PIMCO International Bond Fund (Unhedged) Institutional Class PFUIX

Pimco International Bond is backed by three skilled managers who draw on the firm's extensive resources, and it benefits from a flexible, diversified approach, earning High ratings on both its People and Process pillars. Lead manager Andrew Balls has two decades of experience running global and European mandates, and the vast investment team, including veteran comanagers Sachin Gupta and Lorenzo Pagani, is well-equipped to cover rates, currencies, corporates, and structured credit. Pimco's top-down views—driven by the firm's investment committee on which Balls sits—guide the strategy's broad positioning. Within the scope of those themes, Balls and his team consider relative valuations to determine sector, country, and yield-curve positioning. This version of the strategy is benchmarked to the Bloomberg Global Aggregate ex-US Bond Index, but the approach allows for considerable flexibility, including moderate exposure to US rates, a maximum allocation to below-investment-grade debt of 10%, and no formal limit on emerging-markets exposure. The team has used this latitude well and in moderation along with its work in developed-market sovereign bonds, which typically anchor the portfolio. Balls has also tended to stay on the shorter side of the benchmark’s duration, which held back returns in the fund's earlier history, but recently helped during interest rate shocks (such as in the first quarter of 2021 and again in 2022). While the portfolio's exposure to credit risk is currently on the lighter side, given the team’s somewhat cautious top-down views, over long periods, Pimco has demonstrated considerable skill in corporate credit, securitized bonds, and currencies. Over the trailing three, five, and 10 years through August 2025, the fund's institutional USD shares largely outpaced both the Morningstar Category average and the benchmark index, while keeping volatility in check. All told, this team is well-equipped to take advantage of the strategy’s flexibility over the long haul.