BOSTON (Reuters) – Northern Trust Corp (NTRS.O) said it will liquidate a $1.8 billion prime money market fund, one of a number to come under stress this year as investors withdraw cash.
In filings on Monday Northern Trust of Chicago said its fund board determined to liquidate and terminate its Prime Obligations Portfolio (NPAXX.O) around July 10, and return money to shareholders, with the action being in their “best interests.”
The fund’s manager in March had disclosed its liquidity level dipped temporarily, but Northern Trust did not give a more specific reason for the latest steps. A spokesman for the Chicago asset manager did not immediately return messages seeking comment.
Bloomberg previously reported Northern Trust’s action.
Like rivals, the prime fund owns a range of government, bank and commercial instruments to create a vehicle with cash-like features but higher yields than government-only portfolios.
However the sector has come under pressure in the ongoing…