International Equity Fund (IEF)

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.

 


Performance, Net of Fees

 

Performance Review

 

Universe Comparison

 

Characteristics

 

Holdings

 

Holdings-Based Allocations

 

Expense Ratio

 

Risks and Disclosures

 

 


Performance, Net of Fees - September 30, 2019

  3 mo YTD 1 yr 3 yr 5 yr 10 yr
International Equity Fund -2.17% 13.14% 0.22% 7.55% 4.10% 5.38%
Fund Benchmark -1.72% 11.38% -1.84% 6.10% 3.05% 4.66%
 

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

International Equity Fund vs. Peer Group Universe (as of June 30, 2019)

IEF 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

  IEF 1 IEF Benchmark
Wgt. Mkt. Cap ($MM) $60,395 $61,532
Price/Earnings 18.6 16.3
Price to Book 1.8 1.6
Dividend Yield2 1.4% 1.6%
# of Stocks 2,398 6,401


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 June 30, 2019

Statistics (trailing 5 years) IEF IEF Benchmark
Beta 1.00 1.00
R-Squared 0.97 1.00

 

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Holdings

Top 10 Stock Holdings as of June 30, 2019

Company Country Fund % % of IEF Benchmark
Tencent Holdings Ltd. China 1.6% 1.1%
AIA Group Limited Hong Kong 1.6% 0.5%
Samsung Electronics Co. South Korea 1.4% 0.8%
Taiwan Semiconductor Manufacturing Taiwan 1.1% 0.8%
ASML Holding NV Netherlands 1.1% 0.4%
Alibaba Group Holding Ltd. China 1.0% 1.0%
Kering SA France 0.9% 0.2%
Ferrari NV Italy 0.9% 0.1%
Ping An Insurance (Group) Company of China, Ltd. China 0.8% 0.3%
Royal Dutch Shell PLC United Kingdom 0.8% 1.1%

 
A complete list of fund holdings is also available.

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Holdings-Based Allocations

Holdings-Based Regional Allocations as of June 30, 2019

Region IEF Actual
(%) 
IEF Benchmark (%) Difference
(%)
Europe (ex-United Kingdom) 27.1% 30.4% -3.3%
Emerging Markets 26.0% 25.6% +0.4%
Japan 11.9% 16.6% -4.7%
United Kingdom 10.4% 11.4% -1.0%
Pacific (ex-Japan) 8.3% 8.6% -0.3%
Canada 2.5% 6.8% -4.3%
United States 3.4% 0.0% +3.4%
Africa/Mideast 0.8% 0.6% +0.2%
Frontier 0.5% 0.0% +0.5%
Cash (equitized) 2.7% 0.0% +2.7%
Alternatives 6.4% 0.0% +6.4%

 

Holdings-Based Sector/Industry Allocations as of June 30, 2019

Sector/Industry IEF Actual
(%)
IEF Benchmark
(%)
Difference
(%)
REITs3 6.1% 4.4% +1.7%
Private Equity 4.3% 0.0% +4.3%
Private Real Estate 2.1% 0.0% +2.1%

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

 

Holdings-Based Style Allocations as of June 30, 2019

Style IEF Actual
(%)
IEF Benchmark
(%)
Difference
(%)
Large Cap (>$20Bil) 55.3% 69.7% -14.4%
Mid Cap ($5Bil - $20Bil) 20.2% 16.8% +3.4%
Small Cap (<$5Bil) 15.4% 13.5% +1.9%
Cash (equitized) 2.7% 0.0% +2.7%
Alternatives 6.4% 0.0% +6.4%

 

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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 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.

 

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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. 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.

 

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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.

 
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