Pimco today announced the launch of a fund that targets an annual income distribution of 5 per cent.
The Ucits III Pimco Select UK income bond fund is managed by Mike Amey, the managing director and portfolio manager for sterling portfolios. Amey has previously worked for Rothschild Asset Management and Insight Investment.
Amey says there will be a sustained period of subdued growth in UK, leading the Bank of England to keep interest rate levels low. Such an environment, he says, demands a need for alternative sources of incomes through safer, higher yielding assets.
The fund seeks to surpass government bonds, certificates, cash and equity funds on a risk-adjusted basis.
The targeted 5 per cent annual income distribution is to be distributed on a monthly basis and has a duration range of between 1-8 years.
The fund will be available in institutional accumulation, institutional income, retail accumulation and retail income share classes and available on various investment platforms.