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PIMCO Launches Unconstrained Bond Strategy
By Un-tethering from Benchmark, Strategy Combines Traditional Characteristics of Core Bond portfolio with Potential for Higher Returns
Contact:

Asako Tanabe
PIMCO - Media relations
+813-5777-8534
presscenter@pimco.com

Singapore, Dec. 16, 2008 – PIMCO, a leading investment management firm, announced today that it has launched the Unconstrained Bond Strategy, which puts the firm’s unique investment process to work for clients in a strategy that is not tethered to benchmark-specific guidelines. The Unconstrained Bond Strategy is managed by PIMCO Managing Director and Portfolio Manager Chris Dialynas.

“The underlying strategy of the Unconstrained Bond Strategy provides greater scope to adjust duration exposure, allocate across sectors, express our active views and tap into our global fixed-income toolkit beyond what is possible with benchmark-oriented strategies. Our approach to the Unconstrained Bond Strategy will be governed by PIMCO’s investment philosophy and disciplined secular process, and we believe the Strategy will benefit from the depth of the firm’s expertise as well as our rigorous focus on risk management,” said Mr. Dialynas.

Key features of the Unconstrained Bond Strategy include:

  • Offer traditional characteristics of a core bond portfolio such as limited downside risk, low correlation with equities, liquidity and diversification
  • Potential to outperform traditional active fixed-income management approaches where the manager may be expected to limit tracking error relative to a benchmark 

The launch of the Unconstrained Bond Strategy is another natural extension of PIMCO’s proven long-term track record in active fixed-income management. Like all PIMCO products, the strategy is guided by PIMCO’s unique secular investment process, which focuses on long-term economic, social and political trends that may have lasting impacts on investment returns. Moreover, over shorter cyclical time frames, the unconstrained nature of the strategy allows PIMCO to take on more risk when PIMCO identifies tactical opportunities, and it allows for reduction and diversification of risk at times when the outlook may be challenging for traditional fixed-income benchmarks.

***

About PIMCO
PIMCO, founded in 1971, is a global investment management firm serving institutional and retail investors worldwide, with offices in London, Amsterdam, Munich, Toronto, New York, Newport Beach, Singapore, Sydney, Hong Kong and Tokyo. PIMCO is owned by Allianz Global Investors, a subsidiary of the Munich-based Allianz Group.

Over the last twelve months, PIMCO has won a number of prestigious awards including Fixed Income Provider of the Year at the Global Pensions Awards and two Awards for Investment Excellence by Global Investor, one in the Global and one in the US Fixed Income category. Co-CIO and founder Bill Gross and his team were awarded the Fixed Income Manager of the Year award by Morningstar for the third time in a decade, the first asset manager to achieve this.

About PIMCO Asia
PIMCO Asia Limited and PIMCO Asia Pte Ltd are part of the PIMCO Group. With more than $64 billion of assets managed or serviced out of the Asia-Pacific region, and more than $790 billion worldwide, PIMCO is one of the world's leading investment management firms.
 


 

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Past performance is not a guarantee or a reliable indicator of future results. Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk; 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. 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 insure against loss. 

Hong Kong 1
PIMCO Asia Limited
24th Floor
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PIMCO Asia Pte Ltd
501 Orchard Road #08-03
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Singapore 238880
65 6491-8000        
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1 Licensed by the Securities and Futures Commission for Types 1, 4 and 9 regulated activities under the Securities and Futures Ordinance (“SFO”).  The services and products provided by PIMCO Asia Limited are available only to professional investors as defined in the SFO.  The asset management services and investment products are not available to persons where provision of such services and products is unauthorised.

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For further information on PIMCO please visit www.singapore.pimco.com

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