ew York City-based Reserve Funds
grew its assets 50 percent to $21 billion in 2002 from $14 billion. Nearly all of those assets ($19 billion) are invested in the firm's institutional funds. The money fund specialist also said its institutional money market funds business grew 88 percent to $8.8 billion.
Both traditional and non-traditional cash management areas saw increased growth, according to Bruce Bent II
"In times like these, institutional investors are looking at Reserve's conservative investment approach for true diversification of their cash investments and to protect against credit risk. Not only do we offer a history of great performance, but portfolio quality, superior service and flexibility in terms of late daily cut-off times." said Bent.
Bent said 17 banks have signed on for its Reserve Return Sweep. That product enables banks to retain commercial deposits in an "on-balance sheet money" fund account, and provide commercial customers with interest on those balances, said Bent.
Reserve is also getting the word out on its Reserve Insured Deposits offering. That patented product is an FDIC-insured money-market account with no-minimum checking for both commercial and retail customers.
Reserve Funds Inking Bank Deals
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