Hantushin Asset Management Launches Sales of 'Korea Investment PIMCO Capital Securities Fund'

Park Yun-beom, Executive Director at PIMCO (left), and Lee Woo-sang, Deputy Manager at Korea Investment Trust Management, are presenting the fund management strategy at the Korea Investment PIMCO Capital Securities Fund webinar on the 7th.

[Asia Economy Reporter Junho Hwang] Korea Investment Trust Management will start selling the Korea Investment PIMCO Capital Securities Securities Investment Trust (hereinafter Korea Investment PIMCO Capital Securities Fund), which mainly invests in hybrid capital securities issued by major European banks, from the 8th.

The Korea Investment PIMCO Capital Securities Fund is a fund of funds investing in the PIMCO GIS Capital Securities Fund managed by the global major bond manager PIMCO. It is an attractive product for investors seeking relatively stable bond-type funds during periods of rising interest rates.

Hybrid capital securities pay interest like bonds but have no maturity or very long maturity like stocks. Since they are recognized as financial institutions' own capital, banks, securities firms, and insurance companies mainly issue them to expand their own capital. Recently, the investment environment for hybrid capital securities of major European banks is evaluated as favorable. European financial institutions have continuously improved their financial soundness and credit risk management capabilities since the global financial crisis.

Park Yunbeom, Executive Director at PIMCO, said, "Hybrid capital securities are bonds but also have characteristics of stocks, so they have low sensitivity to interest rate changes," adding, "They will be a useful alternative for investors looking to diversify their investment targets from traditional assets such as investment-grade bonds, high-yield bonds, and stocks."

Investors in this fund can expect returns equivalent to the coupon rate plus additional gains from bond price appreciation. According to PIMCO, the yield to maturity of the PIMCO GIS Capital Securities Fund was 4.85% as of the end of February. Executive Director Park added, "Since hybrid capital securities are a relatively new asset class, many investment targets are relatively undervalued," and "Profits from future value appreciation can also be expected."

The 'Korea Investment PIMCO Capital Securities Fund' charges a front-end sales fee of 1% and an annual total fee of 0.74% for Class A. Class C has no front-end sales fee and only an annual total fee of 1.24%.

This content was produced with the assistance of AI translation services.