What is the PIMCO Long Duration Strategy?
PIMCO’s long duration portfolios are core fixed income portfolios with durations longer than six years that seek to maximize total return, consistent with the preservation of capital and prudent investment management. With our long duration assignments, we utilize all major sectors of the bond market within the scope of the client’s tailored guidelines. The PIMCO long duration philosophy is guided by three major principles:

  1. Pursue active management that makes strategic investment decisions based on a combination of a secular macroeconomic focus and changing cyclical market trends

  2. Diversify risk while maintaining a high average credit quality

  3. Enhance asset-liability matching through advanced proprietary modeling

PIMCO's Long Duration Experience

Applications for Long Duration

Investment Philosophy for Long Duration

Risk Management/Controls

How To Invest

Related Strategies

Fixed Income

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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. 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. Sovereign securities are generally backed by the issuing government, obligations of U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value. 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. Real return or inflation-linked bonds (ILBs) issued by a government are fixed-income securities whose principal value is periodically adjusted according to the rate of inflation; ILBs decline in value when real interest rates rise. 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 this investment strategy 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.

Barclays Capital Long Term Government/Credit Index is an unmanaged index of U.S. Government or Investment Grade Credit Securities having a maturity of 10 years or more. Barclays Capital Long-Term Treasury consists of U.S. Treasury issues with maturities of 10 or more years. It is not possible to invest directly in an unmanaged index.

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.