Global Advantage Strategy Bond Fund (Canada)

Fund Code: PMO006

Updated 18 August 2017

Loading...

  • {{ currentShareClassCode }}

  • DAILY NAV (CAD)
    10.56
  • DAILY YTD RETURN
    3.69%
  • TOTAL NET ASSETS (CAD)
    186 MM
    (as of 31-07-2017)
  • TOTAL NET ASSETS (CAD)
    186 MM
    (as of 31-07-2017)
  • CLASS
    Fixed Income
  • Series Inception Date
    20-01-2011
  • CLASS
    Fixed Income
  • Series Inception Date
    20-01-2011

Objective

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

Primary Portfolio

Primarily non-Canadian dollar Fixed Income instruments of varying maturities

Overview

Fund Overview

The PIMCO Global Advantage Strategy Bond Fund (Canada) is designed to help investors seize opportunities presented by structural transformations in the global economy. The Fund invests in fixed income securities from both developed and developing markets, and is benchmarked to the proprietary PIMCO Global Advantage Bond Index (GLADI™) partially hedged back to CAD, a GDP-weighted index intended to offer investors an improved fixed income market “beta”.

Why Invest in This Fund?

Forward-looking positioning

PIMCO’s Global Advantage Bond Index (GLADI) is the backbone of the Global Advantage Bond Strategy Bond Fund (Canada). The index is intended to provide an alternative measure of fixed-income beta through its wide coverage of fixed-income opportunities and sectors, from developed to emerging markets, nominal to real assets, and cash to derivative instruments. Its unique GDP-weighting methodology puts an emphasis on economic dynamism rather than past issuance of debt, making the index forward-looking in nature. Importantly, this contrasts with the market cap-weighting of traditional indices, which emphasizes past debt issuance and is thus backward looking. Since capital market development tends to lag behind economic growth, the Fund seeks to strategically position its portfolio for where opportunities are likely to be, not where they have been.

Broad diversification

The Fund aims to provide a core bond solution across global markets and sectors—from developed to developing countries, nominal to real (inflation-hedging) assets and cash to derivatives. With a portfolio that is more representative of the global opportunity set, investors may be better positioned to benefit from long-term change. Of course, diversification does not guarantee a profit or eliminate the risks of investing.

Expert management positioned around the world

Andrew Balls, Deputy CIO, managing director and head of European portfolio management is at the helm of this strategy supported by PIMCO’s talented portfolio management resources located around the world. Moreover, the portfolio benefits from PIMCO’s four decades of active bond management experience and the expertise of its international portfolio managers from developed market rates specialists to emerging markets portfolio managers, inflation-linked bond experts to credit research analysts.

PIMCO Investment Philosophy and Process

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

PIMCO Global Advantage Bond Index (GLADI) (CAD, Partially Hedged) (NY Close)

PRIMARY BENCHMARK DESCRIPTION

The PIMCO Global Advantage Bond Index (GLADI) (CAD, Partially Hedged) (NY Close) is a diversified global index that covers a wide spectrum of global fixed income opportunities and sectors, from developed to emerging markets, nominal to real asset, and cash to derivative instruments. Unlike traditional indices, which are frequently comprised of bonds weighted according to their market capitalization, GLADI uses GDP-weighting which puts an emphasis on faster-growing areas of the world and thus makes the index forward-looking in nature. PIMCO's GLADI methodology is intellectual property covered by U.S. Patent No. 8,306,892. GLOBAL ADVANTAGE and GLADI are trademarks of Pacific Investment Management Company LLC. It is not possible to invest directly in an unmanaged index.

SECONDARY BENCHMARK

Bloomberg Barclays Global Aggregate (CAD Hedged) Index

SECONDARY BENCHMARK DESCRIPTION

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. It is not possible to invest directly in an unmanaged index.

DISTRIBUTION FREQUENCY

Quarterly

SERIES INCEPTION

20-01-2011

Managers

Andrew Balls

CIO Global Fixed Income

View Profile

Sachin Gupta

Head of Global Portfolio Management Desk

View Profile

Pramol Dhawan

Portfolio Manager, Emerging Markets

View Profile

Distributions

Historical Prices & Distributions

Latest Distributions ($/Share)1 as of 30-06-2017 (CAD) 0.1043
Distribution (YTD) 2 as of 30-06-2017 (CAD) 0.1043
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 1.30%
Management Expense Ratio (%)4 1.44%

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 31/12/2016. 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 $10.56 One Day Return -0.10%
Daily Change $-0.01 Daily YTD Return 3.69%
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].”
Effective May 30th, 2014, at close of business, 4pm EST, the USD unhedged series of both the PIMCO Monthly Income Fund (Canada) and the PIMCO Global Advantage Strategy Bond Fund (Canada) are closed to further investment. All other series of the funds, including the US$ series, will remain open to further investments. If you have any questions or require further information, please do not hesitate to contact PIMCO Canada at 866 341-3350 or infocanada@pimco.com.

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 - Duration in Years

Inflation Linked 0.80
EM External 0.75
Covered Bonds and Pfandbriefe 0.74
Securitised 0.64
Investment Grade Credit 0.63
EM Local 0.56
High Yield Credit 0.09
Net Other Short Duration Instruments5 0.03
Municipals 0.00
Other 0.00
Government Related -0.05

Duration in Years

Effective Duration (yrs) 4.18

Top Countries
DWE %

United States 37.17
Denmark 10.44
Mexico 7.02
Canada 6.39
Sweden 6.24
Indonesia 4.55
Slovenia 3.84
Peru 3.66
Kuwait 2.85
New Zealand 2.39

Top 10 Country Exposure (FX%)

Mexico 4.10
United States 2.49
Indonesia 2.21
Poland 2.15
India 2.02
China 1.66
South Korea 1.40
Thailand 1.21
Colombia 1.16
Brazil 1.12
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.

Documents

See More

Please select one or more documents to take an action.

The highlighted items cannot be added to my contents.

The highlighted items cannot be ordered.

Please resubmit request to proceed.

RELATED

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.