Short Term Investment Fund
The following individuals are responsible for the selection and monitoring of external asset managers:
Nízida Arriaga, CFA
Wespath Benefits and Investments is the investment adviser to the Fund. Through exposure to the assets in the sweep account, the Fund seeks diversification across sectors, industries, issuers, and credit quality. Standish Mellon Asset Management is the primary investment subadviser to the sweep account. The sweep account holdings include U.S. government and agency bonds, corporate bonds, securitized products, dollar denominated international fixed income securities, commercial paper, certificates of deposit, and other similar types of investments. The sweep account also holds loans from our Positive Social Purpose Lending Program (program that focuses on affordable housing, charter schools, and community development facilities). The sweep account is designed to maintain liquidity to ensure availability of cash for withdrawals and consequently provide liquidity for the Short Term Investment Fund. The individual security quality in the sweep account can range from AAA to A as rated by Moody’s, Standard & Poor’s or Fitch, though the sweep account may hold lower-rated securities from time to time.
For the sweep account as a whole, the combined holdings of securities from one issuer, not including U.S. Treasuries and government agency securities, may not constitute more than 10% of the Fund or $20 million, whichever is greater. The dollar weighted average life for the sweep account may not exceed 1.5 years, and no instrument with a maturity greater than 3.1 years is permitted.
Please refer to the Investment Funds Description – P Series for a detailed description of the investment strategies used in managing the Fund.
|Inception||April 30, 2002|
|Exp. Ratio||0.33% for 2019|
|Benchmark||Bank of America Merrill Lynch 3-Month Treasury Bill Index|
|Fund Assets||$153 Million as of May 31, 2020|
|Holdings||March 31, 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|
|Short Term Investment Fund||0.14%||0.14%||1.89%||1.65%||1.12%||0.67%|
See Risk and Disclosures for more information regarding Net of Fees Performance.
The Short Term Investment Fund performance benchmark is the BofA Merrill Lynch 3-Month Treasury Bill Index. The index measures the investment performance of the 3-month sector of the U.S. Treasury Bill market.The performance presented in the table above provides the actual returns generated by STIF from the date of its inception, and it includes the performance of Wespath's investments managed with the same strategy prior to the introduction of STIF. At any given time, Wespath invests between $400 and $700 Million in a short term investment strategy. This amount includes all direct investments in the strategy (primarily residual cash) and the assets of the Short Term Investment Fund.
Additional earnings information for STIF including monthly returns, compounded annual earnings net of fees and annual returns at year end are available here.
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. STIF is subject to the following principal investment risks: market risk, investment style risk, security specific risk, credit risk, interest rate risk, liquidity risk and prepayment 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 – 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 STIF are deducted from STIF’s net asset value. The expenses include investment management fees, operating expenses, bank custodial fees and miscellaneous fund administration expenses. The expenses are paid by STIF 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 2019, STIF’s expenses were equal to 0.33% of the Fund’s total assets.