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

Australian Short-Term Bond Fund

ETL0175AU

Updated 04 December 2023

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

Objective

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

Investments Held

The Fund primarily invests in government, semi-government, corporate, mortgage and other fixed interest securities denominated in Australian and New Zealand dollars. The Fund may also hold cash and derivatives.

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Overview

Fund Overview

Capital preservation and steady income

The Fund aims to earn yields higher than cash investments while also maintaining a capital preservation focus via a range of high-quality Australian fixed interest instruments.

Why Invest In This Fund

Capital Preservation

The PIMCO Australian Short-Term Bond Fund invests predominantly in securities with high credit ratings and short maturities – typically three years or less – with the primary goal of preserving capital, whilst also aiming to earn yields higher than cash investments.

Liquidity and transparency

Unlike term deposits, the Fund offers daily liquidity, an advantage for investors who want to be able to draw down their investments as needed.

Diversification

The Fund can help diversify an investment portfolio because it is designed to have low correlation to many assets, including equities which have been prone to volatility during "risk-off" periods. Importantly, its bias to short-term securities gives it lower interest rate sensitivity than most core fixed interest portfolios.

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

50% Bloomberg AusBond Bank Bills Index / 50% Bloomberg AusBond Composite 0+ Yr Index

PRIMARY BENCHMARK DESCRIPTION

The Fund's benchmark index is a blend of 50% Bloomberg AusBond Bank Bills Index and 50% Bloomberg AusBond Composite 0+ Yr Index. The Bloomberg AusBond Bank Bills Index is an unmanaged index representative of the total return performance of Australian money market securities. 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

05/02/2009

APIR Code

ETL0175AU

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 29/09/2023 $3.39537
Dividend Distribution (FYTD) as of 29/09/2023 $3.39537

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 2.59
Europe - Non-EMU 0.24
North America 0.01
Emerging Markets 0.00
Other 0.00
United Kingdom -0.01
Europe - EMU -0.16
Japan -0.37

Credit Quality Exposure -
Market Value %

AAA 48.68
AA 30.91
A 12.98
BBB 6.79
Sub Investment Grade 0.65

Currency Exposure %

Australia/NZ 100.10
Emerging Markets 1.26
Europe - EMU -1.15
Japan 1.06
United Kingdom -0.58
North America -0.28
Other -0.25
Europe - Non-EMU -0.15

Duration %

0-1 yrs -2.94
1-3 yrs -22.92
3-5 yrs 52.97
5-7 yrs 54.77
7-8 yrs 19.94
8-10 yrs 36.17
10+ yrs -37.98
Effective Duration (yrs) 2.30

Sector Allocation - Duration in Years

Government -0.36
Semi-Gov 1.38
Agency 0.53
IG Corporates 0.32
High Yield 0.02
Securitized 0.49
Emerging Markets 0.00
Cash Equiv & Other -0.08

Risk Characteristics
(Trailing 3 Years)

Standard Deviation3 3.68
Sharpe Ratio4 -1.09
Information Ratio5 -0.49
Tracking Error6 0.99

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.