PIMCO has launched the PIMCO GIS Credit Absolute Return Fund for investors seeking a global, diversified strategy that is focused on absolute return and not constrained by a benchmark. The PIMCO GIS Credit Absolute Return Fund, which has a “go-anywhere” investment style and can employ a wide range of investments, is managed by Mark Kiesel (pictured), a managing director and global head of corporate bond portfolio management.
The fund seeks out long-term, strategic investments as well as shorter-term tactical opportunities in an effort to provide positive returns in any market environment. It is designed to enable investors to diversify their fixed income allocation without being tied to risks PIMCO believes can be embedded in a benchmark. The PIMCO GIS Credit Absolute Return Fund will draw on PIMCO’s global credit expertise, proven investment process, research and risk management techniques to provide an absolute return strategy for investors looking for diversification from traditional long-only funds.
“PIMCO’s investment process guides our macroeconomic view and helps enable us to identify risk factors across all fixed income markets,” Kiesel says. “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.
“This strategy can pivot in order to help achieve the absolute return objective. For example, the strategy can take on greater exposure to credit when spreads are attractive and, conversely, reduce overall exposure when necessary and instead focus on relative value between credit sectors.”
The fund has been added to PIMCO’s UCITS compliant Global Investor Series (GIS) fund range. This Dublin-registered range now comprises 44 sub-funds with GBP53 billion (EUR61 billion, USD82 billion) under management as of 30 September, 2011. With daily liquidity, investors can gain exposure to a broad range of asset classes, from the more traditional global and regional core fixed income funds, through credit portfolios, to asset allocation and alternative solutions. The funds are accessible in a variety of share classes in different currencies, depending on client requirements.
Institutional shares of the PIMCO GIS Credit Absolute Return Fund will trade under the ticker symbol PIMCIUA.