NPORT-EX 2 poi_fhkaufmannfundii.htm POI - FEDERATED HERMES KAUFMANN FUND II EDGAR HTML
Federated Hermes Kaufmann Fund II
Portfolio of Investments
September 30, 2021 (unaudited)  
Shares or
Principal
Amount
 
 
Value
         
 
COMMON STOCKS—96.3%
 
 
1
Communication Services—1.4%
 
20,180
 
Playtika Holding Corp.
$557,573    
3,380
 
Take-Two Interactive Software, Inc.
520,757    
33,000
 
ZoomInfo Technologies, Inc.
2,019,270  
 
 
TOTAL
3,097,600
 
 
Consumer Discretionary—9.2%
 
6,802
1
Airbnb, Inc.
1,141,036  
3,605
1
Alibaba Group Holding Ltd., ADR
533,720    
575
1
Amazon.com, Inc.
1,888,898  
8,316
1
Chegg, Inc.
565,654    
300
1
Chipotle Mexican Grill, Inc.
545,256    
4,069
 
Choice Hotels International, Inc.
514,200    
8,357
1
DraftKings, Inc.
402,473    
7,800
1
Etsy, Inc.
1,622,088  
26,000
1,2
Fisker, Inc.
380,900    
18,300
1
Floor & Decor Holdings, Inc.
2,210,457  
1,400
 
Home Depot, Inc.
459,564    
8,900
1
Las Vegas Sands Corp.
325,740    
3,500
1
Lululemon Athletica, Inc.
1,416,450  
920
1
Mercadolibre, Inc.
1,545,048  
14,000
 
Moncler S.p.A.
856,251    
714,400
 
NagaCorp Ltd.
608,570    
8,392
1
Planet Fitness, Inc.
659,192    
19,513
1,3
Sportradar Group AG
441,579    
825
 
Vail Resorts, Inc.
275,591    
14,900
 
Wingstop, Inc.
2,442,557  
11,800
1
YETI Holdings, Inc.
1,011,142  
 
 
TOTAL
19,846,366
 
 
Consumer Staples—1.5%
 
500
 
Costco Wholesale Corp.
224,675    
2,320
 
Estee Lauder Cos., Inc., Class A
695,838    
3,913
1
Freshpet, Inc.
558,346    
78,400
1
Oatly Group AB, ADR
1,185,408  
15,850
1
The Duckhorn Portfolio, Inc.
362,806    
17,400
1
Zevia PBC
200,274    
 
 
TOTAL
3,227,347
 
 
Energy—1.3%
 
4,326
 
Cheniere Energy, Inc.
422,520    
59,500
3
New Fortress Energy, Inc.
1,651,125  
4,100
 
Pioneer Natural Resources, Inc.
682,691    
 
 
TOTAL
2,756,336
 
 
Financials—8.5%
 
18,400
 
Apollo Global Management LLC
1,133,256  
16,095
 
Artisan Partners Asset Management, Inc.
787,368    
2,225
 
BlackRock, Inc.
1,866,019  
7,500
 
Blue Owl Capital, Inc.
116,700    
275,000
1
Blue Owl Capital, Inc.
4,279,000  
2,748
1
Coinbase Global, Inc.
625,115    
121,400
 
FinecoBank Banca Fineco SPA
2,200,080  
740
 
Goldman Sachs Group, Inc.
279,742    
1
Shares or
Principal
Amount
 
 
Value
         
 
COMMON STOCKS—continued
 
 
 
Financials—continued
 
14,200
1
Hamilton Lane Alliance Holdings I, Inc.
$137,740    
19,500
 
Hamilton Lane, Inc.
1,653,990  
31,400
 
KKR & Co., Inc., Class Common
1,911,632  
310
1
Markel Corp.
370,490    
2,082
 
MSCI, Inc., Class A
1,266,564  
36,800
 
StepStone Group, Inc.
1,569,152  
 
 
TOTAL
18,196,848
 
 
Health Care—36.0%
 
5,500
 
Abbott Laboratories
649,715    
14,300
1
Adagio Therapeutics, Inc.
604,032    
17,500
1,4
Adagio Therapeutics, Inc.
616,000    
3,642
1
Agilon health, Inc.
95,457     
32,196
1,3
Akouos, Inc.
373,796    
36,500
1
Albireo Pharma, Inc.
1,138,800  
65,629
1
Alector, Inc.
1,497,654  
8,700
1
Alnylam Pharmaceuticals, Inc.
1,642,647  
35,100
1
Amphastar Pharmaceuticals, Inc.
667,251    
1,154
1
AnaptysBio, Inc.
31,296     
27,700
1
Annexon, Inc.
515,497    
43,800
1
Arcturus Therapeutics Holdings, Inc.
2,092,764  
22,100
1
Argenx SE
6,669,704  
57,250
1
aTyr Pharma, Inc.
519,830    
30,900
1
Avidity Biosciences LLC
761,067    
26,488
1
Avrobio, Inc.
147,803    
76,233
1
Calithera Biosciences, Inc.
166,188    
22,800
1
Catalent, Inc.
3,033,996  
7,000
1
Century Therapeutics, Inc.
176,120    
7,369
1,4
Century Therapeutics, Inc.
161,468    
1,076,793
1,4
CeQur SA
295,079    
8,852
1
Cerevel Therapeutics Holdings
261,134    
23,800
1
ContraFect Corp.
96,390     
97,500
1
Corcept Therapeutics, Inc.
1,918,800  
6,418
1
CRISPR Therapeutics AG
718,367    
12,900
 
Danaher Corp.
3,927,276  
3,518
1
Definitive Healthcare Corp.
150,676    
7,700
1
Dexcom, Inc.
4,210,822  
196,600
1
Dynavax Technologies Corp.
3,776,686  
7,500
1
Edwards Lifesciences Corp.
849,075    
3,200
1
Fate Therapeutics, Inc.
189,664    
27,400
1,3
Frequency Therapeutics, Inc.
193,444    
5,088
1
Frequency Therapeutics, Inc.
35,921     
127,397
1
Gamida Cell Ltd.
499,396    
3,650
1
Genmab A/S
1,594,628  
14,850
1
Genmab A/S, ADR
648,945    
12,200
1
Gossamer Bio, Inc.
153,354    
18,728
1
Gracell Biotechnologies, Inc., ADR
259,757    
8,060
1
Graphite Bio, Inc.
132,103    
23,791
1
IDEAYA Biosciences, Inc.
606,433    
1,550
1
IDEXX Laboratories, Inc.
963,945    
10,000
1,2
Immatics N.V.
130,000    
9,400
1,3
Immatics N.V.
122,200    
6,700
1
Insulet Corp.
1,904,341  
5,048
1
Intellia Therapeutics, Inc.
677,189    
680
1
Intuitive Surgical, Inc.
676,022    
2
Shares or
Principal
Amount
 
 
Value
         
 
COMMON STOCKS—continued
 
 
 
Health Care—continued
 
18,600
1,4
Jasper Therapeutics, Inc.
$154,627    
21,500
1
Kaleido Biosciences, Inc.
117,390    
11,300
1
Karuna Therapeutics, Inc.
1,382,329  
4,307
1,4
Laronde, Inc.
120,596    
20,828
1
Legend Biotech Corp., ADR
1,053,064  
5,500
1,3
Lyell Immunopharma, Inc.
81,400     
34,800
1
Merus NV
765,600    
137,800
1
Minerva Neurosciences, Inc.
239,772    
6,773
1
Moderna, Inc.
2,606,657  
20,852
1,3
Molecular Partners AG
407,740    
2,987
1
Molecular Partners AG, ADR
58,934     
1,300
1
Morphic Holding, Inc.
73,632     
16,762
1
NeoGenomics, Inc.
808,599    
14,887
1
Orchard Therapeutics PLC
34,240     
71,687
1
Orchard Therapeutics PLC, ADR
164,880    
81,200
1
Otonomy, Inc.
155,904    
7,049
1
Privia Health Group, Inc.
166,074    
5,200
1
Repligen Corp.
1,502,748  
17,262
1
Rezolute, Inc.
128,084    
34,612
1
Rhythm Pharmaceuticals, Inc.
452,033    
9,100
1
Rubius Therapeutics, Inc.
162,708    
6,083
1
Sarepta Therapeutics, Inc.
562,556    
13,770
1
Scynexis, Inc.
72,981     
182,100
1
Seres Therapeutics, Inc.
1,267,416  
8,815
1
Stoke Therapeutics, Inc.
224,254    
3,200
 
Stryker Corp.
843,904    
10,114
1
Surgery Partners, Inc.
428,227    
55,000
1
Talkspace, Inc.
200,750    
17,700
1
Tandem Diabetes Care, Inc.
2,113,026  
15,765
1
Turning Point Therapeutics, Inc.
1,047,269  
44,000
1
Ultragenyx Pharmaceutical, Inc.
3,968,360  
44,400
1
UniQure N.V.
1,421,244  
15,700
1
Veeva Systems, Inc.
4,524,269  
4,630
1
Verve Therapeutics, Inc.
217,610    
22,000
1
Zai Lab Ltd., ADR
2,318,580  
15,734
1
Zentalis Pharmaceuticals, LLC
1,048,514  
 
 
TOTAL
77,448,703
 
 
Industrials—9.7%
 
46,317
1
Azek Co., Inc.
1,691,960  
23,257
1
Azul S.A., ADR
466,535    
33,300
1
CoStar Group, Inc.
2,865,798  
6,100
1
Generac Holdings, Inc.
2,492,887  
25,566
1
GXO Logistics, Inc.
2,005,397  
13,033
 
HEICO Corp.
1,718,662  
9,800
 
IHS Markit Ltd.
1,142,876  
15,300
1
Ingersoll-Rand, Inc.
771,273    
15,414
1
Mercury Systems, Inc.
730,932    
1,500
 
Roper Technologies, Inc.
669,195    
12,400
 
Trane Technologies PLC
2,140,860  
22,868
1
Trex Co., Inc.
2,330,935  
13,038
1
Upwork, Inc.
587,101    
16,927
1
XPO Logistics, Inc.
1,347,051  
 
 
TOTAL
20,961,462
3
Shares or
Principal
Amount
 
 
Value
         
 
COMMON STOCKS—continued
 
 
 
Information Technology—21.4%
 
1,035
1
Adobe, Inc.
$595,870    
30,400
1
Advanced Micro Devices, Inc.
3,128,160  
5,300
1
Anaplan, Inc.
322,717    
6,219
1
Ansys, Inc.
2,117,259  
3,100
1
Avalara, Inc.
541,787    
7,900
1
Coupa Software, Inc.
1,731,522  
5,207
1
CS Disco, Inc.
249,624    
2,805
1
DocuSign, Inc.
722,091    
7,706
1
Domo, Inc.
650,695    
17,300
1
Envestnet, Inc.
1,388,152  
5,600
1
Everbridge, Inc.
845,824    
36,700
1
GDS Holdings Ltd., ADR
2,077,587  
6,400
1
GoDaddy, Inc.
446,080    
55,000
1
Ironsource, Ltd.
597,850    
33,000
 
Marvell Technology, Inc.
1,990,230  
39,221
 
McAfee Corp.
867,176    
49,200
1
Nexi SpA
917,912    
46,200
1
PagSeguro Digital Ltd.
2,389,464  
80,000
1
Paysafe Ltd.
620,000    
12,510
1
Q2 Holdings, Inc.
1,002,551  
27,450
1
Qualtrics International, Inc.
1,173,213  
11,724
1
Radware Ltd.
395,333    
14,700
1
Rapid7, Inc.
1,661,394  
2,800
1
Salesforce.com, Inc.
759,416    
5,900
1
ServiceNow, Inc.
3,671,393  
5,170
1
Shopify, Inc.
7,009,383  
5,700
1
Smartsheet, Inc.
392,274    
9,750
1
Splunk, Inc.
1,410,922  
4,600
1
Tyler Technologies, Inc.
2,109,790  
6,700
1
Unity Software, Inc.
845,875    
7,175
1
Varonis Systems, Inc.
436,599    
52,500
1
WM Technology, Inc.
761,250    
9,400
1
Workday, Inc.
2,348,966  
 
 
TOTAL
46,178,359
 
 
Materials—5.1%
 
43,200
 
Agnico Eagle Mines Ltd.
2,239,920  
80,800
 
Barrick Gold Corp.
1,458,440  
8,250
 
Eagle Materials, Inc.
1,082,070  
39,400
 
Newmont Corp.
2,139,420  
19,100
1,3
PureCycle Technologies, Inc.
253,648    
6,500
 
Scotts Miracle-Gro Co.
951,340    
10,200
 
Sherwin-Williams Co.
2,853,246  
 
 
TOTAL
10,978,084
 
 
Real Estate—2.0%
 
17,051
 
Americold Realty Trust
495,331    
4,914
 
Crown Castle International Corp.
851,694    
19,489
 
MGM Growth Properties LLC
746,429    
3,960
 
ProLogis, Inc.
496,703    
7,704
1
Ryman Hospitality Properties
644,825    
13,800
 
STAG Industrial, Inc.
541,650    
3,417
 
Sun Communities, Inc.
632,487    
 
 
TOTAL
4,409,119
4
Shares or
Principal
Amount
 
 
Value
         
 
COMMON STOCKS—continued
 
 
 
Utilities—0.2%
 
5,643
 
NextEra Energy, Inc.
$443,088    
 
 
TOTAL COMMON STOCKS
(IDENTIFIED COST $108,696,520)
207,543,312
 
1
WARRANTS—0.3%
 
 
 
Financials—0.0%
 
9,446
 
Hamilton Lane Alliance Holdings I, Inc., Warrants, Expiration Date 1/8/2026
7,557      
 
 
Health Care—0.3%
 
21,500
 
Catabasis Pharmaceuticals, Inc., Warrants, Expiration Date 6/22/2023
6,891      
11,450
 
Catabasis Pharmaceuticals, Inc., Warrants, Expiration Date 2/8/2024
7,548      
87,500
 
ContraFect Corp., Warrants, Expiration Date 7/20/2022
52         
10,000
 
Dynavax Technologies Corp., Warrants, Expiration Date 2/12/2022
147,300    
4,700
 
Immatics N.V., Warrants, Expiration Date 12/31/2025
19,787     
5,696
 
Rezolute, Inc., Warrants, Expiration Date 10/8/2027
38,903     
26,500
 
Scynexis, Inc., Warrants, Expiration Date 12/21/2021
1,579      
2,520
 
Scynexis, Inc., Warrants, Expiration Date 3/8/2023
744        
26,500
 
Scynexis, Inc., Warrants, Expiration Date 5/21/2024
49,915     
53,000
 
Scynexis, Inc., Warrants, Expiration Date 1/1/2099
280,900    
 
 
TOTAL
553,619
 
 
TOTAL WARRANTS
(IDENTIFIED COST $352,908)
561,176
 
 
REPURCHASE AGREEMENTS—4.9%
 
$7,581,000
 
Interest in $1,790,000,000 joint repurchase agreement 0.06%, dated 9/30/2021 under which Bank of America, N.A. will
repurchase securities provided as collateral for $1,790,002,735 on 10/1/2021. The securities provided as collateral at the end of
the period held with BNY Mellon as tri-party agent, were U.S. Government Agency securities with various maturities to
4/20/2050 and the market value of those underlying securities was $1,825,802,790.
7,581,000  
2,979,268
 
Interest in $1,790,000,000 joint repurchase agreement 0.06%, dated 9/30/2021 under which Bank of America, N.A. will
repurchase securities provided as collateral for $1,790,002,735 on 10/1/2021. The securities provided as collateral at the end of
the period held with BNY Mellon as tri-party agent, were U.S. Government Agency securities with various maturities to
4/20/2050 and the market value of those underlying securities was $1,825,802,790 (purchased with proceeds from securities
lending collateral).
2,979,268  
 
 
TOTAL REPURCHASE AGREEMENTS
(IDENTIFIED COST $10,560,268)
10,560,268
 
 
TOTAL INVESTMENT IN SECURITIES—101.5%
(IDENTIFIED COST $119,609,696)
218,664,756
 
 
OTHER ASSETS AND LIABILITIES - NET—(1.5)%5
(3,264,660)
 
 
TOTAL NET ASSETS—100%
$215,400,096
5
An affiliated company is a company in which the Fund, alone or in combination with other funds, has ownership of at least 5% of the voting shares. Transactions with affiliated companies during the period ended September 30, 2021, were as follows:  
 
Value as of
12/31/2020
Purchases
at Cost*
Proceeds
from Sales*
Change in
Unrealized
Appreciation/
Depreciation*
Net
Realized Gain/
(Loss)*
Value as of
9/30/2021
Shares
Held as of
9/30/2021
Dividend
Income*
Financials:
 
 
 
 
 
 
 
 
Hamilton Lane Alliance Holdings I, Inc.**
$—
$286,845
$(137,006)
$(939)
$(11,160)
$137,740
14,200
$—
Hamilton Lane Alliance Holdings I, Inc.,
Warrants, Expiration Date 1/8/2026**
$—
$—
$6,868
$689
$—
$7,557
9,446
$—
StepStone Group, Inc.
$—
$1,150,618
$(98,783)
$483,552
$33,765
$1,569,152
36,800
$5,306
Health Care:
 
 
 
 
 
 
 
 
Akouos, Inc.
$594,305
$30,598
$—
$(251,107)
$—
$373,796
32,196
$—
Albireo Pharma, Inc.
$1,511,653
$—
$(140,904)
$(220,853)
$(11,096)
$1,138,800
36,500
$—
Alector, Inc.
$841,319
$285,654
$(188,878)
$483,227
$76,332
$1,497,654
65,629
$—
Amphastar Pharmaceuticals, Inc.
$732,004
$—
$(25,768)
$(38,265)
$(720)
$667,251
35,100
$—
Annexon, Inc.
$300,360
$445,623
$—
$(230,486)
$—
$515,497
27,700
$—
Arcturus Therapeutics Holdings, Inc.
$2,290,464
$12,172
$(533,125)
$807,772
$(484,519)
$2,092,764
43,800
$—
aTyr Pharma, Inc.
$—
$457,338
$—
$62,492
$—
$519,830
57,250
$—
Avidity Biosciences LLC
$461,912
$279,422
$—
$19,733
$—
$761,067
30,900
$—
Avrobio, Inc.
$199,342
$227,658
$(117,074)
$(85,242)
$(76,881)
$147,803
26,488
$—
Calithera Biosciences, Inc.
$479,216
$—
$(67,732)
$(142,843)
$(102,453)
$166,188
76,233
$—
Catabasis Pharmaceuticals, Inc., Warrants,
Expiration Date 6/22/2023**
$15,628
$—
$—
$(8,737)
$—
$6,891
21,500
$—
Catabasis Pharmaceuticals, Inc., Warrants,
Expiration Date 2/8/2024**
$13,298
$—
$—
$(5,750)
$—
$7,548
11,450
$—
ContraFect Corp.
$—
$119,000
$—
$(22,610)
$—
$96,390
23,800
$—
ContraFect Corp., Warrants, Expiration
Date 7/20/2022
$4,489
$—
$—
$(4,437)
$—
$52
87,500
$—
Dynavax Technologies Corp.
$764,510
$322,965
$(94,437)
$2,786,254
$(2,606)
$3,776,686
196,600
$—
Dynavax Technologies Corp., Warrants,
Expiration Date 2/12/2022
$18,923
$—
$—
$128,377
$—
$147,300
10,000
$—
Frequency Therapeutics, Inc.
$736,934
$236,820
$(399,367)
$(492,314)
$111,371
$193,444
27,400
$—
Frequency Therapeutics, Inc.
$179,403
$—
$—
$(143,482)
$—
$35,921
5,088
$—
Gamida Cell Ltd.
$1,153,818
$—
$(115,650)
$(557,120)
$18,348
$499,396
127,397
$—
IDEAYA Biosciences, Inc.
$157,850
$212,037
$—
$236,546
$—
$606,433
23,791
$—
Merus NV
$673,152
$—
$(87,252)
$155,998
$23,702
$765,600
34,800
$—
Minerva Neurosciences, Inc.
$322,452
$—
$—
$(82,680)
$—
$239,772
137,800
$—
Molecular Partners AG
$486,302
$—
$—
$(78,562)
$—
$407,740
20,852
$—
Molecular Partners AG, ADR
$—
$ 63,474
$—
$(4,540)
$—
$ 58,934
2,987
$—
Otonomy, Inc.
$358,600
$143,338
$—
$(346,034)
$—
$155,904
81,200
$—
Rezolute, Inc.
$206,971
$—
$—
$(78,887)
$—
$128,084
17,262
$—
Rezolute, Inc., Warrants, Expiration Date 10/8/
2027
$56,253
$—
$—
$(17,350)
$—
$38,903
5,696
$—
Rhythm Pharmaceuticals, Inc.
$862,170
$180,000
$(11,627)
$(577,712)
$(798)
$452,033
34,612
$—
Scynexis, Inc.
$105,341
$—
$—
$(32,360)
$—
$72,981
13,770
$—
Scynexis, Inc., Warrants, Expiration Date 12/
21/2021
$63,727
$—
$—
$(62,148)
$—
$1,579
26,500
$—
Scynexis, Inc., Warrants, Expiration Date 3/8/
2023
$3,384
$—
$—
$(2,640)
$—
$744
2,520
$—
Scynexis, Inc., Warrants, Expiration Date 5/21/
2024
$100,276
$—
$—
$(50,361)
$—
$49,915
26,500
$—
Scynexis, Inc., Warrants, Expiration Date 1/1/
2099
$405,450
$—
$—
$(124,550)
$—
$280,900
53,000
$—
Seres Therapeutics, Inc.
$1,440,600
$922,196
$(88,621)
$(1,003,203)
$(3,556)
$1,267,416
182,100
$—
Talkspace, Inc.
$—
$550,000
$—
$(349,250)
$—
$200,750
55,000
$—
Ultragenyx Pharmaceutical, Inc.
$7,525,055
$—
$(1,279,953)
$(2,863,004)
$586,262
$3,968,360
44,000
$—
UniQure N.V.
$2,113,605
$—
$(491,142)
$(30,782)
$(170,437)
$1,421,244
44,400
$—
6
 
Value as of
12/31/2020
Purchases
at Cost*
Proceeds
from Sales*
Change in
Unrealized
Appreciation/
Depreciation*
Net
Realized Gain/
(Loss)*
Value as of
9/30/2021
Shares
Held as of
9/30/2021
Dividend
Income*
Information Technology:
 
 
 
 
 
 
 
 
Domo, Inc.
$—
$679,201
$—
$(28,506)
$—
$650,695
7,706
$—
WM Technology, Inc.
$—
$525,000
$—
$236,250
$—
$761,250
52,500
$—
Affiliated issuers no longer in the portfolio at
period end
$534,528
$114,782
$(1,325,790)
$(84,773)
$761,253
$—
—
$—
TOTAL OF AFFILIATED
COMPANIES TRANSACTIONS
$25,713,294
$7,244,741
$(5,196,241)
$(2,620,637)
$746,807
$25,887,964
1,869,973
$5,306
 
*
A portion of the amount shown may have been recorded when the Fund did not have ownership of at least 5% of the voting shares.
**
At September 30, 2021, the Fund no longer has ownership of at least 5% voting shares.
 
1
Non-income-producing security.
2
Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or availing of an exemption from registration, under
the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At September 30, 2021, these restricted securities amounted to $510,900,
which represented 0.3% of total net assets.
 
Security
Acquisition
Date
Cost
Value
Fisker, Inc.
10/29/2020
$260,000
$380,900
Immatics N.V.
6/30/2020
$100,000
$130,000
 
3
All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. As of September 30, 2021, securities subject to this type of arrangement
and related collateral were as follows:
 
Market Value of
Securities Loaned
Collateral
Received
$2,924,510
$2,979,268
 
4
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”).
5
Assets, other than investments in securities, less liabilities.
Note: The categories of investments are shown as a percentage of total net assets at September 30, 2021.
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.
■ Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Trustees.
■ Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.
■ Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and 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.
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
7
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 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.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of September 30, 2021, in valuing the Fund’s assets carried at fair value:  
Valuation Inputs
 
Level 1—
Quoted
Prices
Level 2—
Other
Significant
Observable
Inputs
Level 3—
Significant
Unobservable
Inputs
Total
Equity Securities:
 
 
 
 
Common Stocks
 
 
 
 
Domestic
$163,428,585
$—
$1,052,691
$164,481,276
International
29,512,072
13,254,885
295,079
43,062,036
Debt Securities:
 
 
 
 
Warrants
27,344
533,832
—
561,176
Repurchase Agreements
—
10,560,268
—
10,560,268
TOTAL SECURITIES
$192,968,001
$24,348,985
$1,347,770
$218,664,756
 
The following acronym(s) are used throughout this portfolio:
 
ADR
—American Depositary Receipt
8