The biggest country in Asia is showing that it trusts U.S. money managers to help manage its citizens’ government retirement funds.
The People’s Republic of China has hired Pacific Investment Management Company L.L.C., Newport Beach, Calif., to manage a portion of a $29 billion Chinese Social Security portfolio.
China already has been using Chinese money managers to help manage a portion of the defined benefit funds, which supplement provincial social security funds, according to PIMCO, a unit of Allianz A.G., Munich.
China now is investing some of the money with managers based outside China for the first time, and other Asian countries also are placing some of their social security assets with money managers in other countries, PIMCO says.
“We are honored that PIMCO has been chosen to help secure the financial future for the Chinese people,” PIMCO Chief Executive William Thompson says in a statement.