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 and seeks to avoid extreme swings in Duration or maturity with a view to creating a steady stream of returns.

To seek to maximise long-term returns in a manner consistent with the preservation of capital and prudent investment management.

Benefits of investing in the PIMCO Dynamic Bond Fund - Wholesale Class

Significant features and benefits of investing in the Fund are:

Investment Process

• Supported by a deep global presence, the Fund benefits from 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 more than 785 investment professionals globally as at 30 June 2019.

• Dedicated experienced investment professionals focused on the domestic fixed interest market who provide coverage of active investment opportunities.

Diversification And Active Management

• Designed as a core allocation to Australian and New Zealand fixed interest, the Fund may provide diversification benefits amongst an allocation to other asset classes, such as equities.

• The Fund aims to provide diversified exposure to various sectors of the Australian and New Zealand fixed interest universe, which can improve risk-adjusted returns.

• 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 quarterly 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

Low

Investor suitability

The Fund is designed for investors who wish to have a broadly diversified exposure primarily to Australian and New Zealand fixed interest markets.

The Fund is designed for investors who wish to have a broadly 
diversified exposure to global fixed interest markets

About the Fund

The Dynamic Bond Fund is an actively managed portfolio of fixed interest securities predominantly denominated in Australian and New Zealand currencies.

The Fund takes a flexible approach to capturing global opportunities and managing risk. It strives to actively mitigate downside risk, provide attractive risk-adjusted returns and preserve the diversification benefits of a traditional fixed income portfolio. 

Why Invest In This Fund

Tactically allocated across a global opportunity set

By removing benchmark constraints, the Fund gains significant latitude to tap into credit, interest rate, volatility and currency opportunities across global sectors and regions.

Absolute return focus

The Fund's defensive capabilities and wide duration range (-3 to +8 years) help it to achieve positive returns across a wide range of market environments, including varied interest rate environments.

A unique portfolio complement

The Fund seeks to provide many of the benefits associated with core bond funds - such as capital preservation, liquidity and diversification - while achieving positive absolute returns over full market cycles. The Fund is primarily designed to be a complement to core bond funds.

How we invest your money

The Fund primarily invests in government, semi-government, corporate, mortgage and other fixed interest securities denominated in Australian and New Zealand dollars. The Fund may also hold cash and Derivatives.

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 and seeks to avoid extreme swings in Duration or maturity with a view to creating a steady stream of returns. A number of these terms are explained in the Glossary section of the Reference Guide.

Investment guidelines

PIMCO has adopted the following guidelines in managing the Fund:

• Duration — The average portfolio Duration of the Fund will vary based on PIMCO's forecast of interest rates and under normal conditions it is expected to range between plus/minus two years versus the Benchmark.

• Credit quality — The Fund will invest predominantly in Investment Grade securities but may in addition invest in below Investment Grade securities.

• Currency hedging — PIMCO will normally seek to hedge the Fund's foreign currency exposure between 90% and 110% to Australian dollars.

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. The Fund is not required to sell a security in the event such security is downgraded below the Fund's minimum investment quality, provided that such security met the Fund's minimum quality standard at the time of purchase.

A number of these terms are explained in the Glossary section of the Reference Guide.

Asset classes and allocation ranges

• Fixed income and cash: 100%