Monthly Income Fund (Canada)

Fund Code: PMO005

Updated 18 August 2017

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  • DAILY NAV (CAD)
    14.43
  • DAILY YTD RETURN
    5.57%
  • TOTAL NET ASSETS (CAD)
    12,411 MM
    (as of 31-07-2017)
  • TOTAL NET ASSETS (CAD)
    12,411 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 current income 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 Monthly Income Fund (Canada) may be an attractive option for income-oriented investors who seek a bond investment offering the potential for a relatively high and consistent stream of income with an emphasis on high-quality fixed income securities. The Fund is actively managed in an effort to maximize current income while maintaining a relatively low risk profile, with a secondary goal of capital appreciation.

Why Invest in This Fund?

Pursues income across global fixed-income sectors

The global economic landscape is constantly changing, causing different bond sectors to go in and out of favor. This Fund’s multi-sector approach allows it to seek out the best income-generating ideas in any given market climate, targeting multiple sources of income from a global opportunity set.

An explicit mandate to avoid concentrated risk

Rather than pursue only the highest income streams from potentially risky securities, the Fund seeks high and consistent dividend income from diversified sources. To maintain its higher average credit quality, the Fund limits below-investment-grade holdings to 50%. Of course, its investments in fixed-income securities will fluctuate in value in response to interest rate changes; rising rates will cause fixed-income securities held by the Fund to decrease in value.

Access to proven expertise

PIMCO has been actively managing income-producing securities for more than 30 years and is recognized as one of the world’s premier bond managers. Known for our innovative philosophy, proven expertise, extensive resources and experienced managers, we have dedicated specialists in virtually every sector of global fixed income.

PIMCO Investment Philosophy and Process

Founded on the principle of diversification, PIMCO believes no single strategy should dominate returns. The firm’s investment process utilizes both top-down and bottom-up approaches to selecting investments with the goal of combining perspectives from an economic, big-picture standpoint (top-down) and security level (bottom-up) to in an effort to consistently add value over time within acceptable levels of portfolio risk. 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 – these 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

Bloomberg Barclays U.S. Aggregate Index (CAD Hedged)

PRIMARY BENCHMARK DESCRIPTION

Bloomberg Barclays U.S. Aggregate Index (CAD Hedged) represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis. It is not possible to invest directly in an unmanaged index.

DISTRIBUTION FREQUENCY

Monthly with Daily Accrual

SERIES INCEPTION

20-01-2011

Managers

Alfred T. Murata

Portfolio Manager, Mortgage Credit

View Profile

Daniel J. Ivascyn

Group Chief Investment Officer

View Profile

Distributions

Historical Prices & Distributions

Latest Distributions ($/Share)1 as of 31-07-2017 (CAD) 0.0382
Distribution (YTD) 2 as of 31-07-2017 (CAD) 0.2861
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 1.25%
Management Expense Ratio (%)4 1.38%

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 $14.43 One Day Return 0.02%
Daily Change $0.00 Daily YTD Return 5.57%
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

Government Related 1.18
Mortgage 0.66
Emerging Markets 0.55
High Yield Credit 0.32
Invest. Grade Credit 0.31
Net Other Short Duration Instruments5 0.06
Municipal/Other 0.00

Duration in Years

Effective Duration (yrs) 3.09
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.