Fund Evaluator:
Federated Hermes Govt Ultrashort A (FGUAX)
Follow This Fund
Best Performing in Ultrashort Bond Over the Last Year
| 5.7% | Medlst Shrt Dur Inv (SEMRX) |
| 4.9% | T. Rowe Price Ultra Short-Term Bond Z (TRZWX) |
| 4.5% | Western Asset Ultra-Short Income A (ARMZX) |
| 4.5% | Touchstone Ultra Short Dur F/I Y (TSYYX) |
| 4.5% | Federated Hermes Ultrashort Bond A (FULAX) |
Fund Details
Federated Hermes Govt Ultrashort A Overview
Federated Hermes Govt Ultrashort A (FGUAX) is an actively managed Taxable Bond Ultrashort Bond fund. Federated launched the fund in 2003.
The investment seeks current income. The fund's overall strategy is to invest in a portfolio of U.S. government securities and U.S. government agency securities (including mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises (GSEs)) with an overall dollar-weighted average duration of one year or less. Duration measures the price sensitivity of a fixed-income security to changes in interest rates. Within the one-year duration constraint, the Adviser will seek to lengthen or shorten portfolio duration based on its interest rate outlook.
About Federated Hermes Govt Ultrashort A (FGUAX)
There are 2 members of the management team with an average tenure of 22.33 years: Liam O'Connell (2010), Susan Hill (1997). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA US 6M Trsy Bill TR USD index with a weighting of 100%. Federated Hermes Govt Ultrashort A has 258 securities in its portfolio. The top 10 holdings constitute 18.0% 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 Govt Ultrashort A is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Federated Hermes Govt Ultrashort A has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 67.6% (67.6% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Federated Hermes Govt Ultrashort A has 32.5% of the portfolio in cash.
Assets Under Management
The fund has $618 million in total assets, which is below the $941 million average for the Ultrashort Bond 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.
FGUAX 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 Govt Ultrashort A expense ratio is average compared to funds in the Ultrashort Bond category. Federated Hermes Govt Ultrashort A has an expense ratio of 0.41%, which is 9% 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 Govt Ultrashort A has a portfolio turnover rate of 22%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 77% for the Ultrashort Bond category.
Recently, in the month of June 2026, Federated Hermes Govt Ultrashort A returned 0.3%, which earned it a grade of B, as the Ultrashort Bond 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 Govt Ultrashort A has a trailing yield of 4.16%, which is below the 4.24% 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 Govt Ultrashort A Grades
Year to date, the fund has returned 1.9%, 0.1 percentage points better than the category, which translates into a grade of B. The fund has returned 4.5% over the past year (grade of B), 5.0% over the past three years (grade of D) and 3.5% per year over the past five years (grade of D) and 2.2% per year over the past 10 years (grade of F).
For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about Federated Hermes Govt Ultrashort A, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
FGUAX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FGUAX Return (NAV) | 0.3% | 1.0% | 4.5% | 5.0% | 3.5% | 2.2% |
| FGUAX Grade | B | C | B | D | D | F |
| +/- Category | 0.1% | -0.0% | 0.3% | -0.3% | -0.1% | -0.4% |
| Ultrashort Bond Avg | 0.3% | 1.0% | 4.2% | 5.3% | 3.6% | 2.7% |
| FGUAX Tax Cost Ratio | na | na | 1.7% | 2.0% | 1.5% | 0.9% |
FGUAX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FGUAX Return (NAV) | 1.9% | 4.9% | 5.5% | 5.1% | 0.3% | -0.2% | 1.3% | 1.6% | 1.4% | 0.7% | -0.1% |
| FGUAX Grade | B | B | D | F | C | F | C | F | D | F | F |
| +/- Category | 0.1% | 0.1% | -0.4% | -0.9% | 0.4% | -0.3% | -0.2% | -1.5% | -0.2% | -0.8% | -1.6% |
| Ultrashort Bond Avg | 1.8% | 4.9% | 5.9% | 5.9% | -0.2% | 0.1% | 1.5% | 3.1% | 1.7% | 1.6% | 1.5% |
| Risk Measures | |
| Standard Deviation: | 0.6% |
| Total Risk Index: | 0.05 - Low |
| Category Risk Index: | 1.03 - Above Average |
| Category Risk Grade: | D (64% Rank) |
| Beta: | 0.09 |
| R-Squared: | 77% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Limited Sensitivity |
| Yield: | 4.2% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $2278 Mil |
| Fund Total Assets: | $ 619 Mil |
| Share Class Type: | A |
| Portfolio Turnover: | 22% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 29.0 years | |||
| Average Tenure: 22.3 years | |||
| Managers (Year): Hill Susan (1997), O'Connell Liam (2010) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 258 |
| % in Top 10 Holdings: | 18.0% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 67.6% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 32.5% |
Purchase Information
| Fund Family: | Federated |
| Phone Number: | 800-341-7400 |
| Website: | www.federatedinvestors.com |
| Status: | Open |
| Inception Date: | March 6, 2003 |
| Min. Initial Purchase: | $1,500 |
| Min. Initial IRA Purchase: | $ 250 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.41% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.45% |
| Share Class: | Federated Hermes Govt Ultrashort IS |
| Min. Subsequent Purchase: | $ 100 |
| Min. Subsequent IRA Purchase: | $ 100 |
