Several money market fund family changes have come to our attention in recent weeks, including Prime to Government fund conversions by Columbia Threadneedle and Dreyfus. We also report on how Dreyfus, the 6th largest US money fund family with $161.9 billion in assets, will categorize their Institutional, Retail, and Government funds. Further, we have more information on when Deutsche will convert its Prime MMFs to Government funds. Also, there's fund merger news from Fidelity and BNP Paribas. Yesterday, we reported on Federated's announcement of which funds it will categorize as Institutional; Federated also announced plans to offer a stable value private fund to qualified investors in Q1 of 2016. (See our Nov 17 News, "Federated Designates Inst MMFs; Wells, Goldman, BlackRock Gain in Oct.," and see our November Money Fund Intelligence for the latest overall recap on fund lineup changes.)
Through mutual fund publication ignites, we learned recently that Columbia Threadneedle Investments plans to convert its $1.5 billion Columbia Money Market Fund to a Government fund. The SEC filing says, "At a meeting held on September 16-18, 2015, the Board of Trustees of the fund listed above (the Fund) considered the likely effects of the rule changes on the Fund and approved a recommendation made by the Fund’s investment manager, Columbia Management Investment Advisers, LLC, to convert the Fund to a government money market fund on or about October 1, 2016. On such date, the Fund will be re-named Columbia Government Money Market Fund. As a government money market fund, the Fund will be required to invest 99.5% of its assets in cash, government securities and repurchase agreements collateralized by cash or government securities. By converting to a government money market fund, the Fund will seek to maintain a stable net asset value per share and will not be subject to liquidity fees or redemption gates."
Dreyfus too has begun making lineup changes to its money funds. In a document entitled, "Money market Reform: Looking Ahead," the BNY Mellon company outlines the latest plans for its funds, including fund conversion, mergers, and classifications. It says, "As the money market fund industry prepares to implement the SEC's regulatory reforms, Dreyfus is working diligently to realign our money market fund lineup to offer a diversified mix of cash management products to support the various liquidity needs and requirements of our valued clients. As such, we highlight below our first phase of product announcements, including anticipated implementation dates that have been approved by each fund's respective governing board."
Dreyfus converted its $2.3 billion Dreyfus Inst Reserves Money Fund, the former BNY Hamilton fund, into Dreyfus Inst Preferred Govt Money Market Fund on Nov. 1. (See the new prospectus here.) On May 1, 2016 it plans to convert Dreyfus Variable Investment Fund Money Market Portfolio, which will become Dreyfus Variable Investment Fund Govt MMP. With these latest conversion announcements, the total assets converting from Prime to Government now stands at roughly $237 billion.
Among the fund mergers detailed, Dreyfus Municipal Money Market Fund was merged into General Municipal MMF (Nov. 13); Dreyfus NY AMT-Free Municipal Cash Management was merged into Dreyfus NY Municipal Cash Management (Aug. 28); Dreyfus Worldwide Dollar MMF was merged into Dreyfus Liquid Assets (Sept. 18); and Dreyfus 100% US Treasury will be merged into General Treasury Prime MMF on Dec. 4, 2015. Also, Dreyfus BASIC Municipal MMF was liquidated on Aug. 18.
Dreyfus also declared which of its funds will be considered Institutional going forward, subject to the Floating NAV and fees and gates once reforms are implemented. They are: Dreyfus Cash Management; Dreyfus Institutional Cash Advantage Fund; Dreyfus Institutional Preferred Money Market Fund Prime; Dreyfus Institutional Preferred Plus Money Market Fund Prime; and Dreyfus Tax Exempt Cash Management.
The firm also designated which funds will be Retail, post-reforms. They are: Dreyfus AMT-Free Municipal Reserves; Dreyfus BASIC Money Market Fund; Dreyfus Liquid Assets; Dreyfus California AMT-Free Municipal Cash Management; Dreyfus Municipal Cash Management Plus; Dreyfus New Jersey Municipal Money Market Fund; Dreyfus New York Municipal Cash Management; General California Municipal Money Market Fund; General Money Market Fund Prime; General Municipal Money Market Fund; and General New York Municipal Money Market Fund.
In addition, Dreyfus expanded the strategies of two Treasury funds to include Treasuries and Agencies -- Dreyfus Inst Reserves Treasury Prime MMF changed into Dreyfus Inst Treasury and Agency Cash Advantage on Sept 1; and Dreyfus US Treasury Reserves changed to General Treasury and Agency MMF on Sept. 1. Other fund changes that took effect on Sept. 1 included: Dreyfus AMT Free Municipal Reserves changed its name to General AMT-Free Municipal MMF; Dreyfus Inst Reserves Treasury Prime MMF changed into Dreyfus Inst Treasury Prime Cash Advantage; Dreyfus NJ Municipal Cash Management changed into General NJ Municipal MMF; and, General NY Municipal MMF changed into General NY AMT-Free Municipal MMF.
Finally, Dreyfus categorized its Government funds. They are: Dreyfus Govt Cash Management; Dreyfus Govt Prime Cash Management; Dreyfus Inst Preferred Govt MMF; Dreyfus Inst Treasury and Agency Cash Advantage; Dreyfus Inst Treasury Prime Cash Advantage; Dreyfus Treasury and Agency Cash Management; Dreyfus Treasury Prime Cash Management; General Treasury and Agency MMF; General Government Securities MMF; General Treasury Prime MMF; and Dreyfus VI Fund Govt MMP (effective May 1, 2016). (Note: Fidelity will also merge its US Government Reserves (FGRXX) into Fidelity Govt Money Market: Premium Class (FZCXX) on Friday, Nov. 20.)
Further, we learned more about Deutsche Wealth and Asset Management's Prime to Government conversions, which we first reported in our July 21 News, "Deutsche Announces Reform Plans, Will Convert Most Prime MFs to Govt. Deutsche announced that it will convert 5 Prime Institutional portfolios into Government funds, including Cash Management Fund; Cash Reserves Fund Institutional; Deutsche Money Market Series; Deutsche Money Market VIP; and Prime Series of Cash Reserve Fund, Inc. It will keep just one Prime Institutional Fund, the $113 million Deutsche Variable NAV Money Market Fund. A recent prospectus filing provides additional information on the fund conversions, including the date that conversions will be completed, May 2, 2016.
Finally, we learned of a recent offshore money fund merger. A shareholder update issued by BNP Paribas Global Liquidity Funds says, "The purpose of this circular is to explain to you our proposal to merge BNP Paribas GLF USD (the "Merging Fund"), a sub-fund of BNP Paribas Global Liquidity Funds plc with BNP Paribas InstiCash USD (the "Receiving Fund"), a sub-fund of BNP Paribas InstiCash, a Luxembourg umbrella SICAV. This circular also sets out the common terms of the proposed merger and explains how the merger is to be effected in accordance with the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011, as amended (the "UCITS Regulations")."
