PIMCO announced Wednesday the launch of the PIMCO Credit Absolute Return Fund. The company describes it as a fund “for investors seeking a global, diversified strategy that is focused on absolute return and not constrained by a benchmark.” Mark Kiesel, a managing director in the company’s headquarters in Newport Beach, Calif., will manage the fund.
This is the second major product announcement this year for PIMCO, which said in April it would release an ETF version of its popular PIMCO Total Return fund.
According to the company, the PIMCO Credit Absolute Return Fund "will seek long-term, strategic investments as well as shorter-term tactical opportunities in an effort to provide positive returns in any market environment.”
It is designed to enable investors to diversify their fixed income allocation without being tied to risks PIMCO believes can be embedded in a benchmark.
“This strategy can pivot in order to help achieve the absolute return objective,” Kiesel said in a statement. “For example, the strategy can take on greater exposure to credit when spreads are attractive and, conversely, reduce overall exposure when necessary and instead focus on relative value between credit sectors.”