Pimco has launched a US investment grade corporate bond fund to provide an alternative for European investors to low yielding government and domestic bonds.
The Global Investor Series US Investment Grade Corporate Bond fund will consist of high quality US dollar-denominated corporate bonds and will initially be registered in the UK and Dublin before other European countries.
The fund is managed by Mark Kiesel, managing director and chief investment officer global credit at the firm, and his team.
As for the investment process, the new fund will follow the firm’s global strategy of top-down considerations, bottom-up fundamentals, and valuations.
The new fund will be part of the firm’s UCITS compliant GIS fund range which currently has with $98.5bn under management.
Kiesel says: “With yields on European government and corporate bonds at historic lows, and in some cases negative, the US corporate bond market continues to be one of the main areas offering much needed yield.”