Preserving a long-term record

Pimco Europe offers a diversified range of Ucits III funds, which are available in a number of currency-hedged share classes. A growing percentage of this fund complex is now owned by the institutional remarketing segment. “We have sold virtually every single product, emerging markets, high yield, inflation linked, real return, in addition to Euro bond and US total return which are core markets and will always be the biggest pot,” says Mr Thompson. Asked about which products they are relying on for their push into Europe he says, “It is difficult to say, as we have got 96 per cent of our products outperforming the benchmark over a three-year period,” he claims. “We tend to be a long-term investor and outperform over three year, although we may not necessarily be the best performer year on year. A lot of managers take big bets and when they go against them, they ruin their three or five year track records.” The structured products business has also grown in importance. “We tend to work in partnership to find good structured products. We try to diversify our business so we are not subject to any downturns in different scenarios.” The majority of the sub-advisory mandates they have won are to manage total return products, mainly Euro, US and UK total return.