In an interview with Citywire Selector’s sister site Citywire USA, Ivascyn downplayed suggestions that the rapid growth in the fund he oversees with Citywire AA-rated Alfred Murata means it is the company’s top strategy.
‘In and of itself it means nothing to us and I personally don’t love the term flagship,’ Ivascyn said: ‘I’ve been at Pimco almost two decades and in the industry a little longer than that. Strategies will be in vogue from time to time.
‘You’ll see demand shift as client needs evolve. You will see some funds get bigger and some get smaller. The one thing I am confident about is, if you provide good risk-adjusted returns over time and a strong product to investors, you will see positive flows.’
Total assets in both the US-domiciled fund and its Ucits equivalent, grew to $79.1 billion as of the end of March, up from $53.1 billion in January last year. This saw it surpass the Total Return fund, which is at $73.6 billion down from a peak of $293 billion in April 2013.
Ivascyn said the Total Return fund had suffered since lead PM Bill Gross left the firm but highlighted how his successors, Mark Kiesel, Scott Mather and Mihir Worah had responded to a challenging transition.
‘They navigated the challenging past few years very well,’ he says. ‘There were periods where we could have done better, but that’s always the case. I am very excited about their performance, particularly their recent performance since the election and during this period of rising rates.’
To read the interview in full – which includes Ivascyn’s views on post-Gross Pimco, his defensive outlook and his emerging market hot spots – please visit Citywire USA here.