The Reserve Funds ranked as the fastest-growing money fund complex in 2003, ending the first quarter with $24 billion in assets under management, according to The Money Fund Report. That represents a 24% increase in the first quarter from the same period a year ago.
During the first quarter of the year, money market funds as a whole lost $63 billion. In addition, The Reserve Funds jumped two spots to become the sixth-largest privately held asset manager, according to Strategic Insight. A large portion of the growth has been driven by demand for The Reserve Primary Fund, the company said.
"These are uncertain times for the markets and the economy. Increasingly, cash management professionals are making more conservative investing decisions with their short-term corporate cash," Bruce Bent II, Reserves president, said in a statement. "By diversifying that cash into money funds that are free of commercial paper, theyre finding they can have both yield and good nights sleep."