SOURCE: PIMCO

PIMCO

September 15, 2010 08:00 ET

PIMCO Launches High Yield Spectrum Fund

Offers Potential for Attractive Returns Across the Full Spectrum of the Global High Yield Market

NEWPORT BEACH, CA--(Marketwire - September 15, 2010) -  PIMCO, a leading investment solutions provider, has launched the PIMCO High Yield Spectrum Fund, an actively managed portfolio that aims to take advantage of the full global opportunity set of high yield securities. The fund is managed by Andrew Jessop, executive vice president and global head of PIMCO's high yield portfolio management group.

The PIMCO High Yield Spectrum Fund offers both institutional and individual investors the potential for enhanced returns through a global exposure to the full high yield credit quality spectrum. At the same time, PIMCO's proven credit research capabilities seek to mitigate risks presented by some lower credit-quality bonds. Overall, the fund may serve as a component in the global investment solution for pension plans, insurance companies, and other investors seeking returns in a still uncertain New Normal environment.

"Over the last several years, the global high yield market has grown considerably," said Mr. Jessop. "The PIMCO High Yield Spectrum Fund will deploy our extensive experience in the high yield market, consistent and proven investment process and breadth of global resources to pursue opportunities in all regions and credit quality tiers."

Potential benefits of the PIMCO High Yield Spectrum Fund include:

  • A global and full high yield credit quality benchmark (The Bank of America/Merrill Lynch Global High Yield Constrained Index) and scope that offers the potential for improved diversification and select opportunities to enhance returns. The global high yield universe is over 20% larger than the U.S. high yield market.
  • A focused high yield investment strategy in which security selection is expected to be the primary driver of returns.
  • PIMCO's risk management and high yield credit investing expertise.

The fund's Institutional shares trade with the ticker PHSIX. Additional tickers include "A" shares (PHSAX), "C" shares (PHSCX), "D" shares (PHSDX), and "P" shares (PHSPX).

About PIMCO
PIMCO, founded in 1971, is a global investment management firm serving a full range of institutional and retail investors worldwide. Our reputation as one of the world's top asset managers rests on our combination of a long-term investment approach, superior client servicing and cutting edge technology. With offices in ten countries in North America, Europe and Asia, we manage investments across a full spectrum of global financial markets. Our success is built on our goal of consistently providing attractive returns while maintaining a strong culture of risk management and long-term discipline. PIMCO is owned by Allianz Global Investors, a subsidiary of the Munich-based Allianz Group, a leading global insurance company.

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund's prospectus and summary prospectus, if available, which may be obtained by contacting your PIMCO representative. Please read them carefully before you invest or send money.

Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk; investments may be worth more or less than the original cost when redeemed. High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio.

The value of most bond funds and fixed income securities are impacted by changes in interest rates. Bonds and bond funds with longer durations tend to be more sensitive and more volatile than securities with shorter durations; bond prices generally fall as interest rates rise.

Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO's sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

The BofA Merrill Lynch Global High Yield Constrained Index is an unmanaged index of below-investment grade bonds of corporate issuers domiciled in countries with investment grade foreign currency long-term debt rating (based on a composite of Moody's and S&P). The index includes bonds denominated in U.S. dollars, Canadian dollars, sterling, and euros (or euro legacy currency), but excludes all multi-currency denominated bonds. It is not possible to invest directly in an unmanaged index.

This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Pacific Investment Management Company LLC. ©2010, PIMCO.

PIMCO funds are distributed by Allianz Global Investors Distributors LLC, 840 Newport Center Drive, Newport Beach, CA 92660, (800) 927-4648.

Contact Information

  • Mark Porterfield
    PIMCO -- Media Relations
    949-720-6397