Morningstar Upgrades PIMCO GIS Diversified Income Fund to Gold

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  • The Fund may invest primarily in fixed income instruments, including high yield securities and emerging market securities.
  • Investments in fixed income securities are subject to interest rate, credit 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 the risks associated with emerging markets, sovereign debt, currency, liquidity, and repurchase / reverse repurchase transactions.
  • It may invest extensively 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.

Why PIMCO GIS Diversified Income Fund?

A highly diversified multi sector credit strategy that helps investors stay ahead of uncertain markets by moving dynamically across credit sectors. The Fund follows a flexible approach with a focus on downside protection, that can capture opportunities and reduce risk exposures when market conditions demand it.

Why Now?

Why invest in PIMCO GIS Diversified Income Fund today?

Flexibility and active sector rotation can enhance return potential with higher credit quality

With global volatility expected to continue, PIMCO GIS Diversified Income Fund can identify and capture investment opportunities across global credit sectors to maximise alpha-generating potential.

Duration Average
Quality
PIMCO GIS Diversified
Income Fund
6.11 A
Global High Yield Index 3.64 BA-
Emerging Markets Index 7.81 BAA-
Global Credit Index 7.07 A
Global Aggregate Index 7.28 AA-

As of 30 September 2020. SOURCE: PIMCO, Bloomberg
Emerging Markets Index: JPMorgan EMBI Global (USD Hedged) , Global High Yield Index: ICE BofA Merrill Lynch BB-B Rated Developed Markets High Yield Constrained Index (USD Hedged), Global Credit Index: Bloomberg Barclays Global Aggregate Credit ex Emerging Markets Index (USD Hedged), Global Aggregate Index: Bloomberg Barclays Global Aggregate Index
* Includes Govt Guaranteed, International, Converts/Eqy/Pfd, etc.

Please note that the above benchmarks or index/indices are not used in the active management of the Fund, in particular for performance comparison purposes. They are for information purposes only.

The Fund is actively managed in reference to the 1/3 each - Bloomberg Barclays Global Aggregate Credit ex Emerging Markets, USD Hedged; ICE BofAML BB B Rated Developed Markets High Yield Constrained Index, USD Hedged; and JPMorgan EMBI Global, USD Hedged as further outlined in the Prospectus.

A multi-sector approach can balance the risk and reward of more volatile sectors

No single sector is a constant source of market outperformance. The Fund aims to optimise credit market exposure and minimise drawdowns by dynamically rotating among sectors.

A multi-sector approach can balance the risk and reward of more volatile sectors 
Portfolio fit

How can PIMCO GIS Diversified Income Fund add value to your portfolio?

There are 3 potential ways the fund can add value to an investor’s portfolio:

  • Broader credit sector exposure
    Drawing on diverse sources of yield, the Fund does not rely on a single sector
  • Equity substitute
    The Fund may reduce the volatility of an equity-heavy portfolio and increase current income without significantly detracting from total return expectations
  • Attractive returns with limited downside risk
    Designed to generate total returns similar to high yield, but with lower volatility

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Management team

Award-winning portfolio managers

The seasoned portfolio management team has an average experience of 22 years and is supported by 60+ dedicated credit analysts.

Eve Tournier

Eve Tournier

Managing Director

Multi-Sector Credit

Read bio
Dan Ivascyn

Dan Ivascyn

Managing Director

Group CIO

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Alfred Murata

Alfred Murata

Managing Director

Multi-Sector/Mortgage Credit

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Sonali Pier

Sonali Pier

Portfolio Manager

Multi-Sector Credit

Read bio

Learn more about PIMCO GIS Diversified Income Fund and our other product offerings

Get in touch with us today.

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Disclosures

Source: PIMCO, index provider for benchmark data.

1Emerging Market Debt includes EM Corp and EM Sov; Emerging Market Corp is represented by the JPMorgan CEMBI Broad Composite, Emerging Market Sov is represented by the JPMorgan EMBIG Diversified Composite and High Yield is represented by the BofA Merrill Lynch BB-B Rated Developed Markets High Yield Index.

The Morningstar Analyst rating is for the Institutional USD Accumulation and Income share classes as of 30 September 2020.

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. The information is not for use within any country or with respect to any person(s) where such use could constitute a violation of the applicable law. The information contained in this communication is intended to supplement information contained in the prospectus for this Fund and must be read in conjunction therewith. Investors should consider the investment objectives, risks, charges and expenses of these Funds carefully before investing. This and other information is contained in the Fund's prospectus. Please read the prospectus carefully before you invest or send money. Past performance is not a guarantee or a reliable indicator of future results and no guarantee is being made that similar returns will be achieved in the future. Returns are net of fees and other expenses and include reinvestment of dividends. The performance data represents past performance and investment return and principal value will fluctuate so that the PIMCO GIS Funds shares, when redeemed, may be worth more or less than the original cost. Potential differences in performance figures are due to rounding. The Fund may invest in non-U.S. or non-Eurozone securities which involves potentially higher risks including non-U.S. or non-Euro currency fluctuations and political or economic uncertainty. For informational purposes only. Please note that not all Funds are registered for sale in every jurisdiction. Please contact PIMCO for more information. For additional information and/or a copy of the Fund's prospectus, please contact the Administrator: State Street Fund Services (Ireland) Limited, Telephone +353-1-776-0142, Fax +353-1-562-5517. © 2020.

Benchmark

Unless referenced in the prospectus and relevant key investor information document, a benchmark or index in this material is not used in the active management of the Fund, in particular for performance comparison purposes.

Where referenced in the prospectus and relevant key investor information document a benchmark may be used as part of the active management of the Fund including, but not limited to, for duration measurement, as a benchmark which the Fund seeks to outperform, performance comparison purposes and/or relative VaR measurement. Any reference to an index or benchmark in this material, and which is not referenced in the prospectus and relevant key investor information document, is purely for illustrative or informational purposes (such as to provide general financial information or market context) and is not for performance comparison purposes. Please contact your PIMCO representative for further details.

Correlation

As outlined under “Benchmark”, where referenced in the prospectus and relevant key investor information document, a benchmark may be used as part of the active management of the Fund. In such instances, certain of the Fund’s securities may be components of and may have similar weightings to the benchmark and the Fund may from time to time show a high degree of correlation with the performance of any such benchmark. However the benchmark is not used to define the portfolio composition of the Fund and the Fund may be wholly invested in securities which are not constituents of the benchmark.

Investors should note that a Fund may from time to time show a high degree of correlation with the performance of one or more financial indices not referenced in the prospectus and relevant key investor information document. Such correlation may be coincidental or may arise because any such financial index may be representative of the asset class, market sector or geographic location in which the Fund is invested or uses a similar investment methodology to that used in managing the Fund.

The Fund is actively managed in reference to the 1/3 each - Bloomberg Barclays Global Aggregate Credit ex Emerging Markets, USD Hedged; ICE BofAML BB-B Rated Developed Markets High Yield Constrained Index, USD Hedged; and JPMorgan EMBI Global, USD Hedged as further outlined in the prospectus.

The Morningstar Analyst Rating™ is not a credit or risk rating. It is a subjective evaluation performed by Morningstar’s manager research group, which consists of various Morningstar, Inc. subsidiaries (“Manager Research Group”). In the United States, that subsidiary is Morningstar Research Services LLC, which is registered with and governed by the U.S. Securities and Exchange Commission. The Manager Research Group evaluates funds based on five key pillars, which are process, performance, people, parent, and price. The Manager Research Group uses this five pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark, or in the case of exchange-traded funds and index mutual funds, a relevant peer group, over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weight of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s conviction in a fund’s prospects for outperformance. Analyst Ratings ultimately reflect the Manager Research Group’s overall assessment, are overseen by an Analyst Rating Committee, and are continuously monitored and reevaluated at least every 14 months. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to global.morningstar.com/managerdisclosures/.

The Morningstar Analyst Rating (i) should not be used as the sole basis in evaluating a fund, (ii) involves unknown risks and uncertainties which may cause the Manager Research Group’s expectations not to occur or to differ significantly from what they expected, and (iii) should not be considered an offer or solicitation to buy or sell the fund.

© 2020 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.