A comprehensive retirement solution
The Fund can serve as a complete portfolio for retirement investors expecting to retire around the year 2020. Drawing on the full range of PIMCO mutual funds, as well as exchange-traded funds and individual securities, it is broadly diversified. The “glide path,” or allocation strategy, is dynamically managed, becoming increasingly conservative as the target date approaches. The Fund may also make tactical adjustments based on PIMCO’s long-term economic outlook.
Explicit inflation and tail risk hedging
The Fund seeks to preserve purchasing power by hedging against inflation and severe market losses (“tail events”). Unlike target-date funds that rely heavily on stocks, the Fund also invests in “real return,” or inflation-hedging, assets, such as government inflation-indexed bonds and commodities; the Fund’s managers are also continually evaluating and identifying asset classes or instruments likely to offset catastrophic market declines.
Access to PIMCO’s proven expertise
PIMCO’s asset allocation committee, headed by CEO and co-CIO Mohammed El-Erian, translates the firm’s secular outlook on the economy and financial markets into an optimized blend of risk exposures; this then drives the Fund’s dynamic allocation strategy. PIMCO is also a pioneer in real return, or inflation-focused, investing.
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