What is the PIMCO Unconstrained Tax Managed Bond Strategy, and what are its investment objectives?
The Unconstrained Tax Managed Bond Strategy is designed to target attractive after-tax returns over a full market cycle, three to five years. The strategy represents the full expression of PIMCO’s secular investment philosophy and process in an actively managed tax-efficient portfolio. The strategy combines a significant allocation (at least 50% of total assets) to municipal bonds – with their income exempt from federal and, in some cases, state tax – but also consists of a flexible multi-sector core fixed income portfolio that targets alpha across the full range of global markets. Because the broad allocation to all fixed income markets is not constrained by benchmark-specific guidelines, the portfolio managers have greater flexibility than more traditional, benchmark constrained strategies to adjust duration, allocate across sectors and actively express the full range of PIMCO’s global economic views by taking more risk in sectors, markets or geographic areas where we see strong tact
