Rural America Growth & Income Fund

Overview
Performance
Composition
Distributions
Management
Documents

Investment Objective and Strategy

Important Announcement

The Homestead Rural America Growth & Income Fund (“Fund”) will stop accepting purchases after April 30, 2024, and will fully liquidate its holdings on the close of business on June 12, 2024.

As described in the supplement to the Prospectus, the Homestead Funds Board of Directors (the “Board”), based upon the recommendation of Homestead Advisers Corp. (the “Adviser”), has determined that it is in the best interest of our shareholders to liquidate and terminate the Fund. The Adviser’s recommendation was based on the small amount of assets in the Fund and the Adviser’s assessment that the Fund cannot continue its operations in an economically viable manner.

If you are a current shareholder in the Fund, we have information to guide you as to what actions you, depending on the nature of your account, will need to take in your account to prepare for this change. Our representatives are available to answer any questions you may have Monday through Friday 8:30 a.m. – 5:00 p.m. ET.

Investment Objective and Strategy

Is this fund a good choice for me?

The Rural America Growth & Income Fund may be appropriate if you are seeking a mixture of interest income and capital appreciation.

Investment objective and strategy

Under normal circumstances, the fund intends to invest at least 80% of its net assets (plus the amount of borrowings for investment purposes) in securities that have exposure to rural America. The fund primarily invests in equity and fixed-income securities of U.S. issuers.

Fund Profile

Inception	May 01, 2021
Asset Allocation	Balanced
Benchmark	Blended Index
Ticker Symbol	HRRLX
CUSIP Number	437771207
Fee Structure	No Load
Expense Ratio	2.31% (Net 1.00%) (12/31/2023)
Median Expense Ratio for Peer Group	0.73% (12/31/2023)
Fee Waiver	Contractual through 4/30/2024
Transaction Fees	NONE
30-Day SEC Yield	1.77% (3/31/2024)

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.

Homestead Advisers has contractually agreed, through at least April 30, 2024, to limit the Fund’s operating expenses to an amount not to exceed 1.00% of the Fund’s average daily net assets. Operating expenses exclude interest; taxes; brokerage commissions; other expenditures that are capitalized in accordance with generally accepted accounting principles; other extraordinary expenses not incurred in the ordinary course of the Fund’s business; and acquired fund fees and expenses such as the fees and expenses associated with an investment in (i) an investment company or (ii) any company that would be an investment company under Section 3(a) of the Investment Company Act of 1940, as amended (the “1940 Act”), but for the exceptions to that definition provided for in Sections 3(c)(1) and 3(c)(7) of the 1940 Act. This waiver agreement will terminate immediately upon termination of the Fund’s Management Agreement and may be terminated by the Fund upon 60 days’ notice.

Performance

Total Returns

As of 3/31/20243/31/2024

		Average Annual
	Aggregate YTD	1 YR	3 YR	5 YR	10 YR	Since Fund's Inception
Rural America Growth & Income Fund*	4.16%	9.21%	N/A	N/A	N/A	-0.07%
Blended Index	5.89%	18.17%	N/A	N/A	N/A	4.60%

		Average Annual
	Aggregate YTD	1 YR	3 YR	5 YR	10 YR	Since Fund's Inception
Rural America Growth & Income Fund*	4.16%	9.21%	N/A	N/A	N/A	-0.07%
Blended Index	5.89%	18.17%	N/A	N/A	N/A	4.60%

*The inception date of this fund is May 1, 2021.

The total returns shown above represent past performance, which does not guarantee future results. 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. Current performance may be higher or lower than the performance data quoted. For performance data current to the most recent month-end, call 800.258.3030 or visit homesteadfunds.com.

Fund total returns include changes in principal value and reinvested dividends, income and capital gain distributions.

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. The market price of equity securities may go up or down, sometimes rapidly or unpredictably. Equity securities may decline in value due to factors affecting the issuer or equity securities markets generally.

The Blended Index is composed of the Russell 3000 Index and the Bloomberg Intermediate U.S. Government/Credit Bond Index in a static 60/40 allocation. The Russell 3000 Index is a market capitalization-weighted benchmark index made up of the 3000 largest U.S. stocks, which represent about 98% of the U.S. equity market. The Bloomberg Intermediate US Government/Credit Bond Index is a broad-based flagship benchmark that measures the non-securitized component of the U.S. Aggregate Index with less than 10 years to maturity. Indices are unmanaged, and investors cannot invest directly in an index. Unless otherwise noted, performance of indices does not account for any fees, commissions or other expenses that would be incurred. Returns may or may not include reinvested dividends. Updated 2/27/23

Calendar-Year Total Returns

*The inception date of this fund is May 1, 2021.

Fund total returns include changes in principal value and reinvested dividends, income and capital gain distributions.

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.

The Blended Index is composed of the Russell 3000 Index and the Bloomberg Intermediate U.S. Government/Credit Bond Index in a static 60/40 allocation. The Russell 3000 Index is a market capitalization-weighted benchmark index made up of the 3000 largest U.S. stocks, which represent about 98% of the U.S. equity market. The Bloomberg Intermediate US Government/Credit Bond Index is a broad-based flagship benchmark that measures the non-securitized component of the U.S. Aggregate Index with less than 10 years to maturity. Indices are unmanaged and investors cannot invest directly in an index. Unless otherwise noted, performance of indices does not account for any fees, commissions or other expenses that would be incurred. Returns include reinvested dividends.

Growth of $10,000

The line chart is a comparison of the change in value of a $10,000 investment in the fund and the Blended Index which is composed of the Russell 3000 Index and the Bloomberg Intermediate U.S. Government/Credit Bond Index in a static 60/40 allocation. The chart represents past performance, which is no guarantee of future results. Current performance may be higher or lower than that shown above. Returns and the principal value of your investment will fluctuate such that shares, when redeemed, may be worth more or less than their original cost. The fund’s average annual total returns are net of any fee waivers and reimbursements. Returns do not reflect taxes that the shareholder may pay on fund distributions or the redemption of fund shares.

Industry Classifications

Morningstar
Category	Allocation — 50% to 70% Equity

Lipper
Classification	Mixed-Asset Target Allocation Growth Funds

Share Price History

As of 04/17/2024

The chart plots daily share prices for the last 10 years. The interactive calendar will retrieve the share price for any business day since the fund's inception.

Composition

Asset Mix

As of 3/31/2024

The Rural America Growth & Income Fund is an actively managed balanced fund, meaning the fund’s portfolio includes both stocks and bonds.

Bond Security Weightings

As of 3/31/2024

Equity Sector Weightings

As of 3/31/2024

Top 10 Holdings

As of 3/31/2024

Federal Farm Credit Bank, 05/03/32, 4.09%	3.0%
U.S. Treasury Note, 03/15/27, 4.25%	3.0%
Federal Farm Credit Bank, 08/15/28, 3.87%	2.6%
U.S. Treasury Note, 02/28/31, 4.25%	2.2%
Fastenal Co.	2.2%
Stryker Corp.	2.2%
Deere & Co.	2.1%
Micron Technology, Inc.	2.0%
Zoetis Inc.	2.0%
Federal Farm Credit Bank, 09/27/29, 4.00%	1.9%
Total	23.2%

Portfolio holdings are subject to change without notice.

Portfolio Characteristics

As of 3/31/2024

Net Assets	$10,341,673
Number of Holdings	124
Weighted Average Maturity	4.22 years
Duration	3.43 years

Weighted average maturity and duration apply to the fixed-income portion of the fund’s portfolio.

Distributions

Income and/or capital gains distributions for this fund, if any, are listed in the table below for the current and previous calendar year. Mutual funds are required to pass through to their shareholders substantially all of the interest income and capital gains earned by the fund during the year. These distributions are paid on a regular schedule as shown in the table below.

2023 Earnings Distribution

Distribution Type	Record Date	Declaration Date	$/Per Share
Ordinary Income	6/29/23	6/30/23	$0.0046
Ordinary Income	12/13/23	12/14/23	$0.1131

The record date is the date on which you must be a shareholder in order to receive a portion of the fund’s distribution.

The declaration date, typically the business day after the record date, is the date the amount of the distribution is announced and deducted from fund assets. On this day, the amount of the distribution is deducted from fund assets and calculated as a per share amount to be passed through to shareholders. The fund’s share price will decline by the amount of the distribution (plus or minus any share price change related to market activity). The following business day, shareholders will see their portion of the distribution posted to their account as either a cash dividend or dividend reinvestment.

Rural America Growth & Income Fund

Investment Objective and Strategy

Important Announcement