A CBIS news release said that its market neutral strategy is designed to provide low volatility and low correlations with traditional equity and fixed income products. The fund, which carries a minimum investment of $25,000, will employ a conservative approach, investing in offsetting long and short stock portfolios with the goal of producing a return of 3% to 4% percent above Treasury bill rates, the company said.
The company said that the fund will comply with CBIS’ socially responsible investing policies, which are geared to meet the needs and responsibilities of Catholic institutions. CBIS will ensure that securities restricted by its socially responsible stock screens are not held in either the long or short portfolios, while long positions will support CBIS’ Active Ownership shareholder advocacy efforts, according to the announcement.
“Catholic institutions are increasingly interested in alternative investment products, but have been understandably wary of the lack of transparency, illiquidity, high fees and complex investment strategies associated with many hedge funds,” said CBIS Chief Investment Officer Frank Haines, in the announcement. “We designed the CUIT Market Neutral Fund specifically to address these issues, offering Catholic institutions a socially responsible alternative investment option.”
Analytic Investors and Freeman Associates initially will manage the Fund, the announcement said. A third manager will be added when assets reach $50 million.
More information is at www.cbisonline.com .