A press release entitled, "Ramirez Asset Management Readies to Launch Two Commingled Funds," tells us, "Ramirez Asset Management ('RAM') will enter the pooled investment market with the launch of two mutual funds that will offer share classes for both retail and institutional investors. These funds will launch on December 15, 2023. The Ramirez Government Money Market Fund (Retail: RMZXX; Institutional: RAMXX) will seek to maximize current income while prioritizing the preservation of capital and the maintenance of liquidity by investing securities issued by the U.S. government, its agencies, and instrumentalities; including repurchase agreements that are collateralized solely by U.S. government securities. The fund will be unique in the money fund marketplace as one of few managed by a diverse investment manager."
Ramirez' release explains, "Further, RAM has committed to donate 10 percent of the fund's net management revenues to the Hispanic Scholarship Fund and will target 50 percent of trades to be executed with minority, women, disabled persons and veteran dealers. The fund will be available for direct investment on December 15 and accessible on most of the industry-leading cash management portals in early January."
It continues, "The Ramirez Core Bond Fund (Retail: RAMRX; Institutional: RAMIX) will seek to maximize total return by investing primarily in a diversified portfolio of fixed income securities. The Core Bond Fund will be managed similarly to RAM's Strategic Core Strategy, which is benchmarked against the Bloomberg U.S. Aggregate index using a multi-sector approach utilizing a time-tested investment process and a differentiated investment style. RAM has a 10+ year track record managing this product for institutional investors in separately managed accounts."
The release adds, "RAM's fixed income team led by portfolio managers Sam Ramirez Jr., Louis Sarno, Helen Yee and Alex Bud, will manage both funds. These professionals collectively have more than 120 years of industry experience.... Founded in 2002 and headquartered in New York City, registered investment adviser Ramirez Asset Management, Inc. (RAM) is affiliated with Samuel A. Ramirez & Co. Inc., one of the oldest and largest Hispanic-owned investment banks in the U.S. and a leader in the fixed income market. RAM is focused on fixed income and equity asset management for a diverse client base, including public and private defined benefit and defined contribution plans, Taft Hartley plans, corporations, state and local governments, as well as foundations and endowments."
Ramirez Government Money Market Fund's Institutional (RAMXX) has a CUSIP of 00777X504, a Minimum Initial Investment of $1 million and expense ratio of 0.35%. The Retail class (RMZXX) has the CUSIP of 00777X405, a Minimum of $5,000 and an expense ratio of 0.60%.
For more on ESG see these Crane Data News stories: "Nov. MFI: D&I Shares All the Rage; Portal News; Liquidity Fee Filings (11/7/23), "HSBC Launches 'P' Purpose Share Class; Cavu Paper on DEI Money Funds (11/2/23), "Allspring Launches Roberts & Ryan Class; ICD's New Portfolio Analytics" (10/24/23), "UBS Latest to Abandon ESG Money Funds; JNL Liquidates Money Fund" (10/13/23), "Morgan Stanley Latest to Abandon ESG MMFs" (8/16/23), "ESMA, FSB Push European Money Fund Reforms; New HSBC ESG Euro MF" (3/27/23), "Morgan Stanley Names OFN Beneficiary of Impact Shares; ESG to Retail" (10/27/22), "SSGA to Liquidate State Street ESG Liquid Reserves" (9/19/22), "ESG Cash Investments Still Minor Says AFP Liquidity Survey, 6% Over 10%" (6/29/22), "SEC Names Rule Proposal Could Impact or Ban ESG, Social Money Funds" (6/3/22), "Dreyfus Announces New BOLD D&I Share Class with Howard University" (3/1/22), "SSGA Debuts Opportunity Class; BlackRock Bancroft, Cabrera Shares Live" (11/17/21); "More D&I: State Street Files for Blaylock Van Shares; WSJ Hits Tether" (10/27/21); "BlackRock Expands ESG Lineup; Files for New Bancroft, Cabrera Shares" (8/19/21); "Northern Renames Diversity Shares Siebert Williams; Safened Platform" (4/20/21); "Morgan Stanley Files for CastleOak Shares; Bond Fund Symposium Today" (3/25/21); "JP Morgan Launches 'Empower' Share Class to Support Minority Banks" (2/24/21); "Mischler Financial Joins 'Impact' or Social Money Market Investing Wave" (12/5/19); and "Dreyfus Launches 'Impact' or Diversity Government Money Market Fund" (11/21/19). Click here to see the Federal Home Loan Bank Office of Finance's list of D&I or diversity and inclusion, dealers.
In other news, Federated Hermes' latest insight, "A year of intrigue: Three things to watch in 2024" comments, "The markets took the December FOMC dot plot as proof the Federal Reserve capitulated to their expectations for at least five rate cuts in 2024. In contrast, we take Chair Jerome Powell's word 'cautiously' at face value and anticipate only 75 basis points of easing in the back half of the year. We just don't see inflation declining enough to satisfy policymakers, especially as energy prices have accounted for much of the decrease. Officials have not put the cautionary tale of the 1970s back on the shelf. If PCE/CPI are stubborn or surprise to the upside, the Fed likely will return to its 'higher for longer' stance."
Money market CIO Deborah Cunningham writes, "This scenario would keep cash attractive, even as some investors extend duration to other asset classes. Most liquidity products should continue to mirror the target range. You might think clients will exit the broad sector as yields fall. But past instances of policy easing actually have led to asset inflows as yields declined slower than other cash options and direct securities. That's not assured, of course, but we can guarantee 2024 will have an abundance of intrigue."
She continues, "Many of the world's central banks face similar market calls for easing, in part because they typically follow in the Fed's footsteps. Most also are struggling to convince traders and investors they are in no hurry to cut rates. The banks of Europe, England, Australia and Canada, among others, are not ready to declare victory over inflation even in the face of potential recessions. Excepting the perma-doves in the Bank of Japan, the tension between expectations and projections likely will dominate the first half of the year."
Cunningham adds, "The remainder of the SEC's new money market fund rules kick in this year, and the industry has been hard at work creating solutions for clients. The requirement for money funds to hold 30% and 50% in daily and weekly liquidity, respectively, begins April 2; enhanced reporting and accounting start June 11; and the mandatory liquidity fee on institutional prime and institutional municipal funds if net redemptions exceed 5% of the fund's total net assets (unless the liquidity cost is <0.01% of the value of the shares redeemed) begins Oct. 2. Expect the main players to alter some products and create new ones to continue to provide the benefits liquidity vehicles offer."
