Insights and Commentary from Wespath

In this series of articles, the Wespath investment team provides its views on topical issues, market trends and ways it executes an investment program that aspires to produce excellent investment returns aligned with values.
 
Wespath — Adding Value to Portfolio Management – In a 2008 letter to shareholders of Berkshire Hathaway Inc., Chairman of the Board Warren Buffet wrote “Price is what you pay. Value is what you get.” This comment on price and value reflects one of Wespath’s key investment program objectives. Mary Fran Callahan, Wespath's Managing Director of Investment Management, examines how Wespath executes several portfolio management activities that are less visible and yet quietly add value for our clients.
 
The General Board of Pension and Health Benefits and the United Nations’ Principles for Responsible Investment – In 2005, Kofi Annan, then the United Nations Secretary-General, invited the General Board of Pension and Health Benefits of The United Methodist Church (General Board) to join 20 institutional investors in creating the United Nations Principles for Responsible Investment (UNPRI). This document outlines the six Principles and the ways in which the General Board applies them through its Wespath investment management division.
 
The Case for Alternative Investments in a Diversified Portfolio – This white paper by Wespath's director of equities Brian Boyer, CFA, examines two types of alternative investments—real assets and private equity—along with best practices for administering these alternative investments in public equity portfolios. It also describes how Wespath’s alternative investment strategies add value to our public equity portfolios, and how the Wespath investment team has established a solid track record in both real estate and private equity investments.
 
Did Your Asset Manager Choose an Appropriate Benchmark? – This white paper, authored by Stephen Kroah, CFA, Wespath director of fixed income, examines the importance of benchmarks and explains why institutional investors need to take a close look at the benchmarks their investment managers provide to determine whether they are an accurate measure of investment performance.
 
Investor Rationale for Responsible Investment – As an institutional investor, Wespath Investment Management adheres to our obligation as a prudent fiduciary. As a division of the General Board of Pension and Health Benefits of The United Methodist Church, we also understand that financial transactions carry ethical implications. These two perspectives form the basis of our well-rounded investment strategy, which utilizes traditional financial metrics and also considers the investment risk caused by environmental, social and corporate governance (ESG) practices. The topics covered in the Investor Rationale for Responsible Investment document are also available as individual PDFs:
 
Positive Social Purpose Investing: Finding Uncommon Value – This white paper, authored by Michael Lohmeier, Wespath Director of the Positive Social Purpose (PSP) Lending Program, discusses opportunities for Wespath investors to find value and earn excess returns. The PSP Lending Program has an exemplary track record of providing strong returns and a positive social impact in communities around the globe.
 
Asset Manager Due Diligence and Monitoring – Authored by Mary Fran Callahan, Wespath Managing Director of Investment Management, this white paper discusses the importance of asset manager due diligence and monitoring. At Wespath, this is a collaborative process subject to extensive cross-functional oversight. In addition to carefully evaluating an investment manager’s people, philosophy, process, and the other traditional factors, we also evaluate the asset managers’ integration and consideration of environmental, social and governance (ESG) factors in the investment decision process.
 
The Responsible Investing Penalty: Myth or Reality? – This white paper, authored by Wespath Chief Investment Officer Dave Zellner, discusses the importance of environmental, social and governance (ESG) issues as they relate to corporate responsibility and long-term sustainable business practices. Increasingly, institutional investors have come to recognize that an understanding of ESG factors is critical to evaluating business sustainability and contributes to investment performance.

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