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.
Pages to are hidden for
"CUIT Small-Capitalization Equity Index Fund"Please download to view full document