Diversified Fixed Interest Fund

ETL0016AU

Updated 22 June 2018

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.

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 Barclays 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 Barclays 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 Barclays 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

28/04/2004

APIR Code

ETL0016AU

mFund Code

PMF02

Currency

AUD

RELATED

Managers

Robert Mead

Co-head of Asia-Pacific Portfolio Management

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Sachin Gupta

Head of Global Portfolio Management Desk

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Adam Bowe

Portfolio Manager, Fixed Income, Australia

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Yields & Distributions

Historical Prices & Distributions

Latest Dividend Distribution ($ Share)1 as of 29/03/2018 $0.00302
Dividend Distribution (FYTD) as of 29/03/2018 $0.01054
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

  • 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

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 2.63
North America 1.48
Europe - EMU 0.68
Europe - Non-EMU 0.26
Emerging Markets 0.07
United Kingdom -0.05
Other -0.08
Japan -0.12

Credit Quality Exposure -
Market Value %

AAA 62.04
AA 10.56
A 10.00
BBB 13.60
Sub Investment Grade 3.80

Currency Exposure %

Australia/NZ 99.78
Emerging Markets 4.01
Other -1.73
Europe - EMU -1.51
North America -1.00
United Kingdom 0.37
Japan 0.07
Europe - Non-EMU 0.01

Duration %

0-1 yrs 8.09
1-3 yrs 0.84
3-5 yrs 46.22
5-7 yrs 16.96
7-8 yrs 25.95
8-10 yrs -12.10
10+ yrs 14.05
Effective Duration (yrs) 4.88

Sector Allocation - Duration in Years

Government 1.75
Semi-Gov 0.59
Agency 0.24
IG Corporates 0.73
High Yield 0.07