Investment Grade Credit Fund (Canada)

Fund Code: IGCF

Updated 23 May 2024

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  • DAILY MARKET PRICE (CAD)
    $16.16
  • PREMIUM / DISCOUNT
    -0.32%
  • DAILY NAV (CAD)
    $16.21
  • DAILY YTD RETURN
    -0.86%
  • UNITS OUTSTANDING
    750,000
    (as of 23-05-2024)
  • 3 MONTH AVG. DAILY VOLUME
    2,108
    (as of 30-04-2024)
  • FUND INCEPTION DATE
    14-09-2015
  • UNITS OUTSTANDING
    750,000
    (as of 23-05-2024)
  • 3 MONTH AVG. DAILY VOLUME
    2,108
    (as of 30-04-2024)
  • FUND INCEPTION DATE
    14-09-2015

Objective

The Fund seeks to maximize current income consistent with preservation of capital and prudent investment management.

Primary Portfolio

It invests primarily in non-Canadian dollar high quality corporate bonds diversified broadly across industries, issuers, and regions.

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Overview

Fund Overview

Seeks attractive returns from high quality corporate bonds

Combining PIMCO’s forward-looking macroeconomic outlook and extensive bottom-up credit research, the fund helps investors take advantage of opportunities in higher-quality corporate bonds.

Why Invest in This Fund?

Attractive total return potential

The fund aims to provide investors with greater income potential relative to Treasuries and cash, as well as more income and less volatility in returns when compared to equity indexes.

Flexibility to enhance returns

The fund has the ability to broadly diversify across industries, issuers and regions of the corporate bond sector and can seek to add value through investments in high quality U.S. government bonds, mortgages and foreign bonds.

Extensive credit resources and research

Employing a disciplined approach to credit research, the fund accesses PIMCO’s team of more than 50 bottom-up credit investment professionals and utilizes top-down, bottom-up and valuation screens to identify what we believe are the most attractive opportunities in global credit markets.

Our Expertise

A longtime investment manager, Mark Kiesel is the CIO of Global Credit, the global head of PIMCO's corporate bond portfolio management group and a senior member of the investment strategy and portfolio management group.

PRIMARY BENCHMARK

Bloomberg U.S. Credit Index CAD Hedged

PRIMARY BENCHMARK DESCRIPTION

Bloomberg U.S. Credit Index CAD Hedged is an unmanaged index comprised of publicly issued U.S. corporate and specified non-U.S. debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. To qualify, bonds must be SEC-registered. This index was formerly known as the Bloomberg Credit Investment Grade Index. It is not possible to invest directly in an unmanaged index.

DISTRIBUTION FREQUENCY

Monthly

SERIES INCEPTION

29-09-2017

PRIMARY LISTING EXCHANGE

Toronto Stock Exchange

Managers

Mark R. Kiesel

CIO Global Credit

View Profile for Mark R. Kiesel

Mohit Mittal

CIO Core Strategies

View Profile for Mohit Mittal

Amit Arora

Portfolio Manager, Investment Grade

View Profile for Amit Arora

Distributions

Historical Prices & Distributions

Latest Distributions ($/Unit) as of 23-05-2024 (CAD) 0.0667
Distribution (YTD) as of 23-05-2024 (CAD) 0.2699

Fees & Expenses

Management Fee (%)1 0.75%
Management Expense Ratio (%)2 0.85%

disclosures

1The Annual Management Fee is used to pay for investment management services and general administration of the fund, this fee does not include taxes.
2As of 12/31/2023. 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 23-05-2024

NAV $16.21 Market Price $16.16
Daily Change $-0.12 Daily Change $-0.14
One Day Return -0.31% One Day Return -0.45%
Premium / Discount -0.32%

disclosures

Past performance is not a guarantee or a reliable indicator of future returns. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Performance data current to the most recent month-end is available by calling +44 203 3640 1552.
Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index.
A rating is not a recommendation to buy, sell or hold a fund. © 2021 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (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. 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
Market Value %

Government Related 8.43
Securitized 13.38
Invest. Grade Credit 69.40
High Yield Credit 3.70
Emerging Markets 2.75
Municipal/Other 0.13
Net Other Short Duration Instruments 2.19

Duration in Years

Effective Duration (yrs) 6.37

Top 10 Industry
MV %

Banks 17.68
Electric Utility 9.53
Pipelines 6.17
Financial Other 3.86
Brokerage 3.68
Technology 2.87
Wireless 2.76
Gaming 2.36
Healthcare 2.36
Airlines 2.21

disclosures

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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RELATED

Bond by Bond

Stories from PIMCO’s Bottom-Up Process

Disclosures

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.


No offering is being made by this material. Interested investors should obtain a copy of the prospectus, which is available on pimco.ca or from your Financial Advisor.

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. 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. 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. Commodities contain heightened risk, including market, political, regulatory and natural conditions, and may not be suitable for all investors. Investing in distressed companies (both debt and equity) is speculative and may be subject to greater levels of credit, issuer and liquidity risks, and the repayment of default obligations contains significant uncertainties; such companies may be engaged in restructurings or bankruptcy proceedings. Convertible securities may be called before intended, which may have an adverse effect on investment objectives. Entering into short sales includes the potential for loss of more money than the actual cost of the investment, and the risk that the third party to the short sale may fail to honor its contract terms, causing a loss to the portfolio. Currency rates may fluctuate significantly over short periods of time and may reduce the returns of a portfolio. 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. The Fund is non-diversified, which means that it may concentrate its assets in a smaller number of issuers than a diversified fund.

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


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. PIMCO Canada has retained PIMCO LLC as sub-adviser. PIMCO Canada will remain responsible for any loss that arises out of the failure of its sub-adviser.


PIMCO Canada Corp, 199 Bay Street, Suite 2050, Commerce Court Station, P.O. Box 363, Toronto, ON, M5L 1G2, 416-368-3350