Fund Overview
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
Fund Name | Costs of a $10,000
investment | Costs paid as a percentage of a
$10,000 investment |
|---|---|---|
The Catholic SRI Growth Portfolio | $ |
How did the Fund perform last year?
The Catholic SRI Growth Portfolio (the “Portfolio”) managed by Mellon Investments Corporation (“Mellon”) returned 20.69% for the fiscal year compared to 20.75% for the MSCI World Index.
The Portfolio’s underperformance can be attributed primarily to the screening that is required to adhere to Catholic values, which is managed by Mellon.
The Portfolio is diversified across securities to ensure proper portfolio diversification, with the goal of providing competitive long-term returns in as consistent a manner as possible. As a result, it is expected that some styles will be leading at times, while others are lagging and vice versa. The Portfolio expects to participate in this cyclicality of styles by maintaining market exposure comparable to MSCI World Index.
The Portfolio requires that the underlying managers integrate Catholic values in their investment selections, which includes negative screens. Mellon uses third party data to implement the negative screens in the Portfolio.
Buoyed by easing inflation, a resilient economy, enthusiasm about AI and the prospect of lower interest rates, the S&P 500 increased by 24.56% for the Fiscal Year, compared to 19.59% last year. This is higher than the long-term average of 10.56%. The returns for the S&P 500 were very concentrated with the top 10 companies accounting for 69.4% (17.05% of 24.56%) of the total return of the S&P 500. Growth outperformed Value stocks as enthusiasm about the prospects for AI drove mega growth stocks higher. The Russell 1000® Growth Index rose by 33.48% compared to the Russell 1000® Value Index which rose 13.06% during the Fiscal Year.
Fund performance based on $10,000 initial investment
The Catholic SRI Growth Portfolio | ||
|---|---|---|
Jun 24 | 23,598 | |
Jun 23 | 19,552 | |
Jun 22 | 16,283 | |
Jun 21 | 19,425 | |
Jun 20 | 13,776 | |
Jun 19 | 13,412 | |
Jun 18 | 13,128 | |
Jun 17 | 11,802 | |
Jun 16 | 10,000 |
Average Annual Total Returns
1 Year | 5 Years | Since Inception | |
|---|---|---|---|
The Catholic SRI Growth Portfolio | |||
Fund Statistics
Net Assets | $ |
Number of Portfolio Holdings | |
Net Investment Advisory Fees | $ |
Portfolio Turnover Rate |
What did the Fund invest in?
(As of June 30, 2024)
Portfolio Composition
Investments | Percent of Total Investments |
|---|---|
Information Technology | |
Financials | |
Consumer Discretionary | |
Communication Services | |
Industrials | |
Consumer Staples | |
Energy | |
Health Care | |
Materials | |
Utilities | |
Real Estate | |
Investment Company | |
Warrant | |
Right |
Material Fund Changes
Changes In Or Disagreements With Accountants
There were no changes in or disagreements with accountants during the reporting period.
Additional information about the Fund (e.g. Financial Statements, Prospectus and Statement of Additional Information): is available at www.hccapitalsolutions.com or upon request, by calling (800) 242-9596 .
Fund Overview
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
Fund Name | Costs of a $10,000
investment | Costs paid as a percentage of a
$10,000 investment |
|---|---|---|
The Corporate Opportunities Portfolio | $ |
How did the Fund perform last year?
The Corporate Opportunities Portfolio (the “Portfolio”) managed by Parametric Portfolio Associates, LLC (“Parametric”) returned 12.56% for the fiscal year compared to 10.44% for the Bloomberg U.S. High Yield Ba/B 2% Issuer Capped Index.
The Portfolio outperformed the benchmark due to the Parametric futures strategy which seeks to replicate the risk profile of the benchmark. Parametric manages a portfolio of futures contracts that reflects the underlying risks of the asset class. In the fiscal year, high yield bonds dramatically outperformed the instruments chosen to replicate the risk exposure of the benchmark. The City of London strategy outperformed the Portfolio’s benchmark due to a tightening of the discounts among closed end funds.
For most of the year, investors questioned whether the Fed would be able to orchestrate a soft landing – that is to reduce inflation and cool the economy without sending the economy into a recession. This uncertainty created volatility in the bond markets as the yield on the U.S. 10-year Treasury rose from 3.81% to a height of 4.98% in October before ending the Fiscal Year at 4.36%. The Bloomberg U.S. Aggregate Bond Index rose by 2.63% during the year.
By the end of the fiscal year, it appeared as though the miraculous had happened. Inflation started to moderate without any impact on corporate earnings or growth. In June 2024, the Consumer Price Index fell by 0.1% -- the first decrease in inflation since the onset of the pandemic. With price stability in sight, the Fed has indicated that it is "closer" to cutting interest rates. Fed Chairman Jerome Powell recently stated that the U.S. is "no longer an overheated economy" and that “the labor market appears to be fully back in balance. The Fed has guided the market to expect one rate cut but the market is slightly more hopeful and has priced in two rate cuts from 5.25% to 4.75% by the end of 2024.
The Portfolio is designed to provide investors with higher returns over time than traditional fixed income investments primarily through investment in a diversified portfolio of non-investment grade fixed income instruments. The Portfolio may also opportunistically invest in international bonds, convertible bonds, preferred stocks, treasury inflation bonds, loan participations and fixed and floating rate loans.
The Portfolio has flexibility to vary from the index by avoiding credits that the managers feel have adverse price risk.
Fund performance based on $10,000 initial investment
The Corporate Opportunities Portfolio | ||
|---|---|---|
Jun 24 | 16,496 | |
Jun 23 | 14,655 | |
Jun 22 | 13,676 | |
Jun 21 | 14,870 | |
Jun 20 | 13,139 | |
Jun 19 | 12,504 | |
Jun 18 | 11,496 | |
Jun 17 | 11,047 | |
Jun 16 | 9,946 | |
Jun 15 | 10,007 | |
Jun 14 | 10,000 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
The Corporate Opportunities Portfolio | |||
Fund Statistics
Net Assets | $ |
Number of Portfolio Holdings | |
Net Investment Advisory Fees | $ |
Portfolio Turnover Rate |
What did the Fund invest in?
(As of June 30, 2024)
Portfolio Composition
Investments | Percent of Total Investments |
|---|---|
Investment Companies | |
Financial Services | |
Futures | |
Credit Default Swap | - |
Material Fund Changes
Changes In Or Disagreements With Accountants
There were no changes in or disagreements with accountants during the reporting period.
Additional information about the Fund (e.g. Financial Statements, Prospectus and Statement of Additional Information): is available at www.hccapitalsolutions.com or upon request, by calling (800) 242-9596 .
Fund Overview
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
Fund Name | Costs of a $10,000
investment | Costs paid as a percentage of a
$10,000 investment |
|---|---|---|
The Emerging Markets Portfolio | $ |
How did the Fund perform last year?
The MSCI Emerging Markets Index rose by 12.55% in U.S. Dollar terms for the Fiscal Year. After a tough start to the year, Emerging Market equities started to rebound as geopolitical tensions boosted emerging market energy exports such as Brazil and Saudi Arabia and stronger macro fundamentals, coupled with AI-related optimism, lifted technology heavy Emerging Markets in Taiwan and South Korea. In addition, reforms in China helped to mitigate concerns about the country’s growth prospects and real estate sector.
The Emerging Markets Portfolio (the “Portfolio”) managed by Mellon Investments Corporation (“Mellon”), Monashee Investment Management, LLC (“Monashee”), Parametric Portfolio Associates, LLC (“Parametric”), and XY Investments (HK) Limited (“XY Investments”) returned 12.19% for the fiscal year compared to 12.97% for the MSCI EM Index.
For the fiscal year 2024, the Portfolio underperformed the benchmark. The underperformance was primarily due to the quantitative strategy run by XY Investments utilizing equity-based total return swaps. During the first half of the fiscal year, XY Investment’s style benchmark (MSCI China A Onshore Net Total Return Index USD) returned -7.58% compared to 4.88% for the MSCI EM Index.
The Portfolio provides broad access to international emerging markets equity. The Portfolio is managed with multiple managers to provide diversification of manager style as well as diversification of firm specific risks. Mellon’s strategy provides passive exposure to the MSCI EM Index. The Portfolio diversifies amongst a large number of names and across geographies and sectors. Parametric replicates benchmark index (MSCI Emerging Markets Index) using futures. This allows the Portfolio to have cash on hand to meet redemptions and invest opportunistically.
XY was terminated at the end of the first half of the reporting period. Following an extensive review by the investment strategy group, the decision to terminate the manager was made due to lower conviction in the manager’s strategy to add value over the emerging markets equity opportunity set.
The Trust hired Monashee during the fiscal year. The decision to hire Monashee was made following an extensive review conducted by the investment strategy group. Monashee was chosen following the completion of qualitative assessments and quantitative analysis. Monashee attempts to deliver excess returns by harvesting the equity volatility risk premium which arises from the persistent tendency of imputed volatility to exceed actual and forward-looking realized volatility.
Fund performance based on $10,000 initial investment
The Emerging Markets Portfolio | ||
|---|---|---|
Jun 24 | 11,954 | |
Jun 23 | 10,655 | |
Jun 22 | 10,485 | |
Jun 21 | 13,772 | |
Jun 20 | 10,007 | |
Jun 19 | 10,364 | |
Jun 18 | 9,955 | |
Jun 17 | 9,823 | |
Jun 16 | 8,084 | |
Jun 15 | 9,152 | |
Jun 14 | 10,000 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
The Emerging Markets Portfolio | |||
Fund Statistics
Net Assets | $ |
Number of Portfolio Holdings | |
Net Investment Advisory Fees | $ |
Portfolio Turnover Rate |
What did the Fund invest in?
(As of June 30, 2024)
Portfolio Composition
Investments | Percent of Total Investments |
|---|---|
Information Technology | |
Financials | |
Investment Companies | |
Consumer Discretionary | |
Communication Services | |
Materials | |
Energy | |
Industrials | |
Consumer Staples | |
Health Care | |
Utilities | |
Real Estate | |
Right | |
Purchased Options | |
Futures | |
Written Options | - |
Material Fund Changes
Changes In Or Disagreements With Accountants
There were no changes in or disagreements with accountants during the reporting period.
Additional information about the Fund (e.g. Financial Statements, Prospectus and Statement of Additional Information): is available at www.hccapitalsolutions.com or upon request, by calling (800) 242-9596 .
Fund Overview
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
Fund Name | Costs of a $10,000
investment | Costs paid as a percentage of a
$10,000 investment |
|---|---|---|
The ESG Growth Portfolio | $ |
How did the Fund perform last year?
The ESG Growth Portfolio (the “Portfolio”) managed by Mellon Investments Corporation (“Mellon”), Parametric Portfolio Associates, LLC and RBC Global Asset Management (U.K.) Limited (“RBC GAM”) returned 19.41% for the fiscal year compared to 20.75% for the MSCI World Index.
The Portfolio’s underperformance can be attributed to the Global ESG screening strategy, which was run by Mellon and underperformed.
RBC GAM was terminated during the reporting period. Following an extensive review by the investment strategy group, the decision to terminate the manager was made due to lower conviction in the manager’s strategy to add value over the U.S. equity opportunity set.
The Portfolio requires that the underlying managers integrate ESG criteria in their investment selection. Mellon uses third party ESG data to better understand the environmental, social and governance risks and opportunities when making investment decisions.
Buoyed by easing inflation, a resilient economy, enthusiasm about AI and the prospect of lower interest rates, the S&P 500 increased by 24.56% for the Fiscal Year, compared to 19.59% last year. This is higher than the long-term average of 10.56%. The returns for the S&P 500 were very concentrated with the top 10 companies accounting for 69.4% (17.05% of 24.56%) of the total return of the S&P 500. Growth outperformed Value stocks as enthusiasm about the prospects for AI drove mega growth stocks higher. The Russell 1000® Growth Index rose by 33.48% compared to the Russell 1000® Value Index which rose 13.06% during the Fiscal Year.
Fund performance based on $10,000 initial investment
The ESG Growth Portfolio | ||
|---|---|---|
Jun 24 | 22,572 | |
Jun 23 | 18,903 | |
Jun 22 | 16,308 | |
Jun 21 | 19,141 | |
Jun 20 | 13,768 | |
Jun 19 | 13,176 | |
Jun 18 | 12,910 | |
Jun 17 | 11,719 | |
Jun 16 | 10,000 |
Average Annual Total Returns
1 Year | 5 Years | Since Inception | |
|---|---|---|---|
The ESG Growth Portfolio | |||
Fund Statistics
Net Assets | $ |
Number of Portfolio Holdings | |
Net Investment Advisory Fees | $ |
Portfolio Turnover Rate |
What did the Fund invest in?
(As of June 30, 2024)
Portfolio Composition
Investments | Percent of Total Investments |
|---|---|
Information Technology | |
Financials | |
Health Care | |
Industrials | |
Consumer Discretionary | |
Communication Services | |
Consumer Staples | |
Energy | |
Materials | |
Utilities | |
Real Estate | |
Investment Company | |
Right | |
Warrant | |
Futures | - |
Material Fund Changes
Changes In Or Disagreements With Accountants
There were no changes in or disagreements with accountants during the reporting period.
Additional information about the Fund (e.g. Financial Statements, Prospectus and Statement of Additional Information): is available at www.hccapitalsolutions.com or upon request, by calling (800) 242-9596 .
Fund Overview
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
Fund Name | Costs of a $10,000
investment | Costs paid as a percentage of a
$10,000 investment |
|---|---|---|
The Institutional U.S. Equity Portfolio | $ |
How did the Fund perform last year?
The Institutional U.S. Equity Portfolio (the “Portfolio”) managed by Echo Street Capital Management LLC (“Echo Street”), Jennison Associates, LLC “Jennison”), Mellon Investments Corporation (“Mellon”), Monashee Investment Management, LLC (“Monashee”), Parametric Portfolio Associates, LLC, RhumbLine Advisers (“RhumbLine”), and Wellington Management Company, LLP (“Wellington”) returned 22.40% for the fiscal year compared to 24.65% for the MSCI USA Index.
The Portfolio underperformed the benchmark primarily due to the performance of Mellon, RhumbLine, and Wellington. Mellon underperformed due to its modest bias towards low-volatility stocks. During the fiscal year, RhumbLine’s performance of 23.87% was slightly behind its Russell 1000 Index benchmark which returned 23.88%. The Russell 1000 Index underperformed the MSCI USA Index due to its exposure to a more diversified set of U.S. securities that resulted in a bias towards securities with smaller market capitalization than the benchmark. Wellington implements a public real estate strategy which, while in line with the real estate market, underperformed broad equity markets as higher rates caused REITs to lag. Jennison’s growth bias resulted in relative outperformance as growth stocks outperformed the broad market and dampened the portfolio’s underperformance.
Echo Street voluntarily decided to stop managing external capital during the reporting period. The manager lagged prior to its closure primarily due to security selection.
Jennison was terminated during the reporting period. Following an extensive review by the investment strategy group, the decision to terminate the manager was made due to lower conviction in the manager’s strategy to add value over the U.S. equity opportunity set.
The trust hired Monashee during the fiscal year. The decision to hire Monashee was made following an extensive review conducted by the investment strategy group. Monashee was chosen following the completion of qualitative assessments and quantitative analysis. Monashee attempts to deliver excess returns by harvesting the equity volatility risk premium which arises from the persistent tendency of imputed volatility to exceed actual and forward-looking realized volatility.
The Portfolio is diversified across multiple managers and strategies to ensure proper portfolio diversification, with the goal of providing superior long-term returns in as stable and consistent a manner as possible. As a result, it is expected that some managers and styles will be leading at times, while others are lagging and vice versa. The Portfolio expects to attribute some of its performance to this cyclicality of styles.
Buoyed by easing inflation, a resilient economy, enthusiasm about AI and the prospect of lower interest rates, the S&P 500 increased by 24.56% for the Fiscal Year, compared to 19.59% last year. This is higher than the long-term average of 10.56%. The returns for the S&P 500 were very concentrated with the top 10 companies accounting for 69.4% (17.05% of 24.56%) of the total return of the S&P 500. Growth outperformed Value stocks as enthusiasm about the prospects for AI drove mega growth stocks higher. The Russell 1000® Growth Index rose by 33.48% compared to the Russell 1000® Value Index which rose 13.06% during the Fiscal Year.
Fund performance based on $10,000 initial investment
The Institutional U.S. Equity Portfolio | ||
|---|---|---|
Jun 24 | 36,380 | |
Jun 23 | 29,723 | |
Jun 22 | 25,273 | |
Jun 21 | 29,839 | |
Jun 20 | 21,029 | |
Jun 19 | 18,658 | |
Jun 18 | 16,739 | |
Jun 17 | 14,070 | |
Jun 16 | 11,821 | |
Jun 15 | 11,114 | |
Jun 14 | 10,000 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
The Institutional U.S. Equity Portfolio | |||
Fund Statistics
Net Assets | $ |
Number of Portfolio Holdings | |
Net Investment Advisory Fees | $ |
Portfolio Turnover Rate |
What did the Fund invest in?
(As of June 30, 2024)
Portfolio Composition
Investments | Percent of Total Investments |
|---|---|
Investment Companies | |
Information Technology | |
Financials | |
Industrials | |
Health Care | |
Consumer Discretionary | |
Communication Services | |
Consumer Staples | |
Real Estate | |
Utilities | |
Energy | |
Materials | |
Contingent Right | |
Purchased Options | |
Futures | |
Written Options | - |
Material Fund Changes
Changes In Or Disagreements With Accountants
There were no changes in or disagreements with accountants during the reporting period.
Additional information about the Fund (e.g. Financial Statements, Prospectus and Statement of Additional Information): is available at www.hccapitalsolutions.com or upon request, by calling (800) 242-9596 .
Fund Overview
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
Fund Name | Costs of a $10,000
investment | Costs paid as a percentage of a
$10,000 investment |
|---|---|---|
The Intermediate Term Municipal Bond Portfolio | $ |
How did the Fund perform last year?
The Intermediate Term Municipal Bond Portfolio managed by Insight North America LLC (“Insight”) returned 3.01% for the fiscal year compared to 2.19% for the Bloomberg 3-10 Year Blend (2-12) Total Return Index Unhedged.
The Insight strategy outperformed the benchmark during the twelve-month reporting period. An overweight to revenue bonds compared to general obligation bonds, and an underweight to higher rated issues contributed to the overperformance during the fiscal year.
For most of the year, investors questioned whether the Fed would be able to orchestrate a soft landing – that is to reduce inflation and cool the economy without sending the economy into a recession. This uncertainty created volatility in the bond markets as the yield on the U.S. 10-year Treasury rose from 3.81% to a height of 4.98% in October before ending the Fiscal Year at 4.36%. The Bloomberg U.S. Aggregate Bond Index rose by 2.63% during the year.
By the end of the fiscal year, it appeared as though the miraculous had happened. Inflation started to moderate without any impact on corporate earnings or growth. In June 2024, the Consumer Price Index fell by 0.1% -- the first decrease in inflation since the onset of the pandemic. With price stability in sight, the Fed has indicated that it is "closer" to cutting interest rates. Fed Chairman Jerome Powell recently stated that the U.S. is "no longer an overheated economy" and that “the labor market appears to be fully back in balance. The Fed has guided the market to expect one rate cut but the market is slightly more hopeful and has priced in two rate cuts from 5.25% to 4.75% by the end of 2024.
Fund performance based on $10,000 initial investment
The Intermediate Term Municipal Bond Portfolio | |||
|---|---|---|---|
Jun 24 | 11,736 | ||
Jun 23 | 11,394 | ||
Jun 22 | 11,149 | ||
Jun 21 | 11,859 | ||
Jun 20 | 11,546 | ||
Jun 19 | 11,187 | ||
Jun 18 | 10,609 | ||
Jun 17 | 10,595 | ||
Jun 16 | 10,565 | ||
Jun 15 | 10,154 | ||
Jun 14 | 10,000 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
The Intermediate Term Municipal Bond Portfolio | |||
Fund Statistics
Net Assets | $ |
Number of Portfolio Holdings | |
Net Investment Advisory Fees | $ |
Portfolio Turnover Rate |
What did the Fund invest in?
(As of June 30, 2024)
Portfolio Composition
Investments | Percent of Total Investments |
|---|---|
Revenue Bonds | |
General Obligation | |
Investment Companies | |
Certificates of Participation | |
Tax Allocation |
Material Fund Changes
Changes In Or Disagreements With Accountants
There were no changes in or disagreements with accountants during the reporting period.
Additional information about the Fund (e.g. Financial Statements, Prospectus and Statement of Additional Information): is available at www.hccapitalsolutions.com or upon request, by calling (800) 242-9596 .
Fund Overview
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
Fund Name | Costs of a $10,000
investment | Costs paid as a percentage of a
$10,000 investment |
|---|---|---|
The International Equity Portfolio | $ |
How did the Fund perform last year?
The MSCI EAFE Index rose by 11.54% in U.S. Dollar terms for the Fiscal Year. While it was a strong year for the region, the index underperformed its U.S. counterparts because it has less exposure to the AI euphoria that fueled the global markets. From a sector perspective, information technology, financials and industrials were the strongest performing segments of the market for the year. From a regional standpoint, the U.K, and Japan slightly outperformed the index and rose 12.49% and 13.15%, respectively for the year. Japan's returns were led by the performance of stocks trading below book value as market leaders pushed for company executives to improve profit margins, increase dividends and corporate governance.
The International Equity Portfolio (the “Portfolio”) managed by Parametric Portfolio Associates, LLC (“Parametric”) and Monashee Investment Management, LLC (“Monashee”) returned 11.69% for the fiscal year compared to 11.54% for the MSCI EAFE Index.
The Portfolio overperformed the benchmark.The tax-managed strategy run by Parametric focuses on minimizing taxable gains subject to a tracking error constraint. The tracking error generated by tax minimization added to before-tax performance during the period.
Concerns about inflation and future growth plagued the markets for most of the year. However, in the second half of the year, the ECB, Bank of Canada and the Swiss National Bank started to cut rates as data showed steady progress in the battle against inflation.
The trust hired Monashee during the fiscal year. The decision to hire Monashee was made following an extensive review conducted by the investment strategy group. Monashee was chosen following the completion of qualitative assessments and quantitative analysis. Monashee attempts to deliver excess returns by harvesting the equity volatility risk premium which arises from the persistent tendency of imputed volatility to exceed actual and forward-looking realized volatility.
The Portfolios are diversified across multiple managers and strategies to ensure proper portfolio diversification, with the goal of providing superior long-term returns in as stable and consistent a manner as possible. As a result, it is expected that some managers and styles will be leading at times, while others are lagging and vice versa. The Portfolio expects to attribute some of its performance to this cyclicality of styles.
Fund performance based on $10,000 initial investment
The International Equity Portfolio | ||
|---|---|---|
Jun 24 | 15,464 | |
Jun 23 | 13,846 | |
Jun 22 | 11,635 | |
Jun 21 | 13,826 | |
Jun 20 | 10,462 | |
Jun 19 | 10,878 | |
Jun 18 | 10,851 | |
Jun 17 | 10,276 | |
Jun 16 | 8,581 | |
Jun 15 | 9,550 | |
Jun 14 | 10,000 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
The International Equity Portfolio | |||
Fund Statistics
Net Assets | $ |
Number of Portfolio Holdings | |
Net Investment Advisory Fees | $ |
Portfolio Turnover Rate |
What did the Fund invest in?
(As of June 30, 2024)
Portfolio Composition
Investments | Percent of Total Investments |
|---|---|
Financials | |
Industrials | |
Health Care | |
Investment Companies | |
Consumer Discretionary | |
Information Technology | |
Consumer Staples | |
Materials | |
Energy | |
Communication Services | |
Utilities | |
Real Estate | |
Warrant | |
Purchased Options | |
Futures | |
Written Options | - |
Material Fund Changes
Changes In Or Disagreements With Accountants
There were no changes in or disagreements with accountants during the reporting period.
Additional information about the Fund (e.g. Financial Statements, Prospectus and Statement of Additional Information): is available at www.hccapitalsolutions.com or upon request, by calling (800) 242-9596 .
Fund Overview
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
Fund Name | Costs of a $10,000
investment | Costs paid as a percentage of a
$10,000 investment |
|---|---|---|
The Short-Term Municipal Bond Portfolio | $ |
How did the Fund perform last year?
The Short-Term Municipal Bond Portfolio (the “Portfolio”) managed by Breckinridge Capital Advisors, Inc. returned 2.24% for the fiscal year compared to 3.00% for the ICE BofA Merrill Lynch 1-3 Year Municipal Index and 2.98% for the Bloomberg 1-3 Year Municipal Bond Index.
The Portfolio underperformed its benchmark due to an intentional overweight to higher quality bonds than the benchmark.
For most of the year, investors questioned whether the Fed would be able to orchestrate a soft landing – that is to reduce inflation and cool the economy without sending the economy into a recession. This uncertainty created volatility in the bond markets as the yield on the U.S. 10-year Treasury rose from 3.81% to a height of 4.98% in October before ending the Fiscal Year at 4.36%. The Bloomberg U.S. Aggregate Bond Index rose by 2.63% during the year.
By the end of the fiscal year, it appeared as though the miraculous had happened. Inflation started to moderate without any impact on corporate earnings or growth. In June 2024, the Consumer Price Index fell by 0.1% -- the first decrease in inflation since the onset of the pandemic. With price stability in sight, the Fed has indicated that it is "closer" to cutting interest rates. Fed Chairman Jerome Powell recently stated that the U.S. is "no longer an overheated economy" and that “the labor market appears to be fully back in balance. The Fed has guided the market to expect one rate cut but the market is slightly more hopeful and has priced in two rate cuts from 5.25% to 4.75% by the end of 2024.
Fund performance based on $10,000 initial investment
The Short-Term Municipal Bond Portfolio | |||
|---|---|---|---|
Jun 24 | 10,841 | ||
Jun 23 | 10,604 | ||
Jun 22 | 10,479 | ||
Jun 21 | 10,833 | ||
Jun 20 | 10,778 | ||
Jun 19 | 10,496 | ||
Jun 18 | 10,203 | ||
Jun 17 | 10,168 | ||
Jun 16 | 10,156 | ||
Jun 15 | 10,019 | ||
Jun 14 | 10,000 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
The Short-Term Municipal Bond Portfolio | |||
Fund Statistics
Net Assets | $ |
Number of Portfolio Holdings | |
Net Investment Advisory Fees | $ |
Portfolio Turnover Rate |
What did the Fund invest in?
(As of June 30, 2024)
Portfolio Composition
Investments | Percent of Total Investments |
|---|---|
General Obligation | |
Revenue Bonds | |
Investment Company |
Material Fund Changes
Changes In Or Disagreements With Accountants
There were no changes in or disagreements with accountants during the reporting period.
Additional information about the Fund (e.g. Financial Statements, Prospectus and Statement of Additional Information): is available at www.hccapitalsolutions.com or upon request, by calling (800) 242-9596 .
Fund Overview
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
Fund Name | Costs of a $10,000
investment | Costs paid as a percentage of a
$10,000 investment |
|---|---|---|
The U.S. Corporate Fixed Income Securities Portfolio | $ |
How did the Fund perform last year?
The U.S. Corporate Fixed Income Securities Portfolio (the “Portfolio”) managed by Agincourt Capital Management, LLC (“Agincourt”) and Parametric Portfolio Associates, LLC returned 4.70% for the fiscal year compared to 4.63% for the Bloomberg U.S. Corporate Bond Index. Agincourt modestly outperformed the benchmark by 7 basis points while maintaining duration, weighted average yield-to-maturity, and average credit quality in line with the benchmark. The Adviser also directed the investment of a portion of the into a shorter duration strategy managed by Parametric which was beneficial as rates rose and contributed to the outperformance.
For most of the year, investors questioned whether the Fed would be able to orchestrate a soft landing – that is to reduce inflation and cool the economy without sending the economy into a recession. This uncertainty created volatility in the bond markets as the yield on the U.S. 10-year Treasury rose from 3.81% to a height of 4.98% in October before ending the Fiscal Year at 4.36%. The Bloomberg U.S. Aggregate Bond Index rose by 2.63% during the year.
By the end of the fiscal year, it appeared as though the miraculous had happened. Inflation started to moderate without any impact on corporate earnings or growth. In June 2024, the Consumer Price Index fell by 0.1% -- the first decrease in inflation since the onset of the pandemic. With price stability in sight, the Fed has indicated that it is "closer" to cutting interest rates. Fed Chairman Jerome Powell recently stated that the U.S. is "no longer an overheated economy" and that “the labor market appears to be fully back in balance. The Fed has guided the market to expect one rate cut but the market is slightly more hopeful and has priced in two rate cuts from 5.25% to 4.75% by the end of 2024.
Fund performance based on $10,000 initial investment
The U.S. Corporate Fixed Income Securities Portfolio | ||
|---|---|---|
Jun 24 | 12,857 | |
Jun 23 | 12,281 | |
Jun 22 | 12,017 | |
Jun 21 | 13,674 | |
Jun 20 | 13,248 | |
Jun 19 | 12,033 | |
Jun 18 | 10,834 | |
Jun 17 | 10,966 | |
Jun 16 | 10,791 | |
Jun 15 | 9,999 | |
Jun 14 | 10,000 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
The U.S. Corporate Fixed Income Securities Portfolio | |||
Fund Statistics
Net Assets | $ |
Number of Portfolio Holdings | |
Net Investment Advisory Fees | $ |
Portfolio Turnover Rate |
What did the Fund invest in?
(As of June 30, 2024)
Portfolio Composition
Investments | Percent of Total Investments |
|---|---|
Financials | |
Investment Companies | |
Communication Services | |
Utilities | |
Health Care | |
Energy | |
Information Technology | |
Consumer Discretionary | |
Materials | |
Industrials | |
Real Estate | |
Consumer Staples | |
Futures |
Material Fund Changes
Changes In Or Disagreements With Accountants
There were no changes in or disagreements with accountants during the reporting period.
Additional information about the Fund (e.g. Financial Statements, Prospectus and Statement of Additional Information): is available at www.hccapitalsolutions.com or upon request, by calling (800) 242-9596 .
Fund Overview
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
Fund Name | Costs of a $10,000
investment | Costs paid as a percentage of a
$10,000 investment |
|---|---|---|
The U.S. Equity Portfolio | $ |
How did the Fund perform last year?
The U.S. Equity Portfolio (the “Portfolio”) managed by Jennison Associates, LLC (“Jennison”) and Parametric Portfolio Associates, LLC (“Parametric”) returned 26.35% for the fiscal year compared to 22.70% for the S&P 500® and 24.65% for the average manager in the MSCI USA Index.
During the second half of the fiscal year, the The Value Equity Portfolio and The Small Capitalization-Mid Capitalization Equity Portfolio were consolidated into the The Growth Equity Portfolio (since renamed The U.S. Equity Portfolio). The consolidation was performed to improve the investment strategy team’s ability to efficiently manage the portfolio.
The Portfolio outperformed its benchmark over the period. Jennison’s growth bias resulted in relative outperformance as growth stocks outperformed the broad market. Positive security selection was also additive to the manager’s performance.
Jennison was terminated during the reporting period. Following an extensive review by the investment strategy group, the decision to terminate the manager was made due to lower conviction in the manager’s strategy to add value over the U.S. equity opportunity set.
------------------------------------
The tax-managed strategy run by Parametric focuses on minimizing taxable gains subject to a tracking error constraint relative to the broad US market (i.e., both value and growth stocks). The tax management stock implementation underperformed during the period.
Buoyed by easing inflation, a resilient economy, enthusiasm about AI and the prospect of lower interest rates, the S&P 500® increased by 22.70% for the Fiscal Year, compared to 19.59% last year. This is higher than the long-term average of 10.56%. The returns for the S&P 500® were very concentrated with the top 10 companies accounting for 69.4% (17.05% of 24.56%) of the total return of the S&P 500®. Growth outperformed Value stocks as enthusiasm about the prospects for AI drove mega growth stocks higher. The Russell 1000® Growth Index rose by 33.48% compared to the Russell 1000® Value Index which rose 13.06% during the Fiscal Year.
Fund performance based on $10,000 initial investment
The U.S. Equity Portfolio | |||
|---|---|---|---|
Jun 24 | 37,312 | ||
Jun 23 | 29,532 | ||
Jun 22 | 24,379 | ||
Jun 21 | 29,128 | ||
Jun 20 | 20,891 | ||
Jun 19 | 18,792 | ||
Jun 18 | 16,745 | ||
Jun 17 | 14,057 | ||
Jun 16 | 11,781 | ||
Jun 15 | 11,127 | ||
Jun 14 | 10,000 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
The U.S. Equity Portfolio | |||
S&P 500® Index | |||
Fund Statistics
Net Assets | $ |
Number of Portfolio Holdings | |
Net Investment Advisory Fees | $ |
Portfolio Turnover Rate |
What did the Fund invest in?
(As of June 30, 2024)
Portfolio Composition
Investments | Percent of Total Investments |
|---|---|
Information Technology | |
Financials | |
Health Care | |
Consumer Discretionary | |
Communication Services | |
Industrials | |
Consumer Staples | |
Energy | |
Real Estate | |
Materials | |
Utilities | |
Investment Companies | |
Contingent Rights |
Material Fund Changes
Changes In Or Disagreements With Accountants
There were no changes in or disagreements with accountants during the reporting period.
Additional information about the Fund (e.g. Financial Statements, Prospectus and Statement of Additional Information): is available at www.hccapitalsolutions.com or upon request, by calling (800) 242-9596 .
Fund Overview
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
Fund Name | Costs of a $10,000
investment | Costs paid as a percentage of a
$10,000 investment |
|---|---|---|
The U.S. Government Fixed Income Securities Portfolio | $ |
How did the Fund perform last year?
The U.S. Government Fixed Income Securities Portfolio (the “Portfolio”) managed by Mellon Investments Corporation and Parametric Portfolio Associates, LLC returned 2.69% for the fiscal year compared to 1.61% for the Bloomberg U.S. Government Bond Index.
The Portfolio outperformed the benchmark due to a shorter duration positioning relative to the Benchmark. As yields moved up, our shorter duration securities outperformed those with more duration. The Portfolio is structured to perform similarly to the benchmark. As such it uses a sampling methodology to select a subset of the index universe that maintains aggregate characteristics – duration, weighted average yield-to-maturity, and average credit quality in-line with the benchmark. Since the Portfolio owns a subset of securities of the Index, there will necessarily be some tracking error.
For most of the year, investors questioned whether the Fed would be able to orchestrate a soft landing – that is to reduce inflation and cool the economy without sending the economy into a recession. This uncertainty created volatility in the bond markets as the yield on the U.S. 10-year Treasury rose from 3.81% to a height of 4.98% in October before ending the Fiscal Year at 4.36%. The Bloomberg U.S. Aggregate Bond Index rose by 2.63% during the year.
By the end of the fiscal year, it appeared as though the miraculous had happened. Inflation started to moderate without any impact on corporate earnings or growth. In June 2024, the Consumer Price Index fell by 0.1% -- the first decrease in inflation since the onset of the pandemic. With price stability in sight, the Fed has indicated that it is "closer" to cutting interest rates. Fed Chairman Jerome Powell recently stated that the U.S. is "no longer an overheated economy" and that “the labor market appears to be fully back in balance. The Fed has guided the market to expect one rate cut but the market is slightly more hopeful and has priced in two rate cuts from 5.25% to 4.75% by the end of 2024.
The U.S. Government bond market posted weak performance for the fiscal year as the rates normalized higher as the Federal Reserve continued to raise the Fed Funds rate, pushing up long rates and concurrently pushing down prices (which move inversely to rates). The rise in global bond yields over the past year is consistent with stronger than expected inflation data and stronger growth.
Fund performance based on $10,000 initial investment
The U.S. Government Fixed Income Securities Portfolio | ||
|---|---|---|
Jun 24 | 10,978 | |
Jun 23 | 10,690 | |
Jun 22 | 10,772 | |
Jun 21 | 11,890 | |
Jun 20 | 12,295 | |
Jun 19 | 11,157 | |
Jun 18 | 10,439 | |
Jun 17 | 10,522 | |
Jun 16 | 10,740 | |
Jun 15 | 10,203 | |
Jun 14 | 10,000 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
The U.S. Government Fixed Income Securities Portfolio | - | ||
- |
Fund Statistics
Net Assets | $ |
Number of Portfolio Holdings | |
Net Investment Advisory Fees | $ |
Portfolio Turnover Rate |
What did the Fund invest in?
(As of June 30, 2024)
Portfolio Composition
Investments | Percent of Total Investments |
|---|---|
Investment Companies | |
U.S. Treasury Obligations | |
U.S. Government Agency Securities | |
Futures | |
Written Options | - |
Material Fund Changes
Changes In Or Disagreements With Accountants
There were no changes in or disagreements with accountants during the reporting period.
Additional information about the Fund (e.g. Financial Statements, Prospectus and Statement of Additional Information): is available at www.hccapitalsolutions.com or upon request, by calling (800) 242-9596 .
Fund Overview
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
Fund Name | Costs of a $10,000
investment | Costs paid as a percentage of a
$10,000 investment |
|---|---|---|
The U.S. Mortgage/Asset Backed Fixed Income Securities Portfolio | $ |
How did the Fund perform last year?
The U.S. Mortgage/Asset Backed Fixed Income Securities Portfolio (the “Portfolio”) managed by Mellon Investments Corporation returned 2.51% for the fiscal year compared to 2.38% for the Bloomberg U.S. Securitized Index.
The portfolio outperformed the benchmark driven by a modest underweight duration positioning.
The Portfolio is structured to simulate the performance of the benchmark. As such the Portfolio maintains aggregate characteristics – duration, weighted average yield-to-maturity, and average credit quality in line with the benchmark. The Mellon securitized strategy performed in-line with the benchmark. The Portfolio’s outperformance was due to the Advisor’s decision to allocate a portion of the Portfolio’s assets to cash to shorten the Portfolio’s duration.
For most of the year, investors questioned whether the Fed would be able to orchestrate a soft landing – that is to reduce inflation and cool the economy without sending the economy into a recession. This uncertainty created volatility in the bond markets as the yield on the U.S. 10-year Treasury rose from 3.81% to a height of 4.98% in October before ending the Fiscal Year at 4.36%. The Bloomberg U.S. Aggregate Bond Index rose by 2.63% during the year.
By the end of the fiscal year, it appeared as though the miraculous had happened. Inflation started to moderate without any impact on corporate earnings or growth. In June 2024, the Consumer Price Index fell by 0.1% -- the first decrease in inflation since the onset of the pandemic. With price stability in sight, the Fed has indicated that it is "closer" to cutting interest rates. Fed Chairman Jerome Powell recently stated that the U.S. is "no longer an overheated economy" and that “the labor market appears to be fully back in balance. The Fed has guided the market to expect one rate cut but the market is slightly more hopeful and has priced in two rate cuts from 5.25% to 4.75% by the end of 2024.
Fund performance based on $10,000 initial investment
The U.S. Mortgage/Asset Backed Fixed Income Securities Portfolio | ||
|---|---|---|
Jun 24 | 10,769 | |
Jun 23 | 10,506 | |
Jun 22 | 10,630 | |
Jun 21 | 11,619 | |
Jun 20 | 11,679 | |
Jun 19 | 11,110 | |
Jun 18 | 10,511 | |
Jun 17 | 10,532 | |
Jun 16 | 10,571 | |
Jun 15 | 10,197 | |
Jun 14 | 10,000 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
The U.S. Mortgage/Asset Backed Fixed Income Securities Portfolio | - | ||
- |
Fund Statistics
Net Assets | $ |
Number of Portfolio Holdings | |
Net Investment Advisory Fees | $ |
Portfolio Turnover Rate |
What did the Fund invest in?
(As of June 30, 2024)
Portfolio Composition
Investments | Percent of Total Investments |
|---|---|
U.S. Government Agency Mortgages | |
Investment Companies | |
Collateralized Mortgage Obligations | |
Asset Backed Securities | |
Utilities | |
Futures |
Material Fund Changes
Changes In Or Disagreements With Accountants
There were no changes in or disagreements with accountants during the reporting period.
