skip to main content

Fund Overview: Objective, Strategy and Holdings

  • Earn long-term capital appreciation from a broadly diversified portfolio of primarily U.S. stocks.
  • Holds securities of publicly-traded U.S. based real estate investment trusts (REITs), limited partnership interests in private U.S. real estate and other private investments (venture capital, buyouts, etc.) of U.S. companies.
  • Holds equity index futures of U.S. stock indexes.
  • 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 U.S. Equity Fund (USEF) invests with investment managers that specialize in broadly diversified strategies. USEF also invests with more than a dozen general partners through its real estate and private equity investments. Over 30% of the Fund is invested in passive strategies while the remainder is actively managed. These managers rely on professional judgment that involves the use of fundamental analysis to select securities. They seek to invest in attractively valued companies that represent above-average long-term investment opportunities. Each active manager has an objective to outperform specific performance benchmarks related to their investment style.

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 0.56% for 2018
Benchmark Russell 3000™ Index
Fund Assets $6,598 Million as of December 31, 2019
Holdings September 30, 2019 - PDF and December 31, 2019 - Excel
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
U.S. Equity Fund 8.53% 29.55% 29.55% 13.66% 10.38% 12.64%
USEF Benchmark 9.10% 31.02% 31.02% 14.57% 11.24% 13.42%

Universe Comparison

U.S. 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
U.S. Equity Fund .81% 11.92% 9.67% 12.28%
Median 1.51% 11.33% 8.48% 11.48%
Rank in Universe 57th 41st 22nd 28th
# of Observations 742 635 543 382

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

Source: Lipper. Lipper Multi-Cap core Universe is a group of mutual funds comparable to USEF. This Universe consists of a Lipper predefined Universe of "Multi-Cap Core funds".

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


usef Benchmark

The U.S. Equity Fund performance benchmark is the Russell 3000 Index. The index measures the investment performance of the 3,000 largest (based on total market value) U.S. companies, representing approximately 98% of the publicly traded companies available for investment in the U.S. equity market.

Allocations

Holdings-Based Style Allocations as of December 31, 2019

Style USEF Actual (%) USEF Benchmark (%) Difference (%)
U.S. Equity Securities 91.8% 100% -8.2%
   Large Cap 45.4% 68.2% -22.8%
      Large Cap Core 10.1% 16.4%  
      Large Cap Growth 17.6% 30.8%  
      Large Cap Value 17.7% 21.0%  
   Mid Cap 34.7% 25.2% +9.5%
      Mid Cap Core 8.3% 7.7%  
      Mid Cap Growth 13.3% 6.4%  
      Mid Cap Value 13.1% 11.1%  
   Small Cap 11.7% 6.6% +5.1%
      Small Cap Core 2.0% 1.8%  
      Small Cap Growth 7.3% 2.5%  
      Small Cap Value 2.4% 2.3%  
Alternatives 6.7% 0.0% +6.7%
   Private Equity 4.4% 0.0%  
   Private Real Estate 2.3% 0.0%  
Cash 1.5% 0.0% +1.5%

Characteristics

Fund Statistics as of September 30, 2019

  USEF2 USEF Benchmark
Wgt. Mkt. Cap ($MM) $128,752 $212,367
Price/Earnings 32.6 18.34
Price to Book 2.9 3.2
Dividend Yield3 1.5% 1.8%
# of Stocks 2,637 3,005

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

3 Does not reflect the deduction of fees.

4 The Russell 3000 was reconstituated in July 2019.


Risk Characteristics as of September 30, 2019

Statistics (trailing 5 years) USEF USEF Benchmark
Beta 1.02 1.00
R-Squared 0.98 1.00


Top 10 Stock Holdings as of September 30, 2019

Company Fund % % of USEF Benchmark
Microsoft Corporation 1.7% 3.6%
Amazon.com Inc. 1.4% 2.4%
Apple Inc. 1.3% 3.4%
Berkshire Hathaway Inc. 1.0% 1.4%
Alphabet Inc. 0.9% 2.5%
JPMorgan Chase & Co. 0.9% 1.3%
Wells Fargo & Co. 0.9% 0.7%
Facebook, Inc. 0.9% 1.4%
Bank of America Corporation 0.8% 0.8%
Johnson & Johnson 0.8% 1.2%


Sector Weightings as of September 30, 2019

USEL Sector weightings image

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. USEF 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 additionally, losses could result from the reinvestment of the cash collateral received on loaned securities.


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 USEF, 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, USEF’s expenses were 0.56% of the Fund’s total assets.