PIMCO has an established track record in managing global fixed income assets and today is one of the largest active global bond managers in the world, with nearly 30 years of experience in non-U.S. markets. We manage about 200 dedicated global portfolios representing approximately US$94.4bn billion in assets under management (as of September 2015).
In the U.S., we introduced our first public non-U.S. mutual fund in 1992. Today, in addition to institutional separate accounts, we offer an extensive range of global fixed income funds across mutual fund complexes in Australia, Ireland, the Cayman Islands and Bermuda.
The global market’s expanded opportunity set leverages PIMCO’s core competencies. As one of the world’s largest asset managers, we have devoted extensive resources to developing our expertise across the fixed income sectors. With nearly 40 dedicated global portfolio managers, 50+ global credit portfolio managers, 60+ global credit analysts and offices in 12 countries throughout the Americas, Europe and Asia, PIMCO benefits from specialists on the ground providing valuable strategy input as well as insights into local and regional macroeconomic developments and policy reactions. Global trading offices in London, Munich, Singapore, Sydney and Tokyo facilitate the efficient execution of investment strategies in local markets.
PIMCO’s investment process
PIMCO’s approach to global bond management seeks to outperform a broad fixed income benchmark (e.g., JPMorgan GBI Global Index or the Barclays Global Aggregate Index) on a consistent basis, while maintaining overall risk similar to the index. We are investors for the long run and look to take advantage of the full opportunity set offered by today’s global bond markets.
Our approach centers on four key principles:
- Long-term orientation. PIMCO believes that focusing on long-term trends offers the greatest opportunity to add value relative to the overall market, which is largely preoccupied with short-term factors. Through a disciplined focus on the firm’s cyclical and secular views PIMCO is better able to identify long term value and prevent the firm’s trading decisions from being overly influenced by emotion and short-term market sentiment.
- Broad universe. PIMCO is committed to implementing the firm’s approach by selecting from a broad universe that includes conventional fixed income sectors as well as newer less traditional sectors, including high yield, emerging market debt and inflation-linked bonds. PIMCO believes that a broad opportunity set not only provides us with greater potential to enhance returns, but also enables us to reduce portfolio risk through greater diversification.
- Multiple strategies. PIMCO believes that a diversified approach to adding value should deliver more consistent results. The firm employs multiple concurrent strategies and takes only moderate risk in each, thereby seeking to reduce the risk of poor performance arising from any single source. Strategies utilized may incorporate duration management, yield curve or maturity structuring, sector rotation and bottom-up techniques including those driven by the firm’s in-house credit and quantitative research.
- Keen focus on risk management. Risk management is a major emphasis at PIMCO and has been a cornerstone of the firm’s investment philosophy since inception. PIMCO measures and manages portfolio risk by focusing on a series of factor based risk measures that captures each portfolio’s positioning relative to its benchmark. The firm believes that successful risk management demands constant reassessment of the investment landscape and an ability to anticipate the evolution of markets and potential shifts in risk frameworks.
Our investment process capitalizes 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.
The Global Portfolio Management Team, comprising the CIO for global fixed income, the head of the global trading desk, the head of the European rates desk and the head of Japan portfolio management, draws on the rigorous bottom-up research of our global credit analysts as well as on-the-ground insights from regional specialists. Our close connection to specialist desks around the world contributes significantly to our ability to generate bottom-up alpha.
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 Separate Account
- Minimum investment: $100 million
- Specially tailored investment guidelines and benchmark
- Designated investment professional
PIMCO Fund Investment
- Minimum investment: $50 million
- Fixed investment guidelines
- Total Return fixed income management style
- Choice of two different funds