Mortgage-Backed Securities Fund


Updated September 25, 2020


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

Primary Portfolio

Intermediate-term mortgage-related securities (1-7 yr. avg. duration)



Fund Overview

A high-quality core bond investment

PIMCO Mortgage-Backed Securities Fund offers attractive, actively managed risk-adjusted return potential from mortgage-backed securities (MBS) – one of the largest and most liquid fixed income sectors.

Why Invest In This Fund

A solid core holding

With its high quality, intermediate-term portfolio, this fund can be a fundamental part of most any bond allocation. Because MBS have a low correlation (tendency to move in lockstep) with stocks, they may also provide important diversification benefits. Diversification does not protect against loss.

Attractive return potential vs. Treasuries

Agency MBS offer high credit quality and similar levels of interest rate risk to U.S. Treasuries and U.S. agency debentures. At the same time, they typically yield more than Treasuries and are prone to mispricing, which can create return-enhancing opportunities.

30 years of mortgage experience

The fund benefits from PIMCO’s long experience in the mortgage sector and proven investment process. Its managers seek to add value through numerous strategies, including relative value trading and interest rate strategies and the use of proprietary analytics to uncover undervalued securities and manage risk.

Our Expertise

The fund is managed by Michael Cudzil and Daniel Hyman, 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 U.S. MBS Fixed-Rate Index


Bloomberg Barclays U.S. MBS Fixed-Rate Index covers the mortgage-backed pass-through securities and hybrid ARM pools of Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). The MBS Index is formed by grouping individual fixed rate MBS pools into generic aggregates. It is not possible to invest directly in an unmanaged index.


Monthly with Daily Accrual






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Mike Cudzil

Portfolio Manager, Liability-Driven Investment

View Profile for Mike Cudzil

Daniel H. Hyman

Head of Agency MBS Portfolio Management

View Profile for Daniel H. Hyman

Yields & Distributions