Press Release

PIMCO Launches Global ESG Investment Platform

New platform seeks to help clients achieve their investment goals while making a positive social impact

 

Newport Beach, California (January 19, 2017) – PIMCO, a leading global investment management firm, has launched a dedicated Environmental, Social and Governance (ESG) investment platform globally, offering a range of fixed income solutions to investors seeking attractive return potential while making a positive social impact.

PIMCO applies a robust framework across its ESG solutions, seeking to deliver maximum impact for investors. This framework includes three key elements: exclusion, evaluation and engagement. Companies with business practices that are misaligned with sustainability principles are excluded from PIMCO’s ESG portfolios. Companies are also evaluated on their ESG credentials and those with best-in-class ESG practices are favored in these solutions. Critically, the team engages collaboratively with companies, encouraging them to improve their ESG practices and influence long term change.

As part of this platform, PIMCO has enhanced two of its socially responsible funds in the U.S. to incorporate a wider range of ESG considerations into the investment process. The U.S. domiciled Total Return Fund III, first launched in 1991, has converted into the PIMCO Total Return ESG Fund and PIMCO’s Low Duration III Fund is now the PIMCO Low Duration ESG Fund. The funds are managed by a team led by Scott Mather, Managing Director and CIO for US Core Strategies and Alex Struc, Portfolio Manager co-heading the ESG initiative at PIMCO.*

PIMCO has also launched a dedicated ESG fund in EMEA managed by a team led by Andrew Balls, Managing Director and CIO of Global Fixed Income and Mr. Struc.

Scott Mather said: “For many investors, it is no longer sufficient to simply screen out undesirable investment categories; they seek to proactively affect change. Our ESG platform gives investors the tools to do that while aiming to provide attractive returns.”

Alex Struc said: “Historically, this type of strategy has been pursued by equity investors but we firmly believe that engagement as a debtholder is equally important. Across the vast fixed income universe, small change can have an enormous positive impact.”

Media Contacts

Michael Reid
Global Head of Corporate Communications – New York
212.739.3253
michael.reid@pimco.com

Agnes Crane
U.S. Corporate Communications – New York
212.739.4212
agnes.crane@pimco.com

Laura Batty
U.S. Corporate Communications – Newport Beach
949.720.6374
laura.batty@pimco.com

Jochen Haegele
EMEA Corporate Communications – Munich
+49.89.26209.6293
jochen.haegele@pimco.com

Jennifer Spivey
U.K. and EMEA Corporate Communications – London
+44.20.3640.1484
jennifer.spivey@pimco.com

Millie Dravers
Australia Corporate Communications – Sydney
+612.9290.9577
millie.dravers@pimco.com

Donna Chan
Asia ex-Japan Corporate Communications – Hong Kong
+852 3650 7752
donna.chan@pimco.com

Disclosures

About PIMCO

PIMCO is a leading global investment management firm, with offices in 11 countries throughout North America, Europe and Asia. Founded in 1971, PIMCO offers a wide range of innovative solutions to help millions of investors worldwide meet their needs. Our goal is to provide attractive returns while maintaining a strong culture of risk management and long-term discipline. PIMCO is owned by Allianz S.E., a leading global diversified financial services provider.

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus and summary prospectus, if available. Encourage your clients to read them carefully.

* The Total Return ESG and Low Duration ESG Funds are additionally managed by Mark Kiesel and Jerome Schneider, respectively.

The Funds converted on 6 January 2017.

A word about risk: 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 the current low interest rate environment increases this risk. Current 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. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market’s perception of issuer creditworthiness; while generally supported by some form of government or private guarantee there is no assurance that private guarantors will meet their obligations. High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. 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.

Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO's sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made.

PIMCO undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

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. ©2017, PIMCO

PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY 10019, is a company of PIMCO.

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