Global fixed income markets provide a rich opportunity set to an experienced manager capable of identifying and implementing both top-down and bottom-up investment strategies. PIMCO is a market leader in global credit markets and has over 30 years of experience in making asset allocation decisions across numerous multi-sector bond products including the PIMCO Australian Bond Fund and the PIMCO Global Bond Fund.
PIMCO’s investment process
PIMCO’s time-tested investment process takes a disciplined approach to evaluating global macroeconomic developments and prospective trends in interest rates and relative sector performance. This exercise is anchored by PIMCO’s secular and cyclical forum process, where the firm’s investment professionals from around the globe come together to develop a medium- to long-term outlook for the global economy. This process provides the framework for the regional and sector analyses that are integral to the investment decisions within PIMCO’s Credit Strategies, and which are executed by specialists based on comprehensive bottom-up analysis.
PIMCO’s generalist/specialist structure is uniquely positioned to take advantage of the broad set of investment opportunities within global credit markets. Generalist portfolio managers are responsible for the top-down asset allocation decisions, consistent with the themes identified through PIMCO’s forum process. Credit specialist teams (for example, investment grade, high yield, bank loans and emerging markets) are responsible for designing the bottom-up investment strategies. The specialist teams from each global office identify the optimal means of gaining exposure within their sectors and are responsible for efficient local execution.
PIMCO’s Credit Strategies focus on adding potential value through effective sector rotation and incorporate a disciplined approach to credit selection. PIMCO’s philosophy and approach to global credit markets are consistent with our conservative, yet innovative, approach toward fixed income markets in general.
Specifically, the philosophy for investing in global corporate and sovereign credit markets embodies four key principles:
- Employ PIMCO’s expertise in evaluating global relative value across the fixed income market and credit spectrum
- Attempt to maximize return while preserving capital by focusing on credits demonstrating solid or improving fundamentals with the potential for capital appreciation through improvements in credit quality
- Retain upside potential on improving global economic and credit conditions while guarding against negative credit events through our disciplined, long-term assessment of underlying economic and financial fundamentals
- Diversify broadly across regions, industries and issuers as well as through the varied sources of value described below
PIMCO’s teams of corporate credit analysts and emerging markets specialists located around the globe are responsible for evaluating corporate and emerging markets credits. We place a great deal of importance on independent analysis when evaluating corporate and emerging market credits. We never rely on rating agencies alone. Our staff of seasoned credit analysts rates every credit that we hold. Our research is focused on issuers with improving credit profiles and prospects for rating upgrades and, therefore, greater capital appreciation potential. A prerequisite to our evaluating an issuer is access to management. We concentrate on issuers with strong underlying businesses and competitive positions.
PIMCO’s credit expertise can be accessed via funds and customized separate accounts that are designed to fit your investment needs. Please contact your PIMCO representative for more information.