BlackRock Liquidates TempFund, LEAF
On Friday, BlackRock filed to liquidate 2 of its 3 Prime Institutional money market funds, bringing the number of Prime Inst MMFs liquidating or converting to Government to 12 to date (with total assets of $245.8 billion, or 38.7% the $635.8 billion in Prime Inst MMFs). A Prospectus Supplement dated June 7 for the $5.4 billion BlackRock Liquidity Funds - TempFund says, "On May 16, 2024, the Board of Trustees of BlackRock Liquidity Funds (the 'Trust') on behalf of its series TempFund, approved a proposal to close the Fund to new investors and thereafter to liquidate the Fund. Accordingly, effective at 3:00 p.m. (Eastern time) on June 14, 2024, the Fund will no longer accept purchase orders from new investors. On or about September 5, 2024 (the 'Liquidation Date'), all of the assets of the Fund will be liquidated completely, the shares of any shareholders holding shares on the Liquidation Date of the Fund will be redeemed at the net asset value per share and the Fund will then be terminated as a series of the Trust." It continues, "Shareholders may continue to redeem their Fund shares at any time prior to the Liquidation Date. In preparation for the liquidation, the Fund may deviate from its investment objective and principal investment strategies. Shareholders should consult their personal tax advisers concerning their tax situation and the impact of the liquidation on their tax situation." A second June 7 filing for the BlackRock Funds - BlackRock Liquid Environmentally Aware Fund, a "Prospectuses and Statement of Additional Information of the Fund," explains, "On May 16, 2024, the Board of Trustees of BlackRock Funds (the 'Trust'), on behalf of its series, BlackRock Liquid Environmentally Aware Fund (the 'Fund'), approved a proposal to close the Fund to new investors and thereafter to liquidate the Fund. Accordingly, effective 3:00 p.m. (Eastern time) on June 14, 2024, the Fund will no longer accept purchase orders from new investors to purchase Fund shares. On or about September 5, 2024 (the 'Liquidation Date'), all of the assets of the Fund will be liquidated completely, the shares of any shareholders holding shares on the Liquidation Date will be redeemed at the net asset value per share and the Fund will then be terminated as a series of the Trust." BlackRock adds, "Shareholders may continue to redeem their Fund shares at any time prior to the Liquidation Date. In preparation for the liquidation, the Fund may deviate from its investment objective and principal investment strategies. Shareholders should consult their personal tax advisers concerning their tax situation and the impact of the liquidation on their tax situation." BlackRock is not liquidating its $17.0 billion TempCash (TMCXX) Prime Inst portfolio, nor its $3.2 billion Prime Retail BlackRock Wealth LEAF (PINXX). For more on Prime Institutional MMF changes, see these Crane Data News stories: "Allspring to Merge Heritage MMF Into Govt MMF; UBS Converting Fund" (6/3/24), "DWS Liquidating ESG Liquidity Fund, 7th Prime Inst to Exit" (5/22/24), "Dreyfus Files to Liquidate Cash Management Prime Inst MMF, Tax Exempt" (5/13/24), "Goldman Files to Liquidate Prime Inst MMFs; Barron's: MMFs Tempting" (4/22/24), "Federated Liquidating Money Mkt Trust" (4/1/24), "Vanguard Market Liquidity Fund Files to Go Government, Joins American" (3/20/24) and "American Funds Central Cash to Convert to Govt to Avoid Liquidity Fees" (2/6/24).) For more on liquidations in the ESG MMF space, see these stories, "UBS Latest to Abandon ESG Money Funds; JNL Liquidates Money Fund" (10/13/23) and "Morgan Stanley Latest to Abandon ESG MMFs; Weekly, ICI Portfolio Holds" (8/16/23).
