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.