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Monday, August 15, 2011|
American Beacon Plans to Shutter a Money Market Fund
American Beacon [see profile] is pulling the plug on one of its money market funds. Heading toward liquidation is the American Beacon Money Market Mileage Fund, which is closed to new investors effective immediately and will stop accepting purchases from current shareholders effective August 22. [ SEC filing]
The fund, which has roughly $25 million of AUM, will liquidate on or about September 30.
"Given the extended low rate environment which will likely continue until 2013, we have decided to no longer subsidize the cost of the fund. The assets in the fund were too small to justify maintaining this subsidy for an extended period," wrote American Beacon executive chairman Bill Quinn in e-mailed comments to The MFWire.com.
The Mileage Fund was aimed at investors that wanted to accrue AAdvantage Miles, crediting AAdvantage miles each month at an annualized rate of one mile for every $10 in the fund. Qualified retirement plans and institutional investors were not eligible to invest in the fund.
Printed from: MFWire.com/story.asp?s=37582
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