With all eyes on the Federal Reserve Wednesday, Pimco's Scott Mather said he's staying focused on the central bank's ongoing policy normalization and the divergence between the Fed and its counterparts around the world.
The Fed's statement at the end of its two-day meeting Wednesday offered no changes to its zero interest rate policy. All calendar references in regard to when it may begin to raise rates also were removed.
Mather expects those rate hikes to start this summer, likely late or in September. That's at odds with the quantitative easing happening globally.
"That means that one has to be a little bit more careful when taking bond risk in the U.S. It's one of the reasons we're underweight U.S. duration and look for other ways to take bond risk and earn additional yield in the portfolio," Pimco's chief investment officer of U.S. core strategies said in an interview with "Power Lunch."
Volatility will also continue to be an ongoing feature of the marketplace, he added.
"We've had more volatility in many different sectors of the marketplace for the past six months. That continues. So we're looking for ways to benefit from that too," Mather said.
Meanwhile, he said the addition of former Fed Chair Ben Bernanke as a senior advisor at Pimco continues a long tradition of the firm engaging macro thinkers and policymakers.
"It's hard to find a more well-respected and macro thinker than Ben Bernanke," he said. "We think he has a lot to offer in terms of our thinking and in terms of position our macro thought process."
Bernanke, who is also consulting for the hedge fund Citadel, told Reuters on Wednesday he will restrict his Wall Street advisory roles to just the two firms.
Both Pimco, which oversees $1.59 trillion in assets as of March 31, and Bernanke declined to say how much he would be paid. Bernanke will be attending every Pimco quarterly meeting of top executives.
"He'll be participating in our most important strategy meetings, to set our policies for where we think portfolios should be positioned," Mather said.
—Reuters contributed to this story.