Bank of America: Closing Funds But Not Freezing Redemptions

Posted by John Carney, Dec 10, 2007, 4:05pm

A quick follow-up to this morning's story about the Columbia asset management fund. It is saying that it is closing its enhanced, private-placement money-market fund but that investors are being offered the option of cash redemptions or of switching their assets into other Columbia-managed funds. Because what are the odds that two funds would go down at the same place?

Bank of America says closing money market fund [Reuters]

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Posted by , Dec 10, 2007 4:50PM

The Columbia Strategic Cash Portfolio was closed last week
and is being ``wound down,'' Robert Stickler, a spokesman for
the Charlotte, North Carolina-based bank, said today in an
interview. Investors with smaller amounts in the fund can get
their money back at net asset value, while larger clients may
take control of specific assets. The NAV of the fund, which had
$33 billion two weeks ago, is 99.4 cents on the dollar today.

Posted by banned by BOA, Dec 11, 2007 9:42AM

Love this quote from BofA spokesman: “There’s no question that a number of clients aren’t happy that they don’t get back the dollar,” said Robert Stickler, a Bank of America spokesman. “That was the expectation. But it’s not like they’re losing 5 or 10 percent here. We’re talking about one half of 1 percent.” Uhhh, wasn't this a money market fund? Used for like, preservation of capital? So, breaking the buck is no big deal?

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