A large financial services company says it will commit its own funds to protect clients who have invested in a troubled money market fund.
Ameriprise Financial Inc., Minneapolis, says it will commit up to $33 million to help clients who invested in the Primary Fund, a money market mutual fund managed by Reserve Management Company Inc., New York.
The Reserve began suffering an outflow of client assets last week, when the net asset value of its shares fell below $1.
The Reserve managers had invested some of the funds assets in securities issued by Lehman Brothers Holdings Inc., New York, which is seeking bankruptcy court protection.