Target Return Fund

ETL0050AU

Updated 21 June 2018

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.

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

RELATED

Managers

Robert Mead

Co-head of Asia-Pacific Portfolio Management

View Profile

Yields & Distributions

Historical Prices & Distributions

Latest Dividend Distribution ($ Share)1 as of 29/03/2018 $2.48754
Dividend Distribution (FYTD) as of 29/03/2018 $12.48337
Yields & Distributions Footnotes & Disclosures

disclosures

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

Fees & Expenses

Total Annual Management Costs %2 0.62%
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). 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.

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

North America 0.26
Emerging Markets 0.25
Australia/NZ 0.20
Europe - Non-EMU 0.01
Other 0.00
Europe - EMU -0.25
United Kingdom -0.41
Japan -1.16

Credit Quality Exposure -
Market Value %

AAA 48.95
AA 9.19
A 12.14
BBB 23.60
Sub Investment Grade 6.13

Risk Characteristics
(Trailing 3 Years)

Standard Deviation3 1.26
Sharpe Ratio4 1.54
Information Ratio5 0.47
Tracking Error6 1.27

Duration %

0-1 yrs 6.84
1-3 yrs -222.07
3-5 yrs -142.63
5-7 yrs -9.52
7-8 yrs 5.75
8-10 yrs 348.72
10+ yrs 112.91
Effective Duration (yrs) -1.10

Currency Exposure %

Australia/NZ 98.59
Emerging Markets 5.41
Other -2.33
Europe - EMU -1.49
Japan 1.08
United Kingdom -0.87
Europe - Non-EMU -0.77
North America 0.37

Strategy Allocation Market Value %

Anchor Portfolio 64.08
Macro Strategies 19.50
Spread Strategies 7.89
Volatility Strategies 4.16
Alternative Risk Premia 4.37
Portfolio Composition Footnotes & Disclosures

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