The Intermediate Bond Fund (HOIBX) seeks to provide a high level of current income consistent with preservation of capital through investments in bonds and other debt securities.
Investments primarily include: commercial paper; corporate bonds; U.S. Treasury securities; securities issued or guaranteed by U.S. Government entities, its agencies or instrumentalities; municipal bonds, mortgage-backed securities; mortgage pass-through securities; U.S. Dollar-denominated debt securities of foreign issuers (Yankee bonds); sovereign and supranational debt securities; and other income-producing debt instruments with fixed, floating or variable interest rates.
The fund may invest in securities of any credit quality, and may invest up to 15% of assets in securities rated below investment grade.
The dollar-weighted average maturity of the Fund, under normal circumstances, is expected to be between three years and 10 years.
|Inception||May 01, 2019|
|Asset Allocation||Fixed Income|
|Morningstar Category||Intermediate Term Bond|
|Lipper Classification||Intermediate Investment Grade Debt|
|Benchmark||Bloomberg Barclays U.S. Agg Index|
|Expense Ratio||2.08% (Net 0.80%) (05/01/19)|
|Median Expense Ratio for Peer Group||0.80% (05/01/19)|
|Minimum for Initial Purchase||$500/$200 IRA|
The expense ratio shows the percentage of fund assets deducted annually to cover operating costs. Fund expense ratios shown here do not include acquired fund fees and expenses. If applicable, these additional costs are disclosed in the prospectus. The net expense ratio is the expense ratio minus the portion of expenses waived or reimbursed. Please see the current prospectus for additional details. The peer ratio is according to Morningstar Direct, based on each fund’s Morningstar classification.
RE Advisers Corporation has contractually agreed, through May 1, 2021, to limit the Fund’s operating expenses to an amount not to exceed 0.80%. This waiver agreement will terminate immediately upon termination of the Fund’s Management Agreement and may be terminated by the Fund or RE Advisers with one year’s notice.
Senior Fixed-Income Portfolio Manager
Fixed Income Portfolio Manager
Debt securities are subject to interest rate risk, credit risk, extension risk, income risk, issuer risk and market risk. The value of U.S. Government securities can decrease due to changes in interest rates or changes to the financial condition or credit rating of the U.S. Government. Investments in asset-backed and mortgage-backed securities are also subject to prepayment risk as well as increased susceptibility to adverse economic developments. High-yield, lower-rated, securities involve greater risk than higher-rated securities.