just brought an executive on board to advise on the liquidation of its Primary
funds. On Wednesday the New York City-based manager revealed that Merrill Lynch Investment Management
vet Joseph T. Mongale, Jr.
joined up "to evaluate The Reserve's portfolios and advise the independent trustees as the company and its investment adviser ... liquidate certain of the Fund's portfolios."
For the full story on the the death of the Reserve and its Primary Fund, see MFWire's timeline.
Monagle retired from what was then MLIM (now part of BlackRock) in 2000 after serving as co-head of global fixed income. Reserve chairman and president Bruce R. Bent
praised Monagle's "intelligence and insight", and Monagle added that that "it will be a pleasure" for him to work with Bent and his team.
The Reserve is currently in the process of liquidating its Primary and Government funds after collapse of Lehman Brothers (some of whose debt the funds held) led to the Primary Fund breaking the buck, followed by massive investor outflows (See The MFWire
, October 31, 2008
and November 14, 2008
Company Press Release
NEW YORK, Nov 19, 2008 (BUSINESS WIRE) -- The Reserve announced that Joseph T. Monagle, Jr., a former senior executive with Merrill Lynch & Co.'s asset management business, has been hired to evaluate The Reserve's portfolios and advise the independent trustees as the company and its investment adviser, Reserve Management Company, Inc., liquidate certain of the Fund's portfolios, including the Primary Fund and Government Fund.
Monagle, 60, was co-head of global fixed income at Merrill Lynch Investment Managers prior to his retirement in 2000. While at Merrill, he played a key role in increasing short-term assets to $130 billion and entering new global markets, including Brazil and Japan. He joined the securities firm in 1977 as a money market portfolio manager, rising to head of taxable fixed income in 1997.
"We are delighted to have secured the benefit of Joe Monagle's unparalleled expertise in the field of short-term debt and money markets as we work to extract the maximum value from The Reserve's portfolios for investors," said Trustee William Montgoris.
Monagle will assist in evaluating market conditions and liquidity for the securities inthe Fund's portfolios. He will also advise the independent trustees and the adviser on alternatives for the disposition of one or more of the Fund's portfolios.
"Joe ranks among the most knowledgeable and respected people in the money market business," said Bruce R. Bent, president and chairman of The Reserve. "His intelligence and insight will be a valuable addition to our team."
"It will be a pleasure to work with Bruce Bent, who has played such an important role in the creation and growth of the money market mutual fund industry that has benefited so many investors both large and small," Monagle said.
About The Reserve:
Chairman Bruce R. Bent and the late Henry B. R. Brown pioneered the money market mutual fund with the founding of The Reserve Fund in 1970. Originally a Maryland corporation, The Reserve was re-organized in 1986 as a Massachusetts business trust ("The Trust"). The Trust is an open-end, management investment company, registered with the Securities and Exchange Commission under the Investment Company Act of 1940. The Reserve serves the brokerage, banking and institutional marketplace and is the largest investment manager dedicated entirely to cash and money fund management. For more information visit www.TheR.com.
Neil Anderson, Managing Editor
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