Transcript Presentation on Lorem Ipsum to: ABC Company Date

PIMCO
Your Global Investment
Authority
Shiyan Huang
Qiuyi Han
Jie Ma
Menglei Lu
Jiawen Lu
Yuyang Wu
Yihan Zhang
Xiaotong Zhang
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Introduction
Background
Timeline
Mutual Fund & Hedge Fund
Operation
Products
Asset Allocation Strategies
Solutions
Risks
Regulation
Bill Gross’ Leaving
SWOT Analysis
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PIMCO
 Pacific Investment Management Company, LLC
 Global Investment Management firm
 Headquarter: Newport Beach, California
 As of March 31,2015
$1.59 trillion assets under management
2,444 total employees
775 investment professionals
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What does PIMCO do?
 Manage investments for a wide range of
clients:public and private pension and retirement
plans, other assets
 Act as advisors and asset managers to companies,
central banks, educational institutions, financial
advisors, foundations and endowments
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Timeline
Officially
Incorporated
(1971)
Created new
investment
manager
structure (1973)
Became an
independent
company (1980)
Began to manage StocksPLUS
portable alpha strategies (1986)
Expanded into international
bonds and currencies (1987)
Adopted a
secular
view(1982)
Introduced a mutual fund (1987)
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William Thomson
became CEO (1993)
Marked the launch of the total
return strategy as an
exchange-traded fund (2014)
PIMCO Shares trade
publicly (1994)
Bill Gross left and joined Janus
Capital Group (2014). The
company’s valuation fell to
$163 billion when the peak
valuation is $293 billion.
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Mutual
Fund
&
Hedge
Fund
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ECONOMY
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What are they?
Managed portfolios.
Portions of the fund are sold to
investors.
Same economic function.
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ECONOMY
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Difference
Regulation
Investors
Investment strategies
Short positions & derivatives
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ECONOMY
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Mutual Fund
Mutual funds have become
extremely popular over the past 20
years.
One half of the households in the
U.S. invest in mutual funds.
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ECONOMY
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Advantages of Mutual Fund
Professional management
Economies of scale
Liquidity
Diversification
Simplicity
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ECONOMY
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Operation
Investments
Asset Allocation Strategies
Solutions
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Investments
Cash &
Short Duration
Fix Income
Equity
Real Assets
Currency
Alternatives
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FINANCIAL MARKETS
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Cash &
Short Duration
 Liquidity
 Principal preservation
 Consistent income
 Money market
 Short maturity fixed income
securities
Unique economic forecasting
Close monitoring of the
Federal Reserve
Fixed income expertise
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FINANCIAL MARKETS
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Money Market
Money
Market
Short Term
Short
Term
Short Duration
Principal
preservation
Maintaining the
highest credit rating
Longer maturities
instruments
Additional potential
for attractive returns
Maximize total return
Minimize volatility and preserving capital
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FINANCIAL MARKETS
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Fixed Income
 Regular income
 Preservation of capital
 Portfolio diversification
 Hedge
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FINANCIAL MARKETS
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Fixed Income
Absolute Return
• Minimize systematic exposure
• Seek to offer diversification, attractive risk-adjusted returns and capital preservation
Core U.S.
• Steady income, capital gains, diversification and a hedge against volatility
Credit
• Securities from global issuers across the credit spectrum and capital structure
• From investment grade to high yield
Emerging Markets
• Seek to capitalize on the favorable outlook for select developing economies
Global
• Invest in a broad range of fixed income securities and global currencies
Income
• Maximize current income
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FINANCIAL MARKETS
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Equity
Equity strategies offer the
potential for attractive longterm returns relative to other
asset classes as well as a high
level of liquidity.
Core holdings
Balanced portfolios
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Active Stock
Selection
Equity
Market
Neutral
Emerging
Multi-Asset
Strategy
Stocks Plus
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Real Assets
Aim to have either an explicit or
implicit return correlation to
inflation
 Enhance portfolio
diversification
 Mitigate inflation risk
 Provide more stable real
returns
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Inflationlinked bonds
Commodities
Some
combination
of those
assets
Real estate
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Currency
Provide efficient and risk-aware
portfolio diversification
Target opportunities to exploit
structural inefficiencies and
valuation misalignments in global
currency markets
Offer exposure to select
developed and developing
economies
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FINANCIAL MARKETS
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Alternatives
Offer opportunistic/distressed and
hedge fund strategies
Seek to deliver attractive risk
adjusted returns across all market
cycles
Focus on global macro, credit
relative value, volatility arbitrage
and distressed mortgage and
corporate credit opportunities
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FINANCIAL MARKETS
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Operation
Investments
Asset Allocation Strategies
Solutions
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PIMCO’s Asset Allocation
These strategies seek
attractive risk
adjusted returns and
true portfolio
diversification
utilizing dynamic
multi asset and risk
factor solutions.
All
AllAsset
Asset
Strategy
Strategy
Emerging
Emerging
Multi-Asset
Multi-Asset
Strategy
Strategy
Diversified
Diversified
Real Asset
Asset
Real
Strategy
Strategy
Asset
Asset
Allocation
Allocation
Global
Global
MultiMultiAsset
Asset
Strategy
Strategy
Tail Risk
Risk
Tail
Strategy
Strategy
Real
Real
Retirement
Retiremen
tTarget
Target
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All Asset Strategy
All Asset Strategies has
one simple goal: Deliver
significant real returns
with modest volatility,
which requires PIMCO to
1. Hedge inflation risk
2. Provide a compelling
level of total return
potential
3. Choose mainstream
stocks and bonds
Investment Process
1) Evaluate each underlying investment , evaluate its
long-term real return potential by assessing its current
yield and expected income growth
2) Add potential value since each underlying
investment is actively managed by PIMCO
3) Change valuation : Key valuation metrics are evaluated
for each underlying investment in order to assess absolute and
relative value
4) Impact from Economic and Technical Factors:
Additional inputs are considered to refine return and
risk forecasts
5) Consider subjective opinions from experts who
4. Deliver these
characteristics with
modest total volatility
possess a wide depth and breadth of experience across
various global asset classes.
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Emerging Multi-Asset Strategy
The PIMCO Emerging Multi-Asset Strategy is designed to provide a
opportunity for investors to invest in the broad emerging markets .This
includes EM equities, local and external EM sovereign debt, EM corporate
bonds and EM currencies.
Investment Process
Build
the
“Beta”
Add the
“Alpha”
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Hedge
the
“Tails”
ECONOMY
A passive buyand-hold
investment
approach.
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Tail Risk Strategy
Tail Risk arises when the
possibility that an
investment will move
more than three
standard deviations
from the mean is
greater than what is
shown by a normal
distribution.
PIMCO constructs
asymmetric hedge
overlay portfolios
that help clients
mitigate portfolio
downside risk.
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ECONOMY
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Operation
Investments
Asset Allocation Strategies
Solutions
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Solution
PIMCO
continues to
evolve as a
global
investment
solutions
provider.
For Institutions
For Individuals
For Advisors
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Solution
 Brings together proven
macroeconomic forecasting,
authoritative sector and security
analysis, and rigorous risk
management to help clients meet
the challenges of a rapidly
changing world.
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Solution-Clients
PIMCO offers investment solutions
tailored to specific types of investors,
from individual and institutional
investors to central banks to
retirement plans covering millions of
people around the world, among
others. Our dedicated teams of
investment professionals with deep
industry knowledge provide superior
service and address the specific
needs of our broad range of clients.
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 Retirement
 Financial Institutions
 Educational Institutions,
Foundations and Not-forProfit Organizations
 Healthcare Organizations
 Multiemployer Pension
Plans
 Consultants
 Corporations
 Public Pension Plans
Solution--For Institutions
 The company runs the largest
bond mutual fund in the world,
the PIMCO Total Return Fund, and
provides portfolio management
and asset allocation solutions for
millions of investors worldwide.
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Separate Accounts
Mutual Funds
Private Funds
ETFs
Collective Investment
Trusts
 Variable Insurance Trusts





Solution--For Individuals
 Provides Resources to help
individuals pursue their long-term
investing goals – including
account access, tax documents,
PIMCO contact information,
forms/applications, and details
about our investment solutions.
 In addition, PIMCO separate
accounts for high-net-worth
investors.
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 Mutual Funds
 ETFs
 Separate Accounts
Solution--For Advisors
 PIMCO supports registered
investment advisors, family offices
and investment professionals at
bank trusts and brokerages and
banks
 Provides the platform, tools and
expertise needed to meet a full
spectrum of investment needs and
goals.
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



Mutual Funds
ETFs
Separate Accounts
Separately Managed
Accounts (SMAs)
Risks
Regulation
Bill Gross’ Leaving
SWOT Analysis
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Regulations
Performance
monitored
by board of
directors
Must
registered
with SEC
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Subjected to
Investment
Company
Act of 1940
Mutual
Fund
Managed by
Prospectus
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Qualified
Investors
Only
DoddFrank
Private
Fund
Securities
Act of
1933
Investmen
t Company
Act of
1940
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36
Must registered
as open end
investment
companies
ETFs
Oversight by
board of
directors
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Limitations on
use of leverage
and
transaction
with affiliates
37
Risks
Regulation
Bill Gross’ Leaving
SWOT Analysis
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Bill Gross
• Biography
Timeline
• Education
• Career
Bill Gross’ leave
• The Influence of PIMCO
PIMCO
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Bill Gross
 ‘The nation’s most
prominent bond investor
 April 13, 1944
 Co-funded Pacific
Investment Management
Company (PIMCO)
PIMCO
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Graduation Background
Career
Bachelor:
CFA Charterholder
MBA:
1971-1976
Psychology, Duke University in 1966
Investment analyst for Pacific Mutual Life
UCLA in 1971
1977-2014
He co-founded Pacific Investment Management
Company (PIMCO) and managed PIMCO's Total Return
fund (the world's largest bond fund).
September 26, 2014.
Left PIMCO to join Janus Capital Group
PIMCO
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Bill Gross’s leave
September 26, 2014
Bill Gross left PIMCO and joint Janus Capital Company.
Nearly $69 billion was withdrawn from the fund
through August. PIMCO Total Return Fund trailed
65 % of peers in 2013
His departure triggered a combined $60.5 billion
in withdrawals from PIMCO Total Return Fund
PIMCO was under investigation by the U.S.
SEC over the way it prices some of its investments
The stock price of Allianz decreased 5.4%, while
the stock price of Janus increased 40%
PIMCO
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Risks
Regulation
Bill Gross’ Leaving
SWOT Analysis
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Strengths
-skilled workforce
-existing distribution and sales networks
-barriers of market entry
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FINANCIAL MARKETS
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Weaknesses
-competitive market
-investments in research and development
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Opportunities
-new acquisitions
-growing demand
-new markets
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FINANCIAL MARKETS
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Threats
-growing competition and lower profitability
-unexpected problems
-increasing costs
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FINANCIAL MARKETS
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