Investment objective & strategy
As of April 25, 2025 · prospectusObjective. The Funds investment objective is to pursue total return consistent with current income.
Strategy. The Funds overall strategy is to invest in a portfolio consisting primarily of U.S. Treasury securities, U.S. government agency securities (including mortgage-backed securities issued by U.S. government agencies or instrumentalities) and related derivative contracts. The Fund buys and sells portfolio securities based primarily on its market outlook and analysis of how securities may perform under different market conditions. The Fund evaluates its investment strategy by comparing the performance and composition of the Funds portfolio to the performance and composition of the Bloomberg U.S. Government Bond Index (BGB), an index composed of U.S. government and government agency securities with maturities of one year or more. Under normal market conditions, the Adviser currently limits the effective duration of the Funds portfolio to … The Funds overall strategy is to invest in a portfolio consisting primarily of U.S. Treasury securities, U.S. government agency securities (including mortgage-backed securities issued by U.S. government agencies or instrumentalities) and related derivative contracts. The Fund buys and sells portfolio securities based primarily on its market outlook and analysis of how securities may perform under different market conditions. The Fund evaluates its investment strategy by comparing the performance and composition of the Funds portfolio to the performance and composition of the Bloomberg U.S. Government Bond Index (BGB), an index composed of U.S. government and government agency securities with maturities of one year or more. Under normal market conditions, the Adviser currently limits the effective duration of the Funds portfolio to within 40% of the effective duration of the BGB. At times, the Advisers calculation of portfolio duration may result in variances outside this range. Duration is a measure of the price volatility of a fixed-income security as a result of changes in market rates of interest, based on the weighted average timing of the instruments expected fixed interest and principal payments. 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 certain government securities that have no explicit financial support but are regarded as having implied support because the federal government sponsors their activities and the Fund may engage in short sales of U.S. Treasury securities and futures contracts. Based on fundamental analysis, the Adviser will consider a variety of factors when making decisions to purchase or sell particular securities or derivative contracts. The Fund may, but is not required to, use derivative instruments, which are instruments that have a value based on another instrument, exchange rate or index, and may be used as substitutes for securities in which the Fund can invest, or to hedge against a potential loss in the underlying asset. There can be no assurance that the Funds use of derivative 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 will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in U.S. government investments. The Fund will notify shareholders at least 60 days in advance of any change in its investment policy to invest, under normal circumstances, less than 80% of its net assets (plus any borrowings for investment purposes) in U.S. government investments.
Top holdings
As of Feb. 28, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| US TREASURY N/B | — | $9.50M | 5.01% |
| US TREASURY N/B | — | $9.38M | 4.95% |
| US TREASURY N/B | — | $6.95M | 3.67% |
| US TREASURY N/B | — | $5.18M | 2.73% |
| US TREASURY N/B | — | $4.53M | 2.39% |
| Freddie Mac REMICS | — | $4.46M | 2.35% |
| Freddie Mac REMICS | — | $4.41M | 2.32% |
| US TREASURY N/B | — | $4.16M | 2.20% |
| Federated Hermes Government Obligations Tax-Managed Fund, Institutional Class | GOFXX | $4.09M | 2.16% |
| TENN VALLEY AUTH | — | $4.06M | 2.14% |
Portfolio moves
Nov 30, 2025 → Feb 28, 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 Fund For U.S. Government Securities II | 21% | 0.80% |
| VANGUARD SHORT-TERM TREASURY INDEX FUND · VSBSX, VSBIX, VGSH | 13% | 0.03% |
| U.S. Government Fund · NOUGX | 13% | 0.45% |
Advisers
| Firm | Role |
|---|---|
| Federated Advisory Services Company | Adviser |
| Federated Investment Management Company | Adviser |
Footnotes
- Expense ratio as of April 25, 2025, from the fund's prospectus.
- Net assets and holdings count as of February 28, 2026, from the fund's N-PORT filing.
- Total return for calendar year 2025, before tax and after fund expenses. Computed by compounding the twelve monthly total returns the fund reported in its SEC N-PORT filings for 2025 (the latest prospectus does not yet chart this year).
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