U.S. Equity Fund (USEF)

Fund Characteristics
Fund Performance (Gross)
Fund Performance (Net)
Risk and Disclosures

Fund 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.

Management

The U.S. Equity Fund (USEF) invests with investment managers that specialize in broadly diversified strategies. USEF also invests with more than a dozen general partners through its real estate and private equity investments. Over 30% of the Fund is invested in passive strategies while the remainder is actively managed. These managers rely on professional judgment that involves the use of fundamental analysis to select securities. They seek to invest in attractively valued companies that represent above-average long-term investment opportunities. Each active manager has an objective to outperform specific performance benchmarks related to their investment style.

Asset Managers

* Signatory to the United Nations Principles for Responsible Investment

 

Performance Review as of June 30, 2018

Year-to-date, the fund’s positive benchmark-relative performance was mainly due to two growth-oriented managers’ investments in e-commerce, biotech and healthcare equipment companies. The fund’s strategic overweight to small- and mid-sized companies, and corresponding underweight to large company stocks, contributed positively to benchmark-relative performance. The fund also benefited from not holding underperforming tobacco stocks, which are excluded under Wespath’s Ethical Exclusions policy.

Fund Performance

Universe Performance Comparison, Gross of Fees

 

U.S. Equity Fund – June 30, 2018

USEF-chart1
 
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 Wespath's 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. Source: BNY Mellon.
 

See Risks and Disclosures for more information regarding Gross of Fees Performance.

 

Performance, Net of Fees - June 30, 2018

  3 mo YTD 1 yr 3 yr 5 yr 10 yr
U.S. Equity Fund
5.06%
5.43%
16.08%
11.31%
12.97%
9.76%
Russell 3000 Index
3.89%
3.22%
14.78% 11.58%
13.29%
10.23%
 

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

 

Fund Statistics as of June 30, 2018

  USEF2 Benchmark
Wgt. Mkt. Cap ($MM) $121,112 $179,863
Price/Earnings 29.7 23.4
Price to Book 2.5 2.7
Dividend Yield3 1.3% 1.8%
# of Stocks 2,195 3,008
 
2 Reflects the portion of the fund portfolio that is invested in public equities and REITs.
 
3 Does not reflect the deduction of fees.
 

Risk Characteristics as of June 30, 2018

Statistics (trailing 5 years) USEF Benchmark
Beta 0.98 1.00  
R-Squared 0.98 1.00  
 

Fund Holdings as of June 30, 2018

Top 10 Stock Holdings

Company Fund % % of USEF Benchmark
Amazon.com, Inc.. 1.8% 2.5%
Apple Inc 1.7% 3.3%
Microsoft Corporation 1.7% 2.7%
Alphabet Inc. 1.2% 2.4%
Facebook, Inc. 1.2% 1.6%
JPMorgan Chase & Co. 0.9% 1.3%
Bank of America Corp. 0.8% 1.0%
Wells Fargo & Co. 0.8% 0.9%
Netflix, Inc. 0.7% 0.6%
Visa Inc. 0.7% 0.8%

 

Complete list of fund holdings PDF file
 

Holdings-Based Style Allocations as of June 30, 2018

Style USEF Actual (%) USEF Benchmark (%) Difference (%)
U.S. Equity Securities 91.9% 100% -8.1%
   Large Cap 42.3% 66.0% -23.7%
      Large Cap Core 10.5% 19.2%  
      Large Cap Growth 16.5% 24.7%  
      Large Cap Value 15.3% 22.1%  
   Mid Cap 32.9% 26.2% 6.7%
      Mid Cap Core 7.9% 7.6%  
      Mid Cap Growth 13.1% 7.0%  
      Mid Cap Value 11.9% 11.6%  
   Small Cap 16.7% 7.8% 8.9%
      Small Cap Core 4.1% 2.0%  
      Small Cap Growth 8.0% 2.9%  
      Small Cap Value 4.6% 2.9%  
Alternatives 6.2% 0.0% 6.2%
   Private Equity 3.9% 0.0%  
   Private Real Estate 2.3% 0.0%  
Cash 1.9% 0.0% 1.9%
 


Sector Weightings as of June 30, 2018

USEF_chart3
Sector weights include Private Equity and Private Real Estate categorized as Alternatives. Cash is equitized. Other includes U.S. index futures.
 

Expense Ratio

All expenses of the Fund are deducted from the Fund’s net asset value. The expenses include investment management fees, operating expenses, bank custodial fees and miscellaneous Fund administration expenses. These expenses are paid directly by USEF, 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 2017, USEF’s expenses were approximately 0.62% 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. USEF 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" in the Wespath Investment Funds Description. This is not an offer to purchase securities. Offers will only be made through the 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 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.

Fund Facts

Inception December 31, 1997
Exp. Ratio 0.62% for 2017
Benchmark Russell 3000™ Index
Fund Assets $7.11 Billion as of July 31, 2018
Index Weight of Stocks Ineligible for Purchase 3.86% as of June 30, 2018
Holdings (PDF) June 30, 2018
Holdings (XLS) July 31, 2018
Unit Price History Wespath Funds Price History
For More Information Summary Prospectus (USEF) and Investment Funds Description (All Funds)
 

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
 
amy_bulger01

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

Mark Warren, CFA, CIMA

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