Founded on the principle of diversification, the Canadian Tactical Bond Strategy is designed for investors seeking to achieve the following objectives:
The PIMCO Canadian Tactical Bond Strategy seeks to deliver attractive risk-adjusted return by investing in a broad range of fixed income securities, without significant sector or instrument limitations. By investing in many different types of bonds, the strategy aims to deliver the following potential benefits to investors:
The extra investment discretion that is afforded to the Tactical Bond Strategy allows PIMCO additional flexibility to help minimize the potential for negative returns, by defensively positioning the portfolio. For example, during an anticipated rising rate environment, the Tactical Bond Strategy may substantially eliminate interest rate exposure. In addition, consistent with all PIMCO strategies, the Tactical Bond Strategy is built on PIMCO’s strong culture of risk management.
The firm’s investment process utilizes both “top-down” and “bottom-up” strategies with the goal of combining perspectives from both the portfolio and security levels in an effort to consistently add value over time within acceptable levels of portfolio risk.
Top-down strategies focus on duration, yield curve positioning, volatility and sector rotation. These strategies are driven by our secular outlook of the forces likely to influence the economy and financial markets over the next three to five years, as well as our cyclical views over a six- to 12-month time horizon.
Bottom-up strategies drive our security selection process and facilitate the identification and analysis of undervalued securities. Here, we employ advanced proprietary analytics and expertise in all major fixed income sectors.
The PIMCO Canadian Tactical Bond Strategy is governed by PIMCO’s investment philosophy and unique, disciplined secular investment process. 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 more challenging for traditional fixed income benchmarks.
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 L.P. in the United States and throughout the world. PIMCO Canada Corp., 199 Bay Street, Suite 2050, Commerce Court Station, P.O. Box 363, Toronto, ON, M5L 1G2, 416-368-3350. ©2017, PIMCO.
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