This will be the first multi-asset fund from Pimco available to UK investors and joins a small number of its "Select Range" funds currently offered via various platforms.
The multi-asset fund for St James’s Place will be managed by Mohammed El Erian, CEO and co-CIO at Pimco, alongside portfolio managers Curtis Mewbourne and Vineer Bhansali.
This team already manages the Pimco Select Global Multi-Asset Fund, using a strategy with an established three-year institutional track record.
According to Pimco, the fund uses a three-in-one asset allocation solution and aims to achieve an average annualised return of 8% to 10% and to materially outperform UK RPI.
The three steps used during the process are to "build beta, add alpha and hedge against severe market outcomes".
The Pimco Select funds currently available to UK investors through platforms are:
- The Pimco Select Global Bond Fund, managed by Scott Mather, which is available through Skandia, Aegon and the Fidelity FundsNetwork;
- The Pimco Select UK Corporate Bond Fund, run by Luke Spajic, also available through Skandia, Aegon and the Fidelity FundsNetwork;
- The Pimco Select UK Income Bond Fund, which is currently only available through Fidelity FundsNetwork.
The inclusion of the Pimco Select Global Multi-Asset Fund will mean the largest Pimco retail range in the UK is on the Fidelity FundsNetwork.So far, there is no confirmation of the fund listing on any other platforms.
A spokesperson for Pimco, said: "This is all part of our strategy to evolve from being a US-based institutional facing asset manager, to a global asset manager with a retail and institutional focus. We have been in the UK now for 12 years, but we have traditionally been working on pension funds and on an institutional remit."
The multi-asset fund also demonstrates an attempt by Pimco to develop its equity offering and move away from being seen solely as a fixed income manager.
Expansion on the horizon
Pimco said it was in discussions with other platforms to further widen its distribution and added it would never target investors directly and would work to build up traction with the intermediary market alone.
Alongside the Pimco fund, St James’s Place is due to launch a Global Equity Income Fund, managed by Paul Boyne at Invesco Perpetual and an Index-Linked Gilts Fund, run by Francis Rayner at BlackRock.
It is unclear how closely these funds will mirror the funds already run by the managers for their own companies, but they will all be available from 6 February.
Pimco has also partnered with Source to offer a range of ETFs in Europe.