Following the announcement that Mike Amey is retiring at the end of June 2019, we have removed PIMCO Select UK Income Bond fund from our Recommended list.

The PIMCO Select UK Income Bond fund is part of a suite of income-orientated bond funds offered by PIMCO.  Mr Amey is responsible for sterling portfolios and has managed the PIMCO Select UK Income bond fund since 2011, working closely with sterling credit manager, Ketish Pothalingam.  The income suite includes, Eve Tournier, who manages European credit funds, including the PIMCO GIS Euro Income bond fund, and Daniel J. Ivascyn, Group Chief Investment Officer and lead portfolio manager of the firm’s income strategies, including the PIMCO GIS Income fund.

Going forward, Ms Tournier, Mr Pothalingam and Mr Balls (CIO for Global Fixed Income) will be responsible for the PIMCO Select UK Income Bond fund.  They will work closely with the broad Global Income team in search of the best opportunities from across both UK fixed income markets and global fixed income markets.

There are no plans to change the investment philosophy or the process underpinning the fund.  This is a diversified, income-focused bond fund, that is flexibly managed according to a clear, over-arching risk framework.  Income generation is a priority, but not at the expense of capital volatility.  Under his stewardship, Mr Amey has been successful in delivering a stable and sustainable income distribution yield, in a range of 3-4% pa, with distributions paid monthly.  In our view, his ability to both inform and shape PIMCO’s established macroeconomic process in a way that was suitable for the UK market were major factors in the fund’s appeal.

As a result, we have removed the fund from our Recommended list in order to re-assess under the new management team.  In the meantime, we send Mr Amey our best wishes for the future.  To see our other recommendations in the IA £ Strategic Bond sector, please see our IA Sector Overview.