The Behavioral Science Edge
We always strive to give our clients an edge and achieve the best possible outcomes. And, we’ve long believed that behavioral science can make us better investors and help our clients make better investment decisions.
Partnering with behavioral finance experts, we integrate best practices throughout our investment process to improve collective and individual decision-making, amplify risk management, and publish behavioral insights.
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Improving Collective Decision Making
We seek to improve collective decision-making by combating groupthink –the range of biases amplified in group contexts – in our Secular and Cyclical Forums, Investment Committee, and Regional Portfolio Committees.
Amplifying Risk Management
Amplifying risk management is a critical component of our behavioral science mindset. We’ve employed behavioral analytics and decision dashboards to help improve entry and exit discipline and ease biases like the disposition effect & home bias.
Refining Individual Decision Making
Refining individual decision-making and mitigating the host of behavioral biases that can challenge even the smartest investors is also a key strategy; we’ve put robust structures and guardrails in place, such as pre-mortem checklists.
Our long-term, collaborative partnership with the Roman Family Center for Decision Research (CDR) at The University of Chicago Booth School of Business began in 2018, and continues to grow.
Through our innovative partnership with The Roman Family Center for Decision Research at The University of Chicago Booth School of Business, we are committed to supporting diverse and robust research that contributes to a deeper understanding of human behavior and decision-making and helps empower leaders to make wiser choices in business and society.
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Understanding how we behave and the decisions we make are critical to building on PIMCO's strong culture Of investing excellence and creating a diverse, engaging workplace. so we are excited to partner on this groundbreaking approach.
— Emmanuel Roman
PIMCO is always looking for inputs and data which challenge our ideas and assumptions about investing and risk and the CDR team can provide us world-class insight into behavioral analysis and trends which will make us a better active manager and stewards Of our clients' assets.
— Daniel J. Ivascyn
Through our partnership with CDR, we advanced PIMCO Decision Research Labs, enabling CDR researchers, leaders in their field, to further their research.
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Mindworks, a behavioral science discovery center and working PIMCO Decision Research Lab, opened in downtown Chicago in 2021. Free and open to the public, it is a great opportunity to engage in interactive exhibits and participate in research studies.
The PIMCO Midway Club
Meeting space is also available at the PIMCO Executive Lounge in Chicago Booths London campus.
We publish behavioral insights and best practices to help our clients better understand the value it delivers and assist them in enhancing their own decision-making processes.
Download our latest insight "Understanding Client Decision-Making Through Behavioral Science".
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More optimized and rational decision-making processes can give investment committees an edge.
Behavioral Science and Volatility
During periods of market volatility, investors often focus on short-term returns instead of long-term goals. This video reviews how financial professionals can help guide investors, thus reducing negative consequences of emotional decision making and providing valuable guidance. Interested in additional Behavioral Science resources? Visit pimco.com/advisoreducation
During periods of extreme market volatility, investors often focus on short-term returns not long-term goals. Learn how advisors can help reduce negative consequences of emotional decision making by providing valuable guidance in this video.
The Fed: Stuck On Hold for Now
Despite the reacceleration of inflation and enduring labor market strength, the Fed remains focused on downside risks.
Why Yield Matters
Attractive starting yields underpin our constructive outlook for fixed income.
Get Ahead: Term Out Your Assets
As central banks eye cutting rates, investors seeking higher returns may consider extending maturities beyond traditional cash investments to lock in today’s high bond yields – and potentially benefit from price appreciation, too.
Preparing for Diverging Economic Paths
Marc Seidner, CIO Non-Traditional Strategies, shares his views on where investors can find relative value opportunities today amid fast-evolving markets.
Various methods to estimate this key bond market gauge differ on details but appear to signal rising investor compensation.
Group CIO Dan Ivascyn discusses the benefits of locking in today’s elevated bond yields ahead of potential central bank rates cuts around the globe.
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Disclosures
All investments contain risk and may lose value. Management risk is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results, and that certain policies or developments may affect the investment techniques available to PIMCO in connection with managing the strategy.
There is no guarantee that these investment Strategies will work under all market conditions Or are appropriate for all investors and each investor should evaluate their ability to invest for the long term, especially during periods of downturn in the market.
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 opinions of the managers 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 LLC in the United States and throughout the world.
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