Objective

Long-term capital appreciation

Strategy

Combines three sub-advisers with complementary growth- and value-oriented investment processes to produce competitive risk adjusted returns.

Fund Facts
Asset Manager
  • Causeway Capital(Since 2/1/05)
  • Principal Global Investors(Since 5/18/07)
  • WCM Investment Management(Since 9/23/15)
Benchmark MSCI All Country World Index ex-U.S. (ACWI ex-U.S.)
Fund Inception Date Class A: January 1, 1995; Class B: March 1, 2000
Mimimum Investment Class A: No minimum and Class B: $5 million
Expense Ratio Class A: 1.40%; Class B: 0.98%

Additional Facts

The Fund’s benchmark was changed to MSCI All Country World Index (ACWI) ex-U.S. effective June 1, 2015. The benchmark performance shown reflects the linked performance of the prior benchmark (MSCI EAFE) through May 31, 2015 and MSCI ACWI ex-U.S. after June 1, 2015.

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

Trailing 3 Months 1 Year 3 Years 5 Years 10 Years
CUIT International Equity Fund Class A 11.33 -5.57 8.29 2.79 9.39
CUIT International Equity Fund Class B 11.45 -5.11 8.76 3.22 9.84
MSCI ACWI-ex U.S. ‡ 10.44 -3.74 8.61 3.1 9.62
Calendar Year 2018 2017 2016 2015 2014 2013
CUIT International Equity Fund Class A -15.93 30.47 2.35 -2.82 -5.11 22.03
CUIT International Equity Fund Class B -15.53 31.04 2.75 -2.45 -4.72 22.49
MSCI ACWI-ex U.S. ‡ -13.78 27.77 5.01 -3.81 -4.49 23.30

‡ Effective June 1, 2015, the benchmark for the International Equity Fund was changed to the Morgan Stanley Capital International All Country World ex U.S. Index (“ACWI ex U.S.”). For periods prior to June 1, 2015, the applicable benchmark was the Morgan Stanley Capital International Europe, Australia and the Far East Index (“EAFE”). The benchmark performance shown in this presentation reflects the linked performance of the two benchmarks for the respective applicable periods.

Characteristics as of 12/31/2018

Statistics Data Fund Index
Weighted Median Market Cap $30.9B $30.08B
Price/Book 1.7x 1.5x
Price/Earnings 13.5x 12.1x
Return on Equity 18.6% 15.7%
Dividend Yield 2.9% 3.4%
5-year Earnings Growth 13.6% 9.5%
Beta 1.0 1.0
Active Share 0.8 N/A
10 Largest Holdings 17.51 4.84
# of Equity Securities 372 2,136
Turnover Rate 42.8 N/A
Fund Size $652.4MM
Market Sector Analysis Fund Index
Communication Services 6.3 7.6
Consumer Discretionary 12.3 10.6
Consumer Staples 9.5 9.9
Energy 5.2 7.3
Financials 19.2 22.2
Healthcare 5.5 8.4
Industrials 13.2 11.7
Information Technology 13.8 8.0
Materials 8.9 7.7
Real Estate 0.7 3.4
Utilities 1.5 3.4
Cash 3.7 0.0
Geographic Distribution Fund Index
United Kingdom 17.3 11.4
France 7.3 7.5
Germany 7.2 6.0
Japan 9.6 16.6
USA* 8.9 0.0
Canada 6.0 6.5
Other Europe 17.5 16.1
Developed Asia 3.4 8.4
Emeg. Mkts Asia 15.6 19.1
Other Emeg. Mkts 4.5 6.9
Risk Metrics Fund
(5 YR)
Index
(5 YR)
Standard Deviation 11.7 11.8
Tracking Error 2.6 N/A
Sharpe Ratio 0.1 0.1
Information Ratio 0.4 N/A
Upside Capture 96.8 100.0
Downside Capture 92.2 100.0
Top Ten Holdings %
Tencent Holdings Ltd. 2.30
Nestle S.A. 2.20
Taiwan Semiconductor Manufacturing Co., Ltd. 2.02
Volkswagen AG 1.65
LVMH Moet Hennessy Louis Vuitton SE 1.64
Keyence Corporation 1.61
HDFC Bank Limited 1.6
Linde Plc 1.59
Canadian Pacific Railway Limited 1.46
Prudential Plc 1.44
  • Q4 2018 Performance Review

    12-Month Review

    • The Fund‘s relative return was marginally positive at the third quarter end; unfortunately, the weak 4th quarter brought the fund’s excess return for the year into negative territory.
    • In Energy, two fund holdings detracted a combined 64 basis points from the fund’s relative performance.
    • Disappointing results in the fund’s machinery holdings drove most of the performance deficit within Industrials.
    • On the positive side, strong relative performance among stocks in Apparel, Accessories and Luxury Goods contributed largely to the +54 bps of excess return generated in Consumer Discretionary stock selection.

    3-Month Review

    • All three sub-advisors fell short of the benchmark in the environment of broad based declines in valuations. 7 of the 11 major sector groupings suffered double digit losses in value, the worst being energy stocks at -16.2%.
    • The fact that all three sub-advisors struggled in the same market environment will be a topic for more detailed analysis and explanations in the quarterly manager calls.
    • The fund’s specific holdings in Energy did significantly worse in the Fund’s quarter relative to the sector average in the index (-26.9% return vs. -16.2%
      respectively). That differential contributed -73 bps to IEF’s excess return in Q4.
    • Stock selection in Financials, Healthcare and Industrials were also notably weak in Q4, each contributing more than -30 bps toward the fund’s performance deficit.
    • The Information Technology sector contributed a total -51 bps of negative relative return in the quarter through both an overweight to a relatively weak performing sector and via individual holdings that did not keep pace with their sector peers on average.

    Current Positioning

    • The Fund’s positioning is relatively stable quarter to quarter. Within the developed markets portion of the fund, positioning is determined by the composite bottom up research driven security selection of the three sub-advisors.
    • The Fund has 372 securities and a modest growth tilt relative to its MSCI ACWI ex US benchmark index. The fund’s P/E and P/B ratios are slightly higher, and its dividend yield is lower than the index.
    • The Fund currently has 80% of its market value invested in developed nation securities and 20% in emerging markets. The corresponding weights in the index are 74% and 26% respectively. Significant variations from the benchmark include the fund’s 6% overweight in UK domiciled companies and its 7% underweight to Japan.
    • Like recent quarters, IEF’s sector weightings currently include a nearly 6% overweight in Information Technology and much more modest overages in the Fund’s Consumer Discretionary and Industrials. The largest sector underweights are -3.0% in Financials and -2.9% in Healthcare stocks.
  • Fund Fact Sheet

    PDF
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