Pimco has launched two low duration funds - the PIMCO GIS Global Low Duration Real Return Fund and the PIMCO GIS Low Duration Global Investment Grade Credit Fund.
Pimco has launched two low duration funds – the PIMCO GIS Global Low Duration Real Return Fund and the PIMCO GIS Low Duration Global Investment Grade Credit Fund.
The two strategies which use a format with lower structural interest rate risk for investors who may be concerned about rising rate risks.
The PIMCO GIS Low Duration Global Investment Grade Credit Fund focuses on short-dated corporate bonds and aims to provide investors with the ability to capture PIMCO’s consistent global credit alpha with less sensitivity to interest rate risk than a traditional global credit strategy. It will be managed by Mark Kiesel, deputy CIO and global head of corporate bond portfolio management team.
Kiesel commented: “Investors are looking for solutions to lower their overall exposure to interest rates in a potentially rising rate environment. This new strategy can provide investors with the opportunity to participate in the short dated segment of the global credit market, providing more flexibility and less sensitivity to interest rate risk than a traditional global credit strategy.”
The PIMCO GIS Global Low Duration Real Return Fund makes inflation-linked bond (‘ILB’) allocations but maintains a structurally lower real interest rate risk profile than traditional global ILB strategies. It benefits from PIMCO’s real return expertise and is managed by Mihir Worah, deputy CIO and head of the real return portfolio management team.
“We believe that investors should always be prepared for the risk of rising inflation. The array of policies implemented by developed country governments and central banks to address the global financial crisis has resulted in unsustainably high debt levels and zero-bound nominal interest rates. While these policies have successfully suppressed the risk of deflation and depression posed by the crisis, they have also increased the risk of higher inflation in the years ahead. This new strategy helps investors to better address the risk of higher inflation and rising rates ” Worah said.
InvestmentEurope is delighted to announce the Spring Pan-European Fund Selector Summit, to be held 9-11 April 2014 at the Beau Rivage Palace, Lausanne, Switzerland.
Click here for further details: http://events.investmenteurope.net/summit