has delayed distributions from its Primary fund. The company said Monday that distributions of the $20 billion remaining in the fund will not occur in the previously stated time frame of on or about October 13. It said that determining accurately the number of shares each investor held in the Primary Fund has been extremely complex and could not be completed in the originally anticipated time frame. An update will be posted on The Reserve's website no later than Friday.
For the full story on the the death of the Reserve and its Primary Fund, see MFWire's timeline.
Company Press Release
New York, October 13, 2008 - On September 29th, The Reserve Fund announced that
its Board of Trustees had approved the distribution from the Reserve Primary Fund of
$20 billion to be distributed to all investors pro rata in proportion to the number of shares
each investor held in the Primary Fund as of the close of business on September 15,
2008. The announcement stated that the distribution was expected to occur on or about
The distribution will not occur in the time frame stated in the announcement. The
process of determining accurately the number of shares each investor held in the
Primary Fund has proven to be extremely complex and could not be completed in the
originally anticipated time frame. We have been working diligently to verify and confirm
the shares held by each investor on that date. This requires that each investor's
opening balance in the Primary Fund on September 15th be adjusted to reflect
permitted redemption transactions (via check, debit card and ACH), as well as any fund
purchases effected through dividend reinvestment. In addition, we have asked our
independent auditors, KPMG LLP, to perform certain procedures to provide additional
assurance about the accuracy of each investor's account balance information.
The $20 billion is being held in the Primary Fund. We will notify investors immediately
after we complete the process of calculating each investor's account balance as of
September 15th and will make the distribution at that time. We apologize for the delay
but we trust that you understand that it is in the best interests of all the investors in the
Primary Fund to make certain that the amounts distributed reflect accurately each
investor's interest in the fund.
We will post an update on our website no later than Friday, October 17th, if the
distribution has not been made prior to that date.
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