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 0.35% (reflects partial waiver of the Trust Management Fee)

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 03/31/2020

Trailing 3 Months 1 Year 3 Years 5 Years 10 Years
CUIT Money Market Fund + 0.36 1.97 1.68 1.11 0.56
Bloomberg Barclays U.S. Short T-Bills (1-3M) Index ± 0.47 2.08 1.74 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 03/31/2020

Statistics Fund Index
Effective Duration (Yrs) 0.3 0.1
Average Quality A-1+ A-1+
Yield-to-Maturity 1.5% 0.0%
Maturity Distribution Fund
0 to 7 Days 16.6
8 to 29 Days 14.4
30 to 59 Days 29.5
60 to 89 Days 12.0
90 to 179 Days 18.1
180 and Over 9.4
Market Sector Analysis Fund Index
U.S. Government & Agencies 31.1 100.0
Certificates of Deposit 8.7 0.0
Repurchase Agreements 13.4 0.0
Commercial Paper 6.1 0.0
Corporate 13.6 0.0
Asset-Backed Securities 26.5 0.0
Non-Corporate Credit 0.0 0.0
Cash 0.7 0.0
Credit Quality Fund Index
A-1+ or higher 82.4 100.0
A-1 16.2 0.0
Less than A-1 1.4 0.0

 

 

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

  • Q1 2020 Performance Review

    12-Month Review

    • On March 15, 2020, the Federal Reserve announced an emergency rate cut to support the economy during the coronavirus pandemic. The target range for the federal funds rate declined from ~1.50% – 1.75% to 0.00% – 0.25%. 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 2.67% at the end of March 2019 to end the period at 1.47% on March 31, 2020.
    • An allocation to consumer ABS and investment grade Corporates contributed. Duration, which was longer than the benchmark’s, was additive. Positioning in US Governments and Non-Corporate credit had a neutral impact.

    3-Month Review

    • The Federal Reserve unexpectedly cut interest rates to near zero on March 15, 2020 in support of the economy during the COVID-19 pandemic. Yields on the front end of the curve declined during the quarter.
    • During the 3-month period, the Fund’s yield to maturity declined.
    • Underweight to US Treasuries and allocations to consumer ABS and investment grade Corporate credit had a negative impact on results. However, the duration/yield curve positioning had a positive impact while positioning in US Governments and Non-Corporate credit had a neutral impact.

    Current Positioning

    • Base case expectation is for a sharp, deep global recession; the shape of the recovery will depend on public health and fiscal measures. The U.S. trails other countries on the coronavirus curve. However, there needs to be more clarity on the duration and efficacy of containment strategies before we 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 Fund’s duration posture is close to neutral.
    • The sub-advisor 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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