REUTERS: Goldman Sachs poured more than US$1 billion into two of its prime money-market portfolios this week due to heavy investor withdrawals, according to a filing with the US securities regulator.
The bank repurchased securities from its two funds on Thursday after investors withdrew a net US$8.1 billion from them during a four-day stretch, according to the disclosure. During that four-day stretch, investors made US$6.84 billion in net withdrawals from the fund, Goldman disclosures show. If a prime fund's weekly liquidity level falls below 30 per cent, SEC rules give its board discretion to introduce redemption fees of up to 2 per cent to slow down investor withdrawals. They can also put up gates for up to 10 business days.