![]() ![]() ![]() In 2021, when traditional bond benchmarks faced challenges – the Bloomberg US Aggregate, for example, was down -1.5% – the PIMCO Income Strategy continued to deliver on its objectives. For over 10 years across multiple market environments, the strategy has historically provided high, consistent income and attractive long-term total returns. The track record of the PIMCO Income Strategy’s broad-based approach speaks for itself. Delivering on objectives for over a decade We also focus on liquidity by investing in assets that can be easily bought and sold, even in times of stress.įinally, the strategy benefits from PIMCO’s global scale and depth of sector-specific resources to source new opportunities across the global fixed income universe, to negotiate directly with borrowers, and to minimise transaction costs across markets. This means focusing on high-quality and senior secured bonds that can offer protection when markets go awry. Risk management and assets that “bend but don’t break” are emphasised to withstand market gyrations. We seek consistent income distribution as a driver of total returns over time. To balance yield with capital-preservation investment objectives, the strategy allocates to both high-quality and higher-yielding securities, which tend to perform differently in varying growth environments and can help weather the challenges of changing markets. We take a long-term view, but respond actively to opportunities and overshoots created by market volatility. The PIMCO Income Strategy invests across the entire global bond market, with active credit selection and the ability to tactically adjust duration. With an uncertain path ahead, a balanced and flexible multi-sector approach may provide an opportunity to earn an attractive yield while managing risk. Positioning for consistent income amid unpredictability Delivering on objectives for over a decade.Positioning for consistent income amid unpredictability.The question now is whether this rebound will lead to a resumption of the bull market or turn out to be only a temporary bounce. With all of these problems receding, the surge in equity prices from January onward was understandable, and even predictable. By the end of the year, however, all of these risks had subsided: the Fed executed a dovish U-turn, the US-China trade war moved toward a ceasefire, oil prices fell, and Italy resolved its fiscal clash with the European Commission in a fairly innocuous truce. Investors were understandably worried by four risks last year: overly aggressive US monetary tightening escalation of the US-China trade conflict soaring oil prices (possibly returning to $100 per barrel or higher) and another euro crisis, precipitated by the unprecedented left-right populist coalition that emerged from Italy’s election. The market’s roller-coaster behavior is easy to explain, at least in hindsight. Fears of recession have been completely refuted, and investors who shared the view expressed here in early January – that markets were just going through a bout of irrational panic – have enjoyed the strongest start to a year since 1998. LONDON – With Wall Street hitting all-time highs and the US economy certain to set a new record next month, it seems a lifetime since the despondency in financial markets at the end of last year. ![]()
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