Launch of credit absolute return fund from PIMCO

The Dublin-registered fund offers a global, diversified go-anywhere credit strategy for all market conditions.

The PIMCO GIS Credit Absolute Return Fund is focused on absolute return and not constrained by a benchmark. The fund is managed by Mark Kiesel, managing director and global head of corporate bond portfolio management.

Kiesel aims to seek out long-term, strategic investments as well as shorter-term tactical opportunities in an effort to provide positive returns in any market environment. The fund is designed to enable investors to diversify their fixed income allocation without being tied to risks PIMCO believes can be embedded in a benchmark. Drawing on PIMCO’s global credit expertise, proven investment process, research and risk management techniques the fund aims to provide an absolute return strategy for investors looking for diversification from traditional long-only funds.

Commenting on the fund launch, Kiesel said: “PIMCO’s investment process guides our macroeconomic view and helps enable us to identify risk factors across all fixed income markets.

"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.”

Kiesel says the 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,” he adds.

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 £53bn  under management as of 30 September, 2011. The funds are accessible in a variety of share classes in different currencies, depending on client requirements.