This is a marketing communication. Please refer to the Prospectus of the PIMCO Funds: Global Investors Series Plc and to the KIID before making any final investment decisions.
FUND DESCRIPTION
The Global Investment Grade Credit ESG Fund is an actively managed portfolio that invests primarily in investment grade global corporate instruments, while focusing on environmental-, social-, and governance oriented (ESG) principles. The fund is diversified broadly across industries, issuers, and regions on the basis of PIMCO’s top-down, bottom-up and internal ESG screening process which includes ESG exclusions, evaluation and engagement decisions.
Fund Specific Risks
Credit and Default Risk
A decline in the financial health of an issuer of a fixed income security can lead to an inability or unwillingness to repay a loan or meet a contractual obligation. This could cause the value of its bonds to fall or become worthless. Funds with high exposures to non-investment grade securities have a higher exposure to this risk.
Currency Risk
Changes in exchange rates may cause the value of investments to decrease or increase.
Derivatives and Counterparty Risk
The use of certain derivatives could result in the fund having a greater or more volatile exposure to the underlying assets and an increased exposure to counterparty risk. This may expose the fund to larger gains or losses associated with market movements or in relation to a trade counterparty being unable to meet its obligations.
Emerging Markets Risk
Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty and operational risk. Investments in these markets may expose the fund to larger gains or losses.
Liquidity Risk
Difficult market conditions could result in certain securities becoming hard to sell at a desired time and price.
Interest Rate Risk
Changes in interest rates will usually result in the values of bond and other debt instruments moving in the opposite direction (e.g. a rise in interest rates likely leads to fall in bond prices).
Mortgage Related and Other Asset Backed Securities Risks
Mortgage or asset backed securities are subject to similar risks as other fixed income securities, and may also be subject to prepayment risk and higher levels of credit and liquidity risk.
INVESTOR BENEFITS
The fund seeks to offer diversification benefits and greater income potential relative to government bonds or domestic corporate strategies, while incorporating ESG-related considerations.
FUND ADVANTAGE
The fund looks to benefit from the PIMCO investment process, which combines our global top-down views on the macroeconomic environment with independent bottom-up analysis. The PIMCO investment team has the experience and depth to actively manage a broad and diversified opportunity set. The fund will also favor issuers believed to have best-in-class ESG practices and those who are working to enhance them.
BENCHMARK
Bloomberg Global Aggregate Credit Index (GBP Hedged)
BENCHMARK DESCRIPTION
Bloomberg Global Aggregate Credit Index (GBP Hedged) is an unmanaged Index that 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. This index excludes Government and Securitized Securities. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian securities, and USD investment grade 144A securities. It is not possible to invest directly in an unmanaged index.
SHARE CLASS INCEPTION
28.02.2020
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