PIMCO has soft-launched a Ucits III fund that will mainly allocate to asset-backed securities (ABS) and mortgage-backed securities (MBS), Financial Times reports. The Select U.K. Income Bond fund is managed by Mike Amey, managing director at PIMCO.

The new vehicle will invest in a range of fixed income investments to achieve higher levels of income in a low interest rate environment. About 50% of the fund’s assets are in ABS and MBS, 30% in investment grade credit, with the largest individual weights to U.K. bonds, 10% in high yield and 10% in emerging market debt, adds Investment Week.

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