Federated Hermes Kaufmann Large Cap Fund 6/30/21 Fund description The fund seeks to provide capital appreciation by investing primarily in securities of large-cap companies. Utilizing an intensive, bottom-up security selection process, the fund focuses on companies that exhibit Fund facts positive growth characteristics. Performance inception date Average annual total returns (%) Performance shown is before tax. 12/5/07 Expense ratio* Since Before After Benchmark 3-month YTD 1-year 3-year 5-year 10-year inception waivers waivers Russell 1000® Growth Index R6 Shares 11.44 8.77 30.55 21.52 20.24 16.28 13.08 0.87 0.78 Morningstar category Institutional Shares 11.45 8.73 30.45 21.43 20.17 16.23 13.23 0.93 0.84 Large Growth A Shares (NAV) 11.36 8.57 30.11 21.13 19.86 15.94 12.94 1.18 1.09 Lipper classification A Shares (MOP) 5.24 2.61 22.96 18.87 18.52 15.28 12.47 1.18 1.09 Multi-Cap Growth Funds Benchmark 11.93 12.99 42.50 25.14 23.66 17.87 – – – Fund assets 50 $4.6 billion 42.50 41.70 Ticker symbols 40 R6 Shares - KLCSX 30.45 30 25.14 23.66 Institutional Shares - KLCIX 22.56 21.98 21.43 20.17 17.87 A Shares - KLCAX 20 16.23 15.99 Total returns (%) 11.93 C Shares - KLCCX 11.45 10.28 10 R Shares - KLCKX Key investment team 0 Hans Utsch 3-month 1-year 3-year 5-year 10-year Tom Brakel, M.D. Institutional Shares Benchmark Morningstar Category Average John Ettinger, CFA Jonathan Art Calendar year total returns (%) Mark Bauknight Barbara Miller 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Steven Abrahamson Institutional Shares 28.55 38.14 0.12 23.57 4.62 3.13 12.12 37.03 26.37 -5.90 Stephen DeNichilo, CFA Benchmark 38.49 36.39 -1.51 30.21 7.08 5.67 13.05 33.48 15.26 2.64 Vivian Wohl Morningstar Category Average 35.86 31.90 -2.09 27.67 3.23 3.60 10.00 33.92 15.34 -2.56 Performance 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. Current performance may be lower or higher than what is stated. To view performance current to the most recent month-end, and for after-tax returns, contact us or visit FederatedInvestors.com. Maximum offering price figures reflect the maximum sales charge of 5.5% for A Shares. See the prospectus for other fees and expenses that apply to a continued investment in the fund. Total returns for periods of less than one year are cumulative. Prior to January 2, 2008, the fund’s initial seed capital was held as a cash position. In addition, the fund’s advisor waived fees and reimbursed expenses. In the absence of these circumstances, performance would have been lower. * The fund’s expense ratio is from the most recent prospectus. The expense ratio may reflect voluntary fee waivers and/or expense reimbursements determined by the fund’s Advisor and its affiliates. The voluntary waivers and/or reimbursements, if applicable, are in effect up to but not including the later of 1/1/22 or the date of the fund’s next effective prospectus. Not FDIC Insured • May Lose Value • No Bank Guarantee Distinguishing characteristics • Capital efficiency and transparency are built into the compensation structure Transparent and • Bonus pool is allocated according to individual’s contribution to results accountable process • Incentivized to optimize capital Team follows same 30-year philosophy and process used since inception of the Kaufmann strategy Tenured team, • Distinguished professionals with specialized industry ties; organized for full accountability differentiated portfolio • Continuity of team allows for constructive problem solving • Seeking a differentiated, large-cap portfolio Independent, proprietary research focuses on: Extensive research, • Exceptional business models long-term results • Positive inflections of business momentum • Clear pathway to free cash flow growth Past performance is no guarantee of future results. Portfolio statistics Sector weightings (%) Weighted median P/E (LTM) 50.2x Information Technology 27.9 Weighted median P/E (NTM) 35.4x 44.1 22.9 Weighted median market cap $87.8 b Health Care 9.1 13.3 Number of securities 80 Consumer Discretionary 18.5 9.8 Annual portfolio turnover 25.83% Communication Services 12.6 9.2 Financials 2.3 Top holdings (%) 8.6 Industrials 6.4 Microsoft Corporation 4.2 4.2 Materials 1.0 Amazon.com, Inc. 3.6 1.4 Consumer Staples 3.9 Trane Technologies Public Limited Company 3.4 Real Estate 1.0 T-Mobile US, Inc. 3.3 1.7 Energy 0.7 Alphabet Inc. 3.1 0.3 Utilities 0.4 ServiceNow, Inc. 3.0 0.0 0.6 salesforce.com, inc. 2.9 Cash/Cash Equivalents 0.0 Facebook, Inc. 2.7 Federated Hermes Kaufmann Large Cap Fund ® The Sherwin-Williams Company 2.5 Russell 1000 Growth Index Visa Inc. 2.5 Total % of portfolio 31.2 Totals may not add up to 100% due to rounding. Portfolio composition is based on net assets at the close of business on 6/30/21 and may not necessarily reflect adjustments that are routinely made when presenting net assets for formal financial statement purposes. Because this is a managed portfolio, the investment mix will change. 2 Federated Hermes Kaufmann Large Cap Fund Highlights • Global equity markets continued their ascent during the quarter • Investors shifted their preference back to growth stocks from value reversing a two-quarter value outperformance • Technology and Material sectors negatively contributed to the fund’s performance on a relative basis • Sector weighting hurt relative performance Looking back During the second quarter of 2021, the U.S. economy and most significant westernized economies continued their economic rebound after suffering from Covid-19 related government shutdowns, which caused economic devastation throughout 2020 and into 2021. Continued stimulus by central banks as well as fiscal responses helped to elevate financial markets and recover the economies hit by the lockdowns. Global equities continued their ascent in the U.S. to all time high levels with the help of stimulus and continued improvement of economic data. The U.S. equity markets rose during the quarter led by the S&P 500 Index, up 8.55%, followed by large-cap stocks, represented by the Russell 1000 Index, up 8.54%, followed by mid-cap stocks, represented by the Russell MidCap Index, up 7.50% followed by small-cap stocks, represented by the Russell 2000 Index, up 4.29%. Large-cap growth stocks outperformed large-cap value stocks, a reversal of a two-quarter value trade. During the quarter, the portfolio team added new equity positions of the following: Chipotle Mexican Grill, CMG (new), Coinbase, COIN (new), Nextera Energy, NEE (new), Marvell Technology, MRVL, Schlumberger Ltd., SLB (new) and Adobe, ADBE (new). Also, during the quarter, the portfolio subtracted or reduced the following select equity positions in pursuit of better opportunities: Netflix, (exited), Vertex Pharmaceuticals, Abbott Laboratories, Workday and Roper Technologies (exited). The large-cap fund did not participate in any initial public offerings (IPOs) but did participate in one secondary offering during the quarter: Zai Lab Limited. Performance Federated Hermes Kaufmann Large Cap Fund Institutional Shares returned 11.45% at NAV for the three months ended June 30, 2021. That compares with its benchmark, the Russell 1000 Growth Index, which returned 11.93% during the same period. Performance contributors • Stocks that made a positive contribution to perfor Inc., Microsoft Corporation,mance IDEXX included Laboratories, Moderna, Alphabet and Genmab Performance detractors • Stocks that detracted fr om performance included Ultragenyx Pharmaceutical, Las Vegas Sands, Scotts Miracle-Gro Company, Coinbase Global and New Fortress Energy Performance 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. Current performance may be lower or higher than what is stated. To view performance current to the most recent month-end, and for after-tax returns, contact us or visit FederatedInvestors.com. How we are positioned As the U.S. economy continues through 2021, many unknowns remain, from the new composition of Washington D.C. to the sustainability of the current economic recovery. These questions among others are likely to persist throughout the year, which could cause market uncertainty. The U.S. equity market, however, continues to show resiliency throughout the year with the IPO market reaching record levels with the second quarter surpassing the first with issuance and capital raised. The U.S. IPO market priced 113 issuances, raising nearly $39.9 billion according to Renaissance Capital, an increase from 100 issuances in the first quarter of 2021. Despite the macro uncertainties, the Kaufmann team continues to be focused on finding and investing in companies that have little dependence on the economy, good or bad, to generate significant sales and earnings growth. This quarter the fund had approximately 73% of the portfolio invested in four sectors: Information Technology, Health Care, Consumer Discretionary and Communication Services. The sector weightings of the portfolio are a byproduct of our bottom-up stock selection strategy with a team of sector-specialist portfolio managers. These sectors also have historically provided good opportunities for bottom-up growth investors. We seek to find companies that have company-specific catalysts for growth rather than develop macro themes to construct sector weightings.