CCCXX - California Municipal Cash Trust | Definition and Explanation

For investors seeking a combination of liquidity, tax advantages, and principal stability, CCCXX, also known as the California Municipal Cash Trust, offers a compelling option. This fund is structured as a money market mutual fund focusing on high-quality, short-term California tax-exempt securities.

In this article, we’ll answer the question, “What is CCCXX?” and explore the fund’s goals, structure, performance, and portfolio characteristics to give a full understanding of how it fits into a tax-efficient cash management strategy.

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What Is CCCXX?

CCCXX is the ticker symbol for the California Municipal Cash Trust, a fund managed by Federated Hermes, aimed at generating current income exempt from federal and California personal income taxes, while maintaining a stable net asset value (NAV).

The fund primarily invests in California municipal securities that mature in 397 days or less, aligning it with the standards and goals of money market instruments.

Investment Objectives

The fund has four key investment goals:

1. Income: Seeks to generate steady, tax-exempt interest income.

2. Cash Management: Suitable for investors needing a parking spot for short-term liquidity.

3. Tax Awareness: Prioritizes securities exempt from federal and California state taxes.

4. Principal Stability: Maintains a stable $1.00 NAV, making it attractive for risk-averse investors.

Key Fund Details

Fund Management Team

The fund is co-managed by seasoned professionals at Federated Hermes:

1. Michael Sirianni Jr., Senior Vice President & Senior Portfolio Manager, with 38 years of experience.

2. Kyle Stewart, CFA, Vice President & Senior Portfolio Manager, with 29 years of experience.

Their extensive expertise ensures a disciplined approach to liquidity management and credit quality.

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Portfolio Composition and Strategy

As of April 30, 2025, the fund’s assets are allocated as follows:

1. Variable Rate Demand Notes: 57.7%

2. Commercial Paper: 33.3%

3. Municipal Bonds/Notes: 9.0%

The effective maturity schedule emphasizes short-duration holdings to maintain liquidity and NAV stability:

1. 1–7 days: 58.7%

2. 8–30 days: 11.1%

3. 31–90 days: 22.4%

4. 91+ days: 7.8% (combined)

This maturity profile helps the fund meet daily liquidity needs and mitigates interest rate risk.

Credit Exposure

Top obligors in the portfolio as of April 2025 include:

1. Mizuho Bank Ltd. – 11.7%

2. Kaiser Permanente – 11.6%

3. Bank of America N.A. – 8.6%

4. Federal Home Loan Mortgage Corp. – 7.5%

5. University of California – 6.9%

This diverse allocation across respected financial and public institutions underpins the fund’s stability.

Performance Overview

Returns have been modestly positive, reflecting the conservative nature of the investments and the fund’s commitment to principal protection and tax-exempt income.

Why Consider CCCXX?

Investors often wonder what CCCXX is good for, the answer lies in its strategic benefits:

1. Tax Efficiency: Exempts income from federal and California state income tax.

2. Stability: NAV is maintained at $1.00, ideal for cash preservation.

3. Liquidity: Daily liquidity with same-day settlement cutoffs at 1:00 p.m. (purchases) and 12:00 p.m. (redemptions).

4. Low Risk: Short maturity schedule and high credit quality minimize volatility.

5. Competitive Yield: Despite being a money market fund, CCCXX delivers a yield that appeals in a high-rate environment.

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Market Environment and Outlook

Source: CNBC

CCCXX’s rising popularity aligns with broader investor trends, many are shifting toward money market funds amid equity market volatility and low yields from traditional deposit accounts.

As of March 2025, U.S. money market fund assets surpassed $7 trillion, signaling increased demand for short-term, stable investments.

With the Fed holding interest rates at a 4.25–4.50% range and signaling no rate cuts until later in 2025, products like CCCXX are likely to remain attractive for cash-conscious, tax-aware investors.

Conclusion

The California Municipal Cash Trust (CCCXX) is a robust solution for investors in need of a low-risk, tax-advantaged cash management vehicle.

Its combination of stable returns, tax exemption, and short-term liquidity makes it especially attractive for California residents or tax-sensitive individuals nationwide.

Managed by a seasoned team and backed by a diversified, high-credit portfolio, CCCXX continues to fulfill its mission: delivering income with integrity and stability.

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FAQ

Q1. What is CCCXX?
A: CCCXX is the ticker symbol for the California Municipal Cash Trust, a money market mutual fund managed by Federated Hermes. It seeks current income that is exempt from both federal and California personal income taxes, while maintaining principal stability with a $1.00 net asset value (NAV).

Q2. What is the NAV and how often does it change?
A: The NAV (Net Asset Value) for CCCXX is generally maintained at $1.00 per share. Daily fluctuations are minimal due to its focus on short-term, high-quality instruments. As of June 4, 2025, the NAV was $1.00 with a shadow NAV of $1.0001.

Q3. Is CCCXX suitable for non-California residents?
A: Yes, but the tax benefits are maximized for California residents. Investors in other states may not receive the same level of state tax exemption.

Q4. What is the current yield of CCCXX?
A: As of the most recent report, CCCXX offered a gross dividend yield of 2.40%, making it competitive in today’s rate environment for a money market fund.