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Primary Fund Plans $20B Distribution
Payouts Will Begin Oct. 13
September 30, 2008
The Reserve will liquidate its Primary Fund and begin returning cash to shareholders, according to an announcement on Monday.
The $20 billion distribution, set to be made Oct. 13, represents approximately 32% of the Primary Fund’s total assets as of the close of business Sept. 15.
On Sept. 15 and 16, investors pulled approximately $40 billion from the fund, following the bankruptcy filing of Lehman Brothers. After markets closed on Sept 16, The Reserve announced its NAV had fallen to 97 cents a share, making it the first registered money market fund to break the buck in 14 years.
The Reserve’s board of trustees voted to return cash to all investors of the fund as of Sept. 15, including to investors that have submitted redemption orders that have not yet been funded.
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