Client Solutions
In the more than 30 years since the company’s founding, Homestead Advisers has grown in size and scope, but we’ve always kept who we serve in sight.
We work closely with financial professionals who are seeking to find experienced portfolio managers and strategies offered with transparent and affordable pricing. And while some may overlook us because of our size, we offer a compelling combination of experience, investment option and affordability.
Investing has never been more important in supporting the financial futures of American families, and we exist to help people get closer to meeting their investment goals.
Please note that the following funds are sub-advised by external managers: Daily Income Fund, Stock Index Fund, Growth Fund, and International Equity Fund.
| Fund Name | Type | Gross Expense Ratio | Net Expense Ratio | Gross Median Expense Ratio for Peer Group* | Net Median Expense Ratio for Peer Group* |
|---|---|---|---|---|---|
| Daily Income Fund (HDIXX) | Money Market | 0.59% | 0.59% | 0.51% | 0.42% |
| Short-Term Government Securities Fund (HOSGX) 1 | Bond | 0.88% | 0.75% | 0.96% | 0.82% |
| Short-Term Bond Fund (HOSBX) | Bond | 0.77% | 0.77% | 0.83% | 0.74% |
| Intermediate Bond Fund (HOIBX) 2 | Bond | 0.86% | 0.80% | 0.79% | 0.70% |
| Stock Index Fund (HSTIX) | Stock | 0.48% | 0.48% | 0.52% | 0.47% |
| Value Fund (HOVLX) | Stock | 0.62% | 0.62% | 1.14% | 1.04% |
| Growth Fund (HNASX) | Stock | 0.82% | 0.82% | 1.13% | 1.05% |
| International Equity Fund (HISIX) | Stock | 1.15% | 1.15% | 1.33% | 1.15% |
| Small-Company Stock Fund (HSCSX) | Stock | 1.14% | 1.14% | 1.37% | 1.24% |
As a money market fund, the Daily Income Fund has limited potential for income production. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including during periods of market stress.
*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.
1Homestead Advisers has contractually agreed, through at least April 30, 2026, to limit the Fund’s operating expenses to an amount not to exceed 0.75% of the Fund’s average daily net assets. Operating expenses exclude interest; taxes; brokerage commissions; other expenditures that are capitalized in accordance with generally accepted accounting principles; other extraordinary expenses not incurred in the ordinary course of the Fund’s business; and acquired fund fees and expenses such as the fees and expenses associated with an investment in (i) an investment company or (ii) any company that would be an investment company under Section 3(a) of the Investment Company Act of 1940, as amended (the “1940 Act”), but for the exceptions to that definition provided for in Sections 3(c)(1) and 3(c)(7) of the 1940 Act. This waiver agreement will terminate immediately upon termination of the Fund’s Management Agreement and may be terminated by the Fund upon 60 days’ notice.
2The inception date of this fund is May 1, 2019. Homestead Advisers has contractually agreed, through at least April 30, 2026, to limit the Fund’s operating expenses to an amount not to exceed 0.80% of the Fund’s average daily net assets. Operating expenses exclude interest; taxes; brokerage commissions; other expenditures that are capitalized in accordance with generally accepted accounting principles; other extraordinary expenses not incurred in the ordinary course of the Fund’s business; and acquired fund fees and expenses such as the fees and expenses associated with an investment in (i) an investment company or (ii) any company that would be an investment company under Section 3(a) of the Investment Company Act of 1940, as amended (the “1940 Act”), but for the exceptions to that definition provided for in Sections 3(c)(1) and 3(c)(7) of the 1940 Act. This waiver agreement will terminate immediately upon termination of the Fund’s Management Agreement and may be terminated by the Fund upon 60 days’ notice.
Debt securities are subject to various risks, including, among others, interest rate risk, credit risk, extension risk, income risk, issuer risk and market risk. The value of U.S. Government securities can decrease due to, among other reasons, changes in interest rates or changes to the financial condition or credit rating of the U.S. Government. Investments in asset-backed and mortgage-backed securities are also subject to prepayment risk, as well as increased susceptibility to adverse economic developments. High-yield, lower-rated, securities involve greater risk than higher-rated securities.
Equity securities generally have greater price volatility than fixed-income securities. The market price of equity securities may go up or down, sometimes rapidly or unpredictably. Equity securities may decline in value due to a number of factors including those relating to the issuer or equity securities markets generally, among others.
The Stock Index Fund pursues its objective by investing substantially all of its assets in another pooled investment vehicle ( “Master Fund”). The Master Fund’s investment objective is to match, as closely as possible, the performance of Standard & Poor’s 500 Stock Index. Accordingly, the ability of the Stock Index Fund to meet its investment objective is directly related to the ability of the master fund to meet its investment objective. Index funds may hold securities of companies that present risks that an investment adviser actively managing individual securities might otherwise seek to avoid and also are subject to tracking error risk.
Value stocks are subject to the risk that returns on stocks within this style category will trail returns of stocks representing other styles or the market overall over any period of time and may shift in and out of favor with investors generally, sometimes rapidly, depending on changes in market, economic, and other factors. Investments in value securities may be subject to risks, among others, that (1) the issuer’s potential business prospects will not be realized; (2) their potential values will not be recognized by the market; and (3) they will not perform as anticipated.
Growth stocks are subject to the risk, among others, that returns on stocks within this style category will trail returns of stocks representing other styles or the market overall over any period of time and may shift in and out of favor with investors generally, sometimes rapidly, depending on changes in market, economic, and other factors. Growth stocks can be volatile. These companies typically invest a higher portion of their earnings in their businesses and therefore may not offer the level of dividends provided by a number of value stocks, which may have the potential to cushion stock prices in a falling market. Also, earnings disappointments can lead to sharply falling prices because investors frequently buy growth stocks in anticipation of superior earnings growth.
Foreign securities are subject to political, regulatory, and economic risks not generally present in domestic investments and may experience more extreme changes in value than securities of U.S. companies. Investing in emerging and frontier markets may be subject to greater political and economic instability, less developed securities markets, and different and enhanced risks from those in more developed markets.
As a general matter, securities of small and medium-sized companies tend to be riskier than those of larger companies. Compared to large companies, small and medium-sized companies may face greater business risks because, among other factors, they may lack the management depth or experience, financial resources, product diversification or competitive strengths of larger companies, and they may be more adversely affected by prevailing economic conditions. There also may be less publicly available information about smaller companies than larger companies. In addition, these companies may have been recently organized and may have little or no operational or performance track record.
Diversification does not ensure a profit or protect against loss. It is a method used to help manage investment risk.
Performance information for the Growth Fund (formerly the Nasdaq-100 Index Tracking Stock Fund) reflects its previous investment strategy of matching, as closely as possible, before expenses, the performance of the Nasdaq-100 Index.
Performance information for the International Equity Fund (formerly the International Value Fund) reflects its investment as an actively managed fund subadvised by Mercator Asset Management from December 31, 2006, to September 14, 2015, as a passively managed portfolio directed by SSgA Funds Management, Inc. from September 15, 2015, to January 8, 2016, and, after a transition, as an actively managed fund subadvised by Harding Loevner LP from January 15, 2016 to period end.