Text on screen: PIMCO

Text on screen: INTRODUCING PIMCO PRO

A simple, effective digital platform with tools to scale your practice and deliver personalized solutions.

Text on screen: Brian Kyle, Senior Vice President, U.S. GWM Advisor Solutions

Kyle: We've all felt the effects of inflation, geopolitics and a Federal Reserve rapidly increasing rates over the last year. The subsequent volatility made it a challenging environment across asset classes. Fixed income was no different, with many sectors posting their worst annual returns on record.

FULL PAGE GRAPHIC: TITLE – Today’s yields are at a much stronger starting point. The bar chart shows yield to worst (YTW) for various fixed income asset classes. YTM is the estimated lowest potential yield that can be received on a bond without the issuer defaulting. The solid-colored bars show YTW as of December 31, 2022 at much higher starting points compared to December 31, 2021 across fixed income asset classes, namely core bonds, investment grade credit, high yield credit, emerging market bonds, municipal bonds, and high yield municipal bonds. The yields for most fixed income asset classes more than doubled in 2022 from 2021 levels.

As a result, yields across some of these areas and fixed income have risen to levels that we have not seen in more than a decade. Why is this important? Well, within fixed income, that starting yield has over a 90% correlation with your forward looking five year returns.

Add to it an environment of potentially slowing economic growth or even a recession, and you have the ingredients for a critical moment to reevaluate portfolio allocations.

FULL PAGE GRAPHIC: TITLE – How big is the bond market? The chart shows four bars. The first bar from the left shows the size of the U.S. Stock Market is $52 Trillion. The second bar shows the size of the U.S. Bond Market is $49 Trillion. The third bar shows the size of the Global Stock Market is $124 Trillion. The fourth bar shows the size of the Global Bond Market is $127 Trillion.

The bond markets are really diverse place and you can find bonds to fill a variety of roles within your portfolio.

In fact, at PIMCO, we use a whole host of different tools to navigate markets and construct portfolios that ensure alignment with investment goals and adherence to strict risk management.

These tools have proven so effective for us over the years that we developed a platform for financial advisors

Text on screen: INTRODUCING PIMCO PRO

A simple, effective digital platform with tools to scale your practice and deliver personalized solutions

called PIMCO Pro, and this will enable you to build portfolios with a similar, thoughtful approach. The insights these tools provide are easy to bring to life within client portfolios. For example,

FULL PAGE GRAPHIC: TITLE – PIMCO Pro tool suite. There are four columns listing the offerings within the PIMCO PRO platform. The first column is titled Fund Portfolio Analysis, and the text underneath reads Use PIMCO’s time-tested analytics to evaluate performance, scenarios, and risk of a customized fund portfolio. The second column is titled Allocations in Action (CMAs). CMAs stand for Capital Market Assumptions. The text underneath reads, View our five-year capital market assumptions in multiple contexts, drill into components, model portfolios, and explore reallocations. The third column is titled, Retirement Income Analysis, and the text underneath reads, Build retirement strategies for clients using PIMCO’s goals-based framework. The fourth column is titled Global Market Data Dashboard, and the text underneath reads, Interact with aggregated, daily market data across global fixed income, equity, commodity, currency, and macro metrics.

you can shock your portfolio through scenario analysis and really gain a better understanding of both portfolio and manager risk through our proprietary risk factor engine.

You can optimize your asset allocation across equities, fixed income and even alternative investments, using our forward looking five year capital market assumptions, or build a custom retirement plan to navigate the challenges of decumulation and provide a consistent source of retirement income.

Finally, you can stay apprised of rapidly moving markets by accessing our global market data dashboard. This not only provides live streaming data, but also the ability to chart across data points curated by our portfolio strategists.

All of these tools were developed for financial advisors and consultants with a focus on solving the challenges facing us as investors today. We would welcome the opportunity to partner with you.

So contact us. Reach out to your PIMCO relationship manager or access the site on PIMCO Pro.

Text on screen: For more information, contact your PIMCO Account Manager or visit pimco.com/PimcoPro

Text on screen: PIMCO

Disclosure

Past performance is not a guarantee or a reliable indicator of future results.

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. Income from municipal bonds is exempt from U.S. federal income tax and may be subject to state and local taxes and at times the alternative minimum tax. 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. Mortgage- and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and while generally supported by a government, government-agency or private guarantor, there is no assurance that the guarantor will meet its obligations. 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.

PIMCO Pro offers institutional clients and their consultants access to their account information and a growing set of tools designed for everyday use by institutional investors and financial advisors. PIMCO Pro is not available to the retail public. To become a PIMCO Pro User, register at pro.pimco.com/register as a financial advisor or institutional client or consultant. 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. The content of this page and of PIMCO Pro is for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. The content of this page and of PIMCO Pro may not be reproduced in any form, or referred to in any other publication, without express written consent from PIMCO. 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 LLC in the United States and throughout the world. ©2023, PIMCO.

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