Balanced Income Fund (Canada)

Fund Code: PMO010

Updated 18 August 2017

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  • DAILY NAV (CAD)
    10.48
  • DAILY YTD RETURN
    3.80%
  • TOTAL NET ASSETS (USD)
    31 MM
    (as of 31-07-2017)
  • TOTAL NET ASSETS (USD)
    31 MM
    (as of 31-07-2017)
  • CLASS
    Multi Asset
  • Series Inception Date
    19-10-2015
  • CLASS
    Multi Asset
  • Series Inception Date
    19-10-2015

Objective

The Fund seeks to maximize current income while providing long term
capital appreciation.

Primary Portfolio

It invests primarily in a combination of fixed income and equity securities.​

Overview

Fund Overview

A balanced approach to income investing

PIMCO Balanced Income Fund (Canada) aims to provide attractive current income as well as capital appreciation over the long term by combining the higher capital appreciation and dividend-paying potential of equities with the lower volatility and attractive income potential of fixed income.

Why Invest in This Fund?

Benefits of a balanced approach

PIMCO’s balanced equity and fixed income strategy strives to provide the attractive return potential of equities with the income and capital preservation potential of fixed income, making it beneficial for investors as a part of a diversified portfolio.

Global and flexible

In an effort to capitalize on changing market conditions, the fund’s investment strategy is global which provides the portfolio management team with considerable flexibility to invest in the best income-generating opportunities across the capital structure, diversified by geography and sector.

Driven by research

For fixed income, PIMCO portfolio managers take a broad-based approach, targeting multiple sources of potential income from an expansive opportunity set across both higher yielding and higher quality bonds. For equities, portfolio managers from Research Affiliates employ a fundamentally-weighted, active global developed equity strategy built on smart beta that seeks higher-yielding companies generating sustainable dividends at attractive valuation.

Industry-leading portfolio management

The fixed income component is managed by PIMCO's Alfred Murata and Dan Ivascyn, both current managers of the Monthly Income Fund (Canada). The equity component is managed by Research Affiliates' Rob Arnott and Chris Brightman, experienced equity investors of the Research Affiliates Equity (“RAE”) strategies. ​

PRIMARY BENCHMARK

50% MSCI World CAD Hedged/50% Global Bloomberg Barclays Aggregate CAD Hedged

PRIMARY BENCHMARK DESCRIPTION

The benchmark is a blend of 50% MSCI World Index CAD Hedged/50% Global Bloomberg Barclays Aggregate CAD Hedged. The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of 23 developed market country indices. Bloomberg Barclays Global Aggregate (CAD Hedged) Index provides a broad-based measure of the global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian Government securities, and USD investment grade 144A securities.

DISTRIBUTION FREQUENCY

Quarterly with Daily Accrual

SERIES INCEPTION

19-10-2015

Managers

Alfred T. Murata

Portfolio Manager, Mortgage Credit

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Daniel J. Ivascyn

Group Chief Investment Officer

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Robert Arnott

Founder and Chairman, Research Affiliates

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Christopher Brightman

Chief Investment Officer, Research Affiliates

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Distributions

Historical Prices & Distributions

Latest Distributions ($/Share)1 as of 30-06-2017 (CAD) 0.0368
Distribution (YTD) 2 as of 30-06-2017 (CAD) 0.0751
Yields & Distributions Footnotes & Disclosures

disclosures

1Data does not include special cash dividends.
2Data is based on distributions since the most recent calendar year end and does not include special cash dividends.

Fees & Expenses

Management Fee (%)3 1.90%
Management Expense Ratio (%)4 2.06%

disclosures

3The above noted rates incorporate a reduction to the annual rates of the management fee for the PIMCO Balanced Income Fund (Canada) of 0.15%. When the reduction is no longer in effect, the management fee for the PIMCO Balanced Income Fund (Canada) will be: Series A (2.05%), Series O (1.95%), Series F (1.05%), and Series M (0.95%). At minimum, the reduction will be in effect until July 1, 2016, and may be renewed in our sole discretion.
4As of 31/12/2016. Management expense ratio is based on total expenses which includes the Management Fee (excluding commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized percentage of daily average net asset value during the period.

Prices & Performance

Daily Statistics

All data as of 18-08-2017

NAV $10.48 One Day Return 0.01%
Daily Change $0.00 Daily YTD Return 3.80%
Click here to view Historical Prices
  • Average Annual Returns
  • Cumulative Returns

All data as of

  • Daily
  • Month End

All data as of

  • Daily
  • Month End

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. ​​​​​​​

Calendar Year Returns %

All data as of

Growth of $10,000 (hypothetical)

Morningstar Ratings

Prices & Performance Footnotes & Disclosures

disclosures

A sales communication that includes a rate of return or a mathematical table illustrating the potential effect of a compound rate of return must contain a statement in substantially the following words: “[The rate of return or mathematical table shown] is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of [the investment fund or asset allocation service] or returns on investment [in the investment fund or from the use of the asset allocation service].”

Investments made by a Fund and the results achieved by a Fund are not expected to be the same as those made by any other PIMCO-advised Fund, including those with a similar name, investment objective or policies.

A Fund may be forced to sell a comparatively large portion of its portfolio to meet significant shareholder redemptions for cash, or hold a comparatively large portion of its portfolio in cash due to significant share purchases for cash, in each case when the Fund otherwise would not seek to do so, which may adversely affect performance.​

© 2017 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. Morningstar Rating past performance is no guarantee of future results. For more detailed information about Morningstar Rating, including its methodology, please go to: The Morningstar Rating Methodology.

Portfolio Composition

All data as of unless otherwise stated

Sector Allocation %

MV% DWE%
Government Related 34.10 43.22
Mortgage 30.00 27.96
Invest. Grade Credit 5.62 10.95
High Yield Credit 16.33 5.17
Emerging Markets 12.14 10.55
Municipal/Other 1.44 0.54
Net Other Short Duration Instruments5 0.35 1.63

Maturity %

0-3 mos 0.08
3-6 mos 8.99
6-9 mos 2.84
9-12 mos 1.77
1-3 yrs 8.18
3-5 yrs 26.39
5-10 yrs 49.60
10-20 yrs 5.95
20+ yrs -3.81
Effective Maturity (yrs) 5.49

Duration in Years

Effective Duration (yrs) 1.82

Top Holdings Market Value %

(as of 7/31/2017)

HSBC Holdings PLC 1.62
Banco Santander Sa 1.17
Pfizer Inc 1.09
International Business Machines Corporation 0.97
Exxon Mobil Corporation 0.93
Royal Dutch Shell Plc 0.85
JPMorgan Chase & Co 0.74
Bp Plc 0.71
Chevron Corporation 0.71
Sanofi 0.68

GICS Sector Weights

Financials 26.20
Energy 12.77
Industrials 9.99
Health Care 8.79
Consumer Discretionary 8.07
Information Technology 7.83
Utilities 6.90
Materials 6.44
Consumer Staples 6.19
Telecommunication Services 5.54

Top Countries Market Value %

United States 74.31
Japan 8.46
United Kingdom 8.01
France 5.42
Australia 4.81
Canada 4.23
Germany 3.26
Brazil 2.35
Netherlands 1.93
Spain 1.86

Equity Statistics

Stocks in Portfolio 411
P/E Ratio (Forward) 13.42
Median Market Cap ($US MM) 35,525.45
Active Share (%) 75.26
P/E Ratio (Trailing) 15.81
Weighted Avg Market Cap ($US MM) 73,462.89
Portfolio Composition Footnotes & Disclosures

disclosures

5Net Other Short Duration Instruments includes securities and other instruments (except instruments tied to emerging markets by country of risk) with an effective duration less than one year and rated investment grade or higher or, if unrated, determined by PIMCO to be of comparable quality, commingled liquidity funds, uninvested cash, interest receivables, net unsettled trades, broker money, short duration derivatives (for example Eurodollar futures) and derivatives offsets. With respect to certain categories of short duration securities, the Adviser reserves the discretion to require a minimum credit rating higher than investment grade for inclusion in this category. Derivatives Offsets includes offsets associated with investments in futures, swaps and other derivatives. Such offsets may be taken at the notional value of the derivative position which in certain instances may exceed the actual amount owed on such positions.
Duration is a measure of the fund's price sensitivity to changes in interest rates expressed in years.

Portfolio structure is subject to change without notice and may not be representative of current or future allocations.

Effective duration is the duration for a bond with an embedded option when the value is calculated to include the expected change in cash flow caused by the option as interest rates change.

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Disclosures

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 the current low interest rate environment increases this risk. Current 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. Equities may decline in value due to both real and perceived general market, economic and industry conditions. Derivatives may involve certain costs and risks, such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. For a complete description of the risks associated with a particular Fund, please refer to the Fund’s prospectus. Sovereign securities are generally backed by the issuing government, obligations of U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value. 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.  Sovereign securities are generally backed by the issuing government, obligations of the U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value.  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.

The products and services provided by PIMCO Canada Corp. may only be available in certain provinces or territories of Canada and only through dealers authorized for that purpose.


This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product.


The Funds offer different series, which are subject to different fees and expenses (which may affect performance), having different minimum investment requirements and are entitled to different services.


PIMCO Canada has retained PIMCO LLC as a subadvisor. PIMCO Canada remains responsible for any loss that arises out of the failure of its sub-advisor.