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Fund Overview: Objective, Strategy and Holdings

  • Earn long-term capital appreciation from a broadly diversified portfolio of primarily U.S. stocks.
  • Holds securities of publicly-traded U.S. based real estate investment trusts (REITs), limited partnership interests in private U.S. real estate and other private investments (venture capital, buyouts, etc.) of U.S. companies.
  • Holds equity index futures of U.S. stock indexes.

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
Brian Boyer Image

Brian Boyer, CFA

Director, Private Markets

  • With Wespath since 2003
  • B.A. and B.E. from Dartmouth College
  • MBA from The Wharton School at the University of Pennsylvania
  • CFA Charterholder
Amy Bulger Image

Amy Bulger

Manager, Alternative Investments

  • With Wespath since 2013
  • B.S. from Northern Illinois University
  • MBA from the Kellstadt Graduate School of Business at DePaul University
Mark Warren Image

Mark Warren, CFA, CIMA

Manager, Public Equities

  • With Wespath since 2015
  • B.S. from Purdue University
  • CFA Charterholder
  • CIMA Certification

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 U.S. Equity 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
U.S. Equity Fund 8.53% 29.55% 29.55% 13.66% 10.38% 12.64%
USEF Benchmark4 9.10% 31.02% 31.02% 14.57% 11.24% 13.42%

Universal Comparison

U.S. Equity 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
U.S. Equity Fund 8.7% 30.2% 14.2% 11.0% 13.3%
Median 8.7% 28.9% 13.6% 10.5% 12.9%
Rank in Universe 53rd 36th 40th 40th 37th
# 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 Fund 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 Russell 3000 Index. The index measures the investment performance of the 3,000 largest (based on total market value) U.S. companies, representing approximately 98% of the publicly traded companies available for investment in the U.S. equity market.


Holdings-Based Style Allocations as of December 31, 2019


Style USEF-I Actual (%) USEF-I Benchmark (%) Difference (%)
   U.S. Equity Securities 94.4% 100% -5.6%
   Large Cap 48.2% 68.2% -20.0%
      Large Cap Core 10.4% 16.4%  
      Large Cap Growth 18.6% 30.8%  
      Large Cap Value 19.2% 21.0%  
   Mid Cap 35.0% 25.2% +9.8%
      Mid Cap Core 8.2% 7.7%  
      Mid Cap Growth 13.4% 6.4%  
      Mid Cap Value 13.4% 11.1%  
   Small Cap 11.2% 6.6% +4.6%
      Small Cap Core 1.8% 1.8%  
      Small Cap Growth 7.5% 2.5%  
      Small Cap Value 1.9% 2.3%  
Alternatives 3.6% 0.0% +3.6%
   Private Equity 1.5% 0.0%  
   Private Real Estate 2.1% 0.0%  
Cash 2.0% 0.0% +2.0%

Future asset allocations may be different than those stated above.


Fund Characteristics as of December 31, 2019

  USEF-I3 USEF-I Benchmark
Wgt. Mkt. Cap ($MM) $148,918 $248,972
Price/Earnings 34.4 19.9
Price to Book 3.1 3.4
Dividend Yield4 1.4% 1.7%
# of Stocks 2,548 2,992

Reflects the portion of the fund portfolio that is invested in public equities and REITs.

4 Does not reflect the deduction of fees.

Sector Weightings as of December 31, 2019

USEF-I Sector Weightings

Sector weights include Private Equity and Private Real Estate categorized as Alternatives. Cash is equitized. Other includes U.S. index futures.

Fund Statistics as of December 31, 2019

  USEF-I USEF-I Benchmark
Beta 1.10 1.00
R-Squared 0.98 1.00

Top 10 Stock Holdings as of December 31, 2019

Company Fund % % of USEF-I Benchmark
Microsoft Corporation 1.9% 3.8%
Apple Inc 1.6% 4.1%, Inc.. 1.4% 2.4%
Wells Fargo & Company 1.0% 0.6%
Berkshire Hathaway Inc. 1.0% 1.4%
JPMorgan Chase & Co. 1.0% 1.4%
Facebook, Inc. 1.0% 1.5%
Alphabet Inc. 1.0% 2.5%
Bank of America Corporation 0.9% 0.9%
Citigroup Inc. 0.8% 0.5%


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. 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.

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 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.

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.