Assets under management in emerging fixed income strategies (USD as of 12/31/2023)
Specialized and strictly devoted to emerging market portfolio management
Covering emerging markets credit research
There are three compelling reasons to consider emerging market (EM) debt today – and four key reasons why we think PIMCO is well-positioned to be your information source for EM. Learn about the opportunities we see and the potential benefits of our EM platform.
Gain insight from our ability to cover this resource-intensive asset class with a global team, 24-hour coverage and strong issuer relationships.
Wield top-down expertise from our investment committee, global advisory board and regional portfolio committees to guide the EM investment narrative in a global context.
Aim to identify extreme events and calibrate sensitivities with our quantitative analytical models and diversification across the opportunity set.
Focus on proprietary relationships and bespoke transactions to access opportunities and information.
Three types of active positioning may help reduce traditional EM risk while maximizing potential return.
Pramol Dhawan, PIMCO’s Head of Emerging Markets, explores the evolving dynamics of emerging markets and how the firm’s unique strategies, global reach and robust relationships help clients navigate the asset class.
We believe the two resource-rich economies – once labeled fragile – will be global growth leaders over the next several years, driven by prudent policies and stable macro fundamentals.
The strategy targets more attractive income and yield than other typical Asian bond funds by investing across the credit spectrum, focusing on high income opportunities, high average credit quality, and currency allocation.
EM as a whole stands to potentially benefit from China’s post-pandemic economic reopening, with differentiation among individual countries as global trade allegiances shift.
China’s central government puts high-quality growth as top priority, along with continued support for business and opening-up.
After withstanding a multitude of global challenges last year, emerging markets look poised for improvement as inflation recedes and the path of monetary policy comes into view.
As the COVID-19 recovery continues, we expect Asia’s growth-inflation dynamics to diverge from the rest of the world, led by China’s long-awaited economic reopening.
China’s introduction of comprehensive support for its real estate sector could provide some cyclical relief amidst longer-term headwinds, but new COVID-19 waves cloud the outlook.
All investments contain risk and may lose value. Investing in foreign-denominated and/or -domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. 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. Sovereign securities are generally backed by the issuing government. Obligations of U.S. government agencies and authorities are supported by varying degrees, but are generally not backed by the full faith of the U.S. government. Portfolios that invest in such securities are not guaranteed and will fluctuate in value.
Alpha is a measure of performance on a risk-adjusted basis calculated by comparing the volatility (price risk) of a portfolio vs. its risk-adjusted performance to a benchmark index; the excess return relative to the benchmark is alpha.
There is no guarantee that these investment strategies will work under all market conditions or are appropriate for all investors and each investor should evaluate their ability to invest long-term, especially during periods of downturn in the market. No representation is being made that any account, product, or strategy will or is likely to achieve profits.
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 opinions of the manager but not necessarily those of PIMCO, 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. ©2021, PIMCO.