Short-Term Bond Fund

Lipper ratings for Preservation reflect the funds’ historical loss avoidance relative to other funds within the same asset class, as of 6/30/19. 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 (5,787 funds), Five Year (5,048 funds), Ten Year (3,253 funds) and Overall (5,787 funds).

Morningstar rated this fund, in Morningstar’s short-term bond category, 4 stars for the Overall period out of 478 funds, 4 stars for the 10-year period out of 269 funds, 3 stars for the five-year period out of 421 funds and 3 stars for the three-year period out of 478 funds for performance periods ending 6/30/19. 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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