A Message from Chief Investment Officer Johara Farhadieh Happy New Year! I hope your holidays were filled with joy and time with loved ones. Global markets navigated an interesting backdrop in 2025: challenges like persistent inflation, a new administration, tariffs, rapidly evolving geopolitical tensions and questions about economic growth were contrasted by tailwinds like loose financial conditions and continued excitement about artificial intelligence. The Magnificent 7 again dominated headlines, but their investment performance was more nuanced than in prior years (just two of the Mag 7 outperformed the Russell 3000 on the year). Concentration at the top remains a reality, and while flows into index funds reinforced that trend, we also saw promising signs of innovation beyond mega-cap tech. AI-related opportunities extended well beyond household names, reinforcing the importance of purposeful diversification and selective exposure.
Wespath’s Year At Wespath, we approached this environment with rigor and discipline, seeking to help clients tackle uncertainty while positioning their impactful missions for long-term growth. We delivered on key priorities like expanding choice for investors and strengthening our investment governance. And I’m confident that all our work—from re-reviewing equity fund strategies to launching a new international index product, formalizing new investment processes for clients, and more—has built a foundation that will serve our investors well in 2026 and beyond.
Going Forward As we enter the new year, I’m thrilled to build on this momentum. Exciting focus areas for 2026 include opportunities in AI, the continued evolution of private markets, new equity fund launches and the expansion of our Positive Social Purpose Lending Program. Challenges and uncertainties remain, but our team and our disciplined approach position us to navigate what’s next.
Thank you for your continued trust and partnership. At Wespath, we remain committed to helping you achieve your mission with confidence and care.
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This letter is intended for institutional investor audiences. Wespath Benefits and Investments (“Wespath”) is a general agency of The United Methodist Church, a 501(c)(3) tax-exempt organization. Wespath administers benefit plans and together with its subsidiaries, UMC Benefit Board, Inc. (“UMCBB”) and Wespath Institutional Investments, LLC (“WII”), invests (or provides back-office services for) assets on behalf of benefit plan participants and beneficiaries, plan sponsors and other institutions controlled by, associated with or related to The United Methodist Church. The P Series funds are managed by UMCBB, and the I Series funds are managed by WII. As part of the Wespath organization, WII and UMCBB utilize certain shared personnel, including investment professionals. The shared personnel relationship is governed by the terms of a Dual Employee Agreement entered into by and among Wespath, WII and UMCBB. Unless otherwise noted, the firm referenced herein is defined to include Wespath, UMCBB and WII.