Pimco offer corporate bonds as tonic to low yield sovereigns

Pimco has launched an investment grade corporate bond fund to offer investors an alternative to government and domestic corporate bonds.

The Pimco Investment Grade Corporate Bond Fund invests in high quality corporate bonds denominated in US dollars and has the potential for higher yields and enhanced portfolio diversification, the firm said.

Mark Kiesel, managing director and chief investment officer of the global credit division, head the team that managed the fund.

Kiesel said that while European government and corporate bond yields are at historic lows, and in some cases even negative, US corporate bonds continue to offer yield.

Pimco has been managing US investment grade credit strategies since 2000 and has outperformed by 1.75% relative to the index, before fees, since launch.

As of September 15, the fund is registered for sale in the UK and Ireland. A spokesperson said the firm would be registered in other European markets in coming days.

Despite falling fortunes since the departure of Bill Gross, Pimco continues to manage assets of $1.5 trillion (€1.8 trillion) as of December 31, 2015.

©2016 funds europe

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