Fund Evaluator:
Federated Hermes Conservative Mcsht A (FHCBX)
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Fund Details
Federated Hermes Conservative Mcsht A Overview
Federated Hermes Conservative Mcsht A (FHCBX) is an actively managed Taxable Bond Ultrashort Bond fund. Federated launched the fund in 2024.
The investment seeks to provide current income consistent with capital preservation while maintaining liquidity. The fund seeks to invest all of its assets in investment-grade, fixed-income securities (or unrated securities of comparable quality), including but not limited to repurchase agreements, commercial paper, certificates of deposit, asset-backed securities and corporate debt securities. Within investment-grade securities, it may invest up to 15% of its assets in BBB rated, fixed-income securities or, with respect to securities maturing in 397 days or less, securities with short-term ratings of comparable credit quality to BBB.
About Federated Hermes Conservative Mcsht A (FHCBX)
There are 3 members of the management team with an average tenure of 4.94 years: Nicholas Tripodes (2021), Mark Weiss (2021), Daniel Mastalski (2022). 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 3M Trsy Bill TR USD index with a weighting of 100%. Federated Hermes Conservative Mcsht A has 114 securities in its portfolio. The top 10 holdings constitute 17.2% 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 Conservative Mcsht A is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Federated Hermes Conservative Mcsht A has 12.0% 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 80.2% (68.2% domestic bond, 12.0% foreign bond and 0.0% convertible bond). Federated Hermes Conservative Mcsht A has 19.8% of the portfolio in cash.
Assets Under Management
The fund has $18 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.
FHCBX 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 Conservative Mcsht A expense ratio is average compared to funds in the Ultrashort Bond category. Federated Hermes Conservative Mcsht A has an expense ratio of 0.40%, which is 11% 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 Conservative Mcsht A has a portfolio turnover rate of 26%, 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 Conservative Mcsht A returned 0.2%, which earned it a grade of D, 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 Conservative Mcsht A has a trailing yield of 4.18%, 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 Conservative Mcsht A Grades
Year to date, the fund has returned 1.7%, 0.1 percentage points worse than the category, which translates into a grade of D. The fund has returned 4.2% over the past year (grade of C), 5.1% over the past three years (grade of D) and 3.7% per year over the past five years (grade of C).
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FHCBX 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 |
|
| FHCBX Return (NAV) | 0.2% | 0.9% | 4.2% | 5.1% | 3.7% | na |
| FHCBX Grade | D | F | C | D | C | na |
| +/- Category | -0.0% | -0.1% | -0.0% | -0.2% | 0.1% | na |
| Ultrashort Bond Avg | 0.3% | 1.0% | 4.2% | 5.3% | 3.6% | 2.7% |
| FHCBX Tax Cost Ratio | na | na | 1.7% | na | na | na |
FHCBX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FHCBX Return (NAV) | 1.7% | 4.8% | 5.6% | 5.5% | 1.0% | na | na | na | na | na | na |
| FHCBX Grade | D | C | C | D | A | na | na | na | na | na | na |
| +/- Category | -0.1% | -0.1% | -0.2% | -0.4% | 1.2% | na | na | na | na | na | na |
| 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: | 0.4% |
| Total Risk Index: | 0.03 - Low |
| Category Risk Index: | 0.61 - Low |
| Category Risk Grade: | A (17% Rank) |
| Beta: | 0.02 |
| R-Squared: | 22% |
| 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: | $307 Mil |
| Fund Total Assets: | $ 19 Mil |
| Share Class Type: | A |
| Portfolio Turnover: | 26% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 5.4 years | |||
| Average Tenure: 4.9 years | |||
| Managers (Year): Tripodes Nicholas (2021), Weiss Mark (2021), Mastalski Daniel (2022) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 114 |
| % in Top 10 Holdings: | 17.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 12.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 68.2% |
| Foreign Bond: | 12.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 19.8% |
Purchase Information
| Fund Family: | Federated |
| Phone Number: | 800-341-7400 |
| Website: | www.FederatedInvestors.com |
| Status: | Open |
| Inception Date: | October 29, 2024 |
| 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: | 0.15% |
Expenses and Fees | |
| Expense Ratio (%): | 0.40% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.45% |
| Share Class: | Federated Hermes Conservative Mcsht Ins |
| Min. Subsequent Purchase: | $ 100 |
| Min. Subsequent IRA Purchase: | $ 100 |
