Fixed Income Fund (FIF)

Fund Overview: Objective, Strategy and Holdings

  • Earn current income by investing in a broadly diversified portfolio of fixed-income instruments.
  • Holds publicly traded U.S. fixed-income securities, and fixed-income securities denominated in currencies other than the U.S. dollar.
  • Holds 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.


Performance, Net of Fees


Performance Review


Universe Comparison






Holdings-Based Sector Allocations


Expense Ratio


Risks and Disclosures



Performance, Net of Fees - September 30, 2019

  3 mo YTD 1 yr 3 yr 5 yr 10 yr
Fixed Income Fund 1.83% 9.27% 9.69% 3.89% 3.68% 4.73%
FIF Benchmark 2.34% 9.78% 10.76% 3.51% 3.87% 4.50%

The performance shown is for the stated time period only. Differences in timing of transactions and market conditions prevailing at the time of investment could lead to different results. Differences in the methodology used to calculate performance may also lead to different performance results than those shown. Historical returns are not indicative of future performance.

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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Universe Comparison—Net of Fees

Fixed Income Fund vs. Peer Group Universe (as of June 30, 2019)

FIF Peer Group Universe chart

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


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Characteristics as of June 30, 2019

  FIF FIF Benchmark
Effective Duration 5.84 6.15
Effective Convexity 0.49 0.82
Yield to Worst* 3.3% 2.9%
Effective Maturity 7.99 8.42

* Does not reflect the deduction of fees.


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Distribution by Credit Rating as of June 30, 2019


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Holdings-Based Sector Allocations as of September 30, 2019

Sector FIF Actual (%) FIF Benchmark (%) Difference (%)
Asset-Backed Securities 3.0% 0.5% +2.5%
Commercial Mortgage-Backed Securities 8.6% 2.4% +6.2%
Emerging Maket Debt 8.9% 6.2% +2.7%
High Yield 9.5% 6.1% +3.4%
Mortgage-Baked Securities 8.1% 0.2% +7.9%
Non-U.S. Corporate 7.3% 7.3% 0.0%
Non-U.S. Government 7.4% 6.7% +0.7%
Term Loans 1.2% 0.0% +1.2%
U.S. Corporate 24.4% 25.1% -0.7%
U.S. Government 0.6% 2.3% -1.7%
U.S. Treasuries 18.5% 43.2% -24.7%
Affordable Housing-Wespath 5.8% 0.0% +5.8%
Other* 3.3% 0.0% -3.3%

* Other includes alternatives and cash.

Allocations are preliminary and subject to change.


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Expense Ratio

All expenses of the Fund are deducted from the Fund’s net asset value. The expenses include external investment management fees, operating expenses, bank custodial fees and miscellaneous fund administration and overhead expenses. The administrative and overhead expenses paid by the Fund represent the Fund’s pro rata portion of the expenses of Wespath Benefits and Investments and its affiliates including those incurred in connection with providing investment management, operating and administrative support to the Fund. These expenses are paid directly by the Fund, 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, FIF’s expenses were equal to 0.46% of the Fund’s total assets.


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Risk and 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. FIF is subject to the following principal investment risks: market risk, investment style risk, security-specific risk, credit risk, country risk, currency risk, derivatives risk, interest rate risk, liquidity risk and prepayment risk.

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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FIF Benchmark

The Fixed Income Fund performance benchmark is the Bloomberg Barclays U.S. Universal Index (excluding mortgage backed securities), effective August 24, 2016. The index consists of the U.S. Aggregate Bond Index, the U.S. High-Yield Corporate Index, the 144A Index, the Eurodollar Index, the Emerging Markets Index and the non-ERISA portion of the CMBS Index. Non-dollar denominated issues are excluded from the index. The benchmark was the Barclays U.S. Universal Index (excluding mortgage-backed securities), formerly the Lehman U.S. Universal Index (excluding mortgage-backed securities), from January 1, 2006 to August 23, 2016. From January 1, 2003, through December 31, 2005 the benchmark was the Lehman U.S. Aggregate Bond Index. Prior to January 1, 2003, the benchmark had been the Lehman Intermediate Aggregate Bond Index.

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