PIMCO GIS – PIMCO Global Bond Fund Review
Fund objective
PIMCO GIS – PIMCO Global Bond Fund is a diverse, actively managed portfolio of global fixed-income securities. The average duration of the fund will normally vary within +/-3 years of the benchmark. The fund invests primarily in a diversified portfolio of investment grade bonds denominated in major world currencies.
Investment Strategy
PIMCO GIS – PIMCO Global Bond Fund invests at least two-thirds of its assets in a diversified portfolio of Fixed
Income Instruments denominated in major world currencies. The Fund invests primarily in investment grade Fixed Income Instruments, but may invest up to 10% of its assets in Fixed Income Instruments that are rated lower than Baa by Moody’s or lower than BBB by S&P or equivalently rated by Fitch, but rated at least B by Moody’s or S&P or equivalently rated by Fitch (or, if unrated, determined by the Investment Adviser to be of comparable quality) with
the exception of mortgage-backed securities for which there is no minimum credit rating requirement. Although there is no minimum credit rating requirement for
Although there is no minimum credit rating requirement for mortgage-backed securities, below investment grade mortgage-backed securities will be taken into account when calculating the aforementioned 10% limit in below
investment grade securities. The Fund may invest without limit in securities of issuers that are economically tied to countries with developing, or emerging market economies. As part of its investment strategy, the Fund seeks to invest in a diverse, actively managed portfolio of global fixed-income securities. The investment strategy
The investment strategy seeks to deploy the Investment Adviser’s total return investment process and philosophy. This process includes both top-down and bottom-up decision-making inputs to identify multiple sources of value. Top-down strategies focus on both short-term and longer-term global macroeconomic considerations and are utilised as part of regional and sector selection. Bottom-up strategies examine the profiles of individual instruments and are key to the Investment Adviser’s ability to select undervalued securities spanning all sectors of the global fixed-income market.
PIMCO GIS – PIMCO Global Bond Fund may hold both non-USD denominated Fixed Income Instruments and non-USD denominated currency positions. Non-USD currency exposure is limited to 20% of total assets. The Fund may use derivative instruments such as futures, options and swap agreements and may also enter into currency forward contracts (for hedging and/or for investment purposes).
Who is PIMCO GIS – PIMCO Global Bond Fund suitable for?
PIMCO GIS – PIMCO Global Bond Fund is only suitable for investors who:
- are looking to maximise total return through a combination of both income and capital growth
- are looking for a diversified exposure to global fixed income markets and are willing to accept the risks and volatility associated with investing in such markets
- have an investment horizon over the medium to long-term
Dividend or Income payout frequency: Monthly or Accumulating
For additional assessments on product suitability, please obtain professional advice from a qualified Financial Adviser.
What are the key risks of PIMCO GIS – PIMCO Global Bond Fund?
The value of PIMCO GIS – PIMCO Global Bond Fund and its dividends and coupons (if any) may rise or fall. You may lose some or all of your investment depending on the performance of the underlying securities. Factors that may affect the performance of these securities include, without limitation, market risks, fluctuations in interest rates and foreign exchange rates, political instability, exchange controls, changes in taxation and foreign investment policies.
Some of the key risks associated with PIMCO GIS – PIMCO Global Bond Fund are described below:
Market and Credit Risks
- The Fund is subject to credit risk
- The Fund is subject to currency risk
- The Fund is subject to interest rate risk
Liquidity Risks
- The Fund is exposed to liquidity risk
Product-Specific Risks
- The Fund’s use of derivative instruments is subject to the derivatives risks described in the Prospectus, such as liquidity risk, interest rate risk, market risk, credit risk and management risk
- The Fund is subject to global investment risk
- The Fund may be subject to high yield risk such as greater levels of interest rate, credit and liquidity risks
- The Fund is subject to emerging markets risk
- The Fund may be subject to Euro-related risks
Investment Fees and Charges
For a limited time (Until 31 Dec 2023), speak to a MAS licensed licensed financial adviser which has committed to offering our readers a flat 1% Subscription fee (Initial Sale Charge) for all Unit Trust Funds investment.
Learn more about the limited time offer on 1% Initial Sales Charge. Terms and conditions may apply.
Where can I get more details about PIMCO GIS – PIMCO Global Bond Fund
- PIMCO GIS – PIMCO Global Bond Fund (Open in New Window)
- PIMCO GIS – PIMCO Global Bond Fund Product Highlight Sheet (Open in New Window)
- Speak to a licensed licensed financial adviser
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