How does CorePLUS fit for investors who use an asset-liability management framework?
Devlin: Our portfolios are benchmarked to both the DEX Universe and DEX Long indices. Often our clients have spent considerable resources determining the benchmark that best fits their particular liability profile. A properly constructed core plus portfolio should respect the characteristics of the benchmark while generating additional value. Sophisticated risk management systems and processes are required to help ensure that these deviations are precise so that the tracking error of the portfolio to the benchmark is constructed with an optimized risk/return profile. Q: Given the outperformance of CorePLUS in the past three years, what is your outlook for the strategy? Devlin: PIMCO has been using the core plus style for decades. The reason is there is a large universe of strategies that can be incorporated into the portfolios. We implement both top-down macroeconomic strategies and bottom-up sector and security selection. In 2009, markets benefited from the normalization of risk premi
