Is This Fund a Good Choice for Me?
The Intermediate Bond Fund may be appropriate if you want the potential to earn a higher level of current income than short-term fixed income investments typically provide. The fund’s share price is likely to be more volatile than a short-term bond fund’s because longer-term bonds are usually more sensitive to changes in interest rates than shorter-term securities.
Investment Objective and Strategy
The fund seeks a high level of income consistent with preservation of capital by investing in bonds and other debt securities. These investments include: commercial paper; corporate bonds; U.S. Treasury securities; securities issued or guaranteed by U.S. government entities, agencies or instrumentalities; municipal bonds; mortgage-backed and 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 average maturity of the portfolio, under normal circumstances, is expected to be between three and 10 years.
|Inception||May 01, 2019|
|Benchmark||Bloomberg Barclays U.S. Agg Index|
Category: Intermediate Core Bond
Classification: Intermediate Investment Grade Debt
|Fee Structure||No Load|
|Expense Ratio||1.13% (Net 0.80%) (12/31/2020)|
|Median Expense Ratio for Peer Group||0.73% (12/31/2020)|
|Fee Waiver||Contractual through 5/1/2022|
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, 2022, 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.