PIMCO has partnered with a financial technology company to enhance its quantitative research and analytic capabilities into its investment process.
Part of the partnership sees PIMCO acquiring a minority stake in cloud-based integrated data and financial analytics platform Beacon.
PIMCO will integrate with the platform for its valuation models, risk analytics and technology, which will then be deployed globally to support 240 portfolio managers, including Australia.
It will then license the Beacon platform to aid delivering quantitative research and analytics.
PIMCO chief executive Emmanuel Roman said: "Quantitative models and technology are integral to PIMCO's investment process and this strategic partnership with Beacon will allow us to continue to innovate and evolve as the industry changes."
"Our portfolio managers around the world will have broad access to Beacon's platform for faster and more efficient use of PIMCO's proprietary risk analytics and quantitative research, helping them implement investment strategies to deliver attractive returns for our clients," he said.
In an effort to advance its investment-related infrastructure, PIMCO recently announced it will open an office in Austin, Texas later this year in part to recruit technologists.
Beacon co-founders Kirat Singh and Mark Higgins said the New York-based tech firm is excited to partner with PIMCO at a time when a seismic shift in technology has created opportunities to better access and deploy analytical investment models.
In mid-March, PIMCO said it is winding down its exposure to Australian banks and certain real estate investment trusts as risks increase in these investments
PIMOC portfolio manager Aaditya Thakur and credit research analyst John Dwyer said that while PIMCO remains "constructive on Australian credit thanks to favourable macroeconomic conditions and continued positive technicals," the group is less rosy on the above sectors as well as utilities and retailers.
This is because, the report explained, the valuations suggested by tight credit spreads and very low volatility are close to fully pricing in the "good news" implied by above-trend global growth and "gently rising inflation."
Exacerbating this is the wider global trend of central banks tightening monetary policy.