US-based Pacific Investment Management has launched the new PIMCO Long-Term Credit Fund, an actively managed portfolio that intends to take advantage of opportunities in long-dated investment grade corporate bonds.
The fund is managed by Mark Kiesel, managing director and global head of Pacific Investment Management’s (PIMCO’s) corporate bond portfolio management group.
According to PIMCO, the PIMCO Long-Term Credit Fund is designed to offer investors a way to benefit from the attractive yields available on longer-dated corporate debt. It also offers a tool for pension plans, insurance companies and other investors that are engaged in efforts to better match their assets to their long-term obligations, an approach broadly known as liability-driven investing.
Mr. Kiesel said: The Long-Term Credit Fund aims to give investors appropriate access to corporate bond yields that are currently at or near historic highs. Actively and prudently managed long-term credit can also potentially offer lower volatility than equities and attractive income.
The extreme volatility in equities and other investments resulting from the financial crisis has left many investors unprepared to meet their goals and highlights the need for a closer assessment of high-quality long-dated corporate bonds in a portfolio.
