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 0.33%

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 09/30/2019

Trailing 3 Months 1 Year 3 Years 5 Years 10 Years
CUIT Short Bond Fund 0.75 4.32 2.15 1.96 2.09
Bloomberg Barclays 1-3 Year Treasury Index** 0.58 4.43 1.52 1.32 1.18
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 06/30/2019

Statistics Fund Index
Average Maturity (Yrs) 2.2 1.9
Effective Duration (Yrs) 1.9 1.8
Average Quality AA- TSY
Yield-to-Maturity 2.7% 1.8%
Current Yield 3.0% 2.1%
# of Securities 205 95
Effective Duration Fund Index
< 1 Year 33.6 3.6
1 - 3 Years 41.7 96.4
3 - 5 Years 23.1 0.0
5-7 Years 1.4 0.0
7-10 Years 0.2 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 32.5 100.0
Corporate 37.6 0.0
MBS 1.7 0.0
CMBS 11.8 0.0
ABS 16.1 0.0
Cash 0.3 0.0
Credit Quality Fund Index
AAA 56.5 100.0
AA 5.1 0.0
A 17.4 0.0
BBB 13.4 0.0
Below BBB 7.3 0.0
Cash 0.3 0.0
Risk Metrics Fund
(5 YR)
Index
(5 YR)
Standard Deviation 0.8 0.9
Tracking Error 0.4 N/A
Sharpe Ratio 1.7 0.4
Information Ratio 2.0 N/A
Upside Capture 118.7 100.0
Downside Capture 10.9 100.0
  • Q2 2019 Performance Review

    12-Month Review

    • The Fund ended the quarter with slightly shorter than benchmark duration; but overall duration positioning detracted relative performance.
    • Curve positioning contributed to the fund.
    • Sector allocation was additive due primarily to the Fund’s securitized allocation.
    • Security selection was neutral for the trailing twelve months

    3-Month Review

    • The Fund’s duration was negative as yields fell significantly during the quarter.
    • Curve positioning was neutral to overall performance.
    • Sector allocation was the main contributor with Corporates and securitized exposures leading performance as spreads tightened.
    • Security selection was neutral for the trailing period.

    Current Positioning

    • The Fund maintains a slight duration underweight.
    • The Fund has maintained a “barbelled” positioning relative to the benchmark in anticipation of a continued flattening of the curve.
    • The Fund is overweight in non-Treasury sectors. High yield exposure increased recently from
      4% to roughly 7% of the Fund’s total assets; those holdings are focused primarily in BB and
      B rated securities.
  • Fund Fact Sheet

    PDF
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