A second liquidating fund from the Reserve
just started shelling out cash to shareholders, and this one has maintained a $1 NAV. On Thursday the New York City-based money market fund pioneers revealed that the initial $4.5 billion distribution from their U.S. Government Fund
has begun, after which about $6 billion will remain in the fund to liquidate at a later date.
For the full story on the the death of the Reserve and its Primary Fund, see MFWire's timeline.
The move follows the initial $26 billion distribution at the end of October (see MFWire
, October 31, 2008) from the infamous Primary Fund
that broke the buck in September (see MFWire
, September 17, 2008). Shortly thereafter, the Reserve unveiled plans to scrap both the Primary and the Government funds (see MFWire
, September 30, 2008
, and October 2, 2008
To get another perspective on the ongoing saga of Reserve chairman Bruce Bent
and his team, check out a Friday piece
's Christopher Condon, which follows in the footsteps of similar articles by USA Today
and the New York Times
. And turn back to the MFWire
from October 31, 2008 to see how Reserve fund shareholders are reacting to the turmoil.
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