It's a big week over at 1411 Broadway here in the Big Apple.

The liquidity and cash management specialty firm that occupies space at that address, Reich & Tang pprofile] has just topped $30 billion in assets under supervision. In fact, the company has reached $32 billion, making for a year-to-date increase in total assets by nearly 22 percent and a leap in money fund assets of 40 percent.

The shop, which is an affiliate of Natixis Global Asset Management [profile], has high hopes for the future. "Our expectation is to grow our money fund asset base by approximately 65% before the end of the year," said Michael Lydon Reich & Tang’s CEO.

See the full press release below.

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Company Press Release

Release-Reich & Tang Surpasses $30 Billion in Assets Under Supervision

July 23, 2013, New York, NY—Reich & Tang today announced that the firm has surpassed $30 billion in assets under supervision, a new milestone for the liquidity and cash management specialty firm. With more than $32 billion, the firm increased its total assets by nearly 22% and increased its money fund assets by 40% year-to-date, which is impressive in the painfully low interest rate environment shareholders have endured for the past five years.

“We are very excited to have surpassed the $30 billion milestone,” said Michael Lydon, Reich & Tang’s Chief Executive Officer. “This is validation that our value as a liquidity and cash management specialist is clearly what many of our clients are seeking and need, particularly in this complex cash environment they are trying to navigate. We are extremely thankful to our clients who continue to grow their trust in us to manage and facilitate their end customers’ cash management needs.”

The retail-focused Reich & Tang, an affiliate of Natixis Global Asset Management, manages approximately $16 billion in money market mutual funds and separately managed accounts, as well as administers approximately $16 billion in expanded FDIC insured programs offered through banks and broker-dealers. “The firm’s growth from the M&A side is a nice complement to the organic growth we are experiencing through our focused strategy,” added Lydon. On top of the multi-billion dollar HighMark Funds deal that we just completed, we have another $2-3 billion coming on board from existing and new client relationships over the next 45-60 days. Our expectation is to grow our money fund asset base by approximately 65% before the end of the year. Being able to accomplish this during a time when other money fund sponsors are talking about exiting the industry speaks volumes to the focus and commitment we have in the money fund space.”

Adding to the complexities in the cash and liquidity markets that have stymied the growth of many money fund sponsors, the SEC has proposed additional reform measures that are currently being contemplated by the industry. “While we believe that the SEC’s reforms enacted in 2010 are sufficient to protect money fund shareholders, it seems that additional reform is inevitable. That being said, we are extremely comfortable that the retail focused shareholder base we have long maintained, plus our FDIC-insured offerings we make available to banks and broker-dealers, will keep our clients and their end customers well insulated from changes that additional reform may bring,” concluded Lydon.

 

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