The PIMCO Aussie Focus Fund is designed to deliver a return of 200 basis points over the benchmark.
The fund will allocate half of its portfolio to cash and the other half will invest in securities in the UBS Composite Benchmark.
Depending on market movements, this will give investors the option of either taking a short position by investing in cash or taking a long position by investing in bonds.
"The fund will give investors flexibility as well as the ability to invest in a wide range of high-quality assets in the Australian fixed income sector," PIMCO senior vice president Peter Dorrian said.
In the wake of the credit crisis, investors were now looking at more traditional approaches to fixed income, Dorrian said.
Investors around the globe were increasing their allocation to bond funds, according to research firm EPFR Global.
All bond funds tracked during the week of 8 April received net inflows of $1.8 billion.
