PIMCO has handed Euro Stars AA-rated manager Ramin Toloui a new fund designed to capture opportunities in the Asian local currency government bond market.
The Dublin-domiciled PIMCO GIS Asia Local Bond was officially launched at the end of June and currently has around $5 million assets under management.
It is set to invest at least 80% of its net assets in Asian local currency denominated bonds, which may include those which have been issued by entities outside of Asia.
PIMCO said the fund has an emphasis on high quality investments and also benefits from the higher yields on offer from emerging Asian issuers compared to developed world counterparts.
At launch the new approach has a strong emphasis on the South Korean and Singapore markets, which comprise around 30% of the combined geographic exposure.
It will be benchmarked against the HSBC Asian Local Bond index, which tracks the absolute performance of a portfolio consisting of local currency denominated bonds in emerging Asia.