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Fund Overview: Objective, Strategy and Holdings

The Social Values Choice Equity Fund (SVCEF) seeks to attain long-term capital appreciation from a passively-managed portfolio of U.S. and non-U.S. domiciled publicly owned companies that fulfills investor preferences for a heightened focus on corporate environmental and social performance.

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:

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
Mark Warren Image

Mark Warren, CFA, CIMA

Manager, Public Equities

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

Management

SVCEF, in response to the concerns expressed in petitions approved by a threshold number of annual conferences, excludes companies with fossil fuel reserves used for energy purposes. Additionally, and in response to the concerns expressed in petitions approved by a threshold number of annual conferences, SVCEF excludes specific companies that are the subject of annual conference resolutions concerning peace in the Middle East. Both the Fiduciary Committee and the UMC Principles Committee of Wespath’s board of directors have approved these additional exclusions.

Like Wespath’s other funds, SVCEF 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.

External Asset Managers

* Signatory to the United Nations Principles for Responsible Investment

Research and Index Provider

 

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, 2014
Exp. Ratio 0.48% for 2018
Benchmark MSCI World Environmental, Social and Governance (ESG) ex Fossil Fuels Index
Fund Assets $93 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
Social Values Choice Equity Fund 8.35% 29.23% 29.23% 13.15% 8.91% -
SVCEF Benchmark 8.35% 28.76% 28.76% 13.12% 9.04% -

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


svcef Benchmark

The Social Values Choice Equity Fund, formerly the Equity Social Values Plus Fund, performance benchmark is the World Environmental, Social and Governance (ESG) ex Fossil Fuels Index, effective April 1, 2017. Prior to April 1, 2017, the benchmark was the MSCI World Custom Environmental, Social, and Governance (ESG) Special Weighted Index.

Characteristics

Fund Statistics as of September 30, 2019

  SVCEF SVCEF Benchmark**
Wgt. Mkt. Cap ($MM) $162,746 $162,757
Price/Earnings 19.4 19.4
Price to Book 2.9 2.9
Dividend Yield*** 2.4% 2.4%
# of Stocks 753 770


** The benchmark is the MSCI World Environmental, Social and Governance (ESG) ex Fossil Fuels Index

*** Does not reflect the deduction of fees.


Characteristics as of September 30, 2019

SVCEF Characteristics image


Top 10 Stock Holdings

Company Fund %
Microsoft Corporation 4.8%
Alphabet Inc. 3.6%
Johnson & Johnson 1.6%
Procter & Gamble Company 1.5%
Visa Inc. Class A 1.5%
Home Depot, Inc. 1.2%
Verizon Communications Inc. 1.2%
MasterCard Incorporated Class A 1.2%
Walt Disney Company 1.1%
Intel Corporation 1.1%

Risks & Disclosures

SVCEF is designed for investors who have a heightened focus on corporate environmental and social performance, seek long-term investment growth through exposure to the U.S. and non-U.S. public equities of companies, and are willing to accept the risk of wide fluctuations in the unit price of the fund.

All investments carry some degree of risk that will affect the value of SVCEF’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. SVCEF 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. Additionally, SVCEF is subject to modestly increased diversification risk, as compared to broad-market passively-managed equity funds, as a result of the exclusion of a significant number of stocks from the investment universe (i.e., the exclusion of companies with fossil fuel reserves used for energy purposes).

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.

Valuation of SVCEF Units

In the daily valuation of SVCEF 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 SVCEF’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. SVCEF’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.

Lending of Portfolio Securities

SVCEF 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

For 2018, SVCEF’s expenses were equal to 0.48% of the Fund’s total assets.