A filing for the Morgan Stanley Institutional Liquidity Fund tells us in a "Supplement dated June 17, 2024 to the Morgan Stanley Institutional Liquidity Funds Impact Partner Class Summary Prospectus and Prospectus dated February 29, 2024 Money Market Portfolio," "Effective June 17, 2024, shares of the Fund are available to investment through the direct to fund company operating model on the portal hosted by Morgan Stanley Investment Management Inc. (CashInvest by Morgan Stanley). The Fund will continue to be available to investment through a Financial Intermediary (as defined below)." (Note: Please join us for our next conference, European Money Fund Symposium, which will take place Sept. 19-20, 2024 in London, England! Attendees and Crane Data subscribers may access our latest conference binder and materials via our "Money Fund Symposium 2024 Download Center.")
They explain, "Accordingly, on the Effective Date, the first paragraph of the section of the Summary Prospectus entitled 'Purchase and Sale of Fund Shares' and the Prospectus entitled 'Fund Summary -- Money Market Portfolio -- Purchase and Sale of Fund Shares' is hereby deleted in its entirety and replaced with the following: Investments in the Fund are limited to shareholder accounts beneficially owned by natural persons. Impact Partner Class shares of the Fund are available to investors who at the time of initial purchase make a minimum investment of $1 million and who invest in the Fund either through a full-service financial intermediary ... or using the direct to fund company operating model on the Adviser-hosted portal (CashInvest by Morgan Stanley). You may not be subject to the minimum investment requirement under certain circumstances."
The filing states, "Shares of the Fund may be purchased or sold on any day the New York Stock Exchange ('NYSE') is open for business (except when the following federal holidays are observed: Columbus Day and Veterans Day) by contacting a Financial Intermediary. You may also purchase and redeem shares online using the direct to fund company operating model on CashInvest by Morgan Stanley at www.morganstanley.com/liquidity, provided you have a pre-established Internet trading account."
It also says, "Additionally, on the Effective Date, the section of the Prospectus entitled 'Shareholder Information -- Minimum Investment Amount' is hereby deleted in its entirety and replaced with the following: Impact Partner Class shares are available to investors who at the time of initial purchase make a minimum investment of $1 million and who invest in the Fund either through a full-service financial intermediary ... or using the direct to fund company operating model on CashInvest by Morgan Stanley. The Adviser, in its sole discretion, may waive the minimum initial investment amount in certain cases including, but not limited to, shares of the Fund purchased through a financial intermediary or when the Adviser anticipates the combined value of a client's investments will meet or exceed the minimum."
Morgan Stanley adds, "Additionally, on the Effective Date, the first paragraph of the section of the Prospectus entitled 'Shareholder Information -- How to Purchase Shares' is hereby deleted in its entirety and replaced with the following: Impact Partner Class shares of the Fund may be purchased through a Financial Intermediary or using the direct to fund company operating model on CashInvest by Morgan Stanley."
Another Prospectus Supplement filing for the Morgan Stanley Institutional Liquidity Funds Prime Portfolio states, "Effective September 9, 2024 ..., the number of times and the time of day that the Fund determines its net asset value ('NAV') is amended from three times each business day, currently occurring at 8:00 a.m., 12:00 p.m. and 3:00 p.m. Eastern time, to one time each business day, which will be changed to 2:00 p.m. Eastern time. Also on the Effective Date, a corresponding change will be made to the final trade cut-off time and the time used to determine whether a shareholder is entitled to receive a dividend from the Fund from 3:00 p.m. Eastern time to 2:00 p.m. Eastern time."
It explains, "Accordingly, beginning on the Effective Date: (i) orders to purchase shares of the Fund must be received by the Fund prior to 2:00 p.m. Eastern time, and in accordance with the terms described in the Prospectus, to receive the NAV next determined; (ii) the NAV of the Fund will be determined once daily, normally 2:00 p.m. Eastern time, on each day that the New York Stock Exchange is open, except when the following federal holidays are observed: Columbus Day and Veterans Day; (iii) orders to sell shares (redemption requests) will be processed on the day on which they are received, provided that they are received prior to 2:00 p.m. Eastern time, and in accordance with the terms described in the Prospectus, to receive the NAV next determined; and (iv) for daily income dividend declaration purposes, if your purchase order is received in good order by the Fund prior to 2:00 p.m. Eastern time, then you will be a shareholder of record as of the same business day (i.e., on the day the trade settles)."
Finally, in related news, a filing for the UBS Select 100% US Treasury Preferred Fund and UBS Select 100% US Treasury Institutional Fund explains, "The purpose of this supplement is to update certain information for UBS Select 100% US Treasury Preferred Fund and UBS Select 100% US Treasury Institutional Fund, series of UBS Series Funds <b:>`_. First, at the recommendation of UBS Asset Management (Americas) LLC, each fund's administrator (and advisor to the related master fund), the Board of Trustees of the Trust approved extending the pricing times for the funds to until 3:00 p.m. (Eastern time), including hourly pricing points at 1:00 p.m. and 2:00 p.m. (Eastern time)."
UBS continues, "Second, this supplement updates certain information regarding the principal risks of the funds. Effective immediately, the prospectuses and SAI are hereby revised as follows: The section captioned 'Fund summary' and sub‑captioned 'Principal strategies -- Principal investments' for the fund in each prospectus is revised by replacing the third paragraph in its entirety with the following: The Fund will generally hold a portion of its assets in cash for operational purposes, including cash earning interest held at the fund’s custodian."
They write, "The section captioned 'Fund summary' and sub-captioned 'Principal risks' for the fund in each prospectus is revised by adding the following after 'US withholding tax risk' as a principal risk of the fund: Risk associated with the fund holding cash: The fund will generally hold a portion of its assets in cash for operational purposes. Cash positions may hurt performance and may subject the fund to additional risks and costs, such as increased exposure to the custodian bank holding the assets and fees imposed for large cash balances. In addition, interest income received by the fund from cash held at the custodian would not qualify for the state and local income tax exemption applicable to certain dividends paid by the fund that are derived from interest income with respect to US government securities."
The filing adds, "The section captioned 'More information about the fund' and sub-captioned 'Additional information about investment strategies' in each of the prospectuses is revised by inserting the following as the fourth sentence of the first paragraph of that section: Interest income received by the fund from cash held at the custodian would not qualify for the state and local income tax exemption applicable to certain dividends paid by the fund that are derived from interest income with respect to US government securities."
