The Reserve said it is distributing $4.5 billion to shareholders of its U.S. Government Fund money market fund, or about 40% of the $10.5 billion that has been in the fund since September 15. On September 16, the Reserve Primary Fund broke the buck, along with two other Reserve money market funds–Reserve Yield Plus Fund, and Reserve International Liquidity Fund.
What the Reserve called the initial distribution from the Government Fund is being made "pro rata to all remaining investors, including those who submitted redemption orders that have not been funded." Bruce Bent, the president of the Reserve Management Company who pioneered the money market mutual fund, pledged in a statement that it would make "additional distributions as more cash becomes available either through sales at amortized cost (no loss being realized) or maturity."
