Emerging Markets Bond Fund

ETL0113AU

Updated 20 June 2018

Objective

To maximise total returns by investing in predominantly emerging markets debt securities and to seek to preserve capital through prudent investment management.

Investments Held

Predominantly invests both directly and indirectly (via other funds) in emerging market debt, i.e., bonds issued by governments, agencies and corporates in emerging markets. It may also invest in global corporate credit.

Overview

Fund Overview

Single entry to the full EM bond toolkit

The Fund is designed to offer investors a comprehensive solution to emerging markets (EM) fixed income exposure, with dynamic asset allocation decisions based on PIMCO’s evolving assessments of the global economy and markets.

Why Invest In This Fund

Dynamic exposure to EM bonds

The Fund allows investors to gain strategic exposure to the growing EM fixed income universe. Ongoing tactical asset allocation adjustments are based on PIMCO’s assessments of the global economy and markets, and relative values among EM fixed income classes. Exposures are gained primarily through PIMCO’s EM funds, although the Fund may also hold other funds and individual securities.

Attractive return potential

The Fund's ability to invest across diverse emerging markets fixed income exposures allows it to capture compelling yield, possible price appreciation and exchange rate opportunities through shifting market conditions, while also managing the risks associated with emerging markets.

Improving EM fundamentals

As advanced economies continue to expand their balance sheets, many emerging countries have low or declining debt-to-GDP ratios while still providing higher yields than their developed market counterparts. PIMCO’s deep EM expertise helps the team evaluate prospects for each country and invest selectively for the Fund.

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

Extensive EM experience

PIMCO’s emerging markets team has extensive experience analysing sovereign creditworthiness, assessing policy developments, and trading across a wide range of market environments. The Fund’s actively managed approach combines PIMCO’s top-down insights with intensive bottom-up country and corporate credit analysis.

PRIMARY BENCHMARK

50% JP Morgan Government Bond Index-Emerging Markets Global Diversified AUD Overlay / 25% JP Morgan Emerging Markets Bond Index Global hedged in AUD / 25% JP Morgan Corporate Emerging Markets Bond Index Diversified hedged in AUD

PRIMARY BENCHMARK DESCRIPTION

The benchmark is a composite index that comprises 50% of the JP Morgan Government Bond Index - Emerging Markets Global Diversified AUD Overlay, 25% the JP Morgan Emerging Markets Bond Index Global hedged in AUD and 25% the JP Morgan Corporate Emerging Markets Bond Index hedged in AUD. The JP Morgan Government Bond Index - Emerging Markets Global Diversified is a uniquely-weighted version of the Emerging Markets Bond Index Global. It limits the weights of those index countries with larger debt stocks by only including specified portions of these countries eligible current face amounts of debt outstanding. The JP Morgan Emerging Markets Bond Index Global tracks total returns for USD denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans, and Eurobonds. JP Morgan Corporate Emerging Market Bond Index Diversified tracks total returns of US dollar-denominated debt instruments issued by corporate entities in Emerging Markets countries. It is not possible to invest in an unmanaged index.

DISTRIBUTION FREQUENCY

Quarterly

SHARE CLASS INCEPTION

31/10/2003

APIR Code

ETL0113AU

Currency

AUD

RELATED

Managers

Michael A. Gomez

Head of Emerging Markets Portfolio Management

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Pramol Dhawan

Portfolio Manager, Emerging Markets

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Yacov Arnopolin

Portfolio Manager, Emerging Markets

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Francesc Balcells

Portfolio Manager, Emerging Markets

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Yields & Distributions

Historical Prices & Distributions

Latest Dividend Distribution ($ Share)1 as of 29/03/2018 $4.15865
Dividend Distribution (FYTD) as of 29/03/2018 $12.36953
Yields & Distributions Footnotes & Disclosures

disclosures

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

Fees & Expenses

Total Annual Management Costs %2 0.7%
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

Emerging Markets 2.25
North America 2.20
Europe - Non-EMU 0.32
Other 0.09
Australia/NZ 0.09
Europe - EMU 0.03
United Kingdom 0.01
Japan 0.00

Credit Quality Exposure -
Market Value %

AAA 20.98
AA 8.56
A 12.96
BBB 29.02
Sub Investment Grade 28.47

Currency Exposure %

Australia/NZ 100.14
North America -54.18
Emerging Markets 44.61
Europe - Non-EMU 8.45
Other 0.59
Japan 0.52
Europe - EMU -0.14
United Kingdom 0.01

Duration %

0-1 yrs 1.17
1-3 yrs 7.57
3-5 yrs 36.33
5-7 yrs 21.84
7-8 yrs 10.90
8-10 yrs 12.87
10+ yrs 9.34
Effective Duration (yrs) 5.00

Sector A