FSTYX

About FSTYX

Federated Hermes Short-Term Income Fund Institutional Shares is an open-end mutual fund focused on generating current income from a diversified short-duration bond portfolio. The fund primarily invests in investment-grade asset-backed and mortgage-backed securities, corporate bonds, and U.S. Treasury and Agency securities, targeting a portfolio duration typically between one and three years to manage interest rate sensitivity. It sits within the short-term bond category and is benchmarked to the Bloomberg 1–3 Year U.S. Government/Credit Index, with an additional internal 0–3 year composite reference. The strategy emphasizes broad sector exposure and high security count, with monthly distributions that reflect its income orientation. By concentrating on high-quality, shorter-maturity instruments, the fund seeks to offer a conservative avenue for income relative to cash alternatives while maintaining liquidity and diversification. Its role in the market is to serve investors aiming to balance income generation with limited duration risk, often as a core short-duration fixed income allocation or a complement to broader bond exposures.