3Q 2016 Investment Portfolio Reviewcbisonline.com/.../2016/04/CBIS_INVEST_PORT_REVIEW_3Q16.pdf · 2016-11-01 · Christian Brothers Investment Services, Inc. n [email protected]

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

3Q 2016

Investment Portfolio Review

LEADING CATHOLIC INSTITUTIONAL

INVESTMENT MANAGER

} Over $6 billion in assets under management

} Exclusively serve Catholic institutions

} Founded and owned by the De La Salle Christian Brothers

PIONEERED CATHOLIC RESPONSIBLE

INVESTING

} 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 CLIENT BASE

} Religious Institutes } Dioceses } Education } Healthcare

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

9%

83%

7%

BY PRODUCT TYPE ($MILLION)

BY CUIT TYPE ($MILLION)

Separate Accounts $593Global Funds PLC (UCITS) $486CUIT Funds $5,457

Money MarketOpportunistic BondBalancedCore IndexValue

Short bondInt. Diversified BondSmall capGrowthInternational

CBIS Asset Review

$6.5 BILLION IN TOTAL ASSETS

UNDER MANAGEMENT (9/30/16)

1%

22%

12%

7%

6%

5%

6%5%28%

6%

Key Highlights:Market Overviewpage 2

Investment Program Offeringspage 10

CBIS Fund’s Performancepage 11

CBIS Fund Reportspage 12

Investment Portfolio Review 3Q 2016


Market Overview 3Q 2016

MARKET REVIEW

Global Equity Markets Global equities extended their post-Brexit rally in Q3, uplifted by central bank support, most visibly in the form of aggressive quantitative easing from the Bank of Japan (BOJ) and European Central Bank (ECB) along with the U.S. Federal Reserve’s refusal to raise the federal funds rate at both its July and September meetings. Stocks also got a bid from signs of improvement in the U.S. economy, which appeared to strengthen from its slow pace in the year’s first half. The MSCI EAFE all-developed market index returned 6.1% in terms of local currencies. European markets were buoyant; in local currencies Germany gained 8.8%, France 5.2%, the U.K. rose 7.0% and Spain gained 8.2%. Italy lagged due to concerns over its banking sector, but still returned a positive 1.2%. In the U.S., the S&P 500 returned 3.8% while the small-cap Russell 2000 jumped just over 9%. Japan gained 7.3% in yen terms. Emerging markets also posted strong gains as the MSCI Emerging Markets Index returned 7.7% in local currencies; Hong Kong, South Korea and Taiwan all gained over 10% for U.S. dollar-based investors, while most other country constituents also showed positive results. The U.S. dollar drifted sideways against a broad trade-weighted group of currencies during the quarter after rising 20% from early 2013 through early 2016, and ended the quarter little changed overall.

Information technology led sector returns in the U.S. and globally, gaining about 15% in the MSCI All-Country World (ACWI) ex-U.S. Index and 13% in the S&P 500 (in U.S. dollars); improving U.S. economic prospects and improving earnings outlooks were cited as reasons for the strength. Defensive sectors lagged after strong gains earlier in theyear. Utilities and telecom services each gave up about 6% in the S&P 500 while healthcare gained only 1%. Utilities, telecom services and healthcare also lagged globally; in the MSCI ACWI ex-U.S. Index healthcare lost about 2% while the other two sectors were flat.

Trailing 12-month results show little evidence of January’s nervous market dive when global recession fears dominated sentiment or late June’s brief Brexit-inspired weakness. The S&P 500 returned 15.3% with broad based strength across most sectors.

Summary Global equities extended their post-

Brexit rally in Q3, uplifted by central bank support and prospects for stronger U.S. growth. Trailing 12-month returns show little evidence of January’s weakness or the brief post-Brexit decline; global equi-ties gained over 7% while the S&P 500 rose 15%.

Bond returns were about flat for the quarter in the U.S. and globally. Credit spreads tightened slightly, remaining well-below early 2016 levels. Falling government yields and narrowing spreads produced strong returns for the trailing 12 months.

Aggressive central bank stimulus has supported risk assets but has not led to strong global growth. Its effectiveness is being questioned the world over, but there is little clarity on what govern-ments or central banks will do if growth stays weak. The potential range of mar-ket outcomes is wide and likely to be shaped by future policy choices. Inves-tors should establish strong governance policies and address any downside vola-tility with disciplined rebalancing.

Catholic Responsible Investing

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

The Yogi Berra Market “It's tough to make predictions, especially about the future.” - Yogi Berra



The Russell 1000 Value (+16.1%) and Growth (+13.6%) Indices performed comparably as did small-caps; the Russell 2000 matched the S&P 500, returning 15.3%.

Trailing 12-month international returns were more muted and diverse. The MSCI ACWI ex-U.S. Index returned 7.4% in local currencies and 9.7% in U.S. dollars as the dollar weakened slightly. Emerging markets gained about 13% in local currencies, benefitting from broad-based strength among Asian nations in the Index and a rebound on the part of Brazil after severe multi-year losses. Among developed markets, Japan (-5.2%), Italy (-21.6%) and Spain (-6.3%) all lagged while the U.K. gained about 18% (although only 2% in U.S. dollars). Germany gained just over 8% and France just over 2%, each in euros.

Long-term returns give a clearer picture of meaningful per-formance trends and better depict forces shaping portfolio re-sults. U.S. equities have dominated global markets, returning about 11% and 16% compounded annually over the trailing three- and five-years at September 30 compared with only 1% and 6% for the MSCI ACWI ex-U.S (all in U.S. dollars). This is partly due to better U.S. economic performance relative to that of Europe and Japan and to dollar strength, but ACWI ex-U.S. returns in local currencies have also lagged the U.S. Europe has struggled with very slow growth, worries over Euro-pean banks and general regional disputes over policy govern-ance of the common currency area. Emerging markets have un-derperformed on the impact of energy and commodity exposure and currency weakness; in U.S. dollars, the MSCI EM Index returned only -0.2% and 3.4% annually over three and five years.

Global Fixed Income Markets Global 10-year government bond yields were little changed in Q3 after steep declines over the past two to three years. The U.S. remained the highest-yielding major global market, with the 10-year Treasury at about 1.6% at quarter end versus less-than-zero yields, at about -0.1%, in Germany and in Japan. Government yields at the five-year mark were negative across much of the Eurozone, as ECB buying continued at an 80 billion euro monthly pace and was extended during Q3 to include corporate bonds. The Swiss government yield curve was negative across its entire 30-year span as Q3 came to a close. The U.K. 10-year gov-ernment yielded 0.6%.

The U.S. Treasury curve edged up slightly in the U.S. but yields remained well below year-ago levels from about the five-year point out the curve. Zero or near-zero policy rates and

aggressive asset purchase programs in Europe and Japan have driven investors in to risk assets; credit spreads in Europe and the U.S. drifted lower in Q3, remaining well-below early 2016 levels. The Bloomberg Barclays U.S. Aggregate returned 0.5% for the quarter while mortgage-backed (MBS) and asset-backed (ABS) indices returned 0.2% and 0.6%. U.S. high-yield returned a strong 5.5%. The Global Aggregate (in euros) was about flat for the quarter on a slight backup in already historically low govern-ment yields. On a duration-adjusted basis in the U.S., corporates notably outperformed other sectors, followed by commercial mortgage-backed securities (CMBS), while ABS lagged.

Falling government yields and narrowing spreads drove strong bond returns for the trailing 12 months. The Bloomberg Barclays U.S. Aggregate returned nearly 5.2%, while high-yield returned more than 13%. The Global Aggregate (in euros) returned 8.1% for the trailing year; its Treasury component returned 10% while industrials and utilities among corporates returned about 8% and finance lagged at just over 5%. Duration-adjusted excess returns in the U.S. for the year were the same as in Q3: corporates notably outperformed, followed by commer-cial mortgage-backed securities (CMBS), while ABS lagged.

Global Economic Review The U.S. economy continued to remain an island of relative strength among developed market regions and growth estimates for the second half of the year strengthened slightly over the summer. GDP growth of only 0.8% in Q1 and 1.4% in Q2 ap-pears set to improve to 2.8% in Q3 and 2.3% in Q4, according to early October consensus estimates. The Fed noted that job gains have been “solid” and “household spending is growing strongly” at its late September meeting, but that “business fixed invest-ment has remained soft.” And the U.S. outlook is far from strong by historical standards, with calendar year 2017 and 2018 con-sensus growth estimates now pegged at just over 2.0%.

Eurozone growth is weaker and has faded this year rather than strengthened, with 2016 full year growth estimated at 1.5%, down from 2015’s 1.9%, while 2017 growth is forecast to slip further to 1.4%. Growth is also fading in the United Kingdom, partly a result of the Brexit vote; the consensus outlook for 2016 GDP is about 1.7%, down from 2.2% in 2015 and 3.1% in 2014. For 2017, U.K. growth is expected for slow to 0.8%. There was little change in prospects for Japan’s glacially slow pace of growth — where expectations remained mired in a range of 0.6% to 0.7% through 2018.

Market Overview 3Q 2016 October 2016




Asia remains the strongest global region, despite China’s slowdown and the fears surrounding its load of bad debts, prop-erty bubble and potential for a banking crisis which have dogged its outlook for years — so far without much effect. While China’s expected 6% growth over the next several years represents its slowest pace in decades, it’s one of the world’s strongest out-looks. India and the Philippines show outlooks for 7%+ expan-sion and several other south Asian nations appear set for 3% to 4% expansion — yet these economies aren’t large enough to pull the rest of the world along.

THE YOGI BERRA MARKET If you were gifted with clairvoyance that could see the strength of future economic growth and corporate earnings, you would likely consider that a tremendous advantage as an investor. If, in late 2013, you could see that global growth would be disappoint-ingly sluggish, corporate earnings outlooks would be repeatedly cut and the S&P 500 would grind through a six-quarter earnings recession, you might be have been tempted to confidently avoid equities or even short the market. You would have cursed your gift. The S&P 500 rose nearly 30% over the same period despite disappointing fundamentals.

If your clairvoyance included central bank policy, you might have wondered what the objective of the central banks has been. Global central bank assets have grown to nearly $20 trillion and yields in many developed countries have been driven into nega-tive territory. To what end?

Such a confluence of realities — years of historically un-precedented global monetary stimulus combined with chroni-cally lethargic economies — eight years after the worst financial crisis in 80 years would have been nearly unthinkable. The in-herent tension between the two might have given you pause about making any prediction at all. In the words of the great 20th century philosopher and legendary New York Yankee catcher and manager Yogi Berra, “It’s tough to make predictions, especially about the future.”

Predicting future moves in financial markets is always diffi-cult. But the difficulty of making successful predictions does not negate the value of thoughtful macroeconomic analysis that shapes expectations and helps us avoid emotional reactions to unexpected market moves. When our expectations are informed and insightful, our reactions can be perhaps less emotional and more disciplined.

We are faced with an environment where monetary policy

has inflated financial assets, yet real economic growth has re-mained sub-par. Has monetary policy reached its limits? Have we entered a period of secular stagnation? Are there alternative policy responses? And, what are the investment implications?

An Epic Flood of Money In CBIS’ view, the current market environment is especially dif-ficult to analyze in terms of a near- to medium-term market outlook. Eight years of continuous central bank stimulus has largely failed to produce the stronger economic growth and two percent inflation that seem to be the ubiquitous goals of central banks worldwide. Yet failure hasn’t been for lack of trying. Since the 2008/2009 crisis, central banks have used three primary pol-icy tools in their attempt to boost investor confidence, spur in-vestment and lending, and spark economies:

Quantitative Easing (QE) — the purchase of financial assets with newly created money to suppress interest rates, promote credit extension and improve system liquidity; Zero and Negative Interest Rate Policies (ZIRP and NIRP) — setting policy rates at or below zero to force bank lending by penalizing the cost of holding reserves, and Forward Guidance — giving investors (and speculators) confidence that short-term rates will be held low for a pro-longed period of time, which in turn supports credit exten-sion at longer maturities and pulls longer-term rates down. As shown in Tables I and II, the largest global central banks

have expanded their balance sheets to a historically unprece-dented degree in recent years through multiple rounds of QE. Chart II is perhaps the most illustrative, showing aggregate growth in assets from just over $5 trillion in early 2008 to nearly $20 trillion by August 2016. Central banks have unleashed a tidal wave of liquidity into global markets, driving rates down below zero, driving down credit spreads, pushing yield-seeking investors farther into risk assets, giving speculators confidence that central banks create a virtual floor under broad market valuations and generally making life difficult for active manag-ers relying on traditional analysis of fundamentals and valua-tions.

Nor has central bank buying been limited to government bonds and mortgages. The European Central Bank (ECB) and Bank of England (BOE) initiated programs over the summer to buy corporate bonds. Both the Swiss National Bank and Bank of





0

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400,000

Dec‐02 Dec‐04 Dec‐06 Dec‐08 Dec‐10 Dec‐12 Dec‐14

Central Bank of Japan Assets (100 Million Yen) People’s Bank of China Assets (100 Million Yuan)

Source: Federal Reserve Bank of St. Louis (FRED) Source: Factset, People’s Bank of China website

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U.S. Federal Reserve Assets (Trillions USD) European Central Bank Assets (Trillions EUR)

Source: Federal Reserve Bank of St. Louis (FRED) Source: Federal Reserve Bank of St. Louis (FRED)

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I. Growth in Central Bank Assets (through August 2016)

Japan (BOJ) are equity market investors. The Swiss National bank, according to U.S. regulatory filings, owned $62 billion in U.S. stocks at the end of Q2, a 50% increase from the start of the year. The BOJ began buying Japanese stocks in 2010 at a pace of about 50 billion yen annually and said in July it would doubleits rate, now at 3.3 trillion yen per year, to 6 trillion yen (about $65 billion), mostly through ETF purchases. A Goldman Sachs

report quoted in the Financial Times (FT) in August said the BOJ will own at least 10% of the equity in 32 Japanese compa-nies within a year. The FT also reported the BOJ is now a larg-er buyer than any other investor bloc in the Japanese market. It’s no wonder investors have been trained in recent years to buy market dips when central banks themselves are doing so. The old adage still holds true: “It is hard to fight the Fed.”



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Bank of China US Fed ECB BOJ Switzerland BOE

II. Growth in Aggregate Central Bank Assets (through August 2016)

Source: Factset, U.S. Federal Reserve Bank of St. Louis (FRED) and respective central bank websites.

$5 Trillion

$10 Trillion

$15 Trillion

$20 Trillion

Christian Brothers Investment Services, Inc. n [email protected] PAGE 6Christian Brothers Investment Services, Inc. n [email protected] PAGE 6


Where’s the Growth? While central banks have indeed been successful in inflating financial assets, the question remains whether this policy has been effective in supporting real economic growth. The failure of optimistic economic and corporate earnings forecasts to ma-terialize in recent years has become almost a cliché. The ritual is the same as each year unfolds: optimism fades in the face of weak data, growth estimates come down, markets falter and central banks come to the rescue with more aggressive and am-bitious policy responses. Chart III illustrates the theme. The chart shows the evolution of estimated calendar 2016 and 2017 real GDP growth from September 2013 annually through Sep-tember 2016. Only the Eurozone showed stability, but from a base so low the word “growth” hardly applies. And there too a hint of strength in 2015 melted in the face of weak data and June’s Brexit vote.

The counterpart to faltering economic growth estimates has been a similar reduction in corporate earnings outlooks, a theme we have discussed in recent quarterly letters. Chart IV, which illustrates the general trend in the U.S., shows the evolu-tion of estimated calendar year 2016 S&P 500 aggregate earnings

per share since late 2013. The energy sector’s earnings recession after 2014’s oil price collapse is a contributor to the decline, but the overall pattern depicts a broader reality. Earnings data com-piled by Zacks (www.Zacks.com) present a similar picture. Zacks measures aggregate earnings, thereby avoiding the boost share buybacks give earnings per share, and notes Q3 2016 is set to be a sixth straight quarter of declining year-to-year net in-come for S&P 500 companies as a group. Removing the weak energy sector improves Zacks’ numbers somewhat, but only to about zero “growth” in each of the most recent four quarters.

Despite recent results, expectations continue to be robust. Zack’s survey of analyst estimates shows a 5% jump in expected S&P 500 earnings for Q4 2016 and 10%+ growth in calendar years 2017 and 2018, with strength evident from both a rebounding energy sector and broadly across sectors.

Bursting the Confidence Bubble Whether today’s optimism will prove as illusory as that of recent years is a prediction that’s hard to make with any confidence. What isn’t hard to predict is an erosion in the confidence of cen-tral banks to create growth through asset purchases. So far this



III. Diminished Expectations: Evolution of Predicted % Real GDP Growth for 2016 & 2017

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2016 est. 2017 est.

2013 2014 2015 2016

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2013 2014 2015 2016

Source: Factset Economics Estimates / Latin America includes Argentina, Brazil, Chile, Colombia, Mexico, Peru

United States Eurozone

Japan Latin America



year, several of the world’s largest and most powerful economic institutions have issued reports that offer critical assessments of global economic performance and governance.

The International Monetary Fund (IMF) gave its 2016 World Economic Outlook, released in April 2016, the title “Too Slow for Too Long” and said the world faced risk of an “economic derailment” while calling for coordinated govern-ment stimulus to counter what it describes as a weak and fragile global economy and rising income inequality. And it called on governments to foster a more inclusive prosperity.

The World Bank in its June 2016 Global Economic Pros-pects report cut its 2016 global growth forecast to 2.4% from its January estimate of 2.9% and warned that “in an environment of anemic growth, the global economy faces pronounced risks, including a further slowdown in major emerging markets, sharp changes in financial market sentiment . . . and concerns about the effectiveness of monetary policy. . . .” The report urged gov-ernments to invest in infrastructure, education, health, human skills and wellbeing and institute policies to improve standards of living.

The Organization for Economic Cooperation and Devel-opment (OECD) in its Interim Economic Outlook, released in September 2016, noted that global monetary policy has “become overburdened and is creating distortions in financial markets.” It called for more and collective fiscal policy along with structural reforms to boost growth and promote what it termed “inclusiveness.” William White, chairman of OECD’s economic committee (and former Bank for International Settlements re-search economist who was one of the few mainstream central bankers to predict the 2008/2009 crisis) was more blunt in a September 25, 2017 editorial published in the FT. Unprece-dented monetary experimentation over the past eight years, he

noted, has failed to stimulate demand, fostered financial insta-bility, created mountains of unproductive debt, resulted in capi-tal misallocation and that government action will be required to solve the problems monetary policy has created. He called for a “paradigm shift in thinking about how the economy and policy work” and said the way forward “relies on government action rather than that of central banks.”

By far the most severe critique was issued by the United Nations Conference on Trade and Development who, in a report issued in September 2016, said, “The world economy in 2016 is in a fragile state, with growth likely to dip below the 2.5 per cent registered in 2014 and 2015.” The report offered a savage review of financial globalization, indicting central bank easy money policies for fomenting an emerging market debt bubble and cit-ing corporations’ failure to reinvest profits, focusing instead on short-term share boosting schemes, as a cause of falling global productivity. The report said lack of corporate investment is a primary engine of inequality and weakening aggregate demand, and called economic growth strategies based on wage suppres-sion and fiscal austerity policies a demand destroyer. It said a global new deal may be required to address global imbalances and avert the possibility of epic debt defaults.

Economics isn’t called “political economy” (or “the dismal

science”) for nothing; 2% to 3% growth is far from a depression and hyperbole gains attention. Yet these reports are emblematic of shifting global political winds. Citizens in developed nations are tired, frustrated and increasingly disenchanted with zero yields on their savings, with central bank policies that only in-flate asset prices and widen wealth inequality and with econo-mies that don’t work as well and as inclusively as they should. Charts VI and VII illustrate this theme as it applies in the U.S.



Source: Factset Source: Yahoo Finance / Note: September 2013 through September 2016

V. S&P 500 Index Price IV. Evolution of Estimated 2016 S&P 500 EPS ($/Share)

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and in Europe. While almost dwarfed by the scale of time, the line in the U.S. since about 2000 is telling. The post-World War II pattern of strong recoveries from short recessions has been shattered; growth hasn’t been anywhere near 5% since the 20th century.

Central banks are taking notice too, but their remedies may only be more of the same. Larry Summers, Treasury Secretary during the Clinton administration, former economic adviser to President Obama and bellwether for the mind-set of serious economists worldwide, at a Bank of Japan conference in late September suggested global central banks should consider GDP targeting and the purchase of a “wider range of assets on a sus-tained and continuous basis” to combat “secular stagnation” (his term for the failure of global growth rates to reach historical norms). In late September, at a banker’s conference in the U.S., Fed Chair Janet Yellen floated the idea that purchase of stocks and bonds may help the Fed better respond to future economic weakness and that targeting nominal GDP is another policy tool that merits study. Trial balloons for additional forms of ECB stimulus regularly appear in the financial press too.

We are concerned central banks cannot solve the growth problem by themselves. Higher asset prices are not translating into higher economic growth rates. Fiscal policy must become a part of the solution.

Investment Implications What does this all mean for the management of participant portfolios? The potential range of market outcomes is very wide indeed and likely to be shaped by policy choices that have yet to be made.

An optimistic future would mirror the current consensus outlook among Wall Street analysts: the natural proclivity of economies to grow finally asserts itself, U.S. and global growth

strengthens, corporate profits rebound, the Fed’s slow tightening resumes, rising profits support equities in the U.S. and globally, bond yields rise gradually, and financial market returns approxi-mate the mid single-digit forecasts embodied in long-term asset allocation modeling.

Pessimistic path analysis involves more drama and creativ-ity, but without loss of plausibility. One potential future would see U.S. and global growth and earnings continue to disappoint, possibly rattling political nerves and forcing some sort of now-uncertain fiscal policy response. The long-standing divergence between equity prices and earnings fundamentals may yet be resolved in favor of fundamentals. An equity bear market could be the outcome, along with a sharp rise in credit spreads, although safe-haven government yields may fall even further.

On the other hand, if economies and earnings continue to languish, central bank firepower may be redoubled again, with the Fed joining the ECB and BOJ in potentially more creative stimulus. There is no guarantee political discord could constrain such a scenario, particularly if gridlock and indecision sur-rounding fiscal policy assure that central banks remain the only actors capable of “doing something”.

There is little historical precedent other than the past few years for analyzing stock valuations in a backdrop of massive coordinated global QE and prolonged negative interest rates. Perhaps it’s best not to try, yet a “melt up” in equity valuations, building on the foundation produced by central bank easing so far, cannot be ruled out.

Two sigma events (i.e. two standard deviations away from the average) occur with regularity — about 1 in 20 times based on the normal probability distribution. Given the myriad of eco-nomic, monetary and fiscal policy uncertainties facing markets today, an investor using a long-term capital market assumption that contemplates annual 17% to 18% equity volatility (i.e. one



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1930 1940 1950 1960 1970 1980 1990 2000 2010

VI. U.S. Real GDP (% Growth vs. Year Ago)

Source: Reserve Bank of St. Louis (FRED) / Note: Calendar year data through 2015

VII. Eurozone Real GDP (% Growth vs. Year Ago)

Source: Reserve Bank of St. Louis (FRED) / Note: Quarterly data through Q2 2016



standard deviation) should not be shocked by a 35% to 40% decline in stock prices (roughly a two sigma event) or a surge for that matter if central banks expand toolkits to include stocks, bonds, GDP and anything they believe can boost growth and price levels. Almost any market scenario seems plausible.

Buying low and selling high is easy to imagine but very, very hard to do. Yogi Berra observed, “You’ve got to be very careful if you don’t know where you are going, because you might not get there.” If investment success is the destination, getting there re-quires a reasonably informed understanding of market risks and

opportunities. You avoid being blindsided and shaken by a ride that turns rough and you’re better prepared to deal with it if it does. The best plan is to understand the range of possible out-comes while not trying to predict them with any precision, make sure budgets and spending plans can withstand the stress of downside volatility, and institute a strong governance structure that specifies target asset class weights and a disciplined rebal-ancing strategy. You can’t predict the future, but when it comes you won’t be completely surprised. And that will be a real ad-vantage for you as an investor.



Important InformationThis 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.



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 91-Day Treasury Bill Wellington

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

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

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

CUIT Balanced 60% S&P 500 / 40% BCAgg 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 Russell 2000 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 Barclays Euro Gov’t Bond Index 1-3 Year ARCA

World Bond Barclays Capital Global Aggregate Index Schroder Investment Management

European Equity MSCI Europe Index Degroof Fund Management Company

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

Note: UCITS Funds are not available in the U.S., but can be purchased currently in select countries around the world.

Investment Management ProcessCBIS hires institutional investment management firms to manage our institutional funds and separately managed portfolios. We typically combine two or more managers in actively managed funds in order to achieve our investment objective.

MANAGERIDENTIFICATIONAND SELECTION

PORTFOLIOCONSTRUCTION

ON-GOINGDUE DILIGENCE

Proven Investment Process

Defined Core Competency

Value add over a full market cycle

Preference for majority-owned firms

Assess CRI Impact

Diversification of manager core competencies

Improved risk-adjusted returns

Managed Active Share

Systematic evaluation process

Quantitative and qualitative assessment

Analyze any disconnect between expectations and reality



INVESTMENT OPTION/BENCHMARK 1 MONTH

3 MONTHS

1YEAR

3 YEARS

5 YEARS

10 YEARS

SINCE INCEPTION

INCEPTION DATE

CUIT Money Market Fund + 0.03 0.08 0.20 0.09 0.05 0.82 3.35 Jan 1985

Merrill Lynch 91-Day TBill Index 0.05 0.10 0.27 0.12 0.10 0.92 3.79

CUIT Short Bond Fund 0.09 0.39 2.04 1.67 1.74 3.03 5.36 Jan 1985

Barclays Capital 1-3 Year Treasury Index ** 0.12 (0.11) 0.88 0.98 0.69 2.25 5.20

CUIT Opportunistic Bond Fund Class A 0.17 0.49 2.78 1.88 * * 1.45 May 2013

CUIT Opportunistic Bond Fund Class B 0.19 0.53 2.94 2.03 * * 1.60 May 2013

Barclays 1-5 Year US Government/Credit Index 0.15 0.04 2.06 1.72 * * 1.39

CUIT Inter. Diversified Bond Fund Class A (0.07) 0.66 5.52 3.93 3.45 5.34 6.05 Jan 1995

CUIT Inter. Diversified Bond Fund Class B (0.06) 0.70 5.61 4.07 3.60 5.49 5.02 Jan 2003

Barclays Capital Aggregate Bond Index (0.06) 0.46 5.19 4.03 3.08 4.79 5.99 / 4.50

CUIT Balanced Fund 0.47 4.71 10.57 6.88 11.18 6.02 8.77 Dec 1983

60% S&P 500/ 40% BC Agg*** (0.01) 2.49 11.43 8.42 11.05 6.56 8.68

CUIT Value Equity Fund Class A 0.94 6.85 9.01 6.73 15.04 5.07 9.21 Jan 1995

CUIT Value Equity Fund Class B 0.98 6.95 9.39 7.11 15.45 5.44 9.04 Jan 2003

Russell 1000 Value Index (0.21) 3.48 16.20 9.71 16.15 5.85 9.91 / 8.93

CUIT Core Equity Index Fund Class A 0.14 4.49 14.71 10.72 15.88 6.66 9.20 Jan 1995

CUIT Core Equity Index Fund Class B 0.19 4.54 14.94 10.94 16.11 6.86 4.82 Mar 2000

Standard & Poor’s 500 Index ++ 0.02 3.85 15.43 11.16 16.37 7.24 9.48 / 4.84

CUIT Growth Fund Class A 0.36 4.01 12.21 10.93 15.65 7.31 8.18 Jan 1991

CUIT Growth Fund Class B 0.40 4.10 12.55 11.30 16.02 7.64 8.16 Jan 2003

Russell 1000 Growth Index **** 0.37 4.58 13.76 11.83 16.60 8.85 9.24 / 9.52

CUIT Small Cap Equity Index Fund Class A 1.05 8.86 14.92 6.22 15.15 * 5.80 Jan 2007

CUIT Small Cap Equity Index Fund Class B 1.14 8.99 15.27 6.55 15.53 * 6.10 Jan 2007

Russell 2000 Index 1.11 9.05 15.47 6.71 15.82 * 6.33

CUIT International Equity Fund Class A 1.54 8.05 10.61 1.25 7.91 1.47 5.53 Jan 1995

CUIT International Equity Fund Class B 1.56 8.12 11.05 1.66 8.34 1.88 1.47 Mar 2000

MSCI ACWI Ex-U.S. ‡ 1.28 7.00 9.80 1.08 7.97 2.34 5.08 / 3.06

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

CUIT Funds Performance (September 30, 2016)


FUND FACTS

PROFILE Q3 2016

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 and credit quality are maintained by investing only in securities rated A-1/P-1 or higher; average portfolio maturity is 90 days or less, while 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

BenchmarkML 91 Day Treasury Bill

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

Total Expense Ratio / Minimum 0.24% / No Minimum

Fund Features Commingled fund exclusive for tax-exempt Catholic institutions

Daily NAV and daily liquidity

Dividends Distributed Monthly

MATURITY DISTRIBUTION %

FUND

0-7 Days 15.4

8-29 Days 24.0

30-59 Days 22.2

60-89 Days 15.9

90-179 Days 7.6

180 and Over 14.8

PORTFOLIO ANALYSIS

STATISTICS FUND ML T-BILL

Effective Duration 0.2 Yrs 0.2 Yrs

Average Quality AA Treasury

Yield-to-Maturity 0.75% 0.16%

Fund Size $72.6MM

CREDIT QUALITY %

FUND ML T-BILL

A-1+ or higher 86.4 100.0

A-1 11.6 0.0

Less than A-1 2.0 0.0

Not Rated 0.0 0.0

1.4%1.00%0.90%0.80%0.70%0.60%0.50%0.40%0.20%

1.0%0.20%0.6%0.10%0.2%0.0%

CUIT Money Market ML 91-Day T-Bill Index

FUND PERFORMANCE

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

CUIT Money Market 0.08 0.20 0.09 0.05 0.82

ML 91-Day T-Bill Index 0.10 0.27 0.12 0.10 0.92

CALENDAR YEAR RETURN 2015 2014 2013 2012 2011

CUIT Money Market 0.02 0.05 0.01 0.00 0.00

ML 91-Day T-Bill Index 0.05 0.04 0.07 0.11 0.10

Please see Important Information on Page 2

3 MO 1 YR 3 YR 5 YR 10 YR

Christian Brothers Investment Services, Inc. n [email protected] PAGE 13Christian Brothers Investment Services, Inc. n [email protected] PAGE 2 | CB -FFS-005-1016

Important InformationBenchmark Index: ML 91-Day T-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. 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 Money Market Fund

ALLOCATIONS %

US Government & Agencies

Certificates of Deposit

Repurchase Agreements

Commercial Paper Corporate

Asset-BackedSecurities

Non-CorporateCredit

Fund 34.3 2.2 8.8 10.8 17.1 25.3 1.5

ML T-BILL 100.0 0.0 0.0 0.0 0.0 0.0 0.0


FUND FACTS

PROFILE Q3 2016


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

BenchmarkBarclays Capital 1-3 Year Treasury Index

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





PORTFOLIO ANALYSIS

STATISTICS FUND BENCHMARK

Average Maturity 2.08 Yrs 1.89 Yrs


Average Quality A+ AAA


Current Yield 3.09% 1.41%

# of Securities 182 91

Fund Size $314.8MM

EFFECTIVE DURATION %

FUND BENCHMARK

< 1 Year 40.3 N/A

1-3 Years 40.3 100.00

3-5 Years 18.9 N/A

5-7 Years 0.5 N/A

7-10 Years N/A N/A

10-20 Years N/A N/A

> 20 Years N/A N/A

CREDIT QUALITY %

FUND BENCHMARK

AAA 52.6 100.0

AA 7.6 N/A

A 11.5 N/A

BBB 17.7 N/A

Below BBB 9.0 N/A

Cash 1.6 N/A

4%

3%

2%

1%

0%

-1%

-2%

CUIT Short Bond Barclays Capital 1-3 Year Treasury Index

FUND PERFORMANCE


CUIT Short Bond 0.39 2.04 1.67 1.74 3.03

Barclays Capital 1-3 Year Treasury Index -0.11 0.88 0.85 0.69 2.25


CUIT Short Bond 0.81 1.37 0.84 2.98 2.31

ML 1-3 Year Treasury Index 0.54 0.62 0.36 0.43 1.55

The Fund’s benchmark was changed to the Barclays Capital 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 2.6 1.0

Information Ratio 2.3 0.00

Standard Deviation 0.8 0.6

Tracking Error 0.6 N/A

Downside Capture 7.5 100.00

Upside Capture 181.3 100.00


Important InformationBenchmark Index: The Fund’s benchmark was changed to the Barclays Capital 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 Non-Corp. MBS CMO CMBS ABS Municipals Cash

Fund 17.0 11.4 14.7 13.5 1.9 0.0 2.3 0.9 16.3 17.0 3.4 1.6

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


FUND FACTS

PROFILE Q3 2016


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

BenchmarkBarclays Capital 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 Maturity 2.60 2.90


Average Quality A AA



# of Securities 365 3,052

Fund Size $430.5MM


FUND BENCHMARK

< 1 Year 31.85 0.90

1 - 3 Years 34.88 57.90

3-5 Years 30.92 41.20

5-7 Years 2.21 0.0

7-10 Years 0.08 0.0

10-20 Years 0.08 0.0

> 20 Years 0.0 0.0

CREDIT QUALITY %

FUND BENCHMARK

AAA 48.07 67.78

AA 5.58 7.43

A 15.47 12.00

BBB 19.18 12.56

Below BBB 8.06 0.23

Cash 3.63 0.0

3%

2%

1%

0%

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

FUND PERFORMANCE


CUIT Opport. Bond A 0.49 2.78 1.88 – –

CUIT Opport. Bond B 0.53 2.94 2.03 – –

Barclays 1-5 Yr Gov't/Credit 0.04 2.06 1.72 – –


CUIT Opport. Bond A 0.98 1.23 – – –

CUIT Opport. Bond B 1.23 1.27 – – –

Barclays 1-5 Yr Gov't/Credit 0.97 1.42 – – –



*Allocations exclude M&A.


Important InformationBenchmark Index: 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. 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 Opportunistic Bond Fund

ALLOCATIONS %

Treasuries Agency Industrials Finance Utilities Non-Corp. MBS CMO CMBS ABS MunicipalsMerger/

Arbitrage Cash

Fund 18.0 2.4 19.1 16.6 1.7 0.0 4.9 2.0 15.7 7.2 2.8 6.2 3.4

Benchmark 58.8 8.2 14.9 11.7 1.4 4.3 0.0 0.0 0.0 0.0 0.6 0.0 0.0

All attribution is based on gross portfolio performance.

Active Weights

-40.8%

Treasuries

-5.8%

Agency4.9%

MBS

2.0%CMO

2.2%

Municipals

6.2%

M&A

3.4%

Cash

4.2%

Industrials

4.9%

Finance0.3%Utilies -4.3%

Non-Corp.

15.7%7.2%

CMBS ABS


FUND FACTS

PROFILE Q3 2016

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)

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

BenchmarkBarclays Capital 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 $1,216.8MM


FUND BENCHMARK

< 1 Year 14.5 3.3

1-3 Years 29.0 36.8

3-5 Years 22.0 25.6

5-7 Years 9.0 11.0

7-10 Years 7.5 8.8

10-20 Years 11.7 14.4

> 20 Years 6.4 0.00

CREDIT QUALITY %

FUND BENCHMARK

AAA 64.1 70.41

AA 2.9 5.0

A 10.9 10.8

BBB 18.8 13.6

Below BBB 1.6 0.3

Cash 1.7 N/A

10%

5%

0%

CUIT Int. Divers. Bond B Barclays Aggregate Bond Index

FUND PERFORMANCE


CUIT Int. Divers. Bond A 0.66 5.52 3.93 3.45 5.34

CUIT Int. Divers. Bond B 0.70 5.61 4.07 3.60 5.49

Barclays Aggregate Bond Index 0.46 5.19 4.03 3.08 4.79


CUIT Int. Divers. Bond A -0.13 5.65 -1.73 6.05 7.22

CUIT Int. Divers. Bond B -0.05 5.81 -1.51 6.21 7.39

Barclays Aggregate Bond Index 0.55 5.97 -2.02 4.22 7.84



RISK METRICS



Information Ratio 1.1 0.00






CUIT Int. Diversified Bond Fund

ALLOCATIONS %


Fund 33.5 1.1 17.7 12.7 1.4 0.0 22.0 1.4 3.0 4.2 1.3 1.7

Benchmark 36.2 4.0 15.8 8.0 2.0 2.9 27.7 0.0 1.7 0.5 1.2 0.0

Industrials ABS


Active Weights

-2.7%

Treasuries1.9%

Agency

-5.7%

MBS 1.4%CMO

0.1% 1.7%

Municipals Cash

4.7%

Finance -0.6%

Utilies Non-Corp.

CMBS

3.7%

Important InformationBenchmark Index: Barclays Capital 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. 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.

-2.9% -2.9%

1.3%


FUND FACTS

PROFILE Q3 2016


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 / 40% Barclays Capital 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 $51.6B $81.3B

Price/Book 2.0x 2.8x

Price/Earnings 17.2x 19.7x

Return on Equity 14.8% 17.6%

Dividend Yield 1.76% 2.08%

5-year Earnings Growth 8.25% 9.27%

Beta 1.11 1.00

10 Largest Holdings 23.91 6.85

# of Equity Securities 481 505

Turnover Rate 29.99 N/A

Fund Size $209.3MM

TOP TEN HOLDINGS

STATISTICS %

Bank of America Corporation 2.7

Microsoft Corporation 2.7

Wells Fargo & Company 2.5

Capital One Financial Corporation 2.5

Charles Schwab Corporation 2.4

Hewlett Packard Enterprise Co. 2.4

Comcast Corporation Class A 2.4

Charter Communications, Inc. Class A 2.2

Time Warner Inc. 2.2

UnitedHealth Group Incorporated 2.0

PORTFOLIO ANALYSIS: FIXED INCOME

STATISTICS FUND BCAGG



Average Quality AA AA




EFFECTIVE DURATION FUND BENCHMARK

< 1 Year 13.36 3.34

1–3 Years 27.86 36.84

3–5 Years 21.44 25.60

5–7 Years 9.91 11.00

7–10 Years 7.80 8.81

10-20 Years 11.59 14.41

> 20 Years 8.04 0.0

15%

10%

5%

0%

CUIT Balanced Fund 60% S&P 40% BC Agg

FUND PERFORMANCE

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

CUIT Balanced 4.71 10.57 6.88 11.18 6.02

60% S&P 40% BC Agg 2.49 11.43 8.42 11.05 6.56


CUIT Balanced -2.33 8.80 21.29 14.59 0.71

60% S&P 40% BC Agg 1.28 10.62 17.56 11.31 4.69




10

5

0

-5

-10

Christian Brothers Investment Services, Inc. n [email protected] PAGE 2 | CB -FFS-001-1016

Important InformationBenchmark Index: 60% S&P 500/40% BC Aggregate eff. 1/2/03; 60% S&P 500/30% LB Aggregate/10% T Bill eff. 4/1/91; 60% LB Aggregate/40% S&P 500 in prior periods. 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. “S&P 500” is a registered trademark of McGraw-Hill Companies, Inc. The CUIT Balanced Fund is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing in the Fund. 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 Balanced Fund


Active Weights

-8.1%

-2.3%

2.0%

5.0%

-0.3%-2.9%

-5.4%

1.6% 1.5%3.7%

0.1%

5.2%

TreasuriesMBS

CMO Municipals Cash

Agency

Industrials FinanceUtilities Non-Corp.

CMBS ABS

MARKET SECTOR ANALYSIS % – EQUITY

Consumer Discretionary

Consumer Staples Energy Financials Health Care Industrials

Information Technology Materials Real Estate

Telecomm Service Utilities Cash

Fund 16.4 5.3 9.6 22.4 10.3 5.7 21.8 1.8 1.2 1.7 1.3 2.5

Benchmark 12.3 9.9 7.2 12.9 14.6 9.8 21.5 2.9 3.0 2.6 3.2 0.0

MARKET SECTOR ANALYSIS % – FIXED INCOME


Fund 28.1 1.7 17.8 13.0 1.7 0.0 22.3 1.6 3.2 4.2 1.3 5.2

BC Agg 36.2 4.0 15.8 8.0 2.0 2.9 27.7 0.0 1.7 0.5 1.2 0.0


Active Weights

4.1% 0.3%

-4.6%

2.4%

9.5%

-4.3% -4.1%-1.1% -0.9% -1.9%-1.8%

2.5%


Information Technology

MaterialsCash

Consumer Staples

Energy Financials

Health Care IndustrialsTelecomm

Service UtilitiesReal

Estate


FUND FACTS

PROFILE Q3 2016


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

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 13.8 N/A

10 Largest Holdings 19.5 16.8



Fund Size $1,535.3MM

TOP TEN HOLDINGS

STATISTICS %

Apple Inc. 3.3


Exxon Mobil Corporation 2.0

Facebook, Inc. Class A 1.9

Amazon.com, Inc. 1.8

Procter & Gamble Company 1.8

3M Company 1.8

Berkshire Hathaway Inc. Class B 1.6

AT&T Inc. 1.4

JPMorgan Chase & Co. 1.4

20%

10%

0%

CUIT Core Equity B S&P 500

RISK METRICS



Information Ratio -0.1 N/A





FUND PERFORMANCE


CUIT Core Equity A 4.5 14.7 10.7 15.9 6.7

CUIT Core Equity B 4.5 14.9 10.9 16.1 6.9

S&P 500 3.9 15.4 11.2 16.4 7.2


CUIT Core Equity A 0.29 13.99 32.03 15.72 0.92

CUIT Core Equity B 0.50 14.19 32.31 15.95 1.13

S&P 500 1.38 13.69 32.39 16.00 2.11




Important InformationBenchmark Index: S&P 500. 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. “S&P 500” is a registered trademark of McGraw-Hill Companies, Inc. The CUIT Core Equity Index Fund is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing in the Fund. 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 Core Equity Index Fund


Active Weights0.7% 0.6%

0.1% 0.1% 0.1%0.0%

0.6%

-1.0%

-2.1%

0.2%0.3% 0.3%


InformationTechnology

Materials CashConsumerStaples

Energy Financials

Healthcare Industrials

TelecommService

RealEstate

Utilities

MARKET SECTOR ANALYSIS %


Consumer Staples Energy Financials Healthcare Industrials


TelecommService Utilities Cash

Fund 13.0 10.5 7.3 13.5 12.5 8.8 21.5 3.0 3.3 2.8 3.5 0.1

Benchmark 12.3 9.9 7.2 12.9 14.6 9.8 21.5 2.9 3.0 2.6 3.2 0.0


FUND FACTS

PROFILE Q3 2016


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 %

Bank of America Corporation 3.3

JPMorgan Chase & Co. 3.0


Capital One Financial Corporation 2.0

Hewlett Packard Enterprise Co. 1.9

Charles Schwab Corporation 1.9

Wal-Mart Stores, Inc. 1.8

Symantec Corporation 1.8

FedEx Corporation 1.8

Wells Fargo & Company 1.7

PORTFOLIO ANALYSIS


Weighted Median Market Cap $36.3B $56.51






Beta 1.1 1.0


10 Largest Holdings 21.5% 7.8%



Fund Size $357.4MM

RISK METRICS



Information Ratio 0.0 N/A






17%

16%

15%

10%

5%

0%

CUIT Value Equity B Russell 1000 Value Index

FUND PERFORMANCE


CUIT Value Equity A 6.85 9.01 6.73 15.04 5.07

CUIT Value Equity B 6.95 9.39 7.11 15.45 5.44

Russell 1000 Value Index 3.48 16.20 9.71 16.15 5.85


CUIT Value Equity A -3.58 9.57 38.32 19.15 -2.82

CUIT Value Equity B -3.26 9.97 38.80 19.54 -2.44

Russell 1000 Value Index -3.83 13.45 32.53 17.51 0.39



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. 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 Value Equity Fund


Active Weights

6.7%

-3.3%

-1.4%-2.1%

-0.9%

-2.7%

6.8%

-0.8%

-3.0%

-1.2

-3.4

1.0%



Materials Real Estate

Cash

ConsumerStaples Energy Financials Healthcare Industrials

TelecommService Utilities






Fund 11.6 5.6 12.1 25.5 10.6 6.8 16.8 2.1 2.2 2.7 3.1 1.0

Benchmark 4.9 8.9 13.5 23.4 11.5 9.5 10.0 2.9 5.1 3.9 6.5 0.0


FUND FACTS

PROFILE Q3 2016


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)




20%

15%

10%

5%

0%

CUIT Growth B Russell 1000 Growth Index

RISK METRICS








FUND PERFORMANCE


CUIT Growth A 4.01 12.21 10.93 15.65 7.31

CUIT Growth B 4.10 12.55 11.30 16.02 7.64

Russell 1000 Growth Index 4.58 13.76 11.83 16.60 8.85


CUIT Growth A 5.29 11.65 32.92 14.13 -1.92

CUIT Growth B 5.63 12.06 33.31 14.48 -1.62

Russell 1000 Growth Index 5.67 13.05 33.49 15.26 2.64



PORTFOLIO ANALYSIS








Beta 1.0 1.0





Fund Size $295.6MM

TOP TEN HOLDINGS

STATISTICS %

Apple Inc. 4.1

Alphabet Inc. Class C 3.1


Amazon.com, Inc. 2.5

Facebook, Inc. Class A 2.3

Amgen Inc. 2.0

PepsiCo, Inc. 1.9

Home Depot, Inc. 1.7

Oracle Corporation 1.5

Gilead Sciences, Inc. 1.4


Important InformationBenchmark Index: Russell 1000 Growth Index eff. June 1, 2000; prior to this date, historical returns reflect 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. 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 Growth Fund


Active Weights

-4.2%

-0.4%

1.1% 0.9%

-3.7%

-1.5%

6.6%

0.1% 0.1%0.3% 0.2%0.2%Consumer

DiscretionaryInformationTechnology

Materials CashReal Estate

ConsumerStaples

FinancialsEnergy

Healthcare Industrials

TelecommService

Utilities






Fund 16.4 9.2 1.8 3.7 13.1 8.9 38.1 3.7 3.2 1.3 0.3 0.2

Benchmark 20.6 9.6 0.6 2.7 16.8 10.4 31.5 3.6 2.9 1.2 0.1 0.0


FUND FACTS

PROFILE Q3 2016


CUIT Small Cap Equity Index Fund

Objective Long-term capital appreciation by attempting to replicate the performance of the Russell 2000 Index, a commonly used index of domestic small-capitaliza-tion stocks

InvestmentsCommon stocks of companies that generally comprise the Russell 2000 Index

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

BenchmarkRussell 2000 Index

Asset ManagersRhumbLine Advisers (Effective 1/07)




20%15%10%

5%0%

CUIT Small Cap B Russell 2000 Value Index

RISK METRICSCHARACTERISTICS FUND / 5 YR BENCHMARK / 5 YR


Information Ratio -0.1 N/A





FUND PERFORMANCE


CUIT Small Cap Equity Index A 8.86 14.92 6.22 15.15 –

CUIT Small Cap Equity Index B 8.99 15.27 6.55 15.53 –

Russell 2000 Index 9.05 15.47 6.71 15.82 –


CUIT Small Cap Equity Index A -4.75 4.46 38.05 15.42 -4.83

CUIT Small Cap Equity Index B -4.53 4.81 38.38 15.82 -4.58

Russell 2000 Index -4.41 4.90 38.82 16.35 -4.18


3 MO

1 YR

3 YR 5 YR 10 YR

PORTFOLIO ANALYSIS








Beta 1.0 1.0



# of Equity Securities 1,887 1,961


Fund Size $343.0MM

TOP TEN HOLDINGS

STATISTICS %

Microsemi Corporation 0.3

Advanced Micro Devices, Inc. 0.3

Curtiss-Wright Corporation 0.2

Gramercy Property Trust 0.2

Aspen Technology, Inc. 0.2

Healthcare Realty Trust Incorporated 0.2

Investors Bancorp Inc 0.2

IDACORP, Inc. 0.2

PAREXEL International Corporation 0.2

Sensient Technologies Corporation 0.2


Important InformationBenchmark Index: 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 Russell 2000 Index is a trademark/servicemark, and Russell is a trademark, of the Frank Russell Company. The Small Cap Index Fund is not sponsored, endorsed, sold or promoted by the Frank Russell Company, and the Frank Russell Company makes no representation regarding the advisability of investing in the Small Cap Index Fund. 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 Small Cap Equity Index Fund


Active Weights0.0% 0.0%

-0.2% -0.1%-0.2%

0.1%

0.0%0.0% 0.0%

0.4%Consumer Discretionary

InformationTechnology Materials

Cash

ConsumerStaples Energy

FinancialsHealthcare Industrials

TelecommService

Real Estate Utilities






Fund 12.6 2.8 3.2 17.5 14.0 14.1 18.1 4.7 8.2 0.7 3.7 0.4

Benchmark 12.6 3.0 3.2 17.4 14.2 14.1 18.1 4.7 8.2 0.7 3.8 0.0

0.00%0.0%


FUND FACTS

PROFILE Q3 2016


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: 1.43% / No minimumClass B: 0.99% / $5M




CUIT International Equity A 8.05 10.61 1.25 7.91 1.47

CUIT International Equity B 8.12 11.05 1.66 8.34 1.88

MSCI ACWI ex-U.S. 7.00 9.80 1.08 7.97 2.34


CUIT International Equity A -2.82 -5.11 22.03 19.16 -13.93

CUIT International Equity B -2.45 -4.72 22.49 19.67 -13.58

MSCI ACWI ex-U.S. -3.81 -4.49 23.30 17.90 -11.73

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.

RISK METRICS








GEOGRAPHIC DISTRIBUTION

INT'L INDEX

Europe 47.7 44.4

Pacific Basin 16.1 25.3

Emerging Markets 23.6 23.1

Other 12.5 7.2

20%

10%

5%

0%

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

FUND PERFORMANCE

3 MO1 YR

3 YR 5 YR 10 YR

PORTFOLIO ANALYSIS








Beta 0.9 1.0



# of Equity Securities 368 1,853


Fund Size $681.3MM

TOP TEN HOLDINGS

STATISTICS %

Taiwan Semiconductor Manufacturing Co., Ltd. 2.7

Tencent Holdings Ltd. 2.7

Nestle S.A. 2.3

KDDI Corporation 1.7

Chubb Limited 1.6

Canadian Pacific Railway Limited 1.5

Compass Group PLC 1.5

Akzo Nobel N.V. 1.4

HDFC Bank Limited Sponsored ADR 1.4

East Japan Railway Company 1.3


Important InformationBenchmark Index: The Fund’s benchmark was changed to MSCI All Country World Index (ACWI) ex-U.S. effective June 1, 2015. The benchmark performance shown reflects the linked performance of the prior benchmark (MSCI EAFE) through May 31, 2015 and MSCI ACWI ex-U.S. from June 1-December 31, 2015. Total Estimated Expense Ratio for Class B reflects the partial waiver of the Investment Management Fee so total expenses do not exceed 99 bps. 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. 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 International Equity Fund






Fund 12.7 12.0 5.4 15.0 7.8 14.8 15.7 6.4 1.1 4.3 2.2 2.5

Benchmark 11.4 11.1 6.6 21.6 8.6 11.7 9.6 7.5 3.5 4.9 3.4 0.0


Active Weights

1.3%0.9%

-1.1%

-2.4%

-1.2%

-6.6%

-0.8%

3.1%

6.1%

-0.6%-1.1%

2.5%



Materials Real Estate

CashConsumerStaples

Energy Financials Healthcare

Industrials

TelecommService Utilities



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

} CBIS pioneered Catholic Responsible Investingsm (CRI)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 CRI 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.

} CRI 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 020940-9683

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

Important Disclosures+ The CUIT Money Market Fund changed its investment approach from overnight repurchase agreements, to actively managed effective 8/1/01. ** Effective July 1, 2016, the benchmark for the CUIT Short Bond Fund (SBF) was changed to the Barclays Capital 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. ++ “S&P 500” is a registered trademark of McGraw-Hill Companies, Inc. (“McGraw-Hill”). The CUIT Core Equity Index Fund is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing in the fund. *** Benchmark Index: 60% S&P 500/40% BC Aggregate effective 1/2/03; 60% S&P 500/30% LB Aggregate/10% T Bill effective 4/1/91; 60% LB Aggregate/40% S&P 500 in prior periods. **** Benchmark Index: Russell 1000 Growth Index effective June 1, 2000; 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.

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

Documents

3Q 2016 Investment Portfolio Reviewcbisonline.com/.../2016/04/CBIS_INVEST_PORT_REVIEW_3Q16.pdf · 2016-11-01 · Christian Brothers Investment Services, Inc. n [email protected]