The Pacific Investment Management Company has launched the PIMCO Unconstrained Tax Managed Bond Fund, offering the firm’s active fixed income management in a portfolio that is free from benchmark constraints while also providing tax advantage opportunities for investors.
The new fund is managed by the Pacific Investment Management Company (PIMCO) managing director Chris Dialynas.
PIMCO has said that as with the PIMCO Unconstrained Bond Fund launched in 2008, the new Unconstrained Tax Managed Bond Fund fully employs the firm’s secular investment process across all fixed income markets.
Additionally, 50% of the fund’s assets are invested in municipal bonds, making a significant portion of the portfolio’s income exempt from federal, and in some cases, state taxation. The result is a tax-managed portfolio with broad scope to adjust duration, allocate across sectors and express economic views. This discretion allows the fund to use a full fixed income tool kit in ways not seen in benchmark-oriented funds, PIMCO added.
Mr. Dialynas said: Offering tax-sensitive investors a product that taps PIMCO’s active management style is another example of our firm’s evolution as a provider of global investment solutions. The Unconstrained Tax Managed Bond Fund brings out our strength and experience in fixed income management and adds a tax efficient focus.
