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Fund Overview: Objective, Strategy and Holdings

  • The International Equity Fund seeks to earn long-term capital appreciation primarily from a broadly diversified portfolio of foreign equities.
  • The Fund holds real estate investment trusts (REITs) and interests in private real estate and private equity partnerships located in foreign countries.
  • The Fund generally does not invest in companies that derive more than 10% of their revenue from gambling or from the manufacture, sale or distribution of alcoholic beverages, tobacco-related products, adult entertainment, weapons, or the management or operation of prison facilities.

Fund Managers

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

Frank Holsteen Image

Frank Holsteen

Director, Public Equities and Fixed Income

  • With Wespath since 2012
  • B.A. from Lake Forest College
Brian Boyer Image

Brian Boyer, CFA

Director, Private Markets

  • With Wespath since 2003
  • B.A. and B.E. from Dartmouth College
  • MBA from The Wharton School at the University of Pennsylvania
  • CFA Charterholder
Amy Bulger Image

Amy Bulger

Manager, Alternative Investments

  • With Wespath since 2013
  • B.S. from Northern Illinois University
  • MBA from the Kellstadt Graduate School of Business at DePaul University
Mark Warren Image

Mark Warren, CFA, CIMA

Manager, Public Equities

  • With Wespath since 2015
  • B.S. from Purdue University
  • CFA Charterholder
  • CIMA Certification

Management

The Fund invests with strategies that include developed markets, emerging markets and international small-cap. The approach primarily uses active management to invest fund assets among different countries and/or regions of the world. The Fund's managers seek to invest in attractively valued companies that represent long-term above-average investment opportunities.

External Asset Managers

* Signatory to the United Nations Principles for Responsible Investment

 

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

Fund Snapshot
Inception December 31, 1997
Exp. Ratio 0.74% for 2018
Benchmark Morgan Stanley Capital International All Country World (MSCI ACWI) ex-USA IMI
Fund Assets $5,124 Million as of December 31, 2019
Holdings September 30, 2019
Unit Price History Wespath Funds Price History
For More Information Summary Fund Descriptions – P Series and Investment Funds Description – P Series and the related Statement of Additional Information

Relative level of risk compared to other Wespath Funds

Graphic of relative level of risk compared to other Wespath Funds.

Performance, net of fees (as of 12/31/2019)

  3 mo YTD 1 yr 3 yr 5 yr 10 yr
International Equity Fund 10.69% 25.23% 25.23% 12.13% 6.93% 6.03%
IEF Benchmark 9.20% 21.63% 21.63% 9.84% 5.71% 5.21%

Universe Comparison

International Equity Fund vs. Peer Group Universe

Peer Group Performance Comparison

Peer group performance comparison

Annualized Performance (Gross-of-Fees)

  1 Year 3 Year 5 Year 10 Year
International Equity Fund 0.22% 7.55% 4.10% 5.38%
Median -2.66% 5.38% 2.72% 4.50%
Rank in Universe 15th 6th 13th 18th
# of Observations 423 366 294 201

Peer Group Performance Comparison and Annualized Performance (Net-of-Fees) data as of September 30, 2019.

Source: Lipper. Lipper International Equity Funds Universe is a group of mutual funds comparable to IEF. Lipper utilized all mutual funds included in the pre-defined Lipper classification universes of "Int'l Multi-Cap Core" to construct this Universe.

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


ief Benchmark

The International Equity Fund performance benchmark is the MSCI All Country World Index (ACWI) ex USA Investable Market Index (IMI), effective January 1, 2008. The index measures the performance of equities of companies domiciled in developed and emerging markets, excluding the U.S. From January 1, 2006 through December 31, 2007, the benchmark was the MSCI ACWI ex USA Index. Prior to 2006, the benchmark was the MSCI EAFE Index.

Allocations

Holdings-Based Regional Allocations as of December 31, 2019

Region IEF Actual(%) IEF Benchmark (%) Difference(%)
Europe (ex-United Kingdom) 27.3% 30.4% -3.1%
Emerging Markets 25.5% 24.7% +0.8%
Japan 11.7% 17.0% -5.3%
United Kingdom 10.8% 11.3% -0.5%
Pacific (ex-Japan) 9.4% 9.3% +0.1%
Canada 2.5% 6.8% -4.3%
United States 3.3% 0.0% +3.3%
Africa/Mideast 0.3% 0.5% -0.2%
Frontier 0.5% 0.0% +0.5%
Cash (equitized) 2.5% 0.0% +2.5%
Alternatives 6.2% 0.0% +6.2%


Holdings-Based Sector/Industry Allocations as of December 31, 2019

Sector/Industry IEF Actual (%) IEF Benchmark (%) Difference(%)
REITs1 6.0% 4.4% +1.6%
Private Equity 4.4% 0.0% +4.4%
Private Real Estate 1.8% 0.0% +1.8%

 


Holdings-Based Style Allocations as of December 31, 2019

Style IEF Actual (%) IEF Benchmark (%) Difference (%)
Large Cap (>$20Bil) 55.9% 69.6% -13.7%
Mid Cap ($5Bil - $20Bil) 19.3% 16.8% +2.5%
Small Cap (<$5Bil) 16.1% 13.6% +2.5%
Cash (equitized) 2.5% 0.0% +2.5%
Alternatives 6.2% 0.0% +6.2%


1
Real Estate Investment Trusts (REITS) includes REITs, as well as real estate management and development companies.

Characteristics

Characteristics as of September 30, 2019

  IEF1 IEF Benchmark
Wgt. Mkt. Cap ($MM) $58,013 $59,877
Price/Earnings 17.7 16.3
Price to Book 1.8 1.6
Dividend Yield2 1.3% 1.5%
# of Stocks 2,417 6,380

1 Reflects the portion of the fund portfolio that is invested in public equities and REITs.

2 Does not reflect the deduction of fees.


Risk Characteristics as of September 30, 2019

Statistics (trailing 5 years) IEF IEF Benchmark
Beta 1.04 1.00
R-Squared 0.95 1.00


Top 10 Stock Holdings as of September 30, 2019

Company Country Fund % % of IEF Benchmark
Tencent Holdings Ltd. China 1.5% 1.0%
AIA Group Limited Hong Kong 1.5% 0.5%
Samsung Electronics Co. South Korea 1.4% 0.8%
Taiwan Semiconductor Manufacturing Taiwan 1.3% 0.9%
ASML Holding NV Netherlands 1.2% 0.4%
Alibaba Group Holding Ltd. China 1.1% 1.0%
Ping An Insurance (Group) Company of China, Ltd. China 0.8% 0.3%
Ferrari NV Italy 0.8% 0.1%
Kering SA France 0.8% 0.2%
Ocado Group PLC United Kingdom 0.7% 0.0%

 

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. IEF is subject to the following principal investment risks: market risk, investment style risk, security-specific risk, country risk, currency risk, derivatives risk and liquidity risk.

Historical returns are not indicative of future performance. For further discussion of the Fund’s investments strategies and risks, please refer to the Wespath Investment Funds Description and related documents. 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.

Valuation of IEF Units

In the daily valuation of IEF Units, Wespath uses a valuation methodology to capture changes in non-U.S. securities values that arise because of time-zone differences among global securities markets. Many non U.S. securities trade on exchanges that close several hours before IEF’s closing unit price is calculated in the United States, generally at 4 p.m. Eastern time. In the hours between the close of the non U.S. markets and the close of the U.S. market, the value of the non U.S. securities may change due to a variety of factors including, for example, company-specific announcements or market-wide developments. IEF’s daily return may diverge from the daily return of its benchmark index, in part, because the benchmark index values do not reflect such price adjustments.


Expense Ratio

All expenses of the Fund are deducted from the Fund’s net asset value. The expenses include investment management fees, operating expenses, bank custodial fees and miscellaneous Fund administration expenses. These expenses are paid directly by IEF, 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, IEF’s expenses were 0.74% of the fund’s total assets.