The Short-Term Bond Fund (HOSBX) seeks a high level of income consistent with maintaining minimum fluctuation of principal by investing in high-quality, short-term debt securities.
These investments primarily include: commercial paper, corporate bonds, U.S. Treasury securities, securities issued or guaranteed by U.S. government entities, agencies or instrumentalities, municipal bonds, U.S. dollar-denominated debt securities of foreign issuers (Yankee Bonds), and asset-backed and mortgage-backed securities.
The dollar-weighted average portfolio maturity of the Fund, under normal circumstances, is expected to be three years or less.
|Inception||November 05, 1991|
|Asset Allocation||Fixed Income|
|Morningstar Category||Short-Term Bond|
|Lipper Classification||Short Investment Grade Debt|
|Benchmark||ICE BofA ML 1-5 Year Corp./Gov. Index|
|Expense Ratio||0.76% (12/31/17)|
|Median Expense Ratio for Peer Group||0.80% (12/31/17)|
|Minimum for Initial Purchase||$500/$200 IRA|
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. 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.
|Morningstar Overall Rating||****|
Lipper ratings for Preservation reflect the Funds’ historical loss avoidance relative to other funds within the same asset class, as of 9/30/18. Preservation ratings are relative, rather than absolute, measures, and funds named Lipper Leaders for Preservation may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds. The Lipper ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Preservation 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 Short-Term Bond Fund, in Lipper’s Short Investment Grade Debt Funds classification, received a rating of 5 for the three-, five-, 10-year and Overall periods (number of funds rated in parentheses): Preservation: Three Year (5,815 funds), Five Year (4,984 funds), Ten Year (3,238 funds) and Overall (5,815 funds).
Morningstar rated this Fund, in Morningstar’s short-term bond category, 4 stars for the Overall period out of 474 funds, 4 stars for the 10-year period out of 260 funds, 3 stars for the five-year period out of 400 funds and 3 stars for the three-year period out of 474 funds for performance periods ending 9/30/18. 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.
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Senior Fixed-Income Portfolio Manager
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.