Reich & Tang is to liquidate its money market mutual funds as part of the firm’s corporate strategy. The liquidation, which represents approximately USD9.5 billion in shareholder assets, is expected to complete by 31 July, 2015.
After more than four decades Reich & Tang is moving away from its investment management business.
“Our newest chapter is written,” says 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.”