Pimco’s bond fund unconstrained
By Aaron Siegel
July 9, 2008, 5:02 PM EST
|
|
Pacific Investment Management Co. has launched the Pimco Unconstrained Bond Fund, which aims to make investments without sticking to benchmark-specific guidelines.
The fund is run by Pimco managing director and portfolio manager Chris Dialynas and trades under the ticker symbol PFIUX.
“The underlying strategy of the UBF provides greater scope to adjust duration exposure, allocate across sectors, express our active views and tap into our global-fixed-income toolkit beyond what is possible with benchmark-oriented funds,” Mr. Dialynas said in a statement.
The fund offers the traditional characteristics of a core bond fund, such as limited downside risk, low correlation with equities, liquidity and diversification.
The fund also has the option to invest in derivative instruments, such as options, futures contracts or swap agreements; mortgage- and asset-backed securities; and securities denominated in foreign currencies.
Additionally, up to 50% of the fund’s assets can be invested in securities and instruments economically tied to emerging market countries and up to 40% of its assets can be invested in high-yield corporate bonds.
Newport Beach, Calif.-based Pimco managed more than $800 billion in assets as of March 31.
Reproductions and distribution of the above news story are strictly prohibited. To order reprints and/or request permission to use the article in full or partial format please contact our Reprint Sales Manager at (732) 723-0569.
