NEW YORK, Jan 8 (Reuters) - Pimco, the bond fund manager, is expanding its presence in equity management with seven new stock strategies in partnership with asset manager Research Affiliates LLC.
The new strategies will involve investing directly in stocks, marking a change from a current partnership between the firms in their Pimco Fundamental IndexPLUS AR strategies, which invest in derivatives.
The firms aim to protect against volatility and enhance returns in the strategies by using a Research Affiliates index that picks stocks based on fundamental measures of company size rather than stock price.
The strategies will include investments in U.S. and international stocks.
Pimco and Research Affiliates have collaborated on equity management for nearly a decade, with their Pimco Fundamental IndexPLUS AR strategies including 13 funds with $30 billion in assets as of Sept. 30. Pimco had over $55 billion in total equity assets as of Sept. 30.
Pacific Investment Management Co and Research Affiliates are both based in Newport Beach, California. Pimco, a unit of Munich-based insurer Allianz SE, had $1.87 trillion in assets as of Sept. 30, according to the firm’s website.
A Pimco spokesman declined to comment on how many funds will launch under the new strategies or the firm’s future growth plans in equity management. (Reporting by Sam Forgione. Editing by Andre Grenon)