The following individuals are responsible for the selection and monitoring of external asset managers:
Wespath Institutional Investments is the investment adviser to the Fund. Through exposure to the assets in the sweep account, the Fund seeks diversification across sectors, industries, issuers, and credit quality. Standish Mellon Asset Management is the primary investment subadviser to the sweep account. The sweep account holdings include U.S. government and agency bonds, corporate bonds, securitized products, dollar denominated international fixed income securities, commercial paper, certificates of deposit, and other similar types of investments. The sweep account also holds loans from our Positive Social Purpose Lending Program (program that focuses on affordable housing, charter schools, and community development facilities). The sweep account is designed to maintain liquidity to ensure availability of cash for withdrawals and consequently provide liquidity for the Short Term Investment Fund-I Series. The individual security quality in the sweep account can range from AAA to A as rated by Moody’s, Standard & Poor’s or Fitch, though the sweep account may hold lower-rated securities from time to time.
For the sweep account as a whole, the combined holdings of securities from one issuer, not including U.S. Treasuries and government agency securities, may not constitute more than 10% of the Fund or $20 million, whichever is greater. The dollar weighted average life for the Sweep Account may not exceed 1.5 years, and no instrument with a maturity greater than 3.1 years is permitted.
Please refer to the Investment Funds Description – I Series for a detailed description of the investment strategies used in managing the Fund.
|Inception||January 1, 2019|
|Exp. Ratio||0.32% for 2019 (Estimated)|
|Benchmark||Bank of America Merrill Lynch 3-Month Treasury Bill Index|
|Fund Assets||$20 Million as of December 31, 2019|
|Holdings||Holdings as of September 30, 2019|
|Unit Price History||I Series Price History|
|For More Information||Summary Fund Descriptions - I Series and Investment Funds Description - I Series and the related Statement of Additional Information.|
The Fund commenced operations on January 1, 2019 and, as a result, performance information for the Fund is not presented herein. The information in the charts below does not represent the performance of the Fund. The Fund is advised by the Fund Manager. The Fund Manager is related to UMC Benefit Board, Inc., which serves as the adviser to the Fixed Income Fund (the “Related Fund”). The Related Fund is managed, and has historically been managed, with substantially similar investment styles, objectives, policies, and strategies to those that are used to manage the Fund. The Adviser and the adviser to the Related Fund are part of the overall Wespath organization and rely on certain Wespath Benefits and Investments shared employees, including internal fund managers, and substantially similar sub advisers to execute substantially similar investment strategies on behalf of different categories of investors.
The Fund is providing this related performance information because of the similarities between the Fund and the Related Fund. This information may be helpful in evaluating the Fund’s risks by demonstrating how the Related Fund has performed historically. The performance of the Related Fund is not the performance of the Fund. Future performance of the Fund may be better or worse than the performance of the Related Fund. Factors that could affect performance differences between the Fund and the Related Fund include, but are not limited to, portfolio composition, size of the portfolio, fees, expenses and the timing of cash flow.
|3 mo||YTD||1 yr||3 yr||5 yr||10 yr|
|Short Term Investment Fund||0.46%||2.54%||2.54%||1.68%||1.11%||0.67%|
See Risk 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. Differences in timing of transactions and market conditions prevailing at the time of investment could lead to different results. The past performance of the Related Fund is presented net of fees – that is, with the deduction of external investment management fees, custody fees, and administrative and operating expenses. The inception date of the Related Fund was April 30, 2002. The investments of the Related Fund may vary substantially from those in the Fund benchmark. The benchmark is based on broad-based securities market indices, which are unmanaged and are not subject to fees and expenses typically associated with investment funds. Investors cannot invest directly in the index used as the Fund benchmark.
2 The Related Fund performance benchmark is the BofA Merrill Lynch 3-Month Treasury Bill Index. The index measures the investment performance of the 3-month sector of the U.S. Treasury Bill market.The performance presented in the table above provides the actual returns generated by STIF from the date of its inception, and it includes the performance of Wespath's investments managed with the same strategy prior to the introduction of STIF. At any given time, Wespath invests between $400 and $700 Million in a short term investment strategy. This amount includes all direct investments in the strategy (primarily residual cash) and the assets of the Short Term Investment Fund.
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. STIF-I is subject to the following principal investment risks: market risk, investment style risk, security specific risk, credit risk, interest rate risk, liquidity risk and prepayment 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 and Principal Investment Risks of the Funds — Short Term Investment Fund-I Series" in the Investment Funds Description – I Series. This is not an offer to purchase 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 addition, losses could result from the reinvestment of the cash collateral received on loaned securities.
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.
The estimated expense ratio set forth above is based on projected asset balances, fees and expenses, and various other assumptions. There is no guarantee that the Fund’s actual expense ratio will match this estimate. The fund expense ratio may vary depending on, among other things, market events, portfolio 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 its 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 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. 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.
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