Benefits of investing in the PIMCO Wholesale Plus Diversified Fixed Interest Fund

Some of the benefits that may arise from an investment in the Fund include the following:

• Expertise: Access to the Manager's expertise, one of the largest fixed interest managers in the world. Access to dedicated sector and regional investment specialists in multiple offices around the world, the Manager's depth and reach allows access to all major global fixed interest markets. Access to dedicated experienced investment professionals focused on the domestic fixed interest market who provide coverage of active investment opportunities.

• Diversification: Diversified exposure to domestic and international fixed interest securities that lowers risks while providing opportunities for enhanced returns.

• Potential regular distributions: The Fund (through the Underlying Fund) seeks to provide a regular income stream by way of quarterly distributions (the responsible entity of the Underlying Fund may change the distribution frequency without notice).

The PIMCO Wholesale Plus Diversified Fixed Interest Fund (the Fund) is likely to be appropriate for a consumer:
– seeking to achieve a maximum total return through a regular income stream and to preserve capital through prudent investment management, through investing in an actively managed portfolio of Australian and overseas fixed interest securities. 
– intending to access the Fund through an Investor Directed Portfolio Service (IDPS), IDPS-like scheme or a nominee or custody service, a managed account or any other service or platform approved by us (collectively referred to as an 'Investment Service') or through a superannuation fund. The Fund isn't open to direct investors;
– intending to use the investment in the Fund as a major allocation, core component, minor or satellite allocation within aportfolio;
– who has an investment timeframe of at least 4 years;
– who has a 'Medium to High' risk/return profile; and
– seeking the ability to make daily withdrawal requests and for withdrawal proceeds to be paid typically within 10 Business Days to the consumer's Investment Service or superannuation fund under normal market conditions.

About the Fund

The Fund will invest into the Class A units in the PIMCO Diversified Fixed Interest Fund APIR ETL0116AU (Underlying Fund), which is an actively managed portfolio of Australian and overseas fixed interest securities.

How we invest your money

The Underlying Fund invests in indirect and direct government, corporate, mortgage and other fixed interest securities. While the Underlying Fund invests predominately in investment grade* securities, the Underlying Fund may invest in non-investment grade fixed interest securities and emerging market debt. The Manager currently seeks to achieve its investment objective by investing in other funds it manages. The Underlying Fund may also hold cash.

In pursuing the investment objective the Manager applies a wide range of diverse strategies including duration** analysis, credit analysis, relative value analysis***, sector allocation and rotation**** and individual security selection. The Manager's investment strategy emphasises active decision making with a long-term focus and seeks to avoid extreme swings in duration or maturity with a view to creating a steady stream of returns.

*A credit rating of investment grade' indicates that the securities have a lower probability of default on interest and capital repayments, compared to non-investment grade securities.

**Duration' is the measure of the sensitivity of fixed interest investments to changing interest rates, and is measured in terms of years (the larger the number of years in duration, the higher the price sensitivity to changes in interest rates). Duration takes into account the redemption date, the dates when interest is paid, and the amount of that interest.

***Relative value analysis' is an assessment of the intrinsic value of a company, government or financial institution relative to other companies, governments or financial institutions.

****There are several sectors to global bond markets, including government bonds, corporate bonds, high yield securities, mortgages, and inflation-linked bonds and emerging market debt. Sector rotation' refers to the Manager actively allocating' the risk between the different sectors of the bond market.