“Based on valuations, we went into high-yield and investment-grade before the Brexit referendum,” Ivascyn said in a telephone interview. “We’ve seen a big, powerful rally in risk assets tied to more central bank accommodation, in the wake of Brexit, so we are selling into it.”

Britain's vote on June 23 to leave the European Union, known as Brexit, has compounded an uncertain global economic outlook.

Ivascyn, who helps oversee $1.51 trillion at Pacific Investment Management Co, said he's positive on housing-related corporate credits and non-agency mortgage-backed securities because "they still have room to move higher in price."

Last week, Newport Beach, California-based Pimco made news when it poached Emmanuel "Manny" Roman from Man Group (>> Man Group PLC), the world's biggest listed hedge fund, as its chief executive officer.

Pimco has experienced several years of cash withdrawals in several of its main funds, including its flagship Pimco Total Return Fund, amid lackluster performance and executive changes. Bill Gross, a co-founder who became known as "the Bond King" during his years at Pimco and oversaw Total Return, left in 2014 for distant rival Janus Capital Group Inc (>> Janus Capital Group Inc).

Ivascyn said the hiring of Roman, who is widely credited with leading a turnaround at Man Group which included a raft of big acquisitions, does not translate into a similar path for Pimco.

"Pimco is not going on an M&A binge," Ivascyn said. "Although Manny provides great perspective on alternative businesses, he also appreciates the traditional business of fixed-income at Pimco."

Ivascyn said he has communicated with several clients and consultants about the hiring of Roman, noting it is not an unusual practice after a leadership change.

Overall, Ivascyn said investors need to acknowledge the changing landscape of the asset management business and expect some consolidation. "There are many changing forces in the financial markets as well as in asset management and we have to be prepared," he said.

Asked about the U.S. presidential elections, Ivascyn said Pimco's internal analysis of demographics and electoral map indicate odds are with a Hillary Clinton victory, even though polls continue to be fluid and "move around a lot during party conventions," as they always do historically.

"The odds are better for a Clinton victory given internal analysis of electoral map," Ivascyn said.

(Reporting By Jennifer Ablan; Editing by Leslie Adler)

By Jennifer Ablan

Stocks treated in this article : Janus Capital Group Inc, Allianz SE, Man Group PLC