2Q 2018 Investment Portfolio Review€¦ · Key Highlights: Market Overview page 2 Investment Program Offerings page 9 CUIT Fund’s Performance page 10 CUIT Fund Reports page 11

Christian Brothers Investment Services, Inc. n [email protected] PAGE 1

2Q 2018

Investment Portfolio Review

LEADING CATHOLIC INSTITUTIONAL

INVESTMENT MANAGER

} Over $7 billion in assets under management

} Exclusively serve Catholic institutions

} Founded and owned by the De La Salle Christian Brothers

PIONEERED CATHOLIC RESPONSIBLE

INVESTINGSM

} Thoughtful and disciplined Catholic investment screens

} Encourage companies to improve policies and practices through active ownership

DIVERSIFIED INVESTMENT PROGRAMS

} Manager of managers } Institutional pooled funds

and separate accounts

UNIFY FAITH AND FINANCE

} Align investments with mission

DIVERSE RANGE OF NEEDS

} Portfolio services for a range of institutions

} Single- and multi-product relationships with institutions and their consultants

GLOBAL INVESTOR BASE

} Religious Institutes } Dioceses } Education } Healthcare

CBIS helps Catholic organizations achieve their financial goals through the socially responsible management of their investments.

BY PRODUCT TYPE ($MILLION)

BY CUIT TYPE ($MILLION)

Separate Accounts $603Global Funds PLC (UCITS) $673CUIT Funds $6,161

Money MarketOpportunistic BondBalancedCore IndexValue

Short bondInt. Diversified BondSmall capGrowthInternational

CBIS Asset Review

$7.4 BILLION IN TOTAL ASSETS

UNDER MANAGEMENT (6/30/18)

1%

6%

20%

5%6%

5%

6%

13%

31%

6%

8%9%

83%

Key Highlights:Market Overviewpage 2

Investment Program Offeringspage 9

CUIT Fund’s Performancepage 10

CUIT Fund Reportspage 11

Investment Portfolio Review 2Q 2018

Christian Brothers Investment Services, Inc. n [email protected] PAGE 2Christian Brothers Investment Services, Inc. n [email protected] PAGE 1

CAPITAL MARKETS REVIEW

Global Overview

U.S. Equity Markets

Fixed Income Markets

Strength of the Dollar

Does the Trade Deficit Pose a Threat?

Wages Finally Increasing

Inflation Moving Toward Fed Target

Low Financial Stress

Path Toward Normalization

MARKET MUSINGS

Has the U.S. trade deficit reached a point where it poses a greater risk to the economy than the imposition of tariffs?

MARKET PERSPECTIVE 2Q 2018

The Trade Deficit & Tariffs:Is the Cure Worse Than the Disease?

Although most indicators signal that the U.S. economy remains on a

positive trajectory, the debate over the trade deficit has become a focus of

policy makers and may put a damper on continued growth. Has the U.S.

trade deficit indeed reached a point where it poses a greater risk to the

economy than the imposition of tariffs? Make no doubt about it—tariffs

are a tax, and the cures being considered in Washington will have far-

reaching economic impact.


Investment Portfolio Review 2Q 2018Market Perspective 2Q 2018 JUNE 2018


Capital Markets Review

• Energy stocks rebounded during the

quarter on higher oil prices.

• Financials and Industrials were

notably weak on the quarter due

to a global growth scare and trade

tensions.

• The Information Technology and

Consumer Discretionary sectors

drove market performance over the

last year, led by the FAANG stocks

(Facebook, Apple, Amazon, Netflix,

and Google).

U.S. EQUIT Y MARKETS

GLOBAL OVERVIEW

• U.S. equity markets remained

resilient over the second quarter

despite increased trade tensions

and higher interest rates.

• The U.S. small cap sector

outperformed as concerns of slower

non-U.S. growth surfaced.

• Value stocks continued to

underperform during the quarter.

• Non-U.S. equities were negatively

impacted by the strength in the

dollar.

• Over the last 12 months, U.S.

large cap growth and small cap

outperformed other sectors of the

market.

Market Performance: 3 Month Market Performance: 12 Month

BB U.S. Short T-Bill (1-3M)

BB U.S. Aggregate

S&P 500

Russell 1000 Value

Russell 1000 Growth

S&P SmallCap 600

MSCI ACWI-Ex US (USD)

MSCI ACWI-Ex US (Local)

MSCI EM (USD)

MSCI EM (Local) -3.4

-7.9

2.1

-2.4

8.8

5.8

1.2

3.4

-0.2

0.4 BB U.S. Short T-Bill (1-3M)

BB U.S. Aggregate

S&P 500

Russell 1000 Value

Russell 1000 Growth

S&P SmallCap 600

MSCI ACWI-Ex US (USD)

MSCI ACWI-Ex US (Local)

MSCI EM (USD)

MSCI EM (Local) 10.9

8.6

8.0

7.8

20.5

22.5

6.8

14.4

-0.4

1.3

S&P 500

Consumer Discretionary

Consumer Staples

Energy

Financials

Healthcare

Industrials

Info Technology

Materials

Real Estate

Telecom

Utilities

S&P 500


Consumer Staples

Energy

Financials

Healthcare

Industrials

Info Technology

Materials

Real Estate

Telecom

Utilities

5.0

3.4

9.9

31.3

5.3

7.1

9.6

21.0

-3.9

23.6

14.4

6.1

-0.9 1.4

3.7

2.6

7.1

-3.2

3.1

-3.2

13.5

-1.5

8.2

3.4

Market Performance: 3 Month Market Performance: 12 Month



Market Perspective 2Q 2018 JUNE 2018


• The Federal Reserve increased the

targeted Fed Funds rate by 25 basis

points, as expected.

• The yield curve flattened, with the

30-year yield remaining unchanged.

• Over the last 12 months, the yield

curve experienced significant

flattening as the short end increased

with little movement on the long

end.

• Excess returns for other sectors were

modestly positive for the quarter.

• Over the last 12 months, high yield

generated significant excess returns,

followed by CMBS. Investment

grade corporates were breakeven,

while MBS and ABS posted modest

excess returns.

FIXED INCOME MARKETS

Treasury Yield Curve

Market Performance: 12 MonthMarket Performance: 3 Month

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

30Y10Y7Y5Y3Y2Y1Y6M3M1M

High Yield

Corporate

CMBS

ABS

MBS

Treasury

BB U.S. Aggregate

0.1

0.20.2

0.2

High Yield

Corporate

CMBS

ABS

MBS

Treasury

BB U.S. Aggregate -0.2

0.4

0.00.0

-1.0-1.0

1.01.0

-0.6

0.10.5

0.40.4

-0.4

0.01.0

-0.80.0

2.63.1

Duration-Adjusted Excess ReturnAbsolute Return

6/30/17Maturity

3/31/186/30/18

Corporate spreads widened during the second quarter, yet high yield managed a positive excess return due to the higher level of spreads.





• While the absolute trade deficit

has increased, relative to the size of

the economy, the goods deficit is

manageable.

• Including services, which account

for a large percentage of U.S. GDP,

the trade deficit does not pose an

economic issue.

• The deficit “per se” is a cloak to

wage war on unfair trade practices,

IP protection, and technology

transfers.

• Tariffs, however, are a very blunt

instrument, and there will be

negative repercussions from

reduced global trade volumes.

DOES THE TRADE DEFICIT POSE A THREAT?

• Recent dollar strength needs to be

viewed in a larger historical context.

• The dollar is below the average

valuation of the last 45 years versus

major trading partners.

STRENGTH OF THE DOLLAR

Source: Board of Governors of the Federal Reserve System via the Federal Reserve Bank of St. Louis as of 6/30/2018; https://fred.stlouisfed.org/series/DTWEXM

Trade Weighted U.S. DollarMajor Currencies

Inde

x Mar

1973

=10

0

1977 1981 1985 1989 1993 1997 2001 2005 2009 2013 201740

60

80

100

120

140

16045-Year Average

Balan

ce of

Paym

ents

($M

) / G

ross

Dom

estic

Prod

uct (

$B) /

10*1

2

Source: U.S. Bureau of Economic Analysis via Federal Reserve Bank of St. Louis of 6/30/2018; https://fred.stlouisfed.org/graph/?g=�y9 and https://fred.stlouisfed.org/graphi/?g=�yw

Goods & Services

GoodsTrade Balance

-8

-7

-6

-5

-4

-3

-2

-1

0

201620122008200420001996

Federal Reserve tightening and flight to quality leaves room for further dollar strength.





INFLATION MOVING TOWARD FED TARGET

• Interest rates need to normalize

as well.

• There is potential upside risk to

inflation given the employment

and fiscal stimulus situations.

Source: U.S. Bureau of Economic Analysis via Federal Reserve Bank of St. Louis as of 6/30/2018; https://fred.stlouisfed.org/series/PCEPI

Personal Consumption ExpendituresChain-Type Price Index

Perce

nt Ch

ange

from

a Ye

ar A

go

-2

0

2

4

6

8

10

12

201720102003199619891982197519681961

WAGES FINALLY INCREASING

• Wages continue to recover.

• Anecdotal evidence suggests

workers are beginning to change

jobs given the improved wage

picture; will this impact earnings?

• With unemployment at low levels,

we may see upside risks to inflation.

Source: U.S. Bureau of Labor Statistics via Federal Reserve Bank of St. Louis as of 6/30/2018; https://fred.stlouisfed.org/series/ECIALLCIV

Employment Cost IndexTotal Compensation, All Civilian

Perce

nt Ch

ange

from

a Ye

ar A

go

1.0

1.5

2.0

2.5

3.0

3.5

4.0

20182016201420122010200820062004

Personal Consumption Expenditures, the Fed’s preferred measure of inflation, is normalizing toward the Fed target (2%).



• If inflation settles around the

Fed’s target, expect Fed Funds to

normalize around 3% - 3.5%.

PATH TOWARD NORMALIZATION

Upper Target

Lower Target

Source: Board of Governors of the Federal Reserve System via the Federal Reserve Bank of St. Louis as of 6/30/2018; https://fred.stlouisfed.org/series/DFEDTARL

Federal Funds Target Range

Perce

nt

0.0

0.5

1.0

1.5

2.0

20182017201620152014

• Fear of consumer retrenchment or

recession is premature given this

indicator.

LOW FINANCIAL STRESS

Source: Federal Reserve Bank of St. Louis as of 6/30/2018; https://fred.stlouisfed.org/series/STLFSI

St. Louis Fed Financial Stress Index

Inde

x

-2

-1

0

1

2

3

4

5

6

20182013200820031968

However, the widening of corporate bond spreads cannot be overlooked.







Market Musings

in Europe by an Apple subsidiary in a low-tax nation. Is the iPhone an import or an export? And what is the value? The study concludes that U.S. exports were undercounted and imports overstated by a combined $280 billion in 2012. With these adjustments to the data, the U.S. trade deficit is closer to $257 billion (about 1.6% of GDP) rather than the reported number of $537 billion3.

My conclusion from these analyses is that the trade deficit is not the cause of American workers’ woes, and the cures being considered in Washington may be much worse than the disease. However, the adage “It is hard to fight City Hall” rings true. If significant tariffs are imposed, companies with a low exposure to import costs and a higher domestic revenue stream should prove to be defensive investments—for example, healthcare, financials, and small cap stocks.

Last quarter, I highlighted the risk from the increasing rhetoric around trade protectionism and the potential economic toll of tariffs. Make no mistake, tariffs are a tax and—if imposed—will offset some of the benefits from the recent U.S tax cuts. I wholeheartedly believe in free markets and the benefits from comparative advantage and trade. However, with all the attention on trade and tariffs, I thought I would review whether the U.S. trade deficit has indeed reached a point where it poses a greater risk to the economy than the imposition of tariffs.

The St. Louis Federal Reserve published a blog post earlier this year which succinctly puts the trade deficit into perspective. The absolute value of the trade balance of goods has worsened—the deficit is 10 times larger than it was 25 years ago. However, when adjusted for the size of our economy and price changes, the trade deficit for goods has improved since 2005. And when one includes not only goods but services, where the U.S. enjoys a surplus, the total trade deficit doesn’t look onerous at about 3% of GDP1.

To add more uncertainty to the trade story, one must recognize that measuring the trade balance is imprecise, and there are inconsistencies in the reporting values of countries’ imports and exports. According to figures reported by the World Trade Organization in 2016, the value of all countries’ imports was $350 billion more than the goods they exported2. One country’s imports are another country’s exports, so this number should net out—but there are obvious distortions in the calculation of trade. A working paper from the Bureau of Economic Analysis examines this distortion. The iPhone is a perfect example: It is designed by Apple in California, assembled in China, but sold

When one includes not only goods but services, where the U.S. enjoys a surplus, the total trade deficit doesn’t look onerous at about 3% of GDP.

John W. Geissinger, CFACIO, CBIS

Important Information: This is for informational purposes only and does not constitute an offer to sell any investment. The Funds are not available for sale in all jurisdictions. Where available for sale, an offer will only be made through the prospectus for the Funds, and the Funds may only be sold in compliance with all applicable country and local laws and regulations.

1. “Three Views of the U.S. Trade Deficit.” The FRED Blog, 16 Oct 2017, https://fredblog.stlouisfed.org/2017/10/three-views-of-the-u-s-trade-deficit/.

2. “World Trade Report 2016: Levelling the Playing Field for SMEs.” The World Trade Organization, 27 Sep 2016, https://www.wto.org/english/res_e/booksp_e/world_trade_report16_e.pdf.

3. Guvenen, Fatih, Raymond J. Mataloni Jr., Dylan G. Rassier, Kim J. Ruhl. “Offshore Profit Shifting and Domestic Productivity Measurement.” Bureau of Economic Analysis, 6 Apr 2018, https://www.bea.gov/papers/pdf/GMRR-2017.pdf.



INVESTMENT PROGRAM OFFERINGSCBIS Offers Pooled Funds through its CUIT and Global Funds plc (UCITS) Fund families

CUIT FUND BENCHMARK MANAGER(S)

CUIT Money Market Fund Bloomberg Barclays U.S. Short T-Bills (1-3M) Index Wellington

CUIT Short Bond Bloomberg Barclays 1-3 Year Treasury Index Longfellow

CUIT Intermediate Diversified Bond Bloomberg Barclays Aggregate Index Dodge & Cox, Jennison, Reams

CUIT Opportunistic Bond Bloomberg Barclays 1-5 Year US Gov’t Credit Index Longfellow and Reams

CUIT Balanced 60% S&P 500 / 40% BBAgg Dodge & Cox, Jennison, Reams, RhumbLine

CUIT Core Equity Index S&P 500 RhumbLine

CUIT Value Equity Russell 1000 Value Index AJO, Dodge & Cox

CUIT Growth Russell 1000 Growth Index LA Capital, Wellington

CUIT Small-Cap Equity Index S&P SmallCap 600 Index RhumbLine

CUIT International Equity MSCI ACWI Ex-U.S. Index Causeway, Principal Global, WCM

UCITS FUND BENCHMARK MANAGER(S)

European Short-Term Government Bond Bloomberg Barclays Euro Gov’t Bond Index 1-3 Year ARCA

World Bond Bloomberg Barclays Capital Global Aggregate Index Degroof Fund Management Company

European Equity MSCI Europe Index Degroof Fund Management Company

World Equity MSCI AC World IndexScott Investment Partners; Los Angeles Capital Management Equity Research

Note: CUIT Funds are available to tax-exempt Catholic institutions in the United States. CBIS Global (UCITS) Funds can be purchased in select countries around the world.

Shares in the CUIT Magnus Series are not yet available in some jurisdictions.

MULTI-ASSET PROGRAM OFFERINGS: MAGNUS FUND SERIES CBIS offers the Magnus Fund Series, a Catholic United Investment Trust (CUIT) Fund Family, in the U.S.Powered by the CUIT single asset funds, each Magnus Fund is designed to achieve a diversified and optimized balance between return-seeking and risk-reducing asset classes.

CUIT MAGNUS FUNDS RETURN SEEKING ASSETS RISK REDUCING ASSETS

CUIT Magnus 45/55 Fund CUIT Value EquityCUIT Growth EquityCUIT Core Equity IndexCUIT Small Cap Equity Index CUIT International

3.5%3.5%

20.0%6.75%

11.25%

CUIT Short BondCUIT Opportunistic BondCUIT Intermediate Diversified Bond

13.75%13.75%

27.5%

CUIT Magnus 60/40 Alpha Plus CUIT Value EquityCUIT Growth EquityCUIT Core Equity IndexCUIT Small Cap Equity Index CUIT International

12.0%12.0%12.0%

9.0%15.0%


10.0%10.0%20.0%

CUIT Magnus 60/40 Beta Plus CUIT Core Equity IndexCUIT Small Cap Equity Index CUIT International

36.0%9.0%

15.0%


10.0%10.0%20.0%

CUIT Magnus 75/25 CUIT Value EquityCUIT Growth EquityCUIT Core Equity IndexCUIT Small Cap Equity Index CUIT International

7.5%7.5%

30.0%11.25%18.75%


6.25%6.25%12.5%


Please review the Important Disclosures on page 32 for further information.

CUIT Funds Performance (June 30, 2018)

INVESTMENT OPTION/BENCHMARK1

MONTH3

MONTHS1

YEAR3

YEARS5

YEARS10

YEARSSINCE

INCEPTIONINCEPTION

DATE

CUIT Money Market Fund 0.15 0.42 1.29 0.66 0.41 0.31 3.23 Jan 1985

Bloomberg Barclays U.S. Short T-Bills (1-3 M) Index ± 0.15 0.44 1.29 0.65 0.41 0.35 3.64

CUIT Short Bond Fund 0.09 0.28 0.78 1.33 1.46 2.26 5.12 Jan 1985

Bloomberg Barclays 1-3 Year Treasury Index** 0.01 0.21 0.01 0.40 0.57 1.23 4.92

CUIT Opportunistic Bond Fund Class A 0.09 0.43 0.36 1.38 1.42 * 1.16 May 2013

CUIT Opportunistic Bond Fund Class B 0.10 0.46 0.51 1.53 1.57 * 1.31 May 2013

Bloomberg Barclays 1-5 Year US Government/Credit Index (0.02) 0.17 (0.20) 0.84 1.13 * 0.89

CUIT Intermediate Diversified Bond Fund Class A (0.15) (0.12) (0.19) 1.76 2.26 4.34 5.57 Jan 1995

CUIT Intermediate Diversified Bond Fund Class B (0.14) (0.16) (0.04) 1.91 2.42 4.50 4.42 Jan 2003

Bloomberg Barclays Aggregate Bond Index (0.12) (0.16) (0.40) 1.72 2.27 3.72 5.48 / 3.90

CUIT Balanced Fund 0.62 1.51 8.66 7.54 8.58 7.90 8.85 Dec 1983

60% S&P 500 / 40% BB Agg *** 0.33 2.04 8.45 7.99 9.07 7.95 9.54

CUIT Value Equity Fund Class A 0.46 1.95 11.64 8.12 10.67 8.62 9.64 Jan 1995

CUIT Value Equity Fund Class B 0.49 2.04 12.04 8.51 11.07 9.01 9.75 Jan 2003

Russell 1000 Value Index 0.25 1.18 6.77 8.26 10.34 8.49 9.96 / 9.11

CUIT Core Equity Index Fund Class A 0.73 3.45 14.94 11.71 13.26 9.75 9.73 Jan 1995

CUIT Core Equity Index Fund Class B 0.75 3.49 15.17 11.94 13.49 9.97 5.89 Mar 2000

S&P 500 Index 0.62 3.43 14.37 11.93 13.42 10.17 9.96 / 5.86

CUIT Growth Fund Class A 1.07 5.73 20.61 13.12 14.51 9.81 8.84 Jan 1991

CUIT Growth Fund Class B 1.10 5.81 20.97 13.46 14.87 10.15 9.37 Jan 2003

Russell 1000 Growth Index **** 0.96 5.76 22.51 14.98 16.36 11.83 9.99 / 10.84

CUIT Small Capitalization Equity Index Fund Class A 1.07 8.53 19.31 11.16 12.37 10.31 7.73 Jan 2007

CUIT Small Capitalization Equity Index Fund Class B 1.08 8.62 19.69 11.49 12.69 10.65 8.04 Jan 2007

S&P SmallCap 600 Index § 1.13 8.77 20.05 11.74 12.93 10.83 8.28

CUIT International Equity Fund Class A (2.45) (1.70) 9.92 6.46 7.38 2.85 6.06 Jan 1995

CUIT International Equity Fund Class B (2.41) (1.58) 10.40 6.90 7.82 3.27 2.55 Mar 2000

MSCI ACWI-ex U.S. ‡ (1.84) (2.39) 7.79 5.56 7.04 3.38 5.58 / 3.88



FUND FACTS

PROFILE Q2 2018

Christian Brothers Investment Services, Inc. (800) 592-8890 n [email protected]

CUIT Money Market Fund

Objective Preserve capital, provide current income; and maintain liquidity

InvestmentsHigh quality, short-term, fixed-income obligations

StrategyLiquidity will be maintained by investing in highly rated securities with short maturities and by constraining the average portfolio maturity to less than 90 days; credit and default risk are further minimized by diversifying among issuers; the Fund attempts to maintain a stable net asset value of $1.00 per unit.

BenchmarkBloomberg Barclays U.S. Short T-Bills (1-3 M) Index

Asset ManagersWellington Management Company (Effective 8/1/01)

Total Expense Ratio / Minimum 0.32% / No Minimum

Fund Features Commingled fund exclusive for tax-exempt Catholic institutions

Daily NAV and daily liquidity

Dividends Distributed Monthly

MATURITY DISTRIBUTION %

FUND

0 to 7 Days 17.4

8 to 29 Days 28.3

30 to 59 Days 17.0

60 to 89 Days 16.0

90 to 179 Days 14.6

180 and Over 6.6

PORTFOLIO ANALYSIS

STATISTICS FUND BENCHMARK

Effective Duration (years) 0.2 Yrs 0.1 Yrs

Average Quality A-1+ A-1+

Yield-to-Maturity 2.3% 1.8%

Fund Size $63.0MM

CREDIT QUALITY %

FUND BENCHMARK

A-1+ or higher 73.3 100.0

A-1 25.2 0.0

Less than A-1 0.8 0.0

Cash 0.7 0.0

1.4%

5.0%

4.0%

3.0%

2.0%

1.0%

0.%

CUIT Money Market A BB U.S. Short T-Bills (1-3 M) Index

FUND PERFORMANCE

QUARTERLY RETURN 3 MO 1 YR 3 YR 5 YR 10 YR

CUIT Money Market 0.42 1.29 0.66 0.41 0.31

Bloomberg Barclays U.S. Short T-Bills (1-3 M) Index 0.44 1.29 0.65 0.41 0.35

CALENDAR YEAR RETURN 2017 2016 2015 2014 2013

CUIT Money Market 0.93 0.31 0.02 0.05 0.01

Bloomberg Barclays U.S. Short T-Bills (1-3 M) Index 0.81 0.33 0.05 0.04 0.07

Please see Important Information on Page 2

The Fund’s benchmark was changed to the Bloomberg Barclays U.S. Short Treasury Bills (1-3 Month) Index effective April 1, 2017. For periods prior to

April 1, 2017, the applicable benchmark was the Merrill Lynch 91-Day Treasury Bill Index.

3 MO 1 YR 3 YR 5 YR 10 YR

Christian Brothers Investment Services, Inc. n [email protected] PAGE 12Christian Brothers Investment Services, Inc. n [email protected] PAGE 2 | CB -FFS-000-0000

Important InformationBenchmark Index: The Fund’s benchmark was changed to the Bloomberg Barclays U.S. Short Treasury Bills (1-3 Month) Index effective April 1, 2017. For periods prior to April 1, 2017, the applicable benchmark was the Merrill Lynch 91-Day Treasury Bill Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative indices represent unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but are not necessarily intended to parallel the risk or investment approach of your investments. The indices do not incur taxes or expenses but are inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the indices may be obtained from our provider or CBIS.

Bloomberg Index Services Limited: BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

CUIT Money Market Fund

ALLOCATIONS %

US Government & Agencies

Certificates of Deposit

Repurchase Agreements

Commercial Paper Corporate

Asset-BackedSecurities

Non-Corporate Credit Cash

Fund 24.5 7.1 5.5 9.3 20.7 30.5 1.8 0.7

BENCHMARK 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

FUND COMMENTARY

3-Month Review

¡ Interest rates rose again this quarter as the Federal Reserve increased the federal funds rate by 25 basis points at its June 2018 meeting. During the quarter:

– The 1-month Treasury yield rose from 1.63% to 1.77%;– The 3-month yield rose from 1.73% to 1.93%;– The 6-month yield rose from 1.93% to 2.11%.

¡ The Fund’s yield to maturity rose from 1.91% to 2.33%.

¡ Fund performance was slightly below the benchmark for the quarter. Investment grade credit, asset backed securities, and repurchase agreements were additive.

12-Month Review

¡ During the 1-year period, the Federal Reserve increased the federal funds rate by 25 basis points three times, for a total of 75 basis points, in turn lifting yields and Fund performance.

¡ The 1-month and 3-month Treasury yields rose during the past 12 months, up 93 basis points and 90 basis points respectively.

¡ Sectors that outperformed for the period were asset backed securities – autos and credit cards and corporate/non-corporate credit.

Positioning & Outlook

¡ It is the sub-adviser’s view that the U.S. economy is strong and expected to continue on its growth trajectory through 2019. Their inflation outlook is in the ~2% range through the end of next year, in alignment with the Federal Reserve’s view. The expectation is for the Fed to raise the federal funds rate five times in 2018-2019.

¡ With five future Fed rate hikes likely, the sub-adviser has positioned the portfolio with 45% floating rate notes as they are less effected by rising rates. The current floating rate holdings consist of corporates, which are linked to LIBOR, T-Bill floaters and Agency floaters.

¡ The sub-adviser stated that the money markets have proved to be resilient so far in 2018, weathering large flows of tax repatriation money and the possibility of contagion during the Italian political crisis. The current relative calm in the money markets should continue through Sept.


FUND FACTS

PROFILE Q2 2018


CUIT Short Bond Fund

Objective Preserve capital while providing current income in excess of cash market yields with moderate emphasis on capital appreciation

InvestmentsU.S. government, agency, corporate, asset-backed and mortgage-backed securities with an average maturity of less than five years; up to 10% of the portfolio may be invested in securities rated below investment-grade (including U.S. dollar-denominated domestic, supranational or foreign issues)

StrategyFocuses on sector allocation and security selection, coupled with a top-down macroeconomic risk management process; aimed at minimizing downside risk while maximizing income potential

BenchmarkBloomberg Barclays 1–3 Year Treasury Index

Asset ManagersLongfellow Investment Management Co. (Effective 7/1/08)





PORTFOLIO ANALYSIS


Average Maturity (years) 2.1 Yrs 1.9 Yrs


Average Quality AA- TSY


Current Yield 3.1% 1.9%

# of Securities 184 97

Fund Size $384.4MM

EFFECTIVE DURATION %

FUND BENCHMARK

< 1 Year 39.3 0.0

1 - 3 Years 46.8 100.0

3 - 5 Years 11.6 0.0

5 - 7 Years 2.6 0.0

7 - 10 Years 0.5 0.0

10 - 20 Years 0.0 0.0

> 20 Years 0.0 0.0

CREDIT QUALITY %

FUND BENCHMARK

AAA 54.2 100.0

AA 9.8 0

A 14.2 0

BBB 17.5 0

Below BBB 3.4 0

Cash 0.8 0

3%

2%

1%

0%

-1%

CUIT Short Bond A BB 1-3 Year Treasury Index

FUND PERFORMANCE


CUIT Short Bond 0.28 0.78 1.33 1.46 2.26

Bloomberg Barclays 1-3 Year Treasury Index 0.21 0.01 0.40 0.57 1.23


CUIT Short Bond 1.71 1.99 0.81 1.37 0.84

Bloomberg Barclays 1-3 Year Treasury Index 0.42 0.86 0.54 0.62 0.36

Please see Important Information on Page 2 The Fund’s benchmark was changed to the Bloomberg Barclays 1-3 Year Treasury Index effective July 1, 2016. For periods prior to July 1, 2016, the applicable benchmarks were: ML 1-3 Yr Treasury Index effective 7/1/01.


RISK METRICS

CHARACTERISTICS FUND / 5 YR BENCHMARK / 5 YR

Sharpe Ratio 2.1 0.2

Information Ratio 2.9 N/A

Standard Deviation 0.7 0.7

Tracking Error 0.4 N/A

Upside Capture 148.1 100.0

Downside Capture 10.9 100.0


Important InformationBenchmark Index: The Fund’s benchmark was changed to the Bloomberg Barclays 1-3 Year Treasury Index effective July 1, 2016. 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 performance shown for SBF reflects the linked performance of these benchmarks for each applicable period. Characteristics presented for the Short Bond Fund were also compiled using data from Barclays Capital U.S. 1-3 Year Treasury Bond Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative indices represent unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but are not necessarily intended to parallel the risk or investment approach of your investments. The indices do not incur taxes or expenses but are inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the indices may be obtained from our provider or CBIS.


CBIS offers pooled funds on behalf of a not-for-profit investment trust, the Catholic United Investment Trust (CUIT) Offering Memorandum, which contains further information, is available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Fund. Commingled Fund exclusively for tax-exempt Catholic institutions. All assets are invested in accordance with CBIS’ Catholic Responsible Investing Guidelines. Total expense ratio includes management fee and all other fees (accounting, custody and transfer agent). The Funds provide daily NAV and daily liquidity.

CUIT Short Bond Fund

ALLOCATIONS %

Treasuries Agency Industrials Finance Utilities Supranational Sovereign MBS CMO CMBS ABS MunicipalsCovered Bonds

Merger Arbitrage Cash

Fund 23.3 7.0 2.5 16.4 2.4 0.0 0.0 0.0 1.2 10.5 16.8 2.3 16.6 0.0 0.8

Benchmark 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

FUND COMMENTARY

3-Month Review ¡ In June, the FOMC hiked federal funds rate for the second time in 2018 to a range of 1.75%-2.00%. As a result, yields rose ~20-30 basis points in the

short to intermediate range of the yield curve.

¡ The Fund’s strongest source of return (~11 basis points) was the allocation to the securitized sector; CMBS issues in particular performed well for the period.

¡ The combination of shorter relative duration and yield curve positioning contributed solid results to the Fund (~12 basis points).

¡ Selection effect was neutral for the period.

12-Month Review

¡ The Fund’s combined allocation to corporates and securitized bonds was the strongest sources of excess return (~61 basis points) over the all-Treasury index. Allocations to CMBS, ABS, industrials, and financials were the largest contributors to performance.

¡ Duration and curve positioning together added ~45 basis points to support results as yields increased on the front end of the curve.

¡ Security selection produced a small positive impact (+3 basis points) to the Fund.


¡ The Fund maintains an effective duration of 1.7 years to remain defensively positioned below the benchmark (1.9 years) as the Federal Reserve continues to signal future rate hikes in 2018.

¡ Sector positioning is largely driven by the sub-adviser’s search for income and the expectation that the U.S. economy will continue to exhibit positive economic activity. Emphasis on high quality CMBS, ABS, industrials, and financials, provides significant yield advantage over the benchmark

¡ Curve positioning remains “barbelled” relative to the benchmark with exposure focused on the 0-1 year and 3-5 year duration buckets.

¡ High yield exposure remains at ~4.5% of the Fund.


FUND FACTS

PROFILE Q2 2018


CUIT Opportunistic Bond Fund

Objective Current income and long-term capital appreciation

InvestmentsU.S. government, agency, corporate, and mortgage-backed securities; primarily investment grade with no more than 20% of the portfolio rated below BBB; up to a 10% allocation to merger/arbitrage sector

StrategyUses 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 (+/– 2.5 years of the benchmark) in pursuit of above-benchmark returns over a full market cycle

BenchmarkBloomberg Barclays 1-5 Year Government/Credit Index

Asset ManagersLongfellow Investment Management (Effective 5/1/13); Reams AssetManagement Co. (Effective 5/1/13)

Total Expense Ratio/MinimumClass A: 0.56% / No MinimumClass B: 0.41% / $5M




PORTFOLIO ANALYSIS




Average Quality A+ AA



# of Securities 340 2,860

Fund Size $476.5MM


FUND BENCHMARK

< 1 Year 16.3 2.6

1 - 3 Years 48.6 60.1

3 - 5 Years 30.6 37.3

5 - 7 Years 4.1 0.0

7 - 10 Years 0.3 0.0

10 - 20 Years 0.2 0.0

> 20 Years 0.0 0.0

CREDIT QUALITY %

FUND BENCHMARK

AAA 38.8 69.0

AA 6.5 6.0

A 18.9 12.9

BBB 24.4 12.1

Below BBB 3.4 0.0

Merger/Arbitrage 6.7 0.0

Cash 1.2 0.0

2%

1%

0%

-1%

CUIT Opport. Bond B Bloomberg Barclays 1-5 Yr Gov't/Credit

FUND PERFORMANCE


CUIT Opport. Bond A 0.43 0.36 1.38 1.42 –

CUIT Opport. Bond B 0.46 0.51 1.53 1.57 –

Bloomberg Barclays 1-5 Year Government/Credit 0.17 -0.20 0.84 1.13 –


CUIT Opport. Bond A 1.63 2.54 0.98 1.23 –

CUIT Opport. Bond B 1.78 2.69 1.23 1.27 –

Bloomberg Barclays 1-5 Year Government/Credit 1.27 1.56 0.97 1.42 –



*Allocations exclude M&A.

RISK METRICS









Important InformationBenchmark Index: Bloomberg Barclays 1–5 Year U.S. Govt/Credit Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative index represents unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but is not necessarily intended to parallel the risk or investment approach of your investments. The index does not incur taxes or expenses but is inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the index may be obtained from our provider or CBIS.


CUIT Opportunistic Bond Fund

ALLOCATIONS %

Treasuries Agency Industrials Finance Utilities Supranational Sovereign MBS CMO CMBS ABS MunicipalsCoveredBonds

Merger/ Arbitrage Cash

Fund 16.3 1.5 22.4 20.0 1.6 0.0 0.0 3.9 0.6 10.9 11.3 3.4 0.0 0.0 1.2

Benchmark 61.4 6.4 14.8 11.3 1.1 3.8 0.5 0.0 0.0 0.0 0.0 0.6 0.0 0.0 0.0

Active Weights -45.1 -4.9 7.6 8.7 0.5 -3.8 -0.5 3.9 0.6 10.9 11.3 2.8 0.0 6.7 1.2

All attribution is based on gross portfolio performance.

FUND COMMENTARY

3-Month Review ¡ The Fund’s allocation effect was the largest contributor (~11 basis points) to performance as securitized and corporate sectors returned positive

results for the quarter.

¡ Shorter relative duration (2.5 vs 2.6 years) added ~10 basis points to overall performance as the Federal Reserve increased rates in June to the range of 1.75%-2.00%.

¡ Curve positioning was additive (~3 basis points) for the period.

¡ Security selection modestly lagged, (-2 basis points); the Fund’s holdings in agency and municipals struggled to add value.

¡ The Fund’s merger and arbitrage sleeve outperformed as several transactions were completed during the quarter.

12-Month Review ¡ Allocation effect (~46 basis points) benefitted from the Fund’s overweight to securitized and corporate sectors. Exposure to ABS, CMBS, industrials,

and financials were the main drivers of results.

¡ The Fund’s shorter duration added positive returns (+28 basis points) to boost performance for the trailing period.

¡ Security selection was additive (+14 basis points) largely from strength among corporates; industrial issues contributed 13 basis points to selection results.

¡ Curve positioning contributed 10 basis points due to longer exposure relative to benchmark.

¡ Several merger and arbitrage deals were completed in May and June, which added positively to performance. At the end of June, the strategy represented 7% of total assets in the Fund.

Positioning & Outlook ¡ The sub-adviser continues to maintain slightly shorter duration relative to the benchmark as the Fed continues to tighten monetary policy and

reduce their balance sheet exposure to Treasuries and mortgages.

¡ In terms of portfolio allocation, the Fund continues to emphasize corporates and securitized sectors, which is supported by an underweight to Treasuries. Allocation to industrials, financials, ABS, and CMBS represent ~68% of the Fund’s sector exposure.

¡ Given the increase in cross-border trade tensions and challenges by the Department of Justice to merger deals, the sub-adviser continues to focus on transactions that have the most attractive risk/reward and appear to have a clearly defined completion path.


FUND FACTS

PROFILE Q2 2018

Christian Brothers Investment Services, Inc. (800)-592-8890 n [email protected]

CUIT Int. Diversified Bond Fund

Objective Current income and long-term capital appreciation

InvestmentsU.S. government, agency, corporate, and mortgage-backed securities; holdings are primarily investment grade (BBB to AAA, based on the three primary rating agencies; below-BBB permitted up to 10% of total Fund assets)

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

BenchmarkBloomberg Barclays Aggregate Bond Index

Asset ManagersDodge & Cox, Inc. (Effective 1/1/95); Jennison Associates (Effective 9/2/02); Reams Asset Management Co. (Effective 7/1/08)

Total Expense Ratio/MinimumClass A: 0.53% / No MinimumClass B: 0.38% / $5M




PORTFOLIO ANALYSIS




Average Quality AA AA




Fund Size $1,245.2MM


FUND BENCHMARK

< 1 Year 8.2 1.0

1 - 3 Years 16.9 22.7

3 - 5 Years 28.9 26.1

5 - 7 Years 23.6 28.3

7 - 10 Years 5.3 7.5

10 - 20 Years 17.0 14.2

> 20 Years 0.2 0.2

CREDIT QUALITY %

FUND BENCHMARK

AAA 65.7 71.9

AA 5.4 3.8

A 10.2 11.1

BBB 15.8 13.2

Below BBB 2.6 0.0

Cash 0.3 0.0

CUIT Int. Divers. Bond B Bloomberg Barclays Aggregate Bond Index

FUND PERFORMANCE


CUIT Int. Divers. Bond A -0.12 -0.19 1.76 2.26 4.34

CUIT Int. Divers. Bond B -0.16 -0.04 1.91 2.42 4.50

Bloomberg Barclays Aggregate Bond Index -0.16 -0.40 1.72 2.27 3.72


CUIT Int. Divers. Bond A 3.38 3.53 -0.13 5.65 -1.73

CUIT Int. Divers. Bond B 3.54 3.69 -0.05 5.81 -1.51

Bloomberg Barclays Aggregate Bond Index 3.54 2.65 0.55 5.97 -2.02



RISK METRICS








5%

4%

3%

2%

1%

0

-1


CUIT Int. Diversified Bond Fund

ALLOCATIONS %



Fund 41.9 0.8 15.8 14.4 1.8 0.0 0.0 18.3 0.9 1.4 3.2 1.2 0.0 0.0 0.3

Benchmark 37.7 3.2 15.2 8.1 1.8 1.6 1.0 28.1 0.0 1.9 0.5 1.0 0.1 0.0 0.0

Active Weights 4.2 -2.4 0.6 6.3 0.0 -1.6 -1.0 -9.8 0.9 -0.5 2.7 0.2 -0.1 0.0 0.3


Important InformationBenchmark Index: Bloomberg Barclays Aggregate Bond Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative index represents unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but is not necessarily intended to parallel the risk or investment approach of your investments. The index does not incur taxes or expenses but is inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the index may be obtained from our provider or CBIS.



FUND COMMENTARY

3-Month Review ¡ Duration positioning of the Fund was the primary contributor to outperformance for the quarter (+10 basis points). The Fund’s duration

remains shorter than the benchmark, 5.6 yrs vs 6.0 yrs.

¡ Curve positioning was marginally additive to performance as the short end of the curve rose and the long end was effectively flat.

¡ Sector allocation was slightly negative (-7 basis points), due primarily to the 7% overweight in corporates and the 10% MBS passthrough underweight.

¡ Security selection was positive (+3 basis points) for the quarter. Bank and insurance holdings in the financial sector were the main drivers.

12-Month Review

¡ The Fund’s shorter than benchmark duration was responsible for the majority of the Fund’s outperformance (+56 basis points). During the period, the Fund’s duration modestly increased from 5.4 years to 5.6 years.

¡ Curve positioning was additive (+10 basis points) for the 1-year period as the Treasury yield curve flattened and yields rose.

¡ Sector exposure was slightly negative (-5 basis points), largely due to the Fund’s securitized sector (~5%) underweight.

¡ Security selection was a slight detractor (-5 basis points) due largely to MBS passthroughs. Corporate holdings in the financial sector were offsetting.


¡ The Fund’s sub advisers believe the mostly positive economic news reported during the second quarter will continue through the end of the year, coupled with a gradual flattening of the yield curve. In turn they are cautious, focusing on low volatility and liquid holdings.

¡ The Fund’s effective duration is below benchmark (5.6 vs 6.0 years) as the sub-advisers are defensively positioned with the view that the Fed will follow through with the five planned rate increases during 2018-2019.

¡ The Fund’s curve positioning shifted during the quarter with the sub-advisers increasing 10-20 year positions by ~6% as relative valuation opportunities arose.

¡ The Fund’s sector allocation changed little during the quarter, with the largest overweight in corporates (+7%).


FUND FACTS

PROFILE Q2 2018


CUIT Balanced Fund

Objective Long-term capital appreciation and current income

InvestmentsThe equity allocation is comprised primarily of large-cap U.S. companies diversified across industry sectors. Fixed-income instruments include corporate, U.S. government and agency bonds, and asset-backed and mortgage-backed securities.

StrategyThe equity portion blends undervalued companies with a modest exposure to growth through a core equity index allocation. The fixed-income portion leverages economic and fundamental research in an attempt to identify and capture inefficiencies across the yield curve.

Benchmark60% S&P 500 Index / 40% Bloomberg Barclays Aggregate Bond Index

Asset ManagersFixed Income: Dodge & Cox, Inc. (Effective 4/1/91); Jennison Associates(Effective 9/2/02); Reams Asset Management Co. (Effective 7/1/08)

Equities: Dodge & Cox, Inc. – (Effective 4/1/91); RhumbLine Advisers – (Effective 4/1/02)





PORTFOLIO ANALYSIS

STATISTICS FUND S&P 500

Weighted Median Market Cap $68.9B $105.8B

Price/Book 2.3x 3.2x

Price/Earnings 16.4x 21.0x

Return on Equity 16.4% 19.7%

Dividend Yield 1.6% 1.9%

5-year Earnings Growth 9.2% 10.5%

Beta 1.0 1.0

10 Largest Holdings 28.5 11.6

# of Equity Securities 472 507

Turnover Rate 13.8 N/A

Fund Size $231.2MM

TOP TEN HOLDINGS

STATISTICS %

Microsoft Corporation 3.7

Alphabet Inc. 3.4

Twenty-First Century Fox, Inc. 3.0

Wells Fargo & Company 3.0

Charles Schwab Corporation 2.9

Bank of America Corporation 2.9

Comcast Corporation 2.7

Capital One Financial Corporation 2.6

JPMorgan Chase & Co. 2.3

Anadarko Petroleum Corporation 2.1

PORTFOLIO ANALYSIS: FIXED INCOME

STATISTICS FUND BBAgg

Average Maturity 8.1 8.3

Effective Duration (years) 5.7 6.0

Average Quality AA AA




EFFECTIVE DURATION FUND BBAgg

< 1 Year 6.8 1.0

1 - 3 Years 14.9 22.7

3 - 5 Years 31.1 26.1

5 - 7 Years 23.6 28.3

7 - 10 Years 5.7 7.5

10 - 20 Years 17.7 14.2

> 20 Years 0.2 0.2

18%

10%

8%

6%

4%

2%

0%

-2%

CUIT Balanced Fund 60% S&P 500 / 40% BB Agg

FUND PERFORMANCE

% AVERAGE ANNUAL RETURN 3 MO 1 YR 3 YR 5 YR 10 YR

CUIT Balanced 1.51 8.66 7.54 8.58 7.90

60% S&P 500 Index / 40% Bloomberg Barclays Aggregate Bond 2.04 8.45 7.99 9.07 7.95


CUIT Balanced 13.08 12.05 -2.33 8.80 21.29

60% S&P 500 Index / 40% Bloomberg Barclays Aggregate Bond 14.25 8.31 1.28 10.62 17.56



Christian Brothers Investment Services, Inc. n [email protected] PAGE 20Christian Brothers Investment Services, Inc. n [email protected] PAGE 2

CUIT Balanced Fund

MARKET SECTOR ANALYSIS % – EQUITY


Consumer Staples Energy Financials Healthcare Industrials

Information Technology Materials

Real Estate

Telecommunication Services Utilities Cash

Covered Bonds


Fund 16.0 2.5 8.5 24.8 8.7 7.0 23.0 2.0 1.2 2.8 1.1 2.5 0.0 0.0 0.3

Benchmark 13.2 6.9 6.3 13.8 14.1 9.5 25.7 2.8 2.8 1.8 2.9 0.0 0.1 0.0 0.0

Active Weights 2.8 -4.4 2.2 11.0 -5.4 -2.5 -2.7 -0.8 -1.6 1.0 -1.8 2.5 -0.1 0.0 0.3

MARKET SECTOR ANALYSIS % – FIXED INCOME


Merger/Arbitrage Cash

Fund 41.2 0.8 15.9 13.4 1.8 0.0 0.0 19.4 0.8 1.3 4.1 0.8 0.0 0.0 0.5

Benchmark 37.7 3.2 15.2 8.1 1.8 1.6 1.0 28.1 0.0 1.9 0.5 1.0 0.1 0.0 0.0

Active Weights 3.5 -2.4 0.7 5.3 0.0 -1.6 -1.0 -8.7 0.8 -0.6 3.6 -0.2 -0.1 0.0 0.5




Important InformationBenchmark Index: The Fund’s benchmark was changed to 60% S&P 500 Index / 40% Bloomberg Barclays Aggregate effective January 2, 2003. For prior periods, the applicable benchmark was 60% S&P 500 Index / 30% LB Aggregate / 10% T-Bill. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative indices represent unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but are not necessarily intended to parallel the risk or investment approach of your investments. The indices do not incur taxes or expenses but are inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the indices may be obtained from our provider or CBIS.

The S&P 500 Index is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and has been licensed for use by CBIS. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by CBIS. The CUIT Core Equity Index Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.



CUIT Balanced Fund

FUND COMMENTARY

3-Month Review ¡ The equity component of the Fund trailed the S&P 500 by ~50 basis points; the fixed income composite was in line with the Barclays U.S.

Aggregate.

¡ The style tilt of the equity portfolio detracted as value oriented sub-adviser Dodge & Cox could not keep up with the S&P 500, but remains far ahead of the Russell 1000 Value index. This has been the case for much of the past five years.

¡ Overall stock selection results were weak in information technology (-56 basis points) and consumer discretionary (-37 basis points). Being underweight in Apple and overweight in HP Enterprises cost 50 basis points.

¡ The fixed income component’s duration positioning was the primary contributor to outperformance for the quarter (+11 basis points). The Fund’s duration remains shorter than the benchmark, 5.7 yrs vs 6.0 yrs.

12-Month Review

¡ The Fund’s total return was 21 basis points above its 60/40 benchmark index; the equity component trailed marginally and the fixed income portfolio added value.

¡ Within equity, +132 basis points of excess return was generated in consumer staples, 57 basis points of which came from the lack of tobacco.

¡ A total -170 basis points of underperformance came from consumer discretionary holdings. Three cable and satellite companies were responsible for -139 basis points.

¡ For fixed income, the shorter than benchmark duration was responsible for the majority of the segments outperformance (+52 basis points). During the period, the Fund’s duration modestly increased from 5.4 years to 5.7 years.


¡ The Fund maintains a value tilt within the equity allocation. This has hindered relative performance in the short term, but is generally beneficial over longer periods.

¡ Within equity, the Fund has a large overweight in financials, and smaller ones in consumer discretionary, and energy.

¡ The equity portfolio has significant underweights in consumer staples (predominately tobacco), healthcare, and information technology.

¡ The effective duration of the fixed income portfolio is below benchmark (5.7 vs 6.0 years) as the sub-advisers are defensively positioned, expecting the Fed will increase rates five times during 2018-2019.

¡ Fixed income sector allocation changed little during the quarter. Overweight sectors are Treasuries, at (+4%), and Corporates (+7%), primarily in Banking names. The largest underweight sector is Agencies at (-8%).


FUND FACTS

PROFILE Q2 2018


CUIT Core Equity Index Fund

Objective Long-term capital appreciation

InvestmentsCommon stocks of companies that make up the S&P 500, except those excluded as a result of CBIS’ screens (about 6% of the S&P 500's constituent companies – all unscreened companies are held at their index weight or higher)

StrategyTrack the S&P 500 and counter the impact of screens by overweighting select holdings so that the Fund's broadquantitative characteristics match those of the S&P 500 as closely as possible

BenchmarkS&P 500 Index

Asset ManagersRhumbLine Advisers (Effective 1/1/95)

Total Expense Ratio / Minimum Class A: 0.38% / No MinimumClass B: 0.18% / $3M



Dividends Distributed Quarterly

PORTFOLIO ANALYSIS








Beta 1.0 1.0

Active Share 15.0 0




Fund Size $1,908.0MM

TOP TEN HOLDINGS

STATISTICS %

Apple Inc. 4.1


Alphabet Inc. 3.1

Amazon.com, Inc. 3.0

Berkshire Hathaway Inc. 2.3

Facebook, Inc. 2.1


Exxon Mobil Corporation 1.5


Coca-Cola Company 1.1

20%

15%

10%

5%

0%

-5%

CUIT Core Equity B S&P 500 Index

RISK METRICSCHARACTERISTICS FUND / 5 YR BENCHMARK / 5 YR







FUND PERFORMANCE


CUIT Core Equity A 3.45 14.94 11.71 13.26 9.75

CUIT Core Equity B 3.49 15.17 11.94 13.49 9.97

S&P 500 Index 3.43 14.37 11.93 13.42 10.17


CUIT Core Equity A 22.64 11.27 0.29 13.99 32.03

CUIT Core Equity B 22.87 11.51 0.50 14.19 32.31

S&P 500 Index 21.83 11.96 1.38 13.69 32.39

Please see Important Information on Page 2 The Fund’s benchmark was changed to the Bloomberg Barclays 1-3 Year Treasury Index effective July 1, 2016. For periods prior to July 1, 2016, the applicable benchmarks were: ML 1-3 Yr Treasury Index effective 7/1/01.



CUIT Core Equity Index Fund

MARKET SECTOR ANALYSIS %



Information Technology Materials Real Estate


Fund 13.3 7.1 6.2 14.6 11.9 8.6 26.5 2.9 3.4 2.1 3.1 0.2

Benchmark 13.2 6.9 6.3 13.8 14.1 9.5 25.7 2.8 2.8 1.8 2.9 0.0

Active Weights 0.1 0.2 -0.1 0.8 -2.2 -0.9 0.8 0.1 0.6 0.3 0.2 0.2


Important InformationBenchmark Index: S&P 500 Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative index represents unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but is not necessarily intended to parallel the risk or investment approach of your investments. The index does not incur taxes or expenses but is inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the index may be obtained from our provider or CBIS.

The S&P 500 Index is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and has been licensed for use by CBIS. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by CBIS. The CUIT Core Equity Index Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.


FUND COMMENTARY

3-Month Review ¡ The majority of the Fund’s outperformance in the second quarter was a result of the portfolio’s tobacco and aerospace and defense company

screening.

¡ Tobacco companies were some of the worst performing stocks in the index (down more than 13% in the quarter) – not owning these names contributed ~20 basis points in relative results.

¡ Aerospace and defense screens also added 20 basis points.

¡ The healthcare sector, where screening impact tends to be the most pronounced, was largely neutral in terms of relative results. There were no significant performance differentials in the remaining sectors.

12-Month Review

¡ The largest contributors to the Fund’s outperformance in the 12-month period were noted in consumer staples, healthcare, and industrials.

¡ Within consumer staples, tobacco screens accounted for approximately 60 basis points in outperformance, as the sector was down nearly 25% for the year; re-weighting within the sector offset much of the gain.

¡ In healthcare, the large underweight in pharmaceuticals added nearly 70 basis points in relative return. About 25 basis points of the gain was offset by subsequent re-weighting into weaker performing biotech stocks.

¡ The industrials sector was additive by 13 basis points over the past 12 months. Excluding GE (-48%) added 66 basis points. However, not holding strong performing Boeing (+73%) detracted 30 basis points from relative results.

¡ A slight overweight in information technology was additive by ~10 basis points.


¡ The Fund is structurally underweight pharmaceuticals (healthcare sector), aerospace and defense, a large conglomerate (industrials sector) and tobacco (consumer staples sector) due to Catholic Responsible InvestingSM screens.

¡ Screened companies represent about 14% of the S&P 500 by market cap. While Catholic screening can result in short-term deviations in performance relative to the benchmark, the long-term impact of screening has been minimal.

¡ The Fund is constructed using a portfolio optimization process that aligns the portfolio’s factor exposures as closely as possible with those of its benchmark. A range of fundamental security and industry factors are utilized; specific risk is minimized by constraining individual security weights to their Index weights or slightly higher. In so doing it seeks to minimize tracking error, while also constraining trading costs.


FUND FACTS

PROFILE Q2 2018


CUIT Value Equity Fund


InvestmentsPrimarily the common stocks of U.S. companies, and the dollar denominated stocks of foreign companies, with market capitalizations greater than $1 billion

StrategyCombines complementary value strategies – one seeks undervalued securities using fundamental research, emphasizing industry-leaders with a medium to long-term investment horizon; the other seeks undervalued securities using a quantitative model to analyze asset values, earnings, and other factors

BenchmarkRussell 1000 Value Index

Asset ManagersDodge & Cox (Effective 2/1/00) AJO (Effective 4/1/02)




Dividends Distributed Quarterly

TOP TEN HOLDINGS

STATISTICS %



Capital One Financial Corporation 2.4


Twenty-First Century Fox, Inc. 2.2

Charles Schwab Corporation 2.1

Wells Fargo & Company 1.9

Comcast Corporation 1.9

HP Inc. 1.8

Alphabet Inc. 1.7

PORTFOLIO ANALYSIS








Beta 1.1 1.0

Active Share 69.4 N/A




Fund Size $340.2MM









20%

10%

0%

CUIT Value Equity B Russell 1000 Value Index

FUND PERFORMANCE


CUIT Value Equity A 1.95 11.64 8.12 10.67 8.62

CUIT Value Equity B 2.04 12.04 8.51 11.07 9.01

Russell 1000 Value Index 1.18 6.77 8.26 10.34 8.49


CUIT Value Equity A 16.53 13.98 -3.58 9.57 38.32

CUIT Value Equity B 16.96 14.41 -3.26 9.97 38.80

Russell 1000 Value Index 13.66 17.34 -3.83 13.45 32.53



CUIT Value Equity Fund






Fund 12.8 3.6 10.8 26.5 10.7 6.6 15.7 3.2 2.0 3.3 2.3 2.3

Benchmark 8.3 7.3 11.1 23.3 13.9 7.9 9.9 4.1 4.9 3.6 5.7 0.0

Active Weights 4.5 -3.7 -0.3 3.2 -3.2 -1.3 5.8 -0.9 -2.9 -0.3 -3.4 2.3


Important InformationBenchmark Index: Russell 1000 Value Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative indices represent unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but are not necessarily intended to parallel the risk or investment approach of your investments. The indices do not incur taxes or expenses but are inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the indices may be obtained from our provider or CBIS.


FUND COMMENTARY

3-Month Review ¡ While value oriented equity strategies continue lagging growth investments, the Fund outperformed by ~80 basis points.

¡ Specific stock selection within sectors drove the excess return, with the strongest results in information technology (+68 basis points). Software and services stocks combined to add 69 basis points, much of it coming from Alphabet, Microsoft, Aspen Technology, and Dell Technologies.

¡ Consumer staples added 39 basis points, 21 basis points coming from the lack of tobacco. In healthcare, Fund holding generated +24 basis points; screening large pharma stocks was neutral.

¡ Both sub-advisers outperformed in the second quarter, continuing a trend since mid-2016. Dodge & Cox performance has been particularly strong in recent quarters.

12-Month Review ¡ The Fund outperformed by nearly 500 basis points during the year. Both sub-advisers contributed to the outperformance, with Dodge’s return 260

basis points higher than AJO.

¡ One third of the excess return came from sector allocation; the information technology overweight added 94 basis points and consumer staples underweight added 53 basis points.

¡ Stock selection, driven by Dodge’s fundamental stock picking, was strongest in information technology (+123 basis points), healthcare (+107), and consumer staples (+86). Within healthcare, pharmaceuticals added 58 basis points. Within consumer staples, avoiding tobacco and poor performing household product companies added 80 basis points.

¡ In IT, systems software holdings like Microsoft and Oracle, and technology hardware companies like HP and NetApp were the primary drivers of excess return.

Positioning & Outlook ¡ The Fund enters the third quarter with its largest overweights in information technology (+5.8% vs. the Index) and consumer discretionary (+4.5%).

Financial stocks comprise 26.5% of the holdings (+3.2% versus the Russell 1000 Value).

¡ The Fund is underweight in consumer staples (-3.7% vs. the Index, primarily food, tobacco, and household products), healthcare (-3.2%), utilities (-3.4%), and real estate (-2.9%). Other sector differences are modest.

¡ The Fund has 173 securities; its weighted average market cap and the trailing 12-month P/E ratio (14.8 vs. 16.2) are both lower than the Index.

¡ The largest individual overweights are Capital One (+2.1%), Charles Schwab (+2.1%) and Microsoft (+2.0%). Largest underweights are Berkshire Hathaway (-2.4%), Johnson & Johnson (-2.1% screened holding), and Intel (-1.8%).


FUND FACTS

PROFILE Q2 2018


CUIT Growth Fund


InvestmentsCommon stocks of U.S. companies and the dollar-denominated stocks of foreign companies with market capitalizations above $500 million

StrategyFocus 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

BenchmarkRussell 1000 Growth Index

Asset ManagersWellington Management (Effective 12/31/04)Los Angeles Capital Management (Effective 4/1/09)




25%

20%

15%

10%

5%

0%

CUIT Growth B Russell 1000 Growth Index



Information Ratio -0.3 N/A





FUND PERFORMANCE


CUIT Growth A 5.73 20.61 13.12 14.51 9.81

CUIT Growth B 5.81 20.97 13.46 14.87 10.15

Russell 1000 Growth Index 5.76 22.51 14.98 16.36 11.83


CUIT Growth A 25.38 5.37 5.29 11.65 32.92

CUIT Growth B 25.77 5.69 5.63 12.06 33.31

Russell 1000 Growth Index 30.21 7.08 5.67 13.05 33.49



PORTFOLIO ANALYSIS








Beta 1.0 1.0

Active Share 46.0 N/A




Fund Size $316.7MM

TOP TEN HOLDINGS

STATISTICS %


Alphabet Inc. 5.3

Amazon.com, Inc. 5.2

Apple Inc. 5.1

Facebook, Inc. 4.1

Home Depot, Inc. 2.6

Visa Inc. 2.3

Mastercard Incorporated 2.2

salesforce.com, inc. 1.3

Booking Holdings Inc. 1.3


CUIT Growth Fund






Fund 18.9 1.7 3.7 5.7 10.9 7.5 46.2 1.8 2.1 0.0 0.0 1.5

Benchmark 17.9 5.7 1.0 4.4 13.4 11.9 41.5 1.8 2.2 0.2 0.0 0.0

Active Weights 1.0 -4.0 2.7 1.3 -2.5 -4.4 4.7 0.0 -0.1 -0.2 0.0 1.5


Important InformationBenchmark Index: The Fund’s benchmark was changed to the Russell 1000 Growth Index effective June 1, 2000. For prior periods, the benchmark was the Russell Mid-Cap Growth Index. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative index represents unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but is not necessarily intended to parallel the risk or investment approach of your investments. The index does not incur taxes or expenses but is inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the index may be obtained from our provider or CBIS.


FUND COMMENTARY

3-Month Review ¡ In the second quarter, the Fund generated the strongest absolute return among all CUIT Funds. Returns were on par with the Russell 1000 Growth

index. The sub-advisers second quarter returns were nearly identical.

¡ The overall index was up 5.8% in the second quarter; returns in information technology, consumer discretionary, and energy averaged between 8.6% and 9.6%.

¡ Excess return in the second quarter was generated by sector allocation rather than through specific stock selection. The Fund’s significant overweight in information technology and underweights in industrials and consumer staples were beneficial (>+20 basis points each).

¡ Stock selection was marginally negative in the second quarter, with most impacts spread among information technology holdings. Concentration of returns in a small number of stocks continues to be a challenge for active managers.

12-Month Review

¡ With returns above 20%, investors benefitted from an allocation to the best performing equity asset class. However, the Fund’s sub-advisers, like many peers, have had difficulty matching the index return.

¡ Wellington performed significantly better than LA Capital over the past year; longer term (5-7 years) results are similar.

¡ As in the quarter, the sub-advisers benefitted from their relative sector weightings over the past year, but weak stock selection negated this benefit. Information technology selection cost 100 basis points; financials and industrials lost more than 60 basis points each.

¡ Information technology sector returns averaged 33.5% for the past 12 months and consumer discretionary averaged 27.5%. The weighted average return for all other stocks in the index was less than 12%.


¡ The CUIT Growth Fund has 268 securities and a weighted average market cap of $259 billion, slightly below the index.

¡ The Fund has 46.2% of its holdings in the information technology sector, compared to 41.5% for the Russell 1000 Growth. Secondary overweights remain in financials (+1.3%) and energy (+2.7%).

¡ To compensate, the underweights are largest in industrials (-4.4%), consumer staples (-4.1%) and healthcare (-2.4%).

¡ Both sub-advisers add value primarily through stock selection analytics and research; one does so using quantitative factor models and the other employs bottom up fundamental stock research.

¡ Largest active positions are in Alphabet (+1.5%), Anthem (+1.0%) and Microsoft (+0.9%). Top underweights were Apple (-2.0%), and screened companies United Health Group (-1.6%) and Boeing (-1.4%).


FUND FACTS

PROFILE Q2 2018


CUIT Small Cap Equity Index Fund

Objective Long-term capital appreciation by attempting to replicate the performance of the S&P SmallCap 600, a commonly used index of domestic small-capitaliza-tion stocks

InvestmentsCommon stocks of companies that generally comprise the S&P SmallCap 600

StrategyClosely track the benchmark Index, while seeking replacements for screened stocks among companies with similar market capitalizations in the same or a related industry

BenchmarkS&P SmallCap 600 Index

Asset ManagersRhumbLine Advisers (Effective 1/07)




20%

15%

10%

5%

0%

CUIT Small Cap B S&P SmallCap 600 Index








FUND PERFORMANCE


CUIT Small Cap Equity Index A 8.53 19.31 11.16 12.37 10.31

CUIT Small Cap Equity Index B 8.62 19.69 11.49 12.69 10.65

S&P SmallCap 600 Index 8.77 20.05 11.74 12.93 10.83


CUIT Small Cap Equity Index A 14.43 20.60 -4.75 4.46 38.05

CUIT Small Cap Equity Index B 14.81 20.97 -4.53 4.81 38.38

S&P SmallCap 600 Index 15.22 21.31 -4.41 4.90 38.82

The Fund’s benchmark was changed to the S&P SmallCap 600 Index effective November 1, 2017. For periods prior to November 1, 2017, the benchmark was the Russell 2000 Index. Please see Important Information on Page 2.


PORTFOLIO ANALYSIS








Beta 1.0 1.0

Active Share 4.0 0

10 Largest Holdings 5.0% 4.9%



Fund Size $376.5MM

TOP TEN HOLDINGS

STATISTICS %

Ligand Pharmaceuticals Incorporated 0.6

Stamps.com Inc. 0.5

Neogen Corporation 0.5

CACI International Inc 0.5

FirstCash, Inc. 0.5

HealthEquity, Inc. 0.5

Petroleum Development Corporation 0.5

ASGN Inc 0.5

Trex Company, Inc. 0.5

Axon Enterprise, Inc. 0.5


CUIT Small Cap Equity Index Fund






Fund 14.8 3.1 4.2 17.1 12.0 18.8 15.3 5.0 5.9 1.1 2.2 0.3

Benchmark 14.7 3.1 4.1 16.3 13.5 19.1 15.2 4.9 5.8 1.1 2.2 0.0

Active Weights 0.1 0.0 0.1 0.8 -1.5 -0.3 0.1 0.1 0.1 0.0 0.0 0.3


Important InformationBenchmark Index: The Fund’s benchmark was changed to the S&P SmallCap 600 Index effective November 1, 2017. For periods prior to November 1, 2017, the benchmark was the Russell 2000 Index. Performance for periods of one year and longer are annualized. Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative index represents unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but is not necessarily intended to parallel the risk or investment approach of your investments. The index does not incur taxes or expenses but is inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the index may be obtained from our provider or CBIS.

The S&P SmallCap 600 Index is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and has been licensed for use by CBIS. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by CBIS. The CUIT Small Capitalization Equity Index Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P SmallCap 600 Index.


FUND COMMENTARY

3-Month Review ¡ The large number of Fund holdings and small weight of restrictions (under 2% of Index weight) generally result in little performance impact from

screens; this was the case again in the second quarter.

¡ The overall market in the S&P SmallCap 600 universe was robust in the second quarter with a total return of 8.77%. Although only 4% of the allocation, energy stocks were very strong, averaging 23.5%. Healthcare, consumer discretionary and staples, telecom, and real estate stocks all registered double digit gains.

¡ U.S. small company stocks outperformed large cap in the second quarter and have now pulled ahead on a trailing 1-year basis. After a prolonged period of large cap dominating, the recent rebound in smaller company performance has brought the 3- and 5-year numbers much closer together.

12-Month Review

¡ The impact on performance from Catholic Responsible InvestingSM screens within the Fund was minimal over the 1-year period.

¡ Both the Fund and the linked benchmark index series returned close to 20.0% over the past year. Returns for healthcare stocks averaged nearly 50%. Energy, consumer discretionary, and industrial company returns were all above 20%.

¡ While information technology stocks were the leaders in the large cap universe of stocks with 1-year returns generally above 30%, in small cap information technology returns averaged less than 11%.

¡ For the 1-year period, the linked benchmark index return for the Fund (which now targets the S&P SmallCap 600 index) was 20.05%. Had the Fund maintained the Russell 2000 index, that measure would now stand at 17.57%.


¡ The Fund screens select pharmaceutical, aerospace and defense, and tobacco benchmark constituents. A few companies in other industries are also restricted due to CBIS’ Catholic Responsible InvestingSM criteria.

¡ Screened companies represent less than 2% of the S&P SmallCap 600 Index by market cap.

¡ The sub-adviser uses an optimization process that aligns the portfolio’s factor exposures as closely as possible with those of its benchmark. In so doing it seeks to minimize tracking error and constrain trading costs. Due to the small weight of screened names, this creates very close to a fully replicated portfolio.

¡ The Fund owns most Index constituents at their benchmark weight, along with a subset of the very smallest constituents. All Fund industry weights are at or close to their weights within the S&P SmallCap 600.


FUND FACTS

PROFILE Q2 2018


CUIT International Equity Fund


InvestmentsBroad mix of mostly large and mid cap equities chosen from a universe that incorporates 22 Developed Market countries and 23 Emerging Market countries; up to 30% of the portfolio may be invested in emerging markets

Strategy Combines three managers with complementary growth and value oriented investment processes to produce highly competitive risk adjusted returns.

BenchmarkMSCI All Country World Index ex-U.S.

Asset ManagersCauseway Capital (Effective 2/1/05) Principal Global (Effective 5/18/07)WCM (Effective 9/23/15)

Total Expense Ratio / Minimum Class A: 1.40% / No minimumClass B: 0.89% / $5M




CUIT International Equity A -1.70 9.92 6.46 7.38 2.85

CUIT International Equity B -1.58 10.40 6.90 7.82 3.27

MSCI ACWI ex-U.S. -2.39 7.79 5.56 7.04 3.38


CUIT International Equity A 30.47 2.35 -2.82 -5.11 22.03

CUIT International Equity B 31.04 2.75 -2.45 -4.72 22.49

MSCI ACWI ex-U.S. 27.77 5.01 -3.81 -4.49 23.30

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








GEOGRAPHIC DISTRIBUTIONFUND BENCHMARK

United Kingdom 17.4 12.3

France 7.4 7.5

Italy 4.3 1.7

Germany 7.4 6.5

Japan 11.0 16.4

USA* 6.3 0.0

Canada 7.1 6.6

Other Europe 15.6 15.7

Developed Asia 3.6 8.2

Emeg. Mkts Asia 15.5 18.7

Other Emeg. Mkts 4.4 6.3

20%

10%

0%

-10%

CUIT International Equity B MSCI ACWI ex-U.S.

FUND PERFORMANCE


PORTFOLIO ANALYSIS








Beta 1.0 1.0

Active Share 73.8 0




Fund Size $819.4MM

TOP TEN HOLDINGS

STATISTICS %

Tencent Holdings Ltd. 2.3

Canadian Pacific Railway Limited 2.0

LVMH Moet Hennessy Louis Vuitton SE 1.7

Nestle S.A. 1.7

Keyence Corporation 1.7

Taiwan Semiconductor Manufacturing Co., Ltd. 1.6

Linde AG 1.6

Volkswagen AG 1.5

BP p.l.c. 1.5

Accenture plc 1.3

*U.S. allocation includes ADRs and cash.


CUIT International Equity Fund






Fund 13.4 9.1 6.3 17.6 5.7 13.6 17.6 9.1 0.8 2.6 1.7 2.6

Benchmark 11.2 9.7 7.4 21.9 8.1 11.6 11.9 8.2 3.2 3.7 3.0 0.0

Active Weights 2.2 -0.6 -1.1 -4.3 -2.4 2.0 5.7 0.9 -2.4 -1.1 -1.3 2.6


Important InformationBenchmark Index: The Fund’s benchmark was changed to MSCI All Country World Index (ACWI) ex-U.S. effective June 1, 2015. For periods prior to June 1, 2015, the applicable benchmark was the Morgan Stanley Capital International Europe, Australia and the Far East Index (“EAFE”). Performance for periods of one year and longer are annualized. All Fund performance is reported net of any fees and expenses, but inclusive of dividends and interest. Past performance is not indicative of future performance. The return and principal value of the Fund will fluctuate, and upon redemption, shares in the Fund may be worth less than their original cost. The comparative index represents unmanaged or average returns on various financial assets which can be compared to the Fund’s total returns for the purpose of measuring relative performance, but is not necessarily intended to parallel the risk or investment approach of your investments. The index does not incur taxes or expenses but is inclusive of dividends and interest. Comparative index information is provided by BNY Mellon Bank; information regarding composition of the index may be obtained from our provider or CBIS.

Total Estimated Expense Ratio for Class B reflects the partial waiver of the Investment Management Fee so total expenses do not exceed 99 bps.


FUND COMMENTARY

3-Month Review ¡ During the quarter, value was added relative to the benchmark primarily from stock selection. WCM, one of the Fund’s growth-oriented managers,

outperformed by over 300 basis points, while the other two managers produced returns comparable with the Index.

¡ The largest contributor to relative performance was within the financials sector, where the Fund’s significant underweight added over 25 basis points; specific stock selection added nearly 20 basis points.

¡ Stock selection was also additive within the consumer discretionary (+32 basis points) and the energy (+25 basis points) sectors.

¡ The largest detractor to results (which accounted for about -13 basis points), came from stock selection within the consumer staples sector, particularly the Fund’s food and drug holdings.

12-Month Review

¡ The majority (85%) of the Fund’s outperformance came from stock selection, where all sub-advisers added value relative to the benchmark.

¡ The Fund’s information technology holdings (up nearly 24%) contributed the most to relative performance, with stock selection and sector allocation adding a total 150 basis points.

¡ Stock selection within the energy sector was additive (+50 basis points), as the Fund’s holdings generated 12% in excess return relative to the index.

¡ Within financials, stock selection and sector allocation added nearly 70 basis points.

¡ Screening continues to provide a tailwind; avoiding the poor performing pharma and tobacco companies added over 80 basis points to results, offsetting the modest negative impact from defense restrictions.


¡ The Fund’s holdings are 80% in developed countries and 20% in emerging markets. The Fund is about 5% underweight in emerging markets.

¡ Within developed, the Fund is roughly 8% overweight in Europe (especially UK, Germany, and Italy) and underweight in Japan and other Asian countries.

¡ The Fund’s 363 holdings indicate a bias toward growth over value with a higher than market P/E ratio. Weighted-average market cap is close to the Index. 5-year earnings growth is higher and dividend yield is lower than market average.

¡ Sector allocations remain similar to recent quarters, with a significant underweight to financials (-4.3%) and smaller ones in energy, healthcare, telecom, utilities, and real estate. The Fund is overweight information technology (+5.7%), industrials (+2.0%), and consumer discretionary (+2.1%).


CBIS’ offers a disciplined and comprehensive approach to Catholic Responsible InvestingSM

} CBIS pioneered Catholic Responsible Investingsm and has more than 30 years of experience applying Catholic ethical and social teaching to the investing process.

} While socially responsible investing is often equated with stock screens, a truly effective Catholic Responsible InvestingSM program requires that we also act as responsible owners of companies to bring about a more just society. Our approach to Catholic socially responsible investing emphasizes direct engagement with companies to help improve their policies and practices.

} Catholic Responsible InvestingSM enables Catholic institutions to align their investments with their beliefs and effect real change in corporate activities with respect to human rights, the environment, and corporate governance.

} As an institutional investment firm, we believe that by encouraging strong corporate environmental, social and governance policies, we are helping support long-term performance and the potential growth of shareholder value.


TEL: 800-592-8890 EMAIL: [email protected]

PO Box 9683 Providence, RI 02940-9683

U.S. TEL: 800-321-7194 U.S. FAX: 844-261-6489

NON-U.S. TEL: 508-871-9942 NON-U.S. FAX: 508-599-4183

Via Aurelia, 476 CP 9099 00165 ROMA-ITALIA

TEL: (39) 06 66 01 72 18 FAX: (39) 06 663 88 21

CHICAGO, IL 20 North Wacker Drive, Suite 2000 Chicago, IL 60606-3002

TEL: 877-550-2247 312-803-6440 FAX: 312-803-6441

NEW YORK, NY 777 Third Avenue, 29th Floor, New York NY 10017-1401

TEL: 800-592-8890 212-490-0800 FAX: 212-490-6092

SAN FRANCISCO, CA One Embarcadero Center, Suite 500 San Francisco, CA 94111

TEL: 800-754-8177 415-623-2080 FAX: 415-623-2070

CBIS REGIONAL OFFICES

CBIS REGIONAL TEAMS

TO LEARN MORE ABOUT CBIS CBIS ACCOUNT SERVICES CBIS GLOBAL ROME SERVICE CENTRE

CENTRAL

Daniel T. Hynes Managing Director – Relationship Management DIRECT: (312) 803-4722 EMAIL: [email protected]

Michael A. Nagy Managing Director – Investor and Consultant Relations DIRECT: (312) 803-4732 EMAIL: [email protected]

Gale L. Dickinson Managing Director – Investment Concierge DIRECT: (312) 803-4719 EMAIL: [email protected]

EAST

Mark F. Degenhart, Sr. Managing Director – Relationship Management DIRECT: (212) 503-1934 EMAIL: [email protected]

Sean P. McCaffrey, CAIA Managing Director – Investor & Consultant Relations DIRECT: (212) 503-1913 EMAIL: [email protected]

Jelena Milinkovic, CFA® Managing Director – Investment Concierge DIRECT: (212) 503-1970 EMAIL: [email protected]

WEST

Thomas D. Matty Managing Director - Relationship Management DIRECT: (415) 315-1594 EMAIL: [email protected]

David A. Schwarzenberger, CFA® Managing Director – Investor & Consultant Relations DIRECT: (415) 623-2089 EMAIL: [email protected]

Elizabeth J. Vella Director – Investment Concierge DIRECT: (415) 623-2083 EMAIL: [email protected]



Important Disclosures+ The CUIT Money Market Fund changed its investment approach from overnight repurchase agreements, to actively managed effective 8/1/01. ± Effective April 1, 2017, the benchmark for the CUIT Money Market Fund was changed to the Bloomberg Barclays U.S. Short Treasury Bills (1-3 Month) Index. For periods prior to April 1, 2017, the applicable benchmark was the Merrill Lynch 91-Day Treasury Bill Index. ** 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. *** Effective January 2, 2003, the benchmark for the CUIT Balanced Fund was changed to 60% S&P 500/40% Bloomberg Barclays Aggregate. For prior periods, the applicable benchmark was 60% S&P 500/30% LB Aggregate/10% T Bill. **** Effective June 1, 2000, the benchmark was changed to the Russell 1000 Growth Index; prior to this date, historical returns reflect Russell Mid-Cap Growth Index. ‡ Effective June 1, 2015, the benchmark for the International 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.

All data sourced from FactSet unless otherwise noted. FactSet returns can vary from other sources due to different methodologies. Active share is defined as the sum of the absolute value of the differences between the weights of the securities in a portfolio and the weights of securities in the fund’s benchmark, divided by two.

The CUIT Money Market Fund is not guaranteed by the U.S. Government and there can be no assurance that a stable net asset value of $1.00 can be maintained.

The comparative indices represent unmanaged or average returns on various financial assets which can be compared to the Funds’ total returns for the purpose of measuring relative performance, but are not necessarily intended to parallel the risk or investment approach of your investments. The indices do not incur taxes or expenses but are inclusive of dividends and interest. Comparative index information is provided by certain third parties; information regarding composition of indexes may be obtained from provider or CBIS.

The CUIT Funds are exempt from registration with the Securities and Exchange Commission and therefore are exempt from certain regulatory requirements applicable to registered mutual funds. Performance for periods of one year and longer are annualized. All Fund performance, except where otherwise noted, is reported net of any fees and expenses, but inclusive of dividends and interest. The return and principal value of the Funds will fluctuate and, upon redemption, shares in the Funds may be worth less than their original cost. Past performance is not indicative of future performance.

CBIS offers pooled funds on behalf of a not-for-profit investment trust, Catholic United Investment Trust (CUIT). Offering Memoranda / Disclosure Statements, which contain further information regarding each of the Funds, including certain restrictions regarding redemptions, are available by calling 800-592-8890. Such information should be carefully considered prior to investing in the Funds. Shares in the CUIT Funds are offered exclusively through CBIS Financial Services, Inc., a broker-dealer subsidiary of CBIS.

The S&P 500 Index and S&P SmallCap 600 Index are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and have been licensed for use by CBIS. Standard & Poor’s®, S&P®, S&P 500® and S&P SmallCap 600® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). The trademarks have been licensed to SPDJI and have been sublicensed for use for certain purposes by CBIS. The CUIT Core Equity Fund and the CUIT Small Cap Equity Index Fund are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the CUIT Core Equity Fund, the CUIT Small Cap Equity Index Fund, or any member of the public regarding the advisability of investing in securities generally or in the CUIT Core Equity Fund or the CUIT Small Cap Equity Index Fund particularly or the ability of the S&P 500 Index and S&P SmallCap 600 Index to track general market performance. S&P Dow Jones Indices’ only relationship to CBIS with respect to the S&P 500 Index and the S&P SmallCap 600 Index is the licensing of the Indices and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P 500 Index and the S&P SmallCap 600 Index are determined, composed and calculated by S&P Dow Jones Indices without regard to CBIS, the CUIT Core Equity Fund, or the CUIT Small Cap Equity Index Fund. S&P Dow Jones Indices has no obligation to take the needs of CBIS, the owners of the CUIT Core Equity Fund, or the owners of the CUIT Small Cap Equity Index Fund into consideration in determining, composing or calculating the S&P 500 Index and the S&P SmallCap 600 Index. S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices, and amount of the CUIT Core Equity Fund and the CUIT Small Cap Equity Index Fund or the timing of the issuance or sale of the CUIT Core Equity Fund and the CUIT Small Cap Equity Index Fund or in the determination or calculation of the equation by which the CUIT Core Equity Fund and the CUIT Small Cap Equity Index Fund are to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of the CUIT Core Equity Fund or the CUIT Small Cap Equity Index Fund. There is no assurance that investment products based on the S&P 500 Index and the S&P SmallCap 600 Index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.

S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500 INDEX AND THE S&P SMALLCAP 600 INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY CBIS, OWNERS OF THE CUIT CORE EQUITY FUND AND THE CUIT SMALL CAP EQUITY INDEX FUND OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX AND THE S&P SMALLCAP 600 INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND CBIS, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.


Documents

2Q 2018 Investment Portfolio Review€¦ · Key Highlights: Market Overview page 2 Investment Program Offerings page 9 CUIT Fund’s Performance page 10 CUIT Fund Reports page 11