Pimco’s Top-Performing Fund Eyes Asian AI Leaders in Chips and Rare Earths

Emmanuel Sharef, overseeing Pacific Investment Management Co.’s Balanced Income and Growth Fund, suggests a surge in artificial intelligence (AI) developments centered around Asian stocks. The $19 billion fund, outperforming 97% of peers in the last three years, is attracting affluent clients from Taiwan, Hong Kong, Singapore, and mainland China. Sharef notes the fund’s strategic underweighting of hyperscalers and the Magnificent Seven due to escalating AI investments straining balance sheets and valuation justifications. He emphasizes that owning pricey stocks isn’t essential to capitalize on market trends. The 60/40 Balanced Income and Growth Fund is shifting focus to companies involved in data…