Federated Hermes Government Ultrashort Fund
Actively managed U.S. bond fund
As of its 2026 Q2 report, Federated Hermes Government Ultrashort Fund held 266 positions with $2.33B in net assets. Its ten largest holdings made up 42.8% of the fund. The FGUAX share class costs 0.41% a year. Over the 12 months to May 2026, FGUAX returned 4.6%, with dividends reinvested. In 2026 Q2 it added 21 new positions and exited 12.
The Funds investment objective is current income.
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.
What you own
| Company | Weight | Value | Shares |
|---|---|---|---|
JPMorgan Chase Bank NA | 8.59% | $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 Association 4.33% floating · due 2056-01-20 | 2.95% | $68.70M | — |
FHLMC Multifamily Structured Pass Through Certs. 4.31% floating · due 2033-04-25 | 1.86% | $43.21M | — |
Freddie Mac 5.00% · due 2055-09-01 | 1.81% | $42.14M | — |
Freddie Mac 4.71% floating · due 2055-08-25 | 1.78% | $41.50M | — |
FHLMC Multifamily Structured Pass Through Certs. 4.21% floating · due 2035-01-25 | 1.65% | $38.47M | — |
FHLMC Multifamily Structured Pass Through Certs. 4.15% floating · due 2035-11-25 | 1.64% | $38.18M | — |
The 200 largest of 266 holdings, with the share counts as filed, open with a free account.
What the fund is made of
Percentages are of fund net assets. Rounding, liabilities and short positions can make totals differ from 100%.
| Securitized | 59.60% |
| Cash & short-term | 31.90% |
| Bonds | 9.07% |
How it has done
FGUAX share class · total returns with dividends reinvested
Volatility over the last 12 months: 0.49%. Past returns are a record, not a forecast.
The 4 share classes hold the same portfolio
| Share class | Expense ratio | 1 year | 3 years | 5 years | Worst fall |
|---|---|---|---|---|---|
| 0.41% | +4.62% | +15.73% | +18.14% | 0.00% | |
| 0.36% | +4.77% | +16.00% | +18.52% | 0.00% | |
| 0.26% | +4.87% | +16.37% | +19.02% | 0.00% | |
| 0.24% | +4.79% | +16.21% | +19.13% | 0.00% |
These classes hold the same portfolio, so the 0.99pp spread over 5 years is the cost difference between them — roughly 0.20pp a year — not a difference in what they own.
Fees & fund details
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
- Expense ratio, by class
- 0.24% – 0.41%· FGUAX 0.41%
- Portfolio turnover
- 22.00% a year · as of 2025 Q3
Net is what a holder pays after the adviser's contractual waiver; gross is before it. A waiver can expire.
Turnover is how much of the portfolio was replaced in a year.
Classified from what the fund holds, not from its name · 2026 Q2. The summary is a paraphrase of the prospectus; the objective is verbatim.
What changed this quarter
Positions that entered or left the fund since its previous filing. Positions that were only resized are not listed.
21 new· the largest 4
12 exited· the largest 4
Debt profile
What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-05-31
Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.
| Floating rate | 71.9% |
| Fixed rate | 18.0% |
| Zero-coupon or unclassified | 10.0% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 12.5% |
| 1-3y | 0.7% |
| 3-5y | 1.1% |
| 5-10y | 18.5% |
| 10y+ | 67.2% |
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.
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.
| Credit spreads | 58% |
| Interest rates | 42% |
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.
Share of the fund's spread duration carried by each credit tier.
| High yield | +0.83 yr |
| Investment grade | +0.01 yr |
Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.
| 3 mo | 0.06 yr | 10% |
| 1 yr | 0.12 yr | 20% |
| 5 yr | 0.22 yr | 35% |
| 10 yr | 0.15 yr | 25% |
| 30 yr | 0.06 yr | 10% |
| 3 mo | 0.00 yr | 0% |
| 1 yr | 0.08 yr | 9% |
| 5 yr | 0.51 yr | 61% |
| 10 yr | 0.24 yr | 29% |
| 30 yr | 0.01 yr | 1% |
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
| Tenor | Rate yrs | IG yrs | HY yrs | IG $/bp | HY $/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.
Understand how this fund fits with the rest.
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