Strategy Overview

In a complex and constantly evolving global economy where sudden market shocks or “black swans” occur with alarming frequency, investors need to reassess how to best achieve their investment objectives while managing downside risk. In the new investment landscape, simply investing in stocks and bonds may not be enough and investors should consider additional sources of portfolio diversification. The Global Multi-Asset strategy is a comprehensive asset allocation solution and designed to be a complete expression of PIMCO’s macroeconomic investment views across major asset classes including global equities, global bonds, diversified commodities and real estate.

The strategy combines a differentiated “risk factor”–based approach to asset allocation with PIMCO’s strategic insight on the global macroeconomy to construct a portfolio that is highly diversified not only across asset classes, but also across global risk factors. Another key differentiating feature of the investment strategy is the use of a systematic approach to tail risk hedging that seeks to help protect the portfolio against sudden market shocks by purchasing inexpensive hedges across various liquid markets.

The strategy offers daily liquidity to investors and obtains desired portfolio exposures through a combination of various PIMCO strategies, unaffiliated funds (e.g., Exchange Traded Funds [ETFs]) and direct security holdings. The portfolio is managed by a team of three highly experienced portfolio managers.

Applications for the Global Multi‑Asset Strategy

Investment Philosophy and Sources of Added Value

Risk Management/Controls


Past performance is not a guarantee or a reliable indicator of future results. All investments contain risk and may lose value. Absolute return portfolios may not fully participate in strong positive market rallies. Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and the current low interest rate environment increases this risk. Current reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond 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. Commodities contain heightened risk including market, political, regulatory, and natural conditions, and may not be suitable for all investors. The value of real estate and portfolios that invest in real estate may fluctuate due to: losses from casualty or condemnation, changes in local and general economic conditions, supply and demand, interest rates, property tax rates, regulatory limitations on rents, zoning laws, and operating expenses. PIMCO strategies utilize derivatives which 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. There is no guarantee that this investment strategy will work under all market conditions or are suitable for all investors and each investor should evaluate their ability to invest for a long-term especially during periods of downturn in the market. Diversification does not ensure against loss. Investors should consult their investment professional prior to making an investment decision.

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.