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CUIT Small-Capitalization Equity Index Fund

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									Christian Brothers Investment Services, Inc.
CUIT Small-Capitalization Equity Index Fund
Overview
Profile

    Objective – Track performance of the Russell 2000 Index                       Minimum Investment – Class A: $25,000 and Class B: $3 million;
                                                                                  $1,000 for subsequent investments
    Benchmark – Russell 2000 Index
                                                                                  Expense Ratio – Class A: 0.57%; Class B: 0.27%
    Investments – Common stocks of the companies that constitute the
    Russell 2000 Index with the exception of those screened by CBIS               All assets are invested according to CBIS’ Socially Responsible Investing
    Principled Purchasing criteria.                                               Guidelines.

    Fund Inception Date – December 29, 2006
    Fund Trust – The Catholic United Investment Trust (CUIT) was founded
    in 1983 as a not-for-profit trust with an independent Board of Trustees and
    engages CBIS to advise on and administer the equity programs.


Fund Strategy
The CUIT Small-Capitalization Equity Index Fund is structured to offer            The correlation between the Fund’s quarterly performance and that of the
style-neutral indexed exposure to the small-capitalization segment of the         Russell 2000 Index is generally 0.95 or higher (1.00 represents a perfect cor-
U.S. equity market, with reduced management fees and lower benchmark              relation).
tracking error than actively managed small-cap programs.


Sub-Adviser: Profile and Investment Process
RhumbLine Advisers                                                                ■   Approximately 1% of the Russell 2000 universe is composed of illiquid
                                                                                      companies with very small market capitalizations. Some of these may be
■   RhumbLine Advisers is a Boston-based institutional investment firm
                                                                                      omitted from the portfolio if RhumbLine believes they represent unat-
    that specializes in indexed and customized index-based strategies.
                                                                                      tractive investments due to extraordinary events or financial conditions.
    RhumbLine was incorporated in October 1990 and began managing
    U.S. tax-exempt assets in December 1990. Currently, the firm manages          ■   Companies added to the Russell 2000 through the index’s quarterly
    over $16 billion for more than 120 clients worldwide.                             reconstitution process or through IPOs are typically far less liquid than
                                                                                      are larger-cap companies and exhibit greater price volatility. As a result,
■   The Fund invests in the common stocks that constitute the Russell 2000
                                                                                      RhumbLine seeks to minimize trading costs by carefully adding these
    Index in approximately their index weights, with the exception of com-
                                                                                      companies to the Fund over time. The Fund’s relatively small size com-
    panies excluded by CBIS’ Principled Purchasing criteria. Excluded com-
                                                                                      pared with large Russell 2000 index funds also allows it to buy these
    panies represent approximately 1% of the market capitalization of the
                                                                                      stocks without driving share prices higher when building positions.
    Russell 2000 Index.
■   The portfolio is constructed to maintain the same overall characteristics         FOUNDED: 1990               LOCATION: BOSTON, MA
    as those of the benchmark. In order to replicate the performance of               A.U.M.: $14.8 BILLION       OWNERSHIP: EMPLOYEE-OWNED
    excluded companies, RhumbLine attempts to identify substitute invest-             EFFECTIVE DATE: JAN. 2007   SHARE OF FUND ASSETS: 100%
    ments in companies of comparable capitalization which are engaged in
    the same or a related industry.
CUIT Small-Capitalization Equity Index Fund Class A and B
First Quarter 2009 Update

Commentary                                                                                                                                         Fund Performance
The CUIT Small-Capitalization Equity Index Fund declined 14.84% (Class B, -14.79%)                                                                  Fund and Benchmark                       3 Months     1 Year     3 Years     5 Years    10 Years
                                                                                                                                                                                         0
for the quarter, marginally exceeding the Russell 2000 Index’s -14.95% return. Principled
                                                                                                                                                                                       -10
Purchasing restrictions contributed positively to relative performance. The relatively
                                                                                                                                                                                       -20
strong performance of several permitted aerospace holdings was particularly helpful as
several restricted names significantly underperformed the industry and the Russell 2000.                                                                                               -30

The Fund’s aerospace holdings were down 19.4% compared to -26.94% for the group in                                                                                                     -40

the benchmark. A 0.1 % average underweight and better relative performance within                                                                    Sm-Cap Indx Fund Class A -14.84                     -37.24         *          *         *
the drugs and medicine group contributed as well. As in the case of aerospace, several                                                               Sm-Cap Indx Fund Class B -14.79                     -37.16         *          *         *
restricted names posted outsized declines relative to the industry group and benchmark.                                                              Russell 2000 Index       -14.95                     -37.50         *          *         *
As a group, excluded tobacco-related companies generated a positive return for the peri-
od, which translated into a slight drag on relative results. Tobacco-related companies                                                               Portfolio Analysis
represented about 0.30% of the total market capitalization of the benchmark during the                                                               Statistics                                         SCEF                   Russell 2000
quarter. A restricted weapons manufacturer rose over 165% for the quarter on increased                                                               Median Market Cap                                  $0.3 B                    $0.3 B
gun buying driven largely by concern that the government might impose stricter gun                                                                   Weighted Avg. Market Cap                           $0.8 B                    $0.8 B
control measures. Given its low index weight, its sharp price increase translated into a 2                                                           Average Price/Book                                 1.1x                      1.1x
basis point relative performance gain for the benchmark.                                                                                             Average Price/Earnings                             22.1x                     22.1x
                                                                                                                                                     Average Yield                                      1.9%                      1.9%
Among the top absolute and relative contributors to Fund results for the period were                                                                 Beta                                               1.2                       1.2
Palm Inc (+180.8%), CV Therapeutics (+115.8%), Aeropostale (+64.9%), Netflix                                                                         5-Year Earnings Growth Rate                        8.4%                      8.5%
(+43.6%) and Myriad Genetics (+37.2%). Top detractors included International                                                                         10 Largest Holdings                                4.0%                      4.0%
                                                                                                                                                     (% of total)
Bancshares (-64.3%), UAL (-59.3%) and Apollo Investments (-57.9%).
                                                                                                                                                     # of Equity Securities                             1,890                     1,914
The CUIT Small-Capitalization Equity Index Fund declined 37.24% (Class B, -37.16%)                                                                   Turnover Rate                                      NA                        N/A
for the trailing twelve months, exceeding the Russell 2000 Index’s -37.50% return.                                                                   Fund Size                                          $141.2 mm
Restricted companies underperformed permitted names overall, resulting in a 12 basis
                                                                                                                                                     Market Sector Analysis %
point relative performance boost in drugs and medicine, 6 in aerospace and 5 in tobacco.
                                                                                                                                                     Allocations                                        SCEF                Russell 2000
Top contributors to absolute and relative return included Alpha Natural Resources
                                                                                                                                                     Consumer Discretionary                             11.2                     11.3
(+140.1%), Petrohawk Energy (+129.6%), Myriad Genetics (+125.7%), Walter                                                                             Consumer Staples                                    3.8                      4.1
Industries (+73.8%) and CF Industries Holdings (+47.6%). The top detractors included                                                                 Energy                                              4.4                      4.5
Lear Corp (-97.1%), Stone Energy Corp (-93.6%) and Exco Resources (-45.9%).                                                                          Financials                                         21.0                     21.2
                                                                                                                                                     Healthcare                                         16.0                     16.1
                                                                                                                                                     Industrials                                        16.1                     16.2
                                                                                                                                                     Information Technology                             17.0                     17.2
                                                                                                                                                     Materials                                           3.6                      3.6
                                                                                                                                                     Telecommunications Service                          1.2                      1.2
                                                                                                                                                     Utilities                                           4.6                      4.6
                                                                                                                                                     Cash                                                0.9                      0.0

                                                                                                                                                     Top Ten Equity Holdings
                                                                                                                                                     Company                                             %
                                                                                                                                                     Myriad Genetics                                     0.6
                                                                                                                                                     Alexion Pharmaceuticals                             0.5
                                                                                                                                                     Ralcorp Holdings                                    0.5
                                                                                                                                                     Sybase                                              0.4
                                                                                                                                                     OSI Pharmaceuticals                                 0.3
                                                                                                                                                     ITC Holdings                                        0.3
                                                                                                                                                     Watson Wyatt                                        0.3
                                                                                                                                                     Waste Connections                                   0.3
                                                                                                                                                     Wendys Arbys Group                                  0.3
                                                                                                                                                     Aspen Insurance                                     0.3



Performance for periods of one year and longer are annualized. All fund performance (including that of comparative indices) 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(s) will fluctuate, and upon redemption, shares in the Fund(s) may be worth less than their original cost. The RCT Flex Cash 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 pur-
pose of measuring relative performance. Comparative index information is provided by Lipper Analytical Services, Inc. and Mellon Bank; information regarding composition of indexes may be obtained from provider or CBIS. CBIS offers pooled
funds on behalf of two not-for-profit investment trusts, Religious Communities Trust (RCT) and Catholic United Investment Trust (CUIT), Offering Memoranda / Disclosure Statements, which contain further information, are available by calling
either 800-592-8890 or 800-321-7194. Such information should be carefully considered prior to investing in the Funds.

								
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