Fund Evaluator:

Federated Hermes Short-Interm Muni Svc Overview

Federated Hermes Short-Interm Muni Svc (FSHSX) is an actively managed Municipal Bond Muni National Short fund. Federated launched the fund in 1993.

The investment seeks to provide dividend income which is exempt from federal regular income tax. The fund pursues its objective by investing its assets so that, normally, distributions of annual interest income are exempt from federal regular income tax. It will invest at least a majority of its assets in securities rated investment-grade (or unrated securities of comparable quality), and may purchase securities rated below investment-grade (or unrated securities of comparable quality), which are also known as junk bonds, up to 49% of its assets.

About Federated Hermes Short-Interm Muni Svc (FSHSX)

There are 2 members of the management team with an average tenure of 2.70 years: Ann Ferentino (2025), Kyle Stewart (2022). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P Municipal Bond TR index with a weighting of 100% and S&P Municipal Bond Short TR index with a weighting of 100%. Federated Hermes Short-Interm Muni Svc has 203 securities in its portfolio. The top 10 holdings constitute 18.8% 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 Short-Interm Muni Svc is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Federated Hermes Short-Interm Muni Svc 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 99.9% (99.9% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Federated Hermes Short-Interm Muni Svc has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $5 million in total assets, which is below the $633 million average for the Muni National Short 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.

FSHSX 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 Short-Interm Muni Svc expense ratio is above average compared to funds in the Muni National Short category. Federated Hermes Short-Interm Muni Svc has an expense ratio of 0.65%, which is 13% higher than its category average, making the fund expense ratio grade a D. 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 Short-Interm Muni Svc has a portfolio turnover rate of 17%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 51% for the Muni National Short category.

Recently, in the month of July 2026, Federated Hermes Short-Interm Muni Svc returned -0.5%, which earned it a grade of C, as the Muni National Short category had an average return of -0.5%. 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 Short-Interm Muni Svc has a trailing yield of 2.68%, which is below the 2.78% 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 Short-Interm Muni Svc Grades

Year to date, the fund has returned 0.9%, 0.1 percentage points better than the category, which translates into a grade of B. The fund has returned 2.7% over the past year (grade of C), 3.3% over the past three years (grade of C) and 1.3% per year over the past five years (grade of D) and 1.3% per year over the past 10 years (grade of D).

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 Short-Interm Muni Svc, including its riskiness, submit your email to unlock the rest of the article.