The Small-Company Stock Fund (HSCSX) seeks capital growth over the long term through investment in stocks that are priced below what we consider to be intrinsic value and in companies that are positioned to make a change in their business that will lead to an improvement in their competitive position or financial returns.
Under normal circumstances, the fund will invest at least 80% of its net assets in common stocks of companies whose market capitalization, at the time of purchase, is similar to the market capitalization of companies represented in the Russell 2000 Index.
|Inception||March 04, 1998|
|Morningstar Category||Small Blend|
|Lipper Classification||Small-Cap Core Funds|
|Benchmark||Russell 2000 Index|
|Expense Ratio||0.89% (12/31/16)|
|Median Expense Ratio for Peer Group||1.38% (12/31/16)|
|Minimum for Initial Purchase||$500/$200 IRA|
The expense ratio shows the percentage of fund assets deducted annually to cover operating expenses. Fund expense ratios shown here do not include acquired fund fees and expenses. If applicable, these additional costs are disclosed in the prospectus. The peer group ratio is according to Morningstar Direct, based on each fund’s Morningstar classification.
|Morningstar Overall Rating||****|
Lipper ratings for Tax Efficiency reflect the Fund’s success at deferring taxes over the measurement period as of 03/31/17. Lipper ratings for Expense reflect the Fund’s expense minimization relative to peers with similar load structures as of 03/31/17. The Lipper ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Tax Efficiency and 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 Small Company Stock Fund, in Lipper’s Small-Cap Core Funds classification, received a rating of 5 for the three-, five-, 10-year and Overall periods (number of funds rated in parentheses). Tax Efficiency: Five Year (657 funds), 10 Year (471 funds) and Overall (759 funds). Expense: Three Year (253 funds), Five Year (230 funds), 10 Year (184 funds) and Overall (253 funds). The Homestead Small Company Stock Fund received a rating of 4 for the Tax Efficiency (759 funds) for the 3-year period. 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 small blend category, 4 stars for the Overall period out of 625 funds, 5 stars for the 10-year period out of 377 funds, 3 stars for the five-year period out of 537 funds and 3 stars for the three-year period out of 625 funds for performance periods ending 03/31/17. 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. Share prices of small-capitalization stock funds may be more volatile than those of large-capitalization stock funds. Smaller companies may have limited product lines, markets or financial resources, or their management teams may have less depth and expertise, compared with large-capitalization companies.