Reserve Funds has entered into an agreement with the U.S. Treasurys Temporary Guarantee Agreement Program for Money Market Funds, whereby the Treasury will purchase any outstanding securities in the Reserve U.S. Government Fund not sold by January 3.
The fund will use its best efforts to sell all of its portfolio securities prior to January 3 at a price not less than the amortized cost, unless approved by the Treasury.
Because of this agreement, the Government Fund will be able to return all of the funds money to investors early next year, said Bruce Bent, president of Reserve Management Company Inc. This agreement allows us to achieve our goal of preservation of capital but enables investors to get their money back sooner. I want to thank our investors for their patience and understanding during these past few months.
The fund currently has $6.3 billion in assets, with $231 million in cash. The fund will make an interim distribution to shareholders when the fund reaches $1 billion, as part of the agreement with the Treasury.