Pimco Seeks Protection From Inflation in Australia, U.S.
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Pacific Investment Management Co., which runs the world’s biggest mutual fund, favors inflation protection in Australia and the U.S., betting stimulus efforts around the world will stoke faster price increases.
“Central banks have implemented increasingly far-reaching policy measures and they are more willing to take inflation risk as a trade-off for growth and employment,” Michael Althof, a senior portfolio manager in Munich, said in a phone interview. “Index-linked bonds are good assets to have, as longer-term we think the pressure for higher inflation is there.”