Investment Policy Updates

Listed below are changes to the Investment Strategy Statement and/or Statement of Administrative Investment Policy. Wespath Benefits and Investments' (Wespath) board of directors authorizes changes to the Investment Strategy Statement and the board of directors’ Fiduciary Committee, which governs the administration of Wespath and Wespath Investment Management’s investment program, authorizes changes to the Statement of Administrative Investment Policy.

Effective January 25, 2017

  • Exhibit F – Equity Social Values Plus Fund
    • Changing Section I – Fund Objective to simplify and standardize language regarding sustainable environmental, social and governance practices of portfolio companies.
    • Changing Section II - Fund Performance Benchmark from MSCI World Custom Environmental, Social, and Governance (ESG) Special Weight Index, consisting of 54% MSCI USA ESG Index and 46% MSCI World ESG ex US Index, to MSCI World ESG ex Fossil Fuels Index, effective 4/1/2017.
    • Changing Section IV – Investment Strategy to simplify and standardize language regarding sustainable environmental, social and governance practices of portfolio companies.

Effective March 6, 2017

Statement of Administrative Investment Policy

  • Section II.F - Changing language to conform with the recently approved changes to Exhibit F – Equity Social Values Plus Fund regarding investments in companies with highly rated environmental, social and governance practices.
  • Section II.K, L, M, N - Changing language to include separate accounts (fund of one) as a permitted structure.
  • Section II.S – Adding section for the establishment of the Social Values Choice Bond Fund.
  • Section II.T - Adding section for the establishment of the U.S. Treasury Inflation Protection Fund.
  • Section IV.G, I - Changing language to include separate accounts (fund of one) as a permitted structure.

Statement of Administrative Investment Policy – Exhibits

  • Exhibit A: U.S. Equity Fund
    • Changing Section III - Performance Objective from exceeding the Fund’s Performance Benchmark by 75 bps to exceeding the Fund’s Performance Benchmark by 35 bps on average per year over a market cycle (five to seven years and net of fees and expenses).
  • Exhibit B: International Equity Fund
    • Changing Section III - Performance Objective from exceeding the Fund’s Performance Benchmark by 200 bps to exceeding the Fund’s Performance Benchmark by 75 bps on average per year over a market cycle (five to seven years and net of fees and expenses).
  • Exhibit G: Annuity Immunization Fund
    • Changing Section VII - Eligible Investors to include the Basic Protection Plan.
  • Exhibit M,N, O,P – Changing Section IV - Investment Strategy to include separate accounts (fund of one) as a permitted structure and changing Section V – Eligible Investments and Limits to include separate accounts (fund of one) as a permitted structure.
  • Adding Exhibit V – Social Values Choice Bond Fund, a new fixed income fund.
  • Adding Exhibit W – U.S. Treasury Inflation Protection Fund, a new inflation protection fund.
  • Various updates to Performance Benchmarks to reflect Bloomberg’s purchase of Barclays Capital’s index business and other minor corrections.

Effective May 30, 2017

Statement of Administrative Investment Policy

Section II.S – Updating the name for the Social Values Choice Bond Fund.

Statement of Administrative Investment Policy - Exhibits

  • Exhibit F: Investment Strategy Equity Social Values Plus Fund
    • Section I – Align language to highlight objective of fund to meet investor preferences for a heightened focus on corporate environmental and social performance.
    • Section IV – Replace “General Board” with “Wespath” where appropriate and remove superfluous information.
  • Exhibit V: Investment Strategy Social Values Choice Bond Fund
    • Header – Add name selected for fund
    • Section I – Align language to highlight objective of fund to meet investor preferences for a heightened focus on environmental, social and governance performance.
    • Section IV – Remove superfluous information.

Click here to see the Investment Policy.

 
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