JANUARY 2023 MARKET INSIGHTS

By: ANTHONY MINOPOLI , PRESIDENT & CHIEF INVESTMENT OFFICER

I will ask for your indulgence regarding the length of this month’s Market Insights. This is not only a 2022 recap and a preview of 2023, but I also need to say goodbye to Neill Jordan, a Knights of Columbus employee for over 35 years, an important part of our investment team, and a tremendously valued friend.

The S&P 500 returned 7.5% during the fourth quarter but was down greater than 18% for the year1 . In this column, we have discussed the headwinds for the markets including the war in Ukraine, general inflation, wage growth, energy prices and China’s Covid policy. While these factors all weighed on the market in 2022, there is little evidence that suggests these items will not continue to be challenges for 2023. In many respects, the recent $1.7 trillion spending bill may only be adding further gasoline to the fire of excess spending2 .

The bond market was worse than any year since I first started as an intern at Evaluation Associates LLC (EAI) in 1987. We entered 2022 with the 10-year Treasury Note yielding 1.51%3 . The 10-year note peaked at 4.24% on October 24th and ended the year at 3.88%2 . A 237-basis point move from the start of the year to the end weighed heavily on bond and balanced fund investors. The Bloomberg Aggregate Bond Index returned 1.87% in the fourth quarter as rates eased from the year’s high; however, the bond market returned -13.01% for the year5 . Not too many places for investors to hide.

Though inflation is down from its high, headline Consumer Price Inflation (CPI) read 7.1% in November and was still 6.0% factoring out food and energy 6. Inflation is still very far away from the Federal Reserve’s (Fed) desired level. Most of the major economic indicators are showing declines and this includes weakening Industrial Production, Capacity Utilization, Factory Orders and Durable Goods Orders. Many of these economic indicators benefitted from the excessive stimulus that was borne from Covid. Even though the federal government had distributed significant portions of this stimulus in previous years, some of the largesse was still working through the states’ spending systems and this supported economic activity, consumer and business spending and, ultimately, inflation.

When the team returned on January 3rd and resumed our standard morning market debrief, Nick Gentile pointed out that the consensus is looking for a soft and quick recession. As market professionals, we do not claim to have a unique vision on the immediate future of the economy, but we do know that the consensus is more often wrong than not. As a practical matter, the Fed will not likely pause from hiking the Federal Funds rate until such a time that they feel inflation is under control. In our opinion, the equity and bond markets have repriced to an extent with stocks down 18% last year (as measured by the S&P 500) and the aggregate bond market down 13% (as measured by the Bloomberg Aggregate Bond Index).

Housing certainly has not repriced, and I use my hometown as an example. I am a real estate aficionado and constantly review real estate websites to see the volume of properties for sale and the number of homes on the market. In normal times, there are typically 80-100 houses for sale and there are currently 40. There have been some modest price reductions, but nothing on the order to compare to what we are seeing in other asset markets. My focus on behavioral finance leads me to believe that if we move into a recessionary environment and we start seeing a capitulation in the housing market, this event could both deepen and lengthen a recession. The caveat to this premise is that during the Great Financial Crisis, we were not building new residential housing and it has been estimated that there is a shortage of about 5 million units across the country 7. It is for this reason that we continue to see strength in residential housing.

We have been watching consumer debt and delinquencies on credit cards and autos as a means of providing a signal on the health of the consumer. Economists love to speak about things in terms of “the aggregate” and on that basis the economy still seems fine. There are certainly pockets of weakness beneath the surface. We do not believe this is a 2008-2009 environment because the banking system is in much better shape, however, we do believe that a recession is the most likely scenario in 2023. We are still evaluating the depth and severity of a recession. It is important to remember that asset prices will not bottom or rise coincident with the start or end of a recession, and this is the reason we continue to stick to our mantra of avoiding market timing and focusing on asset allocation structures designed to meet investors’ long-term goals.

In 2002, my old firm was retained to provide pension consulting services to Knights of Columbus (Knights). I developed an excellent personal relationship with Charlie Walden, my predecessor at the Knights. In getting to know Charlie, I also got to know the entire investment staff. In 2005, I joined the Knights to lead the investment operation and went from knowing Neill as a senior investment person at a client to working with him directly. Neill was always the steady to my more frenetic pace and his more introverted style stood in pretty stark contrast to my extroverted style.

I knew Neill to be an immensely talented portfolio manager and, despite being the oldest person in the department (sorry buddy, I couldn’t resist!), was the one who embraced and used technology more than anyone. When our Bloomberg representative would visit to show us the newest functions, Neill would politely let him know that he not only knew about the change but had already implemented the new function. Neill has always been my “go to” guy to vet investment ideas, vent about frustrations and chat about market news. Neill and I did not always agree on everything, but, in more than 17 years of working together, we never had an argument and always found a way forward. Together, we survived the Great Financial Crisis and a global pandemic (at least so far!) and I will forever be thankful for his desire to always do his best and to always go above and beyond. The Structured Team is in great hands with Nick Gentile, especially given their 10 years together. The Knights of Columbus is certainly not better off without Neill; however, we are definitely better for the time, effort, dedication and thoughtfulness he brought each and every day. The Tuesday lunches with Neill and Gil Marchand were highlights of my week when we discussed the department, markets and spoke about our families. Thank you, Neill. Thank you for all that you gave us, but more importantly, thank you for who you are. I look forward to remaining in touch in the years to come. Enjoy your growing brood of grandchildren, your time at your lake house and a long retirement with Mary Beth and your family.

We bid farewell to a great colleague and friend and greet 2023 with hope and expectations for our families, ourselves and, maybe, our portfolios too!

Until next year!

[1] Source: Bloomberg, as of December 31, 2022

[2] Source: https://www.cnbc.com/2022/12/23/us-house-passes-1point7-trillion-bill-to-fund-government-through-september-sending-it-to-bidens-desk-.html

[3] Source: Bloomberg

[4] Source: Bloomberg

[5] Source: Bloomberg

[6] Source: Bloomberg, as of November 2022

[7] Source: https://www.cnbc.com/2021/09/14/america-is-short-more-than-5-million-homes-study-says.html

CORE BOND FUND

	One Month ( As of 12/31/22)	YTD ( As of 12/31/22)	1 Year ( As of 12/31/22)	5 Years ( As of 12/31/22)	Since Inception ( As of 12/31/22)
Core Bond Fund-I Shares	-0.51%	-14.31%	-14.31%	-0.09%	0.81%
Bloomberg US Aggregate Bond Index	-0.45%	-13.01%	-13.01%	-0.02%	0.72%
Lipper Core Bond Fund Average	-0.43%	-13.51%	-13.51%	-0.04%
Lipper Percentile Rank			74%	53%
	Core Bond Fund-I Shares
One Month ( As of 12/31/22)	-0.51%
YTD ( As of 12/31/22)	-14.31%
1 Year ( As of 12/31/22)	-14.31%
5 Years ( As of 12/31/22)	-0.09%
Since Inception ( As of 12/31/22)	0.81%
	Bloomberg US Aggregate Bond Index
One Month ( As of 12/31/22)	-0.45%
YTD ( As of 12/31/22)	-13.01%
1 Year ( As of 12/31/22)	-13.01%
5 Years ( As of 12/31/22)	-0.02%
Since Inception ( As of 12/31/22)	0.72%
	Lipper Core Bond Fund Average
One Month ( As of 12/31/22)	-0.43%
YTD ( As of 12/31/22)	-13.51%
1 Year ( As of 12/31/22)	-13.51%
5 Years ( As of 12/31/22)	-0.04%
Since Inception ( As of 12/31/22)
	Lipper Percentile Rank
One Month ( As of 12/31/22)
YTD ( As of 12/31/22)
1 Year ( As of 12/31/22)	74%
5 Years ( As of 12/31/22)	53%
Since Inception ( As of 12/31/22)

*Lipper Percentile Rank is based on total return performance. Lipper Category: Core Bond Funds. Number of Funds in Category: 509 (1 Year) and 445 (5 Year). Gross Expense Ratio 0.71%, Net Expense Ratio 0.50%.

LIMITED DURATION FUND

	One Month ( As of 12/31/22)	YTD ( As of 12/31/22)	1 Year ( As of 12/31/22)	5 Years ( As of 12/31/22)	Since Inception ( As of 12/31/22)
Limited Duration Bond Fund-I Shares	0.15%	-3.81%	-3.81%	0.87%	0.90%
Bloomberg Government/Credit 1-3 Year Index	0.19%	-3.69%	-3.69%	0.92%	0.90%
Lipper Short Investment Grade Debt Fund Average	0.32%	-4.31%	-4.31%	0.94%
Lipper Percentile Rank			29%	56%
	Limited Duration Bond Fund-I Shares
One Month ( As of 12/31/22)	0.15%
YTD ( As of 12/31/22)	-3.81%
1 Year ( As of 12/31/22)	-3.81%
5 Years ( As of 12/31/22)	0.87%
Since Inception ( As of 12/31/22)	0.90%
	Bloomberg Government/Credit 1-3 Year Index
One Month ( As of 12/31/22)	0.19%
YTD ( As of 12/31/22)	-3.69%
1 Year ( As of 12/31/22)	-3.69%
5 Years ( As of 12/31/22)	0.92%
Since Inception ( As of 12/31/22)	0.90%
	Lipper Short Investment Grade Debt Fund Average
One Month ( As of 12/31/22)	0.32%
YTD ( As of 12/31/22)	-4.31%
1 Year ( As of 12/31/22)	-4.31%
5 Years ( As of 12/31/22)	0.94%
Since Inception ( As of 12/31/22)
	Lipper Percentile Rank
One Month ( As of 12/31/22)
YTD ( As of 12/31/22)
1 Year ( As of 12/31/22)	29%
5 Years ( As of 12/31/22)	56%
Since Inception ( As of 12/31/22)

Lipper Percentile Rank is based on total return performance. Lipper Category: Short Investment Grade Debt Funds. Number of Funds in Category: 366 (1 Year) and 304 (5 Year). Gross Expense Ratio 0.71%, Net Expense Ratio 0.50%

LARGE CAP GROWTH FUND

	One Month ( As of 12/31/22)	YTD ( As of 12/31/22)	1 Year ( As of 12/31/22)	5 Years ( As of 12/31/22)	Since Inception ( As of 12/31/22)
Large Cap Growth Fund-I Shares	-7.14%	-31.49%	-31.49%	6.33%	7.38%
Russell 1000 Growth Index	-7.66%	-29.14%	-29.14%	10.96%	11.56%
Lipper Multi-Cap Growth Fund Average	-7.09%	-32.92%	-32.92%	7.62%
Lipper Percentile Rank			52%	87%
	Large Cap Growth Fund-I Shares
One Month ( As of 12/31/22)	-7.14%
YTD ( As of 12/31/22)	-31.49%
1 Year ( As of 12/31/22)	-31.49%
5 Years ( As of 12/31/22)	6.33%
Since Inception ( As of 12/31/22)	7.38%
	Russell 1000 Growth Index
One Month ( As of 12/31/22)	-7.66%
YTD ( As of 12/31/22)	-29.14%
1 Year ( As of 12/31/22)	-29.14%
5 Years ( As of 12/31/22)	10.96%
Since Inception ( As of 12/31/22)	11.56%
	Lipper Multi-Cap Growth Fund Average
One Month ( As of 12/31/22)	-7.09%
YTD ( As of 12/31/22)	-32.92%
1 Year ( As of 12/31/22)	-32.92%
5 Years ( As of 12/31/22)	7.62%
Since Inception ( As of 12/31/22)
	Lipper Percentile Rank
One Month ( As of 12/31/22)
YTD ( As of 12/31/22)
1 Year ( As of 12/31/22)	52%
5 Years ( As of 12/31/22)	87%
Since Inception ( As of 12/31/22)

*Lipper Percentile Rank is based on total return performance. Lipper Category: Multi-Cap Growth Funds. Number of Funds in Category: 666 (1 Year) and 597 (5 Year). Gross Expense Ratio 0.90%, Net Expense Ratio 0.90%.

LARGE CAP VALUE FUND

	One Month ( As of 12/31/22)	YTD ( As of 12/31/22)	1 Year ( As of 12/31/22)	5 Years ( As of 12/31/22)	Since Inception ( As of 12/31/22)
Large Cap Value Fund-I Shares	-4.05%	-8.06%	-8.06%	6.73%	7.53%
Russell 1000 Value Index	-4.03%	-7.54%	-7.54%	6.67%	7.47%
Lipper Multi-Cap Value Fund Average	-4.23%	-6.79%	-6.79%	6.69%	-
Lipper Percentile Rank			69%	53%
	Large Cap Value Fund-I Shares
One Month ( As of 12/31/22)	-4.05%
YTD ( As of 12/31/22)	-8.06%
1 Year ( As of 12/31/22)	-8.06%
5 Years ( As of 12/31/22)	6.73%
Since Inception ( As of 12/31/22)	7.53%
	Russell 1000 Value Index
One Month ( As of 12/31/22)	-4.03%
YTD ( As of 12/31/22)	-7.54%
1 Year ( As of 12/31/22)	-7.54%
5 Years ( As of 12/31/22)	6.67%
Since Inception ( As of 12/31/22)	7.47%
	Lipper Multi-Cap Value Fund Average
One Month ( As of 12/31/22)	-4.23%
YTD ( As of 12/31/22)	-6.79%
1 Year ( As of 12/31/22)	-6.79%
5 Years ( As of 12/31/22)	6.69%
Since Inception ( As of 12/31/22)	-
	Lipper Percentile Rank
One Month ( As of 12/31/22)
YTD ( As of 12/31/22)
1 Year ( As of 12/31/22)	69%
5 Years ( As of 12/31/22)	53%
Since Inception ( As of 12/31/22)

*Lipper Percentile Rank is based on total return performance. Lipper Category: Multi-Cap Value Funds. Number of Funds in Category: 658 (1 Year) and 578 (5 Year). Gross Expense Ratio 0.90%, Net Expense Ratio 0.90%.

SMALL CAP FUND

	One Month ( As of 12/31/22)	YTD ( As of 12/31/22)	1 Year ( As of 12/31/22)	5 Years ( As of 12/31/22)	Since Inception ( As of 12/31/22)
Small Cap Equity Fund-I Shares	-5.28%	-20.47%	-20.47%	3.24%	5.11%
Russell 2000 Index	-6.49%	-20.44%	-20.44%	4.13%	6.06%
Lipper Small Cap Fund Average	-5.49%	-14.40%	-14.40%	4.71%
Lipper Percentile Rank			21%	87%
	Small Cap Equity Fund-I Shares
One Month ( As of 12/31/22)	-5.28%
YTD ( As of 12/31/22)	-20.47%
1 Year ( As of 12/31/22)	-20.47%
5 Years ( As of 12/31/22)	3.24%
Since Inception ( As of 12/31/22)	5.11%
	Russell 2000 Index
One Month ( As of 12/31/22)	-6.49%
YTD ( As of 12/31/22)	-20.44%
1 Year ( As of 12/31/22)	-20.44%
5 Years ( As of 12/31/22)	4.13%
Since Inception ( As of 12/31/22)	6.06%
	Lipper Small Cap Fund Average
One Month ( As of 12/31/22)	-5.49%
YTD ( As of 12/31/22)	-14.40%
1 Year ( As of 12/31/22)	-14.40%
5 Years ( As of 12/31/22)	4.71%
Since Inception ( As of 12/31/22)
	Lipper Percentile Rank
One Month ( As of 12/31/22)
YTD ( As of 12/31/22)
1 Year ( As of 12/31/22)	21%
5 Years ( As of 12/31/22)	87%
Since Inception ( As of 12/31/22)

*Lipper Percentile Rank is based on total return performance. Lipper Category: Small-Cap Core Funds. Number of Funds in Category: 717 (1 Year) and 637 (5 Year). Gross Expense Ratio 1.05%, Net Expense Ratio 1.05%.

INTERNATIONAL EQUITY FUND

	One Month ( As of 12/31/22)	YTD ( As of 12/31/22)	1 Year ( As of 12/31/22)	5 Years ( As of 12/31/22)	Since Inception ( As of 12/31/22)
International Equity-I Shares	-2.92%	-19.06%	-19.06%	1.16%	3.86%
FTSE All World Ex US Index	-0.53%	-15.22%	-15.22%	1.58%	3.54%
Lipper International Multi-Cap Fund Average	-1.63%	-15.11%	-15.11%	0.88%	-
Lipper Percentile Rank			90%	42%
	International Equity-I Shares
One Month ( As of 12/31/22)	-2.92%
YTD ( As of 12/31/22)	-19.06%
1 Year ( As of 12/31/22)	-19.06%
5 Years ( As of 12/31/22)	1.16%
Since Inception ( As of 12/31/22)	3.86%
	FTSE All World Ex US Index
One Month ( As of 12/31/22)	-0.53%
YTD ( As of 12/31/22)	-15.22%
1 Year ( As of 12/31/22)	-15.22%
5 Years ( As of 12/31/22)	1.58%
Since Inception ( As of 12/31/22)	3.54%
	Lipper International Multi-Cap Fund Average
One Month ( As of 12/31/22)	-1.63%
YTD ( As of 12/31/22)	-15.11%
1 Year ( As of 12/31/22)	-15.11%
5 Years ( As of 12/31/22)	0.88%
Since Inception ( As of 12/31/22)	-
	Lipper Percentile Rank
One Month ( As of 12/31/22)
YTD ( As of 12/31/22)
1 Year ( As of 12/31/22)	90%
5 Years ( As of 12/31/22)	42%
Since Inception ( As of 12/31/22)

* Lipper Percentile Rank is based on total return performance. Lipper Category: International Multi-Cap Core. Number of Funds in Category: 334 (1 Year) and 251 (5 Year). Gross Expense Ratio 1.21%, Net Expense Ratio 1.10%.

REAL ESTATE FUND

	One Month ( As of 12/31/22)	YTD ( As of 12/31/22)	1 Year ( As of 12/31/22)	Since Inception ( As of 12/31/22)
Real Estate-I Shares	-4.96%	-22.78%	-22.78%	1.04%	2.48%
FTSE Nareit Equity REITs Index	-5.14%	-24.37%	-24.37%	-0.11%	-0.34
Lipper Real Estate Average	-4.86%	-25.83%	-25.83%	-0.55	-
Lipper Percentile Rank		10%	18%
	Real Estate-I Shares
One Month ( As of 12/31/22)	-4.96%
YTD ( As of 12/31/22)	-22.78%
1 Year ( As of 12/31/22)	-22.78%
Since Inception ( As of 12/31/22)	1.04%
	2.48%
	FTSE Nareit Equity REITs Index
One Month ( As of 12/31/22)	-5.14%
YTD ( As of 12/31/22)	-24.37%
1 Year ( As of 12/31/22)	-24.37%
Since Inception ( As of 12/31/22)	-0.11%
	-0.34
	Lipper Real Estate Average
One Month ( As of 12/31/22)	-4.86%
YTD ( As of 12/31/22)	-25.83%
1 Year ( As of 12/31/22)	-25.83%
Since Inception ( As of 12/31/22)	-0.55
	-
	Lipper Percentile Rank
One Month ( As of 12/31/22)
YTD ( As of 12/31/22)	10%
1 Year ( As of 12/31/22)	18%
Since Inception ( As of 12/31/22)

* Lipper Percentile Rank is based on total return performance. Lipper Category: Real Estate Number of Funds in Category: 247 (1 Year) and 231 (3 Year) Gross Expense Ratio 1.16%, Net Expense Ratio 1.00%.

LONG-SHORT EQUITY FUND

	One Month ( As of 12/31/22)	YTD ( As of 12/31/22)	1 Year ( As of 12/31/22)	Since Inception ( As of 12/31/22)
Long-Short Equity – I Shares	-1.07%	10.41%	10.41%	4.66%	4.60
HFRX Equity Market Neutral Developed Index	1.19%	0.08%	0.08%	-0.98%	-1.18%
Lipper Alternative Long/Short Average	-1.94%	-5.36%	-5.36%	4.24	-
Lipper Percentile rank			9%	41%
	Long-Short Equity – I Shares
One Month ( As of 12/31/22)	-1.07%
YTD ( As of 12/31/22)	10.41%
1 Year ( As of 12/31/22)	10.41%
Since Inception ( As of 12/31/22)	4.66%
	4.60
	HFRX Equity Market Neutral Developed Index
One Month ( As of 12/31/22)	1.19%
YTD ( As of 12/31/22)	0.08%
1 Year ( As of 12/31/22)	0.08%
Since Inception ( As of 12/31/22)	-0.98%
	-1.18%
	Lipper Alternative Long/Short Average
One Month ( As of 12/31/22)	-1.94%
YTD ( As of 12/31/22)	-5.36%
1 Year ( As of 12/31/22)	-5.36%
Since Inception ( As of 12/31/22)	4.24
	-
	Lipper Percentile rank
One Month ( As of 12/31/22)
YTD ( As of 12/31/22)
1 Year ( As of 12/31/22)	9%
Since Inception ( As of 12/31/22)	41%

*Lipper Percentile Rank is based on total return performance. Lipper Category: Alternative Long/Short Equity Number of Funds in Category: 229 (1 Year) and 206 (3 Year) Gross Expense Ratio 2.63, Net Expense Ratio 2.28%.

U.S. ALL CAP INDEX FUND

	One Month ( As of 12/31/22)	YTD ( As of 12/31/22)	1 Year ( As of 12/31/22)	Since Inception ( As of 12/31/22)
U.S. All Cap Index – I Shares	-6.33%	-21.05%	-21.05%	6.82%	6.81%
Knights of Columbus U.S. All Cap Index	-6.33%	-20.84%	-20.84%	7.22%	7.22%
Lipper Multi-Cap Core Average	-5.27%	-18.00%	-18.00%	5.88	-
Lipper Percentile rank			77%	41%
	U.S. All Cap Index – I Shares
One Month ( As of 12/31/22)	-6.33%
YTD ( As of 12/31/22)	-21.05%
1 Year ( As of 12/31/22)	-21.05%
Since Inception ( As of 12/31/22)	6.82%
	6.81%
	Knights of Columbus U.S. All Cap Index
One Month ( As of 12/31/22)	-6.33%
YTD ( As of 12/31/22)	-20.84%
1 Year ( As of 12/31/22)	-20.84%
Since Inception ( As of 12/31/22)	7.22%
	7.22%
	Lipper Multi-Cap Core Average
One Month ( As of 12/31/22)	-5.27%
YTD ( As of 12/31/22)	-18.00%
1 Year ( As of 12/31/22)	-18.00%
Since Inception ( As of 12/31/22)	5.88
	-
	Lipper Percentile rank
One Month ( As of 12/31/22)
YTD ( As of 12/31/22)
1 Year ( As of 12/31/22)	77%
Since Inception ( As of 12/31/22)	41%

*Lipper Percentile Rank is based on total return performance. Lipper Category: Multi-Cap Core Number of Funds in Category: 655 (1 Year) and 597 (3 Year) Gross Expense Ratio 0.92%, 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, 2023.

BENCHMARK DEFINITION

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.

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 89 out of 369 funds measured for the one-year ranking period and ranked 159 out of 308 funds measured for the five-year ranking period as of June 30, 2022.

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 331 out of 504 funds measured for the one-year ranking period and ranked 220 out of 438 funds measured for the five-year ranking period as of June 30, 2022.

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 166 out of 465 funds measured for the one-year ranking period ranked and 197 out of 393 funds measured for the five year ranking period as of June 30, 2022.

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 411 out of 631 funds measured for the one-year ranking period and ranked 270 out of 560 funds measured for the five-year ranking period as of June 30, 2022.

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 699 out of 852 funds measured for the one-year ranking period and ranked 551 out of 743 funds measured for the five-year ranking period as of June 30, 2022.

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 295 out of 331 funds measured for the one-year ranking period and ranked 17 out of 256 funds measured for the five-year ranking period as of June 30, 2022.

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 2 out of 247 funds measured for the one-year ranking period as of June 30, 2022.

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 16 out of 242 funds measured for the one-year ranking period as of June 30, 2022.

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 471 out of 669 funds measured for the one-year ranking period as of June 30, 2022.