Social Values Choice Equity Fund
The Social Values Choice Equity Fund (SVCEF) seeks to attain long-term capital appreciation from a passively-managed portfolio of U.S. and non-U.S. domiciled publicly owned companies that fulfills investor preferences for a heightened focus on corporate environmental and social performance.
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.
The following individuals are responsible for the selection and monitoring of external asset managers:
Brian Boyer, CFA
Mark Warren, CFA, CIMA
SVCEF, in response to the 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 the concerns expressed in petitions approved by a threshold number of annual conferences, SVCEF excludes specific companies that are the subject of annual conference resolutions concerning peace in the Middle East. Both the Fiduciary Committee and the UMC Principles Committee of Wespath’s board of directors have approved these additional exclusions.
Like Wespath’s other funds, SVCEF 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.
* Signatory to the United Nations Principles for Responsible Investment
Please refer to the Investment Funds Description – P Series for a detailed description of the investment strategies used in managing the Fund.
|Inception||December 31, 2014|
|Exp. Ratio||0.42% for 2019|
|Benchmark||MSCI World Environmental, Social and Governance (ESG) ex Fossil Fuels Index|
|Fund Assets||$90 Million as of June 30, 2020|
|Holdings||March 31, 2020|
|Unit Price History||Wespath Funds Price History|
|For More Information||Investment Funds Description – P Series|
|3 mo||YTD||1 yr||3 yr||5 yr||10 yr|
|Social Values Choice Equity Fund||19.12%||-3.49%||6.41%||8.00%||7.79%||-|
See Risk and Disclosures for more information regarding Net of Fees Performance.
The Social Values Choice Equity Fund, formerly the Equity Social Values Plus Fund, performance benchmark is the World Environmental, Social and Governance (ESG) ex Fossil Fuels Index, effective April 1, 2017. Prior to April 1, 2017, the benchmark was the MSCI World Custom Environmental, Social, and Governance (ESG) Special Weighted Index.
|Wgt. Mkt. Cap ($MM)||$187,726||$187,604|
|Price to Book||2.5||2.5|
|# of Stocks||742||743|
** The benchmark is the MSCI World Environmental, Social and Governance (ESG) ex Fossil Fuels Index
*** Does not reflect the deduction of fees.
|Johnson & Johnson||2.0%|
|Visa Inc. Class A||1.6%|
|Procter & Gamble Company||1.6%|
|Roche Holding AG||1.3%|
|Verizon Communications Inc.||1.3%|
|Mastercard Incorporated Class A||1.3%|
|Home Depot, Inc.||1.2%|
SVCEF is designed for investors who have a heightened focus on corporate environmental and social performance, seek long-term investment growth through exposure to the U.S. and non-U.S. public equities of companies, and are willing to accept the risk of wide fluctuations in the unit price of the fund.
All investments carry some degree of risk that will affect the value of SVCEF’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. SVCEF 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. Additionally, SVCEF is subject to modestly increased diversification risk, as compared to broad-market passively-managed equity funds, as a result of the exclusion of a significant number of stocks 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 Investment Funds Description – P Series. This is not an offer to purchase securities.
In the daily valuation of SVCEF 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 SVCEF’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. SVCEF’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.
SVCEF 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.
For 2019, SVCEF’s expenses were equal to 0.42% of the Fund’s total assets.