MutualFundWire.com: Less Than One Percent of Primary's Assets Are Still in Reserve
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MutualFundWire.com
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Friday, July 16, 2010
Less Than One Percent of Primary's Assets Are Still in Reserve
The Reserve is making its seventh distribution to Primary Fund shareholders today. Almost two years after the $51 billion money market fund broke the buck and froze, Bruce Bent and his team at the Reserve are sending another $215 million out to the shareholders, leaving only 0.96 percent of the fund's September 15, 2008 assets undistributed.
For the full story on the the death of the Reserve and its Primary Fund, see MFWire's timeline.
Primary broke the buck on September 16, 2008, in the wake of the collapse of Lehman Brothers.
"We are very happy to move forward with this significant step in getting money to our shareholders," stated Bent, chairman of the Reserve, noting the involvement of the U.S. District Court for the Southern District of New York. "We have been working as quickly as possible to finalize the liquidation of the Fund in compliance with the Court's Order. Thank you for your patience."
According to the Reserve, it has now distributed $50.7 billion to Primary Fund shareholders since September 16, 2008.
Company Press Release
New York, July 15, 2010 – The Reserve is pleased to announce that it will begin its seventh distribution to Primary Fund shareholders on or about July 16, 2010. The distribution, in the amount of approximately $215 million, represents approximately 67% of the Fund’s remaining asset value of $323 million as of the close of business on July 9, 2010. Including this seventh distribution, $50.7 billion, or approximately 99.04% of Fund assets as of the close of business on September 15, 2008, will have been returned to investors.
This seventh distribution, which has been ordered by and is subject to the supervision and oversight of the United States District Court for the Southern District of New York, is being paid to all investors remaining in the Fund, including those who submitted redemption orders that had not been funded and those who have not submitted redemption orders, in accordance with the terms of U.S. District Court’s Orders dated November 25, 2009 and April 16, 2010. The Fund’s net asset value fell below $1.00 per share on September 16, 2008.
“We are very happy to move forward with this very significant step in getting money to our shareholders,” said Bruce R. Bent, Chairman of The Reserve Fund. “We have been working as quickly as possible to finalize the liquidation of the Fund in compliance with the Court’s Order. Thank you for your patience.”
For more information regarding your specific account, please contact your financial adviser or Reserve’s customer service at 800-637-1700.
Note: The receipt of the distribution is without prejudice to any legal rights or remedies available to an investor.
An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Resrv Partners, Inc., Distributor. Member FINRA. 07/10
Printed from: MFWire.com/story.asp?s=32827
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