Investment Summary as of September 30, 2016

September was a flat month for U.S. stocks and bonds with the S&P 500 Index up .02% and the Barclays Capital U.S. Aggregate Bond Index off (.06%). Both indexes were positive for the quarter; gaining 3.9% and 0.5%, respectively. International developed market stocks in the MSCI EAFE Index were up 0.96% for the month and had a great quarter gaining 5.80%.

The Diversified Fund and Endowment Investment Fund gained 4.5% for the quarter, outpacing the benchmark return of 4.0%. All four broad asset allocations – U.S. stocks, International stocks, Global Fixed Income, and Inflation Protection Strategies – were positive for the 3rd quarter. The Funds are up 7.3% year-to-date versus a benchmark return of 7.9%. Detractors from benchmark relative performance have been:

  • An underweight to higher dividend yielding securities, including telecommunication services companies and utilities in the U.S. stock portfolio.
  • Diversifying inflation protection strategies while we remain in a period of low inflation.
  Quarter Ended

September 30, 2016

  Year-to-Date

September 30, 2016

Diversified Fund 4.5%   7.3%
Benchmark* 4.0%   7.9%
Over (Under) Performance 0.5%   (0.6%)
       
Endowment Investment Fund 4.5%   7.3%
Benchmark* 4.0%   7.9%
Over (Under) Performance 0.5%   (0.6%)
       
Fixed Income Fund 1.6%   8.3%
BC U.S. Aggregate 0.5%   5.8%
Over (Under) Performance 1.1%   2.5%
       
* – Blend of 1) Wespath benchmark of 40% Russell 3000 Index, 25% MSCI ACWI Index (excluding US), 25% Barclays Capital U.S. Universal Index (excluding mbs), 10% Barclays Capital U.S. Government Inflation-Linked Bond Index and 2) HFRI Fund of Funds Composite Index for actual percentage of alternatives

 

Notes: Historical returns are time-weighted and net of all fees.   Returns greater than one year are annualized. Past performance is no guarantee of future returns.