PIMCO
Website:
www.pimco.com
AGEST and PIMCO
AGEST employs PIMCO to manage part of the fixed interest portfolio of the fund.
The investment structure in place allows PIMCO to move assets between 3 of their funds (PIMCO Australian Bond Fund, PIMCO Global Return Fund and PIMCO Global Real Return Fund) as they deem appropriate, in accordance with their objectives and strategies outlined below.
Objective and Strategy
The investment objectives and strategies for each of the 3 PIMCO funds in which AGEST invests are outlined below.
PIMCO Australian Bond Fund
Objective
The Australian Bond Fund seeks to maximise return through investment in fixed interest securities domiciled in, or denominated in the currencies of, Australia and New Zealand.
The benchmark for comparison is the UBSA Composite Bond Index (All Maturities)*.
*This index is an Australian bond index which includes bonds issued by the Commonwealth Government, state government guaranteed treasury corporations and semi-government authorities, as well as prime corporate issues.
Strategy
The Australian Bond Fund invests principally in a diversified portfolio of Australian and New Zealand investment grade fixed interest securities. The average portfolio duration of this Fund will normally vary within a 2 to 5 year time frame.
PIMCO Global Bond Fund
Objective
The Global Bond Fund seeks to maximise return through investment in fixed interest securities domiciled in markets around the world.
The benchmark for comparison is the Lehman Brothers Global Aggregate Bond Index (Hedged in $A)*.
*This benchmark index is made up of other Lehman Brothers indexes, including: Government/Corporate Bond Index, Mortgage-Backed Securities Index and Asset-Backed Securities Index.
Strategy
The Global Bond Fund invests in a portfolio of fixed interest securities primarily denominated in major foreign currencies. The average portfolio duration of this Fund will normally vary within a 3 to 7 year time frame.
PIMCO Global Real Return Fund
Objective
The Global Real Return Fund seeks to maximise return primarily through global holdings of inflation-linked bonds.
The benchmark for comparison is the Barclays Capital Global Inflation Linked Bond Index (Hedged in $A).
Strategy
The Global Real Return Fund invests in inflation-linked bonds of varying maturities issued by governments, their agencies or instrumentalities, and corporations.
Inflation-linked bonds are fixed income securities that are structured to provide protection against inflation. The value of the bond's principal or the interest rate paid on the bond is adjusted to track changes in an official inflation measure. 'Real Return' equals total return less the estimated cost of inflation, which is typically measured by the change in an official inflation measure. The average portfolio duration of this Fund will be +/- 2 years versus the benchmark.
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