The Reserve Funds' Reserve Yield Plus Fund has received both a AAAf rating from S&P, and a Short-Term Fund credit rating of Aaa from Moody's.
In addition, the Fund has already exceeded USD 750 million in assets since going live in June.
Reserve Yield Plus is the first enhanced cash mutual fund for both retail and institutional investors that seeks a stable USD 1.00 NAV. While the fund offers daily liquidity, it is not a money market fund.
The unique structure of the fund gives investors the ability to complement their current money fund holdings and potentially realize higher returns. The fund may at times invest at the short end of the yield curve when rates are rising, but also has the flexibility to invest in longer term securities, up to eighteen months, when rates are declining. This flexibility is key to differentiating it from a money market mutual fund.
The fund's investment objective is to seek as high a level of current income as is consistent with the preservation of capital and liquidity. Maintaining a weighted average maturity of 90 days or less, the fund invests in a diversified portfolio of high quality money market instruments and other short-term obligations denominated in U.S. dollars.
"The creation of this fund, and now its dual Aaa rating, reflects Reserve's continuing leadership role in creating cash management solutions for all investors," stated Bruce Bent II, President of The Reserve Funds.
Background notes: Founded in 1970, the Resreve Funds is the asset management complex launched the world's first money market fund and today oversees more than USD 30 billion [as of August 15, 2005] in mutual funds, cash management products and FDIC-insured deposit accounts. The company is the eighth largest privately owned asset management complex in the USA and the largest such firm in New York.
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