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Article: Week in Review.(Week In Review)
- Article from:
- Money Management Executive
- Article date:
- October 20, 2008
CopyrightCOPYRIGHT 2008 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Editorial Staff
Reserve Shuts Down Funds, Delays Primary Payout
With just $6 billion in assets left, of what once totaled $83 billion, Reserve Management is liquidating its 18 remaining funds. Given its longtime vow to guarantee investors safety, and its spectacular failure to do that with the Sept. 16 implosion of its flagship Primary Fund, industry watchers say the company's demise is not surprising, and also warranted.
"The first rule of investing is to allow investors to redeem," said Peter Crane, principal of Crane Data. "If you don't do that, investors will do it for you." Connie Bugbee, managing editor of iMoneyNet, pointed to ...