Extended Term Fixed Income Fund (ETFIF)

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Fund Overview: Objective, Strategy and Holdings

  • Earn current income while preserving capital and providing exposure to long term interest rates by primarily investing in a diversified mix of fixed income instruments.
  • Holds publicly traded U.S. fixed income securities, fixed income instruments denominated in currencies other than the U.S. dollar, and includes private debt securities.
  • May hold privately placed loans originated by the Positive Social Purpose Lending Program (e.g., affordable housing and community development loans).
  • 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.

ETFIF will seek exposure to longer term fixed income security yields while accepting the higher risk associated with market interest rate changes. At its inception and for a period of time thereafter, the Fund will seek to reduce the risk of market interest rate changes, but not eliminate them. For more information, see the Investment Funds Description.

 


Performance, Net of Fees

 

Performance Review

 

Characteristics

 

Distribution

 

Expense Ratio

 

Risks and Disclosures

 

 


Performance, Net of Fees - September 30, 2019

  3 mo YTD 1 yr 3 yr 5 yr 10 yr Since
Inception
Extended Term Fixed Income Fund 4.16% 14.59% 15.70% 4.71% N/A N/A 5.26%
Fund Benchmark 6.58% 20.93% 21.88% 5.56% N/A N/A 6.75%
 

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

 

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Performance Review

For market and fund commentary, please review the Monthly Investment Report.

 

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Characteristics as of September 30, 2019

  ETFIF ETFIF Benchmark
Effective Duration 10.64 15.80
Effective Covexity 1.85 3.38
Yield to Worst* 3.0% 2.9%
Effective Maturity 15.90 23.73


* Does not reflect the deduction of fees.

 

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Distribution

Fund Distribution by Credit Quality as of September 30, 2019

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Fund Distribution by Sector as of September 30, 2019

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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 ETFIF, 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, ETFIF’s expenses were equal to 0.37% of the Fund’s total assets.

 

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Risk and Disclosures

ETFIF is designed for investors with a longer investment time horizon who seek a greater portion of their investment return from current income rather than capital appreciation but exhibit a willingness to incur significant fluctuations in investment value due to higher levels of interest rate risk. Fund investments carry some degree of risk that will affect the value of ETFIF’s investments, its investment performance and the price of its units. As a result, loss of money is a risk of investing in the Fund. ETFIF is subject to the following principal investment risks: credit risk, country risk, currency risk, derivatives risk, interest rate risk, investment style risk, liquidity risk, market risk, prepayment risk, security-specific risk and yield curve 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.

 

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ETFIF Benchmark


The Extended Term Fixed Income Fund performance benchmark is the Bloomberg Barclays U.S. Long Government/Credit Bond Index.

Fund Facts

Inception May 29, 2015
Exp. Ratio 0.37% for 2018
Benchmark Bloomberg Barclays US Long Gov/Cred
Fund Assets $1,007 Million as of September 30, 2019
Holdings (PDF) September 30, 2019
Unit Price History (XLS) 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.
 

Fund Managers

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

frank-holsteen

Frank Holsteen

Director, Public Equities and Fixed Income
With Wespath since 2012
B.A. from Lake Forest College
 
 

Management

ETFIF invests with four different investment management firms that use a combination of active and enhanced management styles. Wespath’s Positive Social Purpose Lending Program may make up to 10% of the Fund’s allocation.

External Asset Managers

* Signatory to the United Nations Principles for Responsible Investment

 
 
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