Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:The Reserve Seeks More Time to Liquidate Funds Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, September 22, 2008

The Reserve Seeks More Time to Liquidate Funds

News summary by MFWire's editors

The Reserve filed with the SEC Friday to postpone the payment of redemptions from its Primary Fund and the U.S. Government Fund for a longer period. The Manhattan-based fund firm is asking the SEC to approve the measure that would give the fund longer than seven days to liquidate and return proceeds to shareholders.

For the full story on the the death of the Reserve and its Primary Fund, see MFWire's timeline.

The Primary Fund, which had approximately $62 billion in AUM at the opening of business on September 15, 2008, had received redemption requests of approximately $60 billion b y week's end. The U.S. Government Fund, which had approximately $10 billion in assets under management at the opening of business on September 15, 2008, had received redemption requests this week of approximately $6 billion.




Company Press Release

New York, September 19, 2008 - The Reserve Fund, on behalf of two of its series, the Primary Fund and the U.S. Government Fund, today filed with the Securities and Exchange Commission (“SEC”) an Application for an Order to suspend all rights of redemption from either fund and to postpone the date of payment of redemption proceeds for a period longer than seven days after the tender of shares for redemption. The Staff of the SEC has advised the Fund that it intends to recommend the issuance of such Order.

The filing of the Application, pursuant to Section 22(e) of the Investment Company Act of 1940, was precipitated by the extraordinary market conditions of the past several days including the filing, on September 15, 2008, by Lehman Brothers Holdings Inc. of a petition for bankruptcy protection. These conditions contributed to unprecedented requests for redemptions for each of these two funds. The Primary Fund, which had approximately $62 billion in assets under management at the opening of business on September 15, 2008, has received redemption requests this week of approximately $60 billion. The U.S. Government Fund, which had approximately $10 billion in assets under management at the opening of business on September 15, 2008, has received redemption requests this week of approximately $6 billion. With continued significant illiquidity in the markets, the Funds’ investment adviser is unable to dispose of securities to fund redemptions without impairing the net asset value of each fund.

The issuance of the Order is intended to ensure an orderly liquidation of securities in each Fund and that all shareholders in both Funds are protected in the process.
 

Edited by: Erin Kello


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use