How do the Unconstrained Bond and Unconstrained Tax Managed Bond Strategies differ from PIMCO’s Total Return Strategy?
Kim: The same PIMCO investment process and philosophy that underpin our top-down secular and cyclical outlooks and rigorous bottom-up analysis create the base for all three strategies. Essentially, their “inputs” are the same. However, the specific approaches, investment guidelines and risk tolerances vary for the three strategies, as we have summarized in the table below. Q: Can you describe the overall objective and design of the Unconstrained Bond Strategy? Dialynas: The strategy aims to deliver attractive returns and preserve capital over a full market cycle using an approach that is not tethered to benchmark-specific guidelines or related tracking error limitations. The strategy is absolute return-oriented, fixed income-based and investment grade overall. It is designed to have the flexibility to adjust duration, allocate across sectors and express global economic views to a greater degree than a benchmark-constrained strategy. Therefore, the strategy can assume more risk in areas
