Fund Descriptions
Stock Index Fund

BlackRock Fund Advisors (formerly Barclays Global Fund Advisors) acts as the investment advisor to the S&P 500 Stock Master Portfolio, in which the Homestead Stock Index Fund invests all of its assets. The Fund is designed to track the Standard & Poor's 500 Stock Index, which tracks 500 large U.S. companies and is possibly the most widely used index of the U.S. stock market.

Performance

The tables below show the Fund’s average annual and year-to-date total returns for various holding periods compared to its benchmark index. An index is a collection of securities intended to represent some slice of the total securities market.

The bar chart shows the Fund's annual return in each of the last 10 years or for each year since the Fund's inception. This indicates how widely performance has varied year-by-year.

Stock Index Fund Historical Annual Total Returns

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.  Performance information for the Stock Index Fund reflects its investment experience in the S&P 500 Index Master Portfolio (renamed “S&P 500 Stock Master Portfolio” on 12/01/09) from October 15, 2007, to period end. Prior to October 15, 2007, the Stock Index Fund invested all of its assets in a different master portfolio.

Portfolio Composition

The following tables show how the Stock Index Fund is diversified and what its top holdings are.

Stock Index Fund Industry Diversification
On 03/31/10 Information technology 18.9% Financials 16.5% Health care 12.2% Consumer discretionary 11.2% Energy 10.9% Industrials 10.5% Consumer staples 10.1% Materials 3.5% Utilities 0.4% Telecommunication services 2.8% Short-Term and Other Net Assets 0.0% Total 100%

 

Stock Index Fund Top Ten Holdings
% of Total Investment at 03/31/10 Exxon Mobil Corp. 3.0% Microsoft Corp. 2.1% Apple Inc. 2.0% General Electric Co. 1.8% Proctor & Gamble Co. (The) 1.7% Johnson & Johnson 1.7% Bank of America Corp. 1.7% JPMorgan Chase & Co. 1.7% International Business Machines Corp. 1.6% Wells Fargo & Co. 1.5% Total 18.8%

Fund assets on 08/31/10

$50,617,000

Comparison of Growth

This line graph is a comparison of the change in value of a $10,000 investment in the Fund and the Standard & Poor’s 500 Stock Index.

Stock Index Fund Growth of $10,000

The Stock Index 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.

Distributions

If this Fund has declared income or capital gains distributions in the current year, they will be listed in the table below.  See Track Earnings Distributions for the Fund's distribution schedule.

Stock Index Fund 2009 Earnings Distributions
Distribution Type Declaration Date $/Per Share Ordinary Income 12/31/09 $0.1149

Stock Index Fund 2008 Earnings Distributions
Distribution Type Declaration Date $/Per Share Ordinary Income 06/30/08 $0.0054 Ordinary Income 09/15/08 $0.0514 Ordinary Income 12/31/08 $0.1637

Share Price History

This table shows how widely the Fund’s share price has fluctuated over time.

Stock Index Fund Share Price History

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year End $10.96 $9.84 $8.55 $6.55 $8.29 $9.03 $9.30 $10.57 $10.94 $6.64  $8.24 Year High $10.96 $11.41 $10.24 $8.73 $8.34 $9.14 $9.59 $10.76 $11.78 $10.79  $8.45  Year Low $10.04 $9.44 $7.20 $5.81 $5.97 $7.98 $8.50 $9.17 $10.26 $5.65  $5.00