The latest in funds and investments around the world.

PIMCO, the fixed-income management firm with $1.76 trillion of assets (as at 31 March), has launched the PIMCO GIS Emerging Markets Opportunity Fund. 

PIMCO said that the fund applies a flexible approach - investing in a wide range of fixed income securities issued by companies or governments economically tied to emerging market countries. The fund seeks diversification benefits, while reducing volatility and providing investors with a more stable stream of returns over a full market cycle compared with traditional emerging markets' beta strategies.

The fund is managed by Pramol Dhawan, head of the emerging markets portfolio management team. 

“Emerging markets' debt is an inherently inefficient asset class due to factors such as incomplete information, periods of diminished market liquidity and relative value distortions. We aim to harness these inefficiencies by capturing most of the upside potential of the asset class while limiting the downside,” Pramol Dhawan said.

The fund is available in multiple currency share classes. PIMCO’s UCITS-compliant Global Investor Series (GIS) fund range comprises 61 sub-funds with $158.6 billion under management as of 31 March 2019. 

The firm, which is based in California, recently announced the appointment of behavioural finance luminary Dr Richard Thaler, a Nobel Prize winner, as an advisor, underscoring the salience of this subject in modern investment management. This publication will be running a series of articles about the topic in coming weeks.