PIMCO bond fund launches with bias to asset-backed securities

PIMCO has soft-launched its Select UK Income Bond fund with its largest allocation to asset-backed and mortgage-backed securities.

The UCITS III vehicle, run by managing director Mike Amey, aims to achieve a gross target income of 5% per annum through investing in unloved sectors such as ABS and residential and commercial MBS. The fund will aim to source income outside the traditional equity income and high yield asset classes, which Amey expects will be hit by low growth and interest rates. “This is a shorter maturity bond fund primarily investing in UK assets. It invests in investment grade securities, and we can buy high yield, but we do not think this asset class embraces the full range of opportunities in th...