Objective

Preserve capital while providing current income in excess of cash market yields with moderate emphasis on capital appreciation.

Strategy

Focuses on sector allocation and security selection, coupled with a  top-down macroeconomic risk management process; aimed at minimizing downside risk while maximizing income potential.

Fund Facts
Asset Manager
  • Longfellow Investment Management Co.(Since 7/1/08)
Benchmark Bloomberg Barclays 1-3 Year Treasury Index
Fund Inception Date January 1, 1985
Mimimum Investment No minimum investment required
Expense Ratio 0.34%

Additional Facts

The Fund’s benchmark was changed to the Barclays Capital 1-3 Year Treasury Index effective July 1, 2016. The benchmark performance shown reflects the linked performance of the following benchmarks for each applicable period: 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.

Annual Average Total Returns
(%) as of 03/31/2019

Trailing 3 Months 1 Year 3 Years 5 Years 10 Years
CUIT Short Bond Fund 1.31 2.8 1.87 1.61 2.34
Bloomberg Barclays 1-3 Year Treasury Index** 0.99 2.73 0.98 0.97 1.04
Calendar Year 2018 2017 2016 2015 2014 2013
CUIT Short Bond Fund 1.41 1.71 1.99 0.81 1.37 0.84
Bloomberg Barclays 1-3 Year Treasury Index** 1.56 0.42 0.86 0.54 0.62 0.36

** 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.

Characteristics as of 03/31/2019

Statistics Fund Index
Average Maturity (Yrs) 2.2 1.9
Effective Duration (Yrs) 1.9 1.9
Average Quality AA- TSY
Yield-to-Maturity 3.1% 2.3%
Current Yield 2.9% 2.1%
# of Securities 195 98
Fund Size $338.9MM
Effective Duration Fund Index
< 1 Year 27.6 3.6
1 - 3 Years 49.5 96.4
3 - 5 Years 19.9 0.0
5 - 7 Years 2.6 0.0
7 - 10 Years 0.4 0.0
10 - 20 Years 0.0 0.0
> 20 Years 0.0 0.0
Market Sector Analysis Fund Index
Treasury and Gov’t Related 35.7 100.0
Corporate 33.8 0.0
MBS 1.9 0.0
CMBS 9.8 0.0
ABS 18.1 0.0
Cash 0.7 0.0
Credit Quality Fund Index
AAA 59.2 100.0
AA 6.0 0.0
A 15.8 0.0
BBB 15.2 0.0
Below BBB 3.0 0.0
Cash 0.7 0.0
Risk Metrics Fund
(5 YR)
Index
(5 YR)
Standard Deviation 0.7 0.8
Tracking Error 0.4 0.0
Sharpe Ratio 1.7 0.3
Information Ratio 2.1 N/A
Upside Capture 121.8 100.0
Downside Capture 7.1 100.0
  • Q1 2019 Performance Review

    12-Month Review

    • The Fund’s slightly longer than benchmark duration (1.9 vs. 1.85) contributed ~ 7 bps of the Fund’s outperformance as rates declined for the period.
    • Curve positioning contributed ~ 22bps of value add to the fund.
    • Sector allocation was additive due primarily to the fund’s securitized allocation (+18 bps). Specifically, CMBS and ABS were the largest contributors to results.
    • Security selection was neutral for the trailing 12 months.

    3-Month Review

    • The Fund’s duration was slightly negative as yields fell sharply during the quarter.
    • Curve positioning contributed positively (~4 bps) to overall performance.
    • Sector allocation was the main contributor (~31 bps) with corporates and securitized exposures leading performance as spreads tightened for the period.
    • Security Selection was neutral for the trailing period.

    Current Positioning

    • The Fund’s now maintains a slight duration overweight. It was underweight duration (1.8 versus 1.9) last quarter.
    • The Fund’s yield curve has maintained is “barbelled” positioning (overweight 0-1 year and 3+ year) relative to the benchmark in anticipation of a continued flattening of the curve.
    • The Fund is overweight in non-Treasury sectors. The sub-adviser is focused on maintaining relative yield advantage by adding to higher quality issues in Financials and Industrial sectors.
  • Fund Fact Sheet

    PDF
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