Has anyone been able to find portfolio information for Peawx yet? All I can find on the Pimco site is the prospectus and general arm-waving commentary issued at its opening, and the phone reps don't know anything.
I've been holding, roughly speaking, a d-i-y etf/oef version of this fund's neutral strategy (50% EM stocks, 25% EM local bonds, 25% EM $ bonds) for the better part of a year. Peawx trailed the d-i-y combo at first, but now appears to be losing less, so I'm interested in seeing how it's positioned.
I believe, Scott, you said at one point that you own or owned it?
Comments
anyways to get in 'back door' w/ only about 10s-20sK...1 mill is too much for me. any other class shares available for smaller investors?
thanks
John - I've got a Vanguard brokerage account, and you can get Pimco I-class funds there with $25k minimum and a TF ($20-$35). I do a max of one Pimco fund at a time, and right now it's zero, so looking at Global Multi-Asset, EM Multi-Asset, Foreign Bond Unhedged, and might think about All Asset once things calm down a bit - All Asset took a big hit in '08 -- it's not that uncorrelated with the stock market.
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Aug 2011
http://www.pimco.com/EN/Insights/Pages/The-Case-for-Tail-Risk-Hedging-in-Emerging-Market-Equities.aspx
"- There is a tradeoff between the cost of establishing a hedge and the downside protection that it imparts to a portfolio.
- The best approach to tail hedging is a flexible one; using dynamic rebalancing, diversification and affordable option-like securities.
- A diversified macro approach to hedging tail risk actually may be more efficient for EM than it is for developed asset classes.
As developing nations increasingly drive global economic growth, investors may benefit from increased exposure to emerging market equities. The challenge many investors face is how to participate in this potential long-term return opportunity while enduring markets that tend to experience volatile swings. While our secular outlook for emerging markets is solid, we expect long-term success will be earned by those who can manage cyclical risks. In the first of a series of three articles, portfolio managers Vineer Bhansali and Maria (Masha) Gordon make the case for proactively managing “tail risk” in emerging market equities without having to reduce exposure to this important asset class. In subsequent articles in this series, PIMCO investment professionals will look at the importance in emerging market equity investing of incorporating macroeconomic insights and managing portfolios with high “active share,” or less of a benchmark orientation."
Consider that the Loomis Sayles Bond fund lost 22% that year. Fidelity Strategic Income lost over 11%. And Loomis Sayles Global Bond fund lost 8.8%.
A good moderate balanced fund such as OAKBX lost over 16%.
So in light of that - Pimco All Asset All Authority did a good job holding its own back in '08 with only a 7% loss.
The best approach to tail hedging is a flexible one; using dynamic rebalancing, diversification and affordable option-like securities.
"...affordable option-like securities..."
What types of securities would these be that are option-like?
bee
In general, I prefer using bonds (the stock-uncorrelated kind) to blunt stock market declines rather than significant stock shorts.
I realize mine may not be a popular take on Arnott and his funds ... but hey, to each his/her own.
AJ