Reserve Management Co. Inc. has announced that its U.S. Government Fund is now covered by Treasury’s temporary guarantee program for money market funds.
The firm “will use its best efforts to sell its portfolio securities by Jan. 3, 2009,” The Reserve noted in a statement.
“Because of this program, the Government Fund will be able to return all of the fund’s money to investors early next year,” Bruce Bent, president of the New York-based firm, said in the statement.
Currently, the U.S. Government Fund has $6.3 billion in assets.
The proceeds will be distributed to the fund’s investors.
The board of the fund voted Sept. 19 to liquidate following a run on money market mutual funds that was sparked when the Reserve’s Primary Fund “broke the buck” Sept. 15, falling below $1 in net asset value.