Launched January 2020, our CRI International Small-Cap Fund now has a three-year track record. For investors seeking long-term capital appreciation, a consideration for this asset allocation design might be timely.
AN INTEGRATED MANAGERS STRATEGY WITH DIFFERENTIATED RETURN DRIVERS
Even though the international small-cap space represents a broad universe of companies, investment allocations to this area of the equity market are relatively low. As a result, most fund products in the space are single-manager funds, with many employing index-like approaches.
The International Small-Cap Fund integrates our CRI approach into the investment process and gains distinct diversification benefits by combining two active managers with complementary styles. In practice, the CBIS investment team allocates fund assets between Global Alpha Capital, whose approach typically produces a bias toward growth, and Lazard Asset Management, who employs a relative value investment style.
A POTENTIAL SOURCE OF VALUABLE DIVERSIFICATION
We know that over the past four-plus decades, stock market leadership has alternated between U.S. and non-U.S. equities several times. By definition, diversified portfolio means owning some assets that will perform well while others don’t. Over the long term, allocations to non-U.S. equities have enabled investors to benefit from periods of domestic stock underperformance by diversifying returns at the portfolio level.
The International Small-Cap Fund invests in a broad list of small-capitalization companies based in those countries included in the MSCI All Country World ex-US Small Cap Index. To meet the Fund’s objective, its sub-advisers look for stocks in that universe they believe have above-average market appreciation potential.
BOTTOM LINE
From its inception, the Fund’s broad geographical diversification and integrated management approach may have helped reduce the potential for short-term underperformance that could be encountered by a fund managed by a single manager. For more information, including a fact sheet and fund attribution, visit our Investment page here.
Important Information
Before investing you should carefully consider the new Catholic Responsible Investments Funds’ investment objectives, risks, charges and expenses. This and other information is available in the prospectus, or summary prospectus. Please read the prospectus carefully before you invest. The prospectus, or summary prospectus, can be obtained by calling 1-866-348-6466.
Mutual fund investing involves risk, including possible loss of principal. There can be no assurance that the Fund will achieve its stated objectives. Current and future holdings are subject to risk.
International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/ developing markets or in concentrations of single countries.
Diversification may not protect against market risk.
The MSCI ACWI ex-US Small Cap Index captures small cap representation across 22 of 23 Developed Markets (DM) countries (excluding the US) and 26 Emerging Markets (EM) countries.
The funds are distributed by SEI Investments Distribution Company (SIDCO). SIDCO is not affiliated with CBIS or any sub-advisers of the Funds.