Intermediate Bond Fund

Bond Funds

Investment Objective and Strategy

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.

 

 

Fund Profile
Inception May 01, 2019
Asset Allocation Bond
Benchmark Bloomberg Barclays U.S. Agg Index
Ticker Symbol HOIBX
CUSIP Number 437771108
Industry Rankings

Morningstar

Category: Intermediate Core Bond

Lipper

Classification: Intermediate Investment Grade Debt

Costs
Fee Structure No Load
Expense Ratio 2.08% (Net 0.80%) (05/01/2019)
Median Expense Ratio for Peer Group 0.80% (05/01/2019)
Fee Waiver Contractual through 5/1/2021
Transaction Fees NONE
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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.

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.

Portfolio 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.

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