Equity Social Values Plus Fund (ESVPF)

Fund Performance (Net)
Risk and Disclosures


Fund Objective, Strategy and Holdings

The Equity Social Values Plus Fund (ESVPF) seeks to attain long-term capital appreciation from a passively-managed portfolio of U.S. and non-U.S. domiciled publicly owned companies that fulfills investor preferences for a heightened focus on corporate environmental and social performance.

Management

ESVPF, in response to the concerns expressed in petitions approved by a threshold number of annual conferences, excludes companies with fossil fuel reserves used for energy purposes. Additionally, and in response to the concerns expressed in petitions approved by a threshold number of annual conferences, ESVPF excludes specific companies that are the subject of annual conference resolutions concerning peace in the Middle East. Both the Fiduciary Committee and the UMC Principles Committee of Wespath’s board of directors have approved these additional exclusions.

Like Wespath’s other funds, ESVPF 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.

Asset Manager

  • Northern Trust Global Investments*

Northern Trust Global Investments (NTGI) is ESVPF’s primary subadviser. ESVPF employs a passive equity strategy. The performance benchmark for ESVPF is the MSCI World Environmental, Social and Governance (ESG) ex Fossil Fuels Index, which is a global index of companies with highly rated environmental, social and governance practices excluding companies with fossil fuel reserves used for energy purposes. MSCI ESG Research, an internationally recognized expert in evaluating corporate environmental, social and governance policies and practices and the provider of the MSCI World ESG ex Fossil Fuels Index, will identify companies with highly rated sustainable policies and practices for inclusion in the performance benchmark. However, MSCI ESG Research specifically excludes companies with fossil fuel reserves used for energy purposes from the performance benchmark.

* Signatory to the United Nations Principles for Responsible Investment

Research and Index Provider

  • MSCI ESG Research

Performance Review

ESVPF is a passively managed fund designed to closely match the fund’s benchmark, less fees and expenses. Relative performance is affected by the fund’s daily valuation policy (see here).

Fund Holdings as of September 30, 2017

Top 10 Stock Holdings

Company Fund %
Microsoft Corporation 2.8%
Johnson & Johnson 1.8%
Alphabet Inc. 1.6%
Procter & Gamble Company 1.2%
Verizon Communications Inc. 1.0%
Novartis AG 1.0%
Coca-Cola Company 1.0%
Intel Corporation 0.9%
Roche Holding Ltd Genusssch. 0.9%
Merck & Co., Inc. 0.9%

 

Complete list of fund holdings PDF file

Characteristics as of September 30, 2017

ESVPF_chart2


Fund Statistics - September 30, 2017

  ESVPF Benchmark**
Wgt. Mkt. Cap ($MM) $94,152 $94,905
Price/Earnings Weighted Average 20.1 20.2 
Price to Book 2.6 2.7 
Dividend Yield 2.5% 2.5% 
# of Stocks 765 785 

 

** The benchmark is the MSCI World Environmental, Social and Governance (ESG) ex Fossil Fuels Index


Performance, Net of Fees - September 30, 2017

  3 mo YTD 1 yr 3 yr 5 yr 10 yr
Equity Social Values Plus Fund
4.45%
15.95%
17.21%
N/A
N/A
N/A
Benchmark*
4.66%
15.83%
17.24% N/A
N/A
N/A


* On April 1, 2017, the benchmark for the Equity Social values Plus Fund became the MSCI World Environmental, Social and Governance (ESG) ex Fossil Fuels Index. Prior to April 1, 2017, the benchmark was the MSCI World Custom Environmental, Social, and Governance (ESG) Special Weighted Index.

Risk and Disclosures

ESVPF is designed for investors who have a heightened focus on corporate environmental and social performance, seek long-term investment growth through exposure to the U.S. and non-U.S. public equities of companies, and are willing to accept the risk of wide fluctuations in the unit price of the fund.

All investments carry some degree of risk that will affect the value of ESVPF’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. ESVPF 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. Additionally, ESVPF is subject to modestly increased diversification risk, as compared to broad-market passively-managed equity funds, as a result of the exclusion of a significant number of stocks from the investment universe (i.e., the exclusion of companies with fossil fuel reserves used for energy purposes).

For further discussion of the Fund’s investments strategies and risks, please refer to the Wespath Investment Funds Description.

Valuation of ESVPF Units

In the daily valuation of ESVPF units, Wespath uses a valuation methodology to capture changes in non-U.S. securities values that arise because of time-zone differences among global securities markets. Many non-U.S. securities trade on exchanges that close several hours before ESVPF’s closing unit price is calculated in the United States, generally at 4 p.m. Eastern time. In the hours between the close of the non-U.S. markets and the close of the U.S. market, the value of the non-U.S. securities may change due to a variety of factors including, for example, company-specific announcements or market-wide developments. ESVPF’s daily return may diverge from the daily return of its benchmark index, in part, because the benchmark index values do not reflect such price adjustments.

Lending of Portfolio Securities

ESVPF 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.

Revised Investment Guidelines Effective April 1, 2017

The MSCI World Environmental, Social and Governance (ESG) ex Fossil Fuels Index became ESVPF’s benchmark on April 1, 2017. To read more about this change, click here.

 

Fund Facts

Inception December 31, 2014
Exp. Ratio 0.61% for 2016
Benchmark MSCI World Environmental, Social and Governance (ESG) ex Fossil Fuels Index
Fund Assets $0.07 Billion as of October 31, 2017
Holdings September 30, 2017
Unit Price History Wespath Funds Price History
For More Information Investment Funds Description
 


Fund Managers

brian_boyer

Brian Boyer, CFA

Director, Equities
With Wespath since 2003
B.A. and B.E. from Dartmouth College
MBA from The Wharton School at the University of Pennsylvania
CFA Charterholder
  
mark_warren

Mark Warren, CFA, CIMA

Manager, Public Equities
With Wespath since 2015
B.S. from Purdue University
CFA Charterholder
CIMA Certification
 
 
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