State Street Research & Management shuttered four institutional mutual funds that failed to attract enough assets to become profitable, CBS MarketWatch reports.
Board members of the four State Street funds Institutional Core Fixed Income, Core Plus Fixed Income, Large Cap Growth and Large Cap Analyst voted this week to liquidate the funds and give shareholders back their assets. The four funds collectively have $151 million of assets.
A State Street spokeswoman called the funds a failed experiment in an institutional market dominated by special low-cost share classes of retail mutual funds. She also noted that the decision to liquidate the investments was influenced by the firms recent sale to BlackRock, Inc.
Shareholders can expect automatic redemptions of their funds net asset values on or after Jan. 14. Sales of new shares, other than automatic dividend reinvestments, to new and existing shareholders will cease on Oct. 8.