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Fund Fact Sheet Quarterly Investment Report Product Disclosure Statement (AU)

Australian Bond Fund

ETL0115AU

Updated 22 April 2024

Fund Fact Sheet Quarterly Investment Report Product Disclosure Statement (AU)

Objective

To achieve maximum total return by investing in fixed interest securites predominantly denominated in Australian or New Zealand currencies, and to seek to preserve capital through prudent investment management.

Investments Held

Primarily invests in government, semi-government, corporate, mortgage and other fixed interest securities denominated in Australian and New Zealand dollars. The Fund may hold securities in other denominations hedged back to Australian dollars.

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Overview

Fund Overview

True core bond holding

The Australian Bond Fund seeks to provide all the benefits investors have come to expect from a core bond holding, including total returns with low expected volatility, which can help stabilise portfolio returns. The Fund is a well-diversified portfolio of primarily Australian and New Zealand fixed interest securities that seeks to lower risks while providing opportunities for enhanced returns.

Why Invest In This Fund

Australian high-quality yield opportunities

Designed specifically for Australian investors, the Fund invests predominantly in a wide range of high-quality bonds from issuers in Australia and New Zealand, ranging from Commonwealth and state government bonds to corporate bonds and mortgage-backed securities.

Flexibility at work

The Fund has the flexibility to anticipate and respond to changes in the Australian credit market and interest rate environments. It aims to avoid investments that put capital permanently at risk and has a strong track record of providing returns above its benchmark

A time-tested investment process with proven Australian expertise

The Fund's portfolio positioning and security selection are guided by PIMCO's time-tested investment process: our rigorously developed macro outlook, our bottom-up credit analysis and our robust risk management. The Fund's portfolio management team includes specialists dedicated to each sector in the Australian market.

Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates.

Our Expertise

Local management, global expertise

PIMCO’s Australian Fixed Interest mandates are managed locally from the Sydney office by a specialised and highly experienced domestic portfolio management team who are fully integrated into PIMCO’s investment process and has access to PIMCO’s vast global resources.

PRIMARY BENCHMARK

Bloomberg AusBond Composite 0+ Yr Index

PRIMARY BENCHMARK DESCRIPTION

The Bloomberg AusBond Composite 0+ Yr Index is an unmanaged market index representative of the total return performance of AUD-denominated bonds. It is not possible to invest in an unmanaged index.

DISTRIBUTION FREQUENCY

Quarterly

SHARE CLASS INCEPTION

12/07/1999

APIR Code

ETL0115AU

Currency

AUD

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Managers

Robert Mead

Head of Australia, Co-head of Asia-Pacific Portfolio Management

View Profile for Robert Mead

Adam Bowe

Portfolio Manager, Australia

View Profile for Adam Bowe

Aaditya Thakur

Portfolio Manager, Australia and Global

View Profile for Aaditya Thakur

Yields & Distributions

Historical Prices & Distributions

Latest Dividend Distribution ($ Share)1 as of 28/03/2024 $3.60158
Dividend Distribution (FYTD) as of 28/03/2024 $10.66132

disclosures

1The Fund generally distributes income quarterly at the end of March, June, September and December.

Fees & Expenses

Total Annual Management Fee %2 0.45%

disclosures

2Management fees quoted are inclusive of Goods and Services Tax (GST) and net of any Reduced Input Tax Credits (RITC) at the prescribed rate, which is currently either 55% or 75% (depending on the nature of the fee or expense).
In addition to the Management Fee there may be other fees and costs associated with an investment in this fund. For a detailed explanation on fees and costs please refer to the Product Disclosure Statement

Performance

All data as of

All data as of

Click here to view the Price and Performance for all Australia

Past performance is not a reliable indicator of future results. Fund performance is quoted net of fees and expenses and assumes the reinvestment of all distributions but does not take into account personal income tax.

Fiscal Year Returns %

All data as of

Growth of $10,000 (hypothetical)

Morningstar and Lipper

disclosures

Performance figures presented reflect the total return performance after fees and reflect changes in share price and reinvestment of dividend and capital gain distributions on the payable date. All periods longer than one year are annualized.
Monthly YTD return is from the most recent calendar year end.
Growth of $10,000 is calculated at NAV and assumes that all distributions were reinvested. It does not take into account fees or the effect of taxes. Results are not indicative of future performance.

Portfolio Composition

All data as of unless otherwise stated

Region - Duration in Years

Australia/NZ 5.28
United Kingdom 0.06
Emerging Markets 0.00
Europe - Non-EMU 0.00
Other 0.00
North America -0.08
Europe - EMU -0.28
Japan -0.40

Credit Quality Exposure -
Market Value %

AAA 60.72
AA 22.55
A 6.76
BBB 7.94
Sub Investment Grade 2.02

Sector Allocation - Duration in Years

Government 1.40
Semi-Gov 1.76
Agency 0.41
IG Corporates 0.60
High Yield 0.01
Securitized 0.39
Emerging Markets 0.00
Cash Equiv & Other 0.03

Duration %

0-1 yrs 1.04
1-3 yrs 16.71
3-5 yrs 29.45
5-7 yrs 15.10
7-8 yrs 19.40
8-10 yrs 16.45
10+ yrs 1.84
Effective Duration (yrs) 4.59

Risk Characteristics
(Trailing 3 Years)

Standard Deviation3 6.42
Sharpe Ratio4 -0.59
Information Ratio5 0.11
Tracking Error6 0.66

Currency Exposure %

Australia/NZ 100.29
Europe - EMU -0.52
Other -0.50
Emerging Markets 0.49
Japan 0.48
North America -0.32
United Kingdom 0.07
Europe - Non-EMU 0.00

disclosures

3Standard deviation is a statistical measure of dispersion about an average which, for a mutual fund, depicts how widely the returns varied over a certain period of time. The greater the dispersion, the greater the risk.
4The Sharpe Ratio measures the risk-adjusted performance. The risk-free rate is subtracted from the rate of return for a portfolio and the result is divided by the standard deviation of the portfolio returns.
5Information ratio is a ratio of portfolio returns above the returns of a benchmark to the volatility of those returns.
6Tracking error, a measure of risk, is defined as the standard deviation of the portfolio's excess return vs. the benchmark expressed in percent.
Portfolio information in the charts is based on the fund's net assets. These percentages may differ from those used for the fund's compliance calculations, including the fund's prospectus, regulatory, and other investment limitations and policies, which may be based on total assets of the fund or other measurements, may include or exclude various categories of investments from those covered in the portfolio allocation categories shown in this report, and may be based on different classifications and measurements of the fund’s investments and other criteria.
References to specific sectors, securities or issuers are for illustrative purposes only. All holdings are subject to change daily. All share classes have the same portfolio but different expenses.

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Disclosures

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. Before making an investment decision investors should consider whether the information contained herein is appropriate in light of their particular investment needs, objectives and financial circumstances and any relevant offer document. Investors should obtain relevant and specific professional advice before making any investment decision. The information contained herein does not take into account the investment objectives, financial situation or needs of any particular investor.
A word about risk:

Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and the current low interest rate environment increases this risk. Current reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed.Mortgage- and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and while generally supported by a government, government-agency or private guarantor, there is no assurance that the guarantor will meet its obligations.Sovereign securities are generally backed by the issuing government. Obligations of U.S. government agencies and authorities are supported by varying degrees, but are generally not backed by the full faith of the U.S. government. Portfolios that invest in such securities are not guaranteed and will fluctuate in value. Derivatives may involve certain costs and risks, such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. Diversification does not ensure against loss. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.