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: 811-5038
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Clearwater Investment Trust
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(Exact name of registrant as specified in charter)
2000 Wells Fargo Place, 30 East 7th Street, Saint Paul, Minnesota 55101-4930
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(Address of principal executive offices) (Zip code)
Susanne S. Smith
Chief Compliance Officer
Fiduciary Counselling, Inc.
2000 Wells Fargo Place, 30 East 7th Street
Saint Paul, Minnesota 55101-4930
(Name and address of agent for service)
Copy to:
Timothy Silva, Esq.
Wilmer, Cutler, Pickering, Hale and Dorr, LLP
60 State Street
Boston, Massachusetts 02109
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(Name and address for agent for service)
Registrant's telephone number, including area code:
651-228-0935
Date of fiscal year end: December 31, 2007
Date of reporting period: December 31, 2007
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-l
under the Investment Company Act of 1940 (17 CFR 270.30e-l). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
CLEARWATER INVESTMENT TRUST
Financial Statements
December 31, 2007
(With Report of Independent Registered Public Accounting Firm Thereon)
Clearwater Investment Trust
February 2008
To: Our Unit Holders:
On December 31, 2007, the net asset value of the Clearwater Growth Fund was
$30.57 per unit. The net asset value of the Clearwater Small Cap Fund was $16.68
per unit. On a total return basis for 2007, the Clearwater Growth Fund increased
by 5.4% versus the Russell 1000 increase of 5.8%, while the Clearwater Small Cap
Fund increased by 3.1% versus the Russell 2000 decrease of -1.6%. For the fourth
quarter, the Clearwater Growth Fund decreased by -3.3%, versus the Russell 1000
decrease of -3.2%, while the Clearwater Small Cap Fund decreased by -5.2% versus
an decrease of -4.6% for the Russell 2000.
On December 31, 2007 the net asset value of the Clearwater Tax-Exempt Bond Fund
was $9.64 per unit. On a total return basis for 2007 the fund increased 0.6%
with a fourth quarter return of -0.6%. For comparative purposes, the Lehman
5-Year Municipal Bond Index increased 5.1% for the year with a 1.9% increase in
the fourth quarter.
Parametric Portfolio Associates, the sub-advisor for the Clearwater Growth Fund,
made the following comments:
After years of interest rates dominating the thoughts of investors, credit
quality became the chief concern of the equity markets during the fourth
quarter. The subprime-led devaluation of mortgage-backed debt significantly
impacted the balance sheets of some of the largest financial institutions in the
world, with much of this publicly disclosed in the last three months of the
year. The ill effects spilled over into the broader stock market, with the S&P
500 Index down -3.3% for the quarter. Still, the S & P 500 finished the year
with a 5.5% gain.
Utilities were the best performing sector in the fourth quarter, up 7.6%. Energy
also performed well, up 4.6%, as crude oil prices continued to set record highs,
now approaching $100/barrel. Financials were the worst performing sector, down
- -14.3%, as thrifts, mortgage finance and consumer finance stocks were routed as
a result of the subprime-induced credit crisis. Consumer discretionary stocks
also continued their decline from the third quarter, down -10%, as consumers
deferred their purchases of big ticket items like cars, appliances and luxury
goods. Small-cap stocks trailed large and mid-cap stocks for the third quarter
in a row (S&P SmallCap 600 Index, -6.4%; S&P MidCap 400 Index, -2.7%), and
finished the year in negative territory. Growth outperformed value (S&P
500/Citigroup Growth Index, -1.3%; S&P 500/Citigroup Value
Index, -5.4%), as investors moved away from the financial and cyclical stocks
that dominate the Value Index.
There is much uncertainty for stocks in the coming year: a fragile economy, $100
oil, a housing market in decline, and the presidential elections all weighing
heavily on the minds of investors. An ambiguous Federal Reserve is adding to
investor nervousness. After slowly reducing interest rates in the fourth
quarter, the Federal Reserve is under pressure to reduce interest rates further
to avoid recession, but they may be forced to maintain interest rates to contain
inflation. Among this uncertainty, our broadly diversified, sector-neutral Tax
Managed Core portfolios should provide a great opportunity to capture the next
market leaders, while doing so in a tax efficient manner.
Comparison of the Change in Value of a $10,000 Investment in the Clearwater
Growth Fund and the Russell 1000 Index
Past performance is not predictive of future performance. The graph and table do
not reflect the deduction of taxes that you would pay on fund distributions or
the redemption of future shares.
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Total Return One Year Five Year Ten Year
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Growth Fund 5.4% 13.1% 6.4%
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Russell 1000 5.8% 13.4% 6.2%
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[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Growth Fund Russell 1000
12/31/1997 $ 10,000 $ 10,000
12/31/1998 $ 12,269 $ 12,702
12/31/1999 $ 15,249 $ 15,359
12/31/2000 $ 14,938 $ 14,162
12/31/2001 $ 12,969 $ 12,399
12/31/2002 $ 10,079 $ 9,714
12/31/2003 $ 13,053 $ 12,618
12/31/2004 $ 14,560 $ 14,057
12/31/2005 $ 15,416 $ 14,938
12/31/2006 $ 17,692 $ 17,248
12/31/2007 $ 18,641 $ 18,244
The Russell 1000 Index is a capitalization-weighted total return index composed
of the largest 1,000 U.S. companies.
The Clearwater Small Cap Fund is advised by two subadvisors: Kennedy Capital
Management and Keeley Capital Management. For the year ended December 31, 2007,
the return for the Fund as a whole was 3.1 %. The weight of each subadvisor and
their performance was:
---------------------------------------
One Year Return Weight
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Kennedy 2.6% 79%
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Keeley 12.1% 21%
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Kennedy Capital Management, one of the sub-advisors to the Clearwater Small Cap
Fund, made the following comments about the market and their portion of the
portfolio:
Performance
Small Cap stocks underperformed the broader market in both the second half (H2)
and full year, as the Russell 2000 Index posted a negative 7.53% return in the
(H2) and a slight loss (-1.57%) over the year.
Once again, we were able to maintain our outperformance this year, despite
declining somewhat more than the benchmark in H2. Our portion of the Clearwater
Small Cap Fund generated a net loss of 7.86% in H2 and positive returns of 2.62%
for the year.
Performance Attribution
Overall, the impact of sector weightings in our portion of the Fund in the
second half of 2007 added 39 basis points of performance while stock selection
led to an 81 basis point drain on relative performance. Shortfalls in our
Technology and Healthcare selections were offset by a strong positive
performance in Materials & Processing.
Leading Russell 2000 Index sectors in H2 included Healthcare and Energy,
returning 9.52% and 3.65%. Both sectors were capping year-long market-leading
performance (+13.67% and +18.10%, respectively), while other sectors in 2007,
such as Autos & Transport (-10.83%), Consumer Discretionary (-10.64%), and
Financial Services (-16.71%) weighed heavily on the small cap market. Our
underweight in Financial Services (6.95% less than the benchmark) and our
overweight in Materials & Processing (+2.8%) were outgrowths of our bottom-up
process that uncovered minimal investable ideas in the former and a plethora of
opportunities in the latter.
As to individual stock selection, we were most off-base with Trident
Microsystems Inc., which produces integrated circuits for LCD TVs and other
digital applications. In late October, this 1.6% position reported in-line
results but provided disappointing guidance. Increased competition in the higher
end flat panel market was the main culprit. Consequently, although Trident's
fundamentals appear reasonably solid and the company's cash cushion is strong,
near-term earnings prospects are below expectations. In the current market,
disappointments are punished severely.
On the plus side, a healthcare name and a government IT name contributed equally
to our success in H2. Centene Corporation, a St. Louis-based company which
manages Medicaid programs throughout the country, seized the opportunity to
capitalize on state
privatization trends. ICF International Inc., which won a contract to manage the
State of Louisiana's Road Home project, drove significant revenue and earnings
growth in 2007 through solid execution.
The Process
Our team of 15 analysts continually works to uncover strong management teams and
companies with improving returns, above-average cash flow generation, and
opportunities to advantageously deploy excess cash flow.
In tumultuous markets like these, the importance of deep fundamental due
diligence comes to the fore. We have continued to intensify our research
efforts, emphasizing company and third party contacts, as well as facilitating
amongst our analysts, portfolio managers, and traders.
As economic uncertainty grows, we've found that the market focuses on the
near-term while we diligently focus on companies creating long-term value, as it
is our experience that generates portfolio outperformance. It does, however,
drive us to sharpen our pencils when evaluating short-term earnings trends for
our universe of qualified investment candidates.
Current Perspective and Portfolio Construction
As we've continued to emphasize, we maintain a "bottom-up" perspective on
portfolio construction; however, we remain cognizant of the significant
macroeconomic changes impacting the global economy.
The weakening US Dollar has led us to gradually shift weightings towards sectors
and stocks with more of an export focus (e.g., Rockwood Holdings and Greif, Inc.
within the Materials & Processing sector).
We've worked to uncover secular trends which are likely to overwhelm consumer
and financial challenges (e.g., Kendle International Inc., an organization that
directly benefits from continued outsourcing of research by big pharma).
As always, we look for opportunities created when the "baby is thrown out with
the bathwater." An example of this would be Heidrick & Struggles International,
Inc. ("HSII"), an executive recruiting firm that has been categorized with the
rest of the staffing firms that are inevitably hurt by falling jobs growth.
HSII's fortunes in our opinion, though, are driven by executive churn, which
tends to rise in challenging times.
Outlook
Overall, our portfolio valuations remain attractive relative to the Russell 2000
Index, as measured by a number of metrics, including Price/Earnings, Price/Book,
Price/Sales, and, importantly, Price/Cash Flow. Additionally, sales growth,
earnings growth, and return on
assets for our collection of companies have been greater than those of the
benchmark. We continue our commitment to managing well-diversified portfolios on
behalf of our clients, with approximately 90-115 positions, representing a broad
array of growth and value. We feel that our fundamental research process
positions us well to meet the challenges and capture opportunities for our
clients in 2008.
Keeley Capital Management: the other sub-advisor to the Clearwater Small Cap
Fund, made the following comments:
Market Overview
The year 2007 proved to be challenging; marked by uneven economic growth,
volatile markets, and a credit crunch arising from weakness in housing. The U.S.
economy experienced mixed results, enjoying two quarters of strong growth in the
spring and summer before turning sluggish during the latter half of 2007. The
Federal Reserve responded sharply to restore confidence and improve investor
sentiment that was affected by the losses related to subprime mortgage
securities. From September to December, the Fed lowered interest rates three
times and continued to indicate their willingness to lower rates in the future
if necessary.
Stock market performance, while extremely volatile, proved to be impressive
given the headwinds of a poor housing market and sharply higher energy prices. A
strong first half of the year was quickly followed by a tumultuous summer, as a
rapid aversion to risk emerged in response to the subprime related credit
squeeze. Since the market recovery that began in 2003, stocks experienced their
first true correction of this cycle, defined as a decline of at least 10
percent, between mid-October and late November. For the year, larger companies
outperformed smaller, and growth stocks outperformed value.
Portfolio Attributes
The strong relative performance of 12.1% for the portion we managed was
primarily driven by stock selection in Consumer Staples (24.4% versus 4.01% for
the benchmark), Energy (24.38% versus 16.32% for the benchmark), Industrials
(37.35% versus 1.68% for the benchmark), and Utilities (15.95% versus -2.47% for
the benchmark). From a sector weight perspective, our portion of the portfolio
continues to be over-weight Industrials and Energy. Both of these over-weights
have contributed positively to the relative out-performance achieved.
Additionally, our portion of the portfolio continues to be under-weight
Financials, which also contributed to the relative out-performance. It is
important to note, that, as part of our investment philosophy, the portfolio
will tend to be under-weight sectors with a short product life-cycle.
Accordingly, our portion of the portfolio was under-weight Health Care, which
negatively impacted the portfolio. In addition, our portion of the portfolio was
under-weight Information Technology and Telecomm Services both of which helped
the portfolio during the quarter.
Outlook
Our portion of the portfolio continues to under-weight Financials. It is our
intention to consider the reentry of this space over the next 12 to 18 months.
We continue to be very strongly in favor of Energy, Industrials, Materials and
Utilities. Within this environment, we continue to look for ideas within our
five investment themes that focus on companies undergoing corporate
restructuring. We remain committed to our value driven strategy and our research
staff is excited about a number of potential opportunities.
Comparison of the Change in Value of a $10,000 Investment in the Clearwater
Small Cap Fund and the Russell 2000 Index
Past performance is not predictive of future performance. The graph and table do
not reflect the deduction of taxes that you would pay on fund distributions or
the redemption of future shares.
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Total Return One Year Five Year Ten Year
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Small Cap Fund 3.1% 20.4% 12.9%
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Russell 2000 -1.6% 16.3% 7.1%
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[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Small Cap Fund Russell 2000
12/31/1997 $ 10,000 $ 10,000
12/31/1998 $ 9,291 $ 9,745
12/31/1999 $ 11,828 $ 11,817
12/31/2000 $ 13,092 $ 11,460
12/31/2001 $ 14,835 $ 11,745
12/31/2002 $ 13,312 $ 9,339
12/31/2003 $ 21,121 $ 13,752
12/31/2004 $ 25,535 $ 16,273
12/31/2005 $ 27,895 $ 17,014
12/31/2006 $ 32,654 $ 20,135
12/31/07 $ 33,676 $ 19,824
The Russell 2000 Index is a capitalization - weighted total return index of the
2,000 smallest companies in the Russell 3000 Index.
SIT Investment Associates: the sub-advisor for the Clearwater Tax-Exempt Bond
Fund, made the following comments:
2007 was a tale of two halves for the fixed income markets. The first half of
the year was moderate, as the Federal Reserve stayed on the sideline,
maintaining the federal funds rate at 5.25%. Returns for both taxable and
tax-exempt indices were generally less than 1 percent. In July, however, fixed
income markets began to experience a severe liquidity crunch, brought on by
weakness in subprime mortgage-backed securities, which permeated every sector of
the fixed income markets except for U.S. Treasuries. U.S. Treasuries rallied
considerably in the second half of the year, as growth appeared to slow,
investors sought higher quality and the Fed eased, reducing the federal funds
rate to 4.25% at year-end. The U.S. Treasury and municipal yield curves
steepened considerably during the second half of the year. Long-term Treasury
yields finished the year about 35 basis points lower, while short-term yields
fell about 175 basis points. Long-term municipal yields actually rose about 25
basis points during 2007, while short-term yields fell close to 100 basis
points. Heavy issuance in the government and municipal markets continued, and
while demand was not as strong as in 2006, it was able to absorb the supply. The
Fed eased another 125 basis points in January, and yield curves steepened
further. Many in the market now believe that the Fed is near the end of its
easing cycle, although it certainly left room to ease further in future months.
Slow growth in the domestic economy accompanied by a still troublesome federal
budget deficit, with moderate and apparently contained inflation despite high
oil prices support this expectation. However, any evidence of slower growth
could be met with further short-term interest rate cuts. We expect the Fed to do
some modest additional easing during the first half of 2008.
The trend of revenue bonds outperforming general obligation bonds halted
abruptly during 2007, and higher quality issues outperformed those of lower
credit quality, as investors favored quality and certainty in bond structures
over yield. We expect revenue bonds to be strong performers in 2008, however, as
the Fed's easing should help allay liquidity concerns in the market, and
investor focus returns to yield. General obligation bond performance should
weaken on a relative basis, however, as many cities, counties and states may
experience revenue shortfalls with the slowing economy and weakness in the
housing sector. Potential problems funding retirement pension and healthcare
obligations still persist. The Fund's performance, with its heavy emphasis on
revenue bonds, was weak on an absolute basis due to the sectors and structures
in which it was invested, despite its neutral duration, primarily due to its use
of non-rated revenue bonds, whose spreads widened considerably with the flight
to quality in the municipal market. Non-rated and rated revenue bonds
significantly enhance total return performance in periods of stable or rising
interest rates, but often underperform in an environment of rapidly falling
rates, which is what the market and the Fund experienced in the second half of
2007.
The economy has now produced twenty-five consecutive quarters of solid growth,
although the fourth quarter of 2007 was quite weak. We expect growth to rebound
in the
second half of 2008, as Fed easing and the federal government's proposed
stimulus plan take effect. With the Fed poised to ease further and the subprime
mortgage mess still unwinding, interest rates are likely to be volatile over the
first half of the year. The Treasury yield curve should remain relatively steep,
with the municipal curve somewhat steeper. Given our expectation that the Fed is
close to done with its easing, we lengthened the Fund's average life duration, a
measure of the Fund's sensitivity to changes in interest rates, from 3.9 to 4.6
years during the year, accompanied by a meaningful increase in yield. For
comparison, the Fund's benchmark, the Lehman 5-Year Municipal Bond Index, had
duration of 4.1 years at December 31, 2007. The Fund's slightly longer duration
and its use of non-rated bonds have positioned it opportunistically for the
uncertain interest rate environment that we expect in 2008. We expect to
lengthen duration a bit further during the first half of 2008. The Fund's strong
yield (its 12-month distribution rate improved to 4.70% at December 31) should
continue to produce high tax-exempt income for its shareholders in the current
and expected market environment. Investment of new cash flows will be focused on
maturities in the 5-25 year range.
Comparison of the Change in Value of a $10,000 Investment in the Clearwater
Tax-Exempt Bond Fund and the Lehman Brothers 5-Year Muncipal Bond Index
Past performance is not predictive of future performance. The graph and table do
not reflect the deduction of taxes that you would pay on fund distributions or
the redemption of future shares.
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Inception
Total Return One Year Five Year 1/14/2000
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Tax-Exempt Bond Fund 0.6% 3.7% 5.2%
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Lehman 5 Yr Muni 5.1% 3.2% 4.9%
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[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Lehman 5-Year
Tax-Exempt Municipal Bond
Bond Fund Index
1/14/2000 $ 10,000 $ 10,000
12/31/2000 $ 10,890 $ 10,772
12/31/2001 $ 11,549 $ 11,441
12/31/2002 $ 12,370 $ 12,502
12/31/2003 $ 12,882 $ 13,017
12/31/2004 $ 13,406 $ 13,372
12/31/2005 $ 14,017 $ 13,499
2/31/2006 $ 14,765 $ 13,949
12/31/07 $ 14,858 $ 14,665
The Lehman Brothers 5-Year Municipal Bond Index consists of issues with a
maturity of 4-6 years, a minimum credit rating of at least Baa, have been issued
as part of a deal of over $50 million, and have been issued within the last five
years.
Clearwater Investment Trust Clearwater Management Company
- ------------------------------------------ -------------------------------------
G. H. Weyerhaeuser, Jr., President and CEO P. W. Pascoe, Chairman and Treasurer
L. R. Jones W.T. Weyerhaeuser, V.P. and Secretary
C. W. Rasmussen S. B. Carr, Jr.
L. Rasmussen W. J. Driscoll
F. T. Weyerhaeuser E. D. Hlavka
C. W. Morley
F. W. Piasecki
D. C. Titcomb
EXECUTIVE OFFICERS AND TRUSTEES
Information About the Funds' Independent Trustees
- ---------------------------------------------------------------------------------------------------------------------------
Number of
Principal Portfolios in the
Term of Office Occupation(s) Fund Complex Other
Name, Address, and Positions Held and Length of During the Last 5 Overseen by the Directorships Held
Age with the Funds Time Served Years Trustee by the Trustee
- ---------------------------------------------------------------------------------------------------------------------------
Lucy R. Jones Trustee Tenure: 7 yrs Private Investor 3 None
(66) Term:
Indefinite
30 East 7th Street,
Saint. Paul,
Minnesota 55101
- ---------------------------------------------------------------------------------------------------------------------------
Charles W. Trustee Tenure: 7 yrs President and 3 None
Rasmussen (40)(1) Term: Chief Executive
Indefinite Officer, P&G
30 East 7th Street, Manufacturing,
Saint. Paul, Inc. (air
Minnesota 55101 filtration
equipment,
2002-Present);
- ---------------------------------------------------------------------------------------------------------------------------
Laura E. Trustee Tenure: 7 yrs Private Investor 3 None
Rasmussen (44)(1) Term:
Indefinite
30 East 7th Street,
Saint. Paul,
Minnesota 55101
- ---------------------------------------------------------------------------------------------------------------------------
(1) Mr. Rasmussen and Ms. Rasmussen are spouses-in-law, and are nieces or
nephews of Mr. F. T. Weyerhaeuser (see below).
EXECUTIVE OFFICERS AND TRUSTEES
Information About the Funds' Officers and Interested Trustee
- ---------------------------------------------------------------------------------------------------------------------------
Number of
Principal Portfolios in the
Term of Office Occupation(s) Fund Complex Other
Name, Address, and Positions Held and Length of During the Last 5 Overseen by the Directorships Held
Age with the Funds Time Served Years Trustee by the Trustee
- ---------------------------------------------------------------------------------------------------------------------------
George H. Trustee, As Trustee; Senior Vice 3 None
Weyerhaeuser, Jr. Chairman, Chief Tenure: 2 yr President,
(54) Executive Officer Term: Indefinite Technology,
and Treasurer Weyerhaeuser
Company (1998 -
2006)
30 East 7th Street, As Officer; Director,
Saint. Paul, Tenure: 2 yr Clearwater
Minnesota 55101 Term Expires: Management Company
December, 2008 (1987-2006)
- ---------------------------------------------------------------------------------------------------------------------------
Frederick T. Trustee, Vice As Trustee; Private Investor 3 Potlatch
Weyerhaeuser (76)(1) President and Tenure: 20 yrs Corporation
Secretary Term: Indefinite (1960-2003)
30 East 7th Street, As Officer;
Saint. Paul, Tenure: 20 yrs
Minnesota 55101 Term Expires:
December, 2008
- ---------------------------------------------------------------------------------------------------------------------------
(1) Mr.F.T. Weyerhaeuser is an interested trustee due to his daughter's
position as a director of Clearwater Management Company, the Funds' adviser.
Shareholder Expense Example
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.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period from July 1, 2007 to December 31, 2007.
Actual Expenses
The first section of the table below provides information about actual account
values and actual expenses. You may use the information in this section,
together with the amount you invested, to estimate the expenses that you
incurred over the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then multiply the
result by the number in the first section under the heading entitled "Expenses
Paid During the Period" to estimate the expenses attributable to your investment
during this period.
Hypothetical Example for Comparison Purposes
The second section of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. Thus, you should not use the hypothetical account
values and expenses to estimate the actual ending account balance or your
expenses for the period. Rather, these figures are provided to enable you to
compare the ongoing costs of investing in the Clearwater Funds and funds offered
by other organizations. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the second section of the table are meant
to highlight your ongoing costs only. Therefore, the second section of the table
is useful in comparing ongoing costs only, and will not help you compare the
relative total costs of the Clearwater Funds to funds that charge transaction
costs and/or sales charges or redemption fees.
-------------------------------------------------------
Expenses Paid
Ending Account During the Period*
Beginning Account Value July 1, 2007 thru
Actual Value December 31, December 31,
July 1, 2007 2007 2007
-------------------------------------------------------
Growth Fund $1,000.00 $ 983.20 $1.40
- --------------------------------------------------------------------------------------------------
Small Cap Fund $1,000.00 $ 929.60 $4.72
- --------------------------------------------------------------------------------------------------
Tax-Exempt Bond Fund $1,000.00 $ 995.50 $1.86
- --------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses)
- --------------------------------------------------------------------------------------------------
Growth Fund $1,000.00 $1,025.21 $1.43
- --------------------------------------------------------------------------------------------------
Small Cap Fund $1,000.00 $1,025.21 $4.95
- --------------------------------------------------------------------------------------------------
Tax-Exempt Bond Fund $1,000.00 $1,025.21 $1.89
- --------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratios, multiplied by the
average account value over the period, multiplied by 184/365 (to reflect the
one-half year period). The annualized expense ratios are as follows:
Growth Fund 0.28%
Small Cap Fund 0.97%
Tax-Exempt Bond Fund 0.37%
Quarterly Portfolio Schedule of Investments
The Funds file a complete schedule of their portfolio holdings as of the close
of the first and third quarters of their fiscal years with the SEC on Form N-Q.
Shareholders may request copies of Form N-Q free of charge by calling the
Transfer Agent toll free at 1-888-228-0935 or by sending a written request to:
Fiduciary Counselling, Inc, 30 East 7th Street, Suite 2000, St. Paul, MN 55101
Attn: Clearwater Investment Trust Transfer Agent. 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 Procedure ("Policies") that
the funds use to determine how to vote proxies relating to portfolio securities.
They also report, on Form N-PX, how the Funds voted any such proxies during the
most recent 12-month period ended June 30. Shareholders may request copies of
the Policies or Form N-PX free of charge by calling the Transfer Agent toll free
at 1-888-228-0935 or by sending a written request to: Fiduciary Counselling,
Inc, 30 East 7th Street, Suite 2000, St. Paul, MN 55101 Attn: Clearwater
Investment Trust Transfer Agent. Form N-PX is also available from the EDGAR
database on the SEC's Internet site at http://www.sec.gov.
Board Approval of the Investment Advisory Agreement and Subadvisory Contracts
Clearwater Management Company
Clearwater Management Company (CMC) is responsible for managing the investment
programs and strategies for the Growth Fund, Small Cap Fund and Tax-Exempt Bond
Fund. The Trustees agreed to retain CMC under the terms of the investment
advisory agreement dated March 1, 1998. The agreement will continue for one year
and is renewable for successive one-year periods.
The Trustees discussed the materials presented throughout the year and those
presented during the meeting in connection with the annual advisory agreement
renewal with Clearwater Management Co. Inc. (CMC). The board based its decision
on the information contained in the materials presented. The Trustees considered
the factors discussed below among others. No single factor determined whether or
not the agreement would be renewed but rather the totality of factors considered
was determinative.
Nature, Extent and Quality of Services Provided
The Trustees considered the nature and quality of the services provided by CMC
since 1987. The Trustees considered the quality of the due diligence work that
CMC performs on the sub-advisers and noted the good reputation that the CMC
board has with the shareholder base. They also noted their approval of the
various ideas for enhancements and adjustments to the funds made by CMC. The
Trustees considered reports presented to them which demonstrate CMC's compliance
with both its and the fund's compliance policies and procedures and Codes of
Ethics. Based on their analysis of the data presented, the Trustees concluded
that they were pleased with the nature and quality of the service provided.
Investment Performance
The Trustees considered the work performed by CMC in monitoring the investment
performance of the various sub-advisers. They noted their approval of the
investment performance of the funds compared to other funds with similar
objectives. The Trustees concluded that they were pleased with the services that
CMC provided regarding the investment performance of the funds.
Cost of Services
The Trustees reviewed the fees paid to CMC. They noted their appreciation that
CMC has negotiated the best deal possible with the sub-advisers regarding their
fees. They were also pleased with CMC's willingness to limit their profitability
through voluntary fee reductions, including the most recent waiver effective
April 1, 2007. It was also noted that CMC charges a fixed fee which results in
fewer cost fluctuations and willingly pays certain expenses that are normally
borne by the shareholders, namely the Fidelity transaction fee. The Trustees
concluded that they were pleased with the cost of services paid to CMC, noting
that the fee is very reasonable for the services provided.
Parametric Portfolio Associates
Parametric Portfolio Associates (Parametric) is responsible for managing the
investment program and strategies for the Growth Fund. The Trustees agreed to
retain Parametric under the terms of the subadvisory contract dated September
20, 2001. The agreement will continue for one year and is renewable for
successive one-year periods.
The Trustees considered the materials presented throughout the year and based
their decision on that information, including the most recent evaluation of
Parametric's investment staff, portfolio management process and fund
performance. The Trustees considered the factors discussed below among others.
No single factor determined whether or not the agreement would be renewed but
rather the totality of factors considered was determinative.
Nature, Extent and Quality of Services Provided
The trustees considered the depth and experience of the Parametric organization.
Parametric was founded in 1987 and currently has assets under management of
$24.4 billion and employs a team of twenty-two investment professionals. They
specialize in index-based and structured equity strategies and are considered
the industry leader in tax-efficient portfolio management. Parametric uses a
quantitative, technology driven process that can be highly automated. Parametric
has been managing the Growth Fund since 1997 and has had four ownership changes
during this timeframe. Brian Langstraat is the Chief Executive Officer and he
has been with Parametric since 1990. Brook Beresh manages the portfolio. The
investment objective of the Clearwater Growth Fund is to achieve long-term,
broad, diversified exposure to the U.S. equity market in a tax-efficient and low
cost manner. The portfolio targets the Russell 1000 index. The trustees also
considered reports presented to them which demonstrate Parametric's compliance
with both its and the fund's compliance polices and procedures and codes of
ethics. Based on their analysis of the data presented, the trustees concluded
that they were pleased with the nature and quality of the services provided.
Investment Performance
The trustees considered the fund's performance in the short and intermediate
terms as well as since inception. They compared the fund's performance to
relevant benchmarks and peer groups and noted that the returns have met
expectations in recent years. They paid particular attention to the performance
reports prepared for their consideration by the fund's transfer agent and
shareholder service provider that demonstrated consistent performance relative
to the benchmark and noted that the tax efficiency targets have been met or
exceeded. It was noted that the tracking error has been significantly below the
stated benchmark of 1.5% and is currently at 0.4%.
Cost of Services
The trustees made a comparative analysis of the fund's subadvisory fee relative
to similar funds as well as other institutional investment accounts. The
trustees noted that
management fees charged by most advisers directly managing a fund's portfolio
(i.e. not via hiring a subadviser to manage the portfolio) also covers
significant administrative services not required of Parametric. Parametric
charges a fee based on assets under management on a sliding scale ranging from
45 basis points on the first $1 million under management to 10 basis points on
assets in excess of $75 million. It was noted that trading costs are
exceptionally low as is typical for a tax-managed account. The management
expense as a percentage of average assets under management in 2007, the time
period examined by the trustees, was 15 basis points or 0.15%. The trustees
relied on presentations by the fund's transfer agent and shareholder servicing
provider comparing Parametric's management fee to its relevant peer groups both
within the investment company universe and within the institutional investor
universe in general. Such presentations relied on reports published by
Morningstar. This analysis led the trustees to determine that the fees charged
to the fund were fair and reasonable in light of the high quality services
tailored specifically to the fund's circumstances. Additionally, the trustees
relied, in making their decision, on Parametric's representation that the fee
charged is less than a new client would pay. The trustees also noted that the
fee charged by Parametric when combined with all other fund expenses resulted in
an overall expense ratio to the fund of .28% of average net assets versus the
industry average for large cap domestic funds of 0.99% according to fund
analysis company Morningstar, Inc.
Management Profitability
The trustees did not consider the profitability of Parametric resulting from its
relationship with the fund. The fund's situation is different from that where
the portfolio is managed by the sole adviser, which established, promotes and
markets the fund as a method of increasing its assets under management and,
therefore, its profitability. Parametric is an independent firm and the advisory
fee charged is the result of arm's length bargaining between Parametric and the
fund's adviser under the supervision of the trustees.
Economies of Scale
The trustees considered whether the fund could enjoy economies of scale as it
grows as a result of Parametric realizing economies of scale. Due to the
quantitative, technology-driven service that can be highly automated, it was
determined that there is no natural limit to the assets that they could manage
under this approach. Also, since the current fee charged by Parametric (.15%) is
lower than their general fee schedule (.20%), there are no benefits to be seen
regarding reducing fees. Based on the above, the trustees determined that
further economies of scale resulting from the relationship with Parametric were
not a consideration in that the fee is already low.
Kennedy Capital Management
Kennedy Capital Management (Kennedy) is responsible for managing a portion of
the investment program and strategies for the Small Cap Fund. The Trustees
agreed to retain Kennedy under the terms of the subadvisory contract dated April
16, 1999. The agreement will continue for one year and is renewable for
successive one-year periods.
The Trustees considered the materials presented throughout the year and based
their decision on that information, including the most recent evaluation of
Kennedy's investment staff, portfolio management process and fund performance.
The Trustees considered the factors discussed below among others. No single
factor determined whether or not the agreement would be renewed but rather the
totality of factors considered was determinative.
Nature, Extent and Quality of Services Provided
The trustees considered the depth, experience and organizational stability of
the Kennedy Capital organization. Kennedy has been managing investment
portfolios since 1980 with total assets under management of $4.4 billion and
employs a team of twenty-six investment professionals, including 15 analysts.
They provide active small cap domestic security selection with 95% institutional
and 5% high net worth clients. Kennedy has had a number of management changes
over the years and is currently headed by Randy Kirkland, President and CEO.
Dick Sinise and Donald Cobin are the co-portfolio managers of the small cap
portion of the portfolio and Tim Hasara is the portfolio manager for the micro
cap portion. Dick Sinise co-founded Kennedy in 1981 and has been one of the
co-portfolio managers on the fund for most of the time since 1974. Donald Cobin,
CFA, has 14 years of investment experience and has served previously as a
portfolio manager, director of research, and analyst. Tim Hasara has 13 years of
experience as an investment analyst and portfolio manager at Kennedy. Kennedy
Capital is research-intensive and narrowly focused on small cap equities. Their
process has evolved since they were originally hired to manage the fund in 1994
into a very sophisticated set of fundamental criteria that captures the
contrarian philosophy of the firm's founders. This has resulted in investment
returns well above both the fund's peers and its comparable indices. The
trustees also considered reports presented to them which demonstrate Kennedy's
compliance with both its and the fund's compliance polices and procedures and
codes of ethics. Based on their analysis of the data presented, the trustees
concluded that they were pleased with the nature and quality of the services
provided.
Investment Performance
The trustees considered the fund's performance in the short and intermediate
terms as well as since inception. They compared the fund's performance to
relevant benchmarks and peer groups and noted that the returns have exceeded
expectations. They paid particular attention to the performance reports prepared
for their considerations by the fund's transfer agent and shareholder service
provider that demonstrated solid relative performance against both the small-cap
and micro-cap universes. Kennedy has continued to achieve investment performance
that ranks in the top quartile of similar managers. Trading continues to be a
strength for Kennedy. Abel-Noser reports place their execution near the top of
their peer group. Tax efficiency is not a high priority for Kennedy, but the
portfolio manager does review the portfolio for tax-loss harvesting
opportunities and strives to hold securities long enough to achieve long-term
gain status. Due to their exceptional pre-tax returns, the minimal attention to
tax efficiency has not been a large drawback. The trustees concluded that they
were satisfied with Kennedy Capital's investment management performance.
Cost of Services
The trustees made a comparative analysis of the fund's subadvisory fee relative
to similar small cap funds as well as other institutional investment accounts.
The trustees noted that management fees charged by most advisers directly
managing a fund's portfolio (i.e. not via hiring a subadviser to manage the
portfolio) also cover significant administrative services not required of
Kennedy. Kennedy charges a fee based on assets under management on a sliding
scale ranging from 85 basis points on the first $50 million under management to
80 basis points on assets in excess of $50 million. The management expense as a
percentage of average assets under management in 2007, the time period examined
by the trustees, was 81 basis points or 0.81%. The trustees relied on
presentations by the fund's transfer agent and shareholder servicing provider
comparing Kennedy's management fee to its relevant peer groups both within the
investment company universe and within the institutional investor universe in
general. Such presentations relied upon reports published by Morningstar. This
analysis led the trustees to determine that the fees charged to the fund were
fair and reasonable in light of the high quality services provided.
Additionally, the trustees relied, in making their decision, on Kennedy's
representation that no client with a similar account was being charged a lesser
fee. The trustees also noted that the fee charged by Kennedy when combined with
all other fund expenses resulted in an overall expense ratio to the fund of
0.97% of average net assets versus the industry average for small cap domestic
funds of 1.22% according to fund analysis company Morningstar, Inc.
Management Profitability
The trustees did not consider the profitability of Kennedy resulting from its
relationship with the fund. The fund's situation is different from that where
the portfolio is managed by the sole adviser, which established, promotes and
markets the fund as a method of increasing its assets under management and,
therefore, its profitability. Kennedy is an independent firm and the advisory
fee charged is the result of arm's length bargaining between Kennedy and the
fund's adviser under the supervision of the trustees.
Economies of Scale
The trustees considered whether the fund could enjoy economies of scale as it
grows as a result of Kennedy realizing economies of scale. They found that there
was some room in the current fee schedule for Kennedy's fee, as a percentage of
assets under management, to go down slightly as a growing asset base moves the
overall percentage down from the current 81 basis points towards 80 basis
points. The trustees determined that further economies of scale resulting from
the relationship with Kennedy were not a major consideration given that the
relationship is the result of arm's length bargaining, most of the economies of
scale have already been realized and that the fee is already low--especially in
light of the quality of service provided.
Keeley Asset Management
Keeley Asset Management (Keeley) is responsible for managing a portion of the
investment program and strategies for the Small Cap Fund. The Trustees agreed to
retain
Keeley under the terms of the subadvisory contract dated August 1, 2006. The
agreement will continue for two years and is renewable for successive one-year
periods.
The Trustees considered the materials presented throughout the year and based
their decision on that information, including the most recent evaluation of
Keeley's investment staff, portfolio management process and fund performance.
The Trustees considered the factors discussed below among others. No single
factor determined whether or not the agreement would be renewed but rather the
totality of factors considered was determinative.
Nature, Extent and Quality of Services Provided
The trustees considered the depth, experience and organizational stability of
the Keeley Asset Management organization. Keeley has been managing investment
portfolios since 1982 with total assets under management of $8.9 billion and
employs a team of nine investment professionals. Keeley is headed by John L.
Keeley, Jr., who is its President, sole equity owner, and the fund's portfolio
manager. Their investment strategy is to invest in small to mid cap companies
undergoing internal corporate restructuring. This strategy is viewed as a
complement to the diversified small cap portfolio that is managed by Kennedy
Capital Management. Keeley favors industries with long product life cycles,
avoiding technology and healthcare. A typical portfolio will contain 60-70
holdings with each holding representing no more than 2% of the portfolio. Cash
positions range between 3-10% and the average portfolio turnover is
approximately 33%. Keeley regularly re-balances the portfolio in order to reduce
the holdings of appreciated stocks and to free cash for investment in
underweighted securities. The trustees also considered reports presented to them
which demonstrate Keeley's compliance with both its and the fund's compliance
polices and procedures and codes of ethics. Based on their analysis of the data
presented, the trustees concluded that they were pleased with the nature and
quality of the services provided.
Investment Performance
The trustees considered the subadviser's performance in the short period since
inception. They compared the fund's performance to relevant benchmarks and peer
groups. They paid particular attention to the performance reports prepared for
their considerations by the fund's transfer agent and shareholder service
provider. The trustees concluded that they were satisfied with Keeley's
investment management performance to date but will continue to monitor closely
due to the short-term history with Clearwater.
Cost of Services
The trustees made a comparative analysis of the fund's subadvisory fee relative
to similar small cap funds as well as other institutional investment accounts.
The trustees noted that management fees charged by most advisers directly
managing a fund's portfolio (i.e. not via hiring a subadviser to manage the
portfolio) also cover significant administrative services not required of
Keeley. Keeley charges a fee based on assets under management on a sliding scale
ranging from 100 basis points on the first $2 million under management to 70
basis points on assets in excess of $10 million. The trustees relied on
presentations
by the fund's transfer agent and shareholder servicing provider comparing
Keeley's management fee to its relevant peer groups both within the investment
company universe and within the institutional investor universe in general. Such
presentations relied upon reports published by Morningstar. This analysis led
the trustees to determine that the fees charged to the fund were fair and
reasonable in light of the high quality services provided.
Management Profitability
The trustees did not consider the profitability of Keeley resulting from its
relationship with the fund. The fund's situation is different from that where
the portfolio is managed by the sole adviser, which established, promotes and
markets the fund as a method of increasing its assets under management and,
therefore, its profitability. Keeley is an independent firm and the advisory fee
charged is the result of arm's length bargaining between Keeley and the fund's
adviser under the supervision of the trustees.
Economies of Scale
The trustees considered whether the fund could enjoy economies of scale as it
grows as a result of Keeley realizing economies of scale. They found that there
was some room in the current fee schedule for Keeley's fee, as a percentage of
assets under management, to go down as a growing asset base moves the overall
percentage.
Sit Fixed Income Advisers II
Sit Fixed Income Advisers II (Sit) is responsible for managing the investment
program and strategies for the Tax-Exempt Bond Fund. The Trustees agreed to
retain Sit under the terms of the subadvisory contract dated December 15, 1999.
The agreement will continue for one year and is renewable for successive
one-year periods.
The Trustees considered the materials presented throughout the year and based
their decision on that information, including the most recent evaluation of
Sit's investment staff, portfolio management process and fund performance. The
Trustees considered the factors discussed below among others. No single factor
determined whether or not the agreement would be renewed but rather the totality
of factors considered was determinative.
Nature, Extent and Quality of Services Provided
The trustees considered the depth, experience and organizational stability of
the Sit organization. Sit and its affiliates have been managing investment
portfolios since 1981 with total assets under management of $7.0 billion and
$5.0 billion in fixed income. Sit is a stable, well-capitalized organization and
has had no ownership changes. Mr. Michael C. Brilley, President and Senior Fixed
Income Officer and manager of the fund, has been in the investment management
business for over 38 years and has been with Sit since 1984. Mr. Paul J.
Jungquist, Vice President and Senior Fixed Income Portfolio Manager and Fixed
Income Credit Analyst and co-manager of the fund has been with Sit since 1994.
He specializes in non-rated securities. The portfolio managers adhere to a
research-intensive and disciplined investment process which, as discussed below,
has
resulted in sound investment returns at a level of volatility well below that of
both the fund's peers and its comparison indices. The trustees also considered
reports presented to them which demonstrate Sit's compliance with both its and
the fund's compliance polices and procedures and codes of ethics. Based on their
analysis of the data presented, the trustees concluded that they were pleased
with the nature and quality of the services provided.
Investment Performance
The trustees considered the fund's performance in the short and intermediate
terms as well as since inception. They compared the fund's performance to
relevant benchmarks and peer groups and noted that the combined risk-adjusted
returns have consistently met or exceeded expectations. They paid particular
attention to the performance reports prepared for their considerations by the
fund's transfer agent and shareholder service provider that demonstrated solid
relative and absolute performance.
Cost of Services
The trustees made a comparative analysis of the fund's subadvisory fee relative
to similar tax-exempt bond funds as well as other institutional investment
accounts. The trustees noted that management fees charged by most advisers
directly managing a fund's portfolio (i.e. not via hiring a subadviser to manage
the portfolio) also cover significant administrative services not required of
Sit. Sit charges a fee based on assets under management on a sliding scale
ranging from 40 basis points on the first $20 million under management to 20
basis points on assets in excess of $75 million. The management expense as a
percentage of average assets under management in 2007, the time period examined
by the trustees, was 23 basis points or 0.23%. The trustees relied on
presentations by the fund's transfer agent and shareholder servicing provider
comparing Sit's management fee to its relevant peer groups both within the
investment company universe and within the institutional investor universe in
general. Such presentations relied upon published reports from Morningstar. This
analysis led the trustees to determine that the fees charged to the fund were
fair and reasonable in light of the high quality services provided.
Additionally, the trustees relied, in making their decision, on Sit's
representation that no client with a similar account was being charged a lesser
fee. The trustees also noted that the fee charged by Sit when combined with all
other fund expenses resulted in an overall expense ratio to the fund of 0.37% of
average net assets versus the industry average for tax exempt bond mutual funds
of 0.64% according to fund analysis company Morningstar, Inc.
Management Profitability
The trustees did not consider the profitability of Sit resulting from its
relationship with the fund. The fund's situation is different from that where
the portfolio is managed by the sole adviser, which established, promotes and
markets the fund as a method of increasing its assets under management and,
therefore, its profitability. Sit is an independent firm and the advisory fee
charged is the result of arm's length bargaining between Sit and the fund's
adviser under the supervision of the trustees.
Economies of Scale
The trustees considered whether the fund could enjoy economies of scale as it
grows as a result of Sit realizing economies of scale. They found that there was
some room in the current fee schedule for Sit's fee, as a percentage of assets
under management, to go down as a growing asset base moves the overall
percentage down from the current 23 basis points towards 20 basis points. The
trustees determined that further economies of scale resulting from the
relationship with Sit were not a major consideration given that the relationship
is the result of arm's length bargaining, most of the economies of scale have
already been realized and that the fee is already low--especially in light of
the quality of service provided.
Report of Independent Registered Public Accounting Firm
The Board of Trustees and Shareholders
Clearwater Investment Trust:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of Clearwater Growth Fund, Clearwater Small Cap
Fund, and Clearwater Tax-Exempt Bond Fund (funds within Clearwater Investment
Trust) (the Funds) as of December 31, 2007, 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 in the five-year period then ended. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 2007, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Clearwater Growth Fund, Clearwater Small Cap Fund, and Clearwater Tax-Exempt
Bond Fund as of December 31, 2007, 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
in the five-year period then ended, in conformity with U.S. generally accepted
accounting principles.
/s/ KPMG LLP
February 27, 2008
CLEARWATER INVESTMENT TRUST
Statements of Assets and Liabilities
December 31, 2007
Growth Small Cap Tax-Exempt
Fund Fund Bond Fund
------------- ----------- -----------
Assets
Investments in securities, at fair value
(identified cost: $195,016,962 Growth Fund;
$251,886,553 Small Cap Fund; $351,982,642
Tax-Exempt Bond Fund) $ 331,702,743 262,025,076 340,023,399
Receivable for securities sold 1,339,637 4,652,134 --
Accrued dividend and interest receivable, less
the allowance for uncollectible interest
of $198,100 (Tax-Exempt Bond Fund) 468,354 319,861 4,722,964
------------- ----------- -----------
Total assets 333,510,734 266,997,071 344,746,363
------------- ----------- -----------
Liabilities
Payables for investment securities purchased -- 3,239,210 6,476,808
Payables for fund shares redeemed 2,282,711 16,104,847 564,192
Accrued investment advisory fee 236,855 666,013 310,344
------------- ----------- -----------
Total liabilities 2,519,566 20,010,070 7,351,344
------------- ----------- -----------
Net assets $ 330,991,168 246,987,001 337,395,019
============= =========== ===========
Capital
Capital stock and additional paid-in capital
(authorized unlimited number of shares at no
par value for each Fund: outstanding
10,826,716; 14,809,939; and 34,984,566
shares, respectively) $ 200,517,356 236,917,887 350,880,629
Undistributed net investment income (loss) 57,241 -- (4,179)
Accumulated net realized loss (6,269,210) (69,409) (1,522,188)
Unrealized appreciation (depreciation) of
investments 136,685,781 10,138,523 (11,959,243)
------------- ----------- -----------
Net assets $ 330,991,168 246,987,001 337,395,019
============= =========== ===========
Net asset value per share of outstanding
capital stock $ 30.57 16.68 9.64
See accompanying notes to financial statements.
2
CLEARWATER INVESTMENT TRUST
Statements of Operations
Year ended December 31, 2007
Growth Small Cap Tax-Exempt
Fund Fund Bond Fund
------------ ------------- -------------
Investment income:
Income:
Dividends (net of foreign taxes withheld
of $2,057, $455, and $0, respectively) $ 6,000,991 2,163,708 582,259
Interest 90,380 469,150 15,493,999
------------ ------------- ------------
Total income 6,091,371 2,632,858 16,076,258
------------ ------------- ------------
Expenses:
Investment advisory fee 1,455,591 3,655,672 1,881,961
Voluntary fee reduction (535,059) (1,009,854) (692,481)
------------ ------------- ------------
Total net expenses 920,532 2,645,818 1,189,480
------------ ------------- ------------
Net investment income (loss) 5,170,839 (12,960) 14,886,778
------------ ------------- ------------
Realized and unrealized gain (loss) on investments:
Net realized gain (loss) on security transactions 136,985 34,784,802 (1,013,835)
Unrealized appreciation (depreciation) during
the period 10,512,841 (26,981,490) (12,377,821)
------------ ------------- ------------
Net gain (loss) on investments 10,649,826 7,803,312 (13,391,656)
------------ ------------- ------------
Net increase in net assets
from operations $ 15,820,665 7,790,352 1,495,122
============ ============= ============
See accompanying notes to financial statements.
3
CLEARWATER INVESTMENT TRUST
Statements of Changes in Net Assets
Years ended December 31, 2007 and 2006
Growth Fund Small Cap Fund Tax-Exempt Bond Fund
---------------------------- ----------------------------- ----------------------------
2007 2006 2007 2006 2007 2006
---------------------------- ----------------------------- ----------------------------
Operations:
Net investment income (loss) $ 5,170,839 3,974,349 (12,960) (567,264) 14,886,778 12,229,199
Net realized gain (loss) on
investments 136,985 128,596 34,784,802 31,989,191 (1,013,835) 488,196
Unrealized appreciation
(depreciation) during the period 10,512,841 32,244,344 (26,981,490) 7,228,498 (12,377,821) 1,130,276
------------- ------------- -------------- ------------- ------------- -------------
Net increase in net assets
from operations 15,820,665 36,347,289 7,790,352 38,650,425 1,495,122 13,847,671
------------- ------------- -------------- ------------- ------------- -------------
Distributions to shareholders from:
Net investment income (5,154,945) (3,964,912) -- -- (14,920,314) (12,199,842)
Net realized gain on investments -- -- (35,634,818) (30,987,135) -- --
------------- ------------- -------------- ------------- ------------- -------------
Total distributions to
shareholders (5,154,945) (3,964,912) (35,634,818) (30,987,135) (14,920,314) (12,199,842)
------------- ------------- -------------- ------------- ------------- -------------
Capital share transactions:
Proceeds from shares sold 31,313,700 34,417,700 15,529,100 8,934,890 66,006,758 60,572,020
Reinvestment of distributions from
net investment income and gain 5,154,945 7,180,987 35,634,818 62,677,722 14,920,313 12,199,842
Payments for shares redeemed (7,656,170) (11,838,840) (30,178,531) (28,780,546) (13,851,638) (16,150,633)
------------- ------------- -------------- ------------- ------------- -------------
Increase in net assets from
capital shares
transactions 28,812,475 29,759,847 20,985,387 42,832,066 67,075,433 56,621,229
------------- ------------- -------------- ------------- ------------- -------------
Total increase (decrease)
in net assets 39,478,195 62,142,224 (6,859,079) 50,495,356 53,650,241 58,269,058
Net assets:
At the beginning of the year 291,512,973 229,370,749 253,846,080 203,350,724 283,744,778 225,475,720
------------- ------------- -------------- ------------- ------------- -------------
At the end of the year $ 330,991,168 291,512,973 246,987,001 253,846,080 337,395,019 283,744,778
============= ============= ============== ============= ============= =============
Undistributed net investment income
(loss) $ 57,241 41,347 -- -- (4,179) 29,357
See accompanying notes to financial statements.
4
CLEARWATER INVESTMENT TRUST
Notes to Financial Statements
December 31, 2007
(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 three series of
funds: Clearwater Growth Fund, Clearwater Small Cap Fund, and Clearwater
Tax-Exempt Bond Fund (the Funds). The Trust's declaration of trust permits
the Board of Trustees to create additional funds in the future. The
investment objective of the Clearwater Growth and Small Cap Funds is long
term capital growth. The investment objective of the Clearwater Tax-Exempt
Bond Fund is high current income that is exempt from federal income tax,
consistent with preservation of capital.
The Clearwater Growth Fund is passively managed to track but not replicate
the Russell 1000 Index (the Index), an unmanaged, capitalization weighted
index of the largest 1000 public companies in the United States. The Fund
is managed so that its holdings match the holdings of the Index as closely
as possible while attempting to minimize the realization of taxable gains.
This means that the Fund will not buy and sell securities to match changes
in the composition of securities in the Index. Instead, the Fund's
portfolio is adjusted periodically to reflect the holdings and weightings
of the Index, but only after consideration of the Fund's policy to
minimize realization of taxable gains.
The Clearwater Small Cap Fund invests primarily in equity securities of
issuers with market capitalizations, at the time of investment, no greater
than the range of capitalizations of the companies included in the Russell
2000 Index, an unmanaged, capitalization weighted index of the largest
3000 public companies in the United States less the largest 1000 tracked
by the Russell 1000 Index.
The Clearwater Tax-Exempt Bond Fund invests at least 80% of its assets in
municipal securities, which are debt obligations issued by or for the U.S.
states, territories and possessions, and the District of Columbia. The
interest on these securities is generally exempt from regular federal
income tax and may also be exempt from federal alternative minimum tax.
However, the Fund may invest up to 20% of its assets in securities that
generate interest income subject to federal alternative minimum tax.
(2) Summary of Significant Accounting Policies
The significant accounting policies followed by the Funds are as follows:
(a) Investments in Securities
Investments in equity securities are valued at the last sales price
on the principal exchange or market where they are traded. 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 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 the trading of which has been suspended) will be valued at
fair value as determined in good faith by the board of trustees,
although the actual computations may be made by persons acting
pursuant to the direction of the board.
(Continued)
5
CLEARWATER INVESTMENT TRUST
Notes to Financial Statements
December 31, 2007
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 and interest income, including
amortization of original issue discount and premium, is accrued
daily.
(b) 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 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, 2007, no provision for income tax would be required in
the Funds' financial statements. The Funds' federal and state income
and federal excise tax returns for the 2005 and 2006 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 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
during the years ended December 31, 2007 and 2006 was as follows:
Long-term
Tax-exempt Ordinary income capital gain
--------------------------- ------------------------- ----------------------------
2007 2006 2007 2006 2007 2006
------------ ------------ ----------- ----------- ------------ -------------
Growth Fund $ -- -- 5,154,945 3,964,912 -- --
Small Cap Fund -- -- 6,487,523 6,076,177 29,070,454 24,910,958
Tax-Exempt Bond Fund 14,887,748 12,135,102 32,566 64,740 -- --
(Continued)
6
CLEARWATER INVESTMENT TRUST
Notes to Financial Statements
December 31, 2007
Return of Capital
------------------
2007 2006
-------- -------
Growth Fund $ -- --
Small Cap Fund 76,840 --
Tax-Exempt Bond Fund -- --
As of December 31, 2007, the components of distributable earnings on a tax
basis were as follows:
Tax-Exempt
Growth Fund Small Cap Fund Bond Fund
------------- -------------- ------------
Undistributed ordinary income $ 57,241 -- 491,700
Undistributed capital gain -- -- --
Accumulated capital losses (6,061,423) -- (1,522,088)
Unrealized appreciation (depreciation) 136,477,994 10,069,114 (11,959,243)
------------- ---------- -----------
Total $ 130,473,812 10,069,114 (12,989,631)
============= ========== ===========
On the statements of assets and liabilities, due to permanent book-to-tax
differences, the following adjustments have been made:
Tax-Exempt
Growth Fund Small Cap Fund Bond Fund
------------- -------------- ------------
Undistributed net income $ -- $ 12,960 $ --
Accumulated net realized gains -- 63,880 --
Additional paid-in capital -- (76,840) --
(c) Distributions to Shareholders
Distributions to shareholders from net investment income, if any, are
declared annually for the Growth and Small Cap 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.
(d) Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles 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.
(e) Recent Accounting Pronouncements
On September 20, 2006, the Financial Accounting Standards Board (FASB)
released Statement of Financial Accounting Standards No. 157, Fair Value
Measurements (SFAS 157). SFAS 157 establishes an authoritative definition
of fair value, sets out a framework for measuring fair value,
(Continued)
7
CLEARWATER INVESTMENT TRUST
Notes to Financial Statements
December 31, 2007
and requires additional disclosures about fair value measurements.
The application of SFAS 157 is required for fiscal years beginning
after November 15, 2007 and interim periods within those fiscal
years. The impact of SFAS 157 on the Funds' financial statements is
being evaluated.
In June 2006, the FASB issued FASB Interpretation 48 (FIN 48),
Accounting for Uncertainty in Income Taxes. FIN 48 clarifies the
accounting for uncertainty in income taxes recognized in accordance
with FASB Statement No. 109, Accounting for Income Taxes. FIN 48
prescribes a two-step process to recognize and measure a tax
position taken or expected to be taken in a tax return. The first
step is to determine whether a tax position has met the
more-likely-than-not recognition threshold and the second step is to
measure a tax position that meets the threshold to determine the
amount of benefit to recognize. FIN 48 also provides guidance on
derecognition, classification, interest and penalties, accounting in
interim periods, disclosure, and transition. FIN 48 is effective for
mutual funds in the first required financial statement reporting
period for its fiscal year beginning after December 15, 2006. Tax
positions of the Funds have been evaluated to determine the impact,
if any, to the Funds. The adoption of FIN 48 did not have a material
impact on the Funds.
(3) Investment Security Transactions
Cost of purchases and proceeds from sales of securities, other than
temporary investments in short term securities, for the year ended
December 31, 2007, were as follows:
Purchases Sales
------------- ------------
Growth Fund $ 84,267,561 57,399,908
Small Cap Fund 292,381,460 316,070,009
Tax-Exempt Bond Fund 155,906,848 84,843,280
(4) Capital Share Transactions
Transactions in shares of each fund for the years ended December 31, 2007
and 2006 were as follows:
Growth Fund Small Cap Fund Tax-Exempt Bond Fund
----------------------- ----------------------- -----------------------
2007 2006 2007 2006 2007 2006
----------- --------- ---------- ---------- ---------- ----------
Sold $ 1,013,940 1,245,428 784,046 460,215 6,665,005 6,058,892
Issued for reinvested
distributions 168,628 258,093 2,136,380 3,408,010 1,508,770 1,219,204
Redeemed (247,568) (422,969) (1,680,388) (1,537,715) (1,399,865) (1,611,929)
----------- --------- ---------- ---------- ---------- ----------
Increase $ 935,000 1,080,552 1,240,038 2,330,510 6,773,910 5,666,167
=========== ========= ========== ========== ========== ==========
(Continued)
8
CLEARWATER INVESTMENT TRUST
Notes to Financial Statements
December 31, 2007
(5) Capital Loss Carry Over
For federal income tax purposes, the Growth Fund and Tax-Exempt Bond Fund
have capital loss carryovers of $6,061,423 and $1,522,088, respectively,
at December 31, 2007, which, if not offset by subsequent capital gains,
will expire as follows:
Tax-Exempt
Growth Fund Bond Fund
----------- ----------
Year of expiration:
2010 $ 5,878,353 --
2012 -- --
2013 183,070 508,252
2014 --
2015 -- 1,013,836
----------- ----------
Total $ 6,061,423 1,522,088
=========== ==========
(6) Expenses and Related-Party Transactions
The Trust has a contract for investment advisory services with Clearwater
Management Company (CMC), a management firm of which the Trust's President
and Treasurer is a shareholder. Under terms of an agreement, Clearwater
Growth Fund, Clearwater Small Cap Fund, and Clearwater Tax-Exempt Bond
Fund pay a fee equal to an annual rate of 0.45%, 1.35%, and 0.60% of
average net assets, respectively. CMC is responsible for the payment or
reimbursement of all the Funds' expenses, except brokerage, taxes,
interest, and extraordinary expenses. On July 1, 2002 CMC voluntarily
reduced the fees paid by the funds to 0.39%, 1.33%, and 0.56%,
respectively. Effective April 1, 2004 CMC made an additional voluntary fee
reduction to 0.37%, 1.20%, and 0.50%, respectively. Effective April 1,
2005 CMC voluntarily reduced the fees paid by the funds to 0.35%, 1.12%,
and 0.47%, respectively. Effective April 1, 2006 CMC voluntarily reduced
the fees paid by the funds to 0.30%, 1.00%, and 0.41%, respectively.
Effective April 1, 2007 CMC voluntarily reduced the fees paid by the funds
to 0.28%, 0.97%, and 0.37%, respectively. These voluntary fee reductions
may be discontinued at any time.
CMC has entered into sub advisory contracts with independent investment
advisory firms for each fund to provide daily investment management
services. The sub advisory fee for the Clearwater Growth Fund, payable to
Parametric Portfolio Associates, is equal to an annual rate of 0.15% of
net assets. The subadvisory fee for the Clearwater Small Cap Fund, payable
to Kennedy Capital Management, Inc., is equal to an annual rate of 0.85%
of the first $50 million in net assets it manages and then decreasing to
0.80% of net assets in excess of $50 million. The subadvisory fee for the
Clearwater Small Cap Fund, payable to Keeley Asset Management, is equal to
an annual rate of 1.00% of the first $2 million in net assets it manages,
decreasing to 0.85% on the next $8 million in net assets, and further
decreasing to 0.70% of net assets in excess of $10 million. The
subadvisory fee for the Clearwater Tax-Exempt Bond Fund, payable to Sit
Fixed Income Advisers II, LLC, is equal to an annual rate of 0.40% on the
first $20 million in net assets and then decreasing in reduced percentages
to 0.20% of net assets in excess of $75 million.
(Continued)
9
CLEARWATER INVESTMENT TRUST
Notes to Financial Statements
December 31, 2007
(7) Financial Highlights
Per share data (rounded to the nearest cent) for a share of capital stock
outstanding throughout the years and selected information for each year is
as follows:
Year ended December 31
-----------------------------------------------------
Growth Fund 2007 2006 2005 2004 2003
- ---------------------------------- --------- -------- -------- -------- --------
Net asset value, beginning of year $ 29.47 26.03 24.93 22.66 17.70
Income from investment operations:
Net investment income 0.48 0.40 0.37 0.38 0.27
Net realized and unrealized
gain (loss) 1.10 3.44 1.10 2.24 4.95
--------- -------- -------- -------- --------
Total from investment
operations 1.58 3.84 1.47 2.62 5.22
--------- -------- -------- -------- --------
Less distributions:
Dividends from net investment
income (0.48) (0.40) (0.37) (0.35) (0.26)
Distributions from net realized
gains -- -- -- -- --
--------- -------- -------- -------- --------
Total distributions (0.48) (0.40) (0.37) (0.35) (0.26)
--------- -------- -------- -------- --------
Net asset value, end of year $ 30.57 29.47 26.03 24.93 22.66
========= ======== ======== ======== ========
Total return (a) 5.4% 14.8% 5.9% 11.5% 29.5%
Net assets, end of year
(000s omitted) $ 330,991 291,513 229,371 202,580 150,460
Ratio of expenses to average
net assets (b) 0.28% 0.31% 0.36% 0.37% 0.39%
Ratio of net investment income
to average net assets (b) 1.61% 1.56% 1.52% 1.62% 1.40%
Portfolio turnover rate (excluding
short-term securities) 17.99% 5.24% 5.80% 1.52% 13.64%
(a) 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.
(b) Total fund expenses are contractually limited to 0.45% of average daily
net assets. However, during the years ended December 31, 2007, 2006, 2005,
2004, and 2003, the investment advisor voluntarily reduced management fees
otherwise payable by the Funds. Had the Funds incurred these expenses, the
ratio of expenses to average daily net assets would have been 0.45%,
0.45%, 0.45%, 0.45%, and 0.45%, for the years ended December 31, 2007,
2006, 2005, 2004, and 2003, respectively, and the ratio of net investment
income to average daily net assets would have been 1.44%, 1.42%, 1.43%,
1.54%, and 1.34%, respectively.
(Continued)
10
CLEARWATER INVESTMENT TRUST
Notes to Financial Statements
December 31, 2007
Year ended December 31
-----------------------------------------------------
Small Cap Fund 2007 2006 2005 2004 2003
- ---------------------------------- --------- -------- -------- -------- --------
Net asset value, beginning of year $ 18.71 18.09 19.14 18.35 13.11
Income from investment operations:
Net investment income (loss) -- (0.04) (0.04) (0.09) (0.02)
Net realized and unrealized
gains (losses) 0.58 3.13 1.81 3.92 7.71
--------- -------- -------- -------- --------
Total from investment
operations 0.58 3.09 1.77 3.83 7.69
--------- -------- -------- -------- --------
Less distributions:
Distributions from net
investment income -- -- -- -- --
Distributions from net
realized gains (2.61) (2.47) (2.82) (3.04) (2.45)
--------- -------- -------- -------- --------
Total distributions (2.61) (2.47) (2.82) (3.04) (2.45)
--------- -------- -------- -------- --------
Net asset value, end of year $ 16.68 18.71 18.09 19.14 18.35
========= ======== ======== ======== ========
Total return (a) 3.1% 17.1% 9.2% 20.9% 58.7%
Net assets, end of year
(000s omitted) $ 246,987 253,846 203,351 213,273 138,089
Ratio of expenses to average
net assets (b) (c) 0.98% 1.03% 1.14% 1.24% 1.33%
Ratio of net investment income
(loss) to average net assets (b) --% (0.23)% (0.19)% (0.45)% (0.12)%
Portfolio turnover rate (excluding
short-term securities) 115.19% 69.57% 73.65% 83.25% 100.82%
(a) 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.
(b) Total fund expenses are contractually limited to 1.35% of average daily
net assets. However, during the years ended December 31, 2007, 2006, 2005,
2004, and 2003, the investment advisor voluntarily reduced management fees
otherwise payable by the Funds. Had the Funds incurred these expenses, the
ratio of expenses to average daily net assets would have been 1.35%,
1.35%, 1.35%, 1.35%, and 1.35%, for the years ended December 31, 2007,
2006, 2005, 2004, and 2003, respectively, and the ratio of net investment
income (loss) to average daily net assets would have been (0.37)%,
(0.55)%, (0.40)%, (0.56)%, and (0.14)%, respectively.
(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 the acquired
funds in which it invests. Such indirect expenses are not included in the
above reported expense ratios.
(Continued)
11
CLEARWATER INVESTMENT TRUST
Notes to Financial Statements
December 31, 2007
Year ended December 31
Tax-Exempt -----------------------------------------------------
Bond Fund 2007 2006 2005 2004 2003
- ------------------------------------ --------- -------- -------- -------- --------
Net asset value, beginning of year $ 10.06 10.00 10.03 10.12 10.24
Income from investment operations:
Net investment income 0.46 0.43 0.48 0.50 0.53
Net realized and unrealized gains (0.42) 0.06 (0.03) (0.10) (0.12)
--------- -------- -------- -------- --------
Total from investment
operations 0.04 0.49 0.45 0.40 0.41
--------- -------- -------- -------- --------
Less distributions:
Distributions from net
investment income (0.46) (0.43) (0.48) (0.49) (0.53)
Distributions from net
realized gains -- -- -- -- --
--------- -------- -------- -------- --------
Total distributions (0.46) (0.43) (0.48) (0.49) (0.53)
--------- -------- -------- -------- --------
Net asset value, end of year $ 9.64 10.06 10.00 10.03 10.12
========= ======== ======== ======== ========
Total return (a) 0.60% 5.3% 4.6% 4.1% 4.1%
Net assets, end of year
(000s omitted) $ 337,395 283,745 225,476 188,677 134,481
Ratio of expenses to average
net assets (b) (c) 0.38% 0.42% 0.48% 0.51% 0.56%
Ratio of net investment income
to average net assets (b) 4.75% 4.66% 4.77% 4.84% 5.24%
Portfolio turnover rate (excluding
short-term securities) 27.58% 40.20% 41.39% 35.25% 39.84%
(a) 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.
(b) Total fund expenses are contractually limited to 0.60% of average daily
net assets. However, during the years ended December 31, 2007, 2006, 2005,
2004, and 2003, the investment advisor voluntarily reduced management fees
otherwise payable by the Funds. Had the Funds incurred these expenses, the
ratio of expenses to average daily net assets would have been 0.60%,
0.60%, 0.60%, 0.60%, and 0.60%, for the years ended December 31, 2007,
2006, 2005, 2004, and 2003, respectively, and the ratio of net investment
income to average daily net assets would have been 4.53%, 4.48%, 4.65%,
4.75%, and 5.20%, respectively.
(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 the acquired
funds in which it invests. Such indirect expenses are not included in the
above reported expense ratios.
12
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2007
Percent of
Shares Security Cost Fair value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
Common stocks:
Consumer discretionary:
2,300 ABERCROMBIE + FITCH CO $ 50,218 183,931
1,809 ACCO BRANDS CORP (b) 16,591 29,016
2,900 ADVANCE AUTO PARTS 103,545 110,171
6,950 AMAZON COM INC (b) 247,060 643,848
10,950 AMERICAN EAGLE OUTFITTERS INC 106,990 227,432
900 AMERICAN GREETINGS CORP 13,869 18,270
1,700 AUTOLIV 69,331 89,607
1,600 AUTONATION INC DEL (b) 28,776 25,056
2,000 AUTOZONE INC (b) 183,474 239,820
1,800 BARE ESCENTUALS INC (b) 44,649 43,650
5,475 BED BATH + BEYOND INC (b) 181,359 160,910
1,250 BELO CORP 18,688 21,800
7,650 BEST BUY CO INC 210,571 402,773
1,400 BIG LOTS INC (b) 15,477 22,386
1,300 BLACK + DECKER CORPORATION 44,208 90,545
3,800 BORG WARNER INC 107,106 183,958
1,950 BRINKER INTL INC 41,847 38,142
8,300 BROCADE COMMUNICATIONS SYS INC (b) 52,215 60,922
2,025 CABLEVISION SYS CORP (b) 0 49,613
5,468 CARMAX INC (b) 78,791 107,993
7,200 CARNIVAL CORP 351,235 320,328
330 CAVCO INDS INC DEL (b) 815 11,167
18,889 CBS CORP CLASS B 518,637 514,725
6,600 CENTEX CORP 66,427 166,716
3,000 CHICOS FAS INC (b) 28,000 27,090
9,100 CIRCUIT CITY STORES INC 60,470 38,220
13,075 CLEAR CHANNEL COMMUNICATIONS 471,611 451,349
3,100 CLEAR CHANNEL OUTDOOR HLDGS IN (b) 84,181 85,746
9,200 COACH INC (b) 107,172 281,336
56,967 COMCAST CORP NEW (b) 1,015,030 1,040,217
1,300 COPART INC (b) 32,032 55,315
8,500 COSTCO WHSL CORP NEW 284,869 592,960
1,300 CROCS INC (b) 53,255 47,853
7,800 D R HORTON INC 104,715 102,726
2,800 DARDEN RESTAURANTS INC 65,099 77,588
17,423 DIRECTV GROUP INC (b) 258,330 402,820
37,160 DISNEY WALT CO 792,034 1,199,525
4,800 DOLBY LABORATORIES INC (b) 104,393 238,656
1,600 DOLLAR TREE STORES INC (b) 39,797 41,472
5,600 EASTMAN KODAK CO 132,955 122,472
5,700 ECHOSTAR COMMUNICATIONS CORP N (b) 211,833 215,004
6,220 EXPEDIA INC DEL (b) 124,528 196,676
3,000 FOOT LOCKER INC 40,394 40,980
26,963 FORD MTR CO DEL 209,912 181,461
7,700 FORTUNE BRANDS INC 266,191 557,172
3,800 GAMESTOP CORP NEW (b) 15,311 236,018
14,300 GAP INC 234,156 304,304
1,600 GARMIN LTD 164,024 155,200
8,700 GENERAL MTRS CORP 169,911 216,543
9,200 GENTEX CORP 131,306 163,484
2,100 GETTY IMAGES INC (b) 59,000 60,900
4,200 GOODYEAR TIRE AND RUBBER (b) 114,093 118,524
4,481 HANESBRANDS INC (b) 121,016 121,749
14,750 HARLEY DAVIDSON INC 86,417 688,973
1,950 HARMAN INTL INDS INC NEW 160,123 143,735
4,400 HARRAHS ENTMT INC 311,447 390,500
7,050 HEARST ARGYLE TELEVISION INC 169,510 155,876
42,525 HOME DEPOT INC 27,735 1,145,624
2,414 IDEARC INC 57,539 42,390
6,300 INTERNATIONAL GAME TECHNOLOGY 225,778 276,759
14,050 JOHNSON CTLS INC 283,752 506,362
1,200 KB HOME 31,938 25,920
11,550 KOHLS CORP (b) 92,211 528,990
900 LAMAR ADVERTISING CO 36,655 43,263
100 LAS VEGAS SANDS CORP (b) 11,817 10,305
See accompanying notes to financial statements. (Continued)
13
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2007
Percent of
Shares Security Cost Fair value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
1,300 LEAR CORP 21,307 35,958
7,100 LEGGETT + PLATT INC 140,202 123,824
21,637 LIBERTY MEDIA CORP NEW (b) 390,862 412,834
2,631 LIBERTY MEDIA CORP NEW (b) 156,652 306,485
10,290 LIMITED BRANDS INC 118,493 194,790
150 LIZ CLAIBORNE INC 3,221 3,053
31,800 LOWES COS INC 627,729 719,316
9,064 MACYS INC 242,987 234,486
21,400 MARRIOTT INTL INC NEW 88,308 731,452
8,700 MATTEL INC 164,712 165,648
24,300 MCDONALDS CORP 589,537 1,431,513
7,490 MCGRAW HILL COS INC 289,865 328,137
1,300 MGM MIRAGEINC (b) 117,140 109,226
2,900 MOHAWK INDS INC (b) 216,361 215,760
4,200 NEWELL RUBBERMAID INC 97,738 108,696
51,975 NEWS CORP 855,107 1,064,968
7,000 NIKE INC 251,483 449,680
5,500 NORDSTROM INC 70,744 202,015
4,500 OFFICE DEPOT INC (b) 65,209 62,595
5,400 OMNICOM GROUP 188,492 256,662
2,500 PENN NATL GAMING INC (b) 97,645 148,875
5,500 PENNEY J C INC 221,851 241,945
1,300 PETSMART INC 33,146 30,589
1,500 POLO RALPH LAUREN CORP 31,320 92,685
7,500 PULTE HOMES INC 77,063 79,050
3,000 REGAL ENTMT GROUP 55,920 54,210
2,300 ROSS STORES INC 36,395 58,811
2,600 RYLAND GROUP INC 71,175 71,630
3,100 SAKS INC (b) 64,527 64,356
1,000 SCHOLASTIC CORP (b) 28,560 34,890
2,300 SCRIPPS E W CO OH 98,829 103,523
1,379 SEARS HLDGS CORP (b) 97,638 140,727
1,300 SHERWIN WILLIAMS CO 62,645 75,452
37,100 SIRIUS SATELLITE RADIO INC (b) 126,697 112,413
1,400 SNAP ON INC 52,729 67,536
1,500 STANLEY WORKS 61,146 72,720
14,850 STAPLES INC 232,199 342,590
13,750 STARBUCKS CORP (b) 207,578 281,463
5,010 STARWOOD HOTELS + RESORTS INC 224,617 220,590
17,300 TARGET CORP 611,064 865,000
1,200 THOR INDS INC 45,726 45,612
3,000 TIFFANY + CO NEW 86,618 138,090
16,908 TIM HORTONS INC 362,401 624,412
90,800 TIME WARNER INC NEW (b) 1,270,055 1,499,108
9,100 TJX COS INC NEW 179,994 261,443
5,500 TOLL BROS INC (b) 124,557 110,330
800 TRW AUTOMOTIVE HLDGS CORP (b) 18,216 16,720
500 UNITED RENTALS INC (b) 8,963 9,180
3,227 URBAN OUTFITTERS INC (b) 61,562 87,968
2,300 V F CORP 135,032 157,918
14,712 VIACOM INC NEW (b) 604,599 646,151
3,400 VIRGIN MEDIA INC 60,178 58,276
1,166 WABCO HLDGS INC 40,995 58,405
49,296 WAL MART STORES INC 2,278,202 2,343,039
100 WASHINGTON POST CO 74,901 79,143
6,633 WENDYS INTL INC 164,257 171,397
3,600 WHIRLPOOL CORP 155,800 293,868
3,900 WILEY JOHN + SONS INC 153,413 167,076
900 WILLIAMS SONOMA INC 27,716 23,310
5,989 WYNDHAM WORLDWIDE CORP 97,386 141,101
7,200 XM SATELLITE RADIO HLDGS INC (b) 101,916 88,128
10,016 YUM BRANDS INC 105,346 383,312
2,400 ZALE CORP NEW (b) 39,515 38,544
------------- --------------
22,928,646 32,853,516 9.93%
Consumer staples:
48,300 ALTRIA GROUP INC 1,419,723 3,650,514
18,842 ANHEUSER BUSCH COS INC 884,023 986,190
15,100 ARCHER DANIELS MIDLAND CO 347,117 701,093
See accompanying notes to financial statements. (Continued)
14
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2007
Percent of
Shares Security Cost Fair value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
9,362 AVON PRODS INC 275,428 370,080
1,700 BROWN FORMAN CORP 63,044 125,987
2,200 BUNGE LIMITED 228,437 256,102
6,200 CAMPBELL SOUP CO 168,826 221,526
50,200 COCA COLA CO 1,856,203 3,080,774
5,700 COCA COLA ENTERPRISES INC 120,731 148,371
16,190 COLGATE PALMOLIVE CO 904,102 1,262,172
8,000 CONAGRA INC 182,521 190,320
5,200 CONSTELLATION BRANDS INC (b) 120,042 122,928
35,222 CVS CAREMARK CORP 672,197 1,400,075
4,600 DEAN FOODS CO NEW 124,691 118,956
5,773 DEL MONTE FOODS CO 57,723 54,613
7,200 GENERAL MLS INC 334,431 410,400
2,200 HANSEN NAT CORP (b) 97,471 97,438
8,075 HEINZ H J CO 303,404 376,941
2,600 HERSHEY CO / THE 122,014 102,440
4,900 HORMEL FOODS CORP 159,050 198,352
5,800 KELLOGG CO 268,705 304,094
7,250 KIMBERLY CLARK CORP 420,840 502,715
36,538 KRAFT FOODS INC 555,197 1,192,235
18,800 KROGER CO 367,066 502,148
1,867 LAUDER ESTEE COS INC 70,634 81,420
4,100 LOEWS CAROLINA GROUP 107,638 349,730
2,800 MCCORMICK + CO INC 97,399 106,148
2,400 MOLSON COORS BREWING CO 78,697 123,888
1,000 NBTY INC (b) 21,300 27,400
3,700 PEPSI BOTTLING GROUP INC 103,155 146,002
36,026 PEPSICO INC 1,534,320 2,734,373
71,739 PROCTER AND GAMBLE CO 1,814,002 5,267,077
15,400 RITE AID CORP (b) 56,560 42,966
8,419 SAFEWAY INC 166,288 288,014
12,350 SARA LEE CORP 200,173 198,341
1,000 SMITHFIELD FOODS INC (b) 26,940 28,920
800 SMUCKER J M CO 32,850 41,152
7,755 SUPERVALU INC 210,660 290,968
12,700 SYSCO CORP 281,430 396,367
9,527 TYSON FOODS INC (DEL) 111,286 146,049
2,900 UST INC 80,807 158,920
27,350 WALGREEN CO 324,378 1,041,488
2,800 WHOLE FOODS MKT INC 82,975 114,240
6,213 WRIGLEY WM JR CO 215,561 363,771
------------------------------
15,670,036 28,323,698 8.56%
Energy:
8,946 ANADARKO PETE CORP 333,946 587,663
9,134 APACHE CORP 389,377 982,270
6,900 BAKER HUGHES INC 421,475 559,590
4,000 BJ SVCS CO 105,712 97,040
8,488 BP PLC (d) 208,608 621,067
1,200 CHENIERE ENERGY INC (b) 35,104 39,168
16,686 CHESAPEAKE ENERGY CORP 404,571 654,091
45,595 CHEVRON CORP 2,179,507 4,255,381
34,643 CONOCOPHILLIPS 1,152,050 3,058,977
9,123 DEVON ENERGY CORPORATION NEW 413,163 811,126
4,100 DRESSER RAND GROUP INC (b) 134,747 160,105
13,900 EL PASO CORP 103,337 239,636
4,554 ENSCO INTL INC 193,114 271,509
8,500 EOG RESOURCES INC 80,824 758,625
124,333 EXXON MOBIL CORP 5,554,678 11,648,759
2,000 FMC TECHNOLOGIES INC (b) 109,510 113,400
2,421 GRANT PRIDECO INC (b) 103,909 134,390
20,158 HALLIBURTON CO 464,616 764,190
5,800 HELIX ENERGY SOLUTIONS GROUP (b) 237,945 240,700
6,200 HELMERICH AND PAYNE INC 82,265 248,434
4,600 HESS CORP 309,858 463,956
15,286 MARATHON OIL CORP 492,372 930,306
2,800 MURPHY OIL CORP 60,761 237,552
5,400 NABORS INDUSTRIES LTD (b) 164,133 147,906
10,734 NATIONAL OILWELL VARCO INC (b) 254,016 788,520
See accompanying notes to financial statements. (Continued)
15
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2007
Percent of
Shares Security Cost Fair value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
5,142 NEWFIELD EXPL CO (b) 222,527 270,983
6,000 NOBLE CORPORATION 295,985 339,060
5,800 NOBLE ENERGY INC 74,136 461,216
27,800 OCCIDENTAL PETE CORP 260,807 2,140,322
4,600 OCEANEERING INTL INC (b) 235,451 309,810
7,700 PATTERSON UTI ENERGY INC (b) 157,042 150,304
3,200 PIONEER NAT RES CO 48,507 156,288
5,600 PRIDE INTERNATIONAL INC (b) 188,739 189,840
2,905 QUICKSILVER RES INC (b) 119,305 173,109
26,700 SCHLUMBERGER LTD 1,597,871 2,626,479
2,200 SMITH INTL INC 38,951 162,470
9,500 SUNOCO INC 107,114 688,180
4,700 SUPERIOR ENERGY SVCS INC (b) 169,835 161,774
1,700 TESORO CORP 81,626 81,090
2,300 TIDEWATER INC 118,715 126,178
7,177 TRANSOCEAN INC NEW (b) 398,212 1,027,388
11,702 VALERO ENERGY CORP 282,104 819,491
3,800 WEATHERFORD INTERNATIONAL LTD (b) 253,690 260,680
10,660 WILLIAMS COS INC 156,697 381,415
8,448 XTO ENERGY INC 127,278 433,864
------------- --------------
18,924,186 39,774,301 12.02%
Financials:
8,600 ACE LTD 530,926 531,308
13,050 AFLAC INC 476,902 817,322
9,000 ALLIED CAP CORP NEW 196,349 193,500
9,700 ALLSTATE CORP 422,942 506,631
8,000 AMB PPTY CORP 259,171 460,480
2,800 AMBAC FINL GROUP INC 74,690 72,156
20,133 AMERICAN EXPRESS CO 769,846 1,047,319
51,885 AMERICAN INTL GROUP INC 1,348,261 3,024,896
2,700 AMERICREDIT CORP (b) 31,865 34,533
7,391 AMERIPRISE FINL INC 288,205 407,318
10,100 ANNALY CAPITAL MANAGEMENT INC 162,090 183,618
4,800 AON CORP 95,152 228,912
2,231 APARTMENT INVT + MGMT CO 75,602 77,483
4,100 ASSOCIATED BANC CORP 116,092 111,069
1,700 ASSURANT INC 112,991 113,730
9,900 ASTORIA FINL CORP 87,763 230,373
1,100 AVALONBAY CMNTYS INC 105,375 103,554
2,700 AXIS CAPITAL HOLDINGS LTD 105,908 105,219
103,583 BANK AMER CORP 3,585,442 4,273,835
25,701 BANK NEW YORK MELLON CORP 819,444 1,253,181
12,658 BB+T CORP 372,058 388,221
1,800 BEAR STEARNS COS INC 131,397 158,850
6,000 BERKLEY W R CORP 187,143 178,860
2,000 BLACKROCK INC 383,898 433,600
1,288 BOSTON PPTYS INC 128,662 118,251
3,080 BROADRIDGE FINL SOLUTIONS INC 52,817 69,084
5,747 CAPITAL ONE FINL CORP 227,455 271,603
3,700 CB RICHARD ELLIS GROUP INC (b) 84,241 79,735
10,500 CHUBB CORP 463,686 573,090
3,156 CINCINNATI FINL CORP 121,219 124,788
3,800 CIT GROUP INC NEW 96,584 91,314
107,959 CITIGROUP INC 2,620,358 3,178,313
1,000 CME GROUP INC 418,248 686,000
6,622 COLONIAL BANCGROUPINC 137,950 89,662
5,400 COMERICA INC 276,711 235,062
6,205 COMMERCE BANCORP INC N J 196,189 236,659
6,198 COUNTRYWIDE FINL CORP 40,468 55,410
8,787 DISCOVER FINL SVCS 133,525 132,508
2,500 DUKE RLTY CORP 66,038 65,200
15,500 E TRADE FINL CORP (b) 56,033 55,025
5,016 EQUITY RESIDENTIAL 159,472 182,934
6,000 ERIE INDTY CO 310,838 311,340
800 EVEREST REINSURANCE GROUP LTD 82,500 80,320
17,950 FEDERAL HOME LN MTG CORP 54,545 611,557
16,654 FEDERAL NATL MTG ASSN 883,033 665,827
4,281 FIDELITY NATL FINL INC 72,081 62,545
See accompanying notes to financial statements. (Continued)
16
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2007
Percent of
Shares Security Cost Fair value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
4,742 FIDELITY NATL INFORMATION SVC 173,614 197,220
7,800 FIFTH THIRD BANCORP 240,184 196,014
1,850 FIRST HORIZON NATL CORP 34,167 33,578
1,200 FOREST CITY ENTERPRISES INC 54,504 53,328
829 FORESTAR REAL ESTATE GROUP INC (b) 20,670 19,556
8,645 FRANKLIN RES INC 158,797 989,247
16,500 GENERAL GROWTH PPTYS INC 186,316 679,470
4,000 GENWORTH FINL INC 115,535 101,800
9,226 GOLDMAN SACHS GROUP INC 1,207,732 1,984,051
829 GUARANTY FINL GROUP INC (b) 13,264 13,264
6,700 HARTFORD FINANCIAL SVCS GRP 451,401 584,173
14,500 HCP INC 241,976 504,310
13,067 HOST HOTELS + RESORTS INC 238,041 222,662
6,400 HRPT PPTYS TR 57,603 49,472
10,500 HUDSON CITY BANCORP INC 166,268 157,710
4,382 HUNTINGTON BANCSHARES INC 68,686 64,678
1,900 INTERCONTINENTALEXCHANGE INC (b) 304,918 365,750
2,800 INVESCO LTD (b) 89,642 87,864
3,600 ISTAR FINL INC 63,519 93,780
4,400 JANUS CAP GROUP INC 64,273 144,540
73,540 JPMORGAN CHASE + CO 2,263,420 3,210,021
16,200 KEYCORP NEW 328,055 379,890
3,301 KIMCO RLTY CORP 100,995 120,156
852 LEGG MASON INC 77,086 62,324
11,294 LEHMAN BROTHERS HLDGS INC 459,961 739,079
1,600 LEUCADIA NATL CORP 27,592 75,360
6,948 LINCOLN NATL CORP IN 251,421 404,513
8,000 LOEWS CORP 130,827 402,720
1,060 M + T BK CORP 90,056 86,464
5,400 MACK CA RLTY CORP 169,534 183,600
9,382 MANULIFE FINL CORP 133,604 382,317
11,478 MARSH + MCLENNAN COS INC 302,955 303,823
1,999 MARSHALL + ILSLEY CORP NEW 40,814 52,934
21,690 MERRILL LYNCH + CO INC 1,067,569 1,164,319
9,100 METLIFE INC 391,461 560,742
5,900 MGIC INVT CORP WIS 141,777 132,337
4,400 MOODYS CORP 173,138 157,080
21,860 MORGAN STANLEY 912,241 1,160,985
4,500 NASDAQ STK MKT INC (b) 139,568 222,705
16,290 NATIONAL CITY CORP 294,889 268,133
600 NATIONWIDE FINL SVCS INC 19,446 27,006
2,049 NEW YORK CMNTY BANCORP INC 36,877 36,021
3,902 NORTHERN TRUST CORP 192,646 298,815
1,900 NYMEX HLDGS INC 248,881 253,859
5,700 NYSE EURONEXT 430,399 500,289
11,825 OLD REP INTL CORP 232,156 182,223
4,100 ONEBEACON INSURANCE GROUP LTD 90,672 88,150
15,523 PEOPLES UTD FINL INC 218,427 276,309
255 PIPER JAFFRAY COS (b) 7,794 11,812
3,485 PLUM CREEK TIMBER CO INC 79,081 160,449
3,800 PMI GROUP INC 49,989 50,464
7,225 PNC FINL SVCS GROUP INC 415,080 474,321
20,300 POPULAR INC 201,478 215,180
16,700 PRICE T ROWE GROUP INC 110,516 1,016,696
4,150 PRINCIPAL FINANCIAL GROUP 174,550 285,686
18,348 PROGRESSIVE CORP OHIO (b) 320,780 351,548
5,472 PROLOGIS 247,765 346,815
9,400 PRUDENTIAL FINL INC 430,241 874,576
2,991 PUBLIC STORAGE 238,179 219,569
3,525 RAYMOND JAMES FINANCIAL INC 94,116 115,127
2,700 REALTY INCOME CORP 68,166 72,954
14,590 REGIONS FINL CORP NEW 392,701 345,054
2,000 SAFECO CORP 105,587 111,360
25,700 SCHWAB CHARLES CORP 229,436 656,635
5,126 SIMON PPTY GROUP INC NEW 352,978 445,244
4,800 SLM CORP 144,102 96,672
8,410 SOVEREIGN BANCORP INC 81,914 95,874
1,700 ST JOE CO 56,409 60,367
See accompanying notes to financial statements. (Continued)
17
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2007
Percent of
Shares Security Cost Fair value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
11,735 STATE STREET CORPORATION 588,179 952,882
4,534 SUNTRUST BKS INC 291,972 283,330
9,000 SYNOVUS FINL CORP 227,973 216,720
22,900 TCF FINANCIAL CORP 198,197 410,597
7,566 TD AMERITRADE HLDG CORP (b) 121,495 151,774
9,800 THORNBURG MTG INC 93,443 90,552
2,600 TORCHMARK INC 124,633 157,378
1,100 TRANSATLANTIC HLDGS INC 71,062 79,937
16,188 TRAVELERS COS INC 607,690 870,914
4,000 UNITRIN INC 101,606 191,960
8,900 UNUM GROUP 167,076 211,731
37,585 US BANCORP DEL 920,971 1,192,948
5,092 VALLEY NATL BANCORP 95,576 97,054
2,900 VENTAS INC 129,094 131,225
2,645 VORNADO RLTY TR 218,703 232,628
43,860 WACHOVIA CORP 2ND NEW 1,774,777 1,667,996
3,200 WALTER INDS INC 86,512 114,976
18,088 WASHINGTON MUT INC 288,437 246,178
65,753 WELLS FARGO + CO NEW 739,391 1,985,083
26,044 WESTERN UN CO 79,377 632,348
7,225 XL CAPITAL LTD 92,119 363,490
3,800 ZIONS BANCORP 189,075 177,422
------------- --------------
41,347,948 57,652,359 17.42%
Healthcare:
33,268 ABBOTT LABS 1,274,159 1,867,998
18,700 AETNA INC 150,797 1,079,551
7,286 ALLERGAN INC 331,496 468,053
4,000 AMERISOURCEBERGEN CORP 121,747 179,480
25,150 AMGEN INC (b) 102,792 1,167,966
2,000 AMYLIN PHARMACEUTICALS INC (b) 64,093 74,000
1,700 APPLERA CORP APPLIED BIOSYS 35,346 57,664
1,300 BARD C R INC 78,455 123,240
4,800 BARR PHARMACEUTICALS INC (b) 241,320 254,880
13,100 BAXTER INTL INC 340,800 760,455
6,500 BECTON DICKINSON + CO 417,630 543,270
10,950 BIOGEN IDEC INC (b) 149,970 623,274
10,650 BOSTON SCIENTIFIC CORP (b) 148,408 123,860
41,800 BRISTOL MYERS SQUIBB CO 1,052,153 1,108,536
7,335 CARDINAL HEALTH INC 403,937 423,596
9,336 CELGENE CORP (b) 254,961 431,417
1,200 CEPHALON INC (b) 78,269 86,112
6,600 CIGNA CORP 107,215 354,618
1,400 COVANCE INC (b) 82,457 121,268
2,546 COVENTRY HEALTH CARE INC (b) 100,005 150,851
7,325 COVIDIEN LTD 212,213 324,424
3,225 DAVITA INC (b) 123,269 181,729
5,400 EXPRESS SCRIPTS INC (b) 130,689 394,200
7,650 FOREST LABS INC (b) 294,683 278,843
9,400 GENENTECH INC (b) 505,049 630,458
5,200 GENZYME CORP (b) 283,372 387,088
19,060 GILEAD SCIENCES INC (b) 384,552 876,951
3,152 GLAXOSMITHKLINE PLC (d) 76,079 158,829
10,600 HEALTH MGMT ASSOC 68,741 63,388
2,450 HEALTH NET INC (b) 64,669 118,335
1,300 HILLENBRAND INDS INC 71,162 72,449
6,000 HLTH CORP (b) 58,236 80,400
6,817 HOLOGIC INC (b) 325,224 467,919
2,005 HOSPIRA INC (b) 50,661 85,493
3,900 HUMANA INC (b) 39,107 293,709
1,300 IMCLONE SYS INC (b) 38,989 55,900
4,400 IMS HEALTH INC 108,416 101,376
700 INTUITIVE SURGICAL INC (b) 171,284 227,150
2,500 INVITROGEN CORP (b) 164,832 233,525
61,779 JOHNSON + JOHNSON 2,095,755 4,120,659
1,931 KINETIC CONCEPTS INC (b) 71,019 103,424
9,700 KING PHARMACEUTICALS INC (b) 103,405 99,328
3,400 LABORATORY CORP AMER HLDGS (b) 99,252 256,802
See accompanying notes to financial statements. (Continued)
18
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2007
Percent of
Shares Security Cost Fair value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
21,794 LILLY ELI + CO 954,591 1,163,582
1,950 LINCARE HLDGS INC (b) 58,492 68,562
6,300 MCKESSON CORP 258,943 412,713
5,378 MEDCO HEALTH SOLUTIONS INC (b) 182,933 545,329
27,050 MEDTRONIC INC 100,935 1,359,804
48,986 MERCK + CO INC 1,785,846 2,846,576
8,400 MILLENNIUM PHARMACEUTICALS (b) 115,374 125,832
953 MILLIPORE CORP (b) 60,735 69,741
6,800 MYLAN INC 81,695 95,608
1,900 OMNICARE INC 55,719 43,339
2,600 PATTERSON COS INC 87,927 88,270
1,900 PDL BIOPHARMA INC (b) 30,868 33,288
150,175 PFIZER INC 1,201,569 3,413,478
1,400 PHARMACEUTICAL PROD DEV INC 32,993 56,518
3,950 QUEST DIAGNOSTICS INC 166,762 208,955
31,203 SCHERING PLOUGH CORP 589,552 831,248
3,074 SEPRACOR INC (b) 81,275 80,693
12,600 SERVICE CORP INTL 90,438 177,030
7,039 ST JUDE MED INC (b) 200,879 286,065
15,450 STRYKER CORP 59,627 1,154,424
12,900 TENET HEALTHCARE CORP (b) 56,567 65,532
2,157 TEVA PHARMACEUTICAL INDS LTD (d) 40,824 100,257
28,670 UNITEDHEALTH GROUP INC 757,185 1,668,594
600 UNIVERSAL HEALTH SVCS INC 27,330 30,720
5,800 VARIAN MED SYS INC (b) 213,788 302,528
5,200 VCA ANTECH INC (b) 170,352 229,996
3,000 VERTEX PHARMACEUTICALS INC (b) 74,805 69,690
2,175 WATSON PHARMACEUTICALS INC (b) 50,706 59,030
1,400 WELLCARE HEALTH PLANS INC (b) 49,539 59,374
12,749 WELLPOINT INC (b) 580,688 1,118,470
29,967 WYETH 1,252,227 1,324,242
4,674 ZIMMER HOLDINGS INC (b) 292,291 309,185
------------- --------------
20,840,118 38,011,138 11.48%
Industrials:
14,250 3M CO 1,021,177 1,201,560
4,210 AGCO CORP (b) 174,615 286,196
1,950 ALLIED WASTE INDUSTRIES INC (b) 11,573 21,489
3,832 AMR CORP DEL (b) 45,269 53,763
2,400 APOLLO GROUP INC (b) 149,220 168,360
1,700 AVERY DENNISON CORP 90,518 90,338
900 BE AEROSPACE INC (b) 47,822 47,610
6,200 BLOCK H + R INC 58,017 115,134
18,700 BOEING CO 442,349 1,635,502
7,947 BURLINGTON NORTHN SANTA FE 362,943 661,429
1,400 CARLISLE COS INC 47,448 51,842
13,904 CATERPILLAR INC 528,647 1,008,874
3,700 CINTAS CORP 122,389 124,394
2,300 CON WAY INC 29,002 95,542
4,300 CONTINENTAL AIRLS INC (b) 102,190 95,675
3,900 CONVERGYS CORP (b) 69,089 64,194
2,900 COOPER INDUSTRIES LTD 158,649 153,352
1,200 COPA HOLDINGS S A 46,086 45,084
12,575 CRANE CO 212,043 539,468
10,200 CSX CORP 107,400 448,596
3,000 CUMMINS INC 184,025 382,110
5,000 DANAHER CORP 273,950 438,700
9,300 DEERE + CO 330,625 866,016
1,000 DEVRY INC DEL 19,142 51,960
3,893 DISCOVERY HLDG CO (b) 45,381 97,870
15,100 DOMTAR CORP (b) 120,272 116,119
1,600 DONALDSON CO INC 63,715 74,208
4,600 DONNELLEY R R + SONS CO 143,396 173,604
5,925 DOVER CORP 251,755 273,083
7,900 DUN + BRADSTREET CORP DEL NEW 196,340 700,177
3,100 EATON CORP 112,467 300,545
19,700 EMERSON ELEC CO 559,227 1,116,202
1,397 ENERGIZER HLDGS INC (b) 87,823 156,646
3,600 EXPEDITORS INTL WA INC 151,918 160,848
See accompanying notes to financial statements. (Continued)
19
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2007
Percent of
Shares Security Cost Fair value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
1,700 FASTENAL CO 55,759 68,714
10,450 FISERV INC (b) 94,244 579,871
1,300 FLOWSERVE CORP 119,620 125,060
3,675 FLUOR CORP NEW 96,907 535,521
1,400 FOSTER WHEELER LTD (b) 172,525 217,028
1,400 GATX CORPORATION 24,276 51,352
7,700 GENERAL DYNAMICS CORP 392,062 685,223
232,200 GENERAL ELEC CO 5,624,827 8,607,654
1,000 GENERALE CABLE CORP (b) 71,390 73,280
5,050 GENUINE PARTS CO 153,969 233,815
3,700 GOODRICH CORP 111,298 261,257
4,100 GRACO INC 162,258 152,766
1,700 GRAINGER W W INC 74,317 148,784
2,200 HARSCO CORP 59,517 140,954
15,000 HONEYWELL INTL INC 401,329 923,550
1,400 HUBBELL INC 56,152 72,240
2,100 HUNT J B TRANS SVCS INC 40,530 57,855
11,924 ILLINOIS TOOL WKS INC 497,186 638,411
1,400 INGERSOLL RAND COMPANY LIMITED 69,461 65,058
3,600 ITT CORP NEW 168,296 237,744
1,300 ITT EDL SVCS INC (b) 52,038 110,851
5,468 JACOBS ENGR GROUP INC (b) 167,658 522,795
2,238 JOY GLOBAL INC 102,549 147,305
2,400 KBR INC (b) 95,604 93,120
2,700 L 3 COMMUNICATIONS HLDG CORP 176,123 286,038
1,200 LANDSTAR SYS INC 38,351 50,580
9,100 LOCKHEED MARTIN CORP 510,446 957,866
2,600 MANITOWOC INC 107,595 126,958
1,475 MANPOWER INC WIS 66,373 83,928
9,300 MASCO CORP 186,431 200,973
1,800 MASTERCARD INC 193,005 387,360
4,400 MCDERMOTT INTL INC (b) 194,146 259,732
3,500 MONEYGRAM INTL INC 56,613 53,795
3,000 MONSTER WORLDWIDE INC (b) 89,215 97,200
11,060 NORFOLK SOUTHN CORP 379,107 557,866
7,692 NORTHROP GRUMMAN CORP 459,008 604,899
1,400 OSHKOSH TRUCK CORP 55,203 66,164
1,700 OVERSEAS SHIPHOLDING GROUP INC 109,761 126,531
2,500 OWENS CORNING NEW (b) 51,313 50,550
10,489 PACCAR INC 186,765 571,441
2,200 PALL CORP 55,214 88,704
3,950 PARKER HANNIFIN CORP 212,565 297,475
2,200 PENTAIR INC 72,761 76,582
1,497 PHH CORP (b) 10,184 26,407
10,200 PITNEY BOWES INC 328,150 388,008
4,000 PRECISION CASTPARTS CORP 45,286 554,800
8,800 RAYTHEON CO 335,791 534,160
6,975 REPUBLIC SVCS INC 125,531 218,666
4,400 REYNOLDS AMERN INC 123,818 290,224
3,300 ROBERT HALF INTL INC 85,171 89,232
7,250 ROCKWELL AUTOMATION INC 102,173 499,960
2,714 ROCKWELL COLLINS INC 75,092 195,327
1,000 SHAW GROUP INC (b) 44,695 60,440
2,400 SKYWEST INC 26,040 64,440
1,400 SPX CORP 92,591 143,990
600 STERICYCLE INC (b) 20,003 35,640
2,500 SUNPOWER CORP (b) 145,963 325,975
900 TELEFLEX INC 48,465 56,709
2,100 TEREX CORP NEW (b) 114,143 137,697
4,350 TEXTRON INC 118,864 310,155
1,500 TRINITY INDS INC 41,498 41,640
5,325 TYCO ELECTRONICS LTD 109,028 197,717
8,125 TYCO INTERNATIONAL LTD BERMUDA 242,956 322,156
5,700 UNION PAC CORP 436,933 716,034
23,250 UNITED TECHNOLOGIES CORP 1,021,959 1,779,555
1,400 USG CORP (b) 53,207 50,106
10,950 WASTE MGMT INC DEL 214,223 357,737
600 WEIGHT WATCHERS INTL INC NEW 23,424 27,108
See accompanying notes to financial statements. (Continued)
20
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2007
Percent of
Shares Security Cost Fair value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
3,000 YRC WORLDWIDE INC (b) 51,195 51,270
------------- --------------
22,466,621 38,986,491 11.78%
Information technology:
7,800 ACCENTURE LTD BERMUDA 307,717 281,034
4,000 ACTIVISION INC NEW (b) 33,204 118,800
15,624 ADOBE SYS INC (b) 374,459 667,614
1,500 AFFILIATED COMPUTER SVCS INC (b) 70,406 67,650
10,400 AGILENT TECHNOLOGIES INC (b) 250,955 382,096
4,242 AKAMAI TECHNOLOGIES INC (b) 133,995 146,773
6,400 ALTERA CORP 120,963 123,648
3,100 AMDOCS LTD (b) 101,572 106,857
4,000 AMPHENOL CORP NEW 168,180 185,480
11,100 ANALOG DEVICES INC 99,557 351,870
18,600 APPLE INC (b) 638,581 3,684,288
27,800 APPLIED MATERIALS INC 391,284 493,728
2,200 ARROW ELECTRS INC (b) 73,136 86,416
6,666 ASML HOLDING N V (b) 45,620 208,579
7,986 AUTODESK INCORPORATED 285,037 397,383
8,722 AUTOMATIC DATA PROCESSING INC 294,057 388,391
2,800 AVNET INC (b) 100,394 97,916
8,700 BEA SYS INC (b) 91,181 137,286
3,350 BMC SOFTWARE INC (b) 58,044 119,394
9,962 BROADCOM CORP (b) 220,634 260,407
10,925 CA INC 208,510 272,579
11,200 CADENCE DESIGN SYS INC (b) 184,491 190,512
1,400 CIENA CORP (b) 47,635 47,754
136,850 CISCO SYS INC (b) 774,343 3,704,530
3,234 CITRIX SYS INC (b) 25,998 122,924
5,100 COGNIZANT TECHNOLOGY SOLUTIONS (b) 77,624 173,094
2,074 COMMSCOPE INC (b) 90,440 102,062
6,922 COMPUTER SCIENCES CORP (b) 331,088 342,431
8,000 COMPUWARE CORP (b) 54,024 71,040
39,200 CORNING INC 490,464 940,408
2,700 CYPRESS SEMICONDUCTOR CORP (b) 39,334 97,281
46,150 DELL INC (b) 1,154,680 1,131,137
24,400 EBAY INC (b) 356,540 809,836
5,400 ELECTRONIC ARTS INC (b) 275,076 315,414
8,000 ELECTRONIC DATA SYS CORP NEW 176,587 165,840
45,910 EMC CORP (b) 396,942 850,712
3,700 EMULEX CORP (b) 49,943 60,384
1,400 F5 NETWORKS INC (b) 32,375 39,928
700 FAIR ISAAC CORPORATION 23,898 22,505
1,600 FAIRCHILD SEMICONDUCTOR INTL (b) 21,840 23,088
600 FIRST SOLAR INC (b) 57,681 160,284
7,983 FLEXTRONICS INTERNATIONAL LTD (b) 89,720 96,275
4,967 GOOGLE INC (b) 1,806,992 3,434,581
2,800 HARRIS CORP DEL 37,337 175,504
58,327 HEWLETT PACKARD CO 1,151,449 2,944,347
5,420 IAC INTERACTIVECORP (b) 144,989 145,906
6,110 INTEGRATED DEVICE TECHNOLOGY (b) 79,318 69,104
131,000 INTEL CORP 777,868 3,492,460
32,600 INTERNATIONAL BUSINESS MACHS 2,820,072 3,524,060
7,800 INTERSIL CORP 123,552 190,944
6,800 INTUIT (b) 158,628 214,948
8,200 JABIL CIRCUIT INC 144,077 125,214
14,267 JUNIPER NETWORKS INC (b) 289,096 473,664
3,000 KLA TENCOR CORP 101,654 144,480
3,000 LAM RESH CORP (b) 83,706 129,690
1,800 LEXMARK INTL INC (b) 75,928 62,748
4,600 LINEAR TECHNOLOGY CORP 143,858 146,418
18,620 LSI CORP (b) 115,339 98,872
2,900 MCAFEE INC (b) 65,012 108,750
8,314 MEMC ELECTR MATLS INC (b) 262,498 735,706
14,567 METAVANTE TECHNOLOGIES INC (b) 329,584 339,702
5,400 MICROCHIP TECHNOLOGY INC 101,340 169,668
8,800 MICRON TECHNOLOGY INC (b) 68,191 63,800
174,750 MICROSOFT CORP 2,000,081 6,221,100
2,100 MOLEX INC 57,992 57,330
See accompanying notes to financial statements. (Continued)
21
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2007
Percent of
Shares Security Cost Fair value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
47,113 MOTOROLA INC 529,353 755,693
5,600 NATIONAL SEMICONDUCTOR CORP 101,536 126,784
2,875 NAVTEQ CORP (b) 91,103 217,350
4,000 NCR CORP NEW (b) 85,604 100,400
8,800 NETWORK APPLIANCE INC (b) 216,784 219,648
5,200 NOVELL INC (b) 31,071 35,724
2,800 NOVELLUS SYS INC (b) 70,810 77,196
17,750 NVIDIA CORP (b) 191,401 603,855
93,762 ORACLE CORP (b) 256,960 2,117,146
19,197 PAYCHEX INC 54,016 695,315
1,400 PERKINELMER INC 25,256 36,428
2,600 POLYCOM INC (b) 26,520 72,228
5,700 QLOGIC CORP (b) 82,128 80,940
29,150 QUALCOMM INC 632,485 1,147,053
4,500 RAMBUS INC DEL (b) 79,087 94,230
4,200 RED HAT INC (b) 61,669 87,528
1,600 ROPER INDS 104,136 100,064
2,000 SALESFORCE COM INC (b) 95,186 125,380
2,500 SANDISK CORP (b) 61,884 82,925
12,700 SEAGATE TECHNOLOGY 326,124 323,850
12,956 SUN MICROSYSTEMS INC (b) 214,445 234,892
21,819 SYMANTEC CORP (b) 187,612 352,159
1,500 SYNOPSYS INC (b) 24,907 38,895
6,450 TELLABS INC (b) 37,637 42,183
2,000 TERADATA CORP (b) 38,279 54,820
30,200 TEXAS INSTRS INC 640,718 1,008,680
9,400 THERMO FISHER SCIENTIFIC INC (b) 250,057 542,192
6,600 UNISYS CORP (b) 38,907 31,218
10,900 VERISIGN INC (b) 60,947 409,949
600 VMWARE INC (b) 53,793 50,994
2,600 WATERS CORP (b) 60,997 205,582
5,900 WESTERN DIGITAL CORP (b) 91,433 178,239
30,850 XEROX CORP 412,830 499,462
13,050 XILINX INC 92,297 285,404
23,940 YAHOO INC (b) 433,567 556,844
------------- --------------
25,518,302 52,705,873 15.91%
Materials:
3,450 AIR PRODS + CHEMS INC 178,299 340,274
4,316 AK STL HLDG CORP (b) 137,899 199,572
18,700 ALCOA INC 529,300 683,485
1,900 ALLEGHENY TECHNOLOGIES INC 144,994 164,160
6,200 ARCH COAL INC 55,785 278,566
3,032 BALL CORP 70,662 136,440
4,200 BEMIS CO INC 93,645 114,996
3,384 CONSOL ENERGY INC 101,377 242,024
4,300 CROWN HLDGS INC (b) 74,494 110,295
3,537 CYTEC INDS INC 195,563 217,808
19,750 DOW CHEM CO 699,969 778,545
19,125 DU PONT E I DE NEMOURS + CO 809,637 843,221
1,911 EAGLE MATLS INC 1,727 67,802
1,000 EASTMAN CHEM CO 32,854 61,090
3,671 ECOLAB INC 140,788 187,992
9,748 FREEPORT MCMORAN COPPER + GOLD 489,522 998,585
5,100 HUNTSMAN CORP 96,099 131,070
11,231 INTERNATIONAL PAPER CO 394,747 363,660
12,525 INTRNTNL FLAVRS + FRAGRNCS INC 269,444 602,828
500 LUBRIZOL CORP 18,193 27,080
700 MARTIN MARIETTA MATLS INC 27,965 92,820
4,175 MEADWESTVACO CORP 95,626 130,678
11,616 MONSANTO CO NEW 51,490 1,297,391
3,000 MOSAIC CO (b) 74,386 283,020
11,800 NEWMONT MNG CORP 298,257 576,194
8,800 NUCOR CORP 154,139 521,136
5,900 OM GROUP INC (b) 26,535 339,486
4,950 OWENS ILL INC (b) 91,031 245,025
2,000 PACKAGING CORP AMER 50,382 56,400
2,450 PACTIV CORP (b) 22,665 65,244
720 PATRIOT COAL CORPORATION (b) 14,204 30,053
See accompanying notes to financial statements. (Continued)
22
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2007
Percent of
Shares Security Cost Fair value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
7,200 PEABODY ENERGY CORP 208,428 443,808
3,086 PPG INDS INC 144,348 216,730
5,350 PRAXAIR INC 200,757 474,599
5,446 RAYONIER INC 117,391 257,269
3,000 ROHM + HAAS CO 117,514 159,210
11,000 RPM INTL INC 113,012 223,300
2,100 SEALED AIR CORP NEW 51,587 48,594
18,200 SMURFIT STONE CONTAINER CORP (b) 203,147 192,192
5,200 SONOCO PRODS CO 127,607 169,936
1,000 SOUTHERN COPPER CORP DEL 110,365 105,130
1,800 STEEL DYNAMICS INC 87,525 107,226
2,489 TEMPLE INLAND INC 48,350 51,896
4,049 TITANIUM METALS CORP 107,987 107,096
2,100 UNITED STS STL CORP NEW 133,602 253,911
2,157 VULCAN MATLS CO 120,030 170,606
------------- --------------
7,333,324 13,168,441 3.98%
Services:
11,175 FEDEX CORP 222,098 996,475
9,875 SOUTHWEST AIRLS CO 128,598 120,475
13,900 UNITED PARCEL SVC INC 996,596 983,008
5,200 US AWYS GROUP INC (b) 80,158 76,492
------------- --------------
1,427,449 2,176,450 0.66%
Telecommunication services:
7,450 AMERICAN TOWER CORP (b) 148,350 317,370
135,215 AT+T INC 3,483,568 5,619,535
7,450 CENTURYTEL INC 200,627 308,877
11,525 CITIZENS COMMUNICATIONS CO 88,166 146,713
2,800 CROWN CASTLE INTL CORP (b) 77,771 116,480
2,792 EMBARQ CORP 64,587 138,288
8,000 JDS UNIPHASE CORP (b) 111,480 106,400
700 LEAP WIRELESS INTL INC (b) 36,068 32,648
34,500 LEVEL 3 COMMUNICATIONS INC (b) 107,123 104,880
7,353 LIBERTY GLOBAL INC (b) 190,626 288,164
38,300 QWEST COMMUNICATIONS INTL INC 188,069 268,483
61,659 SPRINT NEXTEL CORP 717,313 809,583
1,300 TELEPHONE + DATA SYS INC 26,702 81,380
1,300 TELEPHONE + DATA SYS INC 26,702 74,880
6,200 TIME WARNER CABLE INC 158,565 171,120
3,980 UNITED STATES CELLULAR CORP (b) 166,990 334,718
62,187 VERIZON COMMUNICATIONS 2,198,880 2,716,950
12,762 VODAFONE GROUP PLC NEW (d) 147,191 476,278
11,424 WINDSTREAM CORP 138,133 148,740
------------- --------------
8,276,909 12,261,488 3.70%
Utilities:
19,186 AES CORP (b) 265,922 410,389
700 AGL RES INC 19,621 26,348
3,000 ALLEGHENY ENERGY INC 168,525 190,830
5,400 AMEREN CORP 209,724 292,734
4,800 AMERICAN ELEC PWR INC 189,240 223,488
2,488 AQUA AMER INC 53,260 52,746
5,800 CENTERPOINT ENERGY INC 66,308 99,354
16,100 CMS ENERGY CORP 228,933 279,818
1,600 CONSOLIDATED EDISON INC 70,512 78,160
3,115 CONSTELLATION ENERGY GROUP INC 183,052 319,381
10,962 DOMINION RES INC VA NEW 379,225 520,147
2,700 DTE ENERGY CO 103,060 118,692
25,913 DUKE ENERGY HLDG CORP 330,344 522,665
8,700 DYNEGY INC DEL (b) 61,901 62,118
9,425 EDISON INTL 108,441 503,012
9,400 ENTERGY CORP NEW 184,383 1,123,488
14,732 EXELON CORP 716,434 1,202,720
5,400 FIRSTENERGY CORP 267,757 390,636
11,372 FPL GROUP INC 545,463 770,794
5,500 INTEGRYS ENERGY GROUP INC 270,140 284,295
7,200 MIRANT CORP NEW (b) 263,250 280,656
2,900 NALCO HLDG CO 58,310 70,122
1,500 NATIONAL FUEL GAS CO N J 38,322 70,020
7,800 NISOURCE INC 128,106 147,342
See accompanying notes to financial statements. (Continued)
23
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2007
Percent of
Shares Security Cost Fair value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
2,200 NRG ENERGY INC (b) 94,875 95,348
2,400 OGE ENERGY CORP 43,344 87,096
2,128 PEPCO HLDGS INC 49,590 62,414
9,800 PG+E CORP 131,785 422,282
1,300 PIEDMONT NAT GAS INC 31,174 34,008
2,400 PINNACLE WEST CAP CORP 71,637 101,784
6,987 PPL CORP 232,359 363,953
2,150 PROGRESS ENERGY INC 65,685 104,125
6,300 PUBLIC SVC ENTERPRISE GROUP 430,137 618,912
7,350 PUGET ENERGY INC 149,926 201,611
5,800 QUESTAR CORP 66,188 313,780
12,600 RELIANT ENERGY INC (b) 161,722 330,624
5,200 SEMPRA ENERGY 286,272 321,776
12,600 SOUTHERN CO 320,630 488,250
3,600 SOUTHWESTERN ENERGY CO (b) 107,060 200,592
12,306 SPECTRA ENERGY CORP 218,732 317,741
7,600 TECO ENERGY INC 90,842 130,796
4,000 TRANE INC 116,253 186,840
3,000 UGI CORP NEW 48,600 81,750
15,775 WISCONSIN ENERGY CORP 304,172 768,400
12,125 XCEL ENERGY INC 108,918 273,661
------------- --------------
8,040,131 13,545,698 4.09%
Cash equivalents:
2,243,291 SSGA MONEY MARKET FUND, current rate 4.61% 2,243,291 2,243,291
------------- --------------
2,243,291 2,243,291 0.68%
------------- -------------- -------
Grand total (c) $ 195,016,962 331,702,743 100.21%
============= ============== =======
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) At December 31, 2007, the cost for Federal income tax purposes was
$195,224,747. The aggregate gross unrealized appreciation and
depreciation of investments in securities based of this cost were as
follows:
Gross unrealized appreciation $ 138,181,623
Gross unrealized depreciation (1,703,627)
-------------
Net unrealized appreciation $ 136,477,996
=============
(d) Foreign security values are stated in U.S. dollars. As of December
31, 2007, the value of foreign securities represented 0.41% of net
assets.
See accompanying notes to financial statements. (Continued)
24
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Growth Fund
December 31, 2007
- --------------------------------------------------------------------------------
Clearwater Growth Fund Portfolio Diversification
(as a percentage of net assets)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 10%
Consumer Staples 9%
Energy 12%
Financials 17%
Healthcare 11%
Industrials 12%
Information Technology 16%
Materials 4%
Services 1%
Telecom 4%
Utilities 4%
Cash equivalents and other assets/liabilities represent (1)% of net assets.
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
25
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Cap Fund
December 31, 2007
Percent
Fair of
Shares Security Cost value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
Common stocks:
Consumer discretionary:
5,000 4 KIDS ENTERTAINMENT INC (b) $ 66,823 65,750
27,000 ACCO BRANDS CORP (b) 533,774 433,080
21,250 ANDERSONS INC 869,228 952,000
77,980 ANNTAYLOR STORES CORP (b) 2,500,587 1,993,169
151,160 BUILD A BEAR WORKSHOP INC (b) 2,621,168 2,108,682
93,510 CARTER INC (b) 2,220,007 1,809,419
12,750 CBRL GROUP INC 426,948 412,973
162,570 CHARLOTTE RUSSE HLDG INC (b) 3,083,641 2,625,506
25,150 COOPER TIRE & RUBR CO 422,082 416,987
18,500 G III APPAREL GROUP LTD (b) 310,453 273,245
10,900 GAYLORD ENTMT CO NEW (b) 430,214 441,123
18,600 GYMBOREE CORP (b) 576,481 566,556
23,500 HANESBRANDS INC (b) 550,908 638,495
99,905 HELEN OF TROY LTD (b) 2,302,219 1,712,372
19,000 IDEARC INC 550,197 333,640
96,100 JO ANN STORES INC (b) 1,471,007 1,256,988
62,590 MEDIA GEN INC 1,917,920 1,330,038
12,900 ORIENT EXPRESS HOTELS LTD 441,491 742,008
37,950 RED ROBIN GOURMET BURGERS INC (b) 1,449,113 1,214,021
34,100 RETAIL VENTURES INC (b) 533,824 173,569
32,000 SAKS INC (b) 661,452 664,320
5,000 SNAP ON INC 249,153 241,200
180,710 STAGE STORES INC 3,320,596 2,674,508
17,675 STAMPS COM INC 218,881 215,282
40,000 TRIARC COS INC 616,131 349,200
26,395 TUPPERWARE BRANDS CORP 582,622 871,827
11,850 VAIL RESORTS INC (b) 430,566 637,649
13,000 WABCO HLDGS INC 614,201 651,170
16,250 WABTEC 431,366 559,650
21,000 WYNDHAM WORLDWIDE CORP 628,078 494,760
------------- --------------
31,031,132 26,859,183 10.87%
Consumer staples:
119,260 ELIZABETH ARDEN INC (b) 2,315,552 2,426,941
27,000 FLOWERS FOODS INC 511,723 632,070
32,800 LONGS DRUG STORES CORP 1,645,279 1,541,600
38,550 MEDIFAST INC (b) 173,090 186,968
41,600 MONTEREY GOURMET FOODS INC (b) 177,311 133,120
95,600 OMEGA PROTEIN CORP (b) 859,410 888,124
65,000 SALLY BEAUTY HLDGS INC (b) 562,956 588,250
41,250 SANDERSON FARMS INC 1,360,971 1,393,425
31,550 TREEHOUSE FOODS INC (b) 733,946 725,335
------------- --------------
8,340,237 8,515,832 3.45%
Energy:
24,450 ATP OIL & GAS CORPORATION (b) 1,131,418 1,235,703
11,020 ATWOOD OCEANICS INC (b) 530,192 1,104,645
20,000 COMSTOCK RES INC (b) 591,439 680,000
43,300 DENBURY RES INC (b) 163,196 1,288,175
32,000 EXCO RES INC (b) 539,990 495,360
37,595 FOREST OIL CORP (b) 1,102,608 1,911,330
18,500 GOODRICH PETE CORP (b) 575,950 418,470
7,700 GULFMARK OFFSHORE INC (b) 348,805 360,283
27,000 OMNI ENERGY SVCS CORP (b) 194,625 131,760
14,000 PLAINS EXPL & PRODTN CO (b) 615,865 756,000
53,745 SUPERIOR ENERGY SVCS INC (b) 761,961 1,849,903
16,000 T 3 ENERGY SVCS INC (b) 431,922 752,160
50,025 T.G.C. INDUSTRIES INC (b) 451,303 482,741
21,000 TESCO CORP (b) 552,977 602,070
80,500 TETRA TECHNOLOGIES INC DEL (b) 1,321,031 1,253,385
17,000 WHITING PETE CORP NEW (b) 737,774 980,220
28,500 WILLBROS GROUP INC (b) 484,446 1,091,265
------------- --------------
10,535,501 15,393,470 6.23%
Financials:
27,500 ABINGTON BANCORP INC PENN 267,193 258,500
9,450 ALEXANDRIA REAL ESTATE EQUIT 908,806 960,782
355,840 ANWORTH MTG ASSET CORP 1 2,636,587 2,939,238
See accompanying notes to financial statements. (Continued)
26
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Cap Fund
December 31, 2007
Percent
Fair of
Shares Security Cost value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
40,150 ASSOCIATED ESTATES RLTY CORP $ 476,534 379,016
30,000 BANKFINANCIAL CORP 512,714 474,600
22,000 BOSTON PRIVATE FINL HLDGS INC 656,180 595,760
28,000 BROADRIDGE FINL SOLUTIONS INC 458,289 628,040
35,196 CAPLEASE INC 294,462 296,350
20,000 CITIZENS FIRST BANCORP INC 478,265 245,400
22,200 COGDELL SPENCER INC 380,728 353,646
30,050 COMMUNITY TR BANCORP INC 947,435 827,277
23,150 CORPORATE OFFICE PPTYS TR 922,324 729,225
45,375 CRM HOLDINGS LTD (b) 342,123 355,286
57,700 EASTERN INS HLDGS INC 807,356 949,742
22,015 EASTGROUP PPTYS INC 945,620 921,328
163,280 ENCORE CAP GROUP INC (b) 1,789,084 1,580,550
47,000 EPOCH HLDG CORP 635,624 705,000
84,000 FIRST NIAGARA FINL GROUP INC 1,211,964 1,011,360
3,666 FORESTAR REAL ESTATE GROUP INC (b) 170,018 86,481
3,666 GUARANTY FINL GROUP INC (b) 109,128 58,656
34,080 HOME FED BANCORP INC MD 450,267 342,163
15,000 JEFFERSON BANCSHARES INC TENN 197,250 151,500
23,000 JEFFRIES GROUP INC NEW 596,052 530,150
45,750 KITE RLTY GROUP TR 768,534 698,603
71,151 KOHLBERG CAP CORP 1,064,630 853,812
18,850 MB FINL INC 628,262 581,146
154,320 MFA MTG INVTS INC 1,063,346 1,427,460
17,100 MID AMER APT CMNTYS INC 810,497 731,025
56,950 NATIONAL PENN BANCSHARES INC 924,360 862,223
39,995 NATIONAL RETAIL PPTYS INC 892,971 935,083
29,000 NATIONWIDE HEALTH PPTYS INC 768,112 909,730
62,150 PATRIOT CAP FDG INC 705,608 627,094
40,000 PHOENIX COS INC NEW 561,466 474,800
20,000 PMA CAP CORP (b) 189,427 164,400
20,000 PRIVATEBANKCORP INC 668,656 653,000
44,500 RENASANT CORP 947,420 959,865
32,460 SUNSTONE HOTEL INVS INC NEW 901,609 593,693
30,400 UNITED BANKSHARES INC W VA 961,794 851,808
30,244 URSTADT BIDDLE PPTYS INC 504,285 468,782
16,630 WASHINGTON FED INC 383,155 351,059
95,950 WESTFIELD FINL INC NEW 997,917 930,715
114,350 IPC HOLDINGS LTD BERMUDA (d) 2,859,099 3,301,285
------------- --------------
32,795,152 31,755,632 12.86%
Healthcare:
96,035 CENTENE CORP DEL (b) 2,032,716 2,635,200
15,000 COOPER COS INC 646,077 570,000
12,000 COVIDIEN LTD 503,805 531,480
27,700 EMERGENCY MED SVCS CORP (b) 843,311 811,056
15,000 EMERGENT BIOSOLUTIONS INC (b) 80,393 75,900
54,665 K V PHARMACEUTICAL COMPANY (b) 1,422,157 1,560,139
41,250 KENDLE INTL INC (b) 1,389,231 2,017,950
126,744 MATRIXX INITIATIVES INC (b) 2,010,709 1,763,009
22,350 MEDICIS PHARMACEUTICAL CORP 631,163 580,430
120,000 NOVAMED EYECARE INC (b) 532,341 510,000
20,600 QUESTCOR PHARMACEUTICALS INC (b) 58,253 118,862
28,485 RADIATION THERAPY SVCS INC (b) 609,935 880,471
184,405 SALIX PHARMACEUTICALS LTD (b) 2,712,360 1,453,111
88,910 SCIELE PHARMA INC (b) 1,747,000 1,818,210
62,000 SUNLINK HEALTH SYS INC (b) 532,948 373,240
22,000 WEST PHARMACEUTICAL SVCS INC 862,100 892,980
------------- --------------
16,614,499 16,592,038 6.72%
Industrials:
14,000 ACUITY BRANDS INC 504,959 630,000
27,000 AECOM TECHNOLOGY CORP (b) 628,313 771,390
36,000 ALTRA HLDGS INC (b) 544,587 598,680
15,500 AMERICAN RAILCAR INDS INC 449,588 298,375
70,536 APPLIED SIGNAL TECHNOLOGY INC 1,037,289 957,879
10,000 ARGON ST INC (b) 190,348 185,600
5,000 ASTRONICS CORP (b) 120,516 212,500
See accompanying notes to financial statements. (Continued)
27
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Cap Fund
December 31, 2007
Percent
Fair of
Shares Security Cost value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
18,500 AXSYS TECHNOLOGIES INC (b) $ 307,639 678,025
8,750 BARRET BUSINESS SVCS INC 140,785 157,588
40,050 BE AEROSPACE INC (b) 1,207,825 2,118,645
46,270 BRISTOW GROUP INC (b) 1,787,631 2,621,196
11,000 BUCYRUS INTL INC NEW 533,193 1,093,290
18,500 CHICAGO BRDG & IRON CO N V 477,116 1,118,140
8,150 COLEMAN CABLE INC (b) 80,922 77,018
22,250 COVANTA HLDG CORP (b) 429,012 615,435
60,000 DOMTAR CORP (b) 558,637 461,400
16,500 ENNIS INC 309,178 297,000
13,850 ENPRO INDS INC (b) 429,513 424,503
15,985 ESTERLINE TECHNOLOGIES CORP (b) 661,481 827,224
9,000 FLOWSERVE CORP 459,682 865,800
23,500 FOSTER L B CO (b) 542,920 1,215,655
10,500 FOSTER WHEELER LTD (b) 429,523 1,627,710
348,000 FRONTIER AIRLS HLDGS INC (b) 2,784,598 1,830,480
50,790 GARDNER DENVER INC (b) 1,946,694 1,676,070
19,950 GENESEE & WYO INC (b) 502,922 482,192
37,290 GRANITE CONSTR INC 1,746,261 1,349,152
40,000 GSI GROUP INC (b) 357,278 369,600
13,000 HARSCO CORP 678,865 832,910
46,750 HEIDRICK & STRUGGLES INTL INC 1,721,278 1,734,893
31,100 HUDSON HIGHLAND GROUP INC (b) 300,532 261,551
138,702 ICF INTL INC (b) 2,174,084 3,503,613
64,700 II VI INC 2,058,619 1,976,585
13,300 JOY GLOBAL INC 515,967 875,406
17,550 KANSAS CITY SOUTHERN (b) 461,425 602,492
48,450 KOPPERS HLDGS INC 1,906,619 2,094,978
16,800 KREISLER MFG CORP (b) 227,785 238,560
16,900 LECG CORP (b) 247,700 254,514
20,200 MCDERMOTT INTL INC (b) 481,195 1,192,406
85,000 MILLER INDS INC TENN (b) 1,228,457 1,163,650
39,000 MUELLER WTR PRODS INC 618,571 371,280
21,250 MULTI COLOR CORP 539,210 583,738
112,185 NAVIOS MARITIME HOLDINGS INC 535,672 1,374,266
29,530 NCI BLDG SYS INC (b) 1,403,834 850,169
11,500 OSHKOSH TRUCK CORP 620,667 543,490
99,950 POINT BLANK SOLUTIONS INC (b) 467,036 364,818
39,400 RBC BEARINGS INC (b) 1,371,266 1,712,324
11,000 SHAW GROUP INC (b) 545,024 664,840
7,700 STERLING CONSTR INC (b) 168,087 168,014
38,875 SUPERIOR ESSEX INC (b) 1,141,310 933,000
12,500 TENNANT CO 531,989 553,625
11,800 TEREX CORP NEW (b) 500,395 773,726
10,650 THOMAS & BETTS CORP 497,587 522,276
18,000 TIMKEN CO 583,801 591,300
10,600 TRAFFIX INC 65,846 64,872
10,000 TYCO INTERNATIONAL LTD BERMUDA (d) 510,825 396,500
2,500 ULTRALIFE BATTERIES INC (b) 35,389 50,375
191,850 VALASSIS COMMUNICATIONS INC (b) 3,211,091 2,242,727
15,000 VERSAR INC (b) 100,842 97,200
7,500 WPCS INTL INC (b) 72,502 70,950
29,950 WRIGHT EXPRESS CORP (b) 919,341 1,062,926
------------- --------------
45,611,220 52,284,515 21.17%
Information technology:
6,500 ADDVANTAGE MEDIA GROUP INC (b) 35,469 40,105
55,000 AEHR TEST SYS (b) 402,733 334,400
115,834 ALADDIN KNOWLEDGE SYSTEM LTD (b) 2,092,051 3,026,742
200,000 ALLIANCE FIBER OPTIC PRODS INC (b) 393,640 400,000
13,550 AMERICAN SOFTWARE INC 96,205 115,175
46,600 AMTECH SYS INC (b) 583,273 605,334
105,000 ANAREN INC (b) 1,658,837 1,731,450
176,035 ARRIS GROUP INC (b) 1,817,890 1,756,829
100,700 AVOCENT CORP (b) 2,955,242 2,347,317
22,500 AXT INC (b) 99,144 139,500
4,050 BLUEPHOENIX SOLUTIONS LTD (b) 72,426 72,426
64,163 BROOKS AUTOMATION INC NEW (b) 919,914 847,593
See accompanying notes to financial statements. (Continued)
28
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Cap Fund
December 31, 2007
Percent
Fair of
Shares Security Cost value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
135,000 CALIFORNIA MICRO DEVICES CORP (b) $ 569,437 626,400
10,000 CEVA INC (b) 104,559 121,700
10,000 CHORDIANT SOFTWARE INC (b) 93,263 85,500
35,000 CLICKSOFTWARE TECH LTD (b) 138,672 141,400
1,750 COMMUNICATIONS SYS 18,993 20,808
1,451,300 COVAD COMMUNICATIONS GROUP INC (b) 1,245,213 1,248,118
10,000 CRYPTOLOGIC LIMITED 185,067 175,500
41,300 DYNAMICS RESH CORP (b) 472,251 446,866
178,290 EPICOR SOFTWARE CORP (b) 2,417,762 2,100,256
50,000 EVOLVING SYS INC (b) 93,345 149,000
112,565 FAIRCHILD SEMICONDUCTOR INTL (b) 2,009,097 1,624,313
3,900 FREQUENCY ELECTRS INC 38,936 37,401
57,563 GILAT SATELLITE NETWORKS LTD (b) 603,422 592,323
450,000 GRAPHON CORP (b) 134,640 180,000
26,050 HARMONIC INC (b) 221,007 273,004
146,244 INTEGRATED DEVICE TECHNOLOGY (b) 1,798,115 1,654,020
80,000 INTERVOICE BRITE INC (b) 519,519 639,200
15,000 IPASS INC (b) 61,050 60,900
75,150 LOOKSMART LTD (b) 242,034 239,729
30,000 LSI INDS INC 523,595 546,000
123,150 MENTOR GRAPHICS CORP (b) 1,419,877 1,327,557
16,000 MICRONETICS WIRELESS INC (b) 121,525 135,520
74,250 MICROSEMI CORP (b) 1,697,694 1,643,895
70,874 MICROTUNE INC DEL (b) 310,431 462,807
30,000 NETSOL TECHNOLOGIES INC (b) 90,420 72,300
13,500 NETWORK EQUIP TECHNOLOGIES (b) 119,823 113,670
30,000 NEUSTAR INC (b) 845,792 860,400
143,580 NEWPORT CORP (b) 2,059,449 1,836,388
199,810 ON SEMICONDUCTOR CORP (b) 1,913,142 1,774,313
36,000 OPLINK COMMUNICATIONS INC (b) 476,510 552,600
13,700 PERCEPTRON INC (b) 177,104 144,809
120,000 RAMTRON INTL CORP (b) 380,976 516,000
226,450 RF MICRO DEVICES INC (b) 1,358,300 1,293,030
108,335 RUDOLPH TECHNOLOGIES INC (b) 1,632,976 1,226,352
40,000 S1 CORP (b) 238,995 292,000
193,950 SEMITOOL INC (b) 1,889,473 1,683,486
86,400 SIRF TECHNOLOGY HLDGS INC (b) 2,124,318 2,171,232
333,895 SKYWORKS SOLUTIONS INC (b) 1,760,681 2,838,108
30,000 SL INDS INC (b) 672,485 603,600
93,565 SMITH MICRO SOFTWARE INC (b) 1,143,152 792,496
6,500 SYNPLICITY INC (b) 32,659 37,700
229,394 SYPRIS SOLUTIONS INC 2,270,641 1,399,303
38,800 TECHNITROL INC 1,027,944 1,108,904
39,300 TECHWELL INC (b) 476,810 432,693
21,600 TELECOMMUNICATION SYS INC (b) 78,998 77,976
11,500 TESSCO TECHNOLOGIES INC (b) 188,856 207,690
86,300 TIER TECHNOLOGIES INC (b) 876,461 733,550
62,015 TRIDENT MICROSYSTEMS INC (b) 853,476 406,818
81,435 VERIGY LTD (b) 2,062,241 2,212,589
29,885 VIASAT INC (b) 536,530 1,028,941
------------- --------------
51,454,541 50,366,035 20.39%
Materials:
17,000 APTARGROUP INC 711,338 695,470
22,050 ARCH CHEMICALS INC 827,711 810,338
11,900 CLEVELAND CLIFFS INC 792,220 1,199,520
24,550 COMMERCIAL METALS CO 626,414 722,998
10,500 DELTIC TIMBER CORP 503,271 540,645
15,000 FOUNDATION COAL HLDGS INC 565,634 787,500
45,560 GLATFELTER 663,217 697,524
20,075 GREIF INC 1,093,191 1,312,303
16,179 HAYNES INTL INC (b) 1,216,707 1,124,441
25,000 HERCULES INC 517,543 483,750
25,460 METAL MGMT INC 1,042,399 1,159,194
29,450 NEWMARKET CORP 1,357,992 1,640,071
43,000 NORTH AMERN GALVANIZING 353,970 261,010
11,300 NORTHWEST PIPE CO (b) 216,361 442,282
79,408 PENFORD CORP 2,151,860 2,032,051
30,700 QUAKER CHEMICAL 687,986 674,479
35,025 QUANEX CORP 1,600,278 1,817,798
68,100 ROCK TENN CO 1,919,691 1,730,421
See accompanying notes to financial statements. (Continued)
29
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Cap Fund
December 31, 2007
Percent
Fair of
Shares Security Cost value (a) net assets
- -------------- --------------------------------------------------------------------- ------------- -------------- ----------
75,315 ROCKWOOD HLDGS INC (b) $ 2,381,321 2,501,964
11,000 TEMPLE INLAND INC 397,408 229,350
14,000 TEXAS INDS INC 775,328 981,400
53,905 UAP HLDG CORP 1,301,206 2,080,733
45,800 USEC INC (b) 413,504 412,200
17,500 ZEP INC (b) 250,988 242,725
------------- --------------
22,367,537 24,580,164 9.95%
Utilities:
11,900 ALLEGHENY ENERGY INC 500,010 756,959
47,300 ALLETE INC 2,100,606 1,872,134
8,700 CHESAPEAKE UTILS CORP 291,888 277,095
19,000 CLECO CORP NEW 470,134 528,200
9,500 CONNECTICUT WTR SVC INC 231,400 223,915
14,000 ITC HLDGS CORP 638,988 789,880
62,387 MDU RES GROUP INC 730,625 1,722,505
14,500 MIDDLESEX WTR CO 275,166 274,775
33,905 ONEOK INC NEW 594,527 1,517,927
42,000 PETROHAWK ENERGY CORP (b) 473,474 727,020
22,000 PORTLAND GEN ELEC CO 616,193 611,160
21,100 SOUTHWEST WTR CO 258,654 264,172
------------- --------------
7,181,665 9,565,742 3.87%
ETFs:
Commodities:
23,000 POWERSHARES DB MULTI SECTOR 601,373 758,770
------------- --------------
601,373 758,770 0.31%
Cash equivalents:
25,353,696 SSGA MONEY MARKET FUND, current rate 4.61% 25,353,696 25,353,696 10.27%
------------- -------------- --------
Grand Total (c) $ 251,886,553 262,025,076 106.09%
============= ============== ========
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) At December 31, 2007, the cost for Federal income tax purposes was
$251,955,963. The aggregate gross unrealized appreciation and
depreciation of investments in securities based on this cost were as
follows:
Gross unrealized appreciation $ 30,925,041
Gross unrealized depreciation (20,855,928)
--------------
Net unrealized appreciation $ 10,069,113
==============
(d) Foreign security values are stated in U.S. dollars. As of December
31, 2007, the value of foreign securities represented 1.50% of net
assets.
See accompanying notes to financial statements. (Continued)
30
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Small Cap Fund
December 31, 2007
- --------------------------------------------------------------------------------
Clearwater Small Cap Fund Portfolio Diversification
(as a percentage of net assets)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 11%
Consumer Staples 3%
Energy 6%
Financials 13%
Healthcare 7%
Industrials 21%
Information Technology 20%
Materials 10%
Utilities 4%
Cash equivalents and other assets/liabilities 5%
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
31
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2007
Percent
Maturity Coupon Fair of
Par/Shares Security date rate Cost value (a) net assets
- ---------- ----------------------------------------------------- ---------- ------ ------------- ----------- ----------
Closed-end funds:
14,200 BLACKROCK MUNI YIELD $ 179,537 177,358
45,800 BLACKROCK MUNIHOLDINGS FL INSD 581,019 572,958
59,500 BLACKROCK MUNIHOLDINGS INSD FD 749,861 713,405
50,100 BLACKROCK MUNIYIELD FLA FD INC 663,132 636,270
1,300 BLACKROCK INSD MUN 2008 20,579 19,539
78,300 BLACKROCK MUNIYIELD INSD FD 1,032,557 994,410
54,700 BLACKROCK MUNIYIELD PA INSD 774,527 746,108
28,100 BLACKROCK MUNIYIELD QUALITY FD 333,747 325,960
43,800 BLACKROCK MUNIYIELD MI INSD FD 600,209 578,598
23,300 BLACKROCK MUNIYIELD MICH INSD 291,910 291,250
7,900 DTF TAX FREE INCOME INC 112,142 110,837
189,900 DWS MUN INCOME TR 2,088,622 2,011,041
19,300 EATON VANCE FLA MUN INCOME TR 272,752 247,040
1,100 EATON VANCE INSD MI MUN BD FD 15,510 14,905
2,400 EATON VANCE NJ MUN INCOME TR 32,386 30,840
83,800 INSURED MUN INCOME FD 1,122,241 1,064,260
58,900 INVESTMENT GRADE MUNI INC FD 803,346 758,632
90,000 MBIA CAP CLAYMORE MANAGED 1,162,120 1,117,800
6,600 MORGAN STANLEY DEAN WITTER 57,553 55,836
41,500 MSDW QUAL MUNI INVESTMENT TR 534,041 524,560
9,100 NEUBERGER BERMAN INTER MUN FD 119,152 117,299
77,300 NUVEEN FLA INVT QUALITY MUN FD 1,054,571 1,000,262
13,500 NUVEEN INSD DIVID ADVANTAGE 181,771 182,790
4,800 NUVEEN MASS PREM INCOME MUN FD 65,734 61,104
10,600 NUVEEN MICH PREM INCOME MUN FD 143,655 135,150
15,500 NUVEEN N J INVT QUALITY MUN FD 211,528 200,725
26,900 NUVEEN PREM INCOME MUN FD 2 381,052 365,840
27,100 NUVEEN PREMIER INC 367,653 349,048
124,100 NUVEEN FLA QUALITY INCOME MUN 1,726,853 1,618,264
48,500 NUVEEN PA INVT QUALITY MUN FD 673,352 630,985
34,888 PUTNAM INVT GRADE MUN TR 342,110 331,436
23,769 PUTNAM MUNICIPAL BOND FUND 284,313 278,810
27,898 PUTNAM MUN OPPORTUITIES TR 328,894 313,016
129,600 SELIGMAN SELECT MUN FD INC 1,299,178 1,275,264
35,900 VAN KAMPEN MERRITT ADVANTAGE 443,969 435,467
44,100 VAN KAMPEN MERRITT PA 618,549 572,859
5,400 VAN KAMPEN MERRITT SELECT SECT 65,756 63,504
31,977 VAN KAMPEN MERRITT TR INVT 476,537 440,963
29,800 WESTERN ASSET PARTNERS FD INC 389,379 394,552
22,000 WESTERN ASSET MGNT MUNS FD INC 240,488 238,920
------------- -----------
20,842,286 19,997,865 5.93%
Municipal bonds:
950,000 ABILENE TX HLTH FACS DEV CORP (b) 11/15/2028 5.250 $ 950,046 923,828
300,000 AGUA CAIENTE BAND 7/1/2008 4.600 300,505 300,057
575,000 AJCKSONVILLE FL ECONOMIC DEV 9/1/2017 6.000 575,000 575,362
200,000 ALABAMA SPL CARE FACS FING 11/1/2019 5.000 210,075 206,160
1,250,000 ALABAMA ST UNIV REV 8/1/2028 5.250 1,302,238 1,323,850
350,000 ALASKA INDL DEV & EXPT AUTH 12/1/2010 5.400 350,000 345,776
250,000 ALASKA INDL DEV & EXPT AUTH CM 12/1/2011 5.450 250,000 246,470
250,000 ALASKA ST HSG FIN CORP 12/1/2030 5.000 259,752 257,125
250,000 ALBANY NY INDL DEV AGY CIVIC 4/1/2020 5.000 255,571 241,210
300,000 ALBANY NY INDL DEV AGY CIVIC 5/1/2016 6.500 300,000 255,162
250,000 ALBEMARLE NC HOSP AUTH HEALTH 10/1/2021 5.250 257,085 252,775
500,000 ALEXANDRIA VA REDEV & HSG AUTH 10/1/2029 6.125 528,676 517,075
300,000 ALLEGHENY CNTY PA HOSP DEV 4/1/2008 3.300 299,671 299,136
340,000 ALLEGHENY CNTY PA HOSP DEV 4/1/2009 3.500 337,958 336,117
350,000 ALLEGHENY CNTY PA HOSP DEV 4/1/2010 3.875 346,120 345,055
250,000 AMHERST NY INDL DEV AGY CIVICF 1/1/2013 4.875 250,000 241,505
500,000 ANDERSON IN ECONOMIC DEV REV 10/1/2021 4.750 495,497 475,460
500,000 ANNAPOLIS MD ECONOMIC DEV REV 10/1/2027 5.000 512,768 483,690
250,000 ANNAWAN IL TAX INCREMENT REV 1/1/2018 5.625 250,000 239,603
470,000 ARBOR GREENE CMNTY DEV DIST FL 5/1/2019 5.000 479,356 486,727
500,000 ARIZONA HEALTH FACS AUTH 10/1/2010 4.750 500,000 491,135
790,807 ARIZONA HEALTH FACS AUTH REV 7/1/2027 5.250 805,886 783,216
800,000 ARIZONA HEALTH FACS AUTH REV 11/15/2009 6.500 800,000 833,552
See accompanying notes to financial statements. (Continued)
32
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2007
Percent
Maturity Coupon Fair of
Par/Shares Security date rate Cost value (a) net assets
- ---------- ----------------------------------------------------- ---------- ------ ------------- ----------- ----------
1,750,000 ARLINGTON TX SPL OBLIG 8/15/2034 5.000 $ 1,882,176 1,825,338
400,000 ASHEVILLE N C CTFS PARTN 6/1/2018 5.125 405,960 404,524
600,000 ATLANTA GA DEV AUTH REV 1/1/2031 5.000 614,413 591,930
900,000 ATLANTA GA TAX ALLOCATION 1/1/2020 5.400 894,208 881,730
650,000 ATOKA CNTY OK 10/1/2018 5.875 641,573 631,352
375,000 AUSTIN TX 1/1/2009 6.000 379,914 378,705
50,000 AUSTIN TX UTIL SYS REV 5/15/2018 5.250 50,100 50,073
500,000 AUSTIN TX WTR & WASTEWATER SYS 5/15/2027 5.125 516,550 512,135
400,000 AVE MARIA STEWARDSHIP CMNTY 11/1/2012 4.800 399,578 368,168
370,000 BADGER TOB ASSET SECURITIZATIO 6/1/2027 6.125 379,195 382,965
735,000 BADGER TOB ASSET SECURITIZATIO 6/1/2017 6.000 764,332 747,039
150,000 BANSON COMM PK CMNTY IMPT 6/1/2010 5.000 149,153 149,775
250,000 BAPTIST RD RRAL TRANSN AUTH CO 12/1/2017 4.800 250,000 232,353
50,000 BAY AREA GOVT ASSOC CA REV 12/15/2014 6.000 51,396 50,670
570,000 BEDFORD PARK IL TAX INCREMENT 1/1/2012 4.625 567,946 561,119
500,000 BELMONT CMNTY DEV DIST FL 11/1/2014 5.125 499,266 455,415
115,000 BENTON HARBOR MI CHARTER 5/1/2009 10.000 115,000 113,596
500,000 BERKELEY CNTY S C SCH DIST INS 12/1/2019 5.250 521,732 516,650
250,000 BERKELEY CNTY SC SCH DIST 12/1/2028 5.000 251,244 247,430
500,000 BERKELEY CNTY SC SCH DIST 12/1/2024 5.250 519,256 509,900
750,000 BERKELEY CNTY SC SCH DIST 12/1/2020 5.000 760,633 767,850
300,000 BEXAR CNTY TX HLTH FACS DEVCP 7/1/2027 5.000 309,842 282,024
250,000 BEXAR CNTY TX HSG FIN CORP 12/1/2021 6.500 269,761 261,505
250,000 BEXAR CNTY TX HSG FIN CORP MF 6/1/2011 5.500 247,269 239,090
495,000 BEXAR CNTY TX HSG FIN CORP MF 9/15/2021 8.750 495,000 518,423
590,000 BEXAR CNTY TX HSG FIN CORP MF 8/1/2030 8.125 568,629 571,026
835,000 BEXAR CNTY TX HSG FIN CORP MF (b) 4/1/2030 9.000 832,401 769,453
965,000 BEXAR CNTY TX HSG FIN CORP MF 12/1/2036 9.250 941,215 968,542
1,005,000 BEXAR CNTY TX HSG FIN CORP MF (b) 6/1/2031 10.500 1,005,000 502,239
590,000 BEXAR CNTY TX REV 8/15/2022 5.750 619,969 618,715
500,000 BI STATE DEV AGY MO IL MET 10/1/2033 5.250 503,771 503,070
350,000 BIRMINGHAM BAPTIST MED CTR AL 11/15/2030 5.000 357,880 320,761
140,000 BIRMINGHAM SOUTHERN COLLEGE AL 12/1/2025 6.125 142,892 140,239
500,000 BIRMINGHAM SOUTHERN COLLEGE AL 12/1/2019 5.350 505,534 500,130
500,000 BISMARCK STATE COLLEGE 4/1/2032 5.010 509,127 466,980
300,000 BLOUNT CNTY TN HEALTH & EDL 4/1/2012 4.750 299,298 289,845
250,000 BLUE ASH OH TAX INCREMENT 12/1/2021 5.000 253,421 250,093
500,000 BOONE CNTY IND REDEV DIST TAX 8/1/2023 5.375 506,275 511,650
750,000 BOONE CNTY IND REDEV DIST TAX 8/1/2028 5.000 740,478 724,710
750,000 BRAZOS CNTY TX HEALTH FAC DEV 1/1/2032 5.375 772,898 751,905
400,000 BRAZOS RIV TX HBR NAV DIST 5/15/2033 4.950 400,000 377,796
650,000 BREMER CNTY IA RETIREMENT FAC 11/15/2030 4.500 650,000 645,041
500,000 BREVARD CNTY FL HEALTH FACS 4/1/2036 5.000 465,690 476,355
314,000 BRIDGEVILLE DEL SPL OBLIG 7/1/2035 5.125 314,000 313,218
250,000 BROWNSBURG IND REDEV AUTH ECON 2/1/2029 4.700 250,000 238,748
250,000 BROWNSBURG IND REV AUTH 8/1/2024 4.625 250,000 246,010
100,000 BROWNSVILLE TX (c) 2/15/2011 4.890 85,162 82,793
750,000 BUCKEYE OH TOB SETTLEMENT 6/1/2024 5.125 720,478 710,115
165,000 BULLHEAD CITY AZ SPL ASSMT 1/1/2010 6.100 165,876 166,073
395,000 BUTLER CNTY PA 10/1/2034 4.761 395,000 367,338
150,000 CALIFORNIA CMNTYS HSG FIN AGY 8/1/2012 4.650 149,726 148,923
180,000 CALIFORNIA CMNTYS HSG FIN AGY 12/1/2011 5.000 179,727 178,245
260,000 CALIFORNIA CMNTYS HSG FIN AGY 11/1/2012 4.850 259,064 258,885
400,000 CALIFORNIA CMNTYS HSG FIN AGY 10/1/2011 5.000 399,416 396,088
180,000 CALIFORNIA CNTY 6/1/2023 5.625 172,225 177,259
500,000 CALIFORNIA CNTY CA 6/1/2036 5.000 494,750 430,660
200,000 CALIFORNIA CNTY CA TOB SECTZTN 6/1/2021 4.500 197,420 188,342
410,000 CALIFORNIA CNTY CALIF TOB 6/1/2019 4.750 396,822 399,098
500,000 CALIFORNIA HEALTH FACS FING 4/1/2010 5.300 511,564 512,900
500,000 CALIFORNIA HEALTH FACS FING AU 3/1/2033 5.000 506,779 489,450
750,000 CALIFORNIA MUN FIN AUTH ED REV 6/1/2026 5.250 744,118 712,193
40,000 CALIFORNIA ST 10/1/2020 5.250 41,077 40,180
275,000 CALIFORNIA ST DEPT WTR RES 12/1/2022 5.000 277,084 278,025
120,000 CALIFORNIA ST DEPT WTR RES CEN 12/1/2027 5.375 125,388 120,755
350,000 CALIFORNIA STATEWIDE CMNTYS 9/1/2029 6.000 350,000 350,602
750,000 CALIFORNIA STATEWIDE CMNTYS 3/1/2035 5.000 757,500 744,990
750,000 CALIFORNIA STATEWIDE CMNTYS 4/1/2037 5.125 758,478 687,405
750,000 CALIFORNIA STATEWIDE CMNTYS 6/1/2017 5.400 747,224 753,533
500,000 CAMERON TX ED CORP REV 8/15/2021 5.000 495,600 470,055
See accompanying notes to financial statements. (Continued)
33
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2007
Percent
Maturity Coupon Fair of
Par/Shares Security date rate Cost value (a) net assets
- ---------- ----------------------------------------------------- ---------- ------ ------------- ----------- ----------
80,000 CAPE GIRARDEAU CNTY MO INDL 6/1/2032 5.750 $ 83,054 80,786
750,000 CAPITAL TR AGY FL MULTIFAMILY 6/1/2038 5.875 763,659 687,218
485,000 CAPITAL TR AGY FLA MULTIFAMILY 6/1/2013 4.750 485,000 463,000
1,402,977 CARLSBAD NM INDL DEV REV 4/15/2021 5.750 1,445,953 1,402,191
230,000 CARSON CITY NV HOSP REV 9/1/2031 5.750 240,013 231,359
750,000 CARTHAGE MO HOSP REV 4/1/2010 4.500 739,777 725,820
245,000 CATTARAUGUS CNTY NY INDL DEV 8/1/2023 5.250 254,111 249,574
1,130,000 CENTRAL FALLS RI DETENTION FAC 1/15/2009 6.000 1,130,000 1,128,621
305,000 CENTRAL NINE IN CAREER CTR BLG 1/15/2015 5.500 324,167 329,675
140,000 CHANDLER PARK ACADEMY MICH PUB 11/1/2022 5.000 133,430 131,534
270,000 CHARLESTON CNTY SC HOSP FACS 10/1/2019 5.500 278,109 272,732
400,000 CHARTIERS VALLEY PA INDL 8/15/2012 5.000 397,542 404,232
500,000 CHATHAM CNTY GA HOSP AUTH REV 1/1/2034 5.500 521,356 457,795
500,000 CHEROKEE NATION OK HLTHCARE 12/1/2021 4.600 500,000 446,515
250,000 CHESTERFIELD CNTY VA INDL DEV 6/1/2017 5.875 256,675 264,358
450,000 CHESTERFIELD CNTY VA INDL DEV 7/1/2019 5.200 412,678 461,921
20,000 CHICAGO IL MET HSG DEV CORP 7/1/2022 6.850 20,630 20,608
1,000,000 CHICAGO IL TAX INCREMENT 12/1/2008 6.500 994,552 1,021,290
750,000 CHICKASAW NATION OK 12/1/2017 5.375 750,000 761,310
295,000 CINCO TX MUN UTIL DIST NO 1 12/1/2017 4.600 295,727 295,215
500,000 CITIZEN POTAWATOMI NATION OK 9/1/2016 6.500 500,000 522,055
250,000 CLARK CNTY NV ECONOMIC DEV REV 5/15/2033 5.375 254,475 251,663
455,000 CLARK CNTY NV IMPT DIST 2/1/2019 5.000 456,944 422,882
500,000 CLARK CNTY NV POLLUTN CTL REV 10/1/2011 5.300 500,000 493,700
500,000 CLEVELAND CUYAHOGA CNTY OH 5/15/2023 5.250 500,000 484,340
150,000 CLEVELAND OH WTRWKS REV 1/1/2023 5.000 153,044 151,500
235,000 COLORADO EDL & CULTURAL FACS 6/15/2012 4.625 231,760 234,854
95,000 COLORADO HEALTH FACS AUTH REV 12/1/2010 6.250 95,000 99,654
295,000 COLORADO HEALTH FACS AUTH REV 12/1/2008 4.400 294,215 295,475
600,000 COLORADO HEALTH FACS AUTH REV 9/15/2022 5.000 593,188 572,004
750,000 COMPARK BUSINESS CAMPUS 12/1/2027 5.750 766,984 785,753
280,000 CONCORDE ESTATES CMNTY DEV DIS 5/1/2011 5.000 279,144 275,058
250,000 CONNECTICUT ST 7/1/2025 5.000 254,805 249,423
1,250,000 CONNECTICUT ST DEV AUTH POLLTN WST MA 9/1/2028 5.850 1,323,487 1,279,138
1,870,000 CONNECTICUT ST DEV AUTH POLLTN CT LT & PWR 9/1/2028 5.850 1,938,308 1,913,590
400,000 CONNERTON W CMNTY DEV DIST FL 5/1/2016 5.125 399,296 358,928
225,000 COOLIDGE AZ UNI SCH DIST 10/1/2010 4.150 224,420 225,029
250,000 CORALVILLE IA 6/1/2018 5.000 247,986 260,945
643,000 CORTLAND IL SPL TAX REV 3/1/2017 5.500 637,324 628,533
100,000 COW CREEK BAND UMPQUA TRIBE (b) 5/1/2035 5.000 100,000 99,628
1,070,000 CROW FIN AUTH MINN TRIBAL PUR 10/1/2017 5.650 1,017,742 1,092,866
482,000 DALLAS TX HSG FIN CORP 10/20/2032 6.750 497,308 508,028
750,000 DAYTON OH SPL FACS REV 2/1/2018 5.625 796,500 765,788
250,000 DENHAM SPRINGS LIVN HSG & MTG 11/1/2040 5.000 260,559 256,408
750,000 DENVER CO CONVENTION CTR 12/1/2026 5.125 783,887 767,220
500,000 DENVER COLO CONVENTION CTR 12/1/2030 5.000 513,060 503,695
585,000 DETROIT CMNTY HIGH SCH MI 11/1/2010 5.000 585,000 578,963
500,000 DETROIT LAKES MN HSG & HEALTH 8/1/2034 4.250 500,000 489,980
500,000 DINUBA CA FING AUTH LEASE REV 9/1/2038 5.375 494,419 452,175
1,250,000 DIRECTOR ST NV DEPT BUSINESS 11/15/2014 6.000 1,236,101 1,033,000
750,000 DISTRICT COLUMBIA REV 6/1/2026 5.000 767,916 675,930
500,000 DORCHESTER CNTY S C SCH DIST 12/1/2029 5.250 505,875 506,920
495,000 DURBIN CROSSING CMNTY DEV 11/1/2010 4.875 494,632 472,542
300,000 EAST BATON ROUGE 10/1/2028 4.500 300,000 288,810
500,000 EAST BATON ROUGE LA MTG FIN 10/1/2024 4.625 500,000 501,915
1,000,000 EAST POINT GA 2/1/2026 8.000 1,139,228 1,098,940
150,000 EAST ROCHESTER NY HSG AUTH REV 8/15/2028 5.250 158,000 157,778
800,000 EDEN PRAIRIE MN MLT FAM HSG 2/20/2043 6.200 874,558 858,848
325,000 EL PASO CNTY TEX HSG FIN CORP 12/1/2015 7.000 325,000 325,075
300,000 EL PASO TX HEALTH FACS DEV 8/15/2012 7.000 300,000 326,034
500,000 ERIE CNTY OH HOSP FACS REV 8/15/2013 6.000 535,171 543,090
500,000 ERNEST N MORIAL NEW ORLEANS LA 7/15/2028 5.250 512,624 546,730
500,000 ESTHERVILLE IA HOSP REV 7/1/2020 6.300 508,744 523,115
3,000,000 FARGO N D UNIV FACS REV 11/29/2027 5.110 3,050,375 3,002,010
500,000 FARMINGTON N MEX HOSP REV 6/1/2022 5.000 510,519 502,780
170,000 FARMINGTON NM POLLUTN CTL REV 4/1/2022 5.800 173,541 170,598
750,000 FARMS NEW KENT VA 3/1/2036 5.125 750,000 653,483
250,000 FIDDELERS BUSINESS IMPT DIST 12/1/2032 5.000 256,317 209,260
315,000 FIDDLERS CREEK CMNTY DEV DIST 5/1/2013 5.750 313,206 313,844
See accompanying notes to financial statements. (Continued)
34
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2007
Percent
Maturity Coupon Fair of
Par/Shares Security date rate Cost value (a) net assets
- ---------- ----------------------------------------------------- ---------- ------ ------------- ----------- ----------
400,000 FLAGSTAFF AZ 1/1/2022 5.000 $ 401,878 402,264
700,000 FLORIDA ST BRD ED CAP OUTLAY 6/1/2021 4.750 705,042 701,687
350,000 FLORIDA ST DIV BD FIN DEPT 7/1/2011 5.000 362,286 353,259
1,250,000 FOREST CREEK CMNTY DEV DIST 5/1/2011 4.850 1,249,016 1,183,425
250,000 FORT BEND CNTY TX LEVEE IMPT 9/1/2032 5.000 250,240 236,765
500,000 FULTON CNTY GA DEV AUTH 11/1/2028 5.250 492,184 451,025
300,000 FULTON CNTY PA INDL DEV AUTH 7/1/2009 5.300 299,731 296,955
330,000 FULTON CNTY PA INDL DEV AUTH 7/1/2011 5.375 329,304 325,941
325,000 GALVESTON CNTY TX HEALTH FACS 11/1/2014 5.000 331,353 326,804
1,000,000 GALVESTON CNTY TX MUN UTIL 8/13/2008 6.000 1,000,000 1,017,840
500,000 GARDEN GROVE CA CTFS PARTN 8/1/2023 5.700 513,221 501,635
500,000 GARZA CNTY TX PUB FAC CORP 10/1/2016 5.500 513,043 501,850
750,000 GARZA CNTY TX PUB FAC CORP 10/1/2011 5.000 753,133 745,268
370,000 GATEWAY SVCS CMNTY DEV DIST FL 5/1/2010 5.500 368,251 369,922
400,000 GEISINGER AUTH PA HLTH SYS REV 5/1/2037 4.831 400,000 348,900
355,000 GENESEE CNTY NY INDL DEV 12/1/2014 4.750 355,000 337,779
20,000 GEORGIA MUN ELEC AUTH PWR REV (c) 1/1/2012 4.743 16,199 15,595
200,000 GLENDALE AZ INDL DEV AUTH REV 5/15/2028 5.375 203,174 201,958
1,000,000 GOLDEN ST 6/1/2047 5.125 846,041 844,100
1,000,000 GOLDEN ST TOB SECURITIZATION (c) 6/1/2022 1.294 830,284 874,540
1,750,000 GOLDEN ST TOB SECURITIZATION 6/1/2019 5.000 1,815,285 1,757,403
395,000 GRAVOIS BLUFFS TRANSN DEV MO 5/1/2018 4.000 391,686 391,058
500,000 GREENVILLE CNTY S C SCH DIST 12/1/2028 5.000 518,769 510,985
495,000 GROVE CITY PA AREA HOSP AUTH 7/1/2012 5.250 493,498 495,351
320,000 HARRIS CNTY TEX MUN UTIL DIST 9/1/2018 5.000 320,772 320,074
300,000 HARRISBURG PA AUTH UNIV REV 9/1/2016 5.400 300,000 303,183
250,000 HARRISONVILLE MO ANNUAL 11/1/2028 4.625 241,707 231,888
1,000,000 HARTLAND MI CONS SCH DIST 5/1/2029 5.125 1,023,007 1,023,030
350,000 HARVEY IL 12/1/2027 5.500 359,661 345,191
360,000 HEALTH CARE AUTH FOR BAPTIST H 11/15/2018 5.000 372,431 364,536
1,500,000 HENDERSON NV LOC IMPT DISTS 9/1/2010 4.500 1,500,000 1,449,660
145,000 HERITAGE ISLE AT VIERA CMNTY 11/1/2009 5.000 144,930 145,017
215,000 HERITAGE ISLE AT VIERA CMNTY 11/1/2013 5.000 214,535 199,974
775,000 HIGHLANDS CNTY FLA HEALTH FACS 11/15/2027 5.000 789,966 765,344
500,000 HILLSBOROUGH CNTY FL INDL DEV 10/1/2024 5.250 512,580 503,530
500,000 HIMALAYA WTR & SANTN DIST CO 12/1/2035 5.000 513,555 493,680
400,000 HOUMA TERR PUB TR FINAUTH LA 12/1/2040 5.150 418,867 414,916
250,000 HOWARD CNTY MD RETIREMENT 4/1/2027 5.250 256,626 226,490
750,000 HUNTSVILLE AL HEALTH CARE AUTH 6/1/2022 5.625 786,319 775,380
400,000 HUNTSVILLE REDSTONE VLG AL 1/1/2015 5.250 400,000 385,376
500,000 HURON CNTY OH HOSP FACS REV 12/1/2022 5.000 502,216 504,280
110,000 IDAHO HEALTH FACS AUTH HOSP 8/1/2010 6.000 110,493 109,772
120,000 IDAHO HEALTH FACS AUTH HOSP 8/1/2009 5.750 120,429 119,412
245,000 IDAHO HSG & FIN ASSN 8/1/2017 6.250 245,000 242,986
240,000 IDAHO HSG & FIN ASSN NON PROFI 8/1/2010 5.750 240,000 239,786
170,000 ILLINOIS DEV FIN AUTH POLLUTN 2/1/2024 5.700 174,339 172,553
730,000 ILLINOIS DEV FIN AUTH POLLUTN 3/1/2014 5.500 738,039 730,088
100,000 ILLINOIS DEV FIN AUTH REV 7/1/2008 5.800 100,506 100,811
240,000 ILLINOIS DEV FIN AUTH REV 7/1/2009 5.900 241,808 243,168
250,000 ILLINOIS DEV FIN AUTH REV 5/15/2021 5.500 259,842 253,973
475,000 ILLINOIS DEV FIN AUTH REV 7/1/2019 6.050 476,611 479,669
750,000 ILLINOIS EDL FACS AUTH 7/1/2038 5.125 765,736 762,383
400,000 ILLINOIS FIN 11/15/2016 5.400 395,805 382,216
500,000 ILLINOIS FIN 3/15/2027 5.000 523,887 509,385
500,000 ILLINOIS FIN AUTH ED REV 9/1/2027 5.000 509,168 430,680
150,000 ILLINOIS FIN AUTH REV 12/1/2036 5.000 152,036 131,276
250,000 ILLINOIS FIN AUTH REV 5/15/2038 5.750 257,409 227,870
250,000 ILLINOIS FIN AUTH REV 12/1/2021 5.000 256,679 238,293
375,000 ILLINOIS FIN AUTH REV 4/1/2026 5.000 381,994 364,478
500,000 ILLINOIS FIN AUTH REV 5/15/2012 5.100 498,054 486,880
500,000 ILLINOIS FIN AUTH REV 2/15/2038 5.875 506,247 462,095
500,000 ILLINOIS FIN AUTH REV 2/15/2038 5.400 500,000 487,975
500,000 ILLINOIS FIN AUTH REV 11/15/2016 5.000 514,425 493,805
600,000 ILLINOIS FIN AUTH REV 5/15/2012 5.250 603,445 589,524
610,000 ILLINOIS FIN AUTH REV 8/15/2026 6.000 625,694 594,610
650,000 ILLINOIS FIN AUTH REV 5/15/2015 5.250 659,894 623,305
750,000 ILLINOIS FIN AUTH REV 11/15/2035 5.000 750,000 735,443
750,000 ILLINOIS FIN AUTH REV 5/15/2026 5.750 726,778 701,160
875,000 ILLINOIS FIN AUTH REV 2/1/2037 5.250 873,187 836,071
See accompanying notes to financial statements. (Continued)
35
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2007
Percent
Maturity Coupon Fair of
Par/Shares Security date rate Cost value (a) net assets
- ---------- ----------------------------------------------------- ---------- ------ ------------- ----------- -----------
1,250,000 ILLINOIS FIN AUTH REV 11/15/2022 5.250 $ 1,247,340 1,286,800
440,000 ILLINOIS FIN AUTH SPORTS FAC 12/1/2035 7.000 436,579 428,560
500,000 ILLINOIS FN AUTH REV 11/15/2026 5.250 515,145 468,395
500,000 ILLINOIS HEALTH FACS AUTH REV 2/15/2037 5.150 502,212 503,975
1,000,000 ILLINOIS HEALTH FACS AUTH REV 11/15/2031 6.500 1,000,000 1,000,000
1,095,000 ILLINOIS HEALTH FACS AUTH REV 5/15/2032 5.500 1,123,886 1,071,206
2,000,000 ILLINOIS HEALTH FACS AUTH REV 8/15/2033 5.100 2,066,433 2,014,940
500,000 ILLINOIS HSG DEV AUTH 7/1/2028 4.800 500,000 502,085
250,000 ILLINOIS ST SALES TAX REV 6/15/2009 5.000 252,521 250,368
500,000 ILLNOIS FIN AUTH SPORTS FAC RE 10/1/2037 6.250 483,621 461,450
750,000 ILLNOIS FIN AUTH SPORTS FAC RE 10/1/2027 6.125 729,083 700,335
500,000 INDIANA HEALTH & EDL FAC 2/15/2036 5.250 503,327 491,670
750,000 INDIANA HEALTH & EDL FAC 3/1/2022 5.500 762,344 742,305
250,000 INDIANA HEALTH & EDL FAC FING 11/15/2025 5.250 255,436 250,223
190,000 INDIANA HLTH FAC FING AUTH REV 8/15/2018 5.000 170,721 190,939
620,000 INDIANA HLTH FAC FING AUTH REV 8/15/2009 4.750 603,460 626,770
300,000 INDIANA HLTH FAC HOSP REV 1/1/2023 6.000 306,408 300,249
350,000 INDIANA HLTH FAC HOSP REV 2/15/2018 5.250 359,680 354,284
280,000 INDIANA ST DEV FIN AUTH POLLUT 3/1/2030 5.000 281,181 280,255
250,000 INDUSTRY CA URBAN DEV AGY 5/1/2021 4.750 254,745 254,423
300,000 INTERCOMMUNITY HOSP AUTH CA CT 11/1/2019 5.250 311,750 295,692
200,000 INTERLOCKEN MET DIST CO 12/15/2019 5.750 205,555 209,988
300,000 INTERLOCKEN MT CIST CO 12/15/2019 5.750 318,442 314,982
2,500,000 INTERMEDIATE SCH DIST 287 MN 11/1/2032 5.295 2,547,076 2,364,575
1,000,000 INTERMEIDIATE SCH DIST 287 MN 1/1/2028 5.460 1,021,905 979,160
200,000 IOWA FIN AUTH RETIREMENT CMNTY 11/15/2009 4.250 199,111 194,580
200,000 IOWA FIN AUTH RETIREMENT CMNTY 11/15/2011 4.750 198,255 193,232
225,000 IOWA FIN AUTH SR HSG REV 11/1/2011 5.000 225,000 218,349
400,000 IOWA FIN AUTH SR HSG REV 12/1/2014 5.000 396,968 377,388
500,000 IOWA FIN AUTH SR LIVING FAC 11/15/2027 5.500 511,853 453,400
500,000 JACKSONVILLE FL 3/1/2047 4.550 500,000 439,595
500,000 JACKSONVILLE FL HLTH FACS REV 11/1/2027 5.000 482,295 488,590
500,000 JACKSONVILLE FL HLTH FACS REV 11/1/2022 5.000 494,816 502,475
250,000 JEFFERSON PARISH LA FIN AUTH 6/1/2033 5.000 263,857 257,278
250,000 JEFFERSON PARISH LA FIN AUTH 12/1/2048 5.700 263,848 264,253
1,750,000 JEFFERSON PARISH LA FIN AUTH R 6/1/2038 5.000 1,849,746 1,738,555
250,000 JOHNSON CITY TN HEALTH & EDL 2/15/2009 4.500 249,320 247,115
700,000 JOPLIN MO INDL DEV AUTH 5/15/2017 5.500 710,184 679,273
290,000 JOPLIN MO INDL DEV AUTH HEALTH 2/15/2008 4.000 290,230 289,965
280,000 JUBAN PARK CMNTY DEV DIST LA 10/1/2014 5.150 280,000 269,097
1,500,000 KALISPEL TRIBE INDIANS 1/1/2016 6.200 1,500,000 1,498,350
250,000 KANSAS CITY MO TAX INCREMENT 3/1/2012 5.000 248,600 249,473
1,000,000 KENT HOSP FIN AUTH MICH REV 7/1/2035 6.000 1,065,274 1,023,300
250,000 KENTWOOD MI ECONOMIC DEV 11/15/2036 5.375 261,366 223,495
700,000 KENTWOOD MI ECONOMIC DEV 11/15/2026 5.250 710,564 645,204
2,750,000 KERRVILLE TEX HEALTH FACS 8/15/2035 5.450 2,739,419 2,573,285
605,000 KERSHAW CNTY SC PUB SCHS 12/1/2025 5.000 618,231 620,512
1,510,000 KING CNTY WA 1/1/2030 5.000 1,519,201 1,526,414
350,000 KLICKITAT CNTY WA PUB HOSP 12/1/2020 6.000 350,000 352,580
500,000 KNOX CNTY TN HEALTH EDL & HSG 4/1/2027 5.250 516,623 496,665
400,000 KRONENWETTER WI 3/1/2017 5.000 404,692 401,268
500,000 KRONENWETTER WI REDEV AUTH 6/1/2008 4.800 501,109 502,630
1,098,000 LAFAYETTE LA PUB TR FING AUTH 1/1/2041 5.350 1,142,779 1,158,884
490,000 LAKE ASHTON II CMNTY DEV DIST 11/1/2010 4.875 490,650 488,775
650,000 LAKELAND FL HOSP SYS REV 11/15/2032 5.000 661,605 621,023
250,000 LANCASTER CNTY PA HOSP AUTH 11/1/2026 5.000 261,761 248,175
400,000 LANCASTER CNTY PA HOSP AUTH 7/1/2012 5.200 399,672 400,444
1,000,000 LANCASTER CNTY PA HOSP AUTH 7/1/2022 6.100 997,100 1,000,710
400,000 LANGSTON OK ECONOMIC DEV AUTH 5/1/2026 5.250 414,313 371,708
250,000 LEBANON CNTY PA HEALTH FACS 12/15/2008 4.000 250,000 247,165
250,000 LEE CNTY FL INDL DEV AUTH 11/15/2029 5.000 256,190 221,278
750,000 LEE CNTY FL INDL DEV AUTH REV 6/15/2027 5.250 754,936 666,600
350,000 LEE CNTY FL WTR & SWR REV 10/1/2027 5.000 354,026 359,650
250,000 LEHIGH CNTY PA GEN PURP AUTH 8/15/2042 5.081 250,000 216,338
245,000 LEWIS CNTY WA PUB HOSP DIST 12/1/2011 6.000 246,357 245,448
45,000 LEWISVILLE TX INDPT SCH DIST 8/15/2025 5.000 45,877 46,525
250,000 LITTLE ELM TX 8/1/2019 5.600 261,771 263,568
550,000 LOMBARD IL PUB FACS CORP 1/1/2030 5.500 580,631 513,156
1,750,000 LOMBARD IL PUB FACS CORP 1/1/2036 5.250 1,789,731 1,750,560
See accompanying notes to financial statements. (Continued)
36
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2007
Percent
Maturity Coupon Fair of
Par/Shares Security date rate Cost value (a) net assets
- ---------- ----------------------------------------------------- ---------- ------ ------------- ----------- -----------
500,000 LOMBARD IL PUB FACS CORP REV 1/1/2015 6.375 $ 500,000 500,000
300,000 LOMBARD ILL PUB FACS CORP 1/1/2025 5.500 319,304 288,006
250,000 LOMPOC CA HLTHCARE DIST 8/1/2034 5.000 254,201 255,173
500,000 LOS ANGELES CA HSG AUTH 6/1/2029 5.000 519,006 494,150
400,000 LOUDOUN CNTY VA DEV INDL AUTH 8/1/2028 5.000 400,000 400,128
1,750,000 LOUISIANA HSG FIN AGY 12/1/2038 5.700 1,859,743 1,911,508
250,000 LOUISIANA HSG FIN AGY SINGLE 10/1/2022 4.800 250,000 255,215
400,000 LOUISIANA HSG FIN AGY SINGLE F 6/1/2038 5.850 433,822 435,116
400,000 LOUISIANA LOC GOVT ENV FACS 11/1/2032 6.750 400,000 397,756
490,000 LOUISIANA LOC GOVT ENVIR FACS 6/20/2028 8.000 490,000 475,854
100,000 LOUISIANA PUB FACS AUTH REV 2/1/2028 5.000 102,493 102,025
400,000 LOUISIANA PUB FACS AUTH REV 12/1/2015 6.500 411,888 400,524
500,000 LOUISIANA PUB FACS AUTH REV 2/15/2036 4.761 500,000 461,450
750,000 LOUISVILLE JEFFERSON CNTY KY 10/1/2036 5.250 788,542 729,870
85,000 LUBBOCK TX HLTH FACS DEV CORP 1/20/2010 5.000 85,000 85,706
175,000 LUBBOCK TX HLTH FACS DEV CORP 3/20/2012 5.000 175,000 179,162
250,000 LUBBOCK TX HLTH FACS DEV CORP 7/1/2023 5.000 252,070 251,895
325,000 LUBBOCK TX HLTH FACS DEV CORP 7/1/2019 5.250 329,414 330,008
350,000 LUCAS CNTY OH HEALTH CARE FAC 8/15/2015 6.375 340,951 366,895
500,000 LYNN MA WTR & SWR COMN GEN REV 12/1/2032 5.000 505,663 511,800
689,672 LYONS CO REV 11/30/2016 4.750 697,378 674,210
250,000 MADEIRA CMNTY DEV DIST FL 11/1/2014 5.250 249,419 229,395
475,000 MADISON CNTY FL REV 7/1/2025 6.000 467,412 461,439
250,000 MADISON CNTY NY INDL DEV AGY 2/1/2017 4.500 245,777 240,335
250,000 MAGNOLIA CREEK CMNTY DEV DIST 5/1/2014 5.600 250,000 235,293
1,000,000 MALTA ILL TAX INCREMENT REV 12/30/2025 5.750 1,000,000 943,950
500,000 MANCHESTER N H HSG & REDEV (c) 1/1/2020 5.248 263,652 265,970
250,000 MANCHESTER NH HSG & REDEV 1/1/2015 6.750 265,656 259,358
650,000 MANHATTAN IL 3/1/2022 5.750 650,000 637,247
500,000 MANITOWOC WI ELEC REV 10/1/2034 5.250 514,499 512,305
500,000 MAPLE GROVE MN HEALTH CARE REV 9/1/2029 5.000 505,779 490,240
500,000 MARICOPA CNTY AZ HLTH FACS REV 7/1/2032 5.250 524,743 501,110
110,000 MARICOPA CNTY AZ HOSP REV 1/1/2008 7.625 110,000 110,000
250,000 MARICOPA CNTY AZ INDL DEV 1/1/2027 6.625 266,811 271,125
100,000 MARION CNTY IN CNVTN & RECTL 6/1/2027 5.000 102,014 101,222
500,000 MARQUIS CMNTY DEV AUTH VA REV 9/1/2013 5.100 500,000 497,030
215,000 MARYLAND ST ECONOMIC DEV CORP 12/1/2011 4.750 213,477 212,988
250,000 MARYLAND ST HEALTH & HIGHER 1/1/2017 5.000 250,235 246,973
750,000 MARYLAND ST HEALTH & HIGHER 1/1/2013 4.750 750,000 718,275
250,000 MARYLAND ST HEALTH & HIGHER ED 1/1/2027 4.625 250,000 242,918
500,000 MASHANTUCKET WSTRN PEQUOT 9/1/2036 5.500 509,479 466,910
500,000 MASSACHUSETTS ST 5/1/2037 4.631 500,000 448,920
1,500,000 MASSACHUSETTS ST COLLEGE BLDG 5/1/2039 5.375 1,570,101 1,545,015
750,000 MASSACHUSETTS ST HEALTH & EDL 7/1/2016 5.500 765,129 760,823
500,000 MASSACHUSETTS ST HEALTH AUTH 7/1/2018 5.000 518,221 517,800
350,000 MASSACHUSETTS ST HLTH EDL FACS 11/15/2009 5.125 352,748 355,786
450,000 MASSACHUSETTS ST HLTH EDL FACS 7/1/2028 5.000 464,102 453,411
500,000 MASSACHUSETTS ST INDL FIN AGY 2/15/2028 4.750 503,550 501,545
750,000 MASSACHUSETTS ST INDL FIN AGY 10/1/2023 5.000 770,238 765,435
145,000 MASSACHUSETTS ST TPK AUTH MET 1/1/2027 5.000 147,386 146,465
225,000 MASSACHUSETTS ST TPK AUTH MET 1/1/2029 5.250 231,899 227,509
500,000 MASSACHUSETTS ST TPK AUTH MET 1/1/2017 5.125 509,767 505,795
500,000 MASSACHUSETTSC ST DEV FIN AGY 10/1/2017 5.000 509,639 483,850
80,000 MATAGORDA CNTY TX NAV DIST 1 6/1/2026 5.250 81,761 82,330
265,000 MATAGORDA CNTY TX NAV DIST 1 6/1/2026 5.250 271,264 270,340
1,000,000 MATTESON IL TAX INCREMENT REV 12/1/2009 4.250 1,000,000 995,900
1,750,000 MC ALESTER OKLA PUB WKS AUTH (c) 2/1/2030 5.480 528,908 519,680
200,000 MEAD VLG NE TAX INCREMENT REV 7/1/2012 5.125 200,000 188,112
115,000 MECKLENBURG CNTY NC INDL FACS 12/1/2009 5.250 115,860 115,158
500,000 MESQUITE TX HEALTH FACS DEV 2/15/2015 5.000 502,944 501,310
855,000 MET GOVT NASHVILLE DAVIDSON TN (b) 6/20/2036 10.000 855,000 645,542
1,075,000 MET GOVT NASHVILLE DAVIDSON TN 12/20/2020 8.000 1,075,000 1,047,555
1,850,000 MET GOVT NASHVILLE DAVIDSON TN 12/20/2040 7.500 1,850,000 1,770,820
500,000 METRO GOVT NSHVILLE TN WTR SWR 1/1/2018 5.000 514,827 505,625
850,000 METRO TRANSN AUTH NY SVC CONTR 7/1/2030 5.000 881,800 873,588
300,000 METROPOLITAN PIER & EXPO IL 6/15/2012 5.250 306,978 300,432
500,000 MI PUB EDL FACS AUTH REV 9/1/2019 5.500 499,544 495,930
500,000 MIAMI BEACH FL HLTH FACS HOSP 11/15/2028 5.375 505,893 449,605
500,000 MIAMI CNTY OH HOSP FACS REV 5/15/2018 5.250 512,228 513,080
See accompanying notes to financial statements. (Continued)
37
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2007
Percent
Maturity Coupon Fair of
Par/Shares Security date rate Cost value (a) net assets
- ---------- ----------------------------------------------------- ---------- ------ ------------- ----------- -----------
500,000 MIAMI DADE CNTY FL EXPWY 7/1/2029 5.125 $ 521,407 520,010
250,000 MIAMI DADE CNTY FL SPL OBLIG 10/1/2037 5.000 257,051 252,335
250,000 MICH TOB STLMT FIN AUTH 6/1/2022 5.125 240,730 240,258
300,000 MICHIGAN PUB EDL FACS AUTH 9/1/2022 5.000 300,000 281,991
500,000 MICHIGAN PUB EDL FACS AUTH REV 10/1/2023 6.250 500,000 501,205
750,000 MICHIGAN PUB EDL FACS AUTH REV 9/1/2016 6.000 750,000 757,238
175,000 MICHIGAN ST HOSP FIN AUTH REV 6/1/2028 5.000 178,357 173,798
220,000 MICHIGAN ST HOSP FIN AUTH REV 11/15/2009 4.000 217,767 213,171
1,000,000 MICHIGAN ST STRATEGIC FD 9/1/2029 5.450 1,060,118 1,052,980
250,000 MICHIGAN ST UNIV REVS 2/15/2037 4.691 250,000 227,080
500,000 MIDCITIES MET DIST NO 2 CO 12/1/2030 5.125 500,733 484,580
500,000 MILLSBORO DE SPL OBLG 7/1/2036 5.450 500,000 463,630
750,000 MILWAUKEE WI REDEV AUTH REV 8/1/2015 5.125 749,934 751,133
645,000 MINNESOTA ST HIGHER ED FACS 10/1/2016 4.493 650,725 656,868
1,000,000 MISSISSIPPI DEV BK SPL 10/1/2013 5.000 1,027,573 1,037,530
250,000 MISSOURI ST DEV FIN BRD FACS 4/1/2025 5.125 253,381 251,535
500,000 MISSOURI ST DEV FIN BRD FACS 4/1/2028 4.750 484,156 472,470
500,000 MISSOURI ST HLTH & EDL FAC AUT 2/1/2027 4.875 506,402 466,975
500,000 MISSOURI ST HLTH & EDL FAC AUT 2/1/2018 4.875 513,097 502,530
980,000 MISSOURI ST HLTH & EDL FAC AUT 2/1/2022 5.125 1,014,028 982,528
375,000 MISSOURI ST HLTH & EDL FAC REV 5/15/2025 5.125 390,463 382,024
500,000 MONROE CNTY GA POLLUTN CTL REV 7/1/2036 4.900 509,643 502,505
355,000 MONROE MCKEEN PLAZA HSG DEV LA 2/1/2012 6.800 356,776 355,550
500,000 MONROEVILLE AL WTRWKS BRD 1/1/2020 5.125 513,974 505,710
250,000 MONTGOMERY AL EDL BLDG AUTH 10/1/2032 5.250 262,129 244,225
250,000 MONTGOMERY AL MED CLNIC BRD 3/1/2031 5.250 256,656 232,728
375,000 MONTGOMERY CNTY PA INDL DEV RE 2/1/2028 6.125 369,672 370,076
650,000 MONTGOMERY CNTY PA INDL DEV RE 2/1/2014 5.375 645,841 630,864
200,000 MONTGOMERY CNTY TX MUN UTIL 3/1/2017 4.900 200,817 200,292
250,000 MONTGOMERY IL SPL ASSMT 3/1/2030 4.700 250,236 226,983
200,000 MOUNT CARBON MET DIST CO REV (b)(e) 6/1/2043 1.000 0 0
800,000 MOUNT CARBON MET DIST CO REV (e) 6/1/2043 7.000 800,000 800,000
300,000 MOUNT DORA FL HEALTH FACS AUTH 8/15/2008 4.250 299,088 296,688
130,000 MOUNTAIN REGL WTR SPL SVC DIST 12/1/2008 6.250 129,747 131,193
500,000 MULESHOE TX INDPT SCH DIST 2/15/2031 5.000 504,864 500,450
500,000 MURRAY CITY UT HOSP REV 5/15/2022 5.000 503,194 500,195
400,000 NASSAU CNTY N Y INDL DEV AGY 1/1/2018 5.875 396,269 397,168
140,000 NEW HAMPSHIRE HEALTH & ED 7/1/2011 5.000 140,755 141,904
480,000 NEW HAMPSHIRE HEALTH & ED 7/1/2016 5.000 478,007 478,522
300,000 NEW JERSEY ECONOMIC DEV AUTH 1/1/2015 5.000 296,508 283,383
250,000 NEW JERSEY HEALTH CARE FACS 2/1/2021 5.000 258,765 257,673
495,000 NEW JERSEY HEALTH CARE FACS FI 11/15/2033 3.522 495,000 440,426
45,000 NEW MEXICO MTG FIN AUTH 1/1/2026 6.950 47,379 45,746
250,000 NEW MEXICO ST HOSP EQUIP LN 7/1/2025 5.250 260,508 250,615
250,000 NEW MEXICO ST HOSP EQUIP LN 8/15/2017 5.000 249,045 231,390
230,000 NEW ORLEANS LA SEW SVC REV 6/1/2010 5.200 232,621 232,576
500,000 NEW RIVER CNMTY DEV DIST FL CP 5/1/2013 5.000 498,403 461,410
215,000 NEW YORK CNTYS TOB TR IV 6/1/2021 4.250 212,820 202,844
35,000 NEW YORK N Y PREREFUNDED SER H 3/15/2029 5.000 36,007 36,203
360,000 NEW YORK N Y UNREFUNDED SER H 3/15/2029 5.000 369,458 365,965
350,000 NEW YORK ST DORM AUTH REVS 7/1/2019 6.875 378,271 368,344
750,000 NEW YORK ST MED CARE FACS FIN 11/1/2020 5.375 767,810 753,300
500,000 NORMAN OKLA REGL HOSP AUTH REV 9/1/2024 5.500 509,800 507,010
250,000 NORTH CAROLINA 1/1/2032 5.250 248,632 214,168
625,000 NORTH CAROLINA MED CARE 7/1/2027 5.000 625,168 572,869
250,000 NORTH CAROLINA MED CARE COMMN 2/15/2019 5.500 257,017 250,250
500,000 NORTH CAROLINA MED CARE COMMN 10/1/2034 5.800 542,704 506,325
150,000 NORTH CAROLINA MED CARE HLTH 10/1/2028 5.000 153,533 152,690
500,000 NORTH CAROLINA MED CARE HLTH 10/1/2020 5.500 515,167 514,080
1,300,000 NORTH CAROLINA MED CARE HLTH 10/1/2035 4.750 1,300,000 1,272,414
420,000 NORTH CAROLINA MUN PWR AGY 1/1/2017 5.125 435,181 424,868
415,000 NORTH CENT TX HLTH FAC DEV 11/15/2010 7.000 432,915 443,569
1,000,000 NORTH CENT TX HLTH FAC DEV 5/15/2017 5.000 1,016,688 1,020,550
500,000 NORTH HARRIS CNTY TX REGL WTR 12/15/2032 5.000 516,474 515,530
750,000 NORTH OAKS MN SR HSG REV 10/1/2022 5.750 738,999 731,018
350,000 NORTH RANGE MET DIST NO 1 CO 12/15/2024 5.000 363,544 305,473
500,000 NORTHEAST NEB SOLID WASTE COAL 5/15/2023 4.900 502,191 500,495
500,000 NORTHERN CA GAS AUTH NO 1 7/1/2027 4.781 500,000 452,125
750,000 NORTHRN CA PWR AGY PUB PWR REV 7/1/2032 5.200 765,230 762,735
See accompanying notes to financial statements. (Continued)
38
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2007
Percent
Maturity Coupon Fair of
Par/Shares Security date rate Cost value (a) net assets
- ---------- ----------------------------------------------------- ---------- ------ ------------- ----------- -----------
500,000 NORTHERN MARIANA ISLANDS 10/1/2022 5.000 $ 504,603 473,710
250,000 OAKLAND CA UNI SCH DIST 8/1/2024 5.000 259,813 262,450
100,000 OAKRIDGE COMMUNITY DEVELOPMENT 5/1/2018 5.250 102,482 102,613
250,000 OKANOGAN CNTY WASH PUB HOSP 12/1/2023 5.625 264,500 266,010
505,000 OKLAHOMA CNTY OK FIN AUTH REV 11/15/2040 5.000 505,000 491,693
500,000 OKLAHOMA DEV FIN AUTH HOSP 12/1/2023 5.125 496,427 505,165
35,000 OKLAHOMA DEV FIN AUTH REV 2/15/2029 6.000 36,715 36,092
250,000 OKLAHOMA DEV FIN AUTH REV 2/15/2032 5.000 255,120 250,258
545,000 ORANGE CNTY FL HLTH FACS AUTH 7/1/2009 4.625 545,000 537,228
620,000 OREGON ST HEALTH HSG EDL AUTH 11/15/2026 8.000 646,677 620,558
30,000 OREGON ST HSG & CMNTY SVCS DEP 7/1/2022 5.700 30,350 30,285
495,000 ORLEANS PARISH LA SCH BRD (c) 2/1/2015 5.526 331,845 342,347
250,000 PALM BEACH CNTY FL HLTH FACS 11/15/2017 5.250 250,000 252,015
450,000 PALM BEACH CNTY FL HLTH FACS 10/1/2011 5.500 453,811 456,197
500,000 PALM BEACH CNTY FL HLTH FACS 11/15/2022 5.375 488,729 487,970
675,000 PALM BEACH FL HEALTH FACS 11/15/2029 5.125 684,068 621,635
225,000 PALO ALTO CNTY IA HOSP REV 8/1/2024 5.250 228,266 200,788
355,000 PANTHER TRACE II FL CMNTY DEV 11/1/2010 5.000 356,337 354,688
400,000 PAOLI IN BLDG CORP 1/15/2032 5.000 405,781 402,128
680,000 PARKLANDS LEE CMNTY DEV DIST 5/1/2011 5.125 679,456 650,651
250,000 PENNSYLVANIA INTRGVRNMNTL COOP 6/15/2021 5.000 257,357 255,505
295,000 PENNSYLVANIA ST HIGHER EDL 1/15/2031 6.000 308,961 315,559
500,000 PENNSYLVANIA ST HIGHER EDL 3/15/2030 5.750 516,087 505,100
600,000 PENNSYLVANIA ST HIGHER EDL 1/15/2022 6.000 620,889 643,962
50,000 PENNSYLVANIA ST HIGHER EDL FAC 11/15/2021 5.875 50,989 50,476
75,000 PENNSYLVANIA ST HIGHER EDL FAC 11/15/2016 5.875 79,767 75,836
235,000 PENNSYLVANIA ST HIGHER EDL FAC 11/15/2021 5.875 254,306 237,237
325,000 PENNSYLVANIA ST HIGHER EDL FAC 11/15/2016 5.875 335,642 328,624
500,000 PENNSYLVANIA ST HIGHER EDL FAC 12/1/2018 5.000 515,059 518,320
500,000 PENNSYLVANIA ST HIGHER EDL FAC 7/1/2039 4.711 500,000 453,185
250,000 PHILADELPHIA PA HOSPS & HIGHER 11/15/2023 6.625 254,146 250,468
250,000 PHOENIX AZ STR & HWY USER REV 7/1/2011 6.250 255,552 250,573
425,000 PIMA CNTY AZ INDL 2/1/2015 6.625 425,000 427,350
200,000 PIMA CNTY AZ INDL DEV 12/15/2016 5.250 197,879 201,792
150,000 PIMA CNTY AZ INDL DEV AUTH 7/1/2023 5.700 154,571 150,606
215,000 PIMA CNTY AZ INDL DEV AUTH 8/1/2012 6.250 215,000 217,412
250,000 PIMA CNTY AZ INDL DEV AUTH 6/1/2022 5.000 254,680 235,873
250,000 PIMA CNTY AZ INDL DEV AUTH 7/1/2015 5.125 248,829 249,463
400,000 PIMA CNTY AZ INDL DEV AUTH 12/1/2017 5.350 400,000 389,928
465,000 PIMA CNTY AZ INDL DEV AUTH 6/1/2016 6.000 465,000 473,421
490,000 PIMA CNTY AZ INDL DEV AUTH 7/1/2014 4.650 488,630 477,799
150,000 PIMA CNTY AZ INDL DEV AUTH ED 7/1/2012 5.000 149,694 151,172
500,000 PIMA CNTY AZ INDL DEV AUTH ED 7/1/2022 5.375 506,176 490,630
850,000 PIMA CNTY AZ INDL DEV AUTH ED 2/1/2015 7.250 849,870 850,425
500,000 PINAL CNTY ARIZ CTFS PARTN 12/1/2026 5.000 504,900 503,175
500,000 PINAL CNTY AZ INDL DEV AUTH 10/1/2020 5.250 526,085 488,385
446,000 PINGREE GROVE VILLAGE IL 3/1/2015 5.250 442,539 445,309
225,000 PITT CNTY NC REV 12/1/2010 5.375 233,454 237,623
750,000 PLEASANTS CNTY WV POLL CTL 5/1/2015 6.150 790,762 775,883
200,000 PORT AUTHORITY NY & NJ 1/15/2032 5.375 202,381 201,204
2,000,000 PORT EVERGLADES AUTH FL IMPT 9/1/2016 5.000 2,014,112 2,006,900
250,000 PORTLAND ME HSG DEV CORP 8/1/2021 5.700 250,000 253,948
650,000 PORTLAND ME HSG DEV CORP 8/1/2015 4.875 650,000 637,072
500,000 POTTER CNTY PA HOSP AUTH REV 8/1/2024 6.050 519,755 504,490
750,000 POTTER CNTY PA HOSP AUTH REV 8/1/2016 5.950 755,556 755,168
105,000 PRIVATE COLLEGES & UNIVS AUTH 10/1/2029 5.375 105,208 101,465
250,000 PRIVATE COLLEGES&UNIVS AUTH GA 10/1/2014 5.250 257,831 254,185
250,000 PROVO UT CHARTER SCH REV 6/15/2037 5.500 250,000 225,350
450,000 PUERTO RICO COMWLTH HWY 7/1/2045 4.591 450,000 396,059
500,000 PUERTO RICO ELEC 7/1/2025 4.741 500,000 451,860
500,000 PUERTO RICO SALES TAX FING 8/1/2057 4.061 500,000 458,505
750,000 QUAIL CREEK CMNTY FACS DIST 7/15/2016 5.150 750,000 739,860
300,000 QUINAULT INDIAN NATION WA 12/1/2015 5.800 307,074 296,523
400,000 RENO NV HOSP REV 6/1/2032 5.250 415,322 394,296
750,000 RENO SPARKS INDIAN COLONY NV 6/1/2021 5.000 768,039 749,243
250,000 RHODE ISLAND ST HLTH & ED BLDG 5/15/2026 5.250 256,004 254,590
500,000 RICHARDSON TX HOSP AUTH REV 12/1/2028 5.625 516,081 493,980
350,000 RIVERSIDE MO INDL DEV AUTH 5/1/2027 4.500 347,857 310,772
See accompanying notes to financial statements. (Continued)
39
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2007
Percent
Maturity Coupon Fair of
Par/Shares Security date rate Cost value (a) net assets
- ---------- ----------------------------------------------------- ---------- ------ ------------- ----------- -----------
500,000 RIVERSIDE MO INDL DEV AUTH 5/1/2020 5.000 $ 503,175 489,830
250,000 RIVERWOOD ESTATES CMNTY DEV 5/1/2013 5.000 250,000 231,973
1,000,000 ROCKPORT IN POLLUTION CTL REV 6/1/2025 4.625 1,000,625 978,890
500,000 SACRAMENTO CNTY CA CTFS PARTN 10/1/2027 4.750 500,466 500,420
250,000 SACRAMENTO CNTY CA SANTN DIST 12/1/2035 4.066 250,000 226,970
350,000 SACRAMENTO CNTY CA WTR FINGAU 6/1/2039 4.631 350,000 310,076
250,000 SAGINAW MI HOSP FIN AUTH REV 7/1/2030 6.500 266,884 265,428
1,750,000 SAN BERNARDINO CNTY CA CTFS 8/1/2028 5.000 1,799,600 1,765,173
145,000 SAN DIEGO CA PUB FACS FING 5/15/2025 5.000 145,425 145,155
200,000 SAN DIEGO CA PUB FACS FING 5/15/2025 5.000 202,261 200,214
600,000 SAN JOAQUIN HILLS CA TRNS TOLL 1/15/2030 5.250 610,193 606,696
250,000 SANTA CLARA CA REDEV TAX ALLOC 6/1/2015 5.000 252,280 252,045
500,000 SARASOTA CNTY FL HEALTH FACS 1/1/2027 5.500 509,226 463,345
250,000 SARASOTA NATL CMNTY DEV DIS FL 5/1/2039 5.300 248,144 196,163
410,000 SAYRE PA HLTH CARE FACS AUTH (b) 12/1/2031 5.875 432,058 423,555
1,000,000 SCAGO EDL 12/1/2021 5.000 1,051,339 999,960
1,000,000 SCAGO EDL FACS CORP 12/1/2026 5.000 1,051,339 1,041,200
750,000 SCRANTON PENN PKG 6/1/2027 5.250 761,070 753,285
200,000 SEMINOLE TRIBE FL SPL OBLIG 10/1/2022 5.750 207,551 200,512
500,000 SEMINOLE TRIBE FL SPL OBLIG RE 10/1/2024 5.500 506,772 481,165
250,000 SENECA NATION INDIANS CAP 12/1/2023 5.000 248,630 223,283
150,000 SHELBY CNTY TN HLTH EDL & HSG (b) 1/1/2019 5.350 134,966 45,432
500,000 SHELBY CNTY TN HLTH EDL & HSG 9/1/2026 5.625 496,265 476,645
500,000 SHELBY CNTY TN HLTH EDL & HSG 9/1/2011 4.900 500,000 491,000
625,000 SHELBY CNTY TN HLTH EDL & HSG (b) 1/1/2029 5.550 556,863 185,281
750,000 SHELBY CNTY TN HLTH EDL & HSG 9/1/2016 5.250 744,824 733,365
250,000 SKAGIT CNTY WA 12/1/2008 4.650 250,770 251,633
500,000 SKAGIT CNTY WASH PUB HOSP 12/1/2025 5.625 517,822 500,725
1,000,000 SKOWHEGAN ME POLLUTN 11/1/2013 5.900 1,000,000 1,002,250
250,000 SOUTH CAROLINA JOBS ECON DEV 11/15/2030 5.625 253,996 254,343
500,000 SOUTH CAROLINA JOBS ECON DEV 4/1/2024 5.000 513,779 482,960
750,000 SOUTH CAROLINA JOBS ECON DEV 4/1/2027 5.000 750,000 750,000
500,000 SOUTH CAROLINA JOBS ECONOMIC 11/15/2027 6.000 504,598 469,105
695,000 SOUTH CAROLINA JOBS ECONOMIC 11/1/2010 4.650 695,000 677,604
750,000 SOUTH CAROLINA JOBS ECONOMIC 5/1/2011 5.000 750,000 733,763
750,000 SOUTH CAROLINA JOBS ECONOMIC 11/15/2042 5.150 750,000 733,238
1,000,000 SOUTH COAST CONSERVANCY DIST 1/1/2028 5.250 993,802 1,055,760
600,000 SOUTH DAKOTA ST HEALTH 7/1/2030 3.770 600,000 600,000
250,000 SOUTH DAKOTA ST HEALTH & EDL 11/1/2034 5.250 259,743 253,345
375,000 SOUTH DAKTA ST HEATH & EDL FAC 7/1/2024 3.770 375,000 375,000
170,000 SOUTH LAKE CNTY HOSP DIST FL 10/1/2022 6.000 176,531 174,993
85,000 SOUTH LAKE CNTY HOSP DIST FLA 10/1/2008 4.250 84,969 84,912
640,000 SOUTH LAKE CNTY HOSP FL 10/1/2013 5.500 640,022 671,034
300,000 SOUTHERN MN MUN PWR AGY SUPPLY 1/1/2013 1.850 300,000 294,828
250,000 SOUTHWESTERN IL DEV AUTH REV 8/15/2015 5.375 258,423 254,773
250,000 SOUTHWESTERN IL DEV AUTH REV 11/1/2026 5.625 248,185 239,213
1,500,000 SOUTHWESTERN IL DEV AUTH REV 8/15/2029 5.625 1,540,959 1,502,325
165,000 SOUTHWESTERN ILL DEV AUTH REV 4/1/2010 6.000 163,485 161,882
1,025,000 ST JOHN BAPTIST PARISH LA REV 6/1/2037 5.125 1,025,000 985,097
250,000 ST JOHNS CNTY FL INDL DEV 10/1/2017 5.000 250,000 231,550
400,000 ST JOSEPH CNTY IND ECONOMIC 5/15/2014 5.750 409,595 394,944
500,000 ST JOSEPH MO INDL DEV AUTH TAX 11/1/2023 5.375 496,011 467,090
1,000,000 ST JOSEPH MO INDL DEV AUTH TAX 11/1/2019 5.100 986,840 942,950
500,000 ST JOSHEP CNTY IN HOSP AUTH 2/15/2028 5.250 511,885 465,535
800,000 ST LOUIS CNTY MO HSG AUTH (b) 11/1/2014 8.500 800,000 382,000
250,000 ST LOUIS CNTY MO INDL DEV 9/1/2021 5.375 255,366 241,073
250,000 ST LOUIS CNTY MO INDL DEV AUTH 11/15/2022 5.000 253,927 222,898
1,000,000 ST LOUIS CNTY MO INDL DEV AUTH 12/1/2027 5.370 1,000,000 993,840
480,000 ST LOUIS MO INDL DEV AUTH TAX 5/1/2026 5.125 477,106 443,683
525,000 ST PAUL MN HSG & REDEV HOSP 11/15/2014 5.250 537,111 528,428
249,676 ST TAMMANY PARISH LA FIN AUTH 12/1/2039 5.250 255,818 259,915
215,000 STERLING HILL CMNTY DEV DIST 11/1/2010 5.500 214,444 214,521
300,000 STERLING HILL CMNTY DEV DIST 5/1/2011 5.100 300,000 286,230
500,000 STONEYBROOK SOUTH CMNTY DEV FL 11/1/2015 5.450 498,214 456,495
500,000 SULLIVAN CNTY TN HEALTH EDL 9/1/2036 5.250 516,736 473,420
135,000 SUMMIT ACADEMY NORTH MI PUB 7/1/2009 6.250 135,972 140,651
445,000 SUMMIT ACADEMY NORTH MI PUB 11/1/2011 4.750 445,138 437,408
83,000 SUNDANCE CMNTY FACS DIST AZ 7/1/2008 5.000 83,000 83,055
See accompanying notes to financial statements. (Continued)
40
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2007
Percent
Maturity Coupon Fair of
Par/Shares Security date rate Cost value (a) net assets
- ---------- ----------------------------------------------------- ---------- ------ ------------- ----------- -----------
500,000 TANGIPAH0A PARISH LA HOSP SVC 2/1/2015 5.375 $ 522,852 527,380
750,000 TARRANT CNTY TX CLUTURAL ED 11/15/2036 6.000 773,120 726,465
250,000 TARRANT CNTY TX CULTURAL ED 2/15/2013 5.000 249,660 242,465
1,000,000 TARRANT CNTY TX CULTURAL ED 11/15/2026 6.000 1,037,771 983,850
250,000 TEXAS MUN GAS ACQUISITION 12/15/2026 4.794 250,000 225,563
250,000 TEXAS MUN GAS CORP 12/15/2026 4.761 250,000 220,078
90,000 TEXAS ST AFFORDABLE HSG CORP 10/1/2008 4.100 90,000 90,086
500,000 TEXAS ST PUB FIN AUTH CHARTER 9/1/2018 5.500 500,000 490,285
800,000 TEXAS STUDENT HSG AUTH REV (b) 1/1/2033 11.000 800,000 19,600
1,500,000 TISONS LANDING CMNTY DEV DIST 11/1/2011 5.000 1,499,193 1,412,250
475,000 TOB SECURITIZATION AUTH NORTH 6/1/2023 4.750 462,338 452,262
300,000 TOBACCO SETTLEMENT FING CO NJ 6/1/2015 5.000 309,917 303,414
750,000 TOBACCO SETTLEMENT FING CORP 6/1/2011 5.000 751,281 750,998
1,025,000 TOBACCO SETTLEMENT REV MGMT 5/15/2022 6.000 1,058,994 1,045,838
425,000 TODD CREEK FARMS MET DIST NO 1 12/1/2009 4.750 423,076 417,410
250,000 TOLEDO LUCAS CNTY OH PORT AUTH 12/1/2035 5.375 257,955 239,880
750,000 TOLOMATO CMNTY DEV DIST FL 5/1/2017 6.375 750,000 740,858
2,000,000 TRAVIS CNTY TX HEALTH FACS DEV 11/15/2035 4.750 2,000,000 1,958,440
840,000 TRAVIS CNTY TX HSG FIN CORP (b) 6/1/2035 9.250 840,000 319,040
500,000 TWIN VALLEY PUB PWR RV 9/15/2022 5.250 510,201 500,685
350,000 TYLER TX HEALTH FACS DEV CORP 11/1/2037 5.375 347,555 322,256
855,000 TYLER TX HEALTH FACS DEV CORP 11/1/2027 5.375 896,486 886,481
1,000,000 TYLER TX HEALTH FACS DEV CORP 7/1/2009 6.600 1,006,200 1,015,980
500,000 ULSTER CNTY N Y INDL 9/15/2013 5.100 496,315 488,225
500,000 ULSTER CNTY N Y INDL 9/15/2016 5.250 493,111 481,200
200,000 UNIVERSITY CITY MO INDL DEV AU 12/20/2030 6.000 211,166 200,164
671,000 UTAH ASSOCIATED MUNI POWER SYS 5/1/2022 4.750 671,000 626,868
320,000 UTAH CNTY UT HOSP REV 8/15/2026 5.250 324,618 323,750
250,000 UTAH ST CHARTER SCH FIN AUTH 6/15/2017 5.125 250,000 247,870
750,000 VALLEY AL SPL CARE FACS FING 11/1/2011 5.450 764,044 761,363
1,220,000 VERANO CTR CMNTY DEV DIST FL 11/1/2012 5.000 1,220,000 1,094,682
300,000 VERRADO CMNTY FACS DIST NO 1 7/15/2013 6.000 300,000 314,424
300,000 VIGO CNTY IN HOSP AUTH REV 9/1/2027 5.500 296,779 278,544
2,000,000 VIRGINIA ST HSG DEV AUTH 7/1/2036 5.375 2,094,507 2,031,180
250,000 VISTANCIA CMNTY FACS DIST AZ 7/15/2008 4.150 250,000 249,950
350,000 WASHINGTON CNTY IA HOSP REV 7/1/2017 5.250 349,730 358,554
575,000 WASHINGTON CNTY OK MED AUTH 11/1/2010 5.500 584,572 578,887
145,000 WASHINGTON CNTY PA AUTH REV 12/1/2029 6.150 153,864 145,251
500,000 WASHINGTON ST 7/1/2022 5.000 515,700 519,655
650,000 WASHINGTON ST HSG FIN COMMN 1/1/2013 5.100 650,000 644,215
1,150,000 WASHINGTON ST HSG FIN COMMN 1/1/2017 5.250 1,145,836 1,128,610
500,000 WATERS EDGE CMNTY DEV DIST 11/1/2012 5.000 500,213 466,420
500,000 WATERSET NORTH CMNTY DEV DIST 11/1/2015 6.550 498,457 490,220
605,000 WATSON RD CMNTY FACS DIST AZ 7/1/2008 4.600 605,286 603,639
750,000 WEATHERFORD HOSP AUTH OK REV 5/1/2016 6.000 767,520 747,983
125,000 WELD CNTY CO CTFS PARTN 12/15/2019 5.125 127,719 126,131
250,000 WEST VLGS IMPT DIST FLA REV 5/1/2037 5.500 250,000 207,400
1,000,000 WESTERN GENERATION AGY OR 1/1/2021 5.000 1,011,162 930,690
200,000 WESTPARK CMNTY FACS DIST AZ 7/15/2016 4.900 200,000 193,504
500,000 WHITEHOUSE TX INDPT SCH DIST (c) 2/15/2025 4.650 227,643 207,880
60,000 WHITMORE LAKE MI PUB SCH DIST 5/1/2028 5.000 62,157 61,680
500,000 WI ST HEALTH EDL FACS 6/1/2028 5.700 520,189 476,180
145,000 WICHITA KS HOSP REV 11/15/2024 6.250 151,994 151,405
255,000 WILL CNTY IL SPL ED JT 1/1/2021 5.500 265,677 269,344
500,000 WINKLER COUNTY TX 2/15/2031 5.250 516,599 493,380
460,000 WISCONSIN HEALTH & EDL FACS 8/15/2016 4.600 458,685 457,682
1,000,000 WISCONSIN HEALTH & EDL FACS 12/1/2034 4.750 1,000,000 993,560
250,000 WISCONSIN ST HEALTH & EDL 11/15/2032 6.000 268,991 247,590
225,000 WISCONSIN ST HEALTH & EDL FACS 11/15/2023 6.000 240,459 228,015
250,000 WISCONSIN ST HEALTH & EDL FACS 3/1/2015 4.650 250,000 245,433
250,000 WISCONSIN ST HEALTH & EDL FACS 2/15/2034 5.375 255,744 240,160
250,000 WISCONSIN ST HEALTH & EDL FACS 10/1/2013 4.500 248,742 249,608
350,000 WISCONSIN ST HEALTH & EDL FACS 7/1/2021 6.000 359,866 363,384
350,000 WISCONSIN ST HEALTH & EDL FACS 5/15/2029 5.125 361,150 328,787
400,000 WISCONSIN ST HEALTH & EDL FACS 9/1/2015 5.000 400,000 376,140
450,000 WISCONSIN ST HEALTH & EDL FACS 7/1/2017 6.000 463,122 470,822
500,000 WISCONSIN ST HEALTH & EDL FACS 7/1/2026 5.000 505,528 471,480
1,050,000 WOODHILL PUB FAC CORP TEX 12/1/2015 7.250 1,037,508 1,020,768
See accompanying notes to financial statements. (Continued)
41
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2007
Percent
Maturity Coupon Fair of
Par/Shares Security date rate Cost value (a) net assets
- ---------- ----------------------------------------------------- ---------- ------ ------------- ----------- ----------
250,000 YORK CNTY PA INDL DEV AUTH REV 10/1/2019 6.450 $ 250,000 250,640
250,000 YUBA CTY CL REDEV AGY TAX ALLO 9/1/2027 5.125 255,236 249,123
400,000 ZEPHYR RIDGE CMNTY DEV DIST FL 5/1/2013 5.250 400,816 373,372
------------- -----------
325,055,024 313,940,202 93.05%
Cash equivalents:
6,085,332 SSGA TAX FREE MONEY MARKET FUND, current rate 3.31% 6,085,332 6,085,332 1.80%
------------- ----------- ----------
Grand total (d) $ 351,982,642 340,023,399 100.78%
============= =========== ==========
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. For long-term debt
securities, item identified is in default as to payment of interest
and/or principal.
(c) For zero coupon bonds, the interest rate disclosed represents the
annualized effective yield on the date of acquisition.
(d) At December 31, 2007, the cost for federal income tax purposes was
$351,982,642. The aggregate gross unrealized appreciation and
depreciation of investments in securities based on this cost were as
follows:
Gross unrealized appreciation $ 1,141,528
Gross unrealized depreciation (13,100,770)
-------------
Net unrealized depreciation $ (11,959,243)
=============
(e) This security is being fair-valued according to procedures adopted
by the Board of Trustees.
Distribution of investments representing geographic diversification, as a
percentage of total investments at value, is as follows:
Geographical diversification Percent
------------------------------------------- -------
Illinois 9.29%
Texas 9.32
Florida 8.76
California 5.63
Pennsylvania 3.85
Louisana 3.78
Arizona 3.45
South Carolina 3.28
Montana 3.25
Indiana 2.78
Michigan 2.53
Other 44.08
-------
100.00%
=======
See accompanying notes to financial statements. (Continued)
42
CLEARWATER INVESTMENT TRUST
Schedule of Investments - Clearwater Tax-Exempt Bond Fund
December 31, 2007
- --------------------------------------------------------------------------------
Clearwater Tax-Exempt Bond Fund Portfolio Diversification
(as a percentage of net assets)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Cash Equivalents and other assets/liabilities 2%
Insured bonds 16%
General Obligation Bonds 2%
Multi-Family Housing Bonds 18%
Education Bonds 9%
Insured General Obligation Bonds 3%
Hospital Bonds 18%
Public Utility Bonds 1%
Industrial Revenue Bonds 6%
Public Housing Bonds 2%
Escrow Bonds 2%
Other 21%
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
43
CLEARWATER INVESTMENT TRUST
FORM N-CSR
Item 2 Code of Ethics (annual report only)
a) As of the end of the period covered by this report, the Trustees of
the Clearwater Investment Trust have adopted a code of ethics that
applies to the Trust's principal executive officer, principal
financial officer, principal accounting officer or controller, or
persons performing similar functions, regardless of whether these
individuals are employed by the trust or a third party.
b) For purposes of this Item, the term "code of ethics" means written
standards that are reasonably designed to deter wrongdoing and to
promote:
1. Honest and ethical conduct, including the ethical
handling of actual or apparent conflicts of interest
between personal and professional relationships;
2. Full, fair, accurate, timely, and understandable
disclosure in reports and documents that a registrant
files with, or submits to, the Commission and in other
public communications made by the registrant;
3. Compliance with applicable governmental laws, rules, and
regulations;
4. The prompt internal reporting of violations of the code
to an appropriate person or persons identified in the
code' and
5. Accountability for adherence to the code.
c) During the period covered by this report no amendment has been made
to the Trust's code of ethics referred to in (a) above.
d) During the period covered by this report, the Trustees have granted
no waivers, including implicit waivers, from any provisions of the
Trust's code of ethics referred to in (a) above.
e) Not applicable.
f) See Item 12(a).
Item 3 Audit Committee Financial Expert (annual report only)
The Board of Trustees of the Clearwater Investment Trust consists of five
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 Trustees have
determined that the Trust's investor constituency is highly unlikely to include
anyone meeting that definition. Furthermore, the 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 (annual report only) (accrual
basis)
a) Audit Fees 2007 = $75,650 2006 = $72,125
b) Audit-Related Fees 2007 = None 2006 = None
c) Tax Fees 2007 = None 2006 = None
d) All Other Fees 2007 = None 2006 = None
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 2007 = $4,325 2006 = $4,125
h) The Trust's Principal Accountant provides the examination required
by Rule 206(4)-2(a)(3)(ii) regarding the custody and safekeeping of
client funds and securities. These fees were pre-approved by the
Trust's audit committee.
Item 5 Audit Committee of Listed Registrants (annual report only)
Not applicable.
Item 6 Schedule of Investments (annual and semi-annual report)
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,
Treasurer and Principal Accounting Officer 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.
Registrant: Clearwater Investment Trust
/s/George H. Weyerhaeuser, Jr.
------------------------------
George H. Weyerhaeuser, Jr.
Chairman
Date: March 7, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1040, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
/s/George H. Weyerhaeuser, Jr.
------------------------------
George H. Weyerhaeuser, Jr.
Chairman
Date: March 7, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1040, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
/s/George H. Weyerhaeuser, Jr.
------------------------------
George H. Weyerhaeuser, Jr.
Treasurer
Date: March 7, 2008