Introducing PIMCO Balanced
Retirement Income Strategy

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PIMCO Balanced Retirement Income Strategy

Why PIMCO Balanced Retirement Income?

PIMCO's Balanced Retirement Income Strategy (PBRI) is an all-in-one diversified investment option exclusively for employer-sponsored retirement plans. It’s designed to deliver consistent and stable income during retirement, with the ability for retirees to access their savings when and how they need it.

Consistent Income

Consistent Income

Seeks high and consistent monthly income stream, with daily liquidity for spending flexibility

Optimize Cost & Yield

Principle Preservation

Optimizes income (to support consumption) and seeks capital gains (principal growth)

Principle Preservation

Optimize Cost & Yield

PIMCO active bonds plus Vanguard passive equities, optimized for cost and yield

WHAT RETIREES WANT

  • Preserve or Grow Principal
  • Steady income
  • Control Over Assets

WHAT PBRI SEEKS TO PROVIDE

  • Seek high and consistent level of organic income*
  • Participant withdrawal flexibility (no annuity contracts/lock-ups)
  • Simplicity of allocating to mutual funds and ETFs
  • Cost efficiency
*Income/yield is not guaranteed.

PBRI leverages our research on the optimal equity allocation: to balance growth and income, with risk appropriate for retirees.

For indices, return (income/capital gain) estimates are based on the product of risk factor exposures and projected risk factor premia. The projections of risk factor premia rely on historical data, valuation metrics and qualitative inputs from senior PIMCO investment professionals.

Hypothetical example for illustrative purposes only. SOURCE: PIMCO and Bloomberg. Data from 31 January 2001–28 February 2020. The fixed income portion of the portfolio is comprised of 25% each in MBS, IG Credit, HY, and EM. We varied the allocation between the fixed income portfolio and equities to determine the impact on income level and risk. Index proxies are as follows: IG corp, Bloomberg US Corporate Index; MBS, Bloomberg US MBS Index; HY corp, Bloomberg HY Index; EM hard, Bloomberg EM USD Aggregate Index; The equities portion of the portfolio is comprised of 50% each in U.S. equities, S&P 500 Index; Int’l equities (DMEQ), MSCI EAFE Index.

A Combination of PIMCO’s Active Fixed Income and Vanguard’s Passive EquityFootnote3

PIMCO Balanced Retirement Income is a powerful combination of PIMCO’s active fixed income and Vanguard’s passive equity designed to keep costs low while aiming to preserve principal and seek retirement income across all market environments to help participants pursue the retirement they deserve.

  • Agency MBS
  • Non-Agency MBS
  • CMBS
  • ABS
  • IG Credit
  • HY Credit
  • Emerging Market Debt
  • High Dividend U.S. Stocks
  • High Dividend Intl. Stocks
  • Real Estate

PBRI is broadly diversified to support retirement income.

PBRI is broadly diversified to support retirement income.
As of 31 March 2024 | SOURCE: PIMCO. Sample for illustrative purposes only. Diversification does not ensure a profit or guarantee against a loss.

Defined Contribution Leadership

Erin Browne

Erin Browne

Portfolio Manager

Ms. Browne is a managing director and portfolio manager in the Newport Beach office, focusing on asset allocation strategies, including PIMCO’s multi-asset funds and RealPath Blend target date offerings. She manages multi-asset strategies, leads the Glide Path leadership team, and has served as a rotating member of the Investment Committee...

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Rene Martel

Rene Martel

Head of Retirement

Mr. Martel is a managing director in the Newport Beach office and PIMCO’s head of retirement. In this role, he oversees the development and implementation of investment strategies across the retirement market, including defined benefit, defined contribution, and global wealth management. Previously at PIMCO, he was global head of pension solutions, focusing on liability-driven investments, asset allocation, and asset-liability management strategies...

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Sean Klein

Sean Klein

Head of Client Business Strategy

Mr. Klein is an executive vice president on the client solutions and analytics team in the Newport Beach office. Prior to rejoining PIMCO in 2019, he was head of wholesale stress testing at MUFG Union Bank. Earlier in his career, he headed empirical model development and special consulting services at Kamakura Corporation...

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Disclosures

1 Investment products contain risk and may lose value. There is no guarantee that an investment product will be successful in producing income. Investors should consult their investment professional prior to making an investment decision.

2 Monthly income distributions are not guaranteed.

3 PIMCO is not affiliated with Vanguard.

4Blending of active and passive management

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.

Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to with stand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

The Bloomberg Barclays US Corporate Bond Index measures the investment grade, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by US and non-US industrial, utility and financial issuers. The Bloomberg Barclays US Mortgage Backed Securities (MBS) Index tracks fixed-rate agency mortgage backed passthrough securities guaranteed by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). The index is constructed by grouping individual TBA-deliverable MBS pools into aggregates or generics based on program, coupon and vintage. Starting July 2019, Freddie pools are separated into 45-day and 55-day delay generics. Introduced in 1985, the GNMA, FHLMC and FNMA fixed-rate indices for 30- and 15-year securities were backdated to January 1976, May 1977, and November 1982, respectively.

The Barclays High Yield Index is an unmanaged market-weighted index including only SEC registered and 144(a) securities with fixed (non-variable) coupons. All bonds must have an outstanding principal of $100 million or greater, a remaining maturity of at least one year, a rating of below investment grade and a U.S. Dollar denomination. The Bloomberg Barclays Emerging Markets Hard Currency Aggregate Index is a flagship hard currency Emerging Markets debt benchmark that includes USD-denominated debt from sovereign, quasi-sovereign, and corporate EM issuers. S&P 500 Index is an unmanaged market index generally considered representative of the stock market as a whole. The Index focuses on the large-cap segment of the U.S. equities market. MSCI EAFE Index is an unmanaged index designed to represent the performance of large and mid-cap securities across 21 developed markets, including countries in Europe, Australasia and the Far E ast, excluding the U.S. and Canada. It is not possible to invest directly in an unmanaged index.

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, 949-720-6000 ©2020, PIMCO

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