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Balanced Fund (WBAIX)

NAV
$14.89
as of 12/13/2019
1 Day Change
$0.01/(0.07%)
as of 12/13/2019
YTD Return
17.42%
as of 12/13/2019
30-Day SEC Yield (%)
as of 09/30/2019
1.02%
Morningstar Rating™
Overall as of 11/30/2019
     
out of 498 funds
Based on risk-adjusted returns

Fund Facts

  • Ticker
    WBAIX
  • CUSIP
    94904P815
  • Fund
    Inception
    10/01/2003
  • Class
    Inception
    03/29/2019
  • Net
    Assets
    $137 Million
    as of 09/30/2019
  • Dividend
    Frequency
    Semi-annually
  • Morningstar
    Category
    Allocation--30% to 50% Equity
  • Portfolio
    Manager(s)
      Bradley Hinton, CFA

Investment Approach

The investment objectives of the Balanced Fund are long-term capital appreciation, capital preservation and current income.

Strategy and Process

Core conservative allocation

The fund combines our equity and fixed income expertise within a single portfolio.

We build the portfolio one security at a time using a defined asset allocation and concentrating in our best equity ideas.

Value driven, private buyer mindset

The value of a business is a function of the cash flows it will generate over time.

We think about and value a business like a private buyer and look to buy shares at a discount to our calculation of intrinsic value.

Higher-quality fixed income focus

Credit investing is asymmetric in nature.

We focus on downside risk management and portfolio income generated per unit of risk.

Performance

Data quoted is past performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

Historical Returns
as of 11/30/2019

Cumulative Returns

Average Annual Total Returns

YTD 1 MO 3 MO 1 YR 3 YR Since
Inception
10/1/2003
Balanced Fund 16.94% 1.58% 2.21% 12.43% 8.54% 5.80%
Morningstar Moderately Conservative Target Risk Index 13.58% 0.93% 2.15% 11.46% 7.27% 6.09%

Growth of a $10,000 Investment
as of 11/30/2019

Summary of Returns

Year Balanced Fund Morningstar Moderately Conservative Target Risk IndexRelative Results
2019 (11/30/2019) 16.94% 13.58% 3.36%
Swipe/scroll vertically for full history

Since Inception Returns

Since Inception (3/29/2019) Balanced Fund Morningstar Moderately Conservative Target Risk IndexRelative Results
Cumulative Return 148.95% 160.18% -11.23%
Average Annual Return 5.80% 6.09% -0.29%

Morningstar Ratings™
as of 11/30/2019

Rating / Number of funds in the category

Category 3 YR Overall Rating
Allocation--30% to 50% Equity      
out of 498
     
out of 498

Morningstar Rankings™
as of 11/30/2019

Ranking / Number of funds in the category / Percentile Ranking

Category 1 YR 3 YR
Allocation--30% to 50% Equity n/a n/a

Fees & Expenses
as of most recent prospectus dated 07/31/2019

Gross Expense Ratio 0.97%
Net Expense Ratio 0.70%
Contractual Expiration Date 7/31/2020
Distribution and/or service fee (12b-1) Fees None
Sales Charge None
Redemption Fee None

Volatility Measures
as of 09/30/2019

Versus Morningstar Moderately Conservative Target Risk Index 3 Year 5 Year10 Year
R-Squared 86.4 81.776.6
Beta 1.14 1.131.17
Alpha 1.08 0.140.55
Upside Capture Ratio 118.7 112.0116.2
Downside Capture Ratio 103.8 111.6107.3
Standard Deviation 5.8 5.97.1
Sharpe Ratio 1.03 0.790.99

Source: Morningstar Direct

Portfolio

Asset Allocation
% of Net Assets as of 09/30/2019

Sector Allocation
% of Common Stock as of 09/30/2019

Information Technology 29.1%
Financials 21.3%
Materials 17.0%
Health Care 13.6%
Communication Services 12.8%
Consumer Staples 3.6%
Industrials 2.6%

Versus Morningstar Moderately Conservative Target Risk Index

Top 10 Holdings
% of Net Assets as of 09/30/2019

Berkshire Hathaway Inc. - Class B 2.6%
Thermo Fisher Scientific Inc. 2.1%
Alphabet, Inc. - Class C 2.0%
Laboratory Corp. of America Holdings 1.9%
Visa Inc. - Class A 1.9%
Linde plc 1.8%
Mastercard Inc. - Class A 1.8%
Charter Communications, Inc. - Class A 1.8%
Microsoft Corp. 1.8%
Vulcan Materials Co. 1.7%
% of Net Assets in Top Holdings 19.4%

Credit Quality
% of Portfolio as of 09/30/2019

U.S. Treasury 53.1
U.S. Government Agency Mortgage Related Securities 4.7
AAA 8.2
AA 2.0
A 10.5
BBB 10.3
BB 0.5
B 0.0
CCC 0.0
Non-Rated 1.3
Cash Equivalents 9.4

Capitalization
% of Common Stock as of 09/30/2019

> $50 Billion 66.1%
$10 - $50 Billion 21.4%
$2.5 - $10 Billion 8.8%
< $2.5 Billion 3.7%
Weighted Average Market Cap $212.3 Billion

Portfolio Characteristics
as of 09/30/2019

Number of Companies (Equity) 26
Number of Fixed Income Issuers (Including U.S. Treasury Bills, if applicable) 32
Annual Turnover*
33%
5-Year Avg. Annual Turnover* 34%

*as of most recent Annual Report

Fixed Income Characteristics
as of 09/30/2019

Average Maturity 1.6 years
Average Effective Maturity 1.6 years
Average Duration 1.5 years
Average Effective Duration 1.5 years

Maturity Distribution
% of Portfolio as of 09/30/2019

Cash Equivalents 9.4
Less than 1 Year 28.9
1 - 3 Years 45.5
3 - 5 Years 15.3
5 - 7 Years 0.9
7 - 10 Years 0.0
10 Years or more 0.0

Duration Distribution
% of Portfolio as of 09/30/2019

0 - 1 Years 41.7
1 - 3 Years 43.5
3 - 5 Years 14.8
5 - 7 Years 0.0
7 - 10 Years 0.0
10 Years or more 0.0

Distributions

RECORD DATE EX & PAY DATE Income Capital Gain Short-Term Capital Gain Long-Term Total Distribution Reinvestment NAV
06/17/19 06/18/19 0.0322 n/a n/a 0.0322 14.19

Literature

Fact Sheet Commentary Summary Prospectus
Annual Report Semi-Annual Report Prospectus SAI XBRL*

Risks

An investment in the Fund involves certain risks, including, among others, the following:

Market Risk
As with any mutual fund, investment return and principal value will fluctuate, depending on general market conditions and other factors, and it is possible to lose money by investing.

Value Investing Risk
Value investors seek to invest in companies whose stock prices are low in relation to their real worth or future prospects. Undervalued securities are, by definition, out of favor with investors, and there is no way to predict when, if ever, the securities may return to favor.

Concentration Risk
The chance that the Fund’s performance may be hurt disproportionately by the poor performance of relatively few stocks. The Fund tends to invest a high percentage of assets in its largest holdings.

Large Company Risk
Large-capitalization securities tend to have less overall volatility than those issued by smaller capitalization companies, however, large-capitalization securities may underperform securities of smaller capitalization companies during periods when such stocks are in favor.

Mid-Size Company Risk
Mid-capitalization securities may be more vulnerable to adverse developments than those of larger companies due to such companies’ limited product lines, markets, financing sources, and management depth. Mid-capitalization securities may be affected to a greater extent by the underperformance of a sector or changing market conditions.

Small Company Risk
Small-capitalization securities may be more volatile and less liquid due to the companies’ size, limited product lines, markets, financing sources, and management depth. Small-capitalization securities may be affected to a greater extent by the underperformance of a sector or changing market conditions.

Non-U.S. Securities Risk
The Fund may invest in securities issued by non-U.S. issuers, which securities may be denominated in U.S. dollars or foreign currencies. Investments in non-U.S. securities may involve additional risks including exchange rate fluctuation, political or economic instability, the imposition of exchange controls, expropriation, limited disclosure and illiquid markets.

Interest Rate Risk
Fixed income securities are subject to interest rate risk because the prices of fixed income securities tend to move in the opposite direction of interest rates. When interest rates rise, fixed income security prices fall. When interest rates fall, fixed income security prices rise. Changing interest rates may have sudden and unpredictable effects in the markets and on the Fund’s investments. In general, fixed income securities with longer maturities are more sensitive to changes in interest rates.

Credit Risk
The chance that the issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer’s ability to make such payments will cause the price of that security to decline.

Non-Investment Grade Debt Securities Risk
Non-investment grade debt securities (commonly referred to as "high yield" or "junk" bonds) are speculative and involve a greater risk of default and price change than investment grade debt securities due to the issuer’s creditworthiness. The market prices of these securities may fluctuate more than the market prices of investment grade debt securities and may decline significantly in response to adverse economic changes or issuer developments.

Call Risk
Call risk is the risk, especially during periods of falling interest rates, that a bond issuer will call or repay a higher-yielding bond before its maturity date, forcing the Fund to reinvest in bonds with lower interest rates than the original obligations.

Debt Securities Liquidity Risk
Debt securities purchased by the Fund that are liquid at the time of purchase may subsequently become illiquid due to, among other things, events relating to the issuer of the securities (e.g., changes to the market's perception of the credit quality of the issuer), market events, economic conditions, investor perceptions or lack of market participants. The Fund may be unable to sell illiquid securities on short notice or only at a price below current value.

Mortgage-Backed (and Other Asset-Backed) Securities Risk
Mortgage-backed securities (and other asset-backed securities) are generally structured for the securities holders to receive periodic payments as the securities issuer receives payments on the mortgages (or loans) in an underlying asset pool. Sometimes these securities are issued in separate tranches, which can mean the securities holders of one tranche receive payment in full before the securities holders of another tranche receive any payments. Also sometimes credit support is provided for these securities, which can mean the securities issuer, an affiliated party or a third party provides additional assets, or makes additional promises, with respect to payment to the securities holders. Risks to the securities holders can include (i) the underlying asset pool may not pay as expected (which could mean sooner or later than expected), (ii) the securities issuer may have insufficient cash to make payment on the securities generally, or on certain tranches of the securities and (iii) the credit support may be insufficient to make payment on the securities.

Government-Sponsored Enterprises Risk
Obligations of U.S. Government agencies and authorities (such as Fannie Mae and Freddie Mac) are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so. In addition, the value of U.S. Government securities may be affected by changes in the credit rating of the U.S. Government.

Derivatives Risk
Derivatives are instruments, such as futures and forward contracts, whose value is derived from that of other assets, rates or indices. The use of derivatives for non-hedging purposes may be considered to carry more risk than other types of investments. Derivative instruments are subject to a number of risks including counterparty, liquidity, interest rate, market, credit and management risks, and the risk of improper valuation. Changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index, and in some cases the Fund could lose more than the principal amount invested.

Failure to Meet Investment Objective
There can be no assurance that the Fund will meet its investment objective.

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

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