Pimco is adding to its fixed income range with the launch of a US-focused fund that invests in a range of high quality, short-duration fixed income securities.
Jerome Schneider, managing director and head of the short-term and funding desk, will manage the Pimco GIS US Short-Term Fund with the aim of generating risk-adjusted returns and preserving capital.
Pimco says by limiting downside risk, the new fund gives investors a more appropriate risk/reward dynamic than they can currently obtain from traditional money market funds.
Schneider also manages the $14 billion (€10.3 billion) Pimco Short-Term Fund, domiciled in the US.
Schneider says: “Pimco believes ‘the new neutral’ means 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. Indeed, we have seen a great deal of interest in shorter-term strategies from investors over the last 12 months in particular.”
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