US fixed income specialist Pimco has launched the Pimco GIS Emerging Markets Opportunity Fund.
The fund will invest in a wide range of fixed income securities issued by companies or governments economically tied to emerging market countries. It aims to provide diversification benefits, while reducing volatility and providing investors with a more stable stream of returns over a full market cycle compared to traditional emerging markets beta strategies, the group said.
The fund is managed by Pramol Dhawan, Managing Director and Head of the Emerging Markets Portfolio Management team. Designed to access opportunities across different emerging market segments, the fund may invest in hard or local currency debt, investment grade and non-investment grade securities as well as emerging markets currencies.
Dhawan said: “Emerging markets debt is an inherently inefficient asset class due to factors such as incomplete information, periods of diminished market liquidity and relative value distortions. We aim to harness these inefficiencies by capturing most of the upside potential of the asset class while limiting the downside.”
The is accessible in a variety of share classes in different currencies, depending on client requirements. Pimco’s Ucits-compliant Global Investor Series (GIS) fund range comprises 61 sub-funds with €140bn under management as of end March.