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.