Strategy Overview
A GNMA strategy offers investors efficient exposure to the mortgage-backed securities market, the largest sector of the global fixed income market, with a focus on U.S. government–guaranteed GNMA securities.

Potential benefits of a GNMA strategy:

  • May offer yield premium relative to Treasuries, with high credit quality and liquidity
  • Aims to provide excess returns through active management focused on total return
  • Improved portfolio diversification

The strategy employs a unique approach to the mortgage-backed securities (MBS) market that emphasizes actively managed exposure to Agency-guaranteed MBS. The Agency mortgage market has been a critical source of excess return opportunity for PIMCO since its founding, and the firm has a dedicated team of career mortgage portfolio managers. The strategy has a disciplined focus on value and security selection, which is supported by a sophisticated analytical platform that helps identify mispriced securities presenting attractive investment opportunities.

Applications for the GNMA strategy

Investment Philosophy and Sources of Added Value

Risk Management/Controls

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How To Invest

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Fixed Income


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 certain risks including market, interest-rate, issuer, credit, and inflation risk. 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. PIMCO strategies utilize derivatives which 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.The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio. There is no guarantee that these investment strategies will work under all market conditions and each investor should evaluate their ability to invest for a long-term especially during periods of downturn in the market. Diversification does not ensure against loss.

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.