Fund Managers

The following individuals are responsible for the selection and monitoring of external asset managers:

frank-holsteen

Frank Holsteen

Director, Public Equities and Fixed Income
With Wespath since 2012
B.A. from Lake Forest College
 
 

External Asset Manager

* Signatory to the United Nations Principles for Responsible Investment

Please refer to the Investment Funds Description – I Series for a detailed description of the investment strategies used in managing the Fund.

U.S. Treasury Inflation Protection Fund-I Series (USTPF-I)

Fund Objective, Strategy and Holdings

U.S. Treasury Inflation Protection Fund-I Series (USTPF-I) 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).
 

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. Treasury Inflation Protection 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 - September 30, 2019

  3 mo YTD 1 yr 3 yr 5 yr 10 yr
U.S. Treasury Inflation
Protection Fund
1
1.38%
7.69%
7.16%
N/A
N/A
N/A
USTPF Benchmark2
1.48%
7.95%
7.42% N/A
N/A
N/A

 

Fund Characteristics as of September 30, 2019

  USTPF-I USTPF-I
Benchmark
Effective Duration 8.70 8.42
Effective Convexity 1.43 1.32
Real Yield to Worst* 0.4% 0.3%
Effective Maturity 9.37 8.93
Average Quality Aaa Aaa


* Does not reflect the deduction of fees.

 

´╗┐Fund Distribution by Credit Quality as of September 30, 2019

USTPF chart 3
 

U.S. Treasury Inflation Protection Fund-I Series 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.

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-I 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 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 addition, losses could result from the reinvestment of the cash collateral received on loaned securities.

Footnotes

1 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 June 30, 2017. 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.

2 The Related Fund performance benchmark is the Bloomberg Barclays U.S. Inflation Linked Bond Index. The index measures the investment performance of U.S. Treasury Inflation Protected Securities.

Fund Facts

Inception January 1, 2019
Expense Ratio 0.28% for 2019 (Estimated)
Benchmark Bloomberg Barclays U.S. Inflation Linked Bond Index
Fund Assets $68 Million as of September 30, 2019
Holdings Holdings as of September 30, 2019
Unit Price History Wespath Funds Price History
For More Information Summary Fund Descriptions - I Series and Investment Funds Description - I Series and the related Statement of Additional Information.
 

Visit our website for Participants, Conferences and Other Plan Sponsors: wespath.org

©2019 Wespath Institutional Investments LLC, affiliated with The United Methodist Church. All Right Reserved.