TCW Money Market Fund, an $88 million fund which at one point had grown to over $2 billion (in mid-2008), is the latest money market fund to withdraw from the money fund space. The letter to shareholders announcing the exit says, "Given the current yield environment, the Board of Directors of the TCW Funds, Inc., has decided to liquidate the TCW Money Market Fund (cusip: 87234N864, Ticker: TCWXX) on or about May 31, 2012. Effective May 25, 2012, in preparation for the termination of the TCW MMF, the TCW MMF will no longer accept new purchases, contributions, or exchanges."
It explains, "In the event that you hold shares in the TCW MMF as of May 31, 2012, and you have not requested a redemption of those shares, an involuntary redemption of your account will occur on or about that date. In the event of an involuntary redemption, TCW will mail a check to you in early June 2012 in the amount of your liquidating account balance. For inquiries regarding the liquidation of the Fund, you may contact your broker or TCW’s shareholder services unit at 800-FUND TCW (800-386-3829). Of course, you may liquidate your shares in the TCW MMF on any trading day through the termination date of the TCW MMF, and your redemption will be handled in the customary manner."
TCW is the 74th largest manager of money market mutual funds (out of 77 total) tracked by Crane Data's Money Fund Intelligence XLS. TCW's money fund assets have declined by since peaking at $2.3 trillion in April 2008. The fund had shrunk to $733 million by the end of 2008 and to $121 million by the end of 2010.
In other consolidation news, Dreyfus Basic US Govt MMF (DBGXX) also recently filed to liquidate. The Prospectus supplement says, "The Board of Trustees of Dreyfus BASIC U.S. Government Money Market Fund has approved the liquidation of the Fund, effective on or about April 11, 2012. Accordingly, effective on or about February 22, 2012, no new or subsequent investments in the Fund will be permitted, except that subsequent investments will be permitted until the Liquidation Date when made (i) in any Fund accounts that are in existence as of February 22, 2012 and that serve as "sweep accounts", (ii) by participants in group retirement plans (and their successor plans) if the Fund was established as an investment option under the plans before February 22, 2012, or (iii) pursuant to the Fund's automatic investment plans and dividend reinvestment."
The filing explains, "In addition, effective on or about February 22, 2012, the Fund's transaction fees that are applicable to redemptions and exchanges of Fund shares held in accounts with balances below $50,000 will be waived on any redemption or exchange of Fund shares. Please note that checks presented for payment to the Fund's transfer agent pursuant to the Fund's Checkwriting Privilege after the Fund’s liquidation will not be honored. Fund shares held on the Liquidation Date in Dreyfus-sponsored Individual Retirement Accounts and Dreyfus-sponsored retirement plans will be exchanged for shares of Dreyfus Worldwide Dollar Money Market Fund, Inc., except that Fund shares held on the Liquidation Date in Dreyfus-sponsored 403(b)(7) plans will be exchanged for Class 1 shares of Dreyfus Liquid Assets, Inc., to avoid penalties that may be imposed on holders of IRAs and retirement plans under the Internal Revenue Code if their Fund shares were redeemed in cash. Investors may obtain a copy of the Prospectus of DWWD or DLA by calling 1-800-DREYFUS."
