January 5, 2010 / 12:15 AM / in 8 years

UPDATE 1-TCW Group to liquidate $500 mln fund

NEW YORK, Jan 4 (Reuters) - TCW Group Inc, an international asset management firm, said on Monday it would liquidate a senior mortgage securities fund following recent changes in its portfolio management team.

The UST/TCW Senior Mortgage Securities Fund LP has about $500 million of assets under management. TCW also withdrew the fund from the U.S. Treasury’s Legacy Securities Public-Private Investment Program.

TCW, which has about $110 billion of assets under management, will distribute the capital to the fund’s investors.

“Given that we are at a very early stage of investment in this particular product, and in light of the recent changes in the portfolio management team, we believe this action is appropriate and in-line with TCW’s commitment to act in the best interests of our clients,” said Chief Executive Marc Stern said in a statement.

The fund’s liquidation comes after TCW fired Jeffrey Gundlach, one of the top-performing bond fund managers of the past decade, last month. Gundlach told Reuters in an interview in December that he has attracted at least 39 other TCW employees to his new firm, DoubleLine LLC. (Reporting by Deepa Seetharaman; Editing by Steve Orlofsky)

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