A comprehensive way to hedge inflation risks
By investing in a blend of inflation-related strategies, the fund seeks to help preserve and grow purchasing power, enhance portfolio diversification, and guard against market shocks across varying inflation environments.
Why Invest In This Fund
Potential diversification benefits
Unlike conventional stocks and bonds, inflation-related assets tend to have a positive correlation, or tendency to move in lockstep, with inflation. Including them in a portfolio may therefore enhance diversification while helping to hedge inflation risk. Diversification does not assure a profit or protect against loss.
Explicit tail risk hedging
In a global economy that is likely to experience continued periods of market stress, PIMCO believes that tail risk hedging is essential for preserving and enhancing long-term portfolio returns. To that end, the fund employs an array of strategies designed to help limit losses during large and unanticipated market downturns.
Real return expertise
PIMCO remains one of the world’s largest investors in inflation-related assets. By drawing on the expertise of our global real return team, as well as PIMCO’s firmwide resources, the fund is able to take advantage of our macro inflation outlook and bottom-up research capabilities.
The fund 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, and Nicholas Johnson, executive vice president who focuses on commodities and multi-asset portfolios. PIMCO, one of the largest U.S. investors in TIPS and a leading global commodities manager, has been managing real return portfolios for nearly two decades.
45% Barclays U.S. TIPS Index, 20% Dow Jones-UBS Commodity Index Total Return, 15% JPMorgan Emerging Local Markets Index Plus (Unhedged), 10% Dow Jones U.S. Select REIT Total Return Index, 10% Dow Jones-UBS Gold Subindex Total Return Index
PRIMARY BENCHMARK DESCRIPTION
The benchmark is a blend of 45% Barclays U.S. TIPS Index, 20% Dow Jones-UBS Commodity Index Total Return, 15% JPMorgan Emerging Local Markets Index Plus (Unhedged), 10% Dow Jones U.S. Select REIT Total Return Index, 10% Dow Jones-UBS Gold Subindex Total Return Index. Barclays U.S. TIPS Index is an unmanaged market index comprised of all U.S. Treasury Inflation-Protected Securities rated investment grade (Baa3 or better), have at least one year to final maturity, and at least $250 million par amount outstanding. Performance data for this index prior to October 1997 represents returns of the Barclays Inflation Notes Index. Dow Jones-UBS 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. JPMorgan Emerging Local Markets Index Plus (Unhedged) tracks total returns for local-currency-denominated money market instruments in 22 emer
SHARE CLASS INCEPTION