Fund Evaluator:

Federated Hermes Capital Income F Overview

Federated Hermes Capital Income F (CAPFX) is an actively managed Allocation Moderately Conservative Allocation fund. Federated launched the fund in 1996.

The investment seeks current income and long-term growth of income; capital appreciation is a secondary objective. The fund pursues its investment objectives by investing primarily in both equity and fixed-income securities that have relatively high current income potential. The fund's investment adviser or sub-adviser ("Adviser") divides the fund's portfolio between equity and fixed-income investments by first allocating an amount to fixed-income investments sufficient to achieve a minimum income consistent with the fund's strategy of emphasizing relatively high current income potential.

About Federated Hermes Capital Income F (CAPFX)

There are 8 members of the management team with an average tenure of 5.00 years: Stephen Gutch (2023), Jerome Conner (2014), Michael Jura (2021), Damian McIntyre (2025), Steven Chiavarone (2023), Kathryn Glass (2025), Ihab Salib (2013), Liam O’Connell (2026). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Bloomberg US Universal TR USD index with a weighting of 100%. Federated Hermes Capital Income F has 320 securities in its portfolio. The top 10 holdings constitute 55.3% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Federated Hermes Capital Income F is part of the Allocation global asset class and is within the Allocation fund group. Federated Hermes Capital Income F has 17.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 39.1%. There is 1.5% allocated to foreign stock, and 5.5% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 51.6% (36.0% domestic bond, 15.6% foreign bond and 0.0% convertible bond). Federated Hermes Capital Income F has 1.4% of the portfolio in cash.

Assets Under Management

The fund has $75 million in total assets, which is below the $561 million average for the Moderately Conservative Allocation category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

CAPFX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Federated Hermes Capital Income F expense ratio is high compared to funds in the Moderately Conservative Allocation category. Federated Hermes Capital Income F has an expense ratio of 0.91%, which is 10% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Federated Hermes Capital Income F has a portfolio turnover rate of 27%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 43% for the Moderately Conservative Allocation category.

Recently, in the month of July 2026, Federated Hermes Capital Income F returned -0.1%, which earned it a grade of B, as the Moderately Conservative Allocation category had an average return of -0.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Federated Hermes Capital Income F has a trailing yield of 3.44%, which is above the 3.29% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Federated Hermes Capital Income F Grades

Year to date, the fund has returned 5.4%, 0.6 percentage points better than the category, which translates into a grade of B. The fund has returned 11.2% over the past year (grade of B), 10.7% over the past three years (grade of A) and 5.1% per year over the past five years (grade of B) and 6.1% per year over the past 10 years (grade of C).

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