The following individuals are responsible for the selection and monitoring of external asset managers:
Brian Boyer, CFA
Mark Warren, CFA, CIMA
* Signatory to the United Nations Principles for Responsible Investment
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||0.54% for 2019 (Estimated)|
|Benchmark||Russell 3000™ Index|
|Fund Assets||$695 Million as of March 31, 2020|
|Holdings||Holdings as of December 31, 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.|
|3 mo||YTD||1 yr||3 yr||5 yr||10 yr|
|U.S. Equity Fund-I Series||-21.68%||-21.68%||-11.99%||-||-||-|
|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|
|U.S. Equity (USEF) Strategy||-21.68%||-21.68%||-11.99%||3.12%||4.78%||9.40%|
|USEF Strategy Benchmark3||-20.90%||-20.90%||-9.13%||4.00%||5.77%||10.15%|
U.S. Equity Strategy4 vs. Peer Group Universe
|QTD||1 Year||3 Year||5 Year||10 Year|
|U.S. Equity Strategy||8.7%||30.7%||14.4%||11.1%||13.3%|
|Rank in Universe||49th||30th||38th||38th||35th|
|# of Observations||309||286||254||246||155|
Peer Group Performance Comparison and Annualized Performance (Gross-of-Fees) data as of December 31, 2019.
Source: BNY Mellon. The adjacent chart represents the range of investment returns for the BNY Mellon Master Trust Universe (Universe) for U.S. Equity manager asset pools. BNY Mellon provides a fund-level tracking service used to compare the 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.
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.
|Style||USEF-I Actual (%)||USEF-I Benchmark (%)||Difference (%)|
|U.S. Equity Securities||94.4%||100%||-5.6%|
|Large Cap Core||10.4%||16.4%|
|Large Cap Growth||18.6%||30.8%|
|Large Cap Value||19.2%||21.0%|
|Mid Cap Core||8.2%||7.7%|
|Mid Cap Growth||13.4%||6.4%|
|Mid Cap Value||13.4%||11.1%|
|Small Cap Core||1.8%||1.8%|
|Small Cap Growth||7.5%||2.5%|
|Small Cap Value||1.9%||2.3%|
|Private Real Estate||2.1%||0.0%|
Future asset allocations may be different than those stated above.
|Wgt. Mkt. Cap ($MM)||$148,918||$248,972|
|Price to Book||3.1||3.4|
|# of Stocks||2,548||2,992|
3 Reflects the portion of the fund portfolio that is invested in public equities and REITs.
4 Does not reflect the deduction of fees.
Sector weights include Private Equity and Private Real Estate categorized as Alternatives. Cash is equitized. Other includes U.S. index futures.
|Company||Fund %||% of USEF-I Benchmark|
|Wells Fargo & Company||1.0%||0.6%|
|Berkshire Hathaway Inc.||1.0%||1.4%|
|JPMorgan Chase & Co.||1.0%||1.4%|
|Bank of America Corporation||0.9%||0.9%|
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-I 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.
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 — U.S. Equity 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 additionally, 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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