A unit of PNC Bank Corp. said it has launched a new offshore money market mutual fund for institutional and wealthy investors.
The International Dollar Reserve Fund I Ltd. was started June 1 under the laws of the Cayman Islands. The fund is being managed by PNC's Institutional Management Corp. unit, which is the investment adviser for $26 billion of money market funds.
The new offshore fund invests U.S. currency in dollar-denominated money market instruments issued by foreign banks, governments, companies, and other organizations.
Charles Landreth, executive vice president of the Institutional Management unit, said the new fund is the only offshore fund operated by PNC. The Pittsburgh-based company is the second-largest mutual fund manager among American banks.
But Mr. Landreth added that other offshore equity and bond funds were under consideration. "I think that's a natural next step," he said. The new fund, like other funds organized under the laws of foreign governments, cannot be sold to citizens of the United States.
But Mr. Landreth said that some American banks had agreed to make it available to nonresidents of this country.
He said the fund had $75 million of assets at the end of August. It is being marketed principally to foreign subsidiaries of American corporations.