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Corporate Bond Ladder Managed Account

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Strategy Overview

Highlights

Aims to deliver a source of predictable income while preserving capital by investing in investment grade corporate bonds with laddered maturities of 1–5, 1–11, 3–8 and 3–11 years.

Benefits from the depth and expertise of our world-renowned credit investment team.

Employs PIMCO’s independent credit rating system, which aims to identify compelling opportunities, or unappreciated risk that may not be appreciated by markets.

Seeks to improve market access and pricing on trades based on PIMCO’s institutional presence.

Managed by a dedicated portfolio management team, including by Mark Kiesel, PIMCO CIO Global Credit and Morningstar 2012 Fixed Income Manager of the Year*

Invests in portfolio of corporate bonds with an average credit quality of BBB or higher

*The Morningstar Fixed Income Fund Manager of the Year award is based on the strength of the manager, performance, strategy and firm’s stewardship.

Process & Philosophy

Investment Process

PIMCO’s rigorous top-down and bottom-up approach to credit research is designed to add value by identifying industry and company fundamental trends that may not be reflected by rating agencies and recognized by the broader market.

Our team of credit research analysts develops ratings independently of the major rating agencies. Our analysts also cover the entire rating spectrum of issuers (investment grade and high yield) within an industry. This helps us identify both upgrade and downgrade candidates, which may not be priced into markets.

Because PIMCO maintains relationships with more than 30 dealers, we may be able to improve market access and pricing on trades based on our institutional presence, which may lead to better execution for investors.

Importantly, although the portfolios are primarily buy-and-hold-to-maturity strategies, we can sell and replace a bond if our view on the forward-looking credit profile of the issuer is no longer positive. Combined with our unique approach to ongoing credit surveillance, this helps us play both defense, by seeking to avoid defaults and severe downgrades, and offense, by seeking to add risk-adjusted yield.

Portfolio Construction

PIMCO Corporate Bond Ladder portfolios are constructed using investment grade corporate bonds with laddered maturities of 1–5, 1–11, 3–8 and 3–11 years.

The managed account strategies described in this material are offered by Pacific Investment Management Company LLC and are available exclusively through financial professionals. Managed accounts have a minimum asset level and may not be suitable for all investors. Financial professionals seeking more information should contact their managed accounts department or call their PIMCO representative.

Disclosures

The managed account strategies described in this material are offered by Pacific Investment Management Company LLC and are available exclusively through financial professionals. Managed accounts have a minimum asset level and may not be appropriate for all investors. Financial professionals seeking more information should contact their managed accounts department or call their PIMCO representative.

Past performance is not a guarantee or a reliable indicator of future results.


Individual account holdings will vary depending on the size of an account, cash flows and account restrictions. Portfolio holdings are subject to change daily without notice. At any time an individual account managed in this strategy may or may not include securities held by another portfolio. Consequently, any particular account may have portfolio characteristics and performance that differ from another individual account in this strategy.

A word about risk:


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 the current low interest rate environment increases 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. 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. Highyield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Diversification does not ensure against loss. Investors should consult their investment professional prior to making an investment decision.


The credit quality of a particular security or group of securities does not ensure the stability or safety of an overall portfolio.

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.


Pacific Investment Management Company LLC, 650 Newport Center Drive, Newport Beach, CA 92660 is regulated by the U.S. Securities and Exchange Commission. PIMCO is a trademark of Allianz Asset Management of America LLC in the United States and throughout the world. ©2024, PIMCO.


CMR2023-0828-3085636