Emerging Markets Bond Fund


Updated 15 March 2018


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.


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.


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


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.











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 29/12/2017 $2.04523
Dividend Distribution (FYTD) as of 29/12/2017 $8.21089
Yields & Distributions Footnotes & Disclosures


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

Fees & Expenses

Total Annual Management Costs %2 0.7%
Fees & Expenses Footnotes & 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).


  • 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


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 2.45
North America 2.22
Europe - Non-EMU 0.34
Other 0.10
Australia/NZ 0.09
Europe - EMU 0.06
United Kingdom 0.01
Japan 0.00

Credit Quality Exposure -
Market Value %

AAA 21.47
AA 5.69
A 14.53
BBB 32.50
Sub Investment Grade 25.80

Currency Exposure %

Australia/NZ 100.19
North America -57.91
Emerging Markets 48.00
Europe - Non-EMU 8.68
Other 0.52
Japan 0.51
United Kingdom 0.00
Europe - EMU 0.00

Duration %

0-1 yrs 1.03
1-3 yrs 8.17
3-5 yrs 30.69
5-7 yrs 20.79
7-8 yrs 13.46
8-10 yrs 14.70
10+ yrs 11.16
Effective Duration (yrs) 5.27

Sector Allocation - Duration in Years

Government Related 0.12
Inflation Linked 0.00
Securitised 0.18
Covered Bonds and Pfandbriefe 0.00
Investment Grade Credit 0.09
High Yield Credit 0.03
Municipals 0.00
Emerging Markets 4.84
Other 0.00
Net Other Short Duration Instruments 0.02

Risk Characteristics
(Trailing 3 Years)

Standard Deviation3 8.27
Sharpe Ratio4 0.63
Information Ratio5 -0.32
Tracking Error6 1.65
Portfolio Composition Footnotes & 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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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:

The Fund invests in other funds and performance is subject to underlying investment weightings which will vary. The cost of investing in the Fund will generally be higher than the cost of investing in a fund that invests directly in individual stocks and bonds. 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. 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. Equities may decline in value due to both real and perceived general market, economic and industry conditions. 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. Investing in distressed companies (both debt and equity) is speculative and may be subject to greater levels of credit, issuer and liquidity risks, and the repayment of default obligations contains significant uncertainties; such companies may be engaged in restructurings or bankruptcy proceedings. Entering into short sales includes the potential for loss of more money than the actual cost of the investment, and the risk that the third party to the short sale may fail to honor its contract terms, causing a loss to the portfolio. 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. The Fund is non-diversified, which means that it may invest its assets in a smaller number of issuers than a diversified fund.

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.