Objective

Current income and long-term capital appreciation

Strategy

Uses 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

Fund Facts
Asset Manager
  • Longfellow Investment Management(Since 5/1/13)
  • Reams Asset Management Co.(Since 5/1/13)
Benchmark Bloomberg Barclays 1-5 Year Government/Credit
Fund Inception Date Class A & Class B: May 1, 2013
Mimimum Investment Class A: No minimum; Class B: $5 million
Expense Ratio Class A: 0.56%; Class B: 0.41%
Growth of $10,000
Inception Date: Class A & Class B: May 1, 2013

Annual Average Total Returns
(%) as of 09/30/2018

Trailing 3 Months 1 Year 3 Years 5 Years 10 Years
CUIT Opportunistic Bond Fund Class A 0.37 0.11 1.39 1.41 -
CUIT Opportunistic Bond Fund Class B 0.40 0.36 1.54 1.56 -
Bloomberg Barclays 1-5 Year US Government/Credit Index 0.26 -0.38 0.72 1.06 -
Calendar Year 2017 2016 2015 2014 2013
CUIT Opportunistic Bond Fund Class A 1.63 2.54 0.98 1.23 *
CUIT Opportunistic Bond Fund Class B 1.78 2.69 1.23 1.27 *
Bloomberg Barclays 1-5 Year US Government/Credit Index 1.27 1.56 0.97 1.42 *
Statistics Fund Index
Average Maturity (Yrs) 2.9 2.8
Effective Duration (Yrs) 2.4 2.6
Average Quality A+ AA
Yield-to-Maturity 3.5% 3.0%
Current Yield 3.1% 2.4%
# of Securities 325 2,884
Fund Size $441.7MM
Effective Duration Fund Index
< 1 Year 16.5 2.9
1 - 3 Years 48.9 60.6
3 - 5 Years 30.6 36.6
5 - 7 Years 3.4 0.0
7 - 10 Years 0.4 0.0
10 - 20 Years 0.2 0.0
> 20 Years 0.0 0.0
Market Sector Analysis Fund Index
Treasury and Gov’t Related 21.0 72.7
Corporate 44.2 27.3
MBS 4.4 0.0
CMBS 8.7 0.0
ABS 10.9 0.0
Merger/Arbitrage 7.6 0.0
Cash 3.1 0.0
Credit Quality Fund Index
AAA 37.1 69.3
AA 5.2 6.1
A 18.2 12.3
BBB 25.0 12.3
Below BBB 3.7 0.0
Cash 3.1 0.0

Bond allocation for Fund Statistics, Effective Duration and Credit Quality exclude M&A.

  • Q2 2018 Performance Review

    The CUIT Opportunistic Bond Fund returned 0.43% (Class B, 0.46%) versus the Bloomberg Barclays 1-5 Year U.S. Government/Credit Index’s 0.17% return.

    3-MONTH REVIEW

    • The Fund’s allocation effect was the largest contributor (~11 bps) to performance as securitized and corporate sectors returned positive results for the quarter.
    • Shorter relative duration (2.5 vs 2.6 years) added ~10 bps to overall performance as the Federal Reserve increased rates in June to the range of 1.75%-2.00%.
    • Curve positioning was additive (~3bps) for the period.
    • Security selection modestly lagged, (-2bps); the Fund’s holdings in agency and municipals struggled to add value.
    • The Fund’s merger and arbitrage sleeve outperformed as several transactions were completed during the quarter.

    12-MONTH REVIEW

    • Allocation effect (~46 bps) benefitted from the Fund’s overweight to securitized and corporate sectors. Exposure to ABS, CMBS, industrials, and financials were the main drivers of results.
    • The Fund’s shorter duration added positive returns (+28 bps) to boost performance for the trailing period.
    • Security selection was additive (+14 bps) largely from strength among corporates; industrial issues contributed 13 bps to selection results.
    • Curve positioning contributed 10 bps due to longer exposure relative to benchmark.
    • Several merger and arbitrage deals were completed in May and June, which added positively to performance. At the end of June, the strategy represented 7% of total assets in the Fund.

     

     

  • Fund Fact Sheet

    PDF
Please review our important disclosures.