PIMCO’s Actively Managed Credit Absolute Return Strategy
The PIMCO Credit Absolute Return Strategy uses a global approach to credit selection with a focus on generating attractive absolute returns without the constraint of a benchmark. In an effort to achieve this goal, the strategy’s portfolio is constructed from PIMCO’s best bottom-up corporate credit ideas across investment grade, high yield, bank loans and other corporate securities.
While the strategy is designed to adhere to PIMCO’s investment philosophy and risk management process, it will have significant flexibility to increase and reduce its sensitivity to credit markets in an effort to achieve its absolute return objective in various market environments.
In periods when credit offers attractive relative value, for example, the strategy will likely have a greater exposure to the credit markets. In periods where credit spreads are likely to widen, the strategy would likely significantly reduce its sensitivity to credit markets through various hedging strategies and focus more on relative value between sectors in an effort to achieve its absolute return objective.