Objective

Preserve capital, provide current income and maintain liquidity.

Strategy

Liquidity will be maintained by investing in highly rated securities with short maturities and by constraining the average portfolio maturity to less than 90 days; credit and default risk are further minimized by diversifying among issuers; the Fund attempts to maintain a stable net asset value of $1.00 per unit.

Fund Facts
Asset Manager
  • Wellington Management Company(Since 8/1/01)
Benchmark Bloomberg Barclays U.S. Short Treasury Bills (1-3M) Index
Fund Inception Date January 1, 1985 (renamed from RCT Money Market Fund on June 30, 2006)
Mimimum Investment No minimum investment required
Expense Ratio 0.31%

Additional Facts

Effective April 1, 2017, the benchmark for the CUIT Money Market Fund was changed to the Bloomberg Barclays U.S. Short Treasury Bills (1-3 Month) Index. For periods prior to April 1, 2017, the applicable benchmark was the Merrill Lynch 91-Day Treasury Bill Index.

Annual Average Total Returns
(%) as of 06/30/2020

Trailing 3 Months 1 Year 3 Years 5 Years 10 Years
CUIT Money Market Fund + 0.13 1.51 1.66 1.13 0.57
Bloomberg Barclays U.S. Short T-Bills (1-3M) Index ± 0.02 1.47 1.68 1.14 0.61
Calendar Year 2019 2018 2017 2016 2015 2014
CUIT Money Market Fund + 2.20 1.74 0.93 0.31 0.02 0.05
Bloomberg Barclays US Short Treasury - Bills (1-3M) Index± 2.21 1.82 0.81 0.33 0.05 0.04

 

Source: BNY Mellon, SS&C

+ The CUIT Money Market Fund changed its investment approach from overnight repurchase agreements, to actively managed effective 8/1/01.

± Effective April 1, 2017, the benchmark for the CUIT Money Market Fund was changed to the Bloomberg Barclays U.S. Short Treasury Bills (1-3 Month) Index. For periods prior to April 1, 2017, the applicable benchmark was the Merrill Lynch 91-Day Treasury Bill Index.

Characteristics as of 06/30/2020

Statistics Fund Index
Effective Duration (Yrs) 0.2 0.1
Average Quality A-1 A-1+
Yield-to-Maturity 0.4% 0.1%
Maturity Distribution Fund
0 to 7 Days 2.1
8 to 29 Days 26.1
30 to 59 Days 18.0
60 to 89 Days 12.0
90 to 179 Days 33.2
180 and Over 8.6
Market Sector Analysis Fund Index
U.S. Government & Agencies 63.9 100.0
Certificates of Deposit 3.2 0.0
Repurchase Agreements 3.1 0.0
Commercial Paper 0.0 0.0
Corporate 10.9 0.0
Asset-Backed Securities 19.9 0.0
Non-Corporate Credit 0.0 0.0
Cash -0.9 0.0
Credit Quality Fund Index
A-1+ or higher 88.8 100.0
A-1 10.1 0.0
Less than A-1 1.1 0.0

 

 

Source: FactSet
Credit Quality: Cash is included in A-1+ or higher
Maturity Distribution: Cash is included in 0 to 7 Days

  • Q2 2020 Performance Review

    12-Month Review

    • The Fund outperformed the for the period.
    • The Federal Reserve’s emergency rate cut to near zero remained in place to support the economy during the COVID-19 pandemic. The last time the Fed lowered the overnight borrowing rate to a zero lower bound was in late 2008 in response to the Global Financial Crisis.
    • During the 12-month period, the Fund’s yield to maturity also declined from 2.36% at the end of June 2019 to end the period at 0.44% on June 30, 2020.
    • A combined allocation to consumer ABS and investment grade Corporates largely contributed to The duration of the Fund, which was longer than the benchmark’s, was additive. The Fund’s positioning in US Governments had a negative impact for the period.

    3-Month Review

    • The Fund outperformed the benchmark. An underweight to US Treasuries and allocations to investment grade Corporate credit and consumer ABS had a positive impact on results. In addition, the Fund’s duration/yield curve positioning had a positive impact, as well with positioning in US governments, which contributed modestly to results.
    • Rates remained at near zero levels as the Federal Reserve continued to support the economy as COVID-19 continues to stall economic growth. In the short-term, the Fed projects a 6.5% decline in economic output in 2020.
    • During the 3-month period, the Fund’s yield to maturity declined.

    Current Positioning

    • The base case expectation is for a sharp, deep global recession; the shape of the recovery will depend on public health and fiscal measures. The US trails other countries on the coronavirus curve. However, there needs to be more clarity on the duration and efficacy of containment strategies before they can truly quantify the impact on economic growth. Quality names should weather the downturn. Markets likely to stay unsettled until public health issue shows significant signs of improvement. Most spread assets are priced for a recession. Biased to add risk while managing portfolio liquidity. The portfolio’s duration posture is close to neutral.
    • The Fund maintains a modest pro-cyclical positioning in corporate bonds. Valuations are attractive, though they are focusing on higher-quality credits during this uncertain economic environment.

     

 

All attribution is based on gross portfolio performance.

  • Fund Fact Sheet

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