(a) As of the end of the period covered by this report, the
registrant has adopted a code of ethics (the “Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive
and Financial Officers”) that applies to the registrant’s Principal Executive Officer and Principal Financial Officer; the
registrant’s Principal Financial Officer also serves as the Principal Accounting Officer.
(c) There was no amendment to the registrant’s code
of ethics described in Item 2(a) above during the period covered by the report.
(d) There was no waiver granted, either actual or implicit,
from a provision to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.
(e) Not Applicable
(f)(3) The registrant hereby undertakes to provide any person,
without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400,
and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.
|
Item 3. |
Audit Committee Financial Expert |
The registrant’s Board has determined that each of
the following members of the Board’s Audit Committee is an “audit committee financial expert,” and is “independent,”
for purposes of this Item 3: John G. Carson, Thomas M. O’Neill and John S. Walsh.
|
Item 4. |
Principal Accountant Fees and Services |
(a) Audit Fees billed
to the registrant for the two most recent fiscal years:
Fiscal year ended 2026 - $408,476
Fiscal year ended 2025 - $406,082
(b) Audit-Related
Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2026 - $4,326*
Fiscal year ended 2025 - $4,326*
*Fiscal year ended 2026 & 2025 - Audit consent fee for
N-1A filing.
Amount requiring approval of the registrant’s Audit
Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(c) Tax Fees billed
to the registrant for the two most recent fiscal years:
Fiscal year ended 2026 - $0
Fiscal year ended 2025 - $0
Amount requiring approval of the registrant’s Audit
Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(d) All Other Fees
billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2026 - $0
Fiscal year ended 2025 - $0
Amount requiring approval of the registrant’s Audit
Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(e)(1) Audit Committee Policies regarding Pre-approval
of Services.
The Audit Committee is required to pre-approve
audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair
the auditor’s independence. The Audit Committee is required to pre-concur with independence conclusions made by the independent
auditor regarding non-audit services to be provided by the independent auditor to the Funds, the Funds Board of Directors, or any entity
that is controlled directly or indirectly by the Funds. Unless a type of service to be provided by the independent auditor has received
general pre-approval, it will require specific pre-approval (and pre-concurrence for non-audit services) by the Audit Committee. Any proposed
services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.
Certain services have the general pre-approval
of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically
provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor
without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee
will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will
not delegate to management its responsibilities to pre-approve services performed by the independent auditor.
The Audit Committee has delegated pre-approval/pre-concurrence
authority to its chairman (the “Chairman”) for services that do not exceed a specified dollar threshold. The Chairman or Chief
Audit Executive will report any such pre-approval/pre-concurrence decisions to the Audit Committee at its next scheduled meeting. The
Committee will designate another member with such pre-approval/pre-concurrence authority when the Chairman is unavailable.
AUDIT SERVICES
The annual audit services engagement
terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee will approve, if necessary, any
changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.
In addition to the annual audit services
engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other audit services,
which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain audit
services; with limited exception, all other audit services must be specifically pre-approved by the Audit Committee.
AUDIT-RELATED SERVICES
Audit-related services are assurance
and related services that are reasonably related to the performance of the audit or review of the RIC’s financial statements or
that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of audit-related services
does not impair the independence of the auditor, and has pre-approved certain audit-related services; all other audit-related services
must be specifically pre-approved by the Audit Committee.
TAX SERVICES
The Audit Committee believes that the
independent auditor can provide tax services to the RIC such as tax compliance, tax planning and tax advice without impairing the auditor’s
independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially
recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported
in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved/pre-concurred certain tax services; with limited
exception, all tax services involving large and complex transactions must be specifically pre-approved/pre-concurred by the Audit Committee.
ALL OTHER SERVICES
With respect to the provision of permissible
services other than audit, review or attest services the pre-approval/pre-concurrence requirement is waived if:
(1)
With respect to such services rendered to the Funds, the aggregate amount of all such services provided constitutes no more than
five percent of the total amount of revenues paid by the audit client to its accountant during the fiscal year in which the services are
provided; and,
(2)
With respect to such services rendered to the Fund’s investment adviser ( the “Adviser”)and any entity controlling,
controlled by to under common control with the Adviser such as affiliated non-U.S. and U.S. funds not under the Audit Committee’s
purview and which do not fall within a category of service which has been determined by the Audit Committee not to have a direct impact
on the operations or financial reporting of the RIC, the aggregate amount of all services provided constitutes no more than five percent
of the total amount of revenues paid to the RIC’s auditor by the RIC, its Adviser and any entity controlling, controlled by, or
under common control with the Adviser during the fiscal year in which the services are provided; and
(3)
Such services were not recognized by the issuer or RIC at the time of the engagement to be non-audit services; and
(4)
Such services are promptly brought to the attention of the Audit Committee and approved prior to the completion of the audit by
the Audit Committee or by one or more members of the Audit Committee who are members of the Board of Directors to whom authority to grant
such approvals has been delegated by the Audit Committee.
The Audit Committee may grant general
pre-approval/pre-concurrence to those permissible non-audit services which qualify for pre-approval and which it believes are routine
and recurring services, and would not impair the independence of the auditor.
The Securities and Exchange Commission’s
(the “SEC”) rules and relevant guidance should be consulted to determine the precise definitions of these services and applicability
of exceptions to certain of the prohibitions.
PRE-APPROVAL FEE LEVELS
Pre-approval fee levels for all services
to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels
will require specific pre-approval by the Audit Committee.
PROCEDURES
Requests or applications to provide services
that require specific approval/concurrence by the Audit Committee will be submitted to the Audit Committee by the Fund’s Principal
Accounting Officer and/or the Chief Audit Executive of Federated Hermes, Inc., only after those individuals have determined that the request
or application is consistent with the SEC’s rules on auditor independence.
(e)(2) Percentage of services identified in items 4(b)
through 4(d) that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation
S-X:
4(b)
Fiscal year ended 2026 – 0%
Fiscal year ended 2025 - 0%
Percentage of services provided to the registrant’s
Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant
that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and
0% respectively.
4(c)
Fiscal year ended 2026 – 0%
Fiscal year ended 2025 – 0%
Percentage of services provided to the registrant’s
Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant
that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and
0% respectively.
4(d)
Fiscal year ended 2026 – 0%
Fiscal year ended 2025 – 0%
Percentage of services provided to the registrant’s
Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant
that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and
0% respectively.
(f)
NA
(g)
Non-Audit Fees billed to the registrant, the registrant’s Adviser, and certain entities controlling, controlled by or under
common control with the Adviser:
Fiscal year ended 2026 - $810,400
Fiscal year ended 2025 - $165,250
(h)
The registrant’s Audit Committee has considered that the provision of non-audit services that were rendered to the registrant’s
Adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant’s independence.
(i)
Not Applicable
(j)
Not Applicable
|
Item 5. |
Audit Committee of Listed Registrants |
Not Applicable
|
Item 6. |
Schedule of Investments |
(a) The registrant’s Schedule of Investments is included
as part of the Financial Statements filed under Item 7 of this form.
(b) Not Applicable
|
Item 7. |
Financial Statements and Financial Highlights for Open-End Management Companies |
Annual Financial Statements
and Additional Information
Federated
Hermes Capital Reserves Fund
A
Portfolio of Federated Hermes Money Market Obligations Trust
The Fund
is a Retail Money Market Fund and is only available for investment to accounts beneficially owned by natural persons.
Not FDIC Insured ▪ May
Lose Value ▪ No Bank Guarantee
Portfolio
of Investments
|
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|
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|
American
Honda Finance Corp., (Honda Motor Co., Ltd. Support Agreement), 3.956% - 4.059%, 8/13/2026 - 8/26/2026 |
|
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|
|
Mercedes-Benz
Finance NA LLC, (Mercedes-Benz Group AG GTD), 3.762%, 8/4/2026 |
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|
|
|
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|
|
ASB
Bank Ltd., 4.081%, 3/2/2027 |
|
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|
Australia
& New Zealand Banking Group Ltd., 4.396%, 7/20/2027 |
|
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|
|
Bank
of New York Mellon, N.A., 4.071%, 3/4/2027 |
|
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|
|
Bank
of Nova Scotia, 4.169%, 5/26/2027 |
|
|
|
|
Bedford
Row Funding Corp., (Royal Bank of Canada GTD), 4.007%, 9/9/2026 |
|
|
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|
BofA
Securities, Inc., 3.825%, 10/9/2026 |
|
|
|
|
DZ
Bank AG Deutsche Zentral-Genossenschaftsbank, 4.273%, 2/23/2027 |
|
|
|
|
HSBC
USA, Inc., 3.915%, 8/17/2026 |
|
|
|
|
National
Bank of Canada, 3.774% - 4.049%, 1/8/2027 - 5/6/2027 |
|
|
|
|
Podium
Funding Trust, (Bank of Montreal COL), 4.101%, 1/20/2027 |
|
|
|
|
Royal
Bank of Canada, 4.168%, 6/1/2027 |
|
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|
Toronto
Dominion Bank, 4.364%, 7/6/2027 |
|
|
|
|
Westpac
Banking Corp. Ltd., 3.971% - 4.150%, 8/6/2026 - 9/22/2026 |
|
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|
|
|
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|
PPG
Industries, Inc., 3.999% - 4.024%, 8/3/2026 - 9/10/2026 |
|
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|
|
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|
|
Avangrid,
Inc., 3.811% - 3.843%, 8/3/2026 - 8/7/2026 |
|
|
|
|
Duke
Energy Corp., 3.761%, 8/3/2026 |
|
|
|
|
NextEra
Energy Capital Holdings, Inc., 3.966% - 3.969%, 8/19/2026 - 8/25/2026 |
|
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|
|
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|
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|
|
Old
Line Funding, LLC, 3.992% - 3.994%, 9/21/2026 - 1/13/2027 |
|
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|
|
|
|
|
|
Mondelez
International, Inc., 3.792%, 8/4/2026 |
|
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|
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|
|
Nutrien
Ltd., 4.006% - 4.015%, 8/6/2026 - 8/20/2026 |
|
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|
|
|
|
|
|
Verizon
Communications, Inc., 3.903% - 3.973%, 8/5/2026 - 8/26/2026 |
|
|
|
|
|
|
|
|
|
FedEx
Corp., 4.056% - 4.173%, 8/10/2026 - 9/15/2026 |
|
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|
|
|
|
|
|
Southern
Co. Gas Capital, 3.852%, 8/3/2026 |
|
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|
|
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|
|
Toyota
Motor Credit Corp., (Toyota Motor Corp. Support Agreement), 3.980% (SOFR +0.330%), 8/3/2026 |
|
|
|
|
|
|
|
|
|
Bank
of Nova Scotia, 3.950% (SOFR +0.300%), 8/3/2026 |
|
|
|
|
Canadian
Imperial Bank of Commerce, 4.020% (SOFR +0.370%), 8/3/2026 |
|
|
|
|
Collateralized
Commercial Paper V Co. LLC, (J.P. Morgan Securities LLC COL), 3.980% (SOFR +0.330%), 8/3/2026 |
|
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|
|
Colorado
Health Facilities Authority, Series 2016B, (UMB Bank, N.A. LOC), 4.240%, 8/6/2026 |
|
|
|
|
Connecticut
Water Co., Series 2004, (Citizens Bank, N.A. LOC), 3.860%, 8/6/2026 |
|
|
|
|
EG
Irrevocable Life Insurance Trust, (BOKF, N.A. LOC), 3.900%, 8/6/2026 |
|
Annual
Financial Statements and Additional Information
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
Mason
Harrison Ratliff Enterprises, LLC, (BOKF, N.A. LOC), 3.900%, 8/6/2026 |
|
|
|
|
Nuveen
Credit Strategies Income Fund, Taxable Preferred Shares (Series A), (Societe Generale SA LOC),
3.780%,
8/5/2026 |
|
|
|
|
Nuveen
Preferred Income Opportunities Fund, Taxable Preferred Shares (Series A), (Sumitomo Mitsui Trust Bank Ltd.
LOC),
3.780%, 8/6/2026 |
|
|
|
|
Nuveen
Preferred Income Opportunities Fund, VRDNs (Series A), (Barclays Bank PLC LIQ), 3.780%, 8/6/2026 |
|
|
|
|
Opler
2013 Irrevocable Trust, Series 2024, (BOKF, N.A. LOC), 3.900%, 8/6/2026 |
|
|
|
|
Rockcrest,
LLC, (BOKF, N.A. LOC), 3.900%, 8/6/2026 |
|
|
|
|
Taxable
Muni Funding Trust 2019-007, Taxable Municipal Funding Trust (Series 2019-007) VRDNs, (Barclays Bank PLC
LOC),
3.970%, 8/6/2026 |
|
|
|
|
Taxable
Muni Funding Trust 2020-011, (Series 2020-011) VRDNs, (Barclays Bank PLC LOC), 3.970%, 8/6/2026 |
|
|
|
|
Taxable
Muni Funding Trust 2024-010, (Series 2034-010) VRDNs, (Barclays Bank PLC LOC), 3.970%, 8/6/2026 |
|
|
|
|
Taxable
Muni Funding Trust 2026-007, Barclays Taxable Trust (Series 2026-007) VRDNs, (Barclays Bank PLC LOC),
3.970%,
8/6/2026 |
|
|
|
|
Taxable
Tender Option Bond Trust 2021-MIZ9064TX, (Series 2021-MIZ9064TX) VRDNs, (Mizuho Bank Ltd. LIQ)/(Mizuho
Bank
Ltd. LOC), 4.150%, 8/6/2026 |
|
|
|
|
Taxable
Tender Option Bond Trust 2022-MIZ9084TX, (Series 2022-MIZ9084TX) VRDNs, (Mizuho Bank Ltd. LIQ)/(Mizuho
Bank
Ltd. LOC), 4.150%, 8/6/2026 |
|
|
|
|
Taxable
Tender Option Bond Trust 2022-MIZ9094TX, (Series 2022-MIZ9094TX) VRDNs, (Mizuho Bank Ltd. LIQ)/(Mizuho
Bank
Ltd. LOC), 4.150%, 8/6/2026 |
|
|
|
|
The
Niki Woomer Trust Dated July 16, 2025, (BMO Bank, N.A. LOC), 3.770%, 8/6/2026 |
|
|
|
|
Thomas
J. Nemic 2020 Irrevocable Trust, Series 2026, (Huntington National Bank LOC), 3.900%, 8/6/2026 |
|
|
|
|
Yavapai
County, AZ IDA - Recovery Zone Facility (Drake Cement LLC), Taxable (Series 2015) Weekly VRDNs, (Bank of
Nova
Scotia LOC), 3.700%, 8/6/2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chariot
Funding LLC, 4.020% (SOFR +0.370%), 8/3/2026 |
|
|
|
|
Old
Line Funding, LLC, 3.950% (SOFR +0.300%), 8/3/2026 |
|
|
|
|
Old
Line Funding, LLC, 4.000% (SOFR +0.350%), 8/3/2026 |
|
|
|
|
Thunder
Bay Funding, LLC, 3.950% (SOFR +0.300%), 8/3/2026 |
|
|
|
|
Thunder
Bay Funding, LLC, 4.000% (SOFR +0.350%), 8/3/2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Roberts
Insurance Trusts, LLC, (Federal Home Loan Bank of Des Moines LOC), 3.720%, 8/6/2026 |
|
|
|
|
|
|
|
|
|
Texas
State, Veterans Bonds (Taxable Series 2023A) Weekly VRDNs, (Texas State LIQ), 3.720%, 8/5/2026 |
|
|
|
|
|
|
|
|
|
OTHER
REPURCHASE AGREEMENTS—12.9% |
|
|
|
|
Interest
in $125,000,000 joint repurchase agreement, 3.69% dated 7/31/2026 under which BNP Paribas SA will
repurchase
the securities provided as collateral for $125,038,438 on 8/3/2026. The securities provided as collateral at the
end
of the period held with BNY Mellon, tri-party agent, were asset-backed securities, collateralized mortgage-backed
obligations,
corporate bonds, medium-term notes and sovereign debt securities with various maturities to 12/31/2149
and
the market value of those underlying securities was $127,539,283. |
|
|
|
|
Interest
in $50,000,000 joint repurchase agreement, 4.25% dated 1/29/2024 under which Bank of America Securities, Inc.
will
repurchase the securities provided as collateral for $55,961,806 on 11/4/2026. The securities provided as collateral at
the
end of the period held with BNY Mellon, tri-party agent, were American depository receipts and an exchange traded
fund
and the market value of those underlying securities was $51,198,504. |
|
|
|
|
Interest
in $35,000,000 joint repurchase agreement, 4.03% dated 2/6/2025 under which Citigroup Global Markets, Inc.
will
repurchase the securities provided as collateral for $37,276,390 on 9/10/2026. The securities provided as collateral at
the
end of the period held with BNY Mellon, tri-party agent, were convertible bonds and corporate bonds with various
maturities
to 9/30/2053 and the market value of those underlying securities was $35,832,372. |
|
|
|
|
Interest
in $65,000,000 joint repurchase agreement, 4.04% dated 10/24/2024 under which Citigroup Global Markets, Inc.
will
repurchase the securities provided as collateral for $70,003,989 on 9/10/2026. The securities provided as collateral at
the
end of the period held with BNY Mellon, tri-party agent, were convertible bonds and corporate bonds with various
maturities
to 8/15/2032 and the market value of those underlying securities was $66,544,675. |
|
Annual
Financial Statements and Additional Information
|
|
|
|
|
|
|
|
OTHER
REPURCHASE AGREEMENTS—continued
|
|
|
|
|
Repurchase
agreement, 3.73% dated 7/31/2026 under which HSBC Securities (USA), Inc. will repurchase the securities
provided
as collateral for $118,036,678 on 8/3/2026. The securities provided as collateral at the end of the period held
with
BNY Mellon, tri-party agent, were corporate bonds, medium-term notes, sovereign debt securities, U.S. Government
Agency
securities and U.S. Treasury securities with various maturities to 12/31/2079 and the market value of those
underlying
securities was $120,360,047. |
|
|
|
|
Interest
in $50,000,000 joint repurchase agreement, 4.03% dated 11/12/2024 under which Mizuho Securities USA, Inc.
will
repurchase the securities provided as collateral for $53,733,347 on 9/10/2026. The securities provided as collateral at
the
end of the period held with BNY Mellon, tri-party agent, were mortgage-backed securities with various maturities to
12/26/2070
and the market value of those underlying securities was $51,353,784. |
|
|
|
|
Repurchase
agreement, 4.19% dated 2/5/2025 under which Wells Fargo Securities LLC will repurchase the securities
provided
as collateral for $26,850,583 on 11/3/2026. The securities provided as collateral at the end of the period held
with
BNY Mellon, tri-party agent, were convertible bonds with various maturities to 3/15/2030 and the market value of
those
underlying securities was $25,509,535. |
|
|
|
|
Repurchase
agreement, 4.19% dated 2/12/2025 under which Wells Fargo Securities LLC will repurchase the securities
provided
as collateral for $26,812,757 on 10/28/2026. The securities provided as collateral at the end of the period held
with
BNY Mellon, tri-party agent, were convertible bonds with various maturities to 3/15/2031 and the market value of
those
underlying securities was $25,509,081. |
|
|
|
|
TOTAL
OTHER REPURCHASE AGREEMENTS |
|
|
|
|
REPURCHASE
AGREEMENTS—11.9% |
|
|
|
|
Interest
in $1,600,000,000 joint repurchase agreement, 3.65% dated 7/31/2026 under which BNP Paribas SA will
repurchase
the securities provided as collateral for $1,600,486,667 on 8/3/2026. The securities provided as collateral at
the
end of the period held with BNY Mellon, tri-party agent, were U.S. Government Agency securities and U.S. Treasury
securities
with various maturities to 8/25/2056 and the market value of those underlying securities was $1,636,958,362. |
|
|
|
|
CERTIFICATES
OF DEPOSIT—9.3% |
|
|
|
|
|
|
|
|
|
Bank
of Montreal, 4.250%, 6/9/2027 |
|
|
|
|
Canadian
Imperial Bank of Commerce, 3.800% - 4.250%, 11/3/2026 - 3/22/2027 |
|
|
|
|
Royal
Bank of Canada, 4.000%, 3/12/2027 |
|
|
|
|
Royal
Bank of Canada, Three World Financial Center Branch, 3.910%, 10/7/2026 |
|
|
|
|
Toronto
Dominion Bank, 3.780% - 4.250%, 11/16/2026 - 5/11/2027 |
|
|
|
|
Westpac
Banking Corp. Ltd., 3.840% - 4.100%, 10/6/2026 - 5/18/2027 |
|
|
|
|
TOTAL
CERTIFICATES OF DEPOSIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank
of America N.A., 4.170%, 8/4/2026 |
|
|
|
|
TOTAL
INVESTMENT IN SECURITIES—99.7%
(AT
AMORTIZED COST)3
|
|
|
|
|
OTHER
ASSETS AND LIABILITIES - NET—0.3%4
|
|
|
|
|
|
|
Securities that are subject to the federal
alternative minimum tax (AMT) represent 0.8% of the Fund’s portfolio as calculated based upon total
market value (Unaudited).
|
|
Discount
rate at time of purchase for discount issues, or the coupon for interest-bearing issues. |
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Floating/variable
note with current rate and current maturity or next reset date shown. Certain variable rate securities are not based on a published reference
rate
and
spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference
rate and spread in
their
description above. |
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Also
represents cost of investments for federal tax purposes. |
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Assets,
other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Note: The categories of investments are
shown as a percentage of net assets at July 31, 2026.
Various inputs are used in determining the
value of the Fund’s investments. These inputs are summarized in the three broad levels listed
below:
Level 1—quoted prices in active markets
for identical securities.
Level 2—other significant observable
inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk,
etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs
(including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing
securities are not an indication of the risk associated with investing in those securities.
Annual
Financial Statements and Additional Information
In valuing the Fund’s
assets as of July 31, 2026, all investments of the Fund are valued using amortized cost, which is a methodology utilizing
Level 2 inputs.
The
following acronym(s) are used throughout this portfolio: |
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—Industrial
Development Authority |
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—Secured
Overnight Financing Rate |
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—Variable
Rate Demand Notes |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Financial
Highlights
(For a Share Outstanding Throughout Each
Period)
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Net Asset
Value, Beginning of Period |
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Income
From Investment Operations: |
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Total
from Investment Operations |
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Distributions
from net income |
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Distributions
from net realized gain |
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Net
Asset Value, End of Period |
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Ratios
to Average Net Assets: |
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Expense
waiver/reimbursement6
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Net
assets, end of period (000 omitted) |
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Per
share numbers have been calculated using the average shares method. |
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Represents
less than $0.001. |
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Based
on net asset value. |
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Amount
does not reflect net expenses incurred by investment companies in which the Fund may invest. |
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The
net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 1.02%, 1.02%, 1.02% and
1.02% for the
years
ended July 31, 2026, 2025, 2024 and 2023, respectively, after taking into account these expense reductions. |
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|
This
expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense
waiver/
reimbursement
recorded by investment companies in which the Fund may invest. |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Statement
of Assets and Liabilities
July 31, 2026
|
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Investment
in securities, at value |
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Investment
in repurchase agreements and other repurchase agreements |
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Investment
in securities, at amortized cost and fair value |
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Payable
for distribution services fee (Note 5)
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Payable
for other service fees (Notes 2 and 5)
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Payable
for transfer agent fees |
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Payable
for share registration costs |
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Payable
for portfolio accounting fees |
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Income
distribution payable |
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Payable
for investment adviser fee (Note 5)
|
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Payable
for administrative fee (Note 5)
|
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Accrued
expenses (Note 5) |
|
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Net
assets for 2,695,032,582 shares outstanding |
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Total
distributable earnings (loss) |
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Net Asset
Value, Offering Price and Redemption Proceeds Per Share: |
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$2,695,032,326
÷ 2,695,032,582 shares outstanding, no par value, unlimited shares authorized |
|
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Statement
of Operations
Year Ended July 31,
2026
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Investment
adviser fee (Note 5)
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Administrative
fee (Note 5)
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Directors’/Trustees’
fees (Note 5)
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Distribution
services fee (Note 5)
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Other
service fees (Notes 2 and 5) |
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Portfolio
accounting fees |
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Waiver
of investment adviser fee (Note 5)
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Waiver
of other operating expenses (Notes 2 and 5) |
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Reduction
of custodian fees (Note 6)
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TOTAL
WAIVERS AND REDUCTION |
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Net
realized gain on investments |
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Change
in net assets resulting from operations |
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See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Statement
of Changes in Net Assets
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Increase
(Decrease) in Net Assets |
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CHANGE
IN NET ASSETS RESULTING FROM OPERATIONS |
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Distribution
to Shareholders |
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Proceeds
from sale of shares |
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Net
asset value of shares issued to shareholders in payment of distributions declared |
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CHANGE
IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS |
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See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Notes to
Financial Statements
Federated Hermes Money Market Obligations
Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the
“Act”), as an open-end, management investment company. The Trust consists of 15 portfolios. The financial statements included
herein are only those of Federated Hermes Capital Reserves Fund
(the “Fund”), a diversified portfolio. The financial statements of the other
portfolios are presented separately. The assets of each portfolio are segregated and a shareholder’s interest is limited to the
portfolio in which shares are held. Each portfolio pays its own
expenses. The investment objective of the Fund is to provide current income
consistent with stability of principal and liquidity.
The Fund operates as
a retail money market fund. As a retail money market fund, the Fund: (1) will generally continue to use amortized
cost to value its portfolio securities and transact at a stable $1.00 net asset value (NAV); (2) has adopted policies and procedures
reasonably designed to limit investments in the Fund to accounts beneficially owned by natural persons as required for a retail
money market fund by Rule 2a-7 under the Act; and (3) may impose a discretionary liquidity fee up to 2% of the value of the shares redeemed
if the Fund’s Board of Trustees (the “Trustees”), or its delegate, determines such liquidity fee is in the best interest
of the Fund.
2. SIGNIFICANT
ACCOUNTING POLICIES
The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of its financial statements.
These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Securities
are valued at amortized cost. The amortized cost method of valuation generally prescribes that an investment is valued at its acquisition
cost as adjusted daily for amortization of premium or accretion of discount to the specified redemption value on the nearest call,
demand or maturity date, as appropriate. If amortized cost is determined not to approximate fair value, the value of the portfolio securities
will be determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the
fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share,
and the actual value obtained could be materially different.
Pursuant to Rule 2a-5
under the Act, the Trustees have designated Federated Investment Management Company (the “Adviser”) as the
Fund’s valuation designee to perform any fair value determinations for securities and other assets held by the Fund. The Adviser
is subject to the Trustees’ oversight and certain reporting
and other requirements intended to provide the Trustees the information needed to
oversee the Adviser’s fair value determinations.
The Adviser, acting through
its valuation committee (“Valuation Committee”), is responsible for determining the fair value of investments.
The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser’s affiliated companies and determines
fair value of securities and oversees the comparison of amortized cost to market-based value. The Valuation Committee is also
authorized to use pricing services to provide fair value evaluations of the current value of certain investments for purposes of monitoring
the relationship of market-based value and amortized cost. The Valuation Committee employs various methods for reviewing third-party
pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods
(including key inputs and assumptions), and review of price challenges by the Adviser based on recent market activity. In the event
that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value
of the investment in accordance with procedures adopted by the Adviser. The Trustees periodically review the fair valuations made by
the Valuation Committee. The Trustees have also approved the Adviser’s fair valuation and significant events procedures as part
of the Fund’s compliance program and will review any changes
made to the procedures.
The
Fund may invest in repurchase agreements for short-term liquidity purposes. It is the policy of the Fund to require the other party to
a repurchase agreement to transfer to the Fund’s custodian
or sub-custodian eligible securities or cash with a market value (after transaction
costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred
to accounts with the custodian or sub-custodian in which the Fund holds a “securities entitlement” and exercises “control”
as those terms are defined in the Uniform Commercial Code. Certain
repurchase agreements may be structured as loans secured by a security
interest or lien on the eligible securities. The Fund has established procedures for monitoring the market value of the transferred securities
and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also
allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase
price or in exchange for other eligible securities of equivalent market value.
The insolvency of the
other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause
the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund
in excess of the repurchase price and related transaction costs must be remitted to the other party.
The Fund may enter into
repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the
custodian or sub-custodian for investment companies and other clients advised by the Adviser and its affiliates. The Fund will participate
on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase
agreements and in its share of proceeds from any repurchase or other disposition of such securities.
Annual
Financial Statements and Additional Information
Repurchase
agreements are subject to Master Netting Agreements which are agreements between the Fund and its counterparties that
provide for the net settlement of all transactions and collateral with the Fund, through a single payment, in the event of default or
termination. Amounts presented on the Portfolio of Investments
and Statement of Assets and Liabilities are not net settlement amounts but
gross. As indicated above, the cash or securities to be repurchased, as shown on the Portfolio of Investments, exceeds the repurchase
price to be paid under the agreement reducing the net settlement amount to zero.
Investment Income, Gains and Losses, Expenses and Distributions
Investment
transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an
identified-cost basis. Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date.
Distributions of net investment income, if any, are declared daily and paid monthly. In addition, distributions of capital gains, if any,
are declared and paid at least annually. Amortization/accretion
of premium and discount is included in investment income. The detail of the
total fund expense waivers and reduction of $4,086,371 is disclosed in various locations in this Note 2,
Note 5
and Note 6.
The
Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund to unaffiliated financial intermediaries or to
Federated Shareholder Services Company (FSSC) for providing services
to shareholders and maintaining shareholder accounts. Subject to
the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees. In addition, unaffiliated
third-party financial intermediaries may waive other service fees. This waiver can be modified or terminated at any time. For the
year ended July 31, 2026, the Fund incurred $6,995,430 of other service fees.
It
is the Fund’s policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986 (the “Code”) and
to distribute to shareholders each year substantially all of its
income. Accordingly, no provision for federal income tax is necessary. As of and during the year
ended July 31, 2026, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if
any, related to tax liabilities as income tax expense in the Statement
of Operations. As of July 31, 2026, tax years 2023 through 2026
remain subject to examination by the Fund’s major tax jurisdictions, which include the United States of America and the Commonwealth
of Massachusetts.
When-Issued and Delayed-Delivery Transactions
The
Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains
security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased
on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses
may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the
contract.
The
Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered
for public sale without first being registered, or being able
to take advantage of an exemption from registration, under the Securities Act of
1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale
without first being registered, the issuer of the restricted security
has agreed to register such securities for resale, at the issuer’s expense, either
upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be
resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria
established by the Trustees. The Fund will not incur any registration costs upon such resales. Restricted securities are valued at amortized
cost in accordance with Rule 2a-7 under the Act.
The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the
amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ materially from
those estimated. The Fund applies investment company accounting
and reporting guidance.
3. SHARES
OF BENEFICIAL INTEREST
The following table summarizes share activity:
|
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|
|
|
|
|
|
Shares
issued to shareholders in payment of distributions declared |
|
|
|
|
|
|
NET
CHANGE RESULTING FROM FUND SHARE TRANSACTIONS |
|
|
Annual
Financial Statements and Additional Information
4. FEDERAL
TAX INFORMATION
The tax character of distributions as reported
on the Statement of Changes in Net Assets for the years ended July 31, 2026 and 2025,
was as follows:
|
|
For
tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
As of July 31, 2026, the components of distributable
earnings on a tax-basis were as follows:
Undistributed
ordinary income1
|
|
|
|
For
tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings. |
5. INVESTMENT
ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The
advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.15% of the Fund’s average daily net assets.
Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or
reimburse certain operating expenses of the Fund for competitive reasons such as to maintain the Fund’s expense ratio, or as and
when appropriate, to maintain positive or zero net yields. For
the year ended July 31, 2026, the Adviser voluntarily waived $1,237,898 of its
fee.
Federated
Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and
services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated
Hermes Funds subject to a fee under the Administrative Services
Agreement. The fee paid to FAS is based on the average daily net assets
of the Investment Complex as specified below:
|
|
Average
Daily Net Assets
of
the Investment Complex |
|
|
on
assets up to $50 billion |
|
|
on
assets over $50 billion |
Subject to the terms described in the Expense
Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the year ended
July 31, 2026, the annualized fee paid to FAS was 0.077% of average daily net assets of the Fund.
In addition, FAS may charge certain out-of-pocket
expenses to the Fund.
Distribution Services Fee
The
Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund
will compensate Federated Securities Corp. (FSC), the principal
distributor, from the daily net assets of the Fund’s shares to finance activities intended
to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at 0.55% of average daily net
assets, annually, to compensate FSC. Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive
any portion of its fee. For the year ended July 31, 2026, FSC waived $2,798,172 of its fees. When FSC receives fees, it may pay some
or all of them to financial intermediaries whose customers purchase shares. For the year ended July 31, 2026, FSC retained $1,721 of
fees paid by the Fund. For the year ended July 31, 2026, the Fund incurred $15,389,946 of distribution services fee.
For
the year ended July 31, 2026, FSSC received $1,570 of other service fees disclosed in Note 2.
Due
to the possibility of changes in market conditions and other factors, there can be no assurance that the level of waiver/reimbursement/reduction
of Fund expenses reflected in the financial highlights will be maintained in the future. However, the Adviser and
certain of its affiliates (which may include FSC, FAS and FSSC) on their own initiative have agreed to waive certain amounts of their
respective fees and/or reimburse expenses. Total annual fund operating
expenses (as shown in the financial highlights, excluding interest expense,
extraordinary expenses and proxy-related expenses paid by the Fund, if any) and the Fund’s share of the fees and expenses of the
investments in affiliated funds paid by the Fund (after the voluntary waivers and reimbursements) will not exceed 1.02% (the “Fee
Limit”), up to but not including the later of (the “Termination
Date”): (a) October 1, 2027; or (b) the date of the Fund’s next effective Prospectus.
While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to
the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the approval
of the Trustees.
Annual
Financial Statements and Additional Information
Directors’/Trustees’
and Miscellaneous Fees
Certain
Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate
payment, Independent Directors’/Trustees’ fees and
certain expenses related to conducting meetings of the Directors/Trustees and other
miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related
to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous
Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
Through arrangements with the Fund’s
custodian, net credits realized as a result of uninvested cash balances were used to offset custody expenses.
For the year ended July 31, 2026, the Fund’s expenses were offset by $50,301 under these arrangements.
A substantial portion of the Fund’s
portfolio may be comprised of obligations of banks. As a result, the Fund may be more susceptible to any
economic, business, political or other developments which generally affect these entities.
The
Fund may place its cash on deposit with financial institutions in the United States, which is insured by the Federal Deposit Insurance
Corporation (FDIC) up to $250,000. The Fund’s credit risk
in the event of failure of these financial institutions is represented by the difference
between the FDIC limit and the total amounts on deposit. The Fund from time to time may have amounts on deposit in excess of
the insured limits.
The Fund participates with certain other
Federated Hermes Funds, on a several basis, in an up to $400,000,000 unsecured, 364-day, committed,
revolving line of credit (LOC) agreement dated June 16, 2026. The LOC was made available to temporarily finance the repurchase
or redemption of shares of the Fund, failed trades, payment of dividends, settlement of trades and for other short-term, temporary
or emergency general business purposes. The Fund cannot borrow under the LOC if an inter-fund loan is outstanding. The Fund’s
ability to borrow under the LOC also is subject to the limitations of the Act and various conditions precedent that must be satisfied
before the Fund can borrow. Loans under the LOC are charged interest at a fluctuating rate per annum equal to (a) the highest, on
any day, of (i) the federal funds effective rate, (ii) the published secured overnight financing rate plus an assigned percentage, and
(iii) 0.0%, plus (b) a margin. Any fund eligible to borrow under
the LOC pays its pro rata share of a commitment fee based on the amount of
the lenders’ commitment that has not been utilized, quarterly in arrears and at maturity. As of July 31, 2026, the Fund had no outstanding
loans. During the year ended July 31, 2026, the Fund did not utilize the LOC.
Pursuant to an Exemptive Order issued by
the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries
of Federated Hermes, Inc., may participate in an interfund lending program. This program provides an alternative credit facility
allowing the Fund to borrow from other participating affiliated funds. As of July 31, 2026, there were no outstanding loans. During
the year ended July 31, 2026, the program was not utilized.
An operating segment is defined as a component
of a public entity that engages in business activities from which it may recognize revenues
and incur expenses, has operating results that are regularly reviewed by the public entity’s chief operating decision maker (CODM)
to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information
available. A management committee of the Adviser acts as the CODM. The Fund represents a single operating segment, as the
CODM monitors the operating results of the Fund as a whole and the strategic asset allocation is determined based on the investment
objective of the Fund and executed by the Fund’s portfolio management team. The financial information in the form of the Fund’s
portfolio composition, total returns, expense ratios and changes in net assets (i.e., changes in net assets resulting from operations,
subscriptions and redemptions) which is reviewed by the CODM to assess the Fund’s performance in comparison to the Fund’s
benchmarks and to make resource allocation decisions for the Fund’s single segment is consistent with the information presented
in these financial statements. Segment assets are reflected on
the accompanying Statement of Assets and Liabilities as “total assets” and significant
segment expenses are listed on the accompanying Statement of Operations.
Under the Fund’s organizational documents,
its Officers and Directors/Trustees are indemnified against certain liabilities arising out of the
performance of their duties to the Fund (other than liabilities arising out of their willful misfeasance, bad faith, gross negligence
or reckless disregard of their duties to the Fund). In addition,
in the normal course of business, the Fund provides certain indemnifications under
arrangements with third parties. Typically, obligations to indemnify a third party arise in the context of an arrangement entered into
by the Fund under which the Fund agrees to indemnify such third party for certain liabilities arising out of actions taken pursuant to
the arrangement, provided the third party’s actions are
not deemed to have breached an agreed-upon standard of care (such as willful misfeasance,
bad faith, gross negligence or reckless disregard of their duties under the contract). The Fund’s maximum exposure under these
arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet arisen. The Fund
does not anticipate any material claims or losses pursuant to these arrangements at this time, and accordingly expects the risk of loss
to be remote.
Annual
Financial Statements and Additional Information
12. FEDERAL
TAX INFORMATION (UNAUDITED)
For the fiscal year ended July 31, 2026,
99.9% of total ordinary income distributions qualified as business interest income for purposes of 163(j)
of the Code and the regulations thereunder.
Annual
Financial Statements and Additional Information
Report of
Independent Registered Public Accounting Firm
TO THE SHAREHOLDERS AND THE
BOARD OF TRUSTEES OF FEDERATED HERMES CAPITAL RESERVES FUND:
Opinion on the Financial Statements
We have audited the accompanying
statement of assets and liabilities of Federated Hermes Capital Reserves Fund (the
“Fund”) (one of the portfolios constituting Federated Hermes Money Market Obligations Trust (the “Trust”)), including
the portfolio of investments, as of July 31, 2026, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of
the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In
our opinion, the financial statements present fairly,
in all material respects, the financial position of the Fund (one of the portfolios
constituting Federated Hermes Money Market Obligations Trust) at July 31, 2026, the results of its operations for
the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights
for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting
principles.
These financial statements are
the responsibility of the Trust’s management. Our responsibility is to express an opinion on the
Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance
with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.
We conducted our audits in accordance
with the standards of the PCAOB. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether
due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal
control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control
over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal
control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing
procedures to assess the risks of material misstatement of the financial statements, whether due
to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation
of securities owned as of July 31, 2026, by correspondence with the custodian, brokers, and others; when replies
were not received from brokers or others, we performed other auditing procedures. Our audits also included evaluating
the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation
of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor
of one or more Federated Hermes investment companies since 1979.
Boston, Massachusetts
September 23, 2026
Annual
Financial Statements and Additional Information
Evaluation
and Approval of Advisory Contract–May
2026
Federated Hermes Capital Reserves
Fund (the “Fund”)
At its meetings in May 2026 (the
“May Meetings”), the Fund’s Board of Trustees (the “Board”), including those Trustees who
are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940, as amended (the
“Independent Trustees”), reviewed and unanimously approved the continuation of the investment advisory contract between
the Fund and Federated Investment Management Company (the “Adviser”) (the “Contract”) for an additional one-year
term. The Board’s determination to approve the continuation of the Contract reflects the exercise of its business judgment
after considering such information deemed necessary to evaluate the terms of the Contract and to approve the continuation
of the existing arrangement. The information, factors and conclusions that formed the basis for the Board’s approval
are summarized below.
Information Received
and Review Process
At the request
of the Independent Trustees, the Fund’s Chief Compliance Officer (the “CCO”) furnished to the Board in advance
of its May Meetings an independent written report regarding data related to the Fund’s management fee (the
“CCO Management Fee Report”). The Board considered the CCO Management Fee Report, along with other information,
in evaluating the reasonableness of the Fund’s management fee and in determining to approve the continuation
of the Contract.
In addition
to the CCO Management Fee Report, the Board considered information specifically prepared in connection with
the approval of the continuation of the Contract that was presented at the May Meetings. In this regard, in the months preceding
the May Meetings, the Board requested and reviewed written responses and supporting materials prepared by the
Adviser and its affiliates (collectively, “Federated Hermes”) in response to requests posed to Federated Hermes by independent
legal counsel on behalf of the Independent Trustees encompassing a wide variety of topics, including those summarized
below. The Board also considered such additional matters as the Independent Trustees deemed reasonably necessary
to evaluate the Contract, which included detailed information about the Fund and Federated Hermes furnished to the
Board at its meetings throughout the year.
The Board’s
consideration of the Contract included review of materials and information covering the following matters, among
others: (1) a copy of the Contract; (2) the nature, quality and extent of the advisory and other services provided to the
Fund by Federated Hermes; (3) Federated Hermes’ business and operations; (4) the Adviser’s investment philosophy, personnel
and processes; (5) the Fund’s investment objective and strategies; (6) the Fund’s short-term and long-term performance
- in absolute terms (both on a gross basis and net of expenses) and relative to an appropriate group of peer funds
and its benchmark; (7) the Fund’s fees and expenses, including the advisory fee and the overall expense structure of the
Fund - in absolute terms and relative to an appropriate group of peer funds, with due regard for contractual or voluntary
expense limitations (if any); (8) the financial condition of Federated Hermes; (9) the Adviser’s profitability with respect
to managing the Fund; (10) distribution and sales activity for the Fund; and (11) the use and allocation of brokerage
commissions derived from trading the Fund’s portfolio securities (if any).
The Board
also considered judicial decisions concerning allegedly excessive investment advisory fees charged to other registered
funds in evaluating the Contract. Using these judicial decisions as a guide, the Board considered several factors it
deemed relevant to an adviser’s fiduciary duty with respect to its receipt of compensation from a fund, including: (1) the nature
and quality of the services provided by the adviser to the fund and its shareholders, including the performance of the
fund, its benchmark and comparable funds; (2) the adviser’s cost of providing the services and the profitability to the adviser
of providing advisory services to the fund; (3) the extent to which the adviser may realize “economies of scale” as the
fund grows larger and, if such economies of scale exist, whether they have been appropriately shared with the fund and its
shareholders or the family of funds; (4) any “fall-out” benefits that accrue to the adviser because of its relationship with
the fund, including research services received from
brokers that execute fund trades and any fees paid to affiliates of the adviser
for services rendered to the fund; (5) comparative fees and expenses, including a comparison of management fees paid
to the adviser with those paid by similar funds managed by the same adviser or other advisers as well as management fees
charged to institutional and other advisory clients of the same adviser for what might be viewed as like services; and (6)
the extent of care, conscientiousness and independence with which the fund’s board members perform their duties and their
expertise, including whether they are fully informed about all facts the board deems relevant to its consideration of the
adviser’s services and fees. The Board considered that the Securities and Exchange Commission (“SEC”) disclosure requirements
regarding the basis for a fund board’s approval of the fund’s investment advisory contract generally align with
the factors listed above. The Board was guided by these factors in its evaluation of the Contract to the extent it considered
them to be appropriate and relevant, as discussed further below. The Board considered and weighed these factors
in light of its substantial accumulated experience in governing the Fund and working with Federated Hermes on matters
relating to the oversight of the other funds advised by Federated Hermes (each, a “Federated Hermes Fund” and, collectively,
the “Federated Hermes Funds”).
Annual
Financial Statements and Additional Information
In
addition, the Board considered the preferences and expectations of Fund shareholders and the potential disruptions of the
Fund’s operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate
or not renew the Contract. In particular, the Board recognized that many shareholders likely have invested in the Fund
based on the strength of Federated Hermes’ industry standing and reputation and with the expectation that Federated Hermes
will have a continuing role in providing advisory services to the Fund. Thus, the Board observed that there are a range
of investment options available to the Fund’s shareholders in the marketplace, and such shareholders, having had the opportunity
to consider other investment options, have effectively selected Federated Hermes by virtue of investing in the
Fund.
In determining
to approve the continuation of the Contract, the members of the Board reviewed and evaluated information
and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment.
While individual members of the Board may have weighed certain factors differently, the Board’s determination
to approve the continuation of the Contract was based on a comprehensive consideration of all information provided
to the Board throughout the year. The Board recognized that its evaluation process is evolutionary and that the factors
considered and the emphasis placed on relevant factors may change in recognition of changing circumstances in the
registered fund marketplace. The Independent Trustees were assisted throughout the evaluation process by independent legal
counsel. In connection with their deliberations at the May Meetings, the Independent Trustees met separately in executive
session with their independent legal counsel and without management present to review the relevant materials and
consider their responsibilities under applicable laws. In addition, senior management representatives of Federated Hermes
also met with the Independent Trustees and their independent legal counsel to discuss the materials and presentations
furnished to the Board at the May Meetings. The Board considered the approval of the Contract for the Fund as
part of its consideration of agreements for funds across the family of Federated Hermes Funds, but its approvals were made
on a fund-by-fund basis.
Nature, Extent and
Quality of Services
The Board
considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources
of Federated Hermes dedicated to the Fund. In this regard, the Board evaluated, among other things, the terms of the
Contract and the full range of services provided to the Fund by Federated Hermes. The Board considered the Adviser’s personnel,
investment philosophy and process, investment research capabilities and resources, trade operations capabilities,
experience and performance track record. The Board reviewed the qualifications, backgrounds and responsibilities
of the portfolio management team primarily responsible for the day-to-day management of the Fund and evaluated
Federated Hermes’ ability and experience in attracting and retaining qualified personnel to service the Fund. The Board
considered the trading operations by the Adviser, including the execution of portfolio transactions and the selection of
brokers for those transactions. In addition, the Board noted that the Fund is a money market mutual fund that operates in accordance
with the limitations set forth in Rule 2a-7 under the Investment Company Act of 1940, as amended. In this connection,
the Board considered the expertise of the Adviser in managing money market funds, its extensive experience with
the requirements of Rule 2a-7 and its commitment to managing the Fund in accordance with these requirements. The Board
also considered the Adviser’s ability to deliver competitive investment performance for the Fund when compared to the
Fund’s Performance Peer Group (as defined below), which was deemed by the Board to be a useful indicator of how the
Adviser is executing the Fund’s investment program.
In addition,
the Board considered the financial resources and overall reputation of Federated Hermes and its willingness to
consider and make investments in personnel, infrastructure, technology, cybersecurity, business continuity planning and operational
enhancements that are designed to benefit the Federated Hermes Funds. The Board considered the quality of Federated
Hermes’ communications with the Board and responsiveness to Board inquiries and requests made from time to time
with respect to the Federated Hermes Funds. The Board also considered that Federated Hermes is responsible for providing
the Federated Hermes Funds’ officers.
The Board
received and evaluated information regarding Federated Hermes’ regulatory and compliance environment. The
Board considered Federated Hermes’ compliance program and compliance history and reports from the CCO about Federated
Hermes’ compliance with applicable laws and regulations, including responses to regulatory developments and any
compliance or other issues raised by regulatory agencies. The Board also noted Federated Hermes’ support of the Federated
Hermes Funds’ compliance control structure and the compliance-related resources devoted by Federated Hermes
in support of the Fund’s obligations pursuant to Rule 38a-1 under the Investment Company Act of 1940, as amended,
including Federated Hermes’ commitment to respond to rulemaking and other regulatory initiatives of the SEC. The
Board considered Federated Hermes’ approach to internal audits and risk management with respect to the Federated Hermes
Funds and its day-to-day oversight of the Federated Hermes Funds’ compliance with their investment objectives and
policies as well as with applicable laws and regulations, noting that regulatory and other developments had over time
Annual
Financial Statements and Additional Information
led, and
continue to lead, to an increase in the scope of Federated Hermes’ oversight in this regard. In addition, the Board noted
Federated Hermes’ commitment to maintaining high quality systems and expending substantial resources to prepare for
and respond to ongoing changes due to the market, regulatory and control environments in which the Fund and its service
providers operate.
The Board
considered Federated Hermes’ efforts to provide shareholders in the Federated Hermes Funds with a comprehensive
array of funds with different investment objectives, policies and strategies. The Board considered the expenses
that Federated Hermes had incurred, as well as the entrepreneurial and other risks assumed by Federated Hermes, in
sponsoring and providing on-going services to new funds to expand these opportunities for shareholders. The Board noted
the benefits to shareholders of being part of the family of Federated Hermes Funds, which include the general right to
exchange investments between the same class of shares without the incurrence of additional sales charges.
Based on
these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services
provided by the Adviser to the Fund.
Fund Investment Performance
The Board
considered the investment performance of the Fund. In evaluating the Fund’s investment performance, the Board
considered performance results in light of the Fund’s investment objective, strategies and risks. The Board considered
detailed investment reports on, and the Adviser’s analysis of, the Fund’s performance over different time periods
that were provided to the Board throughout the year and in connection with the May Meetings. These reports included,
among other items, information on the Fund’s gross and net returns, the Fund’s investment performance compared
to one or more relevant categories or groups of peer funds and the Fund’s benchmark, performance attribution information
and commentary on the effect of market conditions. The Board noted that it evaluated investment performance at
meetings throughout the year and received reports from Federated Hermes regarding the performance of certain Federated
Hermes Funds as well as Federated Hermes’ explanations for less favorable performance and any specific actions
Federated Hermes had taken, or had determined to take, to seek to enhance Fund investment performance and the results
of those actions.
The Board
also reviewed comparative information regarding the performance of other registered funds in the category of
peer funds selected by iMoneyNet, an independent fund ranking organization (the “Performance Peer Group”). The Board
noted the CCO’s statement that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating
the performance of the Adviser in managing the Fund.
The Board
also considered comparative performance data from Lipper, Inc. that was included in reports provided to the Board
throughout the year.
The Board
considered that the Fund’s performance fell below the median of the Performance Peer Group for the one-year
period ended December 31, 2025. The Board discussed the Fund’s performance with the Adviser, including the reasons
for and any plans to seek to improve the Fund’s performance, and recognized the efforts being taken by the Adviser
in the context of other factors considered relevant by the Board. The Board also considered the relatively tight dispersion
of performance data with respect to the Fund and its Peer Group.
Based on
these considerations, the Board concluded that it had continued confidence in the Adviser’s overall capabilities
to manage the Fund.
The Board
considered the advisory fee and overall expense structure of the Fund and the comparative fee and expense information
that had been provided in connection with the May Meetings. In this regard, the Board was presented with, and
considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each
element of the Fund’s total expense ratio (i.e., gross and net advisory fees, administrative fees, custody fees, portfolio accounting
fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated Hermes from
the overall category of peer funds selected by iMoneyNet (the “Expense Peer Group”). The Board received a description
of the methodology used to select the Expense Peer Group from the overall iMoneyNet category. The Board also
reviewed comparative information regarding the fees and expenses of the broader group of funds in the overall iMoneyNet
category.
While mindful
that courts have cautioned against giving too much weight to comparative information concerning fees charged
to funds by other advisers, the Board found that the use of comparisons between the Fund and its Expense Peer Group
assisted the Board in its evaluation of the Fund’s fees and expenses. The Board focused on comparisons with other registered
funds more heavily than non-registered fund products or services because such comparisons are believed to be more
relevant. The Board considered that other registered funds are the products most like the Fund, in that they are
Annual
Financial Statements and Additional Information
readily available
to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle, in fact,
chosen and maintained by the Fund’s shareholders. The Board noted that the range of such other registered funds’ fees
and expenses, therefore, appears to be a relevant indicator of what investors have found to be reasonable in the marketplace
in which the Fund competes.
The Board
reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position
of the Fund’s fee rates relative to its Expense Peer Group. In this regard, the Board noted that the contractual advisory
fee rate was below the median of the Expense Peer Group, and the Board was satisfied that the overall expense structure
of the Fund remained competitive.
The Board
also received and considered information about the nature and extent of services offered and fees charged by Federated
Hermes to other types of clients with investment strategies similar to those of the Federated Hermes Funds, including
non-registered fund clients (such as institutional separate accounts) and third-party unaffiliated registered funds for
which the Adviser or its affiliates serve as sub-adviser. The Board noted the CCO’s statement that non-registered fund clients
are inherently different products due to the following differences, among others: (i) types of targeted investors; (ii)
applicable laws and regulations; (iii) legal structures; (iv) average account sizes; (v) portfolio management techniques made
necessary by different cash flows and different associated costs; (vi) the time spent by portfolio managers and their teams
(among other personnel across various departments, including legal, compliance and risk management) in reviewing securities
pricing; (vii) SEC mandated risk management programs with respect to fund liquidity and use of derivatives; (viii)
questions on regulatory reporting; (ix) a variety of different administrative responsibilities; and (x) degrees of risk associated
with management. The Board also considered information regarding the differences in the nature of the services required
for Federated Hermes to manage its proprietary registered fund business versus managing a discrete pool of assets as
a sub-adviser to another institution’s registered fund, noting the CCO’s statement that Federated Hermes generally performs
significant additional services and assumes substantially greater risks in managing the Fund and other Federated Hermes
Funds than in its role as sub-adviser to an unaffiliated third-party registered fund. The Board noted that the CCO emphasized
that differences in fees for providing advisory services to other types of clients may not be appropriate when judging
the appropriateness of the Federated Hermes Funds’ advisory fees because of the different services provided.
In the case
of the Fund, the Board noted that Federated Hermes does not manage any other types of clients that are comparable
to the Fund.
Based on
these considerations, the Board concluded that the fees and total operating expenses of the Fund, in conjunction
with other matters considered, are reasonable in light of the services provided.
The Board
received and considered profitability information furnished by Federated Hermes. Such profitability information
included revenues reported on a fund-by-fund basis and estimates of the allocation of expenses made on a fund-by-fund
basis, using allocation methodologies specified by the CCO and described to the Board. The Board considered
the CCO’s statement that, while the cost allocation report applies consistent allocation processes for purposes of
general comparison of funds, the inherent difficulties in arbitrarily allocating costs lack precision and may cause the report
to be unreliable because a single change in an allocation estimate can dramatically alter the resulting estimate of cost
and/or profitability of a Federated Hermes Fund and may produce unintended consequences. In addition, the Board considered
the CCO’s statement that the allocation methodologies used by Federated Hermes in estimating profitability for purposes
of reporting to the Board in connection with the continuation of the Contract are consistent with the methodologies
previously reviewed by an independent consultant. The Board noted that the independent consultant had previously
conducted a review of the allocation methodologies and reported to the Board that, although there is no single best
method to allocate expenses, the methodologies used by Federated Hermes are reasonable. The Board considered the CCO’s
statement that the estimated profitability to the Adviser from its relationship with the Fund was not unreasonable in relation
to the services provided.
The Board
also reviewed information compiled by Federated Hermes comparing its profitability information to other publicly-held
fund management companies, including information regarding profitability trends over time. The Board recognized
that profitability comparisons among fund management companies are difficult because of the variation in the type
of comparative information that is publicly available, and the profitability of any fund management company is affected
by numerous factors. The Board considered the CCO’s statement that, based on such profitability information, Federated
Hermes’ profit margins did not appear to be excessive and that Federated Hermes appeared financially sound, with
the resources available to fulfill its contractual obligations.
Annual
Financial Statements and Additional Information
Economies
of Scale
The Board
received and considered information about the notion of possible realization of “economies of scale” as a fund
grows larger, the difficulties of isolating and quantifying economies of scale at an individual fund level, and the extent
to which potential scale benefits are shared with shareholders. In this regard, the Board considered that Federated Hermes
has made significant and long-term investments in areas that support all of the Federated Hermes Funds, such as: portfolio
management, investment research and trading operations; shareholder services; compliance; business continuity, cybersecurity
and information security programs; internal audit and risk management functions; and technology, systems capabilities
and use of data. The Board noted that Federated Hermes’ investments in these areas are extensive and are designed
to provide enhanced or expanded services to the Federated Hermes Funds and their shareholders. The Board considered
that the benefits of these investments are likely to be shared with the family of Federated Hermes Funds as a whole.
In addition, the Board considered that fee waivers and expense reimbursements are another means for potential economies
of scale to be shared with shareholders and can provide protection from an increase in expenses if a Federated Hermes
Fund’s assets decline. The Board considered that, in order for the Federated Hermes Funds to remain competitive in
the marketplace, Federated Hermes has frequently waived fees and/or reimbursed expenses for the Federated Hermes Funds
and has disclosed to shareholders and/or reported to the Board its intention to do so (or continue to do so) in the future.
The Board also considered that Federated Hermes has been active in managing expenses of the Federated Hermes Funds
in recent years, which has resulted in benefits being realized by shareholders.
The Board
also received and considered information on adviser-paid fees (commonly referred to as “revenue sharing” payments)
that was provided to the Board throughout the year and in connection with the May Meetings. The Board considered
that Federated Hermes believes that this information is relevant to consider whether Federated Hermes had an incentive
to either not apply breakpoints, or to apply breakpoints at higher levels, but should not be considered when evaluating
the reasonableness of advisory fees. The Board also noted the absence of any applicable regulatory or industry guidelines
on economies of scale, which is compounded by the lack of any uniform methodology or pattern with respect to structuring
fund advisory fees with breakpoints that serve to reduce the fees as a fund attains a certain size.
The Board
considered information regarding the compensation and other ancillary (or “fall-out”) benefits that Federated Hermes
derived from its relationships with the Federated Hermes Funds. The Board considered that Federated Hermes may
derive a benefit to its reputation as an adviser to the Fund, which may help in attracting other clients and investment personnel.
The Board noted that, in addition to receiving advisory fees under the Federated Hermes Funds’ investment advisory
contracts, Federated Hermes’ affiliates also receive fees for providing other services to the Federated Hermes Funds
under separate service contracts, including for serving as the Federated Hermes Funds’ administrator and distributor.
In this regard, the Board considered that Federated Hermes’ affiliates provide distribution and shareholder services
to the Federated Hermes Funds, for which they may be compensated through distribution and servicing fees paid pursuant
to Rule 12b-1 plans or otherwise. The Board also received and considered information detailing the benefits, if any,
that Federated Hermes may derive from its receipt of research services from brokers who execute portfolio trades for the
Federated Hermes Funds.
The Board
considered the CCO’s presentation and statements and the information accompanying the CCO Management Fee
Report. The Board recognized that its evaluation of the Federated Hermes Funds’ advisory and sub-advisory arrangements
is a continuing and ongoing process that is informed by the information that the Board requests and receives from
management throughout the course of the year.
On the basis
of the information and factors summarized above, among other information and factors deemed relevant by the
Board, and the evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the continuation
of the Contract. The Board based its determination to approve the Contract on the totality of the circumstances
and relevant factors and with a view of past and future long-term considerations. Not all of the factors and considerations
identified above were necessarily deemed to be relevant to the Fund, nor did the Board consider any one of them
to be determinative.
Annual
Financial Statements and Additional Information
You could lose money
by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend
your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other
factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you
should not expect that the sponsor will provide financial support to the Fund at any time.
This information is authorized
for distribution to prospective investors only when preceded or accompanied by the Fund’s Prospectus,
which contains facts concerning its objective and policies, management fees, expenses and other information.
Federated Hermes Capital Reserves Fund
Federated Hermes Funds
4000
Ericsson Drive
Warrendale, PA 15086-7561
Contact us at
FederatedHermes.com/us
or
call 1-800-341-7400.
Federated Securities Corp., Distributor
©
2026 Federated Hermes, Inc.
Annual Financial Statements
and Additional Information
Federated
Hermes Government Reserves Fund
A
Portfolio of Federated Hermes Money Market Obligations Trust
Not FDIC Insured ▪ May
Lose Value ▪ No Bank Guarantee
Portfolio
of Investments
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REPURCHASE
AGREEMENTS—50.6% |
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Interest
in $500,000,000 joint repurchase agreement, 3.660% dated 7/31/2026 under which ABN AMRO Bank N.V. will
repurchase
the securities provided as collateral for $500,152,500 on 8/3/2026. The securities provided as collateral at
the
end of the period held with BNY Mellon, tri-party agent, were U.S. Government Agency and U.S. Treasury
Securities
with various maturities to 5/1/2056 and the market value of those underlying securities was $510,480,758. |
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Repurchase
agreement, 3.660% dated 7/31/2026 under which ABN AMRO Bank N.V. will repurchase the securities
provided
as collateral for $50,015,250 on 8/3/2026. The securities provided as collateral at the end of the period held
with
BNY Mellon, tri-party agent, were U.S. Government Agency and U.S. Treasury Securities with various maturities to
6/1/2055
and the market value of those underlying securities was $51,075,123. |
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Interest
in $150,000,000 joint repurchase agreement, 3.640% dated 7/31/2026 under which Bank of America Securities,
Inc.
will repurchase the securities provided as collateral for $150,045,500 on 8/3/2026. The securities provided as
collateral
at the end of the period held with BNY Mellon, tri-party agent, were U.S. Treasury Securities with various
maturities
to 11/15/2042 and the market value of those underlying securities was $153,046,463. |
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Interest
in $1,150,000,000 joint repurchase agreement, 3.650% dated 7/31/2026 under which Bank of America
Securities,
Inc. will repurchase the securities provided as collateral for $1,150,349,792 on 8/3/2026. The securities
provided
as collateral at the end of the period held with BNY Mellon, tri-party agent, were U.S. Government Agency
Securities
with various maturities to 7/20/2066 and the market value of those underlying securities was $1,173,356,789.
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Repurchase
agreement, 3.680% dated 7/6/2026 under which Bank of Montreal will repurchase the securities provided
as
collateral for $100,316,889 on 8/6/2026. The securities provided as collateral at the end of the period held with BNY
Mellon,
tri-party agent, were U.S. Government Agency Securities with various maturities to 6/20/2056 and the market
value
of those underlying securities was $102,323,227. |
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Repurchase
agreement, 3.670% dated 7/10/2026 under which Bank of Montreal will repurchase the securities provided
as
collateral for $50,158,014 on 8/10/2026. The securities provided as collateral at the end of the period held with BNY
Mellon,
tri-party agent, were U.S. Government Agency Securities with various maturities to 12/20/2055 and the market
value
of those underlying securities was $51,161,175. |
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Interest
in $10,000,000 joint repurchase agreement, 3.640% dated 7/31/2026 under which Bank of Montreal will
repurchase
the securities provided as collateral for $10,003,033 on 8/3/2026. The securities provided as collateral at
the
end of the period held with BNY Mellon, tri-party agent, were U.S. Treasury Securities with various maturities to
8/15/2048
and the market value of those underlying securities was $10,203,122. |
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Repurchase
agreement, 3.650% dated 7/31/2026 under which Barclays Capital, Inc. will repurchase the securities
provided
as collateral for $50,015,208 on 8/3/2026. The securities provided as collateral at the end of the period held
with
BNY Mellon, tri-party agent, were U.S. Government Agency Securities with various maturities to 7/21/2042 and the
market
value of those underlying securities was $51,015,578. |
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Interest
in $125,000,000 joint repurchase agreement, 3.640% dated 7/31/2026 under which BNP Paribas S.A. will
repurchase
the securities provided as collateral for $125,037,917 on 8/3/2026. The securities provided as collateral at
the
end of the period held with BNY Mellon, tri-party agent, were U.S. Treasury Securities with various maturities to
4/15/2029
and the market value of those underlying securities was $127,538,716. |
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Interest
in $1,600,000,000 joint repurchase agreement, 3.65% dated 7/31/2026 under which BNP Paribas S.A. will
repurchase
the securities provided as collateral for $1,600,486,667 on 8/3/2026. The securities provided as collateral at
the
end of the period held with BNY Mellon, tri-party agent, were U.S. Government Agency securities and U.S. Treasury
securities
with various maturities to 8/25/2056 and the market value of those underlying securities was $1,636,958,362.
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Repurchase
agreement, 3.710% dated 3/26/2026 under which BNP Paribas S.A. will repurchase the securities provided
as
collateral for $25,474,042 on 9/28/2026. The securities provided as collateral at the end of the period held with BNY
Mellon,
tri-party agent, were U.S. Treasury Securities with various maturities to 11/15/2044 and the market value of
those
underlying securities was $25,839,074. |
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Interest
in $10,000,000 joint repurchase agreement, 3.640% dated 7/31/2026 under which Citigroup Global Markets,
Inc.
will repurchase the securities provided as collateral for $10,003,033 on 8/3/2026. The securities provided as
collateral
at the end of the period held with BNY Mellon, tri-party agent, were U.S. Treasury Securities with various
maturities
to 2/15/2051 and the market value of those underlying securities was $10,203,094. |
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Interest
in $1,000,000,000 joint repurchase agreement, 3.650% dated 7/31/2026 under which Citigroup Global Markets,
Inc.
will repurchase the securities provided as collateral for $1,000,304,167 on 8/3/2026. The securities provided as
collateral
at the end of the period held with BNY Mellon, tri-party agent, were U.S. Government Agency Securities with
various
maturities to 8/15/2068 and the market value of those underlying securities was $1,020,310,251. |
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Repurchase
agreement, 3.650% dated 7/31/2026 under which Fixed Income Clearing Corp. - BNY will repurchase the
securities
provided as collateral for $1,000,304,167 on 8/3/2026. The securities provided as collateral at the end of the
period
held with BNY Mellon, tri-party agent, were U.S. Government Agency Securities with various maturities to
8/1/2056
and the market value of those underlying securities was $1,030,000,000. |
|
|
|
|
Repurchase
agreement, 3.640% dated 7/31/2026 under which HSBC Securities (USA), Inc. will repurchase the securities
provided
as collateral for $5,001,517 on 8/3/2026. The securities provided as collateral at the end of the period held
with
BNY Mellon, tri-party agent, were U.S. Treasury Securities with various maturities to 11/15/2047 and the market
value
of those underlying securities was $5,100,005. |
|
Annual
Financial Statements and Additional Information
|
|
|
|
|
|
|
|
REPURCHASE
AGREEMENTS—continued
|
|
|
|
|
Repurchase
agreement, 3.640% dated 7/31/2026 under which HSBC Securities (USA), Inc. will repurchase the securities
provided
as collateral for $100,030,333 on 8/3/2026. The securities provided as collateral at the end of the period held
with
BNY Mellon, tri-party agent, were U.S. Treasury Securities with various maturities to 2/15/2053 and the market
value
of those underlying securities was $102,000,019. |
|
|
|
|
Interest
in $100,000,000 joint repurchase agreement, 3.640% dated 7/31/2026 under which Natixis Financial Products
LLC
will repurchase the securities provided as collateral for $100,030,333 on 8/3/2026. The securities provided as
collateral
at the end of the period held with BNY Mellon, tri-party agent, were U.S. Treasury Securities with various
maturities
to 2/15/2043 and the market value of those underlying securities was $102,030,943. |
|
|
|
|
TOTAL
REPURCHASE AGREEMENTS |
|
|
|
|
GOVERNMENT
AGENCIES—25.3% |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.695% (SOFR +0.045%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.710% (SOFR +0.060%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.730% (SOFR +0.080%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.735% (SOFR +0.085%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.740% (SOFR +0.090%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.745% (SOFR +0.095%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.750% (SOFR +0.100%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.755% (SOFR +0.105%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.760% (SOFR +0.110%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.765% (SOFR +0.115%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.775% (SOFR +0.125%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.780% - 3.790% (SOFR +0.140%), 8/3/2026 - 8/4/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.780% (SOFR +0.130%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.785% (SOFR +0.135%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.800% (SOFR +0.150%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Discount Notes, 3.509% - 3.630%, 8/7/2026 - 12/11/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.685% (SOFR +0.035%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.690% (SOFR +0.040%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.695% (SOFR +0.045%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.700% (SOFR +0.050%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.705% (SOFR +0.055%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.710% (SOFR +0.060%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.725% (SOFR +0.075%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.730% (SOFR +0.080%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.770% (SOFR +0.120%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.775% (SOFR +0.125%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.795% (SOFR +0.145%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.830% (SOFR +0.180%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System, 3.500% - 4.255%, 10/23/2026 - 8/20/2027 |
|
|
|
|
Federal
Home Loan Mortgage Corp. Floating Rate Notes, 3.745% (SOFR +0.095%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Mortgage Corp. Floating Rate Notes, 3.750% (SOFR +0.100%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Mortgage Corp. Floating Rate Notes, 3.780% (SOFR +0.130%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Mortgage Corp. Floating Rate Notes, 3.790% (SOFR +0.140%), 8/3/2026 |
|
|
|
|
Federal
National Mortgage Association Floating Rate Notes, 3.730% (SOFR +0.080%), 8/3/2026 |
|
|
|
|
Federal
National Mortgage Association Floating Rate Notes, 3.735% (SOFR +0.085%), 8/3/2026 |
|
|
|
|
Federal
National Mortgage Association Floating Rate Notes, 3.740% (SOFR +0.090%), 8/3/2026 |
|
|
|
|
Federal
National Mortgage Association Floating Rate Notes, 3.790% (SOFR +0.140%), 8/3/2026 |
|
|
|
|
Federal
National Mortgage Association Floating Rate Notes, 3.910% (SOFR +0.260%), 8/3/2026 |
|
|
|
|
TOTAL
GOVERNMENT AGENCIES |
|
|
|
|
|
|
|
|
|
United
States Treasury Bill, 3.390%, 1/21/2027 |
|
|
|
|
United
States Treasury Bill, 3.540%, 10/1/2026 |
|
|
|
|
United
States Treasury Bill, 3.590%, 9/22/2026 |
|
Annual
Financial Statements and Additional Information
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States Treasury Bill, 3.630%, 9/29/2026 |
|
|
|
|
United
States Treasury Bill, 3.635%, 10/6/2026 |
|
|
|
|
United
States Treasury Bill, 3.650%, 5/13/2027 |
|
|
|
|
United
States Treasury Bill, 3.650%, 9/15/2026 |
|
|
|
|
United
States Treasury Bill, 3.656%, 3/18/2027 |
|
|
|
|
United
States Treasury Bill, 3.665%, 10/13/2026 |
|
|
|
|
United
States Treasury Bill, 3.665%, 12/3/2026 |
|
|
|
|
United
States Treasury Bill, 3.730%, 10/22/2026 |
|
|
|
|
United
States Treasury Bill, 3.750%, 6/10/2027 |
|
|
|
|
United
States Treasury Bill, 3.790%, 11/10/2026 |
|
|
|
|
United
States Treasury Bill, 3.840%, 12/24/2026 |
|
|
|
|
United
States Treasury Bills, 3.460% - 3.470%, 11/27/2026 |
|
|
|
|
United
States Treasury Bills, 3.600% - 3.635%, 8/20/2026 |
|
|
|
|
United
States Treasury Bills, 3.605% - 3.615%, 8/4/2026 |
|
|
|
|
United
States Treasury Bills, 3.640% - 3.670%, 9/10/2026 |
|
|
|
|
United
States Treasury Floating Rate Notes, 3.902% (91-day T-Bill +0.050%), 8/4/2026 |
|
|
|
|
United
States Treasury Floating Rate Notes, 3.950% (91-day T-Bill +0.098%), 8/4/2026 |
|
|
|
|
United
States Treasury Floating Rate Notes, 4.012% (91-day T-Bill +0.160%), 8/4/2026 |
|
|
|
|
United
States Treasury Floating Rate Notes, 4.057% (91-day T-Bill +0.205%), 8/4/2026 |
|
|
|
|
United
States Treasury Note, 1.125%, 10/31/2026 |
|
|
|
|
United
States Treasury Note, 1.250%, 12/31/2026 |
|
|
|
|
United
States Treasury Note, 2.375%, 5/15/2027 |
|
|
|
|
United
States Treasury Note, 3.500%, 9/30/2026 |
|
|
|
|
United
States Treasury Note, 3.750%, 6/30/2027 |
|
|
|
|
United
States Treasury Note, 3.750%, 8/31/2026 |
|
|
|
|
United
States Treasury Note, 3.875%, 3/31/2027 |
|
|
|
|
United
States Treasury Note, 4.250%, 11/30/2026 |
|
|
|
|
United
States Treasury Note, 4.375%, 7/15/2027 |
|
|
|
|
United
States Treasury Note, 4.625%, 9/15/2026 |
|
|
|
|
United
States Treasury Notes, 1.500% - 4.125%, 1/31/2027 |
|
|
|
|
United
States Treasury Notes, 2.625% - 3.875%, 5/31/2027 |
|
|
|
|
|
|
|
|
|
TOTAL
INVESTMENT IN SECURITIES—100.0%
(AT
AMORTIZED COST)3
|
|
|
|
|
OTHER
ASSETS AND LIABILITIES - NET—(0.0%)4
|
|
|
|
|
|
|
|
|
Floating/variable
note with current rate and current maturity or next reset date shown. |
|
|
Discount
rate at time of purchase. |
|
|
Also
represents cost of investments for federal tax purposes. |
|
|
Assets,
other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Note: The categories of investments are
shown as a percentage of net assets at July 31, 2026.
Various inputs are used in determining the
value of the Fund’s investments. These inputs are summarized in the three broad levels listed
below:
Level 1—quoted prices in active markets
for identical securities.
Level 2—other significant observable
inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk,
etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs
(including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing
securities are not an indication of the risk associated with investing in those securities.
Annual
Financial Statements and Additional Information
In valuing the Fund’s
assets as of July 31, 2026, all investments of the Fund are valued using amortized cost, which is a methodology utilizing
Level 2 inputs.
The
following acronym(s) are used throughout this portfolio: |
|
|
|
—Secured
Overnight Financing Rate |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Financial
Highlights–Class
A Shares
(For a Share Outstanding Throughout Each
Period)
|
|
|
|
|
|
|
|
|
|
Net Asset
Value, Beginning of Period |
|
|
|
|
|
Income
From Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
FROM INVESTMENT OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
from net investment income |
|
|
|
|
|
Distributions
from net realized gain |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Asset Value, End of Period |
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
waiver/reimbursement6
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
|
|
|
|
|
|
|
Per
share numbers have been calculated using the average shares method. |
|
|
Represents
less than $0.001. |
|
|
Based
on net asset value. |
|
|
Amount
does not reflect net expenses incurred by investment companies in which the Fund may invest. |
|
|
The
net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.87%, 0.87%, 0.87% and
0.87% for the
years
ended July 31, 2026, 2025, 2024 and 2023, respectively, after taking into account these expense reductions. |
|
|
This
expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense
waiver/
reimbursement
recorded by investment companies in which the Fund may invest. |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Financial
Highlights–Class
C Shares
(For a Share Outstanding Throughout Each
Period)
|
|
|
|
|
|
|
|
|
|
Net Asset
Value, Beginning of Period |
|
|
|
|
|
Income
From Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
FROM INVESTMENT OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
from net investment income |
|
|
|
|
|
Distributions
from net realized gain |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Asset Value, End of Period |
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
waiver/reimbursement6
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
|
|
|
|
|
|
|
Per
share numbers have been calculated using the average shares method. |
|
|
Represents
less than $0.001. |
|
|
Based
on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.
|
|
|
Amount
does not reflect net expenses incurred by investment companies in which the Fund may invest. |
|
|
The
net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 1.26%, 1.26%, 1.25% and
1.25% for the
years
ended July 31, 2026, 2025, 2024 and 2023, respectively, after taking into account these expense reductions. |
|
|
This
expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense
waiver/
reimbursement
recorded by investment companies in which the Fund may invest. |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Financial
Highlights–Class
F Shares
(For a Share Outstanding Throughout Each
Period)
|
|
|
|
|
|
|
|
|
|
Net Asset
Value, Beginning of Period |
|
|
|
|
|
Income
From Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
FROM INVESTMENT OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
from net investment income |
|
|
|
|
|
Distributions
from net realized gain |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Asset Value, End of Period |
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
waiver/reimbursement6
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
|
|
|
|
|
|
|
Per
share numbers have been calculated using the average shares method. |
|
|
Represents
less than $0.001. |
|
|
Based
on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.
|
|
|
Amount
does not reflect net expenses incurred by investment companies in which the Fund may invest. |
|
|
The
net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.87%, 0.87%, 0.87% and
0.87% for the
years
ended July 31, 2026, 2025, 2024 and 2023, respectively, after taking into account these expense reductions. |
|
|
This
expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense
waiver/
reimbursement
recorded by investment companies in which the Fund may invest. |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Financial
Highlights–Class
P Shares
(For a Share Outstanding Throughout Each
Period)
|
|
|
|
|
|
|
|
|
|
Net Asset
Value, Beginning of Period |
|
|
|
|
|
Income
From Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
FROM INVESTMENT OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
from net investment income |
|
|
|
|
|
Distributions
from net realized gain |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Asset Value, End of Period |
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
waiver/reimbursement6
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
|
|
|
|
|
|
|
Per
share numbers have been calculated using the average shares method. |
|
|
Represents
less than $0.001. |
|
|
Based
on net asset value. |
|
|
Amount
does not reflect net expenses incurred by investment companies in which the Fund may invest. |
|
|
The
net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 1.02%, 1.02%, 1.02% and
1.02% for the
years
ended July 31, 2026, 2025, 2024 and 2023, respectively, after taking into account these expense reductions. |
|
|
This
expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense
waiver/
reimbursement
recorded by investment companies in which the Fund may invest. |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Statement
of Assets and Liabilities
July 31, 2026
|
|
|
|
|
|
Investment
in repurchase agreements |
|
Investment
in securities, at amortized cost and fair value |
|
|
|
|
|
|
|
Receivable
for shares sold |
|
|
|
|
|
|
|
Payable
for investments purchased |
|
Payable
for distribution services fee (Note 5)
|
|
Payable
for other service fees (Notes 2 and 5)
|
|
Payable
for transfer agent fees (Note 2)
|
|
Payable
for shares redeemed |
|
Payable
for investment adviser fee (Note 5)
|
|
Payable
for administrative fee (Note 5)
|
|
Income
distribution payable |
|
Payable
for Directors’/Trustees’ fees (Note 5)
|
|
Accrued
expenses (Note 5) |
|
|
|
|
Net
assets for 5,172,709,955 shares outstanding |
|
|
|
|
|
|
|
Total
distributable earnings (loss) |
|
|
|
|
Net Asset
Value, Offering Price and Redemption Proceeds Per Share: |
|
|
|
|
Net
asset value per share ($290,637,617 ÷ 290,635,970 shares outstanding), no par value, unlimited shares authorized
|
|
|
|
|
Redemption
proceeds per share |
|
|
|
|
Net
asset value per share ($2,522,378 ÷ 2,522,276 shares outstanding), no par value, unlimited shares authorized
|
|
|
|
|
Redemption
proceeds per share (99.00/100 of $1.00)1
|
|
|
|
|
Net
asset value per share ($821,521 ÷ 821,517 shares outstanding), no par value, unlimited shares authorized |
|
|
|
|
Redemption
proceeds per share (99.00/100 of $1.00)1
|
|
|
|
|
Net
asset value per share ($4,878,762,162 ÷ 4,878,730,192 shares outstanding), no par value, unlimited shares authorized
|
|
|
|
|
Redemption
proceeds per share |
|
|
|
Under
certain limited conditions, a “Contingent Deferred Sales Charge” of up to 1.00% for Class C Shares and Class F Shares may
be imposed. See “Sales
Charge
When You Redeem” in the Prospectus. |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Statement
of Operations
Year Ended July 31,
2026
|
|
|
|
|
|
|
|
|
Investment
adviser fee (Note 5)
|
|
Administrative
fee (Note 5)
|
|
|
|
|
Transfer
agent fees (Note 2) |
|
Directors’/Trustees’
fees (Note 5)
|
|
|
|
|
|
|
|
Distribution
services fee (Note 5)
|
|
Other
service fees (Notes 2 and 5) |
|
Portfolio
accounting fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
Waivers,
Reimbursement and Reduction: |
|
Waiver
of investment adviser fee (Note 5)
|
|
Waiver/reimbursement
of other operating expenses (Notes 2 and 5) |
|
Reduction
of custodian fees (Note 6)
|
|
TOTAL
WAIVERS, REIMBURSEMENT AND REDUCTION |
|
|
|
|
|
|
|
Net
realized gain on investments |
|
Change
in net assets resulting from operations |
|
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Statement
of Changes in Net Assets
|
|
|
|
Increase
(Decrease) in Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGE
IN NET ASSETS RESULTING FROM OPERATIONS |
|
|
Distributions
to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGE
IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS |
|
|
|
|
|
|
Proceeds
from sale of shares |
|
|
Net
asset value of shares issued to shareholders in payment of distributions declared |
|
|
|
|
|
|
CHANGE
IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Notes to
Financial Statements
Federated Hermes Money Market Obligations
Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the
“Act”), as an open-end, management investment company. The Trust consists of 15 portfolios. The financial statements included
herein are only those of Federated Hermes Government Reserves
Fund (the “Fund”), a diversified portfolio. The financial statements of the
other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder’s interest is limited to
the portfolio in which shares are held. Each portfolio pays its
own expenses. The Fund offers four classes of shares: Class A Shares, Class C Shares,
Class F Shares and Class P Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters.
The investment objective of the Fund is to provide current income consistent with stability of principal and liquidity.
The Fund operates as
a government money market fund. As a government money market fund, the Fund: (1) invests at least 99.5% of its
total assets in: (i) cash; (ii) securities issued or guaranteed by the United States or certain U.S. government agencies or instrumentalities;
and/or (iii) repurchase agreements that are collateralized fully; and (2) generally continues to use amortized cost to value
its portfolio securities and transact at a stable $1.00 net asset value (NAV).
2. SIGNIFICANT
ACCOUNTING POLICIES
The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of its financial statements.
These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Securities
are valued at amortized cost. The amortized cost method of valuation generally prescribes that an investment is valued at its acquisition
cost as adjusted daily for amortization of premium or accretion of discount to the specified redemption value on the nearest call,
demand or maturity date, as appropriate. If amortized cost is determined not to approximate fair value, the value of the portfolio securities
will be determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the
fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share,
and the actual value obtained could be materially different.
Pursuant to Rule 2a-5
under the Act, the Fund’s Board of Trustees (the “Trustees”) has designated Federated Investment Management
Company (the “Adviser”) as the Fund’s valuation designee to perform any fair value determinations for securities and
other assets held by the Fund. The Adviser is subject to the Trustees’
oversight and certain reporting and other requirements intended to provide
the Trustees the information needed to oversee the Adviser’s fair value determinations.
The Adviser, acting through
its valuation committee (“Valuation Committee”), is responsible for determining the fair value of investments.
The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser’s affiliated companies and determines
fair value of securities and oversees the comparison of amortized cost to market-based value. The Valuation Committee is also
authorized to use pricing services to provide fair value evaluations of the current value of certain investments for purposes of monitoring
the relationship of market-based value and amortized cost. The Valuation Committee employs various methods for reviewing third-party
pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods
(including key inputs and assumptions), and review of price challenges by the Adviser based on recent market activity. In the event
that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value
of the investment in accordance with procedures adopted by the Adviser. The Trustees periodically review the fair valuations made by
the Valuation Committee. The Trustees have also approved the Adviser’s fair valuation and significant events procedures as part
of the Fund’s compliance program and will review any changes
made to the procedures.
The
Fund may invest in repurchase agreements for short-term liquidity purposes. It is the policy of the Fund to require the other party to
a repurchase agreement to transfer to the Fund’s custodian
or sub-custodian eligible securities or cash with a market value (after transaction
costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred
to accounts with the custodian or sub-custodian in which the Fund holds a “securities entitlement” and exercises “control”
as those terms are defined in the Uniform Commercial Code. Certain
repurchase agreements may be structured as loans secured by a security
interest or lien on the eligible securities. The Fund has established procedures for monitoring the market value of the transferred securities
and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also
allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase
price or in exchange for other eligible securities of equivalent market value.
The insolvency of the
other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause
the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund
in excess of the repurchase price and related transaction costs must be remitted to the other party.
The Fund may enter into
repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the
custodian or sub-custodian for investment companies and other clients advised by the Fund’s Adviser and its affiliates. The Fund
will participate on a pro rata basis with the other investment
companies and clients in its share of the securities transferred under such repurchase
agreements and in its share of proceeds from any repurchase or other disposition of such securities.
Annual
Financial Statements and Additional Information
Repurchase
agreements are subject to Master Netting Agreements which are agreements between the Fund and its counterparties that
provide for the net settlement of all transactions and collateral with the Fund, through a single payment, in the event of default or
termination. Amounts presented on the Portfolio of Investments
and Statement of Assets and Liabilities are not net settlement amounts but
gross. As indicated above, the cash or securities to be repurchased, as shown on the Portfolio of Investments, exceeds the repurchase
price to be paid under the agreements reducing the net settlement amount to zero.
Investment Income, Gains and Losses, Expenses and Distributions
Investment
transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an
identified cost basis. Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date.
Distributions of net investment income, if any, are declared daily and paid monthly. In addition, distributions of capital gains, if any,
are declared and paid at least annually. Amortization/accretion
of premium and discount is included in investment income. Investment income,
realized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except
that select classes will bear certain expenses unique to those classes. Dividends are declared separately for each class. No class has
preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses. The
detail of the total fund expense waivers, reimbursement and reduction
of $7,504,357 is disclosed in various locations in this Note 2, Note
5 and Note 6.
For
the year ended July 31, 2026, transfer agent fees for the Fund were as shown below.
|
|
Transfer
Agent
Fees
Incurred |
Transfer
Agent
Fees
Reimbursed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund’s Class A Shares, Class C Shares, Class
F Shares and Class P Shares to unaffiliated financial intermediaries
or to Federated Shareholder Services Company (FSSC) for providing services
to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily
reimburse the Fund for other service fees. In addition, unaffiliated third-party financial intermediaries may waive other service fees.
This waiver can be modified or terminated at any time.
For the year ended July 31, 2026, other
service fees for the Fund were as follows:
|
|
Other
Service
Fees
Incurred |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
It
is the Fund’s policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986 (the “Code”) and
to distribute to shareholders each year substantially all of its
income. Accordingly, no provision for federal income tax is necessary. As of and during the year
ended July 31, 2026, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if
any, related to tax liabilities as income tax expense in the Statement
of Operations. As of July 31, 2026, tax years 2023 through 2026
remain subject to examination by the Fund’s major tax jurisdictions, which include the United States of America and the Commonwealth
of Massachusetts.
When-Issued and Delayed-Delivery Transactions
The
Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains
security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased
on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses
may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the
contract.
The
Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered
for public sale without first being registered, or being able
to take advantage of an exemption from registration, under the Securities Act of
1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale
without first being registered, the issuer of the restricted security
has agreed to register such securities for resale, at the issuer’s expense,
Annual
Financial Statements and Additional Information
either upon demand
by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be
resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria
established by the Trustees. The Fund will not incur any registration costs upon such resales. Restricted securities are valued at amortized
cost in accordance with Rule 2a-7 under the Act.
The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the
amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ materially from
those estimated. The Fund applies investment company accounting
and reporting guidance.
3. SHARES
OF BENEFICIAL INTEREST
The following tables summarize share activity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
issued to shareholders in payment of distributions declared |
|
|
|
|
|
|
|
|
|
|
NET
CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
issued to shareholders in payment of distributions declared |
|
|
|
|
|
|
|
|
|
|
NET
CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
issued to shareholders in payment of distributions declared |
|
|
|
|
|
|
|
|
|
|
NET
CHANGE RESULTING FROM CLASS F SHARE TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
issued to shareholders in payment of distributions declared |
|
|
|
|
|
|
|
|
|
|
NET
CHANGE RESULTING FROM CLASS P SHARE TRANSACTIONS |
|
|
|
|
NET
CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS |
|
|
|
|
4. FEDERAL
TAX INFORMATION
The tax character of distributions as reported
on the Statement of Changes in Net Assets for the years ended July 31, 2026 and 2025,
was as follows:
Annual
Financial Statements and Additional Information
As of July 31, 2026,
the components of distributable earnings on a tax-basis were as follows:
Undistributed
ordinary income1
|
|
|
|
For
tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings. |
Capital loss carryforwards of $8,502 were
utilized during the year ended July 31, 2026.
5. INVESTMENT
ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The
advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.15% of the Fund’s average daily net assets.
Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or
reimburse certain operating expenses of the Fund for competitive reasons such as to maintain the Fund’s expense ratio, or as and
when appropriate, to maintain positive or zero net yields. For
the year ended July 31, 2026, the Adviser voluntarily waived $1,799,276 of its
fee and voluntarily reimbursed $100,944 of transfer agent fees.
Federated
Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and
services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated
Hermes Funds subject to a fee under the Administrative Services
Agreement. The fee paid to FAS is based on the average daily net assets
of the Investment Complex as specified below:
|
|
Average
Daily Net Assets
of
the Investment Complex |
|
|
on
assets up to $50 billion |
|
|
on
assets over $50 billion |
Subject to the terms described in the Expense
Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the year ended
July 31, 2026, the annualized fee paid to FAS was 0.077% of average daily net assets of the Fund.
In addition, FAS may charge certain out-of-pocket
expenses to the Fund.
Distribution Services Fee
The
Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund
will compensate Federated Securities Corp. (FSC), the principal
distributor, from the daily net assets of the Fund’s Class A Shares, Class C Shares,
Class F Shares and Class P Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund
may incur distribution expenses at the following percentages of average daily net assets, annually, to compensate FSC:
|
|
Percentage
of Average Daily
Net
Assets of Class |
|
|
|
|
|
|
|
|
|
|
|
|
Subject to the terms described in the Expense
Limitation note, FSC may voluntarily choose to waive any portion of its fee. For the year ended
July 31, 2026, distribution services fees for the Fund were as follows:
|
|
Distribution
Services
Fees
Incurred |
Distribution
Services
Fees
Waived |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
When FSC receives fees, it may pay some
or all of them to financial intermediaries whose customers purchase shares. For the year ended July
31, 2026, FSC retained $1,426,749 of fees paid by the Fund.
Front-end
sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the year ended
July 31, 2026, FSC retained $865 of CDSC relating to redemptions of Class C Shares.
Annual
Financial Statements and Additional Information
Other Service Fees
For
the year ended July 31, 2026, FSSC received $107,817 of other service fees disclosed in Note 2.
Due
to the possibility of changes in market conditions and other factors, there can be no assurance that the level of waivers/reimbursements
of Fund expenses reflected in the financial highlights will be maintained in the future. The Adviser and certain of its affiliates
(which may include FSC, FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or
reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, extraordinary
expenses and proxy-related expenses, if any) paid by the Fund’s Class A Shares, Class C Shares, Class F Shares and Class P Shares
(after the voluntary waivers and reimbursements) will not exceed 0.87%, 1.27%, 0.87% and 1.02% (the “Fee Limit”), respectively,
up to but not including the later of (the “Termination Date”):
(a) October 1, 2027; or (b) the date of the Fund’s next effective Prospectus. While
the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination
Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the approval
of the Trustees.
Directors’/Trustees’ and Miscellaneous Fees
Certain
Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate
payment, Independent Directors’/Trustees’ fees and
certain expenses related to conducting meetings of the Directors/Trustees and other
miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related
to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous
Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
Through arrangements with the Fund’s
custodian, net credits realized as a result of uninvested cash balances were used to offset custody expenses.
For the year ended July 31, 2026, the Fund’s expenses were offset by $49,810 under these arrangements.
The Fund may place its cash on deposit with
financial institutions in the United States, which are insured by the Federal Deposit Insurance
Corporation (FDIC) up to $250,000. The Fund’s credit risk in the event of failure of these financial institutions is represented
by the difference between the FDIC limit and the total amounts
on deposit. The Fund from time to time may have amounts on deposit in excess
of the insured limits.
Pursuant to an Exemptive Order issued by
the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries
of Federated Hermes, Inc., may participate in an interfund lending program. This program provides an alternative credit facility
allowing the Fund to borrow from other participating affiliated funds. As of July 31, 2026, there were no outstanding loans. During
the year ended July 31, 2026, the program was not utilized.
An operating segment is defined as a component
of a public entity that engages in business activities from which it may recognize revenues
and incur expenses, has operating results that are regularly reviewed by the public entity’s chief operating decision maker (CODM)
to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information
available. A management committee of the Adviser acts as the CODM. The Fund represents a single operating segment, as the
CODM monitors the operating results of the Fund as a whole and the strategic asset allocation is determined based on the investment
objective of the Fund and executed by the Fund’s portfolio management team. The financial information in the form of the Fund’s
portfolio composition, total returns, expense ratios and changes in net assets (i.e., changes in net assets resulting from operations,
subscriptions and redemptions) which is reviewed by the CODM to assess the Fund’s performance in comparison to the Fund’s
benchmarks and to make resource allocation decisions for the Fund’s single segment is consistent with the information presented
in these financial statements. Segment assets are reflected on
the accompanying Statement of Assets and Liabilities as “total assets” and significant
segment expenses are listed on the accompanying Statement of Operations.
Under the Fund’s organizational documents,
its Officers and Directors/Trustees are indemnified against certain liabilities arising out of the
performance of their duties to the Fund (other than liabilities arising out of their willful misfeasance, bad faith, gross negligence
or reckless disregard of their duties to the Fund). In addition,
in the normal course of business, the Fund provides certain indemnifications under
arrangements with third parties. Typically, obligations to indemnify a third party arise in the context of an arrangement entered into
by the Fund under which the Fund agrees to indemnify such third party for certain liabilities arising out of actions taken pursuant to
the arrangement, provided the third party’s actions are
not deemed to have breached an agreed-upon standard of care (such as willful misfeasance,
bad faith, gross negligence or reckless disregard of their duties under the contract). The Fund’s maximum exposure under these
arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet arisen. The Fund
does not anticipate any material claims or losses pursuant to these arrangements at this time, and accordingly expects the risk of loss
to be remote.
Annual
Financial Statements and Additional Information
11. FEDERAL
TAX INFORMATION (UNAUDITED)
For the year ended July 31, 2026, 99.9%
of total ordinary income distributions qualified as business interest income for purposes of 163(j)
and the regulations thereunder.
On May 14, 2026, the Directors approved
a Plan of Conversion for the Class F Shares of the Fund pursuant to which the Class F Shares of the
Fund will be converted into the Fund’s existing Class A Shares on or about August 28, 2026, resulting in the closure and termination
of the Fund’s Class F Shares.
Annual
Financial Statements and Additional Information
Report of
Independent Registered Public Accounting Firm
TO THE SHAREHOLDERS and the
BOARD OF TRUSTEES OF FEDERATED HERMES GOVERNMENT RESERVES
FUND:
Opinion on the Financial Statements
We have audited the accompanying
statement of assets and liabilities of Federated Hermes Government Reserves Fund (the
“Fund”) (one of the portfolios constituting Federated Hermes Money Market Obligations Trust (the “Trust”)), including
the portfolio of investments, as of July 31, 2026, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of
the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In
our opinion, the financial statements present fairly,
in all material respects, the financial position of the Fund (one of the portfolios
constituting Federated Hermes Money Market Obligations Trust) at July 31, 2026, the results of its operations for
the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights
for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting
principles.
These financial statements are
the responsibility of the Trust’s management. Our responsibility is to express an opinion on the
Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance
with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.
We conducted our audits in accordance
with the standards of the PCAOB. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether
due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal
control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control
over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal
control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing
procedures to assess the risks of material misstatement of the financial statements, whether due
to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation
of securities owned as of July 31, 2026, by correspondence with the custodian, brokers, and others; when replies
were not received from brokers or others, we performed other auditing procedures. Our audits also included evaluating
the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation
of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor
of one or more Federated Hermes investment companies since 1979.
Boston, Massachusetts
September 23, 2026
Annual
Financial Statements and Additional Information
Evaluation
and Approval of Advisory Contract–May
2026
Federated Hermes Government
Reserves Fund (the “Fund”)
At its meetings in May 2026 (the
“May Meetings”), the Fund’s Board of Trustees (the “Board”), including those Trustees who
are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940, as amended (the
“Independent Trustees”), reviewed and unanimously approved the continuation of the investment advisory contract between
the Fund and Federated Investment Management Company (the “Adviser”) (the “Contract”) for an additional one-year
term. The Board’s determination to approve the continuation of the Contract reflects the exercise of its business judgment
after considering such information deemed necessary to evaluate the terms of the Contract and to approve the continuation
of the existing arrangement. The information, factors and conclusions that formed the basis for the Board’s approval
are summarized below.
Information Received
and Review Process
At the request
of the Independent Trustees, the Fund’s Chief Compliance Officer (the “CCO”) furnished to the Board in advance
of its May Meetings an independent written report regarding data related to the Fund’s management fee (the
“CCO Management Fee Report”). The Board considered the CCO Management Fee Report, along with other information,
in evaluating the reasonableness of the Fund’s management fee and in determining to approve the continuation
of the Contract.
In addition
to the CCO Management Fee Report, the Board considered information specifically prepared in connection with
the approval of the continuation of the Contract that was presented at the May Meetings. In this regard, in the months preceding
the May Meetings, the Board requested and reviewed written responses and supporting materials prepared by the
Adviser and its affiliates (collectively, “Federated Hermes”) in response to requests posed to Federated Hermes by independent
legal counsel on behalf of the Independent Trustees encompassing a wide variety of topics, including those summarized
below. The Board also considered such additional matters as the Independent Trustees deemed reasonably necessary
to evaluate the Contract, which included detailed information about the Fund and Federated Hermes furnished to the
Board at its meetings throughout the year.
The Board’s
consideration of the Contract included review of materials and information covering the following matters, among
others: (1) a copy of the Contract; (2) the nature, quality and extent of the advisory and other services provided to the
Fund by Federated Hermes; (3) Federated Hermes’ business and operations; (4) the Adviser’s investment philosophy, personnel
and processes; (5) the Fund’s investment objective and strategies; (6) the Fund’s short-term and long-term performance
- in absolute terms (both on a gross basis and net of expenses) and relative to an appropriate group of peer funds
and its benchmark; (7) the Fund’s fees and expenses, including the advisory fee and the overall expense structure of the
Fund - in absolute terms and relative to an appropriate group of peer funds, with due regard for contractual or voluntary
expense limitations (if any); (8) the financial condition of Federated Hermes; (9) the Adviser’s profitability with respect
to managing the Fund; (10) distribution and sales activity for the Fund; and (11) the use and allocation of brokerage
commissions derived from trading the Fund’s portfolio securities (if any).
The Board
also considered judicial decisions concerning allegedly excessive investment advisory fees charged to other registered
funds in evaluating the Contract. Using these judicial decisions as a guide, the Board considered several factors it
deemed relevant to an adviser’s fiduciary duty with respect to its receipt of compensation from a fund, including: (1) the nature
and quality of the services provided by the adviser to the fund and its shareholders, including the performance of the
fund, its benchmark and comparable funds; (2) the adviser’s cost of providing the services and the profitability to the adviser
of providing advisory services to the fund; (3) the extent to which the adviser may realize “economies of scale” as the
fund grows larger and, if such economies of scale exist, whether they have been appropriately shared with the fund and its
shareholders or the family of funds; (4) any “fall-out” benefits that accrue to the adviser because of its relationship with
the fund, including research services received from
brokers that execute fund trades and any fees paid to affiliates of the adviser
for services rendered to the fund; (5) comparative fees and expenses, including a comparison of management fees paid
to the adviser with those paid by similar funds managed by the same adviser or other advisers as well as management fees
charged to institutional and other advisory clients of the same adviser for what might be viewed as like services; and (6)
the extent of care, conscientiousness and independence with which the fund’s board members perform their duties and their
expertise, including whether they are fully informed about all facts the board deems relevant to its consideration of the
adviser’s services and fees. The Board considered that the Securities and Exchange Commission (“SEC”) disclosure requirements
regarding the basis for a fund board’s approval of the fund’s investment advisory contract generally align with
the factors listed above. The Board was guided by these factors in its evaluation of the Contract to the extent it considered
them to be appropriate and relevant, as discussed further below. The Board considered and weighed these factors
in light of its substantial accumulated experience in governing the Fund and working with Federated Hermes on matters
relating to the oversight of the other funds advised by Federated Hermes (each, a “Federated Hermes Fund” and, collectively,
the “Federated Hermes Funds”).
Annual
Financial Statements and Additional Information
In
addition, the Board considered the preferences and expectations of Fund shareholders and the potential disruptions of the
Fund’s operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate
or not renew the Contract. In particular, the Board recognized that many shareholders likely have invested in the Fund
based on the strength of Federated Hermes’ industry standing and reputation and with the expectation that Federated Hermes
will have a continuing role in providing advisory services to the Fund. Thus, the Board observed that there are a range
of investment options available to the Fund’s shareholders in the marketplace, and such shareholders, having had the opportunity
to consider other investment options, have effectively selected Federated Hermes by virtue of investing in the
Fund.
In determining
to approve the continuation of the Contract, the members of the Board reviewed and evaluated information
and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment.
While individual members of the Board may have weighed certain factors differently, the Board’s determination
to approve the continuation of the Contract was based on a comprehensive consideration of all information provided
to the Board throughout the year. The Board recognized that its evaluation process is evolutionary and that the factors
considered and the emphasis placed on relevant factors may change in recognition of changing circumstances in the
registered fund marketplace. The Independent Trustees were assisted throughout the evaluation process by independent legal
counsel. In connection with their deliberations at the May Meetings, the Independent Trustees met separately in executive
session with their independent legal counsel and without management present to review the relevant materials and
consider their responsibilities under applicable laws. In addition, senior management representatives of Federated Hermes
also met with the Independent Trustees and their independent legal counsel to discuss the materials and presentations
furnished to the Board at the May Meetings. The Board considered the approval of the Contract for the Fund as
part of its consideration of agreements for funds across the family of Federated Hermes Funds, but its approvals were made
on a fund-by-fund basis.
Nature, Extent and
Quality of Services
The Board
considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources
of Federated Hermes dedicated to the Fund. In this regard, the Board evaluated, among other things, the terms of the
Contract and the full range of services provided to the Fund by Federated Hermes. The Board considered the Adviser’s personnel,
investment philosophy and process, investment research capabilities and resources, trade operations capabilities,
experience and performance track record. The Board reviewed the qualifications, backgrounds and responsibilities
of the portfolio management team primarily responsible for the day-to-day management of the Fund and evaluated
Federated Hermes’ ability and experience in attracting and retaining qualified personnel to service the Fund. The Board
considered the trading operations by the Adviser, including the execution of portfolio transactions and the selection of
brokers for those transactions. In addition, the Board noted that the Fund is a money market mutual fund that operates in accordance
with the limitations set forth in Rule 2a-7 under the Investment Company Act of 1940, as amended. In this connection,
the Board considered the expertise of the Adviser in managing money market funds, its extensive experience with
the requirements of Rule 2a-7 and its commitment to managing the Fund in accordance with these requirements. The Board
also considered the Adviser’s ability to deliver competitive investment performance for the Fund when compared to the
Fund’s Performance Peer Group (as defined below), which was deemed by the Board to be a useful indicator of how the
Adviser is executing the Fund’s investment program.
In addition,
the Board considered the financial resources and overall reputation of Federated Hermes and its willingness to
consider and make investments in personnel, infrastructure, technology, cybersecurity, business continuity planning and operational
enhancements that are designed to benefit the Federated Hermes Funds. The Board considered the quality of Federated
Hermes’ communications with the Board and responsiveness to Board inquiries and requests made from time to time
with respect to the Federated Hermes Funds. The Board also considered that Federated Hermes is responsible for providing
the Federated Hermes Funds’ officers.
The Board
received and evaluated information regarding Federated Hermes’ regulatory and compliance environment. The
Board considered Federated Hermes’ compliance program and compliance history and reports from the CCO about Federated
Hermes’ compliance with applicable laws and regulations, including responses to regulatory developments and any
compliance or other issues raised by regulatory agencies. The Board also noted Federated Hermes’ support of the Federated
Hermes Funds’ compliance control structure and the compliance-related resources devoted by Federated Hermes
in support of the Fund’s obligations pursuant to Rule 38a-1 under the Investment Company Act of 1940, as amended,
including Federated Hermes’ commitment to respond to rulemaking and other regulatory initiatives of the SEC. The
Board considered Federated Hermes’ approach to internal audits and risk management with respect to the Federated Hermes
Funds and its day-to-day oversight of the Federated Hermes Funds’ compliance with their investment objectives and
policies as well as with applicable laws and regulations, noting that regulatory and other developments had over time
Annual
Financial Statements and Additional Information
led, and
continue to lead, to an increase in the scope of Federated Hermes’ oversight in this regard. In addition, the Board noted
Federated Hermes’ commitment to maintaining high quality systems and expending substantial resources to prepare for
and respond to ongoing changes due to the market, regulatory and control environments in which the Fund and its service
providers operate.
The Board
considered Federated Hermes’ efforts to provide shareholders in the Federated Hermes Funds with a comprehensive
array of funds with different investment objectives, policies and strategies. The Board considered the expenses
that Federated Hermes had incurred, as well as the entrepreneurial and other risks assumed by Federated Hermes, in
sponsoring and providing on-going services to new funds to expand these opportunities for shareholders. The Board noted
the benefits to shareholders of being part of the family of Federated Hermes Funds, which include the general right to
exchange investments between the same class of shares without the incurrence of additional sales charges.
Based on
these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services
provided by the Adviser to the Fund.
Fund Investment Performance
The Board
considered the investment performance of the Fund. In evaluating the Fund’s investment performance, the Board
considered performance results in light of the Fund’s investment objective, strategies and risks. The Board considered
detailed investment reports on, and the Adviser’s analysis of, the Fund’s performance over different time periods
that were provided to the Board throughout the year and in connection with the May Meetings. These reports included,
among other items, information on the Fund’s gross and net returns, the Fund’s investment performance compared
to one or more relevant categories or groups of peer funds and the Fund’s benchmark, performance attribution information
and commentary on the effect of market conditions. The Board noted that it evaluated investment performance at
meetings throughout the year and received reports from Federated Hermes regarding the performance of certain Federated
Hermes Funds as well as Federated Hermes’ explanations for less favorable performance and any specific actions
Federated Hermes had taken, or had determined to take, to seek to enhance Fund investment performance and the results
of those actions.
The Board
also reviewed comparative information regarding the performance of other registered funds in the category of
peer funds selected by iMoneyNet, an independent fund ranking organization (the “Performance Peer Group”). The Board
noted the CCO’s statement that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating
the performance of the Adviser in managing the Fund.
The Board
also considered comparative performance data from Lipper, Inc. that was included in reports provided to the Board
throughout the year.
The Board
considered that the Fund’s performance fell below the median of the Performance Peer Group for the one-year
period ended December 31, 2025. The Board discussed the Fund’s performance with the Adviser, including the reasons
for and any plans to seek to improve the Fund’s performance, and recognized the efforts being taken by the Adviser
in the context of other factors considered relevant by the Board. The Board also considered the relatively tight dispersion
of performance data with respect to the Fund and its Peer Group.
Based on
these considerations, the Board concluded that it had continued confidence in the Adviser’s overall capabilities
to manage the Fund.
The Board
considered the advisory fee and overall expense structure of the Fund and the comparative fee and expense information
that had been provided in connection with the May Meetings. In this regard, the Board was presented with, and
considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each
element of the Fund’s total expense ratio (i.e., gross and net advisory fees, administrative fees, custody fees, portfolio accounting
fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated Hermes from
the overall category of peer funds selected by iMoneyNet (the “Expense Peer Group”). The Board received a description
of the methodology used to select the Expense Peer Group from the overall iMoneyNet category. The Board also
reviewed comparative information regarding the fees and expenses of the broader group of funds in the overall iMoneyNet
category.
While mindful
that courts have cautioned against giving too much weight to comparative information concerning fees charged
to funds by other advisers, the Board found that the use of comparisons between the Fund and its Expense Peer Group
assisted the Board in its evaluation of the Fund’s fees and expenses. The Board focused on comparisons with other registered
funds more heavily than non-registered fund products or services because such comparisons are believed to be more
relevant. The Board considered that other registered funds are the products most like the Fund, in that they are
Annual
Financial Statements and Additional Information
readily available
to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle, in fact,
chosen and maintained by the Fund’s shareholders. The Board noted that the range of such other registered funds’ fees
and expenses, therefore, appears to be a relevant indicator of what investors have found to be reasonable in the marketplace
in which the Fund competes.
The Board
reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position
of the Fund’s fee rates relative to its Expense Peer Group. In this regard, the Board noted that the contractual advisory
fee rate was below the median of the Expense Peer Group, and the Board was satisfied that the overall expense structure
of the Fund remained competitive.
The Board
also received and considered information about the nature and extent of services offered and fees charged by Federated
Hermes to other types of clients with investment strategies similar to those of the Federated Hermes Funds, including
non-registered fund clients (such as institutional separate accounts) and third-party unaffiliated registered funds for
which the Adviser or its affiliates serve as sub-adviser. The Board noted the CCO’s statement that non-registered fund clients
are inherently different products due to the following differences, among others: (i) types of targeted investors; (ii)
applicable laws and regulations; (iii) legal structures; (iv) average account sizes; (v) portfolio management techniques made
necessary by different cash flows and different associated costs; (vi) the time spent by portfolio managers and their teams
(among other personnel across various departments, including legal, compliance and risk management) in reviewing securities
pricing; (vii) SEC mandated risk management programs with respect to fund liquidity and use of derivatives; (viii)
questions on regulatory reporting; (ix) a variety of different administrative responsibilities; and (x) degrees of risk associated
with management. The Board also considered information regarding the differences in the nature of the services required
for Federated Hermes to manage its proprietary registered fund business versus managing a discrete pool of assets as
a sub-adviser to another institution’s registered fund, noting the CCO’s statement that Federated Hermes generally performs
significant additional services and assumes substantially greater risks in managing the Fund and other Federated Hermes
Funds than in its role as sub-adviser to an unaffiliated third-party registered fund. The Board noted that the CCO emphasized
that differences in fees for providing advisory services to other types of clients may not be appropriate when judging
the appropriateness of the Federated Hermes Funds’ advisory fees because of the different services provided.
In the case
of the Fund, the Board noted that Federated Hermes does not manage any other types of clients that are comparable
to the Fund.
Based on
these considerations, the Board concluded that the fees and total operating expenses of the Fund, in conjunction
with other matters considered, are reasonable in light of the services provided.
The Board
received and considered profitability information furnished by Federated Hermes. Such profitability information
included revenues reported on a fund-by-fund basis and estimates of the allocation of expenses made on a fund-by-fund
basis, using allocation methodologies specified by the CCO and described to the Board. The Board considered
the CCO’s statement that, while the cost allocation report applies consistent allocation processes for purposes of
general comparison of funds, the inherent difficulties in arbitrarily allocating costs lack precision and may cause the report
to be unreliable because a single change in an allocation estimate can dramatically alter the resulting estimate of cost
and/or profitability of a Federated Hermes Fund and may produce unintended consequences. In addition, the Board considered
the CCO’s statement that the allocation methodologies used by Federated Hermes in estimating profitability for purposes
of reporting to the Board in connection with the continuation of the Contract are consistent with the methodologies
previously reviewed by an independent consultant. The Board noted that the independent consultant had previously
conducted a review of the allocation methodologies and reported to the Board that, although there is no single best
method to allocate expenses, the methodologies used by Federated Hermes are reasonable. The Board considered the CCO’s
statement that the estimated profitability to the Adviser from its relationship with the Fund was not unreasonable in relation
to the services provided.
The Board
also reviewed information compiled by Federated Hermes comparing its profitability information to other publicly-held
fund management companies, including information regarding profitability trends over time. The Board recognized
that profitability comparisons among fund management companies are difficult because of the variation in the type
of comparative information that is publicly available, and the profitability of any fund management company is affected
by numerous factors. The Board considered the CCO’s statement that, based on such profitability information, Federated
Hermes’ profit margins did not appear to be excessive and that Federated Hermes appeared financially sound, with
the resources available to fulfill its contractual obligations.
Annual
Financial Statements and Additional Information
Economies
of Scale
The Board
received and considered information about the notion of possible realization of “economies of scale” as a fund
grows larger, the difficulties of isolating and quantifying economies of scale at an individual fund level, and the extent
to which potential scale benefits are shared with shareholders. In this regard, the Board considered that Federated Hermes
has made significant and long-term investments in areas that support all of the Federated Hermes Funds, such as: portfolio
management, investment research and trading operations; shareholder services; compliance; business continuity, cybersecurity
and information security programs; internal audit and risk management functions; and technology, systems capabilities
and use of data. The Board noted that Federated Hermes’ investments in these areas are extensive and are designed
to provide enhanced or expanded services to the Federated Hermes Funds and their shareholders. The Board considered
that the benefits of these investments are likely to be shared with the family of Federated Hermes Funds as a whole.
In addition, the Board considered that fee waivers and expense reimbursements are another means for potential economies
of scale to be shared with shareholders and can provide protection from an increase in expenses if a Federated Hermes
Fund’s assets decline. The Board considered that, in order for the Federated Hermes Funds to remain competitive in
the marketplace, Federated Hermes has frequently waived fees and/or reimbursed expenses for the Federated Hermes Funds
and has disclosed to shareholders and/or reported to the Board its intention to do so (or continue to do so) in the future.
The Board also considered that Federated Hermes has been active in managing expenses of the Federated Hermes Funds
in recent years, which has resulted in benefits being realized by shareholders.
The Board
also received and considered information on adviser-paid fees (commonly referred to as “revenue sharing” payments)
that was provided to the Board throughout the year and in connection with the May Meetings. The Board considered
that Federated Hermes believes that this information is relevant to consider whether Federated Hermes had an incentive
to either not apply breakpoints, or to apply breakpoints at higher levels, but should not be considered when evaluating
the reasonableness of advisory fees. The Board also noted the absence of any applicable regulatory or industry guidelines
on economies of scale, which is compounded by the lack of any uniform methodology or pattern with respect to structuring
fund advisory fees with breakpoints that serve to reduce the fees as a fund attains a certain size.
The Board
considered information regarding the compensation and other ancillary (or “fall-out”) benefits that Federated Hermes
derived from its relationships with the Federated Hermes Funds. The Board considered that Federated Hermes may
derive a benefit to its reputation as an adviser to the Fund, which may help in attracting other clients and investment personnel.
The Board noted that, in addition to receiving advisory fees under the Federated Hermes Funds’ investment advisory
contracts, Federated Hermes’ affiliates also receive fees for providing other services to the Federated Hermes Funds
under separate service contracts, including for serving as the Federated Hermes Funds’ administrator and distributor.
In this regard, the Board considered that Federated Hermes’ affiliates provide distribution and shareholder services
to the Federated Hermes Funds, for which they may be compensated through distribution and servicing fees paid pursuant
to Rule 12b-1 plans or otherwise. The Board also received and considered information detailing the benefits, if any,
that Federated Hermes may derive from its receipt of research services from brokers who execute portfolio trades for the
Federated Hermes Funds.
The Board
considered the CCO’s presentation and statements and the information accompanying the CCO Management Fee
Report. The Board recognized that its evaluation of the Federated Hermes Funds’ advisory and sub-advisory arrangements
is a continuing and ongoing process that is informed by the information that the Board requests and receives from
management throughout the course of the year.
On the basis
of the information and factors summarized above, among other information and factors deemed relevant by the
Board, and the evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the continuation
of the Contract. The Board based its determination to approve the Contract on the totality of the circumstances
and relevant factors and with a view of past and future long-term considerations. Not all of the factors and considerations
identified above were necessarily deemed to be relevant to the Fund, nor did the Board consider any one of them
to be determinative.
Annual
Financial Statements and Additional Information
You could lose money
by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support
to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
This information is authorized
for distribution to prospective investors only when preceded or accompanied by the Fund’s Prospectus,
which contains facts concerning its objective and policies, management fees, expenses and other information.
Federated Hermes Government Reserves Fund
Federated Hermes Funds
4000
Ericsson Drive
Warrendale, PA 15086-7561
Contact us at
FederatedHermes.com/us
or
call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 608919544
CUSIP
608919528
CUSIP 608919510
CUSIP
608919205
©
2026 Federated Hermes, Inc.
Annual Financial Statements
and Additional Information
Federated
Hermes Government Obligations Tax-Managed Fund
A
Portfolio of Federated Hermes Money Market Obligations Trust
Not FDIC Insured ▪ May
Lose Value ▪ No Bank Guarantee
Portfolio
of Investments
|
|
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|
|
|
|
|
|
|
|
|
|
United
States Treasury Bill, 3.390%, 1/21/2027 |
|
|
|
|
United
States Treasury Bill, 3.460%, 11/27/2026 |
|
|
|
|
United
States Treasury Bill, 3.540%, 10/1/2026 |
|
|
|
|
United
States Treasury Bill, 3.560%, 4/15/2027 |
|
|
|
|
United
States Treasury Bill, 3.630%, 8/11/2026 |
|
|
|
|
United
States Treasury Bill, 3.635%, 10/6/2026 |
|
|
|
|
United
States Treasury Bill, 3.640%, 9/17/2026 |
|
|
|
|
United
States Treasury Bill, 3.650%, 9/15/2026 |
|
|
|
|
United
States Treasury Bill, 3.656%, 3/18/2027 |
|
|
|
|
United
States Treasury Bill, 3.670%, 10/20/2026 |
|
|
|
|
United
States Treasury Bill, 3.750%, 6/10/2027 |
|
|
|
|
United
States Treasury Bill, 3.770%, 10/27/2026 |
|
|
|
|
United
States Treasury Bill, 3.790%, 11/10/2026 |
|
|
|
|
United
States Treasury Bill, 3.795%, 11/3/2026 |
|
|
|
|
United
States Treasury Bill, 3.840%, 12/24/2026 |
|
|
|
|
United
States Treasury Bill, 3.875%, 12/1/2026 |
|
|
|
|
United
States Treasury Bills, 3.525% - 3.640%, 8/27/2026 |
|
|
|
|
United
States Treasury Bills, 3.535% - 3.650%, 9/3/2026 |
|
|
|
|
United
States Treasury Bills, 3.580% - 3.590%, 8/6/2026 |
|
|
|
|
United
States Treasury Bills, 3.590% - 3.815%, 10/29/2026 |
|
|
|
|
United
States Treasury Bills, 3.600% - 3.635%, 8/20/2026 |
|
|
|
|
United
States Treasury Bills, 3.600% - 3.730%, 8/25/2026 |
|
|
|
|
United
States Treasury Bills, 3.605% - 3.615%, 8/4/2026 |
|
|
|
|
United
States Treasury Bills, 3.605% - 3.635%, 9/8/2026 |
|
|
|
|
United
States Treasury Bills, 3.610% - 3.655%, 8/13/2026 |
|
|
|
|
United
States Treasury Bills, 3.615% - 3.735%, 10/8/2026 |
|
|
|
|
United
States Treasury Bills, 3.620% - 3.660%, 8/18/2026 |
|
|
|
|
United
States Treasury Bills, 3.640% - 3.670%, 9/10/2026 |
|
|
|
|
United
States Treasury Floating Rate Notes, 3.902% (91-day T-Bill +0.050%), 8/4/2026 |
|
|
|
|
United
States Treasury Floating Rate Notes, 3.940% (91-day T-Bill +0.088%), 8/4/2026 |
|
|
|
|
United
States Treasury Floating Rate Notes, 3.950% (91-day T-Bill +0.098%), 8/4/2026 |
|
|
|
|
United
States Treasury Floating Rate Notes, 4.012% (91-day T-Bill +0.160%), 8/4/2026 |
|
|
|
|
United
States Treasury Floating Rate Notes, 4.057% (91-day T-Bill +0.205%), 8/4/2026 |
|
|
|
|
United
States Treasury Note, 1.125%, 10/31/2026 |
|
|
|
|
United
States Treasury Note, 3.500%, 9/30/2026 |
|
|
|
|
United
States Treasury Note, 3.750%, 6/30/2027 |
|
|
|
|
United
States Treasury Note, 3.750%, 8/31/2026 |
|
|
|
|
United
States Treasury Note, 3.875%, 3/31/2027 |
|
|
|
|
United
States Treasury Note, 4.125%, 2/15/2027 |
|
|
|
|
United
States Treasury Note, 4.625%, 9/15/2026 |
|
|
|
|
United
States Treasury Notes, 2.625% - 3.875%, 5/31/2027 |
|
|
|
|
United
States Treasury Notes, 2.625% - 3.875%, 5/31/2027 |
|
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|
|
|
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|
|
GOVERNMENT
AGENCIES—38.7% |
|
|
|
|
Federal
Farm Credit System Discount Notes, 3.680%, 8/25/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.675% (SOFR +0.025%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.695% (SOFR +0.045%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.705% (SOFR +0.055%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.730% (SOFR +0.080%), 8/3/2026 |
|
Annual
Financial Statements and Additional Information
|
|
|
|
|
|
|
|
GOVERNMENT
AGENCIES—continued
|
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.735% (SOFR +0.085%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.740% (SOFR +0.090%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.745% (SOFR +0.095%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.750% (SOFR +0.100%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.755% (SOFR +0.105%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.765% (SOFR +0.115%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.775% (SOFR +0.125%), 8/3/2026 |
|
|
|
|
Federal
Farm Credit System Floating Rate Notes, 3.780% (SOFR +0.130%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Discount Notes, 3.509% - 3.740%, 8/5/2026 - 12/4/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.665% (SOFR +0.015%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.670% (SOFR +0.020%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.685% (SOFR +0.035%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.690% (SOFR +0.040%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.700% (SOFR +0.050%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.705% (SOFR +0.055%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.710% (SOFR +0.060%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.730% (SOFR +0.080%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.740% (SOFR +0.090%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System Floating Rate Notes, 3.775% (SOFR +0.125%), 8/3/2026 |
|
|
|
|
Federal
Home Loan Bank System, 3.500% - 4.255%, 10/23/2026 - 8/20/2027 |
|
|
|
|
TOTAL
GOVERNMENT AGENCIES |
|
|
|
|
TOTAL
INVESTMENT IN SECURITIES—101.5%
(AT
AMORTIZED COST)3
|
|
|
|
|
OTHER
ASSETS AND LIABILITIES - NET—(1.5%)4
|
|
|
|
|
|
|
|
|
Floating/variable
note with current rate and current maturity or next reset date shown. |
|
|
Discount
rate at time of purchase. |
|
|
Also
represents cost of investments for federal tax purposes. |
|
|
Assets,
other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Note: The categories of investments are
shown as a percentage of net assets at July 31, 2026.
Various inputs are used in determining the
value of the Fund’s investments. These inputs are summarized in the three broad levels listed
below:
Level 1—quoted prices in active markets
for identical securities.
Level 2—other significant observable
inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk,
etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs
(including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing
securities are not an indication of the risk associated with investing in those securities.
In valuing the Fund’s assets as of
July 31, 2026, all investments of the Fund are valued using amortized cost, which is a methodology utilizing
Level 2 inputs.
The
following acronym(s) are used throughout this portfolio: |
|
|
|
—Secured
Overnight Financing Rate |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Financial
Highlights–Automated
Shares
(For a Share Outstanding Throughout Each
Period)
|
|
|
|
|
|
|
|
|
|
Net Asset
Value, Beginning of Period |
|
|
|
|
|
Income
From Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
FROM INVESTMENT OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
from net investment income |
|
|
|
|
|
Distributions
from net realized gain |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Asset Value, End of Period |
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
waiver/reimbursement6
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
|
|
|
|
|
|
|
Per
share numbers have been calculated using the average shares method. |
|
|
Represents
less than $0.001. |
|
|
Based
on net asset value. |
|
|
Amount
does not reflect net expenses incurred by investment companies in which the Fund may invest. |
|
|
The
net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.55%, 0.55%, 0.54% and
0.53% for the
years
ended July 31, 2026, 2025, 2024 and 2023, respectively, after taking into account these expense reductions. |
|
|
This
expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense
waiver/
reimbursement
recorded by investment companies in which the Fund may invest. |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Financial
Highlights–Institutional
Shares
(For a Share Outstanding Throughout Each
Period)
|
|
|
|
|
|
|
|
|
|
Net Asset
Value, Beginning of Period |
|
|
|
|
|
Income
From Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
FROM INVESTMENT OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
from net investment income |
|
|
|
|
|
Distributions
from net realized gain |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Asset Value, End of Period |
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
waiver/reimbursement6
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
|
|
|
|
|
|
|
Per
share numbers have been calculated using the average shares method. |
|
|
Represents
less than $0.001. |
|
|
Based
on net asset value. |
|
|
Amount
does not reflect net expenses incurred by investment companies in which the Fund may invest. |
|
|
The
net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.20%, 0.20%, 0.20% and
0.20% for the
years
ended July 31, 2026, 2025, 2024 and 2023, respectively, after taking into account these expense reductions. |
|
|
This
expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense
waiver/
reimbursement
recorded by investment companies in which the Fund may invest. |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Financial
Highlights–Service
Shares
(For a Share Outstanding Throughout Each
Period)
|
|
|
|
|
|
|
|
|
|
Net Asset
Value, Beginning of Period |
|
|
|
|
|
Income
From Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
FROM INVESTMENT OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
from net investment income |
|
|
|
|
|
Distributions
from net realized gain |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Asset Value, End of Period |
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
waiver/reimbursement6
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
|
|
|
|
|
|
|
Per
share numbers have been calculated using the average shares method. |
|
|
Represents
less than $0.001. |
|
|
Based
on net asset value. |
|
|
Amount
does not reflect net expenses incurred by investment companies in which the Fund may invest. |
|
|
The
net expense ratios are calculated without reduction for expense offset arrangements. The net expense ratios are 0.45%, 0.45%, 0.45% and
0.45% for the
years
ended July 31, 2026, 2025, 2024 and 2023, respectively, after taking into account these expense reductions. |
|
|
This
expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense
waiver/
reimbursement
recorded by investment companies in which the Fund may invest. |
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Statement
of Assets and Liabilities
July 31, 2026
|
|
|
Investment
in securities, at amortized cost and fair value |
|
|
|
|
|
|
|
Receivable
for shares sold |
|
|
|
|
|
|
|
Payable
for investments purchased |
|
Income
distribution payable |
|
Payable
for shares redeemed |
|
Payable
for other service fees (Notes 2 and 5)
|
|
Payable
for investment adviser fee (Note 5)
|
|
Payable
for administrative fee (Note 5)
|
|
Payable
for Directors’/Trustees’ fees (Note 5)
|
|
Accrued
expenses (Note 5) |
|
|
|
|
Net
assets for 7,272,480,494 shares outstanding |
|
|
|
|
|
|
|
Total
distributable earnings (loss) |
|
|
|
|
Net Asset
Value, Offering Price and Redemption Proceeds Per Share: |
|
|
|
|
$546,884,852
÷ 546,878,256 shares outstanding, no par value, unlimited shares authorized |
|
|
|
|
$3,906,425,001
÷ 3,906,378,202 shares outstanding, no par value, unlimited shares authorized |
|
|
|
|
$2,819,261,495
÷ 2,819,224,036 shares outstanding, no par value, unlimited shares authorized |
|
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Statement
of Operations
Year Ended July 31,
2026
|
|
|
|
|
|
|
|
|
Investment
adviser fee (Note 5)
|
|
Administrative
fee (Note 5)
|
|
|
|
|
Transfer
agent fees (Note 2) |
|
Directors’/Trustees’
fees (Note 5)
|
|
|
|
|
|
|
|
Other
service fees (Notes 2 and 5) |
|
Portfolio
accounting fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
Waiver,
Reimbursement and Reduction: |
|
Waiver
of investment adviser fee (Note 5)
|
|
Reimbursement
of other operating expenses (Notes 2 and 5) |
|
Reduction
of custodian fees (Note 6)
|
|
TOTAL
WAIVER, REIMBURSEMENT AND REDUCTION |
|
|
|
|
|
|
|
Net
realized gain on investments |
|
Change
in net assets resulting from operations |
|
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Statement
of Changes in Net Assets
|
|
|
|
Increase
(Decrease) in Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGE
IN NET ASSETS RESULTING FROM OPERATIONS |
|
|
Distributions
to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGE
IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS |
|
|
|
|
|
|
Proceeds
from sale of shares |
|
|
Net
asset value of shares issued to shareholders in payment of distributions declared |
|
|
|
|
|
|
CHANGE
IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes which are an integral part of
the Financial Statements
Annual
Financial Statements and Additional Information
Notes to
Financial Statements
Federated Hermes Money Market Obligations
Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the
“Act”), as an open-end management investment company. The Trust consists of 15 portfolios. The financial statements included
herein are only those of Federated Hermes Government Obligations
Tax-Managed Fund (the “Fund”), a diversified portfolio. The financial
statements of the other portfolios are presented separately. The assets of each portfolio are segregated, and a shareholder’s interest
is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers three classes of shares: Automated
Shares, Institutional Shares and Service Shares. All shares of the Fund have equal rights with respect to voting, except on class
specific matters. The investment objective of the Fund is to provide current income consistent with stability of principal and
liquidity.
The Fund operates as
a government money market fund. As a government money market fund, the Fund: (1) invests at least 99.5% of its
total assets in: (i) cash; (ii) securities issued or guaranteed by the United States or certain U.S. government agencies or instrumentalities;
and/or (iii) repurchase agreements that are collateralized fully; and (2) generally continues to use amortized cost to value
its portfolio securities and transact at a stable $1.00 net asset value (NAV).
2. SIGNIFICANT
ACCOUNTING POLICIES
The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of its financial statements.
These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Securities
are valued at amortized cost. The amortized cost method of valuation generally prescribes that an investment is valued at its acquisition
cost as adjusted daily for amortization of premium or accretion of discount to the specified redemption value on the nearest call,
demand or maturity date, as appropriate. If amortized cost is determined not to approximate fair value, the value of the portfolio securities
will be determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the
fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share,
and the actual value obtained could be materially different.
Pursuant to Rule 2a-5
under the Act, the Fund’s Board of Trustees (the “Trustees”) has designated Federated Investment Management
Company (the “Adviser”) as the Fund’s valuation designee to perform any fair value determinations for securities and
other assets held by the Fund. The Adviser is subject to the Trustees’
oversight and certain reporting and other requirements intended to provide
the Trustees the information needed to oversee the Adviser’s fair value determinations.
The Adviser, acting through
its valuation committee (“Valuation Committee”), is responsible for determining the fair value of investments.
The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser’s affiliated companies and determines
fair value of securities and oversees the comparison of amortized cost to market-based value. The Valuation Committee is also
authorized to use pricing services to provide fair value evaluations of the current value of certain investments for purposes of monitoring
the relationship of market-based value and amortized cost. The Valuation Committee employs various methods for reviewing third-party
pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods
(including key inputs and assumptions), and review of price challenges by the Adviser based on recent market activity. In the event
that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value
of the investment in accordance with procedures adopted by the Adviser. The Trustees periodically review the fair valuations made by
the Valuation Committee. The Trustees have also approved the Adviser’s fair valuation and significant events procedures as part
of the Fund’s compliance program and will review any changes
made to the procedures.
Investment Income, Gains and Losses, Expenses and Distributions
Investment
transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an
identified-cost basis. Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date.
Distributions of net investment income, if any, are declared daily and paid monthly. In addition, distribution of capital gains, if any,
are declared and paid at least annually. Amortization/accretion
of premium and discount is included in investment income. Investment income,
realized gains and losses and certain fund-level expenses are allocated to each class based on relative average daily net assets, except
that select classes will bear certain expenses unique to those classes. The detail of the total fund expense waiver, reimbursement and
reduction of $2,630,722 is disclosed in this Note 2, Note 5 and Note 6. Dividends are declared separately for each class. No class has
preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
For
the year ended July 31, 2026, transfer agent fees for the Fund were as follows:
|
|
Transfer
Agent
Fees
Incurred |
Transfer
Agent
Fees
Reimbursed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual
Financial Statements and Additional Information
Other Service Fees
The
Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund’s Automated Shares, Institutional Shares
and Service Shares to unaffiliated financial intermediaries or
to Federated Shareholder Services Company (FSSC) for providing services to shareholders
and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse
the Fund for other service fees. In addition, unaffiliated third-party financial intermediaries may waive other service fees. This waiver
can be modified or terminated at any time. For the year ended July 31, 2026, other service fees for the Fund were as follows:
|
|
Other
Service
Fees
Incurred |
|
|
|
|
|
|
|
|
|
For the year ended July 31, 2026, the Fund’s
Institutional Shares did not incur other service fees; however, it may begin to incur this fee upon
approval of the Trustees.
It
is the Fund’s policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986 and to distribute to shareholders
each year substantially all of its income. Accordingly, no provision
for federal income tax is necessary. As of and during the year ended July
31, 2026, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related
to tax liabilities as income tax expense in the Statement of Operations.
As of July 31, 2026, tax years 2023 through 2026 remain subject to
examination by the Fund’s major tax jurisdictions, which include the United States of America and the Commonwealth of
Massachusetts.
When-Issued and Delayed-Delivery Transactions
The
Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains
security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased
on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses
may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the
contract.
The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the
amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ materially from
those estimated. The Fund applies investment company accounting
and reporting guidance.
3. SHARES
OF BENEFICIAL INTEREST
The following tables summarize share activity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
issued to shareholders in payment of distributions declared |
|
|
|
|
|
|
|
|
|
|
NET
CHANGE RESULTING FROM AUTOMATED SHARE TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
issued to shareholders in payment of distributions declared |
|
|
|
|
|
|
|
|
|
|
NET
CHANGE RESULTING FROM INSTITUTIONAL
SHARE
TRANSACTIONS |
|
|
|
|
Annual
Financial Statements and Additional Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
issued to shareholders in payment of distributions declared |
|
|
|
|
|
|
|
|
|
|
NET
CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS |
|
|
|
|
NET
CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS |
|
|
|
|
4. FEDERAL
TAX INFORMATION
The tax character of distributions as reported
on the Statement of Changes in Net Assets for the years ended July 31, 2026 and 2025,
was as follows:
|
|
For
tax purposes, short-term capital gains distributions are considered ordinary income distributions. |
As of July 31, 2026, the components of distributable
earnings on a tax-basis were as follows:
Undistributed
ordinary income1
|
|
|
|
For
tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings. |
5. INVESTMENT
ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The
advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.15% of the Fund’s average daily net assets.
Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or
reimburse certain operating expenses of the Fund for competitive reasons such as to maintain the Fund’s expense ratio, or as and
when appropriate, to maintain positive or zero net yields. For
the year ended July 31, 2026, the Adviser voluntarily waived $2,620,329 of its
fee and reimbursed $3,466 of transfer agent fees.
Federated
Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and
services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated
Hermes Funds subject to a fee under the Administrative Services
Agreement. The fee paid to FAS is based on the average daily net assets
of the Investment Complex as specified below:
|
|
Average
Daily Net Assets
of
the Investment Complex |
|
|
on
assets up to $50 billion |
|
|
on
assets over $50 billion |
Subject to the terms described in the Expense
Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the year ended
July 31, 2026, the annualized fee paid to FAS was 0.077% of average daily net assets of the Fund.
In addition, FAS may charge certain out-of-pocket
expenses to the Fund.
Due
to the possibility of changes in market conditions and other factors, there can be no assurance that the level of waiver/reimbursement/reduction
of Fund expenses reflected in the financial highlights will be maintained in the future. However, the Adviser and
certain of its affiliates (which may include FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective
fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense,
extraordinary expenses and proxy-related expenses, if any) paid by the Fund’s Automated Shares, Institutional Shares and Service
Shares (after the voluntary waivers and reimbursements) will not exceed 0.55%, 0.20% and 0.45% (the “Fee Limit”), respectively,
up to but not including the later of (the “Termination Date”):
(a) October 1, 2027; or (b) the date of the Fund’s next effective Prospectus. While
the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination
Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the approval
of the Trustees.
Annual
Financial Statements and Additional Information
Other Service Fees
For
the year ended July 31, 2026, FSSC received $8,999 of other service fees disclosed in Note 2.
Directors’/Trustees’ and Miscellaneous Fees
Certain
Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate
payment, Independent Directors’/Trustees’ fees and
certain expenses related to conducting meetings of the Directors/Trustees and other
miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related
to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous
Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
Through arrangements with the Fund’s
custodian, net credits realized as a result of uninvested cash balances were used to offset custody expenses.
For the year ended July 31, 2026, the Fund’s expenses were offset by $6,927 under these arrangements.
The Fund may place its cash on deposit with
financial institutions in the United States, which is insured by the Federal Deposit Insurance Corporation
(FDIC) up to $250,000. The Fund’s credit risk in the event of failure of these financial institutions is represented by the difference
between the FDIC limit and the total amounts on deposit. The Fund from time to time may have amounts on deposit in excess of
the insured limits.
Pursuant to an Exemptive Order issued by
the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries
of Federated Hermes, Inc., may participate in an interfund lending program. This program provides an alternative credit facility
allowing the Fund to borrow from other participating affiliated funds. As of July 31, 2026, there were no outstanding loans. During
the year ended July 31, 2026, the program was not utilized.
An operating segment is defined as a component
of a public entity that engages in business activities from which it may recognize revenues
and incur expenses, has operating results that are regularly reviewed by the public entity’s chief operating decision maker (CODM)
to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information
available. A management committee of the Adviser acts as the CODM. The Fund represents a single operating segment, as the
CODM monitors the operating results of the Fund as a whole and the strategic asset allocation is determined based on the investment
objective of the Fund and executed by the Fund’s portfolio management team. The financial information in the form of the Fund’s
portfolio composition, total returns, expense ratios and changes in net assets (i.e., changes in net assets resulting from operations,
subscriptions and redemptions) which is reviewed by the CODM to assess the Fund’s performance in comparison to the Fund’s
benchmarks and to make resource allocation decisions for the Fund’s single segment is consistent with the information presented
in these financial statements. Segment assets are reflected on
the accompanying Statement of Assets and Liabilities as “total assets” and significant
segment expenses are listed on the accompanying Statement of Operations.
Under the Fund’s organizational documents,
its Officers and Directors/Trustees are indemnified against certain liabilities arising out of the
performance of their duties to the Fund (other than liabilities arising out of their willful misfeasance, bad faith, gross negligence
or reckless disregard of their duties to the Fund). In addition,
in the normal course of business, the Fund provides certain indemnifications under
arrangements with third parties. Typically, obligations to indemnify a third party arise in the context of an arrangement entered into
by the Fund under which the Fund agrees to indemnify such third party for certain liabilities arising out of actions taken pursuant to
the arrangement, provided the third party’s actions are
not deemed to have breached an agreed-upon standard of care (such as willful misfeasance,
bad faith, gross negligence or reckless disregard of their duties under the contract). The Fund’s maximum exposure under these
arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet arisen. The Fund
does not anticipate any material claims or losses pursuant to these arrangements at this time, and accordingly expects the risk of loss
to be remote.
11. FEDERAL
TAX INFORMATION (UNAUDITED)
For the year ended July 31, 2026, 100% of
the dividends paid by the Fund are interest related dividends as provided by the American Jobs
Creation Act of 2004.
For the fiscal year ended
July 31, 2026, 99.9% of total ordinary income distributions qualified as business interest income for purposes of
163(j) of the Code and the regulations thereunder.
Annual
Financial Statements and Additional Information
Report of
Independent Registered Public Accounting Firm
To the Shareholders of Federated
Hermes Government Obligations Tax-Managed Fund and the Board
of Trustees of Federated Hermes Money Market Obligations Trust:
Opinion on the Financial Statements
We have audited the accompanying
statement of assets and liabilities of Federated Hermes Government Obligations Tax-Managed
Fund (the Fund), a portfolio of Federated Hermes Money Market Obligations Trust, including the portfolio of investments,
as of July 31, 2026, the related statement of operations for the year then ended, the statements of changes in net
assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements)
and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial
statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of July
31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year
period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity
with U.S. generally accepted accounting principles.
These financial statements and
financial highlights are the responsibility of the Fund’s management. Our responsibility is to
express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting
firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required
to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules
and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance
with the standards of the PCAOB. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material
misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material
misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of
securities owned as of July 31, 2026, by correspondence with the custodian and brokers; when replies were not received from
brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the financial statements and
financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor
of one or more Federated Hermes’ investment companies since 2006.
Boston, Massachusetts
September 23, 2026
Annual
Financial Statements and Additional Information
Evaluation
and Approval of Advisory Contract–May
2026
Federated Hermes Government
Obligations Tax-Managed Fund (the “Fund”)
At its meetings in May 2026 (the
“May Meetings”), the Fund’s Board of Trustees (the “Board”), including those Trustees who
are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940, as amended (the
“Independent Trustees”), reviewed and unanimously approved the continuation of the investment advisory contract between
the Fund and Federated Investment Management Company (the “Adviser”) (the “Contract”) for an additional one-year
term. The Board’s determination to approve the continuation of the Contract reflects the exercise of its business judgment
after considering such information deemed necessary to evaluate the terms of the Contract and to approve the continuation
of the existing arrangement. The information, factors and conclusions that formed the basis for the Board’s approval
are summarized below.
Information Received
and Review Process
At the request
of the Independent Trustees, the Fund’s Chief Compliance Officer (the “CCO”) furnished to the Board in advance
of its May Meetings an independent written report regarding data related to the Fund’s management fee (the
“CCO Management Fee Report”). The Board considered the CCO Management Fee Report, along with other information,
in evaluating the reasonableness of the Fund’s management fee and in determining to approve the continuation
of the Contract.
In addition
to the CCO Management Fee Report, the Board considered information specifically prepared in connection with
the approval of the continuation of the Contract that was presented at the May Meetings. In this regard, in the months preceding
the May Meetings, the Board requested and reviewed written responses and supporting materials prepared by the
Adviser and its affiliates (collectively, “Federated Hermes”) in response to requests posed to Federated Hermes by independent
legal counsel on behalf of the Independent Trustees encompassing a wide variety of topics, including those summarized
below. The Board also considered such additional matters as the Independent Trustees deemed reasonably necessary
to evaluate the Contract, which included detailed information about the Fund and Federated Hermes furnished to the
Board at its meetings throughout the year.
The Board’s
consideration of the Contract included review of materials and information covering the following matters, among
others: (1) a copy of the Contract; (2) the nature, quality and extent of the advisory and other services provided to the
Fund by Federated Hermes; (3) Federated Hermes’ business and operations; (4) the Adviser’s investment philosophy, personnel
and processes; (5) the Fund’s investment objective and strategies; (6) the Fund’s short-term and long-term performance
- in absolute terms (both on a gross basis and net of expenses) and relative to an appropriate group of peer funds
and its benchmark; (7) the Fund’s fees and expenses, including the advisory fee and the overall expense structure of the
Fund - in absolute terms and relative to an appropriate group of peer funds, with due regard for contractual or voluntary
expense limitations (if any); (8) the financial condition of Federated Hermes; (9) the Adviser’s profitability with respect
to managing the Fund; (10) distribution and sales activity for the Fund; and (11) the use and allocation of brokerage
commissions derived from trading the Fund’s portfolio securities (if any).
The Board
also considered judicial decisions concerning allegedly excessive investment advisory fees charged to other registered
funds in evaluating the Contract. Using these judicial decisions as a guide, the Board considered several factors it
deemed relevant to an adviser’s fiduciary duty with respect to its receipt of compensation from a fund, including: (1) the nature
and quality of the services provided by the adviser to the fund and its shareholders, including the performance of the
fund, its benchmark and comparable funds; (2) the adviser’s cost of providing the services and the profitability to the adviser
of providing advisory services to the fund; (3) the extent to which the adviser may realize “economies of scale” as the
fund grows larger and, if such economies of scale exist, whether they have been appropriately shared with the fund and its
shareholders or the family of funds; (4) any “fall-out” benefits that accrue to the adviser because of its relationship with
the fund, including research services received from
brokers that execute fund trades and any fees paid to affiliates of the adviser
for services rendered to the fund; (5) comparative fees and expenses, including a comparison of management fees paid
to the adviser with those paid by similar funds managed by the same adviser or other advisers as well as management fees
charged to institutional and other advisory clients of the same adviser for what might be viewed as like services; and (6)
the extent of care, conscientiousness and independence with which the fund’s board members perform their duties and their
expertise, including whether they are fully informed about all facts the board deems relevant to its consideration of the
adviser’s services and fees. The Board considered that the Securities and Exchange Commission (“SEC”) disclosure requirements
regarding the basis for a fund board’s approval of the fund’s investment advisory contract generally align with
the factors listed above. The Board was guided by these factors in its evaluation of the Contract to the extent it considered
them to be appropriate and relevant, as discussed further below. The Board considered and weighed these factors
in light of its substantial accumulated experience in governing the Fund and working with Federated Hermes on matters
relating to the oversight of the other funds advised by Federated Hermes (each, a “Federated Hermes Fund” and, collectively,
the “Federated Hermes Funds”).
Annual
Financial Statements and Additional Information
In
addition, the Board considered the preferences and expectations of Fund shareholders and the potential disruptions of the
Fund’s operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate
or not renew the Contract. In particular, the Board recognized that many shareholders likely have invested in the Fund
based on the strength of Federated Hermes’ industry standing and reputation and with the expectation that Federated Hermes
will have a continuing role in providing advisory services to the Fund. Thus, the Board observed that there are a range
of investment options available to the Fund’s shareholders in the marketplace, and such shareholders, having had the opportunity
to consider other investment options, have effectively selected Federated Hermes by virtue of investing in the
Fund.
In determining
to approve the continuation of the Contract, the members of the Board reviewed and evaluated information
and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment.
While individual members of the Board may have weighed certain factors differently, the Board’s determination
to approve the continuation of the Contract was based on a comprehensive consideration of all information provided
to the Board throughout the year. The Board recognized that its evaluation process is evolutionary and that the factors
considered and the emphasis placed on relevant factors may change in recognition of changing circumstances in the
registered fund marketplace. The Independent Trustees were assisted throughout the evaluation process by independent legal
counsel. In connection with their deliberations at the May Meetings, the Independent Trustees met separately in executive
session with their independent legal counsel and without management present to review the relevant materials and
consider their responsibilities under applicable laws. In addition, senior management representatives of Federated Hermes
also met with the Independent Trustees and their independent legal counsel to discuss the materials and presentations
furnished to the Board at the May Meetings. The Board considered the approval of the Contract for the Fund as
part of its consideration of agreements for funds across the family of Federated Hermes Funds, but its approvals were made
on a fund-by-fund basis.
Nature, Extent and
Quality of Services
The Board
considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources
of Federated Hermes dedicated to the Fund. In this regard, the Board evaluated, among other things, the terms of the
Contract and the full range of services provided to the Fund by Federated Hermes. The Board considered the Adviser’s personnel,
investment philosophy and process, investment research capabilities and resources, trade operations capabilities,
experience and performance track record. The Board reviewed the qualifications, backgrounds and responsibilities
of the portfolio management team primarily responsible for the day-to-day management of the Fund and evaluated
Federated Hermes’ ability and experience in attracting and retaining qualified personnel to service the Fund. The Board
considered the trading operations by the Adviser, including the execution of portfolio transactions and the selection of
brokers for those transactions. In addition, the Board noted that the Fund is a money market mutual fund that operates in accordance
with the limitations set forth in Rule 2a-7 under the Investment Company Act of 1940, as amended. In this connection,
the Board considered the expertise of the Adviser in managing money market funds, its extensive experience with
the requirements of Rule 2a-7 and its commitment to managing the Fund in accordance with these requirements. The Board
also considered the Adviser’s ability to deliver competitive investment performance for the Fund when compared to the
Fund’s Performance Peer Group (as defined below), which was deemed by the Board to be a useful indicator of how the
Adviser is executing the Fund’s investment program.
In addition,
the Board considered the financial resources and overall reputation of Federated Hermes and its willingness to
consider and make investments in personnel, infrastructure, technology, cybersecurity, business continuity planning and operational
enhancements that are designed to benefit the Federated Hermes Funds. The Board considered the quality of Federated
Hermes’ communications with the Board and responsiveness to Board inquiries and requests made from time to time
with respect to the Federated Hermes Funds. The Board also considered that Federated Hermes is responsible for providing
the Federated Hermes Funds’ officers.
The Board
received and evaluated information regarding Federated Hermes’ regulatory and compliance environment. The
Board considered Federated Hermes’ compliance program and compliance history and reports from the CCO about Federated
Hermes’ compliance with applicable laws and regulations, including responses to regulatory developments and any
compliance or other issues raised by regulatory agencies. The Board also noted Federated Hermes’ support of the Federated
Hermes Funds’ compliance control structure and the compliance-related resources devoted by Federated Hermes
in support of the Fund’s obligations pursuant to Rule 38a-1 under the Investment Company Act of 1940, as amended,
including Federated Hermes’ commitment to respond to rulemaking and other regulatory initiatives of the SEC. The
Board considered Federated Hermes’ approach to internal audits and risk management with respect to the Federated Hermes
Funds and its day-to-day oversight of the Federated Hermes Funds’ compliance with their investment objectives and
policies as well as with applicable laws and regulations, noting that regulatory and other developments had over time
Annual
Financial Statements and Additional Information
led, and
continue to lead, to an increase in the scope of Federated Hermes’ oversight in this regard. In addition, the Board noted
Federated Hermes’ commitment to maintaining high quality systems and expending substantial resources to prepare for
and respond to ongoing changes due to the market, regulatory and control environments in which the Fund and its service
providers operate.
The Board
considered Federated Hermes’ efforts to provide shareholders in the Federated Hermes Funds with a comprehensive
array of funds with different investment objectives, policies and strategies. The Board considered the expenses
that Federated Hermes had incurred, as well as the entrepreneurial and other risks assumed by Federated Hermes, in
sponsoring and providing on-going services to new funds to expand these opportunities for shareholders. The Board noted
the benefits to shareholders of being part of the family of Federated Hermes Funds, which include the general right to
exchange investments between the same class of shares without the incurrence of additional sales charges.
Based on
these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services
provided by the Adviser to the Fund.
Fund Investment Performance
The Board
considered the investment performance of the Fund. In evaluating the Fund’s investment performance, the Board
considered performance results in light of the Fund’s investment objective, strategies and risks. The Board considered
detailed investment reports on, and the Adviser’s analysis of, the Fund’s performance over different time periods
that were provided to the Board throughout the year and in connection with the May Meetings. These reports included,
among other items, information on the Fund’s gross and net returns, the Fund’s investment performance compared
to one or more relevant categories or groups of peer funds and the Fund’s benchmark, performance attribution information
and commentary on the effect of market conditions. The Board noted that it evaluated investment performance at
meetings throughout the year and received reports from Federated Hermes regarding the performance of certain Federated
Hermes Funds as well as Federated Hermes’ explanations for less favorable performance and any specific actions
Federated Hermes had taken, or had determined to take, to seek to enhance Fund investment performance and the results
of those actions.
The Board
also reviewed comparative information regarding the performance of other registered funds in the category of
peer funds selected by iMoneyNet, an independent fund ranking organization (the “Performance Peer Group”). The Board
noted the CCO’s statement that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating
the performance of the Adviser in managing the Fund.
The Board
also considered comparative performance data from Lipper, Inc. that was included in reports provided to the Board
throughout the year.
The Board
considered that for the one-year period ended December 31, 2025, the Fund’s performance was above the median
of the Performance Peer Group. The Board also considered the relatively tight dispersion of performance data with respect
to the Fund and its Performance Peer Group.
Based on
these considerations, the Board concluded that it had continued confidence in the Adviser’s overall capabilities
to manage the Fund.
The Board
considered the advisory fee and overall expense structure of the Fund and the comparative fee and expense information
that had been provided in connection with the May Meetings. In this regard, the Board was presented with, and
considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each
element of the Fund’s total expense ratio (i.e., gross and net advisory fees, administrative fees, custody fees, portfolio accounting
fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated Hermes from
the overall category of peer funds selected by iMoneyNet (the “Expense Peer Group”). The Board received a description
of the methodology used to select the Expense Peer Group from the overall iMoneyNet category. The Board also
reviewed comparative information regarding the fees and expenses of the broader group of funds in the overall iMoneyNet
category.
While mindful
that courts have cautioned against giving too much weight to comparative information concerning fees charged
to funds by other advisers, the Board found that the use of comparisons between the Fund and its Expense Peer Group
assisted the Board in its evaluation of the Fund’s fees and expenses. The Board focused on comparisons with other registered
funds more heavily than non-registered fund products or services because such comparisons are believed to be more
relevant. The Board considered that other registered funds are the products most like the Fund, in that they are readily
available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle, in fact,
chosen and maintained by the Fund’s shareholders. The Board noted that the range of such other registered funds’ fees
and expenses, therefore, appears to be a relevant indicator of what investors have found to be reasonable in the marketplace
in which the Fund competes.
Annual
Financial Statements and Additional Information
The
Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position
of the Fund’s fee rates relative to its Expense Peer Group. In this regard, the Board noted that the contractual advisory
fee rate was at the median of the Expense Peer Group, but the Board noted the applicable waivers and reimbursements,
and that the overall expense structure of the Fund remained competitive in the context of other factors considered
by the Board.
The Board
also received and considered information about the nature and extent of services offered and fees charged by Federated
Hermes to other types of clients with investment strategies similar to those of the Federated Hermes Funds, including
non-registered fund clients (such as institutional separate accounts) and third-party unaffiliated registered funds for
which the Adviser or its affiliates serve as sub-adviser. The Board noted the CCO’s statement that non-registered fund clients
are inherently different products due to the following differences, among others: (i) types of targeted investors; (ii)
applicable laws and regulations; (iii) legal structures; (iv) average account sizes; (v) portfolio management techniques made
necessary by different cash flows and different associated costs; (vi) the time spent by portfolio managers and their teams
(among other personnel across various departments, including legal, compliance and risk management) in reviewing securities
pricing; (vii) SEC mandated risk management programs with respect to fund liquidity and use of derivatives; (viii)
questions on regulatory reporting; (ix) a variety of different administrative responsibilities; and (x) degrees of risk associated
with management. The Board also considered information regarding the differences in the nature of the services required
for Federated Hermes to manage its proprietary registered fund business versus managing a discrete pool of assets as
a sub-adviser to another institution’s registered fund, noting the CCO’s statement that Federated Hermes generally performs
significant additional services and assumes substantially greater risks in managing the Fund and other Federated Hermes
Funds than in its role as sub-adviser to an unaffiliated third-party registered fund. The Board noted that the CCO emphasized
that differences in fees for providing advisory services to other types of clients may not be appropriate when judging
the appropriateness of the Federated Hermes Funds’ advisory fees because of the different services provided.
In the case
of the Fund, the Board noted that Federated Hermes does not manage any other types of clients that are comparable
to the Fund.
Based on
these considerations, the Board concluded that the fees and total operating expenses of the Fund, in conjunction
with other matters considered, are reasonable in light of the services provided.
The Board
received and considered profitability information furnished by Federated Hermes. Such profitability information
included revenues reported on a fund-by-fund basis and estimates of the allocation of expenses made on a fund-by-fund
basis, using allocation methodologies specified by the CCO and described to the Board. The Board considered
the CCO’s statement that, while the cost allocation report applies consistent allocation processes for purposes of
general comparison of funds, the inherent difficulties in arbitrarily allocating costs lack precision and may cause the report
to be unreliable because a single change in an allocation estimate can dramatically alter the resulting estimate of cost
and/or profitability of a Federated Hermes Fund and may produce unintended consequences. In addition, the Board considered
the CCO’s statement that the allocation methodologies used by Federated Hermes in estimating profitability for purposes
of reporting to the Board in connection with the continuation of the Contract are consistent with the methodologies
previously reviewed by an independent consultant. The Board noted that the independent consultant had previously
conducted a review of the allocation methodologies and reported to the Board that, although there is no single best
method to allocate expenses, the methodologies used by Federated Hermes are reasonable. The Board considered the CCO’s
statement that the estimated profitability to the Adviser from its relationship with the Fund was not unreasonable in relation
to the services provided.
The Board
also reviewed information compiled by Federated Hermes comparing its profitability information to other publicly-held
fund management companies, including information regarding profitability trends over time. The Board recognized
that profitability comparisons among fund management companies are difficult because of the variation in the type
of comparative information that is publicly available, and the profitability of any fund management company is affected
by numerous factors. The Board considered the CCO’s statement that, based on such profitability information, Federated
Hermes’ profit margins did not appear to be excessive and that Federated Hermes appeared financially sound, with
the resources available to fulfill its contractual obligations.
The Board
received and considered information about the notion of possible realization of “economies of scale” as a fund
grows larger, the difficulties of isolating and quantifying economies of scale at an individual fund level, and the extent
to which potential scale benefits are shared with shareholders. In this regard, the Board considered that Federated Hermes
has made significant and long-term investments in areas that support all of the Federated Hermes Funds, such as: portfolio
management, investment research and trading operations; shareholder services; compliance; business continuity, cybersecurity
and information security programs; internal audit and risk management functions; and technology, systems capabilities
and use of data. The Board noted that Federated Hermes’ investments in these areas are extensive and are
Annual
Financial Statements and Additional Information
designed
to provide enhanced or expanded services to the Federated Hermes Funds and their shareholders. The Board considered
that the benefits of these investments are likely to be shared with the family of Federated Hermes Funds as a whole.
In addition, the Board considered that fee waivers and expense reimbursements are another means for potential economies
of scale to be shared with shareholders and can provide protection from an increase in expenses if a Federated Hermes
Fund’s assets decline. The Board considered that, in order for the Federated Hermes Funds to remain competitive in
the marketplace, Federated Hermes has frequently waived fees and/or reimbursed expenses for the Federated Hermes Funds
and has disclosed to shareholders and/or reported to the Board its intention to do so (or continue to do so) in the future.
The Board also considered that Federated Hermes has been active in managing expenses of the Federated Hermes Funds
in recent years, which has resulted in benefits being realized by shareholders.
The Board
also received and considered information on adviser-paid fees (commonly referred to as “revenue sharing” payments)
that was provided to the Board throughout the year and in connection with the May Meetings. The Board considered
that Federated Hermes believes that this information is relevant to consider whether Federated Hermes had an incentive
to either not apply breakpoints, or to apply breakpoints at higher levels, but should not be considered when evaluating
the reasonableness of advisory fees. The Board also noted the absence of any applicable regulatory or industry guidelines
on economies of scale, which is compounded by the lack of any uniform methodology or pattern with respect to structuring
fund advisory fees with breakpoints that serve to reduce the fees as a fund attains a certain size.
The Board
considered information regarding the compensation and other ancillary (or “fall-out”) benefits that Federated Hermes
derived from its relationships with the Federated Hermes Funds. The Board considered that Federated Hermes may
derive a benefit to its reputation as an adviser to the Fund, which may help in attracting other clients and investment personnel.
The Board noted that, in addition to receiving advisory fees under the Federated Hermes Funds’ investment advisory
contracts, Federated Hermes’ affiliates also receive fees for providing other services to the Federated Hermes Funds
under separate service contracts, including for serving as the Federated Hermes Funds’ administrator and distributor.
In this regard, the Board considered that Federated Hermes’ affiliates provide distribution and shareholder services
to the Federated Hermes Funds, for which they may be compensated through distribution and servicing fees paid pursuant
to Rule 12b-1 plans or otherwise. The Board also received and considered information detailing the benefits, if any,
that Federated Hermes may derive from its receipt of research services from brokers who execute portfolio trades for the
Federated Hermes Funds.
The Board
considered the CCO’s presentation and statements and the information accompanying the CCO Management Fee
Report. The Board recognized that its evaluation of the Federated Hermes Funds’ advisory and sub-advisory arrangements
is a continuing and ongoing process that is informed by the information that the Board requests and receives from
management throughout the course of the year.
On the basis
of the information and factors summarized above, among other information and factors deemed relevant by the
Board, and the evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the continuation
of the Contract. The Board based its determination to approve the Contract on the totality of the circumstances
and relevant factors and with a view of past and future long-term considerations. Not all of the factors and considerations
identified above were necessarily deemed to be relevant to the Fund, nor did the Board consider any one of them
to be determinative.
Annual
Financial Statements and Additional Information
You could lose money
by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support
to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
This information is authorized
for distribution to prospective investors only when preceded or accompanied by the Fund’s Prospectus,
which contains facts concerning its objective and policies, management fees, expenses and other information.
Federated Hermes Government Obligations
Tax-Managed Fund
Federated Hermes Funds
4000
Ericsson Drive
Warrendale, PA 15086-7561
Contact us at
FederatedHermes.com/us
or
call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 608919494
CUSIP
60934N856
CUSIP 60934N849
©
2026 Federated Hermes, Inc.
|
Item 8. |
Changes in and Disagreements with Accountants for Open-End Management Investment Companies |
Federated Hermes Capital Reserves Fund: Not Applicable.
Federated Hermes Government Reserves Fund: Not Applicable.
Federated Hermes Government Obligations Tax-Managed Fund:
Not Applicable.
|
Item 9. |
Proxy Disclosures for Open-End Management Investment Companies. |
Federated Hermes Capital Reserves Fund: Not Applicable.
Federated Hermes Government Reserves Fund: Not Applicable.
Federated Hermes Government Obligations Tax-Managed Fund:
Not Applicable.
|
Item 10. |
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. |
Federated Hermes Capital Reserves Fund: The Fund’s
disclosure of remuneration items is included as part of the Financial Statements filed under Item 7 of this form.
Federated Hermes Government Reserves Fund: The Fund’s
disclosure of remuneration items is included as part of the Financial Statements filed under Item 7 of this form.
Federated Hermes Government Obligations Tax-Managed Fund:
The Fund’s disclosure of remuneration items is included as part of the Financial Statements filed under Item 7 of this form.
|
Item 11. |
Statement Regarding Basis for Approval of Investment Advisory Contract. |
Federated Hermes Capital Reserves Fund: The Fund’s
Evaluation and Approval of Advisory Contract summary by fund appear in the Financial Statements filed under Item 7 of this form.
Federated Hermes Government Reserves Fund: The Fund’s
Evaluation and Approval of Advisory Contract summary by fund appear in the Financial Statements filed under Item 7 of this form.
Federated Hermes Government Obligations Tax-Managed Fund:
The Fund’s Evaluation and Approval of Advisory Contract summary by fund appear in the Financial Statements filed under Item 7 of
this form.
|
Item 12. |
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
|
Item 13. |
Portfolio Managers of Closed-End Management Investment Companies. |
Not Applicable
|
Item 14. |
Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not Applicable
|
Item 15. |
Submission of Matters to a Vote of Security Holders. |
No Changes to Report
|
Item 16. |
Controls and Procedures. |
(a) The registrant’s Principal Executive Officer and
Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2)
under the Act, based on their evaluation of these disclosure controls and procedures as of a date within 90 days of the filing date of
this report on Form N-CSR.
(b) There were no changes in the registrant’s internal
control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the period covered by this report that have materially
affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
|
Item 17. |
Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not Applicable
|
Item 18. |
Recovery of Erroneously Awarded Compensation |
(a) Not Applicable
(b) Not Applicable
(a)(1) Not Applicable.
(a)(2) Not Applicable.
(a)(3) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(4) Not Applicable.
(a)(5) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant
to
the
requirements
of
the
Securities
Exchange
Act
of
1934
and
the
Investment
Company
Act
of
1940,
the
registrant
has
duly
caused
this
report
to
be
signed
on
its
behalf
by
the
undersigned,
thereunto
duly
authorized.
Registrant:
Federated
Hermes
Money
Market
Obligations
Trust
By:
/s/
Jeremy
D.
Boughton
Jeremy
D.
Boughton,
Principal
Financial
Officer
Date:
September
23,
2026
Pursuant
to
the
requirements
of
the
Securities
Exchange
Act
of
1934
and
the
Investment
Company
Act
of
1940,
this
report
has
been
signed
below
by
the
following
persons
on
behalf
of
the
registrant
and
in
the
capacities
and
on
the
dates
indicated.
By:
/s/
J.
Christopher
Donahue
J.
Christopher
Donahue,
Principal
Executive
Officer
Date:
September
23,
2026
By:
/s/
Jeremy
D.
Boughton
Jeremy
D.
Boughton,
Principal
Financial
Officer
Date:
September
23,
2026
