AB Govt MM Port Breaks $9 Billion
A press release put out Tuesday, entitled, "AB Government Money Market Portfolio Celebrates Significant Growth in 2019" and subtitled, "AB Fund Grew by Nearly $2.3 Billion in First Quarter of 2019," tells us, "AllianceBernstein L.P. (AB), a leading investment management and research firm, announced today that the AB Government Money Market Portfolio (GMOXX) has achieved a significant milestone, and at the end of the quarter reported growth of 25 percent or an increase of $2.3 billion, raising the assets of the fund to $9.055 billion as of March 31, 2019. The Government Money Market Portfolio, which has an inception date of June 1, 2016, is designed to create maximum current income while consistently offering the safety of maintaining principal and liquidity. The portfolio provides income in the form of a dividend that generally reflects short-term interest rates, which is accrued daily and paid out monthly. The portfolio currently invests in U.S. government securities and/or repurchase agreements related to government securities that are fully collateralized alongside cash." Zachary Green, Global Head of Liquidity Sales at AB, comments, "With management fees being scrutinized more than ever before, corporate cash managers are also becoming wiser to the rights of set-off risk their companies may be exposed to with bank-sponsored funds. They are rightly looking to identify diversified options that balance net performance, cost, and diversification away from banking relationship that may have become 'too concentrated' over the past few years.... Our flagship Government Money Market Portfolio has successfully offered investors diversification, stability, liquidity and a solution that ensures they are not overly dependent on a single banking relationship. These are all factors that have become even more critical for those seeking better returns and stability in their asset allocation in today's volatile market environment."
