Bolster inflation-fighting potential
Harnessing PIMCO’s innovative Double Real® approach, the fund allows investors to access broad commodity market returns, with enhanced return potential from Treasury Inflation-Protected Securities (TIPS) collateral.
Why Invest In This Fund
A Double Real index strategy
The fund seeks to capture the performance potential of commodities through derivative exposure to the broad-based Bloomberg Commodity Index. The fund collateralizes this exposure with a portfolio of TIPS that is designed to serve as an additional source of return and inflation hedge.
Inflation-hedging, diversification potential
Commodities have had a positive correlation with inflation, typically appreciating when inflation spikes; they also have had low or negative correlation with stocks and bonds, which can enhance portfolio diversification. It should be noted that commodities may be volatile and that diversification doesn’t protect against loss.
The fund seeks to capitalize on PIMCO’s long-standing experience in commodity-linked derivatives and TIPS. The management team looks to add value by avoiding the inefficiencies of passive commodity indexing, seeking out additional excess return opportunities within commodity markets and actively managing the collateral portfolio.
The strategy is managed by veteran real return investors Mihir Worah, CIO Real Return and Asset Allocation and head of the real return and multi-asset portfolio management teams, Nicholas Johnson and Jeremie Banet. A leading global commodities manager, PIMCO launched its first enhanced index strategy two decades ago and its first commodity-linked strategy in 2002.
Bloomberg Commodity Index Total Return
PRIMARY BENCHMARK DESCRIPTION
Bloomberg Commodity Index Total Return is an unmanaged index composed of futures contracts on 20 physical commodities. The index is designed to be a highly liquid and diversified benchmark for commodities as an asset class. It is not possible to invest directly in an unmanaged index.
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