Forex to the fore in latest Pimco emerging-markets offering

Full Spectrum fund designed to take currency issues out of the equation for investors
APR 08, 2013
By  JKEPHART
Pacific Investment Management Co. LLC launched the Pimco Emerging Markets Full Spectrum Fund (PFSIX) on Monday, making it easier for advisers to get access to all the flavors of emerging market debt. Pimco already offers the $14 billion Pimco Emerging Local Bond Fund (PELBX), which invests only in emerging-markets bonds denominated in the local currency. The money manager's $7.9 billion Pimco Emerging Markets Bond Fund (PEBIX) invests only in dollar-denominated emerging markets bonds and the $6.8 billion Pimco Emerging Markets Currency Fund (PLMIX) invests solely in emerging-markets currencies. The Full Spectrum fund will combine the strategies of Pimco's three existing emerging-markets bond funds into one single offering. Portfolio manager Michael Gomez, who also manages the three existing funds, will be able to choose among local currency bonds, dollar-denominated bonds and currencies — depending on where he sees the most opportunity. “Many fast-growing emerging markets offer investors a range of choices, such as undervalued currencies, attractive yields in local bond markets, the improving credit quality of sovereign debt or the higher yields of corporate bonds, but identifying and capturing the best opportunities requires a dynamic asset allocation framework and robust risk management,” Mr. Gomez said in a statement. Emerging-markets bonds exploded in popularity last year thanks to their 4% to 5% yields and improving credit outlook. Assets in the funds rose 60% in 2012 to $80 billion — up from $50 billion — according to Morningstar Inc. Despite the impressive growth rate, Pimco argues that many investors are still underinvested in emerging markets. One-third of advisers plan to increase their allocation to emerging-markets debt this year, according to the InvestmentNews 2013 Investment Outlook survey, in which 592 financial advisers participated. Just under half of the advisers surveyed plan to keep their allocations the same this year.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.