LONDON PIMCO said on Thursday said it had cut its overweight position in emerging market equities on concerns over U.S. 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 U.S.," 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 U.S. inflation-linked government bonds as the new "risk free" asset rather than fixed-rate U.S. Treasuries.
(Reporting by Abhinav Ramnarayan, Editing by John Geddie)