Pimco adds to equity offerings with two emerging markets funds
Pimco has continued diversifying into equity investing by launching two products focused on developing markets.
The PIMCO GIS EqS Emerging Markets fund and PIMCO GIS Emerging Multi-Asset fund will each be actively managed, by Masha Gordon (pictured) and Curtis Mewbourne respectively.
PIMCO GIS EqS Emerging Markets fund combines bottom-up selection of developing markets equities with top-down macro analysis. Gordon, manager, is an executive vice president and head of the emerging markets equity portfolio management team at PIMCO in London.
The PIMCO GIS Emerging Multi-Asset fund invests across developing markets and asset classes, from equities, local bonds, and US dollar-denominated bonds, to currencies. Mewbourne is a managing director and head of portfolio management in PIMCO’s New York office.
Michael Gomez, executive vice president, said separately this month the developed world continued to suffer “large headwinds to growth from the balance sheet damage infliced by the crisis of 2008. In addition, risks to investing are rising from geopolitical uncertainty in the Middle East, natural disasters in Japan and the threat of rising inflation.”
For such reasons, he said, investors should “look to focus investments in areas that may provide larger cushions to absorb these potential shocks”.
Gordon said emerging markets economies “represent a growing segment of the global corporate profit pool, yet we believe many investors remain under-allocated to emerging markets”.
Neel Kashkari, a managing director and head of new investment initiatives at PIMCO, said the group’s new funds formed part of the $1.2trn group’s strategy in active equities. PIMCO is better known for its fixed income expertise, and runs the world’s largest bond fund.
On the multi-asset fund Mewbourne will work with a team of three. Gordon will oversee equities investments, while Ramin Toloui and Michael Gomez, co-heads of PIMCO’s emerging markets fixed income portfolio management team, oversee US dollar and local currency debt respectively.
The latest funds sit within PIMCO’s UCITS III Global Investor Series, a Dublin-registered fund complex that comprises 41 sub-funds with £46bn assets. Investors in the sub-funds have daily liquidity.