PIMCO, the global investment management behemoth, has added a new fund to its UCITS-compliant Global Investor Series (GIS) fund range.
PIMCO, the global investment management behemoth, has added a new fund to its UCITS-compliant Global Investor Series (GIS) fund range. The PIMCO GIS Credit Absolute Return Fund uses what the firm refers to as a ‘go anywhere’ investment style and will employ a wide range of investments to meet the needs of investors seeking a global, diversified strategy in an absolute return format. Mark Kiesel, a managing director and global head of corporate bond portfolio management, manages the new fund. Both short-term tactical opportunities and long-term strategic opportunities will be pursued, the portfolio being designed to allow investors to diversify their fixed income allocation without being tied to what PIMCO believes are benchmark-embedded risks. The fund uses PIMCO’s investment process to develop macroeconomic views and identify risk factors across all fixed income markets with Kiesel commenting: “We couple this top-down view with a vigorous bottom-up analysis to seek the best long and short credit positions in every part of the fixed income market from investment grade credit, high yield, emerging market credit and bank loans to convertible and municipal securities.”
Kiesel added that the strategy could pivot by taking on greater exposure to credit when spreads become attractive, and reduce exposure when necessary, focusing instead on relative value between credit sectors, in order to achieve the fund’s absolute return objective. PIMCO’s GIS fund range now boasts 44 sub-funds totalling USD82billion in AUM as of end-September 2011. The firm has more than USD185billion of assets serviced or managed out of Europe and more than USD1.35trillion worldwide.
