Pimco has closed a global bond fund because it was too similar to an existing strategy, the company has confirmed.
The reason behind the closure was that the fund was no longer economically viable and the PIMCO Select Global Bond fund had overlapped with the Pimco GIS Global Bond. As a result, demand for the fund remained low.
Over three years to the end of September 2016, the PIMCO GIS Global Bond fund returned 19.03% in US dollar terms. This is compared with a rise of 15.92% by its Citywire-assigned benchmark, the Bloomberg Barclays Global Aggregate USD Hedged TR, over the same time frame.