PIMCO Shuts European MMF
"PIMCO Shuts European Money Market Fund" writes Dow Jones via Fox Business News. It says, "Pacific Investment Management Co., better known as Pimco, has closed a European money market fund, citing low interest rates. The bond fund manager shut its 80 million-euro Pimco GIS Euro Liquidity Fund on Tuesday. European money market funds have been struggling since the European Central Bank cut its deposit rate to zero in July. Many European money market funds shut out new investors in a move to offer returns, albeit meager, to existing clients. Last week, J.P. Morgan Chase & Co. (JPM) amended the structure of two of its European money market funds so they can operate even if interest rates turn negative. The bank added a new share class that works like this: If the fund's yield turns negative, investors would see their number of shares decline rather than take a loss, according to a client letter sent by the bank." In other news, ICI reported its latest weekly "Money Market Mutual Fund Assets". It says, "Total money market mutual fund assets increased by $940 million to $2.569 trillion for the week ended Wednesday, October 24, the Investment Company Institute reported today. Taxable government funds decreased by $520 million, taxable non-government funds increased by $2.85 billion, and tax-exempt funds decreased by $1.39 billion."
