Reserve Update on Primary Fund
The Reserve has posted a press release entitled, "Update to Primary Fund Distribution Schedule," which says, "The Reserve is pleased to announce that it will begin the fifth distribution to Primary Fund shareholders on or about October 2, 2009. This distribution in the amount of approximately $1 billion represents approximately 22% of the Fund's remaining asset value of $4.5 billion as of the close of business on September 22, 2009. Including this fifth distribution, $47.1 billion, or approximately 92% of Fund assets as of the close of business on September 15, 2008, has been returned to investors to date. Approximately $3.5 billion remains in the Fund, which includes the Lehman Brothers Holdings Inc. securities held in the Fund, which are valued at zero." It continues, "This fifth distribution is being paid pro rata 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. The Fund's net asset value fell below $1.00 per share on September 16, 2008. Each investor's pro rata share for this fifth distribution was calculated using the account balance after the previous four distributions.... This distribution represents principal only. The income accrued after September 14, 2008 is addressed in the Fund's Plan of Liquidation." See also, AP's "Fallen money-market fund makes $1B distribution".
