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| PIMCO Total Return Mortgage Strategy |
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| Investment Style |
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 Scott Simon Discusses the Outlook for the U.S. Housing and Mortgage Markets
The state of the U.S. housing market continues to play a dominant role in the overall economic outlook. In the following interview, Scott Simon, managing director and head of mortgage- and asset-backed securities portfolio management at PIMCO, discusses the current situation in the housing and mortgage markets; the potential effects on the markets of the various government programs and loan modifications; the outlook for mortgage rates, home prices, inventories and foreclosures; and the current value in Agency mortgage-backed securities Treasuries. More>>
Total Return Mortgage is an actively managed bond portfolio that invests primarily in high quality U.S. mortgage-backed securities of varying maturities. Total Return Mortgage seeks maximum total return, consistent with preservation of capital and prudent investment management. |
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| Benchmark |
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Barclays Capital Mortgage-Backed Securities Index |
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| Portfolio Duration |
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Duration is managed between one and seven years. |
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| Market Sectors
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Government, Mortgage, Agency, Asset-Backed, Money Market, Inflation-Linked. |
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| Value Added |
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Total Return Mortgage seeks to add value through multiple sources including:
- Yield Curve or Maturity Structuring
- Bottom Up Techniques to Identify Undervalued Securities
- Duration Management
- Cost Efficient Trading
- Quantitative Research
- Credit Research
- Volatility Analysis
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Contact Us page. |
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Past performance is not a guarantee or a reliable indicator of future results. Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk. Investing in non-U.S. securities involves heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and while generally backed by a government, government-agency or private guarantor there is no assurance that the guarantor will meet its obligations. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested.
The Barclays Capital Mortgage-Backed Securities Index is composed of all fixed-rate securitized mortgage pools by GNMA, FNMA, and the FHLMC, including GNMA Graduated Payment Mortgages. Prior to November 1, 2008, this index was published by Lehman Brothers. It is not possible to invest directly in an unmanaged index.
This material has been distributed for educational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Pacific Investment Management Company LLC, 840 Newport Center Drive, Newport Beach, CA 92660. ©2008, PIMCO.
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