- "One strategy is to look at closely correlated economies where rates are not repressed," says Scott Mather, one of the new co-managers of the Pimco Total Return Fund (MUTF:PTTAX), describing what he's focused on to create alpha.
- Mexico, he says, is an example. The yield curve is one of the world's steepest, thus offering the ability to profit by rolling down. A lot of investors continue to throw Mexico into the emerging market bin, but the country, says Mather, is far closer to a developed market.
- Sectors to avoid? Agency MBS, says Mather. It's normally an area where the team likes to be overweight, but it's underweight now as the Fed - which bought up most of the supply in recent years - gets out of the business.
- Additional Pimco Total Return Fund share classes:PTTPX, PTTRX, PTTBX, PTTCX, PTTDX, PTUPX,PTUZX, PTUCX, PTUIX