Bloomberg.com: Worldwide: “Pimco to Open Money-Market Funds After Missing Surge (Update1)
Email | Print | A A A
By Miles Weiss
Jan. 22 (Bloomberg) — Pacific Investment Management Co. plans to increase its lineup of money-market funds, an investment class that the largest U.S. bond manager mostly avoided until industry assets soared 25 percent in 2008.
Pimco, based in Newport Beach, California, filed Jan. 16 with the U.S. Securities and Exchange Commission to sell shares in the new Treasury Money Market and Government Money Market funds. The funds will cater to institutional investors and will be run by Paul McCulley, a 10-year Pimco veteran who manages the $3.6 billion Short-Term Fund.
The company, with $790 billion in assets under management, has one prime money fund, a category that invests in corporate debt. Pimco missed out on the investor rush into funds that focus on government securities after the $62.6 billion Reserve Primary Fund suffered losses from the September bankruptcy of Lehman Brothers Holdings Inc.
“Money-market funds have had a number of problems,” said Peter Crane, president of Westborough, Massachusetts-based Crane Data LLC, an industry research firm. “But they were still the single best-performing segment of the mutual-fund business as far as asset growth goes.”
McCulley, 51, was traveling”