Tina Adatia: Andrew, as a member of our investment committee and our global CIO of Fixed Income, the last few weeks we've seen extreme volatility and we've seen a bear market that's been faster than what we'd seen since I think the 1920s. How does an investment firm cope in that type of environment? And have we changed anything in our investment approach given this environment?
Andrew Balls: What we're doing currently, and we've done this before during periods of volatility, is to have a more coordinated, centralized approach. We did this around the Lehman Brothers crisis, the Eurozone crisis, the taper tantrum just to name 3 periods in the last decade. And we want to be coordinated, patient, disciplined.
We want to use the investment committee, the specialist teams, careful consideration for everything we're doing during this period of heightened uncertainty, heightened volatility. You don't want to overtrade when the cost of trading has gone up. We've seen the sort of period where financial markets really froze up a couple of weeks ago. Some improvement since then, but it's a time when you want to be patient, not rush into doing anything, have multiple checks across the investment committee, the risk management team, the CIO team, the other portfolio manager leaders across the firm. You don't want to overreact. You don't want to underreact either to the new information.
At PIMCO, we have a long-term investment approach, long-term orientation which I think is always helpful but can be helpful during these times of navigating difficult environments. We will look to position for the normalization of market conditions over time. There will be good opportunities now and good opportunities in the weeks and months to come. But the most important thing in this kind of environment is going to be trying to protect the capital of our clients and making that the number one priority.
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There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors and each investor should evaluate their ability to invest long-term, especially during periods of downturn in the market. Investors should consult their investment professional prior to making an investment decision. Statements concerning financial market trends are based on current market conditions, which will fluctuate.
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