Federated Hermes Strategic Value Dividend Fund Class R6 (SVALX)

Overview

This fund is designed to cater to investors seeking to achieve their investment objective through a portfolio primarily composed of high dividend-paying common stocks that also have the potential for dividend growth. The investment strategy is meticulously crafted, relying on the Adviser’s rigorous security selection process which emphasizes finding the best juxtaposition of dividend yield and the potential for dividend growth. This diligence extends to an examination of fundamental criteria that includes, but is not limited to, an evaluation of balance sheet strength, earnings growth, and the sustainability of cash flows. In navigating the complexities of global markets, the fund may also engage in the use of derivative contracts, such as forward contracts, aimed at managing or hedging against currency exposure risks, thereby aiming to protect and potentially enhance the fund's investment returns.

Products and Services

• High Dividend-Paying Common Stocks

  The fund's primary investment is in common stocks that not only pay high dividends but also have the potential for future dividend growth. This focus is geared towards generating regular income for investors, alongside the opportunity for capital appreciation through careful stock selection and portfolio management.

• Dividend Growth Potential

  Another cornerstone of the fund's investment approach is the emphasis on dividend growth potential. By targeting companies that are not just paying dividends but also have the potential to increase these dividends over time, the fund aims to provide investors with a growing income stream as well as the possibility for long-term capital appreciation.

• Derivative Contracts for Risk Management

  To protect against the intricacies of currency fluctuations which can impact international investments, the fund may utilize derivative contracts, such as forward contracts. These financial instruments are employed to manage or hedge the fund’s currency exposure, offering a strategic tool to mitigate risk while striving to maximize returns.