The PIMCO Global Multi-Asset Fund, a new asset-allocation mutual fund that incorporates hedges against extreme market risks, was launched today, PIMCO said in a news release.
Mohamed A. El-Erian, Co-CIO and Co-CIO Vineer Bhansali, managing director and head of the Portfolio Management Analytics Group; and Curtis Mewbourne , managing director and portfolio manager, will oversee the fund. Mr. El-Erian will be team leader.
The fund hopes to consistently outperform the typical 60%-40% stock/bond allocation over a market cycle, the release said. The fund includes a combination of beta and alpha exposures and seeks to hedge against "tail risk" - large shocks to markets that are considered unlikely by investment models.
"The Global Multi-Asset Fund is designed to tap into PIMCOs complete views across risk exposures and asset classes, both in the U.S. and abroad," Mr. El-Erian said in the news release.