Investment manager PIMCO has launched a global fund to invest in mortgage-backed securities in order to generate a source of returns “across full market cycles”.
PIMCO GIS Mortgage Opportunities Fund offers investors an absolute-return oriented strategy investing in a broad range of global mortgage-related securities, the firm said. The fund is structured as an open-ended UCITS fund (Undertakings for the Collective Investment of Transferable Securities), a mutual fund regulated by the European Union but sold world-wide.
“Untethered by a traditional benchmark, the fund has the flexibility to tactically allocate across various sub-sectors of the global MBS market, and actively manage exposure to a variety of risk factors, including interest-rate risk and credit risk,” PIMCO said in a statement.
The fund is managed by Daniel Hyman and Alfred Murata, who are both located in Newport Beach, California, and Josh Anderson, who is based in the firm’s London office.
“Given the historically low yields on core bonds, and the correlation of corporate credit to equities, a dedicated allocation to securitised assets can help investors improve the overall diversification of their portfolios while also potentially enhancing returns,” said Hyman.
The fund is available in a variety of share classes in different currencies. As of January 30, it is registered in Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Singapore, Spain, Sweden and the UK.
PIMCO is one of the largest investors in securitised assets, having invested in the asset class for more than 30 years.