What is the PIMCO Euro Bond Strategy?​

The Euro Bond Strategy focuses on both coupon yield and capital appreciation. Many bond portfolios focus solely on yield, but bonds also provide capital gains. The return calculation that takes into account both interest income and capital gains is known as “Total Return.” PIMCO’s Euro Bond Strategy is a total return strategy that seeks to maximize price appreciation and current income while maintaining index-like volatility. While the majority of portfolio assets will normally be invested in euro-denominated securities, there will also be allocations to global securities, which are normally currency hedged back to euros. We utilize all major sectors of the bond markets to implement a diversified set of strategies including country, currency and sector rotation, yield curve positioning and duration management.

Our Experience

Applications for the Euro Bond Strategy

Investment Philosophy

Economic Evaluation Process

Sources of Added Value

Risk Management


Past performance is not a guarantee or a reliable indicator of future results. The value of shares can go up as well as down. The strategy may invest a portion of its assets in non-Euro securities, which can entail greater risks due to non-Euro economic and political developments. This risk may be enhanced when investing in Emerging Markets. Investment in a strategy that invests in high-yield, lower-rated securities, will generally involve greater volatility and risk to principal than investments in higher-rated securities. This strategy may use derivative instruments for hedging purposes or as part of its investment strategy. Use of these instruments may involve certain costs and risks. Portfolios investing in derivatives could lose more than the principal amount invested.