Strategy to address yield rise concerns

While yield levels remain low in Japanese bond markets, many investors are concerned that they may rise in the future given the nation’s massive and growing public debt. There is considerable need for stable added value while controlling the risk of rising yields across the benchmark. To address these concerns, PIMCO introduced in 2003 the Japan Low Duration Strategy. Based on PIMCO’s Japan Core Plus strategy, which seeks excess returns from both within the Japanese benchmark (“core”) and outside the benchmark, including foreign bonds (“plus”), this particular strategy has a focus on short-term durations.


Target returns are calculated based on the assumption that all investment tools that are normally used with the strategy are available. Target returns should not be construed as an estimate or promise of results that a client portfolio may achieve.

The value of assets under management will be affected by, and fluctuate based upon, movements in prices of securities in the portfolio, financial market conditions, interest rates, and credit risk arising from changes in the financial condition of issuers of securities in the portfolio, among others. Where investments are made in foreign currency denominated assets, the value of the assets will also be affected by movements in foreign exchange rates. All profits and losses resulting from investments are for the account of the investor. Thus, there is no guarantee that the principal amount of the investment will be preserved, or that a certain return will be realized; rather, the investment could suffer a loss.

The fee charged for our activities related to the financial instruments business will vary depending on the investment trust acquired or the investment advisory agreement entered into, and thus these materials do not set forth specific fee amounts or their calculation methodologies.