The Value Fund (HOVLX) seeks capital growth over the long term and secondarily income. Fund assets are invested in stocks of established companies trading below what managers consider to be fundamental value. Portfolio managers apply a battery of fundamental tests to determine whether a stock is attractively priced, looking at current stock price relative to potential earnings power and the company’s profitability relative to its peers. They also consider the company’s competitive position and management team.
|Inception||November 19, 1990|
|Morningstar Category||Large Value|
|Lipper Classification||Multi-Cap Value|
|Benchmark||S&P 500 Stock Index , S&P 500 Value Index|
|Expense Ratio||0.59% (12/31/15)|
|Median Expense Ratio for Peer Group||1.12% (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 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-weight 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 Value Fund, in Lipper’s multi-cap value classification, received a rating of 5 for the three-, five-, 10-year and overall periods (number of funds rated in parentheses): Expense: Three Year (96 funds), Five Year (93 funds), 10 Year (79 funds) and Overall (96 funds). The Homestead Value Fund received a rating of 4 for the Total Return (198 funds) 10-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 large-value category, 3 stars for the Overall period out of 1,088 funds, 3 stars for the 10-year period out of 680 funds, 4 stars for the five-year period out of 934 funds and 3 stars for the three-year period out of 1,088 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.