Objective
Preserve capital while providing current income in excess of cash market yields with moderate emphasis on capital appreciation.
Strategy
Focuses on sector allocation and security selection, coupled with a top-down macroeconomic risk management process; aimed at minimizing downside risk while maximizing income potential.
| Fund Facts | |
|---|---|
| Asset Manager |
|
| Benchmark | Bloomberg Barclays 1-3 Year Treasury Index |
| Fund Inception Date | January 1, 1985 |
| Mimimum Investment | No minimum investment required |
| Expense Ratio | 0.34% |
Additional Facts
The Fund’s benchmark was changed to the Barclays Capital 1-3 Year Treasury Index effective July 1, 2016. The benchmark performance shown reflects the linked performance of the following benchmarks for each applicable period: ML 1-3 Yr Treasury Index effective 7/1/01; ML 1-5 Yr G/C Index effective 4/1/98; 50% LB Intermediate Government /50% LB 1-3 Yr Government effective 5/1/96; LB 1-3 Yr Government in prior periods.
Annual Average Total Returns
(%) as of 03/31/2019
| Trailing | 3 Months | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|---|
| CUIT Short Bond Fund | 1.31 | 2.8 | 1.87 | 1.61 | 2.34 |
| Bloomberg Barclays 1-3 Year Treasury Index** | 0.99 | 2.73 | 0.98 | 0.97 | 1.04 |
| Calendar Year | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|
| CUIT Short Bond Fund | 1.41 | 1.71 | 1.99 | 0.81 | 1.37 | 0.84 |
| Bloomberg Barclays 1-3 Year Treasury Index** | 1.56 | 0.42 | 0.86 | 0.54 | 0.62 | 0.36 |
** Effective July 1, 2016, the benchmark for the CUIT Short Bond Fund (SBF) was changed to the Bloomberg Barclays 1-3 Year Treasury Index. For periods prior to July 1, 2016, the applicable benchmarks were: ML 1-3 Yr Treasury Index effective 7/1/01; ML 1-5 Yr G/C Index effective 4/1/98; 50% LB Intermediate Government /50% LB 1-3 Yr Government effective 5/1/96; LB 1-3 Yr Government in prior periods. The benchmark performance shown for SBF in this presentation reflects the linked performance of these benchmarks for each applicable period.
Characteristics as of 03/31/2019
| Statistics | Fund | Index |
|---|---|---|
| Average Maturity (Yrs) | 2.2 | 1.9 |
| Effective Duration (Yrs) | 1.9 | 1.9 |
| Average Quality | AA- | TSY |
| Yield-to-Maturity | 3.1% | 2.3% |
| Current Yield | 2.9% | 2.1% |
| # of Securities | 195 | 98 |
| Fund Size | $338.9MM | |
| Effective Duration | Fund | Index |
|---|---|---|
| < 1 Year | 27.6 | 3.6 |
| 1 - 3 Years | 49.5 | 96.4 |
| 3 - 5 Years | 19.9 | 0.0 |
| 5 - 7 Years | 2.6 | 0.0 |
| 7 - 10 Years | 0.4 | 0.0 |
| 10 - 20 Years | 0.0 | 0.0 |
| > 20 Years | 0.0 | 0.0 |
| Market Sector Analysis | Fund | Index |
|---|---|---|
| Treasury and Gov’t Related | 35.7 | 100.0 |
| Corporate | 33.8 | 0.0 |
| MBS | 1.9 | 0.0 |
| CMBS | 9.8 | 0.0 |
| ABS | 18.1 | 0.0 |
| Cash | 0.7 | 0.0 |
| Credit Quality | Fund | Index |
|---|---|---|
| AAA | 59.2 | 100.0 |
| AA | 6.0 | 0.0 |
| A | 15.8 | 0.0 |
| BBB | 15.2 | 0.0 |
| Below BBB | 3.0 | 0.0 |
| Cash | 0.7 | 0.0 |
| Risk Metrics | Fund (5 YR) |
Index (5 YR) |
|---|---|---|
| Standard Deviation | 0.7 | 0.8 |
| Tracking Error | 0.4 | 0.0 |
| Sharpe Ratio | 1.7 | 0.3 |
| Information Ratio | 2.1 | N/A |
| Upside Capture | 121.8 | 100.0 |
| Downside Capture | 7.1 | 100.0 |
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Q1 2019 Performance Review
12-Month Review
- The Fund’s slightly longer than benchmark duration (1.9 vs. 1.85) contributed ~ 7 bps of the Fund’s outperformance as rates declined for the period.
- Curve positioning contributed ~ 22bps of value add to the fund.
- Sector allocation was additive due primarily to the fund’s securitized allocation (+18 bps). Specifically, CMBS and ABS were the largest contributors to results.
- Security selection was neutral for the trailing 12 months.
3-Month Review
- The Fund’s duration was slightly negative as yields fell sharply during the quarter.
- Curve positioning contributed positively (~4 bps) to overall performance.
- Sector allocation was the main contributor (~31 bps) with corporates and securitized exposures leading performance as spreads tightened for the period.
- Security Selection was neutral for the trailing period.
Current Positioning
- The Fund’s now maintains a slight duration overweight. It was underweight duration (1.8 versus 1.9) last quarter.
- The Fund’s yield curve has maintained is “barbelled” positioning (overweight 0-1 year and 3+ year) relative to the benchmark in anticipation of a continued flattening of the curve.
- The Fund is overweight in non-Treasury sectors. The sub-adviser is focused on maintaining relative yield advantage by adding to higher quality issues in Financials and Industrial sectors.
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Fund Fact Sheet
PDF