Fund Description
The Fund will utilize a global multi-sector strategy that seeks to combine the Investment Advisor’s total return investment process and philosophy with income maximization. Portfolio construction is founded on the principle of diversification across a broad range of equity and global fixed income securities.
Fund Specific Risks
Credit and Default Risk
A decline in the financial health of an issuer of a fixed income security can lead to an inability or unwillingness to repay a loan or meet a contractual obligation. This could cause the value of its bonds to fall or become worthless. Funds with high exposures to non-investment grade securities have a higher exposure to this risk.
Currency Risk
Changes in exchange rates may cause the value of investments to decrease or increase.
Equity Risk
The value of equity or equity related securities may be affected by stock market movements. Drivers of price fluctuations include general economic and political factors as well as industry or company specific factors.
Derivatives and Counterparty Risk
The use of certain derivatives could result in the fund having a greater or more volatile exposure to the underlying assets and an increased exposure to counterparty risk. This may expose the fund to larger gains or losses associated with market movements or in relation to a trade counterparty being unable to meet its obligations.
Emerging Markets Risk
Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty and operational risk. Investments in these markets may expose the fund to larger gains or losses.
Liquidity Risk
Difficult market conditions could result in certain securities becoming hard to sell at a desired time and price.
Interest Rate Risk
Changes in interest rates will usually result in the values of bond and other debt instruments moving in the opposite direction (e.g. a rise in interest rates likely leads to fall in bond prices).
Mortgage Related and Other Asset Backed Securities Risks
Mortgage or asset backed securities are subject to similar risks as other fixed income securities, and may also be subject to prepayment risk and higher levels of credit and liquidity risk.
Investor Benefits
- Innovative approach to the multi-asset income space, providing the potential for both income and growth
- Access to PIMCO’s expertise in multi-asset investing across global fixed income, global equities, and additional macro-driven tactical strategies in a stable, yet flexible 60/40 construct
The Fund Advantage
The Fund leverages PIMCO’s industry-leading macroeconomic views, time-tested investment process, and robust quantitative capabilities. PBIG is thoughtfully-designed as a diversified and stable multi-asset strategy composed of global core equities, flexible income-oriented fixed income, and tactical flexibility intended to provide a ballast in clients’ portfolios across all market environments.
BENCHMARK
60% MSCI ACWI Index (EUR Hedged) / 40% Bloomberg US Aggregate Index (EUR Hedged)
BENCHMARK DESCRIPTION
The MSCI ACWI Index (EUR Hedged) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The Index consists of a group of country indices comprising developed and emerging market country indices. It is not possible to invest directly in an unmanaged index. Bloomberg US Aggregate Index (EUR Hedged) represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis. It is not possible to invest directly in an unmanaged index.
SHARE CLASS INCEPTION
24/06/2011
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