Global RealReturn Fund

ETL0020AU

Updated 21 September 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

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Yields & Distributions

Historical Prices & Distributions

Latest Dividend Distribution ($ Share)1 as of 29/06/2018 $0.01174
Dividend Distribution (FYTD) as of 29/06/2018 $0.02463
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