Federated Hermes Global Allocation Fund Class A Shares (FSTBX)

Overview

The fund is geared towards investors looking to diversify their portfolios by tapping into the potential of small- and medium-sized companies. These companies are selected for their growth prospects and are listed across major national securities exchanges, as well as the NASDAQ stock market and over-the-counter market. Understanding the importance of a global investment perspective, the fund also allocates up to 30% of its net assets to foreign securities, adding an international dimension to its portfolio. Moreover, the inclusion of fixed-income securities, American Depositary Receipts (ADRs), and derivatives or hybrid instruments in its investment arsenal allows for a strategic blend of assets aimed at optimizing returns while managing risk.

Products and Services

• Investment in Small- and Medium-Sized Companies

  The fund prioritizes investment in the common stocks of small- and medium-sized companies. These are entities that show potential for rapid growth and are listed on national securities exchanges, the NASDAQ stock market, and the over-the-counter market. This strategy seeks to harness the dynamic nature and growth potential of these companies.

• Foreign Securities Investment

  Aiming to capitalize on global market trends, up to 30% of the fund's net assets are allocated to investments in foreign securities. This portion of the portfolio adds an international flavor, potentially enhancing returns through exposure to global economic growth outside of the domestic market.

• Fixed-Income Securities

  The fund diversifies its investment approach by including fixed-income securities. These investments offer a steady income stream and can serve as a hedge against the volatility associated with equity markets, contributing to the overall stability of the portfolio.

• American Depositary Receipts (ADRs)

  By investing in ADRs, the fund gains exposure to foreign companies without the complexities of direct investments in overseas markets. ADRs represent shares in foreign companies but trade on U.S. exchanges, simplifying access to international markets while providing a layer of regulatory oversight.

• Use of Derivative Contracts and Hybrid Instruments

  The fund employs derivative contracts and hybrid instruments as part of its investment strategy. These financial instruments can be used for various purposes, including hedging against market risks, increasing exposure to certain assets or markets without direct investment, and potentially enhancing portfolio returns.