Heirloom's Bold Bond Bet: How 40,231 New BOND Shares Signal a Shift in Portfolio Strategy

Institutional money is moving. Heirloom Wealth Management just made a significant play in fixed income, and the numbers tell an interesting story about where sophisticated investors see value right now.

The Core Holdings Picture

After Q3 filings, Heirloom’s portfolio reveals a carefully balanced approach across its 43 reportable positions. The fund’s top five holdings showcase a mix of tech exposure and defensive positioning:

Major positions by value:

• BOND (PIMCO Active Bond ETF): $45.04 million — representing 10.88% of assets under management
• DFIP: $45.00 million — virtually tied with BOND at 10.87%
• GOOGL (Alphabet): $31.91 million — 7.7% allocation
• NVDA (Nvidia): $29.51 million — 7.1% slice
• MSFT (Microsoft): $28.03 million — 6.8% stake

Total 13F reportable AUM sits at approximately $413.9 million, with BOND now representing the single largest position.

The Recent Move: What Changed

During the third quarter, Heirloom executed a deliberate expansion in its bond ETF exposure. The firm added 40,231 shares to its PIMCO Active Bond ETF position — a move that increased total position value by roughly $4.27 million. This addition represents approximately a 9% shift relative to the fund’s reportable assets under management.

The post-trade position now stands at 482,494 shares, valued at $45.04 million at the time of the November 10, 2025 filing.

Understanding the Strategic Pivot

Why would a fund manager deliberately increase allocation to bonds while maintaining significant tech holdings? The answer lies in understanding current market dynamics and risk management philosophy.

BOND itself trades at $93.49 per share (as of November 7, 2025) with a 12-month return of 7.34% — a performance that, while solid, trails the S&P 500’s stronger gains. However, the one-year underperformance by 5.32 percentage points reflects the market’s current obsession with artificial intelligence and tech innovation, not weakness in the bond strategy itself.

The ETF offers an annualized dividend yield of 5.07%, providing consistent income generation alongside capital appreciation potential. This income-focused approach appeals to managers seeking to balance growth exposure with stability.

What PIMCO Active Bond ETF Actually Does

This isn’t a passive index fund sitting still. The PIMCO strategy employs active management across a $5.91 billion fund, allowing portfolio managers discretionary power to:

• Construct diversified exposure to investment-grade debt securities
• Allocate up to 30% of assets to high-yield bonds when opportunities warrant
• Deploy derivatives for yield enhancement and risk mitigation
• Rebalance monthly to maintain target allocations
• Distribute dividends monthly to shareholders

The fund seeks reference to the Bloomberg U.S. Aggregate Index, which encompasses U.S. Treasuries, agency bonds, corporate credit, mortgage-backed securities, and asset-backed securities with maturities exceeding one year. Its market-weighted structure means larger issuers have proportional influence over returns.

The Market Timing Question

Heirloom’s near-doubling of its BOND position — a 9% increase relative to reportable assets — suggests management sees value in fixed income at current levels. This positioning arrives as investors reassess portfolio construction following the tech rally that dominated 2024-2025.

The contrast is notable: Heirloom simultaneously maintains substantial positions in mega-cap tech (Alphabet, Nvidia, Microsoft combined represent roughly 21.6% of the portfolio), while now anchoring core holdings in diversified fixed income. This signals neither tech abandonment nor bond-only conviction, but rather thoughtful diversification.

Key Metrics at a Glance

What This Means for Bond Market Outlook

The bond market faces conflicting narratives. Rising interest rates generally pressure bond valuations, yet fixed income still offers meaningful yields compared to historical averages. Heirloom’s increased allocation suggests confidence that current yield levels — around 5% annualized — provide adequate compensation for interest rate risk and credit exposure.

The fund holds 43 separate positions across its 13F portfolio, indicating disciplined diversification rather than concentrated bets. Adding 40,231 shares to an already-substantial BOND position represents confidence in the manager’s implementation without reckless concentration.

Bottom Line

When institutional wealth managers significantly expand positions in core holdings, it deserves attention. Heirloom’s addition of 40,231 PIMCO Active Bond ETF shares — pushing total allocation to $45.04 million across 482,494 shares — reflects a calculated decision to increase fixed income exposure. With a 5.07% dividend yield, actively managed flexibility, and a $5.91 billion fund infrastructure behind it, BOND continues demonstrating its appeal to sophisticated investors balancing growth ambitions with income needs. Whether this signals broader institutional pivot toward bonds remains a question the coming quarters will help answer.