AUGUST 2023 MARKET INSIGHTS
The Knights of Columbus annual convention occurs the first Tuesday of August and as this was August 1, the convention was as early as it can possibly be. I was blessed to be elected to the Board of Directors at our 2018 convention in Baltimore and it really reenergizes me when I see Brother Knights and their families from around the country and indeed around the world. We enjoyed several special masses, our annual awards presentations at the States Dinner and an incredible address on the state of the Order from Supreme Knight Kelly.
I have also been blessed from being with the Knights for the incredible experiences I have had and the incredible people I have been able to meet in my nearly 18 years with the Order. At this convention, two of the greatest people I have ever met were honored at our convention. Father John Grace was awarded our St. Michael Service Award for his many years with the Knights, and he served as our first director for Knights of Columbus chaplains. He has been a blessing because he has been a true friend and our discussions on faith are too numerous to ever chronicle. I am sad as I type this because my dear friend has been recalled to Ireland and I am not sure when I will see him again. We had a chance for a final hug and well wishes. My first trip to Ireland may be on the table.
Mother Agnes, the first Mother Superior of the Sisters of Life, received the Gaudium et Spes award and this is the highest award from the Order. To put it in perspective, St. Teresa of Calcutta was the first recipient, so this is a pretty lofty award. Mother Agnes has become a friend since the Past Supreme Knight first asked me to advise the Sisters of Life on financial matters over 10 years ago. I am blessed by every encounter I have with Mother Agnes and all of the Sisters, and their work on supporting women in crisis pregnancies is a tremendous expression of Christ’s love and healing. Our Order is so blessed because of our special relationship with the Sisters. The picture below was after our opening mass, and I wanted to be sure that Karen and I got to have a photo with this tremendous woman who is such a special friend to us both.
Though I was in the oven that is Orlando, life and the markets continued to roll on. We continue to wrestle with the differing views on what type of recession we might encounter as well as the thought that we may have no recession at all. Certainly, annual GDP growth of 2.6%, up from 1.8% at the end of the first quarter suggests growth, perhaps not robust, but growth, nonetheless1. Unemployment remains low, at a level of 3.5% as of July and wages continue to grow2. These data points have many politicians and pundits focusing on the question of how can we have a recession with low unemployment, rising wages and a growth rate of 2.6%?
As we ponder this same issue, we are thinking about the lag effect of the interest rate hikes. Historically, it has taken 12 to 18 months for the full impact of rising interest rates to be felt by the economy. Also, while unemployment remains low and wages are high, inflation is still much higher than the Fed prefers. The CPI index stood at 3.0% annual growth as of the last release in June, and when one factors out food and energy, inflation is growing at an annual rate of 4.8% annually3. This is certainly below the peak we reached in June 2022, but we are still a long way from the 2.0% inflation target that is sought after by the Fed. Energy remains an important component for the economy both in terms of direct consumer demand and as an input for industrial production. At the end of June, crude oil was trading at $70.78 per barrel based on the September 2023 futures contract4. As I write this essay on August 7th, crude closed today at $82.82 per barrel on the same September futures contract. This represents a price increase of 16.5% in 38 days. We are starting to see prices creep up at the pump and higher energy prices will find their way into the CPI index. The point is that inflation is not dead yet and, in my opinion, the more serious Federal Reserve voting members still have further rate hikes on their minds.
The reason we believe that Fed hikes are not off the table is because longer term rates have started to meander higher. The 10-year Treasury ended the second quarter at a yield of 3.84% and it closed today at a yield of 4.09%5. That is a pretty sporty 25 basis point move in the span of five weeks. We are also seeing a flattening of the yield curve as the spread of rates between 2-year and 10-year Treasurys has become much less. On July 3rd, that spread was about 109 basis points and stood at 69 basis points as of the close today. If an inverted curve has traditionally indicated a recession, a positively sloped curve is one that is looking at inflation and also properly compensating investors with a term premium for investing longer.
I will leave the prognosticating on the depth and timing of a potential recession to others. We do however find ourselves increasingly focused on inflation drivers and these include a tight labor market, stubborn inflation, increasing wages and renewed upward pressure on energy prices. It is for these reasons that we do not think the Fed is quite finished…yet.
Until next month.
Source: Bloomberg
Source: Bloomberg
Source: Bloomberg
Source: Bloomberg
Source: Bloomberg
CORE BOND FUND
| One Month (As of 7/31/23) | YTD (As of 7/31/23) | 1 Year (As of 7/31/23) | 5 Years (As of 7/31/23) | Since Inception (As of 7/31/23) | |
|---|---|---|---|---|---|
|
Core Bond Fund-I Shares |
-0.12% |
1.80% |
-3.22% |
0.62% |
0.97% |
|
Bloomberg US Aggregate Bond Index |
-0.07% |
2.02% |
-3.37% |
0.75% |
0.91% |
|
Lipper Core Bond Fund Average |
0.06% |
2.27% |
-0.30% |
0.73% |
- |
|
Lipper Percentile Rank |
|
|
50% |
59% |
|
|
Core Bond Fund-I Shares |
|||||
One Month (As of 7/31/23) |
-0.12% |
||||
YTD (As of 7/31/23) |
1.80% |
||||
1 Year (As of 7/31/23) |
-3.22% |
||||
5 Years (As of 7/31/23) |
0.62% |
||||
Since Inception (As of 7/31/23) |
0.97% |
||||
|
Bloomberg US Aggregate Bond Index |
|||||
One Month (As of 7/31/23) |
-0.07% |
||||
YTD (As of 7/31/23) |
2.02% |
||||
1 Year (As of 7/31/23) |
-3.37% |
||||
5 Years (As of 7/31/23) |
0.75% |
||||
Since Inception (As of 7/31/23) |
0.91% |
||||
|
Lipper Core Bond Fund Average |
|||||
One Month (As of 7/31/23) |
0.06% |
||||
YTD (As of 7/31/23) |
2.27% |
||||
1 Year (As of 7/31/23) |
-0.30% |
||||
5 Years (As of 7/31/23) |
0.73% |
||||
Since Inception (As of 7/31/23) |
- |
||||
|
Lipper Percentile Rank |
|||||
One Month (As of 7/31/23) |
|
||||
YTD (As of 7/31/23) |
|
||||
1 Year (As of 7/31/23) |
50% |
||||
5 Years (As of 7/31/23) |
59% |
||||
Since Inception (As of 7/31/23) |
|
*Lipper Percentile Rank is based on total return performance. Lipper Category: Core Bond Funds. Number of Funds in Category: 521 (1 Year) and 459 (5 Year). Gross Expense Ratio 0.66%, Net Expense Ratio 0.50%.
LIMITED DURATION FUND
| One Month (As of 7/31/23) | YTD (As of 7/31/23) | 1 Year (As of 7/31/23) | 5 Years (As of 7/31/23) | Since Inception (As of 7/31/23) | |
|---|---|---|---|---|---|
|
Limited Duration Bond Fund-I Shares |
0.42% |
1.87% |
0.93% |
1.22% |
1.06% |
|
Bloomberg Government/Credit 1-3 Year Index |
0.42% |
1.56% |
0.42% |
1.21% |
1.02% |
|
Lipper Short Investment Grade Debt Fund Average |
0.62% |
2.45% |
1.59% |
1.36%% |
- |
|
Lipper Percentile Rank |
|
|
66% |
61% |
|
|
Limited Duration Bond Fund-I Shares |
|||||
One Month (As of 7/31/23) |
0.42% |
||||
YTD (As of 7/31/23) |
1.87% |
||||
1 Year (As of 7/31/23) |
0.93% |
||||
5 Years (As of 7/31/23) |
1.22% |
||||
Since Inception (As of 7/31/23) |
1.06% |
||||
|
Bloomberg Government/Credit 1-3 Year Index |
|||||
One Month (As of 7/31/23) |
0.42% |
||||
YTD (As of 7/31/23) |
1.56% |
||||
1 Year (As of 7/31/23) |
0.42% |
||||
5 Years (As of 7/31/23) |
1.21% |
||||
Since Inception (As of 7/31/23) |
1.02% |
||||
|
Lipper Short Investment Grade Debt Fund Average |
|||||
One Month (As of 7/31/23) |
0.62% |
||||
YTD (As of 7/31/23) |
2.45% |
||||
1 Year (As of 7/31/23) |
1.59% |
||||
5 Years (As of 7/31/23) |
1.36%% |
||||
Since Inception (As of 7/31/23) |
- |
||||
|
Lipper Percentile Rank |
|||||
One Month (As of 7/31/23) |
|
||||
YTD (As of 7/31/23) |
|
||||
1 Year (As of 7/31/23) |
66% |
||||
5 Years (As of 7/31/23) |
61% |
||||
Since Inception (As of 7/31/23) |
|
Lipper Percentile Rank is based on total return performance. Lipper Category: Short Investment Grade Debt Funds. Number of Funds in Category: 382 (1 Year) and 313 (5 Year). Gross Expense Ratio 0.66%, Net Expense Ratio 0.50%.
LARGE CAP GROWTH FUND
| One Month (As of 7/31/23) | YTD (As of 7/31/23) | 1 Year (As of 7/31/23) | 5 Years (As of 7/31/23) | Since Inception (As of 7/31/23) | |
|---|---|---|---|---|---|
|
Large Cap Growth Fund-I Shares |
2.78% |
30.38% |
13.48% |
10.18% |
10.37% |
|
Russell 1000 Growth Index |
3.37% |
33.36% |
17.31% |
15.23% |
15.05% |
|
Lipper Multi-Cap Growth Fund Average |
3.16% |
31.55% |
15.63% |
12.15% |
- |
|
Lipper Percentile Rank |
|
|
73% |
85% |
|
|
Large Cap Growth Fund-I Shares |
|||||
One Month (As of 7/31/23) |
2.78% |
||||
YTD (As of 7/31/23) |
30.38% |
||||
1 Year (As of 7/31/23) |
13.48% |
||||
5 Years (As of 7/31/23) |
10.18% |
||||
Since Inception (As of 7/31/23) |
10.37% |
||||
|
Russell 1000 Growth Index |
|||||
One Month (As of 7/31/23) |
3.37% |
||||
YTD (As of 7/31/23) |
33.36% |
||||
1 Year (As of 7/31/23) |
17.31% |
||||
5 Years (As of 7/31/23) |
15.23% |
||||
Since Inception (As of 7/31/23) |
15.05% |
||||
|
Lipper Multi-Cap Growth Fund Average |
|||||
One Month (As of 7/31/23) |
3.16% |
||||
YTD (As of 7/31/23) |
31.55% |
||||
1 Year (As of 7/31/23) |
15.63% |
||||
5 Years (As of 7/31/23) |
12.15% |
||||
Since Inception (As of 7/31/23) |
- |
||||
|
Lipper Percentile Rank |
|||||
One Month (As of 7/31/23) |
|
||||
YTD (As of 7/31/23) |
|
||||
1 Year (As of 7/31/23) |
73% |
||||
5 Years (As of 7/31/23) |
85% |
||||
Since Inception (As of 7/31/23) |
|
*Lipper Percentile Rank is based on total return performance. Lipper Category: Multi-Cap Growth Funds. Number of Funds in Category: 654 (1 Year) and 583 (5 Year). Gross Expense Ratio 0.90%, Net Expense Ratio 0.90%.
LARGE CAP VALUE FUND
| One Month (As of 7/31/23) | YTD (As of 7/31/23) | 1 Year (As of 7/31/23) | 5 Years (As of 7/31/23) | Since Inception (As of 7/31/23) | |
|---|---|---|---|---|---|
|
Large Cap Value Fund-I Shares |
2.35% |
8.65% |
8.39% |
7.45% |
8.05% |
|
Russell 1000 Value Index |
3.52% |
8.82% |
8.28% |
8.01% |
8.02% |
|
Lipper Multi-Cap Value Fund Average |
3.76% |
8.98% |
9.17% |
7.88% |
- |
|
Lipper Percentile Rank |
|
|
57% |
62% |
|
|
Large Cap Value Fund-I Shares |
|||||
One Month (As of 7/31/23) |
2.35% |
||||
YTD (As of 7/31/23) |
8.65% |
||||
1 Year (As of 7/31/23) |
8.39% |
||||
5 Years (As of 7/31/23) |
7.45% |
||||
Since Inception (As of 7/31/23) |
8.05% |
||||
|
Russell 1000 Value Index |
|||||
One Month (As of 7/31/23) |
3.52% |
||||
YTD (As of 7/31/23) |
8.82% |
||||
1 Year (As of 7/31/23) |
8.28% |
||||
5 Years (As of 7/31/23) |
8.01% |
||||
Since Inception (As of 7/31/23) |
8.02% |
||||
|
Lipper Multi-Cap Value Fund Average |
|||||
One Month (As of 7/31/23) |
3.76% |
||||
YTD (As of 7/31/23) |
8.98% |
||||
1 Year (As of 7/31/23) |
9.17% |
||||
5 Years (As of 7/31/23) |
7.88% |
||||
Since Inception (As of 7/31/23) |
- |
||||
|
Lipper Percentile Rank |
|||||
One Month (As of 7/31/23) |
|
||||
YTD (As of 7/31/23) |
|
||||
1 Year (As of 7/31/23) |
57% |
||||
5 Years (As of 7/31/23) |
62% |
||||
Since Inception (As of 7/31/23) |
|
*Lipper Percentile Rank is based on total return performance. Lipper Category: Multi-Cap Value Funds. Number of Funds in Category: 667 (1 Year) and 587 (5 Year). Gross Expense Ratio 0.90%, Net Expense Ratio 0.90%.
SMALL CAP FUND
| One Month (As of 7/31/23) | YTD (As of 7/31/23) | 1 Year (As of 7/31/23) | 5 Years (As of 7/31/23) | Since Inception (As of 7/31/23) | |
|---|---|---|---|---|---|
|
Small Cap Equity Fund-I Shares |
3.97% |
13.21% |
7.90% |
4.85% |
6.30% |
|
Russell 2000 Index |
6.12% |
14.70% |
7.91% |
5.09% |
7.37% |
|
Lipper Small Cap Fund Average |
3.48% |
15.64% |
7.84% |
6.80% |
- |
|
Lipper Percentile Rank |
|
|
48% |
82% |
|
|
Small Cap Equity Fund-I Shares |
|||||
One Month (As of 7/31/23) |
3.97% |
||||
YTD (As of 7/31/23) |
13.21% |
||||
1 Year (As of 7/31/23) |
7.90% |
||||
5 Years (As of 7/31/23) |
4.85% |
||||
Since Inception (As of 7/31/23) |
6.30% |
||||
|
Russell 2000 Index |
|||||
One Month (As of 7/31/23) |
6.12% |
||||
YTD (As of 7/31/23) |
14.70% |
||||
1 Year (As of 7/31/23) |
7.91% |
||||
5 Years (As of 7/31/23) |
5.09% |
||||
Since Inception (As of 7/31/23) |
7.37% |
||||
|
Lipper Small Cap Fund Average |
|||||
One Month (As of 7/31/23) |
3.48% |
||||
YTD (As of 7/31/23) |
15.64% |
||||
1 Year (As of 7/31/23) |
7.84% |
||||
5 Years (As of 7/31/23) |
6.80% |
||||
Since Inception (As of 7/31/23) |
- |
||||
|
Lipper Percentile Rank |
|||||
One Month (As of 7/31/23) |
|
||||
YTD (As of 7/31/23) |
|
||||
1 Year (As of 7/31/23) |
48% |
||||
5 Years (As of 7/31/23) |
82% |
||||
Since Inception (As of 7/31/23) |
|
*Lipper Percentile Rank is based on total return performance. Lipper Category: Small-Cap Core Funds. Number of Funds in Category: 681 (1 Year) and 602 (5 Year). Gross Expense Ratio 1.05%, Net Expense Ratio 1.05%.
INTERNATIONAL EQUITY FUND
| One Month (As of 7/31/23) | YTD (As of 7/31/23) | 1 Year (As of 7/31/23) | 5 Years (As of 7/31/23) | Since Inception (As of 7/31/23) | |
|---|---|---|---|---|---|
|
International Equity-I Shares |
2.03% |
10.96% |
7.88% |
3.05% |
4.88% |
|
FTSE All World Ex US Index |
4.14% |
14.03% |
13.88% |
4.54% |
4.92% |
|
Lipper International Multi-Cap Fund Average |
2.99% |
14.05% |
14.16% |
3.68% |
- |
|
Lipper Percentile Rank |
|
|
98% |
75% |
|
|
International Equity-I Shares |
|||||
One Month (As of 7/31/23) |
2.03% |
||||
YTD (As of 7/31/23) |
10.96% |
||||
1 Year (As of 7/31/23) |
7.88% |
||||
5 Years (As of 7/31/23) |
3.05% |
||||
Since Inception (As of 7/31/23) |
4.88% |
||||
|
FTSE All World Ex US Index |
|||||
One Month (As of 7/31/23) |
4.14% |
||||
YTD (As of 7/31/23) |
14.03% |
||||
1 Year (As of 7/31/23) |
13.88% |
||||
5 Years (As of 7/31/23) |
4.54% |
||||
Since Inception (As of 7/31/23) |
4.92% |
||||
|
Lipper International Multi-Cap Fund Average |
|||||
One Month (As of 7/31/23) |
2.99% |
||||
YTD (As of 7/31/23) |
14.05% |
||||
1 Year (As of 7/31/23) |
14.16% |
||||
5 Years (As of 7/31/23) |
3.68% |
||||
Since Inception (As of 7/31/23) |
- |
||||
|
Lipper Percentile Rank |
|||||
One Month (As of 7/31/23) |
|
||||
YTD (As of 7/31/23) |
|
||||
1 Year (As of 7/31/23) |
98% |
||||
5 Years (As of 7/31/23) |
75% |
||||
Since Inception (As of 7/31/23) |
|
* Lipper Percentile Rank is based on total return performance. Lipper Category: International Multi-Cap Core. Number of Funds in Category: 333 (1 Year) and 272 (5 Year). Gross Expense Ratio 1.16%, Net Expense Ratio 1.10%.
REAL ESTATE FUND
| One Month (As of 7/31/23) | YTD (As of 7/31/23) | 1 Year (As of 7/31/23) | 3 Years (As of 7/31/23) | Since Inception (As of 7/31/23) | |
|---|---|---|---|---|---|
|
Real Estate-I Shares |
1.26% |
6.52% |
-10.62%% |
7.83% |
3.80% |
|
FTSE Nareit Equity REITs Index |
2.85% |
8.37% |
-5.82% |
8.49% |
1.83% |
|
Lipper Real Estate Average |
2.01% |
6.81% |
-8.40% |
5.70% |
- |
|
Lipper Percentile Rank |
|
75% |
16% |
|
|
|
Real Estate-I Shares |
|||||
One Month (As of 7/31/23) |
1.26% |
||||
YTD (As of 7/31/23) |
6.52% |
||||
1 Year (As of 7/31/23) |
-10.62%% |
||||
3 Years (As of 7/31/23) |
7.83% |
||||
Since Inception (As of 7/31/23) |
3.80% |
||||
|
FTSE Nareit Equity REITs Index |
|||||
One Month (As of 7/31/23) |
2.85% |
||||
YTD (As of 7/31/23) |
8.37% |
||||
1 Year (As of 7/31/23) |
-5.82% |
||||
3 Years (As of 7/31/23) |
8.49% |
||||
Since Inception (As of 7/31/23) |
1.83% |
||||
|
Lipper Real Estate Average |
|||||
One Month (As of 7/31/23) |
2.01% |
||||
YTD (As of 7/31/23) |
6.81% |
||||
1 Year (As of 7/31/23) |
-8.40% |
||||
3 Years (As of 7/31/23) |
5.70% |
||||
Since Inception (As of 7/31/23) |
- |
||||
|
Lipper Percentile Rank |
|||||
One Month (As of 7/31/23) |
|
||||
YTD (As of 7/31/23) |
75% |
||||
1 Year (As of 7/31/23) |
16% |
||||
3 Years (As of 7/31/23) |
|
||||
Since Inception (As of 7/31/23) |
|
* Lipper Percentile Rank is based on total return performance. Lipper Category: Real Estate Number of Funds in Category: 245 (1 Year) and 228 (3 Year). Gross Expense Ratio 1.07%, Net Expense Ratio 1.00%.
Long-Short Equity Fund
| One Month (As of 7/31/23) | YTD (As of 7/31/23) | 1 Year (As of 7/31/23) | 3 Years (As of 7/31/23) | Since Inception (As of 7/31/23) | |
|---|---|---|---|---|---|
|
Long-Short Equity – I Shares |
0.85% |
0.81% |
4.84% |
9.08% |
4.09% |
|
HFRX Equity Market Neutral Developed Index |
-0.55% |
0.34% |
2.40% |
1.45% |
-0.90% |
|
Lipper Alternative Long/Short Average |
1.69% |
7.25% |
6.63% |
7.56% |
- |
|
Lipper Percentile rank |
|
|
58% |
36% |
|
|
Long-Short Equity – I Shares |
|||||
One Month (As of 7/31/23) |
0.85% |
||||
YTD (As of 7/31/23) |
0.81% |
||||
1 Year (As of 7/31/23) |
4.84% |
||||
3 Years (As of 7/31/23) |
9.08% |
||||
Since Inception (As of 7/31/23) |
4.09% |
||||
|
HFRX Equity Market Neutral Developed Index |
|||||
One Month (As of 7/31/23) |
-0.55% |
||||
YTD (As of 7/31/23) |
0.34% |
||||
1 Year (As of 7/31/23) |
2.40% |
||||
3 Years (As of 7/31/23) |
1.45% |
||||
Since Inception (As of 7/31/23) |
-0.90% |
||||
|
Lipper Alternative Long/Short Average |
|||||
One Month (As of 7/31/23) |
1.69% |
||||
YTD (As of 7/31/23) |
7.25% |
||||
1 Year (As of 7/31/23) |
6.63% |
||||
3 Years (As of 7/31/23) |
7.56% |
||||
Since Inception (As of 7/31/23) |
- |
||||
|
Lipper Percentile rank |
|||||
One Month (As of 7/31/23) |
|
||||
YTD (As of 7/31/23) |
|
||||
1 Year (As of 7/31/23) |
58% |
||||
3 Years (As of 7/31/23) |
36% |
||||
Since Inception (As of 7/31/23) |
|
*Lipper Percentile Rank is based on total return performance. Lipper Category: Alternative Long/Short Equity Number of Funds in Category: 222 (1 Year) and 200 (3 Year). Gross Expense Ratio 2.15, Net Expense Ratio 2.06%.
U.S. ALL CAP INDEX FUND
| One Month (As of 7/31/23) | YTD (As of 7/31/23) | 1 Year (As of 7/31/23) | 3 Years (As of 7/31/23) | Since Inception (As of 7/31/23) | |
|---|---|---|---|---|---|
|
U.S. All Cap Index – I Shares |
3.86% |
23.34% |
14.54% |
14.02% |
12.05% |
|
Knights of Columbus U.S. All Cap Index |
3.89% |
23.31% |
14.71% |
14.25% |
13.39% |
|
Lipper Multi-Cap Core Average |
3.08% |
16.20% |
10.19% |
11.29% |
- |
|
Lipper Percentile rank |
|
|
11% |
17% |
|
|
U.S. All Cap Index – I Shares |
|||||
One Month (As of 7/31/23) |
3.86% |
||||
YTD (As of 7/31/23) |
23.34% |
||||
1 Year (As of 7/31/23) |
14.54% |
||||
3 Years (As of 7/31/23) |
14.02% |
||||
Since Inception (As of 7/31/23) |
12.05% |
||||
|
Knights of Columbus U.S. All Cap Index |
|||||
One Month (As of 7/31/23) |
3.89% |
||||
YTD (As of 7/31/23) |
23.31% |
||||
1 Year (As of 7/31/23) |
14.71% |
||||
3 Years (As of 7/31/23) |
14.25% |
||||
Since Inception (As of 7/31/23) |
13.39% |
||||
|
Lipper Multi-Cap Core Average |
|||||
One Month (As of 7/31/23) |
3.08% |
||||
YTD (As of 7/31/23) |
16.20% |
||||
1 Year (As of 7/31/23) |
10.19% |
||||
3 Years (As of 7/31/23) |
11.29% |
||||
Since Inception (As of 7/31/23) |
- |
||||
|
Lipper Percentile rank |
|||||
One Month (As of 7/31/23) |
|
||||
YTD (As of 7/31/23) |
|
||||
1 Year (As of 7/31/23) |
11% |
||||
3 Years (As of 7/31/23) |
17% |
||||
Since Inception (As of 7/31/23) |
|
*Lipper Percentile Rank is based on total return performance. Lipper Category: Multi-Cap Core Number of Funds in Category: 654 (1 Year) and 582 (3 Year). Gross Expense Ratio 0.60%, Net Expense Ratio 0.25%.
The performance data quoted represents past performance. Past performance is not a guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth less than their original cost and current performance may be higher or lower than the performance quoted. Investment performance does not reflect the redemption fee; if it was reflected, the total return would be lower than shown. For performance data current to the most recent month end, please call 1-844-KC-FUNDS.
Fund performance for the 1 year, 5 year, and Since Inception periods are annualized. The inception date for Limited Duration, Core Bond, Large Cap Growth, Large Cap Value, Small Cap, and International are February 27, 2015. 5-year fund performance is not available for the Real Estate Fund, Long/Short Equity, or the U.S. All Cap Index since the funds’ inception dates are September 30, 2019, December 21, 2019, and December 31, 2019, respectively.
Effective July 21, 2020, the Knights of Columbus Real Estate Fund underwent a change in its Investment Objective and a name change to reflect the new investment strategy as detailed in The Funds’ Prospectus update of July 20, 2020. The Fund was formerly known as Knights of Columbus Global Real Estate Fund. Results prior to July 20, 2020, reflect the performance of the Fund's previous strategy.
Knights of Columbus Asset Advisors LLC has contractually agreed to waive fees and/or to reimburse expenses to the extent necessary to keep Total Annual Fund Operating Expenses, (excluding interest, taxes, fund brokerage commissions, acquired fund fees and expenses and non-routine expenses) from exceeding the Net Expense Ratio for the respective Funds’ Institutional Shares average daily net assets until February 28, 2024.
BENCHMARK DEFINITIONS
Bloomberg Government/Credit 1-3 Year Index – benchmark for Limited Duration Fund
The U.S. Government/Credit Index is the non-securitized component of the U.S. Aggregate Index and was the first macro index launched by Barclays Capital. The U.S. Government/Credit Index includes Treasuries (i.e., public obligations of the U.S. Treasury that have remaining maturities of more than one year), government-related issues (i.e., agency, sovereign, supranational, and local authority debt), and corporates. The U.S. Government/Credit Index was launched on January 1, 1979 and is a subset of the U.S. Aggregate Index. The 1-3 year index includes all medium and larger issues of U.S. government, investment-grade corporate, and investment-grade international dollar-denominated bonds that have maturities of between 1 and 3 years and are publicly issued.
Bloomberg US Aggregate Bond Index – benchmark for Core Bond Fund
The Bloomberg US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency). Provided the necessary inclusion rules are met, US Aggregate eligible securities also contribute to the multi-currency Global Aggregate Index and the US Universal Index, which includes high yield and emerging markets debt. The US Aggregate Index was created in 1986.
FTSE All-World Ex-U.S. Index – benchmark for International Equity Fund
The FTSE All-World ex US Index is one of a number of indexes designed to help investors benchmark their international investments. The index comprises Large and Mid cap stocks providing coverage of Developed and Emerging Markets excluding the US. The index is derived from the FTSE Global Equity Index Series (GEIS), which covers 98% of the world’s investable market capitalization.
Russell 1000 Growth Index – benchmark for Large Cap Growth Fund
The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Growth Index is constructed to provide a comprehensive and unbiased barometer for the large-cap growth segment. The Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect growth characteristics.
Russell 1000 Value Index – benchmark for Large Cap Value Fund
The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values. The Russell 1000 Value Index is constructed to provide a comprehensive and unbiased barometer for the large-cap value segment. The Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect value characteristics.
Russell 2000 Index – benchmark for Small Cap Fund
The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000 is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set.
FTSE Nareit Equity REITs Index – benchmark for Real Estate Fund
The FTSE Nareit Equity REITs Index contains all Equity REITs not designated as Timber REITs or Infrastructure REITs. Prior to December 2010, the index included Timber REITs and Infrastructure REITs.
HFRX Equity Market Neutral Index – benchmark for Long/Short Equity Fund
HFRX Equity Market Neutral Index The HFRX Equity Market Neutral Index employs sophisticated quantitative techniques of analyzing price data to ascertain information about future price movement and relationships between securities, select securities for purchase and sale. These can include both Factor-based and Statistical Arbitrage/Trading Strategies.
Knights of Columbus U.S. All Cap Index – benchmark for U.S. All Cap Index Fund
Knights of Columbus U.S. All Cap Index Adheres to the United States Conference of Catholic Bishops’ Socially Responsible Investment Guidelines. Consists of all common stocks and real estate investment trusts in the Solactive US Broad Market Index excluding companies that are determined by Institutional Shareholder.
Bloomberg®, Bloomberg 1-3 Year U.S. Government/Credit Index and Bloomberg US Aggregate Bond Index are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the index (collectively, “Bloomberg”) and have been licensed for use for certain purposes by Knights of Columbus Asset Advisors. Bloomberg is not affiliated with Knights of Columbus Asset Advisors, and Bloomberg does not approve, endorse, review, or recommend any Knights of Columbus Funds. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to Knights of Columbus Funds.
Indices are unmanaged and do not reflect the effect of fees. One cannot invest directly in an index.
LIPPER PEER GROUP DEFINITIONS
Lipper Short Investment Grade Debt Classification – peer group for Limited Duration Fund
Funds that invest primarily in investment-grade debt issues (rated in the top four grades) with dollar-weighted average maturities of less than three years. The Limited Duration Bond fund ranked 200 out of 378 funds measured for the one-year ranking period and ranked 175 out of 307 funds measured for the five-year ranking period as of June 30, 2023.
Lipper Core Bond Classification – peer group for Core Bond Fund
Funds that invest at least 85% in domestic investment-grade debt issues (rated in the top four grades) with any remaining investment in non-benchmark sectors such as high-yield, global and emerging market debt. These funds maintain dollar-weighted average maturities of five to ten years. The Core Bond fund ranked 359 out of 516 funds measured for the one-year ranking period and ranked 260 out of 456 funds measured for the five-year ranking period as of June 30, 2023.
Lipper Multi-Cap Growth Classification – peer group for Large Cap Growth Fund
Funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap growth funds typically have above-average characteristics compared to the S&P SuperComposite 1500 Index. The Large Cap Growth fund ranked 478 out of 652 funds measured for the one-year ranking period ranked and 493 out of 580 funds measured for the five-year ranking period as of June 30, 2023.
Lipper Multi-Cap Value Classification – peer group for Large Cap Value Fund
Funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap value funds typically have below-average characteristics compared to the S&P SuperComposite 1500 Index. The Large Cap Value fund ranked 228 out of 660 funds measured for the one-year ranking period and ranked 338 out of 581 funds measured for the five-year ranking period as of June 30, 2023.
Lipper Small-Cap Core Classification – peer group for Small Cap Fund
Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) below Lipper’s USDE small-cap ceiling. Small cap core funds have more latitude in the companies in which they invest. These funds typically have average characteristics compared to the S&P SmallCap 600 Index. The Small Cap Equity fund ranked 599 out of 701 funds measured for the one-year ranking period and ranked 532 out of 619 funds measured for the five-year ranking period as of June 30, 2023.
Lipper International Multi-Cap Core Classification – peer group for International Equity Fund
Funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. International multi-cap funds typically have characteristics compared to the MSCI EAFE Index. The International Equity fund ranked 327 out of 337 funds measured for the one-year ranking period and ranked 204 out of 267 funds measured for the five-year ranking period as of June 30, 2023.
Lipper Real Estate Classification – peer group for Real Estate Fund
Funds invest primarily in equity securities of domestic and foreign companies engaged in the real estate industry. The Real Estate fund ranked 132 out of 248 funds measured for the one-year ranking and ranked 28 out of 230 funds measured for the three-year ranking period as of June 30, 2023.
Lipper Alternative Long/Short Equity Classification – peer group for Long/Short Equity Fund
Funds that employ portfolio strategies combining long holdings of equities with short sales of equities, equity options or equity index options. The funds may be either net long or net short, depending on the portfolio manager’s view of the market. The Long/Short fund ranked 170 out of 222 funds measured for the one-year ranking and ranked 99 out of 199 funds measured for the three-year ranking period as of June 30, 2023.
Lipper Multi-Cap Core Classification – peer group for U.S. All Cap Index Fund
Funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market-capitalization range over an extended period of time. The U.S. All Cap Index fund ranked 139 out of 660 funds measured for the one-year ranking period and ranked 100 out of 588 funds measured for the three-year ranking as of June 30, 2023.