What is PIMCO's approach to risk management?

At PIMCO, risk management is a fundamental part of our investment strategy. We employ a comprehensive and disciplined approach to mitigate risks and optimize returns for our clients. Our risk management process begins with extensive research and analysis to identify and understand potential risks in the market. We then construct portfolios that align with our clients' objectives while considering risk tolerance and diversification. Our experienced team of risk managers continuously monitors market conditions and portfolios, employing sophisticated risk models and analytics to identify and quantify various risk factors. We actively manage risks by applying a combination of hedging strategies, rigorous stress-testing, and diversification across asset classes. Our goal is to provide consistent and attractive risk-adjusted returns while safeguarding our clients' investments from unforeseen events and market fluctuations.