An allocation to global bonds may be beneficial as part of a diversified portfolio. Global bonds may form part of a traditional core bond allocation and can provide qualities investors seek in fixed income: broad diversification, capital preservation and steady total returns. Portfolios invested across many bond markets may also offer significant diversification benefits and can provide a hedge against risks in other asset classes, such as equities, particularly in times of economic uncertainty.
An allocation to a PIMCO global bond strategy can also be used in an effort to help to preserve investors’ capital, provide a steady source of income and, due to the increased opportunity set afforded by the global markets, potential for capital gains. By investing in high-quality developed countries across the globe, PIMCO provides diverse exposure to multiple economies, interest rates and yield curves, which may enhance return potential, reduce overall portfolio volatility and help mitigate the threat of rising global interest rates.
Our investment process capitalises on the breadth of PIMCO’s global resources and integrates the best ideas from around the world. The process is anchored in our Secular and Cyclical Forums, with the Investment Committee – informed by regional portfolio committees – setting broad strategy parameters and implementation guidelines. It is our process, not individuals working in isolation, that determines our investment positioning. We examine opportunities in four key areas: global bonds, currencies, cash management and relative value strategies. This is important because opportunities in global markets show up in different places over time. The ability to use a variety of tools may increase returns as well as reduce risk relative to the benchmark, lessening concentration in the sources of returns that contribute to performance.
PIMCO has an established track record in managing global fixed income assets and today is one of the largest active bond managers in the world, with nearly 30 years of experience in global markets. We manage around 200 dedicated global portfolios representing almost US$100 billion in assets under management (as of September 2015). PIMCO offers an extensive range of fixed income funds to Australian investors that provide access to a myriad of global opportunities, from both broad to sector specific exposure.