Opportunity Playbook for Investing in Changing Markets

Looking for strategies that can help address your needs today? Below you'll find insights and ideas to help you navigate the road ahead.

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What Should I Do

Strategies That Can Help Address Your Needs

With higher volatility and lower returns expected over the longer-term, investors will need to balance their current needs with their longer-term return objectives. PIMCO's outcome-oriented strategies are designed to help investors do both – and each is backed by PIMCO's 50 years of active experience.

Choose Your Desired Outcome

Defend Against Volatility

Focus on quality diversifiers to help mitigate downside risk.

PTTRX PIMCO Total Return Bond Fund
Overall Morningstar Rating
3-star Rating
Overall Morningstar Rating for PIMCO Total Return Fund Institutional Class, as of 12/31/2020 rated against 543 funds based on risk-adjusted returns. Category: Intermediate Core-Plus Bond.
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PFMIX PIMCO Municipal Bond Fund
Overall Morningstar Rating
4-star Rating
Overall Morningstar Rating for PIMCO Municipal Bond Fund Institutional Class, as of 12/31/2020 rated against 141 funds based on risk-adjusted returns. Category: Muni National Long.
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Aim For High Quality

Consider attractive opportunities that seek to enhance yield potential.

PDMIX GNMA and Government Securities Fund
Overall Morningstar Rating
5-star Rating
Overall Morningstar Rating for PIMCO GNMA and Government Securities Fund Institutional Class, as of 12/31/2020 rated against 224 funds based on risk-adjusted returns. Category: Intermediate Government.
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PIGIX Investment Grade Credit Bond Fund
Overall Morningstar Rating
4-star Rating
Overall Morningstar Rating for PIMCO Investment Grade Credit Bond Fund Institutional Class, as of 12/31/2020 rated against 190 funds based on risk-adjusted returns. Category: Corporate Bond.
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Focus On Flexibility

Look to a flexible, multi-sector strategy that takes a return-oriented and risk-focused approach.

PIMIX Income Fund
Overall Morningstar Rating
4-star Rating
Overall Morningstar Rating for PIMCO Income Fund Institutional Class, as of 12/31/2020 rated against 295 funds based on risk-adjusted returns. Category: Multisector Bond.
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Go On Offense

Aim to take advantage of liquidity premia as well as dislocated and stressed opportunities.

PHMIX PIMCO High Yield Municipal Bond Fund
Overall Morningstar Rating
5-star Rating
Overall Morningstar Rating for PIMCO High Yield Municipal Bond Fund Institutional Class, as of 12/31/2020 rated against 177 funds based on risk-adjusted returns. Category: High Yield Muni.
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Interval Funds

Access new opportunities across public and private markets.

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What to Expect

Expect Lower Returns and Higher Volatility

The COVID-19 crisis has amplified four macroeconomic disruptors, which could shift economies, markets, and portfolios over the next 3-5 years.

With higher volatility likely ahead, we believe active management will continue to be essential for finding attractive opportunities, which typically stem from volatile markets, and navigating the risks of the disruptive trends.

more on our outlook

Secular Disruptions

Secular Disruptions graphic 
Source: PIMCO. For illustrative purposes only.

Risks and opportunities

Understanding Relative Risk Across Asset Classes

PIMCO's Investment Committee has long benefited from the concept of concentric rings, which places the most liquid, least risky assets at the center and populates the outer rings with increasingly less liquid and riskier segments.

Importantly, investors should earn increasing risk premia – and potentially higher returns over time – as they move out from the center.

PIMCO's Concentric Circles

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Equities and real estate investment trusts

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High yield corporates, subprime mortgages and emerging market debt

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High quality commercial mortgage-backed securities

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High quality emerging market debt, investment grade corporates and municipals

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Secured loans and AAA asset-backed securities

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Agency mortgage-backed securities, Treasury Inflation-Protected Securities (TIPS), swaps and Treasury futures

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Intermediate- and long-term Treasuries

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Ultra short- and short-term bonds

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Cash

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Tooltip: Ring #1

Agency mortgage-backed securities

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Source: PIMCO. For illustrative purposes only.

PIMCO’s Concentric Circles

RETURN TO CHART
  1. Cash
  2. Ultra short- and short-term bonds
  3. Intermediate- and long-term Treasuries
  4. Agency mortgage-backed securities, Treasury Inflation-Protected Securities (TIPS), swaps and Treasury futures
  5. Secured loans and AAA asset-backed securities
  6. High quality emrging market debt, investment grade corporates and municipals
  7. High quality commercial mortgage-backed securities
  8. High yeild corporates, subprime mortgages and emerging market debt
  9. Equities and real estate investment trusts
Source: PIMCO. For illustrative purposes only.

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