In a press release issued late yesterday, Munder Capital Management, announced "that it plans to exit the money market mutual fund business because it is no longer central to the firm's core business strategy." According to last month's Money Fund Intelligence XLS, Munder ranked 72nd among 83 managers of money market funds. The company has about $2.6 billion in money funds, including its largest fund (and the only one tracked by Crane Data), the $1 billion Munder Instit MMF Comerica Y.
CEO John Adams says, "Our future focus is the continued development of our highly successful and growing domestic and international equity and fixed income capabilities and this is where we will be committing our investment and distribution resources. Since 2005, assets in these core businesses have grown 66% to $20.7 billion. While we will continue offering separately managed liquidity accounts for institutional investors, the money market mutual fund business requires a scale and focus no longer consistent with our long-term business goals and objectives." The release adds, "Munder Capital currently manages approximately $9 billion in cash products. The firm is committed to working closely with its Fund Board and shareholders to ensure a smooth and timely transition from the business."
A prospectus supplement adds, "The Munder Cash Investment Fund, Munder Tax-Free Money Market Fund, Institutional Money Market Fund and Liquidity Money Market Fund have been advised that Munder Capital Management, the Funds' investment adviser, plans to exit the money market mutual fund business.... In light of that decision, the Board of Trustees of each Fund has determined that liquidation and dissolution of the Fund is in the best interest of the Fund and its shareholders and, therefore, has approved a Plan of Liquidation for the Fund."
