Fund will continue, but will convert to a traditional money market fund
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NEW YORK – October 11, 2013 – CBIS and the CUIT Trustees have made the difficult decision to discontinue the checking and debit card features of the CUIT Flex Cash Fund, effective December 31, 2013 for debit cards and January 15, 2014 for checking.
After January 15, 2014, participants in the Fund will be unable to write any checks from Flex Cash accounts and all outstanding checks must have cleared or will be returned. Unused checks should be shredded to protect against fraud. Debit cards will be deactivated as of December 31, 2013.
The CUIT Flex Cash Fund itself will continue, but it will function solely as a cash management money market fund, not as a banking solution. All accounts will remain open and liquid; the only change is the elimination of checking and debit features. In order to provide participants with an alternate solution, CBIS has identified one potential option at Federated Investors, a well-known money market fund provider based in Pittsburgh, PA. The Federated fund provides many features similar to Flex Cash checking accounts. Of course, participants are also welcome to find their own checking account provider if they prefer.
Among the key features of the Federated fund are:
- No monthly account fee
- No fees for domestic wires
- Free checks
CBIS came to this decision after months of discussion and examination. One of the primary drivers behind CBIS’ founding more than 30 years ago was to provide Catholic institutions with a checking solution specifically tailored to their needs. The CUIT Flex Cash Fund (then called the RCT Money Market Fund) was one of CBIS’ first products and has served CBIS participants well as a checking solution designed specifically for Catholic institutions.
Since that time, CBIS’ focus has increasingly moved toward the long-term investment needs of our participants. Simultaneously, technology has enabled traditional banks and other high-volume investment firms to offer checking solutions that more effectively serve Catholic institutions. In order to focus on providing high-quality service to participants with respect to their long-term investment needs, CBIS did not wish to make the investment that would be necessary to keep up with the banking services and account access these high-volume competitors can provide.
More information about the Federated fund, the Federated Automated Government Cash Reserves Money Market Fund (Ticker: AGSXX), can be found on www.federatedinvestors.com.
For more information about the transition process, please visit our FAQ.