GNMA and Government Securities Fund


Updated December 10, 2019


Seeks maximum total return, consistent with preservation of capital and prudent investment management

Primary Portfolio

Short to intermediate maturity mortgage-related fixed income securities (1-7 yr. avg. duration)


Fund Overview

Focused on government-guaranteed GNMA securities

This fund invests at least 80% of its assets in GNMA securities, part of the large and highly liquid mortgage-backed securities market, giving it high credit quality and attractive total return potential.

Why Invest In This Fund

A core investment

With its high average credit quality, this fund can make a solid addition to nearly any investor’s bond portfolio. PIMCO’s value oriented, risk conscious approach seeks to deliver consistent excess returns that are uncorrelated to traditional equity and bond markets.

Attractive return potential vs. Treasuries

GNMA securities are backed by the same full faith and credit guarantee offered by U.S. Treasury securities, yet typically provide higher yields to compensate for prepayment risk – the risk that mortgage borrowers can pay off their mortgages at any time.

Over 30 years of mortgage experience

Building on PIMCO’s experience in the mortgage sector and time-tested investment process, the fund’s managers seek to generate excess returns over time by using relative value trading strategies to exploit inefficiencies in the mortgage market.

Our Expertise

The fund is managed by Daniel Hyman and Michael Cudzil, mortgage specialists who both have over a decade of experience in the sector. The team draws on PIMCO’s robust mortgage research capabilities, which help identify security-specific risks as well as the effect of mortgage performance on other sectors and the broader economy.


Bloomberg Barclays GNMA Index


Bloomberg Barclays GNMA Index is an unmanaged index covering mortgage-backed pass-through securities of the Government National Mortgage Association (GNMA).


Monthly with Daily Accrual






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Mike Cudzil

Portfolio Manager, Liability-Driven Investment

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Daniel H. Hyman

Head of Agency MBS Portfolio Management

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Yields & Distributions