The Advantages of Active Bond Management

Learn about our active fixed income investment approach.


As active fixed income investors for more than 50 years, we believe that active management is the responsible way to navigate the complexities of the vast global fixed income universe – and today, we believe it matters more than ever.


Why Active Fixed Income Matters More Today

Finding opportunities to enhance yield while managing the growing credit risk may not be possible for passive – but we believe it is critical for investors in today’s markets.

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History of Active Outperformance

PIMCO’s bond strategies aim to actively help you succeed. Seeking to beat their benchmark indexes, they also, importantly, focus on rigorous risk management to pursue consistent attractive risk-adjusted returns.

Percentage of PIMCO Assets Outperforming Benchmarks (After Fees)

As of 31 March 2023. Source: PIMCO Based on PIMCO managed portfolios with at least a 5-years history. The after-fees performance of each portfolio was compared to the portfolio's primary benchmark. If the after-fees portfolio performance was greater than the benchmark performance for a given period, the assets in that portfolio were included in the outperforming data. Benchmark outperformance indicates the performance of a portfolio as compared to its benchmark. As such, it does not indicate that a portfolio's performance was positive during any given period. For example, if a portfolio declined 3% during a given period, and its benchmark declined 4%, the portfolio would have outperformed its benchmark, even though it lost value during the period. Certain absolute return oriented portfolios contained within the data may inflate the data either positively or negatively due to the low return/volatility characteristics of the primary benchmark. For example a portfolio measured against 3-month USD Libor would be more likely to out- or underperform its benchmark. Past performance is not a guarantee or a reliable indicator of future results.

Bond Strategies You Can Build On

PIMCO's active bond strategies seek to help clients address their current needs and longer-term objectives. Each is backed by PIMCO's time-tested investment process and global resources - which helps create an advantage for active managers and we believe a necessity in challenging environments.


For Advisors

Discover how active bond managers have performed (after fees) compared to passive, and the potential risks of passive bond strategies.

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For Investors

Explore the active advantage in fixed income in our investor-friendly brochure, which highlights active outperformance over the long term.


Frequently Asked Questions

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All investments contain risk and may lose value. 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. 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. Management risk is the risk that the investment techniques and risk analyses applied will not produce the desired results, and that certain policies or developments may affect the investment techniques available in connection with managing the strategy.

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.

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 current opinions of the manager 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. Pacific Investment Management Company LLC, 650 Newport Center Drive, Newport Beach, CA 92660 | 800.387.4626 ©2023, PIMCO