Shareholders: New Transfer Agent Effective This December

Updates as of September 30, 2021

Reestablish your website login credentials the first time you log in after the change. After December 4, the expected date of Ultimus taking over as transfer agent, you will need to create new login credentials to access the website. Your existing credentials will no longer be valid. Screen prompts will walk you through the process, and you can call us for help if you need it. If you’ve bookmarked the old site, that link will no longer work. 

More paperless options. Now, in addition to requesting statements and regulatory documents — like the annual report and prospectus — you can elect to receive paperless trade confirmations. Less mailbox clutter!

New functionality for the model portfolios. For those looking to simplify the decision of which funds to invest in, we offer a range of predefined asset allocation mutual fund portfolios, from very conservative mixes to very aggressive mixes. You can also establish your own custom asset allocation model. We’re adding several new ways for you to use the models, including applying a model to an existing account or completing a risk questionnaire online to learn which model might work for you.

New mailing address. Our mailing address for return of forms and applications is changing. We’ll be updating the website and all of our existing inventory with the new information. Our phone number is not changing. It remains 800.258.3030.

Payroll deferrals. For shareholders who input their own payroll deferrals into their employer’s payroll system, our bank information will be changing. We will be in touch soon with more information. If your employer inputs your payroll deferral information on your behalf, we will be communicating the change with them directly. Coming in January: You will be able to control your fund allocations using a model portfolio. This will streamline processing for your payroll department and increase accuracy and efficiency.

Disclosure

Neither asset allocation nor diversification guarantees a profit or protect against a loss in a declining market. They are methods used to help manage investment risk.

Using the Asset Allocation Tool

The asset allocation tool relies entirely on the limited information you provide in response to the questions posed in the risk tolerance questionnaire, and does not take into account any other information pertaining to your particular personal financial or investment situation, to create a model portfolio and asset allocation.  Homestead Funds, RE Advisers Corporation, and RE Investment Corporation do not verify the completeness or accuracy of such information and do not further tailor the model portfolio and asset allocation to your particular circumstances.

 

As a result, you should not rely on the tool as a recommendation as to any asset allocation or security selection.  The tool does not provide any information regarding whether or how your model portfolio and asset allocation should change over time and is not a substitute for consulting with a financial advisor. Changes in tax or benefit laws, investment markets, or your own financial situation over time can cause actual results of any asset allocation made today to deviate substantially from expectations. To address this uncertainty, you should create several scenarios, with various sets of assumptions, to evaluate a wide range of possible outcomes.  You may make changes to your responses and portfolio selection at any time.

 

The asset allocation tool is provided on a non-discretionary basis and you are under no obligation to buy or sell any investment based on any model portfolio or asset allocation.

Pre-Defined Asset Allocations

The asset allocation tool and pre-defined mutual fund portfolios are educational tools and should not be relied upon as the primary basis for investment, financial, tax-planning, or retirement decisions.  The tools provide a sample of possible mutual fund portfolios based on varying degrees of market risk.  These portfolios are not tailored to the investment objectives of any specific investor.  The pre-defined portfolios and model portfolio and asset allocations neither are, nor should be construed as, investment advice, financial guidance or an offer or solicitation or recommendation to buy, sell, or hold any security, or to engage in any specific investment strategy by RE Advisers Corporation or RE Investment Corporation.

The asset allocations for one or more pre-defined or model portfolios may change at any time and neither RE Advisers Corporation nor RE Investment Corporation will notify you when such changes are made. In  addition, pre-defined and model mutual portfolios do not utilize any rebalancing methodologies and also will not be rebalanced when deposits or withdrawals are made. Therefore, if you choose to allocate your mutual fund holdings according to a pre-defined or model portfolio, your mutual fund holdings will not be updated as a result of any changes to the pre-defined or model portfolios nor according to any rebalancing strategy unless you elect to set up auto-rebalancing for your holdings. A rebalancing strategy seeks to minimize relative risk by aligning the portfolio to a target asset allocation as the portfolio’s asset allocation changes. Not rebalancing a portfolio may over time change its risk and return characteristics. Strategies that do not rebalance may not address prolonged changes in market conditions. You are responsible for monitoring your investments and their performance and for determining whether your investments should be rebalanced. You may set up auto-rebalancing for your portfolio at any time. This will rebalance your account back to your chosen asset allocation model percentages according to the frequency you select. Further, we are under no obligation to update or change the asset allocation tool in any way or inform you of any changes to the tool or to its hypothetical asset allocation models.

A pre-defined or model portfolio can help you focus on a possible asset allocation strategy and create a plan of action.  RE Advisers Corporation, RE Investment Corporation and their affiliates do not provide tax advice, and you always should consult your own tax advisor regarding your personal circumstances before taking any action that might have tax consequences.  You may also wish to consult a financial advisor for advice that is tailored to your investment needs.  There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives, provide you with a given level of income or protect against a loss in a declining market. The pre-defined portfolios and model portfolios and asset allocations are methods used to help manage investment risk.

You understand and acknowledge that in using the asset allocation tool and/or pre-defined mutual fund portfolios, you are choosing to enter a series of mutual fund orders allocated across a group of mutual funds that you have selected.

Investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than their original cost.

Customized Asset Allocation Model

You should consult with your financial advisor to establish your investment goals and the appropriate allocations of your investments.  Please confirm you are comfortable choosing a customized approach for your portfolio instead of a pre-defined portfolio.

Rebalancing

Rebalancing can entail transaction costs and tax consequences that should be considered when determining a rebalancing strategy.