- Aims to achieve high real returns (returns above inflation) consistent with its benchmark of CPI +5% over a full market cycle
- Focuses on “third pillar” assets – those with a low correlation to traditional first- (developed market stocks) and second-pillar (U.S. core bonds) asset classes – may enhance investors’ return potential
- Offers broader diversification and inflation protection potential than a traditional portfolio of just stocks, bonds and cash
- Benefits from PIMCO’s time-tested investment process and active management experience across asset classes
- Managed by PIMCO, one of the country’s top investment management firms, and sub-advised by Research Affiliates, an expert in innovative asset allocation strategies and market research
Process & Philosophy
All Asset Philosophy
All Asset Managed Account portfolios can access the full spectrum of actively managed PIMCO open-end mutual funds and ETFs – a global opportunity set that includes developed and emerging market stocks and bonds, liquid alternative investments and inflation-related assets. The strategy seeks high long-term real returns through a value-oriented, contrarian asset allocation approach – emphasizing asset classes with fundamentally attractive (low) valuations and rotating out of positions that have gained and risk being overvalued. By actively allocating in this manner across a wide variety of asset classes, the strategy offers investors a diversifying investment approach as compared to traditional stock/bond-centric portfolios.
All Asset Managed Account delivers two levels of expert management:
The strategy’s opportunity set consists solely of underlying funds managed by our portfolio managers at PIMCO. We pursue attractive risk-adjusted returns and “alpha,” or excess returns, while seeking to manage risk. Our investment process is anchored by our belief that a disciplined focus on long-term fundamentals provides an important economic backdrop against which we identify opportunities and risk, and implement long-term investment strategies. This top-down approach is supported by the bottom-up expertise of more than 50 global credit research analysts.
Asset allocation is managed by the fund’s subadvisor, Research Affiliates, LLC.
Founded by Rob Arnott in 2002, Research Affiliates is a global leader in research-driven asset allocation strategies with more than 50 investment professionals.
In determining the strategy’s allocation, Rob Arnott and his expert team employ a disciplined, model-driven process that relies on a number of essential building blocks, including the long-term real return potential of each asset class, equity and bond risk premiums and proprietary active asset allocation models. Key members of Research Affiliates’ team meet at least monthly with investment professionals from PIMCO to review the portfolio allocations from a qualitative perspective in order to consider potentially important macroeconomic factors that would be missed by a purely model-driven, quantitative investment process.