PIMCO, a leading global investment management firm, has launched the PIMCO Income Fund in Australia. The actively-managed fixed interest fund aims to deliver a competitive and consistent level of monthly income distributions without compromising total return. Modest long term capital appreciation is a critical secondary objective.
The fund is managed by Dan Ivascyn, Managing Director and PIMCO’s Group Chief Investment Officer, and Alfred Murata, Managing Director, both of whom were named Morningstar’s U.S. 2013 Fixed Income Managers of the Year. PIMCO has successfully offered this strategy to investors in the U.S since 2007 and has had first quintile performance over the past 1, 3 and 5 years in the U.S. (see note 1).
The Fund pursues investment opportunities across sectors globally and has the flexibility to manage duration and invest in areas that help manage interest rate risk. Unlike many other income-strategies that focus mainly on corporate bonds and can invest without limit in high yield securities, the PIMCO Income Fund has specific limits on below investment-grade corporate securities and securities economically linked to emerging markets.
“Investors increasingly want income while preserving capital and this strategy combines diversified sources of income with rigorous risk management backed by PIMCO’s research and analytical expertise across sectors globally,” said Mr. Ivascyn.
Adrian Stewart, Head of PIMCO Australia and New Zealand added, “Our clients are seeking attractive income and capital appreciation in a world where yield is hard to come by.” Added Mr. Stewart: “This fund takes a prudent approach to pursuing a relatively high and sustainable monthly income stream with limited volatility, and is an attractive addition to our existing range of solutions, particularly those planning for retirement.”
The fund received an introductory rating of “Recommended” from both Lonsec and Zenith and is available through the ASX mFund service. In its product assessment Zenith said, “The fund is an attractive income orientated strategy that fully benefits from the breadth of PIMCO’s global network of investment professionals.”
Notes:
1. Morningstar data as of 30 May 2016, “Multi-sector bond category”.
