Australian Bond Fund


Updated 18 June 2018


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.


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 consistent income and low 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.


Bloomberg AusBond Composite 0+ Yr Index


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.







mFund Code






Robert Mead

Co-head of Asia-Pacific Portfolio Management

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Adam Bowe

Portfolio Manager, Fixed Income, Australia

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Aaditya Thakur

Portfolio Manager, Australia and Global

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Yields & Distributions

Historical Prices & Distributions

Latest Dividend Distribution ($ Share)1 as of 29/03/2018 $0.00510
Dividend Distribution (FYTD) as of 29/03/2018 $0.01069
Yields & Distributions Footnotes & Disclosures


1Distribution is paid quarterly in March, June, September and December.

Fees & Expenses

Total Annual Management Costs %2 0.5%
Fees & Expenses Footnotes & Disclosures


2Management costs 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).


  • Average Annual Returns
  • Cumulative Returns

All data as of

  • Month End
  • Quarter End

All data as of

  • Month End
  • Quarter End
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

  • Morningstar Ratings
  • Lipper Rankings
Performance Footnotes & 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 5.09
Europe - Non-EMU 0.14
North America 0.08
Emerging Markets 0.01
Other 0.00
United Kingdom -0.11
Europe - EMU -0.26
Japan -0.49

Credit Quality Exposure -
Market Value %

AAA 61.65
AA 14.48
A 7.24
BBB 15.84
Sub Investment Grade 0.79

Sector Allocation - Duration in Years

Government 1.61
Semi-Gov 1.06
Agency 0.34
IG Corporates 0.88
High Yield 0.00
Securitised 0.34
Emerging Markets 0.03
Cash Equiv & Other 0.19

Duration %

0-1 yrs 4.53
1-3 yrs 10.77
3-5 yrs 33.84
5-7 yrs 10.25
7-8 yrs 46.40
8-10 yrs -10.87
10+ yrs 5.08
Effective Duration (yrs) 4.45

Risk Characteristics
(Trailing 3 Years)

Standard Deviation3 2.51
Sharpe Ratio4 0.87
Information Ratio5 -0.33
Tracking Error6 0.47

Currency Exposure %

Australia/NZ 99.59
Emerging Markets 2.34
Other -0.98
North America -0.90
Europe - EMU -0.04
Europe - Non-EMU 0.01
Japan -0.01
United Kingdom -0.01
Portfolio Composition Footnotes & 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 base