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September 20, 2011 at 10:45 AM
PIMCO announced Tuesday it has launched the PIMCO Inflation Response Multi-Asset Fund. According to the company, the fund is for investors “looking to hedge global inflation risks and take advantage of returns that inflation dynamics offer.” It will be managed by Mihir Worah, a managing director in Newport Beach, Calif.
“A long-term trend in rising commodity prices and weakening currencies of developed nations are stoking global inflation concerns,” a company release states. “Yet many investors own assets that are not highly correlated to inflationary pressure.”
Traditional inflation hedges are often limited in scope, it continues, which may be limiting in a multi-speed world.
“The PIMCO Inflation Response Multi-Asset Fund uses a multi-asset approach to identify and hedge risk in the best way to protect against inflation and may even take advantage of it, by investing in a range of assets that might respond to different types of inflation, such as Treasury Inflation Protected Securities, commodities, emerging market currencies, real estate investment trusts and gold,” the statement says. “PIMCO actively manages the asset allocation and underlying investments and incorporates tail risk hedging strategies intended to limit the impact of severe market shocks.”
