First payouts made to Primary Fund shareholders

The Reserve Management Co. Inc. of New York today completed the first wave of distributions to shareholders from the liquidation of the Primary Fund. Each investor will receive approximately 50% of their current balance in the fund. The initial $26 billion in distribution to shareholders began yesterday with the mailing of checks to retail direct shareholders. Payments by wire to all other shareholders will be made today, the firm announced. The remainder of the distributions will be made on a periodic basis as cash accumulates in the fund, The Reserve noted. “We will notify you a soon as possible as to when the next distribution will be made,” according to the firm’s release. The fund’s total assets were approximately $51 billion at the close of business Sept. 15. The fund’s net asset value fell below $1 per share Sept. 16. When the Primary Fund “broke the buck,” it set off a run on money market funds industrywide. The Reserve also became the focus of several lawsuits as investors have been unable to access their funds.