Federated Hermes Kaufmann Small Cap Fund Class A Shares (FKASX)

Overview

The company in question operates a fund that focuses on investing mainly in the common stocks of small companies. These companies are those that are listed on various major national securities exchanges, including the NASDAQ stock market, in addition to those traded on the over-the-counter market. The fund is dedicated to maintaining a significant portion of its investments in these small companies. Specifically, it commits to investing at least 80% of its net assets in such entities. These net assets include any funds borrowed for the purpose of investment. It is also committed to ensuring transparency and safeguarding shareholder interests by promising to notify its shareholders at least 60 days in advance of any changes to its investment policies. Particularly, if such changes would allow the fund to invest less than 80% of its net assets in small companies, shareholders would be duly informed.

Products and Services

• Investment in Small Company Stocks: The fund primarily focuses on investing in the common stocks of small companies. These are entities that are publicly traded on recognized national security exchanges, the NASDAQ stock market, and on the over-the-counter market. The intent behind focusing on small companies is likely driven by the potential for growth and significant returns on investment that these companies can offer. By concentrating on this segment, the fund seeks to tap into the growth potential that small companies present.

• Commitment to 80% Investment in Small Companies: A standout policy of the fund is its commitment to investing at least 80% of its net assets in small companies. This policy ensures that the fund stays true to its core investment strategy of focusing on small companies, providing a clear directive on how the assets are managed. The net assets figure includes any borrowing for investment purposes, underlining the fund's strategy to leverage additional capital, if necessary, to maintain its investment threshold.

• Notification Policy on Investment Changes: The fund also emphasizes its dedication to transparency and shareholder communication by instituting a policy that requires it to notify shareholders at least 60 days in advance of any policy changes. Specifically, this policy refers to changes that might allow the fund to invest less than 80% of its net assets in small companies. Such a policy is critical in ensuring that shareholders are well-informed of potential shifts in investment focus, allowing them to make timely decisions about their investments in the fund.