NEW YORK--(BUSINESS WIRE)--Reich & Tang today announced that as a part of its focused corporate strategy, it has received its fund boards’ approvals to liquidate its money market mutual funds. The liquidation, which represents approximately $9.5 billion in shareholder assets, is expected to complete by July 31, 2015.
After more than four decades Reich & Tang is moving away from its investment management business. “Our newest chapter is written,” said Michael Lydon, Reich & Tang’s President and Chief Executive Officer. “Given the ongoing regulatory changes that are being added to the already challenging landscape for money funds, the ability for mid-tier money fund sponsor firms to thrive becomes significantly diminished. It is our responsibility to ensure that shareholders’ best interests are being served at all times, and our process over the next few months will better help shareholders to stay that course.”
In shedding the investment management business, the firm will focus on growing its successful FDIC-insured sweep programs that provide valuable solutions to banks, trusts, brokerages, RIA’s, and other private and public investment programs. Lydon adds, “The company was built on its expertise in cash management and this fine-tuning of our product line is a direct result of our ability to adapt our business to meet the needs of our customer base. This foundation of more than 40 years’ experience has helped us to uncover further opportunities to grow relationships through our leading FDIC-insured sweep and funding programs, areas that will be our focus going forward.”
Reich & Tang is nationally recognized as a competitive provider of funding for banks as well as having one of the longest track records in extended FDIC-insured sweep programs in the bank and brokerage spaces. “The streamlining of our operations with our FDIC programs enables Reich & Tang to invest all of its resources into these programs and carve deeper into its niche as an expert in the deposit, liquidity, and short-term capital markets,” concluded Lydon.
Reich & Tang is an affiliate of Natixis Global Asset Management, one of the world’s largest asset managers with $890 billion in assets under management as of December 31, 2014.
About Reich & Tang
Reich & Tang Asset Management, LLC (Reich & Tang) is one of the nation’s largest firms dedicated solely to offering deposit and liquidity solutions to financial intermediaries and public and private investment entities. The firm is focused on creating, improving, and delivering smarter ideas to help banks, brokerages, trust managers, RIAs, and public and private sector clients maximize the value of their deposit, liquidity, and short-term investment programs. This singular focus across multiple business lines combines to form a unique perspective and expertise that provides a deeper insight into the multiple disciplines of cash management. Reich & Tang is an affiliate of Natixis Global Asset Management.