Reserve Sets Aside $3.5B For Lawsuit Expenses
March 9, 2009
Reserve Management's board has set aside $3.5 billion of the remaining assets in its failed Primary Fund to cover costs and expenses for pending lawsuits against the fund.
Shareholders can expect to see distributions of 91.72 cents for each dollar, unless the board decides to hold more back in the special lawsuit reserve. The net asset value of the Primary Fund is currently listed at 97 cents per dollar.
"No one would be happier than us to distribute more money," the Primary Fund's independent trustees said in a statement. "Unfortunately, there are 27 lawsuits seeking all sorts of damages, leaving us no choice but to set aside this sum to protect the interests of all the shareholders." The Primary Fund has approximately $7.4 billion in assets under management, down from $62 billion when it broke the buck on Sept. 16.
Allstate Closes Seven Target-Date Funds
Allstate has decided to cancel its seven ClearTarget Retirement Funds after only 10 months, saying it is exiting the target-date mutual fund business due to lackluster sales.
Gabelli's Daughter Wilson Joins Board of Directors
Gamco has elected founder Mario Gabelli's daughter, Elisa M. Wilson, to the board. She is a shareholder of Gamco's privately held parent company, GGCP, and, along with her siblings, owner of the partnership that leases office space to the firm. She is also president of Gabelli Foundation. Gabelli's brother, John D. Gabelli, is also on the board.
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