Homestead Funds Launches New Fund Investing in Rural America
Guided by its mission to provide Main Street investors with Wall Street expertise, Homestead Funds developed the Rural America Growth & Income Fund to allow Americans to invest in businesses and sectors tied to the rural communities in which they live and work.
“We believe America is at the inflection point for a rural economic boom, and we want to participate in this cycle by investing in strong businesses that are also in our cooperative membership footprint across the country through this new fund,” said Mark Santero, CEO of Homestead Funds. “Having served electrical cooperative members for over 30 years, Homestead Funds saw firsthand how farmers and ranchers from the southeastern hills to the western mountain regions built co-op communities to improve rural Americans’ quality of life. We hope to do the same with the Rural America Growth & Income Fund by investing in industries that have been the lifeblood of the Heartland, in addition to new companies emerging in these regions.”
An active equity and fixed-income portfolio provides exposure to rural America.
The fund will employ an active management approach to investing primarily in equity and fixed-income securities of companies that are important to the economic development of rural America.
RE Advisers Corporation, the fund’s investment advisor, follows a bottom-up approach in selecting stocks of companies based on its fundamental research and consideration of a variety of factors, such as a company’s business, potential earning power, financial ratios, competitive advantages, and the experience and qualifications of the company’s management.
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. Loans are subject to risks involving the enforceability of security interests and loan transactions, inadequate collateral, liabilities relating to collateral securing obligations, and the liquidity of the loans. Equity securities generally have greater price volatility than fixed-income securities and are subject to issuer risk and market risk.