Primary Fund Investors Get $1 Billion Payback

Reserve Funds paid back an additional $1 billion of the once $63 billion Primary Fund to shareholders, leaving a remaining balance of $4.5 billion. The asset manager is holding $3.5 billion of that in a special reserve for legal and accounting fees.

Nonetheless, the federal judge overseeing the Securities and Exchange Commission’s distribution plan in the U.S. District Court for the Southern District of New York, said he wants the fund firm to return at least most of the remaining money by Dec. 23.

The judge also reportedly said he will decide on whether to order a clawback of money from investors who redeemed shares before Reserve put a lid on redemptions.