U.S. Government Bond Ladder Managed Account


Strategy Overview


The portfolio is constructed solely of U.S. Treasury Fixed Income Securities, which are supported by the full faith and credit of U.S. Government, whose maturities are staggered across maturity ranges.

Designed to seek to maximize income within the strategy objectives, and aims to be able to efficiently accommodate liquidity needs upon request.

By evenly investing in fixed income securities across the yield curve, portfolios seek to spread interest-rate risk evenly across the investment horizon. We maintain a disciplined approach of continually reinvesting proceeds of maturing bonds at the longest end of the ladder, enabling us to consistently invest in bonds with what we believe to be attractive at-market yields.

Portfolio Construction

PIMCO U.S. Government Bond Ladders are constructed using U.S. Treasury Fixed Income Securities with laddered maturities of 0-18 months, 0-3, 0-5, and 0-10 years.

U.S. Government Bond Ladder is a portfolio of bonds that mature at regular intervals, typically in annual increments. As a bond matures, the principal is reinvested in the longest maturity at the end of the ladder. This approach seeks to generate a predictable income stream and may also provide an advantage in a rising interest rate environment, since annually maturing proceeds are reinvested at potentially higher rates.


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

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.

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: 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. Certain U.S. government securities are backed by the full faith of the government. Obligations of U.S. government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. government. Portfolios that invest in such securities are not guaranteed and will fluctuate in value. 

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.

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.