PIMCO Launches Retirement Income Solution
PIMCO has launched the PIMCO Real Income Funds, mutual funds designed to provide retirees a steady stream of monthly income hedged against inflation.
According to a press release, the funds utilize a “laddered” portfolio of primarily Treasury Inflation-Protected Securities (TIPS). The funds will initially be offered in two maturities, 2019 and 2029, and are designed to provide monthly distributions that consist of both inflation-adjusted interest and principal.
Investors receive regular payouts until all the securities mature at a set target date: 10 years or 20 years in the first two Real Income Funds.
PIMCO Senior Vice President and Portfolio Manager Gang Hu will manage the funds, PIMCO said.
PIMCO Funds are distributed by Allianz Global Investors Distributors LLC.