A $280-billion AUM, multinational asset manager is preparing to shutter one money fund while keeping another one going. And it's all "in response to amendments to regulations governing money market mutual funds."

Michael Lee RBC Global Asset Management Chief Executive Officer, Chief Investment Officer

Mike Lee, CEO and chief investment officer of RBC Global Asset Management - U.S. [profile], confirms that his team plans to stop offering its $7.9-billion, U.S. Prime Money Market Fund to investors after September 30, 2016 (two weeks before the new regulations take effect). The date for closing the fund to new investments is still TBD.

"We're no longer going to offer a prime fund," John Donohue, managing director and head of liquidity management, tells MFWire.

Yet, Lee confirms that RBC will keep its $6.6-billion U.S. Government Money Market Fund going.

"RBC Global Asset Management has a long history of offering liquidity and fixed income strategies as part of our investment platform," Lee states. "Following close consultation and discussion with our clients, we feel that our lineup of cash management options is well positioned to serve the long term interests of investors as they navigate these changes." 

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