New fund invests in high yielding bank subordinated debt and equity-like securities
NEWPORT BEACH, CALIFORNIA (May 7, 2015) -
PIMCO, a leading global investment management firm, has launched the PIMCO Capital Securities and Financials Fund, which aims to deliver attractive yields
relative to traditional fixed income by investing in capital securities, including subordinated bonds, preferred shares and contingent capital instruments
issued by financial institutions globally. Philippe Bodereau, Managing Director and Portfolio Manager based in London, and Yuri Garbuzov, Executive Vice
President and Portfolio Manager based in Newport Beach, will manage the fund.
The fund follows the successful launch of a similar European fund that has raised over $5 billion. The strategy focuses on bottom-up security selection
across banks’ capital structures and around the globe, helped by a dedicated team of 8 bank and financial credit research analysts and 10 specialist
portfolio managers. The strategy also relies on PIMCO’s time-tested macro analysis to identify regional investment opportunities and manage downside risks.
PIMCO believes there are compelling opportunities in bank securities that sit lower in the capital structure due to the multi-year deleveraging in the U.S.
and European banking sectors and the stricter capital requirements imposed by regulators on large global financial institutions.
“The banking sector’s strong and improving credit fundamentals and the compelling absolute and relative valuations of bank hybrids should result in
attractive long-term total returns for our clients,” says Bodereau. “This strategy offers potentially higher risk-adjusted returns than equities and
high-yield debt by capitalizing on opportunities created by relative value dislocations in the U.S. and in Europe.”
Institutional shares of the PIMCO Capital Securities and Financials Fund trade under the ticker symbol PFINX. Additional shares include “P” shares (PFPNX),
“A” shares (PFANX), “D” shares (PFDNX) and “C” shares (PFCNX).