Featured Funds

Explore key investment themes and associated PIMCO strategies

Get the Most from Your Credit Allocation

 

Given our baseline view that global economic expansion will strengthen and broaden over the cyclical horizon, which should imply low default rates, we remain positive on the credit sector. The recent rise in interest rates should also be supportive from a technical standpoint, as it will likely lead to less supply and more demand. Against this backdrop, we believe that Diversified Income, a flexible multi-sector credit solution, is an appropriate option because its ability to tap into areas of opportunity across the broad, global credit market provides the tools to capture value. Capital Securities is a second strategy we would recommend, as it continues to benefit from the multi-year deleveraging process taking place in the banking sector, and has not rallied in 2016 to the same extent as other credit sectors. The financial sector may also benefit from loosening regulations and a steepening yield curve in the U.S., which could boost banks’ net interest margins.

PIMCO GIS Diversified Income Fund >
PIMCO GIS Capital Securities Fund >

Seek Value in High Quality Spread Sectors Outside of Corporates

 

As risk assets around the world continue their strong run, investors are looking for high-quality sectors that can help diversify bond allocations without increasing correlation to equity markets. Mortgage markets are well positioned to deliver this because their performance is tied to consumer credit and real estate fundamentals rather than the strength of corporate balance sheets. On this basis, we believe our GIS Mortgage Opportunities Fund, which has the ability to allocate across all subsectors of the global securitised market, is a suitable option.

PIMCO GIS Mortgage Opportunities Fund >

Explore Flexible Asset Allocation Solutions

 

Political and economic risks in places like China, Brazil, and the U.S., coupled with concerns about the level of asset prices, means that investors are in search of solutions with embedded flexibility and a modest volatility profile that allows the manager to navigate a variety of environments. Our solution is the GIS Dynamic Multi-Asset Fund, which offers flexible risk exposure across economic cycles and market conditions.

PIMCO GIS Dynamic Multi-Asset Fund >

Position for a Rebound in Value stocks

 

Nearly a decade of underperformance means that value stocks are exceptionally cheap relative to growth. We believe that over the coming years this dislocation will be corrected, resulting in the outperformance of value stocks. The current environment provides a good entry point for investors to move into strategies that capture the value premium and can benefit from this rebound. We think the GIS RAE Fundamental Emerging Markets Fund, which utilises a systematic, value-oriented approach to investing in emerging market equities, is a good solution for this.

PIMCO GIS RAE Fundamental Emerging Markets Fund >

Disclosures

FOR PROFESSIONAL / QUALIFIED INVESTOR USE ONLY

All data as at 28 February 2017 unless otherwise specified.

Past performance is not a guarantee or a reliable indicator of future results. 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. 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 of 2. PIMCO (Schweiz) GmbH (registriert in der Schweiz, Firmennr. CH-020.4.038.582-2), Brandschenkestrasse 41, 8002 Zürich, Schweiz.

A word about risk: 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. The strategy may invest all of its assets in high-yield, lower-rated, securities which 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 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. Income from municipal bonds may be subject to state and local taxes and at times the alternative minimum tax. 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. Credit default swap (CDS) is an over-the-counter (OTC) agreement between two parties to transfer the credit exposure of fixed income securities; CDS is the most widely used credit derivative instrument. Swaps are a type of privately negotiated derivative; there is no central exchange or market for swap transactions and therefore they are less liquid than exchange-traded instruments. 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.

PIMCO GIS Funds: Global Investors Series plc is an umbrella type open-ended investment company with variable capital and is incorporated with limited liability under the laws of Ireland with registered number 276928. The information is not for use within any country or with respect to any person(s) where such use could constitute a violation of the applicable law. The information contained in this communication is intended to supplement information contained in the prospectus for this Fund and must be read in conjunction therewith. Investors should consider the investment objectives, risks, charges and expenses of these Funds carefully before investing. This and other information is contained in the Fund's prospectus. Please read the prospectus carefully before you invest or send money. Past performance is not a guarantee or a reliable indicator of future results and no guarantee is being made that similar returns will be achieved in the future. Returns are net of fees and other expenses and include reinvestment of dividends. The performance data represents past performance and investment return and principal value will fluctuate so that the PIMCO GIS Funds shares, when redeemed, may be worth more or less than the original cost. Potential differences in performance figures are due to rounding. The Fund may invest in non-U.S. or non-Eurozone securities which involves potentially higher risks including non-U.S. or non-Euro currency fluctuations and political or economic uncertainty. For informational purposes only. Please note that not all Funds are registered for sale in every jurisdiction. Please contact PIMCO for more information. For additional information and/or a copy of the Fund's prospectus, please contact the Administrator: BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich, Switzerland © 2017. Benchmark - Unless otherwise stated in the prospectus or in the relevant key investor information document, the Fund referenced in this material is not managed against a particular benchmark or index, and any reference to a particular benchmark or index in this material is made solely for risk or performance comparison purposes. Additional information - This material may contain additional information, not explicit in the prospectus, on how the Fund or strategy is currently managed. Such information is current as at the date of the presentation and may be subject to change without notice. Investment Restrictions - In accordance with the UCITS regulations and subject to any investment restrictions outlined in the Fund’s prospectus, the Fund may invest over 35% of net assets in different transferable securities and money market instruments issued or guaranteed by any of the following: OECD Governments (provided the relevant issues are investment grade), Government of Singapore, European Investment Bank, European Bank for Reconstruction and Development, International Finance Corporation, International Monetary Fund, Euratom, The Asian Development Bank, European Central Bank, Council of Europe, Eurofima, African Development Bank, International Bank for Reconstruction and Development (The World Bank), The Inter-American Development Bank, European Union, Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), Government National Mortgage Association (Ginnie Mae), Student Loan Marketing Association (Sallie Mae), Federal Home Loan Bank, Federal Farm Credit Bank, Tennessee Valley Authority, Straight-A Funding LLC.

PIMCO Europe Ltd (Company No. 2604517) and PIMCO Europe Ltd - Italy (Company No. 07533910969) are authorised and regulated by the Financial Conduct Authority (25 The North Colonnade, Canary Wharf, London E14 5HS) in the UK. The Italy branch is additionally regulated by the CONSOB in accordance with Article 27 of the Italian Consolidated Financial Act. PIMCO Europe Ltd services and products are available only to professional clients as defined in the Financial Conduct Authority’s Handbook and are not available to individual investors, who should not rely on this communication. | PIMCO Deutschland GmbH (Company No. 192083, Seidlstr. 24-24a, 80335 Munich, Germany) is authorised and regulated by the German Federal Financial Supervisory Authority (BaFin) (Marie-Curie-Str. 24-28, 60439 Frankfurt am Main) in Germany in accordance with Section 32 of the German Banking Act (KWG). The services and products provided by PIMCO Deutschland GmbH are available only to professional clients as defined in Section 31a para. 2 German Securities Trading Act (WpHG). They are not available to individual investors, who should not rely on this communication. | For Switzerland Not for individual investors; This communication is not a public offer and individual investors should not rely on this document. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. PIMCO (Schweiz) GmbH (registered in Switzerland, Company No. CH-020.4.038.582-2), Brandschenkestrasse 41, 8002 Zurich, Switzerland, Tel: + 41 44 512 49 10. The services and products provided by PIMCO Switzerland GmbH are not available to individual investors, who should not rely on this communication but contact their financial adviser. For Switzerland: The prospectus and Key Investor Information Documents (KIIDs), the articles of association as well as the annual and semi-annual reports of the Fund may be obtained free of charge from the representative in Switzerland. Swiss representative and paying agent is BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich, Switzerland. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. ©2017, PIMCO.