Several more mutual fund complexes have filed to liquidate minor money market mutual funds according to Strategic Insight's Fund Filing and the SEC's EDGAR database. The former reported late last week that Alger Money Market Fund, HSBC Investors CA Tax-Free Money Market Fund, and Pioneer Tax-Free Money Market Fund will all liquidate in coming months. Crane Data also received word that the BB&T Funds will be changing their name to the Sterling Capital Funds on Feb. 1. We've also begun seeing the first disclosures of "Form N-MFP," which contains the "shadow" NAVs of funds from Nov. 30. So far, almost all the "shadow" NAVs we've seen are 1.000 or higher, though we have seen just a handful of 0.9999 entries and one 0.998x entry.
The Alger Money Market Fund filing says, "The Board of Trustees of the Trust has also approved liquidation of each of Alger Convertible Fund and Alger Money Market Fund. After the close of trading on the New York Stock Exchange on January 27, 2011, the Funds will be closed to further investment, excluding reinvestment of any dividends and distributions. Additionally, Convertible Fund will begin to sell its portfolio holdings and invest all of its assets in cash or cash equivalents (such as commercial paper or money market instruments). It is anticipated that the Funds' assets will be distributed to investors on or about February 28, 2011."
The filing adds, "Shareholders may choose to exchange their shares of the Funds for shares of another of the Alger Family of Funds prior to the Funds' liquidation. Exchange or liquidation of shares may be a taxable event to shareholders. Investors are urged to consult their own tax advisers as to the federal, state, and local tax consequences of the liquidations." Note that Crane Data does not track Alger MMF due to its very small size ($31 million).
The filing for the $46 million HSBC CA Tax-Free MMF says, "On December 7, 2010, the Board of Trustees of HSBC Investor Funds authorized HSBC Global Asset Management (USA), Inc., the investment adviser of the HSBC Investor California Tax-Free Money Market Fund, to take steps towards the liquidation of the Fund. The Adviser expects that the Fund will be liquidated on or about March 15, 2011. On or before the Liquidation Date, all portfolio securities of the Fund will be converted to cash or cash equivalents, and the Fund will cease investing its assets in accordance with the stated investment policies. The Fund will promptly wind up its business and affairs.... A shareholder may voluntarily redeem his or her shares prior to the Liquidation Date to the extent that the shareholder wishes to do so. The Fund no longer sells shares to new investors, including through exchanges into the Fund from other funds of HSBC Investor Funds. Investors may continue to redeem shares of the Fund. Once the Fund has been liquidated, all references to the Fund are deleted from this Prospectus."
The $45 million Pioneer Tax Exempt MMF filing says, "The trustees of the fund have authorized the liquidation of the fund. It is anticipated that the fund will be liquidated on or about March 25, 2011. Effective February 1, 2011, the fund will not accept purchase requests to establish new accounts in the fund. The fund will accept purchase requests for existing accounts until the Liquidation Date."
The BB&T Funds, the 52nd largest money fund manager with $1.05 billion, will be "rebranded to the Sterling Capital Funds" on Feb. 1, according to a notice sent to fund reporters. A previous BB&T filing said, "Effective immediately, Sterling Capital Management LLC (“Sterling Capital”) replaces BB&T Asset Management, Inc. as the investment adviser and administrator to the BB&T Funds (the “Funds”). References in the Prospectuses to “BB&T Asset Management, Inc.” and “BB&T Asset Management” are replaced with “Sterling Capital Management LLC” and “Sterling Capital”, respectively."
The BB&T website comments, "We are pleased to announce that effective October 1, 2010 BB&T Asset Management (former advisor to the BB&T Funds) was consolidated and merged into Sterling Capital Management LLC. The combined organization will operate as Sterling Capital Management LLC and is the newly named advisor to the BB&T Funds."
Finally, watch for more details on the SEC's postings of the new Form N-MFP. (Check the EDGAR Search Page, enter a fund Symbol or name, and look for "Form N-MFP" to access. Shadow NAVs are item number 25 in the filing.) Crane Data is in the process of adding these "shadow" NAVs and some other information from Form N-MFP to this month's `Money Fund Intelligence XLS, so subscribers should look for our full listing there.
