4Q 2019
Investment Portfolio Review
Leading Catholic Institutional Investment Manager
■ Over $8.2 billion in assets under management
■ Exclusively serve Catholic institutions ■ Founded and owned by the
De La Salle Christian Brothers
Pioneered Catholic Responsible InvestmentsSM
■ Thoughtful and disciplined Catholic investment screens
■ Encourage companies to improve policies and practices through active ownership
Diversified Investment Programs ■ Manager of managers ■ Institutional pooled funds and
separate accounts
Unify Faith and Finance ■ Align investments with mission
Diverse Range of Needs■ Portfolio services for a range
of institutions■ Single- and multi-product
relationships with institutions and their consultants
Global Investor Base ■ Religious Institutes■ Dioceses/Parishes■ Education ■ Healthcare■ Foundations
CBIS helps Catholic organizations achieve their financial goals through
the socially responsible management of their investments.
BY PRODUCT TYPE ($MILLION)
BY CUIT TYPE ($MILLION)
Separate Accounts $562
Global Funds PLC (UCITS) $851
CUIT Funds $5,564
CUIT Magnus® Funds $1,241
Money Market
Opportunistic Bond
Core Index
Value
Short bond
Int. Diversified
Small cap
Growth
International
Int. Small Cap Equity*
CUIT Magnus®
CBIS Asset Review$8.2 BILLION IN TOTAL ASSETS
UNDER MANAGEMENT (12/31/19)
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 1
68%
7%10%
15%
1%
3%
0.1%
5%5%
29%
5%18%
5%4%
13%
17%
*The CUIT International Small Cap Equity Fund was added to the CUIT Funds in December 2019.
Key Highlights:Market Overviewpage 2
Investment Program Offeringspage 11
CUIT Fund’s Performancepage 12
CUIT Fund Reportspage 14
Investment Portfolio Review 4Q 2019
MARKET PERSPECTIVE 4Q 2019
Stage is Set for Continued Economic Growth in 2020
CatholicResponsibleInvestments
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 2
CAPITAL MARKETS REVIEW
I. S&P 500
II. Global Overview
III. U.S. Equity Markets
IV. U.S. Fixed Income Markets
V. Unemployment Rate
VI. Labor Force Participation Rate
VII. U.S. vs Euro ConsumerPrice Index
VIII. Real Gross Domestic Product
IX. Real Output Per Hour ofAll Persons
X. Working Age Population
XI. U.S. Federal Fund Rate vs GrossDomestic Product
The financial markets defied all reasonable expectations in 2019…The market
correction in the fourth quarter of 2018 is a distant memory in the past.
Investment Portfolio Review 4Q 2019
Capital Markets Review
I. S&P 500
■ The 4th quarter 2018 correctionhas been offset and more.
■ Reminder that equity marketsare volatile.
■ We believe long term trend ispositive and linked to economicfundamentals and companyearnings.
Source: S&P Dow Jones Indices LLC.
S&P 500
1
§ The 4th quarter 2018 correction hasbeen offset and more.
§ Reminder that equity marketsare volatile.
§ We believe long term trend ispositive and linked to economicfundamentals and companyearnings. In
dex
Source: S&P Dow Jones Indices LLC..
2300.00
2400.00
2500.00
2600.00
2700.00
2800.00
2900.00
3000.00
3100.00
3200.00
3300.00
2018-01 2018-04 2018-07 2018-10 2019-01 2019-04 2019-07 2019-10
Melt Up
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 3
Investment Portfolio Review 4Q 2019
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 4
Capital Markets Review
■ Equity “melt up” during fourthquarter as prospects for resolutionof US-China trade war emerged.
■ Growth remained the leader forthe quarter and year.
■ Decline in long-term bond yieldsdrove fixed income performancefor the year as the Federal Reserve reversed course and eased policy through the year.
■ Real Estate and Utilities, whichhad been sector leaders throughthe third quarter, gave up groundduring the 4th quarter “melt up”.
■ Sector gains were broad basedfor the year with the notable exception of energy. Despite tensions in the Middle East, energy prices remained stable through 2019, due in large part to increased US supply.
II. GLOBAL OVERVIEW
III. U.S. EQUITY MARKETS
Market Performance: 3 Month
Market Performance: 3 Month
Market Performance: 12 Month
Market Performance: 12 Month
Source: FactSet
Source: FactSet
Global Overview
2
MARKET PERFORMANCE: 12 MONTHMARKET PERFORMANCE: 3 MONTH
§ Equity “melt up” during fourth quarter as prospects for resolution of US-China trade war emerged.
§ Growth remained the leader for the quarter and year.
§ Decline in long-term bond yields drove fixed income performance for the year as the Federal Reserve reversed course and easedpolicy through the year.
Source: FactSet
0.4
0.2
9.1
9.1
7.4
10.6
8.2
9.0
6.2
11.9
9.6
BB U.S. Short T-Bill (1-3M)
Barclays U.S. Aggregate
S&P 500
Russell 3000
Russell 1000 Value
Russell 1000 Growth
S&P 600
MSCI ACWI-Ex US (USD)
MSCI ACWI-Ex US (Local)
MSCI EM (USD)
MSCI EM (Local)
2.2
8.7
31.5
31.0
26.5
36.4
22.8
22.1
21.4
18.9
18.5
BB U.S. Short T-Bill (1-3M)
Barclays U.S. Aggregate
S&P 500
Russell 3000
Russell 1000 Value
Russell 1000 Growth
S&P 600
MSCI ACWI-Ex US (USD)
MSCI ACWI-Ex US (Local)
MSCI EM (USD)
MSCI EM (Local)
Global Overview
2
MARKET PERFORMANCE: 12 MONTHMARKET PERFORMANCE: 3 MONTH
§ Equity “melt up” during fourth quarter as prospects for resolution of US-China trade war emerged.
§ Growth remained the leader for the quarter and year.
§ Decline in long-term bond yields drove fixed income performance for the year as the Federal Reserve reversed course and easedpolicy through the year.
Source: FactSet
0.4
0.2
9.1
9.1
7.4
10.6
8.2
9.0
6.2
11.9
9.6
BB U.S. Short T-Bill (1-3M)
Barclays U.S. Aggregate
S&P 500
Russell 3000
Russell 1000 Value
Russell 1000 Growth
S&P 600
MSCI ACWI-Ex US (USD)
MSCI ACWI-Ex US (Local)
MSCI EM (USD)
MSCI EM (Local)
2.2
8.7
31.5
31.0
26.5
36.4
22.8
22.1
21.4
18.9
18.5
BB U.S. Short T-Bill (1-3M)
Barclays U.S. Aggregate
S&P 500
Russell 3000
Russell 1000 Value
Russell 1000 Growth
S&P 600
MSCI ACWI-Ex US (USD)
MSCI ACWI-Ex US (Local)
MSCI EM (USD)
MSCI EM (Local)
Global Overview
2
MARKET PERFORMANCE: 12 MONTHMARKET PERFORMANCE: 3 MONTH
§ Equity “melt up” during fourth quarter as prospects for resolution of US-China trade war emerged.
§ Growth remained the leader for the quarter and year.
§ Decline in long-term bond yields drove fixed income performance for the year as the Federal Reserve reversed course and easedpolicy through the year.
Source: FactSet
0.4
0.2
9.1
9.1
7.4
10.6
8.2
9.0
6.2
11.9
9.6
BB U.S. Short T-Bill (1-3M)
Barclays U.S. Aggregate
S&P 500
Russell 3000
Russell 1000 Value
Russell 1000 Growth
S&P 600
MSCI ACWI-Ex US (USD)
MSCI ACWI-Ex US (Local)
MSCI EM (USD)
MSCI EM (Local)
2.2
8.7
31.5
31.0
26.5
36.4
22.8
22.1
21.4
18.9
18.5
BB U.S. Short T-Bill (1-3M)
Barclays U.S. Aggregate
S&P 500
Russell 3000
Russell 1000 Value
Russell 1000 Growth
S&P 600
MSCI ACWI-Ex US (USD)
MSCI ACWI-Ex US (Local)
MSCI EM (USD)
MSCI EM (Local)
Global Overview
2
MARKET PERFORMANCE: 12 MONTHMARKET PERFORMANCE: 3 MONTH
§ Equity “melt up” during fourth quarter as prospects for resolution of US-China trade war emerged.
§ Growth remained the leader for the quarter and year.
§ Decline in long-term bond yields drove fixed income performance for the year as the Federal Reserve reversed course and easedpolicy through the year.
Source: FactSet
0.4
0.2
9.1
9.1
7.4
10.6
8.2
9.0
6.2
11.9
9.6
BB U.S. Short T-Bill (1-3M)
Barclays U.S. Aggregate
S&P 500
Russell 3000
Russell 1000 Value
Russell 1000 Growth
S&P 600
MSCI ACWI-Ex US (USD)
MSCI ACWI-Ex US (Local)
MSCI EM (USD)
MSCI EM (Local)
2.2
8.7
31.5
31.0
26.5
36.4
22.8
22.1
21.4
18.9
18.5
BB U.S. Short T-Bill (1-3M)
Barclays U.S. Aggregate
S&P 500
Russell 3000
Russell 1000 Value
Russell 1000 Growth
S&P 600
MSCI ACWI-Ex US (USD)
MSCI ACWI-Ex US (Local)
MSCI EM (USD)
MSCI EM (Local)
U.S. Equity Markets
3
MARKET PERFORMANCE: 12 MONTHMARKET PERFORMANCE: 3 MONTH
§ Real Estate and Utilities, which had been sector leaders through the third quarter, gave up ground during the 4th quarter “melt up”.
§ Sector gains were broad based for the year with the notable exception of energy. Despite tensions in the Middle East, energyprices remained stable through 2019, due in large part to increased US supply.
Source: FactSet
9.1
4.5
3.5
5.5
10.5
14.4
5.5
14.4
6.4
-0.5
9.0
0.8
S&P 500
Consumer Discretionary
Consumer Staples
Energy
Financials
Healthcare
Industrials
Info Technology
Materials
Real Estate
Telecom
Utilities
31.5
27.9
27.6
11.8
32.1
20.8
29.4
24.6
29.0
32.7
26.3
S&P 500
Consumer Discretionary
Consumer Staples
Energy
Financials
Healthcare
Industrials
Info Technology
Materials
Real Estate
Telecom
Utilities
50.3
U.S. Equity Markets
3
MARKET PERFORMANCE: 12 MONTHMARKET PERFORMANCE: 3 MONTH
§ Real Estate and Utilities, which had been sector leaders through the third quarter, gave up ground during the 4th quarter “melt up”.
§ Sector gains were broad based for the year with the notable exception of energy. Despite tensions in the Middle East, energyprices remained stable through 2019, due in large part to increased US supply.
Source: FactSet
9.1
4.5
3.5
5.5
10.5
14.4
5.5
14.4
6.4
-0.5
9.0
0.8
S&P 500
Consumer Discretionary
Consumer Staples
Energy
Financials
Healthcare
Industrials
Info Technology
Materials
Real Estate
Telecom
Utilities
31.5
27.9
27.6
11.8
32.1
20.8
29.4
24.6
29.0
32.7
26.3
S&P 500
Consumer Discretionary
Consumer Staples
Energy
Financials
Healthcare
Industrials
Info Technology
Materials
Real Estate
Telecom
Utilities
50.3
U.S. Equity Markets
3
MARKET PERFORMANCE: 12 MONTHMARKET PERFORMANCE: 3 MONTH
§ Real Estate and Utilities, which had been sector leaders through the third quarter, gave up ground during the 4th quarter “melt up”.
§ Sector gains were broad based for the year with the notable exception of energy. Despite tensions in the Middle East, energyprices remained stable through 2019, due in large part to increased US supply.
Source: FactSet
9.1
4.5
3.5
5.5
10.5
14.4
5.5
14.4
6.4
-0.5
9.0
0.8
S&P 500
Consumer Discretionary
Consumer Staples
Energy
Financials
Healthcare
Industrials
Info Technology
Materials
Real Estate
Telecom
Utilities
31.5
27.9
27.6
11.8
32.1
20.8
29.4
24.6
29.0
32.7
26.3
S&P 500
Consumer Discretionary
Consumer Staples
Energy
Financials
Healthcare
Industrials
Info Technology
Materials
Real Estate
Telecom
Utilities
50.3
U.S. Equity Markets
3
MARKET PERFORMANCE: 12 MONTHMARKET PERFORMANCE: 3 MONTH
§ Real Estate and Utilities, which had been sector leaders through the third quarter, gave up ground during the 4th quarter “melt up”.
§ Sector gains were broad based for the year with the notable exception of energy. Despite tensions in the Middle East, energyprices remained stable through 2019, due in large part to increased US supply.
Source: FactSet
9.1
4.5
3.5
5.5
10.5
14.4
5.5
14.4
6.4
-0.5
9.0
0.8
S&P 500
Consumer Discretionary
Consumer Staples
Energy
Financials
Healthcare
Industrials
Info Technology
Materials
Real Estate
Telecom
Utilities
31.5
27.9
27.6
11.8
32.1
20.8
29.4
24.6
29.0
32.7
26.3
S&P 500
Consumer Discretionary
Consumer Staples
Energy
Financials
Healthcare
Industrials
Info Technology
Materials
Real Estate
Telecom
Utilities
50.3
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 5
Investment Portfolio Review 4Q 2019
IV. U.S. FIXED INCOME MARKETS
Market Performance: 3 Month Market Performance: 12 Month
Treasury Yield Curve
Source: FactSet Absolute Return Duration-Adjusted Excess Return
■ Absolute returns have been strongacross the fixed income sectors.
■ The MBS sector underperformedon a relative basis due toincreased interest rate volatilityand overall decline in yields.
■ High Yield continues to recoverfrom the relative drawdown in thesecond half of 2018.
■ The economic effects of thetrade war have led to a significant decline in interest rates.
■ Year over year, the yield curve hasshifted down in a parallel fashion. The brief curve inversion has been curtailed as the curve steepened through the 4th quarter.
U.S. Fixed Income Markets
4
MARKET PERFORMANCE: 12 MONTHMARKET PERFORMANCE: 3 MONTH
§ Absolute returns have been strong across the fixed income sectors.
§ The MBS sector underperformed on a relative basis due to increased interest rate volatility and overall decline in yields.
§ High Yield continues to recover from the relative drawdown in the second half of 2018.
Absolute Return Duration-Adjusted Excess ReturnSource: FactSet
8.7
6.9
6.3
4.5
8.3
14.5
14.3
0.5
0.7
1.7
6.2
8.9
Barclays U.S. Aggregate
Treasury
MBS
ABS
CMBS
Corporate
High Yield
0.2
-0.8
0.7
0.4
-0.3
1.2
2.6
0.6
0.0
0.0
2.4
2.5
Barclays U.S. Aggregate
Treasury
MBS
ABS
CMBS
Corporate
High Yield
U.S. Fixed Income Markets
4
MARKET PERFORMANCE: 12 MONTHMARKET PERFORMANCE: 3 MONTH
§ Absolute returns have been strong across the fixed income sectors.
§ The MBS sector underperformed on a relative basis due to increased interest rate volatility and overall decline in yields.
§ High Yield continues to recover from the relative drawdown in the second half of 2018.
Absolute Return Duration-Adjusted Excess ReturnSource: FactSet
8.7
6.9
6.3
4.5
8.3
14.5
14.3
0.5
0.7
1.7
6.2
8.9
Barclays U.S. Aggregate
Treasury
MBS
ABS
CMBS
Corporate
High Yield
0.2
-0.8
0.7
0.4
-0.3
1.2
2.6
0.6
0.0
0.0
2.4
2.5
Barclays U.S. Aggregate
Treasury
MBS
ABS
CMBS
Corporate
High Yield
U.S. Fixed Income Markets
4
MARKET PERFORMANCE: 12 MONTHMARKET PERFORMANCE: 3 MONTH
§ Absolute returns have been strong across the fixed income sectors.
§ The MBS sector underperformed on a relative basis due to increased interest rate volatility and overall decline in yields.
§ High Yield continues to recover from the relative drawdown in the second half of 2018.
Absolute Return Duration-Adjusted Excess ReturnSource: FactSet
8.7
6.9
6.3
4.5
8.3
14.5
14.3
0.5
0.7
1.7
6.2
8.9
Barclays U.S. Aggregate
Treasury
MBS
ABS
CMBS
Corporate
High Yield
0.2
-0.8
0.7
0.4
-0.3
1.2
2.6
0.6
0.0
0.0
2.4
2.5
Barclays U.S. Aggregate
Treasury
MBS
ABS
CMBS
Corporate
High Yield
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
1M 3M 6M 1Y 2Y 3Y 5Y 7Y 10Y 30Y
U.S. Fixed Income Markets
5
TREASURY YIELD CURVE
§ The economic effects of the trade war have led to a significant declinein interest rates.
§ Year over year, the yield curve hasshifted down in a parallel fashion.The brief curve inversion has beencurtailed as the curve steepenedthrough the 4th quarter.
Source: Bloomberg
-1.5-1.0-0.50.00.5
1M 3M 6M 1Y 2Y 3Y 5Y 7Y 10Y 30Y
12/31/20189/30/2019
3 Mo Change
12/31/2019
12 Mo ChangeSource: Bloomberg
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
1990 1993 1995 1998 2000 2003 2005 2008 2010 2013 2015 2018
Unemployment Rate
6
§ Global economies are onsound footing.
§ Unemployment continues todecline/remain low.
§ Consumer is poised tosupport economies.
Source: U.S. Bureau of Labor Statistics. Shaded areas indicate U.S. recessions.
Perc
ent
US Unemployment Rate EU Unemployment Rate
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 6
Investment Portfolio Review 4Q 2019
V. UNEMPLOYMENT RATE
VI. LABOR FORCE PARTICIPATION RATE
■ Global economies are onsound footing.
■ Unemployment continues todecline/remain low.
■ Consumer is poised tosupport economies.
■ Labor participation, whichdeclined precipitously postthe Global Financial Crisis isrecovering.
■ Tightness in labor market isbringing workers back to theworkforce.
■ Despite low unemployment levels,we feel this recovery will keepinflation in check.
Source: U.S. Bureau of Labor Statistics. Shaded area indicate U.S. recessions.
Source: U.S. Bureau of Labor Statistics. Shaded area indicate U.S. recessions.
U.S. Unemployment Rate EU Unemployment Rate Labor Force Participation Rate
7
§ Labor participation, which declined precipitously post the GlobalFinancial Crisis is recovering.
§ Tightness in labor market is bringingworkers back to the workforce.
§ Despite low unemployment levels,we feel this recovery will keepinflation in check.
Source: U.S. Bureau of Labor Statistics. Shaded areas indicate U.S. recessions.
Perc
ent
59.0
60.0
61.0
62.0
63.0
64.0
65.0
66.0
67.0
68.0
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 7
Investment Portfolio Review 4Q 2019
VII. U.S. VS. EURO CONSUMER PRICE INDEX
VIII. REAL GROSS DOMESTIC PRODUCT
■ Inflation is well contained globally.
■ Global Central bankers will remaincautious in tightening monetarypolicies.
■ Nevertheless, fundamentals donot justify lower rates.
■ We expect a slow pace towardslong-term normalization.
■ The most recent decade hasexperienced the lowest averagegrowth rate since the ‘70’s.
■ Economic growth is a function ofgrowth in labor force and increasein productivity.
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
1997 2001 2005 2009 2013 2017
US vs. Euro Consumer Price Index
8
§ Inflation is well contained globally.
§ Global Central bankers will remaincautious in tightening monetarypolicies.
§ Nevertheless, fundamentals do notjustify lower rates.
§ We expect a slow pace towardslong-term normalization.
Perc
ent C
hang
e fro
m Y
ear A
go
US CPI EU CPI
Source: U.S. Bureau of Labor Statistics. Shaded areas indicate U.S. recessions.
Source: U.S. Bureau of Labor Statistics. Shaded area indicate U.S. recessions.
Source: U.S. Bureau of Labor Statistics. Shaded area indicate U.S. recessions.
U.S. CPI EU CPI
Gross Domestic Product Decade Average
Real Gross Domestic Product
9
§ The most recent decade hasexperienced the lowest average growth rate since the ‘70’s.
§ Economic growth is a function ofgrowth in labor force and increasein productivity.
Perc
ent C
hang
e fro
m P
rece
ding
Per
iod
Source: U.S. Bureau of Labor Statistics. Shaded areas indicate U.S. recessions.
Gross Domestic Product Decade Average
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 8
Investment Portfolio Review 4Q 2019
IX. REAL OUTPUT PER HOUR OF ALL PERSONS
X. WORKING AGE POPULATION (Aged 15-64 – All Persons for the United States)
■ Despite technology advances,productivity gains have beensub-par, particularly comparedto increases in the ‘90’s andearly 00’s.
■ Has technology reached thelimit of marginal contributionsto productivity?
■ Disturbing trend in US.
■ Demographics are workingagainst significant increase inUS growth.
■ This is similar to the situation inJapan, leading to….
■ Lower for longer: lower interestrates, lower economic growth.
Source: U.S. Bureau of Labor Statistics. Shaded area indicate U.S. recessions.
Nonfarm Business Sector Decade Average
Working Age Population (Aged 15-64 – All Persons for the United States)
11
Perc
ent C
hang
e fro
m Y
ear A
go
Source: Organization for Economic Co-Operation and Development. Shaded areas indicate U.S. recessions.
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
1975 1980 1985 1990 1995 2000 2005 2010 2015
§ Disturbing trend in US.
§ Demographics are working against significant increase in US growth.
§ This is similar to the situation inJapan, leading to….
§ Lower for longer: lower interestrates, lower economic growth.
Source: Organization for Economic Co-Operation and Development. Shaded area indicate U.S. recessions.
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014 2018
Real Output Per Hour of All Persons
10
§ Despite technology advances, productivity gains have beensub-par, particularly compared to increases in the ‘90’s and early 00’s.
§ Has technology reached the limit of marginal contributions to productivity?
Perc
ent C
hang
e fro
m P
rece
ding
Per
iod
Source: U.S. Bureau of Labor Statistics. Shaded areas indicate U.S. recessions.
Nonfarm Business Sector Decade Average
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 9
Investment Portfolio Review 4Q 2019
XI. U.S. FEDERAL FUND RATE VS. GROSS DOMESTIC PRODUCT
■ Federal Reserve remainsstimulative.
■ Tensions in Middle East, politicsin 2020 will tend to keep the Federring on the side of continuedstimulation.
■ Favorable conditions for positiveequity returns, though we do notexpect a repeat of 2019.
Source: BEA, Board of Governors. Shaded area indicate U.S. recessions.
U.S. Federal Fund Rate vs. Gross Domestic Product
12
§ Federal Reserve remains stimulative.
§ Tensions in Middle East, politics in2020 will tend to keep the Fed erringon the side of continued stimulation.
§ Favorable conditions for positiveequity returns, though we do notexpect a repeat of 2019.
Perc
ent C
hang
e fro
m Y
ear A
go
Sources: BEA, Board of Governors. Shaded areas indicate U.S. recessions.
Gross Domestic Product
Effective Federal Funds Rate
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014 2018
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 10
Investment Portfolio Review 4Q 2019
Market Musings
The financial markets defied all reasonable expectations in
2019. Despite an ongoing trade war between the US and China,
uncertainty over the resolution of Brexit, and the impeachment
of President Trump by the US House of Representatives, global
equity markets, as represented by the MSCI All Country World
Index (US Dollar), returned 26.6%. The US equity markets were
even stronger, with a 31.5% return for the S&P 500 index (including
dividends). The market correction in the fourth quarter of 2018 is a
distant memory in the past.
Given the strong market gains in 2019, a reasonable question is
whether we are due for a bear market. While corrections of 10-20%
are to be expected, we do not foresee an imminent bear market
because economic conditions remain benign.
The unemployment situation in both the US and Europe
remains quite favorable. And, in an important development,
the labor participation rate in the US has finally shown signs
of improving. After the financial crisis, we saw a significant
reduction in the percentage of working age persons working and/
or searching for work. (This decline in the participation rate
represents approximately 4.6 million people.) There was a large
“disenfranchised” workforce not working. The increase in labor
participation is a positive development indeed.
Moreover, the low levels of unemployment have defied the Phillips
Curve, which states there is a tradeoff between unemployment and
inflation. Inflation remains quite contained globally, which is, to
an extent, due to the lower potential growth in GDP. We are not
growing at a rate that will drive increased pricing pressures. Simply
put, economic growth is a function of how many people are working
and how productive the workers are. We have seen a decade over
decade decline in GDP growth, particularly in the US.
This correlates quite closely with the decline in productivity growth,
and more disturbing, the decline in the labor force. We believe the
developed nations of the world may be faced with a demographic
headwind for quite some time.
As a result, we expect the Federal Reserve and other global central
banks to be moderate in their pursuit to normalize interest rates.
One indicator of whether the Fed is stimulative or restrictive is the
relationship between nominal GDP growth and the Fed Funds rate.
When the Fed Funds rate is below nominal GDP growth, the Fed is
stimulative, as it is currently. The Fed has capacity to increase rates
before it would be considered restrictive, to about 2.25% based on
current nominal GDP growth.
We do not expect a continued “melt-up” in global equity markets
in 2020. Corrections may occur from time to time, but we believe
the economic landscape supports continued economic growth and
market returns in line with earnings growth, which we anticipate to
be in the range of 5-10%. The risk to this forecast remains a policy
mistake, as always. Barring that, in our view the economy and
markets remain on solid footing.
John W. Geissinger, CFA Chief Investment Officer, CBIS
Opinions are subject to change and may not reflect the actual performance results of the markets and/or CBIS products.
Investment Programs OfferingsCBIS Offers Pooled Funds through its CUIT and Global Funds plc (UCITS) Fund families
CUIT FUND BENCHMARK MANAGER(S)
CUIT Money Market Fund Bloomberg Barclays U.S. Short T-Bills (1-3M) Index Wellington
CUIT Short Bond Bloomberg Barclays 1-3 Year Treasury Index Longfellow
CUIT Intermediate Diversified Bond Bloomberg Barclays Aggregate Index Dodge & Cox, Brandywine Global, SLC Management
CUIT Opportunistic Bond Bloomberg Barclays 1-5 Year US Gov’t Credit Index Longfellow, Brandywine Global
CUIT Core Equity Index S&P 500 RhumbLine
CUIT Value Equity Russell 1000 Value Index AJO, Dodge & Cox
CUIT Growth Russell 1000 Growth Index LA Capital, Wellington
CUIT Small-Cap Equity Index S&P SmallCap 600 Index RhumbLine
CUIT International Equity MSCI ACWI Ex-U.S. Index Causeway, Principal Global, WCM
CUIT International Small Cap Equity MSCI All Country World ex US Small-Cap Index Lazard, Global Alpha
UCITS FUND BENCHMARK MANAGER(S)
European Short-Term Government Bond Bloomberg Barclays Euro Gov’t Bond Index 1-3 Year ARCA Fondi SGR SpA
World Bond Bloomberg Barclays Capital Global Aggregate Index Degroof Fund Management Company
European Equity MSCI Europe Index Degroof Fund Management Company
World Equity MSCI AC World IndexScott Investment Partners; Los Angeles
Capital Management Equity Research
Note: CUIT Funds are available to tax-exempt Catholic institutions in the United States. CBIS Global (UCITS) Funds can be purchased in select countries around the world.
CUIT MAGNUS FUNDS RETURN-SEEKING RISK-REDUCING ASSETS
CUIT Magnus 45/55 Fund CUIT Small Cap Equity IndexCUIT International EquityCUIT Growth EquityCUIT Core Equity IndexCUIT Value EquityCUIT International Small Cap Equity*
4.50%9.00%3.50%
22.25%3.50%2.25%
CUIT Short BondCUIT Opportunistic Bond CUIT Intermediate Diversified Bond
13.75%13.75%
27.5%
CUIT Magnus 60/40 Alpha Plus CUIT Small Cap Equity IndexCUIT International EquityCUIT Growth EquityCUIT Core Equity IndexCUIT Value EquityCUIT International Small Cap Equity*
6.00%12.00%12.00%15.00%12.00%
3.00%
CUIT Short BondCUIT Opportunistic Bond CUIT Intermediate Diversified Bond
10.0%10.0%20.0%
CUIT Magnus 60/40 Beta Plus CUIT Small Cap Equity IndexCUIT International EquityCUIT Core Equity IndexCUIT International Small Cap Equity*
6.00%12.00%39.00%
3.00%
CUIT Short BondCUIT Opportunistic Bond CUIT Intermediate Diversified Bond
10.0%10.0%20.0%
CUIT Magnus 75/25 CUIT Small Cap Equity IndexCUIT International EquityCUIT Growth EquityCUIT Core Equity IndexCUIT Value EquityCUIT International Small Cap Equity*
7.50%15.00%
7.50%33.75%
7.50%3.75%
CUIT Short BondCUIT Opportunistic Bond CUIT Intermediate Diversified Bond
6.25%6.25%12.5%
*The CUIT International Small Cap Equity Fund was allocated to Magnus® in December 2019.
Multi-Asset Program Offerings: Magnus Fund Series CBIS offers the Magnus Fund Series, a Catholic United Investment Trust (CUIT) Fund Family, in the U.S. Powered by the CUIT single asset funds, each Magnus Fund is designed to achieve a diversified and optimized balance between return-seeking and risk-reducing asset classes.
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 11
Investment Portfolio Review 4Q 2019
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 12
Please review the Important Disclosures on page 42 for further information.
CUIT Funds Performance (December 31, 2019)
INVESTMENT OPTION/BENCHMARK 1MONTH
3 MONTHS
1YEAR
3YEARS
5YEARS
10YEARS
SINCEINCEPTION
INCEPTIONDATE
CUIT Money Market Fund 0.14 0.46 2.20 1.62 1.03 0.52 3.18 Jan 1985
Bloomberg Barclays US Short Treasury - Bills (1-3M) Index ±
0.14 0.44 2.21 1.61 1.04 0.56 3.58
CUIT Short Bond Fund 0.12 0.54 4.14 2.41 2.01 2.08 5.05 Jan 1985
Bloomberg Barclays 1-3 Year Treasury Index ** 0.22 0.51 3.59 1.85 1.39 1.22 4.85
CUIT Opportunistic Bond Fund Class A 0.29 0.59 5.35 2.58 2.25 * 1.83 May 2013
CUIT Opportunistic Bond Fund Class B 0.39 0.69 5.56 2.75 2.43 * 1.98 May 2013
Bloomberg Barclays 1-5 Year US Gov't/Credit Index 0.21 0.50 5.01 2.54 2.03 * 1.69
CUIT Inter. Diversified Bond Fund Class A 0.02 0.28 8.78 3.99 3.06 3.94 5.63 Jan 1995
CUIT Inter. Diversified Bond Fund Class B 0.02 0.28 8.93 4.14 3.20 4.09 4.64 Jan 2003
Bloomberg Barclays Capital Aggregate Bond Index -0.07 0.18 8.72 4.03 3.05 3.75 5.57/4.16
CUIT Value Equity Fund Class A 2.27 7.71 23.06 8.23 6.86 10.94 9.41 Jan 1995
CUIT Value Equity Fund Class B 2.31 7.80 23.50 8.63 7.24 11.33 9.44 Jan 2003
Russell 1000 Value Index 2.75 7.41 26.54 9.68 8.29 11.80 10.07/9.34
CUIT Core Equity Index Fund Class A 2.98 8.80 32.05 15.60 11.50 13.27 10.01 Jan 1995
CUIT Core Equity Index Fund Class B 3.00 8.87 32.33 15.83 11.73 13.50 6.53 Mar 2000
S&P 500 Index 3.02 9.07 31.49 15.27 11.70 13.56 10.22/6.49
CUIT Growth Fund Class A 2.60 9.25 33.46 18.54 13.07 13.77 9.16 Jan 1991
CUIT Growth Fund Class B 2.63 9.33 33.87 18.90 13.42 14.12 9.89 Jan 2003
Russell 1000 Growth Index **** 3.02 10.62 36.39 20.49 14.63 15.22 10.30/11.30
CUIT Small Cap Equity Index Fund Class A 3.05 8.20 22.24 8.41 7.92 11.35 6.97 Jan 2007
CUIT Small Cap Equity Index Fund Class B 3.06 8.21 22.58 8.74 8.23 11.69 7.28 Jan 2007
S&P SmallCap 600 Index § 2.99 8.21 22.78 8.99 8.47 11.95 7.51
CUIT International Equity Fund Class A 4.58 10.10 26.10 11.42 6.59 6.38 6.05 Jan 1995
CUIT International Equity Fund Class B 4.66 10.27 26.75 11.95 7.06 6.83 2.84 Mar 2000
MSCI ACWI-ex U.S. ‡ 4.36 8.99 22.13 10.40 6.33 6.07 5.60/4.03
Investment Portfolio Review 4Q 2019
INVESTMENT OPTION/BENCHMARK 1MONTH
3 MONTHS
1YEAR
3YEARS
5YEARS
10YEARS
SINCEINCEPTION
INCEPTIONDATE
CUIT Magnus® 60 40 Alpha Plus Class A 2.12 5.62 19.25 * * * 7.36 Jul 2018
CUIT Magnus® 60 40 Alpha Plus Class B 2.02 5.60 19.44 * * * 7.56 Jul 2018
40% BBAgg / 45% Russell 3000 / 15% MSCI ACWI-ex U.S.
1.92 5.47 20.63 * * * 8.88
CUIT Magnus® 60 40 Beta Plus Class A 2.13 5.65 20.26 * * * 7.65 Aug 2018
CUIT Magnus® 60 40 Beta Plus Class B 2.19 5.77 20.58 * * * 9.00 Sep 2018
40% BBAgg / 45% Russell 3000 / 15% MSCI ACWI-ex U.S.
1.92 5.47 20.63 * * * 8.31/9.35
CUIT Magnus® 45 55 Fund Class A 1.63 4.29 16.32 * * * 9.59 Oct 2018
55% BBAgg / 33.75% Russell 3000 / 11.25% MSCI ACWI-ex U.S.
1.42 4.13 17.60 * * * 10.39
CUIT Magnus® 75 25 Class A 2.52 6.69 22.41 * * * 16.04 Nov 2018
CUIT Magnus® 75 25 Class B 2.61 6.68 * * * * 9.86 Apr 2019
25% BBAgg / 56.25% Russell 3000 / 18.75% MSCI ACWI ExUs
2.42 6.81 23.69 * * * 17.91/10.57
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 13
Please review the Important Disclosures on page 42 for further information.
CUIT Magnus® Funds Performance (December 31, 2019)
Investment Portfolio Review 4Q 2019
Credit Quality %FUND BENCHMARK
A-1+ or higher 56.3 100.0
A-1 40.5 0.0
Less than A-1 2.9 0.0
Cash 0.3 0.0
Portfolio AnalysisSTATISTICS FUND BENCHMARK
Effective Duration (years) 0.2 0.1
Average Quality A-1+ A-1+
Yield-to-Maturity 1.9 1.4
Fund Size $82.5 MM
Objective Capital preservation, liquidity and current income
InvestmentsHigh quality and high liquidity fixed income obligations with short maturities
StrategyLiquidity will be maintained by investing in highly rated securities with short maturities (portfolio average maturity less than 90 days); credit and default risk are further minimized by diversifying among issuers; the Fund attempts to maintain a stable net asset value of $1.00 per unit.
BenchmarkBloomberg Barclays U.S. Short T-Bills (1-3 M) Index
Asset ManagersWellington Management Company (Effective 2001)
Total Expense Ratio / Minimum 0.35% / No Minimum
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Money Market Fund
Fund Performance
CUIT Money Market
Bloomberg Barclays US Short Treasury - Bills (1-3M) Index
2.5%2.0%1.5%1.0%0.5%
0%3 MO 1 YR 3 YR 5 YR 10 YR
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Money Market 0.46 2.20 1.62 1.03 0.52
Bloomberg Barclays US Short Treasury-Bills (1-3M) Index 0.44 2.21 1.61 1.04 0.56
CALENDAR YEAR RETURN 2019 2018 2017 2016 2015
CUIT Money Market 2.20 1.74 0.93 0.31 0.02
Bloomberg Barclays US Short Treasury-Bills (1-3M) Index 2.21 1.82 0.81 0.33 0.05
Source: BNY Mellon, SS&C. Please see Important Disclosures on Page 2.
Source: FactSet
Source: FactSet
Source: FactSet
Maturity DistributionFUND
0 to 7 Days 34.4
8 to 29 Days 15.9
30 - 59 Days 17.7
60 - 89 Days 12.5
90 - 179 Days 10.0
180 and Over 9.6
Market Sector Analysis %US Government
& AgenciesCertificates of Deposit
Repurchase Agreements Commercial Paper Corporate Asset-Backed
SecuritiesNon-Corporate
Credit Cash
Fund 33.4 9.2 2.7 5.5 16.2 32.7 0.0 0.3Benchmark 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Active Weights -66.6 9.2 2.7 5.5 16.2 32.7 0.0 0.3
Source: FactSet.
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 14
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Money Market Fund
Important InformationBenchmark Index: The Fund’s benchmark was changed to the Bloomberg Barclays U.S. Short Treasury Bills (1-3 Month) Index effective April 1, 2017. For periods prior to April 1, 2017, the applicable benchmark was the Merrill Lynch 91-Day Treasury Bill Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative indices represent unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but are not necessarily intended to parallel the risk or investment approach of your investments. The indices do not incur taxes or expenses but are inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the indices may be obtained from our provider or CBIS.
Bloomberg Index Services Limited: BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
CBIS offers pooled funds on behalf of a not-for-profit investment trust, the Catholic United Investment Trust (CUIT) Offering Memorandum, which contains further information, is available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Fund. Commingled Fund exclusively for tax-exempt Catholic institutions. All assets are invested in accordance with CBIS’ Catholic Responsible Investing Guidelines. Total expense ratio includes management fee and all other fees (accounting, custody and transfer agent). The Funds provide daily NAV and daily liquidity.
12-Month Review■ Overall, the Money Market Fund had a solid year.
■ On October 30, 2019, the Federal Reservelowered the Federal Funds rate for the third time during the year, a move that was widely expected and fully priced in the market.
■ The Fund’s yield to maturity declined.
■ An allocation to consumer ABS and investmentgrade Corporates contributed. Duration posturewas additive. Positioning in U.S. governmentsand non-corporate credit had a neutral impact.
3-Month Review■ Yields on the front end of the curve declined.
■ During the 3-month period, the Fund’s yield tomaturity declined.
■ Allocation to consumer ABS and investmentgrade Corporate securities positively impactedfund results. Duration/yield curve positioninghad a neutral impact as did positioning in U.S.governments and non-corporate credit.
Current Positioning■ The portfolio’s duration posture is slightly
longer than the benchmark.
■ The sub-advisor maintains a modestpro-cyclical positioning in corporate bondsbased on supportive technicals and stablefundamentals, though tight valuations tempertheir enthusiasm.
All attribution is based on gross portfolio performance.
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 15
Objective Capital preservation and current income in excess of cash market yields
InvestmentsShort-term U.S. government, agency, corporate, asset-backed and mortgage-backed securities; Up to 10% of the portfolio may be invested in short-maturity bonds rated below investment-grade
StrategyFocus on sector allocation and security selection, coupled with a top-down macroeconomic risk management process; aimed at minimizing downside risk while maximizing income potential
BenchmarkBloomberg Barclays 1-3 Year U.S. Treasury Index
Asset ManagersLongfellow Invst. Mgmt. Co. (Effective 2008)
Total Expense Ratio / Minimum 0.33% / No Minimum
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Short Bond Fund
Fund Performance
CUIT Short Term Bond
Bloomberg Barclays 1-3 Year U.S. Treasury Index
5%4%3%2%1%0%
3 MO 1 YR 3 YR 5 YR 10 YR
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Short Bond Fund 0.54 4.14 2.41 2.01 2.08
Bloomberg Barclays 1-3 Year U.S. Treasury Index 0.51 3.59 1.85 1.39 1.22
CALENDAR YEAR RETURN 2019 2018 2017 2016 2015
CUIT Short Bond Fund 4.14 1.41 1.71 1.99 0.81
Bloomberg Barclays 1-3 Year U.S. Treasury Index 3.59 1.56 0.42 0.86 0.54
Portfolio AnalysisSTATISTICS FUND BENCHMARK
Average Maturity (years) 2.3 1.9
Effective Duration (years) 2.0 1.8
Average Quality AA- TSY
Yield-to-Maturity 2.3% 1.6%
Current Yield 2.8% 1.8%
# of Securities 209 94
Effective Duration %FUND BENCHMARK
<1 Year 26.1 3.9
1-3 Years 52.5 96.1
3-5 Years 19.4 0.0
5-7 Years 2.0 0.0
Credit Quality %FUND BENCHMARK
AAA 59.8 100.0
AA 4.9 0.0
A 15.3 0.0
BBB 15.7 0.0
Below BBB 3.3 0.0
Cash 1.0 0.0
Risk Metrics (5yr)CHARACTERISTICS FUND BENCHMARK
Standard Deviation 0.8 0.9
Tracking Error 0.4 0.0
Sharpe Ratio 1.6 0.4
Information Ratio 2.2 N/A
Upside Capture 115.1 100.0
Downside Capture -7.7 100.0
Market Sector Analysis %Treasuries Agencies Industrials Finance Utilities Supra-
national Sovereign MBS CMO CMBS ABS Municipals CoveredBonds
Merger/Arbitrage Cash
Fund 27.3 5.4 15.9 13.9 2.0 0.0 0.0 2.9 0.7 11.1 17.7 2.1 0.0 0.0 1.0Benchmark 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Active Weights -72.7 5.4 15.9 13.9 2.0 0.0 0.0 2.9 0.7 11.1 17.7 2.1 0.0 0.0 1.0
Source: FactSet
Total Fund Value $444.1 MMCUIT Short Bond Fund $325.5 MM
CUIT Short Bond Fund in Magnus® $118.6 MM
Source: BNY Mellon, SS&C. Please see Important Disclosures on Page 2.
Source: FactSet
Source: eVestment Source: FactSet
Source: FactSet
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 16
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Short Bond Fund
Important InformationBenchmark Index: The Fund’s benchmark was changed to the Bloomberg Barclays 1-3 Year Treasury Index effective July 1, 2016. For periods prior to July 1, 2016, the applicable benchmarks were: ML 1-3 Yr Treasury Index effective 7/1/01; ML 1-5 Yr G/C Index effective 4/1/98; 50% LB Intermediate Government /50% LB 1-3 Yr Government effective 5/1/96; LB 1-3 Yr Government in prior periods. The performance shown for SBF reflects the linked performance of these benchmarks for each applicable period. Characteristics presented for the Short Bond Fund were also compiled using data from Barclays Capital U.S. 1-3 Year Treasury Bond Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative indices represent unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but are not necessarily intended to parallel the risk or investment approach of your investments. The indices do not incur taxes or expenses but are inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the indices may be obtained from our provider or CBIS.
Bloomberg Index Services Limited: BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
CBIS offers pooled funds on behalf of a not-for-profit investment trust, the Catholic United Investment Trust (CUIT) Offering Memorandum, which contains further information, is available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Fund. Commingled Fund exclusively for tax-exempt Catholic institutions. All assets are invested in accordance with CBIS’ Catholic Responsible Investing Guidelines. Total expense ratio includes management fee and all other fees (accounting, custody and transfer agent). The Funds provide daily NAV and daily liquidity.
12-Month Review■ Duration positioning detracted.
■ Curve positioning was neutral.
■ Sector allocation was the main driver ofoutperformance and driven primarily by theFund’s holdings in CMBS, Financial Institutionsand Industrials.
■ Security selection was neutral for the trailingtwelve months.
3-Month Review■ The Fund’s duration positioning was neutral.
■ Curve positioning detracted.
■ Sector allocation was the main contributorwith Corporates and securitized exposuresleading performance.
■ Security selection was neutral.
Current Positioning
■ The Fund maintains a slight duration overweight.
■ The Fund has maintained its “barbelled”positioning relative to the benchmark inanticipation of a continued flattening of the yieldcurve.
■ The Fund is overweight non-Treasury sectors.High yield exposure has remained around 5%recently and stands at 3% on December 31st.Those holdings are focused primarily in BBand B rated securities.
Attribution 3-MONTH 1-YEAR
Duration -0.02 -0.09
Curve -0.11 0.02
Sector Allocation 0.23 1.00
Security Selection 0.00 0.00
Total 0.10 0.93
Source: FactSet. All attribution is based on gross portfolio performance.
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 17
Effective Duration %FUND BENCHMARK
<1 Year 22.3 3.3
1-3 Years 40.6 60.5
3-5 Years 30.1 36.2
5-7 Years 5.9 0.0
7-10 Years 1.0 0.0
10-20 Years 0.1 0.0
>20 Years 0.0 0.0
Market Sector Analysis %Treasuries Agencies Industrials Finance Utilities Supra-
national Sovereign MBS CMO CMBS ABS Municipals CoveredBonds
Merger/Arbitrage Cash
Fund 12.5 1.9 19.0 16.4 1.2 0.0 0.0 4.2 0.6 17.0 13.2 2.8 0.0 9.4 1.7Benchmark 65.2 4.7 13.7 10.7 1.1 3.2 0.7 0.0 0.0 0.0 0.0 0.7 0.0 0.0 0.0Active Weights -52.7 -2.8 5.3 5.6 0.1 -3.2 -0.7 4.2 0.6 17.0 13.2 2.1 0.0 9.4 1.7
Credit Quality %FUND BENCHMARK
AAA 42.5 71.3
AA 10.2 4.8
A 21.6 11.8
BBB 19.7 12.1
Below BBB 5.8 0.0
Risk Metrics (5yr)CHARACTERISTICS FUND BENCHMARK
Standard Deviation 1.1 1.4
Tracking Error 0.7 0.0
Sharpe Ratio 1.6 0.7
Information Ratio 1.2 N/A
Upside Capture 101.5 100.0
Downside Capture 21.8 100.0
Portfolio AnalysisSTATISTICS FUND BENCHMARK
Average Maturity (years) 2.9 2.7
Effective Duration (years) 2.4 2.6
Average Quality A+ AA
Yield-to-Maturity 2.6% 1.8%
Current Yield 3.4% 2.2%
# of Securities 288 2,919
Objective Current income and long-term capital appreciation
InvestmentsU.S. government, agency, corporate, mortgage- and asset-backed securities (below-BBB permitted to 20% of assets); Merger-arbitrage strategy, opportunistic / modest use
StrategyUses top down macroeconomic analysis, along with fundamental research to capture inefficiencies in the valuation of sectors and individual securities; combined with duration management (+/– 2.5 years of the benchmark) in pursuit of above-benchmark returns over a full market cycle
BenchmarkBloomberg Barclays 1-5 Year Government/Credit Index
Asset ManagersLongfellow Invst. Mgmt. (Effective 2013) Brandywine Global Invst. Mgmt. (Effective 2019)
Total Expense Ratio / Minimum Class A: 0.54% / No MinimumClass B: 0.39% / $5M
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Opportunistic Bond Fund
Fund Performance
CUIT Opportunistic Bond Fund Class A
CUIT Opportunistic Bond Fund Class B
Bloomberg Barclays 1-5 Yr Gov’t/Credit
6%
4%
2%
0%3 MO 1 YR 3 YR 5 YR 10 YR
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Opportunistic Bond Fund Class A 0.59 5.35 2.58 2.25 -
CUIT Opportunistic Bond Fund Class B 0.69 5.56 2.75 2.43 -
Bloomberg Barclays 1-5 Yr Gov’t/Credit Index 0.50 5.01 2.54 2.03 -
CALENDAR YEAR RETURN 2019 2018 2017 2016 2015
CUIT Opportunistic Bond Fund Class A 5.35 0.82 1.63 2.54 0.98
CUIT Opportunistic Bond Fund Class B 5.56 0.96 1.78 2.69 1.23
Bloomberg Barclays 1-5 Yr Gov’t/Credit Index 5.01 1.38 1.27 1.56 0.97
Source: BNY Mellon, SS&C. Please see Important Disclosures on Page 2.
Source: FactSet. Bond allocation excludes mergers and acquisitions.
Source: eVestment
Source: FactSet. Includes cash.
Source: FactSet
Source: FactSet
Total Fund Value $466.6 MMCUIT Opportunistic Bond Fund Class A $48.6 MM
CUIT Opportunistic Bond Fund Class B $300.0 MM
CUIT Opportunistic Bond Fund in Magnus® $118.0MM
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 18
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Opportunistic Bond Fund
Important InformationBenchmark Index: Bloomberg Barclays 1–5 Year U.S. Govt/Credit Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative index represents unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but is not necessarily intended to parallel the risk or investment approach of your investments. The index does not incur taxes or expenses but is inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the index may be obtained from our provider or CBIS.
Bloomberg Index Services Limited: BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
CBIS offers pooled funds on behalf of a not-for-profit investment trust, the Catholic United Investment Trust (CUIT) Offering Memorandum, which contains further information, is available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Fund. Commingled Fund exclusively for tax-exempt Catholic institutions. All assets are invested in accordance with CBIS’ Catholic Responsible Investing Guidelines. Total expense ratio includes management fee and all other fees (accounting, custody and transfer agent). The Funds provide daily NAV and daily liquidity.
12-Month Review■ Contributions from curve positioning, sector
allocation, and security selection more thanoffset the negative impact of the durationposition within the bond only portfolio.
■ Shorter average duration detracted from results.
■ Curve positioning was slightly additive.
■ Sector allocation was the strongest contributor,underweight to Treasuries and overweight toCorporate sectors delivered positive results. Anoverweight to ABS was the primary detractor.
■ Security selection also contributed, as holdingswithin Industrials and Treasuries outperformed.
■ The Merger Arbitrage portfolio contributedsignificantly.
3-Month Review
■ The Fund’s duration posture had little impact.
■ Yield curve positioning was slightly negative forthe period.
■ Sector allocation was a big contributor, as theFund’s underweight to Treasuries and overweight in Corporates positively impacted returns.
■ Security selection was positive for the period.Specific holdings within Industrials accounted formuch of the positive stock selection results.
■ The Merger Arbitrage outpaced both thebenchmark and the bond only portfolios,which was additive.
Current Positioning■ The Fund’s duration is shorter relative to the
benchmark.
■ The Fund is positioned toward a neutral to slightflattening across the yield curve.
■ Sector exposure emphasizes Corporates andsecuritized areas, which is supported by acontinued underweight to Treasuries.
■ The Fund’s allocation to high yield securities ispredominately held in BB and B credit buckets.
Attribution 3-MONTH 1-YEAR
Duration 0.01 -0.19
Curve -0.10 0.08
Sector Allocation 0.13 0.60
Security Selection 0.13 0.27
Total 0.16 0.76
Source: FactSet. All attribution is based on gross portfolio performance.
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 19
Risk Metrics (5yr)CHARACTERISTICS FUND BENCHMARK
Standard Deviation 2.9 3.1
Tracking Error 0.6 0.0
Sharpe Ratio 0.9 0.7
Information Ratio 1.0 N/A
Upside Capture 103.2 100.0
Downside Capture 83.4 100.0
Effective Duration %FUND BENCHMARK
<1 Year 11.9 1.2
1-3 Years 30.9 33.0
3-5 Years 24.6 31.2
5-7 Years 8.1 11.2
7-10 Years 12.2 6.7
10-20 Years 10.6 15.8
>20 Years 1.7 0.9
Portfolio AnalysisSTATISTICS FUND BENCHMARK
Average Maturity (years) 7.4 7.9
Effective Duration (years) 5.1 5.8
Average Quality A+ AA
Yield-to-Maturity 2.7% 2.3%
Current Yield 3.4% 2.6%
# of Securities 700 10,982
Objective Current income and long-term capitalappreciation
InvestmentsU.S. government and agency securities, Corporate bonds, mortgage- and asset-backed securities (below-BBB permitted up to 10% of total Fund assets)
StrategyUses top down macroeconomic analysis, along with fundamental research, to capture inefficiencies in the valuation of sectors and individual securities; combined with duration management (+/– 20% of the benchmark) in pursuit of above-benchmark returns over a fullmarket cycle
BenchmarkBloomberg Barclays Aggregate Bond Index
Asset ManagersDodge & Cox, Inc. (Effective 1995)SLC Management (Effective 2019)* Brandywine Global Invst. Mgmt. (Effective 2019)
Total Expense Ratio / Minimum Class A: 0.54% / No MinimumClass B: 0.39% / $5M
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Int. Diversified Bond Fund
Fund Performance
CUIT Int. Divers. Bond A
CUIT Int. Divers. Bond B
Bloomberg Barclays Aggregate Bond Index
10%8%6%4%2%
03 MO 1 YR 3 YR 5 YR 10 YR
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Int. Diversified Bond Fund Class A 0.28 8.78 3.99 3.06 3.94
CUIT Int. Diversified Bond Fund Class B 0.28 8.93 4.14 3.20 4.09
Bloomberg Barclays Aggregate Bond Index 0.18 8.72 4.03 3.05 3.75
CALENDAR YEAR RETURN 2019 2018 2017 2016 2015
CUIT Int. Diversified Bond Fund Class A 8.78 0.00 3.38 3.53 (0.13)
CUIT Int. Diversified Bond Fund Class B 8.93 0.14 3.54 3.69 (0.05)
Bloomberg Barclays Aggregate Bond Index 8.72 0.01 3.54 2.65 0.55
Source: BNY Mellon, SS&C. Please see Important Disclosures on Page 2.
Source: FactSet
Source: eVestment Source: eVestment
Source: FactSet
Credit Quality %FUND BENCHMARK
AAA 51.1 72.0
AA 3.7 3.2
A 15.0 10.5
BBB 21.5 13.1
Below BBB 6.8 1.2
Cash 1.8 0.0
Market Sector Analysis %Treasuries Agencies Industrials Finance Utilities Supra-
national Sovereign MBS CMO CMBS ABS Municipals CoveredBonds
Merger/Arbitrage Cash
Fund 25.0 1.3 16.7 15.4 1.5 0.0 0.0 18.1 1.3 10.3 7.5 0.9 0.0 0.0 1.8Benchmark 39.5 2.5 15.5 7.9 1.9 1.3 1.0 27.0 0.0 2.0 0.5 0.9 0.0 0.0 0.0Active Weights -14.5 -1.1 1.3 7.5 -0.4 -1.3 -1.0 -8.9 1.3 8.3 7.1 -0.1 0.0 0.0 1.8
Source: FactSet
Total Fund Value $1,392.7 MMCUIT Int. Diversified Bond Fund Class A $83.5 MM
CUIT Int. Diversified Bond Fund Class B $1,073.9 MM
CUIT Int. Diversified Bond Fund in Magnus® $235.2 MM
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 20
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Int. Diversified Bond Fund
Important InformationBenchmark Index: Bloomberg Barclays Aggregate Bond Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative index represents unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but is not necessarily intended to parallel the risk or investment approach of your investments. The index does not incur taxes or expenses but is inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the index may be obtained from our provider or CBIS.
Bloomberg Index Services Limited: BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
CBIS offers pooled funds on behalf of a not-for-profit investment trust, the Catholic United Investment Trust (CUIT) Offering Memorandum, which contains further information, is available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Fund. Commingled Fund exclusively for tax-exempt Catholic institutions. All assets are invested in accordance with CBIS’ Catholic Responsible Investing Guidelines. Total expense ratio includes management fee and all other fees (accounting, custody and transfer agent). The Funds provide daily NAV and daily liquidity.
12-Month Review■ The Fund’s shorter than benchmark duration
had a negative impact.
■ Curve positioning had a positive impact.
■ Sector positioning had a meaningful impact forthe period, driven by the Fund’s overweightto Corporates, especially Financials, andunderweight to MBS and U.S. Treasuries.
■ Security selection was the biggest driver duelargely to selection within the Industrial bond, Agency and CMBS sectors. Selection within MBS and Financials detracted.
3-Month Review
■ Sector allocation added to relativeperformance, especially the overweight toFinancials and underweight to U.S.Treasuries.
■ The Fund’s shorter relative durationcontributed as rates moved higher forlonger dated securities.
■ Curve positioning had a modest positiveimpact on relative results.
Current Positioning■ The relatively shorter effective duration
declined modestly during the quarter.
■ There was a modest shift from the longer partof the curve to the shorter.
■ Corporate credit overweight; the positioning inhigh yield credits increased. Within securitized,MBS is the largest underweight and ABSthe largest overweight. U.S. Treasuries areunderweight.
Attribution 3-MONTH 1-YEAR
Duration 0.08 -0.16
Curve 0.02 0.10
Sector Allocation 0.13 0.37
Security Selection 0.03 0.41
Total 0.26 0.73
Source: FactSet. All attribution is based on gross portfolio performance.
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 21
Risk Metrics (5yr)CHARACTERISTICS FUND BENCHMARK
Standard Deviation 12.1 11.9
Tracking Error 0.6 0.0
Sharpe Ratio 0.8 0.8
Information Ratio 0.6 N/A
Upside Capture 102.8 100.0
Downside Capture 101.3 100.0
Top Ten HoldingsNAME %
Microsoft Corporation 5.0
Apple Inc. 4.7
Alphabet Inc. 3.2
Amazon.com, Inc. 2.9
Berkshire Hathaway Inc. 2.3
Facebook, Inc. 1.9
JPMorgan Chase & Co. 1.6
Coca-Cola Company 1.2
Visa Inc. 1.2
Abbott Laboratories 1.2
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Core Equity Index Fund
Fund Performance
CUIT Core Equity A
CUIT Core Equity B
S&P 500 Index
40%
30%
20%
10%
0%3 MO 1 YR 3 YR 5 YR 10 YR
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Core Equity A 8.80 32.05 15.60 11.50 13.27
CUIT Core Equity B 8.87 32.33 15.83 11.73 13.50
S&P 500 9.07 31.49 15.27 11.70 13.56
CALENDAR YEAR RETURN 2019 2018 2017 2016 2015
CUIT Core Equity A 32.05 (4.62) 22.64 11.27 0.29
CUIT Core Equity B 32.33 (4.42) 22.87 11.51 0.50
S&P 500 31.49 (4.38) 21.83 11.96 1.38
Source: BNY Mellon. Please see Important Information on page 2.
Source: FactSet
Source: FactSet
Source: eVestment
Source: FactSet
Portfolio AnalysisSTATISTICS FUND BENCHMARK
Weighted Median Market Cap $101.5B $126.5B
Price/Book 3.4x 3.5x
Price/Earnings 23.0x 22.9x
Return on Equity 25.8% 24.5%
Dividend Yield 1.7% 1.8%
5-year Earnings Growth 14.8% 14.3%
Beta 1.0 1.0
Active Share 14.8 N/A
10 Largest Holdings 25.3 22.7
# of Equity Securities 463 505
Turnover Rate 23.8 N/A
Market Sector Analysis %Communication
ServicesConsumer
DiscretionaryConsumer
Staples Energy Financials Health Care Industrials Information
Technology Materials Real Estate Utilities Cash
Fund 10.8 9.8 6.8 4.3 13.6 12.1 8.6 23.7 3.1 3.4 3.3 0.5Benchmark 10.4 9.8 7.2 4.3 13.0 14.2 9.1 23.2 2.7 2.9 3.3 0.0Active Weights 0.4 0.0 -0.4 -0.1 0.6 -2.1 -0.5 0.5 0.4 0.5 0.0 0.5
Objective Long-term capital appreciation
InvestmentsEquity securities in S&P 500 except those screened by CBIS’ Catholic investment screens criteria
StrategyCounter the impact of screens by overweighting select holdings so that the Fund’s broad quantitative characteristics match those of the S&P 500 as closely as possible
BenchmarkS&P 500 Index
Asset ManagersRhumbLine Advisers (Effective 1995)
Total Expense Ratio / Minimum Class A: 0.39% / No Minimum Class B: 0.19% / $3M
Total Fund Value $2,223.0 MMCUIT Core Equity Fund Class A $76.3 MM
CUIT Core Equity Fund Class B $1,473.1 MM
CUIT Core Equity Fund Class C $414.3 MM
CUIT Core Equity Fund in Magnus® $259.4 MM
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 22
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Core Equity Index Fund
Important InformationBenchmark Index: S&P 500 Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative index represents unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but is not necessarily intended to parallel the risk or investment approach of your investments. The index does not incur taxes or expenses but is inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the index may be obtained from our provider or CBIS.
The S&P 500 Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by CBIS. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by CBIS. The CUIT Core Equity Index Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.
The securities identified and described do not represent all of the securities purchased, sold or recommended for investor accounts. The reader should not assume that an investment in the securities identified was or will be profitable. For a complete list of securities offered during the period, please contact CBIS.
CBIS offers pooled funds on behalf of a not-for-profit investment trust, the Catholic United Investment Trust (CUIT) Offering Memorandum, which contains further information, is available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Fund. Commingled Fund exclusively for tax-exempt Catholic institutions. All assets are invested in accordance with CBIS’ Catholic Responsible Investing Guidelines. Total expense ratio includes management fee and all other fees (accounting, custody and transfer agent). The Funds provide daily NAV and daily liquidity.
12-Month Review■ Outperformance of the Fund was due primarily
to not owning weaker performing names inHealth Care.
■ Industrials in aggregate detracted, which wasdriven by restricting outperforming securities.
■ Information Technology sector was additive,due primarily from re-weighting to two names.
■ Consumer staples detracted.
3-Month Review■ Underperformance was concentrated in Health
Care and Consumer Staples. This was partiallyoffset by performance in Industrials andInformation Technology.
■ Restrictions on large pharmaceutical holdingsdetracted during the quarter. Reweighting tosmaller issues partially offset underperformance.
■ Within Industrials restricted names werethe main detractors of results for aerospaceand defense.
Current Positioning
■ The Fund is positioned very similarly to theS&P 500 index.
■ Catholic Responsible InvestmentsSM restrictionsare most prominent in Health Care, ConsumerStaples, and Industrials.
■ Currently, the Fund is underweight in HealthCare. Within the sector, the pharmaceutical is underweight. Health Care equipment and services stocks are overweight.
All attribution is based on gross portfolio performance.
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 23
Risk Metrics (5yr)CHARACTERISTICS FUND BENCHMARK
Standard Deviation 13.7 12.0
Tracking Error 3.6 0.0
Sharpe Ratio 0.5 0.6
Information Ratio -0.1 N/A
Upside Capture 108.0 100.0
Downside Capture 110.5 100.0
Top Ten HoldingsNAME %
Cigna Corporation 2.6
Alphabet Inc. 2.4
Medtronic Public Limited Company 2.2
Capital One Financial Corporation 2.2
Wells Fargo & Company 2.1
Comcast Corporation 2.1
Charter Communications, Inc. 2.1
MetLife, Inc. 2.0
Charles Schwab Corporation 2.0
Microsoft Corporation 1.9
Portfolio AnalysisSTATISTICS FUND BENCHMARK
Weighted Median Market Cap $38.5B $65.0B
Price/Book 1.8x 2.1x
Price/Earnings 15.8x 18.5x
Return on Equity 16.2% 14.0%
Dividend Yield 1.9% 2.4%
5-year Earnings Growth 9.9% 6.6%
Beta 1.1 1.0
Active Share 73.5 N/A
10 Largest Holdings 21.4 4.6
# of Equity Securities 159 764
Turnover Rate 70.1 N/A
Objective Long-term capital growth of capital
InvestmentsHigh-quality companies, $1 billion+ market caps, that appear underpriced relative to traditional value metrics
StrategyCombines complementary managers seeking undervalued securities, one using fundamental, bottom-up analysis; the other using quantitative multi-factor modeling
BenchmarkRussell 1000 Value Index
Asset ManagersDodge & Cox (Effective 2000)AJO (Effective 2002)
Total Expense Ratio / Minimum Class A: 1.04% / No MinimumClass B: 0.68% / $5M
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Value Equity Fund
Fund Performance
CUIT Value Equity A
CUIT Value Equity B
Russell 1000 Value Index
30%25%15%10%5%0%
3 MO 1 YR 3 YR 5 YR 10 YR
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Value Equity Fund Class A 7.71 23.06 8.23 6.86 10.94
CUIT Value Equity Fund Class B 7.80 23.50 8.63 7.24 11.33
Russell 1000 Value Index 7.41 26.54 9.68 8.29 11.80
CALENDAR YEAR RETURN 2019 2018 2017 2016 2015
CUIT Value Equity Fund Class A 23.06 (11.58) 16.53 13.98 (3.58)
CUIT Value Equity Fund Class B 23.50 (11.27) 16.96 14.41 (3.26)
Russell 1000 Value Index 26.54 (8.27) 13.66 17.34 (3.83)
Source: BNY Mellon. Please see Important Information on page 2.
Source: FactSet
Source: FactSet
Source: eVestment
Source: FactSet.
Market Sector Analysis %Communication
ServicesConsumer
DiscretionaryConsumer
Staples Energy Financials Health Care Industrials Information
Technology Materials Real Estate Utilities Cash
Fund 11.9 5.3 4.6 8.6 26.9 12.3 7.6 13.2 2.7 2.1 2.8 1.8Benchmark 8.2 5.9 8.9 8.2 23.9 13.0 9.7 6.3 4.3 5.2 6.6 0.0Active Weights 3.7 -0.6 -4.2 0.4 3.0 -0.6 -2.0 7.0 -1.6 -3.0 -3.8 1.8
Total Fund Value $328.7 MMCUIT Value Equity Fund Class A $66.1 MM
CUIT Value Equity Fund Class B $149.0 MM
CUIT Value Equity Fund in Magnus® $113.6 MM
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 24
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Value Equity FundAttribution 12-MONTHS 3-MONTHS
AVG. WEIGHT RELATIVE RETURN CONTRIBUTION AVG. WEIGHT RELATIVE RETURN CONTRIBUTION
Sector Fund Index SectorAllocation
Security Selection Total Fund Index Sector
AllocationSecurity Selection Total
Communication Services 12.13 7.49 0.13 0.22 0.35 12.02 8.21 -0.02 0.08 0.06
Consumer Discretionary 5.79 5.81 0.00 -0.94 -0.94 5.37 5.97 0.02 -0.20 -0.18
Consumer Staples 4.48 8.41 -0.02 -0.45 -0.47 4.69 8.95 0.17 -0.11 0.06
Energy 9.03 8.91 -0.03 -0.08 -0.10 8.23 8.15 0.01 0.11 0.12
Financials 25.44 23.10 0.05 0.49 0.53 26.41 23.91 0.06 0.15 0.21
Health Care 11.57 13.84 0.24 0.46 0.69 11.78 12.71 -0.04 0.38 0.34
Industrials 7.84 8.67 -0.02 -1.13 -1.15 8.20 9.63 -0.01 -0.36 -0.37
Information Technology 13.45 7.86 0.72 -1.45 -0.73 13.19 6.15 0.33 -0.60 -0.26
Materials 2.59 4.16 0.09 0.34 0.43 2.73 4.28 -0.01 -0.01 -0.02
Real Estate 2.27 5.22 -0.04 -0.04 -0.08 2.27 5.36 0.23 0.20 0.43
Utilities 2.91 6.53 0.04 -0.26 -0.22 2.97 6.69 0.27 0.06 0.32
Cash 2.50 - -0.68 - -0.68 2.15 - -0.15 - -0.15
Total 100.00 100.00 0.49 -2.85 -2.36 100.00 100.00 0.86 -0.29 0.57
Source: FactSet. All attribution is based on gross portfolio performance.
Important Information
Benchmark Index: Russell 1000 Value Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative indices represent unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but are not necessarily intended to parallel the risk or investment approach of your investments. The indices do not incur taxes or expenses but are inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the indices may be obtained from our provider or CBIS.
The securities identified and described do not represent all of the securities purchased, sold or recommended for investor accounts. The reader should not assume that an investment in the securities identified was or will be profitable. For a complete list of securities offered during the period, please contact CBIS.
CBIS offers pooled funds on behalf of a not-for-profit investment trust, the Catholic United Investment Trust (CUIT) Offering Memorandum, which contains further information, is available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Fund. Commingled Fund exclusively for tax-exempt Catholic institutions. All assets are invested in accordance with CBIS’ Catholic Responsible Investing Guidelines. Total expense ratio includes management fee and all other fees (accounting, custody and transfer agent). The Funds provide daily NAV and daily liquidity.
12-Month Review
■ Sector allocation was slightly positive with allunderperformance coming from stock selection.
■ The Fund’s overweight to Information Technologyand underweight to Health Care were beneficial.Other sector positions had little impact.
■ Stock selection was the primary cause ofunderperformance with negative relative resultsin Industrials, Information Technology, andConsumer Discretionary driving overall Fund performance.
3-Month Review■ Results was attributable to positive
sector positioning as stock selection wasslightly negative.
■ Underweights to Consumer Staples, Real Estate,and Utilities combined with an overweight toInformation Technology were the main driversof outperformance. Other sector allocations had negligible impact.
■ Stock selection was mixed, but negative overall with the underperformance of holdings in Information Technology, Consumer Discretionary, and Industrials dominating.
Current Positioning■ The Fund’s positioning generally does not
change much quarter to quarter or evenannually in terms of sector exposures andother portfolio characteristics.
■ The Fund’s overweights in CommunicationsServices, Information technology, and Financialsare consistent with positioning in recent quarters— as are the underweights to Health Care,Consumer Staples, Real Estate, and Utilities.
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 25
Objective Long-term growth of capital
InvestmentsCommon stocks of U.S. companies with market caps greater than $500 million, exhibiting sustainable, above-average earnings growth
StrategyFocus on mid- and large-cap stocks that exhibit sustainable, above-average earnings growth; blends a quantitative manager and a fundamental manager to construct a more concentrated portfolio
BenchmarkRussell 1000 Growth Index
Asset ManagersWellington Mgmt. (Effective 2004) Los Angeles Capital Mgmt. (Effective 2009)
Total Expense Ratio / Minimum Class A: 1.15% / No MinimumClass B: 0.85% / $5M
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Growth Fund
Fund Performance
CUIT Growth Fund A
CUIT Growth Fund B
Russell 1000 Growth Index
40%30%20%10%0%
3 MO 1 YR 3 YR 5 YR 10 YR
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Growth Fund A 9.25 33.46 18.54 13.07 13.77
CUIT Growth Fund B 9.33 33.87 18.90 13.42 14.12
Russell 1000 Growth Index 10.62 36.39 20.49 14.63 15.22
CALENDAR YEAR RETURN 2019 2018 2017 2016 2015
CUIT Growth Fund A 33.46 (0.45) 25.38 5.37 5.29
CUIT Growth Fund B 33.87 (0.16) 25.77 5.69 5.63
Russell 1000 Growth Index 36.39 (1.51) 30.21 7.08 5.67
Source: BNY Mellon. Please see Important Information on page 2.
Source: FactSet
Source: FactSet
Source: eVestment
Source: FactSet
Portfolio AnalysisSTATISTICS FUND BENCHMARK
Weighted Median Market Cap $127.0B $141.8B
Price/Book 7.0x 8.1x
Price/Earnings 28.4x 29.3x
Return on Equity 33.0% 32.3%
Dividend Yield 0.9% 1.1%
5-year Earnings Growth 20.4% 21.1%
Beta 1.0 1.0
Active Share 40.4 N/A
10 Largest Holdings 40.1 35.6
# of Equity Securities 209 530
Turnover Rate 95.3 N/A
Risk Metrics (5yr)CHARACTERISTICS FUND BENCHMARK
Standard Deviation 12.4 12.9
Tracking Error 1.7 0.0
Sharpe Ratio 1.1 1.1
Information Ratio -0.1 N/A
Upside Capture 96.2 100.0
Downside Capture 95.3 100.0
Top Ten HoldingsNAME %
Microsoft Corporation 8.8
Apple Inc. 8.3
Alphabet Inc. 5.9
Facebook, Inc. 4.3
Amazon.com, Inc. 3.9
Visa Inc. 2.6
Mastercard Incorporated 2.1
Costco Wholesale Corporation 1.4
Abbott Laboratories 1.3
QUALCOMM Incorporated 1.3
Market Sector Analysis %Communication
ServicesConsumer
DiscretionaryConsumer
Staples Energy Financials Health Care Industrials Information
Technology Materials Real Estate Utilities Cash
Fund 11.6 13.4 4.0 0.0 6.7 10.0 8.9 40.6 1.9 1.5 0.0 1.3Benchmark 11.6 13.8 4.6 0.3 3.1 14.7 9.3 38.9 1.3 2.4 0.0 0.0Active Weights 0.1 -0.4 -0.6 -0.3 3.6 -4.7 -0.3 1.7 0.6 -0.9 0.0 1.3
Total Fund Value $363.3 MMCUIT Growth Fund Class A $72.9 MM
CUIT Growth Fund Class B $175.0 MM
CUIT Growth Fund in Magnus® $115.4 MM
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 26
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Growth FundAttribution 12-MONTHS 3-MONTHS
AVG. WEIGHT RELATIVE RETURN CONTRIBUTION AVG. WEIGHT RELATIVE RETURN CONTRIBUTION
Sector Fund Index SectorAllocation
Security Selection Total Fund Index Sector
AllocationSecurity Selection Total
Communication Services 11.48 11.94 -0.12 -0.38 -0.51 11.63 11.65 0.00 -0.03 -0.02
Consumer Discretionary 16.01 14.73 -0.21 -0.38 -0.59 14.68 14.00 -0.08 -0.13 -0.21
Consumer Staples 4.23 5.26 -0.02 -0.29 -0.32 4.13 4.77 0.03 -0.07 -0.04
Energy 0.07 0.51 0.16 -0.08 0.08 - 0.26 0.01 - 0.01
Financials 5.72 3.78 -0.13 0.05 -0.08 6.45 3.14 -0.05 -0.08 -0.13
Health Care 10.22 13.82 -0.03 0.93 0.90 8.91 14.54 -0.32 -0.52 -0.85
Industrials 8.60 10.73 -0.15 0.33 0.18 9.11 9.63 0.04 0.32 0.36
Information Technology 38.90 35.21 0.40 -0.50 -0.11 39.61 38.23 -0.00 0.00 0.00
Materials 1.16 1.61 -0.11 0.06 -0.05 1.90 1.39 -0.05 0.05 -0.00
Real Estate 2.46 2.41 -0.10 -0.09 -0.19 2.00 2.42 0.00 -0.06 -0.06
Utilities - - - - - - - - - -
Cash 1.16 - -0.56 - -0.56 1.59 - -0.19 - -0.19
Total 100.00 100.00 -0.89 -0.35 -1.24 100.00 100.00 -0.60 -0.52 -1.12
Source: FactSet. All attribution is based on gross portfolio performance.
Important InformationBenchmark Index: The Fund’s benchmark was changed to the Russell 1000 Growth Index effective June 1, 2000. For prior periods, the benchmark was the Russell Mid-Cap Growth Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative index represents unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but is not necessarily intended to parallel the risk or investment approach of your investments. The index does not incur taxes or expenses but is inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the index may be obtained from our provider or CBIS.
The securities identified and described do not represent all of the securities purchased, sold or recommended for investor accounts. The reader should not assume that an investment in the securities identified was or will be profitable. For a complete list of securities offered during the period, please contact CBIS.
CBIS offers pooled funds on behalf of a not-for-profit investment trust, the Catholic United Investment Trust (CUIT) Offering Memorandum, which contains further information, is available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Fund. Commingled Fund exclusively for tax-exempt Catholic institutions. All assets are invested in accordance with CBIS’ Catholic Responsible Investing Guidelines. Total expense ratio includes management fee and all other fees (accounting, custody and transfer agent). The Funds provide daily NAV and daily liquidity.
12-Month Review
■ After a sharp decline in valuations inQ4 2018, U.S. Large Cap Growth stocks rebounded dramatically in 2019.
■ Sector allocation detracted. The overweightto Information Technology helped whileother allocations provided mixed results. The transactional cash position was a drag on performance and more than offset gains.
■ While selection was an overall detractor,favorable stock selection within theHealth Care sector added.
■ The benefit from stock selection within HealthCare was more than offset by selection decisionsin Information Technology, CommunicationsServices, Consumer Discretionary and ConsumerStaples.
3-Month Review■ The Fund underperformed the benchmark.
■ Underweight to Health Care plus securityselection decisions detracted. This was somewhatmitigated by selection within Industrials.
Current Positioning■ Sector weights are fairly close to the benchmark
index. Health Care is the largest underweightand Financials is the largest overweight.
■ The Fund has a very low Tracking Error relativeto peers.
■ The Fund places a premium on companies thatare reasonably valued. As such, the Fund shouldprovide some downside protection in rapidlydeclining markets.
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 27
Risk Metrics (5yr)CHARACTERISTICS FUND BENCHMARK
Standard Deviation 16.1 16.2
Tracking Error 0.2 0.0
Sharpe Ratio 0.5 0.5
Information Ratio 0.5 N/A
Upside Capture 99.9 100.0
Downside Capture 99.5 100.0
Top Ten HoldingsNAME %
Medicines Company 0.8
Darling Ingredients Inc. 0.6
LHC Group, Inc. 0.5
Glacier Bancorp, Inc. 0.5
Community Bank System, Inc. 0.5
John Bean Technologies Corporation 0.5
Exponent, Inc. 0.5
TopBuild Corp. 0.4
Strategic Education, Inc. 0.4
RH 0.4
Portfolio AnalysisSTATISTICS FUND BENCHMARK
Weighted Median Market Cap $1.9B $1.9B
Price/Book 1.8x 1.8x
Price/Earnings 18.6x 18.6x
Return on Equity 9.5% 9.7%
Dividend Yield 1.6% 1.6%
5-year Earnings Growth 8.1% 7.9%
Beta 1.0 1.0
Active Share 2.2 N/A
10 Largest Holdings 5.2 5.1
# of Equity Securities 596 601
Turnover Rate 45.7 N/A
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Small Cap Equity Index Fund
Fund Performance
CUIT Small Cap Equity A
CUIT Small Cap Equity B
S&P SmallCap 600 Index
25%20%15%10%5%0%
3 MO 1 YR 3 YR 5 YR 10 YR
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Small Cap Equity Fund Class A 8.20 22.24 8.41 7.92 11.35
CUIT Small Cap Equity Fund Class B 8.21 22.58 8.74 8.23 11.69
S&P SmallCap 600 Index 8.21 22.78 8.99 8.47 11.95
CALENDAR YEAR RETURN 2019 2018 2017 2016 2015
CUIT Small Capitalization Equity Fund Class A 22.24 (8.90) 14.43 20.60 (4.75)
CUIT Small Capitalization Equity Fund Class B 22.58 (8.63) 14.81 20.97 (4.53)
S&P SmallCap 600 Index 22.78 (8.48) 15.22 21.31 (4.41)
Source: BNY Mellon. Please see Important Information on page 2.
Source: FactSet
Source: FactSet
Source: eVestment
Source: FactSet
Market Sector Analysis %Communication
ServicesConsumer
DiscretionaryConsumer
Staples Energy Financials Health Care Industrials Information
Technology Materials Real Estate Utilities Cash
Fund 2.1 13.9 4.1 4.2 17.4 12.0 17.3 13.7 4.9 7.4 2.2 0.8Benchmark 2.1 14.0 4.3 4.2 17.5 12.2 17.5 13.8 4.9 7.4 2.2 0.0Active Weights 0.0 -0.1 -0.2 0.0 -0.1 -0.2 -0.2 -0.1 0.0 0.0 0.0 0.8
Objective Long-term capital appreciation by attempting to replicate the performance of the S&P Small Cap 600
InvestmentsCommon stocks that generally comprise the S&P SmallCap 600
StrategyClosely track the benchmark, while seeking replacements for screened stocks with similar market capitalizations in the same or a related industry
BenchmarkS&P SmallCap 600 Index
Asset ManagersRhumbLine Advisers (Effective 2007)
Total Expense Ratio / Minimum Class A: 0.58% / No MinimumClass B: 0.29% / $3M
Total Fund Value $434.1 MMCUIT Small Cap Equity Fund Class A $59.3 MM
CUIT Small Cap Equity Fund Class B $298.7 MM
CUIT Small Cap Equity Fund in Magnus® $76.1 MM
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 28
■ Industrials added to relative performancefrom restricting two stocks.
■ The Health Care sector added to relativeperformance from restricting three stocks,and a stock re-weighting.
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Small Cap Equity Index Fund
Important InformationBenchmark Index: The Fund’s benchmark was changed to the S&P SmallCap 600 Index effective November 1, 2017. For periods prior to November 1, 2017, the benchmark was the Russell 2000 Index. Performance for periods of one year and longer are annualized. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative index represents unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but is not necessarily intended to parallel the risk or investment approach of your investments. The index does not incur taxes or expenses but is inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the index may be obtained from our provider or CBIS.
The S&P SmallCap 600 Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by CBIS. Standard & Poor’s® a nd S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by CBIS. The CUIT Small Capitalization Equity Index Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P SmallCap 600 Index.
The securities identified and described do not represent all of the securities purchased, sold or recommended for investor accounts. The reader should not assume that an investment in the securities identified was or will be profitable. For a complete list of securities offered during the period, please contact CBIS.
CBIS offers pooled funds on behalf of a not-for-profit investment trust, the Catholic United Investment Trust (CUIT) Offering Memorandum, which contains further information, is available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Fund. Commingled Fund exclusively for tax-exempt Catholic institutions. All assets are invested in accordance with CBIS’ Catholic Responsible Investing Guidelines. Total expense ratio includes management fee and all other fees (accounting, custody and transfer agent). The Funds provide daily NAV and daily liquidity.
12-Month Review
■ Health Care benefitted results for the period.Restrictions in pharmaceuticals issues were additive.
■ Consumer Discretionary positively contributedto relative performance driven by gains fromrestricting two stocks.
■ Industrials were additive.
3-Month Review Current Positioning■ The Fund is positioned very similarly to the
S&P 600 index.
• CRI restrictions are most prominent in HealthCare, Consumer Staples, and Industrials.
• Since restricted securities comprise less than2% of the S&P 600 index, this Fund will almostalways closely track the index.
All attribution is based on gross portfolio performance
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 29
Top Ten HoldingsNAME %
Taiwan Semiconductor Manufacturing Co., Ltd. 2.5
Tencent Holdings Ltd. 2.3
Nestle S.A. 2.1
LVMH Moet Hennessy Louis Vuitton SE 1.8
Volkswagen AG 1.8
Alibaba Group Holding Ltd. 1.6
BASF SE 1.5
Canadian Pacific Railway Limited 1.4
ASML Holding NV 1.4
Shopify, Inc. 1.4
Portfolio AnalysisSTATISTICS FUND BENCHMARK
Weighted Median Market Cap $46.7B $36.6B
Price/Book 2.1x 1.7x
Price/Earnings 17.0x 15.6x
Return on Equity 18.3% 15.3%
Dividend Yield 2.4% 3.1%
5-year Earnings Growth 13.0% 10.1%
Beta 1.1 1.0
Active Share 72.1 N/A
10 Largest Holdings 17.9 7.4
# of Equity Securities 356 2,412
Turnover Rate 34.4 N/A
Objective Long-term growth of capital
InvestmentsBroad mix of large and mid cap equities from a universe of over 20 Developed Market countries and over 20 Emerging Market countries; up to 30% of the portfolio may be invested in emerging markets
StrategyCombines three managers with complementary growth and value oriented investment processes
BenchmarkMSCI All Country World ex-U.S. Index
Asset ManagersCauseway Capital (Effective 2005)Principal Global (Effective 2007)WCM (Effective 2015)
Total Expense Ratio / Minimum Class A: 1.40% / No minimumClass B: 0.89% / $5M
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT International Equity Fund
Fund Performance
CUIT International Equity Fund A
CUIT International Equity Fund B
MSCI ACWI ex-U.S. Index
30%
20%
10%
0%3 MO 1 YR 3 YR 5 YR 10 YR
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT International Equity Fund A 10.10 26.10 11.42 6.59 6.38
CUIT International Equity Fund B 10.27 26.75 11.95 7.06 6.83
MSCI ACWI ex-U.S. Index 8.99 22.13 10.40 6.33 6.07
CALENDAR YEAR RETURN 2019 2018 2017 2016 2015
CUIT International Equity Fund A 26.10 (15.93) 30.47 2.35 (2.82)
CUIT International Equity Fund B 26.75 (15.53) 31.04 2.75 (2.45)
MSCI ACWI ex-U.S. Index 22.13 (13.78) 27.77 5.01 (3.81)
Source: BNY Mellon. Please see Important Information on page 2.
Source: eVestment
Source: FactSet
Source: FactSet
Source: FactSet
Risk Metrics (5yr)CHARACTERISTICS FUND BENCHMARK CHARACTERISTICS FUND BENCHMARK
Standard Deviation 12.4 12.5 Information Ratio 0.7 N/A
Tracking Error 2.6 0.0 Upside Capture 102.6 100.0
Sharpe Ratio 0.6 0.4 Downside Capture 92.6 100.0
Geographic DistributionFUND BENCHMARK
United Kingdom 14.6 10.9
France 9.4 7.6
Italy 2.7 1.6
Germany 9.4 5.7
Japan 7.9 16.3
USA* 8.4 0.0
Canada 5.0 6.7
Other Europe 17.3 16.4
Developed Asia 3.1 7.9
Emeg. Mkts Asia 17.5 20.4
Other Emg. Mkts 4.7 6.6
Market Sector Analysis %Communication
ServicesConsumer
DiscretionaryConsumer
Staples Energy Financials Health Care Industrials Information
Technology Materials Real Estate Utilities Cash
Fund 5.2 13.9 9.3 4.6 16.6 7.2 15.0 15.8 5.8 0.4 1.1 5.1Benchmark 6.7 11.8 9.4 6.5 21.4 8.9 12.0 9.3 7.4 3.2 3.4 0.0Active Weights -1.5 2.1 -0.1 -1.9 -4.8 -1.6 3.0 6.4 -1.6 -2.8 -2.3 5.1
Source: FactSet. *U.S. allocation includes ADRs and cash.
Total Fund Value $1,009.1 MMCUIT Intl Equity Fund Class A $98.9 MM
CUIT Intl Equity Fund Class B $537.8 MM
CUIT Intl Equity Fund Class C $223.0 MM
CUIT Intl Equity Fund in Magnus® $149.4 MM
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 30
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT International Equity FundAttribution 12-MONTHS 3-MONTHS
AVG. WEIGHT RELATIVE RETURN CONTRIBUTION AVG. WEIGHT RELATIVE RETURN CONTRIBUTION
Sector Fund Index SectorAllocation
Security Selection Total Fund Index Sector
AllocationSecurity Selection Total
Communication Services 6.47 6.97 0.08 -0.07 0.01 5.83 6.73 0.01 -0.08 -0.08
Consumer Discretionary 13.00 11.33 0.14 0.90 1.04 13.45 11.64 0.04 -0.27 -0.22
Consumer Staples 10.16 9.87 0.01 0.22 0.23 10.08 9.73 -0.03 -0.02 -0.05
Energy 5.19 6.97 0.14 -0.37 -0.22 4.80 6.59 0.04 -0.12 -0.08
Financials 18.00 21.75 0.19 1.64 1.83 17.70 21.52 0.03 1.00 1.03
Health Care 6.76 8.42 0.03 0.07 0.10 7.39 8.68 -0.05 -0.26 -0.30
Industrials 13.92 11.93 0.06 0.89 0.95 14.59 12.07 0.00 0.61 0.61
Information Technology 14.68 8.59 1.04 1.04 2.08 15.57 9.11 0.41 0.19 0.61
Materials 7.21 7.45 0.04 0.17 0.21 6.17 7.30 -0.02 -0.01 -0.03
Real Estate 0.67 3.29 0.13 0.04 0.17 0.46 3.20 0.05 0.05 0.10
Utilities 1.25 3.43 0.11 0.26 0.36 1.11 3.42 0.10 0.15 0.25
Cash 2.69 - -0.64 - -0.64 2.84 - -0.25 - -0.25
Total 100.00 100.00 1.32 4.81 6.13 100.00 100.00 0.34 1.25 1.59
Source: FactSet. All attribution is based on gross portfolio performance.
12-Month Review■ Sector allocation decisions and stock selection
were additive with positive stock selection asthe primary driver.
■ Sector positioning was positive across the boardwith an overweight to Information Technologythe most significant factor. Residual cash in thefund was the largest single detractor.
■ While stock selection in Energy detracted, stockselection was positive, particularly in Financialsand Information Technology.
3-Month Review■ Sector allocation and stock selection had
positive results.
■ An overweight to Information Technologywas beneficial, while other sector allocationdecisions had little impact.
■ Stock selection decisions within Financialsand Industrials were the primary drivers.
Current Positioning
■ We believe the Fund’s positioning is relativelystable quarter to quarter.
■ The Fund exhibited a modest growth tilt relativeto the benchmark index. The Fund’s P/E and P/B ratios are slightly higher, and its dividend yield is lower than the index.
■ The Fund currently has about 78% of its marketvalue invested in developed nation securities and22% in emerging markets.
■ Sector weightings currently include anoverweight in Information Technology and muchmore modest overages in ConsumerDiscretionary and Industrials. The mostsignificant underweight is to Financials.
Important InformationBenchmark Index: The Fund’s benchmark was changed to MSCI All Country World Index (ACWI) ex-U.S. effective June 1, 2015. For periods prior to June 1, 2015, the applicable benchmark was the Morgan Stanley Capital International Europe, Australia and the Far East Index (“EAFE”). Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative index represents unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but is not necessarily intended to parallel the risk or investment approach of your investments. The index does not incur taxes or expenses but is inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the index may be obtained from our provider or CBIS.
Total Estimated Expense Ratio for Class B reflects the partial waiver of the Investment Management Fee so total expenses do not exceed 99 bps. The securities identified and described do not represent all of the securities purchased, sold or recommended for investor accounts. The reader should not assume that an investment in the securities identified was or will be profitable. For a complete list of securities offered during the period, please contact CBIS.
CBIS offers pooled funds on behalf of a not-for-profit investment trust, the Catholic United Investment Trust (CUIT) Offering Memorandum, which contains further information, is available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Fund. Commingled Fund exclusively for tax-exempt Catholic institutions. All assets are invested in accordance with CBIS’ Catholic Responsible Investing Guidelines. Total expense ratio includes management fee and all other fees (accounting, custody and transfer agent). The Funds provide daily NAV and daily liquidity.
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 31
Objective Long-term capital appreciation
InvestmentsEquity securities in MSCI All Country World ex US Small-Cap Index except those screened by CBIS’ Catholic investment screens criteria
StrategyCombines two skilled and complementary active managers, designed for enhanced risk-adjusted returns
BenchmarkMSCI All Country World ex US Small-Cap Index
Asset ManagersLazard Asset Management (Effective 2019)Global Alpha (Effective 2019)
Total Expense Ratio / Minimum Class B: 1.15% / $1M
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT International Small Cap Equity Fund
All attribution is based on gross portfolio performance.
Portfolio AnalysisSTATISTICS FUND BENCHMARK
Weighted Median Market Cap $2.1B $2.0B
Price/Book 1.7x 1.5x
Price/Earnings 14.4x 15.5x
Return on Equity 15.8% 11.7%
Dividend Yield 2.4% 2.6%
5-year Earnings Growth 17.5% 12.2%
Beta 1.0 1.0
Active Share N/A N/A
10 Largest Holdings 13.0 7.4
# of Equity Securities 451 4,210
Geographic DistributionFUND BENCHMARK CHARACTERISTICS FUND BENCHMARK
United Kingdom 15.3 13.6 Canada 3.9 6.9
France 6.4 2.5 Other Europe 16.3 19.2
Italy 5.0 2.5 Developed Asia 9.7 8.6
Germany 4.4 4.5 Emeg. Mkts Asia 6.8 14.7
Japan 28.2 22.0 Other Emg. Mkts 2.8 5.4
USA* 1.2 0.0
Top Ten HoldingsNAME %
Kerry Logistics Network Ltd. 1.5
Internet Initiative Japan Inc. 1.4
Autogrill S.p.A. 1.4
IWG Plc 1.4
Savills plc 1.3
CVS Group plc 1.2
LISI SA 1.2
L'Occitane International S.A. 1.2
Rothschild & Co. SCA 1.2
Melia Hotels International, S.A. 1.2
Market Sector Analysis %Communication
ServicesConsumer
DiscretionaryConsumer
Staples Energy Financials Health Care Industrials Information
Technology Materials Real Estate Utilities Cash
Fund 3.5 11.5 7.6 2.1 10.1 6.8 22.5 10.4 7.8 11.7 2.7 3.3Benchmark 4.3 12.5 5.9 3.3 10.4 7.3 19.7 11.1 9.9 12.3 3.2 0.0Active Weights -0.8 -1.0 1.7 -1.2 -0.4 -0.5 2.8 -0.7 -2.2 -0.6 -0.5 3.3
*U.S. allocation includes ADRs and cash.Source: FactSet
Total Fund Value $43.4 MM
CUIT Intl Small Cap Equity Fund B $5.4 MM
CUIT Intl Small Cap Equity Fund in Magnus® $38.0 MM
Important InformationBenchmark Index: As of December 30, 2019, the benchmark for the International Small Cap Equity Fund is the MSCI ACWI ex-US Small Cap Index, which captures small cap representation across 22 of 23 Developed Markets (DM) countries (excluding the US) and 26 Emerging Markets (EM) countries. The comparative index represents unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but is not necessarily intended to parallel the risk or investment approach of your investments. The index does not incur taxes or expenses but is inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the index may be obtained from our provider or CBIS.
The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in the securities identified was or will be profitable. For a complete list of securities offered during the period, please contact CBIS.
CBIS offers pooled funds on behalf of a not-for-profit investment trust, the Catholic United Investment Trust (CUIT) Offering Memorandum, which contains further information, is available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Fund. Commingled Fund exclusively for tax-exempt Catholic institutions. All assets are invested in accordance with CBIS’ Catholic Responsible Investing Guidelines. Total expense ratio includes management fee and all other fees (accounting, custody and transfer agent). The Funds provide daily NAV and daily liquidity.
Source: FactSet Source: FactSet
Source: FactSet
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 32
Portfolio Analysis – EquitySTATISTICS FUND BENCHMARK
Weighted Median Market Cap $59.0B $66.3B
Price/Book 2.7x 2.6x
Price/Earnings 20.4x 20.3x
Return on Equity 22.3% 20.2%
Dividend Yield 1.8% 2.1%
5-year Earnings Growth 14.1% 13.1%
Beta 1.1 0.0
Active Share 39.7 N/A
# of Securities 1,531 5,402
Fund Size $837.8 MM
Portfolio Analysis – Fixed IncomeSTATISTICS FUND BENCHMARK
Average Maturity (years) 5.0 7.9
Effective Duration (years) 3.7 5.8
Average Quality A+ AA
Yield-to-Maturity 2.5% 2.3%
Current Yield 3.3% 2.6%
# of Securities 1,083 10,982
Credit QualityFUND BENCHMARK
AAA 50.0 72.0
AA 5.9 3.2
A 17.0 10.5
BBB 21.2 13.1
Below BBB 4.2 1.2
Merger/Arbitrage 2.4 0.0
Cash 1.6 0.0
Effective DurationFUND BENCHMARK
<1 Year 17.8 1.2
1-3 Years 38.7 33.0
3-5 Years 24.6 31.2
5-7 Years 6.1 11.2
7-10 Years 6.5 6.7
10-20 Years 5.5 15.8
>20 Years 0.9 0.9
Fund Performance
CUIT Magnus® 60/40 Alpha Plus Class A
CUIT Magnus® 60/40 Alpha Plus Class B
40% BBAgg/45% R3000/ 15% MSCI ACWI-ex.U.S.
25%20%15%10%5%0%
3 MO 1 YR 3 YR 5 YR 10 YR
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Magnus® 60/40 Alpha Plus Class A 5.62 19.25 * * *
CUIT Magnus® 60/40 Alpha Plus Class B 5.60 19.44 * * *
40% BBAgg / 45% R3000 / 15% MSCI ACWI-ex.U.S. 5.47 20.63 * * *
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Magnus® 60/40 Alpha Plus Fund
Objective The 60/40 Alpha Plus Fund’s investmentobjective is to achieve current incomeand long-term capital appreciation.
InvestmentsThe 60/40 Alpha Plus Fund’s risk-reducingholdings are a diversified mix ofshort-, intermediate-, and long-termU.S. government, U.S. agency, andinvestment-grade U.S. corporate bonds;mortgage-backed and asset-backedsecurities; and government, agency,corporate, and securitized investment-gradeforeign bonds issued in currenciesother than the U.S. dollar (which may behedged to minimize foreign currencyexposure). The 60/40 Alpha Plus Fund’sreturn-seeking holdings are a diversifiedmix of U.S. and foreign small-, mid-, andlarge-capitalization equity securities.
BenchmarkThe blended benchmark for the 60/40Alpha Plus Fund is comprised of 40%Bloomberg Barclays Aggregate / 45%Russell 3000 / 15% MSCI ACWI ex-US.
CUIT Fund InvestmentsRisk-Reducing: CUIT Intermediate Diversified Bond (20%) CUIT Opportunistic Bond (10%) CUIT Short Bond (10%)
Return-Seeking: CUIT Small Cap Equity Index (6.00%) CUIT International Equity (12.00%) CUIT Growth Equity (12.00%) CUIT Core Equity Index (15.00%) CUIT Value Equity (12.00%) CUIT International Small Cap Equity* (3.00%)
*The CUIT International Small Cap Equity Fund was allocated to Magnus® in December 2019.
Source: BNY Mellon, SS&C. Please see Important Disclosures on Page 2.
Source: FactSet
Source: FactSet
Source: FactSet Source: FactSet
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 33
Important InformationImportant Information Benchmark Index: The Fund’s blended benchmark is 40% Bloomberg Barclays Aggregate / 45% Russell 3000 / 15% MSCI ACWI ex-US. Characteristics presented for the 60/40 Alpha Fund were also compiled using data from Barclays Capital U.S. 1-3 Year Treasury Bond Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative indices represent unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for measuring relative performance but are not necessarily intended to parallel the risk or investment approach of your investments. The indices do not incur taxes or expenses but are inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the indices may be obtained from our provider or CBIS. Bloomberg Index Services Limited: BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. CBIS offers pooled funds on behalf of a not-for-profit investment trust, the Catholic United Investment Trust (CUIT), a commingled fund exclusively for tax-exempt Catholic institutions. The CUIT Fund SeriesOffering Memorandum and CUIT Magnus® Series Offering Memorandum, which contains further information, is available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Fund. Shares in the CUIT Fund Series and CUIT Magnus® Series are offered exclusively through CBIS Financial Services, Inc., a broker-dealer subsidiary of CBIS. All assets are invested in accordance with CBIS’ Catholic Responsible Investing Guidelines. Total expense ratio includes management fee and all other fees (accounting, custody and transfer agent). The Funds provide daily NAV and daily liquidity.
Asset Allocation Effect [AAE]: Quantifies the performance effect of differences in actual asset allocation weights of the Series relative to the target weights of the blended benchmark. As mentioned previously, the magnitude of cashflows and market volatility will have an impact on results.
Strategy Selection Effect [SSE]: Quantifies the value-add of the underlying strategy benchmarks relative to the Risk-Reducing and Return-Seeking broad benchmarks.
Manager Selection Effect [MSE]: Quantifies how CBIS’ manager selection and pairing combination within each sub-strategy has added value relative to the corresponding sub-strategy benchmark.
12-Month Performance
■ AAE was negative for the year
■ SSE was negative for the year due to anoverweight allocation to the small cap strategyand small cap stocks’ underperformance relativeto large cap stocks. Allocation to Value alsodetracted as value stocks underperformed duringthe period; this was offset by the allocationto Growth as growth stock outperformed. Inaddition, allocation to SBF and OBF detractedfrom results as longer duration outperformed
■ MSE was positive for the year, driven primarily byInternational and Core within Return-Seeking, as well as outperformance within Risk-Reducing. This more than offset underperformance within the Value and Growth components.
3-Month Performance■ AAE was positive for the quarter.
■ SSE was slightly negative for the quarter. Thepositive effect within Risk-Reducing was offsetby negative effect within Return-Seeking US,particularly with Value and Small Cap as bothvalue and small cap stocks underperformed.
■ MSE was positive for the quarter as mostmanagers (with the exception of thosewithin Growth) outperformed their respectivebenchmarks, particularly within theInternational Fund.
For more details on positioning, see current positioning for the underlying CUIT Funds.
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Magnus® 60/40 Alpha Plus Fund
Source: FactSet
Market Sector Analysis % - Return-Seeking
Communication Services
Consumer Discretionary
Consumer Staples Energy Financials Health
Care Industrials InformationTechnology Materials Real
Estate Utilities Cash
Fund 8.8 11.2 6.9 4.3 15.1 10.6 11.0 21.4 3.8 2.6 2.3 1.9Benchmark 8.7 10.5 7.2 4.7 15.5 12.8 10.4 19.2 4.0 3.8 3.3 0.0Active Weights 0.1 0.7 -0.3 -0.3 -0.3 -2.2 0.5 2.2 -0.1 -1.2 -1.0 1.9
Allocations% - Risk-Reducing
Treasuries Agencies Industrials Finance Utilities Supra- national Sovereign MBS CMO CMBS ABS Municipals Covered
BondsMerger/Arbitrage Cash
Fund 22.2 2.5 17.2 15.3 1.5 0.0 0.0 10.6 1.0 12.3 11.7 1.7 0.0 2.4 1.6Benchmark 39.5 2.5 15.5 7.9 1.9 1.3 1.0 27.0 0.0 2.0 0.5 0.9 0.0 0.0 0.0Active Weights -17.3 0.0 1.7 7.4 -0.3 -1.3 -1.0 -16.3 1.0 10.3 11.2 0.8 0.0 2.4 1.6
Source: FactSet
All attribution is based on gross portfolio performance.
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 34
Portfolio Analysis – EquitySTATISTICS FUND BENCHMARK
Weighted Median Market Cap $52.0B $66.3B
Price/Book 2.6x 2.6x
Price/Earnings 20.5x 20.3x
Return on Equity 21.3% 20.2%
Dividend Yield 1.8% 2.1%
5-year Earnings Growth 13.5% 13.1%
Beta 1.1 0.0
Active Share 40.1 N/A
# of Securities 1,531 5,402
Fund Size $197.5 MM
Portfolio Analysis – Fixed IncomeSTATISTICS FUND BENCHMARK
Average Maturity (years) 5.0 7.9
Effective Duration (years) 3.7 5.8
Average Quality A+ AA
Yield-to-Maturity 2.5% 2.3%
Current Yield 3.3% 2.6%
# of Securities 1,083 10,982
Credit QualityFUND BENCHMARK
AAA 50.0 72.0
AA 5.9 3.2
A 17.0 10.5
BBB 21.2 13.1
Below BBB 4.2 1.2
Merger/Arbitrage 2.4 0.0
Cash 1.6 0.0
Effective DurationFUND BENCHMARK
<1 Year 17.8 1.2
1-3 Years 38.7 33.0
3-5 Years 24.6 31.2
5-7 Years 6.1 11.2
7-10 Years 6.5 6.7
10-20 Years 5.5 15.8
>20 Years 0.9 0.9
Fund Performance
CUIT Magnus® 60/40 Beta Plus Class A
CUIT Magnus® 60/40 Beta Plus Class B
40% BBAgg/45% R3000/ 15% MSCI ACWI-ex.U.S.
25%20%15%10%5%0%
3 MO 1 YR 3 YR 5 YR 10 YR
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Magnus® 60/40 Beta Plus Class A 5.65 20.26 * * *
CUIT Magnus® 60/40 Beta Plus Class B 5.77 20.58 * * *
40% BBAgg/45% R3000/15% MSCI ACWI-ex.U.S. 5.47 20.63 * * *
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Magnus® 60/40 Beta Plus Fund
Objective The 60/40 Beta Plus Fund’s investmentobjective is to achieve current incomeand long-term capital appreciation.
InvestmentsThe 60/40 Beta Plus Fund’s risk-reducingholdings are a diversified mix ofshort-, intermediate-, and long-termU.S. government, U.S. agency, andinvestment-grade U.S. corporate bonds;mortgage-backed and asset-backedsecurities; and government, agency,corporate, and securitized investment-gradeforeign bonds issued in currenciesother than the U.S. dollar (which may behedged to minimize foreign currencyexposure). The 60/40 Beta Plus Fund’sreturn-seeking holdings are a diversifiedmix of U.S. and foreign small-, mid-, andlarge-capitalization equity securities.
BenchmarkThe blended benchmark for the 60/40Beta Plus Fund is comprised of 40%Bloomberg Barclays Aggregate / 45%Russell 3000 / 15% MSCI ACWI ex-US.
CUIT Fund InvestmentsRisk-Reducing: CUIT Intermediate Diversified Bond (20%) CUIT Opportunistic Bond (10%) CUIT Short Bond (10%)
Return-Seeking: CUIT Small Cap Equity Index (6.00%) CUIT International Equity (12.00%) CUIT Core Equity Index (39.00%) CUIT International Small Cap Equity* (3.00%)
*The CUIT International Small Cap Equity Fund was allocated to Magnus® in December 2019.
Source: BNY Mellon, SS&C. Please see Important Disclosures on Page 2.
Source: FactSet
Source: FactSet Source: FactSet
Source: FactSet
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 35
Important InformationImportant Information Benchmark Index: The Fund’s blended benchmark is 40% Bloomberg Barclays Aggregate / 45% Russell 3000 / 15% MSCI ACWI ex-US. Characteristics presented for the 60/40 Beta Fund were also compiled using data from Barclays Capital U.S. 1-3 Year Treasury Bond Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative indices represent unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for measuring relative performance but are not necessarily intended to parallel the risk or investment approach of your investments. The indices do not incur taxes or expenses but are inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the indices may be obtained from our provider or CBIS. Bloomberg Index Services Limited: BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. CBIS offers pooled funds on behalf of a not-for-profit investment trust, the Catholic United Investment Trust (CUIT), a commingled fund exclusively for tax-exempt Catholic institutions. The CUIT Fund Series Offering Memorandum and CUIT Magnus® Series Offering Memorandum, which contains further information, is available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Fund. Shares in the CUIT Fund Series and CUIT Magnus® Series are offered exclusively through CBIS Financial Services, Inc., a broker-dealer subsidiary of CBIS. All assets are invested in accordance with CBIS’ Catholic Responsible Investing Guidelines. Total expense ratio includes management fee and all other fees (accounting, custody and transfer agent). The Funds provide daily NAV and daily liquidity.
Asset Allocation Effect [AAE]: Quantifies the performance effect of differences in actual asset allocation weights of the Series relative to the target weights of the blended benchmark. As mentioned previously, the magnitude of cashflows and market volatility will have an impact on results.
Strategy Selection Effect [SSE]: Quantifies the value-add of the underlying strategy benchmarks relative to the Risk-Reducing and Return-Seeking broad benchmarks.
Manager Selection Effect [MSE]: Quantifies how CBIS’ manager selection and pairing combination within each sub-strategy has added value relative to the corresponding sub-strategy benchmark.
12-Month Performance■ AAE was positive for the year.
■ SSE was negative for the year due primarily toan overweight allocation to Small Cap and smallcap stocks’ underperformance relative to largecap stocks. In addition, allocation to SBF andOBF detracted from results as longer durationoutperformed.
■ MSE was positive for the year, driven primarily byInternational and Core within Return-Seeking, aswell as outperformance within Risk-Reducing.
3-Month Performance■ AAE was positive for the quarter.
■ SSE was slightly negative for the quarter. Thepositive effect within Risk-Reducing was offsetby negative effect within Return-Seeking US,particularly with Small Cap as small cap stocksunderperformed large cap stocks.
■ MSE was negative for the quarter driven primarilyby outperformance within International andRisk-Reducing.
For more details on positioning, see current positioning for the underlying CUIT Funds.
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Magnus® 60/40 Beta Plus FundMarket Sector Analysis % - Return-Seeking
Communication Services
Consumer Discretionary
Consumer Staples Energy Financials Health
Care Industrials InformationTechnology Materials Real
Estate Utilities Cash
Fund 8.0 11.5 7.1 4.4 15.0 10.8 11.6 20.1 4.1 3.2 2.6 1.7Benchmark 8.7 10.5 7.2 4.7 15.5 12.8 10.4 19.2 4.0 3.8 3.3 0.0Active Weights -0.7 1.0 -0.1 -0.3 -0.5 -2.0 1.2 0.9 0.1 -0.6 -0.7 1.7
Allocations% - Risk-Reducing
Treasuries Agencies Industrials Finance Utilities Supra- national Sovereign MBS CMO CMBS ABS Municipals Covered
BondsMerger/Arbitrage Cash
Fund 22.2 2.5 17.2 15.3 1.5 0.0 0.0 10.6 1.0 12.3 11.7 1.7 0.0 2.4 1.6Benchmark 39.5 2.5 15.5 7.9 1.9 1.3 1.0 27.0 0.0 2.0 0.5 0.9 0.0 0.0 0.0Active Weights -17.3 0.0 1.7 7.4 -0.3 -1.3 -1.0 -16.3 1.0 10.3 11.2 0.8 0.0 2.4 1.6
Source: FactSet
Source: FactSet
All attribution is based on gross portfolio performance.
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 36
Portfolio Analysis – EquitySTATISTICS FUND BENCHMARK
Weighted Median Market Cap $49.5B $66.3B
Price/Book 2.6x 2.6x
Price/Earnings 20.2x 20.3x
Return on Equity 21.1% 20.2%
Dividend Yield 1.8% 2.1%
5-year Earnings Growth 13.6% 13.1%
Beta 1.1 0.0
Active Share 42.7 N/A
# of Securities 1,531 5,402
Fund Size $46.5 MM
Credit QualityFUND BENCHMARK
AAA 50.0 72.0
AA 5.9 3.2
A 17.0 10.5
BBB 21.2 13.1
Below BBB 4.2 1.2
Merger/Arbitrage 2.4 0.0
Cash 1.6 0.0
Effective DurationFUND BENCHMARK
<1 Year 17.8 1.2
1-3 Years 38.7 33.0
3-5 Years 24.6 31.2
5-7 Years 6.1 11.2
7-10 Years 6.5 6.7
10-20 Years 5.5 15.8
>20 Years 0.9 0.9
Fund Performance
CUIT Magnus® 45/55 Fund
55% BBAgg/33.75% R3000/ 11.25% MSCI ACWI-Ex.U.S.
20%15%10%5%0%
3 MO 1 YR 3 YR 5 YR 10 YR
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Magnus® 45/55 Fund 4.29 16.32 * * *
55% BBAgg/33.75% R3000/11.25% MSCI ACWI-Ex.U.S. 4.13 17.60 * * *
Source: BNY Mellon, SS&C. Please see Important Disclosures on Page 2.
Source: FactSet
Source: FactSet
Source: FactSet Source: FactSet
Portfolio Analysis – Fixed IncomeSTATISTICS FUND BENCHMARK
Average Maturity (years) 5.0 7.9
Effective Duration (years) 3.7 5.8
Average Quality A+ AA
Yield-to-Maturity 2.5% 2.3%
Current Yield 3.3% 2.6%
# of Securities 1,083 10,982
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Magnus® 45/55 Fund
Objective The 45/55 Fund’s investment objectiveis to achieve current income and long-termcapital appreciation.
InvestmentsThe 45/55 Fund’s risk-reducingholdings are a diversified mix ofshort-, intermediate-, and long-termU.S. government, U.S. agency, andinvestment-grade U.S. corporate bonds;mortgage-backed and asset-backedsecurities; and government, agency,corporate, and securitized investment-gradeforeign bonds issued in currenciesother than the U.S. dollar (which may behedged to minimize foreign currencyexposure). The 45/55 Fund’s return-seekingholdings are a diversified mixof U.S. and foreign small-, mid-, andlarge-capitalization equity securities.
BenchmarkThe blended benchmark for the 45/55Fund is comprised of 55% BloombergBarclays Aggregate / 33.75% Russell3000 / 11.25% MSCI ACWI ex-US.
CUIT Fund InvestmentsRisk-Reducing: CUIT Intermediate Diversified Bond (27.5%) CUIT Opportunistic Bond (13.75% CUIT Short Bond Fund (13.75%)
Return-Seeking: CUIT Small Cap Equity Index (4.50%) CUIT International Equity (9.00%) CUIT Growth Equity (3.50%) CUIT Core Equity Index (22.25%) CUIT Value Equity (3.50%) CUIT International Small Cap Equity* (2.25%)
*The CUIT International Small Cap Equity Fund was allocated to Magnus® in December 2019.
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 37
Important InformationImportant Information Benchmark Index: The Fund’s blended benchmark is comprised of 55% Bloomberg Barclays Aggregate / 33.75% Russell 3000 / 11.25% MSCI ACWI ex-US.Characteristics presented for the 45/55 Fund were also compiled using data from Barclays Capital U.S. 1-3 Year Treasury Bond Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative indices represent unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for measuring relative performance but are not necessarily intended to parallel the risk or investment approach of your investments. The indices do not incur taxes or expenses but are inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the indices may be obtained from our provider or CBIS. Bloomberg Index Services Limited: BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. CBIS manages pooled funds on behalf of a not-for-profit investment trust, the Catholic United Investment Trust (CUIT), a commingled fund exclusively for tax-exempt Catholic institutions. The CUIT Fund Series Offering Memorandum and CUIT Magnus® Series Offering Memorandum, which contains further information, is available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Fund. Shares in the CUIT Fund Series and CUIT Magnus® Series are offered exclusively through CBIS Financial Services, Inc., a broker-dealer subsidiary of CBIS. All assets are invested in accordance with CBIS’ Catholic Responsible Investing Guidelines. Total expense ratio includes management fee and all other fees (accounting, custody and transfer agent). The Funds provide daily NAV and daily liquidity.
Asset Allocation Effect [AAE]: Quantifies the performance effect of differences in actual asset allocation weights of the Series relative to the target weights of the blended benchmark. As mentioned previously, the magnitude of cashflows and market volatility will have an impact on results.
Strategy Selection Effect [SSE]: Quantifies the value-add of the underlying strategy benchmarks relative to the Risk-Reducing and Return-Seeking broad benchmarks.
Manager Selection Effect [MSE]: Quantifies how CBIS’ manager selection and pairing combination within each sub-strategy has added value relative to the corresponding sub-strategy benchmark.
12-Month Performance
■ AAE was negative for the year
■ SSE was negative for the year due to an overweight allocation to Small Cap and small cap stocks’ underperformance relative to large cap stocks. In addition, allocation to SBF and OBF detracted from results as longer duration outperformed.
■ MSE was negative for the year, driven primarilyby selection in International and Core within Return-Seeking, as well as outperformance within Risk-Reducing.
3-Month Performance
■ AAE was slightly positive for the quarter.
■ SSE was slightly positive for the quarter. Thepositive effect within Risk-Reducing was offset by negative effect within Return-Seeking US, particularly with Value and Small Cap as both value and small cap stocks underperformed.
■ MSE was positive for the quarter as mostmanagers matched or outperformed theirrespective benchmarks, particularly withinthe International Fund.
For more details on positioning, see current positioning for the underlying CUIT Funds.
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Magnus® 45/55 Fund
Source: FactSet
Market Sector Analysis % - Return-Seeking
Communication Services
Consumer Discretionary
Consumer Staples Energy Financials Health
Care Industrials InformationTechnology Materials Real
Estate Utilities Cash
Fund 8.1 11.5 6.7 4.3 15.4 10.6 11.6 20.6 4.0 3.0 2.3 1.9Benchmark 8.7 10.5 7.2 4.7 15.5 12.8 10.4 19.2 4.0 3.8 3.3 0.0Active Weights -0.6 1.0 -0.5 -0.3 -0.1 -2.2 1.2 1.5 0.0 -0.8 -1.0 1.9
Allocations% - Risk-Reducing
Treasuries Agencies Industrials Finance Utilities Supra- national Sovereign MBS CMO CMBS ABS Municipals Covered
BondsMerger/Arbitrage Cash
Fund 22.2 2.5 17.2 15.3 1.5 0.0 0.0 10.6 1.0 12.3 11.7 1.7 0.0 2.4 1.6Benchmark 39.5 2.5 15.5 7.9 1.9 1.3 1.0 27.0 0.0 2.0 0.5 0.9 0.0 0.0 0.0Active Weights -17.3 0.0 1.7 7.4 -0.3 -1.3 -1.0 -16.3 1.0 10.3 11.2 0.8 0.0 2.4 1.6
Source: FactSet
All attribution is based on gross portfolio performance.
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 38
Fund Performance
CUIT Magnus® 75/25 Fund Class A
CUIT Magnus® 75/25 Fund Class B
25% BBAgg/56.25% R3000/ 18.75% MSCI ACWI-Ex.U.S.
25%20%15%10%5%0%
3 MO 1 YR 3 YR 5 YR 10 YR
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Magnus® 75/25 Fund Class A 6.69 22.41 * * *
CUIT Magnus® 75/25 Fund Class B 6.68 * * * *
25% BBAgg/56.25% R3000/18.75% MSCI ACWI-Ex.U.S. 6.81 23.69 * * *
Source: BNY Mellon, SS&C. Please see Important Disclosures on Page 2.
Portfolio Analysis – EquitySTATISTICS FUND BENCHMARK
Weighted Median Market Cap $48.8B $66.3B
Price/Book 2.6x 2.6x
Price/Earnings 20.1x 20.3x
Return on Equity 21.1% 20.2%
Dividend Yield 1.8% 2.1%
5-year Earnings Growth 13.7% 13.1%
Beta 1.1 0.0
Active Share 44.0 N/A
# of Securities 1,531 5,402
Fund Size $159.1 MM
Portfolio Analysis – Fixed IncomeSTATISTICS FUND BENCHMARK
Average Maturity (years) 5.0 7.9
Effective Duration (years) 3.7 5.8
Average Quality A+ AA
Yield-to-Maturity 2.5% 2.3%
Current Yield 3.3% 2.6%
# of Securities 1,083 10,982
Credit QualityFUND BENCHMARK
AAA 50.0 72.0
AA 5.9 3.2
A 17.0 10.5
BBB 21.2 13.1
Below BBB 4.2 1.2
Merger/Arbitrage 2.4 0.0
Cash 1.6 0.0
Effective DurationFUND BENCHMARK
<1 Year 17.8 1.2
1-3 Years 38.7 33.0
3-5 Years 24.6 31.2
5-7 Years 6.1 11.2
7-10 Years 6.5 6.7
10-20 Years 5.5 15.8
>20 Years 0.9 0.9
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Magnus® 75/25 Fund
Objective The 75/25 Fund’s investment objective is to achieve current income and long-term capital appreciation.
InvestmentsThe 75/25 Fund’s risk-reducing holdings are a diversified mix of short-, intermediate-, and long-term U.S. government, U.S. agency, and investment-grade U.S. corporate bonds; mortgage-backed and asset-backed securities; and government, agency, corporate, and securitized investment-grade foreign bonds issued in currencies other than the U.S. dollar (which may be hedged to minimize foreign currency exposure). The 75/25 Fund’s return-seeking holdings are a diversified mix of U.S. and foreign small-, mid-, and large-capitalization equity securities.
BenchmarkThe blended benchmark for the 75/25 Fund is comprised of 25% Bloomberg Barclays Aggregate / 56.25% Russell 3000 / 18.75% MSCI ACWI ex-US.
CUIT Fund InvestmentsRisk-Reducing: CUIT Intermediate Diversified Bond (12.5%) CUIT Opportunistic Bond (6.25%) CUIT Short Bond (6.25%)
Return-Seeking: CUIT Small Cap Equity Index (7.50%) CUIT International Equity (15.00%) CUIT Growth Equity (7.50%) CUIT Core Equity Index (33.75%) CUIT Value Equity (7.50%) CUIT International Small Cap Equity* (3.75%)
*The CUIT International Small Cap Equity Fund was allocated to Magnus® in December 2019.
Source: FactSet
Source: FactSet
Source: FactSet Source: FactSet
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 39
Important InformationImportant Information Benchmark Index: The Fund’s blended benchmark is comprised of 25% Bloomberg Barclays Aggregate / 56.25% Russell 3000 / 18.75% MSCI ACWI ex-US. Characteristics presented for the 75/25 Fund were also compiled using data from Barclays Capital U.S. 1-3 Year Treasury Bond Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative indices represent unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for measuring relative performance but are not necessarily intended to parallel the risk or investment approach of your investments. The indices do not incur taxes or expenses but are inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the indices may be obtained from our provider or CBIS. Bloomberg Index Services Limited: BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. CBIS manages pooled funds on behalf of a not-for-profit investment trust, the Catholic United Investment Trust (CUIT) , a commingled fund exclusively for tax-exempt Catholic institutions. The CUIT Fund Series Offering Memorandum and CUIT Magnus® Series Offering Memorandum, which contains further information, is available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Fund. Shares in the CUIT Fund Series and CUIT Magnus® Series are offered exclusively through CBIS Financial Services, Inc., a broker-dealer subsidiary of CBIS. All assets are invested in accordance with CBIS’ Catholic Responsible Investing Guidelines. Total expense ratio includes management fee and all other fees (accounting, custody and transfer agent). The Funds provide daily NAV and daily liquidity.
Class B performance is only available for the three month period; one year performance results are not available.
Asset Allocation Effect [AAE]: Quantifies the performance effect of differences in actual asset allocation weights of the Series relative to the target weights of the blended benchmark. As mentioned previously, the magnitude of cashflows and market volatility will have an impact on results.
Strategy Selection Effect [SSE]: Quantifies the value-add of the underlying strategy benchmarks relative to the Risk-Reducing and Return-Seeking broad benchmarks.
Manager Selection Effect [MSE]: Quantifies how CBIS’ manager selection and pairing combination within each sub-strategy has added value relative to the corresponding sub-strategy benchmark.
12-Month Performance■ AAE was negative for the year due to frictional
cash held in the portfolio.
■ SSE was negative for the year due to anoverweight to Small Cap and small cap stocks’underperformance relative to large cap stocks.Allocation to Value also detracted as value stocksunderperformed during the period; this wasoffset by the allocation to Growth as growthstock outperformed. In addition, allocation toSBF and OBF detracted from results as longerduration outperformed.
■ MSE was positive for the year, driven primarilyby International and Core within Return-Seeking,as well as outperformance within Risk-Reducing.This more than offset underperformance withinthe Value and Growth components.
3-Month Performance
■ AAE was negative for the quarter.
■ SSE was slightly negative for the quarter. Thepositive strategy selection effect within Risk-Reducing was offset by negative strategy effect within Return-Seeking US, particularly with Value and Small Cap as both value and small cap stocks underperformed.
■ MSE was positive for the quarter driven primarilyby outperformance by the managers within International and Risk-Reducing.
For more details on positioning, see current positioning for the underlying CUIT Funds.
CatholicResponsibleInvestments
Q4 2019 FUND FACTS
CUIT Magnus® 75/25 FundMarket Sector Analysis % - Return-Seeking
Communication Services
Consumer Discretionary
Consumer Staples Energy Financials Health
Care Industrials InformationTechnology Materials Real
Estate Utilities Cash
Fund 8.2 11.5 6.6 4.3 15.5 10.6 11.6 20.8 3.9 2.9 2.2 1.9Benchmark 8.7 10.5 7.2 4.7 15.5 12.8 10.4 19.2 4.0 3.8 3.3 0.0Active Weights -0.6 1.0 -0.6 -0.4 0.0 -2.2 1.2 1.6 0.0 -0.9 -1.1 1.9
Allocations% - Risk-Reducing
Treasuries Agencies Industrials Finance Utilities Supra- national Sovereign MBS CMO CMBS ABS Municipals Covered
BondsMerger/Arbitrage Cash
Fund 22.2 2.5 17.2 15.3 1.5 0.0 0.0 10.6 1.0 12.3 11.7 1.7 0.0 2.4 1.6Benchmark 39.5 2.5 15.5 7.9 1.9 1.3 1.0 27.0 0.0 2.0 0.5 0.9 0.0 0.0 0.0Active Weights -17.3 0.0 1.7 7.4 -0.3 -1.3 -1.0 -16.3 1.0 10.3 11.2 0.8 0.0 2.4 1.6
Source: FactSet
Source: FactSet
All attribution is based on gross portfolio performance.
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 40
Christian Brothers Investment Services, Inc. � [email protected] PAGE 41
SM
� CBIS pioneered Catholic Responsible InvestmentsSM
and has more than 30 years of experience applying Catholic ethicaland social teaching to the investing process.
� While socially responsible investing is oftenequated with stock screens, a truly effective Catholic ResponsibleInvestmentsSM program requires that we also act as responsibleowners of companies to bring about a more just society. Ourapproach to Catholic socially responsible investing emphasizesdirect engagement with companies to help improve their policiesand practices.
� Catholic Responsible InvestmentsSM enables Catholic institutionsto align their investments with their beliefs and effect realchange in corporate activities with respect to human rights, theenvironment, and corporate governance.
�
encouraging strong corporate environmental, social andgovernance policies, we are helping support long-termperformance and the potential growth of shareholder value.
TEL: 877-550-2247 EMAIL: [email protected]
PO Box 9683 Providence, RI 02940-9683
U.S. TEL: 800-321-7194 U.S. FAX: 844-261-6489
NON-U.S. TEL: 508-871-9942 NON-U.S. FAX: 508-599-4183
Via Aurelia, 476 CP 9099 00165 ROMA-ITALIA
TEL: (39) 06 66 01 72 18 FAX: (39) 06 663 88 21
CHICAGO, IL 125 South Wacker Drive, Suite 2400 Chicago, IL 60606
TEL: 877-550-2247 312-803-6440
FAX: 855-634-5716
NEW YORK, NY 777 Third Avenue, 29th Floor, New York NY 10017-1401
TEL: 877-550-2247 212-490-0800
FAX: 855-634-5716
SAN FRANCISCO, CA One Embarcadero Center, Suite 500 San Francisco, CA 94111
TEL: 877-550-2247 FAX:
855-634-5716
CBIS REGIONAL OFFICES
CBIS REGIONAL TEAMS
TO LEARN MORE ABOUT CBIS CBIS GLOBAL ROME SERVICE CENTRECBIS ACCOUNT SERVICES
CENTRAL
Eric A. Bieniasz, CFA Managing Director – Relationship Management DIRECT: (312) 803-4722 EMAIL: [email protected]
James Mohan, CFA CIPM Managing Director – Investment Concierge DIRECT: (312) 803-4710 EMAIL: [email protected]
EAST
Jelena Milinkovic, CFA Managing Director – Investment Concierge DIRECT: (212) 503-1970 EMAIL: [email protected]
Robert P. Stelben Managing Director – US Consultant Relations Practice Leader DIRECT: (212) 503-1912 EMAIL: [email protected]
WEST
David A. Schwarzenberger, CFA Managing Director – Relationship Management DIRECT: (415) 723-6901 EMAIL: [email protected]
Elizabeth J. Vella Director – Investment Concierge DIRECT: (312) 803-4735 EMAIL: [email protected]
Investment Portfolio Review 4Q 2019
Christian Brothers Investment Services, Inc. ■ [email protected] PAGE 42
Important Disclosures
+ The CUIT Money Market Fund changed its investment approach from overnight repurchase agreements, to actively managed effective 8/1/01. ± Effective April 1, 2017, the benchmark for the CUIT Money Market Fund was changed to the Bloomberg Barclays U.S. Short Treasury Bills (1-3 Month) Index. For periods prior to April 1, 2017, the applicable benchmark was the Merrill Lynch 91-Day Treasury Bill Index. ** Effective July 1, 2016, the benchmark for the CUIT Short Bond Fund (SBF) was changed to the Bloomberg Barclays 1-3 Year Treasury Index. For periods prior to July 1, 2016, the applicable benchmarks were: ML 1-3 Yr Treasury Index effective 7/1/01; ML 1-5 Yr G/C Index effective 4/1/98; 50% LB Intermediate Government /50% LB 1-3 Yr Government effective 5/1/96; LB 1-3 Yr Government in prior periods. The benchmark performance shown for SBF in this presentation reflects the linked performance of these benchmarks for each applicable period. **** Effective June 1, 2000, the benchmark was changed to the Russell 1000 Growth Index; prior to this date, historical returns reflect Russell Mid-Cap Growth Index. ‡ Effective June 1, 2015, the benchmark for the International Fund was changed to the Morgan Stanley Capital International All Country World ex U.S. Index (“ACWI ex U.S.”). For periods prior to June 1, 2015, the applicable benchmark was the Morgan Stanley Capital International Europe, Australia and the Far East Index (“EAFE”). The benchmark performance shown in this presentation reflects the linked performance of the two benchmarks for the respective applicable periods.
As of December 30, 2019, the benchmark for the International Small Cap Equity Fund is the MSCI ACWI ex-US Small Cap Index, which captures small cap representation across 22 of 23 Developed Markets (DM) countries (excluding the US) and 26 Emerging Markets (EM) countries.
All data sourced from FactSet unless otherwise noted. FactSet returns can vary from other sources due to different methodologies. Active share is defined as the sum of the absolute value of the differences between the weights of the securities in a portfolio and the weights of securities in the fund’s benchmark, divided by two.
The CUIT Money Market Fund is not guaranteed by the U.S. Government and there can be no assurance that a stable net asset value of $1.00 can be maintained.
The comparative indices represent unmanaged or average returns on various financial assets which can be compared to the Funds’ total returns for the purpose of measuring relative performance, but are not necessarily intended to parallel the risk or investment approach of your investments. The indices do not incur taxes or expenses but are inclusive of dividends and interest. Comparative index information is provided by certain third parties; information regarding composition of indexes may be obtained from provider or CBIS.
The CUIT Funds are exempt from registration with the Securities and Exchange Commission and therefore are exempt from certain regulatory requirements applicable to registered mutual funds. Performance for periods of one year and longer are annualized. All Fund performance, except where otherwise noted, is reported net of any fees and expenses, but inclusive of dividends and interest. The return and principal value of the Funds will fluctuate and, upon redemption, shares in the Funds may be worth less than their original cost. Past performance is not indicative of future performance.
CBIS offers pooled funds on behalf of a not-for-profit investment trust, Catholic United Investment Trust (CUIT). Offering Memoranda / Disclosure Statements, which contain further information regarding each of the Funds, including certain restrictions regarding redemptions, are available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Funds. Shares in the CUIT Funds are offered exclusively through CBIS Financial Services, Inc., a broker-dealer subsidiary of CBIS.
The S&P 500 Index and S&P SmallCap 600 Index are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and have been licensed for use by CBIS. Standard & Poor’s®, S&P®, S&P 500® and S&P SmallCap 600® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). The trademarks have been licensed to SPDJI and have been sublicensed for use for certain purposes by CBIS. The CUIT Core Equity Fund and the CUIT Small Cap Equity Index Fund are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the CUIT Core Equity Fund, the CUIT Small Cap Equity Index Fund, or any member of the public regarding the advisability of investing in securities generally or in the CUIT Core Equity Fund or the CUIT Small Cap Equity Index Fund particularly or the ability of the S&P 500 Index and S&P SmallCap 600 Index to track general market performance. S&P Dow Jones Indices’ only relationship to CBIS with respect to the S&P 500 Index and the S&P SmallCap 600 Index is the licensing of the Indices and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P 500 Index and the S&P SmallCap 600 Index are determined, composed and calculated by S&P Dow Jones Indices without regard to CBIS, the CUIT Core Equity Fund, or the CUIT Small Cap Equity Index Fund. S&P Dow Jones Indices has no obligation to take the needs of CBIS, the owners of the CUIT Core Equity Fund, or the owners of the CUIT Small Cap Equity Index Fund into consideration in determining, composing or calculating the S&P 500 Index and the S&P SmallCap 600 Index. S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices, and amount of the CUIT Core Equity Fund and the CUIT Small Cap Equity Index Fund or the timing of the issuance or sale of the CUIT Core Equity Fund and the CUIT Small Cap Equity Index Fund or in the determination or calculation of the equation by which the CUIT Core Equity Fund and the CUIT Small Cap Equity Index Fund are to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of the CUIT Core Equity Fund or the CUIT Small Cap Equity Index Fund. There is no assurance that investment products based on the S&P 500 Index and the S&P SmallCap 600 Index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.
S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500 INDEX AND THE S&P SMALLCAP 600 INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY CBIS, OWNERS OF THE CUIT CORE EQUITY FUND AND THE CUIT SMALL CAP EQUITY INDEX FUND OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX AND THE S&P SMALLCAP 600 INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND CBIS, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.
Bloomberg Index Services Limited: BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
Investment Portfolio Review 4Q 2019
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