U.S. Equity Fund (USEF)

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.

 


Performance, Net of Fees

 

Performance Review

 

Universe Comparison

 

Statistics

 

Risk Characteristics

 

Holdings and Allocations

 

Expense Ratio

 

Risks and Disclosures

 

 


Performance, Net of Fees - June 30, 2019

  3 mo YTD 1 yr 3 yr 5 yr 10 yr
U.S. Equity Fund 4.31% 20.46% 7.99% 14.29% 9.60% 13.79%
Fund Benchmark 4.10% 18.71% 8.98% 14.02% 10.19% 14.67%
 

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

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

USEF Peer Group Universe chart

 

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

 

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Fund Statistics as of June 30, 2019

  USEF2 USEF Benchmark
Wgt. Mkt. Cap ($MM) $125,474 $205,266
Price/Earnings 29.1 23.9
Price to Book 2.9 3.2
Dividend Yield3 1.5% 1.8%
# of Stocks 2,606 2,954


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

3 Does not reflect the deduction of fees.

 

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Risk Characteristics as of June 30, 2019

Statistics (trailing 5 years) USEF USEF Benchmark
Beta 1.01 1.00
R-Squared 0.99 1.00

 

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Fund Holdings as of June 30, 2019

Top 10 Stock Holdings

Company Fund % % of USEF Benchmark
Microsoft Corporation 1.7% 3.5%
Amazon.com Inc. 1.5% 2.7%
Apple Inc. 1.2% 3.2%
Berkshire Hathaway Inc. 0.9% 1.4%
Facebook, Inc. 0.9% 1.6%
JPMorgan Chase & Co. 0.9% 1.3%
Wells Fargo & Co. 0.8% 0.7%
Alphabet Inc. 0.8% 2.2%
Johnson & Johnson 0.8% 1.3%
Bank of America Corporation 0.8% 0.9%


A complete list of fund holdings is also available.
 

Holdings-Based Style Allocations as of June 30, 2019

Style USEF Actual (%) USEF Benchmark (%) Difference (%)
U.S. Equity Securities 92.0% 100% -8.0%
   Large Cap 43.7% 67.2% -23.5%
      Large Cap Core 12.1% 21.1%  
      Large Cap Growth 13.5% 24.7%  
      Large Cap Value 18.1% 21.4%  
   Mid Cap 35.3% 25.9% +9.4%
      Mid Cap Core 8.4% 7.5%  
      Mid Cap Growth 15.2% 7.8%  
      Mid Cap Value 11.7% 10.6%  
   Small Cap 13.0% 6.9% +6.1%
      Small Cap Core 1.5% 1.8%  
      Small Cap Growth 8.9% 2.7%  
      Small Cap Value 2.6% 2.4%  
Alternatives 6.9% 0.0% +6.9%
   Private Equity 4.6% 0.0%  
   Private Real Estate 2.3% 0.0%  
Cash 1.1% 0.0% +1.1%
 


Sector Weightings as of June 30, 2019

USEF sector weighting chart


Sector weights include Private Equity and Private Real Estate categorized as Alternatives. Cash is equitized. ADRs and non-U.S. Securities are categorized as "other."

 

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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 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.

 

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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. 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.

 

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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.

Fund Facts

Inception December 31, 1997
Exp. Ratio 0.56% for 2018
Benchmark Russell 3000™ Index
Fund Assets $6,179 Million as of August 31, 2019
Index Weight of Stocks Ineligible for Purchase 3.8% as of March 31, 2019
Holdings (PDF) June 30, 2019
Holdings (XLS) August 31, 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
 
 
brian_boyer

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_bulger01

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

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

 
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