UBS Asset Management makes changes to money market fund platform
UBS Asset Management (Americas) Inc. ("UBS AM") and its affiliates/predecessors have managed money market funds for more than 35 years and offer client-focused solutions throughout the world.
In an effort to best address its clients' needs in an era of evolving regulatory reform and industry changes, UBS AM is making changes to its money market fund platform, including the launch of new products.
As part of the shake up, the UBS Select Prime Funds, with a largely institutional ('non-natural persons') shareholder base, will adopt floating net asset value (FNAV) pricing by an October 2016 regulatory compliance deadline.
The UBS Prime Funds meanwhile, a recently launched retail money market family of funds, will accept investments from retail investors ('natural persons') and seek to maintain a constant net asset value (CNAV) per share of USD1.00.
In addition the UBS Select Tax-Free Funds intend to qualify as 'retail money market funds' and will also undergo a name change later in 2016; and the UBS Select Treasury Funds affirmed their intention, announced in June 2015, to qualify as 'government money market funds' so that they can continue to seek to maintain a CNAV per share of USD1.00 once the regulatory changes become fully effective in October 2016.
Later this year UBS plans to launch the UBS The UBS Select Government Funds, a suite of government money market funds that will complement the existing UBS Select Treasury Funds. These new funds will accept investments from all investors ('natural' and 'non-natural persons') and seek to maintain a CNAV per share of USD1.00.
UBS is also planning to reduce the initial minimum investment requirement of the the UBS Investor Series from USD100,000 to USD10,000, while UBS AM's sweep money market funds, available via UBS Financial Services' automatic cash 'sweep platform,' will undergo changes later in 2016. Some funds may no longer be offered on cash sweep platforms, and shareholders may be transitioned to alternate money market fund products.
"The changes we announced today and the expansion of our money market fund platform are designed to ensure that all our clients continue to have access to UBS Asset Management's deep capabilities in liquidity management," says Joe Abed, Head of Global Liquidity for UBS Asset Management.
"Evolving our global liquidity product offering in the US is a critical component of UBS Asset Management's growth strategy in the Americas," says Blake Moore (pictured), Head of the Americas for UBS Asset Management. "With over USD40 billion in US money market assets and almost USD99 billion in liquidity products globally as of 30 September, 2015, we continue to offer our clients a broad range of investment products to meet their liquidity needs."