Another Reserve money market fund is about to permanently bite the dust. On Wednesday the New York-based fund firm revealed that it plans to distribute the remaining assets of the Reserve U.S. Treasury Fund at the end of this week.

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

Bruce Bent and his team first froze the fund in September after the collapse of the Reserve Primary Fund in the wake of Lehman Brothers' bankruptcy (see MFWire, 9/18/2008).

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Company Press Release

New York, May 27, 2009–We are pleased to announce that the final distribution of assets from the Reserve U.S. Treasury Fund will be on or about May 29, 2009. In preparation for the Fund’s final reconciliation and distribution, the Fund is suspending all redemptions including checking and ACH transactions effective the end of business today, May 27, 2009. All redemptions received in proper form on or prior to the Fund’s closing (2pm ET) May 27, will be honored. Any checks received by the Fund after that date will not be processed.

ACH transactions received on or prior to May 27 will be honored. If investors have recurring ACH transactions with the U.S. Treasury Fund applied against their account, they must redirect the payments from or to a different account, as these transactions will not be processed after May 27. Any ACH Automatic Transfer Plans previously established to transfer funds out of The Reserve will be cancelled as of the close of business on May 27.

Neither the Fund nor its affiliates will be responsible for any penalties or charges resulting from dishonored checks or from the cancellation and termination of the service transactions after the cut-off dates indicated above.

These modifications to the service transactions are being made in order to implement the reconciliation and liquidation of the U.S. Treasury Fund. Shareholders should direct questions to their broker or may contact Reserve’s Customer Service at 800-637-1700.

An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds. Money market yields may vary.

Resrv Partners, Inc., Distributor. Member FINRA. 05/09 

Edited by: Neil Anderson, Managing Editor


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