PImco has launched a select global multi-asset fund today as a part of its select fund range.
The fund will be managed by CEO and co-CIO Mohamed A. El-Erian. The team also includes including portfolio manager Curtis Mewbourne, who has responsibility for relative value strategies, and managing director and head of quantitative investment portfolios Vineer Bhansali, who has oversight of tail risk management. These “tail risk” hedging strategies will be used to explicitly protect against the adverse impact of market shocks and systemic risk.
The portfolio will invest in equities, bonds, commodities, real estate and inflation-linked bonds.
Bhansali says: “A greater risk of market shocks and policy mistakes is arising from the evolving macro economy and growing role of the government as a market participant. Meanwhile, the increasing divergence in monetary policies and inflation regimes across regions is coming to bear on investment returns. Against this backdrop, traditional asset allocation approaches to deliver long-term after inflation returns with effective risk management are being challenged.”