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
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.
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.
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.
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.
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