Managed Accounts at PIMCO

Managed Accounts

PIMCO’s Managed Account strategies provide access to our time-tested investment expertise while giving investors the transparency and flexibility that comes with direct ownership of securities.

Managed Accounts at PIMCO provide access to institutional investment expertise and are led by some of the top portfolio managers in the industry supported by more than 2,000 dedicated professionals around the world. We employ a rigorous top-down, bottom-up investment process that’s been tested in virtually every market environment for nearly 50 years to select, build and optimize portfolios specific to clients’ financial goals.

  • Corporate Bond Ladder

    • Aims to preserve capital and deliver a source of predictable income
    • Invests in a portfolio of corporate bonds with an average credit quality of BBB or higher
  • Gurtin Municipal Extended Value

    • Strives to maximize total return without compromising on credit quality
    • Comprised of carefully selected, high-coupon callable municipal bonds in the intermediate- to long-duration portion of the investment grade market
    • Employs a research-based, active investment approach that seeks to capitalize on the municipal market’s yield curve inefficiencies and enhance total return
  • Gurtin Municipal Intermediate Value

    • Targets premium, tax-exempt income and enhanced risk-adjusted returns
    • Invests in a portfolio of high quality callable and non-callable (i.e., bullet) municipal bonds to create an “enhanced ladder” structure
    • Seeks to generate structural alpha, without sacrificing credit quality
  • Gurtin Municipal Opportunistic Value

    • Targets high-return opportunities in tax-efficient, investment grade muni bonds by focusing on uncovering structures that we believe are undervalued by the market
    • Takes a highly flexible investment approach, attempting to capture value across the yield curve and identify misunderstood credits that aim to meet strict yield targets and achieve attractive risk-adjusted returns
    • Deploys capital strategically in an effort to exploit temporary mispricing of complex securities during market dislocations and bouts of illiquidity
  • Gurtin Municipal Stability

    • Structured with a focus on capital preservation and steady after-tax returns in line or in excess of traditional cash and money market investment solutions over the cycle
    • Identifies high quality municipal bonds that adhere to the strategy’s strict low interest rate sensitivity mandate — with the added feature of providing a high degree of liquidity
    • Dynamically adjusts duration based on current market conditions to pursue the highest yield possible within permissible volatility parameters
  • Low Duration

    • Focuses on broad market exposure and lower interest rate sensitivity
    • Partially allocates to a PIMCO-managed commingled fund for greater diversification potential
    • Emphasizes total return through both income and capital appreciation
  • Municipal Bonds

    • Aims to deliver high quality, tax-efficient returns
    • Invests in a core portfolio of individual municipal bonds plus a municipal commingled fund
    • Partially allocates to a PIMCO-managed commingled fund to achieve greater flexibility and diversification potential
  • Municipal Ladder

    • Designed to generate an attractive, predictable stream of tax-efficient income
    • Emphasizes high quality municipal securities with capital preservation a primary goal
    • Bonds are generally held to maturity, but PIMCO looks out for clients on an ongoing basis by maintaining discretion to replace a bond due to credit or liquidity factors
  • Real Return

    • Targets a portfolio that offers liquidity, low credit risk, and a direct link to inflation
    • Invests primarily in high quality inflation-linked bonds, including Treasury Inflation Protected Securities (TIPS)
    • Partially allocates to a PIMCO-managed commingled fund to achieve greater diversification potential
  • Targeted Municipal Ladder

    • Designed to generate an attractive, predictable stream of tax-efficient income
    • Emphasizes high quality municipal securities with capital preservation a primary goal
    • Bonds are generally held to maturity, but PIMCO may be able to add additional value by maintaining discretion to sell and reinvest out the curve as bonds roll down the lowest rung of the ladder. PIMCO may also seek to help protect clients by replacing a bond due to credit or liquidity factors
  • Total Return

    • A true core bond strategy focusing on high quality intermediate-term bonds
    • Employs a variety a value-added strategies across the global bond markets to increase total return potential and reduce overall risk
    • Partially allocates to a PIMCO-managed commingled fund to achieve greater diversification potential and invest in specialized areas of the bond market

Disclosures

The managed account strategies described in this material are offered by Pacific Investment Management Company LLC and Gurtin Municipal Bond Management, and are available exclusively through financial professionals. Managed accounts have a minimum asset level and may not be appropriatefor all investors. Financial professionals seeking more information should contact their managed accounts department or call their PIMCO representative.

Select Managed Accounts strategies consist of individual securities and a select combination of proprietary, commingled vehicles. These vehicles are available only through managed accounts utilizing the Managed Accounts strategy and are available by prospectus only.

Individual account holdings will vary depending on the size of an account, cash flows and account restrictions. Portfolio holdings are subject to change daily without notice. At any time an individual account managed in this strategy may or may not include securities held by another portfolio. Consequently, any particular account may have portfolio characteristics and performance that differ from another individual account in this strategy.

A word about risk:
All investments contain risk and may lose value. Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and low interest rate environments increase this risk. Reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed. Inflation-linked bonds (ILBs) issued by a government are fixed-income securities whose principal value is periodically adjusted according to the rate of inflation; ILBs decline in value when real interest rates rise. Treasury Inflation-Protected Securities (TIPS) are ILBs issued by the U.S. Government. Sovereign securities are generally backed by the issuing government, obligations of U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value. Income from municipal bonds is exempt from federal income tax and may be subject to state and local taxes and at times the alternative minimum tax; a strategy concentrating in a single or limited number of states is subject to greater risk of adverse economic conditions and regulatory changes. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. Diversification does not ensure against loss.

PIMCO acquired Gurtin on January 2, 2019.

The references to yield targets is not a guarantee, projection, or prediction of future results. There can be no assurance that the opportunities in which the strategy seeks to invest will continue to be available.

PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. Pacific Investment Management Company LLC, 650 Newport Center Drive, Newport Beach, CA 92660, 800-387-4626. ©2020, PIMCO.

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