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.
Bloomberg Barclays U.S. Aggregate Index
PRIMARY BENCHMARK DESCRIPTION
Bloomberg Barclays U.S. Aggregate Index 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.
PRIMARY LISTING EXCHANGE
Toronto Stock Exchange