The team at PIMCO believes that longer-term secular trends in such factors as demographics, political conditions, and structural changes in the economy exert powerful sustained influences on interest rates.
Emphasis is placed on adding value through moderate risk taking across multiple portfolio dimensions such as sector, coupon, and quality combined with volatility analysis.
PIMCO attempts to avoid extreme swings in the maturity and duration of the portfolio in order to achieve consistent performance.
Portfolio Manager, Bill Gross is a three-time winner of Morningstar's Fixed-income Manager of the Year award having earned the recognition in 2007, 2000, and 1998.
Top-down economic analysis serves as the base for PIMCO's portfolio strategy
- Proprietary analytics and bottom-up credit analysis help confirm issue selection
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Managers Fremont Bond Fund
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Bill Gross
Founder
Managing Director
34 Years Industry Experience |
- Founded in 1971
- Manages approximately $829.5 billion as of 6/30/08
- Pioneered use of mortgage-backed securities and emerging market debt
- Firm's annual secular outlook determines general maturity/duration range for portfolios
- Utilizes all major sectors of the fixed-income market
Morningstar Analyst Report: Fixed-Income Fund Managers of the Year for 2007 (01/08)
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Disclosure
Investors should carefully consider the fund's investment objectives, risks, charges, and expenses before investing. For this and other information, please call 800.835.3879 or download a free prospectus. Read it carefully before investing or sending money.
There is no guarantee that these investment strategies will work under all market conditions, and each investor should evaluate their ability to invest for a long-term, especially during periods of downturns in the market.
The Fund is subject to the risks associated with investments in debt securities, such as default risk and fluctuations in the perception of the debtor's ability to pay its creditors.
Changing interest rates may adversely affect the value of an investment. An increase in interest rates typically causes the value of bonds and other fixed income securities to fall.
The Fund may use derivative instruments for hedging purposes or as part of its investment strategy. There is a risk that a derivative intended as a hedge may not perform as expected. The main risk with derivatives is that some types can amplify a gain or loss, potentially earning or losing substantially more money than the actual cost of the derivative or that the counterparty may fail to honor its contract terms, causing a loss for the Fund. Use of these instruments may also involve certain costs and risks such as liquidity risk, interest rate risk, market risk, credit risk, management risk and the risk that a fund could not close out a position when it would be most advantageous to do so.
Investments in international securities are subject to certain risks of overseas investing including currency fluctuations and changes in political and economic conditions, which could result in significant market fluctuations. These risks are magnified in emerging markets.
Many bonds have call provisions which allow the debtors to pay them back before maturity. This is especially true with mortgage securities, which can be paid back anytime. Typically debtors prepay their debt when it is to their advantage (when interest rates drop making a new loan at current rates more attractive), and thus likely to the disadvantage of bondholders, who may have to reinvest prepayment proceeds in securities with lower yields. Prepayment risk will vary depending on the provisions of the security and current interest rates relative to the interest rate of the debt.
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