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AMECHomestead FundsApril 10th , 2018Brian AllenInstitutional Sales Consultant

Business DevelopmentBrian AllenInstitutional Sales ConsultantYEARS IN THE INDUSTRY:Since 2000ExperienceBrian has been providing investment guidance and client services toHomestead Funds shareholders for more than a decade. He holds FINRASeries 6 license (Investment Company and Variable Contracts), Series 63(Uniform Securities Agent State Law) and Series 65 (Investment AdvisorRepresentative).EducationBrian is a graduate of King College, where he received a Bachelor’s degree inbusiness administration. He received his MBA from Marymount University.We’d be pleased to provide more informationabout our strategies and welcome your call.Our People homesteadfunds.comv3-20172

Firm Overview

About HomesteadHomestead Funds was established in 1990 by the National Rural Electric CooperativeAssociation (NRECA), a not-for-profit organization that serves and represents thenation’s consumer-owned rural electric cooperatives. Based in Arlington, Virginia, we are a mutual fund company created to providehigh-quality, affordable investment products and services to rural electriccooperatives. We serve financial advisors, retirement plans, institutional clients as well asindividual investors. We currently make eight investment strategies available through our no-loadmutual fund offering. RE Advisers (REA), a wholly owned subsidiary of NRECA, provides investmentadvisory and administrative services to Homestead Funds.For Institutional or Advisor Use Only—Not for Public Distributionv3-2017Firm Overview homesteadfunds.com4

Created by and for the Co-OpCommunity A series of eight no-load mutual funds. Established by NRECA in 1990for member systems and their employees. Open to the public. Created for co-ops, but others can invest.“If you are an employee of a member co-op, you can think ofHomestead Funds as a local business supporting you and yourcommunity.”Brian AllenInstitutional Sales ConsultantBuilt for Cooperatives homesteadfunds.comv6-20175

Assets Under ManagementMore than 3.3 billion in assets as of 9/30/2017 Rollover, Traditional and Roth IRA accounts Education Savings and UGMA/UTMA accounts for minors Individual & joint accounts Corporate and trust accounts Cooperative benefit plan accounts, including deferred compensation planassetsHelping investors in the co-op community reach theirdreamsBuilt for Cooperatives homesteadfunds.comv6-20176

The Mutual Fund CompanyBuilt for Cooperatives

Our FundsMoney Market FundShort-Term: Investor’s time horizon is typicallyless than one year Daily Income FundBond FundsMedium-Term: Investor’s time horizon istypically less than five years Short-Term Government Securities Fund Short-Term Bond FundEquity FundsLong-Term: Investor’s time horizon is typicallymore than five years Stock Index Fund Value Fund Growth Fund Small-Company Stock Fund International Equity FundInvesting in mutual funds involves risk, including the possible loss of principal.You could lose money by investing in the Daily Income Fund. Although the Fund seeks topreserve the value of your investment at 1.00 per share, it cannot guarantee it will do so.An investment in the Fund is not insured or guaranteed by the Federal Deposit InsuranceCorporation or any other government agency. The Fund’s sponsor has no legal obligationto provide financial support to the Fund, and you should not expect that the sponsor willBuilt for Cooperatives homesteadfunds.comprovide financial support to the Fund at any time.v6-20178

How We Help Co-OpsDeferred Compensation Plan Accounts— Homestead Funds may be used as the funding vehicles for these plans.Designed to help members attract, retain and compensate directors, CEOsand other highly compensated employeesWelfare Benefit Plan Trust (FAS-106) Accounts— An account for covering future retiree medical costsCorporate Accounts— Regular investment accounts, which can be dedicated for specific purposesTrust Accounts— Unclaimed capital credits or scholarship monies can be held in trustaccountsBuilt for Cooperatives homesteadfunds.comv1-20179

Ways Investors Use Our Funds Build retirement savings Manage assets in retirement Accounts types and investment options for other goals— Save for education costs— Build wealth— Put money aside for a major purchase, like a houseBuilt for Cooperatives homesteadfunds.com 10v6-2017

Types of Retirement Accounts Roth IRA Traditional IRA Spousal IRA SEP IRA* Homestead Funds does not offer tax advice. Please consult an appropriate professional for your individualcircumstance.Built for Cooperatives homesteadfunds.com 11v6-2017

Types of Non-Retirement AccountsIndividual & Joint Accounts— Can be used to build emergency funds, save for larger goals or establish arainy day account.Trust Accounts— Can be used as an estate planning tool.Accounts for Minors— Education Savings Accounts can be used to save for a child’s education.— Uniform Gift/Transfer to Minor Accounts can be used to save for anythingbenefiting the minor (including education).Built for Cooperatives homesteadfunds.com 12v6-2017

Low CostsNo sales commissions (loads) Funds with a sales charges typically deduct the charge from the amountinvested. Funds offered at no load, like Homestead Funds, do not deduct a salescharge from the amount invested.Low expense ratios All funds have expenses, which cover the costs for needed services, likeportfolio management, accounting and recordkeeping. These costs are deducted from fund assets, effectively lowering investors’returns. Funds with a relatively low expense ratio, allow investors to keep more of thefund’s earnings.Homestead Fund expense ratios are in line with or below peers according to Morningstar Direct, based on eachfund’s Morningstar classification. The gross expense ratio shows the percentage of fund assets deducted annually tocover operating costs. For some funds, the investment advisor has agreed voluntarily or contractually (for at least thecurrent fiscal year) to waive or reimburse a portion of expenses. The net expense ratio is the gross expense ratiominus the portion of expenses waived or reimbursed. Please see the current prospectus for additional details.Built for Cooperatives homesteadfunds.com 13v6-2017

Fund Fees And Operating ExpensesFor the year ended December 31, 2016TRANSACTIONFEESDaily IncomeShort-Term GovernmentSecuritiesShort-Term BondStock IndexValueGrowthSmall-Company StockInternational EquityGROSSEXPENSE RATIONETEXPENSE 80.760.580.620.980.891.460.750.950.97MEDIAN EXPENSE RATIO FORPEER GROUP*0.49 %0.830.840.421.101.131.381.32The expense ratio shows the percentage of fund assets deducted annually to cover operating costs. Fund expenseratios shown here do not include acquired fund fees and expenses. If applicable, these additional costs are disclosedin the prospectus. For some funds, the investment advisor has agreed voluntarily or contractually (for at least thecurrent fiscal year) to waive or reimburse a portion of expenses. The net expense ratio is the expense ratio minus theportion of expenses waived or reimbursed. Please see the current prospectus for additional details. The peer ratio isaccording to Morningstar Direct, based on each fund’s Morningstar classification.Built for Cooperatives homesteadfunds.com 14v6-2017

Effects of Fund Operating CostsHypothetical 50,000 investment over 20 years at 8% return. 33,127 higher return than themore expensive fund in thisexample. 250,000 52,036 higher return than themost expensive fund in thisexample. 212,393 193,484 200,000 160,357 150,000 100,000 50,000 0Expense of 2.0%Expense of 1.0%Expense of 0.5%This illustration is for educational purposes only and is used to demonstrate a mathematical principle. Expensenumbers chosen for this illustration do not represent any particular investment/fund.Built for Cooperatives homesteadfunds.com 15v6-2017

Low MinimumsInitial investment minimum 500 for a regular account 200 for an IRA 0 if making scheduled, automatic investments frompaycheck or bank accountSubsequent investmentminimumNone — add to your account with any amountAccount service charges 15 annual custodial fee for IRA and EducationSavings Accounts 10 fee to send a federal funds wireNo fee to send money by ACH transferBuilt for Cooperatives homesteadfunds.com 16v6-2017

Financial Fragility and the 400 Question47%don’t55% ofhavehouseholdsenough liquid62%of Americans couldnot cover a 1,000ER visit or 500 carrepair with savingsof Americans couldnot come up with 400 in anemergency56%savings to replace amonth’s worth ofincomeof Americans worried aboutfinances in the last yearSource: Gabler, Neal. “The Secret Shame of Middle-Class Americans.” The Atlantic. May 2016.2017 Understanding Investing homesteadfunds.com 17v3

The Team Representatives have backgrounds in banking, brokerage and insurance. Each has passed FINRA Series 6 (Investment Company and VariableContracts) and 63 (Uniform Securities State Law) securities exams. Daily interaction with shareholders via telephone, emails and writtencorrespondence. In-depth knowledge of different account structures and processingrequirements.Built for Cooperatives homesteadfunds.com 18v6-2017

Business Development andClient RelationsBrian AllenInstitutional SalesConsultantDim a Awam lehSenior InstitutionalClient ServicesAssociateWill Cunningham ,CFP Senior ClientRelationship AdvisorKara GardnerSenior OperationsSpecialistDarry l Keeton,CIMA Head of DistributionMegan McFarland,CFP Senior ClientRelationship AdvisorAlaina Schrager,CFP Senior ClientRelationship AdvisorJohn ScottSenior Client ServicesAssociateRay m ond Scott,CFP Client RelationshipAdvisorMakia T illm anMutual FundsOperations SpecialistNancy JacobsSenior Client ServicesAssociateOur People homesteadfunds.com 19v3-2017

How We Can Help Discuss your financial goals Provide personalized investment guidance Provide investment education Assist with opening and funding accountsBuilt for Cooperatives homesteadfunds.com 20v6-2017

How We Help Our ShareholdersOne-on-one financial planning help and account service— Detailed assessment of your financial planning goals, budget, risktolerance— Guidance for structuring your portfolio for an appropriate risk/returntrade off— Help maintaining your target asset mix over timeBuilt for Cooperatives homesteadfunds.com 21v1-2017

Investing by Life Stage: Early CareerStart saving now for a more secure financial future.Investor Profile-Age 19 – 35Investment Considerations-Build an emergency fundInvestment Goals-Provide for familyPay off student loansBuy a homeSave for retirementEconomy and Markets homesteadfunds.com 22v1

Investing by Life Stage: Mid CareerReassess your investment goals and consider rebalancing,if necessary.Investor Profile-Age 36 – 51Investment Considerations-Continue growing emergency fundPrioritizing financial goalsContinue investing for retirementMake catch-up contributions, if necessaryInvestment Goals-Save for a child’s educationPay off mortgageTaking care of elderly parentsSave for retirementRebalancing can entail transaction costs and tax consequences that should be considered when determining arebalancing strategy.Economy and Markets homesteadfunds.com 23v1

Investing by Life Stage: Late CareerPlan your retirement income strategy.Investor Profile-Age 52-65Investment Considerations-Estimate your retirement income needsEvaluate your portfolioContinue investing for retirementMake catch-up contributions, if necessaryInvestment Goals-Eliminate debtSave for retirementEconomy and Markets homesteadfunds.com 24v1

Investing by Life Stage: RetirementOptimize your retirement experience.Investor Profile-Age 65 Investment Considerations-Make a decision about Social Security benefitsTransition asset allocationsLearn about Required Minimum Distributions(RMDs)Investment Goals-Financial securityLeaving money to heirsEconomy and Markets homesteadfunds.com 25v1