Don't Let Volatility Be the End of Opportunity.

What Can Investors Do?

We expect volatility to increase given where we are in the cycle. Consider these investment ideas to prepare portfolios for uncertain markets.

De-Risk to the Front End of the Yield Curve

With short-term strategies, you can reduce risk in your portfolio while still participating in the market.

Short-term assets

Diversify with High Quality Duration

Benchmark-oriented core bond portfolios – which provide structural exposure to duration and a high quality bias – have the potential to perform well in a risk-off environment.

Visit Total Return

Differentiate by Embedding Flexibility

Benchmark-agnostic strategies may offer greater ability to diversify traditional risks, tactically reposition portfolios and take advantage of market dislocations.

Income solutions

How should I think about investing ahead of the next recession?

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Helping Build Resilient Portfolios for Nearly Five Decades

With markets expected to stay volatile, portfolios need to be positioned to handle the pressure. PIMCO is prepared for times like these. Through almost half a century of market change, our investment process has helped investors stand up to the challenge by seeking to deliver strong risk-adjusted returns.

PIMCO Fixed Income Strategies: Resiliency in Challenging Markets

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PIMCO’s actively managed strategies delivered strong performance through the most recent equity sell-off

PIMCO’s actively managed strategies delivered strong performance through continued market volatility
PIMCO’s actively managed strategies delivered strong performance through continued market volatility
Average Annual Returns (Institutional Share Class at NAV) Inception Date 1 Year 3 Year 5 Year 10 Year Since Inception
PIMCO Total Return Fund (PTTRX) 11-May-87 10.08% 3.56% 3.58% 4.32% 7.18%
Bloomberg Barclay U.S. Aggregate Index 10.30% 2.92% 3.38% 3.75% 6.27%
PIMCO Income Fund (PIMIX) 30-Mar-07 6.16% 5.29% 5.12% 8.87% 8.20%
Bloomberg Barclay U.S. Aggregate Index 10.30% 2.92% 3.38% 3.75% 4.31%
PIMCO Dynamic Bond Fund (PFIUX) 30-Jun-08 2.84% 4.22% 2.89% 3.05% 3.98%
3 Month USD LIBOR Index 2.56% 1.85% 1.27% 0.80% 0.93%
PIMCO Low Duration Income Fund (PFIIX) 30-Jul-04 4.53% 4.92% 3.73% 4.41% 3.84%
Bloomberg Barclays U.S. Aggregate 1-3 Years Index 4.67% 1.84% 1.61% 1.55% 2.53%
PIMCO Short Asset Investment Fund (PAIDX) 31-May-12 2.33% 2.22% 1.67% - 1.55%
FTSE 3-Month Treasury Bill Index 2.36% 1.52% 0.96% - 0.67%
PIMCO Mortgage Opportunities and Bond Fund (PMZIX) 22-Oct-12 4.21% 3.77% 3.89% - 5.47%
3 Month USD LIBOR Index 2.56% 1.85% 1.27% - 0.99%
S&P 500 Index 4.25% 13.39% 10.84% 13.24% -

Source: PIMCO, Bloomberg. As of 30 September 2019.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit or by calling 888.87.PIMCO.

Performance is shown versus the S&P 500 as a representation of the broad U.S. stock market.

Performance displayed is for Institutional class shares, net of fees. Total/Net Annual Expenses, Institutional class: PIMCO Mortgage Opportunities and Bond Fund (1.37%/0.60%), PIMCO Short Asset Investment Fund (0.38%/0.34%), PIMCO Low Duration Income Fund (0.59%/0.51%), PIMCO Dynamic Bond Fund (1.01%/0.81%), PIMCO Income Fund (1.05%/0.50%), PIMCO Total Return Fund (0.71%/0.46%). Net Expenses exclude interest expense. Interest expense can result from portfolio investment transactions and is not paid to PIMCO.

Not all funds may be available on all platforms. Please consult with your Financial Advisor or Home Office for availability.

Buyer Beware: Passive Exposure May Be Pressured When the Business Cycle Turns

We believe traditional indices reflect less attractive – and potentially vulnerable – risk-return profiles.

Interest Rate Risk

Duration has increased by nearly 60% since 2008.

Credit Risk

The share of credit in the U.S. Agg – and BBB credit – has increased since 2008.

Compensation for Risk

Yields still remain below levels 10 years prior.

As of 31 December 2018; Source: Barclays, duration and yield statistics represented by Bloomberg Barclays U.S. Aggregate Bond Index.

Textbook bond math holds that lower market-wide yields increase the duration of bonds. Some readers will wonder why at certain points – such as the most recent few months – yields and duration have risen together. The explanation is that the average maturity of the index has not remained constant; in fact, it has generally increased over time.

Financial Advisor Action Center

Is Your Client’s Portfolio Ready for Volatile Markets?

Talk with your PIMCO representative about actionable investing ideas that can help your clients stay on course as markets shift.