Long Duration Total Return Fund

PLRCX

Updated May 29, 2020

Objective

Seeks maximum total return, consistent with prudent investment management

Primary Portfolio

Long-term maturity fixed income securities

in-page

Overview

Fund Overview

A longer duration, core bond investment

PIMCO Long Duration Fund is a core bond fund that provides broad market exposure to high-quality, longer duration fixed income securities. Following PIMCO’s signature total return philosophy and process, it employs a variety of strategies to enhance return potential and manage overall portfolio risk.

Why Invest In This Fund

Greater exposure to interest rate trends

The Fund invests in a diversified portfolio of longer duration bonds, with an average duration that normally varies within two years (plus or minus) of the Barclays Capital Long-Term Government/Credit Index. Duration is a measure of a security’s price sensitivity to interest rate changes, measured in years; a longer duration implies greater interest rate sensitivity and return potential than intermediate-duration bonds, but also higher volatility. The Fund can be used as a core holding for investors with a higher risk tolerance, or as an allocation to position a portfolio for expected interest rate trends.

Value-added active management

We seek to add value through active management of the Fund. The portfolio is well-diversified, with flexibility to invest across sectors and issuers. Although the Fund is subject to greater interest rate risk than shorter-duration funds, it strives to limit this risk by maintaining the portfolio’s duration within a moderate range around the benchmark’s duration. The Fund employs PIMCO’s total return philosophy, seeking to balance capital appreciation potential and income.

Duration management expertise

PIMCO, a leading fixed income asset manager, combines various measures to assess the interest rate risk to which a longer duration portfolio may be subjected. Our extensive internal modeling addresses duration in its many forms: bull and bear durations (rate shifts of given amounts); total curve durations (changing yield curve shapes); credit spread durations; and mortgage spread and prepayment durations. Our firm-wide macroeconomic outlook, which forecasts the forces likely to impact fixed income markets over the short and long term, likewise helps drive our duration strategies.

PRIMARY BENCHMARK

Bloomberg Barclays Long-Term Government/Credit Index

PRIMARY BENCHMARK DESCRIPTION

Bloomberg Barclays Long-Term Government/Credit Index is an unmanaged index of U.S. Government or Investment Grade Credit Securities having a maturity of 10 years or more. It is not possible to invest directly in an unmanaged index.

DIVIDEND FREQUENCY

Monthly with Daily Accrual

SHARE CLASS INCEPTION

01/05/2018

CUSIP

72202G364

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Managers

Mike Cudzil

Portfolio Manager, Liability-Driven Investment

View Profile for Mike Cudzil

Mohit Mittal

Portfolio Manager, Liability Driven Investment and Credit

View Profile for Mohit Mittal

Steve A. Rodosky

Portfolio Manager, Real Return and Long Duration

View Profile for Steve A. Rodosky

Yields & Distributions