In pursuing the Fund’s investment objective, PIMCO applies a wide range of diverse strategies including Duration analysis, Credit analysis, Relative Value analysis, Sector Allocation and Rotation and individual security selection. PIMCO’s investment strategy emphasises active decision making with a long-term focus. 

The primary investment objective of the Fund is to seek high current income, consistent with prudent investment management. Long-term capital appreciation is a secondary objective. 

Benefits of investing in the PIMCO Income Fund - Wholesale Class

INVESTMENT PROCESS

Supported by a deep global presence, the Fund capitalises on PIMCO's thought leadership and time-tested investment process, which guides portfolio construction via a top-down macroeconomic outlook and rigorous bottom-up credit analysis.

EXPERTISE

PIMCO is one of the largest fixed interest managers in the world with over 740 investment professionals globally as at 30 June 2018.

With dedicated sector and regional investment specialists in multiple offices around the world, PIMCO's depth and reach allows efficient and effective access to all major global fixed interest markets.

Over 50 credit analysts and 80 credit and mortgage portfolio managers around the globe providing expertise and credit research into numerous credit securities.

DIVERSIFICATION AND ACTIVE MANAGEMENT

The Fund will utilise a global multi-sector strategy that seeks to combine PIMCO's total return investment process and philosophy with income maximisation.

The Fund is actively managed, which allows PIMCO to focus on securities regarded by PIMCO to have the strongest risk versus return attributes and avoid securities that are regarded by PIMCO to have insufficient value or a likelihood of capital loss.

REGULAR DISTRIBUTIONS

The Fund seeks to provide a regular income stream by way of monthly distributions (the RE may change the distribution frequency without notice).

REGULAR REPORTING

Monthly, quarterly and annual reporting is provided to keep you up to date on your investments.

Risk level

Medium

Investor suitability

The Fund is designed for investors who seek high current income.

About the Fund

Designed for investors who need steady income, the Fund takes a broad-based approach to investing in income-generating bonds. It employs our vast analytical capabilities and sector expertise to help temper the risks of income investing.

Investment objective

The primary investment objective of the Fund is to seek high current income, consistent with prudent investment management. Long-term capital appreciation is a secondary objective.

Investment strategy

In pursuing the Fund's investment objective, PIMCO applies a wide range of diverse strategies including Duration analysis, Credit analysis, Relative Value analysis, Sector Allocation and Rotation and individual security selection. PIMCO's investment strategy emphasises active decision making with a long-term focus. A number of these terms are explained in the Glossary section of the Reference Guide.

How we invest your money

Investments held

The Fund is an actively managed global portfolio that primarily invests directly or indirectly (via investment in other funds managed by PIMCO or its affiliates, each a "Target Fund) in government, corporate, mortgage and other fixed interest securities. The Target Fund (or the specific class in which the Fund invests) may or may not apply the same benchmark as the Fund as described above. As of the date of this PDS, the Fund currently seeks to achieve its investment objective by investing all or part of its assets in one or more of the Target Funds. The Fund may also hold cash and Derivatives. The Derivatives may include futures, forward contracts, options, swap agreements including credit default swaps and mortgage Derivatives. Derivatives may be traded on an exchange or over-the-counter (which are not traded on an exchange).

Asset classes and allocation ranges

• Fixed Income and cash: 0%-100%

• Sub-investment grade: 0%-50%

• Preferred / convertible stock: 0%-25%

• Common stock: 0%-10%

• Loans, illiquid securities: 0%-10%

Investment guidelines

PIMCO has adopted the following guidelines in managing the Fund:

• Duration - The average portfolio Duration of the Fund will normally vary from 0 to 8 years based on PIMCO's forecast for interest rates.

• Credit quality - The Fund may invest up to 50% of net assets in securities rated below Investment Grade. This limit shall not apply to the Fund's investments in mortgage-related and other asset-backed securities.

• Emerging Markets - The Fund may invest up to 20% of its total assets in fixed income Instruments that are economically tied to Emerging Market countries.

• Common and Preferred Stock (including convertible securities) - No more than 25% of the Fund's net assets may be invested in securities that are convertible into equity securities. No more than 10% of the Fund's total assets may be invested in equity securities.

• Illiquid Securities and Loans - The Fund may also invest up to 10% of its net assets in illiquid securities (including bonds and other fixed income instruments which are illiquid) and in Loan Participations and Loan Assignments which constitute money market instruments.

Percentage limitations will apply at the time of investment. The Fund is not required to sell any securities in the event that such limitations are subsequently exceeded, whether as a result of market movements, applications or withdrawals from the Fund or otherwise. A number of these terms are explained in the Glossary section of the Reference Guide. PIMCO will take into account the Fund's direct investments and the Fund's investments in Target Funds in applying the Investment Guidelines. The Target Funds will be managed in accordance with their respective offer documents.