A New York City asset manager is leaving the mutual fund business after 40 years.

Michael Lydon, president and CEO of Natixis subsidiary Reich & Tang, confirms that by July 31 the Manhattan-based liquidity solutions specialist plans to liquidate its money market mutual fund business, currently holding about $9.5 billion. Reich & Tang marketing director Frank Bonanno confirms that the shop's five money market funds (five onshore and one offshore) are its only mutual funds.

"The streamlining of our operations to focus on our FDIC deposit programs enables Reich & Tang to invest all of its resources into these programs and carve deeper into its niche as an expert in the deposit, liquidity, and short-term capital markets," Lydon states. "Given the ongoing regulatory changes that are being added to the already challenging landscape for money funds, the ability for mid-tier money fund sponsor firms to thrive has become significantly diminished."

Bonanno tells MFWire that Reich & Tang's FDIC products are sold to the same customers, in the same channels.

"It's a more attractive business line for us," Bonanno says. 

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