Investment objective & strategy
As of June 24, 2025 · prospectusObjective. The Funds investment objective is to seek to provide current income.
Strategy. In pursuing its principal investment strategies, the Fund invests in a diversified portfolio of fixed-income securities consisting of U.S. government and privately issued mortgage-backed and asset-backed securities, corporate debt securities and U.S. Treasury and agency securities. In addition, at least 65% of the Funds securities must be rated A or higher (or, for short-term instruments, in one of the two highest rating categories) by a nationally recognized statistical rating organization (NRSRO). The Fund may invest up to 35% of its assets in noninvestment-grade, fixed-income securities. The Fund may also invest a portion of its portfolio in securities of issuers based outside of the United States. The Funds investment adviser (the Adviser) seeks to enhance the Funds performance by allocating relatively … In pursuing its principal investment strategies, the Fund invests in a diversified portfolio of fixed-income securities consisting of U.S. government and privately issued mortgage-backed and asset-backed securities, corporate debt securities and U.S. Treasury and agency securities. In addition, at least 65% of the Funds securities must be rated A or higher (or, for short-term instruments, in one of the two highest rating categories) by a nationally recognized statistical rating organization (NRSRO). The Fund may invest up to 35% of its assets in noninvestment-grade, fixed-income securities. The Fund may also invest a portion of its portfolio in securities of issuers based outside of the United States. The Funds investment adviser (the Adviser) seeks to enhance the Funds performance by allocating relatively more of its portfolio to the security type that the Adviser expects to offer the best balance between current income and risk. The Fund may invest in derivative contracts, in particular, futures contracts, option contracts and swap contracts and/or hybrid instruments, to implement elements of its investment strategy. For example, the Fund may use derivative contracts or hybrid instruments to increase or decrease the portfolios exposure to the investment(s) underlying the derivative contract or hybrid instrument. There can be no assurance that the Funds use of derivative contracts or hybrid instruments will work as intended. Derivative investments made by the Fund are included within the Funds 80% policy (as described below) and are calculated at market value. The Fund may invest its assets in securities of other investment companies, including affiliated money market funds and funds advised by the Adviser or its affiliates, as an efficient means of implementing its investment strategies and/or managing its uninvested cash. Although the value of the Funds Shares will fluctuate, the Adviser will seek to manage the magnitude of fluctuation by limiting the Funds dollar-weighted average duration within a range of one to three years and, in any event, to not more than three years. Duration measures the price sensitivity of a fixed-income security to changes in interest rates. Under normal market conditions, the Funds dollar-weighted average maturity is expected to be three years or less. Certain of the government securities in which the Fund invests are not backed by the full faith and credit of the U.S. government, such as those issued by the Federal Home Loan Mortgage Corporation (Freddie Mac), the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Bank System. These entities are, however, supported through federal subsidies, loans or other benefits. The Fund may also invest in government securities that are supported by the full faith and credit of the U.S. government, such as those issued by the Government National Mortgage Association (Ginnie Mae). Finally, the Fund may invest in government securities that have no explicit financial support, but which are regarded as having implied support because the federal government sponsors their activities. 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. The Fund will notify shareholders at least 60 days in advance of any change in its investment policy that would enable the Fund to invest, under normal circumstances, less than 80% of its net assets (plus any borrowings for investment purposes) in fixed-income investments.
Top holdings
As of April 30, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| FEDERATED CORE TR FEDERATED BANK LOAN CORE FUND | — | $69.86M | 3.78% |
| Federated Hermes Government Obligations Tax-Managed Fund, Institutional Class | GOFXX | $66.74M | 3.61% |
| FEDERATED CORE TR III FEDERATED PROJ+TRADE FIN CORE | — | $45.22M | 2.45% |
| US TREASURY N/B | — | $30.09M | 1.63% |
| US TREASURY N/B | — | $29.85M | 1.62% |
| FEDERATED CORE TR MUTUAL FUND | — | $17.56M | 0.95% |
| SDART 2024-4 D 5.32% 12-15-31 | — | $15.18M | 0.82% |
| US TREASURY N/B | — | $15.13M | 0.82% |
| US TREASURY N/B | — | $14.82M | 0.80% |
| SDART 2024-2 D | DRIVE | $13.37M | 0.72% |
Portfolio moves
Jan 31, 2026 → Apr 30, 2026How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| Federated Hermes Ultrashort Bond Fund · FULAX, FULIX, FULBX, FULLX | 44% | 0.36% |
| Federated Hermes Short-Intermediate Total Return Bond Fund · FGCSX, FGCIX, FGCAX, SRBRX | 10% | 0.37% |
| SHORT-TERM INVESTMENT-GRADE PORTFOLIO | 9% | 0.14% |
Advisers
| Firm | Role |
|---|---|
| Federated Advisory Services Company | Adviser |
| Federated Investment Management Company | Adviser |
Footnotes
- Expense ratio as of June 23, 2023, from the fund's prospectus.
- Net assets and holdings count as of April 30, 2026, from the fund's N-PORT filing.
- Total return for calendar year 2023, before tax and after fund expenses. Computed by compounding the twelve monthly total returns the fund reported in its SEC N-PORT filings for 2023 (the latest prospectus does not yet chart this year).
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