What is the PIMCO Emerging Asia Bond Strategy?

PIMCO’s Emerging Asia Bond Strategy is a diversified portfolio of U.S. dollar– and local currency–denominated sovereign, quasi-sovereign and corporate emerging Asian fixed income instruments, coupled with a global emerging markets (EM) currency overlay. The strategy is designed to take advantage not only of Asia’s favorable fundamentals and strong growth prospects but also of the potential benefits of EM currency appreciation.

The PIMCO Emerging Asia Bond Strategy, leveraging on PIMCO’s disciplined investment process, approaches the opportunity set with the objective of providing attractive risk-adjusted returns. The strategy offers the following features:

  • Potential to benefit from the continued increase in emerging Asia’s share of global growth
  • Low correlation with traditional fixed income asset classes
  • Diversification within the emerging markets asset class
  • Potential yield advantage relative to cash deposit and core fixed income portfolios
  • An EM currency overlay that may mitigate the headwinds facing the U.S. dollar while taking advantage of the generally appealing valuations of EM currencies
  • Potential to balance an investment portfolio by filling the void between the low risk / low potential return embedded in cash and cash deposits and the high risk / high potential returns from equities and real estate investments

​What is PIMCO’s Emerging Markets Investment Approach?

​PIMCO’s Emerging Markets Experience

​Applications for the Emerging Asia Bond Strategy

Sources of Added Value

​Long‑Term Outlook for Emerging Asia

Risk Management / Controls


Past performance is not a guarantee or a reliable indicator of future results. The value of shares can go up as well as down. The strategy may invest a portion of its assets in non-Euro securities, which can entail greater risks due to non-Euro economic and political developments. This risk may be enhanced when investing in Emerging Markets. Investment in a strategy that invests in high-yield, lower-rated securities, will generally involve greater volatility and risk to principal than investments in higher-rated securities. This strategy may use derivative instruments for hedging purposes or as part of its investment strategy. Use of these instruments may involve certain costs and risks. Portfolios investing in derivatives could lose more than the principal amount invested.