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FirstChoice WS Pers Super - PIMCO Wholesale Australian Bond

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/106616-2024-06-22-02:27.pdf
FUND MANAGER Colonial First State Investment
ASX Code
APIR FSF0617AU
ASSET CLASS FIXED INTEREST
INVESTMENT STYLE

Primarily invests in government, semi-government, corporate, mortgage and other fixed interest securities denominated in Australian and New Zealand dollars. 

INVESTMENT PROFILE To achieve maximum total return and to seek to preserve capital through prudent investment management.
CURRENCY MANAGEMENT Hedged
INCEPTION DATE 30-06-2004
BENCHMARK Bloomberg AusBond Composite 0+ Yr Index
FUND SIZE Bloomberg AusBond Composite 0+ Yr Index
DISTRIBUTION FREQUENCY Quarterly
NO. OF HOLDINGS
FEES 0.74% p.a.
STRUCTURE

Benefits

Benefits

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

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

Significant features and benefits of investing in the Fund are:

  • Investment Process - supported by a deep global presence, the Fund capitalises on PIMCO's thought leadership and time-tested investment process, which guide portfolio construction via 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 650 investment professionals globally as at 30 September 2016.
  • 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 and quarterly reporting is provided to keep you up to date on your investments.

Please note that the RE does not guarantee the repayment of capital or any rate of return or the Fund's investment performance.

Risk Level - Low

There is a low level risk of loss of investment over one year. Investment in the Fund has the potential to produce medium level returns over the suggested time frame.

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.

RISK LEVEL Medium to high
INVESTOR SUITABILITY

Individuals who want: A super account to:


Make personal super contributions and/or receive super guarantee contributions from their employer or spouse

Invest an existing super benefit
To invest in a concessionally taxed environment
To invest in a pooled investment arrangement
To make an active investment choice in relation to their super (potentially with the assistance of a financial adviser)
To invest in one, or a combination of, the investment options that sit within the  Australian Bond

Risks

Title
Detail

Key Features

Investment Strategy

In pursuing the Fund 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 Objective

To achieve maximum total return by investing in fixed interest securities predominantly denominated in Australian or New Zealand currencies, and to seek to preserve capital through prudent investment management.

Investments Held

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.

Fund Overview

True core bond holding

The Australian Bond Fund seeks to provide all the benefits investors have come to expect from a core bond holding, including consistent income and low volatility, which can help stabilise portfolio returns. The fund is a well-diversified portfolio of primarily Australian and New Zealand fixed interest securities that seeks to lower risks while providing opportunities for enhanced returns.

Why Invest In This Fund?

Australian high-quality yield opportunities

Designed specifically for Australian investors, the fund invests predominantly in a wide range of high-quality bonds from issuers in Australia and New Zealand, ranging from Commonwealth and state government bonds to corporate bonds and mortgage-backed securities.

Flexibility at work

The fund has the flexibility to anticipate and respond to changes in Australian credit market and interest rate environments. It aims to avoid investments that put capital permanently at risk and has a strong track record of providing returns above its benchmark.

A time-tested investment process with proven Australian expertise

The fund's portfolio positioning and security selection are guided by PIMCO's time-tested investment process: our rigorously developed macro outlook, our bottom-up credit analysis and our robust risk management. The fund's portfolio management team includes specialists dedicated to each sector in the Australian market.

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

Local management, global expertise

PIMCO's Australian Fixed Interest mandates are managed locally from the Sydney office by a specialised and high experienced domestic portfolio management team who are fully integrated into PIMCO's investment process and has access to PIMCO's vast global resources.

Mandate

How we invest your money

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 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% to 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.

Asset Classes and Allocation Ranges

Indicative asset allocation range (as a % of NAV)

  • Fixed Income and cash 100%

In order to meet the Fund's investment objectives, asset classes and investment ranges may be changed from time to time. PIMCO has full discretion in relation to asset allocation ranges. We will give unitholders written notice of any material variation which we believe they would not have reasonably expected.