Federated Hermes seeking shareholder approval related to the Federated Hermes MDT Large Cap Growth ETF

Core Viewpoint - Federated Hermes, Inc. announced a proposed change in the diversification policy of its Federated Hermes MDT Large Cap Growth ETF, shifting from a diversified to a non-diversified company, pending shareholder approval [1][2]. Group 1: Fund Policy Change - The Board of Trustees approved the change in fundamental policy regarding diversification, which requires majority shareholder consent [1]. - The record date for determining shareholder consent is set for August 19, 2024, with the decision expected on August 23, 2024 [1][2]. - The change is anticipated to be effective on August 26, 2024, if approved by written consent [2]. Group 2: Investment Strategy - The Fund aims to approximate exposure to companies in the Russell 1000® Growth Index, although it is not designed to track the Index's overall composition or returns [3]. - The diversification classification change is intended to provide greater long-term flexibility in executing the investment strategy, especially when individual issuer weightings exceed diversification limits under the Investment Company Act of 1940 [3]. - The fundamental policy change is not expected to significantly impact the Fund's principal investment strategies [3]. Group 3: Company Overview - Federated Hermes, Inc. is a global leader in active investment management, with $782.7 billion in assets under management as of June 30, 2024 [4]. - The company provides a range of investment solutions, including equity, fixed-income, alternative/private markets, multi-asset, and liquidity management strategies to over 10,000 institutions and intermediaries worldwide [4]. - Headquartered in Pittsburgh, Federated Hermes employs more than 2,000 people across various global offices [4].