Overview
The Catholic Responsible Investments Multi-Style U.S. Equity Fund seeks long-term capital appreciation by investing primarily in a diversified portfolio of mid- to large-cap U.S. equities, generally within the Russell 1000 Index. The strategy focuses on companies believed to have above-average growth potential.
This update impacts the following Catholic Responsible Investments Funds:
- Multi-Style U.S. Equity
- Magnus 45/55
- Magnus 75/25
- Magnus 60/40 Alpha Plus
Portfolio Review
CBIS equity funds follow a philosophy of allocating capital to sub-advisers with strong core competencies, long-term conviction, and disciplined investment approaches. These managers are expected to maintain focus through short-term market volatility while pursuing long-term results.
In a recent review, the Catholic Responsible Investments Committee determined that the Fund’s return and risk characteristics could be improved. Areas identified for enhancement included upside and downside capture ratios and overall quality of returns.
Enhancements to Portfolio Construction
To improve outcomes, the Fund is being enhanced through the addition of three new sub-advisers:
William Blair Investment Management, LLC
Added to provide exposure to high-quality growth companies, focusing on businesses with strong structural advantages and above-average earnings growth potential.
Boston Partners Global Investors, Inc.
Added to introduce a fundamental, relative value approach, emphasizing disciplined stock selection and diversification benefits.
T. Rowe Price Associates, Inc.
Added as a fundamentally driven, risk-managed strategy leveraging deep research capabilities and a best-ideas portfolio approach to enhance overall risk management.
Together with existing manager Mar Vista Investment Partners, the Fund aims to combine complementary return drivers and improve diversification and consistency of results.
Portfolio Reconstruction and Allocation
The portfolio has been restructured to remove overlapping strategies and better balance risk exposures across managers. The updated allocation is designed to combine high active share strategies with a lower-risk component for improved portfolio efficiency.
Current Allocation (as of July 18, 2024):
Boston Partners Global Investors – 35%
Mar Vista Investment Partners – 30%
William Blair Investment Management – 20%
T. Rowe Price Associates – 15%
Prior Allocation:
Dodge & Cox – 34%
Mar Vista Investment Partners – 33%
Wellington Management – 33%
Investment Approach
The revised structure emphasizes diversification across multiple investment styles, including growth, value, and risk-managed strategies. By combining managers with distinct approaches, the Fund seeks to enhance risk-adjusted returns and improve overall portfolio construction.
Important Information
Carefully consider the funds’ investment objectives, risks, and charges and expenses. This and other information can be found in the funds’ full and summary prospectus, which may be obtained by visiting www.cbisonline.com or by calling 1-866-348-6466. Please read the prospectus carefully before investing.
Investing involves risk, including loss of principal. Asset allocation does not guarantee protection against market risk. There is no guarantee that these strategies will result in positive performance.
Catholic Responsible Investment is designed to align financial returns with the teachings of the Roman Catholic Church. Investment decisions may exclude or sell companies that conflict with these criteria, which could impact performance. Funds may underperform those that do not apply these guidelines.
The funds are distributed by SEI Investments Distribution Co., which is not affiliated with CBIS, the adviser, or the sub-advisers.