MutualFundWire.com: Reserve Plans Round Two of Primary Fund Distribution Next Week

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Monday, November 24, 2008

Reserve Plans Round Two of Primary Fund Distribution Next Week

The Reserve said Friday that the second cash distribution, amounting to about $14 billion, for the Reserve Primary Fund will occur on or about December 5.

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

In late October, the New York firm made an initial distribution of $26 billion to the fund's shareholders (see The MFWire, October 31, 2008). The fund broke the buck on September 16.

Below is the announcement posted on the Reserve's Web site:

New York, November 21, 2008 – Reserve Management Company Inc. is pleased to announce that the second cash distribution for the Reserve Primary Fund will take place on or about December 5, 2008. We anticipate distributing approximately $14 billion. If we are able to sell additional securities at amortized cost (without a loss) between now and the distribution date, those proceeds will be included in the distribution.

On a positive note, over the past few weeks the market for certain Fund securities has improved, enabling the Fund to sell $5 billion in securities at a profit, rather than waiting for them to mature.

Thank you for your patience and forbearance during this time. We will continue to provide Fund updates on our website www.TheR.com.