Christian Brothers Investment Services, Inc. n [email protected] PAGE 1
4Q 2017
Investment Portfolio Review
LEADING CATHOLIC INSTITUTIONAL
INVESTMENT MANAGER
} Over $7 billion in assets under management
} Exclusively serve Catholic institutions
} Founded and owned by the De La Salle Christian Brothers
PIONEERED CATHOLIC RESPONSIBLE
INVESTINGSM
} Thoughtful and disciplined Catholic investment screens
} Encourage companies to improve policies and practices through active ownership
DIVERSIFIED INVESTMENT PROGRAMS
} Manager of managers } Institutional pooled funds
and separate accounts
UNIFY FAITH AND FINANCE
} Align investments with mission
DIVERSE RANGE OF NEEDS
} Portfolio services for a range of institutions
} Single- and multi-product relationships with institutions and their consultants
GLOBAL INVESTOR BASE
} Religious Institutes } Dioceses } Education } Healthcare
CBIS helps Catholic organizations achieve their financial goals through the socially responsible management of their investments.
BY PRODUCT TYPE ($MILLION)
BY CUIT TYPE ($MILLION)
Separate Accounts $663Global Funds PLC (UCITS) $641CUIT Funds $6,143
Money MarketOpportunistic BondBalancedCore IndexValue
Short bondInt. Diversified BondSmall capGrowthInternational
CBIS Asset Review
$7.4 BILLION IN TOTAL ASSETS
UNDER MANAGEMENT (12/31/17)
1%6%
20%
5%6%
5%6%
14%
31%
6%
9%9%
82%
Key Highlights:Market Overviewpage 2
Investment Program Offeringspage 8
CUIT Fund’s Performancepage 9
CUIT Fund Reportspage 10
Investment Portfolio Review 4Q 2017
Christian Brothers Investment Services, Inc. n [email protected] PAGE 2
Christian Brothers Investment Services, Inc. n [email protected] PAGE 1
MARKET PERSPECTIVE 4Q 2017
Another Very Strong Year
The year ended on a remarkably strong note, with fourth quarter
performance echoing the same story we have been telling for several
quarters: Equities performed well across the globe, and large growth stocks
dominated value and small cap, as we continue one of the longest periods
of growth outperforming value on record.
2017 CAPITAL MARKETS REVIEW
Strong Global Performance
U.S. Equities Performance
Fixed Income Performance
Synchronized Economic Growth
Moderate Inflation
Growth Continues to Dominate Value
Bond vs. Equity Valuations
MARKET MUSINGS
Impact of Tax Reform
Value Regains Dominance Over Growth
Inflation
Separatist Movement in Spain
Saudi Arabia
Israel and Palestine
Christian Brothers Investment Services, Inc. n [email protected] PAGE 3
Market Perspective 4Q 2017 JANUARY 2018
Christian Brothers Investment Services, Inc. n [email protected] PAGE 2
2017 Capital Markets Review
U.S. EQUITIES PERFORMANCE
• Equity returns exceeded
expectations across the board
in 2017.
• While a weaker dollar boosted
non-U.S. stock performance for
U.S. investors, local currency
market returns were also
competitive with U.S. markets.
• Other market trends
remained intact, with growth
outperforming value and large
cap outperforming small cap;
these remain headwinds for
active manager performance.
• Market commentators
highlighted the low level of
equity volatility, but in fact we
did see volatility below the
surface.
• For the year, IT led the
U.S. market while energy
and telecom lagged by
approximately 40%.
Market Performance: 3 Month
Market Performance: 3 Month
Market Performance: 12 Month
Market Performance: 12 Month
STRONG GLOBAL PERFORMANCE
For the year, Information Technology led the U.S. market while Energy and Telecom lagged by approximately 40%.
Investment Portfolio Review 4Q 2017
Christian Brothers Investment Services, Inc. n [email protected] PAGE 4
Market Perspective 4Q 2017 JANUARY 2018
Christian Brothers Investment Services, Inc. n [email protected] PAGE 3
FIXED INCOME PERFORMANCE
• The fixed income yield curve
flattened as a result of Federal
Reserve tightening.
• The long end of the Treasury
curve was supported throughout
2017 by modest increases in
inflation numbers.
• Concerns regarding higher yields
and increased market volatility
dampened the performance of
the mortgage sector.
Treasury Yield Curve
Market Performance: 3 Month Market Performance: 12 Month
Reflecting the strength of the equity markets, corporate bonds—both investment grade and high yield—generated significant outperformance versus Treasuries on a duration-adjusted basis.
Investment Portfolio Review 4Q 2017
Christian Brothers Investment Services, Inc. n [email protected] PAGE 5
Market Perspective 4Q 2017 JANUARY 2018
Christian Brothers Investment Services, Inc. n [email protected] PAGE 4
SYNCHRONIZED ECONOMIC GROWTH
MODERATE INFLATION
• The world is beginning to show
signs of synchronized growth
rates.
• While we are nowhere near
an inflationary spiral, inflation
numbers have increased
globally and are also becoming
synchronized.
• Fears of deflation have subsided,
setting the stage for continued
Federal Reserve interest
rate hikes and a reduction in
quantitative easing in both
Europe and Japan.
U.S., Eurozone, and Japan: Economic Growth
U.S., Eurozone, and Japan: Inflation
This trend is positive for corporate earnings, and U.S. companies are expected to post higher earnings growth as a result of tax reform.
Source: BLS, Eurostat, OECD, via Federal Reserve Economic Data, as of 12/31/2017; www.myf.red/g/hkal
Source: BEA, Eurostat, JP. Cabinet Office , via Federal Reserve Economic Data, as of 12/31/2017; www.myf.red/g/hka0
Investment Portfolio Review 4Q 2017
Christian Brothers Investment Services, Inc. n [email protected] PAGE 6
Market Perspective 4Q 2017 JANUARY 2018
Christian Brothers Investment Services, Inc. n [email protected] PAGE 5
BOND VS. EQUITY VALUATIONS
• Value investing is anticipated
to become the new vehicle for
“defensive investing,” replacing
the bond substitutes of high
dividend investing.
• The sustained market rally
has stretched equity price-to-
earnings ratios relative to history.
• We must be prepared for normal
market corrections (10-20%), yet
relative equity valuations do not
portend a long bear market.
• Bond P/E ratios tend to follow
equities; equities tend to trade
at higher P/E values due to
potential earnings growth.
• The Fed’s reaction to the
NASDAQ and housing crashes
changed that relationship; bonds
now trade at a clear valuation
premium to equities.
• Until this market distortion ends,
equities could trade at P/E levels
historically considered rich.
• Higher earnings expectations
support current valuations.
GROWTH CONTINUES TO DOMINATE VALUE
Growth has outperformed value for one of the longest periods on record.
Bond vs. Equity P/E Ratio
5 Year Rolling: Value Excess Growth vs. Russell 1000
Source: Bloomberg as of 12/31/2017; www.Bloomberg.com
Source: Bloomberg as of 12/31/2017; www.Bloomberg.com
Investment Portfolio Review 4Q 2017
Market Perspective 4Q 2017 JANUARY 2018
Christian Brothers Investment Services, Inc. n [email protected] PAGE 6
Value Regains Dominance Over Growth – At some point, the trend of growth outperforming value will reverse. My concern is that when this occurs, it will be in the face of a market downturn. Should value investors be careful what they wish for?
Inflation – After close to two decades of dormancy, without a meaningful uptick for close to 40 years, will inflation become a concern? After all, inflation in Japan is starting to show positive readings.
Separatist Movement in Spain – Will they or won’t they? And what will be the impact on the eurozone, both from an economic standpoint (probably little) and in terms of the euro itself? How many challenges can the currency survive?
Saudi Arabia – Lower oil prices are beginning to take a toll. Will there be political and social unrest in the kingdom as the government seeks to increase non-oil revenue? A shift in the balance of power in the Middle East bears watching.
Israel and Palestine – Despite predictions to the contrary, perhaps the recognition of Jerusalem as the capital of Israel will indeed bring about a peaceful resolution with Palestine. We hope, but remain vigilant.
In closing, as corporate earnings continue to improve, the valuation of bonds leaves stocks relatively attractive despite Fed tightening. The base case remains: modest returns from equities driven by increased earnings. Yet the old adage remains: beware the bus you don’t see.
Impact of Tax Reform – It came down to the wire, but Congress passed a tax package before year-end. There is no doubt the reduction in corporate tax rates is a welcome development, bringing the taxation of corporate profits in line with other countries. This change can not only make U.S. companies more competitive but—more importantly—remove some of the incentives for them to pursue non-economic activities, such as tax inversions and issuing U.S. debt while maintaining large offshore cash balances.
However, for all the positives of corporate tax reform, the little voice inside is whispering: beware the unintended consequences. The debate surrounding this tax bill was relatively benign compared to previous legislation. Lingering questions:
• What is lurking behind the details that may provide perverse incentives?
• Will the nascent housing recovery collapse?
• How will high-tax states, which are beleaguered by unfunded pension systems and stressed budgets, fare if we see the migration of productive workers to more “tax-friendly” jurisdictions?
Unfortunately, the tax bill made little progress toward simplification. The purpose of federal taxation is to provide revenue for the U.S. government, yet we are left with potentially more inefficient tax-driven behavior as individuals and corporations wade through the implications of this legislation.
John Kenneth Galbraith purportedly said something along the lines of “the only purpose of economic forecasting is to make astrology look respectable.” Rather than contributing to astrology’s respectability, I will avoid economic forecasts and will attempt to outline some of the risks I see impacting markets in 2018.
Important Information: This 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.
Market Musings
John W. Geissinger, CFA
CIO, CBIS
Christian Brothers Investment Services, Inc. n [email protected] PAGE 7
Investment Portfolio Review 4Q 2017
Christian Brothers Investment Services, Inc. n [email protected] 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 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, Jennison, Reams
CUIT Opportunistic Bond Bloomberg Barclays 1-5 Year US Gov’t Credit Index Longfellow and Reams
CUIT Balanced 60% S&P 500 / 40% BBAgg Dodge & Cox, Jennison, Reams, RhumbLine
CUIT Core Equity Index S&P 500 Index 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
UCITS FUND BENCHMARK MANAGER(S)
European Short-Term Government Bond Bloomberg Barclays Euro Gov’t Bond Index 1-3 Year ARCA
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: 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 4Q 2017
Christian Brothers Investment Services, Inc. n [email protected] PAGE 9
Please review the Important Disclosures on page 31 for further information.
CUIT Funds Performance (December 31, 2017)
INVESTMENT OPTION/BENCHMARK1
MONTH3
MONTHS1
YEAR3
YEARS5
YEARS10
YEARSSINCE
INCEPTIONINCEPTION
DATE
CUIT Money Market Fund 0.10 0.29 0.93 0.42 0.26 0.36 3.25 Jan 1985
Bloomberg Barclays U.S. Short T-Bills (1-3 M) Index ± 0.09 0.26 0.81 0.40 0.26 0.39 3.68
CUIT Short Bond Fund 0.09 0.09 1.71 1.50 1.34 2.46 5.19 Jan 1985
Bloomberg Barclays 1-3 Year Treasury Index** 0.01 (0.28) 0.42 0.61 0.56 1.44 4.99
CUIT Opportunistic Bond Fund Class A 0.05 (0.15) 1.63 1.71 * * 1.31 May 2013
CUIT Opportunistic Bond Fund Class B 0.06 (0.01) 1.78 1.90 * * 1.45 May 2013
Bloomberg Barclays 1-5 Year US Government/Credit Index 0.03 (0.30) 1.27 1.27 * * 1.06
CUIT Intermediate Diversified Bond Fund Class A 0.47 0.32 3.38 2.24 2.10 4.61 5.75 Jan 1995
CUIT Intermediate Diversified Bond Fund Class B 0.49 0.36 3.54 2.38 2.26 4.77 4.66 Jan 2003
Bloomberg Barclays Aggregate Bond Index 0.46 0.39 3.54 2.24 2.10 4.01 5.68 / 4.15
CUIT Balanced Fund 1.66 4.75 13.08 7.36 10.30 6.92 8.96 Dec 1983
60% S&P 500 / 40% BB Agg *** 0.85 4.11 14.25 7.89 10.33 7.08 9.65
CUIT Value Equity Fund Class A 1.90 7.47 16.53 8.60 14.18 6.99 9.87 Jan 1995
CUIT Value Equity Fund Class B 1.94 7.58 16.96 8.98 14.59 7.37 10.09 Jan 2003
Russell 1000 Value Index 1.46 5.33 13.66 8.65 14.04 7.10 10.27 / 9.55
CUIT Core Equity Index Fund Class A 1.12 7.09 22.64 11.02 15.55 8.04 9.82 Jan 1995
CUIT Core Equity Index Fund Class B 1.13 7.14 22.87 11.25 15.78 8.25 5.89 Mar 2000
S&P 500 Index 1.11 6.64 21.83 11.41 15.79 8.50 10.06 / 5.87
CUIT Growth Fund Class A 0.56 6.34 25.38 11.63 15.60 7.71 8.72 Jan 1991
CUIT Growth Fund Class B 0.59 6.44 25.77 11.98 15.97 8.05 9.15 Jan 2003
Russell 1000 Growth Index **** 0.78 7.86 30.21 13.79 17.33 10.00 9.90 / 10.70
CUIT Small Capitalization Equity Index Fund Class A (0.55) 3.65 14.43 9.54 13.64 8.24 7.24 Jan 2007
CUIT Small Capitalization Equity Index Fund Class B (0.54) 3.73 14.81 9.86 13.97 8.56 7.54 Jan 2007
S&P SmallCap 600 Index § (0.52) 3.86 15.22 10.14 14.24 8.77 7.78
CUIT International Equity Fund Class A 1.74 5.49 30.47 9.08 8.48 2.12 6.32 Jan 1995
CUIT International Equity Fund Class B 1.76 5.61 31.04 9.52 8.92 2.53 2.76 Mar 2000
MSCI ACWI-ex U.S. ‡ 2.27 5.06 27.77 8.88 8.73 2.59 5.87 / 4.19
Investment Portfolio Review 4Q 2017
Christian Brothers Investment Services, Inc. n [email protected] PAGE 10
FUND FACTS
PROFILE Q4 2017
Christian Brothers Investment Services, Inc. (800) 592-8890 n [email protected]
CUIT Money Market Fund
Objective Preserve capital, provide current income; and maintain liquidity
InvestmentsHigh quality, short-term, fixed-income obligations
StrategyLiquidity will be maintained by investing in highly rated securities with short maturities and by constraining the average portfolio maturity to 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 8/1/01)
Total Expense Ratio / Minimum 0.32% / No Minimum
Fund Features Commingled fund exclusive for tax-exempt Catholic institutions
Daily NAV and daily liquidity
Dividends Distributed Monthly
MATURITY DISTRIBUTION %
FUND
0 to 7 Days 25.8
8 to 29 Days 38.5
30 to 59 Days 10.3
60 to 89 Days 12.0
90 to 179 Days 7.9
180 and Over 5.4
PORTFOLIO ANALYSIS
STATISTICS FUND BENCHMARK
Effective Duration (years) 0.1 Yrs 0.1 Yrs
Average Quality A-1 A-1+
Yield-to-Maturity 1.4% 1.2%
Fund Size $63.6MM
CREDIT QUALITY %
FUND BENCHMARK
A-1+ or higher 76.8 100.0
A-1 21.3 0.0
Less than A-1 1.9 0.0
1.4%
1.0%
0.90%
0.80%
0.70%
0.60%
0.50%
0.40%
0.30%
1.0%0.20%
0.6%0.10%
0.2%0.0%
CUIT Money Market A BB U.S. Short T-Bills (1-3 M) Index
FUND PERFORMANCE
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Money Market 0.29 0.93 0.42 0.26 0.36
Bloomberg Barclays U.S. Short T-Bills (1-3 M) Index 0.26 0.81 0.40 0.26 0.39
CALENDAR YEAR RETURN 2017 2016 2015 2014 2013
CUIT Money Market 0.93 0.31 0.02 0.05 0.01
Bloomberg Barclays U.S. Short T-Bills (1-3 M) Index 0.81 0.33 0.05 0.04 0.07
Please see Important Information on Page 2
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.
3 MO 1 YR 3 YR 5 YR 10 YR
Christian Brothers Investment Services, Inc. n [email protected] PAGE 11Christian Brothers Investment Services, Inc. n [email protected] PAGE 2 | CB -FFS-000-0000
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.
CUIT Money Market Fund
ALLOCATIONS %
US Government & Agencies
Certificates of Deposit
Repurchase Agreements
Commercial Paper Corporate
Asset-BackedSecurities
Fund 27.2 5.4 3.5 13.5 21.4 29.0
BENCHMARK 100.0 0.0 0.0 0.0 0.0 0.0
Christian Brothers Investment Services, Inc. n [email protected] PAGE 12
FUND FACTS
PROFILE Q4 2017
Christian Brothers Investment Services, Inc. (800) 592-8890 n [email protected]
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
BenchmarkBloomberg Barclays 1–3 Year Treasury Index
Asset ManagersLongfellow Investment Management Co. (Effective 7/1/08)
Total Expense Ratio / Minimum 0.34% / No Minimum
Fund Features Commingled fund exclusive for tax-exempt Catholic institutions
Daily NAV and daily liquidity
Dividends Distributed Monthly
PORTFOLIO ANALYSIS
STATISTICS FUND BENCHMARK
Average Maturity (years) 2.2 Yrs 1.9 Yrs
Effective Duration (years) 1.7 Yrs 1.9 Yrs
Average Quality AA- AAA
Yield-to-Maturity 2.8% 1.9%
Current Yield 3.0% 1.7%
# of Securities 191 95
Fund Size $383.8MM
EFFECTIVE DURATION %
FUND BENCHMARK
< 1 Year 32.8 0.0
1 - 3 Years 49.6 100.0
3 - 5 Years 15.4 0.0
5 - 7 Years 1.9 0.0
7 - 10 Years 0.3 0.0
10 - 20 Years 0.0 0.0
> 20 Years 0.0 0.0
CREDIT QUALITY %
FUND BENCHMARK
AAA 53.5 100.0
AA 8.0 0
A 14.4 0
BBB 18.2 0
Below BBB 4.2 0
Cash 1.6 0
3%
2%
1%
0%
CUIT Short Bond A BB 1-3 Year Treasury Index
FUND PERFORMANCE
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Short Bond 0.09 1.71 1.50 1.34 2.46
Bloomberg Barclays 1-3 Year Treasury Index -0.28 0.42 0.61 0.56 1.44
CALENDAR YEAR RETURN 2017 2016 2015 2014 2013
CUIT Short Bond 1.71 1.99 0.81 1.37 0.84
Bloomberg Barclays 1-3 Year Treasury Index 0.42 0.86 0.54 0.62 0.36
Please see Important Information on Page 2 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.
3 MO 1 YR 3 YR 5 YR 10 YR
RISK METRICS
CHARACTERISTICS FUND / 5 YR BENCHMARK / 5 YR
Sharpe Ratio 1.9 0.5
Information Ratio 2.2 N/A
Standard Deviation 0.7 0.7
Tracking Error 0.5 N/A
Upside Capture 159.5 100.0
Downside Capture 33.4 100.0
Christian Brothers Investment Services, Inc. n [email protected] PAGE 13Christian Brothers Investment Services, Inc. n [email protected] PAGE 2 | CB -FFS-000-0000
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.
CUIT Short Bond Fund
ALLOCATIONS %
Treasuries Agency Industrials Finance Utilities MBS CMO CMBS ABS Municipals Cash
Fund 21.0 6.4 15.1 18.7 1.8 1.7 1.4 11.8 17.2 3.3 1.6
Benchmark 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Christian Brothers Investment Services, Inc. n [email protected] PAGE 14
FUND FACTS
PROFILE Q4 2017
Christian Brothers Investment Services, Inc. (800) 592-8890 n [email protected]
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
BenchmarkBloomberg Barclays 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
Fund Features Commingled fund exclusive for tax-exempt Catholic institutions
Daily NAV and daily liquidity
Dividends Distributed Monthly
PORTFOLIO ANALYSIS
STATISTICS FUND BENCHMARK
Average Maturity (years) 2.9 Yrs 2.8 Yrs
Effective Duration (years) 2.4 Yrs 2.7 Yrs
Average Quality A+ AA
Yield-to-Maturity 2.7% 2.2%
Current Yield 3.0% 2.2%
# of Securities 364 2,829
Fund Size $470.7MM
EFFECTIVE DURATION %
FUND BENCHMARK
< 1 Year 18.4 2.4
1 - 3 Years 44.1 59.7
3 - 5 Years 34.5 38.0
5 - 7 Years 2.4 0.0
7 - 10 Years 0.4 0.0
10 - 20 Years 0.1 0.0
> 20 Years 0.0 0.0
CREDIT QUALITY %
FUND BENCHMARK
AAA 41.6 68.5
AA 6.1 6.1
A 19.6 13.1
BBB 27.0 12.2
Below BBB 4.8 0.0
Cash 0.8 0.0
2%
1%
0%
CUIT Opport. Bond B Bloomberg 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 -0.15 1.63 1.71 – –
CUIT Opport. Bond B -0.01 1.78 1.90 – –
Bloomberg Barclays 1-5 Year Government/Credit -0.30 1.27 1.27 – –
CALENDAR YEAR RETURN 2017 2016 2015 2014 2013
CUIT Opport. Bond A 1.63 2.54 0.98 1.23 –
CUIT Opport. Bond B 1.78 2.69 1.23 1.27 –
Bloomberg Barclays 1-5 Year Government/Credit 1.27 1.56 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.
RISK METRICS
CHARACTERISTICS FUND / 3 YR BENCHMARK / 3 YR
Sharpe Ratio 2.0 0.7
Information Ratio 1.5 N/A
Standard Deviation 1.0 1.3
Tracking Error 0.7 N/A
Upside Capture 106.0 100.0
Downside Capture 16.5 100.0
Christian Brothers Investment Services, Inc. n [email protected] PAGE 15Christian Brothers Investment Services, Inc. n [email protected] PAGE 2 | CB -FFS-000-0000
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.
CUIT Opportunistic Bond Fund
ALLOCATIONS %
Treasuries Agency Industrials Finance Utilities Non-Corp. MBS CMO CMBS ABS MunicipalsMerger/
Arbitrage Cash
Fund 18.5 1.6 24.1 19.2 1.9 0.0 2.5 1.1 11.8 8.6 3.5 6.4 0.8
Benchmark 60.6 6.8 15.1 11.3 1.2 4.4 0.0 0.0 0.0 0.0 0.7 0.0 0.0
All attribution is based on gross portfolio performance.
Active Weights
-42.1%
Treasuries
-5.2%
Agency 2.5%
MBS
1.1%CMO
2.8%
Municipals
6.4%
M&A
0.8%Cash
9.0%
Industrials
7.9%
Finance0.7%Utilies -4.4%
Non-Corp.11.8% 8.6%
CMBS ABS
Christian Brothers Investment Services, Inc. n [email protected] PAGE 16
FUND FACTS
PROFILE Q4 2017
Christian Brothers Investment Services, Inc. (800)-592-8890 n [email protected]
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
BenchmarkBloomberg Barclays 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
Fund Features Commingled fund exclusive for tax-exempt Catholic institutions
Daily NAV and daily liquidity
Dividends Distributed Monthly
PORTFOLIO ANALYSIS
STATISTICS FUND BENCHMARK
Average Maturity (years) 7.3 Yrs 8.1 Yrs
Effective Duration (years) 5.3 Yrs 5.9 Yrs
Average Quality AA AA
Yield-to-Maturity 2.9% 2.7%
Current Yield 3.0% 3.0%
# of Securities 757 9,706
Fund Size $1,235.9MM
EFFECTIVE DURATION %
FUND BENCHMARK
< 1 Year 9.3 0.9
1 - 3 Years 22.8 22.7
3 - 5 Years 33.9 36.2
5 - 7 Years 17.4 17.8
7 - 10 Years 6.0 7.8
10 - 20 Years 9.0 14.1
> 20 Years 1.5 0.6
CREDIT QUALITY %
FUND BENCHMARK
AAA 64.0 71.0
AA 3.2 3.9
A 10.4 11.6
BBB 16.7 13.5
Below BBB 2.4 0.0
Cash 3.4 0.0
6%5%4%3%2%1%0%
-1
CUIT Int. Divers. Bond B Bloomberg Barclays Aggregate Bond Index
FUND PERFORMANCE
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Int. Divers. Bond A 0.32 3.38 2.24 2.10 4.61
CUIT Int. Divers. Bond B 0.36 3.54 2.38 2.26 4.77
Bloomberg Barclays Aggregate Bond Index 0.39 3.54 2.24 2.10 4.01
CALENDAR YEAR RETURN 2017 2016 2015 2014 2013
CUIT Int. Divers. Bond A 3.38 3.53 -0.13 5.65 -1.73
CUIT Int. Divers. Bond B 3.54 3.69 -0.05 5.81 -1.51
Bloomberg Barclays Aggregate Bond Index 3.54 2.65 0.55 5.97 -2.02
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 0.9 0.6
Information Ratio 0.9 N/A
Standard Deviation 2.7 2.8
Tracking Error 0.7 N/A
Upside Capture 100.9 100.0
Downside Capture 82.5 100.0
Christian Brothers Investment Services, Inc. n [email protected] PAGE 17Christian Brothers Investment Services, Inc. n [email protected] PAGE 2 | CB -FFS-000-0000
CUIT Int. Diversified Bond Fund
ALLOCATIONS %
Treasuries Agency Industrials Finance Utilities Non-Corp. MBS CMO CMBS ABS Municipals Cash
Fund 39.0 0.8 16.3 12.8 1.7 0.0 20.8 1.0 2.0 2.5 1.4 3.4
Benchmark 36.9 3.3 15.9 8.2 1.8 2.6 28.0 0.0 1.8 0.5 1.0 0.0
All attribution is based on gross portfolio performance.
Active Weights
2.1%
Treasuries
-2.5%
0.4%Agency
-7.2%
MBS1.0%
CMO
0.4%
3.4%
Municipals CashIndustrials
4.6%
Finance -0.1%Utilies
-2.6%
Non-Corp. 0.2%
CMBS
2.0%
ABS
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.
Christian Brothers Investment Services, Inc. n [email protected] PAGE 18
FUND FACTS
PROFILE Q4 2017
Christian Brothers Investment Services, Inc. (800) 592-8890 n [email protected]
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 Index / 40% Bloomberg Barclays 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 0.89% / No Minimum
Fund Features Commingled fund exclusive for tax-exempt Catholic institutions
Daily NAV and daily liquidity
Dividends Distributed Monthly
PORTFOLIO ANALYSIS
STATISTICS FUND S&P 500
Weighted Median Market Cap $68.8B $94.4B
Price/Book 2.4x 3.2x
Price/Earnings 23.3x 23.2x
Return on Equity 15.5% 19.3%
Dividend Yield 1.6% 1.8%
5-year Earnings Growth 9.4% 11.8%
Beta 1.1 1.0
10 Largest Holdings 27.0 11.6
# of Equity Securities 475 507
Fund Size $230.1MM
TOP TEN HOLDINGS
STATISTICS %
Bank of America Corporation 3.3
Alphabet Inc. 3.2
Microsoft Corporation 3.2
Wells Fargo & Company 2.9
Charles Schwab Corporation 2.8
Capital One Financial Corporation 2.7
JPMorgan Chase & Co. 2.3
Comcast Corporation 2.3
Goldman Sachs Group, Inc. 2.3
Twenty-First Century Fox, Inc. 2.1
PORTFOLIO ANALYSIS: FIXED INCOME
STATISTICS FUND BBAgg
Average Maturity 7.3 8.1
Effective Duration (years) 5.3 5.9
Average Quality AA- AA
Yield-to-Maturity 2.8% 2.7%
Current Yield 3.2% 3.0%
# of Securities 429 9,706
EFFECTIVE DURATION FUND BBAgg
< 1 Year 8.8 0.9
1 - 3 Years 23.2 22.7
3 - 5 Years 34.8 36.2
5 - 7 Years 16.3 17.8
7 - 10 Years 6.0 7.8
10 - 20 Years 9.2 14.1
> 20 Years 1.6 0.6
18%16%14%12%10%
8%6%4%2%0%
CUIT Balanced Fund 60% S&P 500 / 40% BB Agg
FUND PERFORMANCE
% AVERAGE ANNUAL RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Balanced 4.75 13.08 7.36 10.30 6.92
60% S&P 500 Index / 40% Bloomberg Barclays Aggregate Bond 4.11 14.25 7.89 10.33 7.08
CALENDAR YEAR RETURN 2017 2016 2015 2014 2013
CUIT Balanced 13.08 12.05 -2.33 8.80 21.29
60% S&P 500 Index / 40% Bloomberg Barclays Aggregate Bond 14.25 8.31 1.28 10.62 17.56
Please see Important Information on Page 2
3 MO 1 YR 3 YR 5 YR 10 YR
Christian Brothers Investment Services, Inc. n [email protected] PAGE 19Christian Brothers Investment Services, Inc. n [email protected] PAGE 2 | CB -FFS-000-0000
Important InformationBenchmark Index: The Fund’s benchmark was changed to 60% S&P 500 Index / 40% Bloomberg Barclays Aggregate effective January 2, 2003. For prior periods, the applicable benchmark was 60% S&P 500 Index / 30% LB Aggregate / 10% T-Bill. 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 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.
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.
CUIT Balanced Fund
All attribution is based on gross portfolio performance.
Active Weights
-2.5%-2.4%
0.9%
5.8%
0.1%
-2.6%
-4.9%
1.2% 0.5%
2.6%
0.3%
1.1%
MBSCMO Municipals
CashAgencyTreasuriesIndustrials Finance Utilities
Non-Corp.CMBS ABS
MARKET SECTOR ANALYSIS % – EQUITY
Consumer Discretionary
Consumer Staples Energy Financials Health Care Industrials
Information Technology Materials Real Estate
Telecomm Service Utilities Cash
Fund 15.6 4.8 7.4 25.8 9.2 7.3 21.4 2.1 1.2 1.9 1.1 2.3
S&P 500 12.3 8.2 6.1 14.9 13.8 10.2 23.7 3.0 2.9 2.1 2.9 0.0
MARKET SECTOR ANALYSIS % – FIXED INCOME
Treasuries Agency Industrials Finance Utilities Non-Corp. MBS CMO CMBS ABS Municipals Cash
Fund 34.5 0.8 16.8 14.0 1.9 0.0 23.1 1.2 2.3 3.1 1.3 1.1
BBAgg 36.9 3.3 15.9 8.2 1.8 2.6 28.0 0.0 1.8 0.5 1.0 0.0
All attribution is based on gross portfolio performance.
Active Weights
3.3%
-2.3%-3.4%
1.3%
10.9%
-4.6%-2.9%
-0.9% -0.2%
-1.7%
-1.8%
2.3%
Consumer Discretionary
Information Technology Materials
Cash
Consumer Staples
Energy Financials
Health Care IndustrialsTelecomm
ServiceReal Estate Utilities
Christian Brothers Investment Services, Inc. n [email protected] PAGE 20
FUND FACTS
PROFILE Q4 2017
Christian Brothers Investment Services, Inc. (800) 592-8890 n [email protected]
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 Index
Asset ManagersRhumbLine Advisers (Effective 1/1/95)
Total Expense Ratio / Minimum Class A: 0.38% / No MinimumClass B: 0.18% / $3M
Fund Features Commingled fund exclusive for tax-exempt Catholic institutions
Daily NAV and daily liquidity
Dividends Distributed Quarterly
PORTFOLIO ANALYSIS
STATISTICS FUND BENCHMARK
Weighted Median Market Cap $86.5B $94.4B
Price/Book 3.2x 3.2x
Price/Earnings 21.2x 23.2x
Return on Equity 20.3% 19.3%
Dividend Yield 1.7% 1.8%
5-year Earnings Growth 13.0% 11.8%
Beta 1.0 1.0
Active Share 14.8 N/A
10 Largest Holdings 22.7 20.0
# of Equity Securities 467 507
Fund Size $1,876.8MM
TOP TEN HOLDINGS
STATISTICS %
Apple Inc. 4.0
Microsoft Corporation 3.2
Alphabet Inc. 3.0
Berkshire Hathaway Inc. 2.6
Amazon.com, Inc. 2.1
Facebook, Inc. 1.8
Exxon Mobil Corporation 1.7
JPMorgan Chase & Co. 1.6
3M Company 1.5
Bank of America Corporation 1.2
20%
10%
0%
CUIT Core Equity B S&P 500 Index
RISK METRICSCHARACTERISTICS FUND / 5 YR BENCHMARK / 5 YR
Sharpe Ratio 1.6 1.6
Information Ratio 0.3 N/A
Standard Deviation 9.6 9.5
Tracking Error 0.6 N/A
Upside Capture 101.6 100.0
Downside Capture 102.0 100.0
FUND PERFORMANCE
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Core Equity A 7.09 22.64 11.02 15.55 8.04
CUIT Core Equity B 7.14 22.87 11.25 15.78 8.25
S&P 500 Index 6.64 21.83 11.41 15.79 8.50
CALENDAR YEAR RETURN 2017 2016 2015 2014 2013
CUIT Core Equity A 22.64 11.27 0.29 13.99 32.03
CUIT Core Equity B 22.87 11.51 0.50 14.19 32.31
S&P 500 Index 21.83 11.96 1.38 13.69 32.39
Please see Important Information on Page 2 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.
3 MO 1 YR 3 YR 5 YR 10 YR
Christian Brothers Investment Services, Inc. n [email protected] PAGE 21Christian Brothers Investment Services, Inc. n [email protected] PAGE 2 | CB -FFS-000-0000
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.
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 Weights0.2% 0.2% 0.2%0.0% 0.0%
0.6% 0.5%0.7%
-1.0%
-2.1%
0.4% 0.1%Consumer
DiscretionaryInformationTechnology
Materials CashConsumerStaples
Energy Financials
Healthcare Industrials
RealEstate
TelecommService
Utilities
MARKET SECTOR ANALYSIS %
Consumer Discretionary
Consumer Staples Energy Financials Healthcare Industrials
Information Technology Materials Real Estate
TelecommService Utilities Cash
Fund 12.5 8.2 6.1 15.6 11.7 9.2 24.3 3.2 3.3 2.2 3.1 0.5
Benchmark 12.3 8.2 6.1 14.9 13.8 10.2 23.7 3.0 2.9 2.1 2.9 0.0
Christian Brothers Investment Services, Inc. n [email protected] PAGE 22
FUND FACTS
PROFILE Q4 2017
Christian Brothers Investment Services, Inc. (800) 592-8890 n [email protected]
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
Fund Features Commingled fund exclusive for tax-exempt Catholic institutions
Daily NAV and daily liquidity
Dividends Distributed Quarterly
TOP TEN HOLDINGS
STATISTICS %
Bank of America Corporation 3.9
JPMorgan Chase & Co. 3.5
Cigna Corporation 2.3
Microsoft Corporation 2.2
Charles Schwab Corporation 2.2
Capital One Financial Corporation 2.1
Wells Fargo & Company 2.0
Express Scripts Holding Company 1.9
Wal-Mart Stores, Inc. 1.7
Goldman Sachs Group, Inc. 1.6
PORTFOLIO ANALYSIS
STATISTICS FUND BENCHMARK
Weighted Median Market Cap $47.6B $65.6B
Price/Book 2.1x 2.0x
Price/Earnings 18.5x 19.8x
Return on Equity 15.8% 11.6%
Dividend Yield 1.6% 2.3%
5-year Earnings Growth 12.2% 8.0%
Beta 1.1 1.0
Active Share 70.2 N/A
10 Largest Holdings 23.4 10.0
# of Equity Securities 173 713
Turnover Rate 46.0 N/A
Fund Size $357.8MM
RISK METRICSCHARACTERISTICS FUND / 5 YR BENCHMARK / 5 YR
Sharpe Ratio 1.3 1.4
Information Ratio 0.4 N/A
Standard Deviation 11.3 9.9
Tracking Error 3.3 N/A
Upside Capture 108.2 100.0
Downside Capture 103.1 100.0
Please see Important Information on Page 2
25%
20%
15%
10%
0%
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 7.47 16.53 8.60 14.18 6.99
CUIT Value Equity B 7.58 16.96 8.98 14.59 7.37
Russell 1000 Value Index 5.33 13.66 8.65 14.04 7.10
CALENDAR YEAR RETURN 2017 2016 2015 2014 2013
CUIT Value Equity A 16.53 13.98 -3.58 9.57 38.32
CUIT Value Equity B 16.96 14.41 -3.26 9.97 38.80
Russell 1000 Value Index 13.66 17.34 -3.83 13.45 32.53
3 MO 1 YR 3 YR 5 YR 10 YR
Christian Brothers Investment Services, Inc. n [email protected] PAGE 23Christian Brothers Investment Services, Inc. n [email protected] PAGE 2 | CB -FFS-000-0000
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
5.8%
-4.1%
-1.4%-2.3%
-1.1%
1.8%
6.0%
-0.4%-1.0%
-3.4%
2.8%
-2.7%
Consumer Discretionary
InformationTechnology
Materials
Cash
Real EstateConsumer
Staples Energy
Financials
Healthcare IndustrialsTelecomm
Service Utilities
MARKET SECTOR ANALYSIS %
Consumer Discretionary
Consumer Staples Energy Financials Healthcare Industrials
Information Technology Materials Real Estate
TelecommService Utilities Cash
Fund 12.6 4.5 9.6 28.4 11.2 7.3 14.5 2.6 2.0 2.0 2.5 2.8
Benchmark 6.8 8.6 11.0 26.6 13.5 8.4 8.5 3.0 4.7 3.0 5.9 0.0
Christian Brothers Investment Services, Inc. n [email protected] PAGE 24
FUND FACTS
PROFILE Q4 2017
Christian Brothers Investment Services, Inc. (800) 592-8890 n [email protected]
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
Fund Features Commingled fund exclusive for tax-exempt Catholic institutions
Daily NAV and daily liquidity
30%25%20%15%10%
5%
0%
CUIT Growth B Russell 1000 Growth Index
RISK METRICSCHARACTERISTICS FUND / 5 YR BENCHMARK / 5 YR
Sharpe Ratio 1.7 1.7
Information Ratio -0.2 N/A
Standard Deviation 9.7 10.0
Tracking Error 1.7 N/A
Upside Capture 96.7 100.0
Downside Capture 95.7 100.0
FUND PERFORMANCE
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Growth A 6.34 25.38 11.63 15.60 7.71
CUIT Growth B 6.44 25.77 11.98 15.97 8.05
Russell 1000 Growth Index 7.86 30.21 13.79 17.33 10.00
CALENDAR YEAR RETURN 2017 2016 2015 2014 2013
CUIT Growth A 25.38 5.37 5.29 11.65 32.92
CUIT Growth B 25.77 5.69 5.63 12.06 33.31
Russell 1000 Growth Index 30.21 7.08 5.67 13.05 33.49
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 $84.7B $93.6B
Price/Book 5.0x 6.5x
Price/Earnings 25.6x 27.1x
Return on Equity 23.9% 25.2%
Dividend Yield 1.2% 1.3%
5-year Earnings Growth 14.2% 14.8%
Beta 1.1 1.0
Active Share 48.0 N/A
10 Largest Holdings 35.8 29.5
# of Equity Securities 252 551
Turnover Rate 66.4 N/A
Fund Size $318.0MM
TOP TEN HOLDINGS
STATISTICS %
Apple Inc. 7.7
Alphabet Inc. 6.1
Microsoft Corporation 5.9
Facebook, Inc. 4.0
Amazon.com, Inc. 3.2
Home Depot, Inc. 2.2
Visa Inc. 2.1
Mastercard Incorporated 1.6
Texas Instruments Incorporated 1.6
Caterpillar Inc. 1.4
Christian Brothers Investment Services, Inc. n [email protected] PAGE 25Christian Brothers Investment Services, Inc. n [email protected] PAGE 2 | CB -FFS-000-0000
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.
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
-4.0%
-5.5%
1.0%
3.1%
-4.0%
-1.5%-0.9%-0.8%
11.0%
0.3% 0.0%1.4%Consumer
DiscretionaryInformationTechnology
Materials Cash
ConsumerStaples
Energy Financials
Healthcare Industrials Real EstateTelecomm
Service
Utilities
MARKET SECTOR ANALYSIS %
Consumer Discretionary
Consumer Staples Energy Financials Healthcare Industrials
Information Technology Materials Real Estate
TelecommService Utilities Cash
Fund 14.1 1.3 1.9 6.5 8.8 11.3 48.9 4.0 1.7 0.1 0.0 1.4
Benchmark 18.1 6.8 0.9 3.4 12.8 12.8 37.9 3.7 2.5 1.0 0.0 0.0
Christian Brothers Investment Services, Inc. n [email protected] PAGE 26
FUND FACTS
PROFILE Q4 2017
Christian Brothers Investment Services, Inc. (800) 592-8890 n [email protected]
CUIT Small Cap Equity Index Fund
Objective Long-term capital appreciation by attempting to replicate the performance of the S&P SmallCap 600, a commonly used index of domestic small-capitaliza-tion stocks
InvestmentsCommon stocks of companies that generally comprise the S&P SmallCap 600
StrategyClosely track the benchmark Index, while seeking replacements for screened stocks among companies with similar market capitalizations in the same or a related industry
BenchmarkS&P SmallCap 600 Index
Asset ManagersRhumbLine Advisers (Effective 1/07)
Total Expense Ratio / Minimum Class A: 0.56% / No MinimumClass B: 0.26% / $3M
Fund Features Commingled fund exclusive for tax-exempt Catholic institutions
Daily NAV and daily liquidity
25%
20%
15%
10%
5%
0%
CUIT Small Cap B S&P SmallCap 600 Index
RISK METRICSCHARACTERISTICS FUND / 5 YR BENCHMARK / 5 YR
Sharpe Ratio 1.0 1.0
Information Ratio 0.6 N/A
Standard Deviation 13.9 13.9
Tracking Error 0.3 N/A
Upside Capture 100.3 100.0
Downside Capture 99.4 100.0
FUND PERFORMANCE
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT Small Cap Equity Index A 3.65 14.43 9.54 13.64 8.24
CUIT Small Cap Equity Index B 3.73 14.81 9.86 13.97 8.55
S&P SmallCap 600 Index 3.86 15.22 10.14 14.24 8.77
CALENDAR YEAR RETURN 2017 2016 2015 2014 2013
CUIT Small Cap Equity Index A 14.43 20.60 -4.75 4.46 38.05
CUIT Small Cap Equity Index B 14.81 20.97 -4.53 4.81 38.38
S&P SmallCap 600 Index 15.22 21.31 -4.41 4.90 38.82
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. 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 $1.8B $1.8B
Price/Book 2.2x 2.3x
Price/Earnings 24.1x 24.3x
Return on Equity 9.9% 9.9%
Dividend Yield 1.3% 1.2%
5-year Earnings Growth 7.7% 7.7%
Beta 1.0 1.0
Active Share 2.4 N/A
10 Largest Holdings 5.5% 5.5%
# of Equity Securities 606 604
Turnover Rate 87.4 N/A
Fund Size $353.2MM
TOP TEN HOLDINGS
STATISTICS %
Nektar Therapeutics 1.2
Interactive Brokers Group, Inc. 0.5
Chemed Corporation 0.5
Healthcare Services Group, Inc. 0.5
ALLETE, Inc. 0.5
Cantel Medical Corp. 0.5
Five Below, Inc. 0.5
Spire Inc. 0.5
John Bean Technologies Corporation 0.4
Evercore Inc. 0.4
Christian Brothers Investment Services, Inc. n [email protected] PAGE 27Christian Brothers Investment Services, Inc. n [email protected] PAGE 2 | CB -FFS-000-0000
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® 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 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.
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-0.3%
1.2%
-0.2% -0.3%
0.1% 0.1%0.2%
-0.4%-0.1% -0.1% -0.1%
Consumer Discretionary
InformationTechnology Materials
Cash
ConsumerStaples Energy
FinancialsHealthcare Industrials
TelecommService
Real EstateUtilities
MARKET SECTOR ANALYSIS %
Consumer Discretionary
Consumer Staples Energy Financials Healthcare Industrials
Information Technology Materials Real Estate
TelecommService Utilities Cash
Fund 15.5 2.7 3.3 16.7 13.0 19.0 13.6 5.3 5.7 1.2 2.7 1.2
Benchmark 15.8 2.9 3.4 16.5 13.2 19.4 13.9 5.4 5.6 1.1 2.8 0.0
-0.2%
Christian Brothers Investment Services, Inc. n [email protected] PAGE 28
FUND FACTS
PROFILE Q4 2017
Christian Brothers Investment Services, Inc. (800) 592-8890 n [email protected]
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: 1.40% / No minimumClass B: 0.98% / $5M
Fund Features Commingled fund exclusive for tax-exempt Catholic institutions
Daily NAV and daily liquidity
QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR
CUIT International Equity A 5.49 30.47 9.08 8.48 2.12
CUIT International Equity B 5.61 31.04 9.52 8.92 2.53
MSCI ACWI ex-U.S. 5.06 27.77 8.88 8.73 2.59
CALENDAR YEAR RETURN 2017 2016 2015 2014 2013
CUIT International Equity A 30.47 2.35 -2.82 -5.11 22.03
CUIT International Equity B 31.04 2.75 -2.45 -4.72 22.49
MSCI ACWI ex-U.S. 27.77 5.01 -3.81 -4.49 23.30
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 0.9 0.7
Information Ratio 1.0 N/A
Standard Deviation 11.1 11.7
Tracking Error 2.8 N/A
Upside Capture 103.3 100.0
Downside Capture 85.3 100.0
GEOGRAPHIC DISTRIBUTIONFUND BENCHMARK
United Kingdom 15.2 12.2
Canada 7.2 6.6
Japan 12.1 16.5
France 6.7 7.3
Italy 3.8 1.6
Israel 0.0 0.3
Germany 6.9 6.7
USA* 7.0 0.0
Other Europe 14.4 15.8
Developed Asia 3.6 8.2
Emeg. Mkts Asia 17.8 18.1
Other Emeg. Mkts 5.3 6.6
30%
20%
10%
0%
CUIT International Equity B MSCI ACWI ex-U.S.
FUND PERFORMANCE
3 MO 1 YR 3 YR 5 YR 10 YR
PORTFOLIO ANALYSIS
STATISTICS FUND BENCHMARK
Weighted Median Market Cap $38.5B $37.6B
Price/Book 2.1x 1.8x
Price/Earnings 18.0x 16.4x
Return on Equity 16.1% 14.0%
Dividend Yield 2.1% 2.7%
5-year Earnings Growth 10.5% 7.0%
Beta 1.0 1.0
Active Share 74.1 N/A
10 Largest Holdings 18.9 4.6
# of Equity Securities 359 1866
Turnover Rate 39.2 N/A
Fund Size $853.0MM
TOP TEN HOLDINGS
STATISTICS %
Tencent Holdings Ltd. 3.4
Taiwan Semiconductor Manufacturing Co., Ltd. 2.3
Canadian Pacific Railway Limited 2.2
Nestle S.A. 2.0
Volkswagen AG 1.7
LVMH Moet Hennessy Louis Vuitton SE 1.6
Keyence Corporation 1.5
Barclays PLC 1.4
HDFC Bank Limited 1.4
Accenture plc 1.4
*U.S. allocation includes ADRs and cash.
Christian Brothers Investment Services, Inc. n [email protected] PAGE 29Christian Brothers Investment Services, Inc. n [email protected] PAGE 2 | CB -FFS-000-0000
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.
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 Real Estate
TelecommService Utilities Cash
Fund 14.9 9.2 5.9 16.5 5.7 15.5 17.1 8.2 1.2 2.9 1.5 1.4
Benchmark 11.3 9.6 6.7 23.1 7.6 11.9 11.5 8.1 3.2 4.0 2.9 0.0
All attribution is based on gross portfolio performance.
Active Weights
3.6%
-0.4% -0.1%-0.8%
-6.6%
-1.9%
3.6%
5.6%
-2.0%-1.1% -1.4%
1.4%
Consumer Discretionary
InformationTechnology
Materials
Cash
ConsumerStaples Energy Financials Healthcare
Industrials
Real EstateTelecomm
Service Utilities
Christian Brothers Investment Services, Inc. n [email protected] PAGE 30
CBIS’ offers a disciplined and comprehensive approach to Catholic Responsible InvestingSM
} CBIS pioneered Catholic Responsible Investingsm (CRI)and has more than 30 years of experience applying Catholic ethical and social teaching to the investing process.
} While socially responsible investing is often equated with stock screens, a truly effective Catholic Responsible InvestingSM program requires that we also 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 improve their policies and practices.
} Catholic Responsible InvestingSM 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 policies, we are helping support long-term performance and the potential growth of shareholder value.
TEL: 800-592-8890 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 20 North Wacker Drive, Suite 2000 Chicago, IL 60606-3002
TEL: 877-550-2247 312-803-6440 FAX: 312-803-6441
NEW YORK, NY 777 Third Avenue, 29th Floor, New York NY 10017-1401
TEL: 800-592-8890 212-490-0800 FAX: 212-490-6092
SAN FRANCISCO, CA One Embarcadero Center, Suite 500 San Francisco, CA 94111
TEL: 800-754-8177 415-623-2080 FAX: 415-623-2070
CBIS REGIONAL OFFICES
TO LEARN MORE ABOUT CBIS CBIS ACCOUNT SERVICES CBIS GLOBAL ROME SERVICE CENTRE
Investment Portfolio Review 4Q 2017
Christian Brothers Investment Services, Inc. n [email protected] PAGE 31
Investment Portfolio Review 4Q 2017
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 January 2, 2003, the benchmark for the CUIT Balanced Fund was changed to 60% S&P 500/40% Bloomberg Barclays Aggregate. For prior periods, the applicable benchmark was 60% S&P 500/30% LB Aggregate/10% T Bill. **** 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.
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.