Federated Hermes Kaufmann Small Cap Fund Class R Shares (FKKSX)

Overview

The company represented is a mutual fund focused on investing predominantly in the equities of small companies. These companies are primarily found on national securities exchanges, the NASDAQ stock market, and over-the-counter markets. The fund is dedicated to maintaining a high level of investment in small companies, specifying that at least 80% of its net assets – including any borrowed amounts for investment purposes – will consistently be allocated towards such entities. This commitment to small-cap investment is fundamental to the fund's strategy and offers a substantial notice period to shareholders, extending 60 days before any policy alterations that would reduce its investment in small companies below the 80% threshold. This commitment underscores a strategic focus on leveraging the growth potential and market dynamics associated with small-cap companies.

Products and Services

The fund offers a singular investment product with distinct characteristics and policies designed to cater to investors interested in small-cap markets:

• Small-Cap Equity Investment: This is the core product of the fund, involving the investment of the majority of its assets into the common stocks of small companies. These investments are made across various platforms, including national security exchanges, the NASDAQ stock market, and the over-the-counter market. The strategy behind focusing on small-cap stocks is based on the potential for higher growth rates compared to their larger counterparts, albeit with an increased level of risk.
• Investment Policy Transparency: As part of its service to shareholders, the fund commits to a high level of transparency regarding its investment policies. Specifically, it promises to notify shareholders at least 60 days in advance of any changes to its policy that would allow the fund to invest less than 80% of its net assets in small companies. This policy is pivotal in maintaining investor trust and ensuring that investors are well-informed of any significant strategic shifts that could impact the risk and return profile of their investments.