Bringing you live news and features since 2006 

TD Asset Management announces product strategy for money market funds

RELATED TOPICS​

TD Asset Management (TDAM) has announced plans to adjust its money fund lineup to address regulatory changes adopted by the US Securities and Exchange Commission (SEC) in July 2014. 

The adjustments will take effect on 14 October, 2016.  

In the government money market fund category, the following products will be offered: TDAM US Government Portfolio; TDAM Institutional US Government Fund; and TDAM Institutional Treasury Obligations Money Market Fund.

Under the SEC's new rules, a government money market fund must invest at least 99.5 per cent of its total assets in US government securities, cash, or repurchase agreements collateralised by US government securities or cash. Historically, TDAM has managed its government and Treasury funds consistent with this new requirement and will continue to do so. Government and Treasury money market funds are exempt from new requirements for liquidity fees and redemption gates, although they could voluntarily adopt fees and/or gates in the future upon prior notice to shareholders. TDAM does not intend to impose liquidity fees or redemption gates on any of its government or Treasury funds. Finally, government funds will continue to use the amortised cost method of valuation to transact at a stable net asset value (NAV) of USD1.00 per share. 

In the retail money market fund category, the following products will be offered: TDAM Money Market Portfolio; TDAM Municipal Portfolio; TDAM California Municipal Money Market Portfolio; and TDAM New York Municipal Money Market Portfolio.

Retail money market funds are defined under the new rules as funds that have policies and procedures reasonably designed to limit all beneficial owners to natural persons, whether investing directly or through an omnibus account held at a custodian. Retail money market funds will continue to transact at a stable NAV of USD1.00 per share, but will be subject to liquidity fees and redemption gates. 

Prime and municipal money market funds that are available to institutional investors must transact at a floating NAV and will be subject to liquidity fees and redemption gates.  TDAM will offer the following floating NAV products: TDAM Institutional Money Market Fund; and TDAM Institutional Municipal Money Market Fund.

Many of the changes will require approval from the funds' board of directors and disclosure in the funds' registration statements and will not take effect until the necessary approvals have been obtained and the disclosures have been filed. 

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by