Clearwater Investment Trust N-CSR Certified annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number         811-05038        

        Clearwater Investment Trust        

(Exact name of registrant as specified in charter)

         2000 Wells Fargo Place, 30 East 7th Street, Saint Paul, Minnesota 55101-4930        
(Address of principal executive offices) (Zip code)

Owen T. Meacham, Esq.

The Northern Trust Company

50 South LaSalle Street, B-7

Chicago, IL 60603

Copy to:

John O’Hanlon, Esq.

Dechert LLP

200 Clarendon Street

27^th Floor

                 Boston, MA 02116                
(Name and address of agent for service)

Registrant’s telephone number, including area code:   651-228-0935  

Date of fiscal year end:    12/31/2011  

Date of reporting period: 12/31/2011

Item 1.  Reports to Stockholders

CLEARWATER INVESTMENT TRUST

Clearwater Growth Fund
Clearwater Small Cap Fund
Clearwater Tax-Exempt Bond Fund
Clearwater International Fund

Annual Report
for the year ended
December 31, 2011

Letter to our shareholders (unaudited)

February 29, 2012

We are pleased to present to you this annual report, which provides detailed information as to the performance of your Clearwater Funds for the year ended December 31, 2011. It was a volatile year for both U.S. and global equity markets, and this was reflected in the performance of the Clearwater Growth, Small Cap and International Funds. Despite these difficult market conditions, the Small Cap Fund significantly outperformed its benchmark, while the International Fund’s return was essentially in-line with its target. The Growth Fund, however, underperformed relative to its benchmark during its first year of employing a “multi-manager, multi-style strategy”. In a positive year for fixed income securities, the Tax-Exempt Bond Fund had a stellar year, outperforming the Barclays 5-Year Muni Index by over 70%, returning 11.81%, net of fees, versus the benchmark’s 6.95%.

We encourage you to read this annual report as it contains important information about your Clearwater Funds, including commentary from the managers who provide day-to-day management as subadvisers to the Funds. In addition, this report includes information describing the contract renewal process in December 2011, during which your Board of Trustees reviewed the performance of your investment manager, Clearwater Management Company, and that of each Clearwater subadviser.

We also encourage you to read the updated prospectus and statement of additional information which is mailed to you each year at the end of April. The annual update of the prospectus and statement of additional information includes important information that helps you better understand how the Clearwater Funds are managed and how the assets are invested.

We hope the information contained within this report is helpful to you. We thank you for your continued confidence and for choosing to invest with us.

George Weyerhaeuser, Jr.	Philip W. Pascoe
CEO, Clearwater Investment Trust	President, Clearwater Management Company

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Discussion of Clearwater Funds’ Performance

Please note that the discussion of a Fund’s overall performance is net of fees (i.e., after expenses have been deducted). However, because fees are applied at the total Fund level, discussion of an individual subadviser’s performance is gross of fees (i.e., before expenses have been deducted).

Clearwater Growth Fund

The Fund seeks long-term growth of capital. Current income, to the extent income is produced by the stocks held by the Fund, is a secondary objective. The Clearwater Growth Fund’s assets are managed in a “multi-manager, multi-style” approach. The Growth Fund has four subadvisers. Parametric Portfolio Associates (“Parametric”), with approximately 60% of the Fund’s assets, manages its portion of the Fund’s assets to mirror the Russell 1000^® Index. The remaining 40% of the Fund’s assets are divided between Heartland Advisers, Inc. (“Heartland”), Osterweis Capital Management, LLC (“Osterweis”), and Knightsbridge Asset Management, LLC (“Knightsbridge”), who all utilize an active management style.

2011 Market Overview:

The U.S. stock market, in which the Growth Fund primarily invests, was extremely volatile throughout 2011. During the early part of the year, positive investor sentiment related to a potential U.S. economic recovery pushed valuations higher. U.S. equity markets were subsequently affected negatively by the impact of the Japanese earthquake and tsunami, the uprisings in the Middle East, the uncertainty over the resolution of the U.S. debt ceiling, and the effect of the European sovereign debt crisis. The combination of all these factors resulted in a significant sell-off in U.S. equities through the third quarter of 2011. During the fourth quarter, improving U.S. economic news allowed for some price recovery, with the result that the U.S. equity markets ended the year not far from where they began. The S&P 500 increased a modest 2.11% for the year, while the Russell 1000® Index returned 1.51%.

2011 Performance:

The Clearwater Growth Fund’s return for 2011 was -3.04%, net of fees, as compared to 1.51% for the Russell 1000^® Index, the Fund’s benchmark. The portion of the portfolio managed by Parametric to mirror the benchmark also gained 1.51%, gross of fees. Performance and 2012 outlook commentary from each of the three “active” managers is provided below.

Heartland Performance Commentary: The portion of the Clearwater Growth Fund managed by Heartland returned -6.00%, gross of fees, for the year ended December 31, 2011, underperforming its benchmark, the Russell 1000^® Index, which returned 1.51%. The portfolio’s small cap bias contributed to its relative underperformance. Poor stock selection within the cyclical Energy and Information Technology sectors also hurt performance. Within the portfolio’s energy holdings, weakness was concentrated in refining and transportation stocks. Companies in the Information Technology sector, and particularly manufacturers of electronic components, were victim to the supply chain disruptions stemming from the Japanese tsunami earlier in the year and, more recently, from flooding in Thailand.

Osterweis Performance Commentary: For the year ended December 31, 2011, the portion of the Clearwater Growth Fund managed by Osterweis returned -4.08%, gross of fees, as compared to 1.51% for the Russell 1000^® Index. Our equity holdings underperformed the benchmark with a return of -2.92% for the full year. Additionally total portfolio performance was held back by our average cash allocation of 17% during the fourth quarter rally in the U.S. stock market. Although our equities held their own relative to the market in three out of the four quarters of the year, the damage delivered by the third quarter U.S. market sell-off pulled full-year 2011 absolute and relative equity results into the red. The rapid flight to safety across all asset classes in July and August created a very difficult market environment for active managers.

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Knightsbridge Performance Commentary: Knightsbridge’s portion of the Clearwater Growth Fund returned -15.1%, gross of fees, for the year ended December 31, 2011. Three of our larger sector allocations, Industrials, Materials, and Financials, underperformed their Russell 1000^® Index counterparts. All three also detracted from benchmark performance. Financial stocks, our biggest detractors from performance, were also the biggest detractors from the Russell 1000^® Index return for the year. Our investments in the Materials sector, specifically gold mining companies, did not provide the downside protection historically seen in their relationship to gold prices. We believe the relationship between gold and gold mining companies hasn’t fundamentally changed and will eventually be restored. For contrarian investors like us, the past year proved to be extremely difficult as the market preferred classically defensive sectors such as Consumer Staples and Utilities, where we had insufficient representation.

2012 Outlook (Heartland):

Our view is that some of the factors that held back the global economic recovery in 2011 will begin to abate in 2012. We are still concerned with Europe’s sovereign debt crisis as well as mixed economic indicators in the U.S. However, we believe a second financial crisis and/or a U.S. recession are unlikely in the coming year. With U.S. Treasury bond yields near historic lows, we believe that investors are inadequately compensated for holding long dated maturities. We expect that as the economy continues to show signs of moderate improvement, investors will begin returning to equities, and particularly to the types of high quality, attractively valued companies we identify through our disciplined investment approach.

2012 Outlook (Osterweis):

Despite obvious macroeconomic risks, we think the case for owning stocks is solid. We own numerous companies that we believe should deliver real earnings and cash flow growth even in a slow growth economy. If we combine that growth with a yield that, in some cases, ranges as high as 5% to 6% in the case of the master limited partnerships and 2% to 4% in many corporations, we believe there is the potential to produce a total return that compares favorably with the returns of all but the most speculative bonds. Stabilization in markets in the fourth quarter allowed many of our companies to trade back to more appropriate valuations, yet many stocks still strike us as meaningfully undervalued. Our hope is that these companies will exercise their financial strength to highlight value through share repurchase programs, dividend increases or both. We firmly believe that, over the long term, an avoidance of market fads and manias coupled with disciplined analysis of individual companies should continue to serve the portfolio well.

2012 Outlook (Knightsbridge):

We currently have a cautiously optimistic outlook on the market. We were confident enough to begin bringing down cash levels throughout the fourth quarter, having observed extremely negative sentiment, large amounts of insider buying, improvement in some market technical readings and plenty of companies buying back stock. However, we continue to see uncertainty around the European sovereign debt and banking crisis, mounting pressure on U.S. earnings and an unclear regulatory environment, especially in the U.S. As such, we expect lingering volatility in the equity markets during 2012, and we continue to hold approximately one quarter of our portfolio in combined cash and gold-related stocks to position ourselves against the still fragile macro-economic backdrop.

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Clearwater Small Cap Fund

The Fund normally invests at least 80% of its assets in equity securities of small companies. The Fund defines “small companies” as issuers with market capitalizations no greater than the range of capitalizations of the companies included in the Russell 2000^® Index at the time of investment. Equity securities consist primarily of exchange traded common and preferred stocks and convertible securities. The Fund may invest up to 20% of its assets in microcap securities. The Fund uses a “multi-style, multi-manager” approach with two subadvisers who employ distinct investment styles; Kennedy Capital Management (“Kennedy”) and Keeley Asset Management (“Keeley”).

2011 Market Overview:

Markets ended 2011 on an up note, after what had been a volatile year by historical standards. Domestic equity markets were helped by strong gains in the fourth quarter though many indexes still ended the year in negative territory. Throughout the quarter, investors were fixated on the European sovereign debt crisis. News of some progress toward a possible resolution of the European debt troubles helped fuel the 4th quarter rally, though sovereign debt issues in Europe will remain a central concern for investors for some time due to the complexities in achieving a workable solution among some 17 diverse member states. In addition, a divergence between the behavior of consumers and businesses became apparent in the 4th quarter. While businesses were showing signs of caution, consumers seem willing to spend. This trend suggests that pent-up demand over the past three years could become a tailwind to U.S. consumer discretionary spending going forward. On the other hand, business management teams still have a vivid memory of 2008. The fear of a second downturn could be causing them to be more vigilant in the current environment. Investment in inventories was weaker than expected in the third quarter, causing a downward revision to gross domestic product (GDP) from 2.5% to 2%. Housing remains soft, but manufacturing and the employment situation have shown signs of improvement. In fact, the most encouraging development entering the new year was a decrease in the unemployment rate, from 9.4% to 8.6%, which is the lowest level at which this measure has been since the beginning of 2009. As a result of this mixed picture, interest rates across the whole yield curve continue to sit at the lowest levels in several generations.

2011 Performance:

The Clearwater Small Cap fund posted a one-year return of -1.62%, net of fees and expenses, outperforming its benchmark, the Russell 2000^® Index, which returned -4.18%.

Kennedy Performance Commentary: In 2011, our portion of the Clearwater Small Cap Fund rose 0.47%, gross of fees, outperforming the Russell 2000^® Index benchmark return of -4.18%. Security selection contributed the majority of the outperformance, while sector allocation was a marginally positive factor. Financials remain our most significant sector underweight compared to the benchmark, as we continue to have a difficult time finding ideas that meet our investment criteria. Overall, the stocks we chose in the Consumer Discretionary and Information Technology sectors detracted from our 2011 relative performance. The strongest performing sector in the benchmark for 2011, which we were underweight, was Utilities. The low interest rate environment likely drove investors to gravitate towards these high-yielding securities. Despite these challenges, we managed to generate strong performance in other sectors and to outperform our benchmark. The strongest areas of outperformance were in Healthcare, Materials, and Industrials. Healthcare was a particular standout on the positive side, as we found opportunity in the continuing disarray wrought by domestic regulatory policies.

Keeley Performance Commentary: For the 12 months ended December 31, 2011, our portfolio slightly outperformed its benchmark, the Russell 2000^® Index. The portfolio returned approximately -4.00%, gross of fees, versus a return of -4.18% for the benchmark. From a sector contribution perspective, the Consumer Discretionary (+1.33%), Utilities (+0.71%) and Health Care (+0.22%) sectors contributed positively to returns as those sectors had strong stock selection. However, stock selection within the Financial sector (-1.15%) and Industrial sector (-0.59%) detracted from our portfolio’s performance. With regard to portfolio construction,

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we remain comfortable with our sector emphasis: overweight the Industrial and Materials sectors and underweight Technology. While we have also been underweight Financials for some time, we are beginning to add to this sector, with a special emphasis on mutual savings and loan (S&L) conversions. This niche served us well in the 1995-2004 period and we are now becoming increasingly enthused about some of the names within this area. The long-term catalyst for our fundamental positioning in the Industrial sector is our belief that we remain in a slow growth economic environment, and more importantly, there will be an increase in infrastructure spending on a global basis. Developing economies have a substantial amount of pent-up demand for infrastructure as they address the need to accelerate urbanization and increase their standard of living.

2012 Outlook (Kennedy):

We see the European sovereign debt crisis as a salient issue for global economic sentiment in 2012. Due to challenges in Europe, reliance on the U.S. end market has increased for most companies. Several economic indicators point to a continued (if uneven) recovery in the U.S. For example, the Household Debt Service Ratio (defined by the U.S. Federal Reserve Board (“the Fed”) as the ratio of debt payments to disposable personal income) has steadily decreased from its 14% peak in 2008 to a much more normal level of 11%. Along with some improvement in employment, we believe this may help to drive consumer spending higher. In addition, residential building permits have begun to increase after several successive years of decline. A sustained upturn in existing home sales and new home construction, aided by the accommodative the Fed policies, would be a meaningful additional catalyst for our domestic economy. However, we see added uncertainty in 2012 due to potential policy changes that may become more evident through this fall’s elections. We also have concerns about longer term issues such as high U.S. government debt levels (the impact of which has been masked by extraordinarily low borrowing rates, which are likely unsustainable) and healthcare initiatives that could place an additional burden on the economy.

2012 Outlook (Keeley):

Looking ahead, there are several factors that give us confidence that we are well positioned for events that should unfold, namely:

• An increase in M&A: A byproduct of our emphasis on corporate restructuring is that these events produce companies that are pure plays in individual industries; “pure plays”, by definition, are more takeover prone. As a result, the incidence of takeovers among companies within our portfolios is greater than the market at large. We believe that the pace of M&A will continue to rise throughout 2012.

• An increase in restructuring events: Activity within our key restructuring themes has increased markedly of late. For instance, the calendar of mutual S&L conversions contains almost 15 companies—more than we have seen in over five years. In addition, the number of companies which have announced spin-offs (Fortune Brands, Marathon, ITT and Motorola to name a few) have also increased recently. In this slow growth but positive economic recovery, we believe that companies of all sizes and in all sectors will increasingly rely on corporate restructuring to help maximize shareholder value. Since restructuring is what we have focused on for over 20 years, we believe that we have an advantage in this market environment.

Although a number of challenges remain, we expect a slow, but positive recovery. Despite the macroeconomic headwinds, management at a number of our companies remains optimistic due to increasing backlogs, improving order growth, and strong balance sheets. Additionally, management of these companies have taken advantage of the low interest rate environment to either retire debt altogether or extend maturities out to 2014-2015, creating a landscape that is vastly different than the 2008-2009 period when many companies were unprepared to handle the U.S. debt crisis. In this environment, we continue to identify attractive opportunities in individual companies and we remain committed to our value driven strategy which buys stocks of relatively unknown (spin-offs) and out of favor (below book value) companies. With a broader

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universe of opportunities coupled with continued economic progress, a low interest rate environment, and high levels of financial liquidity, we are encouraged about the prospects in the periods ahead.

Clearwater Tax-Exempt Bond Fund

The Fund invests at least 80% of its assets in tax-exempt securities, which are debt obligations issued by or for the U.S. states, territories and possessions and the District of Columbia. The interest on these securities is generally exempt from both U.S. regular federal income tax and U.S. federal alternative minimum tax. However, the Fund may invest up to 20% of its assets in securities that generate interest income subject to federal alternative minimum tax for individuals. The Fund invests in both revenue bonds, which are backed by and payable only from the revenues derived from a specific facility or specific revenue source, and in general obligation bonds, which are secured by the full faith, credit and taxation power of the issuing municipality. The Fund’s subadviser, Sit Fixed Income Advisers II, LLC (“Sit”), provides day to day management for the Fund.

2011 Market Overview (Sit):

Tax-exempt fixed income markets enjoyed a strong year in 2011 after a rough start caused by the Fed’s continued quantitative easing, the overhang from heavy supply in the fourth quarter of 2010, and some dire predictions at the end of 2010 for a huge increase in defaults in 2011, all of which led to significant redemptions in tax-exempt bond funds in late 2010 and early 2011. The forecasted huge increase in defaults did not materialize. Furthermore, 2011 saw the fewest defaults in the last five years. The Fed’s operations, specifically Operation Twist (announced in September with implementation commencing shortly thereafter), were effective in reducing long-term interest rates, unlike previous quantitative easing. Supply of municipal bonds was down about 30% in 2011 from 2010. State and local government tax collections continued to improve from the low recession-driven levels of 2008 and 2009 (although they have still not returned to pre-recession levels), such that even though assistance from the federal government’s stimulus programs decreased significantly throughout 2011, state and local government finances were generally on the upswing. Beginning in the second quarter of 2011, modest inflows began to return to tax-exempt bond funds. The Fed’s promise in August to hold short-term rates low until mid-2013 (since extended until late 2014) fueled further investor demand for tax-exempt bonds, especially on the long end.

2011 Performance (Sit):

The Clearwater Tax-Exempt Bond Fund returned 11.81%, net of fees, for the year ended December 31, 2011. The Fund’s benchmark, the Barclays 5 Year Municipal Bond Index, gained 6.95% over the same period. The Fund’s performance, due to its heavy emphasis on revenue bonds and its longer duration, significantly exceeded that of its benchmark in 2011. Given the Fed’s accommodative policies and the steep tax-exempt yield curve, we maintained the Fund’s average life duration, a measure of the Fund’s sensitivity to changes in interest rates, slightly above 6.0 years during the year, while yield fell due to the strength in market conditions in the final three quarters of the year. For comparison, the Fund’s benchmark, the Barclays 5 Year Municipal Bond Index, had an average duration of 3.9 years at December 31, 2011. Revenue bonds and general obligation bonds produced similar returns during 2011, with revenue bonds returning 11.4% for the year, while general obligation bonds returned 10.9%. Furthermore, longer duration underperformed intermediate duration, and lower quality issues outperformed those of higher credit quality, as investors sought yield.

2012 Market Outlook (Sit):

We expect growth to remain positive throughout 2012, although we believe it may slow somewhat in the first half of the year, with a modest pickup in the second half. With the housing and subprime mortgage mess still unwinding and unemployment still elevated, interest rates, while likely to remain low in absolute terms, may continue to be volatile during the year. We believe the Treasury yield curve should remain relatively steep, with yields rising some on the intermediate and long-term portions of the curve. We expect that the tax-exempt curve will grow somewhat flatter, with short-term rates remaining low and long-term tax-exempt

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yields falling somewhat as supply rebounds to a still manageable level and state and local government finances continue to improve, helping tax-exempt bonds outperform. One potential concern for the market will be the various tax reform proposals proffered by the candidates for President. While any such reform is unlikely in 2012, its potential form and likelihood of passage in 2013 could impact the market in the latter half of 2012. We expect revenue bonds to again be strong performers in 2012, as the Fed’s accommodative policies should continue to allay liquidity concerns in the market, and investor focus remains on yield. We expect general obligation bond performance to remain weaker on a relative basis, however, as despite their recent improvement, many cities, counties and states still have work to do. Furthermore, potential problems funding retirement pension and healthcare obligations still persist, and remain the subject of many of the negative media reports afflicting the municipal market. The Fund’s longer duration and its use of revenue and non-rated bonds have positioned it opportunistically for the economic and interest rate environment that we expect in 2012. Our investment of new portfolio cash flows will be focused on maturities in the 5-25 year range.

Clearwater International Fund

The Fund generally invests at least 80% of the value of its net assets in equity securities that trade in markets outside the United States. Such securities are generally issued by companies domiciled outside of the United States or companies that derive more than half of their revenues or pre-tax income from activities occurring outside of the United States. The Fund diversifies its investments among a number of different countries throughout the world, and may invest in companies of any size. The Fund generally does not invest more than 20% of its net assets in the equity securities of developing or emerging market issuers. The Fund uses a “multi-style, multi-manager” approach. The Fund’s adviser allocates portions of the Fund’s assets among subadvisers who employ distinct investment styles. The Fund currently has four subadvisers. Parametric manages its portion of the portfolio (approximately 60% of the Fund’s assets) to mirror the benchmark, the MSCI World ex US Index (net). The Fund also has three “active” managers (among whom the remaining 40% of the Fund’s assets are divided): AXA Rosenberg Investment Management LLC (“AXA Rosenberg”), Artisan Partners Limited Partnership (“Artisan Partners”), and Eagle Global Advisors, LLC (“Eagle”).

2011 Market Overview:

2011 was a grim year for global equities. For the most part, the tale of 2011 was an increasingly positive outlook for the U.S. economy and an increasingly bleak outlook for most international economies. The ongoing currency and sovereign debt crisis continued to weigh on European equities as investors anticipated a slowdown across the region. After touching a multi-year high in the spring, global equity markets were torpedoed by a series of events and concerns, starting with the Japan earthquake and quickly followed by the Arab Spring and the European sovereign debt crisis, along with concerns over the global growth engine as China manufacturing showed signs of slowing. As a result, the tension between company fundamentals and macroeconomic worries was on full display this past year and the international markets ended the year down sharply. Despite all of the very well-known problems in the Euro zone and in the U.S., the main underlying positive that an investor can take away from 2011 is that companies continued to report attractive earnings and cash flow progress.

2011 Performance:

The Clearwater International Fund performed very close to its benchmark, the MSCI World ex US Index (net), returning -12.44%, net of fees, versus the Index’s return of -12.20%. The portion of the portfolio managed by Parametric to mirror the benchmark returned -11.85%, gross of fees. Parametric’s outperformance reflected the positive impact of cash held in the portfolio. Performance and 2012 outlook commentary from each of the three “active” managers is included on the following pages.

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Axa Rosenberg Performance Commentary: Our Clearwater portfolio underperformed its benchmark in 2011, returning -15.87% for the year. We attribute some of this underperformance to the difficult market environment and particularly headwinds to value, which were pronounced in Europe. Neither balance sheet valuation measures such as book value, nor earnings growth measures were consistently rewarded, and stock selection, though positive in Japan, was the driver for underperformance. Stock selection amongst chemical companies and software were the largest detractors. Overweight exposure to Clariant and ACI Co. Ltd, and the defense company Finmeccanica SPA, were particularly hard hit despite attractive fundamentals.

Although our Clearwater portfolio is relatively neutral by region, country weights within Europe and Asia contributed on the margin. Industry exposure was also marginally positive as a result of the significant underweight to Banks and Miscellaneous Finance, and a strategic overweight to Chemicals. Stock selection within Metals was the top contributor with overweights to Iluka Resources and First Quantum Mining. The pharmaceutical company Meda AB of Sweden was also a top contributor, and stock selection amongst banks was strong, with an overweight to Legal and General and underweights to the Greek, Italian and Spanish banks.

Artisan Partners Performance Commentary: During the twelve-month period ended December 31, 2011, our portion of the Clearwater International Fund returned -5.93%, gross of fees, outperforming both the Fund’s benchmark at -12.20% and the MSCI EAFE^® Index, which returned -12.14%. Stock selection was a key driver of performance during the period. Performance of the following stocks had a positive impact on the portfolio during the period: Arch Capital Group Ltd., a provider of reinsurance and insurance products; Credit Saison Co., Ltd., a consumer credit company; Diageo plc, a producer of alcoholic beverages; Compass Group PLC, a catering company; and Accenture plc, a provider of management and technology consulting services. Notable detractors included: financial services providers Lloyds Banking Group plc and ING Groep N.V.; temporary employment company Adecco SA; aggregates and cement producer HeidelbergCement AG; and investment holding company Guoco Group Limited.

Eagle Performance Commentary: Our portion of the Clearwater International Fund underperformed its benchmark, returning -14.48% for the year ended December 31, 2011. Early in the year our portfolio was hurt by being overweight in the Financials sector, particularly our European holdings, which hurt performance. The portfolio was also hurt throughout the year by our holdings in emerging markets, although we are confident that these holdings will provide longer-term outperformance. The largest specific drags to the portfolio were a holding in a Japanese insurance company, which disappointed as changes in accounting due to changes in tax rates significantly affected near-term reported earnings, and a Dutch telecom company, which also disappointed as increased risks of a new entrant and dividend cuts from other European telecoms dented the stock’s performance. During the fourth quarter, the portfolio was hurt by being significantly underweight to Australia. From a country standpoint, being underweight to an underperforming Japan as well as good stock selection there contributed to performance, although not enough to offset underperformance in other areas.

2012 Outlook (Axa Rosenberg):

The late-year pick-up in U.S. economic indicators and pro-growth initiatives in China and Asia have helped improve investor sentiment, at least for the time being, though the European crisis is far from resolved. Undoubtedly, the further earnings downgrades and likely contraction within certain industries and markets in Europe will continue to create market volatility, but we believe the overall health of corporate balance sheets with historically high profit margins and cash balances provide a strong foundation for recovery and corporate investment longer-term. We have seen relatively consistent rationalization of fundamentals in the U.S., Japan and Asia, and we believe Europe offers significant latent value. Projected earnings yields have reached historical highs, and we believe these mis-pricings offer significant opportunity for active management.

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2012 Outlook (Artisan Partners):

We remained focused on the intersection of balance sheet strength, business quality and valuation during the period. We added several new positions to the portfolio, including: medical systems, consumer electronics and lighting manufacturer Koninklijke Philips Electronics N.V., previously mentioned ING Groep N.V. and lighting equipment manufacturer Stanley Electric Co., Ltd., and Michael Page International plc, a provider of recruitment consultancy services. We funded these purchases in part by selling our positions in Royal Dutch Shell PLC, Gemalto NV, BAE Systems plc, Givaudan SA and Daiwa Securities Group Inc.

2012 Outlook (Eagle):

The Eurozone economic activity continues to decelerate and appears headed towards a recession as the European sovereign debt crisis remains unresolved. European Union officials remain focused on resolving the problems but lasting solutions are hard to come by. The “German-bloc countries” which had been carrying the region economically stabilized somewhat during the fourth quarter as consumer and business confidence showed some relief. Concern in the Eurozone about credit rating downgrades remains high as credit spreads stay wide, refinancing auctions struggle, confidence wanes and austerity measures prove ineffective. While contracting throughout the year, the Japanese economy appears to be benefitting from reconstruction spending as many manufacturing facilities come back on line after the spring 2011 earthquake. However, as a result of the global economic slowdown, Japan’s export-led economy faces a headwind from a weakness in global trade and a stubbornly strong yen. The Bank of Japan continues to inject liquidity into the system in its effort to support the Japanese economy. Emerging economies have slowed but still contribute the bulk of global growth. China, India and Brazil are all enjoying robust domestic consumption trends.

The U.S. dollar strengthened versus the euro and the pound, but not the yen. Both the yen and U.S. dollar benefitted from the European sovereign debt crisis and global recession fears as investors reduced risk and sought these safe haven currencies. Currency volatility is expected to continue throughout 2012 as budget deficits, sovereign debt issues, policy risks, inflation pressures and trade imbalances create uncertainty. Inflation pressures appear to have ebbed globally as economic activity decelerates. Inflation trends in the emerging markets have also begun to ease as restrictive measures have slowed growth and commodity prices have pulled back.

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Comparison of the Change in Value of a $10,000 Investment in the Clearwater
Growth Fund and the Russell 1000 Index.

Comparison of the Change in Value of a $10,000 Investment in the Clearwater Small Cap
Fund and the Russell 2000 Index.

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Comparison of the Change in Value of a $10,000 Investment in the Clearwater Tax-Exempt
Bond Fund and the Barclay’s 5-Year Municipal Bond Fund Index

Comparison of the Change in Value of a $10,000 Investment in the Clearwater International
Fund and the MSCI World ex-US Index

* Clearwater International Fund inception date. A-11

Fund Expense Example
(unaudited)

As a shareholder of the Funds, you incur costs, including management fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. In addition to the ongoing costs which the Funds pay directly, you as a shareholder indirectly bear the expenses of any outside exchange traded funds or mutual funds in which the Funds invest. (These are also referred to as “acquired funds” and those indirect expenses represent the Funds’ pro rata portion of the cumulative expense charged by the acquired funds.)

The example provided is based on an investment of $1,000 invested at the beginning of the period and held for the six month period ended December 31, 2011.

Actual Expenses
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During the Period” to estimate the expenses attributable to your investment during this period.

Hypothetical Example for Comparison Purposes
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are provided to enable you to compare the ongoing costs of investing in the Clearwater Funds and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the second section of the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you compare the relative total costs of the Clearwater Funds to funds that charge transaction costs and/or sales charges or redemption fees.

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Actual	Beginning Account Value July 1, 2011	Ending Account Value December 31, 2011	Expenses Paid During the Period July 1, 2011 thru December 31, 2011 *
Growth Fund	$1,000.00	$927.10	$2.91
Small Cap Fund	$1,000.00	$899.60	$4.79
Tax-Exempt Bond Fund	$1,000.00	$1,069.00	$1.88
International Fund	$1,000.00	$835.40	$3.42
Hypothetical (5% return before expenses)
Growth Fund	$1,000.00	$1,022.18	$3.06
Small Cap Fund	$1,000.00	$1,020.16	$5.09
Tax-Exempt Bond Fund	$1,000.00	$1,023.39	$1.84
International Fund	$1,000.00	$1,021.48	$3.77

* Expenses are equal to the Fund’s annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The annualized expense ratios are as follows:

Growth Fund	0.60%
Small Cap Fund	1.00%
Tax-Exempt Bond Fund	0.36%
International Fund (a)	0.74%
(a) The expense ratio for the International Fund represents the blended expense ratio during the six month period. The management fee of the Fund was reduced through voluntary waivers to 0.75%, until December 5, 2011, when the voluntary waivers were increased and the expense ratio of the Fund became 0.70%.

Quarterly Portfolio Schedule of Investments

The Funds file a complete schedule of their portfolio holdings as of the close of the first and third quarters of their fiscal years with the SEC on Form N-Q. Shareholders may request copies of Form N-Q free of charge by calling the Transfer Agent toll free at 1-888-228-0935 or by sending a written request to: Fiduciary Counselling, Inc., 30 East 7^th Street, Suite 2000, St. Paul, MN 55101 Attn: Clearwater Investment Trust. These filings are also available on the SEC’s Internet site at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information about the public reference room may be obtained by calling 1-800-SEC-0330.

A-13

Voting Proxies on Fund Portfolio Securities

The funds have established Proxy Voting Policies and Procedure (“Policies”) that the funds use to determine how to vote proxies relating to portfolio securities. They also report, on Form N-PX, how the Funds voted any such proxies during the most recent 12-month period ended June 30. Shareholders may request copies of the Policies or Form N-PX free of charge by calling Fiduciary Counselling, Inc. toll free at 1-888-228-0935 or by sending a written request to: Fiduciary Counselling, Inc., 30 East 7^th Street, Suite 2000, St. Paul, MN 55101 Attn: Clearwater Investment Trust. Form N-PX is also available from the EDGAR database on the SEC’s Internet site at http://www.sec.gov.

A-14

EXECUTIVE TRUSTEES AND OFFICERS

Information About the Funds’ Independent Trustees

Name, Address and Age	Positions Held with the Funds	Term of Office and Length of Time Served	Principal Occupation(s) During the Last 5 Years	Number of Portfolios in the Fund Complex Overseen by the Trustee	Other Directorships Held by the Trustee During the Last 5 Years
James E. Johnson (69) 30 East 7th Street, Saint Paul, Minnesota 55101	Trustee	Tenure: May 2011 – Present Term: Indefinite	Retired as Executive Vice President, Securian Financial Group, Inc. in 2010, Securian Financial Group, Inc. (1968-2010)	4	None
Charles W. Rasmussen (45)(1) 30 East 7th Street, Saint Paul, Minnesota 55101	Trustee	Tenure: 10 yrs Term: Indefinite	President and Chief Executive Officer, P&G Manufacturing, Inc. (air filtration equipment, 2002- Present)	4	None
Laura E. Rasmussen (48)(1) 30 East 7th Street, Saint Paul, Minnesota 55101	Trustee	Tenure: 10 yrs Term: Indefinite	Business Owner, 3 Kittens Needle Arts (textile sales, 2006-Present)	4	None
Edward R. Titcomb III (37) 30 East 7th Street, Saint Paul, Minnesota 55101	Trustee	Tenure: May 2011 – Present Term: Indefinite	Assistant Vice President, Anchor Bank-Anchor Trust (2010-Present), Key Account Manager, GWG Life (2008-2010), Relationship Manager, The Hartford (2007-2008), Trust Officer, US Trust (2004-2006)	4	None
Justin H. Weyerhaeuser (38) 30 East 7th Street, Saint Paul, Minnesota 55101	Trustee	Tenure: 4 yrs(2) Term: Indefinite	Attorney, Davis Graham & Stubbs LLP (law firm, November 2011 – Present), Husch Blackwell (law firm, July 2011 – November 2011), Jacobs Chase Attorneys (2009-July 2011), Volunteer Attorney, ACLU of Colorado (2007-2009), Private Investor (2006-2007)	4	None

(1)	Mr. Rasmussen and Ms. Rasmussen are spouses-in-law, and are nieces or nephews of Mr. Frederick T. Weyerhaeuser (see below).
(2)	Mr. Weyerhaeuser was elected as an Independent Trustee on March 7, 2008.

A-15

EXECUTIVE TRUSTEES AND OFFICERS

Information about the Funds’ Executive Officers and Interested Trustees

Name, Address and Age	Positions Held with the Funds	Term of Office and Length of Time Served	Principal Occupation(s) During the Last 5 Years	Number of Portfolios in the Fund Complex Overseen by the Trustee	Other Directorships Held by the Trustee During the Last 5 Years
Frederick T. Weyerhaeuser (80)* 30 East 7th Street, Saint Paul, Minnesota 55101	Trustee, Vice President and Secretary	As Trustee; Tenure: 22 yrs Term: Indefinite As Officer; Tenure: 22 yrs Term: Reappointed Annually	Private Investor	4	None
George H. Weyerhaeuser Jr. (58) ** 30 East 7th Street, Saint Paul, Minnesota 55101	Trustee, Chairman, Chief Executive Officer and Treasurer	As Trustee: Tenure: 3 yrs Term: Indefinite As Officer: Tenure: 3 yrs Term: Reappointed Annually	Member, Advisory Board, Pictet Advisory Overseas Services Ltd (2009-Present), Senior Vice President, Technology, Weyerhaeuser Company (1998 – 2006), Director, Clearwater Management Company (1987 – 2006)	4	Foss Waterway Development Authority
Jennifer D. Lammers (51) 30 East 7th Street, Saint Paul, Minnesota 55101	Chief Compliance Officer	Tenure: Setember 2009 – Present Term: Reappointed Annually	Chief Compliance Officer, Clearwater Management Company, Inc. (2009-Present), Chief Compliance Officer, Fiduciary Counselling, Inc. (2009-Present), Chief Compliance Officer, River Source Funds and Riversource Investments (2006-2009), President, Tamarack Funds and Director of Finance, Voyageur Asset Management (2003 – 2006)	N/A	N/A

* Mr. F.T. Weyerhaeuser is an interested trustee due to his daughter’s position as a director of Clearwater Management Company, the Funds’ investment manager.

**Mr. G.H. Weyerhaeuser Jr. is an interested trustee due to his positions as the Funds’ CEO and Treasurer.

A-16

EXECUTIVE TRUSTEES AND OFFICERS

Information about the Funds’ Executive Officers and Interested Trustees

Name, Address and Age	Positions Held with the Funds	Term of Office and Length of Time Served	Principal Occupation(s) During the Last 5 Years	Number of Portfolios in the Fund Complex Overseen by the Trustee	Other Directorships Held by the Trustee During the Last 5 Years
Catherine A. Nguyen (30) The Northern Trust Company 50 South LaSalle Street Chicago, IL 60603	Assistant Treasurer	Tenure: September 2011 – Present Term: Reappointed Annually	The Northern Trust Company, Vice President and Client Service Delivery Manager, 2011 – present; Deloitte & Touche LLP, External Audit Manager 2008-2010, External Audit Senior 2005-2008	N/A	N/A
Marcia Lucas (43) The Northern Trust Company 50 South LaSalle Street Chicago, IL 60603	Assistant Secretary	Tenure: March 2011 – Present Term: Reappointed Annually	Second Vice President, The Northern Trust Company (2010-Present), Partner, Michael Best & Friedrich LLP (2005-2008)	N/A	N/A

Additional information about the Fund Directors is available in the Funds’ Statement of Additional Information (“SAI”). The SAI is available, without charge, upon request, by contacting the transfer agent at (888) 228-0935 or writing the Funds at 2000 Wells Fargo Place, 30 East 7^th Street, St. Paul, Minnesota 55101-4930. The Funds do not have an internet website.

A-17

Approval of the Investment Management and Subadviser Service Agreements

Clearwater Management Company (“CMC”) is responsible for managing the investment programs and strategies for the Growth Fund, Small Cap Fund, Tax-Exempt Bond Fund, and International Fund (collectively, “the Funds”). CMC also provides other administrative services to the Funds, and these services, as well as its investment management services, are provided to the Funds under an agreement (the “Management Agreement”). CMC conducts due diligence when selecting each subadviser (collectively, the “Subadvisers”) for the Funds and oversees the performance of the Subadvisers. The Subadvisers provide portfolio management and related services for the Funds under individual subadvisory agreements (the “Subadvisory Agreements”).

On an annual basis, the Funds’ Board of Trustees (the “Trustees”) including the independent trustees, considers renewal of the Management Agreement and the Subadvisory Agreements. In addition, the Trustees may periodically consider the retention of new subadvisers.

At their in-person meeting on December 2-3, 2011, the Trustees considered the renewal of the Management Agreement and those of the Subadvisory Agreements for Artisan Partners Limited Partnership, AXA Rosenberg Investment Management LLC, Eagle Global Advisors, LLC, Fiduciary Counselling, Inc., Heartland Advisors, Inc., Keeley Asset Management Corp., Kennedy Capital Management, Inc., Knightsbridge Asset Management, LLC, Osterweis Capital Management, LLC, Parametric Portfolio Associates, and Sit Fixed Income Advisors II, LLC. Prior to the meeting, the Trustees requested, received, and reviewed written responses from CMC and the Subadvisers to questions posed to them on behalf of the Trustees and supporting materials relating to those questions and responses. The information presented at the meeting, including performance and expense data obtained from independent sources, were designed to assist the Trustees in making their determination as to the renewal of the Management Agreement and Subadvisory Agreements. Also during this meeting, counsel to the Funds reviewed with the Trustees the various factors relevant to their consideration of the Management Agreement and Subadvisory Agreements, and the Trustees’ responsibilities related to their review. In addition to the information presented on December 2-3, 2011, at each regularly scheduled meeting throughout the year, the Trustees reviewed information on the investment performance and financial results of the Funds. The Trustees considered a number of factors, including those discussed below, that they believed to be relevant. No single factor determined whether or not an agreement would be approved but rather the totality of factors considered was determinative. Following an analysis and discussion of the factors described below, the Trustees, including all independent trustees present, approved renewal of the Management Agreement and the Subadvisory Agreements for an additional one-year period.

Nature, Extent and Quality of Services Provided
The Trustees considered information presented as to the services provided by CMC and the Subadvisers, as well as their investment expertise, resources and capabilities. The Trustees considered the quality of the Subadvisers previously recommended by CMC, as well as the ongoing work performed by CMC to recommend enhancements as to individual fund management or creation of new funds. The Trustees reviewed information regarding the financial condition of CMC and the Subadvisers as related to their ongoing ability to provide services as specified under the Management Agreement and Subadvisory Agreements. The

A-18

Trustees considered that FCI provides, in addition to investment management services, certain services related to due diligence, performance reporting, compliance, and other administrative functions, which support the investment management services and Subadviser oversight services provided by CMC. Based on their analysis of the data presented, the Trustees concluded that they were generally satisfied with the nature and quality of the services being provided under the Management Agreement and respective Subadvisory Agreements.

Investment Performance
The Trustees reviewed specific information as to the investment performance of the Funds as compared to the performance of their respective benchmark indices and peer groups over various periods of time. The Trustees also reviewed reports summarizing the net assets, redemptions and purchases of shares of the Funds during 2011. The Trustees concluded that they were satisfied with CMC and the Subadvisers’ investment performance to date.

Comparative Fees and Cost of Services Provided
The Trustees reviewed the fees paid to CMC and the Subadvisers. The Trustees reviewed reports describing both the management fees charged by CMC and the total expense ratios of the Funds in comparison to those of similarly situated funds. In addition, on a quarterly basis, the Trustees reviewed information as to the expense ratios of the Funds compared to the median expense ratio of a peer group of funds with a comparable investment strategy. The Trustees also reviewed information provided by each of the Subadvisers as to fees they charge to other subadvisory clients. The Trustees noted the ongoing efforts of CMC to reduce fees paid by shareholders via voluntary waivers which were in place for the Growth Fund, International Fund, Small Cap Fund and Tax-Exempt Fund during 2011. Effective June 1, 2011, CMC put a voluntarily waiver of 0.30% of its investment advisory fee in place for the Growth Fund. Over the course of 2011, CMC twice increased its voluntary waiver for the International Fund from 0.20% to 0.25% and again to 0.30%. Effective June 1, 2011, CMC decreased its voluntary waiver for the Small Cap Fund to 0.35%. The Trustees also noted the commitment of CMC to subsidize the operating costs of the multi-manager Growth Fund until such time as a revised fee structure was approved by shareholders.

Management Profitability
The Trustees also reviewed CMC’s profitability, particularly noting CMC’s payment of fees and expenses normally absorbed by mutual fund shareholders. The Trustees concluded that profitability levels for CMC were reasonable. The Trustees considered that the Subadvisers are each independent firms and their advisory fees charged are the result of arm’s length bargaining between them and CMC under the supervision of the Trustees.

Economies of Scale
The Trustees considered whether economies of scale might be realized by CMC as the Funds’ assets grow, and whether there also might be benefits from such growth for the Funds’ shareholders. The Trustees noted that the Growth, Tax-Exempt and Small Cap Funds have been in operation for a number of years, and based on the distribution strategy of the Funds will probably not see significant increases in size. However, the Trustees determined that they would continue to monitor the assets of the Funds and consider whether there were additional opportunities to realize benefits from economies of scale for shareholders in the future.

A-19

Based on the factors as described above, the Trustees, including all of the independent trustees present, concluded that the investment management fees and subadvisory fees were fair and reasonable in view of the investment performance and quality of services provided. In reaching this conclusion, no single factor was considered determinative.

A-20

Federal Tax Information
(unaudited)

Qualified Dividend Income. Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), 100% and 93.52% of ordinary dividends paid during the fiscal years ended December 31, 2011 and 2010, respectively, for the Growth Fund, 20.68% and 81.15% of ordinary dividends paid during the fiscal years ended December 31, 2011 and 2010, respectively, for the Small Cap Fund, and 100% and 88.34% of ordinary dividends paid during the fiscal years ended December 31, 2011 and 2010, respectively, for the International Fund are designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2011.

Corporate Dividends-Received Deduction. 100% and 20.51% of the dividends distributed during the fiscal year ended December 31, 2011, for the Growth and Small Cap Funds, respectively, qualify for the dividends-received deduction for corporate shareholders.

A-21

	KPMG LLP 4200 Wells Fargo Center 90 South Seventh Street Minneapolis, MN 55402
Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders
Clearwater Investment Trust:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Clearwater Growth Fund, Clearwater Small Cap Fund, Clearwater Tax-Exempt Bond Fund, and Clearwater International Fund (funds within Clearwater Investment Trust) (the Funds) as of December 31, 2011, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2011, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Clearwater Growth Fund, Clearwater Small Cap Fund, Clearwater Tax-Exempt Bond Fund, and Clearwater International Fund as of December 31, 2011, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Minneapolis, Minnesota
February 29, 2012

KPMG LLP is a Delaware limited liability partnership,
the U.S. member firm of KPMG International Cooperative
(“KPMG International”), a Swiss entity.

CLEARWATER INVESTMENT TRUST

Statements of Assets and Liabilities

December 31, 2011

	Growth Fund			Small Cap Fund			Tax-Exempt Bond Fund			International Fund
Assets
Investments in securities, at fair value (identified cost: $233,914,332 Growth Fund; $212,304,257 Small Cap Fund; $503,433,825 Tax-Exempt Bond Fund; $252,423,468 International Fund)	$	332,503,398			239,059,023			510,380,170			300,527,508
Foreign currencies, at value (cost: $460,547)		—			—			—			462,288
Receivable for securities sold		—			1,096,537			2,662,842			4,029,846
Receivable for shares of beneficial interest sold		—			50,000			139,000			804,000
Accrued dividend and interest receivable		424,310			245,697			6,354,652			449,533
Foreign tax reclaim receivable		4,653			—			—			493,569
Unrealized appreciation on forward foreign currency exchange contracts		—			—			—			10,247
Total assets		332,932,361			240,451,257			519,536,664			306,776,991
Liabilities
Payables for investment securities purchased		118,640			342,454			—			1,124,327
Accrued investment advisory fee		493,342			600,972			468,844			572,873
Payable for dividend distribution		—			—			233,947			—
Foreign currencies overdraft, at value (cost: $23)		21			—			—			—
Unrealized depreciation on forward foreign currency exchange contracts		—			—			—			8,432
Total liabilities		612,003			943,426			702,791			1,705,632
Net assets	$	332,320,358			239,507,831			518,833,873			305,071,359
Capital
Capital stock and additional paid-in capital (authorized unlimited number of shares at no par value for each Fund: outstanding 13,156,048, 14,162,307, 53,930,477 and 24,945,062 shares, respectively)	$	251,405,302			216,230,785			520,202,119			262,357,830
Undistributed net investment income (loss)		28,372			—			(13,410	)		(806,303	)
Accumulated net realized loss from investments and foreign currency transactions		(17,702,383	)		(3,477,720	)		(8,301,181	)		(4,599,111	)
Unrealized appreciation of investments and translation of assets and liabilities in foreign currencies		98,589,067			26,754,766			6,946,345			48,118,943
Net assets	$	332,320,358			239,507,831			518,833,873			305,071,359
Net asset value per share of outstanding capital stock	$	25.26			16.91			9.62			12.23

See accompanying notes to financial statements.

2

CLEARWATER INVESTMENT TRUST

Statements of Operations

Year ended December 31, 2011

	Growth Fund			Small Cap Fund			Tax-Exempt Bond Fund			International Fund
Investment income:
Income:
Dividends (net of foreign taxes withheld of $20,969, $630, $0 and $949,488 respectively)	$	6,096,658			2,580,725			2,616,770			9,902,624
Interest		—			15,159			25,642,060			647
Total income		6,096,658			2,595,884			28,258,830			9,903,271
Expenses:
Investment advisory fee		2,370,421			3,418,437			3,116,105			3,395,194
Voluntary fee reduction		(534,334	)		(941,695	)		(1,246,445	)		(785,839	)
Total net expenses		1,836,087			2,476,742			1,869,660			2,609,355
Net investment income		4,260,571			119,142			26,389,170			7,293,916
Realized gain (loss) on investments and foreign currencies:
Security transactions		(6,597,400	)		30,103,847			(887,827	)		(4,309,620	)
Forward foreign currency exchange contracts		—			—			—			(247,124	)
Foreign currency transactions		(4,023	)		—			—			(15,970	)
Net increase (decrease) in appreciation/depreciation on:
Security transactions		(8,158,082	)		(32,921,523	)		32,296,176			(46,549,703	)
Forward foreign currency exchange contracts		—			—			—			(3,232	)
Foreign currency transactions		1,739			—			—			2
Translation of other assets and liabilities denominated in foreign currencies		—			—			—			(15,257	)
Net gain (loss) on investments		(14,757,766	)		(2,817,676	)		31,408,349			(51,140,904	)
Net increase (decrease) in net assets resulting from operations	$	(10,497,195	)		(2,698,534	)		57,797,519			(43,846,988	)

See accompanying notes to financial statements.

3

CLEARWATER INVESTMENT TRUST

Statements of Changes in Net Assets

Years ended December 31, 2011 and 2010

	Growth Fund						Small Cap Fund
	12/31/2011			12/31/2010			12/31/2011			12/31/2010
Operations:
Net investment income (loss)	$	4,260,571			4,891,408			119,142			(48,605	)
Net realized gain (loss) on investments		(6,601,423	)		6,955,378			30,103,847			32,398,334
Net change in unrealized appreciation/depreciation		(8,156,343	)		31,768,081			(32,921,523	)		28,799,775
Net increase (decrease) in net assets resulting from operations		(10,497,195	)		43,614,867			(2,698,534	)		61,149,504
Distributions to shareholders from:
Net investment income		(4,182,151	)		(5,115,464	)		(93,237	)		(215,518	)
Net realized gain on investments		—			—			(20,564,115	)		—
Total distributions to shareholders		(4,182,151	)		(5,115,464	)		(20,657,352	)		(215,518	)
Capital share transactions:
Proceeds from shares sold		12,580,223			20,011,202			15,200,741			7,569,800
Reinvestment of distributions from net investment income and gain		4,182,151			5,115,464			20,657,352			215,518
Payments for shares redeemed		(14,032,377	)		(12,544,217	)		(29,231,102	)		(26,817,519	)
Increase (decrease) in net assets from capital share transactions		2,729,997			12,582,449			6,626,991			(19,032,201	)
Total increase (decrease) in net assets		(11,949,349	)		51,081,852			(16,728,895	)		41,901,785
Net assets:
At the beginning of the year		344,269,707			293,187,855			256,236,726			214,334,941
At the end of the year	$	332,320,358			344,269,707			239,507,831			256,236,726
Undistributed net investment income	$	28,372			—			—			—

See accompanying notes to financials statements.

	Tax-Exempt Bond Fund						International Fund
	12/31/2011			12/31/2010			12/31/2011			12/31/2010
Operations:
Net investment income	$	26,389,170			26,998,001			7,293,916			5,327,567
Net realized gain (loss) on investments		(887,827	)		1,110,682			(4,572,714	)		2,032,458
Net change in unrealized appreciation/depreciation		32,296,176			(11,571,237	)		(46,568,190	)		27,617,574
Net increase (decrease) in net assets resulting from operations		57,797,519			16,537,446			(43,846,988	)		34,977,599
Distributions to shareholders from:
Net investment income		(26,365,905	)		(27,018,340	)		(7,103,317	)		(5,388,519	)
Net realized gain on investments		—			—			(717,130	)		(2,441,263	)
Total distributions to shareholders		(26,365,905	)		(27,018,340	)		(7,820,447	)		(7,829,782	)
Capital share transactions:
Proceeds from shares sold		14,973,923			27,399,592			21,869,448			31,956,533
Reinvestment of distributions from net investment income and gain		26,372,119			26,778,179			7,820,447			7,829,782
Payments for shares redeemed		(70,145,905	)		(69,888,506	)		(19,365,745	)		(13,421,383	)
Increase (decrease) in net assets from capital share transactions		(28,799,863	)		(15,710,735	)		10,324,150			26,364,932
Total increase (decrease) in net assets		2,631,751			(26,191,629	)		(41,343,285	)		53,512,749
Net assets:
At the beginning of the year		516,202,122			542,393,751			346,414,644			292,901,895
At the end of the year	$	518,833,873			516,202,122			305,071,359			346,414,644
Undistributed net investment loss	$	(13,410	)		(20,090	)		(806,303	)		(807,038	)

See accompanying notes to financial statements.

4

CLEARWATER INVESTMENT TRUST

Financial Highlights

December 31, 2011

Per share data (rounded to the nearest cent) for a share of capital stock outstanding throughout the years and selected information for each year is as follows:

	Year ended December 31,
Growth Fund	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	26.38			23.40			18.60			30.57			29.47
Income from investment operations:
Net investment income		0.33			0.38			0.39			0.51			0.48
Net realized and unrealized gain (loss)		(1.13	)		2.99			4.78			(11.96	)		1.10
Total from investment operations		(0.80	)		3.37			5.17			(11.45	)		1.58
Less distributions:
Dividends from net investment income		(0.32	)		(0.39	)		(0.37	)		(0.52	)		(0.48	)
Total distributions		(0.32	)		(0.39	)		(0.37	)		(0.52	)		(0.48	)
Net asset value, end of year	$	25.26			26.38			23.40			18.60			30.57
Total return (a)		(3.04	)%		14.42	%		27.90	%		(37.50	)%		5.40	%
Net assets, end of year (000s omitted)	$	332,320			344,270			293,188			197,263			330,991
Ratio of expenses, net of waivers, to average net assets (b)(c)(d)		0.53	%		0.30	%		0.28	%		0.28	%		0.28	%
Ratio of expenses, before waivers, to average net assets (b)(c)(d)		0.69	%		0.45	%		0.45	%		0.45	%		0.45	%
Ratio of net investment income, net of waivers, to average net assets (b)(d)		1.25	%		1.60	%		1.98	%		1.92	%		1.61	%
Ratio of net investment income, before waivers, to average net assets (b)(d)		1.09	%		1.45	%		1.81	%		1.75	%		1.44	%
Portfolio turnover rate (excluding short-term securities)		27.01	%		43.65	%		21.83	%		14.71	%		17.99	%

(a)	Total return figures are based on the change in net asset value of a share during the year and assume reinvestment of distributions at net asset value.
(b)	Effective December 1, 2010, the Adviser discontinued the voluntary waiver previously in effect.
(c)	In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
(d)	Effective June 1, 2011, the investment advisory fee, net of voluntary waivers, increased to 0.60%.
	Also effective June 1, 2011, the Adviser increased the voluntary waiver to 0.30%.

5

CLEARWATER INVESTMENT TRUST

Financial Highlights

December 31, 2011

	Year Ended December 31,
Small Cap Fund	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	18.70			14.41			10.39			16.68			18.71
Income from investment operations:
Net investment income		0.01			—			—			0.05			—
Net realized and unrealized gains (losses)		(0.28	)		4.31			4.02			(6.29	)		0.58
Total from investment operations		(0.27	)		4.31			4.02			(6.24	)		0.58
Less distributions:
Distributions from net investment income		(0.01	)		(0.02	)		—			(0.05	)		—
Distributions from net realized gains		(1.51	)		—			—			—			(2.61	)
Total distributions		(1.52	)		(0.02	)		—			(0.05	)		(2.61	)
Net asset value, end of year	$	16.91			18.70			14.41			10.39			16.68
Total return (a)		(1.62	)%		29.99	%		38.70	%		(37.40	)%		3.10	%
Net assets, end of year (000s omitted)	$	239,508			256,237			214,335			120,846			246,987
Ratio of expenses, net of waivers, to average net assets (b)(c)		0.98	%		0.95	%		0.95	%		0.95	%		0.98	%
Ratio of expenses, before waivers, to average net assets (b)(c)		1.35	%		1.35	%		1.35	%		1.35	%		1.35	%
Ratio of net investment income (loss), net of waivers, to average net assets(c)		0.05	%		(0.02	)%		(0.04	)%		0.32	%		0.00	%
Ratio of net investment loss, before waivers, to average net assets(c)		(0.32	)%		(0.42	)%		(0.44	)%		(0.08	)%		(0.37	)%
Portfolio turnover rate (excluding short-term securities)		64.54	%		71.05	%		95.13	%		117.12	%		115.19	%

(a)	Total return figures are based on the change in net asset value of a share during the year and assume reinvestment of distributions at net asset value.
(b)	In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
(c)	Effective June 1, 2011, the investment advisory fee, net of voluntary waivers, increased to 1.00%. Also effective June 1, 2011, the Adviser reduced the voluntary waiver to 0.35%.

6 (Continued)

CLEARWATER INVESTMENT TRUST

Financial Highlights

December 31, 2011

	Year ended December 31,
Tax-Exempt Bond Fund	2011			2010			2009			2008			2007
Net asset value, beginning of year	$	9.06			9.25			8.09			9.64			10.06
Income from investment operations:
Net investment income		0.48			0.47			0.47			0.46			0.46
Net realized and unrealized gains (losses)		0.56			(0.19	)		1.16			(1.55	)		(0.42	)
Total from investment operations		1.04			0.28			1.63			(1.09	)		0.04
Less distributions:
Distributions from net investment income		(0.48	)		(0.47	)		(0.47	)		(0.46	)		(0.46	)
Total distributions		(0.48	)		(0.47	)		(0.47	)		(0.46	)		(0.46	)
Net asset value, end of year	$	9.62			9.06			9.25			8.09			9.64
Total return (a)		11.81	%		2.99	%		20.60	%		(11.80	)%		0.60	%
Net assets, end of year (000s omitted)	$	518,834			516,202			542,394			370,848			337,395
Ratio of expenses, net of waivers, to average net assets (b)		0.36	%		0.36	%		0.36	%		0.37	%		0.38	%
Ratio of expenses, before waivers, to average net assets (b)		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of net investment income, net of waivers, to average net assets		5.08	%		5.00	%		5.34	%		5.03	%		4.75	%
Ratio of net investment income, before waivers, to average net assets		4.84	%		4.76	%		5.10	%		4.80	%		4.53	%
Portfolio turnover rate (excluding short-term securities)		24.83	%		28.95	%		22.90	%		32.20	%		27.58	%

(a)	Total return figures are based on the change in net asset value of a share during the year and assume reinvestment of distributions at net asset value.
(b)	In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.

7 (Continued)

CLEARWATER INVESTMENT TRUST

Financial Highlights

December 31, 2011

	Year ended December 31,			Year ended December 31,			Period Ended December 31,
International Fund	2011			2010			2009(a)(b)
Net asset value, beginning of period	$	14.33			13.16			10.00
Income from investment operations:
Net investment income		0.30			0.23			0.19
Net realized and unrealized gains (losses)		(2.08	)		1.27			3.35
Total from investment operations		(1.78	)		1.50			3.54
Less distributions:
Distributions from net investment income		(0.29	)		(0.23	)		(0.18	)
Distributions from net realized gains		(0.03	)		(0.10	)		(0.20	)
Total distributions		(0.32	)		(0.33	)		(0.38	)
Net asset value, end of period	$	12.23			14.33			13.16
Total return (c)		(12.44	)%		11.39	%		35.50	%
Net assets, end of period (000s omitted)	$	305,071			346,415			292,902
Ratio of expenses, net of waivers, to average net assets (d)(e)(f)		0.77	%		0.80	%		0.92	%
Ratio of expenses, before waivers, to average net assets (d)(e)(f)		1.00	%		1.00	%		1.00	%
Ratio of net investment income, net of waivers, to average net assets (d)(f)		2.15	%		1.77	%		1.74	%
Ratio of net investment income, before waivers, to average net assets (d)(f)		1.92	%		1.57	%		1.66	%
Portfolio turnover rate (excluding short-term securities)		36.93	%		30.82	%		35.33	%

(a)	Commenced investment operations on February 5, 2009.
(b)	Net investment income for the period ended was calculated using the average shares outstanding method.
(c)	Total return figures are based on the change in net asset value of a share during the period and assume reinvestment of distributions at net asset value. Total return is not annualized for periods of less than one year.
(d)	Annualized for periods of less than one year.
(e)	In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
(f)	Effective June 1, 2011, the investment advisory fee, net of voluntary waivers, decreased to 0.75%. Also effective June 1, 2011, the Adviser increased the voluntary waiver to 0.25%. Effective December 5, 2011, the investment advisory fee, net of voluntary waivers, decreased to 0.70%. Also effective December 5, 2011, the Adviser increased the voluntary waiver to 0.30%.

8 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

(1) Organization

Clearwater Investment Trust (the “Trust”) was established on January 12, 1987 as a Massachusetts business trust and is registered under the Investment Company Act of 1940 (as amended) as a diversified open end management investment company and presently includes four series of funds: Clearwater Growth Fund, Clearwater Small Cap Fund, Clearwater Tax-Exempt Bond Fund, and Clearwater International Fund (the “Funds”). Clearwater Management Company (the “Adviser”) serves as the investment adviser for the Funds. The Trust’s declaration of trust permits the Board of Trustees to create additional funds in the future. The investment objective of the Clearwater Growth, Small Cap, and International Funds is long-term capital growth. The investment objective of the Clearwater Tax-Exempt Bond Fund is high current income that is exempt from U.S. federal income tax, consistent with preservation of capital.

Fiduciary Counselling, Inc. (“FCI”) acts as subadviser to each Fund. FCI does not provide day-to-day management, but provides the Funds with various investment-related services, including investment strategy advice, manager recommendations and related duties as requested by the Adviser. FCI also provides certain services related to due diligence, performance reporting, compliance, and other administrative functions, which support the investment management services and subadviser oversight services provided to the Funds by the Adviser.

The Clearwater Growth Fund, using a “multi-style, multi-manager” approach, allocates portions of its assets among subadvisers who employ distinct investment styles. The Fund currently has four subadvisers that provide day-to-day management for the Fund, Parametric Portfolio Associates (“Parametric”), Heartland Advisors, Inc. (“Heartland”), Knightsbridge Asset Management, LLC (“Knightsbridge”) and Osterweis Capital Management, LLC (“Osterweis”). The allocation among subadvisers will vary over time, but the current intent of the Fund’s Adviser is that under normal market conditions approximately 60% of the Fund’s net assets will be allocated to Parametric; the remaining net assets will be allocated to one or more of the Fund’s three other subadvisers. Parametric manages its portion of the Fund’s assets in a passive management strategy so that its portion of the Fund’s holdings matches the holdings of the Russell 1000® Index as closely as possible. In addition, as noted above, FCI also acts as a subadviser to the Fund.

The Clearwater Small Cap Fund normally invests at least 80% of its assets in equity securities of small companies. The Fund defines “small companies” as issuers with market capitalizations no greater than the range of capitalizations of the companies included in the Russell 2000® Index at the time of investment. The market capitalization of the companies included in the Russell 2000® Index as of May 31, 2011, was between $130 million and $3.0 billion. The equity securities the Fund invests in consist primarily of exchange traded common and preferred stocks. The Fund may also invest in a type of equity security called a convertible security to hedge sector volatility. A convertible security generally entitles the holder to receive interest paid or accrued on debt securities or the dividend paid on preferred stock until the convertible security matures or is redeemed, converted or exchanged. The Fund may invest up to 20% of its assets in microcap securities, generally defined as securities with a market capitalization of at least $78 million and under $300 million. The Fund currently has two subadvisers that provide day-to-day management for the Fund, Kennedy Capital Management, Inc. (“Kennedy”) and Keeley Asset Management (“Keeley”). In addition, as noted above, FCI also acts as a subadviser to the Fund.

The Clearwater Tax-Exempt Bond Fund invests at least 80% of its assets in tax-exempt bonds, which are debt obligations issued by or for the U.S. states, territories and possessions, and the District of Columbia. The interest on these securities is generally exempt from regular federal income tax and may also be exempt from federal alternative minimum tax. However, the Fund may invest up to 20% of its assets in

9

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

bonds that generate interest income subject to federal alternative minimum tax. The Fund currently has one subadviser that provides day-to-day management for the Fund, Sit Fixed Income Advisers II, LLC (“Sit”). In addition, as noted above, FCI also acts as a subadviser to the Fund.

Under normal market circumstances, the Clearwater International Fund intends to invest at least 80% of the value of its net assets in equity securities of companies organized or located outside the United States and doing a substantial amount of business outside the United States. Equity securities in which the Fund invests include common and preferred stock, sponsored and unsponsored American Depository Receipts, European Depository Receipts, and Global Depository Receipts and exchange-traded funds and other investment companies. The Fund diversifies its investments among a number of different countries throughout the world, and may invest in companies of any size. The Fund does not currently intend to invest more than 20% of its net assets in the equity securities of developing or emerging market issuers. The Fund currently has four subadvisers that provide day-to-day management for the Fund, Parametric, AXA Rosenberg Investment Management LLC (“AXA Rosenberg”), Artisan Partners Limited Partnership (“Artisan Partners”), and Eagle Global Advisors, LLC (“Eagle”). In addition, as noted above, FCI also acts as a subadviser to the Fund.

(2)       Summary of Significant Accounting Policies

The significant accounting policies followed by the Funds are as follows:

(a)	Investments in Securities
	Investments in U.S. and foreign equity securities are valued at the last sales price or the regular trading session closing price on the principal exchange or market where they are traded. Foreign security values are stated in U.S. dollars. Equity securities which have not traded on the date of valuation or securities for which sales prices are not generally reported are valued at the mean between the last bid and asked prices. Debt securities maturing more than 60 days from the valuation date are valued at the market price supplied by an independent pricing vendor; those securities of sufficient credit quality with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued at amortized cost, which approximates fair value. Securities for which no market quotations are readily available (including those for which trading has been suspended), or when the Adviser becomes aware that a significant event impacting the value of a security or group of securities has occurred after the closing of the exchange on which the security or securities principally trade, but before the calculation of the daily net asset value, are valued at fair value as determined in good faith using procedures established by the Board of Trustees. The procedures consider, among others, the following factors to determine a security’s fair value: the nature and pricing history (if any) of the security; whether any dealer quotations for the security are available; and possible valuation methodologies that could be used to determine the fair value of the security. These procedures are used by the Valuation Committee, in accordance with the procedures established by the Board of Trustees, to determine the fair value of the security or securities. Such determinations are then submitted for review and ratification by the Board of Trustees.
	Security transactions are accounted for on the trade date, which is the date the securities are purchased or sold. Realized gains and losses are calculated on an identified cost basis. Dividend income is recognized on the ex-dividend date or, for foreign securities, as soon as the information is

10 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

	available. Interest income, including accretion of original issue discount and amortization of original issue premium, is accrued daily.
(b)	Foreign Currency Translation
	The International Fund invests in securities which are purchased and sold in foreign currencies as a principal investment strategy. The costs of purchases, proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot market rate of exchange prevailing on the respective dates of such transactions. The value of the International Fund’s assets, as measured in U.S. dollars, may be affected favorably or unfavorably by changes in foreign currency exchange rates and exchange control regulations. The gains or losses, if any, on investments resulting from changes in foreign exchange rates are included on the Statements of Operations in security transactions within realized gain (loss) on investments and foreign currencies and in security transactions within net increase (decrease) in appreciation/depreciation. The realized gains or losses, if any, on translation of other assets and liabilities denominated in foreign currencies are included in foreign currency transactions on the Statements of Operations within realized gain (loss) on investments and foreign currencies. The International Fund also will incur costs in converting U.S. dollars to local currencies, and vice versa. The International Fund therefore may enter into foreign currency transactions as a principal investment strategy. Risks may arise upon investing in foreign securities including, but not limited to, political, social or economic instability in the country of the issuer, the difficulty of predicting international trade patterns, the possibility of the imposition of exchange controls, expropriation, limits on removal of currency or other assets, nationalization of assets, foreign withholding and income tax and possible delays in the settlement of foreign stock exchange transactions. The principal markets on which these securities trade may have less volume and liquidity, and may be more volatile, than securities markets in the United States.
(c)	Forward Foreign Currency Exchange Contracts
	The International Fund enters into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date as a hedge against either specific transactions or the portfolio position. The objective of the International Fund’s foreign currency hedging transactions is to reduce the risk that the U.S. dollar value of the International Fund’s foreign currency denominated securities will decline in value due to changes in foreign currency exchange rates. Forward foreign currency exchange contracts are marked-to-market daily at the applicable exchange rates. Any resulting unrealized gains or losses are recorded in forward foreign currency exchange contracts on the Statements of Operations within net increase (decrease) in appreciation/depreciation. The International Fund records realized gains or losses at the time the forward foreign currency exchange contract is offset by entering into a closing transaction with the same counterparty or is extinguished by delivery of the currency. Realized gains or losses, if any, are included in forward foreign currency exchange contracts on the Statements of Operations within net realized gain (loss) on investments and foreign currencies.
	Risks may arise upon entering into forward foreign currency exchange contracts from the potential of the issuer to default on its obligations under the contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The contractual amounts of forward foreign currency exchange contracts do not necessarily represent the amounts potentially subject to risk. The measurement of risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. The International Fund bears the market risk from changes in

11 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

	foreign currency exchange rates and the credit risk if the issuer fails to perform. Additional information on derivative instruments and how these positions may impact the financial statements is found in Note 8.
(d)	Spot Contracts
	The International Fund routinely enters into spot contracts in order to buy or sell a certain amount of foreign currency at the current market rate, with settlement occurring in two business days. The International Fund may enter into spot contracts in order to make payments, or to receive payments, based on trading activity in a foreign currency. A spot contract allows the International Fund to buy or sell foreign currency on the day it chooses to deal. From time to time, the Growth Fund may also enter into spot contracts in order to make or receive payments due to trading activity in a foreign currency on a non-U.S. exchange. Spot contracts are marked-to-market daily at the applicable exchange rates. Any resulting unrealized gains or losses are recorded in foreign currency transactions on the Statements of Operations within net increase (decrease) in appreciation/depreciation. The Funds record any realized gains or losses at the time the spot contract settles. Realized gains or losses, if any, are included in foreign currency transactions on the Statements of Operations within realized gain (loss) on investments and foreign currencies. Risks may arise upon entering into spot contracts from unanticipated movements in the value of a foreign currency relative to the U.S. dollar in a short period of time. The Funds bear the market risk from changes in foreign currency exchange rates.
(e)	Delayed Delivery Transactions and When-Issued Securities
	Certain Funds may engage in securities transactions on a when-issued or delayed-delivery basis. In these transactions, the securities’ prices and yields are fixed on the date of the commitment, with payment and delivery scheduled for a future date. During this period, the securities are subject to market fluctuations. When delayed-delivery purchases are outstanding, a Fund will segregate liquid assets on their records in amounts sufficient to meet the purchase price. A Fund may dispose of or renegotiate a delayed-delivery transaction, which may result in a capital gain or loss.
(f)	Short-Term Investments
	Each Fund currently invests uninvested cash in money market portfolios of Northern Institutional Funds. The Growth, Small Cap and International Funds currently invest in the Government Select Portfolio and the Tax-Exempt Bond Fund currently invests in the Tax-Exempt Portfolio. Northern Institutional Funds is an investment company advised by Northern Trust Investments, Inc. (“NTI”), a subsidiary of The Northern Trust Company (“Northern Trust”). Northern Trust serves as custodian, administrator and accounting services agent for the Trust.
	The Government Select Portfolio primarily invests in securities issued by the U.S. government, government agencies, and government-sponsored enterprises. The Tax-Exempt Portfolio primarily invests in high-quality short-term municipal instruments.
(g)	Recoverable Taxes
	The balance disclosed as foreign tax reclaim receivable represents net amounts withheld by foreign governments on dividend income earned in the respective countries subject to reclamation. All reclaims are paid directly to the Growth and International Funds, respectively.

12 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

(h)

Federal Taxes

The Trust’s policy is to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies. On a calendar-year basis, the Funds intend to distribute substantially all of their net investment income and net realized gains, if any, to avoid the payment of federal income and excise taxes. Therefore, no income tax provision is required. Each fund is treated as a separate entity for federal income tax purposes. Management has analyzed the Funds’ tax positions taken on federal tax returns for all open tax years and has concluded that as of December 31, 2011, no provision for income tax would be required in the Funds’ financial statements. The Funds’ federal and Minnesota state income and federal excise tax returns for the 2008, 2009, 2010 and 2011 tax years for which the applicable statutes of limitations have not expired remain subject to examination by the Internal Revenue Service and state departments of revenue. Net investment income and net realized gains (losses) for the Funds may differ for financial statement and tax purposes. The character of distributions made during the year from net investment income or net realized gains, if any, may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Funds. The tax character of distributions paid by the Funds during the years ended December 31, 2011 and 2010 was as follows:

	Tax-Exempt				Ordinary Income
	2011		2010		2011		2010
Growth Fund	$	—	$	—	$	4,182,151	$	5,115,464
Small Cap Fund		—		—		44,627		215,518
Tax-Exempt Bond Fund		26,002,514		26,457,141		369,605		321,038
International Fund		—		—		7,184,471		6,288,664

	Long-Term Capital Gains
	2011		2010
Growth Fund	$	—	$	—
Small Cap Fund		20,612,725		—
Tax-Exempt Bond Fund		—		—
International Fund		635,976		1,541,118

13 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

As of December 31, 2011, the components of distributable earnings on a tax basis were as follows:

	Growth Fund			Small Cap Fund			Tax-Exempt Bond Fund			International Fund
Undistributed ordinary income	$	28,373			—			—			59,402
Undistributed capital gain		—			170,009			—			—
Accumulated capital losses		(17,527,589	)		(3,617,354	)		(8,301,181	)		(4,051,717	)
Unrealized appreciation		98,414,272			26,724,391			6,946,345			46,705,845
Total	$	80,915,056			23,277,046			(1,354,836	)		42,713,530

On the Statements of Assets and Liabilities, due to permanent book-to-tax differences, the following adjustments have been made:

	Growth Fund			Small Cap Fund			Tax-Exempt Bond Fund			International Fund
Undistributed net investment income (loss)	$	(50,048	)	$	(25,905	)	$	(16,585	)	$	(189,864	)
Accumulated net realized gain (loss)		50,048			(30,813	)		16,585			189,864
Additional paid-in capital		—			56,718			—			—

(i)	Distributions to Shareholders
	Distributions to shareholders from net investment income, if any, are declared annually for the Growth, Small Cap, and International Funds and declared daily, payable monthly, for the Tax-Exempt Bond Fund. Distributions to shareholders from net realized gains, if any, are declared annually for all Funds. Distributions are paid in cash or reinvested in additional shares at the direction of the shareholders.
(j)	Use of Estimates
	The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increase and decrease in net assets from operations during the period. Actual results could differ from those estimates.
(k)	Recent Accounting Pronouncements
	On May 12, 2011, the International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard (“IFRS”) 13, Fair Value Measurement. At the same time, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 Fair Value Measurement: Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (“ASU 2011-04”), modifying Accounting

14 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

	Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures. The objective of the FASB and IASB is convergence of their guidance on fair value measurements and disclosures. Specifically, ASU 2011-04 requires reporting entities to disclose 1) the amounts of and any reason for any transfers between Level 1 and Level 2, and 2) for Level 3 fair value measurements, a) quantitative information about significant unobservable inputs used, b) a description of the valuation processes used by the reporting entity and c) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. The requirement of ASU 2011-04 will be effective for the Clearwater Investment Trust as of the Form N-Q to be filed for the period ended March 31, 2012. At this time, management is evaluating the implications of this requirement and the impact it will have to the Funds’ financial statement disclosures.
(l)	Indemnification
	Under each Fund’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to each Fund. In addition, certain of each Fund’s contracts with its service providers contain general indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against each Fund cannot be determined and each Fund has no historical basis for predicting the likelihood of any such claims.
(3)	Fair Value Measurements
Fair value is an estimate of the price the Funds would receive upon selling a security in a timely transaction to an independent buyer in the principal or most advantageous market of the security. This guidance establishes a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Funds’ investments, as described in Note 2(a) above. These inputs are summarized in the three broad levels listed below.
•	Level 1 – Unadjusted quoted market prices in active markets for identical securities on the measurement date.
•	Level 2 – Other significant observable inputs including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc. or quoted prices for identical or similar assets in markets that are not active. Inputs that are derived principally from or corroborated by observable market data are also considered a Level 2 measurement. An adjustment to any observable input that is significant to the fair value may render the measurement a Level 3 measurement.
•	Level 3 – Valuations based on unobservable inputs, which may include the Adviser’s own assumptions in determining the fair value of an investment.

15 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the investments of each Fund as of December 31, 2011 using the fair value methodology and levels described above:

	Growth Fund (a)
	Level 1		Level 2		Level 3		Total
Common Stocks	$	320,260,449	$	—	$	—	$	320,260,449
Rights		840		—		—		840
Short-Term Investments		12,242,109		—		—		12,242,109
Total	$	332,503,398	$	—	$	—	$	332,503,398

(a) For the Growth Fund, 100% of the investment value is comprised of equity securities, rights, and short-term investments. See the Fund’s Schedule of Investments for industry classification. Investments in equity and short-term securities are generally valued at the last sales price or the regular trading session closing price on the principal exchange or market where they are traded.

The Fund discloses significant transfers between levels based on valuations at the end of each reporting period. At December 31, 2011, there were no significant transfers between Level 1 and Level 2 based on levels assigned to the securities on December 31, 2010. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

	Small Cap Fund (b)
	Level 1		Level 2		Level 3		Total
Common Stocks	$	237,162,071	$	—	$	—	$	237,162,071
Short-Term Investments		1,896,952		—		—		1,896,952
Total	$	239,059,023	$	—	$	—	$	239,059,023

(b) For the Small Cap Fund, 100% of the investment value is comprised of equity securities and short-term investments. See the Fund’s Schedule of Investments for industry classification. Investments in equity and short-term securities are generally valued at the last sales price or the regular trading session closing price on the principal exchange or market where they are traded.

The Fund discloses significant transfers between levels based on valuations at the end of each reporting period. At December 31, 2011, there were no significant transfers between Level 1 and Level 2 based on levels assigned to the securities on December 31, 2010. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

16 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

	Tax-Exempt Bond Fund (c)
	Level 1		Level 2		Level 3		Total
Closed-End Funds	$	40,118,209	$	—	$	—	$	40,118,209
Municipal Bonds
Airport		—		1,707,620		—		1,707,620
Bond Bank		—		2,603,965		—		2,603,965
Development		—		17,413,485		181,777		17,595,262
Education		—		55,574,239		—		55,574,239
Facilities		—		7,126,582		—		7,126,582
General		—		50,103,228		—		50,103,228
General Obligation		—		13,180,883		—		13,180,883
Higher Education		—		11,975,377		990,330		12,965,707
Housing		—		13,356,881		—		13,356,881
Medical		—		84,797,953		1,144,754		85,942,707
Mello-Roos		—		3,192,912		—		3,192,912
Multifamily Housing		—		35,503,841		—		35,503,841
Nursing Home		—		40,787,421		—		40,787,421
Pollution		—		2,547,600		—		2,547,600
Power		—		4,337,637		619,400		4,957,037
School District		—		18,273,795		—		18,273,795
Single Family Housing		—		49,428,806		—		49,428,806
Student Loan		—		9,302,575		—		9,302,575
Tobacco Settlement		—		4,602,392		—		4,602,392
Transportation		—		20,217,407		—		20,217,407
Utilities		—		1,921,870		964,241		2,886,111
Water		—		6,635,140		—		6,635,140
Short-Term Investments		11,769,850		—		—		11,769,850
Total	$	51,888,059	$	454,591,609	$	3,900,502	$	510,380,170

(c) For the Tax-Exempt Bond Fund, 100% of the investment value is comprised of closed-end funds, municipal bond securities, and short-term investments. The municipal bond securities are generally considered Level 2 securities based on valuations using adjusted evaluated prices provided by the primary pricing provider. The Board of Trustees has delegated to the Valuation Committee the responsibility to determine in good faith the fair value of securities for which no price quotation is available from an approved pricing service or broker-dealer at the time the Fund’s net asset value is calculated, including securities for which the prices do not represent fair value or for which a significant event occurs that materially affects the value of a security after the close of the market on which the security principally trades and before the time the Fund’s net asset value is calculated. As of December 31, 2011, the Valuation Committee determined the fair valuations of municipal bonds based on inputs such as a last traded price at the time of a significant event, observations of a similar security and

17 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

averages observed by an independent pricing service and consideration of any other events relevant to fair value. Such investments have been classified as Level 3 instruments.

The Fund discloses significant transfers between levels based on valuations at the end of each reporting period. At December 31, 2011, there were no significant transfers between Level 1 and Level 2 based on levels assigned to the securities on December 31, 2010. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

	International Fund (d)
	Level 1		Level 2		Level 3		Total
Common Stocks
Consumer Discretionary	$	36,429,585	$	—	$	—	$	36,429,585
Consumer Staples		35,358,532		—		—		35,358,532
Energy		26,454,768		—		—		26,454,768
Financials		61,151,943		—		—		61,151,943
Health Care		25,039,568		—		—		25,039,568
Industrials		40,795,017		—		—		40,795,017
Information Technology		14,873,425		—		—		14,873,425
Materials		30,094,476		—		13,218		30,107,694
Telecommunication Services		14,482,859		—		—		14,482,859
Utilities		10,565,770		—		—		10,565,770
Preferred Stock
Consumer Discretionary		1,105,949		—		—		1,105,949
Consumer Staples		136,200		—		—		136,200
Energy		333,558		—		—		333,558
Industrials		47,630		—		—		47,630
Materials		226,600		—		—		226,600
Utilities		123,318		—		—		123,318
Corporate Bonds
Financials		—		1,221,777		—		1,221,777
Short-Term Investments		2,073,315		—		—		2,073,315
Total	$	299,292,513	$	1,221,777	$	13,218	$	300,527,508

(d) For the International Fund, 100% of the investment value is comprised of equity securities, corporate bonds, and short-term investments. See the Fund’s Schedule of Investments for geographical classification. As of December 31, 2011, the Valuation Committee determined the fair valuation of a common stock based on inputs such as a last traded price at the time of a significant event and considerations of any other events relevant to fair value. This investment has been classified as Level 3 instrument.

18 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

The Fund discloses significant transfers between levels based on valuations at the end of each reporting period. At December 31, 2011, there were no significant transfers between Level 1 and Level 2 based on levels assigned to the securities on December 31, 2010. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

Other Financial Instruments	Level 1		Level 2			Level 3		Total
Assets
Forward foreign currency exchange contracts	$	—	$	10,247		$	—	$	10,247
Liabilities
Forward foreign currency exchange contracts	$	—	$	(8,432	)	$	—	$	(8,432	)
Total Other Financial Instruments	$	—	$	1,815		$	—	$	1,815

The forward foreign currency exchange contracts outstanding at December 31, 2011 are considered Level 2 investments due to the contracts and transactions being marked-to-market daily at the applicable exchange rates that have been adjusted from the initial quoted rate. Forward foreign currency exchange contracts are shown on a gross basis in the above table and on the Statements of Assets and Liabilities.

19 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

The following is a reconciliation of investments for the Funds in which significant unobservable inputs (Level 3) were used in determining fair value:

Small Cap Fund	Common Stock
	Information Technology
Balance as of 12/31/10	$	350
Realized Gains		1,619
Realized Losses		—
Change in Unrealized Appreciation		373
Change in Unrealized Depreciation		—
Purchases		—
Sales		(2,342	)
Transfers into Level 3		—
Transfers out of Level 3		—
Balance as of 12/31/11	$	—

As of December 31, 2011, the change in unrealized gains (losses) on the Level 3 security still held at year end was $0.

20 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

Tax-Exempt Bond Fund	Municipal Bonds
	Development			Higher Education			Medical			Power			Utilities			Total
Balance as of 12/31/10	$	—		$	96,381		$	—		$	671,000		$	—		$	767,381
Realized Gains		—			—			—			—			—			—
Realized Losses		—			(12	)		—			—			—			(12	)
Change in Unrealized Appreciation		—			1,787			—			—			—			1,787
Change in Unrealized Depreciation		—			—			—			(51,600	)		—			(51,600	)
Purchases		—			—			—			—			—			—
Sales		—			(98,156	)		—			—			—			(98,156	)
Transfers into Level 3(1)		181,777	(2)		990,330	(3)		1,144,754	(3)		—			964,241	(2)		3,281,102
Transfers out of Level 3(1)		—			—			—			—			—			—
Balance as of 12/31/11	$	181,777		$	990,330		$	1,144,754		$	619,400		$	964,241		$	3,900,502

(1)	The value of Transfers into and out of Level 3 is measured using the fair value as of the period ended December 31, 2011.
(2)	Transferred from Level 2 to Level 3 due to security being valued based on unobservable inputs in addition to utilizing the last traded price from a pricing service and because there is a lack of market activity and data observed for this security.
(3)	Transferred from Level 2 to Level 3 due to security being valued based on fair valuations determined by procedures adopted by the Board of Trustees and because there is a lack of market activity and data observed for this security.

As of December 31, 2011, the change in unrealized losses on Level 3 securities still held at year end and included in the Statements of Operations broken out by the sectors of Development, Higher Education, Medical, Power and Utilities was $0, $(3,052), $(56,521), $(51,600) and $0, respectively.

21 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

International Fund	Corporate Bonds			Common Stock
	Financials			Materials			Total
Balance as of 12/31/10	$	819,483		$	—		$	819,483
Realized Gains		—			—			—
Realized Losses		(106,730	)		—			(106,730	)
Change in Unrealized Appreciation		—			—			—
Change in Unrealized Depreciation		(67,862	)		—			(67,862	)
Purchases		407,068			—			407,068
Sales		(1,051,959	)		—			(1,051,959	)
Transfers into Level 3(1)		—			13,218	(2)		13,218
Transfers out of Level 3(1)		—			—			—
Balance as of 12/31/11	$	—		$	13,218		$	13,218

(1)	The value of Transfers into and out of Level 3 is measured using the fair value as of the period ended December 31, 2011, due to lack of market activity and data observed for this security.
(2)	Transferred from Level 1 to Level 3 due to security being valued based on unobservable inputs in addition to utilizing the last traded price from a pricing service and because there is a lack of market activity and data observed for this security.

As of December 31, 2011, the change in unrealized gains (losses) on the Level 3 security still held at year end was $0.

(4) Investment Security Transactions

The cost of purchases and proceeds from sales of securities, other than temporary investments in short term securities, for the year ended December 31, 2011, were as follows:

	Purchases		Sales
Growth Fund	$	106,174,991	$	89,591,950
Small Cap Fund		161,097,960		174,029,912
Tax-Exempt Bond Fund		124,840,485		164,660,683
International Fund		134,283,152		123,817,229

22 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

(5) Capital Share Transactions

Transactions in shares of each fund for the years ended December 31, 2011 and 2010 were as follows:

	Growth Fund						Small Cap Fund
	2011			2010			2011			2010
Sold		475,905			834,658			834,746			493,809
Issued for reinvested distributions		164,587			193,841			1,204,510			11,507
Redeemed		(536,437	)		(503,567	)		(1,577,251	)		(1,679,055	)
Increase (decrease)		104,055			524,932			462,005			(1,173,739	)
	Tax-Exempt Bond Fund						International Fund
	2011			2010			2011			2010
Sold		1,644,366			2,944,661			1,625,059			2,404,910
Issued for reinvested distributions		2,847,845			2,846,912			641,546			550,618
Redeemed		(7,552,170	)		(7,420,481	)		(1,491,664	)		(1,042,676	)
Increase (decrease)		(3,059,959	)		(1,628,908	)		774,941			1,912,852

(6) Capital Loss Carry Over

For the period subsequent to October 31, 2011 through the fiscal year ended December 31, 2011, the following Funds incurred net capital losses, and/or Section 988 currency losses which each Fund intends to treat as having been incurred in the following fiscal year:

	Amount
Growth Fund	$	954,316
Small Cap Fund		3,617,354
International Fund		2,492,237

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes were made effective for the Funds for the fiscal year ended December 31, 2011. One of the more prominent changes addresses capital loss carryforwards. Under the Act, each Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.

23 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

As of December 31, 2011, pre-enactment capital loss carryforwards for U.S. Federal income tax purposes for the Growth Fund, Small Cap Fund, Tax-Exempt Bond Fund and International Fund are $10,839,789, $0, $7,429,939, and $0, respectively, which will expire as follows:

	Growth Fund		Small Cap Fund		Tax-Exempt Bond Fund		International Fund
Year of expiration:
2015	$	—		—		411,406		—
2016		2,269,706		—		3,472,571		—
2017		8,570,083		—		3,545,962		—
Total	$	10,839,789		—		7,429,939		—

The following Funds’ capital loss carryforwards do not expire.

	Growth Fund		Small Cap Fund		Tax-Exempt Bond Fund		International Fund
Long-Term Capital Loss Carryforward	$	—		—		871,242		—
Short-Term Capital Loss Carryforward		5,733,485		—		—		1,559,480

The Funds in the above table may offset future capital gains with these capital loss carryforwards.

The following capital loss carryforwards were utilized at December 31, 2011, for U.S. Federal income tax purposes:

	Amount
Small Cap Fund	$	12,965,349

24 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

(7) Expenses and Related-Party Transactions

The Trust has a contract for investment advisory services with the Adviser. Under terms of separate agreements, Clearwater Growth Fund, Clearwater Small Cap Fund, Clearwater Tax-Exempt Bond Fund and Clearwater International Fund pay a fee equal to an annual rate of 0.90%, 1.35%, 0.60% and 1.00% of average net assets, respectively. Effective June 1, 2011, Clearwater Growth Fund’s investment advisory fee increased from 0.45% to 0.90% of average net assets. The Adviser is responsible for the payment or reimbursement of all the Funds’ expenses, except brokerage, taxes, interest, and extraordinary expenses. The Adviser has periodically reduced its management fee for each of the Funds through voluntary waivers. Effective June 1, 2011, the voluntary waivers for the Growth Fund and International Fund were increased to 0.30% and 0.25%, respectively. The voluntary waiver for the Small Cap Fund was decreased to 0.35%, effective June 1, 2011. Effective December 5, 2011, the voluntary waiver for the International Fund was increased to 0.30%. As of December 31, 2011, the management fees paid by the Growth, Small Cap, Tax-Exempt Bond and International Funds net of voluntary waiver are 0.53%, 0.98%, 0.36%, and 0.77%, respectively. Effective December 31, 2011, the management fees in place, net of voluntary waivers, for the Growth, Small Cap, Tax-Exempt Bond, and International Funds are 0.60%, 1.00%, 0.36%, and 0.70%, respectively.

In addition to fees and expenses which the Funds bear directly, the Funds indirectly bear a pro rata share of the fees and expenses of any acquired funds in which they invest, such as short-term investments in mutual funds and investments in closed-end funds. Such indirect expenses are not included in any of the reported expense ratios.

The Adviser has entered into sub advisory contracts with independent investment advisory firms for each Fund to provide daily investment management services. The sub advisory fees are based on each subadviser’s proportional net assets it currently manages within each Fund and are paid directly by the Adviser.

The sub advisory fee for the Clearwater Growth Fund, payable to Parametric, Heartland, Osterweis and Knightsbridge, is equal to an annual rate of 0.14% of the portion of net assets managed, an annual rate of 0.65% of the portion of net assets managed, an annual rate of 0.75% of the portion of net assets managed, and an annual rate of 0.75% on the first $20 million of the portion of net assets managed, decreasing to 0.50% of the portion of net assets managed in excess of $20 million, respectively.

The sub advisory fee for the Clearwater Small Cap Fund, payable to Kennedy, is equal to an annual rate of 0.85% on the first $50 million of the portion of net assets managed, decreasing to 0.80% of the portion of net assets managed in excess of $50 million. The sub advisory fee payable to Keeley is equal to an annual rate of 1.00% on the first $2 million of the portion of net assets managed, decreasing to 0.85% on the next $8 million of the portion of net assets managed, and further decreasing to 0.70% of the portion of net assets managed in excess of $10 million.

The sub advisory fee for the Clearwater Tax-Exempt Bond Fund, payable to Sit, is equal to an annual rate of 0.40% on the first $20 million in net assets, decreasing to 0.20% of net assets in excess of $75 million.

25 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

The sub advisory fee for the Clearwater International Fund, payable to Parametric, is equal to an annual rate of 0.15% of the portion of net assets managed. The sub advisory fee payable to AXA Rosenberg is equal to an annual rate of 0.85% on the first $50 million of the portion of net assets managed, decreasing to 0.75% on the next $50 million of the portion of net assets managed, and further decreasing to 0.65% of the portion of net assets managed in excess of $100 million. The sub advisory fee payable to Artisan Partners is equal to an annual rate of 0.80% on the first $50 million of the portion of net assets managed, decreasing to 0.60% on the next $50 million of the portion of net assets managed, and further decreasing to 0.50% of the portion of net assets managed in excess of $100 million. The sub advisory fee payable to Eagle is equal to an annual rate of 0.60% on the first $100 million of the portion of net assets managed, decreasing to 0.50% of the portion of net assets managed in excess of $100 million.

The Adviser has also engaged FCI as a sub-adviser for each Fund. FCI regularly provides the Funds with various investment-related services, including investment strategy advice, manager recommendations and related duties as requested by the Adviser. FCI also provides certain services related to due diligence, performance reporting, compliance, and other administrative functions, which support the investment management services and subadviser oversight services provided to the Trust by the Adviser. For its services, FCI is compensated with a subadvisory fee payable by the Adviser of 0.20% of each Fund’s net assets, paid on a quarterly basis. FCI is compensated out of the fees the Adviser receives from the respective Funds. FCI has agreed to waive the difference between the amount calculated under the subadvisory fee schedule and an amount determined by multiplying the total number of hours worked by FCI in providing services under the subadvisory agreement by an hourly rate that is approved by the Adviser. The effect of this waiver agreement is that fees paid to FCI under the subadvisory agreement would approximate the fees previously paid to FCI under a consulting agreement previously in effect between the Adviser and FCI.

(8) Derivative Instruments

Information concerning the types of derivatives in which the International Fund invests, the objectives for using them and their related risks can be found in Note 2.

Below are the types of derivatives in the International Fund by location as presented in the Statements of Assets and Liabilities as of December 31, 2011:

	ASSETS			LIABILITIES
Derivative Type	Statements of Assets and Liabilities Location	Value		Statements of Assets and Liabilities Location	Value		Counterparty
Forward foreign currency exchange contracts	Unrealized appreciation on forward foreign currency exchange contracts	$	10,247	Unrealized depreciation on forward foreign currency exchange contracts	$	8,432	CSFB Global Deutsche Bank Northern Trust

26 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2011

The following tables set forth by primary risk exposure the International Fund’s realized gain (loss) on investments and foreign currencies and net increase (decrease) in appreciation/depreciation by type of derivative contract for the year ended December 31, 2011:

Derivative Type	Statements of Operations Location	Value			Derivative Type	Statements of Operations Location	Value
Forward foreign currency exchange contracts	Net realized loss on forward foreign currency exchange contracts	$	(247,124	)	Forward foreign currency exchange contracts	Net decrease in appreciation on forward foreign currency exchange contracts	$	(3,232)

Derivative transactions are measured in terms of the notional amount. The following table presents, for the International Fund, the number of transactions and average notional amounts, which is indicative of the volume of derivative activity for the year ended December 31, 2011.

Foreign Exchange Contracts
Number of Transactions		Average Notional Amount
	1,573	$	1,139,153

(9) Subsequent Events

Management has evaluated subsequent events relating to the Funds through the date the financial statements were available to be issued, and has concluded there are no such events or transactions requiring financial statement disclosure and/or adjustments to the financial statements.

27 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Common Stocks:
Consumer Discretionary:
	2,300	ABERCROMBIE & FITCH CO., CLASS A	$	50,218		112,332
	1,500	ADVANCE AUTO PARTS, INC.		53,558		104,444
	6,150	AMAZON.COM, INC.(b)		274,722		1,064,565
	1,600	AMC NETWORKS, INC., CLASS A(b)		25,785		60,128
	3,300	AMERICAN EAGLE OUTFITTERS, INC.		33,099		50,457
	20,800	AMERICAN GREETINGS CORP., CLASS A		458,365		260,208
	1,900	APOLLO GROUP, INC., CLASS A(b)		80,303		102,353
	1,600	AUTOLIV, INC.(c)		44,874		85,584
	500	AUTOZONE, INC.(b)		32,038		162,485
	4,575	BED BATH & BEYOND, INC.(b)		120,780		265,213
	4,800	BEST BUY CO., INC.		84,882		112,176
	1,400	BIG LOTS, INC.(b)		15,477		52,864
	2,200	BORGWARNER, INC.(b)		51,799		140,228
	750	BRINKER INTERNATIONAL, INC.		10,084		20,070
	6,400	CABLEVISION SYSTEMS CORP. (NEW YORK GROUP), CLASS A		60,070		91,008
	4,168	CARMAX, INC.(b)		50,984		127,041
	7,000	CARNIVAL CORP.		209,545		228,480
	6,043	CBS CORP., CLASS B (NON VOTING)		52,350		164,007
	600	CHARTER COMMUNICATIONS, INC., CLASS A(b)		30,036		34,164
	600	CHICO’S FAS, INC.		5,619		6,684
	62,535	CINEMARK HOLDINGS, INC.		1,207,504		1,156,272
	9,400	CLEAR CHANNEL OUTDOOR HOLDINGS, INC., CLASS A(b)		75,051		117,970
	5,000	COACH, INC.		19,161		305,200
	38,500	COMCAST CORP., CLASS A		607,791		912,835
	4,600	D.R. HORTON, INC.		22,057		58,006
	2,300	DARDEN RESTAURANTS, INC.		47,909		104,834
	1,500	DICK’S SPORTING GOODS, INC.		24,802		55,320
	14,821	DIRECTV, CLASS A(b)		174,284		633,746
	900	DISCOVERY COMMUNICATIONS, INC., CLASS A(b)		37,611		36,873
	1,600	DISH NETWORK CORP., CLASS A		44,672		45,568
	3,350	DOLLAR TREE, INC.(b)		61,517		278,418
	1,300	DREAMWORKS ANIMATION SKG, INC., CLASS A(b)		25,298		21,574
	2,210	EXPEDIA, INC.		38,086		64,134
	500	FAMILY DOLLAR STORES, INC.		12,652		28,830
	3,000	FOOT LOCKER, INC.		40,394		71,520
	58,863	FORD MOTOR CO.(b)		323,193		633,366
	300	FOSSIL, INC.(b)		29,187		23,808
	4,600	GAMESTOP CORP., CLASS A(b)		34,643		110,998
	5,700	GANNETT CO., INC.		51,200		76,209
	4,100	GAP (THE), INC.		58,946		76,055
	3,700	GARMIN LTD.(c)		82,077		147,297
	1,100	GENERAL MOTORS CO.(b)		25,300		22,297
	7,500	GENTEX CORP.		106,860		221,925
	3,450	GENUINE PARTS CO.		102,424		211,140
	11,500	H&R BLOCK, INC.		120,130		187,795
	500	HANESBRANDS, INC.(b)		10,750		10,930
	6,750	HARLEY-DAVIDSON, INC.		39,547		262,372
	4,300	HARMAN INTERNATIONAL INDUSTRIES, INC.		74,798		163,572
	400	HASBRO, INC.		10,206		12,756
	33,825	HOME DEPOT (THE), INC.		22,060		1,422,003
	4,700	INTERNATIONAL GAME TECHNOLOGY		62,322		80,840
	15,600	INTERPUBLIC GROUP OF COS., INC.		40,950		151,788
	1,300	ITT EDUCATIONAL SERVICES, INC.(b)		52,038		73,957
	800	J.C. PENNEY CO., INC.		20,608		28,120
	1,400	JARDEN CORP.		25,277		41,832
	40,800	JOHNSON CONTROLS, INC.		1,149,341		1,275,408
	7,750	KOHL’S CORP.		86,000		382,462
	4,200	LAMAR ADVERTISING CO., CLASS A(b)		55,664		115,500
	6,338	LAS VEGAS SANDS CORP.(b)		66,556		270,823
	3,500	LEAR CORP.		148,257		139,300
	1,300	LEGGETT & PLATT, INC.		25,422		29,952
	2,900	LENNAR CORP., CLASS A		38,266		56,985
	5,800	LIBERTY GLOBAL, INC., CLASS A(b)		103,484		237,974
	9,800	LIBERTY INTERACTIVE CORP., CLASS A(b)		30,625		158,907
	5,032	LIBERTY MEDIA CORP. - LIBERTY CAPITAL, CLASS A(b)		30,073		392,748

See accompanying notes to the financial statements. 28 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Consumer Discretionary (Cont’d):
	6,190	LIMITED BRANDS, INC.	$	70,745		249,766
	1,000	LKQ CORP.(b)		24,950		30,080
	9,100	LOWE’S COS., INC.		212,741		230,958
	5,000	MACY’S, INC.		81,374		160,900
	69,000	MADISON SQUARE GARDEN (THE) CO., CLASS A(b)		1,572,579		1,976,160
	62,715	MARKS & SPENCER GROUP PLC ADR(c)(d)		731,006		597,047
	4,969	MARRIOTT INTERNATIONAL, INC., CLASS A		60,013		144,946
	75,496	MARRIOTT VACATIONS WORLDWIDE CORP.(b)		1,321,371		1,295,511
	4,200	MATTEL, INC.		75,213		116,592
	16,400	MCDONALD’S CORP.		370,761		1,645,412
	4,700	MCGRAW-HILL (THE) COS., INC.		121,958		211,359
	10,000	MGM RESORTS INTERNATIONAL(b)		94,040		104,300
	600	MOHAWK INDUSTRIES, INC.(b)		26,796		35,910
	1,400	MORNINGSTAR, INC.		57,577		83,230
	2,200	NEWELL RUBBERMAID, INC.		26,950		35,530
	34,000	NEWS CORP., CLASS A		354,723		606,560
	4,400	NIKE, INC., CLASS B		126,358		424,028
	4,300	NORDSTROM, INC.		45,232		213,753
	100	NVR, INC.(b)		51,542		68,600
	3,095	OMNICOM GROUP, INC.		87,717		137,975
	2,300	O’REILLY AUTOMOTIVE, INC.(b)		69,868		183,885
	1,500	PANERA BREAD CO., CLASS A(b)		69,668		212,175
	2,600	PETSMART, INC.		55,966		133,354
	600	PRICELINE.COM, INC.(b)		55,053		280,626
	22,900	PULTE GROUP, INC.(b)		95,493		144,499
	700	PVH CORP.		26,254		49,343
	1,700	RADIOSHACK CORP.		20,714		16,507
	1,500	RALPH LAUREN CORP.		31,320		207,120
	3,000	REGAL ENTERTAINMENT GROUP, CLASS A		30,735		35,820
	4,600	ROSS STORES, INC.		36,395		218,638
	1,800	ROYAL CARIBBEAN CRUISES LTD.		22,599		44,586
	600	SCRIPPS NETWORKS INTERACTIVE, INC., CLASS A		21,337		25,452
	12,600	SERVICE CORP. INTERNATIONAL		90,438		134,190
	2,600	SIGNET JEWELERS LTD.(c)		52,469		114,296
	9,450	STAPLES, INC.		119,696		131,260
	15,750	STARBUCKS CORP.		204,658		724,658
	1,810	STARWOOD HOTELS & RESORTS WORLDWIDE, INC.		59,620		86,826
	12,200	TARGET CORP.		353,659		624,884
	900	TESLA MOTORS, INC.(b)		23,418		25,704
	3,600	THOMSON REUTERS CORP.		102,096		96,012
	1,900	THOR INDUSTRIES, INC.		22,316		52,117
	4,200	TIFFANY & CO.		122,192		278,292
	6,279	TIME WARNER CABLE, INC.		208,890		399,156
	21,033	TIME WARNER, INC.		476,695		760,133
	5,047	TJX COS., INC.		86,033		325,784
	2,210	TRIPADVISOR, INC.(b)		42,908		55,714
	2,800	TRW AUTOMOTIVE HOLDINGS CORP.(b)		87,856		91,280
	700	TUPPERWARE BRANDS CORP.		39,473		39,179
	2,127	URBAN OUTFITTERS, INC.(b)		37,857		58,620
	1,700	VF CORP.		87,065		215,883
	8,457	VIACOM, INC., CLASS B		218,419		384,033
	5,300	VIRGIN MEDIA, INC.		78,460		113,314
	29,960	WALT DISNEY (THE) CO.		587,935		1,123,500
	2,300	WHIRLPOOL CORP.		98,184		109,135
	1,100	WILLIAMS-SONOMA, INC.		41,492		42,350
	51,400	WMS INDUSTRIES, INC.(b)		985,422		1,054,728
	5,475	WYNDHAM WORLDWIDE CORP.		24,500		207,119
	1,600	WYNN RESORTS LTD.		42,372		176,784
	9,016	YUM! BRANDS, INC.		78,831		532,034
				17,631,583		32,032,317		9.64%
Consumer Staples:
	30,100	ALTRIA GROUP, INC.		137,687		892,465
	41,550	ARCHER-DANIELS-MIDLAND CO.		1,175,362		1,188,330
	5,062	AVON PRODUCTS, INC.		99,766		88,433
	4,300	BEAM, INC.		115,443		220,289
	1,944	BROWN-FORMAN CORP., CLASS B		57,343		156,511

See accompanying notes to the financial statements. 29 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Consumer Staples (Cont’d):
	15,500	BUNGE LTD.	$	953,676		886,600
	600	CAMPBELL SOUP CO.		16,020		19,944
	4,000	CHURCH & DWIGHT CO., INC.		100,310		183,040
	3,000	CLOROX (THE) CO.		154,515		199,680
	32,261	COCA-COLA (THE) CO.		992,260		2,257,302
	2,300	COCA-COLA ENTERPRISES, INC.		39,664		59,294
	7,390	COLGATE-PALMOLIVE CO.		422,681		682,762
	6,000	CONAGRA FOODS, INC.		123,690		158,400
	4,600	CONSTELLATION BRANDS, INC., CLASS A(b)		63,227		95,082
	1,800	CORN PRODUCTS INTERNATIONAL, INC.		52,636		94,662
	35,535	COSAN LTD., CLASS A(c)		490,821		389,464
	7,800	COSTCO WHOLESALE CORP.		237,671		649,896
	36,622	CVS CAREMARK CORP.		787,259		1,493,445
	14,590	DIAGEO PLC ADR(c)(d)		1,054,739		1,275,458
	6,000	DR PEPPER SNAPPLE GROUP, INC.		125,060		236,880
	397	ENERGIZER HOLDINGS, INC.(b)		20,533		30,760
	1,867	ESTEE LAUDER (THE) COS., INC., CLASS A		70,943		209,702
	1,800	FLOWERS FOODS, INC.		25,434		34,164
	12,400	GENERAL MILLS, INC.		277,056		501,084
	2,400	GREEN MOUNTAIN COFFEE ROASTERS, INC.(b)		44,948		107,640
	3,000	H.J. HEINZ CO.		93,909		162,120
	900	HANSEN NATURAL CORP.(b)		30,956		82,926
	3,800	HERBALIFE LTD.(c)		52,204		196,346
	1,700	HERSHEY (THE) CO.		62,742		105,026
	2,400	HORMEL FOODS CORP.		43,206		70,296
	1,600	J.M. SMUCKER (THE) CO.		64,617		125,072
	2,300	KELLOGG CO.		99,285		116,311
	4,050	KIMBERLY-CLARK CORP.		202,324		297,918
	50,838	KRAFT FOODS, INC., CLASS A		1,178,532		1,899,308
	13,400	KROGER (THE) CO.		228,089		324,548
	1,374	LORILLARD, INC.		34,727		156,636
	800	MCCORMICK & CO., INC. (NON VOTING)		24,815		40,336
	2,200	MEAD JOHNSON NUTRITION CO.		103,422		151,206
	1,800	MOLSON COORS BREWING CO., CLASS B		54,437		78,372
	27,500	PEPSICO, INC.		1,031,385		1,824,625
	33,532	PHILIP MORRIS INTERNATIONAL, INC.		336,856		2,631,591
	49,560	PROCTER & GAMBLE (THE) CO.		882,493		3,306,148
	400	RALCORP HOLDINGS, INC.(b)		30,388		34,200
	3,000	REYNOLDS AMERICAN, INC.		29,474		124,260
	96,194	SAFEWAY, INC.		2,026,334		2,023,922
	13,350	SARA LEE CORP.		110,338		252,582
	5,700	SMITHFIELD FOODS, INC.(b)		106,346		138,396
	7,900	SYSCO CORP.		121,024		231,707
	7,427	TYSON FOODS, INC., CLASS A		78,124		153,293
	45,420	UNILEVER N.V. (REGISTERED)(c)		1,366,228		1,561,085
	20,150	WALGREEN CO.		231,445		666,159
	24,596	WAL-MART STORES, INC.		1,046,575		1,469,857
	4,400	WHOLE FOODS MARKET, INC.		116,393		306,152
				17,425,412		30,641,685		9.22%
Energy:
	1,142	ALPHA NATURAL RESOURCES, INC.(b)		26,874		23,331
	9,446	ANADARKO PETROLEUM CORP.		319,802		721,013
	11,386	APACHE CORP.		711,832		1,031,344
	6,400	ARCH COAL, INC.		68,943		92,864
	1,700	ATWOOD OCEANICS, INC.(b)		51,221		67,643
	5,000	BAKER HUGHES, INC.		219,568		243,200
	58,000	BP PLC ADR(c)(d)		2,621,492		2,478,920
	1,504	CABOT OIL & GAS CORP.		38,739		114,154
	4,800	CAMERON INTERNATIONAL CORP.(b)		124,988		236,112
	10,400	CHESAPEAKE ENERGY CORP.		207,021		231,816
	34,095	CHEVRON CORP.		1,499,394		3,627,708
	400	CIMAREX ENERGY CO.		24,008		24,760
	42,400	CLOUD PEAK ENERGY, INC.(b)		950,791		819,168
	7,200	COBALT INTERNATIONAL ENERGY, INC.(b)		63,000		111,744
	1,700	CONCHO RESOURCES, INC.(b)		49,632		159,375
	27,744	CONOCOPHILLIPS		706,207		2,021,705
	5,431	CONSOL ENERGY, INC.		148,332		199,318

See accompanying notes to the financial statements. 30 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Energy (Cont’d):
	1,000	CONTINENTAL RESOURCES, INC.(b)	$	20,765		66,710
	9,300	DENBURY RESOURCES, INC.(b)		88,950		140,430
	47,775	DEVON ENERGY CORP.		3,196,708		2,962,050
	3,000	DRESSER-RAND GROUP, INC.(b)		98,595		149,730
	17,400	EL PASO CORP.		139,789		462,318
	21,072	ENSCO PLC ADR(c)(d)		1,021,092		988,698
	24,005	ENTERPRISE PRODUCTS PARTNERS L.P.		998,596		1,113,352
	4,800	EOG RESOURCES, INC.		62,765		472,848
	4,000	EQT CORP.		132,900		219,160
	82,251	EXXON MOBIL CORP.		3,236,727		6,971,595
	2,400	FMC TECHNOLOGIES, INC.(b)		33,690		125,352
	4,800	FOREST OIL CORP.(b)		54,895		65,040
	15,158	HALLIBURTON CO.		274,762		523,103
	3,100	HELMERICH & PAYNE, INC.		39,003		180,916
	1,000	HESS CORP.		57,839		56,800
	4,000	HOLLYFRONTIER CORP.		52,098		93,600
	43,395	KINDER MORGAN, INC.		1,344,193		1,396,017
	2,939	LONE PINE RESOURCES, INC.(b)(c)		21,418		20,602
	21,250	MAGELLAN MIDSTREAM PARTNERS L.P.		1,186,723		1,463,700
	36,861	MARATHON OIL CORP.		838,219		1,078,921
	23,845	MARATHON PETROLEUM CORP.		825,453		793,800
	164,500	MCDERMOTT INTERNATIONAL, INC.(b)		1,874,601		1,893,395
	2,400	MURPHY OIL CORP.		32,055		133,776
	4,600	NABORS INDUSTRIES LTD.(b)(c)		65,274		79,764
	8,722	NATIONAL OILWELL VARCO, INC.		214,854		593,009
	1,542	NEWFIELD EXPLORATION CO.(b)		62,333		58,180
	4,200	NOBLE ENERGY, INC.		158,332		396,438
	21,940	OCCIDENTAL PETROLEUM CORP.		576,239		2,055,778
	3,400	OCEANEERING INTERNATIONAL, INC.		87,014		156,842
	1,300	PATTERSON-UTI ENERGY, INC.		24,310		25,974
	3,500	PEABODY ENERGY CORP.		69,937		115,885
	3,200	PIONEER NATURAL RESOURCES CO.		48,507		286,336
	76,100	PLAINS EXPLORATION & PRODUCTION CO.(b)		2,668,000		2,794,392
	56,000	QEP RESOURCES, INC.		1,966,765		1,640,800
	10,700	QUICKSILVER RESOURCES, INC.(b)		91,699		71,797
	3,700	RANGE RESOURCES CORP.		128,866		229,178
	700	ROWAN COS., INC.(b)		19,887		21,231
	12,200	SANDRIDGE ENERGY, INC.(b)		69,540		99,552
	19,100	SCHLUMBERGER LTD.		491,562		1,304,721
	9,300	SOUTHWESTERN ENERGY CO.(b)		163,644		297,042
	10,954	SPECTRA ENERGY CORP.		155,906		336,836
	2,400	SUNOCO, INC.		50,440		98,448
	900	SUPERIOR ENERGY SERVICES, INC.(b)		27,135		25,596
	1,200	TESORO CORP.(b)		24,660		28,032
	23,075	TIDEWATER, INC.		1,150,431		1,137,597
	2,400	ULTRA PETROLEUM CORP.(b)		74,376		71,112
	12,110	VALERO ENERGY CORP.		130,822		254,915
	2,600	WHITING PETROLEUM CORP.(b)		73,760		121,394
	7,200	WILLIAMS (THE) COS., INC.		186,912		237,744
				32,244,885		46,114,681		13.88%
Financials:
	6,000	ACE LTD.(c)		317,873		420,720
	1,100	AFFILIATED MANAGERS GROUP, INC.(b)		73,654		105,545
	9,850	AFLAC, INC.		262,100		426,111
	2,100	ALEXANDRIA REAL ESTATE EQUITIES, INC.		111,601		144,837
	2,700	ALLIED WORLD ASSURANCE CO. HOLDINGS A.G.(c)		86,630		169,911
	8,300	ALLSTATE (THE) CORP.		197,623		227,503
	18,333	AMERICAN EXPRESS CO.		546,904		864,767
	1,800	AMERICAN FINANCIAL GROUP, INC.		29,745		66,402
	9,500	AMERICAN INTERNATIONAL GROUP, INC.(b)		233,988		220,400
	22,580	AMERICAN INTERNATIONAL GROUP, INC., (FRACTIONAL SHARES)(b)		-		-
	5,191	AMERIPRISE FINANCIAL, INC.		160,907		257,681
	4,900	ANNALY CAPITAL MANAGEMENT, INC.		78,180		78,204
	4,748	AON CORP.		110,582		222,206
	3,628	APARTMENT INVESTMENT & MANAGEMENT CO., CLASS A		39,421		83,117
	4,800	ARCH CAPITAL GROUP LTD.(b)(c)		101,982		178,704

See accompanying notes to the financial statements. 31 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Financials (Cont’d):
	1,600	ARTHUR J. GALLAGHER & CO.	$	34,040		53,504
	2,500	ASSURANT, INC.		60,538		102,650
	734	AVALONBAY COMMUNITIES, INC.		31,138		95,860
	900	AXIS CAPITAL HOLDINGS LTD.(c)		23,391		28,764
	440,300	BANK OF AMERICA CORP.		6,039,129		2,448,068
	456	BANK OF MONTREAL(c)		23,826		24,993
	7,300	BANK OF NEW YORK MELLON (THE) CORP.		150,088		145,343
	53,622	BB&T CORP.		1,299,931		1,349,666
	24,500	BERKSHIRE HATHAWAY, INC., CLASS B(b)		1,982,130		1,869,350
	3,388	BOSTON PROPERTIES, INC.		171,468		337,445
	1,100	BRE PROPERTIES, INC.		25,168		55,528
	900	CAMDEN PROPERTY TRUST		24,065		56,016
	32,547	CAPITAL ONE FINANCIAL CORP.		1,390,841		1,376,413
	16,000	CAPITALSOURCE, INC.(b)		78,410		107,200
	1,000	CBOE HOLDINGS, INC.		23,780		25,860
	21,400	CHARLES SCHWAB (THE) CORP.		186,608		240,964
	79,100	CHIMERA INVESTMENT CORP.		239,978		198,541
	2,700	CHUBB (THE) CORP.		86,607		186,894
	1,400	CIT GROUP, INC.(b)		49,108		48,818
	119,381	CITIGROUP, INC.		4,642,288		3,140,914
	2,000	CITY NATIONAL CORP.		75,538		88,360
	1,373	CME GROUP, INC.		311,424		334,559
	1,100	CNA FINANCIAL CORP.		25,102		29,425
	6,700	COMMONWEALTH REIT		127,516		111,488
	400	DIGITAL REALTY TRUST, INC.		15,650		26,668
	16,287	DISCOVER FINANCIAL SERVICES		233,079		390,888
	5,200	DOUGLAS EMMETT, INC.(b)		63,182		94,848
	900	ENDURANCE SPECIALTY HOLDINGS LTD.(c)		25,106		34,425
	5,416	EQUITY RESIDENTIAL		174,162		308,874
	400	ERIE INDEMNITY CO., CLASS A		26,912		31,264
	900	FEDERAL REALTY INVESTMENT TRUST		48,326		81,675
	5,100	FEDERATED INVESTORS, INC., CLASS B		97,600		77,265
	1,600	FIDELITY NATIONAL FINANCIAL, INC., CLASS A		24,512		25,488
	25,300	FIFTH THIRD BANCORP		220,963		321,816
	400	FIRST CITIZENS BANCSHARES, INC., CLASS A		57,523		69,996
	30,500	FIRST HORIZON NATIONAL CORP.		193,065		244,000
	95,534	FIRST HORIZON NATIONAL CORP. (FRACTIONAL SHARES)(b)		-		-
	47,200	FIRST INTERSTATE BANCSYSTEM, INC.		680,988		615,016
	28,205	FIRST REPUBLIC BANK(b)		790,953		863,355
	3,359	FRANKLIN RESOURCES, INC.		189,834		322,666
	9,000	GOLDMAN SACHS GROUP (THE), INC.		771,906		813,870
	1,400	GREEN DOT CORP., CLASS A(b)		44,569		43,708
	3,500	GREENHILL & CO., INC.		106,120		127,295
	700	HANOVER INSURANCE GROUP (THE), INC.		24,899		24,465
	2,500	HARTFORD FINANCIAL SERVICES GROUP, INC.		35,288		40,625
	1,000	HCC INSURANCE HOLDINGS, INC.		24,155		27,500
	7,100	HCP, INC.		108,388		294,153
	2,000	HEALTH CARE REIT, INC.		90,641		109,060
	1,800	HOSPITALITY PROPERTIES TRUST		23,967		41,364
	16,122	HOST HOTELS & RESORTS, INC.		138,445		238,122
	678	HOWARD HUGHES (THE) CORP.(b)		20,502		29,947
	35,000	HUNTINGTON BANCSHARES, INC.		169,770		192,150
	112,550	INLAND REAL ESTATE CORP.		951,420		856,506
	1,300	INTERCONTINENTALEXCHANGE, INC.(b)		157,514		156,715
	12,700	INVESCO LTD.		205,676		255,143
	33,700	JANUS CAPITAL GROUP, INC.		222,792		212,647
	700	JONES LANG LASALLE, INC.		39,950		42,882
	56,346	JPMORGAN CHASE & CO.		1,370,888		1,873,504
	5,900	KEYCORP		30,060		45,371
	8,201	KIMCO REALTY CORP.		101,601		133,184
	4,852	LEGG MASON, INC.		82,631		116,691
	1,100	LIBERTY PROPERTY TRUST		24,364		33,968
	6,000	LOEWS CORP.		131,444		225,900
	2,600	LPL INVESTMENT HOLDINGS, INC.(b)		67,938		79,404
	2,000	M&T BANK CORP.		145,114		152,680
	5,123	MACERICH (THE) CO.		121,389		259,224

See accompanying notes to the financial statements. 32 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Financials (Cont’d):
	300	MARKEL CORP.(b)	$	101,683		124,401
	5,678	MARSH & MCLENNAN COS., INC.		135,775		179,538
	7,800	MBIA, INC.(b)		38,883		90,402
	1,300	MERCURY GENERAL CORP.		38,018		59,306
	7,900	METLIFE, INC.		230,694		246,322
	8,200	MORGAN STANLEY		130,626		124,066
	2,400	MSCI, INC., CLASS A(b)		68,930		79,032
	4,500	NASDAQ OMX GROUP (THE), INC.(b)		107,280		110,295
	11,049	NEW YORK COMMUNITY BANCORP, INC.		128,782		136,676
	102	NORTHERN TRUST CORP.		3,787		4,045
	2,200	PARTNERRE LTD.(c)		119,028		141,262
	4,385	PLUM CREEK TIMBER CO., INC.		105,969		160,316
	24,200	PNC FINANCIAL SERVICES GROUP, INC.		1,208,454		1,395,614
	7,100	PRINCIPAL FINANCIAL GROUP, INC.		166,208		174,660
	6,048	PROGRESSIVE (THE) CORP.		80,691		117,996
	10,169	PROLOGIS, INC.		257,434		290,732
	2,200	PROTECTIVE LIFE CORP.		24,849		49,632
	8,500	PRUDENTIAL FINANCIAL, INC.		257,378		426,020
	1,091	PUBLIC STORAGE		67,691		146,696
	25,275	RAYMOND JAMES FINANCIAL, INC.		780,707		782,514
	6,972	RAYONIER, INC.		104,763		311,161
	2,700	REALTY INCOME CORP.		63,518		94,392
	3,900	REGENCY CENTERS CORP.		93,198		146,718
	9,099	REGIONS FINANCIAL CORP.		36,947		39,126
	2,200	REINSURANCE GROUP OF AMERICA, INC.		105,732		114,950
	2,900	RENAISSANCERE HOLDINGS LTD.(c)		136,230		215,673
	7,500	SEI INVESTMENTS CO.		108,537		130,125
	1,300	SENIOR HOUSING PROPERTIES TRUST		20,787		29,172
	3,595	SIMON PROPERTY GROUP, INC.		157,583		463,540
	1,900	SL GREEN REALTY CORP.		58,204		126,616
	12,600	SLM CORP.		134,787		168,840
	1,600	ST. JOE (THE) CO.(b)		25,024		23,456
	1,400	STATE STREET CORP.		57,274		56,434
	6,634	SUNTRUST BANKS, INC.		92,816		117,422
	52,395	SYMETRA FINANCIAL CORP.		647,597		475,223
	6,349	T. ROWE PRICE GROUP, INC.		125,884		361,576
	2,100	TAUBMAN CENTERS, INC.		61,286		130,410
	12,000	TCF FINANCIAL CORP.		111,496		123,840
	3,266	TD AMERITRADE HOLDING CORP.		45,984		51,113
	5,100	TORCHMARK CORP.		138,962		221,289
	23,640	TRANSATLANTIC HOLDINGS, INC.		1,243,761		1,293,817
	10,688	TRAVELERS (THE) COS., INC.		378,568		632,409
	30,785	U.S. BANCORP		618,521		832,734
	2,400	UDR, INC.		24,876		60,240
	37,200	UNUM GROUP		795,048		783,804
	1,100	VALIDUS HOLDINGS LTD.(c)		23,556		34,650
	1,800	VENTAS, INC.		73,053		99,234
	1,300	VORNADO REALTY TRUST		76,003		99,918
	1,106	W.R. BERKLEY CORP.		29,276		38,035
	2,900	WADDELL & REED FINANCIAL, INC., CLASS A		75,336		71,833
	1,800	WASHINGTON FEDERAL, INC.		23,535		25,182
	1,900	WEINGARTEN REALTY INVESTORS		25,128		41,458
	77,800	WELLS FARGO & CO.		957,533		2,144,168
	4,900	XL GROUP PLC(c)		95,648		96,873
				38,325,906		40,352,009		12.14%
Health Care:
	47,335	ABBOTT LABORATORIES		1,974,208		2,661,647
	8,703	AETNA, INC.		122,419		367,180
	3,000	ALEXION PHARMACEUTICALS, INC.(b)		58,088		214,500
	5,507	ALLERGAN, INC.		201,259		483,184
	7,200	AMERISOURCEBERGEN CORP.		115,968		267,768
	21,000	AMGEN, INC.		85,551		1,348,410
	4,100	BAXTER INTERNATIONAL, INC.		218,728		202,868
	20,315	BAYER A.G. ADR(c)(d)		1,463,805		1,296,097
	2,500	BECTON, DICKINSON AND CO.		123,650		186,800
	6,550	BIOGEN IDEC, INC.(b)		82,841		720,828
	187,900	BOSTON SCIENTIFIC CORP.(b)		1,272,645		1,003,386

See accompanying notes to the financial statements. 33 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Health Care (Cont’d):
	18,700	BRISTOL-MYERS SQUIBB CO.	$	432,823		658,988
	2,000	BRUKER CORP.(b)		28,160		24,840
	1,700	C.R. BARD, INC.		111,570		145,350
	3,400	CARDINAL HEALTH, INC.		102,635		138,074
	84,100	CAREFUSION CORP.(b)		2,085,997		2,136,981
	6,436	CELGENE CORP.(b)		146,839		435,074
	1,800	CERNER CORP.(b)		40,604		110,250
	5,700	CIGNA CORP.		89,680		239,400
	3,400	COMMUNITY HEALTH SYSTEMS, INC.(b)		58,650		59,330
	23,300	COVIDIEN PLC(c)		998,647		1,048,733
	1,425	DAVITA, INC.(b)		21,812		108,029
	2,500	DENDREON CORP.(b)		24,700		19,000
	3,700	DENTSPLY INTERNATIONAL, INC.		102,582		129,463
	3,800	EDWARDS LIFESCIENCES CORP.(b)		118,152		268,660
	17,000	ELI LILLY & CO.		582,850		706,520
	9,100	EXPRESS SCRIPTS, INC.(b)		173,782		406,679
	800	FOREST LABORATORIES, INC.(b)		25,000		24,208
	20,260	GEN-PROBE, INC.(b)		1,079,249		1,197,771
	14,260	GILEAD SCIENCES, INC.(b)		231,726		583,662
	6,900	HEALTH MANAGEMENT ASSOCIATES, INC., CLASS A(b)		44,746		50,853
	57,235	HEALTHSOUTH CORP.(b)		1,027,752		1,011,342
	1,900	HENRY SCHEIN, INC.(b)		86,166		122,417
	1,300	HILL-ROM HOLDINGS, INC.		38,228		43,797
	7,208	HOLOGIC, INC.(b)		102,880		126,212
	2,005	HOSPIRA, INC.(b)		50,661		60,892
	1,800	HUMAN GENOME SCIENCES, INC.(b)		25,704		13,302
	3,900	HUMANA, INC.		39,107		341,679
	1,400	IDEXX LABORATORIES, INC.(b)		60,410		107,744
	3,700	ILLUMINA, INC.(b)		158,027		112,776
	700	INTUITIVE SURGICAL, INC.(b)		165,982		324,107
	63,701	JOHNSON & JOHNSON		2,862,186		4,177,512
	800	LABORATORY CORP. OF AMERICA HOLDINGS(b)		18,788		68,776
	1,373	LIFE TECHNOLOGIES CORP.(b)		35,179		53,423
	825	LINCARE HOLDINGS, INC.		16,059		21,211
	5,700	MCKESSON CORP.		202,596		444,087
	9,756	MEDCO HEALTH SOLUTIONS, INC.(b)		137,776		545,360
	9,400	MEDTRONIC, INC.		318,841		359,550
	48,078	MERCK & CO., INC.		1,123,592		1,812,540
	1,300	METTLER-TOLEDO INTERNATIONAL, INC.(b)		87,484		192,023
	119,600	MYLAN, INC.(b)		2,314,946		2,566,616
	15,335	NOVARTIS A.G. ADR(c)(d)		923,592		876,702
	1,600	PATTERSON COS., INC.		29,864		47,232
	3,400	PERKINELMER, INC.		53,706		68,000
	2,900	PERRIGO CO.		109,545		282,170
	165,325	PFIZER, INC.		1,355,390		3,577,633
	400	PHARMASSET, INC.(b)		32,036		51,280
	20,965	QUEST DIAGNOSTICS, INC.		1,109,957		1,217,228
	4,000	RESMED, INC.(b)		81,990		101,600
	900	SIRONA DENTAL SYSTEMS, INC.(b)		38,745		39,636
	7,839	ST. JUDE MEDICAL, INC.		226,619		268,878
	7,200	STRYKER CORP.		119,192		357,912
	500	SXC HEALTH SOLUTIONS CORP.(b)		27,765		28,240
	16,775	TELEFLEX, INC.		856,456		1,028,140
	7,100	TENET HEALTHCARE CORP.(b)		31,133		36,423
	7,400	THERMO FISHER SCIENTIFIC, INC.(b)		156,535		332,778
	17,202	UNITEDHEALTH GROUP, INC.		273,316		871,797
	2,036	UNIVERSAL HEALTH SERVICES, INC., CLASS B		38,822		79,119
	28,140	VALEANT PHARMACEUTICALS INTERNATIONAL, INC.(b)(c)		791,331		1,313,856
	5,000	VARIAN MEDICAL SYSTEMS, INC.(b)		184,300		335,650
	3,000	VERTEX PHARMACEUTICALS, INC.(b)		74,805		99,630
	1,900	WARNER CHILCOTT PLC, CLASS A(b)(c)		29,963		28,747
	2,600	WATERS CORP.(b)		60,997		192,530
	3,175	WATSON PHARMACEUTICALS, INC.(b)		79,361		191,580
	9,249	WELLPOINT, INC.		325,438		612,746
	20,374	ZIMMER HOLDINGS, INC.(b)		1,153,219		1,088,379
				29,255,807		42,877,785		12.90%
Industrials:
	8,287	3M CO.		505,006		677,297

See accompanying notes to the financial statements. 34 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)			Percent of net assets
Industrials (Cont’d):
	36,100	ABB LTD. ADR(b)(c)(d)	$	718,842		679,763
	3,500	AECOM TECHNOLOGY CORP.(b)		64,365		71,995
	21,210	AGCO CORP.(b)		815,335		911,394
	43,820	AIR LEASE CORP.(b)		1,151,677		1,038,972
	3,450	AMETEK, INC.		73,220		145,245
	13,900	AMR CORP.(b)		48,593		4,865
	2,700	BABCOCK & WILCOX (THE) CO.(b)		35,478		65,178
	1,700	BE AEROSPACE, INC.(b)		47,626		65,807
	17,000	BOEING (THE) CO.		402,135		1,246,950
	3,400	C.H. ROBINSON WORLDWIDE, INC.		164,205		237,252
	2,200	CARLISLE COS., INC.		45,116		97,460
	11,004	CATERPILLAR, INC.		295,368		996,962
	2,500	CHICAGO BRIDGE & IRON CO. N.V. (REGISTERED)(c)		50,995		94,500
	2,500	CINTAS CORP.		70,284		87,025
	2,027	CON-WAY, INC.		44,529		59,107
	1,400	COOPER INDUSTRIES PLC		60,725		75,810
	800	COPA HOLDINGS S.A., CLASS A(c)		32,618		46,936
	2,600	CORRECTIONS CORP. OF AMERICA(b)		49,022		52,962
	3,948	CRANE CO.		66,572		184,411
	27,900	CSX CORP.		97,923		587,574
	3,800	CUMMINS, INC.		53,831		334,476
	11,163	DANAHER CORP.		255,642		525,108
	7,300	DEERE & CO.		199,160		564,655
	38,405	DIGITALGLOBE, INC.(b)		1,152,062		657,110
	1,600	DONALDSON CO., INC.		63,714		108,928
	3,325	DOVER CORP.		122,574		193,016
	1,987	DUN & BRADSTREET (THE) CORP.		49,383		148,687
	8,400	EATON CORP.		158,064		365,652
	34,425	EMCOR GROUP, INC.		972,737		922,934
	15,500	EMERSON ELECTRIC CO.		422,332		722,145
	195,600	EXELIS, INC.		2,224,286		1,770,180
	1,800	EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.		57,067		73,728
	3,800	FASTENAL CO.		62,224		165,718
	6,653	FEDEX CORP.		130,734		555,592
	2,550	FLUOR CORP.		52,518		128,138
	4,300	FORTUNE BRANDS HOME & SECURITY, INC.(b)		33,889		73,229
	300	GARDNER DENVER, INC.		16,684		23,118
	1,400	GATX CORP.		24,276		61,124
	2,500	GENERAL CABLE CORP.(b)		60,825		62,525
	1,200	GENERAL DYNAMICS CORP.		78,384		79,692
	323,800	GENERAL ELECTRIC CO.		5,470,770		5,799,258
	3,200	GOODRICH CORP.		95,088		395,840
	4,800	GRAFTECH INTERNATIONAL LTD.(b)		68,496		65,520
	1,600	HARSCO CORP.		28,236		32,928
	6,600	HERTZ GLOBAL HOLDINGS, INC.(b)		37,676		77,352
	9,188	HONEYWELL INTERNATIONAL, INC.		279,204		499,368
	1,200	HUBBELL, INC., CLASS B		43,310		80,232
	610	HUNTINGTON INGALLS INDUSTRIES, INC.(b)		14,978		19,081	��
	2,500	IDEX CORP.		58,238		92,775
	700	IHS, INC., CLASS A(b)		30,838		60,312
	4,824	ILLINOIS TOOL WORKS, INC.		155,812		225,329
	5,400	IRON MOUNTAIN, INC.		121,527		166,320
	28,800	ITT CORP.		517,715		556,704
	2,100	J.B. HUNT TRANSPORT SERVICES, INC.		40,530		94,647
	2,068	JACOBS ENGINEERING GROUP, INC.(b)		46,598		83,919
	2,038	JOY GLOBAL, INC.		92,539		152,789
	2,900	KANSAS CITY SOUTHERN(b)		46,328		197,229
	2,800	KBR, INC.		55,655		78,036
	1,200	L-3 COMMUNICATIONS HOLDINGS, INC.		56,882		80,016
	1,200	LANDSTAR SYSTEM, INC.		38,351		57,504
	900	LENNOX INTERNATIONAL, INC.		26,811		30,375
	1,400	LINCOLN ELECTRIC HOLDINGS, INC.		28,970		54,768
	2,600	LOCKHEED MARTIN CORP.		74,846		210,340
	14,475	MANPOWER, INC.		505,719		517,481
	13,200	MASCO CORP.		97,548		138,336
	42,625	MASTEC, INC.(b)		640,618		740,396
	700	NORDSON CORP.		29,470		28,826
	5,360	NORFOLK SOUTHERN CORP.		121,639		390,530

See accompanying notes to the financial statements. 35 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Industrials (Cont’d):
	3,660	NORTHROP GRUMMAN CORP.	$	139,878		214,037
	6,300	OSHKOSH CORP.(b)		109,053		134,694
	1,100	OWENS CORNING(b)		22,578		31,592
	8,389	PACCAR, INC.		91,278		314,336
	2,200	PALL CORP.		55,214		125,730
	2,850	PARKER HANNIFIN CORP.		123,853		217,312
	600	PENTAIR, INC.		17,889		19,974
	2,100	PRECISION CASTPARTS CORP.		126,967		346,059
	44,000	QUANTA SERVICES, INC.(b)		862,333		947,760
	3,000	R.R. DONNELLEY & SONS CO.		43,590		43,290
	5,700	RAYTHEON CO.		160,192		275,766
	49,718	REPUBLIC SERVICES, INC.		1,348,686		1,369,731
	5,250	ROCKWELL AUTOMATION, INC.		73,987		385,192
	5,214	ROCKWELL COLLINS, INC.		154,728		288,699
	300	ROPER INDUSTRIES, INC.		19,526		26,061
	600	RYDER SYSTEM, INC.		24,336		31,884
	700	SNAP-ON, INC.		17,991		35,434
	20,400	SOUTHWEST AIRLINES CO.		154,768		174,624
	54,045	SPIRIT AEROSYSTEMS HOLDINGS, INC., CLASS A(b)		1,246,466		1,123,055
	300	SPX CORP.		11,766		18,081
	2,557	STANLEY BLACK & DECKER, INC.		72,048		172,853
	2,000	STERICYCLE, INC.(b)		95,284		155,840
	97,000	TEXTRON, INC.		2,350,672		1,793,530
	10,500	TYCO INTERNATIONAL LTD.(c)		388,274		490,455
	7,600	UNION PACIFIC CORP.		219,426		805,144
	7,840	UNITED PARCEL SERVICE, INC., CLASS B		424,293		573,810
	16,850	UNITED TECHNOLOGIES CORP.		637,288		1,231,567
	33,025	UNIVERSAL FOREST PRODUCTS, INC.		1,164,401		1,019,482
	21,735	URS CORP.(b)		957,699		763,333
	2,000	USG CORP.(b)		12,350		20,320
	4,100	UTI WORLDWIDE, INC.(c)		50,356		54,489
	1,700	W.W. GRAINGER, INC.		74,317		318,223
	1,966	WABCO HOLDINGS, INC.(b)		30,197		85,324
	700	WABTEC CORP.		25,602		48,965
	1,650	WASTE CONNECTIONS, INC.		29,914		54,681
	8,650	WASTE MANAGEMENT, INC.		135,675		282,942
	57,600	XYLEM, INC.		1,826,023		1,479,744
				33,153,310		41,363,444		12.45%
Information Technology:
	8,100	ACCENTURE PLC, CLASS A(c)		365,109		431,163
	5,600	ACTIVISION BLIZZARD, INC.		9,966		68,992
	6,224	ADOBE SYSTEMS, INC.(b)		79,363		175,953
	14,300	ADVANCED MICRO DEVICES, INC.(b)		64,278		77,220
	3,300	AKAMAI TECHNOLOGIES, INC.(b)		45,920		106,524
	1,600	ALLIANCE DATA SYSTEMS CORP.(b)		75,650		166,144
	5,000	ALTERA CORP.		94,155		185,500
	200	AMPHENOL CORP., CLASS A		8,409		9,078
	8,600	ANALOG DEVICES, INC.		120,368		307,708
	2,400	ANSYS, INC.(b)		81,726		137,472
	15,000	APPLE, INC.(b)		411,858		6,075,000
	700	ARROW ELECTRONICS, INC.(b)		18,814		26,187
	52,325	ATMEL CORP.(b)		456,466		423,832
	58,000	ATMI, INC.(b)		1,134,063		1,161,740
	1,686	AUTODESK, INC.(b)		32,709		51,136
	4,066	AUTOMATIC DATA PROCESSING, INC.		132,231		219,605
	59,130	AVNET, INC.(b)		1,932,175		1,838,352
	70,325	BENCHMARK ELECTRONICS, INC.(b)		1,211,936		947,278
	4,550	BMC SOFTWARE, INC.(b)		89,322		149,149
	9,791	BROADCOM CORP., CLASS A(b)		159,344		287,464
	2,180	BROADRIDGE FINANCIAL SOLUTIONS, INC.		33,319		49,159
	4,200	CADENCE DESIGN SYSTEMS, INC.(b)		24,003		43,680
	105,450	CISCO SYSTEMS, INC.		160,814		1,906,536
	4,234	CITRIX SYSTEMS, INC.(b)		47,867		257,088
	6,300	COGNIZANT TECHNOLOGY SOLUTIONS CORP., CLASS A(b)		95,624		405,153
	148,365	COMPUWARE CORP.(b)		1,506,265		1,234,397
	6,700	CORELOGIC, INC.(b)		76,313		86,631
	21,700	CORNING, INC.		154,491		281,666
	1,300	CREE, INC.(b)		33,512		28,652

See accompanying notes to the financial statements. 36 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Information Technology (Cont’d):
	2,700	CYPRESS SEMICONDUCTOR CORP.(b)	$	8,256		45,603
	17,650	DELL, INC.(b)		255,615		258,220
	2,000	DOLBY LABORATORIES, INC., CLASS A(b)		43,420		61,020
	14,300	EBAY, INC.(b)		312,035		433,719
	2,140	ECHOSTAR CORP., CLASS A(b)		36,471		44,812
	34,310	EMC CORP.(b)		233,560		739,038
	900	EQUINIX, INC.(b)		69,754		91,260
	1,300	F5 NETWORKS, INC.(b)		30,062		137,956
	7,802	FIDELITY NATIONAL INFORMATION SERVICES, INC.		135,427		207,455
	3,950	FISERV, INC.(b)		108,064		232,023
	1,400	FLIR SYSTEMS, INC.		30,177		35,098
	1,400	FORTINET, INC.(b)		24,304		30,534
	1,000	GLOBAL PAYMENTS, INC.		33,115		47,380
	4,067	GOOGLE, INC., CLASS A(b)		1,221,503		2,626,875
	2,800	HARRIS CORP.		37,337		100,912
	54,557	HEWLETT-PACKARD CO.		1,224,983		1,405,388
	5,200	INGRAM MICRO, INC., CLASS A(b)		68,614		94,588
	138,725	INTEL CORP.		1,017,830		3,364,081
	17,941	INTERNATIONAL BUSINESS MACHINES CORP.		1,445,165		3,298,991
	5,000	INTUIT, INC.		103,285		262,950
	1,900	ITRON, INC.(b)		65,968		67,963
	900	JABIL CIRCUIT, INC.(b)		14,715		17,694
	4,667	JUNIPER NETWORKS, INC.(b)		75,460		95,254
	2,600	KLA-TENCOR CORP.		86,094		125,450
	3,000	LAM RESEARCH CORP.(b)		83,706		111,060
	3,700	LENDER PROCESSING SERVICES, INC.		55,722		55,759
	2,000	LEXMARK INTERNATIONAL, INC., CLASS A		30,530		66,140
	5,400	LINEAR TECHNOLOGY CORP.		119,475		162,162
	400	LINKEDIN CORP., CLASS A(b)		25,488		25,204
	23,700	LSI CORP.(b)		99,658		141,015
	5,900	MARVELL TECHNOLOGY GROUP LTD.(b)(c)		29,824		81,715
	1,700	MASTERCARD, INC., CLASS A		182,282		633,794
	7,000	MAXIM INTEGRATED PRODUCTS, INC.		125,147		182,280
	4,200	MICROCHIP TECHNOLOGY, INC.		66,925		153,846
	15,300	MICRON TECHNOLOGY, INC.(b)		68,620		96,237
	1,000	MICROS SYSTEMS, INC.(b)		26,215		46,580
	123,950	MICROSOFT CORP.		535,441		3,217,742
	3,700	MOTOROLA MOBILITY HOLDINGS, INC.(b)		57,454		143,560
	56,428	MOTOROLA SOLUTIONS, INC.		2,240,348		2,612,052
	4,200	NETAPP, INC.(b)		94,994		152,334
	4,800	NEUSTAR, INC., CLASS A(b)		79,848		164,016
	1,600	NOVELLUS SYSTEMS, INC.(b)		40,000		66,064
	4,800	NUANCE COMMUNICATIONS, INC.(b)		63,624		120,768
	8,900	NVIDIA CORP.(b)		60,716		123,354
	4,000	ON SEMICONDUCTOR CORP.(b)		30,100		30,880
	70,462	ORACLE CORP.		105,191		1,807,350
	6,266	PAYCHEX, INC.		76,160		188,669
	22,200	QUALCOMM, INC.		562,630		1,214,340
	4,200	RED HAT, INC.(b)		61,669		173,418
	136,275	RF MICRO DEVICES, INC.(b)		849,403		735,885
	1,100	RIVERBED TECHNOLOGY, INC.(b)		23,815		25,850
	2,300	ROVI CORP.(b)		55,714		56,534
	2,000	SAIC, INC.(b)		24,560		24,580
	1,900	SALESFORCE.COM, INC.(b)		86,710		192,774
	5,300	SANDISK CORP.(b)		51,148		260,813
	6,500	SEAGATE TECHNOLOGY PLC(c)		61,132		106,600
	13,177	SUNPOWER CORP.(b)		117,625		82,093
	15,519	SYMANTEC CORP.(b)		88,098		242,872
	1,500	SYNOPSYS, INC.(b)		24,907		40,800
	26,450	TE CONNECTIVITY LTD.(c)		876,308		814,924
	14,300	TELLABS, INC.		64,350		57,772
	4,500	TERADATA CORP.(b)		73,317		218,295
	4,400	TERADYNE, INC.(b)		40,150		59,972
	17,400	TEXAS INSTRUMENTS, INC.		280,527		506,514
	2,500	TRIMBLE NAVIGATION LTD.(b)		38,162		108,500
	7,500	VISA, INC., CLASS A		543,213		761,475
	7,800	VISHAY INTERTECHNOLOGY, INC.(b)		48,931		70,122
	557	VISHAY PRECISION GROUP, INC.(b)		5,692		8,901

See accompanying notes to the financial statements. 37 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Information Technology (Cont’d):
	1,500	VMWARE, INC., CLASS A(b)	$	47,284		124,785
	2,666	WEBMD HEALTH CORP.(b)		58,227		100,108
	49,525	WEBSENSE, INC.(b)		1,048,348		927,603
	5,900	WESTERN DIGITAL CORP.(b)		91,433		182,605
	14,207	XEROX CORP.		94,177		113,088
	6,750	XILINX, INC.		47,180		216,405
	15,940	YAHOO!, INC.(b)		136,630		257,112
				25,136,092		49,030,044		14.75%
Materials:
	9,600	AGNICO-EAGLE MINES LTD.(c)		444,382		348,672
	3,375	AIR PRODUCTS & CHEMICALS, INC.		165,820		287,516
	400	AIRGAS, INC.		16,882		31,232
	1,300	ALBEMARLE CORP.		29,152		66,963
	16,800	ALCOA, INC.		175,346		145,320
	1,600	ALLEGHENY TECHNOLOGIES, INC.		39,592		76,480
	3,500	ALLIED NEVADA GOLD CORP.(b)		105,490		105,980
	55,000	ANGLOGOLD ASHANTI LTD. ADR(c)(d)		2,570,646		2,334,750
	800	APTARGROUP, INC.		27,324		41,736
	1,600	ASHLAND, INC.		47,358		91,456
	124,725	AURICO GOLD, INC.(b)(c)		966,685		1,002,564
	3,064	BALL CORP.		11,968		109,415
	3,000	BEMIS CO., INC.		66,889		90,240
	1,300	CF INDUSTRIES HOLDINGS, INC.		124,851		188,474
	1,700	CLIFFS NATURAL RESOURCES, INC.		42,764		105,995
	500	COMPASS MINERALS INTERNATIONAL, INC.		27,452		34,425
	40,505	CROWN HOLDINGS, INC.(b)		1,226,421		1,360,158
	700	CYTEC INDUSTRIES, INC.		25,564		31,255
	1,000	DOMTAR CORP.(c)		52,480		79,960
	11,000	DOW CHEMICAL (THE) CO.		238,011		316,360
	13,025	E.I. DU PONT DE NEMOURS & CO.		385,472		596,285
	438	EAGLE MATERIALS, INC.		1,727		11,239
	3,000	EASTMAN CHEMICAL CO.		58,012		117,180
	4,491	ECOLAB, INC.		162,542		259,625
	20,496	FREEPORT-MCMORAN COPPER & GOLD, INC.		517,188		754,048
	900	GREIF, INC., CLASS A		27,104		40,995
	3,683	INTERNATIONAL FLAVORS & FRAGRANCES, INC.		79,230		193,063
	9,431	INTERNATIONAL PAPER CO.		117,152		279,158
	2,300	KRONOS WORLDWIDE, INC.		42,780		41,492
	3,600	LYONDELLBASELL INDUSTRIES N.V., CLASS A(c)		106,560		116,964
	700	MARTIN MARIETTA MATERIALS, INC.		27,965		52,787
	2,875	MEADWESTVACO CORP.		30,334		86,106
	10,115	MONSANTO CO.		47,604		708,758
	4,400	MOSAIC (THE) CO.		150,149		221,892
	54,100	NEWMONT MINING CORP.		2,751,951		3,246,541
	5,844	NUCOR CORP.		99,313		231,247
	5,950	OWENS-ILLINOIS, INC.(b)		91,875		115,311
	2,100	PACKAGING CORP. OF AMERICA		30,901		53,004
	3,986	PPG INDUSTRIES, INC.		180,558		332,791
	6,450	PRAXAIR, INC.		258,706		689,505
	2,200	RELIANCE STEEL & ALUMINUM CO.		61,215		107,118
	1,100	ROYAL GOLD, INC.		53,182		74,173
	6,500	RPM INTERNATIONAL, INC.		72,503		159,575
	42,325	RTI INTERNATIONAL METALS, INC.(b)		995,824		982,363
	200	SCOTTS MIRACLE-GRO (THE) CO., CLASS A		7,195		9,338
	2,500	SEALED AIR CORP.		45,225		43,025
	1,585	SHERWIN-WILLIAMS (THE) CO.		72,398		141,493
	3,600	SONOCO PRODUCTS CO.		74,519		118,656
	3,200	SOUTHERN COPPER CORP.		38,448		96,576
	8,700	STEEL DYNAMICS, INC.		95,178		114,405
	2,000	TEMPLE-INLAND, INC.		22,890		63,420
	3,200	VALSPAR CORP.		68,240		124,704
	2,100	VULCAN MATERIALS CO.		63,441		82,635
	1,800	WALTER ENERGY, INC.		42,609		109,008
				13,285,067		17,223,431		5.18%
Telecommunication Services:
	3,550	AMERICAN TOWER CORP., CLASS A(b)		164,786		213,036

See accompanying notes to the financial statements. 38 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2011

Shares			Security	Cost		Fair value (a)		Percent of net assets
Telecommunication Services (Cont’d):
	128,715		AT&T, INC.	$	3,085,810		3,892,341
	2,600		CENTURYLINK, INC.		97,708		96,720
	31,600		CLEARWIRE CORP., CLASS A(b)		78,368		61,304
	4,600		CROWN CASTLE INTERNATIONAL CORP.(b)		194,396		206,080
	40,100		FRONTIER COMMUNICATIONS CORP.		242,421		206,515
	4,400		NII HOLDINGS, INC.(b)		133,628		93,720
	5,000		TELEPHONE & DATA SYSTEMS, INC.		109,150		129,450
	51,483		VERIZON COMMUNICATIONS, INC.		1,529,395		2,065,498
					5,635,662		6,964,664		2.10%
Utilities:
	10,400		AES (THE) CORP.(b)		105,450		123,136
	4,500		AGL RESOURCES, INC.		135,198		190,170
	1,000		ALLIANT ENERGY CORP.		24,835		44,110
	1,600		AMEREN CORP.		40,872		53,008
	9,200		AMERICAN ELECTRIC POWER CO., INC.		289,948		380,052
	36,935		AMERICAN WATER WORKS CO., INC.		905,525		1,176,749
	1,888		AQUA AMERICA, INC.		32,248		41,630
	33,100		BLACK HILLS CORP.		999,432		1,111,498
	8,600		CALPINE CORP.(b)		57,319		140,438
	5,800		CENTERPOINT ENERGY, INC.		66,308		116,522
	10,200		CMS ENERGY CORP.		144,342		225,216
	4,589		CONSOLIDATED EDISON, INC.		184,849		284,656
	2,715		CONSTELLATION ENERGY GROUP, INC.		79,463		107,704
	8,862		DOMINION RESOURCES, INC.		284,452		470,395
	2,800		DTE ENERGY CO.		105,289		152,460
	22,213		DUKE ENERGY CORP.		248,268		488,686
	8,525		EDISON INTERNATIONAL		182,117		352,935
	3,064		ENTERGY CORP.		60,101		223,825
	6,500		EXELON CORP.		245,607		281,905
	3,500		FIRSTENERGY CORP.		135,258		155,050
	8,700		GREAT PLAINS ENERGY, INC.		157,250		189,486
	37,200		HAWAIIAN ELECTRIC INDUSTRIES, INC.		827,997		985,056
	800		INTEGRYS ENERGY GROUP, INC.		41,296		43,344
	3,500		ITC HOLDINGS CORP.		154,844		265,580
	1,500		NATIONAL FUEL GAS CO.		38,322		83,370
	4,000		NEXTERA ENERGY, INC.		157,876		243,520
	6,900		NISOURCE, INC.		111,901		164,289
	2,600		NORTHEAST UTILITIES		64,649		93,782
	5,500		NRG ENERGY, INC.(b)		108,207		99,660
	1,800		NSTAR		60,859		84,528
	6,200		NV ENERGY, INC.		76,954		101,370
	2,400		OGE ENERGY CORP.		43,344		136,104
	1,000		ONEOK, INC.		31,518		86,690
	4,028		PEPCO HOLDINGS, INC.		71,539		81,768
	7,700		PG&E CORP.		145,781		317,394
	2,400		PINNACLE WEST CAPITAL CORP.		71,637		115,632
	63,425		PNM RESOURCES, INC.		779,548		1,156,238
	700		PPL CORP.		11,190		20,594
	4,600		PROGRESS ENERGY, INC.		166,393		257,692
	5,984		PUBLIC SERVICE ENTERPRISE GROUP, INC.		171,531		197,532
	67,975		QUESTAR CORP.		1,151,883		1,349,984
	4,800		SCANA CORP.		166,536		216,288
	2,700		SEMPRA ENERGY		124,368		148,500
	11,300		SOUTHERN (THE) CO.		258,573		523,077
	7,600		TECO ENERGY, INC.		90,842		145,464
	3,100		UGI CORP.		51,202		91,140
	1,400		WESTAR ENERGY, INC.		25,767		40,292
	4,820		WISCONSIN ENERGY CORP.		46,469		168,507
	4,825		XCEL ENERGY, INC.		43,342		133,363
					9,578,499		13,660,389		4.11%
		Sub-total Common Stocks:			221,672,223		320,260,449		96.37%
Rights:
Health Care:
	700		SANOFI(b)(c)		-		840
		Sub-total Rights:			-		840		0.00%

See accompanying notes to the financial statements. 39 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2011

Shares			Security	Cost		Fair value (a)		Percent of net assets
Short-Term Investments:
	12,242,109		NORTHERN INSTITUTIONAL GOVERNMENT SELECT PORTFOLIO, 0.01%(e)	$	12,242,109		12,242,109
		Sub-total Short-Term Investments:			12,242,109		12,242,109		3.69	%
			Grand total(f)	$	233,914,332		332,503,398		100.06	%

Notes to Schedule of Investments:

(a)	Securities are valued in accordance with procedures described in note 2 to the financial statements.
(b)	Currently non-income producing assets.
(c)	Foreign security values are stated in U.S. dollars. As of December 31, 2011, the value of foreign stocks or depositary receipts of companies based outside of the United States represented 6.17% of net assets.
(d)	Securities are American Depositary Receipts of companies based outside of the United States representing 3.17% of net assets.
(e)	The short-term investment is a money market portfolio of the investment company, Northern Institutional Funds. At December 31, 2010, the value of the Fund’s investment in the Government Select Portfolio of the Northern Institutional Funds was approximately $24,212,191 with net sales of approximately $11,970,082 during the fiscal year ended December 31, 2011.
(f)	At December 31, 2011, the cost for Federal income tax purposes was $234,089,127. The aggregate gross unrealized appreciation and depreciation of investments in securities based on this cost were as follows:

Gross unrealized appreciation	$	111,286,409
Gross unrealized depreciation		(12,872,138	)
Net unrealized appreciation	$	98,414,271

See accompanying notes to the financial statements. 40 (Continued)

CLEARWATER INVESTMENT TRUST

Schedule of Investments – Clearwater Growth Fund
December 31, 2011

See accompanying notes to the financial statements. 41 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Cap Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Common Stocks:
Consumer Discretionary:
	19,000	ARBITRON, INC.	$	777,999		653,790
	19,287	BELO CORP., CLASS A		103,761		121,508
	71,222	BLACK DIAMOND, INC.(b)		479,975		532,028
	5,072	BRAVO BRIO RESTAURANT GROUP, INC.(b)		79,887		86,985
	2,733	CARIBOU COFFEE CO., INC.(b)		36,997		38,125
	4,023	CEC ENTERTAINMENT, INC.		126,143		138,592
	37,472	CENTURY CASINOS, INC.(b)		73,098		97,052
	23,435	CHILDREN’S PLACE RETAIL STORES (THE), INC.(b)		963,477		1,244,867
	47,955	COLLECTIVE BRANDS, INC.(b)		594,648		689,113
	115,235	COOPER TIRE & RUBBER CO.		2,053,723		1,614,442
	14,517	COST PLUS, INC.(b)		137,114		141,541
	157,000	DENNY’S CORP.(b)		608,569		590,320
	25,535	DGSE COS., INC.(b)		65,426		185,384
	4,016	DIGITAL GENERATION, INC.(b)		47,951		47,871
	167,415	ENTERCOM COMMUNICATIONS CORP., CLASS A(b)		1,264,024		1,029,602
	307,810	EXIDE TECHNOLOGIES(b)		1,920,755		809,540
	28,500	GAYLORD ENTERTAINMENT CO.(b)		666,790		687,990
	12,474	GENESCO, INC.(b)		321,290		770,145
	264,575	HANCOCK FABRICS, INC.(b)		357,610		236,795
	28,500	HANESBRANDS, INC.(b)		652,515		623,010
	192,181	ICONIX BRAND GROUP, INC.(b)		2,498,961		3,130,629
	3,778	JOHNSON OUTDOORS, INC., CLASS A(b)		55,154		57,992
	6,990	KRISPY KREME DOUGHNUTS, INC.(b)		46,120		45,715
	31,000	MADISON SQUARE GARDEN (THE) CO., CLASS A(b)		599,247		887,840
	152,405	MAIDENFORM BRANDS, INC.(b)		3,847,892		2,789,012
	37,000	MARCUS CORP.		421,681		466,570
	80,143	MCCORMICK & SCHMICK’S SEAFOOD RESTAURANTS, INC.(b)		696,050		700,450
	20,500	O’CHARLEYS, INC.(b)		130,841		112,545
	98,944	OUTDOOR CHANNEL HOLDINGS, INC.		617,641		738,122
	37,000	PENSKE AUTOMOTIVE GROUP, INC.		723,337		712,250
	6,885	PEP BOYS-MANNY, MOE & JACK		99,187		75,735
	20,000	PETSMART, INC.		428,805		1,025,800
	111,349	PIER 1 IMPORTS, INC.(b)		1,214,965		1,551,092
	26,550	RED ROBIN GOURMET BURGERS, INC.(b)		930,372		735,435
	38,659	ROCKY BRANDS, INC.(b)		324,736		348,704
	8,835	RUBY TUESDAY, INC.(b)		58,393		60,962
	52,000	SALLY BEAUTY HOLDINGS, INC.(b)		443,733		1,098,760
	7,690	SHILOH INDUSTRIES, INC.(b)		88,974		64,442
	12,047	SMITH & WESSON HOLDING CORP.(b)		34,577		52,525
	28,404	STEINWAY MUSICAL INSTRUMENTS, INC.(b)		666,405		711,236
	178,965	STONERIDGE, INC.(b)		1,693,295		1,508,675
	10,888	SUMMER INFANT, INC.(b)		73,936		76,652
	17,793	TANDY LEATHER FACTORY, INC.(b)		81,842		86,830
	16,034	TUESDAY MORNING CORP.(b)		63,498		55,317
	62,694	UNIVERSAL ELECTRONICS, INC.(b)		1,618,250		1,057,648
	14,000	VAIL RESORTS, INC.		517,107		593,040
	96,674	WMS INDUSTRIES, INC.(b)		1,856,085		1,983,750
	89,057	WOLVERINE WORLD WIDE, INC.		2,652,213		3,173,992
	28,000	WYNDHAM WORLDWIDE CORP.		695,522		1,059,240
				34,510,571		35,299,660		14.74	%
Consumer Staples:
	7,090	CENTRAL GARDEN AND PET CO.(b)		69,113		57,854
	243,992	COTT CORP.(b)(c)		2,016,705		1,527,390
	40,500	FLOWERS FOODS, INC.		511,723		768,690
	6,521	INVENTURE FOODS, INC.(b)		25,546		24,389
	21,958	OMEGA PROTEIN CORP.(b)		137,497		156,561
	12,057	PANTRY (THE), INC.(b)		174,975		144,322
	11,563	SENECA FOODS CORP., CLASS A(b)		264,128		298,557
	30,000	SNYDERS-LANCE, INC.		663,181		675,000
	96,212	SPECTRUM BRANDS HOLDINGS, INC.(b)		2,637,112		2,636,209
	4,399	SUSSER HOLDINGS CORP.(b)		101,048		99,505
	25,138	TREEHOUSE FOODS, INC.(b)		1,179,215		1,643,522
	38,559	WINN-DIXIE STORES, INC.(b)		359,297		361,683
				8,139,540		8,393,682		3.50	%

See accompanying notes to the financial statements. 42 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Cap Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Energy:
	30,850	BILL BARRETT CORP.(b)	$	1,163,267		1,051,059
	85,577	CARRIZO OIL & GAS, INC.(b)		2,595,319		2,254,954
	48,975	COMPLETE PRODUCTION SERVICES, INC.(b)		1,437,051		1,643,601
	11,000	CONTANGO OIL & GAS CO.(b)		487,508		639,980
	43,442	CVR ENERGY, INC.(b)		992,930		813,669
	11,000	DRIL-QUIP, INC.(b)		534,766		724,020
	28,000	GULFPORT ENERGY CORP.(b)		896,991		824,600
	37,038	MAGELLAN PETROLEUM CORP.(b)		58,406		35,853
	46,000	MCDERMOTT INTERNATIONAL, INC.(b)		559,629		529,460
	32,000	OASIS PETROLEUM, INC.(b)		564,228		930,880
	187,435	PIONEER DRILLING CO.(b)		1,600,441		1,814,371
	20,000	QEP RESOURCES, INC.		740,019		586,000
	31,972	SUPERIOR ENERGY SERVICES, INC.(b)		621,168		909,284
	65,689	TESCO CORP.(b)		636,398		830,309
	20,063	VENOCO, INC.(b)		164,101		135,826
				13,052,222		13,723,866		5.73	%
Financials:
	4,398	AMERICAN SAFETY INSURANCE HOLDINGS LTD.(b)		89,930		95,656
	45,410	AMTRUST FINANCIAL SERVICES, INC.		746,371		1,078,488
	27,000	ARTHUR J. GALLAGHER & CO.		562,570		902,880
	32,434	ASPEN INSURANCE HOLDINGS LTD.(c)		785,167		859,501
	29,519	ASSOCIATED ESTATES REALTY CORP.		434,540		470,828
	136,199	BANCORP (THE), INC.(b)		1,285,289		984,719
	7,419	BERKSHIRE HILLS BANCORP, INC.		163,389		164,628
	127,968	BRANDYWINE REALTY TRUST		1,471,142		1,215,696
	33,818	BROOKLINE BANCORP, INC.		285,383		285,424
	65,000	CAPITOL FEDERAL FINANCIAL, INC.		768,473		750,100
	61,522	CAPLEASE, INC.(b)		112,062		248,549
	35,000	CBOE HOLDINGS, INC.		848,346		905,100
	73,325	CHESAPEAKE LODGING TRUST		1,170,375		1,133,604
	32,680	COMMUNITY TRUST BANCORP, INC.		907,688		961,446
	8,037	CREXUS INVESTMENT CORP.		83,357		83,424
	50,540	DELPHI FINANCIAL GROUP, INC., CLASS A		1,147,339		2,238,922
	43,905	EDUCATION REALTY TRUST, INC.(b)		325,730		449,148
	3,940	EMC INSURANCE GROUP, INC.		88,020		81,046
	48,000	EPOCH HOLDING CORP.		635,774		1,067,040
	49,000	FIRST AMERICAN FINANCIAL CORP.		686,144		620,830
	99,971	FIRST MERCHANTS CORP.		651,779		846,754
	10,657	FIRST PACTRUST BANCORP, INC.		135,371		109,234
	14,155	FIRST POTOMAC REALTY TRUST		135,590		184,723
	54,718	FIRSTMERIT CORP.		732,885		827,883
	50,000	FORESTAR GROUP, INC.(b)		940,728		756,500
	2,899	GAIN CAPITAL HOLDINGS, INC.		19,202		19,423
	34,617	GLADSTONE CAPITAL CORP.		267,566		264,128
	19,289	HALLMARK FINANCIAL SERVICES, INC.(b)		134,431		134,830
	13,499	HERITAGE FINANCIAL CORP.		167,280		169,547
	48,080	HOME FEDERAL BANCORP, INC.		611,641		500,032
	18,322	HOME PROPERTIES, INC.		1,011,860		1,054,798
	40,566	HORACE MANN EDUCATORS CORP.		535,876		556,160
	11,205	HORIZON BANCORP		100,149		195,191
	14,934	HUDSON PACIFIC PROPERTIES, INC.		201,322		211,465
	39,397	IBERIABANK CORP.		1,971,208		1,942,272
	87,954	INVESTORS BANCORP, INC.(b)		1,204,493		1,185,620
	35,719	INVESTORS CAPITAL HOLDINGS LTD.(b)		151,806		146,448
	8,999	KAISER FEDERAL FINANCIAL GROUP, INC.		89,990		115,367
	25,350	KITE REALTY GROUP TRUST		93,223		114,328
	27,000	LEGG MASON, INC.		672,286		649,350
	47,000	MANNING & NAPIER, INC.(b)		581,252		587,030
	69,723	MEDICAL PROPERTIES TRUST, INC.		669,526		688,166
	6,600	MIDSOUTH BANCORP, INC.		97,614		85,866
	82,104	MISSION WEST PROPERTIES, INC.		596,609		740,578
	20,897	NATIONAL FINANCIAL PARTNERS CORP.(b)		245,242		282,528
	53,301	NATIONAL RETAIL PROPERTIES, INC.		889,297		1,406,080
	154,793	NGP CAPITAL RESOURCES CO.		1,547,378		1,112,962
	132,855	NORTHWEST BANCSHARES, INC.		1,365,649		1,652,716
	55,000	ORITANI FINANCIAL CORP.		694,042		702,350
	10,928	PACIFIC CONTINENTAL CORP.		101,008		96,713
	41,657	PACWEST BANCORP		857,628		789,400

See accompanying notes to the financial statements. 43 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Cap Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Financials (Cont’d):
	13,111	PARK STERLING CORP.(b)	$	80,326		53,493
	90,553	PHOENIX (THE) COS., INC.(b)		231,406		152,129
	44,982	PLATINUM UNDERWRITERS HOLDINGS LTD.(c)		1,423,961		1,534,336
	42,757	PRESIDENTIAL LIFE CORP.		424,376		427,143
	9,471	RENASANT CORP.		151,594		142,065
	89,555	ROCKVILLE FINANCIAL, INC.		918,303		927,790
	5,634	SCBT FINANCIAL CORP.		171,266		163,442
	16,131	SI FINANCIAL GROUP, INC.		153,421		158,890
	7,026	SOUTHSIDE BANCSHARES, INC.		140,417		152,183
	3,860	STATE BANK FINANCIAL CORP.(b)		58,804		58,325
	12,198	STELLARONE CORP.		175,812		138,813
	19,037	SUNSTONE HOTEL INVESTORS, INC.(b)		117,092		155,152
	35,000	TERRITORIAL BANCORP, INC.		553,273		691,250
	49,590	TOWER BANCORP, INC.		1,152,178		1,415,299
	91,990	UMPQUA HOLDINGS CORP.		1,001,674		1,139,756
	13,331	UNITED FINANCIAL BANCORP, INC.		172,645		214,496
	15,362	UNIVEST CORP. OF PENNSYLVANIA		256,796		224,900
	20,364	URSTADT BIDDLE PROPERTIES, INC., CLASS A		349,126		368,181
	52,500	VIEWPOINT FINANCIAL GROUP		669,191		683,025
	108,637	WALKER & DUNLOP, INC.(b)		1,283,279		1,364,481
	35,240	WALTER INVESTMENT MANAGEMENT CORP.		472,218		722,772
	10,087	WASHINGTON BANKING CO.		140,436		120,136
	114,520	WESTFIELD FINANCIAL, INC.		1,094,187		842,867
	21,000	WINTRUST FINANCIAL CORP.		721,450		589,050
				41,984,251		45,165,445		18.86	%
Health Care:
	16,600	ACCESS PLANS, INC.(b)		43,346		44,156
	16,391	ALPHATEC HOLDINGS, INC.(b)		43,036		28,193
	42,515	AMERICAN DENTAL PARTNERS, INC.(b)		662,190		800,557
	21,000	AMERISOURCEBERGEN CORP.		346,010		780,990
	9,203	BIOCLINICA, INC.(b)		45,794		39,113
	14,390	BIOCRYST PHARMACEUTICALS, INC.(b)		49,843		35,543
	21,285	BIOSCRIP, INC.(b)		94,580		116,216
	35,231	CATALYST HEALTH SOLUTIONS, INC.(b)		1,079,278		1,832,012
	3,930	CRYOLIFE, INC.(b)		18,517		18,864
	22,475	DGT HOLDINGS CORP.(b)		203,045		246,776
	37,000	HANGER ORTHOPEDIC GROUP, INC.(b)		718,063		691,530
	184,625	HEALTHSOUTH CORP.(b)		3,022,435		3,262,324
	70,543	HEALTHSPRING, INC.(b)		1,160,830		3,847,415
	20,886	HESKA CORP.(b)		180,903		152,468
	75,915	HILL-ROM HOLDINGS, INC.		2,211,588		2,557,576
	11,346	INTEGRAMED AMERICA, INC.(b)		87,872		89,066
	7,890	MEDIWARE INFORMATION SYSTEMS(b)		95,279		101,150
	20,377	MEDTOX SCIENTIFIC, INC.(b)		245,261		286,297
	58,803	MOLINA HEALTHCARE, INC.(b)		1,103,973		1,313,071
	14,476	OMNICELL, INC.(b)		208,148		239,144
	52,023	ORTHOFIX INTERNATIONAL N.V.(b)(c)		1,375,561		1,832,770
	41,276	PAR PHARMACEUTICAL COS., INC.(b)		1,148,885		1,350,963
	22,000	PATTERSON COS., INC.		514,141		649,440
	20,797	PDI, INC.(b)		139,001		134,141
	10,000	PERRIGO CO.		198,386		973,000
	15,203	REPLIGEN CORP.(b)		54,664		52,754
	8,570	SPECTRANETICS CORP.(b)		42,102		61,875
	19,530	SYNOVIS LIFE TECHNOLOGIES, INC.(b)		544,161		543,520
	23,440	WEST PHARMACEUTICAL SERVICES, INC.		874,755		889,548
	39,701	ZOLL MEDICAL CORP.(b)		1,058,664		2,508,309
				17,570,311		25,478,781		10.64	%
Industrials:
	19,000	A.O. SMITH CORP.		767,665		762,280
	50,600	ACTUANT CORP., CLASS A		949,396		1,148,114
	15,000	ACUITY BRANDS, INC.		533,328		795,000
	326,822	AIR TRANSPORT SERVICES GROUP, INC.(b)		1,748,300		1,542,600
	5,392	ASTRONICS CORP.(b)		100,603		193,087
	645	ASTRONICS CORP., CLASS B(b)		13,290		23,381
	55,000	AVIS BUDGET GROUP, INC.(b)		738,891		589,600
	23,528	AZZ, INC.		711,539		1,069,112
	32,000	BABCOCK & WILCOX (THE) CO.(b)		726,566		772,480

See accompanying notes to the financial statements. 44 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Cap Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Industrials (Cont’d):
	40,390	BELDEN, INC.	$	1,367,193		1,344,179
	11,565	BREEZE-EASTERN CORP.(b)		82,719		92,520
	3,695	CASCADE CORP.		91,752		174,293
	23,542	CASELLA WASTE SYSTEMS, INC., CLASS A(b)		136,225		150,669
	17,079	CECO ENVIRONMENTAL CORP.		94,807		96,496
	27,000	CHICAGO BRIDGE & IRON CO. N.V. (REGISTERED)(c)		486,367		1,020,600
	1,894	CIRCOR INTERNATIONAL, INC.		57,607		66,877
	37,000	COLFAX CORP.(b)		307,010		1,053,760
	138,530	COMMERCIAL VEHICLE GROUP, INC.(b)		1,118,060		1,252,311
	5,977	DUCOMMUN, INC.		96,481		76,207
	2,388	DXP ENTERPRISES, INC.(b)		36,554		76,894
	10,400	ENNIS, INC.		135,022		138,632
	20,000	ENPRO INDUSTRIES, INC.(b)		569,233		659,600
	46,750	ESCO TECHNOLOGIES, INC.		1,621,769		1,345,465
	29,000	FOSTER WHEELER A.G.(b)(c)		640,562		555,060
	4,709	FREIGHTCAR AMERICA, INC.(b)		73,440		98,654
	11,929	GARDNER DENVER, INC.		280,338		919,249
	149,529	GENCORP, INC.(b)		693,010		795,494
	17,000	GENESEE & WYOMING, INC., CLASS A(b)		425,830		1,029,860
	9,177	GP STRATEGIES CORP.(b)		62,336		123,706
	3,779	GRAHAM CORP.		79,742		84,801
	40,000	GREENBRIER COS., INC.(b)		575,947		971,200
	17,417	HAWAIIAN HOLDINGS, INC.(b)		93,239		101,019
	106,820	ICF INTERNATIONAL, INC.(b)		2,465,249		2,647,000
	949	ITEX CORP.		2,866		3,749
	35,000	ITT CORP.		698,010		676,550
	42,000	JOHN BEAN TECHNOLOGIES CORP.		552,164		645,540
	11,000	JOY GLOBAL, INC.		420,752		824,670
	16,000	KANSAS CITY SOUTHERN(b)		341,149		1,088,160
	24,500	L.B. FOSTER CO., CLASS A		563,464		693,105
	15,259	LYDALL, INC.(b)		115,269		144,808
	24,000	MACQUARIE INFRASTRUCTURE CO. LLC		652,272		670,800
	61,000	MANITOWOC (THE) CO., INC.		590,803		560,590
	73,247	METALICO, INC.(b)		434,718		240,983
	19,536	MIDDLEBY CORP.(b)		901,946		1,837,165
	7,000	NATIONAL PRESTO INDUSTRIES, INC.		771,050		655,200
	29,388	REGAL-BELOIT CORP.		1,474,802		1,497,906
	7,083	SAIA, INC.(b)		96,623		88,396
	8,109	SL INDUSTRIES, INC.(b)		92,589		131,366
	14,000	SNAP-ON, INC.		638,880		708,680
	32,478	SPARTON CORP.(b)		189,051		282,559
	10,254	STANDEX INTERNATIONAL CORP.		244,335		350,379
	33,552	TELEDYNE TECHNOLOGIES, INC.(b)		1,390,730		1,840,327
	35,569	TENNANT CO.		1,320,740		1,382,567
	13,500	THOMAS & BETTS CORP.(b)		602,790		737,100
	70,640	TRIUMPH GROUP, INC.		3,063,462		4,128,908
	7,658	TWIN DISC, INC.		248,307		278,138
	13,071	US ECOLOGY, INC.		221,482		245,473
	7,283	VSE CORP.		199,049		176,831
	22,662	WABTEC CORP.		708,688		1,585,207
	56,650	WCA WASTE CORP.(b)		363,693		368,791
	36,949	WOODWARD, INC.		1,047,233		1,512,323
				35,826,987		45,126,471		18.84	%
Information Technology:
	30,560	ACTUATE CORP.(b)		156,154		179,082
	35,243	ADTRAN, INC.		1,241,668		1,062,929
	99,523	ANAREN, INC.(b)		1,194,828		1,654,072
	69,077	ANCESTRY.COM, INC.(b)		1,560,973		1,586,008
	47,856	ATS CORP.(b)		204,101		149,311
	126,517	BRIDGELINE DIGITAL, INC.(b)		177,249		75,910
	32,000	BROADRIDGE FINANCIAL SOLUTIONS, INC.		543,517		721,600
	31,284	CALAMP CORP.(b)		99,494		132,957
	5,018	CALIX, INC.(b)		42,580		32,466
	38,436	CAMTEK LTD.(b)(c)		97,346		67,263
	1,946	CHECKPOINT SYSTEMS, INC.(b)		23,078		21,289
	66,440	COGNEX CORP.		2,009,628		2,377,888
	13,879	COMMTOUCH SOFTWARE LTD.(b)(c)		50,171		45,107

See accompanying notes to the financial statements. 45 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Cap Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Information Technology (Cont’d):
	56,734	COMTECH TELECOMMUNICATIONS CORP.	$	1,370,017		1,623,727
	6,336	CRAY, INC.(b)		35,888		40,994
	8,128	CRYPTOLOGIC LTD.(b)(c)		19,152		19,263
	125,961	DDI CORP.		1,140,044		1,175,216
	50,572	DYNAMICS RESEARCH CORP.(b)		374,862		573,486
	6,807	DYNASIL CORP. OF AMERICA(b)		11,077		11,844
	9,557	EASYLINK SERVICES INTERNATIONAL CORP., CLASS A(b)		31,498		38,037
	353,778	ENTROPIC COMMUNICATIONS, INC.(b)		3,066,734		1,807,806
	33,058	EVOLVING SYSTEMS, INC.		239,600		247,604
	17,411	EXAR CORP.(b)		109,732		113,172
	37,417	FRANKLIN WIRELESS CORP.(b)		96,203		56,126
	8,280	FREQUENCY ELECTRONICS, INC.(b)		46,669		63,425
	35,629	GILAT SATELLITE NETWORKS LTD.(b)(c)		137,783		140,735
	71,869	GLOBAL CASH ACCESS HOLDINGS, INC.(b)		206,558		319,817
	20,987	GLOBECOMM SYSTEMS, INC.(b)		271,810		287,102
	197,287	GSI GROUP, INC.(b)		2,325,099		2,018,246
	32,277	HACKETT GROUP (THE), INC.(b)		124,944		120,716
	50,728	INX, INC.(b)		441,842		443,870
	168,559	LOOKSMART LTD.(b)		195,677		217,441
	7,306	LTX-CREDENCE CORP.(b)		51,713		39,087
	50,295	MAGMA DESIGN AUTOMATION, INC.(b)		362,627		361,118
	33,341	MERCURY COMPUTER SYSTEMS, INC.(b)		337,086		443,102
	8,502	METHODE ELECTRONICS, INC.		91,863		70,482
	28,145	MICRONETICS, INC.(b)		144,631		221,783
	30,665	MKS INSTRUMENTS, INC.		784,846		853,100
	30,433	MODUSLINK GLOBAL SOLUTIONS, INC.		124,478		164,338
	41,800	NAPCO SECURITY TECHNOLOGIES, INC.(b)		68,377		104,082
	47,791	NETGEAR, INC.(b)		1,507,745		1,604,344
	116,854	NEWPORT CORP.(b)		2,042,626		1,590,383
	7,871	NOVA MEASURING INSTRUMENTS LTD.(b)(c)		45,313		58,009
	64,836	ONLINE RESOURCES CORP.(b)		404,222		156,903
	5,112	OPLINK COMMUNICATIONS, INC.(b)		94,868		84,195
	13,869	OSI SYSTEMS, INC.(b)		423,506		676,530
	96,576	QUEST SOFTWARE, INC.(b)		1,896,793		1,796,314
	6,310	REIS, INC.(b)		56,260		57,547
	184,563	RF MICRO DEVICES, INC.(b)		989,679		996,640
	166,156	SANMINA-SCI CORP.(b)		1,766,562		1,546,912
	33,870	SELECTICA, INC.(b)		195,859		103,981
	31,879	STEEL EXCEL, INC.(b)		954,155		765,096
	3,551	SUPER MICRO COMPUTER, INC.(b)		56,321		55,680
	27,294	SUPPORT.COM, INC.(b)		57,411		61,411
	48,814	SWK HOLDINGS CORP.(b)		35,146		40,027
	94,271	SYNNEX CORP.(b)		2,664,833		2,871,495
	20,569	THESTREET, INC.		43,058		34,556
	107,274	TIER TECHNOLOGIES, INC.(b)		702,933		467,715
	48,154	TNS, INC.(b)		1,042,760		853,289
	75,145	VALUECLICK, INC.(b)		1,136,300		1,224,112
	6,208	VISHAY PRECISION GROUP, INC.(b)		104,800		99,204
	8,681	WEB.COM GROUP, INC.(b)		60,802		99,397
	16,064	WESTELL TECHNOLOGIES, INC., CLASS A(b)		36,465		35,662
	17,000	WRIGHT EXPRESS CORP.(b)		463,372		922,760
	9,414	ZIX CORP.(b)		23,225		26,547
	3,740	ZYGO CORP.(b)		44,630		66,011
				36,461,241		35,976,321		15.02	%
	Materials:
	1,360	A. SCHULMAN, INC.		28,428		28,805
	17,000	APTARGROUP, INC.		711,338		886,890
	15,000	ASHLAND, INC.		551,175		857,400
	11,584	CORE MOLDING TECHNOLOGIES, INC.(b)		104,158		93,367
	11,500	DELTIC TIMBER CORP.		546,288		694,485
	30,831	HANDY & HARMAN LTD.(b)		154,151		305,227
	35,138	INNOPHOS HOLDINGS, INC.		1,433,464		1,706,301
	77,588	INNOSPEC, INC.(b)		2,039,897		2,177,895
	20,000	KAPSTONE PAPER AND PACKAGING CORP.(b)		145,550		314,800
	35,468	KOPPERS HOLDINGS, INC.		948,784		1,218,680
	25,504	LANDEC CORP.(b)		159,001		140,782
	33,291	LSB INDUSTRIES, INC.(b)		1,154,470		933,147
	41,458	QUAKER CHEMICAL CORP.		1,257,063		1,612,302

See accompanying notes to the financial statements. 46 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Cap Fund
December 31, 2011

Shares			Security	Cost		Fair value (a)		Percent of net assets
Materials (Cont’d):
	38,947		ROCK-TENN CO., CLASS A	$	1,257,230		2,247,242
	22,138		STEPAN CO.		1,614,755		1,774,582
	9,466		SYNALLOY CORP.		114,118		97,216
	38,819		US ANTIMONY CORP.(b)		37,871		93,166
	19,000		W.R. GRACE & CO.(b)		465,151		872,480
	7,000		WALTER ENERGY, INC.		622,023		423,920
	42,000		ZEP, INC.		601,828		587,160
					13,946,743		17,065,847		7.13	%
Utilities:
	39,680		ALLETE, INC.		1,376,905		1,665,766
	20,138		CENTRAL VERMONT PUBLIC SERVICE CORP.		705,711		706,844
	4,161		CHESAPEAKE UTILITIES CORP.		167,910		180,379
	19,000		CLECO CORP.		470,134		723,900
	15,569		CONSOLIDATED WATER CO. LTD.(c)		127,024		133,582
	13,500		ITC HOLDINGS CORP.		616,005		1,024,380
	7,844		MIDDLESEX WATER CO.		140,859		146,369
	28,746		PENNICHUCK CORP.		823,310		828,747
	68,062		PORTLAND GENERAL ELECTRIC CO.		1,471,447		1,721,288
	39,000		QUESTAR CORP.		663,326		774,540
	21,675		SOUTHWEST GAS CORP.		539,056		920,971
	32,492		UIL HOLDINGS CORP.		973,417		1,149,242
	12,795		UNITIL CORP.		278,132		363,122
	20,600		WESTAR ENERGY, INC.		562,203		592,868
					8,915,439		10,931,998		4.56	%
		Sub-total Common Stocks:			210,407,305		237,162,071		99.02	%
Short-Term Investments:
	1,896,952		NORTHERN INSTITUTIONAL GOVERNMENT SELECT PORTFOLIO, 0.01%(d)		1,896,952		1,896,952
		Sub-total Short-Term Investments:			1,896,952		1,896,952		0.79	%
			Grand total(e)	$	212,304,257		239,059,023		99.81	%

Notes to Schedule of Investments:

(a)	Securities are valued in accordance with procedures described in note 2 to the financial statements.
(b)	Currently non-income producing assets.
(c)	Foreign security values are stated in U.S. dollars. As of December 31, 2011, the value of foreign stocks or depositary receipts of companies based outside of the United States represented 3.25% of net assets.
(d)	The short-term investment is a money market portfolio of the investment company, Northern Institutional Funds. At December 31, 2010, the value of the Fund’s investment in the Government Select Portfolio of the Northern Institutional Funds was approximately $5,133,720 with net sales of approximately $3,236,768 during the fiscal year ended December 31, 2011.
(e)	At December 31, 2011, the cost for Federal income tax purposes was $212,334,630. The aggregate gross unrealized appreciation and depreciation of investments in securities based on this cost were as follows:

Gross unrealized appreciation	$	40,164,908
Gross unrealized depreciation		(13,440,515	)
Net unrealized appreciation	$	26,724,393

See accompanying notes to the financial statements. 47 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments – Clearwater Small Cap Fund
December 31, 2011

See accompanying notes to the financial statements. 48 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares			Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Closed-End Funds:
	47,200		AMERICAN MUNI INCOME PT			$	554,976		686,760
	208,600		BLACKROCK LNG-TM MUN ADV				2,133,992		2,434,362
	35,600		BLACKROCK MUN INC TRUST				373,567		541,476
	18,200		BLACKROCK MUNI BOND TRUST				169,379		286,104
	186,000		BLACKROCK MUNIHOLDINGS QU				2,175,942		2,717,460
	59,500		BLACKROCK MUNIHOLDINGS QU				749,861		850,850
	71,200		BLACKROCK MUNIYIELD INVES				905,807		1,045,928
	81,800		BLACKROCK MUNIYIELD MI QU				981,525		1,213,094
	76,179		BLACKROCK MUNIYIELD MI QU				1,014,103		1,179,251
	54,700		BLACKROCK MUNIYIELD PENNS				774,527		863,713
	28,100		BLACKROCK MUNIYIELD QUAL				333,747		384,970
	78,300		BLACKROCK MUNIYIELD QUALI				1,032,557		1,107,162
	21,837		BLACKROCK MUNIYIELD QUALI				275,930		314,671
	12,500		DREYFUS STRATEGIC MUNI BD				68,613		108,500
	209,000		DWS MUNICIPAL INCOME TRUS				2,278,136		2,884,200
	1,000		EATON VANCE CAL MUNI BOND				8,280		12,820
	66,800		EATON VANCE CALI MUN BOND				744,489		865,060
	1,100		EATON VANCE MICHI MUNI BN				15,510		16,005
	26,905		EATON VANCE MUNICIPAL INC				286,929		343,039
	68,200		INVESCO MUNICIPAL PREMIUM				515,130		607,662
	101,881		INVESCO QUALITY MUNI INC				1,164,128		1,369,281
	95,900		INVESCO QUALITY MUNI INV				1,173,337		1,361,780
	124,300		INVESCO VAN KAMPEN AD MIT				1,443,464		1,548,778
	94,239		INVESCO VAN KAMPEN PENN V				1,240,054		1,338,194
	37,800		INVESCO VAN KAMPEN S S MN				398,849		480,438
	74,277		INVESCO VAN KAMPEN TRUST				1,042,890		1,112,670
	83,800		INVESCO VAN KAMPEN TRUST				954,508		1,277,950
	56,248		MANAGED DURATION INVESTME				714,557		838,095
	6,500		MFS HIGH INCOME MUNICIPAL				23,108		34,710
	10,299		NEUBERGER BERMAN INTMD MU				126,917		163,651
	31,103		NUVEEN CAL INV QUAL MUNI				373,215		457,214
	13,700		NUVEEN CAL MUNI MKT OPPOR				157,825		200,568
	42,560		NUVEEN DIVIDEND ADV MUNI				523,323		626,058
	13,500		NUVEEN DIVIDEND ADVANTAGE				181,771		203,175
	41,700		NUVEEN DVD ADVANTAGE MUNI				475,800		607,152
	4,800		NUVEEN MA PREMIUM INC MUN				65,734		70,128
	30,600		NUVEEN MI PREMIUM INC MUN				404,605		431,766
	44,600		NUVEEN MUNI ADVANTAGE FUN				522,316		654,728
	15,500		NUVEEN NJ INV QUAL MUNI F				211,528		221,185
	10,100		NUVEEN PA DVD ADV MUNI FD				127,549		141,703
	48,500		NUVEEN PENN INV QUAL MUNI				673,352		734,290
	27,100		NUVEEN PREMIER MUNI INC F				367,653		401,351
	238,709		NUVEEN PREMIUM INC MUNI F				3,273,534		3,561,538
	216,190		PUTNAM MUNI OPPORTUNITIES				2,450,699		2,652,651
	12,700		WESTERN ASSET INTERMEDIAT				111,045		124,460
	22,000		WESTERN ASSET MANAGED MUN				240,488		295,020
	48,606		WESTERN ASSET MUNICIPAL P				620,291		746,588
		Sub-total Closed-End Funds:					34,455,540		40,118,209		7.73	%
Municipal Bonds:
	1,500,000		ABAG CA FIN AUTH FOR NONPROFIT CORPS	7/1/2037	5.75		1,441,935		1,541,925
	750,000		ABAG CA FIN AUTH FOR NONPROFIT CORPS	9/1/2037	6.00		745,092		787,110
	650,000		ABAG CA FIN AUTH FOR NONPROFIT CORPS COPS	11/1/2029	6.20		633,848		645,775
	2,500,000		ACALANES CA UNION HIGH SCH DIST(b)	8/1/2039	4.68		1,102,342		1,305,125
	1,500,000		AGUA CALIENTE CA BAND OF CAHUILLA INDIANS REVENUE (c)	7/1/2018	6.00		1,472,275		1,430,355
	1,240,000		ALABAMA ST HSG FIN AUTH SF MTGE REVENUE	10/1/2028	5.25		1,240,000		1,305,150
	580,000		ALABAMA ST HSG FIN AUTH SF MTGE REVENUE	4/1/2038	4.50		434,794		575,546
	1,250,000		ALACHUA CNTY FL HLTH FACS AUTH	11/15/2016	7.12		1,250,000		1,254,300
	500,000		ALAMEDA CA CORRIDOR TRANSPRTN AUTH	10/1/2021	5.25		495,878		500,455

See accompanying notes to the financial statements. 49 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	500,000	ALAMEDA CA CORRIDOR TRANSPRTN AUTH(b)	10/1/2024	1.60	$	415,941		472,685
	1,500,000	ALASKA ST HSG FIN CORP	6/1/2032	5.25		1,289,534		1,511,175
	2,000,000	ALASKA ST HSG FIN CORP	12/1/2034	5.25		2,005,035		2,063,220
	370,000	ALASKA ST HSG FIN CORP HOME MTGE REVENUE	12/1/2033	5.45		370,000		387,290
	895,000	ALASKA ST HSG FIN CORP HOME MTGE REVENUE	12/1/2034	5.25		892,554		931,256
	500,000	ALASKA ST HSG FIN CORP MTGE REVENUE	12/1/2040	4.63		495,098		500,310
	350,000	ALASKA ST INDL DEV & EXPORT AUTH CMNTY PROVIDER REVENUE (d)(e)	12/1/2010	5.40		350,000		237,380
	240,000	ALBANY NY INDL DEV AGY (d)	5/1/2016	6.50		240,000		55,205
	1,025,000	ALISAL CA UNION SCH DIST(b)	8/1/2025	10.55		472,721		526,788
	965,000	ALLEGHENY CNTY PA INDL DEV AUTH CHRT SCH REVENUE	8/15/2026	5.90		965,000		939,148
	480,000	ALLEGHENY CNTY PA INDL DEV AUTH CHRT SCH REVENUE	8/15/2026	5.90		404,145		476,251
	1,000,000	ALPHARETTA GA DEV AUTH EDLFACS REV	7/1/2031	6.25		972,473		949,330
	1,000,000	ALVORD CA UNIF SCH DIST(b)	8/1/2046	5.63		341,631		451,880
	988,705	ARIZONA ST HLTH FACS AUTH (e)	7/1/2027	5.25		959,699		907,374
	2,000,000	ARLINGTON TX HGR EDU FIN CORP EDU REVENUE	8/15/2028	7.00		1,949,530		1,984,280
	995,000	ARLINGTON TX SPL OBLIG	8/15/2034	5.00		1,048,974		1,035,646
	500,000	ATLANTA GA ARPT REVENUE	1/1/2030	6.00		519,745		589,890
	1,000,000	ATLANTA GA TAX ALLOCATION	1/1/2030	5.60		926,289		1,006,940
	1,500,000	ATLANTA GA WTR & WSTWTR REVENUE	11/1/2039	5.00		1,498,510		1,502,295
	630,000	AUSTIN CONVENTION ENTERPRISES INC TX CONVENTION CENTER (c)	1/1/2012	6.00		630,000		630,006
	1,500,000	AUSTIN CONVENTION ENTERPRISES INC TX CONVENTION CENTER	1/1/2016	5.25		1,481,334		1,484,895
	1,500,000	BAY CNTY FL EDUCTNL FACS REVENUE	9/1/2030	5.25		1,376,764		1,355,835
	750,000	BERKS CNTY PA MUNI AUTH	3/1/2028	5.00		751,903		750,480
	1,000,000	BEXAR CNTY TX HLTH FACS DEV CORP	7/1/2030	5.88		984,569		1,025,200
	500,000	BEXAR CNTY TX HSG FIN CORP	1/1/2021	5.70		449,291		490,020
	445,000	BEXAR CNTY TX HSG FIN CORP (d)	9/15/2021	8.75		445,000		313,240
	250,000	BEXAR CNTY TX HSG FIN CORP	12/1/2021	6.50		254,793		225,265
	805,000	BEXAR CNTY TX HSG FIN CORP (d)	4/1/2030	9.00		802,520		159,036
	600,000	BEXAR CNTY TX HSG FIN CORP	8/1/2030	6.10		520,479		569,142
	365,000	BEXAR CNTY TX HSG FIN CORP	8/1/2030	8.13		352,720		331,095
	1,005,000	BEXAR CNTY TX HSG FIN CORP (d)	6/1/2031	10.50		1,005,000		200,930
	885,000	BEXAR CNTY TX HSG FIN CORP	12/1/2036	9.25		863,905		585,295
	500,000	BOONE CNTY MO HOSP REVENUE	8/1/2028	5.75		513,739		529,420
	700,000	BOSTON MA REVENUE	10/1/2031	6.13		700,810		714,896
	750,000	BOWLING GREEN OH STUDENT HSG REVENUE	6/1/2031	5.75		718,861		751,942
	500,000	BRAZOS CNTY TX HLTH FACS DEV CORP	1/1/2033	5.50		504,337		507,085
	1,000,000	BREA CA REDEV AGY(b)	8/1/2029	13.50		298,102		298,820
	135,000	BRIDGEVILLE DE SPL OBLIG	7/1/2035	5.13		135,000		97,671
	890,000	BUCKEYE OH TOBACCO SETTLEMENT FING AUTH	6/1/2024	5.13		857,967		677,486
	1,000,000	BUTLER CNTY OH HOSP FACS	4/1/2036	6.38		1,040,596		1,098,440

See accompanying notes to the financial statements. 50 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	395,000	BUTLER CNTY PA GEN AUTH REVENUE	10/1/2034	1.09	$	395,000		240,172
	125,000	CALIFORNIA CNTY CA TOBACCO SECURITIZATION AGY TOBACCO SETTLE	6/1/2021	4.50		123,769		110,495
	500,000	CALIFORNIA CNTY CA TOBACCO SECURITIZATION AGY TOBACCO SETTLE	6/1/2036	5.00		495,120		334,965
	145,000	CALIFORNIA ST CMNTY HSG FIN AGY LEASE REVENUE (d)	8/1/2012	4.65		144,935		72,499
	385,000	CALIFORNIA ST CMNTY HSG FIN AGY LEASE REVENUE (d)	11/1/2012	4.85		383,286		192,496
	750,000	CALIFORNIA ST HLTH FACS FING AUTH REVENUE	8/15/2033	5.50		765,086		785,918
	1,000,000	CALIFORNIA ST HSG FIN AGY REVENUE	8/1/2033	5.45		926,651		977,620
	750,000	CALIFORNIA ST HSG FIN AGY REVENUE	8/1/2038	5.50		753,886		708,030
	1,000,000	CALIFORNIA ST INFRASTRUCTURE & ECON DEV BANK REVENUE	2/1/2030	6.00		1,009,201		1,074,010
	500,000	CALIFORNIA ST INFRASTRUCTURE & ECON DEV BANK ST SCH FUND APP	8/15/2029	5.75		504,798		534,045
	570,000	CALIFORNIA ST MUNI FIN AUTH CHRT SCH LEASE REVENUE	9/1/2022	5.50		574,864		556,485
	750,000	CALIFORNIA ST MUNI FIN AUTH EDUCTNL REVENUE	6/1/2026	5.25		743,891		669,525
	500,000	CALIFORNIA ST MUNI FIN AUTH REVENUE	5/1/2025	6.88		498,902		549,120
	500,000	CALIFORNIA ST MUNI FIN AUTH REVENUE	1/1/2033	5.75		514,140		523,620
	1,500,000	CALIFORNIA ST SCH FACS FING AUTH REVENUE (b)	8/1/2029	2.42		1,058,204		1,275,330
	1,000,000	CALIFORNIA ST STWD CMNTYS DEV AUTH	8/15/2028	5.50		1,002,094		1,008,560
	1,000,000	CALIFORNIA ST STWD CMNTYS DEV AUTH	11/1/2032	5.50		1,002,398		1,006,410
	200,000	CALIFORNIA ST STWD CMNTYS DEV AUTH	4/20/2036	7.00		200,000		210,326
	400,000	CALIFORNIA ST STWD CMNTYS DEV AUTH COPS	8/15/2031	5.50		372,766		400,272
	590,000	CALIFORNIA ST STWD CMNTYS DEV AUTH MF	11/20/2036	6.15		615,903		613,063
	1,335,000	CALIFORNIA ST STWD CMNTYS DEV AUTH REVENUE	1/1/2016	5.25		1,328,990		1,345,533
	700,000	CALIFORNIA ST STWD CMNTYS DEV AUTH REVENUE	6/1/2017	5.40		698,352		708,155
	1,500,000	CALIFORNIA ST STWD CMNTYS DEV AUTH REVENUE	1/1/2021	6.00		1,500,000		1,540,155
	1,000,000	CALIFORNIA ST STWD CMNTYS DEV AUTH REVENUE	11/1/2021	6.50		1,000,000		1,083,790
	750,000	CALIFORNIA ST STWD CMNTYS DEV AUTH SCH FAC REVENUE	7/1/2020	5.00		709,864		751,312
	850,000	CALIFORNIA ST STWD CMNTYS DEV AUTH SCH FAC REVENUE	7/1/2031	6.75		850,000		863,982
	750,000	CALIFORNIA ST STWD CMNTYS DEVAUTH MFH REVENUE	7/15/2032	4.70		750,000		764,790
	210,000	CAMERON TX EDU CORP REVENUE	8/15/2021	5.00		168,462		191,354
	255,000	CAPITAL TRUST AGY FL MF REVENUE (d)	6/1/2013	4.75		255,000		145,360
	750,000	CAPITAL TRUST AGY FL MF REVENUE (d)	6/1/2038	5.88		762,053		427,530
	1,000,000	CARLSBAD CA UNIF SCH DIST(b)	8/1/2031	4.17		552,128		651,700
	1,093,055	CARLSBAD NM INDL DEV REVENUE (e)	4/15/2021	5.75		1,118,851		990,330

See accompanying notes to the financial statements. 51 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	500,000	CEDAR FALLS IA CMNTY SCH DIST SCH INFRASTRUCTURE SALES SVCS	6/1/2027	5.38	$	498,685		541,740
	1,000,000	CENTER CA UNIF SCH DIST (b)	8/1/2031	12.90		318,457		295,170
	1,000,000	CENTRL BRADFORD PROGRESS AUTH PA	12/1/2031	5.50		1,038,629		1,073,470
	500,000	CENTRL TX REGL MOBILITY AUTH REVENUE	1/1/2031	5.75		495,436		507,790
	595,000	CHANDLER PARK ACADEMY MI PUBLIC SCH ACADEMY REVENUE	11/1/2022	5.00		449,385		562,085
	1,000,000	CHAUTAUQUA CNTY NY CAPITAL RESOURCE CORP REVENUE	11/15/2016	6.75		979,641		1,044,060
	275,000	CHESTERFIELD CNTY VA INDL DEV AUTH MF REVENUE	7/1/2019	5.20		258,381		275,468
	500,000	CHICAGO IL	1/1/2035	5.25		513,761		523,735
	10,000	CHICAGO IL MET HSG DEV CORP	7/1/2022	6.85		10,000		10,023
	500,000	CITIZEN POTAWATOMI NATION OK SENIOR OBLG TAX REVENUE	9/1/2016	6.50		500,000		481,220
	250,000	CLARK CNTY NV ECON DEV REVENUE	5/15/2033	5.38		252,406		252,638
	455,000	CLARK CNTY NV IMPT DIST	2/1/2019	5.00		456,254		427,272
	355,000	CLEARWATER FL HSG AUTH	5/1/2024	5.35		264,442		322,652
	720,000	CLIFTON TX HGR EDU FIN CORP EDU REVENUE	2/15/2018	7.75		711,351		782,374
	500,000	CLIFTON TX HGR EDU FIN CORP EDU REVENUE	8/15/2031	5.50		482,512		505,175
	1,000,000	CMNTY MEMORIAL HOSP DIST MO HOSP REVENUE	12/1/2034	6.68		885,979		1,074,070
	295,000	COLLIER CNTY FL HSG FIN AUTH MF HSG REVENUE	8/15/2015	5.25		294,374		296,012
	750,000	COLLIER CNTY FL INDL DEV AUTH	10/1/2039	6.25		735,458		790,845
	1,500,000	COLORADO ST EDUCTNL & CULTURAL FACS AUTH INDEP SCH REVENUE	5/1/2030	6.00		1,459,260		1,512,570
	835,000	COLORADO ST EDUCTNL & CULTURAL FACS AUTH REVENUE	11/15/2028	6.75		835,000		936,594
	2,810,670	COLORADO ST EDUCTNL & CULTURAL FACS AUTH REVENUE	11/15/2028	6.75		2,810,670		2,973,633
	1,000,000	COLORADO ST EDUCTNL & CULTURAL FACS AUTH REVENUE	6/1/2033	5.50		975,366		1,028,280
	1,000,000	COLORADO ST EDUCTNL & CULTURAL FACS AUTH REVENUE	7/1/2034	5.60		993,591		1,000,000
	350,000	COLORADO ST EDUCTNL & CULTURAL FACS AUTH REVENUE	12/1/2039	5.13		330,884		349,727
	865,000	COLORADO ST HSG & FIN AUTH	10/1/2029	5.40		865,000		912,333
	790,000	COLORADO ST HSG & FIN AUTH	11/1/2029	5.50		790,000		808,257
	625,000	COLORADO ST HSG FIN AUTH SF MTGE REVENUE	11/1/2034	5.00		625,043		640,988
	1,000,000	COLTON CA JT UNIF SCH DIST (b)	8/1/2035	3.46		554,467		597,250
	1,250,000	CONNECTICUT ST DEV AUTH POLL CONTROL REVENUE	9/1/2028	5.85		1,254,702		1,254,900
	1,000,000	CONNECTICUT ST HSG FIN AUTH	11/15/2035	4.75		1,000,000		1,021,700

See accompanying notes to the financial statements. 52 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	1,000,000	CONNECTICUT ST HSG FIN AUTH	11/15/2041	4.63	$	995,002		1,004,710
	500,000	CONNECTICUT ST HSG FIN AUTH	11/15/2041	5.00		500,000		515,950
	375,000	CONNERTON W FL CDD CAPITAL IMPT REVENUE (d)	5/1/2016	5.13		374,540		150,506
	500,000	COOK CNTY IL SCH DIST #83	6/1/2031	5.38		489,666		543,435
	1,105,000	CORONA-NORCO CA UNIF SCH DIST (b)	8/1/2039	2.24		687,438		932,344
	637,000	CORTLAND IL SPL TAX REVENUE	3/1/2017	5.50		633,485		392,456
	790,000	CROW FIN AUTH MT TRIBAL PURPOSE REVENUE	10/1/2017	5.65		764,478		792,425
	1,000,000	CULLMAN CNTY AL HLTH CARE AUTH	2/1/2023	6.25		980,369		986,200
	500,000	CUYAHOGA CNTY OH HSG MTGE REVENUE	3/20/2042	5.70		513,301		532,640
	3,287,000	DALLAS TX HSG FIN CORP	10/20/2032	6.75		3,262,541		3,357,769
	2,000,000	DAMON RUN IN CONSERVANCY DIST	7/1/2025	6.10		2,042,076		2,160,880
	1,000,000	DAMON RUN IN CONSERVANCY DIST	1/1/2027	6.38		1,016,310		1,084,500
	500,000	DAVIESS CNTY IN HOSP ASSN LEASE RENTAL REVENUE	1/15/2029	5.25		488,949		530,645
	1,000,000	DE KALB CNTY GA HOSP AUTH	9/1/2030	6.00		970,993		1,053,040
	1,000,000	DEKALB/KANE/LA SALLE CNTYS IL CMNTY CLG DIST #523(b)	2/1/2029	11.72		343,079		384,040
	500,000	DELAWARE RIVER NJ PORT AUTH	1/1/2022	5.70		500,000		501,180
	440,000	DELAWARE ST HSG AUTH REVENUE	7/1/2031	5.20		440,000		460,112
	147,417	DENHAM SPRINGS-LIVINGSTON LA HSG & MTGE FIN AUTH	11/1/2040	5.00		152,576		152,585
	500,000	DETROIT LAKES MN HSG & HLTH FACS REVENUE	8/1/2034	2.39		500,000		482,385
	500,000	DINUBA CA FING AUTH LEASE REVENUE	9/1/2038	5.38		494,738		454,325
	1,105,000	DIRECTOR OF THE ST OF NEVADA DEPT OF BUSINESS & INDUSTRY (d)	11/15/2014	6.00		1,097,305		595,264
	500,000	DIST OF COLUMBIA HSG FIN AGY MF HSG REVENUE	7/1/2033	5.45		500,000		523,015
	1,000,000	DIST OF COLUMBIA HSG FIN AGY MF HSG REVENUE	6/1/2040	4.90		1,000,000		1,004,800
	1,000,000	DIST OF COLUMBIA HSG FIN AGY MF HSG REVENUE	6/1/2041	5.00		1,000,000		1,010,880
	500,000	DISTRICT OF COLUMBIA REVENUE	6/1/2026	5.00		506,843		443,760
	3,000,000	DUBLIN CA UNIF SCH DIST (b)	8/1/2034	15.06		726,437		732,660
	225,000	E BATON ROUGE LA MTGE FIN AUTH SF REVENUE	10/1/2034	5.00		225,000		232,162
	550,000	E CHICAGO IN REDEV COMMISSION LAKE FRONT REDEV AREA TAX	7/15/2014	5.00		550,000		548,559
	565,000	E CHICAGO IN REDEV COMMISSION LAKE FRONT REDEV AREA TAX	1/15/2015	5.25		565,000		562,011
	500,000	E-470 CO PUBLIC HIGHWAY AUTH	9/1/2024	5.50		504,267		512,795
	945,000	EAST POINT GA	2/1/2026	8.00		987,073		951,483
	800,000	EDEN PRAIRIE MN MF HSG REVENUE	2/20/2043	6.20		837,132		840,792
	2,045,000	EDEN TWP CA HOSP DIST COPS	6/1/2030	6.00		2,022,422		2,084,100
	750,000	EL PASO DE ROBLES CA REDEV AGY TAX ALLOCATION REVENUE	7/1/2033	6.38		741,731		825,675
	705,268	EL PASO TX HSG FIN CORP	4/1/2033	6.18		730,093		736,131
	500,000	ELKHART CNTY IN HOSP AUTH	8/15/2020	5.25		500,000		500,670

See accompanying notes to the financial statements. 53 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	2,000,000	EMERY CNTY UT POLL CONTROL REVENUE	11/1/2023	5.65	$	2,000,000		2,001,580
	1,000,000	ENCINITAS CA UNION SCH DIST(b)	8/1/2035	4.54		488,850		621,020
	1,155,000	ENTERPRISE CA ELEM SCH DIST (b)	8/1/2035	3.73		618,412		695,206
	1,000,000	ERIE CNTY PA HOSP AUTH	7/1/2027	7.00		1,000,000		1,023,580
	500,000	ESTHERVILLE IA HOSP REVENUE	7/1/2020	6.30		501,268		503,370
	500,000	FAIRFAX CNTY VA REDEV & HSG AUTH MF REVENUE	8/1/2039	5.60		500,000		529,390
	239,000	FARMS NEW KENT VA CMNTY DEV AUTH SPL ASSMNT	3/1/2036	5.13		239,000		144,585
	1,000,000	FESTIVAL RANCH AZ CMNTY FACS DIST	7/15/2024	6.25		1,014,946		1,075,040
	315,000	FIDDLERS CREEK FL CDD #2 SPL ASSMNT REVENUE (d)	5/1/2013	5.75		314,118		165,186
	850,000	FLAGSTAFF AZ INDL DEV AUTH	7/1/2022	5.50		786,001		791,528
	250,000	FLORIDA ST HGR EDUCTNL FACS FINANCIAL AUTH REVENUE	7/1/2032	5.38		252,960		265,132
	500,000	FLORIDA ST HSG FIN CORP REVENUE	7/1/2026	5.00		501,743		531,295
	390,000	FLORIDA ST HSG FIN CORP REVENUE	1/1/2027	5.05		390,000		414,184
	375,000	FLORIDA ST HSG FIN CORP REVENUE	7/1/2033	5.45		375,000		391,455
	1,710,000	FLORIDA ST HSG FIN CORP REVENUE	7/1/2034	5.30		1,726,618		1,770,790
	500,000	FLORIDA ST MID-BAY BRIDGE AUTH(b)	10/1/2021	9.78		258,672		251,535
	490,000	FOREST CREEK FL CDD CAPITAL IMPT REVENUE	11/1/2013	7.00		579,929		478,157
	1,250,000	FORT SILL APACHE TRIBE OK ECONDEV AUTH GAMING ENTERPRISE REV	8/25/2026	8.50		1,250,000		1,250,988
	1,145,000	FULTON CNTY GA DEV AUTH	11/1/2028	5.25		982,618		925,297
	1,000,000	FYI PROPERTIES WA LEASE REVENUE	6/1/2034	5.50		980,972		1,084,750
	500,000	GAINESVILLE & HALL CNTY GA DEV AUTH RETMNT CMNTY REVENUE	11/15/2029	6.38		514,738		538,535
	1,206,508	GALVESTON TX MUNI UTILITY DIST #52(e)	3/1/2011	6.16		1,206,508		964,241
	400,000	GEISINGER PA AUTH	5/1/2037	1.06		400,000		259,656
	500,000	GEORGIA ST ENVRNMNTL LOAN ACQUISITION CORP LOC GOVT LOAN SEC	2/15/2031	5.13		495,488		541,040
	3,000,000	GEORGIA ST ENVRNMNTL LOAN ACQUISITION CORP LOC GOVT LOAN SEC	3/15/2031	5.13		3,000,000		3,283,920
	500,000	GEORGIA ST ENVRNMNTL LOAN ACQUISITION CORP LOC GOVT LOAN SEC	2/15/2036	5.25		491,601		543,380
	500,000	GILA CNTY AZ UNIF SCH DIST #10 PAYSON	7/1/2028	5.75		477,532		557,235
	2,000,000	GLENDALE CA UNIF SCH DIST(b)	9/1/2028	11.02		710,240		742,040
	1,000,000	GREENWOOD CNTY SC HOSP REVENUE	10/1/2031	5.50		1,003,500		1,001,130
	1,000,000	HAMDEN CT FAC REVENUE	1/1/2014	6.13		991,209		1,000,750
	1,250,000	HAMILTON CNTY OH HLTH CARE REVENUE	1/1/2031	6.13		1,215,818		1,274,275
	1,000,000	HAMMOND IN LOCAL PUBLIC IMPT BOND BANK SPL REVENUE	8/15/2025	6.50		1,019,219		1,039,360

See accompanying notes to the financial statements. 54 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	1,000,000	HAMMOND IN LOCAL PUBLIC IMPT BOND BANK SPL REVENUE	8/15/2030	6.50	$	1,009,579		1,025,460
	500,000	HAMMOND IN REDEV DIST REVENUE	1/15/2017	6.00		500,000		505,650
	1,250,000	HARRIS CNTY TX CULTURAL EDU FACS FIN CORP REVENUE (c)	8/15/2021	6.75		1,250,000		1,332,525
	1,500,000	HARTNELL CA CMNTY CLG DIST (b)	8/1/2034	5.71		671,093		943,485
	500,000	HARVEY IL	12/1/2027	5.50		450,845		435,590
	1,000,000	HAWAII ST DEPT OF BUDGET & FIN SPL PURPOSE REVENUE	11/15/2023	7.88		969,749		1,040,990
	1,500,000	HAWAII ST DEPT OF BUDGET & FIN SPL PURPOSE REVENUE	11/15/2033	8.00		1,566,624		1,555,320
	200,000	HAWAII ST DEPT OF BUDGET & FIN SPL PURPOSE SENIOR LIVING REV	11/15/2014	6.40		200,000		200,994
	590,000	HAWAII ST DEPT OF BUDGET & FIN SPL PURPOSE SENIOR LIVING REV	11/15/2029	8.75		582,036		674,028
	1,000,000	HAWTHORNE CA SCH DIST (b)	11/1/2026	11.90		378,584		422,640
	2,000,000	HAWTHORNE CA SCH DIST COPS (b)	12/1/2029	1.69		1,539,644		1,829,880
	1,000,000	HEALDSBURG CA REDEV AGY TAX ALLOCATION	8/1/2034	5.38		990,255		1,083,930
	1,000,000	HELENDALE CA SCH DIST (b)	8/1/2034	3.31		578,573		714,080
	255,000	HIGHLANDS CNTY FL HLTH FACS AUTH	11/15/2027	5.00		257,095		265,266
	500,000	HIGHLANDS CNTY FL HLTH FACS AUTH	11/15/2032	5.13		501,393		509,790
	219,000	HOUMA-TERREBONNE LA PUBLIC TRUST FING AUTH SF MTGE	12/1/2040	5.15		227,652		227,239
	1,000,000	IDAHO ST HSG & FIN ASSN ECON DEV REVENUE	2/1/2026	6.50		1,000,000		1,054,610
	245,000	IDAHO ST HSG & FIN ASSN NONPROFIT FACS REVENUE	8/1/2017	6.25		245,000		241,141
	750,000	IDAHO ST HSG & FIN ASSN NONPROFIT FACS REVENUE	7/1/2030	5.50		750,000		668,468
	655,000	IDAHO ST HSG & FIN ASSN SF MTGE REVENUE	7/1/2026	5.65		669,689		688,890
	295,000	IDAHO ST HSG & FIN ASSN SF MTGE REVENUE	7/1/2038	5.50		295,000		311,302
	195,000	IDAHO ST HSG & FIN ASSN SF MTGE REVENUE	1/1/2040	5.50		195,000		203,118
	900,000	ILLINOIS ST COPS	7/1/2017	5.80		900,000		900,567
	250,000	ILLINOIS ST DEV FIN AUTH	5/15/2021	5.50		250,000		250,192
	1,000,000	ILLINOIS ST FIN AUTH CHRT SCH REVENUE	10/1/2031	6.88		1,000,000		1,017,040
	600,000	ILLINOIS ST FIN AUTH EDU REVENUE	9/1/2027	5.00		567,890		494,802
	500,000	ILLINOIS ST FIN AUTH REVENUE	5/15/2012	5.10		499,817		499,350
	1,000,000	ILLINOIS ST FIN AUTH REVENUE	5/15/2017	6.00		1,000,000		999,950
	350,000	ILLINOIS ST FIN AUTH REVENUE	8/15/2023	6.00		361,539		366,296
	610,000	ILLINOIS ST FIN AUTH REVENUE	8/15/2026	6.00		621,838		530,968
	1,000,000	ILLINOIS ST FIN AUTH REVENUE	11/15/2026	5.25		970,233		909,390
	250,000	ILLINOIS ST FIN AUTH REVENUE	11/15/2026	5.75		251,846		261,888
	500,000	ILLINOIS ST FIN AUTH REVENUE	3/15/2027	5.00		518,174		510,760
	500,000	ILLINOIS ST FIN AUTH REVENUE	5/15/2029	5.25		505,397		509,730

See accompanying notes to the financial statements. 55 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	1,500,000	ILLINOIS ST FIN AUTH REVENUE	8/15/2036	5.25	$	1,474,439		1,465,455
	150,000	ILLINOIS ST FIN AUTH REVENUE	12/1/2036	5.00		151,229		132,132
	805,000	ILLINOIS ST FIN AUTH REVENUE	2/1/2037	5.25		800,597		736,897
	500,000	ILLINOIS ST FIN AUTH REVENUE	3/1/2038	6.00		485,220		547,090
	750,000	ILLINOIS ST FIN AUTH SPORTS FAC REVENUE (c)(d)	10/1/2027	6.13		730,795		75,000
	500,000	ILLINOIS ST FIN AUTH SPORTS FAC REVENUE (c)(d)	10/1/2037	6.25		484,210		50,000
	1,500,000	ILLINOIS ST FIN AUTH STUDENT HSG REVENUE	10/1/2024	6.00		1,483,506		1,580,190
	490,000	ILLINOIS ST HLTH FACS AUTH	5/15/2014	6.25		490,000		491,475
	750,000	ILLINOIS ST HLTH FACS AUTH	8/15/2028	5.38		737,871		750,188
	500,000	ILLINOIS ST HLTH FACS AUTH REVENUE	7/1/2033	6.00		508,050		510,270
	2,100,000	ILLINOIS ST HLTH FACS AUTH REVENUE	8/15/2033	5.10		2,120,669		2,114,847
	1,000,000	IMPERIAL CA CMNTY CLG DIST (b)	8/1/2040	1.12		803,038		914,340
	250,000	INDEPENDENCE MO THIRTY-NINTH STREET TRANSPRTN DIST REVENUE	9/1/2032	6.88		250,000		244,445
	500,000	INDIANA ST BOND BANK REVENUE	2/1/2029	5.50		490,746		539,145
	1,750,000	INDIANA ST FIN AUTH HOSP REVENUE	5/1/2031	5.75		1,807,890		1,867,250
	1,000,000	INDIANA ST FIN AUTH REVENUE	10/1/2021	6.00		1,000,000		1,026,040
	3,000,000	INDIANA ST FIN AUTH REVENUE	9/15/2030	6.50		3,086,480		3,090,930
	500,000	INDIANA ST FIN AUTH REVENUE	11/15/2031	5.50		492,253		506,425
	1,000,000	INDIANA ST HLTH & EDUCTNL FAC FING AUTH HOSP REVENUE	2/15/2030	5.25		746,831		1,013,240
	1,315,000	INDIANA ST HLTH FAC FING AUTH	8/15/2018	5.00		1,203,686		1,316,315
	6,686,652	INTERMEDIATE SCH DIST #287 MN LEASE REVENUE	11/1/2032	5.30		6,454,766		6,798,720
	400,000	IOWA ST FIN AUTH SENIOR HSG REVENUE	12/1/2014	5.00		398,592		347,440
	1,000,000	IOWA ST STUDENT LOAN LIQUIDITY CORP	12/1/2027	5.50		978,216		1,044,280
	395,000	JACKSONVILLE FL ECON DEV COMMISSION HLTH CARE FACS REVENUE	9/1/2017	6.00		395,000		422,437
	2,000,000	JEFFERSON CA UNION HIGH SCH DIST SAN MATEO CNTY (b)	8/1/2031	26.18		388,784		419,100
	859,000	JEFFERSON CNTY KY MTGE REVENUE	11/15/2013	6.13		859,000		861,242
	120,000	JEFFERSON PARISH LA FIN AUTH	6/1/2033	5.00		125,754		123,768
	990,000	JEFFERSON PARISH LA FIN AUTH	6/1/2038	5.00		1,032,591		1,032,649
	215,000	JEFFERSON PARISH LA FIN AUTH	12/1/2048	5.70		225,230		230,751
	1,690,000	KALISPEL TRIBE OF INDIANS PRIORITY DIST WA REVENUE	1/1/2016	6.20		1,646,669		1,607,274
	1,250,000	KANSAS CITY MO INDL DEV AUTH	9/1/2023	5.45		1,250,000		1,308,150
	1,000,000	KANSAS CITY MO INDL DEV AUTH	11/20/2039	5.10		1,000,000		1,031,520
	1,000,000	KANSAS ST DEV FIN AUTH HOSP REVENUE	11/15/2029	5.50		977,688		1,107,550
	500,000	KENTUCKY ST ECON DEV FIN AUTH MF HSG REVENUE	11/20/2035	5.38		500,000		529,285

See accompanying notes to the financial statements. 56 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	470,000	KENTUCKY ST HSG CORP HSG REVENUE	7/1/2039	5.15	$	470,000		488,979
	1,980,000	KERRVILLE TX HLTH FACS DEV CORP HOSP REVENUE	8/15/2035	5.45		1,953,813		1,918,521
	750,000	KING CNTY WA HSG AUTH	5/1/2028	5.20		750,000		797,558
	500,000	KIRKWOOD MO INDL DEV AUTH RETMNT CMNTY REVENUE	11/15/2015	7.00		500,000		501,050
	500,000	KIRKWOOD MO INDL DEV AUTH RETMNT CMNTY REVENUE	5/15/2021	8.00		500,000		533,830
	900,000	KLICKITAT CNTY WA PUBLIC HOSP DIST #2 HOSP REVENUE	12/1/2020	6.00		838,369		856,413
	2,500,000	KOYUKUK AK REVENUE	10/1/2023	7.00		2,426,784		2,542,925
	1,390,000	KREMMLING CO MEMORIAL HOSP DIST COPS	12/1/2022	6.00		1,376,306		1,393,225
	1,500,000	LA MIRADA CA REDEV AGY(b)	8/15/2027	14.17		493,469		526,830
	410,000	LA VERNIA TX HGR EDU FIN CORP EDU REVENUE	2/15/2018	6.00		410,000		411,747
	1,007,000	LAFAYETTE LA PUBLIC TRUST FING AUTH SF MTGE	1/1/2041	5.35		1,028,292		1,031,339
	750,000	LAKESIDE 370 MO LEVEE DIST	4/1/2028	7.00		750,000		729,368
	2,000,000	LAKEWOOD RANCH FL STEWARDSHIP DIST SPL ASSMNT REVENUE	5/1/2030	7.40		1,980,157		2,048,380
	2,000,000	LAS VEGAS NV REDEV AGY TAX INCR REVENUE	6/15/2023	7.50		1,980,833		2,344,720
	750,000	LEE CNTY FL INDL DEV AUTH	6/15/2027	5.25		753,134		683,978
	1,000,000	LEE CNTY FL INDL DEV AUTH	11/15/2029	5.00		830,787		846,460
	1,000,000	LEHIGH CNTY PA GEN PURPOSE AUTH	12/15/2023	6.00		911,221		939,080
	250,000	LEHIGH CNTY PA GEN PURPOSE AUTH	8/15/2042	1.32		250,000		141,415
	500,000	LEXINGTON OAKS FL CDD SPL ASSMNT REVENUE	5/1/2033	5.65		500,000		508,175
	500,000	LOMBARD IL PUBLIC FACS CORP CONFERENCE CENTER & HOTEL REVENU	1/1/2015	6.38		500,000		362,010
	550,000	LOMBARD IL PUBLIC FACS CORP CONFERENCE CENTER & HOTEL REVENU	1/1/2030	5.50		572,760		327,486
	1,750,000	LOMBARD IL PUBLIC FACS CORP CONFERENCE CENTER & HOTEL REVENU	1/1/2036	5.25		1,771,784		1,239,402
	250,000	LOMPOC CA HLTHCARE DIST	8/1/2034	5.00		251,804		251,072
	1,000,000	LOS ANGELES CA COPS	2/1/2027	5.00		1,000,039		1,000,900
	2,000,000	LOS ANGELES CA HSG AUTH	6/1/2029	5.00		1,704,769		1,771,760
	500,000	LOUDOUN CNTY VA INDL DEV AUTH RSDL CARE FAC REVENUE	8/1/2028	7.00		500,000		499,935
	500,000	LOUISIANA ST HSG FIN AGY SF MTGE REVENUE	12/1/2034	5.10		500,000		521,870
	240,000	LOUISIANA ST HSG FIN AGY SF MTGE REVENUE	6/1/2038	5.85		253,214		250,195
	1,105,000	LOUISIANA ST HSG FIN AGY SF MTGE REVENUE	12/1/2038	5.70		1,148,644		1,161,024
	235,000	LOUISIANA ST HSG FIN AGY SF MTGE REVENUE	6/1/2039	5.60		242,475		256,171
	420,000	LOUISIANA ST LOCAL GOVT ENVRNMNTL FACS & CMNTY DEV AUTH	6/20/2028	8.00		420,000		360,612
	500,000	LOUISIANA ST PUBLIC FACS AUTH HOSP REVENUE	7/1/2024	6.75		511,475		530,295
	750,000	LOUISIANA ST PUBLIC FACS AUTH REVENUE	5/1/2031	6.50		746,655		796,808
	500,000	LOUISIANA ST PUBLIC FACS AUTH REVENUE	2/15/2036	1.00		500,000		358,585

See accompanying notes to the financial statements. 57 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	1,000,000	LOUISIANA ST TRANSPRTN AUTH TOLL REVENUE(b)	12/1/2027	9.18	$	414,198		425,520
	500,000	LUCAS CNTY OH HLTH CARE FACS REVENUE	8/15/2030	5.50		491,378		508,185
	1,495,000	LUZERNE CNTY PA	11/1/2026	7.00		1,588,290		1,752,319
	418,312	LYONS CO	11/30/2016	4.75		421,120		408,277
	1,000,000	MACON CNTY IL SCH DIST #61	1/1/2037	5.25		1,033,969		1,063,390
	1,000,000	MADERA CA IRR FING AUTH REVENUE	1/1/2031	6.25		978,156		1,066,000
	440,000	MADISON CNTY FL	7/1/2025	6.00		433,992		404,197
	250,000	MAGNOLIA CREEK FL CDD CAPITAL IMPT REVENUE (d)	5/1/2014	5.60		250,000		100,012
	725,000	MAINE ST EDUCTNL AUTH STUDENT LOAN REVENUE	12/1/2027	5.63		725,000		793,150
	1,000,000	MAINE ST HLTH & HGR EDUCTNL FACS AUTH REVENUE	7/1/2026	6.00		999,508		1,024,720
	1,000,000	MAINE ST HLTH & HGR EDUCTNL FACS AUTH REVENUE	7/1/2032	7.50		1,057,614		1,104,280
	1,000,000	MAINE ST TECH CLG SYS COPS	1/1/2017	5.80		1,000,000		1,003,910
	1,000,000	MALTA IL TAX INCR REVENUE	12/30/2025	5.75		1,000,000		667,630
	500,000	MANATEE CNTY FL SCH BRD	7/1/2031	5.63		495,579		546,340
	500,000	MANCHESTER NH HSG & REDEV AUTH REVENUE	1/1/2015	6.75		495,510		480,915
	500,000	MANCHESTER NH HSG & REDEV AUTH REVENUE (b)	1/1/2020	7.87		322,940		235,010
	452,000	MANHATTAN IL SPL SVC AREA SPL TAX(d)	3/1/2022	5.75		452,000		135,758
	500,000	MANSFIELD OH	12/1/2024	6.00		523,996		581,100
	750,000	MANTECA CA FING AUTH SWR REVENUE	12/1/2033	5.00		694,783		755,640
	300,000	MARICOPA CNTY AZ ELEM SCH DIST #21 MURPHY	7/1/2024	8.00		307,537		341,256
	439,000	MARQUIS VA CMNTY DEV AUTH REVENUE	9/1/2013	5.10		439,000		361,345
	750,000	MARTINEZ CA UNIF SCH DIST(b)	8/1/2035	0.87		622,136		713,640
	500,000	MARYLAND ST CMNTY DEV ADMIN DEPT HSG & CMNTY DEV	9/1/2030	5.13		500,000		527,465
	500,000	MARYLAND ST CMNTY DEV ADMIN DEPT HSG & CMNTY DEV	7/1/2031	4.50		500,000		504,815
	1,000,000	MARYLAND ST HLTH & HGR EDUCTNL FACS AUTH REVENUE	1/1/2026	6.00		1,026,373		1,049,850
	1,000,000	MARYLAND ST HLTH & HGR EDUCTNL FACS AUTH REVENUE	1/1/2031	6.25		1,018,490		1,043,760
	500,000	MASHANTUCKET WSTRN PEQUOT TRIBE CT (c)(d)	9/1/2036	5.50		509,035		182,935
	1,000,000	MASSACHUSETTS ST DEV FIN AGY REVENUE	7/1/2030	6.38		986,585		1,060,530
	290,000	MASSACHUSETTS ST DEV FIN AGY SENIOR LIVING FAC REVENUE	6/1/2014	6.25		290,000		289,986
	455,000	MASSACHUSETTS ST EDUCTNL FING AUTH	1/1/2027	5.20		455,000		494,348
	2,280,000	MASSACHUSETTS ST EDUCTNL FING AUTH	1/1/2028	5.25		2,285,517		2,441,287
	1,330,000	MASSACHUSETTS ST HLTH & EDUCTNL FACS AUTH	7/1/2013	7.30		1,330,000		1,335,586
	500,000	MASSACHUSETTS ST HLTH & EDUCTNL FACS AUTH REVENUE	7/1/2022	6.00		505,000		505,690
	1,000,000	MASSACHUSETTS ST HSG FIN AGY	12/1/2033	5.35		1,000,000		1,044,630

See accompanying notes to the financial statements. 58 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	750,000	MASSACHUSETTS ST HSG FIN AGY	12/1/2037	5.40	$	763,276		782,572
	960,000	MASSACHUSETTS ST HSG FIN AGY	6/1/2040	5.05		960,000		990,998
	1,750,000	MCALESTER OK PUBLIC WKS AUTH UTILITY SYS REVENUE (b)	2/1/2030	11.04		633,260		633,745
	160,000	MEAD NE TAX INCR REVENUE(d)	7/1/2012	5.13		160,000		138,709
	1,000,000	MESQUITE TX HLTH FAC DEV CORP	2/15/2025	5.50		998,063		1,000,290
	1,070,000	MET GOVT NASHVILLE & DAVIDSON CNTY TN HLTH & EDUCTNL FAC BRD (d)	12/20/2020	8.00		1,070,000		534,968
	855,000	MET GOVT NASHVILLE & DAVIDSON CNTY TN HLTH & EDUCTNL FAC BRD (d)	6/20/2036	10.00		855,000		420,720
	1,830,000	MET GOVT NASHVILLE & DAVIDSON CNTY TN HLTH & EDUCTNL FAC BRD (d)	12/20/2040	7.50		1,830,000		1,063,285
	2,000,000	MET WASHINGTON DC ARPTS AUTH DULES TOLL ROAD REVENUE (b)	10/1/2041	1.80		1,310,697		1,728,460
	500,000	MIAMI-DADE CNTY FL HLTH FACS AUTH HOSP REVENUE	8/1/2030	6.00		485,796		542,525
	1,500,000	MIAMI-DADE CNTY FL SPL OBLG (b)	10/1/2026	10.87		608,848		619,935
	500,000	MICHIGAN ST FIN AUTH LTD OBLGREVENUE	10/1/2021	6.00		496,309		502,875
	1,000,000	MICHIGAN ST HOSP FIN AUTH	12/1/2023	6.13		989,561		1,172,110
	1,000,000	MICHIGAN ST HOSP FIN AUTH	4/1/2032	5.75		1,008,891		1,014,130
	1,500,000	MICHIGAN ST HOSP FIN AUTH	6/1/2034	6.13		1,565,705		1,607,295
	625,000	MICHIGAN ST HSG DEV AUTH	10/1/2020	5.38		600,638		681,050
	1,000,000	MICHIGAN ST HSG DEV AUTH	10/1/2034	5.63		1,000,000		1,049,370
	1,000,000	MICHIGAN ST MUNI BOND AUTH	5/1/2023	5.75		1,026,987		1,188,310
	850,000	MICHIGAN ST PUBLIC EDUCTNL FACS AUTH (c)	9/1/2016	6.00		846,955		771,494
	750,000	MICHIGAN ST PUBLIC EDUCTNL FACS AUTH	6/1/2020	6.00		743,844		747,022
	475,000	MICHIGAN ST PUBLIC EDUCTNL FACS AUTH	9/1/2021	8.00		475,000		433,262
	300,000	MICHIGAN ST PUBLIC EDUCTNL FACS AUTH	9/1/2022	5.00		300,000		272,178
	450,000	MICHIGAN ST PUBLIC EDUCTNL FACS AUTH	10/1/2023	6.25		450,000		409,774
	500,000	MICHIGAN ST PUBLIC EDUCTNL FACS AUTH	11/1/2028	6.35		500,000		494,955
	310,000	MICHIGAN ST TOBACCO SETTLEMENT FIN AUTH	6/1/2022	5.13		291,132		263,596
	496,000	MILLSBORO DE SPL OBLG	7/1/2036	5.45		496,000		370,343
	2,500,000	MINNEAPOLIS MN MF REVENUE	11/1/2013	6.00		2,489,148		2,479,350
	389,838	MINNESOTA ST HGR EDU FACS AUTH REVENUE	10/1/2016	4.49		391,878		396,777
	190,000	MINNESOTA ST HSG FIN AGY	1/1/2020	5.00		183,311		190,262
	475,000	MINNESOTA ST HSG FIN AGY	7/1/2034	5.05		475,000		491,905
	945,000	MINNESOTA ST HSG FIN AGY	1/1/2040	5.10		945,000		975,665
	1,000,000	MINNESOTA ST OFFICE OF HGR EDU REVENUE	11/1/2029	5.00		1,000,000		1,071,460
	1,000,000	MISSISSIPPI ST DEV BANK SPL OBLG	10/1/2031	6.50		972,846		1,077,730
	245,000	MISSISSIPPI ST HOME CORP SF MTGE REVENUE	6/1/2039	6.75		258,321		263,936
	500,000	MISSOURI ST DEV FIN BRD	11/1/2025	5.50		492,362		521,935
	500,000	MISSOURI ST DEV FIN BRD	4/1/2027	6.00		502,663		513,855

See accompanying notes to the financial statements. 59 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	500,000	MISSOURI ST DEV FIN BRD	10/1/2027	6.13	$	484,990		520,335
	500,000	MISSOURI ST DEV FIN BRD INFRASTRUCTURE FACS LEASEHOLD	6/1/2029	5.63		487,236		515,630
	980,000	MISSOURI ST HLTH & EDUCTNL FACS AUTH	2/1/2022	5.13		1,003,252		1,017,877
	500,000	MISSOURI ST HLTH & EDUCTNL FACS AUTH	2/1/2035	5.38		498,318		481,115
	265,000	MISSOURI ST HSG DEV COMMISSION SF HSG REVENUE	9/1/2034	5.25		263,262		277,330
	360,000	MISSOURI ST HSG DEV COMMISSION SF HSG REVENUE	9/1/2034	5.35		360,000		379,454
	1,000,000	MOBERLY MO INDL DEV AUTH	9/1/2024	6.00		1,016,984		400,170
	1,000,000	MOHAVE CNTY AZ INDL DEV AUTH CORRNL FACS	5/1/2015	7.25		994,741		1,049,630
	1,320,000	MONTANA ST BRD OF HSG	12/1/2039	5.50		1,320,189		1,383,096
	500,000	MONTGOMERY CNTY MD HSG OPPORTUNITIES COMMISSION MF REVENUE	7/1/2037	5.13		500,000		513,940
	2,000,000	MONTGOMERY CNTY MD HSG OPPORTUNITIES COMMISSION SF MTGE REVE(b)	7/1/2028	9.13		809,157		798,000
	1,500,000	MONTGOMERY CNTY OH HLTH CARE FACS REVENUE	9/20/2032	6.55		1,458,532		1,517,130
	650,000	MONTGOMERY CNTY PA INDL DEV AUTH	2/1/2014	5.38		648,418		635,290
	375,000	MONTGOMERY CNTY PA INDL DEV AUTH	2/1/2028	6.13		370,280		332,040
	800,000	MOUNT CARBON CO MET DIST REVENUE	6/1/2043	7.00		800,000		230,360
	200,000	MOUNT CARBON CO MET DIST REVENUE	6/1/2043	8.00		-		20,000
	1,000,000	MOUNT LEBANON PA HOSP AUTH	7/1/2032	5.63		1,002,022		1,003,560
	350,000	N RANGE CO MET DIST #1	12/15/2024	5.00		358,152		284,456
	500,000	N TX TOLLWAY AUTH DALLAS N TOLLWAY SYS REVENUE	1/1/2025	6.00		500,000		577,375
	1,000,000	N TX TOLLWAY AUTH REVENUE (b)	1/1/2028	10.85		394,413		446,680
	1,000,000	N TX TOLLWAY AUTH REVENUE	1/1/2034	6.00		1,000,000		1,119,460
	1,000,000	N TX TOLLWAY AUTH REVENUE (b)	1/1/2042	1.40		708,062		954,740
	1,000,000	NATRONA CNTY WY HOSP REVENUE	9/15/2031	6.35		1,000,000		1,084,730
	500,000	NEBRASKA ST INVESTMENT FIN AUTH SF HSG REVENUE	9/1/2036	5.90		500,000		544,885
	300,000	NEVADA ST HSG DIV SF MTGE REVENUE	10/1/2039	5.38		300,000		310,545
	1,150,000	NEVADA ST HSG DIV SF MTGE REVENUE	10/1/2040	5.10		1,150,000		1,185,466
	1,000,000	NEW HAMPSHIRE ST HLTH & EDU FACS AUTH HOSP REVENUE	10/1/2024	5.00		986,395		1,016,680
	1,250,000	NEW HAMPSHIRE ST HLTH & EDU FACS AUTH REVENUE	1/1/2034	6.00		1,211,309		1,325,775
	500,000	NEW HAMPSHIRE ST HLTH & EDU FACS AUTH REVENUE	8/1/2038	6.00		490,221		548,065
	1,000,000	NEW HAMPSHIRE ST HSG FIN AUTH MF REVENUE	7/1/2031	5.20		1,000,000		1,051,590
	745,000	NEW HAMPSHIRE ST HSG FIN AUTH SF REVENUE	7/1/2034	5.38		745,000		781,051
	690,000	NEW HAMPSHIRE ST HSG FIN AUTH SF REVENUE	7/1/2038	6.63		721,815		760,276

See accompanying notes to the financial statements. 60 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	500,000	NEW JERSEY ST HGR EDU ASSISTANCE AUTH	6/1/2024	5.38	$	497,522		547,200
	2,500,000	NEW JERSEY ST HGR EDU ASSISTANCE AUTH	6/1/2027	5.00		2,496,598		2,572,425
	2,500,000	NEW JERSEY ST HLTH CARE FACS FING AUTH	7/1/2016	6.25		2,500,000		2,506,575
	1,000,000	NEW JERSEY ST HSG & MTGE FIN AGY	10/1/2030	4.50		1,000,000		1,006,220
	500,000	NEW JERSEY ST HSG & MTGE FIN AGY	10/1/2030	6.45		533,750		538,990
	925,000	NEW JERSEY ST HSG & MTGE FIN AGY	10/1/2034	5.00		925,000		951,557
	800,000	NEW JERSEY ST HSG & MTGE FIN AGY	10/1/2035	5.00		800,000		821,576
	2,335,000	NEW JERSEY ST HSG & MTGE FIN AGY	10/1/2037	5.00		2,318,134		2,400,146
	1,000,000	NEW JERSEY ST HSG & MTGE FIN AGY MF REVENUE	5/1/2041	4.95		969,829		1,017,480
	2,250,000	NEW JERSEY ST TRANSPRTN TRUST FUND AUTH (b)	12/15/2025	9.43		1,006,191		1,132,538
	500,000	NEW JERSEY ST TRANSPRTN TRUST FUND AUTH	6/15/2036	5.25		511,201		538,600
	465,000	NEW MEXICO ST MTGE FIN AUTH	9/1/2029	4.80		465,000		478,894
	940,000	NEW MEXICO ST MTGE FIN AUTH	9/1/2029	5.00		940,000		978,408
	925,000	NEW MEXICO ST MTGE FIN AUTH	9/1/2034	5.00		925,000		965,025
	945,000	NEW MEXICO ST MTGE FIN AUTH	3/1/2036	5.45		945,000		993,516
	750,000	NEW ORLEANS LA SEWAGE SVC REVENUE	6/1/2024	6.00		740,277		847,860
	115,000	NEW RIVER FL CDD CAPITAL IMPT REVENUE (d)	5/1/2013	5.00		114,821		1
	70,000	NEW RIVER FL CDD CAPITAL IMPT REVENUE (b)	5/1/2015	1.20		65,110		59,024
	135,000	NEW RIVER FL CDD CAPITAL IMPT REVENUE (b)	5/1/2018	1.37		119,235		59,175
	70,000	NEW RIVER FL CDD CAPITAL IMPT REVENUE (b)	5/1/2038	0.37		62,928		42,685
	175,000	NEW RIVER FL CDD CAPITAL IMPT REVENUE (b)	5/1/2038	0.80		141,109		67,540
	250,000	NEW YORK CITY NY INDL DEV AGY REVENUE	1/1/2029	6.13		246,739		274,015
	320,000	NEW YORK ST DORM AUTH REVENUES	7/1/2019	6.88		321,623		324,128
	1,000,000	NEW YORK ST DORM AUTH REVENUES	8/15/2024	6.45		998,478		1,018,630
	1,820,000	NEW YORK ST MED CARE FACS FIN AGY	2/15/2035	6.38		1,802,751		1,826,607
	450,000	NOBLESVILLE IN REDEV AUTH ECON DEV REVENUE	2/1/2031	5.13		445,923		479,043
	500,000	NORCO CA REDEV AGY	3/1/2032	5.88		492,695		520,505
	1,000,000	NORTH CAROLINA ST MED CARE COMMISSION HLTH CARE FACS REVENUE	10/1/2029	6.38		1,000,000		1,027,170
	1,300,000	NORTH CAROLINA ST MED CARE COMMISSION HLTH CARE FACS REVENUE	10/1/2035	6.63		1,300,000		1,011,660
	865,000	NORTH DAKOTA ST HSG FIN AGY	7/1/2034	5.35		865,000		905,568
	965,000	NORTH DAKOTA ST HSG FIN AGY	7/1/2039	5.45		965,000		1,011,870
	1,885,000	NORTH DAKOTA ST HSG FIN AGY	7/1/2040	5.05		1,885,000		1,926,564
	500,000	NTHRN CA GAS AUTH #1 GAS PROJ REVENUE	7/1/2027	1.11		500,000		355,440
	1,000,000	NTHRN IL UNIV	4/1/2026	5.50		1,015,815		1,093,460

See accompanying notes to the financial statements. 61 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	395,000	NTHRN MARIANA ISLANDS CMWLTH	10/1/2022	5.00	$	397,551		330,046
	2,000,000	OAK PARK CA UNIF SCH DIST(b)	8/1/2038	3.77		1,001,547		1,268,960
	1,250,000	OAKLAND CNTY MI ECON DEV CORP LTD OBLG REVENUE	12/1/2020	6.50		1,242,431		1,243,250
	615,000	OHIO ST HSG FIN AGY RSDL MTGE REVENUE	9/1/2033	5.40		615,000		645,098
	275,000	OHIO ST HSG FIN AGY RSDL MTGE REVENUE	9/1/2033	5.45		275,000		288,538
	440,000	OKLAHOMA ST HSG FIN AGY SF MTGE REVENUE	3/1/2032	5.15		440,000		458,097
	745,000	OKLAHOMA ST HSG FIN AGY SF MTGE REVENUE	9/1/2038	6.50		781,275		796,688
	500,000	ONEIDA TRIBE OF INDIANS WI RETAIL SALES REVENUE (c)	2/1/2021	5.50		500,000		562,910
	500,000	ONONDAGA NY CIVIC DEV CORP	12/1/2041	5.25		509,636		519,575
	1,000,000	ONTARIO CA REDEV FING AUTH LEASE REVENUE	8/1/2032	5.00		939,360		1,014,060
	1,000,000	OVERLAND PARK KS TRANSPRTN DEV DIST SALES TAX REVENUE	4/1/2032	5.90		1,000,000		1,079,800
	2,280,000	PACHECO CA UNION SCH DIST COPS (b)	2/1/2037	15.27		485,024		482,174
	1,000,000	PALM BAY FL UTILITY REVENUE (b)	10/1/2031	11.87		316,785		345,450
	250,000	PALM BEACH CNTY FL HLTH FACS AUTH	11/15/2029	5.13		249,946		244,125
	1,000,000	PALM BEACH CNTY FL HLTH FACS AUTH REVENUE	11/15/2022	5.38		920,134		1,011,720
	1,665,000	PATTERSON CA JT UNIF SCH DIST(b)	8/1/2027	12.31		610,043		730,086
	750,000	PELL CITY AL SPL CARE FACS FING AUTH REVENUE	12/1/2027	5.25		625,786		762,158
	1,500,000	PENNSYLVANIA ST ECON DEV FING AUTH HLTH SYS REVENUE	10/15/2023	6.25		1,469,290		1,615,935
	500,000	PENNSYLVANIA ST HGR EDUCTNL FACS AUTH REVENUE	7/1/2039	1.04		500,000		266,730
	500,000	PENNSYLVANIA ST HSG FIN AGY SF MTGE REVENUE	10/1/2025	5.00		501,748		530,895
	1,000,000	PENNSYLVANIA ST HSG FIN AGY SF MTGE REVENUE	10/1/2029	4.63		917,380		1,018,010
	1,000,000	PENNSYLVANIA ST HSG FIN AGY SF MTGE REVENUE	10/1/2034	4.88		1,003,369		1,015,490
	1,000,000	PENNSYLVANIA ST TURNPIKE COMMISSION(b)	6/1/2033	2.19		685,088		886,440
	1,935,000	PENNSYLVANIA ST TURNPIKE COMMISSION(b)	12/1/2035	1.17		1,513,621		1,621,685
	750,000	PENNSYLVANIA ST TURNPIKE COMMISSION(b)	12/1/2035	2.01		550,847		622,005
	1,500,000	PENNSYLVANIA ST TURNPIKE COMMISSION(b)	12/1/2038	1.44		1,083,561		1,248,045
	2,000,000	PEORIA IL PUBLIC BLDG COMMISSION SCH DIST FACS REVENUE(b)	12/1/2021	8.01		1,156,393		1,306,900
	500,000	PEORIA IL PUBLIC BLDG COMMISSION SCH DIST FACS REVENUE(b)	12/1/2022	9.39		258,113		305,785
	5,000,000	PEORIA IL PUBLIC BLDG COMMISSION SCH DIST FACS REVENUE(b)	12/1/2026	11.11		1,993,889		2,167,450
	950,000	PHILADELPHIA PA HOSPS & HGR EDU FACS AUTH	11/15/2023	6.63		950,000		950,190
	1,000,000	PIMA CNTY AZ INDL DEV AUTH CHRT SCH REVENUE	4/1/2022	5.88		1,000,000		974,760
	25,000	PIMA CNTY AZ INDL DEV AUTH EDU REVENUE	8/1/2012	6.25		25,000		25,180

See accompanying notes to the financial statements. 62 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	280,000	PIMA CNTY AZ INDL DEV AUTH EDU REVENUE	6/1/2016	6.00	$	280,000		278,272
	980,000	PIMA CNTY AZ INDL DEV AUTH EDU REVENUE	12/1/2017	5.35		881,894		944,357
	440,000	PIMA CNTY AZ INDL DEV AUTH EDU REVENUE	12/1/2018	6.38		440,000		439,850		��
	865,000	PIMA CNTY AZ INDL DEV AUTH EDU REVENUE	6/1/2022	5.00		799,966		797,392
	995,000	PIMA CNTY AZ INDL DEV AUTH EDU REVENUE	7/1/2026	5.00		864,574		839,611
	490,000	PIMA CNTY AZ INDL DEV AUTH EDU REVENUE	7/1/2031	6.75		359,470		481,410
	1,000,000	PITTSBURG CA REDEV AGY TAX ALLOCATION	9/1/2028	6.50		978,018		1,010,100
	2,625,000	PITTSBURG CALIF UNI SCH DIST FING AUTH REV(b)	9/1/2031	16.03		666,467		695,625
	250,000	PROVIDENCE RI HSG AUTH HSG REVENUE	9/1/2026	5.00		255,174		270,498
	500,000	PROVIDENCE RI HSG AUTH HSG REVENUE	9/1/2027	5.00		507,988		536,835
	745,000	PROVO UT CHRT SCH REVENUE	6/15/2037	5.50		605,746		583,767
	1,000,000	PUBLIC FIN AUTH WI CCRC REVENUE	6/1/2020	7.00		984,438		1,010,030
	1,000,000	PUERTO RICO CMWLTH	7/1/2028	6.00		989,602		1,103,560
	1,500,000	PUERTO RICO CMWLTH	7/1/2040	6.50		1,526,379		1,687,890
	500,000	PUERTO RICO ELEC PWR AUTH PWR REVENUE	7/1/2025	1.07		500,000		355,045
	750,000	PUERTO RICO PUBLIC FIN CORP	8/1/2031	5.50		750,000		767,918
	1,000,000	PUERTO RICO SALES TAX FING CORP SALES TAX REVENUE(b)	8/1/2033	3.37		584,905		759,040
	500,000	PUERTO RICO SALES TAX FING CORP SALES TAX REVENUE	8/1/2057	1.22		500,000		249,585
	750,000	QUAIL CREEK AZ CMNTY FACS DIST	7/15/2016	5.15		750,000		750,165
	2,000,000	RAILSPLITTER IL TOBACCO SETTLEMENT AUTH	6/1/2024	6.25		2,038,472		2,187,340
	975,000	RAMONA CA UNIF SCH DIST COPS(b)	5/1/2032	1.11		797,285		959,371
	1,000,000	REDONDO BEACH CA UNIF SCH DIST(b)	8/1/2034	2.10		681,939		875,420
	1,500,000	REGL CO TRANSPRTN DIST PRIV ACTIVITY REVENUE	1/15/2034	6.00		1,485,438		1,555,695
	400,000	RENO NV HOSP REVENUE	6/1/2032	5.25		409,630		402,040
	750,000	RENO NV SPARKS INDIAN COLONY	6/1/2021	5.00		765,011		780,945
	500,000	RHODE ISLAND ST HLTH & EDUCTNL BLDG CORP	5/15/2030	6.25		493,511		556,360
	500,000	RHODE ISLAND ST STUDENT LOAN AUTH STUDENT LOAN REVENUE	12/1/2027	5.75		500,000		537,785
	1,000,000	RICHMOND CA CMNTY REDEV AGY TAX ALLOCATION	9/1/2030	6.00		972,590		1,063,070
	500,000	RICHMOND CA JT PWRS FING AUTH	7/1/2024	6.25		500,000		553,550
	325,000	RICHMOND IN HOSP AUTH REVENUE	1/1/2029	6.50		315,220		363,054
	1,000,000	RIVERSIDE CNTY CA REDEV AGY	10/1/2030	6.00		1,013,471		1,034,270
	3,000,000	ROBLA CA SCH DIST(b)	8/1/2036	15.56		621,645		631,440
	500,000	S BAYSIDE CA WST MGMT AUTH SOL WST ENTERPRISE REVENUE	9/1/2029	6.25		515,632		546,020
	1,000,000	S COAST IN CONSERVANCY DIST	1/1/2028	5.25		994,583		1,010,940
	173,000	S WSTRN IL DEV AUTH	8/15/2015	5.38		173,000		173,279
	635,000	S WSTRN IL DEV AUTH	10/1/2022	7.00		635,000		635,857

See accompanying notes to the financial statements. 63 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	210,000	S WSTRN IL DEV AUTH	11/1/2026	5.63	$	208,679		155,994
	1,500,000	S WSTRN IL DEV AUTH	8/15/2029	5.63		1,500,000		1,500,090
	1,000,000	SACRAMENTO CA CITY FING AUTH(b)	12/1/2021	7.46		602,765		604,460
	250,000	SACRAMENTO CNTY CA SANTN DISTS FING AUTH REVENUE	12/1/2035	0.88		250,000		157,160
	350,000	SACRAMENTO CNTY CA WTR FING AUTH REVENUE	6/1/2039	0.92		350,000		191,300
	1,030,000	SADDLEBACK VLY CA UNIF SCH DIST PUBLIC FING AUTH	9/1/2017	5.65		1,030,000		1,033,677
	1,000,000	SAGINAW MI HOSP FIN AUTH	7/1/2030	5.00		920,574		984,580
	191,000	SAINT BERNARD PARISH LA HOME MTGE AUTH SF MTGE	3/1/2039	5.80		187,339		202,852
	500,000	SAINT JOHNS CNTY FL INDL DEV AUTH REVENUE	8/1/2040	5.88		492,845		508,900
	460,000	SAINT JOSEPH CNTY IN ECON DEV REVENUE	5/15/2026	6.00		339,426		442,833
	500,000	SAINT JOSEPH CNTY IN ECON DEV REVENUE	5/15/2038	6.00		369,285		452,910
	460,443	SAINT JOSEPH CNTY IN HOSP AUTH HLTH FACS REVENUE(d)	2/15/2028	5.25		466,925		78,874
	500,000	SAINT JOSEPH MO INDL DEV AUTH	11/1/2023	5.38		496,724		476,595
	1,000,000	SAINT PAUL MN PORT AUTH	12/1/2036	5.00		974,965		1,049,860
	143,791	SAINT TAMMANY PARISH LA FIN AUTH SF MTGE REVENUE	12/1/2039	5.25		146,927		149,596
	2,000,000	SALINE CNTY MO INDL DEV AUTH HLTH FACS REVENUE	12/1/2020	5.00		1,982,266		2,027,820
	500,000	SALINE CNTY MO INDL DEV AUTH HLTH FACS REVENUE	12/1/2028	5.60		489,305		496,200
	500,000	SAN DIEGO CA HSG AUTH MF HSG REVENUE	5/1/2029	5.00		500,000		514,745
	500,000	SAN DIEGO CA REDEV AGY	9/1/2023	5.00		453,563		508,925
	1,000,000	SAN FRANCISCO CITY & CNTY CA ARPTS COMMISSION	5/1/2039	6.00		1,029,813		1,117,730
	250,000	SAN JOAQUIN HILLS CA TRANSPRTN CORRIDOR AGY	1/15/2030	5.25		250,000		208,355
	1,000,000	SAN JOSE CA FING AUTH	5/1/2031	5.50		987,084		1,091,410
	500,000	SANTA ANA CA CMNTY REDEV AGY	9/1/2022	6.00		495,127		558,475
	500,000	SANTA MONICA CA REDEV AGY	7/1/2036	5.88		520,841		558,010
	1,450,000	SARASOTA CNTY FL HLTH FACS AUTH RETMNT FAC REVENUE	1/1/2027	5.50		1,203,611		1,461,774
	500,000	SEMINOLE TRIBE FL SPL OBLG REVENUE(c)	10/1/2024	5.50		504,405		476,815
	500,000	SEVEN OAKS FL CMNTY DEV DIST SPL ASSMNT REVENUE	5/1/2033	5.50		487,732		497,475
	150,000	SHELBY CNTY TN HLTH EDUCTNL & HSG FACS BRD REVENUE(d)	1/1/2019	5.35		134,966		17,804
	625,000	SHELBY CNTY TN HLTH EDUCTNL & HSG FACS BRD REVENUE(d)	1/1/2029	5.55		556,862		62,756
	550,000	SNOHOMISH CNTY WA HSG AUTH	4/1/2026	6.40		550,000		552,766
	555,000	SOUTH CAROLINA ST EDU ASSISTANCE AUTH	10/1/2029	5.10		548,591		593,789
	230,000	SOUTH CAROLINA ST HSG FIN & DEV AUTH MTGE REVENUE	7/1/2032	5.50		230,000		241,735
	1,500,000	SOUTH CAROLINA ST JOBS-ECON DEV AUTH ECON DEV REVENUE	11/15/2030	5.63		1,432,766		1,503,765
	500,000	SOUTH CAROLINA ST JOBS-ECON DEV AUTH REVENUE	11/15/2027	6.00		503,376		197,435

See accompanying notes to the financial statements. 64 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	750,000	SOUTH CAROLINA ST JOBS-ECON DEV AUTH REVENUE	11/15/2042	5.15	$	750,000		296,152
	453,000	SOUTHSIDE AZ CMNTY FACS DIST #1 SPL ASSMNT REVENUE PRESCOTT	7/1/2018	6.13		325,909		327,673
	1,000,000	SPARKS NV REDEV AGY TAX INCR REVENUE	6/1/2020	7.25		990,710		1,043,210
	1,000,000	SPARKS NV REDEV AGY TAX INCR REVENUE	1/15/2022	5.00		979,095		1,027,760
	435,000	SPARKS NV TOURISM IMPT DIST #1 REVENUE (c)	6/15/2020	6.50		422,623		401,496
	300,000	STHRN MINNESOTA ST MUNI PWR AGY PWR SPLY SYS REVENUE	1/1/2013	2.79		300,000		300,579
	2,500,000	SULPHUR SPRINGS CA UNION SCH DIST(b)	12/1/2037	1.37		1,849,995		2,262,600
	500,000	TALLAHASSEE FL HLTH FACS REVENUE	12/1/2030	6.38		491,227		500,345
	170,000	TARRANT CNTY TX CULTURAL EDU FACS FIN CORP RETMNT FAC REVENU	2/15/2013	5.00		169,944		168,310
	500,000	TARRANT CNTY TX CULTURAL EDU FACS FIN CORP RETMNT FAC REVENU	2/15/2014	6.50		500,000		500,090
	210,000	TARRANT CNTY TX CULTURAL EDU FACS FIN CORP RETMNT FAC REVENU	11/15/2014	6.25		210,000		207,304
	1,000,000	TARRANT CNTY TX CULTURAL EDU FACS FIN CORP RETMNT FAC REVENU	11/15/2014	6.50		1,000,000		999,970
	1,000,000	TARRANT CNTY TX CULTURAL EDU FACS FIN CORP RETMNT FAC REVENU	2/15/2016	7.25		1,000,000		1,002,380
	750,000	TARRANT CNTY TX CULTURAL EDU FACS FIN CORP RETMNT FAC REVENU	11/15/2019	7.75		750,000		760,455
	1,000,000	TARRANT CNTY TX CULTURAL EDU FACS FIN CORP RETMNT FAC REVENU	11/15/2026	6.00		1,028,776		1,008,310
	1,000,000	TARRANT CNTY TX CULTURAL EDU FACS FIN CORP RETMNT FAC REVENU	5/15/2027	5.13		723,483		961,360
	750,000	TARRANT CNTY TX CULTURAL EDU FACS FIN CORP RETMNT FAC REVENU	11/15/2036	6.00		768,624		734,760
	810,000	TENNESSEE ST HSG DEV AGY	7/1/2038	5.45		810,000		847,390
	175,000	TENNESSEE ST HSG DEV AGY MTGE FIN	7/1/2023	5.20		175,652		178,328
	700,000	TEXAS ST DEPT OF HSG & CMNTY AFFAIRS	7/1/2039	5.45		700,000		733,999
	250,000	TEXAS ST MUNI GAS ACQUISITION & SPLY CORP I GAS SPLY REVENUE	12/15/2026	1.82		250,000		172,528
	2,000,000	TEXAS ST PRIV ACTIVITY BOND SURFACE TRANSPRTN CORP REVENUE	6/30/2033	7.50		2,056,749		2,262,900
	500,000	TEXAS ST PUBLIC FIN AUTH CHRT SCH FIN CORP REVENUE	2/15/2030	6.00		500,000		520,485
	1,000,000	TEXAS ST PUBLIC FIN AUTH CHRT SCH FIN CORP REVENUE	8/15/2030	5.00		880,508		978,600
	800,000	TEXAS ST STUDENT HSG AUTH REVENUE(d)	1/1/2033	11.00		800,000		8
	1,000,000	TOBACCO SECURITIZATION AUTH MNTOBACCO SETTLEMENT REVENUE	3/1/2031	5.25		995,014		1,028,510

See accompanying notes to the financial statements. 65 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	403,949	TODD CREEK FARMS CO MET DIST #1 WTR & WSTWTR REVENUE(d)(e)	12/1/2009	4.75	$	399,574		181,777
	655,000	TOLOMATO FL CDD	5/1/2017	6.38		655,000		280,471
	2,000,000	TORRANCE CA UNIF SCH DIST(b)	8/1/2023	9.54		986,084		1,143,880
	1,000,000	TRACY CA JT UNIF SCH DIST(b)	8/1/2041	4.95		407,346		421,650
	1,000,000	TRAVIS CNTY TX HLTH FACS DEV CORP	11/1/2016	6.25		1,000,000		1,019,650
	840,000	TRAVIS CNTY TX HSG FIN CORP(d)	6/1/2035	9.25		840,000		83,916
	1,250,000	TUSTIN CA UNIF SCH DIST(b)	8/1/2028	4.10		752,314		876,400
	85,000	ULSTER CNTY NY INDL DEV AGY	9/15/2013	5.10		84,793		75,153
	500,000	ULSTER CNTY NY INDL DEV AGY	9/15/2016	5.25		495,880		351,710
	1,250,000	UPLAND CA COPS	1/1/2032	6.38		1,215,554		1,366,738
	671,000	UTAH ASSOC MUNI POWER(e)	5/1/2022	4.75		671,000		619,400
	600,000	UTAH ST CHRT SCH FIN AUTH CHRT SCH REVENUE	7/15/2018	6.38		600,000		614,280
	500,000	UTAH ST CHRT SCH FIN AUTH CHRT SCH REVENUE	7/15/2020	5.75		466,544		497,325
	500,000	UTAH ST CHRT SCH FIN AUTH CHRT SCH REVENUE	7/15/2025	6.50		500,000		511,810
	495,000	UTAH ST HSG CORP SF MTGE REVENUE	1/1/2032	4.95		495,000		507,890
	750,000	UTAH ST HSG CORP SF MTGE REVENUE	1/1/2033	5.75		750,000		799,328
	360,000	UTAH ST HSG CORP SF MTGE REVENUE	1/1/2040	5.55		360,000		374,152
	500,000	VANCOUVER WA HSG AUTH	3/1/2025	5.00		492,866		534,525
	260,000	VERANO CENTER FL CDD	11/1/2012	5.00		260,000		238,885
	1,240,000	VERMONT ST EDUCTNL & HLTH BLDGS FING AGY	12/1/2027	6.13		1,223,087		1,240,000
	750,000	VIRGINIA ST HSG DEV AUTH	12/1/2038	4.60		746,254		754,448
	1,000,000	VIRGINIA ST HSG DEV AUTH	12/1/2039	5.00		1,000,000		1,030,000
	735,000	VIRGINIA ST HSG DEV AUTH CMWLTH MTGE	7/1/2025	6.00		735,000		810,484
	1,000,000	VIRGINIA ST HSG DEV AUTH CMWLTH MTGE	7/1/2031	6.25		1,021,257		1,098,900
	1,000,000	W CAMPUS HSG LLC AZ STUDENT HSG REVENUE	7/1/2025	5.00		882,941		928,460
	230,000	W VLGS FL IMPT DIST	5/1/2037	5.50		230,000		102,752
	500,000	WASHINGTON ST HLTH CARE FACS AUTH	3/1/2024	6.50		479,714		559,425
	1,000,000	WASHINGTON ST HLTH CARE FACS AUTH	3/1/2029	7.12		975,793		1,129,840
	750,000	WASHINGTON ST HLTH CARE FACS AUTH	11/15/2031	6.13		743,536		825,458
	1,000,000	WASHINGTON ST HSG FIN COMMISSION	7/15/2029	4.75		1,000,000		1,023,960
	250,000	WASHINGTON ST HSG FIN COMMISSION NONPROFIT REVENUE	1/1/2013	5.10		250,000		237,700
	1,150,000	WASHINGTON ST HSG FIN COMMISSION NONPROFIT REVENUE	1/1/2017	5.25		1,147,447		988,782
	500,000	WATERLOO IA CMNTY SCH DIST SCH INFRASTRUCTURE SALES & SVCS T	7/1/2029	5.00		500,000		519,965
	420,000	WATERS EDGE FL CDD CAPITAL IMPT REVENUE(d)	11/1/2012	5.00		420,018		185,199
	1,000,000	WISCONSIN ST GEN FUND ANNUAL APPROP REVENUE	5/1/2027	6.00		1,020,741		1,183,180
	525,000	WISCONSIN ST HLTH & EDUCTNL FACS AUTH	2/15/2018	6.25		510,215		526,087
	605,000	WISCONSIN ST HLTH & EDUCTNL FACS AUTH	11/15/2025	5.75		599,546		606,053
	960,000	WISCONSIN ST HLTH & EDUCTNL FACS AUTH	2/15/2029	5.60		952,934		960,470

See accompanying notes to the financial statements. 66 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Par/Shares			Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	400,000		WISCONSIN ST HLTH & EDUCTNL FACS AUTH REVENUE	8/15/2023	5.60	$	400,830		408,012
	185,000		WISCONSIN ST HLTH & EDUCTNL FACS AUTH REVENUE	11/15/2023	6.00		191,725		192,039
	500,000		WISCONSIN ST HLTH & EDUCTNL FACS AUTH REVENUE	8/15/2024	6.50		357,677		500,140
	500,000		WISCONSIN ST HLTH & EDUCTNL FACS AUTH REVENUE	1/15/2025	5.65		501,698		510,280
	500,000		WISCONSIN ST HLTH & EDUCTNL FACS AUTH REVENUE	7/1/2026	5.00		503,628		502,600
	1,000,000		WISCONSIN ST HLTH & EDUCTNL FACS AUTH REVENUE	7/1/2030	5.75		1,025,607		1,057,820
	500,000		WISCONSIN ST HLTH & EDUCTNL FACS AUTH REVENUE	2/15/2032	5.25		489,030		501,375
	250,000		WISCONSIN ST HLTH & EDUCTNL FACS AUTH REVENUE	11/15/2032	6.00		260,780		255,360
	750,000		WISCONSIN ST HLTH & EDUCTNL FACS AUTH REVENUE	4/15/2033	6.40		758,162		765,922
	500,000		WISCONSIN ST HLTH & EDUCTNL FACS AUTH REVENUE	8/15/2034	6.75		505,274		503,700
	1,000,000		WISCONSIN ST HLTH & EDUCTNL FACS AUTH REVENUE	12/1/2034	7.07		1,000,000		299,880
	570,000		WOODHILL TX PUBLIC FAC CORP MF REVENUE	12/1/2015	7.25		566,156		570,274
	405,000		WSTRN GENERATION AGY OR COGENERATION PROJ REVENUE	1/1/2021	5.00		406,984		371,328
	500,000		WYOMING CMNTY DEV AUTH STUDENTHSG REV	7/1/2031	6.25		500,000		520,705
	750,000		WYOMING ST CMNTY DEV AUTH HSG REVENUE	12/1/2023	5.25		758,090		806,498
	355,000		ZEPHYR RIDGE FL CDD CAPITAL IMPT REVENUE(d)	5/1/2013	5.25		355,352		141,272
		Sub-total Municipal Bonds:					457,208,435		458,492,111		88.37	%
Short-Term Investments:
	11,769,850		NORTHERN INSTITUTIONAL TAX-EXEMPT PORTFOLIO, 0.03% (f)				11,769,850		11,769,850
		Sub-total Short-Term Investments:					11,769,850		11,769,850		2.27	%
			Grand total(g)			$	503,433,825		510,380,170		98.37	%

See accompanying notes to the financial statements. 67 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2011

Notes to Schedule of Investments:

(a)	Securities are valued in accordance with procedures described in note 2 to the financial statements.
(b)	For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition.
(c)	Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees of the Funds.
(d)	Currently non-income producing assets. For long-term debt securities, item identified is in default as to payment of interest and/or principal.
(e)	This security is being fair valued according to procedures adopted by the Board of Trustees.
(f)	The short-term investment is a money market portfolio of the investment company, Northern Institutional Funds. At December 31, 2010, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $8,475,514 with net purchases of approximately $3,294,336 during the fiscal year ended December 31, 2011.
(g)	At December 31, 2011, the cost for Federal income tax purposes was $503,433,825. The aggregate gross unrealized appreciation and depreciation of investments in securities based on this cost were as follows:

Gross unrealized appreciation	$	28,314,173
Gross unrealized depreciation		(21,367,828	)
Net unrealized appreciation	$	6,946,345

Diversification of investments representing geographic diversification, as a percentage of total invesments at fair value, is as follows:

Geographical Diversification	Percent
California		14.11	%
Illinois		10.62
Texas		7.26
Florida		4.45
New Jersey		3.99
Indiana		3.95
Pennsylvania		3.89
Minnesota		3.29
Colorado		2.89
Massachusetts		2.66
Other		42.89
		100.00	%

See accompanying notes to the financial statements. 68 (Continued)

CLEARWATER INVESTMENT TRUST

Schedule of Investments – Clearwater Tax-Exempt Bond Fund

December 31, 2011

See accompanying notes to the financial statements. 69 (Continued)

CLEARWATER INVESTMENT TRUST

Schedule of Investments - Clearwater International Fund

December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Common Stocks:
Australia:
	26,184	AGL ENERGY LTD.	$	342,599		383,601
	51,722	ALUMINA LTD.		50,177		58,959
	28,415	AMCOR LTD.		114,487		209,450
	46,294	AMP LTD.		141,805		192,627
	29,665	ASCIANO LTD.		129,579		136,475
	4,112	ASX LTD.		84,309		128,555
	46,617	AUSTRALIA & NEW ZEALAND BANKING GROUP LTD.		638,253		978,431
	6,281	BENDIGO AND ADELAIDE BANK LTD.		52,780		51,563
	179,910	BGP HOLDINGS PLC - (FRACTIONAL SHARES)(b)		-		-
	58,575	BHP BILLITON LTD.		1,409,751		2,061,200
	13,040	BORAL LTD.		38,661		47,993
	17,400	BRAMBLES LTD.		64,294		127,368
	8,400	CALTEX AUSTRALIA LTD.		105,590		101,077
	2,393	CAMPBELL BROTHERS LTD.		117,246		119,853
	121,633	CFS RETAIL PROPERTY TRUST		194,250		209,531
	27,898	COCA-COLA AMATIL LTD.		299,576		328,281
	971	COCHLEAR LTD.		35,893		61,547
	28,762	COMMONWEALTH BANK OF AUSTRALIA		837,550		1,447,297
	79,200	COMMONWEALTH PROPERTY OFFICE FUND		76,992		77,326
	8,520	COMPUTERSHARE LTD.		47,795		69,770
	18,353	CROWN LTD.		99,514		151,793
	9,576	CSL LTD.		226,091		313,279
	13,946	CSR LTD.		34,433		27,945
	85,105	DEXUS PROPERTY GROUP		62,970		72,215
	5,726	DULUXGROUP LTD.		5,840		16,918
	12,777	ECHO ENTERTAINMENT GROUP LTD.(b)		35,384		46,894
	24,200	EMECO HOLDINGS LTD.		30,149		23,875
	38,735	FAIRFAX MEDIA LTD.		31,235		28,512
	5,300	FLIGHT CENTRE LTD.		104,602		87,345
	21,110	FORTESCUE METALS GROUP LTD.		37,574		92,154
	93,686	GOODMAN GROUP		48,414		54,594
	104,982	GPT GROUP		265,936		329,496
	34,615	HARVEY NORMAN HOLDINGS LTD.		79,261		64,938
	44,965	INCITEC PIVOT LTD.		117,225		142,966
	47,825	INSURANCE AUSTRALIA GROUP LTD.		120,292		145,703
	2,244	LEIGHTON HOLDINGS LTD.		29,819		43,680
	10,015	LEND LEASE GROUP		61,130		73,310
	9,837	MACQUARIE GROUP LTD.		195,127		239,251
	55,748	METCASH LTD.		200,733		230,254
	3,900	MINERAL RESOURCES LTD.		37,407		43,859
	37,974	MIRVAC GROUP		50,570		45,810
	41,258	NATIONAL AUSTRALIA BANK LTD.		706,058		985,322
	10,628	NEWCREST MINING LTD.		289,672		321,618
	165,887	ONESTEEL LTD.		355,418		118,716
	10,126	ORICA LTD.		164,369		250,939
	15,652	ORIGIN ENERGY LTD.		164,158		213,463
	6,819	OZ MINERALS LTD.		25,768		69,783
	60,703	PALADIN ENERGY LTD.(b)		104,577		85,021
	416	PERPETUAL LTD.		7,027		8,689
	130,032	QANTAS AIRWAYS LTD.(b)		239,257		194,089
	15,800	QBE INSURANCE GROUP LTD.		218,199		209,182
	20,800	RAMELIUS RESOURCES LTD.(b)		31,764		22,647
	8,245	RIO TINTO LTD.		321,508		508,282
	23,269	SANTOS LTD.		255,999		291,176
	9,824	SONIC HEALTHCARE LTD.		79,849		113,291
	10,500	SP AUSNET		9,788		10,091
	10,100	SPOTLESS GROUP LTD.		18,131		24,575
	132,929	STOCKLAND		390,281		433,518
	49,573	SUNCORP GROUP LTD.		273,388		424,704
	72,377	TABCORP HOLDINGS LTD.		177,152		202,004
	100,846	TATTS GROUP LTD.		225,972		251,562
	69,046	TELSTRA CORP. LTD.		158,437		235,061
	55,889	TOLL HOLDINGS LTD.		302,168		241,121
	13,099	TRANSURBAN GROUP		36,728		75,261
	53,700	TREASURY WINE ESTATES LTD.		205,527		202,032
	16,997	WESFARMERS LTD.		225,362		512,615
	2,560	WESFARMERS LTD. - PPS		32,507		77,862

See accompanying notes to the financial statements. 70 (Continued)

CLEARWATER INVESTMENT TRUST

Schedule of Investments - Clearwater International Fund

December 31, 2011

Shares		Security		Cost		Fair value (a)		Percent of net assets
Australia (Cont’d):
	42,659	WESTFIELD GROUP		$	253,085		340,611
	35,413	WESTFIELD RETAIL TRUST			53,180		90,149
	56,332	WESTPAC BANKING CORP.			771,371		1,151,814
	7,677	WOODSIDE PETROLEUM LTD.			245,484		240,322
	19,482	WOOLWORTHS LTD.			346,571		499,924
	6,807	WORLEYPARSONS LTD.			151,071		178,640
					13,495,119		17,649,779		5.79%
Austria:
	3,566	ERSTE GROUP BANK A.G.			63,769		62,700
	33,719	IMMOFINANZ A.G.(b)			101,096		101,249
	900	OESTERREICHISCHE POST A.G.			27,958		27,141
	4,858	OMV A.G.			162,153		147,382
	3,309	RAIFFEISEN BANK INTERNATIONAL A.G.			106,621		85,934
	3,016	STRABAG S.E. (BEARER)			88,668		86,307
	915	VERBUND A.G.			30,953		24,556
	1,003	VIENNA INSURANCE GROUP A.G. WIENER VERSICHERUNG GRUPPE			49,973		39,750
	11,446	VOESTALPINE A.G.			448,554		321,026
					1,079,745		896,045		0.29%
Belgium:
	92,075	AGEAS			155,612		143,005
	13,088	ANHEUSER-BUSCH INBEV N.V.			445,645		801,324
	5,100	ANHEUSER-BUSCH INBEV N.V. ADR(c)			318,185		311,049
	15,383	BELGACOM S.A.			496,582		482,616
	1,645	COLRUYT S.A.			74,892		62,276
	8,404	DELHAIZE GROUP S.A.	��		582,741		472,121
	14,562	GROUPE BRUXELLES LAMBERT S.A.			1,232,472		970,824
	2,869	KBC GROEP N.V.			50,323		36,134
	400	MOBISTAR S.A.			25,537		20,962
	625	SOLVAY S.A., CLASS A			36,847		51,496
	7,091	UCB S.A.			261,400		298,368
	2,966	UMICORE S.A.			53,114		122,344
					3,733,350		3,772,519		1.24%
Canada:
	4,700	ADVANTAGE OIL & GAS LTD.(b)			36,288		19,559
	4,044	AGNICO-EAGLE MINES LTD.			244,292		146,878
	1,900	AGRIUM, INC.			106,809		127,514
	12,134	AGRIUM, INC. (NEW YORK EXCHANGE)			599,550		814,313
	7,100	ALIMENTATION COUCHE TARD, INC., CLASS B			176,962		220,898
	400	ARC RESOURCES LTD.			8,963		9,854
	3,000	ATCO LTD., CLASS I			102,722		177,370
	9,300	AURICO GOLD, INC.(b)			84,169		74,755
	12,593	BANK OF MONTREAL			453,760		690,222
	20,946	BANK OF NOVA SCOTIA			628,249		1,043,320
	18,364	BARRICK GOLD CORP.			620,486		830,971
	3,479	BAYTEX ENERGY CORP.			151,408		194,441
	7,800	BCE, INC.			164,418		325,026
	11,627	BROOKFIELD ASSET MANAGEMENT, INC., CLASS A			172,468		319,510
	11,740	CAE, INC.			85,345		113,878
	2,700	CALFRAC WELL SERVICES LTD.			69,284		75,524
	500	CAMECO CORP.			10,257		9,034
	11,081	CAMECO CORP. (NEW YORK EXCHANGE)			198,977		200,012
	8,340	CANADIAN IMPERIAL BANK OF COMMERCE			394,681		603,566
	9,614	CANADIAN NATIONAL RAILWAY CO.			389,611		755,276
	22,671	CANADIAN NATURAL RESOURCES LTD.			540,039		847,215
	1,100	CANADIAN PACIFIC RAILWAY LTD.			50,079		74,504
	3,842	CANADIAN PACIFIC RAILWAY LTD. (NEW YORK EXCHANGE)			120,622		259,988
	2,200	CANADIAN TIRE CORP. LTD., CLASS A			131,124		142,293
	3,400	CANADIAN UTILITIES LTD., CLASS A			173,027		205,358
	15,213	CENOVUS ENERGY, INC.			314,780		505,072
	2,300	CENTERRA GOLD, INC.			45,093		40,633
	12,200	CGI GROUP, INC., CLASS A(b)			225,117		229,898
	10,919	CGI GROUP, INC., CLASS A (NEW YORK EXCHANGE)(b)			90,696		205,823
	3,100	COGECO CABLE, INC.			140,724		156,235
	1,861	CRESCENT POINT ENERGY CORP.			38,774		82,107

See accompanying notes to the financial statements. 71 (Continued)

CLEARWATER INVESTMENT TRUST

Schedule of Investments - Clearwater International Fund

December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Canada (Cont’d):
	4,200	DUNDEE CORP., CLASS A(b)	$	97,479		97,242
	12,278	ELDORADO GOLD CORP.		151,008		168,331
	1,200	EMPIRE CO. LTD., CLASS A		71,754		69,617
	15,872	ENBRIDGE, INC.		263,158		593,772
	16,387	ENCANA CORP.		375,934		303,651
	6,047	ENERPLUS CORP.		113,667		153,110
	10,700	ENSIGN ENERGY SERVICES, INC.		171,153		170,652
	660	FAIRFAX FINANCIAL HOLDINGS LTD.		270,775		283,081
	349	FAIRFAX FINANCIAL HOLDINGS LTD. (OTC EXCHANGE)		107,219		150,489
	2,800	GEORGE WESTON LTD.		200,720		187,118
	3,052	GILDAN ACTIVEWEAR, INC.		33,435		57,347
	14,604	GOLDCORP, INC.		479,947		646,227
	11,200	HUDBAY MINERALS, INC.		110,573		111,463
	8,203	IAMGOLD CORP.		91,103		130,018
	7,165	IMPERIAL OIL LTD.		255,881		318,699
	2,400	INMET MINING CORP.		149,124		154,286
	200	INTACT FINANCIAL CORP.		11,023		11,489
	6,600	IVANHOE MINES LTD.(b)		74,692		116,952
	24,936	KINROSS GOLD CORP.		416,761		284,270
	1,500	LAURENTIAN BANK OF CANADA		65,319		70,415
	2,900	MACDONALD DETTWILER & ASSOCIATES LTD.		125,974		134,030
	600	MAGNA INTERNATIONAL, INC.		15,163		20,022
	6,538	MAGNA INTERNATIONAL, INC. (NEW YORK EXCHANGE)		86,809		217,781
	900	MANITOBA TELECOM SERVICES, INC.		27,675		26,208
	26,435	MANULIFE FINANCIAL CORP.		325,227		280,740
	8,200	MAPLE LEAF FOODS, INC.		99,478		87,160
	3,469	METHANEX CORP.		31,828		79,163
	1,900	METHANEX CORP. (TORONTO EXCHANGE)		43,920		43,487
	4,700	METRO, INC., CLASS A		227,622		249,096
	100	NATIONAL BANK OF CANADA		6,671		7,080
	7,600	NEO MATERIAL TECHNOLOGIES, INC.(b)		69,912		54,676
	12,300	NEVSUN RESOURCES LTD.		74,157		68,328
	8,650	NEW GOLD, INC.(b)		86,240		87,192
	7,300	NEW GOLD, INC. (TORONTO EXCHANGE)(b)		82,539		73,653
	10,200	NEXEN, INC.		204,786		162,277
	11,881	NEXEN, INC. (NEW YORK EXCHANGE)		199,398		189,027
	4,500	NUVISTA ENERGY LTD.(b)		47,576		23,143
	1,641	OPEN TEXT CORP.(b)		72,477		83,921
	1,300	PACE OIL AND GAS LTD.(b)		5,385		5,460
	2,253	PAN AMERICAN SILVER CORP.		41,183		49,138
	12,861	PENGROWTH ENERGY CORP.		127,732		132,916
	15,200	PENN WEST PETROLEUM LTD.		378,105		301,200
	12,367	PENN WEST PETROLEUM LTD. (NEW YORK EXCHANGE)		146,337		244,867
	6,700	PETROBANK ENERGY & RESOURCES LTD.(b)		106,114		69,572
	1,400	PETROMINERALES LTD.		35,257		22,754
	16,494	POTASH CORP. OF SASKATCHEWAN, INC.		487,584		680,872
	25,500	PRECISION DRILLING CORP.(b)		265,192		261,630
	10,641	PROVIDENT ENERGY LTD.		33,300		103,111
	4,500	QUEBECOR, INC., CLASS B		150,339		154,095
	6,365	RESEARCH IN MOTION LTD.(b)		171,604		92,292
	2,101	RITCHIE BROS. AUCTIONEERS, INC.		37,504		46,390
	11,804	ROGERS COMMUNICATIONS, INC., CLASS B		297,724		454,572
	27,302	ROYAL BANK OF CANADA		933,280		1,391,310
	3,700	SAPUTO, INC.		151,722		141,734
	600	SHAW COMMUNICATIONS, INC., CLASS B		12,390		11,925
	9,661	SHAW COMMUNICATIONS, INC., CLASS B (NEW YORK EXCHANGE)		153,543		191,964
	17,300	SHERRITT INTERNATIONAL CORP.		124,690		92,707
	1,000	SHOPPERS DRUG MART CORP.		39,932		40,377
	6,863	SILVER WHEATON CORP.		71,004		198,752
	200	SNC-LAVALIN GROUP, INC.		5,085		10,027
	13,665	SUN LIFE FINANCIAL, INC.		280,304		253,076
	28,437	SUNCOR ENERGY, INC.		680,912		819,839
	21,947	TALISMAN ENERGY, INC.		254,929		279,824
	12,276	TECK RESOURCES LTD., CLASS B		103,421		431,992
	4,274	TELUS CORP. (NON VOTING)		113,886		228,873
	400	TIM HORTONS, INC.		18,783		19,378

See accompanying notes to the financial statements. 72 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Canada (Cont’d):
	4,489	TIM HORTONS, INC. (NEW YORK EXCHANGE)	$	137,057		217,357
	16,563	TORONTO-DOMINION BANK (THE)		671,143		1,239,078
	13,170	TRANSALTA CORP.		255,566		271,565
	14,285	TRANSCANADA CORP.		389,230		623,826
	5,900	TRANSFORCE, INC.		72,666		74,989
	6,000	TRICAN WELL SERVICE LTD.		109,274		103,348
	5,968	VALEANT PHARMACEUTICALS INTERNATIONAL, INC.(b)		117,465		278,646
	2,256	VERMILION ENERGY, INC.		83,841		100,458
	1,700	WEST FRASER TIMBER CO. LTD.		67,344		69,076
	9,900	YAMANA GOLD, INC.		97,087		145,942
	19,653	YAMANA GOLD, INC. (NEW YORK EXCHANGE)		186,540		288,703
				19,321,405		25,609,895		8.39	%
China:
	210,000	ANHUI EXPRESSWAY CO. LTD., CLASS H		172,455		123,287
	10,000	CHINA MINZHONG FOOD CORP. LTD.(b)		10,321		6,284
	39,000	HAIER ELECTRONICS GROUP CO. LTD.(b)		33,373		34,897
	269,930	INDUSTRIAL & COMMERCIAL BANK OF CHINA, CLASS H		213,123		160,208
				429,272		324,676		0.11	%
Denmark:
	10	A.P. MOLLER - MAERSK A/S, CLASS A		46,408		62,403
	30	A.P. MOLLER - MAERSK A/S, CLASS B		161,539		198,075
	18,066	CARLSBERG A/S, CLASS B		1,367,629		1,273,964
	300	COLOPLAST A/S, CLASS B		27,666		43,146
	13,100	DANSKE BANK A/S(b)		138,182		166,394
	4,000	DSV A/S		31,768		71,736
	200	FLSMIDTH & CO. A/S		6,013		11,753
	11,700	H. LUNDBECK A/S		226,537		220,014
	9,900	NOVO-NORDISK A/S, CLASS B		554,060		1,137,678
	2,500	NOVOZYMES A/S, CLASS B		39,158		77,177
	12,746	PANDORA A/S		88,977		119,842
	325	TOPDANMARK A/S(b)		33,362		50,645
				2,721,299		3,432,827		1.12	%
Finland:
	1,907	CARGOTEC OYJ, CLASS B		84,966		56,719
	1,805	ELISA OYJ		21,851		37,682
	7,306	FORTUM OYJ		150,746		155,929
	18,000	KEMIRA OYJ		247,726		213,867
	1,396	KESKO OYJ, CLASS B		30,705		46,905
	1,628	KONE OYJ, CLASS B		35,674		84,494
	5,078	METSO OYJ		59,357		188,298
	13,359	NESTE OIL OYJ		131,411		134,951
	59,752	NOKIA OYJ		345,692		291,710
	2,240	NOKIAN RENKAAT OYJ		31,307		72,132
	12,778	OUTOKUMPU OYJ		101,492		84,015
	10,565	POHJOLA BANK PLC, CLASS A		85,425		102,692
	5,573	SAMPO OYJ, CLASS A		77,600		138,274
	559	SANOMA OYJ		6,931		6,414
	15,829	STORA ENSO OYJ, CLASS R		75,698		94,814
	9,000	TIETO OYJ		122,401		128,134
	11,934	UPM-KYMMENE OYJ		99,928		131,445
	634	WARTSILA OYJ		7,249		18,315
				1,716,159		1,986,790		0.65	%
France:
	15,275	ACCOR S.A.		595,716		387,198
	551	AEROPORTS DE PARIS		28,858		37,797
	5,432	AIR FRANCE-KLM(b)		38,168		27,932
	5,518	AIR LIQUIDE S.A.		508,863		682,688
	89,279	ALCATEL-LUCENT(b)		261,835		139,471
	2,297	ALSTOM S.A.		87,870		69,656
	10,833	ARCELORMITTAL		204,661		198,116
	2,808	ARKEMA S.A.		73,140		198,798
	608	ATOS		15,429		26,685
	27,416	AXA S.A.		373,813		356,436
	819	BIOMERIEUX		79,843		58,555
	18,641	BNP PARIBAS S.A.		813,238		732,244
	7,036	BOUYGUES S.A.		250,920		221,699

See accompanying notes to the financial statements. 73 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
France (Cont’d):
	735	BUREAU VERITAS S.A.	$	29,322		53,558
	1,862	CAP GEMINI S.A.		62,328		58,188
	5,422	CARREFOUR S.A.		147,570		123,615
	2,177	CASINO GUICHARD PERRACHON S.A.		172,738		183,372
	648	CHRISTIAN DIOR S.A.		36,000		76,833
	8,977	CIE DE SAINT-GOBAIN		309,749		344,670
	7,231	CIE GENERALE DES ESTABLISSEMENTS MICHELIN, CLASS B		443,942		427,469
	3,462	CIE GENERALE D’OPTIQUE ESSILOR INTERNATIONAL S.A.		134,447		244,427
	20,236	CNP ASSURANCES		315,458		250,858
	9,764	DANONE		490,226		613,796
	812	DASSAULT SYSTEMES S.A.		31,122		65,086
	3,633	EDENRED		65,572		89,434
	1,536	EURAZEO		53,525		54,660
	3,941	EUTELSAT COMMUNICATIONS S.A.		92,604		153,788
	32,283	FRANCE TELECOM S.A.		572,425		507,039
	24,659	GDF SUEZ		721,519		674,058
	564	GECINA S.A.		51,331		47,448
	648	HERMES INTERNATIONAL		64,252		193,193
	304	ILIAD S.A.		29,549		37,516
	2,335	KLEPIERRE		57,367		66,608
	4,713	LAFARGE S.A.		166,939		165,674
	5,451	LAGARDERE S.C.A.		132,733		143,924
	3,554	LEGRAND S.A.		61,802		114,307
	3,491	L’OREAL S.A.		255,535		364,629
	3,812	LVMH MOET HENNESSY LOUIS VUITTON S.A.		284,586		539,757
	41,178	NATIXIS		92,351		103,607
	991	NEOPOST S.A.		83,847		66,774
	2,898	PERNOD-RICARD S.A.		177,566		268,784
	10,344	PEUGEOT S.A.		168,977		162,129
	1,531	PPR		112,344		219,258
	40,596	PUBLICIS GROUPE S.A.		1,432,100		1,867,625
	5,954	RENAULT S.A.		173,471		206,524
	4,202	SAFRAN S.A.		40,399		126,202
	30,836	SANOFI		1,902,383		2,264,915
	9,202	SCHNEIDER ELECTRIC S.A.		387,172		484,497
	1,813	SCOR S.E.		36,441		42,378
	3,311	SES S.A.		62,443		79,472
	5,823	SOCIETE GENERALE S.A.		158,425		129,667
	36,045	SOCIETE TELEVISION FRANCAISE 1		365,148		351,852
	7,071	SODEXO		363,938		507,653
	13,444	SODEXO PRIME FIDELITE(b)		721,006		965,194
	30,250	SUEZ ENVIRONNEMENT CO.		464,566		348,491
	2,589	TECHNIP S.A.		116,011		243,342
	2,172	THALES S.A.		86,735		68,593
	77,940	TOTAL S.A.		4,118,434		3,984,606
	1,568	UNIBAIL-RODAMCO S.E.		177,708		281,888
	3,072	VALLOUREC S.A.		191,446		199,437
	5,000	VEOLIA ENVIRONNEMENT S.A.		70,640		54,806
	8,329	VINCI S.A.		346,780		363,934
	25,193	VIVENDI S.A.		569,279		551,707
				20,534,605		22,674,517		7.43	%
Germany:
	2,785	ADIDAS A.G.		94,549		181,166
	9,809	ALLIANZ S.E. (REGISTERED)		984,216		938,331
	2,459	AURUBIS A.G.		142,179		131,124
	24,026	BASF S.E.		1,152,067		1,675,782
	12,500	BAYER A.G. (REGISTERED)		629,487		799,217
	14,464	BAYERISCHE MOTOREN WERKE A.G.		786,641		968,971
	828	BEIERSDORF A.G.		35,556		46,960
	4,000	BILFINGER BERGER S.E.		273,213		341,068
	7,652	CELESIO A.G.		109,250		121,223
	916	CONTINENTAL A.G.(b)		47,943		57,019
	17,639	DAIMLER A.G. (REGISTERED)		589,913		774,386
	10,725	DEUTSCHE BANK A.G. (REGISTERED)		416,479		408,591
	2,057	DEUTSCHE BOERSE A.G.(b)		105,574		107,851

See accompanying notes to the financial statements. 74 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Germany (Cont’d):
	3,261	DEUTSCHE LUFTHANSA A.G. (REGISTERED)	$	35,709		38,767
	19,219	DEUTSCHE POST A.G. (REGISTERED)		228,974		295,512
	41,318	DEUTSCHE TELEKOM A.G. (REGISTERED)		511,289		474,074
	23,204	E.ON A.G.		589,190		500,641
	4,168	FRESENIUS MEDICAL CARE A.G. & CO. KGAA		184,299		283,214
	1,848	FRESENIUS S.E. & CO. KGAA		99,809		170,968
	2,738	GEA GROUP A.G.		27,680		77,431
	13,631	HANNOVER RUECKVERSICHERUNG A.G. (REGISTERED)		689,309		676,142
	34,628	HEIDELBERGCEMENT A.G.		1,710,609		1,469,592
	10,464	HENKEL A.G. & CO. KGAA		419,473		506,521
	1,550	HOCHTIEF A.G.		59,506		89,664
	21,437	INFINEON TECHNOLOGIES A.G.		120,692		161,368
	2,921	K+S A.G. (REGISTERED)		149,718		132,018
	5,523	LANXESS A.G.		299,998		285,932
	2,642	LINDE A.G.		210,857		393,070
	2,275	MAN S.E.		122,285		202,286
	1,310	MERCK KGAA		110,683		130,605
	4,523	METRO A.G.		157,225		165,083
	4,041	MUENCHENER RUECKVERSICHERUNGS A.G. (REGISTERED)		512,591		495,717
	10,061	RWE A.G.		298,363		353,540
	1,458	SALZGITTER A.G.		79,130		72,897
	17,103	SAP A.G.		683,559		904,258
	13,593	SIEMENS A.G. (REGISTERED)		846,647		1,300,837
	4,300	SIEMENS A.G. ADR(c)		450,971		411,123
	4,500	SUEDZUCKER A.G.		150,087		143,568
	6,245	THYSSENKRUPP A.G.		125,145		143,267
	7,071	TUI A.G.(b)		57,698		43,901
	493	VOLKSWAGEN A.G.		49,099		66,137
	517	WACKER CHEMIE A.G.		55,413		41,587
				14,403,075		16,581,409		5.44	%
Greece:
	6,991	COCA COLA HELLENIC BOTTLING CO. S.A.(b)		108,814		119,890
	38,799	NATIONAL BANK OF GREECE S.A.(b)		320,607		81,351
				429,421		201,241		0.07	%
Hong Kong:
	94,800	AIA GROUP LTD.		287,504		295,974
	23,100	BANK OF EAST ASIA LTD.		41,005		87,436
	46,000	BOC HONG KONG HOLDINGS LTD.		63,016		108,970
	26,000	CATHAY PACIFIC AIRWAYS LTD.		31,809		44,587
	252,000	CHAMPION REIT		99,702		94,736
	20,000	CHEUNG KONG HOLDINGS LTD.		172,258		237,922
	11,000	CHEUNG KONG INFRASTRUCTURE HOLDINGS LTD.		51,146		64,437
	33,000	CHOW SANG SANG HOLDINGS INTERNATIONAL LTD.		90,252		74,351
	36,500	CLP HOLDINGS LTD.		253,113		310,384
	27,800	ESPRIT HOLDINGS LTD.		38,689		35,863
	18,000	GALAXY ENTERTAINMENT GROUP LTD.(b)		39,054		33,000
	83,123	GUOCO GROUP LTD.		703,310		773,200
	17,000	HANG LUNG GROUP LTD.		50,690		93,128
	30,000	HANG LUNG PROPERTIES LTD.		64,007		85,358
	11,500	HANG SENG BANK LTD.		124,740		136,435
	13,000	HENDERSON LAND DEVELOPMENT CO. LTD.		45,544		64,605
	110,110	HONG KONG & CHINA GAS CO. LTD.		149,918		255,172
	18,900	HONG KONG EXCHANGES AND CLEARING LTD.		202,799		301,972
	400	HOPEWELL HIGHWAY INFRASTRUCTURE LTD.		229		200
	4,000	HOPEWELL HOLDINGS LTD.		10,853		10,228
	48,000	HOPSON DEVELOPMENT HOLDINGS LTD.		75,765		24,905
	36,000	HUTCHISON WHAMPOA LTD.		189,637		301,497
	116,000	JOHNSON ELECTRIC HOLDINGS LTD.		64,368		64,069
	27,000	KERRY PROPERTIES LTD.		90,767		89,337
	50,000	KINGBOARD CHEMICAL HOLDINGS LTD.		180,015		148,058
	150,000	LI & FUNG LTD.		208,513		277,705
	104,500	LINK REIT (THE)		296,460		384,782
	16,500	MTR CORP.		38,268		53,426
	190,000	NEW WORLD DEVELOPMENT LTD.		230,135		153,130
	216,000	NOBLE GROUP LTD.		331,689		188,179
	154,500	NWS HOLDINGS LTD.		215,741		227,556

See accompanying notes to the financial statements. 75 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Hong Kong (Cont’d):
	37,000	PACIFIC ANDES RESOURCES DEVELOPMENT LTD.	$	5,907		5,534
	284,000	PCCW LTD.		110,273		97,625
	81,000	POWER ASSETS HOLDINGS LTD.		509,060		599,112
	31,200	SANDS CHINA LTD.(b)		71,562		88,170
	22,000	SHANGRI-LA ASIA LTD.		29,501		37,954
	59,400	SINO LAND CO. LTD.		80,601		84,581
	2,800	SINO-FOREST CORP.(b)		50,555		13,218
	105,000	SJM HOLDINGS LTD.		192,849		171,412
	23,000	SUN HUNG KAI PROPERTIES LTD.		222,078		288,268
	19,000	SWIRE PACIFIC LTD., CLASS A		143,178		229,328
	13,000	TELEVISION BROADCASTS LTD.		71,193		78,831
	37,000	WHARF HOLDINGS LTD.		91,952		167,202
	22,000	WHEELOCK & CO. LTD.		39,213		54,496
	30,000	WYNN MACAU LTD.		50,423		75,316
	53,500	YUE YUEN INDUSTRIAL HOLDINGS LTD.		123,576		169,098
				6,232,917		7,180,747		2.35	%
Ireland:
	16,590	ACCENTURE PLC, CLASS A		573,657		883,086
	31,362	COVIDIEN PLC		1,134,423		1,411,604
	14,588	CRH PLC		212,444		289,978
	3,489	CRH PLC (DUBLIN EXCHANGE)		62,091		69,362
	9,600	DCC PLC		234,006		227,130
	6,124	ELAN CORP. PLC(b)		36,901		84,968
	93,651	EXPERIAN PLC		710,182		1,273,290
	33,826	ICON PLC ADR(b)(c)		672,709		578,763
	1,776	KERRY GROUP PLC, CLASS A		35,054		65,017
	11,192	SHIRE PLC		130,296		389,848
	1,700	SHIRE PLC ADR(c)		160,981		176,630
	17,323	SMURFIT KAPPA GROUP PLC(b)		101,972		104,705
	58,632	WPP PLC		556,646		615,062
				4,621,362		6,169,443		2.02	%
Israel:
	85,992	BANK HAPOALIM BM		356,731		280,247
	18,000	BANK LEUMI LE-ISRAEL BM		61,393		51,530
	25,562	BEZEQ THE ISRAELI TELECOMMUNICATION CORP. LTD.		53,201		46,831
	2,000	ELBIT SYSTEMS LTD.		89,922		82,131
	53	ISRAEL (THE) CORP. LTD.		37,899		33,099
	8,857	ISRAEL CHEMICALS LTD.		105,188		91,801
	96,000	ISRAEL DISCOUNT BANK LTD., CLASS A(b)		159,546		128,470
	33,339	MIZRAHI TEFAHOT BANK LTD.		308,269		263,580
	6,816	PARTNER COMMUNICATIONS CO. LTD.		65,918		60,201
	11,598	TEVA PHARMACEUTICAL INDUSTRIES LTD. ADR(c)		504,674		468,095
				1,742,741		1,505,985		0.49	%
Italy:
	12,000	ACEA S.P.A.		120,512		75,917
	26,031	ASSICURAZIONI GENERALI S.P.A.		405,603		391,831
	4,848	ATLANTIA S.P.A.		76,988		77,618
	12,162	AUTOGRILL S.P.A.		72,812		118,687
	91,413	BANCO POPOLARE SCARL		152,031		118,314
	6,300	DANIELI & C OFFICINE MECCANICHE S.P.A.		146,810		132,991
	171,832	ENEL S.P.A.		891,273		699,221
	40,243	ENI S.P.A.		752,356		833,892
	5,619	EXOR S.P.A.		100,186		113,088
	24,375	FIAT INDUSTRIAL S.P.A.(b)		141,398		209,006
	10,667	FIAT S.P.A.		28,452		49,012
	36,000	FINMECCANICA S.P.A.		441,396		133,166
	90,049	INTESA SANPAOLO S.P.A.		161,397		150,814
	1,095	LUXOTTICA GROUP S.P.A.		14,342		30,754
	72,000	MEDIASET S.P.A.		191,613		199,236
	19,771	MEDIOBANCA S.P.A.		152,640		113,769
	34,777	MEDIOLANUM S.P.A.		120,164		135,393
	2,966	PRYSMIAN S.P.A.		29,515		36,834
	3,842	SAIPEM S.P.A.		66,811		163,350
	40,318	SNAM RETE GAS S.P.A.		174,297		177,734
	15,445	SOCIETA INIZIATIVE AUTOSTRADALI E SERVIZI S.P.A.		128,115		116,343
	5,059	TENARIS S.A.		50,651		93,502
	22,370	TERNA RETE ELETTRICA NAZIONALE S.P.A.		71,955		75,394

See accompanying notes to the financial statements. 76 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Italy (Cont’d):
	9,971	UNICREDIT S.P.A.	$	116,338		82,848
	49,543	UNIONE DI BANCHE ITALIANE S.C.P.A.		270,288		203,012
				4,877,943		4,531,726		1.49	%
Japan:
	24,300	ADERANS CO. LTD.(b)		283,683		312,555
	44,000	AEON CO. LTD.		321,555		604,245
	4,800	AEON CREDIT SERVICE CO. LTD.		49,903		75,833
	1,100	AEON MALL CO. LTD.		23,091		23,352
	2,300	AISIN SEIKI CO. LTD.		37,584		65,562
	17,000	AJINOMOTO CO., INC.		136,093		204,083
	88,000	ALL NIPPON AIRWAYS CO. LTD.		271,021		245,814
	2,000	AMADA CO. LTD.		10,582		12,681
	15,000	ASAHI GLASS CO. LTD.		80,697		125,895
	11,100	ASAHI GROUP HOLDINGS LTD.		182,090		243,722
	74,000	ASAHI KASEI CORP.		409,280		446,103
	7,600	ASTELLAS PHARMA, INC.		243,758		309,060
	11,000	BANK OF KYOTO (THE) LTD.		98,298		94,753
	37,000	BANK OF YOKOHAMA (THE) LTD.		164,514		174,980
	1,300	BENESSE HOLDINGS, INC.		48,395		62,915
	13,800	BRIDGESTONE CORP.		205,726		312,867
	22,500	BROTHER INDUSTRIES LTD.		255,948		276,249
	29,100	CANON, INC.		925,802		1,289,238
	29	CENTRAL JAPAN RAILWAY CO.		162,730		244,905
	5,200	CENTURY TOKYO LEASING CORP.		101,825		98,300
	15,000	CHIBA BANK (THE) LTD.		81,968		96,663
	18,000	CHUBU ELECTRIC POWER CO., INC.		308,559		336,059
	1,900	CHUGAI PHARMACEUTICAL CO. LTD.		30,706		31,326
	11,800	CHUGOKU ELECTRIC POWER (THE) CO., INC.		185,442		206,814
	7,900	CITIZEN HOLDINGS CO. LTD.		31,581		45,880
	4,500	COCA-COLA WEST CO. LTD.		76,049		78,051
	73,219	CREDIT SAISON CO. LTD.		908,590		1,467,828
	42,000	DAI NIPPON PRINTING CO. LTD.		418,468		403,800
	5,000	DAIHATSU MOTOR CO. LTD.		40,684		89,257
	38	DAI-ICHI LIFE INSURANCE CO. (THE) LTD.		42,668		37,374
	13,100	DAIICHI SANKYO CO. LTD.		225,226		259,724
	4,200	DAIKIN INDUSTRIES LTD.		122,580		115,029
	14,500	DAINIPPON SUMITOMO PHARMA CO. LTD.		131,146		165,216
	1,200	DAITO TRUST CONSTRUCTION CO. LTD.		42,344		102,899
	10,000	DAIWA HOUSE INDUSTRY CO. LTD.		93,050		119,269
	16,000	DAIWA SECURITIES GROUP, INC.		68,411		49,890
	1,300	DENA CO. LTD.		40,158		38,999
	4,000	DENKI KAGAKU KOGYO K.K.		7,188		14,811
	8,200	DENSO CORP.		185,234		226,497
	2,900	DENTSU, INC.		48,680		88,505
	13,000	DOWA HOLDINGS CO. LTD.		55,385		82,254
	7,000	EAST JAPAN RAILWAY CO.		392,789		445,635
	6,000	EBARA CORP.		23,162		20,658
	7,000	EDION CORP.		63,084		57,114
	3,800	EISAI CO. LTD.		120,732		157,246
	9,500	ELECTRIC POWER DEVELOPMENT CO. LTD.		237,649		252,655
	1,800	FAMILYMART CO. LTD.		52,590		72,731
	3,300	FANUC CORP.		276,592		505,062
	1,100	FAST RETAILING CO. LTD.		136,395		200,081
	47,000	FUJI ELECTRIC CO. LTD.		121,832		128,844
	41,000	FUJI HEAVY INDUSTRIES LTD.		229,647		247,698
	20,300	FUJIFILM HOLDINGS CORP.		551,524		480,804
	31,000	FUJITSU LTD.		124,538		161,104
	72,000	FUKUOKA FINANCIAL GROUP, INC.		279,237		302,149
	15,000	FURUKAWA ELECTRIC CO. LTD.		48,082		34,495
	1	GEO CORP.		1,033		1,038
	1,600	GREE, INC.		53,031		55,129
	6,000	GUNMA BANK (THE) LTD.		31,571		32,975
	12,000	HACHIJUNI BANK (THE) LTD.		67,350		68,442
	400	HAJIME CONSTRUCTION CO. LTD.		7,780		8,222
	2,720	HAKUHODO DY HOLDINGS, INC.		146,468		156,199
	73,000	HANKYU HANSHIN HOLDINGS, INC.		308,754		307,294
	500	HIROSE ELECTRIC CO. LTD.		48,402		43,849

See accompanying notes to the financial statements. 77 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Japan (Cont’d):
	7,000	HIROSHIMA BANK (THE) LTD.	$	26,154		32,559
	600	HISAMITSU PHARMACEUTICAL CO., INC.		17,668		25,413
	3,400	HITACHI CAPITAL CORP.		42,103		47,133
	3,000	HITACHI CHEMICAL CO. LTD.		54,135		52,853
	102,000	HITACHI LTD.		318,968		535,386
	13,500	HITACHI LTD. ADR(c)		717,502		703,890
	25,000	HOKUHOKU FINANCIAL GROUP, INC.		45,996		48,721
	38,400	HONDA MOTOR CO. LTD.		1,057,440		1,171,426
	1,100	HOSHIZAKI ELECTRIC CO. LTD.		24,052		25,839
	4,800	HOYA CORP.		101,897		103,398
	1,600	IBIDEN CO. LTD.		37,951		31,639
	2,700	IDEMITSU KOSAN CO. LTD.		271,144		278,529
	24,000	IHI CORP.		31,334		58,309
	52	INPEX CORP.		293,098		327,665
	9,800	ISETAN MITSUKOSHI HOLDINGS LTD.		85,535		102,751
	31,000	ISUZU MOTORS LTD.		66,138		143,383
	28,000	ITOCHU CORP.		163,531		284,479
	7,700	ITOCHU ENEX CO. LTD.		42,905		43,218
	8,000	J. FRONT RETAILING CO. LTD.		31,099		38,665
	2,000	JACCS CO. LTD.		5,850		5,977
	2,200	JAPAN PETROLEUM EXPLORATION CO.		89,226		86,035
	6	JAPAN REAL ESTATE INVESTMENT CORP.		46,693		46,772
	51	JAPAN RETAIL FUND INVESTMENT CORP.		70,217		75,537
	6,000	JAPAN SECURITIES FINANCE CO. LTD.		34,653		27,128
	22,000	JAPAN STEEL WORKS (THE) LTD.		126,429		152,919
	77	JAPAN TOBACCO, INC.		200,326		362,147
	3,400	JFE HOLDINGS, INC.		76,281		61,578
	4,000	JGC CORP.		53,048		96,039
	5,100	JS GROUP CORP.		59,682		97,735
	3,100	JSR CORP.		39,530		57,192
	5,000	JTEKT CORP.		36,670		49,176
	45	JUPITER TELECOMMUNICATIONS CO. LTD.		27,159		45,603
	45,180	JX HOLDINGS, INC.		203,020		272,951
	7,000	KAJIMA CORP.		15,004		21,463
	11,000	KAMIGUMI CO. LTD.		72,240		94,896
	30,000	KANEKA CORP.		168,655		159,805
	7,600	KANSAI ELECTRIC POWER (THE) CO., INC.		113,716		116,614
	2,000	KANSAI PAINT CO. LTD.		10,449		17,851
	61,700	KAO CORP.		1,548,698		1,685,815
	35,000	KAWASAKI HEAVY INDUSTRIES LTD.		71,135		87,308
	50	KDDI CORP.		240,697		321,559
	13,000	KEIKYU CORP.		95,310		116,710
	5,000	KEIO CORP.		28,322		35,274
	30,000	KEISEI ELECTRIC RAILWAY CO. LTD.		170,073		220,609
	10,200	KEWPIE CORP.		129,359		145,111
	710	KEYENCE CORP.		131,805		171,207
	6,000	KIKKOMAN CORP.		52,867		68,911
	7,000	KINDEN CORP.		60,585		59,115
	49,000	KINTETSU CORP.		153,011		191,623
	15,000	KIRIN HOLDINGS CO. LTD.		169,540		182,412
	57,000	KOBE STEEL LTD.		90,912		88,127
	1,500	KOHNAN SHOJI CO. LTD.		23,819		24,653
	15,100	KOMATSU LTD.		187,238		352,934
	2,300	KONAMI CORP.		36,513		68,879
	3,800	KOSE CORP.		96,604		95,236
	3,100	K’S HOLDINGS CORP.		132,959		122,842
	21,000	KUBOTA CORP.		129,773		175,981
	5,500	KURARAY CO. LTD.		46,234		78,246
	4,300	KURITA WATER INDUSTRIES LTD.		96,931		111,734
	2,700	KYOCERA CORP.		198,000		217,140
	3,000	KYOWA HAKKO KIRIN CO. LTD.		23,089		36,716
	13,300	KYUSHU ELECTRIC POWER CO., INC.		205,903		190,423
	2,800	LAWSON, INC.		120,035		174,798
	17,000	LION CORP.		100,035		100,495
	2,000	MAKITA CORP.		45,574		64,728
	27,000	MARUBENI CORP.		91,249		164,521
	6,500	MARUI GROUP CO. LTD.		32,287		50,670
	53,000	MAZDA MOTOR CORP.(b)		117,012		93,648

See accompanying notes to the financial statements. 78 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Japan (Cont’d):
	5,200	MEIJI HOLDINGS CO. LTD.	$	201,937		215,854
	49,500	MITSUBISHI CHEMICAL HOLDINGS CORP.		206,621		272,682
	28,300	MITSUBISHI CORP.		464,235		571,745
	32,000	MITSUBISHI ELECTRIC CORP.		148,393		306,826
	27,000	MITSUBISHI ESTATE CO. LTD.		353,310		403,410
	17,000	MITSUBISHI GAS CHEMICAL CO., INC.		75,149		94,311
	57,000	MITSUBISHI HEAVY INDUSTRIES LTD.		185,317		242,904
	4,000	MITSUBISHI LOGISTICS CORP.		45,017		44,434
	122,000	MITSUBISHI MATERIALS CORP.		329,608		331,277
	5,000	MITSUBISHI TANABE PHARMA CORP.		54,031		79,123
	353,269	MITSUBISHI UFJ FINANCIAL GROUP, INC.		1,706,666		1,500,855
	2,700	MITSUBISHI UFJ LEASE & FINANCE CO. LTD.		83,878		106,991
	71,000	MITSUI & CO. LTD.		824,847		1,104,175
	16,000	MITSUI CHEMICALS, INC.		40,819		48,851
	20,000	MITSUI FUDOSAN CO. LTD.		254,116		291,547
	3,000	MITSUI MINING & SMELTING CO. LTD.		5,391		7,756
	34,000	MITSUI O.S.K. LINES LTD.		137,301		131,638
	437,020	MIZUHO FINANCIAL GROUP, INC.		723,730		590,500
	17,000	MORINAGA MILK INDUSTRY CO. LTD.		68,235		65,819
	14,180	MS&AD INSURANCE GROUP HOLDINGS		303,657		262,713
	3,600	MURATA MANUFACTURING CO. LTD.		162,615		184,984
	900	NAGASE & CO. LTD.		9,638		9,810
	65,000	NAGOYA RAILROAD CO. LTD.		171,000		174,811
	1,500	NAMCO BANDAI HOLDINGS, INC.		14,652		21,359
	41,000	NEC CORP.(b)		114,733		83,099
	3,000	NGK INSULATORS LTD.		44,485		35,625
	3,000	NGK SPARK PLUG CO. LTD.		28,359		37,223
	1,600	NIDEC CORP.		75,128		139,069
	11,100	NIFCO, INC.		255,342		310,205
	7,800	NIKON CORP.		115,961		173,696
	2,200	NINTENDO CO. LTD.		369,606		302,980
	11	NIPPON BUILDING FUND, INC.		90,970		90,037
	21,000	NIPPON ELECTRIC GLASS CO. LTD.		218,680		207,903
	72,000	NIPPON EXPRESS CO. LTD.		269,535		280,633
	6,000	NIPPON MEAT PACKERS, INC.		72,315		74,524
	11,000	NIPPON SHEET GLASS CO. LTD.		30,764		20,580
	48,000	NIPPON STEEL CORP.		129,984		119,737
	21,300	NIPPON TELEGRAPH & TELEPHONE CORP.		944,460		1,088,955
	90,000	NIPPON YUSEN K.K.		331,990		230,353
	91,000	NISHI-NIPPON CITY BANK (THE) LTD.		250,065		261,288
	5,000	NISSAN CHEMICAL INDUSTRIES LTD.		50,851		48,396
	97,600	NISSAN MOTOR CO. LTD.		667,688		877,489
	2,500	NISSHIN SEIFUN GROUP, INC.		25,731		30,305
	3,000	NISSHINBO HOLDINGS, INC.		23,700		27,050
	1,300	NISSIN FOODS HOLDINGS CO. LTD.		47,622		50,923
	600	NITORI HOLDINGS CO. LTD.		33,819		56,283
	12,100	NITTO DENKO CORP.		399,272		432,947
	3,800	NKSJ HOLDINGS, INC.		92,673		74,550
	43,100	NOMURA HOLDINGS, INC.		145,794		130,472
	12	NOMURA REAL ESTATE OFFICE FUND, INC.		60,411		61,661
	2,700	NOMURA RESEARCH INSTITUTE LTD.		43,930		61,038
	6,000	NSK LTD.		24,006		38,977
	2,000	NTN CORP.		5,258		8,055
	81	NTT DATA CORP.		248,643		258,674
	284	NTT DOCOMO, INC.		404,857		522,108
	12,000	OBAYASHI CORP.		48,665		53,320
	8,000	ODAKYU ELECTRIC RAILWAY CO. LTD.		62,234		77,330
	13,000	OJI PAPER CO. LTD.		49,994		66,715
	4,000	OLYMPUS CORP.		61,766		52,593
	7,300	OMRON CORP.		99,962		146,723
	1,400	ONO PHARMACEUTICAL CO. LTD.		60,256		78,577
	8,000	ONWARD HOLDINGS CO. LTD.		54,094		58,725
	800	ORIENTAL LAND CO. LTD.		50,479		84,502
	5,630	ORIX CORP.		333,643		465,212
	120,000	OSAKA GAS CO. LTD.		446,292		473,959
	1,700	OTSUKA HOLDINGS CO. LTD.		46,385		47,796
	20,100	PANASONIC CORP.		218,199		170,789
	108	RAKUTEN, INC.(b)		55,805		116,182

See accompanying notes to the financial statements. 79 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Japan (Cont’d):
	17,000	RENGO CO. LTD.	$	111,253		118,607
	39,000	RICOH CO. LTD.		454,497		339,995
	2,100	RICOH LEASING CO. LTD.		46,154		46,955
	1,200	RINNAI CORP.		52,047		85,905
	1,800	ROHM CO. LTD.		99,465		83,956
	15,481	SANKYO CO. LTD.		810,847		783,415
	800	SANRIO CO. LTD.		41,411		41,108
	2,600	SANTEN PHARMACEUTICAL CO. LTD.		85,886		107,082
	35,000	SAPPORO HOKUYO HOLDINGS, INC.		109,166		125,505
	1,532	SBI HOLDINGS, INC.		124,129		112,260
	3,400	SECOM CO. LTD.		133,812		156,817
	4,100	SEGA SAMMY HOLDINGS, INC.		38,822		88,585
	7,700	SEIKO EPSON CORP.		110,865		102,342
	31,930	SEINO HOLDINGS CORP.		241,043		247,662
	13,000	SEKISUI CHEMICAL CO. LTD.		66,177		107,251
	41,000	SEKISUI HOUSE LTD.		389,976		363,823
	13,000	SEVEN & I HOLDINGS CO. LTD.		286,258		362,290
	20,000	SHARP CORP.		174,731		174,876
	4,000	SHIMADZU CORP.		25,419		33,884
	1,000	SHIMAMURA CO. LTD.		61,206		102,249
	1,500	SHIMANO, INC.		58,204		72,887
	2,000	SHIMIZU CORP.		7,530		8,393
	7,500	SHIN-ETSU CHEMICAL CO. LTD.		365,373		369,306
	26,000	SHIONOGI & CO. LTD.		324,230		334,084
	7,400	SHISEIDO CO. LTD.		115,809		136,042
	8,000	SHIZUOKA BANK (THE) LTD.		74,794		84,294
	21,000	SHOWA DENKO K.K.		33,824		42,563
	173	SKY PERFECT JSAT HOLDINGS, INC.		82,814		86,648
	600	SMC CORP.		57,789		96,819
	13,700	SOFTBANK CORP.		217,333		403,513
	21,900	SOJITZ CORP.		34,134		33,859
	11,700	SONY CORP.		242,357		210,077
	6,600	SONY FINANCIAL HOLDINGS, INC.		85,415		97,239
	6,400	SQUARE ENIX HOLDINGS CO. LTD.		120,160		125,641
	61,200	STANLEY ELECTRIC CO. LTD.		912,616		899,290
	115,000	SUMITOMO CHEMICAL CO. LTD.		510,738		419,846
	21,300	SUMITOMO CORP.		207,214		288,359
	13,100	SUMITOMO ELECTRIC INDUSTRIES LTD.		127,803		142,627
	12,000	SUMITOMO HEAVY INDUSTRIES LTD.		39,379		70,002
	38,000	SUMITOMO METAL INDUSTRIES LTD.		78,322		69,119
	18,000	SUMITOMO METAL MINING CO. LTD.		242,021		231,289
	23,200	SUMITOMO MITSUI FINANCIAL GROUP, INC.		724,753		646,247
	85,310	SUMITOMO MITSUI TRUST HOLDINGS, INC.		265,182		250,492
	7,000	SUMITOMO REALTY & DEVELOPMENT CO. LTD.		81,291		122,595
	5,700	SUZUKI MOTOR CORP.		102,733		117,897
	17,400	T&D HOLDINGS, INC.		186,307		162,089
	11,000	TAISEI CORP.		19,821		27,868
	600	TAISHO PHARMACEUTICAL HOLDINGS CO. LTD.(b)		40,190		46,305
	34,000	TAKASHIMAYA CO. LTD.		222,236		246,048
	15,500	TAKEDA PHARMACEUTICAL CO. LTD.		596,985		680,666
	4,500	TDK CORP.		186,697		199,367
	7,000	TEIJIN LTD.		14,861		21,554
	2,600	TERUMO CORP.		95,419		122,452
	2,000	THK CO. LTD.		29,290		39,419
	13,000	TOBU RAILWAY CO. LTD.		49,764		66,378
	1,000	TOHO CO. LTD.		13,412		17,825
	17,000	TOHO GAS CO. LTD.		81,221		108,226
	5,100	TOHOKU ELECTRIC POWER CO., INC.		64,437		48,967
	16,300	TOKIO MARINE HOLDINGS, INC.		411,422		361,075
	19,000	TOKUYAMA CORP.		93,604		60,479
	10,000	TOKYO BROADCASTING SYSTEM HOLDINGS, INC.		133,941		128,624
	18,200	TOKYO ELECTRIC POWER (THE) CO., INC.(b)		81,026		43,272
	3,200	TOKYO ELECTRON LTD.		128,746		162,767
	64,000	TOKYO GAS CO. LTD.		238,072		294,353
	75,000	TOKYU CORP.		303,931		369,306
	62,000	TOKYU LAND CORP.		256,270		234,407
	4,000	TONENGENERAL SEKIYU K.K.		37,796		43,706
	53,000	TOPPAN PRINTING CO. LTD.		422,474		389,742

See accompanying notes to the financial statements. 80 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Japan (Cont’d):
	17,000	TORAY INDUSTRIES, INC.	$	70,413		121,699
	66,000	TOSHIBA CORP.		197,553		270,109
	18,000	TOSOH CORP.		48,357		48,175
	6,000	TOTO LTD.		30,029		46,305
	11,200	TOYO SEIKAN KAISHA LTD.		169,286		152,789
	1,000	TOYO SUISAN KAISHA LTD.		23,261		24,230
	2,300	TOYOTA INDUSTRIES CORP.		51,959		62,603
	48,800	TOYOTA MOTOR CORP.		1,664,486		1,626,270
	1,800	TOYOTA TSUSHO CORP.		14,973		31,828
	2,500	TREND MICRO, INC.(b)		74,501		74,738
	1,700	TSUMURA & CO.		50,505		50,137
	8,000	UBE INDUSTRIES LTD.		13,963		21,931
	2,100	UNICHARM CORP.		42,705		103,542
	133	UNITED URBAN INVESTMENT CORP.		145,147		150,852
	12,600	UNY CO. LTD.		121,599		113,446
	1,000	USHIO, INC.		14,106		14,447
	130	USS CO. LTD.		5,696		11,755
	11,400	WEST JAPAN RAILWAY CO.		382,763		495,435
	236	YAHOO JAPAN CORP.		62,283		76,010
	2,500	YAKULT HONSHA CO. LTD.		42,793		78,766
	5,930	YAMADA DENKI CO. LTD.		403,169		403,712
	25,000	YAMAGUCHI FINANCIAL GROUP, INC.		220,002		238,733
	7,400	YAMAHA MOTOR CO. LTD.		82,524		93,643
	9,000	YAMATO HOLDINGS CO. LTD.		96,669		151,659
	21,000	YOKOHAMA RUBBER (THE) CO. LTD.		123,081		117,866
				50,191,297		56,909,683		18.65	%
Mexico:
	6,700	FOMENTO ECONOMICO MEXICANO S.A.B. DE C.V. ADR(c)		204,664		467,057
	2,225	FRESNILLO PLC		49,821		52,763
				254,485		519,820		0.17	%
Netherlands:
	49,297	AEGON N.V.(b)		185,505		197,856
	3,274	AKZO NOBEL N.V.		134,323		158,312
	10,461	ASML HOLDING N.V.		263,592		439,694
	1,079	CORIO N.V.		43,024		46,930
	6,423	EUROPEAN AERONAUTIC DEFENCE AND SPACE CO. N.V.		81,439		200,763
	520	FUGRO N.V. - CVA		19,413		30,215
	1,747	HEINEKEN HOLDING N.V.		53,733		71,496
	2,822	HEINEKEN N.V.		79,167		130,648
	3,500	IMTECH N.V.		93,726		90,667
	221,383	ING GROEP N.V. - CVA(b)		2,247,191		1,593,114
	88,033	KONINKLIJKE AHOLD N.V.		1,112,569		1,185,538
	7,039	KONINKLIJKE DSM N.V.		355,849		326,609
	74,162	KONINKLIJKE KPN N.V.		985,657		887,394
	72,908	KONINKLIJKE PHILIPS ELECTRONICS N.V.		1,662,361		1,536,234
	3,698	MEDIQ N.V.(b)		58,977		56,310
	2,500	NUTRECO N.V.		194,892		164,503
	42,000	POSTNL N.V.(b)		134,127		133,725
	9,716	QIAGEN N.V.(b)		139,904		133,926
	3,773	RANDSTAD HOLDING N.V.		73,225		111,633
	7,918	REED ELSEVIER N.V.		85,578		92,305
	8,800	ROYAL DUTCH SHELL PLC ADR(c)		605,153		643,192
	63,335	ROYAL DUTCH SHELL PLC, CLASS A		1,523,734		2,332,030
	44,225	ROYAL DUTCH SHELL PLC, CLASS B		1,039,766		1,685,393
	6,056	SBM OFFSHORE N.V.		85,999		124,783
	2,181	SNS REAAL N.V.(b)		6,124		4,771
	17,078	TNT EXPRESS N.V.		152,515		127,627
	28,402	UNILEVER N.V. - CVA		579,364		976,716
	6,193	WOLTERS KLUWER N.V.		101,075		107,047
				12,097,982		13,589,431		4.45	%
New Zealand:
	5,083	CHORUS LTD.(b)		8,483		12,342
	7,267	CONTACT ENERGY LTD.(b)		20,979		29,803
	14,246	FLETCHER BUILDING LTD.		48,135		68,070

See accompanying notes to the financial statements. 81 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
New Zealand (Cont’d):
	25,416	TELECOM CORP. OF NEW ZEALAND LTD.	$	27,958		40,942
	9,200	VECTOR LTD.		17,307		17,684
				122,862		168,841		0.06	%
Norway:
	3,900	AKER SOLUTIONS ASA		45,406		41,054
	13,800	DNB ASA		88,172		135,114
	6,000	FRED OLSEN ENERGY ASA		181,296		201,670
	3,900	KVAERNER ASA(b)		6,506		6,359
	31,521	NORSK HYDRO ASA		131,018		146,218
	12,000	ORKLA ASA		80,407		89,598
	6,600	SEADRILL LTD.		70,381		220,734
	17,748	STATOIL ASA		328,001		455,567
	10,900	TELENOR ASA		62,904		178,809
	4,500	TGS NOPEC GEOPHYSICAL CO. ASA		115,129		99,707
	4,000	YARA INTERNATIONAL ASA		109,527		160,534
				1,218,747		1,735,364		0.57	%
Philippines:
	8,500	GLOBE TELECOM, INC.		172,736		219,599
				172,736		219,599		0.07	%
	Portugal:
	8,464	CIMPOR CIMENTOS DE PORTUGAL SGPS S.A.		39,214		58,247
	13,166	ENERGIAS DE PORTUGAL S.A.		44,835		40,744
	2,881	GALP ENERGIA SGPS S.A., CLASS B		35,487		42,434
	6,408	JERONIMO MARTINS SGPS S.A.(b)		30,015		106,077
	14,258	PORTUGAL TELECOM SGPS S.A. (REGISTERED)		114,811		82,119
				264,362		329,621		0.11	%
Russia:
	9,100	LUKOIL OAO ADR(c)		645,112		481,845
	12,600	SBERBANK OF RUSSIA ADR(b)(c)		185,664		124,992
	12,100	SBERBANK OF RUSSIA ADR (OTC EXCHANGE)(b)(c)		171,650		120,165
				1,002,426		727,002		0.24	%
Singapore:
	19,500	CAPITALAND LTD.		25,646		33,225
	36,000	CAPITAMALL TRUST		34,148		47,183
	5,000	CITY DEVELOPMENTS LTD.		14,259		34,308
	51,000	COSCO CORP. SINGAPORE LTD.		48,134		34,405
	106,500	DBS GROUP HOLDINGS LTD.		846,917		945,889
	51,000	FRASER AND NEAVE LTD.		118,135		243,781
	96,800	GENTING SINGAPORE PLC(b)		48,634		112,691
	130,000	GLOBAL LOGISTIC PROPERTIES LTD.(b)		203,681		175,897
	8,000	JARDINE CYCLE & CARRIAGE LTD.		63,087		296,793
	177,120	KEPPEL CORP. LTD.		877,967		1,269,956
	4,000	K-GREEN TRUST		1,432		2,806
	53,000	OLAM INTERNATIONAL LTD.		79,953		87,035
	44,000	OVERSEA-CHINESE BANKING CORP. LTD.		141,236		265,615
	84,000	SEMBCORP INDUSTRIES LTD.		203,163		262,284
	22,000	SEMBCORP MARINE LTD.		32,803		64,792
	12,000	SINGAPORE AIRLINES LTD.		70,334		93,997
	22,000	SINGAPORE EXCHANGE LTD.		89,462		103,973
	25,000	SINGAPORE PRESS HOLDINGS LTD.		41,026		71,122
	137,000	SINGAPORE TELECOMMUNICATIONS LTD.		242,937		326,375
	305,000	STARHILL GLOBAL REIT		153,931		132,858
	25,000	UNITED OVERSEAS BANK LTD.		160,579		294,318
	59,000	UOL GROUP LTD.		192,887		181,949
	35,000	WILMAR INTERNATIONAL LTD.		146,616		134,920
				3,836,967		5,216,172		1.71%
South Korea:
	265	AMOREPACIFIC GROUP(b)		53,245		58,659
	1,578	CJ CORP.(b)		123,301		105,474
	4,340	DONGBU INSURANCE CO. LTD.		153,355		201,177
	1,270	DOOSAN CORP.		149,957		157,648
	3,640	DOOSAN HEAVY INDUSTRIES AND CONSTRUCTION CO. LTD.(b)		190,670		205,698
	970	GREEN CROSS HOLDINGS CORP.(b)		15,638		12,462
	3,180	GS HOLDINGS(b)		249,031		139,953

See accompanying notes to the financial statements. 82 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
South Korea (Cont’d):
	180	GS HOME SHOPPING, INC.(b)	$	11,109		18,125
	3,030	HALLA CLIMATE CONTROL CORP.(b)		65,581		57,339
	230	HYUNDAI DEPARTMENT STORE CO. LTD.(b)		29,872		32,543
	2,320	HYUNDAI MARINE & FIRE INSURANCE CO. LTD.		61,833		69,479
	9,920	INDUSTRIAL BANK OF KOREA(b)		114,156		107,639
	560	KCC CORP.		128,235		138,785
	173	KISWIRE LTD.(b)		5,374		6,355
	22,870	KOREA EXCHANGE BANK		178,115		145,915
	460	KOREA ZINC CO. LTD.(b)		50,116		121,389
	3,640	KT CORP.(b)		145,775		112,644
	3,170	KT&G CORP.(b)		193,276		223,991
	2,060	LS CORP.(b)		141,821		135,903
	710	OCI CO. LTD.(b)		303,342		135,282
	90	SAMSUNG FIRE & MARINE INSURANCE CO. LTD.		13,128		16,484
	1,770	SAMSUNG HEAVY INDUSTRIES CO. LTD.(b)		43,569		42,867
	1,750	SK C&C CO. LTD.(b)		212,914		177,734
	1,920	SK HOLDINGS CO. LTD.(b)		170,549		201,667
	1,160	SK INNOVATION CO. LTD.(b)		208,609		142,986
	8,180	SK NETWORKS CO. LTD.(b)		80,647		71,717
	20	TAEKWANG INDUSTRIAL CO. LTD.(b)		22,217		21,528
	24,870	WOORI FINANCE HOLDINGS CO. LTD.(b)		233,155		203,580
				3,348,590		3,065,023		1.00	%
Spain:
	9,600	ABENGOA S.A.		247,008		203,771
	4,082	ABERTIS INFRAESTRUCTURAS S.A.		59,419		65,195
	7,760	ACERINOX S.A.		96,174		99,532
	1,133	ACS ACTIVIDADES DE CONSTRUCCION Y SERVICIOS S.A.		43,928		33,581
	86,231	BANCO BILBAO VIZCAYA ARGENTARIA S.A.		665,808		745,535
	15,600	BANCO BILBAO VIZCAYA ARGENTARIA S.A. ADR(c)		133,319		133,692
	44,766	BANCO DE SABADELL S.A.		151,160		169,995
	11,881	BANCO POPULAR ESPANOL S.A.		65,227		54,128
	122,411	BANCO SANTANDER S.A.		902,277		930,007
	17,452	BANKINTER S.A.		82,955		107,292
	13,443	CAIXABANK		41,927		66,029
	390	CONSTRUCCIONES Y AUXILIAR DE FERROCARRILES S.A.		187,283		194,336
	9,700	DISTRIBUIDORA INTERNACIONAL DE ALIMENTACION S.A.(b)		46,997		43,878
	2,531	ENAGAS S.A.		38,143		46,811
	16,085	FERROVIAL S.A.		79,147		194,132
	3,797	FOMENTO DE CONSTRUCCIONES Y CONTRATAS S.A.		150,651		98,484
	4,262	GAS NATURAL SDG S.A.		52,029		73,173
	2,222	GRIFOLS S.A.(b)		31,676		37,387
	56,060	IBERDROLA S.A.		391,650		351,105
	4,941	INDITEX S.A.		202,632		404,678
	13,809	INDRA SISTEMAS S.A.		253,493		175,814
	32,296	MAPFRE S.A.		99,474		102,619
	2,111	RED ELECTRICA CORP. S.A.		88,270		90,341
	13,070	REPSOL YPF S.A.		249,017		401,507
	69,508	TELEFONICA S.A.		1,388,562		1,204,151
				5,748,226		6,027,173		1.98	%
Sweden:
	4,550	ALFA LAVAL AB		35,782		86,208
	7,400	ASSA ABLOY AB, CLASS B		89,466		185,580
	9,200	ATLAS COPCO AB, CLASS A		70,694		197,838
	19,000	ATLAS COPCO AB, CLASS B		320,555		361,095
	3,544	AXFOOD AB		128,166		130,588
	12,000	BOLIDEN AB		159,060		175,229
	10,200	ELECTROLUX AB, CLASS B		151,888		162,580
	18,671	GETINGE AB, CLASS B		390,810		473,123
	13,600	HENNES & MAURITZ AB, CLASS B		274,862		437,301
	3,700	HEXAGON AB, CLASS B		56,830		55,319
	400	HOLMEN AB, CLASS B		8,156		11,490
	17,500	HUSQVARNA AB, CLASS B		64,201		80,630
	10,000	INDUSTRIVARDEN AB, CLASS C(b)		103,927		119,290
	11,800	INVESTOR AB, CLASS B		161,782		220,144
	3,000	KINNEVIK INVESTMENT AB, CLASS B		51,225		58,453

See accompanying notes to the financial statements. 83 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Sweden (Cont’d):
	26,000	MEDA AB, CLASS A	$	211,471		270,487
	1,600	MILLICOM INTERNATIONAL CELLULAR S.A. SDR		87,461		160,293
	1,100	MODERN TIMES GROUP AB, CLASS B		50,174		52,551
	43,400	NORDEA BANK AB		253,480		335,791
	3,200	RATOS AB, CLASS B		51,338		37,545
	12,563	SAAB AB, CLASS B		253,264		259,934
	23,773	SANDVIK AB		201,678		291,705
	7,800	SCANIA AB, CLASS B		65,585		115,599
	34,200	SECURITAS AB, CLASS B		381,213		295,170
	41,800	SKANDINAVISKA ENSKILDA BANKEN AB, CLASS A		171,318		243,485
	2,800	SKANSKA AB, CLASS B		23,703		46,379
	13,800	SKF AB, CLASS B		141,836		291,944
	5,400	SSAB AB, CLASS A		48,129		47,587
	8,600	SVENSKA CELLULOSA AB, CLASS B		78,052		127,455
	8,900	SVENSKA HANDELSBANKEN AB, CLASS A		161,721		234,061
	18,300	SWEDBANK AB, CLASS A		58,744		237,046
	6,600	SWEDISH MATCH AB		95,099		234,276
	8,685	TELE2 AB, CLASS B		128,531		168,970
	45,000	TELEFONAKTIEBOLAGET LM ERICSSON, CLASS B		406,347		460,304
	29,500	TELIASONERA AB		145,684		200,470
	27,000	TRELLEBORG AB, CLASS B		206,592		234,402
	46,800	VOLVO AB, CLASS B		453,534		512,036
				5,742,358		7,612,358		2.50	%
	Switzerland:
	41,343	ABB LTD. (REGISTERED)(b)		560,773		778,155
	25,497	ADECCO S.A. (REGISTERED)(b)		1,207,204		1,068,109
	2,727	ARYZTA A.G.		68,593		131,802
	5,889	BALOISE HOLDING A.G. (REGISTERED)		537,708		403,747
	1,970	BKW S.A.(b)		94,121		76,444
	8,185	CIE FINANCIERE RICHEMONT S.A., CLASS A (BEARER)		130,638		413,986
	22,000	CLARIANT A.G. (REGISTERED)(b)		351,715		217,112
	11,893	CREDIT SUISSE GROUP A.G. (REGISTERED)(b)		331,251		279,432
	28,000	FERREXPO PLC		170,879		116,882
	680	FLUGHAFEN ZUERICH A.G. (REGISTERED)		252,783		235,998
	3,339	GAM HOLDING A.G.(b)		20,061		36,258
	1,115	GEBERIT A.G. (REGISTERED)(b)		117,053		214,850
	174	GIVAUDAN S.A. (REGISTERED)(b)		109,479		165,788
	6,556	GLENCORE INTERNATIONAL PLC(b)		40,864		39,910
	650	HELVETIA HOLDING A.G. (REGISTERED)		204,462		204,135
	3,916	HOLCIM LTD. (REGISTERED)(b)		168,212		209,489
	6,304	JULIUS BAER GROUP LTD.(b)		160,169		246,568
	967	KUEHNE & NAGEL INTERNATIONAL A.G. (REGISTERED)		57,750		108,608
	55	LINDT & SPRUENGLI A.G. (PARTICIPATION CERTIFICATE)		90,640		163,595
	3	LINDT & SPRUENGLI A.G. (REGISTERED)		75,352		100,252
	6,301	LOGITECH INTERNATIONAL S.A. (REGISTERED)(b)		70,452		49,203
	1,693	LONZA GROUP A.G. (REGISTERED)(b)		105,411		100,030
	89,048	NESTLE S.A. (REGISTERED)		3,181,057		5,119,172
	87,829	NOVARTIS A.G. (REGISTERED)		3,692,210		5,021,044
	36,000	OC OERLIKON CORP. A.G. (REGISTERED)(b)		253,647		192,776
	11,411	PANALPINA WELTTRANSPORT HOLDING A.G. (REGISTERED)(b)		877,772		1,168,640
	14,410	PARGESA HOLDING S.A. (BEARER)		931,106		943,454
	12,394	ROCHE HOLDING A.G. (GENUSSCHEIN)		1,602,744		2,100,566
	7,550	ROCHE HOLDING A.G. ADR(c)		303,461		321,252
	755	SCHINDLER HOLDING A.G. (PARTICIPATION CERTIFICATE)		34,888		87,932
	329	SCHINDLER HOLDING A.G. (REGISTERED)		38,313		38,212
	121	SGS S.A. (REGISTERED)		130,564		200,308
	27	SIKA A.G. (BEARER)		52,140		50,877
	1,300	SONOVA HOLDING A.G. (REGISTERED)(b)		84,464		135,975
	17,678	STMICROELECTRONICS N.V.		104,709		105,043
	635	SULZER A.G. (REGISTERED)		30,609		67,872
	475	SWATCH GROUP (THE) A.G. (BEARER)		59,791		177,746
	2,391	SWATCH GROUP (THE) A.G. (REGISTERED)		61,462		159,344
	4,325	SWISS LIFE HOLDING A.G. (REGISTERED)(b)		360,148		397,816
	11,031	SWISS RE A.G.(b)		326,129		562,160
	451	SWISSCOM A.G. (REGISTERED)		148,509		170,878
	1,734	SYNGENTA A.G. (REGISTERED)(b)		377,174		507,649
	65,057	TE CONNECTIVITY LTD.		1,346,324		2,004,406

See accompanying notes to the financial statements. 84 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
Switzerland (Cont’d):
	3,564	TRANSOCEAN LTD.	$	195,878		136,822
	4,513	WOLSELEY PLC		70,476		149,421
	35,679	XSTRATA PLC		288,752		541,889
	3,315	ZURICH FINANCIAL SERVICES A.G.(b)		573,168		749,936
				20,051,065		26,471,543		8.68	%
Thailand:
	1,196,566	THAI BEVERAGE PCL		268,860		226,017
				268,860		226,017		0.07	%
	United Kingdom:
	11,608	3I GROUP PLC		38,159		32,628
	2,834	ADMIRAL GROUP PLC		35,119		37,497
	125,000	AFREN PLC(b)		290,716		166,360
	2,907	AGGREKO PLC		87,133		91,056
	4,578	AMEC PLC		34,931		64,518
	21,888	ANGLO AMERICAN PLC		453,848		808,647
	21,100	ANGLO AMERICAN PLC ADR(c)		372,692		382,965
	4,811	ANTOFAGASTA PLC		33,978		90,776
	22,199	ARM HOLDINGS PLC		101,371		204,086
	3,799	ASSOCIATED BRITISH FOODS PLC		35,240		65,309
	25,536	ASTRAZENECA PLC		927,228		1,179,773
	10,000	ASTRAZENECA PLC ADR(c)		461,598		462,900
	67,839	AVIVA PLC		252,388		316,895
	5,239	BABCOCK INTERNATIONAL GROUP PLC		47,416		59,840
	103,246	BAE SYSTEMS PLC		475,321		457,119
	68,000	BALFOUR BEATTY PLC		287,866		279,631
	251,625	BARCLAYS PLC		873,845		687,937
	58,418	BG GROUP PLC		917,965		1,248,768
	36,463	BHP BILLITON PLC		769,878		1,063,141
	5,400	BHP BILLITON PLC ADR(c)		424,475		315,306
	317,112	BP PLC		2,120,649		2,267,781
	63,994	BRITISH AMERICAN TOBACCO PLC		1,725,235		3,036,549
	11,630	BRITISH LAND CO. PLC		61,579		83,531
	17,468	BRITISH SKY BROADCASTING GROUP PLC		116,486		198,705
	486,009	BT GROUP PLC		1,158,344		1,440,817
	5,069	BUNZL PLC		39,524		69,588
	8,202	BURBERRY GROUP PLC		40,549		150,937
	40,577	CAIRN ENERGY PLC(b)		155,293		167,177
	16,980	CAPITA GROUP PLC		162,367		165,730
	6,025	CAPITAL & COUNTIES PROPERTIES PLC		6,933		17,272
	6,025	CAPITAL SHOPPING CENTRES GROUP PLC		23,472		29,221
	10,534	CARNIVAL PLC		366,702		347,789
	31,729	CARPETRIGHT PLC		338,549		236,514
	82,257	CENTRICA PLC		290,637		369,556
	11,669	COBHAM PLC		30,337		33,235
	315,090	COMPASS GROUP PLC		2,095,337		2,989,748
	8,154	COMPUTACENTER PLC		60,118		42,370
	33,598	COOKSON GROUP PLC		275,788		265,577
	108,000	DEBENHAMS PLC		95,208		98,200
	106,313	DIAGEO PLC		1,431,414		2,322,121
	46,724	DRAX GROUP PLC		346,422		395,453
	2,968	ENQUEST PLC(b)		3,713		4,261
	24,458	ESSAR ENERGY PLC.(b)		94,201		65,101
	11,872	EURASIAN NATURAL RESOURCES CORP. PLC		106,253		117,165
	64,094	FIRSTGROUP PLC		328,053		336,429
	37,699	G4S PLC		134,529		159,125
	91,912	GLAXOSMITHKLINE PLC		1,410,189		2,100,348
	3,000	GREENE KING PLC		24,323		22,698
	17,505	HAMMERSON PLC		69,535		97,864
	36,031	HAYS PLC		49,874		35,867
	354,483	HSBC HOLDINGS PLC		2,564,079		2,703,210
	21,813	ICAP PLC		124,343		117,511
	11,465	IMI PLC		43,254		135,315
	18,809	IMPERIAL TOBACCO GROUP PLC		441,612		711,252
	50,000	INCHCAPE PLC		227,275		227,818
	11,958	INMARSAT PLC		92,794		75,154
	17,590	INTERCONTINENTAL HOTELS GROUP PLC		253,023		316,052

See accompanying notes to the financial statements. 85 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
United Kingdom (Cont’d):
	15,937	INTERNATIONAL CONSOLIDATED AIRLINES GROUP S.A.(b)	$	37,969		35,891
	29,641	INTERNATIONAL POWER PLC		84,802		155,217
	12,127	INVENSYS PLC		29,802		39,737
	24,275	INVESTEC PLC		158,102		127,796
	98,470	ITV PLC		52,339		104,215
	111,306	J. SAINSBURY PLC		593,334		523,572
	2,494	JOHNSON MATTHEY PLC		35,938		71,110
	8,909	KAZAKHMYS PLC		96,358		128,253
	152,914	KINGFISHER PLC		547,309		595,333
	41,068	LANCASHIRE HOLDINGS LTD.		319,566		462,062
	15,511	LAND SECURITIES GROUP PLC		113,585		153,078
	174,802	LEGAL & GENERAL GROUP PLC		205,778		279,060
	1,943,018	LLOYDS BANKING GROUP PLC(b)		1,575,947		781,662
	182,000	LOGICA PLC		343,639		174,387
	7,230	LONDON STOCK EXCHANGE GROUP PLC		86,287		89,262
	2,131	LONMIN PLC		42,554		32,432
	37,725	MAN GROUP PLC		120,515		73,642
	51,083	MARKS & SPENCER GROUP PLC		233,606		246,715
	5,840	MEGGITT PLC		9,420		31,996
	101,812	MICHAEL PAGE INTERNATIONAL PLC		577,156		551,486
	21,029	N BROWN GROUP PLC		87,311		76,058
	83,737	NATIONAL GRID PLC		682,819		812,748
	2,148	NEXT PLC		36,823		91,299
	110,421	OLD MUTUAL PLC		133,905		232,354
	12,536	PEARSON PLC		148,820		235,561
	3,761	PETROFAC LTD.		71,320		84,164
	1,900	PROVIDENT FINANCIAL PLC		32,564		27,765
	53,918	PRUDENTIAL PLC		337,248		534,630
	720,674	QINETIQ GROUP PLC		1,388,956		1,484,025
	2,185	RANDGOLD RESOURCES LTD.		159,057		223,443
	213,034	RAVEN RUSSIA LTD.		169,113		172,033
	9,834	RECKITT BENCKISER GROUP PLC		388,763		485,642
	208,801	REED ELSEVIER PLC		1,643,561		1,682,901
	36,637	RESOLUTION LTD.		143,696		143,036
	98,541	REXAM PLC		500,825		539,889
	24,886	RIO TINTO PLC		777,698		1,207,713
	30,518	ROLLS-ROYCE HOLDINGS PLC(b)		139,944		353,789
	106,898	ROYAL BANK OF SCOTLAND GROUP PLC(b)		39,096		33,500
	136,259	RSA INSURANCE GROUP PLC		244,217		222,607
	15,817	SABMILLER PLC		272,321		556,722
	21,731	SAGE GROUP (THE) PLC		74,327		99,284
	101,441	SAVILLS PLC		477,242		516,079
	5,566	SCHRODERS PLC		79,235		113,579
	10,277	SEGRO PLC		36,889		33,276
	7,999	SERCO GROUP PLC		42,799		58,881
	4,954	SEVERN TRENT PLC		76,220		115,092
	21,324	SMITH & NEPHEW PLC		162,110		207,136
	5,313	SMITHS GROUP PLC		80,666		75,495
	13,000	SPECTRIS PLC		268,445		260,229
	18,671	SSE PLC		331,442		374,328
	34,993	STANDARD CHARTERED PLC		515,595		765,686
	141,103	STANDARD LIFE PLC		386,496		452,058
	3,900	SUBSEA 7 S.A.(b)		96,867		72,391
	3,419	TATE & LYLE PLC		36,262		37,406
	126,000	TAYLOR WOODROW PLC(b)		73,622		73,377
	133,626	TESCO PLC		668,051		837,220
	20,173	TULLOW OIL PLC		327,851		439,215
	2,333	UBM PLC		13,794		17,296
	21,707	UNILEVER PLC		463,177		729,147
	57,958	UNILEVER PLC ADR(c)		1,546,068		1,942,752
	13,660	UNITED UTILITIES GROUP PLC		111,980		128,553
	6,150	VEDANTA RESOURCES PLC		116,202		96,939
	928,295	VODAFONE GROUP PLC		1,671,709		2,579,022
	25,000	VODAFONE GROUP PLC ADR(c)		642,332		700,750
	3,202	WEIR GROUP (THE) PLC		100,740		101,043
	3,994	WHITBREAD PLC		87,292		97,007

See accompanying notes to the financial statements. 86 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2011

Shares		Security	Cost		Fair value (a)		Percent of net assets
United Kingdom (Cont’d):
	76,000	WILLIAM HILL PLC	$	274,578		239,354
	42,339	WM MORRISON SUPERMARKETS PLC		156,009		214,478
				45,409,223		55,202,051		18.09	%
United States:
	56,600	ARCH CAPITAL GROUP LTD.(b)		1,103,898		2,107,218
	6,600	BROOKFIELD OFFICE PROPERTIES, INC.		94,023		103,449
	9,091	BROOKFIELD OFFICE PROPERTIES, INC. (NEW YORK EXCHANGE)(b)		84,537		142,183
	3,384	KRAFT FOODS, INC., CLASS A		10,684		126,426
	38,751	SIGNET JEWELERS LTD.		752,909		1,703,494
	6,500	SIMS METAL MANAGEMENT LTD.		91,939		84,062
	1,159	SYNTHES, INC. (REGISTERED)(d)(e)		141,367		194,333
	9,775	THOMSON REUTERS CORP.		254,637		260,699
				2,533,994		4,721,864		1.55	%
		Sub-total Common Stocks:		247,602,593		295,259,161		96.78	%
Preferred Stocks:
Brazil:
	14,200	PETROLEO BRASILEIRO S.A. ADR(c)		448,224		333,558
	11,000	VALE S.A. ADR(c)		172,836		226,600
				621,060		560,158		0.19	%
Germany:
	1,521	BAYERISCHE MOTOREN WERKE A.G.		49,612		71,952
	2,360	HENKEL A.G. & CO. KGAA		60,940		136,200
	1,943	JUNGHEINRICH A.G.(b)		63,561		47,630
	4,187	PORSCHE AUTOMOBIL HOLDING S.E.		207,723		224,082
	22,479	PROSIEBENSAT.1 MEDIA A.G.		408,889	��	410,663
	3,746	RWE A.G. (NON VOTING)		104,122		123,319
	2,665	VOLKSWAGEN A.G.		183,670		399,251
				1,078,517		1,413,097		0.46	%
		Sub-total Preferred Stocks:		1,699,577		1,973,255		0.65	%
Corporate Bonds:
United Kingdom:
	253,289	HSBC BANK PLC, EXP. 9/12/14(b)		1,047,983		1,221,777
		Sub-total Corporate Bonds:		1,047,983		1,221,777		0.40	%
Rights:
Austria:
	10,586	IMMOEAST A.G.(b)		—		—
		Sub-total Rights:		—		—		0.00	%
Short-Term Investments:
	2,073,315	NORTHERN INSTITUTIONAL GOVERNMENT SELECT PORTFOLIO, 0.01%(f)		2,073,315		2,073,315
		Sub-total Short-Term Investments:		2,073,315		2,073,315		0.68	%
		Grand total(g)	$	252,423,468		300,527,508		98.51	%

See accompanying notes to the financial statements. 87 (Continued)

CLEARWATER INVESTMENT TRUST

Schedule of Investments - Clearwater International Fund

December 31, 2011

Notes to Schedule of Investments:

(a)	Securities are valued in accordance with procedures described in note 2 to the financial statements.
(b)	Currently non-income producing assets.
(c)	Securities are American Depositary Receipts of companies based outside of the United States representing 3.05% of net assets.
(d)	Security exempt from registration under Rule 144A of the Securities Act of 1933. This security may not be publicly sold without registration under the Securities Act of 1933. The value of this security is determined by valuations supplied by a pricing service or brokers, or if not available in accordance with procedures established by the Board of Trustees of the Fund.
(e)	Restricted security that has been deemed illiquid. At December 31, 2011 the value of this restricted illiquid security amounted to approximately $194,333 or 0.06% of net assets. Additional information on this restricted illiquid security is as follows:

SECURITY		ACQUISITION AND ENFORCEABLE DATE		ACQUISITION COST
	SYNTHES,INC.(REGISTERED)		3/8/10 - 11/10/10	$	141,367

(f)	The short-term investment is a money market portfolio of the investment company, Northern Institutional Funds. At December 31, 2010, the value of the Fund’s investment in the Government Select Portfolio of the Northern Institutional Funds was approximately $7,747,967 with net sales of approximately $5,674,652 during the fiscal year ended December 31, 2011.
(g)	At December 31, 2011, the cost for Federal income tax purposes was $253,834,655. The aggregate gross unrealized appreciation and depreciation of investments in securities based on this cost were as follows:

Gross unrealized appreciation	$	61,330,358
Gross unrealized depreciation		(14,637,505	)
Net unrealized appreciation	$	46,692,853

At December 31, 2011, the industry sectors for the Clearwater International Fund were:

Industry Sector	Percent of Long-Term Investments
Consumer Discretionary		12.58	%
Consumer Staples		11.89
Energy		8.98
Financials		20.90
Health Care		8.39
Industrials		13.69
Information Technology		4.98
Materials		10.16
Telecommunication Services		4.85
Utilities		3.58
		100.00	%

At December 31, 2011, the Clearwater International Fund’s investments were denominated in the following currencies:

Concentration by Currency	Percent of Long-Term Investments
Euro		22.41	%
British Pound		19.58
Japanese Yen		18.82
United States Dollar		13.78
Swiss Franc		7.77
Australian Dollar		5.93
All other currencies less than 5%		11.71
		100.00	%

See accompanying notes to the financial statements. 88 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2011

At December 31, 2011, the Clearwater International Fund had outstanding forward foreign currency exchange contracts as follows:

Contracts To Deliver Currency	Amount (Local Currency)		In Exchange For Currency		Amount (Local Currency)		Settlement Date		Unrealized Gain (Loss)			Counterparty
Danish Krone		862,763		United States Dollar		150,229		1/3/12	$	5			Northern Trust
Euro		13,216		United States Dollar		17,108		1/3/12		3			Northern Trust
Euro		22,823		United States Dollar		29,544		1/3/12		4			Northern Trust
Euro		430,386		United States Dollar		557,135		1/3/12		85			Northern Trust
Euro		44,739		United States Dollar		58,004		1/3/12		98			Northern Trust
Hong Kong Dollar		460,346		United States Dollar		59,232		1/3/12		(36	)		Deutsche Bank
Swiss Franc		79,755		United States Dollar		84,702		1/3/12		(209	)		Deutsche Bank
United States Dollar		134,141		Euro		103,464		1/3/12		(227	)		CSFB Global
British Pound		18,753		United States Dollar		28,857		1/4/12		(264	)		Northern Trust
Danish Krone		236,285		United States Dollar		41,211		1/4/12		69			Northern Trust
Euro		57,680		United States Dollar		74,666		1/4/12		11			Northern Trust
Euro		303,402		United States Dollar		393,361		1/4/12		664			Northern Trust
Hong Kong Dollar		14,355		United States Dollar		1,848		1/4/12		-*			Northern Trust
Singapore Dollar		39,964		United States Dollar		30,678		1/4/12		(133	)		Northern Trust
United States Dollar		267,253		Euro		206,133		1/4/12		(453	)		CSFB Global
British Pound		310,245		United States Dollar		481,500		1/5/12		(275	)		Northern Trust
Japanese Yen		15,160,217		United States Dollar		194,912		1/5/12		(2,070	)		Northern Trust
Japanese Yen		16,948,634		United States Dollar		218,158		1/5/12		(2,061	)		Deutsche Bank
Japanese Yen		391,868		United States Dollar		5,037		1/5/12		(55	)		Northern Trust
Swiss Franc		254,336		United States Dollar		271,002		1/5/12		214			Northern Trust
Japanese Yen		15,784,600		United States Dollar		203,909		1/6/12		(1,188	)		Northern Trust
Japanese Yen		397,185,878		United States Dollar		5,173,510		2/16/12		9,094			Northern Trust
United States Dollar		733,281		Japanese Yen		56,283,016		2/16/12		(1,461	)		Northern Trust
									$	1,815

* Amount rounds to less than $1.

The Clearwater International Fund did not have any spot foreign currency transactions outstanding as of December 31, 2011.

See accompanying notes to the financial statements. 89 (Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments – Clearwater International Fund
December 31, 2011

See accompanying notes to the financial statements. 90

Item 2.  Code of Ethics

As of December 31, 2011, the Board of Trustees of Clearwater Investment Trust (the “Trust”) has adopted a code of ethics that applies to the Registrant’s President/Chief Executive Officer and Treasurer/Chief Financial Officer. For the fiscal year ended December 31, 2011, there were no amendments to a provision of its code of ethics, nor were there any waivers granted from a provision of the code of ethics. A copy of its code of ethics is filed with this Form N-CSR under Item 12(a)(1).

Item 3.  Audit Committee Financial Expert

The Board of Trustees of the Trust consists of six members, four of whom are Independent Trustees as defined by the Investment Company Act of 1940. The Board of Trustees does not include an “audit committee financial expert” as defined by Section 407 of the Sarbanes-Oxley Act of 2002 and the rules promulgated thereunder. Given the restrictive nature of the definition of an “audit committee financial expert”, the Board of Trustees have determined that no current member of the Board of Trustees of the Trust qualifies as an “audit committee financial expert”. Furthermore, the Board of Trustees have determined that given the nature of investment company financial statements in general and the investment policies of the Trust’s fund offerings in particular that the independent trustees possess the necessary skills and experience to perform the functions of the audit committee.

Item 4.  Principal Accountant Fees and Services

(a)	Audit Fees		2011 = $83,600	2010 = $80,350
(b)	Audit-Related Fees		2011 = $0	2010 = $0
(c)	Tax Fees		2011 = $21,500	2010 = $20,000
(d)	All Other Fees		2011 = $0	2010 = $0
(e)
	1.	The Independent Trustees have not adopted pre-approval policies and procedures regarding the provision of audit or non-audit services to the trust, as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X, as they require that all such proposed services be approved by them in advance.
	2.	No services were pre-approved by the Independent Trustees pursuant to paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(f)	Not applicable.
(g)	Non-Audit Related Fees Provided to the Trust or to the Trust’s Investment Adviser.
	2011 = $0		2010 = $0
(h)	Not applicable.

Item 5.  Audit Committee of Listed Registrants

The Audit Committee includes the four members of the Board of Trustees who have been deemed independent. The Audit Committee has adopted a charter.

Item 6.  Investments

See Item 1.

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable (the Trust is an open-end management investment company)

Item 8.  Portfolio Managers of Closed-End Management Investment Companies

Not applicable (the Trust is an open-end management investment company)

Item 9.  Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable (the Trust is an open-end management investment company)

Item 10.  Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to the Board of Trustees.

Item 11.  Controls and Procedures

(a)	The Trust’s principal executive officer and principal financial officer have concluded that the Trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment company Act of 1940, as amended) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
(b)	There have been no significant changes in the Trust’s internal controls over financial reporting since the filing of the last report that have materially affected, or are reasonably likely to materially affect, the Trust’s internal control over financial reporting.

Item 12.  Exhibits

(a)	The Clearwater Investment Trust Code of Ethics for the President, Chief Financial Officer and Treasurer is attached.
(b)	The certifications for each principal executive and principal financial officer of the Trust as required by Rule 30a-2(a) of the Investment Company Act of 1940 are attached.
(c)	No written solicitations to purchase securities were sent or delivered during the period covered by this report by or on behalf of the Trust.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Clearwater Investment Trust
By	/s/ George H. Weyerhaeuser, Jr.
	George H. Weyerhaeuser, Jr., Chairman
Date:  March 9, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Clearwater Investment Trust
By	/s/ George H. Weyerhaeuser, Jr.
	George H. Weyerhaeuser, Jr., Chairman
Date:  March 9, 2012

Clearwater Investment Trust
By	/s/ George H. Weyerhaeuser, Jr.
	George H. Weyerhaeuser, Jr., Treasurer
Date:  March 9, 2012