More companies are coming up with ways to provide retirement income to clients and PIMCO is no exception: Today the firm announced it has launched the PIMCO Real Income Funds, mutual funds that are designed to provide retirees a steady stream of monthly income that is hedged against inflation.

The funds use a laddered portfolio of primarily Treasury Inflation-Protected Securities, or TIPS, and are intended as an anchor for investors' retirement portfolios. The funds will initially be offered in two maturities, 2019 and 2029, and are designed to provide monthly distributions of principal and interest so that all assets will be distributed upon maturity. Investors receive regular payouts until all the securities mature at a set target date (10 years or 20 years in the first two Real Income Funds). PIMCO Senior Vice President and Portfolio Manager Gang Hu will manage the funds.