A GNMA strategy offers investors efficient exposure to the mortgage-backed securities market, the largest sector of the global fixed income market, with a focus on U.S. government–guaranteed GNMA securities.
Potential benefits of a GNMA strategy:
- May offer yield premium relative to Treasuries, with high credit quality and liquidity
- Aims to provide excess returns through active management focused on total return
- Improved portfolio diversification
The strategy employs a unique approach to the mortgage-backed securities (MBS) market that emphasizes actively managed exposure to Agency-guaranteed MBS. The Agency mortgage market has been a critical source of excess return opportunity for PIMCO since its founding, and the firm has a dedicated team of career mortgage portfolio managers. The strategy has a disciplined focus on value and security selection, which is supported by a sophisticated analytical platform that helps identify mispriced securities presenting attractive investment opportunities.