Close Close

Portfolio > Mutual Funds

Original Money Market Fund Breaks the Buck

Your article was successfully shared with the contacts you provided.

The Reserve family of funds, which originated the money market fund concept with what is now called The Primary Fund and has some $120 billion under management, announced September 16 that The Primary Fund has broken the buck, putting the NAV at $0.97 as of 3:00 PM on September 16. The Reserve said it was taking the step after revaluing the $785 million face value of Lehman Brothers debt held by the fund at zero. Moreover, The Reserve said it is instituting a seven-day redemption delay from The Primary Fund. Beginning Sep. 17, The Reserve said it will calculate the NAV of The Primary Fund, which reportedly had about $23 billion in assets on Sep. 16, once a day at 5:00 PM Eastern time.