Fund Evaluator:
Federated Hermes Municipal Bond C (LMSCX)
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Best Performing in Muni National Long Over the Last Year
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Fund Details
Federated Hermes Municipal Bond C Overview
Federated Hermes Municipal Bond C (LMSCX) is an actively managed Municipal Bond Muni National Long fund. Federated launched the fund in 1993.
The investment seeks a high level of current 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. The fund's investment adviser may also invest the fund's assets in securities whose interest (while exempt from the federal regular income tax) may be subject to (or may be a specific preference item for purposes of) the federal alternative minimum income tax for individuals.
About Federated Hermes Municipal Bond C (LMSCX)
There are 2 members of the management team with an average tenure of 0.79 years: Ann Ferentino (2025), Derek Plaski (2025). 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 Morningstar Muni National Lng Avg TR USD index with a weighting of 100%. Federated Hermes Municipal Bond C has 158 securities in its portfolio. The top 10 holdings constitute 14.3% 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 Municipal Bond C is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Federated Hermes Municipal Bond C has 0.4% 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 100.0% (99.6% domestic bond, 0.4% foreign bond and 0.0% convertible bond). Federated Hermes Municipal Bond C has 0.0% of the portfolio in cash.
Assets Under Management
The fund has $1 million in total assets, which is below the $1 billion average for the Muni National Long 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.
LMSCX 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 Municipal Bond C expense ratio is high compared to funds in the Muni National Long category. Federated Hermes Municipal Bond C has an expense ratio of 1.58%, which is 103% higher than its category average, making the fund expense ratio grade a F. 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 Municipal Bond C has a portfolio turnover rate of 37%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 37% for the Muni National Long category.
Recently, in the month of June 2026, Federated Hermes Municipal Bond C returned 0.9%, which earned it a grade of D, as the Muni National Long category had an average return of 1.0%. 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 Municipal Bond C has a trailing yield of 2.67%, which is below the 3.62% 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 Municipal Bond C Grades
Year to date, the fund has returned 2.3%, 0.4 percentage points worse than the category, which translates into a grade of D. The fund has returned 6.5% over the past year (grade of F), 2.7% over the past three years (grade of F) and -0.4% per year over the past five years (grade of F) and 0.9% per year over the past 10 years (grade of F).
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LMSCX 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 |
|
| LMSCX Return (NAV) | 0.9% | 2.4% | 6.5% | 2.7% | -0.4% | 0.9% |
| LMSCX Grade | D | D | F | F | F | F |
| +/- Category | -0.2% | -0.5% | -1.0% | -1.3% | -0.9% | -1.0% |
| Muni National Long Avg | 1.0% | 2.9% | 7.5% | 4.0% | 0.6% | 1.9% |
| LMSCX Tax Cost Ratio | na | na | 0.0% | 0.0% | 0.1% | 0.1% |
LMSCX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| LMSCX Return (NAV) | 2.3% | 1.7% | 0.7% | 6.0% | -11.4% | 1.4% | 3.8% | 7.2% | -0.7% | 4.3% | -0.5% |
| LMSCX Grade | D | F | F | F | C | F | F | F | F | F | F |
| +/- Category | -0.4% | -1.3% | -1.8% | -0.8% | 0.2% | -1.5% | -0.9% | -0.9% | -1.4% | -1.5% | -0.7% |
| Muni National Long Avg | 2.8% | 3.0% | 2.5% | 6.8% | -11.6% | 2.8% | 4.7% | 8.1% | 0.7% | 5.8% | 0.2% |
| Risk Measures | |
| Standard Deviation: | 6.3% |
| Total Risk Index: | 0.51 - Below Average |
| Category Risk Index: | 0.98 - Average |
| Category Risk Grade: | C (52% Rank) |
| Beta: | 1.11 |
| R-Squared: | 97% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Extensive Sensitivity |
| Yield: | 2.7% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $210 Mil |
| Fund Total Assets: | $ 1 Mil |
| Share Class Type: | C |
| Portfolio Turnover: | 37% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 1.1 years | |||
| Average Tenure: 0.8 years | |||
| Managers (Year): Plaski Derek (2025), Ferentino Ann (2025) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 158 |
| % in Top 10 Holdings: | 14.3% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.4% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 99.6% |
| Foreign Bond: | 0.4% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.0% |
Purchase Information
| Fund Family: | Federated |
| Phone Number: | 800-341-7400 |
| Website: | FederatedInvestors.com |
| Status: | Open |
| Inception Date: | April 21, 1993 |
| Min. Initial Purchase: | $1,500 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | No |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 1.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.75% |
Expenses and Fees | |
| Expense Ratio (%): | 1.58% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.78% |
| Share Class: | Federated Hermes Municipal Bond A |
| Min. Subsequent Purchase: | $ 100 |
| Min. Subsequent IRA Purchase: | $ 0 |
