The cost to manage the fund could decrease
by Robyn Davis Sekula, Presbyterian Foundation | Special to Presbyterian News Service
LOUISVILLE — Effective May 13, the New Covenant Growth Fund (the “Fund”) transitioned from an active to a passive implementation. The mandate will be altered, as needed, to satisfy the Fund’s social screen and environmental, social, and governance (ESG) tilt, which remain as key components of the Fund. Details regarding this change can be viewed in the prospectus supplement dated May 13, 2019. Click here to read it.
Following this change, SEI Investments Management Company (“SIMC”), the advisor to the Fund, and SEI Investments Global Fund Services, the Fund administrator, intend to adjust voluntary waivers to lower the Fund’s Total Actual Annual Fund Operating Expenses from .87% to .72%. SIMC and GFS may discontinue all or part of these waivers at any time.
The Fund invests in ways that are consistent with values established by the General Assembly of the Presbyterian Church (U.S.A.). Mission Responsibility Through Investment implements the General Assembly’s policies on socially responsible investing (also called faith-based investing) by engaging corporations which the Fund holds in its portfolio.
Both positive and negative screens are applied to the fund, tilting investments in favor of companies with high environmental, social and governance ratings. The negative screens steer the portfolio away from companies that manufacture or distribute alcohol, tobacco and weapons, or that operate gambling facilities or for-profit prisons or violate human rights.
SIMC oversees the sub-adviser that implements the Fund’s investment strategy. The mutual fund will invest primarily in a diversified portfolio of equity securities of U.S. companies that are components of an index that represents broad exposure to the U.S. large cap equity market.
To view the statutory prospectus of the Fund, click here.
Established in 1999, New Covenant Growth Fund has a total value of $441 million as of March 31, 2019.
New Covenant Trust Company, which is a subsidiary of the Presbyterian Foundation, provides shareholder services for New Covenant Growth Fund.
“This is an exciting change that SEI is able to provide to current investors, who are expected to benefit from reduced fees,” says Richard White, Chair of the Board of Trustees of New Covenant Trust Company. “Investment options that are consistent with Presbyterian witness are important to us, as well as offering cost-effective ways of managing funds for future ministry, stewardship and mission.”
Investments in the fund are primarily institutional, but anyone can open an account with a minimum investment of $500. Visit www.newcovenantfunds.com and click on “get started” to create an account.
This information is provided for informational purposes only and should not be relied upon by the reader as research or investment advice regarding the Fund or any stock in particular, nor should it be construed as a recommendation to purchase or sell any security.
For those New Covenant Funds which employ the “manager of managers” structure, SEI Investments Management Corporation (SIMC) has ultimate responsibility for the investment performance of the Funds due to its responsibility to oversee the sub-advisers and recommend their hiring, termination and replacement. SIMC is the adviser to the New Covenant Funds, which are distributed by SEI Investments Distribution Co. (SIDCO). SIMC and SIDCO are wholly owned subsidiaries of SEI Investments Company.
There are risks involved with investing, including loss of principal. The program’s social screen and environmental, social and governance (ESG) screen may cause the sub-advisor to make or avoid certain investment decisions when it may be disadvantageous to do so. This means that accounts held in the program may underperform other similar investments that do not consider the social screen and environmental, social and governance (ESG) screen when making investment decisions.
To determine if the Fund(s) are an appropriate investment for you, carefully consider the investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Fund’s prospectus, and if available, the summary prospectus, which can be obtained by calling 1-877-835-4531. Read the prospectus carefully before investing.
- Not FDIC insured
- No bank guarantee
- May lose value
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Categories: Presbyterian Foundation
Tags: new covenant growth fund, presbyterian foundation, sei investments management company
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Ministries: Office of Faith-Based Investing and Corporate Engagement