U.S. Treasury Inflation Protection Fund (USTPF)

Fund Overview: Objective, Strategy and Holdings

U.S. Treasury Inflation Protection Fund (USTPF) seeks to provide investors with current income and to protect principal from long-term loss of purchasing power due to inflation by investing primarily in U.S. Treasury Inflation Protected Securities (TIPS).

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
U.S. Treasury Inflation Protection Fund -0.49% -1.74% -1.74% N/A N/A N/A
Fund Benchmark -0.49% -1.48% -1.48% N/A N/A N/A
 

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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Fund Characteristics as of December 31, 2018

  USTPF USTPF
Benchmark
Effective Duration 8.14 7.90
Effective Convexity 1.17 1.17
Yield to Worst1 1.03% 1.03%
Effective Maturity 8.97 8.49
Average Quality# of Stocks Aaa Aaa


1 Does not reflect the deduction of fees.

 

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Fund Distribution by Credit Quality as of December 31, 2018

 

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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.

USTPF’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 0.32% 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. USTPF is subject to the following principal investment risks: credit risk, deflation risk, interest rate risk, market 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 additionally, losses could result from the reinvestment of the cash collateral received on loaned securities.

 

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USTPF Benchmark


The U.S. Treasury Inflation Protection Fund performance benchmark is the Bloomberg Barclays U.S. Inflation Linked Bond Index. The index measures the investment performance of U.S. Treasury Inflation Protected Securities.

Fund Facts

Inception June 30, 2017
Exp. Ratio 0.32% for 2017
Benchmark Bloomberg Barclays U.S. Inflation Linked Bond Index
Fund Assets $647 Million as of February 28, 2019
Holdings (PDF) December 31, 2018
Unit Price History (XLS) Wespath Funds Price History
For More Information Summary Prospectus (USTPF) 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, Public Equities and 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

Neuberger Berman Investment Advisers is the primary subadviser of USTPF. The fund employs a passive investment strategy. The performance benchmark for USTPF is the Bloomberg Barclays U.S. Inflation Linked Bond Index. USTPF may use a sampling approach as an efficient and cost-effective alternative for creating a portfolio that closely matches the overall characteristics of the performance benchmark without investing in all of the fixed income securities in the benchmark.

External Asset Managers

* Signatory to the United Nations Principles for Responsible Investment

 

U.S. TIPS Performance in Wespath’s Inflation Protection Fund

Neuberger Berman Investment Advisers LLC has managed a portfolio of U.S. TIPS in Wespath’s Inflation Protection Fund since January 31, 2004 ("U.S. Treasury Inflation Linked Assets").

 
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