Reserve Funds’ Primary Fund on Friday will make its sixth payment to investors. The $3.4 billion payment brings total payments to $50.5 billion, or approximately 99% of the fund’s assets as of Sept. 15, 2008, excluding the value of the Lehman Brothers securities it held, now valued at zero. Before the fund’s net asset value fell below $1.00 on Sept. 16, 2008, the fund held more than $60 billion.
Approximately $160 million, exclusive of the value of Lehman Brothers securities, which are valued at zero, will remain in the fund to cover legal fees and management costs.
The United States District Court for the Southern District of New York ordered and is supervising the payment.
“We are very happy to move forward with this very significant step in returning money to our shareholders,” said Bruce R. Bent, chairman of Reserve Funds. “We have been working as quickly as possible to finalize the liquidation of the fund in compliance with the court’s order. Thank you for your patience.”