Pimco Retreats from Euro Money Market

Bond fund manager closes euro liquidity fund on negative yield risk.

Pacific Investment Management Co., the manager of the world’s biggest bond fund, is pulling back from Europe’s short-term money markets because of the risk of losing investors’ cash.

Pimco closed its 80 million-euro ($104 million) liquidity fund yesterday because record-low interest rates threatened its so-called stable net asset value, according to Michael Story, the firm’s London-based global product manager.

Fees Waived

Pimco told investors of the decision to liquidate the fund last month after it waived fees. The fund, which held short-term agency and government bonds and bank-issued repurchase agreements, kept a maximum average maturity of 60 days.

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