Raymond James Trust Sweep Program
Through the Raymond James Trust Sweep Program (RJTSP), available cash in your trust, custody or agency account is deposited into a money market mutual fund offered by Fidelity Investments, Inc. (Fidelity), as described below.
How the Raymond James Trust Sweep Program works
Each business day, Raymond James Trust, N.A. (RJT), as your fiduciary, custodian or agent, sweeps the available, uninvested cash in your account to the Fidelity Investments Money Market Treasury Portfolio – Institutional Class money market fund (hereafter, the “Fidelity Fund”). Funds deposited in your account after a cutoff time, which will ordinarily be 11:00 a.m. Eastern Time, will be swept to the Fidelity Fund on the next business day. RJT may adjust the cutoff time in its sole discretion from time to time. The Fidelity Fund is a government money market mutual fund that invests primarily in U.S. Treasury securities and repurchase agreements for such securities.
Withdrawal Procedures – RJT, as your fiduciary, may direct the withdrawal of funds from the Fidelity Fund to meet ongoing trust disbursement, investment, or other authorized needs. Funds will be withdrawn from the Fidelity Fund and transferred to your account as necessary to satisfy such demands. Withdrawals from the Fidelity Fund requested after the cutoff time will be processed the next business day.
Fidelity fund background information
The Fidelity Fund seeks to obtain as high a level of current income as is consistent with the preservation of principal and liquidity, within the limitations prescribed for the fund. The Fidelity Fund does seek to preserve the value of an investment at $1.00 per share, but the value of the investment is not guaranteed. An investor can lose money by investing in the Fidelity Fund.
Fees and Expenses – Fidelity retains an expense ratio of 18 bps (0.18%) on cash invested in the Fidelity Fund, of which it reimburses 4 bps (0.04%) to the Institutional Class shareholders, for net expenses of 14 bps (0.14%). By way of example, this means that on an investment of $10,000 left in the Fidelity Fund for 1 year, Fidelity would receive $14. If fund expenses fall below 14 bps (0.14%), Fidelity may recoup amounts it previously paid to reimburse net expenses over that amount.
Fidelity represents that if the Fidelity Fund's weekly liquid assets fall below 30% of its total assets because of market conditions or other factors, the Fidelity Fund will not impose a fee upon the sale of shares, nor temporarily suspend the ability to sell shares.
Prospectus – The prospectus for the Fidelity Fund contains further information about the Fund’s investment objectives, risks, fees and other matters. The information included in these RJTSP Disclosures relating to the Fidelity Fund is excerpted from the prospectus, and is qualified in its entirety by the prospectus itself. A copy of the prospectus may be obtained from your trust officer or online at: http://fundresearch.fidelity.com/mutual-funds/summary/31607A885.
Your relationship with Raymond James and Fidelity
Relationship with Raymond James – RJT is acting as your fiduciary, custodian or agent in establishing an investor relationship with the Fidelity Fund, sweeping your funds into the Fidelity Fund, and withdrawing your funds from the Fidelity Fund, as appropriate. No separate evidence of ownership will be issued to you. Your RJT account statements will reflect the balance held in the Fidelity Fund on your behalf. You should retain your RJT account statements for your records. You may at any time obtain information about your sweep investment in the Fidelity Fund by contacting your financial advisor or trust officer.
All transactions with respect to your funds invested in the Fidelity Fund must be directed by RJT and all information concerning such investment can only be obtained from RJT. Fidelity has no obligation to accept instructions from you with respect to your funds invested in the Fidelity Fund or to provide you information concerning such investment.
An investment in the Fidelity Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. RJT, Fidelity, and the respective affiliates of each have no legal obligation to provide financial support to the fund, and you should not expect that RJT, Fidelity, or the respective affiliates of either will provide financial support to the fund at any time.
Modifications, amendments, or terminations relating to the Raymond James Trust Sweep Program
RJT may, in its sole discretion, terminate your use of the RJTSP as a cash sweep investment option by providing notice to you. RJT may modify, amend the terms of, or terminate the RJTSP at any time in its sole discretion. In the event the RJTSP is modified, amended, or terminated, RJT will provide timely notice of such action, and of any new or revised cash sweep option(s).
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