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Rebate Offer
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N/A
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Minimum Initial Investment
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$5,000
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Expected Close Date
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Ongoing
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| Product Disclosure Statement |  Download Product Disclosure Statement (PDS) |
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The EQT PIMCO Global Bond Fund offers investors diversified exposure to international fixed interest markets. The Fund invests in government, corporate, mortgage and other fixed interest securities. The Fund seeks to maximise total returns by investing in global fixed interest securities and to seek to preserve capital through prudent investment management and is benchmarked against the Barclays Capital Global Aggregate Bond Index Hedged in Australian dollars.
The Fund has a five star rating from both Standard & Poor’s and Morningstar. Click here to view the Morningstar fund profile.
| Total Returns as at 31 Jul 2011* |
| 1 year pa |
3 years pa |
5 years pa |
Since inception pa^ |
| 9.77% |
11.18% |
8.78% |
7.77% |
To achieve the Fund’s investment objective, PIMCO applies a wide range of strategies which emphasise 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. PIMCO concentrates on two sources of return:
- Sector Allocation and Rotation; and
- ‘bottom up’ Credit Analysis of individual bonds and issuers.
Sector Allocation and Rotation
PIMCO’s sector allocation is driven by its economic overview which is determined by a combination of its long-term and short-term outlook. The long-term outlook focuses on economic fundamentals such as trends in productivity and interest rates over a five year period whilst the cyclical outlook finetunes the secular outlook over a one year period.
Bottom up Credit Analysis
PIMCO’s credit analysts internally rate every security based on:
- Cash flow: is it growing and predictable or are there limitations?
- Qualitative factors: what are the relevant qualitative factors, such as industry leadership, management strength, prudent accounting, and financial flexibility?
- Capital structure: will the issuer be able to withstand cyclical downturns through having strong asset support with sufficient liquidity?
- Industry dynamics: does the relevant industry demonstrate good growth potential, an ability to access Capital Markets, and an ability to be defensive in times of a downturn?
In managing the fund, the manager has established a set of guidelines focused on duration, credit quality and currency hedging. The average portfolio duration of the fund is expected to range between three to seven years. The Fund will invest predominantly in Investment Grade securities but may in addition invest in below investment-grade securities that are rated B- or higher. And PIMCO will normally seek to hedge the fund 90%-110% to Australian dollars.
Through the EQT PIMCO Global Bond Fund, Australian investors are able to access the expertise of over 200 specialists devoted entirely to analysis and portfolio management across every sector of the bond market. PIMCO has ten global offices and over A$1 trillion in assets under management as at 31 December 2009.
| Fee Disclosure | | There are no entry or exit fees on the EQT PIMCO Global Bond Fund. 2020 DIRECTINVEST may receive a trailing commission of up to 0.20% pa. This trailing commission is paid by the Fund Manager and is not an additional charge to the investor. |
| Download Product Disclosure Statement (PDS) | | Fund Fact Sheet |
* PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE PERFORMANCE
^ Fund inception date is 31 July 1998
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