Objective

Long-term capital appreciation

Strategy

Focus on mid- and large-cap stocks that exhibit sustainable, above-average earnings growth; blends a quantitative manager that seeks to identify key investment risks and capture alpha through dynamic modeling with a bottom-up fundamental manager to deliver a portfolio with balanced growth, valuation, and quality attributes.

Fund Facts
Asset Manager
  • Wellington Management(Since 12/31/04)
  • Los Angeles Capital Management(Since 4/1/09)
Benchmark Russell 1000 Growth Index
Fund Inception Date Class A: January 1, 1991; Class B: January 1, 2003
Mimimum Investment Class A: No minimum; Class B: $5 million
Expense Ratio Class A: 1.16%; Class B: 0.86%

Annual Average Total Returns
(%) as of 03/31/2019

Trailing 3 Months 1 Year 3 Years 5 Years 10 Years
CUIT Growth Fund Class A 16.29 13.86 15.02 12.34 16.31
CUIT Growth Fund Class B 16.38 14.2 15.36 12.7 16.67
Russell 1000 Growth Index **** 16.1 12.75 16.53 13.5 17.52
Calendar Year 2018 2017 2016 2015 2014 2013
CUIT Growth Fund Class A -0.45 25.38 5.37 5.29 11.65 32.92
CUIT Growth Fund Class B -0.16 25.77 5.69 5.63 12.06 33.31
Russell 1000 Growth Index **** -1.51 30.21 7.08 5.67 13.05 33.49

**** Benchmark Index: Russell 1000 Growth Index effective June 1, 2000; prior to this date, historical returns reflect Russell Mid-Cap Growth Index.

Characteristics as of 12/31/2018

Statistics Fund Index
Weighted Median Market Cap $84.3B $97.8B
Price/Book 6.0x 6.0x
Price/Earnings 25.9x 22.8x
Return on Equity 25.2% 25.1%
Dividend Yield 1.2% 1.4%
5-year Earnings Growth 10.0% 13.0%
Beta 0.9 1.0
10 Largest Holdings 36.5 29.5
# of Equity Securities 205 546
Turnover Rate 91.6 N/A
Fund Size $244.8MM
Market Sector Analysis Fund Index
Communication Services 10.4 11.9
Consumer Discretionary 17.6 15.1
Consumer Staples 5.6 6.0
Energy 0.8 0.8
Financials 5.1 4.4
Healthcare 11.6 14.3
Industrials 7.7 11.8
Information Technology 35.3 31.5
Materials 1.0 1.8
Real Estate 3.5 2.3
Utilities 0.0 0.0
Cash 1.5 0.0
Risk Metrics Fund
(5 YR)
Index
(5 YR)
Standard Deviation 11.5 12.0
Tracking Error 1.6 N/A
Sharpe Ratio 1.0 N/A
Information Ratio 0.0 N/A
Upside Capture 95.8 100.0
Downside Capture 94.2 100.0
Top Ten Holdings %
Microsoft Corporation 7.50
Alphabet Inc. 6.67
Apple Inc. 5.20
Amazon.com, Inc. 4.27
Visa Inc. 2.7
Home Depot, Inc. 2.39
Mastercard Incorporated 2.10
McDonald's Corporation 1.72
Clorox Company 1.54
Stryker Corporation 1.52
  • Q4 2018 Performance Review

    12-Month Review

    • Despite the sharp declines in valuations over the past three months, US Large Cap Growth stocks were still the best performing sub-asset class within equities when measured over the 12 month period.
    • More than half of the Fund’s 2018 excess return came from the Information Technology sector. Overweight to the sector added 48 bps and security mix within IT added 99 bps relative to the benchmark.
    • Stock selection was also notably strong in health care and again both sub-advisors contributed positively. The relative performance impact from pharmaceuticals holdings was minimal in 2018. Positive stock selection results were prominent in biotech and equipment and supply companies.
    • On the negative side, within Industrials a handful of machinery company stocks contributed to the total -49 bps contribution to relative return from the sector holdings.

    3-Month Review

    • The Russell 1000 Growth index return was -15.9% for the last quarter of 2018.
    • Information technology stocks, the largest component of both the fund and its benchmark index, had average returns of -18.8% in Q4. Included in IT is Apple, which has a weight of more than 7% of the total Russell 1000 Growth index. Apple’s return in Q4 was -29.9%. The fund’s holding in Apple averaged 6.4%; the underweight generated +19 bps.
    • Microsoft, at 6.2% of the index, is another huge individual holding. Its return of -10.8% for the quarter was better than sector peers. The fund’s modest overweight in Microsoft also added value in Q4, albeit only 5 bps.
    • In aggregate, stock selection was positive in nine of the ten major sectors, though other than the +59 bps gained in IT, nothing large stands out among the other sectors.

    Current Positioning

    • Although the two sub-advisors utilize very different investment philosophies and portfolio construction techniques, both are currently keeping sector weights fairly close to the benchmark index. Historically both managers have had low tracking error and therefore the fund is a very low tracking error product relative to peers.
    • Both managers aim to add 75% or more of their excess return through specific stock selection within sectors
    • Among Growth oriented equity managers, the Funds sub-advisors also place a premium on companies that are reasonably valued. As such, the fund should provide some downside protection in rapidly declining markets.
    • The +2.6% relative weighting to Information technology stocks is the fund’s largest overweight. Industrials and Communications Services are both underweight relative to the index by -2.7%.
  • Fund Fact Sheet

    PDF
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