A follow-up proxy that Reserve Management, the investment advisor to the Reserve Funds and Hallmark Funds, filed with the Securities and Exchange Commission reveals the true cost of the company's error, discovered two years ago.

All told, Reserve is asking the current shareholders of four of its proprietary money funds, 12 single-state and one multi-state muni fund, to approve the fund manager's retention of approximately $935 million in fees earned over a nearly 10-year period. That includes roughly $630 million in investment advisory fees, many of which date back to June 1997, and distribution fees of another $305 million.

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