Even with an average pillar rating, Homestead has had impressive longevity among its product shelf. The firm's risk-adjusted success ratio is 71%, meaning that 71% of its strategies have both survived and beaten their respective category median on a risk-adjusted basis. A high success ratio indicates good performance and provides insight into a firm’s discipline around investment strategy and product development. Homestead's risk-adjusted performance compares similarly to competitors. Across its open-end and exchange-traded funds, the firm’s average 10-year Morningstar Rating is 3.4 stars, which is about standard. Portfolio management turnover at Homestead is higher than at peer firms, detracting from the overall assessment of the firm's stewardship. Turnover in the portfolio-management ranks can happen for a number of reasons, including mergers and liquidations, portfolio managers moving into other roles, or portfolio managers leaving the firm. In some cases, such change may not signal a serious or immediate problem at the firm, but can still be disruptive for investors, hinder the effectiveness of a firm’s investment processes, or suggest a weaker investment culture.
Category
A category is a way to group investments based on similar risk, return, and behavior profiles.