What is Low Duration?
PIMCO’s Low Duration strategy seeks maximum total return, consistent with preservation of capital and prudent investment management. The strategy aims to produce low volatility of returns and minimal credit risk without sacrificing liquidity. Low duration strategies invest within a diversified range of fixed income securities while maintaining average portfolio duration of one to three years under most market conditions. The strategy extends duration beyond traditional money market and short-term vehicles to develop a greater opportunity set from which to invest, thus potentially generating excess relative returns. The Low Duration strategy focuses on the higher yielding sectors while attempting to maximize expected total return. PIMCO’s analytical capabilities assist in the selection of these securities.