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Fund Overview: Objective, Strategy and Holdings

  • Earn current income by investing in a broadly diversified portfolio of fixed-income instruments.
  • Holds publicly traded U.S. fixed income securities, and fixed income securities denominated in currencies other than the U.S. dollar.
  • Holds privately placed loans originated by the Positive Social Purpose Lending Program (e.g., affordable housing and community development loans).
  • 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 Managers

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

Frank Holsteen Image

Frank Holsteen

Director, Public Equities and Fixed Income

  • With Wespath since 2012
  • B.A. from Lake Forest College
Nízida Arriaga Image

Nízida Arriaga, CFA

Manager, Fixed Income

  • With Wespath since 2019
  • Bachelor's degree from the University of Puerto Rico-Mayagüéz
  • MBA from the University of Wisconsin-Madison


The Fund invests with six different investment management firms that use a combination of active and enhanced management styles. Wespath’s Positive Social Purpose Lending Program makes up roughly 10% of the Fund’s allocation.

External Asset Managers

* 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.

Fund Snapshot
Inception January 1, 2019
Exp. Ratio 0.47% for 2019 (Estimated)
Benchmark Bloomberg Barclays US Universal (ex mortgage backed securities)
Fund Assets $638 Million as of January 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.

Related Fund Performance

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.

Related Fund Performance, Net of Fees (as of 12/31/2019 )

  3 mo YTD 1 yr 3 yr 5 yr 10 yr
Fixed Income Fund 0.88% 10.23% 10.23% 5.12% 3.79% 4.65%
FIF Benchmark4 0.38% 10.19% 10.19% 4.62% 3.70% 4.47%

Universal Comparison

Fixed Income Fund-I Series 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
Fixed Income Fund 1.0% 10.8% 5.7% 4.3% 5.2%
Median 0.5% 9.2% 4.5% 3.7% 4.8%
Rank in Universe 19th 35th 29th 35th 38th
# of Observations 310 300 268 255 162

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. fixed income manager asset pools. BNY Mellon provides a fund-level tracking service used to compare the Fixed Income Fund’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.

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


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 December 31, 1997. 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.

4 The Related Fund performance benchmark is the Bloomberg Barclays U.S. Universal Index (excluding mortgage backed securities. The index consists of the U.S. Aggregate Bond Index, the U.S. High-Yield Corporate Index, the 144A Index, the Eurodollar Index, the Emerging Markets Index and the non-ERISA portion of the CMBS Index. Non-dollar denominated issues are excluded from the index. ). On August 24, 2016 Bloomberg acquired the ownership of the indices from Lehman. Hence, the name for the benchmark was the Lehman U.S. Universal Index (excluding mortgage backed securities) from January 1, 2006 to August 3, 2016.


As of December 31, 2019

Sector FIF-I Actual
FIF-I Benchmark
Asset-Backed Securities 2.4% 0.0% +2.4%
Commercial Mortgage-Backed Securities 8.6% 1.5% +7.1%
Emerging Market Debt 10.7% 8.1% +2.6%
High Yield 9.9% 5.8% +4.1%
Mortgage-Backed Securities 13.1% 1.5% +11.6%
Non-U.S. Corporate 7.9% 9.0% -1.1%
Non-U.S. Government 4.7% 5.0% -0.3%
Term Loans 0.2% 0.0% +0.2%
U.S. Corporate 24.7% 24.1% +0.6%
U.S. Government -10.1% 1.3% -11.4%
U.S. Treasuries 17.6% 43.0% -25.4%
Affordable Housing (WII) 6.2% 0.0% +6.2%
Other (alternatives and cash) 4.1% 0.7% +3.4%

Asset allocations are preliminary and subject to change. Future asset allocations may be different than those stated above.


Fund Characteristics as of December 31, 2019

  FIF-I FIF-I Benchmark
Effective Duration 6.02 6.41
Effective Convexity 0.04 0.83
Yield to Worst* 3.3% 2.6%
Effective Maturity 8.18 8.77

* Does not reflect the deduction of fees.

Fund Distribution by Credit Rating as of December 31, 2019

FIF-I Fund Distribution by Credit Rating

Risks & 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. FIF-I is subject to the following principal investment risks: market risk, investment style risk, security-specific risk, credit risk, country risk, currency risk, derivatives risk, interest rate risk, liquidity risk and prepayment 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 — Fixed Income Fund-I Series" in the Investment Funds Description – I Series. This is not an offer to purchase securities.

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 addition, losses could result from the reinvestment of the cash collateral received on loaned securities.

Expense Ratio

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.