Weitz Govt MMF Going Ultra-Short
Though the money fund reform date of Oct. 14 has passed, changes continue in the space. The latest Prospectus Supplement announcing a change is from Weitz Government Money Market Fund. It says, "This Supplement provides information regarding certain proposed changes to the Fund to be effective as of December 16, 2016.... As of the Effective Date, it is proposed that the name, investment policy and principal investment strategies of the Fund will be changed in connection with the determination by Weitz Investment Management, Inc. (to no longer operate the Fund as a "government money market fund" as that term is defined under Rule 2a-7 of the Investment Company Act of 1940, as amended. It is currently proposed that as of the Effective Date, the following changes will occur: ... The name of the Fund will change from the "Government Money Market Fund" to the "Ultra Short Government Fund". In accordance with provisions of Rule 2a-7 under the 1940 Act with respect to "government money market funds", the Fund currently has a policy to invest at least 99.5% of its total assets in cash, U.S. Government securities and/or repurchase agreements that are collateralized fully.... In connection with the Adviser's determination to no longer operate the Fund as a "government money market fund" under Rule 2a-7, the Current Investment Policy will be replaced with a new investment policy pursuant to which the Fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in debt obligations issued or guaranteed by the U.S. Government, its agencies and instrumentalities and repurchase agreements on such securities.... Under "Elimination of Fixed Net Asset Value of $1.00 Per Share," it says, "Because the Fund will no longer operate as a money market fund in compliance with Rule 2a-7 under the 1940 Act as of the Effective Date, the Fund will no longer seek to maintain a stable net asset value of $1.00 per share. As of the Effective Date, the Fund will implement a reverse stock split pursuant to which its net asset value will be set at $10.00 per share and the Fund’s net asset value will be expected to fluctuate thereafter."
