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Christian Brothers Investment Services, Inc. n info@cbisonline.com PAGE 1
1Q 2016
Investment Portfolio Review
LEADING CATHOLIC INSTITUTIONAL
INVESTMENT MANAGER
} Over $6 billion in assets under management
} Exclusively serve Catholic institutions
} Founded and owned by the De La Salle Christian Brothers
PIONEERED CATHOLIC RESPONSIBLE
INVESTING
} Thoughtful and disciplined Catholic investment screens
} Encourage companies to improve policies and practices through active ownership
DIVERSIFIED INVESTMENT PROGRAMS
} Manager of managers } Institutional pooled funds
and separate accounts
UNIFY FAITH AND FINANCE
} Align mission with investments
DIVERSE RANGE OF NEEDS
} Portfolio services for a range of institutions
} Single- and multi-product relationships with institutions and their consultants
GLOBAL CLIENT BASE
} Religious Institutes } Dioceses } Education } Healthcare
CBIS helps Catholic organizations achieve their financial goals through the socially responsible management of their investments.
9%
84%
7%
1%
11%
8%
6%
6%5%27%
23%
6%6%
BY PRODUCT TYPE ($MILLION)
BY CUIT TYPE ($MILLION)
Separate Accounts $568Global Funds PLC (UCITS) $433CUIT Funds $5,184
Money MarketOpportunistic BondBalancedCore IndexValue
Short bondInt. Diversified BondSmall capGrowthInternational
CBIS Asset Review
$6.2 BILLION IN TOTAL ASSETS
UNDER MANAGEMENT (3/31/16)
Key Highlights:Market Overviewpage 2
Investment Program Offeringspage 8
CBIS Fund’s Performancepage 9
CBIS Fund Reportspage 10
Investment Portfolio Review 1Q 2016
Christian Brothers Investment Services, Inc. n info@cbisonline.com PAGE 2
Market Summary
An early sell-off, with U.S. equities down 10% and other broad measures of global equities falling into bear market territory.
Dovish moves by global central banks came once again to the rescue of faltering markets, and fortunes reversed by quarter-end.
The U.S. dollar rally stalled and the U.S. currency generally weakened.
The prevalence of negative yields in Europe and Japan shaped fixed-income market returns in Q1, while U.S. bonds showed generally strong returns.
The Fed cited slow global growth as a factor in reducing its 2016 U.S. economic outlook, the ECB lowered its outlook for Eurozone growth and the outlook for Japan was weakest of all.
Velocity declined during the financial crisis, but has continued to fall despite modest economic growth.
An increase in excess reserves in the banking system has occurred, but the growth of deposits has not been accompanied by an increase in loans.
Regulation may have had the unintended consequence of restricting capital.
1Q 2016
Market OverviewUNINTENDED CONSEQUENCES
If an object lesson were ever needed in the futility of fervidly overanalyzing the market’s every twist, turn, jump and dive, the first quarter of 2016 could hardly be surpassed. It was a wild ride, and for all its drama it went almost nowhere. The year began with renewed fears of deepening global economic malaise, visibly marked by a drop in oil prices from $35/barrel to $25/barrel by mid-February. Investors faced what looked like a perfectly bearish storm:
} A relentlessly weak Eurozone economy
} Heavily indebted emerging market economies burdened by depressed commodity prices and a strengthening U.S. dollar
} Broad concerns over China’s economic slowdown
} The prospect of four U.S. Federal Reserve rate hikes in the year ahead
Stocks fell and credit spreads surged as “risk off” sentiment dominated global markets. By early February, U.S. equities were off 10% in one of the worst starts to a year in history, while other broad-based measures of global equities fell into bear market territory (a decline of 20% from the highs) for the first time since 2011.
And then something changed.
What that was is hard to pinpoint in time, but not in kind. Dovish talk and then dovish action by the enormously powerful cabal of global central banks came once again to the rescue of faltering markets, as it has so many times since the financial crisis of 2008-2009. It began in January with the Bank of Japan’s introduction for the first time of a negative policy rate to jolt its economy away from deflation. In February
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Investment Portfolio Review 1Q 2016
despite the BOJ’s actions. In terms of sector performance, financials were weak both in the U.S and globally on fears of the impact of low to negative global yields on bank loan margins and, in some cases, potential exposure to energy sector debt impaired by the global collapse in oil prices since 2014. Healthcare was also weak, due in part to continued fallout from public disaffection over high drug prices, which has become an issue in the U.S. presidential election campaign. Utilities and telecom were by far the strongest U.S. sectors given the fall in yields during the quarter. Energy and consumer staples were moderately strong both in the U.S. and globally, with low- to mid-single digit gains.
The prevalence of negative yields in Europe and Japan shaped fixed-income market returns in Q1. German bund yields fell further into negative territory, out to the seven-year maturity. And in late March, Bloomberg reported that nearly $8 trillion of bonds globally now have negative yields, forcing many global bond investors into positive-yielding U.S. markets. Along with a dovish Fed, this drove U.S. rates down in Q1. U.S. Treasury yields declined 40 to 55 basis points along the curve from the three-year to the 30-year maturity. U.S. credit spreads spiked sharply higher through early February along with the decline in equity markets, but recovered, and ended the period little changed. For the quarter, U.S. bonds showed generally strong returns. The Barclays U.S. Aggregate Index returned +3.0%, while long Treasuries posted the highest returns, at +8.5% for the Barclays U.S. Aggregate Government 20+ year Index. Other than the mortgage-backed sector, which underperformed Treasuries due to the increased market volatility, all other fixed income sectors outperformed Treasuries on a duration-adjusted basis.
ECONOMIC OVERVIEW
The Fed cited slow global growth and potentially weaker U.S. exports as a factor in reducing its 2016 U.S. economic outlook in March to real growth of 2.2% from 2.4% early in the year. The ECB lowered its outlook for Eurozone growth from 1.7% to 1.4% in March and reduced its inflation outlook to just 0.1% from 1.0% as the year began. The outlook for Japan was weakest of all. Japan’s economy contracted by 1.4% in the final quarter of 2015 and in early April economists expected only
the People’s Bank of China reduced reserve requirements and, with the full authority of China’s command economy, encouraged more lending. In February, markets were soothed by hints that the European Central Bank (ECB) and U.S. Federal Reserve were prepared to use policy tools to counter a faltering economic outlook and weak financial markets. In March, the ECB unveiled a raft of new measures to again stimulate Eurozone growth, including a 20 billion euro increase in monthly bond purchases under its quantitative easing program, an expansion of the program to include highly rated corporate bonds and a series of loan incentives to foster bank lending to Eurozone businesses. The Fed blinked too. At its March meeting it said its planned four rate hikes in 2016 were officially off the table and that only two were now likely, citing concern over financial market volatility and a more pessimistic view of U.S. and global economic prospects.
Beginning in mid-February, markets began to register these moves. The U.S. dollar rally stalled and the U.S. currency generally weakened as the quarter continued. Oil prices firmed, helped by rumors of planned production cuts, and then rose sharply to near $40 by quarter end. Credit spreads narrowed forcefully from February highs. U.S. equity markets rallied as sharply as they had fallen. By quarter-end, anyone who had been away for three months could be forgiven for thinking that little of note had actually happened. In a real sense, they would have been right.
Global equity markets were slightly weaker than the more buoyant U.S. market for the quarter. In local currency terms, the all-developed market MSCI EAFE Index returned -6.4%, while a weaker dollar led to a better -2.9% return for U.S. dollar-based investors. The S&P 500 managed a +1.3% advance. Emerging markets performance was mixed and varied greatly depending on local economic and political conditions, but overall the MSCI Emerging Markets Index outperformed developed markets, gaining +2.8% in terms of local currencies and +5.7% in U.S. dollar terms. Developed European market equities showed pockets of weakness; in euro terms Germany fell about -7.0%, France -4.5% and Italy a notable -15.8% on fears over its banking sector’s solvency. Japan declined -12.5% in yen but only -6.4% in U.S. dollar terms as the yen strengthened
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Investment Portfolio Review 1Q 2016
UNINTENDED CONSEQUENCES
Global central banks have cut policy rates 637 times and spent $12.3 trillion on asset purchases since the Great Financial Crisis (GFC) of 2008, according to a Bloomberg news story published in late March (“Helicopter Money Takes Flight as Latest Drastic Monetary Idea”). And yet they stand prepared to do even more, based on public statements by Fed, BOJ and ECB officials during Q1, to stimulate growth, ward off deflation and prop up markets. U.S. Federal Reserve Chairman Janet Yellen was asked during Congressional testimony whether the Fed would consider a move to a negative interest rate policy (NIRP) and she notably refused to rule it out. While the European experiment with NIRP has, so far, produced few unexpected ill effects, the announcement of NIRP in Japan was accompanied by increased market volatility and an unforeseen strengthening of the Japanese yen.
Averages can be deceiving. In recent quarterly letters we have discussed the divergences in the equity markets: growth versus value, large-cap versus small-cap, FANG (Facebook, Alphabet, Netfix, Google) versus everyone else. Divergences are not exclusive to the equity markets. The broad stock market, as measured by the Wilshire 5000, has risen approximately 20% per year since the market bottom in 2009 and unemployment has declined to approximately 5% from an October 2009 peak of 10%, yet average real income in the U.S. is flat over the period and the labor participation rate has declined to levels not seen since the late 1970s. A potentially more analytically illuminating divergence is highlighted in a Goldman Sachs study (“The Two-Speed Economy”) published in April 2015. The study found that:
} Large firms, those with annual revenue in excess of $50 million, experienced revenue growth of 8% on a compound annual basis between 2009 and 2011.
} Smaller firms, those with annual revenue less than $10 million, experienced revenue growth of only 2% over the same timeframe.
0.7% GDP growth in 2016, 0.2 percentage points lower than a month before. For 2017, the growth outlook for Japan is only 0.6%. China’s prospect for 6.5% real growth in 2016 seems super-charged by comparison, but represents the nation’s slowest growth rate in twenty-five years. In early April, the International Monetary Fund (IMF) again cut its global growth forecast to 3.2% in 2016, down by 0.2 percentage point from its January projection; the IMF said China’s slowdown and weak commodity prices were weighing on emerging market economies more than it had expected, while developed market nations were still struggling to escape the legacies of the 2008/2009 financial crisis.
With such a broad-based backdrop of economic malaise, the market rally during the second half of the quarter had no counterpart in stronger corporate earnings estimates. In fact, earnings estimates generally declined as the quarter unfolded. In early April, Zacks.com (which tracks analysts’ earnings forecasts) projected a -10.9% decline for Q1 2016 S&P 500 earnings on 2.2% lower revenue; this is down from a projected -1% decline at the beginning of the year. The weakness was broad based, effecting 14 of the 16 economic sectors Zacks monitors. Earnings are set to decline again in Q2, based on Zacks’ estimates, down -5.5%. Year-to-year gains begin in Q3 with a projected +8.1% increase, with Q4 showing a more optimistic +11.8% gain. Part of the second half strength is due to better year-to-year comparisons for energy, but that only illuminates the broader challenge facing corporate America in its search for the earnings growth that underpins stock prices. Projections for calendar year 2017 earnings growth for the S&P 500 remains an optimistic +13.6%, based on Factset data, but that would seem to require a much stronger economic growth backdrop than is evident right now in most global regions. If central bank policy is going to ever translate into real economic strength, the results cannot be postponed forever. In the long run, stock prices are based on earnings. Earnings growth, far more than central bank policy, will eventually be needed to power further market gains.
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Investment Portfolio Review 1Q 2016
paper published by the Harvard Kennedy School in 2015 states “Community bank’s share of U.S. banking assets and lending markets has fallen from over 40 percent in 1994 to around 20 percent today. Interestingly, we find that that community banks emerged from the financial crisis with a market share 6 percent lower, but since the second quarter of 2010 – around the time of the passage of the Dodd-Frank Act – their share of commercial banking assets has declined at a rate almost double that between the second quarter of 2006 and 2010.” In an effort to protect the financial system, new regulation may have had the unintended consequence of restricting capital to fuel economic growth.
The other potential unintended consequence we are monitoring is the impact of unique monetary policies. It will probably take years to determine the true impact of the grand experiment in central banking known as quantitative easing (QE) and the true efficacy of post-financial crisis monetary policy. We know we have so far avoided a second Great Depression. The U.S. economy is growing (albeit at a slow pace by historical standards) and unemployment has declined to about 5%. From the Fed’s perspective, it could have been a lot worse. However, we don’t know what the long-term implications will be. Increasingly linked global economies and capital markets mean that many variables and interrelationships shape the financial impact of central bank policy. And given the Fed’s inclination to be more rather than less transparent, the markets have been filled with numerous “crowded trades” which can temporarily cloud the true market-based effects of policy actions. While it is too early to conclusively judge the impact of QE in the U.S., it is not too early to observe that the power of similar monetary tools used in Europe and Japan seems to be diminishing and that monetary policy alone cannot change an economy’s structural dynamics. For example, Japan’s experience has shown it is very difficult to generate inflation in an ageing population. Maybe immigration isn’t such a bad thing after all. While it is too early to declare U.S. monetary policy a success or failure, there are a few things that bear watching as the Fed embarks on its journey to normalize monetary policy.
} The cumulative change in employment at firms with fewer than 500 employees historically outpaced the comparable figure for large firms. This trend has reversed since 2008, with the rise in employment at smaller firms running significantly below that of larger firms.
} Wage growth lags at small firms versus larger firms.
The study also highlights the fact that the number of small firms declined over the five years that followed the GFC – the first such occurrence since the data became available in 1977. Given the role small business creation has played historically in supporting U.S. economic growth these statistics provide a potential explanation for why the strength of the current economic recovery has lagged that of past recoveries. And it begs the question: why has the environment been so difficult for small firms?
One answer may be found in the changing U.S. banking environment. Small- and medium-sized businesses are more dependent on bank lending than are larger counterparts. Large firms have access to other sources of credit through the capital markets. The well-intentioned introduction of the Dodd Frank Act (DFA), which became law in 2010, may have had the unfortunate unintended consequence of restricting the primary source of capital needed to fuel small business growth. Consider a quote from Fed Governor Elizabeth Duke’s testimony to Congress in February 2010, “Some banks may be overly conservative in their small business lending because of concerns that they will be subject to criticism from their examiners…some potential profitable loans to creditworthy small businesses may have been lost because of these concerns, particularly on the part of small banks.” (Emphasis added) Furthermore, a Federal Reserve Bank of Richmond report in March 2015 notes that “The rate of new bank formation has fallen from an average of about 100 per year since 1990 to an average of about three per year since 2010.” The report also points out that new bank formation is more likely when there are fewer regulatory restrictions. Such regulations, as were passed in DFA, may be particularly burdensome for small banks that are just getting started. Finally, a working
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Investment Portfolio Review 1Q 2016
There is an idea in economics called “the quantity theory of money.” It states that nominal GDP growth equals the amount of money in the economy multiplied by the number of times the money is used. The number of times money is used during a given period is called “velocity.” The early monetarist economists assumed velocity was constant in the short run, therefore nominal economic activity was directly related to the growth in the money supply. They also believed the economy naturally grew close to potential, hence money growth in excess of the growth in potential GDP led to price increases. The variability of velocity in the 1980s and 1990s called into question the ability of the quantity theory to explain inflation, however velocity is still quite useful as a gauge for the demand for money. What does velocity tell us now?
Velocity declined during the financial crisis as one would expect, but it has subsequently continued to fall despite modest and steady economic growth. Increases in the money supply have simply been offset by an increase in money demand and a decrease in velocity. Are we experiencing the Keynesian liquidity trap? Is the amount of Fed bond purchases from non-bank participants simply being offset by a rise in banking reserves without an increase in lending activity?
Certainly, money demand would increase as participants hoard cash as a result of unfavorable economic expectations. This is a plausible explanation for the decline in money velocity post GFC. An article published by the Federal Reserve
Bank of St Louis lays out an explanation for the continued decline in velocity: the success of the Fed. As the Fed has been successful in driving interest rates toward zero, there is very little incentive to hold interest bearing assets such as Treasury bills and certificates of deposit (CDs) as opposed to non-interest bearing forms of money. From this perspective, the decline in velocity is a measure of the Fed’s success. A more cynical perspective would hold that the more artificial the level of interest rates, the more cautious decision makers become, the slower economic activity and therefore the lower money velocity. Artificially low rates will then prompt games such as stock buybacks, mergers and acquisitions, but these are essentially accounting maneuvers yielding little new productivity and are of value only to shareholders.
We have also seen an increase in excess reserves in the banking system. The growth of deposits in banks has not been accompanied by an increase in loans. Rather, banks are simply holding excess reserves. Again, this can be viewed optimistically as an indicator of the success of monetary policy managing the level of interest rates. In 2008, the Fed began paying interest on these reserves. The short-term impact of this policy is a decrease in the opportunity cost of holding reserves versus loans. Liquidity from Fed policy has been trapped away from the real economy and driven into the financial economy, as we have noted in prior quarterly letters.
VELOCITY OF M2 MONEY STOCK
Source: Federal Reserve Bank of St. Louis (FRED), research.stlouisfed.org
2.3
2.2
2.1
2.0
1.9
1.8
1.7
1.6
1.5
1.41960 1970 1980 1990 2000 2010
Ratio
QUARTERLY SHARE REPURCHASES ($M) AND NUMBER OF
COMPANIES REPURCHASING SHARES
Source: FactSet
$180,000$160,000$140,000$120,000$100,000
$80,000$60,000$40,000$20,000
400380360340320300280260240
‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15
S&P 500 Quartely Buybacks (Left)
Companies Repurchasing Shares (Right) U.S. Recessions
S&P 500 Index Price (Hidden)
Christian Brothers Investment Services, Inc. n info@cbisonline.com PAGE 7
Important InformationThis is for informational purposes only and does not constitute an offer to sell any investment. The funds are not available for sale in all jurisdictions. Where available for sale, an offer will only be made through the prospectus for the funds, and the funds may only be sold in compliance with all applicable country and local laws and regulations.
While some economic analysts believe the increase in reserves is a harbinger of inflation and beyond the control of the Fed, we need to recognize that the interest paid on reserves has become a new Fed policy tool. Unfortunately, we don’t know how this new tool will work as the Fed raises interest rates in the future and manages the drawdown of its balance sheet. The arcane statistics of excess bank reserves and velocity may well hold the key to economic performance over the next several years.
QUANTITATIVE EASING SUPPORTING EQUITY MARKETS? EXPLOSION OF EXCESS RESERVES: THE NEW NORMAL
Source: research.stlouisfed.org Source: Federal Reserve Bank of St. Louis, research.stlouisfed.org
4,800,000
4,400,000
4,000,000
3,600,000
3,200,000
2,800,000
2,400,000
2,000,000
1,600,000
1,200,000
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
Mill
ions
of D
olla
rs
Index
2010 2012 2014
All Federal Reserve Banks - Total Assets (left) Excess Reserves of Depository InstitutionsS&P 500© (right)
2,800,000
2,400,000
2,000,000
1,600,000
1,200,000
800,000
400,000
0
1985 1990 1995 2000 2005 2010 2015
Mill
ions
of D
olla
rs
As winter recedes into the past, the days are becoming longer, new growth is sprouting in the garden, and we are optimistic that the initial financial impacts of Fed policies and new regulation are subsiding. Monetary policy is normalizing in the U.S. and the inherent dynamism of the U.S. economy has slowly reasserted itself through innovation and slow but steady expansion. As a result, we are hopeful that lending to small- and mid-sized business will also improve and enable the U.S. economy to continue on an upward trajectory. Faith in central banks has powered the markets for the past several years, creating what is now an aging bull market. But faith in the economy’s propensity to grow, helped by the willingness of small- to mid-sized banks to lend, has been dormant. If that can reawaken, economic growth, corporate earnings and equities may benefit from another and more traditional form of support.
Investment Portfolio Review 1Q 2016
Investment Portfolio Review 1Q 2016
Christian Brothers Investment Services, Inc. n info@cbisonline.com PAGE 8
INVESTMENT PROGRAM OFFERINGSCBIS Offers Pooled Funds through its CUIT and Global Funds plc (UCITS) Fund families
CUIT FUND BENCHMARK MANAGER(S)
CUIT Money Market Fund 91-Day Treasury Bill Wellington
CUIT Short Bond Merrill Lynch 1-3 Year Treasury Index Longfellow
CUIT Intermediate Diversified Bond Barclays Capital Aggregate Index Dodge & Cox, Jennison, Reams
CUIT Opportunistic Bond Barclays 1-5 Year US Gov’t Credit Index Longfellow and Reams
CUIT Balanced 60% S&P 500 / 40% BCAgg Dodge & Cox, Jennison, Reams, RhumbLine
CUIT Core Equity Index S&P 500 RhumbLine
CUIT Value Equity Russell 1000 Value Index AJO, Dodge & Cox
CUIT Growth Equity Russell 1000 Growth Index LA Capital, Wellington
CUIT Small-Cap Equity Index Russell 2000 Index RhumbLine
CUIT International Equity MSCI ACWI Ex-U.S. Index Causeway, Principal Global, WCM
UCITS FUND BENCHMARK MANAGER(S)
European Short-Term Government Bond Barclays Euro Gov’t Bond Index 1-3 Year ARCA
World Bond Barclays Capital Global Aggregate Index Schroder Investment Management
European Equity MSCI Europe Index Degroof Fund Management Company
World Equity MSCI AC World IndexScott Investment Partners; Los Angeles Capital Management Equity Research
Note: UCITS Funds are not available in the U.S., but can be purchased currently in select countries around the world.
Investment Management ProcessCBIS hires institutional investment management firms to manage our institutional funds and separately managed portfolios. We typically combine two or more managers in actively managed funds in order to achieve our investment objective.
MANAGERIDENTIFICATIONAND SELECTION
PORTFOLIOCONSTRUCTION
ON-GOINGDUE DILIGENCE
Proven Investment Process
Defined Core Competency
Value add over a full market cycle
Preference for majority-owned firms
Assess CRI Impact
Diversification of manager core competencies
Improved risk-adjusted returns
Managed Active Share
Systematic evaluation process
Quantitative and qualitative assessment
Analyze any disconnect between expectations and reality
Investment Portfolio Review 1Q 2016
Christian Brothers Investment Services, Inc. n info@cbisonline.com PAGE 9
INVESTMENT OPTION/BENCHMARK 1 MONTH
3 MONTHS
1YEAR
3 YEARS
5 YEARS
10 YEARS
SINCE INCEPTION
INCEPTION DATE
CUIT Money Market Fund 0.02 0.05 0.06 0.04 0.03 1.02 3.40 Jan 1985
Merrill Lynch 91-Day TBill Index 0.05 0.07 0.12 0.07 0.08 1.15 3.85
CUIT Short Bond Fund 0.34 0.80 0.94 1.14 1.74 3.15 5.40 Jan 1985
Merrill Lynch 1-3yr Treasury Index ** 0.18 0.90 0.92 0.77 0.87 2.47 5.27
CUIT Opportunistic Bond Fund Class A 0.91 1.33 1.47 * * * 1.13 May 2013
CUIT Opportunistic Bond Fund Class B 0.92 1.37 1.62 * * * 1.27 May 2013
Barclays 1-5 Year US Government/Credit Index 0.52 1.61 1.62 * * * 1.28
CUIT Inter. Diversified Bond Fund Class A 1.64 2.97 1.13 2.21 3.85 5.37 6.05 Jan 1995
CUIT Inter. Diversified Bond Fund Class B 1.65 3.01 1.29 2.37 4.01 5.53 4.96 Jan 2003
Barclays Capital Aggregate Bond Index 0.92 3.03 1.96 2.50 3.78 4.90 6.01 / 4.46
CUIT Balanced Fund 4.79 1.09 (1.17) 6.77 7.62 5.80 8.71 Dec 1983
60% S&P 500/ 40% BC Agg*** 4.44 2.11 2.09 8.18 8.61 6.47 8.66
CUIT Value Equity Fund Class A 7.24 (2.06) (5.57) 8.34 9.11 4.92 9.14 Jan 1995
CUIT Value Equity Fund Class B 7.26 (1.96) (5.23) 8.72 9.50 5.29 8.91 Jan 2003
Russell 1000 Value Index 7.20 1.64 (1.54) 9.38 10.25 5.72 9.75 / 8.63
CUIT Core Equity Index Fund Class A 6.89 1.21 0.77 11.39 11.04 6.43 9.12 Jan 1995
CUIT Core Equity Index Fund Class B 6.92 1.26 0.98 11.61 11.26 6.62 4.57 Mar 2000
Standard & Poor’s 500 Index ++ 6.78 1.35 1.78 11.82 11.58 7.01 9.39 / 4.59
CUIT Growth Fund Class A 6.07 0.52 2.82 12.90 10.82 6.32 8.17 Jan 1991
CUIT Growth Fund Class B 6.11 0.60 3.16 13.27 11.17 6.65 8.12 Jan 2003
Russell 1000 Growth Index **** 6.74 0.74 2.52 13.61 12.38 8.28 9.21 / 9.47
CUIT Small Cap Equity Index Fund Class A 7.94 (1.66) (10.06) 6.37 6.61 * 4.76 Jan 2007
CUIT Small Cap Equity Index Fund Class B 7.94 (1.56) (9.83) 6.68 6.91 * 5.05 Jan 2007
Russell 2000 Index 7.98 (1.52) (9.76) 6.84 7.20 * 5.26
CUIT International Equity Fund Class A 6.80 (1.57) (7.00) 2.45 1.85 1.47 5.33 Jan 1995
CUIT International Equity Fund Class B 6.83 (1.47) (6.64) 2.86 2.26 1.88 1.09 Mar 2000
MSCI ACWI Ex-U.S. ‡ 8.21 (0.26) (8.63) 2.40 2.59 2.18 4.89 / 2.75
Please review the Important Disclosures on page 29 for further information.
CUIT Funds Performance (March 31, 2016)
Investment Portfolio Review AUGUST 2014
Christian Brothers Investment Services, Inc. n info@cbisonline.com PAGE 10
Heading Goes HereFUND FACTS
PROFILE Q1 2016
Christian Brothers Investment Services, Inc. (800) 592-8890 n info@cbisonline.com
CUIT Money Market Fund
Objective Preserve capital, provide current income; and maintain liquidity
InvestmentsHigh quality, short-term, fixed-income obligations
StrategyLiquidity and credit quality are maintained by investing only in securities rated A-1/P-1 or higher; average portfolio maturity is 90 days or less, while 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
BenchmarkML 91 Day Treasury Bill
Asset ManagersWellington Management Company (Effective 8/1/01)
Total Expense Ratio / Minimum 0.24% / No Minimum
MATURITY DISTRIBUTION %
FUND
0-7 Days 13.30
8-29 Days 19.47
30-59 Days 14.96
60-89 Days 15.03
90-179 Days 33.31
180 and Over 3.93
PORTFOLIO ANALYSIS
STATISTICS FUND ML T-BILL
Effective Duration 0.21 (Yrs) 0.13 (Yrs)
Average Quality AA+ Treasury
Yield-to-Maturity 0.65% 0.13%
Fund Size $69.7MM
CREDIT QUALITY %
FUND ML T-BILL
A-1+ or higher 85.0 100.0
A-1 12.0 0.0
<A-1 3.0 0.0
Not Rated 0.0 0.0
3%
2%
1%
0%
CUIT Money Market A ML 91-Day T-Bill Index
FUND PERFORMANCE
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Money Market A 0.05 0.06 0.04 0.03 1.02
ML 91-Day T-Bill Index 0.07 0.12 0.07 0.08 1.15
CALENDAR YEAR RETURN 2015 2014 2013 2012 2011
CUIT Money Market A 0.02 0.05 0.01 0.00 0.00
ML 91-Day T-Bill Index 0.05 0.04 0.07 0.11 0.10
Please see Important Information on Page 2
3 MO 1 YR 3 YR 5 YR 10 YR
Investment Portfolio Review AUGUST 2014
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Heading Goes Here
Christian Brothers Investment Services, Inc. n info@cbisonline.com PAGE 2 | CB -FFS-005-0416
Important InformationBenchmark Index: ML 91-Day T-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. 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.
CUIT Money Market Fund
ALLOCATIONS %
US Government & Agencies
Certificates of Deposit
Repurchase Agreements
Commercial Paper Corporate
Asset-BackedSecurities
Non-CorporateCredit
Fund 55.3 4.4 6.6 2.7 21.6 7.7 1.8
ML T-BILL 100 0.0 0.0 0.0 0.0 0.0 0.0
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PROFILE Q1 2016
Christian Brothers Investment Services, Inc. (800) 592-8890 n info@cbisonline.com
CUIT Short Bond Fund
Objective Preserve capital while providing current income in excess of cash market yields with moderate emphasis on capital appreciation
InvestmentsU.S. government, agency, corporate, asset-backed and mortgage-backed securities with an average maturity of less than five years; up to 10% of the portfolio may be invested in securities rated below investment-grade (including U.S. dollar-denominated domestic, supranational or foreign issues)
StrategyFocuses on sector allocation and security selection, coupled with a top-down macroeconomic risk management process; aimed at minimizing downside risk while maximizing income potential
BenchmarkMerrill Lynch 1–3 Year Treasury Index
Asset ManagersLongfellow Investment Management Co. (Effective 7/1/08)
Total Expense Ratio / Minimum 0.33% / No Minimum
PORTFOLIO ANALYSIS
STATISTICS FUND BENCHMARK
Average Maturity 1.90 (Yrs) 1.94 (Yrs)
Effective Duration 1.50 (Yrs) 1.91 (Yrs)
Average Quality AA- AAA
Yield-to-Maturity 2.22% 0.85%
Current Yield 3.22% N/A
# of Securities 196 90
Fund Size $350.3MM
EFFECTIVE DURATION %
FUND BENCHMARK
< 1 Year 41.50 N/A
1-3 Years 48.60 100.00
3-5 Years 9.20 N/A
5-7 Years 0.70 N/A
7-10 Years N/A N/A
10-20 Years N/A N/A
> 20 Years N/A N/A
CREDIT QUALITY %
FUND BENCHMARK
AAA 46.75 100.0
AA 9.64 N/A
A 14.45 N/A
BBB 17.99 N/A
Below BBB 5.48 N/A
Cash 5.69 N/A
4%
3%
2%
1%
0%
CUIT Short Bond A ML 1-3 Year Treasury Index
FUND PERFORMANCE
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Short Bond A 0.80 0.94 1.14 1.74 3.15
ML 1-3 Year Treasury Index 0.90 0.92 0.77 0.87 2.47
CALENDAR YEAR RETURN 2015 2014 2013 2012 2011
CUIT Short Bond A 0.81 1.37 0.84 2.98 2.31
ML 1-3 Year Treasury Index 0.54 0.62 0.36 0.43 1.55
Please see Important Information on Page 2
3 MO 1 YR 3 YR 5 YR 10 YR
RISK METRICS
CHARACTERISTICS FUND / 5 YR BENCHMARK / 5 YR
Sharpe Ratio 2.57 1.31
Information Ratio 2.00 0.00
Standard Deviation 0.78 0.61
Tracking Error 0.60 0.00
Downside Capture 29.71 100.0
Upside Capture 169.66 100.00
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Important InformationBenchmark Index: ML 1–3 Yr. Treasury Index eff. 7/1/01; ML 1–5 Yr. G/C Index eff. 7/1/97; 50% Lehman Intermediate Govt Index/50% Lehman 1–3 Yr. Govt Index eff. 5/1/96. Characteristics presented for the Short Bond Fund were compiled using data from Barclays Capital U.S. 1-3 Year Treasury Bond Index, which differs from the index used to benchmark fund performance. 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. 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.
CUIT Short Bond Fund
ALLOCATIONS %
Treasuries Agency Industrials Finance Utilities Non-Corp. MBS CMO CMBS ABS Municipals Cash
Fund 12.26 12.34 12.03 15.21 3.21 0.0 2.63 1.12 17.37 15.12 3.03 5.69
Benchmark 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
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Heading Goes HereFUND FACTS
PROFILE Q1 2016
Christian Brothers Investment Services, Inc. (800) 592-8890 n info@cbisonline.com
CUIT Opportunistic Bond Fund
Objective Current income and long-term capital appreciation
InvestmentsU.S. government, agency, corporate, and mortgage-backed securities; primarily investment grade with no more than 20% of the portfolio rated below BBB; up to a 10% allocation to merger/arbitrage sector
StrategyUses top down macroeconomic analysis, along with fundamental industry and company research, to capture inefficiencies in the valuation of sectors and individual securities; this is combined with duration management (+/– 2.5 years of the benchmark) in pursuit of above-benchmark returns over a full market cycle
BenchmarkBarclays Capital 1-5 Year Government/Credit Index
Asset ManagersLongfellow Investment Management (Effective 5/1/13); Reams AssetManagement Co. (Effective 5/1/13)
Total Expense Ratio/MinimumClass A: 0.56% / No MinimumClass B: 0.41% / $5M
PORTFOLIO ANALYSIS
STATISTICS FUND BENCHMARK
Average Maturity 2.72 2.85
Effective Duration 2.12 (Yrs) 2.72 (Yrs)
Average Quality AA AA
Yield-to-Maturity 2.28% 1.37%
Current Yield 3.01% 2.20%
# of Securities 355 2,999
Fund Size $378.1MM
EFFECTIVE DURATION %
FUND BENCHMARK
< 1 Year 29.37 1.00
1 - 3 Years 41.15 59.30
3-5 Years 26.44 39.70
5-7 Years 2.83 0.00
7-10 Years 0.00 0.00
10-20 Years 0.23 0.00
> 20 Years N/A 0.00
CREDIT QUALITY %
FUND BENCHMARK
AAA 49.44 68.88
AA 5.88 6.50
A 15.48 12.50
BBB 21.16 12.05
Below BBB 6.85 0.07
Cash 1.19 N/A
10%
5%
0%
CUIT Opport. Bond B Barclays 1-5 Yr Gov't/Credit
FUND PERFORMANCE
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Opport. Bond A 1.33 1.47 – – –
CUIT Opport. Bond B 1.37 1.62 – – –
Barclays 1-5 Yr Gov't/Credit 1.61 1.62 – – –
CALENDAR YEAR RETURN 2015 2014 2013 2012 2011
CUIT Opport. Bond A 0.98 1.23 – – –
CUIT Opport. Bond B 1.23 1.27 – – –
Barclays 1-5 Yr Gov't/Credit 0.97 1.42 – – –
Please see Important Information on Page 2
3 MO 1 YR 3 YR 5 YR 10 YR
*Allocations exclude M&A.
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Important InformationBenchmark Index: 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. 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.
CUIT Opportunistic Bond Fund
ALLOCATIONS %
Treasuries Agency Industrials Finance Utilities Non-Corp. MBS CMO CMBS ABS MunicipalsMerger/
Arbitrage Cash
Fund 15.70 2.71 18.22 16.97 2.15 0.00 3.40 3.08 19.07 8.91 2.48 6.19 1.11
Benchmark 59.88 8.52 14.40 11.08 1.37 4.13 0.0 0.0 0.0 0.0 0.61 0.0 0.0
All attribution is based on gross portfolio performance.
Active Weights
44.18%
Treasuries-5.81%
Agency 3.40%
MBS
3.08%
CMO
1.86%Municipals
6.19%
M&A
1.11%
Cash
3.82%
Industrials
5.89%
Finance
0.78%Utilies -4.13%
Non-Corp.
19.07%8.91%
CMBS ABS
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Heading Goes HereFUND FACTS
PROFILE Q1 2016
Christian Brothers Investment Services, Inc. (800)-592-8890 n info@cbisonline.com
CUIT Int. Diversified Bond Fund
Objective Current income and long-term capital appreciation
InvestmentsU.S. government, agency, corporate, and mortgage-backed securities; holdings are primarily investment grade (BBB to AAA, based on the three primary rating agencies)
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 full market cycle
BenchmarkBarclays Capital Aggregate Bond Index
Asset ManagersDodge & Cox, Inc. (Effective 1/1/95); Jennison Associates (Effective 9/2/02); Reams Asset Management Co. (Effective 7/1/08)
Total Expense Ratio/MinimumClass A: 0.53% / No MinimumClass B: 0.38% / $5M
PORTFOLIO ANALYSIS
STATISTICS FUND BENCHMARK
Average Maturity 8.64 7.79
Effective Duration 5.29 (Yrs) 5.47 (Yrs)
Average Quality AA- AA
Yield-to-Maturity 2.34% 2.16%
Current Yield 3.09% 3.00%
# of Securities 800 9,703
Fund Size $1,189.7MM
EFFECTIVE DURATION %
FUND BENCHMARK
< 1 Year 10.47 1.65
1-3 Years 29.05 32.80
3-5 Years 20.28 32.38
5-7 Years 10.48 11.12
7-10 Years 10.95 8.48
10-20 Years 14.28 13.57
> 20 Years 4.49 0.00
CREDIT QUALITY %
FUND BENCHMARK
AAA 61.54 71.52
AA 2.38 4.33
A 10.42 11.13
BBB 20.66 12.95
Below BBB 2.19 0.07
Cash 2.79 N/A
10%
5%
0%
CUIT Int. Divers. Bond B Barclays Aggregate Bond Index
FUND PERFORMANCE
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Int. Divers. Bond A 2.97 1.13 2.21 3.85 5.37
CUIT Int. Divers. Bond B 3.01 1.29 2.37 4.01 5.53
Barclays Aggregate Bond Index 3.03 1.96 2.50 3.78 4.90
CALENDAR YEAR RETURN 2015 2014 2013 2012 2011
CUIT Int. Divers. Bond A -0.13 5.65 -1.73 6.05 7.22
CUIT Int. Divers. Bond B -0.05 5.81 -1.51 6.21 7.39
Barclays Aggregate Bond Index 0.55 5.97 -2.02 4.22 7.84
Please see Important Information on Page 2
3 MO 1 YR 3 YR 5 YR 10 YR
RISK METRICS
CHARACTERISTICS FUND / 5 YR BENCHMARK / 5 YR
Sharpe Ratio 1.59 1.34
Information Ratio 0.75 0.0
Standard Deviation 2.72 2.77
Tracking Error 0.85 0.0
Downside Capture 87.70 100.00
Upside Capture 105.93 100.00
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CUIT Int. Diversified Bond Fund
All attribution is based on gross portfolio performance.
Active Weights
2.96%
Treasuries-2.13%
4.95%
Agency
-12.97%
MBS 1.60%
CMO0.00%
Municipals
2.79%
CashIndustrials
3.90%
Finance -0.56%
Utilies
-2.87%
Non-Corp. 0.78%
CMBS
1.58%
ABS
ALLOCATIONS %
Treasuries Agency Industrials Finance Utilities Non-Corp. MBS CMO CMBS ABS Municipals Cash
Fund 39.52 2.06 19.99 11.61 1.27 0.00 15.33 1.60 2.57 2.10 1.19 2.79
Benchmark 36.56 4.19 15.05 7.71 1.83 2.87 28.30 0.00 1.78 0.52 1.19 0.0
Important InformationBenchmark Index: Barclays Capital 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. 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.
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PROFILE Q1 2016
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CUIT Balanced Fund
Objective Long-term capital appreciation and current income
InvestmentsThe equity allocation is comprised primarily of large-cap U.S. companies diversified across industry sectors. Fixed-income instruments include corporate, U.S. government and agency bonds, and asset-backed and mortgage-backed securities.
StrategyThe equity portion blends undervalued companies with a modest exposure to growth through a core equity index allocation. The fixed-income portion leverages economic and fundamental research in an attempt to identify and capture inefficiencies across the yield curve.
Benchmark60% S&P 500 / 40% Barclays Capital Aggregate Bond Index
Asset ManagersFixed Income: Dodge & Cox, Inc. (Effective 4/1/91); Jennison Associates(Effective 9/2/02); Reams Asset Management Co. (Effective 7/1/08)
Equities: Dodge & Cox, Inc. – (Effective 4/1/91); RhumbLine Advisers – (Effective 4/1/02)
Total Expense Ratio / Minimum 0.88% / No Minimum
PORTFOLIO ANALYSIS
STATISTICS FUND S&P 500
Weighted Median Market Cap $54.5B $78.7B
Price/Book 2.1x 2.7x
Price/Earnings 17.9x 19.3x
Return on Equity 15.4% 18.0%
Dividend Yield 1.92% 2.14%
5-year Earnings Growth 8.20% 10.00%
Beta 1.01 1.00
10 Largest Holdings 24.17 8.05
# of Equity Securities 479 504
Turnover Rate 26.35 N/A
Fund Size $232.7MM
TOP TEN HOLDINGS
STATISTICS %
Microsoft Corporation 3.31
Wells Fargo & Company 2.92
Time Warner Cable Inc. 2.79
Capital One Financial Corporation 2.50
Bank of America Corporation 2.25
Comcast Corporation Class A 2.19
Time Warner Inc. 2.10
Charles Schwab Corporation 2.07
Alphabet Inc. Class C 2.04
Schlumberger NV 2.01
PORTFOLIO ANALYSIS: FIXED INCOME
STATISTICS FUND BCAGG
Average Maturity 8.65 7.79
Effective Duration 5.16 (Yrs) 5.47 (Yrs)
Average Quality AA- AA
Yield-to-Maturity 2.26% 2.16%
Current Yield 2.95% 3.00%
# of Securities 459 9,703
EFFECTIVE DURATION FUND BENCHMARK
< 1 Year 12.32 1.65
1–3 Years 29.84 32.80
3–5 Years 16.96 32.38
5–7 Years 10.90 11.12
7–10 Years 11.09 8.48
10-20 Years 14.49 13.57
> 20 Years 4.35 0.00
10%
5%
0%
CUIT Balanced Fund 60% S&P 40% BC Agg
FUND PERFORMANCE
% AVERAGE ANNUAL RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Balanced 1.09 -1.17 6.77 7.62 5.80
60% S&P 40% BC Agg 2.11 2.09 8.18 8.61 6.47
CALENDAR YEAR RETURN 2015 2014 2013 2012 2011
CUIT Balanced -2.33 8.80 21.29 14.59 0.71
60% S&P 40% BC Agg 1.28 10.62 17.56 11.31 4.69
Please see Important Information on Page 2
3 MO 1 YR 3 YR 5 YR 10 YR
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Important InformationBenchmark Index: 60% S&P 500/40% BC Aggregate eff. 1/2/03; 60% S&P 500/30% LB Aggregate/10% T Bill eff. 4/1/91; 60% LB Aggregate/40% S&P 500 in prior periods. 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. “S&P 500” is a registered trademark of McGraw-Hill Companies, Inc. The CUIT Balanced Fund is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing in the Fund. 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.
CUIT Balanced Fund
All attribution is based on gross portfolio performance.
Active Weights
3.95%
-2.00%
3.31% 3.26%
-0.44%-2.87%
-13.30%
1.53% 0.73% 1.75%
-0.31%
4.42%
TreasuriesMBS
CMOMunicipals
Cash
Agency
Industrials FinanceUtilities Non-Corp.
CMBS ABS
MARKET SECTOR ANALYSIS % – EQUITY
Consumer Discretionary
Consumer Staples Energy Financials Health Care Industrials
Information Technology Materials
Telecomm Service Utilities Cash
Fund 15.74 5.62 7.57 21.78 9.26 7.34 22.12 1.71 1.47 1.37 6.01
Benchmark 12.88 10.48 6.76 15.63 14.17 10.19 20.88 2.83 2.78 3.40 0.0
MARKET SECTOR ANALYSIS % – FIXED INCOME
Treasuries Agency Industrials Finance Utilities Non-Corp. MBS CMO CMBS ABS Municipals Cash
Fund 40.50 2.20 18.35 10.98 1.39 0.00 15.00 1.53 2.51 2.27 0.88 4.42
BC Agg 36.56 4.19 15.05 7.71 1.83 2.87 28.30 0.00 1.78 0.52 1.19 0.00
All attribution is based on gross portfolio performance.
Active Weights2.86%
-4.86%
0.81%
6.15%
-4.92%-2.85%
1.24%
-1.11% -1.31% -2.03%
6.01%
Consumer Discretionary
Information Technology
MaterialsCash
Consumer Staples
Energy Financials
Health Care IndustrialsTelecomm
Service Utilities
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Heading Goes HereFUND FACTS
PROFILE Q1 2016
Christian Brothers Investment Services, Inc. (800) 592-8890 n info@cbisonline.com
CUIT Core Equity Index Fund
Objective Long-term capital appreciation
InvestmentsCommon stocks of companies that make up the S&P 500, except those excluded as a result of CBIS’ screens (about 6% of the S&P 500's constituent companies – all unscreened companies are held at their index weight or higher)
StrategyTrack the S&P 500 and counter the impact of screens by overweighting select holdings so that the Fund's broadquantitative characteristics match those of the S&P 500 as closely as possible
BenchmarkS&P 500
Asset ManagersRhumbLine Advisers (Effective 1/1/95)
Total Expense Ratio / Minimum Class A: 0.38% / No MinimumClass B: 0.18% / $3M
PORTFOLIO ANALYSIS
STATISTICS FUND BENCHMARK
Weighted Median Market Cap $63.9B $78.7B
Price/Book 2.7x 2.7x
Price/Earnings 19.1x 19.3x
Return on Equity 18.8% 18.0%
Dividend Yield 2.01% 2.14%
5-year Earnings Growth 10.12% 10.00%
Beta 1.00 1.00
Active Share 14.37 N/A
10 Largest Holdings 18.37% 16.66%
# of Equity Securities 470 504
Turnover Rate 15.20 N/A
Fund Size $1,387.5MM
TOP TEN HOLDINGS
STATISTICS %
Apple Inc. 3.31
Microsoft Corporation 2.46
Exxon Mobil Corporation 1.97
Wells Fargo & Company 1.75
Facebook, Inc. Class A 1.66
Berkshire Hathaway Inc. Class B 1.59
AT&T Inc. 1.47
Alphabet Inc. Class C 1.40
Procter & Gamble Company 1.39
Coca-Cola Company 1.36
30%
20%
10%
0%
CUIT Core Equity B S&P 500
RISK METRICSCHARACTERISTICS FUND / 5 YR BENCHMARK / 5 YR
Sharpe Ratio 0.92 0.94
Information Ratio -0.25 N/A
Standard Deviation 12.33 12.22
Tracking Error 0.55 N/A
Downside Capture 101.30 100.00
Upside Capture 100.31 100.00
FUND PERFORMANCE
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Core Equity A 1.21 0.77 11.39 11.04 6.43
CUIT Core Equity B 1.26 0.98 11.61 11.26 6.62
S&P 500 1.35 1.78 11.82 11.58 7.01
CALENDAR YEAR RETURN 2015 2014 2013 2012 2011
CUIT Core Equity A 13.99 32.03 15.72 0.92 14.78
CUIT Core Equity B 14.19 32.31 15.95 1.13 15.01
S&P 500 13.69 32.39 16.00 2.11 15.07
Please see Important Information on Page 2
3 MO 1 YR 3 YR 5 YR 10 YR
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Important InformationBenchmark Index: S&P 500. 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. “S&P 500” is a registered trademark of McGraw-Hill Companies, Inc. The CUIT Core Equity Index Fund is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing in the Fund. 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.
CUIT Core Equity Index Fund
All attribution is based on gross portfolio performance.
Active Weights0.54% 0.76%
-0.04%0.16% 0.24%
1.13%
-1.24%
0.10%
-2.77%
0.17%0.93%
Consumer Discretionary
InformationTechnology
Materials CashConsumerStaples
Energy
Financials
Healthcare Industrials
TelecommService
Utilities
MARKET SECTOR ANALYSIS %
Consumer Discretionary
Consumer Staples Energy Financials Healthcare Industrials
Information Technology Materials
TelecommService Utilities Cash
Fund 13.42 11.24 6.72 16.77 11.41 8.94 21.04 2.93 2.94 3.64 0.93
Benchmark 12.88 10.48 6.76 15.63 14.17 10.19 20.88 2.83 2.78 3.40 0.0
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Heading Goes HereFUND FACTS
PROFILE Q1 2016
Christian Brothers Investment Services, Inc. (800) 592-8890 n info@cbisonline.com
CUIT Value Equity Fund
Objective Long-term capital appreciation
InvestmentsPrimarily the common stocks of U.S. companies, and the dollar denominated stocks of foreign companies, with market capitalizations greater than $1 billion
StrategyCombines complementary value strategies – one seeks undervalued securities using fundamental research, emphasizing industry-leaders with a medium to long-term investment horizon; the other seeks undervalued securities using a quantitative model to analyze asset values, earnings, and other factors
BenchmarkRussell 1000 Value Index
Asset ManagersDodge & Cox (Effective 2/1/00) AJO (Effective 4/1/02)
Total Expense Ratio / Minimum Class A: 1.04% / No MinimumClass B: 0.69% / $5M
TOP TEN HOLDINGS
STATISTICS %
Microsoft Corporation 3.42
Bank of America Corporation 2.87
JPMorgan Chase & Co. 2.55
Capital One Financial Corporation 2.19
Time Warner Cable Inc. 2.10
Wells Fargo & Company 2.03
FedEx Corporation 1.71
Charles Schwab Corporation 1.64
Comcast Corporation Class A 1.63
Time Warner Inc. 1.62
PORTFOLIO ANALYSIS
STATISTICS FUND BENCHMARK
Weighted Median Market Cap $36.5B $51.8B
Price/Book 1.6x 1.7x
Price/Earnings 14.2x 17.4x
Return on Equity 14.5% 9.8%
Dividend Yield 1.94% 2.63%
5-year Earnings Growth 9.39% 6.08%
Beta 1.04 1.00
Active Share 70.95 N/A
10 Largest Holdings 21.77% 9.15%
# of Equity Securities 173 684
Turnover Rate 39.68 N/A
Fund Size $393.7MM
RISK METRICSCHARACTERISTICS FUND / 5 YR BENCHMARK / 5 YR
Sharpe Ratio 0.72 0.80
Information Ratio -0.01 N/A
Standard Deviation 14.09 12.68
Tracking Error 2.77 N/A
Downside Capture 108.82 100.00
Upside Capture 107.26 100.00
Please see Important Information on Page 2
15%
10%
5%
0%
-5
-10
CUIT Value Equity B Russell 1000 Value Index
FUND PERFORMANCE
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Value Equity A -2.06 -5.57 8.34 9.11 4.92
CUIT Value Equity B -1.96 -5.23 8.72 9.50 5.29
Russell 1000 Value Index 1.64 -1.54 9.38 10.25 5.72
CALENDAR YEAR RETURN 2015 2014 2013 2012 2011
CUIT Value Equity A -3.58 9.57 38.32 19.15 -2.82
CUIT Value Equity B -3.26 9.97 38.80 19.54 -2.44
Russell 1000 Value Index -3.83 13.45 32.53 17.51 0.39
3 MO
1 YR
3 YR 5 YR 10 YR
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Important InformationBenchmark 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. 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.
CUIT Value Equity Fund
All attribution is based on gross portfolio performance.
Active Weights
6.95%
-2.54% -2.50%-1.49% -1.21%
-1.73%
6.97%
-0.78% -1.19%
-3.52%
1.06%
Consumer Discretionary
InformationTechnology
Materials
Cash
ConsumerStaples Energy Financials Healthcare Industrials
TelecommService Utilities
MARKET SECTOR ANALYSIS %
Consumer Discretionary
Consumer Staples Energy Financials Healthcare Industrials
Information Technology Materials
TelecommService Utilities Cash
Fund 12.26 4.82 10.24 26.73 10.45 8.65 18.57 2.05 1.66 3.51 1.06
Benchmark 5.31 7.36 12.74 28.23 11.66 10.39 11.60 2.83 2.85 7.03 0.0
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Heading Goes HereFUND FACTS
PROFILE Q1 2016
Christian Brothers Investment Services, Inc. (800) 592-8890 n info@cbisonline.com
CUIT Growth Fund
Objective Long-term capital appreciation
InvestmentsCommon stocks of U.S. companies and the dollar-denominated stocks of foreign companies with market capitalizations above $500 million
StrategyFocus on mid- and large-cap stocks that exhibit sustainable, above- average earnings growth; blends a quantitative manager that seeks to identify key investment risks and capture alpha through dynamic modeling with a bottom-up fundamental manager to deliver a portfolio with balanced growth, valuation, and quality attributes
BenchmarkRussell 1000 Growth Index
Asset ManagersWellington Management (Effective 12/31/04)Los Angeles Capital Management (Effective 4/1/09)
Total Expense Ratio / Minimum Class A: 1.16% / No MinimumClass B: 0.86% / $5M
15%
10%
5%
0%
CUIT Growth B Russell 1000 Growth Index
RISK METRICSCHARACTERISTICS FUND / 5 YR BENCHMARK / 5 YR
Sharpe Ratio 0.92 0.98
Information Ratio -0.13 N/A
Standard Deviation 13.07 12.60
Tracking Error 1.91 N/A
Downside Capture 105.30 100.00
Upside Capture 102.66 100.00
FUND PERFORMANCE
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Growth A 0.52 2.82 12.90 10.82 6.32
CUIT Growth B 0.60 3.16 13.27 11.17 6.65
Russell 1000 Growth Index 0.74 2.52 13.61 12.38 8.28
CALENDAR YEAR RETURN 2015 2014 2013 2012 2011
CUIT Growth A 5.29 11.65 32.92 14.13 -1.92
CUIT Growth B 5.63 12.06 33.31 14.48 -1.62
Russell 1000 Growth Index 5.67 13.05 33.49 15.26 2.64
Please see Important Information on Page 2
3 MO 1 YR 3 YR 5 YR 10 YR
PORTFOLIO ANALYSIS
STATISTICS FUND BENCHMARK
Weighted Median Market Cap $68.9B $69.2B
Price/Book 4.8x 5.3x
Price/Earnings 20.9x 21.5x
Return on Equity 27.2% 24.7%
Dividend Yield 1.66% 1.57%
5-year Earnings Growth 13.13% 13.96%
Beta 0.94 1.00
Active Share 43.94 N/A
10 Largest Holdings 27.48% 24.22%
# of Equity Securities 244 635
Turnover Rate 52.56 N/A
Fund Size $309.6MM
TOP TEN HOLDINGS
STATISTICS %
Apple Inc. 5.74
Alphabet Inc. 3.20
Microsoft Corporation 2.75
Verizon Communications Inc. 2.66
Home Depot, Inc. 2.59
PepsiCo, Inc. 2.37
Visa Inc. Class A 2.14
Facebook, Inc. Class A 2.04
Comcast Corporation Class A 2.00
Amazon.com, Inc. 1.99
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Important InformationBenchmark Index: Russell 1000 Growth Index eff. June 1, 2000; prior to this date, historical returns reflect 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. 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.
CUIT Growth Fund
All attribution is based on gross portfolio performance.
Active Weights
-1.24%
1.82%
0.21%0.87%
-3.96% -3.85%
3.02%
0.16%0.95% 0.53%
1.50%Consumer
DiscretionaryInformationTechnology
Materials CashConsumerStaples
Energy Financials
Healthcare Industrials
TelecommService
Utilities
MARKET SECTOR ANALYSIS %
Consumer Discretionary
Consumer Staples Energy Financials Healthcare Industrials
Information Technology Materials
TelecommService Utilities Cash
Fund 20.11 13.55 0.71 6.48 11.61 7.22 31.26 3.66 3.33 0.58 1.50
Benchmark 21.35 11.73 0.50 5.61 15.57 11.07 28.24 3.50 2.38 0.05 0.0
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Heading Goes HereFUND FACTS
PROFILE Q1 2016
Christian Brothers Investment Services, Inc. (800) 592-8890 n info@cbisonline.com
CUIT Small Cap Equity Index Fund
Objective Long-term capital appreciation by attempting to replicate the performance of the Russell 2000 Index, a commonly used index of domestic small-capitaliza-tion stocks
InvestmentsCommon stocks of companies that generally comprise the Russell 2000 Index
StrategyClosely track the benchmark Index, while seeking replacements for screened stocks among companies with similar market capitalizations in the same or a related industry
BenchmarkRussell 2000 Index
Asset ManagersRhumbLine Advisers (Effective 1/07)
Total Expense Ratio / Minimum Class A: 0.54% / No MinimumClass B: 0.24% / $3M
10%
5%
0%
5
10
CUIT Small Cap B Russell 2000 Value Index
RISK METRICSCHARACTERISTICS FUND / 5 YR BENCHMARK / 5 YR
Sharpe Ratio 0.43 0.43
Information Ratio -0.01 N/A
Standard Deviation 16.58 16.68
Tracking Error 0.19 N/A
Downside Capture 99.45 100.00
Upside Capture 99.34 100.00
FUND PERFORMANCE
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Small Cap Equity Index A -1.66 -10.06 6.37 6.61 –
CUIT Small Cap Equity Index B -1.56 -9.83 6.68 6.91 –
Russell 2000 Index -1.52 -9.76 6.84 7.20
CALENDAR YEAR RETURN 2015 2014 2013 2012 2011
CUIT Small Cap Equity Index A -4.75 4.46 38.05 15.42 -4.83
CUIT Small Cap Equity Index B -4.53 4.81 38.38 15.82 -4.58
Russell 2000 Index -4.41 4.90 38.82 16.35 -4.18
Please see Important Information on Page 2
3 MO
1 YR
3 YR 5 YR 10 YR
PORTFOLIO ANALYSIS
STATISTICS FUND BENCHMARK
Weighted Median Market Cap $1.7B $1.7B
Price/Book 1.9x 1.9x
Price/Earnings 19.2x 19.2x
Return on Equity 7.3% 7.3%
Dividend Yield 1.58% 1.59%
5-year Earnings Growth 10.30% 10.14%
Beta 1.00 1.00
Active Share 2.35 N/A
10 Largest Holdings 3.07% 2.86%
# of Equity Securities 1,952 1,959
Turnover Rate 18.82 N/A
Fund Size $312.1MM
TOP TEN HOLDINGS
STATISTICS %
STERIS Plc 0.37
CubeSmart 0.34
Core-Mark Holding Company, Inc. 0.32
Vail Resorts, Inc. 0.30
West Pharmaceutical Services, Inc. 0.30
TreeHouse Foods, Inc. 0.30
Piedmont Natural Gas Company, Inc. 0.29
MarketAxess Holdings Inc. 0.29
Sovran Self Storage, Inc. 0.28
Highwoods Properties, Inc. 0.27
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Important InformationBenchmark Index: 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 Russell 2000 Index is a trademark/servicemark, and Russell is a trademark, of the Frank Russell Company. The Small Cap Index Fund is not sponsored, endorsed, sold or promoted by the Frank Russell Company, and the Frank Russell Company makes no representation regarding the advisability of investing in the Small Cap Index Fund. 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.
CUIT Small Cap Equity Index Fund
All attribution is based on gross portfolio performance.
Active Weights
0.21%
-0.20%
-0.04%
0.02%
-0.06%
-0.01% -0.01%-0.01%
0.18%
Consumer Discretionary
InformationTechnology Materials
Cash
ConsumerStaples Energy
FinancialsHealthcare Industrials
TelecommService Utilities
MARKET SECTOR ANALYSIS %
Consumer Discretionary
Consumer Staples Energy Financials Healthcare Industrials
Information Technology Materials
TelecommService Utilities Cash
Fund 14.23 3.43 2.51 26.10 13.66 12.95 17.97 3.85 0.88 4.24 0.18
Benchmark 14.01 3.63 2.55 26.08 13.74 12.96 18.04 3.86 0.88 4.25 0.00
-0.08%
0.00%
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Heading Goes HereFUND FACTS
PROFILE Q1 2016
Christian Brothers Investment Services, Inc. (800) 592-8890 n info@cbisonline.com
CUIT International Equity Fund
Objective Long-term capital appreciation
InvestmentsBroad mix of mostly large and mid cap equities chosen from a universe that incorporates 22 Developed Market countries and 23 Emerging Market countries; up to 30% of the portfolio may be invested in emerging markets
Strategy Combines three managers with complementary growth and value oriented investment processes to produce highly competitive risk adjusted returns.
BenchmarkMSCI All Country World Index ex-U.S.
Asset ManagersCauseway Capital (Effective 2/1/05) Principal Global (Effective 5/18/07)WCM (Effective 9/23/15)
Total Expense Ratio / Minimum Class A: 1.43% / No minimumClass B: 0.99% / $5M
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT International Equity A -1.57 -7.00 2.45 1.85 1.47
CUIT International Equity B -1.47 -6.64 2.86 2.26 1.88
MSCI ACWI ex-U.S. -0.26 -8.63 2.40 2.59 2.18
CALENDAR YEAR RETURN 2015 2014 2013 2012 2011
CUIT International Equity A -2.82 -5.11 22.03 19.16 -13.93
CUIT International Equity B -2.45 -4.72 22.49 19.67 -13.58
MSCI ACWI ex-U.S. -3.81 -4.49 23.30 17.90 -11.73
The Fund’s benchmark was changed to MSCI ACWI ex-U.S. effective June 1, 2015. The benchmark performance shown in this presentation reflects the linked performance of the prior benchmark (MSCI EAFE) through May 31, 2015 and MSCI ACWI ex-U.S. after June 1, 2015.
RISK METRICSCHARACTERISTICS FUND / 5 YR BENCHMARK / 5 YR
Sharpe Ratio 0.21 0.16
Information Ratio 0.29 N/A
Standard Deviation 15.54 15.58
Tracking Error 2.75 N/A
Downside Capture 94.41 100.00
Upside Capture 96.87 100.00
GEOGRAPHIC DISTRIBUTIONINT'L INDEX
Europe 49.16 46.47
Pacific Basin 15.90 24.69
Emerging Markets 22.22 21.75
Other 12.72 7.09
10%
5%
0%
CUIT International Equity B MSCI ACWI ex-U.S.
FUND PERFORMANCE
3 MO1 YR
3 YR 5 YR 10 YR
PORTFOLIO ANALYSIS
STATISTICS FUND BENCHMARK
Weighted Median Market Cap $21.6B $27.7B
Price/Book 1.1x 1.2x
Price/Earnings 16.2x 14.5x
Return on Equity 18.1% 14.4%
Dividend Yield 2.74% 3.44%
5-year Earnings Growth 10.44% 6.94%
Beta 0.90 1.00
Active Share 76.68 N/A
10 Largest Holdings 17.91% 3.42%
# of Equity Securities 349 1,856
Turnover Rate 107.89 N/A
Fund Size $560.3MM
TOP TEN HOLDINGS
STATISTICS %
Taiwan Semiconductor Mfg. Co., Ltd. ADR 3.08
Nestle S.A. 2.29
Tencent Holdings Ltd. 2.00
KDDI Corporation 1.71
Chubb Limited 1.65
Chr. Hansen Holding A/S 1.49
Canadian Pacific Railway Limited 1.44
Compass Group PLC 1.44
Akzo Nobel N.V. 1.41
ICON Plc 1.40
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Important InformationBenchmark Index: The Fund’s benchmark was changed to MSCI All Country World Index (ACWI) ex-U.S. effective June 1, 2015. The benchmark performance shown reflects the linked performance of the prior benchmark (MSCI EAFE) through May 31, 2015 and MSCI ACWI ex-U.S. from June 1-December 31, 2015. Total Estimated Expense Ratio for Class B reflects the partial waiver of the Investment Management Fee so total expenses do not exceed 99 bps. 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. 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.
CUIT International Equity Fund
MARKET SECTOR ANALYSIS %
Consumer Discretionary
Consumer Staples Energy Financials Healthcare Industrials
Information Technology Materials
TelecommService Utilities Cash
Fund 13.95 10.60 4.94 17.19 7.42 14.17 14.95 6.30 4.49 2.97 3.04
Benchmark 12.00 11.21 6.40 25.76 8.84 11.51 8.45 6.94 5.33 3.58 0.0
All attribution is based on gross portfolio performance.
Active Weights
1.95%
-0.61% -0.64%-1.46%
-8.57%
-1.43%
2.66%
6.50%
-0.84% -0.60%
3.04%
Consumer Discretionary
InformationTechnology
Materials
Cash
ConsumerStaples Energy Financials Healthcare
Industrials
TelecommService Utilities
Investment Portfolio Review 1Q 2016
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CBIS’ offers a disciplined and comprehensive approach to Catholic Responsible Investing
} CBIS pioneered Catholic responsible investing and has more than 30 years of experience applying Catholic social teaching to the investing process.
} While socially responsible investing is often equated with stock screens, a truly effective CRI program requires that we act as responsible owners of companies to bring about a more just society. Our approach to Catholic Socially Responsible Investing emphasizes direct engagement with companies to help them be better corporate citizens; while also incorporating screens.
} CBIS’ program of Catholic Responsible Investing enables Catholic institutions to align their investments with their beliefs and effect real change in corporate activities with respect to human rights, the environment, and corporate governance.
} As an institutional investment firm, we believe that by encouraging strong corporate environmental, social and governance, we are supporting the growth performance of shareholder value.
TEL: 800-592-8890 EMAIL: info@cbisonline.com
PO Box 9683 Providence, RI 020940-9683
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
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TEL: (39) 06 66 01 72 18 FAX: (39) 06 663 88 21
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TEL: 877-550-2247 312-803-6440 FAX: 312-803-6441
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TEL: 800-592-8890 212-490-0800 FAX: 212-490-6092
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TEL: 800-754-8177 415-623-2080 FAX: 415-623-2070
CBIS REGIONAL OFFICES
Important Disclosures*Data not available.
+ The CUIT Money Market Fund changed its investment approach from overnight repurchase agreements, to actively managed effective 8/1/01.
**Benchmark Index: 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.
++ “S&P 500” is a registered trademark of McGraw-Hill Companies, Inc. (“McGraw-Hill”). The CUIT Core Equity Index Fund is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing in the fund.
*** Benchmark Index: 60% S&P 500/40% BC Aggregate effective 1/2/03; 60% S&P 500/30% LB Aggregate/10% T Bill effective 4/1/91; 60% LB Aggregate/40% S&P 500 in prior periods.
**** Benchmark Index: Russell 1000 Growth Index effective June 1, 2000; prior to this date, historical returns reflect Russell Mid-Cap Growth Index.‡ Effective June 1, 2015, the benchmark for the International Fund has been 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.
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. Past performance is not indicative of future performance.
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. 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.
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