Global RealReturn Fund


Updated 20 March 2018


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.


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.


Bloomberg Barclays World Government Inflation-Linked Bond AUD Hedged Index


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.











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 29/12/2017 $0.00811
Dividend Distribution (FYTD) as of 29/12/2017 $0.01208
Yields & Distributions Footnotes & Disclosures


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

Fees & Expenses

Total Annual Management Costs %2 0.51%
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

United Kingdom 6.48
North America 3.73
Europe - EMU 1.53
Australia/NZ 0.26
Europe - Non-EMU 0.08
Emerging Markets 0.07
Other 0.00
Japan -0.30

Credit Quality Exposure -
Market Value %

AAA 57.88
AA 29.68
A 0.54
BBB 9.11
Sub Investment Grade 2.78

Currency Exposure %

Australia/NZ 97.51
North America 1.91
Emerging Markets 1.13
Europe - EMU -0.72
Japan 0.30
Other -0.16
Europe - Non-EMU 0.04
United Kingdom -0.01

Duration %

0-1 yrs -0.16
1-3 yrs -0.07
3-5 yrs 8.53
5-7 yrs 7.90
7-8 yrs 8.24
8-10 yrs 9.71
10+ yrs 65.84
Effective Duration (yrs) 11.84

Sector Allocation - Duration in Years

Inflation Linked Bonds 13.23
United States 3.94
United Kingdom 7.15
Europe 1.28
Canada 0.30
Other 0.59
Other Short Duration Instruments -0.03
Non Inflation Linked Bonds -1.39
United States -0.48
United Kingdom -0.64
Europe 0.26
Canada 0.00
Other -0.56
EM Short Duration Instruments 0.00
Net Other Short Duration Instruments 0.02

Risk Characteristics
(Trailing 3 Years)

Standard Deviation3 4.55
Sharpe Ratio4 0.96
Information Ratio5 0.35
Tracking Error6 1.48
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:

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.Mortgage- and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and while generally supported by a government, government-agency or private guarantor, there is no assurance that the guarantor will meet its obligations.Sovereign securities are generally backed by the issuing government. Obligations of U.S. government agencies and authorities are supported by varying degrees, but are generally not backed by the full faith of the U.S. government. Portfolios that invest in such securities are not guaranteed and will fluctuate in value. 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. 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. 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. Diversification does not ensure against loss. 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. Inflation-linked bonds (ILBs) issued by a government are fixed income securities whose principal value is periodically adjusted according to the rate of inflation; ILBs decline in value when real interest rates rise.