American Funds seeks OK to merge two money market funds

American Funds plans to send out proxy statements next week to shareholders of its money market mutual funds seeking approval to merge two of the funds and convert one to a short-term bond fund.
APR 15, 2009
By  Bloomberg
American Funds plans to send out proxy statements next week to shareholders of its money market mutual funds seeking approval to merge two of the funds and convert one to a short-term bond fund. The boards of three funds voted to approve the changes, said American Funds spokesman Chuck Freadhoff. If approved by shareholders, the move would merge the Cash Management Trust of America Fund (CTAXX) and the U.S. Treasury Money Fund of America (UTAXX) with the American Funds Money Market Fund, which recently received SEC approval. The new fund, which will be open to investors as of May 1, will invest in Treasury securities, federal agency discount notes, high-quality commercial paper, bank and savings association obligations, and short-term corporate bonds and notes. In addition, a proxy vote will take place on a proposal to convert the Tax-Exempt Money Fund of America (TEAXX) into a short-term, tax-exempt bond fund. This fund will have a floating net asset value and will invest in debt with longer maturities, according to a report published by Chicago-based Morningstar Inc. The Cash Management Trust of America had $25 billion in assets, the U.S. Treasury Money Fund of America had $5.75 billion in assets and the Tax-Exempt Money Fund of America had $1.2 billion in assets as of Dec. 31. The shareholder meetings for all three funds are set for June 15. American Funds, advised by Capital Research and Management Co. of Los Angeles, had $750 billion in assets under management as of Jan. 31.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.