Global RealReturn Fund

ETL0020AU

Updated 22 June 2018

Objective

To seek maximum long-term return consistent with the preservation of capital and prudent investment management.

Investments Held

Principal investment both directly and indirectly (via other funds) in inflation-linked bonds issued by governments or their agencies and corporates.

Overview

Fund Overview

Help protect long-term purchasing power

Inflation often appears quickly and unexpectedly, making it important for long-term investors to be prepared in all market environments. The Fund aims to help investors protect their purchasing power against the effects of inflation by seeking real (inflation-adjusted) returns primarily from Global Inflation-Linked Bonds.

Why Invest In This Fund

A high quality inflation hedge

Active management has helped the fund deliver short- and long-term returns solidly ahead of inflation, while the portfolio’s investment-grade orientation has provided a smoother ride than other real return assets such as commodities and real estate.

Potential diversification benefits

While traditional asset classes such as stocks and bonds usually move inversely to inflation, Inflation-Linked Bonds tend to move in the same direction as inflation. Investing in assets with low correlations to one another, i.e., assets influenced by different factors, can enhance a portfolio’s diversification, potentially lowering overall volatility. Like bond investments in general, Inflation-Linked Bonds can decline in value if interest rates rise, and may be particularly sensitive if real interest rates rise rapidly.

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

PIMCO’s expertise

By drawing on the expertise of our global real return team, the Fund is able to take advantage of our macro inflation outlook and bottom-up research capabilities.

PRIMARY BENCHMARK

Bloomberg Barclays World Government Inflation-Linked Bond AUD Hedged Index

PRIMARY BENCHMARK DESCRIPTION

Bloomberg Barclays World Government Inflation-Linked Bond AUD Hedged index that measures the performance of the major government inflation-linked bond markets. The Index includes inflation-linked debt issued by the following countries: Australia, Canada, France, Sweden, United Kingdom, and the United States. It is not possible to invest directly in an unmanaged index.

DISTRIBUTION FREQUENCY

Quarterly

SHARE CLASS INCEPTION

28/04/2004

APIR Code

ETL0020AU

Currency

AUD

RELATED

Managers

Mihir P. Worah

CIO Asset Allocation and Real Return

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Jeremie Banet

Portfolio Manager, Real Return

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Michael Althof

Portfolio Manager, Real Return

View Profile

Yields & Distributions

Historical Prices & Distributions

Latest Dividend Distribution ($ Share)1 as of 29/03/2018 $0.00080
Dividend Distribution (FYTD) as of 29/03/2018 $0.01289
Yields & Distributions Footnotes & Disclosures

disclosures

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

Fees & Expenses

Total Annual Management Costs %2 0.51%
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

United Kingdom 6.02
North America 3.53
Europe - EMU 1.39
Australia/NZ 0.24
Europe - Non-EMU 0.07
Emerging Markets 0.04
Other 0.00
Japan -0.21

Credit Quality Exposure -
Market Value %

AAA 58.41
AA 27.94
A 1.65
BBB 9.66
Sub Investment Grade 2.34

Currency Exposure %

Australia/NZ 97.44
North America 1.06
Emerging Markets 0.68
Japan 0.57
Europe - EMU 0.19
Other -0.16
United Kingdom 0.14
Europe - Non-EMU 0.07

Duration %

0-1 yrs -0.06
1-3 yrs 1.31
3-5 yrs 7.78
5-7 yrs 9.37
7-8 yrs 9.79
8-10 yrs 4.19
10+ yrs 67.62
Effective Duration (yrs) 11.09

Sector Allocation - Duration in Years

Inflation Linked Bonds 12.54
United States 3.80
United Kingdom 6.74
Europe 1.24
Canada 0.30
Other 0.48