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 12/31/2019

Trailing 3 Months 1 Year 3 Years 5 Years 10 Years
CUIT Short Bond Fund 0.54 4.14 2.41 2.01 2.08
Bloomberg Barclays 1-3 Year Treasury Index** 0.51 3.59 1.85 1.39 1.22
Calendar Year 2019 2018 2017 2016 2015 2014
CUIT Short Bond Fund 4.14 1.41 1.71 1.99 0.81 1.37
Bloomberg Barclays 1-3 Year Treasury Index** 3.59 1.56 0.42 0.86 0.54 0.62

 

Source: BNY Mellon, SS&C

** 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 12/31/2019

Statistics Fund Index
Average Maturity (Yrs) 2.3 1.9
Effective Duration (Yrs) 2.0 1.8
Average Quality AA- TSY
Yield-to-Maturity 2.3% 1.6%
Current Yield 2.8% 1.8%
# of Securities 209 94
Effective Duration Fund Index
< 1 Year 26.1 3.9
1 - 3 Years 52.5 96.1
3 - 5 Years 19.4 0.0
5-7 Years 2.0 0.0
7-10 Years 0.0 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 35.5 100
Corporate 31.8 0.0
MBS 2.9 0.0
CMBS 11.1 0.0
ABS 17.7 0.0
Cash 1.0 0.0
Credit Quality Fund Index
AAA 59.8 100.0
AA 4.9 0.0
A 15.3 0.0
BBB 15.7 0.0
Below BBB 3.3 0.0
Cash 1.0 0.0
Risk Metrics Fund
(5 YR)
Index
(5 YR)
Standard Deviation 0.8 0.9
Tracking Error 0.4 N/A
Sharpe Ratio 1.6 0.4
Information Ratio 2.2 N/A
Upside Capture 115.1 100.0
Downside Capture -7.7 100.0

 

 

Source: FactSet, eVestment

  • Q4 2019 Performance Review

    12-Month Review

    • Duration positioning detracted.
    • Curve positioning was neutral.
    • Sector allocation was the main driver of outperformance and driven primarily by the Fund’s holdings in CMBS, Financial Institutions and Industrials.
    • Security selection was neutral for the trailing twelve months.

    3-Month Review

    • The Fund’s duration positioning was neutral.
    • Curve positioning detracted.
    • Sector allocation was the main contributor with Corporates and securitized exposures leading performance.
    • Security selection was neutral.

    Current Positioning

    • The Fund maintains a slight duration overweight.
    • The Fund has maintained its “barbelled” positioning relative to the benchmark in anticipation of a continued flattening of the yield curve.
    • The Fund is overweight non-Treasury sectors. High yield exposure has remained around 5% recently and stands at 3% on December 31st. Those holdings are focused primarily in BB and B rated securities.

 

All attribution is based on gross portfolio performance.

  • Fund Fact Sheet

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