Putnam Liquidates Tax-Exempt MF
We learned through mutual fund publication Fund Action that Putnam Investments has decided to liquidate its $39 million Putnam Tax-Exempt Money Market Fund. The SEC filing says, "At a meeting held on January 29, 2016, the Board of Trustees of Putnam Tax Exempt Money Market Fund approved a plan to liquidate the Fund upon recommendation by Putnam Investment Management, LLC, the Fund's investment adviser. The liquidation of the Fund is expected to occur on or about March 23, 2016. Effective as of February 12, 2016, the Fund will be closed to new purchases, other than the reinvestment of dividends, in anticipation of the liquidation. Shareholders can redeem their shares from the Fund at any time on or before the close of business on March 23, 2016 at the then-current net asset value. On the Liquidation Date, the Fund will liquidate its remaining assets and distribute cash pro rata to all remaining shareholders as of the Record Date, after the payment of (or provision for) all charges, taxes, expenses and liabilities, whether due or accrued or anticipated of the Fund, who have not previously redeemed all of their shares or exchanged their Fund shares of another Putnam fund." Also, two share classes of Milestone Treasury Obligations Fund will be merged into the fund's Institutional share class, according to a separate SEC filing. It explains, "On October 15, 2015, the Board of Trustees of AdvisorOne Funds approved the conversion of all outstanding Premium Class and Financial Class Shares of the Milestone Treasury Obligations Fund to Institutional Class shares of the Fund on December 1, 2015. On the Conversion Date, each holder of Premium Class or Financial Class shares will receive a number of Institutional Class shares equal in value to the Premium Class or Financial Class shares owned by that shareholder, and all outstanding Premium Institutional Class and Financial Class shares will be canceled. Premium Class or Financial Class shareholders who become Institutional Class shareholders as a result of the Conversion will maintain their investment in the Fund. Premium Class shareholders' shareholder servicing fees will decrease from a maximum of 0.25% to a maximum of 0.10% as a result of the Conversion. Financial Class shareholders’ shareholder servicing fees will increase from a maximum of 0.05% to a maximum of 0.10% as a result of the Conversion." Finally, in other news, the Federal Reserve Bank of New York updated its "Reverse Repo Counterparties List" to include HSBC Prime Money Market Fund and HSBC US Government Money Market Fund managed by HSBC Global Asset Management. The additions are added to the list of reverse repo counterparties, effective February 2.
