accounts check all the boxes.
FDIC insured savings accounts may require seven day notice; short enough to be cash (for me)
FDIC insured CDs issued at banks are subject to early withdrawal penalties but no interest rate risk; time restrictions same as savings accounts - close enough to be cash
FDIC insured CDs sold through brokerages are subject to interest rate risk unless held to maturity - not cash for me; YMMV
Government MMFs - Treasury only funds have no credit risk, no notice requirement, no interest rate risk - cash equivalent
Government MMFs - other - minuscule credit risk, no notice requirement, no interest rate risk - cash equivalent
Prime MMFs - small credit risk, no notice requirement, no interest rate risk - close enough to cash for me; YMMV
Savings bonds - no credit risk, no notice requirement(*), no interest rate risk - cash equivalent for me after one year (* cannot be redeemed before one year, and like CDs subject to early withdrawal penalties); YMMV
Treasuries - no credit risk, no notice requirement, but interest rate risk
Here's a more authoritative definition. Notice that it includes short term (90 day) commercial paper as cash equivalent. If one is going to count prime MMFs as cash I suppose that makes some sense. Though the credit risk of a prime MMF is much less than that of an individual bond. And the pricing rules are different.
https://fmx.cpa.texas.gov/fmx/training/wbt/cashflow/281.php

I see most are callable, but not sure on a 1 year bond that would matter much. But what do I know.

Same here.

@Sven, don't you mean apples and oranges comparison? It matters little that your bond fund is yielding 5% if your total return, even with that yield summed in, is down -10% in a year.

More interest read on Ray Dalio:

Billionaire Ray Dalio, founder of the hedge fund Bridgewater Associates, will receive billions of dollars in exchange for his retirement from the firm after “more than six months of frantic behind-the-scenes wrangling,” according to the New York Times, and after controversial comments about China raised eyebrows.

https://forbes.com/sites/tylerroush/2023/02/20/ray-dalio-worth-19-billion-will-get-billions-more-after-frantic-exit-negotiations-report-says/?sh=49fd6cba4a01

CDs vs bond funds are really apple-to-orange comparison. CDs are considered cash equivalent, i.e. saving accounts and money market funds. The credit risk is low since they are FDIC guarantee. Bond funds have their duration and credit quality risk. Even the total bond index had negative 13% loss last year while CDs did just fine.

Thanks all for the replies on Federal Agency bonds. Looking closer, I do see the Federal mortgage or loan in the issuers names. I see most are callable, but not sure on a 1 year bond that would matter much. But what do I know.

Even at current favorable rates, a minimum-allowable deposit gets you nowhere, really, for only one year's time. You really must commit a lot more than $1,000.00 for that 5% rate to make a real difference for you. 5% is pretty damn good, though. My bond funds offer a higher yield already. Given my current positioning, I can add to HYDB or SCHP, the latter being rather much safer. Meanwhile, back at the ranch, my T-IRA bond funds are doing their job for me, too. (I like the commercial. Cute.)

Large brokerages such as Fidelity offers one-yr non-callable brokered CDs yielding 4.85%. ... Bank CDs are not competitive for my $
Depends on the month and the bank.
Capital One - 5.00% 11 mo online CD
Ally Bank - 5.00% 18 mo online CD
BMO Harris Bank - 5.00% 12 mo online CD (rate depends on zip code)
Perhaps "you should have a Harris Banker" (pre BMO acquisition)

Didn’t mean to suggest anyone was talking their book ... :)
I’ve cited Blackrock’s global fixed income head Rick Rieder on a few past occasions who sounds ecstatic about opportunities in fixed income. I haven’t a clue - except to say that 3.85% on the 10-year certainly looks more appealing than 0.50% did little over a year ago. Yes, it was a very good interview with Gibson Smith. Certainly sounds knowledgeable.