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

Diversified Fixed Interest Fund

ETL0116AU

Updated 05 December 2023

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

Objective

To achieve maximum total return by investing in underlying funds that invest in Australian and overseas bonds, and to seek to preserve capital through prudent investment management.

Investments Held

Predominantly invests in government, corporate, mortgage and other global fixed interest securities diversified regionally among Australia and globally via other funds.

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Overview

Fund Overview

Anchor your portfolio with domestic and global bonds

The Diversified Fixed Interest Fund can serve as an anchor fixed income allocation, offering the potential for income, capital gains, diversification and a hedge against the volatility in higher-risk asset classes, including equities.

Why Invest In This Fund

Tap into the best opportunities across Australia and the globe

Designed specifically for Australian investors, the Fund may tap into the multi-trillion-dollar global bond market, but retains a strategic allocation toward domestic high-quality opportunities.

True core bond holding

The Fund seeks to provide all the benefits investors have come to expect from a core bond holding, including consistent income, low volatility and diversification within a broader asset allocation.

Flexibility at work — one-stop active solution

The Diversified Fixed Interest Fund aims to help investors allocate across Australian and global bond exposures on an active basis, depending on where the best opportunities exist. The Fund has the flexibility to anticipate and respond to changes in credit markets and interest rate environments, which has delivered a strong track record of providing returns above its benchmark.

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

The best of global and local expertise

With dedicated sector and regional specialists in 11 offices around the world, combined with PIMCO’s dedicated Australian team, the Fund benefits from the best ideas from Australia and across the globe.

PRIMARY BENCHMARK

50% Bloomberg Global Aggregate Index hedged into AUD / 50% Bloomberg AusBond Composite 0+ Yr Index

PRIMARY BENCHMARK DESCRIPTION

The Fund's benchmark index is a blend of 50% Bloomberg Global Aggregate Index hedged into AUD and 50% Bloomberg AusBond Composite 0+ Yr Index, and is designed to provide a broadly diversified exposure to both global and Australian bond markets. The Bloomberg Global Aggregate Index hedged into AUD is an unmanaged market index representative of the total return performance of major world bond markets on a AUD hedged basis. 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

26/05/1999

APIR Code

ETL0116AU

Currency

AUD

RELATED

The Role of Core Bonds:
A portfolios insurance policy

How to Invest

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Managers

Robert Mead

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

View Profile for Robert Mead

Sachin Gupta

Portfolio Manager

View Profile for Sachin Gupta

Adam Bowe

Portfolio Manager, Australia

View Profile for Adam Bowe

Yields & Distributions

Historical Prices & Distributions

Latest Dividend Distribution ($ Share)1 as of 29/09/2023 $2.81606
Dividend Distribution (FYTD) as of 29/09/2023 $2.81606

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 2.90
North America 1.48
Europe - EMU 0.32
United Kingdom 0.30
Europe - Non-EMU 0.16
Other 0.13
Emerging Markets -0.02
Japan -0.08

Credit Quality Exposure -
Market Value %

AAA 43.57
AA 29.75
A 8.60
BBB 14.44
Sub Investment Grade 3.64

Currency Exposure %

Australia/NZ 100.45
Emerging Markets 1.62
Other -1.54
Japan 1.39
North America -1.32
Europe - EMU -0.82
Europe - Non-EMU 0.24
United Kingdom -0.01

Duration %

0-1 yrs 1.94
1-3 yrs 0.79
3-5 yrs 28.38
5-7 yrs 31.23
7-8 yrs 13.70
8-10 yrs 14.34
10+ yrs 9.62
Effective Duration (yrs) 5.19

Sector Allocation - Duration in Years

Government 1.58
Semi-Gov 0.89
Agency 0.24
IG Corporates 0.48
High Yield 0.01
Securitized 1.62
Emerging Markets 0.26
Cash Equiv & Other 0.10

Risk Characteristics
(Trailing 3 Years)

Standard Deviation3 5.26
Sharpe Ratio4 -1.23
Information Ratio5 0.22
Tracking Error6 0.82

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. Investing in foreign-denominated and/or -domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. High yield, lower-rated securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. 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.