Bonds You Can Build On

Learn what a global leader in active fixed income can do for you.

Why Bonds

Today, market uncertainty is no longer the exception, but the norm. In times like these, bonds matter more than ever, offering important benefits to investors.

Generate Steady Income

Earning income is an important goal for many investors, and they have often relied on bonds to help them achieve it. At over US$100 trillion, the vast global bond market offers a range of opportunities to pursue attractive income and total return potential, depending on tolerance for risk.

The Possibilities of Fixed Income: A Vast Opportunity Set

Source: BIS, PIMCO, as of 31 March 2019.

Preserve Principal and Diversify

Historically, bonds have offered greater stability than riskier investments such as stocks. Explore how bonds can help diversify portfolios and mitigate the potential impact of market volatility.

Bond Drawdowns Have Been Much Less Severe

Stocks

Worst Year: 2008

0%

Bonds

Worst Year: 2013

0%

Data source: Worst calendar year returns for the 1999-2019 period. Stocks and bonds represented by MSCI All Country World Index Net USD Return Index and Bloomberg Barclays Global Aggregate Total Return Index (USD Hedged).

Pursue Stronger Returns

While many investors are familiar with government bonds, such as U.S. Treasuries, fixed income is an immense asset class that spans the risk-reward spectrum. For skilled active managers, this universe represents a world of possibilities for pursuing return potential.

Explore Strategies

Range of Targeted Returns Compared to Expected Risk

Targeted Net Returns
Source: PIMCO. For illustrative purposes only.

At the Forefront of Fixed Income

For nearly 50 years, PIMCO has navigated shifting market conditions to become the global fixed income leader we are today.

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Woman pulling red kayak into the water

91% of Assets Outperforming For Our Clients

Above benchmark performance over a 5-year period (after fees).*

*As of 30 September 2020. SOURCE: PIMCO Based on PIMCO managed portfolios with at least a 5-years history. The after-fees performance of each portfolio was compared to the portfolio's primary benchmark. If the after-fees portfolio performance was greater than the benchmark performance for a given period, the assets in that portfolio were included in the outperforming data. Benchmark outperformance indicates the performance of a portfolio as compared to its benchmark. As such, it does not indicate that a portfolio's performance was positive during any given period. For example, if a portfolio declined 3% during a given period, and its benchmark declined 4%, the portfolio would have outperformed its benchmark, even though it lost value during the period. Certain absolute return oriented portfolios contained within the data may inflate the data either positively or negatively due to the low return/volatility characteristics of the primary benchmark. For example a portfolio measured against 3-month USD Libor would be more likely to out- or underperform its benchmark. Past performance is not a guarantee or a reliable indicator of future results.
Dog House

A Process Tested For Nearly 50 years

Our process has helped millions of investors pursue returns and manage risks over meaningful timeframes.

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ACTIVELY INVESTING TO HELP YOU SUCCEED

89% of active core bond funds outperform their benchmark – one reason we're passionate about an active fixed income approach.

As of 30 June 2020. Source: Morningstar Direct. Past performance is not a guarantee or a reliable indicator of future performance. "Core bond funds" combines the Intermediate Core + Core Plus Morningstar categories1. Based on Morningstar U.S. fund categories (Institutional shares only).
Store owners watering plants

Deepen Your Knowledge

Explore insights and resources to help you learn more about the possibilities of fixed income.

The Bolstering Effect of Fixed Income
Video

The Bolstering Effect of Fixed Income

Fixed income continues to play a crucial role in portfolios, diversifying equity risk—and active management across the array of fixed income assets can help maximize returns in a low-yield environment.

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User analyzing fund data on a tablet
Credit

Active Credit Solutions For Active Investors

For those with a long-term investment horizon, there are good opportunities to generate returns from credit.

Learn More
Sustainability in Bond Markets – Three Reasons for Optimism
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Sustainability in Bond Markets – Three Reasons for Optimism

ESG Miniseries 1 of 3: How can bond investors contribute to more sustainable financial markets? Members of our ESG investing team discuss accelerating macro trends and their reasons for optimism.

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What's Next?

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A history of excellence

Learn how we've helped investors around the world navigate decades of market change.

Who We Are

Any Additional Questions

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Disclosures

  1. INTERMEDIATE-TERM BOND
    Intermediate-term bond portfolios invest primarily in corporate and other investment-grade U.S. fixed-income issues and typically have durations of 3.5 to 6.0 years. These portfolios are less sensitive to interest rates, and therefore less volatile, than portfolios that have longer durations. Morningstar calculates monthly breakpoints using the effective duration of the Morningstar Core Bond Index in determining duration assignment. Intermediate-term is defined as 75% to 125% of the three-year average effective duration of the MCBI.
    INTERMEDIATE-TERM CORE-PLUS BOND
    Intermediate-term core-plus bond portfolios invest primarily in investment-grade U.S. fixed-income issues including government, corporate, and securitized debt, but generally have greater flexibility than core offerings to hold non-core sectors such as corporate high yield, bank loan, emerging-markets debt, and non-U.S. currency exposures. Their durations (a measure of interest-rate sensitivity) typically range between 75% and 125% of the three-year average of the effective duration of the Morningstar Core Bond Index.

A word about risk: All investments contain risk and may lose value. Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and low interest rate environments increase this risk. Reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed.

PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. Pacific Investment Management Company LLC, 650 Newport Center Drive, Newport Beach, CA 92660, 800-387-4626.

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