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.

Disclosure: My own brother is about to start a new job at Windsor (CT) Fed. Savings Bank.
Because of that, I went over to their webpage.
CD "Special" is for 8 months, 3% rate, 3.04% yield. Start with $1,000.00 minimum. I dunno how "special" that is, but now you know. :)
https://www.windsorfederal.com/Personal/Personal-Savings/CDs

Lots of MBS in those. Pimco and DoubleLine noted them several weeks back as high yielding investments with a margin of safety, given how oversold they thought those securities were. The port yield and credit quality of Pimco Income looks to be benefitting, close to 6% depending on share class, for a low-ish IG fund overall (A- per M* metrics).
I've never owned any of those securities directly, so not sure about safety vs. Treasuries. I'd guess pretty safe outside a major disaster like 2008, but not up to what you get with T's.
Edit: Fidelity is showing a new-issue Fed Home Loan Bank 1y offering at 5.47%, not call protected.

Can anyone explain what a "Government Agencies" bond is. I haven't paid attention to them on Schwab's site because treasuries have been the sweet spot, but now I see a 1 year GA at 5.37%. Does this have the same safety as a treasury?

This weeks one can build a nice 3 mo, 6 mo and 12 month T bill ladder with yield ranging from 4.85 - 5.0%. Since today is a holiday, Fidelity still have the auction open.
Also don’t forget to check out the CDs too.

When I was looking to buy my first house, mortgage rates were 16%.
Folks who had 6% mortgages were in clover. Banks were offering them CASH to refinance at higher rates. A guy in my department said his bank told him he HAD to refinance.
I bought using a land contract at 11%, not realizing the risks.
(I can also remember when gas was 25.9, and a Lotus Europa was $7,000.)

*** Bonds of most flavors received a face slap again this week, although many bond sectors were positive on FRIDAY, easing some of the losses. I'm still inclined towards IG bonds for the longer term, being year(s) not months; when the FED rates increases begin to stop and move downward. Duration right now is important for we investors, as the yield's for the short end are 'high'; as noted in the yield curve notations at MFO. At some point, when the economy finds a defined direction; longer duration will find a path. I keep watching for rotations with yields/pricing, as I lean more towards attempting to find the profit from pricing; but right now I'm happy with the +4% yields of a MMKT. This was not the case in April, 2022.

Inflation still persists while consumer spending is healthy. The street now is expecting 3 more 25 bps rate hikes this year. All my core bond funds took a sizable hit last week. Noted that the 2 yr and 10 yr T notes are moving in recent weeks that contributed to lower bond prices. This week we are buying T bills instead as they yield close to 5%.
Rotation from larger caps to smaller ones, especially value funds net good gain this year. Not so sure with oversea markets as the conflicts in Ukraine and China continue.

Larry-another interpretation of $hit was Saddam Hussein International Terminal !

+1.

https://www.cnbc.com/2023/02/20/china-formalizes-rules-for-overseas-ipos.html
"*The China Securities Regulatory Commission announced late Friday new rules that require domestic companies to comply with national security measures and personal data protection law before going public overseas.
*The CSRC said its rules for overseas listings are set to take effect March 31.
*The rules do not ban the variable interest entity structure commonly used by Chinese companies when listing in the U.S.
..."
NOTE. On the other hand, the US rules for Chinese VIEs/ADRs listed in the US are for public access to financials and audits by the US PCAOB. There has been some recent progress in this area under the US threat for delisting within 3 years.

While there are several ways to achieve absolute-return strategies, NOPE uses long-short strategies as noted in the Yahoo Finance Profile before, and in its prospectus below. Noble-Impact is a subadvisor under Toroso, so the next news may be that the subadvisor is fired, and after a few weeks, the ETF is shut - my guesses without any inside knowledge.
https://www.sec.gov/Archives/edgar/data/1742912/000138713122009588/nope-497k_090722.htm
"Principal Investment Strategies
The Fund is an actively-managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by purchasing long positions in securities expected to increase in price and/or taking short positions in securities expected to decline in price. The Fund will generally have net exposure ranging from 100% short to 150% long. When the value of the Fund’s outstanding short positions is equal to the Fund’s net assets, the Fund is 100% short. The Fund’s net exposure at any time is the total of the Fund’s percentage long holdings (including leverage) less the percentage of its short holdings. For example, if the Fund’s long holdings totaled 60% and its short holdings totaled 40%, the Fund’s net exposure would be 20% (60%-40%)."
Among the risks mentioned,
"Principal Investment Risks
...
New Sub-Adviser Risk. The Sub-Adviser is a newly formed entity and has no experience with managing an exchange-traded fund, which may limit the Sub-Adviser’s effectiveness...."
A search on "benchmark" showed no mention at all in the prospectus. Conservative absolute-return strategies mention risk-free rate + some spread as the goal/benchmark although those may be missed too.