The strategy is designed to offer the traditional benefits of a core bond approach – capital preservation, liquidity and diversification – but with higher alpha potential and the opportunity to mitigate downside risk to a greater degree than what is reasonably possible from traditional active fixed income management approaches.
The PIMCO Unconstrained Bond Strategy capitalizes on PIMCO’s almost four decades of active bond management experience and extraordinary breadth and depth of global fixed income expertise. The strategy also directly benefits from the innovation and rigorous focus on risk management that has been a hallmark of the firm’s success.
The PIMCO Unconstrained Bond Strategy is governed by PIMCO’s investment philosophy and unique, disciplined secular investment process, which focuses on long-term economic, social and political trends that may have lasting impacts on investment returns. Moreover, over shorter cyclical time frames, the unconstrained nature of the strategy allows PIMCO to take on more risk when PIMCO identifies tactical opportunities, and it allows for reduction and diversification of risk at times when the outlook may be more challenging for traditional fixed income benchmarks.
The PIMCO investment process starts with the PIMCO annual secular forum during which the firm develops its 3- to 5-year outlook for the global economy and interest rates. Quarterly meetings are then held to discuss how the outlook applies to upcoming 3- to 12-month periods and to forecast specific influencing factors, including but not limited to interest rate volatility, yield curve movements and credit trends. Taken together, these sessions set the firm’s basic views on duration, yield-curve positioning, sector weighting and credit quality. Bottom-up strategies, including credit analysis, quantitative research and individual issue selection are then taken into account in conjunction with the top-down strategies in actively selecting the Unconstrained Bond Strategy portfolio positions, with careful consideration given to the dual objective of providing an attractive risk-adjusted return and mitigating the risk of capital losses over the long-term.
Past performance is not a guarantee or a reliable indicator of future results. All investments contain risk and may lose value. Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. PIMCO strategies utilize derivatives which may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio. There is no guarantee that this investment strategy will work under all market conditions and each investor should evaluate their ability to invest for a long-term especially during periods of downturn in the market. Diversification does not ensure against loss.
The information on this web site is for residents of Europe only.
All material contained on the Exchange-Traded Funds section of this website is purely for informational purposes only and is not intended as investment advice. Investors should seek financial advice before making any investment decisions.
The products and services are available only to residents of those jurisdictions. The information on this web site does not constitute an offer for products or services, or a solicitation of an offer to any persons outside of Europe who are prohibited from receiving such information under the laws applicable to their place of citizenship, domicile or residence. Copyright ©2017 PIMCO Europe Limited. All rights reserved.
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