PIMCo Offers Hedge-Like Credit Fund

Aug 31 2011 | 2:43pm ET

Mutual fund giant Pacific Investment Management Co. has launched a hedge fund-like product investing in the firm's specialty, bonds.

Newport Beach, Calif.-based PIMCo styles its new Credit Absolute Return Fund a "go-anywhere" strategy that will employ some tactics favored by hedge funds but generally shunned by mutual funds. PIMCo said that global head of corporate bond portfolios Mark Kiesel will manage the fund.

"This strategy can pivot in order to help achieve the absolute return objective," he said. "For example, this 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."

Credit Absolute Return is not PIMCo's first hedge fund-like mutual fund: It's Unconstrained Bond Fund has more than $17 billion in assets under management.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of