AMP AIT Global Fixed Interest

PIMCO’s investment process combines macro (or top-down) strategies with (bottom-up) stock selection strategies. PIMCO take long-term positions with issuers that have strong underlying businesses. They prefer to avoid short-term market timing and trading activities. The majority of the portfolio is invested in government bonds and high quality asset backed securities. The average credit rating of the portfolio must be at least ‘A’ from (Standard & Poor’s). The PIMCO portfolio is broadly diversified and will tend to hold at least 100 securities. BlackRock incorporates both a top down and bottom up component in the investment decision making process, although BlackRock aims to generate returns by focusing more on short-term opportunities rather than by taking long-term positions. The minimum average credit rating of the fund being ‘A’. The portfolio is well diversified with BlackRock ensuring that no one exposure dominates the return of the fund.