Pimco, the global bond investor, has launched an absolute return fund which invests in the global mortgage-backed securities market.
The Pimco GIS Mortgage Opportunities fund will invest in the MBS market globally, which currently makes $11trn of the fixed income space, and will actively manage exposure to a variety of risk factors, including interest-rate risk and credit risk.
It will use different share classes in different currencies and will be registered in Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Singapore, Spain, Sweden and the UK.
Daniel Hyman, Alfred Murata and Josh Anderson within the global team of portfolio managers will manage the fund.
Hyman says: “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.”
Charges for the fund are 1.59 per cent.