Federated Hermes Government Ultrashort Fund

Federated Hermes Institutional Trust · 4 share classes

Actively managed U.S. bond fund
One fund, 4 share classes:FGUAXFEUSXFGUSXFGULX
$2.33B NAV
266 positions · as of 2026-05-31 · filed 2026-07-27

Fund classification

Classified from what the fund holds · as of 2026 Q2

Federated Hermes Government Ultrashort Fund is an actively managed U.S. bond fund.

Asset class
Bonds
Region
United States
Management
Actively managed
Fund type
Open-end fund

Fund profile

As filed in the prospectus · 2025 Q3

The Funds investment objective is current income.

Strategy · summarised

The fund invests in U.S. government securities and government-sponsored enterprise mortgage-backed securities with a dollar-weighted average duration of one year or less, selecting securities based on relative yield and risk within comparable duration bands. The adviser adjusts portfolio duration based on its interest rate outlook. Because the fund's adviser makes active security selection decisions rather than tracking a fixed index, portfolio composition and performance may diverge from the six-month Treasury bill benchmark used to evaluate the strategy.

Expenses
0.24% 0.41%across 4 share classes
Share classGrossNet
FGUAX0.57%0.41%
FEUSX0.68%0.36%
FGUSX0.42%0.26%
FGULX0.38%0.24%

Net is what a holder pays after the adviser's contractual waiver; gross is before it. A waiver can expire.

Portfolio turnover 22.00% · as of 2025 Q3

Allocation

Asset groups · long / short shown separately, never netted · 2026 Q2

100.57%
of net assets
Securitized59.60%
Cash & short-term31.90%
Bonds9.07%

Latest quarter

What changed since the fund's previous filing

2026Q2 vs 2026Q1: 21 new12 exited

Largest new: JPMorgan Chase Bank NA, BMO Capital Markets Corp., FHLMC Multifamily Structured Pass Through Certs., United States Treasury ×5

Largest exited: Bank of Montreal, Fannie Mae, Freddie Mac, United States Treasury ×5

Return profile

Chart:

Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026

Share class1-year3-year5-yearVolWorst fall
+4.58%+15.62%+17.76%0.50%0.00%
+4.72%+15.90%+18.01%0.44%0.00%
+4.83%+16.28%+18.65%0.48%0.00%
+4.74%+16.22%+18.62%0.44%0.00%

These classes hold the same portfolio, so the 0.88pp spread over 5 years is the cost difference between them — roughly 0.18pp a year — not a difference in what they own.

Cumulative return· Jun 2023 – Apr 2026

May 2026 has been filed since the trailing figures were struck, so it is not in the table above or the curve — every figure here shares one cut-off, which is what makes them comparable with other funds.

Debt profile

What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-05-31

Avg coupon
4.14%
Avg maturity
20.77 yr
Coupon type

Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.

72%
floating
Floating rate71.9%
Fixed rate18.0%
Zero-coupon or unclassified10.0%
Maturity ladder

Share of the fund's debt value in each maturity band, shortest first.

<1y10y+
<1y12.5%
1-3y0.7%
3-5y1.1%
5-10y18.5%
10y+67.2%
Flagged holdings
Defaulted: none reported
In arrears: 0.11% · $1.69M · 3 positions
Paid in kind: none reported

These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.

Risk profile

Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2

More of this fund’s sensitivity sits in credit spreads than in interest rates — a rate rally that comes with a credit selloff works against it.

Interest-rate duration
0.62 yr
approx. move per 100bp
Credit-spread duration
0.84 yr
approx. move per 100bp
If rates and spreads both rise 100bp

Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.

≈ -1.5%
of value
Credit spreads58%
Interest rates42%

Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.

Credit risk by quality

Share of the fund's spread duration carried by each credit tier.

+0.84
yrs total
High yield+0.83 yr
Investment grade+0.01 yr
Where the risk sits on the curve

Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.

Interest rate0.62 yr total
3 mo30 yr
3 mo0.06 yr10%
1 yr0.12 yr20%
5 yr0.22 yr35%
10 yr0.15 yr25%
30 yr0.06 yr10%
Credit spread0.84 yr total
3 mo30 yr
3 mo0.00 yr0%
1 yr0.08 yr9%
5 yr0.51 yr61%
10 yr0.24 yr29%
30 yr0.01 yr1%

The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.

Show the numbers
TenorRate yrsIG yrsHY yrsIG $/bpHY $/bp
3 mo+0.06+0.00+0.00$439$512
1 yr+0.12+0.01+0.07$2.1k$16.0k
5 yr+0.22+0.00+0.51$248$118.8k
10 yr+0.15+0.00+0.24$0$56.8k
30 yr+0.06+0.00+0.01$0$1.7k

Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.

Holdings

By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page

Issuer%NAVValue
JPMorgan Chase Bank NA8.59%$200.00M
BMO Capital Markets Corp.8.59%$200.00M
BofA Securities, Inc.8.59%$200.00M
BofA Securities, Inc.5.32%$123.84M
Government National Mortgage Association4.33% floating · due 2056-01-202.95%$68.70M
FHLMC Multifamily Structured Pass Through Certs.4.31% floating · due 2033-04-251.86%$43.21M
Freddie Mac5.00% · due 2055-09-011.81%$42.14M
Freddie Mac4.71% floating · due 2055-08-251.78%$41.50M
FHLMC Multifamily Structured Pass Through Certs.4.21% floating · due 2035-01-251.65%$38.47M
FHLMC Multifamily Structured Pass Through Certs.4.15% floating · due 2035-11-251.64%$38.18M
Showing 10 of 266Sign in to see more

Top 10 positions are 42.78% of net assets, top 25 60.11%, across 15 issuers.

See more of this fund's book

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