Fixed Income Fund
The following individuals are responsible for the selection and monitoring of external asset managers:
Nízida Arriaga, CFA
The Fund invests with nine different investment management firms that use a combination of active and enhanced management styles. Wespath’s Positive Social Purpose Lending Program makes up roughly 10% of the Fund’s allocation.
* Signatory to the United Nations Principles for Responsible Investment
Please refer to the Investment Funds Description – P Series for a detailed description of the investment strategies used in managing the Fund.
|Inception||December 31, 1997|
|Exp. Ratio||0.46% for 2019|
|Benchmark||Bloomberg Barclays US Universal (ex mortgage backed securities)|
|Fund Assets||$5,984 Million as of September 30, 2020|
|Holdings||June 30, 2020|
|Unit Price History||Wespath Funds Price History|
|For More Information||Investment Funds Description – P Series|
|3 mo||YTD||1 yr||3 yr||5 yr||10 yr|
|Fixed Income Fund||2.00%||5.37%||6.29%||4.96%||5.17%||4.20%|
Fixed Income Fund vs. Peer Group Universe
|1 Year||3 Year||5 Year||10 Year|
|Fixed Income Fund||6.12%||4.81%||4.54%||4.51%|
|Rank in Universe||81st||54th||24th||34th|
|# of Observations||303||252||199||147|
Peer Group Performance Comparison and Annualized Performance (Net-of-Fees) data as of June 30, 2020.
Source: Lipper. Lipper Bond Funds Universe is a group of mutual funds comparable to FIF. Lipper utilized all mutual funds included in the pre-defined Lipper classification universe of "Core Plus Bond" to construct this Universe.
See Risk and Disclosures for more information regarding Net of Fees Performance.
The Fixed Income Fund performance benchmark is the Bloomberg Barclays U.S. Universal Index (excluding mortgage backed securities), effective August 24, 2016. The index consists of the U.S. Aggregate Bond Index, the U.S. High-Yield Corporate Index, the 144A Index, the Eurodollar Index, the Emerging Markets Index and the non-ERISA portion of the CMBS Index. Non-dollar denominated issues are excluded from the index. The benchmark was the Barclays U.S. Universal Index (excluding mortgage-backed securities), formerly the Lehman U.S. Universal Index (excluding mortgage-backed securities), from January 1, 2006 to August 23, 2016. From January 1, 2003, through December 31, 2005 the benchmark was the Lehman U.S. Aggregate Bond Index. Prior to January 1, 2003, the benchmark had been the Lehman Intermediate Aggregate Bond Index.
|Sector||FIF Actual (%)||FIF Benchmark (%)||Difference (%)|
|Commercial Mortgage-Backed Securities||9.3%||2.5%||+6.8%|
|Emerging Maket Debt||9.6%||6.6%||+3.0%|
* The negative exposure to U.S. Government is primarily the notional amount of U.S. interest rate swaps used for reducing duration. Contribution to duration is a better measure of interest rate swap exposure, and the negative exposure on a percentage contribution to duration basis is in the low single digits.
** Other includes alternatives and cash.
Allocations are preliminary and subject to change.
|Yield to Worst*||2.7%||1.9%|
* Does not reflect the deduction of fees.
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. FIF is subject to the following principal investment risks: market risk, investment style risk, security-specific risk, credit risk, country risk, currency risk, derivatives risk, interest rate risk, liquidity risk and prepayment risk.
For further discussion of the Fund’s investments strategies and risks, please refer to the Investment Funds Description – P Series. This is not an offer to purchase 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.
All expenses of the Fund are deducted from the Fund’s net asset value. The expenses include external investment management fees, operating expenses, bank custodial fees and miscellaneous fund administration and overhead expenses. The administrative and overhead expenses paid by the Fund represent the Fund’s pro rata portion of the expenses of Wespath Benefits and Investments and its affiliates including those incurred in connection with providing investment management, operating and administrative support to the Fund. 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. For 2018, FIF’s expenses were equal to 0.46% of the Fund’s total assets.