CUIT Annual Report 12-31-2013 Final
Total Page:16
File Type:pdf, Size:1020Kb
CATHOLIC UNITED INVESTMENT TRUST ANNUAL REPORT (AUDITED) December 31, 2013 CATHOLIC UNITED INVESTMENT TRUST TABLE OF CONTENTS Page REPORT OF INDEPENDENT AUDITORS 1-2 Statements of Assets and Liabilities 3-4 Schedule of Investments: Flex Cash Fund 5-7 Short Bond Fund 8-11 Intermediate Diversified Bond Fund 12-20 Opportunistic Bond Fund 21-25 Balanced Fund 26-35 Value Equity Fund 36-38 Core Equity Index Fund 39-45 Growth Fund 46-49 International Equity Fund 50-54 Small Capitalization Equity Index Fund 55-71 Statements of Operations 72-74 Statements of Changes in Net Assets 75-77 NOTES TO FINANCIAL STATEMENTS 78-89 FINANCIAL HIGHLIGHTS 90-92 Crowe Horwath LLP Independent Member Crowe Horwath International INDEPENDENT AUDITOR'S REPORT To the Members of the Board of Trustees and Unit-holders of Catholic United Investment Trust Report on the Financial Statements We have audited the accompanying financial statements of Catholic United Investment Trust – Flex Cash Fund, Short Bond Fund, Intermediate Diversified Bond Fund, Balanced Fund, Value Equity Fund, Core Equity Index Fund, Growth Fund, International Equity Fund, Small Capitalization Equity Index Fund, and Opportunistic Bond Fund (the “Trust”), which comprise the statement of assets and liabilities as of December 31, 2013, the schedule of investments as of December 31, 2013, the related statements of operations and statements of changes in net assets for the periods ended December 31, 2013 and 2012 (period ended December 31, 2013 only for Opportunistic Bond Fund), the financial highlights for the periods ended December 31, 2013 and 2012 (period ended December 31, 2013 only for Opportunistic Bond Fund), and the related notes to the financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. (Continued) 1. Opinion In our opinion, the financial statements, the schedule of investments and financial highlights referred to above present fairly, in all material respects, the assets and liabilities of Catholic United Investment Trust Flex Cash Fund, Short Bond Fund, Intermediate Diversified Bond Fund, Balanced Fund, Value Equity Fund, Core Equity Index Fund, Growth Fund, International Equity Fund, Small Capitalization Equity Index Fund, and Opportunistic Bond Fund as of December 31, 2013, the results of its operations and changes in its net assets for the periods ended December 31, 2013 and 2012 (period ended December 31, 2013 only for Opportunistic Bond Fund), and the financial highlights for the periods ended December 31, 2013 and 2012, in accordance with accounting principles generally accepted in the United States of America. Crowe Horwath LLP South Bend, Indiana March 5, 2014 2. CATHOLIC UNITED INVESTMENT TRUST STATEMENT OF ASSETS AND LIABILITIES AS OF DECEMBER 31, 2013 (Amounts in thousands, except per trust unit amounts) Intermediate Diversified Bond Opportunistic Bond ASSETS: Flex Cash Fund Short Bond Fund Fund Fund Investments, at amortized cost $ 93,698 $ 263,231 $ 818,053 $ 247,679 Investments, at fair value $ 93,698 $ 262,930 $ 819,795 $ 247,104 Cash 1,253 - 156 7,721 Receivables: Investment securities sold - 23 51 5 Interest 57 1,675 5,456 1,432 Dividends - - - 1 Tax Reclaims Dividends - - - - Trust units sold - 107 3,472 1,028 Prepaid Expenses - - - - Total assets 95,008 264,735 828,930 257,291 LIABILITIES: Payables: Cash Overdraft - - - - Investment securities purchased - - - 122 Investment advisory and administrative fees 21 67 285 83 Other fees 40 15 54 15 Unrealized loss on forward foreign currency contracts - - - - Securities sold short at fair value (proceeds $3,477) - - - 3,677 Trust units redeemed - 742 185 25 61 824 524 3,922 NET ASSETS $ 94,947 $ 263,911 $ 828,406 $ 253,369 NET ASSETS CONSIST OF: Paid-in capital Accumulated undistributed net investment income (loss) $ 94,959 $ 259,357 $ 691,524 $ 254,028 Accumulated net realized gain (loss) - - - - Net unrealized appreciation (depreciation) (12) 4,855 134,087 116 on investments and future contracts Net unrealized gain (loss) on forward foreign - (301) 2,795 (775) currency contracts NET ASSETS - - - - $ 94,947 $ 263,911 $ 828,406 $ 253,369 TRUST UNITS OUTSTANDING 94,959 23,613 61,644 25,540 NET ASSET VALUE PER TRUST UNIT OUTSTANDING $ 1.00 $ 11.18 N/A N/A CLASS A SHARES Net Assets Applicable to Trust Units Outstanding Trust Units Outstanding N/A N/A $ 305,721 $ 74,357 Net Asset Value Per Trust Unit Outstanding N/A N/A 22,742 7,495 N/A N/A $ 13.44 $ 9.92 CLASS B SHARES Net Assets Applicable to Trust Units Outstanding N/A N/A $ 522,685 $ 179,012 Trust Units Outstanding N/A N/A 38,902 18,045 Net Asset Value Per Trust Unit Outstanding N/A N/A $ 13.44 $ 9.92 See notes to financial statements. 1 CATHOLIC UNITED INVESTMENT TRUST STATEMENT OF ASSETS AND LIABILITIES AS OF DECEMBER 31, 2013 (Amounts in thousands, except per trust unit amounts) Small Capitalization Value Equity Core Equity International Equity Index ASSETS: Balanced Fund Fund Index Fund Growth Fund Equity Fund Fund Investments, at amortized cost $ 175,423 $ 290,337 $ 923,577 $ 226,386 $ 421,865 $ 229,555 Investments, at fair value $ 222,558 $ 401,970 $ 1,299,947 $ 305,517 $ 514,762 $ 336,893 Cash - - 626 - 63 - Receivables: Investment securities sold 949 310 - 622 384 - Interest 527 - - - - - Dividends 153 441 1,285 184 276 402 Tax Reclaims Dividends - - - - 653 - Trust units sold 143 10,367 86 86 975 64 Prepaid Expenses 9 - 11 - - - Total assets 224,339 413,088 1,301,955 306,409 517,113 337,359 LIABILITIES: Payables: Cash Overdraft 68 - - - - 7 Investment securities purchased 541 429 - 1,053 - - Investment advisory and administrative fees 148 279 182 248 485 85 Other fees 20 21 48 27 52 16 Unrealized loss on forward foreign currency contracts - - - - - - Trust units redeemed 7 11,439 1,644 855 1,633 846 Total liabilities 784 12,168 1,874 2,183 2,170 954 NET ASSETS $ 223,555 $ 400,920 $ 1,300,081 $ 304,226 $ 514,943 $ 336,405 NET ASSETS CONSIST OF: Paid-in capital $ (21,337) $ 93,093 $ 675,317 $ 67,960 $ 156,633 $ 188,023 Accumulated undistributed net investment income (loss) (4) - - (5,264) 63,835 18,597 Accumulated net realized gain (loss) 197,760 196,193 248,242 162,399 201,578 22,448 Net unrealized appreciation (depreciation) on investments and future contracts 47,136 111,634 376,522 79,131 92,908 107,337 Net unrealized gain (loss) on forward foreign currency contracts - - - - (11) - NET ASSETS $ 223,555 $ 400,920 $ 1,300,081 $ 304,226 $ 514,943 $ 336,405 TRUST UNITS OUTSTANDING 3,222 7,909 30,955 4,918 14,941 21,154 NET ASSET VALUE PER TRUST UNIT OUTSTANDING $ 69.38 N/A N/A N/A N/A N/A CLASS A SHARES Net Assets Applicable to Trust Units Outstanding N/A $ 202,947 $ 132,337 $ 185,353 $ 181,642 $ 114,948 Trust Units Outstanding N/A 4,000 3,151 3,034 5,465 7,319 Net Asset Value Per Trust Unit Outstanding N/A $ 50.74 $ 42.00 $ 61.09 $ 33.24 $ 15.71 CLASS B SHARES Net Assets Applicable to Trust Units Outstanding N/A $ 197,973 $ 1,167,744 $ 118,873 $ 333,301 $ 221,457 Trust Units Outstanding N/A 3,909 27,804 1,884 9,476 13,835 Net Asset Value Per Trust Unit Outstanding N/A $ 50.65 $ 42.00 $ 63.12 $ 35.18 $ 16.01 See notes to financial statements. 2 CATHOLIC UNITED INVESTMENT TRUST SCHEDULE OF INVESTMENTS FLEX CASH FUND DECEMBER 31, 2013 The Portfolio Portfolio Asset Mix (% of Net Assets) Fixed Income Securities Asset Backed Securities 34.28% Certificates of Deposit 1.58% Corporate Obligations 56.26% Repurchase Agreements 0.74% U.S. Agency Obligations 5.83% 3 CATHOLIC UNITED INVESTMENT TRUST SCHEDULE OF INVESTMENTS FLEX CASH FUND DECEMBER 31, 2013 Principal Percent of Amortized Principal Percent of Amortized Amount Net Assets Cost (000's) Amount Net Assets Cost (000's) Asset Backed Securities 34.28% Asset