New Covenant swaps investment adviser, lowers fees for four funds

By Toni Weeks

San Diego, Feb. 23 - The board of trustees and the shareholders of New Covenant Funds approved an investment advisory agreement with SEI Investments Management Corp. in separate meetings in February.

As a result, Oaks, Pa.-based SIMC has been named investment adviser to the New Covenant Growth Fund, the New Covenant Income Fund, the New Covenant Balanced Growth Fund and the New Covenant Balanced Income Fund, replacing One Compass Advisors, who announced in November that it was discontinuing mutual fund advisory services.

As a result, the portfolio management of two of the funds has changed. John J. McCue is now the portfolio manager of the New Covenant Balanced Growth Fund and the New Covenant Balanced Income Fund.

McCue replaces Paul H. Stropkay, who was associated with the previous investment adviser.

The remaining two funds will retain all of their current subadvisers.

The board also approved changed to the fee tables for the funds. The new fee structure will go into effect once all service providers have converted, which is expected in early April.

The New Covenant Growth Fund will have management fees of 0.62% and other expenses of 0.51%, for total annual fund operating expenses of 1.13%. A fee waiver with SIMC will bring that down to 0.92%. The old fees were 0.87% for management fees and 0.11% for other expenses, for a total of 0.98%.

The New Covenant Income Fund will have management fees of 0.42% and other expenses of 0.51%, for total annual fund operating expenses of 0.93%. The fee waiver will drop that to 0.7%. The old fees were 0.65% for management fees and 0.11% for other expenses, for a total of 0.76%.

The New Covenant Balanced Growth Fund will have no management fee, other expenses of 0.32% and acquired fund fees of 0.83%, for total annual fund operating expenses of 1.15%, which will decrease to 0.97% due to the fee waiver. The old fees were 0.14% for other expenses and 0.98% for acquired fund fees, for a total of 1.12%.

The New Covenant Balanced Income Fund will have no management fees, other expenses of 0.34% and acquired fund fees of 0.78%, for total annual fund operating expenses of 1.12%. Including the fee waiver, the total fund operating expenses will be 0.98%. The old fees were 0.18% for other expenses and 0.9% for acquired fund fees, for a total of 1.08%.

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