Managed by London-based Philippe Bodereau, the fund sits in Pimco’s Ucits-compliant Dublin-registered Global Investor Series fund range.
It will invest primarily in subordinated, hybrid and contingent convertible bonds. The global strategy is billed as a route to capitalise on the re-regulation trend across financials.
The firm claims Bodereau has been managing assets under this strategy since July 2011, returning 12.29% annualised since inception, outperforming Libor by 11.92%.
The strategy has the flexibility to allocate across the entire capital structure, based on the team’s assessment of risks and relative value. In addition, it says investing in bank capital may offer investors enhanced levels of portfolio diversification and low correlation with interest rates.
Bodereau said: “As the global banking sector continues its multi-year deleveraging journey, the market environment remains conducive to the appreciation of capital securities. Moreover, increased banking regulation should lead to fewer bank failures due to rapidly improving capital buffers.
“The Pimco GIS Capital Securities Fund invests in those financial issuers where our strong team of 16 dedicated traders and analysts find the best opportunities and has the strongest convictions.”
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