Canadian Total Return Bond Fund

Fund Code: PMO502

Updated 23 May 2019

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  • DAILY NAV (CAD)
    11.19
  • DAILY YTD RETURN
    4.86%
  • TOTAL NET ASSETS (CAD)
    442 MM
    (as of 30-04-2019)
  • TOTAL NET ASSETS (CAD)
    442 MM
    (as of 30-04-2019)
  • CLASS
    Fixed Income
  • Series Inception Date
    31-01-2012
  • CLASS
    Fixed Income
  • Series Inception Date
    31-01-2012

Objective

Seeks maximum total return, consistent with preservation of capital and prudent investment management.

Primary Portfolio

Primarily Canadian dollar Fixed Income instruments of varying maturities

Overview

Fund Overview

The PIMCO Canadian Total Return Bond Fund offers diversification and the possibility of higher investment returns relative to the FTSE TMX Canada Universe Bond Index. It searches for value in every sector of the bond market. Thus, the Fund could be used as a “core” fixed income holding. Investors seeking to balance equity holdings in an aggressive investment portfolio with a lower volatility fixed income option should consider the Total Return Strategy as their fixed income strategy. History has shown that there is a typically low correlation between the equity and fixed income markets. Therefore, employing the Total Return Strategy in combination with an equity portfolio may allow for greater diversification and potentially reduces the risk of swings in the portfolio’s value.

Why Invest in This Fund?

Greater exposure to interest rate trends

The Fund invests in a diversified portfolio of primarily Canadian dollar fixed income instruments of varying maturities, with an average duration that normally varies within two years (plus or minus) of the FTSE TMX Canada Universe Bond Index. Duration is a measure of a security’s price sensitivity to interest rate changes, measured in years; a longer duration implies greater interest rate sensitivity and return potential than intermediate-duration bonds, but also higher volatility. The Fund can be used as a core holding for investors with a higher risk tolerance, or as an allocation to position a portfolio for expected interest rate trends.

Value-added active management

We seek to add value through active management of the Fund. The portfolio offers flexibility to invest across sectors and issuers. Although the Fund is subject to greater interest rate risk than shorter-duration funds, it strives to limit this risk by maintaining the portfolio’s duration within a moderate range around the benchmark’s duration. The Fund employs PIMCO’s total return philosophy, seeking to balance capital appreciation potential and income.

PIMCO Investment Philosophy and Process

The firm’s investment process utilizes both “top-down” and “bottom-up” strategies with the goal of combining perspectives from both the portfolio and security levels in an effort to consistently add value over time within acceptable levels of portfolio risk. In constructing portfolios, the investment management team evaluates the following:

Top-down strategies – which focus on duration, yield curve positioning, volatility and sector rotation. These strategies are driven by our secular outlook of the forces likely to influence the economy and financial markets over the next three to five years, as well as our cyclical views over a six-to-nine month time horizon.

Bottom-up strategies – which drive our security selection process and facilitate the identification and analysis of undervalued securities. Here, we employ advanced proprietary analytics and expertise in all major fixed income sectors.

PRIMARY BENCHMARK

FTSE TMX Canada Universe Bond Index

PRIMARY BENCHMARK DESCRIPTION

FTSE TMX Canada Universe Bond Index is designed to be a broad measure of the Canadian investment-grade fixed income market. Returns are calculated daily, and are weighted by market capitalization, so that the return on a bond influences the return on the index in proportion to the bonds market value. It is intended to be a transparent index, with individual security holdings disclosed electronically each day. The Universe Index is divided into a variety of sub-indexes according to term and credit. The main term subsectors are Short, Mid, and Long. There are four main credit or borrower categories: bonds issued by the Government of Canada (including Crown Corporations), Provincial bonds (including provincially-guaranteed securities), Municipal Bonds, and Corporate Bonds. The Corporate sector is further divided into sub-sectors based on credit rating: a combined AAA/AA sector, a single-A sector, and a BBB sector. It is not possible to invest directly in an unmanaged index.

DISTRIBUTION FREQUENCY

Quarterly

SERIES INCEPTION

31-01-2012

Managers

Ed Devlin

Head of Canadian Portfolio Management

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Vinayak Seshasayee

Portfolio Manager

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Michael Kim

Portfolio Manager, Canadian Bonds

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Distributions

Historical Prices & Distributions

Latest Distributions ($/Share)1 as of 29-03-2019 (CAD) 0.1394
Distribution (YTD) 2 as of 29-03-2019 (CAD) 0.1394
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 0.46%
Management Expense Ratio (%)4 0.76%

disclosures

3The Annual Management Fee is used to pay for investment management services and general administration of the fund, this fee does not include taxes.
4As of 31/12/2018. 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 23-05-2019

NAV $11.19 One Day Return 0.54%
Daily Change $0.06 Daily YTD Return 4.86%
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 %

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