U.S. Treasury Inflation Protection Fund (USTPF)

Fund Objective, Strategy and Holdings

U.S. Treasury Inflation Protection Fund (USTPF) seeks to provide investors with current income and to protect principal from long-term loss of purchasing power due to inflation by investing primarily in U.S. Treasury Inflation Protected Securities (TIPS).
 

Management

Neuberger Berman Investment Advisers is the primary subadviser of USTPF. The fund employs a passive investment strategy. The performance benchmark for USTPF is the Bloomberg Barclays U.S. Inflation Linked Bond Index. USTPF may use a sampling approach as an efficient and cost-effective alternative for creating a portfolio that closely matches the overall characteristics of the performance benchmark without investing in all of the fixed income securities in the benchmark.

Asset Manager

* Signatory to the United Nations Principles for Responsible Investment

U.S. TIPS Performance in Wespath’s Inflation Protection Fund

Neuberger Berman Investment Advisers LLC has managed a portfolio of U.S. TIPS in Wespath’s Inflation Protection Fund since January 31, 2004 (“U.S. Treasury Inflation Linked Assets“).

The following table provides some indication of the risk of investing in USTPF by showing the performance track record for the U.S. Treasury Inflation Linked Assets as compared with those of the Bloomberg Barclays U.S. Inflation Linked Bond Index.

Compounded Annual Return for the Periods Ending December 31, 2016, Net-of-Fees* 1 year 5 years 10 years Since Inception (1/31/2004)
U.S. Treasury Inflation Linked Assets 4.69% 0.56% 4.26% 4.09%
Bloomberg Barclays U.S. Inflation Linked Bond Index 4.85% 0.93% 4.42% 4.30%

* The net-of-fees returns are calculated using an estimated fee of 0.34% annual expense ratio. The table assumes reinvestment of distributions. Historical returns are not indicative of future performance. The fund is neither insured nor guaranteed by the U.S. government.

Fund Characteristics as of September 30, 2017

  USTPF USTPF
Benchmark
Effective Duration 8.40 8.51
Effective Convexity 1.26 1.29
Yield to Worst 0.39% 0.36%
Effective Maturity 9.08 9.03
Average Quality Aaa Aaa
 

Performance Review

The U.S. Treasury Inflation Protection Fund is a passively-managed fund designed to closely match the fund benchmark less fees and expenses. During the third quarter of 2017, the fund performed in line with its benchmark.

Performance, Net of Fees - December 31, 2017

  3 mo YTD 1 yr 3 yr 5 yr 10 yr
U.S. Treasury Inflation
Protection Fund
1.36%
N/A
N/A
N/A
N/A
N/A
Benchmark*
1.41%
N/A
N/A N/A
N/A
N/A

*The performance benchmark for USTPF is the Bloomberg Barclays U.S. Inflation Linked Bond Index.


See Risk and Disclosures for more information regarding net-of-fees performance.

 

´╗┐Fund Distribution by Credit Quality as of September 30, 2017

USTPF chart 3


Expense Ratio

USTPF’s inception date is June 30, 2017. USTPF's estimated annual expenses for 2017 are approximately 0.34% of the fund’s total assets. Estimated expenses assume an initial fund size of $625 million. Actual expenses for the fund may be different than these estimated expenses.

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 USTPF, 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.

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. USTPF is subject to the following principal investment risks: credit risk, deflation risk, interest rate risk, market risk, security-specific risk and yield curve risk.

Historical returns are not indicative of future performance. For further discussion of the Fund’s investments strategies and risks, please refer to Supplement #2 to 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 addition, losses could result from the reinvestment of the cash collateral received on loaned securities.

Fund Facts

Inception June 30, 2017
Exp. Ratio 0.34% for 2017 (estimated; for more information see the Expense Ratio section below)
Benchmark Bloomberg Barclays U.S. Inflation Linked Bond Index
Fund Assets $0.66 Billion as of December 31, 2017
Holdings September 30, 2017
Unit Price History Wespath Funds Price History
For More Information Supplement #2 and Supplement #5 to the 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
 
 
 
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