BlackRock TempCash Filing on Fees
A Prospectus Supplement for BlackRock Liquidity Funds' TempCash tells us, "The Securities and Exchange Commission ('SEC') approved new amendments to the rules governing money market funds in July 2023. Among the changes, the SEC adopted rules that require institutional prime and institutional tax‑exempt money market funds to apply a mandatory liquidity fee to all shares redeemed on a day that such a fund has total net redemptions that exceed 5% of the fund's total assets, unless the amount of the fee is determined to be less than 0.01% of the value of the shares redeemed. The compliance date for these amendments is October 2, 2024. Consequently, effective October 2, 2024, the Fund's Summary Prospectus and Prospectus are amended as follows: The section of the Summary Prospectus and Prospectus entitled 'Key Facts About TempCash -- Principal Risks of Investing in the Fund' and 'Fund Overview -- Key Facts About TempCash -- Principal Risks of Investing in the Fund,' is hereby amended to delete the first paragraph thereof in its entirety and replace it with the following: Risk is inherent in all investing." It continues, "You could lose money by investing in the Fund. Because the share price of the Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The Fund may impose a fee upon the sale of your shares. The Fund generally must impose a fee when net sales of Fund shares exceed certain levels. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including during periods of market stress." The filing tells us, "The section of the Summary Prospectus and Prospectus entitled 'Key Facts About TempCash -- Principal Risks of Investing in the Fund' and 'Fund Overview -- Key Facts About TempCash -- Principal Risks of Investing in the Fund,' is hereby amended to add the following paragraph in its proper alphabetical order: Mandatory Liquidity Fee Risk -- The Board, or its delegate, must impose a mandatory liquidity fee upon the sale of your shares if the Fund's net redemptions on any business day exceed 5% of the Fund’s net assets, unless the liquidity costs are de minimis. Accordingly, your redemptions may be subject to a liquidity fee when you sell your shares at certain times. The sixth paragraph of the section of the Prospectus entitled 'Details About the Fund -- How The Fund Invests' is hereby deleted in its entirety and replaced with the following: The Trust's Board of Trustees (the 'Board'), or its delegate, will be required to impose a mandatory liquidity fee on redemptions from the Fund when net redemptions in the Fund exceed 5% of the Fund's net assets on any business day, unless the liquidity costs are de minimis. Additionally, the Board, or its delegate, may impose a discretionary liquidity fee on redemptions from the Fund (up to 2%) under certain circumstances. Please see the section below titled 'Account Information -- Mandatory and Discretionary Liquidity Fees' for additional information about mandatory and discretionary liquidity fees."
