DWS Liquidating Govt CR (BIRXX)
We learned from Bloomberg that the $212 million DWS Government Cash Reserves Fund Institutional (BIRXX) has filed to liquidate. A Prospectus Supplement explains, "Upon the recommendation of DWS Investment Management Americas, Inc., the investment advisor for DWS Government Cash Reserves Fund Institutional, a feeder fund of Government Cash Management Portfolio, the Board of Trustees of Deutsche DWS Money Market Trust has authorized, on behalf of the fund, the fund's termination and liquidation, which will be effective on or about January 22, 2021. Accordingly, the fund will redeem all of its outstanding shares on the Liquidation Date. The liquidation will be effected according to a Plan of Liquidation and Termination. The costs of the liquidation, including the notification to shareholders, will be borne by the fund, subject to any applicable voluntary or contractual undertaking, then in effect, by the Advisor to waive or reimburse certain operating expenses of the fund. Shareholders who elect to redeem their shares prior to the Liquidation Date will receive the net asset value per share (normally, $1.00) on such redemption date for all shares they redeem. Shareholders whose shares are redeemed automatically on the Liquidation Date will receive the net asset value per share (normally, $1.00) for all shares they own on the Liquidation Date. As the Liquidation Date approaches, the fund's assets not already converted to cash or cash equivalents will be converted to cash or cash equivalents and the fund will not be pursuing its investment objective." The filing adds, "The fund will be closed to new investors effective immediately. Retirement plans that currently offer the fund as an investment option may continue to offer the fund to their participants until the Liquidation Date and the fund will continue to accept subsequent investments and dividend reinvestments for existing accounts until the Liquidation Date, except that subsequent investments made by check or Automated Clearing House debit entries will no longer be accepted by the fund beginning two weeks prior to the Liquidation Date. Shareholders who redeem shares using the checkwriting redemption privilege offered by the fund are advised to stop using this privilege at least two weeks prior to the Liquidation Date to ensure that any redemption checks are presented to the fund for payment on or prior to the Liquidation Date since any such redemption checks presented to the fund after the Liquidation Date will not be honored." The fund also filed a Form N-CR, indicating a capital contribution, which states, "In anticipation of the liquidation of the Fund on or about 1/22/2021, DWS Investment Management Americas, Inc. is making a capital contribution to the Fund in the amount noted above [$283.2 thousand]. This amount will offset historical capital losses. The purpose of the capital contribution is to seek to ensure a $1.00 share price for shareholders upon liquidation." DWS is the 19th largest manager of money market funds with $33.6 billion. In mid-2016, the fund converted from a Prime MMF to a Govt MMF.
