Placing a heavy bet on its "new normal" concept, which is predicated on the belief that global investment returns will be far lower than seen in the recent past, PIMCO announced Tuesday it had officially opened PIMCO EqS Emerging Markets Fund and PIMCO Emerging Multi-Asset Fund. The new funds are a strategic departure for the Newport Beach, Calif.-based firm, which is one of the world’s largest bond managers.
Both products will be managed by former Goldman Sachs executive Marsha Gordon, hired in 2010, from the firm’s London office.
According to the company, the EqS Emerging Markets Fund combines bottom-up equity selection with top-down macro analysis and risk management. It is designed to capture attractive risk-adjusted returns in emerging markets equities.
The Emerging Multi-Asset Fund combines risk management with the asset allocation across equities, local bonds, dollar-denominated bonds and currencies. The lead manager is Curtis Mewbourne, managing director and head of portfolio management in PIMCO's New York office.
“The launch of these two new funds is part of our strategy to introduce active equities solutions where we believe we can fully harness PIMCO’s global strengths,” said Neel Kashkari, a managing director and head of new investment initiatives at PIMCO, in a statement. Kashkari was hired by PIMCO in 2009 to lead the new effort.
Mewbourne will oversee asset allocation for the Emerging Multi-Asset Fund, working with three other specialist portfolio managers: Gordon will oversee equities investments; Ramin Toloui and Michael Gomez, executive vice presidents and co-heads of Emerging Markets Fixed Income Portfolio Management team, will oversee dollar-denominated and local currency denominated emerging markets debt, respectively.
“Many investors seeking exposure to emerging markets don’t know how much they should invest in equities, local bonds, dollar-denominated bonds, or currencies,” Mewbourne said. “The Emerging Multi-Asset strategy directly combines PIMCO’s skills in emerging markets equities and bonds while utilizing PIMCO’s asset allocation and tail risk hedging expertise, all in one compelling offering.”