PIMCO GIS Glb Rl Ret E EURH Acc |
by Shannon Kirwin
Pimco Global Real Return's four seasoned managers draw on the firm’s extensive resources to execute this risk-aware strategy. It retains its People Pillar rating of Above Average and Process Pillar rating of High. European rates head Lorenzo Pagani has overseen this global inflation-bond fund since 2019, supported by three stalwart government-bond specialists. Longtime Pimco European rates manager Yi Qiao joins Pagani in focusing on the day-to-day management of the fund’s non-U.S. exposures. The portfolio’s U.S. Treasury Inflation Protected Security sleeve is overseen by Steve Rodosky, Pimco’s lead TIPS expert and its former head of U.S. Treasury strategies, and his comanager Daniel He, who joined the group after more than a decade trading mortgages and derivatives. Following some turnover in 2020, the team has worked together in its current formation for roughly four years. The group’s deep knowledge of the global government-bond universe is a key strength here, as bottom-up, relative value trades within global inflation-protected bond markets are an essential element of the approach. The managers also benefit from Pimco’s firmwide macro expertise in adjusting the portfolio’s top-down risk exposures, including its duration, yield-curve positioning, and level of credit risk. They make full use of their wide latitude to tread beyond their Bloomberg World Inflation-Linked Index benchmark, having, at times, invested up to 20% of the portfolio in non-inflation-linked fare, such as corporate, securitized, and emerging-markets debt, as well as currencies. Here, they rely on recommendations from Pimco’s deep sector specialist teams. That broad mix of active investment strategies has served investors well so far. From Pagani’s January 2019 arrival through November 2023, the strategy’s institutional share class has handily outperformed both its Bloomberg World Inflation-Linked Index and the U.S. dollar-hedged global inflation-linked bond Morningstar Category average. |
Morningstar Pillars | |
People | Above Average |
Parent | Above Average |
Process | High |
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