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 12/31/2018

Trailing 3 Months 1 Year 3 Years 5 Years 10 Years
CUIT Short Bond Fund 0.71 1.41 1.7 1.46 2.4
Bloomberg Barclays 1-3 Year Treasury Index** 1.31 1.56 0.95 0.80 0.95
Calendar Year 2017 2016 2015 2014 2013
CUIT Short Bond Fund 1.71 1.99 0.81 1.37 0.84
Bloomberg Barclays 1-3 Year Treasury Index** 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.

Statistics Fund Index
Average Maturity (Yrs) 2.28 1.92
Effective Duration (Yrs) 1.77 1.86
Average Quality AA- TSY
Yield-to-Maturity 3.49% 2.52%
Current Yield 3.06% 2.07%
# of Securities 191 99
Fund Size $332.90MM
Effective Duration Fund Index
< 1 Year 33.6 3.8
1 - 3 Years 47.8 96.2
3 - 5 Years 15.5 0.0
5 - 7 Years 2.8 0.0
7 - 10 Years 0.3 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 31.0 100.0
Corporate 36.2 0.0
MBS 3.1 0.0
CMBS 9.9 0.0
ABS 19.1 0.0
Cash 0.8 0.0
Credit Quality Fund Index
AAA 57.6 100.0
AA 6.7 0.0
A 15.7 0.0
BBB 15.2 0.0
Below BBB 4.0 0.0
Cash 0.8 0.0
Risk Metrics Fund
(5 YR)
Index
(5 YR)
Standard Deviation 0.7 0.8
Tracking Error 0.4 0.0
Sharpe Ratio 1.8 0.3
Information Ratio 2.2 N/A
Upside Capture 124.3 100.0
Downside Capture 4.7 100.0
  • Q4 2018 Performance Review

    12-Month Review

    • The Fund’s shorter than benchmark duration (1.8 vs. 1.9) contributed ~ 20 bps of the Fund’s outperformance as the Federal Reserve increased shortterm rates for the fourth time in 2018.
    • Over the trailing period, the yield curve steepened on the front end which contributed ~ 17bps of value add to the fund.
    • Sector exposure was the main detractor (-14 bps) as Financials, CMBS and ABS exposure weakened results for the period.
    • Security selection was essentially neutral for the trailing twelve months.

    3-Month Review

    • The Federal Reserve increased the fed funds target range to 2.25-2.50% based on confidence in U.S. economic growth. The rate change came despite financial market worries and political pressure to suspend rate increases.
    • In a reversal from the previous quarter, the Fund’s shorter duration (1.8 vs. 1.9) detracted from results (-7bps) as capital markets experienced record levels of volatility
    • Yield curve positioning contributed ~ 10 bps as rates rose on the front end of the curve.
    • Sector exposure was the main detractor during the period (-53 bps) as investors led a flight to quality across most spread sectors. In particular,
      Industrials, Financials, CMBS and MBS reduced returns as for the period.
    • Security selection was neutral for the trailing period.

    Current Positioning

    • The Fund’s effective duration remains shorter relative to benchmark (1.8 years vs 1.9 years) as the sub-adviser remains cautious about expectations of future Federal Funds increases in 2019.
    • Given the defensive posture of the Fund, the sub-adviser is focused on maintaining relative yield advantage by adding to higher quality issues in Industrials and Financial sectors.
    • In the securitized sector, the sub-adviser continues to favor the relative value attractiveness of ABS and CMBS as both sectors tend to have more stable cash flows.
    • The sub-adviser remains constructive on select high-yield exposures within industrials. Exposure hovered at approximately 4.0% of the Fund’s total assets. However, the sub-advisor will continue to seek opportunities given the recent spread widening towards the end of 2018.
  • Fund Fact Sheet

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