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Fund Fact Sheet Quarterly Investment Report

Target Return Fund

ETL0050AU

Updated 23 April 2024

Fund Fact Sheet Quarterly Investment Report

Objective

To maximise total returns over the Bloomberg AusBond Bank Bill Index consistent with prudent capital preservation and income generation.

Investments Held

Principal investment in global fixed interest securities.

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Overview

Fund Overview

Diversified Approach to Absolute Return

The Target Return Fund is an absolute return strategy that aims to provide incremental returns with a focus on capital preservation. Anchored by high quality Australian bonds, the fund maintains a dynamic and targeted allocation between PIMCO’s best macroeconomic, credit, volatility and interest rate strategies.

Why Invest In This Fund

A dynamic allocation to PIMCO’s best multi-strategy ideas

The fund taps into four alpha return engines: macroeconomic, global and local credit, multi-asset volatility and interest rate strategies, all driven by PIMCO’s global and local expertise in each area. The allocation to these return engines is actively managed using PIMCO’s top-down and bottom-up insights.

Anchored by a bedrock of Australian bonds

High-quality domestic fixed interest securities form the ‘bedrock’ of the absolute return generation in the fund. It also aims to take advantage of PIMCO’s directional views in domestic rates.

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

Dedicated expertise to each return engine

Each return engine of the fund is managed by PIMCO sector specialists in each area from across the globe. The overall allocation and risk positioning is overseen by an Australian-based portfolio management team.

PRIMARY BENCHMARK

Bloomberg AusBond Bank Bills Index

PRIMARY BENCHMARK DESCRIPTION

The Bloomberg AusBond Bank Bills Index is an unmanaged index representative of the total return performance of Australian money market securities. It is not possible to invest in an unmanaged index.

DISTRIBUTION FREQUENCY

Quarterly

SHARE CLASS INCEPTION

06/09/2007

APIR Code

ETL0050AU

Currency

AUD

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Managers

Robert Mead

Head of Australia, Co-head of Asia-Pacific Portfolio Management

View Profile for Robert Mead

Yields & Distributions

Historical Prices & Distributions

Latest Dividend Distribution ($ Share)1 as of 30/06/2022 $30.89159
Dividend Distribution (FYTD) as of 30/06/2022 $59.94874

disclosures

1The Fund generally distributes income quarterly at the end of March, June, September and December.

Fees & Expenses

Total Annual Management Fee %2 0.62%

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). For the Target Return Fund the figure noted above is actually a reference to “management fee” instead of “management costs”, each as defined in the Information Memorandum for the applicable Unit Class, which has been amended for either compliance or consistency with the fees and costs disclosure requirements set out under the Corporations Act 2001 (Cth), as amended by ASIC Class Order 14/1252.
In addition to the Management Fee there may be other fees and costs associated with an investment in this fund. For a detailed explanation on fees and costs please refer to the Product Disclosure Statement

Performance

All data as of

All data as of

Click here to view the Price and Performance for all Australia

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

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

Australia/NZ 0.45
United Kingdom 0.45
Europe - EMU 0.14
Emerging Markets 0.09
Other 0.05
Europe - Non-EMU -0.19
North America -0.59
Japan -0.85

Credit Quality Exposure -
Market Value %

AAA 27.84
AA 46.59
A 10.52
BBB 11.34
Sub Investment Grade 3.71

Risk Characteristics
(Trailing 3 Years)

Standard Deviation3 2.46
Sharpe Ratio4 0.68
Information Ratio5 0.92
Tracking Error6 2.41

Duration %

0-1 yrs -136.06
1-3 yrs 77.96
3-5 yrs -61.99
5-7 yrs -326.85
7-8 yrs -28.60
8-10 yrs -56.37
10+ yrs 631.91
Effective Duration (yrs) -0.45

Currency Exposure %

Australia/NZ 97.34
North America 12.44
Europe - Non-EMU -6.95
Emerging Markets 5.67
Other -5.41
Europe - EMU -3.30
Japan 1.75
United Kingdom -1.54

Strategy Allocation Market Value %

Anchor Portfolio 55.17
Macro Strategies 29.36
Spread Strategies 0.00
Alternative Risk Premia 15.47

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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Disclosures

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. Currency rates may fluctuate significantly over short periods of time and may reduce the returns of a 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. 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. All investments contain risk and may lose value. 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. 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. 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. 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. Swaps are a type of derivative; swaps are increasingly subject to central clearing and exchange-trading. Swaps that are not centrally cleared and exchange-traded may be less liquid than exchange-traded instruments.Investments in illiquid securities may reduce the returns of a portfolio because it may be not be able to sell the securities at an advantageous time or price. The use of leverage may cause a portfolio to liquidate positions when it may not be advantageous to do so to satisfy its obligations or to meet segregation requirements. Leverage, including borrowing, may cause a portfolio to be more volatile than if the portfolio had not been leveraged. Absolute return portfolios may not necessarily fully participate in strong (positive) market rallies.

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.