Northern Trust to Shutter Money-Market Fund After Redemptions
- Northern Prime Obligations to liquidate portfolio by July 10
- The $1.7 billion fund fell below SEC threshold in March tumult
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Northern Trust Corp. is shutting down a money-market mutual fund after volatility in March spurred redemptions that sent it below a regulatory threshold for maintaining liquidity.
The $1.7 billion Northern Institutional Prime Obligations Portfolio will stop accepting new investments next month and start selling its holdings under a liquidation plan set for July 10, according to a filing Monday. As a prime fund, it can invest in riskier securities than traditional money-market funds, including commercial paper, the term for short-dated bank debt and corporate IOUs.