SSgA Intros New MMFs, USBFs
SSgA issued a press release entitled, "State Street Global Advisors Expands Money Market and Bond Fund Line-up." It says, "State Street Global Advisors (SSGA) today announced additions to its cash management product line-up designed to provide clients with options as they plan for market and regulatory changes to the cash investing landscape." (See our Oct. 16 News, "SSgA Meets Challenges With New Money Funds, Enhanced Cash Options.") Barry F.X. Smith, head of SSGA's Global Cash Business, comments, "The environment for cash investors changed dramatically after the 2008 financial crisis. We developed these products to offer a broad array of solutions to best meet the cash management needs of global institutions.... After speaking at length with clients and conducting broad-based market research, we are confident that we are offering them the right mix of options to meet their cash investment and business needs." The release adds, "When launched, the addition of the `six new funds, three money market funds and three bond funds, will bring the total number of SSGA's cash and short term fixed income fund offerings to 14." It continues, "Prime Money market Funds. SSGA will continue to offer prime money market funds and is adding three new prime funds to complement its flagship fund, State Street Institutional Liquid Reserves Fund. Institutional Prime Funds: State Street 60 Day Money Market Fund: The State Street 60 Day Money Market Fund will seek to provide preservation of capital while generating current income, and will serve as a bridge fund between prime and government strategies. State Street Institutional Liquid Assets Fund: The State Street Institutional Liquid Assets Fund will seek to maximize current income, to the extent consistent with the preservation of capital and liquidity by investing in US dollar‐denominated money market securities. The fund will carry a maximum weighted average maturity (WAM) of 60 and maximum weighted average life (WAL) of 120. Retail Prime Fund: State Street Cash Reserves Fund: The State Street Cash Reserves Fund will seek to maximize current income, to the extent consistent with the preservation of capital and liquidity and the maintenance of a stable $1.00 per share net asset value ("NAV") by investing in US dollar-denominated money market securities. This fund will be offered to intermediaries with a retail client base. As a retail fund, it will seek to maintain a constant NAV. However, it is subject to Rule 2a-7's liquidity fee and redemption gate requirements. Short-Term Bond Funds: To further demonstrate its short term fixed income management capabilities, SSGA intends to offer the following short-term bond funds not subject to Rule 2a-7's liquidity fees or redemption gates: State Street Current Yield Fund. This State Street Current Yield Fund will seek to provide current yield, and intends to invest up to 100% of its assets in tier II credits and maintain a maximum WAM of 45, maximum WAL of 60 and a maximum final maturity of 90 days. State Street Conservative Income Fund. The State Street Conservative Income Fund will seek to provide current income, while seeking to maintain a WAM of 90 and a WAL of 250. State Street Ultra Short Term Bond Fund. The State Street Ultra Short Term Bond Fund will seek to provide current income and total return. This fund will hold a diversified portfolio of investment grade securities. "As regulations come into effect in 2016, we anticipate an increase in demand for short-term government securities," added Smith. "In addition to these six new funds, we also continue to evaluate opportunities for new product development, and we remain actively engaged in discussions with our distribution partners and clients in an effort to understand how our investors' liquidity and cash management needs are changing."
