Washington Mutual Sells Fund Unit

Washington Mutual(WM Quote), continuing efforts to streamline its business, agreed to sell its mutual fund unit to Principal Financial Group (PFG Quote) for $740 million.

The unit, WM Advisors, had $26.4 billion in assets under management as of June 30. The deal is expected to result in a pretax gain of at least $650 million, Washington Mutual said.

"This transaction is in keeping with our strategy to streamline our business model and sharpen the focus of our products and services which target U.S. middle-market consumers and small businesses," said Washington Mutual Chairman and Chief Executive Kerry Killinger in a statement. "The 'manufacturing' of retail mutual funds by WM Advisors is not part of our core business." ...