Objective

Current income and long-term capital appreciation

Strategy

Uses top down macroeconomic analysis, along with fundamental industry and company research, to capture inefficiencies in the valuation of sectors and individual securities; this is combined with duration management (+/– 20% of the benchmark) in pursuit of above-benchmark returns over a full market cycle.

Fund Facts
Asset Manager
  • Brandywine Global Investment Management(Since 2/28/19)
  • Dodge & Cox, Inc.(Since 1/1/95)
  • Ryan Labs Asset Management(Since 2/28/19)
Benchmark Barclays Capital Aggregate Bond Index
Fund Inception Date Class A: January 1, 1995; Class B: January 1, 2003
Mimimum Investment Class A: No minimum; Class B: $5 million
Expense Ratio Class A: 0.53%; Class B: 0.38%

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

Trailing 3 Months 1 Year 3 Years 5 Years 10 Years
CUIT Intermediate Diversified Bond Fund Class A 2.8 4.09 2.23 2.62 5.16
CUIT Intermediate Diversified Bond Fund Class B 2.87 4.2 2.39 2.78 5.32
Barclays Capital Aggregate Bond Index 2.94 4.48 2.03 2.74 3.77
Calendar Year 2018 2017 2016 2015 2014 2013
CUIT Intermediate Diversified Bond Fund Class A 0.00 3.38 3.53 -0.13 5.65 -1.73
CUIT Intermediate Diversified Bond Fund Class B 0.14 3.54 3.69 -0.05 5.81 -1.51
Barclays Capital Aggregate Bond Index 0.01 3.54 2.65 0.55 5.97 -2.02

Characteristics as of 12/31/2018

Statistics Fund Index
Average Maturity (Yrs) 7.99 8.27
Effective Duration (Yrs) 5.42 5.84
Average Quality AA AA
Yield-to-Maturity 3.3% 3.3%
Current Yield 3.4% 3.2%
# of Securities 719 10,248
Fund Size $1,160.8MM
Effective Duration Fund Index
< 1 Year 7.2 0.9
1 - 3 Years 36.4 23.9
3 - 5 Years 19.0 31.1
5 - 7 Years 21.4 22.7
7 - 10 Years 6.9 7.1
10 - 20 Years 9.0 14.3
> 20 Years 0.0 0.0
Market Sector Analysis Fund Index
Treasury and Gov’t Related 40.1 44.8
Corporate 31.1 24.6
MBS 21.8 28.2
CMBS 1.3 1.9
ABS 4.2 0.5
Cash 1.5 0.0
Credit Quality Fund Index
AAA 64.6 72.5
AA 5.2 3.7
A 9.7 10.1
BBB 16.8 13.7
Below BBB 2.3 0.0
Cash 1.5 0.0
Risk Metrics Fund
(5 YR)
Index
(5 YR)
Standard Deviation 2.7 2.8
Tracking Error 0.6 N/A
Sharpe Ratio 0.9 0.7
Information Ratio 0.8 N/A
Upside Capture 101.3 10.0
Downside Capture 84.3 100.0
  • Q4 2018 Performance Review

    12-Month Review

    • The Fund’s shorter than benchmark duration (5.4 vs 5.8 yrs.) was responsible for the majority of the Fund’s outperformance for the period (+29 bps).
    • Curve positioning was neutral.
    • Sector exposure was a modest detractor (-6 bps) for the period. The Fund’s overweight to corporates (31.5% vs. 25.2%) was primarily responsible.
    • Security selection added (+12 bps) due largely to corporate financials-banks and insurance companies (+13bps) and industrial holdings-consumer cyclicals (+16bps). Offsetting was MBS passthroughs (-18bps).

    3-Month Review

    • The Fund’s shorter than benchmark duration positioning was the largest performance detractor for the quarter (-17 bps) as interest rates declined.
    • Curve positioning for the period was neutral.
    • Sector allocation for the period was neutral.
    • Security selection added (+4 bps) for the quarter. Corporate Financials and Industrials were additive, MBS Passthroughs detracted.

    Current Positioning

    • The Fund continues to maintain a defensive duration position (5.4 vs 5.8) given the prospect for rising rates through 2019. The managers have made comments that they may look to soften the current defensive duration positioning in 2019.
    • The corporates overweight (+6%) is based on continued strong corporate fundamentals.
    • The securitized sector (MBS Passthroughs) is the largest underweight. The sub-advisers view is that the mortgage pass-through sector is not particularly attractive as current spreads do not compensate an investor for the risks.
    • Significant US Treasury overweight (46.8% vs 38.4%) but US Agencies are underweight.
    • High yield credit has a relatively low allocation (2.3%) this given valuation levels and sub-adviser views. The allocation has been at about this level
      for over a year.
  • Fund Fact Sheet

    PDF
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