The Short-Term Bond Fund (HOSBX) is managed to earn a competitive level of interest income, consistent with a low level of share-price volatility. At least 80% of the fund’s net assets are invested in bonds that are in the three highest credit categories. The fund can hold U.S. government securities as well as corporate bonds and other types of debt instruments. Under normal circumstances, the fund’s weighted average maturity is expected to be three years or less.
The fund is suitable for those who want an investment that is designed to deliver a higher return than a money market fund, but with fewer ups and downs in share price than a longer-term bond fund.
|Inception||November 05, 1991|
|Asset Allocation||Fixed Income|
|Morningstar Category||Short-Term Bond|
|Lipper Classification||Short Investment Grade Debt|
|Benchmark||BofA ML 1-5 Year Corp./Gov. Index|
|Expense Ratio||0.74% (12/31/15)|
|Median Expense Ratio for Peer Group||0.85% (12/31/15)|
|Minimum for Initial Purchase||$500/$200 IRA|
The expense ratio shows the percentage of fund assets deducted annually to cover operating expenses. The peer group ratio is according to Morningstar Direct, 2015, based on each fund's Morningstar classification.
|Morningstar Overall Rating||****|
Lipper ratings for Total Return reflect the Fund’s historical total return performance relative to peers as of 12/31/16. Lipper ratings for Consistent Return reflect the Funds’ historical risk-adjusted returns, adjusted for volatility, relative to peers as of 12/31/16. Lipper ratings for Preservation reflect the Funds’ historical loss avoidance relative to other funds within the same asset class, as of 12/31/16. 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 Total Return, Consistent Return and 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): Total Return: 10 Year (157 funds) and Overall (261 funds). Consistent Return: Five Year (219 funds), 10 Year (152 funds) and Overall (256 funds). Preservation: Three Year (5,686 funds), Five Year (4,754 funds), Ten Year (3,113 funds) and Overall (5,686 funds). The Homestead Short-Term Bond Fund received a rating of 4 for the Total Return: Three Year (261 funds) and Five Year (224 funds). Consistent Return: Three Year (256 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 short-term bond category, 4 stars for the Overall period out of 445 funds, 4 stars for the 10-year period out of 252 funds, 4 stars for the five-year period out of 357 funds and 3 stars for the three-year period out of 445 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.
Fixed-Income Portfolio Manager
Senior Fixed-Income Portfolio Manager
Investments in fixed-income funds are subject to interest rate, credit and inflation risk. Interest rate risk is risk that a change in rates will negatively affect the value of the securities in the Fund’s portfolio.