Key topics

PIMCO's outlook


Global economy

PIMCO has maintained its global economic and inflation forecasts

Adopt conservative positioning and favor active portfolio management to protect against bouts of volatility and market illiquidity

U.S. economy

Above-trend economic growth in the 1.75%–2.25% range

Maintain a diversified, actively managed portfolio that can mitigate risks and pursue opportunities created by volatility

European economy

U.K. growth to drop dramatically in the second half of the year, but expect eurozone GDP growth of 1.25%–1.75%

Investment in this environment will require in-depth and experienced research at the country, market and security level

EM economies

There is evidence of more stability in EM, leading to a forecast of 0.75%–1.25% for BRIM

Investors will want to favor active managers with specialized EM expertise to help navigate the countryspecific risks and opportunities


Expect greater dispersion across countries and sectors and a continued outperformance of value stocks

Rely on fundamentals over valuations to guide security selection


Relative opportunities in high quality U.S credit

Consider non-agency mortgage-backed securities and investment grade corporates, where spreads have room to tighten


Muni tax-exempt income will remain attractive but credit selection will prove critical

Focus on tax-equivalent yields when evaluating municipals versus other assets

Fixed Income

Alpha will likely make up a higher proportion of total return

Understand that the index may offer less-attractive characteristics, including longer duration and lower yield


Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund's prospectus and summary prospectus, if available, which may be obtained by contacting your investment professional or PIMCO representative or by visiting Please read them carefully before you invest or send money.

Statements concerning financial market trends or portfolio strategies are based on current market conditions, which will fluctuate. There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors and each investor should evaluate their ability to invest for the long term, especially during periods of downturn in the market. Outlook and strategies are subject to change without notice. Forecasts, estimates and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument.

A word about risk: Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and the current low interest rate environment increases this risk. Current reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed. 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. 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. High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. Derivatives 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. Diversification does not ensure against loss.

This material contains the current opinions of the manager and such opinions are subject to change without notice. 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.