Our Journey

PIMCO has long believed that uncovering value for clients requires a focus on long-term factors – something we’ve managed for decades through our secular forums. This long-term orientation led us to formalize our belief in ESG in 2011, the same year we signed the Principles for Responsible Investment. Launching a dedicated ESG investment platform is our latest step forward in this journey.

Our Journey

Learn about the evolution of ESG investing globally and at PIMCO

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Read PIMCO’s ESG policy statement

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Explore PIMCO’s partnerships with ESG-related organizations

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Our Approach

PIMCO ESG is designed for the growing number of investors who seek more than financial returns. Combining ESG-focused portfolio construction with robust issuer engagement and transparent reporting, our goal is to invest for both attractive returns and positive social and environmental change.

Targeting Performance and Positive Change

Exclude

Restrict investment in issuers fundamentally misaligned with sustainability practices

Examples of exclusions

  • Controversial weapons
  • Tobacco
  • Pornography
  • Coal

Evaluate

Emphasize best-in-class ESG issuers and prime ESG engagement candidates in portfolio construction

Attributes of best-in-class issuers

  • Good environmental practices
  • Strong corporate governance
  • Industry-leading social policies

Engage

Engage collaboratively with issuers to change ESG-related business practices

Sample engagement questions

  • Are you developing a framework for climate risk reporting?
  • What is your policy on parental leave?
  • Do you have a culture and conduct committee?

Our Approach

How PIMCO ESG targets positive impact and investment results

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Analyzing ESG factors in the European utilities sector

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Your Impact

PIMCO ESG’s active investment approach seeks to identify issuers that we can best engage with to influence change. As we engage, we measure and report on progress, allowing you to see the impact your investment has made. Across the vast fixed income universe, small change can have an enormous positive effect.

Making an impact as a bond investor

1500+ of the largest companies*
With a combined market capitalization of over $33 trillion
And total assets close to $110 trillion
*Refers to the global bond universe as represented by the Barclays Global Aggregate Bond Index

Your Impact

How the UN Sustainable Development Goals can serve as a framework for impact investing.

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Disclosures

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all dividends and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

A word about risk: All investments contain risk and may lose value.  There is not guarantee that socially responsible investing (SRI) products or strategies will produce returns similar to traditional investments.  Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk and liquidity risk. The value of most bonds and bonds strategies are impacted by changes in interest rates.  Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and the current low interest rate environment increases this risk.  Current reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility.  Bond investments may be worth more or less than the original cost when redeemed. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous.  Investing in derivate could lose more than the amount invested.

Socially responsible investing is qualitative and subjective by nature, and there is no guarantee that the criteria utilized, or judgment exercised, by PIMCO will reflect the beliefs or values of any one particular investor.  Information regarding responsible practices is obtained through voluntary or third-party reporting, which may not be accurate or complete, and PIMCO is dependent on such information to evaluate a company’s commitment to, or implementation of, responsible practices.  Socially responsible norms differ by region.  There is no assurance that the socially responsible investing strategy and techniques employed will be successful.  Past performance is not a guarantee or reliable indicator of future results.

This material contains the opinions of the manager and such opinions are subject to change without notice.  This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.