Legg Mason Partners to liquidate five Western Asset money market funds

By Tali David

Minneapolis, Dec. 29 - Legg Mason Partners Money Market Trust will liquidate and terminate five of its money market funds, according to a 497 filing with the Securities and Exchange Commission.

The liquidation of the Western Asset Money Market Fund, Western Asset Municipal Money Market Fund, Western Asset California Municipal Money Market Fund, Western Asset New York Municipal Money Market Fund and Western Asset Massachusetts Municipal Money Market Fund will finalize no later than June 30, 2012.

The liquidations will coincide with the launch of alternate investment products for cash sweep clients and customers of Morgan Stanley Smith Barney, for which the funds serve as sweep vehicles. In addition, the liquidation of Western Asset Money Market Fund will occur in multiple stages, which commenced with the liquidation of class I shares in August 2010.

Effective immediately, the funds are closed to new investors, but they will continue to be offered through intermediaries that currently have relationships with the funds and to current shareholders having accounts directly with the funds until final liquidation.

Shareholders may redeem or exchange their shares at any time prior to the liquidation date. Redemption of shares is generally considered a taxable event, but there will be no gain or loss on a redemption as long as the relevant fund maintains a $1.00 share price and other conditions are met.

The filing noted that the board of Western Asset Money Market Fund agreed to retain a portion of the fund's net income to offset prior capital losses.

Legg Mason is a Baltimore-based asset management firm.

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