Money Market Fund Commentary

1Q 2023

Market Overview

March was quite an eventful month in the financial industry. Two top 20 U.S. banks were put into receivership and Credit Suisse, one of the world’s biggest banks, was forced to allow itself to be acquired by UBS. This happened against a backdrop of the Federal Reserve Open Market Committee’s (FOMC) ongoing campaign to raise short-term interest rates. In the first quarter, rates were raised twice to a range of 4.75%-5.00%.

Positioning the Money Market Funds

Portfolio composition is subject to change.

We believe the FOMC is close to the end of its tightening campaign, but that rates will still rise a little more as the year goes on. Accordingly, we have large positions in overnight repurchase agreements and cash-like items in both funds. We also have agency Secured Overnight Financing Rate (SOFR) floating rate notes in the Government Securities Money Market Fund and a relatively small position in a longer-term Federal Home Loan bank note.

Why should investors consider investing in this Fund?

Cash is king at the moment! Investors can earn very attractive returns in money market funds for the first time in quite a while. Both the Government Securities Money Market Fund and the U.S. Treasury Fund are rated AAAm/Aaa-mf by Standard & Poor’s and Moody’s, so investors can be assured that our funds are managed to guidelines established by the two largest U.S. rating agencies.

An investor should consider a fund’s investment objectives, risks and charges and expenses carefully before investing or sending money This and other important information about an investment company can be found in the fund’s prospectus. To obtain a Cavanal Hill Funds prospectus or summary prospectus, please call 800-762- 7085 or visit us at Please read it carefully before investing.

Cavanal Hill Investment Management, Inc. is an SEC registered investment adviser and a wholly-owned subsidiary of BOK Financial Corporation, a financial holding company (“BOKF”). BOKF, NA serves as the custodian for the Cavanal Hill Funds. Cavanal Hill Investment Management, Inc. provides investment advice, administration and other services for the Funds and receives a fee for providing such services as fully described in the prospectus. The Funds are distributed by Cavanal Hill Distributors, Inc. a registered Broker/Dealer, member FINRA and wholly-owned subsidiary of BOKF.

You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Commentary provided is for the indicated period and is designed to provide a fame of reference. It does not constitute investment advice. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. The opinions expressed herein reflect the judgment of the authors at this date and are subject to change without notice and are not a complete analysis of any sector, industry or security. This document contains forward-looking statements that are based on management’s beliefs, assumptions, current expectations, estimates and projections about the Cavanal Hill Funds, the securities and credit markets and the economy in general. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “plans,” “projects,” variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the value and potential future value or performance of any security, group of securities, type of security or market segment involve judgments as to expected events are inherently forward-looking statements. Management judgments relating to and discussion of the value and potential future value or performance of any security, group of securities, type of security, group of securities, type of security or market segment involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expressed, implied, or forecasted in such forward-looking statements. The potential realization of these forward-looking statements is subject to a number of limitations and risks, which are described in the Fund’s prospectuses, and investors or potential investors, are cautioned to review the Funds’ prospectuses and the description of such risks. Neither the Funds not the Funds’ investment adviser, Cavanal Hill, undertake any obligation to update, amend, or clarify forward-looking statement, whether as a result of new information, future events or otherwise.

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