Money Market Fund Commentary
Short-term credit markets remained anchored close to zero, reflecting the continuing impact of the COVID-19 pandemic, which is now more than a year old. The federal funds target range began and ended the period at 0.0% - 0.25%. Gross money market fund yields are at record lows as repurchase agreements and shortterm government debt returns near zero continued to prompt fund sponsors to shore up fund yields.
Positioning the Money Market Funds
Portfolio composition is subject to change. The Federal Open Market Committee isn’t expected to raise rates in the near future. We continue to use a blend of overnight repurchase agreements, floatingrate notes, short-term government debt, and other short-duration investments to capture what yield we can while staying true to the money market fund value proposition: safety, liquidity, and yield.
Why should investors consider investing in this Fund?
Despite the low interest rate levels, our money market funds provide professionally managed, liquid holding vehicles for short-term assets. Both are rated AAAm and Aaa-mf by Standard & Poor’s and Moody’s, respectively.
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 www.cavanalhillfunds.com. Please read it carefully before investing.
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.