Asia Strategic Interest Bond Fund

PIMCO GIS Asia Strategic Interest Bond Fund

A flexible strategy for stable income

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  • The Fund may invest in a broad array of fixed income instruments which in the investment advisor’s view typically generate attractive levels of income and will concentrate its investments in bonds and other fixed income instruments in Asia ex-Japan.
  • Investments in fixed income instruments are subject to interest rate, credit, credit rating and downgrade risks. The Fund is also subject to risks of investing in high yield, below investment grade and unrated securities.
  • It is subject to risks associated with emerging markets, concentration / strategy, valuation, sovereign debt, mortgage-related and other asset-backed securities, currency, liquidity and repurchase / reverse repurchase transactions.
  • It may invest more than 10% in non-investment grade securities issued or guaranteed by a single sovereign issuer (e.g. Sri Lanka) which may be subject to increased credit risk and risk of default.
  • It may invest in financial derivative instruments which may involve additional risks (e.g. market, counterparty, liquidity, volatility and leverage risks).
  • It may at its discretion pay dividends out of capital directly or effectively, which amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to the original investment. Any distributions involving the payment of dividends out of the Fund’s capital may result in an immediate reduction of the Fund’s net asset value per share.
  • Investments involve risks and your investment may suffer significant losses.
  • Investors should not rely solely on this material and should read the offering document of the Fund for further details including the risk factors.

Key Benefits of the PIMCO GIS Asia Strategic Interest Bond Fund

Steady and reliable income stream

With exposure to a range of issuers across sectors and geographies, no single issuer has an outsized effect on the fund.

Attractive total return potential with lower volatility

Asia fixed income may provide attractive income and potential for capital gains with historically lower volatility compared with other high-yielding sectors. The larger outstanding amounts with higher liquidity, broader sectoral composition, and stronger investor base would warrant a dedicated allocation versus the broader emerging markets asset class.

Active, flexible investment approach

The fund is benchmark-agnostic and actively managed to extract value from what we believe are the best opportunities in the Asian bond market.

PIMCO’s advantage in Asia credit

Large, dedicated Asia portfolio management team

PIMCO’s Asia portfolio management team is among the largest and most experienced in the region. It includes 15 portfolio managers and 9 credit research analytics located in, and dedicated to the APAC region.1

1As of 30 September 2020

Integrated with PIMCO’s global investment process

Global integrated investment platform and uniform process and insights allows the Asia credit team to source insights and ideas globally.

Independent credit ratings

Forward-looking investment process and internal rating system helps PIMCO anticipate credit events and seek to gain exposure to rising stars while avoiding fallen angels.

Direct access to issuers

PIMCO’s size and scale allows us to maintain direct high quality relationships with issuers, enhancing its ability to structure advantageous terms and secure favorable allocations or reverse inquiries.

Risk management and credit analytics

Proprietary internal risk management and analytics systems allow PIMCO to model risk contributions from individual securities and manage desired portfolio characteristics.

Learn more about PIMCO’s Asia credit capabilities:

How Internal Research Capabilities Make PIMCO Stand Apart

How PIMCO’s Bottom-up Credit Research Works for Investors

Asia fixed income – potential for attractive risk-adjusted returns

The Asia fixed income market is a high quality, rapidly growing universe with many compelling opportunities. The market is five times larger than it was a decade ago driven by strong demand from domestic investors.

Asia fixed income offers relatively attractive risk-adjusted returns, higher quality investments, and historically lower volatility compared with broader emerging markets.

Asia fixed income is a broad market with significant variation in performance and risk exposure across issuers, countries and sectors. PIMCO’s time-tested credit selection process and active approach, along with our long history of investing in Asia, has helped investors uncover the most attractive opportunities through various market cycles.

HELPING INVESTORS NAVIGATE THE ASIA FIXED INCOME MARKETS

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Disclosures

Source: PIMCO.

Past performance is not a guarantee or a reliable indicator of future results.

All investments contain risk and may lose value. 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. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and low interest rate environments increase this risk. Reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed. Mortgage- and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and while generally supported by a government, government-agency or private guarantor, there is no assurance that the guarantor will meet its obligations. High yield, lower-rated securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Investing in foreign-denominated and/or -domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Diversification does not ensure against loss.

Statements concerning financial market trends or portfolio strategies are based on current market conditions, which will fluctuate. There is no guarantee that these investment strategies will work under all market conditions or are appropriate for all investors and each investor should evaluate their ability to invest for the long term, especially during periods of downturn in the market. Outlook and strategies are subject to change without notice.

Investment involves risk including possible loss of the principal amount invested. PIMCO Funds: Global Investors Series plc is an umbrella type open-ended investment company with variable capital and is incorporated with limited liability under the laws of Ireland with registered number 276928. PIMCO Funds: Global Investors Series plc has appointed PIMCO Asia Limited as the Hong Kong Representative. Investors should consider the investment objectives, risks, charges and expenses of the Funds carefully before investing. This and other information are contained in the Fund’s Hong Kong Prospectus, which may be obtained from our website www.pimco.com.hk or by contacting the Hong Kong Representative or your fund distributor and/or financial advisor. Prospective investors should read the Fund’s Hong Kong Prospectus before deciding whether to subscribe for or purchase shares in any of the Funds. Investor may also wish to seek advice from a financial advisor before making a commitment to invest and in the event you choose not to seek advice, you should consider whether the investment is suitable for you. The Funds typically offer different share classes, which are subject to different fees and expenses (which may affect performance), have different minimum investment requirements and are entitled to different services. Unless otherwise stated in the prospectus, the Fund referenced in this website is not managed against a particular benchmark or index, and any reference to a particular benchmark or index in this website is made solely for risk or performance comparison purposes. Fund performance will be available after the Fund has attained a 6 month investment track record.