Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Pimco launches two low duration funds

Pimco launches two low duration funds

Bond specialist Pimco has handed two of its most senior fund managers new funds designed to help investors combat interest rate risk.

The move sees Mark Kiesel and Mihir Worah, who were named as deputy CIOs at the end of January, handed a new fund each.

Pimco said it had opted to launch the two strategies in order to offer a format with lower structural interest rate risk for investors who may be concerned about rising rate risks.

Citywire + rated manager Kiesel (pictured) will run the Pimco GIS Low Duration Global Investment Grade Credit fund, which will invest mainly in short-dated corporate bonds.

Commenting on his new fund, Kiesel said: ‘Investors are looking for solutions to lower their overall exposure to interest rates in a potentially rising rate environment.

‘This new strategy can provide investors with the opportunity to participate in the short dated segment of the global credit market, providing more flexibility and less sensitivity to interest rate risk than a traditional global credit strategy.’

Meanwhile, inflation expert Worah, who runs three funds and was also handed a role on the group’s multi-asset fund last month, will manage the Pimco GIS Low Duration Real Return fund.

It will invest largely in the inflation-linked bond markets but will maintain structurally lower interest rate sensitivity than traditional inflation-linked bond funds, Pimco said.

Worah added: ‘The array of policies implemented by developed country governments and central banks to address the global financial crisis has resulted in unsustainably high debt levels and zero-bound nominal interest rates.

‘While these policies have successfully suppressed the risk of deflation and depression posed by the crisis, they have also increased the risk of higher inflation in the years ahead. This new strategy helps investors to better address the risk of higher inflation and rising rates.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

Mihir Worah
Mihir Worah
4/5 in Bonds - Global Inflation Linked (Performance over 3 years) Average Total Return: 5.05%
Mark Kiesel
Mark Kiesel
6/7 in Bonds - Global Corporates (Performance over 3 years) Average Total Return: 17.88%
Citywire TV
Brewin's Gutteridge: the opportunities in UK challenger banks

Brewin's Gutteridge: the opportunities in UK challenger banks

In this week's podcast, Brewin Dolphin's Ben Gutteridge and Guy Foster, discuss opportunities in the global financials sector with Aptus' Johnny De La Hey.

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Your Business: Cover Star Club

Profile: how Close Brothers gave power back to the regions

Profile: how Close Brothers gave power back to the regions

Almost a year into the role, Close Brothers Asset Management head of wealth management Andy Cumming has highlighted three keys areas of focus

Wealth Manager on Twitter