PIMCO has announced the launch of the Global Investor Series (GIS) Emerging Markets Opportunity fund, which has the ability to invest across a wide range of emerging markets fixed income securities.
Pramol Dhawan, managing director and head of the emerging markets portfolio team at PIMCO, will be managing the fund.
The launch, the latest in the UCITs-compliant GIS fund range which currently consists of 61 sub-funds with $158.6bn under management (as of 31 March 2019), aims to provide investors with a stable stream of returns throughout a full market cycle, which differs from more traditional emerging markets beta strategies, while also reducing potential volatility.
The Emerging Markets Opportunity fund may invest in hard or local currency debt, non-investment and investment grade securities and emerging market currencies.
Dhawan commented: "Emerging markets debt is an inherently inefficient asset class due to factors such as incompletely 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."
Ryan Blute, PIMCO's managing director and head of global wealth management EMEA, added: "We believe that this strategy can play an important role in an investor's portfolio in several respects: as a core emerging market bond allocation, a complement to existing emerging market exposure or as part of a broader global credit portfolio."