(Reuters) – Dan Ivascyn, the group chief investment officer at Pacific Investment Management Co (Pimco), said it is time for a more defensive approach at the Pimco Income Fund.
A Pacific Investment Management Co (PIMCO) sign is shown in Newport Beach, California August 4, 2015. REUTERS/Mike Blake/File Photo
The Pimco Income Fund, which is overseen by Ivascyn and managing director and portfolio manager Alfred Murata, will increase diversification and liquidity, Ivascyn said in a post on Pimco’s website bit.ly/2OSkjOn.
Ivascyn described the last 10 years as a phase of low growth, significant disinflationary pressure and relatively low volatility. He added that major central banks are attempting to step away from the “accommodation” they have given to the markets for several years.
Ivascyn described the investment environment as challenging and said it would lead to higher volatility and lower returns for equity and fixed-income investors.
The fund will continue investing in non-agency mortgage-backed securities, whose supply has risen over the past year, according to Murata.
Reporting by Kanishka Singh in Bengaluru; Editing by Cynthia Osterman