| Investment Style |
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PIMCO manages CommodityRealReturn portfolios by combining a position in commodity-linked derivative instruments backed primarily by a portfolio of inflation-indexed securities. This provides a Double RealTM response to inflation rates and changes in inflation. Other fixed income instruments may also be used tactically in the portfolio. The commodity-linked derivatives capture the price return of the commodity futures market, while our active management of the fixed income assets seeks to add incremental return above those markets, along with additional inflation hedging. If our active management of the fixed income portion of the portfolio outperforms, we generate an incremental return over the commodity markets. CommodityRealReturn strategy combines the benefits of the commodity markets with the potential for additional real returns, at lower volatility of relative performance than is commonly associated with fully active commodity management styles. |
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| Benchmark |
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Dow Jones-AIG Commodity Index. |
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| Portfolio Duration |
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Duration will vary based on PIMCO’s forecast for interest rates and under normal circumstances will be similar to the Barclays World Government Inflation-Linked Bond Index duration. |
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| Market Sectors
Utilized |
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Government, Corporate, Mortgage, Asset Backed, Money Market, Emerging Markets, Inflation Linked, Hedged International, Equities and Convertible Securities. |
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| Value Added |
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CommodityRealReturn seeks to add value through multiple sources including:
Duration Management
Active Yield Curve Management
Sector Rotation
Bottom Up Techniques to Identify Undervalued Securities
Quantitative Research
Credit Research
Volatility Analysis
Cost Efficient Trading |
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| For more information, please go to the
Contact Us page. |
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