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Pimco launches absolute return MBS strategy

Pimco launches absolute return MBS strategy

Pimco has launched a dedicated mortgage-backed securities (MBS) fund, the company has announced.

The PIMCO GIS Mortgage Opportunities fund will aim to generate consistent, absolute returns across full market cycles by investing in a broad range of mortgage-related securities.

The fund will be managed by Citywire A-rated Daniel Hyman, AA-rated Alfred Murata, and Josh Anderson.

It is designed to provide investors with dedicated exposure to the global mortgage-backed securities market.

Untethered by a traditional benchmark, the firm believes the fund has the flexibility to be tactically allocated across various subsectors of the global MBS market, and to actively manage exposure to a variety of risk factors – including interest rate and credit risk.

Commenting on the launch, Hyman said: 'Given the historically low yields on core bonds, and the correlation of corporate credit to equities, a dedicated allocation to securitised assets can help investors improve the overall diversification of their portfolios while also potentially enhancing returns.'

As of 30 January, the fund is registered for sale in Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Singapore, Spain, Sweden and the UK.

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