A Statement Regarding Reserve Yield Plus Fund
November 12, 2009 06:25 PM Eastern Time
NEW YORK--(EON: Enhanced Online News)--The Board of Trustees (the “Board”) of Reserve Short-Term Investment Trust (t
previously announced that the Trust would liquidate the assets of the Yield Plus Fund (the “Fund”). The Fund has been making interi
shareholders pro rata out of Fund assets and has returned more than $1 billion, representing more than 90% of its assets. The Boar
approach because it considered it important to provide liquidity to investors.
As of today, approximately $85.5 million remains in the Fund (not including the value of the Lehman Brothers securities in the Fund’
including the Fund’s holdings of the Primary Fund). Given the uncertainties related to pending claims and other fund expenses, the B
not to make additional distributions at this time, but expects to revisit these considerations in the near future. The reasons for this are
First, until the ongoing litigation in In re The Reserve Fund Securities and Derivative Litigation, Ross v. Reserve Management Comp
08 Civ. 10261 (PGG) (S.D.N.Y.) is settled or resolved in another manner, the Board believes it prudent to set aside money to cov
The primary allegations in that litigation relate to the Fund’s holdings of Lehman Brothers securities and their subsequent diminution i
difference between the par value and an estimated current value of those holdings is approximately $24.9 million.
Second, although amounts distributed to date in partial liquidations of the Fund have been paid to shareholders pro rata based upon
shares owned by each shareholder, it is possible the Fund will ultimately be required to distribute assets on a non-pro rata basis. Th
aside $37.8 million to fund such non-pro rata distributions.
Third, the Board must set aside an amount to cover the Fund’s litigation fees and expenses and the Trust’s potential obligation to in
members and officers of the Trust, as well as other parties (the “Indemnitees”), and to advance their legal