Real interest rates are adjusted to remove the effects of inflation. As inflation continues to fall, real rates "can fall much further" and will remain relatively low even if the Fed inches them higher, Mather said.
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Mather believes the trend will bode well for the Pimco RealEstateRealReturn Strategy Fund. The fund is linked to real estate investment trusts and backed with Treasury Inflation-Protected Securities.
It has yielded a roughly 11 percent return year to date, according to Pimco. Although the fund's strategy is typically associated with rising inflation, it will continue to do well in a low real rate environment, Mather argued.
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