TEXT ON SCREEN: PIMCO
TEXT ON SCREEN: JIM MASTURZO, CIO, Research Affiliates
MASTURZO: All Asset takes the traditional way a portfolio was created, centered on say US or mainstream stocks and bonds, and flips it on its head.
We focus on diversifiers, real assets like TIPS, commodities, REITs, as well as international assets, emerging market stocks and bonds in particular.
And we focus on those whereas the mainstream stocks become corollaries to that.
TEXT ON SCREEN: ROB ARNOTT, Founder and Chairman, Research Affiliates
ARNOTT: Our simple goal when we launched was to create a comprehensive solution for diversification, complementing mainstream equity and bond allocations that tended to dominate both institutional and individual investor portfolios. That goal is no less worthy today than it was in 2002.
IMAGES ON SCREEN: Stock Ticker; Text on screen: All Asset is designed to complement mainstream equity and bond allocations
Diversifiers are most needed when they are least popular. Right now we're in an environment where diversification is not very popular because for the last 15 years we've had
IMAGES ON SCREEN: Skyscrapers + cranes (construction boom)
that rip-roaring growth-dominated bull market. All such markets eventually come to an end.
MASTURZO: All Asset is a quantitative process that is based on fundamental valuations. We start with a set of long-term capital market expectations, not based on the historical return of asset classes, but we look at the actual fundamentals today to project what the expected returns will be going forward. That serves as a grounding mechanism to come up with the positions for the next 10 years.
ARNOTT: Nobody knows when the turn's gonna happen. And so we'll average into a market that's cheap. Don't buy at the moment it's cheap. Buy a little bit when it becomes cheap, buy a little more if it becomes cheaper, buy a little more if the momentum turns and it's still cheap.
TEXT ON SCREEN: Q: Why not diversify?
Why not diversify?
So when you have momentum turning, currency risk in your favor for non-US allocations, and relative valuations pointing in the direction of abnormally good opportunities, that's a great time to invest.
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TEXT ON SCREEN: PIMCO
Disclosures
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 www.pimco.com. Please read them carefully before you invest or send money.
Past performance is not a guarantee or a reliable indicator of future results.
Investments made by a Fund and the results achieved by a Fund are not expected to be the same as those made by any other PIMCO-advised Fund, including those with a similar name, investment objective or policies. A new or smaller Fund’s performance may not represent how the Fund is expected to or may perform in the long-term. New Funds have limited operating histories for investors to evaluate and new and smaller Funds may not attract sufficient assets to achieve investment and trading efficiencies. A Fund may be forced to sell a comparatively large portion of its portfolio to meet significant shareholder redemptions for cash, or hold a comparatively large portion of its portfolio in cash due to significant share purchases for cash, in each case when the Fund otherwise would not seek to do so, which may adversely affect performance.
A word about risk: The PIMCO All Asset Fund and All Asset All Authority Funds invest in other PIMCO funds and performance is subject to underlying investment weightings which will vary. 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 low interest rate environments increase this risk. 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. Commodities contain heightened risk including market, political, regulatory, and natural conditions, and may not be appropriate for all investors. 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. REITs are subject to risk, such as poor performance by the manager, adverse changes to tax laws or failure to qualify for tax-free pass-through of income. 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. Investing in securities of smaller companies tends to be more volatile and less liquid than securities of larger companies. 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. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. Derivatives and commodity-linked 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. Commodity-linked derivative instruments may involve additional costs and risks such as changes in commodity index volatility or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Investing in derivatives could lose more than the amount invested. The cost of investing in the Fund will generally be higher than the cost of investing in a fund that invests directly in individual stocks and bonds. The Funds are non-diversified, which means that it may invest its assets in a smaller number of issuers than a diversified fund. The All Asset All Authority Fund typically uses leverage by borrowing for investment purposes to purchase additional shares of other PIMCO funds in an effort to increase portfolio returns. Leveraging transactions, including borrowing, may cause a portfolio to be more volatile than if the portfolio had not been leveraged. Leveraging transactions typically involve expenses. When these interest expenses exceed the rate of return on investments purchased by the fund, with such leverage can reduce fund returns. The use of leverage may cause a portfolio to liquidate positions when it may not be advantageous to do so. Leveraging transactions may increase the fund’s sensitivity to interest rate movements.
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 appropriate 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.
The terms “cheap” and “rich” as used herein generally refer to a security or asset class that is deemed to be substantially under- or overpriced compared to both its historical average as well as to the investment manager’s future expectations. There is no guarantee of future results or that a security’s valuation will ensure a profit or protect against a loss.
PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the 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. 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. PIMCO is a trademark of Allianz Asset Management of America LLC in the United States and throughout the world. ©2026, PIMCO.
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