U.S. Equity Fund (USEF)

Fund Characteristics
Fund Performance (Gross)
Fund Performance (Net)
Risk and Disclosures

Fund Objective, Strategy and Holdings

  • Earn long-term capital appreciation from a broadly diversified portfolio of primarily U.S. stocks.
  • Holds securities of publicly-traded U.S. based real estate investment trusts (REITs), limited partnership interests in private U.S. real estate and other private investments (venture capital, buyouts, etc.) of U.S. companies.
  • Holds equity index futures of U.S. stock indexes.


The U.S. Equity Fund (USEF) invests with investment managers that specialize in broadly diversified strategies. USEF also invests with more than a dozen general partners through its real estate and private equity investments. Over 30% of the Fund is invested in passive strategies while the remainder is actively managed. These managers rely on professional judgment that involves the use of fundamental analysis to select securities. They seek to invest in attractively valued companies that represent above-average long-term investment opportunities. Each active manager has an objective to outperform specific performance benchmarks related to their investment style.

Asset Managers

* Signatory to the United Nations Principles for Responsible Investment


Performance Review

For the fourth quarter 2016, the fund underperformed its benchmark due in part to its underweight exposure to the Financials sector and higher dividend-yielding companies, as well as an overweight exposure to the Information Technology sector.  The fund’s dedicated allocation to private real estate also modestly detracted from performance.  Quarterly contributors to performance included the fund’s overweighting of small- and mid-sized company stocks, with a corresponding underweight of large company stocks.

Fund Performance

Performance, Gross of Fees


U.S. Equity Fund – December 31, 2016

The accompanying chart represents the range of investment returns for the BNY Mellon Master Trust Universe for U.S. Equity manager asset pools. BNY Mellon provides a fund-level tracking service used to compare Wespath's actual gross of fees performance for its U.S. Equity strategy to the performance of similar asset pools of other institutional investors. The Universe includes corporate, foundation, endowment, public, Taft-Hartley and health care plans. Source: BNY Mellon.

See Risks and Disclosures for more information regarding Gross of Fees Performance.


Performance, Net of Fees - December 31, 2016

  3 mo YTD 1 yr 3 yr 5 yr 10 yr
U.S. Equity Fund
Russell 3000 Index
12.74% 8.43%

See Risks and Disclosures for more information regarding Net of Fees Performance.


Fund Statistics as of December 31, 2016

  USEF2 Benchmark
Wgt. Mkt. Cap ($MM) $86,421 $124,802
Price/Earnings 23.4 20.2
Price to Book 2.3 2.5
Dividend Yield3 1.3% 1.9%
# of Stocks 2,700 2,977
2 Reflects the portion of the fund portfolio that is invested in public equities and REITs.
3 Does not reflect the deduction of fees.

Risk Characteristics as of December 31, 2016

Statistics (trailing 5 years) USEF Benchmark
Beta 0.99 -  
R-Squared 0.97 -  

Fund Holdings as of December 31, 2016

Top 10 Stock Holdings

Company Fund %
Microsoft Corporation 1.5%
Apple Inc. 1.5%
Amazon.com, Inc. 1.1%
Facebook, Inc. 1.0%
JPMorgan Chase & Co. 0.8%
Alphabet Inc. 0.8%
Bank of America Corporation 0.8%
Citigroup Inc. 0.8%
Exxon Mobil Corporation 0.7%
Comcast Corporation 0.7%


Complete list of fund holdings PDF file

Holdings-Based Style Allocations as of December 31, 2016

Style Actual Benchmark Difference
U.S. Equity Securities 88.6% 100% -11.4%
   Large Cap 42.2% 65.7% -23.5%
      Large Cap Core 11.7% 20.0%  
      Large Cap Growth 15.1% 23.4%  
      Large Cap Value 15.4% 22.3%  
   Mid Cap 28.5% 26.3% +2.2%
      Mid Cap Core 7.9% 7.8%  
      Mid Cap Growth 10.0% 7.7%  
      Mid Cap Value 10.6% 10.8%  
   Small Cap 17.9% 8.0% +9.9%
      Small Cap Core 4.0% 2.1%  
      Small Cap Growth 8.4% 2.8%  
      Small Cap Value 5.5% 3.1%  
Alternatives 8.3% 0.0% +8.3%
   Private Equity 4.4% 0.0%  
   Private Real Estate 3.9% 0.0%  
Unassigned 0.3% 0.0% +0.3%
Cash 2.8% 0.0%  

Sector Weightings as of December 31, 2016

Sector weights include Private Equity and Private Real Estate categorized as Alternatives. Cash is equitized. ADRs and non-U.S. Securities are categorized as "other."

Expense Ratio

All expenses of the Fund are deducted from the Fund’s net asset value. The expenses include investment management fees, operating expenses, bank custodial fees and miscellaneous Fund administration expenses. These expenses are paid directly by USEF, and are reflected in the unit price calculated for the Fund. The unit price is multiplied by the number of units held in each client’s account to determine the total value of the client’s holdings in the Fund. For 2015, USEF’s expenses were approximately 0.65% of the Fund’s total assets.

Risk and Disclosures

All investments carry some degree of risk that will affect the value of the Fund’s holdings, its investment performance and the price of its units. As a result, loss of money is a risk of investing in the fund. USEF is subject to the following principal investment risks: market risk, investment style risk, security-specific risk, country risk, currency risk, derivatives risk and liquidity risk.

For further discussion of the Fund’s investments strategies and risks, please refer to "Principal Investment Strategies and Principal Investment Risks of the Funds — US Equities Fund" in the Wespath Investment Funds Description.


Lending of Portfolio Securities

The Fund seeks to earn additional income by lending a portion of its portfolio securities to brokers, dealers and other financial institutions. The loans are secured at all times by cash and liquid high-grade debt obligations. As with any extension of credit, there are risks of delay in recovery and in some cases even loss of rights in the collateral should the borrower fail financially. In additionally, losses could result from the reinvestment of the cash collateral received on loaned securities.

Gross of Fees Performance

Since January 1, 2006, Wespath has applied a more diversified investment strategy, including the use of multiple investment managers, in managing USEF. The performance chart and table show the actual compounded annual rate of return of the Fund since January 1, 2006. For years prior to January 1, 2006, the performance chart and table show the actual compounded annual rate of return for the same diversified, multi-manager strategy applied to the U.S. equity segment of other funds managed by Wespath. Please refer to the Wespath Investment Funds Description for additional information regarding performance.

Net of Fees Performance

The net of fees performance for USEF includes the actual compounded annual rate of return for the Fund since January 1, 2001. This includes the actual performance of the Fund from January 1, 2001 to December 31, 2005 when the entire Fund used a passive index strategy. The Fund discontinued using this passive index strategy on January 1, 2006 and replaced it with the diversified multi-manager strategy used by other funds managed by Wespath.

The Fund generally does not invest in companies that derive more than 10% of their revenue from gambling or from the manufacture, sale or distribution of alcoholic beverages, tobacco-related products, adult entertainment, weapons, or the management or operation of prison facilities.

Fund Facts

Inception December 31, 1997
Exp. Ratio 0.65% for 2015
Benchmark Russell 3000™ Index
Fund Assets $6.37 Billion as of February 28, 2017
Index Weight of Stocks Ineligible for Purchase 4.13% as of December 31, 2016
Holdings (PDF) December 31, 2016
Holdings (XLS) February 28, 2017
Unit Price History Wespath Funds Price History
For More Information Investment Funds Description

Fund Managers


Brian Boyer, CFA

Director, Equities
With Wespath since 2003
B.A. and B.E. from Dartmouth College
MBA from The Wharton School at the University of Pennsylvania
CFA Charterholder

Amy Bulger

Manager, Alternative Investments
With Wespath since 2013
B.S. from Northern Illinois University
MBA from the Kellstadt Graduate School of Business at DePaul University

Mark Warren, CFA, CIMA

Manager, Public Equities
With Wespath since 2015
B.S. from Purdue University
CFA Charterholder
CIMA Certification
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