Low Duration Fund II


Updated October 18, 2019


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

Primary Portfolio

Short- and intermediate-term fixed income securities with quality and foreign issuer restrictions


Fund Overview

A conservative core bond investment

Focused on shorter-term securities, the fund employs a core bond strategy incorporating PIMCO’s signature total return philosophy. It provides broad U.S. market exposure while maintaining a lower sensitivity to interest rate movements.

Why Invest In This Fund

Enhanced return potential

Because of its 1- to 3-year duration range, the fund typically offers a yield advantage over short-term bond funds. It also uses multiple value-added strategies in an effort to enhance returns and manage risk – an approach that has helped it deliver solid short- and long-term results.

Lower volatility potential

Historically, the fund has provided steadier returns than intermediate- or long-term bond funds. However, it may not generate the return potential of longer-term bonds and will also be more volatile than money market funds.

Impressive long-term track record

Strategies – such as credit analysis and sector emphasis – have helped boost long-term returns and manage overall risk. The fund has also produced strong long-term results and has delivered a consistent track record of positive returns for every two-year period since inception.

Our Expertise

The fund's expert portfolio management team – Scott Mather is CIO U.S. Core Strategies and Jerome Schneider is head of the short-term and funding desk – is supported by the full spectrum of PIMCO's global resources and our four decades of active bond management experience.


ICE BofAML 1-3 Year U.S. Treasury Index


The ICE BofAML 1-3 Year U.S. Treasury Index is an unmanaged index comprised of U.S. Treasury securities, other than inflation-protection securities and STRIPS, with at least $1 billion in outstanding face value and a remaining term to final maturity of at least one year and less than three years. It is not possible to invest directly in an unmanaged index.


Monthly with Daily Accrual






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Scott A. Mather

CIO U.S. Core Strategies

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Jerome M. Schneider

Head of Short-Term Portfolio Management

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Yields & Distributions