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Fund Overview: Objective, Strategy and Holdings

  • The Multiple Asset Fund I-Series seeks to maximize long-term investment returns, including current income and capital appreciation, while reducing short-term risk by investing in a broad mix of investments.
  • Holds a pre-specific allocation of units of the following Wespath fund: Fixed Income Fund-I Series (FIF-I), Inflation Protection Fund-I Series (IPF-I), International Equity Fund-I Series (IEF-I), and U.S. Equity Fund-I Series (USEF-I).

Fund Managers

The following individuals are responsible for the selection and monitoring of external asset managers:

Dave Zellner image

David H. Zellner

Chief Investment Officer

  • With Wespath since 1997
  • Co-authored the United Nations Principles for Responsible Investment (UNPRI)
  • B.S. in finance from Louisiana State University
  • MBA from the University of Houston

Management

The Multiple Asset Fund-I Series (MAF-I), through its investment in the four other Wespath Institutional Investments funds, participates in the management styles of more than 35 different investment management firms. These managers provide the fund with broad diversification of holdings in a variety of U.S. and non-U.S. securities. These include stocks, traditional bonds, inflation-linked bonds, real estate investment trusts, securities, commodities, and interests in private equity and private real estate partnerships. In addition, through FIF-I, MAF-I holds participation interests in loans originated through the Positive Social Purpose Lending Program.

Please refer to the Investment Funds Description – I Series for a detailed description of the investment strategies used in managing the Fund.


* The Multiple Asset Fund-I Series performance benchmark is a blended benchmark comprised of 35% Russell 3000 Index, 30% MSCI All Country World Index (ACWI) ex-USA Investable Market Index (IMI), 25% Bloomberg Barclays U.S. Universal Index ex-Mortgage Backed Securities (MBS) and 10% IPF-I performance benchmark. The IPF-I performance benchmark consists of a blended benchmark comprised of 80% Bloomberg Barclays World Government Inflation Linked Bond Index (Hedged), 10% Bloomberg Barclays Emerging Market Tradeable Inflation Linked Bond Index (Unhedged) and 10% Bloomberg Commodity Index.

Performance

Fund1,2 Performance, Net-of-Fees (as of 06/30/2020 )

  3 mo YTD 1 yr 3 yr 5 yr 10 yr
Multiple Asset Fund-I Series 17.16% -1.30% 4.75% - - -
MAF-I Benchmark3 14.49% -2.82% 3.73% - - -

Strategy1,4 Performance, Net-of-Fees (as of 06/30/2020 )

As represented solely by the I Series4 As represented by the I Series beginning 1/1/19, as represented by the P Series prior to 1/1/19
  3 mo YTD 1 yr 3 yr 5 yr 10 yr
Multiple Asset (MAF) Strategy 17.16% -1.30% 4.75% 6.87% 6.59% 8.51%
MAF Strategy Benchmark3 14.49% -2.82% 3.73% 5.88% 6.24% 8.51%

Universe Comparison

Multiple Asset Strategy4 vs. Peer Group Universe

Peer Group Performance Comparison

Peer group performance comparison

Annualized Performance (Gross-of-Fees)

  QTD 1 Year 3 Year 5 Year 10 Year
Multiple Asset Strategy -15.6% -6.8% 3.2% 3.9% 6.8%
Median -10.9% -2.1% 3.9% 4.1% 6.7%
Rank in Universe 90th 87th 64th 56th 49th
# of Observations 517 506 467 430 343

Peer Group Performance Comparison and Annualized Performance (Gross-of-Fees) data as of March 31, 2020.

Source: BNY Mellon. The adjacent chart represents the range of investment returns for the BNY Mellon Master Trust Universe (Universe) total fund composites. BNY Mellon provides a fund-level tracking service used to compare the Multiple Asset Strategy's actual gross-of-fees performance to the performance of similar asset pools of other institutional investors. The universe includes corporate, foundation, endowment, public, Taft-Hartley and health care plans.


Footnotes

See Risks and Disclosures for more information regarding net-of-fees performance.

1 The performance shown is for the stated time period only. Historical returns are not indicative of future performance. Investment performance is presented net-of-fees—that is, with the deduction of external investment management fees, custody fees, and administrative and overhead expenses. The investments of the Funds and Strategies may vary substantially from those in the applicable benchmark. The benchmarks are based on broad-based securities market indices, which are unmanaged, cannot be invested in and are not subject to fees and expenses typically associated with investment funds. Investments cannot be made directly in an index. This chart was produced using data from sources believed to be accurate. The bar chart and table assume reinvestment of distributions.

2 Please refer to the Investment Funds Description - I Series for more information about each Fund. This information is for informational purposes only and is not an offer to purchase securities. The investment funds are neither insured nor guaranteed by the government.

3 Benchmark descriptions can be found here.

4 The performance presented reflects the historical performance record of the strategy employed by: (a) Wespath Institutional Investments (WII) through funds called the I Series funds available as of January 1, 2019; and (2) an affiliated entity through funds called the P Series funds and available to certain Institutional Investors (as defined below) prior to January 1, 2019. The strategy for the applicable P Series fund before January 1, 2019 and the strategy for the applicable I Series fund have substantially similar investment objectives and investment strategies and are referred to collectively as “the Strategy.” Thus, the Strategy performance presented reflects the actual returns of the applicable P Series fund through December 31, 2018, and the actual returns of the applicable I Series fund from January 1, 2019 onward. The performance of the applicable P Series fund after January 1, 2019 is excluded from the performance of the Strategy because, as of January 1, 2019, all Institutional Investors invest in the Strategy through the I Series fund. The P Series funds are not available to Institutional Investors other than in exceptional circumstances agreed to by the P Series funds adviser.

Historical returns are not indicative of future performance. Except as otherwise noted, the Strategy performance is net-of-fees—that is, with the deduction of investment management fees, custody fees, and administrative and overhead expenses. The I Series funds’ fees and expenses are described in the Investment Funds Description – I Series, and the P Series funds’ fees and expenses are described in the Investment Funds Description - P Series. The performance shown is for the stated time periods only. Differences in timing of transactions and market conditions prevailing at the time of investment by the applicable I Series or P Series fund could lead to divergence between the results of the I Series and P Series fund. The future performance of the I Series funds may be better or worse than the performance of the P Series funds. Factors that could affect performance differences between the I Series funds and the P Series funds include, but are not limited to, portfolio composition, strategy constraints, investor universe, size of the portfolio, fees, expenses and the timing of cash flows.

Units of the I Series funds are available to organizations related to The United Methodist Church and organized and operated exclusively for religious, educational, benevolent, fraternal, charitable, or reformatory purpose: (1) no part of the net earnings of which inures to the benefit of any private shareholder or individual; or (2) which is or maintains certain pooled income funds, collective trust funds, collective investment vehicles or similar funds for the collective investment and reinvestment of assets of certain designated vehicles available for charitable investments. All such organizations shall qualify as permissible investors in a fund excepted from the definition of “investment company” contained in Section 3(c) (10) of the Investment Company Act of 1940, as amended (and are referred to as “Institutional Investors”). Certain, but not all, Institutional Investors were eligible to invest in the P Series prior to January 1, 2019.

Allocations

Fund Allocations as of December 31, 2019

MAF-I Fund Allocations

Fund Allocations* Target Range Actual
U.S. Equity Fund-I Series (USEF-I) 32%-38% 35.5%
International Equity Fund-I Series (IEF-I) 27%-33% 30.2%
Fixed Income Fund-I Series (FIF-I) 22%-28% 24.4%
Inflation Protection Fund-I Series (IPF-I) 7%-13% 9.4%
Cash 0%-2% 0.5%

* As of December 31, 2019. Future asset allocations may be different than those stated above.

During aberrant market conditions, WII may temporarily elect to suspend rebalancing back to the pre-specified mix. WII will resume rebalancing once market conditions have improved. MAF-I residual cash is invested in the Short Term Investment Fund - I Series (STIF-I).

Risks & Disclosures

All investments carry some degree of risk that will effect 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. MAF-I is subject to the following principal investment risks: market risk, investment style risk, security-specific risk, credit risk, country risk, currency risk, deflation risk, derivatives risk, interest rate risk, and liquidity risk.

Historical returns are not indicative of future performance. For further discussion of the Fund's investments strategies and risks, please refer to "Principal Investment Strategies - Multiple Asset Fund I-Series" in the Investment Funds Description - I Series, as well as the web pages for the four underlying funds. This is not an offer to purchase securities.

Lending of Portfolio Securities

The fund seeks to earn additional income bylending 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 addition, losses could result from the reinvestment of the cash collateral received on loaned securities.


Expense Ratio

The Annual Fund Operating Expenses information set forth above is based on actual asset balances, fees and expenses, and various other factors. This information is as of December 31, 2019. The Fund Manager expects that the Annual Fund Operating Expenses for 2020 will not be materially different. There is no guarantee that the Fund’s actual Annual Fund Operating Expenses will match the amounts reflected. Actual Annual Fund Operating Expenses may vary depending on, among other things, market events, Fund size, transaction costs, timing of Fund inflows and outflows, and applicable third party fees.

All fees and expenses of the Fund are deducted from the Fund's net asset value. The fees and expenses paid by the Fund include external investment management fees paid to subadvisors, and the fund's prorated portion of the bank custodial fees and administrative and overhead expenses incurred by the overall Wespath Benefits and Investments (WBI) organization in connection with providing investment, operating and administrative support to the Fund and other funds, and the cost of WBI's and it's subsidiaries' other activities and operations. These expenses are paid directly by the Fund, and are reflected in the unit price calculated for the Fund. The unit price is multipolied by the number of units held in each client's account to determine the total value of the client's holdings in the Fund. More information about the calculation of these fees and expenses is available in the definition of Expense Ratio set forth in the Glossary of Terms of the Investment Funds Description - I Series.