Pimco, the Californian specialist fixed-income manager, announced today, from its London offices, that it has partnered with Goldman Sachs to launch a range of derivative products based on Pimco’s All Asset Strategy.These derivative products will include both principal protected and leveraged structures, through a variety of derivative payouts. Pimco says they will provide access to returns from traditional and alternative asset classes, with added structured product flexibility, including catering for different risk appetites, delivery formats and structural variations.
At the heart of the proposed new offering is a principal protected structure using Goldman Sachs’ own take on CPPI (constant proportion portfolio insurance) , called VPPP (variable proportion portfolio protection), which it says allows for full initial participation to the All Asset Strategy and puts less pressure on the manager as well as catering for shorter maturities.
The products will be aimed globally at institutional investors as well as high net worth individuals and private banks that may not be able to buy directly into alternative asset classes.
Pimco’s All Asset Strategy itself uses a dynamic asset allocation process to invest in a range of underlying Pimco funds, rather than in individual securities.
