Western Files for Prime Retail
Western Asset filed to launch a new Prime Retail money fund, the Western Prime Obligations Money Market Fund, we learned from Strategic Insight's Simfund Filing. The Preliminary Prospectus says, "The fund is a money market fund that invests in high quality, U.S. dollar-denominated short-term debt securities that, at the time of purchase, are rated by one or more rating agencies in the highest short-term rating category or, if not rated, are determined by the subadviser to be of equivalent quality. The fund may invest in all types of money market instruments, including bank obligations, commercial paper and asset-backed securities, structured investments, repurchase agreements and other short-term debt securities. These instruments may be issued or guaranteed by all types of issuers, including U.S. and foreign banks and other private issuers, the U.S. government or any of its agencies or instrumentalities, U.S. states and municipalities, or foreign governments." It continues, "The fund is a retail money market fund, meaning that the fund is only offered to accounts that are beneficially owned solely by natural persons. As a retail money market fund, the fund tries to maintain a share price of $1.00." The new fund also includes a "small account fee" of $15 for several of the share classes. In other news, a press release entitled, "Fitch Rates Three UBS Money Market Funds 'AAAmmf'," says, "Fitch Ratings has assigned three short-term money market funds managed by UBS Global Asset Management 'AAAmmf' ratings, as follows: UBS (IRL) Select Money Market Fund - EUR: assigned AAAmmf; UBS (IRL) Select Money Market Fund - USD: assigned AAAmmf; UBS (IRL) Select Money Market Fund - GBP: assigned AAAmmf." Also, Fitch posted a Powerpoint, "Credit, Liquidity Profile Diversity Heightens Among European VNAV Money Funds." The press release announcing it says, "The credit and liquidity risk profiles of European Variable Net Asset Value (VNAV) money funds are increasingly diverse, says Fitch Ratings in a new presentation on the sector. Key findings of the reports are: Behind an average portfolio allocation to 'BBB'/'BBB-' or unrated securities of 14%, there is material allocation disparity among VNAV money funds. This is in contrast to a year ago, when they had only marginal exposure to 'BBB'/'F3' or lower assets. The most conservative ones (37%) apply the same limit to their investment guidelines than constant NAV funds. Such disparity reflects variations of return and safety objectives among European asset managers' money fund ranges. Portfolios' average maturities span the full spectrum offered under the ESMA framework. 65% European VNAV funds are domiciled in France."
