Homestead Funds turned 25 in 2015, a milestone we celebrated with our shareholders, colleagues and many in the rural electric cooperative community who provided the vision and leadership necessary for our start. In these short videos, directors, staff and members of the cooperative community share their thoughts on what makes us unique.
Employees Raymond Scott Jr. and Megan McFarland talk about their approach to client service and what they think makes Homestead Funds unique.
Tony Marinello, a founding member of Homestead Funds’ board of directors and retired NRECA executive, discusses how and why the fund company got its start.
Doug Johnson, CEO of Blue Ridge Electric, and Mark Rose, manager of Bluebonnet Electric Cooperative, discuss the importance of Homestead Funds being part of the NRECA family.
The June 2015 issue of Forbes named the Small-Company Stock Fund to the Mutual Fund Honor Roll. To earn this distinction, the Fund had to outperform its peers in both bull and bear market cycles since 2000. The fund received a grade of A+ in bull markets and an A in bear markets. The Fund has remained on the Mutual Funds Honor Roll for its second consecutive year. To view the fund’s performance for the recent standardized periods click here.
There were 990 funds in the domestic stock fund category that includes the Small-Company Stock Fund and all were graded on a curve over two up-and-down market cycles using annual returns from August 31, 2000, through May 31, 2015. A fifth of the class got a straight A and a fifth a D. The Bs and Cs each go to 25% of the funds. In addition, funds had to have a portfolio team with an average tenure of at least 5 years. Sector funds, single-country funds, those not taking new investors and those with minimums over $50,000 were excluded.
Forbes’ Honor Roll is a short list of funds that have done well in both bull and bear markets, earning a grade A and better. Forbes’ evaluated 942 funds for their Honor Roll based on the following criteria: a compound annual return over the last two market cycles (since August 31, 2000) or at least 10% and a minimum investment no higher than $50,000. Sector funds and funds managed by anonymous portfolio managers or large committees were excluded. Raw performance data came from Lipper and Morningstar.
Past performance does not guarantee future results. Investing in small-company stocks poses special risks. 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.
The firm’s CEO and representatives from client services, portfolio operations, finance, compliance and marketing enjoyed a friendly golf challenge at a nearby driving range earlier this week. Working together, a cooperative principle, plays a key role in our ability to provide a high level of shareholder service. We think the spirit of collaboration, friendship and community is evident here.
Homestead’s Small-Company Stock Fund was named to the Kiplinger 25, a list of the editors’ top 25 mutual funds. The article appears in the May 2015 issue of Kiplinger’s Personal Finance. The fund also made the list in 2014 and 2013. In selecting funds for inclusion, editors favor low-cost, low-turnover funds run by seasoned managers.
Past performance does not guarantee future results. Investing in small-company stocks poses special risks, such as limited information on which to base investment decisions, and historically greater share-price volatility than larger-cap stocks have experienced. Investing in mutual funds involves risk, including the possible loss of principal. The Small-Company Stock Fund’s expense ratio below the peer group average, as determined by Lipper for the period ended December 31, 2014.