Old Mutual, and sub-adviser Dwight Asset Management, have filed to launch two Institutional classes of new money market funds, Old Mutual Government Money Fund and Old Mutual Treasury Fund. (We learned of this latest filing from ignites.com.) We first discussed the South African financial giant and its Burlington, Vt.-based stable value subsidiary's pending push into the U.S. institutional money fund marketplace last July. See our previous "Crane Data News" stories on this topic -- July 18, 2009's, "More on Old Mutual and Dwight Asset Management's Move Into Cash" and July 10, 2009's "Neuberger Retreats From Taxable Money Funds, Outsources to SSgA". See too our "People News from July 7, 2009, "Donohue, Robey, Hiatt at Dwight,," and Feb. 2, 2010, "Christine Trulby Joins Dwight."
The March 15 SEC filing says, "Old Mutual Funds II offers a convenient and economical means of investing in professionally managed portfolios of securities, called mutual funds. This Prospectus offers Institutional Class shares of Old Mutual Government Money Fund and Old Mutual Treasury Fund. Shares of other retail mutual funds advised by Old Mutual Capital, Inc. are offered by separate prospectuses.... Old Mutual Capital, Inc. is the investment manager to each Fund. The Adviser has retained Dwight Asset Management Company LLC to assist in managing the Funds."
The prospectus continues, "Institutional Class shares are available to the following categories of eligible investors and require a minimum initial investment of $1 million in a Fund: A bank, trust company, or other type of depository institution purchasing shares for its own account; An insurance company, registered investment company, endowment, or foundation purchasing shares for its own account; Pension or profit sharing plans or the custodian for such a plan; and Qualified or non-qualified employee benefit plans.... Eligible investors may purchase Institutional Class shares with a minimum initial investment of $100,000 in a Fund provided they sign a LOI, committing them to increase that investment to a minimum investment of $1 million in that Fund within twelve months."
Our July Crane Data story on Dwight quoted David Thompson, Dwight's president & CEO, "[T]he cash management team will enhance Dwight's focus on preserving wealth for 401(k) participants, currently managed via stable value portfolios." He added, "We believe stable value and cash management are complementary disciplines, and the expertise and experience represented by John Donohue's team should significantly benefit our clients."
