SEI Keeps BlackRock as Sub-Adviser
SEI filed with the SEC to change the sub-adviser for its money market funds -- Money Market, Prime Obligations, Government, Government II, Ultra-Short Duration Bond, Short Duration Government, and GNMA funds -- from BofA to BlackRock. It says, "Under the heading titled "The-Sub-Advisers," under the section titled "The Adviser and Sub-Advisers," the text relating to BofA Advisors, LLC is hereby deleted and replaced with the following: Blackrock Advisors, LLC -- BlackRock Advisors, LLC ("BAL") serves as a Sub-Adviser to a portion of the assets of each of the Money Market, Prime Obligation, Government, Government II, Treasury and Treasury II Funds.” However, as we reported in our March 29 News, "Another Two Bite the Dust: SEI Liquidates Prime; Wilmington Goes Govt," SEI is liquidating both Prime Obligations and Money Market Fund on June 24. (See the SEC filing for details.) In related news, a press release entitled, "Moody's Affirms Aaa-mf Ratings of Four BlackRock Money Market Funds Following Merger with BofA Funds," says, "Moody's Investors Service today affirmed the Aaa-mf ratings of the following four money market funds managed by BlackRock Asset Management: BlackRock TempFund, BlackRock FedFund, BlackRock T-Fund, BlackRock Federal Trust Fund. Moody's also withdrew the Aaa-mf ratings of the following four money market funds managed by BofA Global Capital Management: Government Plus Reserves, Government Reserves, Money Market Reserves and Treasury Reserves, which merged into the aforementioned BlackRock Funds. The rating action follows BlackRock's 18 April 2016 announcement of the funds' mergers and the reorganization of its fund lineup. The rating affirmations reflect Moody's expectation that, following the fund mergers, the surviving fund portfolios will continue to maintain credit and stability profiles consistent with a Aaa-mf rating. The investment strategy of the surviving BlackRock Funds will remain the same as prior to the merger. The Aaa-mf ratings reflect Moody's view that the funds will have a very strong ability to meet the dual objectives of providing liquidity and preserving capital. The fund reorganizations were approved by both fund boards, fund shareholders and regulators. BofA Funds's shareholders were requested to elect between redeeming their shares of the BofA Funds or receiving new shares in the BlackRock Funds. On 18 April 2016, the net assets of the BofA Funds were merged into the BlackRock Funds, and the BofA Funds closed. The total amount of the net assets transferred from the BofA Funds to the BlackRock Funds was $39 billion. BofA Cash Reserves ($7.6B) and BofA Money Market Reserves ($15.9B) merged into BlackRock TempFund ($55.5B); BofA Government Plus Reserves ($1.8B) merged into BlackRock FedFund ($13.5B); BofA Government Reserves ($3.8B) merged into BlackRock Federal Trust Fund ($314M); and, BofA Treasury Reserves ($9.8B) merged into BlackRock T-Fund ($21.6B). All figures are as of 15 April 2016."
