"Risk appetite declined in December as hawkish central bank rhetoric persisted and concerns surrounding economic growth burgeoned." — Alfred Murata
Contributors and detractors to the portfolio performance during the month of December were as follows:
Contributors
- Exposure to securitized credit, including agency and non-agency mortgage backed securities
- Short exposure to Japanese duration and the Japanese Yen.
Detractors
- Exposure to U.S. and European duration
- Exposure to emerging market local debt
- Exposure to high yield credit
Alfred Murata
Portfolio manager, PIMCO
Note: The differences in performance between the Class A units presented in these comments and the segregated fund are primarily due to differences in management fees. Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results.
