Pimco has launched a mirror version of its behemoth $14.3 billion Short-Term fund for European investors.
Domiciled in Ireland, the Pimco Global Investor Series US Short-Term fund will invest in a wide range of global high quality, short duration fixed income securities.
The fund will aim to preserve purchasing power, limit downside risk and give investors ‘a more appropriate risk-reward dynamic than they can currently get from traditional money market funds’, the company said.
Jerome Schneider, manager of both the GIS US Short-Term fund and the existing US mutual fund strategy, said investor appetite remains strong for short-term bond funds.
‘Pimco believes interest rates will remain lower for longer than many expect, so it is important to offer investors a broader range of fixed income solutions to navigate this low-rate environment,’ he said.
The strategy was launched this week and the company aims to distribute the fund across Europe imminently.The Pimco Short-Term fund has been running for 27 years. The A-share class has returned 1.47% in the three years to the end of June, compared with 0.8% on the Lipper Ultra Short Obligations US index, ranking it top quartile in the sector.