Growth Fund
Investment Objective and Strategy
Is this fund a good choice for me?
The Growth Fund may be appropriate if your goal is to grow your savings over the next several years by investing in U.S. companies that are expected to have above-average growth rates. 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 to provide long-term capital appreciation through investments in common stocks of growth companies. T. Rowe Price, the fund’s subadvisor, looks for companies expected to have an above-average rate of earnings and cash flow growth and a lucrative niche in the economy that gives them the ability to sustain earnings momentum even during times of slow economic growth. The fund normally invests at least 80% of net assets (including any borrowings for investment purposes) in the common stocks of large companies.
Fund Profile
| Inception | January 22, 2001 |
|---|---|
| Asset Allocation | Stock |
| Benchmark | Russell 1000 Growth Index |
| Ticker Symbol | HNASX |
| CUSIP Number | 437769706 |
| Fee Structure | No Load |
| Expense Ratio | 0.83% (12/31/2022) |
| Median Expense Ratio for Peer Group | 1.06% (12/31/2022) |
| Transaction Fees | NONE |
Performance
Total Returns
As of 3/31/2023
Growth of $10,000
The line chart compares the change in value of a $10,000 investment in the fund and the Russell 1000 Growth Index over a 10-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.
Industry Rankings
For the month ending 03/31/2023
Morningstar |
|
| Category | Large Growth |
|---|---|
| Rating* |
★★★
|
*Overall, out of 1,138 funds, according to risk-adjusted return
Lipper |
|
| Classification | Large-Cap Growth Funds |
|---|---|
| tax efficiency1 | 4 |
| expense2 | 4 |
1Overall, out of 615 funds, according to success at deferring taxes
2Overall, out of 166 funds, according to expense minimization
Share Price History
As of 06/08/2023
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.
Composition
Sector Weightings
As of 3/31/2023
Top 10 Holdings
As of 3/31/2023
| Microsoft Corp. | 12.2% |
|---|---|
| Apple, Inc. | 7.3% |
| Alphabet, Inc. | 6.4% |
| Amazon.com, Inc. | 6.1% |
| UnitedHealth Group, Inc. | 4.3% |
| NVIDIA Corp. | 4.1% |
| Intuit, Inc. | 3.7% |
| Fiserv, Inc. | 3.3% |
| Mastercard Inc. | 3.0% |
| Cigna Corp. | 2.8% |
| Total | 53.2% |
Portfolio holdings are subject to change without notice.
Portfolio Characteristics
As of 3/31/2023
| Net Assets | $263,912,321 |
|---|---|
| Number of Holdings | 59 |
Distributions
Income and/or capital gains distributions for this fund, if any, are listed in the table below for the current and previous calendar year. Mutual funds are required to pass through to their shareholders substantially all of the interest income and capital gains earned by the fund during the year. These distributions are paid on a regular schedule as shown in the table below.
2022 Earnings Distribution
| Distribution Type | Record Date | Declaration Date | $/Per Share |
|---|---|---|---|
| Long-Term Capital Gains | 6/29/22 | 6/30/22 | $0.3686 |
| Long-Term Capital Gains | 12/14/22 | 12/15/22 | $0.3382 |
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.
Portfolio Management
T. Rowe Price Associates
T. Rowe Price Associates is not affiliated with Homestead Funds, Homestead Advisers Corp., Homestead Financial Services Corp. or NRECA.
Equity securities generally have greater price volatility than fixed-income securities and are subject to issuer risk and market risk. Growth 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.