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.

Growth of $10,000
Inception Date: January 1, 1985

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

Trailing 3 Months 1 Year 3 Years 5 Years 10 Years
CUIT Short Bond Fund 0.47 0.78 1.40 1.44 2.35
Bloomberg Barclays 1-3 Year Treasury Index** 0.19 -0.04 0.36 0.55 1.08
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) 2.1 1.9
Effective Duration (Yrs) 1.7 1.9
Average Quality AA- TSY
Yield-to-Maturity 3.4% 2.8%
Current Yield 3.1% 2.0%
# of Securities 181 97
Fund Size $336.3MM
Effective Duration Fund Index
< 1 Year 37.0 3.8
1 - 3 Years 49.1 96.2
3 - 5 Years 11.4 0.0
5 - 7 Years 2.2 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 30.1 100.0
Corporate 36.6 0.0
MBS 3.5 0.0
CMBS 9.2 0.0
ABS 18.6 0.0
Cash 1.9 0.0
Credit Quality Fund Index
AAA 53.8 100.0
AA 7.4 0.0
A 13.9 0.0
BBB 18.9 0.0
Below BBB 4.1 0.0
Cash 1.9 0.0
Risk Metrics Fund Index
Standard Deviation 0.6 0.7
Tracking Error 0.4 N/A
Sharpe Ratio 2.0 0.1
Information Ratio 2.9 N/A
Upside Capture 144.3 100.0
Downside Capture 4.4 100.0
  • Q2 2018 Performance Review

    The CUIT Short Bond Fund returned 0.28% versus the Bloomberg Barclays 1-3 Year Treasury Index’s 0.21% return.

    3-MONTH REVIEW

    • Over the 3-month period, the Fund’s strongest source of return was its shorter relative duration to the benchmark (1.7 vs. 1.9). The combination of sector and security selection also added modestly to overall performance.
    • For the trailing 12-months, the Fund’s combined allocation to corporates and securitized bonds were the largest contributors to outperformance. Allocations to financials, industrials, asset backed and commercial mortgage backed securities were additive. Shorter duration and curve positioning added to overall performance as yields increased on the front end of the curve.
    • The Fund maintains duration slightly below the benchmark in anticipation of the Fed’s desire to raise rates. The portfolio maintains ~4% exposure to high-yield bonds; the sub-advisor will continue to emphasize upgrade and take-out opportunities within the industrial sector.

    12-MONTH REVIEW

    • The Fund’s combined allocation to corporates and securitized bonds was the strongest sources of excess return (~61 bps) over the all-Treasury index. Allocations to CMBS, ABS, industrials, and financials were the largest contributors to performance.
    • Duration and curve positioning together added ~45 bps to support results as yields increased on the front end of the curve.
    • Security selection produced a small positive impact (+3 bps) to the fund.
  • Fund Fact Sheet

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