Australian Short-Term Bond Fund

ETL0182AU

Updated 21 September 2018

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.

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

27/02/2009

APIR Code

ETL0182AU

mFund Code

PMF05

Currency

AUD

RELATED

Managers

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 29/06/2018 $0.01459
Dividend Distribution (FYTD) as of 29/06/2018 $0.02343
Yields & Distributions Footnotes & Disclosures

disclosures

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

Fees & Expenses

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

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).

Performance

  • Average Annual Returns
  • Cumulative Returns

All data as of

  • Month End
  • Quarter End

All data as of