Gabelli U.S. Treasury Money Market Fund Exceeds $5 Billion in Aum by Offering Tax-Advantaged Returns

Rhea-AI Summary

Gabelli Funds, announces that the Gabelli U.S. Treasury Money Market Fund (GABXX) has surpassed $5 billion in assets under management. The Fund offers a low-cost money market strategy with total expenses capped at 0.08% and tax-advantaged returns. Managed by Judy Raneri and Ron Eaker, the Fund invests solely in U.S. Treasury securities, aiming for high current income while preserving principal and liquidity.

Insights

Market Research Analyst

The announcement by Gabelli Funds, LLC regarding the Gabelli U.S. Treasury Money Market Fund surpassing $5 billion in assets under management signifies a notable milestone for the fund and its investors. This level of assets under management can typically lead to increased economies of scale, potentially reducing operational costs per unit and enhancing the fund's profitability. The capped total expense ratio of 0.08% is significantly lower than the industry average, which hovers around 0.25% for money market funds. Such a low cost structure is beneficial for investors, as it directly impacts net returns, especially in a low-yield environment.

Furthermore, the tax-exemption status of the dividends for state and local income tax provides an additional after-tax benefit, making the fund more appealing to investors in higher tax brackets or those residing in states with higher tax rates. This strategic positioning could lead to a competitive advantage and potentially attract more investors, thereby influencing the fund's net inflows and possibly its share price on the NASDAQ.

Financial Analyst

The performance and management of the Gabelli U.S. Treasury Money Market Fund are critical factors for current and prospective investors. The long tenure of Co-Portfolio Managers Judy Raneri and Ron Eaker, spanning 32 years, reflects a stable and experienced management team, which can be a strong selling point for the fund. Consistency in management is often associated with consistent fund performance, which is a key consideration for investors.

However, it is important to note that while the fund aims to preserve the value of investments at $1.00 per share, the disclosure that there is no guarantee of achieving this objective and the absence of legal obligation by the sponsor to support the fund financially is a reminder of the inherent risks associated with money market investments. Such statements could potentially affect investor sentiment, despite the fund's achievements and should be factored into investment decisions.

Economist

The health of the money market is often reflective of broader economic conditions. The Gabelli U.S. Treasury Money Market Fund's growth to $5 billion in assets under management indicates a robust demand for low-risk, liquid investment vehicles. This demand could be interpreted as a sign of investors' risk aversion, possibly due to economic uncertainties or market volatility. Money market funds, particularly those investing in U.S. Treasury securities, are seen as safe havens during such times.

Additionally, the competitive after-tax yield offered by the fund may indicate an environment where investors are seeking efficient tax strategies to maximize returns. This could be a response to changes in tax policies or a proactive approach by investors to optimize their portfolios in anticipation of such changes. The fund's success and its impact on the market will depend on the trajectory of interest rates, inflation and the overall economic climate, which govern the yields of U.S. Treasury securities and, consequently, the attractiveness of money market funds.

GREENWICH, Conn., April 05, 2024 (GLOBE NEWSWIRE) -- Gabelli Funds, LLC is proud to announce that the Gabelli U.S. Treasury Money Market Fund (the “Fund”) (NASDAQ: GABXX) exceeds $5 billion in assets under management. This achievement not only highlights the Fund's commitment to delivering a low cost money market strategy but also solidifies its standing as a top choice for shareholders seeking beneficial tax-advantaged returns. The Gabelli U.S. Treasury Money Market Fund is among the most attractive money market funds in its class.

The quality of U.S. Treasury securities coupled with total expenses capped at 0.08% and the exemption from state and local income taxes of its dividends, translates into a competitive after-tax yield. The Fund has been expertly managed by Co-Portfolio Managers Judy Raneri and Ron Eaker for the past 32 years.

The Gabelli U.S. Treasury Money Market Fund is managed by Gabelli Funds, LLC, a wholly owned subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI). The Fund invests exclusively in U.S. Treasury securities and its primary objective is high current income consistent with the preservation of principal and liquidity.

For more information regarding the Fund, visit our website or call:

Judith A. Raneri	Ronald S. Eaker
914-921-5417	914-921-5413

An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. There is no guarantee that the Fund can achieve its investment objective. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus contains more complete information about this and other matters and should be read carefully before investing. You can obtain a prospectus by calling Gabelli Funds, LLC at 1-800-GABELLI (1-800-422-3554).

Distributed by G.distributors, LLC, a registered broker dealer and member of FINRA.

FAQ

What is the ticker symbol for Gabelli U.S. Treasury Money Market Fund?

The ticker symbol for Gabelli U.S. Treasury Money Market Fund is GABXX.

Who manages the Gabelli U.S. Treasury Money Market Fund?

The Fund is expertly managed by Co-Portfolio Managers Judy Raneri and Ron Eaker.

What is the primary objective of the Gabelli U.S. Treasury Money Market Fund?

The Fund's primary objective is high current income consistent with the preservation of principal and liquidity.

What are the total expenses capped at for the Fund?

The total expenses for the Fund are capped at 0.08%.

Who is the parent company of Gabelli Funds, ?

Gabelli Funds, is a wholly owned subsidiary of GAMCO Investors, Inc. with the ticker symbol GAMI.