UBS Global Asset Management (Americas) Inc. announces policies recently adopted by certain of its money market funds and provides information regarding other liquidity management products

NEW YORK--()--UBS Global Asset Management (Americas) Inc. ("UBS Global Asset Management") today announced policies recently adopted by certain of its money market funds and provided additional information regarding other liquidity management products it expects to offer. UBS Global Asset Management and its affiliates/predecessors have managed money market funds for more than 35 years and today offer client focused solutions throughout the world.

In 2014, the US Securities and Exchange Commission ("SEC") changed the regulations governing all SEC registered money market funds. The changes impact key aspects of how money market funds are structured and operate. The regulatory changes have a tiered compliance period that extends until October 2016, and UBS Global Asset Management understands that many of its clients are preparing for the impact of these changes.

Today's announcement relates to policies that allow the funds listed below to qualify as "government money market funds" under the new SEC regulations, permitting them to continue operating with the goal of maintaining a stable net asset value per share without the imposition of liquidity fees and redemption gates:

  • UBS RMA U.S. Government Portfolio,
  • UBS Select Treasury Institutional Fund,
  • UBS Select Treasury Preferred Fund,
  • UBS Select Treasury Capital Fund, and
  • UBS Select Treasury Investor Fund

As described in more detail in prospectus supplements filed with the SEC earlier today, each of these funds has adopted a non-fundamental investment policy—effective June 10, 2015—requiring it to invest 99.5% or more of its total assets in cash, government securities, and/or repurchase agreements that are backed by US government/Treasury securities and/or cash.

This new policy—required under SEC regulations—is in addition to a fund's other investment policies (e.g., the policy of the Treasury funds to focus investments in Treasury securities and repurchase agreements backed by Treasuries). It should be noted that this new policy does not result in a material change in how the funds have been managed but reflects a further risk-limiting "99.5%" regulatory test.

These changes were approved by the appropriate fund boards on the recommendation of UBS Global Asset Management after consultation with investors and distribution partners. As part of adopting this new policy, each fund's board also determined that the fund will continue to use the amortized cost method of valuation to seek to maintain a $1.00 share price and that the fund will not be subject to a liquidity fee and/or a redemption gate on fund redemptions (unless a fund board determines otherwise in the future after providing the requisite advance notice to shareholders as set forth in the SEC's regulations).

UBS Global Asset Management is working to ensure that its products, systems and processes will be compliant with the new SEC regulations governing money market funds before the compliance deadlines and meeting the funds' goals of safety, liquidity and income. UBS Global Asset Management currently expects to offer the following investment solutions to assist clients in managing their liquidity needs, including, but not limited to:

  • Constant net asset value (“CNAV”) Treasury and government money market funds;
  • Constant net asset value (“CNAV”) retail prime and municipal money market funds;
  • Floating net asset value (“FNAV”) institutional prime money market funds;
  • Privately placed, unregistered fund(s);
  • Ultra-short bond fund(s); and
  • Customized separate account solutions

UBS Global Asset Management expects that it (or the funds it advises) will make further announcements and incorporate additional disclosure upon the finalization of more detailed, specific plans for its prime and municipal SEC registered money market funds.

About UBS Global Asset Management

UBS Global Asset Management (Americas) Inc. had approximately $153.6 billion in asset under management, including $69 billion in liquidity management assets as of March 31, 2015. It is a member of the UBS Global Asset Management Division, which had approximately $679.8 billion in assets under management, including nearly $100 billion in liquidity management assets as of March 31, 2015.

The UBS Global Asset Management division is a large-scale asset manager with well-diversified businesses across regions, capabilities and distribution channels. The firm offers investment capabilities and investment styles across all major traditional and alternative asset classes. These include equity, fixed income, currency, hedge fund, real estate, infrastructure and private equity investment capabilities that can also be combined in multi-asset strategies.

UBS Group draws on its over 150-year heritage to serve private, institutional and corporate clients worldwide, as well as retail clients in Switzerland. Its business strategy is centered on its pre-eminent global wealth management businesses and its leading universal bank in Switzerland, complemented by its Global Asset Management business and its Investment Bank, with a focus on capital efficiency and businesses that offer a superior structural growth and profitability outlook.

Investors should consider the investment objectives, risks, charges, and expenses of a mutual fund carefully before investing. Visit www.ubs.com/usmoneymarketfundsholdings to download a prospectus that contains this and other information about a money market fund, and read it carefully before investing.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.

 
Not FDIC insured. May lose value. No bank guarantee.
 

This press release contains certain statements that may include forward-looking statements. All statements, other than statements of historical fact, included herein are forward-looking statements. The forward-looking statements are based on UBS Global Asset Management's beliefs, assumptions and expectations taking into account information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to UBS Global AM or are within its control. UBS Global Asset Management does not undertake any obligation to update any forward-looking statements to reflect circumstances or events that occur after the date on which such statements were made except as required by law.

ubs.com

©UBS 2015. All rights reserved.

The key symbol and UBS are among the registered and unregistered trademarks of UBS.

Contacts

UBS Global Asset Management
Gregg Rosenberg, 212-713-8842

Contacts

UBS Global Asset Management
Gregg Rosenberg, 212-713-8842