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Fund Overview: Objective, Strategy and Holdings

  • Preserve capital while earning current income generally greater than that of typical money market funds
  • Invests exclusively in units of the sweep account, which holds primarily short-term fixed income instruments including U.S. government bonds, agency bonds, corporate bonds, securitized products, commercial paper, certificates of deposit and other similar types of investments.
  • In periods of stable and falling interest rates, the fund is expected to outperform funds holding securities with shorter maturities.1

Fund Managers

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

Frank Holsteen Image

Frank Holsteen

Managing Director, Investment Management

  • With Wespath since 2012
  • B.A. from Lake Forest College
Nízida Arriaga Image

Nízida Arriaga, CFA

Manager, Fixed Income

  • With Wespath since 2019
  • Bachelor's degree from the University of Puerto Rico-Mayagüéz
  • MBA from the University of Wisconsin-Madison

Management

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. Wellington Management Company is the primary investment subadviser to the sweep account. The sweep account can holdi 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 (the program that focuses on affordable housing, charter schools, and community development facilities). The sweep account is designed to maintain liquidity to ensure the availability of cash for withdrawals and consequently provide liquidity for the Short Term Investment Fund. The account can only purchase securities rated A-, A1/P1 or higher by a Nationally Recognize Rating Organization. From time to time the account can hold lower-rated securities.The average quality of the portfolio is expected to be Aa3/AA-/AA- or higher.

Securities of any-one issuer, except those issued by the U.S. Treasury and government agency, and repo, may not constitute more than 5% of the account. The effective duration of the portfolio will be within a quarter of a year of its benchmark, the Merrill Lynch 90-Day Treasury Bill Index. No holding with a maturity greater than 3.1 years is permitted.

STIF earnings information is available here.

 

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

1 In periods of very low interest rates, some money market funds may voluntarily choose to reduce or suspend fees, which may result in more favorable performance compared to STIF.

Performance, net of fees (as of 09/30/2020)

  3 mo YTD 1 yr 3 yr 5 yr 10 yr
Short Term Investment Fund 0.03% 0.61% 1.07% 1.66% 1.22% 0.71%
STIF Benchmark 0.04% 0.64% 1.10% 1.69% 1.20% 0.64%

See Risk and Disclosures for more information regarding Net of Fees Performance.


STIF Benchmark

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 STIF Earnings Information

Additional earnings information for STIF including monthly returns, compounded annual earnings net of fees and annual returns at year end are available here.

Allocations

Allocations as of June 30, 2020

  STIF STIF Benchmark
Positive Social Purpose Loans 0.00% 0.00%
U.S. Treasuries 21.20% 100.00%
Agency 1.22% 0.00%
Bank Deposit 0.00% 0.00%
Certificate of Deposit 1.36% 0.00%
Commercial Paper 46.32% 0.00%
Corporate 16.10% 0.00%
Repurchase Agreement 12.98% 0.00%
Cash 0.00% 0.00%
Other 0.82% 0.00%
Total 100% 100%

Characteristics

Fund Characteristics as of June 30, 2020

  STIF
Effective Duration 0.42
Current Yield 1.25
Yield to Maturity 0.26%
Effective Maturity 0.46%
30-Day SEC Yield 0.90%
Turnover Ratio 45%


Sector Breakdown as of June 30, 2020

STIF Sector breakdown chart


Quality Breakdown as of June 30, 2020

STIF Sector breakdown chart


Maturity Breakdown as of June 30, 2020

STIF Sector breakdown chart

Risks & 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. 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.

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.


Expense Ratio

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.