PIMCO GIS – PIMCO Total Return Bond Fund Review
PIMCO GIS – PIMCO Total Return Bond Fund is a diverse portfolio of intermediate-term, investment grade securities, actively managed to maximise total return while minimising risk relative to the benchmark. The Fund invests primarily in US government, mortgage and corporate bonds, but may have tactical allocations to municipal, high yield and non-US markets.
PIMCO GIS – PIMCO Total Return Bond Fund invests at least two-thirds of its assets in a diversified portfolio of Fixed Income Instruments of varying maturities. The average portfolio duration of the Fund will normally vary within two years (plus or minus) of the Barclays Capital US Aggregate Index. 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 Advisor 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 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 investment strategy seeks to deploy the Investment Advisor’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 Advisor’s ability to select undervalued securities in the fixed income market.
PIMCO GIS – PIMCO Total Return Bond Fund may invest in USD-denominated securities of non-U.S. issuers. The Fund may use derivative instruments such as futures, options and swap agreements and may also enter into currency forward contracts (both for hedging and/or for investment purposes).
Who is PIMCO GIS – PIMCO Total Return Bond Fund suitable for?
PIMCO GIS – PIMCO Total Return 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 primarily U.S. investment grade 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 Advisor.
What are the key risks of PIMCO GIS – PIMCO Total Return Bond Fund?
The value of PIMCO GIS – PIMCO Total Return 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 Total Return 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
- The Fund is exposed to liquidity risk
- 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
Investment Fees and Charges
For a limited time (Until 31 Dec 2020), speak to a MAS licensed Independent Financial Advisor 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 Total Return Bond Fund
- PIMCO GIS – PIMCO Total Return Bond Fund Fact Sheet (Open in New Window)
- PIMCO GIS – PIMCO Total Return Bond Fund Product Highlight Sheet (Open in New Window)
- Speak to a licensed Independent Financial Advisor
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