Shareholder Report
Aug. 31, 2026
USD ($)
Holding
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Class R6 Shares | $57 | 0.56% |
Management's Discussion of Fund Performance
The following discussion compares the performance of the Fund to the ICE BofA Global High Yield Constrained USD Hedged Index (the “Index”) to show how the Fund’s performance compares to the returns of similar investments for the reporting period. See the Average Annual Total Returns table below for the returns of the Fund and related indexes, including the Bloomberg Global Aggregate Index, a required broad-based index which represents the overall global investment-grade debt market. The Fund seeks to provide current income and long-term capital appreciation alongside positive societal impact.
Top Contributors to Performance
-
From a sector perspective, the Fund’s overweight positioning in the Basic Industry, Banking and Utility sectors were top contributors to its performance relative to the Index.
-
From an issuer perspective, the Fund’s lack of exposure to Optimum Comms (Media), along with an overweight allocation to Solenis (Basic Industry) and Orsted (Utilities) contributed the most to relative performance.
-
From a regional perspective, the Fund’s overweight allocations to Western Europe, the UK and the Pacific were primary contributors to relative Fund performance.
-
From a ratings perspective, the Fund’s overweight positioning in BBB-rated securities contributed the most to relative returns.
Top Detractors from Performance
-
From a sector perspective, the Fund’s underweight positioning in Energy, Financial Services and Leisure detracted the most from relative Fund performance.
-
From an issuer perspective, the Fund’s lack of exposure to Pemex (Energy) and EchoStar Corp (Telecommunications), along with an overweight allocation to Virgin Media (Telecoms) detracted the most from performance relative to the Index.
-
From a regional perspective, the Fund’s underweight allocation to North America, Latin America and Asia detracted the most from relative performance.
-
From a ratings perspective, the Fund’s underweight positioning in B-rated securities detracted the most from relative returns.
Fund Performance
Keep in mind that the Fund’s past performance is not a predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Cumulative Performance: September 26, 2019 through August 31, 2026
Initial Investment of $10,000
| Average Annual Total Returns | |||
| 1 Year | 5 Years | Since Inception | |
| Class R6 Shares1 | 4.56% | 3.32% | 4.46% |
| Bloomberg Global Aggregate Index | 0.60% | -1.74% | -0.28% |
| ICE BofA Global High Yield Constrained USD Hedged Index | 5.15% | 3.94% | 4.75% |
| Lipper Global High Yield Funds Average | 4.18% | 3.38% | 4.04% |
|
1
|
The Fund’s Class R6 Shares commenced operations on June 11, 2021. For the periods prior to the commencement of operations of the Fund’s Class R6 Shares, the performance information shown is for the Fund’s Institutional Shares, which commenced operations on September 26, 2019. The performance of the Institutional Shares has not been adjusted to reflect the expenses of the Class R6 Shares, since the Class R6 Shares have a lower expense ratio than the Institutional Shares.
|
Visit FederatedHermes.com/FundInformation. and click on the link to your fund and share class for more recent performance information.
Key Fund Statistics
| Net Assets | $192,273,962 |
| Number of Investments | 303 |
| Portfolio Turnover | 23% |
| Total Advisory Fees Paid | $443,929 |
Fund Holdings
Top Sectors
(% of Net Assets)
(% of Net Assets)
Material Fund Changes
The following is a summary of material changes made to the Fund during the reporting period. For more complete and current information, you may review the Fund’s disclosure documents on its webpage at FederatedHermes.com/FundInformation or upon request at 1-800-341-7400, Option 4, or by contacting your financial advisor.
Effective June 30, 2026, the Fund’s non-fundamental 80% investment policy changed to the following: Under normal circumstances, the Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in fixed-income investments rated below investment grade which, in the Adviser’s view, also provide the potential for contributing to positive societal impact aligned to the United Nations Sustainable Development Goals.
Effective June 30, 2026, the Fund’s non-fundamental 80% investment policy changed to the following: Under normal circumstances, the Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in fixed-income investments rated below investment grade which, in the Adviser’s view, also provide the potential for contributing to positive societal impact aligned to the United Nations Sustainable Development Goals.
The following is a summary of material changes made to the Fund during the reporting period. For more complete and current information, you may review the Fund’s disclosure documents on its webpage at FederatedHermes.com/FundInformation or upon request at 1-800-341-7400, Option 4, or by contacting your financial advisor.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Institutional Shares | $62 | 0.61% |
Management's Discussion of Fund Performance
The following discussion compares the performance of the Fund to the ICE BofA Global High Yield Constrained USD Hedged Index (the “Index”) to show how the Fund’s performance compares to the returns of similar investments for the reporting period. See the Average Annual Total Returns table below for the returns of the Fund and related indexes, including the Bloomberg Global Aggregate Index, a required broad-based index which represents the overall global investment-grade debt market. The Fund seeks to provide current income and long-term capital appreciation alongside positive societal impact.
Top Contributors to Performance
-
From a sector perspective, the Fund’s overweight positioning in the Basic Industry, Banking and Utility sectors were top contributors to its performance relative to the Index.
-
From an issuer perspective, the Fund’s lack of exposure to Optimum Comms (Media), along with an overweight allocation to Solenis (Basic Industry) and Orsted (Utilities) contributed the most to relative performance.
-
From a regional perspective, the Fund’s overweight allocations to Western Europe, the UK and the Pacific were primary contributors to relative Fund performance.
-
From a ratings perspective, the Fund’s overweight positioning in BBB-rated securities contributed the most to relative returns.
Top Detractors from Performance
-
From a sector perspective, the Fund’s underweight positioning in Energy, Financial Services and Leisure detracted the most from relative Fund performance.
-
From an issuer perspective, the Fund’s lack of exposure to Pemex (Energy) and EchoStar Corp (Telecommunications), along with an overweight allocation to Virgin Media (Telecoms) detracted the most from performance relative to the Index.
-
From a regional perspective, the Fund’s underweight allocation to North America, Latin America and Asia detracted the most from relative performance.
-
From a ratings perspective, the Fund’s underweight positioning in B-rated securities detracted the most from relative returns.
Fund Performance
Keep in mind that the Fund’s past performance is not a predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Cumulative Performance: September 26, 2019 through August 31, 2026
Initial Investment of $10,000
| Average Annual Total Returns | |||
| 1 Year | 5 Years | Since Inception | |
| Institutional Shares1 | 4.51% | 3.26% | 4.42% |
| Bloomberg Global Aggregate Index | 0.60% | -1.74% | -0.28% |
| ICE BofA Global High Yield Constrained USD Hedged Index | 5.15% | 3.94% | 4.75% |
| Lipper Global High Yield Funds Average | 4.18% | 3.38% | 4.04% |
|
1
|
Commenced operations on September 26, 2019.
|
Visit FederatedHermes.com/FundInformation. and click on the link to your fund and share class for more recent performance information.
Key Fund Statistics
| Net Assets | $192,273,962 |
| Number of Investments | 303 |
| Portfolio Turnover | 23% |
| Total Advisory Fees Paid | $443,929 |
Fund Holdings
Top Sectors
(% of Net Assets)
(% of Net Assets)
Material Fund Changes
The following is a summary of material changes made to the Fund during the reporting period. For more complete and current information, you may review the Fund’s disclosure documents on its webpage at FederatedHermes.com/FundInformation or upon request at 1-800-341-7400, Option 4, or by contacting your financial advisor.
Effective June 30, 2026, the Fund’s non-fundamental 80% investment policy changed to the following: Under normal circumstances, the Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in fixed-income investments rated below investment grade which, in the Adviser’s view, also provide the potential for contributing to positive societal impact aligned to the United Nations Sustainable Development Goals.
Effective June 30, 2026, the Fund’s non-fundamental 80% investment policy changed to the following: Under normal circumstances, the Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in fixed-income investments rated below investment grade which, in the Adviser’s view, also provide the potential for contributing to positive societal impact aligned to the United Nations Sustainable Development Goals.
The following is a summary of material changes made to the Fund during the reporting period. For more complete and current information, you may review the Fund’s disclosure documents on its webpage at FederatedHermes.com/FundInformation or upon request at 1-800-341-7400, Option 4, or by contacting your financial advisor.