Karin Anderson: In the world-bond fund landscape, we really like PIMCO Global Bond and PIMCO Foreign Bond. The difference between these two strategies, which are run by the same team, is that PIMCO Global Bond offers some exposure to U.S. bonds and PIMCO Foreign excludes U.S. debt.
These two funds also come in unhedged or U.S. dollar-hedged versions, depending on whether you want full exposure to non-U.S. currencies or you want all currency exposure hedged back to the dollar. When you do hedge exposure back to the dollar, you're getting a much less volatile performance.
From a sector perspective, the team invests in government and agency debt, corporates, inflation-linked bonds, and securitized debt. So, these funds really harness the full breadth and depth of PIMCO's investment teams.
The same manager is behind all the funds. Andrew Balls picked up the baton from Scott Mather in September 2014 and has kept the funds in pretty good shape since then. Andrew has a very long track record on other global and non-U.S. bond mandates at PIMCO and is their global CIO of fixed income.
So, we really like the team that's involved and, over time, these funds have done very well versus similar peers and versus their benchmarks.