Value Fund
Stock Funds
- Overview
- Performance & Prices
- Composition
- Distributions
- Documents
Is This Fund a Good Choice for Me?
The Value Fund may be appropriate if your goal is to grow your savings over the next several years by investing in U.S. companies with relatively inexpensive stock prices. 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 primarily seeks long-term growth of capital and secondarily current income for the long-term investor and invests in stocks of companies selling below what RE Advisers believes to be their fundamental value. To determine whether a stock is undervalued, RE Advisers considers, among other factors, potential earning power, financial debt ratios and any competitive advantages a company may have. Under ordinary conditions, the fund will invest at least 80% of its net assets in common stocks of companies with market capitalizations of $2 billion or greater.
| Inception | November 19, 1990 |
|---|---|
| Asset Allocation | Stock |
| Benchmark | Russell 1000 Value Index |
| Ticker Symbol | HOVLX |
| CUSIP Number | 437769201 |
Morningstar
Category: Large Value
Overall, out of 1,129 funds, according to risk adjusted return
Lipper
Classification: Multi-Cap Value
expense
Overall, out of 162 funds, according to expense minimization
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Lipper ratings for Expense reflect the fund’s expense minimization relative to peers with similar load structures as of 9/30/20. 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-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 Value Fund, in Lipper’s multi-cap value 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 (162 funds), Five-year (153 funds), 10-year (138 funds) and overall (162 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 large-value category, 4 stars for the overall period out of 1,129 funds, 4 stars for the 10-year period out of 716 funds, 5 stars for the five-year period out of 992 funds and 4 stars for the three-year period out of 1,129 funds for performance periods ending 9/30/20. 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.
©2020 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Ratings are updated regularly. More information is available at morningstar.com.
| Fee Structure | No Load |
|---|---|
| Expense Ratio | 0.66% (Net 0.66%) (12/31/2019) |
| Median Expense Ratio for Peer Group | 1.06% (12/31/2019) |
| Transaction Fees | NONE |
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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. The peer ratio is according to Morningstar Direct, based on each fund’s Morningstar classification.
Peter is a senior equity analyst supporting RE Advisers’ large- and small-cap value strategies. Prior to joining RE Advisers in 2018, Peter was a senior equity analyst and portfolio manager at Ironwood Investment Management covering a variety of economic sectors. He was also an energy sector specialist at The Boston Company Asset Management.
He is a graduate of Trinity College, where he received a BA in economics and an MBA with a specialization in finance from Boston University.
Prabha manages the company’s large- and small-cap value strategies. Prior to joining RE Advisers in 2002, she was a portfolio manager for a division of GEICO Corporation, where she oversaw a regional equity fund. Prabha began her career with GEICO as an equity analyst with a focus on stocks in the financial and consumer sectors. She has also held senior positions at bank trust and commercial finance companies, where she managed convertible securities funds. She served as a past president and board chair of the CFA Society of Washington, D.C. Prabha is a member of 100 Women in Finance and is included in the group’s female fund manager listing.
She is a graduate of the University of Madras, where she received a Bachelor of Arts degree in economics. She received her Bachelor of Science degree in business economics and an MBA with distinction in finance from American University. Prabha holds the Chartered Financial Analyst designation.
Prabha is a member of Choptank Electric Cooperative, headquartered in Denton, MD.
Mark is a senior equity analyst supporting RE Advisers’ large- and small-cap value strategies. Mark brings more than 10 years of investment experience, most recently as a senior equity analyst at Chartwell Investment Partners on the large-cap team. Prior to that, he was a senior analyst and portfolio manager at Columbia Partners where he helped oversee growth and value strategies. As an equity analyst, Mark has focused on stocks in the technology and industrials sectors.
Mark is a graduate of Cornell University, where he received a Bachelor of Science degree in operations research and information engineering. He holds the Chartered Financial Analyst designation.
Jim co-manages the company’s large- and small-cap value strategies. Prior to joining RE Advisers in 2019, he was a portfolio manager at Putnam Investment Management, LLC, where he managed small-, mid- and multi-cap value oriented mutual funds.
He is a graduate of Colby College, where he received a Bachelor of Arts degree in English. He received his MBA from the Olin Graduate School of Business at Babson College. Jim holds the Chartered Financial Analyst designation.
Equity securities generally have greater price volatility than fixed-income securities and are subject to issuer risk and market risk. Value stocks are subject to the risk that returns on stocks within the style category will trail returns of stocks representing other styles or the market overall.
- Month End
- Quarter End
| AVERAGE ANNUAL | ||||||
|---|---|---|---|---|---|---|
| AGGREGATE YTD |
1 YR | 3 YR | 5 YR | 10 YR | SINCE FUND'S INCEPTION |
|
| Value Fund | -6.25% | 3.37% | 6.58% | 10.74% | 11.42% | 9.86% |
| Russell 1000 Value Index* | -11.58% | -5.03% | 2.63% | 7.66% | 9.95% | N/A |
| S&P 500 Value Index | -11.47% | -2.68% | 4.18% | 8.84% | 10.35% | N/A |
| Value Fund | Russell 1000 Value Index* | S&P 500 Value Index | |
|---|---|---|---|
| AGGREGATE | |||
| YTD | -6.25% | -11.58% | -11.47% |
| AVERAGE ANNUAL | |||
| 1 YR | 3.37% | -5.03% | -2.68% |
| 3 YR | 6.58% | 2.63% | 4.18% |
| 5 YR | 10.74% | 7.66% | 8.84% |
| 10 YR | 11.42% | 9.95% | 10.35% |
| SINCE FUND'S INCEPTION | 9.86% | N/A | N/A |
*Fund’s official benchmark as of January 1, 2020.
| Value Fund | Russell 1000 Value Index | S&p 500 Value Index | |
|---|---|---|---|
| 2015 | -1.28% | -3.83% | -3.13% |
| 2016 | 12.26% | 17.34% | 17.40% |
| 2017 | 22.17% | 13.66% | 15.36% |
| 2018 | -6.36% | -8.27% | -8.95% |
| 2019 | 27.69% | 26.54% | 31.93% |
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The total returns shown above represent past performance which does not guarantee future results. Investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. For performance data current to the most recent month-end, call 800.258.3030 or visit homesteadfunds.com
Total returns include interest, capital gains, dividends and distributions.
Equity securities generally have greater price volatility than fixed-income securities and are subject to issuer risk and market risk. Value stocks are subject to the risk that returns on stocks within the style category will trail returns of stocks representing other styles or the market overall.
The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The Standard & Poor’s 500 Value Index measures the performance of the large-capitalization value sector in the US equity market. It is a subset of the S&P 500 Index and consists of those stocks in the S&P 500 Index exhibiting the strongest value characteristics. Indices are unmanaged and investors cannot invest directly in an index. Unless otherwise noted, performance of indices do not account for any fees, commissions or other expenses that would be incurred. Returns include reinvested dividends.
0.66% (Net 0.66%) ( 12/31/2019 )
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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.
| Value Fund | $31,049 |
| S&P 500 Value Index | $28,639 |
| Russell 1000 Value Index | $26,923 |
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The line graph is a comparison of the change in value of a $10,000 investment in the fund and the Standard & Poor’s 500 Value Index over a ten-year period. The chart represents past performance, which is no guarantee of future results. Current performance may be higher or lower than that shown above. Returns and the principal value of your investment will fluctuate such that shares, when redeemed, may be worth more or less than their original cost. The fund’s average annual total returns are net of any fee waivers and reimbursements. Returns do not reflect taxes that the shareholder may pay on fund distributions or the redemption of fund shares.
The chart plots daily share prices for the last 10 years. The interactive calendar will retrieve the share price for any business day since the fund's inception.
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| Net Assets | $833,557,661 |
| Number of Holdings | 50 |
| Health care | 24.1% |
| Information technology | 18.2% |
| Financials | 15.6% |
| Industrials | 14.6% |
| Communication services | 7.4% |
| Materials | 7.4% |
| Consumer discretionary | 5.7% |
| Energy | 3.1% |
| Real estate | 2.2% |
| Consumer staples | 0.0% |
| Utilities | 0.0% |
| Short-term and other assets | 1.7% |
| Abbott Laboratories | 5.0% |
| Microsoft Corp. | 4.7% |
| Alphabet, Inc. | 4.7% |
| Avery Dennison Corp. | 4.4% |
| Honeywell International, Inc. | 4.3% |
| JP Morgan Chase & Co. | 3.7% |
| Visa Inc. | 3.5% |
| Allstate Corp. | 3.5% |
| NVIDIA Corp. | 3.2% |
| Merck & Co., Inc. | 3.1% |
| Total | 40.1% |
Income and/or capital gains distributions for this fund, if any, are listed in the table below for the current and previous calendar year. See Distributions for more on the timing and tax status of fund distributions.
| DISTRIBUTION TYPE | RECORD DATE | DECLARATION DATE | $/PER SHARE |
|---|---|---|---|
| Long-Term Capital Gains | 6/30/20 | 6/30/20 | $0.8284 |
| Ordinary Income | 6/30/20 | 6/30/20 | $0.3254 |
| DISTRIBUTION TYPE | RECORD DATE | DECLARATION DATE | $/PER SHARE |
|---|---|---|---|
| Long-Term Capital Gains | 6/27/19 | 6/28/19 | $0.4263 |
| Ordinary Income | 6/27/19 | 6/28/19 | $0.4443 |
| Long-Term Capital Gains | 12/17/19 | 12/18/19 | $6.63 |
| Ordinary Income | 12/17/19 | 12/18/19 | $0.3808 |
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The record date is the date on which you must be a shareholder in order to receive a portion of the fund’s distribution.
The declaration date, typically the business day after the record date, is the date the amount of the distribution is announced and deducted from fund assets. On this day, the amount of the distribution is deducted from fund assets and calculated as a per share amount to be passed through to shareholders. The fund’s share price will decline by the amount of the distribution (plus or minus any share price change related to market activity). The following business day, shareholders will see their portion of the distribution posted to their account as either a cash dividend or dividend reinvestment.
- Value Fund Fact Sheet (HOVLX)
- Semi-Annual Report (with Fund Holdings) — June 30, 2020
- 2020 2Q Market Review
- Performance Summary
- 2020 Mid-Year Distributions
- Fund Holdings — March 31, 2020
- Statement of Additional Information (SAI) — May 1, 2020
- Homestead Funds Prospectus — May 1, 2020
- 2019 Year-End Distributions
- Annual Report (with Fund Holdings) — December 31, 2019
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View all Resources and Forms-
Semi-Annual Report (with Fund Holdings) — June 30, 2020
The first half of 2020 has been unprecedented in terms of the economic fallout resulting from noneconomic factors, specifically the COVID-19 pandemic and the corresponding financial market volatility it has caused. Markets began the year on a high note, with stocks continuing their more than 10-year bull market run and interest rates still low but trending higher as the economy looked to be firmly back on a growth track following the 2008 financial crisis.
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2020 2Q Market Review — Massive Support Cushions the Blow
Stocks recovered substantially from first-quarter declines, though most categories of stocks remained below February peaks as of quarter-end. Bonds also posted gains as credit spreads, the difference in yields between non-government bonds and U.S. Treasuries, retreated from crisis levels.
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Watch Now: Q2 2020 Market Review — Massive Support Cushions the Blow
Hear from our portfolio managers on fund performance and sector exposure, portfolio positioning and near-term outlook.
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Homestead Funds paid income and/or capital gain spillback distributions on June 30, 2019.
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Our Perspectives: Consistency and Collaboration in Equity Management
RE Advisers, investment advisor of Homestead Funds, has a long history of managing institutional and mutual fund portfolios. Our equity team today remains true to its roots, being composed of traditional value managers. But it has evolved in step with new technologies, the addition of new team members, and the influx of new ideas and […]
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Barron’s: The Best Mutual Funds You’ve Never Heard Of
Homestead’s Value Fund was one of five funds acknowledged for its “terrific track record and thoughtful, skilled managers.”
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Value Fund Noted in Investor’s Business Daily
Homestead’s Value Fund placed 28 on Investor’s Business Daily’s List of Mutual Fund Six-Month Leaders, top value funds.