NEW YORK NY, August 31, 2016 – Goldman Sachs Asset Management (“GSAM”) today announced that its Institutional Prime and Institutional Tax-Exempt Money Market Funds will begin transacting at a floating net asset value (“NAV”) on October 11, 2016, in advance of the Securities and Exchange Commission’s (“SEC’s”) Rule 2a-7 amendments scheduled to become effective on October 14, 2016.
Over the past 18 months, GSAM has engaged clients regarding the impacts of the changes to Rule 2a-7 and the related operational considerations surrounding floating NAV to better understand what product features and services solutions are most important to our clients.
Today, GSAM announced the following updates through filings with the SEC:
The effective floating NAV transition of our three Institutional Prime and Tax-Exempt Funds: Our three Institutional Prime and Tax-Exempt Funds (Goldman Sachs Financial Square Prime Obligations Fund, Goldman Sachs Financial Square Money Market Fund, and Goldman Sachs Financial Square Tax-Exempt Money Market Fund) will begin transacting at a floating NAV on October 11, 2016.
The effective date for adoption of the liquidity fees and redemption gates features on our Prime and Tax-Exempt Funds: All of our Institutional and Retail Prime and Tax-Exempt Funds will adopt the ability to impose liquidity fees or redemption gates based on fund’s weekly liquidity levels and at Board’s discretion on October 14, 2016.
In previous filings with the SEC, GSAM announced the following updates:
- The designation of two existing Prime Money Market funds as “Institutional Money Market Funds”: The Goldman Sachs Financial Square Money Market Fund, the Goldman Sachs Financial Square Prime Obligations Fund) and the Goldman Sachs Financial Square Tax-Exempt Money Market Fund announced that they would operate as “Institutional Money Market Funds” in December 2015.
- The establishment of new NAV strike times: In April 2016, GSAM announced that we would be offering the Institutional Prime and Tax-Exempt funds with the following NAV strike times:
- Goldman Sachs Financial Square Prime Obligations: 3 PM ET
- Goldman Sachs Financial Square Money Market: 8AM, 12PM, 3PM ET
- Goldman Sachs Financial Square Tax-Exempt Money Market: 2PM ET
In addition, Goldman Sachs’ Liquidity Solutions Portal has been enhanced with functionality to display and track institutional money market funds’ floating NAVs. Goldman Sachs’ Liquidity Solutions Portal allows investors to analyze, track and trade GSAM money market funds as well as a broad array of money market funds from other providers.
