UBS Global Asset Management (Americas) Inc. announces policies recently adopted by certain of its money market funds & provid...
11 June 2015 - 7:05AM
Business Wire
UBS Global Asset Management (Americas) Inc. ("UBS Global Asset
Management") today announced policies recently adopted by certain
of its money market funds and provided additional information
regarding other liquidity management products it expects to offer.
UBS Global Asset Management and its affiliates/predecessors have
managed money market funds for more than 35 years and today offer
client focused solutions throughout the world.
In 2014, the US Securities and Exchange Commission ("SEC")
changed the regulations governing all SEC registered money market
funds. The changes impact key aspects of how money market funds are
structured and operate. The regulatory changes have a tiered
compliance period that extends until October 2016, and UBS Global
Asset Management understands that many of its clients are preparing
for the impact of these changes.
Today's announcement relates to policies that allow the funds
listed below to qualify as "government money market funds" under
the new SEC regulations, permitting them to continue operating with
the goal of maintaining a stable net asset value per share without
the imposition of liquidity fees and redemption gates:
- UBS RMA U.S. Government Portfolio,
- UBS Select Treasury Institutional
Fund,
- UBS Select Treasury Preferred
Fund,
- UBS Select Treasury Capital Fund,
and
- UBS Select Treasury Investor Fund
As described in more detail in prospectus supplements filed with
the SEC earlier today, each of these funds has adopted a
non-fundamental investment policy—effective June 10, 2015—requiring
it to invest 99.5% or more of its total assets in cash, government
securities, and/or repurchase agreements that are backed by US
government/Treasury securities and/or cash.
This new policy—required under SEC regulations—is in addition to
a fund's other investment policies (e.g., the policy of the
Treasury funds to focus investments in Treasury securities and
repurchase agreements backed by Treasuries). It should be noted
that this new policy does not result in a material change in how
the funds have been managed but reflects a further risk-limiting
"99.5%" regulatory test.
These changes were approved by the appropriate fund boards on
the recommendation of UBS Global Asset Management after
consultation with investors and distribution partners. As part of
adopting this new policy, each fund's board also determined that
the fund will continue to use the amortized cost method of
valuation to seek to maintain a $1.00 share price and that the fund
will not be subject to a liquidity fee and/or a redemption gate on
fund redemptions (unless a fund board determines otherwise in the
future after providing the requisite advance notice to shareholders
as set forth in the SEC's regulations).
UBS Global Asset Management is working to ensure that its
products, systems and processes will be compliant with the new SEC
regulations governing money market funds before the compliance
deadlines and meeting the funds' goals of safety, liquidity and
income. UBS Global Asset Management currently expects to offer the
following investment solutions to assist clients in managing their
liquidity needs, including, but not limited to:
- Constant net asset value (“CNAV”)
Treasury and government money market funds;
- Constant net asset value (“CNAV”)
retail prime and municipal money market funds;
- Floating net asset value (“FNAV”)
institutional prime money market funds;
- Privately placed, unregistered
fund(s);
- Ultra-short bond fund(s); and
- Customized separate account
solutions
UBS Global Asset Management expects that it (or the funds it
advises) will make further announcements and incorporate additional
disclosure upon the finalization of more detailed, specific plans
for its prime and municipal SEC registered money market funds.
About UBS Global Asset Management
UBS Global Asset Management (Americas) Inc. had approximately
$153.6 billion in asset under management, including $69 billion in
liquidity management assets as of March 31, 2015. It is a member of
the UBS Global Asset Management Division, which had approximately
$679.8 billion in assets under management, including nearly $100
billion in liquidity management assets as of March 31, 2015.
The UBS Global Asset Management division is a large-scale asset
manager with well-diversified businesses across regions,
capabilities and distribution channels. The firm offers investment
capabilities and investment styles across all major traditional and
alternative asset classes. These include equity, fixed income,
currency, hedge fund, real estate, infrastructure and private
equity investment capabilities that can also be combined in
multi-asset strategies.
UBS Group draws on its over 150-year heritage to serve private,
institutional and corporate clients worldwide, as well as retail
clients in Switzerland. Its business strategy is centered on its
pre-eminent global wealth management businesses and its leading
universal bank in Switzerland, complemented by its Global Asset
Management business and its Investment Bank, with a focus on
capital efficiency and businesses that offer a superior structural
growth and profitability outlook.
Investors should consider the investment objectives, risks,
charges, and expenses of a mutual fund carefully before investing.
Visit www.ubs.com/usmoneymarketfundsholdings to
download a prospectus that contains this and other information
about a money market fund, and read it carefully before
investing.
An investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. Although a money market fund seeks to
preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in a money market fund.
Not FDIC insured. May lose value. No bank guarantee.
This press release contains certain statements that may
include forward-looking statements. All statements, other than
statements of historical fact, included herein are forward-looking
statements. The forward-looking statements are based on UBS Global
Asset Management's beliefs, assumptions and expectations taking
into account information currently available to it. These beliefs,
assumptions and expectations can change as a result of many
possible events or factors, not all of which are known to UBS
Global AM or are within its control. UBS Global Asset Management
does not undertake any obligation to update any forward-looking
statements to reflect circumstances or events that occur after the
date on which such statements were made except as required by
law.
ubs.com
©UBS 2015. All rights reserved.
The key symbol and UBS are among the registered and unregistered
trademarks of UBS.
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UBS Global Asset ManagementGregg Rosenberg, 212-713-8842
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