Overview
The Catholic Responsible Investments Bond Fund seeks current income and long-term capital appreciation. The Fund invests primarily in U.S. government and agency securities, corporate bonds, and mortgage- and asset-backed securities. It is categorized as a U.S. core fixed income fund.
This update impacts the following Catholic Responsible Investments Funds:
- Bond
- Magnus 45/55
- Magnus 75/25
- Magnus 60/40 Alpha Plus
- Magnus 60/40 Beta Plus
Portfolio Review
Fixed income markets have experienced a significant shift in the interest rate environment compared to the period following the Global Financial Crisis. Central banks have moved away from policies of near-zero or negative real interest rates toward more traditional approaches to managing inflation.
In this environment, volatility is expected to be driven more by changing sector valuations and security pricing than by large movements in interest rates. The Catholic Responsible Investments Committee believes that adjustments to the portfolio can improve how the Fund navigates these conditions.
Enhancements to Portfolio Construction
To address these changes, the Fund is adding Loomis, Sayles & Company, L.P. as a sub-adviser. This addition is intended to enhance the Fund’s ability to manage sector allocation and credit exposure across varying market conditions.
Loomis Sayles brings experience in navigating different segments of the credit spectrum, which is expected to improve the Fund’s ability to respond to ongoing market volatility.
Integrated Strategies Summary
Loomis Sayles employs a comprehensive investment approach that combines top-down macroeconomic analysis with bottom-up security selection. Macroeconomic teams develop views on the economy and asset allocation, while sector specialists focus on detailed credit research and individual security selection.
The firm’s structure promotes collaboration across portfolio managers, analysts, and traders, allowing for multiple perspectives in evaluating investment opportunities. This integrated process provides checks and balances and supports disciplined portfolio construction.
Investment Approach
The addition of Loomis Sayles is designed to strengthen diversification and enhance the Fund’s ability to manage risk across different market environments. By incorporating a manager with deep credit expertise and sector flexibility, the Fund aims to improve overall portfolio resilience and return consistency.
Important Information
Carefully consider the funds’ investment objectives, risks, 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.