A Prospectus Supplement filing for the $9.7 billion State Street Institutional Liquid Reserves Fund, which includes Bancroft Capital (VTDXX), Administration (SSYXX), Institutional (SSHXX), Investment (SSVXX), Investor (SSZXX), Opportunity (OPIXX) and Premier (SSIXX) share classes, tells us, "The Board of Trustees has approved the conversion of the Fund to qualify as a 'government money market fund' as defined in Rule 2a-7 under the Investment Company Act of 1940, as amended. As a result, the Fund will be renamed the State Street Institutional Liquid Reserves Government Money Market Fund and will seek to achieve its investment objective by investing substantially all of its investable assets in the Street U.S. Government Money Market Portfolio."
It explains, "As a government money market fund, the Fund has not elected to be subject to the liquidity fee provision of Rule 2a‑7 and it will seek to maintain a $1.00 per share net asset value using the amortized cost valuation method, in compliance with the risk limiting conditions of Rule 2a‑7, to value its portfolio instruments. In connection with its transition from using a per share net asset value calculated to four decimal places to one calculated to two decimal places, on the Effective Date the Fund will execute a share split with the goal of establishing a $1.00 per share net asset value."
State Street says, "The Fund expects that these changes will become effective on or about March 7, 2025. As of the Effective Date, all references to the Fund will be updated to reflect its operations as a government money market fund. On the Effective Date, the Fund’s Summary Prospectuses, Prospectuses and SAIs are revised as follows: All references to the State Street Money Market Portfolio will be replaced with the State Street U.S. Government Money Market Portfolio. All references to the State Street Institutional Liquid Reserves Fund will be replaced with the State Street Institutional Liquid Reserves Government Money Market Fund."
For more, see these Crane Data News pieces: "Bloomberg, ignites on Latest MMF Reforms; Prime Inst Shift a Nonevent" (10/3/24), "Sept. MFI: Sticking with Prime Inst; MMFs Hit Record; Sweeps Scrutiny" (9/9/24), "SSGA Sticks w/Prime Inst Money Funds; Discusses Reforms; Benchmarks" (8/29/24), "Prime Inst Exits Take Effect: Allspring, DWS, UBS; NY Fed RRP Updates" (8/27/24), "First American Inst Prime Obligations to Invest Solely in Liquid Assets" (7/23/24), "Schwab, JPM, Meeder Announce Prime Inst Conversions to Government" (7/18/24), "Invesco Files to Liquidate Prime Inst MMFs; UBS MF Converting to Retail" (6/13/24), "BlackRock Liquidates TempFund, LEAF" (6/10/24) and "Federated Hermes Merging Prime Inst Money Funds; Prime Value To POF" (6/6/24).
See also: "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).
In other news, Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of Jan. 24) includes Holdings information from 75 money funds (up 15 from a week ago), or $4.098 trillion (up from $3.587 trillion) of the $7.201 trillion in total money fund assets (or 56.9%) tracked by Crane Data. (Note: Our Weekly MFPH are e-mail only and aren't available on the website. See our latest Monthly Money Fund Portfolio Holdings here and our Jan. 13 News, "January Money Fund Portfolio Holdings: Repo Surges, Treasuries Slide.")
Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $1.954 trillion (up from $1.813 trillion a week ago), or 47.7%; Repurchase Agreements (Repo) totaling $1.355 trillion (up from $1.172 trillion a week ago), or 33.1%, and Government Agency securities totaling $355.1 billion (up from $312.2 billion), or 8.7%. Commercial Paper (CP) totaled $169.1 billion (up from a week ago at $118.6 billion), or 4.1%. Certificates of Deposit (CDs) totaled $104.5 billion (up from $62.9 billion a week ago), or 2.5%. The Other category accounted for $108.4 billion or 2.6%, while VRDNs accounted for $51.9 billion, or 1.3%.
The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.954 trillion (47.7% of total holdings), Fixed Income Clearing Corp with $439.2B (10.7%), the Federal Home Loan Bank with $230.9 billion (5.6%), JP Morgan with $98.4B (2.4%), Citi with $93.2B (2.3%), BNP Paribas with $87.4B (2.1%), Federal Farm Credit Bank with $87.2B (2.1%), RBC with $76.2B (1.9%), Bank of America with $57.6B (1.4%) and Barclays PLC with $51.2B (1.2%).
The Ten Largest Funds tracked in our latest Weekly include: JPMorgan US Govt MM ($306.1B), Goldman Sachs FS Govt ($259.0B), JPMorgan 100% US Treas MMkt ($245.0B), Fidelity Inv MM: Govt Port ($221.5B), Morgan Stanley Inst Liq Govt ($184.6B), Federated Hermes Govt ObI ($173.7B), BlackRock Lq FedFund ($168.0B), State Street Inst US Govt ($165.8B), BlackRock Lq Treas Tr ($154.9B) and Fidelity Inv MM: MM Port ($149.9B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)
