Is This Fund a Good Choice for Me?
The International Equity Fund may be appropriate if your goal is to grow your savings over the next several years by investing in companies based outside the U.S. You’re also comfortable with temporary — yet sometimes dramatic — fluctuations in your account balance based on the performance of the underlying stocks.
Investment Objective and Strategy
The fund seeks long-term capital appreciation through investments in equity securities of companies based in developed markets outside the United States as well as in established companies in emerging and frontier markets. Harding Loevner, the fund’s subadvisor, undertakes fundamental research to identify companies that it believes are well managed, financially sound, fast growing and strongly competitive and whose shares are underpriced relative to estimates of their value. To reduce volatility, the fund is diversified across dimensions of geography, industry, currency and market capitalization and normally holds investments across at least 10 countries.
|Inception||January 22, 2001|
|Benchmark||MSCI EAFE Index|
Category: Foreign Large Growth
Overall, out of 382 funds, according to risk adjusted return
Classification: International Multi-Cap Core
Overall, out of 60 funds, according to expense minimization
Lipper ratings for Expense reflect the fund’s expense minimization relative to peers with similar load structures as of 3/31/21. 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-year, five-year, 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 4 for the three-year, five-year, 10-year and Overall periods (number of funds rated in parentheses). Expense: Three-year (60 funds), Five-year (54 funds), 10-year (48 funds) and Overall (60 funds). More information is available at lipperleaders.com.
Morningstar rated this fund, in Morningstar’s foreign large growth category, 3 stars for the Overall period out of 382 funds, 2 stars for the 10-year period out of 224 funds, 3 stars for the five-year period out of 319 funds and 3 stars for the three-year period out of 382 funds for performance periods ending 3/31/21. 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-ended 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-year, five-year, 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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|Fee Structure||No Load|
|Expense Ratio||1.24% (Net 0.99%) (12/31/2020)|
|Median Expense Ratio for Peer Group||1.26% (12/31/2020)|
|Fee Waiver||Contractual through 5/1/2022|
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.
RE Advisers has contractually agreed, through at least May 1, 2022, to limit the Fund’s operating expenses to an amount not to exceed 1.00%. This waiver agreement will terminate immediately upon termination of the Fund’s Management Agreement and may be terminated by the Fund or RE Advisers with one year’s notice.