Short Term Investment Fund (STIF)

Fund Availability

STIF is only available to institutional investors.
 

Fund Performance (Net)
Risk and Disclosures

Fund Objective and Strategy

  • Maximize current income consistent with preservation of capital.
  • Holds cash and cash equivalents in the form of units of a daily cash sweep account.
  • In periods of stable and falling interest rates, the short-term fund should outperform funds holding investments with shorter maturities.

Management

Wespath Investment Management 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. 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.

Performance Review

Market expectations for the Federal Reserve (Fed) to gradually increase its Fed funds rate, combined with the impact of Securities and Exchange Commission money market reform rules, have caused money market yields to increase. Higher money market yields create additional opportunity for the Short Term Investment Fund.

View more STIF Earnings Information.

Fund Performance

Performance, Net of Fees - September 30, 2017

 STIF_chart1
 
The accompanying bar chart and table provide some indication of the risk of investing in the fund by showing changes in the fund’s performance from year to year and by showing how the fund’s compounded annual rate of return for 1 and 5 years and since its inception compared with those of its performance benchmark, the Bank of America Merrill Lynch 3-Month Treasury Bill Index. The current universe of comparable mutual funds for STIF is too small for any meaningful comparison. As a result, the performance data above does not show the fund’s investment performance in comparison to the median investment performance of a universe of comparable mutual funds.

 

Expense Ratio

All expenses of STIF are deducted from STIF’s net asset value. The expenses include investment management fees, operating expenses, bank custodial fees and miscellaneous fund administration expenses. The expenses are paid by STIF 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. For 2016, STIF’s expenses were equal to approximately 0.39% of the Fund’s total assets.

Risk and 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. STIF 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.

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" in the Wespath Investment Funds Description.
 

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.

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 Facts

Inception April 30, 2002
Exp. Ratio 0.39% for 2016
Benchmark Bank of America Merrill Lynch 3-Month Treasury Bill Index
Fund Assets $0.18 Billion as of October 31, 2017
Holdings September 30, 2017
For More Information Investment Funds Description
 

Fund Managers

frank-holsteen

Frank Holsteen

Director, Fixed Income
With Wespath since 2012
B.A. from Lake Forest College
 
 
constance-christian

Constance Christian, CFA

Manager, Fixed Income
With Wespath since 2016
BSBA and MBA from Xavier University
MA from DePaul University
 
 
 
©2017 Wespath Investment Management, a division of Wespath Benefits and Investments, a general agency of The United Methodist Church. All Right Reserved.