Transamerica MMF Goes Govt
Transamerica filed with the SEC to convert its $141 million Transamerica Money Market Fund from Prime to Government. The filing says, "In response to recent amendments to Rule 2a-7 under the Investment Company Act of 1940 passed by the Securities and Exchange Commission, the Board of Trustees of Transamerica Funds has approved changes to the Fund's investment objective and principal investment strategies that will allow the Fund to operate as a "government money market fund". Under amended Rule 2a-7, a government money market fund is a money market fund that invests at least 99.5% of its total assets in U.S. government securities, cash, and/or repurchase agreement that are fully collateralized by U.S. government securities or cash. The Fund's operation as a government money market fund will result in shareholders having continued access to a money market fund which seeks to maintain a stable net asset value of $1.00 per share. As a government money market fund, the Fund may allow retail and institutional investors in the Fund. Additionally, the Fund will not be required to impose liquidity fees and/or redemption gates, and has no current intention to voluntarily impose such liquidity fees or redemption gates. However, the Board of Trustees reserves the right to impose liquidity fees and/or redemption gates in the future. Effective on or about May 1, 2016: The Fund's name will change to Transamerica Government Money Market." To date, Crane Data estimates that $263.8 billion has either already switched from Prime to Government, or has declared its intention to do so. Also, SEI liquidated the "H" shares of its SEI Prime Obligations Fund and merged them into their "A" shares. This filing says, "In a September 4, 2015 supplement to the Prospectus and SAI, the Fund provided notice that the conversion of Class H Shares of the Fund to Class A Shares of the Fund would be postponed until further notice. The conversion was originally approved at a meeting of the Board of Trustees of the Fund held on June 22-23, 2015. Recently, however, the Fund has determined to proceed with the conversion. Accordingly, effective on or about the close of business on November 30, 2015, all Class H Shares of the Fund will automatically convert to Class A Shares of the Fund. The share conversion should not have any effect on your investment in the Fund.” Finally, BMO Prime Money Market Fund changed its "I" shares to "Premier" shares. (See the filing here.)
