Social Values Choice Bond Fund (SVCBF)

Fund Overview: Objective, Strategy and Holdings

The Social Values Choice Bond Fund (SVCBF) seeks to earn current income while preserving capital by primarily investing in a diversified mix of fixed-income instruments issued by entities that fulfill investor preferences for a heightened focus on corporate environmental and social performance. The fund invests primarily in fixed income securities such as U.S. and non-U.S. government bonds, agency bonds, corporate bonds and securitized products.

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

 

Characteristics

 

Distribution

 

Expense Ratio

 

Risk and Disclosures

 

 


Performance, Net of Fees - December 31, 2018

  3 mo YTD 1 yr 3 yr 5 yr 10 yr
Social Values Choice Bond Fund 0.98% -0.96% -0.96% N/A N/A N/A
Fund Benchmark 0.89% -0.63% -0.63% N/A N/A N/A
 

 

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Performance Review as of September 30, 2018

Year-to-date, benchmark-relative performance benefited from interest rate strategies and an overweight allocation to corporate credit. Exposure to certain emerging market bonds detracted.

 

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Fund Characteristics as of September 30, 2018

  SVCBF SVCBF Benchmark
Effective Duration 5.19 5.95
Effective Convexity -1.05 0.73
Yield to Worst1 4.22% 3.83%
Effective Maturity 6.86 8.32
Average Quality A+ A+

 

1Does not reflect the deduction of fees.

 

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Fund Distribution by Credit Quality as of September 30, 2018

Fund Distribution by Credit Quality image

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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 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.

SVCBF's inception date is June 30, 2017. Expenses from June 30, 2017 through December 31, 2017 were annualized. For 2017, the Fund’s expenses were equal to 0.55% of the Fund’s total assets.

 

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Risk and Disclosures

SVCBF is designed for investors who have a heightened focus on corporate environmental and social performance and seek a greater portion of their investment return from current income, rather than capital appreciation, but exhibit willingness to incur some market risk for the potential of modest capital appreciation.

All investments carry some degree of risk that will affect the value of SVCBF'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. SVCBF 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. Additionally, SVCBF is subject to modestly increased diversification risk, as compared to broad-market fixed income funds, because of the exclusion of a significant number of issuers 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.

 

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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SVCBF Benchmark


The Social Values Choice Bond Fund performance benchmark for is the Bloomberg Barclays U.S. Universal Ex MBS Index. The index consists of the U.S. Aggregate Bond Index, the U.S. High-Yield Corporate Index, the 144A Index, the Eurodollar Index and the Emerging Markets Index. Mortgage backed pass- through securities issued by Ginnie Mae, Fannie Mae and Freddie Mac are excluded from the index.

Fund Facts

Inception June 30, 2017
Exp. Ratio 0.55% for 2017
Benchmark Bloomberg Barclays U.S. Universal (ex mortgage-backed securities)
Fund Assets $83 Million as of December 31, 2018
Holdings (PDF) September 30, 2018
Unit Price History (XLS) Wespath Funds Price History
For More Information Summary Prospectus (SVCBF) and Investment Funds Description (All Funds) and IFD Supplement #1
 

Fund Managers

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

frank-holsteen

Frank Holsteen

Director, Fixed Income
With Wespath since 2012
B.A. from Lake Forest College
 
 
constance-christian

Constance Christian, CFA

Manager, Fixed Income
With Wespath since 2016
BSBA and MBA from Xavier University
MA from DePaul University
 

 

Management

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

Like Wespath’s other funds, SVCBF 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

 
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