Pimco cuts overweight position on emerging market equities

LONDON: PIMCO said on Thursday said it had cut its overweight position in emerging market equities on concerns over US trade policy under President-elect Donald Trump.

"We've cut our EM overweight down to neutral given the heightened risk of protectionist and anti-trade policies in the US," PIMCO portfolio managers said in a note, adding that the fund remains slightly overweight emerging market debt.

The fund also said it had pared its "modest underweight" position on equities overall to a neutral position.

The world's largest bond investor also said it saw US inflation-linked government bonds as the new "risk free" asset rather than fixed-rate US Treasuries.