The International Equity Fund (HISIX) seeks long-term capital appreciation through investments in equity securities of companies based outside the United States.
The fund invests in companies based in developed markets outside the United States as well as in established companies in emerging and frontier markets. The fund’s subadviser undertakes fundamental research in an effort to identify companies that are well managed, financially sound, fast growing and strongly competitive and whose shares are underpriced relative to their fair value. To reduce its volatility, the fund is diversified across dimensions of geography, industry, currency and market capitalization. The fund normally holds investments across at least 15 countries.
|Inception||January 22, 2001|
|Asset Allocation||International Stock|
|Morningstar Category||Foreign Large Blend|
|Lipper Classification||International Multi-Cap Core|
|Benchmark||MSCI EAFE Index|
|Expense Ratio||1.45% (Net 0.99%) (12/31/15)|
|Median Expense Ratio for Peer Group||1.39% (12/31/15)|
|Minimum for Initial Purchase||$500/$200 IRA|
The expense ratio shows the percentage of fund assets deducted annually to cover operating costs. For some funds, the investment advisor has agreed voluntarily or contractually (for at least the current fiscal year) to waive or reimburse a portion of expenses. 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, 2015, based on each fund’s Morningstar classification.
|Morningstar Overall Rating||***|
Lipper ratings for Expense reflect the Fund’s expense minimization relative to peers with similar load structures as of 12/31/16. The Lipper ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Expense metrics over three-, five-, 10-year and overall periods. The highest 20% of funds in each peer group are named Lipper Leader or a score of 5, the next 20% receive a score of 4, the middle 20% are scored 3, the next 20% are scored 2 and the lowest 20% are scored 1. Homestead International Equity Fund, in Lipper’s International Multi-Cap Core classification, received a rating of 5 for the 10-year period (number of funds rated in parentheses). Expense: (54 funds). The Homestead International Equity Fund received a rating of 4 for the three, five-, and Overall (number of funds rated in parentheses). Expense: Three Year (95 funds), Five Year (84 funds), and Overall (95 funds). Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at lipperleaders.com.
Morningstar rated this Fund, in Morningstar’s foreign large-value category, 3 stars for the Overall period out of 606 funds, 3 stars for the 10-year period out of 329 funds, 3 stars for the five-year period out of 542 funds and 2 stars for the three-year period out of 606 funds for performance periods ending 12/31/16. The Morningstar Rating for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Past performance is no guarantee of future results. Ratings are updated regularly. More information is available at morningstar.com.
Senior Equity Portfolio Manager and Registered Representative
Senior Equity Portfolio Manager
Equity funds, in general, are subject to style risk, the chance that returns on stocks within the style category in which the fund invests will trail returns of stocks representing other styles or the market overall. International investing involves special risks such as currency fluctuation and political instability. Harding Loevner LP is not affiliated with Homestead Funds, RE Advisers Corporation, RE Investment Corporation or NRECA.