News MoA Money Market Fund conversion into the MoA US Government Money Market Fund

The MoA Money Market Fund is changing to the MoA US Government Money Market Fund

The MoA Money Market Fund is currently operated as an institutional prime money market fund. In October of 2024, all institutional prime funds will be required to comply with new Securities & Exchange Commission (SEC) money market reform rules. Operational changes required by these new rules institute new investment restrictions, reporting enhancements, and potential shareholder liquidity fees that are not applicable to US government money market funds. After MoA Funds and fund management completed a detailed analysis of the new rules, we concluded that converting the fund to a “government money market fund” and renaming it the MoA US Government Money Market Fund was in the best interest of MoA Money Market Fund shareholders.

These changes will take effect on or about August 23, 2024:

  • The MoA Money Market Fund is rebranding to the MoA US Government Money Market Fund.
  • The Fund will feature a constant $1.00 per share Net Asset Value (NAV).
  • On August 23, a stock split will occur decreasing the NAV of each share to $1.00 and proportionally increasing the number of shares each investor owns. The value of a shareholder’s account will not change because of this stock split.
  • The Fund will begin issuing a daily dividend that is paid monthly.
  • The investment strategy will be updated to increase holdings in US Government securities and cash.

In connection with the conversion to a government money market fund, it is anticipated that the MoA Money Market Fund will transition its portfolio to securities that are eligible investments for a government money market fund prior to August 23, 2024.

Q: How will the investment strategies of the fund change?
A: The fund’s investment strategy will change so that the MoA US Government Money Market Fund will invest at least 99.5% of the fund’s assets in cash, government securities and/or repurchase agreements that are fully collateralized by US government securities.

Q: How will this change impact fund performance?
A: Capital Management anticipates minimal impact to the Fund’s yield as the MoA Money Market Fund currently invests the majority of its assets in government securities. Once the Fund converts to a $1.00 constant NAV per share, there will no longer be any fluctuation in the Fund’s share price, so shareholders will no longer experience increases or decreases to the value of the shares that they own.

Q: How will this impact annual operating expenses of the fund?
A: The total annual fund operating expenses are not changing from the current rate of 0.23%.

Q: Do shareholders need to take any action?
A: No. MoA will automatically process the share split and update the number of shares held in each shareholder’s account(s). Daily dividends are calculated, paid, and reinvest automatically based upon the current elections of the shareholder in the MoA Money Market Fund. This conversion requires no shareholder action, and shareholders will be able to review new share balance(s) starting on or about August 27, 2024, via established communication channels.

Q: Will shareholders experience any taxable events from this conversion?
A: No. The conversion, including the stock split, will not result in any taxable event for the Fund’s shareholders.