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: December 31

Date of reporting period: December 31, 2012

Item 1. Reports to Stockholders

CLEARWATER INVESTMENT TRUST

Clearwater Core Equity Fund
Clearwater Small Companies Fund
Clearwater Tax-Exempt Bond Fund
Clearwater International Fund

Annual Report
for the year ended
December 31, 2012

Letter to our shareholders (unaudited)

February 28, 2013

We are pleased to present this annual report, which provides you information as to the performance and holdings of your Clearwater Funds for the year ended December 31, 2012. In a year of positive performance in both the equity and fixed income markets we are particularly pleased with the performance of the Clearwater Small Companies, International and Tax-Exempt Bond Funds. Each Fund outperformed its benchmark for both the one-year and three-year periods ended December 31, 2012. While the Clearwater Core Equity Fund underperformed relative to its benchmark for both periods, we were encouraged by the performance shown by certain subadvisers (which is further described in the following section: Discussion of Clearwater Funds’ Performance) and continue to work together to monitor the results of the multi-manager, multi-style strategy adopted last year.

We encourage you to read this annual report as it contains important information about your Clearwater Funds, including commentary provided from the managers who act as subadvisers to the Funds. In addition, this report includes information describing the contract renewal process in December 2012, 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 which will be mailed to you this year at the end of April. This annual update of the prospectus (and the related statement of additional information, which is available upon request of your Financial Consultant at Fiduciary Counselling, Inc.) includes detailed discussion of the objective and risks of each Fund and we hope helps you better understand how your shareholder assets are invested and managed.

We hope the information contained within this annual report prepared for you, our shareholders, is helpful in understanding the 2012 results shown by each of the Clearwater Funds. 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

Clearwater Core Equity Fund
The Clearwater Core Equity Fund (formerly the Clearwater Growth 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. Under normal market conditions, the Clearwater Core Equity Fund pursues its investment objective by investing at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in equity securities of U.S. companies. The Clearwater Core Equity Fund’s assets are managed in a “multi-manager, multi-style” approach. The Core Equity 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.

2012 Market Overview:
Despite a year of great uncertainty, including a U.S. presidential election, worries over unemployment and the U.S. “fiscal cliff”, as well as the impact of European sovereign debt concerns, the U.S. stock market performed strongly in 2012. Accommodative policies from the Federal Reserve and other central authorities provided assistance in supporting the U.S. economy and Real Gross Domestic Gross Product grew around 2% for the year, while housing valuations improved and the domestic equity market, as measured by the S&P 500^®, returned 16%.

2012 Performance and 2013 Outlook:
The Clearwater Core Equity Fund’s return for 2012 was 15.6%, net of fees, as compared to 16.4% for the Russell 1000^® Index, the Fund’s benchmark. The portion of the portfolio managed by Parametric to mirror the benchmark gained 16.6%, gross of fees. Parametric was slightly overweight as compared to the benchmark in certain Technology stocks which were strong performers in 2012, and slightly underweight weaker performers such as Dell, resulting in the portion of the fund managed by Parametric outperforming the benchmark.

Commentary on the performance of their specific portfolio in 2012 and their outlook for 2013 is provided below from each of the three “active” managers in the Clearwater Core Equity Fund.

Heartland
2012 Performance: The portion of the Clearwater Core Equity Fund managed by Heartland returned 13.3%, gross of fees, for the year ended December 31, 2012, underperforming its benchmark, the Russell 1000^® Index, which returned 16.4%. Strong stock selection in Industrials, Materials, and Energy were not enough to offset the adverse results from underperformance among certain Consumer Discretionary stocks. Our positions in Information Technology and Financials also played meaningful roles in our underperformance.

2013 Outlook: We continue to have conviction in our portfolio’s positioning. Our overweight in Industrials reflects our belief that the burgeoning natural gas and oilfield activity in the U.S. is likely to drive a significant infrastructure build out. We saw the beginning of this during the fourth quarter of 2012, when our holdings with exposure to this theme propelled our outperformance versus the benchmark in the fourth quarter. Further, our view that exploration and production activity will continue to increase is reflected in many of our Energy holdings, specifically in businesses that provide services to international deep-water exploration companies. Information Technology is an area we remain enthusiastic about overall, though we are making some changes to our positioning. Specifically, we have trimmed the Fund’s exposure to tech stocks, whose catalyst for improvement depends primarily on macroeconomic factors, and are replacing them with companies whose performance is likely to be driven more by their own engineering or product design capabilities.

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For 2013, we have a generally constructive outlook for both the markets and our portfolio. We anticipate a more stable global economic environment, given the improving economic signs coming out of China and segments of Europe. Closer to home, at times it has been easy to be skeptical that our elected officials in Washington will be able to make real progress on vital fiscal matters. Nevertheless, we are hopeful they will be able to achieve a meaningful compromise, and our overall positioning reflects our belief that this could be a year of economic success for the U.S.

Osterweis
2012 Performance: For the twelve months ending December 31, 2012, our portion of the Clearwater Core Equity portfolio generated a total return of 15.5%, gross of fees, versus 16.4% for the Russell 1000^® Index. Our equity holdings outperformed the benchmark with a return of 17.0% for the twelve-month period. However, our full-year portfolio returns, gross of fees, trailed the Russell 1000^® Index, primarily due to our equity holdings not keeping pace with the first quarter 2012 rally in the U.S. market and the portion of the portfolio invested defensively in cash, which slightly depressed overall returns.

2013 Outlook: After a strong year in 2012, we think that positive trends remain in force, suggesting that equities could deliver attractive returns again in 2013. However we would not be surprised to see market volatility in the short term. U.S. economic growth appears to have slowed in recent months in response to “fiscal cliff” uncertainty. U.S. fiscal policy remains, we believe, severely out of balance. In addition, the various pathways back to balance appear blocked by highly partisan politics in Washington. Growth worldwide has slowed over the past year. We believe that this has increased the risk of profit shortfalls and negative earnings revisions. To manage risk related to short-term volatility, but still capitalize on opportunities in the market, we continue to focus on finding underappreciated companies with strong balance sheets, great management and the ability to grow in a challenging economic environment.

Knightsbridge
2012 Performance: For the year ended December 31, 2012, the portion of the Clearwater Core Equity Fund managed by Knightsbridge returned 18.1%, gross of fees, compared to 16.4% for the Russell 1000^® Index. As with the benchmark, our Consumer Discretionary and Financials sector allocations were the best performers and largest contributors for 2012. Investments in the Industrials sector, our second largest allocation, benefitted from signs of modest improvements in the U.S. economy. Individual stock selection, specifically in those sectors, was the main driver behind our outperformance for the year, as those sectors contributed more than double that of their index peers.

2013 Outlook: Going forward, we believe further gains in U.S. stocks could be sustained by a number of factors. U.S. equity mutual fund net outflows have yet to reverse, and an inflow would provide a refreshing tailwind. A release of suppressed demand for corporate expenditures and consumer durable purchases would help boost revenue for companies. An improvement in the U.S. employment picture and a continued U.S. housing recovery would also buy stocks in 2013. Economic news has been encouraging recently, and measures such as corporate bond spreads (as measured by Baa minus Aaa yields) indicate such a pattern could continue. Meanwhile, our portfolio consists of unique, anomalistic stocks selected based on our specific research, which we believe will perform well based on the strength of their businesses and compelling valuations.

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Clearwater Small Companies Fund
The Clearwater Small Companies Fund (formerly the Clearwater Small Cap 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 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 $5 billion at the time of purchase. Equity securities consist primarily of exchange traded common and preferred stocks and convertible 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”).

2012 Market Overview:
Despite the rally in the U.S. stock market, 2012 could also be considered a year of stagnation. Both from a domestic and global perspective, economic challenges abounded. There was considerable uncertainty as demonstrated by both consumer and commercial spending patterns and hiring remained weak. It appears that many investors continued to question the U.S. recovery. Moreover, trends in mutual fund cash flows indicate these investors were hesitant to commit their capital. Nevertheless, even in the face of a number of fearful macroeconomic headlines, such as concern over the Chinese economy, the European sovereign debt crisis, and the U.S. “fiscal cliff”, that seemed to cause many investors to position themselves conservatively, 2012 proved to be a strong year for U.S. equities, with most indices yielding double digit returns. Perhaps it can be attributed to investment dollars searching for a home in the “least bad” spot.

2012 Performance and 2013 Outlook:
The Clearwater Small Companies Fund posted a one-year return of 19.0%, net of fees, handily outperforming its benchmark, the Russell 2000^® Index, which returned 16.4% for the year ended December 31, 2012.

Commentary on the performance of their specific portfolio in 2012 and their outlook for 2013 is provided below from each of the two subadvisers for the Clearwater Small Companies Fund.

Kennedy
2012 Performance: For the year ended December 31, 2012, the portion of the Clearwater Small Companies fund managed by Kennedy Capital Management returned 18.1%, gross of fees, outperforming the 16.4% return of its benchmark, the Russell 2000^® Index. Outperformance was driven by stock selection across most sectors, led by Information Technology and Consumer Staples. We performed well in the Financials sector, although our underweight allocation did detract somewhat from overall performance. Overall, our sector allocations also negatively impacted performance in 2012.

2013 Outlook: Meaningful pockets of strength exist in our economy, which give us some reason for enthusiasm. The U.S. shale energy boom has provided a boost to our economy, as well as a strategic lynchpin for the country. Auto production seems to have recovered from the doldrums of the last few years, helping to support a large labor force and many ancillary businesses. Finally, residential construction is emerging from its long hibernation; not only can this drive a wide swath of the domestic economy, but it can also drive consumption by enriching and emboldening the millions of Americans who own homes. We must also think globally when assessing the factors at play that could impact our portfolio companies’ outlooks. China and Europe look to be through their more difficult economic times. Although 2013 may not be a year of significant improvement for either, we believe these regions are less of a threat to global economic health than they were at this time last year. When we look at the so-called BRIC economies (Brazil, Russia, India and China),

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growth prospects appear to be in excess of domestic prospects. Weighing all of these factors, it does seem that the cyclical tailwinds may exceed the headwinds as we begin to face 2013. Still, we believe our bottom-up stock selection process focuses on capturing values that are likely to supersede any cyclical trends. Examples currently in our portfolio include companies focused on transporting crude oil by rail; using lasers for more industrial applications; and energy efficiency (e.g., in vehicles, in cooking, and in motors).

Keeley
2012 Performance: For the 12 months ended December 31, 2012, our portfolio strongly outperformed its benchmark, the Russell 2000^® Index, returning 26.2%, gross of fees, versus a return of 16.4% for the benchmark. From a sector contribution perspective, the Industrials, Consumer Discretionary, and Financials sectors contributed positively to returns as those sectors had strong stock selection for the year. However, stock selection within the Healthcare and Staple sectors and the underweight portfolio allocation to Information Technology sector detracted from performance. With regard to portfolio construction, we remained comfortable with our sector emphasis: overweight the Industrial and Consumer Discretionary sectors and underweight Technology. While we had also been underweight Financials for some time, we started to add to this sector throughout 2012, with a special emphasis on mutual savings and loan 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. As the year progressed, this enthusiasm resulted in a slight overweight position in Financials relative to the Russell 2000^® Index at the end of the year. Overall, we were pleased to see stock selection play a significant role in our returns for 2012.

2013 Outlook: We believe that the companies that we hold within the Industrial, Consumer Discretionary and Financials sectors are well positioned for a recovery. 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, that 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. Additionally, many developed economies will be forced to consider investments as a means to stimulate job growth and upgrade their languishing infrastructure. We believe that the companies that we hold within the portfolio are well positioned for a recovery.

Due to an environment of historically low interest rates which began in 2009, we have believed for quite some time that this market setting would foster event-driven restructuring. The additional number of spin-offs in 2011 and 2012 and the noticeable increase in merger and acquisition activity late in the year offers strong evidence that low cost financing is providing opportunities for our portfolio companies. Given the Federal Reserve’s well publicized communication to keep interest rates low, we see few reasons why merger and acquisition activity and other forms of restructuring to promote growth will not continue in 2013 and beyond. In a slow growth environment companies have even greater motivation to seek strategic alternatives that could improve efficiency and increase shareholder value. Consequently, we are optimistic that these catalysts will provide a strong tailwind for our portfolio as we head into 2013. In this environment, we believe we can continue to identify attractive opportunities in individual companies and we remain committed our value driven strategy which buys stocks of relatively unknown (spin-offs) and out of favor (below book value) companies.

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Clearwater Tax-Exempt Bond Fund
The Clearwater Tax-Exempt Bond Fund seeks high current income that is exempt from U.S. federal income tax, consistent with preservation of capital. The Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, 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 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.

Sit has provided all of the commentary below regarding the Clearwater Tax-Exempt Bond Fund.

2012 Market Overview:
Tax-exempt fixed income markets enjoyed a strong year in 2012, as modest inflows continued into tax-exempt municipal bond funds and supply, while increasing, remained manageable. Specifically, supply of municipal bonds returned about 27% in 2012 from 2011, although most of the increase consisted of refunding bonds, so net new supply was up only slightly. State and local government tax collections continued to improve from the low recession-driven levels of 2008 and 2009, and have now exceeded pre-recession levels, such that even though assistance from the federal government’s stimulus programs decreased significantly throughout 2012, state and local government finances remain generally on the upswing. The Federal Reserve’s operations, specifically its bond purchase programs, actually have been effective in reducing long-term interest rates, unlike previous quantitative easing. The Federal Reserve’s commitment in December 2012 to hold short-term rates low until unemployment reaches 6.5%, absent significant inflation pressures, has continued to promote a steep yield curve. Concerns about tax reform and a potential reduction of the value of the municipal bond tax exemption increased late in the year, but had little overall effect on the market.

2012 Performance and 2013 Outlook:
The Clearwater Tax-Exempt Bond Fund returned 10.7%, net of fees, for the year ended December 31, 2012. The Fund’s benchmark, the Barclays 5-Year Municipal Bond Index, gained 3.0% over the same period. Given the Federal Reserve’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 most of the year, dropping it to 5.9 years at year-end. For comparison, the Fund’s benchmark, the Barclays 5-Year Municipal Bond Index, had a duration of 4.0 years at December 31, 2012. The Fund’s yield fell during the year, but less than the yield of its benchmark. Revenue bonds significantly outperformed general obligation bonds during 2012, with revenue bonds returning 7.8% for the year, while general obligation bonds returned 5.6%. Furthermore, longer duration outperformed intermediate duration, and lower quality issues outperformed those of higher credit quality, as investors sought yield. The Fund’s performance, due to its heavy emphasis on revenue bonds and its longer duration, significantly exceeded that of its benchmark in 2012.

We expect U.S. domestic growth to remain positive during 2013, although it has slowed from the pace of the third quarter of 2012. Housing appears to be improving, but unemployment remains elevated, and we expect that the drag from increased payroll taxes for all working Americans and significantly increased income tax rates on top earners will be felt. Furthermore, the “fiscal cliff” deal struck by Congress and the Obama

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Administration on January 1 did not address spending cuts. Sequestration cuts of $1.2 billion are scheduled to go into effect on March 1 if Congress and the Obama Administration cannot agree on another plan. Such cuts would certainly be a near-term deterrent to growth. Interest rates, while likely to remain low in absolute terms, may continue to be volatile during 2013, as debt ceiling, deficit reduction and perhaps tax reform discussions ebb and flow. 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 believe the tax-exempt curve should steepen less, with short-term rates remaining low and long-term tax-exempt yields rising somewhat as supply continues at a still manageable level and state and local government finances continue to improve, helping tax-exempt bonds outperform. One potential concern for the U.S. fixed income market will be the various tax reform proposals proffered by President Obama and Republicans in Congress. While we believe any such reform is unlikely in 2013, given the inability of the President and the House to agree on much, any public discussion of its potential form, specifically as it relates to reducing the value of the municipal bond tax exemption, could roil the market.

We expect revenue bonds again to be strong performers in 2013, as the Federal Reserve’s accommodative policies should continue to allay liquidity concerns in the market, and investor focus remains on yield. We believe general obligation bond performance should remain weaker on a relative basis, however, as, despite their recent improvement, many cities, counties and states still have work to do, and recent bankruptcy filings by several cities in California will weigh on the market. Furthermore, potential problems funding retirement pension and healthcare obligations still persist in other places, 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 2013. We anticipate investing any new cash flows into the Fund on maturities in the 5-25 year range.

Clearwater International Fund
The Clearwater International Fund seeks long-term growth of capital. The Fund generally invests at least 80% of the value of its net assets, plus the amount of any borrowings for investment purposes, in equity securities of companies organized or located outside the United States and doing a substantial amount of business outside 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 five subadvisers. Parametric Portfolio Associates (“Parametric”) manages its portion of the portfolio (approximately 50%) to mirror the benchmark, the MSCI World Ex USA Index (net). The Fund also has four “active” managers who each manage approximately 12.5% of the Fund’s assets: Artisan Partners Limited Partnership (“Artisan Partners”), Denver Investments (“Denver”), WCM Investment Management (“WCM”), and Templeton Investment Counsel, LLC (“Templeton”).

The Board of Trustees of the Trust voted to terminate the investment advisory agreements of AXA Rosenberg Investment Management LLC (“AXA Rosenberg”), and Eagle Global Advisors, LLC (“Eagle”) on October 16, 2012. Denver, WCM and Templeton began managing their portion of the Fund’s assets effective October 31, 2012. During the period between October 17, 2012 and October 30, 2012, certain assets of the Fund were managed for transition purposes by Northern Trust.

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2012 Market Overview:
2012 was a great year for equities around the world. It was a particularly good year considering the “wall of worry” the market had to climb. The bricks in that wall were many and piled high—a financial crisis in Europe, high unemployment in the U.S., and leadership transitions in South Korea and China, among others. The impact of those worries was apparent as markets took a breather in the second quarter of the year. New fears about a hard landing in China only made matters worse. These conditions proved transitory, however, as world markets generally bounced back nicely in the second half of 2012. Central banks were certainly the wind at the back of many markets this year. They created excess liquidity and low interest rates by printing money on a large scale and purchasing mainly government bonds, but also mortgage and other types of securities in the U.S., Europe, and Japan. That liquidity, as intended, ended up somewhere and was likely the reason for the great performance of both bond and stock markets around the world during the year.

2012 Performance and 2013 Outlook:
The Clearwater International Fund returned 17.9%, net of fees, for the year ended December 31, 2012, as compared to 16.4% for the MSCI World Ex USA Index (net), the Fund’s benchmark. The portion of the portfolio managed by Parametric to mirror the benchmark returned 16.5%, gross of fees. Parametric’s objective is to closely track the Index using a subset of the Index constituents. The slight outperformance can be attributed to superior stock sampling in Japan and Denmark.

Commentary on the performance of their portfolio in 2012 and their outlook for 2013 is provided below from each of the current four “active” managers in the Clearwater International Fund. Commentary on their performance through October 16, 2012 is also provided below from AXA Rosenberg and Eagle. The Fund’s Advisor, Clearwater Management Company, recommended the termination of these two investment advisory agreements based on its review of each manager’s investment advisory services and investment processes. During the transition period between October 17, 2012 and October 30, 2012, the portion of the Fund previously managed by AXA Rosenberg and Eagle was managed by Northern Trust in a manner designed to minimize turnover and disruption to the Fund prior to turning over management of their respective share of Fund assets to Denver, WCM and Templeton. During this transition period the value of this portion of the portfolio declined by 1.52% as compared to the Fund’s benchmark which declined 1.56% during the same period.

Artisan
2012 Performance: During the twelve-month period ended December 31, 2012, our portion of the Clearwater International Fund returned 24.2%, gross of fees, outperforming the benchmark, MSCI World Ex USA Index (net), which returned 16.4% for the same period. Performance of the following stocks had a positive impact on the portfolio during the period: Compass Group PLC, a catering company; Lloyds Banking Group plc, a banking and financial services provider; Qinetiq Group PLC, a defense company; and Reed Elsevier PLC, a publisher and information provider. Notable detractors included: SANKYO CO., LTD., a pachinko maker; NIFCO INC., a supplier of plastic fasteners; Stanley Electric Co., Ltd., a lighting equipment manufacturer; and SEINO HOLDINGS CO., LTD., a provider of transportation and logistics solutions.

2013 Outlook: We remain focused on the intersection of balance sheet strength, business quality and valuation in our selection of individual portfolio securities and continue to monitor macroeconomic factors, particularly the liquidity created by policies of central banking authorities.

Denver
2012 Performance: Since inception of our portion of the Clearwater International Fund on October 31, 2012, the portfolio returned 5.1%, gross of fees, slightly lagging its index, the MSCI World Ex USA Index (net), which was up 5.2% for the same period. We focus on investing in fast-growing small cap companies around the

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world. Country and sector allocations are a by-product of our stock selection. Performance during the period was aided by Canadian-based credit card issuer and mortgage lender Home Capital Group Inc., and UK-based Diploma PLC. Diploma supplies specialized technical products ranging from hydraulic seals, gaskets, and cylinders to electrical wiring, connectors and fasteners. Detractors from performance included Japanese companies, GREE Inc., a mobile social gaming company, and SMS Co. Ltd., which focuses on nursing and health care. Nevertheless, we continue to believe in the long-term prospects for both GREE and SMS.

2013 Outlook: As we move into 2013, we are optimistic about the companies held in the portfolio. We focus on investing in companies that we believe are fast-growing, high-return, cash generative businesses with sound balance sheets. This focus, coupled with our strict valuation process, has long been the cornerstone of our investment process. We believe this has helped us position the portfolio well going into 2013.

WCM
2012 Performance: The portion of the Clearwater International Fund managed by WCM Investment Management returned 4.2%, gross of fees, for the period from October 31, 2012 through December 31, 2012, compared to 5.2% for the MSCI World Ex USA Index (net), the Fund’s benchmark. The Financials sector continued its strong run, finishing the year with a 31.6% return, almost twice the index. That presented an unsurprising headwind for performance since, at 13% below benchmark, Financials is our largest relative underweight sector. Given our high threshold for transparency and quality, the Financials we do own tend to lag in this kind of environment, so even our 7% weight did not contribute strongly overall to performance. Meanwhile, stock selection was negatively impacted by one of our largest positions in the Consumer Discretionary sector, but beyond that our specific selections contributed positively to performance in the core areas of Consumer Staples, Information Technology, and Health Care.

2013 Outlook: Because the sources of outperformance in 2012 (specifically banks and other Financial sector and lower quality equities) are not, in our view, sustainable, we are especially confident about our high-quality growth approach to the non-U.S. universe. In hindsight, this Financials run-up was not out of the blue: a good number of companies went into 2012 trading at discounts to book value that implied near-death circumstances. But with much of the worst-case economic and political scenarios taken off the table, we don’t expect this environment to persist. Instead, we suspect the market will begin to turn its attention back to self-sustaining, high-quality growth businesses, which, after last year’s relative performance, look even more attractive to us than before.

Templeton
2012 Performance: Since inception of our portion of the Clearwater International Fund on October 31, 2012, the portfolio returned 4.6%, gross of fees, as compared to the MSCI World Ex USA Index (net), which was up 5.2% for the same period. Stock selection in the Consumer Discretionary sector contributed to performance as did Energy and Industrial holdings for the period. However, Information Technology, Financials and Consumer Staples holdings detracted from relative performance for the period.

Regionally, stock selection in Canada contributed to relative performance. Stock selection in Asia and Australia detracted. European holdings contributed slightly to relative performance.

2013 Outlook: We believe the balance between risk and reward in the global financial system has changed dramatically in the last several years. Through increasingly powerful and creative means of financial repression, most governments seem to be stopping at nothing to ensure ample liquidity, competitive currency regimes, and economic and asset reflation. Such “mutually-assured repression” has transferred massive liabilities to the public sector, altering the risk profile of traditional “safe-haven” assets and competitively devaluing many of the world’s reserve currencies. In this environment of negative real interest rates and

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damaged government credibility, we believe equities are the best-positioned asset class to provide yield and long-term appreciation potential and are best equipped to keep pace with inflation. In contrast to the public sector, corporate fundamentals have remained very strong, and we believe investors can still acquire stakes in productive enterprises at reasonable valuations. While challenges remain, we remained positive on Europe given its fundamental stabilization and preponderance of inexpensive, high-yielding stocks with diverse revenue streams that we consider inexpensive at current valuations.

AXA Rosenberg 2012 Performance
The portion of the Clearwater International Fund managed by AXA Rosenberg returned 12.7%, gross of fees, for the period January 1, 2012 through October 16, 2012, as compared to 11.9% for the MSCI World Ex USA Index (net) during the same period. Stock selections in Asia, with the exception of Japan contributed to overall performance. Companies in the Chemicals, Machinery and Metals sectors contributed solidly to performance during the period. However, certain specific portfolio companies detracted from overall performance, specifically Belgian grocer DelHaize Group SA, transportation company First Group Plc, retailer Yamada Denki, and equipment company Seiko Epson.

Eagle 2012 Performance
Our portion of the Clearwater International Fund solidly outperformed the benchmark, returning 13.9%, gross of fees, for the year to date period ended October 16, 2012 versus 11.9% for the MSCI World Ex USA Index (net). The primary driver of our outperformance was stock selection, as the portfolio had positive selection in 7 of the 10 sectors. The top contributing sectors were Industrials, Materials and Consumer Staples. Sector allocation was negative primarily due to our underweight in Financials. The financial sector rallied as European and U.S. Central Bankers began another round of quantitative easing. Country allocation was positive, led by an overweight to Singapore and Canada and an underweight to Japan. Japan continues to lag as it is on the brink of its fifth recession in the last 15 years. Also, negatively impacting our portfolio was a higher than average level of cash.

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Comparison of the Change in Value of a $10,000 Investment in the Clearwater
Core Equity Fund and the Russell 1000^® Index

Comparison of the Change in Value of a $10,000 Investment in the Clearwater Small
Companies 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 USA Index (net)

* Clearwater International Fund inception date.

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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, 2012.

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 July 1, 2012 thru December 31, 2012” 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 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 Funds to funds that charge transaction costs and/or sales charges or redemption fees.

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Actual	Beginning Account Value July 1, 2012	Ending Account Value December 31, 2012	Expenses Paid During the Period July 1, 2012 thru December 31, 2012 *
Core Equity Fund	$1,000.00	$1,072.70	$2.71
Small Companies Fund	$1,000.00	$1,100.40	$5.28
Tax-Exempt Bond Fund	$1,000.00	$1,041.40	$1.85
International Fund	$1,000.00	$1,139.10	$3.23
Hypothetical (5% return before expenses)
Core Equity Fund	$1,000.00	$1,022.52	$2.64
Small Companies Fund	$1,000.00	$1,020.11	$5.08
Tax-Exempt Bond Fund	$1,000.00	$1,023.33	$1.83
International Fund	$1,000.00	$1,022.12	$3.05

* Expenses are equal to the Fund’s annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Expense ratios for the most recent one-half year period may differ from expense ratios based on one-year data in the Financial Highlights. The annualized expense ratios are as follows:

Core Equity Fund	0.52%
Small Companies Fund	1.00%
Tax-Exempt Bond Fund	0.36%
International Fund	0.60%

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 Securities and Exchange Commission (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 1-855-684-9144 or by sending a written request to: The Northern Trust Company, P.O. Box 4766, Chicago, IL 60680-4766 Attn: Clearwater Investment Trust Funds. 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.

Voting Proxies on Fund Portfolio Securities

The funds have established Proxy Voting Policies and Procedures (“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 Funds. Form N-PX is also available from the EDGAR database on the SEC’s Internet site at http://www.sec.gov.

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EXECUTIVE OFFICERS AND TRUSTEES

Information About the Independent Trustees

Name and Age	Positions Held With the Funds	Term of Office	Principal Occupation or Employment During the Last Five Years	Number of Portfolios in the Fund Complex to Be Overseen by the Nominee	Other Directorships Held by the Nominee During the Last 5 Years
James E. Johnson (70) 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 (46)1 30 East 7th Street, Saint Paul, Minnesota 55101	Trustee	Tenure: 13 yrs Term: Indefinite	President and Chief Executive Officer, P&G Manufacturing, Inc. (air filtration equipment, 2002-Present)	4	None
Laura E. Rasmussen (49)1 30 East 7th Street, Saint Paul, Minnesota 55101	Trustee	Tenure: 13 yrs Term: Indefinite	Business Owner, 3 Kittens Needle Arts (textile sales, 2006- Present)	4	None
Edward R. Titcomb III (38) 30 East 7th Street, Saint Paul, Minnesota 55101	Trustee	Tenure: May 2011 - Present Term: Indefinite	Private Client Advisor, Trust Point Inc. (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 (39) 30 East 7th Street, Saint Paul, Minnesota 55101	Trustee	Tenure: 5 yrs 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 the niece or nephew of Mr. Frederick T. Weyerhaeuser (see below).

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Information about the Funds’ Executive Officers and Interested Trustees

Name and Age	Positions Held With the Funds	Term of Office	Principal Occupation or Employment During the Last Five Years	Number of Portfolios in the Fund Complex to Be Overseen by the Nominee	Other Directorships Held by the Nominee During the Last 5 Years
Frederick T. Weyerhaeuser (81)* 30 East 7th Street, Saint Paul, Minnesota 55101	Trustee, Vice President and Secretary	As Trustee; Tenure: 25 yrs Term: Indefinite As Officer; Tenure: 25 yrs Term: Reappointed Annually	Private Investor	4	None
George H. Weyerhaeuser Jr. (59) ** 30 East 7th Street, Saint Paul, Minnesota 55101	Trustee, Chairman, Chief Executive Officer, Treasurer	As Trustee: Tenure: 6 yrs Term: Indefinite As Officer: Tenure: 6 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, Fermi Research Alliance
Jennifer D. Lammers (52) 30 East 7th Street, Saint Paul, Minnesota 55101	Chief Compliance Officer	Tenure: September 2009 – Present Term: Reappointed Annually	Chief Compliance Officer, Clearwater Management Company, Inc. (2009-Present), Chief Compliance Officer and Chief Financial 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
Catherine A. Nguyen (31) 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

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Name and Age	Positions Held With the Funds	Term of Office	Principal Occupation or Employment During the Last Five Years	Number of Portfolios in the Fund Complex to Be Overseen by the Nominee	Other Directorships Held by the Nominee During the Last 5 Years
Marcia Lucas (45) The Northern Trust Company 50 South LaSalle Street Chicago, IL 60603	Assistant Secretary	Tenure: March 2011 – Present Term: Reappointed Annually	The Northern Trust Company, Vice President (2011-Present), Second Vice President (2010- 2011), Partner, Michael Best & Friedrich LLP (2005-2008)	N/A	N/A

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

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

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 1-855-684-9144 or writing the Funds at The Northern Trust Company, P.O. Box 4766, Chicago, IL 60680-4766. The Funds do not have an internet website.

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Approval of the Investment Management and Subadviser Service Agreements

Clearwater Management Company (“CMC”) is responsible for managing the investment programs and strategies for the Core Equity Fund, Small Companies 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.

The Trustees met in-person at a special meeting on October 16, 2012 to consider the retention of three new subadvisers for the International Fund, Denver Investments (“Denver”), Templeton Investment Counsel, LLC (“Templeton”), and WCM Investment Management (“WCM”), as well as the termination of the subadvisory agreements with AXA Rosenberg Investment Management LLC and Eagle Global Advisors, LLC, subadvisers to the International Fund. Prior to the meeting, the Trustees requested, received, and reviewed written responses and supporting materials from Denver, Templeton, and WCM. These written responses were received in response to questions posed to them on behalf of the Trustees. In addition to these materials, the Trustees also reviewed materials presented to them by CMC as to the proposed changes to the International Fund to reallocate assets among the subadvisers to the International Fund. Parametric Portfolio Associates (“Parametric”), another subadviser to the International Fund, had previously managed 60% of the International Fund’s portfolio with a passive strategy. That allocation would be reduced to 50% with the other 50% being allocated among the active managers, including the new subadvisers. CMC further presented information as to the due diligence process in identifying and proposing the three new subadvisers to the Trustees. The Trustees also received information as to proposed subadvisory fees for each new subadviser. During this meeting, counsel to the Funds reviewed with the Trustees the various factors relevant to their consideration of the subadvisory agreements, and the Trustees’ responsibilities related to their review. The Trustees considered information presented throughout the year in addition to the materials presented at the October special Board meeting. 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, the Trustees, including all independent trustees present, approved the Denver, Templeton, and WCM subadvisory agreements for an initial two-year period.

Nature, Extent and Quality of Services Provided
The Trustees considered information presented as to the services to be provided by Denver, Templeton, and WCM, as well as their investment expertise, resources and capabilities. The Trustees reviewed information regarding the financial condition of Denver, Templeton, and WCM as related to their ongoing ability to provide services as specified under their respective

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subadvisory agreements. Based on their analysis of the data presented, the Trustees concluded that they were generally satisfied with the nature and quality of the proposed services for the new subadvisers to the International Fund.

Investment Performance
The Trustees considered the investment performance of Denver, Templeton, and WCM in strategies similar to those that would be utilized for the International Fund as their services to the International Fund had not yet commenced.

Comparative Fees and Cost of Services Provided
The Trustees reviewed the proposed fees to be paid to Denver, Templeton, and WCM. The Trustees reviewed reports describing the total expense ratio of the International Fund in comparison to those of similarly situated funds. The Trustees reviewed information provided by each of the subadvisers as to fees they charge to other subadvisory clients.

Profitability
The Trustees considered that Denver, Templeton, and WCM 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.

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

At their in-person meeting on December 7-8, 2012, the Trustees considered the renewal of the Management Agreement and those of the Subadvisory Agreements for Artisan Partners Limited Partnership, Fiduciary Counselling, Inc. (“FCI”), Heartland Advisors, Inc., Keeley Asset Management Corp., Kennedy Capital Management, Inc., Knightsbridge Asset Management, LLC, Osterweis Capital Management, LLC, Parametric and Sit Fixed Income Advisors II, LLC (“Existing Subadvisers”) which had not been previously considered at their in-person meeting on October 16, 2012 (the “Existing Subadvisory Agreements”). Prior to the meeting, the Trustees requested, received, and reviewed written responses from CMC and the Existing 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 Existing 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 Existing Subadvisory Agreements, and the Trustees’ responsibilities related to their review. In addition to the information presented on December 7-8, 2012, 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

A-19

independent trustees present, approved the renewal of the Management Agreement and the Existing 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 Existing Subadvisers, as well as their investment expertise, resources and capabilities. The Trustees considered the quality of the Existing 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 Existing Subadvisers as related to their ongoing ability to provide services as specified under the Management Agreement and Existing Subadvisory Agreements. The 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 Existing 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 Existing 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 2012. The Trustees concluded that they were satisfied with CMC and the Existing Subadvisers’ investment performance to date.

Comparative Fees and Cost of Services Provided
The Trustees reviewed the fees paid to CMC and the Existing 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 Existing 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 Core Equity Fund, International Fund, Small Companies Fund and Tax-Exempt Fund during 2012.

The Board considered that between June 1, 2011 and March 14, 2012, CMC voluntarily waived the management fee for the Core Equity Fund to 0.60%. Effective on March 15, 2012, CMC voluntarily waived the management fee for the Core Equity Fund to 0.52%. Between December 5, 2011 and March 14, 2012, CMC voluntarily waived the management fee for the International Fund to 0.70%. Effective March 15, 2012, CMC voluntarily waived the management fee for the International Fund to 0.60%. The Trustees also noted the commitment of CMC initially to subsidize the operating costs of the International Fund following the addition of new subadvisers until it could reconsider its voluntary fee waiver in March 2013.

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Management Profitability
The Trustees reviewed CMC’s level of profitability with respect to the Funds, particularly noting CMC’s payment of fees and expenses typically absorbed by mutual fund shareholders. The Trustees concluded that profitability levels for CMC were reasonable. The Trustees considered that the Existing 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 Core Equity, Tax-Exempt and Small Companies 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.

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.

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Federal Tax Information
(unaudited)

Qualified Dividend Income. Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), 100% of ordinary dividends paid during the fiscal year ended December 31, 2012 for the Core Equity Fund, 84.28% of ordinary dividends paid during the fiscal year ended December 31, 2012 for the Small Companies Fund, and 100% of ordinary dividends paid during the fiscal year ended December 31, 2012 for the International Fund are designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2012.

Corporate Dividends-Received Deduction. 100%, 84.28% and 0.20% of the dividends distributed during the fiscal year ended December 31, 2012, for the Core Equity, Small Companies and International Funds, respectively, qualify for the dividends-received deduction for corporate shareholders.

Foreign Tax Credit. The Fund below intends to make an election that will allow shareholders to treat their proportionate share of foreign taxes paid by the Fund as having been paid by them. The amounts which represent income from sources within, and taxes paid to, foreign countries are as follows:

Fund	Taxes		Foreign Source Income
International	$	730,180	$	9,410,099

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	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 Core Equity Fund (formerly Clearwater Growth Fund), Clearwater Small Companies Fund (formerly Clearwater Small Cap Fund), Clearwater Tax-Exempt Bond Fund, Clearwater International Fund (funds within Clearwater Investment Trust) (the Funds) as of December 31, 2012, 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 audit 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, 2012 by correspondence with the custodian, transfer agent (of underlying funds) and brokers, or by other appropriate auditing procedures. 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 Core Equity Fund, Clearwater Small Companies Fund, Clearwater Tax-Exempt Bond Fund, and Clearwater International Fund as of December 31, 2012, and 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 28, 2013

KPMG LLP is a Delaware limited liability partnership,

the U.S. member firm of KPMG International Cooperative

(“KPMG International”), a Swiss entity.

1

CLEARWATER INVESTMENT TRUST

Statements of Assets and Liabilities

December 31, 2012

	Core Equity Fund(a)			Small Companies Fund(b)		Tax-Exempt Bond Fund		International Fund
Assets
Investments in securities, at fair value (identified cost: $272,361,471 Core Equity Fund; $247,627,216 Small Companies Fund; $499,059,091 Tax-Exempt Bond Fund; $345,686,394 International Fund)	$	413,424,260			292,266,662		525,833,879		421,023,102
Foreign currencies, at value (cost: $62,300)		-			-		-		62,381
Receivable for securities sold		44,191			552,467		482,800		55,945
Receivable for shares of beneficial interest sold		73,100			25,000		60,000		321,200
Accrued dividend and interest receivable		384,983			279,378		5,817,945		417,191
Foreign tax reclaim receivable		9,898			-		-		613,622
Unrealized appreciation on forward foreign currency exchange contracts		-			-		-		403,237
Total assets		413,936,432			293,123,507		532,194,624		422,896,678
Liabilities
Payables for investment securities purchased		14,982,535			388,724		3,179,696		822,262
Payables for fund shares redeemed		3,215,766			10,109,846		1,358,595		13,368,638
Accrued investment advisory fee		495,440			689,335		479,066		582,115
Payable for dividend distribution		-			-		59,701		-
Unrealized depreciation on forward foreign currency exchange contracts		-			-		-		64,746
Unrealized depreciation on foreign currency transactions		205			-		-		-
Total liabilities		18,693,946			11,187,905		5,077,058		14,837,761
Net assets	$	395,242,486			281,935,602		527,117,566		408,058,917
Capital
Capital stock and additional paid-in capital (authorized unlimited number of shares at no par value for each Fund: outstanding 13,719,065, 15,076,232, 51,917,979 and 30,612,099 shares, respectively)	$	267,908,005			233,411,344		500,275,470		338,039,017
Undistributed (overdistributed) net investment income		107,752			-		13,753		(891,294	)
Accumulated net realized gain (loss) from investments and foreign currency transactions		(13,835,653	)		3,884,812		53,555		(4,784,289	)
Unrealized appreciation of investments and translation of assets and liabilities in foreign currencies		141,062,382			44,639,446		26,774,788		75,695,483
Net assets	$	395,242,486			281,935,602		527,117,566		408,058,917
Net asset value per share of outstanding capital stock	$	28.81			18.70		10.15		13.33

(a) Name change effective April 30, 2012. Formerly known as the Clearwater Growth Fund.
(b) Name change effective April 30, 2012. Formerly known as the Clearwater Small Cap Fund.

See accompanying notes to financial statements.

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CLEARWATER INVESTMENT TRUST

Statements of Operations

Year ended December 31, 2012

	Core Equity Fund(a)			Small Companies Fund(b)			Tax-Exempt Bond Fund			International Fund
Investment income:
Income:
Dividends (net of foreign taxes withheld of $29,558, $2,520, $0 and $1,146,749 respectively)	$	7,408,352			4,005,887			2,451,608			10,563,530
Interest		-			-			24,588,777			1,012
Total income		7,408,352			4,005,887			27,040,385			10,564,542
Expenses:
Investment advisory fee		3,281,628			3,572,557			3,153,340			3,508,916
Voluntary fee reduction		(1,328,407	)		(926,216	)		(1,261,343	)		(1,336,300	)
Total net expenses		1,953,221			2,646,341			1,891,997			2,172,616
Net investment income		5,455,131			1,359,546			25,148,388			8,391,926
Net realized gain (loss) on investments and foreign currency transactions:
Security transactions		3,806,086			26,053,070			8,364,152			22,374,446
Forward foreign currency exchange contracts		-			-			-			101,063
Foreign currency transactions		(6,279	)		32,886			-			(94,585	)
Net increase (decrease) in appreciation/depreciation on:
Security transactions		42,473,723			17,884,680			19,828,443			27,232,668
Forward foreign currency exchange contracts		-			-			-			336,676
Foreign currency transactions		(205	)		-			-			-
Translation of other assets and liabilities denominated in foreign currencies		(203	)		-			-			7,196
Net gain on investments		46,273,122			43,970,636			28,192,595			49,957,464
Net increase in net assets resulting from operations	$	51,728,253			45,330,182			53,340,983			58,349,390

(a) Name change effective April 30, 2012. Formerly known as the Clearwater Growth Fund.
(b) Name change effective April 30, 2012. Formerly known as the Clearwater Small Cap Fund.

See accompanying notes to financial statements.

3

CLEARWATER INVESTMENT TRUST

Statements of Changes in Net Assets

Years ended December 31, 2012 and 2011

	Core Equity Fund(a)						Small Companies Fund(b)
	12/31/2012			12/31/2011			12/31/2012			12/31/2011
Operations:
Net investment income	$	5,455,131			4,260,571			1,359,546			119,142
Net realized gain (loss) on investments		3,799,807			(6,601,423	)		26,085,956			30,103,847
Net increase (decrease) in unrealized appreciation/depreciation		42,473,315			(8,156,343	)		17,884,680			(32,921,523	)
Net increase (decrease) in net assets resulting from operations		51,728,253			(10,497,195	)		45,330,182			(2,698,534	)
Distributions to shareholders from:
Net investment income		(5,308,828	)		(4,182,151	)		(1,372,954	)		(93,237	)
Net realized gain on investments		-			-			(18,710,016	)		(20,564,115	)
Total distributions to shareholders		(5,308,828	)		(4,182,151	)		(20,082,970	)		(20,657,352	)
Capital share transactions:
Proceeds from shares sold		30,761,200			12,580,223			17,578,121			15,200,741
Reinvestment of distributions from net investment income and gain		5,308,828			4,182,151			20,082,970			20,657,352
Payments for shares redeemed		(19,567,325	)		(14,032,377	)		(20,480,532	)		(29,231,102	)
Net increase in net assets from capital share transactions		16,502,703			2,729,997			17,180,559			6,626,991
Total increase (decrease) in net assets		62,922,128			(11,949,349	)		42,427,771			(16,728,895	)
Net assets:
At the beginning of the year		332,320,358			344,269,707			239,507,831			256,236,726
At the end of the year	$	395,242,486			332,320,358			281,935,602			239,507,831
Undistributed net investment income	$	107,752			28,372			-			-

	Tax-Exempt Bond Fund						International Fund
	12/31/2012			12/31/2011			12/31/2012			12/31/2011
Operations:
Net investment income	$	25,148,388			26,389,170			8,391,926			7,293,916
Net realized gain (loss) on investments		8,364,152			(887,827	)		22,380,924			(4,572,714	)
Net increase (decrease) in unrealized appreciation/depreciation		19,828,443			32,296,176			27,576,540			(46,568,190	)
Net increase (decrease) in net assets resulting from operations		53,340,983			57,797,519			58,349,390			(43,846,988	)
Distributions to shareholders from:
Net investment income		(25,130,641	)		(26,365,905	)		(8,901,744	)		(7,103,317	)
Net realized gain on investments		-			-			(22,141,275	)		(717,130	)
Total distributions to shareholders		(25,130,641	)		(26,365,905	)		(31,043,019	)		(7,820,447	)
Capital share transactions:
Proceeds from shares sold		27,526,350			14,973,923			70,026,648			21,869,448
Reinvestment of distributions from net investment income and gain		25,302,734			26,372,119			31,043,019			7,820,447
Payments for shares redeemed		(72,755,733	)		(70,145,905	)		(25,388,480	)		(19,365,745	)
Net increase (decrease) in net assets from capital share transactions		(19,926,649	)		(28,799,863	)		75,681,187			10,324,150
Total increase (decrease) in net assets		8,283,693			2,631,751			102,987,558			(41,343,285	)
Net assets:
At the beginning of the year		518,833,873			516,202,122			305,071,359			346,414,644
At the end of the year	$	527,117,566			518,833,873			408,058,917			305,071,359
Undistributed (overdistributed) net investment income	$	13,753			(13,410	)		(891,294	)		(806,303	)

(a) Name change effective April 30, 2012. Formerly known as the Clearwater Growth Fund.
(b) Name change effective April 30, 2012. Formerly known as the Clearwater Small Cap Fund.

See accompanying notes to financial statements.

4

CLEARWATER INVESTMENT TRUST

Financial Highlights

December 31, 2012

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

	Year ended December 31,
Core Equity Fund(a)	2012			2011			2010			2009			2008
Net asset value, beginning of year	$	25.26			26.38			23.40			18.60			30.57
Income from investment operations:
Net investment income		0.40			0.33			0.38			0.39			0.51
Net realized and unrealized gains (losses)		3.54			(1.13	)		2.99			4.78			(11.96	)
Total from investment operations		3.94			(0.80	)		3.37			5.17			(11.45	)
Less distributions:
Dividends from net investment income		(0.39	)		(0.32	)		(0.39	)		(0.37	)		(0.52	)
Total distributions		(0.39	)		(0.32	)		(0.39	)		(0.37	)		(0.52	)
Net asset value, end of year	$	28.81			25.26			26.38			23.40			18.60
Total return (b)		15.64	%		(3.04	)%		14.42	%		27.90	%		(37.50	)%
Net assets, end of year (000s omitted)	$	395,242			332,320			344,270			293,188			197,263
Ratio of expenses, net of waivers, to average net assets (c)(d)(e)(f)		0.54	%		0.53	%		0.30	%		0.28	%		0.28	%
Ratio of expenses, before waivers, to average net assets (c)(d)(e)(f)		0.90	%		0.69	%		0.45	%		0.45	%		0.45	%
Ratio of net investment income, net of waivers, to average net assets (d)(e)(f)		1.49	%		1.25	%		1.60	%		1.98	%		1.92	%
Ratio of net investment income, before waivers, to average net assets (d)(e)(f)		1.13	%		1.09	%		1.45	%		1.81	%		1.75	%
Portfolio turnover rate (excluding short-term securities)		22.31	%		27.01	%		43.65	%		21.83	%		14.71	%

(a)	Name change effective April 30, 2012. Formerly known as the Clearwater Growth Fund.
(b)	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.
(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 March 15, 2012, the investment advisory fee, net of voluntary waivers, decreased to 0.52%. Also effective March 15, 2012, the Adviser increased the voluntary waiver to 0.38%.
(e)	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%.
(f)	Effective December 1, 2010, the Adviser discontinued the voluntary waiver previously in effect.

See accompanying notes to financial statements.

5

CLEARWATER INVESTMENT TRUST

Financial Highlights

December 31, 2012

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

	Year ended December 31,
Small Companies Fund(a)	2012			2011			2010			2009			2008
Net asset value, beginning of year	$	16.91			18.70			14.41			10.39			16.68
Income from investment operations:
Net investment income		0.09			0.01			-			-			0.05
Net realized and unrealized gains (losses)		3.10			(0.28	)		4.31			4.02			(6.29	)
Total from investment operations		3.19			(0.27	)		4.31			4.02			(6.24	)
Less distributions:
Distributions from net investment income		(0.10	)		(0.01	)		(0.02	)		-			(0.05	)
Distributions from net realized gains		(1.30	)		(1.51	)		-			-			-
Total distributions		(1.40	)		(1.52	)		(0.02	)		-			(0.05	)
Net asset value, end of year	$	18.70			16.91			18.70			14.41			10.39
Total return (b)		19.02	%		(1.62	)%		29.99	%		38.70	%		(37.40	)%
Net assets, end of year (000s omitted)	$	281,936			239,508			256,237			214,335			120,846
Ratio of expenses, net of waivers, to average net assets (c)(d)		1.00	%		0.98	%		0.95	%		0.95	%		0.95	%
Ratio of expenses, before waivers, to average net assets (c)(d)		1.35	%		1.35	%		1.35	%		1.35	%		1.35	%
Ratio of net investment income (loss), net of waivers, to average net assets(d)		0.51	%		0.05	%		(0.02	)%		(0.04	)%		0.32	%
Ratio of net investment income (loss), before waivers, to average net assets(d)		0.16	%		(0.32	)%		(0.42	)%		(0.44	)%		(0.08	)%
Portfolio turnover rate (excluding short-term securities)		59.48	%		64.54	%		71.05	%		95.13	%		117.12	%

(a)	Name change effective April 30, 2012. Formerly known as the Clearwater Small Cap Fund.
(b)	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.
(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 1.00%. Also effective June 1, 2011, the Adviser reduced the voluntary waiver to 0.35%.

See accompanying notes to financial statements.

6 (Continued)

CLEARWATER INVESTMENT TRUST

Financial Highlights

December 31, 2012

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

	Year ended December 31,
Tax-Exempt Bond Fund	2012			2011			2010			2009			2008
Net asset value, beginning of year	$	9.62			9.06			9.25			8.09			9.64
Income from investment operations:
Net investment income		0.48			0.48			0.47			0.47			0.46
Net realized and unrealized gains (losses)		0.53			0.56			(0.19	)		1.16			(1.55	)
Total from investment operations		1.01			1.04			0.28			1.63			(1.09	)
Less distributions:
Distributions from net investment income		(0.48	)		(0.48	)		(0.47	)		(0.47	)		(0.46	)
Total distributions		(0.48	)		(0.48	)		(0.47	)		(0.47	)		(0.46	)
Net asset value, end of year	$	10.15			9.62			9.06			9.25			8.09
Total return (a)		10.66	%		11.81	%		2.99	%		20.60	%		(11.80	)%
Net assets, end of year (000s omitted)	$	527,118			518,834			516,202			542,394			370,848
Ratio of expenses, net of waivers, to average net assets (b)		0.36	%		0.36	%		0.36	%		0.36	%		0.37	%
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		4.79	%		5.08	%		5.00	%		5.34	%		5.03	%
Ratio of net investment income, before waivers, to average net assets		4.55	%		4.84	%		4.76	%		5.10	%		4.80	%
Portfolio turnover rate (excluding short-term securities)		28.06	%		24.83	%		28.95	%		22.90	%		32.20	%

(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.

See accompanying notes to financial statements.

7 (Continued)

CLEARWATER INVESTMENT TRUST

Financial Highlights

December 31, 2012

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

										Period ended December 31, 2009(a)(b)
	Year ended December 31,
International Fund	2012			2011			2010
Net asset value, beginning of period	$	12.23			14.33			13.16			10.00
Income from investment operations:
Net investment income		0.30			0.30			0.23			0.19
Net realized and unrealized gains (losses)		1.88			(2.08	)		1.27			3.35
Total from investment operations		2.18			(1.78	)		1.50			3.54
Less distributions:
Distributions from net investment income		(0.31	)		(0.29	)		(0.23	)		(0.18	)
Distributions from net realized gains		(0.77	)		(0.03	)		(0.10	)		(0.20	)
Total distributions		(1.08	)		(0.32	)		(0.33	)		(0.38	)
Net asset value, end of period	$	13.33			12.23			14.33			13.16
Total return (c)		17.91	%		(12.44	)%		11.39	%		35.50	%
Net assets, end of period (000s omitted)	$	408,059			305,071			346,415			292,902
Ratio of expenses, net of waivers, to average net assets (d)(e)(f)(g)		0.62	%		0.77	%		0.80	%		0.92	%
Ratio of expenses, before waivers, to average net assets (d)(e)(f)(g)		1.00	%		1.00	%		1.00	%		1.00	%
Ratio of net investment income, net of waivers, to average net assets (d)(f)(g)		2.39	%		2.15	%		1.77	%		1.74	%
Ratio of net investment income, before waivers, to average net assets (d)(f)(g)		2.01	%		1.92	%		1.57	%		1.66	%
Portfolio turnover rate (excluding short-term securities)		72.32	%		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 March 15, 2012, the investment advisory fee, net of voluntary waivers, decreased to 0.60%. Also effective March 15, 2012, the Adviser increased the voluntary waiver to 0.40%.
(g)	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%.

See accompanying notes to financial statements.

8 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

(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: Clearwater Core Equity Fund, Clearwater Small Companies Fund, Clearwater Tax-Exempt Bond Fund, and Clearwater International Fund (the “Funds”). Clearwater Management Company (the “Adviser”) serves as the investment adviser for each of the Funds and is responsible for the oversight of each of the Fund’s subadvisers. The Trust’s declaration of trust permits the Board of Trustees to create additional funds in the future. The investment objective of the Clearwater Core Equity, Small Companies, 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.

Effective April 30, 2012, the Clearwater Growth Fund and the Clearwater Small Cap Fund changed their names to the Clearwater Core Equity Fund and the Clearwater Small Companies Fund, respectively.

Fiduciary Counselling, Inc. (“FCI”) acts as subadviser to each of the Funds. 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.

On January 1, 2012, The Northern Trust Company (“Northern Trust”) replaced FCI as acting transfer agent for each of the Funds. Northern Trust also serves as custodian, administrator and accounting services agent for each of the Funds. The related fees for these services are paid out of the investment advisory fees the Adviser receives from the respective Funds.

Under normal market conditions, the Clearwater Core Equity Fund pursues its investment objective by investing at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in equity securities of U.S. companies. The Fund employs a multi-style (growth and value) and multi-manager approach whereby portions of the Fund are allocated to different subadvisers who employ distinct investment styles. The Fund’s Adviser allocates portions of the Fund’s net assets among subadvisers. The Fund currently allocates net assets among the following subadvisers who provide day-to-day management to 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. To the extent feasible, Parametric manages its portion of the Fund’s net assets in a passive management strategy so that its portion of the Fund’s holdings generally matches the holdings of the Russell 1000^® Index as closely as possible without requiring the Fund to realize gains. In addition, as noted above, FCI also acts as a subadviser to the Fund.

Under normal market conditions, the Clearwater Small Companies Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in equity securities of small companies. The Fund defines “small companies” as issuers with market capitalizations no greater than $5 billion at the time of purchase. The equity securities the Fund invests in consist primarily of exchange traded common and preferred

9

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

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 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.

Under normal market conditions, the Clearwater Tax-Exempt Bond Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, 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 net assets in 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.

On October 16, 2012, the Board of Trustees approved the termination of investment advisory agreements with each of AXA Rosenberg Investment Management LLC (“AXA Rosenberg”) and Eagle Global Advisors, LLC (“Eagle”), two of the subadvisers to the Clearwater International Fund. At the same time, the Board of Trustees also approved investment advisory agreements with three new subadvisers to the Clearwater International Fund: Denver Investments (“Denver”), WCM Investment Management (“WCM”) and Templeton Investment Counsel, LLC (“Templeton”).

Under normal market conditions, the Clearwater International Fund intends to invest at least 80% of the value of its net assets, plus the amount of any borrowings for investment purposes, 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 Depositary Receipts, European Depositary Receipts, and Global Depositary Receipts as well as 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 currently does not intend to 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, whereby portions of the Fund’s assets are allocated to different subadvisers who employ distinct investment styles. The Fund currently allocates assets among the following subadvisers who provide day-to-day management to the Fund: Parametric, Artisan Partners Limited Partnership (“Artisan Partners”), Denver, WCM and Templeton. The allocation among subadvisers will vary over time, but the current intent of the Fund’s Adviser is that under normal market conditions approximately 50% 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 four other subadvisers. To the extent feasible, Parametric manages its portion of the Fund’s net assets in a passive management strategy so that its portion of the Fund’s holdings generally matches the holdings of the MSCI World Ex USA Index (net) on a net basis as closely as possible. In addition, as noted above, FCI also acts as a subadviser to the Fund.

10 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

(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. This may occur particularly with respect to certain foreign securities held by the International Fund, whereby the Board of Trustees may use adjustment factors obtained from an independent evaluation service that are intended to reflect more accurately the fair value of these foreign securities as of the time the Fund’s net asset value is calculated. 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 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 within net realized gain (loss) on security transactions and within net increase (decrease) in appreciation/depreciation on security transactions. The realized gains or losses, if any, on translation of other assets and liabilities denominated in foreign currencies are included on the Statements of Operations within net realized gain (loss) on foreign currency transactions. The

11 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

	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 adverse movements in foreign currency exchange rates, 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 any 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 currency transactions.
	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 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, Derivative Instruments.
(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 Core Equity 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

12 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

	settles. Realized gains or losses, if any, are included in foreign currency transactions on the Statements of Operations within net realized gain (loss) on investments and foreign currency transactions. 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 its 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 Core Equity, Small Companies and International Funds currently invest in the U.S. Government Select Portfolio and the Tax-Exempt Bond Fund currently invests in the Tax-Exempt Portfolio. The U.S. Government Select Portfolio was formerly known as the Government Select Portfolio prior to its name change effective on April 1, 2012. Northern Institutional Funds is an investment company advised by Northern Trust Investments, Inc. (“NTI”), a subsidiary of Northern Trust.
	The U.S. 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 Core Equity and International Funds, respectively.
(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, 2012, 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 2009, 2010, 2011 and 2012 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,

13 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

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, 2012 and 2011 was as follows:

	Tax-Exempt				Ordinary Income
	2012		2011		2012		2011
Core Equity Fund	$	-	$	-	$	5,308,828	$	4,182,151
Small Companies Fund		-		-		1,592,303		44,627
Tax-Exempt Bond Fund		24,948,863		26,002,514		356,024		369,605
International Fund		-		-		8,901,744		7,184,471

	Long-Term Capital Gains
	2012		2011
Core Equity Fund	$	-	$	-
Small Companies Fund		18,490,667		20,612,725
Tax-Exempt Bond Fund		-		-
International Fund		22,141,275		635,976

As of December 31, 2012, the components of distributable earnings on a tax basis were as follows:

	Core Equity Fund			Small Companies Fund			Tax-Exempt Bond Fund		International Fund
Undistributed ordinary income	$	42,849		$	-		$	-	$	255,479
Undistributed capital gain		-			4,143,651			53,555		75,798
Accumulated capital losses		(13,520,220	)		(250,809	)		-		(4,253,585	)
Unrealized appreciation		140,811,852			44,631,416			26,774,788		73,942,208
Total	$	127,334,481		$	48,524,258		$	26,828,343	$	70,019,900

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

	Core Equity Fund			Small Companies Fund			Tax-Exempt Bond Fund			International Fund
Undistributed net investment income (loss)	$	(66,923	)	$	13,408		$	9,416		$	424,827
Accumulated net realized gain (loss)		66,923			(13,408	)		(9,416	)		(424,827	)
Additional paid-in capital		-			-			-			-

14 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

(i)	Distributions to Shareholders
	Distributions to shareholders from net investment income, if any, are declared annually for the Core Equity, Small Companies, 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
	In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). These disclosure requirements are intended to help investors and other financial statement users to better assess the effect or potential effect of offsetting arrangements on a company’s financial position. They also improve transparency in the reporting of how companies mitigate credit risk, including disclosure of related collateral pledged or received. In addition, ASU 2011-11 facilitates comparison between those reporting entities that prepare their financial statements on the basis of U.S. GAAP and those reporting entities that prepare their financial statements on the basis of the International Financial Reporting Standards (“IFRS”). Specifically, ASU 2011-11 requires reporting entities to disclose 1) both gross and net information about both instruments and transactions eligible for offset in the financial statements and 2) instruments and transactions subject to an agreement similar to a master netting agreement. The effective date of ASU 2011-11 is for interim and annual reporting periods beginning on or after January 1, 2013. At this time, management is evaluating the implications of this requirement and the impact it will have on 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

15 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

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.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following is a summary of the inputs used in valuing each Fund’s investments and other financial instruments, if any, which are carried at fair value, as of December 31, 2012.

	Core Equity Fund (a)
	Level 1		Level 2		Level 3		Total
Common Stocks	$	387,058,780	$	-	$	-	$	387,058,780
Rights		1,193		-		-		1,193
Short-Term Investments		26,364,287		-		-		26,364,287
Total	$	413,424,260	$	-	$	-	$	413,424,260

(a) For the Core Equity 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 generally are valued at the last sales price or the regular trading session closing price on the principal exchange or market where they are traded.

The Core Equity Fund records all transfers between levels based on valuations at the end of each reporting period. At December 31, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on December 31, 2011. 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, 2012

Other Financial Instruments	Level 1		Level 2			Level 3		Total
Liabilities
Foreign currency transactions	$	-	$	(205	)	$	-	$	(205	)
Total Other Financial Instruments	$	-	$	(205	)	$	-	$	(205	)

The foreign currency transactions outstanding at December 31, 2012 are considered Level 2 investments due to the transactions being marked-to-market daily at the applicable exchange rates that have been adjusted from the initial quoted rate. Foreign currency transactions are shown on a gross basis in the above table and on the Statements of Assets and Liabilities.

	Small Companies Fund (b)
	Level 1		Level 2 *		Level 3		Total
Common Stocks
Consumer Discretionary	$	42,312,327	$	-	$	-	$	42,312,327
Consumer Staples		11,896,867		-		-		11,896,867
Energy		14,532,516		-		-		14,532,516
Financials		63,708,448		-		-		63,708,448
Health Care		24,983,285		-		-		24,983,285
Industrials		52,100,635		56,925		-		52,157,560
Information Technology		36,144,249		-		-		36,144,249
Materials		15,628,278		-		-		15,628,278
Utilities		8,532,140		-		-		8,532,140
Short-Term Investments		22,370,992		-		-		22,370,992
Total	$	292,209,737	$	56,925	$	-	$	292,266,662

	(b)	For the Small Companies 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 generally are valued at the last sales price or the regular trading session closing price on the principal exchange or market where they are traded.
*	The Small Companies Fund records all transfers between levels based on valuations at the end of each reporting period. At December 31, 2012, there were no transfers between Level 1 or Level 3 classifications based on levels assigned to the securities on December 31, 2011. At December 31, 2012, an equity investment with a fair value of $56,925, within the sector of Industrials, was transferred from Level 1 to Level 2 due to the security being valued based on a bid price, rather than a last sales or regular trading session closing price, from a primary pricing service provider on December 31, 2012. 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.

17 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

	Tax-Exempt Bond Fund (c)
	Level 1		Level 2		Level 3		Total
Closed-End Funds	$	33,319,234	$	-	$	-	$	33,319,234
Municipal Bonds
Airport		-		618,005		-		618,005
Bond Bank		-		2,657,415		-		2,657,415
Development		-		16,104,378		180,130		16,284,508
Education		-		51,322,578		-		51,322,578
Facilities		-		5,655,431		-		5,655,431
General		-		49,648,414		11,765		49,660,179
General Obligation		-		17,505,677		-		17,505,677
Higher Education		-		14,667,619		909,527		15,577,146
Housing		-		24,946,898		-		24,946,898
Medical		-		70,289,123		1,252,138		71,541,261
Mello-Roos		-		848,456		-		848,456
Multifamily Housing		-		39,414,359		-		39,414,359
Nursing Home		-		50,296,271		-		50,296,271
Pollution		-		2,121,774		-		2,121,774
Power		-		3,244,798		619,400		3,864,198
School District		-		25,513,366		-		25,513,366
Single Family Housing		-		57,410,585		-		57,410,585
Student Loan		-		6,070,969		-		6,070,969
Tobacco Settlement		-		3,769,113		-		3,769,113
Transportation		-		17,230,444		-		17,230,444
Utilities		-		1,953,353		-		1,953,353
Water		-		10,130,871		-		10,130,871
Short-Term Investments		18,121,788		-		-		18,121,788
Total	$	51,441,022	$	471,419,897	$	2,972,960	$	525,833,879

(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 Tax-Exempt Bond 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 the security after the close of the market on which the security principally trades and before the time the Tax-Exempt Bond Fund’s net asset value is calculated.

18 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

As of December 31, 2012, the Valuation Committee determined the fair valuation of municipal bonds based on inputs such as the last traded price at the time of significant events or the default of a municipal bond. The Valuation Committee also looked at observations of similar securities which are not currently openly traded in the active market. Finally, the Valuation Committee considered other events in determining fair valuation including the nature of the security and whether it is traded openly in the active market. Such investments have been classified as Level 3 instruments.

The Tax-Exempt Bond Fund records all transfers between levels based on valuations at the end of each reporting period. At December 31, 2012, there were no transfers between Level 1 or Level 2 classifications based on levels assigned to the securities on December 31, 2011. 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.

19 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

	International Fund (d)
	Level 1		Level 2 *		Level 3		Total
Common Stocks
Consumer Discretionary	$	6,806,097	$	53,798,672	$	-	$	60,604,769
Consumer Staples		7,217,037		39,996,978		-		47,214,015
Energy		8,270,061		16,415,591		-		24,685,652
Financials		18,203,473		62,851,566		-		81,055,039
Health Care		5,919,254		24,736,716		-		30,655,970
Industrials		4,016,028		60,494,534		-		64,510,562
Information Technology		10,320,301		20,922,201		-		31,242,502
Materials		6,486,309		23,416,634		-		29,902,943
Telecommunication Services		944,978		8,317,874		-		9,262,852
Utilities		522,802		6,794,700		-		7,317,502
Preferred Stock
Consumer Discretionary		-		878,668		-		878,668
Consumer Staples		-		49,602		-		49,602
Utilities		-		104,474		-		104,474
Rights
Consumer Staples		-		-		-		-
Energy		-		13,692		-		13,692
Short-Term Investments		33,524,860		-		-		33,524,860
Total	$	102,231,200	$	318,791,902	$	-	$	421,023,102

	(d)	For the International Fund, 100% of the investment value is comprised of equity securities, rights and short-term investments. See the Fund’s Schedule of Investments for geographical classification. Investments in equity and short-term securities generally are valued at the last sales price or the regular trading session closing price on the principal exchange or market where they are traded, which are generally considered Level 1 securities. Level 2 securities are those which have received a fair value trigger as of December 31, 2012.
*	The International Fund records all transfers between levels based on valuations at the end of each reporting period. At December 31, 2012, there were no transfers between Level 1 or Level 3 classifications based on levels assigned to securities on December 31, 2011. At December 31, 2012, certain foreign equity securities with a fair value of $226,488,190 were transferred from Level 1 to Level 2 classifications from December 31, 2011 to December 31, 2012, due to receiving a fair valuation. The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a portion of the Fund’s investments are categorized as Level 2 investments. 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 no orderly.

20 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

Other Financial Instruments	Level 1		Level 2			Level 3		Total
Assets
Forward foreign currency exchange contracts	$	-	$	403,237		$	-	$	403,237
Liabilities
Forward foreign currency exchange contracts		-		(64,746	)		-		(64,746	)
Total Other Financial Instruments	$	-	$	338,491		$	-	$	338,491

The forward foreign currency exchange contracts outstanding at December 31, 2012 are considered Level 2 investments due to the contracts 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.

21 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

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

Tax-Exempt Bond Fund	Municipal Bonds
	Development			General			Higher Education			Medical			Power		Utilities			Total
Balance as of 12/31/11	$	181,777		$	-		$	990,330		$	1,144,754		$	619,400	$	964,241		$	3,900,502
Realized Gains		473			-			-			1,772			-		-			2,245
Realized Losses		-			-			(2,966	)		(463	)		-		-			(3,429	)
Change in Unrealized Appreciation		41,571			-			11,348			148,204			-		242,267			443,390
Change in Unrealized Depreciation		-			-			-			-			-		-			-
Purchases		-			-			-			-			-		-			-
Sales		(43,692	)		-			(89,185	)		(42,129	)		-		(1,206,508	)		(1,381,514	)
Transfers into Level 3 (1)		1	(2)		11,765	(2)		-			-			-		-			11,766
Transfers out of Level 3 (1)		-			-			-			-			-		-			-
Balance as of 12/31/12	$	180,130		$	11,765		$	909,527		$	1,252,138		$	619,400	$	-		$	2,972,960
Change in net unrealized
appreciation (depreciation) (3)	$	41,571		$	(169,357	)	$	11,348		$	148,204		$	-	$	-		$	31,766

(1)	The value of the Transfers into and out of Level 3 is measured using the fair value as of the period ended December 31, 2012.
(2)	Transferred from Level 2 to Level 3 due to securities being valued based on evaluated price at the time of default on November 1, 2012. This fair valuation was determined using procedures adopted by the Board of Trustees.
(3)	The amount of change in net unrealized appreciation (depreciation) on Level 3 securities still held at December 31, 2012 is included in the Statements of Operations.

22 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

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

International Fund	Common Stock
	Materials
Balance as of 12/31/11	$	13,218
Realized Gains		-
Realized Losses		-
Change in Unrealized Appreciation		-
Change in Unrealized Depreciation		(13,218	)
Purchases		-
Sales		-
Transfers into Level 3		-
Transfers out of Level 3		-
Balance as of 12/31/12	$	-

The amount of change in net unrealized depreciation on the Level 3 security still held at December 31, 2012 and included in the Statements of Operations, within the sector of Materials, was $13,218.

(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, 2012, were as follows:

	Purchases		Sales
Core Equity Fund	$	99,126,669	$	78,577,328
Small Companies Fund		152,753,348		163,879,893
Tax-Exempt Bond Fund		142,463,916		163,339,539
International Fund		285,183,494		245,971,018

(5) Capital Share Transactions

Transactions in capital shares for each fund for the fiscal years ended December 31, 2012 and 2011, were as follows:

	Core Equity Fund						Small Companies Fund
	2012			2011			2012			2011
Sold		1,085,012			475,905			924,853			834,746
Issued for reinvestment of distributions		187,326			164,587			1,095,634			1,204,510
Redeemed		(709,321	)		(536,437	)		(1,106,562	)		(1,577,251	)
Increase		563,017			104,055			913,925			462,005

23 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

	Tax-Exempt Bond Fund						International Fund
	2012			2011			2012			2011
Sold		2,720,895			1,644,366			5,265,669			1,625,059
Issued for reinvestment of distributions		2,524,334			2,847,845			2,342,869			641,546
Redeemed		(7,257,727	)		(7,552,170	)		(1,941,501	)		(1,491,664	)
Increase (decrease)		(2,012,498	)		(3,059,959	)		5,667,037			774,941

(6) Capital Loss Carryforward

For the period subsequent to October 31, 2012 through the fiscal year ended December 31, 2012, 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
Core Equity Fund	$	57,250
Small Companies Fund		250,809
International Fund		4,253,583

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. As of December 31, 2012, pre-enactment capital loss carryforwards for U.S. Federal income tax purposes for the Core Equity Fund are $10,839,789, which will expire as follows:

	Core Equity Fund
Year of expiration:
2016	$	2,269,706
2017		8,570,083
Total	$	10,839,789

24 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

The following Fund’s capital loss carryforwards do not expire.

	Core Equity Fund
Short-Term Capital Loss Carryforward	$	2,623,181

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

The following capital loss carryforwards were utilized at December 31, 2012, for U.S. Federal income tax purposes:

	Amount
Core Equity Fund	$	3,110,304
Tax-Exempt Bond Fund		8,301,181
International Fund		1,559,480

(7) Expenses and Related-Party Transactions

The Trust has a contract for investment advisory services with the Adviser. Under terms of separate agreements, Clearwater Core Equity Fund, Clearwater Small Companies 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%, respectively, of each Fund’s average daily 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 March 15, 2012, the voluntary waivers for the Core Equity Fund and the International Fund were increased to 0.38% and 0.40%, respectively. As of December 31, 2012, the management fees paid by the Core Equity, Small Companies, Tax-Exempt Bond and International Funds net of voluntary waivers are 0.54%, 1.00%, 0.36%, and 0.62%, respectively. As of December 31, 2012, the management fees in place, net of voluntary waivers, for the Core Equity, Small Companies, Tax-Exempt Bond, and International Funds are 0.52%, 1.00%, 0.36%, and 0.60%, 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 subadvisory contracts with independent investment advisory firms for each Fund to provide daily investment management services. Effective October 16, 2012, the Adviser has engaged and entered into subadvisory contracts with Denver, WCM and Templeton as three new subadvisers to provide daily investment management services and investment selection decisions for allocated portions of the International Fund. The subadvisory fees are based on each subadviser’s proportional net assets it currently manages within each Fund and are paid directly by the Adviser.

The subadvisory fee for the Clearwater Core Equity Fund, payable to Parametric, Heartland and Osterweis, is equal to an annual rate of 0.15% of the portion of net assets managed, an annual rate of 0.65% of the portion of net assets managed and an annual rate of 0.75% of the portion of net assets managed, respectively. The subadvisory fee payable to Knightsbridge is equal to a fee schedule based on an annual rate of 0.75% on the first

25 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

$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. The subadvisory fee for the Clearwater Small Companies Fund, payable to Kennedy, is equal to a fee schedule based on 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 subadvisory fee payable to Keeley is equal to a fee schedule based on 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 subadvisory fee for the Clearwater Tax-Exempt Bond Fund, payable to Sit, is equal to a fee schedule based on an annual rate of 0.40% on the first $20 million in net assets managed, decreasing to 0.30% on the next $30 million of the portion of net assets managed, decreasing to 0.25% on the next $25 million of the portion of net assets managed, and further decreasing to 0.20% of net assets managed in excess of $75 million.

The subadvisory 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 subadvisory fee payable to Artisan Partners is equal to a fee schedule based on 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 subadvisory fee payable to Denver is equal to a fee schedule based on an annual rate of 1.25% on the first $10 million of the portion of net assets managed, decreasing to 0.85% of the portion of net assets managed in excess of $10 million. The subadvisory fee payable to WCM is equal to an annual rate of 0.80% of the portion of net assets managed. The subadvisory fee payable to Templeton is equal to a fee schedule based on an annual rate of 0.95% on the first $25 million of the portion of net assets managed, decreasing to 0.85% on the next $25 million of the portion of net assets managed, decreasing to 0.75% on the next $50 million of the portion of net assets managed, decreasing to 0.65% on the next $150 million of the portion of net assets managed, decreasing to 0.55% on the next $250 million of the net assets managed and further decreasing to 0.50% of the portion of net assets managed in excess of $500 million.

In addition to the above, under the investment advisory agreements with AXA Rosenberg and Eagle, which the Board of Trustees of the Trust voted to terminate on October 16, 2012, the Adviser paid AXA Rosenberg and Eagle based on the proportional net assets that each subadviser managed for the Clearwater International Fund. The subadvisory fee payable to AXA Rosenberg was equal to a fee schedule based on 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 subadvisory fee payable to Eagle was equal to a fee schedule based on 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 subadviser 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 investment advisory 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

26 (Continued)

CLEARWATER INVESTMENT TRUST

Notes to Financial Statements

December 31, 2012

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 (c).

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, 2012:

	ASSETS			LIABILITIES
Derivative Type	Statements of Assets and Liabilities Location	Value		Statements of Assets and Liabilities Location	Value
Forward foreign currency exchange contracts	Unrealized appreciation on forward foreign currency exchange contracts	$	403,237	Unrealized depreciation on forward foreign currency exchange contracts	$	64,746

The following tables set forth by primary risk exposure the International Fund’s net realized gain (loss) and net increase (decrease) in appreciation/depreciation on forward foreign currency exchange contracts for the year ended December 31, 2012:

Derivative Type	Statements of Operations Location	Value		Derivative Type	Statements of Operations Location	Value
Forward foreign currency exchange contracts	Net realized gain on forward foreign currency exchange contracts	$	101,063	Forward foreign currency exchange contracts	Net increase in appreciation on forward foreign currency exchange contracts	$	336,676

Derivative transactions are measured in terms of the notional amount. The following table presents, for the International Fund, the number of transactions and weighted average notional amounts, which is indicative of the volume of derivative activity, for the year ended December 31, 2012.

Foreign Exchange Contracts
Number of Transactions		Weighted Average Notional Amount
	1,804	$	1,366,319

(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 Core Equity Fund^(A)
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
Common Stocks:
	Consumer Discretionary:
	2,300	ABERCROMBIE & FITCH CO., CLASS A	$	50,218		110,331
	1,500	ADVANCE AUTO PARTS, INC.		53,558		108,525
	6,150	AMAZON.COM, INC.(b)		274,722		1,544,511
	1,600	AMC NETWORKS, INC., CLASS A(b)		25,785		79,200
	3,300	AMERICAN EAGLE OUTFITTERS, INC.		33,099		67,683
	1,600	AUTOLIV, INC.(c)		44,874		107,824
	500	AUTOZONE, INC.(b)		32,038		177,215
	23,295	BED BATH & BEYOND, INC.(b)		1,200,112		1,302,424
	1,400	BIG LOTS, INC.(b)		15,477		39,844
	2,200	BORGWARNER, INC.(b)		51,799		157,564
	750	BRINKER INTERNATIONAL, INC.		10,084		23,243
	1,700	CABLEVISION SYSTEMS CORP. (NEW
		YORK GROUP), CLASS A		15,956		25,398
	4,168	CARMAX, INC.(b)		50,984		156,467
	5,100	CARNIVAL CORP.		173,794		187,527
	6,743	CBS CORP., CLASS B (NON VOTING)		77,837		256,571
	600	CHARTER COMMUNICATIONS, INC., CLASS A(b)		30,036		45,744
	600	CHICO’S FAS, INC.		5,619		11,076
	68,820	CINEMARK HOLDINGS, INC.		1,340,356		1,787,944
	18,500	CLEAR CHANNEL OUTDOOR HOLDINGS, INC., CLASS A		72,792		129,870
	5,000	COACH, INC.		19,161		277,550
	41,100	COMCAST CORP., CLASS A		748,537		1,536,318
	4,600	D.R. HORTON, INC.		22,057		90,988
	2,300	DARDEN RESTAURANTS, INC.		47,909		103,661
	2,400	DEVRY, INC.		44,808		56,952
	1,500	DICK’S SPORTING GOODS, INC.		24,802		68,235
	14,821	DIRECTV(b)		174,284		743,421
	3,200	DISCOVERY COMMUNICATIONS, INC., CLASS A(b)		193,638		203,136
	500	DOLLAR GENERAL CORP.(b)		25,005		22,045
	6,700	DOLLAR TREE, INC.(b)		61,517		271,752
	710	EXPEDIA, INC.		10,883		43,630
	500	FAMILY DOLLAR STORES, INC.		12,652		31,705
	3,000	FOOT LOCKER, INC.		40,394		96,360
	53,863	FORD MOTOR CO.		275,953		697,526
	4,600	GAMESTOP CORP., CLASS A		34,643		115,414
	5,700	GANNETT CO., INC.		51,200		102,657
	4,100	GAP (THE), INC.		58,946		127,264
	2,200	GARMIN LTD.(c)		40,557		89,804
	4,000	GENERAL MOTORS CO.(b)		85,048		115,320
	7,500	GENTEX CORP.		106,860		141,150
	3,450	GENUINE PARTS CO.		102,424		219,351
	1,900	GOODYEAR TIRE & RUBBER (THE) CO.(b)		26,258		26,239
	166,500	H&R BLOCK, INC.		2,380,408		3,091,905
	500	HANESBRANDS, INC.(b)		10,750		17,910
	6,750	HARLEY-DAVIDSON, INC.		39,547		329,670
	4,300	HARMAN INTERNATIONAL INDUSTRIES, INC.		74,798		191,952
	400	HASBRO, INC.		10,206		14,360
	29,825	HOME DEPOT (THE), INC.		19,452		1,844,676
	2,200	INTERNATIONAL GAME TECHNOLOGY		31,196		31,174
	15,600	INTERPUBLIC GROUP OF (THE) COS., INC.		40,950		171,912
	2,700	J.C. PENNEY CO., INC.		53,244		53,217
	1,400	JARDEN CORP.		25,277		72,380
	56,458	JOHNSON CONTROLS, INC.		1,545,253		1,733,261
	16,469	KOHL’S CORP.		479,722		707,838
	4,200	LAMAR ADVERTISING CO., CLASS A(b)		55,664		162,750
	5,738	LAS VEGAS SANDS CORP.		163,627		264,866
	3,000	LEAR CORP.		128,814		140,520
	2,900	LENNAR CORP., CLASS A		38,266		112,143
	5,800	LIBERTY GLOBAL, INC., CLASS A(b)		103,484		365,342
	88,880	LIBERTY INTERACTIVE CORP., CLASS A(b)		1,551,796		1,749,158
	5,032	LIBERTY MEDIA CORP. - LIBERTY CAPITAL, CLASS A(b)		30,073		583,762
	790	LIBERTY VENTURES, CLASS A(b)		23,580		53,530
	6,190	LIMITED BRANDS, INC.		70,745		291,301
	2,000	LKQ CORP.(b)		24,950		42,200
	17,400	LOWE’S COS., INC.		483,438		618,048
	5,000	MACY’S, INC.		81,374		195,100

(A)Name change effective April 30, 2012. Formerly known as the Clearwater Growth Fund.
See accompanying notes to the financial statements.	28	(Continued)

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Core Equity Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
Consumer Discretionary (Cont’d):
	66,130	MARKS & SPENCER GROUP PLC ADR(c)(d)	$	772,476		823,980
	4,969	MARRIOTT INTERNATIONAL, INC., CLASS A		60,013		185,195
	75,496	MARRIOTT VACATIONS WORLDWIDE CORP.(b)		1,321,371		3,145,918
	4,200	MATTEL, INC.		75,213		153,804
	17,302	MCDONALD’S CORP.		470,052		1,526,209
	3,600	MCGRAW-HILL (THE) COS., INC.		84,305		196,812
	6,600	MGM RESORTS INTERNATIONAL(b)		54,921		76,824
	600	MOHAWK INDUSTRIES, INC.(b)		26,796		54,282
	1,400	MORNINGSTAR, INC.		57,577		87,962
	800	NETFLIX, INC.(b)		47,728		74,224
	2,200	NEWELL RUBBERMAID, INC.		26,950		48,994
	28,700	NEWS CORP., CLASS A		308,077		732,998
	12,000	NIKE, INC., CLASS B		283,152		619,200
	4,300	NORDSTROM, INC.		45,232		230,050
	100	NVR, INC.(b)		51,542		92,000
	2,195	OMNICOM GROUP, INC.		52,802		109,662
	2,300	O’REILLY AUTOMOTIVE, INC.(b)		69,868		205,666
	1,500	PANERA BREAD CO., CLASS A(b)		69,668		238,245
	2,600	PETSMART, INC.		55,966		177,684
	600	PRICELINE.COM, INC.(b)		55,053		372,720
	14,100	PULTEGROUP, INC.(b)		58,797		256,056
	700	PVH CORP.		26,253		77,707
	1,500	RALPH LAUREN CORP.		31,320		224,880
	3,000	REGAL ENTERTAINMENT GROUP, CLASS A		29,065		41,850
	4,600	ROSS STORES, INC.		36,395		249,090
	21,031	ROYAL CARIBBEAN CRUISES LTD.		610,836		715,054
	600	SCRIPPS NETWORKS INTERACTIVE, INC., CLASS A		21,337		34,752
	600	SEARS HOLDINGS CORP.(b)		24,822		24,816
	10,400	SERVICE CORP. INTERNATIONAL		74,152		143,624
	2,600	SIGNET JEWELERS LTD.(c)		52,469		138,840
	38,500	SIRIUS XM RADIO, INC.		106,710		111,265
	14,250	STARBUCKS CORP.		182,045		764,085
	710	STARWOOD HOTELS & RESORTS
		WORLDWIDE, INC.		14,193		40,726
	12,200	TARGET CORP.		353,659		721,874
	1,000	TEMPUR-PEDIC INTERNATIONAL, INC.(b)		31,500		31,490
	900	TESLA MOTORS, INC.(b)		23,418		30,483
	4,500	THOMSON REUTERS CORP.		128,277		130,770
	1,900	THOR INDUSTRIES, INC.		22,316		71,117
	4,200	TIFFANY & CO.		122,192		240,828
	5,979	TIME WARNER CABLE, INC.		194,383		581,099
	21,033	TIME WARNER, INC.		476,695		1,006,008
	10,094	TJX COS., INC.		86,033		428,490
	2,210	TRIPADVISOR, INC.(b)		42,908		92,732
	2,800	TRW AUTOMOTIVE HOLDINGS CORP.(b)		87,856		150,108
	300	ULTA SALON COSMETICS & FRAGRANCE, INC.		29,379		29,478
	2,127	URBAN OUTFITTERS, INC.(b)		37,857		83,719
	1,700	VF CORP.		87,065		256,649
	43,792	VIACOM, INC., CLASS B		1,892,513		2,309,590
	4,000	VIRGIN MEDIA, INC.		55,548		147,000
	800	VISTEON CORP.(b)		33,968		43,056
	29,960	WALT DISNEY (THE) CO.		587,935		1,491,708
	2,300	WHIRLPOOL CORP.		98,184		234,025
	66,031	WMS INDUSTRIES, INC.(b)		1,237,799		1,155,543
	5,475	WYNDHAM WORLDWIDE CORP.		24,500		291,325
	1,600	WYNN RESORTS LTD.		32,322		179,984
	9,016	YUM! BRANDS, INC.		78,831		598,662
				24,255,584		46,619,326		11.80%
Consumer Staples:
	30,800	ALTRIA GROUP, INC.		160,507		967,736
	52,016	ARCHER-DANIELS-MIDLAND CO.		1,434,097		1,424,718
	4,300	BEAM, INC.		115,443		262,687
	2,916	BROWN-FORMAN CORP., CLASS B		57,343		184,437
	23,505	BUNGE LTD.		1,518,601		1,708,578
	4,000	CHURCH & DWIGHT CO., INC.		100,310		214,280
	3,000	CLOROX (THE) CO.		154,515		219,660
	67,781	COCA-COLA (THE) CO.		1,113,200		2,457,061
	2,300	COCA-COLA ENTERPRISES, INC.		39,664		72,979

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Core Equity Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
Consumer Staples (Cont’d):
	8,490	COLGATE-PALMOLIVE CO.	$	539,355		887,545
	3,700	CONAGRA FOODS, INC.		85,654		109,150
	4,600	CONSTELLATION BRANDS, INC., CLASS A(b)		63,227		162,794
	7,800	COSTCO WHOLESALE CORP.		237,671		770,406
	29,656	CVS CAREMARK CORP.		840,220		1,433,868
	16,185	DIAGEO PLC ADR(c)(d)		1,214,077		1,886,847
	6,000	DR PEPPER SNAPPLE GROUP, INC.		125,060		265,080
	397	ENERGIZER HOLDINGS, INC.		20,533		31,752
	3,734	ESTEE LAUDER (THE) COS., INC., CLASS A		70,943		223,517
	1,800	FLOWERS FOODS, INC.		25,434		41,886
	12,400	GENERAL MILLS, INC.		277,056		501,084
	5,800	GREEN MOUNTAIN COFFEE ROASTERS, INC.(b)		122,296		239,888
	3,900	H.J. HEINZ CO.		146,623		224,952
	3,800	HERBALIFE LTD.(c)		52,204		125,172
	2,042	HERSHEY (THE) CO.		88,044		147,473
	2,400	HORMEL FOODS CORP.		43,206		74,904
	1,700	INGREDION, INC.		48,104		109,531
	1,600	J.M. SMUCKER (THE) CO.		64,617		137,984
	5,250	KIMBERLY-CLARK CORP.		385,435		443,258
	19,209	KRAFT FOODS GROUP, INC.		499,883		873,433
	13,400	KROGER (THE) CO.		228,089		348,668
	1,574	LORILLARD, INC.		57,946		183,639
	1,200	MCCORMICK & CO., INC. (NON VOTING)		50,951		76,236
	2,200	MEAD JOHNSON NUTRITION CO.		103,422		144,958
	1,800	MOLSON COORS BREWING CO., CLASS B		54,437		77,022
	29,538	MONDELEZ INTERNATIONAL, INC., CLASS A		371,129		752,333
	900	MONSTER BEVERAGE CORP.(b)		15,478		47,592
	27,891	PEPSICO, INC.		1,058,802		1,908,581
	30,132	PHILIP MORRIS INTERNATIONAL, INC.		261,758		2,520,241
	200	POST HOLDINGS, INC.(b)		4,616		6,850
	47,360	PROCTER & GAMBLE (THE) CO.		823,796		3,215,270
	400	RALCORP HOLDINGS, INC.(b)		25,772		35,860
	4,200	REYNOLDS AMERICAN, INC.		79,844		174,006
	1,600	SAFEWAY, INC.		28,960		28,944
	5,700	SMITHFIELD FOODS, INC.(b)		106,346		122,949
	7,900	SYSCO CORP.		121,024		250,114
	6,010	TYSON FOODS, INC., CLASS A		53,610		116,594
	48,000	UNILEVER N.V. (REGISTERED)(c)		1,454,959		1,838,400
	20,150	WALGREEN CO.		231,445		745,752
	28,723	WAL-MART STORES, INC.		1,387,001		1,959,770
	4,400	WHOLE FOODS MARKET, INC.		116,393		401,852
				16,279,100		31,158,291		7.88%
Energy:
	7,542	ALPHA NATURAL RESOURCES, INC.(b)		58,865		73,459
	9,446	ANADARKO PETROLEUM CORP.		319,802		701,932
	5,300	APACHE CORP.		487,670		416,050
	1,700	ATWOOD OCEANICS, INC.(b)		51,221		77,843
	800	BAKER HUGHES, INC.		24,230		32,672
	69,000	BP PLC ADR(c)(d)		3,074,860		2,873,160
	1,600	CABOT OIL & GAS CORP.		69,825		79,584
	4,800	CAMERON INTERNATIONAL CORP.(b)		124,988		271,008
	128,100	CHESAPEAKE ENERGY CORP.		2,300,610		2,129,022
	33,595	CHEVRON CORP.		1,471,891		3,632,963
	7,200	COBALT INTERNATIONAL ENERGY, INC.(b)		63,000		176,832
	1,700	CONCHO RESOURCES, INC.(b)		49,632		136,952
	25,444	CONOCOPHILLIPS		460,670		1,475,498
	4,531	CONSOL ENERGY, INC.		118,221		145,445
	1,000	CONTINENTAL RESOURCES, INC.(b)		20,765		73,490
	37,455	COSAN LTD., CLASS A(c)		519,427		648,346
	9,300	DENBURY RESOURCES, INC.(b)		88,950		150,660
	59,403	DEVON ENERGY CORP.		3,803,353		3,091,332
	3,000	DRESSER-RAND GROUP, INC.(b)		98,595		168,420
	23,548	ENSCO PLC, CLASS A(c)		1,163,852		1,395,925
	27,570	ENTERPRISE PRODUCTS PARTNERS L.P.		1,184,195		1,380,706
	4,800	EOG RESOURCES, INC.		62,765		579,792
	4,000	EQT CORP.		132,900		235,920
	15,800	EXCO RESOURCES, INC.(b)		115,036		106,966
	77,051	EXXON MOBIL CORP.		3,049,270		6,668,764

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Core Equity Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
Energy (Cont’d):
	3,900	FMC TECHNOLOGIES, INC.(b)	$	97,950		167,037
	11,458	HALLIBURTON CO.		167,048		397,478
	3,100	HELMERICH & PAYNE, INC.		39,003		173,631
	23,395	HESS CORP.		1,249,072		1,238,999
	4,000	HOLLYFRONTIER CORP.		52,098		186,200
	53,282	KINDER MORGAN, INC.		1,503,289		1,882,453
	9,000	KOSMOS ENERGY LTD.(b)(c)		89,726		111,150
	51,390	MAGELLAN MIDSTREAM PARTNERS L.P.		1,489,018		2,219,534
	44,232	MARATHON OIL CORP.		1,056,702		1,356,153
	3,800	MARATHON PETROLEUM CORP.		209,484		239,400
	265,363	MCDERMOTT INTERNATIONAL, INC.(b)		3,084,257		2,924,300
	2,400	MURPHY OIL CORP.		32,055		142,920
	8,722	NATIONAL OILWELL VARCO, INC.		214,854		596,149
	4,200	NOBLE ENERGY, INC.		158,332		427,308
	32,840	OCCIDENTAL PETROLEUM CORP.		1,471,855		2,515,873
	2,500	OCEANEERING INTERNATIONAL, INC.		66,222		134,475
	2,500	PATTERSON-UTI ENERGY, INC.		46,600		46,575
	4,500	PEABODY ENERGY CORP.		96,557		119,745
	13,372	PHILLIPS 66		156,993		710,053
	3,200	PIONEER NATURAL RESOURCES CO.		48,507		341,088
	5,100	PLAINS EXPLORATION & PRODUCTION CO.(b)		137,712		239,394
	58,900	QEP RESOURCES, INC.		2,054,577		1,782,903
	1,200	RANGE RESOURCES CORP.		39,654		75,396
	12,200	SANDRIDGE ENERGY, INC.(b)		69,540		77,470
	21,000	SCHLUMBERGER LTD.		625,961		1,455,090
	1,100	SM ENERGY CO.		57,442		57,431
	7,200	SOUTHWESTERN ENERGY CO.(b)		107,060		240,552
	10,954	SPECTRA ENERGY CORP.		155,906		299,921
	1,200	TESORO CORP.		24,660		52,860
	29,517	TIDEWATER, INC.		1,446,858		1,318,820
	12,110	VALERO ENERGY CORP.		130,822		413,193
	2,600	WHITING PETROLEUM CORP.(b)		73,761		112,762
	7,200	WILLIAMS (THE) COS., INC.		152,628		235,728
	2,400	WPX ENERGY, INC.(b)		34,284		35,712
				35,355,080		49,050,494		12.41%
Financials:
	6,000	ACE LTD.(c)		317,873		478,800
	1,100	AFFILIATED MANAGERS GROUP, INC.(b)		73,654		143,165
	9,850	AFLAC, INC.		262,100		523,232
	2,100	ALEXANDRIA REAL ESTATE EQUITIES, INC.		111,442		145,572
	4,916	ALLEGHANY CORP.(b)		1,400,737		1,648,925
	2,700	ALLIED WORLD ASSURANCE CO. HOLDINGS A.G.(c)		86,630		212,760
	8,300	ALLSTATE (THE) CORP.		197,623		333,411
	500	AMERICAN CAMPUS COMMUNITIES, INC.		23,070		23,065
	18,333	AMERICAN EXPRESS CO.		546,904		1,053,781
	1,800	AMERICAN FINANCIAL GROUP, INC.		29,745		71,136
	94,500	AMERICAN INTERNATIONAL GROUP, INC.(b)		2,587,871		3,335,850
	22,580	AMERICAN INTERNATIONAL GROUP, INC.
		- (FRACTIONAL SHARES)(b)		-		-
	4,850	AMERICAN TOWER CORP.		264,465		374,760
	5,191	AMERIPRISE FINANCIAL, INC.		160,907		325,112
	17,300	ANNALY CAPITAL MANAGEMENT, INC.		254,587		242,892
	4,748	AON PLC(c)		110,582		263,989
	3,628	APARTMENT INVESTMENT & MANAGEMENT CO., CLASS A		39,421		98,174
	4,800	ARCH CAPITAL GROUP LTD.(b)(c)		101,982		211,296
	1,600	ARTHUR J. GALLAGHER & CO.		34,040		55,440
	2,500	ASSURANT, INC.		60,538		86,750
	2,000	ASSURED GUARANTY LTD.(c)		24,580		28,460
	1,834	AVALONBAY COMMUNITIES, INC.		180,298		248,672
	900	AXIS CAPITAL HOLDINGS LTD.(c)		23,391		31,176
	396,800	BANK OF AMERICA CORP.		4,020,451		4,602,880
	67,129	BANK OF NEW YORK MELLON (THE) CORP.		1,543,076		1,725,215
	40,258	BB&T CORP.		965,162		1,171,910
	28,300	BERKSHIRE HATHAWAY, INC., CLASS B(b)		2,323,632		2,538,510
	2,500	BIOMED REALTY TRUST, INC.		44,395		48,325
	1,400	BLACKROCK, INC.		257,653		289,394
	3,388	BOSTON PROPERTIES, INC.		171,468		358,484
	2,800	BRANDYWINE REALTY TRUST		31,804		34,132

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Core Equity Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
Financials (Cont’d):
	1,600	BRE PROPERTIES, INC.	$	50,588		81,328
	900	CAMDEN PROPERTY TRUST		24,065		61,389
	39,881	CAPITAL ONE FINANCIAL CORP.		1,810,019		2,310,306
	16,000	CAPITALSOURCE, INC.		78,410		121,280
	5,300	CBL & ASSOCIATES PROPERTIES, INC.		96,937		112,413
	1,300	CBRE GROUP, INC., CLASS A(b)		25,883		25,870
	21,400	CHARLES SCHWAB (THE) CORP.		186,608		307,304
	17,700	CHIMERA INVESTMENT CORP.		37,226		46,197
	2,700	CHUBB (THE) CORP.		86,607		203,364
	2,800	CIT GROUP, INC.(b)		100,145		108,192
	47,081	CITIGROUP, INC.		1,682,425		1,862,524
	2,000	CITY NATIONAL CORP.		75,538		99,040
	2,565	CME GROUP, INC.		94,814		130,071
	1,100	CNA FINANCIAL CORP.		25,102		30,811
	4,800	CORPORATE OFFICE PROPERTIES TRUST		107,522		119,904
	2,216	CULLEN/FROST BANKERS, INC.		122,545		120,262
	8,500	DDR CORP.		117,951		133,110
	1,900	DIGITAL REALTY TRUST, INC.		117,405		128,991
	16,287	DISCOVER FINANCIAL SERVICES		233,079		627,864
	5,200	DOUGLAS EMMETT, INC.		61,495		121,160
	6,000	E*TRADE FINANCIAL CORP.(b)		48,576		53,700
	31,128	ENDURANCE SPECIALTY HOLDINGS LTD.(c)		1,204,451		1,235,470
	400	EQUITY LIFESTYLE PROPERTIES, INC.		26,920		26,916
	5,416	EQUITY RESIDENTIAL		174,162		306,925
	100	ESSEX PROPERTY TRUST, INC.		14,666		14,665
	900	FEDERAL REALTY INVESTMENT TRUST		48,326		93,618
	1,600	FIDELITY NATIONAL FINANCIAL, INC., CLASS A		24,512		37,680
	25,300	FIFTH THIRD BANCORP		220,963		384,307
	400	FIRST CITIZENS BANCSHARES, INC., CLASS A		57,523		65,400
	30,500	FIRST HORIZON NATIONAL CORP.		193,065		302,255
	95,534	FIRST HORIZON NATIONAL CORP.
		- (FRACTIONAL SHARES)(b)		-		-
	67,197	FIRST INTERSTATE BANCSYSTEM, INC.		977,732		1,036,850
	15,200	FIRST NIAGARA FINANCIAL GROUP, INC.		120,688		120,536
	35,690	FIRST REPUBLIC BANK		1,032,094		1,169,918
	3,359	FRANKLIN RESOURCES, INC.		189,834		422,226
	1,800	GENERAL GROWTH PROPERTIES, INC.		30,582		35,730
	7,700	GENWORTH FINANCIAL, INC., CLASS A(b)		31,801		57,827
	83,600	GETTY REALTY CORP.		1,283,016		1,509,816
	8,700	GOLDMAN SACHS GROUP (THE), INC.		742,546		1,109,772
	3,500	GREENHILL & CO., INC.		106,120		181,965
	3,700	HARTFORD FINANCIAL SERVICES GROUP, INC.		62,228		83,028
	1,600	HATTERAS FINANCIAL CORP.		39,712		39,696
	1,000	HCC INSURANCE HOLDINGS, INC.		24,155		37,210
	7,100	HCP, INC.		104,919		320,778
	1,900	HEALTH CARE REIT, INC.		83,301		116,451
	2,900	HOSPITALITY PROPERTIES TRUST		49,740		67,918
	16,122	HOST HOTELS & RESORTS, INC.		138,445		252,632
	678	HOWARD HUGHES (THE) CORP.(b)		20,502		49,508
	10,500	HUDSON CITY BANCORP, INC.		65,625		85,365
	35,000	HUNTINGTON BANCSHARES, INC.		169,770		223,650
	11,400	INVESCO LTD.		176,068		297,426
	33,700	JANUS CAPITAL GROUP, INC.		222,792		287,124
	700	JONES LANG LASALLE, INC.		39,950		58,758
	60,946	JPMORGAN CHASE & CO.		1,566,752		2,679,796
	8,900	KEYCORP		55,350		74,938
	8,201	KIMCO REALTY CORP.		100,158		158,443
	3,752	LEGG MASON, INC.		52,584		96,501
	4,700	LEUCADIA NATIONAL CORP.		98,439		111,813
	1,100	LIBERTY PROPERTY TRUST		23,946		39,347
	1,100	LINCOLN NATIONAL CORP.		22,715		28,490
	6,000	LOEWS CORP.		131,444		244,500
	2,000	M&T BANK CORP.		145,114		196,940
	5,123	MACERICH (THE) CO.		121,389		298,671
	200	MARKEL CORP.(b)		67,789		86,684
	2,978	MARSH & MCLENNAN COS., INC.		66,024		102,652
	1,300	MERCURY GENERAL CORP.		38,018		51,597

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Core Equity Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
	Financials (Cont’d):
	10,900	METLIFE, INC.	$	327,220		359,046
	3,200	MFA FINANCIAL, INC.		24,800		25,952
	2,200	MOODY’S CORP.		77,502		110,704
	21,600	MORGAN STANLEY		332,129		412,992
	1,800	NASDAQ OMX GROUP (THE), INC.		45,036		45,018
	30,810	NATIONSTAR MORTGAGE HOLDINGS, INC.(b)		429,098		954,494
	7,649	NEW YORK COMMUNITY BANCORP, INC.		86,776		100,202
	2,502	NORTHERN TRUST CORP.		120,110		125,500
	4,100	NYSE EURONEXT		129,355		129,314
	245,000	OLD REPUBLIC INTERNATIONAL CORP.		2,422,210		2,609,250
	2,200	PARTNERRE LTD.(c)		119,028		177,078
	4,385	PLUM CREEK TIMBER CO., INC.		105,969		194,562
	23,002	PNC FINANCIAL SERVICES GROUP, INC.		1,129,077		1,341,247
	1,600	POPULAR, INC.(b)(c)		33,280		33,264
	6,100	PRINCIPAL FINANCIAL GROUP, INC.		140,614		173,972
	6,048	PROGRESSIVE (THE) CORP.		80,691		127,613
	10,169	PROLOGIS, INC.		257,893		371,067
	2,200	PROTECTIVE LIFE CORP.		24,849		62,876
	8,500	PRUDENTIAL FINANCIAL, INC.		257,378		453,305
	2,261	PUBLIC STORAGE		235,329		327,755
	20,062	RAYMOND JAMES FINANCIAL, INC.		621,448		772,989
	6,972	RAYONIER, INC.		104,763		361,359
	2,700	REALTY INCOME CORP.		62,340		108,567
	3,900	REGENCY CENTERS CORP.		91,178		183,768
	9,099	REGIONS FINANCIAL CORP.		36,947		64,785
	2,900	RENAISSANCERE HOLDINGS LTD.(c)		136,230		235,654
	9,800	RETAIL PROPERTIES OF AMERICA, INC., CLASS A		90,439		117,306
	7,500	SEI INVESTMENTS CO.		108,537		175,050
	2,900	SENIOR HOUSING PROPERTIES TRUST		57,884		68,556
	4,195	SIMON PROPERTY GROUP, INC.		250,319		663,187
	1,900	SL GREEN REALTY CORP.		58,204		145,635
	12,600	SLM CORP.		134,787		215,838
	4,400	ST. JOE (THE) CO.(b)		69,320		101,552
	6,000	STATE STREET CORP.		262,103		282,060
	6,634	SUNTRUST BANKS, INC.		92,816		188,074
	79,260	SYMETRA FINANCIAL CORP.		929,924		1,028,795
	25,600	SYNOVUS FINANCIAL CORP.(b)		48,740		62,720
	6,349	T. ROWE PRICE GROUP, INC.		125,884		413,510
	2,100	TAUBMAN CENTERS, INC.		60,146		165,312
	12,000	TCF FINANCIAL CORP.		111,496		145,800
	2,600	TFS FINANCIAL CORP.(b)		25,038		25,012
	5,100	TORCHMARK CORP.		138,962		263,517
	10,688	TRAVELERS (THE) COS., INC.		378,568		767,612
	17,785	U.S. BANCORP		322,544		568,053
	4,100	UDR, INC.		65,319		97,498
	1,600	UNUM GROUP		33,328		33,312
	1,100	VALIDUS HOLDINGS LTD.(c)		23,557		38,038
	3,200	VALLEY NATIONAL BANCORP		29,792		29,760
	3,200	VENTAS, INC.		162,519		207,104
	800	VORNADO REALTY TRUST		39,944		64,064
	1,106	W.R. BERKLEY CORP.		29,276		41,740
	2,900	WADDELL & REED FINANCIAL, INC., CLASS A		75,337		100,978
	1,800	WASHINGTON FEDERAL, INC.		23,535		30,366
	2,100	WEINGARTEN REALTY INVESTORS		30,002		56,217
	81,645	WELLS FARGO & CO.		1,092,068		2,790,626
	262	WHITE MOUNTAINS INSURANCE GROUP LTD.		136,992		134,930
	15,441	WILLIS GROUP HOLDINGS PLC(c)		563,070		517,737
	4,900	XL GROUP PLC(c)		95,648		122,794
	3,000	ZIONS BANCORPORATION		56,955		64,200
				44,753,254		61,301,426		15.51%
	Health Care:
	12,835	ABBOTT LABORATORIES		439,131		840,692
	8,103	AETNA, INC.		108,542		375,169
	5,600	AGILENT TECHNOLOGIES, INC.		221,244		229,264
	4,200	ALERE, INC.(b)		77,812		77,700
	3,000	ALEXION PHARMACEUTICALS, INC.(b)		58,088		281,430
	5,507	ALLERGAN, INC.		201,259		505,157
	7,200	AMERISOURCEBERGEN CORP.		115,968		310,896

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Core Equity Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
	Health Care (Cont’d):
	16,000	AMGEN, INC.	$	64,848		1,381,120
	7,500	BAXTER INTERNATIONAL, INC.		433,958		499,950
	18,945	BAYER A.G. ADR(c)(d)		1,332,790		1,817,204
	1,700	BECTON, DICKINSON AND CO.		76,290		132,923
	5,750	BIOGEN IDEC, INC.(b)		72,723		843,353
	500	BIOMARIN PHARMACEUTICAL, INC.(b)		24,660		24,625
	264,291	BOSTON SCIENTIFIC CORP.(b)		1,661,326		1,514,387
	26,100	BRISTOL-MYERS SQUIBB CO.		680,925		850,599
	1,200	C.R. BARD, INC.		72,420		117,288
	1,000	CARDINAL HEALTH, INC.		26,001		41,180
	78,000	CAREFUSION CORP.(b)		1,937,401		2,229,240
	1,900	CATAMARAN CORP.(b)		73,474		89,509
	6,736	CELGENE CORP.(b)		170,860		530,258
	1,800	CERNER CORP.(b)		40,604		139,752
	5,700	CIGNA CORP.		89,680		304,722
	3,400	COMMUNITY HEALTH SYSTEMS, INC.		58,650		104,516
	19,151	COVIDIEN PLC(c)		877,071		1,105,779
	1,425	DAVITA HEALTHCARE PARTNERS, INC.(b)		21,812		157,505
	3,700	DENTSPLY INTERNATIONAL, INC.		102,582		146,557
	3,800	EDWARDS LIFESCIENCES CORP.(b)		118,152		342,646
	14,900	ELI LILLY & CO.		587,030		734,868
	4,200	ENDO HEALTH SOLUTIONS, INC.(b)		110,376		110,334
	17,002	EXPRESS SCRIPTS HOLDING CO.(b)		255,105		918,108
	4,300	FOREST LABORATORIES, INC.(b)		149,131		151,876
	14,260	GILEAD SCIENCES, INC.(b)		231,726		1,047,397
	6,900	HEALTH MANAGEMENT ASSOCIATES, INC., CLASS A(b)		44,746		64,308
	1,300	HEALTH NET, INC.(b)		31,603		31,590
	68,310	HEALTHSOUTH CORP.(b)		1,240,167		1,442,024
	1,900	HENRY SCHEIN, INC.(b)		86,166		152,874
	85,193	HOLOGIC, INC.(b)		1,517,449		1,706,416
	33,321	HOSPIRA, INC.(b)		1,134,557		1,040,948
	3,900	HUMANA, INC.		39,107		267,657
	1,400	IDEXX LABORATORIES, INC.(b)		60,410		129,920
	2,300	ILLUMINA, INC.(b)		98,233		127,857
	600	INTUITIVE SURGICAL, INC.(b)		312,638		294,222
	70,808	JOHNSON & JOHNSON		3,357,911		4,963,641
	800	LABORATORY CORP. OF AMERICA HOLDINGS(b)		18,788		69,296
	1,873	LIFE TECHNOLOGIES CORP.(b)		59,724		91,927
	5,700	MCKESSON CORP.		202,596		552,672
	16,900	MEDTRONIC, INC.		617,995		693,238
	49,378	MERCK & CO., INC.		1,179,137		2,021,535
	1,321	METTLER-TOLEDO INTERNATIONAL, INC.(b)		91,350		255,349
	4,600	MYLAN, INC.(b)		85,192		126,408
	21,945	NOVARTIS A.G. ADR(c)(d)		1,287,171		1,389,118
	300	ONYX PHARMACEUTICALS, INC.(b)		22,644		22,659
	1,600	PATTERSON COS., INC.		29,864		54,768
	3,400	PERKINELMER, INC.		53,706		107,916
	2,900	PERRIGO CO.		109,545		301,687
	166,918	PFIZER, INC.		1,535,470		4,186,303
	3,900	QIAGEN N.V.(b)(c)		70,824		70,785
	22,139	QUEST DIAGNOSTICS, INC.		1,178,739		1,290,040
	1,000	REGENERON PHARMACEUTICALS, INC.(b)		155,108		171,070
	4,000	RESMED, INC.		81,990		166,280
	600	SALIX PHARMACEUTICALS LTD.(b)		24,294		24,288
	900	SIRONA DENTAL SYSTEMS, INC.(b)		38,745		58,014
	4,539	ST. JUDE MEDICAL, INC.		114,088		164,040
	4,700	STRYKER CORP.		18,139		257,654
	22,645	TELEFLEX, INC.		1,222,836		1,614,815
	7,500	THERMO FISHER SCIENTIFIC, INC.		162,174		478,350
	400	UNITED THERAPEUTICS CORP.(b)		21,372		21,368
	17,202	UNITEDHEALTH GROUP, INC.		273,316		933,037
	2,036	UNIVERSAL HEALTH SERVICES, INC., CLASS B		38,822		98,441
	29,760	VALEANT PHARMACEUTICALS INTERNATIONAL, INC.(b)(c)		878,700		1,778,755
	5,000	VARIAN MEDICAL SYSTEMS, INC.(b)		184,300		351,200
	3,000	VERTEX PHARMACEUTICALS, INC.(b)		74,805		125,820
	2,600	WATERS CORP.(b)		60,997		226,512
	3,175	WATSON PHARMACEUTICALS, INC.(b)		79,361		273,050
	9,249	WELLPOINT, INC.		325,438		563,449

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Core Equity Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
	Health Care (Cont’d):
	22,238	ZIMMER HOLDINGS, INC.	$	1,270,712		1,482,385
				29,982,568		48,199,690		12.19%
	Industrials:
	10,187	3M CO.		683,400		945,863
	948	ACCO BRANDS CORP.(b)		3,315		6,958
	5,250	ADT (THE) CORP.		124,100		244,072
	17,672	AGCO CORP.(b)		679,766		868,049
	75,330	AIR LEASE CORP.(b)		1,868,329		1,619,595
	500	ALLIANT TECHSYSTEMS, INC.		24,985		30,980
	5,175	AMETEK, INC.		73,220		194,425
	1,700	B/E AEROSPACE, INC.(b)		47,626		83,980
	2,700	BABCOCK & WILCOX (THE) CO.		35,478		70,740
	29,760	BOEING (THE) CO.		1,404,260		2,242,714
	2,200	CARLISLE COS., INC.		45,116		129,272
	11,004	CATERPILLAR, INC.		295,368		985,738
	2,500	CHICAGO BRIDGE & IRON CO. N.V.(c)		50,995		115,875
	400	CLEAN HARBORS, INC.(b)		22,008		22,004
	2,027	CON-WAY, INC.		44,529		56,391
	800	COPA HOLDINGS S.A., CLASS A(c)		32,618		79,560
	2,600	CORRECTIONS CORP. OF AMERICA		49,022		92,222
	3,948	CRANE CO.		66,572		182,713
	27,900	CSX CORP.		97,923		550,467
	3,700	CUMMINS, INC.		50,756		400,895
	11,163	DANAHER CORP.		255,642		624,012
	7,300	DEERE & CO.		199,160		630,866
	8,200	DELTA AIR LINES, INC.(b)		75,182		97,334
	2,160	DONALDSON CO., INC.		61,867		70,934
	3,325	DOVER CORP.		122,574		218,486
	5,469	DUN & BRADSTREET (THE) CORP.		301,952		430,137
	8,384	EATON CORP. PLC(c)		157,701		454,413
	31,183	EMCOR GROUP, INC.		892,612		1,079,244
	15,500	EMERSON ELECTRIC CO.		422,332		820,880
	200	ENGILITY HOLDINGS, INC.(b)		2,327		3,852
	195,600	EXELIS, INC.		2,224,286		2,204,412
	1,700	EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.		56,747		67,235
	3,200	FASTENAL CO.		105,341		149,408
	6,653	FEDEX CORP.		130,734		610,213
	100	FLOWSERVE CORP.		14,470		14,680
	1,950	FLUOR CORP.		26,013		114,543
	4,300	FORTUNE BRANDS HOME & SECURITY, INC.(b)		33,889		125,646
	1,400	GATX CORP.		24,276		60,620
	2,500	GENERAL CABLE CORP.(b)		60,825		76,025
	3,600	GENERAL DYNAMICS CORP.		239,388		249,372
	322,900	GENERAL ELECTRIC CO.		5,108,160		6,777,671
	2,800	GRAFTECH INTERNATIONAL LTD.(b)		26,320		26,292
	1,600	HARSCO CORP.		28,236		37,600
	6,600	HERTZ GLOBAL HOLDINGS, INC.(b)		37,676		107,382
	11,088	HONEYWELL INTERNATIONAL, INC.		399,163		703,755
	1,200	HUBBELL, INC., CLASS B		43,310		101,556
	610	HUNTINGTON INGALLS INDUSTRIES, INC.		14,978		26,437
	2,500	IDEX CORP.		58,238		116,325
	700	IHS, INC., CLASS A(b)		30,838		67,200
	5,624	ILLINOIS TOOL WORKS, INC.		205,252		341,995
	3,700	INGERSOLL-RAND PLC(b)(c)		153,006		177,452
	1,524	IRON MOUNTAIN, INC.		35,583		47,320
	28,800	ITT CORP.		517,715		675,648
	2,100	J.B. HUNT TRANSPORT SERVICES, INC.		40,530		125,391
	2,068	JACOBS ENGINEERING GROUP, INC.(b)		46,598		88,035
	2,438	JOY GLOBAL, INC.		118,055		155,496
	2,900	KANSAS CITY SOUTHERN		46,328		242,092
	2,800	KBR, INC.		55,655		83,776
	400	KIRBY CORP.(b)		24,760		24,756
	1,100	L-3 COMMUNICATIONS HOLDINGS, INC.		49,763		84,282
	1,200	LANDSTAR SYSTEM, INC.		38,351		62,952
	900	LENNOX INTERNATIONAL, INC.		26,811		47,268
	1,400	LINCOLN ELECTRIC HOLDINGS, INC.		28,970		68,152
	3,900	LOCKHEED MARTIN CORP.		194,786		359,931
	4,800	MANITOWOC (THE) CO., INC.		47,568		75,264

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Core Equity Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
	Industrials (Cont’d):
	32,238	MANPOWER, INC.	$	1,224,672		1,368,181
	13,200	MASCO CORP.		97,548		219,912
	50,407	MASTEC, INC.(b)		815,426		1,256,647
	2,200	NAVISTAR INTERNATIONAL CORP.(b)		47,586		47,894
	2,000	NIELSEN HOLDINGS N.V.(b)		61,200		61,180
	700	NORDSON CORP.		29,470		44,184
	4,760	NORFOLK SOUTHERN CORP.		99,373		294,358
	3,660	NORTHROP GRUMMAN CORP.		139,878		247,343
	6,300	OSHKOSH CORP.(b)		109,053		186,795
	1,100	OWENS CORNING(b)		22,578		40,689
	8,389	PACCAR, INC.		91,278		379,267
	2,200	PALL CORP.		55,214		132,572
	2,850	PARKER HANNIFIN CORP.		123,853		242,421
	2,519	PENTAIR LTD. (REGISTERED)(c)		73,408		123,809
	2,200	PRECISION CASTPARTS CORP.		145,807		416,724
	4,100	QUANTA SERVICES, INC.(b)		52,131		111,889
	2,800	R.R. DONNELLEY & SONS CO.		25,228		25,200
	5,700	RAYTHEON CO.		160,192		328,092
	5,250	ROCKWELL AUTOMATION, INC.		73,987		440,948
	5,214	ROCKWELL COLLINS, INC.		154,727		303,298
	600	ROPER INDUSTRIES, INC.		52,897		66,888
	23,795	RYDER SYSTEM, INC.		903,248		1,188,084
	700	SNAP-ON, INC.		17,991		55,293
	161,420	SOUTHWEST AIRLINES CO.		1,371,355		1,652,941
	66,640	SPIRIT AEROSYSTEMS HOLDINGS, INC., CLASS A(b)		1,527,185		1,130,881
	300	SPX CORP.		11,766		21,045
	2,557	STANLEY BLACK & DECKER, INC.		72,047		189,141
	2,000	STERICYCLE, INC.(b)		95,284		186,540
	1,700	TEREX CORP.(b)		31,637		47,787
	2,000	TEXTRON, INC.		49,440		49,580
	1,000	TOWERS WATSON & CO., CLASS A		56,220		56,210
	200	TRANSDIGM GROUP, INC.		26,368		27,272
	10,500	TYCO INTERNATIONAL LTD.(c)		190,755		307,125
	7,600	UNION PACIFIC CORP.		219,426		955,472
	4,828	UNITED CONTINENTAL HOLDINGS, INC.(b)		104,937		112,879
	10,340	UNITED PARCEL SERVICE, INC., CLASS B		612,760		762,368
	16,850	UNITED TECHNOLOGIES CORP.		637,288		1,381,868
	31,907	UNIVERSAL FOREST PRODUCTS, INC.		1,135,287		1,213,742
	36,163	URS CORP.		1,491,181		1,419,759
	2,000	USG CORP.(b)		12,350		56,140
	2,200	UTI WORLDWIDE, INC.		25,509		29,480
	500	VERISK ANALYTICS, INC., CLASS A(b)		25,120		25,500
	1,700	W.W. GRAINGER, INC.		74,317		344,029
	1,966	WABCO HOLDINGS, INC.(b)		30,197		128,164
	700	WABTEC CORP.		25,602		61,278
	1,650	WASTE CONNECTIONS, INC.		29,914		55,754
	8,650	WASTE MANAGEMENT, INC.		135,675		291,851
	57,600	XYLEM, INC.		1,826,023		1,560,960
				32,877,742		47,298,287		11.97%
	Information Technology:
	9,300	ACCENTURE PLC, CLASS A(c)		455,515		618,450
	5,600	ACTIVISION BLIZZARD, INC.		9,966		59,472
	6,824	ADOBE SYSTEMS, INC.(b)		101,869		257,128
	3,300	AKAMAI TECHNOLOGIES, INC.(b)		45,920		135,003
	1,600	ALLIANCE DATA SYSTEMS CORP.(b)		75,650		231,616
	5,000	ALTERA CORP.		94,155		172,200
	800	AMDOCS LTD.		27,960		27,192
	1,200	AMPHENOL CORP., CLASS A		76,532		77,640
	8,600	ANALOG DEVICES, INC.		120,368		361,716
	1,300	ANSYS, INC.(b)		34,888		87,542
	7,800	AOL, INC.		103,038		230,958
	15,400	APPLE, INC.		725,558		8,208,662
	12,100	APPLIED MATERIALS, INC.		130,014		138,424
	700	ARROW ELECTRONICS, INC.(b)		18,814		26,656
	139,250	ATMEL CORP.(b)		1,236,223		912,088
	62,211	ATMI, INC.(b)		1,210,179		1,298,966
	3,186	AUTODESK, INC.(b)		84,239		112,625

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Core Equity Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
	Information Technology (Cont’d):
	6,366	AUTOMATIC DATA PROCESSING, INC.	$	266,423		362,926
	700	AVAGO TECHNOLOGIES LTD.(c)		24,577		22,162
	53,807	AVNET, INC.(b)		1,738,897		1,647,032
	2,300	AVX CORP.		24,817		24,794
	66,726	BENCHMARK ELECTRONICS, INC.(b)		1,111,756		1,108,986
	4,550	BMC SOFTWARE, INC.(b)		89,322		180,453
	9,791	BROADCOM CORP., CLASS A		155,428		325,159
	2,180	BROADRIDGE FINANCIAL SOLUTIONS, INC.		33,318		49,878
	5,300	CA, INC.		122,856		116,494
	4,200	CADENCE DESIGN SYSTEMS, INC.(b)		24,003		56,742
	168,828	CISCO SYSTEMS, INC.		1,400,676		3,317,470
	4,234	CITRIX SYSTEMS, INC.(b)		47,866		278,386
	6,300	COGNIZANT TECHNOLOGY SOLUTIONS CORP., CLASS A(b)		95,624		466,515
	132,230	COMPUWARE CORP.(b)		1,249,466		1,437,340
	400	CONCUR TECHNOLOGIES, INC.(b)		27,272		27,008
	6,700	CORELOGIC, INC.(b)		76,313		180,364
	15,600	CORNING, INC.		85,176		196,872
	2,700	CYPRESS SEMICONDUCTOR CORP.		6,825		29,268
	2,000	DOLBY LABORATORIES, INC., CLASS A		43,420		58,660
	17,900	EBAY, INC.(b)		490,391		913,258
	2,140	ECHOSTAR CORP., CLASS A(b)		36,471		73,231
	2,000	ELECTRONIC ARTS, INC.(b)		24,020		29,060
	34,310	EMC CORP.(b)		233,560		868,043
	900	EQUINIX, INC.(b)		69,754		185,580
	1,300	F5 NETWORKS, INC.(b)		30,062		126,295
	6,600	FACEBOOK, INC., CLASS A(b)		149,724		175,758
	7,802	FIDELITY NATIONAL INFORMATION SERVICES, INC.		135,427		271,588
	3,950	FISERV, INC.(b)		108,063		312,168
	3,100	FREESCALE SEMICONDUCTOR LTD.(b)		34,162		34,131
	2,800	FUSION-IO, INC.(b)		64,232		64,204
	1,000	GLOBAL PAYMENTS, INC.		33,115		45,300
	6,676	GOOGLE, INC., CLASS A(b)		2,845,214		4,735,754
	2,800	HARRIS CORP.		37,337		137,088
	5,200	INGRAM MICRO, INC., CLASS A(b)		68,614		87,984
	143,381	INTEL CORP.		1,271,976		2,957,950
	500	INTERACTIVECORP		23,355		23,650
	18,146	INTERNATIONAL BUSINESS MACHINES CORP.		1,486,075		3,475,866
	5,000	INTUIT, INC.		103,285		297,500
	1,900	ITRON, INC.(b)		65,968		84,645
	900	JABIL CIRCUIT, INC.(b)		14,428		17,361
	8,567	JUNIPER NETWORKS, INC.(b)		147,336		168,513
	2,600	KLA-TENCOR CORP.		86,094		124,176
	4,800	LAM RESEARCH CORP.(b)		123,706		173,424
	3,700	LENDER PROCESSING SERVICES, INC.		55,722		91,094
	2,000	LEXMARK INTERNATIONAL, INC., CLASS A		30,530		46,380
	5,400	LINEAR TECHNOLOGY CORP.		119,475		185,220
	400	LINKEDIN CORP., CLASS A(b)		25,488		45,928
	23,700	LSI CORP.(b)		99,658		167,796
	14,800	MARVELL TECHNOLOGY GROUP LTD.(c)		94,528		107,448
	1,700	MASTERCARD, INC., CLASS A		182,282		835,176
	4,400	MAXIM INTEGRATED PRODUCTS, INC.		76,114		129,360
	4,200	MICROCHIP TECHNOLOGY, INC.(b)		61,036		136,878
	15,300	MICRON TECHNOLOGY, INC.(b)		68,620		97,155
	1,000	MICROS SYSTEMS, INC.(b)		26,215		42,440
	125,550	MICROSOFT CORP.		579,569		3,355,952
	56,428	MOTOROLA SOLUTIONS, INC.		2,240,348		3,141,911
	4,200	NETAPP, INC.(b)		94,994		140,910
	4,800	NEUSTAR, INC., CLASS A(b)		79,848		201,264
	4,800	NUANCE COMMUNICATIONS, INC.(b)		63,624		107,136
	8,900	NVIDIA CORP.		60,716		109,381
	116,392	ORACLE CORP.		1,579,274		3,878,181
	3,666	PAYCHEX, INC.		10,315		114,159
	27,000	QUALCOMM, INC.		863,196		1,674,540
	1,200	RACKSPACE HOSTING, INC.(b)		70,120		89,124
	4,200	RED HAT, INC.(b)		61,669		222,432
	194,283	RF MICRO DEVICES, INC.(b)		1,057,216		870,388
	2,700	RIVERBED TECHNOLOGY, INC.(b)		53,271		53,244
	214,000	SAIC, INC.		2,373,546		2,422,480

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Core Equity Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
	Information Technology (Cont’d):
	2,100	SALESFORCE.COM, INC.(b)	$	120,892		353,010
	5,300	SANDISK CORP.(b)		51,149		230,868
	5,500	SEAGATE TECHNOLOGY PLC(c)		51,728		167,640
	400	SOLERA HOLDINGS, INC.		21,484		21,388
	15,519	SYMANTEC CORP.(b)		88,098		291,912
	1,500	SYNOPSYS, INC.(b)		24,907		47,760
	37,645	TE CONNECTIVITY LTD.(c)		1,278,486		1,397,382
	4,500	TERADATA CORP.(b)		73,317		278,505
	4,400	TERADYNE, INC.(b)		40,150		74,316
	17,400	TEXAS INSTRUMENTS, INC.		280,527		538,356
	2,500	TRIMBLE NAVIGATION LTD.(b)		38,163		149,450
	1,700	VERIFONE SYSTEMS, INC.(b)		49,888		50,456
	7,900	VISA, INC., CLASS A		603,303		1,197,482
	7,800	VISHAY INTERTECHNOLOGY, INC.(b)		48,931		82,914
	557	VISHAY PRECISION GROUP, INC.(b)		5,692		7,364
	1,500	VMWARE, INC., CLASS A(b)		47,285		141,210
	5,900	WESTERN DIGITAL CORP.		91,433		250,691
	10,000	WESTERN UNION (THE) CO.		130,105		136,100
	500	WORKDAY, INC., CLASS A(b)		27,255		27,250
	92,802	XEROX CORP.		630,591		632,910
	6,750	XILINX, INC.		47,180		242,325
	15,840	YAHOO!, INC.(b)		135,325		315,216
	26,400	ZYNGA, INC., CLASS A(b)		62,832		62,568
				32,833,387		63,188,424		15.99%
	Materials:
	2,875	AIR PRODUCTS & CHEMICALS, INC.		132,510		241,558
	400	AIRGAS, INC.		16,882		36,516
	1,300	ALBEMARLE CORP.		29,152		80,756
	3,600	ALLEGHENY TECHNOLOGIES, INC.		100,332		109,296
	800	APTARGROUP, INC.		27,324		38,176
	1,600	ASHLAND, INC.		47,358		128,656
	197,049	AURICO GOLD, INC.(b)(c)		1,388,397		1,622,430
	3,064	BALL CORP.		11,968		137,114
	3,000	BEMIS CO., INC.		66,889		100,380
	1,100	CELANESE CORP., CLASS A		46,900		48,983
	1,100	CF INDUSTRIES HOLDINGS, INC.		97,135		223,476
	3,400	CLIFFS NATURAL RESOURCES, INC.		108,332		131,104
	500	COMPASS MINERALS INTERNATIONAL, INC.		27,452		37,355
	42,780	CROWN HOLDINGS, INC.(b)		1,312,976		1,574,732
	700	CYTEC INDUSTRIES, INC.		25,564		48,181
	1,000	DOMTAR CORP.(c)		52,480		83,520
	17,500	DOW CHEMICAL (THE) CO.		435,169		565,600
	14,225	E.I. DU PONT DE NEMOURS & CO.		439,400		639,698
	438	EAGLE MATERIALS, INC.		1,727		25,623
	3,000	EASTMAN CHEMICAL CO.		58,012		204,150
	3,991	ECOLAB, INC.		137,417		286,953
	82,496	FREEPORT-MCMORAN COPPER & GOLD, INC.		2,415,523		2,821,363
	900	GREIF, INC., CLASS A		27,104		40,050
	3,683	INTERNATIONAL FLAVORS & FRAGRANCES, INC.		79,231		245,067
	9,431	INTERNATIONAL PAPER CO.		117,152		375,731
	1,200	INTREPID POTASH, INC.		25,560		25,548
	3,600	LYONDELLBASELL INDUSTRIES N.V., CLASS A(c)		102,587		205,524
	700	MARTIN MARIETTA MATERIALS, INC.		27,965		65,996
	2,875	MEADWESTVACO CORP.		27,016		91,626
	10,115	MONSANTO CO.		47,604		957,385
	18,911	MOSAIC (THE) CO.		921,308		1,070,930
	82,000	NEWMONT MINING CORP.		3,953,727		3,808,080
	5,844	NUCOR CORP.		99,313		252,344
	4,750	OWENS-ILLINOIS, INC.(b)		68,062		101,032
	2,100	PACKAGING CORP. OF AMERICA		30,902		80,787
	3,986	PPG INDUSTRIES, INC.		180,558		539,505
	6,450	PRAXAIR, INC.		258,706		705,952
	2,200	RELIANCE STEEL & ALUMINUM CO.		61,215		136,620
	1,100	ROYAL GOLD, INC.		53,182		89,441
	6,500	RPM INTERNATIONAL, INC.		72,503		190,840
	53,094	RTI INTERNATIONAL METALS, INC.(b)		1,267,436		1,463,271
	118,400	SEALED AIR CORP.		2,332,433		2,073,184
	1,585	SHERWIN-WILLIAMS (THE) CO.		72,398		243,805

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Core Equity Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
	Materials (Cont’d):
	3,600	SONOCO PRODUCTS CO.	$	74,519		107,028
	3,234	SOUTHERN COPPER CORP.		38,445		122,439
	8,700	STEEL DYNAMICS, INC.		95,178		119,451
	1,273	SUNCOKE ENERGY, INC.(b)		8,474		19,846
	1,600	UNITED STATES STEEL CORP.		30,208		38,192
	3,200	VALSPAR CORP.		68,240		199,680
	2,100	VULCAN MATERIALS CO.		63,441		109,305
	1,800	WALTER ENERGY, INC.		42,609		64,584
				17,225,975		22,728,863		5.75%
	Telecommunication Services:
	96,590	AT&T, INC.		2,385,728		3,256,049
	13,013	CENTURYLINK, INC.		507,915		509,069
	8,600	CLEARWIRE CORP., CLASS A(b)		24,940		24,854
	4,600	CROWN CASTLE INTERNATIONAL CORP.(b)		194,396		331,936
	5,100	LEVEL 3 COMMUNICATIONS, INC.(b)		115,002		117,861
	5,400	METROPCS COMMUNICATIONS, INC.(b)		49,902		53,676
	11,400	NII HOLDINGS, INC.(b)		83,027		81,282
	500	SBA COMMUNICATIONS CORP., CLASS A(b)		34,910		35,510
	41,800	SPRINT NEXTEL CORP.(b)		123,442		237,006
	5,435	TELEPHONE & DATA SYSTEMS, INC.		109,150		120,331
	2,300	TW TELECOM, INC.(b)		58,604		58,581
	3,600	UNITED STATES CELLULAR CORP.(b)		126,895		126,864
	27,083	VERIZON COMMUNICATIONS, INC.		772,249		1,171,881
	23,618	WINDSTREAM CORP.		200,624		195,557
				4,786,784		6,320,457		1.60%
	Utilities:
	4,500	AGL RESOURCES, INC.		135,198		179,865
	1,000	ALLIANT ENERGY CORP.		24,835		43,910
	4,000	AMEREN CORP.		114,624		122,880
	9,200	AMERICAN ELECTRIC POWER CO., INC.		289,948		392,656
	44,610	AMERICAN WATER WORKS CO., INC.		1,158,848		1,656,369
	1,388	AQUA AMERICA, INC.		22,973		35,283
	8,600	CALPINE CORP.(b)		57,319		155,918
	5,800	CENTERPOINT ENERGY, INC.		66,308		111,650
	10,200	CMS ENERGY CORP.		144,342		248,676
	4,589	CONSOLIDATED EDISON, INC.		184,849		254,873
	8,862	DOMINION RESOURCES, INC.		284,452		459,051
	2,300	DTE ENERGY CO.		84,036		138,115
	10,851	DUKE ENERGY CORP.		395,594		692,294
	8,525	EDISON INTERNATIONAL		182,117		385,245
	3,064	ENTERGY CORP.		60,101		195,330
	17,924	EXELON CORP.		587,983		533,060
	4,700	FIRSTENERGY CORP.		189,521		196,272
	2,800	GREAT PLAINS ENERGY, INC.		43,498		56,868
	3,500	ITC HOLDINGS CORP.		154,844		269,185
	1,500	NATIONAL FUEL GAS CO.		38,322		76,035
	6,700	NEXTERA ENERGY, INC.		347,944		463,573
	6,900	NISOURCE, INC.		111,901		171,741
	4,961	NORTHEAST UTILITIES		125,492		193,876
	9,384	NRG ENERGY, INC.		149,229		215,731
	6,200	NV ENERGY, INC.		76,954		112,468
	2,400	OGE ENERGY CORP.		43,344		135,144
	2,000	ONEOK, INC.		31,518		85,500
	5,900	PG&E CORP.		79,340		237,062
	2,400	PINNACLE WEST CAPITAL CORP.		71,637		122,352
	9,000	PPL CORP.		245,589		257,670
	73,285	QUESTAR CORP.		1,256,836		1,448,111
	4,800	SCANA CORP.		166,536		219,072
	2,700	SEMPRA ENERGY		124,368		191,538
	13,100	SOUTHERN (THE) CO.		339,687		560,811
	7,600	TECO ENERGY, INC.		90,842		127,376
	3,100	UGI CORP.		51,202		101,401
	1,400	WESTAR ENERGY, INC.		25,767		40,068

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Core Equity Fund
December 31, 2012

Shares			Security	Cost		Fair value (a)		Percent of net assets
	Utilities (Cont’d):
	4,820		WISCONSIN ENERGY CORP.	$	46,469		177,617
	4,825		XCEL ENERGY, INC.		43,343		128,876
					7,647,710		11,193,522		2.83%
		Sub-total Common Stocks:			245,997,184		387,058,780		97.93%
Rights:
	Health Care:
	700		SANOFI - CVR(b)(c)		-		1,193
		Sub-total Rights:			-		1,193		0.00%
Short-Term Investments:
	26,364,287		NORTHERN INSTITUTIONAL FUNDS -
			U.S. GOVERNMENT SELECT PORTFOLIO, 0.01%(e)		26,364,287		26,364,287
		Sub-total Short-Term Investments:			26,364,287		26,364,287		6.67%
			Grand total(f)	$	272,361,471		413,424,260		104.60%

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, 2012, the value of foreign stocks or depositary receipts of companies based outside of the United States represented 6.39% of net assets.
(d)	Securities are American Depositary Receipts of companies based outside of the United States representing 2.22% of net assets.
(e)	The short-term investment is a money market portfolio of the investment company, Northern Institutional Funds. At December 31, 2011, the value of the Clearwater Core Equity Fund’s investment in the U.S. Government Select Portfolio of the Northern Institutional Funds was approximately $12,242,109 with net purchases of approximately $14,122,178 during the fiscal year ended December 31, 2012.
(f)	At December 31, 2012, the cost for Federal income tax purposes was $272,612,003. The aggregate gross unrealized appreciation and depreciation of investments in securities based on this cost were as follows:

Gross unrealized appreciation	$	145,619,425
Gross unrealized depreciation		(4,807,168	)
Net unrealized appreciation	$	140,812,257

At December 31, 2012, the Clearwater Core Equity Fund had one outstanding spot foreign currency transaction as follows:

Contracts To Deliver Currency

Amount (Local Currency)

In Exchange For Currency

Amount (Local Currency)

Settlement Date

Unrealized Gains (Losses)

Counterparty

United States Dollar

115,390

Canadian Dollar

114,582

1/3/13

$

(205

)

Northern Trust

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments – Clearwater Core Equity Fund ^(A)
December 31, 2012

^(A)Name change effective April 30, 2012. Formerly known as the Clearwater Growth Fund.

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Companies Fund^(A)
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
Common Stocks:
	Consumer Discretionary:
	4,301	1-800-FLOWERS.COM, INC., CLASS A(b)	$	13,484		15,785
	17,000	AMC NETWORKS, INC., CLASS A(b)		755,419		841,500
	1,285	AMERICA’S CAR-MART, INC.(b)		53,253		52,068
	44,695	ARCTIC CAT, INC.(b)		1,834,916		1,492,366
	43,176	BELO CORP., CLASS A		275,334		331,160
	46,473	BLACK DIAMOND, INC.(b)		326,223		381,079
	15,791	BRAVO BRIO RESTAURANT GROUP, INC.(b)		252,542		212,073
	3,871	CARRIAGE SERVICES, INC.		39,758		45,949
	5,578	CEC ENTERTAINMENT, INC.		193,171		185,134
	35,144	CENTURY CASINOS, INC.(b)		67,511		99,809
	36,465	COOPER TIRE & RUBBER CO.		427,168		924,752
	5,355	CORE-MARK HOLDING CO., INC.		214,078		253,559
	162,000	DENNY’S CORP.(b)		628,669		790,560
	25,039	DGSE COS., INC.(b)		64,315		134,710
	8,571	E.W. SCRIPPS (THE) CO., CLASS A(b)		81,564		92,653
	105,725	EXPRESS, INC.(b)		1,785,666		1,595,390
	17,955	GAIAM, INC., CLASS A(b)		63,279		56,738
	38,246	GENESCO, INC.(b)		1,882,208		2,103,530
	73,458	GENTHERM, INC.(b)		1,057,002		976,991
	264,575	HANCOCK FABRICS, INC.(b)		357,610		126,996
	28,500	HANESBRANDS, INC.(b)		652,515		1,020,870
	96,605	ICONIX BRAND GROUP, INC.(b)		1,153,286		2,156,224
	28,354	JAMBA, INC.(b)		66,399		63,513
	21,979	JOE’S JEANS, INC.(b)		25,241		21,979
	24,381	KRISPY KREME DOUGHNUTS, INC.(b)		172,692		228,694
	21,500	LAMAR ADVERTISING CO., CLASS A(b)		818,073		833,125
	22,171	LEAPFROG ENTERPRISES, INC.(b)		178,294		191,336
	22,000	MADISON SQUARE GARDEN (THE) CO., CLASS A(b)		408,574		975,700
	113,757	MAIDENFORM BRANDS, INC.(b)		2,670,631		2,217,124
	30,000	MARRIOTT VACATIONS WORLDWIDE CORP.(b)		688,452		1,250,100
	105,550	OUTDOOR CHANNEL HOLDINGS, INC.		669,564		802,180
	37,000	PENSKE AUTOMOTIVE GROUP, INC.		723,337		1,113,330
	90,667	PIER 1 IMPORTS, INC.		1,071,949		1,813,340
	34,674	PINNACLE ENTERTAINMENT, INC.(b)		354,005		548,889
	26,375	PREMIER EXHIBITIONS, INC.(b)		74,277		71,476
	49,766	QUIKSILVER, INC.(b)		173,647		211,506
	9,869	RED ROBIN GOURMET BURGERS, INC.(b)		298,412		348,277
	44,394	RENT-A-CENTER, INC.		1,478,133		1,525,378
	31,364	ROCKY BRANDS, INC.(b)		263,458		408,359
	22,562	RUBY TUESDAY, INC.(b)		155,803		177,337
	51,255	RUE21, INC.(b)		1,448,915		1,455,129
	25,000	RYLAND GROUP (THE), INC.		712,145		912,500
	43,000	SALLY BEAUTY HOLDINGS, INC.(b)		366,257		1,013,510
	89,890	SELECT COMFORT CORP.(b)		2,594,577		2,352,421
	9,212	SHILOH INDUSTRIES, INC.		97,434		94,884
	8,773	STANDARD MOTOR PRODUCTS, INC.		112,643		194,936
	41,859	STEINWAY MUSICAL INSTRUMENTS, INC.(b)		998,395		885,318
	6,557	SUMMER INFANT, INC.(b)		12,084		11,409
	24,162	TANDY LEATHER FACTORY, INC.		115,506		133,374
	38,514	TEMPUR-PEDIC INTERNATIONAL, INC.(b)		1,130,686		1,212,806
	24,330	TRUE RELIGION APPAREL, INC.		584,002		618,469
	15,500	VAIL RESORTS, INC.		580,317		838,395
	117,442	WMS INDUSTRIES, INC.(b)		2,267,433		2,055,235
	66,326	WOLVERINE WORLD WIDE, INC.		1,994,876		2,718,039
	19,000	WYNDHAM WORLDWIDE CORP.		425,309		1,010,990
	15,404	ZAGG, INC.(b)		118,439		113,373
				36,028,930		42,312,327		15.01%
	Consumer Staples:
	10,926	CENTRAL GARDEN AND PET CO.(b)		108,391		109,478
	168,210	COTT CORP.(c)		1,371,963		1,350,726
	44,819	DARLING INTERNATIONAL, INC.(b)		631,087		718,897
	5,325	DIAMOND FOODS, INC.		76,603		72,793
	40,500	FLOWERS FOODS, INC.		511,723		942,435
	28,000	HILLSHIRE BRANDS CO.		758,043		787,920
	67,847	INTER PARFUMS, INC.		1,101,078		1,320,303
	55,117	MEDIFAST, INC.(b)		865,881		1,454,538
	41,531	OMEGA PROTEIN CORP.(b)		305,229		254,170

^(A)Name change effective April 30, 2012. Formerly known as the Clearwater Small Cap Fund.

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Companies Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
	Consumer Staples (Cont’d):
	24,304	PANTRY (THE), INC.(b)	$	337,131		294,807
	54,863	S&W SEED CO.(b)		326,739		423,542
	9,830	SENECA FOODS CORP., CLASS A(b)		220,734		298,832
	40,000	SNYDERS-LANCE, INC.		898,946		964,400
	62,841	SPECTRUM BRANDS HOLDINGS, INC.		1,720,974		2,823,446
	2,447	USANA HEALTH SCIENCES, INC.(b)		76,311		80,580
				9,310,833		11,896,867		4.22%
	Energy:
	60,959	BILL BARRETT CORP.(b)		1,613,862		1,084,461
	100,683	CARRIZO OIL & GAS, INC.(b)		2,985,799		2,106,288
	11,000	DRIL-QUIP, INC.(b)		534,766		803,550
	95,916	ENDEAVOUR INTERNATIONAL CORP.(b)		914,963		496,845
	46,582	FORBES ENERGY SERVICES LTD.(b)		201,644		117,853
	28,000	GULFPORT ENERGY CORP.(b)		816,373		1,070,160
	37,500	HELIX ENERGY SOLUTIONS GROUP, INC.(b)		749,112		774,000
	290,530	HERCULES OFFSHORE, INC.(b)		1,505,140		1,795,475
	31,466	HORNBECK OFFSHORE SERVICES, INC.(b)		1,135,141		1,080,542
	129,577	KEY ENERGY SERVICES, INC.(b)		1,771,634		900,560
	32,000	OASIS PETROLEUM, INC.(b)		564,228		1,017,600
	38,500	SANCHEZ ENERGY CORP.(b)		878,506		693,000
	52,404	STEEL EXCEL, INC.(b)		1,515,227		1,307,480
	62,003	SUPERIOR ENERGY SERVICES, INC.(b)		1,467,374		1,284,702
				16,653,769		14,532,516		5.15%
	Financials:
	27,806	AGREE REALTY CORP.		646,070		744,923
	8,622	AMERICAN NATIONAL BANKSHARES, INC.		173,025		174,078
	3,151	AMERICAN SAFETY INSURANCE HOLDINGS LTD.(b)(c)		67,701		59,617
	43,313	AMTRUST FINANCIAL SERVICES, INC.		653,859		1,242,650
	27,000	ARTHUR J. GALLAGHER & CO.		562,570		935,550
	46,289	ASHFORD HOSPITALITY TRUST, INC.		367,993		486,497
	28,085	ASPEN INSURANCE HOLDINGS LTD.(c)		660,670		900,967
	50,000	ASSOCIATED BANC-CORP		666,059		656,000
	44,186	ASSOCIATED ESTATES REALTY CORP.		666,251		712,278
	26,916	BERKSHIRE HILLS BANCORP, INC.		604,733		642,216
	10,316	BNC BANCORP		85,554		82,631
	34,559	BROOKLINE BANCORP, INC.		291,739		293,752
	178,686	CAMPUS CREST COMMUNITIES, INC.		1,928,455		2,190,690
	14,964	CAPE BANCORP, INC.		138,595		130,037
	65,000	CAPITOL FEDERAL FINANCIAL, INC.		768,473		759,850
	70,476	CAPLEASE, INC.(b)		131,850		392,551
	35,000	CBOE HOLDINGS, INC.		848,346		1,031,100
	937	CENTURY BANCORP, INC., CLASS A		29,070		30,874
	63,371	CHESAPEAKE LODGING TRUST		1,001,316		1,323,187
	12,836	CLIFTON SAVINGS BANCORP, INC.		142,143		144,662
	27,024	COLONY FINANCIAL, INC.		499,505		526,968
	11,889	COMMUNITY TRUST BANCORP, INC.		391,600		389,721
	47,525	CORPORATE OFFICE PROPERTIES TRUST		1,041,239		1,187,174
	11,465	EMC INSURANCE GROUP, INC.		246,331		273,784
	16,668	EXCEL TRUST, INC.		195,480		211,184
	22,669	FINANCIAL INSTITUTIONS, INC.		389,399		422,324
	49,000	FIRST AMERICAN FINANCIAL CORP.		686,144		1,180,410
	17,488	FIRST FINANCIAL CORP.		522,556		528,837
	31,681	FIRST MERCHANTS CORP.		187,769		470,146
	23,979	FIRST PACTRUST BANCORP, INC.		297,524		294,222
	133,876	FIRSTMERIT CORP.		1,970,595		1,899,701
	50,000	FORESTAR GROUP, INC.(b)		940,728		866,500
	15,573	FRANKLIN FINANCIAL CORP.		217,750		258,200
	34,264	GETTY REALTY CORP.		556,254		618,808
	34,617	GLADSTONE CAPITAL CORP.		265,157		282,475
	15,147	GOLUB CAPITAL BDC, INC.		228,484		242,049
	9,929	HENNESSY ADVISORS, INC.		29,849		43,588
	16,070	HERITAGE FINANCIAL CORP.		201,226		236,068
	48,080	HOME FEDERAL BANCORP, INC.		611,641		597,634
	16,385	HOME PROPERTIES, INC.		895,936		1,004,564
	34,358	HORACE MANN EDUCATORS CORP.		444,663		685,786
	5,707	HORIZON BANCORP		68,965		112,143
	19,500	IBERIABANK CORP.		928,547		957,840

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Companies Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
	Financials (Cont’d):
	120,837	INVESTORS BANCORP, INC.	$	1,722,929		2,148,482
	35,719	INVESTORS CAPITAL HOLDINGS LTD.(b)		151,806		128,588
	48,699	KITE REALTY GROUP TRUST		208,256		272,227
	17,620	LAPORTE BANCORP, INC.		154,704		152,061
	60,000	MANNING & NAPIER, INC.		754,331		756,000
	119,458	MEDICAL PROPERTIES TRUST, INC.		1,177,342		1,428,718
	20,536	MEDLEY CAPITAL CORP.		280,561		299,004
	10,688	MERIDIAN INTERSTATE BANCORP, INC.(b)		157,730		179,345
	6,600	MIDSOUTH BANCORP, INC.		97,614		107,910
	37,880	NATIONAL FINANCIAL PARTNERS CORP.(b)		506,854		649,263
	46,937	NATIONAL RETAIL PROPERTIES, INC.		761,193		1,464,434
	106,755	NGP CAPITAL RESOURCES CO.		829,912		770,771
	187,615	NORTHWEST BANCSHARES, INC.		2,023,320		2,277,646
	80,162	ORITANI FINANCIAL CORP.		1,019,287		1,228,082
	18,917	PACIFIC CONTINENTAL CORP.		173,771		184,062
	47,803	PACWEST BANCORP		1,107,968		1,184,558
	13,111	PARK STERLING CORP.(b)		80,326		68,571
	33,319	PENNANTPARK INVESTMENT CORP.		352,463		366,342
	1,075	PEOPLES BANCORP, INC.		21,372		21,962
	35,000	PHH CORP.(b)		719,485		796,250
	27,246	PLATINUM UNDERWRITERS HOLDINGS LTD.(c)		808,813		1,253,316
	30,143	PREFERRED APARTMENT COMMUNITIES, INC., CLASS A		189,537		234,814
	74,318	PRIVATEBANCORP, INC.		980,425		1,138,552
	24,899	RENASANT CORP.		403,755		476,567
	36,717	RETAIL OPPORTUNITY INVESTMENTS CORP.		457,079		472,181
	111,663	ROCKVILLE FINANCIAL, INC.		1,176,110		1,440,453
	31,990	RYMAN HOSPITALITY PROPERTIES		791,509		1,230,351
	38,000	SABRA HEALTH CARE REIT, INC.		674,953		825,360
	14,195	SANDY SPRING BANCORP, INC.		254,929		275,667
	7,053	SCBT FINANCIAL CORP.		227,109		283,390
	26,664	SI FINANCIAL GROUP, INC.		261,875		306,636
	26,907	SIMMONS FIRST NATIONAL CORP., CLASS A		673,089		682,362
	12,142	SIMPLICITY BANCORP, INC.		133,682		181,523
	26,053	SOUTHSIDE BANCSHARES, INC.		528,223		548,676
	50,000	SPIRIT REALTY CAPITAL, INC.		803,435		889,000
	32,408	STANCORP FINANCIAL GROUP, INC.		1,000,017		1,188,401
	21,942	STATE BANK FINANCIAL CORP.		342,312		348,439
	25,800	STELLARONE CORP.		341,581		364,812
	153,898	SUSQUEHANNA BANCSHARES, INC.		1,126,613		1,612,851
	524,797	SYNOVUS FINANCIAL CORP.(b)		1,121,754		1,285,753
	2,792	TCP CAPITAL CORP.		40,882		41,154
	36,500	TERRITORIAL BANCORP, INC.		585,519		834,025
	16,845	THL CREDIT, INC.		230,068		249,138
	97,996	UMPQUA HOLDINGS CORP.		1,076,352		1,155,373
	17,544	UNIVEST CORP. OF PENNSYLVANIA		290,698		300,002
	28,877	URSTADT BIDDLE PROPERTIES, INC., CLASS A		498,068		568,299
	52,500	VIEWPOINT FINANCIAL GROUP, INC.		669,191		1,099,350
	65,309	WALKER & DUNLOP, INC.(b)		770,605		1,088,048
	23,000	WALTER INVESTMENT MANAGEMENT CORP.(b)		305,985		989,460
	23,143	WASHINGTON BANKING CO.		319,825		315,208
	55,778	WESTFIELD FINANCIAL, INC.		444,906		403,275
	25,000	WINTRUST FINANCIAL CORP.		855,525		917,500
				52,937,462		63,708,448		22.60%
	Health Care:
	95,875	ACCRETIVE HEALTH, INC.(b)		1,146,680		1,108,315
	18,346	ADDUS HOMECARE CORP.(b)		111,149		130,624
	29,569	ANALOGIC CORP.		2,151,786		2,196,977
	14,179	ANGIODYNAMICS, INC.(b)		171,444		155,827
	7,856	ARTHROCARE CORP.(b)		210,964		271,739
	14,933	BIOCLINICA, INC.(b)		70,834		85,417
	71,031	BIODELIVERY SCIENCES INTERNATIONAL, INC.(b)		351,577		306,144
	1,783	BIO-REFERENCE LABS, INC.(b)		46,008		51,154
	73,542	CAMBREX CORP.(b)		724,389		836,908
	31,997	CENTENE CORP.(b)		1,290,016		1,311,877
	20,102	CONCEPTUS, INC.(b)		350,233		422,343
	26,383	CRYOLIFE, INC.		148,060		164,366
	37,000	HANGER, INC.(b)		718,063		1,012,320

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Companies Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
	Health Care (Cont’d):
	9,444	HARVARD BIOSCIENCE, INC.(b)	$	38,371		41,365
	144,009	HEALTHSOUTH CORP.(b)		2,300,403		3,040,030
	152,301	HEALTHWAYS, INC.(b)		1,506,802		1,629,621
	18,622	HESKA CORP.		150,935		150,838
	61,173	HILL-ROM HOLDINGS, INC.		1,636,405		1,743,430
	79,154	ICON PLC ADR(b)(c)(d)		1,886,709		2,197,315
	58,566	MERGE HEALTHCARE, INC.(b)		207,020		144,658
	89,443	MERIT MEDICAL SYSTEMS, INC.(b)		1,246,842		1,243,258
	1,314	NATIONAL RESEARCH CORP.		66,735		71,219
	12,379	NATUS MEDICAL, INC.(b)		144,641		138,397
	13,346	NUVASIVE, INC.(b)		190,116		206,329
	12,531	OMNICELL, INC.(b)		193,370		186,336
	54,399	ORTHOFIX INTERNATIONAL N.V.(b)(c)		1,551,563		2,139,513
	22,000	PATTERSON COS., INC.		514,141		753,060
	22,810	PDI, INC.(b)		152,202		173,356
	23,125	PHARMERICA CORP.(b)		291,212		329,300
	17,453	PSYCHEMEDICS CORP.		201,042		187,620
	27,690	SALIX PHARMACEUTICALS LTD.(b)		1,172,234		1,120,891
	4,009	SURMODICS, INC.(b)		74,205		89,641
	12,951	VASCULAR SOLUTIONS, INC.(b)		141,527		204,626
	20,794	WEST PHARMACEUTICAL SERVICES, INC.		775,312		1,138,471
				21,932,990		24,983,285		8.86%
	Industrials:
	44,203	A.O. SMITH CORP.		1,988,253		2,787,883
	39,756	ACCO BRANDS CORP.(b)		269,984		291,809
	17,170	ACETO CORP.		161,988		172,387
	58,573	ACTUANT CORP., CLASS A		1,188,610		1,634,772
	15,000	ACUITY BRANDS, INC.		533,328		1,015,950
	38,000	AIR LEASE CORP.(b)		840,658		817,000
	5,000	AMERCO, INC.		538,938		634,050
	9,562	AMERICAN RAILCAR INDUSTRIES, INC.		280,660		303,402
	12,135	ASTRONICS CORP.(b)		235,485		277,649
	942	ASTRONICS CORP., CLASS B(b)		19,609		20,441
	55,000	AVIS BUDGET GROUP, INC.(b)		738,891		1,090,100
	86,651	AZZ, INC.		2,061,609		3,329,998
	32,000	BABCOCK & WILCOX (THE) CO.		726,567		838,400
	7,590	BREEZE-EASTERN CORP.(b)		54,253		56,925
	31,860	CASELLA WASTE SYSTEMS, INC., CLASS A(b)		191,279		139,547
	17,079	CECO ENVIRONMENTAL CORP.		94,807		169,936
	13,926	CELADON GROUP, INC.		208,703		251,643
	24,000	CHICAGO BRIDGE & IRON CO. N.V.(c)		408,333		1,112,400
	4,386	CIRCOR INTERNATIONAL, INC.		141,041		173,642
	25,000	COLFAX CORP.(b)		197,420		1,008,750
	15,561	COMFORT SYSTEMS USA, INC.		166,096		189,222
	22,000	CORRECTIONS CORP. OF AMERICA		666,092		780,340
	17,032	DUCOMMUN, INC.(b)		245,764		275,407
	2,388	DXP ENTERPRISES, INC.(b)		36,554		117,179
	11,858	ENNIS, INC.		156,390		183,443
	20,000	ENPRO INDUSTRIES, INC.(b)		569,233		818,000
	40,631	ESCO TECHNOLOGIES, INC.		1,403,171		1,520,006
	35,108	FEDERAL SIGNAL CORP.(b)		138,188		267,172
	32,000	FORTUNE BRANDS HOME & SECURITY, INC.(b)		637,834		935,040
	56,231	GENCORP, INC.(b)		291,058		514,514
	13,000	GENESEE & WYOMING, INC., CLASS A(b)		321,298		989,040
	9,177	GP STRATEGIES CORP.(b)		62,336		189,505
	20,576	GRAHAM CORP.		451,669		401,232
	5,286	GREENBRIER COS., INC.(b)		84,003		85,475
	17,417	HAWAIIAN HOLDINGS, INC.(b)		93,239		114,430
	82,482	ICF INTERNATIONAL, INC.(b)		1,852,733		1,933,378
	35,000	ITT CORP.		698,010		821,100
	45,000	JOHN BEAN TECHNOLOGIES CORP.		604,564		799,650
	11,000	KANSAS CITY SOUTHERN		210,643		918,280
	20,500	L.B. FOSTER CO., CLASS A		462,717		890,520
	7,858	LYDALL, INC.(b)		62,301		112,684
	25,500	MACQUARIE INFRASTRUCTURE CO. LLC		695,627		1,161,780
	12,999	MIDDLEBY CORP.(b)		604,541		1,666,602
	53,606	POLYPORE INTERNATIONAL, INC.(b)		2,153,002		2,492,679
	34,283	REGAL-BELOIT CORP.		1,884,244		2,415,923

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Companies Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
	Industrials (Cont’d):
	36,000	REXNORD CORP.(b)	$	759,725		766,800
	10,800	RUSH ENTERPRISES, INC., CLASS A(b)		180,522		223,236
	5,025	SAIA, INC.(b)		67,935		116,178
	12,607	SL INDUSTRIES, INC.		166,647		226,926
	13,547	SPARTON CORP.(b)		112,820		187,897
	8,629	STANDEX INTERNATIONAL CORP.		205,540		442,581
	30,239	TELEDYNE TECHNOLOGIES, INC.(b)		1,215,646		1,967,652
	55,352	TENNANT CO.		2,062,274		2,432,720
	36,500	TEREX CORP.(b)		831,385		1,026,015
	5,263	TREX CO., INC.(b)		141,715		195,941
	72,679	TRINITY INDUSTRIES, INC.		2,196,577		2,603,362
	35,032	TRIUMPH GROUP, INC.		1,463,202		2,287,590
	12,407	US ECOLOGY, INC.		213,326		292,061
	17,742	WABASH NATIONAL CORP.(b)		123,875		159,146
	19,112	WABTEC CORP.		974,230		1,673,064
	21,954	WOODWARD, INC.		605,792		837,106
				36,752,934		52,157,560		18.50%
	Information Technology:
	17,723	ACTUATE CORP.(b)		90,532		99,249
	56,015	ADTRAN, INC.		1,903,896		1,094,533
	16,554	ALLIANCE FIBER OPTIC PRODUCTS, INC.		150,663		198,979
	87,801	ANAREN, INC.(b)		1,077,593		1,707,729
	11,857	BADGER METER, INC.		388,152		562,140
	96,367	BRIDGELINE DIGITAL, INC.(b)		130,323		139,732
	32,000	BROADRIDGE FINANCIAL SOLUTIONS, INC.		543,517		732,160
	24,619	CALAMP CORP.(b)		169,800		204,830
	29,438	CALLIDUS SOFTWARE, INC.(b)		124,556		133,649
	37,875	CAMTEK LTD.(b)(c)		82,558		52,268
	59,138	COGNEX CORP.		1,756,558		2,177,461
	256,063	ENTROPIC COMMUNICATIONS, INC.(b)		1,957,776		1,354,573
	19,091	EVOLVING SYSTEMS, INC.		65,338		113,782
	40,189	EXAR CORP.(b)		273,828		357,682
	36,111	FRANKLIN WIRELESS CORP.(b)		92,351		72,222
	27,200	FREQUENCY ELECTRONICS, INC.		199,884		223,312
	31,036	GLOBAL CASH ACCESS HOLDINGS, INC.(b)		242,175		243,322
	142,630	GSI GROUP, INC.(b)		1,669,761		1,235,176
	47,972	HACKETT GROUP (THE), INC.		192,541		205,320
	18,893	HARMONIC, INC.(b)		84,186		95,788
	5,786	IEC ELECTRONICS CORP.(b)		39,467		39,113
	3,567	INPHI CORP.(b)		33,130		34,172
	12,596	INTEST CORP.		40,621		35,269
	35,767	IPG PHOTONICS CORP.		1,549,951		2,383,871
	28,592	KVH INDUSTRIES, INC.(b)		307,121		399,716
	22,913	LIONBRIDGE TECHNOLOGIES, INC.(b)		76,092		92,110
	28,663	LIQUIDITY SERVICES, INC.(b)		1,132,336		1,171,170
	51,923	LOGMEIN, INC.(b)		1,132,812		1,163,594
	19,635	LTX-CREDENCE CORP.(b)		126,595		128,806
	8,502	METHODE ELECTRONICS, INC.		91,863		85,275
	28,068	MIPS TECHNOLOGIES, INC.(b)		160,360		219,492
	27,950	MKS INSTRUMENTS, INC.		730,125		720,551
	41,800	NAPCO SECURITY TECHNOLOGIES, INC.(b)		68,377		152,152
	37,000	NCR CORP.(b)		878,564		942,760
	82,094	NETGEAR, INC.(b)		2,781,561		3,236,146
	64,371	NEWPORT CORP.(b)		1,056,833		865,790
	18,621	NOVA MEASURING INSTRUMENTS LTD.(b)(c)		134,096		148,596
	89,822	OFFICIAL PAYMENTS HOLDINGS, INC.(b)		563,404		506,596
	5,747	OPLINK COMMUNICATIONS, INC.(b)		108,720		89,538
	54,646	PARAMETRIC TECHNOLOGY CORP.(b)		1,150,178		1,230,081
	37,206	PERCEPTRON, INC.		216,757		219,515
	163,621	SANMINA CORP.(b)		1,654,340		1,811,284
	25,697	SELECTICA, INC.(b)		127,961		162,148
	19,001	SILICON IMAGE, INC.(b)		100,933		94,245
	55,937	SUPPORT.COM, INC.(b)		147,589		233,817
	95,412	SYNNEX CORP.(b)		2,824,707		3,280,265
	43,194	UNISYS CORP.(b)		688,124		747,256
	174,919	VALUECLICK, INC.(b)		2,761,951		3,395,178
	56,162	WESTELL TECHNOLOGIES, INC., CLASS A(b)		118,745		103,900

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Companies Fund
December 31, 2012

Shares			Security	Cost		Fair value (a)		Percent of net assets
	Information Technology (Cont’d):
	14,000		WEX, INC.(b)	$	375,767		1,055,180
	140,270		ZIX CORP.(b)		397,473		392,756
					32,772,541		36,144,249		12.82%
	Materials:
	15,000		ASHLAND, INC.		551,175		1,206,150
	4,400		CHASE CORP.		67,610		81,840
	133,368		CHEMTURA CORP.(b)		2,232,937		2,835,404
	19,933		CORE MOLDING TECHNOLOGIES, INC.(b)		182,873		131,558
	11,500		DELTIC TIMBER CORP.		546,288		812,130
	8,703		FLOTEK INDUSTRIES, INC.(b)		85,453		106,177
	45,930		HANDY & HARMAN LTD.(b)		346,633		692,165
	15,172		INNOPHOS HOLDINGS, INC.		650,573		705,498
	94,561		INNOSPEC, INC.		2,712,877		3,261,409
	13,195		KAPSTONE PAPER AND PACKAGING CORP.		249,869		292,797
	63,504		KOPPERS HOLDINGS, INC.		1,894,971		2,422,677
	13,584		LANDEC CORP.(b)		92,156		128,912
	12,747		NEENAH PAPER, INC.		363,626		362,907
	22,302		STEPAN CO.		854,666		1,238,653
	9,466		SYNALLOY CORP.		114,118		124,194
	15,000		W.R. GRACE & CO.(b)		362,905		1,008,450
	25,099		WAUSAU PAPER CORP.		223,229		217,357
					11,531,959		15,628,278		5.54%
	Utilities:
	37,421		ALLETE, INC.		1,338,109		1,533,513
	20,796		MIDDLESEX WATER CO.		385,266		406,770
	35,000		PNM RESOURCES, INC.		733,499		717,850
	74,153		PORTLAND GENERAL ELECTRIC CO.		1,674,829		2,028,826
	55,499		PURE CYCLE CORP.(b)		122,638		157,062
	39,000		QUESTAR CORP.		663,326		770,640
	26,652		SOUTHWEST GAS CORP.		802,844		1,130,311
	36,766		UIL HOLDINGS CORP.		1,179,357		1,316,590
	18,155		UNITIL CORP.		434,938		470,578
					7,334,806		8,532,140		3.03%
		Sub-total Common Stocks:			225,256,224		269,895,670		95.73%
Escrow:
	Energy:
	38,070		CVR ENERGY, INC.(b)		-		-
		Sub-total Escrow:			-		-		0.00%
Short-Term Investments:
	22,370,992		NORTHERN INSTITUTIONAL FUNDS - U.S. GOVERNMENT SELECT PORTFOLIO, 0.01%(e)		22,370,992		22,370,992
		Sub-total Short-Term Investments:			22,370,992		22,370,992		7.93%
			Grand total(f)	$	247,627,216		292,266,662		103.66%

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, 2012, the value of foreign stocks or depositary receipts of companies based outside of the United States represented 3.27% of net assets.
	(d)	Securities are American Depositary Receipts of companies based outside of the United States representing 0.78% of net assets.
	(e)	The short-term investment is a money market portfolio of the investment company, Northern Institutional Funds. At December 31, 2011, the value of the Clearwater Small Companies Fund’s investment in the U.S. Government Select Portfolio of the Northern Institutional Funds was approximately $1,896,952 with net purchases of approximately $20,474,040 during the fiscal year ended December 31, 2012.

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Companies Fund
December 31, 2012

(f) At December 31, 2012, the cost for Federal income tax purposes was $247,635,244. The aggregate gross unrealized appreciation and depreciation of investments in securities based on this cost were as follows:

Gross unrealized appreciation	$	53,273,928
Gross unrealized depreciation		(8,642,510)
Net unrealized appreciation	$	44,631,418

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments – Clearwater Small Companies Fund^(A)
December 31, 2012

^(A)Name change effective April 30, 2012. Formerly known as the Clearwater Small Cap Fund.

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2012

Par/Shares			Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Closed-End funds:
	208,600		BLACKROCK LNG-TM MUN ADV			$	2,133,992		2,626,274
	11,100		BLACKROCK MUN INC TRUST				94,733		179,931
	7,471		BLACKROCK MUNI BOND TRUST				62,993		127,007
	137,900		BLACKROCK MUNIHOLDINGS INVESTMENT QUALITY FUND				1,547,557		2,220,190
	59,600		BLACKROCK MUNIHOLDINGS QUALITY FUND II INC				787,170		898,768
	60,700		BLACKROCK MUNIYIELD INVES				759,694		1,024,009
	21,837		BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND				275,931		342,841
	81,800		BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND II INC				981,525		1,173,830
	76,179		BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND INC				1,014,103		1,192,201
	54,700		BLACKROCK MUNIYIELD PENNS				774,527		894,345
	51,500		BLACKROCK MUNIYIELD QUAL				677,589		743,660
	73,500		BLACKROCK MUNIYIELD QUALITY FUND III INC				963,910		1,124,550
	209,000		DWS MUNICIPAL INCOME TRUS				2,278,136		3,007,510
	66,800		EATON VANCE CALI MUN BOND				744,489		953,236
	110,150		INVESCO ADV MUN INC TR II				1,261,284		1,448,473
	76,505		INVESCO MUNICIPAL OPP TR				913,964		1,116,208
	94,239		INVESCO PENN VAL MUNI				1,240,054		1,441,857
	100,142		INVESCO QUALITY MUNI INC				1,173,329		1,371,945
	94,277		INVESCO TRUST INV GRD MUN				1,342,033		1,434,896
	56,248		MANAGED DURATION INVESTME				714,557		860,594
	31,103		NUVEEN CAL INV QUAL MUNI				373,215		487,695
	42,560		NUVEEN DIVIDEND ADV MUNI				523,323		642,230
	13,500		NUVEEN DIVIDEND ADVANTAGE				181,771		207,225
	41,700		NUVEEN DVD ADVANTAGE MUNI				475,800		645,516
	30,600		NUVEEN MI PREMIUM INC MUN				404,605		457,776
	44,600		NUVEEN MUNI ADVANTAGE FUN				522,316		678,366
	6,453		NUVEEN NJ INV QUAL MUNI F				87,518		98,731
	10,100		NUVEEN PA DVD ADV MUNI FD				127,550		151,702
	48,500		NUVEEN PENN INV QUAL MUNI				673,352		758,540
	27,100		NUVEEN PREMIER MUNI INC F				367,653		404,332
	238,709		NUVEEN PREMIUM INC MUNI F				3,273,534		3,628,377
	22,000		WESTERN ASSET MANAGED MUN				240,488		316,140
	38,366		WESTERN ASSET MUNICIPAL P				486,666		660,279
		Sub-total Closed-End Funds					27,479,361		33,319,234		6.32%
Municipal Bonds:
	750,000		ABAG CA FIN AUTH FOR
			NONPROFIT CORPS	9/1/2037	6.00		745,175		866,895
	650,000		ABAG CA FIN AUTH FOR
			NONPROFIT CORPS COPS	11/1/2029	6.20		634,355		650,559
	2,500,000		ACALANES CA UNION HIGH SCH
			DIST(b)	8/1/2039	4.68		1,153,120		1,709,550
	1,500,000		AGUA CALIENTE CA BAND OF
			CAHUILLA INDIANS
			REVENUE(c)	7/1/2018	6.00		1,475,843		1,469,970
	1,095,000		ALABAMA ST HSG FIN AUTH SF
			MTGE REVENUE	10/1/2028	5.25		1,095,000		1,205,420
	530,000		ALABAMA ST HSG FIN AUTH SF
			MTGE REVENUE	4/1/2038	4.50		399,325		542,778
	1,250,000		ALACHUA CNTY FL HLTH FACS
			AUTH	11/15/2016	7.13		1,250,000		1,265,350
	1,000,000		ALACHUA CNTY FL HLTH FACS
			AUTH CCRC	10/1/2032	8.00		1,181,583		1,223,170
	500,000		ALAMEDA CA CORRIDOR
			TRANSPRTN AUTH	10/1/2021	5.25		496,211		506,480
	500,000		ALAMEDA CA CORRIDOR
			TRANSPRTN AUTH	10/1/2024	5.40		421,998		560,495
	2,000,000		ALASKA ST HSG FIN CORP	12/1/2034	5.25		2,003,390		2,130,340
	750,000		ALASKA ST HSG FIN CORP
			MTGE REVENUE	12/1/2037	4.13		735,649		772,305
	500,000		ALASKA ST HSG FIN CORP
			MTGE REVENUE	12/1/2040	4.63		495,181		530,020
	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(e)	5/1/2016	6.50		240,000		35,993
	1,025,000		ALISAL CA UNION SCH DIST(b)	8/1/2025	10.55		500,435		617,675
	925,000		ALLEGHENY CNTY PA INDL DEV
			AUTH CHRT SCH REVENUE	8/15/2026	5.90		925,000		986,216

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2012

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	528,050	ALPHARETTA GA DEV AUTH
		EDLFACS REV	7/1/2031	6.25	$	513,901		300,988
	1,000,000	ALVORD CA UNIF SCH DIST(b)	8/1/2046	5.63		352,407		631,300
	946,576	ARIZONA ST HLTH FACS AUTH(d)	7/1/2027	5.25		919,824		1,014,758
	1,000,000	ARIZONA ST HLTH FACS AUTH
		HLTH CARE FACS REVENUE	10/1/2022	5.10		864,089		1,016,900
	2,000,000	ARLINGTON TX HGR EDU FIN
		CORP EDU REVENUE	8/15/2028	7.00		1,951,173		2,170,320
	785,000	ARLINGTON TX SPL OBLIG	8/15/2034	5.00		815,840		821,079
	500,000	ATLANTA GA ARPT REVENUE	1/1/2030	6.00		518,441		618,005
	1,500,000	ATLANTA GA WTR & WSTWTR
		REVENUE	11/1/2039	5.00		1,498,535		1,504,110
	1,500,000	BAY CNTY FL EDUCTNL FACS
		REVENUE	9/1/2030	5.25		1,380,177		1,579,125
	1,195,000	BELLWOOD IL	12/1/2027	5.88		1,183,881		1,167,694
	1,000,000	BEXAR CNTY TX HLTH FACS DEV
		CORP	7/1/2030	5.88		985,041		1,122,530
	500,000	BEXAR CNTY TX HSG FIN CORP	1/1/2021	5.70		453,457		500,045
	445,000	BEXAR CNTY TX HSG FIN
		CORP(e)	9/15/2021	8.75		445,000		314,277
	235,000	BEXAR CNTY TX HSG FIN CORP	12/1/2021	6.50		237,155		234,984
	805,000	BEXAR CNTY TX HSG FIN
		CORP(e)	4/1/2030	9.00		802,520		158,963
	600,000	BEXAR CNTY TX HSG FIN CORP	8/1/2030	6.10		520,881		605,982
	365,000	BEXAR CNTY TX HSG FIN CORP	8/1/2030	8.13		353,009		319,098
	1,005,000	BEXAR CNTY TX HSG FIN
		CORP(e)	6/1/2031	10.50		1,005,000		200,839
	885,000	BEXAR CNTY TX HSG FIN
		CORP(e)	12/1/2036	9.25		864,131		441,473
	2,000,000	BEXAR CNTY TX REVENUE	8/15/2039	5.00		2,169,140		2,181,720
	500,000	BOONE CNTY MO HOSP
		REVENUE	8/1/2028	5.75		511,942		580,785
	700,000	BOSTON MA REVENUE	10/1/2031	6.13		700,357		708,589
	750,000	BOWLING GREEN OH STUDENT
		HSG REVENUE	6/1/2031	5.75		719,715		840,638
	500,000	BOYNTON BEACH FLA REV	6/1/2022	5.75		500,000		513,875
	500,000	BOYNTON BEACH FLA REV	6/1/2027	6.25		500,000		516,850
	500,000	BRAZOS CNTY TX HLTH FACS
		DEV CORP	1/1/2033	5.50		503,762		548,590
	81,000	BRIDGEVILLE DE SPL OBLIG	7/1/2035	5.13		81,000		66,241
	890,000	BUCKEYE OH TOBACCO
		SETTLEMENT FING AUTH	6/1/2024	5.13		859,820		809,775
	395,000	BUTLER CNTY PA GEN AUTH
		REVENUE	10/1/2034	0.94		395,000		317,118
	500,000	CALIFORNIA CNTY CA TOBACCO
		SECURITIZATION AGY
		TOBACCO SETTLE	6/1/2036	5.00		495,224		443,250
	139,263	CALIFORNIA ST CMNTY HSG FIN
		AGY LEASE REVENUE(e)	8/1/2012	4.65		139,216		6,037
	373,490	CALIFORNIA ST CMNTY HSG FIN
		AGY LEASE REVENUE(d)(e)	11/1/2012	4.85		369,075		11,765
	750,000	CALIFORNIA ST HLTH FACS FING
		AUTH REVENUE	8/15/2033	5.50		763,844		853,598
	1,000,000	CALIFORNIA ST HSG FIN AGY
		REVENUE	8/1/2033	5.45		928,333		1,030,330
	605,000	CALIFORNIA ST HSG FIN AGY
		REVENUE	8/1/2038	5.50		607,686		619,708
	1,000,000	CALIFORNIA ST
		INFRASTRUCTURE & ECON
		DEV BANK REVENUE	2/1/2030	6.00		1,006,389		1,079,279
	500,000	CALIFORNIA ST
		INFRASTRUCTURE & ECON
		DEV BANK ST SCH FUND APP	8/15/2029	5.75		504,317		561,640
	570,000	CALIFORNIA ST MUNI FIN AUTH
		CHRT SCH LEASE REVENUE	9/1/2022	5.50		574,409		600,905

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2012

Par/Shares			Security		Maturity date		Coupon rate	Cost			Fair value(a)			Percent of net assets
Municipal Bonds (Cont’d):
	500,000		CALIFORNIA ST MUNI FIN AUTH
			REVENUE		5/1/2025		6.88	$		498,954			598,645
	1,500,000		CALIFORNIA ST SCH FACS FING
			AUTH REVENUE(b)		8/1/2029		2.42			1,079,410			1,512,660
	970,000		CALIFORNIA ST STWD CMNTYS
			DEV AUTH REVENUE		1/1/2016		5.25			966,640			982,600
	1,400,000		CALIFORNIA ST STWD CMNTYS
			DEV AUTH REVENUE		1/1/2021		6.00			1,400,000			1,513,218
	900,000		CALIFORNIA ST STWD CMNTYS
			DEV AUTH REVENUE		11/1/2021		6.50			900,000			1,029,240
	750,000		CALIFORNIA ST STWD CMNTYS
			DEV AUTH SCH FAC REVENUE		7/1/2020		5.00			713,637			754,635
	750,000		CALIFORNIA ST STWD CMNTYS
			DEVAUTH MFH REVENUE		7/15/2032		4.70			750,000			830,790
	255,000		CAPITAL TRUST AGY FL MF
			REVENUE(e)		6/1/2013		4.75			255,000			145,337
	750,000		CAPITAL TRUST AGY FL MF
			REVENUE(e)		6/1/2038		5.88			762,053			427,462
	1,000,000		CARLSBAD CA UNIF SCH DIST(b)		8/1/2031		4.17			569,130			803,530
	1,003,870		CARLSBAD NM INDL DEV
			REVENUE(d)		4/15/2021		5.75			1,025,542			909,527
	1,000,000		CARMEL IN REVENUE		11/15/2022		6.00			981,667			1,063,480
	1,000,000		CARMEL IN REVENUE		11/15/2027		7.00			1,027,002			1,109,390
	500,000		CEDAR FALLS IA CMNTY SCH
			DIST SCH INFRASTRUCTURE
			SALES SVCS		6/1/2027		5.38			498,741			560,460
	1,000,000		CENTER CA UNIF SCH DIST(b)		8/1/2031		12.90			337,618			376,470
	1,000,000		CENTRL BRADFORD PROGRESS
			AUTH PA		12/1/2031		5.50			1,035,532			1,175,470
	500,000		CENTRL TX REGL MOBILITY
			AUTH REVENUE		1/1/2031		5.75			495,572			591,300
	595,000		CHANDLER PARK ACADEMY MI
			PUBLIC SCH ACADEMY
			REVENUE		11/1/2022		5.00			458,028			597,451
	910,000		CHAUTAUQUA CNTY NY CAPITAL
		RESOURCE CORP REVENUE		11/15/2016		6.75			894,774			989,871
	275,000	CHESTERFIELD CNTY VA INDL
		DEV AUTH MF REVENUE		7/1/2019		5.20			260,182			275,693
	500,000	CHICAGO IL		1/1/2035		5.25			513,422			557,275
	10,000	CHICAGO IL MET HSG DEV
		CORP		7/1/2022		6.85			10,000			10,032
	400,000	CITIZEN POTAWATOMI NATION
		OK SENIOR OBLG TAX
		REVENUE		9/1/2016		6.50			400,000			395,884
	250,000	CLARK CNTY NV ECON DEV
		REVENUE		5/15/2033		5.38			250,665			253,372
	355,000	CLEARWATER FL HSG AUTH		5/1/2024		5.35			268,756			354,968
	685,000	CLIFTON TX HGR EDU FIN CORP
		EDU REVENUE		2/15/2018		7.75			677,860			756,946
	500,000	CLIFTON TX HGR EDU FIN CORP
		EDU REVENUE		8/15/2031		5.50			483,010			548,480
	1,000,000	CMNTY MEMORIAL HOSP DIST
		MO HOSP REVENUE		12/1/2034		6.68			887,892			950,400
	225,000	COLLIER CNTY FL HSG FIN
		AUTH MF HSG REVENUE		8/15/2015		5.25			224,646			225,668
	750,000	COLLIER CNTY FL INDL DEV
		AUTH		10/1/2039		6.25			735,657			877,875
	1,500,000	COLORADO ST EDUCTNL &
		CULTURAL FACS AUTH INDEP
		SCH REVENUE		5/1/2030		6.00			1,460,499			1,626,435
	835,000	COLORADO ST EDUCTNL &
		CULTURAL FACS AUTH
		REVENUE		11/15/2028		6.75			835,000			967,314

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2012

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	1,000,000	COLORADO ST EDUCTNL &
		CULTURAL FACS AUTH
		REVENUE	6/1/2033	5.50	$	975,977		1,105,410
	1,000,000	COLORADO ST EDUCTNL &
		CULTURAL FACS AUTH
		REVENUE	7/1/2034	5.60		993,738		1,062,510
	350,000	COLORADO ST EDUCTNL &
		CULTURAL FACS AUTH
		REVENUE	12/1/2039	5.13		331,184		370,755
	800,000	COLORADO ST HLTH FACS AUTH
		REVENUE	12/1/2042	5.00		821,137		855,752
	635,000	COLORADO ST HSG & FIN AUTH	10/1/2029	5.40		635,000		683,355
	720,000	COLORADO ST HSG & FIN AUTH	11/1/2029	5.50		720,000		746,244
	625,000	COLORADO ST HSG FIN AUTH
		SF MTGE REVENUE	11/1/2034	5.00		625,037		652,888
	1,000,000	COLTON CA JT UNIF SCH DIST(b)	8/1/2035	3.46		568,507		718,180
	500,000	COMANCHE CNTY OK HOSP
		AUTH REVENUE	7/1/2032	5.00		536,331		534,710
	1,000,000	CONNECTICUT ST HSG FIN
		AUTH	11/15/2035	4.75		1,000,000		1,078,900
	980,000	CONNECTICUT ST HSG FIN
		AUTH	11/15/2041	4.63		975,180		1,054,500
	385,000	CONNECTICUT ST HSG FIN
		AUTH	11/15/2041	5.00		385,000		423,758
	1,500,000	CONNECTICUT ST HSG FIN
		AUTH HSG MTGE FIN
		PROGRAM	11/15/2035	3.75		1,500,000		1,524,780
	5,000,000	CONNECTICUT ST HSG FIN
		AUTH HSG MTGE FIN
		PROGRAM	5/15/2042	4.15		5,000,000		5,226,550
	1,000,000	CONNECTICUT ST HSG FIN
		AUTH HSG MTGE FIN
		PROGRAM	11/15/2042	3.40		996,004		956,040
	5,000,000	CONNECTICUT ST HSG FIN
		AUTH HSG MTGE FIN
		PROGRAM	11/15/2047	3.65		5,000,000		4,885,200
	500,000	COOK CNTY IL SCH DIST #83	6/1/2031	5.38		489,973		577,685
	1,105,000	CORONA-NORCO CA UNIF SCH
		DIST(b)	8/1/2039	2.24		699,369		1,100,812
	637,000	CORTLAND IL SPL TAX
		REVENUE(e)	3/1/2017	5.50		633,881		429,809
	680,000	CROW FIN AUTH MT TRIBAL
		PURPOSE REVENUE	10/1/2017	5.65		661,315		682,217
	750,000	CULLMAN CNTY AL HLTH CARE
		AUTH	2/1/2023	6.25		736,219		820,808
	500,000	CUYAHOGA CNTY OH HSG MTGE
		REVENUE	3/20/2042	5.70		512,737		549,130
	3,214,000	DALLAS TX HSG FIN CORP	10/20/2032	6.75		3,187,090		3,245,240
	2,000,000	DAMON RUN IN CONSERVANCY
		DIST	7/1/2025	6.10		2,037,444		2,226,820
	1,000,000	DAMON RUN IN CONSERVANCY
		DIST	1/1/2027	6.38		1,014,536		1,123,810
	500,000	DAVIESS CNTY IN HOSP ASSN
		LEASE RENTAL REVENUE	1/15/2029	5.25		489,356		561,215
	1,000,000	DEKALB/KANE/LA SALLE CNTYS
		IL CMNTY CLG DIST #523(b)	2/1/2029	11.72		381,604		450,680
	440,000	DELAWARE ST HSG AUTH
		REVENUE	7/1/2031	5.20		440,000		485,839
	108,717	DENHAM SPRINGS-LIVINGSTON
		LA HSG & MTGE FIN AUTH	11/1/2040	5.00		112,335		109,680
	500,000	DINUBA CA FING AUTH LEASE
		REVENUE	9/1/2038	5.38		494,829		507,680
	500,000	DIST OF COLUMBIA HSG FIN
		AGY MF HSG REVENUE	7/1/2033	5.45		500,000		582,740
	1,000,000	DIST OF COLUMBIA HSG FIN
		AGY MF HSG REVENUE	6/1/2040	4.90		1,000,000		1,075,450

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2012

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	1,000,000	DIST OF COLUMBIA HSG FIN AGY MF HSG REVENUE	6/1/2041	5.00	$	1,000,000		1,090,800
	3,000,000	DUBLIN CA UNIF SCH DIST(b)	8/1/2034	15.06		773,505		839,460
	550,000	E CHICAGO IN REDEV COMMISSION LAKE FRONT REDEV AREA TAX	7/15/2014	5.00		550,000		554,196
	565,000	E CHICAGO IN REDEV COMMISSION LAKE FRONT REDEV AREA TAX	1/15/2015	5.25		565,000		568,842
	1,000,000	EARLIMART CA ELEM SCH DIST	8/1/2037	5.00		1,121,068		1,108,320
	910,000	EAST POINT GA	2/1/2026	8.00		910,000		911,492
	2,045,000	EDEN TWP CA HOSP DIST COPS	6/1/2030	6.00		2,023,113		2,263,692
	750,000	EL PASO DE ROBLES CA REDEV AGY TAX ALLOCATION REVENUE	7/1/2033	6.38		741,916		860,310
	500,000	ELKHART CNTY IN HOSP AUTH	8/15/2020	5.25		500,000		500,960
	1,000,000	ENCINITAS CA UNION SCH DIST(b)	8/1/2035	4.54		510,571		777,880
	1,155,000	ENTERPRISE CA ELEM SCH DIST(b)	8/1/2035	3.73		635,011		893,011
	1,000,000	ERIE CNTY PA HOSP AUTH	7/1/2027	7.00		1,000,000		1,103,440
	500,000	FAIRFAX CNTY VA REDEV & HSG AUTH MF REVENUE	8/1/2039	5.60		500,000		550,685
	239,000	FARMS NEW KENT VA CMNTY DEV AUTH SPL ASSMNT	3/1/2036	5.13		239,000		141,130
	1,000,000	FESTIVAL RANCH AZ CMNTY FACS DIST	7/15/2024	6.25		1,013,325		1,097,120
	315,000	FIDDLERS CREEK FL CDD #2 SPL ASSMNT REVENUE(e)	5/1/2013	5.75		314,118		165,482
	800,000	FLAGSTAFF AZ INDL DEV AUTH	7/1/2022	5.50		743,921		809,480
	1,000,000	FLORIDA ST GOVTL UTILITY AUTH UTILITY REVENUE	10/1/2037	5.00		1,052,400		1,094,390
	470,000	FLORIDA ST HSG FIN CORP REVENUE	7/1/2026	5.00		471,479		504,512
	375,000	FLORIDA ST HSG FIN CORP REVENUE	7/1/2033	5.45		375,000		408,724
	1,565,000	FLORIDA ST HSG FIN CORP REVENUE	7/1/2034	5.30		1,576,907		1,693,440
	500,000	FLORIDA ST MID-BAY BRIDGE AUTH(b)	10/1/2021	9.78		283,475		288,535
	330,000	FOREST CREEK FL CDD CAPITAL IMPT REVENUE	11/1/2013	7.00		354,834		327,004
	1,250,000	FORT SILL APACHE TRIBE OK ECONDEV AUTH GAMING ENTERPRISE REV(c)	8/25/2026	8.50		1,250,000		1,379,325
	750,000	FRANKLIN PARK IL	7/1/2030	4.00		727,003		699,308
	1,145,000	FULTON CNTY GA DEV AUTH	11/1/2028	5.25		987,738		1,115,734
	1,000,000	FYI PROPERTIES WA LEASE REVENUE	6/1/2034	5.50		981,410		1,135,540
	500,000	GAINESVILLE & HALL CNTY GA DEV AUTH RETMNT CMNTY REVENUE	11/15/2029	6.38		513,217		578,100
	1,332,225	GALVESTON TX MUNI UTILITY DIST #52	2/27/2013	6.01		1,297,572		1,066,046
	400,000	GEISINGER PA AUTH	5/1/2037	1.07		400,000		312,272
	500,000	GEORGIA ST ENVRNMNTL LOAN ACQUISITION CORP LOC GOVT LOAN SEC	2/15/2031	5.13		495,631		580,760
	3,000,000	GEORGIA ST ENVRNMNTL LOAN ACQUISITION CORP LOC GOVT LOAN SEC	3/15/2031	5.13		3,000,000		3,479,760
	500,000	GEORGIA ST ENVRNMNTL LOAN ACQUISITION CORP LOC GOVT LOAN SEC	2/15/2036	5.25		491,778		575,875
	2,000,000	GEORGIA ST HSG & FIN AUTH REVENUE	12/1/2037	4.00		2,000,000		2,074,420

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2012

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	500,000	GILA CNTY AZ UNIF SCH DIST #10 PAYSON	7/1/2028	5.75	$	478,347		587,230
	2,000,000	GLENDALE CA UNIF SCH DIST(b)	9/1/2028	11.02		755,801		886,360
	750,000	GTR WENATCHEE WA REGL EVENTS CENTER PUBLIC FACS DIST REVENUE	9/1/2032	5.25		738,670		749,940
	330,000	HAMDEN CT FAC REVENUE	1/1/2014	6.13		328,502		330,512
	1,250,000	HAMILTON CNTY OH HLTH CARE REVENUE	1/1/2031	6.13		1,216,783		1,332,825
	1,000,000	HAMMOND IN LOCAL PUBLIC IMPT BOND BANK SPL REVENUE	8/15/2025	6.50		1,014,311		1,047,220
	1,000,000	HAMMOND IN LOCAL PUBLIC IMPT BOND BANK SPL REVENUE	8/15/2030	6.50		1,007,143		1,043,850
	500,000	HAMMOND IN REDEV DIST REVENUE	1/15/2017	6.00		500,000		519,495
	1,250,000	HARRIS CNTY TX CULTURAL EDU FACS FIN CORP REVENUE(c)	8/15/2021	6.75		1,250,000		1,395,050
	1,500,000	HARTNELL CA CMNTY CLG DIST(b)	8/1/2034	5.71		695,423		1,130,070
	250,000	HARVEY IL	12/1/2027	5.50		197,539		245,748
	590,000	HAWAII ST DEPT OF BUDGET & FIN SPL PURPOSE SENIOR LIVING REV	11/15/2029	8.75		582,230		710,950
	500,000	HAWAII ST DEPT OF BUDGET & FIN SPL PURPOSE SENIOR LIVING REV	11/15/2037	5.25		507,654		523,910
	1,000,000	HAWTHORNE CA SCH DIST(b)	11/1/2026	11.90		404,230		532,340
	3,500,000	HEALDSBURG CA UNIF SCH DIST(b)	8/1/2037	2.25		2,250,863		2,202,935
	1,000,000	HELENDALE CA SCH DIST(b)	8/1/2034	3.31		592,763		841,950
	255,000	HIGHLANDS CNTY FL HLTH FACS AUTH	11/15/2027	5.00		256,590		278,486
	500,000	HIGHLANDS CNTY FL HLTH FACS AUTH	11/15/2032	5.13		501,134		549,620
	167,000	HOUMA-TERREBONNE LA PUBLIC TRUST FING AUTH SF MTGE	12/1/2040	5.15		173,330		169,847
	1,000,000	HOUSTON TX HOTEL OCCUPANCY TAX & SPL REVENUE	9/1/2030	5.00		1,029,177		1,022,160
	245,000	IDAHO ST HSG & FIN ASSN NONPROFIT FACS REVENUE	8/1/2017	6.25		245,000		244,973
	750,000	IDAHO ST HSG & FIN ASSN NONPROFIT FACS REVENUE	7/1/2030	5.50		750,000		770,858
	600,000	IDAHO ST HSG & FIN ASSN SF MTGE REVENUE	7/1/2026	5.65		611,950		665,952
	5,000	IDAHO ST HSG & FIN ASSN SF MTGE REVENUE	7/1/2038	5.50		5,000		5,000
	175,000	IDAHO ST HSG & FIN ASSN SF MTGE REVENUE	1/1/2040	5.50		175,000		182,693
	900,000	ILLINOIS ST COPS	7/1/2017	5.80		900,000		901,341
	250,000	ILLINOIS ST DEV FIN AUTH	5/15/2021	5.50		250,000		251,078
	1,000,000	ILLINOIS ST FIN AUTH CHRT SCH REVENUE	10/1/2031	6.88		1,000,000		1,149,630
	1,500,000	ILLINOIS ST FIN AUTH EDU REVENUE	9/1/2027	5.00		1,453,959		1,503,615
	900,000	ILLINOIS ST FIN AUTH REVENUE	5/15/2017	6.00		900,000		900,972
	610,000	ILLINOIS ST FIN AUTH REVENUE	8/15/2026	6.00		619,523		628,922
	1,000,000	ILLINOIS ST FIN AUTH REVENUE	11/15/2026	5.25		969,860		1,037,110
	500,000	ILLINOIS ST FIN AUTH REVENUE	3/15/2027	5.00		514,975		554,650
	1,000,000	ILLINOIS ST FIN AUTH REVENUE	5/15/2027	5.50		1,033,438		1,040,780
	500,000	ILLINOIS ST FIN AUTH REVENUE	5/15/2029	5.25		504,658		533,340
	1,045,000	ILLINOIS ST FIN AUTH REVENUE	5/15/2030	5.50		1,072,098		1,072,630
	1,500,000	ILLINOIS ST FIN AUTH REVENUE	8/15/2036	5.25		1,474,956		1,626,450
	805,000	ILLINOIS ST FIN AUTH REVENUE	2/1/2037	5.25		799,808		817,655

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2012

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	500,000	ILLINOIS ST FIN AUTH REVENUE	3/1/2038	6.00	$	485,455		570,550
	750,000	ILLINOIS ST FIN AUTH SPORTS FAC REVENUE(c)(e)(f)	10/1/2027	6.13		730,795		44,655
	500,000	ILLINOIS ST FIN AUTH SPORTS FAC REVENUE(c)(e)(f)	10/1/2037	6.25		484,210		29,770
	1,000,000	ILLINOIS ST FIN AUTH STUDENT HSG REVENUE	10/1/2024	6.00		989,595		1,150,350
	335,000	ILLINOIS ST HLTH FACS AUTH	5/15/2014	6.25		335,000		336,256
	750,000	ILLINOIS ST HLTH FACS AUTH	8/15/2028	5.38		738,332		750,870
	500,000	ILLINOIS ST HLTH FACS AUTH REVENUE	7/1/2033	6.00		502,748		510,850
	2,100,000	ILLINOIS ST HLTH FACS AUTH REVENUE	8/15/2033	5.10		2,107,992		2,119,131
	500,000	ILLINOIS ST HSG DEV AUTH	7/1/2047	4.50		466,055		504,635
	1,000,000	ILLINOIS ST SPORTS FACS AUTH	6/15/2032	5.00		1,014,343		1,006,510
	1,000,000	IMPERIAL CA CMNTY CLG DIST(b)	8/1/2040	1.12		858,151		1,027,570
	250,000	INDEPENDENCE MO THIRTY-NINTH STREET TRANSPRTN DIST REVENUE	9/1/2032	6.88		250,000		259,742
	500,000	INDIANA ST BOND BANK REVENUE	2/1/2029	5.50		491,079		566,345
	750,000	INDIANA ST FIN AUTH HOSP REVENUE	5/1/2031	5.75		771,951		867,188
	3,000,000	INDIANA ST FIN AUTH REVENUE	9/15/2030	6.50		3,078,661		3,386,190
	500,000	INDIANA ST FIN AUTH REVENUE	11/15/2031	5.50		492,472		549,650
	500,000	INDIANA ST FIN AUTH REVENUE	3/1/2034	4.00		503,812		488,105
	1,000,000	INDIANA ST FIN AUTH REVENUE	3/1/2041	5.00		1,076,853		1,080,840
	1,000,000	INDIANA ST HLTH & EDUCTNL FAC FING AUTH HOSP REVENUE	2/15/2030	5.25		753,469		1,039,580
	6,506,976	INTERMEDIATE SCH DIST #287 MN LEASE REVENUE	11/1/2032	5.30		6,279,667		6,830,438
	144,631	IOWA ST FIN AUTH SENIOR HSG REVENUE(e)	12/1/2014	5.00		144,288		5,340
	410,000	IOWA ST STUDENT LOAN LIQUIDITY CORP	12/1/2027	5.50		401,426		442,456
	2,000,000	JEFFERSON CA UNION HIGH SCH DIST SAN MATEO CNTY(b)	8/1/2031	26.18		471,237		500,540
	439,000	JEFFERSON CNTY KY MTGE REVENUE	11/15/2013	6.13		439,000		440,291
	745,000	JEFFERSON PARISH LA FIN AUTH	6/1/2038	5.00		776,634		789,164
	175,000	JEFFERSON PARISH LA FIN AUTH	12/1/2048	5.70		183,396		185,612
	1,410,000	KALISPEL TRIBE OF INDIANS PRIORITY DIST WA REVENUE	1/1/2016	6.20		1,376,340		1,403,895
	1,250,000	KANSAS CITY MO INDL DEV AUTH	9/1/2023	5.45		1,250,000		1,344,650
	1,000,000	KANSAS CITY MO INDL DEV AUTH	11/20/2039	5.10		1,000,000		1,086,410
	500,000	KENTUCKY ST ECON DEV FIN AUTH MF HSG REVENUE	11/20/2035	5.38		500,000		540,230
	450,000	KENTUCKY ST HSG CORP HSG REVENUE	7/1/2039	5.15		450,000		489,312
	1,940,000	KERRVILLE TX HLTH FACS DEV CORP HOSP REVENUE	8/15/2035	5.45		1,914,358		1,942,735
	750,000	KING CNTY WA HSG AUTH	5/1/2028	5.20		750,000		838,095
	500,000	KIRKWOOD MO INDL DEV AUTH RETMNT CMNTY REVENUE	5/15/2021	8.00		500,000		567,420
	900,000	KLICKITAT CNTY WA PUBLIC HOSP DIST #2 HOSP REVENUE	12/1/2020	6.00		843,389		933,597
	2,500,000	KOYUKUK AK REVENUE	10/1/2023	7.00		2,430,888		2,762,125
	1,390,000	KREMMLING CO MEMORIAL HOSP DIST COPS	12/1/2022	6.00		1,377,220		1,528,458
	1,500,000	LA MIRADA CA REDEV AGY(b)	8/15/2027	14.17		558,042		660,390

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2012

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	744,000	LAFAYETTE LA PUBLIC TRUST FING AUTH SF MTGE	1/1/2041	5.35	$	759,842		777,361
	2,000,000	LAKEWOOD RANCH FL STEWARDSHIP DIST SPL ASSMNT REVENUE	5/1/2030	7.40		1,980,688		2,201,240
	2,000,000	LAS VEGAS NV REDEV AGY TAX INCR REVENUE	6/15/2023	7.50		1,981,931		2,272,920
	1,000,000	LEE CNTY FL INDL DEV AUTH	11/15/2029	5.00		835,067		1,010,100
	940,000	LEHIGH CNTY PA GEN PURPOSE AUTH	12/15/2023	6.00		861,233		941,260
	250,000	LEHIGH CNTY PA GEN PURPOSE AUTH	8/15/2042	1.31		250,000		186,180
	495,000	LEXINGTON OAKS FL CDD SPL ASSMNT REVENUE	5/1/2033	5.65		495,000		540,827
	500,000	LOMBARD IL PUBLIC FACS CORP CONFERENCE CENTER & HOTEL REVENU	1/1/2015	6.38		500,000		404,635
	550,000	LOMBARD IL PUBLIC FACS CORP CONFERENCE CENTER & HOTEL REVENU	1/1/2030	5.50		567,433		349,679
	1,000,000	LOMBARD IL PUBLIC FACS CORP CONFERENCE CENTER & HOTEL REVENU	1/1/2036	5.25		1,008,455		465,870
	2,000,000	LOS ANGELES CA HSG AUTH	6/1/2029	5.00		1,712,162		2,008,560
	1,250,000	LOUDOUN CNTY VA INDL DEV AUTH RSDL CARE FAC REVENUE	8/1/2028	6.00		1,251,639		1,340,775
	500,000	LOUISIANA ST HSG FIN AGY SF MTGE REVENUE	12/1/2034	5.10		500,000		549,160
	185,000	LOUISIANA ST HSG FIN AGY SF MTGE REVENUE	6/1/2038	5.85		193,642		197,475
	895,000	LOUISIANA ST HSG FIN AGY SF MTGE REVENUE	12/1/2038	5.70		924,492		953,094
	235,000	LOUISIANA ST HSG FIN AGY SF
		MTGE REVENUE	6/1/2039	5.60		242,434		262,199
	400,000	LOUISIANA ST LOCAL GOVT
		ENVRNMNTL FACS & CMNTY
		DEV AUTH	6/20/2028	8.00		400,000		392,696
	750,000	LOUISIANA ST PUBLIC FACS
		AUTH REVENUE	5/1/2031	6.50		746,745		874,200
	500,000	LOUISIANA ST PUBLIC FACS
		AUTH REVENUE	2/15/2036	0.99		500,000		446,930
	1,000,000	LOUISIANA ST TRANSPRTN
		AUTH TOLL REVENUE(b)	12/1/2027	9.18		451,081		457,900
	500,000	LUCAS CNTY OH HLTH CARE
		FACS REVENUE	8/15/2030	5.50		491,656		551,150
	1,490,000	LUZERNE CNTY PA	11/1/2026	7.00		1,573,350		1,797,208
	342,229	LYONS CO	11/30/2016	4.75		344,099		345,576
	1,000,000	MACON CNTY IL SCH DIST #61	1/1/2037	5.25		1,030,868		1,130,870
	430,000	MADISON CNTY FL	7/1/2025	6.00		424,418		418,485
	250,000	MAGNOLIA CREEK FL CDD
		CAPITAL IMPT REVENUE(e)	5/1/2014	5.60		250,000		87,508
	1,000,000	MAINE ST HLTH & HGR EDUCTNL
		FACS AUTH REVENUE	7/1/2026	6.00		999,530		1,183,650
	1,000,000	MAINE ST HLTH & HGR EDUCTNL
		FACS AUTH REVENUE	7/1/2032	7.50		1,053,098		1,279,790
	1,000,000	MAINE ST TECH CLG SYS COPS	1/1/2017	5.80		1,000,000		1,004,170
	1,000,000	MALTA IL TAX INCR REVENUE	12/30/2025	5.75		1,000,000		644,950
	500,000	MANATEE CNTY FL SCH BRD	7/1/2031	5.63		495,707		581,130
	500,000	MANCHESTER NH HSG & REDEV AUTH REVENUE	1/1/2015	6.75		496,899		487,855
	500,000	MANCHESTER NH HSG & REDEV AUTH REVENUE(b)	1/1/2020	7.87		341,078		245,355
	452,000	MANHATTAN IL SPL SVC AREA SPL TAX(e)	3/1/2022	5.75		452,000		113,023
	500,000	MANSFIELD OH	12/1/2024	6.00		521,478		587,445
	600,000	MANTECA CA FING AUTH SWR REVENUE	12/1/2033	5.00		556,893		625,488

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2012

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	349,000	MARQUIS VA CMNTY DEV AUTH REVENUE	9/1/2041	5.63	$	378,073		311,144
	462,000	MARQUIS VA CMNTY DEV AUTH REVENUE(b)	9/1/2041	22.45		71,580		49,951
	1,175,000	MARTIN CNTY FL HLTH FACS AUTH	11/15/2032	5.50		1,206,423		1,309,208
	750,000	MARTINEZ CA UNIF SCH DIST(b)	8/1/2035	0.87		627,569		827,558
	500,000	MARYLAND ST CMNTY DEV ADMIN DEPT HSG & CMNTY DEV	9/1/2030	5.13		500,000		564,455
	500,000	MARYLAND ST CMNTY DEV ADMIN DEPT HSG & CMNTY DEV	7/1/2031	4.50		500,000		545,900
	1,000,000	MARYLAND ST HLTH & HGR EDUCTNL FACS AUTH REVENUE	1/1/2026	6.00		1,024,347		1,196,710
	1,000,000	MARYLAND ST HLTH & HGR EDUCTNL FACS AUTH REVENUE	1/1/2031	6.25		1,017,098		1,189,320
	500,000	MASHANTUCKET WSTRN PEQUOT TRIBE CT(c)(e)(f)	9/1/2036	5.50		509,035		215,045
	1,000,000	MASSACHUSETTS ST DEV FIN AGY REVENUE	7/1/2030	6.38		986,976		1,142,150
	290,000	MASSACHUSETTS ST DEV FIN AGY SENIOR LIVING FAC REVENUE	6/1/2014	6.25		290,000		145,012
	410,000	MASSACHUSETTS ST EDUCTNL FING AUTH	1/1/2027	5.20		410,000		465,461
	2,065,000	MASSACHUSETTS ST EDUCTNL FING AUTH	1/1/2028	5.25		2,068,581		2,316,228
	685,000	MASSACHUSETTS ST HLTH & EDUCTNL FACS AUTH	7/1/2013	7.30		685,000		688,254
	750,000	MASSACHUSETTS ST HSG FIN AGY	12/1/2031	3.50		750,000		769,620
	1,000,000	MASSACHUSETTS ST HSG FIN AGY	12/1/2032	4.05		1,000,000		1,044,910
	830,000	MASSACHUSETTS ST HSG FIN AGY	12/1/2033	5.35		830,000		876,331
	2,000,000	MASSACHUSETTS ST HSG FIN AGY	12/1/2037	3.45		2,000,000		1,960,560
	885,000	MASSACHUSETTS ST HSG FIN AGY	6/1/2040	5.05		885,000		958,234
	500,000	MASSACHUSETTS ST HSG FIN AGY	12/1/2042	3.50		499,376		491,630
	1,750,000	MCALESTER OK PUBLIC WKS AUTH UTILITY SYS REVENUE(b)	2/1/2030	11.04		669,805		671,422
	160,000	MEAD NE TAX INCR REVENUE(e)	7/1/2012	5.13		160,000		72,000
	400,000	MEDITERRA FL S CDD CAPITAL IMPT REVENUE	5/1/2031	5.10		400,000		410,884
	1,000,000	MESQUITE TX HLTH FAC DEV CORP	2/15/2025	5.50		998,167		1,032,000
	1,070,000	MET GOVT NASHVILLE & DAVIDSON CNTY TN HLTH & EDUCTNL FAC BRD(e)	12/20/2020	8.00		1,070,000		502,836
	855,000	MET GOVT NASHVILLE & DAVIDSON CNTY TN HLTH & EDUCTNL FAC BRD(e)	6/20/2036	10.00		855,000		401,799
	1,830,000	MET GOVT NASHVILLE & DAVIDSON CNTY TN HLTH & EDUCTNL FAC BRD(e)	12/20/2040	7.50		1,830,000		1,006,390
	2,000,000	MET WASHINGTON DC ARPTS AUTH DULLES TOLL ROAD REVENUE(b)	10/1/2041	1.80		1,329,475		1,984,940
	500,000	MIAMI-DADE CNTY FL HLTH FACS AUTH HOSP REVENUE	8/1/2030	6.00		486,218		598,055
	1,000,000	MIAMI-DADE CNTY FL SPL OBLG	10/1/2035	5.00		1,114,334		1,121,200

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2012

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	465,000	MICHIGAN ST FIN AUTH LTD OBLGREVENUE	10/1/2021	6.00	$	461,835		506,873
	1,000,000	MICHIGAN ST HOSP FIN AUTH	12/1/2023	6.13		990,174		1,226,570
	2,500,000	MICHIGAN ST HOSP FIN AUTH	11/15/2025	5.25		2,291,321		2,530,950
	1,500,000	MICHIGAN ST HOSP FIN AUTH	6/1/2034	6.13		1,558,280		1,752,645
	625,000	MICHIGAN ST HSG DEV AUTH	10/1/2020	5.38		602,835		702,038
	1,000,000	MICHIGAN ST HSG DEV AUTH	10/1/2034	5.63		1,000,000		1,096,450
	1,000,000	MICHIGAN ST MUNI BOND AUTH	5/1/2023	5.75		1,023,884		1,191,190
	695,000	MICHIGAN ST PUBLIC EDUCTNL FACS AUTH(c)	9/1/2016	6.00		692,537		638,886
	750,000	MICHIGAN ST PUBLIC EDUCTNL FACS AUTH	6/1/2020	6.00		744,423		795,488
	440,000	MICHIGAN ST PUBLIC EDUCTNL FACS AUTH	9/1/2021	8.00		440,000		402,723
	450,000	MICHIGAN ST PUBLIC EDUCTNL FACS AUTH	10/1/2023	6.25		450,000		453,614
	500,000	MICHIGAN ST PUBLIC EDUCTNL FACS AUTH	11/1/2028	6.35		500,000		515,350
	305,000	MICHIGAN ST TOBACCO SETTLEMENT FIN AUTH	6/1/2022	5.13		287,544		282,888
	1,000,000	MIDDLEBURG HEIGHTS OH HOSP REVENUE	8/1/2047	5.00		1,079,414		1,076,450
	496,000	MILLSBORO DE SPL OBLG	7/1/2036	5.45		496,000		386,716
	318,641	MINNESOTA ST HGR EDU FACS AUTH REVENUE	10/1/2016	4.49		319,984		325,670
	425,000	MINNESOTA ST HSG FIN AGY	7/1/2034	5.05		425,000		458,108
	840,000	MINNESOTA ST HSG FIN AGY	1/1/2040	5.10		840,000		904,982
	1,000,000	MINNESOTA ST OFFICE OF HGR EDU REVENUE	11/1/2029	5.00		1,000,000		1,126,760
	1,000,000	MISSISSIPPI ST DEV BANK SPL OBLG	10/1/2031	6.50		973,535		1,220,150
	185,000	MISSISSIPPI ST HOME CORP SF MTGE REVENUE	6/1/2039	6.75		194,710		192,866
	500,000	MISSOURI ST DEV FIN BRD	11/1/2025	5.50		492,739		533,310
	980,000	MISSOURI ST HLTH & EDUCTNL FACS AUTH	2/1/2022	5.13		997,942		1,046,905
	500,000	MISSOURI ST HLTH & EDUCTNL FACS AUTH	2/1/2035	5.38		498,356		532,505
	185,000	MISSOURI ST HSG DEV COMMISSION SF HSG REVENUE	9/1/2034	5.25		183,816		192,574
	305,000	MISSOURI ST HSG DEV COMMISSION SF HSG REVENUE	9/1/2034	5.35		305,000		337,107
	1,000,000	MOBERLY MO INDL DEV AUTH(e)	9/1/2024	6.00		1,016,984		60,010
	1,105,000	MONTANA ST BRD OF HSG	12/1/2039	5.50		1,105,137		1,202,914
	500,000	MONTGOMERY CNTY MD HSG OPPORTUNITIES COMMISSION MF REVENUE	7/1/2037	5.13		500,000		544,160
	2,000,000	MONTGOMERY CNTY MD HSG OPPORTUNITIES COMMISSION SF MTGE REVE(b)	7/1/2028	9.14		881,485		844,600
	1,500,000	MONTGOMERY CNTY OH HLTH CARE FACS REVENUE	9/20/2032	6.55		1,459,491		1,506,180
	650,000	MONTGOMERY CNTY PA INDL DEV AUTH	2/1/2014	5.38		649,155		657,774
	800,000	MOUNT CARBON CO MET DIST REVENUE	6/1/2043	7.00		800,000		488,552
	200,000	MOUNT CARBON CO MET DIST REVENUE(e)	6/1/2043	8.00		-		20,000
	1,500,000	MOUNT VERNON IN SCH BLDG CORP	1/15/2037	5.00		1,532,785		1,589,460
	500,000	MULTNOMAH CNTY OR HOSP FACS AUTH REVENUE	12/1/2029	5.00		540,856		545,645

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2012

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	1,500,000	N SUMTER CNTY UTILITY DEPENDENT DIST FL SOLID WASTE REVENUE	10/1/2032	5.00	$	1,528,893		1,542,930
	500,000	N TX TOLLWAY AUTH DALLAS N TOLLWAY SYS REVENUE	1/1/2025	6.00		500,000		590,225
	1,000,000	N TX TOLLWAY AUTH REVENUE(b)	1/1/2028	10.85		418,027		540,030
	1,000,000	N TX TOLLWAY AUTH REVENUE	1/1/2034	6.00		1,000,000		1,182,310
	1,000,000	N TX TOLLWAY AUTH REVENUE(b)	1/1/2042	1.40		716,257		1,092,110
	1,000,000	NATRONA CNTY WY HOSP REVENUE	9/15/2031	6.35		1,000,000		1,179,020
	235,000	NEVADA ST HSG DIV SF MTGE REVENUE	10/1/2039	5.38		235,000		243,733
	1,025,000	NEVADA ST HSG DIV SF MTGE REVENUE	10/1/2040	5.10		1,025,000		1,106,856
	1,000,000	NEW HAMPSHIRE ST HLTH & ED FACS AUTH HLTHCARE SYS REVENUE	7/1/2042	5.00		1,022,767		1,070,230
	1,000,000	NEW HAMPSHIRE ST HLTH & EDU FACS AUTH HOSP REVENUE	10/1/2024	5.00		987,174		1,023,180
	1,000,000	NEW HAMPSHIRE ST HLTH & EDU FACS AUTH REVENUE	1/1/2034	6.00		969,730		1,148,310
	500,000	NEW HAMPSHIRE ST HLTH & EDU FACS AUTH REVENUE	8/1/2038	6.00		490,374		585,410
	1,000,000	NEW HAMPSHIRE ST HSG FIN AUTH MF REVENUE	7/1/2031	5.20		1,000,000		1,127,980
	745,000	NEW HAMPSHIRE ST HSG FIN AUTH SF REVENUE	7/1/2034	5.38		745,000		818,315
	570,000	NEW HAMPSHIRE ST HSG FIN AUTH SF REVENUE	7/1/2038	6.63		593,533		632,261
	615,000	NEW JERSEY ST ECON DEV AUTH	12/1/2016	5.75		615,000		615,775
	500,000	NEW JERSEY ST HGR EDU ASSISTANCE AUTH	6/1/2024	5.38		497,666		563,445
	555,000	NEW JERSEY ST HGR EDU ASSISTANCE AUTH	6/1/2027	5.00		553,196		585,963
	995,000	NEW JERSEY ST HSG & MTGE FIN AGY	10/1/2030	4.50		995,000		1,085,057
	390,000	NEW JERSEY ST HSG & MTGE FIN AGY	10/1/2030	6.45		412,976		440,969
	755,000	NEW JERSEY ST HSG & MTGE FIN AGY	10/1/2034	5.00		755,000		817,597
	775,000	NEW JERSEY ST HSG & MTGE FIN AGY	10/1/2035	5.00		775,000		835,652
	1,905,000	NEW JERSEY ST HSG & MTGE FIN AGY	10/1/2037	5.00		1,891,510		2,039,493
	1,000,000	NEW JERSEY ST HSG & MTGE FIN AGY MF REVENUE	5/1/2041	4.95		970,286		1,075,440
	395,000	NEW MEXICO ST MTGE FIN AUTH	9/1/2029	4.80		395,000		433,153
	775,000	NEW MEXICO ST MTGE FIN AUTH	9/1/2029	5.00		775,000		852,477
	790,000	NEW MEXICO ST MTGE FIN AUTH	9/1/2034	5.00		790,000		869,253
	755,000	NEW MEXICO ST MTGE FIN AUTH	3/1/2036	5.45		755,000		829,398
	1,000,000	NEW MEXICO ST MTGE FIN AUTH	9/1/2042	3.90		1,000,000		1,023,990
	1,500,000	NEW MEXICO ST MTGE FIN AUTH	9/1/2042	4.13		1,500,000		1,568,115
	750,000	NEW ORLEANS LA SEWAGE SVC REVENUE	6/1/2024	6.00		740,818		874,072
	115,000	NEW RIVER FL CDD CAPITAL IMPT REVENUE(e)	5/1/2013	5.00		114,821		1

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2012

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	70,000	NEW RIVER FL CDD CAPITAL IMPT REVENUE	5/1/2015	5.00	$	66,542		62,569
	135,000	NEW RIVER FL CDD CAPITAL IMPT REVENUE(b)	5/1/2018	1.37		121,599		62,784
	175,000	NEW RIVER FL CDD CAPITAL IMPT REVENUE(b)	5/1/2038	0.80		142,268		75,651
	70,000	NEW RIVER FL CDD CAPITAL IMPT REVENUE	5/1/2038	5.75		63,184		55,131
	1,000,000	NEW YORK CITY NY HSG DEV CORPMF HSG REVENUE	11/1/2037	3.80		1,000,000		1,000,270
	2,500,000	NEW YORK ST HSG FIN AGY REVENUE	11/1/2042	3.80		2,500,000		2,523,425
	5,000,000	NEW YORK ST HSG FIN AGY REVENUE	5/1/2048	4.10		5,000,000		4,972,950
	1,750,000	NEW YORK ST MTGE AGY HOMEOWNER MTGE REVENUE	10/1/2040	4.13		1,750,000		1,832,758
	500,000	NEW YORK ST MTGE AGY HOMEOWNER MTGE REVENUE	10/1/2042	3.75		500,000		506,230
	450,000	NOBLESVILLE IN REDEV AUTH ECON DEV REVENUE	2/1/2031	5.13		446,052		506,696
	1,000,000	NORTH CAROLINA ST MED CARE COMMISSION HLTH CARE FACS REVENUE	10/1/2029	6.38		1,000,000		1,003,970
	1,300,000	NORTH CAROLINA ST MED CARE COMMISSION HLTH CARE FACS REVENUE	10/1/2035	6.63		1,300,000		1,170,117
	2,000,000	NORTH DAKOTA ST HSG FIN AGY	7/1/2032	3.60		2,000,000		2,032,240
	380,000	NORTH DAKOTA ST HSG FIN AGY	7/1/2034	5.35		380,000		398,954
	145,000	NORTH DAKOTA ST HSG FIN AGY	7/1/2039	5.45		145,000		155,478
	1,510,000	NORTH DAKOTA ST HSG FIN AGY	7/1/2040	5.05		1,510,000		1,632,793
	500,000	NTHRN CA GAS AUTH #1 GAS PROJ REVENUE	7/1/2027	0.96		500,000		406,320
	1,000,000	NTHRN IL UNIV	4/1/2026	5.50		1,014,237		1,139,230
	2,000,000	OAK PARK CA UNIF SCH DIST(b)	8/1/2038	3.77		1,027,945		1,520,860
	1,250,000	OAKLAND CNTY MI ECON DEV CORP LTD OBLG REVENUE	12/1/2020	6.50		1,243,079		1,270,750
	520,000	OHIO ST HSG FIN AGY RSDL MTGE REVENUE	9/1/2033	5.40		520,000		572,889
	160,000	OHIO ST HSG FIN AGY RSDL MTGE REVENUE	9/1/2033	5.45		160,000		165,536
	500,000	OKLAHOMA CNTY OK FIN AUTH REVENUE	4/1/2033	5.00		505,509		493,695
	500,000	OKLAHOMA CNTY OK FIN AUTH REVENUE	4/1/2042	5.13		500,000		482,525
	390,000	OKLAHOMA ST HSG FIN AGY SF MTGE REVENUE	3/1/2032	5.15		390,000		428,119
	605,000	OKLAHOMA ST HSG FIN AGY SF MTGE REVENUE	9/1/2038	6.50		630,694		625,903
	435,000	ONEIDA TRIBE OF INDIANS WI RETAIL SALES REVENUE(c)	2/1/2021	5.50		435,000		496,474
	1,000,000	OVERLAND PARK KS TRANSPRTN DEV DIST SALES TAX REVENUE	4/1/2032	5.90		1,000,000		1,121,160
	2,280,000	PACHECO CA UNION SCH DIST COPS(b)	2/1/2037	15.27		526,420		670,046
	1,000,000	PALM BAY FL UTILITY REVENUE(b)	10/1/2031	11.87		335,799		407,860
	1,000,000	PALM BEACH CNTY FL HLTH FACS AUTH REVENUE	11/15/2022	5.38		925,227		1,050,340
	1,665,000	PATTERSON CA JT UNIF SCH DIST(b)	8/1/2027	12.31		650,640		883,865
	750,000	PELL CITY AL SPL CARE FACS FING AUTH REVENUE	12/1/2027	5.25		651,813		907,290
	1,000,000	PELL CITY AL SPL CARE FACS FING AUTH REVENUE	12/1/2039	5.00		1,067,439		1,064,310

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2012

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	500,000	PENNSYLVANIA ST HGR EDUCTNL FACS AUTH REVENUE	7/1/2039	0.89	$	500,000		336,730
	1,000,000	PENNSYLVANIA ST HGR EDUCTNL FACS AUTH REVENUE	5/1/2042	5.38		1,007,635		1,051,230
	500,000	PENNSYLVANIA ST HSG FIN AGY SF MTGE REVENUE	10/1/2025	5.00		501,584		547,655
	1,000,000	PENNSYLVANIA ST HSG FIN AGY SF MTGE REVENUE	10/1/2029	4.63		920,269		1,063,770
	1,000,000	PENNSYLVANIA ST HSG FIN AGY SF MTGE REVENUE	10/1/2034	4.88		1,002,970		1,068,430
	1,000,000	PENNSYLVANIA ST HSG FIN AGY SF MTGE REVENUE	10/1/2037	3.65		1,007,465		988,700
	1,000,000	PENNSYLVANIA ST HSG FIN AGY SF MTGE REVENUE	10/1/2042	3.70		1,000,000		991,570
	1,000,000	PENNSYLVANIA ST TURNPIKE COMMISSION TURNPIKE REVENUE(b)	6/1/2033	2.19		697,300		1,057,150
	1,935,000	PENNSYLVANIA ST TURNPIKE COMMISSION TURNPIKE REVENUE(b)	12/1/2035	1.17		1,529,252		1,818,919
	750,000	PENNSYLVANIA ST TURNPIKE COMMISSION TURNPIKE REVENUE(b)	12/1/2035	2.01		601,819		711,698
	1,500,000	PENNSYLVANIA ST TURNPIKE COMMISSION TURNPIKE REVENUE(b)	12/1/2038	1.44		1,096,739		1,439,880
	2,000,000	PEORIA IL PUBLIC BLDG COMMISSION SCH DIST FACS REVENUE(b)	12/1/2021	8.01		1,222,116		1,431,660
	5,000,000	PEORIA IL PUBLIC BLDG COMMISSION SCH DIST FACS REVENUE(b)	12/1/2026	11.11		2,116,666		2,393,700
	500,000	PHOENIX AZ INDL DEV AUTH EDU REVENUE	7/1/2022	5.00		500,000		497,385
	3,000,000	PHOENIX AZ INDL DEV AUTH LEASE REVENUE	6/1/2034	5.25		3,057,019		3,376,980
	975,000	PIMA CNTY AZ INDL DEV AUTH CHRT SCH REVENUE	4/1/2022	5.88		975,000		1,022,034
	650,000	PIMA CNTY AZ INDL DEV AUTH EDU REVENUE	6/1/2016	6.00		652,755		657,748
	825,000	PIMA CNTY AZ INDL DEV AUTH EDU REVENUE	12/1/2017	5.35		747,608		827,269
	330,000	PIMA CNTY AZ INDL DEV AUTH EDU REVENUE	12/1/2018	6.38		330,000		343,216
	1,985,000	PIMA CNTY AZ INDL DEV AUTH EDU REVENUE	7/1/2021	6.70		1,985,000		1,996,831
	865,000	PIMA CNTY AZ INDL DEV AUTH EDU REVENUE	6/1/2022	5.00		804,228		873,148
	995,000	PIMA CNTY AZ INDL DEV AUTH EDU REVENUE	7/1/2026	5.00		870,255		911,579
	490,000	PIMA CNTY AZ INDL DEV AUTH EDU REVENUE	7/1/2031	6.75		361,857		492,132
	2,625,000	PITTSBURG CALIF UNI SCH DIST FING AUTH REV(b)	9/1/2031	16.03		766,261		809,812
	1,000,000	PUBLIC FIN AUTH WI CCRC REVENUE	6/1/2020	7.00		985,838		1,150,000
	1,500,000	PUBLIC FIN AUTH WI CCRC REVENUE	6/1/2046	8.25		1,564,641		1,805,145
	500,000	PUBLIC FIN AUTH WI EDUCTNL FAC REVENUE	9/1/2022	5.25		500,000		502,975
	1,000,000	PUBLIC FIN AUTH WI REVENUE	4/1/2022	5.00		1,000,000		1,006,550
	600,000	PUBLIC FIN AUTH WI REVENUE	4/1/2032	5.50		600,000		606,012
	221,000	PUBLIC FIN AUTH WI REVENUE(b)	10/1/2042	(0.40)		251,095		109,399

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2012

Par/Shares		Security	Maturity date	Coupon rate		Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	221,000	PUBLIC FIN AUTH WI REVENUE(b)	10/1/2042	(0.40	)	$	251,093		2
	515,000	PUBLIC FIN AUTH WI REVENUE	10/1/2042	7.00			585,639		493,859
	1,000,000	PUERTO RICO CMWLTH	7/1/2028	6.00			989,982		1,057,920
	1,500,000	PUERTO RICO CMWLTH	7/1/2035	5.00			1,500,000		1,497,990
	1,500,000	PUERTO RICO CMWLTH	7/1/2039	5.50			1,527,636		1,487,595
	1,500,000	PUERTO RICO CMWLTH	7/1/2040	6.50			1,524,271		1,597,620
	1,000,000	PUERTO RICO CMWLTH AQUEDUCT & SWR AUTH REVENUE	7/1/2038	6.00			1,047,552		1,002,320
	500,000	PUERTO RICO ELEC PWR AUTH PWR REVENUE	7/1/2025	0.92			500,000		396,130
	1,000,000	PUERTO RICO SALES TAX FING CORP SALES TAX REVENUE(b)	8/1/2033	3.37			599,620		837,690
	500,000	PUERTO RICO SALES TAX FING CORP SALES TAX REVENUE	8/1/2057	1.14			500,000		298,600
	750,000	QUAIL CREEK AZ CMNTY FACS DIST	7/15/2016	5.15			750,000		773,340
	1,260,000	QUECHAN INDIAN TRIBE AZ FORT YUMA INDIAN RESERVATION	5/1/2025	9.75			1,260,000		1,358,293
	2,000,000	RAILSPLITTER IL TOBACCO SETTLEMENT AUTH	6/1/2024	6.25			2,030,578		2,233,200
	500,000	RED RIVER TX HLTH FACS DEV CORP FIRST MTGE REVENUE	1/1/2032	5.50			515,199		522,365
	1,000,000	REDONDO BEACH CA UNIF SCH DIST(b)	8/1/2034	2.10			693,597		1,005,520
	750,000	RENO NV SPARKS INDIAN COLONY	6/1/2021	5.00			765,006		785,482
	500,000	RHODE ISLAND ST HLTH & EDUCTNL BLDG CORP	5/15/2030	6.25			493,705		589,465
	1,000,000	RHODE ISLAND ST HSG & MTGE FIN CORP	10/1/2028	4.00			994,160		1,031,900
	500,000	RICHMOND CA JT PWRS FING AUTH	7/1/2024	6.25			500,000		588,700
	325,000	RICHMOND IN HOSP AUTH REVENUE	1/1/2029	6.50			315,539		380,422
	3,000,000	ROBLA CA SCH DIST(b)	8/1/2036	15.56			718,591		933,930
	500,000	S BAYSIDE CA WST MGMT AUTH SOL WST ENTERPRISE REVENUE	9/1/2029	6.25			513,953		578,845
	1,000,000	S COAST IN CONSERVANCY DIST	1/1/2028	5.25			994,805		1,000,000
	610,000	S WSTRN IL DEV AUTH	10/1/2022	7.00			610,000		634,821
	195,000	S WSTRN IL DEV AUTH	11/1/2026	5.63			193,828		165,502
	1,000,000	SACRAMENTO CA CITY FING AUTH(b)	12/1/2021	7.46			634,354		697,570
	350,000	SACRAMENTO CNTY CA WTR FING AUTH REVENUE	6/1/2039	0.78			350,000		272,506
	845,000	SADDLEBACK VLY CA UNIF SCH DIST PUBLIC FING AUTH	9/1/2017	5.65			845,000		848,456
	1,000,000	SAGINAW MI HOSP FIN AUTH	7/1/2030	5.00			923,109		1,063,580
	172,000	SAINT BERNARD PARISH LA HOME MTGE AUTH SF MTGE	3/1/2039	5.80			168,754		186,830
	500,000	SAINT JOHNS CNTY FL INDL DEV AUTH REVENUE	8/1/2040	5.88			492,944		558,015
	460,000	SAINT JOSEPH CNTY IN ECON DEV REVENUE	5/15/2026	6.00			343,673		477,112
	500,000	SAINT JOSEPH CNTY IN ECON DEV REVENUE	5/15/2038	6.00			370,707		512,190
	1,000,000	SAINT JOSEPH CNTY IN ECON DEV REVENUE	5/15/2039	6.25			1,017,007		1,039,930
	425,694	SAINT JOSEPH CNTY IN HOSP AUTH HLTH FACS REVENUE(e)	2/15/2028	5.25			431,280		51,139
	500,000	SAINT LOUIS CNTY MO INDL DEV AUTH	8/15/2032	5.88			500,000		511,390

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2012

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	750,000	SAINT LOUIS CNTY MO INDL DEV AUTH SENIOR LIVING FACS	9/1/2042	5.00	$	772,764		787,492
	1,000,000	SAINT PETERSBURG FL PUBLIC UTILITIES REVENUE	10/1/2042	4.00		1,000,000		1,001,550
	117,309	SAINT TAMMANY PARISH LA FIN AUTH SF MTGE REVENUE	12/1/2039	5.25		119,913		120,341
	1,000,000	SALEM OR HOSP FAC AUTH REVENUE	5/15/2027	5.75		1,027,270		1,095,870
	2,000,000	SALINE CNTY MO INDL DEV AUTH HLTH FACS REVENUE	12/1/2020	5.00		1,983,881		2,090,220
	500,000	SALINE CNTY MO INDL DEV AUTH HLTH FACS REVENUE	12/1/2028	5.60		489,692		535,580
	500,000	SAN DIEGO CA HSG AUTH MF HSG REVENUE	5/1/2029	5.00		500,000		546,345
	500,000	SAN DIEGO CA REDEV AGY	9/1/2023	5.00		456,396		525,155
	250,000	SAN JOAQUIN HILLS CA TRANSPRTN CORRIDOR AGY	1/15/2030	5.25		250,000		243,678
	500,000	SANTA ANA CA CMNTY REDEV AGY	9/1/2022	6.00		495,463		584,865
	1,000,000	SANTA BARBARA CA UNIF SCH DISTT(b)	8/1/2037	2.57		615,161		656,350
	500,000	SANTA MONICA CA REDEV AGY	7/1/2036	5.88		519,103		593,530
	1,450,000	SARASOTA CNTY FL HLTH FACS AUTH RETMNT FAC REVENUE	1/1/2027	5.50		1,211,225		1,553,791
	500,000	SEMINOLE TRIBE FL SPL OBLG REVENUE(c)	10/1/2024	5.50		503,730		543,610
	500,000	SEVEN OAKS FL CMNTY DEV DIST SPL ASSMNT REVENUE	5/1/2033	5.50		488,039		536,550
	150,000	SHELBY CNTY TN HLTH EDUCTNL & HSG FACS BRD REVENUE(e)	1/1/2019	5.35		134,966		15,000
	625,000	SHELBY CNTY TN HLTH EDUCTNL & HSG FACS BRD REVENUE(e)	1/1/2029	5.55		556,862		62,500
	515,000	SOUTH CAROLINA ST EDU ASSISTANCE AUTH	10/1/2029	5.10		509,264		570,656
	220,000	SOUTH CAROLINA ST HSG FIN & DEV AUTH MTGE REVENUE	7/1/2032	5.50		220,000		241,078
	1,500,000	SOUTH CAROLINA ST JOBS-ECON DEV AUTH ECON DEV REVENUE	11/15/2030	5.63		1,434,764		1,505,250
	356,475	SOUTH CAROLINA ST JOBS-ECON DEV AUTH REVENUE	11/15/2032	6.00		359,390		268,607
	228,572	SOUTH CAROLINA ST JOBS-ECON DEV AUTH REVENUE(b)	11/15/2047	0.04		225,000		8,608
	152,775	SOUTH CAROLINA ST JOBS-ECON DEV AUTH REVENUE(b)	11/15/2047	0.15		145,042		773
	533,336	SOUTH CAROLINA ST JOBS-ECON DEV AUTH REVENUE	11/15/2047	6.00		525,169		373,687
	338,000	SOUTHSIDE AZ CMNTY FACS DIST #1 SPL ASSMNT REVENUE PRESCOTT	7/1/2018	6.13		253,417		258,036
	1,000,000	SPARKS NV REDEV AGY TAX INCR REVENUE	6/1/2020	7.25		991,541		1,060,430
	1,000,000	SPARKS NV REDEV AGY TAX INCR REVENUE	1/15/2022	5.00		980,723		1,056,770
	1,000,000	SPRINGFIELD IL ELEC REVENUE	3/1/2035	5.00		1,041,446		1,039,370
	2,500,000	SULPHUR SPRINGS CA UNION SCH DIST COPS(b)	12/1/2037	1.37		1,875,127		2,607,900
	500,000	TALLAHASSEE FL HLTH FACS REVENUE	12/1/2030	6.38		491,474		508,455

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

CLEARWATER INVESTMENT TRUST

Schedule of Investments - Clearwater Tax-Exempt Bond Fund

December 31, 2012

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	915,000	TARRANT CNTY TX CULTURAL EDU FACS FIN CORP RETMNT FAC REVENU	2/15/2016	7.25	$	915,000		917,443
	750,000	TARRANT CNTY TX CULTURAL EDU FACS FIN CORP RETMNT FAC REVENU	11/15/2019	7.75		750,000		865,582
	1,000,000	TARRANT CNTY TX CULTURAL EDU FACS FIN CORP RETMNT FAC REVENU	11/15/2026	6.00		1,023,449		1,068,810
	1,000,000	TARRANT CNTY TX CULTURAL EDU FACS FIN CORP RETMNT FAC REVENU	5/15/2027	5.13		732,856		1,023,310
	750,000	TARRANT CNTY TX CULTURAL EDU FACS FIN CORP RETMNT FAC REVENU	11/15/2036	6.00		765,183		797,468
	1,150,000	TENNESSEE ST HSG DEV AGY	1/1/2031	3.30		1,150,000		1,167,940
	710,000	TENNESSEE ST HSG DEV AGY	7/1/2038	5.45		710,000		749,277
	2,000,000	TENNESSEE ST HSG DEV AGY	7/1/2043	3.80		2,000,000		2,013,660
	155,000	TENNESSEE ST HSG DEV AGY MTGE FIN	7/1/2023	5.20		155,197		156,757
	580,000	TEXAS ST DEPT OF HSG & CMNTY AFFAIRS	7/1/2039	5.45		580,000		634,821
	250,000	TEXAS ST MUNI GAS ACQUISITION & SPLY CORP I GAS SPLY REVENUE	12/15/2026	1.71		250,000		203,505
	2,000,000	TEXAS ST PRIV ACTIVITY BOND SURFACE TRANSPRTN CORP REVENUE	6/30/2033	7.50		2,051,671		2,526,740
	800,000	TEXAS ST STUDENT HSG AUTH REVENUE(e)	1/1/2033	11.00		800,000		8
	360,257	TODD CREEK FARMS CO MET DIST #1 WTR & WSTWTR REVENUE(d)(e)	12/1/2009	4.75		356,355		180,129
	300,000	TOLOMATO FL CDD	5/1/2017	6.38		300,000		141,381
	115,000	TOLOMATO FL CDD	5/1/2017	6.38		115,000		111,918
	100,000	TOLOMATO FL CDD	5/1/2017	6.38		100,000		1
	10,000	TOLOMATO FL CDD	5/1/2017	6.38		10,000		5,507
	35,000	TOLOMATO FL CDD(b)	5/1/2039	2.21		22,030		25,118
	90,000	TOLOMATO FL CDD(b)	5/1/2040	2.13		56,642		51,854
	50,000	TOLOMATO FL CDD(b)	5/1/2040	2.13		31,468		21,192
	2,000,000	TORRANCE CA UNIF SCH DIST(b)	8/1/2023	9.54		1,048,155		1,369,220
	1,000,000	TRACY CA JT UNIF SCH DIST(b)	8/1/2041	4.95		427,421		504,040
	1,000,000	TRAVIS CNTY TX HLTH FACS DEV CORP	11/1/2016	6.25		1,000,000		1,026,920
	1,000,000	TRAVIS CNTY TX HLTH FACS DEV CORP	1/1/2017	5.50		982,393		1,000,590
	1,000,000	TRAVIS CNTY TX HLTH FACS DEV CORP	1/1/2022	6.00		990,584		1,042,520
	840,000	TRAVIS CNTY TX HSG FIN CORP(e)	6/1/2035	9.25		840,000		41,966
	500,000	TURLOCK CA PUBLIC FING AUTH WTR REVENUE	5/1/2032	4.75		523,974		537,955
	1,250,000	TUSTIN CA UNIF SCH DIST(b)	8/1/2028	4.10		775,704		975,925
	1,250,000	UPLAND CA COPS	1/1/2032	6.38		1,216,419		1,477,825
	671,000	UTAH ASSOC MUNI POWER(d)	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		634,110
	500,000	UTAH ST CHRT SCH FIN AUTH CHRT SCH REVENUE	7/15/2020	5.75		469,587		537,260
	500,000	UTAH ST CHRT SCH FIN AUTH CHRT SCH REVENUE	7/15/2025	6.50		500,000		554,895
	1,000,000	UTAH ST HSG CORP MTGE REVENUE	7/1/2030	4.10		1,000,000		1,069,000
	480,000	UTAH ST HSG CORP SF MTGE REVENUE	1/1/2032	4.95		480,000		523,502
	730,000	UTAH ST HSG CORP SF MTGE REVENUE	1/1/2033	5.75		730,000		832,273
	500,000	VANCOUVER WA HSG AUTH	3/1/2025	5.00		493,258		541,060

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

CLEARWATER INVESTMENT TRUST

Schedule of Investments - Clearwater Tax-Exempt Bond Fund

December 31, 2012

Par/Shares		Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	1,240,000	VERMONT ST EDUCTNL & HLTH BLDGS FING AGY	12/1/2027	6.13		$1,223,721		1,244,451
	1,000,000	VERMONT ST HSG FIN AGY MULTI FAMILY	8/15/2041	3.80		982,801		977,750
	1,000,000	VIRGIN ISLANDS PUBLIC FIN AUTH REVENUE	10/1/2042	5.00		1,042,962		1,046,280
	750,000	VIRGINIA ST HSG DEV AUTH	12/1/2038	4.60		746,327		804,233
	1,000,000	VIRGINIA ST HSG DEV AUTH	12/1/2039	5.00		1,000,000		1,083,120
	695,000	VIRGINIA ST HSG DEV AUTH CMWLTH MTGE	7/1/2025	6.00		695,000		793,933
	945,000	VIRGINIA ST HSG DEV AUTH CMWLTH MTGE	7/1/2031	6.25		962,465		1,086,731
	1,000,000	W CAMPUS HSG LLC AZ STUDENT HSG REVENUE	7/1/2025	5.00		888,658		1,013,350
	230,000	W VLGS FL IMPT DIST(e)	5/1/2037	5.50		230,000		102,916
	1,000,000	WASHINGTON ST HLTH CARE FACS AUTH	3/1/2029	7.13		976,532		1,224,500
	500,000	WASHINGTON ST HSG FIN COMMISSION	10/1/2017	5.00		500,000		500,800
	1,500,000	WASHINGTON ST HSG FIN COMMISSION	10/1/2022	6.00		1,500,000		1,506,420
	1,000,000	WASHINGTON ST HSG FIN COMMISSION	7/15/2029	4.75		1,000,000		1,108,690
	1,500,000	WASHINGTON ST HSG FIN COMMISSION	7/1/2030	3.50		1,500,000		1,530,435
	1,150,000	WASHINGTON ST HSG FIN COMMISSION NONPROFIT REVENUE	1/1/2017	5.25		1,147,906		1,177,450
	500,000	WATERLOO IA CMNTY SCH DIST SCH INFRASTRUCTURE SALES & SVCS T	7/1/2029	5.00		500,000		545,390
	70,000	WATERS EDGE FL CDD CAPITAL IMPT REVENUE(d)(e)	11/1/2012	5.00		70,000		1
	445,000	WATERS EDGE FL CDD CAPITAL IMPT REVENUE(b)	5/1/2039	1.14		353,805		209,270
	6,000	WATERS EDGE FL CDD CAPITAL IMPT REVENUE	5/1/2039	5.35		9,500		6,041
	750,000	WAYZATA MN SENIOR HSG REVENUE	11/1/2025	5.20		738,269		783,135
	1,000,000	WEST TRAVIS CNTY TX PUBLIC UTILITY AGY REVENUE	8/15/2024	5.00		1,020,934		1,023,090
	1,000,000	WISCONSIN ST GEN FUND ANNUAL APPROP REVENUE	5/1/2027	6.00		1,018,384		1,229,450
	400,000	WISCONSIN ST HLTH & EDUCTNL FACS AUTH REVENUE	8/15/2023	5.60		400,327		405,056
	1,000,000	WISCONSIN ST HLTH & EDUCTNL FACS AUTH REVENUE	7/1/2030	5.75		1,023,158		1,136,700
	750,000	WISCONSIN ST HLTH & EDUCTNL FACS AUTH REVENUE	4/15/2033	6.40		751,862		756,382
	500,000	WISCONSIN ST HLTH & EDUCTNL FACS AUTH REVENUE	8/15/2034	6.75		503,364		513,670
	1,000,000	WISCONSIN ST HLTH &
		EDUCTNL FACS AUTH
		REVENUE	12/1/2034	6.31		1,000,000		550,110
	500,000	WISCONSIN ST HLTH & EDUCTNL FACS AUTH REVENUE	2/15/2040	5.00		513,792		539,465
	295,000	WSTRN GENERATION AGY OR COGENERATION PROJ REVENUE	1/1/2021	5.00		295,836		296,080
	500,000	WYOMING CMNTY DEV AUTH STUDENTHSG REV	7/1/2031	6.25		500,000		564,250

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

CLEARWATER INVESTMENT TRUST

Schedule of Investments - Clearwater Tax-Exempt Bond Fund

December 31, 2012

Par/Shares			Security	Maturity date	Coupon rate	Cost		Fair value(a)		Percent of net assets
Municipal Bonds (Cont’d):
	355,000		ZEPHYR RIDGE FL CDD CAPITAL IMPT REVENUE(e)	5/1/2013	5.25	$	355,352		141,400
		Sub-total Municipal Bonds:					453,457,942		474,392,857		90.00	%
Short-Term Investments:
	18,121,788		NORTHERN INSTITUTIONAL FUNDS - TAX-EXEMPT PORTFOLIO, 0.01%(g)				18,121,788		18,121,788
		Sub-total Short-Term Investments:					18,121,788		18,121,788		3.44	%
			Grand total(h)			$	499,059,091		525,833,879		99.76	%

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 traded 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)	This security is being fair valued according to procedures adopted by the Board of Trustees.
(e)	Currently non-income producing assets. For long-term debt securities, item identified is in default as to payment of interest and/or principal.
(f)	Restricted security that has been deemed illiquid. At December 31, 2012, the value of these restricted illiquid securities amounted to approximately $289,470 or 0.05% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE		ACQUISITION COST
ILLINOIS ST FIN AUTH SPORTS FAC REVENUE, 6.13%, 10/1/27		9/28/07	$	728,963
ILLINOIS ST FIN AUTH SPORTS FAC REVENUE, 6.25%, 10/1/37		9/28/07		483,580
MASHANTUCKET WSTRN PEQUOT TRIBE CT, 5.50%, 9/1/36		7/19/06		509,675

(g) The short-term investment is a money market portfolio of the investment company, Northern Institutional Funds.

At December 31, 2011, the value of the Clearwater Tax-Exempt Bond Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $11,769,850 with net purchases of approximately $6,351,938 during the fiscal year ended December 31, 2012.

(h) At December 31, 2012, the cost for Federal income tax purposes was $499,059,091. The aggregate gross unrealized appreciation and depreciation of investments in securities based on this cost were as follows:

Gross unrealized appreciation	$	45,430,055
Gross unrealized depreciation		(18,655,267	)
Net unrealized appreciation	$	26,774,788

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2012

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

Geographical Diversification	Percent
California		11.44	%
Illinois		8.65
Texas		7.10
Ohio		6.59
Florida		5.61
Indiana		4.53
Arizona		3.60
Pennsylvania		3.53
New Jersey		3.30
New York		3.12
Other		42.53
		100.00	%

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments – Clearwater Tax-Exempt Bond Fund
December 31, 2012

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
Common Stocks:
Argentina:
	144,099	ARCOS DORADOS HOLDINGS, INC., CLASS A	$	2,073,729		1,723,424
				2,073,729		1,723,424		0.42	%
Australia:
	9,284	AGL ENERGY LTD.		105,943		149,089
	51,722	ALUMINA LTD.		50,177		50,014
	36,255	AMP LTD.		95,058		184,281
	10,115	APA GROUP		50,066		58,387
	11,099	ASCIANO LTD.		49,426		54,242
	4,593	ASX LTD.		114,203		149,845
	25,843	AURIZON HOLDINGS LTD.		91,220		101,496
	50,341	AUSTRALIA & NEW ZEALAND BANKING GROUP LTD.		712,399		1,317,973
	6,281	BENDIGO AND ADELAIDE BANK LTD.		52,780		56,005
	179,910	BGP HOLDINGS PLC - (FRACTIONAL SHARES)(b)		-		-
	60,332	BHP BILLITON LTD.		1,453,162		2,356,152
	10,199	BORAL LTD.		28,970		46,913
	38,613	BRAMBLES LTD.		218,269		307,287
	373,378	CARDNO LTD.		2,900,058		2,732,485
	25,256	CENTRO RETAIL AUSTRALIA		52,870		59,796
	40,505	CFS RETAIL PROPERTY TRUST GROUP		46,791		81,160
	10,606	COCA-COLA AMATIL LTD.		91,642		149,114
	971	COCHLEAR LTD.		35,893		80,330
	23,113	COMMONWEALTH BANK OF AUSTRALIA		959,865		1,501,361
	1,113	COMPUTERSHARE LTD.		5,565		10,481
	263,286	CREDIT CORP. GROUP LTD.		2,069,632		2,222,980
	9,576	CSL LTD.		226,091		540,968
	389,188	DECMIL GROUP LTD.		1,106,503		1,043,577
	85,105	DEXUS PROPERTY GROUP		62,970		90,237
	8,477	ECHO ENTERTAINMENT GROUP LTD.		19,848		30,566
	373,064	EMECO HOLDINGS LTD.		283,607		236,974
	21,110	FORTESCUE METALS GROUP LTD.		37,574		104,734
	18,737	GOODMAN GROUP		48,414		85,242
	29,308	ILUKA RESOURCES LTD.		316,664		284,017
	36,603	INCITEC PIVOT LTD.		83,901		124,385
	47,825	INSURANCE AUSTRALIA GROUP LTD.		120,292		235,200
	2,773	LEIGHTON HOLDINGS LTD.		49,627		52,172
	10,015	LEND LEASE GROUP		61,130		97,571
	9,837	MACQUARIE GROUP LTD.		195,127		365,843
	13,956	METCASH LTD.		38,758		48,601
	37,974	MIRVAC GROUP		50,570		59,176
	54,636	MONADELPHOUS GROUP LTD.		1,186,679		1,401,345
	39,852	NATIONAL AUSTRALIA BANK LTD.		675,928		1,042,241
	9,984	NEWCREST MINING LTD.		240,151		233,096
	3,475	ORICA LTD.		85,253		91,380
	12,164	ORIGIN ENERGY LTD.		125,371		148,859
	6,634	OZ MINERALS LTD.		49,799		47,237
	453,290	PACIFIC BRANDS LTD.		263,126		295,741
	416	PERPETUAL LTD.		7,027		15,149
	36,732	QANTAS AIRWAYS LTD.(b)		46,697		57,754
	3,611	QBE INSURANCE GROUP LTD.		49,104		41,330
	2,468	RAMSAY HEALTH CARE LTD.		49,765		70,117
	7,202	RIO TINTO LTD.		402,208		501,288
	118,297	SAI GLOBAL LTD.		492,324		527,002
	22,469	SANTOS LTD.		244,511		263,146
	4,898	SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP(b)		7,202		7,629
	1,033,482	SLATER & GORDON LTD.		2,130,929		2,274,782
	9,824	SONIC HEALTHCARE LTD.		79,849		137,182
	11,895	SUNCORP GROUP LTD.		126,410		126,467
	8,477	TABCORP HOLDINGS LTD.		15,377		27,091	��
	8,846	TATTS GROUP LTD.		14,773		27,852
	54,293	TELSTRA CORP. LTD.		225,744		247,332
	22,161	TOLL HOLDINGS LTD.		98,848		106,090
	21,881	TRANSURBAN GROUP		88,365		138,969
	219,954	WEBJET LTD.		932,875		996,603
	11,197	WESFARMERS LTD.		408,869		432,074
	42,659	WESTFIELD GROUP		253,085		470,716
	35,413	WESTFIELD RETAIL TRUST		53,180		111,455

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
Australia (Cont’d):
	60,789	WESTPAC BANKING CORP.	$	872,864		1,661,875
	32,555	WHITEHAVEN COAL LTD.		99,446		120,381
	13,603	WOODSIDE PETROLEUM LTD.		455,825		484,803
	22,832	WOOLWORTHS LTD.		435,292		697,840
	3,542	WORLEYPARSONS LTD.		57,010		87,378
				22,158,951		27,960,858		6.85	%
Austria:
	26,945	ANDRITZ A.G.		1,622,111		1,731,167
	3,566	ERSTE GROUP BANK A.G.(b)		63,770		114,025
	33,719	IMMOFINANZ A.G.		94,190		142,154
	3,309	RAIFFEISEN BANK INTERNATIONAL A.G.		106,621		138,319
	313	STRABAG S.E. (BEARER)		5,505		8,442
	19,070	TELEKOM AUSTRIA A.G.		124,529		144,308
	27,600	WIENERBERGER A.G.		213,061		254,263
				2,229,787		2,532,678		0.62	%
Bahamas:
	16,410	STEINER LEISURE LTD.(b)		777,562		790,798
				777,562		790,798		0.19	%
Belgium:
	9,207	AGEAS		155,603		274,697
	13,822	ANHEUSER-BUSCH INBEV N.V.		502,521		1,207,885
	10,910	BARCO N.V.		740,520		785,581
	1,645	COLRUYT S.A.		74,892		81,676
	13,233	GROUPE BRUXELLES LAMBERT S.A.		1,093,923		1,043,213
	4,347	KBC GROEP N.V.		101,356		151,309
	415	SOLVAY S.A.		57,004		59,740
	1,066	TELENET GROUP HOLDING N.V.		50,357		49,531
	1,091	UCB S.A.		30,548		62,764
	1,457	UMICORE S.A.		72,577		80,340
				2,879,301		3,796,736		0.93	%
Bermuda:
	52,194	LAZARD LTD., CLASS A		1,503,652		1,557,469
				1,503,652		1,557,469		0.38	%
Brazil:
	77,661	BRASIL FOODS S.A. ADR(c)		1,438,817		1,639,424
	13,600	CIA DE SANEAMENTO DE MINAS GERAIS-COPASA		328,620		290,598
	5,900	LOJAS RENNER S.A.		217,003		229,805
				1,984,440		2,159,827		0.53	%
Canada:
	29,100	AGF MANAGEMENT LTD., CLASS B		309,797		290,210
	1,935	AGNICO-EAGLE MINES LTD.		87,643		101,409
	3,934	AGRIUM, INC.		176,472		392,095
	4,900	ARC RESOURCES LTD.		108,943		120,394
	44,600	ATS AUTOMATION TOOLING SYSTEMS, INC.(b)		401,190		394,123
	4,909	BANK OF MONTREAL		286,742		300,354
	12,806	BANK OF NOVA SCOTIA		606,324		739,753
	14,377	BARRICK GOLD CORP.		469,761		503,274
	3,479	BAYTEX ENERGY CORP.		151,408		149,939
	3,700	BCE, INC.		156,653		158,571
	1,900	BELL ALIANT, INC.		51,733		50,274
	3,100	BONAVISTA ENERGY CORP.		50,156		46,187
	13,183	BROOKFIELD ASSET MANAGEMENT, INC., CLASS A		220,688		482,948
	11,740	CAE, INC.		85,345		118,852
	11,081	CAMECO CORP.		198,977		218,233
	46,300	CANACCORD FINANCIAL, INC.		237,982		311,863
	6,440	CANADIAN IMPERIAL BANK OF COMMERCE		260,643		517,751
	21,692	CANADIAN NATIONAL RAILWAY CO.		1,910,278		1,974,189
	9,614	CANADIAN NATIONAL RAILWAY CO.		389,611		873,060
	19,866	CANADIAN NATURAL RESOURCES LTD.		433,114		571,994
	4,722	CANADIAN OIL SANDS LTD.		97,388		95,750
	4,295	CANADIAN PACIFIC RAILWAY LTD.		154,434		435,675
	9,003	CENOVUS ENERGY, INC.		271,843		301,307
	5,200	CENTERRA GOLD, INC.		48,907		48,670
	10,919	CGI GROUP, INC., CLASS A(b)		90,696		251,816

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

CLEARWATER INVESTMENT TRUST

Schedule of Investments - Clearwater International Fund

December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
	Canada (Cont’d):
	3,131	CRESCENT POINT ENERGY CORP.	$	89,474		118,416
	21,200	DOREL INDUSTRIES, INC., CLASS B		765,777		766,201
	15,478	ELDORADO GOLD CORP.		198,459		199,174
	3,700	ENBRIDGE, INC.		145,943		160,022
	9,252	ENCANA CORP.		190,539		182,864
	29,700	ENERFLEX LTD.		343,284		357,702
	32,600	ENSIGN ENERGY SERVICES, INC.		509,675		503,732
	211	FAIRFAX FINANCIAL HOLDINGS LTD.		52,589		76,057
	2,200	FINNING INTERNATIONAL, INC.		51,485		54,342
	5,096	FIRST QUANTUM MINERALS LTD.		98,955		112,248
	3,100	FORTIS, INC.		105,357		106,647
	1,983	FRANCO-NEVADA CORP.		94,697		113,195
	22,700	GENWORTH MI CANADA, INC.		467,217		515,525
	3,052	GILDAN ACTIVEWEAR, INC.		33,435		111,470
	12,908	GOLDCORP, INC.		410,214		474,561
	2,200	GREAT-WEST LIFECO, INC.		49,273		53,855
	32,751	HOME CAPITAL GROUP, INC.		1,650,550		1,944,910
	62,500	HUDBAY MINERALS, INC.		596,862		629,587
	8,953	HUSKY ENERGY, INC.		227,518		264,621
	4,003	IAMGOLD CORP.		28,201		45,837
	2,500	IGM FINANCIAL, INC.		100,363		104,554
	304	IMPERIAL OIL LTD.		9,319		13,059
	1,100	INMET MINING CORP.		53,339		81,845
	800	INTACT FINANCIAL CORP.		49,979		52,092
	11,900	KINROSS GOLD CORP.		98,714		115,566
	1,500	LOBLAW COS. LTD.		53,150		63,230
	4,738	MAGNA INTERNATIONAL, INC.		61,549		236,638
	34,374	MANULIFE FINANCIAL CORP.		420,235		466,867
	3,469	METHANEX CORP.		31,828		110,483
	1,000	METRO, INC.		54,328		63,667
	26,100	MULLEN GROUP LTD.		594,865		548,396
	2,810	NATIONAL BANK OF CANADA		214,109		218,201
	4,300	NEW GOLD, INC.(b)		41,682		47,595
	10,281	NEXEN, INC.		165,994		274,622
	2,600	ONEX CORP.		105,376		109,442
	1,641	OPEN TEXT CORP.(b)		72,477		91,775
	10,000	OSISKO MINING CORP.(b)		81,325		80,426
	4,753	PAN AMERICAN SILVER CORP.		88,411		89,068
	6,322	PEMBINA PIPELINE CORP.		85,382		180,883
	19,434	PENGROWTH ENERGY CORP.		99,676		96,711
	7,900	PENN WEST PETROLEUM LTD.		85,291		85,775
	50,391	POTASH CORP. OF SASKATCHEWAN, INC.		2,044,957		2,050,410
	14,521	POTASH CORP. OF SASKATCHEWAN, INC.		406,729		590,942
	4,200	POWER CORP. OF CANADA		105,623		107,164
	1,900	POWER FINANCIAL CORP.		52,279		52,032
	7,700	RESEARCH IN MOTION LTD.(b)		85,461		91,344
	2,701	RITCHIE BROS AUCTIONEERS, INC.		50,064		56,344
	11,804	ROGERS COMMUNICATIONS, INC., CLASS B		297,723		535,909
	28,202	ROYAL BANK OF CANADA		984,939		1,697,734
	2,400	SAPUTO, INC.		103,951		121,387
	9,661	SHAW COMMUNICATIONS, INC., CLASS B		153,543		221,833
	3,394	SHOPPERS DRUG MART CORP.		145,104		146,037
	2,600	SILVER WHEATON CORP.		100,384		93,733
	2,700	SNC-LAVALIN GROUP, INC.		100,003		109,444
	13,665	SUN LIFE FINANCIAL, INC.		280,304		362,266
	30,795	SUNCOR ENERGY, INC.		760,915		1,012,672
	24,791	TALISMAN ENERGY, INC.		289,882		280,385
	7,378	TECK RESOURCES LTD., CLASS B		246,013		268,136
	800	TELUS CORP.		49,597		52,357
	2,274	TELUS CORP. (NON VOTING)		59,716		147,866
	4,489	TIM HORTONS, INC.		137,057		220,366
	18,042	TORONTO-DOMINION BANK (THE)		792,660		1,519,069
	1,800	TOURMALINE OIL CORP.(b)		51,783		56,514
	8,260	TRANSALTA CORP.		129,937		125,557
	3,885	TRANSCANADA CORP.		129,654		183,646
	32,500	TRICAN WELL SERVICE LTD.		422,140		428,672
	3,842	VALEANT PHARMACEUTICALS INTERNATIONAL, INC.(b)		223,633		229,199
	2,256	VERMILION ENERGY, INC.		83,841		117,869

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

CLEARWATER INVESTMENT TRUST

Schedule of Investments - Clearwater International Fund

December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
	Canada (Cont’d):
	19,653	YAMANA GOLD, INC.	$	186,540		338,055
				24,408,056		30,587,494		7.50	%
	China:
	178,500	AAC TECHNOLOGIES HOLDINGS, INC.		619,927		631,161
	636,000	ANHUI EXPRESSWAY CO. LTD., CLASS H		320,679		362,221
	4,064	BAIDU, INC. ADR(b)(c)		384,505		407,579
	1,038,000	CHINA MEDICAL SYSTEM HOLDINGS LTD.		593,937		805,464
	1,532,000	KINGDEE INTERNATIONAL SOFTWARE GROUP CO. LTD.(b)		310,518		290,912
	884,000	SHANDONG WEIGAO GROUP MEDICAL POLYMER CO. LTD., CLASS H		1,220,778		883,237
	33,000	TENCENT HOLDINGS LTD.		1,177,595		1,073,982
	728,000	WANT WANT CHINA HOLDINGS LTD.		1,075,498		1,014,232
				5,703,437		5,468,788		1.34	%
	Denmark:
	10	A.P. MOELLER - MAERSK A/S, CLASS A		46,408		71,213
	24	A.P. MOELLER - MAERSK A/S, CLASS B		125,436		183,707
	11,397	CARLSBERG A/S, CLASS B		896,574		1,120,491
	1,500	COLOPLAST A/S, CLASS B		27,666		73,516
	13,100	DANSKE BANK A/S(b)		138,182		222,706
	200	FLSMIDTH & CO. A/S		6,013		11,684
	13,065	NOVO NORDISK A/S ADR(c)		2,212,191		2,132,339
	5,916	NOVO NORDISK A/S, CLASS B		502,317		966,200
	81,797	NOVOZYMES A/S, CLASS B		2,278,298		2,314,900
	10,488	PANDORA A/S		73,214		231,101
	15,973	TDC A/S		107,272		113,196
	325	TOPDANMARK A/S(b)		33,362		69,727
				6,446,933		7,510,780		1.84	%
	Finland:
	64,170	AMER SPORTS OYJ		823,361		958,581
	2,638	ELISA OYJ		55,816		58,949
	4,509	FORTUM OYJ		87,100		84,794
	57,270	HUHTAMAKI OYJ		944,354		929,249
	1,396	KESKO OYJ, CLASS B		30,705		45,758
	2,451	KONE OYJ, CLASS B		86,493		181,490
	1,849	METSO OYJ		62,227		80,548
	11,359	NESTE OIL OYJ		110,935		148,102
	61,900	NOKIA OYJ		203,584		243,428
	2,240	NOKIAN RENKAAT OYJ		31,307		90,135
	10,565	POHJOLA BANK PLC, CLASS A		85,425		157,767
	15,829	STORA ENSO OYJ, CLASS R		75,698		111,956
	11,934	UPM-KYMMENE OYJ		99,928		141,818
	2,352	WARTSILA OYJ ABP		56,960		104,028
				2,753,893		3,336,603		0.82	%
	France:
	2,714	ACCOR S.A.		79,810		97,353
	3,200	AIR FRANCE-KLM(b)		22,485		30,446
	3,721	AIR LIQUIDE S.A.		453,907		466,303
	4,036	ALSTOM S.A.		142,736		165,383
	1,165	ARKEMA S.A.		98,308		122,493
	30,343	AXA S.A.		403,058		548,843
	16,306	BNP PARIBAS S.A.		672,088		919,122
	3,068	CAP GEMINI S.A.		111,960		133,703
	12,351	CARREFOUR S.A.		296,772		319,835
	2,177	CASINO GUICHARD PERRACHON S.A.		172,738		209,415
	994	CHRISTIAN DIOR S.A.		84,311		171,848
	8,977	CIE DE ST-GOBAIN		309,749		384,113
	2,998	CIE GENERALE DE GEOPHYSIQUE - VERITAS(b)		87,186		90,356
	3,404	CIE GENERALE DES ETABLISSEMENTS MICHELIN		180,725		322,709
	1,900	CIE GENERALE D’OPTIQUE ESSILOR INTERNATIONAL S.A.		189,479		192,642
	16,517	CREDIT AGRICOLE S.A.(b)		122,492		134,103
	11,712	DANONE S.A.		612,831		773,807
	3,633	EDENRED		65,572		112,976
	14,107	ELECTRICITE DE FRANCE S.A.		261,183		264,397

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

CLEARWATER INVESTMENT TRUST

Schedule of Investments - Clearwater International Fund

December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
	France (Cont’d):
	1,612	EURAZEO	$	53,525		78,203
	6,181	EUROPEAN AERONAUTIC DEFENCE AND SPACE
		CO. N.V.		78,384		242,254
	1,636	EUTELSAT COMMUNICATIONS S.A.		49,913		54,321
	564	GECINA S.A.		51,331		62,948
	6,795	GROUPE EUROTUNNEL S.A. (REGISTERED)		51,329		52,466
	304	ILIAD S.A.		29,549		52,329
	14,770	IPSOS		469,780		550,543
	2,335	KLEPIERRE		57,367		94,114
	4,713	LAFARGE S.A.		166,939		302,000
	1,212	LAGARDERE S.C.A.		30,640		41,153
	4,882	LEGRAND S.A.		111,114		206,054
	23,981	L’OREAL S.A.		2,935,661		3,349,908
	11,662	LVMH MOET HENNESSY LOUIS VUITTON S.A.		1,567,288		2,173,179
	15,891	NATIXIS		55,209		54,977
	3,500	PERNOD-RICARD S.A.		239,500		411,554
	948	PPR		172,811		176,691
	14,352	PUBLICIS GROUPE S.A.		450,675		859,910
	5,954	RENAULT S.A.		173,471		328,493
	2,397	SAFRAN S.A.		103,557		104,594
	18,127	SANOFI		1,018,143		1,719,077
	11,344	SCHNEIDER ELECTRIC S.A.		504,223		846,075
	1,813	SCOR S.E.		36,441		48,886
	5,515	SES S.A.		114,220		159,542
	468	SOCIETE BIC S.A.		50,420		55,868
	12,879	SOCIETE GENERALE S.A.(b)		453,713		484,433
	41,523	SOCIETE TELEVISION FRANCAISE 1		390,640		492,896
	4,172	SODEXO		221,116		349,595
	13,444	SODEXO PRIME FIDELITE		721,006		1,130,737
	673	TECHNIP S.A.		59,257		77,482
	6,700	TELEPERFORMANCE S.A.		205,373		242,819
	59,569	TOTAL S.A.		3,085,810		3,083,143
	1,808	UNIBAIL-RODAMCO S.E.		228,178		442,610
	2,466	VALLOUREC S.A.		112,671		128,692
	24,299	VEOLIA ENVIRONNEMENT S.A.		258,576		296,201
	7,810	VINCI S.A.		316,569		371,696
	20,807	VIVENDI S.A.		406,810		468,566
	1,345	WENDEL S.A.		91,561		139,244
	480	ZODIAC AEROSPACE		50,096		53,608
				19,540,256		25,246,708		6.19	%
	Germany:
	3,492	ADIDAS A.G.		145,098		311,201
	8,718	ALLIANZ S.E. (REGISTERED)		780,413		1,207,762
	17,269	BASF S.E.		720,825		1,623,135
	15,596	BAYER A.G. (REGISTERED)		850,530		1,481,035
	3,195	BAYERISCHE MOTOREN WERKE A.G.		287,107		308,132
	1,591	BEIERSDORF A.G.		86,858		130,000
	435	BRENNTAG A.G.		47,835		57,149
	7,652	CELESIO A.G.		109,250		131,780
	102,069	COMMERZBANK A.G.(b)		178,818		194,243
	916	CONTINENTAL A.G.		47,943		105,986
	31,948	CTS EVENTIM A.G.		947,860		1,124,253
	17,639	DAIMLER A.G. (REGISTERED)		589,913		963,878
	13,070	DEUTSCHE BANK A.G. (REGISTERED)		478,830		569,427
	13,908	DEUTSCHE BOERSE A.G.		739,792		848,888
	3,261	DEUTSCHE LUFTHANSA A.G. (REGISTERED)		35,709		61,295
	19,219	DEUTSCHE POST A.G. (REGISTERED)		228,974		421,421
	23,764	DEUTSCHE TELEKOM A.G. (REGISTERED)		271,365		269,988
	1,565	FRESENIUS MEDICAL CARE A.G. & CO. KGAA		88,330		108,129
	2,289	FRESENIUS S.E. & CO. KGAA		150,261		263,448
	1,527	GEA GROUP A.G.		49,653		49,320
	9,320	GERRESHEIMER A.G.		469,617		493,419
	2,580	HANNOVER RUECKVERSICHERUNG A.G. (REGISTERED)		110,106		200,813
	23,070	HEIDELBERGCEMENT A.G.		1,037,374		1,397,643
	2,600	HOCHTIEF A.G.(b)		108,936		151,074
	21,437	INFINEON TECHNOLOGIES A.G.		120,692		173,956
	37,820	JENOPTIK A.G.		336,539		368,616
	1,045	K+S A.G. (REGISTERED)		44,974		48,314

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
Germany (Cont’d):
	1,680	KABEL DEUTSCHLAND HOLDING A.G.	$	100,991		125,628
	29,520	KLOECKNER & CO. S.E.(b)		297,635		349,492
	1,013	LANXESS A.G.		69,793		88,594
	1,803	LINDE A.G.		307,869		314,424
	465	MAN S.E.		50,636		49,722
	1,025	MERCK KGAA		86,079		135,236
	4,041	MUENCHENER RUECKVERSICHERUNGS A.G. (REGISTERED)		512,591		725,535
	2,570	RATIONAL A.G.		642,664		740,156
	8,089	RWE A.G.		329,670		333,936
	2,588	SALZGITTER A.G.		129,200		134,862
	18,062	SAP A.G.		753,061		1,446,883
	15,642	SIEMENS A.G. (REGISTERED)		1,039,593		1,700,122
	7,661	THYSSENKRUPP A.G.		152,398		180,005
	7,071	TUI A.G.(b)		57,698		73,346
	483	VOLKSWAGEN A.G.		48,103		103,764
	8,488	WINCOR NIXDORF A.G.		317,452		397,563
	61,274	WIRECARD A.G.		1,405,672		1,502,672
				15,364,707		21,466,245		5.26	%
Greece:
	3,332	COCA COLA HELLENIC BOTTLING CO. S.A.		76,471		78,827
	63,630	JUMBO S.A.		409,127		503,281
	27,055	METKA S.A.		248,841		352,753
				734,439		934,861		0.23	%
Hong Kong:
	208,600	AIA GROUP LTD.		682,342		831,363
	82,500	BOC HONG KONG HOLDINGS LTD.		169,112		258,826
	6,588,600	BONJOUR HOLDINGS LTD.		848,940		832,670
	28,000	CHEUNG KONG HOLDINGS LTD.		277,057		433,408
	10,000	CHEUNG KONG INFRASTRUCTURE HOLDINGS LTD.		46,496		61,430
	36,500	CLP HOLDINGS LTD.		253,113		306,501
	27,800	ESPRIT HOLDINGS LTD.		35,637		38,870
	26,000	GALAXY ENTERTAINMENT GROUP LTD.(b)		67,404		103,710
	50,014	GUOCO GROUP LTD.		417,780		603,261
	44,000	HANG LUNG PROPERTIES LTD.		116,126		176,418
	15,400	HANG SENG BANK LTD.		176,972		237,905
	13,000	HENDERSON LAND DEVELOPMENT CO. LTD.		45,544		92,605
	19,000	HONG KONG & CHINA GAS CO. LTD.		51,319		52,357
	10,300	HONG KONG EXCHANGES AND CLEARING LTD.		175,585		177,443
	400	HOPEWELL HIGHWAY INFRASTRUCTURE LTD.		229		223
	88,500	HOPEWELL HOLDINGS LTD.		337,564		382,666
	41,000	HUTCHISON WHAMPOA LTD.		238,015		434,941
	12,000	HYSAN DEVELOPMENT CO. LTD.		49,052		58,033
	27,000	KERRY PROPERTIES LTD.		90,767		141,024
	120,000	LI & FUNG LTD.		153,985		215,580
	40,500	LINK REIT (THE)		84,196		202,558
	30,500	MTR CORP. LTD.		88,703		120,734
	54,000	NEW WORLD DEVELOPMENT CO. LTD.		62,818		84,747
	43,500	NWS HOLDINGS LTD.		52,824		74,247
	190,000	PCCW LTD.		77,805		83,688
	6,668,300	PICO FAR EAST HOLDINGS LTD.		1,761,686		1,992,665
	1,942,500	PORTS DESIGN LTD.		1,477,795		1,553,885
	24,000	POWER ASSETS HOLDINGS LTD.		139,092		205,682
	48,000	SANDS CHINA LTD.		128,061		215,009
	22,000	SHANGRI-LA ASIA LTD.		29,501		44,330
	59,400	SINO LAND CO. LTD.		80,601		107,577
	2,800	SINO-FOREST CORP.(b)(d)		50,555		-
	25,000	SJM HOLDINGS LTD.		52,349		58,831
	241,500	STELLA INTERNATIONAL HOLDINGS LTD.		635,651		654,660
	11,000	SUN HUNG KAI PROPERTIES LTD.		109,933		166,025
	19,000	SWIRE PACIFIC LTD., CLASS A		127,857		236,111
	633,000	TECHTRONIC INDUSTRIES CO.		1,152,933		1,199,911
	3,000	TELEVISION BROADCASTS LTD.		9,222		22,499
	298,000	TEXWINCA HOLDINGS LTD.		236,882		284,614
	65,500	VTECH HOLDINGS LTD.		774,123		735,946
	19,000	WHEELOCK & CO. LTD.		30,489		96,691

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
Hong Kong (Cont’d):
	30,000	WYNN MACAU LTD.(b)	$	50,423		82,678
	4,785,400	XTEP INTERNATIONAL HOLDINGS		2,053,919		2,070,850
	360,500	YINGDE GASES GROUP CO.		355,161		370,930
	80,000	YUE YUEN INDUSTRIAL HOLDINGS LTD.		214,234		270,072
				14,069,852		16,374,174		4.01	%
Ireland:
	10,242	ACCENTURE PLC, CLASS A		329,345		681,093
	43,898	COVIDIEN PLC		1,933,418		2,534,671
	14,588	CRH PLC		212,444		304,942
	306	CRH PLC (DUBLIN EXCHANGE)		5,188		6,350
	5,080	ELAN CORP. PLC(b)		29,005		52,463
	6,217	EXPERIAN PLC		73,481		100,450
	124,830	HENDERSON GROUP PLC		245,162		276,969
	26,828	ICON PLC ADR(b)(c)		508,477		744,745
	6,478	JAMES HARDIE INDUSTRIES PLC		53,712		62,670
	929	KERRY GROUP PLC, CLASS A		50,775		49,312
	124	PROTHENA CORP. PLC(b)		556		908
	9,299	SHIRE PLC		267,371		285,600
	48,323	UBM PLC		516,779		558,234
				4,225,713		5,658,407		1.39	%
Israel:
	13,950	BANK HAPOALIM B.M.(b)		48,718		60,014
	53	ISRAEL (THE) CORP. LTD.		37,899		34,805
	1,820	ISRAEL CHEMICALS LTD.		21,615		21,941
	659	MELLANOX TECHNOLOGIES LTD.(b)		55,022		39,668
	5,900	MIZRAHI TEFAHOT BANK LTD.(b)		51,135		60,955
	1,494	NICE SYSTEMS LTD.(b)		50,675		50,054
	5,692	TEVA PHARMACEUTICAL INDUSTRIES LTD. ADR(c)		229,651		212,539
				494,715		479,976		0.12	%
Italy:
	45,194	AMPLIFON S.P.A.		191,093		224,519
	18,467	ASSICURAZIONI GENERALI S.P.A.		269,601		336,851
	2,238	ATLANTIA S.P.A.		25,873		40,591
	166,331	AZIMUT HOLDING S.P.A.		2,087,018		2,399,971
	37,200	BANCO POPOLARE SCARL(b)		61,868		62,267
	57,599	ENEL GREEN POWER S.P.A.		98,098		107,724
	84,176	ENEL S.P.A.		307,528		350,204
	49,857	ENI S.P.A.		958,264		1,229,949
	3,610	EXOR S.P.A.		90,616		90,959
	24,375	FIAT INDUSTRIAL S.P.A.		141,398		267,259
	10,222	FIAT S.P.A.(b)		27,207		51,633
	10,070	FINMECCANICA S.P.A.(b)		50,331		58,360
	65,001	INTESA SANPAOLO S.P.A.		105,892		112,452
	2,826	LUXOTTICA GROUP S.P.A.		118,626		117,423
	34,777	MEDIOLANUM S.P.A.		120,164		177,048
	32	PRYSMIAN S.P.A.		318		647
	4,376	SAIPEM S.P.A.		190,726		169,777
	57,530	SNAM S.P.A.		249,716		267,518
	7,497	TENARIS S.A.		100,711		156,282
	34,652	TERNA RETE ELETTRICA NAZIONALE S.P.A.		130,368		138,774
	10,464	UNICREDIT S.P.A.(b)		52,057		51,672
	25,343	UNIONE DI BANCHE ITALIANE S.C.P.A.		103,374		118,209
				5,480,847		6,530,089		1.60	%
Japan:
	19,794	ADERANS CO. LTD.(b)		230,091		261,527
	4,700	AEON CO. LTD.		52,433		53,724
	10,400	AEON CREDIT SERVICE CO. LTD.		165,828		209,978
	76,200	AEON DELIGHT CO. LTD.		1,553,600		1,489,854
	1,100	AEON MALL CO. LTD.		23,091		26,887
	2,300	AISIN SEIKI CO. LTD.		37,584		71,731
	17,000	AJINOMOTO CO., INC.		136,093		224,929
	2,000	AMADA CO. LTD.		10,582		13,014
	17,000	AOZORA BANK LTD.		53,794		52,235
	36,100	ASAHI CO. LTD.		561,894		516,732
	16,000	ASAHI GLASS CO. LTD.		120,885		116,246

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
Japan (Cont’d):
	5,600	ASAHI GROUP HOLDINGS LTD.	$	85,235		118,704
	31,000	ASAHI KASEI CORP.		147,138		183,065
	77,800	ASICS CORP.		1,063,884		1,185,271
	7,400	ASTELLAS PHARMA, INC.		236,149		332,418
	5,000	BANK OF KYOTO (THE) LTD.		43,972		42,068
	37,000	BANK OF YOKOHAMA (THE) LTD.		164,514		171,748
	1,300	BENESSE HOLDINGS, INC.		48,395		53,883
	13,800	BRIDGESTONE CORP.		205,726		357,711
	5,200	BROTHER INDUSTRIES LTD.		38,445		56,104
	20,100	CANON, INC.		672,638		788,366
	1,000	CASIO COMPUTER CO. LTD.		7,474		8,769
	15,000	CHIBA BANK (THE) LTD.		81,968		87,760
	4,500	CHUGAI PHARMACEUTICAL CO. LTD.		82,278		86,243
	11,800	CHUGOKU ELECTRIC POWER (THE) CO., INC.		185,442		185,046
	7,900	CITIZEN HOLDINGS CO. LTD.		31,581		41,761
	49,436	CREDIT SAISON CO. LTD.		605,262		1,236,230
	11,000	DAIDO STEEL CO. LTD.		45,649		55,214
	103	DAI-ICHI LIFE INSURANCE (THE) CO. LTD.		120,497		144,926
	9,800	DAIICHI SANKYO CO. LTD.		166,638		150,327
	4,500	DAIKIN INDUSTRIES LTD.		124,473		154,622
	10,000	DAIWA HOUSE INDUSTRY CO. LTD.		103,706		172,067
	31,000	DAIWA SECURITIES GROUP, INC.		119,396		172,660
	64,800	DENA CO. LTD.		2,028,069		2,130,680
	8,200	DENSO CORP.		185,234		285,318
	2,800	DENTSU, INC.		46,871		75,213
	48,000	DESCENTE LTD.		278,723		294,565
	13,000	DOWA HOLDINGS CO. LTD.		55,385		84,218
	7,000	EAST JAPAN RAILWAY CO.		392,789		452,594
	2,200	EISAI CO. LTD.		67,604		91,859
	179	EPS CORP.		514,491		458,630
	1,800	FAMILYMART CO. LTD.		52,590		74,096
	14,100	FANUC CORP.		2,036,196		2,622,090
	1,100	FAST RETAILING CO. LTD.		136,395		279,371
	11,000	FUJI HEAVY INDUSTRIES LTD.		57,631		138,504
	6,300	FUJIFILM HOLDINGS CORP.		113,804		126,892
	44,000	FUJITSU LTD.		171,664		184,742
	11,000	FUKUOKA FINANCIAL GROUP, INC.		36,036		44,027
	32,000	FURUKAWA ELECTRIC CO. LTD.(b)		65,376		71,900
	64,300	GREE, INC.		1,118,923		996,942
	6,000	GUNMA BANK (THE) LTD.		31,571		29,192
	1,500	HAMAMATSU PHOTONICS K.K.		52,686		54,116
	11,000	HANKYU HANSHIN HOLDINGS, INC.		51,221		56,788
	500	HIROSE ELECTRIC CO. LTD.		48,402		59,862
	7,000	HIROSHIMA BANK (THE) LTD.		26,154		29,330
	95,000	HITACHI LTD.		295,895		559,087
	6,000	HITACHI METALS LTD.		45,405		50,739
	9,500	HOKKAIDO ELECTRIC POWER CO., INC.		84,575		115,360
	11,400	HOKURIKU ELECTRIC POWER CO.		124,923		134,781
	28,800	HONDA MOTOR CO. LTD.		780,069		1,061,522
	2,800	HOYA CORP.		62,075		55,129
	300	IDEMITSU KOSAN CO. LTD.		23,804		26,129
	28	INPEX CORP.		153,822		149,432
	9,800	ISETAN MITSUKOSHI HOLDINGS LTD.		85,535		95,384
	18,200	ITOCHU CORP.		192,005		192,117
	8,000	J. FRONT RETAILING CO. LTD.		31,099		44,107
	5	JAPAN REAL ESTATE INVESTMENT CORP.		38,770		49,044
	8	JAPAN RETAIL FUND INVESTMENT CORP.		8,807		14,674
	22,000	JAPAN STEEL WORKS (THE) LTD.		126,429		142,520
	11,600	JAPAN TOBACCO, INC.		332,600		327,024
	3,300	JFE HOLDINGS, INC.		45,376		62,214
	4,000	JGC CORP.		53,048		124,609
	12,000	JOYO BANK (THE) LTD.		54,056		56,708
	3,100	JSR CORP.		39,530		58,565
	5,000	JTEKT CORP.		36,670		47,683
	29,100	JX HOLDINGS, INC.		159,013		163,898
	7,000	KAJIMA CORP.		15,004		23,120
	33,400	KANSAI ELECTRIC POWER (THE) CO., INC.		305,345		350,926
	2,000	KANSAI PAINT CO. LTD.		10,449		21,541

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2012

Shares		Security		Cost	Fair value (a)		Percent of net assets
Japan (Cont’d):
	63,013	KAO CORP.	$	1,591,030		1,641,767
	35,000	KAWASAKI HEAVY INDUSTRIES LTD.		71,135		95,115
	4,977	KDDI CORP.		239,416		351,550
	21,500	KEIHIN CORP.		261,255		307,502
	13,000	KEIKYU CORP.		95,310		115,055
	5,000	KEIO CORP.		28,322		37,281
	5,000	KEISEI ELECTRIC RAILWAY CO. LTD.		23,110		42,206
	981	KEYENCE CORP.		180,512		270,747
	6,000	KIKKOMAN CORP.		52,867		85,710
	49,000	KINTETSU CORP.		153,011		200,454
	10,000	KIRIN HOLDINGS CO. LTD.		103,112		117,504
	18,300	KOBAYASHI PHARMACEUTICAL CO. LTD.		982,900		869,006
	15,400	KOMATSU LTD.		339,281		394,078
	21,000	KUBOTA CORP.		129,773		241,194
	4,300	KURITA WATER INDUSTRIES LTD.		96,931		94,475
	2,700	KYOCERA CORP.		198,000		244,839
	7,000	KYUSHU ELECTRIC POWER CO., INC.		64,251		79,908
	2,800	LAWSON, INC.		120,035		190,325
	1,900	LIXIL GROUP CORP.		21,742		42,311
	24,000	MARUBENI CORP.		173,505		171,986
	6,500	MARUI GROUP CO. LTD.		32,287		52,011
	57,000	MAZDA MOTOR CORP.(b)		95,886		116,395
	1,600	MCDONALD’S HOLDINGS CO. JAPAN LTD.		43,060		42,205
	47,500	MEGANE TOP CO. LTD.		538,247		558,507
	1,700	MEIJI HOLDINGS CO. LTD.		54,895		73,683
	32,700	MEITEC CORP.		728,137		719,303
	1,800	MIRACA HOLDINGS, INC.		71,311		72,476
	40,000	MITSUBISHI CHEMICAL HOLDINGS CORP.		161,621		199,528
	25,200	MITSUBISHI CORP.		378,464		484,387
	32,000	MITSUBISHI ELECTRIC CORP.		244,114		272,366
	27,000	MITSUBISHI ESTATE CO. LTD.		353,310		645,470
	17,000	MITSUBISHI GAS CHEMICAL CO., INC.		75,149		104,161
	57,000	MITSUBISHI HEAVY INDUSTRIES LTD.		185,317		275,641
	4,000	MITSUBISHI LOGISTICS CORP.		45,017		57,377
	18,000	MITSUBISHI MATERIALS CORP.		47,129		61,354
	54,000	MITSUBISHI MOTORS CORP.(b)		51,556		55,819
	240,600	MITSUBISHI UFJ FINANCIAL GROUP, INC.		1,162,680		1,294,702
	2,700	MITSUBISHI UFJ LEASE & FINANCE CO. LTD.		83,878		116,124
	33,400	MITSUI & CO. LTD.		357,690		499,673
	37,000	MITSUI CHEMICALS, INC.		87,469		96,644
	8,000	MITSUI FUDOSAN CO. LTD.		184,883		195,449
	3,000	MITSUI MINING & SMELTING CO. LTD.		5,391		7,404
	266,120	MIZUHO FINANCIAL GROUP, INC.		440,505		486,905
	3,580	MS&AD INSURANCE GROUP HOLDINGS		75,251		71,523
	3,600	MURATA MANUFACTURING CO. LTD.		162,615		212,324
	1,500	NAMCO BANDAI HOLDINGS, INC.		14,652		19,454
	27,000	NEC CORP.(b)		70,167		56,853
	3,000	NGK SPARK PLUG CO. LTD.		28,359		39,868
	1,500	NIDEC CORP.		70,097		87,712
	10,069	NIFCO, INC.		227,783		223,184
	6,000	NIKON CORP.		75,728		177,141
	11	NIPPON BUILDING FUND, INC.		90,970		113,414
	17,000	NIPPON EXPRESS CO. LTD.		60,747		70,217
	6,000	NIPPON MEAT PACKERS, INC.		72,315		82,603
	4,200	NIPPON PAPER GROUP, INC.		49,572		58,385
	78,535	NIPPON STEEL CORP.		186,705		193,179
	7,300	NIPPON TELEGRAPH & TELEPHONE CORP.		335,022		306,645
	17,000	NISHI-NIPPON CITY BANK (THE) LTD.		40,901		41,879
	5,000	NISSAN CHEMICAL INDUSTRIES LTD.		50,851		59,208
	23,500	NISSAN MOTOR CO. LTD.		211,413		223,049
	2,500	NISSHIN SEIFUN GROUP, INC.		25,731		31,282
	3,000	NISSHINBO HOLDINGS, INC.		23,700		25,386
	1,200	NISSIN FOODS HOLDINGS CO. LTD.		43,959		45,502
	17,400	NISSIN KOGYO CO. LTD.		232,900		269,333
	600	NITORI HOLDINGS CO. LTD.		33,819		43,925
	3,200	NITTO DENKO CORP.		77,639		157,442
	5,700	NKSJ HOLDINGS, INC.		114,918		121,392
	72,300	NOMURA HOLDINGS, INC.		256,136		426,879

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
Japan (Cont’d):
	2,700	NOMURA RESEARCH INSTITUTE LTD.	$	43,930		55,891
	17,800	NORTH PACIFIC BANK LTD.(b)		49,457		49,911
	14	NTT DATA CORP.		36,520		43,772
	260	NTT DOCOMO, INC.		381,437		373,399
	65	NTT URBAN DEVELOPMENT CORP.		52,710		62,778
	12,000	OBAYASHI CORP.		48,665		67,546
	4,000	ODAKYU ELECTRIC RAILWAY CO. LTD.		30,548		41,613
	8,100	OLYMPUS CORP.(b)		119,871		157,214
	1,300	ONO PHARMACEUTICAL CO. LTD.		55,952		66,340
	8,000	ONWARD HOLDINGS CO. LTD.		54,094		60,366
	800	ORIENTAL LAND CO. LTD.		50,479		96,671
	1,090	ORIX CORP.		120,397		122,994
	37,000	OSAKA GAS CO. LTD.		121,878		134,393
	3,500	OTSUKA HOLDINGS CO. LTD.		97,073		98,262
	1,900	PRESTIGE INTERNATIONAL, INC.		20,966		16,591
	9,500	RAKUTEN, INC.		47,421		74,088
	23,400	RESONA HOLDINGS, INC.		97,985		106,091
	15,000	RICOH CO. LTD.		148,229		159,359
	1,200	RINNAI CORP.		52,047		81,528
	11,946	SANKYO CO. LTD.		626,465		472,704
	2,600	SANTEN PHARMACEUTICAL CO. LTD.		85,886		99,545
	21,520	SBI HOLDINGS, INC.		173,535		192,086
	3,400	SECOM CO. LTD.		133,812		171,358
	4,100	SEGA SAMMY HOLDINGS, INC.		38,822		69,248
	13,000	SEKISUI CHEMICAL CO. LTD.		66,177		112,582
	6,000	SEKISUI HOUSE LTD.		44,394		65,676
	12,800	SEVEN & I HOLDINGS CO. LTD.		281,200		360,255
	25,000	SHARP CORP.		50,043		87,672
	11,100	SHIKOKU ELECTRIC POWER CO., INC.		118,917		177,025
	4,000	SHIMADZU CORP.		25,419		26,984
	1,000	SHIMAMURA CO. LTD.		61,206		96,843
	1,500	SHIMANO, INC.		58,204		95,644
	8,300	SHIN-ETSU CHEMICAL CO. LTD.		411,842		506,960
	41,600	SHINKO PLANTECH CO. LTD.		342,251		328,387
	4,000	SHIONOGI & CO. LTD.		67,679		66,631
	6,000	SHISEIDO CO. LTD.		92,764		84,375
	8,000	SHIZUOKA BANK (THE) LTD.		74,794		78,132
	21,000	SHOWA DENKO K.K.		33,824		32,110
	900	SMC CORP.		106,941		163,272
	652	SMS CO. LTD.		1,377,794		1,292,342
	17,900	SOFTBANK CORP.		355,350		654,992
	4,400	SONY FINANCIAL HOLDINGS, INC.		56,074		79,148
	62,802	STANLEY ELECTRIC CO. LTD.		927,218		893,972
	7,000	SUMCO CORP.(b)		47,761		68,103
	43,000	SUMITOMO CHEMICAL CO. LTD.		145,530		135,667
	21,300	SUMITOMO CORP.		207,214		273,019
	13,100	SUMITOMO ELECTRIC INDUSTRIES LTD.		127,803		151,596
	12,000	SUMITOMO HEAVY INDUSTRIES LTD.		39,379		57,314
	9,000	SUMITOMO METAL MINING CO. LTD.		88,484		127,003
	26,400	SUMITOMO MITSUI FINANCIAL GROUP, INC.		824,716		959,086
	71,310	SUMITOMO MITSUI TRUST HOLDINGS, INC.		214,202		250,544
	6,000	SUMITOMO REALTY & DEVELOPMENT CO. LTD.		163,837		199,364
	54,400	SUMITOMO RUBBER INDUSTRIES LTD.		632,819		657,275
	5,800	SUZUKI MOTOR CORP.		104,611		151,622
	39,500	SYSMEX CORP.		1,825,892		1,809,740
	4,200	T&D HOLDINGS, INC.		47,440		51,190
	31,000	TAIHEIYO CEMENT CORP.		68,814		85,304
	11,000	TAISEI CORP.		19,822		36,364
	600	TAISHO PHARMACEUTICAL HOLDINGS CO. LTD.		40,190		40,979
	10,000	TAKASHIMAYA CO. LTD.		63,872		71,273
	7,100	TAKEDA PHARMACEUTICAL CO. LTD.		246,901		317,296
	1,500	TDK CORP.		58,582		54,546
	29,000	TEIJIN LTD.		67,529		71,525
	2,600	TERUMO CORP.		95,419		103,306
	2,000	THK CO. LTD.		29,290		35,939
	5,000	TOBU RAILWAY CO. LTD.		19,140		26,460
	1,000	TOHO CO. LTD.		13,412		17,612
	17,000	TOHO GAS CO. LTD.		81,221		91,255

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
Japan (Cont’d):
	7,200	TOHOKU ELECTRIC POWER CO., INC.(b)	$	56,650		67,003
	13,100	TOKAI RIKA CO. LTD.		168,635		182,342
	14,400	TOKIO MARINE HOLDINGS, INC.		359,676		401,501
	3,200	TOKYO ELECTRON LTD.		128,746		147,242
	40,000	TOKYO GAS CO. LTD.		151,969		182,878
	25,000	TOKYU CORP.		103,448		140,395
	23,000	TOKYU LAND CORP.		86,617		168,134
	4,000	TONENGENERAL SEKIYU K.K.		37,796		34,468
	17,000	TORAY INDUSTRIES, INC.		70,413		103,662
	80,000	TOSHIBA CORP.		245,424		316,336
	6,000	TOTO LTD.		30,029		45,070
	1,800	TOYO SEIKAN KAISHA LTD.		24,940		24,248
	3,000	TOYO SUISAN KAISHA LTD.		74,690		79,951
	4,000	TOYOTA INDUSTRIES CORP.		101,266		127,682
	55,000	TOYOTA MOTOR CORP.		1,917,045		2,567,211
	4,000	TOYOTA TSUSHO CORP.		63,233		98,760
	2,500	TREND MICRO, INC.		74,501		75,447
	1,700	TSUMURA & CO.		50,505		51,234
	13,400	TSURUHA HOLDINGS, INC.		986,250		1,051,103
	8,000	UBE INDUSTRIES LTD.		13,963		19,239
	4,000	UNICHARM CORP.		141,844		208,226
	80	USS CO. LTD.		3,505		8,292
	4,100	WEST JAPAN RAILWAY CO.		134,756		161,468
	236	YAHOO JAPAN CORP.		62,283		76,386
	1,300	YAKULT HONSHA CO. LTD.		22,252		56,964
	2,720	YAMADA DENKI CO. LTD.		102,434		104,891
	1,000	YAMAGUCHI FINANCIAL GROUP, INC.		8,604		8,835
	4,700	YAMAHA MOTOR CO. LTD.		47,385		52,098
				48,766,907		57,108,636		14.00	%
Mexico:
	4,183	FRESNILLO PLC		101,968		129,793
	500,419	WAL-MART DE MEXICO S.A.B. DE C.V., SERIES V		1,523,435		1,638,732
				1,625,403		1,768,525		0.43	%
Netherlands:
	36,750	AALBERTS INDUSTRIES N.V.		686,893		776,899
	25,740	ACCELL GROUP		426,901		452,872
	34,297	AEGON N.V.		128,398		218,568
	4,340	AKZO NOBEL N.V.		184,408		286,383
	21,730	ARCADIS N.V.		459,143		509,176
	10,521	ARCELORMITTAL		163,439		182,130
	8,054	ASML HOLDING N.V.		131,659		521,413
	17,454	ASML HOLDING N.V. (REGISTERED)		952,704		1,124,212
	17,379	CORE LABORATORIES N.V.		1,832,751		1,899,698
	1,094	CORIO N.V.		43,642		49,770
	25,239	DE MASTER BLENDERS 1753 N.V.(b)		272,152		293,581
	1,259	FUGRO N.V. - CVA		70,525		73,753
	768	GEMALTO N.V.		50,382		69,532
	965	HEINEKEN HOLDING N.V.		23,862		52,860
	3,662	HEINEKEN N.V.		128,663		244,266
	221,418	ING GROEP N.V. - CVA(b)		2,055,673		2,117,351
	71,860	KONINKLIJKE AHOLD N.V.		905,670		954,495
	2,539	KONINKLIJKE DSM N.V.		86,313		152,935
	59,484	KONINKLIJKE PHILIPS ELECTRONICS N.V.		1,231,488		1,595,854
	9,990	ORIFLAME COSMETICS S.A. SDR		328,762		318,999
	9,716	QIAGEN N.V.(b)		139,904		176,215
	3,238	RANDSTAD HOLDING N.V.		99,928		119,528
	22,774	REED ELSEVIER N.V.		264,057		337,419
	54,559	ROYAL DUTCH SHELL PLC, CLASS A		1,445,241		1,927,817
	50,447	ROYAL DUTCH SHELL PLC, CLASS B		1,266,061		1,785,438
	21,030	ROYAL IMTECH N.V.		572,376		491,765
	17,078	TNT EXPRESS N.V.		152,515		193,186
	21,023	UNILEVER N.V. - CVA		662,501		793,276
	25,180	USG PEOPLE N.V.		195,853		201,833
	6,193	WOLTERS KLUWER N.V.		101,075		128,058
				15,062,939		18,049,282		4.42	%
New Zealand:
	11,811	CONTACT ENERGY LTD.		51,688		50,979

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
New Zealand (Cont’d):
	7,321	FLETCHER BUILDING LTD.	$	51,323		51,228
	18,050	SKYCITY ENTERTAINMENT GROUP LTD.		49,428		56,676
	37,843	TELECOM CORP. OF NEW ZEALAND LTD.		73,138		71,566
				225,577		230,449		0.06	%
Norway:
	8,104	AKER SOLUTIONS ASA		124,751		166,765
	13,773	DNB ASA		87,874		175,563
	3,900	KVAERNER ASA		6,506		11,423
	21,490	NORSK HYDRO ASA		82,180		109,477
	97,189	ORKLA ASA		661,656		850,870
	11,450	SCHIBSTED ASA		434,923		488,283
	3,754	SEADRILL LTD.		39,723		138,351
	16,318	STATOIL ASA		293,362		409,485
	11,360	TELENOR ASA		229,860		230,798
	85,000	TOMRA SYSTEMS ASA		703,315		768,394
	4,000	YARA INTERNATIONAL ASA		109,527		198,545
				2,773,677		3,547,954		0.87	%
Philippines:
	328,710	METROPOLITAN BANK & TRUST		731,360		819,261
				731,360		819,261		0.20	%
Poland:
	29,290	EUROCASH S.A.		353,713		412,430
				353,713		412,430		0.10	%
Portugal:
	35,520	ENERGIAS DE PORTUGAL S.A.		97,580		106,769
	3,330	GALP ENERGIA SGPS S.A.		51,795		51,732
	58,647	JERONIMO MARTINS SGPS S.A.		982,426		1,131,689
	42,710	PORTUGAL TELECOM SGPS S.A. (REGISTERED)		200,104		213,647
				1,331,905		1,503,837		0.37	%
Russia:
	6,460	X5 RETAIL GROUP N.V. GDR (REGISTERED)(b)		122,935		115,915
				122,935		115,915		0.03	%
Singapore:
	31,000	ASCENDAS REAL ESTATE INVESTMENT TRUST		51,644		60,732
	39,500	CAPITALAND LTD.		75,674		121,178
	36,000	CAPITAMALL TRUST		34,133		63,080
	11,000	CITY DEVELOPMENTS LTD.		71,096		117,331
	34,000	DBS GROUP HOLDINGS LTD.		221,626		416,205
	68,650	FLEXTRONICS INTERNATIONAL LTD.(b)		411,378		426,316
	22,000	FRASER AND NEAVE LTD.		58,463		175,103
	130,000	GLOBAL LOGISTIC PROPERTIES LTD.		203,681		298,917
	2,000	JARDINE CYCLE & CARRIAGE LTD.		79,849		79,573
	28,000	KEPPEL CORP. LTD.		105,334		254,422
	18,000	OVERSEA-CHINESE BANKING CORP. LTD.		141,450		144,822
	17,000	SEMBCORP INDUSTRIES LTD.		31,827		74,073
	22,000	SEMBCORP MARINE LTD.		32,803		83,755
	18,000	SINGAPORE AIRLINES LTD.		121,795		159,191
	31,000	SINGAPORE EXCHANGE LTD.		139,131		179,719
	41,000	SINGAPORE PRESS HOLDINGS LTD.		91,268		135,649
	38,000	SINGAPORE TECHNOLOGIES ENGINEERING LTD.		91,421		119,950
	188,000	SINGAPORE TELECOMMUNICATIONS LTD.		370,916		511,277
	9,000	UNITED OVERSEAS BANK LTD.		92,783		147,406
	15,000	UOL GROUP LTD.		49,917		74,043
				2,476,189		3,642,742		0.89	%
SouthAfrica:
	49,316	SHOPRITE HOLDINGS LTD.		1,033,343		1,198,598
				1,033,343		1,198,598		0.29	%
South Korea:
	7,439	BINGGRAE CO. LTD.		692,763		781,305
	52,710	BS FINANCIAL GROUP, INC.		588,471		654,914
	46,420	DGB FINANCIAL GROUP, INC.		573,075		633,371
	21,400	HALLA CLIMATE CONTROL CORP.		447,476		475,463
	4,234	HYUNDAI MIPO DOCKYARD		495,687		508,353
	4,425	KIWOOM SECURITIES CO. LTD.		239,844		245,040
	6,820	KOREA INVESTMENT HOLDINGS CO. LTD.		241,658		273,489

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

CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater International Fund
December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
South Korea (Cont’d):
	7,454	MEGASTUDY CO. LTD.	$	484,709		549,411
	9,049	YOUNGONE HOLDINGS CO. LTD.		515,320		505,312
				4,279,003		4,626,658		1.13	%
Spain:
	10,866	ABERTIS INFRAESTRUCTURAS S.A.		160,296		181,089
	1,260	ACCIONA S.A.		78,312		95,548
	7,760	ACERINOX S.A.		95,129		85,610
	2,148	AMADEUS IT HOLDING S.A., CLASS A		49,855		53,902
	26,395	ANTENA 3 DE TELEVISION S.A.		104,337		136,333
	97,279	BANCO BILBAO VIZCAYA ARGENTARIA S.A.		737,382		893,054
	65,630	BANCO DE SABADELL S.A.(b)		181,306		173,902
	153,939	BANCO SANTANDER S.A.		1,041,028		1,241,222
	27,341	CAIXABANK		92,783		95,583
	1,388	CONSTRUCCIONES Y AUXILIAR DE FERROCARRILES S.A.		645,501		639,599
	9,700	DISTRIBUIDORA INTERNACIONAL DE ALIMENTACION S.A.		47,567		62,329
	73,594	DURO FELGUERA S.A.		466,774		471,198
	5,084	ENAGAS S.A.		87,894		108,793
	18,004	GAS NATURAL SDG S.A.		278,700		329,219
	1,818	GRIFOLS S.A.(b)		52,706		63,963
	17,125	IBERDROLA S.A.		71,908		95,496
	3,101	INDITEX S.A.		374,413		434,443
	80,017	MAPFRE S.A.		217,995		246,970
	20,350	MELIA HOTELS INTERNATIONAL S.A.		135,424		156,384
	3,172	RED ELECTRICA CORP. S.A.		137,295		156,721
	22,452	REPSOL S.A.		446,870		461,089
	10,996	TECNICAS REUNIDAS S.A.		547,514		511,339
	23,962	TELEFONICA S.A.		368,956		325,374
	4,021	ZARDOYA OTIS S.A.		49,157		57,956
				6,469,102		7,077,116		1.74	%
Sweden:
	7,400	ASSA ABLOY AB, CLASS B		89,466		278,650
	11,337	ATLAS COPCO AB, CLASS A		121,649		313,843
	6,368	ATLAS COPCO AB, CLASS B		78,834		156,233
	39,960	DUNI AB		351,554		364,717
	8,524	ELECTROLUX AB, CLASS B		113,200		223,871
	8,575	ELEKTA AB, CLASS B		104,728		135,225
	77	GETINGE AB, CLASS B		905		2,608
	13,660	HENNES & MAURITZ AB, CLASS B		276,813		474,676
	3,700	HEXAGON AB, CLASS B		56,830		93,009
	17,500	HUSQVARNA AB, CLASS B		64,201		106,080
	10,000	INDUSTRIVARDEN AB, CLASS C		103,927		166,307
	46,254	INDUTRADE AB		1,300,495		1,400,003
	3,000	INVESTMENT AB KINNEVIK, CLASS B		51,225		62,686
	11,800	INVESTOR AB, CLASS B		161,782		309,493
	2,344	LUNDIN PETROLEUM AB(b)		54,274		54,086
	1,045	MILLICOM INTERNATIONAL CELLULAR S.A. SDR		88,132		90,827
	41,436	NORDEA BANK AB		232,747		396,841
	23,773	SANDVIK AB		201,678		382,092
	2,429	SCANIA AB, CLASS B		50,725		50,519
	15,868	SECURITAS AB, CLASS B		125,722		139,388
	41,800	SKANDINAVISKA ENSKILDA BANKEN AB, CLASS A		171,318		356,453
	2,800	SKANSKA AB, CLASS B		23,703		46,068
	5,400	SSAB AB, CLASS A		48,129		47,618
	56,755	SVENSKA CELLULOSA AB, CLASS B		1,036,621		1,242,405
	11,896	SVENSKA HANDELSBANKEN AB, CLASS A		264,805		426,233
	4,856	SWEDBANK AB, CLASS A		93,496		95,558
	5,254	TELE2 AB, CLASS B		90,044		95,288
	58,718	TELEFONAKTIEBOLAGET LM ERICSSON, CLASS B		533,417		590,601
	43,674	TELIASONERA AB		244,086		297,486
	21,000	VOLVO AB, CLASS B		127,847		289,584
				6,262,353		8,688,448		2.13	%
Switzerland:
	44,424	ABB LTD. (REGISTERED)		619,065		922,416
	25,102	ACE LTD.		2,022,995		2,003,140
	2,362	ACTELION LTD. (REGISTERED)		90,246		113,456
	18,895	ADECCO S.A. (REGISTERED)		790,950		1,001,543
	2,059	ARYZTA A.G.		50,704		105,643

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

CLEARWATER INVESTMENT TRUST

Schedule of Investments - Clearwater International Fund

December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
Switzerland (Cont’d):
	484	BALOISE HOLDING A.G. (REGISTERED)	$	26,452		42,238
	8,167	CIE FINANCIERE RICHEMONT S.A., CLASS A (BEARER)		550,612		653,062
	8,634	CREDIT SUISSE GROUP A.G. (REGISTERED)		188,288		216,639
	440	FORBO HOLDING A.G. (REGISTERED)		288,223		281,918
	1,115	GEBERIT A.G. (REGISTERED)		110,661		246,837
	174	GIVAUDAN S.A. (REGISTERED)		105,989		184,471
	52,102	GLENCORE INTERNATIONAL PLC		293,569		303,635
	4,025	HOLCIM LTD. (REGISTERED)		183,971		296,453
	6,304	JULIUS BAER GROUP LTD.		156,474		226,809
	8,784	KUEHNE + NAGEL INTERNATIONAL A.G. (REGISTERED)		975,525		1,069,020
	41	LINDT & SPRUENGLI A.G. (PARTICIPATION CERTIFICATE)		59,775		133,720
	3	LINDT & SPRUENGLI A.G. (REGISTERED)		75,352		113,213
	41,960	LOGITECH INTERNATIONAL S.A. (REGISTERED)		369,319		316,378
	91,854	NESTLE S.A. (REGISTERED)		3,591,121		5,986,503
	31,669	NOBEL BIOCARE HOLDING A.G. (REGISTERED)		289,021		269,543
	58,378	NOVARTIS A.G. (REGISTERED)		2,520,675		3,696,000
	15,256	PANALPINA WELTTRANSPORT HOLDING A.G. (REGISTERED)		1,198,279		1,551,001
	10,711	PARGESA HOLDING S.A. (BEARER)		685,433		741,217
	14,218	ROCHE HOLDING A.G. (GENUSSCHEIN)		1,931,605		2,896,561
	1,381	SCHINDLER HOLDING A.G. (PARTICIPATION CERTIFICATE)		108,493		199,473
	589	SCHINDLER HOLDING A.G. (REGISTERED)		68,597		83,480
	1,089	SGS S.A. (REGISTERED)		2,245,506		2,419,154
	77	SIKA A.G. (BEARER)		152,753		178,457
	1,300	SONOVA HOLDING A.G. (REGISTERED)		84,464		144,023
	10,640	STMICROELECTRONICS N.V.		55,625		77,576
	635	SULZER A.G. (REGISTERED)		30,609		100,634
	510	SWATCH GROUP (THE) A.G. (BEARER)		241,014		262,464
	620	SWISS PRIME SITE A.G. (REGISTERED)		50,243		51,877
	3,258	SWISS RE A.G.		237,318		237,783
	850	SWISSCOM A.G. (REGISTERED)		312,654		366,598
	1,170	SYNGENTA A.G. (REGISTERED)		237,102		471,958
	56,261	TE CONNECTIVITY LTD.		1,102,960		2,088,408
	4,316	WOLSELEY PLC		70,476		205,144
	42,081	XSTRATA PLC		389,442		748,456
	2,962	ZURICH FINANCIAL SERVICES A.G.		537,249		792,014
				23,098,809		31,798,915		7.79	%
Taiwan:
	803,000	D-LINK CORP.		454,041		508,550
	112,000	GIANT MANUFACTURING CO. LTD.		593,113		644,256
	142,000	SIMPLO TECHNOLOGY CO. LTD.		830,775		717,246
	159,151	TAIWAN SEMICONDUCTOR MANUFACTURING CO. LTD. ADR(c)		2,442,840		2,731,031
				4,320,769		4,601,083		1.13	%
Thailand:
	1,024,700	LPN DEVELOPMENT PCL (REGISTERED)		612,245		616,361
				612,245		616,361		0.15	%
Turkey:
	35,552	AYGAZ A/S		160,534		188,258
				160,534		188,258		0.05	%
United Kingdom:
	11,608	3I GROUP PLC		38,159		40,579
	13,185	ABERDEEN ASSET MANAGEMENT PLC		49,918		78,185
	56,727	ADMIRAL GROUP PLC		1,011,863		1,086,259
	2,169	AGGREKO PLC		65,013		62,203
	91,638	ALENT PLC(b)		424,694		459,684
	6,487	AMEC PLC		66,053		106,133
	21,098	ANGLO AMERICAN PLC		402,109		673,480
	4,811	ANTOFAGASTA PLC		33,978		106,904
	33,451	AON PLC		1,617,255		1,859,876
	12,569	ARM HOLDINGS PLC		157,039		160,719
	55,785	ARM HOLDINGS PLC ADR(c)		1,591,976		2,110,347
	119,301	ASHMORE GROUP PLC		722,417		689,836
	23,825	ASTRAZENECA PLC		844,023		1,126,336
	59,299	AVIVA PLC		212,664		357,976
	5,239	BABCOCK INTERNATIONAL GROUP PLC		47,416		81,303

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

CLEARWATER INVESTMENT TRUST

Schedule of Investments - Clearwater International Fund

December 31, 2012

Shares		Security	Cost		Fair value (a)		Percent of net assets
United Kingdom (Cont’d):
	45,083	BAE SYSTEMS PLC	$	222,741		247,685
	192,166	BARCLAYS PLC		735,199		829,847
	28,750	BELLWAY PLC		466,911		488,699
	78,740	BERENDSEN PLC		717,414		750,034
	58,418	BG GROUP PLC		917,965		979,569
	40,871	BHP BILLITON PLC		904,905		1,436,187
	84,450	BODYCOTE PLC		502,843		626,333
	40,090	BOVIS HOMES GROUP PLC		334,837		375,320
	335,818	BP PLC		2,248,089		2,326,803
	26,734	BRITISH AMERICAN TOBACCO PLC		942,646		1,354,613
	11,630	BRITISH LAND CO. PLC		61,579		108,122
	17,468	BRITISH SKY BROADCASTING GROUP PLC		116,486		218,209
	130,142	BT GROUP PLC		472,713		490,570
	5,069	BUNZL PLC		39,524		82,766
	8,202	BURBERRY GROUP PLC		40,549		167,932
	16,980	CAPITA PLC		162,367		210,257
	6,025	CAPITAL SHOPPING CENTRES GROUP PLC		23,472		33,900
	3,001	CARNIVAL PLC		81,398		116,008
	21,278	CARPETRIGHT PLC(b)		208,442		236,350
	92,189	CENTRICA PLC		340,421		500,807
	11,669	COBHAM PLC		30,337		42,437
	278,351	COMPASS GROUP PLC		1,770,331		3,291,991
	2,950	CRODA INTERNATIONAL PLC		101,220		114,290
	178,700	DEBENHAMS PLC		183,635		331,743
	86,957	DIAGEO PLC		1,189,739		2,531,538
	17,440	DIGNITY PLC		263,164		301,543
	148,835	DIPLOMA PLC		1,084,198		1,338,370
	78,731	DIRECT LINE INSURANCE GROUP PLC(b)		243,123		275,326
	24,646	DOMINO’S PIZZA GROUP PLC		198,335		201,760
	95	DRAX GROUP PLC		544		840
	15,800	EVRAZ PLC		58,891		69,739
	92,109	FIBERWEB PLC		101,889		104,626
	9,888	G4S PLC		27,001		41,289
	32,712	GKN PLC		101,683		122,057
	91,912	GLAXOSMITHKLINE PLC		1,410,189		1,995,555
	101,170	GREGGS PLC		781,008		751,604
	17,505	HAMMERSON PLC		69,535		141,040
	62,510	HOMESERVE PLC		239,482		235,995
	356,152	HSBC HOLDINGS PLC		2,511,669		3,766,960
	109,069	ICAP PLC		566,994		557,998
	323,672	IG GROUP HOLDINGS PLC		2,355,619		2,369,815
	18,792	IMPERIAL TOBACCO GROUP PLC		441,174		725,650
	11,958	INMARSAT PLC		92,794		115,432
	15,937	INTERNATIONAL CONSOLIDATED AIRLINES GROUP S.A.(b)		37,969		47,100
	2,722	INTERTEK GROUP PLC		108,909		137,368
	12,127	INVENSYS PLC		29,802		65,887
	11,111	INVESTEC PLC		66,959		75,677
	303,659	ITE GROUP PLC		975,638		1,218,648
	17,144	ITV PLC		9,112		29,411
	29,306	J. SAINSBURY PLC		141,007		164,888
	3,841	JOHNSON MATTHEY PLC		85,088		147,515
	4,109	KAZAKHMYS PLC		31,447		54,032
	42,914	KINGFISHER PLC		109,517		198,215
	195,230	LAIRD PLC		683,216		647,720
	15,511	LAND SECURITIES GROUP PLC		113,585		209,706
	24,932	LEGAL & GENERAL GROUP PLC		59,462		60,191
	1,573,050	LLOYDS BANKING GROUP PLC(b)		1,240,403		1,260,453
	6,030	LONDON STOCK EXCHANGE GROUP PLC		69,795		105,328
	198,580	MAN GROUP PLC		259,918		266,274
	25,083	MARKS & SPENCER GROUP PLC		101,882		156,385
	223,728	MEARS GROUP PLC		1,067,408		1,195,825
	13,587	MEGGITT PLC		60,745		84,699
	15,880	MELROSE INDUSTRIES PLC		52,258		59,161
	92,482	MICHAEL PAGE INTERNATIONAL PLC		519,290		597,311
	348,938	MITIE GROUP PLC		1,649,110		1,493,172
	28,932	NATIONAL GRID PLC		186,288		331,400

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

CLEARWATER INVESTMENT TRUST

Schedule of Investments - Clearwater International Fund

December 31, 2012

Shares			Security	Cost		Fair value (a)		Percent of net assets
United Kingdom (Cont’d):
	3,200		NEXT PLC	$	86,367		197,506
	96,618		OLD MUTUAL PLC		133,905		286,984
	12,536		PEARSON PLC		148,820		245,071
	3,761		PETROFAC LTD.		71,320		101,896
	26,634		PRUDENTIAL PLC		375,820		371,632
	442,700		QINETIQ GROUP PLC		825,790		1,300,163
	950		RANDGOLD RESOURCES LTD.		104,460		93,628
	13,321		RECKITT BENCKISER GROUP PLC		585,115		834,477
	185,888		REED ELSEVIER PLC		1,450,716		1,951,805
	24,403		RESOLUTION LTD.		95,067		97,414
	20,541		REXAM PLC		87,985		144,344
	9,588		RIGHTMOVE PLC		246,958		220,857
	19,369		RIO TINTO PLC		853,296		1,128,679
	17,193		ROLLS-ROYCE HOLDINGS PLC		248,249		247,721
	21,561		ROYAL BANK OF SCOTLAND GROUP PLC(b)		103,058		116,125
	65,996		RSA INSURANCE GROUP PLC		124,109		133,200
	11,375		SABMILLER PLC		504,213		535,399
	21,731		SAGE GROUP (THE) PLC		74,327		104,105
	76,707		SAVILLS PLC		358,714		595,706
	10,277		SEGRO PLC		36,889		42,139
	77,648		SERCO GROUP PLC		686,588		668,480
	4,954		SEVERN TRENT PLC		76,220		126,923
	14,030		SMITH & NEPHEW PLC		98,533		155,265
	5,478		SMITHS GROUP PLC		80,025		107,824
	16,949		SSE PLC		293,983		391,710
	46,350		STANDARD CHARTERED PLC		772,953		1,174,911
	48,103		STANDARD LIFE PLC		131,737		256,934
	6,872		SUBSEA 7 S.A.		162,265		164,358
	46,509		SYNERGY HEALTH PLC		706,531		824,695
	8,607		TATE & LYLE PLC		92,385		106,729
	347,453		TESCO PLC		1,758,861		1,908,670
	18,836		TULLOW OIL PLC		298,063		383,583
	24,244		UNILEVER PLC		545,190		920,249
	38,512		UNILEVER PLC ADR(c)		941,533		1,491,185
	10,541		UNITED UTILITIES GROUP PLC		80,109		115,669
	307,500		VECTURA GROUP PLC(b)		435,905		427,643
	2,343		VEDANTA RESOURCES PLC		35,450		45,793
	78,964		VESUVIUS PLC		355,588		446,603
	928,295		VODAFONE GROUP PLC		1,671,709		2,334,538
	1,806		WEIR GROUP (THE) PLC		44,508		56,057
	2,849		WHITBREAD PLC		65,613		113,580
	14,810		WM MORRISON SUPERMARKETS PLC		54,378		63,345
	23,432		WPP PLC		141,019		340,637
					54,350,764		69,988,027		17.15	%
United States:
	43,295		ARCH CAPITAL GROUP LTD.(b)		830,535		1,905,846
	23,080		AXIS CAPITAL HOLDINGS LTD.		861,791		799,491
	9,091		BROOKFIELD OFFICE PROPERTIES, INC.(b)		79,818		155,005
	1,379		CATAMARAN CORP.(b)		63,335		64,853
	64,714		COCA-COLA ENTERPRISES, INC.		2,030,149		2,053,375
	21,389		SIGNET JEWELERS LTD.		414,556		1,142,173
	8,041		THOMSON REUTERS CORP.		206,631		232,653
					4,486,815		6,353,396		1.56	%
		Sub-total Common Stocks:			311,374,612		386,451,806		94.71	%
Preferred Stocks:
Germany:
	1,521		BAYERISCHE MOTOREN WERKE A.G.		49,612		98,290
	604		HENKEL A.G. & CO. KGAA		50,309		49,602
	3,478		PORSCHE AUTOMOBIL HOLDING S.E.		159,145		283,410
	3,577		PROSIEBENSAT.1 MEDIA A.G.		60,489		100,653
	2,770		RWE A.G. (NON VOTING)		76,994		104,474

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

CLEARWATER INVESTMENT TRUST

Schedule of Investments - Clearwater International Fund

December 31, 2012

Shares			Security	Cost		Fair value (a)		Percent of net assets
Germany (Cont’d):
	1,742		VOLKSWAGEN A.G.	$	376,312		396,315
					772,861		1,032,744		0.25	%
		Sub-total Preferred Stocks			772,861		1,032,744		0.25	%
Rights:
Austria:
	10,586		IMMOEAST A.G.(b)		-		-
					-		-		0.00	%
Spain:
	22,452		REPSOL S.A.(b)		14,061		13,692
					14,061		13,692		0.00	%
		Sub-total Rights			14,061		13,692		0.00	%
Short-Term Investments:
	33,524,860		NORTHERN INSTITUTIONAL FUNDS -
			U.S. GOVERNMENT SELECT PORTFOLIO, 0.01%(e)		33,524,860		33,524,860
		Sub-total Short-Term Investments:			33,524,860		33,524,860		8.22	%
			Grand total(f)	$	345,686,394		421,023,102		103.18	%

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 2.81% of net assets.
(d)	This security is being fair valued according to procedures adopted by the Board of Trustees.
(e)	The short-term investment is a money market portfolio of the investment company, Northern Institutional Funds.

At December 31, 2011, the value of the Clearwater International Fund’s investment in the U.S. Government Select Portfolio of the Northern Institutional Funds was approximately $2,073,315 with net purchases of approximately $31,451,545 during the fiscal year ended December 31, 2012.

(f) At December 31, 2012, the cost for Federal income tax purposes was $347,101,180. The aggregate gross unrealized appreciation and depreciation of investments in securities based on this cost were as follows:

Gross unrealized appreciation	$	77,688,816
Gross unrealized depreciation		(3,766,894	)
Net unrealized appreciation	$	73,921,922

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

CLEARWATER INVESTMENT TRUST

Schedule of Investments - Clearwater International Fund

December 31, 2012

At December 31, 2012, the industry sectors for the Clearwater International Fund were:

Industry Sector	Percent of Long-Term Investments
Consumer Discretionary		15.87	%
Consumer Staples		12.20
Energy		6.37
Financials		20.92
Health Care		7.91
Industrials		16.65
Information Technology		8.06
Materials		7.72
Telecommunication Services		2.39
Utilities		1.91
		100.00	%

At December 31, 2012, the Clearwater International Fund’s investments were denominated in the following currencies:

Concentration by Currency	Percent of Long-Term Investments
Euro		21.86	%
British Pound		18.31
Japanese Yen		14.74
United States Dollar		9.94
Australian Dollar		7.23
Canadian Dollar		6.97
Swiss Franc		6.72
Hong Kong Dollar		5.53
All other currencies less than 5%		8.70
		100.00	%

At December 31, 2012, 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 Gains (Losses)			Counterparty
Euro		4,698		United States Dollar		6,204		1/2/13	$	3			Northern Trust
Hong Kong Dollar		105,115		United States Dollar		13,560		1/2/13		(2	)		Northern Trust
United States Dollar		5,019		British Pound		3,123		1/2/13		54			Morgan Stanley
United States Dollar		15,630		British Pound		9,701		1/2/13		128			Northern Trust
United States Dollar		21,574		Hong Kong Dollar		167,238		1/2/13		3			Northern Trust
British Pound		889		United States Dollar		1,437		1/3/13		(7	)		Northern Trust
British Pound		935		United States Dollar		1,512		1/3/13		(7	)		Northern Trust
Canadian Dollar		664		United States Dollar		666		1/3/13		(1	)		Northern Trust
Hong Kong Dollar		161,750		United States Dollar		20,869		1/3/13		-	*		Northern Trust
Hong Kong Dollar		10,875		United States Dollar		1,403		1/3/13		-	*		Northern Trust
Hong Kong Dollar		89,937		United States Dollar		11,602		1/3/13		(2	)		Northern Trust
United States Dollar		27,639		Australian Dollar		26,656		1/3/13		35			Northern Trust
United States Dollar		12,138		British Pound		7,513		1/3/13		66			Northern Trust
United States Dollar		5,049		British Pound		3,123		1/3/13		25			State Street
United States Dollar		12,725		Hong Kong Dollar		98,646		1/3/13		2			Northern Trust
United States Dollar		566		Hong Kong Dollar		4,384		1/3/13		-	*		Northern Trust
United States Dollar		61,039		Australian Dollar		58,776		1/4/13		(22	)		Northern Trust
United States Dollar		5,527		Japanese Yen		471,674		1/4/13		(83	)		Morgan Stanley
United States Dollar		5,114		Swiss Franc		4,671		1/4/13		(7	)		Bank of America
United States Dollar		5,583		Japanese Yen		478,763		1/7/13		(56	)		Bank of America

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

CLEARWATER INVESTMENT TRUST

Schedule of Investments - Clearwater International Fund

December 31, 2012

Contracts To Deliver Currency	Amount (Local Currency)		In Exchange For Currency		Amount (Local Currency)		Settlement Date		Unrealized Gains (Losses)			Counterparty
Japanese Yen		858,678		United States Dollar		9,985		1/8/13	$	73			Morgan Stanley
Japanese Yen		342,039,600		United States Dollar		4,350,542		2/15/13		401,014			Northern Trust
Japanese Yen		16,623,952		United States Dollar		193,791		2/15/13		1,834			Northern Trust
United States Dollar		746,999		Japanese Yen		59,101,067		2/15/13		(64,559	)		Northern Trust
									$	338,491

* Amount rounds to less than $1.

The Clearwater International Fund did not have any spot foreign currency transactions outstanding as of December 31, 2012.

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

CLEARWATER INVESTMENT TRUST

Schedule of Investments – Clearwater International Fund

December 31, 2012

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

Item 2. Code of Ethics

As of December 31, 2012, 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, 2012, 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	2012 = $80,300	2011 = $83,600
(b)	Audit-Related Fees	2012= $0	2011= $0
(c)	Tax Fees	2012= $20,700	2011= $21,500
(d)	All Other Fees	2012 = $79,500*	2011 = $73,700*
	* Amounts relate to audit services for Clearwater Management Company and its affiliates.
(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.

	2012 = $0	2011 = $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., Chief Executive Officer
Date: March 11, 2013

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., Chief Executive Officer
Date: March 11, 2013
Clearwater Investment Trust
By	/s/ George H. Weyerhaeuser, Jr.
	George H. Weyerhaeuser, Jr., Treasurer
Date: March 11, 2013