Reserve completes liquidation of its Treasury Fund

The Reserve Management Co. of New York has announced that the liquidation of the Reserve U.S. Treasury Fund (RUTXX) and distribution concluded May 29. Some $54 million in assets were distributed, according to a spokesman. All redemptions in the fund were suspended May 27 in preparation for the final distribution of assets. The Reserve began liquidating its lineup of money market mutual funds last quarter in the wake of the fiasco of the Primary Fund (RPRXX), which broke the buck in September. The fund’s net asset value fell to 97 cents due to debt from the bankrupt Lehman Brothers Holdings Inc. of New York. Nearly all of the funds have been liquidated. The $62 billion Primary Fund is being liquidated in stages. It had $5.3 billion remaining in its portfolio as of May 29.