Content (14)

  • Global CDI portfolios: to hedge or not to hedge?

    White papers

    Global CDI portfolios: to hedge or not to hedge?

    2019-11-11T11:55:00Z

    In previous articles, we argued that globally focused and actively managed core CDI portfolios could help UK DB schemes better meet future liabilities. However, given that the very objective of CDI portfolios is to generate predictable cash flows, the issue of currency management becomes crucial. Here, we explore various hedging strategies that schemes can employ and assess their effectiveness in delivering predictable cash flows in sterling.

  • cdi portfolio construction considerations

    White papers

    CDI portfolio construction considerations

    2019-09-01T09:40:00Z

    In a recent article, we warned that the generally underfunded and increasingly cashflow-negative UK Defined Benefit (DB) pension sector could see its funding status challenged, especially in the present late-cycle environment. We argued that a Cashflow Driven Investment (CDI) approach could be a solution, to help meet liability payouts with a high degree of certainty. Let’s now roll up our sleeves and explore how CDI could be brought into action. Should schemes solely focus on Sterling denominated assets? Should portfolios be managed actively?

  • CDI: Does it make sense for UK DB schemes?

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    CDI: Does it make sense for UK DB schemes?

    2019-06-10T12:59:00Z

    Soraya Kazziha, PIMCO’s Head of EMEA Client Solutions and Analytics, Rene Martel, PIMCO’s Head of Retirement Solutions and Michael Burns, Head of the UK and Ireland Institutional Sales Team. 

  • pimco asset allocation views

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    Asset allocation views: Late cycle vs. end cycle investing

    2019-04-02T09:16:00Z

    Here are key takeaways from PIMCO’s 2019 Asset Allocation Outlook on how we are positioning asset allocation portfolios in light of our outlook for the global economy and markets.

  • pimco ipe december 2018

    White papers

    ESG investing and fixed income: The next new normal?

    2018-12-01T12:17:00Z

    We believe the bond market is uniquely suited to both benefit from and provide finance for ESG-related (environmental, social and governance) efforts.

  • screen shot 2017 10 26 at 11.24.16

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    Mind The Gap

    2017-11-01T10:32:00Z

    The term “funding gap” must be one of the most popular to be found in asset managers’ marketing presentations, especially since the global financial crisis. The opportunity to supply capital where there is less competition is intuitively appealing, but investors should heed the warning they announce on the London Underground to “mind the gap”. Funding gaps, like the gaps between the trains and the platform, both open and close, and now is the time for asset managers marketing presentations to become far more specific in their use of the term.

  • White papers

    Bonds Are Different: The Active Advantage

    2017-07-01T12:48:00Z

    Ask an investor if most active bond funds outperform their passive counterparts and the response is likely to be “no.”

  • PIMCO - Active vs passive in credit indexes equal opportunity

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    Active vs Passive: In credit, indexes equal opportunity

    2017-04-01T00:00:00Z

    In April, more than 1,000 bonds worth over $300 billion will vanish from the Bloomberg Barclays U.S. Aggregate Index. Their disappearance reflects market dynamics that tend to benefit active fixed income managers with robust research processes while putting passive investment managers at a disadvantage.

  • common goals your impact

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    Common Goals, Your Impact

    2017-03-01T11:16:00Z

    The United Nations Sustainable Development Goals (SDGs) can serve as a framework for measuring impact in environmental, social and governance (ESG)-focused investing.

  • pimco ipe feb 2017 thumbnail

    White papers

    Active vs passive: Five reasons bonds are different

    2017-02-01T11:25:00Z

    Academic literature is replete with studies making the case against active management. At the core of the argument is some basic math: in sum, the performance of all investors aggregates to the performance of the markets. Throw in fees, and the average net return above the market for active investors is negative. 

  • pimco ipe january 2017 thumbnail

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    PIMCO’s Asset Allocation Views: The Trump Card

    2017-01-11T10:00:00Z

    Developed markets have turned optimistic after the US presidential election, pricing in higher inflation and GDP growth in the US. Asset markets have reacted, with US equity markets rallying, global interest rates rising and yield curves steepening. Nevertheless, substantial uncertainty still looms around policies that are intended by the new administration and those that will actually be enacted.

  • pimco the carry and value pendulum thumbnail

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    The carry and value pendulum

    2016-12-08T17:01:00Z

    Carry originated as a concept from the fixed income and currency worlds. Carry can be defined in currencies, commodities and equities. Value as an investment style, on the other hand, originated from the equity world. Value strategies require the definition of a value metric which can then be compared across securities. Again the concept of value can also be de ned across rates, commodities, and currencies.