Calamos Investments has filed to close and liquidate its Calamos Government Money Market Fund, ending the company's brief foray into the institutional money market fund arena. The fund, launched in May 2007, was never able to break above the critical $1 billion in assets; Calamos ranked 78th among the 90 money fund managers tracked by our Money Fund Intelligence XLS with $651 million in assets. (See our November 2008 Money Fund Intelligence profile, "Calamos Veteran Frank Rachwalski Talks Funds.")
On page 9 of a recently updated Calamos Government Money Market Fund prospectus, under "Closing and Liquidation of the Fund," it says, "`On February 20, 2009, the Board of Trustees approved the liquidation of the Fund. The Fund will close to new investors and additional purchases by existing investors at the close of business on May 1, 2009. The Fund will be liquidated as of the close of business on or about May 15, 2009." Investors will be able to exchange into other Calamos funds without sales charges. The company says, "You may also redeem your shares at any time before the liquidation. If you do not exchange or redeem your Fund shares prior to the liquidation date, those shares will be liquidated, and liquidation proceeds will be paid to you."
The filing continues, "If you wish to exchange your Fund shares for shares of another money market fund, beginning on May 1, 2009, you may exchange them for shares of the Fidelity Institutional Money Market Prime Money Market Portfolio. Class A, Class B, Class C and Class I shares of the Fund may be exchanged for Class III, Class IV, Class IV and Class I Fidelity Prime Money Market Fund Shares, respectively. Fidelity Prime Money Market Fund Shares are offered by a separate prospectus and are not offered by the Trust. If you should redeem (and not exchange) your Fidelity Prime Money Market Fund Shares, you would pay any applicable contingent deferred sales charge. For a prospectus and more complete information on Fidelity Prime Money Market Fund Shares, including management fees and expenses, please call 877.297.2952. Please read the prospectus relating to Fidelity Prime Money Market Fund Shares carefully."
Calamos becomes the fourth manager of money market mutual funds to declare a retreat from the money fund space over the past year. Munder, Credit Suisse and, most recently, Janus (institutional funds only) have all filed to liquidate their money market funds. See previous `Crane Data News articles: 9/3/08 "Munder Capital Mgmt to Liquidate Funds, Exit Money Market Business," 12/18/08 "Credit Suisse Liquidating Money Funds," and 1/22/09 "Janus Plans to Exit Institutional Money Market Mutual Fund Business."
