The nascent trend of consolidation among fringe players in the money market mutual fund business continues as the Monarch Funds prepares to liquidate. The Monarch Funds, the $451 million, 81st largest money fund manager (out of 89) according to our monthly Money Fund Intelligence XLS, discontinued its Monarch Daily Assets Government and Monarch Daily Assets Treasury Funds last month, becoming the first Treasury and Government funds to succumb to ultra-low interest rates.
The Monarch Funds are advised by Monarch Investment Advisors, a "privately owned company controlled by Anthony R. "Tim" Fischer, Jr. and Jack Singer. Portfolio Manager Fischer tells Crane Data that it was time to move on and that the company's assets were sold to Federated Investors.
The prospectus supplement says, "On December 12, 2008, the Board of Trustees of the Monarch Funds approved a plan to liquidate and terminate the Daily Assets Government Fund and Daily Assets Treasury Fund, upon recommendation of Monarch Investment Advisors, LLC, the manager to the Portfolios. The Board determined that the liquidation and termination of the Portfolios was in the best interests of shareholders due primarily to anticipated redemptions by certain shareholders, which were expected to render the Portfolios' fees uncompetitive." (Comerica Bank is listed as owning 47% of the Daily Assets Cash Fund in the latest Statement of Additional Information.)
It continues, "Pursuant to the Plan, the Portfolios are liquidating their assets and distributing cash pro rata to all shareholders who have not previously redeemed or exchanged all of their shares of the Portfolios. The liquidation of the Portfolios and distribution of assets to shareholders is expected to be completed on or about February 27, 2009. Once the distribution is complete, the Portfolios will terminate."
In other news, Arrowhead Money Market, advised by Luminent Capital Management, is preparing for launch according to recent fund filings. Barry Weiss, who formerly co-managed money funds at Oppenheimer Funds, and Andrew Tikofsky, will manage the new fund, which has a minimum initial investment of $1 million and an expense ratio of 0.70%.
