Strategy Overview
PIMCO’s Prime Money Market strategy is designed to maximize current income while preserving capital and providing daily liquidity. To meet these goals, money market strategies traditionally invest in short-term, high-quality, fixed-income securities with minimal volatility and credit risk. These include, but are not limited to, U.S. Treasury securities, federal agency securities, commercial paper, banker’s acceptances, certificates of deposit, short-term corporate debt, and variable and floating rate debt securities.

The objective is to consistently outperform both a passive and active benchmark without taking on excess risk. The passive benchmark is represented by the Citigroup 3 Month Treasury Bill Index and the active benchmark is represented by the Lipper Money Market Index of the 30 largest money market mutual funds.

Applications for the Prime Money Market Strategy

Investment Philosophy and Sources of Added Value

Risk Management / Controls

Related Articles

How To Invest

Related Strategies


Short Duration


Past performance is not a guarantee or a reliable indicator of future results. Money market strategies are not insured or guaranteed by the FDIC or any other government agency and although they seek to preserve the value of your investment, it is possible to lose money by investing in the strategy. Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk. Certain U.S. Government securities are backed by the full faith of the government, obligations of U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio. Diversification does not ensure against loss.

The Citigroup 3-Month Treasury Bill Index is an unmanaged index representing monthly return equivalents of yield average of the last three 3-Month Treasury Bills issues (excluding the current month-end bill). The Lipper Money Market Fund Index is comprised of funds that invest in high-quality financial instruments rated in the top two grades with dollar-weighted average maturities of less than 90 days. Lipper Fund indices are calculated using a weighted aggregative composite index formula that equal-weights the constituent funds and reinvests capital gains distributions and income dividends. It is not possible to invest directly in an unmanaged index.

This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product.