Bond fund manager PIMCO Australia has launched the Global Credit Fund, which will invest in a diversified portfolio of predominantly investment grade global bonds.
The fund may also target mortgage and asset backed securities, as well as below investment grade and emerging market securities carrying a minimum B rating, as determined by credit agencies Moodys or Standard and Poor’s.
PIMCO CEO John Wilson says: “The fund was developed due to increased demand from Australian institutional and super funds for products that provided exposure to global non-government debt.”
The fund will start life with $165 million and be predominantly aimed at the wholesale market, providing the opportunity to invest in a broader array of securities and market sectors than are available in Australia.
The fund’s benchmark will be the corporate component of the Lehman Brothers Global Aggregate Bond Index hedged in Australian dollar terms.
It requires a minimum investment of $500,000, with no minimum amount set for subsequent applications.
