Federated Hermes, Inc. (NYSE: FHI) announced that shareholders of the Federated Hermes MDT Large Cap Growth ETF (NYSE: FLCG) have approved changing the fund from a diversified to a non-diversified company. This change, effective September 16, 2024, aims to provide greater long-term flexibility in executing the fund's investment objective, particularly when individual issuer weightings in the Russell 1000® Growth Index exceed diversification limits.
The fund, which seeks long-term capital appreciation by investing in large-cap U.S. companies with higher forecasted growth values, will maintain its active management approach. This change is not expected to substantially affect the fund's investment objective but will enable the adviser to continue using the fund's quantitative model more effectively.
Federated Hermes, Inc. (NYSE: FHI) announced that the Board of Trustees of Federated Hermes ETF Trust has approved a change in the fundamental policy for the Federated Hermes MDT Large Cap Growth ETF (NYSE: FLCG). The proposed change would shift the fund from a diversified to a non-diversified company, subject to shareholder approval. The record date for majority shareholder consent is set for Aug. 19, 2024, with determination on Aug. 23, 2024.
The change aims to provide greater flexibility in executing the fund's investment strategy, particularly when individual issuer weightings in the Russell 1000® Growth Index exceed diversification limits. If approved, the change is expected to be effective on Aug. 26, 2024. Federated Hermes, with $782.7 billion in assets under management as of June 30, 2024, is seeking this change to enhance long-term strategy execution without substantially affecting the fund's principal investment strategies.