In recent years, an increasing number of Catholic institutions have sought to extend their investment allocation beyond the traditional equity and bond asset classes by adding exposure to alternative investments, primarily hedge funds. We know this because many participants have asked us to explore available options and to consider offering an alternative investment product. During 2010, we created a new company called CBIS Capital, Ltd. that will enable many CBIS participants to access alternative investment programs, provided that an allocation to alternatives makes sense for their organizations.
The operating model for CBIS Capital, Ltd. is similar to that of RCT and CUIT. CBIS will solicit and aggregate capital from Catholic institutions that want exposure to alternatives through CBIS Capital, Ltd. We have designed this new company with long-term flexibility and convenience in mind. Our initial investment vehicle is a multi-strategy arbitrage fund that has successfully integrated social screens since its inception in early 2005. As overall commitments to CBIS Capital grow, and as comfort with and interest in alternative investments increases among CBIS participants, we will be adding more alternative fund managers.
CBIS Capital, Ltd. will enable many CBIS participants to access alternative investment programs, provided that an allocation to alternatives makes sense for their organizations.