Annual Shareholder Report

September 30, 2020

Share Class \| Ticker	A \| VSFAX	C \| VSFCX	R \| VSFRX
	Institutional \| VSFIX	R6 \| VSFSX

Federated Hermes Clover Small Value Fund

(formerly, Federated Clover Small Value Fund)

Successor to the Touchstone Diversified Small Cap Value Fund Established 1996

A Portfolio of Federated Hermes Equity Funds

(formerly, Federated Equity Funds)

IMPORTANT NOTICE REGARDING REPORT DELIVERY

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4.

You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4. Your election to receive reports in paper will apply to all funds held with the Fund complex or your financial intermediary.

Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee

J. Christopher
Donahue

President

Federated Hermes Clover Small Value Fund

Letter from the President

Dear Valued Shareholder,

I am pleased to present the Annual Shareholder Report for your fund covering the period from October 1, 2019 through September 30, 2020.

As we all confront the unprecedented effects of the coronavirus and the challenges it presents to our families, communities, businesses and the financial markets, I want you to know that everyone at Federated Hermes is dedicated to helping you successfully navigate the markets ahead. You can count on us for the insights, investment management knowledge and client service that you have come to expect. Please refer to our website, FederatedInvestors.com, for timely updates on this and other economic and market matters.

Thank you for investing with us. I hope you find this information useful and look forward to keeping you informed.

Sincerely,

J. Christopher Donahue, President

Management’s Discussion of Fund Performance (unaudited)

The total return of Federated Hermes Clover Small Value Fund (the “Fund”), based on net asset value for the 12-month reporting period ended September 30, 2020, was -10.77% for Class A Shares, -11.43% for Class C Shares, -10.78% for Class R Shares, -10.57% for Institutional Shares and -10.47% for Class R6 Shares. The Russell 2000® Value Index (R2000V),1 a broad-based securities market index, returned -14.88% during the same period. The total return for the Morningstar Small Value Funds Average (MSVFA),2 a peer group average for the Fund, was -14.26% during the same period. The Fund’s and the MSVFA’s total return for the most recent fiscal year reflected actual cash flows, transaction costs and other expenses which were not reflected in the total return of the R2000V.

The Fund’s investment strategy seeks to achieve capital appreciation through careful analysis and selection of individual stocks. For the reporting period, stock selection was the most significant factor affecting the Fund’s performance relative to the R2000V.

The following discussion will focus on the performance of the Fund’s Class R6 Shares relative to the R2000V.

MARKET OVERVIEW

After a strong fourth quarter in 2019, the outbreak and spread of the COVID-19 virus in the first quarter of 2020 significantly disrupted an otherwise healthy U.S. economy resulting in market volatility and dramatic price swings in both directions. Fear and uncertainty in the early days of the outbreak drove investor sentiment to the relative safety of larger, high-quality companies. For the 12-month period ending September 30, 2020, stocks of larger companies and growth companies fared better than those of smaller capitalizations and value stocks.

Broad U.S. equity indices, such as the S&P 500 Index,3 saw modest gains, while the small value indices, such as the R2000V, experienced declines during this period.The stock market underwent a significant selloff during the first quarter of 2020 due to the coronavirus pandemic, and small value stocks were hit particularly hard. The Federal Reserve lowered interest rates and provided stimulus packages that helped cushion the downturn for businesses and individuals. The R2000V produced positive performance in the second and third quarters but considerably lagged that of the broad equity market and other asset classes, as fiscal and monetary stimulus poured into the economy and signs of the economy reopening emerged.

Annual Shareholder Report

STOCK SELECTION4

Stock selection in the Industrials sector had the greatest positive impact on the Fund’s benchmark-relative performance for the reporting period. Discerning stock selection in the Real Estate sector was another source of strength for the Fund. Thor Industries, a Consumer Discretionary company, delivered notable performance for the Fund during the reporting period as did Horizon Therapeutics, a Health Care company, and Diodes Incorporated, a security in the Information Technology sector. Detracting from relative performance over the period was stock selection in the Financials and Consumer Staples sectors. Invesco Mortgage Capital, Inc. and American Assets Trust, Inc., both detracted from performance, as did Helix Energy Solutions, an energy company. In the Financials sector, Argo Group International posted disappointing results that negatively affected the Fund’s return.

Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the R2000V.

Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the MSVFA.

The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index is unmanaged, and it is not possible to invest directly in an index.

Since the Fund invests in smaller companies, it may be more volatile, and subject to greater short-term risk, than funds that invest in larger companies. Smaller companies may have limited resources, product lines and markets and their securities may trade less frequently and in more limited volumes than securities of larger companies. Value stocks may lag growth stocks in performance at times, particularly in late stages of a market advance.

Annual Shareholder Report

FUND PERFORMANCE AND GROWTH OF A $10,000 INVESTMENT

The graph below illustrates the hypothetical investment of $10,0001 in the Federated Hermes Clover Small Value Fund from September 30, 2010 to September 30, 2020, compared to the Russell 2000® Value Index (R2000V)2 and the Morningstar Small Value Funds Average (MSVFA).3 The Average Annual Total Return table below shows returns for each class averaged over the stated periods.

GROWTH OF A $10,000 INVESTMENT

Growth of $10,000 as of September 30, 2020

■ Total returns shown for Class C Shares include the maximum contingent deferred sales charge of 1.00% as applicable.

■ Total returns shown for Class A include the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450).

The Fund offers multiple share classes whose performance may be greater than or less than its other share class(es) due to differences in sales charges and expenses. See the Average Annual Return table below for the returns of additional classes not shown in the line graph above.

Annual Shareholder Report

Average Annual Total Returns for the Period Ended 9/30/2020

(returns reflect all applicable sales charges and contingent deferred sales charges as specified below in footnote #1)

	1 Year	5 Years	10 Years
Class A Shares	-15.67%	0.76%	5.29%
Class C Shares	-12.31%	1.14%	5.10%
Class R Shares4	-10.78%	1.88%	5.77%
Institutional Shares	-10.57%	2.15%	6.15%
Class R6 Shares4	-10.47%	2.17%	6.02%
R2000V	-14.88%	4.11%	7.09%
MSVFA	-14.26%	2.67%	6.44%

Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month-end performance and after-tax returns, visit FederatedInvestors.com or call 1-800-341-7400. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured.

Annual Shareholder Report

Represents a hypothetical investment of $10,000 in the Fund after deducting applicable sales charges: For Class A Shares, the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charges = $9,450); for Class C Shares, the maximum contingent deferred sales charge is 1.00% on any redemption less than one year from the purchase date. The Fund’s performance assumes the reinvestment of all dividends and distributions. The R2000V and MSVFA have been adjusted to reflect reinvestment of dividends on securities in the index and average.

The R2000V measures the performance of the small-cap value segment of the U.S. equity universe. It includes those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values. The R2000V is not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund’s performance. The index is unmanaged, and unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.

Morningstar figures represent the average of the total returns reported by all the funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. The Morningstar figures in the Growth of $10,000 line graph are based on historical return information published by Morningstar and reflect the return of the funds comprising the category in the year of publication. Because the funds designated by Morningstar as falling into the category can change over time, the Morningstar figures in the line graph may not match the Morningstar figures in the Average Annual Total Returns table, which reflect the return of the funds that currently comprise the category.

The Fund’s Class R Shares commenced operations on December 1, 2010. The Fund’s Class R6 Shares commenced operations on March 29, 2016. For the period prior to the commencement of operations of Class R Shares and Class R6 Shares, the performance information shown is for the Fund’s Class A Shares. In relation to Class R Shares, the performance of Class A Shares has been adjusted to reflect the expenses applicable to Class R Shares. In relation to Class R6 Shares, the performance of Class A Shares has not been adjusted to reflect expenses of Class R6 Shares since Class R6 Shares have a lower expense ratio than the expense ratio of the Class A Shares. The performance of Class A Shares has been adjusted to remove any voluntary waiver of Fund expenses related to the Class A Shares that may have occurred during the period prior to the commencement of operations of Class R6 Shares. Additionally, for the Class R Shares and Class R6 Shares, the performance information shown above has been adjusted to reflect the absence of sales charges applicable to Class A Shares.

Annual Shareholder Report

Portfolio of Investments Summary Table (unaudited)

At September 30, 2020, the Fund’s sector composition1 was as follows:

Sector Composition	Percentage of Total Net Assets
Financials	26.3%
Industrials	15.4%
Consumer Discretionary	11.4%
Information Technology	10.8%
Real Estate	8.5%
Health Care	5.6%
Materials	5.3%
Utilities	5.2%
Consumer Staples	3.6%
Communication Services	3.4%
Energy	2.8%
Cash Equivalents2	5.0%
Other Assets and Liabilities—Net3	(3.3)%
TOTAL	100%

1	Except for Cash Equivalents and Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GIC.
2	Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements.
3	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Annual Shareholder Report

Portfolio of Investments

September 30, 2020

Shares			Value
		COMMON STOCKS— 98.3%
		Communication Services— 3.4%
25,105		Nexstar Media Group, Inc., Class A	$2,257,692
277,160	1	Orbcomm, Inc.	942,344
111,625	1	Vonage Holdings Corp.	1,141,924
		TOTAL	4,341,960
		Consumer Discretionary— 11.4%
101,115	1	Adient PLC	1,752,323
78,075		American Eagle Outfitters, Inc.	1,156,291
8,465	1	Asbury Automotive Group, Inc.	824,914
81,135		Boyd Gaming Corp.	2,490,033
26,615		Dick’s Sporting Goods, Inc.	1,540,476
34,260		Kontoor Brands, Inc.	829,092
9,055	1	LGI Homes, Inc.	1,051,919
5,525		Lithia Motors, Inc., Class A	1,259,368
10,925		Thor Industries, Inc.	1,040,716
10,955	1	Visteon Corp.	758,305
62,735		Wyndham Destinations, Inc.	1,929,729
		TOTAL	14,633,166
		Consumer Staples— 3.6%
171,800	1	Hostess Brands, Inc.	2,118,294
179,920		Primo Water Corp.	2,554,864
		TOTAL	4,673,158
		Energy— 2.8%
42,770	1	Bonanza Creek Energy, Inc.	804,076
51,710	1	CNX Resources Corp.	488,142
117,565	1	Magnolia Oil & Gas Corp.	607,811
69,235	1	PDC Energy, Inc.	858,168
41,600		World Fuel Services Corp.	881,504
		TOTAL	3,639,701
		Financials— 26.3%
63,400		Ameris Bancorp	1,444,252
51,561		Argo Group International Holdings Ltd.	1,775,245
84,855		BancorpSouth Bank	1,644,490
78,835		CNO Financial Group, Inc.	1,264,513
10,770		Community Bank System, Inc.	586,534
48,400		Cowen Group, Inc.	787,468
307,685		First BanCorp	1,606,116
129,380		First Commonwealth Financial Corp.	1,001,401

Annual Shareholder Report

Shares			Value
		COMMON STOCKS— continued
		Financials— continued
78,015		First Interstate BancSystem, Inc., Class A	$2,484,778
75,360		Flagstar Bancorp, Inc.	2,232,917
44,000		Glacier Bancorp, Inc.	1,410,200
10,385		Hanover Insurance Group, Inc.	967,674
39,385		Horace Mann Educators Corp.	1,315,459
170,935		Investors Bancorp, Inc.	1,240,988
60,220		KKR Real Estate Finance Trust, Inc.	995,437
86,010		MGIC Investment Corp.	762,049
82,900		Old National Bancorp	1,041,224
96,995		Pennymac Mortgage Investment Trust	1,558,710
7,490		Primerica, Inc.	847,419
53,735		Radian Group, Inc.	785,068
40,155		Stifel Financial Corp.	2,030,237
82,134		TCF Financial Corp.	1,918,650
30,695	1	Tristate Capital Holdings, Inc.	406,402
80,835		United Community Banks, Inc.	1,368,537
240,230		Valley National Bancorp	1,645,575
25,920		WSFS Financial Corp.	699,062
		TOTAL	33,820,405
		Health Care— 5.6%
93,780	1	Aurinia Pharmaceuticals, Inc.	1,381,379
27,275	1	Avanos Medical, Inc.	906,076
100,785	1	Change Healthcare, Inc.	1,462,390
43,920	1	Coherus Biosciences, Inc.	805,493
67,595	1	Envista Holdings Corp.	1,668,245
18,825	1	Syneos Health, Inc.	1,000,737
		TOTAL	7,224,320
		Industrials— 15.4%
23,420		ABM Industries, Inc.	858,577
40,225		Altra Holdings, Inc.	1,487,118
31,880		Barnes Group, Inc.	1,139,391
26,890	1	BMC Stock Holdings, Inc.	1,151,699
40,820	1	Colfax Corp.	1,280,115
24,670		Deluxe Corp.	634,759
17,990	1	Herc Holdings, Inc.	712,584
57,195		Hillenbrand, Inc.	1,622,050
50,360		Kennametal, Inc.	1,457,419
35,305	1	Meritor, Inc.	739,287
29,470	1	Navistar International Corp.	1,283,124
11,690		Patrick Industries, Inc.	672,409
83,495		Rexnord Corp.	2,491,491

Annual Shareholder Report

Shares			Value
		COMMON STOCKS— continued
		Industrials— continued
21,000		SkyWest, Inc.	$627,060
26,410	1	SPX Corp.	1,224,896
74,040		Terex Corp.	1,433,414
21,855	1	WESCO International, Inc.	962,057
		TOTAL	19,777,450
		Information Technology— 10.8%
62,255		Benchmark Electronics, Inc.	1,254,438
33,400	1	Diodes, Inc.	1,885,430
21,290	1	ePlus, Inc.	1,558,428
110,270		KBR, Inc.	2,465,637
63,901	1	Perficient, Inc.	2,731,129
32,055	1	SMART Global Holdings, Inc.	876,384
22,445	1	WNS Holdings Ltd., ADR	1,435,582
274,690	1	ZixIt Corp.	1,604,190
		TOTAL	13,811,218
		Materials— 5.3%
40,435	1	Alcoa Corp.	470,259
26,940		Ashland Global Holdings, Inc.	1,910,585
27,505		Boise Cascade Co.	1,098,000
259,575	1,2	Ferroglobe Representation & Warranty Insurance Trust	0
71,515		Huntsman Corp.	1,588,348
29,810		Louisiana-Pacific Corp.	879,693
100,898		Trox Holdings PLC	794,067
		TOTAL	6,740,952
		Real Estate— 8.5%
12,175		Agree Realty Corp.	774,817
47,080		American Assets Trust, Inc.	1,134,157
77,170		Healthcare Realty Trust, Inc.	2,324,360
187,890		Lexington Realty Trust	1,963,451
137,070		Retail Opportunity Investments Corp.	1,427,584
57,700		STAG Industrial, Inc.	1,759,273
200,115		Sunstone Hotel Investors, Inc.	1,588,913
		TOTAL	10,972,555
		Utilities— 5.2%
15,760		Allete, Inc.	815,423
34,400		Otter Tail Corp.	1,244,248
36,320		Portland General Electric Co.	1,289,360
22,405		SJW Corp.	1,363,568

Annual Shareholder Report

Shares		Value
	COMMON STOCKS— continued
	Utilities— continued
37,100	Spire, Inc.	$1,973,720
	TOTAL	6,686,319
	TOTAL COMMON STOCKS (IDENTIFIED COST $120,847,895)	126,321,204
	INVESTMENT COMPANY— 5.0%
6,463,067	Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 0.15%3 (IDENTIFIED COST $6,466,298)	6,466,298
	TOTAL INVESTMENT IN SECURITIES—103.3% (IDENTIFIED COST $127,314,193)4	132,787,502
	OTHER ASSETS AND LIABILITIES - NET—(3.3)%5	(4,235,729)
	TOTAL NET ASSETS—100%	$128,551,773

Affiliated fund holdings are investment companies which are managed by the Adviser or an affiliate of the Adviser. Transactions with the affiliated fund holdings during the period ended September 30, 2020, were as follows:

	Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares
Value as of 9/30/2019	$8,551,439
Purchases at Cost	$110,944,544
Proceeds from Sales	$(113,032,652)
Change in Unrealized Appreciation/Depreciation	$24
Net Realized Gain/(Loss)	$2,943
Value as of 9/30/2020	$6,466,298
Shares Held as of 9/30/2020	6,463,067
Dividend Income	$63,359

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 Board of Trustees (the “Trustees“).
3	7-day net yield.
4	The cost of investments for federal tax purposes amounts to $131,367,837.
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 total net assets at September 30, 2020.

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.

Annual Shareholder Report

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.

Valuation Inputs
	Level 1— Quoted Prices	Level 2— Other Significant Observable Inputs	Level 3— Significant Unobservable Inputs	Total
Equity Securities:
Common Stocks
Domestic	$115,751,360	$—	$0	$115,751,360
International	10,569,844	—	—	10,569,844
Investment Company	6,466,298	—	—	6,466,298
TOTAL SECURITIES	$132,787,502	$—	$0	$132,787,502

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 Shareholder Report

Financial Highlights–Class A Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended September 30,
	2020	2019	2018	2017	2016
Net Asset Value, Beginning of Period	$19.23	$26.36	$29.16	$24.82	$23.20
Income From Investment Operations:
Net investment income1	0.03	0.05	0.02	0.17	0.16
Net realized and unrealized gain (loss)	(2.09)	(3.03)	1.47	4.80	1.96
Total From Investment Operations	(2.06)	(2.98)	1.49	4.97	2.12
Less Distributions:
Distributions from net investment income	(0.07)	(0.02)	(0.11)	(0.14)	(0.06)
Distributions from net realized gain	—	(4.13)	(4.18)	(0.49)	(0.44)
Total Distributions	(0.07)	(4.15)	(4.29)	(0.63)	(0.50)
Net Asset Value, End of Period	$17.10	$19.23	$26.36	$29.16	$24.82
Total Return2	(10.77)%	(11.25)%	5.64%	20.24%	9.27%
Ratios to Average Net Assets:
Net expenses3	1.26%	1.26%	1.27%	1.27%	1.26%
Net investment income	0.16%	0.26%	0.09%	0.64%	0.70%
Expense waiver/reimbursement4	0.21%	0.21%	0.16%	0.17%	0.15%
Supplemental Data:
Net assets, end of period (000 omitted)	$45,527	$62,463	$94,210	$102,606	$126,015
Portfolio turnover	89%	74%	84%	66%	89%

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	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.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Class C Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended September 30,
	2020	2019	2018	2017	2016
Net Asset Value, Beginning of Period	$17.85	$24.95	$27.91	$23.83	$22.40
Income From Investment Operations:
Net investment income (loss)1	(0.10)	(0.09)	(0.17)	(0.03)	(0.01)
Net realized and unrealized gain (loss)	(1.94)	(2.88)	1.39	4.60	1.88
Total From Investment Operations	(2.04)	(2.97)	1.22	4.57	1.87
Less Distributions:
Distributions from net investment income	—	—	—	—	(0.00)2
Distributions from net realized gain	—	(4.13)	(4.18)	(0.49)	(0.44)
Total Distributions	—	(4.13)	(4.18)	(0.49)	(0.44)
Net Asset Value, End of Period	$15.81	$17.85	$24.95	$27.91	$23.83
Total Return3	(11.43)%	(11.94)%	4.82%	19.34%	8.47%
Ratios to Average Net Assets:
Net expenses4	2.04%	2.01%	2.02%	2.02%	2.01%
Net investment income (loss)	(0.63)%	(0.50)%	(0.68)%	(0.12)%	(0.05)%
Expense waiver/reimbursement5	0.22%	0.18%	0.15%	0.16%	0.18%
Supplemental Data:
Net assets, end of period (000 omitted)	$5,716	$9,446	$16,028	$22,462	$21,253
Portfolio turnover	89%	74%	84%	66%	89%

1	Per share numbers have been calculated using the average shares method.
2	Represents less than $0.01.
3	Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.
4	Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
5	This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Class R Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended September 30,
	2020	2019	2018	2017	2016
Net Asset Value, Beginning of Period	$18.83	$25.93	$28.78	$24.51	$22.91
Income From Investment Operations:
Net investment income (loss)1	0.03	0.05	0.02	0.16	0.15
Net realized and unrealized gain (loss)	(2.05)	(2.99)	1.43	4.74	1.93
Total From Investment Operations	(2.02)	(2.94)	1.45	4.90	2.08
Less Distributions:
Distributions from net investment income	(0.07)	(0.03)	(0.12)	(0.14)	(0.04)
Distributions from net realized gain	—	(4.13)	(4.18)	(0.49)	(0.44)
Total Distributions	(0.07)	(4.16)	(4.30)	(0.63)	(0.48)
Net Asset Value, End of Period	$16.74	$18.83	$25.93	$28.78	$24.51
Total Return2	(10.78)%	(11.27)%	5.58%	20.22%	9.23%
Ratios to Average Net Assets:
Net expenses3	1.27%	1.32%	1.29%	1.28%	1.32%
Net investment income	0.16%	0.24%	0.08%	0.61%	0.67%
Expense waiver/reimbursement4	0.46%	0.40%	0.36%	0.36%	0.33%
Supplemental Data:
Net assets, end of period (000 omitted)	$9,646	$13,675	$16,013	$15,302	$13,010
Portfolio turnover	89%	74%	84%	66%	89%

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 the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Institutional Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended September 30,
	2020	2019	2018	2017	2016
Net Asset Value, Beginning of Period	$19.29	$26.48	$29.30	$24.93	$23.31
Income From Investment Operations:
Net investment income1	0.07	0.10	0.09	0.24	0.22
Net realized and unrealized gain (loss)	(2.08)	(3.06)	1.47	4.83	1.96
Total From Investment Operations	(2.01)	(2.96)	1.56	5.07	2.18
Less Distributions:
Distributions from net investment income	(0.15)	(0.10)	(0.20)	(0.21)	(0.12)
Distributions from net realized gain	—	(4.13)	(4.18)	(0.49)	(0.44)
Total Distributions	(0.15)	(4.23)	(4.38)	(0.70)	(0.56)
Net Asset Value, End of Period	$17.13	$19.29	$26.48	$29.30	$24.93
Total Return2	(10.57)%	(11.05)%	5.87%	20.56%	9.54%
Ratios to Average Net Assets:
Net expenses3	1.01%	1.01%	1.01%	1.02%	1.01%
Net investment income	0.36%	0.50%	0.32%	0.87%	0.95%
Expense waiver/reimbursement4	0.22%	0.16%	0.12%	0.13%	0.12%
Supplemental Data:
Net assets, end of period (000 omitted)	$63,019	$203,935	$333,887	$467,881	$468,727
Portfolio turnover	89%	74%	84%	66%	89%

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 the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Class R6 Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended September 30,				Period Ended 9/30/20161
	2020	2019	2018	2017	Period Ended 9/30/20161
Net Asset Value, Beginning of Period	$19.21	$26.39	$29.19	$24.84	$21.94
Income From Investment Operations:
Net investment income2	0.09	0.08	0.14	0.25	0.13
Net realized and unrealized gain (loss)	(2.09)	(3.02)	1.44	4.80	2.77
Total From Investment Operations	(2.00)	(2.94)	1.58	5.05	2.90
Less Distributions:
Distributions from net investment income	(0.06)	(0.11)	(0.20)	(0.21)	—
Distributions from net realized gain	—	(4.13)	(4.18)	(0.49)	—
Total Distributions	(0.06)	(4.24)	(4.38)	(0.70)	—
Net Asset Value, End of Period	$17.15	$19.21	$26.39	$29.19	$24.84
Total Return3	(10.47)%	(11.00)%	5.98%	20.58%	13.22%
Ratios to Average Net Assets:
Net expenses4	0.94%	0.94%	0.95%	0.95%	0.94%5
Net investment income	0.53%	0.37%	0.52%	0.94%	1.07%5
Expense waiver/reimbursement6	0.21%	0.14%	0.11%	0.11%	0.11%5
Supplemental Data:
Net assets, end of period (000 omitted)	$4,644	$8,297	$56,657	$11,006	$7,207
Portfolio turnover	89%	74%	84%	66%	89%7

1	Reflects operations for the period from March 29, 2016 (date of initial investment) to September 30, 2016.
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	Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended September 30, 2016.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Assets and Liabilities September 30, 2020

Assets:
Investment in securities, at value including $6,466,298 of investments in an affiliated holding* (identified cost $127,314,193)	$132,787,502
Cash	180
Income receivable	208,439
Receivable for shares sold	75,672
Total Assets	133,071,793
Liabilities:
Payable for shares redeemed	4,421,390
Payable for investment adviser fee (Note 5)	2,126
Payable for administrative fee (Note 5)	282
Payable for distribution services fee (Note 5)	5,751
Payable for other service fees (Notes 2 and 5)	10,136
Accrued expenses (Note 5)	80,335
Total Liabilities	4,520,020
Net assets for 7,549,337 shares outstanding	$128,551,773
Net Assets Consist of:
Paid-in capital	$153,517,458
Total distributable earnings (loss)	(24,965,685)
Total Net Assets	$128,551,773

Annual Shareholder Report

Statement of Assets and Liabilities–continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Class A Shares:
Net asset value per share ($45,526,602 ÷ 2,662,884 shares outstanding), no par value, unlimited shares authorized	$17.10
Offering price per share (100/94.50 of $17.10)	$18.10
Redemption proceeds per share	$17.10
Class C Shares:
Net asset value per share ($5,715,694 ÷ 361,588 shares outstanding), no par value, unlimited shares authorized	$15.81
Offering price per share	$15.81
Redemption proceeds per share (99.00/100 of $15.81)	$15.65
Class R Shares:
Net asset value per share ($9,646,222 ÷ 576,253 shares outstanding), no par value, unlimited shares authorized	$16.74
Offering price per share	$16.74
Redemption proceeds per share	$16.74
Institutional Shares:
Net asset value per share ($63,019,123 ÷ 3,677,831 shares outstanding), no par value, unlimited shares authorized	$17.13
Offering price per share	$17.13
Redemption proceeds per share	$17.13
Class R6 Shares:
Net asset value per share ($4,644,132 ÷ 270,781 shares outstanding), no par value, unlimited shares authorized	$17.15
Offering price per share	$17.15
Redemption proceeds per share	$17.15

*	See information listed after the Fund’s Portfolio of Investments.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Operations Year Ended September 30, 2020

Investment Income:
Dividends (including $63,359 received from an affiliated holding* and net of foreign taxes withheld of $22,199)	$3,156,675
Expenses:
Investment adviser fee (Note 5)	2,038,264
Administrative fee (Note 5)	178,368
Custodian fees	14,992
Transfer agent fees (Note 2)	247,335
Directors’/Trustees’ fees (Note 5)	2,245
Auditing fees	32,181
Legal fees	8,463
Portfolio accounting fees	108,436
Distribution services fee (Note 5)	113,313
Other service fees (Notes 2 and 5)	148,813
Share registration costs	82,703
Printing and postage	46,072
Miscellaneous (Note 5)	32,789
TOTAL EXPENSES	3,053,974
Waivers and Reimbursements:
Waiver/reimbursement of investment adviser fee (Note 5)	(465,224)
Waiver/reimbursement of other operating expenses (Notes 2 and 5)	(57,225)
TOTAL WAIVERS AND REIMBURSEMENTS	(522,449)
Net expenses	2,531,525
Net investment income	625,150
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments (including net realized gain of $2,943 on sales of investments in an affiliated holding*)	3,605,272
Net change in unrealized appreciation of investments (including net change in unrealized depreciation of $24 on investments in an affiliated holding*)	(23,258,403)
Net realized and unrealized gain (loss) on investments	(19,653,131)
Change in net assets resulting from operations	$(19,027,981)

*	See information listed after the Fund’s Portfolio of Investments.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Changes in Net Assets

Year Ended September 30	2020	2019
Increase (Decrease) in Net Assets
Operations:
Net investment income	$625,150	$1,570,475
Net realized gain (loss)	3,605,272	(33,462,256)
Net change in unrealized appreciation/depreciation	(23,258,403)	(23,726,794)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS	(19,027,981)	(55,618,575)
Distributions to Shareholders:
Class A Shares	(217,697)	(13,650,057)
Class C Shares	—	(2,464,699)
Class R Shares	(49,102)	(2,584,571)
Institutional Shares	(1,272,052)	(53,544,277)
Class R6 Shares	(13,343)	(7,710,867)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS	(1,552,194)	(79,954,471)
Share Transactions:
Proceeds from sale of shares	41,292,956	78,460,676
Net asset value of shares issued to shareholders in payment of distributions declared	1,479,807	72,936,048
Cost of shares redeemed	(191,456,696)	(234,802,033)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS	(148,683,933)	(83,405,309)
Change in net assets	(169,264,108)	(218,978,355)
Net Assets:
Beginning of period	297,815,881	516,794,236
End of period	$128,551,773	$297,815,881

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Notes to Financial Statements

September 30, 2020

1. ORGANIZATION

Federated Hermes Equity Funds (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 9 portfolios. The financial statements included herein are only those of Federated Hermes Clover Small Value 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 five classes of shares: Class A Shares, Class C Shares, Class R 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 seek capital appreciation.

Prior to June 29, 2020, the name of the Trust and Fund was Federated Equity Funds and Federated Clover Small Value Fund, respectively.

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.

■

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

■

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 asked quotations.

■

Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

■

For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, 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.

Annual Shareholder Report

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 Fund’s valuation policies and procedures, or if information furnished by a pricing service, in the opinion of the 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

The Trustees have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Trustees have appointed a Valuation Committee comprised of officers of the Fund, Federated Equity Management Company of Pennsylvania (the “Adviser”) and certain of the Adviser’s affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee 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-party pricing 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 Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and 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 asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. 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 Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation

Annual Shareholder Report

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 Trustees have 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 Fund will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Trustees. The Trustees have ultimate responsibility for any fair valuations made in response to a significant event.

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. 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.

Annual Shareholder Report

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, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Amortization/accretion of premium and discount is included in investment income. 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 waivers and reimbursements of $522,449 is disclosed in various locations in this Note 2 and Note 5. For the year ended September 30, 2020, transfer agent fees for the Fund were as follows:

	Transfer Agent Fees Incurred	Transfer Agent Fees Reimbursed
Class A Shares	$51,953	$(1,721)
Class C Shares	10,231	(978)
Institutional Shares	172,795	(26,488)
Class R Shares	11,173	—
Class R6 Shares	1,183	—
TOTAL	$247,335	$(29,187)

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.

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 and Class C Shares 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 September 30, 2020, other service fees for the Fund were as follows:

	Other Service Fees Incurred
Class A Shares	$129,793
Class C Shares	19,020
TOTAL	$148,813

Federal Taxes

It is the Fund’s policy to comply with the Subchapter M provision of the Internal Revenue Code (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 September 30, 2020, the Fund did not have a liability for any

Annual Shareholder Report

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 September 30, 2020, tax years 2017 through 2020 remain subject to examination by the Fund’s major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

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 fiscal period end, resulting from changes in the exchange rate.

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.

Annual Shareholder Report

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Year Ended 9/30/2020		Year Ended 9/30/2019
Class A Shares:	Shares	Amount	Shares	Amount
Shares sold	401,853	$6,792,152	483,781	$9,425,555
Shares issued to shareholders in payment of distributions declared	10,372	214,593	682,955	13,086,019
Shares redeemed	(997,857)	(17,551,781)	(1,492,704)	(30,271,181)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	(585,632)	$(10,545,036)	(325,968)	$(7,759,607)
	Year Ended 9/30/2020		Year Ended 9/30/2019
Class C Shares:	Shares	Amount	Shares	Amount
Shares sold	99,430	$1,566,290	89,899	$1,652,787
Shares issued to shareholders in payment of distributions declared	—	—	132,754	2,374,981
Shares redeemed	(266,902)	(4,282,376)	(336,073)	(6,309,531)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	(167,472)	$(2,716,086)	(113,420)	$(2,281,763)
	Year Ended 9/30/2020		Year Ended 9/30/2019
Class R Shares:	Shares	Amount	Shares	Amount
Shares sold	108,599	$1,765,742	130,794	$2,597,618
Shares issued to shareholders in payment of distributions declared	2,420	49,028	135,548	2,544,624
Shares redeemed	(261,067)	(4,597,359)	(157,492)	(3,108,529)
NET CHANGE RESULTING FROM CLASS R SHARE TRANSACTIONS	(150,048)	$(2,782,589)	108,850	$2,033,713
	Year Ended 9/30/2020		Year Ended 9/30/2019
Institutional Shares:	Shares	Amount	Shares	Amount
Shares sold	1,732,256	$28,971,602	3,070,873	$61,904,839
Shares issued to shareholders in payment of distributions declared	58,155	1,203,816	2,459,600	47,274,603
Shares redeemed	(8,682,700)	(159,668,332)	(7,570,410)	(149,669,408)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	(6,892,289)	$(129,492,914)	(2,039,937)	$(40,489,966)

Annual Shareholder Report

	Year Ended 9/30/2020		Year Ended 9/30/2019
Class R6 Shares:	Shares	Amount	Shares	Amount
Shares sold	130,351	$2,197,170	143,690	$2,879,877
Shares issued to shareholders in payment of distributions declared	597	12,370	399,937	7,655,821
Shares redeemed	(292,030)	(5,356,848)	(2,258,724)	(45,443,384)
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS	(161,082)	$(3,147,308)	(1,715,097)	$(34,907,686)
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS	(7,956,523)	$(148,683,933)	(4,085,572)	$(83,405,309)

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 an overdistribution of income necessary to meet excise tax distribution requirements.

For the year ended September 30, 2020, permanent differences identified and reclassified among the components of net assets were as follows:

Increase (Decrease)
Paid-In Capital	Total Distributable Earnings (Loss)
$(1,587)	$1,587

The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended September 30, 2020 and 2019, was as follows:

	2020	2019
Ordinary income	$1,552,194	$20,905,357
Long-term capital gains	$—	$59,049,114

As of September 30, 2020, the components of distributable earnings on a tax-basis were as follows:

Net unrealized appreciation	$1,419,663
Capital loss carryforwards and deferrals	$(26,385,348)

The difference between book-basis and tax-basis net unrealized appreciation is attributable to differing treatments for the deferral of losses on wash sales.

At September 30, 2020, the cost of investments for federal tax purposes was $131,367,837. The net unrealized appreciation of investments for federal tax purposes was $1,419,665. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $13,725,819 and net unrealized depreciation from investments for those securities having an excess of cost over value of $12,306,154.

Annual Shareholder Report

As of September 30, 2020, the Fund had a capital loss carryforward of $26,362,261 which will reduce the Fund’s taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, 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.

The following schedule summarizes the Fund’s capital loss carryforwards:

Short-Term	Long-Term	Total
$18,044,548	$8,317,713	$26,362,261

The Fund used capital loss carryforwards of $6,253,559 to offset capital gains realized during the year ended September 30, 2020.

Under current tax rules, a late-year ordinary loss may be deferred, in whole or in part, and treated as occurring on the first day of the following fiscal year. As of September 30, 2020, for federal income tax purposes, a late year ordinary loss of $23,087 was deferred to October 1, 2020.

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 the year ended September 30, 2020, the Adviser voluntarily waived $461,666 of its fee and voluntarily reimbursed $29,187 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 September 30, 2020, the Adviser reimbursed $3,558.

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 September 30, 2020, 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.

Annual Shareholder Report

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, Class C Shares and Class R 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%
Class R Shares	0.50%

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 September 30, 2020, distribution services fees for the Fund were as follows:

	Distribution Services Fees Incurred	Distribution Services Fees Waived
Class C Shares	$57,238	$—
Class R Shares	56,075	(28,038)
TOTAL	$113,313	$(28,038)

When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the year ended September 30, 2020, FSC retained $4,368 of fees paid by the Fund. For the year ended September 30, 2020, 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 (CDSC) 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 September 30, 2020, FSC retained $971 in sales charges from the sale of Class A Shares.

Other Service Fees

For the year ended September 30, 2020, FSSC received $7,619 of the other service fees disclosed in Note 2.

Expense Limitation

Annual Shareholder Report

(a) December 1, 2021; 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 agreement 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 September 30, 2020, were as follows:

Purchases	$194,253,832
Sales	$338,615,347

7. CONCENTRATION OF RISK

A substantial part of the Fund’s portfolio may be comprised of entities in the financial 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 24, 2020. 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 the highest, on any day, of (a) (i) the federal funds effective rate, (ii) the one month London Interbank Offered Rate (LIBOR), or a replacement rate as appropriate, and (iii) 0.0%, plus (b) a margin. Any fund eligible to borrow under the LOC pays its pro rata share of an upfront fee, and 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 September 30, 2020, the Fund had no outstanding loans. During the year ended September 30, 2020, the Fund did not utilize the LOC.

Annual Shareholder Report

9. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, 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 September 30, 2020, there were no outstanding loans. During the year ended September 30, 2020, the program was not utilized.

10. OTHER MATTERS

An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread globally. As of the date of the issuance of these financial statements, this coronavirus has resulted in closing borders, enhanced health screenings, healthcare service preparation and delivery, quarantines, cancellations, and disruptions to supply chains, workflow operations and consumer activity, as well as general concern and uncertainty. The impact of this coronavirus may be short-term or may last for an extended period of time and has resulted in a substantial economic downturn. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic risks. The impact of this outbreak, and other epidemics and pandemics that may arise in the future, could continue to negatively affect the worldwide economy, as well as the economies of individual countries, individual companies (including certain Fund service providers and issuers of the Fund’s investments) and the markets in general in significant and unforeseen ways. Any such impact could adversely affect the Fund’s performance.

11. FEDERAL TAX INFORMATION (UNAUDITED)

For the fiscal year ended September 30, 2020, 100.00% 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.

Of the ordinary income distributions made by the Fund during the year ended September 30, 2020, 100.00% qualify for the dividend received deduction available to corporate shareholders.

Annual Shareholder Report

Report of Independent Registered Public Accounting Firm

TO THE BOARD OF TRUSTEES OF Federated Hermes Equity Funds AND SHAREHOLDERS OF Federated Hermes Clover Small Value Fund:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Federated Hermes Clover Small Value Fund (formerly, Federated Clover Small Value Fund) (the “Fund”), a portfolio of Federated Hermes Equity Funds (formerly, Federated Equity Funds), as of September 30, 2020, 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 September 30, 2020, 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.

Annual Shareholder Report

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 September 30, 2020, by correspondence with the custodian. 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 of one or more of Federated Hermes’ investment companies since 2006.

Boston, Massachusetts
November 23, 2020

Annual Shareholder Report

Shareholder Expense Example (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from April 1, 2020 to September 30, 2020.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Annual Shareholder Report

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase or redemption payments. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

	Beginning Account Value 4/1/2020	Ending Account Value 9/30/2020	Expenses Paid During Period1
Actual:
Class A Shares	$1,000	$1,273.30	$7.16
Class C Shares	$1,000	$1,267.80	$11.57
Class R Shares	$1,000	$1,273.00	$6.99
Institutional Shares	$1,000	$1,273.60	$5.74
Class R6 Shares	$1,000	$1,274.10	$5.34
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,018.70	$6.36
Class C Shares	$1,000	$1,014.80	$10.28
Class R Shares	$1,000	$1,018.85	$6.21
Institutional Shares	$1,000	$1,019.95	$5.10
Class R6 Shares	$1,000	$1,020.30	$4.75

1	Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half-year period). The annualized net expense ratios are as follows:

Class A Shares	1.26%
Class C Shares	2.04%
Class R Shares	1.23%
Institutional Shares	1.01%
Class R6 Shares	0.94%

Annual Shareholder Report

Board of Trustees and Trust Officers

The Board of Trustees is responsible for managing the Trust’s business affairs and for exercising all the Trust’s powers except those reserved for the shareholders. The following tables give information about each Trustee and the senior officers of the Fund. Where required, the tables separately list Trustees who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). Unless otherwise noted, the address of each person listed is 1001 Liberty Avenue, Pittsburgh, PA 15222. The address of all Independent Trustees listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2019, the Trust comprised nine portfolio(s), and the Federated Hermes Fund Family consisted of 41 investment companies (comprising 135 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Trustee oversees all portfolios in the Federated Hermes Fund Family and serves for an indefinite term. The Fund’s Statement of Additional Information includes additional information about Trust Trustees and is available, without charge and upon request, by calling 1-800-341-7400.

Interested TRUSTEES Background

Name

Birth Date

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held and Previous Position(s)

J. Christopher Donahue*

Birth Date: April 11, 1949

President and Trustee

Indefinite Term

Began serving:

September 1999

Principal Occupations: Principal Executive Officer and President of

certain of the Funds in the Federated Hermes Fund Family; Director or

Trustee of the Funds in the Federated Hermes Fund Family; President,

Chief Executive Officer and Director, Federated Hermes, Inc.;

Chairman and Trustee, Federated Investment Management Company;

Trustee, Federated Investment Counseling; Chairman and Director,

Federated Global Investment Management Corp.; Chairman and

Trustee, Federated Equity Management Company of Pennsylvania;

Trustee, Federated Shareholder Services Company; Director,

Federated Services Company.

Previous Positions: President, Federated Investment Counseling;

President and Chief Executive Officer, Federated Investment

Management Company, Federated Global Investment Management

Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd.

Annual Shareholder Report

Name

Birth Date

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held and Previous Position(s)

John B. Fisher*

Birth Date: May 16, 1956

Trustee

Indefinite Term

Began serving: May 2016

Principal Occupations:Principal Executive Officer and President of

certain of the Funds in the Federated Hermes Fund Family; Director or

Trustee of certain of the Funds in the Federated Hermes Fund Family;

Vice President, Federated Hermes, Inc.; President, Director/Trustee

and CEO, Federated Advisory Services Company, Federated Equity

Management Company of Pennsylvania, Federated Global Investment

Management Corp., Federated Investment Counseling, Federated

Investment Management Company; President of some of the Funds in

the Federated Hermes Fund Family and Director, Federated Investors

Trust Company.

Previous Positions: President and Director of the Institutional Sales

Division of Federated Securities Corp.; President and Director of

Federated Investment Counseling; President and CEO of Passport

Research, Ltd.; Director, Edgewood Securities Corp.; Director,

Federated Services Company; Director, Federated Hermes, Inc.;

Chairman and Director, Southpointe Distribution Services, Inc. and

President, Technology, Federated Services Company.

Reasons for “interested” status: J. Christopher Donahue and John B. Fisher are interested due to their beneficial ownership of shares of Federated Hermes, Inc. and due to positions they hold with Federated Hermes, Inc. and its subsidiaries.

INDEPENDENT TRUSTEES Background

Name

Birth Date

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held, Previous Position(s) and Qualifications

John T. Collins

Birth Date: January 24, 1947

Trustee

Indefinite Term

Began serving:

October 2013

Principal Occupations: Director or Trustee of the Federated Hermes

Fund Family; formerly, Chairman and CEO, The Collins Group, Inc.

(a private equity firm) (Retired).

Other Directorships Held: Chairman of the Board of Directors,

Director, and Chairman of the Compensation Committee, KLX Energy

Services Holdings, Inc. (oilfield services); former Director of

KLX Corp. (aerospace).

Qualifications: Mr. Collins has served in several business and financial

management roles and directorship positions throughout his career.

Mr. Collins previously served as Chairman and CEO of The Collins

Group, Inc. (a private equity firm) and as a Director of KLX Corp.

Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins

previously served as Director and Audit Committee Member, Bank of

America Corp.; Director, FleetBoston Financial Corp.; and Director,

Beth Israel Deaconess Medical Center (Harvard University

Affiliate Hospital).

Annual Shareholder Report

Name Birth Date Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015	Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Director, Member of the Audit Committee, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association.
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green was appointed by the Supreme Court of Pennsylvania to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); Director, Catholic Charities, Pittsburgh; and Director CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; and Director and Chair, North Catholic High School, Inc.

Annual Shareholder Report

Name Birth Date Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Trustee Indefinite Term Began serving: January 1999	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant and Author. Other Directorships Held: None. Qualifications: Mr. Mansfield has served as a Marine Corps officer and in several banking, business management, educational roles and directorship positions throughout his long career. He remains active as a Management Consultant and Author.
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity and Director, The Golisano Children’s Museum of Naples, Florida. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber).
Madelyn A. Reilly Birth Date: February 2, 1956 Trustee Indefinite Term Began serving: November 2020	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Senior Vice President for Legal Affairs, General Counsel and Secretary of the Board of Trustees, Duquesne University. Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Director of Risk Management and Associate General Counsel, Duquesne University. Prior to her work at Duquesne University, Ms. Reilly served as Assistant General Counsel of Compliance and Enterprise Risk as well as Senior Counsel of Environment, Health and Safety, PPG Industries. Ms. Reilly also previously served as Chair of the Risk Management Committee for Holy Ghost Preparatory School, Philadelphia and Secretary and Chair of the Governance Committee, Oakland Catholic High School Board of Trustees, Pittsburgh.

Annual Shareholder Report

Name Birth Date Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Management Consultant; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CNX Resources Corporation (formerly known as CONSOL Energy Inc.); and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm).
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: January 1999	Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors).

Annual Shareholder Report

OFFICERS

Name Birth Date Address Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years and Previous Position(s)
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013	Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc.
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: January 2005	Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, Inc. in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc.
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015	Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement.

Annual Shareholder Report

Name

Birth Date

Address

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years

and Previous Position(s)

Stephen F. Auth

Birth Date:

September 13, 1956

101 Park Avenue

41st Floor

New York, NY 10178

CHIEF INVESTMENT OFFICER

Officer since: November 2002

Principal Occupations: Stephen F. Auth is Chief Investment Officer of

various Funds in the Federated Hermes Fund Family; Executive Vice

President, Federated Investment Counseling, Federated Global

Investment Management Corp. and Federated Equity Management

Company of Pennsylvania.

Previous Positions: Executive Vice President, Federated Investment

Management Company and Passport Research, Ltd. (investment

advisory subsidiary of Federated); Senior Vice President, Global

Portfolio Management Services Division; Senior Vice President,

Federated Investment Management Company and Passport Research,

Ltd.; Senior Managing Director and Portfolio Manager,

Prudential Investments.

Annual Shareholder Report

Evaluation and Approval of Advisory Contract–May 2020

Federated Clover Small Value Fund (the “Fund”)

(EFFECTIVE CLOSE OF BUSINESS ON JUNE 26, 2020, THE FUND’S NAME CHANGED TO FEDERATED HERMES CLOVER SMALL VALUE FUND)

At its meetings in May 2020 (the “May Meetings”), the Fund’s Board of Trustees (the “Board”), including a majority of those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (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 all of the information and factors believed to be relevant and appropriate on whether to continue the existing arrangements. 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 evaluation presenting on the topics discussed below. The Board considered the CCO’s independent written evaluation (the “CCO Fee Evaluation 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. The CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees. At the request of the Independent Trustees, the CCO Fee Evaluation Report followed the same general approach and covered the same topics as that of the report that had previously been delivered by the CCO in his capacity as “Senior Officer” prior to the elimination of the Senior Officer position in December 2017.

In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, 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 on behalf of the Independent Trustees encompassing a wide variety of topics. 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

Annual Shareholder Report

throughout the year and in between regularly scheduled meetings on particular matters as the need arose, as well as information specifically prepared in connection with the approval of the continuation of the Contract that was presented at the May Meetings.

The Board’s consideration of the Contract included review of materials and information covering the following matters, among others: the Adviser’s and sub-adviser’s investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund’s short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, and relative to the Fund’s particular investment program and a group of its peer funds and/or its benchmark, as appropriate) and comments on the reasons for the Fund’s performance; the Fund’s investment objectives; the Fund’s expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to a group of its peer funds), with due regard for contractual or voluntary expense limitations (if any); the use and allocation of brokerage commissions derived from trading the Fund’s portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial and other risks assumed by the Adviser in sponsoring and managing the Fund; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund’s relationship to the other funds advised by Federated Hermes (each, a “Federated Hermes Fund”), which include a comprehensive array of funds with different investment objectives, policies and strategies which are generally available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Hermes Funds and the Federated Hermes’ affiliates that service them (including communications from regulatory agencies), as well as Federated Hermes’ responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Hermes Funds and/or Federated Hermes may be responding to them. In addition, the Board received and considered information furnished by Federated Hermes on the impacts of the coronavirus (COVID-19) outbreak on Federated Hermes generally and the Fund in particular, including, among other information, the current and anticipated impacts on the management, operations and performance of the Fund. The Board noted that its evaluation process is evolutionary and that the criteria considered and the emphasis placed on relevant criteria may change in recognition of changing circumstances in the mutual fund marketplace.

The Board also considered judicial decisions concerning allegedly excessive investment advisory fees in determining to approve the Contract. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser’s fiduciary duty with respect to its receipt of

Annual Shareholder Report

compensation from a fund: (1) the nature and quality of the services provided by an adviser to a fund and its shareholders (including the performance of the fund, its benchmark, and comparable funds); (2) an adviser’s cost of providing the services (including the profitability to an adviser of providing advisory services to a fund); (3) the extent to which an adviser may realize “economies of scale” as a fund grows larger and, if such economies of scale exist, whether they have been shared with a fund and its shareholders or the family of funds; (4) any “fall-out” financial benefits that accrue to an adviser because of its relationship with a fund (including research services received from brokers that execute fund trades and any fees paid to affiliates of an adviser for services rendered to a fund); (5) comparative fee and expense structures (including a comparison of fees paid to an adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the 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 an adviser’s services and fees). The Board noted that the Securities and Exchange Commission (“SEC”) disclosure requirements regarding the basis for a fund board’s approval of the fund’s investment advisory contracts generally align with the factors listed above. The Board was aware of these factors and was guided by them in its review 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 Federated Hermes Funds. While individual members of the Board may have weighed certain factors differently, the Board’s determination to continue the Contract was based on a comprehensive consideration of all information provided to the Board throughout the year and specifically with respect to the continuation of the Contract. 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 Federated Hermes Funds family, but its approvals were made on a fund-by-fund basis.

Annual Shareholder Report

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 the Adviser and its affiliates dedicated to the Fund. In this regard, the Board evaluated, among other things, the Adviser’s personnel, experience and track record, as well as the financial resources and overall reputation of Federated Hermes and its willingness to invest in personnel and infrastructure that benefit the Federated Hermes Funds. The Board noted the significant acquisition of Hermes Fund Managers Limited by Federated Hermes in 2018, which has deepened the organization’s investment management expertise and capabilities and expanded the investment process for all of the Federated Hermes Funds to incorporate environmental, social and governance (“ESG”) factors and issuer engagement on ESG matters.

In addition, 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 the Adviser’s ability and experience in attracting and retaining qualified personnel to service the Fund. The Board noted the compliance program of the Adviser and the compliance-related resources devoted by the Adviser and its affiliates in support of the Fund’s obligations pursuant to Rule 38a-1 under the Investment Company Act of 1940, including the Adviser’s commitment to respond to rulemaking and other regulatory initiatives of the SEC such as the liquidity risk management program rules. In addition, the Board considered the response by the Adviser to recent market conditions and considered the overall performance of the Adviser in this context. The Fund’s ability to deliver competitive performance when compared to its Performance Peer Group (as defined below) was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund’s investment program. The Adviser’s ability to execute this program was one of the Board’s considerations in reaching a conclusion that the nature, extent and quality of the Adviser’s investment management and related services warrant the continuation of the Contract.

Fund Investment Performance

In evaluating the Fund’s investment performance, the Board considered performance results in light of the Fund’s investment objective, strategies and risks, as disclosed in the Fund’s prospectus. The Board also considered the Fund’s performance in light of the overall recent market conditions. The Board considered detailed investment reports on the Fund’s performance over different time periods that were provided to the Board throughout the year and in connection with the May Meetings and evaluated the Adviser’s analysis of the Fund’s performance for these time periods. The Board also reviewed comparative information regarding the performance of other mutual funds in the category of peer funds selected by Morningstar, Inc. (the “Morningstar”), an independent fund ranking organization (the “Performance Peer Group”), noting the CCO’s view that comparisons to fund peer groups may be helpful,

Annual Shareholder Report

though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases there may be differences in the funds’ objectives or investment management techniques, or the costs to implement the funds, even within the same Performance Peer Group.

The Fund’s performance fell below the median of the relevant Peer Group for the one-year, three-year and five-year periods covered by the CCO Fee Evaluation Report. 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.

Following such evaluation, and full deliberations, the Board concluded that the performance of the Fund supported renewal of the Contract.

Fund Expenses

While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board has found the use of such comparisons to be relevant to its deliberations. 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 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. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because such comparisons are believed to be more relevant. The Board considered that other mutual 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 investors. The Board noted that the range of their fees and expenses, therefore, appears to be a relevant indicator of what consumers 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 above the median of the relevant 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.

Annual Shareholder Report

For comparison, the Board received and considered information about the fees charged by Federated Hermes for providing advisory services to other types of clients with investment strategies similar to those of the Federated Hermes Funds, including non-mutual fund clients such as institutional separate accounts and third-party unaffiliated mutual funds for which the Adviser or its affiliates serve as sub-adviser. The Board noted the CCO’s conclusion that non-mutual fund clients are inherently different products due to the following differences, among others: (i) different types of targeted investors; (ii) different applicable laws and regulations; (iii) different legal structures; (iv) different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; (v) and 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, addressing different administrative responsibilities, and addressing different degrees of risk associated with management; and (vi) a variety of different costs. The Board also considered information regarding the differences in the nature of the services required for Federated Hermes to manage its proprietary mutual fund business versus managing a discrete pool of assets as a sub-adviser to another institution’s mutual fund, noting 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 mutual fund. The Board noted that the CCO did not consider the fees for providing advisory services to other types of clients to be determinative in judging the appropriateness of the Federated Hermes Funds’ advisory fees.

The Board considered the CCO’s view that the services, administrative responsibilities and risks associated with such relationships are quite different than serving as a primary adviser to a fund.

Following such evaluation, and full deliberations, the Board concluded that the fees and expenses of the Fund are reasonable and supported renewal of the Contract.

Profitability and Other Benefits

The Board also received financial information about Federated Hermes, including information regarding the compensation and ancillary (or “fall-out”) benefits Federated Hermes derived from its relationships with the Federated Hermes Funds. This information covered not only the fees under the Federated Hermes Funds’ investment advisory contracts, but also fees received by Federated Hermes’ affiliates for providing other services to the Federated Hermes Funds under separate contracts (e.g., for serving as the Federated Hermes Funds’ administrator and distributor). In this regard, the Board considered that certain of 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

Annual Shareholder Report

Rule 12b-1 plans or otherwise. The Board also received and considered information detailing any indirect benefit Federated Hermes may derive from its receipt of research services from brokers who execute portfolio trades for the Federated Hermes Funds. In addition, the Board considered the fact that, in order for the Federated Hermes Funds to be competitive in the marketplace, the Adviser and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to Federated Hermes Fund shareholders and/or reported to the Board their intention to do so in the future. Moreover, the Board received and considered regular reports from Federated Hermes throughout the year as to the institution, adjustment or elimination of these voluntary waivers and/or reimbursements.

The Board received and considered information furnished by Federated Hermes, as requested by the CCO, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the CCO and described to the Board. The Board considered the CCO’s view that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable, because a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated Hermes Fund and may produce unintended consequences. The allocation information, including the CCO’s view that fund-by-fund estimations may be unreliable, was considered in the evaluation by the Board. In addition, the Board considered that, during the prior year, an independent consultant conducted a review of 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. The Board noted the consultant’s view that, although there is no single best method to allocate expenses, the methodologies used by Federated Hermes are reasonable.

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 considered the CCO’s conclusion that, based on such profitability information, Federated Hermes’ profit margins did not appear to be excessive. The Board also considered the CCO’s view that Federated Hermes appeared financially sound, with the resources necessary to fulfill its obligations under its contracts with the Federated Hermes Funds.

Economies of Scale

Annual Shareholder Report

Board considered that the Adviser has made significant and long-term investments in areas that support all of the Federated Hermes Funds, such as personnel and processes for the portfolio management, trading operations, issuer engagement (including with respect to ESG matters), shareholder services, compliance, business continuity, internal audit and risk management functions, as well as systems technology (including technology relating to cybersecurity) and use of data. The Board noted that Federated Hermes’ investments in these areas are extensive and are designed to provide enhanced services to the Federated Hermes Funds and their shareholders. The Board considered that the benefits of these investments (as well as the benefits of any economies of scale, should they exist) are likely to be shared with the Federated Hermes Fund family as a whole. In addition, the Board considered that the Adviser and its affiliates have frequently waived fees and/or reimbursed expenses for the Federated Hermes Funds and that such waivers and 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. Federated Hermes, as it does throughout the year, and specifically in connection with the Board’s review of the Contract, furnished information relative to adviser-paid fees (commonly referred to as revenue sharing). The Board considered the beliefs of Federated Hermes and the CCO that this information should be viewed to determine if there was an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, and should not be viewed to determine the appropriateness of advisory fees. The Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as a fund attains a certain size.

Conclusions

The Board considered the CCO’s conclusion that his observations and the information accompanying the CCO Fee Evaluation Report show that the management fee for the Fund was reasonable and the CCO’s recommendation that the Board approve the management fee. The Board noted that, under these circumstances, no changes were recommended to, and no objection was raised to the continuation of, the Contract by the CCO. The CCO also recognized that the Board’s evaluation of the Federated Hermes Funds’ advisory and subadvisory arrangements is a continuing and on-going process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its on-going oversight of the Federated Hermes Funds.

Annual Shareholder Report

In its determination to continue an existing investment advisory contract, the Board was mindful of 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 an investment advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser’s industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board’s approval of the Contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors summarized above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the Contract was appropriate.

The Board based its determination to approve the Contract on the totality of the circumstances and relevant factors and with a view to 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. With respect to the factors that were deemed to be relevant, the Board’s determination to approve the continuation of the Contract reflects its view that Federated Hermes’ performance and actions provided a satisfactory basis to support the determination to continue the existing arrangement.

Annual Shareholder Report

Liquidity Risk Management Program– Annual Evaluation of Adequacy and Effectiveness

In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Federated Hermes Equity Funds (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) for Federated Hermes Clover Small Value Fund (the “Fund” and, collectively with the Federated Hermes funds, the “Federated Hermes Funds”). The Program seeks to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Board of Trustees of the Trust (the “Board”) has approved the designation of the Fund’s investment adviser as the administrator for the Program for the Fund. Each affiliated Federated Hermes advisory subsidiary (including the Fund’s investment adviser) that serves as investment adviser to a Federated Hermes Fund (including the Fund) has been approved as the administrator of the Program for each Federated Hermes Fund they manage (each an “Administrator”). The Administrator in turn has delegated daily responsibility for the administration of the Program to multiple Liquidity Risk Management Committees (the “Committees”). The Committees, which are comprised of representatives of Enterprise Risk Management, Compliance, Investment Management and Trading, must review and assess certain information related to the liquidity of the Federated Hermes Funds, including the Fund.

The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent a Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if a Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s highly liquid investments below its HLIM; and (6) periodic reporting to the Board.

At its meetings in May 2020, the Board received and reviewed a written report (the “Report”) from the Federated Hermes Funds’ Chief Compliance Officer and Chief Risk Officer, on behalf of the Administrator, concerning the operation of the Program for the period from the Program’s inception on December 1, 2018 through March 31, 2020 (the “Period”). The Report

Annual Shareholder Report

addressed the operation of the Program and assessed its adequacy and effectiveness, including, where applicable, the operation of any HLIM established for a Federated Hermes Fund and each Federated Hermes Fund’s access to other available funding sources such as the Federated Hermes Funds’ interfund lending facility, redemptions in-kind and committed lines of credit. There were no material changes to the Program during the Period. The Report summarized the operation of the Program and the information and factors considered by the Administrator in assessing whether the Program has been adequately and effectively implemented with respect to the Federated Hermes Funds. Such information and factors included, among other things:

■ confirmation that the Fund did not utilize alternative funding sources during the Period;

■ the periodic classifications of the Fund’s investments into one of four liquidity categories and the methodologies and inputs used to classify the investments, including the Fund’s reasonably anticipated trade size;

■ the analysis received from a third-party liquidity assessment vendor that is taken into account in the process of determining the liquidity classifications of the Fund’s investments and the results of an evaluation of the services performed by the vendor in support of this process;

■ the fact that the Fund invested primarily in highly liquid investments during the Period and, therefore, was not required to establish, and has not established, an HLIM and the procedures for monitoring the status of the Fund as investing primarily in highly liquid investments;

■ the fact that the Fund invested no more than 15% of its assets in illiquid investments during the Period and the procedures for monitoring this limit; and

■ liquidity events during the Period, including the impact on liquidity caused by extended non-U.S. market closures and the market disruptions resulting from the novel coronavirus outbreak, and the fact that there were no specific liquidity events during the Period that materially affected the Fund’s liquidity risk.

Based on this review, the Fund’s investment adviser, in its role as Administrator, collectively with the other investment advisers to the Federated Hermes Funds, concluded that the Program is operating effectively to assess and manage the Fund’s liquidity risk, and that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.

Annual Shareholder Report

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund’s portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at FederatedInvestors.com/FundInformation. Form N-PX filings are also sec.gov.

Quarterly Portfolio Schedule

Each fiscal quarter, the Fund will file with the SEC a complete schedule of its monthly portfolio holdings on “Form N-PORT.” The Fund’s holdings as of the end of the third month of every fiscal quarter, as reported on Form N-PORT, sec.gov within 60 days of the end of the fiscal quarter upon filing. You may also access this information FederatedInvestors.com.

Annual Shareholder Report

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 Report 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 Clover Small Value Fund
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561

Federated Securities Corp., Distributor

CUSIP 314172289
CUSIP 314172271
CUSIP 314172172
CUSIP 314172263
CUSIP 31421N808

41198 (11/20)

Annual Shareholder Report

September 30, 2020

Share Class | Ticker

A | BEARX

C | PBRCX

Institutional | PBRIX

Federated Hermes Prudent Bear Fund

(formerly, Federated Prudent Bear Fund)

Successor to the Prudent Bear Fund Established 1995

A Portfolio of Federated Hermes Equity Funds

(formerly, Federated Equity Funds)

IMPORTANT NOTICE REGARDING REPORT DELIVERY

Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee

J. Christopher
Donahue

President

Federated Hermes Prudent Bear Fund

Letter from the President

Dear Valued Shareholder,

I am pleased to present the Annual Shareholder Report for your fund covering the period from October 1, 2019 through September 30, 2020.

Thank you for investing with us. I hope you find this information useful and look forward to keeping you informed.

Sincerely,

J. Christopher Donahue, President

Management’s Discussion of Fund Performance (unaudited)

The total return of Federated Hermes Prudent Bear Fund (the “Fund”), based on net asset value for the 12-month reporting period ended September 30, 2020, was -19.15% for Class A Shares, -19.76% for Class C Shares and -18.97% for Institutional Shares. The total return of the Standard & Poor’s 500 Index (S&P 500),1 a broad-based securities market index, was 15.15% for the same period. The total return for the Fund’s market benchmark, the S&P 500 Inverse Daily Index (S&P 500 Inverse),2 was -21.35% for the same period. The total return of the Morningstar Bear Market Funds Average (MBMFA),3 a peer group average for the Fund, was -29.10%. The Fund’s and MBMFA’s total returns for the most recently completed fiscal year reflected actual cash flows, transaction costs and other expenses, which were not reflected in the total return of the S&P 500 or S&P 500 Inverse.

During the reporting period, the Fund’s performance relative to the S&P 500 Inverse was most affected by the positioning and strategy4 of the Fund.

The following discussion will focus on the performance of the Fund’s Institutional Shares relative to the S&P 500 Inverse.

MARKET OVERVIEW

During the reporting period, U.S. equity markets experienced significant volatility. In the fourth quarter of 2019, markets advanced on increasing trade agreement progress made between the U.S. and China. In the latter half of the first quarter of 2020, markets declined significantly as investors responded to the human and economic toll from the Coronavirus. In the second and third quarters of 2020, markets rebounded due to historic accommodation from global central banks as well as powerful global fiscal stimulus exceeding $10 trillion. The substantial outperformance of growth stocks in comparison to their value counterparts during the reporting period was noteworthy.

U.S. 10-year Treasury bond yields decreased materially for the reporting period from 1.66% at the start of the reporting period to 0.68% at the end of the reporting period. The decrease in 10-year yields was due primarily to the Federal Reserve’s decisions to decrease the federal funds target rate by 50 basis points in early March and then by an additional 100 basis points in mid-March in response to the Covid-19 pandemic.

The U.S. dollar depreciated during the reporting period with the U.S. Dollar Index5 declining 5.5%. Commodities were generally strong for the reporting period with the exception of crude oil. For the year ended September 30, 2020, Brent crude oil decreased 33%, natural gas rose 9%, and copper increased 18%. As global central banks displayed extraordinary accommodation, gold advanced 28% in the reporting period.

Annual Shareholder Report

Volatility in equity prices was relatively high for the bulk of the reporting period, as market declines due to the Covid-19 pandemic and market increases due to global fiscal and monetary stimulus led to significant movements in share prices. The CBOE Volatility Index® (VIX® Index)6 began the reporting period at 16, ended the reporting period at 26, and averaged approximately 26.

POSITIONING AND STRATEGY

The outperformance of the Fund versus the S&P 500 Inverse (the inverse of the total return of the S&P 500) for the reporting period was primarily due to the Fund’s positioning and strategy.

Total net short exposure varied between 80% and 110% throughout much of the reporting period. The Fund commenced the reporting period with net short exposure at approximately 89%. This was comprised of gross short equity exposure of 113% and gross long equity exposure of 24%. Throughout the reporting period, the Fund increased gross short equity exposure by 9% to 122% in the reporting period, and the Fund decreased gross long equity exposure by 10% to 14% in the reporting period, resulting in period-ending net short exposure of approximately 108%.

Throughout the reporting period, the Fund purchased and owned shares in equity securities that Fund management believed were trading below their intrinsic value and sold short equity securities that Fund management believed were trading at higher prices than were warranted. Additionally, the Fund utilized derivatives7 positions when appropriate throughout the reporting period.

Please see the footnote to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the S&P 500.

Please see the footnote to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the S&P 500 Inverse.

Please see the footnote to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the MBMFA.

The Fund regularly makes short sales of securities, which involves unlimited risk including the possibility that losses may exceed the original amount invested. The Fund may also use options and futures contracts, which have risks associated with unlimited losses of the underlying holdings due to unanticipated market movements and failure to correctly predict the direction of securities prices, interest rates and currency exchange rates. However, a mutual fund investor’s risk is limited to the amount of investment in a mutual fund. The Fund may also hold restricted securities purchased through private placements. Such securities may be difficult to sell without experiencing delays or additional costs. Please see the Prospectus for further details. Considering the increased risks, the Fund may not be suitable for all investors.

The U.S. Dollar Index indicates the general international value of the U.S. dollar by averaging the exchange rates between the U.S. dollar and six major world currencies.*

The CBOE Volatility Index® (VIX® Index) is a leading measure of market expectations of near-term volatility conveyed by S&P 500 Index (SPX) option prices.*

The Fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments.

The index is unmanaged, and it is not possible to invest directly in an index.

Annual Shareholder Report

FUND PERFORMANCE AND GROWTH OF A $10,000 INVESTMENT

The graph below illustrates the hypothetical investment of $10,0001 in the Federated Hermes Prudent Bear Fund from September 30, 2010 to September 30, 2020, compared to the Standard & Poor’s 500 Index (S&P 500),2 S&P 500 Inverse Daily Index (S&P 500 Inverse) 3 and the Morningstar Bear Market Funds Average (MBMFA).4 The Average Annual Total Return table below shows returns for each class averaged over the stated periods.

Growth of $10,000 as of September 30, 2020

■ Total returns shown for Class C Shares include the maximum contingent deferred sales charge of 1.00% as applicable.

■ Total returns shown for Class A Shares include the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450).

The Fund offers multiple share classes whose performance may be greater than or less than its other share class(es) due to differences in sales charges and expenses.

Average Annual Total Returnsfor the Period Ended 9/30/2020

(returns reflect all applicable sales charges and contingent deferred sales charges as specified below in footnote #1).

	1 Year	5 Years	10 Years
Class A Shares	-23.60%	-15.79%	-15.35%
Class C Shares	-20.57%	-15.46%	-15.51%
Institutional Shares	-18.97%	-14.56%	-14.66%
S&P 500	15.15%	14.15%	13.74%
S&P 500 Inverse	-21.35%	-13.55%	-13.57%
MBMFA4	-29.10%	-22.40%	-21.30%

Annual Shareholder Report

Represents a hypothetical investment of $10,000 in the Fund after deducting applicable sales charges: For Class A Shares, the maximum sales charge is 5.50%; for Class C Shares, the maximum contingent deferred sales charge is 1.00% on any redemption less than one year from the purchase date. The Fund’s performance assumes the reinvestment of all dividends and distributions. The S&P 500, S&P 500 Inverse and MBMFA have been adjusted to reflect reinvestment of dividends on securities in the indexes and average.

The S&P 500 is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The S&P 500 is not adjusted to reflect taxes, sales charges, expenses or other fees that the Securities and Exchange Commission (SEC) requires to be reflected in the Fund’s performance. The S&P 500 is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.

The S&P 500 Inverse is designed to provide the inverse performance of the S&P 500, representing a short position in the index. The S&P 500 Inverse is not adjusted to reflect taxes, sales charges, expenses or other fees that the SEC requires to be reflected in the Fund’s performance. The S&P 500 Inverse is unmanaged and, unlike the Fund, are not affected by cash flows. It is not possible to invest directly in an index.

Annual Shareholder Report

At September 30, 2020, the Fund’s sector composition5 for its short positions was as follows:

Sector Composition	Percentage of Total Securities Sold Short6
Broad Equity Index	94.5%
Information Technology	0.9%
Financials	0.9%
Consumer Discretionary	0.8%
Health Care	0.7%
Industrials	0.6%
Consumer Staples	0.4%
Energy	0.3%
Communication Services	0.3%
Real Estate	0.3%
Materials	0.2%
Utilities	0.1%
TOTAL	100%

1	Derivative contracts may consist of futures, forwards, written options and swaps. More complete information regarding the Fund’s direct investments in derivative contracts, including unrealized appreciation (deprecation), value and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report.
2	Other Security Type consists of purchased put options.
3	Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements.
4	Assets, other than investments in securities, securities sold short, derivative contracts and collateral on deposit for securities sold short, less liabilities. See Statement of Assets and Liabilities.
5	Sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS.
6	Includes any short positions on futures contracts.

Annual Shareholder Report

Portfolio of Investments

September 30, 2020

Shares, Principal Amount or Contracts			Value
		U.S. TREASURY— 27.1%
		U.S. Treasury Bills— 27.1%
$ 73,000,000	1,2	United States Treasury Bill, 0.157%, 1/7/2021 (IDENTIFIED COST $72,968,702)	$72,980,290
		COMMON STOCKS— 12.6%
		Communication Services— 0.9%
400	3	Alphabet, Inc., Class A	586,240
2,000	3	Electronic Arts, Inc.	260,820
1,200	3	Facebook, Inc.	314,280
60,000		Sirius XM Radio, Inc.	321,600
10,000		Verizon Communications, Inc.	594,900
12,000		Warner Music Group	344,880
		TOTAL	2,422,720
		Consumer Discretionary— 0.9%
10,000		eBay, Inc.	521,000
20,000	3	Kura Sushi USA, Inc.	262,000
12,000		Levi Strauss & Co.	160,800
4,000		McDonald’s Corp.	877,960
2,600		Starbucks Corp.	223,392
18,000	3	Vasta Platform Ltd.	277,740
9,000	3	XPeng, Inc., ADR	180,630
		TOTAL	2,503,522
		Consumer Staples— 1.7%
120,000	3	Albertsons Cos., Inc.	1,662,000
36,000	3	Bellring Brands, Inc.	746,640
12,000	3	Jde Peet’s B.V.	488,176
10,000		Kroger Co.	339,100
12,000		Philip Morris International, Inc.	899,880
3,000		Procter & Gamble Co.	416,970
		TOTAL	4,552,766
		Energy— 0.1%
4,000		Chevron Corp.	288,000
		Financials— 2.1%
8,000		Citigroup, Inc.	344,880
72,000	3	GoHealth, Inc.	937,800
2,000		Goldman Sachs Group, Inc.	401,940
6,000		MetLife, Inc.	223,020

Annual Shareholder Report

Shares, Principal Amount or Contracts			Value
		COMMON STOCKS— continued
		Financials— continued
90,000	3	Oportun Financial Corp.	$1,061,100
60,000	3	ProSight Global, Inc.	680,400
24,000	3	SelectQuote, Inc.	486,000
30,000	3	Silvergate Capital Corp.	432,000
12,000	3	StepStone Group, Inc.	319,320
36,000	3	Trean Insurance Group, Inc.	549,000
32,000	3	Velocity Financial, LLC	160,640
		TOTAL	5,596,100
		Health Care— 2.1%
6,000	3	Akouos, Inc.	137,220
3,000	3	Alexion Pharmaceuticals, Inc.	343,290
3,000	3	Alx Oncology Holdings, Inc.	113,220
3,000		AmerisourceBergen Corp.	290,760
1,400		Amgen, Inc.	355,824
600	3	Biogen, Inc.	170,208
30,000	3	Checkmate Pharmaceuticals, Inc.	345,300
5,000	3	Exelixis, Inc.	122,250
12,000	3	Freeline Therapeutics Holdings PLC, ADR	187,320
24,000	3	Frequency Therapeutics, Inc.	461,040
36,000	3	Genetron Holdings Ltd., ADR	429,840
2,600		Gilead Sciences, Inc.	164,294
6,000	3	Inmode Ltd.	217,080
2,000		Johnson & Johnson	297,760
18,000	3	Lyra Therapeutics, Inc.	201,240
3,000		Merck & Co., Inc.	248,850
27,000	3	PolyPid Ltd.	297,270
55,523	3	Progenity, Inc.	500,817
28,000	3	Progyny, Inc.	824,040
		TOTAL	5,707,623
		Industrials— 1.9%
4,000		Alaska Air Group, Inc.	146,520
12,000	3	Dun & Bradstreet Holdings, Inc.	307,920
2,000		Eaton Corp. PLC	204,060
3,000	3	FTI Consulting, Inc.	317,910
36,000		GFL Environmental, Inc.	765,360
72,000	3	IBEX LTD.	1,107,360
1,000		Lockheed Martin Corp.	383,280
18,835	3	Montrose Environmental Group, Inc.	448,650

Annual Shareholder Report

Shares, Principal Amount or Contracts			Value
		COMMON STOCKS— continued
		Industrials— continued
1,000		Northrop Grumman Corp.	$315,490
20,000	3	Parsons Corp.	670,800
5,000		Raytheon Technologies Corp.	287,700
4,000		Southwest Airlines Co.	150,000
		TOTAL	5,105,050
		Information Technology— 2.1%
3,000	3	Akamai Technologies, Inc.	331,620
2,947	3	Bentley Systems, Inc.	92,536
800		Broadcom, Inc.	291,456
12,000		Cisco Systems, Inc.	472,680
48,000	3	Corsair Gaming, Inc.	964,800
8,000		FLIR Systems, Inc.	286,800
5,000		IBM Corp.	608,350
6,000	3	Jamf Holding Corp.	225,660
2,000	3	Keysight Technologies, Inc.	197,560
1,000		Microsoft Corp.	210,330
50,000		Nokia Oyj, ADR, Class A	195,500
6,000	3	Nuvei Corp.	253,320
6,000		Open Text Corp.	253,440
6,000		Oracle Corp.	358,200
40,000	3	Palantir Technologies, Inc.	380,000
2,000		Qualcomm, Inc.	235,360
6,000	3	Sumo Logic, Inc.	130,800
6,000	3	Vertex, Inc.	138,000
		TOTAL	5,626,412
		Materials— 0.6%
5,000		CF Industries Holdings, Inc.	153,550
2,000		Eagle Materials, Inc.	172,640
80,000	3	Sprott Physical Gold Trust	1,204,000
		TOTAL	1,530,190
		Real Estate— 0.1%
2,000		Crown Castle International Corp.	333,000
		Utilities— 0.1%
10,000		FirstEnergy Corp.	287,100
		TOTAL COMMON STOCKS (IDENTIFIED COST $35,498,216)	33,952,483
		PURCHASED PUT OPTIONS— 1.0%
3,000	3	SPDR S&P 500 ETF Trust, Notional Amount $100,467,000, Exercise Price $180.00, Expiration Date 6/18/2021	603,000

Annual Shareholder Report

Shares, Principal Amount or Contracts			Value
		PURCHASED PUT OPTIONS— continued
600	3	SPDR S&P 500 ETF Trust, Notional Amount $20,093,400, Exercise Price $200.00, Expiration Date 12/17/2021	$315,600
600	3	SPDR S&P 500 ETF Trust, Notional Amount $20,093,400, Exercise Price $280.00, Expiration Date 11/20/2020	117,900
800	3	SPDR S&P 500 ETF Trust, Notional Amount $26,791,200, Exercise Price $305.00, Expiration Date 10/16/2020	70,000
1,800	3	SPDR S&P 500 ETF Trust, Notional Amount $60,280,200, Exercise Price $160.00, Expiration Date 6/18/2021	245,700
1,800	3	SPDR S&P 500 ETF Trust, Notional Amount $60,280,200, Exercise Price $250.00, Expiration Date 12/18/2020	290,700
1,800	3	SPDR S&P 500 ETF Trust, Notional Amount $60,280,200, Exercise Price $310.00, Expiration Date 10/16/2020	226,800
2,400	3	SPDR S&P 500 ETF Trust, Notional Amount $80,373,600, Exercise Price $200.00, Expiration Date 6/18/2021	729,600
		TOTAL PURCHASED PUT OPTIONS (IDENTIFIED COST $5,997,012)	2,599,300
		EXCHANGE-TRADED FUNDS— 0.8%
4,000		Health Care Select Sector SPDR Fund	421,920
30,000		Utilities Select Sector SPDR Fund	1,781,400
		TOTAL EXCHANGE-TRADED FUNDS (IDENTIFIED COST $2,169,275)	2,203,320
		INVESTMENT COMPANY— 59.1%
159,462,830		Federated Hermes Government Obligations Fund, Premier Shares, 0.04%4 (IDENTIFIED COST $159,462,830)	159,462,830
		TOTAL INVESTMENT IN SECURITIES—100.6% (IDENTIFIED COST $276,096,035)5	271,198,223
		OTHER ASSETS AND LIABILITIES - NET—(0.6)%6	(1,582,255)
		TOTAL NET ASSETS—100%	$269,615,968

SECURITIES SOLD SHORT—(65.0)%

Shares		Value
	Broad Equity Index— (58.8)%
20,000	Invesco QQQ Trust Series 1	$5,556,800
165,000	iShares FTSE/Xinhua China 25	6,930,000
33,000	iShares MSCI Emerging Markets ETF	1,454,970
30,500	iShares Russell 2000 ETF	4,568,595
418,000	S&P Depositary Receipts Trust	139,984,020
	TOTAL	158,494,385
	Communication Services— (0.4)%
8,500	DISH Network Corp., Class A	246,755
550	Netflix, Inc.	275,017

Annual Shareholder Report

Shares		Value
	Communication Services— continued
8,000	TripAdvisor, Inc.	$156,720
12,000	ViacomCBS Inc., Class B	336,120
	TOTAL	1,014,612
	Consumer Discretionary— (0.9)%
1,600	Expedia Group, Inc.	146,704
1,400	Five Below, Inc.	177,800
20,000	Ford Motor Co.	133,200
10,000	General Motors Co.	295,900
5,400	Hyatt Hotels Corp.	288,198
4,000	L Brands, Inc.	127,240
5,000	Las Vegas Sands Corp.	233,300
12,000	Nordstrom, Inc.	143,040
9,000	Norwegian Cruise Line Holdings Ltd.	153,990
2,900	Royal Caribbean Cruises, Ltd.	187,717
3,300	ServiceMaster Global Holdings, Inc.	131,604
4,000	V.F. Corp.	281,000
	TOTAL	2,299,693
	Consumer Staples— (0.4)%
3,000	Bunge Ltd.	137,100
2,500	Hormel Foods Corp.	122,225
700	McCormick & Co., Inc.	135,870
2,300	PepsiCo, Inc.	318,780
5,000	The Coca-Cola Co.	246,850
2,000	Tyson Foods, Inc., Class A	118,960
6,000	US Foods Holding Corp.	133,320
	TOTAL	1,213,105
	Energy— (0.4)%
3,000	Cheniere Energy, Inc.	138,810
12,000	Exxon Mobil Corp.	411,960
6,500	Marathon Petroleum Corp.	190,710
6,000	Occidental Petroleum Corp.	60,060
8,500	ONEOK, Inc.	220,830
	TOTAL	1,022,370
	Financials— (1.0)%
210	Alleghany Corp.	109,295
3,500	Axis Capital Holdings Ltd.	154,140
1,500	Berkshire Hathaway, Inc., Class B	319,410
1,800	Capital One Financial Corp.	129,348
2,200	Cincinnati Financial Corp.	171,534
800	Credit Acceptance Corp.	270,912
2,000	Cullen Frost Bankers, Inc.	127,900
500	LendingTree, Inc.	153,445

Annual Shareholder Report

Shares		Value
	Financials— continued
5,000	Loews Corp.	$173,750
460	Markel Corp.	447,902
4,500	TCF Financial Corp.	105,120
6,000	Truist Financial Corp.	228,300
10,000	Umpqua Holdings Corp.	106,200
125	White Mountains Insurance Group, Inc.	97,375
	TOTAL	2,594,631
	Health Care— (0.8)%
7,000	Boston Scientific Corp.	267,470
5,000	Bruker Corp.	198,750
1,200	Catalent, Inc.	102,792
700	Cooper Cos., Inc.	235,984
9,000	Elanco Animal Health, Inc.	251,370
2,300	Encompass Health Corp.	149,454
400	Intuitive Surgical, Inc.	283,816
1,400	Stryker Corp.	291,718
300	Teleflex, Inc.	102,126
900	Thermo Fisher Scientific, Inc.	397,368
	TOTAL	2,280,848
	Industrials— (0.7)%
850	AMERCO	302,583
9,000	American Airlines Group, Inc.	110,610
12,000	Industrial Select Sector SPDR Fund	923,760
1,900	Middleby Corp.	170,449
4,500	Textron Inc.	162,405
3,000	Toro Co.	251,850
	TOTAL	1,921,657
	Information Technology— (1.0)%
500	Ansys, Inc.	163,615
1,150	Automatic Data Processing, Inc.	160,413
1,700	Ceridian HCM Holding, Inc.	140,505
3,900	Cree, Inc.	248,586
2,200	Dell Technologies, Inc.	148,918
2,700	Dolby Laboratories, Class A	178,956
1,500	Fastly, Inc.	140,520
1,400	Guidewire Software, Inc.	145,978
8,500	Juniper Networks, Inc.	182,750
4,500	National Instruments Corp.	160,650
8,700	NortonLifeLock, Inc.	181,308
2,300	Paychex, Inc.	183,471
450	Paycom Software, Inc.	140,085
1,000	Square, Inc.	162,550

Annual Shareholder Report

Shares		Value
	Information Technology— continued
500	Twilio, Inc.	$123,545
600	Tyler Technologies, Inc.	209,136
	TOTAL	2,670,986
	Materials— (0.2)%
10,000	Materials Select Sector SPDR Fund	636,400
	Real Estate— (0.3)%
4,400	Equity Commonwealth	117,172
1,500	Federal Realty Investment Trust	110,160
2,500	SL Green Realty Corp.	115,925
4,500	STORE Capital Corp.	123,435
3,200	Taubman Centers, Inc.	106,528
36,000	VEREIT, Inc.	234,000
	TOTAL	807,220
	Utilities— (0.1)%
1,400	Atmos Energy Corp.	133,826
2,600	Edison International	132,184
1,700	Xcel Energy, Inc.	117,317
	TOTAL	383,327
	Total Securities Sold Short (PROCEEDS $133,282,463)	$175,339,234

At September 30, 2020, the Fund had the following outstanding futures contracts:

Description	Number of Contracts	Notional Value	Expiration Date	Value and Unrealized Depreciation
Short Futures:
3Nasdaq 100 E-Mini Short Futures	145	$33,081,025	December 2020	$(1,039,773)
3S&P 500 E-Mini Short Futures	570	$95,532,000	December 2020	$(302,624)
NET UNREALIZED DEPRECIATION ON FUTURES CONTRACTS				$(1,342,397)

Net Unrealized Depreciation on Futures Contracts and on the Value of Securities Sold Short is included in “Other Assets and Liabilities—Net.”

Annual Shareholder Report

Change in Unrealized Appreciation/ Depreciation	Net Realized Gain/ (Loss)	Value as of 9/30/2020	Shares Held as of 9/30/2020	Dividend Income

$35,220	$74,511	$137,220	6,000	$—
$(39,262)	$249,577	$461,040	24,000	$—
$(4,042)	$324,088	$598,260	30,000	$—

Affiliated fund holdings are investment companies which are managed by Federated Equity Management Company of Pennsylvania (the “Adviser”) or an affiliate of the Adviser. Transactions with affiliated fund holdings during the period ended September 30, 2020, were as follows:

	Federated Hermes Government Obligations Fund, Premier Shares
Value as of 9/30/2019	$56,671,448
Purchases at Cost	$778,775,175
Proceeds from Sales	$(675,983,793)
Change in Unrealized Appreciation/Depreciation	N/A
Net Realized Gain/(Loss)	N/A
Value as of 9/30/2020	$159,462,830
Shares Held as of 9/30/2020	159,462,830
Dividend Income	$600,002

The Fund invests in Federated Hermes Government Obligations Fund (GOF), a diversified portfolio of Federated Hermes Money Market Obligations Trust (MMOT) which is also managed by the Adviser. MMOT is an open-end management investment company, registered under the Investment Company Act of 1940, as amended. The investment objective of GOF is to provide current income consistent with stability of principal. GOF operates as a government money market fund. As a government money market fund, GOF: (1) invests at least 99.5% of its total assets in: (i) cash; (ii) securities issued or guaranteed by the United States or certain U.S. government agencies or instrumentalities; and/or (iii) repurchase agreements that are collateralized fully; (2) generally continues to use amortized cost to value its portfolio securities and transact at a stable $1.00 net asset value (NAV); and (3) has elected not to be subject to the liquidity fees and gates requirement at this time as permitted by Rule 2a-7 under the Act. Income distributions from GOF are declared daily and paid monthly. All income distributions are recorded by the Fund as dividend income. Capital gain distributions of GOF, if any, are declared and paid annually, and are recorded by the Fund as capital gains received. At September 30, 2020, GOF represents 59.1%% of the Fund’s net

Annual Shareholder Report

assets. Therefore, the performance of the Fund is directly affected by the performance of GOF. A copy of GOF’s financial statements is available on the EDGAR Database on the SEC’s website or upon request from the Fund.

1	All or a portion of this security is pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding short futures and securities sold short contracts.
2	Discount rate at time of purchase.
3	Non-income-producing security.
4	7-day net yield.
5	The cost of investments for federal tax purposes amounts to $283,056,989.
6	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. A significant portion of this balance represents loans to unaffiliated qualified brokers for securities lending. The Fund receives cash from the broker as collateral for the loaned securities and reinvests the collateral in certain short-term securities such as repurchase agreements or money market mutual funds.

Note: The categories of investments are shown as a percentage of total net assets at September 30, 2020.

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 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 Shareholder Report

The following is a summary of the inputs used, as of September 30, 2020, 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
Debt Securities:
U.S. Treasury	$—	$72,980,290	$—	$72,980,290
Purchased Put Options	2,599,300	—	—	2,599,300
Equity Securities:
Common Stocks
Domestic	27,891,387	—	—	27,891,387
International	6,061,096	—	—	6,061,096
Exchange-Traded Funds	2,203,320	—	—	2,203,320
Investment Company	159,462,830	—	—	159,462,830
TOTAL SECURITIES	$198,217,933	$72,980,290	$—	$271,198,223
Other Financial Instruments:
Liabilities
Securities Sold Short	$(175,339,234)	$—	$—	$(175,339,234)
Futures Contracts	(1,342,397)	—	—	(1,342,397)
TOTAL OTHER FINANCIAL INSTRUMENTS	$(176,681,631)	$—	$—	$(176,681,631)

The following acronym(s) are used throughout this portfolio:
ADR	—American Depositary Receipt
ETF	—Exchange-Traded Fund
SPDR	—Standard & Poor’s Depositary Receipt

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Class A Shares

(For a Share Outstanding Throughout Each Period)1

	Year Ended September 30,
	2020	2019	2018	2017	2016
Net Asset Value, Beginning of Period	$12.58	$13.27	$16.27	$19.50	$22.70
Income From Investment Operations:
Net investment income (loss)2	(0.19)	0.10	(0.11)	(0.25)	(0.26)
Net realized and unrealized gain (loss)	(2.21)	(0.79)	(2.89)	(2.98)	(2.94)
Total From Investment Operations	(2.40)	(0.69)	(3.00)	(3.23)	(3.20)
Less Distributions:
Distributions from net investment income	(0.07)	—	—	—	—
Net Asset Value, End of Period	$10.11	$12.58	$13.27	$16.27	$19.50
Total Return3	(19.15)%	(5.20)%	(18.44)%	(16.56)%	(14.10)%
Ratios to Average Net Assets:
Net expenses4	2.85%	2.84%	3.54%	3.34%	3.23%5
Net expenses excluding dividends and other expenses related to short sales	1.78%	1.78%	1.89%	1.78%	1.76%5
Net investment income (loss)	(1.65)%	0.74%	(0.74)%	(1.40)%	(1.22)%
Expense waiver/reimbursement6	0.11%	0.09%	0.10%	0.07%	0.04%
Supplemental Data:
Net assets, end of period (000 omitted)	$59,987	$53,827	$57,253	$82,782	$151,943
Portfolio turnover	247%	313%	284%	315%	430%

1	On February 5, 2016, the Fund effected a 1 for 10 reverse share split. As a result of the reverse share split: (1) the number of outstanding Shares of the Fund decreased by a factor of 10; and (2) since the Fund’s total number of shares outstanding decreased, the net asset value per Fund Share (NAV/Share) increased. The reverse share split did not affect the value of the Fund’s net assets or each shareholders proportional ownership interest in those assets. Per share data has been restated where applicable.
2	Per share numbers have been calculated using the average shares method.
3	Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.
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 fees paid indirectly for expense offset arrangements. The net expense ratios is 3.23% after taking into account these expense reductions for the year ended September 30, 2016. The net expense ratios excluding dividends and other expenses related to short sales are also calculated without reduction for these fees paid indirectly for expense offset arrangements.
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.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Class C Shares

(For a Share Outstanding Throughout Each Period)1

	Year Ended September 30,
	2020	2019	2018	2017	2016
Net Asset Value, Beginning of Period	$10.98	$11.67	$14.42	$17.41	$20.40
Income From Investment Operations:
Net investment income (loss)2	(0.25)	0.003	(0.20)	(0.34)	(0.37)
Net realized and unrealized gain (loss)	(1.92)	(0.69)	(2.55)	(2.65)	(2.62)
Total From Investment Operations	(2.17)	(0.69)	(2.75)	(2.99)	(2.99)
Net Asset Value, End of Period	$8.81	$10.98	$11.67	$14.42	$17.41
Total Return4	(19.76)%	(5.91)%	(19.07)%	(17.17)%	(14.66)%
Ratios to Average Net Assets:
Net expenses5	3.63%	3.59%	4.28%	4.09%	3.98%6
Net expenses excluding dividends and other expenses related to short sales	2.53%	2.53%	2.63%	2.53%	2.51%6
Net investment income (loss)	(2.46)%	0.01%	(1.49)%	(2.16)%	(1.98)%
Expense waiver/reimbursement7	0.11%	0.09%	0.10%	0.07%	0.04%
Supplemental Data:
Net assets, end of period (000 omitted)	$12,696	$10,422	$12,090	$18,278	$29,624
Portfolio turnover	247%	313%	284%	315%	430%

1	On February 5, 2016, the Fund effected a 1 for 10 reverse share split. As a result of the reverse share split: (1) the number of outstanding Shares of the Fund decreased by a factor of 10; and (2) since the Fund’s total number of shares outstanding decreased, the net asset value per Fund Share (NAV/Share) increased. The reverse share split did not affect the value of the Fund’s net assets or each shareholders proportional ownership interest in those assets. Per share data has been restated where applicable.
2	Per share numbers have been calculated using the average shares method.
3	Represents less than $0.01.
4	Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.
5	Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
6	The net expense ratios are calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratios is 3.98%, after taking into account these expense reductions for the year ended September 30, 2016. The net expense ratios excluding dividends and other expenses related to short sales are also calculated without reduction for these fees paid indirectly for expense offset arrangements.
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.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Institutional Shares

(For a Share Outstanding Throughout Each Period)1

	Year Ended September 30,
	2020	2019	2018	2017	2016
Net Asset Value, Beginning of Period	$12.92	$13.59	$16.63	$19.88	$23.00
Income From Investment Operations:
Net investment income (loss)2	(0.22)	0.14	(0.07)	(0.20)	(0.20)
Net realized and unrealized gain (loss)	(2.21)	(0.81)	(2.97)	(3.05)	(2.92)
Total From Investment Operations	(2.43)	(0.67)	(3.04)	(3.25)	(3.12)
Less Distributions:
Distributions from net investment income	(0.11)	—	—	—	—
Net Asset Value, End of Period	$10.38	$12.92	$13.59	$16.63	$19.88
Total Return3	(18.97)%	(4.93)%	(18.28)%	(16.35)%	(13.57)%
Ratios to Average Net Assets:
Net expenses4	2.64%	2.56%	3.26%	3.04%	2.93%5
Net expenses excluding dividends and other expenses related to short sales	1.53%	1.53%	1.63%	1.53%	1.51%5
Net investment income (loss)	(1.79)%	1.03%	(0.48)%	(1.09)%	(0.92)%
Expense waiver/reimbursement6	0.09%	0.09%	0.10%	0.06%	0.04%
Supplemental Data:
Net assets, end of period (000 omitted)	$196,933	$77,603	$86,727	$107,720	$172,765
Portfolio turnover	247%	313%	284%	315%	430%

1	On February 5, 2016, the Fund effected a 1 for 10 reverse share split. As a result of the reverse share split: (1) the number of outstanding Shares of the Fund decreased by a factor of 10; and (2) since the Fund’s total number of shares outstanding decreased, the net asset value per Fund Share (NAV/Share) increased. The reverse share split did not affect the value of the Fund’s net assets or each shareholders proportional ownership interest in those assets. Per share data has been restated where applicable.
2	Per share numbers have been calculated using the average shares method.
3	Based on net asset value.
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 fees paid indirectly for expense offset arrangements. The net expense ratios is 2.93%, after taking into account these expense reductions for the year ended September 30, 2016. The net expense ratios excluding dividends and other expenses related to short sales are also calculated without reduction for these fees paid indirectly for expense offset arrangements.
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.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Assets and Liabilities September 30, 2020

Assets:
Investment in securities, at value including $159,462,830 of investment in affiliated holdings and $598,260 of investment in affiliated companies* (identified cost $276,096,035)	$271,198,223
Cash	7
Cash denominated in foreign currencies (identified cost $112)	112
Deposit at broker for short sales	174,064,419
Income receivable	19,692
Income receivable from affiliated holdings	5,931
Interest receivable on short positions	1,503
Receivable for investments sold	607,955
Receivable for shares sold	2,229,999
Total Assets	448,127,841
Liabilities:
Securities sold short, at value (proceeds $133,282,463)	175,339,234
Dividends payable on short positions	529,594
Payable for investments purchased	491,828
Payable for shares redeemed	1,177,445
Payable for variation margin on futures contracts	772,012
Payable for investment adviser fee (Note 5)	62,850
Payable for administrative fee (Note 5)	579
Payable for distribution services fee (Note 5)	7,749
Payable for other service fees (Notes 2 and 5)	23,471
Accrued expenses (Note 5)	107,111
Total Liabilities	178,511,873
Net assets for 26,355,871 shares outstanding	$269,615,968
Net Assets Consist of:
Paid-in capital	$1,192,438,169
Total distributable earnings (loss)	(922,822,201)
Total Net Assets	$269,615,968

Annual Shareholder Report

Statement of Assets and Liabilities–continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Class A Shares:
Net asset value per share ($59,987,064 ÷ 5,935,861 shares outstanding), no par value, unlimited shares authorized	$10.11
Offering price per share (100/94.50 of $10.11)	$10.70
Redemption proceeds per share	$10.11
Class C Shares:
Net asset value per share ($12,695,548 ÷ 1,441,281 shares outstanding), no par value, unlimited shares authorized	$8.81
Offering price per share	$8.81
Redemption proceeds per share (99.00/100 of $8.81)	$8.72
Institutional Shares:
Net asset value per share ($196,933,356 ÷ 18,978,729 shares outstanding), no par value, unlimited shares authorized	$10.38
Offering price per share	$10.38
Redemption proceeds per share	$10.38

*	See information listed after the Fund’s Portfolio of Investments.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Operations Year Ended September 30, 2020

Investment Income:
Dividends (including $600,002 received from affiliated holdings* and net of foreign taxes withheld of $1,507)	$1,144,858
Interest	1,123,987
TOTAL INCOME	2,268,845
Expenses:
Investment adviser fee (Note 5)	2,952,915
Administrative fee (Note 5)	185,854
Custodian fees	51,596
Transfer agent fees	293,586
Directors’/Trustees’ fees (Note 5)	1,745
Auditing fees	36,340
Legal fees	8,463
Portfolio accounting fees	94,824
Distribution services fee (Note 5)	90,334
Other service fees (Notes 2 and 5)	180,557
Share registration costs	143,944
Printing and postage	46,307
Miscellaneous (Note 5)	33,383
Expenses related to short positions	2,603,993
TOTAL EXPENSES	6,723,841
Waiver/reimbursement of investment adviser fee (Note 5)	(232,015)
Net expenses	6,491,826
Net investment income (loss)	(4,222,981)

Annual Shareholder Report

Statement of Operations–continued

Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions, Futures Contracts and Short Sales:
Net realized gain on investments (including net realized gain of $324,088 on sales of investments in affiliated companies)	$11,051,939
Net realized loss on foreign currency transactions	(2,807)
Net realized loss on futures contracts	(46,103,392)
Net realized loss on short sales	(17,502,513)
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $(4,042) on investments in affiliated companies)	(5,283,842)
Net change in unrealized depreciation of translation of assets and liabilities in foreign currency	186
Net change in unrealized appreciation of futures contracts	(2,867,002)
Net change in unrealized depreciation of securities sold short	(34,194,959)
Net realized and unrealized gain (loss) on investments, futures contracts, short sales and foreign currency transactions	(94,902,390)
Change in net assets resulting from operations	$(99,125,371)

*	See information listed after the Fund’s Portfolio of Investments.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Changes in Net Assets

Year Ended September 30	2020	2019
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$(4,222,981)	$1,495,898
Net realized loss	(52,556,773)	(11,856,531)
Net change in unrealized appreciation/depreciation	(42,345,617)	(1,369,306)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS	(99,125,371)	(11,729,939)
Distributions to Shareholders:
Class A Shares	(298,160)	—
Institutional Shares	(631,166)	—
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS	(929,326)	—
Share Transactions:
Proceeds from sale of shares	750,374,039	190,366,433
Net asset value of shares issued to shareholders in payment of distributions declared	870,654	—
Cost of shares redeemed	(523,426,433)	(192,854,252)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS	227,818,260	(2,487,819)
Change in net assets	127,763,563	(14,217,758)
Net Assets:
Beginning of period	141,852,405	156,070,163
End of period	$269,615,968	$141,852,405

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Notes to Financial Statements

September 30, 2020

1. ORGANIZATION

Federated Hermes Equity Funds (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 9 portfolios. The financial statements included herein are only those of Federated Hermes Prudent Bear 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 three classes of shares: Class A Shares, Class C Shares and Institutional 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 seek capital appreciation.

Prior to June 29, 2020, the name of the Trust and Fund was Federated Equity Funds and Federated Prudent Bear Fund, respectively.

2. SIGNIFICANT ACCOUNTING POLICIES

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

■

Equity securities including shares of exchange traded funds 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.

■

Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Fund’s Board of Trustees (the “Trustees”).

■

Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs.

■

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 asked quotations.

■

Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

■

Annual Shareholder Report

Fair Valuation and Significant Events Procedures

The Trustees have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Trustees have appointed a Valuation Committee comprised of officers of the Fund, the Adviser and certain of the Adviser’s affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee 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-party pricing 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 Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.

Annual Shareholder Report

■

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;

■

Repurchase Agreements

Annual Shareholder Report

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, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Amortization/accretion of premium and discount is included in investment income. 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 reimbursement of $232,015 is disclosed in various locations in 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.

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 and Class C 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 September 30, 2020, other service fees for the Fund were as follows:

	Other Service Fees Incurred
Class A Shares	$150,606
Class C Shares	29,951
TOTAL	$180,557

Federal Taxes

It is the Fund’s policy to comply with the Subchapter M provision of the Internal Revenue 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 September 30, 2020, 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 September 30, 2020, tax years 2017 through 2020 remain subject to examination by the Fund’s major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

Annual Shareholder Report

When-Issued and Delayed-Delivery Transactions

Futures Contracts

The Fund purchases and sells financial futures contracts to manage market risk and sector/asset class risk. 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 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.

Futures contracts outstanding at period end are listed after the Fund’s Portfolio of Investments.

The average notional value of short futures contracts held by the Fund throughout the period was $103,562,606. This is based on amounts held as of each month-end throughout the fiscal period.

Foreign Exchange Contracts

The Fund enters into foreign exchange contracts to manage currency risk and market risk. Purchased contracts are used to acquire exposure to foreign currencies, whereas, contracts to sell are used to hedge the Fund’s securities against currency fluctuations. Risks may arise upon entering into these transactions from the potential inability of counterparties to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the settlement date.

At September 30, 2020, the Fund had no outstanding foreign exchange contracts.

Foreign Currency Translation

Annual Shareholder Report

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 fiscal year end, resulting from changes in the exchange rate.

Option Contracts

The Fund buys or sells put and call options to seek to manage individual security risk, market risk and sector/asset class risk. The seller (“writer”) of an option receives a payment or premium, from the buyer, which the writer keeps regardless of whether the buyer exercises the option. When the Fund writes a put or call option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options which expire are treated as realized gains. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the underlying reference instrument. When the Fund purchases a put or call option, an amount equal to the premium paid is recorded as an increase to the cost of the investment and subsequently marked to market to reflect the current value of the option purchased. Premiums paid for purchasing options which expire are treated as realized losses. Premiums received/paid for writing/purchasing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying reference instrument to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. Options can trade on securities or commodities exchanges. In this case, the exchange sets all the terms of the contract except for the price. Most exchanges require investors to maintain margin accounts through their brokers to cover their potential obligations to the exchange. This protects investors against potential defaults by the counterparty.

Purchased option contracts outstanding at period end are listed in the Fund’s Portfolio of Investments.

The average market value of purchased put and call options held by the Fund throughout the period was $1,672,976 and $89,215, respectively. This is based on amounts held as of each month-end throughout the fiscal period.

Short Sales

In a short sale, the Fund sells a security it does not own in anticipation of a decline in the fair market value of the security. When the Fund sells a security short, it must borrow the security in order to deliver it at the completion of the sale. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the termination of the short sale.

Annual Shareholder Report

The Fund has an obligation to replace the borrowed security (e.g., to purchase the security at a future date and deliver it to the lender of the security). While the security is borrowed, the proceeds from the sale are deposited with the lender (“Prime Broker”). The Fund may incur two types of expenses from short sales: borrowing expenses and dividend expenses. Borrowing expenses may occur because the Fund may be obligated to pay fees to the Prime Broker on borrowed securities. This fee is normally based upon the market value of the borrowed security and is dependent upon the availability of the security. Dividend expenses may occur because the Fund has to pay the Prime Broker the equivalent of any dividends earned on the borrowed security.

For the year ended September 30, 2020, the net realized gain (loss) and the net change in unrealized appreciation/(depreciation) on short sales was $(17,502,513) and $(34,194,959), respectively.

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 Trustees.

Annual Shareholder Report

Additional Disclosure Related to Derivative Instruments

Fair Value of Derivative Instruments
	Assets		Liabilities
	Statement of Assets and Liabilities Location	Fair Value	Statement of Assets and Liabilities Location	Fair Value
Derivatives not accounted for as hedging instruments under ASC Topic 815
Equity contracts		$—	Payable for variation margin on futures contracts	$1,342,397*
Equity contracts	Purchased options, within Investment in securities at value	2,599,300		—
Total derivatives not accounted for as hedging instruments under ASC Topic 815		$2,599,300		$1,342,397

*	Includes cumulative net depreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

The Effect of Derivative Instruments on the Statement of Operations for the Year Ended September 30, 2020

Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
	Futures Contracts	Purchased Options Contracts1	Total
Equity contracts	$(46,103,392)	$(5,435,440)	$(51,538,832)

1	The net realized gain on Purchased Options Contracts is found within the Net realized gain on investments on the Statement of Operations.

Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
	Futures Contracts	Purchased Options Contracts2	Total
Equity contracts	$(2,867,002)	$(2,476,171)	$(5,343,173)

2	The net change in unrealized depreciation of Purchased Options Contracts is found within the Net change in unrealized appreciation of investments on the Statement of Operations.

Annual Shareholder Report

Other

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Year Ended 9/30/2020		Year Ended 9/30/2019
Class A Shares:	Shares	Amount	Shares	Amount
Shares sold	6,984,958	$88,152,318	2,047,603	$27,790,183
Shares issued to shareholders in payment of distributions declared	24,235	288,639	—	—
Shares redeemed	(5,351,337)	(63,485,389)	(2,084,099)	(27,983,338)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	1,657,856	$24,955,568	(36,496)	$(193,155)
	Year Ended 9/30/2020		Year Ended 9/30/2019
Class C Shares:	Shares	Amount	Shares	Amount
Shares sold	1,108,513	$12,305,574	348,159	$4,133,549
Shares redeemed	(616,145)	(6,342,497)	(435,192)	(5,014,883)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	492,368	$5,963,077	(87,033)	$(881,334)
	Year Ended 9/30/2020		Year Ended 9/30/2019
Institutional Shares:	Shares	Amount	Shares	Amount
Shares sold	49,596,234	$649,916,147	11,279,048	$158,442,701
Shares issued to shareholders in payment of distributions declared	47,667	582,015	—	—
Shares redeemed	(36,671,028)	(453,598,547)	(11,653,191)	(159,856,031)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	12,972,873	$196,899,615	(374,143)	$(1,413,330)
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS	15,123,097	$227,818,260	(497,672)	$(2,487,819)

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 differing treatments from expiration of capital loss carryforwards.

Annual Shareholder Report

For the year ended September 30, 2020, permanent differences identified and reclassified among the components of net assets were as follows:

Increase (Decrease)
Paid-In Capital	Total Distributable Earnings (Loss)
$(70,840)	$70,840

Net investment income (loss), net realized gains (losses), and 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 September 30, 2020 and 2019, was as follows:

	2020	2019
Ordinary income	$929,326	$—

As of September 30, 2020, the components of distributable earnings on a tax-basis were as follows:

Unrealized depreciation	$(53,915,549)
Capital loss carryforwards and deferrals	$(868,906,652)

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 mark to market of futures contracts.

At September 30, 2020, the cost of investments for federal tax purposes was $283,056,989. The net unrealized depreciation of investments for federal tax purposes was $53,915,537. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $2,267,204 and net unrealized depreciation from investments for those securities having an excess of cost over value of $56,182,741. The amounts presented are inclusive of derivative contracts.

As of September 30, 2020, the Fund had a capital loss carryforward of $865,104,566 which will reduce the Fund’s taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, 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.

The following schedule summarizes the Fund’s capital loss carryforwards:

Short-Term	Long-Term	Total
$655,446,520	$209,658,046	$865,104,566

Annual Shareholder Report

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 1.25% of the Fund’s average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion. For the year ended September 30, 2020, the Adviser voluntarily waived $146,060 of its fee.

Administrative Fee

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

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 Shareholder Report

	Distribution Services Fees Incurred
Class C Shares	$90,334

When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the year ended September 30, 2020, FSC retained $27,196 of fees paid by the Fund. For the year ended September 30, 2020, 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 (CDSC) 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 September 30, 2020, FSC retained $19,340 in sales charges from the sale of Class A Shares. For the year ended September 30, 2020, FSC also retained $12,672 of CDSC relating to redemptions of Class C Shares.

Other Service Fees

For the year ended September 30, 2020, FSSC received $19,911 of the 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 dividends and other expenses related to short sales, interest expense, extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund’s Class A Shares, Class C Shares and Institutional Shares (after the voluntary waivers and/or reimbursements) will not exceed 1.78%, 2.53% and 1.53% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) December 1, 2021; 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 agreement of the Trustees.

Interfund Transactions

During the year ended September 30, 2020, the Fund engaged in sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees and/or common Officers. These sale transactions complied with Rule 17a-7 under the Act and amounted to $464,520. Net realized gain recognized on these transactions was $167,636.

Annual Shareholder Report

Directors’/Trustees’ and Miscellaneous Fees

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended September 30, 2020, were as follows:

Purchases	$492,442,730
Sales	$531,452,175

7. CONCENTRATION OF RISK

A substantial portion of the Fund’s portfolio may be comprised of securities deemed by the Adviser to be in similar sectors. 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

9. INTERFUND LENDING

Annual Shareholder Report

10. OTHER MATTERS

11. FEDERAL TAX INFORMATION (unaudited)

Of the ordinary income distributions made by the Fund during the year ended September 30, 2020, 100% qualify for the dividend received deduction available to corporate shareholders.

Annual Shareholder Report

Report of Independent Registered Public Accounting Firm

TO THE BOARD OF TRUSTEES OF Federated Hermes Equity Funds AND SHAREHOLDERS OF Federated Hermes Prudent Bear Fund:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Federated Hermes Prudent Bear Fund (formerly, Federated Prudent Bear Fund) (the “Fund”), a portfolio of Federated Hermes Equity Funds (formerly, Federated Equity Funds), as of September 30, 2020, 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 September 30, 2020, 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

Annual Shareholder Report

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 September 30, 2020, by correspondence with the custodian and brokers, or by other appropriate 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 of one or more of Federated Hermes’ investment companies since 2006.

Boston, Massachusetts
November 23, 2020

Annual Shareholder Report

Shareholder Expense Example (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from April 1, 2020 to September 30, 2020.

ACTUAL EXPENSES

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

Annual Shareholder Report

	Beginning Account Value 4/1/2020	Ending Account Value 9/30/2020	Expenses Paid During Period1
Actual:
Class A Shares	$1,000	$737.40	$12.38
Class C Shares	$1,000	$734.20	$15.91
Institutional Shares	$1,000	$738.30	$11.17
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,010.75	$14.33
Class C Shares	$1,000	$1,006.65	$18.41
Institutional Shares	$1,000	$1,012.15	$12.93

1	Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half-year period). The annualized net expense ratios are as follows:

Class A Shares	2.85%
Class C Shares	3.67%
Institutional Shares	2.57%

Annual Shareholder Report

Board of Trustees and Trust Officers

The Board of Trustees is responsible for managing the Trust’s business affairs and for exercising all the Trust’s powers except those reserved for the shareholders. The following tables give information about each Trustee and the senior officers of the Fund. Where required, the tables separately list Trustees who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). Unless otherwise noted, the address of each person listed is 1001 Liberty Avenue, Pittsburgh, PA 15222. The address of all Independent Trustees listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2019, the Trust comprised 10 portfolio(s), and the Federated Hermes Fund Family consisted of 41 investment companies (comprising 135 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Trustee oversees all portfolios in the Federated Hermes Fund Family and serves for an indefinite term. The Fund’s Statement of Additional Information includes additional information about Trust Trustees and is available, without charge and upon request, by calling 1-800-341-7400.