What is Total Return?
Many bond portfolios focus solely on yield, but that is only part of the return of a bond portfolio. In addition to yield, bonds may also provide capital gains. The return calculation that takes into account both interest income and capital gains is known as total return. PIMCO’s Total Return portfolios are best described as a core bond strategy that seeks to maximize price appreciation and current income with index-like volatility. We utilize all major sectors of the bond market to implement a diversified set of strategies including sector rotation, yield curve positioning, and duration management. Duration is managed within a moderate range (between three and six years) around the broadest bond market indices.