Investment Process
Our investment process utilizes both “top - down” and “bottom - up” strategies. Top - down strategies focus on duration, yield curve positioning, volatility, and sector rotation. These strategies are deployed from a macro view of the portfolio driven by our secular outlook of the forces likely to influence the economy and financial markets over the next three to five years and our cyclical views of two - to four-quarter trends. Implementation in portfolios is effected by selecting securities that achieve the designated objectives. Bottom - up strategies drive our security selection process and facilitate the identification and analysis of undervalued securities. Here, we employ advanced proprietary analytics and expertise in all major fixed - income sectors. The objective is to combine perspectives from both the portfolio and security levels to consistently add value over time within acceptable levels of portfolio risk.
Total Return Philosophy
PIMCO differentiates itself from many managers by taking a total return approach to bond management. Rather than seek only income, PIMCO pursues maximum total return - income plus capital appreciation. PIMCO pioneered this philosophy 40 years ago, and it has been critical to the firm's long-term performance record. Our Total Return philosophy is founded on the principle of diversification. We believe that no single strategy should dominate returns. By relying on multiple sources of value that arise from a diversified portfolio, we seek to generate a solid, consistent track record.