Tuesday, December 4, 2012

Pimco’s Gross Wins U.S. Patent on World Bond Index Method




Bill Gross, who runs the world’s largest mutual fund at Pacific Investment Management Co., received a U.S. patent for the methodology behind a global bond index that weighs countries by the size of their economy rather than their indebtedness.

The patent for the construction of the Global Advantage Bond Index was granted last month to Pimco founder and co-chief investment officer Gross, along with Ramin Toloui, global co- head of emerging markets portfolio management, said Mark Porterfield, a Pimco spokesman. By focusing on gross domestic product, the index avoids concentrating on countries saddled with debt and offers a greater weighting for developing markets….

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