NEWPORT BEACH, CA--(Marketwire - Dec 4, 2012) - PIMCO, a leading global investment management firm, has been granted a patent by the U.S. Patent and Trademark Office for the methodology behind the firm's Global Advantage Bond Index (GLADI).
GLADI is an innovative fixed income benchmark designed to better capture investment opportunities in a New Normal investment landscape. It is also an example of PIMCO's focus on delivering responsive global solutions to help investors meet their return and risk management goals.
U.S. Patent Number 8,306,892 was awarded to PIMCO founder and Co-Chief Investment Officer Bill Gross and Ramin Toloui, the firm's Global Co-Head of Emerging Markets Portfolio Management, as inventors of GLADI's unique index construction methodology. The methodology is designed to capture the ongoing transformations in global bond markets -- in particular the shifting economic weight from developed countries to emerging markets -- by assigning more appropriate portfolio weights rather than using a backward-looking, market-capitalization weighting common to most global bond indexes.
The GDP weighting approach is intended to help investors to gain a first-mover advantage by positioning portfolios in markets that are underrepresented in traditional indexes. GDP weighting also helps investors avoid the biases embedded in market capitalization-weighted indexes that concentrate large weights in the most highly indebted countries. In addition, GLADI makes fuller use of the global fixed income opportunity set, incorporating both nominal and inflation-linked securities.
"PIMCO's goal in designing a new bond index was to provide investors with a superior compass to guide their portfolios in a New Normal environment where economic and financial power is shifting from developed to emerging markets," said Mr. Toloui. "Ultimately, we think the Global Advantage Bond Index enhances investors' ability to target improved risk-adjusted returns, and we are gratified that our work has been recognized with a U.S. patent."
GLOBAL ADVANTAGE and GLADI are trademarks of Pacific Investment Management Company LLC.
PIMCO is a leading global investment management firm, with offices in 11 countries throughout North America, Europe and Asia. Founded in 1971, PIMCO offers a wide range of innovative solutions to help millions of investors worldwide meet their needs. Our goal is to provide attractive returns while maintaining a strong culture of risk management and long-term discipline. PIMCO is owned by Allianz S.E., a leading global diversified financial services provider.
The PIMCO Global Advantage Bond Index (GLADI) is a diversified global index that covers a wide spectrum of global fixed income opportunities and sectors, from developed to emerging markets, nominal to real assets, and cash to derivative instruments. Unlike traditional indices, which are frequently comprised of bonds weighted according to their market capitalization, GLADI uses GDP-weighting which puts an emphasis on faster-growing areas of the world and thus makes the index forward-looking in nature. It is not possible to invest directly in an unmanaged index.
Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO's sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.