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Pimco Emerging Multi-Asset (Peawx etc.)

edited August 2011 in Fund Discussions
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?


  • Own it - small position and do not plan on adding any more. My guess is that it's a fund-of- Pimco funds with various additional investments, similar to Pimco Global Multi-Asset, only with an EM focus. I'm curious if Pimco EM Infrastructure Bond is also included, as well. There is also a note of tail risk hedging, which I'm guessing is similar to the options used in the Global Multi-Asset fund.
  • hi scott/andy

    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?

  • edited August 2011
    Scott - thanks, I was thinking it'd be built more or less like Pgaix; no detailed info yet, but that seems like a good bet since the Pimco-ites don't stray far off the reservation. Good point about the Pgaix-like tail risk hedge, which may be why it's moved ahead of the d-i-y etf combo as EM stocks tank.

    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.

  • edited August 2011
    Reply to @johnN: Pimco "D" shares (as well as some admin shares) are no min/NTF at Ameritrade. Allianz "D" shares are no-min, as well.
  • edited August 2011
    PIMCO: The Case for Tail Risk Hedging in Emerging Market Equities

    Aug 2011

    "- 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."

  • edited August 2011
    Reply to Andy --- But the Pimco All Asset All Authority has a bit more tools in its arsenal and only lost about 7% in 2008.

    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.

  • AA/AU can short up to (I believe) 20% of assets (using the Pimco short fund/s.)
  • Reply to @Kenster1_GlobalValue:

    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?

  • edited August 2011
    I'm pretty sure Pimco Global Multi-Asset uses put options, in a manner similar to El-Erian did while at the Harvard Endowment. I'd be surprised if Pimco EM doesn't do the same, but maybe it uses some other bizarre derivatives.
  • edited August 2011
  • Kenster - thanks, yep, know those figures well, but I slightly prefer the straight-ahead, non-short, non-leveraged approach of Paaix, realizing it works best as a semi-safe holding in a generally appreciating environment ... appears to me be a little more consistently positioned, & a little less reliant on Arnott's gut. I basically don't trust his macroeconomics; he seems to be part of the inflationista herd that's getting the big picture pretty much wrong. (In his semi-defense, Gross is right there with him.)

    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.

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